06 May Everything You Should Know About How Franchise Business Works
If you’re like me, you might not have any experience with franchising. You might even be a little confused about what counts as a franchise because some people claim their business is a franchise when it really isn’t. Franchising is a lucrative practice, but you’ve got to know what you’re doing. You’ve got to do your homework. Our guest today is franchising expert Lance Graulich, and he’s going to teach us everything you need to know about franchising.
If you’re like me, you might get lots of people reaching out to you about franchising, and you might be wondering why this happens and if it is normal. According to Lance, it is super normal. If you’re an experienced entrepreneur, people know that you have what it takes to be a franchisee, and that’s why they all want you!
2020 showed us just how weak our businesses can be and how important it is to make good investments. When you’re looking into franchising, there are definitely franchises that are more recession-proof than others. For example, let’s look at restaurants. During the last year, big box restaurants did not do too well because no one could come to their locations. Small restaurants, however, did very well because their take-out business increased. When you’re looking for a good franchise that will weather the storm, invest in the ones that people will always need, even when there’s a pandemic.
There are so many really great things about franchising. One of them is that it gives you the freedom you crave with the support of the corporate company. There are so many things you don’t have to do because corporate takes care of it, giving you the time you need to really focus on making your part a success. Also, you can talk to other franchisees about the franchise to make sure that it fits your lifestyle before even investing. You don’t build from the ground up: you use the already existing platforms and processes to create success.
Franchising is so fascinating, and entrepreneurs do really well with it. It can be a great wealth-building tool and lead to incredible profitability. Profitability is, of course, important to me, and this is a great way to go about increasing it. If you want to learn more about franchising, listen to this podcast or connect with our guest!
Why people want you for franchising
The perks of franchising
Where there’s adversity, there’s absolutely opportunity.
It’s about offering value to your customers, and franchising is an amazing way to deliver that.
Your ‘I will’ is a lot more important than your IQ.
Like so many entrepreneurs, Lance Graulich did not start out as his own boss. He was groomed for Wall Street, and that was the life he expected to lead. He found, however, that he was bored in that life-style. He decided to help his uncle build a franchise instead and became hooked on franchising. Today, he is the founder and CEO of Ion Franchising. He enjoys helping people find the perfect franchise situation for them.
To help your business stand out on social media, you've got to consistently share compelling content that catches the attention of your potential clients. But keeping up with that daily grind is draining your creative energy as you brainstorm, create and share your posts every single day. Not to mention when things get busy, your content is the first to go. I'm Angela Proffitt and clients are my agency for five figure strategy days to batch and create magnetic content for social media. But in my upcoming free training, I'll share the methods my team uses to create amazing social content that allows you to stay consistent without spending all your waking hours on social media. Sign up today at GSD power hour.com.Continue Reading
To help your business stand out on social media, you've got to consistently share compelling content that catches the attention of your potential clients. But keeping up with that daily grind is draining your creative energy as you brainstorm, create and share your posts every single day. Not to mention when things get busy, your content is the first to go. I'm Angela Proffitt and clients are my agency for five figure strategy days to batch and create magnetic content for social media. But in my upcoming free training, I'll share the methods my team uses to create amazing social content that allows you to stay consistent without spending all your waking hours on social media. Sign up today at GSD power hour.com.
Welcome to business unveiled podcast. This is the place where we help overwhelmed time starved entrepreneurs like you make the profitable shifts to get more done and get more out of life. I'm your host, Angela Proffitt, award winning eight figure entrepreneur and CEO. And in every episode of business unveiled, I'm bringing you conversations that will give you the expertise and strategies that will scale your team and business so you can get shit done. That's GSD in our world. So get your time back and grow a business that helps you be present in your life. Let's do this, y'all.
Hi, y'all. It's Angela. I'm back for another episode of business unveiled. And we have a super special guest today, I'm so excited to chat with him. Because we have so much in common in terms of being a serial entrepreneur. But what we don't have in common is understanding franchises. And I don't have any experience with it, except some of my clients own franchises. And then we have a few other clients that I've gotten into e commerce this past year, that say their franchise, but they're really not a franchise. And so I'm like, are they confused? Or am I confused? So I am going to ask our guest a couple questions today about that. So I'm super excited about it. He is the owner of ion franchising, and today we're going to talk about buying a franchise or franchising your business. Now, if you're new here, and you're a new entrepreneur, do not get scared away, we're not going to talk over your head. But I want you to know there's a lot of garbage out there about owning a franchise and how you buy into a franchise. It's absolutely a lucrative model, but you got to kind of know what you're doing. You got to do your homework. And as busy entrepreneurs, sometimes we forget to do the research and we forget to do our homework. So Lance is going to tell us everything that you need to know in this podcast today. So Lance, welcome to the show. Well, hello, Angela. And thank you so much for having me. And yes, I'm going to help everyone with their homework, just like you said, Yeah, the cliff note version. So before we jump in and talk about your business and how you have just amazing track, record, an amazing track record with franchises. Tell us about your journey. How did you grow up and what led you into what you're doing today? So I I live in Las Vegas and have lived in the sort of the West Coast for a long time now. 20 plus years, all the time. I do not that's kind of dangerous. But you're I guess a professional that might work but not for me. And I grew up in New York and I thought I was going to work on wall street with Dad Dad was his company was the largest over the counter trading house on Wall Street and I sort of was groomed for that and many summers on Wall Street in the office and getting my accounting degree and eventually an economics degree. I realized, you know, fresh out of college I said, this is kind of boring. I don't want to sit in an office in the concrete jungle. I need stimuli from people other than you know, sitting in an office staring at the back of chairs and what have you and I realized there were greener pastures for me and I had an uncle that made his mark in technology before anybody else really did. And he wanted to build a big food company restaurant company. And he did it with TGI Fridays in the in 1989. So, he lowered me he knew I was bored and he lowered me to scotch
Arizona, where we built a Friday's franchise from literally four locations, to about 67 locations in about five years doing 225 million a year. A lot of acquisitions. We didn't open every single store, but you talk about getting your MBA, you know, besides having my undergraduate degree, never got my MBA, that was my MBA, in franchising in the restaurant business. I did it throughout college as well and really enjoyed the hospitality piece of things and getting know people and training people and motivating people. So the short version of the story is, so now I'm on the west coast, worked with Uncle Stephen for five years, got bored again, did as much as I could, Stephen went back to Korea to go build more companies. And, you know, fast forward, I ended up being a franchisee of wingstop I was a franchisee of Krispy Kreme Doughnuts. But I fell in love with franchising, you know, the fact that you can inherit, well, basically buying a somebody else's system, get a complete support, package training, package, marketing, they'll do your research and development ongoing because they want to remain competitive. And it's a proven concept easy to get in easy to get out.
And, look, I created my own concepts of what as well, if we have time to talk about that I created some successful brands, and sold them. But I really I realized I made a lot of mistakes, I made money. But I made a lot of mistakes with partners, I'm pretty aggressive, I don't just buy, I don't I don't just dip my toe in. I'm completely, you know, submerged in this in this life. And when I did wingstop it was like, Yeah, I opened one. But three months later, I opened number two and then number three, and number four. And most people make the mistake because they don't know how to operate these things. And in my case operations where it was actually easy it was that I had the wrong financial partners. And all we did was ever we all we did was argue. So over the years, I realized I am going to find the right way to help people so they can get into franchising the way I should have gotten into franchising, because I had some structural mistakes with the wrong partners and the wrong, you know, set up for myself. And today I represent. So fast forward to today I represent more franchise brands than anybody in the US. I have a small team that helps me and supports me and and the best part is, as you mentioned at the top of this helping people do their homework on franchising. I do the search component completely for free, free. Wow. And I will you know, I make a commission call it a success fee. In the event, I place somebody with one of my brands, but I really am an advocate for people to find the right franchise. I'm working with a young lady, and that's a nurse and she's looking at IV infusion brands that I have wellness is hot these days, especially and, you know, she's bringing in a partner. So now I'm coaching her, don't make this mistake, talk to an attorney. Do you need an attorney? I got 10 for you in your area? Do you need a franchise attorney I got 15 of those. Whatever resource I can offer to people to be helpful. And I love to give people my opinion. And if I'm if I don't feel comfortable, ask the attorney. But yeah, so that's the sort of the quick version. But my dad, this is interesting. You know, there's a nature versus nurture, argument, discussion that's ongoing for people like you and I, how did we become who we are? Is that was there an environmental thing that resulted that made Angela and Lance become entrepreneurs? Or were they born that way? And, you know, both of my grandfather's were entrepreneurs. And, and I really think I was born like this. And even if I wasn't,
you know, watching them, my dad told me to young age based on my comments about my employers, and what have you the few jobs I actually had, my dad looked at me and goes, Yeah, you're probably unemployable. And you're kind of like your grandfather's and you probably need to be really smart and be your own boss. But you know, there's a lot of people to talk about mistakes and building on your failures. And look, I I made plenty of mistakes, and I am going to have a whole series of books and I, I guess I guess I share these books verbally with people as I give them examples of what to do and what not to do without scaring the heck out of them of course.
Well, the thing is, like, I would say that if you're gonna go in and either be part
Have a franchise, you know, typically, at least the ones I'm familiar with, there are always partners involved. And what I have seen is, especially with women, we not me, but some women, if you're not potty trained, I call it potty train your brain to be funny. But it's like you cannot lead with emotion like you have to go in and lead with data and the research and what works and find follow the process like period. Because if we go in as women, and we try to change it based on emotion, you're not going to get the same results in the same outcome. So you got to get over yourself real quick. And if you don't know what you're doing, then the process is already there. So if anybody's thinking about it, and it's so funny, because depending on when you're listening to this podcast, there was this thing called COVID-19, like in the year 2020. And I got, I started to get all these emails from people through LinkedIn asking me, they're like, Hey, we're coming to Nashville. We're looking for franchise owners. Are you interested? And I'm like, Why do people keep asking me that, like, I'm already busy, I'm actually trying to phase out of companies like I don't want another thing to do right now. I'm like, building online programs. And I and I love that and I'm trying to travel the world right now. But you know, COVID hit, and then it's like, Okay, well, I guess we're gonna put a screeching halt on this. So for somebody that is that like a normal thing that people reach out to people on LinkedIn, I think they got my information through the entrepreneur organization, I'm in something called the exchange program, where most of the people and he only there's only about 14,000 members worldwide, but they're serious people. Like they're not out there, just and they pre qualified and they do their freakin homework and, but I'm just like, that's just kind of an odd email and like it keeps happening. And so I'm like, I'm like, my assistants, like, is this spam? I'm like, I think
so is that like a normal thing? If people are looking, and they're getting these types of offers, like through LinkedIn, and, and maybe the whole COVID year helped people get over themselves of like, I don't have to get on a plane and fly here and meet you in person, I can send an introductory email, and we can have a conversation and decide if it's a good fit or not, like, Is that normal these days? Yeah, you know, LinkedIn is a, you know, look at all the businesses I've owned over the years, again, creating concepts owning a lot of concepts. You know, LinkedIn was one of those places that I would try to avoid, because it was so salesy, even in the old days, and it's got a little bit worse, I think these days. So is it normal today? Yes. Because crazy domain people, you know, mindset is so important. As you certainly know if you can imagine how fearful people are, there's plenty of people I talked to that have worked at the same job for 25 plus years. And they think they need to do something else or no, they need to do something else. And to make that leap is incredibly difficult for a lot of people. So when people see an entrepreneur like yourself, it's easy for you to get into a franchise. Because you have a higher risk tolerance. Totally you can, you can do that assessment much quicker. And, you know, I have multiple friends that own two or three different franchise brands, and not necessarily in the same industry. Some stay in their lane and others venture out to diversify. As you mentioned, the pandemic You know, it is good to diversify for all reasons. You know, classically, the world is invested in real estate invested in Wall Street, and then you invest in some other sort of business and private equity groups today. It's all about franchising once they've exhausted their stock portfolio or real estate portfolio. Home Care is an enormously popular these days in most of my 30 homecare brands, home healthcare brands, non medical are owned by private equity groups. You know, that is so, you know, look, it is about mindset, and when they find someone like you that they don't have to worry about the fear factor, you're ready to jump. And franchising is truly about modeling success. So they find people that that know, they can easily jump into a model and follow a system without reinventing the wheel. Because you know, what does it take? I mentioned the IV infusion model. I have people that call me nurses or doctors they call me very regularly because it's a hot industry. And they say, yeah, Lance, I want to explore some of your IV infusion brands. And if none of them are really right for me, I'm gonna start my own and I was like, you can do you
have any idea how much money and time that takes, I have one brand that has 17 different vendors for their little IV and fusion brand. You can do it on your own good luck.
And let me know how that goes about three years.
doesn't happen overnight. But if you I tell people, if you have a passion, do it. Mark Zuckerberg created Facebook, he obviously didn't want to do anything else he started in college. That's what his idea was, he did a great, great job. But he had a passion for that he had an idea. Most people aren't singularly focused on one thing. And and, you know, that is the beauty of franchising, you get to fall into a system. I have one of my favorite stories, I have a family friend who has 20, franchise hair salons, 20 the guy doesn't have hair, I think all of his hair fell out in college. So, you know, because people, people picture themselves in business. And in some cases, it's the sexy business. I don't know why guys always think of owning a club or a restaurant, or a bar. Maybe when they're younger. That's what they think about. They don't think of a guy that has no hair that doesn't cut hair for a living, doesn't think of owning a hair salon. So when he was pitched this idea from a consultant, he was like, What are you nuts, that's probably the worst idea I've ever heard. yet. Today, he has 20 of them in probably nets a million and a half dollars a year not working very hard now as a full team in place. So that's what franchising does its wealth building and opportunity to be to build wealth without inventing Facebook.
And so what if there's a new business owner listening? Or if there's somebody that is an experienced business owner, and they're like, okay, I might consider this. Do you have like, the top recession proof type, brand or just arm of industry that you would say, you know, I feel really good about this. And, and I know from being in events, and growing up in the restaurant world, like my parents, were not entrepreneurs at all. In fact, my dad thought I was on drugs when I was like, I'm getting out of healthcare. And he's like, Did you fall in ate your head, I'm like, I can always go back. But I'm gonna, like, try this entrepreneur thing. And then I had to find my people. And I had to surround myself with the right people to actually teach me the mindset and teach me to work smarter, not harder, because I had no effing clue what I was doing. And so once I started to put the processes in the systems, which is exactly what we teach other creative business owners to do now from a productivity perspective, is how to set up all your systems in the cloud, and how to make sure you have a process. So when you onboard people, then everybody understands, like there's already processes in place, and when you don't follow a process ship falls apart real quick. And if it's falling apart internally, what do you think is happening externally to the clients that you're bringing in? So system and processes, it works. And, you know, we've we've all probably heard, like, good and bad stories of franchises. And even with the pandemic. I mean, there's some restaurants they had to pivot really effing quickly. And from a franchise perspective, like we have a women's clothing brand, they're our client, they have 30 brick and mortars, and they, they've been trying to really get the e commerce up and going. And so can you imagine bringing 30 women together who've owned the brick and mortars for a while? And they're like, and we all want to sell our clothing online? And I'm like, well, it's not that easy. And ecommerce is really it's like own entity. So do you want to buy into it or not? Because there's definitely an investment up front to build it all out. And of course, they have no clue on the backend. What it takes to run Shopify, the 35 plugins, they have no clue that one little click in then it has to sync with your inventory. I mean, they don't understand because corporate tax of everything, and that's the beauty of being part of a franchise. But what do you think is is there anything that is recession proof or something that you see that is just really hot right now, that is what's crazy, because to so many people, the sky is falling everywhere in anywhere, not for run for cover. But the reality is, okay, of course, there are some businesses that you should not be in right now. For example, a big box restaurant, like a TGI Fridays, or an Applebee's or whatever. That's not the place
To be soaking up all that rent in a big building that you can't even fill up. But believe it or not small restaurants, I actually had a yell, I was on a call a group call. And somebody was saying, we'll rest the restaurant business is the worst business to be in right now. And I said, Whoa, whoa, whoa, whoa, no, that's not the case. I have plenty of friends and small restaurant franchises, you know, under 2000 square feet, that are up 10 to 30% over last year, with amazing profitability because they're restricted to who could even come in their building. So they're getting more takeout business, more delivery. And and the profit margins overall are good, but more important than sales are up. So no big restaurants right now let's talk about, you know, automotive essential businesses, people still need their cars fixed, although they're not driving him as much. So maybe the automotive business isn't, you know, but the automotive business alternative health care, like I said, wellness or IV infusion brands, home health care, I mentioned earlier, companion care.
Amazing, amazing business, cleaning services, commercial cleaning, and residential. Now, there was a pause during this pandemic, there was a big pause in about march for about 30 to 45 days where nobody knew what to do. And that month was terrible for any business.
But now that we've been out of that, most brands that I have, let's say in, in home improvement, you know, people were getting their floors done, their blinds redone, or, or adding, you know, painting their house, there was so much that went on, because everybody was home, you know, and you're like, all your project list is growing. And so the Home Services brands are absolutely incredible. Real Estate related brands, pet services, you know, grooming training, we have so many pet related service brands. So there's there's more,
that are typically recession proof these days. I mean, the Home Services brands, I can tell you a completely recession proof at this point. Or let me rephrase that pandemic proof. Yeah, because people yet somehow still have money.
It's coming from somewhere else coming from somewhere. And I think to like, I mean, we even had to just like every other business that March, I was actually in Vegas speaking at an event at one of the casinos. And I was at dinner with a bunch of people. And my mother texted me. And she's like, Oh, my God, you have to take a red eye home. They're shutting down the airports. And I'm like, quit overreacting like you always do. And then I got the notification. That said, the NBA was shut down. They're scheduled on like, Oh, shit, maybe this is actually kind of serious. And so you know, I'd had a few passes, and one. And, you know, we're all laughing and giggling, but it's like, everybody was kind of getting the alert on their Apple news at the same time. And you could like feel the energy in the restaurant, like, drop, and some like, Alright, well, I'm gonna get on the southwest app and see if I can, I did, like, I went to the airport, because I didn't want to get stuck in Vegas. And I certainly didn't want to rent a car and drive because that's kind of a far trip. Okay, I just, I wouldn't be able to drive that. And then I got home, I'm like, I just don't understand what's happening. And so I have a lot of clients that were physicians, and I had a infectious disease client. And so I texted him, I'm like, What is this thing? Like, he's like, oh, and it's gonna be bad. Like, it's going to shut down your event company, it's going to shut down your co working space. He's like, I'm glad you I'm, I know, you'll be okay. Because you know how to make money online. But all this He's like, it's really bad. And he's like, it's been going on, but the, the way that the media and I mean, it's just sickening with the media does with it, but he's like, in the next 48 hours, you need to alert your clients and let them know that that the world is basically going to shut down. And you know, I highly respect this guy. I'm like, shit, okay. And then in 48 hours, you know, all the emails and the phone calls and the text and the Markopolos. And people were freaking out. And I'm like, I don't know what to do, but like, I need about two weeks, and like, I'm gonna, we'll figure it out. And, you know, I never stop and think like, it's a it's a lot of pressure. My mom's like, what are you gonna do? And I'm like, I need you to quit asking me questions because I don't have an answer. But that's what entrepreneurs are good at. And if you look at past recessions are not that we ever went through a pandemic. But you look at some of the larger companies and I started to research which I'm not good at research, but it's like
Okay, what have other companies done in the past when some things like this happen? And really good things come out of it, ideas come out of it? Absolutely. What I recognized about myself was that I was really comfortable doing what I was doing. And I'm like, Okay, it's time to get uncomfortable and learn some new shit. And that's what we did. And we started learning new platforms, I started networking with new eo people all around the world, learning how to build which I love designing on 3d platforms, I'm really big into VR, I did a lot of stuff with Oculus, when it first came out to build for plans for private islands, that they could sell the video and send it to prospect clients and sell their island with sight unseen. So none of this was foreign to me. But having like 100 people all trying to come to me to get an answer was a little bit concerning. So I turned everything off. I think people thought something was wrong with me, because I just went went black on social media and everything. But it's like sometimes, like those are really healthy growth opportunities. And so for franchises, I'm sure that you have that upper support, where it's like, you don't have to come up with all the answers, because corporate typically is up there trying to figure it out. And they're rolling out marketing campaigns. They're the ones that are doing the ring messaging, doing the ads, their team is building all of that. And then it gets pushed down to you as a franchisee zone owner. And you don't have to do all of that. So for me, I'm like, Well, shit, maybe this is a good
look, you don't have to come up with it by yourself. No. And that's so you make some great points. You know, where there's adversity, there's absolutely opportunity. And a lot of bigwigs, big motivational speakers, the Tony Robbins of the world, Mark Cuban, they've all come out and more or less said the same thing through this, this crazy pandemic, there's gonna be more millionaires created during this time than than not. And, and here's what it comes down to, you know, franchising, you hit it on the head, you're certainly not you're in business, by yourself, I mean, for yourself, but not by yourself, you have a brand backing you up, you know, most of our brands, when the, you know, the shit hit the fan, they're getting PPP money for their brands, they're negotiating with the attorneys, they did so many things for their franchisees, you know, waving royalty payments, whatever, whatever it took. And, you know, it's the same thing when you select a franchise and because of the pandemic, you know, the first call when I introduce somebody to a brand, the first call, I call the coffee date. And then as you get more serious, it becomes like the dinner date. And then it becomes Meet the Parents and the Meet the Parents are meeting the, the the executive team. And then you know, you're proving to the executive team, why, why you're worthy of their brand. And they still have to prove to you why their brand is worthy for you and your family. And then my favorite part, though, Angela, is the validation stage. In the validation stage, that's when the executive team more or less says, you know, Angela, you're fantastic. You know, what we need you to do now is here's a list of our franchisees call whoever you want, and report back to us next week, call 345 people and and basically you as a prospective franchisee of a specific brand, get to ask questions, like, would you do this again? What kind of money do you make? What's the worst thing that corporate does? That doesn't? Does they do or don't do for you? Best and Worst?
You know, things like that, and you start to figure out right away, should I do this? And and then you feel good about it or not? And nowadays, of course, in the future, people will be asking, Well, how did you handle the pandemic? And you're 100% correct. They switch all their marketing efforts to counteract whatever that is in their industry that they need to do. And the reality is, when you're an independent business, all of these, the so many of these business closures are independent businesses. They don't have support. They don't have the ability through technology, franchising changed dramatically 1011 years ago, probably 11 years ago or so when Google came out. And and search engine optimization became a thing and you know, I have brands that in the moving business, and do you know that 80% of their business as a franchisee for one brand in particular comes from technology because of corporate and if
For an independent operator, you can't afford to compete.
So, franchising is fantastic for many, many reasons. And one of my favorite expressions is clarity is currency. And I help people get really clear, they might not know what franchise they want to get into, they might have some desire to get into a certain industry, or explore a certain industry. But at the end of the day, it's about the benefits. Like why does somebody lose weight? Is it? Is it just because they want to look better? Is it because they want to feel better? Doesn't matter? The reality is for them, there are benefits to why they want to lose weight. So you want to own your own business, you want to buy a franchise because it's easier, and it's lower risk. What are those benefits you're looking for? Well, Lance, I only have $60,000, well, great, I can get you an SBA loan
25% down 680 credit score minimum, I can help you with the lenders, and will tell me what you want to do. What is your lifestyle? Well, I have to have weekends off, I have to have nights off after I could find a brand that fits the benefits that are most important to you. So anyway, those are just some of the examples.
So that was gonna be my next question. Because I know anybody that's listening, they're probably like, do what that's for millionaires. Like I just don't have a bunch of money sitting around. And I mean, even some of my friends right now, AF post pandemic,
you know, they didn't have the time, or really the resources to sit down and fill out all that paperwork, or submit all that paperwork for like, all these loans and all these things. They gotta have a good accountant. And she's psycho anal. And I'm like, Can I just pay you to do this? And she's like, yep, just sound right here. But I actually did have to take time. And I'm like, I'm like, is this free money? Like, is this like real? I'm like, I don't have to translate cash out of stock, or transfers and things. And she's like, no, like this, this is legit. And there was a lot of help out there, like you said, but a lot of people, they don't have the support. And they don't have the right people around them to like help run their business. And so a lot of my friends, like, they're like, fuck this, I'm done. You know, they have a friend of mine owned 60 sprint stores around the in the south. And I got an email from him the other day. And he said, I'm, I'm selling like, I'm closing up shop. And I'm like, well, where are you going? Where are you going to do this anyway, and he sees been in it for a while. And he's like, this was just the icing on the cake. But he's has started a new venture. And he's fine with it. He's like, this just kind of expedited the process. But there's so many other new opportunities out there because of technology. He's like, I'm tired of this, I want to do this now. And like all the opportunities with e commerce these days, and with online being being able to make money online, and then learning how to run ads. It's not that it's easy. But once you get the strategy and the system down, Facebook and Google and tracking and pixel codes, it has made it much more obtainable to actually reach the audiences that you want to reach if you know what you're doing, and market to them and get a phenomenal ROI on the marketing. And and I although I'm not like a numbers data guru, and I used to not love it. I love it now, because it's like a game. Like, okay, well, this isn't working, let's do this. And let's do this. But again, from a franchise model, that's what people are doing at corporate, and then they're gathering all that data to help support you to be a profitable business owner.
You hit it on the head, the KPIs, the metrics, all of that, any franchise or knows exactly what it takes to ramp up. So for example, if you were buying a fitness brand, the little boutique fitness brand, they can tell you about ramping up in pre sales before you ever open how many memberships you need, what price point how to advertise it, because they've done it time and time again, and that is again, part of the validation stage. You get to hear this from other franchisees on how this gets done. And I have some fitness brands shocking to hear this, that even through the pandemic are fine.
And they're expecting an enormous 2021 due to what happened in 2020. And for the most part they held on because they had caught
They can give all their members online, across all of their brands, a little yoga, a little cycling little this little that. So it's about offering value to your customers. And franchising is an amazing way to deliver that.
One of the CO working spaces that I'm part of we, I'm co founder and my business partner, she's not great with technology in the middle, this came out, she's like, Oh, my God, we just opened in February. And it took us almost two years to build it out. And she's like, Oh, my God, what are we gonna do? I'm like, we're gonna get a zoom account for that place. And we are going to add value online. And as long as we can get it together, and get all the links to people and we are servicing them, we're asking our members, where can we best help. We got some of the best, sharpest business owners entrepreneurs out there, offering their services for free, and helping people coach and consult through the pandemic, they would never have been able to have access to some of those people. And so we lost like two members through like an eight month period, because we were able to pivot and provide value. And now that we're able to have people back in, there's people that are asking, Where are you going to keep a digital membership because I moved to North Carolina and I but it was so valuable, I'd like to continue. So that was never like the business plan until I have a digital membership. But we're like, you listen to your audience. We're like, okay, we can create that. The technology's there, we can do that. But you've got to learn to be flexible. I have a group, I have a brand that had a face to face bit professional development group for entrepreneurs. And they were outrageously successful before the pandemic, but it was all face to face. So you know exactly what they did. They went right to zoom. And while they were successful on zoom, they didn't like certain features of zoom. So guess what, they spent a quarter of a million dollars quickly. And they created their own. Yeah, that is the most incredible platform ever. And I was on I was on it the other day, I will I forgot it was it was a name they they created it. But the point is that when you participate in this, you feel like you're walking into a ballroom at a big Casino in Vegas, you see the rounds of tan, and you see people sitting there, and you sit down at a seat and you have a conversation with them before the event starts so cool. It's incredible and makes you really feel like you're there. You can have private conversations after the event as well. So this is where the adversity creates this opportunity. Because they never would have done this. Maybe they would have maybe it would have been 10 years from now. But they were really forced to you know, the old expression inner innovator die. Yeah, that's really what this comes down to. For some people. Yes, it's so true. So if someone is interested in anything,
can they just reach out to you? Absolutely. I love being guests on great podcasts like this, because so many people do reach out to me either at my website, or Well, typically through my website, but it's everything about me is I on franchising, io n franchising comm on my website, I also have a free assessment. If people are looking for a franchise, the free assessment 15 minutes it will take maybe maybe 10. It assesses really your mindset, in addition to your skills, and how you can better leverage your skills and your risk tolerance, investment level and what is it what is most suitable for you. And I find it very handy. And I basically talk to people for only about 15 minutes. And with that assessment, I could at least start an initial search. And Angela, I'm free. I'm free and easy. That's amazing. I mean, I know nothing comes free these days. Because all good and valuable things. It's always going to circle back. But what I've learned just from looking into your website is all the diverse brands that you you're familiar with them all. And so instead of people wasting their time going online googling, like, what should I be doing? I mean, typically what I've seen is there's a passion, like someone has a passion for something, and they already know what that burning passion is. But they don't they think they don't have the money to do it. Or they think they don't have the support because they're not surrounded by people. And so they can reach out to you.
Um, another question, so I had a friend who actually she was in the event planning industry.
And she, she and I both have very unique operations where, yes, we can run million dollar plus events. But what it comes down to is the strategy of everything being paperless and online. And the way that everybody is, we probably trained their brain, she was gonna become a franchise, and she had gotten some investors that she had met. So how does that work? If you have the idea, but you might not have the credit score. At the time she was going through divorce, her husband took her to the cleaners had all kinds of debt. I mean, you know, yes, I've been there. I've heard about this.
So it's like, what have you seen good outcomes for people that are trying to go out there, and they built a 30 year business and a strategy, but they don't have the credit score, they don't have the money. Have you seen good relationships come out of investors investing in these processes, and then being more in control of helping that person get there? Yeah, we might need an entire another second session to talk about this topic. But the beauty of franchising, for Matter of fact, that did a webinar not too long ago on franchising your business with one of my partners, and that's one of my favorite parts of the business is taking entrepreneurs that already have a successful business that already have their systems in place, and it doesn't have to be perfect. It just has to be something that you know, you've made successful, you're making money, you have a brand that people know even if it's a local brand, and then we can help create the franchise system, it can be very expensive, depending on who you use to set up the legal aspects. If you own a franchise, you have to have what's called a Franchise Disclosure Document and a franchise agreement and registering all the various states who want to do business. But it's, I can help, again, a free phone call to help people with that. I just set up a young lady who has a couple of salon suites, concepts, her own brand in Atlanta, I got her through another now famous restaurant brand that I set up who is doing outrageously well, even in spite of the pandemic, they did $3 million. Now, I really can't tell you who they are. But they did $3 million at a downtown major city location in the pandemic, with people lined up around the block because they have an amazing Instagram presence, amazing things that they did for their community throughout the pandemic. And I set them up for franchising as well. But this other lady, amazing salon suites brand, two locations, boom she set up for franchising didn't cost her much. But when people need partners or they need money, we can also help with that we are in the process of partnering with people, you know, to help them because think about this, we don't want to take anybody's current business, let them continue to operate that. But what if I can help them set up a franchise system, do the sales help them with the operations. And then they get to expand talk about all that incremental revenue. And that's everybody talks about multiple streams of income. Well, that's what franchising is, keep your day business, so to speak, and expand that across the country and invite others to use your business. And let me tell you private equity groups. If you're going to sell a franchise that you own, you own a couple of franchise restaurants or whatever, you're typically going to sell for about four times your cash flow, your EBIT a number. And if you own a friend, if you're a franchisor, you're the company
you could sell for 10 to 15 times that cashflow number. So, again, we can talk about this at a later date. It's incredible for independent business owners to grow through franchising, but you have to like people, because you're going to have to still have the final interview. All right, Angela, you're the boss, Meet Joe. Joe and his wife want to be a franchisor franchisee for you. Well, if you don't like people, and you don't like training people and it's not going to work, and there are people like that. We know people.
We know people like that. They don't like to play well. And if you like to see people flourish and grow like you did, and do it the right way, which I love to make people successful and for that matter, just help them along the way cuz some people just need a nudge. Have you heard the expression a friend of mine used it recently and I can't believe I haven't heard it.
yours. You know, it's not about IQ, some people think you have to be a millionaire to own a franchise, and you have to be so smart to own a company of your own. That's not true, your I will, is a lot more important than your IQ. I love I've never heard that. I love that.
And that's Yeah, I love that you're I will well, and again, you have to be a risk taker. And you also have to go into it with, there's always going to be learning opportunities should ain't perfect. If it was everybody would do it. And then we wouldn't just have 10% of I don't know the latest study that I saw of people that are out there starting new things and creating new opportunities for other people, not for everybody. So that's a great note to end on. We're out of time, I could keep on talking forever, but I'm getting the nudge from my calendar. So we will put all of your information in the show notes. If you are at all thinking about any type of franchise, you want to reach out to Lance, he's your guy, he knows his stuff. And you can go to the website, fill out the assessment and connect because all it's going to cost you is your time. And time is your most valuable asset. And it could be the most well worth 15 minutes that could actually change your life. So make sure that you reach out to Lance and thanks for being here today. Thank you so much for having me, Angela. I look forward to part two. Awesome, everybody listening thank you so much for your time and be sure to tune in next week for another episode of business unveiled by what's up GST leaders thank you so much for tuning in. And I would love for you to text me your number one takeaway, any feedback that you have, and we're also starting a new series called The number one time suck how you can be more productive and GSD and everyday life so you can be present. So if you can help us out and let me know just text me your number one time suck 6155 to 78755 Let's get shit done.