I bought a failing business for $20k in 2019
Today, it makes $13,000 per month
Here’s how I pulled it off:
Nobody wanted this shop. I was literally told, “this location has always been a loser.”
In fast food franchises, success is HIGHLY correlated to the physical location.
Pick a great spot with lots of traffic (during the right time of day), and it’ll print money even with a below-average team.
In our business, location definitely matters, but success is HIGHLY correlated to our team & process.
What are the two biggest things I can control?
Team & process.
I believed in myself and my team, so I personally guaranteed everything: the seller note, 20-year franchise agreement, and 10-year lease. Failure wasn’t an option.
This was my 6th location in the same franchise. I purchased the first 2 in 2016, another in 2017, 2 more in 2018
Sales & cash flow grew at every location I bought.
I had a repeatable system.
This store was doing $600k in revenue but making ZERO profit when I acquired it.
Purchased it for $120,000 structured with seller financing:
- $20k cash down +
- $2,350 per month for 48 months
My plan was simple: grow the cash flow by just $3k per month to pay the debt every month.
The store was so close to making money that it wouldn’t take much to get there.
We did more than cover our note….
Sales climbed to $800k, $900k, today over $1.2M.
Today, it makes ~$13k every month.
Is it my most profitable store?
No, but it’s consistent, and the seller note is completely paid off, which helps our cash flow.
This is just one of our 35 auto repair franchises
All of them follow a similar playbook:
1/ Build relationships with neighboring franchisees
2/ Invite them to lunch. Tell them about your expansion plans
3/ Ask to be the first call when they want to sell
4/ Follow-up every 6 months.
5/ When ready, make an offer of roughly 3X SDE (or asset value if not profitable)
6/ Pitch seller financing: they earn interest, defer taxes, and close quicker
Want to learn more?
This Friday, Aug 22nd I’m running a LIVE workshop
I’m gonna give you my entire franchise acquisition playbook
Scaling franchises has changed my life. Maybe it’ll change yours too
Register for the workshop here (it’s free)
Cheers!
Brian
