In 2021 a news story gripped the nation. It was not about Covid-19, or Harry and Meghan’s interview with Oprah, or England reaching the UEFA European Championships final. Instead, it related to a fatberg “the size of a small bungalow” blocking a London sewer. We watched with queasy fascination as the ’berg was dismantled with power tools, and for a few days grease and wet wipes were acceptable topics of conversation. The excitement quickly faded. For those with strong stomachs, however, there is still money to be made from drains, fats and blockages – and Franchise Brands (FRAN) is cashing in.
- Attractive business model
- Very experienced management team
- Fast-growing
- Fairly defensive
- Lots of debt
- Post-acquisition uncertainties
Despite being one of the largest stocks on Aim, Franchise Brands is not covered by many analysts and attracts virtually no media attention. This is not particularly surprising: the group spends its time unblocking drains, fixing hydraulic hoses, and draining grease from industrial ovens. It also has a small business-to-consumer (B2C) arm offering dog-sitting, minor car repairs and – you guessed it – more oven cleaning.