The $500K Franchise Secret That Turns Into 100% Cash Back in Year One

And you've been, I mean, you've been doing this long enough and watch countless concepts come and go as, you know, some of you've mentioned what separates a, you know, a durable franchise from, from a fad.

Yeah.

I mean, there are certain core elements.

I mean, I'll tell you up front, Kip, I'm not a big advocate of food.

Food tends to be really fickle.

Things come and go.

I mean, you can look at a brand like Subway and the ebbs and flows of how that brand grew and how at times it was doing, the franchisees were doing, and other times how... how less they were doing uh if you remember the whole jared campaign right and uh things took off with that and they were doing really well their unit economics looked pretty good for for food but then that kind of came crashing down and then they were unit economics cut in half then they had a five dollar foot long and it ebbed up again and they did really well And then that kind of fell off.

So food scares me in that it's a smaller profit margin, usually single digit profit margins, minimum turnover, I'm sorry, high turnover, minimum wage employees.

The labor model has gotten a lot more difficult since COVID.

So food, I tend to stay away from.

There's a lot of concepts out there that have great profit margin.

Sometimes the businesses that I think offer the best opportunity are ones that are, boring businesses.

I mean, service oriented businesses.

So depending upon what my candidates are looking for when I work with them, I'm always trying to ascertain, look, are you looking for something because you're passionate about it and that's what you want to do? Sometimes it's not, it's not the easiest thing to marriage that, to marry that passion with a successful business.

So my counsel usually is, you know, Focus on ROI, earnings.

Don't worry about the which it is.

As long as it's ethical, provides a valued service to the community.

Because I always try to measure, put people on the scale when I start working with them.

Some people are what I term as ideologues.

People that like, hey, I want to be in a pet-related business because I love my dog.

Versus the other side of the spectrum, some people are, hey, just show me the money.

Show me the best financial opportunities.

And we try to marry that somewhere in between.

But I can tell you from a lot of experience running a lot of businesses and owning many franchises, the passion comes from operating a successful business.

Because if you don't have financial success, if you get into some pet-related business and you fail at it, you're going to learn to hate your passion.