If there is one thing Nat and Pete can easily agree on, it's that franchise ownership has huge benefits.
Some of the benefits may seem obvious, but others are less so. Learn their top ten benefits on this episode.
If there is one thing Nat and Pete can easily agree on, it's that franchise ownership has huge benefits.
Some of the benefits may seem obvious, but others are less so. Learn their top ten benefits on this episode.
PEte: [00:00:00] Good morning, Nat.
Nat: Good morning Pate.
PEte: Woo. I'm pumped up today.
Nat: Let's give, give it to me. What do you got?
PEte: Oh boy. Well, this weekend I get to take my daughter who is in college studying business, right. And I'm taking her and all her college friends, boating. This weekend. Oh boy. Yes. Yes. Me and seven college girls are going boating.
Right. And my daughter is very interested in business and we were talking the other day and she said, dad, why do people invest in franchises? Right. And I thought, ah, maybe we should talk a little bit about that today, cuz the way I, I kind of spent some time explaining to, but I thought maybe we talk about 10 interesting things about franchise ownership or [00:01:00] benefits of franchise ownership.
Okay. Sound good? Yeah, let's do it. Alright, so, alright. So what would be one reason or interesting thing about a franchise?
Nat: I think something that most people actually don't even realize till they start doing their research is that there's kind of like something for everybody in franchising. So a lot of times you might think of just like fitness or hair cutting or things like that, but there's a diverse cross section of opportunities.
So, you know, there's almost a franchise in every little niche. So that's one thing that I think people like it franchising just kind of meets you where you're at.
PEte: Yeah, sure it does. I mean, so franchising isn't just fast food. It's not just fast food. Oh, okay. Right. No, and right, we joke. Right. But there's over 4,000 franchise concepts and Yeah, and over 70 industries.
It touches every aspect of our life, as we've talked about before, whether it's food, it could be retail, it could health and fitness, wellness, medi spas, education, anything you can think about, it [00:02:00] touches it. So there are so many. Yeah. Cupcakes, cookies from a standpoint hair cutting. No, I don't need that.
But anyways, so there's many diverse opportunities. Okay. What would be a second thing about franchising that's kind of interesting? I think
Nat: A lot of people are kind of afraid of starting something on their own. So just kind of like, I think with franchising you have a proven business model, so, you know, proven product and service and a proven sales and marketing strategy.
So I think a lot of people really embrace that too. And the benefit
PEte: of a proven model is it minimizes the risk. Right, exactly. If it allows you to make less mistakes or launch your business faster, it saves you capital, saves you time, which improves your chances of success. So that proven business model is so important.
Yeah. Right. What would be a third thing? As we look at
Nat: a franchise, I think part of that proven business model is the training and support. So, you know, back in the old days when I was got my first franchise, you know, we had the three ring binders, the bookcase full of [00:03:00] three ring binders. Yeah. And then we had the, the, the know the bat phone.
Like we could dial the phone number at corporate and talked to somebody that was before Zoom and everything else. Right, right. But the training and support I think is is huge cuz then. Kinda gets you, gets you headed in the right direction. Right.
PEte: Right. And if you didn't have a franchise right, you have to figure out all that on your own.
So they kind of give you the great training and then they're there for you when you got questions or you need support. So, exactly. I, I remember when, when I went through my training and I had the big binder like you did, right. So, yep. And I told, said, I don't wanna, again, can you help me with this? And they'd, they'd explain it to me.
Alright. What would be kind of a fourth interesting thing about franchises? I
Nat: think brand recognition, when you think about like you know, when you start seeing sport Clips or Jimmy John's on NASCARs and things like that. I mean, I think the brand recognition is huge. You're never gonna get that really as a independent, you know, business [00:04:00] owner in, in your small
PEte: town.
Yeah, I was, my daughter and I went out to dinner last night and we were walking by this cookie sh this new cookie shop, right? Yeah. And we looked in there and they had these beautiful displays and these cookies, and there wasn't a single person in there. Oh, wow. Not, not a single. And anytime I've ever went by there and I was talking to my daughter and I said, I don't know how that place is ever gonna make it.
Right? Because I've never heard of the place before. And she goes, well, how is, how is that different than say some of the other things? I said, well, think about crumble. Everybody knows crumble, right? Yep. And you know, you can get that food delivered to you. Those cookies, my son orders them all the time.
Right. And that's brand recognition that, you know, it certainly fuels a business. Right. What would be another example?
Nat: Well, I just, I think along with the brand recognition is all the marketing and advertising assistance, right? So it's like as a franchise owner, you don't really have to worry about making flyers or brochures and signs.
You know, you, you, you order 'em and [00:05:00] then they just magically show up.
PEte: Yeah. Yeah, absolutely. And that's nice because you can, they're doing a lot and then there's efficiencies associated with it. They're good at it. Mm-hmm. Thinking that like the digital marketing, they may assist with your digital marketing.
Ultimately. You probably have to spend the money on your marketing and advertising, but they got the blueprint to do it and in many cases they actually help you do it. Absolutely. Yeah. Alright. What would be a sixth reason or interesting thing about franchise? I was like the,
Nat: the like co-op buying power basically.
So, you know, not only are you not having to like. Figure out the brochures and, and all that. But when you do go to buy the brochures, you're gonna get a good price because you're getting volume discount. Same thing like with the crumble example. You know, I'm sure they get good, good prices on all their ingredients and things like that.
So I mean, sometimes the franchise can almost pay for itself just in the, the volume savings.
PEte: No question about it. And I, I think a little bit about, I was reading about this painting franchise the other day [00:06:00] and they actually, the rebates that they get from the paint manufacturers, they pass a good portion of those onto the franchisees.
That's, that's great. So that gives them below market costs from standpoint of paint. So yeah, absolutely. Access to discounts or suppliers, all that kinda stuff. Alright. What will be another example or a good, interesting thing about franchising? Well, kind
Nat: of going back, just, I was thinking about when I went to corporate for training, the initial training, I remember like you're in there.
I was in there with like a group of, I think eight other owners. I'll kind of start at the same time. So I think just the community that you are joining, so you have other franchise owners that are at the same stage but then also you have like the annual conferences that you go to. And so it gives you opportunity to network.
Talk to other owners and, you know, there's really no new problems under the sun, right? So you can kind of work with other owners and figure out the answers and. Also like [00:07:00] competitive guys like you, I know like the performance group aspects of that. Right? I
PEte: was just gonna say, you read my mind, right?
I, I love the performance group and you can kinda lean on each other, right? Yeah. So if I got a problem, I can call others and say, listen, how did you deal with this standpoint? So there is a community, there is networking, there's support, you know, share best practices, all that kind of stuff. Alright?
What will be another interesting thing about franchising?
Nat: I think just not having to reinvent the wheel. You know, like if you think about like systems and processes even just like having an app that customers can order from. All that kind, all that stuff makes your life a lot easier as a franchise owner.
PEte: Yeah, it could be even customer service. They have a call center, you know, they have inventory management, they have all that kinda stuff. So the systems, the processes are great. I always tell people that when they invest in a franchise, follow the system, right, follow the system. Leverage the processes you're paying.
Yeah, [00:08:00] you can always make it better, but, but at a minimum you follow the system. I mean, it's, you get in trouble if you don't follow the system. I mean, I put a guy into a window washing franchise and he started out and he was terrible. Terrible. The franchisor called him and said, what are you doing? He goes, I know business.
And they said, listen, we know, you know, business. Just follow the system. You'll be successful. Starts following the system. And he ends up being in the top core title of the franchisees. Right. So we, we have a system, we have processes, we follow those. We can make a better, but we follow. Alright. What will be another example of,
Nat: well, I think if you have all, all those key things in place, then I think it, the scalability would be kind of what comes to my mind next because, you know, Once you get it all figured out, why not just start adding more locations?
Yeah,
PEte: yeah. Or territories, right. You can replicate easy and that's what we wanna do. That's how we scale or build a large business. It takes a certain amount of time and scale and if we can leverage that system, right, that is absolutely it. Okay, perfect. And what would be the last one? Well,
Nat: I think once you [00:09:00] scale it up and then when you're, when you're old and you're like kind of decided you wanna do, so you know, retire, you could always have a good exit strategy and you cash out.
So or else leave it for your kids, but you know, it's with franchising, it's, I think the exit strategy is pretty straightforward because people know and like, and trust franchises. Yeah. Well,
PEte: and I think there's a benefit, right? So if you're selling your franchise, if somebody's buying that franchise, they're not, you're not just as the business owner passing off the business to them for a couple weeks, right?
Exactly. When you sell your franchise, they have all the training they go through with the franchisor, all the support, all that kind of stuff. So it's a, it's an easier handoff or an easier transition for somebody to buy the business. So I believe that adds more value to your business if it's an easier transfer for the new person.
Yeah,
Nat: a lot less stress if you're selling. You, you know, if you're buying a, a, a franchise because then you get to plug right into the system. Yeah.
PEte: So there's lots of benefits to having a franchise [00:10:00] or interesting things that, that all come together. So I gotta, I gotta go though, NA, I gotta get ready for this boat excursion tomorrow.
Get your sunscreen out. Yeah, yeah. Well yeah. And wear a hat cuz I'm bald. I know. I got it. So. All right. Thanks so much. Appreciate it. All right.