Interest in eco-friendly franchises has grown significantly in recent years, driven by consumers who value sustainability and caring for the environment.
In this article, we’ll explore three prominent franchises that combine innovation and environmental responsibility: Conserva Irrigation, Filta, and Koala Insulation. Not only do these franchises offer products and services that minimize environmental impact, but they also represent excellent investment opportunities.
If you want to know more details about these options, we invite you to watch our full video where we delve into each of them:
The rise of green franchises in the United States
Before we dive into the specific examples, it’s important to understand why ecofriendly franchises are booming. The main reason is the growing interest from environmentally conscious consumers, especially among younger generations like millennials and Gen Z, who are starting to have greater purchasing power and prefer companies that care for the environment.
Types of sustainable franchises
Today, we’ll focus on three examples of franchises whose essence is to be environmentally friendly: Conserva Irrigation, Filta, and Koala Insulation.
Although there are many other franchises that adopt eco-friendly practices, these three stand out for their main focus on sustainability. Read on to learn more about their business models and profitability in the U.S. market.
Conserva Irrigation Franchise
Conserva Irrigation specializes in the installation, repair, and maintenance of irrigation systems. Although it may seem counterintuitive for an irrigation franchise to be eco-friendly, Conserva reduces water use by up to 70% with its advanced systems.
New franchisees typically start with the maintenance and repair of existing systems, reducing the initial risk.
Conserva’s business model is mobile, and it is operated from an equipped van. This allows franchisees to work from home at the start. However, the franchise is looking for technical profiles, such as engineers or architects, due to the complexity of the work.
The brand is under the umbrella of Empower Brands and has shown steady growth, adding about 15 units per year and reaching an average annual gross turnover of $800,000. Currently, Conserva has 195 open units and a maximum initial investment of $110,000.
Although specific licenses are required to operate that can take anywhere from three to nine months to obtain depending on the state, Conserva has a strong culture of support among its franchisees, who help each other in case of difficulties.
Filta Franchise
Filta offers oil microfiltration services, sale of microfiltered oil for biodiesel, and cleaning and sanitization of commercial kitchens. Filta, originally from England, has a presence in more than 10 countries and is listed on the stock exchange.
Filta also operates with a mobile model and requires 20 to 25 commercial customers to saturate a unit. In addition, it has national contracts with large chains such as Sheraton and Holiday Inn, facilitating the entry of franchisees to large customers.
In the last year, Filta added 17 new franchisees in the United States. The average annual turnover of a franchisee with a single territory is $650,000, while those with several territories reach $1,020,000.
Koala Insulation Franchise
Koala Insulation is dedicated to the installation of insulation to conserve temperature in residential and commercial buildings. Founded in 2018, it began franchising in 2020 and has shown explosive growth.
What we highlight about Koala is that it has added more than 100 new units per year, reaching 420 units by the end of 2023. The number of new units represents the confidence of its franchisees in the profitability of the business. In fact, the average annual turnover for the first year is $940,000, with a net margin of approximately 32%. More than positive being such a young franchise!
Koala Insulation is supported by the Franchise accelerator FastLane, which invests in its growth. The initial investment can reach $219,000, although without financing, these amounts can increase significantly.
*Data as of the date of publication of this article
*Values expressed in US dollars
Explore other eco-friendly franchises
Eco-friendly franchises represent an innovative and sustainable investment opportunity. Conserva Irrigation, Filta, and Koala Insulation not only promote responsible environmental practices, but have also proven to be successful and growing business models. Can you imagine operating any of these franchises?
Remember, before investing in an innovative franchise, make sure it has already been proven in the market to minimize risks. To learn more about green franchises with proven business models, take a look at our portfolio of +750 franchises.
At Interlink FBC, we are ready to help you at every step of the investment process. Contact us for information and personalized advice.
