🍟 Week 26: A Taco Bell MBA
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I hope you all had a stellar weekend! If you’re a football fan, that may have been the best weekend of games of all time ( Bills fans - I feel for you right now).
Let’s dive right in, starting with Taco Bell’s Business School announcement👇
Franchise Headlines
Taco Bell Launches Business School
The Scoop
Taco Bell is launching a business school of sorts, via a six-week bootcamp style education program designed to teach employees the basics of franchise ownership.
To accomplish this, Yum Brands (Taco Bell’s parent company) has partnered with the University of Louisville and the Yum Center for Global Franchise Excellence, an education program that Yum Brands launched in 2021.
Though the idea is not “fully baked”, they hope to transition employees from the program to earning into ownership of corporate owned Taco Bell locations.
The Wolf’s Take 🍟
I’m a big fan of this initiative from Taco Bell, and hope that Yum Brands expands it to include their other brands such as KFC and Pizza Hut.
The biggest barrier to entry for franchise ownership is capital, and this program provides an alternate path for those who don’t have the resources to purchase a franchise. Anything that helps trained operators earn into ownership is a W in my mind.
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Franchise of the Week
7-Eleven
Founded: 1927
Units Open: 77,346
Investment Range: $$70K - $1.2M
Average Revenue per Location: $1.4M
Did you know?
The slurpee was invented at a Dairy Queen! In the late 1950’s a Dairy Queen owners soda fountain broke, so he started putting his bottled soda in the freezer to get them cold. After serving bottles that were in the freezer a little too long, customers came back specifically requesting the half frozen sodas. The drink concept was eventually licensed to 7-Eleven in 1965.
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Breakdown: British Swim School
Fast Facts
Background
Founded in 1981; franchising since 2011
Based in Virginia, 113 units open
Swimming lessons for ages 3 months and older
Fees + Investment
Royalty: 10% of gross sales
Brand Fund: 2% of gross sales
Franchise Fee: $39,500
Initial Investment: $93,700 - $125,850
Financial Performance
The below table is from 77 territories in 2019
The Wolf’s Take 🍟
A median net operating income of $63k off of a $94k-$126k investment is a solid annual return per territory. To earn a more meaningful income you’d of course want to operate multiple territories, but as a lower cost and low overhead franchise, British Swim School could be a good entryway to business ownership.
Resources & Press
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