What happens when you ignore your gut and hold onto a struggling franchise too long? In this episode, Erik Van Horn shares the raw story of how one decision cost him over $100,000—and how it shaped the way he approaches franchise buying today. From distressed sellers and employee transitions to risky leases and LOI clauses, this episode is packed with real-world lessons for franchisees, franchisors, and investors alike.
🔑 What You'll Learn:
-The $100K mistake that changed Erik's entire investment strategy
-How to spot a distressed seller (and how to negotiate with them)
-What most sellers don't understand about buyers
-How to structure a smart, risk-aware Letter of Intent (LOI)
-Why culture and employees can make or break an acquisition
-Real red flags buyers often miss (like prepaid revenue traps)
-The power of empathy, humility, and scars in franchise success
🛠️ Resources Mentioned:
-Franchise Secrets Facebook Group: franchisesecrets.com/facebook
-Scalable Franchise Coaching: scalablefranchise.com
-Free custom GPTs for franchise buyers and operators (coming soon in the Facebook group)
⏱️ Timestamps:
0:00 – The $100K mistake that started it all
1:14 – What went wrong: remote ownership, false optimism, sunk costs
3:38 – Why some deals are better left behind
5:50 – The psychology of a distressed seller
6:55 – What buyers are REALLY thinking (but don't say out loud)
9:00 – How to protect yourself with a rock-solid LOI
12:46 – Lease pitfalls, employee contracts, and legal landmines
18:46 – Secret shopping: how to really understand a franchise's culture
21:22 – How to evaluate team dynamics and playbooks post-acquisition
23:31 – Ego, empathy, and becoming a better franchise buyer
26:11 – Why peace of mind is often more valuable than the best price
27:39 – How to manage risk when buying a franchise
28:26 – What's next: acquisitions, GPT tools, and how to get involved
📢 Subscribe & Follow:
Don't miss future episodes with top franchise operators, experts, and insiders. Subscribe on Apple Podcasts, Spotify, or wherever you get your podcasts.
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
#Franchising #Failure #Lessons
