What if the biggest threat to your franchise system isn’t sales, development, or operations but the financial foundation you’re quietly ignoring?

In this episode, we sit down with the franchise finance authority, Ron Feldman, a 30-year veteran who has advised, funded, and evaluated many franchise brands through ApplePie Capital, FRANdata, and Franchise America Finance. Ron pulls back the curtain on the one thing that separates healthy, scalable brands from the ones that stall out: franchisee profitability and why ignoring it is the fastest path to failure.

From the early days of the Goddard School to building lending platforms that have deployed more than $3 billion to franchisees, Ron shares what lenders really look for, why item 19s often fall short, and how emerging franchisors accidentally sabotage their own growth. He breaks down why unit-level economics matter more than any development goal, how to avoid becoming a “churn and burn” brand, and what it takes to become an exceptional franchise system in the eyes of lenders, franchisees, and buyers.

Whether you’re a founder trying to grow responsibly, a franchisor preparing for scale, or a leader committed to better financial discipline across your system, this episode is a masterclass in doing franchising the right way with clarity, transparency, and profitability at the core.

Connect with Ron:

LinkedIn - https://www.linkedin.com/in/ronaldafeldman/

Email - [email protected]

ApplePie Capital Contact - [email protected]

Episode Highlights:

• Ron’s early days as a Goddard School franchisee
  
  
• The mentor who shaped his entire franchising philosophy
  
  
• Why franchisee profitability is the #1 indicator of system health
  
  
• The biggest mistakes emerging franchisors make
  
  
• How lenders actually evaluate an FDD
  
  
• Why item 19 rarely shows the full story
  
  
• What makes a brand “exceptional” in the eyes of lenders
  
  
• Why founders need more capital than they think
  
  
• The dangers of undercapitalization (for franchisors + franchisees)
  
  
• The responsible franchising movement and why it matters
  
  
• The power of benchmarking, data, and the right tech stack
  
  
• Accelerating time from signed to open and why most brands struggle
  
  
• When franchisors should buy back locations to protect validation

Connect with Tracy

Personal LinkedIn: https://www.linkedin.com/in/tracy-panase/

JBF LinkedIn - https://www.linkedin.com/company/jbfsale

JBF Franchise System - https://jbfsalefranchise.com/

Email: [email protected]

Connect with Shannon

Personal LinkedIn - https://www.linkedin.com/in/shannonwilburn/

JBF LinkedIn - https://www.linkedin.com/company/jbfsale

Website - https://shineexecutivecoaching.com/

Email - [email protected]