No SBA, No Investors: The Liquidity Access Line

So we were talking about, you know. You know, I think if there, if there ever. If there are a situation where I moved, you know, took a different direction and the business was on the market and it was going for even less than I paid for it, I would say, listen, the tuition that I have paid for in this experience is invaluable, and I truly mean that.

And that's part of the reason, I think the growing the business and the ETA is so rewarding because you can do the thing that we all think we're going to do, which is just take something and make it great, because we have ideas. But the journey along the way, that's a huge part of it as well, that I didn't expect.

We think of franchises as, first of all, larger businesses than this franchisor is. I assume this franchisor must have, you know, a handful of franchisees because a business like this is probably only in the major metro areas around the country.

Yeah, that's right. So there's, I think there's 11 active markets right now, and it is, you know, you need some, you need some minimum threshold of businesses of. Especially in the home services. That's really what the case studies that we have and the experience we can point to.

So, yeah, those, those big suburban areas around, around cities is, is really where you can find city publications.

Okay. And so, so this is a. But it is a franchisor still and all. How did you diligence?

How did you diligence? It does a business. I mean, it must have an fdd, even though it's really small. How big is the corporate office?

Give it, give us a picture. I mean, again, we think of franchisors as kind of big corporations, and this is not that.

Yeah, yeah, which I meant, like the, the, the access is, is really great. I'm, you know, tomorrow I'm going in and we're going to sit in the office with the CEO and we exchange ideas. So I've enjoyed that part of it.

Now the, the due diligence on the franchisor was very, was brief. Right. So I had legal review of the FDD in my franchise agreement. But the legal review was mostly is this a fair, does this, is this fair does according to industry standards, does the FDD meet all the obligations that an FDD needs to fulfill?

So what I didn't do necessarily, which I encourage people to do entering a franchise or relationship, is do some scenario planning. Ask them based on what you've seen. Let's say things go this way or they go this way.