Cliff Notes: THE STEPS TO FRANCHISE YOUR BUSINESS - podcast episode cover

Cliff Notes: THE STEPS TO FRANCHISE YOUR BUSINESS

Feb 26, 2023•15 min
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Episode description

In this Cliff Notes, we discuss the process to franchise a business.


#EarnYourLeisure #FemaleEntrepreneur #businesssystem 



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Transcript

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership.

Speaker 1

I'm Christy nom the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported.

Speaker 2

You will never return.

Speaker 1

But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right. Leave now.

Speaker 1

Under President Trump, America's laws, border and families will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security.

Speaker 4

What made you say okay instead of opening, I want to shop in new work. I want to shop and broken, but it's gonna be What made you want to just say I want to do franchises?

Speaker 5

And have other people and I left this out.

Speaker 6

I did own another location at that point, so I owned two locations and I was working on three. But I was like, I don't I can't handle it on my own.

Speaker 7

Why so why did you? Why did you call you?

Speaker 6

I wanted to maintain some free time for my family, for my leisure, and for work, so I didn't There's a lot of business owners who just run around all day long to multiple locations and then burn out at night. But I always wanted to leave time for myself because I felt like that's important and I didn't want the business to overrun me. So I wanted to allow other people to open. And I realized that in the United States,

you have to franchise. If you allow somebody else to use your logo and your business name.

Speaker 7

Can you talk about that? I just found that out.

Speaker 4

So unless somebody else use it, unless it's a franchise.

Speaker 5

And there's a lot of people who like license their method.

Speaker 6

There's there's stores, but you actually cannot you're not supposed to, and if you get caught, it's a it's a big fine. You have to become a franchise if they are following your trademarks.

Speaker 5

Logos and name.

Speaker 8

So your trademark is the Kika method, Kika.

Speaker 5

Stretch Studios, the Kika method.

Speaker 8

Yeah.

Speaker 6

So I also franchise, I mean franchise trademarks, most of the trademarks myself. I just sat in front of a computer for hours until.

Speaker 5

I figured it out.

Speaker 4

And so so all right, so so so you look at the consulting firms and what happened at that point.

Speaker 6

So the first one that called me back the guy Chris Connor out of Atlanta Franchise Marketing Systems, and he pitched the whole content of working with me, like I think this could work. I'll be on a flight tomorrow and I'm like really, okay, mind you. He was the only one that called me back. The other people called me back like three days later.

Speaker 5

I'm like not. And so he came.

Speaker 6

He looked at my studio, he listened to the whole model, and he's like, you could definitely do this. He helped franchise Massage, Envy and a lot of other big franchises. So and his price was also like lower than all of the other franchise company fifteen thousand, okay, yeah, most of them are twenty and up.

Speaker 7

And what do you get put for that. Like he sets it up.

Speaker 6

He sets up the whole franchise model, the FDD.

Speaker 7

All right, So okay, so he came and then he's the one that set it up for you.

Speaker 6

He's the one that pulled the resources out of me, the procedures. I had the strategies, and he helped draft.

Speaker 8

The whole that you said, the an FDD. What does that stand for again?

Speaker 5

Federal disclosure document And.

Speaker 4

That's what you have to do in order to yes, to have to open up a franchise, you have to do the first thing I do is an FDD, right disclosure document. Yes, and you do that. You do that with the United States government. Yes, and each state has its own it's.

Speaker 6

The same FDD, but each state has its own laws as far as submission. So like New York, you have to submit your FDD. It has to be approved by the state each year before you can sell a franchise. New Jersey, I can just give you my FDD and have you sign up on the spot. New York they have to approve it each year.

Speaker 7

New York's always the words and everything.

Speaker 5

California same.

Speaker 7

It seems so all right, So what's in the FDD?

Speaker 6

So within the FDD, it's basically like the role book for the franchise, like, this is what we're going to do for you. This is your role as a franchisee.

Speaker 5

This is my role.

Speaker 6

It basically puts on the table every cost that you could incur with a business like this. It discloses to the franchisee everything that you would have to deal with if they decided to join your organization, every possible element of everything.

Speaker 7

How long? Like how long is it?

Speaker 8

So?

Speaker 5

Mine is about three hundred pages?

Speaker 7

Three hundred pages, yes, and that's where he helped you write that.

Speaker 5

Yeah, so he has a team of people that helped put it all together.

Speaker 7

So how do you all? Right?

Speaker 4

So is it like a set template to say like or like, how do you come up with three hundred pages of items?

Speaker 9

Or was you using that that when you find yourself you had so much writing already built up?

Speaker 5

I did so.

Speaker 6

Within the FDD, so we do three weeks of training for each of the franchises. So it lists how much time is spent on this topic in training, like it spells out the whole training by minutes, thirty minutes on this, thirty minutes on that. It shows you the least possible amount of money you could use to open in the highest, so there's a range. It spells out liability of the franchise or like what are we liable for?

Speaker 5

What are we not liable for? So once the franchise.

Speaker 8

Erness, what's up.

Speaker 10

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Speaker 8

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Speaker 10

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Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas. Man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership. I'm Christy nom the.

Speaker 1

United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and.

Speaker 2

Deported, you will never return.

Speaker 1

But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right. Leave now.

Speaker 1

Under President in Trump, America's laws, border and families will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security.

Speaker 6

Reads it, they understand what they're getting themselves into, and once they sign it, you can't say I didn't tell you.

Speaker 5

You know this is going to happen.

Speaker 4

So that the FDD actually is the instruction manual. Yes, yeah, you don't have like another one on top of that.

Speaker 8

We do.

Speaker 4

So what's the other one you So there's a reason, So now we know why you're the youngest One's all right, So we got the FDD. That's pretty watch the whole instruction manual. So what's on top of that.

Speaker 6

So the FDD, right is so legally it allows you to sell a business to someone, right, So that's the FDD. Then there's an operations manual, So that's where all my strategies, concepts, all of my material as far as like how to find staff, it's in the operations manual. So the operations Manual is what teaches them what to do. So that's a whole nother document which came hand in hand with the FDD.

Speaker 9

And once they signed that document the FDD, they can't deviate.

Speaker 8

From that operational agreement.

Speaker 7

No, So how how many pages is the operation.

Speaker 4

It's about two hundred, so it's five hundred together. Yes, it's like loaded the rings. So okay, so how long how long did it take you to put together.

Speaker 7

All of that?

Speaker 6

So, I mean they were prepared to put it together within a month, but I needed more time, so it took me about four months.

Speaker 4

Okay, So you did you actually write it yourself or you just dictated.

Speaker 7

It to them?

Speaker 5

Dictated it to them?

Speaker 7

So what you ever suggested, Mike can do it them.

Speaker 6

There's some things you don't want to do yourself. One of those things is messed with the law.

Speaker 5

So you really get a professional.

Speaker 6

Get a professional and do your research because a lot of people rip people off just to create that document. So you have to do your research so you know what you're getting into.

Speaker 7

All right.

Speaker 4

So now, okay, so you have the FDD done, yes, and then you got approved.

Speaker 7

It's he it take to get approved.

Speaker 6

So like, once it was done, I could sell in many states. Like, once it's done here you go kick it. Okay, you want to open in New Jersey.

Speaker 7

Great, but do they have to approve it?

Speaker 5

No, unless you go to a state like New York California.

Speaker 9

So you were in Montclair, right, the first one in New Jersey Jersey imagery fortunately, right, So like to put one in Brooklyn?

Speaker 5

Now yes?

Speaker 8

Different?

Speaker 5

Right requires the state to approve it?

Speaker 7

All right?

Speaker 4

Okay, so you have the you have the fd D, then you have the operational agreement. So now you're up and running as far as you can. Now you can have people buy your franchise. Right, that's only have to battle because people have to actually buy your franchise. Yeah, So what's the process for that? How did how did you get the word out? How did you get people interested in buying?

Speaker 8

Like?

Speaker 7

How did that? How was the first, the first person that brought a franchise. How did that?

Speaker 11

So?

Speaker 6

I had so I owned a studio in Westfield, Montclair, in Westfield, So in Westfield, I had a manager that was so amazing. She was doing better than I could have. And when you see talent like that on your staff, you have to do something about it or else they'll leave, They'll find another job. So I knew this position like. She outgrew the position. So I talked to the company. I spoke to you guys about and I was like, how do I open up the first one?

Speaker 5

How do I find people?

Speaker 6

And they talked about a pizzeria that sold their first one to their manager. They let their manager in, it was already up and running. It would be great to start with someone who knows the system. So I proposed that offer to her and her husband, and she took it. So actually she became the first franchise ee.

Speaker 9

We have a slight franchise e story, like twelve years ago we tried to get into a franchise Clostal I said in an early episode.

Speaker 8

But it was like, Yo, we needed five hundred.

Speaker 9

Thousand, and we're like in our twenties, how are we going to do this, but you've created a different that's for people who wanted to get into the franchise position.

Speaker 7

Yeah, can you talk about that.

Speaker 5

I'm not gonna talk about it.

Speaker 4

That's interesting because, like he said, a lot of France, like McDonald's think is the most expensive.

Speaker 5

A million dollars to get I think now is like right, see what y'all did.

Speaker 8

Shout out the homemade right all right?

Speaker 4

So yeah, because it's like a lot of these franchises like a million dollars, a million and a half, and then you have to some of the franchise you have to buy three locations.

Speaker 7

But you can't just buy one location.

Speaker 4

You got to have like a million dollars in investable assets, all kinds of stuff.

Speaker 7

It's not easy to open a franchise.

Speaker 4

So, but your your moodel is different, right, Yes, so before we've been talking, you have a you have a sliding scale of the price range, right, Yes, anywhere from thirty to ninety correct, depending on geographic locations.

Speaker 11

Exactly.

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J.

Speaker 2

Trump's leadership. I'm Christy Noman, the.

Speaker 1

United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Speaker 2

Do what's right. Leave now.

Speaker 1

Under President Trump, America's laws, border and families will be protected.

Speaker 3

Sponsored by the United States Department of Homeland Security.

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