The Riverside Co. launched Threshold Brands, an umbrella for five trade services franchisors acquired over the last eight months by the private equity firm—MaidPro, FlyFoe, Men in Kilts, Pestmaster and USA Insulation. More acquisitions in the sector are ahead, partners say.
“It speaks to the very, very large total addressable market. There’s so much opportunity there and there’s so many potential franchisees that are really interested in this business model,” said Jeremy Holland, managing partner at Riverside, citing mobile businesses not “wedded to bricks and mortar retail” that can offer a faster payback for franchisees.
MaidPro, which provides residential and light commercial cleaning services, has 270 franchised locations. FlyFoe, a mosquito and tick control franchise, and Men in Kilts, a window-cleaning, power-washing and gutter-cleaning franchise, were sister brands to MaidPro and acquired at the same time.
Founded by Mark Kushinsky, MaidPro has an investment range from $77,560 to $102,800.
Pestmaster, founded by Jeff van Diepen, provides pest control services and has 35 franchised locations. Cost of investment is $43,210 to $88,710.
USA Insulation, led by Pat Pitrone and founded by his father, offers retrofit insulation services and has 50 units. Cost of investment is $170,500 to $346,000.
“We’ve had a great degree of early success: three companies, five brands in eight months. We remain firmly in buy mode,” said Steve Rice, the Riverside partner in charge of Threshold Brands.
“That’s actually one of my favorite elements of this job, and Riverside’s core differentiator. All we do is work with entrepreneurs,” Rice said. “We’ve become the best home for small businesses in the world.”
Riverside was the backer of Neighborly, formerly called The Dwyer Group, which it owned for two different stretches. Neighborly is the largest franchisor of home service brands, with 28 brands and counting under its umbrella.
“We love the franchisee model generally; we love this particular effort that Steve is leading,”which is “just a logical extension of all of our experience to date,” Holland said, adding about founders, ‘If we can help them get where they want to go a little bit faster and with a little less heartache, we’ve done our job.”