Michael Horowitz - Primer on Franchises - Ep.185

Ep.185: Alex (@aebridgeman) is joined by Michael Horowitz (@mahorowitz).

My guest today is Michael Horowitz who recently sold a roll-up of 20 Wingstop franchise locations (15 acquired, 7 built, 1 closed) and co-authored a paper with A.J. Wasserstein about the franchise path for entrepreneurs. In this conversation, we discuss his strategy and components of an effective franchise roll-up. We touch on the pros/cons of the franchise path, the role of debt, choosing a brand, challenges, and opportunities with multiple locations, and much more. If you’re considering franchises, this episode can serve as a great primer and base of knowledge for exploring the model. Please enjoy this episode with Michael Horowitz.

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Learn more about Alex and Think Like an Owner at https://tlaopodcast.com/

Links:

Michael on Twitter

Ten Essential Questions to Consider When Selecting a Franchise Brand for a Search Fund Journey

Timecodes:

(00:00:00) Intro

(00:03:18) Michael’s franchising career

(00:10:00) Choosing a smaller brand like Wingstop

(00:14:14) Transferring rights between franchisors

(00:15:27) Michael’s growth trajectory

(00:16:58) How restaurant groups continue to scale

(00:19:12) Michael’s decision to sell

(00:22:26) Choosing food franchises over other opportunities

(00:26:14) How franchises can uniquely use debt

(00:31:12) The culture shock of moving from finance to managing fast-food employees

(00:35:34) Learnings from the restaurant industry

(00:37:35) Career paths within franchising

(00:39:47) Hiring and recruiting challenges

(00:47:28) Multi-franchise investor strategy

(00:52:10) Advice for folks considering franchising

(00:54:16) What strongly held belief have you changed your mind on?

(00:56:07) What’s the best business you’ve ever seen?