In 2016 I bought my first franchise.
In 2025 we should cross $50M in revenue.
That journey taught me something that’ll stick with me forever: the most powerful investment vehicle on earth is a business you own.
It’s not even close.
I’ve watched friends spread money across stocks, real estate, and crypto. Meanwhile, I’ve reinvested millions back in my business — which multiplied many times over.
The power of compounding your business is ridiculous, but most people are afraid to do it, so they stay small.
How do I determine where to re-invest the profits?
This is the EXACT reinvestment blueprint I’ve followed (and will continue to hit $100M+ per year)
1) Buy EXISTING unit(s) of CURRENT brand in CURRENT market(s)
The entire point of running a franchise business is “rinse & repeat”
Adding existing locations into my existing footprint is very easy. We already have all the resources in place.
The essential checklist is done within hours of acquiring: credit card machines swapped, employees onboarded into our payroll, and the software pointed to our database.
One of the many benefits of franchising is the ease of onboarding an existing location.
2) Open NEW unit of CURRENT brand in CURRENT market(s)
There are many synergies in filling your footprint, especially if we can bridge the gap between two locations.
For example, we have two stores separated by a 30-minute drive. We are searching for a new location to split the distance, a 15-minute drive from each.
Adding this store helps us build a bench of employees and create promotion opportunities while making on-site visits convenient for the District Manager
3) Buy REAL ESTATE that we CURRENTLY rent
I’m not a huge fan of buying real estate to gain financial freedom.
Real estate is meant to protect wealth, not to create it.
However, if we’re going to pay rent for the next 10+ years I’d rather use that cash to pay down principal on a mortgage.
Unfortunately, all of our leases are NNN, long-term, in a resilient industry, and backed by a very solid operator (me). We’ll be ready if they ever want to sell.
4) Buy EXISTING multi-units of CURRENT brand in NEW market
To expand into a new market, we need at least 3 locations to start, with a path to 5-7 within 18 months.
Our business requires a hands-on District Manager to oversee the stores, a $150k annual investment with a loaded salary, bonus, benefits, travel, and other market expenses.
It could take years to open all new locations in a new market since it’s very hard to find real estate in this business.
Instead, we aim to acquire a multi-unit package that becomes the foundation for the market.
Then, we return to the top of my list, acquiring or opening stores in the new market.
5) Buy EXISTING multi-unit of NEW brand in CURRENT market(s)
I only get into a new concept if I feel strongly about the opportunity.
Something scalable, with strong ROI, simple to operate, and huge macro-winds behind it. I’m not into trendy concepts.
I also need an operating partner with skin in the game who will eat, sleep, and breathe the business. “Just hire a manager” doesn’t work.
I’m looking for a unicorn: a multi-unit group to acquire in our current market(s).
These are very hard to find since franchisees want to sell to other franchisees.
The best deals are done internally and never hit the market. Most broker deals are crap (which is why no other existing franchisees wanted to buy it)
6) Open NEW unit of NEW brand in CURRENT market(s)
Starting fresh with a new brand has it’s advantages.
I can pick the best model in the best locations, not just what’s available.
There are no bad habits to break or systems to fix.
That first location is my ticket to that brand’s inner circle. Once I’m in, I can start at the top of this list to compound my growth.
Plus, I get to cherry-pick the best practices from each system. What I learn about hiring in one brand helps the others. Same with marketing, operations, and team building.
Each business becomes a learning opportunity for the others.
7) Other People’s Deals
If I take money out of the business, I invest into 3 buckets:
Index funds – Vanguard, low-cost, super boring.
Private equity – potential home runs with proven operators in unique opportunities.
Debt funds – 10-15% annualized returns backed by hard assets, run by professionals.
8) Want To Follow This Same Path?
I have helped hundreds of people at every stage of this journey, from finding their first franchise to building their empire.
Reply here with where you’re at and where you want to go.
Let’s map out your path forward.
