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Study Hall: Legal Essentials and Strategic Insights · Earn Your Leisure

• 0:01
  Speaker 1: Earners. What's up.
• 0:02
  Speaker 2: You ever walk into a small business and everything just
• 0:04
  Speaker 2: works like The checkout is fast, the receipts are digital,
• 0:08
  Speaker 2: tipping is a breeze, and you're out the door before
• 0:11
  Speaker 2: the line even builds. Odds are they're using Square. We
• 0:15
  Speaker 2: love supporting businesses that run on Square because it just
• 0:18
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• 0:21
  Speaker 2: at a pop up market, or even one of our
• 0:23
  Speaker 2: merch partners, Square makes it easy for them to take payments,
• 0:27
  Speaker 2: manage inventory, and run their business with confidence, all from
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• 0:35
  Speaker 2: just thinking about launching something soon, Square is hands down
• 0:38
  Speaker 2: one of the best tools out there to help you start, run,
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  Speaker 2: and grow. It's not just about payments, it's about giving
• 0:45
  Speaker 2: you time back so you can focus on what matters
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  Speaker 2: most Ready. To see how Square can transform your business,
• 0:51
  Speaker 2: visit Square dot com backslash go backslash eyl to learn
• 0:56
  Speaker 2: more that Square dot com backslash, go backslash eyl. Don't wait,
• 1:01
  Speaker 2: don't hesitate. Let's Square handle the back end so you
• 1:04
  Speaker 2: can keep pushing your vision forward. This episode is brought
• 1:10
  Speaker 2: to you by P and C Bank, a lot of
• 1:12
  Speaker 2: people think podcasts about work are boring, and sure, they
• 1:16
  Speaker 2: definitely can be, but understanding of professional's routine shows us
• 1:20
  Speaker 2: how they achieve their success little by little, day after day.
• 1:24
  Speaker 2: It's like banking with P and C Bank. It might
• 1:27
  Speaker 2: seem boring to save, plan and make calculated decisions with
• 1:30
  Speaker 2: your bank, but keeping your money boring is what helps
• 1:33
  Speaker 2: you live a more happily fulfilled life. P and C
• 1:36
  Speaker 2: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 1:41
  Speaker 2: eighteen sixty five is a service mark of the PNC
• 1:44
  Speaker 2: Financial Service Group, Inc. P and C Bank National Association
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  Speaker 2: Member FDIC.
• 1:51
  Speaker 3: It's easy to build through franchising once you sell your
• 1:55
  Speaker 3: first one, okay, so legal requirements and documentation this is boring.
• 2:01
  Speaker 3: It may be boring for some, but this is what
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  Speaker 3: you really need to understand so you don't get in trouble.
• 2:07
  Speaker 3: So the FDD is like and write that down and
• 2:13
  Speaker 3: research it later. The FDD is the document that's like
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  Speaker 3: one hundred pages and it teaches you all the things
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  Speaker 3: about the franchise. So most people hire franchise consultants to
• 2:26
  Speaker 3: put together this information for them. It has to be
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  Speaker 3: done by a franchise attorney, a whole franchise team. Because
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  Speaker 3: franchising is completely different than the regular business world. This
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  Speaker 3: is not a template. This is not something you can
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  Speaker 3: just create on your own. It's a legal document that
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  Speaker 3: is actually monitored by the government, so you have to
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  Speaker 3: make sure it's up to par. But it contains all
• 2:51
  Speaker 3: the information about the franchise, including your background, what the
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  Speaker 3: franchise fee is, and other costs. So it literally enfranchising.
• 3:02
  Speaker 3: You can't promise success. This is another thing that's absolutely
• 3:06
  Speaker 3: amazing about the world of franchising because there is a
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  Speaker 3: section it's called Item nineteen. You can write that down.
• 3:14
  Speaker 3: It's the most important part of this document, Item nineteen.
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  Speaker 3: In Item nineteen, it tells you it's the financial representation
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  Speaker 3: that you as the franchise or disclosed to the public.
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  Speaker 3: It can be a P and L. It could be
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  Speaker 3: your gross sales for one year. It could be a
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  Speaker 3: pie chart, it can be anything. But when you sell
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  Speaker 3: a franchise, and this is very important, the only numbers
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  Speaker 3: you can speak about are the numbers that you list
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  Speaker 3: in item nineteen. So a lot of people are strategic.
• 3:49
  Speaker 3: Sometimes people don't. You don't have to have a financial representation.
• 3:54
  Speaker 1: Which is even crazier.
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  Speaker 3: You can literally turn your You can franchise your business,
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  Speaker 3: sell it to someone and not tell them how much
• 4:01
  Speaker 3: you've made. Ethically, that's wrong if you know you didn't
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  Speaker 3: make anything, but if you made ten dollars twenty dollars,
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  Speaker 3: you can still sell your business as a franchise, but
• 4:12
  Speaker 3: you're gonna have problems if someone is unable to make money.
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  Speaker 3: So that's why you want to try it. Make sure
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  Speaker 3: it's something you've tried and it's worked before you decide
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  Speaker 3: to sell it. But you don't have to disclose how
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  Speaker 3: much money someone can make from buying your opportunity. And
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  Speaker 3: actually you can't. It's called a promise of success and
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  Speaker 3: you can't legally do it. So you can put anything
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  Speaker 3: you want and you're selling it based off of what
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  Speaker 3: you put in item nineteen, so you can be strategic.
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  Speaker 3: You don't have to reveal what you don't want to reveal.
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  Speaker 3: You could just say I made this much gross and
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  Speaker 3: you don't have to reveal your net, which is insane,
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  Speaker 3: but it's true. So that's that's what's really interesting about
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  Speaker 3: this franchise world. But the FDD is very important. It's
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  Speaker 3: the main document you need and then there's a difference
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  Speaker 3: between franchise attorneys and contract attorneys. So you can't go
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  Speaker 3: to someone who's like a regular attorney like make me
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  Speaker 3: an FDD because they're gonna they're gonna say okay, because
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  Speaker 3: they want your money, but it's not gonna be what
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  Speaker 3: a franchise attorney would create. And franchise attorneys know what
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  Speaker 3: to put in so you don't get in trouble. So
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  Speaker 3: if you go to a contract attorney, they'll probably do research,
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  Speaker 3: but they're not specialized enough to keep you out of
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  Speaker 3: trouble in the franchising world, okay, so make sure it's
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  Speaker 3: a franchise attorney working with you. So developing a franchise
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  Speaker 3: business plan, So when you're considering franchising your business, you
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  Speaker 3: have to develop a comprehensive franchise business plan which is
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  Speaker 3: separate from like any other regular business plan. So it
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  Speaker 3: outlines the key components of your franchise system and it's
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  Speaker 3: basically the roadmap. So here are some of the things.
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  Speaker 3: It's very similar to what you would see in a
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  Speaker 3: regular business plan, with the exception of some things. So
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  Speaker 3: the executive summary, so it's an overview of your business,
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  Speaker 3: your mission statement, vision, goals. You know, that's pretty much
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  Speaker 3: standard information about your existing business is history, it's success,
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  Speaker 3: and then the franchise concept.
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  Speaker 1: So it's a detailed description of your.
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  Speaker 3: Franchise system, including their products or services and all those
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  Speaker 3: you know, things that we sometimes overlook. Now I want
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  Speaker 3: to say this because I just thought about it. So
• 6:35
  Speaker 3: when you franchise, say you you have a spa and
• 6:41
  Speaker 3: you sell massage lotion, right, you can actually create your
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  Speaker 3: own lotion, and you can manufacture your own products and
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  Speaker 3: sell them to your franchise ease, and they're required to
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  Speaker 3: buy them from you. So within all these legal documents,
• 6:58
  Speaker 3: you're selling them a business, but you can also create
• 7:01
  Speaker 3: your own products, create your own everything, and within those
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  Speaker 3: franchise documents, they have to buy it from you. So
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  Speaker 3: now you're creating multiple streams of income that you're in.
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  Speaker 3: You're receiving every time they need to place in order,
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  Speaker 3: they're placing it with you. They're paying you. Guess what, guys,
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  Speaker 3: I hope, I hope y'all are with me. For those
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  Speaker 3: who stayed around, this is the bond. You're ready for this.
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  Speaker 3: So I told you that when you franchise, you can
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  Speaker 3: sell it ten twenty thousand it could be anything, but
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  Speaker 3: there's also industry standards. But guess what, you charge a
• 7:38
  Speaker 3: percentage of their gross profit each month. So if you
• 7:44
  Speaker 3: charge seven percent, you're going to get seven percent of
• 7:47
  Speaker 3: their gross, not their next they're gross every single month.
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  Speaker 3: And that is how people build wealth through franchising.
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  Speaker 1: It's not about the upfront fee.
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  Speaker 3: That's great, you know that'll clear off your COVID, that
• 8:02
  Speaker 3: gets keep you out of prison. About pay your taxes,
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  Speaker 3: But then the real wealth is off the residual income
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  Speaker 3: that you earn. So think about how much you make
• 8:12
  Speaker 3: per year. You're gonna get seven percent of that every
• 8:15
  Speaker 3: single month for ten years. That is how you close
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  Speaker 3: the wealth gap. And that is how business owners can
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  Speaker 3: just jump start their careers in a whole other direction
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  Speaker 3: and create real wealth because it's not about you. It's
• 8:32
  Speaker 3: not about how much you can make. It's like how
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  Speaker 3: much are you able to leave your children, your children's children,
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  Speaker 3: like what kind of assets have you built for them?
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  Speaker 3: And franchising is a great way to do that. You
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  Speaker 3: put the franchise entity and the trust y'all. I know
• 8:47
  Speaker 3: you guys had to trust somebody on here talking about trust.
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  Speaker 3: Put it in your trust, your whole bloodline eats. Okay,
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  Speaker 3: So that's a great way to do it. So marketing
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  Speaker 3: and support, you have to have a plan. This is
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  Speaker 3: how you market the business. Now, this is very very important.
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  Speaker 3: You have to be able to tell people on a
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  Speaker 3: piece of paper, this is how you get customers. Now,
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  Speaker 3: what happens is most business owners don't have any systems
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  Speaker 3: or processes written down.
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  Speaker 1: They just hire.
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  Speaker 3: Somebody and they're like, they're yelling.
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  Speaker 1: At them, do this, do that.
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  Speaker 3: There's no organization whatsoever, and that's why they can't scale.
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  Speaker 3: Franchises are amazing. And even if you're even if you
• 9:34
  Speaker 3: feel like I don't want to be a franchise, I
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  Speaker 3: tell everyone if you own a small business, you should
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  Speaker 3: go through the process because it's going to teach you
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  Speaker 3: how to build something that you can scale.
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  Speaker 1: And it's it's great.
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  Speaker 3: Practice and it teaches you on a higher level than
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  Speaker 3: you could ever learn in the regular world of business.
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  Speaker 3: And so you have to be able to tell them like,
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  Speaker 3: this is how you this is what you say in
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  Speaker 3: your Facebook ad. That's how you get customers. This is
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  Speaker 3: where you should market. These are the template you should use.
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  Speaker 3: So all those things need to be written down and
• 10:09
  Speaker 3: a great way to get started, and this is what
• 10:11
  Speaker 3: I did.
• 10:12
  Speaker 4: An illegal alien from Guatemala charged with raping a child
• 10:15
  Speaker 4: in Massachusetts. An MS thirteen gang member from Al Salvador
• 10:19
  Speaker 4: accused of murdering a Texas man of Venezuelan charged with
• 10:24
  Speaker 4: filming and selling child pornography in Michigan. These are just
• 10:28
  Speaker 4: some of the heinous migrant criminals caught because of President
• 10:31
  Speaker 4: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 10:35
  Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 10:40
  Speaker 4: crossings are at the lowest levels ever recorded, and over
• 10:43
  Speaker 4: one hundred thousand illegal aliens have been arrested. If you
• 10:47
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• 10:51
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• 10:55
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• 10:58
  Speaker 4: app and leave now, you could be allowed to return legally.
• 11:02
  Speaker 4: Do what's right. Leave now. Under President Trump, America's laws,
• 11:07
  Speaker 4: border and families will be protected. Sponsored by the United
• 11:11
  Speaker 4: States Department of Homeland Security,