June’s Franchise of the Month is new to franchising, with a corporate store serving as the proof of concept – and that store has been open since 2006. The founder was a former Blockbuster owner and served as the director of franchise operations for all of Blockbuster nationwide. So he’s earned his franchise chops!
This is a type of retail superstore that sells products to contractors and DIY customers in a very specific and fast-growing niche.
The Basics:
This superstore franchise serves the fastest-growing segment of the construction and remodel industry. Nothing is built without concrete. And making this concrete look beautiful is what this business is all about. The driveways at the Las Vegas hotels may look like cobblestones but they are really stamped concrete, and those colored concrete panels that are used in road construction are integrated colors. This superstore is the source contractors go to, to buy the products to make that happen. The franchisees stores do not do any type of actual install or labor to make decorative concrete. Think — paint stores sell the paint but do not paint the house. But unlike paint stores, in this niche, there is very little competition and that includes stores like Home Depot, Lowes, and Amazon.
Franchisees enjoy a low overhead business model that requires few employees and enjoy the benefits that come with private label products that cannot be purchased anywhere else and at a price that is proven to be extremely competitive.
This is a simple business to operate – located in a warehouse-type location and serving a manageable customer base that you will soon know by their first names. They are the top local contractors in your market.
Day in the life of the franchisee:
Your store opens at 8 am with a typical rush as contractors pick up the products for that day’s jobs. The rush will start just after eight AM and will usually get done before ten, with the second rush being just before closing at five pm. The balance of the day will be spent:
- Helping DYI customers and contractors at checkout
- Helping contractors determine what products they need for upcoming jobs
- Supervising store employees (usually less than three total)
- Inventory management, including ordering, analysis of sales trends, etc.
- Accounting – paying invoices, payroll and checkbook balancing, credit card charges
- Bank deposits
Franchisees will have ample slow periods during the day to enter products into the computer, order new inventory for stock, talk to customers about special projects, and installation issues they may be having, product training for contractors and employees, and help contractors determine how and what kind of products they need for upcoming jobs.
Some of the above tasks are done every day and some are done once per week. As your employees become more knowledgeable, they will be able to assume some of the above tasks.
Lastly, have the weekend off for family, friends, or fishing as your store is not required to be open on Saturdays or Sundays.
Benefits of this business:
- Private labeled products that are unique and most often retail at a price point less than the competition.
- Low fixed overhead with less than four store employees
- Monday thru Friday work week for our stores
- Big box companies like Lowes, Home Depot, and Amazon have a very limited selection of products. And no employees who could tell you how to use, install or stock competing inventory items.
- This business requires little marketing expense outside of grand opening
- The stores are in “Warehouse” type locations which equates to lower location rents.
- The stores have a small customer base. Franchisees will get to know their customers by their first names.
- Average ticket sales are measured in the hundreds of dollars.
- Investor type franchise owners are encouraged. Find an installer who is tired of all the heavy work that comes with the job and this person could be a perfect store manager. They already know Decorative Concrete products.
- Multiple income streams, with product sales, rentals, and training. In 2021 the company store in San Antonio was paid over $40,000 by contractors to provide “Job Site” training for their employees.
- This kind of inventory has a long shelf life, so spoilage is infrequent.
The Money:
Your Minimum Net Worth: $500,000 plus
Franchise Fee: $41,000
Royalty: 6% of the Gross Sales
Total Investment – $250,000 – $325,000 (as per item 7) – but this is likely LOW as they haven’t had franchisees do a buildout in this market environment.
Reach out to us today to learn more about this unique opportunity and see if it’s the right franchise fit for you!
