Beyond the Arches #34: Historic Helene cut a path of destruction through the southern US. We researched startups that could help communities recover more quickly. 

Featured Story

It was the latest example of the impacts of a warming world – Hurricane Helene roared into Florida’s Big Bend region, making landfall as a record-setting Category 4 hurricane just days after its formation in the Gulf of Mexico. The force and power of the storm brought strong winds and a lethal storm surge estimated to be 15 to 20 feet. The monster hurricane left behind a path of destruction that affected six states between Florida and the Carolinas, leaving 190 people confirmed dead and hundreds more missing. Helene also knocked out water supplies, power, communications, and road access to those affected.

President Joe Biden and Vice President Kamala Harris surveyed the destruction via helicopter, stopping in affected areas to reassure residents about the government’s commitment to help communities recover and rebuild. President Biden announced that the federal government would cover 100 percent of the debris removal costs and emergency protective measures for six months in North Carolina. He also directed 1,000 active duty military service members for deployment in the state to assist the National Guard in restoring critical services. 

Participate in essential service startups

When natural disasters strike, the top priority is to restore power to get communities back on their feet. Several startups are addressing the challenges of providing critical power infrastructure and generation when the public grid is unavailable. These innovative companies could make great additions to portfolios of investors looking for energy diversification opportunities: 

• Halcium Energy: Like solar, individual wind turbine power production is growing in popularity. The flexibility of small turbines makes them a viable option for generation in both urban and rural areas. The omnidirectional design of the Halcium turbine ensures optimized generation through any conditions. 
• Oxydus: Access to potable water is another top priority during a crisis – but the need for better potable water solutions is present every day. The Teva7 air and water filtration system allows the capture of safe drinking water from the atmosphere, which eliminates the need for extensive infrastructure. The decentralized water system can help address a looming water crisis without adding to carbon emissions

On Our Radar This Week

• Tamed inflation and higher consumer confidence are on the radar this week as the U.S. Dockworkers strike takes effect. Nearly 25,000 dockworkers represented by the International Longshoremen’s Association walked off their posts in protest of low wages and lack of protections from automation. The first strike of dockworkers in 50 years could have profound impacts on the price of consumer goods and the delicate balance of cooling inflation.
• The world is bracing for a widening conflict as Israel this week carried out strikes on targets in Lebanon. Tensions continue to increase as Israel turns its attention to fighting Hezbollah, targeting sites throughout Lebanon, including a strike in Beirut that killed six, of whom one was an American citizen. The UN Security Council is focusing on de-escalation to prevent all-out war between the countries. 
• A critical labor report meets a stock market at record highs as the S&P notches another record close. More progress will hinge on several factors, including the outcome of the port strike, news from the September jobs report, and sentiment heading into the presidential election in early November. Reactions to any of these factors could create instability in performance.

Macro Bites

• DirectTV agrees to buy Dish for $1. The move consolidates two struggling rivals into a single entity after years of discussions.
• Stellantis shares drop after profit warnings. The European car conglomerate for Chrysler, Dodge, Jeep, and Maserati adjusted its double-digit outlook to a modest 5.5 to 7.0%.
• FOMO grips China stock buyers on “epic” trading day before break. The stock benchmark index posted its biggest gains since 2008 earlier this week.

Start passively investing in franchises today!

Accredited and non-accredited investors can invest in our latest offering, TNT Franchise Fund Inc., today! 

TNT Franchise Fund Inc. is a diversified portfolio of up to 30 Smash My Trash locations and 25 Teriyaki Madness outlets throughout the United States.

With its patented waste compaction service, Smash My Trash is disrupting the $1.6 trillion waste management sector. By compacting waste in open-top dumpsters to reduce waste volume, customers save money (up to 20% of waste removal costs) and reduce their CO2 emissions by up to 65%.

Teriyaki Madness stands out with its fresh, made-from-scratch meals and a lively, inviting ambiance, revolutionizing the fast-casual Asian dining scene. Its surging popularity is evident on platforms like Yelp, Facebook, and Google, where an increasing community of enthusiasts sing its praises.

Highlights:

• Target locations: Up to 55
• Smash My Trash per-location economics: $885K in revenue with 28% EBITDA after 16 months of operation
• Teriyaki Madness per-location economics: $1.16M in revenue with 20% operating profit

As the Smash My Trash and Teriyaki Madness locations come to fruition, investors in TNT Franchise Fund Inc. can expect to receive excess cash flows from the business operations of the locations on a quarterly basis.

For more information on the offering, contact our team.