We Signed A Massive Franchise Development Deal
13 Units with an Emerging brand
We signed a massive franchise development deal with an emerging brand
We're going to build the entire Greater Philadelphia market from the ground up.
Here's the brand & why I picked it:
There's no magic bullet when it comes to franchising.
It's about finding a franchise that matches YOUR skills, goals, budget & location.
Here's my personal checklist:
✅ Sales & marketing driven
✅ Strong unit economics
✅ Huge & boring industry
✅ Ridiculous support
✅ Own Philly market
What brand checked all these boxes?
That 1 Painter, the fastest growing residential painting franchise.
Sales & Marketing Driven
I'm really good at driving sales & marketing. That's been my primary responsibility in scaling our auto repair franchise to 33 units, doing $42M+ sales per year.
The painting business is really just a sales & marketing company.
We do online marketing & build local relationships to generate leads. All those leads book appointments at the corporate-run call center in Austin.
Our local sales manager estimates & sells all the jobs.
We build a bench of high-quality, reliable 1099 painters to complete the work.
Strong Unit Economics
That 1 Painter 2023 FDD says it costs around $100k for one territory. That includes franchise fees, working capital, grand opening marketing, truck down payment, training expenses & more.
The more territories you buy, the lower your cost-per-territory becomes due to a reduction in franchise fees and economies of scale.
Did we just write a check for $1.0M+?
No. The money is invested in phases when we launch each territory.
We paid the franchise fee up-front and will launch 3 territories in February. Once those first 3 are cash-flow positive, we'll use the new cash generated to fund the launch of the next 3, and so on.
Re-investing all the profits back into the business significantly reduces our cash investment and creates a massive snowball effect.
How much money can we make?
The biggest independent painting company in Philadelphia, which covers about 4 to 5 of my territories, does $15M to $20M sales per year.
Our goal is $15M sales per year, within 3 years.
Franchising puts you in the fast lane.
I like industries that are huge & boring.
In a huge industry, customers are already spending a lot of money on the service. Painting also has a lot of unsophisticated competition since almost anyone can start a painting business.
This means market share is taken up by people who do zero marketing, have crappy websites, don't answer the phone, don't follow up on estimates, and don't provide great customer service.
They may do excellent work but are terrible at running the business.
I'd rather steal market share from those competitors than educate people on IV drips, cold plunges, or acai bowls.
A "boring" business isn't going anywhere. Painting has been around since caveman.
That 1 Painter is the founding brand of ResiBrands. Through Resi they are building a strong support system for all their brands, which includes:
The renowned business author John Maxwell personally coaches the ResiBrand franchisees. They are working to bring on other expert coaches in sales, marketing, leadership, management & more.
We are doing their "investor model" which involves buying a minimum of 5 territories and hiring a Regional Director (RD) to run the day-to-day. This is the same structure we currently use to run our Midas shops.
Our RD will have a weekly coaching call with ResiBrands & other RD's around the country to share best practices & ideas.
Own The Philly Market
We are good at scaling a franchise. Taking the same model and repeating it over & over again.
We wanted the opportunity to own all of Philadelphia. The best parts of the market always sell out quickly.
Steven Montgomery founded the company 10+ years ago & started franchising in 2021. As of today, they have over 150+ units sold. Luckily for us most of that early growth has been in the South.
However, they are moving into the Northeast quickly with my deal, Delaware, Virginia, New Jersey, Maine, Massachusetts & more.
Want to join me as a That 1 Painter franchisee?
Reply with your email, phone & zip code.
I'll confirm if your market is open and introduce you to the team over at ResiBrands. I'll share my due diligence checklist to help you through the process.
To hear more about the deal check out my podcast with Steven this week