Time Needed to Investigate Franchise Opportunities

Happy “What’s The Deal Wednesday” Franchise Friends!

Welcome to this week’s edition of the “What’s the Deal With Franchising?” Newsletter.

In Today’s Newsletter:

  • ⌛️ The Importance of Having Enough Bandwidth for the Franchise Buying Process

  • 🏠 HOMEStretch Home Services Franchise Breakdown

  • 🗞️ 4 Franchise News Headlines

If you haven’t already, hit the subscribe button below to learn what the deal is in franchising every week…straight to your inbox. No spam. No fluff. Just the deal.

What’s the Deal…

The Importance of Having Enough Bandwidth for the Franchise Buying Process

It’s very common for me to meet a new client who is interested in exploring franchise opportunities that has no time for the due diligence process.

“Yes, I would like to invest $150,000+ into a business, but I only have an hour or two per week to dedicate to learning…and I can only meet with franchises after I get off of work at 5 pm.”

Here’s why that’s a mistake and why I often tell those people that now may not be the right time to explore franchises:

First of all, if a person don’t have the time to dedicate to investigate franchise opportunities, how can that person expect to carve the time out needed to actually run the business…successfully?

Even with a manager in place, time investment, attention, and focus are extremely necessary. If someone doesn’t even have the time to LEARN about franchises, they probably don’t have the time to RUN a franchise.

Secondly, it takes time to learn about franchises. Between talking to the franchise directors (whose job it is to educate about the in’s and out’s of the opportunity), reading Franchise Disclosure Documents (FDD’s), speaking with existing franchisees, putting together a funding strategy, and preparing for Confirmation Day, there is a lot to dive into.

If someone is investigating 2-3 franchises, that equates to at least 3-5 hours per week of due diligence. As that person narrows down opportunities, he or she can dedicate more and more time to each remaining opportunity, but it’s still a lot.

The last thing I, as a franchise advisor, want to see is someone do the bare minimum amount of research and buy a franchise that will end up as a nightmare for them.

If I have a client whose schedule is already overloaded, I’ll tell them flat out that now may not be the best time to proceed. I would rather someone not buy a franchise than buy one that they’re casually investigated.

It requires a structured, intentional approach—and most importantly, dedicated time each week.

So, how much time does the franchise buying process actually take?

On average, a well-planned franchise investigation takes 6–8 weeks, with most candidates committing 5–10 hours per week to researching, attending calls, reviewing documents, and speaking with franchise directors & franchisees.

This might sound like a lot, but considering the gravity of the decision, it’s entirely necessary.

Without the proper time commitment, one can overlook red flags, fail to ask the right questions, and end up investing in the wrong franchise.

Anyone that’s serious about exploring franchise ownership should treat the due diligence process like they would any other major investment: with time, diligence, and the right guidance.

Ready to commit to the process? Let’s talk about the right franchise fit for you.

Your Franchise Advisor,

Christian Dadulak

Franchise “Deal” of the Week - HOMEStretch Home Services

Competitive Advantages:

  • Revolutionary NEW home preparation industry

  • Core audiences are moving due to death, divorce, downsizing and HOMEstretch provides the solution to their home preparation needs

  • Realtors provide a strong repeat referral network that drives the vast majority of the business

  • Quoting Tools with HOMEstretch’s proprietary algorithm

  • Business development playbook and strategies

  • National partnership with Sherwin Williams (flooring and paint)

  • Comprehensive training Scheduling, quoting, management, and biz dev software

  • Minimal employee model - subcontractors minimize fixed costs and complete the work

  • Low investment and FAST RAMP UP TIME - high average ticket

  • Home-based, Low investment, low fixed overhead

HOMEStretch Breakdown:

By the Numbers:

Minimum Financial Requirements…

(You need to meet these requirements at a minimum to be considered for this franchise)

Net Worth - $250,000+

Liquidity - $150,000+

Item 7 - Estimated Initial Investment Range

This range typically contains everything to get the business up and running, including the franchise fee and 3 months of working capital

Investment: $109,700 - $177,750

Approximate Down Payment w/ SBA Loan: $60,000 (assuming 20% down - $60,000 minimum because that’s the franchise fee due at the time of signing and that counts towards the 20% cash injection requirement)

Item 19 - Financial Performance Representations:

Affiliate Location 1:

Gross Revenue: $2,559,184

Net: $453,258

Average Ticket Nation-Wide: $7,549

Fees:

  • Royalty: 7.25%

  • Brand Fund: 1%

  • Franchise Fee: $60,000

Total Locations Open: 85+ Territories

Number of Franchisees: 44+

Real Estate Requirements: None

Employees Needed to Start:

  • Business Development Rep

  • Project Manager

  • Franchisee can hold either of those roles

Territory: Around 150,000 Households

Learn more about Homestretch Home Services

*Refer to the most recent Franchise Disclosure Document. This information may have changed since first published and is provided for informational purposely only. I recommend that you always verify feedback, investment amounts, and offers for the franchise opportunity directly with the franchisor prior to deciding to invest. No offer is being made and can only be made by the franchise’s disclosure of the Franchise Disclosure Document (FDD)*

4 Franchise Industry Headlines

“Dallas-based CMG Companies believes the market is ripe for a national laundromat brand with a well-known name and backed by one of the largest retail companies in the world.

CMG signed a 50-unit development agreement in the Southwest with Tide Laundromat, which is a subsidiary of Procter & Gamble.

The deal comes on the heels of two large development deals Tide inked last year: a 51-unit agreement with the former chief strategy officer at KBP Brands last fall and a 14-unit agreement with Consolidated Cleaners & Consolidated Laundromats in Florida last summer that will bring the group’s unit count of Tide Laundromats and Tide Cleaners to 47.”

“James Franks has learned a thing or two in his franchise career, which spans more than a quarter century. He looks to put those lessons to work in his newest venture: senior vice president of franchise growth for beauty and wellness platform WellBiz Brands.

‘I get to help people achieve their lifelong dreams, goals and desires by the franchise system I represent and be the vehicle for them to achieve those goals,” Franks said. “Whether it’s the most sophisticated franchisee that owns 200 locations under multiple brands or a first-time entrepreneur that used their life savings opening their first location, it’s very important we handle it correctly and with class.’”

“When we decided to franchise, we hired a plethora of different consultants and brought on a franchise team. We had many consultants tell us, ‘You guys are fine. You guys were set up well to launch a franchise.’ But in retrospect, we needed more. We’re bringing in more top-notch talent to run the franchise side of our business. We need to be early in building out an A-plus franchise team, sooner than perhaps originally expected, because we’re kind of building our own roadmap here with franchising.”

“Garren Grieve sees two types of personalities in franchise owners: Those who have a more inventive approach and others who strictly adhere to the system.

Grieve, a multi-brand franchisee, said he’s one of the latter.

‘Some business owners add their own touch, from development of the menu to products and so forth,’ Grieve said. ‘I’ve never really been that passionate in the sense of having a creative mind, though. I’m more somebody who loves procedure, following things that have been established and proven to work over time, and in some cases, decades.’

In following the blueprints from several concepts, Grieve built a portfolio with Jack in the Box, Del Taco, Denny’s and Keke’s Breakfast Cafe totaling 72 locations. In the past three years alone, he opened 20 restaurants, including 12 Jack in the Box units in Salt Lake City, which marked the brand’s first foray in the market.”

That’s it for this edition!

Let me know what you have questions about, what you’re curious to learn, what franchises you would like for me to break down, and more.

I want this newsletter to give you what you find most valuable so let me know how I can improve it. If it needs more information, less information, to be longer, shorter, share more industry news, etc, I can make that happen.

See you next week!

P.S. Want My Help Buying a Franchise?

Reply to this newsletter or schedule a meeting with me via the link below…all at no cost to you, ever. All of my help is 100% complimentary - I get paid a referral fee by the franchises if you buy into their brand.

Disclaimer
The views, opinions, and information expressed in this newsletter are those of the author(s) and do not necessarily reflect the official policy or position of Franchise Sidekick. This newsletter is in no way affiliated with Franchise Sidekick. This content is provided for informational purposes only and is not intended to represent the views or endorsements of Franchise Sidekick.