Mastering the Art of Franchising with Jeff Dudan

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The Home Service Expert Podcast 1h 12m 4 speakers 7 chapters transcribed
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Who is Jeff Dudan and what is his franchising background?

All right, guys, welcome back to the Home Service Expert. Today I got a good buddy in town. You're always in town. He's Jeff Duden, the CEO of Homefront Brands. He's an author, podcast speaker, expert at franchises. He leads one of the largest franchises I know of. And here's what's crazy about franchising, Jeff.

What are the challenges and realities of franchising success and failure?

is the more I learn about it, a lot of people start a franchise, but the same amount of franchises exist every year. So that means people are failing just as quick as people are coming in.
Jeff Dudan 2:06
Now, are you talking about franchisors or franchisees?
Franchisors.
Jeff Dudan 2:09
Oh, yeah.
Yeah.
Jeff Dudan 2:10
Yeah, so 4,000 actively growing franchise brands, 90% of franchisors fail within 12 years, and there's good reason for that. So, yeah, every day roughly one comes into business, and every day roughly one goes out of business. Which is crazy. But I don't know. Is that any different than traditional small business, stuff like that? Maybe not. But look, franchising is a – it has to be a certain passion play because there is so much collaboration that has to happen with these franchise owners. They all have, they come from different places. We have a high sophistication, high net worth franchise owners, and then we got people coming out of corporate America for their very first business. And you've gotta be able to meet them all where they're at. So a lot of times people franchise their business and they don't realize that it's gonna take upwards of maybe a couple of million dollars of investment ahead of their revenue to be able to build the systems and the processes and put the people in place to meet these franchise owners when they're emerging.
Jeff Dudan 3:16
So unfortunately, a lot of brands get 5, 10, 15 owners and then they realize what it is and then maybe they decide to discontinue it. But ultimately, look, franchising is accelerating at an accelerating rate. There's 829,000 franchise establishments in the United States. One out of every nine people employed works by or for a franchise system, almost 9 million people.

Why is passion important for franchising success?

Jeff Dudan 3:46
And it's a significant part of small business GDP, which is generally 46% to 60% of our GDP. So franchising is giving people entrepreneurial opportunities on Main Street USA for their families. So, you know, when you're scaling a big direct business, you can go fast because you make the decisions. You say, we're going to implement this. I'm going to pay for this. This is the way it is.

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