Deciding Between Growth, Cash Flow, or Exit

Thinking about buying a franchise? Erik Van Horn and Bobby Brennan break down the real journey: from the "fee stage" burn to stabilization, optimization, and finally scale or exit. We cover why "passive" is a myth, how to avoid starving your marketing, when (and when not) to use profit sharing, and what separates podium revenue from real EBITDA.

Timestamps:

00:00 Don't buy a franchise for short-term income

00:42 Intro: Franchise Secrets w/ Eric & Bobby

01:12 The "passive" myth & real losses

02:51 Transparency from operators & brokers

12:40 Phase 1: Investment/Burn (intentional negative cash flow)

22:54 Phase 2: Stabilization (6–18 months)

33:02 Phase 3: Optimization (18–36 months)

44:08 Phase 4: Scale or Exit (Years 3–7)

49:06 Owner vs employee mindset (long-term wealth)

51:54 Wrap-up + resources & links

Connect with Erik Van Horn:

🌐 Website - https://franchisesecrets.com/

📷 Instagram - https://www.instagram.com/erikvanhorn/

👍 Facebook - https://www.facebook.com/erik.v.horn/

💼 LinkedIn - https://www.linkedin.com/in/evanhorn/

Best Franchise Starter Playlist:

https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm

https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf

https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL

#Franchise #Franchisee #FranchiseSecrets