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CATEGORIES: Business, Franchising
So, you want to dip your toes in franchising. Great! But before you look at your financing options for buying into a franchise, you must understand how to determine the market value of the business. When it is time to have that conversation, both buyer and seller must agree on the business valuation and other fees.
In this episode, Erik and Jeff Herr engage in a fun conversation around franchise fees, why brands charge what they charge, the biggest rookie mistake Jeff has ever made, and industry insider conversations no one else is telling you.
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Erik and Jeff used to compete against each other while working in the tax business. They became friends and business partners at Front Street Equity Partners, where Jeff currently functions as the Managing Director. Jeff has been a guest in Franchise Secrets a few times before, offering insights and advice to help you make better decisions.
“There is a value to everything, right? It's what somebody is going to pay.” - Jeff Herr
In This Episode:
- Conversation with a nervous founder of a new brand
- What is the value of an emerging brand?
- Components of a good founder's story
- Why unit economics matter in business valuation
- Why some founders are not declaring Item 19
- How many new brands are coming to market in a year?
- The reason it's getting more challenging to franchise a business
- How to thrive in a competitive market
- Who are you taking advice from?
- What Jeff thinks about a brand that competes on lower franchise fees
- What is the franchise fee for?
- What franchisees are looking for in a brand
- Watch out for this next topic of conversation
Resources:
🌐 Consult with Erik - https://form.jotform.com/222685728939070
🌐 Want to buy a franchise? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617
🌐 Want to franchise your business? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617
🌐 Franchisees and franchisors find proven tactics and strategies to scale YOUR businesses - https://scalablefranchise.com/
🌐 Front Street Equity Partners - https://www.frontstreetep.com/
🌐 How I Built This Podcast - https://www.npr.org/series/490248027/how-i-built-this
Connect with Jeff Herr:
🌐 Website
Connect with Erik Van Horn:
🌐 Website
🎥 YouTube
Ⓜ️ Medium
Erik Van Horn is a franchising specialist, and expert in multi-unit, semi-absentee franchise business ownership. From entrepreneur to regional developer, and investor to consultant, Erik has worn many hats over the last two decades, which has provided him unique insight into complex aspects of the industry. If you're a franchisee, a franchisor, or one aspiring to be, subscribe to the Franchise Secrets channel and visit www.FranchiseSecrets.com for even more tactical and practical tools to help you buy, grow, and sell franchises like an expert.
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