I rarely see this topic covered on Bigger Pockets, so I decided to interview my partner, Bob Paulus. In addition to PPR, he’s been quite successful in running franchises. He started out buying a couple Rita’s Water Ice franchises, before getting involved with Hollywood Tans. These were all successful. It wasn’t until Bob got more involved with PPR that he and his wife sold several of the franchises, except for a Rita’s Water Ice. He has seen all three sides—buying, running, and selling—of a franchise.
Starting Out: How He Did It
Can you tell us a little bit about how you got started in Franchises or Franchise Investing and why it was right for you?
I wanted to work for myself. I started researching what companies were available in the area. And my three main considerations were: what can I afford; what interests me; and what is a good fit? But, as much as I wanted to work for myself, I didn’t have the time, knowledge, or money to start a business from scratch. And, when you get involved with a franchise, because they have processes in place, it makes it much easier.
What advice would you give someone that’s new about investing in a franchise?
Make sure you do your research—it is all about the due diligence. Also, make sure you’re not stretching yourself too thin financially. If you have a partner, even if it’s a spouse, it is critical that everyone’s roles are clearly defined from a time and financial perspective. I’ve seen a lot of partnerships dissolve for lack of communicating the responsibilities.
Buying a Franchise
What’s the easiest and safest way to buy a franchise?
The easiest way, of course, would be if you have cash in the bank and you don’t need to get a loan. If you have a line of credit …read more