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🍟 Week 26: A Taco Bell MBA

www.franchisebreakdowns.com

🍟 Week 26: A Taco Bell MBA

PLUS: Where the 7-Eleven slurpee was invented

Jan 24, 2022
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🍟 Week 26: A Taco Bell MBA

www.franchisebreakdowns.com

Welcome to the 573 new Wolf Pack members who have joined us since Thursday! Join 4,505 entrepreneurial minded folks by subscribing here:


Good morning,

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.

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: 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

  • British Swim School Franchise Website

  • British Swim School Launches in Indianapolis


Twitter Watch 👀

Twitter avatar for @franchisewolf
The Wolf of Franchises 🍟 @franchisewolf
Spoke with a business broker today. Told me of a franchisee who took out a $700k personally guaranteed loan for a location in Jan 2020. Covid crushed the biz & the person is financially ruined. Not all sunshine & rainbows. Will try to share a more balanced feed going forward
9:55 PM ∙ Jan 20, 2022
167Likes5Retweets

Follow @franchisewolf


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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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This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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🍟 Week 26: A Taco Bell MBA

www.franchisebreakdowns.com
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