Week 15: Diesel Barbershop
A haircut franchise + celeb athletes making franchise moves
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Gm franchise fans,
It was marathon day in NYC yesterday - the amount of positive energy and support that people show on this day is pretty incredible to witness. If running a marathon isn’t for you, attending one is still an awesome experience!
Today’s edition:
Cannabis franchises heating up
Tim Tebow & Shaq Making Franchise Moves
Breakdown: Diesel Barbershop out of San Antonio, Texas
See you at the bottom!
Franchise Headlines
Cannabis Consumption Lounge Plans National Expansion
Bud’s Place, a startup franchisor of social cannabis consumption lounges, has partnered with a company called Status Group International to accelerate Bud’s growth.
Bud’s Place offers a safe & clean place to smoke and enjoy yourself, and has food and entertainment the same way a bar does for consumers of alcohol.
This story signals a trend that is in early innings but I expect to be major winners in over the next decade: cannabis businesses. Recreational marijuana use is steadily gaining legality across the country, and as it does, franchises like Bud’s place will only see increased demand.
More Headlines
Whopper with a side of Bitcoin?
Burger King and Robinhood teamed up in a crypto giveaway
Tim Tebow Partners With Clean Juice as Brand Ambassador
The former NFL player is an equity investor and will open new corporate restaurants
Shaquille O’Neal’s Big Chicken Franchise Signs Multi-Unit Deal
Shaq’s brand will be expanding to Seattle via experienced restauranteer’s
Breakdown: Diesel Barbershop
Fast Facts
Background
Founded in 2011, franchising since 2017
Based in San Antonio, Texas; 30 units open as of 2021
A full service barbershop that gives you the classic garage feel for hair and beard needs
Fees + Investment
Royalty: 7.5% of gross revenue
Brand Fund: 1% of gross revenue
Franchise Fee: $40,000
Initial Investment: $336,500 - $413,500
Financial Performance
The following data is from a table that illustrates historical data from 5-6 affiliate locations. I have snipped the table to show the average total revenue and average net profit for each locations 1st-4th year of operations
The Wolf’s Take 🍟
Diesel shows healthy growth in revenue and profits from year 1 through year 4 for a handful of their affiliate locations. Their oldest store which has been open 8 years as of 2020, shows the highest revenue by a margin of $250k.
Barbershops - outside of a global pandemic - are typically very dependable businesses. Diesel looks to be a more unique brand with its vintage theme, especially when compared to the generic Supercuts/ Sports Clips/Great Clips franchises.
It’s early on in their growth with 30+ units open so if the haircare industry is of interest this is a good brand to look into!
Recent Press
Twitter Watch 👀
Share your thoughts on Twitter!
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!
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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.
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