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🍟 Week 24: Not Your Typical QSR Franchise

www.franchisebreakdowns.com

🍟 Week 24: Not Your Typical QSR Franchise

Plus: A legacy KFC franchisee sells out

Jan 10, 2022
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🍟 Week 24: Not Your Typical QSR Franchise

www.franchisebreakdowns.com

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:


Good morning,

After just crossing 1k newsletter subscribers last week, we’re now over 2k subscribers!

Welcome to all the new wolf pack members 🤝.

Today’s rundown includes:

  • Headlines: A 90 location KFC owner sells his locations

  • Franchise of the Week: Taco Bell

  • Breakdown: Clean Eatz - a hot QSR with multiple revenue streams

  • Twitter Watch: Chick-Fil-A crushes competitors on a per location basis

Let’s dive in 👇


Franchise Headlines

Fowler Foods sells stake in 90 KFC Locations

The Scoop

After 57 years of ownership of KFC, the Fowler Family sold stakes in their 90 KFC restaurants. They also (in a separate transaction) sold a Taco Bell restaurant.

As these deals typically go, the sale price was not disclosed, but it is widely speculated that the deal terms exceed $100 million.

Fowler Foods President Chris Fowler said,

“It was the right time. There are a lot of people out there that want to grow in this business and it’s their time.

The Wolf’s Take 🍟

This deal reminds me of the recent Pacific Bells sale to private equity. Both CEOs have been in the business for multiple decades, and both decided to cash out after some difficulty during covid.

Chris Fowler’s final quote says it all:

“I’m tired. This was the right time.”

Enjoy a well-deserved retirement, Chris! 🤝


More Headlines

Floyd MayWeather’s Fitness Franchise Goes Global 🥊
The undefeated boxing legend opened locations in Moscow & St. Petersburg

PureGym Launches First US Location 💪
The 500 unit chain from the UK requires no contractual commitment with its affordable model

QC Kinetix Gaining Traction 📈
With 0 franchise locations open in 2020, the brand had 59 clinics by the end of 2021.
*I covered QC Kinetix in Week 19


Franchise of the Week

Taco Bell 🌮

  • Founded: 1962

  • Units Open: 7,567

  • Investment Range: $576k - $3.4M

  • Average Revenue per Location: $1.6M

Did you know?

Taco Bell is named after it’s founder, Glen Bell, a California entrepreneur who owned a miniature golf course and a hot dog stand before striking gold with tacos. The very first tacos were just 19 cents!

Is there a brand you’re curious to know the financials of? Reply to this email with the name and I may include it in a future newsletter!


Breakdown: Clean Eatz

Fast Facts

Background

  • Founded in 2012; franchising since 2015

  • Based in North Carolina, 70 locations open & 70+ in development

  • A unique QSR that focuses on healthy foods & offers additional revenue streams via meal plans, grab N' go, and marketplace products

Fees + Investment

  • Royalty: 6% of gross sales

  • Brand Fund: 2% of gross sales

  • Franchise Fee: $49,500

  • Initial Investment: $116,000 - $585,000

Financial Performance

  • The below table represents information from 32 franchisees that operated for the full year 2020

The Wolf’s Take 🍟 

The numbers speak for themself - median EBITDA of $210k from an investment that will cost anywhere from $116k-$585k is a fantastic return.

I especially like this brand because they prioritize health for their customers, which is something that I think will become increasingly important for restaurants over the coming years.

They also aren’t just a traditional dine-in/take out restaurant, as they offer meal plan selections and pre-packaged food options via their “grab N’ go” program. This differentiates them from competitors, and gives them the ability to reach more customers than the average QSR!

Resources & Press

  • Clean Eatz Franchise Website

  • Clean Eats Looks to Reach 100 Locations in 2022


Twitter Watch 👀

Twitter avatar for @franchisewolf
The Wolf of Franchises 🍟 @franchisewolf
Yes I know owning a Chick-Fil-A is not a true ownership model…but their average unit volume is insane. IMAGINE IF THEY WERE OPEN ON SUNDAY’S 🤯
Image
4:13 PM ∙ Jan 9, 2022
28Likes1Retweet

Yes that $5.013M is the average annual revenue of a Chick-Fil-A 🤯

Follow @franchisewolf and get involved in the conversation!


The Wolf Of Everything Else 🌎

  • The NYT bought The Athletic for $550M 💵

  • 2022 Crypto Predictions from an 8 figure trader 🔮

  • John Legend sold his music catalog for an unknown amount 🎵

  • The US government has committed $10B to small businesses 🧳

  • Stay grindin’ to those with new years workout resolutions 👇

h/t Jerry News


That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback, or leave a comment. If someone sent this your way and you haven’t subscribed yet, you can also do that below. Thanks and see you next week!

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All Content in this email is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the email constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content in this email before making any decisions based on such information or other Content.

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🍟 Week 24: Not Your Typical QSR Franchise

www.franchisebreakdowns.com
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