Latest / The SmallBizChat with Melinda Emerson / How to Franchise Your Business with Keenan Fisher

Transcript

How to Franchise Your Business with Keenan Fisher · The SmallBizChat with Melinda Emerson

• 0:02
  321.
• 0:07
  Lift off.
• 0:09
  Ending small business failure.
• 0:11
  Welcome to the Small Biz Chat podcast with the number one small business expert, Melinda
• 0:17
  Emerson.
• 0:18
  Melinda's goal is to end small business failure, and she'll give you the information
• 0:23
  you need to succeed and live the life you dream of.
• 0:26
  Now here's your host, the smallbizchat lady herself, Melinda Emerson.
• 0:29
  Herself, Melinda Emerson.
• 0:34
  Have you subscribed to the Small Biz Chat podcast?
• 0:37
  Well, it's time.
• 0:38
  Every Wednesday, we offer listeners bite sized actionable tips to start and grow a successful
• 0:45
  small business.
• 0:45
  In just 20 minutes or so a week, you can get a ton of insight and resources to propel your
• 0:52
  business forward.
• 0:53
  Be sure to subscribe to the Small Biz Chat podcast today.
• 0:58
  Hi, everybody.
• 0:59
  I'm Melinda Emerson, the small biz lady.
• 1:01
  I wanna welcome you to another episode of the Small Biz Chat podcast.
• 1:08
  Our mission is to end small business failure, and this is a peer to peer mentoring show.
• 1:13
  So here, you're gonna get advice that you otherwise would have to pay for.
• 1:16
  So what we want you to do is do us a favor.
• 1:18
  We want you to subscribe to this channel.
• 1:21
  We want you to share this information.
• 1:24
  We want small business owners to win.
• 1:26
  Now it's time for me to introduce my guest, Keenan Fisher.
• 1:30
  He's the managing partner of Tommy Gun, a Canadian based barbershop and grooming slot
• 1:35
  known for its commitment to providing a unique and exceptional grooming experience.
• 1:41
  Keenan has revolutionized the modern barbershop experience while building a thriving franchise
• 1:47
  across Canada and beyond.
• 1:49
  Keenan's business journey began at 12.
• 1:51
  He helped his family's dog treat factory, and later, his family founded Charter Salons.
• 1:57
  That early exposure to business gave him the foundation to carve the path in the barbershop
• 2:03
  industry.
• 2:04
  His vision led to the creation of Tommy Gun's, a brand that merges traditional barbering with
• 2:10
  a modern touch.
• 2:11
  For more information, go to us.tommygun's.com.
• 2:16
  Hi, Keenan.
• 2:17
  Welcome to the Small Business Chat podcast.
• 2:20
  Thanks, Melinda.
• 2:20
  Excited to be here today.
• 2:22
  Appreciate it.
• 2:23
  Alright.
• 2:24
  So tell us about Tommy Gun's.
• 2:26
  You know, I I kinda get my hair done at a less more different kind of salon than the one that
• 2:32
  you run.
• 2:32
  So tell me about how your business works.
• 2:35
  Absolutely.
• 2:36
  So we started Tommy Gun's because we saw a big gap in the marketplace.
• 2:39
  And in our industry, you basically had 2 options.
• 2:42
  You could go somewhere convenient that wasn't the experience you wanted, but it was available
• 2:46
  today.
• 2:47
  Or if you wanted to go somewhere with a great experience, you had to book 4 to 6 weeks out.
• 2:51
  And and us guys, we're not typically great at planning ahead.
• 2:54
  We usually say, oh, I got a date tonight or a meeting tomorrow, and I need to get my hair
• 2:58
  done.
• 2:59
  And so with that type of planning, we typically weren't getting the experience we deserve.
• 3:03
  So we went out to to to set up a concept where you could get an ultimate barber experience
• 3:08
  from start to finish, but when you want it.
• 3:11
  So we integrated technology where you could get into queue system the day you need your hair,
• 3:18
  hair done and meet your service and still get a great and elevated experience without having to
• 3:23
  compromise.
• 3:24
  Alright.
• 3:25
  So tell me, how many years did you run your business before you turned it into a franchise?
• 3:29
  So we're we're a bit unique in the fact that we had a franchise background prior to Tommy Gun.
• 3:34
  So when we started Tommy Gun's, we were intent on creating a franchise based model from day 1.
• 3:41
  So, essentially, we had that in mind from the onset.
• 3:45
  Mhmm.
• 3:45
  But you can't obviously just franchise based off an idea because you're selling a business
• 3:49
  model that's proven.
• 3:51
  Right?
• 3:51
  That's the benefit of franchising is, you know, the franchisor paid the learning tax of
• 3:55
  figuring out, made mistakes, and built out the systems that work.
• 3:59
  So we started with our first location in Red Deer, Alberta, which is a small Canadian town.
• 4:04
  And, and we opened the 1st year, and we doubled our initial budget.
• 4:08
  So, you know, we're high fives all around, feeling pretty good about ourselves.
• 4:12
  And, but knew from our experience that, okay, just because you're, you know, successful at
• 4:17
  one location doesn't mean you can be successful with many.
• 4:19
  So we built a strategy where we essentially started franchising, but we franchised with our
• 4:25
  within our inner circle, so people that we were already doing business with.
• 4:29
  And we went into multiple different types of markets and different types of real estate to
• 4:33
  see how the concept would take.
• 4:35
  Because what we needed to understand is, you know, that we weren't the reason it was
• 4:39
  successful of being in our home market where we live, promoting it to our friends and family,
• 4:44
  and that it was a scalable and expandable type business where the where the market was big
• 4:49
  enough to grow.
• 4:50
  So we went to about 5 different markets under that strategy, and luckily, they were all
• 4:55
  successful.
• 4:56
  Right?
• 4:56
  So we learned a lot through that process.
• 4:58
  You You know, we built out systems and train and training and marketing programs, learned
• 5:03
  how different markets function.
• 5:05
  And once we got to that point, then we knew, okay, now we have something that we really
• 5:10
  believe we can scale on, and we've our big focus was building in our systems in place so
• 5:14
  that as we scale, they can keep up and have the proper level of training and support to make
• 5:19
  sure that those franchise partners are very successful as they open.
• 5:23
  So how long did that whole process take?
• 5:25
  Like, how long did it take you to get 5 that were all rocking on all cylinders before you
• 5:30
  said, alright.
• 5:31
  We're ready.
• 5:32
  Now we're ready to go to market with the franchise.
• 5:35
  That was about a 4 year process.
• 5:37
  Okay.
• 5:37
  Yeah.
• 5:37
  And then and then we pressed go, and then kind of expanded out that network.
• 5:42
  Alright.
• 5:43
  So how many franchisees do you have now?
• 5:46
  So we have about 40 franchisees over across, over a 100 locations.
• 5:51
  So 80% of our franchise partners are multiunit, which was a a big thing for us as we we weren't
• 5:57
  selling a job.
• 5:58
  We were selling a business they could operate.
• 6:00
  Right?
• 6:00
  So by doing that, then you have a scalable system.
• 6:03
  So, and that's been our best validator as well.
• 6:07
  We've we've always, granted single unit operators.
• 6:10
  And then because of the the success, they've they've wanted to reinvest, and we're obviously
• 6:15
  excited to grow with our existing people and been able to expand off of that.
• 6:18
  Mhmm.
• 6:19
  Mhmm.
• 6:19
  So so I love how you talked about the initial phase where you said you had to go out and get
• 6:24
  5 because you wanted to prove that this thing worked in different shapes and sizes.
• 6:28
  Right?
• 6:28
  So, what kind of experts did you rely on when you decided to turn this thing into a
• 6:36
  franchise?
• 6:36
  Because even though you knew franchising, you still needed some help.
• 6:40
  Right?
• 6:41
  Absolutely.
• 6:41
  We still need help today all the time.
• 6:43
  We're we're always learning.
• 6:44
  So, you know, I'm a big believer in having a great and strong network around you and always
• 6:52
  looking to learn from from not only with rate within your industry, but from outside of it as
• 6:56
  well.
• 6:57
  Some of the key things we did was attending, like, IFA and CFA, which are the International
• 7:02
  Franchise Association and Canadian Franchise Association Conferences.
• 7:06
  Those were incredible for us in in making the right contacts contacts and building our
• 7:11
  network.
• 7:12
  I'm not very shy, so I was reaching out to other leaders of of franchise systems that I
• 7:17
  admired, to see who would take my call and and give advice and and share best practices and
• 7:23
  and share their wins and losses.
• 7:24
  So we're we're we're, willing to pay our own learning tax, our own learning curve, but also
• 7:30
  wanted to learn from others as well.
• 7:32
  So, you you know, I I I think, you know, that you have to have the mindset of knowing that
• 7:36
  you're not gonna know everything and and you're gonna have your learning situations.
• 7:40
  But if you can seek that information from the outside, that's gonna accelerate your growth.
• 7:46
  Right?
• 7:46
  And you'll make less mistakes internally because you can learn from others.
• 7:50
  And and so we've taken that approach and continue to today, for
• 7:55
  sure.
• 7:55
  So tell me though about, like, did you have to have a, you know, franchise development
• 7:59
  consultant, your lawyer, your, you know, like, your finance partner?
• 8:04
  Like like, tell me about those kinds of partners that you had to have in the beginning.
• 8:09
  100%.
• 8:09
  So, great one you brought up is having a great franchise lawyer.
• 8:14
  And not every franchise lawyer is created equal.
• 8:17
  So it's very important to get references and and vet out the proper franchise lawyer that's
• 8:22
  gonna help you get to where you need to be.
• 8:26
  And there's lawyers out there that specialize and spend a 100% of their time simply in the
• 8:31
  franchise and space.
• 8:32
  And and that's my biggest recommendation is get there early, have great and strong franchise
• 8:37
  agreements and the legal process.
• 8:40
  If you do that right from the onset, it saves a lot of problems later on.
• 8:44
  So that was a great one.
• 8:45
  And then access to capital is critical.
• 8:47
  So we we, worked hard early to create partnerships and alignments with different
• 8:53
  lending, institutions that could provide bespoke and and standardized programs for our
• 8:59
  franchise partners.
• 9:01
  So in the US, that's you know, a lot of that is the SBA programs.
• 9:04
  In Canada, we have our CSBFP programs, which are a similar, backed, back program where the
• 9:09
  banks have a separate backing.
• 9:12
  And those are those are critical in growth because without access to capital, you can't
• 9:16
  grow.
• 9:17
  Got it.
• 9:18
  Got it.
• 9:19
  So that was good.
• 9:19
  So that was pretty much what you needed.
• 9:21
  Did you guys do your own franchise development because you kind of were familiar with the
• 9:25
  franchise world?
• 9:26
  We did.
• 9:26
  We did.
• 9:27
  So my my approach to franchising or our approach is really though you do have to have
• 9:32
  lots of different lines in the water.
• 9:33
  So if you ever been fishing in the back of the fishing boat, you got 5 or 6 lines at different
• 9:37
  depths with different bait, and it's the same thing in in franchising.
• 9:41
  So we you know, you exhaust your own network.
• 9:44
  You you market to to your customer base.
• 9:47
  You work with different franchise brokers.
• 9:50
  You do the franchise shows, and different different lines work better at different times.
• 9:56
  Right?
• 9:57
  You need to you need to have as many touch points as you can, because it's not just about
• 10:02
  finding, you know, someone who wants to invest in your concept.
• 10:05
  You're also trying to find the right people.
• 10:07
  So you're gonna talk to a lot of potential investors, potential franchise partners, before
• 10:13
  you get the right ones.
• 10:14
  And and that's a real critical thing again for especially for young franchisors, but really,
• 10:18
  you never wanna lose that is it's very hard to say no to someone that wants to cut a check for
• 10:24
  your shop if they're not the rep
• 10:26
  Right.
• 10:27
  Right.
• 10:28
  Early days.
• 10:29
  Right?
• 10:29
  You're you're running a thin margin, and, but that's critically important.
• 10:33
  Right?
• 10:33
  And we've had to do it where it's like, I coulda really used that franchise fee.
• 10:37
  But Right.
• 10:38
  But you're right.
• 10:39
  Nope.
• 10:39
  No.
• 10:39
  Thank you.
• 10:40
  Take your money.
• 10:41
  So did you guys do all your own recruitment, or do you guys have a firm that does your sales
• 10:46
  for you?
• 10:47
  We we do it mostly internally, and then we do a little bit of external as well where we've
• 10:52
  created alignment with franchise brokers.
• 10:55
  Mhmm.
• 10:55
  And and so and that's about all building our network as well.
• 10:58
  So we we attend the shows.
• 11:00
  We meet all the brokers, we we share what we do, and so you create those alliances.
• 11:06
  And and then when they got individuals that are a great fit, they can typically bring them to
• 11:11
  you.
• 11:11
  And and so a lot of lot of franchisors too are are scared away of by paying the franchise
• 11:17
  broker fees.
• 11:18
  Uh-huh.
• 11:19
  Right?
• 11:19
  The the big commissions and Yeah.
• 11:21
  They do like what they get, 60, 70%.
• 11:23
  I mean, it's it's a good chunk, don't they?
• 11:26
  It it feels like a lot.
• 11:27
  It does.
• 11:28
  But, you know, I I would say it's worth it.
• 11:30
  Right?
• 11:30
  Because they're pre vetting these individuals.
• 11:33
  So when you're doing it on your own, you gotta do start to finish vetting.
• 11:36
  And then they're they're getting people where they have spent a lot of time with them.
• 11:40
  So by the time they get to you, there's a higher likelier chance that they're gonna be a
• 11:45
  good fit.
• 11:46
  Mhmm.
• 11:46
  So it's it's worked great for us, but we've done all both all the different lanes, and and
• 11:51
  we've got incredible operators through through each and every one of them.
• 11:55
  Okay.
• 11:55
  Okay.
• 11:56
  So that that cost per acquisition cost, you're like, hey.
• 11:58
  You just gotta pay it to get to get quality.
• 12:01
  Yeah.
• 12:01
  You gotta pay the play, I guess.
• 12:04
  So so talk to me about, how do you handle franchisee feedback.
• 12:08
  Right?
• 12:08
  Because everybody's not happy every day that they're a Tommy Gun franchisee.
• 12:13
  So how do you, I mean, how do you solicit feedback from them, and how do you respond to
• 12:18
  it?
• 12:19
  Well, to me, it's incredibly important.
• 12:21
  Right?
• 12:22
  So the the magic doesn't happen in the boardroom in our business.
• 12:25
  It happens in the field, in the shops.
• 12:27
  That that's really the business that we're in.
• 12:29
  So it's incredibly important for us to stay connected with it.
• 12:32
  So we're very proactive in that approach.
• 12:35
  So, obviously, you gotta deal with the things that just come out or up out of the blue where
• 12:39
  someone has a call and and and it's an unsolicited conversation.
• 12:42
  But we take a proactive approach.
• 12:44
  So we've developed a brand advisory council that's made up of elected, franchise partners
• 12:49
  throughout throughout our network.
• 12:51
  Mhmm.
• 12:51
  And we work hand in hand with them on an ongoing basis on how how the business is going,
• 12:57
  what's working in in our marketing fund, where's the feedback, what can we do better
• 13:01
  operational operationally.
• 13:03
  When we're building new programs, we're we're helping them engage in the process early so
• 13:08
  that by the time it hits the street or gets out into the con to the network, it's been vetted
• 13:13
  and tested and has a much higher chance of success.
• 13:16
  So to to us, it's critical.
• 13:18
  Like, if we were to lose touch with what's happening at the shop level, it would be very
• 13:22
  hard for us to do a great job as a support office.
• 13:25
  Mhmm.
• 13:25
  So we're we're definitely take go on the front foot on that and take a proactive approach and
• 13:30
  and, push the dialogue.
• 13:32
  Alright.
• 13:33
  And when we come back, I wanna talk to you about the support systems that you have for
• 13:37
  your franchisees after the initial training.
• 13:42
  You are watching the Small Biz Chef podcast, and we will be right back.
• 13:52
  Alright, Keenan.
• 13:53
  So I have another question for you.
• 13:56
  Tell me what kinds of things do you do?
• 13:59
  Because I know that, you know, when franchisees first sign up, they come for a week or 2, and
• 14:04
  they get trained or whatever.
• 14:05
  Like, what do you guys do on an ongoing basis, though, to support your franchisees?
• 14:13
  Yeah.
• 14:14
  Absolutely.
• 14:14
  So we obviously have the base, which I call the baseline.
• 14:17
  So you have your operations manual and your training systems and all that.
• 14:21
  But for us, we view it as a business partnership, and our role in the business is to
• 14:25
  support their success operationally, financially, and so on.
• 14:29
  So we take a real in-depth approach where we'll actually do, 1 on 1 business analysis meetings
• 14:35
  where we're taking all the tools we've developed, all the systems, and doing a deep
• 14:39
  dive in their operational business, the financial support, or performance, and build
• 14:44
  out very detailed annualized plans for for our business owners that they can execute on to
• 14:49
  improve the performance of their business.
• 14:52
  So we we take a very hands on approach.
• 14:54
  We have a robust operational and marketing team that works with the network to to help them
• 14:59
  grow and and execute at a high level.
• 15:01
  So we we focus on operational excellence, and that's been our approach to the business versus
• 15:07
  versus just handing over materials and documents that they're supposed to follow.
• 15:11
  We have all those things, but we believe in a more hands on approach and and being that real
• 15:16
  true support to to the business partners.
• 15:19
  That's actually really impressive.
• 15:20
  I actually have not heard of anyone doing a 1 on 1 business analysis with their with their
• 15:25
  franchisees.
• 15:26
  That's really smart.
• 15:28
  So how many years now have you guys franchise been in existence?
• 15:32
  So we are 2 weeks away from our 15th anniversary.
• 15:36
  Alright.
• 15:37
  Alright.
• 15:37
  The big one five.
• 15:39
  That's awesome.
• 15:40
  And so I I would be remiss if I didn't ask.
• 15:42
  So how much does it cost to be a Tommy Gun?
• 15:45
  How much does it cost to be a Tommy Gun franchisee?
• 15:49
  Yeah.
• 15:49
  Absolutely.
• 15:50
  I mean, it's it's a somewhat market dependent because some markets are a little different,
• 15:54
  but a big part of the cost is the build outs.
• 15:56
  But on average, Tommy Gun's to get in is in between 450,550 1,000.
• 16:01
  That's a turnkey investment, so it includes equipment, inventory, fees, building the shop
• 16:06
  out, all all all in.
• 16:08
  Mhmm.
• 16:08
  Alright.
• 16:09
  Alright.
• 16:09
  So and people buy 2 or 3 from you at a time?
• 16:13
  Is that what you said?
• 16:14
  Oftentimes, they do.
• 16:15
  Yeah.
• 16:15
  And they they typically start with 1, and it goes well, and and and we go from there.
• 16:20
  So, yeah, over 80%, like I said before, multiunit, which for us is our our best
• 16:25
  validation and complement.
• 16:27
  We're we're always excited to grow with our existing
• 16:30
  group.
• 16:30
  I love it.
• 16:31
  I love it.
• 16:31
  And last question, what is the best business advice anyone has ever given you?
• 16:39
  The best business advice I ever had is is just clearly to surround yourself with great people.
• 16:46
  You're you you know, to be successful, you don't need to know everything.
• 16:49
  You don't be need to be the smartest person in the world.
• 16:51
  You don't need to be the most skilled or talented, but you gotta recognize your vision,
• 16:55
  recognize what you're good at, and then surround yourself with people that are
• 16:58
  supportive, wanna elevate you, and make up for the areas that you're not, you know,
• 17:02
  particularly great in or that aren't your strong points.
• 17:05
  So doing that, having multiple mentors, and just surrounding yourself with an amazing
• 17:11
  network.
• 17:11
  And that that's been kind of my approach because of the advice I got early on in my
• 17:16
  life, mostly from my dad, to be clear.
• 17:17
  He's he was my first mentor and and still is.
• 17:20
  And, and that's he he he pushed that on me, I think, probably since before I even understood
• 17:26
  what he was talking about, and that's by far the best advice I've ever had.
• 17:31
  Yeah.
• 17:31
  Well, my pop was my first business mentor too, so I can completely relate, to advice that
• 17:37
  occurred to you later.
• 17:38
  Like, damn.
• 17:38
  That old man might've know what he was talking about.
• 17:40
  Right?
• 17:40
  So, anyway, thank you so much for being a part of the Small Biz Chat podcast.
• 17:45
  I understand.
• 17:46
  Yeah.
• 17:46
  Your your advice was very, very helpful.
• 17:49
  So I know my audience will really appreciate it.
• 17:55
  Thanks for listening to the Small Biz Chat Podcast with Melinda Emerson.
• 17:59
  Subscribe to this podcast wherever you listen to podcasts, and join us next Wednesday for
• 18:04
  more fantastic information and interviews.
• 18:07
  You can find more sources and small business success strategies by visiting Melinda's
• 18:12
  website, succeed as your own boss.com.
• 18:15
  Thanks again for listening, and we'll see you next week.