So you had Park City Vapor Company and then what came next at Mid City Vapor Lounge?
Beau Maxon 15:33
Yeah. I opened up three Mid-City Vapor Lounge locations and, you know, same business model, just different counties and, you know, open those ones up really quick. It was during 2020 that I made the really aggressive push to open up as many additional retail locations as I could, just recognizing, you know, the landlord tenant climate. At that point in time, you had so many businesses that were closing down because they were forced, you know, to close for a period of time during Covid or their business model didn’t have the ability to adapt to new regulations, if you will, during that time. And being in the regulated industry that I am, zoning is a huge part of that.
Here in the state of Utah, we’ve got zoning laws that are five times more strict than a bar. even more strict than a medical cannabis pharmacy here. And so there were so many vacancies that I just made an aggressive push, put together some really. Well organized 3D renderings and videos of interior build outs of locations. So I would go into a location, measure it, and then do an entire build out, present it to the landlord.
If they were wanting $30 a square foot, you know, and some people might hear this on a business podcast and go, well, you know, wouldn’t you want to try to get it for less? But there’s also moments in time where, you know, paying a little bit of a premium is worthwhile, you know? So I had no problem offering a landlord that wanted $30 a square foot. I’d offer them $35 a square foot, ask for no tenant improvements, because, you know, although t and having that lower price per square foot certainly would have been attractive. I also recognize that the industry that I’m in is highly scrutinized, and I did not want to offer them something that they’re like, well, you know, someone, someone else could give me this same type of offer.
And I’m not going to deal with a business that has the ability to change the perception of my, you know, building or plaza, etc.. And so I would just make an offer that was too good to say no to and allowed me to open those up. And then from there, you know, one of the things that I always was a believer in when I worked at TD Ameritrade, focused on like specific sectors and and know them well. And so for me, the most, you know, respectful way it can be said addiction industries were what I chose to target. Tobacco.
Coffee. Cannabis, and I suppose the more critical word that I would use rather than addiction, recession proof. You know, there are studies that have shown that tobacco and alcohol use during recession actually substantially increases. So in fact, it’s good for business. And I can testify to the fact that during 2020, when Covid was, you know, full, full bore business changed.
It changed significantly. And I just operated under the notion that they’re going to buy it from somewhere. It might as well be me, you know? So I’m going to get myself in these industries that are more recession proof.
Chad Franzen 19:18
Was it difficult to maintain operations during Covid, even though maybe your product was more desired?
Beau Maxon 19:27
Oh, absolutely. It absolutely was. And you know. How it became difficult. I had the opportunity to work with someone who started manufacturing hand sanitizer for very cheap. I don’t know if you recall this, but, you know, people were selling hand sanitizer for 15, 20 bucks a bottle on Amazon. Right. Just price gouging the hell out of people. And so a friend of mine started manufacturing hand sanitizer.
And, you know, I sold it for five bucks, and I was selling so much hand sanitizer, I was I was for a brief period of time selling more hand sanitizer than vape products, just because so many business owners were coming to me because they were like, thank you for not price gouging. Like, this is something that I can actually afford and make sure all of my employees have access to, etc.. You know, but we had to change a few things for a while. We had to conduct transactions at the door as opposed to the counter, you know, point of sale system, etc.. So there are some challenges, no question about it, but, you know, adapt or die.
And so we did our best to adapt.
Chad Franzen 20:47
Sure. So you so what’s how well you own multiple other businesses. Now tell me about medical cannabis processing.
Beau Maxon 20:55
Yeah. So so it’s pronounced “heal you.” Oh sorry. Yeah. Don’t be — I didn’t come up with the name.
It’s my business partner’s creation. Heal you is a brand owned by Life Elevated Processing. It’s a tier one medical cannabis processing facility. And we manufacture products for the 15 medical cannabis pharmacies here in the state of Utah. And Justin is my business partner, one of many on that one.
It’s a large endeavor and he loves cannabis. All things cannabis in particular Primo. He loves premium, high quality, patient, you know, focused product rather than purely being recreational based, which is part of what attracted me to getting into it. And, you know, once again, you don’t know what you don’t know. I did not know just how incredibly intense and sophisticated cannabis processing can be.
It’s definitely, you know, science-driven and complex and not only complex, but also highly regulated. You know, the Utah Department of Agriculture and Food oversees the medical cannabis program, and they’ve constantly got cannabis agents inspecting the facility, inspecting products. You know, they track it from seed to sale just to ensure that the quality of the product is meeting a certain standard for customer protection reasons. You know, they want to make sure there’s no heavy metals or particulates or mold, etcetera, in those products. And so they watch heavily or closely, shall I say.
And, you know, it’s also an industry that is very political as well. That seems to be a common theme where there’s money, there’s a lot of politics. Right. And that’s been something to overcome because you have to play that political game to build those relationships, to ultimately sell your product.
Chad Franzen 23:23
Yeah. Yeah, I would imagine. And then you also you’ve invested in Beans & Brews coffee house.
Beau Maxon 23:29
Yeah. Yeah. That’s my first franchise. If we’re talking of addiction, coffee is mine. I’m that guy who will drink it late at night and still go to bed.
I love it, it’s. It’s my comfort food, if you will. And Beans & Brews. They originated here in Salt Lake City, Utah, 31 years ago and built quite a name for themselves, respectable brand. And for me, as I stated previously, recession proof businesses are where I wanted to focus.
And so I elected a few years ago to open up my first beans and brews. Certainly has been educational. Matter of fact, I was talking with my girlfriend about it last night. It’s to me the most fun of all the businesses that I own, just because I’m not dealing with all the red tape and all the politics, if you will. And at the end of the day, it’s just, do you make good coffee?
Do you make good, you know, breakfast sandwiches and do you provide good customer service? You know, as long as you do those things, it’s going to be alright. And it reminds me of my days when I used to live in Los Angeles and I was bartending, you know, slinging drinks. And, you know, now when I’m over in that store, I’m just handing out coffees and, you know, loving when it’s busy, it’s way more fun when it’s busy and you’re just working with all these different people, having random conversations. But yeah, definitely a good experience and very different from anything else I’ve done.
Chad Franzen 25:10
Yeah, yeah, I would imagine so. You know, you, you had built shops or stores or whatever from the ground up. You put your stamp on all of it. What’s the difference? You know, in becoming a franchisee where it’s kind of maybe the business model is already set up.
The brand is set up. Was that frustrating for you to have not not have maybe as much say. Or did you enjoy that?
Beau Maxon 25:31
You know, I appreciate you asking that question, actually. And for anyone who has yet to open up their own business as well as a franchise, you know, that’s an incredible, fantastic question to ask because there’s absolutely a difference. For somebody who’s never opened up their own business before, there’s a lot of value in opening up a franchise, right? Because they’re giving you the foundation to build that business on. You’re getting so much support in certain areas, in particular pertaining to inventory.
As well as back-office administration work, and in that there’s a lot of value, as well as the fact that with the franchise, you know, they’re running and in charge of all things marketing and media related, and you’re able to piggyback off of the brand recognition, hence how they’re able to command, you know, depending upon their franchise, anywhere from, you know, 6% to 9% of gross sales, you know, but at that point, you have a real business partner, you know, 6% to 9% gross sales. You know, when you break it down, at the end of the day, that’s a lot more than 6% to 9%, right? And for me, it was frustrating actually, it was frustrating because although they’ve built a successful business, when you look at a franchise they like to keep within a particular lane because they’re dealing with so many locations, right? And for me, although I recognize and understand that, I can’t help but look at the business model that is beans and brews and the franchise that I’m in in the most respectful way, and look at it and say, there’s a lot of things I would do differently. It’s typical that in a franchise, you’re going to work with far more antiquated point-of-sale system and back office equipment, because in order to update 50 or 100 locations, you’re going to spend a lot of money and that’s going to be a lot of downtime, etc. A lot of things could go wrong.
And so they’re just going to stand pat with what it is they have. And in my other businesses, I’ve got far more up to date, in my opinion, reliable, easier to use, user friendly, you know, if you will. Point of sale systems accessible from anywhere, whereas so much of the back end is only accessible on the virtual, you know, terminal that is in the actual coffee shop. So little things like that, you know, to where you’re basically you’re paying to be an employee. If you’re paying that franchise fee, you’re paying those royalties to run the business like they want it to run.
And for, you know, somebody who’s already opened their own business and is capable of doing those things, I don’t think it’s nearly as attractive. And, you know, truth be told, if I could do it again, I would have opened up my own coffee shop and put my stamp on it, if you will. My twist on the build out, on the equipment, on the menu, etc..
Chad Franzen 29:11
You also work in commercial real estate. How has that kind of influenced your approach to business?
Beau Maxon 29:18
It’s influenced by it just because banks love real estate. So, you know, like I said at the beginning of the podcast, you know, step one: create a cash flowing business. Step two purchase real estate. And the real estate has been a real winner for me. I’ve been blessed on a number of occasions to come across some truly undervalued properties and purchase those and flip them, do a 1031, jump into something bigger and continue to defer taxes.
Do a cash out, refinance, pull my money out on that, you know, and go put it to work for me in other areas. And, you know, I think that’s something that a lot of business owners focus on is real estate, and to me, it’s been a huge one because banks will love to take it on collateral every single time. When they see you’ve got the cash flow, you know, to be able to make the payments on that. They say they don’t want you to default. But when you’re sitting in such a great LTV situation, you know, we know they’re going to take the risk on something because they, they see, okay, you want to borrow, you know, $1 million and you’ve got a million and a half in equity in this property.
You know, I’ll take that risk because if you default, I know I’m going to be able to very, very easily get my money back. If not, make money on your default. And so that allows you to take a little bit more risk. And also, you know, allows you to create additional cash flow by purchasing the right type of properties to where you, you know, lease Leased that property out and he’d get a tenant. And, you know, they’re paying down that mortgage and you’re able to show that additional income for, you know, you want to be able to go get a loan for other properties, etc..
Chad Franzen 31:22
So with all these, you know, businesses under your belt, what are some of your goals for the future in terms of your current businesses and maybe other ideas?
Beau Maxon 31:33
Well, first things first. Gotta go kick big tobacco in the teeth. We’re in a serious situation here in the state of Utah. The Utah Vapor Business Association is really the only thing standing in the way of R.J. Reynolds and Altria creating a monopoly here in the state of Utah on all things tobacco. The FDA has what’s referred to as the Pmta process.
Assets and as presently stands after Senate Bill 61 was passed during the 2024 General Session. As of January 1st, 2025, the only vapor products that will be allowed to be legally sold in the state of Utah are all owned by Big Tobacco. And so we’re suing the state. We’re suing the state again. And I feel very confident that we will receive injunctive relief.
And then we’ll have to go to the Utah State Legislature to make changes there. And, you know, I’ve been doing that for six years now. And no question, this is the biggest fight we’ve ever been in. But I like our chances. So that’s what’s got to happen first.
And then after that I’m definitely at this point in time where I want to more heavily invest in real estate. but I also want to get into manufacturing additional products. So the cannabis lab is going to be a heavy focus for me. There’s a retail product that I’m going to be launching here shortly that is cannabis derived and still going to contain levels of THC to get the user, the end consumer, what it is they’re looking for, but something that will still be allowed to be sold online, and it’s going to be a high quality product that’s going to be a focus of mine, real estate. And then.
I would also have to say. You know, more e-commerce driven businesses, just because when you’re in retail, your overhead is so heavy, right? You know, the cost of employees, but in particular a traditional retail space, you’re paying a far heavier amount of rent per square foot. That and then insurance. You know, it’s a different ball game.
So e-commerce is going to be my next shift if you will. And for me that’s going to be manufacturing a new cannabis brand. And then pushing heavily into e-commerce and then continuing to invest predominantly in real estate just because e-commerce has an unlimited ceiling. You know, I’ve seen people blow up brands online in a quick minute and retail, you’re just capped. It’s how many people are in your local market.
And you know, what percentage of that market is a consumer of your product, etc., whereas online, you know, it’s limitless.
Chad Franzen 34:53
Sure, sure. I have one more question for you. But first tell me how people can find out more about everything that you have going on.
Beau Maxon 35:05
The Utah Vapor Business Association website. We update everyone on all things pertaining to tobacco on that website. And with respect to me as an individual, you know, truth be told, I’m a pretty private guy. You know, I have social media, but it’s all private and I’m seldom ever, ever on it. I’m kind of that mindset that loves to operate, you know, quietly, if you will.
Chad Franzen 35:41
And your business’s website.
Beau Maxon 35:44
ParkCityVaporCompany.com, MidCityvaporlounge.com beansandbrews.com and then the brand that’s going to be coming out here shortly. And this is going to be for those who are users of cannabis products as well as Amanita muscaria products. Amanita muscaria is kind of the sister to psilocybin and so mushroom derived, and that brand is called Dank Dice. And the website is going to be launched here shortly.
We’re going to have edibles that are both five milligram THC as well as 15 milligram THC. We’re going to have THC disposables cartridges as well as Amanita muscaria edibles. And that’s going to be a fun brand, Adankdice.com.
Chad Franzen 36:33
How do you spell that?
Beau Maxon 36:35
A d a n k d I c e.
Chad Franzen 36:40
Okay. Sounds good. Hey, last question for you. Let’s say a young person or just anybody came to you and they had this idea to open up their own shop and a kind of a niche market like you’ve done. What advice would you give them that they would never know unless they’d had your experience.
Beau Maxon 37:00
Great question. That’s a tough question, Chad.
Chad Franzen 37:03
That’s it. That’s what I pride myself on.
Beau Maxon 37:05
Yeah. No, I appreciate that. What would I tell a young person just getting going? This kind of goes back to what is the real cost. I would encourage them heavily to write down what it is they want in life.
And then I would encourage that they work it backwards and write down how they feel that that’s going to look, what that’s going to require of them. And then to ask themselves, are they willing to sacrifice Certain things in their life. And if so, is that a price that they’re willing to pay? Because, you know, to accomplish anything in life, you have to make sacrifices along the way. It doesn’t matter if you’re an athlete or a doctor.
You know, we could go on and on about that. Yeah, I would encourage that. They just ask themselves truly what it is they want, you know, because so often in life, myself included, we got we get caught up in the ether, you know, of the moment we’re we’re addicted to that, you know, rush that you get when you see yourself growing and accomplishing things. ET cetera. And then in doing that, you can forget who you are.
You can forget what matters the most. And. I think, you know, I saw this interview with a gentleman multi-billionaire. He’s sitting on his private jet, and somebody asked him a very similar question, and he referenced the fact that it cost him his relationship with his wife impacted his relationship with his children. And this man’s flying on a, you know, $50 million jet.
And, you know, he answered honestly, he’s like, I would do differently. You know, I would do it differently. If I could go back, I would have focused here and lived with the outcome over here with work, you know, because in so many ways, what are we doing it for? We all want to achieve great things, but ultimately, what is it we’re doing it for and for me anyways? And I, I’d like to think most people operate the same way.
We’re ultimately doing it for the ability to take care of the people around us, our loved ones, whether it be your spouse or your siblings or your parents. You know, I retired my parents a number of years ago, and that was one of the things that has made me the most proud of anything I’ve ever done. So it’s like, what is it you’re doing it for? Don’t lose sight of that. Remember?
Remember who you are. Don’t allow work to change you at that truest, most fundamental core. Work’s going to require you to become somebody different than you’ve ever been. In order to do something you’ve never done. You have to become someone you’ve never been.
But don’t forget, truly, who you are is what I would encourage the most. And that’s where spelling it out. Writing it down. Who? Who do you want to be?
Where do you want to go? What do you want to accomplish in your life? What do you want to hold on to? And if this has the ability to detract from that, you know, if you’re willing to roll the dice, still do it. But look over here.
Don’t lose sight, you know. Because if you’re veering off course, come back and find people who. Who know you, who love you, who want the best for you, and can respectfully and politely call you out and say, hey, like I, I just want you to remember, still come over here. You know, you still have a wife, you still have kids, you still got, you know, this over here. That’s what I would encourage.
Chad Franzen 41:18
Yeah, that’s great stuff. Awesome insights. Thank you so much. Hey, it’s been great to talk to you Beau. Thanks so much for your time and all of your thoughts.
Really appreciate it.
Beau Maxon 41:26
Hey. You bet. Chad, it was a pleasure. You have a wonderful day.
Chad Franzen 41:28
You too. So long everybody.
Outro 41:29
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