In this episode of the “Franchisor Hot Seat” podcast, Nick Powills, founder and publisher of 1851 Franchise, sat down with Stephanie Russ, vice president and general counsel at Children's Lighthouse, to discuss how her extensive background in franchising shapes the way she supports franchisees. The conversation touched on everything from navigating franchise documents to fostering a culture of integrity and collaboration within the Children’s Lighthouse brand.
Russ’ entry into the franchising world wasn’t accidental. Before law school, she spent 15 years working for large franchisors in roles that connected her to both franchisees and franchisors. This dual perspective laid the foundation for her current role at Children’s Lighthouse, where she brings legal expertise and operational insight to the table.
“I had a great mentor in the restaurant business who introduced me to franchise law attorneys,” Russ said. “It was a natural evolution from there, and I eventually joined a boutique law firm specializing in franchising.”
According to Russ, franchising is all about relationships. “There are actual franchise relationship laws, and for good reason,” she said. “Franchising is a partnership that requires open communication, mutual respect and a willingness to work through challenges together.”
This philosophy guides her approach at Children’s Lighthouse, where the leadership team emphasizes transparency and collaboration. From Discovery Days to ongoing support, the company strives to build strong connections with franchisees, making the often-intimidating Franchise Disclosure Document (FDD) process more approachable.
“Franchisees should feel comfortable asking questions,” Russ said. “A good franchisor welcomes those questions and ensures candidates come into the system with eyes wide open.”
Integrity, passion and excellence are the pillars of the Children’s Lighthouse brand. For Russ, these aren’t just words — they’re a way of doing business. “If you don’t have integrity, you can’t be here,” she said. “It’s about respecting others’ goals and supporting them every step of the way.”
Russ also highlighted the unique family dynamic of the company, led by the Brown family. “I had reservations about working for a family business, but the Browns are exceptional,” she said. “They live by the values they preach, and that creates an environment of trust and stability.”
As Children’s Lighthouse continues to evolve, Russ is excited about the brand’s commitment to innovation and growth. “We’re constantly looking for ways to elevate the brand, from improving processes to entering new markets,” she said. “It’s inspiring to work with a team that’s always striving for better.”
For prospective franchisees, Russ’s advice is simple: “Franchising is a long-term commitment. Take the time to understand what you’re getting into and look for a franchisor that truly cares about your success.”
A transcript of Powills’ interview with Russ has been provided below. It has been edited for clarity and brevity.
Nick Powills: All right, Stephanie. I like to frame who you are, and then we’ll get into the meat of the discussion. It’s such a simple question, but it usually has a great answer. So, how did you accidentally fall into franchising? What’s your franchise backstory?
Stephanie Russ: Well, I really didn’t accidentally fall into it. I worked for large franchise companies for 15 years before I went to law school. I had a really good mentor and friend who I worked with in the restaurant business, and he introduced me to some franchise law attorneys while I was still in law school. It just evolved from there through networking — it was kismet or divine intervention, whatever you want to call it. I ended up at a small, boutique law firm specializing in franchising, and it just took off from there.
Powills: When you reflect back on that pathway — and part of what I like to break down is this: If I’m a candidate out in the world, not even at a place where I’ve started looking into franchising but considering business opportunities — I have to figure out what franchising even is. If you navigate backward in your career, how long did it take you to really feel like you had a good grip on how franchising works?
Russ: You know, that’s a tough one. I could say five years, but probably closer to 10. By the time I went to law school, I had 15 years of experience and I truly felt like an expert — if there is such a thing. I always worked for large franchisors but I also worked closely with franchisees. I was typically the liaison, whether it was in operations, training or HR. I always had that connection to both sides, so I got to see both perspectives — the issues and the impact on both ends.
Powills: I was recently talking to a franchise broker and I asked what trips up franchise buyers during the process. She mentioned the big FDD document — it gets handed to them, and they’re like, “What is this?” Then they hear, “Hey, you need to sign this receipt page,” and they’re like, “I’m not signing anything!” I think that’s part of the gap. Obviously, you’ve had the benefit of seeing both sides — protecting the franchisee and the franchisor. I imagine that gives an advantage to Children’s Lighthouse, especially with how you’ve engineered the legal side of things. But it can still be intimidating for a franchisee, even though it probably shouldn’t be. What advice would you give to someone looking into franchising on how to overcome those hurdles?
Russ: The FDD is designed to be a plain-language document that explains the legal contract — the franchise agreement. These 20 items in the Franchise Disclosure Document take you through it without a lot of legal jargon. The first step is to actually try to read the FDD. I know some systems have documents so thick that, if printed, they’d be 350 pages. But the core, plain-language portion is probably only about 20 pages. If people take the time to read it, they can then ask questions.
If you’re talking to a franchisor who truly cares about their franchisees and doing the right things, they’ll want you to ask questions. They’ll be happy to answer them because they want you to come into it with your eyes wide open.
Powills: I love that advice. I was recently speaking to a group of franchise candidates who were stalled in their process. I’m not a franchise sales expert, but I got on the call and said, “Here are the hurdles you’re going to have to overcome with this brand to feel comfortable.” I told them not to buy a multi-pack right away. Start with one, make sure it works, but think with the mindset of eventually becoming a multi-unit operator. I treated them like humans and it turned a stalled-out candidate into a positive outcome.
I think that’s part of the communication process around these documents. Yes, it’s overwhelming, but when you break it down and get feedback from a franchisor who truly cares, it’s easier to move forward. At least then, you’re working with someone who isn’t just trying to sell you something.
Russ: Exactly. We want franchisees to be educated and unafraid to ask questions. The last thing we want is for someone to join the system, then immediately feel confused or think, “This isn’t what I thought it was.” Franchising is about relationships — franchise relationships. It’s even codified in franchise relationship laws. Relationships in franchising require communication, respect and mutual effort. It’s not personal, but it’s definitely a relationship, just like any other in life. Both sides need to listen, communicate and sometimes compromise.
Powills: What makes Children’s Lighthouse special?
Russ: It’s our core values — Integrity, Passion and Excellence. These aren’t just words. We live by them. Integrity, in particular, is non-negotiable here. It creates respect for others, their ideas and their goals, and it pushes us to support those goals.
We also have a unique dynamic because of the Brown family. When I first started, I never thought I’d work for a family business. But the Browns are exceptional. Their integrity, respect and consistency create stability. There’s no chaos here — no wondering what’s going to happen next. It’s a culture of trust and support.
Watch the full interview with Russ above or on YouTube to learn more about Children’s Lighthouse and why it’s one of the most exciting franchise opportunities in the market today.
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