← Unemployable with Jeff Dudan
Unemployable with Jeff Dudan
Why People Leave Corporate for Franchising | Franchise Fridays with Tom Ryan Jr. and Jeff Dudan #219
00:26:56
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- [00:00]
A
Hey, everybody. Jeff Dutton here. Welcome back to the Unemployable podcast with Jeff Duden. And today we've got the incredible Tommy Ryan. Welcome, Tom.
- [00:09]
B
Jeff, thanks for having me, my man.
- [00:14]
A
Yeah, excited to have you here today. Tell us a little bit about your background.
- [00:18]
B
Yeah, so I am a career franchise guy. A story somewhat similar to your son Zach. I got started in this business when I was in college. My dad was a kind of typical franchise candidate that we come across all the time. 55 years old, displaced from corporate America, unceremoniously sent into retirement, standing around saying, what do I do next? He bought a master franchise and I then decided to get into business with him. I was a bit directionless. I didn't know what I wanted to be. I wasn't pre med, wasn't pre law, figured I'd get into business or real estate and went to work in the franchise industry.
- [00:56]
A
Outstanding. So what do you do today at Homefront Brands?
- [01:01]
B
So I am the chief development officer here at Homefront Brands. I'm responsible for our franchise development team and helping the company grow with all of the brands within our platform, both externally bringing in new franchisees, but also internally helping them grow, expand, or even ultimately look for their exit strategy and sell their business. Great.
- [01:21]
A
What other brands have you been with?
- [01:23]
B
The list is long. The older I get, I think I've represented somewhere around 12 different brands. I started, as I mentioned, with my father's business, a company called Cartridge World, Australian brand that came to the US in the early 2000s. We had the master franchise business in the Mountain West. I then moved on to the in home senior care industry because it was such a logical transition. A company called Homewatch Caregivers. That then led to an opportunity for me with a startup company based in my home state of Minnesota. A company called College Nannies, Sitters and Tutors. Now goes by the brand Jovi, but they're in home childcare, part time, Nanny Solutions, Backup kid care and retail tutoring business.
- [02:08]
A
Interesting.
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B
And that then led to an opportunity for me with Regis Corp. One of the largest franchisors in America. I think There are about 8,000 hair salon strong brands that many people know like Supercuts, Roosters, Cost Cutters, Smart Style, which is in Walmart. I spent a lot of time in the hair salon industry and then most recently before coming here, I was with a franchise sales organization called Franchise Fast Lane. And I represented a variety of brands. Bloomin Blinds, All Dry Degree Wellness, Hallmark Home Care. The list goes on and on. Yeah.
- [02:43]
A
What keeps you in the Industry.
- [02:45]
B
You know, it's funny, a really good friend of mine that's a franchise consultant has a quote that he likes to tell, which is, franchising is like Hotel California. You can check out anytime you'd like, but you can never leave, really. And I have found that to be very true. I did during COVID kind of test the waters in the real estate space with an uncle of mine, and I learned pretty quickly that I miss franchising big time. Got it. It's just. It's what I know. I love the, you know, the ability to work with people and help them realize their dreams. And I don't expect that I'm going anywhere anytime soon.
- [03:21]
A
What's your favorite thing about working with franchise candidates?
- [03:25]
B
You know, I think it is. It's kind of that self realization that there's a different way to go about your career.
- [03:32]
A
Okay.
- [03:32]
B
And to, you know, take things into your own hands and bet on yourself and take a chance and work towards kind of financial freedom, not just for you, but frankly, for generations behind you for your kids. That's really been a lot of fun for me to watch people build something that can be incredibly meaningful for. For them and their families.
- [03:52]
A
When you're talking to these candidates, what are some of the reasons that you hear as to why they're getting into franchising today?
- [03:58]
B
Yeah, you know, I think the today part's interesting as well. I guess I'll start there without getting into some big macroeconomic spiel. I think it's an interesting.
- [04:10]
A
Are you qualified to.
- [04:11]
B
I absolutely. Edit that out, please. No, you know, it's. It's an interesting time. I think that, you know, I. I think there's this incredible lack of community for a lot of people right now.
- [04:24]
A
Interesting.
- [04:24]
B
You know, I mean, Covid hits the school community gets disrupted. And I think it still is. You know, people aren't going to church the way that they used to go to church. Church membership is way down. Less kids are playing sports, so there's less of that community for moms and dads out there on the ball fields with their, you know, friends and their kids. Friends. And so I think there's this really big hunger that people are looking to a get out of the. Whether it's toxic or just less than ideal environment that is work today.
- [04:58]
A
Sure.
- [04:58]
B
And get into business for themselves, but not do it by themselves. Be a part of something greater than them. And that's what I see.
- [05:06]
A
That's a fascinating take. I mean, I really hadn't heard it articulated like that, but it's true. I mean, we have become so disassociated. And then you start to fill your time with social media and you get on your phone and next thing you know, we're all walking around together with our heads down and we're not smiling at people, and it's really. But, you know, business is people in math.
- [05:28]
B
Yeah.
- [05:28]
A
And, you know, the people piece is, is important. I mean, we're, we're tribal. We need that human connection. And, you know, the social media and the stuff we do on our phones is just a facsimile.
- [05:39]
B
Yeah.
- [05:40]
A
For the real connection that we need. And I think you're right. Franchising. Our number one value at home front brands is community. And, and there's a reason for that.
- [05:48]
B
I, I see that over and over again, Jeff. I've been joking with friends and even talking with franchise candidates. I'm in this moment right now. Here we are, you know, fall of 2025, married to my wife, Virginia. We've been married for 15 years.
- [06:00]
A
Yes.
- [06:01]
B
We've got three kids. And for the first time ever, we have three different kids in three different schools. I've got high school, middle school, and elementary school. Right. And it's, it's just, it's interesting that I am, I'm, I am trying to get my kids at every free moment. I have to put down the phone, get in the backyard, play some basketball, call this friend, go walk to grandma's house. And kids are just so inundated with distraction that isolates them. And I've seen it firsthand that it just impacts mental health, and it's just a tough space right now.
- [06:37]
A
It is, it is. You've placed and worked with and helped thousands of franchise owners. What few things make for an ideal candidate.
- [06:51]
B
There's a lot there.
- [06:53]
A
Or is there any such thing?
- [06:54]
B
You know, I guess I would start with timing is so critical. Right.
- [07:01]
A
Okay.
- [07:03]
B
I think there's this, like, ratio of desire to run towards something and this, like, fear of, like, pulling back from something. So it's like, are you running towards an opportunity or are you running away from something in your life that's a negative? Right. So I think the first thing is, like, mindset of when we get somebody in our pipeline that's working with us, the first thing that we got to do is figure out, like, are you there? Like, is this the time? Right. So the timing of it to me is number one. The second part of it is I'm a big believer that how somebody goes throughout our discovery process is an incredible indicator of how they will act and operate as a franchise.
- [07:46]
A
Okay.
- [07:46]
B
Yeah. Right. So like the ability to follow a process. Yeah, right. The acceptance that this is not like extreme entrepreneurship. Right? It is, it's entrepreneurship, it's business ownership, but you're not doing it by yourself. Like you got to fit the mold. Right. And fall into kind of what that process looks like as an owner.
- [08:07]
A
Sure.
- [08:08]
B
Right. So that's a big one. So decisiveness, ability to follow the, the process. The other, I think, funny thing that I hear people say all the time when they're going through some moments of self doubt is they say, well, I don't know, I don't know anything about this industry or I've never owned a business or I'm not sure if this is the right time for me. Right. And so it's some of those things that we then can look back at them and say, hey, good news, you're in great company. Right, Right.
- [08:34]
A
Yeah.
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B
Because what you're about to realize is when you start talking to franchisees, none of them knew anything about the industry.
- [08:40]
A
That's right.
- [08:40]
B
Right. When you come to meet the team day, you're going to realize, oh my gosh, I look a lot like everyone in this room. They're all in the same place I am.
- [08:47]
A
That's right.
- [08:47]
B
Right. So I think it's some of those things.
- [08:48]
A
Yeah. As far as misconceptions people have about franchising, what are some of the things that you hear the most?
- [08:56]
B
You know, I think that first off, people don't realize the, the vast environment and the vast opportunities of companies that can be franchised and are franchised. Okay. So first they think everyone thinks about hotels.
- [09:09]
A
Sure.
- [09:10]
B
And everyone thinks about restaurants. Right, Right. So immediately their head goes to commodities commoditization. It goes to high investment, it goes to high risk, it goes to low margin. It goes to things that people want, not things that people need. Right. So I think that's kind of the first barrier that you have to break down is look around in your community and look at all those signs. A great majority of those signs are actually franchise opportunities. Yes. Right. So the van that drove by, that was Mr. Electric. Guess what? That's a franchise. That's right. So that's, I think the biggest misconception is the lack of understanding of the vastness of the franchise space. Yeah.
- [09:53]
A
Are there mind shifts that you see people going through either in process or after award that help them be more successful as a franchise owner?
- [10:04]
B
Yeah, that's a good question. It's the aha moments. Right. That absolutely we see as people go through, you know, common. Commonly in that first interaction between a franchise candidate and a franchisor, there's this. There's this fear. Right. There's this, oh, geez, am I about to get sold? Or what is this? Is this somebody selling snake oil? Right, right. There's this fear. Like you walk into a mattress shop and somebody's going to try to sell you something. Yeah. And then you get a couple of calls in and you provide more information, education, and understanding. And people start to warm up and get more comfortable and they realize that this person is not trying to sell me a franchise. This person is trying to help me understand am I right for them and are they right for me. Right. And that's where all of the productive work really starts to kick off for franchise candidates. Yeah.
- [10:59]
A
Makes a lot of sense. And I also think there's this concept of accountability and being untethered as a business owner. You know, every. There are always consequences for every action you take or every action you fail to take. But when you're a business owner, they're not immediate. I mean, you can literally not follow the plan for a day or a month or a week or whatever it is. And, you know, your boss is not calling you because you don't have one.
- [11:27]
B
Yeah. Anymore.
- [11:28]
A
Now, where you will see the impact of that is 30, 60, 90, 12 months down the road, whenever that is. But like, that mindset shift of saying, look, I've, you know, if it is to be, it's up to me.
- [11:38]
B
Yeah.
- [11:39]
A
And the person that has the most to do with the outcome of my business. Business. It's going to be me.
- [11:42]
B
Yeah.
- [11:43]
A
And. And, you know, when. And I don't know what it is. You know, we've done profiling or personality analysis tools and all these kind of assessments that we've done. And we've assessed franchise owner groups after we've placed them, and we know their performance. And it's very, very difficult to measure somebody's heart.
- [12:01]
B
Yeah.
- [12:01]
A
Or to measure somebody's grit.
- [12:03]
B
Yeah.
- [12:03]
A
And, you know, so there's no absolute science to it. It's just like, how bad do you want it?
- [12:07]
B
Yeah.
- [12:08]
A
How intellectually humble can you be? How curious can you be? And the need for something to be done well needs to be greater than the need for you to be right. And those are just some of the things. But I don't know that we've figured out how to measure those things.
- [12:25]
B
Yeah. And I don't think anybody ever will fully understand how to do it. I think what I can say is that the expectation when somebody comes through the process and looks at a home front, brand opportunity. Yes. Is that we're going to have kind of armchair conversations on that very first call that have nothing to do with the business opportunity. And the reason we do that is we're trying to understand those intangibles.
- [12:50]
A
Yeah.
- [12:50]
B
Right. We're trying to learn what motivates this person. What is the pain point kind of are they running towards something, are they running away from something? Because it behooves all of us right away, right at the very beginning to figure out if we've got a potential match or we know right off the bat that this isn't worth the time and energy.
- [13:09]
A
Yeah. Because if we're their last best option because they couldn't get anything else, probably not a good fit.
- [13:14]
B
That's exactly right.
- [13:15]
A
Yeah. We want, we want them looking at this as an opportunity to improve their life to, to, to do something that they didn't have the opportunity to do before or to be part of a portfolio of a great asset base that, that is their family and their future.
- [13:28]
B
That's right. I mean, to your point, the magic happens years down the road if we've done the matchmaking.
- [13:32]
A
That's right.
- [13:33]
B
Right. It doesn't happen at the transaction at the very beginning. Yeah, yeah.
- [13:37]
A
Tom, you've been a part of many different franchise organizations and I'm interested in your perspective. What makes a great franchisor versus a good one or even a mediocre one?
- [13:51]
B
That's great. You know, I guess the word intentionality kind comes to mind. Right.
- [13:56]
A
For me. And you say that with purpose.
- [13:57]
B
I say that with absolute divine purpose, Jeff. But what I really mean is, you know, a franchisor is not a whole lot different than a franchisee at the end of the day. Like we all have our own unique motivations. We're all doing this for whatever, you know, value that we're trying to fulfill. Right. And that can be whether I'm buying a Chuck in a truck franchise and I'm going to do this thing and I'm looking for a full time job. Or it can be somebody like you who says, my intentionality is to build a company that looks like a 30 year old company in three years. Right. To build a meaningful platform brand that can impact so many different people's lives. Our customers, our employees, our franchisees, our business partners, our investors. So, you know, I think intentionality is number one. What's the plan? What's the goal? What's the mindset? I also Think that. And you know, clearly I'm the development guy, so I go to the development side, but I just think that I like a clear understanding of what we're doing in franchise development and what outcome we're looking for. Okay, right. So we talk about outcomes a lot. Yes. We're not in a bad franchisor can be chasing franchise fee dollars. Right. And it's happens often when you're getting started because you got to fill up the money and you got to fill up the account. Right. And so I think that when you can be forthright and look at this honestly and say our growth plan is not about collecting franchises and putting dots on the map, but our growth plan is making sure that from the very get go we are being extraordinary selective with whom we partner with. Right. Because if those first five owners aren't wildly successful, it's going to be incredibly hard for me to get my next five franchise owners.
- [15:42]
A
That's right.
- [15:43]
B
Yeah. So I think a lot of specificity, a lot of intentionality really being careful that the decisions that we make up front in who we partner with and how we do it is going to impact everything that comes after that.
- [15:55]
A
Are there things that people overlook when they're choosing a brand?
- [15:58]
B
I absolutely, all the time. That would be a long list. I think that it is the size and strength of the network. So whether it is at startup phase, whether you're 50 owners in 100 units or whether you're 500 owners in 1,000 locations, there is such value in the overall strength of that network that ultimately is going to drive value or not for you in your franchise business.
- [16:30]
A
Okay.
- [16:30]
B
Right. So meaning don't be intimidated that the franchise development team is working to fill up those dots on the map right around you throughout your market and throughout your state and throughout your region. Because that's our job. Because when we do it, it provides immeasurable opportunity for you. Whether that is when you're looking to sell your business, you have something that is way easier for a buyer to vet, way more attractive that you have a franchise network that is providing you with probably the most realistic buyer pool for your business. Right, right. So I always tell people like the best neighbor to have is a neighbor. That's crushing it.
- [17:12]
A
Yeah.
- [17:12]
B
Because when you're ready for that exit, that's the first phone call that you're going to make. That's right. Right. So I think that people can get intimidated by that when they look at a franchise system and they say, man, that's a diminishing opportunity for me. I see it the other way around, that the more productive we are in bringing a larger number of quality owners to build up the brand, the better kind of enterprise value that brings to the entire system.
- [17:38]
A
Is there one mistake that you see new franchise owners make and what advice would you give them or experience would you share to help them not make it?
- [17:48]
B
I tell every single person that I cross paths with in the fran dev process this exact same thing. Unsolicited advice from Tom. I say the biggest mistake I see people make is they hit a point in their business, whether it's three months down the road or six months down the road and they start to get antsy. Okay. And they say, okay, I've been following the recipe, but man, I have this idea and I think I need to try it. Even though it's not a part of the recipe. I tell every single person, I say that moment will come. I don't know when, but when that moment comes, do two things for sure. Number one, call the franchisor, call your business coach and say, has anybody tried this and what were the results? Right before you spend your money trying to test some idea that you have, when you get the entrepreneurial itch, see if the brand or some other franchise owner has already deployed some money towards that idea and we have some results that we can measure. Right? So people get antsy, they want to try something and I say don't do it until you call the franchisor and my God, don't do it until you have followed the recipe completely and you know what works and what doesn't work in your market and you've got some level of kind of success that you can track. So just wait, wait till you're making money. Wait till you've really vetted the entire model first.
- [19:12]
A
Is there one thing about Homefront brands that people might not know, but they should?
- [19:19]
B
You know, I mentioned it a little bit earlier. I think that we are an emerging platform of brands. But what you don't know is that we are a three year old company that has 65 employees, that has awarded over 200 franchisees, 750 territories. We are a three year old company that looks like a 20 or 30 year old company. Right. So break out of the idea that we are just getting started and this is Jeff and team's new thing. No, this is a platform that when you look at, you would guess was a 20 or 30 year old company. Yeah. Yeah.
- [20:01]
A
Of all the franchisees that you've awarded, is there any single success story that stands out?
- [20:08]
B
Yeah. Now, now I'm going to age myself. So I have.
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A
Is it yours, Cartridge World?
- [20:13]
B
Absolutely not. I'm darn proud of what we did. But no, that wouldn't count. You know, it's incredibly fun being on LinkedIn, checking text messages, having somebody find me on Instagram that I crossed paths with 15 years ago. Exact years ago.
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A
Yeah.
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B
And a lot of people that don't do this the right way might be fearful of that.
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A
Sure.
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B
But for me, it's the most gratifying thing to get the text message from a senior care franchisee that I helped 12 years ago that says, hey, I just crossed a billion dollars. It's those anecdotes. It's the things that people come from out the woodworks with good news. And they say, man, this is the best decision I made 15 years ago. Thanks again for whatever small part you played. Played in it.
- [20:59]
A
Yeah.
- [21:00]
B
That's about as gratifying as it gets.
- [21:01]
A
It is great.
- [21:02]
B
Yeah, it is great.
- [21:03]
A
I hear from people all the time they're still in the business or they've, they've done something else or they're doing something great now and they're just so thankful.
- [21:11]
B
Yeah. My son Steven took it over for me three years ago when I retired.
- [21:16]
A
Yeah.
- [21:16]
B
All right. The legacy stories are super meaningful. Yeah. You know, I, I sold this. I actually sold this business. I don't own that anymore. Yeah. Now I'm a multi unit franchisee with whatever.
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A
Yeah.
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B
You know, it goes back to that hotel California. I see people staying in it.
- [21:30]
A
Yeah.
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B
Even when they make moves.
- [21:32]
A
Yeah.
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B
And that's really gratifying.
- [21:33]
A
And you just, every time you do it just a little better.
- [21:35]
B
Yeah. Just a little bit better.
- [21:38]
A
Trends next three to five years in franchising. What do you see coming?
- [21:43]
B
I think, I think what I'm seeing is, and, and frankly, Jeff, it's a big reason why obviously I was attracted here were the kind of the industry, the segments that we plan. Okay. I don't know about you, but I, I am just, again, I guess I'd go back to Covid. You know, people again, got this big desire to reinvest in their homes. Sure. Right. Or their properties. You know, people are sitting on a lot of home equity. People are, you know, locked into interest rates at two and a half percent and they're saying, I'm going to fix this thing up. I'm not going, I'm not moving. No.
- [22:17]
A
Yeah.
- [22:17]
B
No.
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A
I'm not going to trade a 2 1/2% mortgage or a 6% mortgage.
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B
And if I'm Going to move if and if I'm able to. I'm going to hold on to this property as well.
- [22:25]
A
For sure.
- [22:26]
B
Right.
- [22:26]
A
Yeah.
- [22:27]
B
So I'm seeing a shift back to the need services more so than the want services. Right. You know, we went through a period where, you know, it was fitness this, pilates that, wellness this, and some of that certainly still going on.
- [22:42]
A
Sure.
- [22:43]
B
But I'm just seeing a big shift that it's away from some of that kind of sexy stuff and it's back to some of the more practical things that everybody needs.
- [22:51]
A
Well, just the one factor of real estate getting more expensive, it makes location based businesses more expensive that have to be in class A space or retail space. So a fitness concept or something like that, our designer concept has a location, but it doesn't have to be class A space. You can take advantage of lots of different types of spaces and our other businesses generally don't have retail locations.
- [23:13]
B
Yeah.
- [23:14]
A
So while the property values are going up and real estate's getting more expensive, that plays in our favor.
- [23:19]
B
Yeah.
- [23:19]
A
Because we're working on those. We're fixing those things, but yet we don't have to rent that space.
- [23:23]
B
Yeah, absolutely.
- [23:24]
A
Yeah. Perfectly said. All right, last question. If I'm somebody that's on the fence about franchising and I'm looking in the mirror to try to make that decision, what's the one question I need to ask myself?
- [23:36]
B
That's a great one. I touched on it a little bit earlier, but I do. I think it's that self actualization, the self realization that is this the right time for me? Am I ready to fully commit to what this means?
- [23:53]
A
Right.
- [23:54]
B
Do I have. Am I at that point in my life where passion and purpose are exceeding some of that security and safety? Right. Yeah. And I think it's interesting that there's just a subset of people that think that people that buy franchises are nuts. There's a subset of people that think people that start businesses are nuts. True. Right. I call it Drunk Uncle Larry. Okay. My biggest fear in a franchise development process is the holidays. Because incredible franchise candidate that has the self belief that's ready to do this go to Thanksgiving dinner and Drunk Uncle Larry's invited.
- [24:32]
A
Yeah.
- [24:33]
B
And they start talking about what they're going to do and this idea and this whatever the brand is, and Drunk Uncle Larry, who's never going to do anything other than work for the man and knock people down instead of building people up.
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A
Yeah.
- [24:46]
B
Is going to tell them how crazy they are. Yeah. Right. So I think you just really have to have that resolve internally.
- [24:52]
A
Yeah.
- [24:53]
B
That you're committed to doing this. Yeah.
- [24:55]
A
Yeah.
- [24:55]
B
And that translates when they start operating and then they start being decisive and they put the investment in. They have to. And they keep that motor down until that boat gets up on plane and they don't get fearful and pull it back. Yeah.
- [25:08]
A
You almost need to be just too stupid to fail. I mean, like you. Like you said, once you step across the line and that. That was the. When I was coaching little kids in football, I said, okay, you're on the team.
- [25:19]
B
Yeah.
- [25:20]
A
Once you step across that line, that white line onto the field, and you cannot recontract. You've already decided you're going to run, you're going to tackle, you're going to block, and if the ball's on the ground, you're going to jump on it. And you cannot recontract yourself. Don't even allow yourself the headspace to recontract, because at the end of the day, you only fail if you quit early. And if you're not successful today, you're just not successful yet. And you know business owners, and that's the great thing about franchising, is, like, you have the model so you don't have to burn the calories figuring the business out. You have to learn it, you have to execute it, and you have to do it. But you should be able to get really hyper focused on the small, vital few things that matter. And as long as you stay focused and as long as you don't quit, the only time you quit, the only time you're going to lose money, in my opinion and my experience, is if you quit.
- [26:09]
B
Yeah. Here, here. Get off the couch.
- [26:12]
A
Get off the couch.
- [26:13]
B
Get off the couch.
- [26:13]
A
Get in the game.
- [26:14]
B
Yep.
- [26:15]
A
Life goes fast.
- [26:16]
B
Yep.
- [26:16]
A
You only got one.
- [26:17]
B
Put me in, coach.
- [26:18]
A
Put me in, coach. All right, Tom, this has been great. Thank you so much for being on.
- [26:22]
B
You're the man.
- [26:23]
A
Yeah. So much wisdom for people out there, and I know it's going to make a difference.
- [26:27]
B
Been my pleasure. Appreciate it.
- [26:28]
A
Awesome. And for all of you out there, this is Jeff Duden. We've been on the unemployable podcast, and if you want to learn more about these incredible homefront brands, just go to homefrontbrands.com check out all the amazing brands, and if you want a free copy of my book, Discernment the Business Athletes Regimen for a Great Life Through Better Decisions, just click on the link below. Pop your email in there, you'll get an automatic copy sent immediately to your email, you can get it on Amazon too. Again, Tommy Ryan, Jeff Duden Unemployable Podcast Franchise Friday. Thanks for listening.