On this episode of the Franchise Secrets podcast, Erik is joined by Stan Friedman to discuss how to find the best emerging and established brands.
As a franchising veteran and high-level executive at several companies, Stan brings a wealth of experience to the table. Whether it’s finding the best emerging and established brands to get involved with or how to beat out the bigger brands, Stan has seen and done it all in franchising.
How Stan found franchising (2:10)
Stan explains how he entered the world of franchising after an unstable career in radio. He went through a program that taught him how to market and offer franchises to large real estate brokers who were suffering under the reign of RE/MAX.
Competing with the big players (4:26)
At the time, RE/MAX was snapping up the best agents by offering competition commission deals. In working for ERA Franchises, Stan offered a better alternative to those who didn’t want to cross over to RE/MAX.
Conversion franchising (6:36)
Stan talks about the method of conversion franchising, which is identifying the top players in a field and going after their base. He touches on how this is a strategic, proactive and more efficient alternative to just advertising to everyone and hoping for the best.
How Google changed franchising (10:15)
Stan discusses how the internet, and the wealth of information that comes with it, has changed the franchising game. The franchisor and franchisee dynamic has shifted, giving franchisees more power. The franchisor needs to adapt to meeting potential franchisees on their terms.
Researching the right franchisees (12:57)
Stan emphasizes the importance of finding the right initial franchisees by researching their backgrounds. Ultimately, the success of the first franchisees is the success of the franchisor.
Collecting data (15:22)
Stan believes the best tool is the ability to collect as much data as possible in order to make more intentional and informed decisions
What Stan does now (18:07)
Nowadays, Stan is the president of FRM Solutions, which produces customizable tools for franchisors to use to help better manage their system. He also hosts his own podcast, Franchise Today, which brings in successful guests to help educate those in franchising.
Mastermind groups (23:56)
Stan has recently started new projects to aid emerging franchisors by creating educational peer groups. Stan and Erik discuss the value in these mastermind networks, how they began and how they can improve your career and life.
Emerging and established brands (27:05)
Stan pinpoints what separates a successful emerging brand from all the others. He explains how leadership, mentality, values, and collaboration allows certain emerging brands to excel.
Brand loyalty (28:36)
Stan urges new franchisees to find the brand, culture, and values that align with their interests. He stresses discovering what is best for you and your passions. He encourages any franchisee to explore the culture on the ground level before becoming involved.
Trainers and tools (32:20)
Stan states that the most imperative employee in a franchise is the trainer. He says look at what a franchisor has invested in their trainers and tools that ensure a franchisee’s success. He highlights the tools and the positions the franchisor has set up in order to decide your own involvement.
How COVID-19 distinguished the best brands (35:27)
The best way to judge if a franchisee should get involved with a certain brand is to look at how they handled Covid-19. How did a franchisor help aid their franchisee in a time of crisis? Stan says look at the behavior—it will reveal everything.
The most memorable people (40:09)
Stan talks about his interaction with Jimmy John Liautaud, whose interview stuck with him to this day. He touches on how Jimmy John’s approach to business epitomized giving back to the team and collaborating with others. To Stan, Jimmy John’s interview represented the spirit of franchising: making others and yourself successful.
Struggling franchisees (42:18)
Stan gives an analogy of planting a garden to explain how struggling franchisees can pivot to start excelling. He explains how to distinguish systemic failure from personal, and what to do once you’ve examined yourself and your franchise. Lastly, Stan and Erik discuss playing to your strengths and finding the right franchise for you, whether that is emerging or established.