Alex Smereczniak

Well, why don't we franchise?

It solves both of these issues.

Other people come in with their capital, we give them a playbook, revenue, delivery volume, equipment discounts, you name it, all the stuff that franchising brings.

bring capital to open stores they handle some of the labor we handle the delivery piece win win win win win so we started franchising in 2021 we sold 118 locations in 14 months got a crash course on franchising and all the things that go into a franchise disclosure document ftd and then also selling them i learned a lot a lot of brands work with what are called fsos franchise sales organizations and they work with business brokers or franchise brokers

We did about half of our deals organically, because we were good on social and content.

The other half, though, we were using brokers of some sort.

And we were paying them 60% commissions on the franchise fee.

And I was like, OK, maybe they have some access to a network of people and whatever.

And the more we got into it, I was like, they're doing work.

And some of them are really good.

But I don't know about 60% worth.

And why is this happening?

I start talking to more and more brands.

They're all upset about it.

We don't know what else to do.

Because if you think about it, most franchisors, they started John and Alex's Gym or Coffee Shop.

And they're not venture-backed tech entrepreneur types.

They're thinking, how do I get more coffee beans cheaper and training manuals?

And that's what they're focused on.

They're not thinking about selling to sophisticated franchisees and putting all this stuff together.