How to Acquire 25 Franchise Units in 2.5 Years

Yeah. Great. Guys, let's return now to hearing about some of these other acquisitions. And let's start with. You had just mentioned, Jack, like the.

You started refining the criteria for what you were looking for. Market size was one of them. I think you want to be in markets where there can be at least 10 to have density.

Sure. So, so when we started, we thought we would just be in the Carolinas. At the time, I want to say there were 52 Meineke's in North Carolina, maybe another dozen in South Carolina. So we thought there was a lot of growth via acquisition to do.

We signed a small development agreement with Meineke committing to develop a certain number of sites over the next five years. And we thought that would be the growth rate. Maybe 2/3 acquisition of existing, 1/3 development of new sites.

We've pursued both of those paths in the Carolinas and it continues to be a market where we're adding locations. Six or so months into this, a really unique opportunity in Wisconsin came to our attention. It was a five unit acquisition by Rooftop.

It's the biggest one we've done. We liked it for a couple of reasons. 1, 15 felt like enough to support a strong regional manager.

From the beginning, we felt there was a lot of ways you could grow in Wisconsin. These five, four of them were in Madison, one was in Appleton, but you could go into Milwaukee, you could go into Chicago, you could go towards Green Bay. We, we've done all of that.

We've got nine locations in Wisconsin today. But we also got really excited about the regional manager that was running these stores. We bought it from a husband, wife duo.

They were very active in the business. They did a great job. Probably one of the best, if not the best small franchisees within Meineke at the time.

The regional manager who is supporting them still works with us. He does a lot, not just in his market, but in the Carolinas and Massachusetts as well. So I think we, we like the geography, we like the size, we like the operational support.

And the only other thing I'd say is, you know, Jake mentioned the unit economics on a typical Meineke. These were maybe 30% better than the typical unit economics of a Meineke at acquisition. They've grown a ton.