EYL #37 The Boss

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All right, guys, welcome back to EYL episode thirty seven.

Thirty seven in the books.

Yes, yes, So before we start, we have some very exciting news. You know that we are on tour right now and we go into all of our major markets all over the country. So we started in lahout out to La then we went to Brooklyn and then we went to Atlanta.

That was our most recent stop was Houston.

The craziest of them out to Houston.

Texas for sure. So next up we are headed to the windy city town Chicago going on. Now we coming, We're coming, so yeah, nine twenty six. We are coming very shortly, nine twenty six. So go to our website, go to the events tab and register. It's a free network meet and greet. Once again, the purpose of the network in meet and Greek is not a seminar, it's not a workshop. It is an opportunity for you to build with us, but more importantly, build with each other.

All forms of business come. Yeah.

It's really for you to network with people who live in the same place as you, right, there really is no platform for that. So network and when we leave, you still have those connections.

It's a vibe, it's a whole it's a whole, entire vibe. But okay, so yeah, Chicago, come out. We have a very exciting episode. Something I'm actually exciting about. I'm always excited about episodes, but this is something that I'm actually looking forward to.

Because it's very rare. We get somebody that's the first.

Of something or the biggest as something.

This is this is this is tough.

Yeah, for sure, for sure, sure sure. So we got Kika Wise and she is a legend in her own right because she is the youngest female franchise or in America.

Right, don't let that go over your head.

So if you don't know what a franchise or is a franchise as a franchise owner but not a franchise e. This is what most people think about franchise business. I think about a franchise e. Franchise e is to say, okay, Subways is a chain. I buy a Subway. Now I'm a franchise e Subway, I'm an owner. But off of subway, Subway is the larger company, right, So the flip side of that coin is to be a franchise or pronounce

But we figured why not just get the apple sauce from.

The apple orchard and go straight to the sauce, cut out all the middle man, and you should too. So so yes, so, first and foremost.

Thank you, thank you, thank you for having me.

Yes, so, I'll give a quick rundown. So, yes, Kika has her own studio. It's it's called it's a stretch studio, which is different. We'll talk about. It's not yoga, it's not pilates. It's something completely different. And she started in New Jersey and it became massively successful. So when she was thinking about expanding, she thought about, you know, different ways to expand, and she settled on the idea of

Yes, so thank you again. Basically, I.

Was going to go back to school to get a master's or open up my own business because I had a young son at the time. So I took a poll with friends and family should I go back to school or should I open a business? And everyone said, you'll fail. Don't open a business. Most businesses fail, you know.

Three five.

I've never listened to this, So I.

Was like, great, then that's the direction I'm going in because nobody else they're all afraid to. So I decided to go with that. So I took my last literally five hundred dollars, and I rented a small room and I printed out some brochures and I just ran with the idea of stretching people.

Can we talk about the five hundred dollars?

Sure?

Yeah, because like it wasn't just five hundred, and especially in our community, like we get a tax return and the first thing we think is like, what can we buy? What trip are we going on off this? You got your tax return was the five hundred dollars?

Yes, and you decided I'm start a business, right, this is.

The only chance I have. So yeah, I took it, and I started the business from there, one client at a time. I built my clientele, and it slowly became a business before my eyes. I studied guerrilla marketing for the first year in business. I read several books on how to market with no dollars, creative ways to get clients, and then it started working and I just grew my clientele.

So where did you start? So you had the five hundred dollars? You had the idea for stretching first of all, before we even how did so?

All?

Right, what's your background.

As far as to stretch like people?

How did that? I?

So?

I studied at Montclair State University as a dance major. So I was a professional dancer. I danced in the city television film for years. Being an undergrad, we had to take several anatomy courses that were extremely boring, but I took them anyway had to, And so I took the knowledge that I gained as an undergrad to put towards this concept so it would be a real thing.

So okay, what makes okay? So what is your process as far as stretching.

It's typical stretching, passive stretching.

Right, So, as a dancer, we all know that dancers are the most flexible people. Dancers use gravity to gain flexibility. So essentially I replaced gravity with a stretch coach, which is the coach that you have that gives you the session. So it's based on the dancers approach to stretching the movements, and the coach gently follows the breath pattern of the client to add the stretch. The client's completely limp, they're not holding any muscle groups, so they the endorphins flow

And that's the biggest difference between yoga and pilates, right, that's when muscles are.

Being you're in your muscles are engaged in yoga and pilates, they're disengaged when you come to our studio. Most people never truly relax and let go, not even in bed. Some of my clients tell me they sleep like this balled up, and I'm like, really, can I just applaud you?

Like I studied physical education and health science major to go through anatomy and to go through advanced anatomy and to go through physics and still pursue applaud.

It's a real thing. As far as a lot of times people, especially men, especially if you lift weights and stuff like, you're very unflexible and that could lead to a lot of problems. Like I used to I used to play basketball and I went to prep school and that's the first time I got introduced to yoga. Okay, and it was one of the best things that I ever did. Because so I was in a yoga class and I was like the only male. It's like two males, and it was everybody else was like tennis players. I

Also, it's a whole it's a whole vibe.

Yes, it is all right.

So you have the five hundred and you have the background in dancing and stretching and all that, So what what's the first step that you take for the five hundred, you're in a room out or so.

I went on craigs List. Great when craigs List was you know, a different qriigs List, and I found someone renting a room. It was actually a real estate agent who wanted to share his space. So my rent was three hundred dollars. He paid the other half or two hundred, and I took the rest of the money and I printed out Bruce Sure those brochures.

I passed out in the street.

I used to stand outside this space and just pass out brochures like stretching mont clear.

Right, you have is this?

I read this right, so you know what's coming?

Yes, because we're eighties babies, right, And we grew up with this character, this green character called Gumby. Yes, And I read that you had a Gumby characters standing outside yes with you.

I went on Amazon. I ordered a Gumby costume. Oh no, oh no, I was never the gun Yeah. I had to maintain some far so I hired someone to wear the Gumby costume and pass out brochures while stretching down the street marketing.

So how quick did it grow?

So as far as so when I sold my first package, I made my money back page. No, it was I think it was like six fifty at the time. Yeah, of ten ten sessions. So in the beginning it took about a year to develop a baseline of clientele. At the time, I had a part time job. I was selling furniture, and once I started making more than my paychecks, that's when I completely quit.

So it took about a year for that to happen.

So all right, so at what point do you move out of the room, And at one point you had the studio, right, yes.

So the real estate agent would not renew my lease because he said I was using the space too much. I guess he thought, here's this crazy girl with an idea. I just want somebody to help me pay my rent. But I actually built a business.

Out of it.

No, it was in an office like an office suite, and so I was forced to find another space. The next space was in the basement of a Turkish restaurant, which I thought was dope because it's bigger, like I have my own space. But in the summer you would smell curry and onions coming through the event. That's right, But it was paradise for me. So that's that's actually where I built the business into a six figure business in the basement of a restaurant. So that's when I knew I was onto something.

I mean, this, the health and wellness space is a trillion dollar business. I think they were reporting four point seven billion trillion, not billion.

It's trillion now trillion dollar business.

Did you know that going into it? And we just said I'm just doing something.

You followed your passion past.

It, and so my passion was always people and making people feel good through conversation, you know, just vibes, right, But my passion was never My passion was stretching, but my passion was never business. I never wanted to be an entrepreneur because I didn't want to fail.

I equated failing with entrepreneurship, so I avoided it.

But my son was the reason I got into it, so that I could spend time with him and be there for his work life balance, right, So then I started to fall in love with it.

So all right, so then at what point do you get your own studio?

So after I built the business in the basement of the rest turns restaurant, right, and I saw people were still coming even though it smelled like curry. I knew that I could potentially gain more clientele and cover the costs of a storefront. So I took another leap of faith and I rented the store for how much was your store front rent at.

The time, it was twenty four hundred month.

A little off topic is that courage is something that every everybody uses, like Jamaicans, Indians.

Why are you doing that?

I know I'm getting hungry choice you.

Know, yeah, is an Indian.

It's like a universal spice in West.

Indian and Indian cultures for sure.

Okay, yo, my curry goal, you don't at all.

So those yeah, I don't know which is a member of the family. So he gets to play.

At my house.

I'm a pescatarian and now I want my way to be coming vegan nice, So we putting all the animals down.

But I don't judge.

I don't judge, all right, Okay, so you have the studio and then business starts to just really take off for you at that point, right, yes, And then okay, so when you hit your stride, at what point did you really start to hit your stride where it's like, okay, this is this is something else.

Right, So after a few years I was able to get a New York Times article.

Future story through Google.

One of the reporters found me online and decided to do a story.

You said you had the s c O se O. You mastered that, right? Can you explain?

The SEO stands for Search engine optimization, So you find keywords that you highlight, you pay for so that your results show up fast on Google. So, being that no one was looking for stretching at the time, I had to pay for words like gem yoga, massage, and so when people would look for that, we would pop up and they're like, oh, what's this. So that's kind of how we started to develop a following.

How did you find?

Like how much did that cost?

It was three hundred dollars like a company, a company company, town Square Interactive.

So that so that's really that really works because I've seen that before and people.

I still do it? You still do it? It? Really? I'll never say yeah, same price.

So what's the what what I'm just thinking, like, what's the key, Like, what's the key to find words that it's not because obviously it's like very popular words is like you know, it's probably a million people using that same word, right, is it to find words that aren't really so.

Believe it or not, most small business owners don't use SEO as a tool, So even though you may be looking using the gym, most gyms are not using it.

So it will highlight in your area.

And being that we essentially started the assisted stretching movement, we were able to build our SEO campaign for years before anyone else tried to start using it. So we're like on the top.

Like, oh, you already ahead of the race, right ahead of the race.

But anyone can still benefit from it. You just have to incorporate those words throughout your entire website.

You'll still show up marketing.

Yeah, all right, So you have the studio in business is booming, but then you have a fire, right, yes, all right, the studio burns down and you have to go into the basement of a church.

Yes, but that was a moment for you where you realize, you know what this isn't about me? Right, there was a gentleman that was sitting next to you.

There was a gentleman standing next to me. And as the well, the flames were gone, as the smoke is subsiding He's like, I just bought a ten pack of stretching sash and all he cared about was his investment. But at that because in my head, I was like, oh it burnt down.

I'm done.

I'm just gonna, you know, chill, forget being an entrepreneur. I'm done, you know, move to Hawaii, do something else. And at that moment, I was like, Wow, I have clients and I have employees. I can't just shut down. So at that moment, I knew this was bigger than just me. So it motivated me on a different level. And that's actually when The New York Times reached out to us when we were in the basement of the church. It's funny how life happened.

God's work, all right.

So okay, so you told us off cam about a book that changed your life, and then you fired yourself. The best thing you did was fire yes, yes, all right? What does that mean to fire yourself? And how did that help you see the bigger picture?

So it's called the E myth revisited like the letter E, and it teaches you how to fire yourself from the things that you do not enjoy doing in your business so that you can be the creative force behind it and not lose you know, your light. Essentially, a lot of entrepreneurs get burned out because they try to do everything themselves and they're afraid to delegate because they don't

But it had dual benefits, right because as you fired yourself right and had to hire someone new, you had to write down.

The task procedures.

Exactly, you're the measure. This is what you should be do, this is what you should do right. This is what I did long term.

That helps you out because now when it's time to create your own franchise.

Exactly, it's already there.

But everything you said with me just really resonates. Like you, it's hard. It'll be hard for anybody to understand that if they're not an entrepreneur, but you you don't trust people and not know you don't trust people in a bad way. But it feels like you this is your baby, and it's like you you know what you're doing, and you mastered it, at least you think you mastered it. And it's like you don't really fully feel that somebody

Also, that was a leap of faith for the first month I took a loss and I was hurt, maybe even two months, so you hear the pain, but you have to go through that until you figure it out. And then once I figured out, okay, this is how much I need to make to cover myself so I can have money. And one of the other things I did was I always had myself on payroll. A lot of people start off with not paying themselves and they're

We're not playing that.

That's that's one of my favorite lines, pay yourself on all yourself, right.

And it just works. It's you got to start slow. So if you hire someone for one day a week, like that's good. You just start slow until you trust the process.

All right.

So all right, so we got the backstory, so now we're going to go into what I really me personally. I want to hear is the why and how you built the franchise business and all of the details and in and outs. All right, So now we're going to talk about how you built the business as far as to scale it to the next level, because okay, you have It's one thing to have a successful business, right, but it's another thing to actually open a franchise operation. And

Okay, it's not hard to do. It's hard to figure out if you don't have any guidance.

Like obviously, we've never I've never met anybody that owned their own franchise, so like, yeah, like who was like what was the guidance, Like what was the mental or the moment that you said, this is what I have to do now?

So there, I was really frustrated. One day.

I don't remember what was frustrating me, but I went to Barnes and Nobles and I googled the top five franchise consulting firms and I caused all five to see who would call me back first, because at that point, I was like, I don't want to open multiple locations.

Well can you talk about So I actually asked you that question.

I'm like, what made you say, Okay, instead of opening I want to shop in New Work, I want to shop in Brooklyn, But it's gonna be what made you want to just say I want to do franchises and have other.

People And I left this out.

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.

Why so why did you? Why did you fell you could?

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 feel like that's important, and I didn't want the business to overrun me. So I wanted to allow other

Can you talk about that? I just found that out, So you can't. You can't let somebody else use it unless it's a franchise.

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

Their method. 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, logos and name. So your trademark is the Kika Method, Kika Stretch Studios, the Kika Method. Yeah, so I also franchise, I mean, franchise trademarked most of the trademarks myself. I just sat in front of a computer for hours until I figured it out and so.

So all right, so so so you looked at the consulting firms and what happened at that point.

So the first one that called me back a guy Chris Connor out of Atlanta Franchise Marketing System, and he pitched the whole concept 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 and like not. And so he came. He looked at my studio, he listened to the whole model, and he's like, you could definitely

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

He sets up the whole franchise model, the FDD.

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

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

So that you said, the FDD. What does that stand for again?

Federal disclosure document.

And that's what you have to do in order to Yes, So 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 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. New york'sity is the worst and everything California same.

So all right, So what's in the FDD.

So within the fd D, it's basically like the rule book for the franchise, Like, this is what we're gonna do for you. This is your role as a franchisee. This is my role. It basically puts on the table every cost that you could incur with a business like this. It discloses to the franchise e everything they would have to deal with if they decided to join your organization, every possible element of everything.

How long? Like how long is it?

So?

Mine is about like three hundred pages?

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

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

So how do you all right?

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

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

Like I did.

So within the FDD, so we do three weeks of training for each of the franchisees. So 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, and that.

It shows you the least possible.

Amount of money you could use to open in the highest So there's a range. Uh. It spells out liability of the franchise or like.

What are we liable for? What are we not liable for?

So once the franchise he reads it, they understand what they're getting themselves into. And once they sign it, you can't say I didn't tell you you know this is going to happen.

So that the fd D actually is the instruction manual. Yes, yeah, you don't have like another.

One on top of that.

We do.

So what's the other one? You have time, so there's a reason that now we know why you're the youngest one. What's what's all?

Right?

So we got the fd D. That's pretty much the whole instruction manual. So what's on top of that?

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 other document which came hand in hand with the FDD.

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

Deviate from that. Operational agreement.

No, so how how many pages is the operation?

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

All of that?

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.

Okay, so you were did you actually write it yourself or you just dictated it to them?

Dictated it to them?

So would you ever suggest somebody can do it them?

There's some things you don't want to do yourself. One of those is messed with the law, So you really get 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, all right.

So now okay, so you have the FDD done, yes, and then you got approved. It's how long it takes to get approved?

So like, once it was done, I could sell and earners.

What's up?

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You need many states, Like, once it's done here you go, Kiko, Okay, you want to open in New Jersey?

Great, but like do they have to approve it? No, unless you go to a state like New York, California.

So you were in Montclair right to the first one.

So if in New Jersey, Jersey fortunately, right?

Yeah? Yeah, so like to put one in Brooklyn out yes? Different?

Right requires the state to approve it?

All right, Okay, so you have the you have the FDD, 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, but 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?

Like? How did that? How was the first the first person that brought up franchise? How did that?

So?

I had so I owned a studio in Westfield, Montclair, in Westfield, So in Westfield, I had a manager. That was so amazing was she was doing better than I could have. And when I 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

We have a slight franchise e story, like twelve years ago, we tried to get into a franchise. You said this in an earlier episode, but it was like, you know, we needed five hundred thousand, and we're like in our twenties, how are we going to do this? But you've created a different method for people who wanted to get into the franchise position.

You want to talk.

About it, So, yeah, can you talk about that I'm not gonna talk about it.

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

A million dollars to get I think.

Now it's like, right, see what I did, shout out the homemade all right? 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.

You can't just buy one location.

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

It's not easy to open a franchise. So but your your model is.

Different, right, Yes, so before we've been talking, you have a you have a sliding scale of the price range right anywhere from thirty to ninety correct, depending.

On geographic locations.

Exactly.

So obviously major markets is more, right in the smaller market is less exactly because the major market is.

Going to do more business.

Yeah, and the real estate is more ye.

So all right, So but you also have an income is it? Income based?

Income based financing.

What we like to call So can you explain that.

I'm coining it? Someone write it down?

After So basically, like I started with five hundred dollars, I had no net worth, right, so if if someone offered me something, they wouldn't and it would prevent me from having the opportunity of what I've done so far. So I kind of had that in my head, like, just because you have a million dollars in assets doesn't mean you're a good business owner. It really takes personality. This is a service business, so you have to have a personality.

You have to be able to be likable.

So there's a lot of different things that would make you a good franchisee besides assets.

So but I says over, yeah.

So you can't have too many liabilities to get in. But so basically it goes by person by person what but we look for, number one.

People who are good with people. People who.

Show a healthy relationship with money. So even if you're making I don't know what, two thousand dollars a month, I'm exaggerating, but you're still saving for retirement five dollars a month. That shows that you're you handle money well. And that's the biggest thing that we look for. People who handle money well, because if it's five dollars versus a million dollars, It doesn't matter because you're you're going

Them based on that.

So who's we So it's myself and I have a team of three other people that help with the franchise company and Dan.

You said, but you guys can assist with financing too, right, yes, so can you talk about that?

So the franchise fee is thirty thousand dollars. However, say you have twenty thousand, usually you would never be able to own a franchise because you don't have enough money. So we might finance that other ten for you depending on the situation over time.

So the biggest thing is there's.

A pool of people who are being left out of this whole franchise concept due to financial reasons. So we're making it easier for people who still have potential to get in.

And so right now you have twelve franchises, right, Yes, eleven of them are minority own.

Yes, applause for that.

And you said that there's a certain demographic of franchises that you're looking for.

Why millennials? What makes them the target audience.

For here another loaded question? Why millennials? Well, so, millennials have been told by their baby booming parents, get a good job, work there, your whole life, save for retirement, and that's it. You're a good person. However, we know that's not the case nowadays most people, most people. That's why you see, speaking of Mickeyde's right, you see fifty year old, sixty year olds working there because they don't have enough money to live off of their retirement plan

To do it.

One of the good things about franchise is that it allows you to So somebody said, we had a guest and he said, you saw Chris Senegal. He said that in school, they teach you not to cheat, but in business you get rewarded for cheating. Not cheating people, but like cheating as far as you see what somebody else is done and you copy.

That, right, like I should use that word copy. You get rewarded for copying. Right.

You copy somebody's paper in class and you can keep that at school. You copy a business and you become a millionaire. So that's what it does, is it saves the learning curve. And like you said, I mean, ninety five percent of businesses failed. So if you already have a successful business, your eyes of being successful is a lot higher than just starting out from scratch, right. And as you said, I mean, you have five hundred pages of a system that's already in place as opposed to

Right, So, we collect the franchise fees upfront or through our income based financing program, and then we collect royalties each month, six percent royalties off of their gross income. So the benefit of doing a percentage is that if they it encourages us to make sure they're making money, because if they don't make money, our six percent is very small. If they're being very lucrative and successful, our six percent is much larger. So we're constantly coaching them

It's like what you said, like their success is your success exactly.

I mean, so how long is the agreement? How long does that last?

It lasts for ten years?

Ten year period? Yes, okay?

And then okay, so all right, So okay, I want to open a franchise. I meet with you, I get approved, of course, thirty thousand. Let's say I give you thirty thousand, and then you get some help too, though, right, like what's the what after that? You said you provide training and what else do you provide?

So that includes three weeks of initial training, ten years of support, and from Monday through Friday, constant support.

What is the support like website.

Support, website support, publicity, We provide graphics for the franchises to use. We provide the like basically every tool you can think of with the SEO for their location.

So they're not going to Staples like you did.

They're not going to Staples. They're much more sophisticated than I ever was.

And then as your brand grows, obviously to brand recognition, that's the RECOGNI that's another plus of being a franchise on it. So okay, so now I pay you the thirty thousand. I get the shop. I'm making ten thousand a month, I give you six hundred. I keep ninety four hundred and that's yes, okay, all right. And then for the people that are financed, so the people that don't have all the money upfront that you finance or your company finances, how do they pay you back.

Over the break?

So we work out an agreement twenty four months, thirty two months, pins of whatever the balance is broken up over time, so they would pay that balance and then they would pay the six percent.

Of course, gotta do that.

It depends on the situation, all right.

So that was a good question.

Email to find out one thing.

One thing I always wondered about having like a franchise, like even like a McDonald's who has millions of franchises all over the world, how do you know if somebody's like deviating from like you're sending spies in there to like check more people, Like, how do you know like you might have really.

We send out secret shoppers. We actually just did that to two studios and they were there was surprised. And also with social media nowadays, you can like we spot stuff sometimes like bro, why are they wearing a pink shirt when they're you're supposed to wear a black shirt. You know, they like that, but we focus it's like its own little department.

We focus on that.

Just making sure that Yeah. So all right, So what's the process is like, okay, you have like you mess up too many times and you're done.

Yes, that's also in the FDD.

Okay, restrikes, you're out.

Yeah, it's basically through yeah.

Okay, and then so you strip them up using the name and all.

That you can. Yes, it's a point for people.

To know because it's like like I said, I mean I didn't I don't know this stuff. So it's like if you want to start a franchise, it's good information, like you know, Yeah, you gotta know everything that you need to know before you go into business because you got to expect every possible case scenario what could possibly happen.

You have to be the type of person that is okay with running with something that already exists. Right, you can make it your own because there's a lot of will go room. You can choose who you hire, you can choose business perks that you would give your clients, but you have to be willing to follow an existing mind. So if you're the type of person to take something and just completely rip it apart because you just want to do your own thing, then franchising is not for you.

So would you consider a franchise owner as an entrepreneur or a manager?

Good question, both, because that's essentially what we're doing. What I do manage the locations on a higher level to ensure that they're following our systems. So as far as me as the franchise or I have monthly cause with each studio, I'll fly out a few times per year to like visibly see it. Just so the biggest thing about my job is making sure it's just like my little studio in Montclair.

We're all the same.

We're all because we have clients that travel from state to state and they expect the same experience. And because it's a service business, you know, people are very verbal about if they're dissatisfied. But so far we've been doing a really good job through reviews and things like that on Google check it out.

All right, So in the next seven we're gonna go into scaling and how you're gonna blow this thing out of the water. All right, So now we're gonna go into the next level of business as far as we explain the whole process of how you got started, then we explain how you set up the franchises. Now we're going to talk about how you're growing the franchises, but before we go there, so we kind of briefly talked about it, but we didn't really fully go into it.

So you have a system in place to hire or to work with.

Minority business owners, right, yes, for your franch Is that something that you just do as an eye test or is that like a system that you have in place to kind of like like, what's it the Rooney rule.

In the NFL?

Oh yeah, yeah, they have to with that.

If anybody that's not the NFL, they have to whenever they're hiring a general general manager, right, yeah, they have to they have to pick an African American as one of the candidates.

They don't have to.

Hire them anybody any minority. It could be Hispanic as well.

Okay, a minority as one of the people that they interview. So I say that, they say, do you have something like that in place or is it just something like you're just actively looking for.

Yeah, so it's organically grown like that just starting from Instagram and people like what she's a franchise or doing more research into what I'm doing and they see someone that looks like them. So I think that's what's helped grow grow it so far, it's just been organic.

Because it's because I forgot the exact percentage, but it's a very low percentage of I don't even want to use the term minority. It's I never really liked that word. It's just so broad ranging and it's not really completely accurate. Different conversation for a different day. But yeah, it's for African American, right, it's a very low percentage of African American franchise franchisees owners and especially franchise ors.

It's like me and two other people in.

The whole country, like three people in the country. So it's needed.

It's something that because we need more in every area, but especially in this area as well.

Yes, I think it's a great thing that you're doing, and yeah, kudos to you on that, thank Yeah.

Sure, So all right, so you have twelve you have twelve locations right now, right where theyre located.

So Montclair, Westfield, New Jersey, Morristown, New Jersey, Summit, New Jersey, do you want me to just say, well, okay, I'm like no, it's going to take too long. New Jersey, Florida, Texas, Atlanta, Pennsylvania, and we're working working on Nevada and Maryland.

Okay, So you have twelve right now, so your goal is to have sixty.

Five by win five years five years? So how do you grow from twelve to sixty five?

So far, it's just been word of mouth and just showing happy people like success stories. It's important, Like I'd never like to sell something that I didn't believe in, So I'm really hard on myself my model, and I'm like, do I believe this? Because if I don't, nobody else will. So when I have a franchisee who's successful and they're making money, then they post about it and then other people get encouraged by it. So our strategy has just been word of mouth so far.

So what type of locations are you looking for? A? And then B.

As far as inventory, what is needed to be put into one of your studios? I know you started with a ball on a mat, but I know we've grown since.

Oh what type of what are the things that you need?

So? Yeah, basic operational equipment like phones, computers. We have a retail area that consist of like we sell CBD products. We have branded material. We have these amazing gel socks that no other studio has that you put your foot in and it's like squishy gel that has essential oils and things like that. We also have mats that have measuring systems on it, so we track clients results. So

They said I was two, that's when I discovered that.

And we track it.

So we're giving clients measurable results and that's why they keep coming back. As far as locations storefront, it could be second floor, the thing is, if you don't have street level visibility, you just have to have visibility in other ways, marketing online presence. So we teach them how to market and be successful based on their location.

What's the pricing model?

So it ranges from fifty dollars to ninety dollars first session.

Oh so you don't do monthly memberships.

We do not do monthly membership? Is that the pass gyms?

Why the past?

Why don't you do monthly membership?

So we do.

We work on a package system, so people buy packages of five or ten, so that's what we market pitch.

Why do you why do you why packages as opposed?

That's interesting because every gym that I've been to it has always.

Been monthly memberships, right.

And everybody usually that the idea with the monthly subscription is that people don't really cancel monthly things and it keeps.

It's a way if it's.

An ongoing revenue, whereas you might pay a package, it's like one time, then I might not come back into July. So that's interesting. Do you why do you think that the package is better than the monthly?

So we've actually done the numbers, like with our competition who does memberships, And so once you sell a membership, once the person cancels done, you lost the customer. But if you sell a package, so we sell a package on their first visit, they come nine more times feeling like they're just walking in the door not paying anything. We show them measurable results in between, and then when it's time to re up, we're like, look how far you've gone?

Would you like to purchase another package? Yes? They become addicted to it.

We've done the numbers and we make more than half. We make double what the studios make when they only solicit memberships, because yeah, go ahead, no no, So.

I'm thinking in my head, I'm trying to envision this. So when I coin, I have an individual trainer each session that I go yes, So like if there's how many customers that.

You've seen at a time, and so we have the studios have three to four rooms, so three sessions at a time, maybe it's two on good days, it's four sessions at a time, okay, each hour.

So okay, So psychologically they paid a fifty dollars, it's fifty dollars for how many classes.

One per session?

Okay, so you pay, you pay two ten sessions and you said that they don't feel like they're paying after they paid up front. Psychologically it's less a blow for ten weeks and as opposed to just paying every single month.

And so we've built like I built the system on that years ago. And then when the whole membership phase came, I questioned it. But we did surveys with all of our clients and they're like, nahn't, I would just cancel it at some point. So we have the same clients that we've had for the past eight years.

So all right, but how regular do people come.

In once a week?

Okay?

So it's not a scheduled thing where I can just come once if I do ten sessions, I can come once a month.

Or you can schedule it how you how you want, but we recommend that you come once a week.

In the beginning.

It's only classes.

It's one on one, no class, one on one.

On one, one on one, one instructor one person. Yes, so what's the timeframe that you have for that?

So we do twenty five minute sessions, forty five minute sessions, and sixty minute sessions like.

What all day?

All day?

So who is your obviously you guys are going to grow like you're set to do this.

Who is your direct competition?

Who was coming into the space since you've been doing it this is good? Who is who wasn't in that space before?

Y'all?

Yeah, no one was in the space before me. People thought I was crazy, of course, right, So there's a company that actually flew out and approached me when we had the fire to attempt to buy me out. What happened was a big company. They own a cycling studio, pilates and they were looking for stretching. So it was me or another company, and so met with the guy.

He was like, oh, blowing away. Of course, we signed an NDA non.

Disclosure agreement, but I was I was able to chat with him and get in his mind about what they were looking for as far as like acquiring a company. So basically, the buyout was really low and they would give you they called it an owner's salary or founding member's salary, and that's all you would get. You would not own the franchise company they would So of course I declined and they went with my competitor, so we both started scaling at the same time. And actually that's

So I was like, I have to.

Do you think that the offer was low due to the fact that you're an African woman.

I was gonna say, I hope so because it was so low like that, I can't imagine, but I have no idea. But the fact that I would not own the franchise is what it was like. Hmmm, nah, I can't just receive a check.

So okay, how much was.

It two hundred and fifty a year?

That was a buyout?

Yeah?

Okay, so all right, so this is very interesting before taxes because all right, so.

You're doing one on one, right, I've never I've never heard of a gym that does that before. But does that limit you as far as the grow because how many people can you?

Actually? How mean? Like how many rooms are?

So each location has like three to four rooms?

Okay, so yeah, do you think that? Have you ever thought about opening it up? Because like yoga, right, and when I go to yoga, it's like twenty people forty people sometimes like huge, and obviously the more money and more people more people, but obviously it's better to get one on one.

That's great.

So have you ever thought about expanding and having more people in classes? Like actual classes?

So we, yeah, we tried.

We did the classes and then we would pitch like, oh, try one on one session, and so people from the class would try the one on one and never go back to the class. It was a different experience. So if we have four rooms that are fully booked, it's more, if not the same amount of money.

A huge class would take in.

Because it's.

Higher price Yeah.

All right, well that's important for people to understand because you gotta know your price points. You got to know it's you know, it's different ways to make money, right, It's like it's like clothes. Right, you can make money if your Target and you're selling genes for five dollars, or you can make money if your sex fifth and you're selling five hundred. Exactly, you're gonna sell less pair

We also we let our clients share their packages with friends and family, so the packages run out faster.

Who's the target customers? It like wealthy people hire income probably hire income people.

Right, So we have young athletes whose parents are like a type personalities who want their kids to be the best, the best, the best of the best. So we have eight year olds that come. We have busy professionals, millennials who have great jobs, but their bodies are shutting down, so they come to us.

And we have baby boomers.

So right now, all all the companies are focusing on millennials.

How can we engage millennials? Millennials?

I don't know why people are so obsessed with millennials.

I'm a millennial.

We're not We're cool, But I'm just saying, like, but people have forgotten baby boomers. So we've captured that audience with our business and now they're all, what we sell is youth.

We sell youth, and you have something that's measurable, So that's that's important.

So they like that, right, Well, that's dope.

That's dope. So all right, so what's next?

How can the people contact you if they want to open up a franchise, they want to partner with you?

Added, what's the deal with all your information?

So what's next? So we're working on expanding into other states. We're just trying to have a local Kika stretch and major communities as a center for people to just feel good.

I wish I brought my Matt You're gonna have to come after this.

But just basically helping to improve people's quality of life. So being that everything is about machinery and technology, we've forgotten the importance of human touch and humans. So we're going to constantly provide a human experience no matter what throughout the time of technology. You can contact me on Instagram. Let me say it real slow. So it's Kika I am, so k I k A I am. You can email franchise at Kika stretch Studios dot com for more information.

Thank you, thank you for coming housekeeping.

Yeah yeah, I wanted to give a big shoutut to everybody on Patreon. Y'all know that that's our proud to pay program. We had some new members. Shout out to Patrick Chad, Shout out to the Marcus. He joined in at tier five. Uh so we're gonna be talking to him a few times this mom. Shout out to David and Kimberly and Sheffield out in DC Chef. We let you in on a on a few secrets of things that we got coming up. So shout out to you. So Patreon dot com Backslasharial Leisure. You can join at

Supporting merch and we got some new merch coming out as well. And also on YouTube, make sure you subscribe to our YouTube, iTunes channel and LinkedIn. Also we just got on LinkedIn, so connect with us on LinkedIn, so we are on all social media platforms now, Facebook, Twitter, Instagram, and LinkedIn. And the book. The book tip of this week will be the book that changed your life, The e Myth Revisited and that's the book that you told us where you started firing yourself. So yeah, check it out.

Pease, pease, you.

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