Applying the Success Secrets of the Ancients to the Restaurant Franchise Wealth Model

Hailed as a classic wealth building book, George Clason’s “The Richest Man In Babylon – The Success Secrets of the Ancients” uses the historical city of Babylon as a backdrop for common-sense wealth building secrets.

Despite being set thousands of years ago, the principles of paying yourself first and building a continuous stream of income are remarkably applicable to the restaurant franchise business model.

Clason’s wealth building principles include:

  • Invest in things that will make you more money
  • Seek advice from professionals
  • Insure a future income
  • Reinvest to grow your income.

Fransmart founder and CEO Dan Rowe has proven these principles time and again growing emerging restaurant franchise brands into national and international chains. Rowe himself is also a ground floor franchisee with Five Guys Burgers & Fries. Along with his partners, Rowe used “The Richest Man In Babylon” principles to grow their wealth to 10x their initial investment. How did they do it?

The object of any investment is to create passive cash flow – money that comes to you without having to actively work to get it. This golden opportunity happens when a restaurant franchise generates enough money on its own, not requiring the franchisee owner to be actively involved in generating the income. The best thing to do with that cash flow is to invest in the next venture, i.e. open more units or diversify your portfolio with a new brand. Rowe’s Five Guys Burgers & Fries investment group used the money their first restaurant generated to invest in new units, driving strong profits until the investment was worth over $7 million.

Q: How did Rowe’s investment group and the Ancient Babylonians make compounding interest work in their favor?

A: They built upon their principle investment to generate even more money and saw their investment returns grow exponentially.

The restaurant franchise model gives entrepreneurs the ability to be their own boss, and follow the “The Richest Man In Babylon” principles in the modern world. Profits from the first restaurant franchise give you money to open up more restaurants, compounding your income stream. To maximize your profit potential much like Rowe did with Five Guys, investors should acquire protected territories before they are sold out, what we call “getting in on the ground floor”. The master franchise and multi-unit franchise models leave room for growth and the ability to reinvest in your business and in yourself.

Saving under a mattress does not make your money grow – you need to invest with vehicles that will make you more money. Albert Einstein said, “The 8th wonder of the world is compounding interest”. Follow this principle, and your food franchise will become an employee of yours, making you money everyday.