Jon Ostenson – “Consider Franchising to Add an Income Stream to Your Financial Plan”

“When you're a business owner, you're building cash flows as well as an asset in that business that you can sell as long as you run it halfway decent.”  — Jon Ostenson

Jon is CEO of Franbridge Consulting and Capital, a company devoted to serving franchise opportunities, then aligning investors with top-performing opportunities leading some of those investors to be actual operators.

In this episode, Jon is going to help us look at this exciting class of investments.

Listen in!

  • There are 4000 different brands roughly in the US involved in franchising across a number of different industries and sectors.
  • Coming out of COVID, more and more people want that sense of control, flexibility and freedom that comes through business ownership.
  • We do see an unprecedented level of interest out there towards franchising.
  • I just see franchising as really going into business for yourself, but not by yourself because you've got that franchisor on the sideline and other franchisees around the country.
  • While having that is not a guarantee of success, it does give you a lot of confidence going in.
  • A study by Rancor School of Business found franchise businesses trading at a multiple typically of one and a half-time as compared to non-franchise businesses.
  • I tell clients that there's a lot of ways to make money some more desirable and easier than others.
  • To buy into a franchise, you pay a franchise fee and meet costs for the equipment build out.
  • Some of the ways in which people fund their franchise business include self-funding, retirement funds through what is called a Rob's program or through SBA loans.
  • The way I work with clients is I try to streamline the process and make it as easy for them and allow them to focus as well as possible.
  • Franchising isn't risk-free, but you de-risk things a lot.

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