Acquisitions Anonymous - #1 for business buying, selling and operating Inside a $4.85M Trampoline Park Franchise in Texas
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Apr 4, 2025 Connor Groce, a franchise consultant with expertise in multi-unit businesses, joins the conversation to dissect a $4.85M trampoline park franchise in Texas. He reveals essential insights into cash flow and the true meaning of a 'turnaround.' The discussion touches on the challenges of attracting franchisees and the impact of technology integration. Connor also emphasizes the significance of strategic decision-making in revenue generation and evaluates the fit for buyers in this high-capex market, making it a must-listen for aspiring entrepreneurs.
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Pool Franchise Woes
- Some pool-based youth enrichment franchises face challenges due to high switching costs at lease renewals.
- Landlords exploit the difficulty of moving in-ground pools, impacting these franchisees' profitability.
Overpriced Listings
- Many listed businesses are overpriced based on the seller's past investment rather than market value.
- This discrepancy between asking price and true worth makes it difficult for buyers to find reasonable deals.
Basis Bias in Franchises
- Franchise sellers often exhibit "basis bias," anchoring their asking price to their initial investment disclosed in the FDD.
- This bias inflates prices regardless of actual business performance, creating challenges in price negotiations.