Why Real Estate Investors are Buying Franchises with Jon Ostenson
Jon Ostenson is a consultant, investor, author, and international speaker specializing in the area of non-food franchising. Having served as the President of an Inc. 500 franchise system and now as a multi-brand franchisee, himself, Jon is uniquely positioned to educate others on franchising and franchise selection. Jon shares that more and more real estate investors are turning to franchises as a viable passive investment alternative. These franchises extend well beyond restaurants and typical retailers, providing a wide array of opportunities. In fact, some of these franchises even serve as excellent compliments for multifamily apartments.
Let’s dive in to learn more about franchising and how it can be complementary to your real estate investments.
Announcement: Download Our Sample Deal and Join Our Mailing List
[00:01 – 05:03] Opening Segment
Jon talks about his background.
Why Jon decided to leave corporate.
An introduction to the franchise space.
[05:03 – 10:28] Franchising 101
Why there is a booming in franchising
Why franchising and small business ownership present new investing opportunities.
The franchise advantage VS Starting a new company
Some of the benefits of franchising
Jon explains why so many real estate investors are turning into franchisers.
[10:28 – 26:04] Different Opportunities
Jon talks about Amazon resistant businesses where you see a lot of traction.
What to use to evaluate a business.
The benefits of identifying opportunities that may not even be on your radar.
Some of the drawbacks that people should know about before seriously considering investing in a franchise.
Jon explains what EBITDA is.
How to figure out where the valuation is based on the EBITDA.
[26:04 – 31:02] Round of Insights
Having a business and realising that the model wasn’t there from a profitability standpoint.
Most Recommended Book:
#1 Insight for Investing:
Don’t fall in love with a first investment without looking into a lot of different options as well.
Best Place to Grab a Bite in Atlanta:
Taqueria Del Sol
To learn more go to Jon’s website.
“There are other avenues that deploy capital and franchising does present that opportunity” - Jon Ostenson
“Most of my clients have real estate investments as well so it’s not an “either or” and I think franchising can be a complementary or it can serve to diversify as well” - Jon Ostenson
Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you do not miss an episode.