Week 9: Cousins Maine Lobster & D1 Training
A shark tank franchise + a boutique fitness brand
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,
Greetings from Maine!
Today’s edition highlights Cousins Maine Lobster (when in Rome folks) and D1 Training.
Cousins Maine Lobster is a fast casual franchise known for it’s popular food trucks that serve lobster rolls and other lobster-based dishes. The founders appeared on ABC’s Shark Tank in 2012, and ultimately secured an investment from Barbara Corcoran: $55,000 in exchange for 15% equity. We’ll see the progress they’ve made since bringing on a shark!
D1 Training is a boutique fitness concept founded by Will Bartholomew. Will was a former teammate of Peyton Manning at the University of Tennessee, where he eventually became captain and led the Volunteers to a national championship. After suffering a career ending injury in the NFL, he learned there wasn’t a great place for him to recover, train hard, and optimize his performance. This is when his D1 journey started.
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.
Cousins Maine Lobster
Founded in 2011; franchising since 2014
37 locations open nationwide; 33 franchised
Serves lunch and dinner, primarily via food trucks
Fees + Investment
Royalty: 8% of gross sales
Brand Fund: 2% of gross sales
Franchise Fee: $38,500
Initial Investment: $191,550 - $501,000
The following table illustrates gross revenue of all franchised food trucks that were open for the full year 2020 (unless noted otherwise in the second column)
The Wolf’s Take 🍟
Frankly, I’m hungry for some lobster! There’s varying levels of success amongst the franchisees, but an average monthly sales systemwide of $116,676 during 2020 puts average annual revenue at $1.4M. Not too shabby for a single food truck, and you get to work with Barbara Corcoran!
Twitter Watch 👀
The most popular drive thru’s by state:
Founded in 2001, franchising since 2015
57 units as of 2021, all franchised
Provides 54 minute workouts meant for aspiring youth athletes and adults who want high intensity fitness training
Fees + Investment
Royalty: 7% of gross sales
Brand Fund: $250/month, can be raised to 2% of gross sales
Franchise Fee: $59,500
Initial Investment: $235,250 - $670,290
The below table presents gross revenues, royalties, marketing expenditures, part time labor, and a manager’s salary from 13 franchised locations for the full year 2019
The Wolf’s Take 🍟
Boutique fitness concepts are red hot, and D1 is no different. I don’t know the exact number, but this concept has exploded this past year and has far more units in development than the 57 that are currently open today. With an average location pulling in $270k after a majority of expenses are accounted for, it shows the potential to hit a 3:1 investment to profit ratio.
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.