🍟 Thursday 3: Bill Miller | The DripBar | & More
🍟 Thursday 3: Bill Miller | The DripBar | & More
Lessons from a hedge fund legend + a hydration therapy bar
Welcome to The Wolf Report, a 2x/week email covering up & coming franchises & small business entrepreneur’s. If you’re reading this but haven’t subscribed, you can do so here:
Franchise wolves,
Hope everyone is staying safe out there with covid cases running rampant once again.
Today we have an interesting line up that includes learnings from college kids cleaning windows, to a hedge fund legend who made early bets on Bitcoin and Amazon.
And for our breakdown, I found an emerging brand in a category that is starting to heat up.
Let’s get to it! 👇
One Article:
Bill Miller: An Investor’s Evolution
This article discusses the journey of Bill Miller, a famous hedge fund manager who’s known for betting early and aggressively on Amazon, Dell, and Bitcoin.
There’s one quote in particular from him that resonated with me:
“Most people try to maximize the number of times they’re right. The real question is how much you make when you’re right.”
I’ve learned this mentality also applies to entrepreneurship. Many entrepreneur’s will double down triple down on opportunities once they see there’s proof of concept and develop massive conviction i.e. the franchisee who went all in on OrangeTheory.
You only have to be right once to change your life!
One Podcast:
Owned & Operated: The College Kids Running a $700,000 Business
Johnny Robinson aka @SqueegeeGod on Twitter, only just recently graduated college. But him and his best friend Sergio are the owners of a $700,000 window cleaning business that they started while they were sophomores.
Not only is window cleaning a business with crazy low startup costs that you can profit from immediately - there’s a way to build these local service businesses by leveraging subcontractors, so that you’re not tied up with labor (or cleaning the windows yourself).
I don’t think this is a business to go “all in” on, but it can be a stepping stone that provides semi-absentee cashflow while freeing up your time to explore other ventures.
One Breakdown: The DripBar
Fast Facts
Background
Founded in 2016, franchising since 2019
Based in Massachusetts; 7 units open as of 2021
Offers IV therapy services, as well as retail supplement products
Fees + Investment
Franchise Fee: $55,000
Royalty: 7% of gross sales
Brand Fund: 1% of gross sales
Initial Investment: $132K - $278K
Financial Performance
The following information is based on the performance of an affiliate location that first opened in 2015
Note: the gross revenue above only accounts for gross revenue from the sales of IV therapy services, not retail products. The location also operates in a 2,000 sq ft facility, whereas franchisees are expected to operate in 1,000 - 1,500 sq ft retail spaces.
The Wolf’s Take 🍟
This is the second IV therapy franchise I’ve covered - after covering Hydrate IV Bar in Week 6.
Both franchises are new (each of them founded in 2016), and the growth of IV bars in general is still in early innings from a national standpoint. The DripBar has a lower investment than Hydrate IV, topping out at $278k compared to $381k.
While it’s a small sample size with just 1 location, the business has grown steadily even through covid, and returns above $200k after accounting for all expenses.
I’m unsure of the longevity of this business as the medical community is unclear on the value they provide, but from a consumer standpoint there seems to be major buy-in wherever these locations are present!
Recent News
The Wolf Of Everything Else 🌎
Pinterest makes predictions for 2022 🔮
The world’s biggest startups visualized in 1 picture 🦄
A Microsoft Excel TikToker makes up to $100k per day 💰
This poor soul accidentally sold his NFT for $3k instead of $300k 😭
The picture of Matt Damon running through a rainy NYC with ice cream will never get old:
That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. If someone sent this your way and you haven’t subscribed yet, you can also do that below. Thanks and see you next week!
NOTICE REGARDING FRANCHISE INFORMATION
The Wolf of Franchises does NOT guarantee the financial performance of any franchise mentioned. The decision to purchase a licensed affiliate or franchise must be based on your own independent research. The Wolf of Franchises is not liable for any representation made by an affiliate, associate, marketing material, or Franchise Disclosure Document of a franchise with respect to real estate, financial, operations, or marketing performance of the business being acquired.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only, and any financial data is based upon information provided by franchises in their respective Franchise Disclosure Document. The offer of a franchise can only be made through the delivery of a franchise disclosure document, from a certified seller of the brand, which The Wolf of Franchises makes no claim to be. Do not consider any information here as a guarantee of financial performance. The Wolf of Franchises has no affiliation or relationship of any kind with any of the brands covered in this newsletter, but simply provides data that is publicly available online or in Franchise Disclosure Documents.
All data from Franchise Disclosure Document’s is based on past performance, and if you were to purchase a franchise covered in the Wolf of Franchises newsletter, there is absolutely no guarantee that your business will perform similarly to existing owners of said franchise.