🍟 Week 25: Gold in the Garage
PLUS: Planet Fitness buys out a franchisee for $800M
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Good morning,
Happy Martin Luther King Day everyone!
Hopefully you’ve been enjoying a long weekend courtesy of MLK.
Today’s rundown:
Headlines: Planet Fitness’s big move
Franchise of the Week: Wendy’s
Breakdown: Hello Garage - an impressive garage renovation biz
Let’s do it.
Franchise Headlines
Planet Fitness Buys Out Franchisee for $800M
The Scoop
Shane McGuinness was the very first Planet Fitness franchisee - he opened his first location in Altamonte Springs, Florida back in 2003.
Fast forward 19 years and he grew to 114 gyms across Florida, Alabama, Georgia, South Carolina and North Carolina.
Last week it was announced that Planet Fitness Corporate was acquiring all of his locations for a whopping $800 million 🤑.
The Wolf’s Take 🍟
I never tire of franchisees getting a payday. If you read last week’s Thursday 3, you may remember the quote “a life without commitment is a life where you can't take advantage of compounding curves”.
Multi-unit owners embody the commitment necessary for such large scale exits. Shane worked 19 years straight building just Planet Fitness locations, and was able to create generational wealth in that time!
More Headlines
Noodles & Co Sells 15 Locations to Warner Foods 🍜
The California franchisee committed to open 40 restaurants in the coming years
D1 Training Receives PE Investment*
Princeton Equity Group invested an undisclosed amount to fund national expansion
*I covered D1 Training in Week 9
Franchise of the Week
Wendy’s 🍔
Founded: 1969
Units Open: 5,881
Investment Range: $568k- $3.7M
Average Revenue per Location: $1,750,838
Did you know?
Wendy’s founder, Dave Thomas, worked for Colonel Sanders of KFC. Thomas' business savvy helped transform KFC locations that were struggling—and the money he got from selling his stake in KFC went toward his founding of Wendy's!
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: Hello Garage
Fast Facts
Background
Founded in 2019; franchising since 2020
Based out of Nebraska, 59 locations
A service franchise that specializes in garage renovations
Fees + Investment
Royalty: 6% of gross sales
Brand Fund: 2% of gross sales
Franchise Fee: $49,500
Initial Investment: $118,482 - $159,852
Financial Performance
The below table represents information an affiliate owned outlet in 2020:
The Wolf’s Take 🍟
I’ve recently spoken to a couple independent owners of garage renovation businesses - both were doing well and have found success utilizing sub-contractors.
Naturally, I wanted to see if there was a franchise in the sector - and low and behold I found Hello Garage.
Despite only franchising since 2020, it already has 59 locations operating. If franchisees are performing similar to what the affiliate location above is displaying, I would expect this brand to continue to grow at breakneck speed!
Resources & Press
Twitter Watch 👀
Follow @franchisewolf for more hard hitting memes 🤝
The Wolf Of Everything Else 🌎
Netflix raised it’s prices 🎥
Baby Shark hit 10 Billion views on YouTube 🦈
Mo Salah: the current king of world football ⚽
Mr. Beast was the top YouTuber of 2021, earning $54 million 🤯
Tesla is now accepting Dogecoin for its merchandise bc why not 🤷
The restaurant industry is ripe for technological innovation, and 800 GOº is shaking things up in the pizza world. It’s literally a robot that makes artisanal quality pizza and only takes up 40 sq feet. Less labor ✅ less real estate ✅ quality pizza ✅. Check out 800º GO here with its ultra space-efficient cooking technology and robotic automation*
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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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