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.
Want to keep up with our latest newsletters?
Here’s an interesting way to think about owning a franchise…
A lot of people we talk to initially feel stuck on whether they should start a franchise, buy a business or just start a business from scratch.
Here’s an interesting perspective…
You can do them all.
You can use the “stepping stone” strategy with owning a franchise.
Operate one solely for the purpose of then selling it within a couple of years so you can eventually own the business that you really want to own!
For me I’ve wanted to make YouTube videos and have an online business helping people since 2006.
I failed with 9 businesses, and then owning a franchise taught me how to run a business and then gave me the confidence and blueprint on how to start something from scratch.
I learned a TON about processes, hiring and firing, marketing, leases…all kinds of stuff I wouldn’t have learned in that short amount of time on my own.
You just use franchising as a “stepping stone” until your next thing…
Something to think about
Tariq
CEO & Founder, Franchise Empire
Today, in 5 minutes or less:
✔ 1 resale franchise that is doing $156,000 in Cash Flow*
✔ Interesting Franchise that averages sales of $1.1M*
✔ A client who bought a resale painting franchise
✔ Latest episode of The Franchise Empire Show with a Franchise Founder
Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners
FEATURED RESALE
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 CertaPro Painters. Established in 1992, CertaPro has nearly 500 franchise units throughout the United States and Canada. They are the largest residential and commercial painting franchise in North America. Entrepreneur Magazine ranks the franchise #1 overall in the home services industry.
Lubbock, TX
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Started in 2016
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Asking price of $475,000
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Last 12 months revenue of $1.3M
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Cash flow of $156,800
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Assets and team information provided upon request
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Owner is starting a new business and wants to focus on the new venture
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Sales and subcontractors in place
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Assets and team information provided upon request
Franchise Empire’s Take:
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The CertaPro franchise system boasts a strong Item 19. According to the FDD, the AUV for franchise locations open at least 12 months is $2.08M. Based on the current sales, there appears to be an opportunity to increase sales within the existing market.
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CertaPro is one of the strongest home services franchises in the industry. They have a strong, hands-on training (five weeks) and support program for their zees, leading to a 90%+ retention rate amongst their network over the past 3 years.
Curious to learn more about this particular franchise resale, or other resales available in your area?
CLIENT CASE STUDY
We recently helped Liz buy a resale of this franchise, and she’s very happy and excited. She had worked with another Franchise Broker before deciding to solely work with us, and she’s let us know how happy she is that she did!
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.
FRANCHISE OF THE MONTH
History:
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Originally started in 1999 by brothers Ken and Ryan Parsons.
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They started franchising in 2015.
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Acquired by EHC Holding Company which is controlled by The Riverside Company.
Numbers:
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Corporate Owned Territories: 1
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Franchise Units: 110
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Franchise Fee: $49,500
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Royalty: 6%
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National Marketing Fee: 2%
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Total Investment Range: $143,750 – $205,000
**Numbers according to their FDD released on April 22, 2024.
Description:
The Brothers That Just do Gutters provides gutter installation, maintenance, cleaning, and repair services and products to residential homes. Gutters are a need, NOT a want – gutters are not the newest fad or trend, they are a necessary product and service needed on almost all homes. If you do not have gutters or properly functioning gutters, the damage to your home can be catastrophic.
The owner does sales and manages the installers for the first 1-3 months. They order material, conduct meetings, network with other businesses, recruit and ensure their installers follow the training program. When going from 1-2 crews, owners hire a sales rep and focus on growing the team and the brand.
Financial Data:
Below tables taken from the Brothers That Just Do Gutters 2024 Franchise Disclosure Document – Item 19. This item 19 is 83 pages long!!!! Yes, 83… Longest I’ve ever seen. A table like Table 6 below is available for every single location. There does seem to be a theme of negative sales growth from 2022 to 2023.
Benefits for the Franchisee:
- Recurring Revenue – Most gutter systems require maintenance. If there is at least 1 tree nearby clients will need at least 1 gutter cleaning per year. Most clients need 2-4 cleanings per year and are willing to sign up for recurring gutter cleanings.
- Contractors/Commercial Opportunities – Roofers, builders, and remodelers… all need gutters installed with every project and provide endless streams of jobs. In addition are property management companies, HOAs, condo associations, and more. There are enormous amounts of clients who make multiple gutter purchasing decisions per year.
- Simple Model – Home based, quick to open and can operate with just a few employees.
- Corporate Marketing & Call Center – Dedicated marketing team focused on getting you lots of leads with a three-phase marketing approach and the call center boasts a 80-90% lead conversion rate.
To see if this franchise is available in your territory
OR
Check the availability of ALL franchises in your area
Episode #50: How This Franchise Saved Businesses $650 MILLION
In this value-packed episode I sat down with Dennis Schooley who founded Schooley Mitchell over 25 years ago.
We talked about how they’ve saved businesses over $650 million dollars…
How to start a business that you’re passionate about and makes money…
Plus what makes the difference between the top 10% of franchisees and everyone else?
Sit back, take some notes, and enjoy the show!
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