Empires

How Private Equity Thinks About Franchising — With Wonder’s Adam Lewin

Most people think private equity “kills” franchise brands. But in this episode, Adam Lewin — CEO of Wonder, a holding company for franchisors and multi-site operators — explains why the truth is far more nuanced.
Adam breaks down:
How Wonder evaluates franchise acquisitions
Why they refuse the typical “platform” roll-up model
What emerging franchisors get wrong
Why franchise hype cycles (Dave’s Hot Chicken, Seven Brew) are dangerous
How wonder decides when to build corporate stores vs. franchise
Why franchise failures are often due to founder psychology, not the model
How PE actually models deals, prices risk, and thinks about growth
The real reason Rourke can pay outrageous multiples
Why the public misunderstands how PE influences the brands it buys
If you care about franchising, small business, or private equity — this is a masterclass.
00:00 — What Wonder Actually Is
01:00 — Why Wonder Rejects the “Platform Play”
03:00 — How They Decide Which Brands to Buy
05:00 — Why Scaling Is Harder Than Founders Think
07:00 — The Hidden Challenges of Franchising
09:00 — The Founder Problem: Why Many Stagnate
11:00 — What “Differentiation” Actually Means in SMB
13:00 — Are Multi-Unit Franchisees a Risk?
15:00 — Wonder’s Long-Term Horizon (5–10 Year Holds)
17:00 — Are Hype Brands Like Dave’s/Seven Brew Overvalued?
20:00 — Why Unit Economics Matter More Than Hype
21:00 — Mistakes Every Emerging Franchisor Makes
23:00 — Why Hiring Franchisees Is Like Hiring Employees
25:00 — The Biggest Problem: Bad Early Franchisees
26:00 — Deep Dive: Why Wonder Bought Soccer Five
29:00 — How Soccer Five Actually Works
31:00 — Why Wonder Will Build Corporate Units for S5
33:00 — Why Franchising Is Attractive to PE
36:00 — What PE Gets Wrong About Franchising
39:00 — Growth at All Costs = System Failure
41:00 — How Rourke Pays Insane Multiples
43:00 — Why Rourke Can Hold Brands for 20+ Years
46:00 — Does Private Equity Ruin Franchises?
49:00 — Wonder vs. Traditional PE
51:00 — Where to Follow Wonder & Tucker’s Farm

The Economics of Hotel Franchises - Keni Patel

Are you a multi-unit franchisee looking to sell your locations? https://www.fdcapitalgroup.com/ 
 
Are you interested in buying a top new restaurant franchise? https://eatagape.com/franchise/ 
Keni’s story begins in 1982, when his family immigrated to the U.S. with nothing but visas and a network of distant relatives. Like many Patels from Gujarat, his family moved directly into a relative’s motel—18 people living on-site while working every role from housekeeping to front desk to maintenance.Over time, Keni watched his parents acquire and expand their own motel using a mix of friends-and-family financing, 12% interest bank loans, and extreme frugality. That model—a family living in the back unit, doing every job, and saving every dollar—became the backbone of how Patels came to own 40% of hotels in the U.S. and 80–90% of motels.
Today, Keni owns hotels himself and works as a data scientist at Driftwood Capital, a $5B hospitality investment firm that develops and operates Hilton and Marriott properties.
We break down:
What you’ll learn
Why Patels dominate the motel industry
How friends-and-family lending works in Gujarati communities
What margins look like for economy vs luxury hotels
Why a single family can run a 17-room motel with 60% margins
When owner-operator models stop working
The full economics behind ADR, RevPAR, NOI, and cap rates
Why Hilton, Marriott & others keep inventing new sub-brands
How COVID impacted economy hotels vs upscale hotels
Why management companies exist (and why they don’t buy hotels themselves)
This is one of the clearest, most detailed walkthroughs of the actual business of hotels you’ll ever hear.
CHAPTERS / TIMESTAMPS
0:00 – Growing up in a motel with 18 family members 3:15 – How Patels finance their first properties 7:00 – The origins of the Patel motel network 10:20 – The “friends & family” lending system explained 12:45 – Life living in a 17-room motel 15:50 – Zero days off & never sleeping through the night 18:40 – Why the first motel is the hardest 20:30 – The true margins of economy hotels 23:00 – Converting to a Days Inn and what changes 25:30 – Keni’s portfolio today + Driftwood Capital 27:00 – How hotels actually evaluate performance (ADR, RevPAR) 31:50 – Why hotel data is so rich compared to other industries 33:40 – Revenue per key & top-line benchmarks 36:15 – Cap rates and valuation differences by hotel class 38:20 – Why owner-operator models break above ~60 rooms 40:00 – Corporate contracts & sales in economy hotels 41:15 – When you need professional hotel management 44:00 – Why hotel restaurants rarely make money 47:00 – The cap rate arbitrage in economy hotels 51:30 – Why hotel brands have 35+ sub-brands 55:00 – Keni’s long-term plans 56:00 – Where to follow Keni

He Built a Wingstop Empire (then launched his own brand)

Agapé Restaurants: eatagape.com
Franchise Info: eatagape.com/franchise
Matt started as a Subway employee at 13 — and by his twenties, he owned 12 locations. From there, he expanded into Cinnabon, Dunkin’, and Wingstop, learning hard lessons about unit economics, scaling challenges, and why some brands hit ceilings while others explode.
Today, Matt is the co-founder of Agapé, a fast-casual Mediterranean concept born in Columbus that’s now franchising nationwide. We unpack how his decades as a multi-brand operator shaped his playbook, why he only wants experienced restaurant operators as franchisees, and how Agapé plans to ride the same wave CAVA created — but with stronger economics.
If you’re an operator or investor eyeing the next breakout restaurant brand, this one’s for you.
⏱️ Key Topics
[00:00] Getting his start at Subway at 13
[05:00] Buying his first store and scaling to 12 locations
[10:00] Surviving the chaos of the $5 footlong era
[15:00] Lessons from Cinnabon, Dunkin’, and Wingstop
[25:00] Site selection secrets and real estate strategy
[35:00] Selling Wingstop — and why he says he exited too early
[40:00] Founding Agapé during COVID
[45:00] Competing in the Mediterranean bowl category
[50:00] The future of Agapé and its franchise strategy
🔑 Notable Quotes
“Subway taught me it’s a penny-profit business — you’ve got to scrape to make it.” “If you can do three times your build-out cost in sales, you’re in a good spot.” “We’re not trying to sell units. We’re trying to work with good people and build a kick-ass brand together.”
🧠 Episode Tags
Franchising, Restaurants, Small Business, Fast Casual, Wingstop, Subway, Cinnabon, Dunkin’, CAVA, Entrepreneurship, Multi-Unit Operators, Emerging Brands

He's Building a Sauna Spa Empire (6+ locations)

Connect with FranDawgs
Agape franchise opportunity: https://eatagape.com/franchise/
Buy a franchise: https://www.frandawgs.com/buy-a-franchise
Sell your franchise: https://www.fdcapitalgroup.com/
YouTube: FranDawgs Podcast
LinkedIn: Patrick Buckley
 
Episode Summary
At just 28, Nico Verano walked out of a private equity job and into the heat—literally. After hearing SweatHouz founder Jamie Weeks pitch the sauna-and-cold-plunge concept, Nico became the first franchisee and built five booming locations across Boston. In this episode, he shares how his father’s legendary Italian restaurant launch (featuring The Sopranos cast) shaped his risk-taking mindset, why he built three studios at once, and how old-school hospitality still wins in modern wellness.
We also dive into his new restaurant, My Mother’s Cutlets, and how teaming up with Boston influencer Kevin Cooney through their new venture, Twin Oaks, is redefining what franchise partnerships can look like.
Key Topics
Leaving a stable private-equity career to franchise SweatHouz
Lessons from his father’s restaurant success (and The Sopranos cameo)
The evolution from SweatHouz V1 → V2: turning wellness into luxury
Building three studios simultaneously — and staying profitable month one
Guerrilla marketing through mobile cold plunges and community fitness collabs
How hospitality and human connection drive retention in a digital world
Financial breakdown: margins, payback period, and unit-level performance
The origin of My Mother’s Cutlets — “the Italian Chipotle” of Boston
Partnering with Kevin Cooney to launch Twin Oaks Ventures
Bringing SweatHouz to New York City and what’s next for Nico’s empire
Notable Quotes
“In order to be successful, you gotta lay it down to pick it up.” — Nico’s father “If you can’t find eight to nine people per hour in New York City, you’ve got a big problem.” — Nico Verano “All people want to feel is special. Whether you’re selling meatballs or saunas—it’s the same thing.” — Nico Verano
Timestamps
0:00 — The SweatHouz origin story 4:00 — The Sopranos and the restaurant that started it all 8:00 — Lessons from taking the ultimate entrepreneurial swing 10:00 — From first franchisee to multi-unit owner 14:00 — What contrast therapy really does for the body and mind 17:00 — Guerrilla marketing and how SweatHouz built hype offline 21:00 — Building community through hospitality 26:00 — Scaling fast: building three locations at once 33:00 — Real numbers: margins, revenue, and payback 41:00 — Why hospitality beats AI 43:00 — Partnering with Kevin Cooney and launching Twin Oaks Ventures 47:00 — The story behind My Mother’s Cutlets 50:00 — Running multiple ventures without burning out
Connect with Nico
Instagram: @nicovaranojr, @mymotherscutlets
SweatHouz Boston: sweathouz.com
Twin Oaks Ventures: Coming soon

Why Drive-Thru Coffee Brands are Becoming Empires

Chris Hatch, founder of Dirt Dogs and Forza Commercial, breaks down the business of owning the land beneath America’s top franchises. From Dutch Bros and Raising Cane’s to the dirty soda craze, Chris explains how site selection, drive-thru culture, and brand “soul” shape billion-dollar outcomes. A masterclass on franchising, real estate, and what makes a location truly win.
 
Interested in Agape? https://eatagape.com/franchise/ 
 
Sell your franchise: https://www.fdcapitalgroup.com/ 
 
Buy a franchise: https://www.frandawgs.com/buy-a-franchise
Follow and/or get in touch with Chris: 
 
Listen to his podcast: https://tr.ee/OYH_2bV-Ar 
Work with his company: https://www.forzacommercial.com/ 
X: https://x.com/chriswhatch
LinkedIn: https://www.linkedin.com/in/chris-hatch-5b100711/ 
 

Why Swig is Becoming an Empire (ft. Swig's 1st Investor)

Austin Smith started his career helping build Savory Fund into a powerhouse that scaled concepts like Swig, Mo’Bettahs, and R&R Barbecue. After years of investing in food & beverage, he made the leap from investor to operator — taking a massive bet on Big Blue Swim School.
Considering buying a franchise? Reach out: https://www.frandawgs.com/ 
If you’re a multi-unit owner considering selling your locations, get in touch: https://www.fdcapitalgroup.com/ 
In this episode, we dive into:
How Savory Fund spotted Swig and scaled dirty soda into a national brand
Lessons learned from franchising hits and misses (like passing on Crumbl)
Why Austin shifted from private equity to owning 21 Big Blue Swim School territories
The economics of swim schools, territory buildout costs, and why drowning prevention drives demand
His growth strategy to build $7–10M EBITDA and decide whether to flip or hold long-term
Whether you’re an operator, investor, or aspiring franchisee, Austin’s story offers a playbook on evaluating emerging brands and scaling brick-and-mortar businesses.
 
Chapters: 00:00 – Intro 01:10 – Getting started with Savory Fund and early food & beverage bets 05:00 – How Savory Fund discovered Swig and why dirty soda works 12:00 – Lessons from Crumbl and when to franchise vs. corporate-own 18:00 – Drive-through culture and why convenience brands win 26:00 – Austin’s move from investor to operator 32:00 – Discovering Big Blue Swim School 35:00 – Why swim schools are insulated from tech disruption 37:00 – Buying 21 territories across Utah, Arizona, Nevada, Colorado, and Idaho 49:00 – The cost of Big Blue buildouts and lessons on efficiency 53:00 – Psychology of space: why a “busy” feel matters 61:00 – Growth strategy: scaling to $7–10M EBITDA 64:00 – Long-term vision: flip or hold Big Blue Swim School 1:05:00 – Closing thoughts & where to follow Austin
Links: 👉 Connect with Austin Smith on LinkedIn: https://www.linkedin.com/in/austin-c-smith-a1755548/

He's Building a Dave's Hot Chicken Empire (25+ Stores)

Interested in buying a franchise? https://www.frandawgs.com/buy-a-franchise
 
For multi-unit franchisees looking to sell their locations: https://www.fdcapitalgroup.com/ 
Kal walked away from a Wall Street career to chase his dream of entrepreneurship — and went 5-for-5 picking winning brands. From butcher shops and pizzerias to Orangetheory, European Wax Center, Marco’s Pizza, Dave’s Hot Chicken, and Popup Bagels, he’s scaled to over 100 locations with a private-equity style approach. We dig into how he evaluates franchise opportunities, why diversification matters, how he handles scale and capital raises, and what it really takes to build brands that print cash.
If you want to learn how the best operators think about brand selection, growth, and exits — this is the playbook.
Follow Kal: 
Personal LinkedIn: https://www.linkedin.com/in/kal-gullapalli-91a7525/ 
MPZ Holdings: https://www.linkedin.com/company/mpzholdings/posts/?feedView=all 
Timestamps (YouTube/Spotify Chapters):
 0:00 – From Wall Street to entrepreneurship
 3:00 – Buying butcher shops & early lessons
 7:30 – The bet on Orangetheory
 13:00 – Scaling European Wax Center to 50+ locations
 19:00 – Surviving COVID & raising capital
 24:00 – Why Marco’s Pizza became the anchor brand
 31:00 – Entering Dave’s Hot Chicken at the perfect time
 38:00 – Site selection, unit economics & the secret to growth
 44:00 – The rise of Popup Bagels and reinventing a category
 50:00 – Diversification vs. going deep in one brand
 52:00 – Kal’s daily routine & what’s next

He's Building a Testosterone Clinic Empire (5+ Locations)

For help evaluating franchises, reach out: https://www.frandawgs.com/buy-a-franchise 
 
For multi-unit owners considering selling their locations: https://www.fdcapitalgroup.com/ 
 
Jon Benson’s journey into franchising wasn’t traditional. After scaling a Utah startup from $20M to $450M in sales, and later launching a COVID testing lab that served thousands of people a day, Jon stumbled across GameDay Men’s Health on LinkedIn. Within weeks, he went from curious prospect to signing a five-territory deal in one of the fastest-growing franchises of all time.
In this episode, Jon shares:
How his early startup and healthcare experiences prepared him for the complex operations of a medical franchise.
Why GameDay’s simplified “one-hour testosterone optimization” model is a breakthrough compared to traditional healthcare.
The financing and deal structure he used to secure five territories — and why he approached it like a venture deal.
What it really takes to open and operate a GameDay clinic: site selection, buildout, staffing, and customer acquisition.
The emotional stories of patients whose lives were transformed — including one man who told Jon, “You saved my life”.
His exit strategy, what makes franchising attractive to him, and whether he’ll expand into other brands in the future.
This is a deep dive into how a first-time franchisee can leverage entrepreneurial experience to thrive in one of the fastest-selling franchises in history.

They're Building a Thrift Shop Empire

If you’re a multi-unit franchisee considering selling your locations, get in touch https://www.fdcapitalgroup.com/ 
Interested in buying a franchise? Reach out here: https://www.frandawgs.com/buy-a-franchise 
Episode Summary:In this episode of FranDawgs, Patrick sits down with Margarette and her husband Richard - franchise operators who turned their passion for resale into a thriving multi-unit Uptown Cheapskate business. They share how they went from running large independent thrift shops to building one of the top-performing portfolios in the system, with four Uptown Cheapskate stores across Oklahoma.
We dive into:
The economics of resale vs. thrift shops (staffing, inventory sourcing, square footage).
Why Plato’s Closet rejected them—and how that led to Uptown Cheapskate.
How they fill 10,000 sq. ft. stores without ever running out of clothes.
The proprietary pricing software that keeps them on-trend and profitable.
Hiring and retaining fashion-forward staff compared to high-turnover fast food.
Scaling from one store to four, funding growth with SBA loans and profits.
Why Uptown Cheapskate (and sister brand Kid to Kid) are outperforming most franchise concepts today.
This is a masterclass in how to scale in the booming resale market—while also building a team and culture that lasts.
Guest(s):
Margarette & Richard  (multi-unit Uptown Cheapskate franchisees, Oklahoma)
Host: Patrick Buckley, founder of FranDawgs

The #1 Dog Grooming Franchisee in America - Jacob Lee

🎙️ Guest: Jacob Horton, Multi-Unit Franchisee at Scenthound and Co-Founder of SBA Source
📍 Location: Birmingham, AL & Nashville, TN
If you’re a multi-unit franchisee considering selling your locations, get in touch https://www.fdcapitalgroup.com/ 
 
Interested in buying a franchise? Reach out here: https://www.frandawgs.com/buy-a-franchise 
🔥 Episode Summary:
Jacob Horton went from PowerPoint presentations to puppy baths, and built the #1 Scenthound location in the country.
In this episode, we unpack:
Why Jacob left nuclear engineering and consulting to dive into franchising
The turning point that made him abandon a traditional acquisition search in favor of building a pet grooming empire
How he evaluated over a dozen franchises before choosing Scenthound
The systems he built to drive over 1,000+ active members at a single location
What he’s learned from scaling to 6 stores (on the way to 20)
How a homegrown call center and sales CRM became his unfair advantage
His new startup: SBA Source, the software platform simplifying SBA loans for franchisees
Jacob’s business is proof that boring, recurring revenue models—paired with operational excellence—can create serious compounding growth.
📌 Key Stats:
Opened 6 Scenthound locations in 3 years
Averaging $185K in four-wall EBITDA per location
Built a 5-person in-house sales team + call center
Generated 1,000+ members at his top location
Recently launched SBA Source to fix the broken SBA loan process
🔗 Links:
SBA Source
Jacob's LinkedIn: https://www.linkedin.com/in/jacob-lee-9803a480/ 
🧠 Topics Covered:
[00:00] Jacob’s journey from nuclear engineering to franchising
[06:00] Why he abandoned the ETA path
[09:00] The business case for pet grooming (vs. daycare)
[13:30] Building trust and loyalty through health-focused grooming
[15:00] Opening a Scenthound: real estate, pre-sale, and staffing strategy
[19:00] How many members to break even (and to thrive)
[20:00] The secret weapon: a custom-built call center + CRM
[27:00] Evolution of store ops: from 2 units to 6 and beyond
[33:00] His labor strategy—and how he built the best grooming team in town
[39:00] The playbook for local marketing + Facebook lead gen
[44:00] Why he started SBA Source and how it works
[54:00] His long-term goal: 20 stores + building a legacy