To read the first part of my interview with Sean Cochrane, president of SuperGreen Solutions, please click here.
Franchise Chatter (FC): What is the ideal location and geographic territory for a SuperGreen Solutions store?
Sean Cochrane (SC): Pretty much every place is ideal, since literally anyone who wants to save money on energy bills or save their grandchildren and the planet from choking in greenhouse gas emissions can be our ideal customer!
To be specific though, we have found that we are looking for store locations with good parking, high traffic volumes, and visibility. We want to be easy to get to for the soccer mom, the builder, and the business owner.
FC: What are the factors that contribute the most to the success of a SuperGreen Solutions store?
SC: We know the business model is solid so what success really comes down to is the franchisee running the store. We know they don’t need a certain background, business experience, or life experience. Our extensive training program ensures that each SuperGreen Solutions franchisee has the tools and knowledge necessary to run their store.
What they do need to ensure success is a passion and drive to make a difference. They need to have a deep entrepreneurial spirit with a willingness to be trained and follow the system in the store’s day-to-day operation. We find this over and over again across all of our brands. Passionate franchisees with a drive to succeed and follow the system are always the most successful.
Most people who are interested in SuperGreen Solutions are looking for an opportunity to benefit from their own hard work, in an industry they can embrace. They are looking for a chance to run a profitable business and benefit from the work they put into it. They will find that with us.
Other franchise companies often sell lower ticket items, long hours, and small margins. With SuperGreen Solutions, we thrive on reaching a wide audience while targeting large invoice business customers. Everyone uses energy and wants to save money. Showing our customers how to save money while doing the right thing for the environment is a very rewarding way to make a living.
FC: What can you tell us about the estimated initial investment, royalty fee, and profit potential for a SuperGreen Solutions franchise?
SC: The total investment for a SuperGreen Solutions franchise is between $135,000 and $150,000 and we can assist you with financing, making the initial investment around $50,000 to $60,000. We offer a 10% discount for eligible United States military veterans who received an honorable discharge.
Our royalty structure is more of an incentive program — the more you sell, the less you pay. It starts with a minimum of $500 per month during the first year of business and is then based on a sliding scale that actually decreases as you make more money.
- 5% – up to $999,999 in sales
- 4% – $1,000.000-$1,999,999
- 3% – $2,000,000 and up
The potential for SuperGreen Solutions is what makes this brand so attractive. For example, consider the operating results of the flagship SuperGreen Solutions store in North Palm Beach, Florida, which opened on August 5, 2011. The gross revenues and net operating profit before income taxes and depreciation of this store during its first eight-month period are listed below:
Gross Revenues: $776,341
Net Operating Profit: $142,986 (before depreciation and incomes taxes)
Of course, the gross revenues and net operating profit for your SuperGreen Solutions store for its opening months are likely to differ from the amounts shown above. Your actual results will vary depending upon a number of factors, including the location of the store, local market conditions, your management skills and experience, and the type of products and services you offer at your store. More information can also be made available to you through our FDD upon request.
FC: Can you name a few franchises (inside or outside your category) that you admire, and why?
SC: I’m fortunate that I don’t have to look far to find franchises that I admire — there are many right under the roof in our corporate office. It’s inspiring to see how large SIGNARAMA has grown. As the biggest sign franchise in the world, SIGNARAMA sets the example of how to grow without losing sight of the franchisee, the customer, or the community. In fact, SuperGreen Solutions is partnering with SIGNARAMA in a venture with Habitat for Humanity so we can give back and make a real difference.
FC: What are your growth plans for SuperGreen Solutions in 2012 and beyond?
SC: Based on the success of our flagship store in Florida, we’ve developed targeted growth plans both here in the U.S. and globally. We plan to open 12-18 stores this year in the U.S., with another 85 planned for 2013. We have identified about 350 potential locations for SuperGreen Solutions stores here in America so there is plenty of opportunity for this brand to expand in markets that are eager for energy efficient solutions.
We are also offering International Master License Partnerships. We already have interest from potential partners in a few countries and we expect that to grow as well.
FC: Is there anything else you wish to share about SuperGreen Solutions?
SC: SuperGreen Solutions offers an outstanding business opportunity that is truly environment-friendly. The combination of my green industry knowledge and the franchise knowledge of the United Franchise Group makes this one great model.
SuperGreen Solutions is more than just a business. It’s a movement to preserve the environment, offer energy solutions, and improve the future of our world for generations to come, while also creating great wealth for our successful owners. It’s truly a triple bottom line company: products, planet, and profit.