Capitalist Investor

Would You Be A Good Franchise Owner? Ep. 291

• Strategic Wealth Partners

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In the latest episode of the Capitalist Investor podcast, hosts Derek, Luke, and Tony delved into the lucrative world of franchise investments. This episode provides a wealth of insight into different franchises and what makes them appealing from an investor's standpoint. Here are the five hot topics discussed:
1. Crumble Cookies: A Sweet Success Story
The conversation kicked off with a tasty discussion about Crumble Cookies. Luke recounted a fascinating encounter with an entrepreneur who built a mini-empire of Crumble Cookie franchises in Arizona and Utah, highlighting the chain's rapid growth and immense popularity. Despite its current saturation, it served as an example of how a well-timed, high-quality product can lead to substantial financial rewards.
2. Senior Care Franchises: The Evergreen Need
Tony provided a compelling case for investing in senior care franchises, such as Visiting Angels. With the aging baby boomer population, the demand for non-medical in-home care is skyrocketing. Tony emphasized that this sector could witness at least a 20 to 30-year growth trajectory, making it a stable and potentially lucrative investment. However, he also pointed out the challenges, particularly hiring qualified and compassionate staff.
3. Fast Food Giants: The Alluring Consistency of Taco Bell
Derek made a strong argument for fast food franchises, specifically Taco Bell. He noted the universal appeal of Taco Bell, drawing patrons from diverse economic backgrounds. With an always-busy drive-through line, Derek sees Taco Bell as a reliable and consistent moneymaker. The discussion also touched on the effectiveness of using apps for maximizing customer engagement and loyalty, enhancing the franchise's profitability.
4. Mental Health Services: Addressing a Growing Crisis
The hosts also touched upon the rising importance of mental health services. With increasing mental health challenges, especially among younger generations, investing in mental health franchises can be both profitable and socially impactful. These businesses are becoming more prevalent and are aimed at providing therapeutic and psychological support, which is increasingly in demand.
5. Automotive Services: The Timeless Necessity of Oil Changes
Tony brought attention to the enduring need for automotive services, like those offered by Take 5 Oil Change franchises. Despite the looming transition to electric vehicles (EVs), Tony believes the current fleet of gas-powered cars still provides a robust market for at least another decade. He acknowledged the potential challenge these businesses might face with the rise of EVs but suggested that they could pivot to offer mechanical services for electric vehicles.
Conclusion
The latest episode of the Capitalist Investor podcast provided a comprehensive look at various franchise opportunities, each with its own set of advantages and challenges. Whether it's the sweet allure of Crumble Cookies, the essential service of senior care, the evergreen demand for fast food, the rising importance of mental health services, or the practical needs of automotive care, each option offers unique investment opportunities. 
As always, the hosts recommend doing thorough research and consulting with qualified professionals before making any significant financial commitments.
Stay tuned to the Capitalist Investor for more insights into the dynamic world of investments and financial strategies.

Hello, and welcome to this episode of the Capitalist Investor. As always, you have me, diamond hands d, and we got the whole crew together today. Cool hand Luke and Tony the tiger. What's going on, guys? We got a fun topic today. All right, since this is your idea, why don't you roll it out? So, as somebody brought in crumble cookies yesterday in the office. Were they really cookies, though? They taste like cake. They're just so soft. Some of them are huge. Yeah, yeah. Anyway, I was able to resist. I would say they are cake cookies. I'd say they're the best cookies. I ate too many of them. I had, like, a sugar high all day. And I met a guy over in. I was down in Dallas at a conference, and this guy is a pretty cool cat. He basically started a restaurant industry over, like, in Arizona, Utah area. And he was, like, one of the first owners of crumble cookies franchise, and he built up, like, 50 or 60 of these locations, and he's balling out in a lot of money. He is cash flowing like crazy. These things are popular crumble. I know. My mom loves crumble. She goes there every weekend to get her dessert fixed. So that kind of got sparked an idea. Derek was in there eating cookies with me, and I'm like, how about we talk about franchises? Let's talk about if it was up to us, what franchise would we pick and why, or what would get us excited? Because that's another way for you to own a business. If you don't want to start a business from scratch and from the bottom up, if you have an allocation of money on the side, maybe you're retired and you're kind of bored, or maybe you're approaching retirement. You want a new gig. You can always allocate money to actually have the foundation built for you already, pay the franchise fee, show the, you know, have the playbook presented to you, and then you can go off and run the playbook. Right? So crumble, I think, is probably too popular now where it's probably the opportunity's been missed a lot of places, because they're everywhere already. You know, there's certain areas in the economy, I think, where you might want to take a look at. So I'll start off with you guys before I get into my mind, because of certain reasons. Tony, where would you. If you wanted to say, I'm tired of being a financial advisor and I'm gonna do a franchise, what would you do? You know, like, I think as soon as you see franchise, you start thinking of, like, the big boys, right? Like, so, I mean, if I was gonna pick, like, a large franchise, I would probably do something like chick fil a. Like, I mean, you just saw it. The lines always there. There's, it's always there. People are always trying to get their chick fil a, but I wouldn't do that. What I would do is I just did a little digging on this, and I looked up some of the top 200 franchises. And what made sense to me that I feel is always going to be needed is, like, like, senior care, especially with the aging baby boomer population, this is going to be a. At least. At least a 20 year Runway from right now is maybe even longer, right, maybe 30 years. So there's a franchise called, like, visiting angels. And essentially, it's just, they're, they're leading home health, their home health care. So they're not. They're. They're non medical services. So they're basically coming to your house for a senior to make sure. And I've. And this is kind of what I'm going through with my mom right now is, you know, is it home health care? Is it assisted living? You know, what does she need? And, you know, like, if I would have known this about several months ago, like, just known about a friend, I would have probably contacted them and say, hey, I need somebody to just come over once a day for an hour, make sure my mom is eating and taking her medicines. Those are the key essentials for my mom right now. And that's where a franchise I would like to do. Do it with a little bit slow growth, because I think you're only going to be as good as the people working for you because they're the ones that are the frontline workers who are going to the houses that people like. They're not mean. They're nice people. That would be a very. I would be very diligent on the best I can to hire the, you know, the most friendly and talented people as possible. Not just anyone that can flog a mirror, but that's a very difficult spot right now because the medical field is, I think, a little bit behind on staffing, just in general. So the, the headwind of that franchise in particular might be finding that qualified person. Yeah. So you always. Those are a bunch of good reasons to own a franchise, but I think Taco Bell is probably where I go first. Let's be honest. I would be your number one customer. The best part about Taco Bell is you look at the drive through line and it's a seven series BMW, and then old Chevy Cabriolet or something. It's. Everybody loves Taco Bell. Doesn't matter how rich, how poor you are, where you come from, everybody loves it. There's always a line. And I think I would make a great Taco Bell franchise. I really do. Would you be your. I said I would be your number one customer. Would you be your number one customer? Oh, yeah. Would you eat your own supply? Yeah, exactly. He ain't a drug dealer. Yeah, but the. Maybe. Maybe Taco Bell is a drug to me. That's for sure. Never go to Taco Bell. I just don't. I don't think my supplement, when they're on the way home today, actually. And I. But I've heard that if you can dial in the app. Yeah. And, like, get a custom made, like, taco. That's where. Dude, I get. That's where you hit the home run. I get, like, $30 worth of stuff. If I ordered inside the store, it'd be about $30 on the app. It's probably about 14. So I get, like, half off because you start making the combos on the app or you start getting the. I'm, like, the highest tier reward member. I get invited to vip stuff because I spend so much to talk about. So I get free rewards every time I go, too. So you spend all that getting half off. So use the app, is what I'm saying. Good idea. Okay. The other one that I actually thought of, and then I was surprised to see it. So high on the list is Mary Maids. So any type of house cleaning service, just from, you know, experience, just trying to look for someone to do it. It's, like, insanely expensive, and they're always fully booked, it seems. Yeah, I've tried a couple people, like, wreck, you know, I'm done with cleaning services that no one can clean my house better than me. That's. I get so irritated. I'm like, what did I just. What did I just spend money on? It's still dirty. Yep. I spent$400, and it was dirty two days later, so it was not worth it. One time I did it. The two I have is I actually know somebody that bought a franchise. Apparently he's doing pretty well around here. It's like, you know, one of the big, you know, you want to look at trends for the future. You also want to look at current trends. I think one of the current trends that will still be a bigger trend, if not worse trend down the road is kind of the mental health crisis we have here in America. Like, younger people just twenties, thirties, everyone's dopamine out on their phones all the time, social media, comparing themselves, not understanding their purpose in life. There's all kinds of weird things going on in the younger generations. I think technology has been one of the worst things that can happen to the human brain. So mental health, I think, is important. There's some franchises out there, I don't know the exact name of it, but there's a mental health franchise, like psychologist kind of franchise that's becoming more and more popular, that's targeting the younger generations to come in, kind of therapeutic therapist kind of franchise out there. So I'd look into something like that. The second thing I'd look into which you guys are laughing about and people would say, why would you do this? Because ev's might be right around the corner, is I do really like those take five oil changes, those pop up places, it's very quick, you walk in, you drive in, they do your oil change. It's kind of expensive, but people like convenience and instant gratification. So they're willing to pay 80, $90, $100 for an oil change. Then they try to upsell you with the, you know, windshield wipers and everything else. Like people was like, yeah, let's change, let's change your transmission oil here. Most people are like, I don't want deal with this in the future, so why not? So those are actually great cash flowing businesses. And we have the oldest car fleet right now on the road in history. So people are just keeping their vehicles longer. So they're going to need more oil changes. They want to take care of the current vehicles rather than buy new vehicles because they can't afford new vehicles. So I think that's a good ten year kind of business if you wanted to cash flow for ten years. The question is, once ev's do completely come around because you don't need oil anymore, what does that business transition into? So that's going to be an important question for that kind of franchise is what those businesses transition into. Maybe they're just mechanic shops for electric vehicles, maybe they just transition to more mechanical route, I don't know, but that's an important kind of conversation. But I think in the meantime it's going to be nice, nice little business for you. So just to give you some, so like, not. I feel like with so many gas powered cars, I think a lot of people know how to change their oil. And as we transition to electric, people are gonna lose that skill. So like as the, as the fleet goes towards the fleet of cars, goes towards electric, you're gonna have less mechanically inclined people. So maybe it. Maybe it just kind of stays there, you know, if that makes any sense. I wish I knew how to change my oil. I don't know how to do anything. Car that's in park right now, I can't. I don't know how to fix it, so. But he's gonna try. I'm gonna try. That's. I have already watched two YouTube videos. It's why I was late to work today. All right, well, good stuff there. Always, like, a little lighter episode. So if you guys have any questions. If you have any franchises yourself. Yeah, you're interested in, I'm curious to hear about it, so. Absolutely. Hit us up at info at Swp connect.com, and we'll talk to you next time. The opinions expressed in the podcast are for general informational purposes only and are not intended to provide specific advice or recommendations for any investment, legal, financial, or tax strategy. It is only intended to provide education about the financial industry. Please consult a qualified professional about your individual needs.