Rolling Suds Franchise: Average Sales ($373K) vs. Cost ($136K-$197K)

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Rolling Suds franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Rolling Suds franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Rolling Suds outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Rolling Suds franchise opportunity

Section V – Presentation and analysis of Rolling Suds’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2020, 2021, and 2022 average gross revenue, expenses, and EBITDA per truck for the one Rolling Suds affiliate outlet that has been in operation since 1990 and operates 12 trucks across a wide territory

• 2020, 2021, and 2022 total gross revenue, expenses, and EBITDA for the one Rolling Suds affiliate outlet that has been in operation since 1990 and operates 12 trucks across a wide territory

• 2020, 2021, and 2022 average commercial job size, broken into top 1/3, middle 1/3, and bottom 1/3 averages along with the median job size, for the one Rolling Suds affiliate outlet that has been in operation since 1990 and operates 12 trucks across a wide territory

• 2020, 2021, and 2022 average residential job size, broken into top 1/3, middle 1/3, and bottom 1/3 averages along with the median job size, for the one Rolling Suds affiliate outlet that has been in operation since 1990 and operates 12 trucks across a wide territory

Section VI – Key ratios, comparables, computations, and analyses for the Rolling Suds franchise opportunity (exclusive content for Platinum subscribers)

Section I – Rolling Suds Franchise Costs

• Rolling Suds franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $31,920 to $39,900
• Your Training Expenses:  $1,500 to $3,000
• Initial Equipment Package Fee:  $60,000 to $70,000
• Premises Lease Deposit and First Month’s Rent and Utilities:  $0 to $1,500
• Leasehold Improvements, Construction, and/or Remodeling:  $0 to $1,000
• Branded Vehicle Signage:  $2,500 to $5,000
• Business Licenses and Permits:  $250 to $750
• Technology Systems:  $100 to $2,000
• Initial Inventory to Begin Operating:  $5,545 to $15,090
• Cleaning Solutions:  $1,000 to $3,000
• Service Vehicle:  $1,000 to $3,000
• Professional Fees:  $1,000 to $2,500
• Advertising (3 months):  $6,000 to $7,000
• Insurance:  $1,000 to $4,000
• Operating Expenses/Additional Funds for 3 Months:  $25,000 to $40,000
• Total Estimated Rolling Suds Franchise Costs:  $136,815 to $197,740

Section II – Rolling Suds’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Rolling Suds’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Royalty Fee:  8% of Gross Revenue generated per month; if you fail to achieve the minimum Gross Revenue, Rolling Suds may collect a minimum Royalty.
• Required Minimum Expenditure for Local Marketing and Advertising:  minimum of 4% of Gross Revenue or $2,000 per month, whichever is greater
• Brand Fund Contribution:  2% of monthly Gross Revenue

Section III – Number of Franchised and Company-Owned Rolling Suds Outlets

Franchised

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Rolling Suds Franchise

• Rolling Suds Makes Power Play with Launch of High-Demand Service Franchise Opportunity

• Rolling Suds Strengthens Leadership Teams, Appoints Kevin Houben as Vice President of Operations

• Rolling Suds Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Rolling Suds Franchise (Item 19, 2023 FDD)

• As of the Issuance Date of the Disclosure Document, there is one Rolling Suds outlet open and operating that is owned by the franchisor’s affiliate. This outlet is representative and is included in this disclosure. This outlet is located in Pennsylvania. This affiliate outlet has been in operation since 1990 and operates 12 trucks across a wide territory.

• The reasonable basis for inclusion of this Financial Performance Representation is that this affiliate-owned outlet is similar to the Franchise being offered under the Disclosure Document in terms of operations and services offered. The operational characteristics that make this affiliate-owned outlet different is that it does not pay any Royalty Fees or Brand Fund Contributions to the franchisor, or expend any minimum amount on local advertising.

• This Item 19 sets forth certain historical gross revenue, expenses, and payroll information per truck for the affiliate-owned outlet for 2020-2022. The gross revenue information and expense information set forth in this Item 19 is derived from the affiliate-owned outlet’s accounting software.

Part 1 – Average EBITDA per Truck

2022

Gross Revenue:  $373,305 (100.0%)

Expenses

• Advertising:  $7,155 (1.9%)
• Bank Service Charge:  $0 (0.0%)
• Credit Card Fees:  $2,444 (0.7%)
• Damage Claims:  $2,000 (0.5%)
• Equipment Rental:  $1,571 (0.4%)
• Fuel and Oil:  $14,540 (3.9%)
• GPS Fees:  $275 (0.1%)
• Insurance:  $6,478 (1.7%)
• Internet Expense:  $423 (0.1%)
• Job Materials:  $19,768.25 (5.3%)
• Chemicals:  $12,222.75 (3.3%)
• Licenses and Permits:  $414 (0.1%)
• Lodging:  $612 (0.2%)
• Meals and Entertainment:  $169 (0.0%)
• Parking:  $0 (0.0%)
• Office Expense:  $967 (0.3%)
• Payroll Service Fees:  $188 (0.1%)
• Professional Fees:  $1,020 (0.3%)
• Propane:  $457 (0.1%)
• Rent:  $13,582 (3.6%)
• Repairs and Maintenance:  $2,481 (0.7%)
• Security:  $105 (0.0%)
• Software:  $0 (0.0%)
• Telephone:  $1,018 (0.3%)
• Tolls:  $1,960 (0.5%)
• Truck Repairs:  $3,996 (1.1%)
• Utilities:  $1,113 (0.3%)
• Website:  $817 (0.2%)
• Work Site Utilities:  $335 (0.1%)
• Payroll Expenses Labor:  $78,394 (21.0%)
• Royalty Fee:  $29,864.40 (8.0%)
• Brand Fund Contribution:  $7,466.10 (2.0%)
• Other Franchisee Related Fees:  $14,303.88 (3.8%)
• Total Expenses:  $226,139.38 (60.6%)

EBITDA:  $147,165.62 (39.4%)

2021

Gross Revenue:  $368,180

Expenses

• Advertising:  $9,271.66
• Bank Service Charge:  $37
• Credit Card Fees:  $1,800
• Damage Claims:  $1,750
• Equipment Rental:  $2,035.77
• Fuel and Oil:  $13,184.04
• GPS Fees:  $275
• Insurance:  $8,126.11
• Internet Expense:  $500
• Job Materials:  $15,976.18
• Chemicals:  $11,845.82
• Licenses and Permits:  $525
• Lodging:  $772.38
• Meals and Entertainment:  $213.57
• Parking:  $0
• Office Expense:  $900
• Payroll Service Fees:  $237.51
• Professional Fees:  $1,012
• Propane:  $500
• Rent:  $13,250
• Repairs and Maintenance:  $3,145.03
• Security:  $132.45
• Software:  $59.86
• Telephone:  $1,018
• Tolls:  $1,750
• Truck Repairs:  $1,410.98
• Utilities:  $1,000
• Website:  $1,035
• Work Site Utilities:  $335
• Payroll Expenses Labor:  $77,317.80
• Royalty Fee:  $29,454.40
• Brand Fund Contribution:  $7,363.60
• Other Franchisee Related Fees:  $14,303.88
• Total Expenses:  $220,538.04

EBITDA:  $147,641.96 (40%)

2020

Gross Revenue:  $343,375

Expenses

• Advertising:  $6,241.93
• Bank Service Charge:  $143.38
• Credit Card Fees:  $2,631.29
• Damage Claims:  $1,836
• Equipment Rental:  $2,598.75
• Fuel and Oil:  $8,999.64
• GPS Fees:  $275
• Insurance:  $8,847.85
• Internet Expense:  $337.70
• Job Materials:  $17,777.98
• Chemicals:  $13,678.03
• Licenses and Permits:  $1,393.42
• Lodging:  $100
• Meals and Entertainment:  $100
• Parking:  $100
• Office Expense:  $900
• Payroll Service Fees:  $220
• Professional Fees:  $1,188
• Propane:  $500
• Rent:  $13,000
• Repairs and Maintenance:  $2,830.46
• Security:  $0
• Software:  $73.26
• Telephone:  $900
• Tolls:  $1,619.94
• Truck Repairs:  $2,160
• Utilities:  $1,000
• Website:  $3,000
• Work Site Utilities:  $311.43
• Payroll Expenses Labor:  $72,108.75
• Royalty Fee:  $27,470
• Brand Fund Contribution:  $6,867.50
• Other Franchisee Related Fees:  $14,303.88
• Total Expenses:  $213,514.19

EBITDA:  $129,860.81 (38%)

Part 2 – Overall EBITDA

2022

Gross Revenue:  $2,204,679.85

Expenses

• Advertising:  $51,555.39
• Bank Service Charge:  $ 122
• Credit Card Fees:  $16,957.63
• Damage Claims:  $10,000
• Equipment Rental:  $23,082.45
• Fuel and Oil:  $95,314.73
• Fire Safety:  $101.76
• GPS Fees:  $1,567.41
• Insurance:  $46,274.02
• Internet Expense:  $1,751.80
• Job Materials:  $60,167.05
• Chemicals:  $71,999.65
• Licenses and Permits:  $1,616
• Lodging:  $1,400
• Meals and Entertainment:  $4,000
• Parking:  $549
• Office Expense:  $4,117.26
• Payroll Service Fees:  $1,449
• Professional Fees:  $6,000
• Propane:  $2,241.02
• Rent:  $60,000
• Repairs and Maintenance:  $7,989.31
• Security:  $1,281.50
• Software:  $2,017.47
• Telephone:  $4,459.37
• Tolls:  $8,550.83
• Truck Repairs:  $16,791.77
• Utilities:  $7,653.63
• Website:  $1,200
• Work Site Utilities:  $1,799.26
• Payroll Expenses Labor:  $462,982.77
• Payroll Expenses Office and Management:  $176,374.39 (Note: This figure from the FDD is probably a typo as it’s identical to the Royalty.)
• Royalty:  $176,374.39
• Brand Fund:  $44,093.60
• Other Franchisee Related Fees:  $14,303.88
• Total Expenses:  $1,386,138.34

EBITDA:  $818,541.52 (37%)

2021

Gross Revenue:  $1,999,180.46

Expenses

• Advertising:  $50,389.43
• Bank Service Charge:  $262
• Credit Card Fees:  $10,081.77
• Damage Claims:  $9,500
• Equipment Rental:  $11,063.96
• Fuel and Oil:  $1,652.37
• Fire Safety:  $0
• GPS Fees:  $1,942.10
• Insurance:  $44,163.64
• Internet Expense:  $2,978.73
• Job Materials:  $86,827.09
• Chemicals:  $4,379.44
• Licenses and Permits:  $2,914.50
• Lodging:  $4,197.70
• Meals and Entertainment:  $1,186.50
• Parking:  $0
• Office Expense:  $3,555.73
• Payroll Service Fees:  $1,319.50
• Professional Fees:  $5,500
• Propane:  $3,217.55
• Rent:  $60,000
• Repairs and Maintenance:  $17,472.38
• Security:  $735.85
• Software:  $332.58
• Telephone:  $4,169.67
• Tolls:  $7,603.36
• Truck Repairs:  $25,140.64
• Utilities:  $7,838.76
• Website:  $5,750
• Work Site Utilities:  $2,356.62
• Payroll Expenses Labor:  $419,827.90
• Payroll Expenses Office and Management:  $159,934.44 (Note: This figure from the FDD is probably a typo as it’s identical to the Royalty.)
• Royalty:  $159,934.44
• Brand Fund:  $39,983.61
• Other Franchisee Related Fees:  $14,303.88
• Total Expenses:  $1,300,516.14

EBITDA:  $698,664.32 (35%)

2020

Gross Revenue:  $1,586,756.50

Expenses

• Advertising:  $28,897.82
• Bank Service Charge:  $663.80
• Credit Card Fees:  $12,181.92
• Damage Claims:  $8,500
• Equipment Rental:  $12,031.26
• Fuel and Oil:  $41,665.00
• Fire Safety:  $0
• GPS Fees:  $2,115.10
• Insurance:  $40,962.26
• Internet Expense:  $1,563.42
• Job Materials:  $82,305.47
• Chemicals:   $63,324.22
• Licenses and Permits:  $6,451
• Lodging:  $124.26
• Meals and Entertainment:  $181.15
• Parking:  $458.50
• Office Expense:  $4,278.26
• Payroll Service Fees:  $1,041.25
• Professional Fees:  $5,500
• Propane:  $2,093.57
• Rent:  $42,379.33
• Repairs and Maintenance:  $13,104
• Security:  $0
• Software:  $339.17
• Telephone:  $4,008.46
• Tolls:  $7,499.70
• Truck Repairs:  $10,000
• Utilities:  $5,345.36
• Website:  $10,150
• Work Site Utilities:  $1,441.80
• Payroll Expenses Labor:  $333,218.87
• Payroll Expenses Office and Management:  $126,940.52 (Note: This figure from the FDD is probably a typo as it’s identical to the Royalty.)
• Royalty:  $126,940.52
• Brand Fund:  $31,735.13
• Other Franchisee Related Fees:  $14,303.88
• Total Expenses:  $1,041,745

EBITDA:  $545,011.50 (34%)

Part 3 – Average Job Size

• The following is a chart of the average job size for both commercial and residential jobs for 2020 to 2022. This chart is broken into upper, lower, and middle averages along with the median job size.

Average Commercial Job Size

2022

• Top 1/3:  $13,047.33
• Middle 1/3:  $3,425.58
• Bottom 1/3:  $706.23
• Median:  $3,537.50
• Average:  $5,782

2021

• Top 1/3:  $14,640.04
• Middle 1/3:  $3,319.08
• Bottom 1/3:  $718.94
• Median:  $3,180
• Average:  $6,165.21

2020

• Top 1/3:  $8,119.20
• Middle 1/3:  $1,832.58
• Bottom 1/3:  $459.96
• Median:  $1,590
• Average:  $3,457.68

Average Residential Job Size

2022

• Top 1/3:  $788.99
• Middle 1/3:  $418.47
• Bottom 1/3:  $292.14
• Median:  $424
• Average:  $505

2021

• Top 1/3:  $736.03
• Middle 1/3:  $403.36
• Bottom 1/3:  $281.58
• Median:  $397.50
• Average:  $473.92

2020

• Top 1/3:  $691.39
• Middle 1/3:  $378.98
• Bottom 1/3:  $269.53
• Median:  $371
• Average:  $447.81

• Average truck per working day does $1,821 in revenue. Of the 12 trucks in operation, there are 5 that operate full time. This chart represents the average numbers from the 5 trucks that operate on a full-time basis.

• The Royalty Fee of 8% was not incurred by Rolling Suds’ affiliate location. It is included here for informational purposes only.

• The Brand Fund Contribution of 2% was not incurred by Rolling Suds’ affiliate location. It is included here for informational purposes only.

• Other Franchisee Related Expenses includes: Technology Fee, Business Phone, Call Center Fee, Website Management Fee, and Bookkeeping Services Fee (“Other Franchisee Related Expenses”). These costs are estimated based on the currently charged monthly fee multiplied by 12 to represent a year of Franchisee Related Expenses not incurred by Rolling Suds’ affiliate location. Other Franchisee Related Expenses is not intended to be inclusive of all other costs or fees a franchisee may incur.

• Total Expenses here includes the amounts listed for Royalty Fee, Brand Fund Contribution, and Other Franchisee Related Expenses that were not incurred by Rolling Suds’ affiliate location.

• The EBITDA here includes Royalty Fee, Brand Fund Contribution, and Other Franchisee Related Expenses. The Royalty Fee, Brand Fund Contribution, and Other Franchisee Related Expenses were not incurred by Rolling Suds’ affiliate location.

• The EBITDA % here includes Royalty Fee, Brand Fund Contribution, and Other Franchisee Related Expenses. The Royalty Fee, Brand Fund Contribution, and Other Franchisee Related Expenses were not incurred by Rolling Suds’ affiliate location.

• In 2022, commercial revenue was $1,081,215.20 in work completing 187 jobs and accounted for 54% of revenue. In 2021, commercial revenue was $955,608.26 in work completing 155 jobs and accounted for 47.8% of revenue. In 2020, commercial revenue was $529,024.62 in work completing 153 jobs and accounted for 33.34% of revenue. Commercial job size varies greatly, in 2020-2022, from $300 to $60,000.

• In 2022, residential revenue was $913,646.79 in work completing 1,808 jobs and accounted for 46% of revenue. In 2021, residential revenue was $1,043,572.20 in work completing 2,202 jobs and accounted for 52.2% of revenue. In 2020, residential revenue was $1,057,731.88 in work completing 2,362 jobs and accounted for 66.66% of revenue.

• These results are unaudited.

• These results represent sales of products and services which will be available for franchisees to sell. Rolling Suds’ affiliate outlets have earned this much. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Rolling Suds Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️