Clay Clark | The Four Most Common Franchise Fees With Terry Powell + The Importance Of Knowing Your Numbers + The Long Road Is The Short Road

Audio Transcription

So many different times in my life, I’ve played with broken or hurt things, broken foot, broken leg, broken hand, broken arm, broken sternum, broken collarbone. I could keep going if I just thought more about bones. Why, man? Because I loved it. I loved playing the game. I was passionate about it. One of the reasons I even get encouraged at seeing all of you here, you know why I get encouraged by that is because you could be anywhere doing a lot of different things, but you chose to be here Some shows don’t need a celebrity narrator to introduce the show But this show does in a world filled with endless opportunities Why would two men who have built 13 multi-million dollar businesses? five hours per day to teach you the best practice business systems and moves that you can use. Because they believe in you. And they have a lot of time on their hands. This started from the bottom, now they’re here. It’s the Thrive Time Show starring the former U.S. Small Business Administration’s Entrepreneur of the Year, Clay Clark, and the entrepreneur trapped inside an optometrist’s body. Dr. Robert Zulman. Two men, eight kids, co-created by two different women. Thirteen multi-million dollar businesses. We started from the bottom, now we’re here. We started from the bottom, and we’ll show you how to get here. Started from the bottom, now we’re here. We started from the bottom, now we’re here. We started from the bottom, and now we’re at the top Teaching you the systems to get what we got Colton Dixon’s on the hoops, I break down the books Z’s bringing some wisdom and the good looks As a father of five, that’s why I’m alive So if you see my wife and kids, please tell them hi It’s the CNC, up on your radio And now, 3, 2, 1, here we go! Started from the bottom, now we’re here. We started from the bottom, let me show you how to get here. Started from the bottom, now we’re here. We started from the bottom, now we’re here. We started from the bottom, now we’re here. We started from the bottom, let me show you how to get here. Started from the bottom, now we’re here. We started from the bottom, now we’re here. Now we’re here. Terry Powell, how are you, my friend? Good, Clay. Great to be here. Hey, today we are talking about franchising 101 and the four most common franchise fees. I think a lot of people buy or think about buying a franchise. They hear somebody, they Google search it, someone says, yeah, well the fees will kill you. Or there’s always negativity about anything. But the franchise fees are something that there’s a lot of misinformation about. So today we’re really gonna dive into these fees. But before we do, I want to clarify I’ve heard at least almost a half-dozen people that keep referring to you as the godfather of franchising. You don’t look old enough to be the godfather, but how did you get this title or how long have you been doing this my friend? Actually a long time. I’ve been doing this for 30 years and back in the day when we started this there really wasn’t many companies that provided the type of coaching and Franchise services that we do so as being on the forefront of that in the early stages That’s really how the the title sort of kind of came about Well, we’re gonna go ahead and tackle these four kinds of franchise fees like I like it like an all-pro linebacker really. Let me just knock it out here. So Terry, a franchise fee is the upfront fee charged when you purchase a business. It’s basically the amount of money you pay in order to secure the rights to work with the brand for a given period of time. Terry, I’ve heard many franchisors over the years say that these fees are not really a profit source for them. And originally I thought, come on, you’re charging a lot of money here. You got to be making some money, but rather the franchisors have said these just kind of cover the costs Of the infrastructure needed to support franchisees and to get them going Is this generally the case from your experience or what? What what do these fees go to the cover here? It’s always the case and what we don’t take into consideration is the franchise or has to make that investment in Advance and we’re talking hundreds of thousands of dollars just to be able to offer the very first franchise not knowing whether anyone will actually You know invest in it So they’re investing hundreds of thousands of dollars to get to that point and now they start charging fees a franchise fee of twenty five $35,000 they’re really looking to recover that and to bridge the first stage of that Relationship when the franchisees not generating that many dollars in the first few months and there’s no royalties coming in, that’s designed to recover and bridge that gap to royalty stream. And when you buy a franchise, there’s this thing called the franchise disclosure document? FDD. FDD. And in this document, it’s very transparent. You have to have this document before you’re allowed to buy a franchise. It’s a federally regulated process. But you’re going to know what these fees are. You’re not going to be blindsided by the fees, right? Yeah, there’s no way that you can enter into a franchise relationship with not having been disclosed all of those. But sometimes they’ll break these fees up into different line items. Maybe. You might have one called the territory fee or the training fee. What are the kinds of fees that are typical so I know that I’m not getting bogus charges if I’m looking through this FDD or something? The most common are the franchise fee and the ongoing royalty. And then there’ll be some other subsets of that. Typically there’ll be some sort of a brand building fee. In some cases they’ll refer to it as an advertising fee, depending on what they’re using it for. But typically it’s related to a commitment that you make, each franchisee makes, to a fund that is used to build the brand that everybody’s invested in. Okay. And typically you have to pay these kind of fees to get in the game, so to speak, or to get into the club. I mean, you can’t just open up a franchise. You have to pay some of these fees to get going. And now here’s the fee structure number one. This is royalties. From a definition standpoint, royalties are the monthly or weekly payments that the franchisees pay to the franchisor for the life of the franchise agreement. Terry, explain to me what these fees are typically used for by the franchisor and how it happens? Yeah, that’s a great question because the ongoing royalty is really the essence of why companies decide to franchise. That’s really how they become profitable to get a return on their investment. So it really is, because it’s an interdependent relationship, it’s crucial to understand that the royalty is the key because the franchisor is in many cases more dedicated to making sure that you’re profitable and covering your expenses and managing all the elements of the business so that you can be profitable because then they get to take a small piece of that. That’s really how they build return on their investment. I don’t want to skim over this without the thrivers watching this really getting this because I think that I used to see it incorrectly and I think that my ignorance of this area, it causes you to kind of misjudge or you almost see opportunities incorrectly. But they’re not making money off of the initial franchise fee. Their money is made off the royalty, right? So they want you to be successful. So this is how they make money, is off this fee. I’ve had many a client say, you know, I really would like to do more than one unit, but I’m concerned about not being there watching the cash register every day. So I always ask the question, how important do you think it is that the franchisors develop systems and controls to watch that cash register for you? Because if it’s not being watched, they’re not going to get their share of it. So there’s a lot of elements that tie into that success. What’s the average royalty percentage of gross sales that I should expect to pay to the franchisor if I decide to go out there and buy a franchise? It’ll range typically a low of about 5% and can be a high of 15 percent depending on what the franchise is providing in addition related to that royalty. So five or 15 percent is sort of that and again some businesses it’s higher some it’s lower so no matter what kind of franchise you’re looking at buying or which one you maybe own five to fifteen percent tends to be sort of that average. And at one point 7-Eleven was charging a 75 percent royalty and people said how could that be? But they were also providing all the elements that that business owner needed, including their covered their rent. It actually covered the cost of goods for what they purchased. Everything was tied together for them. And all they needed to do was share 75% of their revenues and the other 25% stayed with them. Now that’s a exception to the rule. On behalf of the common man watching this and on behalf of myself, I understand that there’s essentially two different types of royalties out there. You’ve got a fixed, it’s basically a percent based or there’s a fixed royalty. Can you walk me through what a percent-based royalty is or how that works? The percent base is what we’re just describing is that based on your monthly typically your monthly revenues, you will submit a royalty payment to the franchise based on the license agreement. If it’s 5% you do $100,000. Obviously you’re going to calculate that and it’s going to be due to the franchisor. Typically on a monthly basis. Some franchisors require it to be submitted weekly, electronically. More of those are happening. Now what is a fixed royalty? Some franchisors just charge you a flat rate monthly as your royalty regardless of how much business you do. I can see how that can sort of motivate you to get serious and start selling some stuff if you have a fixed monthly royalty you’re paying, right? Yeah, it can be beneficial. And there are a few franchisors that find that that’s the best way to, in their particular industry, to operate their relationship around royalties. In your mind, which one’s more common? The fixed or the percent? The percentage is by far more common. Now I’ve seen in many cases within the franchising world where the amount is reduced. Take an example, like maybe your first 100,000 of sales is 5%, but then your next 100,000 is 3%. Do you see that a lot or is that common? It’s fairly common. Even in our own companies, our franchises, we do a scale where we incentivize them to do more business and they pay a lower royalty percentage as a result of that. So the fabulous fee structure number two that I want to dive into, we talked about just a little bit there, is this whole fixed royalty. So the fixed royalty thing, I want to get into the ins and outs of this because I think a lot of people who maybe are looking into a franchise that has one, they may think this is a bad deal, or maybe some people who own one may think it’s a bad deal. What is the benefit of having a fixed royalty for the franchisor? For the franchisor, it’s predictability. And also incentivizing. It has a motivational and incentivized aspect to have franchisees actually aspire to grow to a higher level than they might normally because it’ll be a reduced expense for them. In a percentage royalty, the more they do, the more they pay. So there’s benefits to the franchisor to fix that. It has a nice relationship aspect to it. The downside is in the early stages when a franchisee’s just coming on board, they sometimes are reluctant about that commitment because they’re not sure what their volume’s gonna be. What about from the franchisee perspective? How is a fixed royalty maybe a benefit to them or how could it be perceived as a bad thing? Yeah, predictability. And the idea that in many cases, franchisees that are more successful, I mean, they’re leveraging the system more, doing more volume, actually require less support and help from the franchisor. So having a fix can also help you understand that. I heard this commentary about four or five months ago in kind of preparation to interviewing you. You know, my antenna goes up. I’m thinking, OK, we’re going to interview the godfather of franchising. So I’m kind of mentally last few months, you know, kind of thinking about it. And I talked to this guy and he was explaining to me that he has found a franchise that he loves because there’s no ongoing franchise fee. And so I’m thinking, well, if the franchisor doesn’t make any money by selling a franchise, really, that doesn’t make sense. Have you heard about these kinds of things? Is this, are people really doing this? It’s not that common, but they’re out there. And typically the way that works is rather than charging you a royalty, they have a relationship that we spoke about earlier about where they require you to purchase certain things. So the franchisor is bringing certain things to that formula that the franchisee is acquiring or purchasing. That is enough of a relationship commitment that there’s not an additional royalty needed on top of that. Let’s pretend for a second, this is an example, let’s say I have a landscaping service that’s a franchise, it doesn’t have a franchise fee. Maybe I say you have to buy lawn chemicals from me. And then on every chemical that I have to, that you have to buy from me, I maybe have a two times markup. So because you keep buying a ton of sod and chemicals and whatever, I make enough margin on the products you’re required to buy that it’s sort of like a fee without it being a fee? Yeah, it’s a replace of the royalty percentage, but in the example of that, the good news is that whatever the franchise order is requiring you to purchase, they have to disclose what their markup is. So you likely would not ever see a markup of two times, but they’ll give a fair markup which would be the equivalent of a royalty shrink. I kind of look at this as like there are states that charge no income tax, but they usually have some intense property tax And so you’re usually gonna pay tax. I mean, there’s no like tax-free I mean can put in franchising is the the company if they’re gonna offer you support training systems Growth branding they’re gonna have to make money somehow and they’re also gonna leverage their buying power to help you save Okay So yes They’re in business as all businesses need to be for results and those results are return on investment. Now we’re in the fabulous fee structure number three, the National Advertisement Fund or the advertising contribution fee. The advertisement contribution is a stated amount of money that the franchisee gives the franchisor on a regular basis for the purposes of advertising the brand. Terry, is this just another source of advertising for those franchisors or what is this all about? Well, the advertising is not for the franchisor directly. The advertising is designed to benefit the franchisee. In fact, those funds that they collect are actually kept separate from their audited business funds and they’re audited separately. So they have a lot of restrictions of the way they can be used and how they need to be accounted for. So they’re investing that money. The franchisor is collecting that money and investing it for the benefit of the franchisee to drive business and brand awareness for that collective group of franchisees. Let me see if I can get an example if I’m getting it right here. Every time I turn on the radio, I go to ESPN, I listen to a lot of ESPN on the way to work. It’s nice shallow thought stuff, you know, kind of clears my mind while I’m driving. And I’ll listen to Mike and Mike a lot. And they’ll have these subway commercials that are always on. Are all the franchisees throughout the country paying a little bit of money that goes towards buying these advertisements? Is that kind of what we’re talking about? Absolutely. Or when you turn your TV on and there’s a Burger King or McDonald’s TV ad, that came from a byproduct of all the franchisees contributing a small percentage so that everybody can benefit on a large scale. And that has to be powerful. I mean, I don’t know anybody who doesn’t know what a subway is. I mean, it has to be powerful, right? Well, take a look at it from a brand that’s not on national TV or is not a brand name that’s highly recognizable. And you’re just growing a brand. In order for everybody to contribute so that everybody can benefit, we call it the rising tide raises all ships. You may not be on TV or even radio yet, but the ways that franchisor will invest that to get brand awareness and to bring potential clients or customers to your business is very beneficial. Now we’re moving on to the fabulous fee structure number four. I don’t even know if this is necessarily a fee. I might even be misclassifying it. But it’s kind of like the fourth thing that you’re gonna have to pay a lot of times if you own a franchise. There is this advertising commitment. And this is the amount of money that the franchisor requires the franchisee to spend on local market advertising for the business. And as I was reading some FDDs from different franchises, I discovered that a lot of them say, you have to spend $2,000 a month on some kind of advertising, or they put a minimum. Why would a franchisor impose a minimum amount of advertising that I have to spend as a franchisee? Great question. The reason they do that is because they know from the success of their business model what it takes in order to deliver the type of business. So if I’m projecting to do $300,000 in volume, the franchisor knows what you need to invest in ahead of that each month in order to have that many customers or clients come to that business to achieve the $300,000. So they want franchisees to understand that marketing and advertising and promoting that business is the foundation of any future success. And they want them to be clear that this is not highly recommended or you know negotiable that this is the basis that you’re going to commit to to grow that business. I want to give an example here years ago I worked with a business that was in the medical field and the guy opened his doors and he looked at the phone and he was kind of waiting for it to ring. I mean I’m not really sure exactly what his theory was but I went in to meet him in his office and he was there and it was quiet, no customers were coming in. And so he kept waiting. And eventually I explained to him, I said, I know you’re looking to hire me as a consultant and I don’t mean it all to be, I don’t wanna come across like I’m talking down to you, but let’s just look at the law of cause and effect. What cause are we doing to create some kind of effect? What are we doing to create customers? And he says, well, I don’t believe in advertising. And I wanted to slap him, but professionally speaking, you can’t do that kind of thing. So I couldn’t slap myself either. So I just kind of, like, so you believe that if you just are out there long enough that you’ll get business? And he says, well, I’m a word-of-mouth guy. And I said, okay. And it was just sort of that mindset where you’re not going to advertise, but you’re going to wait for the phone to ring, and you believe in word of mouth. I think a lot of people who buy a franchise or any kind of business, we unfortunately begin to think that my phone should ring just because I’m in business. And I like this. I really like this. As a business consultant, I like this minimum advertisement amount because it forces your phone to ring. And you have to advertise in some capacity. Can you walk me through how important you think this kind of agreement is for a lot of businesses? It’s really very important because most franchisees left up to their own mindset would follow somewhat of the example you just described. And we’ve seen others where we provide a press release, regional and local press releases, on a monthly basis for our franchisees. We’ve actually had franchisees who said, I’m not going to let you do any press releases for me because I’m just getting started. I’ll wait until I’m successful and then we’ll do press releases. And that sounds like a reasonable approach. Or they’ll hold back and say, well, I’m not going to spend any more money on marketing until I see what the results are. And that’s obviously not a strategy. And I want to go back to the very core as we wrap up these four to make sure that we’re 100% clear on this. The franchisor is making most of their money, almost all their money, off of the royalties. A percentage of your business. And if you have no business, a small percentage or a large percentage of zero is still zero. And so they’re trying to push you to grow in a successful way, right? I mean, at the end of the day, that’s why these fees exist. I wouldn’t necessarily describe it as pushing. They’re really looking to make sure that you have your eyes wide open, you understand what your commitment needs to be to that interdependent relationship. They’re going to do their part to invest it properly. You’re going to do your part to commit that you’ll do that because they understand that if they bring you along on that type of route right from the very beginning, there’s going to be less issues about not having results. And just a clarifier here, you’re saying it’s definitely not pushing. It’s more of like a coaching and a mentoring. It’s not a pushing. It’s just saying we’re encouraging you strongly to grow quickly. Yeah. A franchisor doesn’t work for the franchisee, nor does a franchisee work for the franchisor. They have this interdependent relationship that they agree that they’re going to both do their part and share from that. Now, the royalty piece and ongoing fees like advertising and so forth, many people will say, well, that is not going to allow me to be as profitable as I might be if I just did this on my own. There’s all types of data and examples to show that that’s just the opposite. Those franchise outlets, even with those royalties and brand building investments and so forth, are far more successful financially than those that don’t have that format. In closing, I want to bring this up. If you buy a franchise, your rate of success is tremendously higher than if you’re going out there as an independent business owner. And you can look up whatever statistics you want, but the data is out there. And it shows that you have a tremendously higher likelihood of success as a franchisee as you do as an independent business owner. And that’s really why I get excited about this whole business model. And, Terry, I appreciate you being here and clarifying about these fees and all these costs, what they mean, and what they’re going towards. So thank you so much. Thanks, Frank. Appreciate it. Next thing we talk about is knowing your numbers. And knowing your numbers is a weird thing because most businesses don’t know their numbers. So what we’re going to do is, for the sake of your privacy and on behalf of just, you know, we want to make sure we’re not sharing your numbers with the world. But we’re going to say, as far as knowing your numbers, let’s say that you want to get to $10,000 of profit per week. And in the DJ business, if I did your wedding, I would make $167 of profit per wedding after all expenses, bills paid. If I come in and I see you, and again I’m coming up with this goal of $10,000 per week, but if I see you, you diagnose me and I buy glasses from you or contacts and it’s a win-win value exchange, what is the profit that you could make per customer that you think you could do per customer. Including all expenses or just the cost of goods? Really what we’re going to do is we’re going to just say right now after the cost of goods, the cost of labor, what we’re going to call the variable cost per patient, how much is a profit can be made per patient? On average about $300. $300. Yeah. Okay. Now the problem, so $300 profit, I’m going to say after variable costs. Now the problem is that people go, well he’s just killing it, he’s making tons of money. Well, let’s talk about it. Medical school wasn’t free, right? Then you have an office, then you have a lease, and you have all that. So how many three hundreds do you have to do a month just to break even? Right around 50. 50 just to break even. Yep. OK, so you have 50 equals break even. How many days a week are you open? Five. OK, so let’s get into this. And so I’m going to take out my super calculator here and see if I can figure it out for you. So if we have 50 to break even, and you have six days or five days a week, you see patients. Average month, you see patients 20 days a month probably. So we need to see 2.5 patients a day per day equals break even. Do you agree with that? Does that sound pretty accurate? So how many do we need to see to produce the profit we need to get to, in your mind? If we’re looking for $10,000 of profit, I mean, it’s probably at least about five or probably more than that, actually, probably close to 10 a day. And I know off the top of our head it’s going to be hard. So what I’m going to do is I’m going to say here is 2.5 is just breakeven. Now we’ve got to get to 10,000. So 10,000 per week, and it’s $300 of profits. I’m going to take the 10,000, and I’m going to divide that by 10,000 divided by our $300 of profit. I’m going to go, well, that’s 33.3. So 10,000 divided by. And then we’ve got to divide that by five days, right? So divided by 5. So that’s 6.6 per day. But you’ve got to add on the tax of breaking even of 2.5, right? So you say plus 2.5. Bam. So it’s 9.1 patients per day equals 10,000 profit per week. You think the math works? Sounds good. So what I want to do, and I’m going to have our program observer type this up here for you, because this is super big for me. You make sure you leave with this stuff. Yeah. And you’ll type this up. But we need to know, you and your wife need to know, we need to know, they need to know. And you can change these numbers as it becomes whatever your actual goals are. But we need to get to 9.1 patients per day in order to achieve your financial goals. And then what’s the point? Faith, family, finances, it should all be funded by that. Right. Cool? Yep. So 9.1. So homework for you, and this is an action item, I’m going to have our program observer type this up. I need you to put that number somewhere real, or whatever the number is for you. So I’m just, I mean, you’ve got to have it. So I remember when I was building the DJ business, I was like, I have to get every single day to make a hundred thousand dollars. I had done the math. I’m like, well, 167, that’d be like, you know, five a week would not get me there. 12 a week. I would do the math. I would go, I have about 17 clients a week to hit my goal. So then you start putting that down. It becomes a mantra. You put it on the mirror. So you want to go ahead and put that somewhere you see it every day. And everything we’re doing today is really related to that. Make sense? Yeah, it does. OK. So we’ll knock this out. But again, the numbers I want our programs to jot down is 9.1 patients per day equals 10,000 hours profit per week. 2.5 patients per day equals break even. 50 patients per month equals break even. $300 profit, so we don’t forget those ideas. Because what I want to do is I want to teach you these moves that don’t cost you a lot of money to do. Thrivers all across the planet. Thrivers in Norway, Thrivers in Egypt, Thrivers in Singapore. We have Thrivers in Columbia. Oh wow. Columbia. Alright. This episode, we’re going to be talking today about the long road is the short road, in particular as that pertains to the franchising business model. And we are joined with Augustine. He’s the man with the plan, the Thriver of the Month, and I’m excited to be here with you, my friend. It’s great to be here. Alright, now we are talking about this concept of, you asked the question, who are the best people to speak with who can provide guidance in accelerating my planning, particularly as it relates to building the business quickly for franchising? There are three key things that you have to do to be a franchise. One, for those of you who have watched some of the other episodes about franchising, I’m a broken record on this, but I’m not going to change, but you have to do it. One is you have to have that 30% profit. You’ve got to get to that 30% profit margin. OK, you’ve got to have it. Two, your business model has to be turnkey, meaning that it has to work without the actual owner being there. Three, you have to build this thing called the FDD. So to do all that, the number one thing you have to do is you have to focus on building a business model that operates at that 30% profit, that is turnkey, and that has the FDD. So why is the long road the short road? Because if you do not do this in the world of franchising, what will happen is you are going to sell franchises all across this wonderful country. And what happens is, is that allegedly people are starting to get on that thing called the internet. And so what happens is, is that when you sell a franchise in that FDD document, it has to disclose, it’s called the FDD, it’s called the Franchising Disclosure Document. In that document, before I’m allowed to sell you a franchise so if Jeff over here in Utah says, hey, I wanna buy a franchise, I say, sure, Jeff, I have to send him an FDD, he has to have it in his possession before he’s allowed to buy a franchise. In that franchise, it requires for me to disclose how many of my franchises have failed. And if I have had a lot of franchises that have failed, unless Jeff is mentally not there, I mean, how many of you would buy a franchise, say you want to buy a franchise and you get the FDD in the mail and it says that 100 out of the 200 have failed. How many of you would go, that sounds good, let’s do it? Almost nobody. So the long road is you’ve got to get your financial model right so that people who buy your franchise have great things to say. So let’s say that you did have a business model that’s 30% profit margin, turnkey, and has an FDD. Well, what does that mean? What that means if you do that is now the Small Business Administration is going to say you’re SBA compliant or you’re certified, meaning that anybody, including Jeff here in Utah who wants to buy a franchise from you, he can go to his local bank and say, can I get a Small Business Administration loan or an SBA loan? It’s the most common kind of small business loan. You can go to your local bank and say, can I get an SBA loan? And your banker will say, well sure, let me check. And they’ll check and they’ll go, bingo! That company that you want to buy, the franchise you want to buy is SBA compliant. Boom. Then the banker, unless he’s weird, is going to go, he’s going to look and he’s Oh, and look, on the disclosures, they’ve had zero failures. They’ve had zero franchises that have failed. That’s great. So now it’s SBA compliant at a 30% profit margin. You have great word of mouth. So what happens is, unless you’re weird, again, Jeff wants to buy a franchise, I send him an FDD when I send him the FDD the FDD includes Disclosures the number of failures I’ve had it also includes the contact info for Franchisees so anybody who’s ever bought a franchise It discloses their contact info. Yeah, so wouldn’t you want all of the people who own your franchise to have had success. But if you screwed them over and you’ve sold them something that doesn’t work, or you’ve sold them something that was half-baked or not thought through or something that’s inaccurate or has problems, guess what’s gonna happen? They’re not gonna have success. And when they don’t have success, they’re gonna tell people. So I call and say, hi, my name’s Jeff, I’m from Utah. Is this Kevin? Yeah. Kevin, hey, I understand that you bought a deli franchise a couple years ago. How’s it going? Oh, it’s terrible. They didn’t know what they were doing. They were experimenting on me. The math didn’t work. It was horrible. We had a supply chain problem. Everything didn’t work. Their marketing was bad. Their Google marketing was terrible. It just was bad. Okay, sure, I’ll go ahead and buy one. No. So that’s why the long road is the short road. So the way you’re going to build this business and just to give you a visual is you’re going to execute or do execute your business model and as you execute this business model every week you’re gonna if you view your business as like this it’s kind of moving down the road here, it’s just rolling down the road here, it’s moving. Every week, your business, it’s like a snowball, okay? And it’s working down the hill, the hill’s got a little bit of a decline here, it’s starting to go. Every week, it gets a little, it started off as a small thing, and it’s kind of weird, because you have this business idea, and eventually you’ve got to just jump off the cliff. So you, I mean, you got this business idea, right? And you jump it off the cliff boom all of a sudden now you’re in business Yeah, it’s kind of scary. Maybe you quit your job. Maybe you’ve just spent your life savings, but now you’re in business but now each week the snowballs getting bigger and Bigger and bigger as you’re adding more and more at first you just have a good product You know, but then the next month you grow and you add great marketing now you add a layer of great marketing. Now the next year, you grow and now you’ve got a layer of really, really, really cutting edge technology. You’ve got some awesome technology, scheduling technology, point of sales technology, marketing technology. Wow. Now, you’re starting to have great strength with numbers. Your financials are really solid. You’ve got the money to do it big. That’s when you want to franchise. So usually from the time that you start a business to the time you franchise it, I would recommend you give it three to four years. Now, I say this because the long road is the short road. If you take those shortcuts and you go out there and you start selling franchises before you have a good system, you will really quickly hit the wall and you can’t go back. Okay. And what’s crazy in the world of franchising, if you’ve had any failures in franchising on any other FDD you make, it has to include that. So you’re kind of like done if you’re done. Yeah. So one of the companies that I’ve worked with is a company called Oxifresh out of Denver. Okay. And Oxifresh is a franchise that was started by a guy named Jonathan Barnett. Full disclosure, I’ve done some consulting with those guys and John is a partner with me on a different business now called Elephant in the Room, which is a men’s grooming lounge that we’re in the process of franchising. Well, when John started Oxifresh, I believe in 2006, now he’s getting near 500 units. He was featured in Forbes. If you Google Oxifresh and Forbes, you’ll see his company’s growing. Well, why? Because everyone all around the country is bragging about how successful their franchise is. He did it right. He took the time. So now eight years later, he’s to this level. Okay. Where he’s just selling like one or two franchises a week. It’s awesome. Excellent. The elephant in the room, we’ve been open for three years. We’re doing really good, but we’re not ready to franchise yet. We’ve still got on that road to franchise document, we’ve still got probably another six months or a year before we’re ready to go and then we’ll start selling them. Okay. So the long road is the short road. Does that answer all your questions? It does. Awesome, my friend. Hey, big boom. Boom. Boom. Boom. JT, do you know what time it is? 410. It’s TiVo time in Tulsa, Roseland, baby. Tim TiVo is coming to Tulsa, Oklahoma during the month of Christmas, December 5th and 6th, 2024. Tim Tebow is coming to Tulsa, Oklahoma in the 2-Day Interactive Thrive Time Show Business Growth Workshop. Yes, folks, put it in your calendar this December, the month of Christmas, December 5th and 6th. Tim Tebow is coming to Tulsa, Oklahoma in the Thrive Time Show 2-Day Interactive Business Growth Workshop. We’ve been doing business conferences here since 2005. I’ve been hosting business conferences since 2005. What year were you born? 1995. Dude, I’ve been hosting business conferences since you were 10 years old. And a lot of people, you know, have followed Tim Tebow’s football career on the field and off the field. And off the field, the guy’s been just as successful as he has been on the field. Now, the big question is, JT, how does he do it? Mm, well, they’re going to have to come and find out, because I don’t know. I’m just saying, Tim Tebow is going to teach us how he organizes his day, how he organizes his life, how he’s proactive with his faith, his family, his finances. He’s going to walk us through his mindset that he brings into the gym, into business. It is going to be a blasty blast in Tulsa, Russia. Folks, I’m telling you, if you want to learn branding, you want to learn marketing, you want to learn search engine optimization, you want to learn social media marketing, that’s what we teach at the Thrive Time Show two-day interactive workshop. If you want to learn accounting, you want to learn sales systems, you want to learn how to build a linear workflow, you want to learn how to franchise your business, that is what we teach at the two-day interactive Thrive Time Show business workshop. You know, over the years we’ve had the opportunity to feature Michael Levine, the PR consultant of choice for Nike, for Prince, for Michael Jackson. The top PR consultant in the history of the planet has spoken at the Thrive Time Show workshops. We’ve had Jill Donovan, the founder of rusticcuff.com, a company that creates apparel worn by celebrities all throughout the world. Jill Donovan, the founder of rusticcuff.com, has spoken at the two-day interactive Thrive Time Show business workshops. We have the guy, we’ve had the man who’s responsible for turning around Harley Davidson, a man by the name of Ken Schmidt, he has spoken at the Thrive Time Show, two-day interactive business workshops. Folks, I’m telling you, these events are going to teach you what you need to know to start and grow a successful business. And the way we price the events, the way we do these events, is you can pay $250 for a ticket or whatever price that you can afford. Yes, we’ve designed these events to be affordable for you, and we want to see you live and in person at the two-day interactive December 5th and 6th Thrive Time Show Business Workshop. Everything that you need to succeed will be taught at the two-day interactive Thrive Time Show Business Workshop December 5th and 6th in Tulsa, Oklahoma. And the way we do these events is we teach for 30 minutes and then we open it up for a question and answer session so that wonderful people like you can have your questions answered. Yes, we teach for 30 minutes and then we open it up for a 15 minute question and answer session. It’s interactive. It’s two days. It’s in Tulsa, Oklahoma. We’ve been doing these events since 2005 and I’m telling you folks, it’s going to blow your mind. Yes, ladies and gentlemen, the Thrive Time Show two day interactive business workshop is America’s highest rated and most reviewed business workshop. See the thousands of video testimonials from real people just like you who have been able to build multi-million dollar companies. Watch those testimonials today at Thrivetimeshow.com. Simply by clicking on the testimonials button right there at Thrivetimeshow.com you’re gonna see thousands of people just like you who’ve been able to go from just surviving to thriving. Each and every day we’re gonna add more and more speakers to this all-star lineup, but I encourage everybody out there today Get those tickets today go to thrive time show calm again That’s thrive time show calm and some people might be saying well. How do I do it? I’m gonna do it, but it has it work. You just go to thrive time show calm. Let’s go there now We’re feeling the thought we’re going to thrive Again, you just go to thrive time show calm you click on the business conferences button And you click on the request tickets button right there the way I do our conferences is we tell people it’s $250 to get a ticket or whatever price that you can afford. And the reason why I do that is I grew up without money. JT, you’re in the process of building a super successful company. Did you start out with a million dollars in a bank account? No, I did not. Nope, did not get any loans, nothing like that. Did not get an inheritance from parents or anything like that. I had to work for it and I’m super grateful I came to a business conference. That’s actually how I met you, met Peter Taunton, and I met all these people. So if you’re out there today and you want to come to our workshop, again, you just got to go to thrivetimeshow.com. You might say, well, who’s speaking? We already covered that. You might say, where is it going to be? It’s going to be in Tulsa, Russell, Oklahoma. It says Tulsa, Russell. I’m really trying to rebrand Tulsa as Tulsa, Russell. I’m sort of like the Jerusalem of America. But if you type in Thrive Time Show and Jinx, you can get a sneak peek or a look at our office facility. This is what it looks like. This is where you’re headed. It’s going to be a blasty blast. You can look inside, see the facility. We’re going to have hundreds of entrepreneurs here. It is going to be packed. Now, for this particular event, folks, the seating is always limited because my facility isn’t a limitless convention center. You’re coming to my actual home office. And so it’s going to be packed. Who? You. You’re going to come. Who? You. I’m talking to you. You can get your tickets right now at ThriveTimeShow.com. And again, you can name your price. We tell people it’s $250 or whatever price you can afford. And we do have some select VIP tickets, which gives you an access to meet some of the speakers and those sorts of things. And those tickets are $500. It’s a two-day interactive business workshop, over 20 hours of business training. We’re going to give you a copy of my newest book, The Millionaire’s Guide to Becoming Sustainably Rich. You’re going to leave with a workbook. You’re going to leave with everything you need to know to start and grow a super successful company. It’s practical, it’s actionable, and it’s TiVo time right here in Tulsa, Russia. Get those tickets today at Thrivetimeshow.com. Again, that’s Thrivetimeshow.com. Hello, I’m Michael Levine, and I’m talking to you right now from the center of Hollywood, California, where I have represented over the last 35 years, 58 Academy Award winners, 34 Grammy Award winners, 43 New York Times bestsellers. I’ve represented a lot of major stars and I’ve worked with a lot of major companies. And I think I’ve learned a few things about what makes them work and what makes them not work. Now, why would a man living in Hollywood, California, in the beautiful, sunny weather of LA, come to Tulsa? Because last year I did it, and it was damn exciting. Clay Clark has put together an exceptional presentation, really life-changing, and I’m looking forward to seeing you then. I’m Michael Levine, I’ll see you in Tulsa. to do to optimize your website. We’re going to teach you how to fix your conversion rate. We’re going to teach you how to do a social media marketing campaign that works. How do you raise capital? How do you get a small business loan? We teach you everything you need to know here during a two-day, 15-hour workshop. It’s all here for you. You work every day in your business, but for two days you can scape and work on your business and build these proven systems so now you can have a successful company that will produce both the time freedom and the financial freedom that you deserve. You’re going to leave energized, motivated, but you’re also going to leave empowered. The reason why I built these workshops is because as an entrepreneur, I always wish that I had this. And because there wasn’t anything like this, I would go to these motivational seminars, no money down, real estate, Ponzi scheme, get motivated seminars, and they would never teach me anything. It was like you went there and you paid for the big chocolate Easter bunny, but inside of it, it was a hollow nothingness. And I wanted the knowledge, and they’re like, oh, but we’ll teach you the knowledge after our next workshop. And the great thing is we have nothing to upsell. At every workshop, we teach you what you need to know. There’s no one in the back of the room trying to sell you some next big get-rich-quick, walk-on-hot-coals product. It’s literally, we teach you the brass tacks, the specific stuff that you need to know to learn how to start and grow a business. I encourage you to not believe what I’m saying, and I want you to Google the Z66 auto auction. I want you to Google elephant in the room. Look at Robert Zellner and Associates. Look them up and say, are they successful because they’re geniuses, or are they successful because they have a proven system. When you do that research, you will discover that the same systems that we use in our own business can be used in your business. Come to Tulsa, book a ticket, and I guarantee you it’s going to be the best business workshop ever, and we’re going to give you your money back if you don’t love it. We’ve built this facility for you, and we’re excited to see it. And now you may be thinking, what does it actually cost to attend an in-person two-day interactive Thrive Time Show business workshop? Well, good news, the tickets are $250 or whatever price that you can afford. What? Yes, they’re $250 or whatever price you can afford. I grew up without money and I know what it’s like to live without money. So if you’re out there today and you want to attend our in-person two-day interactive business workshop, all you got to do is go to thrivetimeshow.com to request those tickets. And if you can’t afford $250, we have scholarship pricing available to make it affordable for you i learned at the academy kinks point new york octagon verbal watch what a person does not what they say good morning good morning good morning barbecue soccer is that radio show today on broadcasting uh… from phoenix arizona not scottsdale arizona their clothes but the complete different worlds. And we have a special guest today. Definition of intelligence is if you agree with me, you’re intelligent. And so this gentleman is very intelligent. I’ve done his show before also, but very seldom do you find somebody who lines up on all counts. And so Mr. Clay Clark is a friend of a good friend, Eric Trump, but we’re also talking about money, bricks, and how screwed up the world can get in a few and a half hour. So Clay Clark is a very intelligent man, and there’s so many ways we could take this thing, but I thought since you and Eric are close, Trump, what were you saying about what Donald, who is my age, and I can say or cannot say. Well, first of all, I have to honor you, sir. I want to show you what I did to one of your books here. There’s a guy named Jeremy Thorne, who was my boss at the time. I was 19 years old, working at Faith Highway. I had a job at Applebee’s, Target, and DirecTV. And he said, have you read this book, Rich Dad, Poor Dad? And I said, no. And my father, may he rest in peace, he didn’t know these financial principles. So I started reading all of your books and really devouring your books and I went from being an employee to self-employed to the business owner to the investor and I owe a lot of that to you and I just want to take a moment to tell you thank you so much for allowing me to achieve success and I’ll tell you all about Eric Trump. I just want to tell you thank you sir for changing my life. Well not only that Clay, you know thank you, but you’ve become an influencer. You know, more than anything else, you’ve evolved into an influencer where your word has more and more power. So that’s why I congratulate you on becoming. Because as you know, there’s a lot of fake influencers out there too, or bad influencers. Yeah. Anyway, I’m glad you and I agree so much, and thanks for reading my books. Yeah. That’s the greatest thrill for me today. Not thrill, but recognition is when people, young men especially, come up and say, I read your book, changed my life, I’m doing this, I’m doing this, I’m doing this. I learned at the Academy, King’s Point in New York, acta non verba, watch what a person does, not what they say. not what they say. Whoa!