Episode 2220 notes

So, you want to own a franchise? Buy into a pre setup plan, work it hard and make great money. Then, maybe sell after a few years and do it again. All this while enjoying like, making your own rules and taking great vacations.

Well, before you get started, please listen to my two outstanding guests from Francise Resource. CEO Luke Towey and Chief Development Officer Dillon Towey have owned, built up and sold multiple franchises successfully, but what they do now is help those who are starting out, figure out the right franchise for them, what to expect, what are the gotcha’s and what to expect that is always ‘unexpected’.

This is our episode called: How to create a healthy business by selecting the correct franchise (for you).

• Are your Top 5 franchise candidates in your Buy-Box? Did you know that: -Nine times out of ten, that regarding new francise owners, "what they think they're going to do probably doesn't fit what they're really cut out to do".
• Why was Dunkin Donuts a not perfect franchise for a couple with kids starting school while one in early child development was in their buy box… it’s not what you think.

Learn More from the experts here:

https://franchiseresourcellc.com/

This is season 22 episode 20 of America's Healthcare Advocate. I'm Cary Hall.

Have a question for me: https://www.americashealthcareadvocate.com/contact-us

As always, if you need help or have something to share, contact me using this form on my website and let me know what's on your mind, the issues you are dealing with, or any other health, healthcare, or health insurance questions or concerns. Visit: https://www.americashealthcareadvocate.com/contact-us

Episode 2220 Transcript:

00;00;00;04 - 00;00;17;20

Cary Hall

Hello, I'm Cary Hall, America's Healthcare Advocate, on today's show. Joining me in studio, Dillon Towey and Luke Towey from Franchise Resource. You know, you're thinking about making that move into the franchise world. You probably want to talk to these folks. You probably want to listen to this broadcast because you're going to learn a lot you didn't know.

00;00;17;23 - 00;00;24;07

Cary Hall

Stay tuned. Listen and learn. Today as we talk to two experts in the franchise world.

00;00;24;09 - 00;00;42;09

Cary Hall

And now America's Healthcare Advocate Cary Hall. Hello, America. Welcome to America's Healthcare Advocate show broadcasting coast to coast across the USA. Here on the HIA Radio Network. You can find out more about us by going to the website America's Healthcare Advocate.

00;00;42;14 - 00;01;09;02

Cary Hall

All these shows are broadcast on 243 radio stations across the country. Our 16 podcast channels and our YouTube channel. I'm happy to report that the podcast channel YouTube channels are up to 643,000 downloads out there. Because of all of you in the audience, we greatly appreciate that and we appreciate all the support and interest in this broadcast. In studio with me today, Dillon Towey and Luke Towey looks back for a second time.

00;01;09;02 - 00;01;09;19

Cary Hall

Welcome back.

00;01;09;19 - 00;01;10;16

Luke Towey

Luke. Thanks, Cary.

00;01;10;18 - 00;01;13;04

Cary Hall

They came up from Nebraska last night. Welcome, Dillon.

00;01;13;06 - 00;01;14;24

Dillon Towey

Yeah. Thank you, thank you. Here. Thank you.

00;01;14;27 - 00;01;27;28

Cary Hall

And they are the brothers that own Franchise Resource. It's a fascinating company. I think what they do is very helpful. Unusual, if you will, especially to people that are trying to make that move out of the corporate world. You see this opportunity for franchisees and think...

00;01;27;29 - 00;01;45;01

Cary Hall

Oh my goodness. This is a package deal. I'll buy in. You know, my wife and I or my family or maybe, you know, the person moving by them, by themselves think, this is a real opportunity. I'm going to really do well at this. Maybe I'll get 2 or 3 of these things and then, you know, five, six, seven, ten years down the road.

00;01;45;01 - 00;02;02;06

Cary Hall

Sell them and ride off into the sunset in that 45ft RV. Well there might be some challenges with that. So Luke let's talk a little bit about just how you guys started. You're like a family owned company. Obviously you and your brother here, you've got other family members in the company. You've been doing this now for, what, 14 years?

00;02;02;06 - 00;02;03;16

Luke Towey

About 14 years. Yep.

00;02;03;19 - 00;02;08;28

Cary Hall

Okay. 2012 we started and you started out basically doing the accounting in the bookkeeping. Yep.

00;02;09;05 - 00;02;28;28

Luke Towey

I, was working for a franchisor prior to that. And, they were going through a private equity sale and so left there to go work at a family office doing some investment, early stage investment, in health care technology. And at the same time, some of those franchisees reached out and were like, hey, my financials aren't straight.

00;02;28;28 - 00;02;55;02

Luke Towey

I don't, you know, they could sell, but they didn't understand their financials. And when things were turning a little bit down, you know, the bank account would go down and they were like, what am I supposed to do? And so we started helping a couple of those just on the side out of our home. And that just kind of grew to us kind of getting a niche in emerging franchises and partnering with those brands and kind of standardizing all the accounting and bookkeeping for, for their brand.

00;02;55;04 - 00;03;17;27

Cary Hall

But there's a lot more that you do. Okay. Besides that now, I mean, you know, the accounting bookkeeping is obviously a very important part of that because, you know, you have to learn how. What do you mean? I have to file a sales tax report. Yep. Okay. And I gotta issue k1s and I have to do all these other things that you come out of the corporate world and where a lot of these people come out of the corporate world, they've got a nice 401 K, they've got money set aside.

00;03;17;27 - 00;03;37;09

Cary Hall

They say, okay, I can put $100,000 into this and buy into this thing. And actually be able to have a business of my own. It's always been our dream. I'm sick of the corporate world and all the corporate nonsense. And then they find out there are all these other things that they don't know they're going to get to do or have to do, and it's like, oh my God, what did I get into here?

00;03;37;12 - 00;03;58;21

Luke Towey

Absolutely. Yep. That's that's that's truth. I mean, they just don't know exactly what they're getting into in the corporate world. They probably already had always had somebody that kind of did those things for them. And now they're in charge of the P&L. They're in charge of everything. Right. And the franchisor provided the playbook, but they still got to run the business and, file their taxes and pay sales tax and do all those kind of things.

00;03;58;21 - 00;04;00;08

Luke Towey

And they've never had to do that before.

00;04;00;08 - 00;04;13;29

Cary Hall

It's like a whole new world. It's like, oh, well, yeah, I kind of knew I was going to have to do this, but then how do I do it? Yeah. Yeah. And, and it becomes, a little bit different than what they thought it was going to be.

00;04;14;02 - 00;04;15;13

Luke Towey

Yep. Absolutely. Yeah.

00;04;15;13 - 00;04;29;00

Cary Hall

So that's where you guys come in. You know, your family owned companies. I said, your brothers here, you've got other family members in the company, and basically you're here to help guide them. Give them advice and help them make their business be successful.

00;04;29;02 - 00;04;44;14

Luke Towey

Yeah, yeah, we want to kind of be that second set of eyes for their financials and how they're performing and help provide some guidance and let them focus on, you know, hiring good people and managing employees and going out and generating more revenue. Right. And not have to worry about kind of the back end.

00;04;44;21 - 00;04;57;03

Cary Hall

Yeah, we kind of call that working on the business not in the business. You know, you know, when you're the when you're having to do all of what you guys do in addition to try to run the business, you don't have a lot of time to run the business like you'd like to run it, right?

00;04;57;03 - 00;05;12;20

Luke Towey

Yeah, exactly. Nobody wants to be up at 10:00 or on the weekends trying to catch up on financials. That's the time that you want to have some, Most people do this, too, because they want to have some kind of balance with their family life outside of corporate America. Right. So you don't want to be running 24 seven.

00;05;12;20 - 00;05;17;17

Luke Towey

And if we can take this piece off of their plate, you know, make it easier for them, that's that's great.

00;05;17;19 - 00;05;45;18

Cary Hall

And of course, then they do find out they're running 24 seven because they didn't. And they are working Saturdays and Sundays because they're trying to catch up. Keep up. You've got to report back to corporate, back to your to your franchisor, if you will, you know. All right. Because they want to know how you're doing. And you still got all these all these tax, I think I one time I actually looked this up, I think they're yeah a franchisee pay something like 21 different taxes that they actually have to pay.

00;05;45;23 - 00;05;56;23

Cary Hall

When you look at their taxes they have to pay. I mean it's it sounds ridiculous, but it's actually very true. And a lot of times you don't know that stuff going in right.

00;05;56;28 - 00;06;11;28

Luke Towey

Exactly. Yeah. Yeah. If you'd never done it before, you don't know, right. You don't know what you have to pay and you're trying to balance what you can bring home at the end of the day and, balance that. So yeah, we want to be that guide for them. And if we don't provide it in-house, we, we want to provide the partner that can help them out.

00;06;11;28 - 00;06;12;07

Luke Towey

Right.

00;06;12;09 - 00;06;21;02

Cary Hall

Provide some guidance. And you guys partner with him to do that in addition to the work that you do, if they need help in some other area, you're able to help them do all of that.

00;06;21;05 - 00;06;21;21

Luke Towey

Absolutely.

00;06;21;28 - 00;06;40;23

Cary Hall

What you think the dream is going to be. And I speak as somebody we talked about this over breakfast this morning. You know, I speak as somebody that had a franchise, and, it was a very difficult process, and it was a very difficult operation to run. And I had no idea. And I didn't come out of the corporate world.

00;06;40;23 - 00;06;57;09

Cary Hall

I came out of my business in California, which we sold. We moved here to Kansas, and got into this franchise, the Mister Goodcents franchise. And I had no idea. I mean, I know what we were told and how we were told it was going to run. And then I found out what it was like to really be the guy.

00;06;57;12 - 00;06;58;09

Cary Hall

And it was a little different.

00;06;58;13 - 00;06;59;01

Luke Towey

Different thought it.

00;06;59;01 - 00;07;09;05

Cary Hall

Was going to be. Yeah, I think I think for a lot of people, that turns out to be kind of a wake up call. And the problem is that once you've committed, you're committed.

00;07;09;08 - 00;07;11;03

Luke Towey

You are.

00;07;11;03 - 00;07;14;06

Cary Hall

and you want it to be successful. And.

00;07;14;06 - 00;07;15;27

Luke Towey

Some people need it to be successful. Yeah.

00;07;15;27 - 00;07;31;18

Cary Hall

Well, yeah, when you dumped your life savings into one of these things, or a big chunk of your life savings. I mean, some of these franchises I was fortunate. I think we got into ours for either 50 or $100,000. I can't remember what it was. I remember what I gave it back to him for, when I walked away from it.

00;07;31;18 - 00;07;48;12

Cary Hall

But, but, Yeah. Yeah, that was interesting point you just made, you know, you dumped a quarter of $1 million in something like this, or even more than that for some of these franchises that are more money than that. And you better make it successful or you're going to have a less than pleasant retirement.

00;07;48;12 - 00;07;49;19

Luke Towey

Yep. Exactly.

00;07;49;22 - 00;07;56;07

Cary Hall

And I think a lot of people think that this is their path to, you know, total retirement and all the rest of it. And that's really why they're looking to make that move.

00;07;56;10 - 00;08;03;06

Luke Towey

Yeah. They do. They want the they want the freedom and the lifestyle. And then they kind of want to do it on their own and kind of forge their own path. Right.

00;08;03;11 - 00;08;22;01

Cary Hall

Except for maybe they come back and find out they didn't had quite as much freedom as they thought they were going to have, because there's a hell of a lot more work involved than they thought there was going to be. Coming up on the break. And we come back from the break, come to switch topics down, talk to Dillon. You know, if you're one of these people that's actually considering doing this, you probably want to talk to somebody that knows what you're walking into.

00;08;22;04 - 00;08;41;22

Cary Hall

That's what these people do. They're really good at what they do. They're a family owned company. The website is FranchiseResourceLLC.com. Reach out to them if you want to just have a conversation. We're going to talk about this. We come back in the break. We're going to talk with Dillon about this consulting piece. What what is it I need to know before I make this move?

00;08;41;22 - 00;08;59;10

Cary Hall

I know what the dream is, but what do I need to know before I. Before I make the move? And the move doesn't turn from a dream into a nightmare. If you just want to talk to somebody and try to understand that maybe you're considering this, you're thinking about doing it. Go to their website, FranchiseResourceLLC.com. Send them a quick note.

00;08;59;10 - 00;09;23;11

Cary Hall

They'll be happy to catch up with you. We'll be right back after the break. You're listening to America's Healthcare Advocate Broadcasting here on the HIA Radio Network. Coast to coast across USA. Don't go anywhere. We've got more.

00;09;23;14 - 00;09;41;20

Cary Hall

Welcome back. You're listening to America's Healthcare Advocate Show, broadcasting coast to coast across the USA here on the HIA Radio Network. If you want to reach out to me, maybe you want to send me an email. Maybe you've got a question. If I can help you with anything regarding health insurance, health care, or any other issues, please feel free to reach out.

00;09;41;20 - 00;09;59;09

Cary Hall

Go to the website AmericasHealthcareAdvocate.com. Send me an email. I get a lot of them. But you know what? I answer each and every one of them. You send me an email, I will respond to you. I'm happy to help in any way that I can. In studio again with me, Dillon Towey and Luke Towey. And we're talking about their company, Franchise Resource.

00;09;59;09 - 00;10;18;29

Cary Hall

We're also talking about people that do this. You know, they come out of the corporate world. And this is really kind of interesting because this actually kind of came to my attention, a couple of weeks ago when, Luke and all of us were on a call talking about on a Teams meeting, talking about, the GigCare product that they're offering to the franchises through 1099 for health care benefits.

00;10;18;29 - 00;10;43;22

Cary Hall

And, they had sent an email and, one of the ladies who actually worked for a franchisor immediately reached out within 30 minutes of the time that Luke had sent the email out and said, oh my goodness, this is one of the best things to ever happen, because one of the biggest hurdles people have is trying to go from their corporate job with their group health insurance policy over to, finding private insurance in the marketplace, which can be very difficult.

00;10;43;22 - 00;11;02;10

Cary Hall

So it kind of opened my eyes a little bit to the challenges that are being faced. And we talked a little bit about this. Well, actually we talked a lot about it at breakfast. So Dillon, you have a piece in your information on your website talks about consulting, but you really do a lot more than just consulting to somebody.

00;11;02;10 - 00;11;22;10

Cary Hall

It's already existing. Talk about, you know, your job is enrollment and bring people in getting them set up and all that. Talk a little bit about what how you guys help people. If somebody is interested. They think they want to do this. They want to get their toe in the water. They want to understand it. They like the idea, you know, of a particular franchise.

00;11;22;10 - 00;11;39;17

Cary Hall

You mentioned a couple the gym concepts. There was a turf company, which I thought was pretty amazing. We'll talk about that a little later. And then dog sitting services. So just talk about a little bit about what happens when somebody reaches out to you guys and go, okay, we think, we have the money. My wife and I, it's usually a...

00;11;39;17 - 00;11;46;17

Cary Hall

I'm assuming it's usually a husband, a wife. We have the money and we have the desire. But is this a smart move for us, Dillon?

00;11;46;23 - 00;12;23;03

Dillon Towey

Yeah. No, you're spot on. So, you know, I had the luxury on the Franchise Resource accounting side to do all the onboarding and development. So I had the opportunity to speak to these new franchisees, right, that, were extremely excited, about their new business, and new franchise. And we got to keep that relationship going for months and years and sometimes we would see that emotion totally switch from super excited to things maybe weren't going the way they were supposed to or they, they were sold.

00;12;23;05 - 00;12;46;14

Dillon Towey

And so, working with Luke and, and thinking about that, we thought these guys are, potentially being sold something that is not the right fit for them. And so that's where the consulting piece came in, where we said, you know what? We can spend a little bit more time with them, ask them some, appropriate questions to find out what is the best fit for these people.

00;12;46;14 - 00;13;08;06

Dillon Towey

Right. What franchise opportunity is the best? And, with over 4000 franchise opportunities out there, it is extremely important to narrow that down, and work with these folks to find, really what, they're looking for. Do they want to have ten, 20 employees? Do they want to have a brick and mortar location or operate from their home?

00;13;08;08 - 00;13;28;26

Dillon Towey

How much do they want to invest? Do they want to run this for three or 4 or 5 years and sell it, or is it, you know, are they going to pass it down to their children when they're done? So all sorts of, all sorts of questions that we ask these folks, during the consulting process to make sure, hey, this is the right brand.

00;13;28;29 - 00;13;33;02

Dillon Towey

It kind of fits your buy box is what we call it. Buy box. The buy box.

00;13;33;03 - 00;13;34;11

Cary Hall

Okay, I like that.

00;13;34;13 - 00;13;53;29

Dillon Towey

And the other thing is. Right, is the the best franchise opportunity for one candidate is the absolute worst franchise opportunity for another. So, I get questions all the time. Hey, I want to see your top five brands. Well, the top five brands for one individual would not be the same.

00;13;53;29 - 00;14;00;16

Dillon Towey

Top five opportunities and brands for another based on what their buy box is, right.

00;14;00;18 - 00;14;15;21

Dillon Towey

And so a number of those things, we go over through that consulting process, discovery process, to, to make sure that we're, you know, lining up, playing matchmaker, if you will, between that candidate and the right brand.

00;14;15;26 - 00;14;21;06

Cary Hall

So that's fascinating. So talk a little bit about the buy box. What's in the buy box.

00;14;21;09 - 00;14;55;20

Dillon Towey

Yeah, a number of things. Do they, want to be in a physical retail space? Do they want to run the business from home? Okay. Do they want to, be the face of the business? And, you know, basically buy themselves, say, a job, a 9 to 5 a paycheck. Exactly. Or are they looking at it as an investment opportunity where they're going to put a general manager in place and just manage that manager, maybe spend, you know, 15, 20, 25, 25 hours a week on it, instead of 40, 50, 60.

00;14;55;23 - 00;15;14;03

Dillon Towey

Do they want to, be in the home service space? Do they want to be in health and wellness? Do they want to be in, the pet industry? You know, where do they, have passion because it needs to align with their passion, needs to align with their investment level. Needs, align with their skill set.

00;15;14;05 - 00;15;28;21

Dillon Towey

We asked them, do you like sales? Do you like marketing? Are you a networker? All of those things, we asked, during the discovery process to make sure that we're, you know, pairing up and showing them the right opportunity.

00;15;28;22 - 00;15;50;26

Cary Hall

Okay, so I work in corporate. I'm an accountant, okay? And I work in the accounting department of, of of of a big company. And I've been doing here I'm 20 years into this company. I'm ready for retirement, but I'm not ready to retire. I'm 55 years old. And I think I want, I think I, I went out and I found those top five brands, okay.

00;15;50;26 - 00;16;07;09

Cary Hall

And I went up on ChatGPT or on the websites, and I looked them all up. And by golly, I think I know what I want to do. Then you said, do you like to do sales? Do you like to do cold calls? Do you like to do networking? Do you like to go to events and tell people who you are and what you do?

00;16;07;09 - 00;16;25;01

Cary Hall

At the chamber of Commerce and, the 4 or 5 or six, you know, and I speak to this from somebody who's done this. I mean, my, health insurance agency Benefits by Design that we sold to Northwestern Mutual. I did all that. I started this radio show doing that. But you either like that or you hate it.

00;16;25;03 - 00;16;41;18

Cary Hall

And even if you think you like it, you may not like it as much as you thought you were going to when you're out doing the door knocking. Okay. So it's really interesting. We were coming up on the break and give me a couple minutes on that before we go to break, because that to me that's a real that's a real impediment if you're not okay with doing that.

00;16;41;18 - 00;17;04;01

Dillon Towey

Yeah. Well you hit the nail on the head there because nine times out of ten, when we begin working with a candidate looking to get into franchising and business ownership, the brand 2 or 3 brands that we narrow it down to or the one that they finally invest in, nine times out of ten, it's not anything that they ever thought they would be a part of.

00;17;04;03 - 00;17;06;21

Cary Hall

Right. Why is it that doesn't surprise me. Yeah.

00;17;06;23 - 00;17;28;09

Dillon Towey

So it's it's generally something that they didn't even know was a franchise opportunity. Or they came into our initial call, and said, you know what? I would never do this or do that or be in that line of business. But then it rarely fails where that is not in their final couple brands that they're, they're looking at.

00;17;28;16 - 00;17;45;27

Cary Hall

It's, it's fascinating. It doesn't surprise me. Okay. So I think back on my own personal situation, I'd known six months after I was into this thing, what I was getting into, I never would have done it. Okay? It wasn't the hard work. It was the other pieces of it that made it so difficult. So that's fascinating information.

00;17;46;02 - 00;18;01;19

Cary Hall

When we come back from the break. We're going to unpack some more of this, because I think this is this is the biggest challenge in my mind that you face. If you're someone who thinks they want to make that move, you want help, you want to talk to somebody about this. Maybe you're listening to this right now and you go, I really need to talk to my husband about this.

00;18;01;21 - 00;18;25;06

Cary Hall

I really need to talk to my wife. And so we're going down this way. Maybe we should be doing something different. Go to the website FranchiseResourceLLC.com FranchiseResourceLLC.com. Dillon will talk to you. Luke will talk to you. They're happy. They're agnostic okay. When it comes to what brand or what franchise you pick. But they're going to tell you the reality of what you think you're walking into.

00;18;25;12 - 00;18;53;03

Cary Hall

You just heard him say nine times out of ten, it's not what they thought it was. It's probably you. If you're listening to this, we'll be right back after the break. You're listening to America's Healthcare Advocate. Broadcasting here on the HIA Radio Network. Coast to coast cross, USA. Stay right there. We got a lot more after this.

00;18;53;05 - 00;19;18;18

Cary Hall

Welcome back. You're listening to America's Healthcare Advocate show, broadcasting coast to coast across USA here on the HIA Radio Network. Shout out to our station, our affiliate in Lincoln, Nebraska, KLIN 1400 AM, 99.3 FM. Been with us quite a while. Happy to have them up in the Cornhusker State. Just happened to be by the way we're looking donor from, so we're happy to have them on board in studio with me, Dillon Towey and Luke Towey.

00;19;18;21 - 00;19;36;15

Cary Hall

We're talking about their company Franchise Resource, and their website, FranchiseResourceLLC.com. We were going down that path unpacking that box. Dillon, let's kind of keep going through that a little bit. You know, so so there's the buy box that you talked about. And the other thing I thought was interesting in that last segment was the top five.

00;19;36;21 - 00;19;58;14

Cary Hall

Yeah. But then you came back and said, nine times out of ten, they what they think they're going to do probably doesn't fit what they're really cut out to do. Okay. So let's go a little further into that. And the other thing I want to point out here, because you guys said this over breakfast, Luke, is that you're agnostic in terms of if you want to do this franchise, we don't care whether it's this one, this one, this one.

00;19;58;21 - 00;20;02;03

Cary Hall

What you really care about is does it fit? Are they going to be successful. Yes.

00;20;02;03 - 00;20;30;01

Luke Towey

Absolutely. Yeah. So that's why we're asking lots of questions. We're kind of the tour guide and trying to to figure out what, what they're looking for by and asking them tons of questions about, you know, do you want a business that runs seven days a week? Right. Like, you know, for example, that franchisee that owned a bunch of the Dunkin Donuts and they they found out when they were going to have twins that, hey, how was I get how am I going to take care of the twins, be at their activities when this business is basically nights and weekends, right?

00;20;30;01 - 00;20;48;10

Luke Towey

Like I can't run this without that. And so I went out to look for a business and you know, and they had all these different things that they were looking for. And they found out that, you know, early childcare development was because there's no nights and weekends, right? Like, you're there. Oh, how interesting. I mean, so you're, you're basically school hours, right.

00;20;48;10 - 00;20;50;06

Cary Hall

And and you're off on Saturdays.

00;20;50;09 - 00;20;51;00

Luke Towey

And Saturdays and stuff.

00;20;51;00 - 00;20;52;04

Cary Hall

But you get the holiday.

00;20;52;07 - 00;21;09;19

Luke Towey

You go days off when they're not at that. So that that became the perfect opportunity. But they didn't, you know, they didn't know that when they started. So it's just going through the checklist of different things. And then depending on category, depending on what fit, you know, we might have a top five or a top ten in each category.

00;21;09;21 - 00;21;30;05

Luke Towey

Whether it's B2B, B2C, they really want to be in childhood enrichment. They really want to be in the pet care space, you know? So then we can narrow it down once we find out how those answers pair up. So, like I said, yet they they don't know that that might fit when they first come in.

00;21;30;05 - 00;21;41;06

Luke Towey

They might be zoomed in on one opportunity, but when they, then they, then they give all the answers to all the questions and you're like, well, that opportunity that you wanted doesn't fit any of those, any of those things that you.

00;21;41;09 - 00;21;41;23

Dillon Towey

Said that you.

00;21;41;23 - 00;21;47;25

Cary Hall

Wanted, that you don't. It's going to be a little more difficult than you thought it was going to be. Yeah, yeah. Just fascinating. Yeah.

00;21;47;27 - 00;22;05;05

Luke Towey

And for some people, maybe it is the right opportunity. Right. But you know what stage of life are you at? Right. So you have kids, you don't have kids. You're before that. Or maybe your kids are all gone and maybe you don't care if you have to do nights and weekends, right? So it's just pairing up what their vision is.

00;22;05;05 - 00;22;21;26

Luke Towey

And and like Dillon said, I mean, that's really it's sometimes it's the money thing of the expectations. But a lot of times it's the lifestyle and what kind of time and effort and energy they're going to have to put into the business what their perception of it is versus what the reality is.

00;22;21;26 - 00;22;40;04

Cary Hall

And so I think there's a big gap between perception, reality. So Dillon, you said this on the break and I want to get this. I kind of titled this, “You don't know what you don't know”. So you think you're good in the franchise business. You're driving down Main Street and wherever you live might be. And then you see 15 franchises.

00;22;40;04 - 00;23;01;03

Cary Hall

It's, you know, the Pizza Hut, the Firehouse Subs, the Chick-Fil-A, Chick-Fil-A's. Oh, and then you go “that’s franchising”. Well, actually not. Hey. Right, when we were on break, you name the few. Then, we talked about this at Breakfast: gym concepts, turf company. I had no idea. There's a turf company. So medial, I think of you got to have a lot of heavy equipment.

00;23;01;03 - 00;23;07;27

Cary Hall

You got to have a big warehouse total. That's not the case at all. There's a company where you don't do any of that. Talk about that for just an example.

00;23;08;00 - 00;23;33;27

Dillon Towey

Yeah. There's a there's a number of those in the, in the service space where, you know, once again, a lot of these franchise opportunities do not require the candidate or the potential franchisee to have any industry knowledge, experience in that space. And in all reality, they generally like those new franchise owners to come in without experience so they can train them on their model.

00;23;33;27 - 00;23;34;10

Dillon Towey

The right.

00;23;34;10 - 00;23;34;22

Cary Hall

Way.

00;23;34;24 - 00;24;10;21

Dillon Towey

The right way. Yeah. And and so everything everything is, you know, teachable, trainable. But you know, for an example, you know, the trash can cleaning franchise opportunities, the window washing, corporate, commercial, excuse me, and residential. Landscaping. But you do think about a lot of those. Do you think the heavy equipment, a number of these opportunities actually are subcontractor models where, you know, as a franchise owner, you don't have 4 or 5, six, seven, ten employees.

00;24;10;21 - 00;24;29;24

Dillon Towey

You're actually subbing out the installs or the, the manual labor. And so you're not. Having to employee, all those folks, whether you have jobs or not, right. So there's just a few of those things and racking up hundreds of thousands of dollars of equipment.

00;24;30;01 - 00;24;43;25

Cary Hall

Yeah. So buying big trucks, forklifts, those machines, they lay sod with me. I got an idea what all this stuff must cost versus being able to sub it out. And you're really what you're doing is you're kind of the middleman between the.

00;24;43;25 - 00;24;45;07

Dillon Towey

They're the sales and marketing it.

00;24;45;09 - 00;25;04;01

Cary Hall

Yeah. Yeah, yeah. That's it. Okay. And then and then does that go back to am I good at sales. Can I be good at sales. Am I good at networking. Can I go meet with homebuilders. Yeah they're going to have a need for this and see if I can get their business or go out and do individual homes that are remodeling whatever the case may be.

00;25;04;01 - 00;25;23;19

Cary Hall

But you have to learn all that. Yeah. Yeah. So you touched on this is funny because I told you guys this on the break, so trash can cleaning, who would ever hire somebody to clean trash cans? Well, I live out in a suburb in the country, and there's a company called Clean Cans. And I have these giant plastic trash cans that the big trucks come by.

00;25;23;19 - 00;25;40;27

Cary Hall

And for everybody in suburb knows what they are, and they pick the thing up. They dump it. Well, in the summer, sitting in your garage full of trash, they stink. Yup, yup. And when you don't wash them or you don't clean them, it gets worse. Along comes this company one day and they drop a flier at my front door called Clean Can.

00;25;40;27 - 00;25;57;14

Cary Hall

And I'm like, oh my God, they're going to clean up my cans. I signed up the day they called, the day they gave it to me. I'm like, all over this, okay? But I didn't even know they existed. Right? That inquires. I don't know how many of these they had. They had a truck. They had one guy in a truck that was specially equipped.

00;25;57;19 - 00;26;13;20

Cary Hall

It picked up the can it washed the can it put the can back. Deodorized the can then put the can back. Well, that's a pretty simple business. Yeah, but who even knew that existed? Do you know what I mean? So I mean, now they're trying to figure out what they want to do, and you're introducing them to concepts they didn't even know were out there.

00;26;13;27 - 00;26;24;18

Cary Hall

Like the Dunkin Donuts people didn't exactly do donuts. Yeah, I didn't do the childcare business. Yeah. So talk a little bit about, you know, they don't know what they don't know type of thing.

00;26;24;21 - 00;26;40;29

Luke Towey

Yeah. I mean, I compare it to, you know, you know, if you want to go make investments in something, you're probably not going to go out and ChatGPT it. Or if you want to go get your taxes done, you're not going to go out and try to figure it out on your own. So we think they're making this huge investment into their future, right.

00;26;40;29 - 00;26;59;02

Luke Towey

And so why not hire someone like us to help consult and help guide them through the process? Since we've done it before, right before they make a huge, huge investment into something and they don't know all the facts. They don't know what they don't know. They don't know the questions to ask. Right. And so at the end of the day, it's their decision.

00;26;59;02 - 00;27;07;21

Luke Towey

Right? But we're just guiding them through the process. And so they make a good decision on their future. Right. Like we've seen too many things in the bookkeeping side where it didn’t go right.

00;27;07;21 - 00;27;13;08

Cary Hall

Where you got 500 franchisees that you're currently working with. You probably seen about everything that's out there to see. Yep.

00;27;13;10 - 00;27;29;03

Luke Towey

Yep. And so we don't we don't like seeing that. And so and we don't think that it has to be that way. Right. I mean there's always been small business. There's always that chance that it doesn't go well. But yeah, we feel like we can really reduce their risk when they're making these investments. So.

00;27;29;07 - 00;27;47;10

Dillon Towey

Yeah. And to piggyback on that, you know, we, we, we work with these folks, but that whether somebody goes online Googles, ChatGPT, and gets into a franchise opportunity or they would hire us, to help them go through that process, that discovery process, there's no cost to them, for our search.

00;27;47;11 - 00;27;54;12

Cary Hall

Okay. I didn't know that. So that's a big deal. You're not charging them for the service even though they're coming to you brand new. They don't even know what they want to get into.

00;27;54;13 - 00;28;07;21

Dillon Towey

That's correct. That's correct. And so we would, we get a, a kind of a finder's, fee, if you will, from a franchise brand. Yeah. That they would, become owner or franchisee in.

00;28;07;21 - 00;28;09;21

Cary Hall

And and you're agnostic on the brand.

00;28;09;25 - 00;28;14;27

Luke Towey

Yeah. We can go anywhere, and they're not going to get a better deal if they go directly to the brand. Oh, no, they're not franchisees.

00;28;15;03 - 00;28;15;23

Cary Hall

Because.

00;28;15;26 - 00;28;17;18

Luke Towey

Franchise fee is going to be the same, right?

00;28;17;19 - 00;28;17;25

Cary Hall

Yeah.

00;28;17;26 - 00;28;23;01

Luke Towey

Just probably a little less educated on, you know, what they're getting into.

00;28;23;01 - 00;28;51;08

Dillon Towey

And well, it's our job to show them the good, the bad and the ugly of every opportunity. And then they can, you know, we can work with them to make a decision. That's the other thing about all the brands. We would we would, show a candidate is, you know, not only are we making sure that the business model and the franchise opportunity is healthy, but we're also, all these brands are vetted making sure that their leadership team, their founders are the right people and good people because you can't have a good brand if you're lacking one of those things.

00;28;51;09 - 00;29;09;00

Cary Hall

And that's that's critical. We come back from the break. We're going to talk about one other aspect to this is kind of funny because it came up, actually, in that Teams meeting that Luke and I had with, their folks on health care, I'm leaving corporate now, and I'm going to the franchise world, but oh Lord, I forgot about the health care piece.

00;29;09;00 - 00;29;27;23

Cary Hall

How am I going to get health insurance benefits? How am I going to get any benefits? Okay, we're going to talk about that piece. We come back in the break if you want information. Fascinating stuff. Right? I mean, they really know what they're talking about. The website FranchiseResourceLLC.com We'll be right back after the break.

00;29;27;23 - 00;29;43;07

Cary Hall

You're listening to America's Healthcare Advocate Broadcasting here on the HIA Radio Network. Coast to Coast Cross, USA. We got one more. Don't go anywhere.

00;29;43;10 - 00;30;02;04

Cary Hall

Welcome back. You're listening to America's Healthcare Advocate show, broadcasting coast to coast across USA here on the HIA Radio Network. If you have a question or comment, the website is AmericasHealthcareAdvocate.com. If you're listening to this and you think, you know, we're really thinking about doing this, we want to get out of the corporate world.

00;30;02;04 - 00;30;25;28

Cary Hall

We're ready to retire. We got a nice nest egg. We're willing to spend money to get into a into a franchise, give these people a call and get on the phone to go on the website, fill out the form, go to them and ask them. You just heard, you know, Luke, do this. Don't do this. They're going to make sure you're making a decision that really fits your budget and fits your needs as well, so that you don't do something that you regret a year later.

00;30;26;03 - 00;30;54;10

Cary Hall

And the website is FranchiseResourceLLC.com FranchiseResourceLLC.com. You know, it's funny. We're on this teams meeting Luke, you and I and the folks over at RPSBBDI who are doing the the enrollment work and and Sam Nigro and your other team members and you give this story about this... Talk about the lady. This is 30 minutes after you put the email out about GigCare, which is a benefits program that you're offering through your company.

00;30;54;12 - 00;31;00;16

Cary Hall

It's a Detego product for 1099 employees. Just talk about how that came about. Because I thought that was fascinating. Yeah.

00;31;00;16 - 00;31;18;09

Luke Towey

I mean, and it was a real opportunity like in the franchise space. But yeah, we sent out an email to our clients, and she happened to be a franchisee that used our services for the bookkeeping in accounting. But she's also, you know, on the franchisor side and does some franchise consulting as well and has clients that are getting into this area.

00;31;18;09 - 00;31;37;06

Luke Towey

And she immediately responded and said, you know, that's one of the huge objections that people have when they're trying to make the jump from corporate America is, all the security blanket, that they have working at corporate America. And then now it's like, okay, I gotta go out on my own. But then I also got to think about health care benefits, right.

00;31;37;07 - 00;31;44;17

Luke Towey

So what does that cost you? And that's not something that the franchise owners talk about in their pro forma and their FDD.

00;31;44;18 - 00;31;45;22

Cary Hall

They don't want any part of it. Right?

00;31;45;22 - 00;31;53;08

Luke Towey

Like it's not like, hey, you might have to spend extra money on health care. They're just assuming that you know that and you're going to take care of that on your own.

00;31;53;08 - 00;32;02;26

Luke Towey

But first, for people, that's a real that's a real challenge and a real, potential hurdle to get over to make that jump into owning their own business.

00;32;02;26 - 00;32;26;26

Cary Hall

And so I'll tell you, as a 30 year, recovering broker, if you will. Okay, that, the franchisors go out of their way to make sure they don't say anything about health insurance. I'll tell you why. Because the government has in a lot, especially like in California and a lot of the of the, of the blue states, like we call them the people's republics.

00;32;26;28 - 00;32;58;16

Cary Hall

They have tried through legislation to force franchisors and franchisees into buying health insurance off of their platforms, making the franchisor responsible for the health insurance piece, and they run from it. I'll give you a classic example. Our CEO owned Mathnasiums. Rich Haldeman. And one of the reasons that we, he and I started our company, Detego, which offers the GigCare product, was because the people that owned Mathnasium out of California ran away so fast.

00;32;58;16 - 00;33;21;22

Cary Hall

When you mentioned health care, they didn’t want any part of that, okay. They were terrified of it. Yeah. So that's really an interesting comment. Okay. So Dillon, they don't know that they're going to leave now. They think, okay, well I got I've got Cobra for 12 months, 14 months, 16 months, whatever it is. Well here's a little newsflash. Now you're paying your part of that premium, which is, I don't know, maybe six, seven, $800 a month.

00;33;21;25 - 00;33;45;00

Cary Hall

You're also paying the employer's part, which is another eight, nine, 11, $1200 if the employer is doing more than 50%. Oh, and on top of that, you get another 2%. So now your health insurance bill went from 6, $800 a month down to $1800, $2200, $3000 a month. And I'm talking about reality here. The people that that have that have gone through this and come to us on the GigCare side.

00;33;45;00 - 00;33;52;22

Cary Hall

So talk a little bit about that piece of the hurdle they don't have, because the franchisor, as Luke just said, they don't talk about this, right? I don't want any part of this.

00;33;52;23 - 00;34;13;04

Dillon Towey

Well, yeah. And it's that that's an expense, right? That, just wasn't budgeted for. And that's for a lot of people, out of sight, out of mind right their company that they worked for, corporate was covering such a large portion. A lot of people don't know the behind the scenes of, of health care and health insurance.

00;34;13;07 - 00;34;37;13

Dillon Towey

And so, you know, that's a that's a big obligation financially to take on yourself, as a small business owner. Right. You know, you got a number of things you're juggling trying to make, get a business off the ground, and then now you're also tasked with, you know, coming up with that extra, you know, $1500, $2000, $2500 to provide health coverage for your family.

00;34;37;18 - 00;35;10;09

Cary Hall

I mean, 25, $30,000 a year that you didn't anticipate. You know, you're like, I got Cobra man for 12 months. We'll deal with this down the road, or I got Cobra for 14 months, will deal just down the road. Duh. Go take a look at what's out on the individual health insurance market. Go look at the ACA plans that are out there with, you know, 13,000, 16,000, $17,000 out of pocket, cost shifting over, you know, where you're paying for MRI, Cat scans out of pocket.

00;35;10;09 - 00;35;37;10

Cary Hall

The whole nine yards are up against the deductible. And you got a narrow network where, the health insurance carrier is only contracting with certain hospitals because the hospital is making such a small margin. They want volume, so they lock out all the other hospitals. Now becomes a losing proposition. That great plan that you had when you left Amazon, when you left Apple or when you left whatever the big company was, isn’t so great anymore?

00;35;37;12 - 00;35;37;23

Cary Hall

No.

00;35;37;25 - 00;35;53;28

Luke Towey

And like you said, the coverage, people don't, want to have to change their primary care physician. They don't want to change the places that they have been going for years. Right. Just because now they're paying for a more expensive plan, and maybe they don't even have the same network. And so that's, that's a tough thing for people.

00;35;53;28 - 00;36;08;04

Cary Hall

So talk a little about you guys are offering this now. You're like, you got existing franchisees that are signing up for this. And then like the lady that's a franchisor, comes to you. So this is obviously turning out to be something that's pretty popular.

00;36;08;04 - 00;36;26;24

Luke Towey

With your folks. Yeah. I mean, we you know, Sam was on last segment. He was my broker from Omaha and he is really good. And we were part of the ACA plan previously. And obviously that changed where the cost and the networks and everything were not going to be beneficial. And he mentioned, oh, well, I got this new thing called GigCare.

00;36;26;24 - 00;36;42;24

Luke Towey

And I was like, well, let's check it out. And we ended up signing up for it personally. And I was like, you know, this is great for us. But we have a ton of clients out here on the bookkeeping and accounting side and on the consulting side, and just in the franchise industry in general, that can really, really benefit from this.

00;36;42;24 - 00;36;52;23

Luke Towey

Like it's a huge opportunity. So, I think over time we kept talking to Sam about it and he's like, I think you're right. I think this is a huge opportunity.

00;36;52;25 - 00;37;07;08

Cary Hall

Yeah, it really opened the door for us and Detego, this is one of those things where, again, we didn't realize that there was this kind of a big opportunity out there. And this Luke and Dillon and Sam kind of opened the door for us on this. We're very happy to be able to have it.

00;37;07;10 - 00;37;26;18

Cary Hall

Again, both of you, thank you for coming in here. They drove all the way up here from Omaha to do the show today. And I really appreciate both you being here. I thank you all for valuable insight. I really urge you, you know what? I do these kind of shows, there's a reason for this. Okay? You know, no, this isn't necessarily about health care, but it is about, your health in terms of your financial health.

00;37;26;18 - 00;37;39;23

Cary Hall

If you get into one of these things and you dump your life savings in a huge chunk of it and it doesn't work out, that's not a very good situation. Or you find yourself in a desperate situation where you're trying to figure out, how do I get out of it now? You want to learn all that before you do this?

00;37;39;23 - 00;37;57;16

Cary Hall

The websites FranchiseResourceLLC.com, FranchiseResourceLLC.com. They really know what they're talking about. They can really help you and it's not going to cost you a thing. You pick up the phone, give them a call, or fill out a form and have them speak to you. And now I leave you with this thought from Doctor Albert Einstein, the one who follows the crowd.

00;37;57;16 - 00;38;16;20

Cary Hall

They usually get no further than the crowd. The one who walks alone will likely find himself in places no one has ever been. Remember friends. It's a funny thing about life. If you refuse to accept anything but the very best, you most often get it. Thank you for listening to America's Healthcare Advocate Show, broadcasting coast to coast across USA.

00;38;16;23 - 00;38;21;22

Cary Hall

Goodbye America.

00;38;21;25 - 00;38;28;14

Unknown