What My Friends are Buying

By George Knauf

Click here to leverage our friendship for your personal gain

In full disclosure, company names withheld as I get my candidates in early and don't broadcast their moves. If you want to look at these options, let's talk.

Regional Developer:

• I have 3 RD/Master opportunities on my hotlist right now.
• All offer the ability to purchase franchisor cash flow at a discount, a healthy share of net franchise fees and royalties in trade for providing value to the franchise owners in your region.
• All require owning at least one unit/territory, though could own more.
• They are with one decades old franchisor (new brand) and 2 emerging brands, so great territory availability.
• At least one of the brands would allow the RD to bundle in their RD Territory to a future company Liquidity event.
• One of the brands would consider large territories for experienced franchise whales.

ADU (add on living space) Construction:

• Small add on structures in properties for in-law suites, pool houses, Air B&B rentals, offices and much more.
• Adds income and value to property.
• Addresses lack of low cost housing and senior living with families.
• Very big ticket item.
• No national competitor.
• Solid systems and support.
• Selling fast, let’s go!

Passive investor:

• We are seeing the adaptation of the Ritz Carleton management company model outside of the hotel industry and into both mobile services and retail based operations.
• It was only a matter of time.
• Tends to require purchasing an entire market.
• Buyer/investor must be very well funded to cover all costs.
• More of an investment model rather than daily running the business

Fitness/Wellness:

• While gyms have cooled a little, wellness has taken off.
• There are a few particularly interesting wellness concepts specializing in hormone therapy and weight loss.
• Women’s wellness is the longer established, men’s is coming on fast.
• One of the brands is tied into a long established and large fitness brand family which will act as a potential feeder for customers to the wellness brand.
• Costs are similar to opening a small box gym.
• Trends and treatments change, but adjusting should be pretty straight forward.
• Wellness will never go out of style.

Home services:

• Continued explosive growth…
• Some segments are past the consolidation phase but a larger numbers of segments are at early stages.
• Ugly businesses are great investments!
• Key is finding the ugly businesses with amazing Executives, training, support, systems, technology, marketing, supply chain, etc.
• Consider multi-brand families where the brands are emerging or are old brands which have been updated to modern trends and franchisee profiles.
• Tend to be very recession resistant core need based businesses where the consumer doesn’t check the stock market before making the call for service.

Pets:

• Puppies and Money, who doesn’t love puppies and money? (as my friend Andrew would say). If you like pets, having them as part of you business day could be a lot of fun.
• Bloomberg, Morgan Stanley, Fortune Business Insights and others are predicting substantial growth for the pet care and supply industry overall going forward.
• Start-up costs range from low for mobile services to moderate for pet supply/service retail build outs.
• Pet business customers are loyal, consistent and spend on their pets.
• Staffing is straight forward.
• Can be a passion play for many owners, with a solid business behind it.

Waste removal:

• We create waste, it needs to be removed, that won't change.
• Dumpsters to small items.
• One time or recurring trash day pickups.
• Not sexy, but that’s why it is a good business.

Pods and storage:

• Now seeing expansion into emergency moving and storage as well as cold storage units.
• Can be a more expensive open, but low competition for the moment.
• Cold storage tends to be long term equipment rental.
• Very niche.

Food and treats:

• Very carefully selected, there are opportunities.
• Opportunities are in the niches.
• Be very cautious with fads.
• In the best of times, restaurants can be a hard business
• Real estate will be a hurdle, mobile is an option.

What’s on the horizon?

• Medical figures out franchising, and franchising fixes medical.
• Family Farms in urban settings.

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