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- Empire Building Franchises
People buy franchises for different reasons:
Replace current income
Passion project
Build a legacy
Side hustle
Me? I want to build an empire
Big > Small
One of my favorite books is What It Takes by Blackstone's Stephen Schwarzman.
There's a quote that's stuck with me for years:
It’s as hard to start and run a small business as it is to start a big one. You will suffer the same toll financially and psychologically as you bludgeon it into existence.
It’s hard to raise the money and to find the right people. So if you dedicate your life to a business, which is the only way it will ever work, you should choose one with the potential to be huge.
I've experienced this firsthand in our Midas business.
It takes the same amount of time & energy to negotiate, buy and integrate a single new store into our business as it does an entire market.
`The same goes for our new painting business. My team will put the same time & energy into learning, training, tracking, building, etc., whether we have 1 location, 5, or 10+ locations.
A bigger business generates more cash flow that you can invest into hiring better people. Those leaders make the company even more money PLUS free up your time to focus on even higher-value activities.
Most Franchises Suck
There are over 3,000 franchises in the US. Many of them are crap. Just because someone has a successful business model does not mean it'll be a great franchise.
If you buy the wrong franchise, it'll feel like you're pushing a donkey up a hill. It's a lot of work, and you may never reach your destination.
If you buy the right franchise, it'll feel like you're riding that donkey. It's still a bumpy ride that takes time, but a powerhouse supports you.
Don't go at this alone. My team will help you find the perfect franchise based on your goals, skills, & budget.
Here's what I look for in an empire-building brand:
#1 Scalable
The business model should work all over the country, in different markets, operated by average people, all following the same process.
It's a problem if the brand only works in specific markets operated by rock stars with decades of industry experience.
There must be a path from $0 to $250k ➝ $500k ➝ $1M+ profit per year.
I want to see other franchisees or competitors who've built a business similar to my target size.
#2 Thriving Franchisees
Current franchisees should be thriving.
The franchisor is delivering on everything they promised; franchisees are making money and rave about the support. Some of them may be thinking about expanding.
Pro Tip: do not call franchisees in your target market. They may be thinking about buying that territory. Your call could push them to buy it, or they try to deter you.
Make sure you talk to people who will operate the business like you.
An owner/operator doing 100% of the selling will have a different perspective than a CEO with a Regional Director and multiple sales reps.
Walk away if many owners struggle and don't see a path forward.
#3 Huge Demand
Some love being first to market in a new franchise concept. The first ever IV-drip franchise. The first to bring a bubble tea concept to Philly. The first national TRT Therapy brand.
You take on a huge risk going into uncharted territory. You could also make a boatload of money if you nail it. Some people love this risk/reward ratio.
Me?
I want a business where people are already spending money on the service. I plan to steal market share from competitors, not create a new market.
#4 Encourage Growth
Some franchisors don't want big multi-unit franchisees.
UPS Store, Chick-fil-A, & CertaPro Painters limit franchisees to 1 to 3 locations. Others want fewer franchisees who own more locations.
If you’re the franchisor, would you rather work with 100 people who own 1 unit each or 10 people who own 10 units each?
It’s easier to support 10 vs. 100.
On the flip side, as a franchisee, the bigger player you are within a brand, the more leverage you create.
If you and four other 10-unit franchisees band together you now control 50% of the system. If the franchisor is trying to push down something you don’t agree with, you’ve got leverage as a group to push back.
Compare that to rallying 49 other owners to get on board.
#5 Training & Support
A great franchise model is a training machine.
They should have multiple layers of training & support:
Online
In-Person
Sales & Technical
Business Coaches
New hires & franchisees should be able to get up to speed quickly.
#6 Leadership
Does the leadership have what it takes?
In an emerging brand, the leadership team matters more than the business model.
They will face macro-level challenges around marketing, operations, technology, processes & more. You need to trust they will find solutions & act quickly.
Next Steps
My team helps people find & buy scalable franchises. We provide personalized franchise matching.
We give you a huge list of questions to ask the franchisor to franchisees.
We get you connected to franchise-friendly lenders & attorneys.
This service is 100% free to you.
Cheers!
Brian Beers