Entrepreneur Podcasts | 11 Most Common Ways To Fund A Franchise – Episode 1 – Part 1

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We started from the bottom, now we’re on the top. Teaching you the systems to get what we got. Cullen Dixon’s on the hooks, I’ve written the books. He’s bringing some wisdom and the good looks. As the father of five, that’s where I’mma dive. So if you see my wife and kids, please tell them hi. It’s C and Z up on your radio.

And now three, two, one, here we go!

We started from the bottom, now we’re here. Started from the bottom, and that’s what we’re about to do.

Terry, thank you for joining us, my friend.

My pleasure. Good to be here, Clay.

I have to say, I’m a little bit intimidated, because I know today we are talking about the 11 most common ways to fund a franchise, and I know that you have been through this literally thousands of times. So just to give the thrivers out there a little bit of a background, how many franchises do you think that you’ve worked with over the years or helped? How many franchisees do you think you’ve helped buy a franchise over the years?

Yeah, the 30 years of working with individuals to help them become franchise owners has resulted in tens of thousands of people are now franchisees and living their dream, building income, lifestyle, wealth

and equity.

You say that like no big deal, but tens of thousands. I mean, this is like an arena of people that you’ve helped buy franchises and helped them now live the self-employment dream. That’s amazing.

It is amazing. It’s been a great calling and something I’m

very passionate about. I don’t know how possible it would be, but I’m tempted to try to organize a Terry Powell Appreciation Day where we get all of them in one arena to see if we can pull it off. Now, when somebody wants to buy a franchise, it obviously requires capital. From my experience, it seems as though many people, when they think about buying a franchise or starting a business at all, they’re just overwhelmed by the idea of, how am I going to get the money? I don’t know if I’m going to get the money. However, today we’re going to talk about, there’s 11 ways, 11 ways, there’s more than 11, these are like the 11 most common ways to raise capital to buy a franchise. And so we’ll just kind of go through them one at a time, and I’m going to hit you up for some stories and examples and see if you can really give us some practical training and some advice on how we can do this. So the way to get franchising, or the way to get funding for franchising is number one here, the most common way is direct financing. Now this involves the franchise company directly financing their franchisees. So I guess it would be like if I wanted to buy a restaurant from a restaurant chain, the actual corporate office would help me get financing directly? How does that work?

Well, that’s exactly right. Direct financing is where the franchisor provides some or all of the financing for a particular project with a franchisee. It’s not the most common form of funding. It’s not something that franchisors typically do. If they were going to do that, primarily they would look at opening company units. But there are some franchisors that have developed financing plans that are very advantageous. And getting direct funding is just a matter of qualifying to become a franchisee and take advantage of those funding options.

Okay, okay. Now moving on to the way of getting funding number two, I guess here, is the third-party lenders. Now, many franchise companies have actually already arranged indirect financing or leasing programs for their franchisees. Can you walk me through how that works?

Yeah, the smart franchisors realize that funding is the fear factor and it is a way of confusing candidates to get them off track from what they need to focus on and that’s getting into business. So they’ve systematized the funding aspect and they’ve brought together approved vendors that provide loans and equipment leases and things of that nature so that the franchisee has a basis to work from. They don’t require you to use them, but it really gets you, you know, 80% of the way there pretty quickly of understanding your options. One of the challenges with funding is that too many times we wait till after the prospective franchisee is ready to get started before they start talking about funding. It’s back in the mortgage days when people had to wait to go find a home and then go get a mortgage. Today you get pre-approved and then you go pick the home. In franchising today, that’s really the way you want to come into it is understand your options and be working proactively to determine what are the options for you, so that when you do find that dream business, you’re ready to go.

A little story time with Terry Powell here. Can you walk me through maybe an example you can think of of maybe somebody who wanted to buy a franchise desperately, who didn’t think they qualified, and how maybe the franchisor or the corporate office kind of recommended them to a third party?

Can you think of an example of that? There’s a lot of examples. We coach many individuals around the idea that not to put the funding first in their mind. It’s because it creates a barrier. How am I possibly going to be able to come up with the capital to invest in this business or whatever business I find? And what we know from 30 years of experience is funding is attracted to the individual once they’ve found that business and they aspire to own it, rather than looking at it from the standpoint of waiting until that point. So it’s a matter of just understanding that.

Okay.

The number of new customers that we’ve had is up 411% over last year. We are Jared and Jennifer Johnson. We own Platinum Pest and Lawn and are located in Owasso, Oklahoma. And we have been working with Thrive for business coaching for almost a year now.

Yeah, so what we wanna do is we wanna share some wins with you guys that we’ve had by working with Thrive. First of all, we’re on the top page of Google now. Okay. I just want to let you know what type of accomplishment this is. Our competition, Orkin, Terminex, they’re both 1.3 billion dollar companies. They both have two to three thousand pages of content attached to their website. So to basically go from virtually non-existent on Google to up on the top page is really saying something. But it’s come by being diligent to the systems that Thrive has, by being consistent and diligent on doing podcasts, and staying on top of those podcasts to

really help with getting up on what they’re listing or

ranking there with Google.

And also, we’ve been trying to get Google reviews, asking our customers for reviews. And now we’re the highest rated and most reviewed Pest and Lawn Company in the Tulsa area. And that’s really helped with our conversion rate. And the number of new customers that we’ve had is up 411% over last year.

Wait, say that again.

How much are we up?

411%.

Okay, so 411% we’re up with our new customers.

Amazing.

Right. So not only do we have more customers calling in, we’re able to close those deals at a much higher rate than we were before. Right now, our closing rate is about 85%, and that’s largely due to, first of all, like our Google reviews that we’ve gotten. People really see that our customers are happy, but also we have a script that we follow. And so when customers call in, they get all the information that they need. That script has been refined time and time again. It wasn’t a one and done deal. It was a system that we followed with Thrive in the refining process. That has obviously, the 411% shows that that system works.

Yeah, so here’s a big one for you. Last week alone, our booking percentage was 91%. We actually booked more deals, more new customers last year than we did the first five months. I’m sorry, we booked more deals last week than we did the first five months of last year, from before we worked with Thrive. So again, we booked more deals last week than the first five months of last year. It’s incredible. But the reason why we have that success is by implementing the systems that Thrive has taught us and helped us out with.

Some of those systems that we’ve implemented are group interviews. That way we’ve really been able to come up with a really great team. We’ve created and implemented checklists so when everything gets done and it gets done right, it creates accountability. We’re able to make sure that everything gets done properly, both out in the field and also in our office. And also doing the podcast like Jared had mentioned that has really, really contributed to our success. But that, like I said, the diligence and consistency in doing those. And that system has really, really been a big blessing in our lives. And also, you know, it’s really shown that we’ve gotten a success from following those

systems. So before working with Thrive, we were basically stuck. Really no new growth with our business. And we were in a rut.

The last three years, our customer base had pretty much stayed the same. We weren’t shrinking, but we weren’t really growing either.

Yeah, and so we didn’t really know where to go, what to do, how to get out of this rut that we’re in. But Thrive helped us with that. You know, they implemented those systems, and they taught us those systems, they taught us the knowledge that we needed in order to succeed. Now it’s been a grind, absolutely it’s been a grind this last year, but we’re getting those fruits from that hard work and the diligent effort that we’re able to put into it. So again, we were in a rut, Thrive helped us get out of that rut. And if you’re thinking about working with Thrive, quit thinking about it and just do it. Do the action and you’ll get the results. It will take hard work and discipline, but that’s what it’s gonna take in order to really succeed. So I just wanna give a big shout out to Thrive, a big thank you out there to Thrive.

We wouldn’t be where we’re at now without their help. Hi, I’m Dr. Mark Moore. I’m a pediatric dentist. Through our new digital marketing plan, we have seen a marked increase in the number of new patients that we’re seeing every month, year over year. One month, for example, we went from 110 new patients the previous year to over 180 new patients in the same month. And overall, our average is running about 40 to 42% increase month over month, year over year. The group of people required to implement our new digital marketing plan is immense. Starting with a business coach, videographers, photographers, web designers. Back when I graduated dental school in 1985, nobody advertised. The only marketing that was ethically allowed in everybody’s eyes was mouth-to-mouth marketing. By choosing to use the services you’re choosing to use a proof and turnkey marketing and coaching system that will grow your practice and get you the results that you’re looking for. I went to the University of Oklahoma College of Dentistry, graduated in 1983 and then I did my pediatric dental residency at Baylor College of Dentistry from 1983 to 1985. Hello, my name is Charles Colaw with Colaw Fitness. Today I want to tell you a little bit about Clay Clark and how I know Clay Clark. Clay Clark has been my business coach since 2017. He’s helped us grow from two locations to now six locations. We’re planning to do seven locations in seven years and then franchise. Clay’s done a great job of helping us navigate anything that has to do with running the business, building the systems, the checklists, the workflows, the audits, how to navigate lease agreements, how to buy property, how to work with brokers and builders. This guy is just amazing. This kind of guy has worked in every single industry. He’s written books with Lee Crockrell, head of Disney, with the 40,000 cast members. He’s friends with Mike Lindell. He does Reawaken America tours where he does these tours all across the country where 10,000 or more people show up to some of these tours. On the day-to-day, he does anywhere from about 160 companies. He’s at the top. He has a team of business coaches, videographers, graphic designers, and web developers. They run 160 companies every single week. Think of this guy with a team of business coaches running 160 companies. Every 6-8 weeks he’s doing Reawaken America tours. Every 6-8 weeks he’s also doing business conferences where 200 people show up and he teaches people a 13 step proven system that he’s done and worked with billionaires, helping them grow their companies. I’ve seen guys from start-ups go from start-up to being multi-millionaires, teaching people how to get time freedom and financial freedom through the system. Critical thinking, document creation, organizing everything in their head to building it into a franchisable, scalable business. One of his businesses has like 500 franchises. That’s just one of the companies or brands that he works with. Amazing guy. Elon Musk, kind of like smart guy. He kind of comes off sometimes as socially awkward, but he’s so brilliant and he’s taught me so much. When I say that, Clay is like, he doesn’t care what people think when you’re talking to him. He cares about where you’re going in your life and where he can get you to go. That’s what I like him most about him. He’s like a good coach. A coach isn’t just making you feel good all the time. A coach is actually helping you get to the best you. Clay has been an amazing business coach. Through the course of that, we became friends. My most impressive thing was when I was shadowing him one time, we went into a business deal and listened to it. I got to shadow and listen to it. When we walked out, I knew that he could make millions on the deal and they were super excited about working with him. He told me, he’s like, I’m not going to touch it. I’m going to turn it down because he knew it was going to harm the common good of people in the long run. The guy’s integrity just really wowed me. It brought tears to my eyes to see that this guy, his highest desire was to do what’s right. Anyways, just an amazing man. So, anyways, impacted me a lot. He’s helped navigate. Anytime I’ve gotten nervous or worried about how to run the company or navigating competition and an economy that’s like, I remember we got closed down for three months, he helped us navigate on how to stay open, how to get back open, how to just survive through all the COVID shutdowns, lockdowns.

I’m Rachel with Tip Top K9, and we just want to give a huge thank you to Clay and Vanessa Clark.

Hey guys, I’m Ryan with Tip Top K9. Just want to say a big thank you to Thrive 15. Thank you to Make Your Life Epic. We love you guys, we appreciate you, and really just appreciate how far you’ve taken us. This is our old house. Right, this is where we used to live a few years ago. This is our old neighborhood.

See? It’s nice, right?

So this is my old van and our old school marketing. And this is our old team. And by team I mean it’s me and another guy.

This is our new house with our new neighborhood. This is our new van with our new marketing, and this is our new team.

We went from 4 to 14, and I took this beautiful photo. We worked with several different business coaches in the past, and they were all about helping Ryan sell better and just teaching sales, which is awesome, but Ryan is a really great salesman, so we didn’t need that. We needed somebody to help us get everything that was in his head out into systems, into manuals and scripts, and actually build a team. So now that we have systems in place, we’ve gone from one to 10 locations in only a year.

In October 2016, we grossed 13 grand for the whole month. Right now it’s 2018, the month of October. It’s only the 22nd, we’ve already grossed a little over 50 grand for the whole month and we still have time to go We’re just thankful for you thankful for thrive and your mentorship And we’re really thankful that you guys have helped us to grow a business that we run now instead of the business running us Just thank you. Thank you. Thank you times a thousand

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You work every day in your business, but for two days you can escape 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, but 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’ve 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 tickets and if you can’t afford $250, we have scholarship pricing available to make it affordable