Only two things are guaranteed in life: death & taxes
Every day, families say goodbye to their beloved pets.
To honor their memory, many families choose cremation, to celebrate a pet’s life with dignity and care. This is exactly what my family did last year for our 12-year-old German Shepherd Luna.
There is a unique franchise that helps families during these trying times while also having a great business model:
- Strong margins
- Highly fragmented
- Minimal competition
Meet Resting Rainbows:
Business Model
Resting Rainbows offers several services to honor a pet’s life:
- Private Cremation
- Pickup/Drop Off
- Memorials
Competition is surprisingly low with only 800 to 1,000 crematoriums nationwide. Resting Rainbows plans to be the first national brand.
The pet industry is remarkably resilient regardless of the economy. Plus as pet ownership continues to rise, so does demand for end-of-life care services.
This business is not for everyone. Resting Rainbows is one of the only brands that encourages candidates to attend an in-person Discovery Day very early in the process.
You have to be comfortable walking into a freezer of dead pets, the cremation process, and dealing with grieving pet owners.
Otherwise, you could waste 3+ months of research and due diligence.
Earnings Potential
They provide a lot of financial details in Item 19 of the 2024 FDD.
This is great to see considering the uniqueness of this business model.
In 2023 the founding location generated $715k in sales and EBTIDA of $221k, a margin of 31%
They also provide information on the mix of services, number of cases, average revenue & source.
Interesting to see they more than doubled the B2B business with vet clinics from 1,176 cases in 2022 to 3,123 in 2023
Start-Up Costs
The total investment in a cremation location ranges from $211k to $563k, which includes the franchise fee, cremator, leasehold improvements, equipment, working capital, and more.
The cremator is the biggest variance in the investment based on the size and decision to finance vs. purchase outright.
They encourage franchise owners to run a hub & spoke model by investing in one crematorium and then additional storefronts to act as spokes. This is the most cost-effective way to scale the business
A storefront (spoke) location with no cremator costs $129k to $263k.
You’ll work with Resting Rainbows to develop a tighter budget range as you go through the process. The SBA will fund 70-80% of the start-up which helps a lot.
Background
The company was founded in 2018. They started franchising in 2023.
As with any new brand you’ll want to conduct thorough due diligence. If you work with my team we’ll give you a checklist to help with the process plus 40+ questions to ask the franchisor and other franchisees.
Next Steps
Fill out this form to learn more
My team will confirm your market is open and connect you to the brand
You’ll also get invited to join live group calls I host every week
Cheers!
Brian
P.S. I’m working to become the #1 franchise education channel on YouTube
