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Study Hall: How to Turn a Business into a Franchise · Earn Your Leisure

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  Speaker 5: My graduates from my school being forced.
• 2:03
  Speaker 4: Back drop drop, drop, drop drop. It's one thing to
• 2:19
  Speaker 4: have a successful business, right, but it's another thing to
• 2:22
  Speaker 4: actually open franchise operation. And I guess it's hard to do.
• 2:28
  Speaker 4: That's why you're the youngest one in the country. Youngest people.
• 2:33
  Speaker 5: It's not hard to do, it's hard to figure out
• 2:35
  Speaker 5: if you don't have any guidance.
• 2:37
  Speaker 6: Like obviously we've never I've never met anybody that owned
• 2:40
  Speaker 6: their own franchise, so like yeah, like oh, was like
• 2:43
  Speaker 6: what was the guidance?
• 2:44
  Speaker 2: Like what was the mental or the moment that you said,
• 2:46
  Speaker 2: this is what I have to do now?
• 2:48
  Speaker 5: So there, I was really frustrated. One day. I don't
• 2:51
  Speaker 5: remember what was frustrating me, but I went to Barnes
• 2:55
  Speaker 5: and Nobles and I googled the top five franchise consulting
• 2:59
  Speaker 5: for firms and I called all five to see who
• 3:03
  Speaker 5: would call me back first, because at that point, I
• 3:07
  Speaker 5: was like, I don't want to open multiple locations.
• 3:10
  Speaker 4: Well can you talk about that? Even before so I
• 3:13
  Speaker 4: actually asked you that question. I'm like, what made you say, okay,
• 3:16
  Speaker 4: instead of opening I want to shop in Newark? I
• 3:18
  Speaker 4: want to shop and broken, but it's gonna be What
• 3:20
  Speaker 4: made you want to just say I want to do
• 3:21
  Speaker 4: franchises and have other people?
• 3:23
  Speaker 5: And I left this out. I did own another location
• 3:26
  Speaker 5: at that point, so I owned two locations and I
• 3:29
  Speaker 5: was working on three. But I was like, I don't
• 3:32
  Speaker 5: I can't handle it on my own.
• 3:33
  Speaker 4: Why so why did you?
• 3:35
  Speaker 5: Why did you tell you I wanted to maintain some
• 3:38
  Speaker 5: free time for my family, for my leisure, and for work.
• 3:42
  Speaker 5: So I didn't There's a lot of business owners who
• 3:46
  Speaker 5: just run around all day long to multiple locations and
• 3:49
  Speaker 5: then burn out at night. But I always wanted to
• 3:52
  Speaker 5: leave time for myself because I felt like that's important
• 3:55
  Speaker 5: and I didn't want the business to overrun me. So
• 4:00
  Speaker 5: I wanted to allow other people to open. And I
• 4:03
  Speaker 5: realized that in the United States you have to franchise
• 4:06
  Speaker 5: if you allow somebody else to use your logo and
• 4:10
  Speaker 5: your business name.
• 4:11
  Speaker 4: Can you talk about that? I just found that out,
• 4:13
  Speaker 4: So you can't. You can't let somebody else use it
• 4:16
  Speaker 4: unless it's a franchise.
• 4:17
  Speaker 5: And there's a lot of people who like license their method.
• 4:22
  Speaker 5: There's there's stores, but you actually cannot. You're not supposed to,
• 4:28
  Speaker 5: and if you get caught, it's a it's a big fine.
• 4:31
  Speaker 5: You have to become a franchise if they are following
• 4:34
  Speaker 5: your trademarks, logos and name.
• 4:38
  Speaker 2: So your trademark is the Kika method.
• 4:40
  Speaker 5: Kika Stretch Studios, the Kika Method. Yeah, so I also franchise,
• 4:47
  Speaker 5: I mean franchise trademarked most of the trademarks myself. I
• 4:53
  Speaker 5: just sat in front of a computer for hours until
• 4:57
  Speaker 5: I figured it out and.
• 4:58
  Speaker 4: So so all right, so you looked at the consultant firms, right,
• 5:03
  Speaker 4: and what happened at that point?
• 5:04
  Speaker 5: So the first one that called me back the guy
• 5:07
  Speaker 5: Chris Connor out of Atlanta Franchise Marketing Systems, and he
• 5:13
  Speaker 5: pitched the whole concept of working with me, like I
• 5:15
  Speaker 5: think this could work. I'll be on a flight tomorrow
• 5:18
  Speaker 5: and I'm like, really, okay, mind you. He was the
• 5:22
  Speaker 5: only one that called me back. The other people called
• 5:26
  Speaker 5: me back like three days later. I'm like not. And
• 5:29
  Speaker 5: so he came. He looked at my studio, he listened
• 5:32
  Speaker 5: to the whole model, and he's like, you could definitely
• 5:35
  Speaker 5: do this. He helped franchise Massage Envy and a lot
• 5:39
  Speaker 5: of other big franchises. So and his price was also
• 5:42
  Speaker 5: like lower than all of the other franchise company fifteen
• 5:46
  Speaker 5: thousand okay, yeah, most of them are twenty and up.
• 5:51
  Speaker 4: And what do you get put for that? Like, he
• 5:53
  Speaker 4: sets it up.
• 5:54
  Speaker 5: He sets up the whole franchise model, the FDD.
• 5:58
  Speaker 4: All right, So okay, so he came and then he's
• 6:00
  Speaker 4: the one that set it up for you.
• 6:02
  Speaker 5: He's the one that pulled the resources out of me
• 6:06
  Speaker 5: the the procedures. I had the strategies and he helped draft.
• 6:11
  Speaker 2: The whole So okay that you said the FDD. What
• 6:15
  Speaker 2: does that stand for?
• 6:15
  Speaker 5: A federal disclosure document?
• 6:18
  Speaker 2: And that's what you have to do in order to yes,
• 6:20
  Speaker 2: to have.
• 6:21
  Speaker 4: To open up a franchise, you have to do the
• 6:23
  Speaker 4: first thing I do is an fd D, right disclosure document.
• 6:26
  Speaker 5: Yes, and you do that.
• 6:28
  Speaker 4: You do that with the United States government. Yes, And
• 6:31
  Speaker 4: each state has its own.
• 6:34
  Speaker 5: The same FDD. But each state has its own laws
• 6:39
  Speaker 5: as far as submission. So like New York, you have
• 6:43
  Speaker 5: to submit your FDD. It has to be approved by
• 6:46
  Speaker 5: the state each year before you can sell a franchise
• 6:49
  Speaker 5: New Jersey. I can just give you my fd D
• 6:52
  Speaker 5: and have you sign up on the spot. New York
• 6:55
  Speaker 5: they have to approve it each year.
• 6:57
  Speaker 4: New York's always the worst and everything.
• 7:01
  Speaker 5: Seems so all right.
• 7:03
  Speaker 4: So what's in the FDD.
• 7:05
  Speaker 5: So within the FDD, it's basically like the role book
• 7:08
  Speaker 5: for the franchise, like, this is what we're gonna do
• 7:10
  Speaker 5: for you. This is your role as a franchisee. This
• 7:13
  Speaker 5: is my role. It basically puts on the table every
• 7:17
  Speaker 5: cost that you could incur with a business like this,
• 7:21
  Speaker 5: It discloses to the franchise e everything they would have
• 7:24
  Speaker 5: to deal with if they decided to join your organization,
• 7:27
  Speaker 5: every possible element of everything.
• 7:30
  Speaker 4: How long? Like how how long is it?
• 7:32
  Speaker 5: So mine is about three hundred pages?
• 7:35
  Speaker 4: Three hundred pages, yes, and that's what he helped you
• 7:37
  Speaker 4: write that?
• 7:38
  Speaker 5: Yes, so he has a team of people that helped
• 7:40
  Speaker 5: put it all together.
• 7:41
  Speaker 4: So how do you all right? So is it like
• 7:43
  Speaker 4: a set template to say like or like, how do
• 7:46
  Speaker 4: you come up with three hundred pages of items?
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  Speaker 6: Or was you using that that when you find yourself
• 7:51
  Speaker 6: you had so much writing already built up, like.
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  Speaker 5: I did so within the FDD, so we do three
• 7:58
  Speaker 5: weeks of training for each of the franchisees. So lists
• 8:02
  Speaker 5: how much time is spent on this topic in training,
• 8:06
  Speaker 5: like it spells out the whole training by minutes, thirty
• 8:09
  Speaker 5: minutes on this, thirty minutes on that. It shows you
• 8:12
  Speaker 5: the least possible amount of money you could use to
• 8:15
  Speaker 5: open in the highest so there's a range. It spells
• 8:20
  Speaker 5: out liability of the franchise or like what are we
• 8:24
  Speaker 5: liable for? What are we not liable for? So once
• 8:28
  Speaker 5: the franchise reads it, they understand what they're getting themselves into,
• 8:33
  Speaker 5: and once they sign it, you can't say I didn't
• 8:35
  Speaker 5: tell you you know this is going to happen.
• 8:38
  Speaker 4: So that the FDD actually is the instruction manual. Yes, yeah,
• 8:43
  Speaker 4: you don't have like another one on top of that.
• 8:45
  Speaker 1: We do.
• 8:46
  Speaker 4: So what's the other one? You have to time, So
• 8:49
  Speaker 4: there's a reason that. Now we know why you're the
• 8:51
  Speaker 4: youngest one. So what's what's all? Right? So we got
• 8:56
  Speaker 4: the FDD. That's pretty watch the whole instruction manual. So
• 8:58
  Speaker 4: what's on top of that?
• 8:59
  Speaker 5: So the right So legally it allows you to sell
• 9:03
  Speaker 5: a business to someone. Right, So that's the FDD. Then
• 9:06
  Speaker 5: there's an operations manual. So that's where all my strategies, concepts,
• 9:13
  Speaker 5: all of my material as far as like how to
• 9:16
  Speaker 5: find staff, it's in the operations manual. So the operations
• 9:20
  Speaker 5: Manual is what teaches them what to do. So that's
• 9:24
  Speaker 5: a whole nother document which came hand in hand with
• 9:27
  Speaker 5: the FDD.
• 9:28
  Speaker 3: And once they signed that document the FDD, they can't
• 9:31
  Speaker 3: deviate from that operational agreement.
• 9:33
  Speaker 4: No, So how many pages is the operation it's about
• 9:38
  Speaker 4: two hundred, so it's five together. Yes, it's like loaded
• 9:43
  Speaker 4: the rings so okay, so how long how long did
• 9:47
  Speaker 4: it take you to put together all of that?
• 9:49
  Speaker 5: So, I mean they were prepared to put it together
• 9:54
  Speaker 5: within a month, but I needed more time, so it
• 9:58
  Speaker 5: took me about four months.
• 10:00
  Speaker 4: So you did you actually write it yourself or you
• 10:02
  Speaker 4: just dictated it to them?
• 10:03
  Speaker 5: Dictated it to them?
• 10:04
  Speaker 4: So what you ever suggested, Mike can do it them.
• 10:07
  Speaker 5: There's some things you don't want to do yourself. One
• 10:10
  Speaker 5: of those things is messed.
• 10:11
  Speaker 4: With the law. So you really get a professional, get a.
• 10:15
  Speaker 5: Professional and do your research because a lot of people
• 10:18
  Speaker 5: rip people off just to create that document. So you
• 10:22
  Speaker 5: have to do your research so you know what you're
• 10:23
  Speaker 5: getting into.
• 10:24
  Speaker 4: All right. So now okay, so you have the FDD done, yes,
• 10:28
  Speaker 4: and then you got approved. It's take to get approved.
• 10:31
  Speaker 5: So like once it was done, I could sell in
• 10:34
  Speaker 5: many states. Like once it's done here, you go, Kiko, Okay,
• 10:37
  Speaker 5: you want to open in.
• 10:37
  Speaker 4: New Jersey, Great, but they have to approve it.
• 10:40
  Speaker 5: No, unless you go to a state like New York California.
• 10:44
  Speaker 2: So you were in Montclair, Yeah, so if New Jersey.
• 10:49
  Speaker 5: Jersey imagery fortunately, right, So like to put one in
• 10:52
  Speaker 5: Brooklyn out yes?
• 10:54
  Speaker 2: Different?
• 10:54
  Speaker 4: Right?
• 10:55
  Speaker 5: Requires the state to approve it.
• 10:56
  Speaker 4: All right, Okay, so you have the you have thed,
• 11:00
  Speaker 4: then you have the operational green. So nowI you're up
• 11:02
  Speaker 4: and running as far as you can. Now you can
• 11:05
  Speaker 4: have people buy your franchise. Right, Well, that's only have
• 11:08
  Speaker 4: to battle because people have to actually buy your franchise. Yeah,
• 11:11
  Speaker 4: so what's the process for that? How did how did
• 11:14
  Speaker 4: you get the word out? How did you get people
• 11:16
  Speaker 4: interested in buying?
• 11:17
  Speaker 2: Like?
• 11:18
  Speaker 4: How did that? How was the first the first person
• 11:20
  Speaker 4: that brought a franchise? How did that?
• 11:21
  Speaker 2: So?
• 11:22
  Speaker 5: I had so I owned a studio in Westfield, Montclair,
• 11:25
  Speaker 5: in Westfield. So in Westfield, I had a manager that
• 11:29
  Speaker 5: was so amazing. She was she was doing better than
• 11:33
  Speaker 5: I could have. And when I when you see talent
• 11:36
  Speaker 5: like that on your staff, you have to do something
• 11:38
  Speaker 5: about it or else they'll leave, they'll find another job.
• 11:41
  Speaker 5: So I knew this position like she outgrew the position.
• 11:44
  Speaker 5: So I talked to the company. I spoke to you
• 11:47
  Speaker 5: guys about and I was like, how do I open
• 11:50
  Speaker 5: up the first one? How do I find people? And
• 11:54
  Speaker 5: they talked about a pizzeria that sold their first one
• 11:56
  Speaker 5: to their manager. They let their manager in. It was
• 12:00
  Speaker 5: already up and running, it would be great to start
• 12:02
  Speaker 5: with someone who knows the system. So I proposed that
• 12:06
  Speaker 5: offer to her and her husband, and she took it.
• 12:09
  Speaker 5: So actually she became the first franchisee.
• 12:13
  Speaker 6: We have a slight franchise e story, Like twelve years ago,
• 12:17
  Speaker 6: we tried to get into a franchise Coladstone, I said
• 12:21
  Speaker 6: in an earlier episode, but it was like, yo, we
• 12:23
  Speaker 6: needed five hundred thousand, and we're like in our twenties,
• 12:27
  Speaker 6: how are we going to do this? But you've created
• 12:29
  Speaker 6: a different that's for people who wanted to get into
• 12:31
  Speaker 6: the franchise e.
• 12:33
  Speaker 5: Phsician you want about it, I'm not gonna talk about it.
• 12:38
  Speaker 4: Interesting because, like you said, a lot of friends like
• 12:39
  Speaker 4: McDonald's I think is the most.
• 12:40
  Speaker 2: Expensive a million dollars.
• 12:42
  Speaker 4: I think. Now it's like see what I did, shout
• 12:48
  Speaker 4: out the homemade right all right? So yeah, because it's
• 12:52
  Speaker 4: like a lot of these friends.
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• 15:43
  Speaker 4: My shot is like a million dollars a million and
• 15:44
  Speaker 4: a half, and then you have to some other franchise.
• 15:47
  Speaker 4: You have to buy three locations. But you can't just
• 15:49
  Speaker 4: buy one location. You got to have like a million
• 15:51
  Speaker 4: dollars in investable assets, all kinds of stuff. It's not
• 15:54
  Speaker 4: easy to open a franchise. No, So with your your
• 15:58
  Speaker 4: body is different, right, Yeah, so before we've been talking,
• 16:01
  Speaker 4: you have a you have a sliding scale of the
• 16:04
  Speaker 4: price range, right, Yes, anywhere from thirty to ninety correct,
• 16:07
  Speaker 4: depending on geographic locations.
• 16:09
  Speaker 5: Exactly.
• 16:10
  Speaker 4: So obviously major markets is more, right in the small
• 16:12
  Speaker 4: market is less exactly because the major market is going
• 16:14
  Speaker 4: to do more business.
• 16:15
  Speaker 5: Yeah, and the real estate is more major yep.
• 16:19
  Speaker 4: So all right, So but you also have an income
• 16:22
  Speaker 4: is it income based?
• 16:24
  Speaker 5: Income based financing?
• 16:26
  Speaker 4: Can we like to?
• 16:27
  Speaker 5: So can you explain that so that I'm coining? Someone
• 16:31
  Speaker 5: write it down that after this. So basically, like I
• 16:37
  Speaker 5: started with five hundred dollars, I had no networth, right,
• 16:41
  Speaker 5: so if if someone offered me something, they wouldn't and
• 16:45
  Speaker 5: it would prevent me from having the opportunity of what
• 16:48
  Speaker 5: I've done so far, So I kind of had that
• 16:51
  Speaker 5: in my head, like, just because you have a million
• 16:53
  Speaker 5: dollars in assets doesn't mean you're a good business owner.
• 16:56
  Speaker 5: It really takes personality. This is a service business, so
• 17:00
  Speaker 5: you have to have a personality, you have to be
• 17:03
  Speaker 5: able to be likable. So there's a lot of different
• 17:06
  Speaker 5: things that would make you a good franchise besides assets.
• 17:10
  Speaker 5: So but assets over yeah, so you can't have too
• 17:15
  Speaker 5: many liabilities to get in. But so basically it goes
• 17:19
  Speaker 5: by person by person what but we look for, number one,
• 17:24
  Speaker 5: people who are good with people, People who show a
• 17:29
  Speaker 5: healthy relationship with money. So even if you're making I
• 17:32
  Speaker 5: don't know what, two thousand dollars a month, I'm exaggerating,
• 17:36
  Speaker 5: but you're still saving for retirement five dollars a month.
• 17:39
  Speaker 5: That shows that you're you're you handle money well. And
• 17:42
  Speaker 5: that's the biggest thing that we look for, people who
• 17:45
  Speaker 5: handle money well, because if it's five dollars versus a
• 17:48
  Speaker 5: million dollars, it doesn't matter because you're you're going to
• 17:51
  Speaker 5: handle the business well. So we look at people's income,
• 17:57
  Speaker 5: what they currently do. Are they saying what does their
• 18:00
  Speaker 5: savings look like? How much can they put upfront towards
• 18:04
  Speaker 5: the franchise, what has been their work history, what their
• 18:07
  Speaker 5: passion is. We have a whole kind of checklist that
• 18:11
  Speaker 5: we go over and we process it and then we
• 18:14
  Speaker 5: approve them based on that. So who we So it's
• 18:17
  Speaker 5: myself and I have a team of three other people
• 18:20
  Speaker 5: that help with the franchise company and.
• 18:22
  Speaker 4: Dan, you said, but you guys can assist with financing too, right, yes,
• 18:26
  Speaker 4: so can you talk about that?
• 18:27
  Speaker 5: So the franchise fee is thirty thousand dollars. However, say
• 18:31
  Speaker 5: you have twenty thousand, usually you would never be able
• 18:36
  Speaker 5: to own a franchise because you don't have enough money.
• 18:39
  Speaker 5: So we might finance that other ten for you, depending
• 18:42
  Speaker 5: on the situation over time. So the biggest thing is
• 18:45
  Speaker 5: there's a pull of people who are being left out
• 18:47
  Speaker 5: of this whole franchise concept due to financial reasons. So
• 18:51
  Speaker 5: we're making it easier for people who still have potential
• 18:54
  Speaker 5: to get in.
• 18:56
  Speaker 2: And so right now you have twelve franchises, right, yes,
• 18:59
  Speaker 2: eleven of them.
• 19:00
  Speaker 6: Yes, And you said that there's a certain demographic of
• 19:05
  Speaker 6: franchises that you're looking for.
• 19:07
  Speaker 2: Why millennials? What makes them the target audience here?
• 19:10
  Speaker 5: It's another loaded question why millennials. Well, so millennials have
• 19:16
  Speaker 5: been told by their baby booming parents, get a good job,
• 19:21
  Speaker 5: work there your whole life, save for retirement, and that's it.
• 19:24
  Speaker 5: You're a good person. However, we know that's not the
• 19:28
  Speaker 5: case nowadays most people. Most people. That's why you see,
• 19:34
  Speaker 5: speaking of Mickeyde's right, you see fifty year old, sixty
• 19:38
  Speaker 5: year olds working there because they don't have enough money
• 19:42
  Speaker 5: to live off of their retirement plan did not carry
• 19:44
  Speaker 5: them through. So we have these millennials who are getting
• 19:48
  Speaker 5: frustrated within their jobs. They've reached a glass ceiling and
• 19:53
  Speaker 5: they're looking for opportunities, but nothing is there because they're
• 19:56
  Speaker 5: solely relying on their boss supervisor to give them a raise.
• 20:01
  Speaker 5: So what we've started doing is pitching for them to
• 20:04
  Speaker 5: give themselves a raise through franchising. And it's just a
• 20:09
  Speaker 5: pool of people that are looking for a way out,
• 20:11
  Speaker 5: and we've realized these are the people that we want,
• 20:13
  Speaker 5: and we're going to help guide them and show them how.
• 20:15
  Speaker 2: To do it.
• 20:16
  Speaker 4: One of the good things about franchise is that it
• 20:19
  Speaker 4: allows you to So somebody said, we had a guest
• 20:22
  Speaker 4: and he said, Chris Senegal. He said that in school,
• 20:25
  Speaker 4: they teach you not to cheat, but in business you
• 20:30
  Speaker 4: get rewarded for cheating. Not cheating people, but like cheating
• 20:33
  Speaker 4: as far as you see what somebody else has done
• 20:35
  Speaker 4: and you copy that, right, like I should use that
• 20:38
  Speaker 4: word copy. You get rewarded for copying. Right, You copy
• 20:43
  Speaker 4: somebody's paper in glass and you can keep that at school.
• 20:46
  Speaker 4: You copy a business and you become a millionaire. So
• 20:49
  Speaker 4: that's what it does, is it saves the learning curve.
• 20:53
  Speaker 4: And like you said, I mean percent of businesses failed.
• 20:57
  Speaker 4: So if you already have a successful business your eyes,
• 21:00
  Speaker 4: being successful is a lot higher than just starting out
• 21:03
  Speaker 4: from scratch, right, And as you said, I mean you
• 21:05
  Speaker 4: have five hundred pages of a system that's already in
• 21:09
  Speaker 4: place as opposed to just trying to wing it and
• 21:11
  Speaker 4: start yourself. And it could be very lucrative too, because
• 21:14
  Speaker 4: you were saying, like some of the locations like well
• 21:17
  Speaker 4: over six figures. Yes, so yeah, so those are all
• 21:21
  Speaker 4: the pros I did a commercial for you. So all right,
• 21:28
  Speaker 4: so what's the revenue model? Like as far as how
• 21:30
  Speaker 4: do how do you make money off of the franchise?
• 21:33
  Speaker 5: Right, So we collect the franchise fees upfront or through
• 21:38
  Speaker 5: our income based financing program and then we collect royalties
• 21:43
  Speaker 5: each month six percent royalties off of their gross income.
• 21:47
  Speaker 5: So the benefit of doing a percentage is that if
• 21:49
  Speaker 5: they it encourages us to make sure they're making money,
• 21:53
  Speaker 5: because if they don't make money, our six percent is
• 21:56
  Speaker 5: very small. If they're being very lucrative and successful, our
• 22:02
  Speaker 5: six percent is much larger. So we're constantly coaching them
• 22:06
  Speaker 5: and helping them make more. What I like to tell
• 22:08
  Speaker 5: my franchises is that they'll always make more money than me.
• 22:12
  Speaker 5: So it puts them in the mindset of, oh, you're right,
• 22:16
  Speaker 5: this is my thing. And one thing I wanted to
• 22:18
  Speaker 5: say is we look for people who have currently been
• 22:21
  Speaker 5: working for other companies as employees and putting their all
• 22:25
  Speaker 5: into their job, not but not getting anywhere. So it's
• 22:29
  Speaker 5: a mindset switch. This is the hardest thing to get
• 22:32
  Speaker 5: them to understand. If you work just as hard for yourself,
• 22:36
  Speaker 5: you'll make money.
• 22:37
  Speaker 6: It's like what you said, like their success is your
• 22:40
  Speaker 6: success exactly.
• 22:42
  Speaker 2: I mean, so, how long is the agreement? How long
• 22:44
  Speaker 2: does that last?
• 22:46
  Speaker 5: It lasts for ten years year period?
• 22:48
  Speaker 4: Yes? Okay, okay, so all right, So okay, I want
• 22:52
  Speaker 4: to open a franchise. I meet with you, I get approved.
• 22:55
  Speaker 4: It costs thirty thousand. Let's say I give you thirty thousand,
• 22:58
  Speaker 4: and then I you get some help too though, right,
• 23:02
  Speaker 4: like what's the what after that? You said you provide
• 23:05
  Speaker 4: training and what else do you provide?
• 23:07
  Speaker 5: So that includes three weeks of initial training, ten years
• 23:12
  Speaker 5: of support, and from Monday through Friday, constant support.
• 23:18
  Speaker 4: What is the support like website support.
• 23:20
  Speaker 5: Website support, publicity. We provide graphics for the franchises to use.
• 23:26
  Speaker 5: We provide it like basically every tool you can think
• 23:29
  Speaker 5: of with the SEO for their location.
• 23:32
  Speaker 2: So they're not going to stables like you did.
• 23:34
  Speaker 5: They're not going to staples. They're much more sophisticated than
• 23:38
  Speaker 5: I ever was.
• 23:39
  Speaker 4: Right. And then as your brand grows, obviously to brand recognition.
• 23:42
  Speaker 4: That's the recogniz that's another plus of being a franchise
• 23:45
  Speaker 4: on it. So okay, so now I pay the thirty thousand,
• 23:48
  Speaker 4: I get the shop. I'm making ten thousand a month.
• 23:50
  Speaker 4: I give you six hundred. I keep ninety four hundred.
• 23:53
  Speaker 5: And that's finances, yes, okay, all right?
• 23:59
  Speaker 4: And then for the people that are finance, so the
• 24:00
  Speaker 4: people that don't have all the money upfront that you
• 24:03
  Speaker 4: finance or your company finances, how do they pay you
• 24:06
  Speaker 4: back over there?
• 24:07
  Speaker 5: So we work out an agreement twenty four months, thirty
• 24:10
  Speaker 5: two months, it depends of whatever. The balance is broken
• 24:14
  Speaker 5: up over time, so they would pay that balance and
• 24:17
  Speaker 5: then they would pay the six percent.
• 24:21
  Speaker 4: Of course, got to do that.
• 24:23
  Speaker 5: It depends on the situation. So that was a good
• 24:29
  Speaker 5: question email to find out.
• 24:34
  Speaker 4: One thing. One thing I always wondered about having like
• 24:36
  Speaker 4: a franchise, like even like a McDonald's who has millions
• 24:39
  Speaker 4: of franchises all over the world, how do you know
• 24:41
  Speaker 4: if somebody's like deviating from like you're sending spies in
• 24:46
  Speaker 4: there to like check more people, Like, how do you
• 24:48
  Speaker 4: know you might have?
• 24:50
  Speaker 5: Really we send out secret shoppers. We actually just did
• 24:55
  Speaker 5: that to two studios and they were there was surprise.
• 25:01
  Speaker 5: And also with social media nowadays, you can like we
• 25:04
  Speaker 5: spot stuff sometimes like bro, why are they wearing a
• 25:07
  Speaker 5: pink shirt when they're supposed to wear a black shirt?
• 25:10
  Speaker 5: You know, things like that, But we focus it's like
• 25:14
  Speaker 5: its own little department.
• 25:15
  Speaker 4: We focus on that just making sure that Yeah, so
• 25:18
  Speaker 4: all right, so what's the process is Like, okay, you
• 25:21
  Speaker 4: have like you mess up too many times and you're
• 25:23
  Speaker 4: done yes, that's also in the FDD Okay we strikes
• 25:26
  Speaker 4: you out. Yeah, it's basically three st yeah okay, and
• 25:30
  Speaker 4: then so you strip them up using the name and
• 25:32
  Speaker 4: all that you can. Yes, it's important people to know
• 25:35
  Speaker 4: because it's like, like I said on men, I don't
• 25:38
  Speaker 4: know this stuff. So it's like if you want to
• 25:41
  Speaker 4: start a franchise, it's good information, Like you know, Yeah,
• 25:44
  Speaker 4: you gotta know everything that you need to know before
• 25:47
  Speaker 4: you go into business because you got to expect every
• 25:49
  Speaker 4: possible case scenario what could possibly happen.
• 25:52
  Speaker 5: You have to be the type of person that is
• 25:54
  Speaker 5: okay with running with something that already exists. Right, you
• 25:57
  Speaker 5: can make it your own because there's a lot of
• 26:00
  Speaker 5: log room. You can choose who you hire, you can
• 26:03
  Speaker 5: choose business perks that you would give your clients, but
• 26:08
  Speaker 5: you have to be willing to follow an existing model.
• 26:11
  Speaker 5: So if you're the type of person to take something
• 26:14
  Speaker 5: and just completely rip it apart because you just want
• 26:17
  Speaker 5: to do your own thing, then franchising is not for you.
• 26:20
  Speaker 4: So would you consider a franchise owner as an entrepreneur
• 26:24
  Speaker 4: or a manager?
• 26:27
  Speaker 5: Good question both, because that's essentially what we're doing. What
• 26:33
  Speaker 5: I do manage the locations on a higher level to
• 26:37
  Speaker 5: ensure that they're following our systems. So as far as
• 26:40
  Speaker 5: me as the franchise or I have monthly cause with
• 26:43
  Speaker 5: each studio, I'll fly out a few times per year
• 26:47
  Speaker 5: to like visibly see it.
• 26:50
  Speaker 2: Just so.
• 26:50
  Speaker 5: The biggest thing about my job is making sure it's
• 26:53
  Speaker 5: just like my little studio in Montclair. We're all the same.
• 26:57
  Speaker 5: We're all because we have clients that travel from state
• 27:00
  Speaker 5: to stay and they expect the same experience. And because
• 27:03
  Speaker 5: it's a service business, you know, people are very verbal
• 27:08
  Speaker 5: about if they're dissatisfied. But so far we've been doing
• 27:12
  Speaker 5: a really good job through reviews and things like that
• 27:15
  Speaker 5: on Google. Check it out.
• 27:18
  Speaker 4: My graduates from my school being forced bad. Drop drop
• 27:24
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