The Side Hustle Show – Episode 718

Does it Make Sense to Buy a Franchise as a Side Hustle?

Host: Nick Loper
Guest: Greg Moore, Franchise Consultant & Author of Real: Why Franchises Are Worth Considering and How They Can Be Used for Building Wealth
Date: January 15, 2026

Episode Overview

In this episode, Nick Loper digs deep into an underexplored yet promising side hustle path: franchising. Franchise expert Greg Moore joins the show to demystify how buying a franchise can work as a part-time, income-replacing side hustle—even if you don’t want to quit your 9-to-5. The conversation covers feasibility, practical steps, industry opportunities (well beyond fast food), financing, expected returns, and common pitfalls—plus hard-won insider wisdom on what it really takes to succeed in franchising.

Key Discussion Points and Insights

1. Is Franchising Feasible as a Side Hustle? (00:00–03:16)

• Semi-Passive vs. Fully Passive Ownership:

  • Not all franchises are created equal; some are truly semi-passive, others require more involvement.
  • Greg encourages deep homework: “Talk to at least 10 current franchisees who are operating that business and find out what that semi passive management really encompasses as far as the number of hours that you’re going to have to put into it.” (01:03, Greg Moore)

• Examples of Part-Time Franchisees:

  • Many clients keep their day jobs and use franchising to build a nest egg or eventual escape plan.
  • Brick-and-mortar and service industries can both be semi-passive; success models vary.
  • Real estate investors often like service franchises for similarities in semi-passivity.

2. Franchise Varieties Extend Far Beyond Fast Food (03:16–04:08)

• Franchises exist in every imaginable industry—not just food.
• Initial assumptions (McDonald’s, Subway, high costs) don’t reflect the real breadth and diversity available.

3. Building a Management/Operator Team (04:08–05:04)

• Owners with large numbers of franchises (like Shaq or a Houston-based orchestra director) manage via regional managers and not hands-on labor: “For every seven salons, he’d hire a regional manager… That’s how you do that.” (04:08, Greg Moore)

4. How to Start Researching Franchise Opportunities (05:04–06:43)

• Finding the Right Fit:

  • There’s no MLS-style “franchise database.” With 4,000+ U.S. franchises, guidance from a consultant helps narrow choices.
  • Franchise consultants (like Greg) are typically free for clients, paid by franchisors if you move forward.

• Matchmaking Process:

  • Consultants assess your current work, interests, goals, and budget to find the right opportunities.

5. Hot Franchise Industries in 2026 (07:08–09:18)

• Services in Constant Demand:

  • HVAC, plumbing, electrical, senior care (largely private pay, strong margins), tutoring, and health/wellness are strong bets.
  • Fragmented industries present opportunity for franchise brands to dominate local markets.

• Call Centers & Management:

  • Look for franchises with infrastructure like call centers to offload customer service, especially if aiming for “semi-passive.”

• Large Franchise Groups:

  • Groups like Authority Brands, Neighborly, Belfor offer proven systems and collective power for franchisees.

6. Role of the Franchisee: Manager, Not Laborer (10:45–12:37)

• You Don’t Need Technical Skills:
  • Franchisors expect you to build and manage the business, not do the labor.
  • Onboardings often demonstrate the work for understanding, not daily execution.

“The franchisor doesn’t want you working necessarily in the business itself. They want you working more on the business and growing the business.” (11:17, Greg Moore)

7. Startup Costs, Financing & Structure (20:39–24:11)

• Common Startup Costs:

  • Franchise fees typically ~$50,000, plus working capital and equipment as needed.

• Financing Options:

  • SBA 7(a) loans popular, often ~10-20% down payment.
  • 401k rollovers can be used (with proper structure) without penalties.

• Entity Structure:

  • C Corps sometimes used for 401k rollovers, but may convert to LLC/S-corp for better tax efficiency.

8. Returns & Sample Numbers (25:01–29:49)

• Cost-Savings or Tutor Franchise:

  • Low overhead, labor is primary cost; can be run from home.

• Senior Care Franchise Example:

  • 50 seniors = $1 million top line, $200,000 bottom line, even after paying manager(s).

“Once you get up to about 50 seniors, you’re going to be bringing in a million dollars, top end, and you’re going to be dropping about $200,000 to the bottom line after everything’s all said and done." (27:35, Greg Moore)

9. Why Pay the Franchise Fee? (15:18–18:33)

• Avoiding DIY Mistakes:

  • You pay for the playbook and to avoid rookie mistakes.
  • Franchisee royalties usually 5–10%.

• Due Diligence Is Key:

  • Speak to current and former franchisees—especially those on their 2nd/3rd units.

10. Due Diligence and Realistic Projections (35:23–36:26)

• Pro Forma, Not Hope:
  • The franchise disclosure document’s item 7 (total investment) and conversations with active franchisees provide real numbers for projections.

“We want that calculated out by going through due diligence… When am I breaking even? The franchisor is going to go over a lot of that with you… So now you’re not wondering, you’re not guessing.” (35:23, Greg Moore)

11. What Separates the Franchise Winners? (36:59–38:26)

• Success Factors:
  • “They are hiring the right people.”
  • Owners focus on management, recruiting, and building effective teams/leadership.

"You just send me the business; I'll get it done. I don't want to deal with that part of it." (37:52, Greg Moore, on finding great operators)

• Entrepreneurial Mindset Matters:
  • Only about 1 in 100 individuals is truly entrepreneurial—rest may prefer management roles.

12. Pitfalls and Common Mistakes (39:21–41:55)

• Don’t chase trendy, short-lived ideas (e.g., yogurt shops).
• Prefer established franchises (100+ locations) if risk averse.
• High transparency via franchise disclosure documents; use item 20 (historical success rates).

13. Franchising for Cash Flow AND Long-Term Wealth (41:55–44:13)

• Build, Run, and Sell:
  • Businesses may be sold for 3× net income plus equipment—often bought by neighboring franchisees.
  • Some owners keep for annuity-like income; others flip or hand down to family.

14. Greg's Parting Wisdom (46:33–46:47)

"There’s probably a franchise out there for everybody, but everybody is not for franchising. I'll introduce four people to a franchise. Three of them will say no. We'll agree on it together. So I'm not here to pressure you into it. Just a good option to look into." (46:33, Greg Moore)

Notable Quotes

• “Don’t just look at the marketing material provided by the company, go talk to the real people doing it.” (01:52, Nick Loper)
• “Any industry that you can think of, there’s probably a franchise in there…” (03:28, Greg Moore)
• “As long as the investment services the debt… you’re good to go.” (21:03, Greg Moore, on financing)
• “What you want from that franchise is that they’ve already gone through that process. …They’ve proven before they became a franchise that they can build it and they can replicate it.” (15:42, Greg Moore)
• “I still see this franchise game as entrepreneurship, but maybe entrepreneurship with, with training wheels, with some guidance here.” (38:26, Nick Loper)

Key Timestamps for Important Segments

• Feasibility of Semi-Passive Franchise Ownership: 01:03–02:07
• Types of Franchise Models (Service vs Brick-and-Mortar): 03:16–04:08
• How to Start Researching Franchises: 05:04–06:43
• Service vs Name-Brand Franchises: 07:08–09:18
• Cost & Financing Mechanics: 20:39–24:11
• Example: Senior Care Franchise Economics: 27:35–29:49
• Franchise Fee vs. Building Your Own: 15:18–18:33
• Critical Mistakes (Trends, Failure Rates): 39:21–41:55
• Asset Value and Exit Strategies: 41:55–44:13

Additional Resources Mentioned

• Free List (Curated by Nick): 50 low-cost franchise opportunities: sidehustlenation.com/franchise (referenced at 12:42 & 46:47)
• Greg’s website: franchisemaven.com
• Book: Real: Why Franchises Are Worth Considering and How They Can Be Used for Building Wealth

Takeaways

• Franchise ownership can indeed be a structured, lower-risk route to building a business alongside a day job—if you do your homework, choose the right system, and focus on management.
• You aren’t buying yourself a job, but a business system with clear next steps, support, and proven processes—ideal for those who like entrepreneurship with a safety net.
• Due diligence, realistic projections, and great hiring are non-negotiable.
• Not everyone is cut out for franchising, but for those who are, it’s a proven path to cash flow and long-term equity.

Listener Bonus:
Download Nick’s curated list of 50 franchises (including startup costs and income estimates) at sidehustlenation.com/franchise.