Creating Generational Wealth: Untapping the Potential of Franchising

Welcome to course. I'm Barbara Castiglia of modern restaurant management. And today, we're going to talk about franchising one of our big topics that we talk about here. But we're gonna put a different spin on it and talk about careers in restaurant franchising. And, you know, it's been a hot topic. People, you know, the pandemic didn't make people shy away from wanting to own an operator restaurant and seeing it as a viable business for themselves. So with me today is Tarji Carter, who is the owner and founder of the franchise player, and we're going to talk about what that is. And she has a long career in restaurant franchising, and she can fill us in and all the the ins and outs and things and what she's done and what she's learned. So welcome, Taji. So tell me a little bit about how you got interested in restaurant franchising and what your career has been. So my entry into the franchising space was almost a fluke. I, worked in the hotel industry for many years and happened to, work at a hotel where the president of Citibank was, would stay when he came to town. He had just taken on this new role, and I happened to meet him and, folk focused brands was one of my accounts. And so the long and short of it is that, we we met and I met some of his team. And, I was then hired as Franchise sales manager for Carvel ice cream. And within eight months, I was promoted to director of Synne and Carvel, for the entire country. So it was a it was a huge, a step in the right direction, a great, a great, promotion, that I wasn't expecting, but that's really when I learned, you know, I cut my teeth on franchising. So what was it about interacting with all of these people that said to you, you know, this this is gonna be an interesting career path for me. And kind of flipping that switch. It was a challenge. I knew nothing about franchising. I had been in the hotel industry for quite some time. And was ready to take on something new, something exciting. It was a little scary. So that's how I knew it was the right thing for me to do. And I just I I just went in. I was a spudged. I learned everything that I could from every experience. And so I met some good people along the way. And, and and and just being at focus brands, there were there were a team of folks there who were very welcoming and, and helpful in in my ramp up period. So that was that was a great way to get started. So part of what you're doing now with a franchise player is, you know, appealing to people like yourself who you're you didn't know anything about franchising. You didn't know what it was, what kind of opportunities that it could provide. So, tell me about what the franchise player is, you know, kind of what your mission is, and why it's kind of so important to you right now to do this. So just just piggyback on what you said a little a minute ago. I was was a novice when it came to franchise So I would go to McDonald's with my dad as a kid, and we would I would get my happy meal, and he would you know, drink his coffee and we would have a moment, you know, almost, you know, a couple times a month, if not every week. And I never knew that franchising was an option, in terms of a career path or creating generational wealth. My dad was a very smart man, and I would imagine that had he known about it? He would have shared that with me, and he never mentioned it. So fast forward to my time at Focus brands when I started with the in the franchising space, I realized very quickly that there weren't a lot of people that looked like me and my family who were in positions of ownership. And so immediately, I thought, what can I do to get the information into the hands of those who may not already have it? And so, I spent fifteen years selling franchises for some of the world's most delicious brands. And realize that I need to do more. I'm I'm I'm more useful outside of a specific brand where I can bring this information to the masses. And so I created the franchise player, to provide education opportunities and resources about franchising to the Black community. I've learned that, franchising and and and creating generational wealth is is probably one of the fastest ways to get into business for yourself and not necessarily by yourself. And so I wanna share that information with, underserved communities, that could definitely use the information and provide additional resources to help put them in positions of ownership. So how are you going about and reaching those communities? Well, I start with my own family and my own friend group. That's how it really started. And then I I school around the country speaking at different events. And so what I've learned is that in within the franchising space, a lot of brands, a lot of sales managers, they tend to go to the same shows all the time and they see the same people. And so, I'm not afraid get out into, a community in front of an audience that doesn't look like me, that doesn't talk like me, and and and to just have a presence. Right? You know, I think that's how we form bridges is by just being present. And so I get invited into a lot of rooms simply because I have a present. So I might speak at an event. I I spoke at one event in Dallas, earlier this year. And from that, I was invited to speak at another event in Houston several months later. And it was just a matter of being in the room with folks who really had an interest in learning about franchising how to get into it. And how to how to be successful at it. And so every time I speak, I'm invited to do something else. And so the brands that I work with have the luxury of being able to be in the rooms with me because I'm always sharing about the brands that have partnered with the franchise player And so that's one of the benefits of being affiliated and, and and again, getting the message out to the masses in a way that is, it's it's digestible, right, because if you're not familiar with any topic, not just franchising, it can be it can be intimidating. And so, I I I deliver it, I believe, in a way that makes it, relatable, easy to understand, And, and people ask really great questions. I just, spoke at a Juneteenth event not too long ago. And, and people were asking really great questions and follow-up questions. And so there was a line for me waiting for me after I left the stage because people were really so intrigued and wanted to know how to get how to get into it. And, again, how to be successful and how to then bringing their families and their friends in as well. Right. I mean, you mentioned, you know, creating generational wealth and, you know, so much of what people strive to do is to, you know, create something that they can share with their family, work with their family, and also pass along to, you know, family members, to sons, daughters. So what are they what are they telling you that are their goals and why they're interested in franchising. So it runs the gamut. There's some folks who are in corporate America, they just don't feel valued. They don't feel like they're being paid, what they're truly worth, what they bring to the table. And so they're looking for a career change. Some are looking to add additional streams of income to, you know, their their nine to five. Others are looking to buy an investment for their children that are in high school and college. So it really runs the gamut in terms of why they wanna get into it, but they've they've heard enough about it that they're interested and they wanna learn more. But they also don't wanna lose their shirt. Just kind of taking a stab at it. Right? And we I've seen that happen time and time again where, you know, I talked to I have a lot of, like, athletes and, entertainers that I work with, and and they they don't wanna make a misstep. Right? They wanna make sure that they're parent for life beyond the field, beyond the court, beyond the stage. Right? And so, I'm able to have those one on one conversations with them. And really help to put them, you know, set some realistic expectations, right, because you have to be involved. It is your business. You can't just run some, hire someone to run it and expect them to treat it the same way that you would. So I'm having really honest conversations and I say, listen, if you were my relative, this is what I would tell you. Right? And so they really appreciate that. I think, you know, if I I'm not afraid to say, hey, I I don't know that or that's a little bit beyond my scope. Let me get you an sir. Let me put you in touch with someone who can probably answer that better for you. And, that really helps to create a lot of trust between, you know, me and and and the folks that I work with. So the franchise player is kind of for a wide cross section of people. You know, you're saying you're working with athletes who may be a brand in and of themselves and connecting them with a brand that kind of fits, as well as people who are just kind of stepping their toes in the water in this and really, you know, won a lot of hand holding. Absolutely. So at the franchise play, we have different positions we call them. We have the starter. We have the all star, the MVP, and then the coach. And so the starter is just that someone who's just getting started The MVP is someone who's worked in operations and understands the business backwards and forwards. They've they've handled, businesses at a multi unit level. Then we have the AllStar, which is someone who, may own a concept and they wanna convert it to a franchise. And then the the coach would be someone who's already in franchising, but they're looking to diversify and take advantage of some of the incentives that we're able to negotiate. So we work with brands who, have made DeI a priority, in their walk in the talk, you know, and by doing that, what they do is offer discounts, on the franchise fees, and sometimes the royalties, and then offering some additional support that were able to negotiate on behalf of the franchise players that come through the program. Why, I guess, you know, why are these brands doing this now? Why wasn't it being done? You know, you you noticed it. You know, there weren't people who looked like you coming in the door as often. So you know, why is it now? Is it is it that people like you have been, you know, saying, hey, you know, we need we need this We need this representation. And also the people who are buying this food are people who look like you. So they wanna support themselves too. Yeah. I think, unfortunately, a lot of what's prompted, a lot of the brands to really take a a hard look at this is some of the, rumblings of what happened in twenty twenty, you know, the murder of George Floyd was huge. Right? And so a lot of brands, earmarked dollars towards, black incentives and and and other, ways to support the black community. And so I think it really shined a light on the fact that to your point, a lot of the customers look like me. Right? A lot of the folks that are at the door level looked like me. A lot of the folks that are in accounting looked like me. So I think a lot of the brands just kinda had to sit with that for a minute and say, you know, what are we doing? Are we doing enough? And there are a lot of brands that have stepped up and said, listen, you know what? We've not done a good job. And we wanna do better. And so you have to start somewhere. But there are some brands that are still in denial. They think they're doing a great job or You know, they they they just are in denial about it. And so, you know, we wanna work with the brands that understand. You know what? Even if we don't have, a diversity program in place today, we wanna do better. We wanna get started, and maybe you can help us. And so I have those tough conversations as well. So any brand that we partner with, they they, you know, they they sign a letter of of understanding that says, you know, this what we're going to offer. And then, you know, and they just kinda put their hand on the bag that says, you know, we're gonna do our best. And when we fall, hold us accountable, But let's have those conversations, have those tough conversations so that we can do better and we can do better collectively. So if people who are approaching you, it can, as you mentioned, the different levels. So it could be, say, I already own a restaurant or I'm operating a restaurant or I have an idea for a concept. That could be a franchise. So someone like that can approach you and and be helped by the franchise player as well as somebody who who wants to buy into a system? Absolutely. So someone who owns the concept already, they would be considered an all star. And so we would we have the systems in the in the team in place that can help them, create their franchise disclosure document create their their manuals, operations manuals, their training manuals, their franchise manuals, and so, of course, I would offer, and my team would offer the consulting piece, around that to help them get into business. Right? Because there's a lot of consulting that takes place before you get your disclosure document. Lot of questions, a lot of, answers that you might not have just yet. And so we we dig pretty deep on, into, what the business truly has, what it doesn't have just yet and figure out where the where the holes are. And then, like I said, anyone who's student franchising in general. We, you know, again, I've been selling franchises and working in the franchise sales and development space for over fifteen years. And so I've seen a lot. I've worked for over ten brands, some of the world's most delicious brands. I mentioned Cinnabon and Carvel, but I've also sold for Duncan and Baskin, wingstop, edible arrangements, and Bojangles chicken. So I've worked with some pretty big brands, and I know that, you know, a lot of the brands that I've worked for, they, they they, they they get it. Right? You know, and some of them understand that, you know, we gotta do better. Others already have, minority incentives in place. And so, I'm still connected to a lot of a lot of the folks at these brands, and and sometimes they'll lean on me to say, you know, How how can we help you? You know, that I get go with that question a lot as well. So it's it's a matter of give and take. You know, what I do doesn't just benefit the players, but it also serves as kind of a a third party diversity program for brands that don't have the capacity or the bandwidth to create their own. Kind of like a delivery service. In a way. Yes. So when, you know, when somebody goes to your site, what kind of resources are there available for them, if they're just like looking around and and you know, what are you offering them in terms of educational resources? Yeah. So we offer a sick well, we're going to be offering a six week course that's rolling out this fall. And it's basically six weeks to franchise ownership. So myself and my team of ex industry expert friends, will be teaching about all the different aspects of franchise ownership. So starting at the, due diligence and application phase, going through, real estate construction, design, training, and then operations, you know, all the way up to grand opening. And then what happens beyond that. Right? So I also have a really great connection with a young woman who started a program that helps franchisees go from being owner operators to owning an enterprise. So maybe they own one or two and they wanna branch out and and then, maybe either acquire some additional stores or develop additional stores and she helps to train beyond what the brand offers. So able to take that mindset from being, just kind of a single owner operator to then owning an enterprise. So we have a team of folks that offer, assistance every step of the way throughout the process. So, you know, that kind of reminded me of that the role of the mentor, and, you know, really working with people, you know, to invest in their success. So, how important has the role of a mentor been in in your life and in in what you're doing now? I say having a mentor, having multiple tours is very important. You know, no one knows everything. Right? And so, I have had, mentors along the way. They don't know that they've been mentors for me, but, you know, everyone's time is so limited tough to get somebody to say, hey, yes. I'm gonna mentor you. So you have to really kind of, figure out how you can get from them what you need at the same time, offering something back to them in a way to say thank you. And so I think it's just been very important for me to have, mentors during every step of my learning process. And so in the franchising space, I've connected with folks, like I said, industry experts in the different within the different disciplines to learn what I need to know as a franchise sales professional to know enough to make me dangerous, right, so that I can put folks in touch. And so I think for the past fifteen years, I've been sort of a a collector of people, if you will. And, some of the industry's best folks who are really working at, a level of excellence that really helps a lot brands grow and become, the the the large conglomerates that they are today. So mentorship is not necessarily a formal, you know, contract contractual relationship as much as kind of being the sponge that you mentioned before and taking in with the people who are are around you. Yeah. I think, you know, time is limited. And so for someone, you know, if you're if you're lucky enough to get someone to say, yes, will mentor you. You can shadow me. You can do all these things. Then great. But if you can't get that, I would say just be resourceful. Listen to webinars, watch their social media. There are so many ways that we can take in information and learn these days. If you have to really be nimble enough, to know how to, you know, to manage that process. And so, just making sure I think, you know, having a mentor, and then, you know, just learning everything that you can, but then also, paying it forward. Right? So if there's someone that takes an interest in what you do, you know, maybe you can offer some sort of support to them. And if you have the capacity, to take them on as a mentee. You know, do that as well because I think, you know, karma, good karma is always something, that you wanna have on your side. So what are some common is misconceptions and apprehensions that you hear about people who may be reluctant to try franchising. Yeah. That's a great question. So there are a lot of folks who don't understand, like, why would I pay someone a royalty to sell chicken or donuts or whatever it is? And you know, what you're buying into is the brand equity. Right? Number one, you're also buying into a proven system. Something that's been battle tested. And so I could easily go out and start Tarji's donuts and I'm making some customers. I may build a following. But if I build a dunkin donuts, the Brent equity holds so much weight. That, you know, I'm probably gonna get a lot more customers with a dunkin than I am with a Tarji's donuts. And so when I when I explained it, you know, in in that way, they they understand And so your you know, the franchise fee is really your your ticket to entry. And then the royalties are, you know, your your your monthly fees, your monthly rent that you pay to continue to be a part of that program. And so it's just, getting over that hurdle, I think, is really big for some people. And and again, I'm I'm all for if someone has a concept that they wanna start on their own, you know, by all means, if you feel that that's the best approach, but I think franchising is really, one of America's best kept secrets. And I think it's really a great way to get in of business and hit the ground running, without having a huge ramp up period. So, you know, for people who you know, wanna start a business and they're they're thinking like you, you know, do my own donuts and all of that. You know, how do you get to them to kinda flip that switch and say, you know, you're you're not in it on your own? Know, it's not gonna just be all on you and all of the payroll and all of these things that you're gonna have to handle, you know, and all the hours and all of that that if you're within the system, you get another other people, multiple people, marketing help, all of those kind of resources that are you know, going to be working with you and you are on a better better footing, in the long run. I just had this conversation two days ago with a young woman who bought into a chicken franchise, and, the company just didn't offer her the support that she needed to be successful. And so she was able to end her agreement with them and said, well, listen, I'm just gonna I'm gonna do my own thing. I'm going to, I certainly had one unit. And she said, I'm just going to start my own franchise. And I said that that sounds very, very interesting, you know. And I said, I, I, I commend you for wanting to do that. But let me tell you why you might wanna consider buying into an existing franchise accept. And so I explained what you just shared about the amount of support that she would receive if she were with a brand that truly had, had a a system in place that could support franchisees the way that she needed the support with the other concept. And at the end of the conversation, I said to her, I'm not saying this to dissuade you, but I just want you to understand the level of support that you receive, not just from training perspective, but construction, design, real estate, marketing, market planning, you know, the list goes on and on. And when you have a problem or an issue, you make a phone call. There's someone at the other end that can help you. And, in said, well, you know, you've really given me a lot to think about. I'm still interested in doing my own concept, but I'm not gonna negate what you've just shared and I'm not gonna make any decisions today. So it goes back to having those realistic conversations and setting realistic expectations. And I said, you know, I she was gonna name the chicken concept after herself. And I thought, oh my gosh, like, what? This is gonna be a huge uphill battle for her. And if she's up for the challenge, then great. But, you know, I just I wanted to give her some realistic information that she can use. And I think, I think she's considering, maybe going in a different direction. Well, I think we've both seen, you know, people who come into this and they have a concept And they think, okay, you know, franchise. But before the concept is even tried and true, you know, like, they haven't really worked out all of those kinks and everything to know that it's something that is franchiseable. And they're they're more concerned with selling the franchise than than putting that system in place. And those are the ones, you know, when we go to these shows, we see people, you know, oh, it's the new thing. It's this, you know, the new trend or whatever. And, you know, it it's more about selling what the what the concept is, then whether or not it's gonna work. And and it's kind of a shame, you know, talking about the support and that, you know, she should see that this thing she was complaining about not getting the support from the one franchise is the thing that she has to would have to create herself, because you need to put that system in place. Yeah. Yeah. And I I explain that to her. And I, again, I think she I think she gets it. I think she's just, you know, I think the ego has to move out of the way a little bit. Right? And so there are a lot of newer concepts where, you know, the the term franchising is really catchy right now. It's trendy. And so to your point, again, There are some brands out there that are started in the in the the founders, you know, they're they're in it kind of for the short game. Right? Collection of the franchise fees and to say I own a franchise. The long game is really, you know, the royalties, right, you know, throughout the length of the the agreement. That you collect from your franchisee provided they're successful. And so I think the most important thing is to make sure that you have systems in place to support the success of your franchisees, and, and you can't really lose sight of that. Now now now I will also say every brand had to start somewhere So I have worked for some brands that said, listen, when we were first starting, we were looking for anyone with a checkbook and a pulse. Right? And so, you know, we've seen that. But eventually, they they worked out the kinks and got to where, you know, they were able to scale and replicate. Right? And so that's that's the big that's a long game. So I think, you know, the the support is really what people are buying into. You know, franchise disclosure document outlines, clearly outlines the support that the franchisee is obligated to provide to the franchisee. And, and and and and they may offer a little bit more than that. But ultimately, it is the business of the franchisee. They are the owner. They're the one that has to make sure that it's successful at the end of the day. So when you meet a person, how do you kind of pair them with what franchise might be a good fit for them. So we have a very deep conversation about, you know, who they are? What makes them tick? You know, what are they passionate about? What what what are the things that they tend to shy away from? So I I like to dig deep and really get to know everyone that I work with. And then we go through a list of options that that could be a good fit. And then I see how they respond. Right? You know, if it's pet services, if it's food, if it's senior care. You know, the list goes on and on. There's, you know, hundreds of different industries and thousands of different concepts. So really honing in on who they are as an individual. And what their ultimate goals are, right, are they looking to stay on their nine to five for another ten years? Are they looking for something that's absentee owner or semi absentee? So digging deep really trying to understand what they're looking for. And then going through those lists, you know, the list of viable options and figuring out, you know, then we narrow it down to the top three, and then we'll ultimately get to the one. So it's a lot of conversations, a lot of, Zoom calls, and, and really just, gathering of data. And so once we do that, we can really help folks and then go into the brands of choice and and and seeing if they're they're going to, come on as a, as a partner with us, and offer some sort of an incentive. So, just pairing them with brands that offer that type of support and then also you know, working with brands, like I said earlier, that are really committed to, the DEI piece. So how important is the financial aspect. And another thing that's, you know, both of us know is not talk to anybody about how to really be conscious of your financial future, your your financial present, you know, we we don't really teach that enough to kids. About the importance of all those things. So, you know, how how do you get someone in the in the really good financial shape so that they can embark upon a franchise? I I get inquiries from folks that, you know, just with all different backgrounds. Right? Some folks are very green. They don't have any money, but they they it's a goal. Right? It's a it's a dream. It's it's they have hoped that one day there'll be a franchise I see. So that's a different conversation than someone than someone that says, I have about two hundred fifty thousand dollars, and I I need to do something with it. Right? So there's there's two different conversations that are taking place. The first, you know, I would I would talk about, you know, what most brands are looking for from a liquid asset and net worth perspective, credit score, things of that nature. And find out where they are and say, okay. Well, you're not here today, but here are some things that you could probably do to prepare for ownership. Down the line, whether it's gonna be six months, a year, three years, what have you? With with someone who already has the funds, And maybe they have some cash in the bank, but they don't have all the money that they need to get started. I suggest you know, talking to their sphere of influence, who are your friends, who are your your your family members that you trust, who are financially and fiscally responsible and start having conversations with them. Listen, I've been thinking about, you know, purchasing a franchise or buying a territory. And I wanted to come to you because I respect what you do. I think you're very responsible. And I was wondering if you would be interested in learning about something that I'm interested in investing in. Right? So start having those conversations with the people that you trust. And then, of course, also being someone who's trustworthy, right, because it goes both ways. So, I would say that. And then I also, you know, have relationships at the franchise play. We have relationships with lenders, you know, whether it's private equity, you know, traditional banking, we have again back to the investors of, you know, the the the athletes and the the the entertainers you know, they're looking to partner as well. So depending on the person's background, we can, make introductions and let them have a conversation and see if there's anything there. We don't broker the relationship. We just put folks in touch and see if there's anything that can come with it. So different conversations based on, everyone's back. Ground. What would you say are some of the lessons that you've learned along the way, you know, about franchising about operating a restaurant and, you know, and things that, you know, maybe the pandemic and what how that kind of has changed the restaurant landscape You know, so what are some things you've personally learned along the way? Gosh. The pandemic, I think, taught taught me a lot, but what I learned about the the restaurant space, the franchising space, is, you know, the brands that had, that were nimble were able to survive. Right? So if you had a drive through, an app, some sort of digital marketing where folks could communicate with you, curbside delivery, and then third party delivery. Right? So if you have brands that had, you know, at least one of the four, you know, they were doing well. One brand that I truly, I I I just just believe that they did such a great thing during the pandemic, is they were able they was they wouldn't be so nimble, is edible arrangements. So during the height of the pandemic, you know, no one's buying a a pineapple bouquet. Right? But they had inventory. And so what they started doing, because no one was going to the grocery store, they started selling whole produce. Right? So what a way to be nimble and innovate and to think about the inventory. Right? So now we're talking about supply chain, waste, and then also being able to offer your franchisees a way to continue to generate revenue. And, I I highly commend them for for making a decision, right, having the leadership in place that could really look at the situation and and and truly turn it around. And by doing so, they were deemed an essential business by the government. And so they made some really good decisions during that time that really helped, their franchisees to stay afloat and to continue to be successful. I think you know, don't quote me, but that was probably one of the best years of franchisees had seen in a long time. If we're sitting down five, ten years from now, what do you hope the franchise player? What impact do you think it would have? You know, particularly in, you know, in the landscape of franchise ownership. Yeah. I my goal is to to reach as many people as possible, right, to I don't never I don't I don't put a number on it in turn, like, you know, we have a hundred black owned franchises because I don't have a crystal ball. I don't know that that's doable. Right? But but but I know that in five to ten years from now, the franchise play will have helped multitudes of people to learn about the franchising industry to understand what it is and what it isn't. And to put people together so that they can find the the resources, the access to capital that they need in order to get started into get started on a solid foundation. Perfect. Thank you so much. Thank you. It was great. Thank you for having me. Thank you.