The $60k Acquisition that Grew to a $77m Exit

And, and they were insightful and helpful and for us too, of saying, look, you guys got to change X, Y and Z and having us go back to the drawing board. And so we really monetized all those areas that we built up. And then we, we stepped back and said, okay, what else can we do in the markets that we're in and what other market should we be franchising?

And, and that's what led. And that was the pivot point where I'm like, okay, I, I want to go do this more in other industries like where. And that's when Jamie and I sat down and, and we talked about what the, what do our roles look like.

We, we had the, we, we did very well on selling those territories and supporting them. We had a business that was paying a royalty along with our corporate markets that was doing well. And, and then I, I rolled equity into, I kept some equity and then took some cash and went and started.

That's when really Sire Capital was created from, from that exchange.

Well, and I want to spend some time on that, Kevin, but before we get to that, can you explain this decision to so, so business is growing. You're, you're expanding further and further away from your core corporate markets, your home base, and in those far, those, you know, far flung territories, quality's going down. You're having quality control issues.

You decide to make the business a franchisor. But instead of selling new territories de novo territories, you basically sell as existing territories to local business people in those markets. So this is a case oftentimes searchers will, will see franchise Resales on the franchise, franchise resales on the market.

And sometimes those will be actually being sold by corporate. So corporate will have corporate owned locations that they, for whatever reason want to sell. That's what you guys were doing sort of at scale or not or all it all at once to solve the quality control issue.

Question is, why did that solve the quality control issue? Because these entrepreneurs are just now going to care more than some, than your kind of local employees did. Why did that solve the quality control?

Yeah, they, they were vested. They put a big chunk of their life savings. This is a business for them.

They left their jobs to buy these things and they're running them full time. And the first one we sold I knew was going to be the most important. So it was someone that I had known very well and I said, I need you to sit.

It was our Denver location, I need you to set up shop here. And he kind of set the tone and would help interview other people and teach them what to do. He became one of our most successful franchise awards and really our spokesperson for.