Podcast Summary: The Brian Beers Show

Episode 293: THIS is How Long to Make $17K/Mo With Franchises

Date: October 20, 2025
Host: Brian Beers

Episode Overview

In this episode, host Brian Beers dives deep into the often-asked question: "How long does it really take for a franchise to replace your income?" Drawing from his extensive experience building an eight-figure franchise portfolio, Brian provides practical advice and real-world examples, breaking down what factors influence how long it takes to reach your financial goals with a franchise. He covers the importance of unit economics, margin management, capital structure, your role, and strategic choices like side-hustle franchising. The episode is packed with actionable insights for both aspiring and active franchisees.

Key Discussion Points & Insights

1. Understanding Unit Economics

[01:00 - 06:00]

• Unit Economics Defined:
  Brian stresses that instead of asking "How much does a franchise make?", you should understand "How long will this franchise take to produce the income you want?"

  “The right question to ask is: How long until this one can produce the money that I need it to make?” — Brian ([01:15])

• What is a ‘Unit’?
  It varies by business model (e.g., a retail location, a territory, or a revenue-generating truck).

  • Example for Midas shops: One location averages $150,000/year in cash flow.
  • Example for a mobile kitchen equipment cleaning business: One truck drives revenue; true profit emerges after overhead is covered (e.g., $250k per truck in revenue, but only $75k profit on two trucks at 15% margin).

• Scaling Through Units:
  You can “stack” units—multiple shops or trucks—to achieve desired income.

2. Nailing Your Margins & Costs

[06:00 - 13:00]

• Controllable Major Costs:
  Three main cost categories to manage:

  • Payroll
  • Cost of Goods Sold
  • Overhead (rent, equipment, etc.)

  “All those things are going to die by a thousand cuts because our payroll is going to get out of line.” — Brian ([09:45])

• Margin Management:
  Examples are given (e.g., 15% margin on mobile businesses) to illustrate the impact of cost control on profitability.

3. Realistic Ramp Periods

[13:00 - 18:30]

• Ramp Time Matters:
  The path to replacing your income varies; typically determined by how quickly you can build to required unit revenue/margin.

  • Talk to current franchisees for honest ramp time estimates.
  • If no one has reached your target revenue in your desired timeframe, adjust expectations or consider another model.

  "If you only have three months to ramp this thing up... might not be a good decision.” — Brian ([15:40])

• Building Pro Formas:
  Construct detailed financial models to clarify viability in your context.

4. Capital Structure & Debt Considerations

[18:30 - 23:00]

• Assessing Debt Impact:
  Those who self-fund or use retirement funds (ROBS) carry less monthly risk than those who max out loans.

  • High debt requires significant monthly payments, eroding cash flow and increasing pressure.

  “The worst thing you can do is drown yourself in debt and run out of money before you even get started.” — Brian ([20:55])

• Start Small When Possible:
  Better to begin with a low-cost, self-funded approach than overleveraging into a big commitment.

5. Your Role: Operator vs. Investor

[23:00 - 31:00]

• Hands-On Operator:
  Direct involvement usually brings quicker results; your own effort drives success.

  • Case Study:
    Brian’s friend left a six-figure sales career to operate a high-ticket home service franchise hands-on, replacing his income in year one and growing net income to nearly $1M annually by year four.

    “He admits: it wouldn’t have happened if he wasn’t the one driving it forward every single day.” — Brian ([26:00])

• Passive Investor (Manager-Driven):

  • Expect more time to reach profitability.
  • Managers will never care as much as the owner; plus, skilled managers cost significant money.
  • Increased risk if operator leaves.

  “If you're in the sidecar, someone else is riding — you’re going to go way slower.” — Brian ([30:10])

6. Low-Cost, Side Hustle Franchises

[31:00 - 34:00]

• Stepping Stone Options:

  • "Stepping stone" franchises (e.g., Frios Pops, gourmet popsicle trucks) let you build on the side without quitting your job.
  • Lower investment (~$75k), work evenings/weekends, flexible ramp to replace income or build confidence.

  “You can tiptoe into entrepreneurship and then at a certain point, maybe you’re making enough money to have the confidence to quit your job.” — Brian ([33:15])

Notable Quotes

• “In franchising, you’re going to hear this term ‘unit economics’... what it means is you have a unit of measurement. That unit can be a retail location, it can be a territory, it can be a truck.” – Brian ([01:45])
• “It’s really about how much your debt is. If you have a $5,000 a month payment, that’s money that could be going to you, but instead it’s going to the banks.” – Brian ([21:45])
• “There’s this question, how do you de-risk it? In some ways, franchising helps... you should have a proven model, systems, support, due diligence you can do.” – Brian ([28:30])
• “If you want my help, there’s a link below... My goal here is to help teach you how to build an eight-figure franchise business.” – Brian ([34:45])

Key Takeaways

• Don't generalize franchise returns: analyze specific unit economics for the brand/model you're interested in.
• Managing costs, especially payroll and overhead, is critical to hitting your goals.
• Ramp-up to income replacement depends on realistic forecasts, capital structure, and—most of all—your level of involvement.
• Going all in as an operator can accelerate income replacement, but comes with higher personal risk.
• “Side hustle” franchises may allow a safer, staged entry into entrepreneurship.
• Avoid overleveraging with debt—start small if needed.
• Due diligence is crucial: speak to current owners, scrutinize the Franchise Disclosure Document, and pressure-test your financial assumptions.

For those interested in more resources, Brian invites listeners to book a free call with his team and to download his Eight Figure Playbook for deeper guidance.