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
Listen on:
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Apple Podcasts
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(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?
Episode Summary
In a riveting episode of Chris Powers’ renowned podcast, the enigmatic Wolf of Franchises, a prominent figure on Twitter known for his deep insights into the franchising world, graced the platform to share his unparalleled expertise. The discourse between Powers and the Wolf unveiled a treasure trove of knowledge, offering listeners a panoramic view into the world of franchising, its intricacies, and its vast potential.
The Wolf’s background is deeply rooted in the franchise industry. He has been affiliated with a company that invests in early-stage franchises, further giving him the leverage of overseeing sales departments that find franchisees for brands in their portfolio. This unique vantage point provided him with comprehensive insights into diverse franchises, setting the stage for the enlightening conversation that ensued.
The episode commenced with a discussion about a rather unconventional concept: a crime scene cleanup franchise. This example was a testament to the vast scope of franchising, demonstrating that the industry isn’t confined to just household names but covers a wide spectrum of services.
Further into the conversation, the importance of maintaining quality in franchising was underscored using the example of “In-N-Out.” Their strategy of measured growth, underpinned by a steadfast commitment to quality, was dissected. The 24-hour supply chain constraint, which ensures the freshness of their food, was highlighted as a significant factor in their expansion strategy.
As the dialogue delved deeper, the topic of lease agreements in franchising emerged. The complex dynamics between franchisors, franchisees, and landlords were explored, emphasizing the significance of location and the balance of power in lease negotiations. The real estate aspects of franchising were further elaborated upon, highlighting the strategic decisions involved in either owning or leasing properties.
The discourse also touched upon the financial facets of franchising. Insights were provided into the world of Small Business Administration (SBA) loans, emphasizing the importance of creditworthiness and financial stability. The conversation then shifted to the adaptability of the franchise model, especially in the face of unprecedented challenges such as the COVID-19 pandemic. Various franchises’ resilience and innovation in adapting to the changing landscape were commendably discussed.
One of the episode’s climactic moments was the exploration of the potential of multi-unit franchising. The Flynn group, the largest multi-unit franchisee in the country, was spotlighted, revealing the monumental scale franchises can achieve.
In conclusion, this episode with the Wolf of Franchises was an indispensable resource for anyone keen on understanding the intricacies of franchising. From the strategic importance of real estate decisions to the vast potential of multi-unit franchising, the podcast was a masterclass in franchising insights. With the Wolf’s expert reflections guiding the way, listeners were undoubtedly equipped with profound knowledge, enabling them to navigate the complex realm of franchising.
The Fort is produced by Johnny Podcasts