Welcome, Empire Builder!

Hey Empire Builders,

Welcome to this week’s Franchise Empire Newsletter, where we share specific franchise opportunities that we think are interesting, and examples of everyday folks building their empires.

—-------------------

Want to keep up with our latest newsletters?

Subscribe Here

—-------------------

Well the irony in this newsletter might leave you scratching your head a bit.

After owning multiple QSR franchises …

(ok don’t you hate when people throw out random acronyms as if everyone is supposed to automatically know what the hell it means??

Don’t worry I wasn’t going to do you dirty like that.)

QSR stands for Quick Service Restaurant. Think Chiptole, McDonalds, Starbucks, anything that’s well…quick service.

Here’s why I tell people not to buy food franchises:

For starter’s it’s just a tough business overall.

There are typically high startup costs, and low profit margins.

You’re open more than 360 days a year typically 12 hours a day or longer.

The employee turnover is insanely high.

Should I say more?

The irony is that it’s estimated that 1 out of 4 franchises is in the food industry!

Also, let’s face it..when you hear the word franchise, what are the businesses and brands that first pop in your head?

See.

Despite that, in this newsletter, the team decided they wanted to break down a food franchise.

And no matter what my personal experience or opinion is on the food industry people will still open up food franchises, and people will make money with them regardless of how I feel about it.

The reality is…the food business is still one of the simpler ones to run semi absentee. I say that with the assumption that it’s QSR and not a full service restaurant.

To play devil’s advocate, it’s one of the most scalable in terms of opening a lot of locations. Plus you don’t really hear about a lot of owners with a pest control franchise owning 30 territories…

But it is pretty common in the food space.

So unless you plan on opening AT LEAST 3, I’d probably stay away from food.

Again, that’s just my opinion. But…

If there’s one thing I learned this year, it’s to be even more flexible.

I mean that figuratively, but now that I think about it…also literally lol.

With 2 kids under the age of 5, flexibility is key.

And to be a successful entrepreneur, flexibility is key.

Onto the good stuff.

Tariq

—----------------------------------------------------------------------------

Today, in 5 minutes or less:

✔ 1 Specific resale franchise for sale

✔ 1 Franchise of the week 

✔ 1 Client Case study of someone just like you 

✔ Latest episode of The Franchise Empire Show

—----------------------------------------------------------------------------

FEATURED RESALE

Franchise resales possess many benefits for aspiring business owners - established cash flow, experienced employees, systems in place, and brand awareness to name a few. 

This week, our featured resale comes from AlphaGraphics, a B2B print, sign and marketing franchise. Created in 1970, AlphaGraphics is a well-established leader in the print/marketing franchise category, with over 230 locations open throughout the U.S. AlphaGraphics is a “one-stop” solution for their clients, providing conceptual ideas and campaigns to help clients grow their businesses through a wide variety of revenue streams.

AlphaGraphics - New Bern, NC:

• Asking price of $600,000

• Previous 3-years average revenue of $694,000

• Healthy EBITDA with room to grow (based on AUV listed in Item 19 of the FDD)

• Location established in 2011; owner is retiring

• 5 employees on staff

• Current location can be leased to new owner (relocation also possible)

Franchise Empire’s Take:

• AlphaGraphics is a unique, B2B franchise opportunity. Since this location is so well-established, a potential buyer may assume the purchase would come with a healthy number of local recurring clients. 

• Based on the Item 19, there appears to be room to grow this business, especially if a new owner is comfortable with doing B2B, outbound sales. If you’re looking for more of a professional services and B2B opportunity, this could be a great fit.

Curious to learn more about this particular franchise resale, or other resales available in your area? 

Check on Available Resales Here

—----------------------------------------------------------------------------

CLIENT CASE STUDY

Given we’ve been talking about food franchises, I figured it makes sense to share the case study from our only client who bought a food business.

David was actually one of my very first clients, back when It was just me and my operations director, Maria and I did pretty much everything in the business. ( I don’t miss those days ya’ll).

But I actually helped David buy a NON franchise resale. Well, actually 2 of them. He bought a poke restaurant that had 2 locations.

He came into working together, completely lost, and unclear. He left, a proud owner of 2 businesses.

Check out how it all went down.

—----------------------------------------------------------------------------

FRANCHISE OF THE MONTH

History: 

• Originated in Las Vegas in 2003.

• In 2012, after proving the business model, with 7 open shops, Teriyaki Madness began building its community of teriyaki shop owners and food fanatics nationwide.

• M.H. Enterprises, Inc. (“MH”) is the parent entity.

• Vision is to have 1000 locations open in the next 10 years. 

Numbers:

• Corporate Owned Territories: 0 (just sold their last corporate store)

• Franchise Units: 121 open, but more sold. 

• Franchise Fee: $45,000

• Royalty: 6% of NET Sales

• National Marketing Fee: 3% of net sales 

• Total Investment Range: $305,750 - $731,260

• Term: 10 years

**Numbers according to their FDD released on March 15, 2023

Description:

Teriyaki Madness provides delicious fast-casual asian food. Have your choice of chicken, beef, or tofu, coupled with rice or yakisoba noodles and combine that with your favorite fresh cut veggies and homemade, gluten free sauces. TMAD uses the highest quality of ingredients and every meal is cooked to order in five to eight minutes. 

Financial Data:

Below tables taken from the Teriyaki Madness 2023 Franchise Disclosure Document - Item 19.

Benefits for the Franchisee: 

• Growth - The Asian food category has nearly quintupled since 1999 and continues to grow. TMad has seen same store year over year growth for the last several years. Even with COVID. Their sales still increased from the previous year over year for the past 5 years according to their Item 19. 

• Flexible Locations - TMad can be adapted to a wide variety of real estate. Corporate is heavily involved in finding the perfect location which could be anywhere from 1,050 to 2500+ sq ft. The sweet spot is 1,200-1,600 sq ft and typically in a strip mall but they will work with you on your market to find the most cost effective location.  

• Semi-Passive Ownership - Not all franchises are open to a semi-passive owner but Teriyaki Madness does allow for different types of ownership models which can appeal to someone who wants to keep their job at first, or someone who may already own another business. 

• Additional Revenue Streams - More than 80% of the sales from any given location is done so outside the four walls. Events, parties, corporate meetings and the integration of 3rd party delivery apps helps to increase your revenue opposed to just servicing people that come and sit to eat inside your location.

To see if this franchise is available in your territory
OR
Check the availability of ALL franchises in your area

—----------------------------------------------------------------------------

Episode #31: How to Make Money With a Franchise in 2024

Welcome to the Franchise Empire Podcast. In today's episode, I dive into the topic of how to make money with a franchise. More specifically, six proven strategies you can follow to make money with a franchise in 2024.

I answer common questions like...

How do you make money owning a franchise?

Is a franchise considered passive income?

Can I make money with a franchise while keeping my full-time job?

How does franchising even work?

...And much, much more.

There are a lot of great, practical strategies you can takeaway from this episode so that you can buy and make money with a franchise in 2024.

Sit back, take some notes, and enjoy the show.

Watch on YouTube

Listen on Podcast Platforms

—----------------------------------------------------------------------------

That’s a wrap for this week's Franchise Empire newsletter. 

Feel free to reply with any questions, or feedback. I appreciate and value your time and attention.

I’ll see you at the same time next week!

-Tariq and The Franchise Empire Team

Disclaimer: The data presented here is sourced from the latest Franchise Disclosure Document (FDD) available for each franchise. Please consult Item 19 of the most recent FDD for further details. It's important to note that this information could have been updated since its initial publication. We strongly advise you to confirm all fees, investment requirements, and specific franchise offers directly with the franchisor before making any investment decisions.

The content on this website is solely for informational purposes and should not be interpreted as a bid to sell or an invitation to purchase a franchise. Only a Franchise Disclosure Document (FDD), duly registered in the relevant state, can officially propose a franchise.

This site and its contents do not amount to an offer of a franchise in any jurisdiction or state where such proposals or solicitations are legally restricted. Franchise offers are only valid when presented with a FDD that adheres to the necessary legal requirements.

Additionally, the franchise opportunities mentioned here are limited to specific states and countries.

It is strongly recommended that potential franchisees thoroughly examine the FDD and seek advice from legal and financial professionals before deciding on a franchise investment. The decision to invest in a franchise must be based on a comprehensive evaluation of all pertinent information and considerations