Why Real Estate Investors are Buying Franchises with Jon Ostenson, Ep. 354

Jon Ostenson is a consultant, investor, author, and international speaker specializing in the area of non-food franchising. Having served as the President of an Inc. 500 franchise system and now as a multi-brand franchisee, himself, Jon is uniquely positioned to educate others on franchising and franchise selection. Jon shares that more and more real estate investors are turning to franchises as a viable passive investment alternative. These franchises extend well beyond restaurants and typical retailers, providing a wide array of opportunities.  In fact, some of these franchises even serve as excellent compliments for multifamily apartments. 

Let’s dive in to learn more about franchising and how it can be complementary to your real estate investments.

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[00:01 – 05:03] Opening Segment 

• Jon talks about his background.
• Why Jon decided to leave corporate.
• An introduction to the franchise space.

[05:03 – 10:28] Franchising 101

• Why there is a booming in franchising 
• Why franchising and small business ownership present new investing opportunities.
• The franchise advantage VS Starting a new company
• Some of the benefits of franchising
• Jon explains why so many real estate investors are turning into franchisers.

[10:28 – 26:04] Different Opportunities

• Jon talks about Amazon resistant businesses where you see a lot of traction.
• What to use to evaluate a business.
• The benefits of identifying opportunities that may not even be on your radar.
• Some of the drawbacks that people should know about before seriously considering investing in a franchise.
• Jon explains what EBITDA is.
• How to figure out where the valuation is based on the EBITDA.

[26:04 – 31:02] Round of Insights

Apparent Failure:

Having a business and realising that the model wasn’t there from a profitability standpoint.

Digital Resource:

Slack

Most Recommended Book:

The Compound Effect

Daily Habit: 

Game planning

#1 Insight for Investing:

Don’t fall in love with a first investment without looking into a lot of different options as well.

Best Place to Grab a Bite in Atlanta:

Taqueria Del Sol

Contact Jon:

To learn more go to Jon’s website.

Tweetable Quotes:

“There are other avenues that deploy capital and franchising does present that opportunity” – Jon Ostenson

“Most of my clients have real estate investments as well so it’s not an “either or” and I think franchising can be a complementary or it can serve to diversify as well” – Jon Ostenson

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