Acquiring Minds How a $40k Acquisition Led to a Franchise Empire
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Oct 11, 2022 James Temple, an entrepreneur who acquired a struggling Mathnasium franchise, discusses topics such as buying vs. starting a franchise, turning around underperforming locations, assessing franchise system risks, criticisms of franchises, the numbers behind his first acquisition, growing to 19 locations, evaluating franchise opportunities, revenue range and fees of Mathnasium franchises, passion and purpose in franchise ownership, franchise consultants, and how to start investigating opportunities.
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From A Magazine Ad To First Acquisition
- James and his mother discovered Mathnasium from a magazine ad and pursued it while in business school.
- They bought a mentoring franchisee's underperforming location in September 2009 and closed quickly.
Start Small And Reinvest Cash Flow
- Start small to limit financial risk and learn the business before scaling aggressively.
- Use early cash flow from a turned-around unit to fund subsequent locations rather than overleveraging.
Blend Acquisitions With Organic Growth
- Combining acquisitions with organic openings lets you secure markets and scale faster within a region.
- Acquisitions accelerated growth once they had proven systems and geography mapped out.