Episode 137: Why 90% of Franchise Owners Fail | Building a 7-Figure Mobile Fitness Business

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Joining us in the huddle today is Josh York, founder of GYMGUYZ Welcome to the show, Josh.
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Mike, thanks for having me. Appreciate it, pal. Yes.
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Yeah, it's so great to see you again.
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So we saw each other in Orlando at France Serves National Convention a couple weeks ago.
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And it's great to see you again.
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you've been operating your business, Gym Guys, for eighteen years. So rare in business to have that kind of longevity.
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Take us back to 2008. What was the moment you decided to start Gym Guys out of your parents' dining room?
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Yeah, great question. So I was a personal trainer.
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I loved helping people and I was always in the gym and I used to watch these personal trainers with their clients and they were always having a great time. And I was like, this is great. I'm gonna become a personal trainer.
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And that's exactly what I did.
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And you start to learn very quickly that being a personal trainer is not scalable.
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There's only so many hours Mm-hmm.
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in the day. But I always figure things out.
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And one day one of my clients came in late and just said, Josh, I really wish you could just come to my house.
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I just don't have any equipment.
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I wish you could just bring it to me.
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And I like, wow, this is like such a simple idea.
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No one's ever professionalized it.
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No one's ever franchised it. No one's even ever created this category before.
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I'm gonna do it. And that's how it started.
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Yeah, so that's probably answered my question already, but like, did you have an aha moment that convinced you that this thing's actually a franchise system, not just a business?
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So it's funny, I a lot of people don't know this, but no, I did not, I did not like I knew I could franchise it, but initially what got me really into franchising, at a young age, I was working for one of the top Dunkin' Donut franchisees at the age of 13. This is probably illegal.
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Okay.
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I don't even think it was legal.
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I used to ride my bike.
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I don't even know how my parents would let me do this.
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Three in the morning. My shift would start at 3 30.
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It took me, took me about 20 minutes to get there on my bike.
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And this guy, keep in mind, I was 13 years old.
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Yeah.
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He he let me deposit money in the bank.
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He let he taught me so much and I always loved franchising.
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So that's why I always thought about franchising.
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And I knew I could franchise it.
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I knew I just had to really perfect it because no one's ever been able to do it before. So for me it was seven hundred times harder than probably, you know, not obviously business is hard in general, but for me it was very hard because there was a lot of moving parts and things I had to figure out. I also had to create demand too.
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Yeah. So you know, there's a big difference between operating your own gym guys business and then turning it into a franchise.
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What give me an example of a mistake you made early on in franchising that you would warn others about?
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my God. How much how much yeah, Prob probably too many to count, huh?
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how much time you have?
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I'd say the top is making sure you're bringing in the right people.
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And it's very hard to do because you gotta really figure out who is the right person. Right. So for a couple of years, there was a lot of learning involved'cause I was not bringing in some of the right people. And you gotta make sure you're bringing in action takers, people who are gonna follow the system and people who are gonna get out there and drive their business.
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So that was one of the biggest mistakes I made initially.
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And ~ you know, I was thinking that, you know, I could I could just train anybody and they're gonna listen and follow and it does not work like that.
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Yeah. So tell me like for listeners that aren't familiar with the gym guys model, tell us a little bit about what it is and what makes it different than a typical gym franchise.
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Absolutely. Well, we are not a gym, as we like to say. We're the rebellion against it.
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Gyms have high expenses, low margins.
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We have high margins, low expenses.
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So we literally bring the workout to you.
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There's no brick and mortar. We come in our vans fully loaded with enough to provide you a fantastic workout, 365 days a year, backed by our three Cs, convenient, customized, and creative workouts.
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And we service our clients anywhere from their home, office, pool, park, place of worship, hospital, senior home, assisted living facilities, daycares. We run PE programs for schools.
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We're in small businesses, large businesses.
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We even have a government funded program working with a lot of autistic children and people with disabilities. So we change lives, we help people, and as I always like to say, it's great to make a living. It's much better to make a difference.
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Yeah, and it's so cool because as the world changes and the economies change and just trends change, like you guys have something for everyone.
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Not only the the content that you're providing through your personal trainers to the community, but like the places where you deliver the service.
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so like, you know, COVID happens, you know, that's gonna kill a regular gym with your business.
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Sure wasn't great, but like you have more flexibility in the model than than other people have. so Josh, tell me a little bit about quality control.
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I think when people think franchising, they freak out, like, how am I gonna make sure that this is the same, you know, because you're in multiple countries, you have hundreds of locations.
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How do you deliver this to individual homes and keep that consistency?
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So look, number one, the most important thing is you need a vision, and that vision has to be shared with everybody.
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Then you need core values, and the values have to be aligned with every single person in the company, and that's how you create the company culture, right? And if you don't have a great company culture, it's gonna be very hard to maintain and keep that consistency.
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Once you have that, you need to build tight operational manuals.
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You need to have procedures and you need to have a lot of, you know, opportunity to really have checks and balances so you can inspect you expect. I think where a lot of business owners go wrong is they just okay, you know what, I'm going to bring this person on.
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It's going to be incredible and it's all going to work out.
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No, you gotta be on top of everything and make sure things are running smoothly.
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But if you put the right systems in place, because everything's about systems, that's how you scale. If you put the right systems in place, the systems do the work. You just gotta make sure you do a great job with training those systems and making sure people follow those systems.
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So, you know, in your opinion, what separates brands like Gym Guys from the ones that flame out?
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Is it the culture, is it the systems, or is there more to it?
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I think the majority of people fail because they have weak minds, right? Mindset is the number one most important thing in business.
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I would pretty much say it's about ninety percent of business.
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Business is easy to say, it's not easy to do.
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most people are weak. They tap out very quickly.
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As soon as problems happen or pain comes in, they're out. They tap out. You're in the You're you're you're you're in it when that's happening.
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And the whole point is like it's supposed to be hard.
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If it was easy, everyone would do it.
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And as I love to say, diamonds are made from pressure.
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Pressure is needed to be successful.
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So I think that's the number one mistake people make people make is that as soon as it gets hard, they're like, That's it, I'm out. Usually when things are going in in a very bad direction, it means that something really good is right around the corner.
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You just gotta doggy paddle just a little bit longer.
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Unquip.
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And and that's it. That's it. You know, when you actually walk into our world headquarters, the first thing you see on our wall, Italy, huge, shiny, metallic, beautiful letters.
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We don't quit. That's the first thing you see when you walk into our building.
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You don't ever quit, no matter what.
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If you don't quit, you're guaranteed success, right? As long as there's demand for the service, you've been able to prove it out and it works, you can't lose.
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Yeah. So let's talk about that.
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You have, you know, someone that's listening is like, hey, this sounds amazing. Like I love helping people.
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I like the lower investment. I like the higher margins.
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When someone joins your franchise, what kind of support do the owners get from you and the team once they become and they sign on the dotted line?
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Yeah, I think we give a little bit too much support to be honest with you.
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Some people tell me Josh is a little crazy, but you what? This is the way I look Yeah.
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at it. You know, I want people to be in business for themselves, not by themselves. You know, we can't hold your hand for every single thing, but it's pretty incredible what we do.
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We help with all the hiring. We vet them, we screen trainers, we pass them off to you.
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None of our owners are personal trainers.
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They're all, you know, higher level ~ type management individuals, people who you know, wanna grow. ~ I would be open to bringing in a personal trainer into the system, but they gotta be really driven and really motivated.
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So that's really what it comes down to.
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But at the end of the day, really, like you gotta understand Support is is great, but if you don't follow the system, you're not gonna be successful.
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And I tell people that because it's very important.
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Not every franchise organization provides the type of support we provide.
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We help with marketing. We we take care of all that, especially in the first six months for you, which is incredible. We have all the content literally in our learning center, on our store. Everything's there for you.
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Most businesses that you start up, especially franchises, they'll let you know how to do it, but you gotta take care of all of it on your own.
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Like just, you know, some of our marketing campaigns we run, it's done. All you gotta do is pay.
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So it it saves a lot of time and allows you to work on more important things like revenue, right, for your business.
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Very cool. So Josh, give us give us an example.
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I'm sure you have plenty, but you know, all walks of life, join your franchise system.
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Give me a success story that captures what Gym Guys is really about.
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I'll tell you, you know, when someone comes to me years after they've been in business and they're very successful and tell me, you know, my kids are in private school.
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I take a couple of vacations a year now.
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I have an unbelievable manager that I changed his life.
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He makes a lot of money. you know, I don't have to work as hard anymore because I paid my dues.
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That's just I'm getting goosebumps.
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I'm getting goosebumps even telling you that.
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Like, I love hearing that, right?
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And then on the flip side, what's great about our business is you hear that from the clients too. Like, you what it's like getting a call from a mother?
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Of a disabled child that you changed her life and she's crying on the phone to you that you changed her family forever.
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Like, like that makes me so happy.
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You know, I we had people lose hundreds of pounds.
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I can't even tell you the things we've been able to do.
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I I had one woman a long time ago call me.
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She was suffering with very, very bad spinal stenosis, issues with her back. I mean like major.
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Like she couldn't even stand up for a longer period than five minutes.
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We worked very we worked a lot on her core and really strengthening her core.
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She didn't want to have an operation.
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She never ended up needing that operation.
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And she now lives an unbelievable, pain free life because of us. That's what's very incredible.
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Amazing. Yeah. So it's kind of cool that you have stories about changing lives of your end client and as well as the franchise owners that kind of put their faith in gym guys and you and kind of get involved with the system.
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So let's talk a little bit about that.
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Like I know you said that good franchise owners are not personal trainers.
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what makes a good, you know, gym guys franchise owner?
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Who do you look for?
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So, first of all, the number one thing I like to look for is happy people.
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Skill will always be able to be taught, attitude can't. And you gotta be happy, just like you wanna hire happy people.
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You don't wanna hire miserable, unhappy people, because then you're gonna have unhappy clients.
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I'm looking for people who are willing to take action, right? The action takers are the moneymakers.
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Look, sales background's always a plus, marketing, management. But at the end of the day, you gotta be okay being uncomfortable.
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You know, like I always, you know, give an example.
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A long time I'm actually very introverted.
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People don't believe that, but I really am.
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When I'm when I'm working, yeah.
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I don't believe you, Josh.
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Well, I I listen, I have two friends and that's it.
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I keep my circle very tight. ~ Yeah.
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I like to be with my kids and my wife.
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That's it. I hang out with my family.
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That's what like to do. I don't go out, I don't party. I've actually never been drunk before, never smoking a cigarette, never taking a drug ever in my life.
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So Great.
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I'm very introverted. But I, you know, someone asked me this question a long time ago.
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Very successful, ran a multi billion dollar company.
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Said Josh, if I played I don't know, name me s an artist that you know.
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You know Madonna? I was like, yeah.
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He's like, if I played you a song right now of hers and I gave you the lyrics, would you be able to sing it as loud as you can in the middle of the mall?
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Or that would make you feel too uncomfortable.
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I was like, I can never do that.
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No way, I'm not doing that. But you better learn to do that.
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And I'll never for the rest of my life, I'll never forget that. And right now, I'll put on a chicken suit, leave off the top.
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Ha ha ha.
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You see my face and I'll walk around literally this intersection, which one of the busiest intersections in Long Island, and I'll clock like a chicken.
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I can care less. The point is, is that you have to be okay being uncomfortable because the more you you do uncomfortable things, the more comfortable you become with them.
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And that's how you develop those skills.
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And skill those skills are the skills that are needed to be successful.
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So you might not like to do everything.
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That's okay. If you're not great at everything, you can hire for that.
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But certain things you have to do.
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And as a leader, you gotta be willing to just do it.
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Like I remember the first time I had to have a conversation with a trainer and pretty much reprimand them on something.
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And I was so uncomfortable, I literally almost threw up before the conversation because I had such anxiety.
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Well, I've been doing this now a very long time, so I don't feel like that anymore.
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First time I went on TV, same thing.
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I almost literally was throwing up in the bathroom.
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You have to be able to good good owners, they do that.
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But you know what they also do?
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They show up, they're present, they're engaged. That's very important.
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That's really good advice for franchise owner, business owner, anything in life.
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Like if you want to grow, you can't do the same things that you're comfortable with or you're going to be in the same place.
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If you go to that uncomfortable place and you do it and you say, Hey, I survived that. I learned from it.
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I got better because of it. It's going to make you a better person, a better business owner, a better franchisee.
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So that makes sense. So Josh, I I know you're a visionary.
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Tell us what Gym Guys looks like now and what you think it's going to look like in five years.
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Well, I don't think what it's gonna look like.
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I know what it's gonna look like, right? ~ I will tell you, you know, we're gonna be the largest fitness company in the world.
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We're gonna disrupt the entire fitness industry.
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And ~ we're just getting started, I'll tell you that right now. But it's pretty incredible.
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We're in six countries, we're in twenty nine states, we operate in thousands of cities, and people always back Did you know this was gonna happen?
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Yes, I knew it was gonna happen.
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From day one I knew it was gonna happen.
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And it's only gonna continue to get better.
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And you know, when you talk about the world we live in, everything's about convenience, that's not going anywhere, and people need accountability and that's what we provide.
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That's awesome. So let's talk about item seven.
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If someone's looking to get in the business, how much does it cost to become a franchise owner with gym guys?
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Yep, you're looking at about a hundred grand to about a hundred and ninety.
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And the difference there is between one territory and three territories.
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Ninety-five percent of our owners do multiple units because they really want opportunity to really scale and grow.
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So they'll do multiple territories, but that's all in. You know, it's really not a big investment.
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And you can return, you can make that return on your investment very fast if you follow the system, if you take action, and if you get out there.
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Yeah, definitely a low cost franchise.
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I love the scalability of it. I love that it's a low barrier to entry if you're the right person. ~ how about item nineteen?
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Do you provide any earnings guidance in the F D D?
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We sure do. And we got many people doing seven figures a year, working with very high margins.
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am I saying you're gonna do that?
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Absolutely not. Can you? Absolutely.
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Who is that up to? That's up to you.
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And it's up to the four things I like to always say.
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Number one, are you an action taker, which we already talked about?
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Number two, are you disciplined?
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It's about doing it when you want to do it and doing it when you don't want to do it. And on the days you don't want to do it, you better smile, act like you love it, and get it done. Number three, positivity. I tell everybody.
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When you're in business, you're becoming a leader.
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Good leaders create other good leaders.
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Leadership is caught, it's not taught.
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So if my if this big tree in the front of my building happened to fall down, you know what I'd say? I'd like that tree anyway.
00:14:21.613 --> 00:14:22.820
Let's get rid of it. It's Yeah.
00:14:23.734 --> 00:14:25.255
all it's all about positivity.
00:14:25.255 --> 00:14:27.928
And the last one is following the system.
00:14:27.928 --> 00:14:31.261
You gotta follow if you do all that, forget it. You're gonna be incredible.
00:14:31.412 --> 00:14:34.485
Yeah, amazing advice, Josh. ~ this has been great.
00:14:34.485 --> 00:14:36.914
Anything else you want to add to the mix before we wrap up today?
00:14:37.065 --> 00:14:48.150
No, I think, listen, I I think you know, just take all the nuggets I just gave out, put those in your pocket, make sure you zip that pocket, get a pocket with a zipper, and don't let them come out because that's what's going to really help you get to the next level.
00:14:48.150 --> 00:14:56.143
And just remember, when you are having challenging times, always say these words this too shall pass, and it's not fatal. People people like Great, great advice.
00:14:56.436 --> 00:15:00.568
overreact right away. And and the key is not overreacting because it's not fatal.
00:15:00.568 --> 00:15:02.879
You're still living, you're alive, it will pass.
00:15:02.318 --> 00:15:03.318
Yeah.
00:15:02.769 --> 00:15:08.495
Take a measured approach to challenges that come your way because in business they come your way every single day.
00:15:08.495 --> 00:15:17.485
So j if anyone listening would like to connect with Josh and his team to learn more about becoming a franchise owner with gym guys, contact me at franchiseqb dot com and I'll get you connected.
00:15:17.485 --> 00:15:20.457
Thank you, Josh, so much for taking the time to get in the huddle with us today.
00:15:20.607 --> 00:15:22.936
Really appreciate it. Thank you so much, Mike.
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You got it.