Hey Empire Builders,

Welcome to this week’s Franchise Empire Newsletter, where we share specific franchise opportunities that we think are interesting, and examples of everyday folks building their empires.

What I didn’t know before buying my first franchise is that there are some businesses that simply have an incredible track record of franchisees being successful.

I just got excited about opening up a juice bar, and got laser focused on that- without having any understanding of what other options were out there.

But the biggest mistake I made  was not really understanding the sales to investment ratio…

Meaning what is the average sales that a franchise puts in their Item 19 compared to the amount of start up costs. 

I see most franchise buyers making the same mistake I did. 

Getting so emotionally excited about a specific franchise and forcing a square peg in a round hole.

You need to work backwards in the process and choose the franchise accordingly. 

Meaning, identify your destination and outcome, aka your goal. (I want to replace $150k of income as an example).

THEN…you work to find specific franchises that are the right vehicle to get you there based on your financial situation and skillset.

Realistically I would’ve needed 3-5 locations to replace the peak of my income from the corporate world. Fortunately , at the time we had no kids and my wife is a strong earner- so to just replace 60% or so was enough to be able to make the transition into full time entrepreneurship.

But 3-5 locations would’ve taken between $900k- $1.5million in start up costs. (NEWSFLASH: We couldn’t afford to do that!)

There are businesses out there producing the end results I needed to replace the peak of my multiple 6 figure corporate income for $300k in start up costs or less.

So the moral of the story is, there is a right strategy and wrong strategy. 

Choose the strategy that BEST sets you up for success. 

Which means you may need to be more open minded, rather than choosing a business that is going to set you up for disappointment, but you think would be really “cool” to own.

Drowning in debt, and slaving a way in a business that makes barely any money is not “cool”.

It’s easy to develop a passion overtime  for a business that is helping you support your family and turns you into a full time and respected entrepreneur.

Let’s get it!

Tariq

CEO & Founder, Franchise Empire

Today, in 5 minutes or less:

✔ 1 Specific resale franchise for sale

✔ 1 Franchise of the week

✔ 1 Client Case study of someone just like you

✔ Latest episode of The Franchise Empire Show

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Aspiring Franchise Owners

Franchise resales possess many benefits for aspiring business owners – established cash flow, experienced employees, systems in place, and brand awareness to name a few. 

This week, our featured resale comes from Anago Cleaning Systems, a master franchise opportunity that provides commercial cleaning services. Started in 1989, Anago now has 48 master franchise locations throughout the country.

• Asking price of $400,000

• ~$120K per month in commercial cleaning revenue / accounts

• Currently being run completely absentee

• Opportunity to establish a centralized office location in Las Vegas 

• Franchisor may assist in hiring initial salespeople to help grow the territory 

• According to the 2023 FDD, the AUV for 38 reporting master franchisors was $2.73M in 2022.

• The way Anago works: you are a Master Franchisor in an exclusive territory. You sell Unit Franchises to individuals looking to own a cleaning business. The Units pay you to handle the daytime aspects of their cleaning business like sales, marketing, invoicing and collections. The Master does not do the cleaning – the Units handle the cleaning. As the Master, you collect residual income on all the clients you provide to the Units – things like franchise notes, royalty, administration and insurance.

• If you’re comfortable with B2B sales and/or managing a sales team, this could be a scalable opportunity with recurring revenue to take a look at.

Ashley and her husband Ryan had been entrepreneurs for 15 years. COVID wrecked their business and they came to us excited about a coffee shop franchise.

I was honest and told them I thought it was a TERRIBLE idea. It was going to just duplicate more of the stress they were wanting to avoid, and it would be very high start up costs to scale and produce the type of return on investment they were looking for.

Fortunately they were coachable, and through our system Ashley said it was like getting a “Masters” in franchising. Cool!

Check out their story below.

Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)

Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.

This Will Save You So Much Time.

We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.

• Original location started in 2001 in Orlando, FL

• Started franchising in 2017 and have over 100 units sold in 2024

• Acquired by the Outdoor Living Brands parent company Empower Brands in 2021

• Corporate Owned Territories: 2

• Franchise Units: 74

• Franchise Fee: $59,500

• Royalty: 6%, 5%, 4% – declines as your revenue increases

• National Marketing Fee: 1%

• Total Investment Range: $130,500 – $206,800

• Term: 7 years
  **Numbers according to their FDD released on January 18, 2023

Superior is the first fence franchise in the US and has already established itself as a leader in the industry. They help both residential and commercial customers with vinyl, wood, aluminum, and chain link fencing as well as railings and gates/entries. They offer financing for customers and tout an amazing 98.5% on-time installation rate. 

Below tables taken from the Superior Fence & Rail 2023 Franchise Disclosure Document – Item 19.

Benefits for the Franchisee:

• Extra Revenue Streams – In addition to installing fence materials to consumers and businesses, they also sell material straight to the customers that prefer to install the fence on their own. They also sell wholesale fence to the trades, which includes fence contractors, landscapers, carpenters and handymen. You’re able to turn 8 SKU’s into hundreds of product options.

• Buying Power – they have strategic partnerships that allow franchisees to procure high-quality materials at 20-30% lower costs than their competitors, resulting in increased margins and enhanced profitability.

• Exclusive Partnership – Superior has a relationship with Home Depot, so any fence leads are referred to the franchisees for installations. thanks to our strategic partnerships and national franchise network. This collaboration gives you a steady stream of qualified leads to fuel your success.

• Large Territories – Population for one territory is at least 400,000 which is higher than a lot of other franchises. You’ll own the major metro areas with just one franchise fee.

• High Revenue Potential – The average gross revenue disclosed in the FDD shows $2.8 million. They break it down and even show gross revenue for first-year franchisees. According to page 37 in their FDD that number was an average of $2.2 million for first-year franchisees in 2022.

Episode #36: How He Made $33 MILLION Owning KFC & Taco Bell Franchises

Dive into the world of quick-service restaurant (QSR) franchises with Peter Rook, a pro who knows all about running different restaurant brands. In this episode, Peter shares his top tips on making your restaurant successful. He talks about the importance of knowing your profits, handling costs wisely, and using smart marketing to attract more customers. If you’re thinking about buying a restaurant or making yours better, Peter’s advice is perfect for you. He also explains how he helps people sell their franchises through Sunbelt’s service, making sure both the seller and buyer are happy.

Join us as Peter Rook teaches you the key things to think about when owning or selling a restaurant franchise. Learn how to be ready, set the right expectations, and understand the real value of your business. This talk is filled with helpful tips for anyone looking to grow in the restaurant business. Get ready to learn and start making your restaurant dream a success with Peter’s expert advice!

Watch on YouTube

Listen on Podcast Platforms

That’s a wrap for this week’s Franchise Empire newsletter. 

Feel free to reply with any questions, or feedback. I appreciate and value your time and attention.

I’ll see you at the same time next week!

-Tariq and The Franchise Empire Team

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