I love businesses in the children's services niche because they typically cost far less $ to start, but can still yield great returns at scale.

Can be a great entry way to entrepreneurship.

Here's my top 5 children's services franchises 👇
The Coder School

• Founded: 2014
• Locations: 51
• Investment: $75K - $151K
• Average EBITDA: $82,176

*This number is based on 21 franchises in 2019 Image
Soccer Shots

• Founded: 1997
• Locations: 248
• Investment: $43k - $63k
• Average EBITDA: $46,668

*This number is based on 49 SINGLE-territory franchise owners in 2019 Image
British Swim School

• Founded: 1981
• Locations: 113
• Investment: $94K - $126K
• Avg Net Operating Income: $58,954

*This number is based on 77 franchisee income statements in 2019 Image
i9 Sports

• Founded: 2002
• Locations: 172
• Investment: $60K - $70K
• Avg Gross Revenue: $377,144

*This # is based on 130 franchised locations open & operating for more than 12 months as of the end of 2019 Image
The Little Gym

• Founded: 1992
• Locations: 358
• Investment: $223K - $467K
• Avg Gross Revenue: $703,431

*This number is based on 47 locations in 2019 Image
The top success story I've seen in this niche owns close to 20 locations of a tutor franchise & takes home over $1M annually.

He has a COO hired so now only works about 10-15 hours/week. Took him 10 years to get to this point.

Getting rich "slowly" isn't sexy, but it works.
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 email below:
thewolfoffranchises.substack.com
TL;DR

• Coder School Avg EBITDA: $82K
• Soccer Shots Avg EBITDA: $46K
• i9 Sports: Avg Gross Rev: $377k
• The Little Gym Avg Gross Rev: $703k
• British Swim School Avg Net Op Income: $58k

• • •

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More from @franchisewolf

17 Nov
Per CNBC, about 1/2 of Americans expect to retire in debt.

Yet our education system still focuses more on lattice multiplication than personal finance topics like FICO scores, student loans, 401k's, etc.

@MorningBrew can help fix this by creating a tutoring franchise...👇🧵
A lot of people (like @APompliano) have been beating this drum for awhile that there needs to be major improvements in financial education.

A tutoring franchise that teaches teens the basics of personal finance would be a great solution to this problem.
Online courses may be all the rage, but there's positive aspects of IRL classes that you can't get in a MasterClass:

-Intimate 1v1 support
-Real time question asking
-Forced attendance (parents drop kids off)
-Call outs from teachers when you aren't listening
Read 11 tweets
16 Nov
Yesterday, Restaurant Brands International announced they acquired Firehouse Subs for $1 Billion, despite Firehouse Subs reporting just $50M in adjusted EBITDA for 2021.

Here's why paying 20x EBITDA makes sense, & shows that RBI is playing the long game👇
First let's note that RBI currently owns Tim Hortons, Burger King, & Popeyes.

That's 2 pure-play fast food brands, and a coffee QSR.

Firehouse Subs is a QSR with fresh sandwiches that appeal to a customer base RBI currently isn't hitting with its existing portfolio. Image
Secondly - take a look at the dates these brands got started. Surprised at how old they are?

Don't be.

For 99% of franchises, scale + brand development take decades (most aren't F45).

Remember this if you're evaluating franchises that only started in the last few years. Image
Read 12 tweets
14 Nov
Celebrities love franchises, primarily bc it's an easy way to diversify and preserve their wealth.

Out of the 9 below, @SHAQ in particular has built the biggest franchise empire 👇
17 Auntie Ann's, 155 Five Guys, forty 24-Hour fitness gyms, as well as being the founder of Big Chicken Image
@PatrickMahomes: Opening 30 Whataburger's in the Kansas City area. Image
Read 10 tweets
10 Nov
Pizza businesses have performed well through the pandemic and any economic climate.

I've done some digging on smaller pizza franchises to see which ones show impressive unit economics.

These 6 brands may not be Dominos, but they offer similar returns to the business owners 👇
First - let's set a bench mark by looking at Dominos #'s:

The initial investment is $152k - $668k, with average weekly unit sales of 5,000+ franchised locations coming in at $22,648.

This means the average annual revenue is $1,177,696 per location.
Westside Pizza

This business, which started in Boise, Idaho has 36 locations nationwide, and a lower investment range of $129k -$398k.

In 2020 their locations had an average gross revenue of $795,120
Read 10 tweets
8 Nov
Crumbl Cookies opened their first location in Logan, Utah in October 2017.

Today they have 260 stores operating in 36 states, and an average unit volume of $1.27M.

5 high level thoughts on what this franchise does really well (and what other brands should be doing too) 👇
1. Product

The founders A/B tested their way to the perfect chocolate chip cookie by using different ingredients, & asking people at local gas stations "which do you like better?"

After spending thousands of $$$ on recipes, they landed on a cookie they feel is truly special.
2. Branding

Crumbl uses iconic pink packaging for every take-out + delivery order.

The boxes are designed to fit each cookie side by side, whether in a 4-pack, 6-pack, or 12-pack box.

The unique shape + signature pink coloring make it recognizable and Instagrammable.
Read 8 tweets
8 Nov
Tomorrow morning I'll be sending the 15th edition of my newsletter that breaks down franchise brands and the entrepreneur's behind them.

Here's 6 of my favorite brands that have been covered so far:
1. The Coder School:

• $73k-$151k to start
• Average EBITDA per location of $82,176 Image
2. Crumbl

• $228k - $568k to start
• Average net profit per location of $284,047 Image
Read 9 tweets

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