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 2024 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 2024 FDD

Section III – Number of franchised and company-owned Shack Shine 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 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 2024 FDD, including information on the:

• 2023 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 26 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, 2023, grouped by number of months in operation (over 24 months, 12-24 months, and all)

• 2023 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 21 franchised Shack Shine businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2023, grouped by number of months in operation (over 24 months, 12-24 months, and all)

• 2023 total gross revenue for franchised Shack Shine businesses operating in the United States and Canada for at least 1 day in the 2023 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

• Initial Franchise Fee:  $40,000 to $60,000
• Start-Up Marketing Expense:  $15,000 to $20,000
• Computer Hardware and Software:  $1,500 to $2,500
• Seasonal Lights Inventory:  $25,000 to $40,000
• Vehicles and Graphics Lease/Purchase Deposit:  $3,200 to $12,800
• Real Estate/Rent:  $0 to $4,500
• Training Expenses:  $2,350 to $6,200
• Insurance:  $4,000 to $16,000
• Additional Insurance Premiums – Certain States:  $0 to $9,500
• Equipment and Supplies:  $15,000 to $30,000
• Licenses and Permits:  $150 to $500
• Professional Fees:  $1,800 to $2,400
• Employee Expenses:  $5,000 to $10,000
• Additional Funds – 6 to 12 Months:  $45,000 to $55,500
• Total Estimated Shack Shine Franchise Costs:  $158,000 to $269,900

Section II – Shack Shine’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• 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

2021

• Outlets at the Start of the Year:  19
• Outlets at the End of the Year:  30
• Net Change:  +11

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

Company-Owned

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:  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, 2024 FDD)

• In this Item 19, Shack Shine provides information regarding certain historical financial performance for all 26 franchised businesses in the United States and 21 franchised businesses in Canada that were open and operating through at least the last 12 months of the year ending December 31, 2023.

• Shack Shine does not include information from one Canadian and six U.S. franchises that opened during the 2023
  calendar year, as well as 10 U.S. franchises that closed during the 2023 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 2023. 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 12; 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 4; the median number of subterritories owned is 2.

• 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 2023)

Franchisees Operating Over 24 Months (U.S. Dollars)

• Number of Franchisees in Range:  20 of 26
• Total Gross Revenue:  $10,056,860

• Average Gross Revenue:  $502,843
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  8/40%
• Median Gross Revenue:  $417,322
• Highest Gross Revenue:  $1,533,903
• Lowest Gross Revenue:  $81,966
• Average Gross Revenue of Top 25%:  $1,078,171
• Average Gross Revenue of Bottom 25%:  $107,433

• Average Job Size:  $829
• Number and Percentage of Franchisees at or Above Average Job Size:  12/60%
• Median Job Size:  $851

• Average Gross Revenue Per Subterritory:  $199,113
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  9/45%
• Median Gross Revenue Per Subterritory:  $161,350
• Highest Gross Revenue Per Subterritory:  $502,655
• Lowest Gross Revenue Per Subterritory:  $12,617

Franchisees Operating 12-24 Months (U.S. Dollars)

• Number of Franchisees in Range:  6 of 26
• Total Gross Revenue:  $1,012,374

• Average Gross Revenue:  $168,729
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  3/50%
• Median Gross Revenue:  $144,520
• Highest Gross Revenue:  $381,330
• Lowest Gross Revenue:  $49,672
• Average Gross Revenue of Top 25%:  $281,724
• Average Gross Revenue of Bottom 25%:  $79,943

• Average Job Size:  $30 (Note: This is clearly a typo in Shack Shine’s 2024 FDD.)
• Number and Percentage of Franchisees at or Above Average Job Size:  3/50%
• Median Job Size:  $769

• Average Gross Revenue Per Subterritory:  $81,303
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  3/50%
• Median Gross Revenue Per Subterritory:  $72,260
• Highest Gross Revenue Per Subterritory:  $190,665
• Lowest Gross Revenue Per Subterritory:  $24,836

All Franchisees (U.S. Dollars)

• Number of Franchisees in Range:  26
• Total Gross Revenue:  $11,069,234

• Average Gross Revenue:  $425,740
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  9/35%
• Median Gross Revenue:  $255,929
• Highest Gross Revenue:  $1,533,903
• Lowest Gross Revenue:  $49,672
• Average Gross Revenue of Top 25%:  $977,033
• Average Gross Revenue of Bottom 25%:  $95,695

• Average Job Size:  $806
• Number and Percentage of Franchisees at or Above Average Job Size:  15/58%
• Median Job Size:  $843

• Average Gross Revenue Per Subterritory:  $171,926
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  11/42%
• Median Gross Revenue Per Subterritory:  $127,964
• Highest Gross Revenue Per Subterritory:  $502,655
• Lowest Gross Revenue Per Subterritory:  $12,617

Part 2 – Canadian Franchisees (Calendar Year 2023)

• Exchange rates from Canadian to U.S. Dollars ranged from 0.7207 to 0.7617 during calendar year 2023, with the period average exchange rate being 0.7410.

Franchisees Operating Over 24 Months (Canadian Dollars)

• Number of Franchisees in Range:  18 of 21
• Total Gross Revenue:  $11,986,438

• Average Gross Revenue:  $665,913
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  8/44%
• Median Gross Revenue:  $581,035
• Highest Gross Revenue:  $1,445,911
• Lowest Gross Revenue:  $143,706
• Average Gross Revenue of Top 25%:  $1,184,123
• Average Gross Revenue of Bottom 25%:  $259,897

• Average Job Size:  $794
• Number and Percentage of Franchisees at or Above Average Job Size:  6/33%
• Median Job Size:  $749

• Average Gross Revenue Per Subterritory:  $242,534
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  8/44%
• Median Gross Revenue Per Subterritory:  $222,497
• Highest Gross Revenue Per Subterritory:  $722,956
• Lowest Gross Revenue Per Subterritory:  $41,495

Franchisees Operating 12-24 Months (Canadian Dollars)

• Number of Franchisees in Range:  3 of 21
• Total Gross Revenue:  $1,409,421

• Average Gross Revenue:  $469,807
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  1/33%
• Median Gross Revenue:  $355,972
• Highest Gross Revenue:  $711,312
• Lowest Gross Revenue:  $342,137
• Average Gross Revenue of Top 25%:  $711,312
• Average Gross Revenue of Bottom 25%:  $342,137

• Average Job Size:  $744
• Number and Percentage of Franchisees at or Above Average Job Size:  1/33%
• Median Job Size:  $720

• Average Gross Revenue Per Subterritory:  $374,881
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  1/33%
• Median Gross Revenue Per Subterritory:  $342,137
• Highest Gross Revenue Per Subterritory:  $711,312
• Lowest Gross Revenue Per Subterritory:  $71,194

All Franchisees (Canadian Dollars)

• Number of Franchisees in Range:  21
• Total Gross Revenue:  $13,395,859

• Average Gross Revenue:  $637,898
• Number and Percentage of Franchisees at or Above Average Gross Revenue:  9/43%
• Median Gross Revenue:  $552,821
• Highest Gross Revenue:  $1,445,911
• Lowest Gross Revenue:  $143,706
• Average Gross Revenue of Top 25%:  $1,184,123
• Average Gross Revenue of Bottom 25%:  $273,604

• Average Job Size:  $787
• Number and Percentage of Franchisees at or Above Average Job Size:  8/38%
• Median Job Size:  $747

• Average Gross Revenue Per Subterritory:  $261,440
• Number and Percentage of Franchisees at or Above Average Gross Revenue Per Subterritory:  8/38%
• Median Gross Revenue Per Subterritory:  $241,911
• Highest Gross Revenue Per Subterritory:  $722,956
• Lowest Gross Revenue Per Subterritory:  $41,495

Part 3 – Total 2023 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 2023 calendar year.

• United States:  $11,837,854
• Canada:  $9,987,250

• This chart includes all 65 franchises operating for at least 1 day during 2023, including 15 locations that did not operate for the full 2023 calendar year.

• The Gross Revenue figure in Canadian Dollars ($13,478,070) was converted using the calendar year 2023 average exchange rate of 0.7410 for Canadian to U.S. Dollars, which rate ranged from 0.7207 to 0.7617 during calendar year 2023, and was 0.7561 on December 31, 2023.

• 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) ⬇️