Rolling Suds: $422K Average Sales vs. $182K-$291K Franchise Cost

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 2024 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 2024 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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 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 2024 FDD, including information on the:

• 2023 average gross revenue, expenses, and EBITDA per truck for the one Rolling Suds affiliate outlet that has been in operation since 1990 and across a wide territory

• 2023 total gross revenue, expenses, and EBITDA for the one Rolling Suds affiliate outlet that has been in operation since 1990 and across a wide territory

• 2023 average commercial job size, broken into top 1/3, middle 1/3, and bottom 1/3 averages along with the median job size, total commercial revenue, number of jobs, and percent of total revenue for the one Rolling Suds affiliate outlet that has been in operation since 1990 and across a wide territory

• 2023 average residential job size, broken into top 1/3, middle 1/3, and bottom 1/3 averages along with the median job size, total residential revenue, number of jobs, and percent of total revenue for the one Rolling Suds affiliate outlet that has been in operation since 1990 and 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 2024 FDD:

• Initial Franchise Fee:  $54,900
• Your Training Expenses:  $1,500 to $3,000
• Down Payment on Service Vehicle:  $10,000 to $50,000
• Down Payment on Sales Vehicle:  $0 to $10,000
• New Business Set:  $60,000
• Premises Lease Deposit and First Month’s Rent and Utilities:  $4,000 to $8,000
• Leasehold Improvements, Construction, and/or Remodeling:  $0 to $1,000
• Business Licenses and Permits:  $150 to $500
• Technology Systems:  $100 to $1,200
• Shop Kit Inventory Package:  $12,500 to $16,000
• Cleaning Solutions:  $1,000 to $3,000
• Service Vehicle Financing Monthly Payment:  $4,500 to $7,500
• Sales Vehicle:  $0 to $1,500
• Professional Fees:  $1,000 to $2,500
• Local Advertising (3 months):  $7,500 to $8,500
• Insurance:  $1,000 to $4,000
• Operating Expenses/Additional Funds for 3 Months:  $30,000 to $55,000
• Total Estimated Rolling Suds Franchise Costs:  $182,650 to $291,100

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 2024 FDD:

• Initial Franchise Fee:  $54,900

• 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 $2,500 per truck per month, whichever is greater

• Brand Fund Contribution:  2% of monthly Gross Revenue; if you fail to achieve the minimum Gross Revenue, Rolling Suds may collect a minimum Brand Fund Contribution

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

Franchised

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

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  7
• Net Change:  +7

Company-Owned

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

2023

• 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

• This CEO Is on a Mission to Grow His Business Ethically While Fighting an Industry Crisis

• Rolling Suds Continues to Ride the Wave of Success, Awards 42 Territories to 14 New Franchisees

• Rolling Suds Aligns with Franchising Veteran David Barr in Strategic Investment as Development Surges

• Rolling Suds: Redefining the Franchise Industry by Focusing on Responsible Franchising, One Franchisee at a Time

• From Filthy to Fabulous: Rolling Suds Blasting Its Way to Success

• 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 Taps Industry Expert J.T. Thiessen as Chief Development Officer, Sparks Partnership for Top-Secret Project

• Rolling Suds Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Rolling Suds Franchise (Item 19, 2024 FDD)

• This Item contains a historic financial performance representation about Rolling Suds’ existing affiliate-owned outlet in 2023.

• As of December 31, 2023, Rolling Suds had 7 total franchised outlets in operation and one affiliate-owned outlet in operation. 7 franchised outlets were excluded because they were new to the system and were not open for a full year.

• As of December 31, 2023, there is one Rolling Suds outlet open and operating that is owned by Rolling Suds’ 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 across a wide territory.

• In fiscal year 2023, the affiliate-owned outlet operated 4 trucks on a full-time basis with 1-2 additional trucks supplementing the fleet as needed during peak periods.

• 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 operates without any territorial restrictions, other than not encroaching on franchisee territories, and does not pay any Royalty Fees or Brand Fund Contributions to Rolling Suds, 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 2023.

• 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

2023

Gross Revenue:  $422,915.00* (100.0%)

Expenses

• Bank Service Charge:  $19.59 (0.0%)
• Credit Card Fees:  $2,267.72 (0.5%)
• Damage Claims:  $1,091.86 (0.3%)
• Equipment Rental:  $1,497.58 (0.4%)
• Fuel and Oil:  $17,671.07 (4.2%)
• Insurance:  $12,271.53 (2.9%)
• Internet Expense:  $403.84 (0.1%)
• Chemicals:  $21,967.47 (5.2%)
• Licenses and Permits:  $1,067.17 (0.3%)
• Lodging:  $526.43 (0.1%)
• Meals and Entertainment:  $269.53 (0.1%)
• Parking:  $3.16 (0.0%)
• Office Expense:  $588.04 (0.1%)
• Professional Fees:  $1,263.42 (0.3%)
• Propane:  $479.70 (0.1%)
• Rent:  $15,000 (3.5%)
• Security:  $0 (0.0%)
• Tolls:  $2,300.48 (0.5%)
• Utilities:  $1,937.98 (0.5%)
• Work Site Utilities:  $0 (0.0%)
• Payroll Expenses Labor:  $92,191.35 (21.8%)
• Royalty Fee:  $33,833.20 (8.0%)
• Brand Fund Contribution:  $8,458.30 (2.0%)
• Other Franchisee Related Fees:  $15,443.88 (3.7%)
• Local Marketing/Ad Spend:  $30,000.00 (7.1%)
• Total Expenses:  $260,581.30 (61.6%)

EBITDA:  $162,333.70 (38.4%)

*Gross Revenue in 2023 for both the Average EBITDA Per Full Time Truck chart and Overall EBITDA, omits accounts receivable in the amount of $146,741.58.

Part 2 – Overall EBITDA

2023

Gross Revenue:  $2,008,339.79 (100.0%)

Expenses

• Bank Service Charge:  $93.01 (0.0%)
• Credit Card Fees:  $10,769.45 (0.5%)
• Damage Claims:  $5,185.25 (0.3%)
• Equipment Rental:  $7,112.05 (0.4%)
• Fuel and Oil:  $83,920.15 (4.2%)
• Fire Safety:  $106.00 (0.0%)
• Insurance:  $58,277.66 (2.9%)
• Internet Expense:  $1,917.84 (0.1%)
• Chemicals:  $104,323.85 (5.2%)
• Licenses and Permits:  $5,068.00 (0.3%)
• Lodging:  $2,500.00 (0.1%)
• Meals and Entertainment:  $1,280.00 (0.1%)
• Parking:  $15.00 (0.0%)
• Office Expense:  $2,792.62 (0.1%)
• Professional Fees:  $6,000 (0.3%)
• Propane:  $2,278.12 (0.1%)
• Rent:  $60,000 (3.0%)
• Security:  $0 (0.0%)
• Tolls:  $10,925.00 (0.5%)
• Utilities:  $9,203.49 (0.5%)
• Work Site Utilities:  $0 (0.0%)
• Payroll Expenses Labor:  $469,807.74 (23.4%)
• Payroll Expenses Office and Management:  $159,476.02 (7.9%)
• Royalty Fee:  $160,667.18 (8.0%)
• Brand Fund Contribution:  $40,166.80 (2.0%)
• Other Franchisee Related Fees:  $15,443.88 (0.8%)
• Local Marketing/Ad Spend:  $120,000.00 (6.0%)
• Total Expenses:  $1,337,329.11 (66.6%)

EBITDA:  $671,010.68 (33.4%)

Part 3 – Average Job Size

• The following is a chart of the average job size for both commercial and residential jobs for 2023. This chart is broken into upper, lower, and middle averages along with the median job size.

• This chart also includes the total revenues collected from commercial and residential jobs along with the total number of jobs completed and a percentage of total revenue.

Average Commercial Job Size

2023

• Top 1/3:  $12,702.20
• Middle 1/3:  $2,831.90
• Bottom 1/3:  $817.38
• Median:  $2,600.00
• Average:  $5,316.53
• Total Commercial Revenue:  $1,206,852.31
• Number of Jobs:  227
• Percent of Total Revenue:  56.01%

Average Residential Job Size

2023

• Top 1/3:  $738.68
• Middle 1/3:  $413.29
• Bottom 1/3:  $314.47
• Median:  $400.00
• Average:  $489.03
• Total Residential Revenue:  $948,229.05
• Number of Jobs:  1,939
• Percent of Total Revenue:  43.99%

• Excluded from Expenses are the purchase of job materials beyond what was needed for the operation of the business in any particular year, repairs and maintenance of the equipment, telephone, truck repairs, and cost of the website.

• Telephones and the cost of website are included in “Other Franchisee Related Fees”.

• The cost of truck repairs and maintenance of equipment has been excluded as the affiliate-owned outlet’s fleet and equipment is older than what a Franchisee will be operating.

• 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 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.

• These results are unaudited.

• These results represent sales of products and services which will be available for Franchisees to sell.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

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