I Lost $100K Trying to Save a Failing Franchise

What happens when you ignore your gut and hold onto a struggling franchise too long? In this episode, Erik Van Horn shares the raw story of how one decision cost him over $100,000—and how it shaped the way he approaches franchise buying today. From distressed sellers and employee transitions to risky leases and LOI clauses, this episode is packed with real-world lessons for franchisees, franchisors, and investors alike.

 

🔑 What You’ll Learn:

 

-The $100K mistake that changed Erik's entire investment strategy

-How to spot a distressed seller (and how to negotiate with them)

-What most sellers don’t understand about buyers

-How to structure a smart, risk-aware Letter of Intent (LOI)

-Why culture and employees can make or break an acquisition

-Real red flags buyers often miss (like prepaid revenue traps)

-The power of empathy, humility, and scars in franchise success

 

🛠️ Resources Mentioned:

 

-Franchise Secrets Facebook Group: franchisesecrets.com/facebook

-Scalable Franchise Coaching: scalablefranchise.com

-Free custom GPTs for franchise buyers and operators (coming soon in the Facebook group)

 

⏱️ Timestamps:

 

0:00 – The $100K mistake that started it all

1:14 – What went wrong: remote ownership, false optimism, sunk costs

3:38 – Why some deals are better left behind

5:50 – The psychology of a distressed seller

6:55 – What buyers are REALLY thinking (but don’t say out loud)

9:00 – How to protect yourself with a rock-solid LOI

12:46 – Lease pitfalls, employee contracts, and legal landmines

18:46 – Secret shopping: how to really understand a franchise’s culture

21:22 – How to evaluate team dynamics and playbooks post-acquisition

23:31 – Ego, empathy, and becoming a better franchise buyer

26:11 – Why peace of mind is often more valuable than the best price

27:39 – How to manage risk when buying a franchise

28:26 – What’s next: acquisitions, GPT tools, and how to get involved

 

📢 Subscribe & Follow:

Don’t miss future episodes with top franchise operators, experts, and insiders. Subscribe on Apple Podcasts, Spotify, or wherever you get your podcasts.

 

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

 

#Franchising #Failure #Lessons