Acquisitions Anonymous - #1 for business buying, selling and operating - Should you buy a swim school? - Acquisitions Anonymous episode 171

Episode Date: March 1, 2023

Michael Girdley (@chilis), Mills Snell (@thegeneralmills), and Bill D’Alessandro (@BillDA) review a swim school for sale.----Thanks to our sponsor!Acquira - your acquisition in a box service. Acquira offers training to help you find, evaluate, and close on a small business. All in under a year.    Their team has bought over 30 businesses across  3 different portfolios. Whether you’re just beginning your business search, actively pursuing a specific deal, or looking to grow your existing company, Acquira’s training and team of experts can help. Their M&A advisors provide individualized support through the entire process. They will provide guidance toward your offer structure, drafting your LOI, in-depth due diligence, and securing funding for your deal.  They will even fly out to the business with you.  Once you acquire a business, they can help you grow it too.Acquira’s ACE Framework will help you transition that business from owner-operated to management-led, increasing profits and allowing you to step away from the daily operations and enjoy doing more of what you love.  And if “more of what you love” is buying and growing more businesses, they can help you build a portfolio of businesses, and eventually get liquidity from that portfolio by selling it to a financial buyer, or selling it to its employees.Space is limited each month, so if you’re looking to acquire a cash-flowing business this year, sign up now at acquira.com/pod-lander----Additional episodes you might enjoy:#166 - A legal tech business doing $7mm a year#165 - Should we buy this airplane ad business?#164 - Annual Report Filing Software#163 - Make $2.3M/yr owning a Flight School#162 - Cleaning up crime scenes for big money!#161 - How to spot red flags in eCommerce listings?Subscribe to weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking here Do you love Acquanon and want to see our smiling faces? Subscribe to our Youtube channel. Do you enjoy our content? Rate our show! Follow us on Twitter @acquanon Learnings about small business acquisitions and operations. For inquiries or suggestions, email us at [e-mail]

All right, welcome to Acquisitions Anonymous. Michael here. We're back with another episode. Had a ton of fun today. Digging into a Swib School for young people, and it's actually a franchise to swim school. So talked about a bunch of stuff around that, dangers of dealing with landlords, dangers of dealing with little kids' lives, all that stuff came up. And it was fun.

The deal's not priced too badly. So maybe you'll like it, $1.7 million for sale and a great case study for us to dig into. So here is the episode. Today's sponsor is Acquira.com. And Acquira is your acquisition in a box service. They offer training to help you find, evaluate, and close on buying a small business, all usually done within a year. And their team has bought over 30 businesses across three different portfolios.

Whether you're just beginning your business search, actively pursuing a specific deal, or looking to grow your existing company, Acquiris training, and team of experts can help. Their M&A advisors provide individualized support throughout the entire process. They will provide guidance towards your offer structure, drafting your LOI, helping with due diligence planning, and securing funding for your deal. They will even fly out and do on-site visits with you as you look at the business to consider. Once you acquire your business, they can also help you grow as well. They use a proprietary framework called the ACE framework that will help you transition that business you buy from owner-operated to management-led, increasing your profits, and allow you

to step away from the daily operations, and enjoy more of what you love. And if more of what you love is buying and growing more businesses, they can help you build a portfolio businesses and eventually get liquidity from that portfolio by selling it to a financial buyer or selling it to your employees. They run cohorts each month, so space is limited. So if you're looking to acquire a cash flowing business this year, sign up now at Acquira.com slash pod-hyphen lander. And again, that's Acquira, A-C-Q-U-I-R-A dot com slash pod-hyphen lander, and tell them that the acquisitions Anonymous folks sent you. Welcome back to Acquisitions Anonymous.

We have a special secret for everybody on YouTube. We're wearing the exact same clothes as last week. Because we just finished recording. Shocker. You call it out. Michael, I don't think, I think only like a few people in our audience would actually pay attention

to this if you didn't highlight it every time. You did it last week too. Look, you know, it's funny. I got asked the other day, they're like, somebody's like, what's your LinkedIn strategy like for building stuff on LinkedIn

and I said strategy what do you think that people have a strategy and I was like look I'm just got to go on there and be a real person and be transparent and tell people what's going on

and I think the same thing applies here with the podcast people want to know what we're doing what's working what's not working you know yeah like

and you know what works we try to record four episodes a week over two hours and that means we're going to be wearing the same clothes for a lot of us

so I think the most you don't like it turn off the video I think the most genuine and authentic thing about the podcast is when we're trying to decide it happens every single time when we're trying to decide what deal to talk about because we decide that like 10 or eight seconds before we hit record we like if we get into it and we like the deal and we're

excited to talk about it gurdly or bill usually because they have more self-control to me is like stop stop stop we this this is the episode before the episode so that's how much fun we have doing this is that even if we weren't recording, we would be talking the exact same way about it. Stop, stop, stop. Hit record right now. Go, go, go. Well, in this particular deal, I got two strikes against me. One is I started doing the episode before we click record. The other one is I immediately went to, oh, here's why this one sucks. Gurley, hold your poop. The way the episodes are supposed to flow is talk about the deal, say some good things about the deal, poop on the deal, say how to make the deal happen.

That's how this is supposed to work. And then beg for growth, beg for people to give us a review. That's how the episodes work. So the problem is I keep skipping step one and two. So anyway, all right, who's going to read this one? And by the way, I am just so excited that we're doing a deal from a brokerage that's called Seller Force. It's like the whole of you.

That was going to be the first thing I said. You need to look on YouTube because this is awesome. Seller Force. Today's deal brought to you by the greatest brokerage ever, seller force. Where are these guys based? Let's see. I don't know. I'm not actually sure where they're based.

And I'm going to read the deal, but you guys can look up where they're based out of. But this is a seven-year franchise water safety school with an online lead generation system, easy to teach in transition, minimal advertising necessary. So this is a swim lesson school with a website. Yeah. And a franchise. So that brings in a whole another layer. the asking price is $1.8 million. Sales, which we don't really know, I'm guessing this is, you know, maybe 2022 or maybe it's the last 12 months, but sale, the revenue is $1.6 million. Their annual

profit is $518,000. Been around since 2015. They're asking a 3.4 times multiple, and you can fill out a form to get some more info. But there's a lot here. I'm going to just kind of try and hit some highlights. But this is, you know, a water safety school, they provide opportunities for students to learn how to swim, no matter the age. It's designed for all ages, all the way up to adults. They have revolutionary methods that help reduce drowning rates, which, I mean, you're basically selling into fear at this point. But they're fun lessons. They cater to the specific needs of each age group. And the franchise is the best and most effective program in teaching survival and swimming.

swim instructions with over 40 years of experience. They do private classes, small groups, adults as well as children. There's a lot here that's really repetitive, so I'm trying to kind of filter as I go. Typical customer is a family with an annual income of $70,000 or more that live within 10 minutes of the pool locations. Most of the students are between the ages of 2 and 13. Swim lessons are the top selling service and they account for the, quote, lion's share of the revenue. I love that phrase. Other services, and products like merchandise, special events, and open swim make up about 5% of total sales. The busiest months are spring and summer with a peak in July.

Business quiets down in December due to holidays and winter. I'm trying to figure out where this business actually is because it sounds like they have maybe even less seasonality than I would have thought. Yeah, more kind of selling into fear. Drowning is the leading cause of accidental death and swim lessons reduce the risk of drowning by 88%. Franchise model in which a business is

owned and operated by a franchisee, but allows a proven business model and brand guidelines. It can be successful and popular way to start a business in the swim instruction industry. Let's see. The company spends around $1,000 a month on Google and Facebook ads

and they say they're well established online with blowing reviews. Each location runs with a site supervisor and aquatics manager. So I think they're saying that in general about the franchise. This is probably just one location because I think they would be highlighting if they had multiple locations.

It's not clear if they own the pool, but I can't imagine that they own a pool. That would be incredibly expensive. So the way, if I can interrupt, the way these type businesses, at least here in Texas are put together is they are typically in a strip center. and the owner of the franchise has gone through and done some sort of deal to be able to afford to have an indoor pool. So it might be like a 2,000 square foot area

and there'll be 1,500 square feet of pools of varying kind of depths inside of these things. So actually, I mean, here in Texas, like you can do this stuff year round, but indoors, like, it's easy, like throughout the winter and all that kind of stuff. That's wild. Can you imagine the liability?

If I'm the landlord and somebody's like, hey, I want to put thousands of gallons of water inside the building. Yeah. Yeah, that's why they're in strip centers, single, typically single floor. They're not on the second floor,

which they're not. This is the point where I usually start pooping on the deal and I was like, okay, I'm just going to sit here until we talk about how great this is. So, well, what that means, though, is it's asset light, right? So you're basically going into someone else's pool

and teaching people to swim. They've got 33% profit margin. because I imagine they've got the only cogs is labor here, right? Paying the people to teach the swim lessons. So a lot, I mean, sometimes they're right businesses. You just scale by hiring more people and doing more marketing. I bet they are. I bet they are doing it in other people's pools.

I mean, maybe I've never heard of what you're talking about, Michael, which is, you know, typical of Texas, right? Because you guys do things different than everybody else. But like the way that these work here, I mean, it's 100% true. So how dare me is right. The way that this model works here is like, there's, community pools or rec pools or there's private, you know, like a church might have access to a pool in which you can become a member. And these people probably go and they, you know, cut some kind of deal

and pay a fee on a daily basis or on a per head basis. I've never seen, you know, small indoor pools inside of strip centers. I'm not saying it doesn't happen. Just I've never seen it in South Carolina or in the South Carolina. Here, let me show you this. I'll pull it up for those of you on YouTube. Like they're on, they're on, there's true. Where do you live, Michael? I have never seen this either. Yeah, this is in San Antonio. Here's one right here. I took my kid to this. It's called Aquatots.

You're like, I'm in here. Yeah, this is much better. Look, this is a ton better business. These guys, they rent out, and it's a facility. The parents can come chill. They do the little lessons. The way they haven't set up, there's a glass. So the moms or the dads can watch what's going on with the kid.

They have, my kids did this. It was a cute little program. Like, every time they were able to do something new, they get like a little sticker, like they gamified the whole thing. I mean, look at this little kid with the, with the cute little goggles on. How do you not want to be part of that business? I'm just thinking, though, this is incredibly expensive outfit. Like to build an in-ground pool in a place, I mean, that's, you're talking about a huge

amount of public. That's a reason to buy it. That's a barrier to entry. Yeah, right? Yes. I guess. Yeah. If you're doing it this way where you're set up in a retail location,

Like, that gives you some, a moat, right, in terms of being able to have a good location because you're the only one of these that's convenient for mom or dad running their kid to the, to the lessons, because you're going once a week, right? And you're not going to go travel an hour to save $4 on the lessons. So that's good. Anyway, I was about to go into something about how horrible it is dealing with the landlords of these businesses of these strip centers, but I'm saving that for the pooping part of the episode. Well, this is kind of similar to the indoor trampoline parks, which, like, we're not a thing,

you know, 10 years ago and now are in every like, you know, vacant grocery store, you know, facility. And I think that there's ways that these businesses can be run well and are sometimes run well. The franchise element of it, Bill, I feel like it's something you need to talk about more. But like as a parent with young kids, we have a membership. My wife might have signed like a 99 year commitment, but we paid $10 per kid per month and they can go every day to the trampoline park if they want to. And so, like, it pays for itself in one time. It's a really good rainy day activity. So, like, as a consumer, I get it. And my wife is, like, scared to death of, you know, something happens to our kids around water. And so they've all had swim lessons. But, like,

we had to go find a friend with a pool and then pay a person to meet us there. And so, like, the appeal of this, I'm not arguing with. I actually kind of like it because if you can go drop your kids off and you sit behind the glass and read a book or whatever, like, I think that there's a lot of appeal to that. You definitely have a situation where everybody wants their kid to be able to swim. There's actually, there's some people who have lost little kids from drowning and have made it their life's mission to get everybody able to swim. There's a billboard by my house that's been up for over 12 years. Some family has been paying for it for over 12 years because it was the, I mean, it's the saddest thing ever. You have a little tiny kid that drowns and like, like you, that lives with you

forever. And so these people have actually taken and made it their life's work to make more kids be able to swim. So like, like, you've got like tons of demand for this thing. Like you got, you have to love that. Like people really want it. Well, and kids need to learn to swim. Like it's, you know, you're actually helping people. Like it's not, you know, it's not bad. Like you're giving the parents a break. So are we, do we think this is like an aquatots where they've got a location? Or do we think this is like an asset light going to other people's locations? I think it might be like Aquitaz because at the bottom it says each location runs with a site supervisor and aquatics manager. Additional employees include those in human resources, part-time pool deck,

support staff, and swim instructors. I think they're operating pools. I think they got a couple, one or more locations. 100%. And I think you, I mean, there's a perfect reason why this is a franchiseed model, right? The franchise is perfect for it, which is like the government will do these SBA loans for people that want to buy into franchises. And that's perfect when it's, CapEx heavy like this because you got to go spend $2 million, sign a 10-year lease or a 15-year lease to have the pool in there, put in showers, all this different stuff, cameras to make sure the kids don't drown, and somebody's watching the place closely. And then somebody personally guarantees it. And it's like, okay, well, congratulations. You have an SBA loan. The landlord

loves it and the franchisor loves it because it suddenly becomes very CapEx light for them. So everybody wins. But yeah, this definitely has locations. That's where. I would say. So, like, if what's good about this is if this were just like asset light franchise, like teach you how to give swim lessons, I would go, what are you really getting here, you know, from the franchise. And they're going to franchise somebody else right next to you to come into the same pool, you know, on Tuesdays and Thursdays and give swim lessons.

And I would not like that as much. This starts to feel more like a fast food franchise, right? Like there's an upfront buildout cost. It's going to, it comes with probably a brand name. Like, let's take Aquatots. I don't know if this is Aquatots, you know, but they're doing some. national marketing to drum up hopefully, I mean, they better be, right? National marketing to drum up interest in swim lessons.

Aquatots now open in San Antonio, Texas, or wherever. And in theory, they're operating aquatots.com slash San Antonio. They're funneling leads to you. Maybe that's the proven online lead generation system. You know, they're telling you how to put a sign up. Like there's, in theory, some marketing support here from the franchise. Plus, of course, you know, a little bit of CYA because they give you all the processes, how to keep kids from drowning, you know, all that stuff.

I mean, I don't know how much it costs to sign a long lease and put an in-ground pool in. But you're buying this business here in the, the pool's in the ground already for three. Five times EBDA, right? Like this thing is cash flowing half a million dollars a year. Your only buildout cost here is the purchase price, which is $1.8 million. I would be really interested in comparing that to the replacement value of building again, however many aquatts they're operating. Well, allow me to pull up the aquatots franchise to

Disclosure document. Here we go. All right. I'll tell you right away. So it's one of the great things about Bill, you bring you this great point. If you are looking into getting into a business that is already franchised by somebody else, you can go to the franchise disclosure document because they are required by law in many states

to tell you all kinds of stuff, how much it costs, how much the average profit is all that kind of stuff. So to answer your question, tenant improvement and pool design is somewhere between 350,000 and $1.2 million. in terms of what people are paying for those two things. So the remote here is a lot of pools. So it's interesting. I would be interesting to see what the current value

over the life of the lease that they have remaining of these tenant improvements they did because there's a good chance the landlord, unless you have deep pockets forced you to come up with the cash to build those pools yourself. It would not surprise me if this swim lessons thing is paying for pretty close to the money they have in. Well, and also, I mean, they don't say anything about their lease, right?

But if you've got, if you're looking at this and you see that there's a year or two or even three years left on the lease, that's a big warning flag. Because in this case, the landlord probably has all the leverage. I had a landlord the other day. Tell me that he was having a problem with his tenant and it was a very specific destination and they were kind of known for selling this one item there. and he was like, look, I mean, the guy's just being a total, you know, paying in the rear. And I'm just going to tell them either you, you know, you fix your stuff and you start like, you know, doing what you're supposed to do under the terms of the lease. Or I'm going to put another one of those types of businesses in your location because, like, you're a destination. People are going to come there and still buy that thing, buy those things, whether it's your name or somebody else's name.

It makes me think of this. Like, if Aquatots closes down, right, in the location and the landlord wants to, get vicious. He could put somebody else in there and people probably still walking off the street because they're like, oh yeah, this is where, oh, it's not aquatata. I don't know. I don't care. Yeah. Okay. Can we go to the pooping part now? All right. Pooping begins. Okay. This is your favorite thing to poop on is the FDD and they're- No, no, no, no. No, no. No. Mills, I got to tell you, I've gone through a personal transformation recently recently and I've expanded the horizon of ways that I'm going to poop on deals because I'm a new

man, I turned 48 this year. Unlike you millennials, I have graduated to borderline boomer status. And now I have to act like one. So I will be doing that from here on out. Here's the thing I hate about this business. And the reason I don't want to own a daycare and I don't want to do in Aquitots is you know what happens at one of these places every year or so? There's a thousand of these type of little schools. Some little kid dies. And like, I don't want to be any part of that. Because you know who the other, the people that are working in a place like this, they're like teenage idiots. No offense to teenage idiots,

but like they don't have good judgment. Their brains aren't done developing, and that's the only people you can get that are going to teach little kids swim lessons. And like, there are just better ways to sleep at night than having to worry about if your staff is going to screw up and somebody's kids going to die. So like that's why drowning can happen in like two minutes

and the little kid's dead. And so to me that's like, you know, Shark Tank, I'm out. Right. So, yeah, so you're out. That was the same reason you're out on the daycares. We tweeted the daycare episode, like a few weeks ago. And my friend Maytab replies and he goes, too hard for me, I don't want to be responsible if some kid eats 200 pounds of jello and explodes.

And I was like, what? Yeah. Maytow's weird. Except for the fact Mettau, for some reason, Twitter strategies to delete all of his tweets in like 30 minutes. Have you noticed this? It's like, what are you doing? Like, if you want to catch the music and you got to be glued to the feed.

He's like, I meant to have, I just can't stand by Twitter all the time waiting for you to post and read it immediately. Why don't you just leave them up for a few hours so I can keep up with your thoughts? You got to turn on the notification. You hit the little bell, so it texts you every time he tweets. Wait, you're telling me you don't do that for my tweets, Michael? I have a special list that is only Bill Delisandro tweets, actually. It's the first thing I check each morning when I wake up. I roll over and I say, honey, can't kiss you good morning.

I got to check and see what Bill tweeted overnight. You hear that, guys? Secret to Michael Garley's success. Learn from the master. Never divorced once. All right, so you don't like it because you might kill a kid. Is there any, if assuming you could get comfortable with the risk that that might happen, is there other reasons to not like this?

Look, I think, I think the big problem with retail like this to really worry about is precisely what we're talking about. like you go in, you pay a million dollars to build a pool inside of some strip center. The landlord can look at these franchise disclosure documents as well. And guess what? They're not looking at the low side numbers. They'll be looking at the high side numbers. And basically at the end of your lease, they're going to look up and say, you know what,

it is kind of hard for you to pick up and move an entire location, meaning 40,000 gallons of water in a hole that you've created in my strip center to another place. So I am going to figure out, I'm going to ask you to show me all my financials. I'm going to hammer you on the lease. You are going to pay almost every part of your profit to me in order to keep there, and I'm going to push you right to the edge. And I think that's my big worry here is like all location, location. How do you protect yourself from that renewal stuff? And back to Mills Point as well. What's the same dilemma for restaurants and they're up with it? Like new restaurants help gentrify certain areas of town. They get in when there's low rent.

And all of a sudden, like 10 years later, when the lease is up for renewal, the whole area, is really cool and hip and like the landlord has all of the pricing power at that point. And you know, you've built out the kitchen. What are you going to go to? Spend a million bucks somewhere else putting in a hood and a grease trap and all kinds of stuff and lose all your customers. Like it's about where you sit in the value chain. And I think this one's kind of tricky. I think to me, I actually would rather it be asset light. Like there's, I don't know if it's a franchise or not, but there's a business called soccer shots where they like will go. after school and like teach soccer lessons.

Like to me it's a little bit less risk, like you're not dealing with water. You just get a bunch of, you know, whatever you said, Michael, like idiot teenagers, but they can they can teach kids how to like dribble the soccer ball. And parents are looking for something for their kids to do after school. And there's kind of a reoccurring nature to their revenue. I think I like the asset like better.

I don't know. It's just, I don't know. For some reason, I don't like this for a handful of reasons. So an interesting thing about the Aquatots website, they say most of their growth of new locations is from existing franchisees. And I think when you're going to buy a franchise, you want to understand why are none of the other franchisers or franchisees interested in buying this one. Because if they're making money, like they know how to do it. Like it's basically just growth for them. So like I would, as I dig into this, I would understand why are the other franchisees not buying this one?

because it's kind of scary to see it publicly listed like this. Because usually the good ones, like, when was the last time we saw a McDonald's posted publicly on biz by sell? Like it doesn't happen. Like, that's scary to me about this as well. Anyway, I'll shut up now. Go ahead, Bill. When you think about like businesses like this with what we'll call kind of landlord risk,

right, where when the lease is up, the landlord has you over a barrel. I mean, so what, right? Like, it's very defeatist to say, okay, well, that sucks. Like these businesses are not transactable. But these businesses transact all the time, right? People buy real estate to businesses, dependent businesses all the time. Like that doesn't make these things non-transactable. So how do you think about, you know, why is that?

Like, how do you structure a transaction? Why would someone even open Aquitad's franchise if they knew that the terminal value after 15 years was zero? Like, why do these businesses even exist if eventually the landlord kneecaps you? Well, you make a lot of money for 15 years. That's the short answer. One of my mentor says, because all the fools ain't dead. And, you know, I don't, I don't know.

I mean, I've known plenty of people who have made, you know, certain business models, franchise business models, food service business models work really, really well. And I would never do it. But also, I think there's a lot of people who get in, I've also known people who've sold, you know, like better burger franchises and the people who buy them, like they shut down relatively quickly because I don't know. It's just, I don't, I don't, I don't, I don't, I understand what you're saying, Bill, but I don't think that that validates.

Just because people do the deals doesn't mean that there's a reason that they do them or a compelling reason that they do them, you know? Well, I mean, Gurley made a point, right? You make a lot of money for 15 years until the lease is up. Yeah. Well, that's actually like, you underwrite it. It's, yeah, you just have a terminal value of, oh. Of zero, right?

You just say like, if you just say like basically the terminal, and that's why you would open on these franchises, right? If you go, you can model it out. You know what your upfront cost is. You know, after 15 years, your leases up and, you know, the business is not worth anything. You just close the doors and hand the keys of the landlord. It's still possible for that financial model of work. You know, if you're a million bucks up front and you make a million bucks a year for 15 years,

this is a freaking great trade, right? I'll do that all day long, even if the terminal value is zero. If you look at it, like you go look at Dutch brothers, some of the scooters, like in the coffee business or in like the burger business or any of the franchise business, there are people like there are systems like Dutch brothers, for example, like they go in, they pay top dollar for a premium location. They build a million to a million and a half dollar building on it. And then they, so they take that they take that whole package. They put it out there on the market as a lease back and say, hey, we'll pay you a four cap or a five cap. on the thing, like a 4-CAP being a 4% return on the total value of the thing and get their money out of it. Well, that's fine, except for 15 years from now if you're a long-term thinker, that landlord's going to be back renegotiating with you and you're potentially not going to get such a sweet deal anymore, which is different than, like, say, a long-term thinking franchise like McDonald's or Chick-fil-A where they own the real estate, they own the buildings,

and like they're playing a hundred-year game as opposed to the, you know, the churn and burn game that you can play if you're a publicly traded company like Dutch Brothers is. So anyway, it's just like a very interesting kind of scenario, but you're setting yourself up for what kind of game you want to play, I think. And in this case, like, you got to play a 10-year game or a seven-year game or a five-year game in terms of, you know, that terminal value. All right. So I think it depends a lot on how much is left on the lease, basically how much money

you think you can make until this lease is up as compared to the purchase price. because if that trade works, this might be a great deal. Totally could. I mean, but it does come back to something we say all the time. Just because you're buying a franchise or buying into a franchise system, you need to go into it just like you're starting a brand new business. Like it's not like somebody's magically figured out all this stuff. Like there are a ton of ways you can lose a ton of money,

just like Mills's friends did, getting into the franchisee type situation. For every McDonald's that's out there, there's a bunch of crap like this that buyer beware. You know, could be good, could be bad. go into it with your eyes open. Cool. All right. So structuring, who should buy this deal? Like, I'm like, for me, it's like, why isn't somebody that already owns another one of these franchises in the next town over?

Why aren't they buying it? That's the first question I would ask when I go look at the steel. Like, the obvious buyer passed. Why did the obvious buyer pass? Yeah, I think that's a good point. It's kind of like Chick-fil-A, like, you know, the operators that I know, you know, they get first-righted refusal on any new ones. And so it's like, how is it that any new entrant actually comes in?

it just should reinforce the top performers. I think there was a franchise we looked at like that at some point. It was like, well, why aren't the people around you buying it? It was not even an open one. It was just the rights. I think that was the one where the guy was selling the rights and he owned another one of them in the next town over and didn't want to develop his town. Like, oh, like that's bad news.

I think that was smashed my trash. It was. It was. It was. right, Tras? Yes. Man. Yeah, that deal was so bad it made you want to go get smashed.

Yeah, that was your dad joke for today. You're welcome. All right, we'll wrap it up there. Look, if you enjoyed this episode, please take a moment, pick a friend, text them and say, listen to this podcast. Send a link to the episode or any of the episodes you found more interesting and say, hey, check these guys out. They're doing something good.

It's a great way to learn business because we do these case studies every week, and we really enjoy them. Do that for us as a favor, and we'll catch you next time.