Franchise Secrets Podcast

This episode is the second in a two-part series all about buying a franchise! In the first episode, we covered everything from how to start the process, to understanding the financial model and being able to intelligently converse with franchisees. Listen to this episode, with Lance Freeman, as we continue our discussion covering validation, ‘Discovery Day’, making a decision, and buying a franchise. 

Outline of This Episode

• [0:40] Wrapping up the validation process
• [1:05] Moving on to Discovery Day
• [4:30] Stories about getting kicked out of Discovery Day
• [10:38] The hard questions to ask
• [12:23] Issues that arise when you’re competing for a territory
• [18:40] Preparing funding for discovery day
• [21:48] Have a franchise attorney look over your agreement
• [25:26] What happens when you’re at the finish line
• [32:56] WHo has more to lose? The franchisor or franchisee?
• [35:47] Parting words of wisdom

From the validation process to Discovery Day

Validation is where the rubber meets the road—you’ve been conversing with franchisees and have a good concept of the brand and the business. You’ve hopefully met many of the people you could be working with. At this point, you should have a good idea of whether or not you want to move forward to the next step, which is called Discovery Day.

It’s typically a 1-2 day event where you meet with the executive team and CEO. Sometimes your spouse is invited to join. They want to get a good feel for who you are and if you have the mind for the business. A good representative or franchise consultant will only present you as a good fit for the company if they believe you are. If you make it to this part of the process, it’s time to take things seriously.

The Do’s and Don'ts of Discovery Day

You would be surprised how many people come into Discovery Day wholly unprepared and unprofessional. From hitting on team members to getting wasted, Lance has seen it all. Many people dig themselves a hole by being combative and argumentative. If you’re a professional and serious about the opportunity you’re being given, this is not the time to act like you’re at a college frat party.

Also remember, this process is a two-way street.

A candidate can do really well over phone calls and email communication but completely fall apart at the seams in-person. So what can you do to not be one of these people? Keep your anxiety and nervousness in check. Come prepared with solid questions, a willingness to learn, and show genuine interest in the company and people. This isn’t the time to play it cool and hide your interest. They want to feel you want to be there!

Be prepared—you may have competition for your territory

Though it may sound like I’m pushing a sale, I’ve started warning clients if they will have competition at Discovery Day. Sometimes, there are multiple candidates who would be a great fit for the franchise vying for the same territory. It’s better to know going in then be blind-sided when you see one or multiple other people show up. The hardest part is that an existing franchisee may swoop in and buy up the territory you were interested in. Unfortunately, when this happens, a franchisor is more likely to trust and go with their current successful franchisee.

So if you’re up against stiff competition, what can you do to set yourself apart? You can come prepared with existing funding, showing that you’re pre-approved for a loan. Ask relevant questions that show a depth of knowledge about the industry and their franchise. Be respectful, be positive, and do not be negative or combative. Listen to the rest of the episode as we talk about how to land your perfect franchise deal and what you can do if an opportunity slips through your fingers.

The Final Steps in Buying a Franchise

So now Discovery Day is over and it went well. No one was competing for your territory, and the franchise let you know they’d love to have you on board. At this point in the process, you should have learned as much as possible and now feel comfortable with the business. You’re nervous, excited, and 99% sure you’re ready to move forward. So what is your next step? What should you expect?

One recommendation is to do a legal review. Sit down with a franchise lawyer (not a bankruptcy or criminal lawyer) and review the franchise agreement/contract—make sure you understand what it’s saying and that there is no concerning phrasing to be questioned. If everything checks out and you’ve taken a couple of days to make sure this is the deal for you, accept the offer and buy your first franchise! Join us for the rest of the episode as we talk about cold feet, who has more to lose, and parting words of wisdom.

Resources Mentioned

• Franchise Disclosure Document
• St. Gregory Development Group

Connect with Lance

• LinkedIn

Connect With Erik

• Facebook
• LinkedIn

As a business owner in the beginning stages of starting a franchise, how do you know when to outsource franchise development? Do you have a few locations and you want to focus your time and energy on your current franchisees? Do you have a quality regional developer? In this episode of Franchise secrets, we chat with Ryan Zink about your options: to outsource or not.

Ryan Zink had his start in the franchise industry with General Nutrition Center (GNC). After he grew his territory to be among the highest in revenue production in the county, he switched gears. He became a supplier for GNC working with NDS Nutritional Products. In 2005 he co-founded Complete Nutrition—which grew to over 200 locations in just 5 years. Listen to the podcast as we talk about his newest business venture, Franchise Fastlane, a Franchise Sales Organization (FSO).

Outline of This Episode

• [0:40] Introduction to Ryan Zink with Franchise Fast Lane
• [3:05] Why he kept working after he sold his franchise
• [5:30] What type of brands would prefer this outsourcing route
• [9:25] Advice for someone struggling in the early phases of franchising
• [13:05] Risk versus reward with a new franchisor
• [14:50] Is an FSO a good fit for a brand that wants growth?
• [17:41] Questions Ryan always asks current franchisees
• [21:15] Different types of business models that hold value
• [26:35] How Ryan’s company decides to work with a given franchise
• [29:30] What is the benefit of going through FFT versus direct through a franchise?
• [32:00] What to look for in a franchise
• [36:30] Discovery Day
• [37:40] Things you want to know
• [38:35] Best business decision Ryan has ever made

Why would you want to consider outsourcing franchise development?

As an emerging franchisor, the process of franchise development can seem daunting. Maybe you don’t have a regional developer in place that can help build out your franchise. Or the expansion you’re looking for just isn’t happening. But the number #1 reason we see franchisors looking to outsource development is that their passion lies in supporting and building relationships with their current franchisees. And you know what? This is 100% how it should be.

When you invest in training and relationships with your existing franchisees you have a greater return on your investment. This is where Franchise Fastlane would come in as an FSO. The company acts as an extension of you. They would do the research and the work to find you quality franchisees to help take your company to the next level. Listen on as Ryan and I discuss franchise development and his passion behind founding Franchise Fastlane.

Things to consider in the beginning phases of your franchise

There are very few people who actually enjoy the development process—you have to be built for it. Your biggest challenge when diving in is deciding on what kind of growth you’re looking for. The biggest con may be that you have to be primed for the rapid growth of your business. If you just aren’t ready for that, odds are an FSO may not be the best fit for you. Ryan recommends, instead, to start with your close friends and family who trust you and your business model.

They can be the early pioneers that test your process and validate that it can be profitable.

You have to consider that there are a lot of risks that have to be assessed for those buying into a new franchise. Your brand isn’t recognizable yet, so are they going to have to invest in marketing? Will they recoup their additional investment in infrastructure? All of these things can make it difficult for you to recruit franchisees. But if you have a great system in place and are ready for growth—but just don't have the sales force to do it—definitely consider outsourcing your growth. Keep listening as we talk about the options in-depth.

A Franchise Sales Organization that is doing its job will make sure your business is a good fit

If you’ve already established that you are ready to roll out nationwide, you’d take the next step. The franchise consultant or sales organization will thoroughly vet your company to make sure they can actually help you. They look for things such as sufficient experience in franchising and if you can monetarily support the onboarding franchisees. Ryan’s team would then spend ample time with your current franchisees. They want to know if progress is being made with your franchise.

They will cover every inch of your business model. They will learn the ins and outs, the good and the bad, and where attention may be needed. A FSO also needs to understand the time commitment a franchisee would be making as well as profit expectations and whether or not those were met. If you don’t have set processes and practices in place, you may need to go back to the drawing board and get a better plan in place. Remember, they have to not only be able to pitch your franchise to a candidate, but also find the best fit for your team culture. Continue listening as Ryan and I discuss what systems they’re looking for and types of businesses they would lean towards working with.

What a Prospective Franchisee should keep in mind when going through the development process

If you’re an entrepreneur hoping to buy into a franchise, what would be the benefit of going through an FSO? While many people prefer to go directly through a franchise, you need to remember this: 60% of inquiries about a franchise opportunity go unanswered. An FSO or consultant is vested in the franchise they’re working for, but also passionate about finding great franchisees. You will get the time and attention you deserve from us, guaranteed.

We are doing the exact same job a regional developer with a franchise would be doing but not directly working within the franchise. Keep in mind that we’ve also already done all of the hard work up front—we know if this is a good organization for you to buy into. We’ve thoroughly vetted them, understand their company culture, and are uniquely positioned to be a resource for the franchisor and prospective franchisee. It isn’t just about the money. We also want to get to know you, who you are, what your experience is, and how involved you want to be. Keep listening to the rest of the podcast as we talk about more things you’d like to know—and the best business decision Ryan’s ever made.

Resources & People Mentioned

• Franchise Fast Lane

Connect with Ryan Zink

• Franchise Fast Lane
• LinkedIn
• Facebook

Connect With Erik

• Facebook
• LinkedIn

In this episode of Franchise Secrets, we will talk about the step-by-step process of buying a franchise. Are you ready to purchase a franchise and want to know what the process looks like? Do you know what information to look for—and what they are looking for from you? From differentiating yourself from the crowd as a possible franchisee to understanding the franchise disclosure document, we have you covered with this insiders guide!

Lance Freeman will be joining us today as our expert in the industry. Lance has navigated every area of the franchise sales process: working as a franchisee, a regional developer, and now President of Franchise Development at St. Gregory Development Group. This wealth of experience makes him uniquely qualified to walk us through the steps. Listen to part one of our two-part series with Lance now!

Outline of This Episode

• [0:30] introduction of Lance Freeman
• [3:27] Differences between the two lead types in franchising
• [6:45] The initial step: speaking to the president of the brand
• [10:00] The purpose of the initial phone call
• [15:33] Understanding everything entailed in your initial investment
• [19:50] Have a good understanding of your budget when you talk to a franchisee
• [23:10] The best way to become comfortable with the financial model

The two paths you can use to find franchise opportunities

The first path—and possibly the quickest way—is to do a google search and locate franchise opportunities in your area of interest. Or perhaps you have a specific business you’ve wanted to become a part of. This is a more organic way of beginning the purchasing process. If you reach out to a particular franchise at this point you’ll most definitely feel as if you are being sold a product.

The second means of locating a franchise opportunity is to reach out to a franchise consultant. If you’re newer to the process this can be a great step. They typically have connections in the field and experience doing exactly what you want to do. A consultant can help point you in the direction of the best fit for you. Listen on as we talk about the two options and help you decide which route to take.

The first step you’ll take when seriously considering buying a franchise

The beginning of this process can be very intimidating—it’s usually a conversation with the president of the brand you’re interested in. You need to look at this conversation as an immediate opportunity to gain insight into the business. More importantly, the president will want to get to know who you are, what your experience is, and what qualifies you as a prospective franchisee.

You want to be prepared to discuss yourself in-depth, but also do your research into the brand. They want to speak to a candidate who has some knowledge in the business even if they are new to the entire process. A willingness to do hard work up-front and prove you are able to learn can go a long way. Keep listening as we discuss some of the things you can do to stand out in a selective process.

Understand the financial model of the franchise you’re interested in

The next step in the process is understanding the economic model for the business. A franchisor is required to provide you a Franchise Disclosure Document (FDD)—which we talk about on this podcast. It contains all the legal things you need to be aware of. Section 5 covers the initial fees that may be incurred.

Section 7 includes everything entailed in the initial investment of the business.

Familiarize yourself with this document and this section. When you reach out to franchisees you can and should be able to discuss this in-depth. Understanding the numbers up front will act as good talking points and prove that you’re more than just a novice asking questions. Continue listening as talk about the sections in the FDD and how you can best understand them.

Reach out to Franchisee’s and learn as much as you can

When reaching out to someone who owns a franchise in the brand you are interested in, make sure you are accommodating and respectful of their time. Ask them if they’re able to squeeze you into their schedule. Be flexible. Remember, they are taking time out of their work or personal life and devoting it to you! When you connect with them be sure to ask specific questions.

No one wants to hear, “So what do you make in a year?”

Not only is it vague, but there is no good answer to that question because there are too many variables. Instead, focus your questions on what the role looks like day-to-day. How much time should you expect to invest in a week? How much support do you receive from the franchisor? Do you have a good understanding of the initial investment? Keep in mind, franchisees are mentally evaluating you as well. The more knowledgable you are, the more you stand out as a potential addition to their team. Listen to the rest of the episode as we cover the important questions to ask and what they are looking for.

Resources Mentioned

• Franchise Disclosure Document
• St. Gregory Development Group

Connect with Lance

• LinkedIn

Connect With Erik

• Facebook
• LinkedIn

When researching franchise opportunities an important role for you to understand is that of a regional developer (RD). They are sometimes also referred to as area developers or master franchisors. The role is somewhat of a hidden gem—the opportunity to work in this position is hard to come by. So what role do they play in the realm of franchising? Why is it so exclusive? Listen to this episode with special guest Mark Johnson as we delve into the world of regional developers.

Mark Johnson has been in the franchise industry for well over 20 years. He developed the Area Development model for Liberty Tax Service, helping them become one of the most successful franchise models to date. Mark was one of the first people I met in franchising and I learned so much valuable information from him—and he was willing to invest his time in me. We are privileged to have him join us today to impart his wealth of knowledge.

Outline of This Episode

• [0:35] Introduction to Mark Johnson
• [6:57] Backstory on Area Development/regional developers
• [10:30] What is a request for consideration
• [12:15] Go into franchising to create value
• [13:40] The Evolution of regional developers
• [16:15] Is it skill-set or luck when acquiring the best quality RD’s?
• [19:30] Advice for choosing between a franchisor or RD role
• [22:30] regional developer programs
• [23:25] Buy out your RD’s at a fair price
• [26:35] Recognize there are ebbs and flows in everything

Area Development—creating uniformity where there was none

A regional developer (RD) is someone who purchases an agreement with a franchisor, giving them the exclusive right to build and develop locations for this franchise within a certain geological area. Mark was one of the first people to research Area Development and create actual value in the role.

Too many franchises didn’t have the right kind of AR’s in place and didn’t develop uniformity across their platform. Their franchise systems were failing because of the lack of structure. Mark was instrumental in the implementation of a better system, and it showed as he grew his franchises. Continue listening as we dive into this concept and talk about how he cultivated such a successful system.

Your role as a regional developer should be to create value and build relationships

Obviously, your goal as an RD is to create value by means of cash flow. However, something that needs to be equally emphasized is the importance of relationships. You are helping franchisees build out locations, implement processes, and training them to be the best at what they do. It is a unique opportunity to mentor and cultivate a network of properly trained leaders.

You hold a lot of responsibility in the success or failure of the franchise locations being developed. Your desire should be to build positive relationships so that you not only have success—but build a network of people who vouch for your track record. Listen on as we discuss this topic in detail.

Franchisors want to surround themselves with a championship team

On the flip-side of the equation, if you’re a franchisor considering utilizing the area development model for your business there are some key qualities you should look for in your RD. Not only do you need to consider their net worth and value they add, but you want to be aware of their skillsets.

You want to surround yourself with a championship team of top performers in the industry.

Is your RD candidate good with people? Do they have a passion and a drive to get things done? Are they a good fit for the team you’re building? Develop criteria that you use to determine who will be the best fit. This is a great way to ensure the growth of your franchise. Keep listening as we cover advice for choosing between starting a franchise or working as a RD as well as risk versus reward.

Know when to hold ‘em and when to fold ‘em

There are ebbs and flows in every business—and similar to the stock market—you need to carefully consider when to sell your agreement. Track the valuation of your area, and don’t hold on too long. Learn to develop a sixth sense of when to let go, and then do it. Conversely, as a franchisor, be sure you are buying out your RD at a fair market value. Listen to the remainder of the podcast as we talk about the entrepreneurial spirit and the hustle required to make these roles work.

Resources & People Mentioned

• FranchiseThis.com
• Book: Rich Dad Poor Dad

Connect with Mark Johnson

• LinkedIn

Connect With Erik

• Facebook
• LinkedIn

Sourcing a franchise location and learning to understand how a commercial lease agreement works can be daunting. The technical jargon can be overwhelming—and these agreements are riddled with things you need to know. On this episode of Franchise Secrets, I interview Eric Finkelstein and we talk about everything from crafting your Letter of Intent to finessing the final lease agreement itself.

Eric is a commercial real estate attorney at the firm of Chiesa Shahinian & Giantomasi. He graduated from Boston University and Rutgers University School of Law. With years of experience under his belt, he is a wealth of knowledge for his clients and a valuable asset. He’s joining us today to give you some insight into commercial real estate!

Outline of This Episode

• [0:35] Introduction of Eric Finkelstein
• [3:45] What a Letter of Intent should contain
• [7:08] Jumping into details about a commercial lease agreement
• [12:15] Assignment and subletting
• [15:49] Covering non-competes: why everyone wants them
• [20:30] Educate your landlord on your business and how it works
• [21:25] Sound mitigation issues to consider
• [25:20] Things to consider in the tail end of lease negotiation
• [27:45] Tenant improvement dollars (TI dollars) and free rent
• [32:40] What a tenant should be aware of if their landlord changes
• [34:10] What happens when the property you lease is reassessed

The Letter of Intent is a proverbial handshake—not a binding contract

A Letter of Intent (LOI) is typically something you or your broker will be drafting as a sort of template for your lease. You’re laying out the groundwork for the lease agreement you would potentially be signing. It’s also a time-honored way of letting your potential landlord know you are taking this seriously. The final LOI could include items such as rent structure, time-frame of your build-out, permitting, and other pertinent information.

Remember—it is not a binding contract.

However, the more you lay out in your LOI, the more groundwork you’ve done for your attorney when it comes down to navigating the lease. Landlords will take what you’ve spoken about and laid out in that letter and give it to their attorney’s to draft a lease agreement. In turn, once you receive the initial lease agreement you’ll go over it with your attorney. Listen as we talk about some of the details associated with this letter.

Understanding the basics of a commercial lease agreement and what you should fight for

As a future tenant, you have some leverage in negotiations. When you take the lease draft to your attorney, be prepared. Immediately tell them what matters to you and what doesn’t. This is a great way to save time and money on legal bills upfront. What within the lease could be a deal breaker for you? What do you need to have changed in order to make the deal work? Have your attorney walk you through what is important and avoid cumbersome legalese. Continue listening as we talk about the unexpected things that impact your leveraging power in a lease agreement.

Make sure certain remedies are built into your lease agreement

A landlord needs to build some protections into the lease so that down the line, they are still getting paid. On the flip-side, you want to make sure that this agreement is also protecting your future. It may not be your intent now, but if there is potential to sell your business make certain there is an exit strategy built into your lease. Perhaps it’s important to you that a non-compete clause is built in—so you’re the only pizza place in the complex, for example. Consider who your neighbors may be and if you need a sound mitigation clause. Continue listening as we cover many more items to consider building into your lease to protect your business.

Negotiating Tenant Improvement Allowance and free rent

Tenant Improvement Allowance or Dollars (TI) is money that a landlord gives you to put towards costs of building out your space or making improvements. However, keep in mind that this is more of a loan—it’s wrapped into your rent cost. So if you’re negotiating a higher amount per square footage, remember you could be increasing your base rent.

In lieu of a larger TI, your landlord may offer a lower amount of money per square footage but in exchange offer a certain length of time of free rent. They typically give you enough time to build out your storefront. So you need to consider upfront what is more important to you. Listen to the rest of the podcast as we discuss this topic in length as well as other things to be aware of as you’re wrapping up your lease agreement.

Resources & People Mentioned

• Eric Finkelstein
• Chiesa Shahinian & Giantomasi Law Firm
• Letter of Intent

Connect with Eric

• Eric Finkelstein
• Eric’s LinkedIn

Connect With Erik

• Facebook
• LinkedIn

It’s not uncommon for anyone who builds a successful business to think they should turn it into a franchise. But becoming a franchisor is not as simple as selling the idea to an interested buyer. There’s a right way and wrong way to go about it - and Lane Fisher is one of the guys who can explain what the right way is in clear terms.

As a Franchise Attorney, Lane currently represents more than 500 franchise brands in business transactions and complex franchise litigation and is a member of the American Bar Association’s Forum Committee on Franchising. He deals with the legal side of franchising day in and day out. This episode is part one of a two-part conversation, so join us to learn how to consider whether or not you should become a franchisor.

Outline of This Episode

• [0:31] My introduction to Lane Fisher, Franchise attorney
• [1:36] What franchisors need to know about the reality of setting up a franchise
• [3:36] After the analysis, what goes into creating the FDD (Franchise Disclosure Document)
• [7:41] Should franchisors create addendums and variations on their franchise model?
• [11:24] The ideal person or company that Lane’s office can help
• [14:51] What to do if you know you may want to franchise two years from now?
• [24:32] How long is the typical process to set up a registered FDD?

The 1st question when creating a franchise: Does it make money?

If your first consideration when creating a franchise is not on how franchisees can clearly make money by purchasing one of your franchises, you’re missing the boat. You have to be clear on your value proposition. Can others model your success by building out a substantially similar business and making a profit doing so? Many wanna-be franchisors seem to think that a unique product will overwhelm the need to make money or that the franchisee will “figure it out” in a new location. That’s NEVER a good assumption to make.

The better your franchise concept performs from a profitability standpoint, the more everyone will be interested in it. If you bring a strong risk/reward proposition or have identified your highly efficient footprint to compare to other successful franchisors, you’ll be able to see if you are offering a better or worse economic opportunity. You must have translatable profitability that is related to a substantially similar business and can be articulated in writing. When you can provide that, you’re able to put it front and center when courting potential franchisees. The clearer it can be, the better.

What goes into a good FDD (Franchise Disclosure Document)

There are advertisements out there promising to set people up with a Franchise Disclosure Document (FDD) for $5000. When I asked Lane about how reliable those documents really are, he said that $5000 will get you a template with names changed. That’s not ideal for something as important as creating a franchise model that works for you and your franchisees. A good FDD needs to be specific to your concept, well-written, proofread and corrected, and easily understandable. You can’t get that from a cut and paste template.

Your FDD also needs to clarify what conduct is required of franchisees in order to comply with the contract. Ambiguity is not your friend, it will wind up being problematic in the end. These are two examples of simple things that must be done in order to create a trouble-free relationship between you and franchisees and both happen through doing your FDD right. It’s worth investing in the creation of the most efficient, pointed document that’s correctly related to your business and expresses the obligations in the shortest way possible - in plain English.

franchisors should avoid addendums and variations to their agreements

It’s tempting to change the terms of your franchise agreement because you want to lessen the pain when a franchisee is considering your deal. Sure, make it as painless as possible, but not by modifying your agreement for every interested party. The more you make each franchise agreement a variation of the basic agreement, the more difficult it becomes to come up with a valid valuation of your company. That may not seem like a big deal now, but you may want to sell the company eventually or bring in additional investment capital. When you do, a consistent franchise agreement will make everything easier.

An important thing private equity firms and investors are looking for is uniformity in the offering. If you’re in the habit of making modifications to your basic agreement, you need to make that change IN the original agreement instead so your organization remains uniform. In that original agreement, you need to be able to articulate a bonafide reason why the language you are using is in the contract and who it is intended to protect. Clarity is your friend.

So once again - don’t get into the habit of negotiating franchise agreements. Instead, create an agreement that is fair to all parties, to begin with. When you do, you avoid unending negotiations which are counterproductive to scaling or selling your company.

The critical step of protecting a strong trademark

I asked Lane to give me the top mistakes that franchisors make over and over - and he had so much to say about his first point that we never got to the next one. So be sure you listen to the next episode to hear those. What was his first point? He says every franchisor needs to have a very strong, protected trademark.

It’s essential for this reason: First, you need to be clear that you can legally use that name/mark. The name and business are indivisible, so you don’t want any doubt about who you are, what the business is, and how consistent and stable it has been over time (for the sake of potential franchisees as well as consumers).

You’ll also want to ensure that your franchise is a distinct entity from every other company out there. The only surefire way to do that is through the trademark research process and filing the trade name once you are sure you can do so without any kind of infringement. franchisees need to be assured that the name they are buying into is one they will have no problems with. Listen to learn more about why this is such an important issue.

Resources & People Mentioned

• Springboard event with Lane Fisher
• Franchise UnConference
• FDD (Franchise Disclosure Document)

Connect with Lane Fisher

• Lane Fisher’s law firm - lfisher (at) fisherzucker.com
• Lane on LinkedIn
• Lane on Twitter: @LaneJFisher

Connect With Erik

• Facebook
• LinkedIn

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Franchising veteran Joe Mathews can see into the future. At least that would help explain why he knows so much about where franchisors are headed…

As just the 40th employee at Subway, Joe played a key role in the rapid expansion of the restaurant from 400 locations to 3,000 in only 3 years! His tremendous success, both at Subway and beyond, has earned him credibility as one of the prominent thought leaders in franchising.

In part 2 of this interview, Joe and I talk about all about franchisors - what makes a good one, what makes a bad one, and the value they should be providing their franchisees.

What we talk about:

• Why leadership trumps industry
• When franchisees break the rules
• Royalties are not rent
• The entrepreneurial myth
• Where franchisors should be spending time
• What private equity cares about
• The Secret of Anticipation

What we mention:

• Street Smart Franchising, by Joe Mathews
• Iconic Franchising, by Joe Mathews (coming soon)
• Subway
• Blimpie
• McDonald’s
• 7-11
• Five Guys
• Dunkin’ Donuts
• Fred Deluca
• Ray Kroc
• William Rosenberg
• Elon Musk
• The Entrepreneur’s Source
• Franchise Performance Group
• FranData
• FranConnect

Franchising veteran Joe Mathews can see into the future. At least that would help explain why he knows so much about where franchisors are headed…

As just the 40th employee at Subway, Joe played a key role in the rapid expansion of the restaurant from 400 locations to 3,000 in only 3 years! His tremendous success, both at Subway and beyond, has earned him credibility as one of the prominent thought leaders in franchising.

In part 1 of this interview, Joe and I talk about brand genius, what franchisors should be doing, and the three eras of franchising. Trust me, you’re going to want to listen.

What we talk about:

• Subway’s surge across the nation
• Invention, innovation, and replication
• Entrepreneurs’ self-limiting beliefs
• Consumer facing vs. franchising business models
• Where are we today
• The 4 inflection points of reinvention
• The Peter Principle

What we mention:

• Street Smart Franchising, by Joe Mathews
• Iconic Franchising, by Joe Mathews (coming soon)
• Subway
• Blimpie
• McDonald’s
• 7-11
• Five Guys
• Dunkin’ Donuts
• Fred Deluca
• Ray Kroc
• William Rosenberg
• Elon Musk
• The Entrepreneur’s Source
• Franchise Performance Group
• FranData
• FranConnect

Former NFL linebacker and NCAA champion Ned Bolcar comes on the show to talk about what he knows best, and how the lessons he learned as an elite athlete at Notre Dame translated to his success as an equity trader on Wall Street, and eventually an Orangetheory Fitness franchisee.

 

In this episode we talk about:

• The trajectory of success
• The wisdom of frugality
• What sells great products
• Strategy of saving vs. re-Investing
• Why hiring is the most important thing
• The daily grind
• Figuring out your customers’ “why”

 

What we mention:

• Notre Dame
• Lou Holtz
• Orangetheory Fitness

Welcome to the inaugural episode of the Franchise Secrets Podcast!

In this episode, host Erik Van Horn talks about the goal of the podcast, and how he got started as a franchise entrepreneur.