Week 16: Center Point Medicine
A different kind of franchise + a BIG acquisition
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Gm franchise fans,
Big news just dropped this morning, with Restaurant Brands International announcing that they’ve acquired Firehouse Subs for $1 Billion in cash.
Stories like these are a testament to the power of the franchise model. You can be an owner of a single sub shop, but through franchising, that sub shop can become a billion dollar business!
The details of that story (and more), below! 👇
Restaurant Brands International Acquires Firehouse Subs
Restaurant brands international, the owner of Burger King, Popeyes, and Tim Horton’s, is acquiring Firehouse Subs for a $1 Billion (yes, billion with a B) all cash transaction. With 1,200 U.S. stores, the acquisition boost’s RBI’s restaurant count to about 29,000.
Firehouse Subs is projecting $50M in EBITDA this year, and has a loyalty program with about 3.5M subscribers.
What does the acquisition mean for Firehouse Subs?
In one word? Expansion.
Between Tim Horton’s, Popeyes, & Burger King, RBI is operating 17,000 restaurants outside of the U.S. Given RBI’s experience for international development, it’s safe to say we can expect Firehouse Subs to enter new countries very soon.
Read the full story here.
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Quiznos still exists, and they want you to know about it!
Xponential Fitness Partners with LA Fitness
LA Fitness will allow Xponential brands to build units inside their gyms
From The Barracks to BBQ
How a marine’s military experience help him run 27 stores for Sonny’s BBQ
Breakdown: Center Point Medicine
Founded in 2014
Based in La Jolla, California; 2 units open as of 2021
A pediatric facility focused on alleviating mental health conditions via counseling & hypnotherapy
Fees + Investment
Royalty: $347 per week per provider
Brand Fund: $50 per week
Franchise Fee: $39,000
Initial Investment: $98,327 - $189,250
The following data is from the Center Point Medicine location based in La Jolla, California, and shows revenue’s from it’s first full 6 calendar years of operation
The Wolf’s Take 🍟
Center Point Medicine not the typical franchise reported on in this newsletter, but part of my goal is to uncover niche brands that you won’t find anywhere else.
And after seeing the sales : investment ratio, it shows potential to build to a very healthy annual return. From their website, it’s evident that they contract with many insurance providers so that patients don’t have to pay 100% out of pocket. This lines up with their stated values of “making mental mental health more accessible for children”.
Lastly, because I’m sure it’s on your mind - can you own this without being a doctor? Yes, but with some caveats. Those caveats are that there’s a specific business structure you’d have to set up your franchise under to ensure you are compliant with your state’s laws - and you would then of course have to hire licensed medical professionals to operate the practice.
Twitter Watch 👀
Did a deep dive on emerging pizza franchises last week. Follow @franchisewolf to see tweets like this in real time!
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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