Podcast Summary:

Unemployable with Jeff Dudan
Episode #218: How to Know If Your Business Is Ready to Franchise – iFranchise Group’s Mark Siebert Explains
Date: October 15, 2025
Guest: Mark Siebert, Founder & CEO, iFranchise Group
Host: Jeff Dudan [Homefront Brands]

Episode Overview

This episode of Unemployable dives deep into the critical decision of franchising your business, featuring one of the industry’s most respected experts, Mark Siebert of iFranchise Group. With a career spanning decades, Mark discusses franchise readiness, the essential disciplines of successful franchisors, the impact of private equity, and international expansion. The conversation is packed with real-world advice, operational wisdom, and memorable reflections on the business of franchising.

Key Discussion Points & Insights

1. Is Franchising the Ultimate Small Business Wealth Model?

• [01:42] Jeff opens by asking if franchising is the “greatest wealth creation business model ever invented.”
• Mark’s Perspective:
  “For the vast majority of small businesses… franchising is the greatest way of expanding. You can grow a business using other people’s money, other people’s dedicated time and efforts, and you can grow a lot faster.” ([01:52])

2. The Franchise Readiness Checklist

• [02:57] Mark outlines the three critical categories for franchise readiness:
  1. Franchise Sales Capability:
     • Management team & concept credibility
     • Social proof and strong value proposition
     • Clear target franchisee market
  2. Clonability/Duplicability:
     • Documented systems & manuals
     • Teachable concept for various markets
  3. Unit Economics & Profitability:
     • Strong ROI for franchisee and franchisor
     • Realistic investment vs. expected returns
       Quote:
       “The acid test of franchising is really whether or not it is able to provide a good return to the franchisee, while simultaneously providing a return to the franchisor.” ([04:38])

3. Franchise Growth: The Founder’s Story

• [05:02] Mark recounts how he entered franchising in 1984 and his drive to foster long-term client relationships.
• Team Quality as Differentiator:
  Mark discusses the value of having seasoned, C-suite consultants to support emerging and mature franchises.
  “I wanted to hire the best in the industry.” ([06:50])

4. What Makes a ‘Great’ Franchise Brand?

• [09:41]
  “The thing that characterizes the great franchise owners is typically really great management. It’s not necessarily that they've got the best concept... But good management will avoid the first two problems [capital and adapting to market changes]. There’s no cure for bad management.” — Mark Siebert

5. The Discipline of Smart Franchise Growth

• Discipline > Speed:
  Franchisors must avoid the temptation of rapid, unfocused expansion.
  • Best practice: Start local; ensure franchisee success before scaling.
  • Case studies: McDonald's, Culver's, and Chick-fil-A are cited for disciplined, one-location-first models ([14:15])
• Cautionary Tale:
  “You see franchisors where… they’ve got locations scattered all across the US and that’s really hard to service. It usually is a sign of a… ‘I’ll sell to anybody who wants to buy one’ kind of mentality.” ([15:24])

6. The Real Cost (and Challenge) of Franchising

• [17:47] Jeff and Mark dissect the misunderstood financial demands of rolling out a franchise brand:
  • Transition strategies: Divesting company stores to fund franchise launch
  • Franchise startup often far exceeds the $50–125k “consultant fee” figure touted online.
  • Resources must be deployed ahead of revenue; speed increases costs.
    Quote:
    “Franchising is a low cost means of expansion, but it’s not a no cost means of expansion.” ([22:06])

7. Franchise Lead Generation & Closing

• [25:02]
  • Importance of immediate CRM response to franchise leads for best results: “If you talk to somebody in the first five minutes, you’re nine times more likely to close them.” — Jeff Dudan
  • Mark: “If you’re not talking to somebody within the first 30 minutes, you’re behind the game these days.” ([26:34])

8. Private Equity’s Impact on Franchising

• [29:09]
  • Influx of private equity has changed the dynamics: higher broker commissions, aggressive growth targets, and forced acceleration—raising the bar and the cost for newcomers.
  • Broker Networks: Some franchise deals pay broker commissions higher than the upfront fee!
• Valuations:
  “One of [my] clients got 20x… another one just got 14.5x. Getting 14x, 15x earnings is not at all unusual in today’s private equity world.” — Mark Siebert ([31:36])

9. The Role of the Founder & Evolution to Corporate Brands

• [34:57] Early franchise buyers are motivated by founder story, credibility, and vision; private equity usually comes in after scale is achieved.
  “I think that people do buy into that founder and that founder’s vision more than an early stage company that's run by private equity.” ([36:19])

10. International Franchising: Opportunities and Pitfalls

• [39:06]–[46:40]
  • The U.S. remains the world’s largest and most competitive franchising market.
  • Successes: Korean brands (Paris Baguette, Bonchon), Guatemalan brands, etc.
  • Outbound caution: Don’t jump abroad opportunistically; match size, resources, and select the right partners.
  • Common Failures:
    • Wrong partner selection (95%+ chance the “opportunistic” approach leads to issues)
    • Misreading the market (e.g., burger chains launching in vegetarian-majority countries)

11. Best International Markets and Challenges

• [46:19]–[51:21]
  • Canada: Most logical step for U.S. franchises—similar laws and culture, but weaker currency.
  • Middle East: Booming but challenging due to cultural, legal, and practical differences (e.g., alcohol, dietary restrictions, Sharia law).
  • Australia & New Zealand: Similar but much smaller markets.

12. The Franchise Model: Simplicity, Balance, and Best Practice

• [53:12] Jeff and Mark discuss the importance of sustainable, well-balanced franchise financial models:
  • “You have to make sure there’s economics in the store for people and families to make money.”
  • Fee structures must reflect what is done centrally vs. locally; don’t “squeeze” franchisee or franchisor economics excessively.
  • Getting It Right:
    “If you’re off by 1% on your royalty… [over time] that's now a $5 million mistake and if you decide to sell… a 15x multiple on that $500,000 and there’s another $10 million there.” ([57:27])

Notable Quotes & Memorable Moments

• On Franchising’s Value:
  “For small businesses… franchising is the greatest way of expanding.” — Mark Siebert ([01:52])

• On Management over Concept:
  “Good management will find the capital, good management will adapt the concept. But there’s no cure for bad management.” — Mark Siebert ([09:41])

• On the Discipline of Growth:
  “If you have successful franchisees, they'll buy a second location, they'll buy a third location... If you have unsuccessful franchisees, you will fail as a franchisor.” — Mark Siebert ([16:46])

• Private Equity & Valuations:
  “Getting 14x, 15x earnings is not at all unusual in today’s private equity world.” — Mark Siebert ([31:36])

• Advice to Young Entrepreneurs:
  “Start a business when you’re young. When you are older, it becomes a lot more difficult… Starting a business, I think, is the most rewarding thing that you can do… Get into business for yourself.” — Mark Siebert ([63:40])

Timestamps for Major Segments

| Timestamp | Segment/Topic | |-----------|--------------| | 01:42 | Is franchising the ultimate wealth creation model? | | 02:57 | Franchise readiness—Mark’s three-point checklist | | 06:05 | Mark's journey into franchising, iFranchise’s founding | | 09:41 | What makes a great, fast-growing franchise brand? | | 14:15 | The importance of disciplined, sequenced growth | | 17:47 | The real cost and challenges of launching a franchise system | | 25:02 | Lead acquisition, CRM, and the cost of marketing | | 29:09 | Private equity’s influence and the rise of platform brands | | 34:57 | Founder- vs. corporate-led franchise launches | | 39:06 | International franchising flows, opportunities, and risks | | 46:19 | Best and most challenging international markets | | 53:12 | The logic and balance of franchise financial models | | 63:40 | Mark’s one-sentence advice for aspiring business builders |

Final Thoughts & Takeaways

• Franchising works best when prioritizing operational discipline, local franchisee success, and measured expansion.
• Rapid growth amplifies startup costs and operational demands—plan accordingly.
• Private equity has brought vast new capital, higher multiples, but also increased competition and marketing costs.
• International expansion requires strategic planning, strong partners, and market-specific strategies—avoid opportunistic deals.
• The fundamentals—the right people, strong unit economics, a replicable system, and transparent collaboration—remain unchanged regardless of market trends or technological shifts.
• Whether founder-led or corporately launched, early franchise growth depends on credibility, leadership, and a laser-focus on franchisee outcomes.

Where to Contact Mark Siebert & Learn More

• Website: ifranchisegroup.com
• Book: Franchise Your Business: The Guide to Employing the Greatest Growth Strategy Ever (Second Edition)

Memorable Closing Advice

“Get into business while you’re young. You’re going to find not only is it going to be more fulfilling, but not a single day is going to seem like work to you… you’re banking on yourself.”
— Mark Siebert ([63:40])