280+ Franchises and growing!
ACFN Welcomes 6 New Franchisees!!
ACFN Welcomes 6 New Franchisee !!
Congratulations and best of luck New Franchisees
Mouris P IL
Ralph G NM
Eric L PA
Abdihakin H WA
Mike Sn NJ
Meeta B DC
As most of you know we signed a deal in April to acquire one of our long term competitors. After a competitive bid ACFN secured the acquisition and we put the deal in escrow in early April. The list of assets for sale included 330 hotels with an average of 480 rooms - a very high quality portfolio of hotels.
We have been in contact with many of you presenting the locations, historical transaction information, estimated earnings as a franchisee, cost to acquire, capital required to operate etc. and I am glad to report that as of this writing:
- 214 locations have transferred to franchisees
- 50 more are on the schedule to transfer in August
- 40 locations are still looking for a home – see list at the end of this article
If you know anyone that you think may be interested in joining our business to benefit from the remaining acquisition locations remember that there is a $5,000 referral fee for you!
I want to personally thank all the franchisees that decided to take advantage of this opportunity to grow their ACFN business. The financial benefits to participating franchisees are significant and the addition of this portfolio of hotels to our own establishes ACFN more than ever as the undisputed top provider of ATM services to the hospitality industry. A few notes:
- $2,300,000 per year - increase in earnings for all franchisees combined
- 1,650 – Number of hotels in our portfolio which is approximately 35% of the 5,000 qualified hotels in the US. This will continue to build our leadership and brand recognition in this most important segment and should help us get even more deals!
- 80 locations added organically in the last 3 months while absorbing this large acquisition – a great job by our marketing department!
- 22% - increase in total number of transactions going through our ACFN network
Special thanks to Gershon!
Those of you that worked with him directly and all of you that used the detailed materials Gershon spent countless hours preparing know his contribution and benefited from his efforts. We could not have done this without his commitment to excellence and dedication to quality execution along with countless hours of overtime and endless patience as we all grow and learn so we can integrate this portfolio into our business. Thank you for making this possible!
I also want to thank our entire operations team and specifically Andrew for stepping up, accepting management responsibilities and for doing a great job helping franchisees through complicated and challenging transfers and repairs. You do a great job Andrew – thanks!
DCC – time to Cash-in$
As you know extra revenue can be generated from international transactions by programming your ATMs to do Dynamic Currency Conversion (“DCC”). This program has been available for a while but since it requires moving your ATM over to CDS many of you resisted the change. At this point most of you are already with CDS and the reviews of their platform have been very positive so it’s time to cash-in$$
Last month just the 60 ATMs that we have actively doing DCC paid franchisees $2,384 in extra revenue!! That is an average of $40 per ATM or $480 per ATM per year. There are MANY more locations that can benefit from DCC and especially some of the new additions from our acquisition.
What is required?
That is it. No actual cost (unless you need a cell device) just a one-time effort of about an hour and then you earn additional income from international transactions.
- High speed communications (or enough income to justify adding a wireless device)
- Model RL2000 or newer
- Nautilus Hyosung and most wall units work as well
- About an hour at the location
How does this work:
Currently franchisees are being paid 1% of the amount dispensed so a typical $200 transaction would pay an additional $2. This is in addition to surcharge so it is extra and significant.
- If you have 10 of these trans/mo. you could earn $240 extra per year
- If you had 20 you could earn an extra $480 per year
More good news –
As soon as we hit a volume threshold (should happen when we get 100-120 terminals processing DCC) we will secure a higher rate of 1.5%. At that point:
- If you have 10 of these transactions/mo. you could earn $360 extra per year
- If you had 20 you could earn an extra $720 per year
- All for just a one-time one hour effort – a very good ROI$
We are currently preparing a fresh report to identify the terminals that would benefit most from adding DCC. As soon as the report is ready we will be contacting you to get started.
Acquisitions Locations & Corporate Assets For Sale
New York, NY
9 ATM Locations Making $93,458
Route Cost: $202,837
Required Cash Flow: $104K
New Haven, CT
2 ATM Locations Making $11,174
Route Cost: $24,061
Required Cash Flow: $12K
6 ATM Locations Making $42,880
Route Cost: $90,658
Required Cash Flow: $50K
3 ATM Locations Making $26,224
Route Cost: $46,236
Required Cash Flow: $40K
1 ATM Locations Making $26,911
Route Cost: $63,437
Required Cash Flow: $18K
Kansas City, MO
3 ATM Locations Making $22,185
Route Cost: $45,046
Required Cash Flow: $30K
Corpus Christi, TX
2 ATM Locations Making $12,652
Route Cost: $27,464
Required Cash Flow: $16
La Quinta, CA
2 ATM Locations Making $10,756
Route Cost: $23,076
Required Cash Flow: $15K
2 ATM Locations Making $18,094
Route Cost: $39,920
Required Cash Flow: $19K
CEO & President, ACFN
Franchisee Review “Flexible and Open Partnership"
After 8 years with ACFN as a franchisee, I continue to be impressed with the team that has supported my business growth through the years. I originally started with ACFN in October 2008 with a group of 5 machines and now actively manage 20 ATM’s. I chose ACFN as a result of the stock market crash that we were experiencing at the time. I was looking for a good ROI, without the risk of losing the value of my investment during a market crash. ACFN provided that opportunity and still does today. I have typically averaged 20% ROI on my machines and unlike the stock market, which can turn south on you quickly, the investment that you make in your ATM’s only grows.
During my tenure with ACFN, I have developed a great deal of trust and respect working with Jeff, Avi, Jim, Gershon, Mira and the accounting, implementation, sales and support teams. Whenever I get calls from potential franchisees, I always tell them that the one word to describe the ACFN team is Integrity. Every member of the team works with the highest level of integrity in everything they do, every day.
Recently, I started adding new locations, with almost no effort on my part to close deals. The reason for this is that drops that I made several years ago continued to be worked on by the sales team. In one deal recently, Jim closed a contract on a college that provided me 4 locations on their campus and each one is performing very well. The marketing drop that I did for this location was back in 2013. Even though I had long forgotten about the location, Jim continued to follow up on a regular basis. When the college’s current vendor was not performing, they called Jim due to the relationship he built with the location over the years with his follow up. I met with the location and Jim closed the deal. The point here to remember is that to grow your business you have to consistently make the drops that ACFN provides you. Even if the deal does not close immediately, your long term success will be a result of the backlog that the Sales team has to work on for you.
I am grateful for the relationships that I have developed with the ACFN team and for their support over the last 8 years. During that time, I have grown a business that generates a nice monthly income and provides me with the work -life balance that I enjoy. I would encourage other franchisees to invest the time to make drops, build your backlog for the Sales team to work on for you and enjoy the rewards that will certainly come from your efforts.