Week 8: Rise Southern Biscuits & Mighty Dog Roofing
QSR style brunch + a roofing franchise that is on FIRE
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To franchise owners,
Today’s edition highlights Rise Southern Biscuits and Mighty Dog Roofing (the first service franchise to be covered in the newsletter)
Rise Southern Biscuits was started in 2012 by a CIA trained chef, and has been named to QSR’s 40/40 List for 2021: America’s Hottest Startup Fast Casuals. They serve breakfast and lunch, offering up tasty breakfast sandwiches on biscuits, donut options, and are known for their chicken as well. It’s also a waitstaff free restaurant as they use an efficient service line to serve customers. This innovative fast casual restaurant also shuts down by 3pm each day, which could be attractive for solo or multi-unit operators.
Mighty Dog Roofing offers commercial and residential roof repairs, as well as gutter cleaning, storm damage, and skylight installation/repair. They started franchising halfway through 2020, and sold 100 territories within the first 6 months. After I looked into them further, they have a fantastic executive team that includes a founder of a 225+ territory franchise, and multiple multi-unit franchisees of other brands. The model involves offering strong lead gen for franchisees while primarily subcontracting out the labor. Given the executive team experience and quick unit growth thus far, they’re a great fit to be the first service brand I’ve analyzed.
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.
Rise Southern Biscuits
Founded in 2012 in Durham, NC; franchising since 2014
17 locations open nationwide; 14 franchised
Serves breakfast, lunch, and brunch in a QSR fashion
Fees + Investment
Royalty: 6% of gross sales
Brand Fund: 2% right now, but can be up to 1.5% of gross sales
Franchise Fee: $35,000
Initial Investment: $355,600 - $524,000
The following table illustrates gross revenue and expense information for 3 affiliate owned restaurants in 2019
The following table illustrates gross revenue information for franchisee owned restaurants during the 2019 calendar year
The Wolf’s Take 🍟
Location #1 of the affiliate location is what caught my attention for this brand, and then franchisee revenues from the second table also showed promise, specifically location 1, 5, 6, & 7. To me the brand is unique given it’s serving up traditional southern food and donuts, but does so in a fast-casual way. Earning $180k-$200k in EBITDA off of what is on the high end a $524k investment is a great return for business owners.
Twitter Watch 👀
My thread on some crazy marketing stunts franchises have done over the years:
Mighty Dog Roofing
Founded in 2018, franchising since November 2020
100+ territories sold
Fees + Investment
Royalty: 6.5% of gross sales
Brand Fund: 2% of gross sales
Franchise Fee: $59,500
Initial Investment: $200,335 - $303,035
Franchise Fee Per Territory
The below table contains data from two affiliate outlets for the full year 2019
Outlet A operates in an area containing 4 territories, while Outlet B operates in an area containing 3 territories
The Wolf’s Take 🍟
The above numbers don’t take into account expenses such as royalties, the national marketing fund, call center fee, etc. But regardless, they offer strong return potential based on the initial investment. Something to keep in mind as well is the number of territories required to reach certain revenue thresholds. As I listed above, the initial franchise fee of $59,500 is for one “territory”, but yet Outlet A operates in a 4 territory market, which would add up to $159,500 in franchise fees. Not necessarily a dealbreaker if you believe in Mighty Dog’s subcontracting heavy model, but must be factored in!
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.