In this blog post, we delve into a revealing podcast interview with Rick Mayo, Alloy Franchise President and CEO, and Jared Breen, Alloy’s Vice President of Real Estate and Construction. Together, they share invaluable insights into the world of franchising, emphasizing the pivotal role the real estate process plays in predicting franchise success.
Franchising has long been regarded as an attractive avenue for entrepreneurs looking to establish their own businesses while benefiting from the support and brand recognition of an established organization. However, the world of franchising is a complex and multifaceted one, with success dependent on a multitude of factors.
Key Factors: How The Real Estate Process Predicts Success
1. Early Engagement: The Foundation of Franchise Success
One of the core takeaways from the interview is the fundamental importance of a franchisee’s early engagement in the real estate process. According to Jared, franchisees who actively participate in the initial stages of real estate and construction tend to achieve greater success once their franchise business takes off. This early engagement goes beyond mere participation; it sets the tone for collaboration, fosters a sense of ownership, and ultimately becomes a reliable predictor of the franchise’s trajectory.
Jared, often referred to as the “Go To Alloy Franchise Guy,” is responsible for guiding franchisees through the process of getting their clubs open. He initiates an orientation call with franchisees, connects them with real estate brokers, and oversees the numerous tasks involved in the real estate process, from signing to the grand opening. In the rapidly evolving landscape of real estate, especially with the changes brought about by the COVID-19 pandemic, early engagement has become even more critical.
Rick Mayo stresses the importance of working closely with both national and local vendors, emphasizing the need for constant communication and a proactive approach. He believes that the sooner franchisees can make money and achieve success, the happier and more invested they will be in the business. The correlation between early engagement and early success is evident, and it is these proactive franchisees who rise to the top of the system.
“The top Alloy franchisees right now are the one showing up for calls and were proactive in the real estate process. It reflects on the way they will show up in their business. So the level of engagement early in the process becomes a reliable indicator of long-term success.”
~ Rick Mayo, Alloy CEO and Founder ~
Autonomy and Informed Decision-Making
Another key insight shared during the interview is the concept of autonomy in the franchise real estate and construction process. Alloy Franchise has evolved from having no required vendor for real estate and project management to providing franchisees with options. This change has significantly impacted franchisees, enabling them to take ownership of their businesses much sooner.
The idea of choice, empowers franchisees to make informed decisions and manage the people they work with. According to Jared, granting autonomy to franchisees compels them to embrace their responsibilities and navigate the decision-making process effectively. This approach reflects a balance between providing guidance and allowing franchisees to exercise their judgment, which ultimately leads to a more engaged and successful franchisee.
Rick emphasizes the importance of providing a structured process with clear options for franchisees. While choices are available, they are not overwhelming, ensuring that franchisees do not feel burdened by an abundance of decisions. This approach helps franchisees focus on the core aspects of their business and fosters an environment where informed decision-making is encouraged.
Core Values: The Bedrock of Successful Relationships
Rick and Jared highlight the significance of core values in their franchise system. They believe that simplicity and adherence to a set of core values are crucial for guiding franchisees through the real estate and project management processes effectively. The core values include unimpeachable character and sincere candor, which play a pivotal role from the very beginning of the franchising journey.
These core values underscore the importance of integrity and open communication in a process as tactical as real estate. Rick Mayo notes that entrepreneurship is a skill set, and living up to the core values is essential in maintaining a respectful and professional relationship between franchisors and franchisees. Candor is especially critical, as it ensures that both parties share a common goal and approach the relationship as a partnership.
Jared adds that maintaining a balance between professionalism and a personal touch is essential. In a highly intricate process like real estate, where numerous factors come into play, the ability to exhibit core values and build strong relationships can make a significant difference in the success of a franchise.
Early engagement, autonomy, and adherence to core values emerge as key factors that significantly influence franchisee success. Franchisees who actively participate in the early stages of real estate and construction, exercise informed decision-making with a degree of autonomy, and embody core values are more likely to thrive in the franchising world. Aspiring franchisees and franchisors alike can draw valuable lessons from this interview, understanding that active engagement in the real estate process is not just a precursor to success but a reliable predictor of long-term franchise prosperity.
Contact us to learn more and to see why now is the perfect time to become an entrepreneur as an Alloy Franchise owner!
- The importance of early engagement (04:03)
- The concept of autonomy and the impact of choice (09:19)
- Core values as a guiding lens (13:41)
- Managing emotions in running a business (16:26)
- Don’t take yourself too seriously (19:01)