Investing in a Franchise During the Pandemic with Jessica Yarmey: An EOFire Classic from 2021

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire. are brought to you by the HubSpot Podcast Network, the audio destination for business professionals with great shows like Business Made Simple. Today, we're pulling a timeless EO Fire episode from the archives, so the giveaway may not be active, and we'll be breaking down investing in a franchise. To drop these value bombs, I am brought to Jessica Yarmy and the EO Fire Studios. Jessica is the CEO of KickHouse, a modern kickboxing franchise. Before starting this entrepreneurial endeavor, she spent over 20 years promoting and protecting top global fitness brands.

0:37And today at Foundation, we'll talk about finding the right people you want to march with. We'll talk about being part of a network. Everybody is working together to get through the crazy times that involve businesses and know that you're partnered with a bunch of other entrepreneurs pursuing the same goal and so much more. And a big thank you for sponsoring today's episode goes to Jessica and our sponsors. Business Made Simple, hosted by Donald Miller, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals Business Made Simple takes the mystery out of growing your business.

1:10Join my friend, Donna Miller, each week as he shares value bombs on topics like the secret to making better marketing decisions. Listen to Business Made Simple wherever you get your podcasts. Is now your time? Visit thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2 ,000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com. Jessica, say what's up to Fire Nation and what is something that you believe about becoming successful that most people disagree with?

1:49What's up, Fire Nation? I'm going to be controversial here. I don't believe in work-life balance. I believe in order to become successful, especially in starting a business, like you need to be all in. This needs to be heart, soul, hours into your business. And for me, the trick is you need to love what you're doing and you need to love it so much that it's not painful to be all in. It's not painful to have no line drawn between work and life. It's Kevin O 'Leary from Shark Tank. He talks about like the intensity of being an entrepreneur. And that's really legit. And really every bit of your time and your brain power needs to go into the launch.

2:43But this is controversial because like we don't talk about the grind. It's more politically correct. It's more glamorous to talk about work-life balance and talk about a four-hour work week. and especially if we talk to entrepreneurs who have already made it and we look at their schedules, your days are more balanced once you've already made it. So it's not fair to like make that comparison. But if you're in a startup mode, if you're trying to launch, there's work there. Like there's a lot of work. Jessica, I want to break in here because I want to disagree with you. Like I really do because I know Fire Nation wants to hear that like work-life balance is possible right from the beginning and yada yada.

3:26You can do life and you can do health and you can do business and family and all these different things, but it's not. Because if you don't commit 100 % to this entrepreneurial venture, somebody else in your competitive realm is. And they're gonna beat you every time. They're gonna beat you bad and they're gonna crush you like a little stone under their feet. It's just a reality. Like the reason why Entrepreneurs on a Fire became a media powerhouse, I outworked every one of my competitors. Nobody was willing to do a daily podcast. I did it for 2000 days in a row. I won, period. I worked everybody else.

3:57That's how it happened. And to your point, Jessica, which I love, I now in 2021, which by the way, is nine years after I launched, I have a work-life balance now. And not always though, like right now I'm in unbelievable heads down book launch mode. My book comes out March 23rd. It's my first officially published book. Like I'm all in, work-life balance out the window. After that, I'll be able to get back into some work-life balance. But that's because, you know, I have to certain levels made it to that degree. So it can come, Fire Nation, down the road with success after you've already grinded your face off.

4:33And as I shared during the introduction, this episode is all about why you should be investing in a franchise during a pandemic. And I want to start off with a bang, Jessica. I mean, you must get this question a lot. So I just have to start the interview with it. why the heck did you decide to build a brick and mortar business during a global pandemic? I know it's crazy. I'm not a risk taker by nature. I'm super calculated and intentional with everything that I do. And I've definitely gotten that question, like, isn't this crazy? Isn't this risky to start a fitness concept? And my immediate answer is really that it would have been more risky not to start KickHouse.

5:25If you think about it and you look back at the year we've all just had, there's been so many pieces of our world that have been in flux, that have been moving around, that have been like shifting under our feet. And if the world is shifting and you're staying still and you're just sitting waiting for normalcy, you're just waiting for like a return to the way it was, you're missing opportunities. You're gonna get passed by. JLD, I know you're a fan of Warren Buffett. Love him. And there's so many things that he has said that like ring true for this pandemic. But one of his most famous quotes is, is be fearful when others are greedy and greedy when others are fearful.

6:13There's so much fear in the world right now. And especially when it comes to brick and mortar, you know, especially when it comes to fitness and brick and mortar. But one of his other quotes that's maybe lesser known is risk comes from not knowing what you're doing. And I've been in the fitness space for almost 10 years now. This isn't coming out of the blue for me. Like I've been working on this in my mind for a while now. Maybe you've been working on your book in your mind for a while now. So this isn't me diving into a brand new industry and trying to run a contrarian play. This is, I have an understanding of this space and this landscape.

7:02and really that's what gave me the confidence to just dive in and like run this contrarian move. So I love that quote and Fire Nation, I just wanna say it one more time. It would have been more risky not to start and sometimes you just have to look in the mirror and say that like, listen, I get that there's never a perfect time to have kids. There's never a perfect time to start a business. There's never a perfect time to do all these different things and so sometimes it's just more risky not to just say, you know what? I'm going forward. on making this happen. And let's just be honest. I mean, Jessica, this was a serious contrarian move.

7:38So what would you say was the hardest part about this move from the beginning? Oh my gosh. It's always difficult to go against the grain, to swim against the current. And literally everything this year has been swimming in the opposite direction. And I guess in a lot always, everything still is swimming in the opposite direction. And there's definitely still that double take when people hear this story. They're like, you're doing what? And there's still studios and clubs that are closing. There's still clubs that are filing for bankruptcy. There's still those getting out of the game and I'm getting into the game.

8:19But that's the contrarian move in a nutshell. But that's been the hardest part is believing when others didn't. And I think a lot of entrepreneurs have that side to their story, a doubter, or maybe multiple doubters are saying, wait, you're doing what? You're absolutely crazy to do this. And that comment, when it came to them, it didn't turn them away from what they were pursuing. If anything, it inspired them to double down and recommit to that path that they were already on. One thing that I love talking about, Jessica, during Entrepreneurs on Fire interviews are biggest takeaways, biggest lessons learned.

9:04So going through this process, I mean, very contrarian. I mean, you, again, during a global pandemic, we're talking brick and mortar. People are fleeing them. People are saying they're never going to recover. Their doors are never going to open in certain industries and certain niches and verticals. What lessons did you learn during this process? JLD, there are daily lessons at this point. I am still learning, but one of the biggest lessons that I learned, I would not have been able to pull this off and pursue this contrarian move and start a company during a pandemic if I didn't have partners around me who also believed and who also saw the opportunity.

9:49It would be super difficult to take on a contrarian stance on your own, being a solopreneur, if you will. I'm an entrepreneur, but I've got a squad around me, and that squad keeps on growing in size at this point, which helps balance out those days when maybe I see everyone swimming in the opposite direction and I get those thoughts. Should I really be doing this? Those partners are keeping me centered on our mission. So my lesson for you, Fire Nation, is find good partners. If you're a solopreneur, make sure you have people in your corner to complement your skill set and fill in holes in your skill set and bounce things off of when times get tough, or maybe you just need a second opinion, or you need a little pep talk.

10:49And JLD, maybe you found this when your wife joined your podcast initiative way back when. It just kind of adds fuel to the fire, so to speak. when you're all on board and it's like you are on a ship and you're all heading in one direction, I mean, you're like, we have to make this work because if we don't make this work, if this ship goes down, everything goes down. Everything that's on board, all the luggage, all the cargo, or at the same time, like another weird analogy could be like, hey, we actually landed on a shore and then we burned the ship. So there was no retreat. There was only one way to go and that was forward.

11:20And that's what happened when we came together. And when Kate joined the team back in 2013, you know, just about eight months after I launched. it went from me being like, you know, I think I can make this work kind of a little bit of a side hustle here. Kate has a great job and as an account executive doing her thing, like life is good. Like we're all happy here. And you know, her paycheck's coming in. So at the end of the day, if I go up in a ball of flames, like we still have that support, but then, Hey, when that goes away, we're like, Hey, we need to do this. This needs to work. And there was just no other alternative, Jessica.

11:49So you did kind of give me a warning a little bit that you were going to put me on the spot there. Was that it? Yeah. And I love that idea of burning the boat. Yeah, do it. And just having, you know what, we're all in. And it's a lot easier to battle and be all in when there's somebody at your side who's just in it with you. And it just makes that entrepreneurial journey a little bit less lonely and a little bit less daunting. And in fact, some of the biggest venture capital firms and just startup companies, the Y Combinators of the world, they won't invest in a solo entrepreneur, in a solo person that's starting a business.

12:30They make you go get a partner. They go make you get somebody who's going to challenge you, who's going to bring a different skill set, who's going to make it real, who's going to be hopefully up when you're down and you'll be able to pull them up when they're down and vice versa. And they've realized that these companies that really succeed have that. They have the partnerships and it's the right partner. Because there is some truth in that. I like all ships, but not partnerships. Because if you get the wrong partner, that's a sure sign for disaster coming down the road. But the right one, I mean, that's going to amplify everything on the good side of things.

13:02And Fire Nation, we're going to talk about why would someone want to invest in a franchise? And basically, what questions should you be asking if you're thinking right now, hey, this could be an opportunity for me? and so much more when we get back from thanking our sponsors. Are you ready to close 2023 out strong by surpassing your revenue targets? Q4 is the time to make it happen. But in order to do that, you need the right tools to help you fill your pipeline, nurture prospects and close deals. Lucky for you, there's the new HubSpot Sales Hub. With HubSpot's Sales Hub, you're able to supercharge your sales process so you can find, track and close deals all in one powerful, easy to use platform.

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16:08Clay Clark himself today at Thrivetimeshow.com. Knowledge will not attract money unless it is organized and directed through practical plans of action. Become the next success story. Schedule your free 13-point assessment today at Thrivetimeshow.com. All right, Fire Nation, we're back. And why, Jessica? Why would somebody want to invest in a franchise, let alone in the midst of a pandemic? The franchising model is just super powerful. I got my start in franchising back in 2008. I was working on the Burger King business at an ad agency. And you talk about a dive into the deep end of franchising.

16:50The Burger King structure is so vast and so complex. But when everyone marched in the same direction, it was so powerful. You could feel the energy in the system. You can feel like the mountain moving. And with KickHouse, it's a franchise system. But more importantly, it's a family with literally everybody collaborating and chipping in to move this mountain, to add momentum and make this system great. we're still as we're talking we're still in the middle of a of a pandemic and franchise sales are increasing because of the desire to build something entrepreneurial but then also have the support of a system and and not be out there totally alone I think it's scary right now if you're out there all alone.

17:51In a franchise system, you are part of a network. You're part of an owner family. And my kick house owners, every one of them, they're bringing their best skills to the table and contributing to this mission. Everybody is truly working together to keep all studios afloat, to work together to get through this crazy time. I want to talk about specifically who makes a good candidate and why. You've come across people who just aren't fits for specific reasons. You come across people, I'm sure, who are doing something. You're like, man, that person would be a great candidate to own a franchise. Let's talk about specifics.

18:37What makes a good candidate? What makes a bad candidate? Just kind of talk through this process of what you've seen in your journey here? I've worked with hundreds of franchisees at this point with a variety of backgrounds. I have kick house franchise owners who are doctors. I have one who's a CTO. I have a police woman who has this kick house business on the side. There's no background that's a template for a good franchisee. For me, it's more of a mindset. You need to have an entrepreneurial mindset. Do you also want to put your heart and soul into building something? Do you share the vision of what's being built?

19:31do you want to be part of a nation of other entrepreneurs really pursuing the same thing or do you want to go and build on your own? It's really two separate paths. And in the KickHouse network, we're all marching toward a common goal. And there's that partnership piece that we talked about earlier. So you're partnered with a bunch of other entrepreneurs pursuing the same goal. You're not an entrepreneur out there alone. You're not that solopreneur. You're part of a family. And that's really where the momentum comes from in a franchise system. So there's a lot that I was taking notes on there, Fire Nation, because it's so important to realize it's more of a mindset.

20:23Like, do you share in that vision of that franchise? Do you want to join the march towards a common goal that by the way, has already begun? Or are you going to, on the other side, be like, no, I actually want to start my own march. I want to start my own thing. I want to have like complete autonomy from day one. Or do you want to again, join that march towards that common goal that's already begun with a built in, and this is key, accountability group? Because people are there. They're supporting you. You're going to be facing similar challenges. You're going to be able to reach out to people who have already faced that challenge because they're four months down the road, eight months down the road, a year down the road.

20:56And now you're being part of that accountability group, being part of that family. Is that something that is of interest to you? If you can find the right franchise that you say, I can get on board with that. I can share that vision. I want to be part of this march that has already begun. Then you know, this is the type of mindset you have. Now, let's say, Jessica, that some of our listeners are interested in owning a franchise. What questions should they be asking? What are those key, most important questions to ask? Well, most important right now is, how are you helping your franchise owners navigate through this pandemic?

21:35I mean, that's the huge question today. And what would you want to hear the response be to that though? What would be some good responses that they're getting from these individuals or these franchises? Yeah, we're working to provide our owners financial relief, whether that's through royalty relief or marketing fund relief or additional marketing dollars being out in the marketplace to try to drum up additional demand for the business. we're helping owners navigate the PPP application process. I mean, I love the PPP program, but it is complex. Again, especially if you're that solopreneur and you don't have a financial understanding or a financial background, like you need somebody to really help you dissect, like, how do I apply for this?

22:31Like, what is this actually, what does this mean? And where's the opportunity to help navigate this financially? Like what other resources are out on the table? And, you know, I think one of the other important questions right now is just how many studios or locations have closed because of COVID-19. That's a hot topic. Even if your business wouldn't be open until after the pandemic, that question is still going to tell you how the organization really operates. It'll tell you how the organization sets operational priorities. During normal times, we're definitely not in a normal time right now.

23:21So during normal times, the most important question is really ask to other franchise owners. Don't ask me this question. Ask another franchise owner. And it's the typical net promoter score question. My background is marketing, so I believe in the net promoter score kind of question. How likely are you to recommend this? How likely are you to recommend being part of KickHouse or being part of another franchise that you're looking at? If you're exploring owning a franchise, talk to multiple owners and get that net promoter score figured out. So let's end our conversation today, Jessica, with a bang, because you've talked about a lot.

24:07You shared so much value for people that are considering going down this road. I mean, again, I love that analogy that we've talked about, about marching towards a common a goal that's already begun. Like, is that something that you're like, yeah, that kind of makes sense for me because I want to get going on this. I want to like already be going with momentum. What is the key takeaway? What's the one thing that you want to make sure our listeners get from everything we've talked about here today? I think it's all about finding the right people that you want to march with, that you do get to the shore.

24:40And like you said, JLD, it's like, let's get to the shore and let's burn those boats. But who do you want on that island with you? And those are choices you make as an entrepreneur. Those are choices you make. If you're a solopreneur, who's going to be that first person you get on board with you? And that's really where you can add fuel to your fire. So for kick house owners, I hope they're sitting they're thinking like, yeah, absolutely. I'm partnered with the right group. I'm on the right island. And those boats are gone, man. We're doing this. Boats are gone. We're making this happen. There is no way but forward.

25:25So let us know what's going on in your world right now, Jessica. Give us any final call to action that you have for us, any gift, anything at all. And then we'll say goodbye. Absolutely. Fire Nation, you know I'm going to hook you up. I'm not going to come chat with JLD and just leave you hanging. You can visit thekickhouse.com backslash FIRE and you'll get 10 % off your initial franchise fees. So if you've ever thought about starting a franchise business, definitely let's connect and let's talk through how that could come to life. FIRE Nation, you're the average. Of the five people you spend the most time with, you've been hanging out with JY and JLD today.

26:07So keep up that heat. And if you head over to eofire.com, type Jessica in the search bar, her show notes page will show up with everything that we talked about here today. Best show notes in the biz. And Fire Nation, your call to action, thekickhouse.com slash fire, 10 % off franchise fees just to start. And guess what? If this is the type of ship that you want to be on, or if this is the kind of boat you want burned as you're marching forward into the great beyonds, like this is something to check out. So thekickhouse.com slash fire. And Jessica, thank you for sharing your truth, your knowledge, your value with Fire Nation today.

26:43For that, we salute you and we'll catch you on the flip side. Thanks so much, JLD. Hey, Fire Nation. Today's value bomb content was brought to you by Jessica. And guess what? Successful entrepreneurs, they accomplish big goals, huge goals, which is why I created the Freedom Journal to guide you in accomplishing your number one goal in 100 days. And we're talking step by step, Fire Nation. So visit thefreedomjournal.com, use promo code podcast for a$15 discount. And thank you for listening to my podcast. And I'll catch you there, Fire Nation, or I'll catch you on the flip side. Business Made Simple, hosted by Donald Miller, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals.

27:26Business Made Simple takes the mystery out of growing your business. Join my friend Donna Miller each week as he shares value bombs on topics like the secret to making better marketing decisions. Listen to Business Made Simple wherever you get your podcasts. Is now your time? Visit Thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2 ,000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com. Thank you.