In this episode, we'll learn who runs these franchises and how they operate. We will see the most significant pain point regarding the customer base in this kind of business.

In addition, our hosts will offer some advice on how to run this type of business efficiently after discussing the revenue splitting among the stores and the possible tradeoffs & advice on how to get started and pick the best franchise.

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Thanks to our sponsor!

Live Oak Bank - Whether you’re looking to build, buy or expand your business, let the team at Live Oak Bank be your financial guide. With Live Oak, you get a partner who believes in your success and is willing to take the journey alongside you. We provide small business loans tailored to your goals.

Fuel the growth of small businesses across the country; bank with Live Oak Bank.

You can contact Heather Endresen, Director & Founder at heather.endresen@liveoak.bank. Mention this podcast in the subject line and ask her about office hours to get in touch.

*Live Oak Bank is the #1 SBA 7(A) Lender. The data supplied by the SBA reflects 7(a) highest dollar volume during FY 2021.

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Show Notes:

(00:00) - Introduction

(00:38) - Our Sponsor is Live Oak Bank

(02:14) - Quick catch-up with Michael and Bill

(04:39) - Deal & financials: 6 Cricket Franchise Cell Phone Stores

(05:54) - Who runs these franchises? How are these operations usually run?

(07:27) - How is the revenue split among the stores?

(14:46) - How is this service distinct from prepaid services?

(16:28) - What seems to be the main pain point regarding the customer base?

(20:24) - What's happening with the Amazon third-party delivery staff?

(23:13) - Is there a bull case for this deal? What is the trade-off?

(24:13) - Would it be better if we closed other stores?

(24:44) - How much of a moat does this business have? How easy is it to open a Cricket Franchise?

(30:21) - How to pick the right franchise? Who are franchises meant for?

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Additional episodes you might enjoy:

#135 - Should we buy this warehouse software business?

#134 - Should we buy this skiing technology company?

#133 - How to value and underwrite commercial Real Estate? With special Guest Chris Powers

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