A B2B Cost-Reduction Franchise

Every business owner is looking to reduce fixed expenses.

Every dollar saved is another dollar of profit. For a business with a 10% net margin, saving $10,000 equals adding $100,000 in sales.

Schooley Mitchell is a franchise that helps businesses reduce their costs. Here are the highlights:

• Top quartile sales $800k/yr

• Recurring monthly income

• Work from home

• $70-80k investment

Business Model

It's simple: you contact business owners offering a free expense reduction analysis.

You are looking at the following line items:

• Facilities Supplies

• Uniforms & Linens

• Merchant services

• Telecommunications

• Fuel, Waste, & Utilities

• Electronic logging devices

• Less-Than-Truckload (LTL)

• Software as a Service (SaaS)

The franchisor has proprietary software to analyze what they are spending vs. other similar-sized businesses.

You help the business negotiate lower rates in return for 50% of the savings.

Example:

You find a business with 30 locations paying $400 per month, per location for trash pickup.

You help the business lower their rate to $300/month

They lock in a 36-month agreement, saving the business $108,000

($100 per month x 30 locations x 36 months)

You'd earn 50% of the savings = $54,000, paid monthly over the term of the contract.

Franchisor Support

You probably know nothing about negotiating trash, LTL, telecommunication contracts, etc.

Don't worry - the franchisor handles all that. Your job is to get the customers, and they do the rest. They also provide tons of training to help you get in front of customers.

The franchisor charges 35% for the "production fee" of analysis/negotiation plus 10% royalty/advertising.

This 35% is your "cogs of goods of sold" leaving you with 65% gross profit.

From our example, $54k x 65% = $35k gross profit, paid over 36 months

How Much Can You Make?

This is an outbound B2B business. This is not for people who expect to sit back and wait for the phone to ring. You need to be networking, doing cold outreach, working leads, and asking for referrals.

In the 2023 FDD, Item 19 provides a table of all "full time" franchisees

They track "Secured Revenue" which is the total amount you'd receive over the term of the contract ($54k from my example). You'd receive 65% of the "secured revenue" after the franchise fees.

• Highest Producer: $3.1M

• Top Quartile: $800k

• Average: $275k

Start-Up Costs

Schooley Mitchell costs around $70,000 to $80,000 to start up. It is one of the lowest-cost franchises out there. See Item 7 of the 2023 FDD for a full investment breakdown.

They are running a “royalty holiday” incentive right now. New franchisees won't pay royalties for the first 12 months!

You operate from home keeping your overhead very low. You can start small doing everything yourself then build a team to support you.

I'd use a virtual team from the Philippines to help find & qualify leads.

Ideal Franchisee

This is a great opportunity for existing B2B sales reps who are driven to win.

You are building something for yourself instead of building the business for someone in exchange for a one-time commission.

They require $100k liquid w/ $150k net worth.

You must be able & willing to follow a system.

Next Steps

Respond to this email if you're interested in learning more. I just need your phone number & zip code.

I'll get you connected to the franchisor. I'll also send you a "due diligence" checklist to help guide the process. All for free

If Schooley Mitchell isn't the right fit, we can help you find another franchise that makes sense based on your goals, budget, skills & location. Book a call here to get started

Cheers!

Brian Beers