What is a Franchise Discovery Day?

Audio Transcription

If you are thinking about buying a franchise, you will probably hear the phrase discovery mentioned by the franchise or who is sharing with you about the opportunity youth net. Cool could but right now I was just thinking about nonmarsupials and other, the pouches and the hall. Thank you for clarifying. And now we’ll get back to the main idea. What is the discovery here with an in wider, the kangaroo has to be through frightening the big and have that big old creative power. Does it really need to have that path? I don’t think so. Well listen here, I don’t know. And furthermore, I don’t care because we’re talking about discovery days and everything you would ever need to know about discovery day. That is cool. But I just also would like to carve out some time to discuss what failed kangaroo makes because cause that if the bad found that if a failed a bad near this, this in the water, the kangaroo sales that know that if the bed found that is the thing, the bed fair to the people at the hotel. I know about this kid. Some help, Matt. I remember we’re going to talk today about franchising one Oh one and everything you could possibly be to know about discovery. And we’re going to be interviewing Matt Klein with Huxley fresh franchise brand developer with Oxi fresh with over 400 locations throughout America. Oxi fresh franchise system and companies doing very, very well. And uh, now back to the program you have questions. America’s number one business coach has answers.q

It’s you’re brought up from Minnesota. Here’s another edition of ask clay, anything on the thrive time business coach radio show

Mr Matt Kline, always looking fine. How are things going in Denver today? My friend,

things are going great. I have a really exciting week here. We have some new people here for training, so always nice to meet the people we’ve been talking to and get them on the path to franchise ownership.

Now my understanding, I talked to a Jonathan Barnett, D a CEO and president of Oxi fresh, the founder of Oxi fresh today. And John was telling me that you have, I believe, uh, two people in town or three people in town today. For a franchise discovery day. Is this, is that correct? Am I getting it right?

We do. Yeah. So we have two groups, um, Charleston, South Carolina, and then we have an area in New Jersey, two different groups of people, a great franchise more than father son combo. And one’s a, a gentleman that sits moving forward on his own. But yeah, there, here got through the whole process of validation. Um, they’re, they’re ready to move forward and get their discovery and their training done this week.

Well, what I wanted to do on today’s shows, I wanted to really talk about validation and the discovery day one Oh one. So I wanted to kind of start with this cause I think there’s, there was initially a lot of misunderstanding about how the world of franchising, uh, works. And uh, I would like to tee off how I believe it works, Matt. And you can clarify if I’m getting something wrong or missing some details. Essentially. Uh, if I’m out there and I’m looking to, you know, create time freedom or financial freedom, I can go out there and look for a business model like an Oxi fresh that’s been proven to work. And if the system, uh, looks to be a go or I’m interested as a franchisee, I reach out to the franchisor. So in this case I’d reach out to Oxi fresh and then you guys are going to give me an overview. But sometime during this process I have to decide whether Oxi fresh is right for me and my family. And you really have to decide if Oxi fresh is right for me as the franchisee. And we would call that particular process of validation. Is that correct?

It is, yes. So I mean it is certainly, you know, both parties, right? Um, you got to find that the model that works for you and what your goals are and how that model gets you there. But we also have to make sure the individual, um, that is coming into Oxford’s fits the mold. Right? And a good example is that, you know, we’re a very technology driven company. And so, you know, if you don’t believe in technology and you don’t want to use a computer, which I’ve had this happen, that’s probably not a good fit. So that’s a very easy example, but also as expectations, reluctance, realistic expectations, those sorts of things. So we would just want to make sure that everyone’s going down the same path together.

So let’s go, let’s kind of break down some of the validation criteria here. Um, one does, does someone’s credit score it all play into this, to somebody’s credit score in ability to have access to liquid cash?

Yeah. And that can be a lot of different forms. So we don’t do like the net worth type. Our franchise investment is not high enough where it’s, you know, half a million or $2 million or whatever. So we want you to have the ability to come to the table with enough funds or you’re not underfunded. So being able to either come to the table with your own funds or being able to do like a retirement rollover or maybe a SBA loan or we’ve had people like myself who’ve done a home equity line of credit. So how we get there, um, if you’re getting a, a traditional types of business loans, the credit is going to be important. The debt to income ratio is going to be important. Um, you know, who’s all involved with the business? So absolutely credit as one of the main criteria.

So let’s get in a little bit more into this financing piece. Um, what percentage of the people that buy an Oxi fresh franchise do you think are people that are going to, you get an SBA loan? A small business administration alone?

Probably about 40%. Um, go through the SBA process. You can do an SBA or SBA express. Um, the SBA is an extremely good funding platform. You really have to have your, you know, your ducks in a row. It’s the hardest funding to get. You really need to have a good credit score. Um, you need to have all those things. But that is the best because the interest rates are extremely low because you’re a very, very qualified individual.

Okay. So the SBA would be a way to go for about 40% of people. And you mentioned a home equity line. Now, um, I know that you live in a palatial estate, you have sprawling pools. It’s a metropolis. You really have what, 47,000 square feet on the first level, Matt. So not, not most people can pull out $7 million of equity to buy an Oxi fresh like you can. So what kind of money are we talking about to get into the Oxi fresh game as it relates to, you know, pulling money out for, from a home equity from a home equity loan?

Yeah, if you were doing it just completely on the home equity line of credit, um, you want to have about 65,000, something like that. Those are also very low. Um, in terms of interest, those are good ways of doing it. Um, I’ve had people do kind of a hybrid where they’re gonna have a home equity line and put some on that, but then they also have like retirement. So we do kind of open the door and we have very, very good partners that we work with. Um, not only that we’ll show you what you qualify for, but the, the implications of taking certain types of loans out. Um, but the LOC for us worked very well. So my brother and I are business partners. That’s what we use.

Okay. So you, you but you would help somebody out there if they’re looking to buy a franchise, find the appropriate financing

[inaudible]

yeah, definitely. And I personally wouldn’t take them to that because I’m not the expert. Although I’ve taken many, many people through that process with our funding partners. They are third party funders that are specifically versed in franchising that know about that. I’m very in tune with SBA. Uh, we aren’t SBA approved franchise, which helps it just in the, in the validation of you as a person getting funding,

what does that mean? What does that mean to be FDA approved? SBA approval. What does that mean for the listeners out there?

Yeah. So that means that you know, the business that you’re going with, let’s just say Oxi fresh, we have gone through the process with the SBA to be a proved a business. So we have a good financial standing for a certain period of time where they say, yes, this business is a functioning business that should continue to grow. We’ve also been steady in terms of growth. So they look at our success rates, they look at our financial standing and they say, yes, we at the SBA approved this business, um, as a business that we believe we can do that. So in terms of what the actual individual’s going to go through, um, they don’t have to do as much in terms of like, um, if you open your own business, got it right and you didn’t SBA, you’re going to have to literally go every piece of the process through, um, you know,

okay.

Industry reporting back to them, you’re going to have to go through things like, um, proformas to a very Instagram [inaudible]. So a lot of that taken care of because the model itself is already proven. So what they’re really looking for is if you are able to be funded in that proven business. So just eliminate some of the steps cause the business model is already proven.

And I want to make sure that all the listeners out there know what the SBA is, the stands for the small business administration. And uh, back in the day 2007, Matt, I was a Oklahoma’s SBA entrepreneur of the year. And you might say, well why does the SBA recognize entrepreneurship or why? What does the SBA do? Well, the SBA is a small business administration and their job is to stimulate the economy. And over the past 20 years, according to Forbes, a little over 65% of all of the jobs in America have been created by small business owners. And most small business owners need some access to capital to start a business or to grow a business. And so the SBA is teamed up with local banks, community banks, regional banks. And what they do is if the spa, let’s say that the, your local bank lended me $100,000, the small business administration typically will guarantee somewhere between 75% and 85% of that loan. So if I defaulted on the loan, the bank’s not on the hook for all $100,000. They’re only on the hook for $15,000 or $25,000. So the interest rates lower. It’s a super move. So again, just re recap in here, maybe 40% of the people who buy an Oxi fresh are looking for an SBA loan or are typically using an SBA loan. Matt, is that correct?

That is correct. Yup.

And then home equity lines would be, what percentage approximately,

who ended up much, much smaller. That that’s, that’s less than 10%. About 80% of people that come through Oxford, she gets some form of funding.

And what percentage of you will pay just cash? Just like cash. Boom. Upfront. Here’s a check. Let’s go 20%.

Uh, less than that. A lot of people will do retirement rollovers. A lot of veterans will do, um, their rollovers because of their, uh, because their time in the service, they have a good stack of cash or that they have accrued. And they can basically, if they retire from the service, they could take that and use that to invest. That’s a pretty big one. Um, there’s, you know, for veterans there’s like [inaudible], um, things that they’re coming out with now. So bill, you know, there’s all sorts of SBAs are very, very big one. Um, home equity is a smaller one. Um, because you do need to have the equity in your home to make that a viable option. Right. Um, you know, so, you know, retirement rollovers are very, very palming. Um, some people will, you know, take money out of stock market, right? Because they’re gonna basically invest in themselves instead of the market. That can fluctuate a lot. I’ve seen that happen a lot. So, you know, you just kinda gotta put all your chips on the table and figure out what’s the best, most efficient way to fund your business. And it may be something you’re not even thinking about it yet. But that’s why it’s important to have conversations with the funding partners. Because before you ever sign anything, they’re going to just lay it all out there and you can basically make a decision on what’s best.

So again, after that initial call with Oxi fresh, then you go through this kind of validation period where Oxi fresh makes sure that you’re a good fit, you feel like you’re a good fit. And then talk to us about a discovery day. What is a discovery that re a discovery day in the world of franchising?

Yeah. So this is where you tie everything together because previous to this discovery process, and we do discovery where we fly you out to Denver and you’re going to spend at least two days with us. So there’s two of the discovery. One is you’re coming out just to validate the phone conversations, the conversations have other franchisees, um, the documents that you’ve read. So you’re basically tying everything together while you’re here to make sure there’s no red flags, right. And make sure that you get along with the people that are going to be helping you on the, on the franchise side, maintaining a good symbiotic relationship between you and the franchising company so that you begin can walk down the same road together. Um, so that discovery process is essentially the last step before you become a franchise. And it’s an in person. We’re taking you through everything.

The first day is completely office related, a backend office technology for us, our scheduling platforms and how they integrate with our individual franchisees. Um, it’s going to go through marketing on a very high level. It’s going to go through, um, the technology platform and the reporting software that we have on the back end. So that is all business, um, ownership related training and what we do the second day is all field training. So you’re going to see how boots on the ground, the customer interaction, how we mix product, how we go about our day, how we do walk through pre and post jobs, how we take payments. So when you go with the business part of it the first day and then you go with the actual doing of the jobs the second day after you’ve done all of that and you decide to move forward, that is when we would go through the maps and lock everything in. And that’s typically when people would sign to become a franchise. So that discovery process, once all that’s done, the next very step is becoming a franchise. So it’s the last step in the process.

So day number one, when we’re going over the back end of everything, who is going to be leading me? Where is it going to take place and when is it going to happen? Like what time of the day?

Sure. Yep. So we start, um, at 9:00 AM, uh, we, we this nice little restaurant by, by our office here in Lakewood, Colorado. Um, and we just kind of go through an introduction, fate, um, you, we bring our entire team. So you’re going to meet not only our, our management staff, our, our marketing department, our clinic system department, our development department, our ops department, our founder, Jonathan, or vice president Chris. Everyone is there. So we just kind of meet each other and make sure everything’s good. I’m usually have some lasts at that time. Then we go straight into the train. We go first into the technology, how that integrates to the scheduling center, which is right here. So you’re actually in a sit with our scheduling center reps as they book jobs for our franchisees across the country.

Awesome.

And see how that integrates through the technology. You’re gonna go through the next section with Aaron Hogan, who is our director of marketing. You’re gonna to do all the marketing techniques that we use, all the marketing vendors that are implemented into our franchise and how these sorts of businesses will help you grow in your local market. Is that the second piece of it? And then the afternoon is dedicated specifically to our founder and Josh, who’s our online marketing specialist and talking about Oxi fresh past, present, and future. It’s very important. Understand why we are here now, how we got to this point, what we’re currently working on as a franchise and the roadmap six months to a year down the road cause everything’s changing so much. So there needs to be a clear understanding of what we are doing for our franchisees and the responsibility of our franchisees and what they need to do when they get back home. Right? So at that point we’re not doing any heavy training at this point. We’re just showing examples of everything that we’re doing so that there’s a clear understanding for our franchisees of what they need to do. Right. Not just a flip the switch and go back home and things start coming from the sky. So it is full on. This is Oxi fresh.

How much of your discovery day do you sit together and talk about feelings and motivation and then more motivation and more inspiration and how much time is about, you know, this is the specific steps. This is the system, this is how it works. What you know, field training behind the seats as a pie chart. What percentage of it are you bouncing around beach balls and blaring Tony Robbins and say, yo, get do it. Yo can do it. You got to sign up now. I mean, what percentage of the time are you queuing up the hype music? Are you telling people there’s one availability left? Are you really laying in the pressure? What percentage of the time are you really hyping it up? Like a good MLM, like a good times share sales? What time are you really ambushing the people? What percentage of the pie chart do you devote to ambush and people with high pressure sales techniques?

Sure. So that’s that 100%

Oh really? Wow.

Well, we’re very, um, we’re very a, you’ll see we’re very laid back. True. I mean, it’s extremely important for us. Uh, we will not buy, sell a franchise or a water franchise until someone goes through this process. Um, because you just won’t, don’t know. Right. A lot of the motivation for us comes from the individual and their engagement with our home office. We’ve had people come in, don’t say a word. That’s very difficult, right? Because we can’t really understand the goal. So what we want is a very open format. We’re talking about how you specifically are going to be able to leverage the resources we have at Oxy fresh to grow your business. And it needs to be a give and take on both sides. So most of it is just laying everything out there and making sure there’s a clear understanding of what’s going to need to happen to be a successful business.

Um, and it’s also we can engage with you and understand your understanding, right? So if we need to have multiple conversations about one specific aspect, that’s not uncommon. Not everybody learns the same, but we need to know that so that we can clearly show what’s going to need to be done and how it’s gonna affect your business so that it is completely exploratory at this point. What we’re going through at a very high level, each aspect of the business and, and making sure that there is a very, very clear understanding. Because at this point, the only next thing after this is to become a franchise. So if we’re not really at an understanding now, we probably need to go back to the drawing board a little bit.

And what kind of questions do you, what are some of the most commonly asked questions during discovery day? So like today you have, I mean people in from multiple cities. What kind of questions do, do, do people typically ask when they come for a discovery day?

Okay.

Yeah. A lot of people will say, you know, for my business I want to grow, whatever the number is, I want to be this big by this point, how much do I need to spend on marketing? That’s a big one. Right? And so what we’re going to do is we’re going to go into your local market and we’re going to see who your competitors are. Because at this point, not every territory is created the same in terms of competition. Got it. Right. 17 Google reviews might get it done in one territory where 120 might get it better than another. That’s not anything that, those aren’t hurdles we can’t get over. It’s just how much effort are you spending? How much time you spending and how quickly can you get to that 121 reviews, right? So all of these things are very easily manageable as long as there’s a clear expectations of what needs to be done.

So a lot of the questions aren’t marketing. A lot of the questions aren’t support, right? When I hire someone, how do I train them? When I hire somebody or, or how do I hire someone? That’s a big one as well, right? All these things we address and show the platforms you use to effectively get these things done, whether it’s hiring, whether it’s training, whether it’s implementing marketing programs in a given level on how that actual relationship works, right? Are you guys doing it for me? Am I doing it for myself? Are we working together? So we’re going to lay out all those things. Um, and we want people to come with as many questions as possible. It’s very scary if someone comes with no questions

and how much money are you going to charge me to come to this discovery day? I know, I know somebody out there is asking this question. Geez, what’s it going to cost to get out there? And you know what it is, you’re charging people $1,000 for the tour, or is it, is it free? What does it cost to do a discovery day with Oxi fresh?

Sure. Yeah. So, and there’s a lot of companies do this different, we have a very, um, what I consider a unique approach to this. We’re not just flying people out that haven’t gone through a very, very detailed process with our development team prior. So if you called me one day and said, Hey Matt, I’ve been looking at Oxford for a long time, I want to do this. I’d say, let’s put the brakes on it a little bit. I need to know about you. We had to go through the process. This could take weeks or months by the way. So the discovery is after a long amount of time in terms of, or a short amount of time, but a lot of conversation, a lot of deep dive into material and having conversation with our franchisees. Right? Like-minded franchisees. Yep. So this is, this is after we’ve kind of said, yep, this is a good fit for us.

It’s a good fit for you. It doesn’t, we don’t charge anything. We want you to at first realize that this is a two way street. I have the flexibility through our ownership to fly individuals out that we feel would be a good fit for Oxford. So we fly you out to come and do this. Um, and they give us that because if we feel that it’s appropriate and Mike and I are both franchise owners, we know what it takes to be successful in this business. So when we get to that point, we’re very competent and being able to invest in somebody else before they ever invest in AKI fresh.

And if you, if you go out there and, and you sold an Oxi fresh franchise awarded one to somebody who’s not successful, you know, you guys make a percentage of somebody’s gross revenue, you know, and so you’re not making anything as Oxi fresh corporate. If someone’s failing, I mean your, your, your success is tied together. Uh, talk to us here. I have two final questions about field training. Um, at the end of the day, someone’s going to have to go out there and clean carpet and know how to clean carpet. You know, if you buy an Oxi fresh franchise, you’re going to have to know how to clean carpet, know how to train people to clean carpet. You’re going to have to know how the online scheduling works. How detailed of field training do you do? Do you go into, I mean, are, do, do franchise, do a potential franchisees actually go out there and clean carpet themselves? Are they watching videos about this is how we clean carpet or what are they doing?

All the above, right? So while you’re here, we spend most of the time field training cause that’s the hardest thing to reenact when you get home, right? We can always go through marketing. We don’t have to go through scheduling jobs and how the online scheduler interacts with your customers. All that can be done very easily. What is harder to recreate it? The actual training in the field. So we spend most of the time while you’re here. Uh, what we didn’t talk about is when you become a franchise, after that first two days, you’re going to stay at least another two to three days or come back to Denver for two or three days for more training, right? So that’s not the only training. So most about about 70% of the people that come will come for the whole week expectation to become a franchise without the obligation.

So after that two days, if they don’t feel comfortable, that’s fine. They can go home. But a lot of people don’t want to make two trips. So they go to the discovery day. First two days sign, become a franchise. Wednesday, Thursday, Friday is the additional training. Um, and this is where we really dial into the cleaning process, the customer engagement, the process of going from a job on your schedule, going through the job to call ahead, the walkthroughs, payments, all that sort of stuff. So that is something we’ll drill very hard. Um, the nice thing about our cleaning system, it’s very easy. We can train anybody, male, female, young, old. It’s not heavy equipment either. So that piece is easy. But what we do on the back end of that is to piggyback on just the end. In the field training, we have a very in depth online Oxi fresh university.

We’ve worked very hard on this and it’s got seven different stages to it. It’s got mixing of product, it’s got carpet cleaning, upholstery cleaning tile and grout cleaning, even hardwood floor cleaning. It even goes into certain aspects of how you get Google reviews from customers, right? The ability to get a review in the home and, and if you just leave a flyer to give them, so all these things, it’s the whole process and you must pass that at a 90% before you as an owner can open your schedule. And if you have a technician, they must pass that in 90% certain before they can actually put jobs on their schedule. So it’s not just kind of we trust you. These are very imperative things to keep our brand to what we consider world class customer service, which we have now. We need those things to happen and you should want them to happen so that everyone on your team has the skill set to do a good job.

Well, I know some of our listeners right now are going to be going up to thrive time, show.com forward slash Oxi fresh. Again, that’s thrive time show.com forward slash Oxi fresh to learn more about the brand. But if you buy an Oxi fresh franchise, at the end of the day, you have proven turnkey marketing, a history of success, low startup costs, cutting edge carpet cleaning technology, and much, much more. But Matt can’t help you. The Oxi fresh team can’t help you if they don’t get a chance to know yet. So just go up there to thrive time, show.com, forward slash Oxi fresh fill out the form. And Matt, you’re going to give them a call and then what happens?

Yup. So you’re going to get an email, you’re going to get a text message. Um, and uh, you’re also gonna get a phone call and we’re going to set something up. We’re going to take the process. I’m going to learn a lot about you, what you’re looking to accomplish, your goals. We’re gonna talk about how Oxford may or may not be able to accomplish that. So, um, and we’ll just have an open forum where we can get through the process and if you become a franchise, great. If not, that’s okay too.

Man, I appreciate your time more than you could possibly. Uh, uh, no, no, cause I know you today, you have multiple people in from out of town to buy an Oxi fresh franchise. And so this is not a theoretical day for you. There are real people in from all over the country visiting today. So you’ve a busy day. So I’ll let you get back to what you’re doing. I’m sure you have some, a discovery day, dodgeball sessions to complete and important things like that. So I’ll let you get back to it. And again, thank you for being on the show today, my friend.

All right, everyone have an awesome day. I appreciate the time. And we’re here if you guys wanna explore Oxi fresh.

All right, take care. Now it’s time to end the show with the boom. If you will allow me to have the honors here. I typically don’t get to take the show out with a, with the boob. I don’t, I don’t get a chance to do it very much. It is the main vocal talent of the show. I personally was offered the opportunity by Clary to English show with Hey, boom, fuss. If you are out there today, you are tired of the frustration. You’re tired of a lack of practical education and you want to change your financial situation and off not having the success that you deserve to have and you want to learn the skills to pay the bills as soon as possible and you want your life to be become less stressful. You want to take your life to the next level, like your singing with Aaron. Never. If you want to become the success that you deserve to be, then to bring an ecstasy book your tickets for our next in-person thrive time show workshop. And now if any further, I do three Oh yes to one.

Boom. All right, youth. Why did you cue up your shirt? Come on man. [inaudible] that you can hit that button whenever you want to hit that button and you was a mean man. Hit come on. Killed the explosion. That would be no [inaudible] Nope. Don’t take the satisfaction from me. This and here. I’m going to hit that button when I want to hit the button but forth. [inaudible] going into that me talk about fire dangers of the nasty, nasty sounds made by the kangaroos because that is crazy fight. Just talk about the dangers in and give a hit to explosions. Okay, so this is very important food. You ever be over there with yourself surrounded by what could be a kangaroos safe then the in what you’re going to do if you don’t want to upset it because the kangaroos are a lot bigger than people think. I don’t know if a lot of people do the way of this, but the average kangaroo right now, what would you get the hot worth with the average kangaroo?

This is crazy. It’s 5.9 feet tall and it is so big, and if not life the way you think it is. And so if you were to have a near a kangaroo, you would want to say who did it? And if the kangaroos there, then you know that it was a kangaroo and then you just got to go. You just got to run out of their baby. You can’t be near that kid. Guru. Thank you. That’s all I wanted to say. If you just want to let me say that earlier, I could have not interrupted Joe’s dope. So do your little count down and I’ll get to middle Sam to fit going time. All right, so now that he further ado, three, two, one, boom.