Buying 6 Fazoli’s Franchises in Rural Texas: Would You Do It?
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Mar 28, 2025
The discussion centers on acquiring six Fazoli’s franchises in rural West Texas, analyzing the potential revenue and EBITDA. The panel delves into challenges like hidden lease costs and geographical dispersion in managing multiple locations. They highlight why existing franchisees are hesitant to buy, and the risks tied to restaurant franchising. The talk also covers market dynamics, the impact of renovations on profitability, and the appeal of established brands versus new dining options. It’s a deep dive into the intricacies of restaurant investment.
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insights INSIGHT
Franchisee Interest
Existing franchisees are usually the most likely buyers of franchises.
Their lack of interest in this Fazoli's deal raises concerns.
insights INSIGHT
Fazoli's Description
Fazoli's is a fast-casual Italian restaurant chain, similar to a down-market Olive Garden or a strip mall Italian place.
The restaurants are located in less populated areas of Texas.
volunteer_activism ADVICE
Investment Strategy
Buying this Fazoli’s franchise is a bet on maintaining current performance, not on growth.
Restaurants are difficult businesses where maintaining margins is challenging.
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Would you buy 6 top-performing Italian franchise restaurants spread across rural West Texas?
Sponsors: This episode is sponsored by Capital Pad – a game-changing platform that connects acquisition entrepreneurs with investors and capital. Whether you're buying or funding a deal, visit https://www.capitalpad.com and tell them Acquanon sent you.
Thanks also to Edler Zain, the CPA firm built for entrepreneurs. From QofEs to full-service CFO support, get the Builders Package at https://www.edlerzain.com – and mention Acquanon!
In this episode of Acquisitions Anonymous, the full panel—Mills, Bill, Michael, and Heather—dives into a listing for six Fazoli’s franchise locations scattered across Abilene, Midland-Odessa, and Lubbock, Texas. With over $13M in revenue and $1.1M in EBITDA, the team breaks down the dynamics of buying a foodservice business in rural America. They explore the challenges of multi-location management in a geographically spread market, the hidden costs of restaurant leases, CapEx requirements, and why existing franchisees might be passing on the deal. From franchising quirks to fast-casual Italian economics, it’s a meaty one—hold the marinara.
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