DESCRIPTION:

Edith Wiseman, the president of FRANdata, discusses the changes in the franchising industry, particularly in relation to SBA loans. She explains that the SBA has changed its standard operating procedure, eliminating the need for lenders to worry about affiliation between the franchisor and franchisee. However, this has led to the SBA no longer determining whether a franchise is eligible for an SBA loan, a task that now falls to the lender. This can be problematic for certain business models, such as passive businesses, which may not be eligible for SBA loans.

Some lenders still consider affiliation a credit issue, despite the SBA's stance, and may refuse to lend to new franchises. To address this, FRANdata has developed a certification of franchise eligibility for SBA lending, which has been signed by nearly 250 franchisors. This certification allows franchisors to self-certify that they abide by all eligibility rules, simplifying the lending process.

Wiseman also discusses the number of active franchise systems, estimating that there are between 3750 to 4000 active franchise brands. She confirms that a new franchise brand appears on the scene every day, but notes that the demand for SBA loans is greatest from brands that are slightly past the emerging stage.

For emerging companies that may face resistance from lenders, Wiseman recommends joining the Franchise Registry and using FRANdata's certification to demonstrate their eligibility for SBA loans. She also advises understanding the landscape of SBA lenders and finding a financing partner that is best suited for their franchise system.

Wiseman concludes by discussing some of the eligibility criteria for SBA loans, such as the franchisor not controlling the money flow of the franchisee. She notes that while this is a credit concern for some lenders, there are ways around this issue, such as the franchisor signing an addendum that allows the lender to take a security interest in the accounts receivables.

- With Edith Wiseman

TIMESTAMPS:

● 00:00: Interview Introduction

● 00:56: Discussion on SBA Regulation Changes

● 04:08: Affiliation Concerns for Lenders

● 07:30: Introduction of Franchise Registry's Certification

● 10:30: Impact on Emerging Franchise Brands

● 12:35: Assistance for Emerging Franchise Companies

● 15:17: Clarification on Affiliation and Credit Issues

● 17:45: Other Eligibility Criteria

● 19:25: Challenges for Franchisors

● 21:00: Example of a Unique Business Financed

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

John Hewitt, an industry veteran with 5,200 franchisees under his belt, discusses his career in franchising. Hewitt founded several companies, including Jackson Hewitt, one of the world's top retail chain franchises with over 10,000 tax offices. He has also founded other franchise companies and currently runs Loyalty Brands, a platform brand with multiple sub-brands. Hewitt has sold companies twice to public entities for seven figures.

Hewitt shares that he always knew he would become a millionaire, but discovered that the journey is more fulfilling than the destination. He enjoys changing lives and plans to continue in the industry indefinitely.

Hewitt's most recent venture, Loyalty Brands, was born out of a conversation with a former employee who suggested he help other franchises grow. Despite being under a non-compete clause from his previous company, Liberty Tax, Hewitt decided to embark on a course to have multiple franchise brands.

Unlike other franchisors who focus on a single industry, Hewitt looks for franchises with integrity, replicability, and stickiness. He believes that many franchisors fail because they prioritize their own success over that of their franchisees. Hewitt's philosophy is that happy, successful franchisees lead to unstoppable growth.

Hewitt's key to franchising is building the best system in the industry and having franchisees who follow that system. Despite having brought in 5,200 franchisees, he shares that not all of them have followed the system.

- With John Hewitt.

TIMESTAMPS:

● 0:00 My guest today is industry legend, John Hewitt.

● 0:47 We've been in franchising about the same number of years, but John is an icon with 5,200 plus and counting franchisees in your career.

● 1:20 John founded several companies, including Jackson Hewitt.

● 1:51 Why such a story?

● 2:23 The journey is the joy.

● 3:15 Loyalty brands, a platform brand.

● 4:10 You have sold twice to public companies for seven figures.

● 5:00 Why not just a tax? Why multiple brands?

● 5:50 The beginning of loyalty brands.

● 7:08 The search for integrity, replicability, and stickiness in franchises.

● 8:00 The challenges of franchising and reaching 100 locations.

● 9:00 The secret to franchising: happy, successful franchisees.

● 10:10 The failure of many franchisors.

● 11:15 The importance of building the best system in the industry.

● 12:20 Personality profiling in franchisees.

● 13:30 Attitude and culture as keys to success.

● 14:20 Identifying bad franchisees.

● 15:30 Blaming others versus taking responsibility.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

The Franchise Hot Seat episode features Nick Gartner, a franchisee and franchise development professional for Hudson Valley Swim. Gartner shares that he was involved with Hudson Valley Swim before it became a franchise, focusing on operations at corporate locations. He transitioned into franchise development when the company decided to franchise. Gartner and his brother opened their own Hudson Valley Swim location in Stamford, Connecticut after about a year of being franchisees.

Hudson Valley Swim is a swim school that caters to all ages and abilities, teaching survival skills, basic swimming, and competitive swimming. Gartner was attracted to the franchise because its mission and core values aligned with his own. He emphasizes the importance of core values in a franchise, citing exceptional customer service as one of Hudson Valley Swim's key values.

Before becoming a franchisee, Gartner worked in franchise development right out of college. He also had experience working at Hudson Valley Swim's corporate locations during summers in college and high school. He did not play a part in the decision to franchise the business, but he has contributed to its growth through franchise development.

Gartner discusses the challenges of becoming a franchisee, highlighting the support provided by the franchisor as a major advantage. He also notes that he always wanted to own a business and chose franchising because it offered a blueprint and ongoing support.

As a member of Generation Z, Gartner shares that 80% of his peers want to own businesses and make a positive impact on their communities. He believes that owning a business allows one to control their schedule and success. Gartner also emphasizes the importance of giving back to the community, stating that his work with Hudson Valley Swim saves lives by teaching an essential skill.

Gartner explains that there are many options for Gen Z individuals to afford a business right out of college, including Small Business Administration (SBA) loans. He was able to secure funding for his business without much difficulty. Gartner concludes by reiterating the importance of community involvement and the benefits it offers.

- With Nick Gartner

TIMESTAMPS (Use ChatGPT on Transcript):

● 00:00: Introduction to the Franchise Hot Seat podcast.

● 00:21: Introduction of Nick Gartner as the guest.

● 00:55: Nick's background and involvement with Hudson Valley Swim.

● 02:45: Nick's decision to open his own franchise location.

● 04:11: Overview of Hudson Valley Swim and Nick's attraction to the franchise.

● 05:47: Importance of core values in franchising.

● 07:40: Nick's understanding of Hudson Valley Swim's core values.

● 09:21: Nick's role before becoming a franchisee.

● 10:37: Decision-making process behind franchising the business.

● 12:41: Challenges faced in becoming a franchisee.

● 14:56: Gen Z's perspective on business ownership and community impact.

● 17:30: Importance of giving back to the community.

● 19:23: Funding options for young entrepreneurs.

● 21:07: Importance of community involvement for Gen Z.

● 23:05: Discussion on stereotypes about Gen Z.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Tw

DESCRIPTION:

Ron Holt, founder of Two Maids & a Mop, shares his experiences with Fred DeLuca, the billionaire franchisee of Subway. DeLuca, known for his curiosity and larger-than-life personality, built the world's largest franchise company from scratch. Holt first met DeLuca at an IFA conference in Las Vegas. At the time, Holt's company was a small cleaning business in Florida with 12 locations. Despite having all the necessary systems and processes in place, they hit a wall and didn't know how to proceed. It was suggested that they should consider franchising, despite Holt's lack of knowledge in the area and the negative things he had heard about it from other franchise owners.

During a break at the conference, DeLuca sat across from Holt and began asking him questions about his business. Holt, initially annoyed, began to engage in the conversation, boasting about his 12 stores. When Holt asked DeLuca about his own business, he was humbled to learn that DeLuca owned Subway with 42,000 global locations. The two continued their conversation for hours, with DeLuca offering invaluable advice about franchising.

After the conference, they continued their discussions via Skype. DeLuca offered to buy Two Maids & a Mop multiple times over the next year, but Holt declined as the offers were not financially appealing. Despite this, Holt appreciated DeLuca's mentorship and the lessons he learned from him. One piece of advice that DeLuca gave Holt was not to always listen to franchise owners, as their suggestions may make their lives easier but could come at a cost to the business. Holt shared this advice at a Two Maids conference, which was met with backlash from the franchisees. Despite the controversy, Holt acknowledges the value of DeLuca's advice and the impact it had on his business.

-With Ron Holt.

TIMESTAMPS:

00:00 - Introduction and background on meeting Fred DeLuca

01:05 - Initial impressions of Fred DeLuca and his interest in the speaker's business 02:15 - Transition into discussing the speaker's background and entry into franchising 03:10 - Decision to explore franchising and attending an IFA conference

04:20 - Meeting Fred DeLuca at the conference and initial interactions

05:30 - Fred DeLuca's involvement and mentorship over the following weeks

06:45 - Offer to buy the business and considerations

07:40 - Fred DeLuca's mentoring style and lessons shared

09:00 - Fred DeLuca's resistance to technological changes and lessons learned

10:20 - Advice from Fred DeLuca regarding franchisee feedback and profitability

11:30 - Reaction to sharing Fred DeLuca's advice with franchisees

13:00 - Conclusion and reflection on Fred DeLuca's teachings

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

Alex Gingold, the guest on the Franchise Hot Seat, discusses his business DonutNV. The rebranding from Cinnamony Donuts to Donut Envy was intentional, aiming to engage customers and prompt them to ask questions about the brand.

The business started in 2014 as a small outdoor mall kiosk at the Philadelphia premium outlets, serving hot mini donuts in two flavors and fresh squeezed lemonade. Gingold and his wife, Amanda, chose the donut business for its flexibility and their love for quick service food. They also wanted to avoid the time commitment of brick and mortar businesses.

The decision to start the business was catalyzed when Amanda lost her job. Gingold kept his job in the insurance industry for another year and a half after launching the business.

The couple launched their first mobile trailer a year after starting the kiosk due to customer requests for their presence at events.

Gingold also shares his experience working at Subway as a teenager and his aspiration to become a Subway franchisee. However, a business professor advised him to build his own system instead, leading him to franchising.

He expresses regret that his small business and entrepreneurship degree program at Penn State did not include franchising education.

- With Alex Gingold

TIMESTAMPS:

00:00 - Introduction to Donut Envy and intentional branding

01:12 - Origins of Cinnamony Donuts and rebranding to Donut Envy

02:30 - Starting as a kiosk at Philadelphia premium outlets

03:50 - Initial menu offerings and concept development

05:10 - Transition from corporate roles to entrepreneurship

06:45 - Finding used donut equipment on Craigslist

08:15 - Decision-making process and overcoming hurdles

10:00 - Official launch of Donut Envy in 2014

11:20 - Balancing entrepreneurship with maintaining a job

12:40 - Expansion into mobile trailer setup

14:00 - Transitioning from job security to entrepreneurship

15:30 - Learning experiences from early Subway employment

17:00 - Considering franchise ownership at a young age

18:20 - Participation in Subway's global student competition

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

John Hayes hosts another episode of the Franchise Hot Seat, featuring Margaret Chebat, a director at PuroClean, a major franchisor. Chebat shares her journey into franchising, which began right after college when she joined PuroClean.

She was attracted to the company's culture and people, despite not knowing much about the restoration industry or franchising. Chebat acknowledges that while franchising has traditionally been a male-dominated field, many women were already involved in various levels of franchising by 2013.

Chebat, who initially started in marketing, transitioned to business development after earning her MBA. In her role, she builds relationships with insurance carriers, commercial partners, and strategic partners to drive additional revenue to PuroClean's network of franchise owners.

Despite facing challenges as a young woman in the industry, Chebat credits her colleagues and co-workers for being advocates for her. She also acknowledges the importance of mentorship, particularly from Natalie Zupo, the director of marketing who hired her.

Chebat advises young people entering the franchising industry to work hard, build relationships, and be authentic. She also encourages them to put themselves in situations that push them towards growth. - With Margaret Chebat.

TIMESTAMPS:

00:00 - 00:30: Introduction by John Hayes

00:30 - 01:22: Introduction of Margaret Chebat and her background

01:22 - 04:19: Margaret talks about how she got into franchising and her experience joining Puriclean

04:19 - 05:50: Discussion on Margaret's knowledge of franchising before joining Puriclean

05:50 - 06:58: John Hayes discusses the presence of women in franchising

06:58 - 08:32: Margaret's transition from marketing to business development

08:32 - 10:45: Margaret talks about the challenges she faced as a young woman in the franchising industry and her mentors at Puriclean

10:45 - 12:16: John Hayes discusses the importance of educating young people about franchising and Margaret shares advice for newcomers

12:16 - 14:09: Margaret provides advice on building relationships in the workplace

14:09 - 15:25: Margaret discusses the importance of identifying opportunities for networking

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

The podcast continues the discussion on responsible franchising, emphasizing the importance of handpicking franchisees with the right skills. They note that while this is a crucial aspect of responsible franchising, it is often overlooked in favor of reducing costs or seizing sales opportunities. They argue that skills are less important than behaviors, as the latter can determine a franchisee's success with a brand. They caution that not everyone is suited for franchising, and it is the responsibility of the franchisor to discern who is likely to succeed. They criticize the common practice of franchisors selling franchises merely to collect a fee, arguing that this is not responsible franchising. Harper and Haller advocate for the use of personality profiles to match prospective franchisees with brands, a tool they claim is underutilized. They argue that this is the first step towards success for a franchisee and without it, responsible franchising cannot exist. They also suggest that personality profiles can help franchisors tailor their training to individual franchisees, as everyone learns differently. They conclude by urging prospective franchisees to insist on this practice and to compare their talents with those of the most successful franchisees. However, they note that a matching profile does not guarantee success, as other factors like money, location, and demographics also play a role. They stress that responsible franchising begins with knowing the complete story about a franchise candidate.

- With Aaron Harper, Matthew Haller.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

The podcast discusses the concept of responsible franchising, focusing on the selection of the right franchisees. The International Franchise Association's recent social media posts have emphasized the collective responsibility of the franchise community to protect the franchise model. However, the concept of responsible franchising, also known as responsible development, has not been widely accepted in the United States, unlike in Europe where organizations like the European Franchise Federation and the British Franchise Association have been promoting it since the 1980s. The podcast host criticizes American franchisors for selling their brand's master licenses for large sums of money, often leading to failure due to lack of readiness for international expansion. This has led to a perception of greed among American franchisors.

The host also discusses the fear of failure that deters people from buying franchises and emphasizes that not all franchisors are equal. Some are more responsible in developing their franchise networks, providing effective training and support, and having experienced people to teach the system to franchisees. However, there are also franchisors who lack the experience or resources to develop successful networks, or who are simply selling franchises for profit, which is not beneficial for the franchisees.

The host advocates for the franchise community to work together for the good of franchising and to embrace responsible franchising. The current interest in responsible franchising is partly due to potential franchise legislation that could potentially harm the franchise industry. The host encourages all communities to protect franchising, starting with the franchisors.

Matthew Haller, president and CEO of IFA, and Aaron Harper, CEO of the Rolling Suds franchise brand, have proposed four core tenets of responsible franchising: setting clear expectations, ensuring capital adequacy, choosing the right franchisees, and promoting sustainable growth. The host agrees with these tenets but expresses concern that franchisors may continue to fall short in choosing the right franchisees, which often leads to issues within franchise networks. The host plans to discuss solutions to this problem in the second part of the podcast.

- With Aaron Harper, Matthew Haller.

TIMESTAMPS

01:15 - Overview of Responsible Franchising

03:30 - Emphasis on Collective Responsibility by International Franchise Association 06:12 - Lack of Acceptance of Responsible Franchising in the United States

08:45 - Contrasting Approaches in Europe with European Franchise Federation and British Franchise Association

11:20 - Critique of American Franchisors Selling Master Licenses

14:50 - Perception of Greed Among American Franchisors

17:30 - Discussion on Fear of Failure and Varying Degrees of Responsibility Among Franchisors

21:05 - Advocacy for Collaboration and Embracing Responsible Franchising

24:30 - Concerns Regarding Potential Franchise Legislation

28:15 - Call for Franchisor Communities to Protect the Industry

31:00 - Introduction of Matthew Haller and Aaron Harper

32:45 - Four Core Tenets of Responsible Franchising

35:20 - Setting Clear Expectations

38:00 - Ensuring Capital Adequacy

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast