15% vs 35% EBITDA?! The Franchise Math Most Buyers Never Verify

At a recent franchise event, two brands presented nearly identical revenue numbers.

One claimed 15% EBITDA margins.

The other claimed 35% EBITDA margins.

That's a massive difference.

So who's right?

In this episode of Franchise Secrets, I sit down with Kristin Brindley, multi-unit franchisee and seasoned entrepreneur, to break down:

-Why EBITDA claims can be misleading

-How franchisors actually make money

-The retail vs wholesale pricing trap

-Why industry research matters more than brand research

-How to validate margins before investing

-What serious buyers do that amateurs skip

If you're evaluating a franchise opportunity, this conversation could save you six figures — or more.

👉 Before you buy a franchise, do your homework on the industry, not just the brand.

Timestamps:

00:00 Why Industry Research Is So Important

02:04 Kristin Brindley's Origin Story (Cutco → 7 Franchises)

06:38 Built vs. Acquired: Growing to 7 Units Fast

13:22 AI, Automation & Virtual Assistants at Scale

20:17 Buying Criteria: What Makes a Business Attractive

31:29 "Systems, Not Heroics" — The Roll-Up Philosophy

39:05 15% vs 35% EBITDA — Who's Right?

40:44 The Retail vs Wholesale Margin Trap

49:44 Saving Hundreds of Thousands (Tax Strategy Breakdown)

54:16 From Franchisee to Portfolio CEO

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/

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#Franchising #EBITDA #Acquisitions