2ndwind Academy Podcast
2ndwind Academy Podcast
123: James Hilovsky - Franchising 101 for Athletes
How do athletes' skills on the field translate into successful franchise ownership? In this episode, we sit down with franchisee broker James Hilovsky from California. James shares his unique insights on the natural fit between athletes and franchising, explaining how the structure, teamwork, and coaching inherent in sports prepare athletes for franchise entrepreneurship. You'll learn why athletes' self-confidence and risk-taking abilities often lead them to outperform their corporate peers in the entrepreneurial world.
James takes us through his comprehensive process as a franchise consultant, walking us through each step he takes to match athletes with the perfect franchise opportunities. From assessing industry interests and investment levels to choosing between owner-operator or manager-led models, James provides a detailed look at the fundamentals of franchising, including initial fees, royalties, and marketing costs. Using a hypothetical scenario of a former pro athlete, he illustrates how he guides clients to make informed decisions that align with their goals and aspirations.
Tune in to learn more about:
- The step-by-step process of launching a franchise, from that first call to signing the Franchise Disclosure Document (FDD).
- Insider tips on evaluating a franchisor’s support system and navigating the FDD.
- Why athletes have a unique edge in the franchising world, and how you can leverage it.
- How to validate a franchise opportunity, including what questions to ask existing franchisees.
- Realistic expectations, common misconceptions and pitfalls in franchising, and how to stay proactive in your business journey.
- A sneak peek into examples of franchises athletes are conquering, from fitness centers to niche services like dog poop cleanup.
- Why athletes often find more satisfaction in the autonomy and challenges of running their own business.
…and so much more!
Are you looking for Career Clarity for your next step, for more information, or to book a consultancy, make sure you check out www.2ndwind.io
Links:
Website: https://www.thefrandream.com
Linkedln:https://www.linkedin.com/company/the-frandream/
Email: james@thefrandream.com
Now being a franchise, does that mean the name is selected, the brand is selected, or am I still bringing my own brand on there as well?
Speaker 2:Great question. So the name is selected, the brand is selected. Being someone with your stature, you might be able to say to the franchisor hey, I think maybe we could do this a little bit better. Is that okay if I try that and they'll say maybe yes or no. It may be a no and it may be a yes, but I'm sure they would listen to you much more than they would to me if I was trying to start the franchise.
Speaker 1:For sure as, well, Hi, I'm Ryan Gonsalves and welcome to a Second Wind Academy podcast, a show all about career transition through the lens of elite athletes. Each week, I invite a guest to the show who shares their unique sporting story. Please join me to delve into the thoughts and actions of athletes through a series of conversations. Don't worry, there's plenty to learn from those of you that aren't particularly sporty. Elite athletes are still people after all. Let's be inspired by the stories of others. Today I have James Helowski on the Second Wind Academy podcast, the podcast that delves into the decisions that athletes make when they transition from professional and elite sport. With James, we have a quote-unquote curveball as I interview James, a franchisee broker from California Now, after a modest baseball career, he spent most of his time in the corporate world understanding and managing franchises. He joins the show to discuss how athletes make great entrepreneurs in the wide and wonderful world of franchise businesses. James, welcome to the show.
Speaker 2:Thank you, ryan, appreciate you having me on today.
Speaker 1:Absolutely brilliant. I am excited about having you on today because, well, actually, what's intriguing is this conversation really focuses less on you as the athlete and how you've transitioned, but very much on, perhaps, the transferable skills that you've seen athletes bring into this wonderful world of franchises. So you have to excuse me if I get a little bit excited and start going off in a few random tangents, but this is all about learning, so hopefully you'll bear with me as well.
Speaker 2:Oh no, no, no problem at all. Absolutely One of the big things that when looking at a franchise business, why athletes are so successful, are really because when you look at a franchise model, the franchisor provides a playbook to be successful in business. So an athlete has spent his entire life following a playbook, following coaching, following constructive criticism. So this works really well in the business world of where also they're going into business with the franchisor leading and guiding them and they're able to take that direction and just be able to have that teamwork and the team around them, not only with the franchisor that tells them, hey, how to set up the business, how to run the business, giving that ongoing support, but also the franchisees in the system. They are now part of your team. So if something goes wrong, you're going to call the franchisee down the street and go, hey, what happened with this and how did you tackle this problem. And it makes just a great fit for athletes to transition into the franchise business world.
Speaker 1:I like that. James Makes it really clear. I think the bit that gets me most is that playbook is, like you say, for many athletes professional athletes or elite athletes who are coming through the ranks it really is about a playbook knowing what it takes to succeed and what you've described. There is a franchise at least I guess a successful franchise franchisor knows that playbook knows the key steps to be successful. Is that something you recognized in athletes early on or was this something that just came about through your experience?
Speaker 2:Actually just really early on, is because it's just a such a natural fit. But what I will tell you too, in business and entrepreneurship, when an athlete is looking to you know, translate after the the cheering stop, I call it of into the business world or deciding to take a job. One of the things that athletes do have when it comes to the entrepreneurship is when I have clients that are from the professional world, that are in corporate America, the hardest thing for them to overcome is the fear of betting on themselves, of going into business for themselves and taking that step For the athlete. That's a little bit easier, because the athletes bet on himself or herself all their lives, and so it really isn't that much of a that much of a fear factor. It's like, okay, if I get a playbook, I'm ready to jump into it. So that's. Another big factor is just, athletes don't have that fear. They're ready to tackle things head on.
Speaker 1:Yeah, that's very true. Well, James, I've got so many more questions about some of those steps, but I'm keen to understand a bit more about you and sort of where you're at today. Can you just tell me what is your current role and how does it work?
Speaker 2:Yeah. So what I do is I take athletes and professionals that are out there and I basically I'm like a matchmaker, I show them all the franchise systems that are out there and I basically I'm like a matchmaker, I show them all the franchise systems that are out there. I have about 400 franchise brands that I work with really closely. So when a client comes to me I'll just we'll talk about hey, what industries do you like? And if you don't know, that's okay, we'll figure that out and we'll go step-by-step the different industries. We'll talk about investment level and we'll talk about if they want to be owner operator or do they want to hire a manager to do the day to day. And then we just kind of work with that and take their background into consideration too and then talk about the different franchises out there and what might be fits. I'll probably show them maybe five to 10 different options that are out there for them and they'll pick one or two. And then what I will do is I'll introduce them to the franchisor and then I'll help them.
Speaker 2:When they're talking with the franchisor trying to figure out if it's a great match, I help them with. You know. The next step is they're going to send you an FDD, and here's how you read an FDD, which is a franchise disclosure document where the franchisor is disclosing. Here's the fees you have to pay and the royalties that are out there, and so I'll explain that and help them with that. I'll help them with next steps. I'll help them if they need funding. I help them with lending options as well as, when you get closer to make a decision decision if the franchise is right for you I will help you with verifying that system with the franchisees. So the biggest thing is, the franchisees in the system are ones that you need to talk to to make sure that it's a really good franchise.
Speaker 1:That does sound like quite a methodical process that you take them through, you know, and I'm just trying to picture it, if anything for myself, but no, I'm just trying to picture it and can you give me an example or create an example of how you might take someone through and the steps that you do to, I guess, open them up to what types of franchise they may want to step into?
Speaker 2:Yeah. So absolutely, that's a great question. Let's say you came to me and you were just like hey, james, I know nothing about franchising, tell me a little bit about that, and how are we going to get here? And then I'll basically say you know what? Here's a quick synopsis of franchising.
Speaker 2:You pay a one-time franchise fee. Typically right now it's about $50,000. That's one time to the franchisor. And then the other fees that you pay are royalties, that are top line sales, and a marketing fee, which you would pay that anyways to market your business. So you might go well, why don't I just do that myself?
Speaker 2:Well, the reason why you're paying these fees is they're going to give you not only that opening support, but let's say you wanted to have a brick and mortar where you are doing a retail location. They're going to help you find that location. They're going to help you, give you all the specs to build it. So they're going to really help you set up the business as well as be out there for your opening, give you the training.
Speaker 2:If you are in a HVAC business, you don't know anything about HVAC, that's okay. They're going to teach you how to do that and run the business and who to hire. So they're going to give you all this and give you that playbook and then, while you pay those fees, you have that ongoing support. So that's the first step of understanding a little bit of what franchising is. And then, when we talk about the different industries, I'll say Ryan, tell me about, do you want to look? Do you want to be an owner operator where you're in the day-to-day, or would you like to hire a manager to do the day-to-day? And we'll talk about the industries that are out there and we'll talk about hey, you know, do you like dog grooming?
Speaker 1:Okay, well, let's take this one right. So let's try and make it real. So it's me, and I myself, former athlete. I'm coming out of playing pro football, pro soccer, and someone said how would someone know about this? Because I'm thinking what on earth am I going to do? How would I get introduced to you, james?
Speaker 2:Well, I get really introduced. We would. We would have played golf on a golf course, that we would be introduced and we, I would have talked to you about that.
Speaker 1:Quick. Oh, that'd be really long. As a, I'm probably going to be a hundred over par, so so, ok, so we've had a long chat on that golf course, and so me, as a soccer player, I'm like, ok, hey, james, yeah, I'd love to know more and get into this. What would we do then?
Speaker 2:Well then, what we would do. I would explain what I did about the franchises there and then we would talk about well, what are your goals? Like, what are your goals when it comes to business ownership? I know you're transitioning from the field, but kind of, what are your goals? Are you looking, maybe, to do something that you're going to throw everything in and you're going to be in it and do the day to day?
Speaker 1:I'm jumping all in. I want hands on. This is me, because that's all I know.
Speaker 2:Perfect, yeah, okay, that's great, and the franchise is going to help teach you that. So let's now say that, now that we have that established, what do you think that you would would you like to do? Start with one unit, or do you think that you would like to maybe do two or three units or territories, or that? Would you want to do multiple territories or just one?
Speaker 1:Well, I think what I'd say is I know where the stadium is, the fans are around the stadium, so I want to do the area that is in that stadium, because people are going to know me. So maybe that is that, maybe one or two territories, so quite.
Speaker 2:so it's local yeah, maybe right, yeah, we do one or two and then maybe, you know, expanding after that for sure. Then okay, so we got that.
Speaker 1:I'm happy to start in at the bottom, because that's how I did in my career, but I don't want to go to the top. I'm going to take I'm talking domination afterwards, but for now I'm good starting and I'm humble.
Speaker 2:Perfect, oh, that's great. Now we got to figure out. Let's talk about investment level. An average franchise total investment this is including the franchise fee. An average franchise total investment this is including the franchise fee. Build out everything. To get started. You're talking would you be comfortable with 200K and below, or 200K and above, or do you have a number in mind?
Speaker 1:Let's go below. It's going to be below 200K. I think you said it starts at maybe 50K earlier on, so let's say, okay, I'll invest 80,000. Does that sound like a good number?
Speaker 2:Yeah, 80,000. We can work with that Absolutely. So one of the things that I will tell you is, right away, being an athlete I'm sure you've heard of Shaq. That has been just great at franchising and he does a lot of food right. So what I will tell you is that restaurants are the biggest investment of them all. You're probably looking at, you know, 600k to a million dollars for that investment. So we were ruling those out. We're going to look what's called of entry-level franchises not saying they're bad, but they're going to be. It's going to narrow the field down a little bit, but we can have some things to work with, and that's probably going to be. It's going to narrow the field down a little bit, but we can have some things to work with, and that's probably going to be in the service industry of, you know, home services or something like that hold on.
Speaker 1:Do you mean like I might have to use my hands because I'm a? I'm a soccer player, which means I'm all feet.
Speaker 2:So if if we're talking hands, maybe do I need to increase my investment well, you know you might need to, but no, we, we can, we can work with that. We're just we're. You're going to have your crew's going to be doing the work, because you're going to be running the business. You're not really going to necessarily be doing the day-to-day, you're going to be doing the hiring and and then the uh supervising of your employees building the team, a bit like I'm the captain one of the things I'm first going to tell you about.
Speaker 2:Yes, exactly, exactly like you're the captain and you're going to be running it just like you were back on the field.
Speaker 1:I can do that. That sounds great.
Speaker 2:Putting aces in their places and running the business.
Speaker 1:That's it. I like that.
Speaker 2:Let's go there really like to kind of look at high margin franchises because for myself I really like to take my clients to something where they're going to make money and I don't want to get you into a hobby. I want you to have some money that we could get a second territory or maybe even build generational wealth. So one of the things I'm going to suggest to you now at our investment level that's out there I'm going to say just have an open mind. But one of the things would be a franchise that picks up dog poop, dog waste. Now you're going. I don't want to do that.
Speaker 1:Go on, keep going, keep going. I like this.
Speaker 2:But your team, your team is going to do this and this particular franchise. What they do is they help you get all the residential customers that are out there and they help you set that up and they really your biggest job is going to be able to go out into the community and talk with people in the HOAs that are out there to secure those business. This particular business does not require a brick and mortar, since that's going to be kind of tough where the investment level we want is at. And this particular business, the margins on this are about 30% margins and what margins mean is if you do $100,000 in the business, you would look at probably $30,000 profit would be the margins and this particular business has the potential in a territory to do $200,000 to $400,000 a year. So those margins are pretty strong. In that way, in that investment you typically would have your investment back well within two years. So that would be one of the options.
Speaker 1:So it's interesting, but I'm thinking, okay, dog poop, now maybe that's not for me. How do we go about finding other options? Because, well, I'll tell you where I'm at at the moment, james is. It's interesting because you're at least opening, understands a financial level, or at least the opening understands a financial level, financial investment as a starting point and the area that I want to work with. To what extent do you go through? What am I interested in, or value, or those types of elements? Is that now or is that a later thing?
Speaker 2:No, that's still now. That would just be one that I would highlight, just because I want to get your mind thinking. Okay, and let me kind of open up my mind here. Then I would tell you you know, we can look at the automotive industry. So our investment level in the automotive industry we're probably looking at doing like fleet washing or mobile car washing in the automotive industry, and so those margins are pretty good. You don't? It could be home-based and you just have to have the truck and the equipment. So that would be an option and you would go maybe, james, maybe that's right.
Speaker 1:Do you know? What I'm thinking is? These ones are really interesting. I get that. I can see how, for that amount of investment, it sounds like things can get up and running just for those two options that you gave there. Let's go for picking up dog poop, right. Let's say that one is I'm interested in For me saying, yeah, that's something I could work with. Typically, how long is it until I'm picking up the first dog poop? What's that sort of timeline for those types of firms for me to be saying get going?
Speaker 2:Well, let's say, with that, I was going to hit you with some different ones that I think you would be interested in, so let me go to those first, before we go to dog poop. Okay, so this particular one, which would be right up your alley. This is a franchise that teaches kids how to play soccer. That's all they do, so it is teaching the youth how to play soccer. It's organizing soccer leagues right up your alley that I think you probably would definitely enjoy. I wanted to give you some different options out there, but I think this would probably be the best fit for you. Some athletes just say, yeah, I don't really want to do that anymore. I kind of walked away from the game, you know. But this one might be something to where you're working with the youth, you're giving them skills and you're working from, you know, from K K, all the way on up to high schools, as well as running and setting up weeks.
Speaker 1:Okay, so now that sounds like something I know I can do, but what is then interesting is the idea often, as athletes, we'll we'll leave and we'll set up our own coaching capabilities and we start with one or two people. What is it about buying into a franchise? That would accelerate that process for me.
Speaker 2:So, yeah, so you're saying, well, hey, man, I already know how to coach, I don't need this Right. So what the franchise is going to franchisor is going to do is well, I know you're a great soccer player, I know you know everything. You know that there isn't to know about soccer, but what about teaching the preschoolers? You know what would you teach them?
Speaker 2:I'm sure you do have some goals, but we have this program that we've worked and proven and we have it step by step. Really, it's not really for you to teach because I mean, yes, I'm sure you'll go out there and teach, but it's for your team and your crew to help teach the kids. So we're going to give you this manual and give you the step-by-step here's how we're going to take this age group and teach them how to play soccer, and here's who we need to talk to to grab our customers, and here's where you need to go. So all that will be laid out of not only teaching methods but where to go, get the players and get the guests and customers that you need to sign up.
Speaker 1:I like that. Okay, I see that's it and it is kind of a well, it's the playbook, it's what will accelerate me in moving forward and probably considering things that I'm not aware of. I'm good on the field, but everything else that goes around it, that's probably the things that I'm not aware of.
Speaker 2:I'm good on the field, but everything else that goes around it. That's probably the bit that I'm missing, Correct? So now let's say hey, James, you know what? Let's maybe table the dog poop. Let's kind of put that back.
Speaker 2:Burmer, Let me find out first about the soccer franchise. So what do I do without that? So what would happen then is I would introduce you to the franchisor and with the franchisor, now I've handed you off, the franchisor is going to give you Ryan, here's our marketing. Here's kind of how we're going to lay out the playbook. Here's kind of how we're going to look for locations. Here's how we're going to help you get those customers. They're going to give you that big, deep, encompassing dive of that first phone call. And then what they're going to do is they're going to send you what's called the FDD, which is a franchise disclosure document, and in that document it'll have all the fees, basically what the range is of what the cost would be to set up the franchise. And then what they'll do is say, hey, we're going to have another call and you set that up with the franchisor.
Speaker 2:Now, between that call with the franchisor, I'm talking to you about, okay, how'd the call go? And you go this is something that I liked or didn't like, and we probably would have that conversation. You're going well, James, I'm thinking I might be able to do this on my own, and maybe not with the franchise and I would go okay, well, let's look, and how are they going to support you? Did you feel that you were going to get great support from them, something that you couldn't do? And you probably are going to go. Absolutely, I think they're going to be able to help me much better with the marketing and capture the customers. So we talk through what's that franchise look like and then I'll give you a guide on how to read that FDD, so you know how to read that.
Speaker 1:Yeah, I was going to say how looking for. So you are as much as much guiding and supporting that individual in supporting me to sift through this information and figure out. Okay, is this the right choice for me? Is this appropriate for what? Where I want to be.
Speaker 2:Exactly. And then it would come down to you would have that next call the franchisor. They would go over a little bit more deeper about them. You would answer questions you might have on the FDD and then they would say okay, now you're to validation stage, so you could call franchisees in the system. So then we come back and have a phone call and they'll go hey, here's a little guide of who to call and what questions to ask a franchisee.
Speaker 2:What kind of support did you get? How long did it take you to get profitable? And the big question that you want to know is you know, would you do this again? And they might tell you well, no, we would just do it on our own. But most of them are going to say we would do it again. And I would tell you to talk to as many as you could, because of course you're going to get people that are dissatisfied and just expected hey, I'm just going to sign up for the franchise and they're going to do everything for me and I don't have to run my business, which that's a pitfall when you're in a franchise system. You still have to run your business to be successful.
Speaker 1:Yeah, Okay, I think I'm sold on this idea. I think the coaching is the soccer. Coaching sounds like it's something I should do Now. Being a franchise, does that mean the name is selected, the brand is selected, or am I still bringing my own brand on there as well?
Speaker 2:Great question. So the name is selected, the brand is selected. Being someone with your stature, you might be able to say to the franchisor hey, I think maybe we could do this a little bit better. Is that okay if I try that and they'll say maybe yes or no. It may be a no and it may be a yes, but I'm sure they would listen to you much more than they would to me if I was trying to start the franchise, for sure as well.
Speaker 1:Yeah, so so it might not be called Ryan's soccer clinic, but it could take their name and we may play around with how might my brand influence it, given this is a soccer clinic just outside the stadium, where, let's assume, all the fans know me and love me?
Speaker 2:So I mean, they call it may be called Soccer Stars, so that's actually the name of the franchise actually, so it would be called Soccer Stars there for sure. So so that's kind of what we need to do. And then your other question was well, how quickly would I do that? So that process probably is going to take us 30 days or more on a, because there's not a lot of moving parts. You know, we're not looking at doing, we're not looking at doing a brick and mortar location or anything it's. It could be home base, so it could it could be up to start fairly quickly. It could be home-based, so it could be up to start fairly quickly. What does have to happen, though? You have to have that FDD in your possession for 14 days, because you know it's much like you have to have time to digest that and to review it, so they can't officially sign until you've had those 14 days looking at it, love that.
Speaker 1:Okay, all right, that's good. It's like a cooling off period, if anything, so you can tell I'm quite excited about this. But it's like, okay, still 14 days, just chill. Just make sure you understand everything that's going on.
Speaker 2:Just chill. We need to do our validation. We need to look a little bit deeper and make sure that this is a great fit and that the franchisor is going to give you all that support that they say they're going to give you. And one thing too, during this a lot of people don't know this I would say you know what, ryan? When we're coming down, you say, hey, james, I want to do this. I said OK. Well, why don't we ask for six months of free royalties where they don't charge the royalties while we get launched? And sometimes they'll say yes and sometimes they'll say no, just kind of depending on the particular franchise. But it's always good to ask to get something to sign and to get that little jumpstart. Most of the time, they'll honor of not having the royalties right off the bat because, at the end of the day, they want you to be successful.
Speaker 1:Okay, Listen, it sounds like it's a good, you know a good idea. And look, franchising. You know we're having this because it's you know, it's somewhat real, as I'm there and I'm thinking, okay, there's some other crazy ideas that I may not have even considered. What's the difference in this process that we've just gone through, to say, if I was in the 200k and up and there was a property or a retail site that was included?
Speaker 2:what additional steps might we have to go through?
Speaker 2:So the additional steps we would have to go to to get it launched, in that we would, we would have to find a brick and mortar. So the franchisor, after you sign the agreement that you're going to go with them, we're going to have to find that site and they're going to help us, help us. Now I have had some clients that have found their site and then the franchisor still has to approve it, but where they've said, hey, I already got the site. This is what I know and then the franchisor will go back because they want to take a look at the demographics, the household income, what is the surrounding area? Is it going to be a fit for the business? If they say yes, it's approved, and then you can go negotiate lease and those things and the franchisor will kind of guide you a little bit on that. Now, if you're letting them find it, sometimes it can take a few months to find the right fit that both parties agree on, so it could be a little bit longer to get that up and going.
Speaker 1:That's great, james. Thanks for that. That's good. That gives me that bit of clarity and hopefully those listening on how we might you know, one might go through that process and it all starts with a really bad game of golf is perhaps one of the ways to do that.
Speaker 2:Yes, exactly, it starts with a bad game or go, or we meet on on LinkedIn or we meet somewhere. But yes, it definitely is a good. And you know one of the other things too, that I've taken athletes through the franchise system and some of them go. It's not for me. I'm just, I'm more of a athlete that kind of likes to do things on my own and I might not want to be restricted through the. What the franchise is is offering me, and I want to have the say of the name and the products and everything, and and then really, you're probably not a good fit for a franchise because you don't really want to follow a system. So that and and that's fine, and and that's not a fit, and that's okay well.
Speaker 1:So I guess on that I'm interested a bit. You've got corporate experience and franchise experience. What is it that would make you see athletes more suited to franchise businesses rather than going into corporate?
Speaker 2:I really think the athlete is mindset, truly is entrepreneur mindset, of either you know in sports, or you have a team around you which you can build that into the franchise world, like you were just saying it's going to be.
Speaker 2:You know that's I'm going to be the captain and that's exactly how an athlete will run their business, just like if they were the captain. Here's where my aces go and they really get the sense in business too, of hey, I'm back in my playing days Now, I'm just being like the manager or the captain and putting people where they're supposed to go and running it. So I really believe that that mindset, and just the mindset of bet on myself, and I don't really see that a lot of athletes will go into corporate America and they'll get bored and they always, you know, they'll kind of get a little bit bored. They're not challenged and at the end of the day, I think an athlete far can see. You know, why am I making this company tons of money when I could probably go out and do this on my own and why don't I just bet on myself and make money for myself or you know that generational wealth for my family?
Speaker 1:Yeah, I mean that's interesting because at least it's thought provoking, because you, you talk there about that entrepreneurial mindset and, if anything, it's a mindset where athletes are used to having to perform and push themselves and what a franchise it sounds like gives them is the opportunity to do that. But with a franchise, it sounds like gives them is the opportunity to do that, but with a framework. With a framework, a game plan that may enable them to keep the entrepreneurial mindset and build something, whereas that corporate environment, whilst they can progress and there's still a framework, it's less entrepreneurial. You're actually following a much prescribed plan and you know overly, perhaps overly tactical in terms of what you're doing. So it lacks that creativity.
Speaker 2:Absolutely. And another thing really where athletes are really great about is when they because in business you're going to have peaks and valleys and when you're in the low of low, athletes kind of know how to pick themselves up of when maybe if the business is kind of going, you know just a little bit sideways. Athlete has been in this situation before in their playing days of I haven't scored a goal in. You know how many and you know I have a wide open net and I miss it. You can work through. You know how many and you know I have a wide open net and I miss it. You can work through. You've worked through that. You know how to push yourself and go okay, I believe in my abilities and I know that I'm going to right this ship. I just got to keep at it and keep at it and keep at it and I think that tenacity also is really really helps an athlete into the business world.
Speaker 1:So, given that, when is the best time for an athlete to start exploring franchisee ownership?
Speaker 2:So I would say for an athlete that wants to explore, obviously when they first retire, but it really. I have a couple NFL football players right now that are looking and they came to me and said, james, I want to play three more years in the NFL. That's what I'm thinking I got, and when I'm done I want to walk away from the game and have something to walk into. I'll hire a manager to run my franchises, but I'm looking to walk into the potential of a half a million dollars that the business is earning me. And this particular athlete wanted a gym. So I said, ok, well, we need to do a three gym deal, like three units, and let's do one your first year, build the second one year, number two and the third one year, number three, and by that time you'll have all three functioning when you're ready to walk away from the game and you can walk into that hurdle that you want to get into.
Speaker 1:Now that's a great story One, because the athlete there has this vision. They're able to look and perhaps accept how long left they're going to have as a professional athlete. But what is also interesting is they got to a number. They had a number that they know they want to earn or to live off to create their lifestyle when they do retire, and by having that conversation you're able to set things up to at least have a plan to keep that number or to get to that number by the time they retire.
Speaker 2:Absolutely. So I think really it's that foresight and planning. Now, sometimes you know the cheering stops when you didn't expect it to and now you're just trying to. I mean, so, right now you know it's NFL training camp and I do have athletes that are like well, james, I want to play this year, I want to do a franchise, but I don't know where I'm going to be. I don't know if I'm going to be on the team in Green Bay or if Green Bay, if I don't make the team, I might have to go to Miami. So I have to table this until I figure out one, where am I going to play and two, when I'm going to have the time to do that.
Speaker 2:So I understand that there are limitations and things like that. I might go that there are limitations and things like that. I might go. Well, where do you see yourself when your plan days are done? Living, and they might go well, my wife or fiance from Texas, so I can see that. Then we go okay. Well, do you have a support group in Texas that you would trust to run your business? So let's just say it doesn't matter what happens, but do you have someone there? And if they say no. Then we go, okay, well, we do need to table this for a little bit. But if they go yeah, you know my fiancé or my wife's, you know brother, he could do it. And we go, okay, well, let's talk about looking at a franchise in Texas and have him run that and be your support, and oftentimes they're like, okay, that's a good idea, let's, let's start looking at that. So I kind of help them plan in that regard as well.
Speaker 1:Right, you know it's um. It is interesting because it's like business management or business advice that's been provided and I use advice, business guidance that's been been been provided there, but there are cookie cutter examples of how to make it successful. It's less about them coming up with the idea and driving it themselves, but perhaps it is coming up with the idea but then giving them a formula to make it happen. Like you say that NFL player looking for a gym, it's like I'm going to set up a gym now. He could do that, but by setting that financial figure you can give. Well, here are some of the steps, here are the number of gyms that you would need to open in order to get that, and here's here are the numbers that you need to be profitable.
Speaker 2:Exactly, and that's the whole thing of hey, you know, what are we looking at? What? What kind of lifestyle are you looking? And we kind of tailor, make it to that as well, definitely, and so you know. I guess really the question is, you know, when is the best time it's possible? And I understand, sometimes it's not possible because we don't have the support system. I have several clients that are overseas nba basketball players and they want to do something in the states, but they just they don't have the support group here and it's something we're going to have to wait on that support group.
Speaker 1:I hear it so often, for when athletes retire, one of the most important things is to have that support group around you. Who've you got in your corner, in your team? And that's just as important here. And you know, interestingly, I just had a podcast around joining a family business.
Speaker 2:In some respects, that support group and each example you've given which makes me think it must be normal relates to a family member, or at least a close friend, but a family member helping to set up and run this thing as well exactly and that and that's really, that's really really key and the thing that, uh, shaq is now has a big corporation and he has an amazing team and and you know he could do anything that he wants because he's got that, that great support and that big team around him for sure yeah, I suppose.
Speaker 1:just a last sort of few questions have you seen examples, or do you have examples, of where athletes have gone into franchising but have done it to support a cause that they perhaps have believed in or something that they've come across, so that it's not just a straight boom, here's the, here's a revenue making, cash rich business, but has been perhaps cause or purpose related as well?
Speaker 2:Yeah, I had a, an NFL player who had a business. A retired NFL player had a business that he he was. He was already entrepreneur, but he's like you know, james, I want to look in the franchise world. He was in the wine business. He's going. You know, I'm kind of tired of the wine business. I kind of want to get into something a little bit different.
Speaker 2:And we looked at different franchise options and you know, we looked at, you know, dog grooming gyms, muscle recovery studios, iv drips, you know you name it. We looked at all those and he was like, yeah, that just isn't, you know, it's good, but I think I'm just going to stick with what I got. So I'm like, okay, but really the next day he's like, james, you know, this is what I want and I want to do something that will be in the mental health phase, where a franchise that will help people that have addiction, that maybe have suffered from CTE issues, that's what I want. So we found a franchise that does that and he loved it. And he put one in Florida and he said you know, my ultimate goal really would be to put one of these in every NFL city. So that was definitely like his cause that he wanted to help out, and so not only is it a business, but it's a cause for him as well.
Speaker 1:That's a great story. Yeah, thanks for sharing that, because I do think that is important, and it's accelerating for purpose business just as much as accelerating a for-profit business, so it's wonderful that those options or opportunities certainly exist there as well. Now, as I say that and it does then lead me to another question, which is in terms of you mentioned margin at the start and what would be an, I'm going to say, reasonably outlandish business that has a very strong margin that people will just often look past.
Speaker 2:Dog grooming. It really, you know, when you think of franchises you don't really think of dog grooming, of people taking their dogs to groom Margins over 30%. There's one particular franchise they have it where it is kind of like a car wash. You can. It's a subscription-based model. You pay a monthly figure to get your dog groomed. I think it's like $70, $80, right, you can take it as many times as you want, and so the franchise has all these dogs signed up, much like car washes, and it's reoccurring revenue and it's easier to keep employees because when people are going in to get their dog room and they pick up their dog, they're actually tipping more because there's no money out of pocket because they've already paid it. So you know you have happy employees and the margins are really super strong because it's a building that only is like 1200 square feet and it is one that you go gosh. I never would think that dog grooming would be a great franchise.
Speaker 1:I'm going to have to get over my allergies and get into dog grooming. This is it.
Speaker 2:Exactly right, a hundred percent.
Speaker 1:James, listen, that is great. I suppose one sort of final, real final question is you know we've spoken about when's a good time for athletes to begin, and it's, you know, certainly when they're playing, perhaps towards the end of their career, but whilst they're still performing or acting. You know, what guidance would you have for any athlete who is thinking about, you know, finding a franchise or, you know, setting up their own business? What guidance would you give to them to sort of approach that thinking and decision-making?
Speaker 2:Yeah, I would just say one athletes usually don't have the fear, but let's put the fear aside, let's bet on yourself. There's a lot of athletes that come out of playing the cheering stopped, they're depressed, they feel they don't have any worth left anymore. And I would just say you know you, you definitely could get into a business, you have the entrepreneur spirit. Let's get up and find something that would be where we can put passion into and your playing days can be recreated into your business. And if it's franchise business or not, your playing days can be recreated because you'll be that general manager, that manager, that coach, that leader of the person that you were and are. Because you know you still are that person that was that athlete and you still have incredible, incredible talents. To you know, use, and I would say, use it in the business world.
Speaker 1:James, that's brilliant For those who want to perhaps get in touch with you or follow your story. Where can they find you?
Speaker 2:For those who want to perhaps get in touch with you or follow your story. Where can they find you? So yeah, they can find me. Thefrandreamcom is my website. They can email me at James at the Frandream or, you know, check me out on LinkedIn. Let's connect and let's talk.
Speaker 1:James, I want to say a massive thanks for joining us on the show today.
Speaker 2:Really appreciate the chat and feel like I'm ready to start my franchise. That's great news. That's great news. That's great news. Thank you so much for having me. It was a great time and I really appreciate it.
Speaker 1:Thank you for listening to the Second Wind podcast. We hope you enjoyed hearing insights from today's athlete on transitioning out of competitive careers. If you're looking for career clarity for your next step, make sure you check out secondwindio for more information or to book a consultation with me. I'd like to thank claire from betty book design, nancy from savvy podcast solutions, and cerise from copying content by lola, for their help in putting this podcast together. That's all from me. Take it easy until next time.
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