Digital Social Hour - Franchise Myths BUSTED: Make $1 Million With $68K Investment! | Lance Graulich DSH #588

Starting point is 00:00:00 business owner for the first time. Some people could be a rope that they just, they're crazy. Risk tolerance, no big deal. Just take that rope. Other people need a solid steel engineered bridge to leave their job. They don't want risk. They don't want to worry about anything. Well, there's no guarantees in life. When you get into a franchise, it still has a little bit to do with you and your abilities. Wherever you guys are watching this show, I would truly appreciate it if you follow or subscribe. It helps a lot with the algorithm. It helps us get bigger and better guests, and it helps us grow the team. Truly means a lot. Thank you guys for supporting,

Starting point is 00:00:37 and here's the episode. All right, guys, we are talking franchising today. Very excited because it's something I'm looking to diversify into one day. Lance Growlick is here in the building. My man. Sean, thanks for having me. Excited. Franchising world, man. There's a lot of myths out there, you know. So many myths. The biggest one I see is you need a ton of money to start, but I'd love for you to bust that one. Yeah, everybody talks about McDonald's, obviously. We talk about what we see and what we know. And you look at all the retail franchises out there like McDonald's, Burger King, Wendy's,

Starting point is 00:01:11 and super cuts and great clips in all those salons and personal care. Bottom line is, yeah, you have to be a millionaire to own a franchise like McDonald's. But I represent tons of brands that under $200,000, you can get a $150,000 SBA Express loan and actually make money. I have a $68,000 franchise, a business services franchise, 68 grand. There are people that are netting $300,000 a year, $500,000. There's some that net a million.

Starting point is 00:01:40 Wow. They start hiring employees, and you start home-based. So most people, even with technology and Google, you can search your way into finding a franchise, but franchising like the stock market, there's like 5,000. That's a lot. There's also a myth that you need to be super hands-on, you need to be there in person, but there's some where you could be more flexible, right?

Starting point is 00:02:01 Yeah. That also has a lot to do with you. It is certainly a myth that you have to be a full-time owner-operator, but not everybody's capable. You and I could think of friends and family members that say, I want to own a business, and you're thinking to yourself, maybe not. You might not be capable. I always say that everybody has skills,

Starting point is 00:02:20 and your skills are transferable to something. The question is what? So there are people that come to me that maybe don't have sales ability. They've never managed people before. I'm not going to set them up with a difficult franchise. There are certain businesses that are easier for people than others.

Starting point is 00:02:37 So if you are the right candidate, I can set you up in many of the great semi-absentee type ownership franchises where you keep your day job and you work 10 to 20 hours a week on the business, not necessarily in the business. Right. And if you want to escape your nine to five that you hate so much, jump out at your convenience. I call that factor the building of the bridge. How do I build that bridge to get from that W-2 job to that being a business owner for the first time? Some people could be a rope that they just, they're crazy.

Starting point is 00:03:14 Risk tolerance, no big deal. Just take that rope. Other people need a solid steel engineered bridge to leave their job. They don't want risk. They don't want to worry about anything. Well, there's no guarantees in life. When you get into a franchise, it still has a little bit to do with you and your abilities. Right. People assume it's just going to work out if they pay this fee, but you still need to put in some work. You need to put in the work. I always compare it to the fitness industry.

Starting point is 00:03:40 If you were a 400-pound guy, obviously you're lean and mean, but if you're a 400-pound guy and you wanted to lose some serious weight and take fitness responsibly for yourself, guess what? You're going to hire a trainer. You're going to have a nutritionist, but who's going to do the work? You. You got to do the work. You're just going to be coached. At the end of the day, it all comes back to you. Absolutely. Any upcoming franchises that are hot right now that you got your eye on? One of my favorites that just entered our portfolio, Anchored Tiny Homes. The first ADU, or Accessible Dwelling Unit, franchise. From 300 square feet to 2,000 square feet, they'll build for you.

Starting point is 00:04:21 And they're just looking for basically business development type folks that can do the front end of this franchise. They'll handle all the back end. Yeah, it's stick built type buildings, but they'll handle all that for you. And basically, franchising is following a proven model. You're talking about a blueprint for success. And all they want you to do is really plug and play. So Anchored Tiny Homes is killing it. I do what we call territory checks. Like if Sean wants a franchise, I have to make sure it's available in Vegas for you.

Starting point is 00:04:55 And I'm doing all these territory checks in Anchored Tiny Homes, and it says pending, pending, which means somebody's already interested in attending a discovery day or essentially just waiting for their money. Nice. So it's a hot franchise.

Starting point is 00:05:08 So that's one. That's a need of service, especially the average house now is $400,000. People can't afford that anymore. So I think you're going to see the housing market go into stuff like that. Yeah, absolutely. You've got to get creative. And people are going smaller when you're paying, you know, how much, $300 a square foot or more to live in a nice place these days? Oh, out here you need, I don't even know how much you need. But in Cali,

Starting point is 00:05:28 it's even worse, I heard. California is crazy. But you can drop a little granny house, so to speak, in your backyard, you know, where zoning is applicable. And they have that figured out. That's the other thing with the franchise. They have all the systems and their legal team has figured out if there's licensing issues. I have an air conditioning franchise in the state of California. They have a master license. So if you want to be a franchisee in California, you can work under their license until you get your own.

Starting point is 00:05:54 Talk to me about air conditioning because that's not a sexy business model, but I've met some killers in that space, man, making millions. You know, it's always those boring, unsexy businesses that are huge money makers. Most people, when I talk to them about that, I prepare them. It's like, look, I'm about to give you some stuff that's going to sound awful like you'd never want to do it.

Starting point is 00:06:16 We can talk about power washing, too. We have an amazing power washing brand. HVAC, any of the essential businesses, air conditioning, plumbing, electrical, they're needed. If we have a problem with any of those things, we're going to call people immediately. Completely recession-proof. So one-hour heating and air conditioning, as an example, is one of my favorites. Been around forever.

Starting point is 00:06:36 The average franchisee is doing like $4 million in revenue. Holy. But there are guys that have exited one hour for 20 million franchisees 30 50 i think the highest i just heard about is over it is over 100 million holy that's somebody one place no no they've they built you but you build see look everybody you know this everybody wants to grow and scale something yeah so there are other myths of you get into a franchise you're buying a job that That's bullshit. Because at the end of the day,

Starting point is 00:07:07 are you interested in coming on the Digital Social Hour podcast as a guest? We'll click the application link below in the description of this video. We are always looking for cool stories, cool entrepreneurs to talk to about business and life. Click the application link below. And here's the episode, guys. Just like buying a house, you're buying yourself equity. So even if you did have one territory of something and you're making $200,000 a year,

Starting point is 00:07:29 you're building equity. So when you go to sell, you'll be able to sell for a multiple of cash flow. Three to five times cash flow is normal or EBITDA, that total normal number. So with one hour, there are people that'll start with a few. Every territory you buy, you'll get a discount. So $43,000 might be the franchise fee on territory one. That'll be your exclusive territory. You get about a 25% discount for territory two and another discount for territory three. So a lot of people come in, write a check for $100,000 or so, get into three territories, buy a couple of vans, five staff, you know, like a dispatcher and a couple of techs. If you're not going to be a full-time owner, you need to hire a GM,

Starting point is 00:08:16 75, 80,000 plus incentives. So the bottom line is all in 235, 235K to open one, but then you buy some extra territories. The point is that there's a lot of money to be made in air conditioning. You can grow and scale it easily following their system. They're masters at it. First year franchisees, they'll do anywhere from 750 to over a million dollars with one territory the first year. As you learn how to grow and scale it, which they will teach you, it's not a problem to get to $3 million, $4 million, $10 million, whatever it is you want to do.

Starting point is 00:08:51 Some people are very happy with having three territories. They'll make their great living. They have a great exit strategy, and that's enough. Other people, they keep adding territories. So you can get to 15 territories or 20 and you don't even have to be in the same state anymore. Because when you know, I have a buddy that owns restaurants. He called me the other day. He goes, Lance, I just bought two restaurants in Indiana. Well, it's a brand he's already with and an owner was retiring. And when owners retire,

Starting point is 00:09:21 they're going to call a fellow franchisee first and say, Sean, before I go outside the box, so to speak, and go outside our family, would you want this? And my friend made an offer the same day. All he had to do was negotiate the two leases with the landlord. Right. Now, what have you seen work in the restaurant space? Because that's a tough space, but I know you have some donut portfolio, right? I used to. It's got holes in it now, but I'm intended. So the restaurant space is a tough space. It's a space that I grew up with and I loved. Started off with TGI Fridays with an uncle many years ago.

Starting point is 00:09:55 We built a TGI Fridays franchise from nothing to 225 million in 1992. Damn. That's impressive. Yeah, those are some big numbers. I didn't know at the time how big of a feat that was, but it's pretty crazy. It's like half a billion in today's, if you do the math. I would figure at least. But I learned a lot from that. Restaurants, between the perishable

Starting point is 00:10:18 goods, theft, difficult employees, it's a tough business. People are stealing you from restaurants? Absolutely. Employees, they're stealing food, they're stealing money. I didn't even think about that one. Absolutely. So I always tell people, if you have restaurant experience and it's something you had, I mean, I talked to a couple recently that had restaurant experience. The guy did. His wife happened to be a CPA, so you know who won the battle of what business to get. They went for a home service brand with a high return on investment. Restaurants typically have a longer runway to make money, and they're just very difficult to manage, and a very steep learning

Starting point is 00:10:55 curve. But if that's something you desire, some people feel like they have to do something that they're passionate about, whether it's fitness or restaurants or whatever it might be. It's just not an easy business. I agree. I did recently a deal called Pure Green, which is an acai bowl smoothie concept. Great concept. And someone had a passion for it. A lady I've been talking to for about a year. I met on Instagram. She's awesome. And she's bringing that to Florida. Loves it. Have you ever gone after these bigger ones like Chick-fil-A, Raising Cane's, anything like that? Well, Raising Cane's, I think last I checked are sort of buying back a lot of their franchisees, preserving that enterprise value. I don't know if they're looking for an exit soon enough. Not really up these days

Starting point is 00:11:41 on them, but they're not my portfolio. I don't represent every franchise, but Canes has also done a great job of development already. And they're looking for big multi-unit developers. So it's a very specialized thing. I have another amazing chicken brand called Huey Magoo's Chicken Tenders. So many people have never heard of it. I've never heard of it. And it's going to be bigger than Canes. Really? It's the old wing stop team oh they have drive-thrus now they have more

Starting point is 00:12:10 on their menu you know it's not just chicken fingers or fried chicken fingers they do a grilled tender they do salads they do some wing sauces homemade ranch like like wing stop did and and they're just killing it. The quality is amazing. It has something for everybody. It's not just a very limited menu. So they're amazing, but they're only looking for multi-unit operators. They're looking for people that are in the restaurant business. Now they don't want the franchisee that has no experience. Too many headaches dealing with too many customers, right?

Starting point is 00:12:41 So they want people owning five of them plus. They want people. In fact, their smallest deal yet is, I think, a five-unit deal. Wow. They have two guys that split the state of Georgia, I think it was. Holy, the whole state? They have one guy that owns Mississippi. Damn.

Starting point is 00:12:56 And they're all multi-unit operators. So there's a lot of money in franchising, a lot of money in restaurants when you know what you're doing. You asked about Chick-fil-A. As a matter of fact, I was just doing a video for YouTube on Chick-fil-A because everybody talks about it. And it's a great restaurant concept, but it's not a traditional franchise. You pay like 10 grand to get in. That's it? That's it. But you don't really own anything.

Starting point is 00:13:19 You're an employee of the company. They call you an operator. They don't even call you a franchise owner. I hear rumors that they might be changing some things there. That's too cheap. Chick-fil-A. Well, it's cheap, but they own you. So for you, as an example, everybody loves you.

Starting point is 00:13:35 So you go in there and you become a franchisee. The last step would be like, Sean, now you have to divest yourself of everything. You can't do anything else that's not worth it no well to a lot of people it is because they might be jumping out of a corporate job or whatever they're going through in life they might be an amazing person that fits the culture and i think the lowest or the worst operator out there for chick-fil-A, they got to be taking home at least $300,000 a year. At least. At least. And I know some of them that are $500,000 and above. Imagine making a half a

Starting point is 00:14:11 million a year being an operator for Chick-fil-A. Wow. Closed on Sundays. Yeah. And you have one unit. Now, if you want a second unit, it's going to take you a really long time to do multi-unit with them. And there's no guarantee on that. The selection process itself is at least 18 months. Oh my gosh. And I heard you have to be Christian too, right? Well, I don't know that that's public knowledge or if that's really, but it's possible.

Starting point is 00:14:36 It's possible. We'll leave it at that. Yes. I love that. And once you pay the fee, what other costs are there other than the initial fee? Well, you're talking about Chick-fil-A in general? Just in general with franchising. Well, in general with franchising, there's always a franchise fee. And there's a lot of misconceptions about fees. I had a guy recently, and his son came to me and said, I want my dad to hear about franchising. And funny, he had a small air conditioning company that he started.

Starting point is 00:15:01 He had for eight years. He goes, there's too many fees in franchising. Why would I get involved in a franchise? I said, well, tell me about your business. He says, well, I've been in business eight years. So what was your revenue last year? He goes, right at $800,000. So you're making money. You're happy. He goes, yeah, I work hard, but it's good. I make a great living. I have a good crew. Great. So what if I told you that if you paid $43,000 to join my favorite air conditioning franchise, you would have done that $800,000 plus plus in the first year? What?

Starting point is 00:15:33 I said, so you pay to join a franchise. Everybody listening knows what a mastermind is by now, right? You pay a lot of money to join Tony Robbins or Richard Branson. I had Kelly Roach on my podcast recently. I think she said hers was $80,000. You pay to join masterminds to be with people that are a lot more successful than you. And by being there, if you're smart, you will figure out how to get yourself to the next level with these new relationships. That's what franchising is.

Starting point is 00:16:04 So I explained to him, if you would have paid to get in, and you still can, one-hour heating and air conditioning has a conversion process for people that are already in the air conditioning business. So you pay that franchise fee. In this case, with one hour, it's $43,000. And then you pay a royalty. And the royalty is a percentage of your gross sales. And the royalties could be 4%, 8%. It just depends on the industry. But the idea is,

Starting point is 00:16:35 there's enough profit margin, and the brand is supporting you for life. Right. It sounds like, based on what you're saying, you can make the money back pretty quickly. If you can't figure out what I call the profit path and how this is going to pencil, with one hour I gave examples, very easy to pencil. You're going to do the revenue because they have the systems to scale that you will not figure out on your own. And if you do, by hiring coaches and paying a lot of money, it's the same idea. But then you don't have those coaches for support on an ongoing basis as things happen. So it is absolutely worth it to the people that don't think it's worth it. I always say it's like marriage. Marriage isn't worth it to people.

Starting point is 00:17:20 To me, it is. Yeah, I agree. Yeah, for half the population, it isn't though. Yeah, absolutely. 50-50. So it sounds like you do need some hiring skills though to build out the team. You know, all of those skills are teachable and learnable and every great franchisor is going to teach people how to hire people and how to do anything that they're lacking.

Starting point is 00:17:42 Got it. However, no doubt, if you know how to hire people and you've done it before, like I have, I learned. I made tons of mistakes in order to be where I am today. And I learned along the way and I learned from great mentors. Wish I had even more mentors. And that's what I do also for people after the sale, help them with anything and everything they need. I love it. So did you have a mentor in this space when you were getting into it? You know, I didn't really have a mentor as I got into franchising. As I got into TGI Fridays, a gentleman that I still consider to be my mentor, Ken, Ken Green, if you're listening.

Starting point is 00:18:16 Ken is absolutely amazing. And he was the old executive in charge of our TGI Fridays franchise. He was the one that got that franchise to $225 million a year. I ended up being an area manager, a regional manager. Got it. And I got to witness through that Uncle Stephen, a relative of mine who owned that franchise. He wanted somebody he can trust.

Starting point is 00:18:39 Everybody wants somebody they can trust inside, in the kitchen, so to speak, in this case, understanding what's really going on in this franchise. Right, have someone hands-on. Exactly. Everybody wants a relative that they can trust. I love that. Have any of your franchises failed over the course of time you've been doing this?

Starting point is 00:18:57 I opened a wing stop inside Green Valley Ranch Casino in the old days. I didn't know that. And it sucked. It was just a bad spot. It was a a bad spot. It was a very cheap remodel of another restaurant that failed. But it was a little too early. Wingstop was still growing in Las Vegas.

Starting point is 00:19:18 I mean, when I opened my first Wingstop in Las Vegas, it only did 5,000 opening week. That's it? Well, it was a new brand. People had to get to know it. By the time I opened store four, it was about 35,000 opening week. I think it was just shy of 36,000. I have a paperweight on my desk that I've shown people before on Zoom that commemorates the highest volume Wingstop opening ever at the time.

Starting point is 00:19:39 Wow. Was that the one on Southeastern in Henderson? No, that one was Stewart and Nellis on the east side of town. Yeah, a lot of cops scenes have been filmed there in that old TV show. Crushing it, man. Yeah, Wingstop really killed the wing game. I can't even name another wing company. Wingstop's like the number one wing company, right?

Starting point is 00:19:58 You know, the riches are in the niches, and Wingstop at the time, it's funny that we're talking about this because a lot of people, when I'm showing them franchises today and they're nervous, they want to make sure they get into something great that's making a lot of money. And in every franchise disclosure document is that earnings claim. And Wingstop's earnings claim in the old days was terrible. When I joined, I was store number 60 or so. And the earnings claim showed something like an average sales of 600,000 or something like that. It was not good for a 1,400 square foot place. Although there was a time they were only open for dinner. They weren't even

Starting point is 00:20:37 open for lunch. There was no chicken tenders. It was literally wings only. But the cost of goods was so high. There was an efficiency in the kitchen. These are things that you just need to learn about business. What are the mechanics of the operations? And so there were a lot of people that chose not to do Wingstop in the early days when I jumped in. And it did well. I had great stores and jumped out, took that risk, and it worked out.

Starting point is 00:21:08 For you, do you just base it off the numbers mainly? Like how much is this going to bring in, and do you kind of go from there, or do you care about the product? Like what's your thought process when choosing a friendship? Well, does a vegan care about the product when they jump in a Wingstop? There's a lot of people that don't like certain things but jump into businesses. My favorite story, a local story, is a friend of the family that has 19 Great Clips hair salons.

Starting point is 00:21:33 He's bald and doesn't know how to cut hair. So when he originally heard the idea of Great Clips, what do you think he did? I mean, I didn't represent him at the time. I met him afterwards. But he's like, I was so mad. I was like laughing. This is a stupid idea.

Starting point is 00:21:49 Why would a guy jumping out of corporate do this? But then he thought about it. I always tell people, it's really about your what. Forget about why. Your what. Because he graduated. He retired from corporate America. I guess he did graduate.

Starting point is 00:22:02 And he's like, I don't have all the money in the world. I want to do something, though, with my time and make more money. He figured out his what. His what was, what is your investment? He's like, I'm going to get a $200,000 SBA loan. I'm going to put down my 20%, 40 grand. I want to get my money back in probably two and a half years. And what role is he going to play?

Starting point is 00:22:23 Well, what role was he was going to be a full-time owner operator of something. He was willing to invest his time. Well, Great Clips requires you to be a full-time owner operator, even though you don't know how to cut hair. They'll teach you the business of the business. They'll teach you how to hire. They'll teach you financials and all the things you need to know how to build out a store. So he jumped into Great Clips. He said, it fits. It actually fits.

Starting point is 00:22:48 And all these years later, he's thrilled. He worked hard for a couple of years, and now the family's taking it over. I used to get my hair cut at those, like $15. Yeah, I still do. Oh, yeah? That's hilarious, man. A little windblown today. Shout out to Great Clips and Sports Clips.

Starting point is 00:23:02 That was a good one, too. I used to go to Sports Clips. Sports Clips does a great job good one, too. I used to go to Sports Clips. Sports Clips does a great job as well, another great franchise. They're both sold out in Vegas. Yeah. So can't get one now. Wow. We can work on an out-of-state, though.

Starting point is 00:23:15 Okay. Damn. You represent everyone, man. I have over 900 brands. We'll have over 1,000 by the end of the year in every industry, every investment level. I had one of my favorite finance guys just give me a special report on $150,000 SBA Express loans. There are certain brands that I can get people into with about, call it $25,000 all in, 25,000 cash.

Starting point is 00:23:46 Dang. And they'll give you $150,000 SBA loan. Yeah, we're going to talk after this. But for people watching this, how can they qualify for an SBA loan? Well, all you have to do is reach out to me and I'll connect you. Depending on you and your situation, I have certain lenders for certain things. But I certainly have my favorites and I'll connect you with various lenders. That'll start the process. Although it isn't like buying a home.

Starting point is 00:24:07 A lot of times I tell people, forget about the financing. I believe that everybody at some point can get financing. You only need a 680 credit score, and you need some cash. So there are people that I talk to that don't get a franchise for three years or two years. I just helped a gentleman. It took a year and four months to be exact. I introduced him to literally 23 brands. And eventually he figured out which one he loved. So I always just

Starting point is 00:24:33 tell people, reach out. Nice. Do you guide them from the start? If they have something in mind, will you just make that intro right away? I will. There are plenty of people that come to me that have something very specific in mind. In most cases, though, it doesn't always work out like that. There was a gentleman I was talking to that didn't come with anything in mind, and I mentioned roofing. Based on certain things that he was saying, I mentioned roofing. He wanted a very specialized niche, and I introduced him to Best Choice Roofing, and he became a franchisee. One, one and done. That was it. He bought three territories, I think it was, in LA. Don't sleep on roofing, man. My uncle was a roofer. He was doing a million a year in Pennsylvania, like middle of nowhere.

Starting point is 00:25:13 My buddy owns a bunch of territories for Mighty Dog Roofing in Bucks County. Oh, yeah? Yeah, four territories. Yeah, those Pennsylvanians, man, they'd be roofing it up over there and making millions. Everybody needs a roof over their head. We know that. Yeah. Another great business like air conditioning, you know? Yeah. And some of the businesses in roofing are focused more on insurance. Others are using, you know, getting more cash, you know,

Starting point is 00:25:33 from homeowners to redo their roof or patch their roof. But the message is clear. There are so many franchises out there and so many opportunities. Another hot one is home care. Cleaning. Well, there's residential cleaning and there's also commercial cleaning. Right. Both are excellent.

Starting point is 00:25:51 I have a residential cleaning brand, the Cleaning Authority. 60% of franchisees have an MBA. Wow. And a residential cleaning brand. And no, they're not doing the cleaning. Yeah, I hope not. They put the people in place. But home care is senior home care, is one of the hottest industries.

Starting point is 00:26:13 Most people have no idea about it, especially young people. I didn't know. And as my parents got older, unfortunately, I had to have that experience. And it's a very helpful experience in times of need. As seniors get older, can't take care of themselves anymore. The spouse can't take care of their husband or wife. And when my dad first got sick, that was my first experience with home care franchises. We hired the agencies and folks to come in, and the non-medical home care space is exploding.

Starting point is 00:26:46 Every day another 15,000 people turn 65. Damn. And this is companion care. This is making a sandwich, fluffing a pillow, taking them to the bathroom, things like that, but it's especially on the non-medical side that is killing it. I just got a guy who had some tech background in California, in the Sacramento area. He got a territory of a brand called Home Helpers.

Starting point is 00:27:10 They only allow you to get one. They have a great brand, very established, great TV commercials, and he calls me after four months. I need another territory. This is great. I'm killing all the numbers. I want to get it before somebody else buys it. And we got him

Starting point is 00:27:25 special approval because he was doing so amazingly well to get a second territory. That's impressive, man. Never would have thought about that. But yeah, people don't want to- And he didn't either. Yeah. People don't want to send their parents to nursery homes. They want to be hands-on with them and see them. And that's the thing. You mentioned people come to me. How many times do they come with ideas? A lot of them come with ideas. But in most cases, I'm showing them other things they never really thought of.

Starting point is 00:27:50 Yeah. And that is what's the magic of the process. And my services are actually free. I get paid like a recruiter. You know, I get paid by the brand some sort of fee when we're successful matching somebody. That's cool. Yeah. People really like that about...

Starting point is 00:28:06 They do. They can't believe it. They're like, what do you mean you don't get it? What do you mean I don't pay you? This isn't like real estate. We're closing. No. There was a big lawsuit about that.

Starting point is 00:28:14 There is. Real estate is... Just settled. No more buyer's agents or something? I think it's about buyer's agents. Yeah. They just cut them out completely. Pretty crazy.

Starting point is 00:28:22 I mean, whatever. What was I going to ask? Oh, for contracts. Like, are you locked in for life? Like, how does that work if you want to franchise? So a franchise contract, like a marriage certificate, it states a lot of things. Basically, you do this, I'll do this.

Starting point is 00:28:41 It's typically a 10-year agreement, typically. As you can see with a lot of brands like McDonald's, it's generational where the family keeps third generation, fourth generation in the business for those that didn't sell. So it's easy to renew a franchise as long as you're in good standing. If you're not, I mean, when I was at Wingstop, there was a lady that had a Wingstop that was selling other food items. She was not allowed to sell. That's a problem. Now you're going to get a nice lawyer's letter that says, you know,

Starting point is 00:29:11 you got a problem, lady. You can't do that. That wasn't the brightest idea. You follow our system. And some people tell me that. They go, well, I don't want to get locked into a franchise and be told what to do. I was like, isn't that't that a sort of a marriage?

Starting point is 00:29:26 Isn't that a, I mean, really it's a two way street, but you know, you have to know what you're getting yourself into, into any business relationship. And the idea is if you don't have your own original idea, a franchise could be right for you when you find the right franchise. I like this model. It's a lot easier to buy into a business existing with numbers, with revenues rather than start your own. It's way more riskier, right? Yep. Well, and as you also know, everybody on the internet, it seems like so many are talking about buying existing businesses. Well, that's a great idea. The reality is the average inexperienced individual that's never owned a business can of a very difficult time navigating that process. And even if they achieve the goal of buying an existing business, especially if it's not a franchise,

Starting point is 00:30:11 now what do they do? They're all by themselves on an island. So they better be really smart and have a great team of people helping them. So I always tell people, the best first step for business ownership is to just get into, buy a franchise. And it's amazing once you buy a franchise, what happens to you. All of a sudden, now an existing business, an interesting niche down the street opens up, and another industry for that matter. But now you have the confidence, the cash flow, and experience to do something else. Yeah. I might have to buy one of these a year. You could. I've had plenty of clients come back to me

Starting point is 00:30:46 and buy more franchises, different concepts. I love it. Lance, it's been fun, man. Where can people get in touch with you and find out more about how to do this type of stuff? Well, shoot me on Instagram. Let's see. What should we use for you?

Starting point is 00:30:58 Sean. Just DM me Sean. Okay. And you can do that, LanceGralic.com. I have a free assessment on all my websites i have so my podcast is i on franchising eye on franchising i know you're putting the show notes assessment is there as well i can also dm you the assessment cool the assessment helps me and you understand your skill sets mindset life experiences to understand what what business could

Starting point is 00:31:22 be best for you perfect so happy to help anybody yeah we'll link below thanks coming out man thank you absolutely thanks for watching guys see you tomorrow

Digital Social Hour - Franchise Myths BUSTED: Make $1 Million With $68K Investment! | Lance Graulich DSH #588

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