Franchise Will Provide a New Business Model For a Tired Industry
Gaithersburg, MD. – ZGrowth Capital, LP is excited to announce that it has made a strategic investment and acquired a controlling interest in Comfort Depot (www.diycomfortdepot.com). This investment marks the third such investment by the fund in the past 60 days. ZGrowth Partners expects this to be its first brand that will focus on converting existing businesses into franchisees.
Comfort Depot (currently DIY
Comfort Depot) is addressing a significant industry-wide problem. Consumers in need of a heating
or cooling systems find it time consuming and inconvenient to get a quote. Typically, industry
professionals spend hours trying to sell them on a system when all the consumer
initially wanted to know was what will it cost. Consumers today want
transparency and immediate price knowledge.
Enter Comfort Depot. They provide the necessary solutions to address the needs of today’s consumers. Comfort Depot has a patent-pending eCommerce platform that allows consumers to shop for multiple brands of Heating and Cooling products at the same time while getting quotes within a few minutes.
Their signature “Instant Quote” allows you to get an estimate for the right size equipment and from 4 different manufactures instantly, which is unheard of in this industry. Once you have your quote you simply schedule an In-Home Measurement and you are ready to go. This revolutionary process streamlines a very old and dated process.
“We were introduced to the concept by one of our investor partners who raved about how simple and transparent the process was for them. I was blown away by how they had built such a disruptive model in an old-line industry, said Rick Del Sontro, CEO of ZGrowth Partners. “Ed and Justin Riley have built something really special which will allow us to accelerate the growth of this brand”.
According to Justin Riley, Founder of Comfort Depot, “We are providing solutions for today’s consumers who want transparency in pricing and to have the ability to go online and get a quote instantly and whenever it’s convenient for them. We realized after building our industry changing technology that we had something special. We needed to franchise this concept but lacked the capital and the industry knowledge, so we turned to ZGrowth. We are thrilled to have them as our partners.”
The technology has been in place since April of 2018 and has driven tremendous consumer demand to Accel Heating and Cooling, the operating business also majority owned by ZGrowth. Customer conversion rates have grown from 20% to 85% and the customer acquisition cost had dropped significantly. ZGrowth is convinced that this will also solve existing industry operational problems thus opening the door for conversion franchise opportunities.
ZGrowth has major growth plans for Comfort Deport in the coming year. They plan to launch the franchise in Q1 of this year and believe they will be able to rapidly accelerate the growth of the brand. Under the Comfort Depot model everyone wins. The consumer gets access to the information they need, and the franchise owners will become more productive and do so much more cost effectively.
About ZGrowth Partners LLC Partnering with Great Brands to Build World Class Franchise Systems. ZGrowth Partners is a consulting firm specializing in managing the franchise sales, operations and brand development of emerging franchise concepts. Through its private equity fund, ZGrowth Capital, our strength is focusing on investing in and growing differentiated franchise concepts with attractive unit-level economics. To learn more about ZGrowth, visit zgrowth.com.