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

DESCRIPTION:
James Carey, Director of Franchise Development for Preservan, discusses his views on work-life balance and the concept of work-life integration. Carey shares his experience of struggling with work-life balance during his 30-year career in corporate America, and how he found the concept of work-life integration more appealing and practical. He explains that work-life integration allows him to be a proud dad and a proud franchise and territory developer for Preservan simultaneously, and enables him to be flexible with his time and responsibilities.

Carey shares his approach to work-life integration with prospective franchisees, explaining that it allows them to achieve their goals in both their personal and professional lives. He believes that franchising offers a life-changing opportunity to create new experiences and personal growth.

Before joining Preservan, Carey worked in corporate America for a global automotive company as a traveling trainer. He left his job when his wife fell ill and he needed to be home more. During this time, he realized that he was unhappy in his work and wanted to do something he was proud of. He found an ad on Indeed and met Ty McBride, the founder of Preservan. He spent the first 18 months with Preservan as a territory manager in their corporate location, learning what it was like to be a franchisee. He then learned about the other side of franchising and became the territory developer for Preservan.

Preservan is a home service and home-based franchise that works with wood rot repair. They use a proprietary epoxy and resin system to repair wood decay, which is usually 70 to 90% less than the cost of replacement and three to four times faster. Preservan has 13 locations, with the first franchise kicking off in February or March 2020. They have an item 19 in their FD, and franchisees can expect to be doing around $167,000 a year per technician, with an average job of about $1,800 and a 71% gross profit back to the franchisee after three years.

- With James Carey

TIMESTAMPS (Use ChatGPT on Transcript):

00:00 – Introduction to James Carey and Preservan
00:24 – The Myth of Work-Life Balance
01:12 – Discovering Work-Life Integration
03:22 – Franchising and Personal Growth
05:37 – James Carey’s Journey to Franchising
09:03 – Understanding Preservan’s Franchise Model
17:12 – The Future of Franchising and Work-Life Integration
21:26 – Empowering the Next Generation of Franchisees
28:19 – 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:
Jonathan Lippincott, a franchisee of 7 Brew Coffee, shares his journey from owning a Planet Fitness franchise to his current role. Initially, he pursued a degree in exercise science with plans to apply to the Air Force, inspired by his father, a fighter pilot and later a Delta Airlines pilot. However, he realized he was competing against highly accomplished individuals for Air Force pilot slots. While working at a hospital and managing a fitness center, he connected with a group of men at a church in Conway, Arkansas. They worked out together at a new gym, 10 Fitness. Intrigued by the business model, Lippincott asked the owner numerous questions about the gym’s operations, sparking his interest in franchising. He then contacted Planet Fitness corporate, filled out a form to assess his net worth, and despite knowing little about franchising, signed an agreement with the brand. However, finding a suitable location for his gym proved challenging, taking about 24 months. The head of real estate at Planet Fitness supported him during this time. Finally, he leased a vacant building in Jefferson City, Missouri, once occupied by a national retailer. The credibility and brand recognition of Planet Fitness played a key role in securing the lease. Despite facing challenges and fear, Lippincott was determined to succeed and opened his Planet Fitness gym for presale in November 2013.

With Jonathan Lippincott


TIMESTAMPS (Use ChatGPT on Transcript):
0:00 - Introduction
0:25 -Background: From Air Force Aspirations to Fitness
1:00 - Inspiration from Father’s Career
1:45 - Challenges and Realization in Air Force
2:30 - Discovery of Planet Fitness and Fitness Career
3:15 - Curiosity about 10 Fitness Business Model
4:00 - Life-Changing Encounter with 10 Fitness Owner
5:00 - Realizing Potential of Fitness Business
5:30 - Introduction to Franchising
6:00 - Reaching Out to Planet Fitness Corporate
7:00 - Discovering the Franchise System
8:00 - The Process of Signing the Franchise Agreement
9:00 - Facing Challenges and Failures
10:00 - The Struggles of Finding Suitable Locations
11:00 - 24 Months of Struggle and Setbacks
12:00 - The Help and Support from Planet Fitness
13:00 - The Miracle Location in Jefferson City
14:00 - The Power of a Franchise in Securing a Lease



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 hosts another episode of The Franchise Hot Seat with guests Kristi Mailloux and Todd Recknagel, members of the Titus Center Advisory Board. The couple has 30 years of experience in franchising and private equity and have been involved in numerous businesses.

Mailloux shares her journey into franchising, starting with an entry-level role at Molly Maid, a maid service franchise, after graduating from the University of Michigan with a psychology degree. She spent 20 years at Molly Maid, working in multiple roles and eventually becoming the president.

Recknagel, on the other hand, started as a banker and investment banker before co-founding a mezzanine fund. He later bought a group of Blimpie stores and became the largest franchisee.

The couple's company, 320 Capital Group, named after Ephesians 3:20, invests in equity and debt and lends to companies. They prefer businesses with a repeat recurring revenue model and the potential for scaling.

They have impacted at least 15 companies as managers, partners, or investors, including Blimpie, Molly Maid, Mr. Handyman, 800 Dry Clean, Pyro Clean, Ducks, Massage Envy Group, Sola Salons, and Office Pride. They have completed ten investments in the last five years, including two big platform deals in 2022 and 20 transactions within Massage Envy to grow from 28 units to 131.

With Todd Recknagel and Kristi Mailloux

TIMESTAMPS (Use ChatGPT on Transcript):
00:00 - Introduction
01:57 - Kristi's Journey into Franchising
03:25 - Todd's Path to Franchising
05:15 - 320 Capital Group and Private Equity
08:45 - Impact and Success in Franchising
24:41 - Balancing Marriage and Business
37:22 - Faith and Franchising
38:59 - Future Plans



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:
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