The Franchise Revolution: Building Wealth with Proven Systems with Cliff Nonnenmacher

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The Compassionate Capitalist
Show empowers entrepreneurs and

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investors alike to create wealth
with passion and purpose.

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Join Karen Rands, a best selling
author, for insights on Angel

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investing, crowdfunding,
business growth, and wealth

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creation.
As a seasoned entrepreneur and

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investor herself, Karen engages
in dynamic conversations with

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industry leaders, successful
entrepreneurs, seasoned Angel

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investors, and venture
capitalists as they share their

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proven strategies and lessons
learned.

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Once you listen, you will
understand why this podcast is

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Subscribe and share and be a
catalyst for the compassionate

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capitalist movement.
There's no giving up and a

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little in back and you must keep
an open mind and you try your

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best just to leave your track
and do not fall too far behind.

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Regret is for the faint of
heart.

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In the end, it's all the same.
Take what the wise I've got to

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impart.
These are the principles of the

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game.
The principles of the game.

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These are the principles of the
game.

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Welcome back to the
Compassionate Capitalist Show,

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where we explore how smart
entrepreneurs and informed

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investors create wealth,
opportunity, and impact

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together.
Today's conversation is one I'm

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personally excited about because
it hits on a question I hear

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constantly from both sides of my
audience, entrepreneurs and

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investors.
Should I start a business from

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scratch or should I buy a
franchise?

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Or for the investors, is
franchising a real a real asset

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class or how do I assess the
opportunity?

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When you're thinking about
owning A franchise yourself or

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you're looking at franchising as
a scalable investment strategy,

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today's guest is going to
completely reframe how you think

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about this industry.
There's a big difference between

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building a startup that is a
market participant, where you're

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fighting for visibility in a
crowded space, versus building

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something brand new as a market
maker with all the risks and

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unknowns that come with that.
There's a value of being a

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market participant if that's the
kind of business that you want

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to be in and having the systems
and the brand.

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And much of what we're going to
talk about today that franchise,

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the whole concept of franchising
or as a franchise brings to the

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table, you get a proven system,
collective intelligence, brand

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strength, operational playbooks
and a dramatically lower failure

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rate that my guests shared with
me earlier, about 17% compared

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to a much higher failure rate
for first time entrepreneurs.

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But franchising also has its
nuances, legal frameworks,

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funding strategies and pitfalls
that most people don't see

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coming.
And that's why I wanted today's

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expert on the capacity
capitalist show.

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My guess is Cliff not a not a
mocker.

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The founder of Fran, Fran, it's
not going to make now we've gone

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through this.
This is so funny.

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We went through this.
I practiced and here I am

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getting tongue tied.
It's the subliminal like, oh,

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don't do it wrong.
Cliff Nonimacher and founder of

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Phrenosity.
That's right.

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OK, and one of the most
respected voices in the

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franchising industry.
Cliff's entrepreneurial journey

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started at 8 years old selling
golf balls at local golf

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courses.
And at 19, he created one of the

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first food delivery
subcontracting businesses for

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McDonald's decades before Uber
Eats.

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He went from early ventures on
Wall Street, becoming an

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investment banker at what was
Solomon Smith Barney, now Morgan

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Stanley.
And in 2003, he made a massive

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pivot into franchising,
acquiring the master franchise

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rights for New York and
Connecticut.

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And since then, he has owned,
operated, scaled and developed

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brands across the US and
internationally, from Cartridge

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World and a personal training
institute to Pure Clean, May

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Ride and a few others that you
would recognize.

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He's also the host of Pursuit of
Profit, one of the most listened

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to podcasts on the franchising
sector.

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And I don't even know if this is
the first podcast since his book

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became a best seller.
But beyond the brand, the

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Entrepreneur's Guide to Fearless
Franchising is really creating a

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buzz.
He has personally guided

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hundreds of owners and investors
using real data, real operating

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experience, and no fluff
approach that cuts through the

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noise.
So welcome to the Compassion

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Capitalist show, Cliff.
What?

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What an intro.
What an intro.

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Thank you, Karen.
Really happy to be here.

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Yeah, same.
It's good to see you again.

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Thank you.
So let's start at the beginning

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because your story is
remarkable.

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You went from early
entrepreneurship to Wall Street

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to becoming one of the top
master franchisors to franchise

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developers in the country.
So take us back.

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What was the moment when you
realized franchising was the

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path that you would use, that
you could build wealth on only

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for yourself, but for others who
wanted to have a proven system

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to follow?
Yeah.

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So that introduction, as you
quite rightly mentioned, was

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that 2003 pivot from an
investment banker and then

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saying, hey, I'm going to become
a franchise, a master

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franchisor, which is an
interesting play because most

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people would not do that.
Most people just start with a

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small investment by a single
unit and see if they like it.

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I ended up going very high.
Master franchising is 1 level

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beneath the franchisor.
So for the audience like what?

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What is the difference between a
a master or a franchise?

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The master has the rights to the
entire territory as you stated 2

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states which is massive.
There's a huge investment, but I

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also have the right to sub
franchise so I could sell Karen

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a location somewhere in my
territory, keep half of your

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franchise fee, support you and
keep half of your ongoing

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royalties.
So that's where a master is very

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similar to the franchisor is
that I share a royalty

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collection where a franchise
only pays royalties.

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The master collects royalties.
That's the differentiation.

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So there, let me make sure I
understand that.

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So there.
So when a franchise is set up

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and they have, do they all have
masters and then so OK, so but

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there's like a three tiered
system if they have.

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Masters, I'll give you the
hierarchy.

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That's a great statement, right?
So the hierarchy would be from

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the top to the bottom.
The top is the franchise or we

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created the concept.
We only the IP.

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We have a federally registered
mark.

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The mark is ours.
It's our system, right?

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It's our brand.
Next would be the master.

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The master would buy a county, a
state, a country.

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When you think about AUS based
brand, how does AUS based brand

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expand in Germany?
They would sell Germany to a

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massive investor group and let
that master expand the brand in

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Germany or overseas.
So master franchising is used

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heavily internationally, which
brings us to Cartridge World.

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Well, how did you get the
master?

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It's from Australia, so it's
reverse mastering.

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They're from Adelaide,
Australia, So I bought the state

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of New York and the entire state
of Connecticut with my business

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partners.
OK, so franchisor, master

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franchisor.
Next would be area.

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Someone that may own a county
and they're developing multiple

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locations.
Under that would just be a multi

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unit owner.
Maybe 3 to 5 locations for a

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multi unit and then a single
unit owner.

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So you either own a unit, you
either own a few units, you

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either are developing an area
like a county where you own

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several units, You're either a
master or you're the franchisor.

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That's kind of the hierarchy of
franchising, in my opinion.

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The single greatest wealth
creation methodology ever built

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on the planet.
It's almost a trillion dollar

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industry.
It's massive.

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For to be the masterpiece, the
level of franchising in general.

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I think I think franchising is
the single greatest methodology

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ever created.
Sure.

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For what?
For creating wealth and being a

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business as just an ordinary
person.

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Yeah, we're going to yeah, we're
going to dig all into that.

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It's but you triggered something
that I want to ask about.

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It's it's interesting you
prepare all these questions, but

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then we're having a
conversation, which is what's

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interesting because you know, we
want to that's the whole reason

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why the people listen to this is
because you just don't know

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what's going to how, what little
golden Nuggets are going to come

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out.
So when because this is this

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kind of goes to that whole like
with somebody starting up a

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franchise or they're starting a
business and you know, I and

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certain businesses, well, let me
ask do are there certain

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businesses or sectors or
industries that don't fit a

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franchise model?
You know, I'm guessing if you're

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inventing something new and
creating a whole new market, but

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then it's still, you know,
sometimes those new markets or

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the new solutions, a way that
it's delivered is the franchise.

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It's becomes the unique
franchise.

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So you know, I the reason why
I'm asking, I was leading into

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asking that is like do when
you're, if you're, let's just

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say traditional types of
franchises, like do you decide

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when you like?
OK, I've got three locations

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that I'm running as a small
business owner and now I think I

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want to franchise it.
I need to set up the levels like

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you just talked about or do it
do.

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Can you go back later and add
master and whatever you want in

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there and it's not too
disruptive or do you have to

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have that blueprint from the
beginning?

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Do people choose because why
would a franchise or not have

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master franchising?
Yeah, well, they don't, because

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they don't want to give up.
Royalties are the name of the

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game.
So no one wants to give up

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royalties, right?
You don't want to split, you

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don't want to give up 50% of
your royalties and franchisor

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can get a 10 to 15 time multiple
on EBITDA.

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You want to collect that
royalty, it's worth a fortune in

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the future for future
development, expansion,

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acquisition.
So why would you not want if

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you're a franchisor, why
wouldn't you Fran create a

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master?
Because you don't want to give

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up your royalty collection.
You want to control the brand,

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you want to control the support,
you want to control your

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distribution channel.
You want to control where you

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develop and you want to keep
100% of the royalty collection,

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which is the lifeblood of a
franchisor.

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That's how they make their
money.

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OK, so within that same context,
but clearly if you if somebody

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in the cartridge world example
you're in, it's out of

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Australia, they don't have feet
on the street here.

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And so they're, but they're
looking you as a as a have to

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put a lot of money in to
cultivating and developing it,

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paying for.
That's right.

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You're, you're spending money
that they don't have to spend.

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So it's the I'll give up a piece
of my profit because this other

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person is going to invest in it.
And then I guess it goes

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contractually on what that the
requirements are.

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That, that's exactly right.
They're bringing in a ton of

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cash on one transaction.
It could be hundreds of

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thousands to obviously millions
when you're buying massive

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territories, usually pay per
capita.

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We're talking about something
that is not that common.

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It just happens to be how I
entered.

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And that's kind of what I said
to you.

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It's not a common way to enter a
franchise.

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And most people, if you, yeah,
if you lined up 1000 people and

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said, what was your first
introduction to franchising,

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they'd say, I bought 1-2 units
and I scaled it like period.

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So this is a really unique way
of entering franchising.

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So I prefaced that.
But you're right.

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The franchisor in Australia
brought in a ton of money.

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They, they got me, my team, my
business partners.

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We then spent money to acquire
leads so that we could close

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more deals and sell more
locations.

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Part of the agreement is that
you must own a flagship

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location.
So if we not only put the

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footprint in there, right?
So you think about the force

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multiplying effect of selling
masters throughout a country and

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demanding that each master
perform these certain roles and

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make certain investments.
And meanwhile back in Australia,

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00:12:38,200 --> 00:12:39,920
they're like, we're just
bringing the money in.

231
00:12:40,200 --> 00:12:43,440
We haven't spent any money yet,
but now we we need to hope that

232
00:12:43,440 --> 00:12:45,160
we hitched our wagon on the
right people.

233
00:12:45,280 --> 00:12:46,920
Sure.
Do we have the right people

234
00:12:46,920 --> 00:12:50,560
though?
And of course there's language

235
00:12:50,560 --> 00:12:52,640
in the contract.
There's a development schedule

236
00:12:52,800 --> 00:12:54,720
and they can terminate if you
don't perform.

237
00:12:55,240 --> 00:12:57,400
They can take the territory
back, sell it again.

238
00:12:58,080 --> 00:13:02,000
Very common.
So sticking on the on the

239
00:13:02,000 --> 00:13:06,040
investor side for a moment, are
there key metrics or indicators

240
00:13:06,040 --> 00:13:10,440
that you think when you, because
you advise both sides, somebody

241
00:13:10,440 --> 00:13:12,800
that's investing that?
We'll talk a little bit about

242
00:13:12,880 --> 00:13:17,120
fronosity for a second.
You know what, what you're, what

243
00:13:17,120 --> 00:13:19,520
are you advising?
Are you advising the people

244
00:13:19,720 --> 00:13:22,520
wanting to go into masters,
starting up a franchise?

245
00:13:22,720 --> 00:13:26,200
All the above?
The core competency is helping

246
00:13:26,200 --> 00:13:31,160
an investor navigate franchising
to identify the right business

247
00:13:31,160 --> 00:13:33,400
to buy right the right
franchise.

248
00:13:33,400 --> 00:13:37,520
So I only focus on franchising
when it comes to advising

249
00:13:37,520 --> 00:13:40,880
clients.
So again, the core competency is

250
00:13:41,400 --> 00:13:44,600
I have someone right now losing
their job to AI.

251
00:13:45,080 --> 00:13:47,000
They have a couple of 100
liquid.

252
00:13:47,160 --> 00:13:51,120
They have an appetite for maybe
3-4 hundred grand of SBA debt

253
00:13:51,160 --> 00:13:54,560
and they want to buy some brick
and mortar or a non brick and

254
00:13:54,560 --> 00:13:58,280
mortar brand that could replace
and exceed their income, which

255
00:13:58,280 --> 00:14:02,600
was 200 to 250.
So that's like that's happening,

256
00:14:02,720 --> 00:14:09,080
by the way, all day long now I'm
losing my job to AI or I feel

257
00:14:09,080 --> 00:14:11,680
like I'm not going to be here
much longer.

258
00:14:12,040 --> 00:14:14,240
And that's what we're hearing a
lot and I'm trying to get ahead

259
00:14:14,240 --> 00:14:16,360
of it.
So this is the way the call will

260
00:14:16,360 --> 00:14:19,000
go.
Can I keep my full time job that

261
00:14:19,000 --> 00:14:21,760
I'm probably not going to have
much longer and get this

262
00:14:21,760 --> 00:14:24,320
business going on the side so
that if they do terminate me, I

263
00:14:24,320 --> 00:14:28,240
could transit?
Yes, it's a very, it's almost a

264
00:14:29,680 --> 00:14:32,240
multiple time a week
conversation that we're having

265
00:14:32,400 --> 00:14:34,440
with people.
PA, people are very fearful

266
00:14:34,440 --> 00:14:37,760
right now of AI and a lot,
especially in the tech space,

267
00:14:38,120 --> 00:14:41,360
especially in any industry where
there's repetition, redundancy

268
00:14:41,360 --> 00:14:46,200
systems, I mean AI agents and
writing code and doing certain

269
00:14:46,200 --> 00:14:49,520
things that AI could do better,
which is crazy.

270
00:14:49,920 --> 00:14:53,720
So that's a common.
So yes, secondary what we do is

271
00:14:53,720 --> 00:14:57,000
we help people that have a great
idea become a franchisor.

272
00:14:57,000 --> 00:14:59,360
OK, All right, so I get calls
all the time.

273
00:14:59,360 --> 00:15:02,440
Hey, I heard you on the show.
I, I have this, I have a great

274
00:15:02,440 --> 00:15:03,880
idea.
My unit economics are

275
00:15:03,880 --> 00:15:05,920
incredible.
I could scale this thing across

276
00:15:05,920 --> 00:15:07,560
the United States.
I don't know how to do it.

277
00:15:07,720 --> 00:15:09,600
I don't know where to begin.
Can you help us?

278
00:15:09,600 --> 00:15:12,160
And we do.
And we do it by leveraging our

279
00:15:12,160 --> 00:15:15,440
third parties and team, you
know, attorneys and law firms

280
00:15:15,440 --> 00:15:17,760
because it's a, it basically
starts with a legal document.

281
00:15:18,360 --> 00:15:19,760
Right, right.
Which is the FD.

282
00:15:20,520 --> 00:15:23,200
Right, right.
We're going to come back to

283
00:15:23,200 --> 00:15:24,920
that.
Is there are there any key

284
00:15:24,920 --> 00:15:28,240
metrics or indicators when
you're having that conversation

285
00:15:28,240 --> 00:15:31,880
like you just talked about with
somebody that has this level of

286
00:15:32,080 --> 00:15:36,640
liquidity that says what kind of
franchise is good for them?

287
00:15:36,640 --> 00:15:40,840
Like say, does a, you know, if
somebody isn't a doctor or

288
00:15:40,880 --> 00:15:43,680
anything like that, can they,
would it make sense for them to

289
00:15:43,680 --> 00:15:49,120
buy a, an, A emergency clinic,
you know, that kind of a thing

290
00:15:49,120 --> 00:15:52,880
that would be, you know, a
pretty profitable franchise or

291
00:15:53,360 --> 00:15:57,880
that kind of a approach?
Yeah, it the the background, the

292
00:15:57,880 --> 00:16:02,040
skill sets, the risk tolerance,
the income needs, the geography

293
00:16:02,120 --> 00:16:06,600
of where they are, it all plays
into it attitude, right?

294
00:16:06,640 --> 00:16:08,360
Are they coachable?
Are they going to follow a

295
00:16:08,360 --> 00:16:10,400
proven system?
Are they are they too

296
00:16:10,400 --> 00:16:12,720
entrepreneurial?
That's a problem.

297
00:16:12,800 --> 00:16:14,840
That's a problem.
It's like, wait a minute, it's a

298
00:16:14,840 --> 00:16:16,840
problem.
You know, if Elon bought a

299
00:16:16,840 --> 00:16:19,480
franchise, he would change
literally everything about it.

300
00:16:19,720 --> 00:16:22,040
It would be disruptive.
It would probably be better, but

301
00:16:22,040 --> 00:16:24,720
it would ultimately be short
term, very disruptive.

302
00:16:24,920 --> 00:16:26,560
Long term would be a win, I'm
sure.

303
00:16:26,560 --> 00:16:28,160
So you can't be too
entrepreneurial.

304
00:16:28,160 --> 00:16:32,000
You got to follow the model,
stay within the curbs, right?

305
00:16:32,480 --> 00:16:34,640
So it's that's that's that
structure.

306
00:16:34,640 --> 00:16:37,520
So I look for that.
I look for likeability in a

307
00:16:37,520 --> 00:16:40,480
client.
Is the is the brand going to

308
00:16:40,480 --> 00:16:43,560
like the investor, the buyer,
the operator?

309
00:16:44,400 --> 00:16:47,040
A lot of people coming out of
tech positions, you know, some

310
00:16:47,040 --> 00:16:51,600
of them like to be alone in a
cubicle or in their Home Office.

311
00:16:51,600 --> 00:16:54,880
They don't want to communicate
with a lot of people right

312
00:16:54,880 --> 00:16:56,000
there.
Social introvert.

313
00:16:56,000 --> 00:16:58,080
That's not going to work and
you're not going to be able to

314
00:16:58,080 --> 00:17:00,760
lead your team.
Leadership is is critical.

315
00:17:00,920 --> 00:17:04,240
We always say, does the person
have energy?

316
00:17:04,599 --> 00:17:08,240
You know, yes, no.
Can the person energize others?

317
00:17:08,359 --> 00:17:09,040
Yes.
No.

318
00:17:09,720 --> 00:17:14,680
Can the person execute Right.
And can the person is there?

319
00:17:14,800 --> 00:17:16,800
Are they edgy?
I got this from Jack Welch.

320
00:17:16,800 --> 00:17:19,560
I think it's brilliant.
It's the four E1P principle,

321
00:17:19,839 --> 00:17:21,280
right?
Do you have energy?

322
00:17:21,359 --> 00:17:24,319
Can you energize others?
Can you execute the business?

323
00:17:24,520 --> 00:17:26,359
Are you edgy?
And you can make difficult

324
00:17:26,359 --> 00:17:29,600
decisions like firing people and
P for passion.

325
00:17:30,080 --> 00:17:32,720
Are you passionate?
Some of the IT folks, you know,

326
00:17:32,720 --> 00:17:35,600
they lack a lot of them and the
brands are not going to get

327
00:17:35,600 --> 00:17:38,200
excited about them and neither
are their employees.

328
00:17:38,280 --> 00:17:41,000
The employees don't follow like
a deadbeat.

329
00:17:41,000 --> 00:17:44,960
The employees will follow energy
and execution and someone that

330
00:17:44,960 --> 00:17:47,240
believes in something and has a
vision for the company.

331
00:17:47,280 --> 00:17:49,280
Even if it's a small company, it
doesn't matter.

332
00:17:49,280 --> 00:17:50,600
I don't care if it's a little
subway.

333
00:17:50,920 --> 00:17:53,840
The employees need to understand
who's running this thing, what's

334
00:17:54,080 --> 00:17:56,920
what, what is the mission?
What are the goals?

335
00:17:56,960 --> 00:17:59,680
How do we treat the customers?
What's acceptable, what's not

336
00:17:59,680 --> 00:18:02,280
acceptable?
And as you could tell by walking

337
00:18:02,280 --> 00:18:05,480
around the world and doing
business, there's no more

338
00:18:05,480 --> 00:18:08,760
leadership at any level.
Customer service sucks.

339
00:18:08,760 --> 00:18:10,880
Everything's broken, nothing
works.

340
00:18:10,880 --> 00:18:14,280
Bathrooms, it's like crazy.
We need leadership and that even

341
00:18:14,280 --> 00:18:17,360
at the small business level, and
that's what we look for, is

342
00:18:17,360 --> 00:18:20,240
someone that the brand's going
to say, I love this person.

343
00:18:20,320 --> 00:18:23,280
Where did you find this client?
I wish I had a hundred of them.

344
00:18:23,640 --> 00:18:25,160
And that's what we're really
good at.

345
00:18:25,320 --> 00:18:28,880
We're really good at that.
Because I heard a long time ago

346
00:18:28,880 --> 00:18:32,160
from an old mentor, you have to
cherry pick.

347
00:18:32,400 --> 00:18:37,600
Don't Polish the pits.
And it's so true, so true.

348
00:18:39,080 --> 00:18:42,000
Yeah, that's a good one.
It is.

349
00:18:42,000 --> 00:18:44,480
Polish the pits.
That's right, you got a cherry

350
00:18:44,480 --> 00:18:45,920
pick.
Don't Polish the pits.

351
00:18:46,480 --> 00:18:49,760
So you talked a a good bit
about, you know, what makes a

352
00:18:49,760 --> 00:18:55,160
great franchisee, right,
Somebody or, or you know, the,

353
00:18:55,240 --> 00:18:58,600
the characteristics of that is
and, and a lot on the

354
00:18:58,640 --> 00:19:04,040
personality traits, but do those
differ if somebody's buying or

355
00:19:04,120 --> 00:19:08,400
versus starting a franchise?
It seems like the edginess or

356
00:19:08,400 --> 00:19:12,080
the innovation or the forward
thinking this, you know this

357
00:19:12,080 --> 00:19:15,120
because in startups, one of the
challenges you have a startups

358
00:19:15,120 --> 00:19:17,560
and for investors investing in
startups and startups being

359
00:19:17,560 --> 00:19:21,360
startups is that they have, it's
the hunt, right?

360
00:19:21,360 --> 00:19:24,640
They have they love the building
part, but they struggle to

361
00:19:24,640 --> 00:19:28,360
transition to the management,
leadership, organizational part.

362
00:19:28,360 --> 00:19:33,240
And investors love that dynamic,
you know, the charisma of that

363
00:19:33,440 --> 00:19:38,120
visionary entrepreneur and then
but then struggle with wondering

364
00:19:38,120 --> 00:19:42,760
why they have, you know, a
revolving door of their team and

365
00:19:42,760 --> 00:19:46,440
they can't continue momentum as
they get, they start hitting a

366
00:19:46,440 --> 00:19:48,280
wall of, you know, millions in
revenue.

367
00:19:48,360 --> 00:19:53,960
It's harder for them to scale.
So it sounds like it's somebody

368
00:19:53,960 --> 00:19:57,720
that has that but is more
grounded as the best person to

369
00:19:58,800 --> 00:20:01,560
leading a franchise.
When we're working with someone

370
00:20:01,560 --> 00:20:05,840
that we feel it it, they don't
check a lot of the boxes that

371
00:20:05,840 --> 00:20:08,720
the franchisors are looking for
in a partner.

372
00:20:08,720 --> 00:20:11,600
It's a partnership, right?
You're you're buying, you're

373
00:20:11,600 --> 00:20:14,960
paying me a franchise fee.
I'm giving you my blueprint, my

374
00:20:14,960 --> 00:20:18,640
road map to be successful.
And I'm letting you represent my

375
00:20:18,640 --> 00:20:22,680
brand, my moniker at the local
level like you are now a direct

376
00:20:22,680 --> 00:20:25,560
reflection representation of my
brand.

377
00:20:25,800 --> 00:20:27,640
Is that the right person to do
that?

378
00:20:27,800 --> 00:20:31,960
And that's why I tell everyone,
franchises are not sold.

379
00:20:32,200 --> 00:20:34,880
They are awarded to qualified
candidates.

380
00:20:35,120 --> 00:20:38,680
And a lot of people enter
franchising with a consumer

381
00:20:38,680 --> 00:20:41,720
behavior.
And the consumer behavior is he

382
00:20:41,720 --> 00:20:45,240
who has the gold rules, right?
No, no one cares about your

383
00:20:45,240 --> 00:20:46,920
money.
No, no one cares about your

384
00:20:46,920 --> 00:20:49,160
check, right?
They care about you.

385
00:20:49,560 --> 00:20:52,640
And are you the right fit for
this culture, for this brand?

386
00:20:52,840 --> 00:20:56,160
When we identify that someone
doesn't check all those boxes,

387
00:20:56,480 --> 00:21:00,000
we have a chat with them and
explain you are not a

388
00:21:00,000 --> 00:21:03,320
salesperson.
You want to buy a heavily

389
00:21:03,640 --> 00:21:07,200
outside sales organization.
So what happens is a lot of

390
00:21:07,200 --> 00:21:12,040
technology people, they fall in
love with, let's say Signorama

391
00:21:12,040 --> 00:21:13,880
as a brand.
Just giving you an example of

392
00:21:13,880 --> 00:21:16,080
something you might know and
your audience might know.

393
00:21:16,080 --> 00:21:17,600
I'm not endorsing the brand at
all.

394
00:21:17,840 --> 00:21:20,360
So let's just talk about a
Signorama, right?

395
00:21:20,360 --> 00:21:23,440
You're dealing with channel
letters and box signs and CAD

396
00:21:23,600 --> 00:21:27,600
and software design, right?
You're bending neon and glass

397
00:21:27,600 --> 00:21:31,040
and you're illuminating open
signs and you know, Whataburger

398
00:21:31,040 --> 00:21:33,240
and all these different brands
sounds really cool.

399
00:21:33,280 --> 00:21:35,880
Here's the problem.
All IT people love it.

400
00:21:35,880 --> 00:21:38,720
All engineers love it.
We're dealing with equipment and

401
00:21:38,720 --> 00:21:43,080
and all this type of stuff.
Are you going to go to a

402
00:21:43,080 --> 00:21:46,240
networking event at 7:30 PM on
Thursday night?

403
00:21:46,360 --> 00:21:48,880
No.
Are your hands sweating at the

404
00:21:48,880 --> 00:21:50,400
thought of me even bringing that
to you?

405
00:21:50,400 --> 00:21:52,120
Yes.
There's your problem.

406
00:21:52,560 --> 00:21:56,120
People love a business.
They don't love what it takes to

407
00:21:56,120 --> 00:21:59,840
grow that business.
And that is the disconnect.

408
00:22:00,080 --> 00:22:02,560
That's the disconnect that we
identify upfront.

409
00:22:02,760 --> 00:22:06,520
You are not a salesperson,
you're not charismatic, right?

410
00:22:06,560 --> 00:22:08,800
You can't close, you're never
going to grow.

411
00:22:08,840 --> 00:22:11,400
You're not a rainmaker, You're
never going to get this thing

412
00:22:11,400 --> 00:22:13,160
off the ground.
So you could go play with the

413
00:22:13,160 --> 00:22:15,320
software and play with your
equipment because you're about

414
00:22:15,320 --> 00:22:18,360
to go out of business.
So we say to them, you need a

415
00:22:18,360 --> 00:22:20,760
Rockstar salesperson.
Are you willing?

416
00:22:20,760 --> 00:22:23,360
It's going to be 6 figures.
Are you willing to make that

417
00:22:23,360 --> 00:22:26,480
investment?
So my total investment is, is

418
00:22:26,480 --> 00:22:28,960
more than what they disclosed in
the FDD.

419
00:22:28,960 --> 00:22:31,240
For you, it is because you can't
sell.

420
00:22:31,240 --> 00:22:34,320
Yeah, OK.
And then at that moment we start

421
00:22:34,320 --> 00:22:38,120
having a real conversation
about, OK, hire the skill sets I

422
00:22:38,120 --> 00:22:40,320
don't have.
And that's the conversation.

423
00:22:40,400 --> 00:22:43,440
Here are the skill sets you
don't have, OK, you need to hire

424
00:22:43,440 --> 00:22:45,720
those skill sets.
If you're not willing to do

425
00:22:45,720 --> 00:22:47,760
that, not going to happen.
Yeah.

426
00:22:47,760 --> 00:22:51,040
And that's, you know, part of
what I use in my coaching for,

427
00:22:51,560 --> 00:22:54,480
you know, entrepreneurs raising
capital and and attracting

428
00:22:54,480 --> 00:22:57,320
capital.
Is that whole kind of a concept

429
00:22:57,560 --> 00:23:00,280
of the E myth revisited.
I'm sure you know that Michael

430
00:23:00,280 --> 00:23:03,240
Gerber, right?
And it's like you, you have to

431
00:23:03,240 --> 00:23:06,200
know enough about all of the
jobs that you need to in order

432
00:23:06,200 --> 00:23:07,960
to be effective in your
organization.

433
00:23:07,960 --> 00:23:11,080
So you can know if they're doing
the job well, right?

434
00:23:11,200 --> 00:23:15,760
But but part of loving what
you're doing as a business is

435
00:23:16,160 --> 00:23:21,840
and being able to do it is not
by inevitably you have to go do

436
00:23:21,840 --> 00:23:23,480
all those things.
And if there's something that

437
00:23:23,480 --> 00:23:26,000
you hate, you end up hate.
Like in the case of, for those

438
00:23:26,000 --> 00:23:29,920
who don't know, Emeth revisited,
it's a pie maker and she loves

439
00:23:29,920 --> 00:23:32,240
or he whatever loves making
pies.

440
00:23:32,480 --> 00:23:35,160
But because they have to do all
the numbers and they do all this

441
00:23:35,160 --> 00:23:38,000
other stuff, they end up hating
making pies.

442
00:23:38,000 --> 00:23:42,400
And so it's part of building a
team so you can work on your

443
00:23:42,400 --> 00:23:44,400
business and not always in your
business.

444
00:23:44,400 --> 00:23:48,240
And that leads me to the
question that of the owner

445
00:23:48,240 --> 00:23:52,000
operator concept, right, that I
guess a master has to do.

446
00:23:52,040 --> 00:23:54,280
Like we've been talking about, I
guess, somebody buying a

447
00:23:54,280 --> 00:23:57,520
franchise and having to do these
things and think about the team

448
00:23:57,520 --> 00:24:00,360
they're going to build in, you
know, their own skill set and

449
00:24:00,360 --> 00:24:04,400
stuff, which is, you know, part
of all of any business.

450
00:24:04,440 --> 00:24:08,120
But there is a definite
investment strategy that says,

451
00:24:08,120 --> 00:24:12,560
I'm buying this and I'm going to
hire the right people to run it.

452
00:24:12,760 --> 00:24:16,680
And in some cases I might
sublease like you're talking

453
00:24:16,680 --> 00:24:19,080
about.
And an owner operator earn their

454
00:24:19,080 --> 00:24:23,360
business as they succeed at the
business and, and they, they

455
00:24:23,360 --> 00:24:28,640
start, I had heard this where
the, the, the, the master will

456
00:24:28,840 --> 00:24:30,920
still own the brick and mortar
of it.

457
00:24:31,280 --> 00:24:33,680
Whereas, you know, as a leasing
thing.

458
00:24:34,000 --> 00:24:40,720
But the franchise that they sub
sold it to develops the business

459
00:24:40,720 --> 00:24:44,480
enough that they earn the right
to actually outright own the

460
00:24:44,480 --> 00:24:47,200
operational side of that.
Is that still something that

461
00:24:47,200 --> 00:24:51,560
people look at and do?
In my world, buying any real

462
00:24:51,560 --> 00:24:55,720
estate or the franchisor owning
dirt is non existent really.

463
00:24:55,720 --> 00:24:59,520
But that story is, you know,
kind of a McDonald's thing,

464
00:24:59,520 --> 00:25:02,040
right?
Where and, and yes, other large

465
00:25:02,040 --> 00:25:05,920
brands have tried to replicate
that play where McDonald's will

466
00:25:05,920 --> 00:25:10,880
own the dirt and the franchise
will own the brick and mortar.

467
00:25:11,520 --> 00:25:14,320
So the parent company owns the
dirt and then you're building

468
00:25:14,320 --> 00:25:17,960
brick and mortar on top of it
and off you go as a McDonald's

469
00:25:17,960 --> 00:25:19,920
franchise.
Other brands had tried

470
00:25:19,920 --> 00:25:22,720
replicating that real estate
kind of strategy.

471
00:25:22,840 --> 00:25:25,240
So you're a franchisor, but
you're really in the real estate

472
00:25:25,240 --> 00:25:28,120
business and hamburgers and
French fries is just your

473
00:25:28,120 --> 00:25:30,240
product, your vehicle.
And not a lot of brands have

474
00:25:30,240 --> 00:25:33,440
that kind of capital and the
ability to just be a land Baron,

475
00:25:33,560 --> 00:25:36,320
you know, like like McDonald's
mean multinational multi

476
00:25:36,320 --> 00:25:38,320
billion.
So most brands that we're

477
00:25:38,320 --> 00:25:40,840
dealing with, they're going to
lease the space.

478
00:25:40,880 --> 00:25:45,120
Let if you take the Super set of
brands that we deal with, first

479
00:25:45,120 --> 00:25:46,880
of all, we have a ton of non
brick and mortar.

480
00:25:47,080 --> 00:25:49,320
So there's no location at all.
None.

481
00:25:49,480 --> 00:25:51,560
They're operating out of their
house, a small office, an

482
00:25:51,680 --> 00:25:53,880
industrial park, really cheap
space.

483
00:25:54,160 --> 00:25:57,440
Then you have your brick and
mortar, which is never owned

484
00:25:57,440 --> 00:25:59,240
again.
It's usually leased and it would

485
00:25:59,240 --> 00:26:02,120
be a maximum, you know, 2500
square feet.

486
00:26:02,120 --> 00:26:06,720
And when I, and I'm referring to
typical everyday deals, $1000

487
00:26:06,720 --> 00:26:09,240
trampoline park is not an
everyday deal, right?

488
00:26:09,240 --> 00:26:12,960
It's a four $5,000,000
investment for a, you know,

489
00:26:12,960 --> 00:26:16,760
trampoline park at a 30,000 to
50,000 square foot of space.

490
00:26:16,760 --> 00:26:20,680
So everyday deals are going to
be your Supercuts, your Great

491
00:26:20,680 --> 00:26:24,480
Clips write, your UPS stores,
your Makos, your Meineke's, your

492
00:26:24,480 --> 00:26:28,040
oil changes, your pet areas,
your you know, your dog

493
00:26:28,040 --> 00:26:31,320
boarding, you know, and your
beauty, your vanity, your nails,

494
00:26:31,360 --> 00:26:33,800
all that stuff that you see.
I mean, enter a strip mall.

495
00:26:33,880 --> 00:26:36,080
That's what America is, is
funding.

496
00:26:36,400 --> 00:26:38,800
Go to any strip mall in America
and tell me they don't have a

497
00:26:38,800 --> 00:26:41,760
nail salon in it, right.
Go to any strip mall in America

498
00:26:41,760 --> 00:26:44,880
and look, just look around.
You'll see massage therapy.

499
00:26:45,000 --> 00:26:48,000
Look around, you'll see you'll
be within shooting distance of a

500
00:26:48,000 --> 00:26:51,120
pack and ship location.
You'll be you'll always be

501
00:26:51,120 --> 00:26:55,600
within distance of hair, nails,
makeup, beauty, vanity, always

502
00:26:55,600 --> 00:26:58,240
within there.
Those things that they are the

503
00:26:58,240 --> 00:27:03,800
thousand 1500 square foot spaces
that feed off of the the main.

504
00:27:03,800 --> 00:27:06,200
Maybe it's a grocery store.
The anchor tenant?

505
00:27:06,720 --> 00:27:08,760
Who's the anchor?
Is it a Home Depot with TJ Maxx?

506
00:27:08,760 --> 00:27:10,840
Is it a grocery store?
Is it LA Fistas?

507
00:27:10,840 --> 00:27:14,080
You have your anchors and then
you have just a ton of 1500

508
00:27:14,080 --> 00:27:18,720
square foot spaces.
OK, so the, I think we're in

509
00:27:18,720 --> 00:27:22,280
the, I guess, you know, because
there's all different kinds of

510
00:27:22,280 --> 00:27:26,920
price points for a franchise
buying a franchise, right?

511
00:27:27,880 --> 00:27:33,120
Years ago, I had attended a
conference or a trade show just

512
00:27:33,120 --> 00:27:37,360
to, you know, get a foundational
to know what was out there and

513
00:27:37,360 --> 00:27:39,080
understand more about
franchising.

514
00:27:39,880 --> 00:27:45,160
Because I, I had, had an
investor that I had at a company

515
00:27:45,160 --> 00:27:47,680
I was working with that I
couldn't connected them up to an

516
00:27:47,680 --> 00:27:51,640
investor and the investor came
to the table was supposed to be

517
00:27:51,640 --> 00:27:53,800
closing.
Like we were like at that point,

518
00:27:53,800 --> 00:27:58,440
but I had kind of the final hour
decided to go buy a franchise

519
00:27:58,440 --> 00:28:00,600
instead, you know, as an
investment.

520
00:28:00,800 --> 00:28:04,080
But he, you know, it was one of
those where he like he didn't

521
00:28:04,080 --> 00:28:06,120
want to be getting, like I said,
say Dunkin' Donuts didn't want

522
00:28:06,120 --> 00:28:09,440
to be getting up at 4 O clock in
the morning to go buy Donuts.

523
00:28:09,920 --> 00:28:11,960
And on the flip, I mean to start
making Donuts.

524
00:28:11,960 --> 00:28:17,120
The flip side of that was
somebody that, you know, decides

525
00:28:17,120 --> 00:28:21,440
I, you know, I want to have a
donut shop, but I can't afford a

526
00:28:21,440 --> 00:28:24,280
Dunkin' Donuts.
And it's it, there's a lot of

527
00:28:24,280 --> 00:28:27,560
money to start your own, but
there's this, you know, premium

528
00:28:27,560 --> 00:28:30,040
because of the brand, the
system, the operations, all the

529
00:28:30,040 --> 00:28:35,360
things that we've talked about
is that they, so they find a

530
00:28:35,360 --> 00:28:40,040
partner or an investor that will
come in and underwrite the, the

531
00:28:40,040 --> 00:28:44,160
purchase of the franchise.
And they, that's where I saw the

532
00:28:44,160 --> 00:28:47,840
owner operator means that like
they, they, they don't actually

533
00:28:47,840 --> 00:28:49,960
own it yet.
They operate it till they have

534
00:28:49,960 --> 00:28:54,960
the ability to own it.
I see, I see in my world they're

535
00:28:54,960 --> 00:28:57,280
straight up owning the
franchise.

536
00:28:57,280 --> 00:29:00,240
So client will come to me,
they're going to buy it, they're

537
00:29:00,240 --> 00:29:02,560
going to deals.
Deals are funded a multitude of

538
00:29:02,560 --> 00:29:08,040
ways, cash, home equity, SBA
retirement plans under the ROBS

539
00:29:08,200 --> 00:29:10,560
tax strategy.
All right, there's a it's a

540
00:29:10,560 --> 00:29:12,200
hybrid old ways to get a deal
done.

541
00:29:12,200 --> 00:29:15,560
But whenever in a situation, you
know, that you described, other

542
00:29:15,560 --> 00:29:20,680
than a manager wanting to buy
out, you know, the franchise and

543
00:29:20,680 --> 00:29:22,960
say, I'm going to take it now
you have that situation.

544
00:29:23,200 --> 00:29:26,000
One of the things I tell clients
are you're using like very

545
00:29:26,000 --> 00:29:28,240
interesting words.
I and I love the way you, you

546
00:29:28,240 --> 00:29:31,720
speak about you're very you're
very specific in the words that

547
00:29:31,720 --> 00:29:34,200
you use.
So when we when you talk about

548
00:29:34,200 --> 00:29:37,800
like you mentioned, Michael
Gerber, the E myth, OK, the

549
00:29:37,800 --> 00:29:40,520
number one issue that we deal
with is that people say I'm

550
00:29:40,520 --> 00:29:43,120
going to buy a business when in
fact all they do is buy a job,

551
00:29:43,800 --> 00:29:44,920
right?
Because they actually make

552
00:29:44,920 --> 00:29:48,760
sandwiches, they actually groom
dogs, they cut people's hair or

553
00:29:48,760 --> 00:29:50,640
they're doing whatever their
brand is doing.

554
00:29:50,640 --> 00:29:52,840
That's an employee.
That's an employee.

555
00:29:53,520 --> 00:29:56,480
So any business owner that says,
oh, I'm a business owner.

556
00:29:56,480 --> 00:29:59,320
I own a franchise.
What franchise do you own?

557
00:29:59,600 --> 00:30:03,160
Oh, I own, you know, Supercuts.
And it's like if you're actually

558
00:30:03,160 --> 00:30:05,040
cutting hair, you don't own
anything.

559
00:30:05,040 --> 00:30:07,520
I'm I'm sorry, you just bought
yourself a job because you're

560
00:30:07,520 --> 00:30:09,480
never going to scale it.
You're never going to go

561
00:30:09,480 --> 00:30:10,600
anywhere.
You're never going to create

562
00:30:10,600 --> 00:30:11,680
wealth.
You're never really going to do

563
00:30:11,680 --> 00:30:14,240
anything if you're standing on
your feet all day cutting

564
00:30:14,240 --> 00:30:16,240
someone's hair, like it's not
never going to happen.

565
00:30:16,640 --> 00:30:19,840
So what we try and explain to
people is we want you to look at

566
00:30:19,840 --> 00:30:24,000
businesses that are profitable,
fully burdened by payroll,

567
00:30:24,200 --> 00:30:27,880
meaning not you, right?
I want you, the owner, to be

568
00:30:27,880 --> 00:30:31,120
replaced with a manager.
I want you managing the manager.

569
00:30:31,480 --> 00:30:34,600
I want you working on the
business, not in the business.

570
00:30:35,120 --> 00:30:37,720
Simple words, very difficult for
people to do.

571
00:30:38,120 --> 00:30:39,640
I actually, I'll tell you a
quick story.

572
00:30:39,640 --> 00:30:42,920
It was actually a remarkable
story and it's recorded on my

573
00:30:42,920 --> 00:30:45,960
podcast.
So he's a, he's a three time

574
00:30:45,960 --> 00:30:50,160
national pool champion.
This guy has been an appliance

575
00:30:50,160 --> 00:30:53,960
repairman while playing pool for
17 years.

576
00:30:54,520 --> 00:30:57,200
OK, he easily could have just
went out on his own and started

577
00:30:57,200 --> 00:30:58,440
his own appliance repair
business.

578
00:30:58,440 --> 00:31:01,280
But he didn't.
He ended up buying Mr.

579
00:31:01,280 --> 00:31:03,560
Appliance.
Again, 17 years of appliance

580
00:31:03,560 --> 00:31:05,320
experience.
He ended up buying a franchise.

581
00:31:05,320 --> 00:31:08,120
He saw the value in the
franchise, but listen to this

582
00:31:08,120 --> 00:31:09,200
story.
It's remarkable.

583
00:31:09,680 --> 00:31:13,760
So he buys the franchise, the
franchisor gives him guidance,

584
00:31:13,960 --> 00:31:17,920
and one of the pieces of
guidance is you are now one of

585
00:31:18,040 --> 00:31:22,640
our franchisees.
Stop driving the van and stop

586
00:31:22,640 --> 00:31:25,920
repairing appliances.
You're an owner now, and you

587
00:31:25,920 --> 00:31:29,480
need to embrace the methodology
of working on your business.

588
00:31:29,480 --> 00:31:31,520
Not in your business.
Oh, yeah, yeah, yeah, yeah, of

589
00:31:31,520 --> 00:31:32,280
course.
Of course.

590
00:31:32,280 --> 00:31:34,440
That's why I did this.
I want you to tell me how to

591
00:31:34,440 --> 00:31:37,000
become successful and create
wealth and provide for my

592
00:31:37,000 --> 00:31:38,720
family.
What does he do?

593
00:31:39,120 --> 00:31:41,440
Drives the van, fixes
appliances.

594
00:31:41,600 --> 00:31:44,560
Listen, this is like crazy, goes
to the franchisor.

595
00:31:44,560 --> 00:31:47,280
Several months later, I'm about
to file for bankruptcy.

596
00:31:47,280 --> 00:31:48,840
I'm failing.
What do I do?

597
00:31:49,120 --> 00:31:53,160
Franchisor repeats.
Stop driving the van and start

598
00:31:53,160 --> 00:31:58,840
leading your team today.
That guy does over 5 million

599
00:31:59,040 --> 00:32:01,360
repairing appliances in
Michigan.

600
00:32:01,520 --> 00:32:04,520
And for anyone that cares about
a story like that, it would be

601
00:32:04,520 --> 00:32:06,240
on my pod.
As you mentioned, pursuit of

602
00:32:06,240 --> 00:32:08,240
profit.
Remarkable story.

603
00:32:08,240 --> 00:32:11,480
I just recorded it.
It didn't even post yet, but but

604
00:32:11,480 --> 00:32:13,280
it will because we recorded it a
couple weeks ago.

605
00:32:13,280 --> 00:32:17,480
So it should be up there soon.
That's the that mindset shift,

606
00:32:17,880 --> 00:32:20,120
believe it or not, sounds so
simple.

607
00:32:20,520 --> 00:32:23,040
To become successful, all I have
to do is stop being an employee

608
00:32:23,040 --> 00:32:25,600
in my own organization.
That's just easy.

609
00:32:25,600 --> 00:32:27,920
Yeah, go ahead, do it.
You can't do it.

610
00:32:28,200 --> 00:32:31,280
People can't do it because they
were raised by someone who said

611
00:32:31,280 --> 00:32:33,080
if you want something done
right, do it yourself.

612
00:32:33,240 --> 00:32:36,480
It's the stupidest, worst advice
you can ever give another human

613
00:32:36,480 --> 00:32:39,040
being.
It's suppressing, it will keep

614
00:32:39,040 --> 00:32:41,800
you poor, it will keep you
miserable, and it'll keep you

615
00:32:41,800 --> 00:32:44,600
working till the day you die.
It's a horrible advice.

616
00:32:45,120 --> 00:32:46,600
Wow, horrible advice.
OK.

617
00:32:46,640 --> 00:32:50,360
We will come come back to the
financing side of this thing,

618
00:32:50,360 --> 00:32:54,000
but I want to make sure
everybody knows how to go and

619
00:32:54,160 --> 00:32:55,680
find it.
Go to your website.

620
00:32:55,680 --> 00:32:58,960
It's frinosity with, but it's
spelled with an O in the middle.

621
00:32:58,960 --> 00:33:07,280
So it's FRANOCIT y.com OK, so
Fran like franchise O and city.

622
00:33:07,320 --> 00:33:12,280
OK, like velocity, but fronicity
OK, and take a few minutes to

623
00:33:12,280 --> 00:33:14,960
talk about your book, your best
selling book, because what all

624
00:33:14,960 --> 00:33:18,840
what all kind of golden Nuggets
ways is it intended for the the

625
00:33:18,880 --> 00:33:22,040
person that's going to buy the
Fran, a buyer, the franchise, a

626
00:33:22,040 --> 00:33:25,240
master building it or what What
what's your audience there?

627
00:33:25,920 --> 00:33:28,560
Book, books, bestseller on
Amazon.

628
00:33:28,920 --> 00:33:31,960
Beyond the book, Very, very
proud of Beyond the Brand.

629
00:33:31,960 --> 00:33:33,760
Exactly.
It's yeah, you can't see the

630
00:33:34,040 --> 00:33:36,120
yeah, Beyond the Brand on Amazon
right now.

631
00:33:36,120 --> 00:33:37,800
It ended up hitting multiple
categories.

632
00:33:37,800 --> 00:33:40,200
It got multiple awards as a
bestseller in that in the

633
00:33:40,200 --> 00:33:42,840
category, of course, I'm not
competing with, you know, Mel

634
00:33:42,840 --> 00:33:45,000
Robbins.
We're talking about, we're

635
00:33:45,000 --> 00:33:48,400
talking about entrepreneurship,
franchising as a category.

636
00:33:48,800 --> 00:33:51,400
We're very proud of the book
because the book wasn't, you

637
00:33:51,400 --> 00:33:54,120
know, click bait and giving
people cliches.

638
00:33:54,120 --> 00:33:57,200
The book was actually written
someone to have a blueprint to

639
00:33:57,200 --> 00:33:59,160
be successful.
Who should do it?

640
00:33:59,520 --> 00:34:01,800
How do you do it?
How do you fund it?

641
00:34:01,800 --> 00:34:06,040
Massive section on funding from
unsecured lines of credit all

642
00:34:06,040 --> 00:34:10,360
the way up to Helox, all the way
up to SBASBA Express, SBA 7A.

643
00:34:10,560 --> 00:34:13,719
It's all in the book on how you
can fund it.

644
00:34:13,800 --> 00:34:16,600
A big section on Rob's, of
course, because Rob's huge.

645
00:34:16,639 --> 00:34:19,960
There's a section in or about
not working in your business.

646
00:34:20,159 --> 00:34:21,800
What does that mean?
Hire talent.

647
00:34:21,960 --> 00:34:25,840
How do you retain talent?
It goes into incentives, it goes

648
00:34:25,920 --> 00:34:29,880
into abandonment clause as it
goes into claw back provisions,

649
00:34:30,080 --> 00:34:33,880
it gets very granular
granularity and words that you

650
00:34:33,880 --> 00:34:36,199
would find from a private equity
firm, right?

651
00:34:36,199 --> 00:34:40,440
So not your, it's not a normally
written business book with fluff

652
00:34:40,440 --> 00:34:43,199
and images.
I mean, it doesn't have an image

653
00:34:43,199 --> 00:34:46,120
of fear saying face everything
and rise.

654
00:34:46,120 --> 00:34:49,320
It goes through why you fear,
right?

655
00:34:49,320 --> 00:34:51,679
You know, it's, it's like all
the stuff I see.

656
00:34:51,679 --> 00:34:55,080
It's like, that's not helpful.
I've read all these business

657
00:34:55,080 --> 00:34:57,280
books from competitors and it's
like that.

658
00:34:57,280 --> 00:34:59,640
That just wasn't helpful.
You know what I mean?

659
00:34:59,640 --> 00:35:02,120
Like, that doesn't really do
anything for me.

660
00:35:02,240 --> 00:35:06,000
You're stating the obvious, like
you're sharing some anecdotal

661
00:35:06,000 --> 00:35:09,400
stories, but that's really not
giving me clarity.

662
00:35:09,520 --> 00:35:11,520
It's not giving me the ability
to execute.

663
00:35:11,680 --> 00:35:15,480
It's not giving me anything
actionable that I could put that

664
00:35:15,480 --> 00:35:18,280
book down and say I got it, I
got it.

665
00:35:18,400 --> 00:35:20,240
I have clarity.
I know who to call.

666
00:35:20,560 --> 00:35:22,080
I, I know how I'm going to do
this.

667
00:35:22,080 --> 00:35:23,360
I know I'm going to keep my
career.

668
00:35:23,480 --> 00:35:25,440
I know how I'm going to get my
spouse on board.

669
00:35:25,600 --> 00:35:27,640
I know how I'm going to fund it,
right.

670
00:35:27,800 --> 00:35:32,560
Oh, by the way, there's, I don't
know, 24 mandates for

671
00:35:32,760 --> 00:35:36,720
negotiating a commercial lease.
When I was with Cartridge World,

672
00:35:36,720 --> 00:35:39,600
I, I personally negotiated every
lease, right?

673
00:35:39,600 --> 00:35:41,480
These are some of the toughest
landlords in the world.

674
00:35:41,480 --> 00:35:44,760
New York.
I mean, it's unbelievable, but a

675
00:35:44,760 --> 00:35:46,880
lot of people don't realize
personal guarantee rest, they

676
00:35:46,880 --> 00:35:49,480
don't understand term, they
don't understand escalation

677
00:35:49,480 --> 00:35:50,680
clauses.
A lot of them don't even

678
00:35:50,680 --> 00:35:54,280
understand that the space that
you're looking at 1000 square

679
00:35:54,280 --> 00:35:58,640
feet is 1325 square feet.
Measure it.

680
00:35:59,200 --> 00:36:02,720
Like, I'm serious.
This stuff happens every day.

681
00:36:02,720 --> 00:36:06,160
It's like, how big's this space?
OK, you know, trust but verify.

682
00:36:06,160 --> 00:36:08,160
Get someone in there.
Measure like little things like

683
00:36:08,160 --> 00:36:09,680
that.
Can you imagine paying $100 a

684
00:36:09,680 --> 00:36:12,680
square foot on 200 square feet
that you didn't even get?

685
00:36:13,120 --> 00:36:15,160
So like little thing.
I always say landlords have

686
00:36:15,160 --> 00:36:18,120
rubber rulers, right?
It's just a rubber ruler.

687
00:36:18,400 --> 00:36:20,360
It moves, never to their
detriment.

688
00:36:20,400 --> 00:36:24,240
It moves anyway.
The book is chock full of ideas

689
00:36:24,240 --> 00:36:29,240
at big section on fear as well.
Fear has killed more deals than

690
00:36:29,240 --> 00:36:32,880
failure ever has and it will
continue that way cuz we live in

691
00:36:32,880 --> 00:36:35,480
a culture now where everybody
wants to be half pregnant.

692
00:36:35,680 --> 00:36:38,960
Nobody wants to offend anyone.
We live in this weird time where

693
00:36:38,960 --> 00:36:42,680
no one is really taking the
chances and the risks that they

694
00:36:42,680 --> 00:36:45,280
should be taking, especially for
our youth.

695
00:36:45,600 --> 00:36:48,480
Our youth should be putting all
the chips in the center of the

696
00:36:48,480 --> 00:36:50,520
table.
I mean it like that's your

697
00:36:50,600 --> 00:36:51,960
window.
Do it.

698
00:36:52,120 --> 00:36:54,480
So what?
You failed, you learn, you get

699
00:36:54,480 --> 00:36:56,760
up, you have a long runway for
recovery.

700
00:36:56,880 --> 00:36:59,560
Not a big deal.
Like in the scheme of it's like,

701
00:36:59,720 --> 00:37:02,040
it's like you and I talking
about a stock market crash in

702
00:37:02,040 --> 00:37:05,000
the 80s.
It looks like a tiny little blip

703
00:37:05,000 --> 00:37:09,320
on a graph at this point.
So it's just take so think

704
00:37:09,320 --> 00:37:12,280
that's what the book gets into a
very granular, very detailed.

705
00:37:12,520 --> 00:37:16,120
Again, was super proud of it.
Yeah, but I can see there's some

706
00:37:16,160 --> 00:37:20,280
serious passion in totally what
you're talking about.

707
00:37:20,280 --> 00:37:27,400
And you know, I can feel the
decades of experience and of

708
00:37:27,560 --> 00:37:32,880
that you wanted to put on paper
the and all of the good, bad and

709
00:37:32,880 --> 00:37:36,760
the ugly of what you have
experienced in your own ups and

710
00:37:36,760 --> 00:37:39,400
downs and trials and
tribulations and successes and

711
00:37:39,400 --> 00:37:41,440
failures.
I mean, all of the, the bio is

712
00:37:41,440 --> 00:37:44,800
all about the successes.
And you know, and as you as you

713
00:37:45,040 --> 00:37:48,800
have, you know, advise lots of
companies that have made you

714
00:37:48,800 --> 00:37:53,520
know, or lots of entrepreneurs
or future franchisees, you know

715
00:37:53,520 --> 00:37:56,680
how you know what all of all of
that you just shared all of

716
00:37:56,680 --> 00:37:58,760
that.
It would like really, I can

717
00:37:58,760 --> 00:38:02,560
really feel it and I could I
think it's going to be a well,

718
00:38:02,560 --> 00:38:06,600
obviously it's a great selling
book, but I would it makes me

719
00:38:06,600 --> 00:38:09,040
wish that I could.
You know, sometimes you go back

720
00:38:09,040 --> 00:38:12,040
and talk to your younger self
and you say what should be done

721
00:38:12,040 --> 00:38:16,600
and the path that I took on, you
know, being a disruptor to

722
00:38:16,600 --> 00:38:19,960
change the status quo of how
people think and what they do.

723
00:38:19,960 --> 00:38:24,520
You know, I'm not inventing, you
know, a new rocket, but it's

724
00:38:25,160 --> 00:38:28,280
it's challenging.
And sometimes I look back and

725
00:38:28,280 --> 00:38:32,960
say, you know, I probably should
have bought a franchise instead

726
00:38:33,400 --> 00:38:37,280
or hey, bought it, made a bunch
of money and use that to do the

727
00:38:37,280 --> 00:38:40,080
thing that I'm disrupting on.
That's right.

728
00:38:40,520 --> 00:38:44,280
So, OK, so let's talk about the
financing side of this stuff,

729
00:38:44,280 --> 00:38:48,560
right?
Because I think, you know, do it

730
00:38:48,560 --> 00:38:52,920
does SBA favor franchise
acquisition?

731
00:38:53,200 --> 00:38:58,280
And we had talked previously
about a situation that I had

732
00:38:58,280 --> 00:39:02,160
experienced with a guy that had
used his retirement because that

733
00:39:02,560 --> 00:39:07,000
franchisor had this weird thing
where they didn't want SBA to

734
00:39:07,080 --> 00:39:11,600
pay for the franchise itself,
you know, the the the

735
00:39:11,880 --> 00:39:14,720
contracting side of it.
So then when he went to try to

736
00:39:14,720 --> 00:39:20,000
get the SBA loan to pay for the
build out in order to be

737
00:39:20,000 --> 00:39:23,520
successful, he didn't have the
same assets that he had before

738
00:39:23,520 --> 00:39:26,720
to qualify.
So talk about that and some of

739
00:39:26,720 --> 00:39:31,440
the ways that entrepreneurs or
folks can franchise can finance

740
00:39:31,440 --> 00:39:34,120
these.
But also throw in there because

741
00:39:34,120 --> 00:39:37,360
I think family offices or
aggregates of they're not

742
00:39:37,360 --> 00:39:40,200
actually a straight up private
equity funds, but they're an

743
00:39:40,200 --> 00:39:44,280
aggregate of a few people that
come together to create the

744
00:39:44,280 --> 00:39:47,840
funding for master franchise.
Right.

745
00:39:47,920 --> 00:39:52,360
Yeah, I, I see that that last
comment, I see that on larger

746
00:39:52,360 --> 00:39:57,440
deals like multi million deals,
we represent a brand called Sky

747
00:39:57,440 --> 00:40:00,280
Zone.
Sky Zone can be between two and

748
00:40:00,640 --> 00:40:03,040
and 5 million.
That's the parachuting thing.

749
00:40:03,720 --> 00:40:05,560
No, it's the trampoline park.
The trampoline park?

750
00:40:06,640 --> 00:40:10,920
Yeah, trampoline parks, you
know, huge deals, lot of VC

751
00:40:10,920 --> 00:40:14,080
money, lot of private equity, a
lot of all of that, right.

752
00:40:14,080 --> 00:40:15,720
Someone will say, I have this
idea.

753
00:40:15,960 --> 00:40:18,520
They'll go to the street,
they'll gather some assets

754
00:40:19,120 --> 00:40:22,320
because they're not buying one.
Like they'll buy 5, they'll buy

755
00:40:22,320 --> 00:40:24,160
10.
So you talk about the, you know,

756
00:40:24,160 --> 00:40:27,440
this could be a forty $50
million deal when you own ten of

757
00:40:27,440 --> 00:40:29,320
those things.
Why do people do it?

758
00:40:29,320 --> 00:40:32,120
Because they net like 8850.
That's why they do it.

759
00:40:32,560 --> 00:40:35,480
So the net is incredible, the
attendance is incredible, the

760
00:40:35,480 --> 00:40:37,960
unit economics of the brand is
incredible.

761
00:40:38,040 --> 00:40:41,240
It's simple.
It's highly scalable for someone

762
00:40:41,240 --> 00:40:45,520
with capital.
A typical deal is going to be an

763
00:40:45,520 --> 00:40:50,240
SBA Express and an SBA say,
right, because 7A lends up to 5

764
00:40:50,240 --> 00:40:52,440
million as you know.
But that's very, very typical,

765
00:40:52,440 --> 00:40:54,520
whether it's brick and mortar
and non brick and mortar.

766
00:40:54,720 --> 00:40:59,040
We're doing SBA loans.
We do equipment leasing because

767
00:40:59,040 --> 00:41:01,480
in non brick and mortar we could
get an equipment lease.

768
00:41:02,000 --> 00:41:05,040
We could maybe use some
liquidity that they have on hand

769
00:41:05,240 --> 00:41:08,360
to cover the franchise fee.
As I said before, a lot of our

770
00:41:08,360 --> 00:41:10,880
deals are a bit of a hybrid.
How are you paying for the

771
00:41:10,880 --> 00:41:15,480
initial franchise fee of 50,000
cash out of my checking account

772
00:41:15,600 --> 00:41:17,440
Done.
What are you doing about the

773
00:41:17,440 --> 00:41:21,840
vehicle and the equipment which
is totaling A100110?

774
00:41:21,960 --> 00:41:24,720
I'm going to get a lease on the
van and I'm going to get an

775
00:41:24,720 --> 00:41:26,480
equipment lease on the
equipment.

776
00:41:26,600 --> 00:41:27,760
Got it.
OK.

777
00:41:27,760 --> 00:41:29,320
You know, how are you doing this
now?

778
00:41:29,640 --> 00:41:33,200
So we asked them, oh, I'm going
to go get an SBA express loan,

779
00:41:33,360 --> 00:41:36,840
Maxim loans 150.
So OK, deal is done, little bit

780
00:41:36,840 --> 00:41:39,520
of a hybrid deal and next deal
is a little bit different.

781
00:41:39,520 --> 00:41:42,400
What are you doing?
Well, I just bought an express

782
00:41:42,400 --> 00:41:44,040
personnel.
I need a small office.

783
00:41:44,240 --> 00:41:47,080
I'm going to go get this and I'm
going to bang out, you know, the

784
00:41:47,080 --> 00:41:49,400
funding that that way.
What are you going to do?

785
00:41:49,880 --> 00:41:52,480
Well, I'm quitting my job.
So my K rollover, I'm going to

786
00:41:52,480 --> 00:41:58,360
roll some of it into an ROBS and
I'm going to take 25350 out and

787
00:41:58,360 --> 00:42:00,720
just fund it that way, no debt,
I'm good to go.

788
00:42:00,720 --> 00:42:03,440
Great.
So if they're all a little

789
00:42:03,440 --> 00:42:06,680
different, Rob's plays a role
and a lot of our deals for

790
00:42:06,680 --> 00:42:09,280
people that are, that are
listening, that are not familiar

791
00:42:09,480 --> 00:42:12,400
with an ROBS, it was named by
the IRSI think it's a silly

792
00:42:12,400 --> 00:42:15,280
name, but whatever.
It stands for Rollover as a

793
00:42:15,280 --> 00:42:20,120
Business Startup and it falls
under ERISA law from the 1970s.

794
00:42:20,640 --> 00:42:24,520
Under the Employee Retirement
Income Security Act of 74, it

795
00:42:24,520 --> 00:42:28,040
states that you reserve the
right to self direct your

796
00:42:28,040 --> 00:42:31,480
retirement assets.
So if you quit your current

797
00:42:31,480 --> 00:42:36,200
employer or if you have a IRA
outside of your current

798
00:42:36,200 --> 00:42:39,240
employer, you can use dollar for
dollar.

799
00:42:39,240 --> 00:42:41,880
This is the key.
You can use dollar for dollar

800
00:42:41,880 --> 00:42:45,400
distribution.
No state, no federal, no early

801
00:42:45,400 --> 00:42:47,720
withdrawal penalty to purchase a
business.

802
00:42:47,840 --> 00:42:50,560
It's not just a franchise, it's
a business.

803
00:42:50,840 --> 00:42:53,360
Obviously franchising uses it
heavily.

804
00:42:53,400 --> 00:42:57,720
Another amazing tax strategy
that literally I've been doing

805
00:42:57,720 --> 00:43:01,040
this 25 years.
I would say 90 plus percent of

806
00:43:01,040 --> 00:43:03,360
people are.
That's a crazy stat.

807
00:43:03,680 --> 00:43:05,520
Don't know about it every day on
the phone.

808
00:43:05,520 --> 00:43:08,080
You know, I didn't know that.
I didn't know that every day,

809
00:43:08,120 --> 00:43:09,680
all day.
I would almost have to say to

810
00:43:09,680 --> 00:43:13,840
you, 99% of people don't know
that it exists.

811
00:43:13,840 --> 00:43:16,160
And if someone does know, it's
because they just started

812
00:43:16,160 --> 00:43:18,840
engaging in this process and
they're getting our emails in

813
00:43:18,840 --> 00:43:21,240
our newsletter and they're
really, you know, up to speed

814
00:43:21,240 --> 00:43:22,280
on.
Yeah, I heard about that.

815
00:43:22,720 --> 00:43:26,000
So great tax strategy.
It's not a loan, it's an

816
00:43:26,000 --> 00:43:28,600
investment.
There's no repayment period.

817
00:43:28,760 --> 00:43:31,120
It's not debt, it's an
investment.

818
00:43:31,480 --> 00:43:36,240
You could also pay yourself a
salary from your IRA and avoid

819
00:43:36,360 --> 00:43:39,440
the early withdrawal penalty.
Here's the other thing.

820
00:43:40,080 --> 00:43:42,920
Here's the other thing.
You still maintain tax deferred

821
00:43:42,920 --> 00:43:45,680
status.
So let's go back to the guy who

822
00:43:45,680 --> 00:43:50,640
bought a A, A, let's say A-100
got junk and he put 200 grand in

823
00:43:50,640 --> 00:43:54,880
there from his IRA and he sells
that business for 400 grand in

824
00:43:54,880 --> 00:43:57,400
the future.
The full 400 goes back in his

825
00:43:57,400 --> 00:44:01,560
IRA, tax deferred.
Yeah, I talk about that in the

826
00:44:01,560 --> 00:44:04,400
first book in particularly, but
in general that you

827
00:44:04,720 --> 00:44:08,760
understanding that even for
Angel investing, right.

828
00:44:08,880 --> 00:44:14,000
And, and part of the strategy
that I tell folks is that if you

829
00:44:14,120 --> 00:44:17,120
believe this business is if you
can do a revenue share or you're

830
00:44:17,120 --> 00:44:19,400
doing something where you're
getting paid back, you know,

831
00:44:19,400 --> 00:44:20,920
people do it for have been doing
it.

832
00:44:20,920 --> 00:44:25,280
Real estate industry promoted
using your self-directed IRA for

833
00:44:25,280 --> 00:44:27,320
a long.
You know, that has been one of

834
00:44:27,320 --> 00:44:31,120
the ways that a lot of people
could afford to buy real estate.

835
00:44:31,440 --> 00:44:34,560
And it to me with the first
book, it was like unlocking the

836
00:44:34,560 --> 00:44:37,560
millions that are sitting on the
sidelines in people's four O 1K

837
00:44:37,800 --> 00:44:41,880
And it's get instead of getting
your maybe 6 or 7-8 or nine

838
00:44:41,880 --> 00:44:45,160
percent, put it to work in
something that's generating

839
00:44:45,240 --> 00:44:50,760
income and growing an income
that then you you pay future tax

840
00:44:50,760 --> 00:44:53,600
on as income rather than, you
know, tax now.

841
00:44:53,600 --> 00:44:56,440
So I'm so glad that you that you
brought that up.

842
00:44:56,440 --> 00:45:00,760
Now do SP as because you know,
typically it's like, so it's,

843
00:45:00,920 --> 00:45:03,080
it's underwritten by the federal
government.

844
00:45:03,080 --> 00:45:06,400
So to underwrite the, the risk
and they usually typically look

845
00:45:06,400 --> 00:45:11,040
at, you know, hard assets, your
balance sheet, things like that.

846
00:45:11,040 --> 00:45:14,480
Do they give additional credit
in the plus column?

847
00:45:14,480 --> 00:45:18,000
Let's say if it's a franchise
versus I'm starting up a

848
00:45:18,000 --> 00:45:20,840
business.
That's a good question.

849
00:45:20,840 --> 00:45:23,520
So you mentioned balance sheets
and P&L's.

850
00:45:23,520 --> 00:45:26,080
So in my world they're startups.
So we don't have either of

851
00:45:26,080 --> 00:45:27,480
those.
Well, personal balance sheet.

852
00:45:28,040 --> 00:45:31,240
I meant like, OK, absolutely.
They're looking at net worth,

853
00:45:31,240 --> 00:45:33,520
they're looking at liquidity,
they're looking at cash flow.

854
00:45:33,880 --> 00:45:36,440
They're looking at if you do
have any direct industry

855
00:45:36,440 --> 00:45:38,560
experience that's helpful.
Is it a requirement?

856
00:45:38,560 --> 00:45:40,800
No.
But does this person have direct

857
00:45:40,800 --> 00:45:42,120
industry experience?
Yeah.

858
00:45:42,200 --> 00:45:45,480
They want to buy a gym and they
have a degree in kinesiology.

859
00:45:45,520 --> 00:45:47,040
OK, good.
It's an additive.

860
00:45:47,040 --> 00:45:49,560
It's not a requirement, even
though during the Obama

861
00:45:49,560 --> 00:45:52,160
administration they were killing
deals all day long.

862
00:45:52,400 --> 00:45:54,040
All day long.
And that was one of them that

863
00:45:54,040 --> 00:45:56,800
they would kill the deal on.
Do you have experience in this

864
00:45:56,800 --> 00:45:59,160
industry?
No denied.

865
00:45:59,160 --> 00:46:03,200
It was happening constantly.
That's where we really use

866
00:46:03,200 --> 00:46:05,800
Rob's.
So let's just say we sent

867
00:46:05,800 --> 00:46:09,000
someone to our contacts.
You might want to have one of

868
00:46:09,000 --> 00:46:10,480
them on the show.
His name's Anthony Bird.

869
00:46:10,480 --> 00:46:14,400
He's with Bennettrans.
They have a tax strategy that no

870
00:46:14,400 --> 00:46:19,760
one's doing that you would love.
And it it creates a tax free

871
00:46:20,320 --> 00:46:23,840
distribution of wealth upon the
sale of the business.

872
00:46:24,840 --> 00:46:27,600
And it's called, it's called, I
believe it's called the

873
00:46:27,600 --> 00:46:31,640
Rainmaker Advantage Plus.
And it, I had them on the show.

874
00:46:31,680 --> 00:46:36,160
It is a brilliant tax strategy.
And you're basically creating a

875
00:46:36,160 --> 00:46:41,720
Roth entity, right, preferred
shares that owns your business.

876
00:46:42,000 --> 00:46:44,480
That business grows
exponentially, you sell it.

877
00:46:44,680 --> 00:46:47,560
It would be a tax free
distribution because it's owned

878
00:46:47,560 --> 00:46:49,840
by the Roth.
So I don't want to take us off

879
00:46:49,840 --> 00:46:52,440
track, but I really think that
you would love that

880
00:46:52,440 --> 00:46:54,680
conversation.
No one is talking about it.

881
00:46:54,680 --> 00:46:58,120
No one is doing it.
Accept Bennett trends out of

882
00:46:58,120 --> 00:47:00,640
Pennsylvania again.
His name, His name's Anthony

883
00:47:00,640 --> 00:47:02,320
Byrd.
I could give you his contact

884
00:47:02,320 --> 00:47:05,120
information after the show.
Yeah.

885
00:47:05,720 --> 00:47:07,040
So.
Yeah.

886
00:47:07,080 --> 00:47:09,120
So you got, you know, Bank of
America's underwriting.

887
00:47:09,120 --> 00:47:12,120
Do we have collateral?
Is it non brick and mortar?

888
00:47:12,280 --> 00:47:15,720
I want the vehicle to be
attached to the equipment so

889
00:47:15,720 --> 00:47:17,920
that I can repossess.
Right.

890
00:47:17,920 --> 00:47:20,680
So a lot of times there's little
nuances to the deal.

891
00:47:20,680 --> 00:47:22,800
It's like, no, you're not going
to do a separate vehicle lease

892
00:47:23,000 --> 00:47:25,240
and a separate equipment lease.
You're doing it all with us.

893
00:47:25,800 --> 00:47:29,200
We want to control where the
equipment is being stored in the

894
00:47:29,200 --> 00:47:32,160
vehicle and so on.
So the like little things like

895
00:47:32,160 --> 00:47:36,120
that, you know, but the issue
that you described, I've never

896
00:47:36,120 --> 00:47:40,080
experienced.
I've had people get funded, I've

897
00:47:40,080 --> 00:47:45,480
had staged payments being given
to the franchise upon milestone

898
00:47:45,480 --> 00:47:48,400
completions of development.
Like did you pass the first

899
00:47:48,400 --> 00:47:51,400
inspection, electrical,
plumbing, you know, drywall,

900
00:47:51,480 --> 00:47:54,800
whatever, whatever the
milestones are, the bank is now

901
00:47:54,800 --> 00:47:57,520
doing staged payments all the
way to the end.

902
00:47:57,520 --> 00:47:59,920
And if there's money leftover,
it's operating capital the

903
00:47:59,920 --> 00:48:02,200
franchise could take and say,
all right, I'll take it as cash

904
00:48:02,480 --> 00:48:04,040
and I'll use it as operating
capital.

905
00:48:04,280 --> 00:48:07,840
You know, if they're over over
funded, over allocated for the

906
00:48:07,840 --> 00:48:11,520
deal, which is not that common.
It depends what state you're in.

907
00:48:11,520 --> 00:48:13,400
California is the opposite,
right?

908
00:48:13,400 --> 00:48:15,440
We're always on, we always need
more money.

909
00:48:15,520 --> 00:48:16,880
California, there's never
enough.

910
00:48:16,880 --> 00:48:18,680
We just seem, we're never on
time.

911
00:48:18,840 --> 00:48:21,640
We never get to CEO, we never
seem to close the loop.

912
00:48:21,800 --> 00:48:24,560
We always need more money.
So it just depends on the deal.

913
00:48:24,560 --> 00:48:26,400
But yeah, I think SBA has been
great.

914
00:48:26,520 --> 00:48:30,240
I think that they have an
ungodly amount of money to put

915
00:48:30,240 --> 00:48:32,320
towards Main Street and small
businesses.

916
00:48:32,320 --> 00:48:35,880
And without them, I, I'm, I,
without them, I wouldn't be in

917
00:48:35,880 --> 00:48:38,240
this business, quite frankly.
And you couldn't get a deal

918
00:48:38,240 --> 00:48:41,000
done.
Yeah, Well, I it's possible that

919
00:48:41,000 --> 00:48:44,160
that guy got bad advice.
You know, it's, it's very

920
00:48:44,160 --> 00:48:45,240
possible that you got bad
advice.

921
00:48:45,240 --> 00:48:48,880
I can't even imagine a, a
company setting up a franchise,

922
00:48:48,920 --> 00:48:53,360
as you know, and selling
franchises, you know, setting up

923
00:48:53,360 --> 00:48:57,640
a person to fail because they
sucked up all of their liquidity

924
00:48:57,640 --> 00:48:59,680
in just getting the license, you
know.

925
00:48:59,680 --> 00:49:03,040
So on the funding side of
things, you know, one of the

926
00:49:03,080 --> 00:49:07,360
like I promote on with the
community based capital concept.

927
00:49:07,360 --> 00:49:10,840
That is part of what I'm doing
with my framework with economic

928
00:49:10,840 --> 00:49:15,800
development authorities and with
Chambers and things like that is

929
00:49:15,840 --> 00:49:20,080
on two sides, sort of two sides
of of this piece that says, you

930
00:49:20,080 --> 00:49:24,320
know, somebody who's got a great
location or got a great thing

931
00:49:24,320 --> 00:49:28,320
that they've done, one of or
maybe 2 of that, they want to go

932
00:49:28,320 --> 00:49:30,240
and franchise it.
They want to do that and it

933
00:49:30,240 --> 00:49:34,080
costs money to set it up to be
able to sell franchises.

934
00:49:34,400 --> 00:49:37,160
I have a client through one of
my partners that we're working

935
00:49:37,160 --> 00:49:41,120
on a Reg A offering, which is
one of the types of crowdfunding

936
00:49:41,120 --> 00:49:44,600
that you can raise up to $75
million on a national basis.

937
00:49:44,600 --> 00:49:48,040
In this case, it's $20 million
so that he can have money in the

938
00:49:48,040 --> 00:49:52,760
bank to market and sell 300
franchises around the country.

939
00:49:53,200 --> 00:49:59,880
And, and because the idea that
then smaller investors, in that

940
00:49:59,880 --> 00:50:02,920
case, there's no, you know, you
can have a $1,000,000 investor,

941
00:50:02,920 --> 00:50:06,560
you can have a $10,000 investor,
but smaller investors have a

942
00:50:06,560 --> 00:50:10,000
potential to be on the top
umbrella of how this goes out

943
00:50:10,240 --> 00:50:14,960
within a community itself.
It's somebody that is, you know,

944
00:50:14,960 --> 00:50:17,600
opening up their second location
and they're raising money from

945
00:50:17,600 --> 00:50:22,040
their customers to be able to
fund the growth of this.

946
00:50:22,080 --> 00:50:27,280
Or even with somebody wanting to
start, you know, buy a franchise

947
00:50:27,280 --> 00:50:31,720
themselves using an Interstate
exemption in their state, which

948
00:50:31,720 --> 00:50:34,280
is allows them to raise,
depending on the state, up to 5

949
00:50:34,280 --> 00:50:40,680
million from their neighbors.
Their, you know, their to be go

950
00:50:40,720 --> 00:50:44,120
and build this business up
because they have this vision or

951
00:50:44,120 --> 00:50:47,480
they want to buy a master
franchise, pulling it together.

952
00:50:47,680 --> 00:50:52,080
So it opens up the opportunity
to people that aren't already

953
00:50:52,080 --> 00:50:56,520
millionaires or don't already
have, you know, 3 or $400,000 to

954
00:50:56,520 --> 00:51:01,040
put into this, but can create a
community based of funding to be

955
00:51:01,040 --> 00:51:03,280
able to lead the way.
Right.

956
00:51:03,640 --> 00:51:06,080
Do you have that?
It's still very new.

957
00:51:06,080 --> 00:51:09,000
I'm like, we just like you were
talking about like nobody knows

958
00:51:09,000 --> 00:51:10,680
about rock.
Well, nobody knows about

959
00:51:10,680 --> 00:51:12,880
community based finance or
crowdfunding much.

960
00:51:13,560 --> 00:51:17,640
But do you see any of that?
Do you see any of the master

961
00:51:17,640 --> 00:51:20,880
brands that you're working with
that are, you know, encouraging

962
00:51:20,880 --> 00:51:25,480
that kind of of crowd based roll
up of this kind of thing?

963
00:51:25,480 --> 00:51:26,400
Do you ever see?
Never.

964
00:51:26,760 --> 00:51:30,080
Never.
OK, Yeah, a lot of times if

965
00:51:30,080 --> 00:51:33,960
someone's awarding a deal to
someone, they want to know that

966
00:51:33,960 --> 00:51:38,160
that's someone has a history of
success and has the money, not

967
00:51:38,160 --> 00:51:40,800
that they need to go get it.
And I know there's great people

968
00:51:40,800 --> 00:51:44,120
and very qualified people that
don't have any money.

969
00:51:44,440 --> 00:51:46,160
But the brand wants to know,
like, if you don't have any

970
00:51:46,160 --> 00:51:47,680
money, why?
Right.

971
00:51:47,760 --> 00:51:52,160
And if you need that amount of
money from investors, clearly

972
00:51:52,160 --> 00:51:53,560
you have not made any money
yourself.

973
00:51:53,560 --> 00:51:55,720
So that's kind of the rub with
the franchise.

974
00:51:55,720 --> 00:51:57,520
Or it's like, we have this, we
love this guy.

975
00:51:57,760 --> 00:51:58,840
Like, he's great.
He has.

976
00:51:59,000 --> 00:52:00,760
But he has 20 grand in his
checking account.

977
00:52:00,760 --> 00:52:02,920
Like, what are you going to?
Oh, no, no, he's got, you know,

978
00:52:02,920 --> 00:52:05,440
he's got Karen, right?
And that's what, and that's

979
00:52:05,440 --> 00:52:06,880
where the brand is like.
I know.

980
00:52:06,880 --> 00:52:10,480
But we wanted to know that he
was successful.

981
00:52:10,480 --> 00:52:13,760
He's not showing any history of
success other than the fact that

982
00:52:13,760 --> 00:52:15,800
we like him because he has no
money and we deal with that a

983
00:52:15,800 --> 00:52:18,680
lot.
Well, OK, let me I could see it

984
00:52:18,760 --> 00:52:26,320
being for somebody that is
exiting out of the field that

985
00:52:26,320 --> 00:52:31,120
has expertise or has been doing
it in an unfranchised model

986
00:52:31,120 --> 00:52:35,400
successfully.
And now, you know, wants to buy

987
00:52:35,840 --> 00:52:40,440
the master license for what is a
national brand for the same kind

988
00:52:40,440 --> 00:52:43,000
of business that they're doing
right.

989
00:52:43,000 --> 00:52:47,560
And and they can go to their
chamber because they know them

990
00:52:47,560 --> 00:52:50,960
successfully as this and say,
hey, I'm doing this in my

991
00:52:50,960 --> 00:52:52,960
community.
I want to do this across the

992
00:52:52,960 --> 00:52:57,600
state under this brand, be my
silent partners in this and they

993
00:52:57,600 --> 00:53:01,880
know what they need and they're
getting their their war chest

994
00:53:01,880 --> 00:53:04,800
together and then they're going
to the franchise.

995
00:53:04,800 --> 00:53:06,600
Got it.
Yeah, I, I mean, could it be

996
00:53:06,600 --> 00:53:08,240
happening behind the scenes?
Possibly.

997
00:53:08,240 --> 00:53:09,880
I'm not seeing the deals that I
do.

998
00:53:09,880 --> 00:53:12,560
The deals are being funded with
transparency.

999
00:53:12,560 --> 00:53:15,320
I see where the money's coming
from and it's not and it's not

1000
00:53:15,320 --> 00:53:18,160
there, at least not yet.
But I'm sure you'll change that.

1001
00:53:19,480 --> 00:53:21,920
Maybe this podcast right now is
going to Jake that's.

1002
00:53:21,920 --> 00:53:23,480
Right, it's going to change it
right now.

1003
00:53:25,040 --> 00:53:27,320
OK.
So Cliff, as we wrap up here,

1004
00:53:27,480 --> 00:53:30,880
what have you not shared with
the audience that you feel like

1005
00:53:30,880 --> 00:53:33,640
the investors, entrepreneurs
listening out there need to

1006
00:53:33,640 --> 00:53:36,720
know?
One thing that clients take a

1007
00:53:36,720 --> 00:53:40,000
lot of value in is what's
trending and it's in our book

1008
00:53:40,000 --> 00:53:41,800
and we talk about the five
trends.

1009
00:53:41,800 --> 00:53:45,120
And I think that's people want
to know how do I hedge Amazon,

1010
00:53:45,320 --> 00:53:48,960
how do I hedge AI, quantum
computing, big question mark,

1011
00:53:49,240 --> 00:53:53,120
like how do you hedge all that?
We focus on any business that

1012
00:53:53,120 --> 00:53:57,120
involves the use of tools.
The trades are grossly under,

1013
00:53:58,000 --> 00:54:00,760
under occupied.
People don't realize what's

1014
00:54:00,760 --> 00:54:03,840
coming and it's a big issue.
And thank goodness, I hate to

1015
00:54:03,840 --> 00:54:07,200
say this, thank goodness that
robotics and humanoids are

1016
00:54:07,200 --> 00:54:10,680
entering because there's
probably, if you listen to the

1017
00:54:10,680 --> 00:54:17,400
last the CEO of Ford was on on
CNBC, there are over 600,000

1018
00:54:17,720 --> 00:54:21,840
employees in America missing
from the manufacturing industry.

1019
00:54:22,040 --> 00:54:26,000
600,000 Wow, you are not making
that up.

1020
00:54:26,680 --> 00:54:27,680
You're not.
I'm sorry.

1021
00:54:27,680 --> 00:54:30,960
The only way you're making that
up is when you have a humanoid

1022
00:54:30,960 --> 00:54:36,240
or robotics working 2471 robot
doing the job of four to seven

1023
00:54:36,240 --> 00:54:38,400
people, which seems to be the
math right now.

1024
00:54:38,640 --> 00:54:41,880
I do see that trade schools, I
tell, like the young people.

1025
00:54:41,880 --> 00:54:45,840
There was some kids here working
on my air conditioner a couple

1026
00:54:45,840 --> 00:54:50,160
months back, 20 something like
like only a couple years out of

1027
00:54:50,160 --> 00:54:53,840
high school, but had gone to
want to combine high school

1028
00:54:53,840 --> 00:54:56,520
trade school to get their HVAC
license.

1029
00:54:56,960 --> 00:55:01,880
And I said that's the path to go
because yeah, you start out not

1030
00:55:01,880 --> 00:55:04,640
making a ton of money, but you
get there within a very short

1031
00:55:04,640 --> 00:55:08,680
period of time when you get your
certifications and no robot is

1032
00:55:08,680 --> 00:55:12,680
going to replace you and no AI.
Now AI will make your your job

1033
00:55:12,680 --> 00:55:14,960
easier.
You'll have tools, things like

1034
00:55:14,960 --> 00:55:18,240
that, but there's still going to
be human intelligence and

1035
00:55:18,240 --> 00:55:22,000
involvement in a whole lot of
these service trades that we

1036
00:55:22,000 --> 00:55:25,360
take for granted.
And people have aged out and our

1037
00:55:25,360 --> 00:55:28,120
education system got into this
thing that everybody's got to go

1038
00:55:28,120 --> 00:55:31,600
get a liberal arts degree
degree, be a lawyer or doctor

1039
00:55:31,840 --> 00:55:36,880
and it's or marketing person or,
you know, but like go get a

1040
00:55:36,880 --> 00:55:42,640
trade skill and buy a franchise
for it, you know, and you can,

1041
00:55:42,920 --> 00:55:46,000
you will, you know, get your
certifications and then, you

1042
00:55:46,000 --> 00:55:50,200
know, because if like robot, you
can D print a house, But we're a

1043
00:55:50,200 --> 00:55:53,360
long ways away from that being
the normal way that houses are

1044
00:55:53,360 --> 00:55:55,600
built.
It needs people to build a house

1045
00:55:55,600 --> 00:55:59,440
and a person to drive a machine
and, you know, all those kinds

1046
00:55:59,440 --> 00:56:01,680
of things.
So I could see that being a huge

1047
00:56:01,680 --> 00:56:06,600
opportunity for people that get
it and don't don't get a chip on

1048
00:56:06,600 --> 00:56:09,080
their shoulder from being
replaced, but feel it.

1049
00:56:09,080 --> 00:56:13,560
But like, read your book and
take it like skate the of where

1050
00:56:13,560 --> 00:56:16,920
it's going and be there.
That's exactly what the trends

1051
00:56:17,080 --> 00:56:19,280
are.
Anything evolving tools,

1052
00:56:19,560 --> 00:56:23,080
anything evolving, the silver
tsunami, the aging of America,

1053
00:56:23,360 --> 00:56:25,760
anything evolving, the
humanization of pets and

1054
00:56:25,760 --> 00:56:28,040
animals.
We're not repopulating, right?

1055
00:56:28,040 --> 00:56:30,600
So we're buying more dogs and
cats and animals.

1056
00:56:30,960 --> 00:56:34,160
Anything evolving, anti aging,
biohacking, right?

1057
00:56:34,160 --> 00:56:36,920
Anything in that category.
And you just said it, our public

1058
00:56:36,920 --> 00:56:39,760
schools, our schools in general
have failed, but they failed a

1059
00:56:39,760 --> 00:56:42,440
nation.
Like, think about it like you

1060
00:56:42,440 --> 00:56:45,720
gave people bad advice and it's
a business.

1061
00:56:45,960 --> 00:56:49,440
All the bad advice, all these
kids are in debt, 150 grand that

1062
00:56:49,440 --> 00:56:51,400
even the federal government is
like, you know what, we'll pay

1063
00:56:51,400 --> 00:56:53,200
for it.
You remember that whole thing

1064
00:56:53,200 --> 00:56:55,120
which that's ending, that's
ending now.

1065
00:56:55,120 --> 00:56:56,960
He's not going to pay for it.
This administration.

1066
00:56:57,200 --> 00:56:59,800
So we told all these people to
do all these things.

1067
00:56:59,800 --> 00:57:01,840
That's like wrong, wrong and
wrong.

1068
00:57:02,040 --> 00:57:03,920
You want to create wealth,
become a plumber.

1069
00:57:04,120 --> 00:57:06,880
We heard this back in the Obama.
If you remember Joe the plumber,

1070
00:57:07,360 --> 00:57:08,720
he's like, what?
Why do I got to go to college

1071
00:57:08,720 --> 00:57:10,320
for?
I'm making 250 grand a year.

1072
00:57:10,320 --> 00:57:12,240
I'm a plumber.
You know, it was like one of

1073
00:57:12,240 --> 00:57:14,600
those conversations during one
of his campaigns.

1074
00:57:14,880 --> 00:57:16,680
And it was like, yeah.
And that guy brought attention

1075
00:57:16,680 --> 00:57:18,560
to it.
Mike Rowe brings a lot of

1076
00:57:18,560 --> 00:57:21,520
attention to the trades and the
voids that are being filled.

1077
00:57:21,800 --> 00:57:23,920
And you just nailed it.
Why is it a problem?

1078
00:57:24,240 --> 00:57:27,040
Because Gen.
Xers and Baby Boomers are aging

1079
00:57:27,040 --> 00:57:29,000
out, and there's nobody
backfilling them.

1080
00:57:29,560 --> 00:57:32,480
And it's a big issue.
So anyone listening, I want to

1081
00:57:32,480 --> 00:57:33,640
buy business.
How do I win?

1082
00:57:34,160 --> 00:57:36,040
By a business that requires the
use of a tool?

1083
00:57:36,240 --> 00:57:38,800
By anything involving the aging
graying of America.

1084
00:57:39,040 --> 00:57:41,320
Get involved in something pet
related.

1085
00:57:41,520 --> 00:57:43,640
Dog daycare, dog boarding, dog
training.

1086
00:57:43,640 --> 00:57:47,600
I don't care, you'll make money.
It's 150 billion U.S. market

1087
00:57:47,600 --> 00:57:48,640
alone.
Just pads.

1088
00:57:48,880 --> 00:57:52,280
Get involved in youth enrichment
and this country is aging

1089
00:57:52,280 --> 00:57:54,880
rapidly.
In the next 10 years we will be

1090
00:57:54,880 --> 00:57:57,880
what is referred to as a super
aged nation.

1091
00:57:58,640 --> 00:58:03,040
Japan and Italy, where 20% of
your population is over 60.

1092
00:58:03,640 --> 00:58:05,720
That's just scare the crap out
of everybody listening.

1093
00:58:06,000 --> 00:58:09,560
You know what that means?
It means that you're going to

1094
00:58:09,560 --> 00:58:12,320
have a senior caring for a
senior.

1095
00:58:12,640 --> 00:58:16,560
That's what that means.
A healthy society has youth

1096
00:58:16,560 --> 00:58:20,360
caring for their elderly.
This country will have a 60 year

1097
00:58:20,360 --> 00:58:23,160
old caring for an 80 year old.
And that is a problem.

1098
00:58:23,440 --> 00:58:27,800
And This is why Elon continues
to scream, you must repopulate

1099
00:58:27,800 --> 00:58:30,600
to have a great nation.
You must have youth to have a

1100
00:58:30,600 --> 00:58:32,680
great nation.
And if you don't know what any

1101
00:58:32,680 --> 00:58:35,400
of this means, look at Japan and
what happened to them.

1102
00:58:35,400 --> 00:58:37,760
It's been a lost two decades
over there.

1103
00:58:38,000 --> 00:58:41,080
Real estate is just everything
about Japan's a disaster.

1104
00:58:41,320 --> 00:58:43,200
The paying people to get
married, the paying people to

1105
00:58:43,200 --> 00:58:45,200
have babies.
It's a mess and we're right

1106
00:58:45,200 --> 00:58:47,200
behind them.
That's the reality of it.

1107
00:58:47,280 --> 00:58:48,840
We're right behind them.
So that's it.

1108
00:58:48,840 --> 00:58:50,880
I just trends.
I think trends are an important

1109
00:58:50,880 --> 00:58:52,840
part of what we do.
What's working?

1110
00:58:52,840 --> 00:58:56,800
What isn't working?
Yeah, absolutely, absolutely.

1111
00:58:56,800 --> 00:58:58,880
I think trade schools are
definitely.

1112
00:58:58,880 --> 00:59:00,840
That would be.
I feel like I keep thinking

1113
00:59:00,840 --> 00:59:06,240
that, you know, the big, you
know, big supply chain people,

1114
00:59:06,240 --> 00:59:10,160
whatever they would invest in
the trade schools, you know, to

1115
00:59:10,160 --> 00:59:12,040
do that.
But I feel like it's going to

1116
00:59:12,040 --> 00:59:14,560
end up being something that
falls on the French.

1117
00:59:14,960 --> 00:59:19,920
Somebody gets it, builds a
franchise, you know, a franchise

1118
00:59:19,920 --> 00:59:23,600
model for different, you know,
how do you drive a forklift?

1119
00:59:23,920 --> 00:59:26,640
How do you, you know, how do you
use heavy equipment?

1120
00:59:26,640 --> 00:59:30,800
How do you do these things?
And for those folks, because you

1121
00:59:30,800 --> 00:59:33,560
know, in some enlightened
communities, they have the trade

1122
00:59:33,560 --> 00:59:38,920
schools or tech schools as part
of their, you don't just get

1123
00:59:38,920 --> 00:59:42,080
your AP English, right?
That's maybe one track for

1124
00:59:42,080 --> 00:59:44,640
somebody.
But you go get, you know, how to

1125
00:59:44,640 --> 00:59:50,560
draw blood, how to, you know,
push a something through a push

1126
00:59:50,560 --> 00:59:53,800
a, a hospital bed through a
hallway, right?

1127
00:59:53,800 --> 00:59:57,360
How do you lay cable?
You know, these kinds of things

1128
00:59:57,360 --> 00:59:59,280
that they teach people.
They do that.

1129
00:59:59,280 --> 01:00:03,240
But then we've got the folks
that you know, are now 2829.

1130
01:00:03,800 --> 01:00:07,640
They can't get a job that need
those skills and we're there's

1131
01:00:07,640 --> 01:00:11,440
really not a lot of people
talking about the need for re

1132
01:00:11,440 --> 01:00:16,400
education in these trade skills
that we are desperately need of.

1133
01:00:16,400 --> 01:00:20,640
We've got, you know, and, and so
many people that are willing,

1134
01:00:20,640 --> 01:00:22,520
you know, so many people willing
to do that.

1135
01:00:22,520 --> 01:00:25,200
Actually some of these trade
skills and learn some of these

1136
01:00:25,200 --> 01:00:28,880
stuff.
Regular old Americans have I've

1137
01:00:28,880 --> 01:00:31,520
been so conditioned for liberal
arts and things like that.

1138
01:00:31,520 --> 01:00:34,840
They don't where they can't,
they can't shift their brain to

1139
01:00:35,040 --> 01:00:37,040
to be that way.
And it's but, and we're going

1140
01:00:37,040 --> 01:00:40,320
to, we'll, we'll, we'll hit a
crisis point before, you know,

1141
01:00:40,320 --> 01:00:43,320
it does a massive shift, as it
always is when you have a

1142
01:00:43,360 --> 01:00:49,080
societal shift that way.
It's the CEO said we have 5000,

1143
01:00:49,080 --> 01:00:53,560
this is just Ford, just Ford.
We have 5000 open positions

1144
01:00:53,560 --> 01:00:56,000
paying six figures and we can't
fill it.

1145
01:00:56,200 --> 01:01:00,000
So that's why your car is
sitting on a lift in our

1146
01:01:00,000 --> 01:01:04,680
dealership somewhere.
That's why things at 5006 figure

1147
01:01:04,680 --> 01:01:08,880
jobs cannot be filled by one
company in the United States.

1148
01:01:09,000 --> 01:01:12,760
And that's why he said there's a
600,000 employee gap just in the

1149
01:01:12,760 --> 01:01:16,400
manufacturing space in America.
This is a huge, huge issue, and

1150
01:01:16,520 --> 01:01:18,800
it takes this kind of
conversation to thought provoke

1151
01:01:18,800 --> 01:01:21,440
people because right now, if
someone has child that's on

1152
01:01:21,440 --> 01:01:23,600
their way to college that
doesn't want to go, but they're

1153
01:01:23,600 --> 01:01:26,240
always being forced to,
everyone's always forcing them.

1154
01:01:26,240 --> 01:01:27,600
You got to go to college.
Like you go.

1155
01:01:27,880 --> 01:01:29,480
You got to go.
You got to go.

1156
01:01:29,480 --> 01:01:32,800
It's like I do, right?
Everyone has been told you got

1157
01:01:32,800 --> 01:01:33,920
to go.
Do you know what the average

1158
01:01:33,920 --> 01:01:36,160
home ownership age is in America
right now?

1159
01:01:36,160 --> 01:01:38,360
40 Do that math.
What?

1160
01:01:38,360 --> 01:01:40,000
Why?
Why would the average homeowner?

1161
01:01:40,120 --> 01:01:41,720
Oh, well, real estate's
expensive.

1162
01:01:41,920 --> 01:01:45,760
That problem isn't a new problem
if you're 40 years of age.

1163
01:01:45,760 --> 01:01:48,000
Can you imagine?
I have a family member who

1164
01:01:48,000 --> 01:01:50,000
bought their first house in New
York.

1165
01:01:50,000 --> 01:01:53,240
They're over 40.
They're just now celebrating

1166
01:01:53,360 --> 01:01:56,520
home ownership in America.
At 40, they're already halfway

1167
01:01:56,520 --> 01:01:58,560
through their life.
You can't make this shit up.

1168
01:01:58,560 --> 01:01:59,480
I'm.
I'm serious.

1169
01:01:59,480 --> 01:02:01,960
It's like, it's absurd.
And it's like, why did it take

1170
01:02:01,960 --> 01:02:04,720
you so long to do it?
My wife had 100 grand in student

1171
01:02:04,720 --> 01:02:06,560
loans.
I had 150 grand in student

1172
01:02:06,560 --> 01:02:08,760
loans.
Next question, Do you do what?

1173
01:02:08,760 --> 01:02:10,960
You got the dead end?
No, no, I know you do.

1174
01:02:11,720 --> 01:02:14,280
I know you didn't because 60% of
people have a college degree,

1175
01:02:14,280 --> 01:02:16,600
don't even do what they went to
school for that they're still

1176
01:02:16,600 --> 01:02:17,920
paying on.
It's absurd.

1177
01:02:18,080 --> 01:02:21,600
The whole thing is a business.
It's a racket and it's time to

1178
01:02:21,600 --> 01:02:25,200
expose this crap and really
protect our children and their

1179
01:02:25,200 --> 01:02:27,160
future because we're mortgaging
them.

1180
01:02:27,520 --> 01:02:31,000
Yeah, When is Ford going?
Is Ford going to like sponsor a

1181
01:02:31,000 --> 01:02:33,880
school for auto manufacturing
skills?

1182
01:02:34,400 --> 01:02:36,960
Right, you see, and then you say
that, which is logical, right?

1183
01:02:37,080 --> 01:02:39,960
And then what happens?
Well, who runs the country?

1184
01:02:40,280 --> 01:02:41,800
They were.
They're more interested in you

1185
01:02:41,800 --> 01:02:45,240
picking a pronoun than you being
able to learn how to use your

1186
01:02:45,240 --> 01:02:47,760
hands and be self-sufficient.
That's the problem.

1187
01:02:48,360 --> 01:02:51,800
Our energy is displaced.
Our loyalty is displaced.

1188
01:02:52,160 --> 01:02:54,960
It's very easy fix.
Correlated it just that they're

1189
01:02:55,160 --> 01:03:00,320
it's investing in the nobody in
in the current administration

1190
01:03:00,360 --> 01:03:03,040
and they're reimagining the
Department of Education is

1191
01:03:03,040 --> 01:03:06,000
talking trade schools, OK,
They're not talking trade

1192
01:03:06,000 --> 01:03:07,800
schools.
It it's not it happens at a

1193
01:03:07,800 --> 01:03:11,200
local level or it happens
because a business is a shortage

1194
01:03:11,200 --> 01:03:16,480
of skill sets and they say, OK,
we are going to sponsor this

1195
01:03:16,800 --> 01:03:20,960
training at a Technical College
and put the equipment in there

1196
01:03:21,000 --> 01:03:23,400
bring some of our people in
there.

1197
01:03:23,480 --> 01:03:27,920
I mean, we just here at Georgia
though, like we had in one of

1198
01:03:27,920 --> 01:03:32,040
our plans to crew to build E
batteries that you use at homes

1199
01:03:32,040 --> 01:03:35,640
and use it everywhere.
We had 100 people from another

1200
01:03:35,640 --> 01:03:39,160
from the parent company in
another country here teaching

1201
01:03:39,400 --> 01:03:43,960
Georgians how to do those jobs.
And they all got picked up,

1202
01:03:43,960 --> 01:03:46,840
thrown in jail and deported.
And now we don't have anybody to

1203
01:03:46,840 --> 01:03:49,960
teach the Georgians how to do
those manufacturing jobs.

1204
01:03:49,960 --> 01:03:52,080
I remember that story, yeah.
Right.

1205
01:03:52,240 --> 01:03:55,080
So you know, that's, you know,
they're, they're, it's messed up

1206
01:03:55,080 --> 01:03:58,640
all over the place because they
don't, they're not looking at

1207
01:03:58,920 --> 01:04:03,400
the economy and the skills that
are needed and that you can

1208
01:04:03,400 --> 01:04:07,200
take, you can't take a coal
miner and teach them software

1209
01:04:07,200 --> 01:04:11,080
development skills, but you can
teach them how to go drive a

1210
01:04:11,080 --> 01:04:13,400
forklift.
Right, right on.

1211
01:04:13,800 --> 01:04:15,240
Right.
Yeah, So.

1212
01:04:15,880 --> 01:04:19,320
OK, Cliff, wow.
We we've rounded the block there

1213
01:04:19,320 --> 01:04:23,040
and back again.
So thank you so much for being

1214
01:04:23,040 --> 01:04:26,680
on the show.
This has been a vibrant

1215
01:04:26,680 --> 01:04:29,160
conversation.
And I want to remind people to

1216
01:04:29,360 --> 01:04:36,520
to go visit the Frenocity
KNOCIT, y.com and the book Be

1217
01:04:36,520 --> 01:04:38,000
the Brand.
No.

1218
01:04:38,760 --> 01:04:40,240
Beyond the brand.
Beyond the brand.

1219
01:04:40,760 --> 01:04:45,840
It's FRANOCIT y.com and the book
is Beyond the Brand.

1220
01:04:46,040 --> 01:04:48,800
Beyond the brand.
OK, Cliff, thank you so much for

1221
01:04:48,800 --> 01:04:50,800
being a part of the.
Thank you Karen, Joe and our

1222
01:04:50,800 --> 01:04:53,680
community and onwards and
upwards everybody.

1223
01:04:54,400 --> 01:04:57,520
Thank you.
Thank you for listening to this

1224
01:04:57,520 --> 01:05:00,360
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1225
01:05:00,360 --> 01:05:05,120
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1226
01:05:07,840 --> 01:05:11,880
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1227
01:05:11,880 --> 01:05:16,320
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1228
01:05:16,320 --> 01:05:20,280
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1229
01:05:20,640 --> 01:05:24,080
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1230
01:05:24,400 --> 01:05:27,880
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1231
01:05:27,880 --> 01:05:30,280
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1232
01:05:30,280 --> 01:05:34,680
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1233
01:05:35,160 --> 01:05:39,120
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1234
01:05:39,120 --> 01:05:42,240
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1235
01:05:42,240 --> 01:05:44,800
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1236
01:05:44,800 --> 01:05:48,120
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1237
01:05:48,120 --> 01:05:52,080
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1238
01:05:52,080 --> 01:05:56,440
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1239
01:05:56,440 --> 01:05:59,520
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1240
01:05:59,520 --> 01:06:02,760
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1241
01:06:02,760 --> 01:06:06,120
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1242
01:06:06,440 --> 01:06:09,760
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1243
01:06:10,120 --> 01:06:13,080
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1244
01:06:13,080 --> 01:06:16,080
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1245
01:06:16,080 --> 01:06:20,720
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1246
01:06:20,720 --> 01:06:24,120
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1247
01:06:24,120 --> 01:06:27,400
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1248
01:06:27,400 --> 01:06:29,600
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1249
01:06:29,600 --> 01:06:32,760
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1250
01:06:32,760 --> 01:06:35,840
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1251
01:06:35,840 --> 01:06:39,120
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