Acquisitions Anonymous - #1 for business buying, selling and operating - The “Best Business Ever”? A $6.5M Day Spa Franchise in Dallas

Episode Date: March 24, 2026

In this episode the hosts analyze a $6.5M two-location luxury day spa franchise in Dallas, debating whether its 20-year track record and $1.4M EBITDA make it a rare franchise opportunity—or just unusually enthusiastic broker marketing.Business Listing – https://www.bizbuysell.com/business-opportunity/two-location-luxury-franchised-day-spa/2459661/Welcome to Acquisitions Anonymous – the #1 podcast for small business M&A. Every week, we break down businesses for sale and talk about buying, operating, and growing them.Looking to build a professional website in minutes? Try Wix: https://wix.pxf.io/c/6898629/3115214/25616?trafcat=templateHubSpot is the backbone for how businesses scale without chaos. Try them out here: https://go.try-hubspot.com/OeG9Vr💰 Sponsored by:Viso Business Capital — Get the right SBA loan tailored to your acquisition needs with Heather Endresen’s firm. Sign up for a free live Q&A on SBA loans at https://www.visocap.net and click “Zoom Sign Up” in the top-right corner.FRANZY - Thinking about buying a franchise instead of an independent business? FRANZY is a free platform built for acquisition-minded entrepreneurs who want to explore franchise ownership without broker bias. FRANZY matches you with franchise opportunities based on your capital, goals, and lifestyle—and includes free coaching from experienced franchise operators. If you're exploring ETA but want a structured, system-driven alternative, check out https://franzy.com/In this episode, the hosts examine a two-location luxury day spa franchise in the Dallas–Fort Worth area listed for $6.5M. The business generates roughly $6.4M in annual revenue and about $1.4M in EBITDA, giving it a valuation around 4.6–4.8× earnings—a multiple that seems reasonable for a stable franchise with two decades of operating history.Key Highlights- $6.5M asking price for a two-location luxury day spa franchise in Dallas generating $1.4M EBITDA.- Massive locations with 41 treatment rooms and ~70 employees across both spas.- Business has 20 years of operating history, one of the longest-tenured franchise deals reviewed on the show.- Key diligence items include lease terms, labor model, and recurring membership revenue.- Debate around franchise deal dynamics: outsiders may need to overpay versus existing franchisees.Subscribe to  weekly our Newsletter and get curated deals in your inboxAdvertise with us by clicking hereDo 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]

Welcome to another episode of Acquisitions Anonymous. I'm Connor Gross. I joined the crew today. We talked about a two-unit massage business down in Dallas, Texas, that area. Really, really interesting. We had some interesting thoughts. One of the more bizarre notes we've seen from a broker in a long time. One of the most extreme real estate footprints we've seen in a business like this in quite a long time.

And also, very, very long tenure in this franchise and that folks had owned it for a very long time. So there was a lot to like about the deal, but also a really good conversation about the industry at large and things that we would look for. I get to join the team when we talk about franchises. So I help people find franchises. So if you like what you hear, feel free to reach out to me and I can help you if you're interested in getting into the franchise game. But regardless, stick around to the end of the episode. And we will see you there. Hello, another episode of Acquisitions Anonymous.

We don't have 100% years anymore. And thumbs downing on just the plus inventory. Hi Heather here. When I'm not breaking down deals with these guys, I'm helping people get the right SBA loans for their business acquisitions. Because when you're buying a business, the best financing isn't one size fits all. There's the best rate, fastest to close, the specific loan structure that you need, or a little of all of those things. That's why my company, Vizzo Business Capital, works with over 30 different lenders to find you the best funding in less time and with less friction so you can focus on the deal. Sign up for a free live Q&A session on SBA.

loans at visocap.net, then click Zoom sign up in the top right corner. That's V-I-S-O-C-A-P.net and click Zoom sign up. All right. Let's do it, Michael. DJ, let's go. We're recording. Oh, what are you recording? Yay. Michael, you sneaked in the record button while we're paying attention. I'm very snuckie. Yep. All right. Well, now that we're recording, Let's talk about the elephant in the room, or should I say the beard in the room? It is getting substantially full. And I'm impressed. Yeah, it's getting shaved in a couple weeks because I'm having a, I have to, I'm having a surgery on my jaw.

And I have to shave it. So I'm grown it out for a while. And then, yeah, I will be back to looking 13 again afterwards. So I'm enjoying it while I have it. Well, we always have to have someone with a beard on the show. So Mills is not here, so I'm glad you're here to fill the beard quotient. Are we going to equate the beards? We can talk about that since Mills isn't here, but I think my beard game stronger.

I think I might agree. Sorry, Mills. I love having a beard because I think I look so much better with it, and then my wife absolutely hates it. She won't say it. She's so sweet, but she's like, I don't like your beard. Like, okay, I'll shave it. Thanks, buddy. I have a theory that women like to look at beards, but do not like to.

to be up close and personal with beards. Right. And so, like, women like beards abstractly, but when their mate grows a beard, they do not like it. It's very scratchy. I've gotten feedback. I'm not married, but I've gotten feedback from lady friends on both sides of the equation about how, like, it's, you can be either clean-shaven and have it a little bit long,

so it's not like, you know, does it feel like sandpaper? But it's the halfway point, the stubble, that I actually really like that look. but apparently that irritates some people's skin. I believe that. So anyway, luxury franchise day spa. That's a great segue. Because, Connor, if you were married,

your wife would need a luxury franchise day spa to go to the franchise day spa. She would. And we'll see if that would be as a consumer or as a franchisee based on what we think about it. So, two location, luxury franchise day spa. The asking price is $6.5 million. The gross revenue is about 6.4 million with about 1.4 million of EBIDA and SDE, which they have the same for both because EBITDA and SG is the same thing, right?

I don't know. I'm going to cash flow, right? Okay. Maybe in this business, in fairness, because it's almost no cap X. It's like a service business. Probably close. Yeah. We'll see.

So this opportunity features two well-established independently owned franchise day spas located in upscale retail centers and supported by strong local economy. Each spa offers a range of highly sought after luxury services, including massages, facials, and other premium treatments. As part of a rapidly growing national franchise, the spa carefully curates every aspect of the guest experience from a signature scent diffused through the space to highly personalized service and care. Both locations are operated by a strong on-site management team under an absentee ownership model, allowing owners to focus on strategic oversight rather than daily operations. At the strategic level, ownership remains involved in the high-impact initiatives such as pricing strategy, commission, and incentive programs, market research, and new service or brand launches. Recruiting, bookkeeping, payroll, and marketing are outsourced, further allowing the ownership team to focus exclusively on oversight. As the current owners approach their 20th anniversary as franchisees, they are preparing to pursue the next business venture and believe this represents a compelling opportunity for a new owner to step into a proven platform and continue to grow. expand within the DFW market. It is in Dallas. I left that out. So the inventory, $50,000,

not included in the asking price, $25,000 of FF&E, 70 full-time employees across both locations. Wow. That is a lot of full-time employees. First location features over 6,700 square feet with 22 treatment rooms. This location also includes over 2,000 square feet of unused space that can be used for expansion. Meanwhile, the second spa operates in a 5,100 square foot facility with 19 treatment rooms. Both spas have been renovated recently, and all assets are necessary for day-to-day operations. All assets will be included in the sale to ensure a seamless ownership transition. Yeah, so seller financing is available. 10% of required by the lender, buyer down payment about 800K. At closing, the buyer will need to complete the franchisors, the franchise discovery day,

an onboarding training. Yeah, in Collin County, Texas, so in the DFW area. This is interesting. So, Connor, you skip over my favorite part of the listing now. Yeah, you got to go. You buried the lead, Connor. You got to go back to the broker commentary.

Please, read that. From Sigma, the business broker, Sigma murders and acquisitions. In our 24 years at Sigma, we've represented hundreds of businesses, and it's not an overstatement to say that this spa has the best characteristics we've ever seen in a business for sale. Opportunities like this simply don't come to market. They're typically passed down to family members and not listed publicly. This is a unicorn opportunity and we expect it to move quickly once the right buyer understands what they are looking at.

If you're serious about acquiring an exceptional business with proof of performance and rock solid fundamentals, see below about how to move quickly. Either this broker really means it or is just mortgaging their credibility. and flush it all down the toilet. That is the strongest statement I have ever heard. Well, my initial reaction was, what kind of dog shit is Scott Cotcroft typically representing that this is the best deal he's ever seen? Like, I want to see the other TLC selling.

It's the back... Oh, he's right there on the listing. He's right here. He's right here. Yeah, I'm just saying it would be interesting to look at the other listings and see, like, what's our benchmark that this is the best? Okay.

Yeah. This is what else Scott has got. He's got an industrial salt distributor and animal nutrition supply. He's got a DFW commercial network infrastructure provider. I would not say this is dog shit at all. So maybe Scott really thinks this. Yeah. Or wait, wait, wait, wait, wait, wait, wait, wait, click on the other listings and see if he has the same paragraph in this.

Okay, yeah, we got it. We got it. Okay, here we go. See if he says that about every deal. All right, this is the industrial salt distributor. No, he does. He does not. No.

He does not say. that. So maybe this is truly the best deal that Scott Cockcroft has literally ever seen in 24 years of business brokering. Either that or it's owned by Scott's sister-in-law. Very possible. There's some things to like about this. I mean, if it checks out that, first of all, they've been around for 20 years, 20 years in business, it says the owners are absentee. Obviously, you know, we'll take that for what it's worth. But I, really like the volume here of both revenue and cash flow that they're driving from two locations. And a lot of comparable franchise systems in the industry to get $1.4 million of EBITDA.

You would need, you know, five locations or more to do that. And there's a lot to like here. Well, Connor, these are big. They're 6,000 square foot locations, right? I mean, that's very big for a massage place. and, you know, a lot of employees within each one. But, you know, if you have the option that you could have seven locations with 10 employees in each or two locations with 70 employees total, like I would take the latter because it's just you're driving

more cash flow out of a smaller number of four walls. Oh, yeah. This is not a med spa. This is a day spa. This is a day. So this would be, again, we don't know. This is actually synonymous. We don't know which franchise this is, but this would be like a massage envy or like a hand in stone or something like that, right?

To make it tangible for people. Like that's what this is. You go get a massage, you get a foot rub, you get a facial, stuff like that. Yeah, and I've seen these that when they're that big, they tend to call it like a wellness retreat or something, you know, where it's not like just a massage parlor, quote unquote. But that's probably what this is. that is a lot of real estate. Do you think this is one of the like the kind of mass market ones

like the Hand and Stones and the Massage Envies or do you think this is something more boutiquey that has this different larger format that might not be as mass market? It's a really good question. I don't know, considering they've been around for 20 years, that would lead me to believe it was one of the legacy brands,

but I don't think Handin Stone has locations that big. I'm trying to check, but Handenstone footprint, Yeah, I mean, this is, I mean, it's been around for 20 years. It's super scaled. There's only two of them, and they're both in the DFW market. So it's not like you've got to be back and forth between two cities. You can probably share staff maybe, even between locations. Absolutely.

I mean, I'm not going to go as far as Scott to say this is the best business I've ever seen, but it does seem pretty solid. It's, yeah. This is the longest ten-yeared franchise I think we've ever looked at 20-year. like established for these people's franchisees. Connor, I got a question. To Michael's point about this being a 20-year, two-location, rock-solid member of a national franchise. Why in the world does Scott Cockcroft have this listing?

Why does this franchise owner, you would think they'd have, I mean, they're not the only hand in stones or massage enemies or whatever in DFW. Why does every other franchisee in their market not want to buy this immediate? I mean, that's the first question that they should be asking. You know, few possibilities. It could be that just nobody has $6.5 million of capital available to them. If it's a brand that performs, you know, on par with how this one does, that would be surprising because you would think people would have that amount of free cash flow, but it doesn't always

mean that it's the case. This also could be a situation where it's the half-court heave. you know, where they know what the franchisees will pay, they're trying to list it publicly to see if they can get a higher valuation from somebody who's trying to break into a healthy system. And that is the challenge, the fundamental challenge, with acquiring an existing franchise when you're not already a franchisee, is a lot of times you do have to pay a premium over what a franchisee would pay.

And so this may be them testing the waters to see what kind of a premium is an outsider who wants to get their foot in the door willing to pay. but I mean it also there could be you know something more more challenging where you know people aren't bullish on the brand I just can't imagine if they're performing this well understanding that's over 20 years of an operating track record I just can't see this being an exception you know where they're doing well and everyone else isn't so those are my thoughts this is a almost five times deal they want 4.8 times for this which is a little high, but it's not like comically expensive, right? Not at all. Connor, I want to go back to what you just said about how if you're trying to buy into a successful system, sometimes you have to overpay. Let's say that's the role that our listener who's interested in this deal is in.

They don't own, you know, existing day spa massage concept. They want to own one and they think this is a great opportunity to get into massage envy or whatever it is. How does the game theory work? Because to me, if I come in and I go, I'll pay, 6.5. As soon as I say I'll pay 6.5, they turn around to the other franchisee that they've been talking to and go, I have another bid at 6.5. You pay me 6.5 and it's cheaper for you because you have synergies and all the stuff and I lose. Right. So all I've done is validated the market and

let the seller make more and I still lose. If that doesn't happen, the best case, I've kind of pay to premium. If I come in below and I bid six, then I'm probably getting closer to where the existing bids are from the, like, how can I actually buy this? It seems like it just gets flipped to an existing franchisee almost no matter how I play it. That's exactly right. And yeah, you either have to overpay to command that, which is, which, you know, isn't always, isn't a good idea a lot of times, because to your earlier point, it's like you're, you're trying to outbid the people who know the business better than you do. Yes, and who are in a better position to create value than you are, which is like a very, very challenging position to compete in. And so, you know,

that's why my approach is to do what I call planting your flag, which is, you know, buy new territories, get your foot in the door on the inside, and then grow through acquisition, which you're already there, and the ones that you're back rather than coming at you at 90 miles an hour from your front. So you're basically saying it's, you will quote unquote, overpay less by greenfielding one first, which is probably more expensive and takes you longer and there's downsides to that too, but that's less expensive than paying through the nose for something existing as a way to get your foot in the door. 100%. Because then, you know, you're on the inside. The deal sourcing is so much more straightforward because you have the network with people.

The diligence is more straightforward because, you know, again, you've operated the same business under the same brand name. The integration after you buy it is so much more straightforward. the other businesses they're operating under the same tech stack, the same vendors, the same branding, like all of that. It makes it a lot easier when you're on the inside. But the same things that make it easier or simpler as a better word when you're on the inside make it really challenging when you're on the outside. And so the trap that I see searchers falling into when they try to combine DTA and franchising is sometimes, frankly, they just end up in crappy franchises because that's just by default where they can find a deal. And that is the reality. It's like,

you are going to get into franchising, do not compromise the quality of the brand for the sake of deal economics. Because even if you get good deal economics in a bad franchise, it's still a dead end. Yep. One of the biggest risks in entrepreneurship through acquisition is buying a business with fragile systems. Unclear demand are a single owner who holds all the knowledge. Franchising approaches that problem differently. You are buying into an established brand with documented systems, unit level data, and repeatable operating playbooks. The hard part is knowing which franchises are actually worth evaluating. That's why Alex Moresniak, former CEO of 2-U-Londry, built Franzy. Franzy is a free platform that helps acquisition-minded entrepreneurs explore franchise

ownership without broker bias. You answer a few questions, and Franzy shows you franchise opportunities that align with your capital, lifestyle, and long-term goals. You also get free coaching from people who have actually built and scaled franchise businesses. If you are exploring ETA and want to understand whether franchising fits your acquisition strategy, visit franzy.com. That's F-R-A-N-Z-Y.com. And thanks to them for sponsoring today's out. episode. So what, what is it like to be on the inside? So like, let's just say this massage envy. Let's say I've got one, I'm a relatively small time. I've followed your advice two years ago. I opened my own massage envy. I'm in the Dallas market. This comes for sale. What does it feel like

to be on the inside? Is there like a chat room? Like, do they do I meet the other Dallas operators, you know, in a smoky back room at a bar? Like, is it a national conference? Like, what? Why? I like how does it actually feel to be on the inside of a franchise system and like be getting this deal off market before it hits biz by sell? Like how do I hear about it? How do I really, how does it really work in practice? Yeah. I don't know if you guys were in fraternities in college, but that's kind of a parallel that I draw, which is where like you have like a big group of people who you're, yes, you're in, you know, you're in, um, on message boards with and you communicate, you know, in a group context, you go to conferences, you're on calls together and

stuff with a very big group. But then everybody develops. their smaller circle of people. You know, I have probably five guys that I talk with, you know, on a, on a weekly basis that are just my smaller circle within that system. So that's kind of how it works. But the point is, is like you're developing relationships with these people very organically as you're growing your businesses together. So it's not like you're explicitly building that relationship to buy their business

from there one day. That just happens very naturally so that when they decide that they want to sell, a lot of times if you're trying to be acquisitive and you've been public about that, people know, and you can be the first call that people make. Just being loud about it, like if you're in a franchise system and making it known that you want to buy one. Yes. Yeah. And I mean, people are going to know. If you start to buy one, then you're going to start to get people reaching out to you directly. And then a lot of times people reach out to the franchisor when they want to get out. And the franchisor will say, okay, this is somebody who's acquiring. Go talk to them if you're in

good standing what the franchise were. So yeah, like that's one thing in this context that I would really want to understand is like what are the circumstances surrounding, you know, the franchise network? And is this something that would, is this a brand that I'm bullish on in general, you know, to reach whatever my goals are, whether that is to own one thing and be relatively hands off or it to really scale into other markets? It's you, you would just, regardless of how the deal economics look, you would just really want to zero in on that before moving on something like this. At Holdko conference last week, I was talking to a guy who had gotten into a franchise system, bought a trampoline franchise park. I know we've talked about these Connor and the trampoline parks

were all deathly scared of them because we've all watched the videos on the internet of kids breaking their legs over and over again. But basically, this guy has rolled up like 26 trampoline parks across the United States. He started with one and he basically became the guy that the franchisor started to call every time there was a struggling franchisee. They're like, we'll call Bob. Bob knows how to fix these things. And Bob just went in there and I said, well, what did Bob do? Turned out Bob just used first principles on everything. Like, hey, guys, you know what we're going to do this month? We're going to turn on the sign. We're going to make sure that the sign is on at night. Hey, you know what we're going to do this week, guys? We're going to make sure we finish the month with more

money than we started with. Like just like Bob was not doing anything really complex, which was a testament. I think, well, how low the bar is, I guess, with, with some of these trampoline parks. But it was interesting Bob had become the guy in the system. They knew to call when there was a struggling franchisee. Exactly. And Bob, you know, he knows the dials that need to be turned right off the bat. And so you think about the, the ability that he has to create value very quickly and to be more aggressive, you know, and take on something that's distressed or just that's subscale. because he knows he'll be able to turn it around very quickly. I know people that have made a killing, acquiring, distressed franchises when they are a franchisee, but that would be a very poor starting point, you know. But this one's not distressed. I mean, this one is an established like cash generative asset. So, you know, we can talk about the franchise aspect of this, but what do you all think about the industry at large?

Like, would you, what do you think? Yeah, that's where I was going to ask you guys, what you thought about headwinds versus tail winds, right? Aging population, increasingly wealthier, wanting to do experiences over, you know, over owning things. Like, it feels like there's still a ton of tailwinds in this market. And I was just trying to think, I was like, is that going to change? And I don't think so. It's not like we're making houses any cheaper or vacations any cheaper. This reminds you of Brent B. Shores, kind of tongue-in-cheek thing about his pool company. Like, as long as people enjoy dipping their bodies in water for pleasure, like, we're going to have a business.

I feel like this is exactly, like, as long as people enjoy getting backrubs, like, we're going to have a business. You know, this is like a basic, this is not going to get AI disrupted, I don't think. Yeah. Yeah. My concern with massages has always just been the labor model. It's like you can't, it's not scalable at all. You know, you have one employee serving one customer at a time. But if you're acquiring something, and like 70 employees is a lot of employees, obviously. But if you're acquiring something that's been in business for 20 years, they don't really, speak to the tenure of their team, but that would make me a lot more comfortable with this, given that I think about labor as the main bottleneck, labor and real estate and something like this. Interesting. So these people are all W-2s?

That's what it looks like. And they said full-time, which is surprising. That can't be. I don't think it is. I think this is, what's our guy, Scott Krocroff. I didn't want to mispronounce that. I can't see it. Okay. Yeah, I think that might be that might be a mistake because 70 employees full-time, if they're making 60 grand a year, what is that? That would be, like, that would be $4.2 million in payroll. That's not right. So, yeah, they're probably part-time,

and that would make sense with what I've seen in the industry in general. But yeah, I mean, I would want to know how much of that revenue is recurring versus one time. I think that would be important. Yeah, the longevity of the, of the team and how that's gone. And then obviously the lease terms are going to be important in something like this. But if the numbers all check out and the owners truly are absentee,

the reason that the owners being quote unquote absentee gives me comfort is not because I would expect to be absentee. But that typically is representative that they have a more thoroughly built out team, you know, with management in place so that, you know, the owners are not already, that owners are not running it leaner because they're more involved. So it just makes me more confident in that EBITO number overall. Dallas is a good market to be in for this stuff. Plano, like there's just Dallas keeps winning more and more in the United States.

It's got so much going for it. So you've got to like that too. Just demographic tailwinds, people moving there, et cetera. Yeah. So headquarters, Toyota, everybody, Goldman So, Goldman Sox. And then there's like, I don't know if you ever heard of this bill, but like, I think it's Deloitte has like one of the largest educational campuses in the world, like in Dallas. Have you ever heard of this?

No. No, like their whole. So I hung out with a Deloite guy recently. So, of course, like, I didn't care anything about his family, kids, any of that kind of stuff. I just spent the whole couple of days asking about Deloitte. But they have a massive consulting business, like tens of billions of dollars going to the, from the United States government goes from taxpayers to the government to Deloitte. And they do all this stuff for Fortune 50, Fortune 500, Global 2000 as well.

But they have this whole educational campus that they built in Dallas, where it's an educational campus when they're training new folks, like all the new crops of folks coming out of the universities going to Deloitte into consulting jobs or audit or tax or any of that kind of stuff. They all funnel through kind of this place in Dallas that's just supposedly very palatial. So next time I'm up there, I want to go check it out. Cool. So I don't know if that was helpful for this, but yeah, anyway, just there's so much money going on.

All those people are in the records. Yeah, I think it is. I mean, they mentioned that one of the locations says 2,000 square feet of unused real estate. I don't know that I've ever heard that in a business like this, that they have so much extra real estate that is unused that hasn't been built out yet. So, you know, to your point, Michael, in a growing market, that is something that could be interesting. They're renting, they're leasing, right? Or did we do they own?

I wonder if this is one of those situations where the gotcha on this is they are very profitable because they have very old below market leases that if they were to renew at this point, when the things come up and do, they're going to get hammered on profitability. I think it's our friend Chris Powers that says all profits eventually flow to the real estate owners.

That'd be the first thing I'd be interested in. What do the leases look like in this deal? Because location matters so much for a business like this. You're trying to give people the right vibe. They've got to feel good coming in. You've got to be in the right location. You're the right demo. And if they've been in business for 20 years, decent chance they're on some long-term leases that are way below market.

way below market. And if you have to move, your business is over. Done. I mean, yes. Because you think about them looking for insight selection and they tell they're a broker that they need a place

with 6,700 square feet, they're going to be concerned about finding that amount of real estate in a good location. Yeah, their margins are, it looks like, around 22%, which is strong, but I think that's pretty on par with a lot of the other,

you know, similar franchises I've seen in this industry except for obviously there are some that completely suck when. So, yeah, it would be interesting to know how much is that potentially inflated by the least terms.

It's too bad Heather's not here because this is total SBA like down the fair way. She'd be like, oh, let me tell you about this. Whereas every other deal we do, she can't get an SBA load, but this is like perfect for her. It would need like the Perry Pesu up size. That's right. That's right.

But Heather could do that. So reach out to Heather as you need. They can go up to like $8 million or so, I think, right? I think that's up to $10. I think that's five. Five SBA and up to five Perry Pesu. Live O can do that. I'm sure other lenders can too.

But it's not on every deal. Like the deal has to support that amount of leverage. There are a whole bunch of caveats because your lender has to underwrite the deal. But yes, I believe it's five plus five is the program maximum. And the peri pursuit thing, like, how does that usually, how does that usually change things just as far as, like, is it the same terms as SBA or do they, is it, is the rate higher? It's, I think it's a little bit higher, but of course, you'll have a blended cost of capital because

you have that SBA loan at, you know, whatever good rate there, it, you know, it is there. It's going to be a higher rate on the peripsu loan because obviously the peripso loan does not have a government guarantee, right? It's going to have your personal guarantee, but it's not going to have the government guarantee standing behind it. So that Perry Pesu loan, even though it is of the same seniority as the SBA government back loan, they're going to require a higher rate because of the risk that there's no government backstop. But it's cheaper than equity, right? Yeah. So you're going to have a blended cost of capital that is higher than the SBA cost of capital, but it lets you do a $10 million loan and use $5 million, that $5 million slug of SBA to kind of average

down your cost of capital. Yeah, that's awesome. So I like this one. I obviously would want to, I would be very interested in the franchisor side of things and just the dynamics there. But it's hard to, I mean, with this amount of scale, this amount of owner involvement,

if that all checks out, I think this is worth North of up four. I really do. Yeah, I think it is too. With that kind of seasoning and mature management organization, they can be remote and like a national brand, I think they'll probably get four to five times.

It's not that crazy. Michael, you could drive Dallas and get free massages if you own this thing. Oh, yeah. Yeah. You could open one in San Antonio. Oh, I don't know, man. The demographics of the Tito are very different than the other three big cities in Texas. You just have to be careful about what you try here.

So it's rough. All right. Well, that wraps it up. Good one, Connor. Thank you for bringing it. Connor, will you just tell people why the heck you know so much about franchises? Oh, well, I don't know about that, but I do, I've owned a couple franchises, sold one in September of last year that was in home services, but still I'm in one and that's a niche B2B waste management adjacent business, but then I'm also a consultant. So I help people. I'm kind of like a realtor for franchises. So just people that are interested in getting into the franchise game, but, you know, want help. Finding the right opportunities, evaluating them, funding them, stuff like that, you can reach out to me. So yeah, my website is Connor Gris. com. You can book a call there. Sweet. Well, thanks for being here, Connor.

Gertz, thanks for being here, even though you're a little laggy. But if you guys listen to this episode and liked it, we have 450 or so more just like it on ACQUanon.com. That's our website, aquanon.com. We have them categorized by industry. So if you're into health and home services, you can find that. If you're into construction, you can find that. If you're into e-commerce, you can find that. In the software, you can find that. You're in the software. You can find that. So you can go listen to just curated Acquisitions Anonymous only for the industry that you're into. It scratches your edge. So go check it out. You can also get on our email list on the website where if you're not an audio person, we will email you the deals with high level summaries.

So you can kind of figure out which one would dip into on the audio. So get on our email list there. We do not email very much just when new episodes come out. And so thank you for listening. See us on the website. We'll see you on the next episode of Acquisitions Anonymous.