DESCRIPTION:

Edith Wiseman, the president of FRANdata, discusses the changes in the franchising industry, particularly in relation to SBA loans. She explains that the SBA has changed its standard operating procedure, eliminating the need for lenders to worry about affiliation between the franchisor and franchisee. However, this has led to the SBA no longer determining whether a franchise is eligible for an SBA loan, a task that now falls to the lender. This can be problematic for certain business models, such as passive businesses, which may not be eligible for SBA loans.

Some lenders still consider affiliation a credit issue, despite the SBA's stance, and may refuse to lend to new franchises. To address this, FRANdata has developed a certification of franchise eligibility for SBA lending, which has been signed by nearly 250 franchisors. This certification allows franchisors to self-certify that they abide by all eligibility rules, simplifying the lending process.

Wiseman also discusses the number of active franchise systems, estimating that there are between 3750 to 4000 active franchise brands. She confirms that a new franchise brand appears on the scene every day, but notes that the demand for SBA loans is greatest from brands that are slightly past the emerging stage.

For emerging companies that may face resistance from lenders, Wiseman recommends joining the Franchise Registry and using FRANdata's certification to demonstrate their eligibility for SBA loans. She also advises understanding the landscape of SBA lenders and finding a financing partner that is best suited for their franchise system.

Wiseman concludes by discussing some of the eligibility criteria for SBA loans, such as the franchisor not controlling the money flow of the franchisee. She notes that while this is a credit concern for some lenders, there are ways around this issue, such as the franchisor signing an addendum that allows the lender to take a security interest in the accounts receivables.

- With Edith Wiseman

TIMESTAMPS:

● 00:00: Interview Introduction

● 00:56: Discussion on SBA Regulation Changes

● 04:08: Affiliation Concerns for Lenders

● 07:30: Introduction of Franchise Registry's Certification

● 10:30: Impact on Emerging Franchise Brands

● 12:35: Assistance for Emerging Franchise Companies

● 15:17: Clarification on Affiliation and Credit Issues

● 17:45: Other Eligibility Criteria

● 19:25: Challenges for Franchisors

● 21:00: Example of a Unique Business Financed

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

John Hewitt, an industry veteran with 5,200 franchisees under his belt, discusses his career in franchising. Hewitt founded several companies, including Jackson Hewitt, one of the world's top retail chain franchises with over 10,000 tax offices. He has also founded other franchise companies and currently runs Loyalty Brands, a platform brand with multiple sub-brands. Hewitt has sold companies twice to public entities for seven figures.

Hewitt shares that he always knew he would become a millionaire, but discovered that the journey is more fulfilling than the destination. He enjoys changing lives and plans to continue in the industry indefinitely.

Hewitt's most recent venture, Loyalty Brands, was born out of a conversation with a former employee who suggested he help other franchises grow. Despite being under a non-compete clause from his previous company, Liberty Tax, Hewitt decided to embark on a course to have multiple franchise brands.

Unlike other franchisors who focus on a single industry, Hewitt looks for franchises with integrity, replicability, and stickiness. He believes that many franchisors fail because they prioritize their own success over that of their franchisees. Hewitt's philosophy is that happy, successful franchisees lead to unstoppable growth.

Hewitt's key to franchising is building the best system in the industry and having franchisees who follow that system. Despite having brought in 5,200 franchisees, he shares that not all of them have followed the system.

- With John Hewitt.

TIMESTAMPS:

● 0:00 My guest today is industry legend, John Hewitt.

● 0:47 We've been in franchising about the same number of years, but John is an icon with 5,200 plus and counting franchisees in your career.

● 1:20 John founded several companies, including Jackson Hewitt.

● 1:51 Why such a story?

● 2:23 The journey is the joy.

● 3:15 Loyalty brands, a platform brand.

● 4:10 You have sold twice to public companies for seven figures.

● 5:00 Why not just a tax? Why multiple brands?

● 5:50 The beginning of loyalty brands.

● 7:08 The search for integrity, replicability, and stickiness in franchises.

● 8:00 The challenges of franchising and reaching 100 locations.

● 9:00 The secret to franchising: happy, successful franchisees.

● 10:10 The failure of many franchisors.

● 11:15 The importance of building the best system in the industry.

● 12:20 Personality profiling in franchisees.

● 13:30 Attitude and culture as keys to success.

● 14:20 Identifying bad franchisees.

● 15:30 Blaming others versus taking responsibility.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

Twitter: https://twitter.com/drjohnhayes

YouTube: https://www.youtube.com/c/Howtobuyafranchise

Instagram: https://www.instagram.com/hayesjph/

TikTok: https://www.tiktok.com/@johnphayesfranchise

Pinterest: https://www.pinterest.com/DrJohnHayes/

Facebook: https://www.facebook.com/franchisehotseatpodcast

DESCRIPTION:

The Franchise Hot Seat episode features Nick Gartner, a franchisee and franchise development professional for Hudson Valley Swim. Gartner shares that he was involved with Hudson Valley Swim before it became a franchise, focusing on operations at corporate locations. He transitioned into franchise development when the company decided to franchise. Gartner and his brother opened their own Hudson Valley Swim location in Stamford, Connecticut after about a year of being franchisees.

Hudson Valley Swim is a swim school that caters to all ages and abilities, teaching survival skills, basic swimming, and competitive swimming. Gartner was attracted to the franchise because its mission and core values aligned with his own. He emphasizes the importance of core values in a franchise, citing exceptional customer service as one of Hudson Valley Swim's key values.

Before becoming a franchisee, Gartner worked in franchise development right out of college. He also had experience working at Hudson Valley Swim's corporate locations during summers in college and high school. He did not play a part in the decision to franchise the business, but he has contributed to its growth through franchise development.

Gartner discusses the challenges of becoming a franchisee, highlighting the support provided by the franchisor as a major advantage. He also notes that he always wanted to own a business and chose franchising because it offered a blueprint and ongoing support.

As a member of Generation Z, Gartner shares that 80% of his peers want to own businesses and make a positive impact on their communities. He believes that owning a business allows one to control their schedule and success. Gartner also emphasizes the importance of giving back to the community, stating that his work with Hudson Valley Swim saves lives by teaching an essential skill.

Gartner explains that there are many options for Gen Z individuals to afford a business right out of college, including Small Business Administration (SBA) loans. He was able to secure funding for his business without much difficulty. Gartner concludes by reiterating the importance of community involvement and the benefits it offers.

- With Nick Gartner

TIMESTAMPS (Use ChatGPT on Transcript):

● 00:00: Introduction to the Franchise Hot Seat podcast.

● 00:21: Introduction of Nick Gartner as the guest.

● 00:55: Nick's background and involvement with Hudson Valley Swim.

● 02:45: Nick's decision to open his own franchise location.

● 04:11: Overview of Hudson Valley Swim and Nick's attraction to the franchise.

● 05:47: Importance of core values in franchising.

● 07:40: Nick's understanding of Hudson Valley Swim's core values.

● 09:21: Nick's role before becoming a franchisee.

● 10:37: Decision-making process behind franchising the business.

● 12:41: Challenges faced in becoming a franchisee.

● 14:56: Gen Z's perspective on business ownership and community impact.

● 17:30: Importance of giving back to the community.

● 19:23: Funding options for young entrepreneurs.

● 21:07: Importance of community involvement for Gen Z.

● 23:05: Discussion on stereotypes about Gen Z.

LINKS:

WEBSITE: http://franchisehotseats.com/

LinkedIn: https://www.linkedin.com/in/drjohnhayes/

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