Kim Daly - Franchising to Financial Freedom
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We've all heard of the "Match-Making Queen" to find your significant other, but have you heard of the Franchising Queen? Kim Daly is making waves in the investing world in how investors approach buying a franchise and finding the right fit for them! In this episode, we dive into bridging the gap on how to get started in franchising and why this might be the best fit for your next investing venture!
In this episode, hosted by Mike Swenson, we discussed:
- Kim Daly, a franchise consultant, has spent the last 20 years helping people achieve financial freedom through franchising opportunities
- She a best-selling co-author of the book Franchising Freedom and she is an expert in the space of franchising
- When you invest in a franchise, you're not buying a widget, you're buying leadership, proven systems, marketing, & people
- Entrepreneurship versus franchising is buying down that learning curve, it's partnering yourself with people who've already figured it out
- Money and time in a franchise are inversely related. The less money you spend, the more time you can expect to invest. The more money you spend, the less impact it should have on your time investment
- It takes a really strong franchisor to corral all of the personalities and all of the different ways that we interpret information and then drive that brand forward where we're executing consistently
Timestamps
00:00 - Intro and overview on Kim ‘s career
05:23 - Entrepreneurship versus franchising
17:47 - Talking about franchising in this modern day
23:46 - Talking about vertical integration in franchising
31:13 - Brands in franchising
43:33 - Knowing more about Kim
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Full transcript here:
Mike Swenson
Welcome to The REL freedom podcast where we inspire you to pursue your passion to gain time and financial freedom through opportunities in real estate. I'm your host, Mike Swenson. Let's get some real freedom together.
Mike Swenson
Welcome, everybody to another episode of REL freedom stories. I am your host, Mike Swenson. And today we're going to talk about building time and financial freedom through something that's a little bit different than we've covered on these episodes - Franchising. I know for a lot of people, you're excited about building businesses, you're excited about building financial freedom. And maybe you haven't ever thought about partnering up with a franchise, instead of going at it and doing it all yourself, Hey, there's this great option out there of a franchise and everybody probably thinks of fast food chains or restaurant chains when they think of franchising, but there's a whole world out there of other opportunities.
Mike Swenson
And I was telling Kim before we got started that I actually was a part of a franchise launch with my real estate team previously to where I'm at today. And we got to go through the process of building a team starting a franchise launching the franchise. And so there's so much more opportunity there than the average person would think about. And so you know, Kim is going to talk about that with us and just share how it's such an involved process. It's about finding a good fit, and it really can be a great tool for you as you pursue financial and time freedom through opportunities in real estate. So I've got Kim Daly here she is a franchise consultant has spent the last 20 years helping people achieve financial freedom through franchising opportunities. Best Selling co author of the book franchising freedom also has Kim daly.tv. And you are an expert in the space of franchising. So we're so excited to hear what you have to share. Welcome to the show.
Kim Daly
Thanks, Mike. That was a nice introduction. I'm very happy to be here.
Mike Swenson
For the folks listening. Give them a little bit of your background and how you got into the industry of franchising.
Kim Daly
Okay, Mike. So as you read on my bio, I had been a franchise consultant for 20 years. And I don't even know how that happened. Because I'm barely 35 years old.
Mike Swenson
As a teenager, right?
Kim Daly
Many years went by like that. Yep. So what is a franchise consultant that means that I help people who have the idea of I think I want to own a franchise skin, but I don't really know what I want to do, or hey, I, you know, at Chick fil A, and I love to play, can I own it to play like, you know, wherever people are starting, I need them right there. And I help to guide their thinking, coach their process, teach them what they need to know, what are the questions? Who should you be talking to? How do you finance a franchise? How do you make sense of the legal documents of a franchise? I offer a free service that just helps guide people through that so that they can say yes, I think out there on your own.
Kim Daly
Selecting a franchise on your own is like a really daunting task, like, how do you do it? How do you know what's the right business? How do you know you can afford? How do you even know what your options are? Not to mention, as we get into this conversation, I'm going to say that when you invest in a franchise, you're not buying a widget, you're buying leadership, you're buying people, right? Because the widget that's on the market today that you know, your business will be involved with, is only as good as the leadership and the people behind it that are going to continue to adapt and drive that widget forward over time, right? So it's always about people.
Kim Daly
And how do you know when you're looking for a company? Like, if there are 10 companies in a space? How do you know which people are the good ones, which are the ones that actually care about what you do? Well, we work with someone like me, a franchise consultant, who has 20 years of experiences in relationship and you know, to that you're going to leverage and I'm going to teach you so that you can make a decision that you're confident about. So that's what I do, Mike?
Mike Swenson
Yeah. And I think as we were talking earlier, you know, what's, so what's so important is, like you said, finding a fit. And I think that's what people gloss over because they just look at, you know, XYZ franchise online and think, Okay, how much money can I make? And there's so much that goes into it, I think, you know, helping people to understand. Number one, I understand that entrepreneurship is cool, and people want to be their own boss and do their own thing. And yet at the same time, that means you literally are every job right out of the gate.
Mike Swenson
And so, you know, you may not know much about marketing, you may not know much about systems and back end procedures, billing, you know, accounts receivable, all that kind of stuff. You're everything in the janitor on top of that. And you can really fast forward and compress your timeline if you partner with a franchise and you find a good fit, because they have tested all of that. They've done all that some to different extents. And yet at the same time, they've got that set up. And so you can plug into it and not have to recreate the wheel right?
Kim Daly
Absolutely. You were it. You said it. You said it better than I say it like you, you could have my job. Yeah. So right when you the entrepreneurship versus franchising is buying down that learning curve, it's partnering yourself with people who've already figured it out. So they know who the customer is, they know how to attract the customer. They know the messaging that finds that customer, they know where to spend the money to find those people, they know how much money they know how long you're going to spend it until you're going to build a positively cash flowing business. It's, it's all of those assumptions, the questions that entrepreneurs have to ask, and then set out to answer. And it's in the process of all of that trial and error that 90% of entrepreneurs will fail before their fifth anniversary. So that statistic is not owned by the franchisors that I work with.
Kim Daly
The franchise stores that I work with have statistics, as reported in their franchise disclosure documents, sometimes as high as 98% successful over a 30 year history. Because you're buying into what's already been created and established, you get to show up and execute. And as Mike said, that just accelerates the time to the breakeven and the profitability, and the scale. So one of the things I want to say to your viewers, if you are in real estate, and you're looking for diversification, but you're not looking to buy yourself a job like as an entrepreneur, as Mike so nicely said, You're everything in that business and the janitor, in a franchise, you can come to the idea of owning a franchise where you can work on it as the CEO while your team works in it. So you can come in as a semi absentee investor, keeping a W two job or having other businesses for real estate that takes up your time.
Kim Daly
And so my absentee Mike in the beginning may mean 15 to 20 hours a week, and then scaling that back maybe to 10 to 15 hours a week. And they're even an extreme case, there are extreme cases or franchises where the owner puts in as little as five hours a week like think like a laundromat, right? Big capital investment open, but a very low time commitment. And when I'm working with candidates, when we talk about what is the right fit, I educate my people on what their money buys. And one thing I'll say is that money and time in a franchise are inversely related. So the lower the investment, and there's always exceptions to this rule. So you can don't go I know differently. Like there's always exceptions. But the rule, the general rule is, the lower the investment, the home based opportunities, low investment, because you're not taking on the overhead of a location or a lot of stuff. low investment of money, but big investment of owner time commitment like that real estate agent, right? You can't Yes, a real estate agent, maybe home base, but that doesn't mean they're working from home, it means you don't have to take on the location because your mobile while you're going and doing business where your customers are, versus a big laundromat, big capital expenditure to get it open, maybe some great tax advantages. But once it's open, very little time commitment, right, maybe five hours a week.
Kim Daly
So a business will never be truly absentee. A business always needs a leader in some amount. Depending on the leader that you are made, that amount may vary. And also the business that you invest in and and when you work with me, I would help you figure out if you're looking for that semi absentee option, those semi absentee options, I would help you figure out what options in that you know, that allow semi absentee match, you know, the goals that you're trying to achieve.
Mike Swenson
And in addition to you know, talking about buying systems, buying experience, buying time tested things. The other important thing is finding a fit. And you know, the fit can be anything from personality wise, schedule wise, like you said, maybe this is somebody that works there, their daily job and they want a franchise as an opportunity to build a second set of income or second stream of income while they're currently doing their job with the hopes that maybe down the road. They can take that over or maybe it's something where you're trying to build a legacy for your family where, you know, you were scrapping and Klein and doing what you could to be successful and you want to have something that you can pass on to your siblings or possibly your kids and So a franchise could be a good opportunity. And they come in all different shapes and sizes.
Mike Swenson
And so you really do want to find a fit with your skills and abilities, your passion, your time commitment, your finances and what you can commit financially. And so that's where it's, it's about finding a fit, where it's not a square peg in a round hole, right. I'm not just like you said, buying a job, you know, I could be a franchisee for a fast food chain, but then I'm also the manager all day every day. And I have to hire 16 year olds that you know, that run my life, well, you could do that. Or you could find something that's a better fit for your skills and abilities and your passions. And I think that's where so many people don't know how many franchises there really are out there, and how many options there are to choose from, and there probably is a fit for something that you'd like to do, and would be a match for your lifestyle.
Kim Daly
There are so many fun ways to make money in this world, like it is the best part of my job. You know, like I presented companies today to a former Wall Street executive. And you know, he said he worked you know, he worked for a bank, big bank made a lot of money where he moved a lot of money in his lifetime, right. And but he had leadership skills. And, you know, we were talking about moving and storage, we were talking about outdoor lighting, because he mentioned, you know, wanting to do something outside and not that he's going to be doing the work but that the work is done. We talked about fitness, because he and his wife are into fitness, like the three things basically seemingly have nothing in common, as I said to him when I presented but they have everything in common. And what they had in common were the characteristics that the three of us outlined in our consultation phone call where we talked about the type of investors they are like, you know, more conservative or more adventurous, we talked about the hours of operation they wanted to put in, and we talked about the work life balance at this stage of their life, where money maybe is not so much the goal, cashflow and tax advantages, or the goal more than mainly, it's about having meaningful activity.
Kim Daly
He's too young to fully retire, right. But on the flip side, so you're not going to take a huge risk at this time in your life either if you don't have to. So it's my job is to gather all of that data. And then to bring opportunities and to the point you are making. I mean, some of my very favorite franchises are companies that people are shocked to find out that's a franchise because they think it's food and retail, they say, oh, you know, my community doesn't have a UPS Store cam, should I open one of those and like only if you want to work, you know, retail job, right? Like not if you want to make serious money, not if you want scalability, not if you you know, don't want to be stuck in one location all day long. So it's it's to your point, it's about understanding someone's goals, and what they're using the business for. So the franchise business like rental property, it's just a vehicle that's going to drive an outcome. And so I'm infinitely more interested in the outcome somebody wants, personally, professionally and financially, and in what timeframe.
Kim Daly
So if you have a 10 year window to build a business, that's a different path than someone that says, I'd like to build something and be out within five years, right? You sort of need something that's gonna move a lot faster, it has a faster trajectory. So potentially a more pioneering concept, then, if you're looking to do this for 10 to 15 years, right. So everybody comes to me outlining again, what they're looking to achieve. And then I bring back all kinds of businesses like one a couple of my favorite ones that I'm working with right now, one paints lines in parking lots.
Kim Daly
t's a franchise like, so like the big asphalt roller guys, they don't want to come back and paint the line. That's like a job. They don't want to come back and do. But the lines are necessary for safety, but then also for aesthetic value, right? If you if you're the property manager of a condominium or a, an apartment complex, right, or you are a property manager of a strip center, and you just had it repaved. You need the lines, it just looks better. Right? Yeah, so this franchise comes in, it's a high ticket item. It's recurring revenue, it's b2b, it doesn't involve any big complicated equipment. Like the piece of equipment looks like that, you know, like the lawn Doctor guy who like pushes that little machine over your grass to like, fertilize your grass. That's what the machine looks like. So it's not complicated. It's not like big liability. small team of people, huge fat margins. I mean, like it but who would know that a business like that is a franchise, right? You come to a consultant and like, that's the kind of stuff Absolutely I can bring you the sexy things too, right?
Kim Daly
I have the fitness I have the, you know, big salons I have the things that people may ask me about the lat the lash lounge or, you know, but it's these sometimes it's the service based industries that don't require the fixed expense of a location which is kind of funny for you real estate people, but doesn't require, you know, the fixed costs and paying rent to a landlord. Sorry. But you know that that's what, when you look at what keeps a business owner up at night, it's those fixed costs, right. And especially when you have fixed costs, and you don't have a predictable revenue stream, so I'm not opposed to having rent in something wrapped in a membership, like fitness or like eyelash extensions, or we even have facials, wrapped in memberships, where you can, you know, you can have that predictable, scalable revenue. And it's repeatable. It's reoccurring.
Kim Daly
That's when you find owners that feel more in control, and okay, paying the rent that they have to pay, versus like a food based business where, you know, you can keep pushing out more sandwiches, but you still have those costs, you never can outrun the cost of the bread and the human to make, you know, whatever kind of food you're making those go up as your you know, your sales go up. So you see the margins in a business that has controlled fixed costs, but where you can keep growing the bottom line, you see the margins in those businesses start to grow exponentially. And that's where you see, you know, it's just, it's a safer investment for the average person, you make more money with less effort. And it just gives you a little more breathing room to make some mistakes, and still be okay.
Mike Swenson
We actually had a guest on previously just a couple episodes, his name is Andrew Cordle. And he was talking about so he started as a real estate agent in Atlanta. And between Atlanta and Chicago, he started I think he did like 1000 transactions and, and then he started to build and grow into other areas. And now he has a company that has essentially 23 Different companies inside of it. And he had mentioned, crumble cookies is one of the options. They own Polaris dealerships. And so you know, it's it's starting to think about different opportunities, where you're building those different streams. And like you said, you don't have to take the next 10 years of your life to build that stream. It could be get it up and running, find somebody that can can take over a lot of the day to day operation. And you can move on. And so now Andrews got 23 companies, and I think he said like 1000 employees, and he started as a as a realtor selling houses in Atlanta.
Mike Swenson
And it's building those different streams and finding those fits and finding great people to help you. But yeah, he would never be able to start 23 companies on his own from scratch, and do everything in anything. But it's finding those partnerships and finding those those right fits where yeah, you can plug some money in and you can build that stream of income and move on to the next thing and keep going and keep going.
Kim Daly
And you know what's really fun about that in today's franchising world, Mike, there are franchisors that have that very mentality for themselves, as well as for their franchisees. So first when we talk about scaling a business because the wealth in a business is always going to be created through scale, just like in real estate, right? It's not one door. It's multiple doors, right? Yep. So it. So first we talk about the vertical scale. So you open one unit of, you know, yoga, a yoga studio, and you're like, Okay, now I'm going to leverage that learning curve and open a second and maybe a third. And now with three locations, you can leverage one manager, so you don't have three managers, especially if they're in a contiguous area, which is a huge advantage, then you can lower your advertising costs, because now you can, like, you know, advertise with like a radio station, you don't care which club they walk into. They're all it's all your money, right? So you have some economies of scale to the expenses, as you scale up vertically, we'll call that right. And so now but you're like, Okay, I have enough investment in yoga, but I really like this demographic.
Kim Daly
Well, there are there is the largest fitness franchisor in the world actually has 11 different modalities underneath one parent organization. So we see many of their franchisees, they started with club Pilates, that's the biggest brand under that particular and then when there was no more locations of club around them, but they wanted to grow. When yoga six came in, or pure barre came in, they slid over. And now they took multiple units of that. So then you start growing horizontally. There are home services franchises that do that they start with a residential cleaning company, and then they go into gutters or power washing or you know, and so now the franchise owners again, can first grow vertically because that's going to be the path of least resistance to scaling to a multi million dollar business with your learning curve to two or three territories and then to go horizontally to their of the other brands underneath that parent franchisor.
Kim Daly
But the beautiful thing is when because franchising is all about people, it's about finding people that you like that have a vision that you buy into that you believe how I have the training and the toolbox, the marketing the technology. And so in this home services space, all of the modality, whether it's cleaning, or power washing or gutters, are, I think they have a window washing franchise, they all have the same marketing platform. And the same, like database management like CRM. So you learn it one time, think about the learning curve for that, right. And then you just get to grow in another business, but you're not like a fish out of water, like oh my god, like me learning this new Mac, we were talking about, I got a Mac, my first Mac computer from my PC. And I feel like a fish out of water today like turning this thing on. And even though it's a computer, and I've been on most of my life, it's totally different. Same thing, right.
Kim Daly
So you have the same people the same vision, the same leadership, the same toolbox, you already know, it works, because it worked over here. But now you get to grow in a different vertical. Right. So now you have a parent organization like your friend, Andrew, and you start really building wealth. And that's when you're thinking about generational wealth. You know, that's when you're building something that imagine if a private equity came along, because you had three or four different verticals under your parent organization. And within each vertical, you had multiple territories. I mean, that's, that's attractive to some small private equity companies, depending on what you're doing. And that's when you get, you know, nice big buyouts, big fat multiples. But even on that note, you don't have to build all of that to be attractive to sell. You know, I believe all Franchise Businesses are built to be sold. And he let's say that you built a, a senior care business, right? So you're delivering caregivers into the home, which feels really good, right? Taking care of our elderly grandma, grandpa, sometimes our mom and dad's depending on how old we are. Or even like children with, you know, adult children with disabilities, Senior Care, like, home health care is a really big market of much needed service.
Kim Daly
So let's say that you're you've built this thing over 767 years, and you're doing I'm making up numbers $3 million, top line revenue, and maybe you're taking home from 3 million, you know, somewhere like four or $500,000. And let's say that, you know, a private equity comes along and says they'll offer you a four or five multiple of your 500,000 to go away. Right? Like, I mean, why wouldn't you take that multiple and exit, right? But because senior care is an industry that's never going to be replaced by Amazon, right? It's always going to be essential. And really, in the time we're in in 2022, it's very essential, because a lot of people do not want their family trapped in a nursing home that then they can't go see him. Right due to restrictions. So we saw this huge boost and boom in home health care in sending even qualified caregivers, like nurses, and nurses who got laid off because they didn't want to get backs are looking for jobs in home health care, right? So because it's a private company. So it like everything's that itself.
Kim Daly
And anyway, I mean, that's the kind of industry that if you're looking for, I want to build something for a few years, and then be attractive to put an exit strategy on this, you know, you're not going to get those kind of multiples from food, upon exit, right. And in most leaving and retail to, you know, I don't want to make any earnings claims and say never, but it's services where the real opportunity exists, I think and if you even without the sales, the exit, just in terms of scaling wealth, it happens more in the service sector than it does I think in the others.
Mike Swenson
Yeah. And as you talk about, I like the idea of vertical integration. So you I mean, you think about people in the real estate industry. I mean, there's so many different opportunities. If you own real estate, there's property management, there's landscaping, there's even the even the striper of the parking lots. If you own commercial properties. You know, there's so many different cert cleaning services. You know, there's, there's so many different opportunities where you can stay close to something that you're already familiar with, and be able to add this on. And now you've got another stream of income, you're not reinventing your own wheel, your clients that your database that you've already built up of people might be something that you could leverage that database for whatever your next businesses and yeah, there's there's just a lot of great opportunities.
Mike Swenson
And so I think, if you're doing something in real estate right now, just kind of look at like, what, what would my database What would my clients or business to business clients like? What would be something that would be a nice add on service that you could offer that would be in a similar industry? And look at those different opportunities and yeah, you can be the person with 23 Different franchises are 23 different business opportunities because you've strategically lined up those dominoes where you find something that's a fit and you just keep going down that line.
Kim Daly
And you like Kim Daly helped you with all those. And, you know, I, when I work with real estate investors, like I'm working with a couple of them right now in California. And that's exactly what I identified in our consultation like, ooh, these people have extensive network. So one of them I showed a restoration company they do water mitigation, right water is a big problem when you own property, you know, can't be even if you don't live in a flood zone or you live in an area that's like not like Houston, you know, where you get potential hurricanes. It's water happens water damage happens everywhere, right? Toilets, overflow, laundry backup, right? You have problems. So anyway, this one particular candidate saw the huge opportunity and brought in a couple of his realtor partner, his real estate investing partners to buy, they're going I think they're going to end up purchasing all of San Diego County for this particular and the margins in Water Restoration are like insane water mitigation, business crazy, crazy, good business.
Kim Daly
It's a nice semi absentee investment. But But to your point, there are so many home services business where you wouldn't have to reinvent the wheel. We have property mate, we have property management franchises, but we have like Ace handyman, you know, think about as a property though how many handyman you use to in your own properties. Like what if you own that, you know that business and that profit center, in addition
Mike Swenson
stacking all your hands up,
Kim Daly
leveraging it, we have a business that comes in and Instagram readies a home, they do cosmetic upgrades there in and out of the home within three weeks. The franchisees need to know nothing about architecture or design. Because the parent franchisor actually is the designer. So that there are they are like a national design firm. And they're using franchising as a method to get their services across the US. Right. So franchisees basically just work with realtors, and who you want to sell homes faster. And for more money, you can use our service will come in will will like they paint cabinets, they replace countertops, they do the light cosmetic stuff, no heavy construction, and literally can cost the homeowner Zero out of pocket because they have a temporary construction loan.
Kim Daly
Like they like they thought of everything up to $55,000. So you can borrow the money to do the renovation that then you're going to pay off once your house sells because they guarantee that your house will sell like they have the formula you know that your house will sell for X number of dollars more because of these three weeks this these little renovations. So that's a franchise. Yeah. So again, and you're not you're gonna hire the contractors and manage them. But if you're already in that space, you may have people you already know who you already use, right? So painting companies, you name it gutter companies, landscaping companies, irrigation, landscaping companies, deck building companies, patio making company we have, I just helped a woman this weekend, Montana, say yes to a franchise that they repaired cracks in the foundation and driveway.
Kim Daly
That's all they do. Like that's a huge business. And again, it's another niche that the people that, you know, mainly work in the foundation and the summit, they don't want to come back and do that work. It's a nuisance work for them, right? It's too small of a job. But for the franchise owner, it's actually a high ticket item. It's a $2,500 average ticket, you're in and out within two days. The owner and a husband and wife team needs no other employees if they don't want to. Or it can be semi absent you can hire those two people. It's everything you need to start that business you can fit in a bucket they call it business in a bucket. and off you go no specialized training and it's always going to be needed. Right if you if it's hot and cold where you live. The concrete is cracking.
Mike Swenson
We have that Minnesota we always talk about New Hampshire. Yeah, drive, you know driving on the road. Like it's crazy how in the winter, how it just gets so bumpy. And the drive or the the road crews are out there in the spring and in the fall and they're always patching and yeah, I mean your your driveway is always up and down, up and down. I know right?
Kim Daly
Like who knew that that would be that's, you know, the dream of a lifetime business. It's not but the dream of the lifetime is the freedom to control right the opportunity to wake up and work with people you you hire and you enjoy, right make the kind of money that you want to make drive the level of business that you want to drive. That's the dream. The vehicle is just the franchise, right? It's just the widget is just the vehicle that gives you that outcome.
Mike Swenson
Yeah. Well and I think a lot of times, you know, for an entrepreneur it can. It might feel lonely At times, it might feel like you're always running up a hill, you know, trying to, or we always talk about running into the wind versus having the wind at your back, you know, like you might feel like you're running into the wind will a franchise is an opportunity to link arms of somebody on this side link arms, or somebody on this side, and you get to run together, and they get to help you get off the ground sooner. Because of all that experience and business building that's already happening. And like I said, you just get to plug into that. So
Kim Daly
And not just the franchisor, Mike, but the other franchisees, right, because, yeah, we were collectively in a franchise, we're all shareholders in the same brand, we're all moving in the same direction trying to create the same outcome, right? The more consistently we all perform, the better our brand, you know, become the stronger our brand becomes, right? Because when you think like, what is a brand and brand is a consistent consumer experience? We we as consumers get to know like and trust it that then then it's a brand. And so how does a franchisor build a really strong brand? They do it with a really tight FTD? Right? So people like oh, this franchisor is nickel and diming. Me and this franchisor is making me buy paper products here. And then like No, those are the brands that you want to be partnered with.
Kim Daly
Those are the brands that the franchisor knows that in order to build this thing consistently, we need to hold in the reins on everybody, we need to, we need to be able to source supply chain issues because we're all buying that paper product from the same place or we maybe we need to own that supply chain. So there is no supply chain issue, right? So it's not like franchisors are trying to squeeze every nickel and dime out of you. They're, they're operating in a certain way to help you to help lift the entire brand to propel it forward. That's a very common misconception about you know, franchisors and, and ultimately, it's because it's for the good of the brand, it's so that we can all work together. We're all going to go through training, and bring our own experiences and our personalities to a business.
Kim Daly
And so it takes a really strong franchisor to corral all of the personalities and all of the different ways that we interpret information and then drive that brand forward where we're executing consistently. But if you wanted to be a part of something that's, you know, like the next big orange theory, or the next big Chick fil A, why do we love those brands, because they're led by incredibly powerful leadership that has built a culture where franchisees just know, to follow the leader,
Mike Swenson
well into, like you said about the supply chain and all that. I mean, that's where fast food is a good example of that, right? Like, you want to know that, whether I'm in California, or Florida, if I like that McDonald's french fry, I want to make sure that that tastes the same. And it's that same system, right? It's easy to have that as an example. But it's that same system where I want to know that whatever I'm plugging into anywhere in the United States, it is going to be the same, it's going to be consistent, and that's the key of the franchise, it's not the mom and pop shop over here and the mom and pop shop over there do things very differently, you're looking for that consistency across the board. And that's why you might have to standardize the supply chains and some of those processes.
Kim Daly
Exactly. In some businesses, it's not as important as it isn't others. If you have a brick and mortar retail kind of a brand, it's definitely going to be more important than if you're doing like a home service where you know, people are going to your customers are going to end up doing business like realtors, right they people do business with you because they know like and trust you more than the brand behind you. But if you put a brand and a personality that they can get to know like and trust in a brand that has powerful leverage bike, you know, with national buying power or advantages of you know, marketing or technology or things that enable us to do business better. That's the Win win, right? But it still gives the the owner the chance to bring his or her personality to the business like my business is actually like a franchise. So you know, for I was trained on February 14 2002 to be a franchise consultant with a company called Fran choice that's actually right there in Eden Prairie, Minnesota.
Kim Daly
And, you know, 20 years later, I'm I'm still executing the same system. But through the 20 years, I've certainly made the business my own. I was told you got to find people who want to work with you. Nobody told me to host live events all over the country, right? That's what I did up until 2020. Then when I couldn't fly, I had to adapt or die. So I built Chem daily TV which I'll say Mike, that is single, definitely the greatest thing I've ever done. It's the most fun I've ever had professionally, building my YouTube channel.
Kim Daly
So please, you gotta check it out. Kim daily.tv te da li, but like, so the whole point is that, you know, I've been doing the same the same basic system for 20 years produced varying levels of success in the beginning figured out what I really needed to do to drive consistent high level performance and success became a history making consultant back in 2012. And I've spent the last 10 years you know, at a history making level and growing even that, so it's all the same, but it's what I've done with the system that's, you know, made the changes. And like I said, like they, they tell you, you've got to go find the people, but they leave it up to my personality, to figure out how to build my referred leads, just like a realtor, right, just like a realtor.
Mike Swenson
So what does that look like? So if I say, Gosh, Kim, this is pretty cool. You have this whole catalogue of opportunity for me. You know, do I reach out to you? And what is that conversation? And what does that exploration process look like?
Kim Daly
Yeah, that's such a good question. Thank you, Mike. So first of all, my services are free for my candidates. So I'm paid like a recruiter. So franchisors love what I do for them, because I really maximize their time, by the time a candidate gets to a franchisor. They number one, live in a market that's viable and open for that particular business. Right? How, what a bummer till go all the way through the process with a franchise and then they're like, Oh, we don't even have territory open, right? Like, that's never gonna happen here. You are financially qualified, like, we're not stretching you or you're putting the last dime of everything you have. Because one of the first things we're going to do together, I'm going to explain to you what your money buys, like black and white. I learned years ago that the number one reason people end up saying no to a franchise is money. Well, it's fear and money. But it's fear of losing money or fear of not making enough money.
Kim Daly
So it's always the money. So if I could address the elephant in the room right up front, that would help those people who realize I can't afford to do this right now, to take themselves out. But not just to be like, Hey, you can't afford it. It's to educate people. Because I can be like a farmer, I'll work the land that we can, we can make it rain later, right? So you can, you'll leave here knowing what you need to go do and when to call me back. I get people at this point calling me back, you know, hey, you remember me, Kim, three years ago, we talked about it, I'm finally ready. Or six months ago, I invested in crypto and now I'm ready, right? So like we have, I have those very real conversations about money. And so you're financially qualified, you live in a market that's open, and you have the key skill sets that match their top performing people. So that's why it's free.
Kim Daly
But that's also what I do for you is, I get to know you through a two step process, personally, professionally and financially. I want you to dream, I want you to tell me what your goals are, I want you to tell me like why you want to do this, like what's motivating you to even be here talking to me, because that's really important because the fear will kick in it. Absolutely. It's, it's it's irrational to think that it won't, because you're stepping outside of your comfort zone. So if we can outline when there's no fear, why we're here, logically, what outcome we're trying to create, then when the emotions start to run high toward the end, we can come back to the logical reasons why we started. And maybe we can bypass the emotional fear by connecting the dots. This is what I said I wanted and oh, look, this is what this business can afford me. So of course, I'm going to be nervous, because I'm stepping out of my comfort zone, I'm trying something I've never done.
Kim Daly
But by the time you've completed my research process, you will have asked all of the right questions you will have spoken to all of the right people, you will literally have done everything you can do to be as reasonably sure as you can be that unless you just don't get out of bed and do what you're committing to doing. There's no reason to assume that you're going to be in the small percentage of people that fail on that particular franchise, right? Compared to the very large percentage of people that are successful. And that's where I want my people to be competent in the due diligence that you've done, so that you can be confident in that final answer. And the whole process Mike takes me about one to two months. So it takes a couple of weeks to figure out now's not the right time or financially, just not the right time. It takes me about one to two months to get people comfortably to a confident Yes.
Mike Swenson
And to on the franchisor side, you know, then they get kind of a profile sheet of here's this person who's interested here's their financials, that sort of thing. And then you kind of decide you continue to go down the road or not right. So that's how it would work on the franchisor side,
Kim Daly
right when I when I present my candidates to the franchisor so as one of America's top franchise consultants, number one, you will work with their highest development person right like the senior consultants, not the people that are high hired to answer internet leads, right because no offense I mean, people have a bad day at work that you fill out a form. By the time that you get to that person they've already moved on. Like like, you know, probably like you get leads on the For real estate, right like on the internet, it's like you don't know what you're gonna get. But when, when it when a franchisor receives a weed from Kim Daly, they know 100% This person is qualified, motivated, interested and ready. So you get the best developer, it's the red carpet experience, experiment, experience. And then the franchisors, they don't expect you to know what to ask these good franchisors, the best of the best, they're going to guide you, they're going to take your hand and say, We want to teach you about our business. Here, let's do a company overview.
Kim Daly
The next time you get together, maybe you're going to go through the unit economics for they're going to break down what it costs to open the business, and then what their earnings claim shows. And then if that keeps you motivated, and you want to learn well, okay, how about we open our toolbox to you? So how are we going to help you make that money? Here's our marketing plan. Here's how we do search engine optimization for you. Here's our national call center that answers those calls, like, they're going to teach you all of that. And then they're going to show you like the real estate support or how they define a territory and maybe have you go drive some neighborhoods. So you can visualize like, what kind of customers you're going to be serving. And so they're guiding you. And from their guidance, then your questions naturally come up. And then we go out and we validate in the real world with all of the people who've already said yes to this. How's it going? Like? Are you happy? Do you feel well trained? Do you feel supported? Knowing what you know, now, would you do it again? And I coach people through all of those steps.
Kim Daly
So literally, again, you're you're asking every question that you'll you can you can think of and that I know that you should be asking, I'm even going to sprinkle in a little business coaching, things that I've picked up in my 20 years through hard knocks. And you know, the things that made me eight years an average performing consultant, and then the last 12 years, a history making consultant. The things that I do now that I wish I knew in the first eight years, right, because I was the same me franchise was the same process. But I produced two very different results. So it's kind of interesting, right? What did I do differently? When you like to know, so you can avoid eight years being average? I think you might. So I share those kinds of business coaching stories, and if people are into it with my candidates, because I'd rather you hit the ground running and be Rookie of the Year. I mean, that would be a better success story for you and for me.
Mike Swenson
Awesome. Awesome. Well, thank you so much for, for sharing all that. I mean, I think just to one, open people's eyes to these other opportunities are out there that I don't have to do it myself. I can plug in partner with people that have done, done the hard work. And like you said, you have a much higher success rate going with a franchise versus doing it yourself, because you said what 90 How many percent of businesses fail in the first five years?
Kim Daly
The SBA reports that 90% will fail before their fifth anniversary.
Mike Swenson
Right? So 90% fail or on the franchise side, what's the statistics on success?
Kim Daly
Well, every statistic, every franchise that we look at has to report their failure or success rate in their Franchise Disclosure Document. But the comment I made was that the majority of the companies I've been working with for 20 years have statistics, the exact opposite of that 90 95% success rate over a certain number of years. So yeah, we I don't want to make that.
Mike Swenson
Because right, because they have to report on it. You get to see that before you.
Kim Daly
Exactly. So it's all disclosed to you. Correct? Yeah.
Mike Swenson
So what would be the next step, then, Kim, I like everything that you're sharing. I like how you're gonna help me out. How can I reach out to you?
Kim Daly
Awesome. Well, if you want to check out some of my videos, absolutely on YouTube, Google Kim Daly or just type in KimDaly.TV that will take you right to my YouTube channel. But if you if you have specific questions for me, or you're just ready to say, hey, let's get started. How do I get a consultation? You can go to my website, which is thedalycoach.com/ Again, thedalycoach.com
Mike Swenson
Awesome. Well, thank you much so much for sharing just a wealth of information. It's encouraging to know that somebody could go through this process and get the hand holding and not feel like they're on an island trying to figure out like, oh, gosh, I just read entrepreneur Magazine's Top 100 franchises, I'm just gonna, let's see, pick number one, and I'm gonna call him up. You're gonna, you're gonna go through and find the right fit. Make sure that it meets their goals and objectives that they want, and really help them increase their chance of success in happiness through this process because you're doing something that you love. You're picking a franchise that's going to check those boxes. So, thank you so much for coming on immigration.
