FRANZY THE WEEKLY BRIEFING | | | Hey there, Welcome back to the Franzy Five. Big week in the industry and a bigger one inside our four walls. This week: Jersey Mike's launches its IPO roadshow, my voice is suddenly everywhere thanks to a new content experiment, Insulation Commandos headlines Brand of the Week, $2.5 trillion in private equity capital is circling franchising, I explain why I made a video called "Please Don't Buy a Gas Station," and three more stories worth your time from around the industry. | In This Edition | 📰 Jersey Mike's IPO Roadshow | | 🗣 My Voice Is Everywhere | | 🏷 Insulation Commandos - Brand of the Week | | 📊 $2.5 Trillion in PE Capital | | 📝 Please Don't Buy a Gas Station | | 🔗 More from the Industry |
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| | In the News Jersey Mike's launched its IPO roadshow this week, targeting an $8 billion valuation.What's happening: Jersey Mike's kicked off the roadshow for its IPO on July 20, offering 43.5 million shares priced between $21 and $25 each and planning to list on the NYSE under the ticker JMKE. Why it matters: This comes just over a year after Blackstone bought a majority stake in the chain for a reported $8 billion, and the pricing range suggests Blackstone is looking to cash out at a similar number. Jersey Mike's also brought in CEO Charlie Morrison, who ran Wingstop through its own public debut, which tells you exactly what kind of playbook they're running. The big picture: Franchising is splitting into two camps right now. Jersey Mike's and Inspire Brands are lining up for public markets, while Yum! just sold Pizza Hut into private hands for $2.7 billion. Both paths are proof that big money still believes in franchised brands. They just disagree on whether Wall Street or private equity is the better home for them. |
Read the full announcement → | | Heard at Franzy Turns out my voice really is getting heard everywhere I've been out with a camera the last few weeks, filming content on the franchising industry for Instagram, TikTok, and YouTube. It's a genuinely new muscle for me after years of writing and podcasting, and it's been a blast. The plan is to keep it up: quick hits on franchise economics, brand breakdowns, things I wish someone had told me before I signed my first franchise agreement. If you want the short-form version of what we're building here, that's where it's happening. Give me a follow at @AlexFromFranzy on IG and TikTok if you want in. I'll take the follows as informal market research on whether I should keep doing this. | | Brand of the Week Insulation Commandos Truck-based home insulation and pest-proofing, no storefront required. Investment Range $220,350 - $514,750 | Avg Gross Sales $430K - $1.34M |
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Insulation Commandos franchisees evaluate and install home insulation and related services, blown-in and radiant barrier insulation, duct cleaning, sound and rodent proofing, disinfecting and sealing, and rodent removal, all out of a mobile, truck-based operation covering an assigned territory of 300,000 to 400,000 people. The brand is young, founded in 2023 and franchising since that August, but it's already up to 64 units with 22 more agreements signed and opening by this spring. Item 19 shows the 6 franchisees open all of last year ranged from $430,101 to $1,335,875 in revenue, with the longest-tenured location, open since 2022, leading the group at $1.34 million and a 24.5% margin. Riley brought Insulation Commandos onto Franzy last week, and the brand is moving fast. They just partnered with Red Rock and have a Brand University session scheduled for August 11. | | By the Numbers $2.5 Trillion PE Dry Powder Eyeing Franchise Deals |
Goldman Sachs pegs available private equity capital at $2.5 trillion heading into this year, and franchising is getting its share. Industry deal activity is reportedly up 40% year over year, and more than 12% of franchise brands now carry PE ownership or backing, from KKR's $2 billion Nothing Bundt Cakes deal to this week's Caring Transitions acquisition. | | This Week from Franzy Why I Made a Video Called "Please Don't Buy a Gas Station" This week's video pulls real numbers straight from franchise disclosure documents. 7-Eleven operators don't even own the fuel they sell, they're paid a penny and a half per gallon while the company keeps the fuel business, and a brand new Circle K runs $3 million to $8 million before you've sold a single Slurpee. The real lesson is the royalty, not the franchise fee. 7-Eleven can take up to 45% of gross profit for the life of the agreement, which is exactly why the entry fee is so cheap. I also walk through three boring alternatives, window cleaning, moving and storage, and senior care, that can match or beat gas station economics for a fraction of the cost. | | More from the Industry Three other stories worth your time this week. | Reply if any of these caught your eye. We read everything. - Alex | | | FRANZY Franzy is the modern way to find and own a franchise.
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