🎙 Passive Cash Flow Podcast EP.192 | Why I’m Totally Unemployable (And Financially Free)
In this episode of the Passive Cashflow Podcast, host Aaron Fragnito sits down with franchise expert Kim Daly to explore how franchising serves as a powerful vehicle for financial freedom and professional autonomy. Moving beyond the misconception of “buying a job,” the discussion highlights how investing in proven systems allows entrepreneurs to skip the “visionary” struggle and fast-track their path to becoming “completely unemployable” and totally free. By bridging the gap between active business ownership and passive real estate investing, this conversation provides a strategic blueprint for anyone looking to stop trading time for money and start building a lasting legacy through controlled, scalable income streams.
Connect with Kim:
✉️ Kim@TheDalyCoach.com
🌐 TheDalyCoach.com
📱 (603) 828-2294 [TEXT]
🔗 in/DalyKim
📘 /CreateWealthThruFranchising
📸 @TheDalyCoach
🎥 /@TheDalyCoach
🧠 Topics Covered:
00:00 Introduction to Kim Daley and Franchising
02:14 Franchising vs. Traditional Entrepreneurship
11:49 Investment Myths: Time vs. Capital
20:17 How to Vet and Select a National Brand
28:04 Deciding When to Franchise Your Own Business
33:12 The Z Suite: Mindset for Business Success
36:59 Resources and How to Contact Kim Daley
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⚠️ Disclaimer:
This is not a solicitation for funds, tax advice, or legal advice. This is not intended to be, and must not be construed to be in any form or manner a solicitation of investment funds or a securities offering. Peoples Capital Group LLC is NOT a United States Securities Dealer or Broker nor U. S. Investment Adviser is a Consultant/service provider and makes no warranties or representations as to the listener or viewer. All due diligence is the responsibility of the investor.
Transcript:
00:00:00:00 – 00:00:05:00
Unknown
franchising has made me completely unemployable and totally financially free.
00:00:05:02 – 00:00:09:13
Unknown
Nobody really wakes up and goes, oh yeah, Aaron, my dream is to be in franchising, but
00:00:09:13 – 00:00:13:03
Unknown
you know, we find ourselves at some point in our lives where we’re looking for,
00:00:13:03 – 00:00:14:14
Unknown
a solution to a problem,
00:00:14:16 – 00:00:20:21
Unknown
and we want autonomy and control and maybe more passion and build income that we own and control.
00:00:20:21 – 00:00:22:01
Unknown
And that was my story.
00:00:22:03 – 00:00:27:10
Unknown
when is the right time to franchise? And how do you know if you have a franchise, a business?
00:00:27:12 – 00:00:39:02
Unknown
So basically what you’re doing when you invest in a franchise is you don’t have to come to the table as a visionary with an idea and try to spend 3 to 5 years and thousands of dollars and time, energy and hustle trying to figure it all out.
00:00:39:02 – 00:00:41:06
Unknown
Which is why entrepreneurship, sports,
00:00:41:12 – 00:00:48:04
Unknown
right? Because they’re trying to figure out how to make money part doesn’t make us money. It’s the execution once we’ve created the operation.
00:00:48:06 – 00:00:52:09
Unknown
in that same 3 to 5 years, the entrepreneur is still trying to figure out how to make money.
00:00:52:11 – 00:00:58:08
Unknown
We can not only be making money, but we can be building and scaling our wealth
00:00:58:10 – 00:01:12:11
Unknown
All right, ladies and gentlemen, it’s Aaron Magneto. Back with the Passive Cash Flow podcast. We have an interesting guest today. We have Kim Daley. How are we doing today, Kim? I’m doing great. Aaron. It’s a pleasure to be here.
00:01:12:15 – 00:01:18:19
Unknown
Thank you so much for coming on the show here. You’re a franchise expert, a business coach and motivational speaker.
00:01:18:24 – 00:01:21:05
Unknown
You know, I want to have you on the show because,
00:01:21:11 – 00:01:33:01
Unknown
I was talking with my business partner yesterday. Like, he’s kind of dreaming about. What would you do? Like, in the future? We exit a bunch of assets, debt, and, you know, we’re trying to slow down in life years from now. I’m like, you know what I do?
00:01:33:01 – 00:01:48:24
Unknown
I buy a franchise because I know how hard it is to start a business from scratch. And I know how important brands are. You know what I’m looking for? You know, a cup of coffee. Like, I usually go to, like, the Dunkin Donuts at the Starbucks is. I like the brand. I’m a brand. I’m a millennial. So I really enjoy brands.
00:01:48:24 – 00:02:00:07
Unknown
I really enjoy franchises. And I want to have you on the show here to learn about the process of like, franchising, maybe some hot franchises now and, you just kind of dig into the franchising space. How’s that sound?
00:02:00:11 – 00:02:14:00
Unknown
I love it, and former entrepreneurs are the easiest people to convince of the value of a franchise, because once you build the business from scratch, once in your life, you’re like, I’m addicted to business ownership, but I don’t ever want to do that again.
00:02:14:02 – 00:02:30:12
Unknown
Absolutely, absolutely. And by the way, to our listeners, if you’re enjoying our content here, be sure to like and subscribe and share this with a friend. We have new guests on the show every two weeks, and we help people learn how to passively build and preserve their wealth in many different ways. Just, real estate mainly, but outside of real estate as well.
00:02:30:12 – 00:03:01:03
Unknown
So today we’re going to focus more on the business side. So, Kim, let’s just talk about here. How did you get started in the space of franchising and working with franchisees? So it’s a great question. Nobody really wakes up and goes, oh yeah, Aaron, my dream is to be in franchising, but to the point you were just making, you know, we find ourselves at some point in our lives where we’re looking for, a solution to a problem, and we want autonomy and control and maybe more passion and build income that we own and control.
00:03:01:03 – 00:03:18:11
Unknown
And that was my story. I I’ve never worked for somebody else. I became an entrepreneur almost right out of college. And, when I was 25 years old, I started my first company. And I’ve never looked back. I’ve been self-employed for 27 years, so you can figure out how old I am. But I’ve been involved in franchising for the last 23 years.
00:03:18:11 – 00:03:45:11
Unknown
So five years as an entrepreneur and 23 years as a franchise. Preneur to your point about passive cash flow, I am, franchising has made me completely unemployable and totally financially free. I have an alternative investing portfolio where I have, you know, the passive cash flow from my businesses. But I also have, overflow cash flow that I put into diversified, passive investments and have that income coming in that retired me.
00:03:45:11 – 00:04:09:23
Unknown
So I love a real estate show because I understand your people. And a lot of times we get, net worth heavy in cash flow poor. And that’s exactly where a good franchise could meet you and help you build that cash return. So going back to my story, I started as an entrepreneur. I was traveling a lot. It was in the.com bubble.
00:04:10:00 – 00:04:31:00
Unknown
I was very successful, but I was very unrooted and I was 29. Turning 3911 happened. I’m a little older than you. And and so I was like, gosh, I want to get back to New Hampshire in my family, but what the heck am I going to do there? And I started reaching out and I, you know, found some friends who were involved in this thing called franchise consulting.
00:04:31:02 – 00:04:58:01
Unknown
And I was like, that could be interesting. I really knew nothing about franchising, but I was like, that sounds like kind of a fun business. And I just had no idea that when I said yes to that, I was answering the call to the whole purpose of my life and finding the greatest passion and joy. And over the last 23 years, Erin and I went from eight years as an average performer in my franchise to the last 13 years, a history maker legend, breaking my own historic records over and over and over.
00:04:58:01 – 00:05:25:22
Unknown
And so that’s the mindset. Coaching that I now offer as a separate entity aside from consulting. So people come into my world, help me change my life. I’m at a crossroad. I want to build cash flow into my alternative portfolio. We start there, we get you the business, and that’s the strategy. But then it’s the mindset that you apply to that strategy that really sets you financially free, right, mentally and gives you the satisfaction along with the wealth, the riches.
00:05:25:22 – 00:05:55:06
Unknown
So that’s where I come in and I can meet you on both sides, right? Right. That’s interesting. I like that, I like that. Okay, great. So I see your passion for this space, which is incredible. And, how you help people, you know, be successful in the space of franchising. So, you know, let’s, kind of get into it here, you know, I guess, you know, without making too obvious a question, why would someone franchise mean you have to pay generally a fee up front?
00:05:55:06 – 00:06:10:10
Unknown
You have to pay a percentage of sales, often like gross revenue to a, the head of the parent company. There’s rules and restrictions on what you can and can’t do. And, your advertisements and you kind of have a big brother looking over you,
00:06:10:16 – 00:06:17:20
Unknown
and, so, so why would someone get into a franchise? I mean, with that set up, I think I know like that right now.
00:06:17:22 – 00:06:45:24
Unknown
I was right, like, I’m just kidding. I love it here from scratch. 15 I have 1500 videos on YouTube. I give daily TV talking about all those very subjects. I’m over here making faces if you’re not watching the video, but. So yeah, why would you ever do this? It’s so onerous. Okay, so let’s lighten it up. So basically what you’re doing when you invest in a franchise is you don’t have to come to the table as a visionary with an idea and try to spend 3 to 5 years and thousands of dollars and time, energy and hustle trying to figure it all out.
00:06:45:24 – 00:07:11:20
Unknown
Which is why entrepreneurship, sports, right? Because they’re trying to figure out how to make money part doesn’t make us money. It’s the execution once we’ve created the operation. So in this formula, a franchising, you’re bypassing all that. You pay a one time fee called a franchise fee. Give me access, baby. Proven business plan, initial training, vendors, technology, all the things so I can turn the key and I can start executing and creating an outcome.
00:07:11:23 – 00:07:37:04
Unknown
Now, those ongoing fees that you’re giving back to the franchise, or for the perpetuation of the brand. So when you’re an entrepreneur and you invest in your business and you spend 3 to 5 years trying to iron it out and try to get it profitable with a franchise preneur in those same 3 to 5 years, with the right financial capability and the right empire building mentality that owner can build and own and operate 3 to 5 locations.
00:07:37:06 – 00:08:13:19
Unknown
So in both entrepreneurship and franchise partnership, wealth is created through scale, just like in real estate, right? It’s not about one roof top. How do I leverage myself across multiple rooftops? Right. It’s always going to be the same. So so franchising was designed for scale. Whether it’s scaling out a territory with multiple vehicles or a fleet of vehicles or a team of people, or whether it’s scaling individual locations, right, to build that portfolio of three locations or five locations, but with the right franchise system and the right investor in that same 3 to 5 years, the entrepreneur is still trying to figure out how to make money.
00:08:13:21 – 00:08:34:11
Unknown
We can not only be making money, but we can be building and scaling our wealth and then buying back our time because we’re starting with all the leverage of systems and tools and potentially a brand. If you’re buying into a more established brand, you have that leg up. So owners come in working on it with the general manager and the team working in it in an entrepreneurship role.
00:08:34:11 – 00:08:58:14
Unknown
You’ll never do that. You will be in it forever because you don’t have a brand right? Until you build that reputation in the community and until you then can entrust what you built to other people if you get that far. But how many entrepreneurs ever really do? The failure rate over there is so high because people typically run out of money or time, energy and tears before they get to the profitability point.
00:08:58:16 – 00:09:18:20
Unknown
But over here in franchise Preneur ship, those failure statistics are not known in our industry. In fact, they’re kind of the opposite ones. So there’s a lot more wealth building that can go on in a shorter amount of time. I’ve taken Harvard MBAs who came to me with all the same, like limiting beliefs, and now it’s like they’re like the greatest disciples of franchising.
00:09:18:20 – 00:09:37:21
Unknown
One of them writes for Harvard Business Review about how franchising changed his life, and then he generates leads for him daily. So it’s really this limiting belief, we think at franchising is Jersey Mike’s and Chick fil A. We don’t want to be in food. We don’t want big brick and mortar. And then you come to someone like me and I say, no, no, no, we don’t have to talk about that.
00:09:38:02 – 00:09:59:02
Unknown
We don’t have to talk about brick and mortar and people like what? There’s franchises where you don’t have brick and mortar. Yeah, where they’re lower investments and you can make way more money. There’s franchises in, you know, garbage removal. There’s franchises in painting, parking lots. There’s franchises in like so many industries as a general consumer, you would never know exists, right?
00:09:59:05 – 00:10:19:13
Unknown
That’s why you come to someone like me and I’m going to help, you know, really enrich your mind with ideas that match the owner. You want to be the investor profile. You have, the returns you want to build, the scale you want in there. And I also, because I’ve been doing it for 23 years and franchising is a relationship, right?
00:10:19:13 – 00:10:51:12
Unknown
So the other idea to your owner is question is you’re not out there on an island, right? This is about buying people. It’s about buying a partnership. So as you’re paying those royalty dollars, you’re paying for that ongoing continuation of the brand. When we end up in a pandemic, you don’t get in the fetal position and die. You have a collective community of people who are all trying to solve the problem of how do we open and open safely when we end up at a presidential election or recession, or things that can throw business off seasonality, right?
00:10:51:14 – 00:11:14:02
Unknown
Or a vendor whose products can’t be shipped here anymore due to tariffs. So now we need to pivot. These things happen in business every day. And the challenge doesn’t have to be met by just you. Right where it takes you down. It sets you back collectively in a franchise. Everybody’s working together. That’s you and all the other franchisees with the franchisor.
00:11:14:05 – 00:11:31:21
Unknown
So that ongoing royalty you’re giving is for the continuation of the growth of the brand. Yes. It’s also how franchisors make money, and we want them to make money. It takes money to build a brand. We need them to have money. Where do they get that money? They get it from us, right? They help us make money. They make money.
00:11:31:23 – 00:11:49:24
Unknown
But it’s also for the perpetuation of the brand. So I said a lot there. I’ll stop talking. Okay. Okay. Very interesting. So let’s go through a case study. I’ll stop with my penetrating questions here. I’ll give you a more easy one. Well, maybe we’ll be. We’ll see. And, Okay. So let let’s use me as a case study, all right?
00:11:49:24 – 00:12:10:17
Unknown
I own a real estate investment company. I’m pretty darn busy. I have a four year old son. You know, I like to volunteer my church on Sundays, so I just have a lot on my plate, but, And I do like the idea of owning a franchise, but I want to do, like, limited work. Like, to me, time is extremely valuable.
00:12:10:19 – 00:12:35:11
Unknown
At the same time, the whole like up front, I’ve been doing business enough and been pitched by enough marketing companies that to me like a large upfront cost, is far more, intimidating and unattractive than more of a larger long term franchise to me. Because if I’m crushing it, I’m making money. I don’t really mind paying that fee, but that like I’ve been taken by so many man marketing company, like, give me 25 grand, I’ll solve your problems, you know?
00:12:35:13 – 00:13:04:12
Unknown
So. So that’s what I’m looking for. I’m looking for a franchise with, limited investment of time. Okay. Very limited as much as possible. Limited investment of capital as well. And ideally, something more recession resilient, you know that, because I’ve also been through 2008, 2009 recession and real estate. I saw the pandemic, you know, so I know like every few years it kind of hits the fan.
00:13:04:12 – 00:13:22:04
Unknown
So you got to be ready for that. You know, I, I’ve always like the idea of owning, like, a laundry mat or something like that. I do like the College hunks hauling junk guys, whatnot. They franchise like that because I’ve also used those services, you know, for my business. We’ll buy a fixer upper, we’ll call those guys, and they’ll hall the junk out.
00:13:22:09 – 00:13:49:02
Unknown
But I also know, like, the staffing of that is extremely hard to keep. Keep college hunks around hauling your junk like those college hunks are going to graduate and go elsewhere. So, anyway, what what maybe are some suggestions you might have for a, a man in my situation? Okay, so, Erin, I invite you into a full consultation, which I’m not going to get into the nitty gritty of all that, but for the listener, I want you to understand this is where I meet people every single day.
00:13:49:04 – 00:14:10:23
Unknown
So there’s a lot of limiting beliefs. No offense. I’m just challenging your thought process with everything you just said there. But that’s where like I come in as an experienced franchise consultant to ask the pointed questions with curiosity, no judgment to see where you go. Am I going to hit a brick wall or can I stretch you? So there’s no such thing as a low investment of time and a low investment of money.
00:14:10:23 – 00:14:36:20
Unknown
So that’s myth number one. The lower the investment of time by an owner, the higher the investment must be. And here’s why. A low investment of money implies almost a pure sales option. Home based investment. Not a lot of stuff. You’re buying intellectual property from the franchise, or how to go out into the business, out into the business community and sell well, that’s never going to be run by somebody other than you out of the gate.
00:14:36:22 – 00:15:03:17
Unknown
Yeah, right. Over time, you could build a sales team, but nobody’s going to go hustle that thing like you are so low investment of money always implies big investment of owner time commitment. Now you mentioned a laundromat so we’re going to flip. It’s a big capital investment. The location the washers and dryers are doing the work for you can imply not always, but can imply a lower investment of time by owner.
00:15:03:19 – 00:15:25:00
Unknown
Yeah. Why? Because you have stuff, but you have to build it, and that’s $1 million investment. So you also said something about the higher franchise fee. That’s a myth. Whether it’s a McDonald’s or an emerging franchise or the franchise fee has nothing to do with the cost of building the franchise. The franchise fee is to cover the cost of recruiting you.
00:15:25:02 – 00:15:49:16
Unknown
My fee comes out of that. Those franchise development teams going to trade shows. So franchise fees are not how good franchise laws are making money. In fact, it’s a red flag to me. If the franchise owner is making money off of a franchise fee, the franchise owner is in it for the long term annuity the royalty, the 6 to 8% of your gross sales, not the upfront $50,000 fee, by the way, it’s not 25.
00:15:49:18 – 00:16:16:10
Unknown
The cost of recruiting you is very expensive. So most franchise fees, by the time you give them that money, that money’s already been spent. All right. To recruit you into their franchise. Yeah, yeah. So the franchise fee is the placement fee more than anything else. Now we have the buildout costs and then we have marketing costs. So if you want a lower time commitment, number one, you have to be an owner who has great leadership skill.
00:16:16:10 – 00:16:32:03
Unknown
Because if you’re not in it, somebody has to be. This isn’t a passive piece of investment, like the land that I own over here at the beach. Right. Like I put the money to do it. I don’t have to do anything. And just building equity, a business needs a leader doesn’t mean full time. All right? That’s the key difference.
00:16:32:03 – 00:16:56:02
Unknown
So when I’m speaking to passive cash flow audiences, that’s the number one thing I want you to hear. You can have a full time general manager and come in as an executive owner who’s only putting in maybe 10 to 15 hours upfront, but you have to have the leadership skill and the business acumen and the ability to empower people with your money and not micromanage it.
00:16:56:02 – 00:17:16:24
Unknown
Can you do that? I don’t know, only you get from here that out right. And a lot of times it’s through the discovery process that people really figure that out by validating with other executive owners who are building it. And then people hear like, okay, that’s how they’re doing it, or, well, that’s where the challenges and that’s how you sort of figure out, do I or don’t I have enough time?
00:17:17:05 – 00:17:36:09
Unknown
The last thing I’ll say is, you know, if you’re willing to give a little bit upfront for the first three years or so, you’re going to have a lot more opportunity and you don’t have to go in at $1 million. There’s a lot of options in the 100 to $500,000 ish range. And that’s not all cash out of your pocket, right?
00:17:36:12 – 00:17:59:18
Unknown
That could be the build out a construction loan from an SBA loan with some working capital, and the first 20 or 30% cash injected by you. And if you’re investing in a business that comes with, like, let’s say you’re investing in a yoga studio and you’re able to start selling membership during the construction. Now, I’d be leaning into the franchise order to understand pre grand opening membership drive.
00:17:59:24 – 00:18:25:13
Unknown
So typically if I’m on if I’m average how much cash flow in my opening with right. That’s the key driver because nobody wants to walk into a business with $20,000 a month in fixed costs and no revenue. Right. But if you can walk into a business where the average person is coming in at $15,000, revenue from the first day that you take the keys from the landlord because you had pre grand opening sale success.
00:18:25:15 – 00:18:51:16
Unknown
All right. Then, that $300,000 investment, the $20,000 a month overhead, all of that starts to get minimized. The risk is like okay I see how this could work. So it really requires curiosity coming to someone like me who can help you stretch your thinking, not judging you. And if you’re like Kim, this is a hard no. Okay, I’m going to bring you the facts.
00:18:51:16 – 00:19:13:05
Unknown
I’m going to try to meet you where you are, but also help you to broaden so I can twist a wider net around options. You might not even know exist. Right? Right. Yeah. And coach you through that mind’s the process so you don’t just go, nope, this isn’t going to work, but you can discover by talking to specific franchisors what the answers are.
00:19:13:08 – 00:19:28:24
Unknown
Because sometimes, Erin, the answer right now is it’s no. For now. I’m super intrigued. I’m going to call you back in a year, you know, hey, you know, we just had a baby. I think we just need a little bit more stability under us or, you know, like. Or. Hey, no, I just lost my job, and I’m doing it.
00:19:28:24 – 00:19:50:06
Unknown
I mean, I’ve had people in the middle of moves start a business. I’ve had people who just had a baby, and I’m like, sure you want to do this now when people are ready, man. And like, they move mountains to to just do it because they know it takes time and the longer you wait to start, then the longer you’re waiting to get to, you know, a profitable point.
00:19:50:08 – 00:20:13:06
Unknown
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00:20:13:10 – 00:20:17:20
Unknown
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00:20:17:22 – 00:20:45:12
Unknown
Yeah. Okay. Okay. Yeah. I would go with the higher investment upfront and lower investment of time. That would be like maybe to have a big liquidity event from a real estate investment and, you know, be looking for something like that. So that’s the you so you kind of you do a long consultation, you go through a whole laundry list of things, and then you basically are going to come up with, a few suggestions of actual franchises that could be a fit for that individual.
00:20:45:12 – 00:21:12:19
Unknown
Is that how that works? 100%. So out of the 3 or 4000 options out there, here’s an interesting statistic. 97% of all franchise franchises out there will never get to 100 units. So a hundred units is the stabilizing point of a franchise, but 100 units is not where we know it as consumers, as a national brand, most franchises need about 500 units before we start waking up and go, oh, what is this thing?
00:21:12:19 – 00:21:33:19
Unknown
I’m seeing it everywhere, right? So think about that. The equity play of your money. If you’re investing in a franchise, you want a national brand. You set it up front. You want it to at least be on the growth trajectory. Because when you go to sell a Planet Fitness, you may be able to get eight times your EBITDA because of the name Planet Fitness.
00:21:33:19 – 00:21:51:10
Unknown
When you go to sell Kim’s $10 Fitness, I’m not getting eight e, but I might only get a one. But all right, if anybody’s worth anything at all. So that resale value, which all businesses should be built to be sold, right. If you have millions of dollars in equity in this business and someone is willing to pay it, why wouldn’t you exit it?
00:21:51:12 – 00:22:13:20
Unknown
Yeah. So you had that exit value. And so you want to be partnered with the right franchisor who has the money and the business acumen and experience to be able to take this small emerging franchise. If you’re investing at the lower end and grow it into the next big American franchise brand. So I play in the 3%, not in the 90%.
00:22:13:20 – 00:22:35:07
Unknown
So I’ve got a couple hundred options in my inventory. But, I mean, I place more people into franchising than any consultant out there that can be validated by any franchisor. Like I am blessed. I have a massive business, and I probably play with the same 80 to 100 companies and I have at any one time, 40, 50, 60 people looking at companies.
00:22:35:07 – 00:22:54:08
Unknown
So, people think, oh, I’m very limited if I work with you, Kim Daly I’m like, well, you can look at it that way, or you can look at it like you’re protected and your time is maximized with the highest caliber of franchises out there, because the vast majority of people out there are definitely not worth your hard earned life savings, not where they are right now.
00:22:54:08 – 00:23:14:08
Unknown
I won’t say that’s a true statement forever. They may grow and mature and prove it, but why should you? Their learning curve when you’re investing in something that should be proven right? Right? Yeah. You do see franchises like Brand New. They have like 1 or 2 like, parent stores and you’re like, now we’re franchising. Like, well, wait a minute, I really yeah.
00:23:14:10 – 00:23:33:10
Unknown
I mean, they’re really making their money from, you know, some age actually. Yeah. So so that that’s interesting. So you, you vet the franchises, you make sure they’re not going into it because that’s kind of everyone’s worst nightmare. You pay that 50,000 hundred thousand dollars upfront and you get everything and you’re like, wait a minute, this is this doesn’t happen in my world.
00:23:33:10 – 00:23:54:22
Unknown
I mean, in 23 years, sure. We’ve had a couple of franchise wars go bust, but the vast I mean, our track record is like 99.5%, if you will, like, of the companies we’ve worked with and over 23 years, 25 years that we’ve been a company have gone on to become the next big American brands in all industries. So our track record is very strong.
00:23:54:22 – 00:24:15:16
Unknown
So what I do as a consultant is part of a franchise like company called Free Choice. So my team behind me, they go out and they vet the franchise doors. So my full time business is to find people who want to explore a franchise and have this conversation with me. It’s not to find people who want to buy a franchise, it’s to find people who are open and want to explore.
00:24:15:19 – 00:24:30:18
Unknown
That’s how I look at what I do. There’s zero pressure. It’s totally free. You don’t pay me. I’m paid by those franchise doors like a recruiter. So we’re just going to get together, build a model of your dream future 3 to 5 years. What does it look like? What do you make? And what are you doing? What are you not doing?
00:24:30:18 – 00:24:56:17
Unknown
Are you travel and you own a second home? Like, what are all the things? Because we’re not buying a franchise to buy a franchise, buying a franchise to create outcomes. Right. So what are the outcomes? That’s where I start the conversation. I want to know your goals and dreams. I want to get your spouse involved, your kids. If you have teenagers, like, we got to get the buy in of everybody, because the more you’re bought in emotionally to what this business can do for you, what happens is you lose focus of it has to be the gym.
00:24:56:17 – 00:25:18:07
Unknown
Because I love the game, right? Right, right. Now the reason to invest. This isn’t a hobby. It’s not a passion. You’re not buying yourself a job, right? You are buying a business that’s going to drive you personally, professionally and financially. So let’s just find the most efficient vehicle to take you on that ride. That’s ultimately what makes you happy.
00:25:18:09 – 00:25:38:21
Unknown
Yeah. Not buying the hobby. Yeah, yeah I said yeah okay. That’s that’s interesting to know. So you’re you don’t charge like an upfront fee or anything like that or you know, that’s that’s really so really people have nothing to lose by scheduling an appointment with you. And, learning what we know, what could be possible with franchising, what options might be a fit for them.
00:25:38:21 – 00:25:55:11
Unknown
That’s interesting. I might even take you up on that myself. I’d be curious. Let’s have some fun. Yeah, it’s like a big playground. We just, like, have some fun. We dream together. We? Yeah, we design ideas. When you get a little, like, up against yourself with some limiting believe, I’m going to try to, you know, can I stretch you?
00:25:55:11 – 00:26:13:17
Unknown
That’s my nice way of saying. Can I bump you a little bit on that one and see what happens? And, you know, like, for example, I’m working with two women and they wanted a closet business and they made some offhand, you know, comment that, oh, California closets is obscene. And I said, oh, really? You think California Closets has an obscene pricing?
00:26:13:22 – 00:26:38:14
Unknown
Okay, well, did you know there are billion dollar franchise? And then they were like, no, I’m like, okay, there they do. They’re $1 billion franchise or so it could be that their customer demographic. And then I led them down the path. So in California closets, they’re not catering to Macy’s America or Walmart America. They’re catering to upper class Americans who live in two, three, 4 or 5, $10 million homes.
00:26:38:19 – 00:26:57:21
Unknown
But we’re not going to put a Walmart quality organ. So when I led them down the path, I was watching over zoom and I saw the light bulbs go off in their head and they were like, oh. So now, instead of doing 400 closets a year at X price, we can do 150 closets a year at three X price.
00:26:57:23 – 00:27:19:14
Unknown
Yeah. So you can put I mean, I have options in the lower closet. But once I framed the, the way that they think about it, they were like, no, no, no, no, let’s work smarter rather than or I’m like, yes, but there you go understanding and I listen, I’ve been doing this for 23 years, so I know how to help you move past what I would get stuck on to.
00:27:19:15 – 00:27:42:18
Unknown
I’m not judging anybody, but. And then sometimes when I massage the conversation, people don’t budge. That’s perfectly okay, but just shows me that’s a hard line. And I’m like, okay, then you’re not catering to Nordstrom or Upper America. We’re going to play in the Macy’s Target America, and there’s plenty of options in every franchise category. Aaron you know there’s your Planet Fitness $10 a month and there’s your Lifetime Fitness $200 a month right.
00:27:42:21 – 00:28:04:17
Unknown
Yeah. Lucky 200 could be more right. And like Supercuts versus Aveda, like in every industry, there’s a, a value and there’s a premium brand and they both provide value. But you as the investor, get to tell me this is where I’m most comfortable playing. Right. Makes sense okay. Now let’s flip it a little bit here.
00:28:04:17 – 00:28:20:11
Unknown
Let’s talk about if you are a business owner when is the right time. The franchise you know, what do you have a model that could because that’s kind of like in a way every I think a lot of business owners dreams, you know, the idea just kind of go out and sell your brand. Here’s the blueprint.
00:28:20:13 – 00:28:35:18
Unknown
Here’s the thing I worked so hard on creating took 20 years to do it. I have a number of shops that are proven it’s already a good model, and now you go do the work and give me some nice royalties, and I hire some people to sell it and go to some trade shows. And, I’ll team up with Kim, Daly.
00:28:35:18 – 00:28:55:10
Unknown
And get on her list, and, like, bada bing, bada boom. As we say here in Jersey, I got, you know, 100 different shops. Pay me a nice 6% royalty a year, and, I could sit back and and take it easy, you know? And, so when is the right time to franchise? And how do you know if you have a franchise, a business?
00:28:55:12 – 00:29:13:18
Unknown
Okay, so there’s a lot to unpack there. Now you’re going to think I’m talking out of both sides of my mouth. So if you came to me and you’re like, Kim, I think I want to franchise my business. Okay. So I’m going to say, okay, so let me ask you a question. You have to sit and really internalize what is your motivation for becoming a franchisor, because this is what you’re doing.
00:29:13:20 – 00:29:37:11
Unknown
You’re asking the average American who’s never owned a business before to spend or invest their life savings. In your dream, they’re kind of like teenagers, Aaron, which you might not have yet, but I have two of them. Yeah, yeah. No matter what you do, it’s never right. They’re cringing at you all over the place. When it’s going good, you never hear a beep.
00:29:37:11 – 00:29:55:20
Unknown
And when it’s going wrong, it’s all your fault. Yeah. So investing money makes us all crazy, right? It’s the biggest fear most people have. And it’s. You know why? All my mindset coaching is centered mostly around money. Because money is why we do it. Money is why we stay on the sideline. Money is what makes us feel empowered.
00:29:55:20 – 00:30:13:17
Unknown
Money is what makes us feel frustrated and want to quit. It’s all always about money. Yeah. So when you are the franchise or you have to internalize that all of the people that you’re awarding a franchise to are putting the majority of their life savings in you. Do you want to wake up and do that? So I would be like, really?
00:30:13:17 – 00:30:37:21
Unknown
You want to grow your business? If that’s your goal, just go build some corporate stores. Some people like, but don’t your whole franchises grow like, why do you say that? I’m like, well, if your motivation is really to help young investors. Yeah, build and create and take your idea and flush it out market by market and you’re not in it for the money, because if you’re in it for the money, you’re never going to make money.
00:30:37:23 – 00:31:03:21
Unknown
Because like I said, only 3% go on and do anything historic that other 97% are failing and losing money like every other. Start a business. So you need experienced leadership or a consulting team with experience leadership in building and supporting your franchise organization. You need billions of dollars because you’re not going to become royalty stream like, even to your expenses for probably 5 to 8 years if you’re lucky enough to get there.
00:31:04:02 – 00:31:26:16
Unknown
So how are you going to fund this in the meantime? So everybody thinks it sounds like a great idea, but being a franchisor is the biggest responsibility you could ever take on in business, in my opinion. And it’s the hardest job. It’s the hardest culture to control more than even in corporate America, because people’s biggest fears are being confronted when they invest their life savings.
00:31:26:19 – 00:31:49:19
Unknown
So you could be giving them the most proven track record with the strongest operation. But their limiting beliefs and scarce thoughts about money impact how they execute. With that proven track. Proven right. And so then their result doesn’t equal your result and they are scratching their head. This is why I’m a mindset coach, because the universe is not giving us what we know.
00:31:49:21 – 00:32:20:13
Unknown
It’s not responding to our effort. The universe responds to who we’re being behind the effort, the abundant attitude or the scarce attitude. That’s what we create from. This is why I’ve launched a whole new company called the Z suite, because I’ve been in around this industry now for 23 years, and I see these amazing franchisors with all this great strategy and technology and tools and the average person struggling, failing, you know, quitting, not living the dream, not making the kind of money they thought doesn’t have to be that way.
00:32:20:15 – 00:32:47:00
Unknown
And it’s because strategy, just like a college degree, doesn’t guarantee success. Yeah. What you do, it’s the mindset you bring in. It’s not a positive attitude. This is physics. I’m talking about the natural laws that govern the universe. So in the Z suite it’s like I always say it’s Einstein meets Jesus. It’s physics meets faith. Right. Turns out Jesus and Einstein were saying the same thing just using two completely different words.
00:32:47:02 – 00:33:10:22
Unknown
So this is what I teach people so they can really own it. If you’re not willing to own it, you’ll never really own your business. But when you’re willing to own it fully, then you have something you can really control. And this is what I’ve learned. I mean, I again, I’ve made legendary success as a franchise consultant and and really built a life beyond my wildest imagination, figuring all this out as I went.
00:33:10:24 – 00:33:32:12
Unknown
And now it’s like, I don’t it’s like I have some, like, cheat code to success, and you can’t just, like, hold it. You gotta like, give it to other people. Right? So that was my motivation for starting the Z suite. It’s strategy plus mindset. Okay. Excellent. So the Z suite is helps franchisees with their challenges with running the business and so on.
00:33:32:12 – 00:33:55:21
Unknown
And having the right mindset and kind of the tools to assist in that process. Anybody in franchising I have franchisees or as students because franchise owners that lead from a mindset where they’re building a culture and they’re building a belief, not selling a strategy. Those are the next big American Chick-Fil-A brands, franchise owners that are transacting because they thought they were going to get rich from royalties.
00:33:55:23 – 00:34:15:13
Unknown
Those are the ones that are failing. So once they’ve invested the money and they’re in it and they wake up and go, oh my gosh, I got to do this better come to the C-suite and let’s help you with that nuanced mindset where you can lead, you can create a belief in a movement in a certain community to suit certain industry based on your differentiators.
00:34:15:15 – 00:34:33:17
Unknown
And when you lead and you you attract franchisees from that belief, and then it trickles down. So then franchisees come and it’s the same thing. You’re going to build a belief in your team. So to your beliefs about it’s hard to find people. That’s a that’s a limiting belief that most people carry. Why? Because they hated working for other people.
00:34:33:17 – 00:34:58:11
Unknown
So they believe everybody hates working for people. But in my world, where I love what I do every day, I believe I can attract any great employee and they will bring more great employees to me because that’s the experience I come from. So it’s all a mindset shift that, but it starts with you. So whether you’re the franchise or you’re trying to build it in a franchise organization or you’re a franchisee and you’re trying to build it in your own organization.
00:34:58:14 – 00:35:25:03
Unknown
So exact same process. So the Z suite, which is z e, by the way, supports the entire industry in a movement away from just strategy. So how how are we being with that strategy. Are we thinking from lack or are we thinking from possibility. How do you think from possibility? Kim when the world is showing me something that feels impossible, come and let me help you.
00:35:25:05 – 00:35:51:01
Unknown
Once you once you get there, it’s like so freeing. It really is the effortless way. It’s like. It’s like when you see somebody, you’re like, wow, they’re so lucky. You know? Doors just magically open for them are, wow, they landed that really great referral source. No, it’s not luck. It’s who they’re being and what they’re giving out in a frequency that then by the law of attraction, the law of vibration, it it magnet brings it right back to them.
00:35:51:03 – 00:36:10:18
Unknown
So if you’re waking up every day in your business and you’re frustrated and you’re scared and you’re nervous, which everybody is, because money isn’t on the line here, right? And we have a scarce feeling about time and how quickly we have to do it. So but you can’t create abundance from lack, never even in your real estate portfolio.
00:36:10:18 – 00:36:36:04
Unknown
You can’t create abundance from lack there too. It’s like playing 103 and hoping to listen to 99.7. Yeah, you can’t get to tune it to the frequency of the radio station you want, and that’s when you’ll hear the music and the same thing, but nobody in franchising and a lot of people, even in the world, don’t even understand the physics and how it all works.
00:36:36:06 – 00:36:59:01
Unknown
I’ll help you high. Awesome. Kim. So how can people, reach out to you, learn more about your, services here? Well, the best place to go, Aaron, is to my main website, the Daily coach.com de Y. You can learn about franchise consulting and my free consulting services. More about the Z suite. I have thousands of reviews and thousands of videos on YouTube.
00:36:59:01 – 00:37:23:02
Unknown
I have a podcast of my own where I interview top performing franchisees. So all kinds of free resources to really help you learn and then take the first step when you’re ready to reach out. And that’s dle y no, I in there. It’s not Dolly, ladies and gentlemen. It’s not Dolly, as I first thought I told you. And you can call me Dolly if you’re fancy, but I prefer daily.
00:37:23:04 – 00:37:45:17
Unknown
All right. Excellent, excellent. Malcolm, thank you so much for coming on the show. You’ve been a very energetic guest and enlightening guest, and I am curious to learn, more about your services, obviously, of a, you know, a depth of knowledge in this space. And, I’ve learned a lot myself just from this podcast app. So those are my favorite, podcast episodes where I learn from the guests, you know, and they’re not always like that.
00:37:45:17 – 00:38:08:19
Unknown
So excellent. Excellent information here. And, you know, to our listeners here on the passive cash Flow podcast, hopefully you’re gaining value from our episodes and our guests here. And if you are hit that like and subscribe button, share this with a friends colleague who you think is, potentially good, franchise, franchisee, or someone that’s just curious about it or maybe a buddy of yours.
00:38:08:19 – 00:38:31:09
Unknown
You’re like, hey, we we should start. You know, we talked about starting a franchise. Yeah, we got to do that. So, share that with that colleague, that friend of yours, and, connect with Kim here. Kim Daily Dal y. Just. No, I in there. No, I to clarify and of course, if you want to learn more about, passive real estate investing over here, People’s Capital Group, you can go to People’s Capital group.com.
00:38:31:11 – 00:38:52:17
Unknown
See our projects that we’re working on. We have over 100 investor, we investors, we’ve completed about 280 transactions here in northern new Jersey with our in-house management company and all of our passive investors, about 5000 investors, our network here. So we actually have an event coming up in October. We then we of course, we have our client, appreciation party in November.
00:38:52:17 – 00:39:08:15
Unknown
You got to be a client. You got to be investor to come to that fund dinner. And then we’ll have our general networking event in January and our monthly, masterclasses that we do as well. We just did one last night, actually. But, thank you so much, Kim, for coming on the show. We’re glad to have you here.
00:39:08:17 – 00:39:09:18
Unknown
Thank you so much.
