Brandon Beachy

The countdown is on! Our 6th Annual Career Development Summit kicks off next weekend, bringing players together for a weekend of professional growth, connection, and opportunity. We’re excited to feature just a few of our outstanding panelists who are ready to share their insights and experiences with our attendees. See you in Austin, Texas!

@danielcronauer @Franchise_BW @BobbyBizScout Lots of businesses in general don’t make money. I’d argue most small businesses in general are jobs disguised as businesses, not unique to franchises. Franchising isn’t for everyone and anyone pretending it is should be ran from. Proper mindset and expectations needed upfront

@Franchise_BW @BobbyBizScout To your point. There is also lots of businesses...that don't make money! They are jobs disguised as a business.

I lost 6 figures on 2 Chronic Tacos franchises. Called every broker in town. Zero offers. Not even for pennies. 4 years after shutting down for good, I'm still paying the SBA loan. Here's the expensive truth about franchise ownership:

@JaredDHardin @gvh41 I ran a million spread sheet scenarios based on all variables and sizes to get comfortable sf prices for core services. Quick quote. Go over it on the spot with our recommendations. They understand it all so much better than going over a pdf later that night

@Brandon_Beachy @gvh41 I could give a pretty decent estimate in person for medium to small sized lots. I just got my CRM on my phone and I am going to be dialing that this week so I can draft a quote and send it to them on site.

For business services, what is the average wait time for someone to view and approve a quote? What have you done to decrease the time it takes for someone to approve your quotes and increase the acceptance rate?

@gvh41 @JaredDHardin It really sets the table for their entire experience with your company. A real opportunity to demonstrate genuine care for the customer and their problems

@Brandon_Beachy @JaredDHardin yes! We are working a lot on improving our initial intake call right now.

@gvh41 @JaredDHardin To add to these great points, it starts before the appointment on the initial phone call. Ask more questions. Don’t simply set an appointment. Also, delivering and articulating the quote on the spot in person is incredibly valuable. Might not be possible in every trade though

Try and get to a place where you don't need to ask this question. Start by refining your sales process so that you deeply understanding the customer's decision making process and timeline. Who's involved in the decision making process and who signs the check? Were all parties present during the initial appointment? If not, how can I make sure all parties get all relevant information needed to help make their decision? What are all the things that need to happen for all parties to come to a decision? What's the time period for each of those things to happen, when is the final decision being made, and why is it being made at that time? Is there anything I can do to help accelerate that timeline? How can I add different touchpoints (calls, texts, educational videos, etc.) to help add value to decision makers at each of those steps so that I position myself far above any other competitive quote? Everything starts with discovery questions at the initial appointment.

Never in doubt

@MatznerJon I agree. For me and many I work with, the main constraint is within them (knowledge, experience), not necessarily the industry. The playbook and onboarding sped my ramp considerably. I want competitive advantages in the industry too. Economies of scale, nat’l relationships, etc.

If you are looking at buying a franchise or a business, this is how I think you should approach it: “Does this acquisition or franchisor solve at the constraint for this industry”? Silly example: a Residential Landscaping Franchisor. Constraints are 1) managing low wage labor 2) lead generation. Nobody has heard of “the brand” in a new territory. Franchisor showing off “our lawnmower blades chop grass twice as fast” is not the fucking hard part! The association with the franchisor or the acquisition should position you well AGAINST THE CONSTRAINT. Why is HVAC (among other reasons) so conducive to acquisitions? Because the constraint is the skilled labor - and in many cases buying it not building it is easier. Not the case in resi landscaping (unless mayyybee you are buying high quality existing relationships)… but certainly a bad idea to buy if project revenue only.

@indwesbaseball @NAIABall Some good company on that list

Big time performance from Brock Buckley in Lincoln this week!💪 He went 16.1 innings, gave up 1 run, 5 hits, and picked up 18 Ks! He also moved into second place in program history for single season Ks with 104, becoming just the second Wildcat to surpass 100!🔥 @NAIABall

@brandonadixon I didn’t consciously plan that, but franchising was that “less risk” get reps path in my mind. Lots of us looking for that. No matter the path I’m glad I got the reps at operating and wearing the hats, but the next stabs will be bigger and more removed. Love the updates!

Overall I’m excited for this company’s future, but even the perfect deal on paper is a grind. I was in the industry and still was naive to what I was getting myself into. I couldn’t imagine how I’d feel right now if I would have bought this as my first business with no industry experience. If you’re looking for a business and you’ve read this far here’s my recommendation, get reps with less risk, and then find the right opportunity to go all in on.

I bought my second street sweeping company 6 weeks ago. It’s been awhile, so here’s an update of how we got here, how it’s going, and what I’d do if I was starting over.

@TheFranDawg That is wild. I need to know what franchise this is and immediately go through their process. So many questions

"We'll franchise....businesses that don't exist"

@MatznerJon It’s everywhere and real people are falling for it. I probably would have to. Someone should sell a course on how to spot the course selling swindlers 💡

I'm inventing a new term and it's called "performative investing". Performative investing is everywhere now, especially in the "buy a businesses" corner of the internet. Also happens in Airbnbs, drop shipping , whatever. It's time to talk about this phenomenon that's both amusing and concerning. Here's what I've observed: there's an entire ecosystem of "investors" whose actual business model has nothing to do with investing. BUT...the storyline is always the same: They flash an "acquisition"—(in reality) its a sliver of equity in a tired car-wash or laundromat or whatever. They hustle out a slick video, slick screenshot, and a caption like "Closed deal number seven!" Reality? It's a nothing stake that cost less than the sales price of their flagship mastermind. Hell, they might even show some impressive charts with up-and-to-the-right trajectories! Closeups of bank deposits or quarterly returns or deal terms! But the kicker: 95% of what they put in their pocket every month does not come from these investments. It comes from selling playbooks about these deals, not from the deals themselves. Any serious investor or operator does not take these people seriously, but they are constantly wrapping themselves up in the verbiage and the symbolism of real investors and operators in order to sell the masses info products. The math is absurd. Info-product margins dwarf the drips of real cash flow by a factor of 100x, but revealing that would shatter the illusion they've built. The show never stops. These people are like the Chinese knockoff equivalents of real investors. Any morsel of real credibility or real deal underwriting that they pick up on the internet or from a relationship immediately becomes some new morsel that they can wrap themselves up in to hide their core lie. It's get rich quick dressed up as private equity. The most successful practitioners have built entire media operations dedicated to one purpose: reflecting the appearance of investment success. They interview legitimate investors, speak at conferences where merely being on stage grants authority, and document every minor interaction as if it were a major business development. Spotting the act is hard. They often have a large audience and control any of the information that's out there about them, so a simple Google search doesn't cut it. I'm fascinated by this because it's essentially a modern version of the emperor's new clothes. Everyone in the industry can see what's happening, but the incentives to point it out are minimal. Meanwhile, countless aspiring entrepreneurs hand over substantial money for courses created by people whose primary qualification is... selling courses about XYZ. To be clear: there are legitimate educators who've had real success and teach from experience. They're just increasingly hard to identify amid the noise of performative expertise. Have you noticed this dynamic too? Do you have examples that confirm or challenge this observation?

@MatznerJon Realizing that path isn’t for you should be viewed as an equally sought after outcome. I’m doing my part, but the noise is loud.

@Brandon_Beachy I think what frustrates me the most is people assume that I’m negative on the whole category and I’m not I just want people to go into it with wide open eyes

Dear Searcher, You want to buy a boring business! WOW. LOVE IT. You’re done with the corporate shuffle—bad managers, fake urgency, work that doesn't mean much. You want ownership! You want control! You want to matter! That makes sense. But before you lock in the SBA loan and start calling yourself a boss bitch, I want you to stop and check yourself before you wreck yourself. Think hard. Are you running TO something, not just FROM it? ---- 1. You want to feel like someone again. Let’s be honest. The modern corporate job can be rough. You can do good work for years and still feel like poop—like your work doesn’t really count, like you’re just an ass in a seat seat. Buying a business feels like the antidote. You’ll be the one in charge! People will need you! You'll finally feel like your work means something! But that feeling won’t come just because your name’s on the paperwork. It doesn’t matter what your title is if you’re still trying to patch up a sense of self that got eroded over years. If you’re chasing this to feel whole, just know: the work won’t fix you. You’ll still be you—just with more responsibility and a big ass monthly nut. ----- 2. You’re trying to take back control. In your last job, you were at the mercy of other people’s decisions...reorgs, layoffs, new bosses, bad direction. You saw incompetence rewarded and good work ignored. And eventually, you started thinking: “I don’t want to be managed anymore. I want to call the shots!!” That instinct makes sense. Ownership feels like control. But here’s the trap: small business doesn’t give you total control. It just SHIFTS who you answer to. You’re not reporting to a VP anymore—you’re answering to employees, customers, lenders, and the bank holding your personal guarantee... oh yea.. and the MARKET who is bastard. The pressure doesn’t go away. It gets closer to your skin. If you're buying a business to finally feel in control, you're going to be surprised how much of the job is managing things you can't control at all. What you actually get isn’t control—it’s responsibility. Big fucking difference. 3. You think this is a smarter path. You’ve watched the Youtube videos. You’ve seen the threads. The idea is simple: find a profitable little business, take over, optimize, and coast. It’s not glamorous—but it’s yours. But here’s the truth no one tells you upfront: You are being paid to carry risk and headaches (@HockJohannes 's phrase). That’s where the money is... That’s what the title actually means... You are personally guaranteeing debt. You are stepping into problems someone else couldn’t—or WOULDN'T—solve. You are inheriting a team, a culture, and a customer base that weren’t built by you, but are now your responsibility. That’s not just the freedom the weenies promise you. That’s weight. Everything else....the story, the cash flow, the vision deck....is just wrapping paper. So ask yourself: Are you doing this because you want to run something real? Or because you want to feel better about where you’ve been? Are you running toward responsibility? Or just away from feeling small? If you’ve faced those questions honestly...and you still want this...then maybe you’re ready. Maybe you’re one of the few who actually understands what this game really is. But if you’re doing this to fix a feeling? Don’t.

@red_jeep75 @jcolesimpson I appreciate that! Openly I’d rather still be playing but I’m having fun in business too. I’m a franchisee with Koala Insulation myself, owning Nashville market. I’m also a consultant helping ppl interesting in getting into franchising and I work with hundreds of brands there

@Brandon_Beachy @jcolesimpson Loved watching you pitch back in the day. Pretty cool to see you evolve into a business man now. Any particular brand you work with or just more about what opportunity presents itself. Regardless, nice to see ball players have a 'second' career outside of their sport.

Franchises are INSANELY RISKY If you want someone who’s going to give you unfiltered perspective on Franchising/SMBs give me a follow @jcolesimpson Unlike many here I am not trying to sell you anything (at least currently 😂) Here’s the thing, I love Franchising, I’ve been in the industry since my early 20s Often people look at Franchising as an alternative to starting a business or acquiring one I, along with others, have encouraged this path (I still would) AND Franchising is the Wild West I know many friends who make millions in franchising I also know people who are bankrupt because of franchising Here are 5 things you SHOULD ABSOLUTELY KNOW if you’re going to jump into Franchising 1. Emerging brands are high risk high reward If a brand has only been around for a few years then you’re making a huge bet on the team behind it That could absolutely pay off Look at Orange theory/Crumbl You could also go bankrupt There is a reason emerging brands are cheaper to get into and have availability, it’s because THEY ARE HIGH RISK There’s also a reason you can’t just buy 15 Taco Bell’s off the street, the risk is much lower, thus you have to beat out many other buyers Franchises exist on a spectrum emerging are the highest risk and generally highest upside Legacy is the lowest risk but often lowest upside It’s possible to get rich doing both, but you have to know the game you’re playing! And you have to know the risk you’re taking 2. FDDs are marketing not a Financial document Are there exceptions to this rule? Sure But THEY’RE EXCEPTIONS Ive read FDDs where they say profit is 40+% when I know the system is not profitable You have to understand many people you’re talking to (Broker, Franchisor) Are incentivized for you to buy In other words they probably aren’t the person you should put all your faith in You have to find non bias sources and that is typically going to be other franchisees in that system or potentially franchisees in that space A general rule of thumb don’t let the people who make money from you doing a certain thing be the only people who you are listening to I’m a home service franchisee Even other home service franchisees that I’m not in I usually have a decent pulse on and if I don’t guess what I can usually get one in less than an hour And unlike other people you’re talking to I MAKE NO MONEY WHETHER YOU BUY OR NOT I don’t care, I have no reason to lie Im not saying the franchisor is lying, I’m saying it would be silly to only listen to them 3. Brand is to Franchising as Location is to Real Estate If you’ve ever invested in real estate you’ve heard the term location, location, location Well in Franchising it’s Brand, Brand, Brand, Brand! Are there real estate investors who make tons of money buying properties in terrible locations ABSOLUTELY! They also know what they’re doing Do you know how you go bankrupt? You think you’re buying a beach house in Miami when it’s really an apartment in Detroit You paid too much, you have the wrong skill sets Need I go on? 4. Only listen to Operators Here’s the thing Franchising at its core it an operations business You’re saying if you give me the right playbook I know I could kill it What that means is they better have a good playbook, and the guy across the table trying to sell you better be a great operator If they’re not an operator, they’re a sales guy, nothing wrong with that But let me talk to the high level operators 5. Business is hard Here’s the least fun part of this Sometimes the problem isn’t the brand, it’s not the location The problem is you Owning a business is hard, and that’s great you’ve always dreamed of running your own ice cream shop It doesn’t mean you’re good at it or you should bet your financial well being on it Franchising is an awesome space, but know what you’re getting into Be careful, if I can help let me know Not sure I can, but I’ll at least try

@jcolesimpson I think what you’re touching on is the need for friction in the buying process. Most brands won’t volunteer it. Lots of brokers won’t either. But that will help frame the decision to avoid a franchisee being ill prepared or equipped for brand support falling flat imo

@jcolesimpson I got in thinking of my investment as purchasing time. Support accelerating my start as a first time business owner by months and years on front end. I was comfortable with that with hopes of much more obviously. It fell flat a lot.

@gvh41 @Nads_Shariff This is why I never flush.

@Nads_Shariff I've never related to someone more. Spend a whole round trying to find your swing. Finally flush one right at the pin only to learn it's 1-2 clubs too long. And it's always when long=dead

I like this guy

@TheFranDawg No doubt the “who” is the key. Fit is king. Waiting too long, catching a wave, wave got too big, etc. I’m def an overthinker here. Thank you for your perspective

Not necessarily - if a Zor meets criteria such as capital, executive team/founder, initial unit economics, industry -- to name just a few, definitely some are worth mentioning. If you wait and see it's unfortunately almost always too late in today's game. A big aspect of all this ofc is who are you talking to, their financial picture, and if they *actually* know what they're getting into vs being a sold a dream that they can kick back and print money with no risk. If they are ready to operate and aren't rolling over their entire 401k, the dynamic changes

"We're just trying to fix the disaster they put us in, and we're just trying to survive that". I'm not surprised at all by this, but here is a real life example of the dark side of franchising being exposed - The franchise sales org - Rep'M - sold 400 units of Ellie Mental Health in 1 year as a passive/semi passive investment. Ellie Mental Health then had to provide legitimate support to a ton of new franchise owners in year of operating. That is *not* easy to do. TLDR- they couldn't handle the growth AT ALL and now 20+ franchisees are exploring legal options, others are bankrupt, etc. Some are simply exiting + rebranding their clinics - which they may be able to pull off bc the Zor is such a shit show. Rep'M is accused of filling out pro formas with candidates and inflating numbers. Anyone who's been in the industry long enough knows the big FSO's do this ALL THE TIME. Yet the biggest rule in franchise sales is NEVER do anything related to PROJECTING financials for a candidate. You are asking to get sued if things go south with the franchisee. Not to mention, inflating financial data for commission is obviously a major piece of shit move to say the least. Also to be clear - not every lawsuit against a Zor has merit. There are times when franchisees are just shitty operators or made mistakes and are looking to recoup cash at all costs, even if it wasn't the Zor's fault. But this doesn't seem to be one of those cases at all - some of the Zees invovled are legit operators of OrangeTheory, KidStrong, and other brands. If you're buying a franchise - don't let unit sales cause you to make a FOMO investment!! You may pay the price a few years later

@TheFranDawg Yeah 400 in a year is going to present hurdles. When I started, a 25+ year vet told me he essentially never presents new brands, with rare exceptions. I have followed suit. You follow the wait and see approach as well?

@Brandon_Beachy Combo of FSO with a preceding reputation, the amount of units (400+!!), nuanced industry with regulation that differs state by state, aggressively marketed as semi-passive / passive.... Yes validation across the board is key early on.