Franchising is emerging as an overlooked route to business ownership and wealth creation, as entrepreneurs acquire established locations, expand across multiple brands and use proven operating systems to scale their businesses.
Behind familiar storefronts and everyday service businesses, a group of entrepreneurs is quietly building substantial business portfolios. From automotive repair shops and moving companies to restaurants and home services, multi-unit franchise ownership is creating opportunities for operators to grow beyond a single location.
In an interview with Founders Story, entrepreneur Alex Smurnak discussed how franchising can help aspiring business owners enter entrepreneurship without having to develop an entirely new business concept from scratch.
Smurnak, who has founded four companies, operated a franchise and invested in another, explained that franchising offers a structured alternative to launching an independent startup. Rather than building a brand, operating procedures and customer acquisition strategy from the ground up, franchisees can work with an established brand and an existing business model.
From One Location to a Multi-Million-Dollar Business
One of the biggest opportunities in franchising, according to Smurnak, lies in expanding beyond a single location. Entrepreneurs who establish successful operations can acquire additional outlets, build centralized management teams and spread resources across multiple businesses.
The interview highlighted the example of a Midas franchise operator who reportedly expanded to nearly 36 locations using seller financing for many acquisitions. Under this arrangement, buyers pay an agreed amount upfront and make additional payments to the seller over time, potentially reducing the need for conventional bank borrowing.
Another entrepreneur discussed in the interview reportedly grew to approximately 120 locations across four or five franchise concepts in seven years, including Dave’s Hot Chicken, Marco’s Pizza and PopUp Bagels. The operator raised capital from investors and retained partial ownership in individual businesses.
These examples illustrate how franchise ownership can evolve from a single small business into a diversified portfolio. However, revenue figures should not be confused with profits, and individual operators’ results do not guarantee similar outcomes for new franchisees.
Why Franchising Appeals to First-Time Entrepreneurs
Franchising can appeal to professionals who want to leave corporate employment but lack a specific startup idea. Established brands may offer training, operational guidance, marketing support and recognizable names, giving new owners a starting framework.
Smurnak emphasized that the choice between franchising and starting an independent company depends on an individual’s personality, risk tolerance, skills and long-term ambitions.
Independent startups can offer greater creative freedom and potentially higher upside, but entrepreneurs must develop their own systems and establish demand. Franchises provide more structure, although owners must follow brand rules, pay applicable fees and operate within contractual requirements.
The Appeal of Boring Businesses
The interview also highlighted home services and other less glamorous industries as potential opportunities for business ownership.
Moving companies and garage renovation services were cited as examples of businesses that can generate substantial revenue without necessarily requiring the investment associated with a large restaurant or premium retail location.
Their appeal lies in practical customer needs, established operating processes and the potential to expand into additional territories. Nevertheless, startup costs, staffing, competition, customer demand and operating margins vary considerably between brands and locations.
Financing and Acquisitions Can Accelerate Growth
Buying existing franchise locations can provide an alternative to opening every outlet from scratch. Established businesses may already have customers, employees and operating histories, while seller financing can help structure acquisitions around future payments.
As an operator develops a track record, additional financing options may become available, including bank loans, Small Business Administration-backed lending in the United States, private investors and private equity.
However, access to capital depends on the buyer’s financial position, the business’s performance, the terms of the deal and the lender’s requirements. Borrowing and seller financing also carry repayment obligations and do not eliminate business risk.
Why Due Diligence Matters
Despite its advantages, franchising is not a guaranteed path to wealth. Smurnak cautioned against investing in unproven concepts, particularly expensive food and retail franchises without a demonstrated operating history.
Prospective buyers should examine franchise disclosure documents, initial investment requirements, royalty and advertising fees, territory protections, unit-level financial performance and the franchisor’s financial health.
Speaking directly with current and former franchisees is also essential. Their experiences can help potential buyers understand the actual workload, support provided by the franchisor and challenges involved in operating the business.
Another misconception is that franchises generate effortless passive income. Owners often need to be deeply involved during the early stages, building teams, managing operations and establishing consistent performance. Delegation may become possible later, but it requires capable managers, reliable systems and sufficient cash flow.
A Different Approach to Financial Independence
For Smurnak, entrepreneurship is about more than building wealth. He described how running a laundry business during college changed his perspective on work and motivated him to help more people become business owners.
His broader message is that entrepreneurship does not necessarily require inventing the next major technology company. For some people, acquiring or operating a proven local business may offer a more suitable route to independence.
Ultimately, the franchise model offers both opportunities and challenges. The entrepreneurs who build lasting businesses are likely to be those who combine careful research, appropriate financing, operational discipline and a clear understanding of the risks.
The real lesson behind the success stories is not that franchising guarantees a $100 million empire. It is that a well-chosen business, expanded methodically and managed effectively, can become much larger than a single storefront.