DESCRIPTION:
Andrija Čolak, a Croatian entrepreneur and franchisor, is the guest on the Franchise Hot Seat podcast. Known as the new hope of Croatian entrepreneurship, Čolak has been in the franchising business for 15 years. His brand, Surf'n'Fries, which sells French fries, became popular quickly, leading to the decision to franchise the business. Čolak's entrepreneurial journey began when he was 22 years old, after studying marketing in Canada. He started a real estate guide company in Croatia, which was successful and eventually sold in 2008. Despite initial success, Čolak experienced failures and near bankruptcy due to market changes and competition. Surf and Fries started in Rijeka, Croatia, and quickly impacted McDonald's fries sales, leading to a 50% loss. The brand's unique packaging and the concept of walk and eat, repeat led to its popularity. Currently, Surf and Fries has more than 40 locations, with 80% being mobile units. Čolak won the International Franchise Association's next-gen franchisors award in 2015. Despite interest from the US, Čolak explains the challenges of bringing a Croatian based franchise to the US, including heavy regulations and costs. He suggests that international brands looking to enter the US market should first establish directly owned units in the US before franchising.

- With Andrija Čolak


TIMESTAMPS (Use ChatGPT on Transcript):

00:00 - The New Hope of Croatian Entrepreneurship
03:10 - Pioneering Franchising in Croatia
06:20 - From Real Estate to Franchise Success
10:05 - The Birth of Surf’n’Fries
13:40 - An Unexpected Demand for Franchising
17:30 - Entrepreneurial Lessons Learned Along the Way
22:00 - The Rise and Struggles of Surf’n’Fries
25:15 - Unique Packaging: A Marketing Win
28:50 - Going Mobile with the Brand
32:10 - Mobile Units vs. Brick and Mortar
36:00 - International Recognition with Next Gen Franchising
39:20 - Expanding Surf’n’Fries Globally
42:45 - Challenges of Entering the U.S. Market

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

In this video, you will learn:

1. What are the common pitfalls that can derail a franchise's real estate strategy? John Hayes and Jonathan Hill delve into the top issues that franchises face, including the dangers of overselling territories and the importance of tracking sold territories' behavior.

2. How can too many cooks spoil the broth in the decision-making process? Jonathan Hill highlights the confusion that can arise when too many people are involved in decision-making, and how this can negatively impact franchisees.

3. Why is aligning with the market crucial for franchises? Discover the potential problems that can arise when franchises do not align with the markets in which they are selling territories, and the importance of having a contingency plan in place.

4. What is the risk of putting all your eggs in one basket in real estate? Jonathan Hill warns against falling in love with one space, as competition for that space might be fierce.

5. How can franchisees prepare for the real estate selection process? Learn about the importance of being ready to present oneself effectively, and the key documents that franchisees should have at their disposal.

6. How does Morrow Hill assist franchisees in navigating the real estate selection process? Get an inside look at how Morrow Hill helps franchisees present themselves effectively and navigate the real estate selection process successfully.

- With Jonathan Hill

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Get access access to my free DISC assessment to help you improve communication, collaboration, and self-awareness: https://form.jotform.com/221653801409149

Check out the FREE Franchising Skool community: https://www.skool.com/johnhayes/about

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Find me at

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

Where to find Jonathan Hill & Morrow Hill:

Instagram: @morrowhillcre
Facebook: @MorrowHillCRE
Linkdin: https://www.linkedin.com/in/jonathanhillmorrowhill/
https://www.linkedin.com/company/morrow-hill-cre/

#FranchiseRealEstate #CommercialLeaseNegotiations #RealEstateStrategies

DESCRIPTION:

John Hayes, host of the Franchise Hot Seat Podcast, interviews Jeremy Pourbaix from Franchise Flippers. They discuss the challenges and rewards of franchising, with Pourbaix stating that while many people have the desire to own their own business, it is not the right path for everyone. He identifies a lack of education as a key issue in franchising, as many people do not fully understand what it entails. Hayes agrees, noting that he spends a lot of his time educating people about franchising, both at the Titus Center for Franchising at Palm Beach Atlantic University and through an online community.

They discuss the importance of understanding whether you are suited to franchising before buying a franchise, and the potential problems that can arise if you do not. Pourbaix shares his own experience as a franchisee, having bought his first franchise territory at the age of 22 with his father. They grew their business to between five and seven locations over the course of 15 years, before selling for over a million dollars. Pourbaix describes his franchising journey as a success, but not an ""off the charts"" success.

Pourbaix's experience selling his franchises led him to create Franchise Flippers, a platform for buying and selling franchises. He emphasizes the importance of having a supportive franchisor, citing his own positive experience with John Hewitt from Liberty Tax Service. Hewitt will be the keynote speaker at the upcoming Selling Franchises Summit at the Titus Center. Pourbaix concludes by saying that every franchise owner will eventually reach a point where they want to move on, and that it is important to be prepared for this.

-With Jeremy Pourbaix.

TIMESTAMPS:
00:00 - Introduction
02:30 - Is Franchising for Everyone?
05:00 - Challenges in Franchising
07:30 - Educating about Franchising
10:00 - Pressure and Misconceptions
12:30 - Problems with Franchise Purchases
15:00 - Transition to Franchise Flippers
17:30 - Jeremy's Franchise Journey
20:00 - Growth and Development
22:30 - Liberty Tax Service
25:00 - Mentorship from John Hewitt
27:30 - Selling Franchises Summit
30:00 - Importance of Franchisee Support
32:30 - Awareness of Franchise Success Rates
35:00 - Franchisor Involvement
37:30 - Selling Your Franchise Business
40:00 - Financial Outcome
43:00 - Final Thoughts


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:

Pat Rossi, a franchisee of ImageOne and member of the Titus Center Advisory Board, was interviewed on Franchise Hot Seat. Rossi, originally from Montreal, Canada, moved to the United States on an E2 investor visa. He was introduced to the idea of investing in a franchise by broker Daniel Purim at a conference in Orlando. Rossi already owned a commercial cleaning business in Canada and was looking to expand into the United States, particularly Florida. He connected with Daniel Purim from Franchise Wizards who recommended the E2 visa, which allows him to invest in a company and live and work in the United States. Rossi chose to invest in a franchise rather than start his own business due to the lower startup costs, proven business model, and ability to hit the ground running. He invested close to $100,000, which included the franchise purchase, hiring an employee, purchasing materials, and putting money in the bank for cash flow and capital. He chose Florida due to his love for the state from childhood vacations and the pro-business environment. Despite challenges such as establishing a credit score, Rossi found it relatively easy to launch his business in the United States.

- With Pat Rossi.


TIMESTAMPS:

Introduction and Welcome (0:00)
Pat Rossi joins Franchise Hot Seat
Brief introduction of Pat Rossi's background and his connection to the Titus Center Advisory Board
Initial Meeting and Background (1:10)
Mention of the conference in Orlando
Introduction of broker Daniel Purim and his role
Decision to Invest in a Franchise (3:00)
Pat's decision to pursue the American dream
Background on Pat’s commercial cleaning business in Montreal
Why Not Expand in Canada? (5:00)
Pat’s rationale for investing in a franchise rather than starting from scratch in the U.S.
Franchise vs. Starting a Business Independently (8:00)
Comparison of costs and benefits between franchising and starting a new business
Choosing ImageOne (10:30)
Pat’s process in selecting a franchise
Interaction with Daniel Purim and the selection of Image One
E2 Investor Visa Insights (12:30)
Overview of the E2 investor visa and its requirements
The role of legal advisors in the visa process
Investment Details (15:00)
Breakdown of Pat’s investment amount and use of funds
Attraction to Florida (17:00)
Reasons for choosing Florida for business
Pat’s personal connection to the state
Challenges of Starting a Business in a New Country (20:00)
Difficulties encountered when starting a business in the U.S. from Canada
Closing Thoughts and Thanks (22:00)
Final thoughts on the franchise experience and acknowledgments



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

[SHOWNOTES]

TITLE: New Franchise Broker Laws - With Sarah Davies

DESCRIPTION:

Sarah Davies, General Counsel of the International Franchise Association (IFA), discusses the proposed Model Franchise Broker Registration Act by the North American Securities Administrators Association (NASAA) and the California Senate Bill 919. Both pieces of legislation cover the same territory, focusing on registration and disclosure requirements for third-party franchise sellers. The IFA worked with the California legislator to introduce Senate Bill 919 in January, proposing registration and disclosure requirements for third-party franchise sellers. Meanwhile, NASAA has been working on its Model Broker Registration Act for several years.

Davies explains that the term "third-party franchise sellers" encompasses franchise brokers, franchise sales organizations, and franchise consultants. Currently, there are no educational or registration requirements for franchise brokers. The IFA supports education for franchisors and has resources and tools available for this purpose.

The IFA is supportive of increased transparency in the franchise sales process as part of its overall initiative around responsible franchising. Senate Bill 919, which requires franchise brokers to provide disclosure information, has passed the Senate and is currently before the California Assembly. If passed, it will require the governor's signature to become law, with a proposed effective date of January 1, 2026. The disclosure required for franchise brokers is straightforward and basic, including contact information, professional experience for the last five years, litigation history, services performed for clients, a general description of the compensation structure, and franchises sold in the last year.

NASAA, while not a rulemaking body, has issued statements of policy or commentary to clarify disclosure obligations under the franchise rule. These guidelines are then adopted by states, either formally or informally. Franchisors, for the sake of having a single Franchise Disclosure Document (FDD), generally comply with NASAA's commentary. - With Sarah Davies.

TIMESTAMPS:

00:00 Introduction: "Sarah Davies is the General Counsel of the International Franchise Association..."

01:05 Discussion on Senate Bill 919 and NASAA Model Franchise Broker Registration Act.

03:08 Overview of Senate Bill 919 and NASAA's initiatives.

05:18 Definition and role clarification of franchise brokers.

07:10 Requirements to become a franchise broker.

09:00 Lack of current regulations for franchise brokers.

10:20 Support for increased transparency in franchise sales.

12:15 Status of Senate Bill 919 in California.

14:30 Effective date and preparation time for Senate Bill 919.

15:55 Extensiveness of disclosure requirements for franchise brokers.

17:40 Submission process and potential fees for registration.

19:05 Responsibilities of franchisors under Senate Bill 919.

20:20 Role and function of NASAA in franchise regulation.

22:00 Relationship between NASAA and the FTC.

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

Where to find Sarah Davies:

DESCRIPTION:

Alicia Miller, founder and managing director of Emergent Growth Advisors, discusses her book, Big Money in Franchising, and the role of private equity in the franchising industry. She highlights the success story of Tropical Smoothie, which grew from 315 to 1400 units through private equity partnerships. She also discusses the Dwyer Group, a home services giant, which transitioned from being publicly traded to partnering with private equity.

Miller points out that 700 franchise brands have partnered with private equity companies, with at least 2 trillion dollars available for investment in franchising. She explains that private equity in franchising began in the 1990s, with significant growth after the 2009 financial crisis. She emphasizes that successful private equity partnerships in franchising focus on franchisee satisfaction and investment.

There are 5,000 registered private equity firms in the United States, with 1,400 having invested in franchising. These firms often specialize in certain sectors or stages of brand development. Miller advises emerging brands to be prepared before engaging with private equity firms and to consider the implications of losing decision-making authority. She reassures franchisees that initial private equity transactions usually align with their growth goals.

-With Alicia Miller

TIMESTAMPS:

00:00 - Introduction of Alicia Miller and her background in franchising and private equity.

01:15 - Example of Tropical Smoothie's success with private equity, including recent transactions.

02:00 - Discussion on the Dwyer Group and its transition due to private equity involvement.

03:00 - Acceleration of private equity interest in franchising post-financial crisis starting around 2009.

04:30 - Challenges faced by publicly owned franchise companies with shareholder interests.

06:00 - Overview of the number of private equity firms and family offices in the United States.

08:00 - Potential conflicts between franchise operations and private equity decisions.

09:15 - Specialization of private equity firms in franchising and specific investment criteria.

10:30 - Exploration of how private equity firms actively seek out emerging franchise brands.

12:00 - Dynamics between franchisors and private equity firms in brand acquisition and growth strategies.

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, host of the Franchise Hot Seat, interviews James Butler, a serial entrepreneur, author, and franchise sales coach. Butler shares his experience of owning three bridal shop franchises and five different businesses, and his decision against franchising his concept after consulting with a franchise attorney. He discusses his consulting work for franchise owners and his belief that not all businesses are suitable for franchising, emphasizing the need for differentiation in a saturated market. He also mentions the trend of consolidation in the industry, with companies like Authority Brands and Five Star Franchising acquiring different brands under a parent brand.

Butler and Hayes discuss the challenges of franchising a small gym, with Butler suggesting that success in this area requires effective marketing and community building. He warns against franchising businesses that cannot provide adequate support to franchisees or have not developed a solid business model. He cites statistics from the International Franchise Association showing that two-thirds of franchise brands in America never reach 100 outlets, questioning the financial viability of franchising for these businesses.

Butler and Hayes discuss the reasons why people are drawn to franchising, despite the challenges. Butler suggests that many franchisors do not fully understand the industry or their business, and make mistakes as a result. They also discuss the importance of marketing in franchising, and the difficulties faced by small start-ups in competing with larger, more established brands.

Butler's book, Franchise Growth Strategies, is mentioned, specifically his concept of an "idea day" for making big breakthroughs in business. He explains that this involves scheduling time to reflect on the business and its trajectory, and to develop a list of activities to work on going forward. He emphasizes the importance of regular reflection and strategic planning for growing franchisors.

Butler warns against the "activity versus accomplishment trap", stressing the importance of focusing on activities that contribute to long-term goals. He suggests having three to six priorities per day, and maintaining a master list of tasks from the last "idea day". He also discusses strategies for avoiding distractions and staying focused on priorities.

- With James Butler

TIMESTAMPS (Use ChatGPT on Transcript):

00:00 - Introduction by John Hayes

00:11 - James Butler's introduction

00:39 - Discussion about owning bridal shop franchises.

01:06 - Decision against franchising their own concept.

01:27 - James Butler discusses his experience with multiple businesses and consulting.

02:08 - Question about the saturation of franchising.

03:06 - Discussion on industry consolidation.

03:42 - Mention of meeting a former franchisee over lunch.

04:09 - Conversation about small gym franchises.

05:11 - Further discussion on small fitness franchises and marketing challenges.

06:03 - Reflection on the struggles of emerging franchise brands.

06:44 - Question about the appeal of franchising.

07:23 - John Hayes reflects on the caution needed in franchising decisions.

08:01 - Discussion on "idea days" and strategies for business breakthroughs.

08:57 - Importance of planning and reflection in business.

09:29 - Reflection on daily routines and accomplishing goals.

10:06 - Conversation on prioritization and avoiding the activity vs. accomplishment trap.

10:52 - Managing distractions to stay focused.

LINKS:

WEBSITE: http://franchisehotseats.com/

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

Twitter: https://twitter.com/drjohnhayes

YouTub

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