DiscoverFranchise Secrets PodcastHow Franchisors Really Make (or Miss) Millions in an Exit
How Franchisors Really Make (or Miss) Millions in an Exit

How Franchisors Really Make (or Miss) Millions in an Exit

Update: 2025-07-15
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Thinking of selling your franchise brand someday? Don’t do it until you hear this. 

 

Investment banker J. Patrick Galleher from Boxwood Partners joins Franchise Secrets to break down the real mechanics behind franchise exits, private equity deals, and what makes a brand worth $100M—or not.

 

We cover:

 

-Why “vanity metrics” like territories sold can hurt your valuation

-What smart franchisors do differently to attract premium buyers

-The truth behind 20x multiples (and why most never get close)

-How to avoid common mistakes that kill enterprise value

-When to step aside as founder—and when to double down

-This is the episode every franchisor needs to hear before scaling or exiting.

 

👉 Join the Franchise Secrets Facebook group: franchisesecrets.com/facebook

👉 Learn more about the Franchisor Mastermind: scalablefranchise.com

 

⏱️ Timestamps:

00:00 – Why some founders thrive after selling… and others don’t

01:22 – Pat Gallagher’s background in franchise M&A

03:00 – How to tell if your franchisor is giving you the full truth

06:47 – The real story behind those $100M franchise exits

08:30 – Second bite of the apple: how founders cash in twice

09:48 – Vanity metrics vs real enterprise value

12:00 – How to avoid a stale “snow” pipeline

13:57 – Why unit-level economics matter more than hype

17:39 – The hidden ways franchisors protect their Item 19

24:52 – When founders should step aside—and how to find the right buyer

29:42 – The truth about 20x multiples (and what it really means)

 

Connect with Erik Van Horn:

🌐 Website - https://franchisesecrets.com/   

📷 Instagram - https://www.instagram.com/erikvanhorn/  

👍 Facebook - https://www.facebook.com/erik.v.horn/  

💼 LinkedIn - https://www.linkedin.com/in/evanhorn/ 

 

Best Franchise Starter Playlist:

https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm

https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf

https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL

 

#FranchiseExits #FranchisorTips #PrivateEquityTruth

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How Franchisors Really Make (or Miss) Millions in an Exit

How Franchisors Really Make (or Miss) Millions in an Exit