Thread by @franchisewolf

Service businesses are probably the only business today where you can have a REAL competitive advantage just by having a modern website and answering the phone.

Here's a breakdown on 10 of the fastest growing service franchises, from roofing companies to lawn care 👇

Before the breakdowns, it's worth highlighting service biz owners like @sweatystartup @SullyBusiness @SqueegeeGod @SamtLeslie @phil_harp @LiamKircher who started their businesses for much less than the franchises you'll see - give them a follow to see how they did it!

Investment ranges for service franchises assume many costs that you may not shell out for if you went on your own - but regardless they're a far different animal than a brick/mortar biz.

Bc answering the phone is a differentiator, think extra hard if a franchise is worth the $..

1. Honest Abe Roofing

• Royalty: 5% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $99k - $211k
• Average gross revenue: $2,886,706*

*This number is based on 2 franchisees in 2019

2. Mighty Dog Roofing

• Royalty: 6.5% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $201k - $304k
• Average EBITDA: $351,096*

*This # is based on 2 affiliate outlets in 2019. 1 outlet operated 4 territories, while another operated 3 territories

3. Weed Man

• Royalty: $6k-$12k/vehicle/yr
• Brand Fund: 20% of royalty fee
• Initial investment: $69.5k - $86k
• Average Gross Sales/Vehicle: $209,962*
• Average Gross Sales/Franchisee: $1,254,433*

*This # is based on 118 franchisees in 2020

4. Shine Window Care

• Royalty: 7% of gross rev
• Brand Fund: Currently 1% of gross rev
• Initial investment: $107k - $182k
• Average net profit before royalties: $99,257*

*This number is based on 17 franchisees in 2020

5. Color World House Painting

• Royalty: 6% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $97k - 192k
• Average gross revenue: $491,038*

*This # is based on 11 franchisees in 2020

6. 360 Painting

• Royalty: 6% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $104k - $148k
• Average gross revenue: $433,123*

*This # is based on 64 territories in 2020

7. Five Star Bath Solutions

• Royalty: 5-6% of gross sales
• Brand Fund: 1-2% of gross sales
• Initial investment: $110k - $207k
• Average Annual Sales: $836,112*

*This # is based on 19 franchisees in 2020

8. USA Insulation

• Royalty: 5% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $171k - $346k
• Average Annual Sales: $2,037,826*

*This # is based on 14 franchisees and one company owned outlet in 2019

9. Spring Green Lawn Care

• Royalty: 8-10% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $83k - $105k
• Average Gross Sales/Single Territory Owner: $469k*
• Average Gross Sales/Multi-Territory Owner: $1,108,457*

*Based on 76 franchisees in 2020

10. Two Maids & A Mop

• Royalty: 6% of gross sales
• Brand Fund: 2% of gross sales
• Initial investment: $65k - $145k
• Top quintile avg gross rev: $748,398*
• Bottom quintile avg gross rev: $214,798**

*Based on 10 franchisees in 2020
**Based on 9 franchisees in 2020

That's it for my 10 fast growing service franchises.

If you liked this thread and want more insight into franchises and the entrepreneurs behind them, give me a follow @franchisewolf

You can also subscribe to my weekly newsletter where I analyze 1 emerging franchise brand, & highlight recent M&A + growth news in the world of franchising:

thewolfoffranchises.substack.com

I'll be doing a thread every day this week.

Tomorrow I'll be covering boutique fitness franchises 👀

If you read this and are thinking "franchises are stupid" read this thread about why why entrepreneur's making $1M+/year chose to buy franchises:

https://twitter.com/franchisewolf/status/1451233502184316930?s=20

Disclaimer:

https://twitter.com/franchisewolf/status/1455233359899250688?s=20

Thanks for reading 🤝
~The Wolf

also @sergiosilesky, sorry my man 🤝