From Successful Start-up Ventures to Embracing Passion and Purpose as a Children's Lighthouse Franchisee

Hubert Vaz-Nayak's journey into franchising with Children's Lighthouse, the family-focused early education and child care franchise, began after a lengthy corporate career in management and consulting. Despite having pioneered successful ventures and start-ups, he sought to build something for himself. After moving to Houston, he was approached by a representative from Children's Lighthouse whom he initially ignored. Vaz-Nayak eventually entertained the opportunity, recognizing the benefits of franchising, especially its ability to reduce the failure risk of new businesses by providing established systems and support. Although unfamiliar with early childhood education, he partnered with others to open his first location. Remarkably, they reached cash flow break-even in just 10 weeks and saw profits far exceeding expectations within a few years.

This success led Vaz-Nayak to open four Children's Lighthouse locations, allowing him to step away from corporate life and explore other ventures. He credits the franchise’s supportive network and collaborative culture for his success. The ability to learn from other franchise owners and the flexible, partnership-driven approach of Children's Lighthouse stood out to him, differentiating it from more rigid franchise models, ultimately making the venture highly profitable and rewarding.

Throughout his experience, Vaz-Nayak has learned the benefits of owning multiple businesses, which allows for a flexible and fulfilling lifestyle. Franchising has enabled a sort of semi-retirement for him, despite working on several ventures, such as a growing electric vehicle charging company and angel networks. He has enjoyed this part-time retirement as it allows him to stay engaged with enriching activities post-retirement. For Vaz-Nayak, business ownership is his passion and he has enjoyed creating opportunities more than building wealth; if he had the chance to invest in Children’s Lighthouse all over again, he would do it without hesitation.

Vaz-Nayak recently joined Nick Powills, founder and publisher of 1851 Franchise, for a webinar where he discussed his franchising journey with Children’s Lighthouse. The transcript of the webinar, provided below, has been edited for clarity, brevity and style.

Nick Powills: How did you get into franchising?

Hubert Vaz-Nayak: My journey into franchising was somewhat accidental. I spent most of my career in corporate America, advising Fortune 500 companies and working in management roles. After realizing I wanted to do something for myself, I was approached multiple times by Children’s Lighthouse, which led to my interest in franchising. Initially skeptical, I eventually agreed to explore the opportunity and found support among other franchise owners.

Powills: What was your understanding of franchising before getting involved?

Vaz-Nayak: I had a good grasp of franchising because I understood the risks of starting a business. Franchising reduces the chances of failure significantly, as it provides a proven model and support that helps avoid common pitfalls.

Powills: What advantages does franchising offer compared to starting a business from scratch?

Vaz-Nayak: Franchising offers "guided learning" and reduces failure rates significantly. Most business failures occur due to a lack of experience and support, which franchising mitigates by providing established systems and peer networks.

Powills: How did you find your experience with Children's Lighthouse compared to other franchises?

Vaz-Nayak: Children's Lighthouse fosters a collaborative environment among franchise owners, which differs from many franchises where corporate dictates operations. The support system and community among franchisees were crucial to my success.

Powills: How do franchise fees compare to the value of support received?

Vaz-Nayak: While initial franchise fees can seem high, they are justified when considering the extensive support in staffing, supply chain and curriculum provided by the franchisor. This support ultimately helps franchisees generate higher revenue.

Powills: What role does company culture play in choosing a franchise?

Vaz-Nayak: Company culture is vital. I advise potential franchisees to evaluate whether their values align with the franchisor's culture. A strong, supportive culture can significantly impact long-term success.

Powills: How has Children’s Lighthouse evolved since you joined?

Vaz-Nayak: The company has undergone significant changes since its founding, particularly after the founder's sudden passing. The current leadership has built a strong infrastructure that enhances franchisee support and collaboration.

Powills: How did Children’s Lighthouse handle challenges during COVID-19?

Vaz-Nayak: Unlike some older franchises that offered little support during the pandemic, Children’s Lighthouse made concessions to help franchisees, ensuring that none went under during that challenging time. This demonstrated the value of their supportive culture.

Powills: Why do you think some franchisees fail to conduct proper due diligence before investing?

Vaz-Nayak: It’s surprising, but many franchisees, even in large companies, do not conduct thorough due diligence. Often, they may be swayed by attractive financial figures without fully understanding the brand’s culture and support systems.

Powills: What is your vision as a franchise owner?

Vaz-Nayak: I plan to sell and retire sooner rather than later, having reached my financial goals. Currently, I enjoy a semi-retired lifestyle with multiple businesses that allow me flexibility.

Powills: How does being a franchise owner impact your work-life balance?

Vaz-Nayak: Owning a franchise has enabled me to work fewer hours while earning a significant income, allowing for more vacation time.

Powills: Are you considering leaving a legacy for your children through the business?

Vaz-Nayak: No, my children have different career aspirations that don’t align with the family business.

Powills: When did you realize that work can be enjoyable rather than obligatory?

Vaz-Nayak: A pivotal moment came when a study linked early retirement to increased mortality rates. This, along with personal experiences, made me appreciate pursuing enriching work instead of traditional retirement. Many who retire early often face negative outcomes. Pursuing work that brings personal satisfaction can lead to a more fulfilling life.

Powills: What motivates you in your work?

Vaz-Nayak: My passion lies in creating opportunities rather than just making money. I enjoy mentoring startups and finding solutions to business challenges.

Powills: How often do franchise buyers reach out to you for advice?

Vaz-Nayak: Occasionally, franchise buyers reach out for insights, especially those interested in starting their own businesses. I emphasize the necessity of being fully involved in the franchise.

Powills: What is your perspective on the work required in franchising?

Vaz-Nayak: Many underestimate the effort required to run a franchise, as it involves significant commitment similar to a startup.

Powills: Would you choose to pursue Children's Lighthouse again?

Vaz-Nayak: Absolutely. My perspective has changed over time, and I now recognize the value of this franchise compared to competitors.

Watch the full webinar here.