Thoughts on ETA via a franchise?

June 07, 2022

by a searcher from Old Dominion University in Norfolk, VA, USA

As a former Navy Helicopter pilot turned corporate attorney I’m new to this space and excited to explore the teams thoughts on acquiring a seatow franchise as an entry into running a business, thanks!

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Reply by a searcher
from Rice University in Houston, TX, USA

I think this is very dependent on what you are looking for. The right franchise might allow you to keep your day job, scale up through multiple locations, and/or have an experienced partner. Many provide a "formula" to follow. While that is appealing to some (former engineer here), it can really put off others. I think James and Link have really good points, though, as it may take more time to scale and you may not have ultimate authority to tinker as you might with a true acquisition. I would also caution that like anything else, there are a lot of bad franchises out there and you may have to sort through the mud to find something good. There are franchise consultants that can help with this but their incentives may differ from yours. Good luck!

Reply by a searcher
from Harvard University in Miami, FL, USA

To me, it all comes down to unit economics and runway to grow. If you have an opportunity to join a franchise with compelling unit economics (unlevered paybacks of <3 years) and room to grow in a market you can lock up, there's no reason not to consider it. Having said that, many franchises have weak unit economics, so you need to be careful. At a minimum, you will be signing yourself up to run the business for 5 years, although the term is typically 10 years.

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