Godfather of Franchising – Terry Powell

Why You Shouldn’t Love or Know About Donuts if You Want Own a Dunkin’ Donuts (w/ the Godfather of Franchising Terry Powell)

1. Terry “Boom Boom” Powell, how are you sir?
2. Terry, for the listeners out there that are not super familiar with your background, how and when did you first get introduced to franchising?
3. Terry, what has appealed to you about the world of franchising for over 35 years?
   1. The fact that many people (Dreamers)  want to own a franchise and take control of their financial future.
4. Terry, how would you describe what you do to our audience?
   1. FUN FACT – Terry Powell focuses on helping people to produce:
      1. Income Goals
      2. Lifestyle Goals
      3. Wealth Goals
      4. Equity Goals
   2. NOTABLE QUOTABLE – “The business isn’t just a dream. It is a vehicle to get to your Income, Lifestyle, Wealth and Equity Goals.”
5. Terry, what percentage of franchisees are first time business owners?
   1. NOTABLE QUOTABLE – “The idea that you have to love or enjoy what you’re doing isn’t the key to being successful as a Franchise owner. It’s about getting to your Goals”
   2. Franchises have a much lower failure rate compared to traditional businesses.
6. Terry, according to Forbes 67% of people want to become self-employed. In your mind, what kind of personality type is ideal for franchising and who is not a good fit?
   1. It’s more about helping them (franchisors) understand that there are many other franchise owners who have become successful by using a franchise as a vehicle.
   2. FUN FACT – Franchise outlets account for 20% of all business but also they account for 50% of all business sales.
7. Terry, if somebody is out there thinking about buying a franchise, what is the first step that they need to take?
   1. Franchisematch.com
8. Terry, I would love for you to explain the evolution of franchising and how it has changed over the years?
9. Terry, before anybody can buy a franchise they have to first receive a copy of the Franchise Disclosure Document 13 days before they are allowed to purchase a franchise. What’s in a Franchise Disclosure Document and why is it so important in the world of franchising?
   1. FUN FACT – https://www.floydsbarbershop.com/franchise/franchise-requirements/
      1. Preferred that Franchisees live in the market they plan to develop.
      2. Candidates must have a net worth of US $5.4 million or greater, excluding primary residence.
      3. Cash requirements: US $2 million or greater (cash and securities, not including retirement accounts)
      4. Five years minimum multi-unit management experience in a service related industry with the following skills:

• Inspiring leader that creates a positive work environment
• Staffing, training and supervising a team of 25 employees or more
• Developing and leading a support team infrastructure (operations, recruiting, marketing, HR)
• Financial acumen with business plans, financial models, p&l reporting and balance sheets
• Adhering to and reinforcing standardized operational procedures and marketing plans
• A clear understanding of the real estate development process

1. 1. 1. https://www.entrepreneur.com/article/254051
      2. The Franchise Disclosure Document covers every aspect of the business and is given to the franchisor after they both
      3. They have a minimum of two weeks for the franchisor to look over the documents.

• The 23 Items Your Franchise Disclosure Document Must Include:

1. 1. 1. The Franchisor and Any Parents, Predecessors, and Affiliates
      2. Business experience
      3. Litigation
      4. Bankruptcy
      5. Initial fees
      6. Other Fees
      7. Estimated Initial Investment
      8. Restrictions on Sources of Products and Services
      9. Franchisee’s Obligations
      10. Financing
      11. Franchisor’s Assistance, Advertising, Computer Systems, and Training
      12. Territory
      13. Trademarks
      14. Patents, Copyrights, and Proprietary Information
      15. Obligation to Participate in the Actual Operation of the Franchise Business
      16. Restrictions on What the Franchisee May Sell
      17. Renewal, Termination, Transfer, and Dispute Resolution
      18. Public Figures
      19. Financial Performance Representations
      20. Outlets and Franchisee Information
      21. Financial Statements
      22. Contracts
      23. Receipts

1. Terry, if somebody is thinking about buying a franchise, how much money does somebody really need to get in the game and to get started?
   1. Your Career 2.0: A Survival Guide for The Battered Career and Investor Syndrome
      1. https://www.amazon.com/Your-Career-2-0-Survival-Battered/dp/1501025848
2. Terry, how do most people fund their franchise investment?
3. Terry, what is the biggest challenge that most people face when it comes to buying a franchise?
   1. 95% of our clients have ended up investing in a franchise that they would’ve never looked at our even thought about purchasing. It’s about looking at the possibilities outside of your view. Most people think it’s about finding a needle in a haystack. They think they should find the “perfect” franchise. It’s actually about finding the franchise that will help you get to your goals.
4. You’ve become successful as a result of doing things a certain way, what is one thing that you do every day that most people do not do?
   1. “I’m very possibilities driven. I also believe that you always need to be adding or creating more value.”
5. Thus far, every successful person that we’ve had on the show is very intentional about their daily “planning time.” Where do you do this and what does it look like?