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Flashback to Carol Tice & Mistakes to Avoid When Buying a Franchise

Key Takeaways:

[0:18] Today’s episode of Franchise Euphoria is brought to you by IndyFranchiseLaw.com, a leading resource in the franchise space. Head over to IndyFranchiseLaw.com learn more!

[1:00] For today’s episode, Josh heads into the archives of early Franchise Euphoria to bring back an episode with esteemed business author, Carol Tice, who was featured on the third ever episode of Franchise Euphoria.

[2:06] The flashback begins with Josh introducing Carol Tice, a franchise writer and blogger who has incredible insight on the risks associated with franchising.

[3:20] Carol’s writing career really took off when she transitioned to reporting. She spent five years writing about home improvement–specifically lumber yards–which served as her introduction into the business world.

[5:30] One of the big things you want to buy with a franchise is expertise and a proven model. Oftentimes, businesses start selling franchises quickly after opening their first location. This can be a red flag to anybody looking to purchase a franchise.

[7:38] As a franchisee, you need to ask yourself what you are getting out of your franchisor in return for the royalty fee you pay them.

[9:41] While you miss out on brand recognition by buying into the franchises, on the other hand, you are presented with ground floor opportunity.

[10:52] Buying a franchise is kind of like a romance movie. People fall in love with the brand and commit to purchasing a franchise, but the problem is that they don’t do their due diligence.

[12:00] Carol suggests that you ask yourself the following questions before you buy a franchise: (1) How many of these franchises have been sold off, closed, or changed hands in the past year? (2) Have you spent a day job shadowing an owner who operates their business? (3) Have you called up owners and asked them if they would buy the franchise again if they go could back in time?

[14:53] Many people don’t realize that franchise failure happens behind the scenes.

[19:04] Some people will really hate being franchisees because they want more freedom to do their own thing.

[22:30] Franchising often appears as a safer option than starting your own “Mom & Pop” business, but Carol is not entirely convinced that is the case.

[24:51] Carol suggests that something that new and potential franchisees don’t account for is how much money they will need to get over the hump of starting a new franchise location.

[27:52] In franchising, once you sign your franchise fees, you never get that money back, so it’s all the more important to be very careful on the front end and do extra due diligence.

[30:26] You have to realize that there is no guarantee for success when it comes to franchising, but you can increase your likelihood by doing some real research before getting yourself into that situation.

[35:37] Thanks for listening, and please, reach out to Josh anytime through email at josh@franchiseeuphoria.com. If you enjoyed this interview, please leave us a review on iTunes.

 

Mentioned in This Episode:

josh@franchiseeuphoria.com

www.franchiseeuphoria.com

www.indyfranchiselaw.com

Carol’s Forbes Blog

www.caroltice.com

Josh Brown

Josh Brown

Hi! I’m Josh Brown, franchise attorney and creator of the Franchise Euphoria podcast. I’m just your average guy who loves to golf, eat hibachi, and immerse myself in the ever-expanding franchise world.

My goal is to navigate entrepreneurs and all people interested in the current events of franchises through all the hottest topics and most popular tools for success. Going on four years now, Franchise Euphoria is hotter than ever and ready to help you plan and execute a pathway to success.

Josh Brown

Josh Brown

Hi! I’m Josh Brown, franchise attorney and creator of the Franchise Euphoria podcast. I’m just your average guy who loves to golf, eat hibachi, and immerse myself in the ever-expanding franchise world.

My goal is to navigate entrepreneurs and all people interested in the current events of franchises through all the hottest topics and most popular tools for success. Going on four years now, Franchise Euphoria is hotter than ever and ready to help you plan and execute a pathway to success.

pardee2003 from United States
11/16/2019
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Great and applicable information from professionals in the franchise world that are doing it every day. I’ve listened to 3 episodes: Gutter Brothers, Woofies, and Cycle Bar. Enjoyed all and looking forward to hearing more.
WTutor311 from United States
8/30/2019
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Highly recommend. Great guests. Filled with tons of helpful information.
Katie Joy B. from United States
7/16/2019
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Josh and his wide variety of knowledgeable guests are truly rockstars! They deliver quality (and free!) franchise knowledge and advice in each and every episode. The great advice they provide, combined with the engaging way they deliver it had me hooked from the very first listen. Thanks for putting out such a stellar show Josh - keep up the great work!
Jordan gross from United States
07/15/2019
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This podcast provides the advice necessary to start building, growing, and scaling your business TODAY! The host asks probing questions of his guests that add value to the listeners in an immediately implementable way!
VPugliese from United States
07/15/2019
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What do you get when you combine business savvy, legal expertice and a great personality? You get the ultimate podcast for franchise owners. Josh Brown brings it all togehter perfectly with Franchise Euphoria. Not only does he possess all of the skills and abiliites above, but he has great guests, asks awesome questions and created the ideal podcast for this niche. If you have a franchise, or are considering it, subscibe to this show and consume all of the content!
Mick James from United States
06/05/2019
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Started listening to Josh's podcast after the wife and I decided to buy a franchise and I quickly went through about 200 episodes on 1.5x & 2x, before signing on to purchase a franchise. Josh's info was an invaluable part of our decision to buy, and after listening to so many episodes, I felt like I knew and trusted him on a personal level, so it was a no-brainer to enlist his services when it came time to review the franchise agreement. Josh was super easy to talk to and very empathetic to our needs, and being first time business owners, we needed all the empathy we could get. Josh helped us negotiate a great deal with the franchisor and we were very happy with his services. Great podcast, great guy, great service to anyone involved in the franchise world!
Dean575 from United States
06/04/2019
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Very interesting discussion. I found the information valuable.
Summieysum from United States
05/06/2019
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I've just completed the legal process of franchising my business and have now begun selling franchises. Just found this podcast and it's an incredible resource! Great content and Josh is a very engaging host. Highly recommend for franchisors and franchisees.
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