Jakson Avoid the Predictable Steps to Being "Denied" täydellinen litterointi

homework ahead of time, where we'll stay on the call as long as you need to, and we very, very often, with our group, do follow-ups and follow-ups to our follow-ups to make sure we've got everything taken care of. 00:05:36.711 --> 00:05:46.060 Yeah, I've had an experience where people try to do it themselves and they have a half baked pie and then they want me to finish it and I'm like I can't help you very well at this point. 00:05:46.060 --> 00:05:48.110 That's a good analogy. 00:05:49.192 --> 00:05:51.257 It's kind of like if. 00:05:51.257 --> 00:05:53.624 I were to go into the kitchen of my wife. 00:05:53.624 --> 00:05:57.334 She's Italian, so she's running the show. 00:05:57.334 --> 00:06:05.238 I'm there to help put the pieces in the pie and if I listen to her guidance, boy, do we have a much better pie if I try to bake it myself. 00:06:07.002 --> 00:06:10.598 Yep, or somebody pulling it out of the oven said here, fix it. 00:06:10.598 --> 00:06:12.915 I'm like that's harder. 00:06:13.016 --> 00:06:13.437 Absolutely. 00:06:14.250 --> 00:06:28.994 So what are some of the biggest mistakes, or maybe even false beliefs that you see that tend to hold either people buying a franchise back or franchise companies, because sometimes they are making mistakes and having false beliefs. 00:06:30.396 --> 00:06:34.627 I think the I'm gonna kind of flip it to the other side on this for mistakes. 00:06:34.627 --> 00:06:49.218 I think a lot of folks are scared that they can't get funding, that they are not worthy, and so what we try to do is really have that conversation to you know what's the total project cost? 00:06:49.218 --> 00:06:53.122 Are you wanting to do one unit, two units, three units? 00:06:53.122 --> 00:06:57.345 And really there's usually a path there. 00:06:57.345 --> 00:06:59.540 There's usually an option for most people. 00:06:59.540 --> 00:07:04.665 So my advice would be is to have that conversation early. 00:07:05.175 --> 00:07:13.862 Don't be afraid to pick up the phone, don't be afraid to schedule a meeting or ask us to reach out to you, and we encourage our franchise, of course, to do that. 00:07:13.862 --> 00:07:22.723 We much rather you come to us when it's something in the gray area and we see if we can work the solution, because sometimes there's something you haven't thought about. 00:07:22.723 --> 00:07:49.535 There's a way we can move things around, to get creative on the deal, and so my advice would be always to get us involved sooner rather than later, and then we can go through what the options are, the highs and the lows of it and how it makes sense for you, but you know I hear that a lot from our franchise orders that people are nervous about the funding side of it because it's their first commercial transaction. 00:07:49.935 --> 00:07:57.369 It's their first business transaction and they don't know if it's something that they can accomplish. 00:07:57.369 --> 00:08:01.865 And that's what we're here to do is we're here to help ease that pain as much as we can. 00:08:05.060 --> 00:08:09.949 And how do you see top brands doing things differently than struggling brands? 00:08:09.949 --> 00:08:15.107 What are those kind of indicators or signs or things that you just stand out about the top brands? 00:08:15.815 --> 00:08:35.547 I'd say the top brands are probably the ones that engage us the most but at the same time, they are absolutely relentless in their communication, relentless in making sure that they have got their franchisee in a good position to keep moving forward. 00:08:35.547 --> 00:08:49.447 I think once you see a franchise that has a process down, they are very happy to provide information, to answer questions, to make sure that everybody goes into what their eyes open. 00:08:49.447 --> 00:09:12.147 I think that comes from experience I mean, we've all been there where we can always remember the really good ones and then the things that weren't really bad, and so learning from those situations to make sure you encompass all the heartaches and all the things that can help that person make a very educated decision. 00:09:12.514 --> 00:09:17.647 So give those to our franchisee or so we work with, because most of them do that. 00:09:18.796 --> 00:09:29.145 Yeah, I've seen that you have the people who are new and excited but figuring it out and the communication isn't really as consistent and helpful, so that you're not a team. 00:09:29.145 --> 00:09:31.721 It's almost like to treat it like a handoff. 00:09:31.721 --> 00:09:45.280 But then there's the people who are very process oriented, maybe too much process oriented, and in that instance too, they may or may not communicate with you, but it's that back and forth, like we're all on the team. 00:09:45.280 --> 00:09:56.327 Sometimes, as a broker, you see that you're pulling the client, the franchisee and the lender all together and making sure that everybody is on, knows everything. 00:09:57.458 --> 00:10:03.826 I think you nailed it Just making sure that flow of information is as smooth as possible based on the current situation. 00:10:05.317 --> 00:10:12.100 Well, what are some of the most valuable business advice or realizations that you would share with franchise companies? 00:10:13.605 --> 00:10:19.918 I would say that the transparency you know the ones we work with that are very do very well. 00:10:19.918 --> 00:10:22.630 Fdds are sharp. 00:10:22.630 --> 00:10:25.798 They're very reflective of what's going on in the company. 00:10:25.798 --> 00:10:34.236 And then also, you know revisiting that every year, what if we're going to throw the major thing out for both franchise owners and franchisees? 00:10:34.236 --> 00:10:37.375 It's make sure you're well capitalized. 00:10:37.585 --> 00:10:44.985 If you think you're going to hit break even by day 45, you know what we might plan for 90 days to hit that break even. 00:10:44.985 --> 00:10:48.455 So you have a little bit extra cash and a bank account.

00:10:48.455 --> 00:11:09.894 You know our goal is to working with the franchise orders and where we try to have a value add to is we want that person that when they're done working with us and working with the franchise or you know, through that closing process, all they're worried about is getting that business operational and pumping along there through that ramp up period. 00:11:09.894 --> 00:11:13.472 So capitalization is key. 00:11:13.472 --> 00:11:18.594 You know making sure the bank accounts are full and that they can cover you so you can be successful. 00:11:18.594 --> 00:11:21.292 And you know the good ones do a great job of that. 00:11:23.345 --> 00:11:31.205 What's one of the most important factors with the lenders when it comes to getting a loan closed for a franchise? 00:11:31.205 --> 00:11:36.253 I mean Item 19 play a part, like, what are the big things that play a part with getting a loan? 00:11:37.384 --> 00:11:40.774 You know I'm going to switch it to some of the qualitative here. 00:11:40.774 --> 00:11:43.932 I mean absolutely the FDD and breaking down. 00:11:43.932 --> 00:11:46.097 How do all the pieces come together? 00:11:46.097 --> 00:11:51.538 And what Lance is talking about is you know, can you pull all the pieces out? 00:11:51.538 --> 00:11:54.654 Because that lender is going to say, hey, where's all these funds going to? 00:11:54.654 --> 00:11:57.032 It comes out in what they call a source of the use. 00:11:57.032 --> 00:12:08.193 Who's sourcing it, Whether that's your equity contribution, your cash, maybe it's Rob's dollars that we're helping you with, and also that, that loan piece, and so that has to be very specific. 00:12:08.193 --> 00:12:13.375 But I would say that the biggest thing, let's tell your story. 00:12:13.375 --> 00:12:16.293 You know you decide to do franchising. 00:12:16.293 --> 00:12:18.792 You've got a unique background. 00:12:18.792 --> 00:12:20.952 Let's let's really sell your successes. 00:12:20.952 --> 00:12:34.514 Let's talk about how you are successful and those you know 20 years of being in this industry help to make you the perfect candidate for this, and so you know, just making sure that you're not. 00:12:35.174 --> 00:12:54.418 You're not just another person, and that's where we try to help folks and you know, differentiate themselves the franchises are going to work with you to make sure you understand all the details in their FDD and we'll help you check, check, check to make sure that's off the list for the banker. 00:12:54.418 --> 00:13:08.654 But we're really going to push you to sell your story because then this is the opportunity to put yourself on display and then highlight how you're a perfect fit for this industry, this franchise, and more worthy of the loan. 00:13:09.886 --> 00:13:37.995 And those are perfect things for someone who's looking to buy a franchise to think about, you know, for qualifying through the bank and for being awarded through the franchise, and that any other tips that you want to give the franchise companies as far as being, how do you say, presenting themselves not just to the franchisees but to the banks so that they are more likely to get a loan? 00:13:37.995 --> 00:13:43.998 I mean is, are there any factors that the banks are looking at when they're looking to fund one of these companies? 00:13:44.504 --> 00:13:52.126 Sure, a lot of it comes down to the performance of the franchise and being able to highlight and back up. 00:13:52.126 --> 00:14:03.494 You know what we're trying to accomplish in these individual projects by objective and empirical data, and so a lot of that's where you're going to get the questions and underwriting. 00:14:03.494 --> 00:14:10.413 If this specific situation is different than you know, what's in the median, what's in the average for performance? 00:14:10.413 --> 00:14:11.996 That's reflected on the FDD. 00:14:13.024 --> 00:14:29.748 And so really data is what's going to help solidify the request, to make it an objective decision More than subjective, I think a lot of the subjectivity comes down to the individual, like we discussed, and it's awesome. 00:14:29.748 --> 00:14:32.254 Tell your story and we are going to help you. 00:14:32.855 --> 00:14:55.176 You know promote yourself the best you can, but when it comes down to the nuts and bolts and you're working with an underwriter, what we try to do is make sure it's a very objective process, that you know these financial projections, this business plan that has these numbers and performance information is backed by good hard data in a proven method. 00:14:58.048 --> 00:15:05.222 And what are some trends or technologies that are new, that are out there, that you think that people should be aware of? 00:15:07.067 --> 00:15:08.913 Oh, we're going to go down the rabbit hole. 00:15:08.913 --> 00:15:16.658 It's the big discussion, even in our world, and as far as utilizing AI at the moment. 00:15:16.658 --> 00:15:30.176 Even as a company, we're starting to see where we can automate some of our processes or get help with some of the putting together things that normally used to be a manual process. 00:15:30.176 --> 00:15:37.618 My advice when you look at these business things is look at the resources. 00:15:37.618 --> 00:15:42.035 I had a mentor that hired me that was the president of the CEO of the bank. 00:15:42.884 --> 00:16:22.235 He said I learned real early that my time is very valuable and if we can find things to alleviate some of that stress and so we're actually spending time helping the business grow, whether that's utilizing the bookkeeping resources that we maybe can refer you to, or the franchise or has set up or inventory those types of things to where you're not necessarily having to spend hours or hours after the closing bell and to make your life so where you can concentrate on things will help the business grow and be successful. 00:16:23.225 --> 00:16:26.253 Absolutely, because then what you don't

want to do is be so busy. 00:16:26.253 --> 00:16:33.528 You don't have a lifestyle Utilizing these tools and technologies to do that Things like AI. 00:16:33.528 --> 00:16:40.131 The one thing people don't realize is it's useful, but what it does is it reports on what's been written. 00:16:40.131 --> 00:16:47.798 It's not, as I would say, fully creative. 00:16:47.798 --> 00:16:51.533 It's looking at what's out there and it's rewriting what's out there. 00:16:51.533 --> 00:17:01.494 It's more of a reporting function than I found, and all the programs are very different in how they prompt it and talk to it. 00:17:01.494 --> 00:17:11.028 It's very interesting and very useful as a handy tool, but it's like a fast car that needs a good driver. 00:17:11.911 --> 00:17:13.055 Just because you have it. 00:17:13.055 --> 00:17:16.512 What I was going to say is you can utilize it to its abilities. 00:17:16.512 --> 00:17:18.471 I think that's a great analogy. 00:17:18.471 --> 00:17:28.994 The comment we make is you've got a great top notch symphony here, but you're the conductor and it's only going to be as good as the conductor inputting it. 00:17:28.994 --> 00:17:37.496 It's not a replacement for some things, but if you have something that's repetitive, that maybe is time consuming, you can take that off your plate. 00:17:37.496 --> 00:17:38.487 It's a great resource. 00:17:42.545 --> 00:17:49.748 Next question is why do you think it's important to have a think tank like this, where we share information, come together, collaborate. 00:17:52.771 --> 00:18:05.736 I think it's always good to continue a conversation that's important, and the reason why I think this conversation is important is a lot of folks have a lot of misinformation out there. 00:18:06.410 --> 00:18:10.078 We talked about getting to us quickly. 00:18:10.078 --> 00:18:23.933 Getting to us quickly helps us understand what you're trying to do but, more importantly, put something together that they're going to be very, very happy with and understand all the different options. 00:18:23.933 --> 00:18:32.458 And the important reason why we get together on this lens is things change and the economy is always changing. 00:18:32.458 --> 00:18:37.599 The lending environment, just the overall how things work. 00:18:37.619 --> 00:18:44.000 It occasionally needs to be tweaked and so making sure that it's not quite as scary as a lot of people think. 00:18:44.869 --> 00:18:49.599 There's a lot of resources out there and it starts with a conversation like this. 00:18:49.599 --> 00:18:58.436 We're having a conversation here as part of the webinar podcast, but this is how we do business. 00:18:58.670 --> 00:19:11.355 This is how we talk to individuals and come on over, we're ready to talk about it and hopefully everyone's gotten a couple of different nuggets they can take with them and investigate. 00:19:11.355 --> 00:19:29.141 But at the same time, I think it's just important to keep uncovering these stones for people and see if they can be as successful as they can with doing their own research or getting to a funding partner to help get these things off the ground and make the dreams come true. 00:19:29.141 --> 00:19:29.761 That's the goal. 00:19:30.483 --> 00:19:30.743 Right. 00:19:30.743 --> 00:19:38.215 I've seen so many people that where they're nervous to talk to people but we don't realize is the experts on your team. 00:19:38.215 --> 00:19:56.137 It's your team and it's a shorter, easier, simpler, less mistakes and corrections to start with your team than to try to do a bunch of self-research and go off in a different direction, because who knows when that stuff was written and who knows how accurate it was? 00:19:56.137 --> 00:20:08.480 Times are changing and so, just like you, give people that maybe start with the wrong business entity just be easier if they just started with their team on day one and work with them. 00:20:08.480 --> 00:20:13.381 Well, Sam, I appreciate you. 00:20:13.381 --> 00:20:18.414 I want to thank you for joining us today and sharing your insights and anyone who's interested in Tenant. 00:20:18.414 --> 00:20:19.959 You can click the link here https://Franpro. 00:20:19.979 --> 00:20:20.480 vip/GoTenet. 00:20:20.480 --> 00:20:22.554 Well, thank you, Sam. 00:20:23.536 --> 00:20:24.196 Thank you, Lance. 00:20:24.196 --> 00:20:24.838 It was a pleasure. 00:20:24.838 --> 00:20:25.980 Thank you.