Episode Transcript
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Speaker 1 (00:01):
Hey everyone, jack
Johnson here with your Franchise
Inside Scoop for November 15th2024.
Happy Friday Today for you.
I've got a little somethingdifferent, a little Franchise
Market Watch.
I'm going to talk to you aboutthe franchises that people
invested in this week and kindof go down the list, and then we
can talk a little bit aboutwhat makes these franchises
(00:22):
unique.
First up on the list Mighty DogRoofing.
Any of you that have listened tothe podcast for a long time
know my stance on this.
Roofing is a incrediblebusiness.
It has some of the best numbersthat you can find in
franchising.
Honestly, it's the ability todo big jobs.
(00:42):
In the case of Mighty Dog, theydo residential commercial
roofing services, they do siding, they do gutters and they do
windows, and they've got aturnkey model where franchisees
can focus on the two mostimportant things that make them
money performing estimates andcompleting jobs.
So why would that be the case?
Well, this is a subcontractormodel, which means franchisees
(01:04):
are worried much less about theemployees and much more focused
on going out there and gettingbusiness, and that's why, when
you look in the item 19 of thesebusinesses, the numbers are
awesome.
So extremely fragmented andunsophisticated competition,
high margins.
There's a lack of technologyused in the industry from the
(01:24):
competitors and mighty dogs gota really strong brand.
Uh, they have 101 franchisees,345 territories have been sold,
282 are open.
That's really cool that theyshare that.
Um, this is home-based.
This is not absentee.
Uh, this is E2 visa friendly.
Yes, and their franchise fee is$59,500.
(01:49):
Royalties are 8.5%.
They say total investment is$214,000 to $320,000.
So let's say it's $320,000.
They want you to have a networth of $500,000.
Mighty Dog Roofing Text me at305-710-0050.
I'm telling you.
(02:09):
Uh, this is one to look at,really good franchise roofing.
You saw, um, that actionexteriors came from resi brands,
which is also a roofing brandwhich does siding and gutters
and windows.
Um, really, really great space.
We can save you $2,000 to$10,000 on Mighty Dog, but
you've got to text me to findout what the exact rebate is
305-710-0050.
(02:33):
Okay, next on the list HomeWatchCaregivers.
Well, seems like we're alwaystalking about home care, right?
Every podcast, home carefranchising seems to come up.
Homewatch caregivers, thecaring experts, expert care Wow,
what a, what a tagline.
Homewatch caregivers franchiselocations provide home care and
(02:55):
personal assistance toindividuals who are aging,
disabled or rehabilitating,which allows clients to remain
living independently at homethrough training and ongoing
support from our from their team.
Each HomeWatch caregiversfranchisee is equipped to
deliver the exceptional care andproprietary programs that
provide peace of mind to clientsand their loved ones.
(03:15):
Okay, they say aging population20% of the population will be 65
plus by 2030.
Okay, I'm going to tell yousomething right now about home
care.
It's amazing to me how many ofthese companies bring up the 65
year old, the 60 year old,number 65.
In my experience, your bestclients in this business are 80
(03:35):
years and above.
They really need you.
They need you for the mostamount of time.
So when a home care companytalks to you about all the
people who are 65 and above, youtell them I'm not interested in
that.
I want to see how many peoplein my territory are 80 years and
above.
Okay, desire to remain at home.
89% of seniors want to remainat home.
They don't say where they getthat stat, but it used to be
(03:57):
when I was in home care thatpeople said 9 out of 10.
So it's about the same number.
Said nine out of ten, so it'sabout the same number.
Um, health care reform placesmore emphasis on continuous care
for patients, making in-homecare a more essential part of
the health care system.
Uh, home watch has been uharound since 1980.
Uh, they have proprietaryonline business management
(04:17):
system called care plus uhtechnology on board.
They say no need to haveexperience in this in in the
home care business.
That's true.
Most home care companies donsay no need to have experience
in the home care business.
That's true.
Most home care companies don'twant you to have experience
because they're going to teachyou their way from the ground up
.
The most successful home carefranchisees that I've known have
come from business backgrounds.
They've got a client.
(04:38):
They being HomeWatch has aclient acquisition model that is
unique to HomeWatch caregiversand proven, and they have
multiple service levels, fromcompanion to personal care to
nursing services, depending uponthe state license.
Okay, so been around since 1980.
First franchised in 1996, 224franchise units.
(05:00):
They say franchise fees 50grand.
We save you two to 10K.
You know the drill royalties 5%total investment.
Let's just go ahead and juststart anytime.
I'm going to give you guys thenumber.
Let's.
Let's go with the high number154 K.
Pretty consistent with homecare, 150 K business, 150 K to
build a business.
I think that's a.
(05:21):
From what I've seen over theyears, there are some very
consistent numbers.
Now I'm on their website rightnow, the HomeWatch caregivers
website, homewatchfranchisecom.
They say on their website that2.24 million is the average
gross revenue of theirfranchisees.
Now they have a couple ofasterisks next to that.
(05:41):
Let's see if we can find whatthose asterisks are.
Okay, so this is for the 2023calendar year as reported by all
HomeWatch caregiversfranchisees whose businesses
were operational for a full 12months See item 19, table 1B for
(06:03):
the April 18, 2024 franchisedisclosure document.
Okay, so that's when they startto talk about these numbers in
terms of average gross revenue.
That's where they're pulling itfrom.
Is their FDD, their estimatedinitial investment range.
We talked about $92,154,000.
This is not an offer to sell afranchise.
This is me reading theinformation that is provided in
(06:26):
their franchise disclosuredocument.
Homewatch may or may not beavailable in your state.
Text me to find out ifHomeWatch is in fact available
in your city and state at305-710-0050.
But again, look at that $150Kinvestment and they show in
their item 19 a very highaverage revenue.
(06:48):
I mean, most franchises can'teven dream of accomplishing that
number.
So when we talk about pound forpound home care being one of
the best businesses out there.
I will hold true to that everysingle day.
So HomeWatch caregivers text meat 305-710-0050 to learn more.
Up next is the newest fromHorsepower Brands Varsity Zone
(07:10):
HVAC.
So Varsity Zone HVAC is apremier franchise, everything's
premier, it's the premier, thebest um premier franchise
specializing in heating,ventilation and air conditioning
services.
Okay, what is better than this,you guys?
Heating and air conditioning,we need it right.
(07:33):
Total, need-based business.
Uh.
They service both residentialand commercial clients.
Varsity Zone offerscomprehensive installation
maintenance and repair solutions, ensuring optimal performance
and energy efficiency.
So Varsity Zone offers a greatfranchise in a boring,
absolutely needed business andthey benefit from robust support
(07:56):
, extensive training and aproven business model.
I mean, it comes fromhorsepower brands, um, if you
want to know more abouthorsepower brands, go to our.
We bought a franchise podcast.
We interviewed um some of theirtop executives and you can hear
about how they supportfranchisees.
They really are top notch.
Um.
Why varsity zone HVAC?
Over 50 years of HVAC industryexperience, including sales,
(08:18):
distribution, franchising, etcetera.
Um, they offer franchisees theopportunity to sell carrier HVAC
equipment and partnerships withsolace air.
They offer double the territoryuh that their competitors do.
200,000 people in population.
If you want to be considered forfranchise ownership with
(08:39):
Varsity Zone HVAC.
You want to be a relationshipbuilder.
You want to have experiencewith sales, leadership and
community centric.
I think that's great.
Okay, now here's something forall you guys to know.
They were founded in 2022.
They started franchising thisyear, 2024.
They have one franchiseoperating no corporate locations
.
(09:00):
So this is a new concept.
You guys got to know very newconcept.
They want to grow, initially inColorado, florida, north
Carolina, tennessee and Texas.
Not available in California,north Dakota, new York, virginia
, washington.
Not home-based, not absentee,semi-absentee and, remember, we
(09:20):
like to call it semi-involved.
Now, by the way, if you're goingto be a franchise owner, you
should want to be involved.
You know our franchise PinksJill, and I own a Pinks Windows
Services franchise.
We set a franchisee record lastmonth for revenue and that's an
awesome, awesome feeling to beamongst all these franchisees
(09:45):
and to perform at a high level.
It goes beyond making money.
It goes to winning.
So, for all of you out therewho are interested in franchise
ownership, to winning.
So, for all of you out therewho are interested in franchise
ownership, you shouldn't wantthis just to be something that
you just diversify with and youhave as an asset.
No, you should want to be a topperformer.
I mean, it is so rewarding tobe successful.
(10:14):
Okay, average number ofemployees required are two.
Franchise fee is $59,500.
The royalty has a scale Startseven goes to six, goes to five.
You'd have to ask them aboutwhat it takes to to scale those
numbers down.
Total investment top end 252000.
That's surprisingly cheap.
Um, they want you have a networth of 400 000 and, of course,
we can save you two to tenthousand dollars on this
franchise.
Uh, text 305-710-0050.
(10:37):
Or go tothefranchiseinsiderscom for more
.
Next up on the list Pink'sWindow Services.
Pink's Window Services soldthis week as well.
Pink's provides window cleaning, power washing, gutter cleaning
Awesome, very cool brand.
You got to go check it out.
Go to pinkswindowservicescom.
You've got to see this brand.
They've got a merch page.
They were featured in a Netflixmovie.
(11:01):
If you are looking for kind ofcool retro branding in the home
services industry, pinks isprobably the best that's out
there.
Pinks is providing owneroperator models, manager model,
director model, providingowner-operator models, manager
model, director model and CEOmodel, as well as enterprise
model for franchise owners.
So they have something foreveryone in terms of what you're
(11:23):
looking for.
You want to dive in, beowner-operator, go out there, be
the GM, lead your team great,you want to be semi-involved and
act as a manager over your team.
You can do that.
Director model is where you'reowning four to five units and
you're directing and driving thesales team and the development
of the business.
And then the CEO model has fiveor more units and essentially
(11:47):
you're the CEO of your ownholding company, casting vision,
overseeing the organization asa whole.
I think that's kind of where Ifall somewhere between director
model and CEO model.
For my pinks.
I kind of do both.
My my role is really to well.
I spent most of my time runningpinks, really working with my
GM, and I'm like this morning Ibegan the day looking at our
(12:12):
schedule, cleaning up our PNL Istill do our P&L for Pinks and
just sort of seeing where wewere in terms of collections.
When the checks come in, Ideposit all the checks.
These are all things that arepretty easy to do.
I'm able to put it into acouple hours a day.
So, again, it's being afranchise owner.
(12:33):
You want to be involved, youwant to lead the team, but
there's multiple ways to do it,and so, again, that's what's
cool about Resi Brands and Pinksis.
It does give you those options.
Pinks is moving pretty fast.
It seems to me every week whenI join the franchise owner sales
call that there are new faceson the team.
(12:54):
So that's very exciting and thesupport is there.
A lot of people ask me about thesupport for Pinks, despite the
growth of Resi Brands, which hasbeen fabulous.
Yeah, they're all over us.
Franchise fee and when I sayall over us, that's in a good
way.
Franchise fee is $59,000.
Royalties are 7%.
Total investment $166,000.
Let me clarify I'm giving youguys all these numbers.
(13:16):
This is for a single unitfranchise.
So if you want to scale and domore units, that's a
conversation you'd want to havewith Rezzy Brands.
We can save you $2,000 to$10,000 on your Pinks franchise.
But you got to text305-710-0050 to find out more
why Pinks.
They're backed by Rezzy Brands.
They've got 30 employees onstaff to support their
(13:38):
franchisees.
That brands They've got 30employees on staff to support
their franchisees.
That's true.
And a very strong item 19,.
Super strong item 19.
You definitely want to get alook at that.
And what else do we have?
Okay, one hour heating and airconditioning.
Isn't that interesting VarsityZone sold this week and one hour
(13:59):
heating and air conditioningLooks like it did three
placements, meaning threedifferent people bought it this
week.
So here we are.
What are we seeing in terms ofwhat people are investing in?
They're investing in airconditioning, they're investing
in window washing, they'reinvesting in roofing, they're
investing in home care.
To me, this just makes my hearthappy to see people buying
these smart franchises so realquick.
(14:19):
One Hour Heating and AirConditioning.
They are the largest HVACservice provider in the United
States.
They are an essential service.
Their franchisees experience amore consistent demand and
better work-life balance than isfound with other industries.
With comfort and convenience atop priority, one Hour Heating
and heating and air conditioningoffers an extensive line of
(14:41):
products and services, includingmaintenance, installation and
repair, that keeps HVAC unitsrunning at peak performance year
round.
Okay, so we talked about varsityzone.
Why would you go varsity zoneeven though they only have one
unit?
Well, they're from horsepowerbrands.
That's the latest and greatest.
Now let's go to this.
One Hour Heating and AirConditioning was founded in 2003
(15:03):
.
They started franchising in2003.
They have 323 franchises openand they have 78 franchisees.
You could say the averagefranchisee owns four units, but
I think there's like a guy thatowns all the franchises in
Florida.
So I'm not sure exactly howthat average breaks down, but I
will tell you this they have 33corporate-owned franchise
(15:25):
locations.
That's really cool.
There are hot markets that areavailable Louisville, kentucky,
tulsa, oklahoma, greensboro,north Carolina, portland, oregon
, boise, idaho, albuquerque, newMexico, salt Lake City, Phoenix
, arizona, san Francisco,california, los Angeles,
california and Boston,massachusetts.
They are sold out in Floridaand Alabama, not home-based.
(15:50):
You can do semi-involved withthem.
The franchise fee is $43,000.
The royalties are 6%.
The total investment on thehigh side is $274,000.
They want you to have a networth of $150,000.
And if you want to save $2,000to $10,000, you want to text
305-710-0050.
(16:10):
You can work with me personally.
I'll help you explore one hourheating and air conditioning and
all these franchises.
And all these franchises.
I'll share with you kind ofwhat Jill and I do to run a
successful franchise, how we'vebeen able to scale our franchise
quickly, but also give you thereal scoop on how do you
overcome those hard months.
For those of you that listenedto the podcast yesterday, you
(16:32):
heard me talking to Jeff Duden,who has Homefront Brands, about
how, at month six, you may wantto quit.
You may not want to do thisanymore.
That's okay.
It's fighting through the heart.
It's like when I get in thecold plunge in the morning, that
first, those first five seconds, are really hard, but after
I've finished with the coldplunge, I'm so glad I did it.
Um, and the same is true ofbusiness ownership.
(16:54):
You have to know what you're infor.
You have to fight through thehard.
Okay, the other franchises thatsold this week Mobility City
they fix wheelchairs, scootersand more.
Up Closets, which is a closetsort of design service.
I feel like Up Closets isselling like almost every single
week this year.
But that's the franchise marketthis week.
(17:16):
You guys, things are moving at avery good pace here as we start
to kind of close in on the endof the year.
For those of you that arestarting to think about this
that you might want to startexploring franchise ownership,
here's kind of what it lookslike From the first conversation
with me or with Jill aboutexploring franchises to the time
you would become a franchiseowner.
(17:38):
Because we have to go throughthe process.
We have to find the franchisethat's right for you.
Once we do that, it's about afour month process from first
phone call to you becoming afranchise owner.
If we're talking about some ofthese service franchises Mighty
Dog, like Pinks, like VarsityZone, like one hour air
conditioning it's another threeto four months to get open.
(17:59):
So if you were to begin yourjourney with us today, midway
through November, we're lookingat opening somewhere in the
early summer.
So there's your timeline Ifyou'd like to talk to me about
it.
Text 305-710-0050.
Let's get on the calendar,let's talk about your needs,
(18:24):
let's talk about how we might beable to help you identify the
best financing solutions foryour franchise, the best legal
solutions for your franchise,and show you franchises that
make sense for you.
Thanks for joining me today forthe Inside Scoop on Friday,
november 15th 2024.
I'm Jack Johnson and I'll talkto you next time.