Super Solid Franchise Resale with $2.5M in recurring revenue!

This is one of the best ways to have a large exit (meaning sell your business for a lot of money)…

I’m surprised by how many people don’t know about this, and really what drives the value of businesses to be sold later on for a solid amount.

You probably already know that businesses sell for a multiple of its profits right?

Most often it actually sells for a multiple of its SDE (seller discretionary earnings)…

Which is adding back in any other financial benefits an owner gets from the business (like personal expenses, health care coverage, W2 salary that isn’t reflected in profits, etc.

This is something we actually cover in detail in our Franchise Buyers Academy. (We have 400+ people who have joined)

Here’s what can SKYROCKET your sale price of your business.

Recurring revenue.

What exactly is recurring revenue?

It’s revenue that comes in continually. Think of a gym membership, or pest control services you pay monthly, etc.

Why does it increase the businesses value?

Because the business is not starting from $0 every month.

Now, I’ve seen plenty of businesses WITHOUT recurring revenue sell for large amounts. A buddy of mine recently sold his business for over $9Million.

He had a whopping $0 in recurring revenue. But he sold at x6 multiple.

Recurring revenue can bring the multiple to x10 multiple and more.

Pretty cool right?

The businesses we cover in this newsletter both have recurring revenue.

Actually….!

One of them has CONTRACTED recurring revenue. Which means there is a legal contract in place that secures that revenue for a specific period of time.

Even cooler!

Check them out below, and put in a territory check if you want our team to see if they are available in your area for free.

Tariq

CEO & Founder, Franchise Empire

Today, in 5 minutes or less:

✔ Super Solid Franchise Resale with $2.5M in recurring revenue!

✔ Ultra low cost franchise with recurring revenue

✔ Business Partners buy TRUE Semi Absentee business

✔ Breakdown of the BEST Franchises to Buy (Franchise Empire Show)

Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners

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 City Wide Facility Solutions, a leading provider of facilities management services. City Wide’s corporate location was established in 1961, but the company did not start franchising until 2001. It now has 98 franchised units throughout the country. Franchisees manage maintenance and janitorial services (amongst other services) for landlords and business owners, making it primarily a B2B sales company.

• Asking price of $799,000 (includes franchise fees)
• Location has been open since 2013
• 2023 gross revenue of $2.7M
• Monthly contract revenue of $215,000
• 2 sales executives, 1 account manager, 1 night manager, 1 PT BDS
• Office located in Allentown, PA

• Great opportunity for someone with B2B sales experience that wants a highly scalable franchise with low overhead. They are looking for candidates with “10-20 years of business to business experience – at least five years of sales and/or sales management experience – leadership/management of a professional team – bottom line P&L responsibility – strong relationship building and organizational skills.”

• According to the FDD, the top 25% of franchise owners have an average annual revenue of $18.8M, with the median at $15.7M!

• City Wide offers multiple revenue streams, including commercial cleaning, janitorial services, and other property management services, giving franchisees the opportunity to diversify their revenue streams and increase their earning potential.

Crystal and her best friend Tanisha decided after years of working for somebody else that it was time to take a bet on themselves. After joining ZTPF they were surprised by the wealth of knowledge inside the program and all the support from the team at Franchise Empire. Her advice to anyone looking to get started is…”It’s worth it, bet on yourself!”

Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)

Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.

This Will Save You So Much Time.

We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.

• Corporate location started in 2000 in Virginia

• Started franchising in 2004

• Parent company as of 2021 is AB Assetco LLC (Authority Brands)

• Corporate Owned Territories: 2

• Franchise Units: 86

• Franchise Fee: $49,000

• Royalty: flat fees – 7.5%

• National Marketing Fee: 1.5%

• Total Investment Range: $64,025 – $83,450

• Term: 10 years
  **Numbers according to their FDD released on April 23, 2024.

Doody Calls franchisees offer exterior pet waste removal service and odor control service for residential customers and commercial customers including apartment complexes, commercial properties, and Homeowner Associations, and other related services that we may specify periodically. DoodyCalls offers year-round, twice-weekly, weekly, bi-monthly, monthly, and one-time pooper scooping services for yards of all sizes. They also provide waste station setup and supplies, including dog poop bags, bag dispensers, and dog waste bins. 

Below tables taken from the Doody Calls 2024 Franchise Disclosure Document – Item 19, page 60.

Benefits for the Franchisee:

• Nationwide Call Center – Fields leads and schedules services so you don’t have to answer incoming calls or pay someone to do that for you.

• Low Investment – You can get in with one territory under $100K.

• “PoopNet” Technology Platform – Fantastic software that runs the business for Franchisees; it also manages the employees and vehicles. PoopNet allows customers to “signup” for service all on their own and manages their Account with DoodyCalls.

• Recurring Revenue – Most customers need these services every week, if not more often than that. Once your business is more established you can count on stable revenue coming in every month.

• Super Simple Business Model – Picking up dog deposits is not hard. You can train anyone to do the job well. There are not a lot of moving parts to this franchise and it can be run semi-passively.

• Authority Brands – You’ll not only have an opportunity to network and get referrals from sister companies, but you’ll have the chance to own multiple businesses under the same umbrella company utilizing the same systems/software.

Episode #62: These are the Best Kind of Franchises to Buy In 2024

Want to know what are the best franchises to buy in 2024?

In this video we’ll be breaking down what we believe are the best kind of franchises to buy.

If you’re in the market to buy 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