finnCap Cavendish appointed to conduct the sale of ChipsAway, Ovenclean and Barking Mad
Franchise Brands plc, an international multi-brand franchisor, has appointed finnCap Cavendish to conduct the sale of its business-to-consumer (B2C) division of home service franchise brands comprising ChipsAway, Ovenclean and Barking Mad.
The three brands have approximately 350 franchisees in the UK serving a loyal, affluent customer base says Franchise Brands, highlighting the quality of its services with each brand earning a 4.9 Trustpilot rating on the customer review platform.
Franchise Brands B2C business is operated throughout the UK on a standalone basis by a management team based in Kidderminster, Worcestershire.
The group said its business delivered system sales of around £25m, revenue of £6.3m and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of £2.5m in 2022, representing a 39 per cent EBITDA margin, which builds on its track record of consistently high EBITDA.
As a capital-light business, Franchise Brands adds that it has consistently generated high levels of cash with an average 91 per cent cash conversion over the period 2020-22, and has considerable operating leverage given its small fixed-overhead base.
The three brands
ChipsAway with 191 franchisees accounted for 80 per cent of the B2C division’s 2022 EBITDA. Founded in 1994 the mobile car paintwork repair specialist also has car care centres and fixed unit facilities for more specialist vehicle repairs.
Ovenclean has over 100 franchisees accounting for 12 per cent of the B2C division’s 2022 EBITDA. Founded in 1994, the oven cleaning business uses specialist equipment and environmentally friendly products for cleaning all types of domestic ovens.
Barking Mad with 58 franchisees accounted for 8 per cent of the B2C division’s 2022 EBITDA. Founded in 2000, it provides ‘home from home’ dog boarding services, giving peace of mind to dog owners whose pets are not suited to the traditional multi-boarding environment.
The brands have multiple growth avenues says the franchisor, including franchise recruitment, expansion of existing franchisees into additional territories and to further increase conversion of consumer leads.
The sale comes following a strategic review which resulted in Franchise Brands focusing on its considerable growth opportunities in its business-to-business (B2B) division comprising Metro Rod, Metro Plumb, Filta and Willow Pumps, which accounts for over 84 per cent of its EBITDA.
Stephen Hemsley, executive chairman, commented: “As three leading, well-established brands with strong, trusted reputations amongst an affluent customer base and national coverage, ChipsAway, Ovenclean and Barking Mad are well positioned to capture the opportunities in their large markets.
“While our focus is on B2B, the larger part of our business, we believe the sale of these businesses presents an opportunity for a new owner to work with its fantastic team to drive the business forward and capitalise on its considerable potential.”
Franchise Brands currently has a combined network of nearly 600 franchisees across the UK, North America and Europe.