Ep.185: Alex (@aebridgeman) is joined by Michael Horowitz (@downtosmallbiz).

My guest today is Michael Horowitz who recently sold a roll-up of 20 Wingstop franchise locations (15 acquired, 7 built, 1 closed) and co-authored a paper with A.J. Wasserstein about the franchise path for entrepreneurs. In this conversation, we discuss his strategy and components of an effective franchise roll-up. We touch on the pros/cons of the franchise path, the role of debt, choosing a brand, challenges, and opportunities with multiple locations, and much more. If you’re considering franchises, this episode can serve as a great primer and base of knowledge for exploring the model. Please enjoy this episode with Michael Horowitz.

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Learn more about Alex and Think Like an Owner at https://tlaopodcast.com/

Links:
Michael on Twitter
Ten Essential Questions to Consider When Selecting a Franchise Brand for a Search Fund Journey
Timecodes:
(00:00:00) Intro
(00:03:18) Michael’s franchising career
(00:10:00) Choosing a smaller brand like Wingstop
(00:14:14) Transferring rights between franchisors
(00:15:27) Michael’s growth trajectory
(00:16:58) How restaurant groups continue to scale
(00:19:12) Michael’s decision to sell
(00:22:26) Choosing food franchises over other opportunities
(00:26:14) How franchises can uniquely use debt
(00:31:12) The culture shock of moving from finance to managing fast-food employees
(00:35:34) Learnings from the restaurant industry
(00:37:35) Career paths within franchising
(00:39:47) Hiring and recruiting challenges
(00:47:28) Multi-franchise investor strategy
(00:52:10) Advice for folks considering franchising
(00:54:16) What strongly held belief have you changed your mind on?
(00:56:07) What’s the best business you’ve ever seen?