Thread by @acouplecents

We chose to buy a fence franchise for $700k (all cash), underwriting:

- 18 month payback
- 3.0x 5yr MOIC
- 70%+ "IRR", although don't think that's as applicable here
- High confidence in brand & operations

Here's why we chose it 🧵👇

We have a preference for "home services" + Repair & Remodel (R&R) bc:

1) Regardless of recession, consumers will have to do maintenance on their homes/buildings.

2) Remodel/improvement on existing homes should stay strong w/ the housing mkt locked up & affordability problems

We are actively looking for home services #SMB, but also like a strong franchise. They can give the operator a proven model, brand equity, speed to market, off-the-shelf playbook, & scaled supply chain.

Credit: @franchisewolf, gotta check him/her out!

We've looked at a lot of meh franchises. Most aren't home services (no, I don't want to buy a restaurant). And many weren't compelling brands or scalable (we're not just buying a job).

But when we found Superior Fence & Rail, it was VERY compelling.

SF&R had the following:
✅ Serving middle-class R&R mkt, against fragmented mom&pops
✅ Strong brand with 50+ proven locations
✅ Franchisees doing >$8M in sales (scalable)
✅ Cost of $200k-$1M
✅ 100-200%+ Annual ROIs

I have NDA, but this isn't far off bit.ly/3W8EB8L

After spending 2 days at HQ with the team, we were even more impressed:
- Highly organized, veteran-oriented mgmt team
- Proprietary fence software, competing against paper
- Amazing training, resources and playbook
- Sophisticated support w/ marketing, back office

We moved QUICK, but most top markets were already built/bought. But we were lucky enough to get mkts we love: RI, SE Mass, & Albany NY.

I'll be building in public as much as possible. If you liked this:
1. Like & RT this
2. Follow me here!
3. Follow the YT for deeper look

https://twitter.com/1246450126681509889/status/1604846263014658048