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Is franchising still a wealth play — or peak risk?
Manage episode 515225818 series 2987964
Are we witnessing a reset in what “proven,” “scalable,” and “investable” mean in franchising?
This is not the sugar-coated version of franchising. Patrick Buckley sits down with Chris Ressa to unpack what is actually happening behind the curtain of franchise growth, exits and unit-level profitability. He breaks down the split between legacy giants and scrappy emerging brands fighting for first-time operators, why once-hot home-service brands have cooled off, and why beverages and “drive-thru only” formats are the franchise sector’s new land rush.
Patrick gets blunt about the math — labor, food inflation, beef shortages, construction costs and multiples that make zero sense on paper. He explains why Taco Bell can sell at 10X EBITDA while most operators are fighting to keep 10% margin, and why franchising is not a guaranteed “proven system” but a case-by-case knife fight. Health and wellness franchising is rising, the approval gate is tighter than people think, and the biggest risk is assuming the word “franchise” equals safe..
What you'll hear:
- The collapse in home-services franchise buying after the 2020–24 gold rush
- The beverage & drive-thru wave and why it's crowding capital
- Unit-profit reality: labor > inflation, food > margin, construction > forecast
- Why some brands trade at 9–10x EBITDA despite margin compression
- How first-time buyers actually get (or don’t get) approved to buy existing units
- Why health & wellness may steal share from food over the next decade
- The warning most first-time buyers wish they heard sooner
Chapters
00:00 Introduction to Fran Dogs and Patrick Buckley
03:02 Current Trends in Franchising
05:40 Challenges Faced by Franchisees
08:59 Understanding Franchise Valuations
11:44 The Rise of Taco Bell and Beverage Trends
14:58 Navigating Franchise Purchases
17:41 Emerging Categories Beyond Food and Beverage
20:34 Final Insights and Industry Statistics
301 episodes
Manage episode 515225818 series 2987964
Are we witnessing a reset in what “proven,” “scalable,” and “investable” mean in franchising?
This is not the sugar-coated version of franchising. Patrick Buckley sits down with Chris Ressa to unpack what is actually happening behind the curtain of franchise growth, exits and unit-level profitability. He breaks down the split between legacy giants and scrappy emerging brands fighting for first-time operators, why once-hot home-service brands have cooled off, and why beverages and “drive-thru only” formats are the franchise sector’s new land rush.
Patrick gets blunt about the math — labor, food inflation, beef shortages, construction costs and multiples that make zero sense on paper. He explains why Taco Bell can sell at 10X EBITDA while most operators are fighting to keep 10% margin, and why franchising is not a guaranteed “proven system” but a case-by-case knife fight. Health and wellness franchising is rising, the approval gate is tighter than people think, and the biggest risk is assuming the word “franchise” equals safe..
What you'll hear:
- The collapse in home-services franchise buying after the 2020–24 gold rush
- The beverage & drive-thru wave and why it's crowding capital
- Unit-profit reality: labor > inflation, food > margin, construction > forecast
- Why some brands trade at 9–10x EBITDA despite margin compression
- How first-time buyers actually get (or don’t get) approved to buy existing units
- Why health & wellness may steal share from food over the next decade
- The warning most first-time buyers wish they heard sooner
Chapters
00:00 Introduction to Fran Dogs and Patrick Buckley
03:02 Current Trends in Franchising
05:40 Challenges Faced by Franchisees
08:59 Understanding Franchise Valuations
11:44 The Rise of Taco Bell and Beverage Trends
14:58 Navigating Franchise Purchases
17:41 Emerging Categories Beyond Food and Beverage
20:34 Final Insights and Industry Statistics
301 episodes
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