Unlock the secrets of successful franchise ownership with us, Jack and Jill Johnson, as we bring decades of consulting expertise straight to your ears.
This episode is a treasure trove of insider knowledge, where we dissect the robust IT solutions of CMIT and the essential arboreal care provided by Monster Tree Service. We're peeling back the curtain on the alluring world of franchises, debunking myths, and talking hard numbers to guide you through the landscape of potential investments. Forget what you think you know about food chains; service-based franchises are where the resilience and opportunities truly lie.
Venture deeper with us into the nuts and bolts of running service franchises. Our own story, woven with the triumphs and trials of multi-unit ownership, serves as a backdrop to understanding what it really takes to turn a profit with brands like One Hour Heating and Air Conditioning. We don't just stop there; we evaluate the unique offerings of Sharkey's Cuts for Kids and the rapid expansion of That 1Painter, supported by Resi Brands. Listen in as we impart crucial advice on choosing a franchise that not only fits your financial goals but also stands the test of economic ebbs and flows.
Finally, we illuminate the shining path to partnership with a Resi franchise. Imagine having a support network that rivals that of tech giants, ensuring your focus remains on delivering exceptional customer service. We walk you through the impressive financial success stories of Resi units and share a glimpse of what lies ahead in our upcoming podcast series, where we'll continue the conversation on making smart, informed decisions in the dynamic realm of franchising.
Join us on this enlightening journey, and let's shape your franchise aspirations into reality.
Unlock the secrets of successful franchise ownership with us, Jack and Jill Johnson, as we bring decades of consulting expertise straight to your ears.
This episode is a treasure trove of insider knowledge, where we dissect the robust IT solutions of CMIT and the essential arboreal care provided by Monster Tree Service. We're peeling back the curtain on the alluring world of franchises, debunking myths, and talking hard numbers to guide you through the landscape of potential investments. Forget what you think you know about food chains; service-based franchises are where the resilience and opportunities truly lie.
Venture deeper with us into the nuts and bolts of running service franchises. Our own story, woven with the triumphs and trials of multi-unit ownership, serves as a backdrop to understanding what it really takes to turn a profit with brands like One Hour Heating and Air Conditioning. We don't just stop there; we evaluate the unique offerings of Sharkey's Cuts for Kids and the rapid expansion of That 1Painter, supported by Resi Brands. Listen in as we impart crucial advice on choosing a franchise that not only fits your financial goals but also stands the test of economic ebbs and flows.
Finally, we illuminate the shining path to partnership with a Resi franchise. Imagine having a support network that rivals that of tech giants, ensuring your focus remains on delivering exceptional customer service. We walk you through the impressive financial success stories of Resi units and share a glimpse of what lies ahead in our upcoming podcast series, where we'll continue the conversation on making smart, informed decisions in the dynamic realm of franchising.
Join us on this enlightening journey, and let's shape your franchise aspirations into reality.
What is up? Future Rockstar franchise owners? I'm Jack Johnson, back with a special guest.
Speaker 2:
Hi everyone, I'm Jill Johnson.
Speaker 1:
She's back.
Speaker 2:
It's been a while, but I'm back.
Speaker 1:
Actually, I've been here all along, but you know, listen, things are pretty busy over here at Franchise.
Speaker 2:
Inc. Doing the behind the scenes work.
Speaker 1:
That's right. So for those of you that are new to the podcast, we're Jack and Jill Johnson. We are franchise consultants. We've been in the franchise business for 100 years Just kidding, 20 years Feels like it and we help people identify the right franchise to invest in. The reason why people love our podcast is that we keep it real. We tell you about the franchises that people invest in every single week through us and 750 other franchise consultants. I think is actually more.
Speaker 2:
It's in the thousands. No.
Speaker 1:
No, probably not that.
Speaker 1:
Getting there, but we collect all this market data through people that are affiliated with us and, of course, through the clients that we help to bring you guys the scoop on the real franchises that people invest in every single week. And here's the best part. So, as franchise consultants, you don't pay us. So if you want our advice on what franchise is best for you to invest in, we'd love to help you. We get paid a commission when we help someone become a franchise owner, so it's kind of like working with a real estate agent, except we rebate you when you find your franchise through us, meaning that we save our clients routinely anywhere from two to 10,000. Heck, we even save someone 20 grand once on a franchise through our cashback rebate program. So listen in, learn about great franchises and text us at 05-710-0050. If you'd like us to help you on your franchise. Search them with that said, jill, let's dive in and talk about the franchises that people bought this week, starting with one of my favorites CMIT. What is CMIT?
Speaker 2:
Okay. So CMIT is actually like technical support and IT services, so they work at one goal they're trying to help businesses run smoothly. They're ready for any technology related issue. So they're proactive instead of reactive. So they're really trying to prevent a diagnosis and fix problems before anyone notices them. But they'll also come and show up when things go down. They'll do both things. So they're kind of like I don't know strongest line of defense, because they come in when you need them the most. They're there. You know everyone's freaking out with their IT issues and it's hard to get your IT person. So anyway, they are there, they help everyone, they are productive, efficient and they fix all those hard to understand issues. So anyone that runs a business knows you're always going to run into these type of issues. So it's really good to have this type of company to help people out.
Speaker 1:
I mean, the only drawback I see is that you know, normally you've got to have like an IT guy to talk shit about, right, None of this IT is outsourced. I mean, do you still think about it the same way?
Speaker 2:
I love always working with the IT guys. They were always so helpful and as long as you, you know, gave them some like snacks or something, they were always very extra helpful when you needed them. But this is great. This is something everyone needs, because, I mean, no matter what we're doing with technology, there's always going to be an issue. So it's wonderful it's home-based. You know you're helping people. Everyone has problems with technology, so it's kind of a win-win.
Speaker 1:
Yeah, I mean it's low startup costs. The franchise fee is 49.950. Pretty standard. Ylts are 6%. They say the total investment is 100 to 158,000. So what does that mean? Total investment? We include the franchise fee. So we pay our franchise fee of 50 grand. Ideally, you probably have 110,000 sitting in your business bank account and that should fund your business over the course of the first six to nine months when you're trying to get the business to a point where it no longer needs your capital injection. That's what it looks like. So as far as you know what the actual business, you know things you can look for. By the way, we can save you $2,000 on CMIT. Low startup costs and typical customers will bring a franchise to break even. That's really good. As Jill mentioned, home-based multiple revenue streams. They claim recession resilient. I think that's probably true.
Speaker 2:
I mean, listen, a lot of the issues we all had with our computers is when we were during the pandemic and everyone was working from home. So yeah, I mean I would say, no matter what's going on, people are going to need technological help.
Speaker 1:
I feel like we're always every couple of weeks helping someone buy one of these, and they're really good people. So see at my T, save two grand Text us 305-710050. Next up, monster Tree Service. Believe it or not, jilt, monster Tree Service is a franchise that sold a crap ton of franchises a couple of years ago. This was a huge brand and they sold out most of their territories, and now, because they only have so many territories left, they're kind of selling at a slower pace. Monster Tree Service is well. Why don't you tell the folks what is Monster Tree Service?
Speaker 2:
So it's Tree Service. Surprise, surprise. Now it's year round tree removal, pruning. They clear your land, they get rid of stumps, anything that has to do with tree implant care. They're there to help and it's residential and commercial. They have an adorable little monster in their logo. Again one of those businesses kind of everyone needs. We all have trees, we all need some kind of tree removed or planted or something, so it's a necessary business.
Speaker 1:
I mean, when we show this type of franchise to a client, sometimes they'll be like oh dude, why did you show us that? I was really hoping you'd show us McDonald's. And what I would say to you is this when most people initially look at this, they're like oh, am I just going around and providing tree services?
Speaker 2:
Well, no, you are marketing to HOAs, and if you're anything like where we are here in South Florida, you get yelled at all the time for having a tree out of place or a stump that needs to be removed. There is work. There is a lot of work to be done.
Speaker 1:
But imagine if you could go close a 200-home community. That's the fun of these businesses is, yes, you're going to have your residential jobs. That makes you a couple $300, $400, $500. But if you can go close an entire HOA, I mean that's a six-figure job. That's a long-term contract. That's the fun of these businesses. And they have multiple revenue streams, high repeat sales. Of course, once you hire someone for this, it's mainly going to be a longer-term contract. They have great profit margins. We'll talk about that in a second.
Speaker 1:
Scalable normal hours, which I think is key. Franchise fee for this franchise is $49,500, which again is standard. The royalty is 6.5%. Now the total investment on this business is $422,000 to $568,000, much more expensive than your typical service business. But that is because it's a heavier equipment business for this type of thing to provide the type of tree services and trimming and what needs to be done. The advantage is with Monster Tree Service is that a lot of that equipment is a section 179 tax deduction. So the truck itself is over 6 tons, so you can write up 27,000. There may be a lot more to it. So sometimes with these heavier equipment franchises there are huge tax advantages.
Speaker 1:
But again, if it's me and I see what that investment is. I'm making sure my business bank account has got half a million bucks in it when I start. Be real about all of this. You guys, franchises, need a big runway to grow.
Speaker 1:
Now, on the flip side, the top 50% of franchisees enjoy a million to gross revenue, which if you've listened to our podcast that's what service franchises typically do you see gross revenue anywhere from $600,000 to, say, a million five. So Monster Tree is on the higher side of that and on a business like this, you probably will see a net return of somewhere between 15% and 20% net net net, depending upon how sharp you are as a franchise owner. So what's nice is they have an investor model, which means less time from the owner, easier model scale and higher GM to help you run the business. No brick and mortar, as I mentioned before. Big tax advantages what they call accelerated depreciation where you can claim if you've got, say, 27k in depreciation, you can write it off in year one. And let's just talk about this. We've got an election coming up where a lot of our nice tax advantages may go away soon. So just something to think about.
Speaker 2:
Keep that in mind, that's true Monster Tree Service.
Speaker 1:
we can save you 10 grand on this franchise and guess what folks? A lot of times the first down payment on a truck or something like that's 6 grand. Franchise insiders can cover that for you. So if you want to learn more about it, text us 3057100050. Next up, jill one hour heating and air conditioning. Why is this a great franchise?
Speaker 2:
Well, I mean, how many of you guys have had a heating or an air conditioning issue lately? This is something that everyone needs. Obviously, you have heating and air conditioning repair. There's installation for when you're ready to pull the trigger on an AC unit after a few too many heat waves, and then the maintenance services. So that's huge, as maintenance is no matter what's going on. Everyone needs to have all their machines low or maintenance maintained.
Speaker 2:
So you have the recurring business and, again, everyone has heater air conditioning. So we're looking at something that is a necessary need and I guess what they do too is they you can own your own heating and air conditioning, but they also work with existing ones as well. So maybe there's like a mom and pop somewhere that they come in and kind of help them with their business and increase and grow. So, again, it's one of those types of things that everyone needs that service based, and they just want to make sure that you know you have a team that is focused on helping your team grow, remain successful and then really just keep up with industry standards, because, again, this is something that every single house and commercial area needs. So exactly.
Speaker 1:
And the investments nice and low. Franchise fee is 43,000 royalties or 6% total investment, 128 to 223. So, again, whatever that high end is, take out your franchise fee, throw that in your business bank account and hope that that gets you to profitability. That's how we look at this. Now, again, what's nice about this? None of you are probably dreaming of owning a heating and air conditioning company, but their top location, their top owner, does 22 million per year gross. So let's talk about what that really means. That means that that owner likely has somewhere between 18 and 20 locations. That's what it is, because, as we mentioned before, the average location is doing somewhere around a million bucks, something like that. That's.
Speaker 1:
There's no secret to this. There's really not one franchise that makes so much more than another. Being successful in owning a franchise is scaling units. It's why Jill and I own five units of the window washing franchise we own. So again, there's no secrets. There's no anything that makes service franchises do what they do, and it's a game of scaling units and it all depends upon what you can invest in.
Speaker 1:
There, again, is where Jill and I help people. What is a comfortable investment for you, what are your goals? And we help you build it out from there. We bought five units of a service franchise because we want to grow a $5 million business and net a million dollars a year. It's as simple as that. It's not a promise, it's not a guarantee, but that's our aim. Back to one hour heating and air conditioning Home services are consistently thriving and growing. That's no secret. This is a good, long time proven franchise. If you want to save 10 grand on it, text us at 305-710-0050. Next up on this list Jill Sharky's cuts for kids. As parents of an 8-year-old who grows hair like crazy, this is a totally need-based franchise and a great absentee franchise. What makes Sharky's different?
Speaker 2:
I mean, first of all, when you're in this stage, this is a big deal. A kid's haircutting place that's fun for the kids, fun for you. We've had a difficult time with our son getting his haircut, but these types of environments really help him. It's a fast growing chain. Again. It's, they say, from kids zero to 13. I've seen kids older than that.
Speaker 1:
When you love a hair stylist, they will cut anyone's hair.
Speaker 2:
You may have to sit in the fire truck, but other than that you're good. No, but it is. It's definitely well needed. You need one of these literally in every town because during that age range, haircuts can be difficult and they make it fun for everyone. It's a fun experience. You get basically a good haircut or you know, with our son, the best you can get on him, with him squiggling and moving around, but you have experience stylist, it's a clean place, it's fun. They do even fun things like birthday parties and they sell accessories and they do all of these different things. They do cute little braids on girls. I mean, it's just it's a fun experience and when you're in that time period with your kids, this is something that becomes kind of like your life. So definitely needed and fun and you'll do well, honestly, anywhere there's kids.
Speaker 1:
Yeah, I mean, I agree, I think this is a no brainer in it. They do have. They will tell you they've got a strong absentee model. So you know, while you might be an investor and saying owning a kid's hair cutting place doesn't sound like my cup of tea, if you're out there and you've got a bunch of cash and you're just making 5% on it, this might be a nice option for you. What's different is that Sharky's charges 160,000 for the franchise fee, which is probably the highest I've seen. But that includes, like all the stuff right, that gets you all the stuff for your salon. It's a pretty simple, straightforward thing. He says total investments 300K. So pretty much half of your working capital goes to the franchise fee. But again, a lot of that includes the actual materials and whatnot that go into it.
Speaker 1:
I mean the things that I think make Sharky's good. It's a really simple business. They say it's nearly 100% absentee. It's $223,000 average revenue. I mean, let's face it, let's be honest and real. And, scott, we think you're great and we think your franchise is great. That's a low average revenue, but for a simple business, you know, let's just say that it nets you. You get running your Sharky's down to a science within three years and each unit nets you 40 grand. And let's say you wanted to make 400,000 a year. You got to own 10 Sharky's. Now listen at 300K a clip. That's not so bad when you consider some fast food franchises. A single unit might cost you $2 million, so it might only net you 100 to 200. So this is a good investment if you look at it the right way. In terms of multi-unit absentee. They've got 20 years in the business. It's a very simple business model very high margins and recurring revenue. Kids zero to 13, which is great. You got a long runway.
Speaker 1:
Last up on our list for today is a franchise we seem to talk about on every single episode. This is really normal Every year. If you guys are longtime listeners, you know there's always a franchise QC, kinetics, spray Foam Genie and, in this case, that One Painter that we are talking about on a weekly basis because people are consistently investing in that One Painter and there's many reasons why people invest in that One Painter. It is backed by Resi Brands. They're incredible folks and they have they really have professionalized a great system for running a painting franchise. That I mean. I've never seen a painting franchise sell like this and Jill, I don't know what are your thoughts on why?
Speaker 2:
Yeah, I mean. So obviously, painting is painting right. So that's something that, again, you need in your house. Whether it's a room, you have to do a whole house you're remodeling, you're buying a new house, I mean there's always a need for painting. So that's great. But this is a little bit different because of the way they run their business. It's professional, it's dependable. As a franchise owner, you get so much support from Rezzy. They handle marketing, social media, seo, I mean they do everything. They have their in-house appointment centers so you don't have to worry about that. They really do all that back end work so that you can focus on the customer service and the customer experience and what that person feels like. So they really allow you to focus on your business and build those connections and the quality of the painting, and you don't get that with all of these single painters that you hire. Well, it's true, and it just makes the experience very different, something that people are going to refer and reuse over and over again.
Speaker 1:
Yeah, I think the brand is killer. I think you have a variety of both full-time employees and subcontractors, which is great, and Rezzy's got the model of that one painter down to a T. They have an investor model, which is what we own on their Pink's brand, which just means there are a lot more hands-on in helping you to run your business, which if you are like us and you already have a business or you already have a job and you want to own an asset, that's really helpful. They show their average unit value at about 1.3 million. I mean that's on the high side of a service franchise to do a million, three per unit. So that's great. They show their top location doing over $4 million per year, which means that that number he's got three units Fastest growing painting franchise in the country selling out very fast. This is my favorite part huge support team, Over 30 full-time people and that's absolutely legit. We talk to on our side, being Rezzy franchise owners, we talk to.
Speaker 2:
Rezzy. Support people. There's always someone to help you.
Speaker 1:
We are talking to. Rezzy support people all day long and they have made our life really easy as franchise owners Everything from getting the truck wrapped I was telling someone the other day about how easy it is with the marketing, how dialed in they are on the SEO side of things and put the credit card down. They run the Google ads for you. Then when someone fills out a form, it goes to their call center. So for us, as franchise owners of a Rezzy brand, we have to make sure we've got our team in place, which for us is having a GM that we pay a nice base salary to and then having the team to go out and do the jobs right. So that's their in-house marketing. Their culture is fabulous. I compare them to Apple all the time. You know what it is Jill for me for Rezzy and not to turn this into a Rezzy brand's commercial, but I love their youthful culture.
Speaker 2:
Yeah, it's a fun culture. You feel comfortable working with everyone. Everyone's excited. They're excited about the ongoing brands, the upcoming brands it's just their pleasure to work with, and starting a business can be intimidating and scary and they make it very easy and enjoyable.
Speaker 1:
Yeah, so franchise fee is $50,000. I think it's going to go up to 60 in the next few months. They say total investment for a single unit that one painters $110,000. So again that means you're putting $50,000 in a business bank account to get started. That's for a single unit. And again, let's just be clear on what a single unit is, that you might only be able to grow a business. Let's say best case that does a million three and if it nets you 20%, then your cap there is like $200,000 per year. Some of you may be happy with that, some of you may not be. You have to set your own goals. We can save you $10,000 on that one painter and we just think it's a great franchise. All these franchises are so anyway. So for this week and our sort of market analysis, that's all we have for today. Jill anything else from you.
Speaker 2:
No, I love this list. I love the variety that we're seeing here. I mean, it really just shows you you can find.
Speaker 1:
Anything will help you find whatever your perfect match is, but good to hear about different ones and yeah, well, and also exciting news for you guys Jill and I are going to start a new podcast. We're not fully we haven't determined our name for it, but what we're going to do is, at least once a month, we're going to talk to you about what it is like building our pinks franchise from our first job which we've already booked, by the way We've got our first big commercial job Very exciting, that is going to be $40,000 over the course of a year for us. We are going to talk to you guys about what it's like building our pinks franchise and we are going to be we're going to lay it all out for you, we're going to be real.
Speaker 2:
We're going to be real. You're going to hear it all, but we want you guys to see what it's like to be on that side, since that's what we talked to you guys about. Now we're going through it ourselves. So you're going to hear the good, the bad and the I don't want to say ugly, because we're going to make it good, but you're going to hear it all.
Speaker 1:
We're going to make it killer, all right, you guys. Well, thanks for tuning in to the Inside Scoop franchise MarketWatch podcast. We'll talk to you next week.