John Hayes hosts Keith Miller on the Franchise Hot Seat Podcast. Miller is a representative of the Franchisee Advocacy Consulting Group, advocating for franchisees, not franchisors. He has led several franchisee advocacy groups, including the American Association of Franchisees and Dealers, the Coalition of Franchise Associations, and the North American Association of Subway Franchisees. Miller and his wife, Karen, have been Subway franchisees since 1988.

Miller is respected by peers, adversaries, the International Franchise Association, and franchisors. He advocates for franchisees, which he points out, are the largest investor group in franchising but have the weakest voice. Hayes asks why more regulation is needed to protect franchisees in America, the most heavily regulated country for franchising. Miller argues that franchising is not the most regulated industry in the country. He points out that while the FTC does have a franchise rule, it has only been enforced twice in the last 17 years.

Miller and his wife became franchisees in 1988. They both have computer science degrees and MBAs. They wanted to own their own business and started looking at franchises. They first looked at Togos, a competitor of Subway, but Togos didn't have any available territories. They then looked at Subway, which was affordable. They still own three Subway franchises, which they originally built out.

Miller discusses the controversy surrounding Subway, stating that it is the best and the worst of franchising all rolled into one. He acknowledges that Subway built too many stores and that many people didn't make it, especially those who took on debt. He also discusses the changes Subway made in 2000, which led to a sales growth of 20%. However, he admits that Subway struggled in the mid-2000s and that the 5-footlong promotion, while initially successful, ultimately led to Subway being recognized as the cheap, low-cost carrier, and they could never raise prices.

Miller concludes by discussing the recent changes at Subway. Fred DeLuca passed away in 2015, and the DeLucas and Bucks maintained ownership of Subway until April 30th, 2024, when Rourke Capital bought Subway. New leadership was brought in in 2019 with the sole purpose of getting the brand ready to sell.

- With Keith Miller.


TIMESTAMPS
00:00 Introduction to the Franchise Hot Seat Podcast
01:21 The Need for Franchisee Protection
03:45 Keith Miller's Background and Journey into Franchising
08:42 Challenges and Controversies in Subway Franchising
14:22 Current State of Subway and Franchisee Vulnerabilities
17:32 The Importance of Franchisee Education and Due Diligence
27:16 The Importance of Consulting a Franchise Lawyer
27:37 The Blame Game: Franchisors vs. Franchisees
28:26 Human Nature in Franchising
28:57 Financial Struggles and Ethical Dilemmas
32:41 The Reality of Franchise Costs
34:28 The Controversial California Broker Bill
40:25 The Role of Regulation in Franchising
48:06 FTC's Stance on Franchising
51:31 Final Thoughts and Advice

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' podcast guest is Charles Bonfiglio, the entrepreneur behind Tint World, a South Florida-based business. Bonfiglio shares his journey from being a young entrepreneur who moved to Florida to start a business in the aftermarket accessory world to becoming a successful franchise owner. He faced initial difficulties in securing a lease and a loan due to the lack of an established brand. However, a family member introduced him to the concept of franchising through Meineke Discount Mufflers. Bonfiglio then applied to Meineke, got approved, and opened his first store in Hallandale Beach, Florida. The power of a brand name helped him secure a lease and a loan.

Bonfiglio expanded his Meineke franchises to ten stores from 1983 to 2001. He also became a test center for Meineke, helping them expand their services. He learned how to buy property and build his own buildings for his franchises, which provided him with incremental income. In 2006, Bonfiglio decided to build his own brand. He bought out a company called Tint World, which had six locations at the time.

Bonfiglio hired a company to consult with him on writing the Franchise Disclosure Document (FDD). He then sought advice from Ray Titus of United Franchise Group on how to sell franchises. After getting approved in all states, Titus helped Bonfiglio sell franchises for about a year. Bonfiglio then hired a franchise director, and they have been working together for over 15 years.

Tint World now has about 150 locations in four countries, predominantly in the United States. They also have locations in Canada, Saudi Arabia, and the United Arab Emirates. Bonfiglio shares that he didn't initially plan to become a franchisor, but his experiences with Meineke and his own drive and ability to build a team led him to establish his own brand and become a successful franchisor.

- With Charles Bonfiglio.

TIMESTAMPS:
00:00 Introduction to the Podcast
00:21 Early Entrepreneurial Journey
01:33 Franchising with Meineke
03:56 Transition to Tint World
05:46 Building Tint World Franchise
20:21 Embracing Technology
25:25 Future Plans and Private Equity
27:08 Conclusion and 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:
John Hayes interviews Greg Flynn, the creator of the Flynn Group, which operates seven iconic brands across 44 states and three countries. Flynn discusses his motivation for growing his franchise empire, emphasizing that growth equals opportunity in the Flynn Group. He shares that the company experiences 30 percent annualized growth and employs over 75,000 team members across nearly 3,000 units. Flynn explains his journey into franchising, which started with a background in real estate and a friend's restaurant concept called World Wraps. He also shares how his father's ownership of two Burger Kings influenced his understanding of franchising. Flynn's company operates brands like Applebee's, Taco Bell, Panera, Arby's, Pizza Hut, Wendy's, and Planet Fitness. He explains that the company's growth can be divided into chapters, with the first focusing on Applebee's, the second on diversifying domestically, and the third on expanding internationally and into adjacencies like Planet Fitness. Flynn also reveals that the Flynn Group owns 120 hotels, 114 of which are franchised. He shares his belief that owning multiple franchises is less risky than owning one or two and advises potential franchisees to view it as an operating business. Flynn's goal is for the Flynn Group to be the premier franchise operator in the world, not just in terms of size but also in terms of performance. He emphasizes the importance of selecting premier brands and considering factors like market viability and margins when deciding what franchises to buy or build.

- With Greg Flynn

TIMESTAMPS (Use ChatGPT on Transcript):
00:00 Introduction to Greg Flynn and His Franchise Empire
00:41 The Drive Behind Flynn Group's Growth
02:16 Discovering Franchising: Greg's Journey
03:20 The Role of Burger King in Greg's Career
04:31 Expanding Beyond Restaurants: Planet Fitness and More
13:28 The Secret to Selecting the Right Brand
15:55 Overbuilt Market and Diversification Strategy
16:39 Applebee's Acquisition and Growth
18:17 Franchisee-Franchisor Relationship Dynamics
19:55 Value of Franchise Systems
21:16 Brand Selection and Differentiation
23:02 Operational Challenges and Strategies
25:32 Economies of Scale in Franchising
27:46 Daily Routines and Problem Solving
29:25 Franchising Philosophy and Goals
32:45 Impact of AI on Operations
33:32 Conclusion and 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