In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Shack Shine franchise, based on Item 7 of the company’s 2025 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Shack Shine franchise, based on Items 5 and 6 of the company’s 2025 FDD
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Section IV – News updates on the Shack Shine franchise opportunity
Section V – Presentation and analysis of Shack Shine’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:
- 2024 average, median, highest, and lowest gross revenue; average gross revenue of the top 25% and bottom 25%; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 22 franchised Shack Shine businesses in the United States that were open and operating through at least the last 12 months of the year ending December 31, 2024, grouped by number of months in operation (over 24 months, 12-24 months, and all)
- 2024 average, median, highest, and lowest gross revenue; average gross revenue of the top 25% and bottom 25%; average and median job size; average and median gross profit margin; and average, median, highest, and lowest gross revenue per subterritory for the 19 franchised Shack Shine businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2024, grouped by number of months in operation (over 24 months, 12-24 months, and all)
- 2024 total gross revenue for franchised Shack Shine businesses operating in the United States and Canada for at least 1 day in the 2024 calendar year
Section VI – Key ratios, comparables, computations, and analyses for the Shack Shine franchise opportunity (exclusive content for Platinum subscribers)
Section I – Shack Shine Franchise Costs
- Shack Shine franchise costs, based on Item 7 of the company’s 2025 FDD:
- Initial Franchise Fee: $40,000 to $60,000
- Start-Up Marketing Expense: $15,000 to $20,000
- Computer Hardware and Software: $1,500 to $3,000
- Seasonal Lights Inventory: $25,000 to $40,000
- Vehicles and Graphics Lease/Purchase Deposit: $4,800 to $12,800
- Real Estate/Rent: $0 to $4,500
- Training Expenses: $3,000 to $7,500
- Insurance: $6,000 to $25,000
- Additional Insurance Premiums – Certain States: $0 to $9,500
- Equipment and Supplies: $15,000 to $30,000
- Licenses and Permits: $250 to $1,500
- Professional Fees: $2,000 to $5,000
- Employee Expenses: $5,000 to $10,000
- Additional Funds – 6 to 12 Months: $45,000 to $55,000
- Total Estimated Shack Shine Franchise Costs: $162,550 to $283,800
Section II – Shack Shine’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Shack Shine’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:
- Initial Fee: $40,000 to $60,000
- Royalty: 8% of Gross Revenue
- Minimum Royalty: depending upon your year of operation, the Minimum Royalty will range from $5,000 to $8,000 multiplied by the number of subterritories in your Territory, per calendar year. The amount payable is the amount the Minimum Royalty for that year exceeds the total of all Royalties actually received by Shack Shine for that year from that Territory. In the first year of operation, if Scheduled Opening Date is after September 1st, then Minimum Royalty will be assessed beginning in the following calendar year.
- Sales, Marketing & Technology Fee: 8% of Gross Revenue
- Digital Marketing Programs Fee: at least 5% of Gross Revenue per quarter, but not more than the minimum required local marketing and promotions expenditure, which ranges from 8% to 13% depending on the year of operation
- Branding Cooperative: up to 5% of Gross Revenue in aggregate
Section III – Number of Franchised and Company-Owned Shack Shine Outlets
Franchised
2022
- Outlets at the Start of the Year: 30
- Outlets at the End of the Year: 35
- Net Change: +5
2023
- Outlets at the Start of the Year: 35
- Outlets at the End of the Year: 31
- Net Change: -4
2024
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- Outlets at the End of the Year: 23
- Net Change: -8
Company-Owned
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: 0
- Net Change: 0
2024
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Shack Shine Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Shack Shine Franchise (Item 19, 2025 FDD)
- In this Item 19, Shack Shine provides information regarding certain historical financial performance for all 22 franchised businesses in the United States and 19 franchised businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2024.
- Shack Shine does not include information from 1 U.S. franchise that opened during the 2024 calendar year, as well as 9 U.S. franchises and 3 Canadian franchises that closed during the 2024 calendar year, because they were not in operation for the entire year.
- The charts below reflect average, median, highest, and lowest Gross Revenue figures for 2024. Average and median Job Size is also included.
- For purposes of these charts, franchisees are grouped into franchised businesses open longer than 24 months and those open between 12 and 24 months.
- Because Shack Shine franchisees own different numbers of subterritories, Shack Shine also provides in the charts below the franchisee average, median, highest, and lowest Gross Revenue on a per-subterritory basis.
- Of the U.S. franchisees reported in the charts below: the average number of subterritories owned is 3, with the fewest number owned being 2, and the largest number owned being 11; the median number of subterritories owned is 2.
- Of the Canadian franchisees reported in the charts below: the average number of subterritories owned is 3, with the fewest number owned being 1, and the largest number owned being 5; the median number of subterritories owned is 3.
- Unless otherwise specified, “Gross Revenue” means the actual gross revenues billed to consumers for products and services, less taxes collected and credits or refunds given in accordance with Shack Shine’s refund policy.
- “Job Size” means the Gross Revenue attributable to the Services and Products ordered from a single dwelling that can be completed in one job.
- Shack Shine includes franchised businesses in Canada in this Item 19 because these Canadian franchisees operate businesses that are substantially similar to those in the U.S., with substantially similar performance results and no material differences between the data of the two groups other than the currency.
- The information in this Item 19 is based upon financial information franchisees reported to Shack Shine by its franchisees.
- The average is calculated by adding all figures up and dividing by the number of figures counted. The median is calculated by placing all figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.
- The U.S. Franchisees chart is reported in USD, and the Canadian Franchisees chart is reported in CAD.
Part 1 – U.S. Franchisees (Calendar Year 2024)
Franchisees Operating Over 24 Months (U.S. Dollars)
- Number of Franchisees in Range: 19 of 22
- Total Gross Revenue: $11,243,495
- Average Gross Revenue: $591,763
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 6/32%
- Median Gross Revenue: $451,716
- Highest Gross Revenue: $1,865,195
- Lowest Gross Revenue: $81,948
- Average Gross Revenue of Top 25%: $1,238,026
- Average Gross Revenue of Bottom 25%: $134,786
- Average Job Size: $649
- Number and Percentage of Franchisees at or Above Average Job Size: 8/42%
- Median Job Size: $647
- Average Gross Revenue Per Subterritory: $77,760
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 8/42%
- Median Gross Revenue Per Subterritory: $56,697
- Highest Gross Revenue Per Subterritory: $220,666
- Lowest Gross Revenue Per Subterritory: $10,375
Franchisees Operating 12-24 Months (U.S. Dollars)
- Number of Franchisees in Range: 3 of 22
- Total Gross Revenue: $611,579
- Average Gross Revenue: $203,860
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 2/67%
- Median Gross Revenue: $222,253
- Highest Gross Revenue: $254,935
- Lowest Gross Revenue: $134,391
- Average Gross Revenue of Top 25%: $254,935
- Average Gross Revenue of Bottom 25%: $134,391
- Average Job Size: $762
- Number and Percentage of Franchisees at or Above Average Job Size: 2/67%
- Median Job Size: $792
- Average Gross Revenue Per Subterritory: $27,498
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 1/33%
- Median Gross Revenue Per Subterritory: $19,242
- Highest Gross Revenue Per Subterritory: $48,696
- Lowest Gross Revenue Per Subterritory: $14,557
All Franchisees (U.S. Dollars)
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- Total Gross Revenue: $11,855,074
- Average Gross Revenue: $538,867
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 7/32%
- Median Gross Revenue: $419,190
- Highest Gross Revenue: $1,865,195
- Lowest Gross Revenue: $81,948
- Average Gross Revenue of Top 25%: $1,178,879
- Average Gross Revenue of Bottom 25%: $134,720
- Average Job Size: $664
- Number and Percentage of Franchisees at or Above Average Job Size: 9/41%
- Median Job Size: $648
- Average Gross Revenue Per Subterritory: $70,906
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 9/41%
- Median Gross Revenue Per Subterritory: $51,160
- Highest Gross Revenue Per Subterritory: $220,666
- Lowest Gross Revenue Per Subterritory: $10,375
Part 2 – Canadian Franchisees (Calendar Year 2024)
- Exchange rates from Canadian to U.S. Dollars ranged from 0.6922 to 0.7550 during calendar year 2024, with the period average exchange rate being 0.7302.
Franchisees Operating Over 24 Months (Canadian Dollars)
- Number of Franchisees in Range: 7 of 19
- Total Gross Revenue: $11,675,299
- Average Gross Revenue: $686,782
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 7/41%
- Median Gross Revenue: $513,120
- Highest Gross Revenue: $1,609,437
- Lowest Gross Revenue: $274,961
- Average Gross Revenue of Top 25%: $1,305,302
- Average Gross Revenue of Bottom 25%: $338,089
- Average Job Size: $736
- Number and Percentage of Franchisees at or Above Average Job Size: 7/41%
- Median Job Size: $692
- Average Gross Revenue Per Subterritory: $121,807
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 7/41%
- Median Gross Revenue Per Subterritory: $74,416
- Highest Gross Revenue Per Subterritory: $407,619
- Lowest Gross Revenue Per Subterritory: $16,896
Franchisees Operating 12-24 Months (Canadian Dollars)
- Number of Franchisees in Range: 2 of 19
- Total Gross Revenue: $1,196,728
- Average Gross Revenue: $598,364
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 1/50%
- Median Gross Revenue: $598,364
- Highest Gross Revenue: $609,075
- Lowest Gross Revenue: $587,653
- Average Gross Revenue of Top 25%: $609,075
- Average Gross Revenue of Bottom 25%: $587,653
- Average Job Size: $960
- Number and Percentage of Franchisees at or Above Average Job Size: 1/50%
- Median Job Size: $960
- Average Gross Revenue Per Subterritory: $120,940
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 1/50%
- Median Gross Revenue Per Subterritory: $120,940
- Highest Gross Revenue Per Subterritory: $153,222
- Lowest Gross Revenue Per Subterritory: $88,659
All Franchisees (Canadian Dollars)
- Number of Franchisees in Range: 19
- Total Gross Revenue: $12,872,027
- Average Gross Revenue: $677,475
- Number and Percentage of Franchisees at or Above Average Gross Revenue: 7/37%
- Median Gross Revenue: $587,653
- Highest Gross Revenue: $1,609,437
- Lowest Gross Revenue: $274,961
- Average Gross Revenue of Top 25%: $1,229,328
- Average Gross Revenue of Bottom 25%: $353,710
- Average Job Size: $760
- Number and Percentage of Franchisees at or Above Average Job Size: 9/47%
- Median Job Size: $723
- Average Gross Revenue Per Subterritory: $121,716
- Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory: 8/42%
- Median Gross Revenue Per Subterritory: $88,659
- Highest Gross Revenue Per Subterritory: $407,619
- Lowest Gross Revenue Per Subterritory: $16,896
Part 3 – Total 2024 Gross Revenue of Shack Shine Franchisees (Reported in US Dollars)
- The information provided below was compiled from all the Shack Shine Franchised Businesses operating in the United States and Canada for at least 1 day in the 2024 calendar year.
- United States: $12,252,532
- Canada: $10,138,850
- This chart includes all 65 franchises operating for at least 1 day during 2024, including 15 locations that did not operate for the full 2024 calendar year.
- The Gross Revenue figure in Canadian Dollars ($12,872,027) was converted using the calendar year 2024 average exchange rate of 0.7302 for Canadian to U.S. Dollars, which rate ranged from 0.6922 to 0.7550 during calendar year 2024, and was 0.6948 on December 31, 2024
- Some franchises have earned this amount. Your individual results may differ. There is no assurance you will earn as much.
Section VI – Shack Shine Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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