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.

There’s two character traits that I’ve learned are key to your long term success, particularly in business…

I say long term success, because I’ve seen individuals succeed in one thing and then fail in another.

I also got a taste of learning this lesson when I got cocky buying our second franchise. Thinking because I had quick success in our first one, that I knew everything going into the second one.

That’s where I made a bunch of mistakes and took losses in the short term, before I got humbled.

The two traits are:

1. Being coachable

2. Being open minded

I recently had a conversation with a guy that was asking for help- but had an answer for everything and seemed to think he had all the answers because he had been successful before.

He was also very adamant about doing things his way, even though he said he was open minded.

I definitely recognized myself in him, or at least the older me.

He was 31, I’m 36 and sometimes just some extra years of painful experiences will humble you.

I hope it doesn’t take that for you, but just remember- you don’t always have to be right and it’s okay to ask for help and check your ego at the door.

Tariq

CEO & Founder, Franchise Empire

Today, in 5 minutes or less:

✔ Insulation franchise showing $17million in annual sales

✔ An attractive resale with $935k in 2023 sales

✔ 1 Client Case study of someone just like you

✔ Conversation with the $3Billion man on 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 Floor Coverings International, a leader in the floor remodeling industry. Started in 1988, Floor Coverings International is a well-established leader in the industry with over 250 locations throughout the U.S. and Canada. Franchise owners provide custom flooring solutions to both residential and commercial customers, including but not limited to wood, tile, carpet, vinyl and laminate options.

• Asking price of $537,500

• 2023 Revenue of $935,053

• Average job size of $12,000

• Close rate of 75%

• Location opened in 2014; owners are retiring

• Great installer relationships established (subcontractors)

• Mobile showroom (van) included in sale with samples and other equipment

• Highly sought after market! Naples is a great market for this franchise, and the territory size for this resale is sizable.

• According to the FDD, the top 50% of franchise owners have an AUV of $1.8M! There appears to be an opportunity for growth in this market.

• Our team has helped multiple clients purchase a Floor Coverings International franchise. It’s an exceptional, proven brand with a strong Item 19. The average investment for a new franchise unit is around $250K, so this is a great opportunity to hit the ground running with an already established customer-base and team.

Nate was feeling undervalued and work, and wanted to see if franchising could help him make the leap to entrepreneurship.

He had no idea what type of franchises to look at, and our team wound up helping him secure the right franchise.

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.

• Established in 1977, and incorporated in 1985 in Eastlake, OH 

• Began franchising in 2006

• Acquired by HS Group Holding Company (Threshold Brands) in Dec 2020

• Corporate Owned Territories: 1

• Franchise Units: 100

• Franchise Fee: $55,000

• Royalty: 5%

• National Marketing Fee: 2%

• Total Investment Range: $265,500 – $410,000

• Term: 10 years
  **Numbers according to their FDD released on May 1, 2024.

USA Insulation offers and sells an array of insulation products, including proprietary injection foam, polyurethane spray foam insulation, blown fiberglass insulation, rolled/batten fiberglass insulation and more. First, the rep will do an energy assessment and then offer solutions for the homeowner. Approximately 65% of homes are under-insulated and territories are based on the amount of homes built before 1990. You’ll start with one retro-fitted insulation truck and a crew and add more trucks/crews as your business grows. 

Below tables taken from the USA Insulation 2024 Franchise Disclosure Document – Item 19, page 45. They disclose sales for 47 locations individually. The highest grossing location was $17,373,280 with 14 territories and the second highest was $7,480,651 with 4 territories. Lowest was $171,816.

Benefits for the Franchisee:

• In-house Manufacturing – Not only do they control the complete product supply chain (no third parties), but they also keep all of their operations in America. The state-of-the-art manufacturing facility is located near the headquarters in Cleveland, Ohio.

• Less Competition – Unlike other home services and home improvement industries, the insulation market isn’t as saturated as other more competitive businesses like electrical, plumbing, and HVAC. There is no strong national chain for the residential retrofit insulation market, and the vast majority of competition is made up of local mom n’ pop shops that lack the structure, systems, and processes that a great franchise offers.

• Superior Sales Process – USA uses a technology based sales process that is interactive and helps to educate the homeowner on the potential benefits of re-insulating their home. This helps to increase your sales conversion rate and those that have a strong sales background will do well.

• Energy Savings for Customers – The customer is often reaching out due to discomfort in their home – too hot in the summer months and too cold in the winter. In addition to solving their comfort needs, USA also helps customers save on energy costs and helps preserve the HVAC units in their homes.

Episode #54: The Brink of Bankruptcy to $3B in Funding

In this episode I got the chance to sit down with Jeremy Ames, the CEO of Guidant Financial which is one of the biggest funding providers for franchise buyers and small businesses in general.

I got the chance to pick Jeremy’s brain on how to build successful businesses, he’s done it multiple times now and has been a highly effective CEO who built a business from scratch with his cofounder.

We also talked about the benefit of learning from people who are further ahead than you, especially in business. This episode could be a total gamechanger for you…

So sit back, take some notes, and enjoy the show.

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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