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.

How can two franchise owners within the same franchise get totally different results?

Meaning, how can one franchisee have success while the other one struggles?

This past week I got to have coffee with one of our clients who bought a struggling resale franchise last July.

There were two previous owners before him in that exact territory. Both of them never had huge success…

But in January, his sales were up 100% Y/Y over year compared to the previous owner. The previous owner did $30k in sales, and our client did over $65k in sales.

The reality is the difference was him.

Assuming you pick the RIGHT franchise… (there are people who get screwed by picking the wrong one)

Then your biggest factor in whether you succeed or not is YOU.

How do you show up?

How responsive are you?

How decisive are you?

How quickly do you execute?

What’s your commitment to mastering sales and marketing?

How quickly do you give up when experiencing adversity?

When you have confidence in yourself and your abilities, and you back it up with execution…then you know that everyday you wait to find and buy the right business is actually costing you money.

THAT is what scares you. Not the possibility of failing, but the possibility of missed opportunity.

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

Join Our Franchise Buyers Beta Course for
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 one of the largest home inspection franchises in the country, HouseMaster. HouseMaster, established in 1971, has 247 franchise units throughout the United States, making it the oldest home inspection franchise in the U.S. The system of franchise owners provide residential and commercial property inspection services to buyers and sellers of real estate.

• Started in 2017

• Owner is doing inspections part-time and has a team of inspectors

• 2022 gross sales of $319,782 (2023 numbers pending)

• Asking price of $265,000

• Majority of inspections are for residential customers

• The home inspection industry does not seem as scalable as other home services franchise opportunities. However, it can be a profitable business with low overhead and employee counts. 
  

• The right person stepping into this business would likely want to go through HouseMaster’s training and certification program so they could start doing inspections and determine if they want to continue doing inspections, or focus on networking and hiring/managing inspectors. 
  

• In the HouseMaster FDD, the AUV’s increase significantly based on having more than two territories. For this opportunity, it would be important to understand the territory size and room for potential growth.

Rodney was very successful in the corporate world, and was ready to bet on himself- he’s a super sharp guy.

He was nervous about choosing the RIGHT franchise, and he had it narrowed down to 6 so we helped him choose the right one.

Since then he’s been on the local news multiple times representing his business. Check out his 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.

• System4 started in 2004 and has been franchising since then.

• No parent companies or predecessors.

• The original founder is still the President and CEO of the franchise. 

• Corporate Owned Territories: 2

• Franchise Units: 57

• Franchise Fee: $125,000 – $300,000

• Royalty: 1% – 6.2% paid on the Gross Sales Revenue as determined by the “Net Margin” percentage. There’s a big chart and examples explaining how this is calculated. 

• National Marketing Fee: 0%

• Total Investment Range: $157,000 – $377,000

• Term: 20 years
  **Numbers according to their FDD released on June 30, 2023

System4 offers facility services management for commercial businesses. They are the one-stop-shop, providing any and all services that are needed at a facility ranging from inside services (commercial cleaning services, hard floor care, window cleaning, etc.) to outside services (commercial landscaping, parking lot services, lighting maintenance,etc.) and virtually any other facility service needed. Most all of the services are subcontracted. By providing one contact for their customers, it helps them save time and money. Typical customers include offices, medical facilities, fitness centers, schools, daycares, automotive shops, churches and more.

Below tables taken from the System4 2023 Franchise Disclosure Document – Item 19.

Benefits for the Franchisee:

• Minimal Employees – You can operate this franchise with just yourself or one or two employees. All of the work that is done at the facilities is done by subcontractors. The role of the owner is to do business development. You may want to hire someone to help with operations, coordinating the contractors, and customer service, but you can also start by doing all of that on your own while you’re ramping up.

• Existing National Accounts – Many territories already have existing accounts that are currently being run by corporate. This means that when you take over that territory, you have revenue already coming in. Some new franchisees have several accounts that are handed over to them on day 1.

• Work-Life Balance – This franchise operates Monday through Friday during business hours. It’s perfect for someone coming out of Corporate America with strong sales/B2B skills.

• No Real Estate Needed – This business can be run from your home so you don’t have the added payment of rent that you may have with other types of businesses.

• Large Territories – Typically you’ll own an entire metropolitan area with this franchise. That is why the franchise fees are higher than you typically see for other franchises. You’ll be able to scale since you won’t be locked in to a small territory. 

Episode #39: You Can Make Money from Party Buses & Wine Tours?

In the podcast, Luke Bazely, CEO of Driver Seat, delves into key aspects of entrepreneurship and franchising.

He highlights the importance of in-depth conversations, the role of ego, and the necessity of spousal support in entrepreneurial journeys.

We also talk about the practicalities of starting a Driver Seat franchise, including startup costs and services offered.

Additionally, Bazely emphasizes the significance of a committed mindset, transparency in relationships, and the power of positive thinking to achieve success.

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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