I just announced my partnership with a new franchisor, Waterloo Turf.
As a full disclosure, I’m an investor, sit on the board, and will soon be a multi-unit franchisee (currently interviewing operating partners).
My involvement was conditional on one thing: making franchisee profitability the company’s number one priority.
Profitable owners are happier, invest to expand their business, and help get more franchisees on board. There is a very strong long-term compounding effect by putting franchisees first.
This is exactly how Peter Cancro built Jersey Mike’s into a $8 BILLION empire.
How Waterloo Turf is prioritizing franchisee profitability 👇
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#1 Reduced Royalties
This is HUGE and something I pushed hard for.
Very few franchises offer discounted royalty structures like this:
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The bigger you grow the business, the lower the royalty on incremental sales.
This structure protects the franchisor’s P&L while rewarding top franchisees.
Franchisees who build a large business usually rely less on the franchisor than newer and/or lower-volume franchisees.
See Item 6 of the 2024 FDD for full details on the royalty structure.
#2 Large Territories
Waterloo Turf is offering large territories of approximately 350,000 people each.
Just three territories will cover over 1 million people.
Why do larger territories matter?
1) They provide franchisees with a bigger customer base while reducing the initial investment costs vs. smaller territories.
2) Easier to own your entire market, build a strong brand presence and achieve better economies of scale in people, marketing & operations.
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#3 Well Capitalized Franchisor
This is rarely talked about but is very important.
If a brand is NOT well capitalized, it is starving for cash and making decisions that benefit the short term but hurt it in the long run.
They approve franchisees based on their ability to write the check rather than operate the business. They delay investing in support for as long as possible. They look for ways to squeeze every dollar from franchisees.
Their short-term profits come at the expense of franchisees.
How much money does a brand need? Somewhere between $500k to $1M.
Waterloo Turf raised over $1 million, giving them plenty of runway to be patient. (I invested in this initial raise)
#4 Franchisee Selection
A great franchisor is highly selective in awarding franchises.
They know the type of people they want to partner with and make the tough decision of turning down candidates who don’t fit the model.
Waterloo Turf requires highly involved and driven owners. People who are going to eat, sleep, & breathe the business.
They are looking for a “Team Captain” with experience leading a team in sports, military, sales, or management.
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A Word of Caution
Every franchisee is an independent business owner who plays by some rules. The success or failure of their business is 100% based on their ability to hire great people, drive sales, and follow the model.
A franchisor’s job is to increase the odds of success by providing a proven business model, training, coaching, technology, resources, marketing support, and more.
No franchisor can guarantee any level of performance.
Next Steps
To start, Waterloo Turf targets major cities in Texas, Florida, Georgia, Tennessee, Carolinas, Arizona, Nevada, Louisiana & other Sun Belt markets.
Click here to request an intro to the founders to learn more.
Cheers!
Brian
