Turn $100k into $1M Profit Per Year

by scaling a multi-unit franchise

There are many vehicles to build wealth.

You could get a job, save every penny & eat ramen noodles for the rest of your life. You could invest in real estate and deal with tenants & toilets for $200 per door per month. You could grind away in a small business.

Or use a franchise to get in the fast lane by following a proven playbook.

Here is the step-by-step guide to turning a $100k investment into $1,000,000 profit per year.

This process is simple but not easy. It will only work for people who are very driven, willing to learn & great with people.

Find a Franchise

Here's what I'd look for:

  • Simple business model

  • Strong sales & margins

  • Low ongoing overhead

  • No big leases or retail build-outs

  • Franchisor does all lead generation

The search process is overwhelming if you do it alone. I've got a free shortcut for anyone interested: personalized franchise matching.

My team works 1-1 with you to provide options based on your goals, skills & budget. Book your first call here.

Let’s say my budget is $100k to launch each territory. This could be the entire investment or down payment plus debt.

Year 1: Launch 1st Location

I would operate the first location

I would do all the estimating, selling & managing the team. I would learn the business so I could hire & train my replacement.

I'd probably work 50-60 hours per week, and I'd love it since I'd be building wealth for myself instead of someone else.

If you do the hard work today, life will be easy tomorrow. If you take the easy route today, life will be hard tomorrow.

I'd reduce my personal expenses as much as possible (or live off savings) to plow back $100k to launch location #2.

The first year, the distribution (aka owner paycheck) would only be $38k. You can delay the launch of your 2nd location for another 6-9-12 months if you need more personal income.

I use this simple P&L model for every business. Read more about it here.

Year 2: Launch 2nd Location

I'd hire a manager to take the reigns at location 1 so I could focus on getting the new location off the ground.

This is where a lot of franchise owners need help. They struggle to find & train their replacement. They can't delegate. They try to be in two places at once.

I re-invest $100k of profit into launching the 3rd location.

I also receive some fruits of my labor with a $152k distribution.

Year 3: Launch 3rd Location

For the 3rd location, I hire a manager from day 1. I have the cash flow from the other two locations to support the additional payroll.

We continue to grow the sales.

Net profit is $384k, giving us the budget to launch two more locations for $200k and still take $184k distribution.

Year 4: Launch 4th & 5th Locations

I'm now a franchise pro.

I am confident in launching two new locations since I've got great people running my other three.

I'm pulling $682k+ in profit and could easily stop here. Many people would.

However, I've got bigger goals. I need to remove myself from the day-to-day operations to achieve those goals.

I need to hire a district manager who will make at least $100k+.

I invest in two more locations to support the new hire.

Year 5: Launch 6th & 7th Locations + Hire DM

We get the final two locations launched.

Our District Manager runs all of the day-to-day, overseeing the location managers, hiring, firing & holding the team accountable.

We're pulling in over $900k in profit after paying the DM.

Year 6: Maturity

After six years, I've got all 7 locations cranking $7.3M in sales, producing over $1M per year in profit (15% net margin)

I've got a great DM running operations.

I now have a lot more freedom. Freedom to travel, golf, and continue to build.

I can keep building the same franchise and launch a second district to double my profit from $1M to $2M. I could repeat the entire process with a new franchise if I wanted a new challenge.

Call to Action

Nothing is guaranteed by owning franchises.

But the path is clear. Success is determined by your ability to execute.

That is what I love about franchising. I can wake up every morning, work hard, & see results. I can learn how to hire better people, how to train them, & become a stronger leader.

I've scaled my auto repair franchise to 33 units doing $40M+/year.

If I can do it, you can do it.

Start Today

Book a call today with my team. We will help you find a franchise and provide you with all the tools, checklists & resources to give you confidence.

It costs you absolutely nothing.

Let's Connect

On my podcast, Business with Beers, I interview franchisors, franchisees, & do deep dives into specific topics.

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Brian Beers