April is an exciting month in the franchise world! Brands are refiling their Franchise Disclosure Documents (“FDD”), which means there are new item 19 earnings claims coming out every day.

• Magnolia is Southern Charm + Handcrafted Products + High Quality Ingredients! They have a wide selection of soaps, bath bombs, shower steamers and laundry soap that can be purchased in-store or online

• Only requires one employee during most days/times of the week

  

• Experienced Franchisor with over 40 locations in system today with unbelievable franchisee validation! 5 out of the 6 first franchise owners have already purchased and opened a 2^nd location.

• They have locations in towns of <10k people doing nearly $700k in revenue

• Simple, Scalable Retail and Labor Model – 1,200 to 1,500 sq ft; only 1 employee during most store hours.

• Omni-channel sales opportunities both inside and outside of the four walls.

• Franchisor Managed e-commerce sales, wholesale & fulfillment. The franchisee is paid and doesn’t have to do any of the work!

• Moderate Investment (~$239-$331k) with Robust Item 19 showing Average returns in 1^st Year of $100k+!

• Average 1^st year store - $412,735 Revenue / $100,249 Net or 25%

• Top 20% Revenue - $616,252 / 197,792 Net or 32%

• Detailed location by location P&L background (snapshot below —> note there are many more locations shown in item 19. I didn’t include more so it was legible). This is a real rarity in the franchising space in terms of how transparent they are being

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Tim’s Take: There is a lot to like about this rapidly growing brand! It requires few employees, is a relatively low retail investment (as low as $239k), and it has very strong (and super detailed) financials. Oh, and did I mention its products are fun!

The fact that they have locations in very small cities (Cullman, Alabama has 19,251 people and yet that location still was able to achieve a net operating income of $167,584) that are operating very successfully bodes well for the viability of the concept in most markets.

My biggest concern with this brand is how it would fair during an economic downturn. I’m comforted by the fact that it began franchising in 2020 and has experienced strong growth since then, indicating it was able to weather the Covid-19 storm when many people stopped shopping at retail.

• A leader in the in-home senior care services space

• Only home care franchise to be owned by a health system, Advocate Aurora Enterprises.

• Client lead generation through their national agreements – provides each owner an average of 100 client leads and phone calls each month

• Proprietary LIFE Profile assessment tool that was developed from 18 years of data and research on methodologies to reduce hospital admissions. Identifies risks and customizes care plans unique to each client.

• Over 300 open locations

• Online University that consists of over 400 training courses

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Tim’s Take: There are 50+ senior care franchises in the US. It is a crowded field and can be difficult for brands to differentiate. I did an extensive comparative analysis for my clients comparing different factors (e.g. earnings claims, availability, royalty fees) across brands and we narrowed it down to 3 senior care brands that would best fit what they were looking to accomplish.

Senior Helpers really differentiated itself based upon its help with client lead generation through their national agreements. ~100 leads and phone calls generated each month from its national agreements is huge! They also have a fantastic leadership team and build strategically (new franchisees are not allowed to buy multiple territories right away, which is very unique for the industry).

In this episode of the Kickstart My Franchise podcast we chat with Shideler Bennett, one of the original franchisees of Crumbl Cookies.

Shideler owns 9 Crumbl locations across multiple states.

Is the sky truly falling at Crumbl like many of the headlines would lead you to believe? What does the future hold for them?

Tune in to hear straight from a true insider.

Interested in learning more about Magnolia Soap & Bath or Senior Helpers? Email me at [email protected] or Click to learn more. I can let you know if they still have availability in your area and introduce you to their management team.

Legal Disclaimer: This is not investment advice. All views expressed in this newsletter are personal opinions. You must do your own research and reach your own conclusions. All investments come with the risk of losing your entire investment.