Magic Johnson

Showtime on the Court, Mogul in the Boardroom

Many know Magic Johnson for his pizzazz on the court, but few know of his successful business ventures after basketball. It wasn’t until after his illustrious NBA career that he embarked on a career in franchising. Magic Johnson Enterprises, Magic’s investment firm that launched in 1989, owns multiple branches of Burger King, 24 Hour Fitness, Starbucks, and TGI Friday’s. The firm currently holds an estimated $1 billion in investments across various industries. The key to his success was surrounding himself with the right people.

“Many athletes, most retired, have made investments in franchising with mixed results. Those that failed did so because the athlete listened to the advice of a lawyer or agent with little experience in franchising. Those that succeeded did so because they undertook careful due diligence by experts. In all his business dealings, Magic Johnson understood that well,” said Edward Kushell, CEO of Franchise Consulting Group (FCG).

After retirement, Magic’s team contacted FCG in efforts to purchase an undisclosed hamburger chain. Kushell and his team thoroughly analyzed the company’s financial history, management, and the relationships they had with their franchisees. After weeks of careful evaluations, Kushell advised against the acquisition, which Magic followed. The hamburger chain ran out of business a few years later. Much of Magic Johnson’s franchising success came from following the right people.