The Brian Beers Show — Episode 286
Title: The Step-by-Step Guide to Buying a Profitable Franchise
Date: September 26, 2025
Host: Brian Beers
Episode Overview
Brian Beers, a seasoned entrepreneur with over a decade in franchising and builder of an 8-figure franchise business, provides a straightforward, step-by-step walkthrough of the franchise buying process. Drawing on his extensive experience, Brian breaks down common pitfalls, clarifies industry misconceptions, and gives listeners practical, actionable insights to help them find, vet, and acquire a profitable franchise—without the hype and fluff.
Key Discussion Points & Insights
1. Start with Self-Reflection: Know Your Goals
- The foundation to success is clarity about personal goals.
- Why do you want a franchise? Freedom, income, family time, legacy, or something else?
- Ensure your business choice matches your desired lifestyle.
- Quote:
"Because when you own a business and specifically a franchise, your life will now evolve around that for a period of time... You need to start with yourself and really get clear on what it is that you're trying to achieve here." (02:10)
2. Sifting Through Franchises: The Quality Challenge
- The majority of brands aren't up to par.
- Over 3,000 franchise options, but "80% of them are crap." (03:31)
- Many founders lack operational systems and true franchisor infrastructure.
- What makes a good franchise?
- Must have both strong industry experts and robust franchising systems (support, training, community).
- Avoid relying solely on online rankings or “Top 100” lists—these are paid marketing, not merit-based.
- Quote:
“The reality is they [franchise directories] don’t really have the systems and they’re not dedicated on it. Because franchising, to be really successful, the franchisor needs two components.” (04:12)
3. Using Franchise Brokers Wisely
- Broker advantages and caveats:
- Good brokers tailor their recommendations to your goals and skills; bad ones just push a handful of brands.
- Brokers are paid by franchisors, not buyers.
- Brian's approach:
- Brian and his team act as brokers, emphasizing personalized fit and honest guidance.
- Quote:
“We are franchise brokers. Our team works with you one on one to go through all these things... If you want my help, you can work with our team or... I’m happy to help direct you to someone else if you weren’t a good fit for us.” (10:29)
4. Matching Models to the Person
- Retail, contractor, team, and truck businesses:
- Not all business models fit every person or life stage; consider stepping-stone franchises for experience before scaling up.
- Quote:
“Sometimes a franchise might be a good stepping stone... Once you start to build these skills... it's way easier to make that jump to the bigger business than to go totally cold as an employee to this larger business.” (12:28)
5. Initial Conversations: Red Flags & Green Lights
- Engage with franchise development reps:
- Examine if they ask about your goals, not just push the sale.
- The best franchises rigorously screen applicants and turn people away to protect the group's profitability and reputation.
- Quote:
“The best brands have a sales process that turns people away, that they realize, like, we don’t want everybody, we want this specific person because we value franchisee profitability.” (15:59)
6. FDD Review: Crucial Document Deep Dive
- The Franchise Disclosure Document (FDD):
- Mandatory document, ~100 pages, identical format across brands.
- Key items to review:
- Item 6: Ongoing fees (royalties, brand fund, etc.)
- Item 7: Startup costs (range based on real franchisee data)
- Item 19: Financial performance representation (could be very detailed or vague; beware of cherry-picked numbers)
- Free access to many FDDs via Wisconsin’s FDD search database.
- Quote:
“Item 19 is like the big popular one that shows financial performance... Sometimes brands show you things to make it really look good, but it’s like the corporate location, it doesn’t really tell you the condition of the franchisees, which is really what you’re after.” (22:06)
7. Validation: The Franchisee Reality Check
- Speaking directly to existing franchisees is the gold standard.
- Use contact info in the FDD to reach out; some brands organize group validation calls.
- Ask about challenges, regrets, real financials, and day-to-day reality.
- Get a perspective from both star and struggling operators.
- Quote:
“You want to get into the support and the marketing and the financials and the regrets like hey, would you do this all over again, right? Would you recommend this to a friend or family?” (26:33)
8. Securing Funding
- Most buyers use SBA loans, which commonly cover up to 80% of startup costs.
- Brian notes reputable loan brokers and emphasizes the importance of securing financing early to avoid wasted time.
- Quote:
“Definitely want to line up your financing as early as possible because it can draw out and this will help ensure you know what you can afford and you don’t waste any time on things that you can’t.” (30:47)
9. Discovery Day: Final Fit Assessment
- At HQ: meet the real people, see the culture.
- Vet them as much as they vet you.
- Observe fellow candidates—would you be proud to join this cohort?
- Brands may reject ill-fitting candidates after Discovery Day; be professional and genuine.
- Quote:
"Culturally, do I vibe with them? Are these the type of people that I want to surround myself with?" (33:02)
10. Signing & Legal Precautions
- Review the franchise agreement with a specialized attorney ($2,000–$3,000 investment).
- Attorneys help you understand what you’re signing and might discover contract traps or hidden lawsuits.
- The franchise agreement is intended to protect the brand, but some franchisors abuse this power.
- Quote:
“The franchise attorney comes in and says, hey, listen, this is pretty standard or hey, this is like totally crazy here... Sometimes they can uncover some really bad stuff that was like hidden all along.” (39:05)
11. Training, Onboarding & Launch
- Expect a chaotic initial 90 days.
- Intensive training, admin setup, networking; speed to launch varies by business type (retail vs. services).
- Quote:
“You're going to have probably a 90 day, just like Gauntlet that's going to get thrown down where it's going to be chaos.” (43:26)
12. Avoiding Disaster
- Most franchise horror stories stem from flawed processes or poor diligence.
- Don’t rush or skip steps, and use professionals where needed.
- Quote:
"If you are looking to buy a franchise, the best thing you could do is not get into that situation by ensuring you follow the right process." (47:56)
Notable Quotes & Memorable Moments
-
On the risk of franchising:
“One big mistake in franchising can cost you everything. Your life savings, your retirement, your kid’s college fund.” (00:04)
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On due diligence:
“I have a whole list of franchise due diligence questions that, you know, everybody that we work with gets... it helps you walk through kind of all the questions that I would ask when I’m going through it.” (18:33)
-
On brand integrity:
“If I have a neighboring franchisee who is not up to brand standards... that hurts my business. The franchisor needs to use their power and the only way to get that power is the franchise agreement.” (40:30)
-
On validation calls:
“Whatever challenges they’re facing, you’re probably going to face the same.” (26:59)
-
On avoiding franchise traps:
"There’s other brands that try to rush this process... they end up getting a brand that has lofty promises, that don’t have the support, and then they’re locked into this terrible contract and they feel absolutely stuck.” (46:08)
Important Timestamps
| Timestamp | Segment | Details | |-----------|---------------------------------------------|------------------------------------------------------------------------------| | 00:04 | The risks and reality of franchising | Franchising is not risk-free—stakes and consequences explained. | | 02:10 | Importance of goal setting | Self-reflection as the first and most important step. | | 03:31 | Franchise market overview | Why 80% of franchise opportunities are not worthwhile. | | 10:29 | Working with brokers | The difference between good and bad brokers; Brian’s own approach. | | 12:28 | Choosing the right franchise model | Different models for different stages and personalities. | | 15:59 | Franchise sales process—real screening | Good franchises filter hard for the right candidates. | | 22:06 | FDD review | How to analyze critical sections of the Franchise Disclosure Document. | | 26:33 | Franchisee validation | How and what to ask current franchisees for real insights. | | 30:47 | Funding and SBA loans | The importance of early financing and best providers. | | 33:02 | Discovery/Confirmation Day | Evaluating brand culture and fit during in-person meetings. | | 39:05 | Legal review of franchise agreement | Why and how to use a franchise attorney. | | 43:26 | Initial onboarding/training | The intensity and chaos of the first 90 days. | | 46:08 | Dangers of skipping steps | How rushing through the process leads to getting stuck in bad contracts. | | 47:56 | Summary advice | Final words of warning and encouragement; use the right process. |
Summary & Takeaways
Brian delivers a no-nonsense, detailed blueprint for buying a profitable franchise, rooted in hard-won experience. He stresses:
- Start with a clear understanding of your personal and financial goals.
- Cut through the noise—most franchises aren’t worth your time.
- Leverage qualified professionals (brokers, attorneys, lenders) but stay involved at every step.
- Use real validation—speak to current franchisees, not just sales reps.
- Never skip diligent, professional legal review.
- Recognize that owning a franchise can be life-changing—for better or worse—depending on the fit and the process you follow.
If you’re considering franchising, this episode is an actionable, insightful roadmap—with plenty of war stories and wisdom—to help ensure your franchise journey leads to real wealth and freedom, not regret.
