The Franchise Gold Rush: How to Build Wealth, Cash Flow, and Real Estate Through Franzy | Alex Smereczniak

Summary

The Science of Flipping – Episode Summary

Podcast: The Science of Flipping
Host: Justin Colby
Guest: Alex Smereczniak (Founder, Franzy.com)
Title: The Franchise Gold Rush: How to Build Wealth, Cash Flow, and Real Estate Through Franzy
Date: December 12, 2025

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Episode Overview

This episode centers around the explosive opportunity in franchising as a wealth-building and cash flow strategy, especially with the rise of Franzy.com—a new platform comparing itself to Zillow, but for franchises. Host Justin Colby and guest Alex Smereczniak deep-dive into how franchising works, the intersection with real estate investing, and how Franzy is democratizing small business ownership by making franchise information transparent and accessible.

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Key Discussion Points & Insights

1. What is Franzy.com and Its Mission?

• Franzy’s Mission (00:44):

  • “Our mission with Franzy is to help enable the next 1 million entrepreneurs… through democratizing access to ownership in businesses, starting with franchising.” – Alex Smereczniak

• Platform Features (00:44–02:20):

  • Franzy acts as the “Zillow for buying and selling small businesses.”
  • Over 4,000 franchise brands listed, with extensive data: investment costs, average revenue, team, territory, and compatibility with risk profiles.

• Two Entry Points (01:47):

  • New units/territory sales (de novo)—develop your own franchise from scratch.
  • Working towards a resale marketplace for buying existing franchises.

2. Franchising as a Wealth-Building Strategy

• Home Services as a Sweet Spot (03:06–05:00):

  • High average revenues (often $1M+) with lower startup costs ($150k–$250k).

  • Lower capital needs than restaurants—“seven figure revenue for a low six figures investment.”

  • AI Disruption Resistant: Physical services (roofing, windows, HVAC) are “safer for a little bit longer.”

• Franchise Success Rate (09:55):

  • “Franchises are five times more likely to succeed in the first five years than traditional startups.”

3. Real Estate Angle in Franchising

• Double-Dip Strategy (06:53–09:22):

  • Savvy franchisees may buy/develop the underlying real estate for their franchise, rent it back to themselves, and use higher cash flow to finance additional units.
  • “Some franchisees purposely pay themselves higher than market rent because then they can go borrow against that cash flow on the real estate side to go over in their second and third one.” – Alex (07:59)

• Bigger Picture:

  • McDonald’s cited as an example of real estate disguised as fast food.

4. Scalability & Exit Potential in Franchising

• From One Unit to an Empire (10:00-15:00):

  • Stories of real people scaling from zero to 100+ locations across multiple brands.
  • “If you’re willing to work hard, raise capital... anyone can literally go do this. It’s the American dream.” (05:07, Alex)

• Operating at Scale (13:03):

  • Hire general managers as you grow; “You can take the same lessons, hire a GM, pay them well, give them some profit sharing... you’re looking for location 4, 5, and 6.” (14:28, Alex)

• Exit Multiples:

  • Franchises often sell for higher EBITDA multiples (4–10x) because of the brand and proven systems.

5. Barriers to Entry & Accessibility

• Range of Investment (15:14–17:18):

  • Not just mega-brands; some franchises cost as little as $10,000.
  • “There really is a franchise for everybody... with as little as 30k in cash and an SBA loan.” (16:14, Alex)

• Important Caveats:

  • Don’t go “all in” without a financial safety net.
  • Franchising can be buying a job (especially with models like Chick-fil-A) or true entrepreneurship (with emerging brands).

6. Hottest Franchise Trends Right Now

• Golf Simulator Franchises (18:29–22:48):

  • “There’s a few categories. One is golf right now is just taking off…these indoor golf simulator franchises are taking off. They’re almost like Anytime Fitness.” (18:29, Alex)
  • Appealing economics: No employees, BYOB, $200k–400k initial build, cash flowing $100k–$150k/year.

• Plug-and-Play or Entrepreneurial Opportunity? (24:45–26:37):

  • Mature brands (“over 50 units”) have tight playbooks and systems.
  • Early-stage brands offer more room for creativity but require more entrepreneurial effort.

• Matching Process (24:45–25:46):

  • Franzy uses AI and human coaching to match entrepreneurs with the right brands based on goals, background, operational readiness, and financials.

7. Franzy’s Value Proposition for Franchise Buyers & Sellers

• Transparent, Alignment-driven Platform (28:32–32:35):

  • Like Zillow: all brands, all relevant data in one place, side-by-side comparisons.
  • Human coaching layer for guidance, fit, and next steps.
  • No misaligned incentives: “We get paid by the brands a flat dollar success fee so that we have no incentive to promote one brand over another.” (30:25, Alex)

• Solving Industry Pain Points:

  • Traditional brokers take 60%+ commission of the franchise fee (often tens of thousands per sale), draining resources that could go to onboarding and supporting new owners.

8. Alex’s Entrepreneurial Origin Story

• First Business in College (33:19–36:15):

  • Bought a campus laundry service at Wake Forest for $30k (seller financed with professor help).
  • Scaled revenue 10x, sold for 10x what he paid.
  • Subsequent journey: Left consulting, launched 2U Laundry (venture-backed, scaled via franchising) and Laundry Lab (the brick-and-mortar franchise).

• From Franchisee to Platform Creator (38:48–44:26):

  • “Light bulb” moment came paying out excessive commissions to franchise brokers in his own franchise journey.
  • Created Franzy to keep value within brands, empowering both franchisees and franchisors.

9. Who Should Use Franzy?

• Ideal User Profile (44:36–44:55):

  • “50k in cash is ideal…$150k net worth…credit above 700 is good, above 650 can still work.”

• Simple Access:

  • Email Alex directly, connect via social media, or go to Franzy.com for personalized matches and free coaching.

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Notable Quotes & Memorable Moments

• On Franchising’s Accessibility:

  “There really is a franchise for everybody…if you want to go do this and depending on what your goals are, I think you have to have, I’d say, to do this right, 30k minimum in cash and then go borrow. An SBA loan is meant for businesses like this.” (16:14) – Alex

• On Real Estate Leverage:

  “Some franchisees purposely paying themselves higher than market rent because then they can go borrow against that cash flow on the real estate side to go open their second and third one… Banks love it. They go give you more money to do it again.” (07:59) – Alex

• On Plug-and-Play vs. Entrepreneurial Franchising:

  “If you came through and you said…‘here are my goals’, we go match of the 4,000 specific brands, partially using AI…Because you don’t want to buy a business that in a year you’re like, ‘I don’t really align with that’.” (24:45) – Alex

• On the Platform’s Integrity:

  “We get paid by the brands a flat dollar success fee so that we have no incentive to promote one brand over another. And we’re going to keep it that way from here on out.” (30:25) – Alex

• The Broader Franchise Landscape:

  “The number one [misconception] is that franchising is just these big brands. McDonald’s, Subway…There’s truly a franchise for just about any concept you can imagine…For most people that have 30k even saved up, you can get into a franchise business.” (48:02) – Alex

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Important Timestamps by Topic

• Franzy Intro & Mission: 00:44–02:20
• Marketplace Mechanics, Buying vs. Resale: 01:47–02:15
• Home Services Opportunity: 03:06–05:00
• Franchising & Real Estate Play: 06:53–09:22
• Scaling to Multiple Units/Story of McDonald’s Empires: 13:03–15:00
• Average Franchise Investment/Returns: 15:14–17:18
• Golf Simulator & Hot Opportunities: 18:29–22:48
• Plug and Play, Coaching, and Brand Matching: 24:45–27:13
• Franzy Platform Structure, Comparison to Zillow: 28:32–32:35
• Origin Story & Pain Points: 33:19–38:48
• Who Should Use Franzy, Client Profile: 44:36–44:55
• Biggest Misconceptions: 48:02–49:36
• Final Thoughts, Vision, and Access Points: 52:08–end

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The Takeaway

Franchising is far broader, more accessible, and potentially lucrative than most realize. Franzy.com is aiming to become the go-to platform for franchise discovery, due diligence, and matching—removing broker conflicts and empowering entrepreneurs of all backgrounds to leverage systems and real estate for powerful, scalable wealth.

Want in? You can get matched, connect with real people, and explore thousands of brands—whether you’re a hands-on operator, an investor eyeing the real estate angles, or after long-term legacy plays.

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Find out more: Franzy.com
Contact Alex directly via [e-mail] or on all major platforms as “Alex from Franzy”.

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Transcript

[A]

What is up the Science of Flipping Family. Welcome back to another incredible episode. This guest is phenomenal. He's 33 years old. He's already exited two business. He's on his third. What I think swan song outro. And if you are in business, this is going to be an episode that you want to listen to because Franzi.com is taking over. Alex Smirsnak is here. All right, dude. Well, excited to have you here. You know, you're 33, as I was just giving you a little bit of a hard time. You've already built this incredible, incredible resume. With two exits, you're working on a third. Franzi.com is phenomenal. But let's jump into to Franzi to start. What is Franzi? What's your mission? What are you thinking about moving forward in the next three to five years with it?

[B]

Yep. So our mission with Franzi is to help enable the next 1 million entrepreneurs starting in the US and the way that we're going to do that is through democratizing access to ownership in businesses, starting with franchising. So think of Franzi is the Zillow for buying and selling small businesses. So you have all this data. 4000 brands, investment cost, average revenue. Who's the executive team behind it, what territories are available? Does this match my risk tolerance? All the stuff that you need to do, just like Zillow has square footage, bedroom, school district.

[A]

Yeah.

[B]

Franzi has that for small business. All at your fingertips. Don't have to talk to a broker unless you want to. Don't have to commit to anything unless you want to. It's all just the data and the information that you need and the support that you need to get lending and finding the right. The right brand.

[A]

No kidding. So when you think like mergers and acquisitions is such a big topic right now, I've had more than a handful of people here as guests with that. Does this play into that realm of merger and acquisitions? Is this just the franchise model? How are we [e-mail]?

[B]

yep. So for now, it's just de novo units or territory. So new net, new development of, you know, a Jimmy John's or a Gutter Brothers franchise, a service business where you don't need retail. You would buy the territory for Fort Lauderdale or for Miami and then go develop that out and start it from scratch. Yeah, we are starting to work towards a resale marketplace where Justin could come on and also buy the existing Jimmy John's franchisee in Miami or the existing Gutter Brothers territory.

[A]

Yeah.

[B]

Depending on, you know, where you want to jump in. Some people like an existing business.

[A]

Yes.

[B]

Other people want to. You have their stamp on it and build it up from, from scratch with the franchisor.

[A]

So we are talking to any and all entrepreneurs here because at the end of the day I today, Justin Colby can go to franzi.com and I can say, you know what, I want to get into the restaurant business.

[B]

Yes.

[A]

You have a list of restaurants. Let's just use Jimmy John's. But you likely would have more. Maybe you can name them but like

[B]

4,000 brands on the platform.

[A]

4,000 brands.

[B]

It's almost every franchise concept that exists

[A]

in the United States are is on Franzi.com Yep. Right now go check out frames you dot com. I mean I was so excited about this because I just think as I'm a serial entrepreneur, like I got to be careful with our conversation right now because next, you know, I'm going to be on frames. You're like, what's the next industry? I'm going in.

[B]

Sorry.

[A]

Right.

[B]

In a few times people we've met have bought a business with us.

[A]

Yes.

[B]

As us having a conversation like this and three months later they're like, well, now I own this operating company.

[A]

Right. Hey, now I got to go do this thing. I'm reading a great book, Big shout out to the road. Less stupid if you've ever heard or read that one. It just is kind of the fundamentals of business where people just react and make emotional decisions. Like I get all fired up here and I go buy a franchise. Like, is that really the best thing I should be doing right now? So this is exciting because I think, well, let's jump into what I believe is a great industry sector. Home services. I'm a real estate guy. We all know that, right? We're, we're listening to me because that platform. But how many of those, I mean, do you have a number of how many, you know, home services type companies? Roofing, like you just mentioned, gutters, windows, flooring, H vac, Like I just, I think that's a major play for a lot of individuals.

[B]

It has been increasingly popular because there's average unit volumes of revenue of these service businesses, you know, well over a million dollars. But the Startup costs are 150k, 200k, 250k versus a retail restaurant or health and wellness franchise. Could run you half a million. A million, two million in some restaurants cases or more for not too dissimilar of revenues. I mean, restaurants, chick fil a McDonald's will have kind of gold Standard revenues. But these home services brands, again, seven figure revenue for a low six figures investment. And so there's a lot of money in people moving into home services because one, it's cheaper revenue upside is still there. Plus AI is likely not to disrupt, you know, people washing windows or painting, you know, sidewalks or painting houses for, for a while. I mean, it's probably going to happen at some point, but at some point these are safer for a little bit longer.

[A]

What is in. Okay, so do you ever get excited about a business or an industry that you, you get on Franzi?

[B]

All the time. I mean, I'll see things. I'm like, if I had endless money and time, I would buy one of those. Buy one of those. And so I have a podcast too called How I Franchise this where I'm interviewing people that have gone from everyday corporate America or they were at Tesla or they were, they were born into it. Whatever their story was before franchising, then how they got into it, how they specifically found the right brand, how they financed it. So this tactical, you know, storytelling. But I've interviewed a few people that started, you know, seven years ago with zero franchise locations and now have 100 plus across six or seven brands. They've got OrangeTheory, they've got Restore Hyper Wellness, they've got Dave's Hot Chicken Pop Up Bagels. And I see that and I hear their stories and exactly how they did it. Yeah. And it to me it's like if you're willing to work hard, if you're willing to go raise some capital and bring on, you know, private equity or private debt partners, anyone can literally go do this. It's the American dream. If you're willing to go and do it. And franchising just provides this platform that I think is unlike anything else. The playbooks are there, the brand is there, the recipes are there, the training, the marketing's all there. You just need to be willing to go do the work and operate. And I've seen this story over and over and over again and the same consistent theme across all of them is they were willing to do the hard work, they found the right capital partner and then they went all into the franchise model. And six, seven years in like a diamond, you know, they put the pressure in.

[A]

And so what I think is the key is most franchise. And I don't know a lot about franchises, right, but you hear the stories of McDonald's, right? Just the concept of like there's a book, they give you the book, you run the play, rinse and Repeat every day. It works. Right? And that is in large part I'm the real estate guy, right. And so I. Are there real estate people or is there a real estate sector to Francie.

[B]

So a lot of these big multi unit franchisees will also go in and buy the underlying asset that they're developing on. Unless the franchisor McDonald's kind of does a lot of that corporately. They're one of the largest real estate businesses in the world. People don't think about it that way. They're disguised as a burger shop. But some franchise concepts, a lot of them actually aren't thinking about that because they're not at that scale yet. In fact, most franchise brands are considered emerging. 75% of them have less than a hundred locations open. Over a hundred is more mature and that's their 25%. But if you get in with an emerging brand that you like, that has the upside. Dave's Hot Chicken early pop up bagels early. You can go develop the real estate yourself and have this owner operator play where you've got, you know, cash flowing operation on top of an asset that you own. I've heard of some franchisees purposely paying themselves higher than market rent because then they can go borrow against that cash flow on the real estate side to go over in their second and third one. And so there is a whole strategy for those interested in commercial real estate and a real estate play on top of the operating business.

[A]

That is a really smart angle. As a real estate guy. I'm really that way. You just hit like you buy the. Whether it is a current location or maybe even develop one. Right. You buy that corner. That's just this rundown thing. Tear it down. Build your new Dave's Hot Chicken. Right. Whatever the franchise, you pay yourself higher market rent. The income shows strong finances.

[B]

Banks love it.

[A]

Banks love it. They go give you more money to do it again.

[B]

Yep. It's almost like Burr method for residential. Yeah. Looking different.

[A]

I love that. You know, there's a. You're not a real estate guy. You're throwing out real estate terms. This is good. Yeah. No, it is. I mean, this is where I go as a real estate play. We could even be the McDonald's. Right? We don't. I don't have an allegiance to. Name me three. You said Papa Bagels, Dave's Hot Chicken in Orange theory. Besides working out, which I do love, but I wouldn't have an allegiance to any of those brands as a brand. But what I do know and what I do love is the Business model of buying the real estate, understanding the economics of that getting higher than market rent, understanding bankability. And now I have real businesses that have real operations. There's a formula running a real estate play. The bigger play is the McDonald's real estate play.

[B]

Yep. And again, when you get to a hundred units, I mean this is real, real scale.

[A]

Wow.

[B]

That's when you get to five, that's significant for people. I mean there's everywhere in between. There's an opportunity to run both of those plays if you have the capital and the desire to go structure it that way. The issue I think a lot of people run into is they're not capitalized well enough to be thinking about. They have to develop five net new locations. Plus now I got to buy the real estate which could be, you know, six figures, high seven or mid seven figures. And so they're trying to navigate, you know, how do I finance all this?

[A]

Franchises are five times more likely to succeed in the first five years than traditional startups. But finding a franchise ownership opportunity can be overwhelming with over 4,000 thousand brands to choose from and brokers with misaligned incentives. That's why my friend Alex Smirnick, co founder and former CEO of 2U Laundry, built Franzi. Whether you're interested in fitness, home services, automotive or food, franzi make it simple to find your perfect match when you visit Franzi.com and answer a few simple questions about your goals, lifestyle and budget and, and get access to hundreds of personalized opportunities plus free top of the line coaching that will never cost you a dime. Franzi is completely free to use from start to finish. You'll never have to pay them. If you're ready to take the next step towards franchise ownership, visit Franzy.com that is F-R-A-N-Z-Y.com to get started today. So the, the real estate individuals listening to this right now, they, they come up with the same challenge, right? They say, okay, I want a single family burr, right? I want to fix and flip, I want an apartment, I want a fourplex, whatever those things are. The secret of raising capital that I found and I've raised tens and tens and tens of millions of dollars, the secret's always this. Give the opportunity out there, someone's going to like that opportunity, right? What I believe for most real estate investors and business owners, if you are in need of capital and you don't actually let anyone know there's an opportunity, it's very hard, like everyone goes to the bank to let the bank know I'm in need of capital. There's no difference in running a business being a real estate investor needing capital and not going outwardly, like posting on Facebook or Instagram, not, hey, can I get a loan? Everybody, it's, hey, there's an opportunity I have. Would you like to be a capital partner? There's a lot of money out there. I literally had one yesterday. And he. I think he owns a Dave because he talked about this chicken. I swear to God, he was like, I had a buddy who had this operation. He needed some capital. It's a chicken spot. I threw 150 grand at it. And the revenue is incredible. It could be one of those, which is funny. But the point being is that individual I came across because I have apartments, and he's thinking about lending on the apartments, but he also lends in partners on this operation. And so I would tell anyone out there listening to this, like, this is very real. Like, in my world, the upside, I have no genuine want to own a, like a Dave's Chicken or like.

[B]

But the real.

[A]

Right. But if I could just put it together, let the, the booklet run itself. Right. But have the upside of the real estate. There is a very exciting play for

[B]

those individuals, especially if you do more than one location. You start to get these local economies of scale where you can have one general manager, one GM run the business for you, essentially. Like, you still have to be involved as far as, like, site selection.

[A]

Yeah.

[B]

You build out costs and modeling it out. But if you're willing to do that work, find the right capital partner, you operate to some extent, you can hire GMs. And there's a story I tell a lot of a guy that I know met him five, six years ago. I don't want to name his name because he likes to be under the radar. But he, when I met him, owned 43 or so McDonald's. McDonald's, on average, do four to five and a half million in revenue with like an individual, individual location, and then do 600, 800k in cash flow. So you do the math on his 43 locations.

[A]

Makes a couple bucks.

[B]

He's paid almost like an NFL quarterback. And since I last, you know, talked to him about a year ago or recently, and he's up from 43 to like 90 or so McDonald's now. Cause he's just. He's got this cash machine. He's just going. Buying up three over here. Justin. Six, you know, in. In Greensboro.

[A]

Yeah.

[B]

Ten here.

[A]

Yeah.

[B]

And you can just, you know, the momentum doesn't stop And I asked him, I was like, how do you manage all this? He's like, I have one COO that I think he pays 350 grand a year. So not, you know, not insignificant, but also not a crazy amount for that large of a business.

[A]

Yeah.

[B]

And, and that individual runs the whole thing. I haven't been in a McDonald's from, from an operations, you know, operating perspective in a long time. And so like that's on a huge scale. Like imagine now you have three of some new concept. You can take the same lessons. Hire a gm, pay them well. Yeah. They'll run that business. Give them some profit sharing.

[A]

Yeah.

[B]

And you're, you're now, you know, the one operating two, three steps ahead. You're looking for location four, five and six, or a group of five that you can bundle up and, and buy together. Becomes an acquisition game. As long as you have that operating team that's properly incentivized.

[A]

And how, how much. You may not know this answer, but how much would a, what's an average income for the owner operator of a, of a franchise? I'm sure they vary. But like if, if people are thinking like, I'm tired of my nine to five, I don't want to do this thing. I'm looking for something else. Like, what could you consider if you go buy a franchise? And again, I'm sure it varies and I'm not going to hold you to it. And neither should they. Don't hold them to it. What, what are you talking about? Whether it's McDonald's, maybe that's the most known. Or Dave's chicken or orange theory. What, what would you consider?

[B]

So I'll give, I'll give a couple answers because I think the common misconception is like, you think McDonald's, you think Subway. When you think of franchising.

[A]

Yeah.

[B]

And immediately one or two things happen. You think that's too expensive. I could never own that. This franchising isn't for me. But they're wrong because they don't realize there's a franchise that costs 10k to get into. It's going to replace your income, but it can kick off, you know, 20 to 30 grand a year in, in cash flow and not.

[A]

And that's a great return on investment. Just depends on how much you have to work for that investment. But great return.

[B]

So all the way on that end of the spectrum. And Chick Fil A even is only ten grand to get into because they, it's not really like a full franchise. They make you work 4050 hours a week. You're more buying a job and they get 50% of the profits, which is not normal for franchises. So even a, a Chick Fil a you can get into if you're the right operating operator and willing to do the work. And then it goes all the way up to, you know, some of these swim school franchises where you're building seven pools and you're teaching kids how to swim. It's an expensive investment, but the average unit volumes are very high. That's more like 3,4 million to get into.

[A]

Yeah.

[B]

And there's everything in between. I always, you know, people think I'm joking when I say it, but there really is a franchise for everybody. If you want to go do this and depending on what your goals are, I think you have to have, I'd say to do this right, 30k minimum in cash and then go borrow. An SBA loan is meant for businesses like this if you're just getting started, so it really is accessible to your kind of middle class working person can go do this. If they're wanting to be entrepreneurial and to go take some of that ownership back all the way up to the more sophisticated, maybe they've got entrepreneurial experience, they've got a little bit more capital saved up, there's the opportunity to take bigger swings and do the real estate play or do a multi unit deal. And so there truly is a, you know, an answer for everyone and their goals. You know, there's a certain group that, you know, they may be just getting started and they don't have more than five grand saved up. Like I, you know, my advice to them is work and save like you would to pay off debt and then go buy the business when you've got a little bit of a nest egg to go invest in, you know, a services business that you can start.

[A]

It's interesting because I, I'm just such a serial entrepreneur. Like the, the, the other side of this is being make making sure you are in a financial place. I think that was a great point. Like maybe don't push all your chips in if you're gonna go quit your job and like every last dollar you have, you're gonna go start X franchise. Like maybe give yourself some level of a bridge, right?

[B]

Yep.

[A]

And I am just more curious for my own interest, what is the more expensive level of franchise? Like what's a McDonald's franchise? What else would be considered expensive?

[B]

So some of the QSRs or Quick Service restaurant franchises because there's so much build out, there's all this equipment. Massive refrigerators and freezers that are. Sure you're already 50 grand a pop. Yeah those can be two, three in some cases $4 million developments depending on

[A]

where it is and then you at least 10% to get into it I would guess.

[B]

Yeah. And so the franchise fee typically is. It's not crazy 30 grand to 50 grand to get the rights to a territory or location. Um it's really just the build out costs. I mean finding the site, developing it, getting the right gas line in electrical.

[A]

What do you see as the newest hottest franchise that on the market right now? I mean you have 4,000 of them.

[B]

Yep. So there's a few categories. One is golf right now is just taking off. I think it's with you know the Netflix effect of them having the showing and swing. Tiger woods and Rory doing the stadium golf stuff. Right. Live even your creating that kind of more like I don't entertainment approach or version of golf. It's. It's kind of like what Netflix did to F1. There's just a lot more interest now. And so these indoor golf simulator franchises are taking off. They're. It's almost like Anytime Fitness. Do you remember that right? I do Bob in it was a great franchise model. I worked in these really small markets across the United States. Has no employees.

[A]

Never happened.

[B]

They. They're crushing the terrorists of yeah they're

[A]

doing and the low ticket thing is huge you in terms of the clientele. So if you service a clientele that doesn't need to spend a lot of money for you I would assume that's gotta be huge.

[B]

And so this. There's no employees, there's no inventory. It's private golf simulator bays. You know room a fourth of the size of this. This is why I did six because then the investment cost isn't high. That's a. It is a good real estate play because you put them in these smaller you know out parcels et cetera. They're 200 to 400k to fully develop and then they cash flow 100 150k a year. No way with no employ it and it's BYOB so people can bring a six pack and play pebble beach in an hour when the kids.

[A]

This is so I'm gonna bring this back to real estate. So storage facilities versus apartments. People will always make the argument and by the way I own both. I tend to support this argument. No tenants, no headaches versus apartments which is always something tenants et cetera. Right. This is the. The equivalent in the franchise world. Right. And I'm sure there's a couple of them, but like that's exciting. You go put a hundred. What did you say to start it?

[B]

It's like 200 to 400k again, depending on size, how much you put.

[A]

That's the build out, that's also the franchise fee. Like you're somewhere in there and you'll spit out 150 grand gross or net. Stop it. That return is insane.

[B]

Yeah. A lot of these franchises you want to look for should have the ability to generate revenues at least one times the cost to put in. And then you want a payback period of, you know, ideally as little as possible at two to three years. You know, ideally is what you're, you're made whole. Now beyond three can work, five can work. But you start to get into this longer. Yeah, the timeframe, there's a little bit more risk there and things have to be executed better. Um, but if you can get to three years or so, that's usually a

[A]

good something like that. Could you. I mean, what's the locale like, what is the typical location for like a golf. Indoor golf simulator type of.

[B]

So it's kind of like middle class, upper middle class households, dual income families with kids. It's. They're busy families. They can't go golf for six hours. I mean, because realistic, let's be honest. That's right, how long it takes. I was like, I didn't pack. Look, I love to go reliar. We can play, unpack, right? No, you can go play pebble beach in an hour, you know, at 10pm when the kids go down or what. You know, you can do it whenever you want. One of the brands that I, that we work with, they have an example of, they've got these surgeons that play every day at 3am they get off their shift and they go to the location, go play around and then go home.

[A]

Well, where are these locations? Like what kind of facility would it look like? Is it a more like a rural area? Like is it big? Like what is that act?

[B]

Well, like suburban areas, like buy it, you know, near a target in a, in a strip center. Yeah, development could work. Okay, you're in like class B property. I'd say you're not in like the Barry's boot camp or the like primo real estate, which is great.

[A]

Yeah.

[B]

You can be in class B, maybe even class C in some instances. As long as you're backed up to a neighborhood that has, you know, a few thousand households that fit that demographic of busy family, you Know enough income to like golf and enjoy it, but don't have the time to go.

[A]

For all my entrepreneurs or aspiring. Like, you gotta look at this. Right. Even if you're the real estate guy like me, this is something that like I'm genuinely. Now you have 4,000 opportunities. Like this one now is intriguing to me because I actually was thinking this weekend I want to play more golf. By more I mean any at this point because I just have two kids in life. Right. This is a big real estate play. Like that one would probably be hard to own the asset. Right. You'd probably have to do a lease, I'm guessing.

[B]

Yeah. Because if you're in a strip center, unless you take down the whole center and put two or three different concepts. You could put two or three. I mean, I see people, which you can. Absolutely. They'll buy a strip center and they put three, you know, complimentary franchise businesses next to each other. And we have a few hospitality groups that are developing hotels and yeah, different mixed use development. Ask me like, hey, we got six open, you know, spots or bays. What, what concepts, what franchises can we put in? They're going to own and then operate the franchise. Phenomenal. Like I hadn't heard of.

[A]

I almost feel like only a real estate play at this point. Just maybe because like I just. You go buy a strip mall, which is right now like on the cheap. Relative lending is not perfect, but that's why it's on the cheap. You now have the businesses you can put into the strip mall. Everyone's concerned about strip malls because of COVID obviously changed the game for a lot of different things, but like, lending's not great. But if you actually occupy the units with your own businesses, you are your own tenant, you increase your rent to pay down the loan and you rinse and repeat. Like I just feel like now here's the key. Operations systems, like I'm on a big push. Processes, principles, people, procedures.

[B]

Right.

[A]

And then you can profit.

[B]

Yep.

[A]

But if you don't have these processes, principles, people and procedures like dialed, your profit is going to either suck or go the other way and you won't profit. Right. You're going to lose. Are most of these franchises extremely dialed in? So someone like myself that doesn't have a lot of time, or maybe someone that doesn't have the business acumen and is going to learn this. Are they pretty dialed in with these books and game plans and processes? Like, can you literally. People think about it this way? So I want you to kind of tell me, is this Like a plug and play and you just follow the recipe and it'll come out as a beautiful cake.

[B]

This, the honest answer is it does depend on the stage of the brand. This is where Franzi comes in to help. We do give free coaching from folks that are franchisees themselves. So if you came through and you said this is kind of my background, this is my operational experience, my risk tolerance, my capital situation, and here are my goals. We go match of the 4,000 specific brands, partially using AI, so we've indexed 26,000 what are called FTDS, Franchise Disclosure Documents. And then we pair it up against Justin's unique set of criteria, interest, goals, et cetera. Because while there's some similar flavors to what people are looking for, you have very different hobbies, passions. Like that is an important part. You don't want to buy a business that in a year. You're like, I don't really align with that or have time for it or agree with it. And so it is important that it's something that can get excited about five years from now, ten years from now. And you're not gonna be like, I own the, you know, gutter cleaning thing and people are complaining all the time. I'm just not passionate about it. So we help you do that. And to answer your question about, you know, the how plug and play is does depend. Some brands over 50 units especially have full blown teams, training, marketing, playbooks, technology that they've built out for procurement and their CRM, their point of sale is all just dialed in. But these emerging brands are, are not as dialed in. It's more entrepreneurial. So when we get clients that come through, they're like, I want to do this because I want to be entrepreneurial. I want to have a say in what gets built. We actually tell them to not join like a chick fil a or mature brand because you're basically buying cash flow or, and, or a job.

[A]

Yeah.

[B]

At that stage, like they're like, Justin, here's what you do. Don't sneeze this. You know, this is how you sneeze. This is like they'll probably exactly what you need to do and you have to do it.

[A]

And for some that's great.

[B]

Some people love that. Other people are like, I don't want doing this. Their purpose, their why is I want to be an owner. I want to be entrepreneurial. I want to let my creativity run.

[A]

Yeah.

[B]

And we tell those individuals you should take an earlier brand because you're not going to get to let like that's not Going to scratch your itch fully. You might be your own boss, you might have cash flow coming in, but you're not. You're going to be miserable just like you might be now in this 9 to 5. And so go take the additional risk of joining a brand early. And with that comes other upside. You get an influence on the franchisor. You might get to negotiate franchise fees, royalties because they're earlier. You get the ability to white space territory out of fourth unit, a fifth unit at six territory, et cetera, as you go, versus Dave's Hot Chicken McDonald's. They're mostly sold out. So now it becomes an acquisition game

[A]

for that resellers and all that. And you guys are getting into that space at some point here.

[B]

Yeah. So we've started building a prototype of the resale marketplace. The reason we didn't start there is with de novo or new territories. We have structured financials that fdd, that franchise disclosure document I mentioned, is a standard document that the Federal Trade Commission regulates across all franchises. It's easily indexable, scrapable, and so we can give you accurate, clean data as soon as we get into resales. Justin's books look different than Alex's books, even though we both own a Jimmy John's. And your definition of seller discretionary areas is different than mine and Florida's different than North Carolina. And there's all these things that come into play. Yeah. And so AI allows us to get, you know, kind of more apples to apples faster and not needing as much human underwriting and modeling. But that's the interesting problem we're trying to solve with technology is how do we build a resale marketplace that has clean, accurate data and still, you know, mindful of people's sensitivity around their financials. And when do we show Justin's book to a seller? How much do we verify the seller, how much friction do we.

[A]

And all this goes through frenzy.

[B]

Yep.

[A]

So let's talk a little bit more in franzi. Cause I just geeked out on this opportunity. Describe franzi for everyone in the understanding what it is and then where's what the trajectory is?

[B]

Yeah. So I know I use this almost maybe too much, but the way I describe it, just to get it clear quickly as possible, is honestly what Zillow did for real estate buying for franchise. It's a platform that has and houses every brand you can imagine with all this data and information on them. The revenue, the cost to get in, what the royalties you're going to pay are, who the executive team is. Has there been any bankruptcy or litigation so that you can see those red flags. And we're starting to pull in more third party data. What are consumers of this brand, the customer going to go buy the Dave's hot chicken sandwich? What do they think about it in each region in the country? What are commercial rents and leases? So we start pulling in just more and more so that you have the information you need to make a smart, thoughtful, diligence decision. That's all the data piece. There's also this very emotional part of this. Some people aren't doing it purely as an investment. So I, I had one guy come through, he's like, just show me the business that makes the most money like that. Some people, that's what they want. They don't care what it is. There's a franchise called Bio One. It's Bio Bio One. They clean up crime scenes and like dead bodies and like, oh, that could make the most money. And the all right guy that this one's for you. But other people are like, I want to build a business with my kids and it's a legacy thing. We're probably not going to send you to buy or one we're going to send you to a milkshake or a dessert concept. It's still cashflow, but it's something your kids could work at in high school and could be a part of, you know, as you build. And some people come, they've made more money than you know, they need and they're doing this because it's intellectually stimulating. They want to show their kids entrepreneurship. There really is all these different reasons people do it and think of Franzi as the again database and diligence information with that kind of softer coaching where we talk you through what is Justin's why, what can you afford? How do we think about all these different brands? Does it actually solve your goals, your financial picture and then what you're operationally good at?

[A]

Yeah.

[B]

And that's that like nuanced piece that I think a human does need to stay involved in because people buy from people and that's right. And give you all the data in the world. But after a while you're like, now what do I do? I like these three, I think. But I'm not really sure what to do next. Ramsey answers that question too. With human interaction. We'll meet you in person, we'll jump on Zoom calls. As much as you want to use it, it's free for you. We get paid by the brands a flat dollar success fee so that we have no Incentive to promote one brand over another. And we're going to keep it that way from here on out. Because this is such a critical life decision, it would be, I think, morally and ethically wrong to allow brands. I'll pay you triple the amount. And now we're showing Justin brands that might not actually be the best fit. And that's what's happening today in the kind of franchise brokerage world is they're making a 60% commission on the franchise fee. Six, zero. So if one brand's franchise fee is 60 grand and another's is 30, it's. You just have the wrong incentives. It'd be hard for a lot of individuals to say, I'm going to show you the 30k one, even. Even though this one will show you double if. If you buy that.

[A]

Right, right.

[B]

So we're just trying to flip that on its head, make it fully transparent about how this whole world has worked and why, how long brands you've been around for. So we started last summer, took about six months to really get all the data. Last summer. Last summer.

[A]

And you were able to onboard and basically sell all these franchises to be able to use you as a platform to go, that is, come on.

[B]

And how big of a pain point this is for the brands because there's so much of the franchise fee, they're hemorrhaging out to all these different middlemen and commissions, right. You know, fees. So they're desperate for another solution to get high quality, you know, potential franchisees for a much lower cost. And that's our goal with Franzis. How do we can democratize this whole process, empower the brand? If we do that, they're going to reinvest into the franchisee. You as the franchisee have a higher chance of success because you're getting more and more capabilities, resources, support being invested in versus 60% going out to a broker two days later. So that's the one of the end goals here, is how do we enable and support again the next million entrepreneurs?

[A]

So I'm gonna have two questions. One, how did you come up with this concept? Like, just no one wakes up one day, man, I need to solve for this problem about franchising. That doesn't happen. Right. But then two, like, how did I want to get the origin story of like, how did you push into it? Because that's what a lot of entrepreneurs struggle with, right? They found the pain point, they found the solution. They realize they have some gold and they go, now what? Right? And then, and I guess let's even Take one step before that and then we'll get to the other two. You've already done two businesses, you've exited two business. Let's talk about those. What, what vertical were they in? Why did you exit? And then why are we here now with Franzi?

[B]

Yeah. So I'll give you the, the origin story because it's the first one for me. Started my freshman year of college, so I went to Wake Forest. I'm from Minnesota originally, and I grew up with a dad that was 100% sales, 100% commission. Eat what you kill. So entrepreneurial in a big way. I remember in the summer he'd golf all summer long. And then fall, winter, spring, especially in Minnesota, was busting his ass. And I was like, how are you able to do this? All my friends, parents are constantly working 9 to 5. And it seems all this kind of flexibility and freedom to work when you want. And his advice that has always stuck with me is there's three kinds of career. You know, careers you can have. Alex, you can work for someone else, you can work for yourself, or you can have people working for you. He's like, I'm in the second bucket. I work for myself. I can, you know, I. Some months I make zero commission. Other months it's, you know, half of someone, someone's annual salary.

[A]

Right.

[B]

And he's like, but it gives me, it affords me that, that time and that flexibility. And so it's just always stuck with me as I know I need to go do something that sales working for myself or, you know, some sort of like subject matter expert or working or having people, you know, working for me. And so when I got to college, I was looking for entrepreneurial things to do. And I worked for this laundry and dry cleaning pickup and delivery business in college. Yeah, this is fascinating. This could work at Duke and Chapel Hill and Vanderbilt. I want to, I want to, I want to buy this thing. And so they were selling it for 30 grand. My jaw hit the floor. I'm 18. This is the most money in the world.

[A]

Yeah. And I'm thinking, how cheap? Oh, my God, how can we get 20 of those now?

[B]

Well, so, yeah, 18. I thought this is right. Oh, yeah. Two grand maybe saved.

[A]

Yeah, maybe.

[B]

And so I found two other partners. We got to like 11 grand. Still not enough. So then I'm going to the, the business school before I'm in the business school at Wake, asking finance professor professors, I want to buy this business. How do I structure it? So they're teaching me about seller financing. 18 year old is, like, trying to. Sure, I'll help them. So, like, professors, you know, from wake. Thank you. Like, they didn't have to do any of that. They spent breakfast hours before I was even in the business school helping me figure out this deal. So we figured out the deal. We did seller financing and paid them a percent of revenue over the course of a few years.

[A]

You mean the owners or the people

[B]

that we bought it from?

[A]

Okay, yeah, Andy, no, not the professors.

[B]

Not the professor.

[A]

Oh, my God. I was like, good for you, Professor.

[B]

So we bought the business. We immediately went to the university and said, this needs to be a checkbox option for your incoming freshmen, parents, et cetera. We took the business from, like, it's like 26,000 in revenue. It was doing. But high margin, 80% margin or so. And we 10x the revenue our first year up to like 250k because they gave us a booth at orientation week. So all the parents are coming through, like, get your meal plan, get your food, partying. Yeah. Oh, you got to get the laundry service, too.

[A]

Brilliant, bro.

[B]

And so we sold that business when we graduated and sold it for about 10 times what we bought it for. Good for you. I was like, we can retire. Yeah.

[A]

Yeah, right? Old.

[B]

Very many. But then I went and worked for Ernst and Young doing consulting for a year and a half, and I. I really wanted to keep growing to other colleges, but my partners at the time wanted to go do investment banking, marketing for Pepsi. I didn't want to be the laundry guy. Even though that was probably the best time in our life to go do it. I still give a crap.

[A]

So, like, we could be here right now. I'm like, bro, you should have leaned in. You should have.

[B]

I kind of did. I kind of came back. I went to EY for a year and a half. Okay. And I hated it. I was like, this is not as entrepreneurial as I thought. I love the people. I mean, very smart people. I learned a lot, but it just wasn't. It was not fulfilling. Like, going into Wells Fargo and how do we squeak out a tenth of a percent of efficiency and resistant things? Move slower. And I just was hooked from that college laundry thing. I would obsess over it. It was this game almost. Yeah. And I saw all these Uber for X businesses pop up. This was 2014, 2015. So you're seeing Instacart, Shipt, Wag, Rover, Postmates, DoorDash, Uber for anything. And I thought, someone's going to do this for laundry and dry cleaning. It's not Just college kids. Like there's busy families. No one likes doing laundry. It's time consuming. People outsource, you know, lawn maintenance all the time. Why wouldn't they pay us to do their laundry? Let's take what we learned in college and do this on a larger scale. So we started in Charlotte and over the course of eight years we ended up raising 33 million in venture capital scaled to a dozen markets or so, then realized, unlike doordash and you know, ride sharing, which is point A to point B, you go to the airport,

[A]

you need it now.

[B]

Oh, Justin's now we're going A to B to. Yeah. Split it up into dry cleaning and laundry, then bat, you know, a lot of process. And so it's way more logistically complex. Sure. And so we did route based instead of on demand. So we'd go to your, your neighborhood and pick up 30 orders. We started vertically integrating and building physical laundromats to support all the volume. And it was through that process that, you know, eventually we got to the franchise piece was these stores aren't cheap, they're a million dollars with all the equipment. They're very profitable because we have a delivery business coming in as well as a walk in customer base now using the same asset base. And we needed to scale more recommendations. And so we thought, well, why don't we franchise the brick and mortar layer the technology platform on the delivery piece on top. And that's how we got into franchising. In 2021, started franchising a subsidiary called Laundry Lab and we sold 118 locations in 14, 16 months.

[A]

Franzi did.

[B]

Maybe it wasn't was it Franzi, but it was as the franchisor. Like we were the Dave's hot chicken. We were the company selling franchise licenses. And part of that was we worked with franchise brokers and we worked with what's called an fso, a franchise sales organization. And that's where this idea for Frenzy was born. We were the brand paying out 60% commission. That's 80% Russians. They're like, we need this money to invest in site selection support and construction support and marketing. We're just like hemorrhaging out cash. And we'd also raised venture. So we had this unique advantage that most brands never have. You and I franchise this podcast studio or we franchise, you know, a run club or whatever the concept is. We don't have venture capital behind us typically. And so even more so, these brands need that franchise fee to invest in themselves and their capabilities and support of their franchisees. And that's when the light bulb went off. I was like, if we're having a hard time, you know, scaling the team appropriately with the amount of stores we have to open, how does anyone else ever do this? And the answer is they end up giving up way more equity to like friends and family or like maybe more not predatory, you know, VC or private equity, but groups that could really get good valuations or they take 30 years and they go very, very slow or they just, they don't scale. They don't, they, yeah, they, you and I stock capita at three or four corporate stores and they're like honestly I want to go down this path. Right. So I think there's a lot of really good brands that should be national and don't because they, you know, there's not the right resources and tools out there. And I think there's some brands conversely that get propped up by the broker networks that have no business being as big as you as they were because the underlying financials aren't sound or proven out. But you know, the networks are just pushing these concepts down everyone's throat essentially. And so long answer short. Franzi was born from this idea of how do we put the control and the cash back into the brand's pocket so that they can reinvest in the franchisee ultimately creating this more kind of positive self fulfilling loop versus today which I think is kind of the wild west unregulated.

[A]

So you had what was that original dry cleaning laundry brand.

[B]

So it's called 2U laundry was the delivery piece and then laundry lab is

[A]

the physical brick and you owned them and then you franchised them.

[B]

Yep.

[A]

Right. So you went through the whole process of franchising then you were the company paying all these brokers 40, 60 commissions. 80 commissions at times.

[B]

Yep.

[A]

Found the pain of like this sucks.

[B]

Yep.

[A]

We're not capitalizing the way to grow that we need because we pay it all out.

[B]

Yep.

[A]

And then he said I could help other brands.

[B]

Technology can do a lot of what the brokers are doing. It's top of funnel lead gen. It's light matchmaking and it's light qualifying. You buy, you buy a house this way, you know, through bankrate and crash companies. You buy a car, you carvana. We're not saying society's ready to go buy a half a million dollar business just online. Sure.

[A]

Right.

[B]

But if you think about franchising, it's not as pure of a brokerage play as you buying a car wash or a house. There's a buyer and A seller, you kind of need someone in the middle to help negotiate and play nice and then you transact and you're probably done interacting with each other.

[A]

Yeah.

[B]

In franchising, if you think about it, you're like, hey, maybe a golf thing, maybe a restaurant. You need some advising and coaching. And then the relationship you're building with that brand is going to be a five to ten year relationship. So it's not this transactional. I found the one. Fine. I'm done.

[A]

Right.

[B]

It's, it's dating, it's matchmaking more than anything. And so traditional business brokering doesn't make as much sense because the relationship and the situation is very different. We're more of a matchmaker. Yeah. Franzi should be a matchmaker, not a broker.

[A]

Yeah. Like a true. So like you're not a dating site that's very transactional where you're swiping left and hit it and quit it. You're more like one of those matchmakers. Come sit down 100 people in a room. Get to know each other, spend some time with like that's the difference.

[B]

Yeah. Because you're one credit transactional lighting. That's for a five to ten year commitment with that brand. So you better like the team you're working with. You better like the brand, you better like what you know their mission and their core values are because it's going to be a part of your life. Whether you're the hands on operator or just the investor type, it's still a big part of your life and you need to believe in the team behind it and who you're going to be working with.

[A]

So you have a team that can hold someone's hand and help them understand all this. I mean that's the brilliance. So that's what led to Franzi.

[B]

Yep.

[A]

Right. So you actually exited your first franchise.

[B]

So I'm still on the board of that business. I sold some of my equity. Yeah. Rolled the rest and had a, you know, a decent liquidity.

[A]

Now you have a startup and now he's going in.

[B]

Yeah. Yeah. Now I'm Back to square one again. I love that stage. Zero to one, zero to 10 million.

[A]

Yeah.

[B]

And I love the scalability of this. But also the mission behind it is entrepreneurship has drastically changed my life. It's the most fulfilling thing I've ever done. I work most weekends because I want to. I have a four and a half month old at home so I'm trying to balance, you know, family time. But I, you know, this is my hobby. Like people, what do you do outside of work work? Because I, this is, it's fun to me. I genuinely love doing it and I think a lot of people go throughout life not having found that kind of purpose or that thing that, you know, lights them up, fills them up every morning. And so if we help even 100 people, 10 people find that through Franzi, like that's the, that's the goal is like show someone who's been. This has been tugging at them their whole life, it's been eating at them. They've been successful in their own right, but it's been for someone else, it hasn't been for them. How do we champion that person, de risk it for them? Find the right fit, find the right financing program and structure and like really give them the tools they need to go take that risk that they're more than capable of doing operationally and you know, intelligence wise.

[A]

So your avatar to come see Franzi.com youm would like them to have some level of financial means. They don't need to be affluent.

[B]

50k in cash is ideal because then you can bar. You can basically get into Most franchise concepts. 250k.

[A]

50k in cash.

[B]

Yep. 150k net worth.

[A]

150k net worth. Some level like above 700. Creditors credit.

[B]

Not credit. Yeah, I think above, above 700 is good. Above 650 can still, can still work.

[A]

But, and you are, do you have a way for. Can people from this episode or wherever they're seeing this, can they get a hold of you in the sense of like book a call or find out more? What's the path to do that?

[B]

Yeah, if you, if you email me at alexfrynzie.com, it's my direct email, we can set up time either with me or other franchisees, you know, other franchise experts on our team. Otherwise we're all over social media. So Alex, from Franzi on Twitter, X, Instagram, TikTok, LinkedIn, there's all sorts of ways for us to engage. We have a newsletter, a podcast. We're pushing a ton of educational information out there because again, I think most people are capable of doing this that they want to. The issue is most people just don't know where to start. That's it. They don't have someone to help them, they don't have resources. And so our goal again is, let's give you that so you can take that push to jump and start building

[A]

people knowing what you. So I have the science flipping podcast of the entrepreneur DNA podcast. I have these podcasts That I know there's a lot of people hungry to be entrepreneurs. Right. Some like the real estate play. Like to me this is a real estate play, this is a business play, this is a lifestyle play. Right. Like you're gonna solve for a lot of it. I obviously lean into this real estate play because then you have multiple exits. Not only you have your income on the way in and through, you have an exit on the franchise if you want and you can resell it through franza.com if you want, you have an exit on the actual property. Or maybe that's the legacy play that you gift to your kids and you exit the business ownership and you just allow someone else to lease that property. I mean I just genuinely I'm should not be doing this podcast because now I'm good. Now I'm going to be eyeball keeping my knuckle unlocked. That's right.

[B]

The other thing to make it even more exciting, someone like you especially is going to love this. I, that's one of the reasons I like franchising now is if you get into the right system, the right brand and you do scale 3, 4, 5 locations I mentioned these bigger fish are constantly looking to buy up. Oh yeah, those, those, those three to five pack people. There's exits along the multiples are higher in franchising because it's almost like a AAA rated bond. It's like you got, it's not just Justin and Alex's coffee shop, it's Starbucks or it's Ziggy's coffee or it's this thing that has a brand behind it, a franchisor behind it, the stop gap. So the risk is less so we can actually sell for instead of a 2 to 3x multiple, 4 to 6, sometimes 7, 8, 9, 10x multiples on EBITDA. So you're talking 2 to 3x on your exit than you would have had if it was independent. And so just like the exit opportunities are bigger. So all these, there's all these.

[A]

It goes back to the principles, tailwinds, processes, principles, practices. These are the P's I talk about. Like that's a business principle. Go into a business that you can have an exit with. Like no one wants to work forever. So what is your exit? Go into it thinking what your exit is.

[B]

Yep, this is phenomenal.

[A]

So Franzi.com is where they want to go. I'm going to, and by the way, if you follow me, I'm going to be tagging him all over everywhere. Right. So you're going to be seeing that Everywhere. What would be one of the bigger misconceptions regarding franchises either? Outright lies. Like people just don't know that that is an outright incorrect fact. Like it's not a fact or a misconception of a franchise.

[B]

Yeah, I think the number one is that, you know, franchising is just these big brands. McDonald's, Subway, there is truly a franchise for just about any concept you can imagine. Yeah, gutter cleaning, window cleaning, health and wellness. Most people don't realize hotels, most of them are franchises. Hilton, Marriott, a lot of them are owned by individual groups or individuals. Yeah, it's not just food. So there are franchises.

[A]

Truly could be franchises.

[B]

Podcast there. I think there is a franchise podcast studio that's starting to expand. And look at this. Like, there, there is the crime scene cleanup. Again, there is franchising for everything. And within that there's also franchising, I think, for just about everyone. Again, it's not for those that are just starting to get started in their career, just starting to squirrel money away. Like, you do take a risk, but very, very calculated. But for most people that have 30k even saved up, you can get into a franchise business. I think that's the other misconception is you think, oh, the rich are just going to get richer. It's going to be wealthy people buying another McDonald's. Like, there definitely is some of that. But there's also the guy who I talked about on our podcast, he had 0 seven years ago and he's up to 120. And he just went one at a time. And then those started cash flowing and he built onto those. Then he got connected with, you know, family offices and some private lenders and brought partners on and went to 30, went to 50. And it's the American dream. You can do it and go after it if you're willing to take that risk. Surround yourself with the right people and be thoughtful about the brands you get into. So, yeah, that'd be my answer is franchising is way bigger, more encompassing than

[A]

way broader and people less restrictive than people realize is not just Starbucks or McDonald's. It's not these big brands.

[B]

There's also.

[A]

And maybe you want a franchise, maybe you reach out and say, hey, I have an idea that I want to franchise.

[B]

Yes.

[A]

How did you, like 4,000 franchise? Like, is that just call by call? Was it once the word got out, they started coming to you. How did you build that out?

[B]

That is really impressive. So very similar. We took the Playbook from Zillow. Zillow immediately had all the inventory because they pulled it from the mls. I don't even know what MLS stands for, but it was essentially Multiple Listing Services. Okay. Multiple Listing Services. I don't even know how MLS allowed them to do this or if they did allow them to do it. But Zillow Day 1 had every house, all this price data. And so they wrote a New York or a Wall Street Journal article about new site Zillow. You can. They'll tell you what your house is worth. And so all of us are curious, right? Like, it's probably the biggest investment a lot of people are making. And so, of course, they want to see, well, what is this thing worth? And so all this traffic was coming in, claiming their houses. We took a similar tact where we have all the data, just like the MLS in these ftds. So we scraped and took us six months to build this whole data set and platform out. So get all this information. We now have all the brands on the platform and similar tactic. We went to the brands that, hey, we have your brands on here. All this traffic is coming to look at it. They're wanting to buy it, but we're only sending the leads to people that have become verified. So, you know, we have all these people looking at you.

[A]

So you're verifying them, not the franchise.

[B]

We're. Yeah, we, as the platform are verifying Dunkin Donuts. Like, make sure it's someone that actually works at the company. They get on board, they sign a legal agreement, agreement with us to basically take ownership of that page. Just like you and I can claim our house on Zillow.

[A]

Yeah. Or are you verifying the potential franchisee?

[B]

Both. But to get all the brands verified on the platform, we propped it up on the, you know, went live with all those brands. All this traffic started coming in, looking at sites, and then we go back to the brand and say, hey, we have all these people that have favorited your page. We want to connect with you.

[A]

Yeah.

[B]

We want to pass them on, but we can't connect you with them until you've claimed and verified your profile. And so they then all started signing the agreements and taking on 4,000 of them. Yep.

[A]

Like, is it 4,000 different franchises, or are you just talking about locations?

[B]

Different brands. Wow. Yeah. So within those brands, some of them have thousands of locations. You know, Duncan, Taco, Hill, et cetera. Then there's the newer brands that might just have five. And so again, I keep saying it, and I don't mean to be cliche, but there really is something forever. If you want more mature, we've got. If you want emerging and, you know, more entrepreneurial, we've got it. If you want 4 million dollar investment, we've got. If you want 20k investment, we've got it.

[A]

Wow.

[B]

Service versus retail versus 15 employees versus 2 employees. I mean, you can really filter on every bit of criteria you want.

[A]

This is incredible. Franzi.com. who would have thought? I should not have found this episode. This is gonna dry. I'm gonna go into a wormhole because of you and call you all night, bro. What about this one? Should we do this one? Who should I be talking to? This is going to be great. Guys, this is Alex. I am Justin. This has been the entrepreneur DNA. Make sure you look up franzi.com. make sure you look up Alex. Is Alex Franzi or is Alex from Franzi? Alex from Franzi. All over all platforms, this has been incredible, dude. This is a real estate play. It's an entrepreneur play. It's a young person, old person, a legacy play. I mean, this is. I'm genuinely excited about this because I just think this way, right? This is why people become entrepreneurs. Appreciate you being here.

[B]

Yeah, thanks for having me again.

[A]

All right, guys, this is Justin. That is Alex. This is the science of flipping. And if you enjoyed that, please share it with two of your friends.

[B]

If you like the show, please take a moment to rate, review and subscribe. It really does help the show to grow. Thank you for listening.