1 00:00:00,240 --> 00:00:05,080 Some of these franchise models are simple enough that you can operate and manage to 2 00:00:05,280 --> 00:00:09,839 three people without having a manager. Others there's more moving parts too. In 3 00:00:09,960 --> 00:00:14,119 terms of me buying five territories or five franchises, one that I have, 4 00:00:14,439 --> 00:00:17,920 I need a manager not to start with. So the person who I'm partnering 5 00:00:17,920 --> 00:00:22,960 with, he is going to operate directly manage it for ten to twelve hours 6 00:00:22,960 --> 00:00:28,519 a week. You're listening to Carrie Letz's Financial Survival Network where you get valuable 7 00:00:28,559 --> 00:00:34,000 information you just can't find anywhere else to thrive in today's trying times. You 8 00:00:34,159 --> 00:00:40,439 need the Financial Survival Network now more than ever. Go to Financial Survival Network 9 00:00:40,520 --> 00:00:47,240 dot com and get your free newsletter and gift. Financial Survival Network now more 10 00:00:47,280 --> 00:00:55,240 than ever, and welcome you are listening to watching the Financial Survival Network. 11 00:00:55,280 --> 00:00:59,439 I'm your host, Carrie lets Well. I always encourage you people out there 12 00:00:59,520 --> 00:01:03,799 to become entrepreneurs if you're not already. One of the most surefire ways to 13 00:01:03,920 --> 00:01:10,200 succeed at being an entrepreneur is through franchising. Now, for myself, that 14 00:01:10,239 --> 00:01:12,680 wouldn't have been a good option, but it might be the perfect option for 15 00:01:12,719 --> 00:01:18,640 you. Usually you talk about franchising. You think in McDonald's, Burger King, 16 00:01:19,000 --> 00:01:23,640 big fast food entities, But the fact is that some of the most 17 00:01:23,680 --> 00:01:30,040 profitable opportunities are not there at all. Robert Berdodas is with us now. 18 00:01:30,359 --> 00:01:34,400 He's going to give you the franchise hacks that will help you succeed and become 19 00:01:34,480 --> 00:01:40,439 a wealthy franchise. Robert, it's great to have you on. So you've 20 00:01:40,480 --> 00:01:45,959 been enfranchising since eighty six, nearly forty years, so you've seen everything. 21 00:01:46,840 --> 00:01:51,879 I guess I should ask you, what are the most money making franchise opportunities 22 00:01:51,959 --> 00:01:56,280 out there with the least investment. No, you cut straight to the chase, 23 00:01:56,319 --> 00:02:00,760 don't you. You know what I bought a franchise as not too long 24 00:02:00,799 --> 00:02:06,480 ago. It's it's in the service sector. It's non brick and mortar type 25 00:02:06,480 --> 00:02:12,479 of franchise. It's actually a service that does grout entile cleaning. Sounds innocuous, 26 00:02:12,520 --> 00:02:15,360 sounds boring, but there's money and things like that. So if I 27 00:02:15,439 --> 00:02:21,599 had to name him a sector enfranchising that, I think harbor is some of 28 00:02:21,599 --> 00:02:27,479 the best opportunities in franchising financial opportunities. I think the home service category, 29 00:02:27,520 --> 00:02:32,039 which also crosses over to B to B as well. I think is probably 30 00:02:32,159 --> 00:02:37,879 the well it is the hottest category and franchising right now. There's I'm watching 31 00:02:38,319 --> 00:02:46,280 a really interesting migration of franchise investors that are were traditionally into brick and mortar 32 00:02:46,319 --> 00:02:52,560 retail type concepts doing uh, you know, things like boutique fitness or beauty 33 00:02:52,919 --> 00:02:58,599 or food. I'm watching a migration of these franchise investors savvy people own other 34 00:02:58,639 --> 00:03:04,840 franchises into the service types types of concepts. The reason being is because your 35 00:03:04,960 --> 00:03:09,560 ROI is infinitely better. Meaning in other words, if you if a candidate 36 00:03:09,680 --> 00:03:14,120 or a client that I'm working with says to me, Bob, show me 37 00:03:14,159 --> 00:03:17,759 to just show me the best financial opportunities. I don't care what the widget 38 00:03:17,879 --> 00:03:23,000 is as long as it's something that is I can do on a part time 39 00:03:23,000 --> 00:03:29,039 basis, because most of my franchise investors are looking for part time, semi 40 00:03:29,080 --> 00:03:34,120 absentee or semi passive franchises, but franchises that can be operated on a part 41 00:03:34,159 --> 00:03:37,800 time basis best ROI, best earnings. I don't care what the widget is 42 00:03:37,840 --> 00:03:40,520 as long as it's something that's ethical provides a valued service to the community, 43 00:03:42,039 --> 00:03:45,960 then that's the direction I would typically steer to. Them in those are where 44 00:03:46,000 --> 00:03:51,759 the best financial opportunities land. It's funny you mentioned that because I'm currently updating 45 00:03:51,840 --> 00:03:58,120 my kitchen and I used a franchise a kitchen tune up yep, And you 46 00:03:58,159 --> 00:04:01,960 know, the guy is pretty hands on. It's definitely not passive because these 47 00:04:02,000 --> 00:04:08,280 people don't show up your employees what it's like now. But I assume his 48 00:04:08,439 --> 00:04:14,080 investment was pretty low up front, and he probably had to go for like 49 00:04:14,120 --> 00:04:17,839 a two three week training period where he learned all the ins and outs of 50 00:04:18,040 --> 00:04:23,839 updating kitchens. Right, And it looks like a great business, but like 51 00:04:23,920 --> 00:04:28,839 every business, there's aggravation, right, absolutely, depending upon how you approach 52 00:04:28,920 --> 00:04:33,959 the model. More and more franchise companies are developing what's called a semi passive 53 00:04:34,040 --> 00:04:39,079 model, simply meaning they put the tools in place to support you doing it 54 00:04:39,079 --> 00:04:42,839 on a part time basis. Now the individual, if that was the franchise 55 00:04:43,120 --> 00:04:47,319 that came in, was doing it in your home, their old school, 56 00:04:47,600 --> 00:04:54,240 they're doing it. That's a full time franchise. Franchise companies are trying to 57 00:04:54,279 --> 00:04:57,759 get away from that, and the reason being is how much can he grow? 58 00:04:58,120 --> 00:05:01,399 Can you really scale doing it that way? So more and more franchise 59 00:05:01,480 --> 00:05:06,279 companies are developing models to allow franchise us to do it on a part time 60 00:05:06,319 --> 00:05:12,040 basis. Hire people, manage a manager in a lot of cases, and 61 00:05:12,240 --> 00:05:15,839 scale a business into something much much larger, because if you're depending on yourself 62 00:05:15,920 --> 00:05:20,480 to do it so many so much bandwidth you have. Of course, you 63 00:05:20,519 --> 00:05:26,160 can only be in so many places at once. Most people it's one place, 64 00:05:26,519 --> 00:05:29,480 I could be in three or four. But I'm the exception. I'm 65 00:05:29,519 --> 00:05:33,680 a multisker. Hey sot like, how much for these home improvement ones like 66 00:05:34,199 --> 00:05:39,560 your grout and tile cleaning operation there? What did it cost to get into 67 00:05:39,639 --> 00:05:43,439 it? Well? That one good, Yeah, that one cost me about 68 00:05:43,480 --> 00:05:47,920 one hundred and ten thousand dollars if I was buying one franchise. And the 69 00:05:47,959 --> 00:05:55,600 reason I'm and so typically those types of franchises will will range from maybe up 70 00:05:55,639 --> 00:06:00,240 to a few hundred thousand for most of them, depending upon the type it 71 00:06:00,319 --> 00:06:04,360 is. But one thing that I love about these types of franchisees is the 72 00:06:04,399 --> 00:06:10,680 scalability. Meaning and this is why I think it's so interesting for franchise investors 73 00:06:10,680 --> 00:06:14,920 that a lot of people who traditionally invest in real estate, I think this 74 00:06:15,079 --> 00:06:23,519 is an infinitely better model to generate significant income return on your investment and also 75 00:06:23,759 --> 00:06:27,399 build a lot more equity a lot more quickly. But for instance, what 76 00:06:27,519 --> 00:06:30,519 I did with that franchise that I acquired, I didn't buy one franchise. 77 00:06:30,639 --> 00:06:36,240 I bought five franchises, meaning I bought five territories. Okay, so here's 78 00:06:36,279 --> 00:06:40,240 the difference. If I were to do a crumble cookie, if I were 79 00:06:40,399 --> 00:06:45,920 to do a orange theory, I mean, it would have fallen somewhere between 80 00:06:46,040 --> 00:06:49,319 seven fifty two a million dollars to open one. If I opened a second, 81 00:06:49,319 --> 00:06:54,399 one, same thing, if I opened a third, one same thing. 82 00:06:54,800 --> 00:06:57,439 The beauty with these types of concepts is I mean the one that I 83 00:06:57,439 --> 00:07:00,560 bought again maybe about one ten hundred twenty. To do a single franchise, 84 00:07:00,920 --> 00:07:04,959 I bought five franchises. My total investment was about two sixty. Because I'm 85 00:07:05,040 --> 00:07:12,000 just buying more dirt. Okay, I'm doubling, tripling, quadrupling, quintupling 86 00:07:12,639 --> 00:07:16,639 the size of my territory, in effect, doubling, tripling, quadrupling, 87 00:07:16,759 --> 00:07:25,240 quint coupling what my potential income can be. But I'm not spending it proportionately 88 00:07:25,560 --> 00:07:28,800 because I'm just buying more dirt. And then I scale into it over time 89 00:07:28,839 --> 00:07:35,240 by adding more personnel and and word vehicles. Depending upon the type of concept 90 00:07:35,519 --> 00:07:40,720 it is, and what can you make off of one of these franchises. 91 00:07:41,079 --> 00:07:44,240 I mean, I have to give us an income state and just give us 92 00:07:44,279 --> 00:07:46,680 a range here. Yeah, I mean it really depends upon I mean, 93 00:07:47,199 --> 00:07:55,120 is it Are you going to see things that can perform like a McDonald's in 94 00:07:55,279 --> 00:08:00,920 terms of what a grow growth sales can be? Absolutely no, you can, 95 00:08:01,560 --> 00:08:05,879 absolutely can't. Yeah, I mean it really again depends upon what the 96 00:08:05,920 --> 00:08:09,120 concept is. But but you find the margins are I mean, you're getting 97 00:08:09,160 --> 00:08:13,480 food. The margins are going to be small. But if you scale enough 98 00:08:13,480 --> 00:08:20,360 with these types of concepts, you can build McDonald's type income through it without 99 00:08:20,399 --> 00:08:24,040 spending a fraction or only spending a fraction of what it would cost open McDonald's. 100 00:08:24,480 --> 00:08:30,560 Okay, here's a big question. I already disqualified myself as a franchise 101 00:08:30,600 --> 00:08:37,000 z because I can follow instructions. Okay, type of ideal candidate to be 102 00:08:37,080 --> 00:08:41,840 a franchise z. Yeah, most of my candidates. Look, I have 103 00:08:41,000 --> 00:08:46,720 my franchise investor clients that I work with, people who own other franchises and 104 00:08:46,799 --> 00:08:50,600 are always looking to expand the portfolio. But most of my clients are actually 105 00:08:50,600 --> 00:08:56,519 coming from corporate America. They're in a management type position, more an executive 106 00:08:56,519 --> 00:09:01,399 position in some case C suite executive position, and they're looking to start to 107 00:09:01,440 --> 00:09:07,039 build income so they can eventually exit corporate America. And depending upon what the 108 00:09:07,159 --> 00:09:11,000 plan is, I mean, it could be five year exit, it could 109 00:09:11,039 --> 00:09:13,559 be a six month exit. And in some cases people just want to get 110 00:09:13,559 --> 00:09:18,360 out now and try to get into something that they can start generating income in 111 00:09:18,360 --> 00:09:24,799 pretty quickly and replace their their their job income quickly. Okay, so all 112 00:09:24,879 --> 00:09:33,120 right, So corporate corporate types probably excel the best because by nature they're working 113 00:09:33,159 --> 00:09:41,759 in a controlled environment to some extent, and like you pre call franchise agreements 114 00:09:41,840 --> 00:09:48,039 come with guardrails sorect. So your your tile and grout cleaning operation. Um, 115 00:09:48,960 --> 00:09:52,759 how long did it take before it was profitable? I just launched it. 116 00:09:52,759 --> 00:09:58,039 It's in the process of launching while watching now, and I actually I 117 00:09:58,080 --> 00:10:00,840 have a partner. It's going to operate a for me. He's going to 118 00:10:00,879 --> 00:10:05,639 put in ten twelve hours a week to operate it. But no, I 119 00:10:05,000 --> 00:10:09,519 have no bandwidth. I can't I can't put it. I told him that 120 00:10:09,679 --> 00:10:13,759 I'm going to put two three hours a month into it in meetings with him. 121 00:10:13,799 --> 00:10:18,399 But I don't want to be involved in operation. So you mentioned semi 122 00:10:18,399 --> 00:10:20,600 pass and so you got to get a manager. That's got to be the 123 00:10:20,639 --> 00:10:24,799 hardest part and the most important thing. When you enter a franchise that you're 124 00:10:24,840 --> 00:10:30,200 not going to work nine to five or actually eight to seven or eight. 125 00:10:30,480 --> 00:10:33,120 You got to get somebody to do it. You have to incentivize that person, 126 00:10:33,399 --> 00:10:39,360 and you've got to make sure that you're they're treated will opportunities are there, 127 00:10:39,360 --> 00:10:41,080 because if you get a good one, you never want them to leave, 128 00:10:41,240 --> 00:10:46,559 right, correct. Look, some of these some of these franchise models 129 00:10:46,600 --> 00:10:50,399 are simple enough that you can operate and manage to three people without having a 130 00:10:50,440 --> 00:10:56,360 manager. Others just more moving parts too. In terms of me buying five 131 00:10:56,639 --> 00:10:58,919 territories or five franchises, the one that I have, I need a manager 132 00:11:00,039 --> 00:11:03,720 not to start with. So the person who I'm partnering with, he is 133 00:11:03,799 --> 00:11:07,879 going to operate directly, manage it for ten to twelve hours a week. 134 00:11:07,600 --> 00:11:11,559 And we're starting out with a couple of people, and but as we expand 135 00:11:11,559 --> 00:11:13,720 it, then we will place a manager. We'll put a manager in place, 136 00:11:15,360 --> 00:11:18,480 and we may end up with you know, a dozen twenty people working 137 00:11:18,519 --> 00:11:24,080 for us over over time. But it really depends upon the model managers. 138 00:11:24,120 --> 00:11:30,759 A lot of these companies really have that infrastructure already in place. They lay 139 00:11:30,759 --> 00:11:33,840 out how they want you to build it, the best and most efficient ways 140 00:11:33,879 --> 00:11:37,799 to build your business. And some there's enough, there's enough moving parts where 141 00:11:37,840 --> 00:11:41,759 you're really going to need a manager day one, and others not so much. 142 00:11:43,320 --> 00:11:48,320 Okay, uh yeah, So I'm looking there's a lot of the websites 143 00:11:48,320 --> 00:11:56,840 that rate and rank franchise franchises, like Franchise Rankings is Gator. Are they 144 00:11:56,879 --> 00:12:01,320 accurate or are they kind of and I would I would say not so much. 145 00:12:01,399 --> 00:12:05,440 And a lot of the rankings really depend upon what their relationship is with 146 00:12:05,600 --> 00:12:09,480 that franchise company as well, Right, if that makes sense. I see 147 00:12:09,519 --> 00:12:15,039 one here called in Florida, actually called grout Smith. Yeah, there's a 148 00:12:15,039 --> 00:12:18,440 few of those, few of them, right. But what I like about 149 00:12:18,480 --> 00:12:22,440 that category, not not just grout but the home service category in general. 150 00:12:22,919 --> 00:12:28,399 It is a fragmented mom and pop a category that young people are just not 151 00:12:28,440 --> 00:12:33,039 going into anymore. So there is a lack of good contractors to do any 152 00:12:33,080 --> 00:12:39,000 of these types of services. So there's there's yet there's massive demand for it. 153 00:12:39,120 --> 00:12:43,320 And I don't know if you've you know, you try to hire a 154 00:12:43,360 --> 00:12:46,919 contract or a paint or anything like that recently, it's nuts. Right. 155 00:12:46,240 --> 00:12:50,799 So I have a friend he's in the Tampa Tampa, Florida area, and 156 00:12:50,840 --> 00:12:56,639 he shared with me that is h Oa was given some crapp He had to 157 00:12:56,639 --> 00:13:00,320 get his He had to get an exterior of his home painted. He reached 158 00:13:00,320 --> 00:13:03,759 out to a dozen painting contractors. Of the dozen, three got back to 159 00:13:03,840 --> 00:13:07,600 him. Of the three, he scheduled with all three of them, one 160 00:13:07,679 --> 00:13:11,799 showed up. You got it. You got the job. Well, well 161 00:13:11,840 --> 00:13:13,799 not exactly. I mean if the one is showed up. He took some 162 00:13:13,799 --> 00:13:16,759 measurements, never came back, never heard phone. He had to chase them 163 00:13:16,799 --> 00:13:22,279 down. Finally got a hold of the guy and got a price from him 164 00:13:22,279 --> 00:13:24,159 and John, my friend, thought it was an outlandish price, so we 165 00:13:24,240 --> 00:13:26,639 tried to negotiate. The guy said, no, that's my price. So 166 00:13:26,679 --> 00:13:28,960 he said, what the heck? I got a schedule. He went to 167 00:13:30,000 --> 00:13:33,799 schedule with him. The guy was almost a year out. So the category 168 00:13:33,919 --> 00:13:37,480 not just painting, but a lot of things in his category. There's so 169 00:13:37,600 --> 00:13:41,840 much demand and there's a lack of sophisticated players, but franchising is really brought 170 00:13:41,919 --> 00:13:48,919 to that category is a greater level of sophistication, technology, professionalism, and 171 00:13:48,120 --> 00:13:54,360 consequently, franchises our pulling market share away from the mom and pop operators. 172 00:13:54,720 --> 00:13:58,480 Okay, so I'm looking at two of them here on the franchise rankings. 173 00:13:58,519 --> 00:14:05,639 One is called Wow One Day Painting. I assume that they've been around since 174 00:14:05,679 --> 00:14:09,159 two thousand and eight. They don't have that many units. They only got 175 00:14:09,200 --> 00:14:15,840 twenty two units ninety thousand to get into it, And I mean, is 176 00:14:15,919 --> 00:14:22,639 that that Look? I honestly probably not. Look, there's over four thousand 177 00:14:22,720 --> 00:14:28,960 different franchise concepts out there. I would comfortably tell you I would stay away 178 00:14:30,039 --> 00:14:33,799 from most of them, not that they're bad companies, but there's some really 179 00:14:33,919 --> 00:14:39,519 good concepts out there. But trying to find them is kind of like trying 180 00:14:39,559 --> 00:14:43,120 to find a needle in a haystack. Because when you're going online, which 181 00:14:43,159 --> 00:14:46,840 is the typical way people start to start the franchise searches to go online, 182 00:14:48,759 --> 00:14:52,360 Unfortunately, first of all, the vast majority of people that are doing this 183 00:14:52,960 --> 00:14:58,080 are landing on portals like You're like, you just landed on and these as 184 00:14:58,120 --> 00:15:01,519 somebody franchise companies are advertising the portals. It's unfortunately didn't boast up, but 185 00:15:01,600 --> 00:15:07,879 better come pay for play here obviously exactly exactly, and and and most of 186 00:15:07,879 --> 00:15:13,600 the people that come through the portals and land on these franchise companies end up 187 00:15:13,639 --> 00:15:16,159 not being qualified. So the franchise companies end up wasting a lot of time. 188 00:15:16,240 --> 00:15:20,919 But the other thing is they're just showing you what they want you to 189 00:15:20,960 --> 00:15:26,440 see. And it's impossible to try to evaluate these companies using portals, using 190 00:15:26,480 --> 00:15:30,639 these using these sites. Okay, so here's another one. It's funny when 191 00:15:30,639 --> 00:15:37,360 you mentioned like getting stuff done handyman. There's Handyman Connection out of Ohio. 192 00:15:37,440 --> 00:15:43,559 They got seventy five ye and they got to really ninety six point two percent 193 00:15:43,720 --> 00:15:48,399 review for what that's worth one hundred k to get in And I mean, 194 00:15:48,559 --> 00:15:54,039 I see it that it's so hard to find these handyman. My handyman just 195 00:15:54,399 --> 00:16:02,360 reported back to I'll tell you what, I was heartbroken. If I hadn't 196 00:16:02,399 --> 00:16:06,720 known he was facing deportation, I would have adopted him so he'd be my 197 00:16:07,000 --> 00:16:10,120 son and they wouldn't have been able to send him back. Well, don't 198 00:16:10,159 --> 00:16:12,759 worry he'll be back. Yeah, yeah, I hope. So walk back 199 00:16:12,799 --> 00:16:18,080 across the border. Hey, my whole neighborhood shed a tear many two. 200 00:16:18,960 --> 00:16:25,879 Avi was so good and he showed up and sometimes he didn't charge me enough, 201 00:16:25,919 --> 00:16:27,919 and I said, you know, take another hundred dollars. You're not 202 00:16:29,039 --> 00:16:32,840 charging enough for the amount of time you spent here. Yeah, how good 203 00:16:32,879 --> 00:16:37,240 he was. But to find guys like that, you almost you go to 204 00:16:37,320 --> 00:16:40,840 a franchise, at least you might have a shot, right yeah, well 205 00:16:41,360 --> 00:16:45,360 yeah, but from an investment standpoint, if you want to be the franchise 206 00:16:45,759 --> 00:16:48,600 and you are, you are in corporate America. You're not going to go 207 00:16:48,639 --> 00:16:52,200 out and you're not going to do the handyman work, right. So what's 208 00:16:52,240 --> 00:16:59,919 important is to identify franchises that have semi passive models. They have the infrastru 209 00:17:00,039 --> 00:17:03,919 ructure in place to support you. And look, you can look at two 210 00:17:03,960 --> 00:17:07,240 concepts that do exactly the same thing and it can be a massive difference between 211 00:17:07,559 --> 00:17:12,400 the two concepts. So I mean, top between ten and twenty percent of 212 00:17:12,440 --> 00:17:18,960 franchises in any given category of franchising or solid businesses. A lot of them 213 00:17:18,960 --> 00:17:22,519 are not. A lot of them get launched and they just never go anywhere. 214 00:17:22,599 --> 00:17:26,519 So if it's a franchise that doesn't have growth, and it doesn't matter 215 00:17:26,519 --> 00:17:29,319 how old the franchise is. I mean, a franchise could be twenty five 216 00:17:29,400 --> 00:17:33,839 years old, but if there's only twenty units out there, twenty franchise ease 217 00:17:33,960 --> 00:17:38,480 out there, I'd stay far clear of it. However, if franchises, 218 00:17:38,559 --> 00:17:44,000 let's say three years old, but it has five hundred franchises, usually there's 219 00:17:44,000 --> 00:17:48,839 a reason for that, and often it's the franchise investors buying up territory with 220 00:17:48,920 --> 00:17:52,559 that particular franchise because they recognize it as a strong financial opportunity. Right. 221 00:17:52,640 --> 00:17:56,079 And it's interesting. I go to this place called the stretch Zone, which 222 00:17:56,079 --> 00:18:02,440 is like wonderful from my back thing else I'm looking here. It says they're 223 00:18:02,440 --> 00:18:08,599 making three hundred and fifty seven thousand according to sharpsheets, and one hundred eighty 224 00:18:08,640 --> 00:18:14,599 seven locations, and you know, it doesn't take a whole lot of money 225 00:18:14,599 --> 00:18:19,400 to get into it. Three year payback and hey, I can vouch for 226 00:18:19,480 --> 00:18:25,240 it. But again, I think that one of the biggest stumbling blocks with 227 00:18:25,440 --> 00:18:32,440 all of these franchises is finding employees in this day and age, no doubt, 228 00:18:33,000 --> 00:18:36,119 and it really depends upon the category that you're in. If you're if 229 00:18:36,119 --> 00:18:41,480 you're talking about hospitality, it's exceedingly difficult to get in keep employees. If 230 00:18:41,519 --> 00:18:47,279 you are talking about something maybe in boutique fitness, like the stretch zone that 231 00:18:47,319 --> 00:18:52,640 you mentioned, it's more difficult now than it was three years ago, but 232 00:18:52,799 --> 00:18:57,240 it's still doable. Same thing with beauty. And again and looking at the 233 00:18:57,279 --> 00:19:02,720 service category you be at home service or home service also crosses over to B 234 00:19:02,799 --> 00:19:07,480 to B. That's easier. It's not perfect. You're paying more now, 235 00:19:07,720 --> 00:19:11,880 but there's so much more margin in those types of concepts than there is in 236 00:19:11,519 --> 00:19:15,799 when you're doing brick and mortar retail. You are tied to a lease for 237 00:19:15,880 --> 00:19:18,119 at least five years. You have the brick and mortar retail build out which 238 00:19:18,200 --> 00:19:23,559 is becoming more and more expensive, versus the concepts that you can potentially run 239 00:19:23,599 --> 00:19:27,079 from an office, small office, maybe a small you know, some flex 240 00:19:27,079 --> 00:19:32,279 space, small warehouse, or in many cases even from your from your home. 241 00:19:32,400 --> 00:19:36,359 So the startup costs are heat lowery. So I have to tell you 242 00:19:36,400 --> 00:19:41,160 a story. So there's a Jersey Mike's. They've been working on it probably 243 00:19:41,759 --> 00:19:45,960 for almost a year. I mean they could they construct in Florida, they 244 00:19:45,960 --> 00:19:53,960 build high rises faster than than this. And it's like, but Jersey mikes 245 00:19:55,000 --> 00:19:57,640 seem to be uh like, I never saw one to go out of business. 246 00:19:57,680 --> 00:20:02,880 They all seem to be busy all the time, technology, the apps 247 00:20:02,920 --> 00:20:06,519 and everything else. Is that a good franchise. Yeah, I mean it's 248 00:20:06,519 --> 00:20:10,200 a solid franchise. I mean again, depending upon what you want to accomplish, 249 00:20:10,839 --> 00:20:14,480 it's not going to be inexpensive to get into. And sometimes when you 250 00:20:14,559 --> 00:20:18,000 look at what the price range is online, it's not necessarily representative of what 251 00:20:18,079 --> 00:20:22,319 the real cost is. Usually the cost is higher. But you're I mean, 252 00:20:22,480 --> 00:20:26,440 you're talking about typically somewhere between a half a million eighty to a million 253 00:20:26,440 --> 00:20:29,039 dollars to open one. Unless it's free standing, then it's going to go 254 00:20:29,160 --> 00:20:33,640 up keep in a good bit a good bit higher. Um. But you 255 00:20:33,680 --> 00:20:37,119 know food, what the issue that I have with food is that the margins 256 00:20:37,160 --> 00:20:45,039 are low, you have high turnover minimum wage employees. It's it's become exceedingly 257 00:20:45,079 --> 00:20:51,039 difficult to hire in that in that category. So it's not when again, 258 00:20:51,079 --> 00:20:52,680 when my when my clients say to me, Bob, show me the best 259 00:20:52,680 --> 00:20:59,160 financial opportunities, I don't show them food all right, and you're not You're 260 00:20:59,160 --> 00:21:02,680 not going to do food on a part time basis unless you have a management 261 00:21:02,680 --> 00:21:06,039 team and you develop multiple units and you have a solid management team that's going 262 00:21:06,079 --> 00:21:08,720 to do that for you. All right. Well, hey, you've been 263 00:21:08,799 --> 00:21:12,720 a wealth of knowledge here, Bob. I know that people are gonna want 264 00:21:12,720 --> 00:21:18,000 to contact you and find out more. What's the site that we find you 265 00:21:18,039 --> 00:21:22,240 at. Franchise with Bob dot com and if you like, just reach out 266 00:21:22,240 --> 00:21:26,960 to me. I'll send you. I'll send you my book. Be happy 267 00:21:26,960 --> 00:21:30,160 to do so. Oh great, Yeah, that's that's excellent. So franchise 268 00:21:30,240 --> 00:21:34,680 with Bob dot com. It's in the notes to this interview on Financial Survival 269 00:21:34,759 --> 00:21:37,960 Network dot com. And when you go there, please sign up for your 270 00:21:37,960 --> 00:21:42,960 free newsletter U. If you've got a question for Bob or myself, just 271 00:21:42,960 --> 00:21:48,400 shoot us an email. K L at karreluts dot com. Bob really barely 272 00:21:48,440 --> 00:21:52,640 scratched the surface of franchising. I'd like to ask you if you'll be available 273 00:21:52,640 --> 00:21:56,799 to come on again. We'd love to have you back. It would be 274 00:21:56,799 --> 00:21:59,400 my pleasure. All right, great, Well, we'll talk to you soon. 275 00:21:59,519 --> 00:22:02,960 Be well, thank you, I'll go. Thanks for listening to carry 276 00:22:03,039 --> 00:22:08,240 luns's Financial Survival Network your solution to today's trying times. For the latest, 277 00:22:08,279 --> 00:22:15,960 go to Financial Survival Network dot com. Financial Survival Network now more than ever