(That’s not a fast/casual food, hotel, or real estate franchise)
Every once in a while, a franchise comes out of nowhere and explodes across the country.
The first reaction people typically have when they hear about these are…
“oh, that’s just a fad.”
“how much money can you really make with this franchise?”
“that’s just a flash a pan.”
Back in 2010, a little-known company in the fitness space started to expand by franchising its business.
Yes, a fitness business coming out of one of the worst recessions our country has ever seen.
People sitting on the sideline were offering their two cents about how and why it wouldn’t work.
Well, twelve years later with more than a billion dollars in system-wide sales per year, the entrepreneurial spirit prevailed.
And this company and these franchise owners are laughing all the way to the bank.
So, which franchise has the next billion-dollar idea?
The first one to watch is a food-light franchise.
(yeah, yeah…it’s food-light, but just go with it because it’s interesting).
Crumbl Cookies shot out of a rocket launcher in 2017 and is still blazing.
With 326 locations and another 382 in development at $1,687,731 average unit volume, the math pencils out to Crumbl exceeding a billion dollars in system-wide sales if they open all of their locations and keep performing at that AUV.
All by selling cookies!
And the funny part is you won’t see Crumbl on many of those “franchise ranking” websites.
Another one to watch is Restore Hyper Wellness.
Over the past couple of years, Restore hit hypersonic growth tapping into the lucrative wellness market.
With 150 locations open and another 600 in development with an AUV of $919,825, Restore secured a $140 million dollar investment from a private equity company last year.
Rumors from people familiar with the deal are that Restore was valued at $500 million (with only 150 locations open).
With another 600 in development, it appears Restore is just starting to hit its stride.
Moral of the story…be careful how you judge franchises because you never know what the next billion-dollar brand will be.
Sources for information:
Crumbl Cookies FDD issued March 10, 2022
Restore Hyper Wellness FDD issued April 29, 2022
Club Industry: https://bit.ly/3eDB0yv
Franchise Times: https://bit.ly/3xna1O6