Are you looking to invest your money but don’t want the hassle of doing it yourself? Or are you a business owner looking for a low-cost, low-risk way to expand your brand? Franchising might be the answer for you! Franchising is a great way to build passive investment. With a franchise, you get all the benefits of owning your own business without all the risk and hassle.
In this episode, J and Ashley talk with Nick Friedman, cofounder of College H.U.N.K.S. Hauling Junk and Moving, about how investing in franchises helps you build passive wealth. Join them as they explore the passive income opportunities in franchising and what to expect.
Here are some power takeaways from today’s conversation:
Episode Highlights:
[6:43] Franchising the Business
Being a franchisor isn’t very passive. Not only are they selling the franchise but they are also providing support, tools, marketing, logistics, and technology.
[10:43] Building Passive Income Through Franchising
They saw the opportunity to create an investor model or absentee owner where the owner may have the capital but not the time or bandwidth to run the daily operations. So the franchisor finds a manager to handle the daily operations who may not have had the capital to do so.
Do your research. Look at the International Franchise Association’s website. By filtering your options, you can find a passive franchise investment.
[16:42] What to Expect in Franchising
When investing in a franchise, there will be some involvement. But it’s still passive since you’re not spending every day working on that project.
[22:12] Nick’s Interests, Concerns, and Advice
He’s a passive investor in Franchise123, and so he’s currently invested in that particular model. With interest rates rising, he’s keeping a close eye on the housing market.
Have patience for results but urgency of effort. Invest in what you know. You can also expand what you know. Always give a little bit more than people expect.
Notable Quotes from the Episode:
[4:15] “In order to grow a business, you’ve got to learn how to work on the business, not just in the business. You’ve got to create systems and processes for the business to scale.”
[13:41] “It’s a wide universe out there. And it’s worth doing some research to explore what might be a good fit or good investment opportunity.”
[26:47] “Have patience for results but urgency of effort.”
Resources Mentioned:
The E Myth Revisited by Michael Gerber
Traction by Gino Wickman
International Franchise Association
College H.U.N.K.S. Hauling Junk and Moving
Nick Friedman’s website