How Koydol Flooring’s Item 19 Sweeps the Competition

Koydol, the commercial flooring brand started in 2012, has always been focused on providing results for its clients. This year, as Koydol launches its franchise opportunity, this results-driven focus is being carried over to prospective franchisees, and savvy entrepreneurs are recognizing the company’s finely-tuned operations, expert leadership team and, perhaps most notably, eye-catching potential for ROI.

“From day one, we designed this business to grow quickly and achieve high revenue,” said Koydol President and CEO Amadou T Agne. “We always planned to launch a franchise opportunity, but we wanted to make sure we had a solid operational model before we took that step. Now, not only are we offering the first strictly commercial flooring franchise in the market, we believe we also have one of the best investment opportunities in all of franchising.”

The total investment necessary to begin operation of a Koydol Flooring franchise is $79,500 to $122,000, including the initial franchise fee of $30,000.

Franchise investment details

When it comes to what franchisees could potentially get for this low investment, the results speak for themselves. According to the brand’s 2020 FDD, the original D.C.-based corporate Koydol Flooring location saw an average $3,786,876 in revenue between 2014 and 2016. Additionally, the location saw $1,005,786 in gross profit and an average EBITDA of 27% or $981,663.

“An effective operator can easily find an EBITDA of 8–10% with an average gross profit margin of around 20% in a good year,” said Zhanibek Zhumadil, Koydol’s executive VP of corporate strategy and operations. “Best of all, the business itself is not expensive or difficult to get up and running, allowing franchisees the opportunity to scale quickly.”

The Koydol Flooring brand was created after Agne went through 15 years of trial and error in the commercial flooring segment. While navigating the industry, Agne quickly realized how important it was to develop the right relationships in order to penetrate a market. To streamline this process, Agne designed a dedicated, international estimating team, which would allow Koydol to bypass the personal connections and get attractive proposals in front of general contractors he would not have otherwise had access to.

Business model success

The system proved to be a game changer for Koydol. In 2016, one of the largest general contractors in the U.S. hired Koydol to complete the ceramic tile for the MGM National Harbor in Maryland.

“We’re in a large industry, and it’s very hard to wine and dine your way into big projects,” Agne said. “By setting up a dedicated, international estimating team, we found a much more effective way of breaking into the market. We have developed an aggressive proposal process that has helped us land major projects that other brands would work decades to get a shot at.”

Agne’s in-depth industry experience also gave him a deep understanding of what general contractors are looking for. As a result, Koydol is designed to appeal to general contractors with robust operational systems that can deliver virtually any size project within budget, on schedule and to the contractor’s specifications.

Now, whether it be the international estimating team, aggressive proposal process or general contractor relationships, these systems have been operationalized to ensure franchisees find the same success the brand has enjoyed over the years.

Growth strategy and support

Additionally, Koydol has created an innovative target growth strategy that will increase individual franchisee’s potential revenue by allowing a small number of owners to operate large territories. Each territory will be large enough to reach $5–$10 million in projects after the fifth year of being in business.

“We’re not chasing a million franchisees. If we cover the entire country, we’re looking at probably 100 franchisees total, each with a very large territory,” said Zhumadil.

Agne says Koydol will even open the market for the franchisee, bidding on target markets prior to granting the territory to the franchisee so they can launch quickly and start generating revenue right away.

“The challenge independent operators face is breaking into the market and scaling up the business, which is incredibly difficult to achieve alone and something we’ve already done for our business,” Agne said. “Koydol has spent the past nine years establishing long-lasting and lucrative relationships with general contractors, suppliers and customers in several markets across the U.S. By joining the Koydol team, you can leverage these unparalleled partnerships from day one, significantly cutting down on the time to ramp-up and achieve ROI.”

Looking ahead, Agne says he plans to launch eight franchisee-owned territories by the end of 2021, starting with markets in Virginia, North Carolina and Pennsylvania. Starting next year, the brand aims to add 10–15 new territories per year, with a goal to cover all major metropolitan areas within the next five years.