Franchise Investing: An Alternative Path to Business Ownership

For real estate investors, entrepreneurs, and high-income professionals looking to diversify beyond real estate, franchise investing can offer an alternative path to business ownership. In this episode of Lifetime Cash Flow Through Real Estate Investing, Jon Ostenson explains how investors can evaluate franchise opportunities, use financing to acquire businesses, and build income streams outside traditional real estate. Ostenson emphasizes that franchising is not passive, but with the right business, operator, and franchisor support, it can become a scalable component of a broader investment strategy.

What Is Franchise Investing?

Jon Ostenson works with people who want to identify business ownership opportunities that fit their goals and market. His approach is similar to a real estate brokerage model, helping clients evaluate opportunities and connect with businesses that are looking to expand. He personally invests in franchises and commercial real estate, and he sees value in combining multiple investment vehicles rather than relying exclusively on one asset class.

One of the major themes of the conversation is the opportunity outside traditional food franchises. Ostenson explains that non-food franchising includes home services, property services, health and wellness, senior-focused businesses, and B2B services. These businesses can have characteristics that appeal to investors, including fewer operating hours, fewer hourly employees, less build-out capital, and potentially stronger margins than some food-based businesses.

Why Non-Food Franchises Are Getting Attention

Ostenson describes what he calls the “non-sexy” side of business ownership as an area worth examining. Businesses involving services such as dumpsters, insulation, restoration, artificial turf, pool cleaning, cabinetry, and other property-related services can serve persistent consumer and business needs. He argues that investors should look for industries people are likely to continue spending money on regardless of economic conditions, particularly areas involving homes, health, aging parents, children, and pets.

The discussion also explores how artificial intelligence may change the business landscape. Rather than simply looking for businesses that AI cannot affect, Ostenson suggests considering businesses where technology can improve marketing, efficiency, routing, and other operational functions without replacing the underlying service. He points to industries with less sophisticated competitors as potential opportunities for investors who can bring better marketing, technology, and operational systems into the business.

Building a Franchise as a Side Business

Franchise investing can also appeal to professionals who want to maintain their W-2 income while building a business. Ostenson says roughly half of his clients are interested in starting a franchise alongside their existing career, although he cautions that business ownership should not be viewed as effortless or completely passive. Instead, he describes the model as “semi-involved,” where the owner can remain involved at a strategic level while a strong operator handles much of the day-to-day business.

The operator is one of the most important pieces of this strategy. According to Ostenson, a strong franchise system combined with a capable and properly incentivized operator can allow an owner to step away from daily operations while still maintaining oversight. If the operator does not perform, however, the owner needs to recognize the problem and replace them. This operator-focused approach has strong parallels with real estate investing, where investors often rely on experienced property managers and operating partners to scale.

Franchise Investing and Real Estate Diversification

For real estate investors, one of the most interesting aspects of franchise investing is the potential for diversification and vertical integration. Ostenson notes that approximately two-thirds of his clients invest in real estate, and some use businesses to complement their existing portfolios. A real estate investor could potentially acquire a business that provides services they already purchase from outside vendors, such as flooring, cabinets, pool cleaning, or property management.

This creates an opportunity to build multiple income streams while potentially gaining greater control over services connected to an existing real estate operation. The conversation highlights how investors can think beyond simply acquiring another property and instead look for businesses that complement their current assets, relationships, and expertise.

How to Finance a Franchise Purchase

Financing is another major consideration for anyone researching franchise investing. Ostenson explains that banks may be more comfortable financing franchises because of their established track records and historical data. He identifies SBA loans as one of the most common financing options and explains that service-based franchises can often require a lower total investment than brick-and-mortar or food franchises.

According to Ostenson, service-based businesses such as home services, property services, consulting, and in-home senior care can have an all-in investment in the approximate $100,000 to $250,000 range. He says buyers will typically contribute around 15% to 20% down, depending on the opportunity. He also discusses using a retirement account through a ROBS structure, potentially in combination with SBA financing, as another method of funding a business acquisition.

Using Partners and Investors to Acquire Businesses

The conversation also examines whether investors can use partnerships and outside capital to acquire businesses in a similar way to real estate syndications or joint ventures. Ostenson says outside capital is used in a minority of franchise transactions, but it does happen. In those situations, the structure can involve a capital partner and an operating partner working together to acquire and grow the business.

For experienced real estate investors, this provides another familiar framework for thinking about business ownership. Instead of trying to personally handle every aspect of an acquisition, an investor can potentially bring together capital, operating expertise, and industry knowledge. The key is making sure the people involved understand their responsibilities and can execute the business plan.

Who Is Jon Ostenson?

Jon Ostenson is an entrepreneur, franchise investor, commercial real estate investor, international speaker, and franchise consultant based in Atlanta. He works with clients across North America to identify franchise opportunities and helps prospective business owners evaluate businesses based on their goals, market, and circumstances. He also authored Non-Food Franchising, a resource focused on franchise opportunities outside the traditional food category.

Ostenson’s perspective is particularly relevant for real estate investors because he personally participates in both franchise investing and commercial real estate. Throughout the conversation, he highlights the importance of diversification, strong operators, recurring demand, thoughtful financing, and finding businesses where technology can improve rather than eliminate the underlying service.

Key Franchise Investing Takeaways

Investors considering franchise investing should pay particular attention to:

• Non-food service businesses: Home services, property services, senior care, and B2B businesses can offer alternatives to traditional restaurant franchises.
• Operator quality: A capable, properly incentivized operator can be critical to creating a business that does not require the owner to manage every daily task.
• Financing: SBA loans, cash contributions, and retirement-account strategies can provide different ways to structure an acquisition.
• Real estate synergies: Businesses can potentially complement an existing real estate portfolio through diversification or vertical integration.
• Technology and AI: Investors may find opportunities in established industries where better technology, marketing, and operational systems can create an advantage.

For wealthy professionals, entrepreneurs, and real estate investors, franchise investing can provide another avenue for building cash flow and business equity. Jon Ostenson’s approach demonstrates why looking beyond traditional franchises and focusing on durable demand, strong operations, financing, and strategic fit can be valuable when evaluating a business acquisition.

If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.

What Is Franchise Investing?

Franchise investing is the process of purchasing and operating a franchise business as an investment. It can provide an alternative to traditional real estate investing and may allow investors to build additional income streams through an established business model, brand, and support system.

Is Franchise Investing a Good Option for Real Estate Investors?

Franchise investing can be an attractive diversification strategy for real estate investors who want to build income streams outside of property ownership. Jon Ostenson explains that many franchise investors also invest in real estate and may use businesses to complement their existing portfolios or vertically integrate services they already use.

What Are the Best Types of Franchises to Invest In?

According to Jon Ostenson, non-food franchises in areas such as home services, property services, senior care, health and wellness, and B2B services can offer compelling opportunities. Examples discussed include dumpsters, restoration, pool cleaning, artificial turf, cabinetry, mobility solutions, and other essential services.

Can You Invest in a Franchise While Keeping a W-2 Job?

Yes, some franchises can be operated alongside a W-2 career. Ostenson explains that many of his clients initially pursue franchise ownership as a side business, although he emphasizes that franchise investing is not completely passive and requires meaningful involvement and oversight.

Can a Franchise Be Semi-Passive?

A franchise can potentially become semi-involved when the owner puts a qualified operator in place to handle day-to-day operations. The operator needs to be properly incentivized and capable of running the business, while the owner maintains strategic oversight and replaces the operator if performance is inadequate.

How Much Does It Cost to Invest in a Franchise?

The investment required depends on the type of franchise. Ostenson explains that service-based franchises can have an all-in investment of approximately $100,000 to $250,000, while some brick-and-mortar franchises may require $400,000 to $500,000 or more.

How Do You Finance a Franchise Investment?

SBA loans are one of the common financing options discussed for franchise investing. Ostenson explains that buyers may typically contribute approximately 15% to 20% of the purchase price, with the remainder potentially financed. Another strategy discussed is using a ROBS structure to use eligible retirement funds to purchase a business.

Can You Use Investors to Buy a Franchise?

Yes, outside investors can participate in some franchise acquisitions. Ostenson explains that these arrangements are less common but can involve a capital partner and an operating partner working together through a partnership or joint venture structure.

How Can Franchise Investing Diversify a Real Estate Portfolio?

Franchise investing can give real estate investors exposure to business ownership and another potential source of income. Investors may also acquire businesses that complement their real estate operations, such as property management, flooring, cabinetry, pool services, or other services they already purchase from outside vendors.

Are Non-Food Franchises Better Than Food Franchises?

There is no single franchise category that is best for every investor, but Ostenson highlights potential advantages of non-food franchises. These businesses may have fewer operating hours, fewer hourly employees, less build-out capital, and less exposure to food waste and changing consumer preferences.

How Can AI Create Opportunities in Franchise Investing?

AI can potentially improve marketing, operational efficiency, scheduling, routing, and other business processes. Ostenson suggests that investors look for industries where technology can enhance the business and create a competitive advantage rather than completely replace the underlying service.

What Should Investors Look for When Evaluating a Franchise?

Investors should evaluate the franchise model, market demand, financing requirements, franchisor support, operating requirements, and the quality of the potential operator. The conversation also emphasizes looking for businesses that provide services people are likely to continue purchasing, including services related to homes, health, aging parents, children, and pets.

00:00:35:09 – 00:00:58:24
Rod Khleif
Welcome back to lifetime cash flow through real estate investing. I’m thrilled you’re here, and I know you’re going to get tremendous value from the gentleman I’m interviewing today. And it’s not about real estate investing. But you know what? I’ve been shifting into other things, other ways to add value to my listener base. And, you know, I was you’ve heard me talk about this where there are 10,000 people a day turning 65 in this country, and it’s going to go on for decades.

00:00:58:24 – 00:01:14:21
Rod Khleif
And many of them have businesses that they need to sell. So I’ve been telling people, you know, don’t just think real estate, figure out what your vehicle is going to be, be it real estate, be it businesses, and get going right away. And that’s why when I got the bio from this gentleman I’m interviewing today, I was intrigued.

00:01:15:01 – 00:01:34:14
Rod Khleif
His name is John Austin and John is an expert in franchising and I believe in franchising. Now, if you don’t know me, I’ve built 30 businesses so far in my career. You know, I call them seminars when they fail. And I’ve had big seminars and little seminars. In fact, most of them were seminars. But but, you know, we fail our way to success.

00:01:34:15 – 00:01:50:13
Rod Khleif
And I believe it’s proven. And I think John will verify this, that, that franchises have a much better success rate than just starting a business on your own. I know the the casualty rate for new businesses is pretty high, but we’ll get into all of that. John, welcome to the show, brother.

00:01:50:14 – 00:01:52:23
Jon Ostenson
Hey, Ron. Excited to be here. Appreciate you having me.

00:01:53:02 – 00:02:06:22
Rod Khleif
Absolutely. So why don’t you do a better job than I did with introducing yourself? I know you, you know you’re an international speaker. You talk about this all the time. You just had an article in Forbes. Yeah. Bring us. Tell us who you are.

00:02:06:24 – 00:02:21:13
Jon Ostenson
Yeah. You know, as it pertains to your audience, you can think of me as a real estate agent or real estate broker, if you will. I play the exact same role where I help those that are interested in business ownership identify the top opportunities in their market. And, you know, some people get a referral fee on the back end from the seller.

00:02:21:14 – 00:02:43:18
Jon Ostenson
Very similar to the real estate model. Nice and clean and based in Atlanta, work with clients all over North America. About half of our clients are looking to make the jump into business ownership, maybe for the first time, and acquire a franchise. The other half are looking to keep their W2 job or their current area of focus and get it going on the side, and we can talk about that.

00:02:43:18 – 00:03:04:04
Jon Ostenson
I always want people going in eyes wide open. It’s not easy to go that path, but a lot of people do and franchising makes it doable. So lastly, I would just say, you know, I personally invest in franchises myself. I also invest in commercial real estate. I think it’s in all of the above strategy. I love Syndications, I love funds, I love the tax benefits that the government provides as incentives on the real estate side.

00:03:04:05 – 00:03:08:12
Jon Ostenson
Also love the active tax benefits they provide on the business ownership side.

00:03:08:14 – 00:03:28:12
Rod Khleif
Yeah. Well, you know, it’s interesting I got exposed to franchising by a couple of real estate partners I had back in Denver. We’re talking 30 years ago that had subways, subway, sandwich shops. They had like five of them, but I saw it. It pretty much killed them. I mean, they were there all the time. They were living those things.

00:03:28:12 – 00:03:50:24
Rod Khleif
And, you know, they were such a fast growing franchise back in the day that but so, so talk to us about the current climate as it relates to business ownership, business acquisitions, maybe the financing component. Just just yeah, I don’t even know where to start here. So there’s so many pieces. So, you know, help me out.

00:03:51:00 – 00:04:07:15
Jon Ostenson
Absolutely. And when we say the F word franchise people immediately think of subway. They think of McDonald’s. And we’ve got nothing against those guys. We need them. We support them. But my humble belief is they’re easier ways to make money that maybe have more desirable attributes. And so I actually wrote a book a few years ago called Non-Food franchising, which I’m happy to share with all of your listeners.

00:04:07:15 – 00:04:13:09
Jon Ostenson
And oftentimes, people don’t realize there’s a whole world of opportunities in other industries outside of food, which we can dig into.

00:04:13:10 – 00:04:28:21
Rod Khleif
But non-food franchising. Okay, sorry, I just want to hammer that home. So. So you’re not going to sell us a subway or a McDonald’s or a or a chick fil A or anything like that where they. I don’t think they. Well, anyway, you know what I’m saying? So it’s non-food. Okay. Interesting. Sorry. I just want to hammer that piece.

00:04:28:22 – 00:04:49:01
Jon Ostenson
Absolutely. No. Have great friends in those areas, you know, and think highly of them. But and you can do very well in some cases. But we like businesses to have maybe fewer operating hours, less hourly employees, maybe less less susceptible to consumer whims, changing less CapEx build out, you know, maybe higher margins because you don’t have waste while you’re doing the food space.

00:04:49:01 – 00:05:20:12
Jon Ostenson
So no, it’s industries such as home services and property services, non sexy little niches within there that private equity loves as well. You know it’s areas like health and wellness categories like seniors to your point 10,000 people turning 65 every day. Not only are they looking to sell businesses, but they’re also needing to be catered to in a lot of different ways, you know, a lot of different B2B services, business to business, you know, just so many different areas that, you know, when I mentioned them, you would probably say, well, I would never have that on my bingo card when I hear the term franchise.

00:05:20:12 – 00:05:35:05
Jon Ostenson
So it is fun exposing people to these areas. And to your point on the overall climate out there, we are seeing a lot of interest. You know, if you kind of go back a few years, I think Covid caused a lot of people to take stock of the path they’re on, and some made the jump into ownership shortly after that.

00:05:35:05 – 00:05:52:14
Jon Ostenson
Others said, hey, we’ll kick can down the road a little bit longer, but now they’re coming around and you know, the headlines around AI I see playing out on the ground all over the country. We have people reaching out saying, hey, I’m being asked to do more with less, or I’ve got fear for my job, or I just don’t want to try to keep up with what’s being, you know, required now in the space.

00:05:52:14 – 00:06:07:19
Jon Ostenson
I see where it’s moving. And, you know, we want industries that, you know, to get into business ownership and things that people are always going to spend on their non trendy in some cases non sexy. But you know, things that AI may be able to enhance versus competitors but not replace.

00:06:07:21 – 00:06:27:09
Rod Khleif
Yeah that’s that’s that’s a really valid point. And that that was going to be one of my questions to beat me to it you know is, is, you know, we want to at this point target businesses that won’t be replaced by AI. But just like you said, enhanced. So, you know, one of the things that I think is a real opportunity and maybe not in franchising, maybe it is, I don’t know.

00:06:27:09 – 00:06:50:13
Rod Khleif
But you know, these these retirees that are selling have businesses that haven’t embraced social media marketing, for example, you know, they’re still doing traditional marketing or definitely haven’t embraced AI yet. And do you see opportunity in that sector as well as franchising to, you know, bring in more of that? I mean, like right now, just to give you an example, we’re using Open Claw.

00:06:50:13 – 00:07:09:03
Rod Khleif
We have two standalone laptops and open claws doing about 90% of my marketing right now, just being adjusted by my marketing director. And we’re cloning. I mean, I’m doing all kinds of crazy shit right now. So do you see opportunities for these new technologies and even social media, which isn’t brand new anymore?

00:07:09:05 – 00:07:29:11
Jon Ostenson
100%. And there are a lot of ways that that plays out. You know, I think of different sectors, whether it be dumpsters or insulation or restoration, you know, categories like that where you’re up against a competitor base that’s very unsophisticated by and large, that, you know, maybe mom and pops type operations, they’re trying to keep their heads above water.

00:07:29:11 – 00:07:50:14
Jon Ostenson
And so if you’re able to come in in this case with a franchise, or if you were to buy an existing business and bring that expertise in, you know, it’s the front end, it’s the marketing side rights providing a more professional approach to a, you know, old, stodgy industry. But it’s also on the back end, you know, whether it be truck routing, let’s say, of service vehicles and optimizing that or just efficiencies within your team.

00:07:50:14 – 00:07:56:22
Jon Ostenson
I think there’s so much opportunity for, you know, margin benefit, but also for differentiation in some of these markets.

00:07:57:01 – 00:08:21:09
Rod Khleif
Well, I think anything you can do to improve the top line, I mean, you know, Peter Drucker famously said, every business is nothing but innovation and marketing. And and I thought, you know, and so those two things can really aid on the marketing front and probably the innovation side as well, candidly. But, you know, and I like what you said about doing this as a side hustle because, you know, real estate can absolutely be a side hustle.

00:08:21:10 – 00:08:49:13
Rod Khleif
You know, I’m blessed to host, really, I’m fairly certain now is the largest real estate coaching program on the planet. My students own 305,000 units that we know of. And and many of them start as a side hustle. They do it as a side hustle. So are their businesses. Because, you know, I used to think that that subway was like that initially when I first talked to these guys, but then I found out they were literally living at these franchise stores that they had.

00:08:49:15 – 00:09:05:23
Rod Khleif
Were there some businesses that they that someone could do as a side hustle that you represent? I know you represent like 300 high growth brands. According to your bio, here. Is anything come to mind that somebody could do? Still having a W2? You know that W2 may be on the rocks. There may be some stuff happening that’s concerning.

00:09:05:23 – 00:09:29:13
Rod Khleif
And and I’ve been talking about that for the last eight months that AI if you’ve got one of these jobs that’s on the bubble, you know that AI could be replacing. You know, I feel sorry for these kids that are doing legal, accounting, architecture, engineering, all these entry level, what were initially white collar jobs that are really being completely transformed or wiped out or they’re some side hustle opportunities.

00:09:29:13 – 00:09:31:07
Rod Khleif
I guess that was a long question.

00:09:31:07 – 00:09:47:15
Jon Ostenson
But there are and we actually work with even even more over 600 companies. So I don’t know if myself. Do you really gave you some fake news there, but know about half of those who we work with? Do you look to go in as a side hustle? And I always give the caveat, rod, that if business ownership was easy, everyone would be doing it.

00:09:47:15 – 00:10:01:15
Jon Ostenson
There’s a reason why the government incentivized through the tax code. There’s a reason why you can make outsized returns because it does take some degree of involvement. So we’re franchises may market a semi passive I like to call it semi involved. So again just to get that out of the way.

00:10:01:16 – 00:10:17:00
Rod Khleif
Fair enough. Fair enough. Oh I agree completely by the way I agree completely. If it was if it was easy everybody would be doing it. Is it worth it? You better freaking believe it’s worth it. But you’re going to have to roll up your sleeves. You’re going to have to stay up late, get up early, grind for a few years like most people won’t.

00:10:17:01 – 00:10:19:22
Rod Khleif
You can live the rest of your life like most people can’t. Yeah.

00:10:20:03 – 00:10:37:24
Jon Ostenson
100%. Well said. I’m ready to run through a brick wall now. Yeah, right. No. You know, franchising is like every other industry you’ve got, in this case, a lot of strong players that provide great support. But you’ve also got some franchises that don’t provide support. Right. And that’s where we come in to try to help. But let’s make the assumption that you have a strong franchise on the sideline.

00:10:37:24 – 00:10:52:04
Jon Ostenson
Then what it takes to run it semi involved is to put a good operator in place. If you’ve got a good operator and a good franchisor supporting them, that franchise can carry a lot of the daily support water for you. That’s one of the beauties of the franchise model. But that operator has to be incentivized. They’ve got to be driven.

00:10:52:04 – 00:11:07:05
Jon Ostenson
They’ve got to run the business like it’s their own. I mean, I’m living proof and so many of our clients that that is very doable. But if you don’t have the right operator, you’ve got to replace them. So, you know, there are a lot of businesses. Again, half of our clients look to get it going on the side, oftentimes with the eye on eventually jumping in full time.

00:11:07:05 – 00:11:22:03
Jon Ostenson
And there are franchises that only look for owner operators. But the vast majority, I’d say probably 75% of those that we work with do allow for that executive model of putting operator in place, and it really spans across a variety of different industries.

00:11:22:05 – 00:11:53:15
Rod Khleif
Well, I think you know what I’ve seen in the many the, the 50 years I’ve spent in, you know, as an entrepreneur, as, as a business owner, as, as a lover of entrepreneurship, you know, I think the most successful businesses are their most successful paths that I see. For someone to really get scale is to get into a particular business or even multiple businesses, but bring in an operator that has a lot of experience in that particular business.

00:11:53:15 – 00:12:09:17
Rod Khleif
Give them a piece of that business, obviously through a very careful vetting process, but give them or allow them to earn a piece and, you know, and then and then they’ve got an expert that’s running that business and, you know, they keep an eye on things, obviously. But is that viable? What I just described.

00:12:09:21 – 00:12:25:13
Jon Ostenson
100%. I think there are a lot of synergies with real estate as well. Probably two thirds of our clients invest in real estate, just like I do, both directly and indirectly, but especially in the case of an LP. You know, you’re you’ve got a GP. And I think with franchising, there’s some parallels there with that franchise or relationship.

00:12:25:13 – 00:12:47:02
Jon Ostenson
And the operator, I already mentioned the tax benefits, but also we see a lot of interest from real estate investors. Just they’re looking to diversify their portfolio. Right. They like the idea of the different income streams and how this could play together. There are some franchises directly playing the real estate market, whether it be, you know, I’ve had multiple real estate brokers that bought property management companies that kind of complement their core practice.

00:12:47:04 – 00:13:03:20
Jon Ostenson
But a lot of others say, hey, we love the idea of getting into flooring and cabinets and pool cleaning and things that we may already be paying for outside vendors in our business. But now why don’t we vertically integrate and then people will provide it to other investors as well. So now I think there’s a lot of synergy between the two.

00:13:03:20 – 00:13:04:24
Jon Ostenson
And again.

00:13:05:01 – 00:13:26:02
Rod Khleif
I had a carpet cleaning business when I had, you know, 500 houses in Denver. That was one of my one of my little offshoots, you know, and, you know, anytime you had property management company for decades, but for the person that, you know, hasn’t got $1 million in their bank account, what are some of the financing options for purchasing a franchise or any business for that matter?

00:13:26:02 – 00:13:42:03
Rod Khleif
Because it really doesn’t matter in that case. If it’s a franchise, maybe it does. Maybe it’s easier to buy a franchise. That’s a question I want you to answer. Is it easier if there’s a franchise involved versus, you know, starting a business versus buying an existing business? I’m sure there I think I know the answer, but if.

00:13:42:03 – 00:13:57:07
Jon Ostenson
You would, absolutely no. Banks prefer the track record of franchises and the fact that there’s a lot of historical data. So no, we have in SBA loans tend to be the most common form. So just a level set a little bit. If you were to get into a franchise that’s a brick and mortar, say customer facing retail type setup.

00:13:57:08 – 00:14:23:11
Jon Ostenson
You’re all in investment franchise fee, startup cost and working capital for several months, all built in. You’re oftentimes in the 400 500,000 ballpark. Certainly if you’re in food, you’re probably north of that. If it’s more of what we would call service based business, which is about what two thirds of our clients are getting into today, you know, home services, property services, consulting services, in-home senior care businesses like that, they’re all in investment tends to be more like 100,000 to 250, kind of in that ballpark.

00:14:23:12 – 00:14:26:23
Rod Khleif
That’s out of pocket or that’s that’s that’s that plus debt.

00:14:27:02 – 00:14:28:02
Jon Ostenson
That’s all in.

00:14:28:02 – 00:14:30:22
Rod Khleif
So that’s all in. So and what can you finance.

00:14:30:23 – 00:14:50:24
Jon Ostenson
Yeah. Typically you’d put in around 50,000 of cash into the purchase and then finance the rest through an SBA loan. Or one other path is what’s called the Rob’s program. And that’s where you take a retirement account. It’s got to be from a previous employer, but you can roll that over into a new account managed by custodian. We’ve got a partner on that piece of it, but then purchase the business with the retirement plan.

00:14:51:00 – 00:15:00:03
Jon Ostenson
So you’re self-directed in a way, and you could pay yourself a salary from that. Some people will use the Rob’s plus an SBA. So there’s a lot of different lock there, a lot of different ways to get involved.

00:15:00:08 – 00:15:14:13
Rod Khleif
Interesting, interesting. So when you throw that 50,000 number out there, I would I would assume that’s that the smaller level, the $150,000 range, if you’re talking about a half a million, I’m guessing it would be a bigger down payment. Yes.

00:15:14:15 – 00:15:17:18
Jon Ostenson
Yeah. It typically we see 15 to 20% down payment.

00:15:17:19 – 00:15:47:21
Rod Khleif
So okay okay okay. All right. And have you seen I mean obviously I teach syndication I teach joint ventures I teach bring in investors, you know, use other people’s money to put these things together. Is there an opportunity in the business purchasing environment to bring in investors in some fashion? You know, obviously you’ve got to show them, you know, you’ve got some idea of what the hell you’re doing and, and, or have people involved that know what they’re doing.

00:15:47:23 – 00:15:52:16
Rod Khleif
But have you seen people raise money for these businesses to take them down?

00:15:52:19 – 00:16:15:08
Jon Ostenson
Absolutely. I’d say it’s in the minority. It’s probably less than 25% of the time, but it happens frequently to franchises that I’m invested in. There’s one in Minneapolis that provides asphalt paving and line striping. So parking lots, they raised capital for that one. And, you know, I participated one in New York that provides temporary containment walls, like around renovation projects and construction sites.

00:16:15:08 – 00:16:34:21
Jon Ostenson
You know, these types of walls that go around this, you never think about until you until I mentioned them, that was one those were clients of ours. They wanted to take down all of Manhattan and go really big. And they brought in some investors. So it does happen for sure. Most oftentimes if you’re bringing in an outside capital, it’s probably more of a capital partner and an operating partner going in together a partnership.

00:16:34:22 – 00:16:52:02
Rod Khleif
Joint venture. Yeah. Joint venture kind of a thing. Okay. So what are some of your favorite businesses? You rep so many I don’t know, maybe maybe I’m putting you putting you on the spot here because you might piss off the ones you don’t mention. But I’m just curious if there’s some different verticals that you like more than others.

00:16:52:02 – 00:16:59:00
Rod Khleif
Or maybe you can coin it like this. These have been really more popular than others. Whatever works for your situation.

00:16:59:04 – 00:17:09:02
Jon Ostenson
Broadly speaking, I say home services and property services. We you know, I joke that non sexy is the new sexy when it comes to business ownership in these different niches that I, you know, aren’t going out of style. So again.

00:17:09:03 – 00:17:12:13
Rod Khleif
Give some examples. Yeah okay. Dumpsters, dumpsters.

00:17:12:17 – 00:17:38:21
Jon Ostenson
We’ve had clients do very well there. It’s, you know, artificial turf. I’ve done a couple of pool cleaning deals, restoration cabinetry. So it’s areas like that. But then you mentioned, you know certainly the senior space we’ve got this huge demographic that we need has a lot of needs. Right. So you know there’s everything from in-home senior care to fitness that’s focused on seniors to businesses even like acting as a real estate broker.

00:17:38:21 – 00:17:49:02
Jon Ostenson
But for senior facilities and kind of being that go between, you know, families are going through this process of placing a loved one, usually for the first time, and they need that expert and knows the market kind of guide them.

00:17:49:04 – 00:17:53:07
Rod Khleif
Kind of like a place for mom kind of a thing that that business. Okay. Got it.

00:17:53:13 – 00:18:19:23
Jon Ostenson
Similar model. Another one that our client, we have a client signing on for this one next week that provides wheelchair ramps and stair lifts and mobility solutions in the home, allowing people to age in place. So, you know, obviously people’s needs are going to change over time. They’re going to continue to need services like that. You know, I’d say the more fashion forward kind of sexy stuff would be like in the health and wellness space, you know, around longevity and peptides and recovery mode.

00:18:20:00 – 00:18:33:05
Rod Khleif
Yeah. Give me give me some give me some examples of what you’re seeing there. You’re seeing because that that I’m very interested in personally because I’m peptides like crazy. Vitamins like crazy, you know. So what what what sorts of businesses do you see in that environment?

00:18:33:08 – 00:18:35:00
Jon Ostenson
Do you know Gary Breccia, are you familiar with?

00:18:35:01 – 00:18:37:04
Rod Khleif
Of course, of course, John Gary.

00:18:37:05 – 00:18:49:10
Jon Ostenson
So this was all just kind of name drop here I was at his penthouse in Miami in December, when he signed an agreement to launch a franchise around his brand, around his business, and he partnered with Tony Robbins.

00:18:49:12 – 00:18:56:08
Rod Khleif
Oh, that one where they have a facility that’s got all the stuff in it. Got it. I know, I’ve seen that. Yeah. Okay. So that’s one of them. That’s a franchise.

00:18:56:08 – 00:19:15:21
Jon Ostenson
Interesting. That one’s grown incredibly fast, as you might imagine, with their social reach, you know, but we’re seeing a lot of interest in, again, in things that people never come to me with as an idea. And then I show it to them. It’s insurance adjusting and public public adjusting. It’s teen driving schools, you know, that’s required in 36 states.

00:19:15:22 – 00:19:30:10
Jon Ostenson
No one’s doing it well today right there. They’re these areas for disruption. It’s industrial hoses. It’s consulting with cost reduction, you know, strategies around for small and medium sized companies.

00:19:30:12 – 00:19:49:19
Jon Ostenson
You know certainly dog grooming. We’ve had clients do incredibly well with youth soccer. I always go back to what are people going to spend on regardless of the economy. It’s the things they care about their homes, their health, their aging parents, their kids, their pets. A lot of business.

00:19:49:21 – 00:20:11:06
Rod Khleif
There sure is. It’s exciting. You got me fired up. Going ready to go through a wall now I like I was telling you, I don’t know if I said this while we were recording or not. If there were two of me, one would absolutely be buying businesses. And I’m really thinking about bringing in an operating partner to help me locate, find, evaluate and take down businesses like I’m doing in, you know, multifamily and senior housing.

00:20:11:06 – 00:20:34:24
Rod Khleif
So yeah, that’s something I’m personally very interested in. But yeah. So guys, I just, you know, I wanted to bring this in because right now there’s incredible opportunity. There’s a lot of fear and but there’s incredible opportunity to, to to start businesses to get involved in businesses. And some of the largest, most successful businesses on the planet were started and founded in tougher times.

00:20:34:24 – 00:20:55:11
Rod Khleif
And, you know, because you got to work a little harder and they had to work a little harder. And I just, you know, I love having a conversation like this and talking about opportunity for you guys, you know, not just real estate, but but this as well. So if someone is interested in exploring what it is you do, where where would you send them?

00:20:55:11 – 00:20:56:17
Rod Khleif
John.

00:20:56:19 – 00:21:14:02
Jon Ostenson
First off, again, it’s entirely free to work with us. It’s a nice clean model, but come out to our website and Bridge consulting. Frank Bridge Consulting. Share your email address. What will then happen is you’ll be able to download our book Nonfood Franchising 90 page read. It’s going to help you connect the dots and understand the world of franchising.

00:21:14:03 – 00:21:24:06
Jon Ostenson
My assistant will also reach out to that email address and share a link to my calendar, so I’d be more than happy to jump on call with all of your listeners and help answer questions and guide them to, you.

00:21:24:06 – 00:21:46:08
Rod Khleif
Know, is there is there a place that somebody could study or look at all these different businesses that that you represent? Is there like a listing somewhere that talks about what the business is, what the initial costs are, what it does, and maybe what the success rate or how many, you know, stores, facilities, you know, locations they have things like that.

00:21:46:08 – 00:21:48:00
Rod Khleif
Is there is there a listing like that?

00:21:48:01 – 00:22:03:16
Jon Ostenson
There’s not a published list per se, and there’s two reasons for that. One, not every franchise is looking to expand in every market or in every state. Right. And then secondly, you know, oftentimes they’re sold out in a market, even if on the website it shows that they don’t have a presence yet. They’ve already sold the rights and they’re going to be opening.

00:22:03:16 – 00:22:25:24
Jon Ostenson
So there’s just a lot of noise out there. So we try to help our clients kind of cut through that and make it very streamlined for them and respect therapy. And with. So no, if you came to me rod and said, hey, you know, I’m looking to expand in Sarasota, Florida, we get to know each other. I would then come back to you with, hey, if I were in your shoes, here are the top 13, 14, 15 opportunities that I would be looking at because they’re looking to expand in your area.

00:22:26:00 – 00:22:38:15
Jon Ostenson
Based on what you shared with me, I think they could be a good fit based on what we’re seeing in the market. We see behind the curtains. I mean, I’m going to these conferences, I’m on the retreats, I know these franchisors. I know what’s going on. So I’m able to bring that intelligence into our clients.

00:22:38:17 – 00:23:05:15
Rod Khleif
Okay. Okay. Interesting. Very interesting. Well, listen, John, I really appreciate you coming on the show. I like I said, I’m intrigued and interested myself. I believe in this. I believe in business ownership and entrepreneurship, and I enjoy talking about it as much as I do real estate. So I really appreciate you coming on. And and yeah, guys, be thinking about how you’re going to take advantage of the incredible opportunities that are out there right now.

00:23:05:15 – 00:23:09:02
Rod Khleif
And this is definitely one option. So thanks, John.

00:23:09:04 – 00:23:10:07
Jon Ostenson
Thanks, Ryan.

00:23:10:09 – 00:23:13:20
Rod Khleif
Yeah. How do I stop recording? There it is.

00:23:13:21 – 00:23:16:09

Stop recording. Yeah.