Bridger Pennington explains how to scale a franchise business: raise a fund to buy 70-100 locations, negotiate lower fees with bulk purchasing power, run them with a centralized team, then sell the portfolio to return capital and profits. The bottleneck isn't customer demand, it's access to capital.
Chapters
Here's how a franchise owner could use a fund to scale. Most franchises will charge anywhere from $100 grand to up to $1 million to buy a franchise from them and then open a location for a McDonald's or a Taco Bell or a pizza joint in your area or hometown. So, I have a buddy that actually has raised a fund and he actually instead of buying 1 or 2 franchises, he goes and buys 70 to 100 franchises and also negotiates lower franchise fees from the corporate owner. He'll then use his own management team and company to make these stores very efficient and they end up performing in the top 20% of all corporate stores. He takes that portfolio after a few years and sells it to somebody else for a multiple and pays back his investors and makes millions of dollars doing this. It's a pretty cool way to use a fund to scale franchise businesses.