Grow Your Franchise Effectively | The #1 Tip in Choosing the Right Franchisee

DESCRIPTION:

Ron Holt, founder of Two Maids & a Mop, shares his experiences with Fred DeLuca, the billionaire franchisee of Subway. DeLuca, known for his curiosity and larger-than-life personality, built the world's largest franchise company from scratch. Holt first met DeLuca at an IFA conference in Las Vegas. At the time, Holt's company was a small cleaning business in Florida with 12 locations. Despite having all the necessary systems and processes in place, they hit a wall and didn't know how to proceed. It was suggested that they should consider franchising, despite Holt's lack of knowledge in the area and the negative things he had heard about it from other franchise owners.

During a break at the conference, DeLuca sat across from Holt and began asking him questions about his business. Holt, initially annoyed, began to engage in the conversation, boasting about his 12 stores. When Holt asked DeLuca about his own business, he was humbled to learn that DeLuca owned Subway with 42,000 global locations. The two continued their conversation for hours, with DeLuca offering invaluable advice about franchising.

After the conference, they continued their discussions via Skype. DeLuca offered to buy Two Maids & a Mop multiple times over the next year, but Holt declined as the offers were not financially appealing. Despite this, Holt appreciated DeLuca's mentorship and the lessons he learned from him. One piece of advice that DeLuca gave Holt was not to always listen to franchise owners, as their suggestions may make their lives easier but could come at a cost to the business. Holt shared this advice at a Two Maids conference, which was met with backlash from the franchisees. Despite the controversy, Holt acknowledges the value of DeLuca's advice and the impact it had on his business.

-With Ron Holt.

TIMESTAMPS:

00:00 - Introduction and background on meeting Fred DeLuca

 01:05 - Initial impressions of Fred DeLuca and his interest in the speaker's business 02:15 - Transition into discussing the speaker's background and entry into franchising 03:10 - Decision to explore franchising and attending an IFA conference

 04:20 - Meeting Fred DeLuca at the conference and initial interactions

 05:30 - Fred DeLuca's involvement and mentorship over the following weeks

 06:45 - Offer to buy the business and considerations

 07:40 - Fred DeLuca's mentoring style and lessons shared

 09:00 - Fred DeLuca's resistance to technological changes and lessons learned

 10:20 - Advice from Fred DeLuca regarding franchisee feedback and profitability

 11:30 - Reaction to sharing Fred DeLuca's advice with franchisees

 13:00 - Conclusion and reflection on Fred DeLuca's teachings

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

Alex Gingold, the guest on the Franchise Hot Seat, discusses his business DonutNV. The rebranding from Cinnamony Donuts to Donut Envy was intentional, aiming to engage customers and prompt them to ask questions about the brand.

The business started in 2014 as a small outdoor mall kiosk at the Philadelphia premium outlets, serving hot mini donuts in two flavors and fresh squeezed lemonade. Gingold and his wife, Amanda, chose the donut business for its flexibility and their love for quick service food. They also wanted to avoid the time commitment of brick and mortar businesses.

The decision to start the business was catalyzed when Amanda lost her job. Gingold kept his job in the insurance industry for another year and a half after launching the business.

The couple launched their first mobile trailer a year after starting the kiosk due to customer requests for their presence at events.

Gingold also shares his experience working at Subway as a teenager and his aspiration to become a Subway franchisee. However, a business professor advised him to build his own system instead, leading him to franchising.

He expresses regret that his small business and entrepreneurship degree program at Penn State did not include franchising education.

- With Alex Gingold

TIMESTAMPS:

00:00 - Introduction to Donut Envy and intentional branding 

01:12 - Origins of Cinnamony Donuts and rebranding to Donut Envy 

02:30 - Starting as a kiosk at Philadelphia premium outlets 

03:50 - Initial menu offerings and concept development 

05:10 - Transition from corporate roles to entrepreneurship 

06:45 - Finding used donut equipment on Craigslist 

08:15 - Decision-making process and overcoming hurdles 

10:00 - Official launch of Donut Envy in 2014 

11:20 - Balancing entrepreneurship with maintaining a job 

12:40 - Expansion into mobile trailer setup 

14:00 - Transitioning from job security to entrepreneurship 

15:30 - Learning experiences from early Subway employment 

17:00 - Considering franchise ownership at a young age 

18:20 - Participation in Subway's global student competition

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

John Hayes hosts another episode of the Franchise Hot Seat, featuring Margaret Chebat, a director at PuroClean, a major franchisor. Chebat shares her journey into franchising, which began right after college when she joined PuroClean. 

She was attracted to the company's culture and people, despite not knowing much about the restoration industry or franchising. Chebat acknowledges that while franchising has traditionally been a male-dominated field, many women were already involved in various levels of franchising by 2013.

Chebat, who initially started in marketing, transitioned to business development after earning her MBA. In her role, she builds relationships with insurance carriers, commercial partners, and strategic partners to drive additional revenue to PuroClean's network of franchise owners. 

Despite facing challenges as a young woman in the industry, Chebat credits her colleagues and co-workers for being advocates for her. She also acknowledges the importance of mentorship, particularly from Natalie Zupo, the director of marketing who hired her.

Chebat advises young people entering the franchising industry to work hard, build relationships, and be authentic. She also encourages them to put themselves in situations that push them towards growth. - With Margaret Chebat.

TIMESTAMPS:

00:00 - 00:30: Introduction by John Hayes

00:30 - 01:22: Introduction of Margaret Chebat and her background

01:22 - 04:19: Margaret talks about how she got into franchising and her experience joining Puriclean

04:19 - 05:50: Discussion on Margaret's knowledge of franchising before joining Puriclean

05:50 - 06:58: John Hayes discusses the presence of women in franchising

06:58 - 08:32: Margaret's transition from marketing to business development

08:32 - 10:45: Margaret talks about the challenges she faced as a young woman in the franchising industry and her mentors at Puriclean

10:45 - 12:16: John Hayes discusses the importance of educating young people about franchising and Margaret shares advice for newcomers

12:16 - 14:09: Margaret provides advice on building relationships in the workplace

14:09 - 15:25: Margaret discusses the importance of identifying opportunities for networking

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

The podcast continues the discussion on responsible franchising, emphasizing the importance of handpicking franchisees with the right skills. They note that while this is a crucial aspect of responsible franchising, it is often overlooked in favor of reducing costs or seizing sales opportunities. They argue that skills are less important than behaviors, as the latter can determine a franchisee's success with a brand. They caution that not everyone is suited for franchising, and it is the responsibility of the franchisor to discern who is likely to succeed. They criticize the common practice of franchisors selling franchises merely to collect a fee, arguing that this is not responsible franchising. Harper and Haller advocate for the use of personality profiles to match prospective franchisees with brands, a tool they claim is underutilized. They argue that this is the first step towards success for a franchisee and without it, responsible franchising cannot exist. They also suggest that personality profiles can help franchisors tailor their training to individual franchisees, as everyone learns differently. They conclude by urging prospective franchisees to insist on this practice and to compare their talents with those of the most successful franchisees. However, they note that a matching profile does not guarantee success, as other factors like money, location, and demographics also play a role. They stress that responsible franchising begins with knowing the complete story about a franchise candidate.

- With Aaron Harper, Matthew Haller.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

The podcast discusses the concept of responsible franchising, focusing on the selection of the right franchisees. The International Franchise Association's recent social media posts have emphasized the collective responsibility of the franchise community to protect the franchise model. However, the concept of responsible franchising, also known as responsible development, has not been widely accepted in the United States, unlike in Europe where organizations like the European Franchise Federation and the British Franchise Association have been promoting it since the 1980s. The podcast host criticizes American franchisors for selling their brand's master licenses for large sums of money, often leading to failure due to lack of readiness for international expansion. This has led to a perception of greed among American franchisors.

The host also discusses the fear of failure that deters people from buying franchises and emphasizes that not all franchisors are equal. Some are more responsible in developing their franchise networks, providing effective training and support, and having experienced people to teach the system to franchisees. However, there are also franchisors who lack the experience or resources to develop successful networks, or who are simply selling franchises for profit, which is not beneficial for the franchisees.

The host advocates for the franchise community to work together for the good of franchising and to embrace responsible franchising. The current interest in responsible franchising is partly due to potential franchise legislation that could potentially harm the franchise industry. The host encourages all communities to protect franchising, starting with the franchisors.

Matthew Haller, president and CEO of IFA, and Aaron Harper, CEO of the Rolling Suds franchise brand, have proposed four core tenets of responsible franchising: setting clear expectations, ensuring capital adequacy, choosing the right franchisees, and promoting sustainable growth. The host agrees with these tenets but expresses concern that franchisors may continue to fall short in choosing the right franchisees, which often leads to issues within franchise networks. The host plans to discuss solutions to this problem in the second part of the podcast.

- With Aaron Harper, Matthew Haller.

TIMESTAMPS

01:15 - Overview of Responsible Franchising 

03:30 - Emphasis on Collective Responsibility by International Franchise Association 06:12 - Lack of Acceptance of Responsible Franchising in the United States 

08:45 - Contrasting Approaches in Europe with European Franchise Federation and British Franchise Association 

11:20 - Critique of American Franchisors Selling Master Licenses 

14:50 - Perception of Greed Among American Franchisors 

17:30 - Discussion on Fear of Failure and Varying Degrees of Responsibility Among Franchisors 

21:05 - Advocacy for Collaboration and Embracing Responsible Franchising 

24:30 - Concerns Regarding Potential Franchise Legislation 

28:15 - Call for Franchisor Communities to Protect the Industry 

31:00 - Introduction of Matthew Haller and Aaron Harper 

32:45 - Four Core Tenets of Responsible Franchising 

35:20 - Setting Clear Expectations 

38:00 - Ensuring Capital Adequacy 

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION :

The video transcript features a conversation with Michael O. Browning Jr. The discussion begins with Browning's background, where he shares his journey from being a college dropout to becoming a successful entrepreneur. He explains his early struggles and how he overcame them through hard work and determination. Browning then delves into his business, Urban Air Adventure Park, detailing its inception, growth, and current operations. He highlights the company's mission to provide safe, fun, and affordable entertainment for families.

Browning also discusses the challenges he faced in the business, such as managing the rapid growth and maintaining quality across all locations. He shares how he navigated these challenges through strategic planning, hiring the right people, and investing in technology. Browning emphasizes the importance of having a strong team and a clear vision for success. He also talks about the company's franchise model, explaining how it helps in expanding the business while ensuring consistency in service delivery.

The conversation then shifts to Browning's leadership style. He believes in leading by example and fostering a culture of accountability and transparency. He also stresses the importance of continuous learning and adapting to change. Browning shares his insights on the future of the entertainment industry, predicting a shift towards more interactive and immersive experiences. He also discusses his plans for Urban Air, including international expansion and introducing new attractions.

Browning concludes the conversation by sharing his advice for aspiring entrepreneurs. He encourages them to embrace failure as a learning opportunity, to be persistent, and to always stay true to their vision. He also underscores the importance of work-life balance and taking care of one's mental health. With Michael O. Browning Jr.

- With Michael O. Browning Jr.

TIMESTAMPS :

0:00 - John Hayes with the franchise hot seat, introducing his guest Michael O. Browning Jr.

0:31 - John welcoming Michael to the program.

0:51 - Introducing Michael's company, Unleashed Brands, and discussing the concept of entrepreneurs in franchising.

3:02 - Michael talking about how he discovered franchising and decided to get involved.

5:43 - Discussion of the family focus in Unleashed Brands.

7:12 - The "franchise growth accelerator" tagline and its significance.

8:20 - Michael's consideration of becoming a Franchise Support Organization (FSO).

9:31 - The possibility of expanding the number of brands within Unleashed Brands.

12:06 - The growth of Unleashed Brands and its international prospects.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

The Franchise Hot Seat Podcast features Aaron Harper, the CEO and owner of Rolling Suds, a rapidly growing power washing franchise. Harper explains that the power washing industry is largely made up of individuals doing the work themselves, with little large-scale sophistication. He believes a good franchise brand can bring standards and sophistication to the industry, much like 1 800 GOT JUNK did for the junk business in the nineties.

Harper promotes responsible franchising, which he defines as setting proper expectations during the franchise development process and delivering on those promises. He emphasizes the importance of communication between operations and sales, and the need to turn away more franchisees than you bring in, to ensure only the right people are brought into the system.

Harper has sold 44 units to 15 franchisees in 12 states in seven months, while turning away 25 people who were not right for the business. He stresses the importance of having enough capital, setting the right expectations, bringing in the right people, and knowing which systems will break a year from now and solving for that in advance.

Harper also discusses the issue of passive income in franchising, which he believes is a mistake. He advises candidates to learn every aspect of the business before starting to scale, and warns against the misconception that you can buy a franchise, hire a general manager, and then set it and forget it.

Finally, Harper explains his strategy of requiring a minimum purchase of two territories, which he believes encourages franchisees to think like multi-unit owners and provides room for growth. However, he will not sell more than three units to a franchisee unless they have previously built and scaled a business.

- With Aaron Harper

TIMESTAMPS (Use ChatGPT on Transcript):

00:00 - Introduction to the Franchise Hot Seat Podcast 

00:23 - Introduction of the guest, Aaron Harper, CEO, and owner of Rolling Suds 

01:17 - Explanation of what Rolling Suds does 

02:19 - Discussing the need for another power washing franchise 

04:02 - The lack of sophistication in the power washing industry 

05:32 - Comparing to the development of other franchise industries 

07:09 - Promoting responsible franchising 

09:09 - Setting proper expectations in the franchise development process 

10:45 - The importance of operations and sales alignment 

11:34 - Turning away franchisees who are not the right fit 

13:05 - Challenges in responsible franchising 

14:15 - The issue of passive income in franchising 

16:22 - Encouraging franchisees to be actively involved 

18:05 - The mistake of franchising for passive income 

19:46 - Scaling a business and the structure for scaling 

22:13 - The minimum purchase requirement of two territories 

24:12 - Thinking like a multi-unit owner 

26:00 - Balancing capital allocation and ad spend for franchisees

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

In this video, you will learn:

1. The intriguing story of Brian Beers' journey in the franchising business, specifically with Midas, a renowned auto repair franchise. How did he and his brother transform a family business into a multi-million dollar empire?

2. How Brian and his brother managed to scale their business from just a few shops to a whopping 33 Midas auto repair shops in the Philadelphia and New Jersey regions. What strategies did they employ to achieve such impressive growth?

3. The unique approach Brian and his brother took after graduating from the University of Miami in 2010. How did learning best practices from other franchisees contribute to their success?

4. The smart financial moves they made to expand their business. How did they leverage a loan to acquire two locations in the Philly market and then use the profits from these locations to buy more shops?

5. The stability and resilience of the auto repair industry, even in times of economic downturn. Why does Brian consider it a good investment?

6. The surprising perception of Midas by the younger generation. Why is Midas more associated with tires, even though tires make up a small percentage of their business?

7. Brian's future plans for the business. What factors is he considering as he contemplates buying existing stores in their current footprint or in adjacent markets?

8. The potential challenges Brian foresees in expanding their business. Why is he cautious about adding complexity to their business by expanding to areas that would require air travel?

Dive into this insightful conversation and discover the secrets behind the success of a thriving franchise business.

TIMESTAMPS:

0:36 How Brian got into Midas

11:40 Franchising as a people business

16:19 Internal customers matter

34:53 Insights into localized marketing strategies

40:46 Balancing business expansion and personal life

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast 

DESCRIPTION:

In this video, you will learn:

1. How did a young man with a passion for radio end up as a successful franchise owner? Discover the unexpected journey of Gary Occhiogrosso, from his family's Italian pastry shops to the world of franchising.

2. What inspired Gary to leave his career in radio and venture into the franchising industry? Uncover the story of a neighbor's success that sparked a life-changing decision.

3. How did Gary manage to secure a franchise with no prior knowledge or training? Learn about his bold move to apply for a franchise, and the surprising outcome.

4. Why did Gary invite his cousin to join him in his venture? Understand the importance of partnership and collaboration in business.

5. What led Gary to realize his desire to be on the franchisor side of the table? Delve into the intriguing model and concept of franchising that captivated his interest.

6. Why did Gary choose Dunkin Donuts despite not studying franchising or looking at other opportunities? Find out how his neighbor's success, his familiarity with the bakery business, and his skills in sales influenced his decision.

7. What is Gary's advice for those considering entering the franchise business? Hear his insights on the importance of hard work, being connected to the mission and purpose of the franchise, and understanding that success is not guaranteed for everyone.

TIMESTAMPS:

21:51 Why it pays to turn down prospective franchisors

25:43 what it costs to become a franchisor

30:28 educating and training prospect franchisors

36:01: “Are prospective franchisees getting dumber?”

40:24 profiling for the right franchise fit

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

In this video, you will learn:

1. The intriguing history of HomeVestors, a real estate franchise company that once dominated the market. What led to its rise in the late 1990s and early 2000s? And what caused its decline during the Great Recession? The answers lie within the video.

2. The captivating story of Tim Herriage, a former franchisee who worked closely with Ken DeAngelo, the founder of HomeVestors. How did their relationship shape the company's trajectory? Watch to find out.

3. The inspiring leadership style of Ken DeAngelo, a charismatic and influential figure who left an indelible mark on HomeVestors. What made his leadership so genuine, heartfelt, and purposeful? And how did his personal touch contribute to the company's success? The video reveals all.

4. The innovative approach to franchising that set HomeVestors apart from its competitors. How did DeAngelo's unique strategy of avoiding oversaturation and only giving awards when truly deserved impact the franchisees? The video delves into this fascinating topic.

5. The groundbreaking concept of buying and renovating ""ugly"" houses, an idea that was initially met with resistance but eventually became a successful business model. How did this idea generate 250,000 leads a year for HomeVestors franchisees? The video explains in detail.

6. The importance of lead generation in the pre-internet era, a time when HomeVestors' billboard advertising strategy resulted in high-quality, prequalified leads. How did this strategy work and why was it so effective? The video provides the answers.

TIMESTAMPS:

00:36 Remembering Ken D’Angelo’s remarkable leadership

2:15 The role of leadership and charisma in any industry

24:05 A numbers game and growth business

29:12 When and why Tim left as a franchisee

39:16 What Time Herriage would do for HomeVestors

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast