The FORT Podcast: Wolf of Franchises (Twitter Anon) – Breakdown of the Franchise Industry
Twitter Anon “The Wolf of Franchises” aka @franchisewolf on Twitter, is an expert in the franchise industry. The Wolf of Franchises is a franchise industry professional who has helped match top franchise brands with competent owners and operators and source emerging franchisors for investment opportunities. The Wolf is currently building a media organization via Workweek; an Austin-based media startup focused on empowering individual creators. Through The Wolf’s newsletter, podcast, and website, he aims to be the most trusted and transparent (as well as entertaining) resource for information on franchises.
On this episode, Chris and Wolf discuss:
- An in-depth analysis of how franchising works
- What makes a great franchise business
- How to create a franchise
- Years of lessons learned from the franchise industry
(1:13) – Building an anonymous Twitter account
(4:19) – How are you building a business around your Twitter account?
(6:27) – What is a franchise?
(9:03)- How does a business owner convert their model to a franchise?
(11:19) – Is there a certain level of stores you need to have before a franchise makes sense?
(12:29) – How long does it take to put the business on paper that’s ready to franchise?
(13:26) – What big questions should franchisees be thinking about as they go through the process?
(16:20) – Are a lot of the people applying to be franchisee’s first-time operators?
(21:05) – How would you structure a franchise deal?
(24:13) – Is it upon the franchisor to determine the size of an operator’s territory?
(25:43) – The Subway Franchise Model
(27:43) -How do Franchisors vet potential franchisees?
(30:46) – Is there any data on the franchisee being a passive owner vs. working in the business?
(33:46)- How do you typically finance a new franchise?
(35:40) – How do you do due diligence on a franchisor?
(38:30) – How long is the typical franchise agreement?
(39:47) – What does the agreement look like when a franchisee approaches a franchisor with a buyer for their locations?
(44:23) – What franchises do you love if you were going to go buy a franchise?
(50:59) – Are there any tips for finding the right location for a customer-facing franchise?
(52:30) -What would you stay away from?
(55:08) – What’s the craziest business you’ve seen become a franchise?
(55:58) – What’s the best healthcare franchise?
(57:53) – Does Real Estate play into someone’s decision to get into franchising?
(59:34) – How does an operator get a franchise into a new state?
(1:02:37) – Why wouldn’t franchises with cult followings like In-N-Out be in every state?
(1:04:16) – Is the nightmare scenario a Franchisee is doing really well but a Franchisor is screwing it up?
(1:08:46) – What’s the best way to buy out a franchisee?
(1:10:34) – Who’s the largest franchisee in the country?
The Fort is produced by Johnny Podcasts