WHOA: $800k/yr cash flow side hustle?

Hey Side Hustler,

Today we’re going to do something different. My friend JT Singh (check him out at @FranchiseMnA on Twitter/X) sent me a killer opportunity that I think would make an amazing side hustle. And it could lead to a full time hustle.

But it’s very different - it’s a franchise. I’ll be honest, I looked down on franchises for years. As a guy who LOVES the art of the start, I thought it was a lame way to start a business. All of the fun creative stuff (logos, branding, market strategy) is sucked out of it.

And more importantly, I thought all the profit was scooped up by the franchisor. Happy to admit I was wrong.

In fact I can now admit that franchises are a GREAT way for first time entrepreneurs to get in the game. All the heavy lifting is done for you on the front end and (with a little hustle and grit of course) you can make really good money.

That brings me to JT’s opportunity: power washing. This side hustle has risen in popularity in recent years. And, unfortunately, there are very low barriers to entry for some aspects of the industry. Many times all you need is a truck and a power washer.

BUT this particular franchise has targeted something those small upstarts will struggle with: commercial power spraying accounts. There are dozens of industries that need high-powered, in depth washing that Chuck in Truck just can’t (or won’t) do.

Enter Rolling Suds. I’ll let JT take it from here (with my notes inserted. Note: a ‘zee’ is a franchisee and ‘zor’ is the franchisor):

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The nations first power washing franchise that's taking the industry by storm with the best equipment, marketing, corporate lead gen, and leadership

✓ Niche industry 
✓ A+ Leadership (@RollingSudsCEO) 
✓ No national competitors 
✓ Strong unit economics 
✓ Quick start & Easy to operate 

Unit Economics (per FDD corporate location) 
✓ Revenue: $2,204,679
✓ EBITDA: $818,541 (37%) - WOW!
✓ Average ticket: $5,782 (commercial) 
✓ Average ticket: $505 (residential) 

Per Truck Economics: 
✓ Revenue: $373,305 
✓ EBITDA: $147,165 (39%) 

They are not selling more than 4 territories to anyone initially which I love (responsible franchising) 

Initial Investment of $136,815 - $197,740 (this is ridiculously low for a franchise - if you wanted to start a Chil-Fil-A you’d need $1-3M of your own money)

Key attributes 

✓ First to market in a niche industry
✓ 30+ years of operating history
✓ Easy staffing model (low employee count)
✓ Corporate marketing support and lead generation
✓ ~50/50 split between residential and commercial
✓ Industry leading equipment - can wash 5 stories high from the floor and complete jobs 3-5x faster (This is the key! This is how you’ll beat all the Chuck in a Trucks)

Competitors 
✓ Local mom & pop businesses
✓ No national franchise brands (yet) 

What I like 

✓ STRONG early success with 60+ territories sold in year 1 
✓ CEO has great previous success in franchising
✓ Corporate lead gen support & commercial accounts 
✓ Competing against mom & pop local operators 
✓ Equipment is far beyond anything mom & pops use which allows for better quality service, speed and capability 

What I don't like 
✓ Very early being in its first year - time will tell if they can support the growth 
✓ Low barriers to entry 
✓ Seasonal business in northern states 

Other Notes/Commentary 
✓ Corporate support - They generated a 29 unit QSR lead for a franchisee to clean quarterly! = $14k/quarter recurring revenue. Rare to see corporate providing this kind of value 
✓ High performing franchisees - A recently zee just did $27k month 1!

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If you want to learn more, check out this podcast this CEO did with the Franchise Wolf.

I think you could hire someone to do the washing for you and you do the marketing and admin along with Rolling Suds’ help.

So what do you think? What do you like or dislike about franchises and this one in particular?

Kriss - Side Hustle Central