Good morning, NA.
Good morning, Pete.
Woo. I'm pumped up today.
I'm so surprised.
You're surprised, right? Yeah. So I'm pumped up. I did a webinar. Yesterday, talking a little bit about this idea of having a franchise on the side, like a side gig. So protect yourself with your, your career in case you do get laid off with all these layoffs, AI taking over the world, right?
You need to kind of have some stuff, other stuff going for income building wealth. All that, right? Yeah. So I, I do a webinar on this and I, and one of the questions I always get is I work with primarily senior level executives. So the senior level executives say, listen, how do I replace my corporate level income with a franchise?
Right. How, how, how can I do that? And I always tell 'em it takes a certain amount of time and scale to get to where they want to go financially with a franchise. Right? So you can't replace your corporate income of $300,000 in, you know, three weeks, right? Right. It takes time. You gotta scale, both, you know, locations or.
Geographically vans, if it's service, but you, you have to scale and it, it does take time to do that. So what I thought we would do is, I think one of the benefits of franchising is that you can do multiple units or multiple territories so that you can scale to achieve replacing that corporate level income over time.
So maybe we talk today about the benefits of multi franchise ownership. Excellent.
Yeah. So the answer to the question is open more locations.
Alright, well that's good that that's a wrap. No, but I think as we, as we talk about it, one of the advantages to doing multi-unit, ownership of having multiple territories or multiple locations is you have increased revenue and profit potential.
You're just, you're scaling from that standpoint. So when you are looking at a franchise, you need to explore kinda what you want or what you need to do financially, and then you gotta figure out how much scale it's gonna take you to get there. So if I want to, you know, generate $450,000 worth of income, I wanna replace that, well then maybe I need to do three locations each doing 150,000.
But the idea is that you, you can have multiple different revenue streams from, the, each of the units or locations. Do you
find that, for guys it's easier to open up multiple locations of the same? Brand or to open up like, a second or third like franchise, like a completely different franchise, but in the same geography.
Yeah, so I think at scaling, do you scale within your current brand or do you diversify and have others, other different brands? Right. And so the, I believe it's easier to scale within the same model because you're not trying to create brands or brand recognition for multiple different businesses from a standpoint.
And I think that leads to our, kind of our second reason why multi-unit ownership is good, is that you can streamline your operations and efficiencies. So you can basically maybe have one manager that's managing all three locations opposed to having, different managers running different types of businesses.
So I think it's easier from that standpoint to be able to get some efficiencies.
Yeah, I tend to agree. I think that if you're just, if I'm thinking, working back upstream, I guess the number one most important thing is to get enough dirt, basically, enough territory so that you can scale that up, right?
You have to plan ahead a little bit.
Right. If you're converting a marketing program, for example, right? It's easier to have the create it and then it can be rolled out to three, three locations. So you can kinda leverage that so you're getting some efficiency opposed to, again, if you'd mentioned having three different types of businesses, then you have to have three different types of marketing programs.
So you can really centralize, and you see this with like dealership groups? Mm-hmm. Like we're dealerships, they'll have multiple, they'll have Ford, Chevy. You know, Lexus, whatever it may be, Toyota. So the idea is you can get some efficiencies by having a, a parent, parent company or one big, group or multi units or territories, for sure.
Well,
I think having several locations also kind of helps with diversification and risk management. You know, if you just have one location, you know, you kind of have all your eggs in one basket, right?
Yeah, absolutely. So maybe your first location does really well, your second location, it doesn't do as well for whatever reason, right?
You've got yourself covered a little bit and then you open up your third and that one does good. So you just never know. And so if you can diversify by having, multiple locations, that dis, I think reduces your, your risk of a, instead of having a single one having all your eggs in that want location, now you've kind of spread it out a little bit.
Yeah, I know some of the guys that you've worked with have opened up several locations and has anybody come to mind with that?
Yeah, there was a guy that he actually played in, like Kickboxing Boutique Fitness. Yeah. And he opened up one location and it was wildly successful. And then he, he went on to open up the second one and it just didn't take off.
And it, it was probably the area that he picked or the location. Went on to open up his third one was successful. And so, yeah, you see people using this strategy all the time and, and what was really smart about him is that he quickly figured out with the second one that, Hey, this is, it's not working here.
And he cut his losses fast and shut it down. Oh, interesting. Right. So he kind of did that risk management, figured out what wasn't working and stuff like that. I think
it is kind of that. Journey, right? Like when you're, you're investing in a franchise and you're opening up your first location and you're working with, you know, with real estate, just trying to figure out the, geography and everything.
Trying to just navigate, you know, what's, what has the best growth potential and what locations are the best and, and things like that. Which I, I really like, you know, I like that it's a journey and that you're kind of learning, learning, adapting, overcoming, and all that through the
process. Yeah, absolutely.
And I think growth in expansion is, is important, right? As we, as we talk about it. So you may have a plan to open up three and then you get successful and you want to continue to build your business up to become larger. So example is, I just had a franchisee that I'd placed in a franchise concept boutique fitness.
And he, and he came back and he said, look, and I'm, I, I've now been successful. I've opened up all my locations and now I want. To open up another one. So I'm gonna go buy some additional territory. I'm gonna have that expansion. So that's the nice thing about multi-unit is you can just continue to leverage the build up and expand.
Totally.
Yeah. The, what else is, what else is important with multi-unit?
Well, I think the key thing is, is that you can leverage people. And in today's world, I think that's pretty important, is that you can, if you've got a manager, you could have one manager that watches over multiple locations. I think of the lawn suite industry, right?
Where you, maybe you got one manager that looks over three locations, so there's some, real benefits associated with that or, training. Or you can develop somebody at this location and then they can be the manager of the new location you're opening up. So I think there's some efficiencies there.
Yeah, and we just did that podcast on AI the other week and you know, with AI you we're actually able to get the employees that we have to do more to, to a certain extent. So I think that's, it's great to be able to leverage them. Cause I, I think that your management team can do more in this day and age with technology.
Yeah, absolutely. I mean, when you take a look at what AI can do, but, but, you know, and, and I think back a little bit, we talked about in our, our prior podcast, the Business Mastery class that I was with Darren Hardy, and he reminded us that, you know, it's not B2B or B2C or, or retail. Businesses, they're all human to human businesses.
Yeah. Right. And, and at the end of the day, we're in, the human to human business, space. And I think people are your most important resource. Now we can argue, are you gonna need less people in this new world coming? But people are still so important. And if you can leverage that talent amongst multiple locations and multiple territories, that's a significant advantage.
Yeah. I think the, If we're, if, if technology can help us do some things, then maybe we have fewer employees, but it even makes it more important, those employees that we have, that they're a good fit for our business and that they're doing the right, right activities.
Yeah, so bottom line is that if you are looking to replace a corporate level income, now lar create a business with a larger income, you're gonna have to use some form of multi-unit ownership there.
There's multiple territories or mul just that's the way this thing works, and you have to understand there's some great advantages to that. Now, certainly it costs capital to do that, but there are significant benefits to being a multi-unit ownership and franchising.
Yeah, I've seen that time and time again.
And you know, you and I are always excited to talk to guys that are wanting to explore multi-unit franchise ownership.
Yeah. Right. You, you want to, you, you get excited for people that wanna build something, that is significant. So with that, let's call it a wrap. We good? All
right. Have an awesome weekend.
All right. Thanks.
