Franchise Secrets Podcast

A business partnership can be daunting to some—and to others, it’s their means of being able to own a Franchise in the first place. Do you know where you fall on the spectrum? Are you open to a partnership or actively looking for a partner? In this episode of Franchise Secrets I talk about some of the challenges in navigating business partnerships but some of the immense benefits as well. If you’re interested in my journey in the world of franchising you’ll learn all about it in this episode.

Outline of This Episode

• [0:35] What my first partnerships looked like
• [5:55] Working as an area developer and franchise consultant
• [9:00] Work as a franchisee and challenges that ensued
• [16:20] What I’ve done when things don’t go as expected
• [19:55] How to structure partnership groups
• [23:45] Under-promise and over-deliver on your partnership
• [26:20] Characteristics to look for in a partner

Develop who you are in your partnership

My first partnership was with my parents—and they were hesitant to be involved. I asked them to cover the closing costs for my first rental property with the promise of paying them back. I think they dove into it with me because they didn’t want to see me fail. I wanted to prove to them that I had the drive and tenacity to make this work. 

Through the process, I realized what my skills were and where I excelled. Marketing was a really good fit for me. Through the years I’ve honed and developed my strengths. I succeed when I can play the role of invest and advisor. Where do your strengths lie? Would a partnership with someone who complimented you be a good fit? 

Some important takeaways that I’ve learned about a business partnership

I’ve been an area developer, a franchise owner, and a consultant—I’ve had years of practice in my many different hats. I enjoy partnerships and have found them to be extremely effective for what I like to do. Here are a couple of things I think are important when considering a partnership:

• Make sure you have a local player (or hire someone) who has connections and relationships in the geographic area

• Make sure you have clear roles for each partner

• Have a clear operating agreement in place that you can reference

• Learn when an opportunity isn’t the right fit and how to make a timely exit

I cover many more helpful tips—so keep listening!

Make sure you and your partners all agree on what success means

Make sure that your partners have the same mentality and goals relating to the business and its performance. Clearly define who holds what role in the business. Above all, do your best to hire the right people. Hire managers who have the mentality of owners who will do whatever it takes to grow the business you’ve invested in.

In your role, make sure you under-promise and over-deliver. 

You’ve probably heard it before, but it is a standard to live by. When everyone has clearly defined roles and is constantly over-performing you will continue to see success. For me, money is just a byproduct of success. Obviously, success means something different for everyone—so define what that is for yourself. 

What characteristics to look for in a partner

So what do you look for in a business partner(s)? I believe it’s important to go into business with people who have the same goal as you but play different roles. If you want to be the investor and advisor find someone who likes to be involved in the day-to-day. Is someone a better communicator or manager? Partnerships need to be complementary so every aspect of the business is covered.

But be careful to partner with the right type of person. Whether they’re family, friends, or an acquaintance in the industry you have to be able to trust them implicitly. You also need a working relationship with each other that is open, authentic, and genuine—what you see is what you get. If someone doesn’t fit things are only going to get more difficult. So either don’t go into the partnership, or buy out partners who aren’t a good fit for the team. 

Don’t miss this episode all about business partners in the franchise world!

Resources & People Mentioned

• TalkWithErik.com

Connect With Erik

• Facebook
• LinkedIn

Are you wondering if a strategic partnership could benefit your business endeavors? Are there just some skills that you lack that a partner could take on? If you don’t possess all the necessary skills—or even finances required—to be a business owner, consider partnering with someone who does. My guest today, Stephen Kopshaw, gives us insight into 3 different areas of franchising—and doing it with partners.

12 years ago Stephen was a physical trainer working at a Fitness Together location. He had ideas on how to implement business practices differently that he felt would benefit the franchise. He shared his ideas and goals with his client and friend, Lisa Paladino Petersen, hoping to open his own location someday. One day she said, “Why don’t we do it together?” and their partnership was formed. Less then a year later they were operating their location. Now, Stephen and Lisa—along with 4 other partners—own multiple franchise locations, work as consultants, and are operate on the flip side as franchisors. 

Outline of This Episode

• [0:35] I introduce my guest, Stephen Kopshaw, CEO of FIT 36.
• [2:10] How Stephen got his start in franchising
• [6:15] How it all began with friendships
• [11:20] Play to your strengths—let someone else handle your weaknesses
• [14:55] Taking over failing stores = “Turnaround Opportunities”
• [17:10] What do you look for in an opportunity
• [20:55] What do you look for in a good location
• [22:30] The evolution of their partnership
• [25:40] Next steps: Buying out a franchise
• [29:00] Challenges to overcome 
• [32:35] Commitment to transparency and change
• [34:55] Changes in store for FIT 36
• [40:00] Things commonly seen in an underperforming franchise

What can a strategic partnership do for you?

The strictest definition of a strategic partnership is a “relationship between two commercial enterprises usually formalized by one or more business contracts”. So we are going to loosely interpret the term in this instance. The goal is to partner with someone who has experience in areas that you do not.

Play to your strengths—and let someone else handle your weaknesses.

Steve, like myself, is a strategic thinker and succeeds at anything having to do with execution, finding opportunities, and all of the “big picture” decisions. He considers day-to-day management and customer relationships his weaknesses, but they are strengths for some of his partners. The key is to find people who balance the relationship and complement each other. 

What to look for in a turnaround opportunity

Something Stephen and his partners specialize in is taking failing stores—which they prefer to call turnaround opportunities—and helping them find success. They can absolve someone’s liability and help them move on to their next step. Another benefit is that they aren’t on the line for a lot of the typical costs involved with building out a location. So what do they look for?

The first step is to make sure you have access to financials, profit and loss statements, and their advertising/sales process. If you can adequately gauge where the business is struggling and how to address it, it’s a good indicator of future success. A trick they love to use is spending 4-6 hours in the immediate area and playing “secret shoppers” as they check out the competition. The #1 thing that would deter them from buying? A bad location. Want to know more? Keep listening!

A team with many hats: Franchisors, franchisees, and business consultants

Steve and his team originally started as a mastermind group, each taking turns to educate each other on something new. Eventually, they all started relinquishing work they weren’t skilled at to each other. Over time, their relationship evolved into a mutual partnership, with each complementing the other. They knew they could do something bigger with the A-list team they had cultivated. 

They were approached to buyout a Fitness Together location to complement their current one. So they flipped it and built a thriving business while also experiencing growth in their core studio. They tested the waters and dove into the world of Elements Massage—which became another success. Their most recent endeavor was the purchase of the Fit 36 franchise. Keep listening to hear where this new opportunity is taking them. 

Implementing clear communication and transparency

I asked Steve what surprised him the most when transitioning from franchisee to franchisor. Surprisingly, communication styles have been the most difficult roadblock to navigate. Everyone hears and absorbs information differently. What seems like a simple company-wide email relaying information can become complicated as everyone involved interprets the message differently.

Steve and his team are committed to establishing transparency and change as they’ve taken over Fit 36. They want everyone to be on the same page and stay informed. They implement this by sending out a monthly newsletter, running a facebook group, and monthly roundtable calls with the leadership team. If you want to hear specifics of how they’re turning the franchise around, listen to the full episode now.

This episode is full of strategies any franchise should implement with only a few things touched on in the notes—check out the full episode now for all the details!

Resources & People Mentioned

• BCWE Holdings
• Fitness Together
• Elements Massage
• FIT 36

Connect with Stephen

• Instagram
• Steve(at)BCWEholdings.com

Connect With Erik

• Facebook
• LinkedIn

Are you wondering how to find the best franchise for the investment you’re willing to make? Are you looking for an awesome tool to help narrow down your choices? Franchise Business Review is a market research firm that rates and reviews today’s top franchise opportunities. Here to talk with me about finding the right opportunity for you is Franchise Business Review’s CEO, Eric Stites.

As a previous franchisee and fellow entrepreneur, Eric brings a wealth of knowledge to the table. He’s been involved with Franchise Business Review since its inception and knows the ins and outs of the franchise process. He strives to help brands improve franchisee satisfaction while also offering a useful tool for those looking to buy a franchise. Listen to this episode of Franchise Secrets as we talk about franchise validation, emerging brands, and so much more! 

Outline of This Episode

• [0:35] I introduce Eric Stites: CEO of Franchise Business Review
• [5:45] Franchising is a proven concept—but not easy
• [8:05] The importance of peer validation
• [11:00] Using reviews to understand brand culture
• [20:48] How to find success when investing in an emerging brand
• [27:46] Things to consider when preparing to buy a franchise
• [30:37] How franchises feel about information being published
• [35:15] Final words of wisdom and resources from Eric

Franchise Business Review’s Origin Story

The business was started 15 years ago when Eric was working with Dunkin’ Donuts to help connect prospective franchisees with current business owners. Franchisees were often hard to connect with and hesitant to commit time to candidates who may or may not be serious about the validation process. So Eric’s team created a satisfaction survey for franchisees to complete as a means to connect the two sides.

What started as a simple tool for franchise development became an operational tool that they could scale and utilize in every franchise. Since 2005, Franchise Business Review has worked with over 1,100 established brands to bridge the gap between franchisees and candidates. The Review also doubles as a tool to help franchises assess and develop satisfaction among their current franchisees. We also cover misconceptions about franchising in this segment, so check it out!

Choosing the best franchise for you—using peer validation

Franchise Business Review is the perfect resource if you’re researching top brands and trying to decide the route to take. They supply detailed reports of many franchises—covering training and support, core values, financial opportunities, and so much more. Check out the methodology they utilize to determine their Franchisee Satisfaction Index (FSI) score to better understand their process.

All of their data is sourced directly from current owners and operators. You’re able to gain insight from entrepreneurs who have been in the business for years without having to play phone tag with busy business owners. With lists of the top franchises, detailed free reports, what makes the brand unique—and more—they’ve positioned themselves as a top resource for those looking to buy a franchise. 

What to look for in an emerging brand

According to Eric, Franchise Business Review will work with and survey a franchise when it has 10 established locations—which by most standards is still an emerging brand. This allows you to take advantage of their reports if you’re interested in a brand that’s new to the market. So what should you look for when considering a brand that you are unfamiliar with or has a short history?

Make sure you do in-depth research and analysis. Take a deep dive into the Franchise Disclosure Document (FDD) and be familiar with the business expenses. It’s a good sign when the franchise is reinvesting its profit back into the company. Also, look at the team involved—do they have an extensive background in franchising? In business? An emerging brand is a different type of investment, but if you know the risk profile you’re ahead of the game. Keep listening as we go into detail about this important process.

Why your spouse needs to be involved in every step

I started this podcast to be a resource for people interested in buying a franchise who want to invest in learning about the process first. Let’s be honest, most people think they want to own a franchise, but don’t realize everything entailed in owning and running a business. Something that is often overlooked is the impact of business ownership on spouses and family.

Your family needs to be aware of and involved in the process from day one. 

Your level of involvement in a franchise can often be overwhelming when you’re starting. It’s important that you and your family are aware of what owning the business is going to be like. Even in the beginning stages of research and narrowing down franchises available to you, your spouse should be part of the decision-making process—so things aren’t halted weeks down the road. For more than just a snapshot of our conversation, listen to this whole episode of Franchise Secrets now!

Resources & People Mentioned

• Dunkin’ Franchise
• Kona Ice
• FirstLight Home Care
• Orangetheory Fitness
• Planet Fitness

Connect with Eric Stites

• FranchiseBusinessReview.com
• LinkedIn
• Facebook
• Twitter

Connect With Erik

• TalkWithErik.com
• ILoveFranchising.com
• Facebook
• LinkedIn

Have you dreamed of becoming an entrepreneur? Did you grow up working in a family business or just knew at a young age you wanted to own your own business? In a day and age where young adults are catapulted towards college, perhaps there is another way. Here to talk with me today is Matt Tanner, an entrepreneur and franchise owner at the young age of 27. We talk about how he grew up in the business, the businesses he owns, education, and so much more!

Matt graduated from Shenandoah University with a degree in Business Administration and Management. Within 6 months of graduation, he had already purchased his first franchise—Auntie Anne’s. Now he’s a multi-unit franchisee in the process of building out 3 Tropical Smoothie locations in Florida. On top of what he’s already accomplished he’s also opened his consulting firm, Tanner Consulting. This is one episode you don’t want to miss. 

Outline of This Episode

• [0:40] I introduce my guest, Matt Tanner.
• [1:50] How he got involved in franchising
• [5:40] Strategic growth and proper management
• [9:00] All about Tropical Smoothie
• [14:00] To go to College or learn by working?
• [17:55] Next steps for Matt
• [21:30] The art of Acquisition 
• [25:30] Biggest “mistakes” made
• [30:05] Working with athletes
• [33:05] Final thoughts and wisdom

Growing up in the industry is the best education

Matt grew up immersed in the industry from day one. His Dad owned and operated an Auntie Anne’s location in Baltimore, Maryland. He recalls—as an 8-year-old—how he would stand outside his Dad’s shop in the local mall and hand out samples of pretzels or lemonade. Which was a smart business decision on his Dad’s part—you can’t turn down a child handing out free food!

Throughout middle school and high school, he and his brother put in 40-50 hour weeks working with his Dad. He truly embraced being involved in the day-to-day and knows it was a huge learning experience. He was born with an entrepreneurial spirit that he wanted to continue to develop. It’s not something that can be forced, but a drive within you. 

Grow strategically with the right management in place

One thing that needs to be emphasized is that you must focus on strategic growth. Sometimes it’s far better to take a step back, do your research, and wait for the right location instead of grabbing whatever is available at the time. Too often, entrepreneurs are in a rush to build their empire but watch it crumble because they acted with haste.

Because, let’s be honest, more locations are not necessarily better!

A location that is strategically placed could earn exponentially more than 3 locations poorly placed. Matt’s family had built out locations across the US that weren’t necessarily successful or they were in poor geographical areas. They learned the hard way that’s it’s important to have good infrastructure and the right management in place. Matt talks about this more in-depth in our conversation.

Is college education necessarily part of becoming an entrepreneur?

Both Matt and I agree that a college education isn’t necessary to be successful. You’re spending thousands of dollars on education when you could potentially be gaining the same, if not better, experience working in your chosen field. The curriculum in college classes can be outdated and the business world is changing every day. So why not go work for someone for free instead of amassing thousands of dollars in student debt?

Matt did complete a 4-year degree in Business administration but feels he learned more in his first 6 months running a business then he did in school! While he doesn’t regret the experience and values the networking, he knows he would’ve been further ahead if he had dropped out. His brother dropped out freshman year and it turned out to be a great decision for him. Keep listening as we talk about the opportunities available and how you can weigh your education options.

Matt’s love for acquisition 

Six months out of college Matt purchased his first Auntie Anne’s location in Tuscaloosa, Alabama. There was a Tropical Smoothie location in the Midtown Shopping Center across from his business that caught his eye. He spent time chatting with the general manager, who then introduced him to the owner. Within one month, Matt purchased his first Tropical Smoothie location.

His biggest piece of advice? Connect with people. Set up meetings, take phone calls, offer help and advice when needed. You’ll often meet people who are struggling, absentee owners, or for various reasons are on the way out of their business. If you’re putting yourself out there, opportunities to acquire another business or another location will find you.

This is just a small picture of everything that Matt and I covered in this episode. You’ll want to hear the rest for more of his story and where he’s headed with future business endeavors—including working with renowned athletes. Check it out!

Resources & People Mentioned

• Gary Vaynerchuk
• Tropical Smoothie Cafe
• Auntie Anne’s

Connect with Matt

• LinkedIn
• Facebook
• Tanner Consulting
• Tanner Consulting Instagram

Connect With Erik

• Facebook
• LinkedIn

Have you ever wondered if there are key personality traits or routines that successful people have in common? Are you looking for some inspiration to kick yourself into gear? In this episode of Franchise Secrets, I talk with a wildly successful franchisor, Bedros Keuilian. We cover his humble beginnings, the routines that ground him, and the drive needed to build a successful business.

Bedros Keuilian immigrated to the United States in 1980 as his family escaped the Soviet Union. His family was poor and they did whatever it took to survive—even eating out of dumpsters. He vowed that he would do whatever it took to build a better future for himself and his family. Bedros is now the owner and CEO of Fit Body Boot Camp and runs his own coaching business.

Outline of This Episode

• [0:40] I introduce my guest, Bedros Keuilian
• [2:05] Humble beginnings
• [6:25] How Fit Body Boot Camp came to be 
• [14:30] Know that you’re made for more
• [16:35] Find a mentor or way to be mentored
• [22:05] The Ed Mylett and Andy Frisella story
• [25:10] Why college isn’t always necessary
• [31:10] How he manages his calendar
• [36:00] The theory of bilateral stimulation
• [38:20] Why there is no such thing as work-life balance!
• [42:40] The Zone of Genius

The evolution of his franchise—Fit Body Boot Camp

Bedros started his career as a personal trainer and was fortunate to be able to trail Jim Franco. He didn’t realize it at the time, but as he was training Jim, Jim was mentoring him. He learned so much about business as he was coaching! Jim was one of the first people to encourage Bedros to launch a subscription model of personal training. Bedros went on to open 5 studios in California, which he later sold for a profit.

In 2008 he launched his earliest version of his boot camp and by 2010 was selling franchise locations. It was a painful process and mistakes were made, but he learned from them and continued to build his empire. Now, his franchise is closing in on 800 locations, has hit the Inc 5000 list, and was named one of Entrepreneur Magazine’s 500 fastest growing franchises. You’ll want to listen as he talks about why the franchising process was difficult, why you need to make sure you have the right business partner and more!

Why being a control freak can be a good thing

When you hear the phrase ‘control freak’ you tend to think of a very obsessive and controlling person. The type of person you wouldn’t want to be around and don’t want to be. But Bedros points out that being a control freak doesn’t have to be a negative thing. He freely admits to being obsessive about his business and his schedule—and believes it is one of the reasons he is so successful.

You can be relentless, focused, obsessed, a control freak or whatever you want to call it! The important takeaway is that you are driven to be successful. So take that drive and take back control of your life and your business. Allow yourself to embrace your inner control freak. Bedros talks about some of the things he does to control his personal life and his schedule, so keep listening.

The importance of finding a mentor

Learning from others who have walked in your shoes is invaluable. Many great business owners were mentored, coached, or part of mastermind groups. They surround themselves with high achievers. So what do you do if you can’t afford to pay for a coach? Start small, and follow people you want to learn from on social media. Sign up for their email lists. Purchase one of their books.

You want to surround yourself with people who can fill in the gaps you can’t fill.

It’s as simple as that. Bedros offers a 2-day Mastermind 3 times a year for all of his franchisees. It’s completely optional and is an additional extra fee. The franchisees who attend his masterminds are the top performers in Fit Body Body Camp! He recommends seeking out key players that you want to model after. Continue with me as Bedros and I talk about how he sought out Ed Mylett and Andy Frisella, why he doesn’t believe everyone needs to go to college, and prioritizing family. 

Controlling your calendar and maximizing your routine

There are only 4 people who are allowed to add to or edit Bedros’ schedule and he refers to them as his ‘Navy Seal Team’. They take control of maximizing every part of his schedule—back to back meetings, phone calls, etc. He even has them assign work that he can do while he is on a flight. You became more aware of how much time you waste in a day when you begin to take back control and take advantage of every minute.

One practice that he wholeheartedly embraces is getting up at the same time every single day and diving into your morning routine. Too often, we fall into the trap of hitting the snooze button and dozing off again. But according to Bedros, this is teaching your unconscious mind that you are not trustworthy or credible because you don’t wake up when you said you would!

This is all just a snapshot of what the two of us talked about. There is so much more to learn in the rest of this episode with Bedros Keuilian. This is one you don’t want to miss!

Resources & People Mentioned

• Man Up by Bedros Keuilian
• Otis and Charley Play to Win by Andy Frisella and Kevin Cannon
• Fit Body Boot Camp
• Ed Mylett
• Andy Frisella
• Bilateral Stimulation
• Dan Sullivan’s Strategy Circle

Connect with Bedros

• Keuilian Inc.
• Facebook
• Official website
• LinkedIn
• Twitter 
• YouTube

Connect With Erik

• Facebook
• LinkedIn

As business owners we need to create an environment for our team where they are allowed to make mistakes and learn from failure. Too often, people are scared to take initiative because if they fail their jobs and livelihoods are at risk. In this episode of Franchise Secrets, Chris Oakley and I discuss creating a culture where mistakes are embraced as an opportunity to learn.

Chris is a wealth of knowledge in the coaching industry. He has over 5 years of experience working at Dave Ramsey as an All Access Business Coach and a background in a wide range of businesses. Now the owner of his own coaching firm, his personal mission is to help Christian business owners win in the marketplace and help them leverage their influence and resources for Kingdom impact.

Outline of This Episode

• [0:40] Create a culture that embraces mistakes
• [1:35] Cultivate confidence
• [4:45] If you want to get results, do new things
• [5:45] Celebrate trying something new—even if it fails
• [9:10] The concept of micro-failures
• [11:55] Open communication about problems 
• [14:30] Visibility in the performance
• [17:05] Emerging brands makes mistakes and learn from them

Think outside of the box: learn from failure

The #1 characteristic of a successful CEO is confidence. So how do you cultivate that? Chris and I discuss that one of the things that make us feel confident is learning something new. Then, we put it into practice. As you’re carrying out whatever you’re learning and gaining experience, you’re most likely also making some mistakes. 

But we need those mistakes. 

You fall when you learn to ski, right? But you get back up again and get back to the grind. You don’t learn how to play guitar overnight. It takes time and practice to develop a skill. It’s the same with a business! Your employees need to take initiative and grow in their roles. Sometimes, that means stepping out and taking risks.

Create a culture where failure is celebrated

Business owners tend to be taken aback when we tell them they need to allow their team to make mistakes. They’re even more shocked when the suggestion is made to celebrate those mistakes. After all, mistakes can lose the business money, and that’s the last thing they want! But we want them to celebrate and recognize their team for taking initiative and making things happen. 

The last thing you want is to create a culture of fear. Unfortunately, some owners and operators think that the fear of losing one’s job motivates their team to perform higher. Instead, they are so petrified to make a mistake that they’d rather not step out on a limb and try something new. Keep listening as we talk about why this isn’t what you want!

Micro-failures & setting boundaries

I like to use the term micro-failure to refer to a small mistake—something that is easily rectified. So if we want to allow our teams to take initiative, where do we draw the line? Often, the difference between a small and a large failure is the financial impact. Did the mistake cost the company a lot of money? Is it also taking a lot of time to rectify?

So what is an owner supposed to do?

Set time and money boundaries. So you’ve decided you want your team to be creative, be strategic with problem-solving, and you’re allowing them the risk of making a mistake. Before they attempt something new, have them think about the impact their decision will make. If the decision goes south, you want to know that fixing it will be affordable and won’t consume too much time.

Encourage communication and innovation

Encourage each individual team member to communicate with you as they continue in a new endeavor. The more they communicate, the easier it is for you to follow-up and make changes as needed. Small mistakes can be easily mitigated because you were aware of the steps they were taking along the way. This strategy allows your team members to feel confident, feel that you trust them, and feel secure in what they’re doing.

Stepping out and taking a chance is where most innovation begins. We want to encourage our franchises to grow, to innovate, and above all to learn from failure. I don’t claim to know everything—but I’ve learned from the mistakes I have made, and am a better individual and business owner for it. Listen to the whole episode as Chris and I discuss in depth creating a culture of innovation where your team isn’t afraid of failure. 

Resources & People Mentioned

• Capitalism in America by Alan Greenspan and Adrian Wooldridge
• Zero to One by Peter Thiel and Blake Masters

Connect with Chris

• LinkedIn
• Facebook
• Coach on Demand

Connect With Erik

• Facebook
• LinkedIn

If you’re looking to build a successful team of employees for your business, sometimes it’s hard to know where to start. Do you hire based on the education and experience of the candidate? Or do you consider their work ethic and their personality? There are many ways to assess whether or not you’re hiring the right person. In this episode of Franchise Secrets Chris Oakley and I talk about building the right team from the top down. 

Chris Oakley is my guest for this episode and is a wealth of knowledge in the coaching industry. He has over 5 years of experience working at Dave Ramsey as an All Access Business Coach and a background in a wide range of businesses. Now the owner of his own coaching firm, his personal mission is to help Christian business owners win in the marketplace and help them leverage their influence and resources for Kingdom impact.

Outline of This Episode

• [0:40] Introduction of Chris Oakley
• [4:30] Go against the grain and make different choices
• [8:50] Hiring your key employee
• [13:00] Character traits to look for in a manager
• [16:30] Favorite interview questions
• [19:15] Bringing personality assessments into the mix
• [23:00] What do you do when you’ve hired the wrong person?
• [28:15] You win with relationships

Go against the grain to build a successful team

One of the best things you can do is think about the big picture, right? As a business owner, you know that teams are successful when they have good leaders. So hiring the correct management for your franchise location can be the key to growing your business. The right leadership also allows you to focus your attention where it needs to be.

One of the top things you can do is hire someone who is humble, willing to learn, and understands and is passionate about the vision of the company. 

Go against the grain of what other businesses are doing and give yourself time to vet the applicants. Find an employee you trust to sort through applications, conduct initial interviews, and summarize the choices for you. Then take your time with the interview process, getting to know the candidate, and do not make hasty decisions. Let other companies make rash decisions and hire the person desperate for a job. 

Work ethic or experience: which is more important?

Obviously, experience and the skill-set for the job are something to look for in a potential hire. But is it the most important factor?Not necessarily. Experience in the field is great, but someone who is teachable and eager to learn is even better. A huge factor for Chris is simple: he has to really like the person he’s interviewing.

His hiring motto is that they need to be “hungry, humble and (people) smart”. 

Take this opportunity to get to know the people you’re interviewing. What are their dreams? What is their higher purpose? Are they good with people? It’s important to gage who they are and what drives them. Continue listening as Chris and I cover some of the best types of questions to ask, and the responses to look for.

Bring personality assessments into the mix

So how do you know the right questions to ask? How do you draw out stories and examples that you want to see in a key employee? This is where we highly recommend utilizing a personality assessment. One that I use is Color Code—but there are many others. You can use Myers-Briggs, DISC, Enneagram, or whatever assessment of choice.

Just don’t choose one that is too time-consuming. You want applicants to be able to do it quickly and not feel pressured for time. You also want to choose something where you’re able to understand the results and use them to decide what questions to ask. It’s a good look at their strengths and weaknesses. Use that knowledge to your advantage to hire the right person for your team. 

What do you do if you’ve made a poor hiring choice?

It happens, and when it does—I’m not gonna lie—it sucks. When you hire the wrong person, productivity can tank. The output of your time can be affected, and your business may suffer. Our gut instinct is to immediately remove the person immediately. But this is where you need to take responsibility. If someone wasn’t the right fit for the team, you’re the one that made the decision. So what do you do?

Take the steps towards corrective action. You can’t just fire them without giving them the chance to rectify the situation and make steps towards change. Develop a plan with them, communicate along the way, and wait. You may still end up letting them go—but it will not be a surprise. It also shows your whole team that if a mistake is made, they have a chance to redeem themselves—as long as they are willing to learn from those mistakes.

Listen to the whole episode as Chris and I dole out some great advice, some of our favorite interview questions, and some funny personal stories you don’t want to miss!

Resources & People Mentioned

• The Principle of the Path by Andy Stanley
• Radical Candor by Kim Scott
• The Ideal Team Player by Patrick Lencioni
• The Color Code personality test
• Myers-Briggs Type Indicator (MBTI) personality inventory
• The DiSC personality test
• The Riso-Hudson Enneagram Type Indicator 

Connect with Chris

• LinkedIn
• Facebook
• Coach on Demand

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If you’re looking at funding options as a new franchisee and are struggling with the franchise financing options available to you, we’re here to tell you there are options. You can certainly go a traditional route through a bank, but sometimes it just isn't possible. Luckily, there are more non-traditional routes available to you. In this episode, I talk with Apple Pie Capital Chief Development Officer (CDO) Ron Feldman about the ins and outs of financing, franchise validation, resources available to you—and more.

Ron started in the franchise industry when he and his wife purchased into The Goddard School Franchise. He has also worked as the Chief Development Officer at FRANdata and was the Chief Brand Strategist with Siegel Financial Group. Ron gives us insight into his unique and extensive background in franchising that you don’t want to miss!

Outline of This Episode

• [0:41] Ron Feldman Introduction
• [5:53] What is Apple Pie and how is it different?
• [11:21] What does Apple Pie look for in emerging brands?
• [13:50] Definition of an emerging brand
• [18:20] Resources for franchisees
• [21:55] How do you look at item 19?
• [24:00] Validation is absolutely critical to the process
• [30:42] Successful franchises and what to look for
• [35:40] Combining brands and resources
• [42:57] Why you need a professional team surrounding you

What is Apple Pie Capital and how is it different than traditional lending?

I first came across Apple Pie Capital when I had already launched two of my franchise locations with Sola Salon Studios—and then the SBA refused to finance the 3rd. Our lending partner was gone. I was an established franchisee with an established brand but was suddenly forced to find a different option. This is where a non-traditional franchise lender became my solution and could be yours as well.

They provide a unique online platform that is a streamlined and simple solution for someone in the franchise industry to source funding. One of the top lenders in the business, their focus is to lower barriers to entry. They do so by handling everything from start to finish, beginning with one easy online application, then laying out all of your options. They actually want to help you achieve your goals and to grow smartly. They are one of the few lenders who only work in franchising. 

Why the difference between a “start-up” and “emerging brand” matters when it comes down to Franchise Financing

If you’re looking at buying a franchise but want to jump in on an emerging brand, there are some things you should consider. First, you want to invest in an emerging brand and not a start-up. For the purpose of this explanation, a start-up is a franchise that has fewer than 25 franchise units. An emerging brand is considered a franchise with 25-100 units open and running. If a franchise has sold over 100 units, they are likely no longer relying on the franchise fees for their overhead costs (which is crucial). 

So why does this matter?

You need to give a particular franchise time to become a proven brand. Apple Pie is more willing to lend you money faster than any other lender—but they also need a way to measure their investment. If a franchise has 10 or more years of operating history or they have 25 units open for 3+ years APC considers them an emerging brand that they’re willing to dive into with you. Keep listening to our conversation as we cover the details, and talk about some of the resources available for new franchises.

As an emerging brand, you’ll want to take advantage of networking opportunities

As an emerging franchisor or someone who’s bought a new franchise, you’re going to have a lot to learn. Some great opportunities for learning come from conferences geared towards franchisees. The International Franchise Association hosts a conference geared exactly towards those just starting out in the market. So if you’re newer in the industry, this one is a great place to start.

A couple of other resources that Ron and I both recommend include the UnConference and the Springboard conference. They are founded and hosted by some of the most knowledgeable people in the industry. Events like these can be a great way to learn from others what to do, what not to do, and a way to make lasting connections. Keep listening for another great way to learn the ins and outs of franchising.

The importance of the validation process for the potential franchisee

One of Ron’s favorite quotes is by Anthony Martino, “franchising is simple, as long as franchisees make money”. While funny, it’s completely on the nose. Apple Pie Capital utilizes research from FRANdata as well as their own personal experience to validate the franchise you’re buying. They’re able to get a lot of data that you as the franchisee don’t have access to.

Likewise, you need to be diligent with your own validation process, which we cover more in-depth in this podcast. You need to reach out to current franchisees and question them about every part of the process. Ron shares that they got more calls from prospective franchisees for The Goddard School when they sold than any of the 10 years they operated it. Listen to the rest of the episode as he explains why this was so smart and the right questions to ask.

Resources & People Mentioned

• Anthony Martino
• Apple Pie Capital
• Bernard Siegel
• Denise Thomas Apple Pie Capital CEO
• Emerging Franchisor Conference
• FRANdata
• Goddard School Franchise
• Grow Smart, Risk Less by Shelly Sun
• International Franchise Association (IFA)
• Peter Cancro
• Springboard Conference
• The UnConference

Connect with Ron Feldman

• LinkedIn
• Apple Pie Capital

Connect With Erik

• Facebook
• LinkedIn
• TalkWithErik.com

If you’re looking at creating a strategic plan for your business, you’re taking the needed steps towards success. Is strategic planning a concept you are familiar with? Do you need direction on how to get started? Listen to this episode of Franchise Secrets as we discuss the value of relationships and the two things you must prioritize in strategy development while also designing the life you desire.

Chris Oakley is my guest for this episode and is a wealth of knowledge in the coaching industry. He has over 5 years of experience working at Dave Ramsey as an All Access Business Coach and a background in a wide range of businesses. Now the owner of his own coaching firm, his personal mission is to help Christian business owners win in the marketplace and help them leverage their influence and resources for Kingdom impact.

Outline of This Episode

• [1:27] Chris Oakley’s Origin story
• [3:14] The implicit value of relationships
• [6:25] What high-level coaching looks like
• [13:05] The two questions to ask
• [16:30] Accountability is key
• [20:45] Design the life you want

Creating a strategic plan starts by developing a mission statement

When you begin working with a high-level coach, one of the first things you’ll work on developing—if you haven’t yet—is your mission statement. This doesn’t just apply to your business. On a personal level, you have a limited amount of time to make an impact on the world. So we talk about really honing in on your personal mission statement and then letting that drive your goals for your business.

Then you take that mission, develop it, and focus on setting up a rhythm of execution. Strategic planning is all about choosing a direction and what you specific things you are going to invest your time in. A coach can really help you prioritize the steps you need to take, guide you through those steps, and help you choose how to execute them. It’s a never-ending process of learning and growing. Keep listening as we discuss this concept. 

The two questions that should drive your strategic development

Question #1: At the end of your life, what do you want to be known for? While this is more of a personal development note, Chris truly believes that knowing the impact you want your life to have will drive how you want to run your business. The relationships you value, what you prioritize, and the practices you build your business on are all impacted by who you are. What legacy do you want to leave?

Question #2: A year from now, where do you want to be? A good coach needs a target of where you want to take your business. Industries are constantly shifting, and while it’s important to plan ahead, you can’t look too far into the future. If you narrow down where you want your business to be in 365 days, it lays the groundwork for what to prioritize. Chris and I continue to cover how to prioritize things quarterly and how to know what to focus on.

Social pressure can be the “Secret Sauce” to accountability

Creating a strategic plan can only get you so far—you actually have to take your plan and implement it. And all the planning in the world gets you nowhere if you don’t execute it. Ideally, you’ll have a coach in place to meet with weekly to cover goals and execution. But what do you do if a business coach isn’t a tool you have in place?

Focus on accountability. 

And you know what? Making your goals public can be the “secret sauce” to your success. It’s a lot harder to fail when you know the world is watching, and for some, it can be a huge motivator to succeed. Whatever route you take, you need someone to keep you accountable and help you reach your goals. It’s all about removing excuses and executing your plan.

Creating a strategy helps you design the life you desire

So you’ve got a strategy in place for the growth of your business, you’ve laid out what you’re prioritizing, and you’ve got accountability in place. As you build a rhythm of execution, you’ll begin to notice wins. You’ll experience ups and downs. The important thing to remember is that you’re building consistency, and with consistency change begins to happen.

You’re now strategically building your business and should see significant change. Ultimately, Chris points out that strategic planning allows us to design the life we want. You’re no longer just letting life happen. You want to build a legacy and make an impact, and that starts with creating a strategic plan and a focus on what really matters.

Resources & People Mentioned

• The Principle of the Path by Andy Stanley
• The 4 Disciplines of Execution by Chris McChesny, Sean Covey, & Jim Huling
• Clockwork by Mike Michalowicz

Connect with Chris

• LinkedIn
• Facebook
• Coach on Demand

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If you’re looking for a franchise opportunity, consider investing in a business turnaround—an underperforming franchise can make money in the right hands. If you’ve got experience and the necessary drive and willpower, it can be a great opportunity. Listen to this episode as we talk about purchasing underperforming franchises, changes that need to be made to management structure, and how to make a failing franchise profitable. 

Kevin Easterly got his start in flipping houses and purchasing rental homes and apartments. He was given an opportunity to purchase a few struggling franchise stores. Now he’s created a portfolio of 10 franchise locations with Club Pilates and CycleBar as well as over 105 rental properties. Listen to this episode as we talk about how took underperforming franchises and turned them around.

Outline of This Episode

• [2:30] Kevin’s start in franchising
• [8:10] The mindset you should have buying into a failing location
• [12:38] What day #1 at an underperforming location should look like
• [17:47] The interview process & hiring new staff
• [22:38] Where Kevin’s investments have taken him
• [26:34] Raising Capital and structuring a fund
• [31:55] What Kevin would have done differently
• [38:38] Advice for those who want to sell and those who want to buy

The #1 thing to consider when looking at franchises for sale 

When Kevin was given the opportunity to purchase a few locations of Club Pilates, he dove in head-first. While he had a good mind for business and this worked out for him, he definitely recommends starting small and building some experience in the industry. There was one thing he learned quickly:

Location. Location. Location.

You’ve probably heard it said a million times, but in the case of retail fitness, it holds true. His first purchase was in the back corner of a shopping center. If he had done more research ahead of time, he would’ve invested in something in a better location. He ended up spending more money, but learned a lot in the process.

When buyouts and business turnaround opportunities align

At the time Kevin bought into Club Pilates, the franchisors were pretty absent. There was little support from the top and he had to embrace the ‘fake it til you make it’ mentality. Shortly after he bought-in, the entire franchise was bought out by Exponential and they began to turn things around. They called him out on things he was doing wrong, but also set up good business practices.

Here’s the takeaway: If the location is struggling and there’s little to no support it creates a downward spiral. If a franchisee has no support, it trickles down to the management and the staff—creating a snowball effect that will take time to fix. “The fish rots from the head down” isn’t far from the truth. Come in with the mindset that big changes will need to be made, including restaffing. Keep listening as we talk through the issues you may face and how to overcome them.

The art of takeovers and makeovers

So you’ve talked with the franchisee about why their location isn’t performing well. Perhaps a family issue arose, they had disagreements with their partners, or they just didn’t know how to operate. Whatever the reason, you’ve decided the issues are things that you can overcome. You’re ready to take on a challenge, and make an investment into what could be a great opportunity. So you take the leap and decide to buy out the franchisee. But... now what do you do?

Meet with the management, meet with the staff, and truly assess why they are failing. Ask yourself, what’s going right? Who are the key employees holding it together? But remember that you’re coming in to fix a broken system—and it’s time for a makeover. Do whatever you can to revamp the customer experience. More often than not, new ownership is well received because positive changes are being made. Continue with us as we talk about hiring new staff and what you can do to incentivize the workplace.

Upping your marketing budget can be a catalyst for improvement

Oftentimes when a franchise is failing, they begin to try and cut costs wherever they can. They let staff go, or lower their marketing budget, or cut it all together. These are all big mistakes. Instead of letting good employees go, motivate them. Instead of cutting marketing, invest in it. You have to convince members and customers that things will be getting better, then show them. 

If you don’t specialize in marketing, add someone to your team who is an expert. Send them to events or bring some to your location. Have them bring in sponsors. Whatever you do, you have to understand that you got a deal on an underperforming location, so it’s going to take a little monetary investment to turn it around. Listen to the rest of the episode as Kevin and I talk about raising capital, tax strategies, and making the right investments. 

Resources & People Mentioned

• Club Pilates
• CycleBar
• Make Big Happen by Mark Moses

Connect with Kevin Easterly

• Kevin’s Facebook Group: 10x Apartment Investing And Franchise Mastery
• Facebook
• LinkedIn
• Website: Apollo10x

Connect With Erik

• Facebook
• LinkedIn