What to Expect as a Franchisee with Liz Leonard

Franchising is an intriguing business model that offers entrepreneurs a shortcut to business ownership by providing a proven system and brand support. In this insightful episode of "Keep What You Earn," host Shannon engages in an in-depth discussion with renowned franchise consultant Liz Leonard about the challenges, opportunities, and exit strategies for franchisees. Liz, the author of "Franchise Fastpass," provides invaluable insights into the franchise industry, shedding light on the complexities that potential and existing franchisees may encounter.

The conversation kicks off with Shannon discussing the common misconception that franchising is an effortless way to run a business. Liz explains that while the support and network of fellow franchisees are beneficial, franchise ownership is not without its challenges. She highlights the need for adequate working capital, smart delegation of tasks, and a realistic assessment of one's skill set. Liz emphasizes the importance of building a competent team and the willingness to seek mentorship and support from experienced franchisees.

The conversation then pivots to the support provided by franchisors, particularly in terms of financial aspects. Liz explains that some franchise systems offer a "done for you" approach, which includes internal systems and resources, such as digital marketing and accounting. She also mentions the significance of reviewing the franchise agreement and understanding the vendors available within the franchise system.

Shannon probes Liz about the ongoing requirements for franchisees, including royalty structures and additional costs. Liz elucidates that most franchises operate with a standard royalty fee, often a percentage of sales, with additional contributions to a National Brand Advertising Fund. She stresses the necessity of understanding the financial obligations and additional costs, such as training fees and conference attendance, which may not be explicitly outlined in the initial agreement.

The conversation delves into the broader implications of franchise ownership, including the opportunity for entrepreneurial learning and the potential for a successful exit. Liz discusses the value of brand recognition in facilitating a smooth exit from the franchise, emphasizing the role of motivation and determination in driving the success of franchisees. Acknowledging the importance of an exit strategy, Liz encourages potential franchisees to consider the long-term implications of franchise ownership and the support available for a graceful exit.

The episode closes with Liz sharing details about her book, "Franchise Fastpass," aimed at educating and guiding potential franchisees through the complexities of franchise ownership. She emphasizes the book's focus on providing a step-by-step system for evaluating businesses and includes personal stories of franchisees. Additionally, Liz extends her offer of free coaching and guidance to potential franchisees, reiterating her commitment to helping individuals make informed decisions about entrepreneurship.

This episode provides a comprehensive overview of the intricacies within the world of franchising, offering valuable insights and practical advice for aspiring entrepreneurs. Listeners are encouraged to engage with Liz's book and explore the resources she offers, harnessing the episode's wealth of knowledge to navigate their franchising journey effectively.

In conclusion, "Keep What You Earn" provides a platform for entrepreneurs to gain critical insights and guidance from industry experts, empowering them to make informed decisions and grow their businesses with confidence.

What you'll hear in this episode:

04:07 Franchise systems offer benefits and conveniences.
07:04 Exploring royalty and franchise structures for success.
12:12 Franchise model offers easier entry to brand.
13:17 Understanding McDonald's operations, leverage for franchise owners.
18:56 Educational book promotes franchising and entrepreneurial success.

If you like this episode, check out:

The Power of Diverse Mastermind Groups for Comprehensive Growth

How to Break Free from the Corporate 9 to 5

Best Ways to Negotiate Business Deals

Want to learn more so you can earn more?

Download the Money Pro Matchmaker tool here

Visit keepwhatyouearn.com to dive deeper on our episodes

Visit keepwhatyouearncfo.com to work with Shannon and her team

Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ

Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/

The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.