Q: There are hundreds of franchises out there. How can someone select the right one?
A: A lot of people make the wrong decision based on what they see or what they think is hot. There are good franchises and bad franchises. It’s very important to do a lot of research on the company. Call the best franchisees and figure out why they are doing well. But don’t get too excited, because you need to call the ones that are struggling and find out why. Then talk to some of the average ones. You also need to ask yourself, what would you enjoy doing every day? I used to get a lot of calls about Krispy Kreme doughnuts because people saw lines out the door. What they didn’t take into account was that someone had to be there – seven days a week at 3 a.m. – making donuts.
Q: What is the biggest misconception people have about franchises?
A: You have to understand that you are going to work. I hear that from a lot of clients: It’s a franchise, so it can’t fail. Absolutely, it can fail. Don’t depend on the franchise to make it work; it works because the franchisee gets in there and makes it work.
Q: Your company, the Franchise Center, is a franchise itself. How do you make money?
A: The service is free. If we help you find the right business, and you invest in it, the franchise company pays us a portion of the franchise fee. We equate it to buying a house. You would rarely buy a home without using a Realtor, and you shouldn’t buy a franchise without using a franchise broker.
Q: What are the hottest franchises right now?
A: The service industry is hot. We live in a world where if you can make my life easier, I will pay you. Home-improvement franchises are hot. Everything from handyman to maid services to hardwood flooring. The senior-care industry is also growing, as is children’s education.
Q: What franchises are declining in popularity?
A: The Internet has changed a lot of industries. There used to be a lot of travel franchises, but those have really slowed down. Photography franchises have also slowed down.
Q: Some Quiznos franchisees have complained about support provided by the corporate parent. What are your thoughts?
A: I am not intimately familiar with Quiznos. But it’s something that we’ve seen with a lot of companies. They may have a very good product and a very good model, but sometimes the sales process goes faster than the development process. A fast- growing system can be a great thing, but you need to make sure the franchise company has the ability to support that growth as it is happening.
Q: What is the worst franchise match you’ve made?
A: Me and my first franchise. I bought a couple of Fantastic Sam’s hair salons. I bought that business because I thought, “Everyone gets their hair cut.” It turned out that it wasn’t a business that I enjoyed. I don’t cut hair, so I was bored. I sold that after about a year. I then bought three (Mr. Handyman) franchises, which I eventually sold. That was a fun business.
Q: How did you end up in Denver?
A: I am an Air Force brat. I was born in Hawaii and went to high school in Germany. I came to Denver in 1978 and fell in love with the city the moment I got here. I have had a huge desire my whole life to be self-employed. My first business was Suzy Q Deli (not a franchise) on the 16th Street Mall. I started Suzy Q after my sister suddenly passed away. Her death made me realize that if I want this, I have to go after it. That was a business that I loved.
Edited for space and clarity from an interview by staff writer Will Shanley.
