ℹ️ Introduction
In this episode of the Frugalpreneur podcast, host Sarah St. John explores the world of franchising with guest Gregory Mohr, author of the best-selling book, "Real Freedom." Gregory shares his journey into franchising, from his humble beginnings at Taco Bell to becoming a franchise consultant. He delves into the different types of franchises, the financing options available, and the due diligence procedures to consider when selecting a franchise. Listeners are in for a treat as they uncover the wealth of information Gregory provides about the franchising industry and how individuals can make the most informed decisions when considering this path for their entrepreneurial ventures.
💡 Guest bio
Gregory Mohr began his career in franchising in the late seventies, starting out in a Taco Bell restaurant in Woodland, California. Unbeknownst to him, he was actually working for a master franchiser for Taco Bell, and he quickly worked his way up to become a manager and oversaw the growth of multiple restaurants in the Sacramento area. This early experience laid the foundation for his successful career in the franchising industry.
❇️ Key topics and bullets
Primary Topic: Introduction to Franchising
- Gregory Mohr's background and experience in franchising
- Transition from corporate career to franchise consulting
- Overview of franchise industry, types of franchises, and franchising process
Primary Topic: Types of Franchises
- Service industry franchises
- Examples: senior care, tutoring, home services, cleaning businesses
- Options for working from home depending on the type of service
- Brick and mortar retail franchises
- Examples: automotive, fitness, health and wellness, food
- Higher initial investment due to location, build-out, and other costs
- Considerations for location-based businesses and scalability
Primary Topic: Financing a Franchise
- Using retirement funds for franchise investment
- Procedure for using 401k or IRA rollover to finance a franchise
- Associated fees and processes for setting up a C corporation
- Traditional financing options
- Debt financing through SBA loans
- Importance of credit score for obtaining traditional financing
- Role of franchise funding organizations in facilitating investment
Primary Topic: Selecting a Franchise
- Due diligence process
- Assessment of personal skill set and comparison with franchise's requirements
- Understanding the franchise's culture and expectations for franchisees
- Importance of getting to know industry experts, franchise attorneys, and existing franchisees to evaluate the business
- Considering risk factors in selecting a franchise
- Evaluating established franchises with a large number of franchisees
- Assessing potential of emerging franchises with a smaller number of franchisees
- Importance of personal belief in the franchisor and the team's growth potential
Primary Topic: Building Wealth through Franchising
- Pros and cons of franchising
- Recognition that franchising is not suitable for everyone
- Comparison of franchise model with starting an independent business
- Considerations for paying franchise fees and royalties
- Turning an existing business into a franchise
- Factors to consider for franchising an already successful business
- Reproducibility of the business in different locations and industries
Primary Topic: Mistakes to Avoid in Selecting a Franchise
- Identifying franchise fads
- Evaluating available funding options
- Getting to know the industry and seeking expert advice
- Consulting with existing franchisees to understand the business
Primary Topic: Working
