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Week 12: Smash My Trash & Honest Abe Roofing
Junk removal brand + a roofing business
Welcome to Franchise Breakdowns, a weekly email covering up & coming franchises to help you find the next big brand. If you’re reading this but haven’t subscribed, you can do so here:
To Franchise Owners,
Thank you to those who filled out the 90 second survey last week, I got some great insight and look forward to compiling more responses!
Today I’m covering Smash My Trash and Honest Abe Roofing. Smash My Trash is a junk removal franchise that’s exploded onto the scene in the last 5 years, while Honest Abe is a roofing + gutter cleaning franchise. Both brands are in the niche I love discovering - unsexy businesses that have great unit economics!
DISCLAIMER: DO NOT CONSIDER ANYTHING WRITTEN BELOW AS INVESTMENT ADVICE. IF YOU DECIDE TO PURCHASE A FRANCHISE, YOU MUST DO YOUR OWN RESEARCH, AND REALIZE ANY INVESTMENT MAY GO TO $0.00.
Smash My Trash
Founded in 2016, franchising since 2018
163 units open as of 2021
Fees + Investment
Royalty: 8% of gross sales
Brand Fund: 1% of gross sales
Franchise Fee: $49,500
Initial Investment: $322,650 - $395,500
Below is a statement of income from the full year 2019 and for the first 4 months of 2020 for a franchisee in Houston
The Wolf’s Take 🍟
$601,039 of net income off of $1,388,523 in revenue is an insane margin…not sure what else needs to be said!
Honest Abe Roofing
Founded in 2007, franchising since 2017
28 units of 2021
Fees + Investment
Royalty: 5% of gross sales
Brand Fund: 2% of gross sales
Franchise Fee: $35,000
Initial Investment: $98,471 - $210,285
The below information is from 2 Honest Abe franchises that were open for the full year 2019
The Wolf’s Take 🍟
Service franchises are of course a different animal than retail franchises, but the average gross revenue for Honest Abe is impressive, albeit a small sample size. In the last year they’ve gone from 7 franchises to 27 franchises, suggesting that their in full growth mode!
That’s it for this week’s Franchise Breakdowns. 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!
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 and/or projections is clearly 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, it is entirely possible that you lose your entire investment and go bankrupt.