I thought franchising was the karaoke version of entrepreneurship...

But I didn't know that some franchisees were making $600K+ per year with world-class support systems.

You're singing someone else's song, following someone else's rules, and paying for the privilege. Honestly? I thought that meant it wasn't "real" business ownership.

I was wrong. Dead wrong.

After interviewing Clayton (Amazon refugee turned Bumble Roofing Franchisee), Tim (Chick-fil-A owner-operator), Connor Groce (franchise broker), and Aaron Harper (Rolling Suds Founder) I realized franchising deserves a serious look—especially if you're exploring your first business.

Here's what blew my mind:

Three Paths to Entrepreneurship

I used to think there were only two ways into Entrepreneurship:

1. Start a business from scratch (sourdough from starter)

2. Buy an existing business (inheriting someone else's recipe)

Turns out there's a third: Franchising (box mix that still tastes great)

It's the middle ground between going solo with no support and buying a business you've never operated. Less romantic than building from scratch, but people will still pay you for it.

Why the Survival Rate Will Blow Your Mind

90% of franchise businesses are still operating after 5 years.

Compare that to 50% for independent small businesses.

Check out Clayton. I interviewed him last week where he told me that he left a $330K Amazon job because he was tired of explaining Luxembourg logistics to his friends.

He spent $90K for two Bumble Roofing territories. Zero roofing experience. He's doing $300K in sales after 3.5 months because he's executing a proven system, not innovating one.

Crazy.

What I Got Wrong About Franchising

Myth: "Franchises are training wheels for people who can't run real businesses"

Reality: The best franchises attract world-class operators, not wannabes. For example, Chick-Fil-A gets 60,000 Franchisee applicants a year. Only 80 are selected. As Tim says, “You have better odds being a first-round NFL draft pick than becoming a Chick-fil-A Franchisee!”

The Bottom Line

If you want to:

• Skip the "figure it out" phase ✓

• Get proven systems and support ✓

• Focus on execution over innovation ✓

Franchising might be your play.

The tradeoff? You're buying a proven system instead of creating one. And yes, you're paying royalties—but make sure you're actually getting value in return.

Quick Watchouts for Now:

• 90% of the 4,000 franchises out there are hot garbage

• If you hate following rules, this ISN’T your jam

What's Coming Next

Why am I talking about franchising now?

I recently got obsessed with learning about this space because I realized I'd been tricked into believing franchising wasn't a viable option. For years, I looked down on it as "lesser than" real entrepreneurship.

Turns out I was the idiot.

After digging into the numbers, talking to actual operators, and seeing the economics firsthand, I know better. And I’m passing on what I learned, to you.

So I'm doing a short, 4-part series where I interview franchise owners and operators to get the real scoop—not the marketing BS, but what it actually looks like to own and operate these businesses.

This is Part 1 of that deep dive.

• Part 2: How to evaluate franchises (FDD breakdown, what to look for, red flags)

• Part 3: The real economics (Connor's numbers, Clayton's investment, Tim’s Chick-fil-A money printing machine, what it actually costs)

• Part 4: How to get started (finding the right fit, working with brokers, avoiding mistakes)

Then: I'm hosting a live webinar with Connor Groce (franchise consultant who's helped 70+ people through this process and just general cool dude!) where we'll break down his exact framework for evaluating franchises and answer your questions live!

He promised to tell us who the best and worst franchises are hahaha (jk but I hope to pull SOMETHING out of him!)

Next week: We're diving into the franchise disclosure documents (FDDs) and I'll show you exactly what to look for when evaluating opportunities.

This Week’s Nikonomics Podcast Summaries

Podcast Summaries

🎙️ Guest: Clayton Edrington
Business: Bumble Roofing (Franchisee of Empower Brands)
Insight: Clayton left his $330K/yr Amazon job to launch a roofing franchise—no prior roofing experience, just a big bet on home services, sales chops, and community support.
Model: Marketing + sales engine, subcontracted labor, high-margin, scalable, low startup costs.

🔗 Listen Here: Nikonomics Episode 181 - Apple / Spotify

🚀 AI Roundup with Elizabeth Knopf

🔧 Tool of the Week: Claude.ai as a Personal Assistant
I finally set up Claude to access his email + calendar—and boom, it became a real digital assistant. Want your AI to remind you what’s on deck for the week, flag important emails, and help you write responses? Claude’s projects + Google integrations make it feel like a sharp, organized EA—without the onboarding drama.
Pro Tip: Start with a “Personal Operating Manual” doc to train it like you would a new hire.

🔗 Listen Here: Nikonomics Episode 182 - Apple / Spotify

🎙️ Guest: Chris Koerner
Chris built HowDoYouUseAI.com in 10 minutes—users share an AI use case to unlock others. It's “give-to-get” meets viral content flywheel.
Model: User-generated content, community-sourced use cases, upvotes, and newsletter fuel—plus, a pitch deck automation side hustle powered by Manus.

🔗 Listen Here: Nikonomics Episode 183 - Apple / Spotify

AI Round Up

Anthropic says 50% of entry-level white-collar jobs will vanish in 5 years
Founder Dario Amodei voiced concern over AI replacing grunt work fast (think: law, finance, consulting), pushing for transparency and regulation. Skeptics say: “Is this genuine concern, or a slow-down-the-competition move?” Meanwhile, Claude’s upgrades (like voice mode) suggest they’re still in the AI arms race.

Big question: Are we headed toward mass job loss… or just a reshuffling of where work happens?

Ask Me Anything

Every week, I’ll be answering a question sent to me via Twitter, Speakpipe or [email protected].

Thank you for reading, please share with a friend!

Nik Hulewsky

Find me & Nikonomics on - Twitter, YouTube, Spotify, Apple