PLUS: My convo with Crumbl co-founder Jason McGowan
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Good morning,
Today's Wolf Report covers a children's business franchise, and a fast-casual restaurant serving up asian cuisine. The children's business in particular just might be the best franchise I've seen that's under a $100K investment...
The below table represents the average P&L of 13 corporate owned Soccer Stars outlets in 2021
The Wolf's Take 🍟
This franchise is hot off the press, as they’ve only just begun franchising in the last month!
The franchisor is far from inexperienced however, as the brand was founded in 2000, and the owners of the brand today are Youth Athletes United. If you’re an avid listener of the Franchise Empires podcast, you’ll remember I spoke with the founders of YAU, Adam Geisler, and John Erlandson.
Adam and John have created a private equity backed platform that is a multi-brand franchisor. Each brand under the YAU umbrella is a children's business that uses sports programs to helps kids build character, stay active, and make friends.
Because they have multiple brands, they’ve been able to invest more resources into technology for franchisees that make operating the business more efficient. They also are able to help franchisees cross-sell customers between their synergistic but non-competitive brands.
The numbers on this brand's 13 corporate locations are clearly impressive - an $89K investment that can yield up to $615k in profit? Sign me up! But beyond that, the franchisor is run by two highly competent, passionate, and genuinely good guys!
Check this brand out if you want to run a good business and make an impact!
A fast casual restaurant offering healthy and clean asian recipes
Fees + Investment
Royalty: 5%
Brand Fund: 0%
Franchise Fee: $35,000
Initial Investment: $352,600 - $520,000
Financial Performance
The below tables represent financial performance from 2021 and 2019
The Wolf's Take 🍟
Rooster & Rice is a fast casual concept known for their signature dish “Khao Mun Gai”. In their own words, Khao Mun Gai represents the best of asian street food culture, and translates to “oily rice with chicken”.
The concept was developed by Chef Charoen and co-founder Bryan Lew in 2016. In 2018, they teamed up with the former founders of the food delivery app Caviar (acquired by tech giant Square in 2016), to help fine tune the model for franchising.
Their menu is 100% chicken and rice based, and they’re operating in what is an under-penetrated Asia QSR market. Other than Teriyaki Madness, there are few big names in this space.
While the business looks to have been bouncing back in 2021 after Covid, you can see from their numbers in 2019 that they were doing a very impressive ~$1.3M in average revenue.
If you’re looking for a fast-casual concept with few competitors, this looks like a great option!
Crumbl has taken over the nation since being founded in 2017. They have 626 stores open today, and will do over $1 billion in system-wide revenue this year.
In my conversation with Jason McGowan, we talk about it all:
If you're in the middle of seriously evaluating franchises right now, you're going to want to understand FDD's. Check out this guide!
The Silver Tsunami
Great thread covering the silver tsunami aka "the greatest wealth transfer in history" i.e. the 12M+ small businesses owned by baby boomers that will either be sold to new owners or shut down in the next decade!
For Franchise Sales & Marketing Professionals
A healthy reminder that the rule of "7 touch points" needed to make a sale does not apply to people buying and investing in a business!
THE WOLF OF EVERYTHING ELSE
BMW is investing $1.7B in the US to make electric vehicles 🚗
Circle K will be selling medical pot at gas stations next year 🌿
Google's autonomous taxi company Waymo is expanding to LA 🚕
Attention Philadelphia residents - your city has an avocado surplus! 🥑
Amazon is doing a "Black Friday" NFL game next year on Prime Video 🏈
That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. Thanks and see you next week!
