Money
Franchise owner who sold for $1.8m warns of personal guarantees and minimum royalties
My First Million
Asking 3 young millionaires how they make $1.8M, $5M, & $12M/year
What was said
""The a lot of people don't realize franchise agreements also have a personal guarantee where you owe them royalties every month as a percentage of revenue. I think most people know that with franchises, but there's minimum royalties, which means you either pay some percent of your revenue or this fixed amount on a schedule, whichever is higher.""
Kevin says he sold his Smash My Trash franchise business for $1.8m after roughly four years, describing it as a "starter business" that became psychologically heavy due to debt and contractual obligations. He says he carried multiple personal guarantees: SBA-backed loans used to buy trucks, plus a 10-year franchise agreement that, he claims, included minimum royalty payments regardless of performance.
Verification status
Attributed speaker claim
Egleze verified who said this and where. The underlying claim has not been independently established by Egleze.
Source and context
Egleze verified who said this and where. The underlying claim has not been independently established by Egleze.
- Programme
- My First Million
- Episode
- Asking 3 young millionaires how they make $1.8M, $5M, & $12M/year
- Clip time
- 27:50
- Original source
- Watch the source segment →
From this episode
My First Million