Guide To Franchising Your Business: Q&A With Ty McBride, CEO of Preservan

Ty McBride, co-founder and CEO of Preservan, decided to franchise the business with a clear vision of local ownership driving growth. Initially operating as a historic preservation contracting company, McBride and his business partner, Morgan Reinart, recognized the potential of their specialized wood rot repair service to expand beyond their current operations. 

“We kept asking ourselves, ‘How do we get a manager in DFW or Kansas City to treat people like neighbors?’” McBride said. “It’s about ownership. When we treat people like neighbors, it’s because we’re owners. We knew that local ownership was going to be the best strategy for us, and that’s what led us to franchising.”

McBride explains that their decision to franchise was driven by a commitment to community involvement, seeking franchisees who are passionate about their cities and eager to serve. “I’m looking for people who are passionate about their cities, who know the cool pocket neighborhoods and restaurants,” he said. “They don’t have to have lived there for a hundred years, but they need to be on fire for their city, excited about serving and creating neighbors.” This focus on local ownership and community engagement has been a cornerstone of Preservan’s franchising strategy, allowing them to build a brand that resonates deeply with both franchisees and customers.

To help demystify the process, 1851 Franchise spoke with McBride about his journey to franchising and his advice for others looking to follow a similar path. 

A transcript of the interview has been provided below. It has been edited for clarity, brevity and style.

1851 Franchise: Let’s start with an easy one. Why did you decide to franchise Preservan?

Ty McBride: The real reason we decided to franchise Preservan, my business partner and I — who primarily acts as our operations guy — was that we began with the end in mind. We had a historic preservation contracting company, and we had this really amazing service inside it that did wood rot repair. We wanted to grow that service because we realized it had potential beyond what we were currently using it for. We saw an opportunity to expand it on a regional or even national level. 

When we looked at how to grow it, we knew it was about capital and people — how much money it would take and the people required. What got us excited was the idea of growing through local ownership. That led us to franchising. It wasn’t just about being local but being involved in the community. We always said, “We don’t have customers; we have neighbors.” We kept asking ourselves, “How do we get a manager in DFW or Kansas City to treat people like neighbors?” It’s about ownership. When we treat people like neighbors, it’s because we’re owners. We knew that local ownership was going to be the best strategy for us, and that’s what led us to franchising. Franchising, when done the right way, is about growing an enterprise through local ownership.

1851: It sounds like being involved in the community is a prerequisite for your franchisees. Is that something you look for?

McBride: Absolutely. I was recently on a call with a consultant who asked me what I want to know about a person before continuing in the development process. The first question I ask is, “What do you love about the area you live in, and why do you want to serve it?” I’m looking for people who are passionate about their cities, who know the cool pocket neighborhoods and restaurants. They don’t have to have lived there for a hundred years, but they need to be on fire for their city, excited about serving and creating neighbors.

The other thing I want to know is why, at this moment in their life, they want to start an entrepreneurial journey. It’s not going to be easy, so I want to make sure they’re doing it for the right reasons and that they’ve thought about both the positives and the negatives so they’re in the right mindset and prepared to embark on this journey.

1851: Preservan has a really unique offering that fills a void in the restoration and repair industry. Were you ever concerned about the long-term viability of your business and your ability to maintain steady interest from prospective investors?

McBride: No, I’ve never been concerned about that. It might sound bold, but what we fix is as guaranteed as death and taxes. Wood deteriorates — rot and termites literally grow on trees, and wood makes our homes and buildings beautiful. Wood windows, doors, shutters — all these features are major issues when they start to deteriorate. We knew this from owning and operating a historic preservation contracting firm. Even in newer houses, wood is deteriorating faster due to the development of sustainable wood sources, so we understood the data behind this.

In addition, we understood the research behind our service. We didn’t necessarily come up with the idea of repairing wood with epoxy. It’s something that’s been heavily researched and implemented in the historic preservation space since the mid-60s.

1851: It’s proprietary though, right? The process you guys use isn’t really used by anybody else?

McBride: There are a number of historic preservation data briefs on it, and this process has been used at Monticello, Mount Vernon, the Statue of Liberty and countless other landmark buildings. But yes, the process we’ve developed is unique to us.

1851: What advice would you give to someone who’s thinking about franchising their business? Let’s say they come to you with a blank slate — how should they get started? What would they need to do?

McBride: There are a couple of things I would say. In my opinion, you need to bring something unique to the market. There are a lot of mature players in various spaces, and if you’re just another copycat brand — like another burger joint, for example — you’ll have a hard time gaining traction. So, you need a unique spin on whatever it is you’re bringing to the market.

Specifically, in the home service space, I’d encourage someone to have something backed by technology. I don’t mean just AI, CRMs and all that — though those are necessary, of course. I’m talking about the technology behind the service. Whether you’re in painting, power washing or something else, having a technological element that makes your service better than the rest is crucial. There are some really cool things happening in this space, and Preservan is part of a group of brands leveraging material and construction technology in the home service space.

1851: Franchising is kind of a team sport, and it’s not something you can do on your own. What steps did you take when researching and selecting the professionals you were going to work with? How did you go about gathering your team?

McBride: The first thing I did was get introduced to the idea of franchising through “The E-Myth” by Michael Gerber. That was the first place I thought, “That’s it.” I read everything I could about franchising — there aren’t a lot of books on it, so it didn’t take long. I started listening to podcasts as well.

For me, the most critical part, outside of having a good operation in your prototype, is the partner. The next step is finding the right legal partner because franchising is a legal structure for growing your business. You need the right legal partner. I took every phone call, filled out every form and talked to all kinds of people.

A lot of the conversations I had were with people who said, “We’re going to do all these things for you — build manuals, do this, do that. We also have someone who will help you with the franchise attorney part, the legal side of creating the FDD [franchise disclosure document] and the franchise agreement.” But for me, I chose a different path — I decided to go legal first. I talked to lawyers first and said, “Here’s what we’re going to do. If this is a legal entity, I’m going to talk to lawyers first.” I listened to a couple of them on podcasts, specifically Josh Brown and Charles Internicola, and I learned so much from the legal aspect.

Working with Charles, I understood that the FDD is a document that not only protects the franchise and the system but also helps evaluate the business. He understood the value of a great Item 19, a great Item 7 and a great territory structure. He helped us build something unique that gave potential franchisees the information they needed and gave us a platform for growth. The rest of it kind of came from the legal document. So, I think landing the legal component of your franchise is critical. A good franchise attorney who understands franchising can evaluate whether or not you have a viable business for franchising.

1851: What’s one thing about the franchise process that you wish you’d known a couple of years ago when you were first starting?

McBride: I’d say that I felt obligated to have some friends or family do this first. I’d say to anyone thinking about franchising their business, you’ve got to prove it a little bit with someone who knows you and is willing to sign on with you. That’s Capital Raising 101 — you’ve got to do a friends and family round, and with franchising, it’s essentially the same. We did three right off the bat, and they were essentially friends and family. None were technically family, but they were all people who knew us in the business space and trusted that we had the vision and capacity to build this thing out.

As Charles talks about, there’s a seasoning period where you have these three, you work out the kinks, and you might add one or two more. You’re really focused on seasoning that brand out. That was the kind of advice I was given — not the idea that you’re going to go from zero to 100 in 12 months. It’s cool when others do it, and I love watching others on that journey, but it’s probably not what it’s going to look like for most of us following this other path. I think focusing on building strong relationships with our early adopting franchisees was key.

Another thing I didn’t realize early on was the importance of broker networks. I wish I had started that process earlier. Not all brands are great for broker networks, but ours is. Starting that process is a long one. You might think you throw it out there and brokers will start talking about your business and selling it, but that’s not how it works. It’s a lot of hustle, phone calls and grinding. 

Another thing I didn’t quite realize is that, as an emerging brand, you have to be careful because you’ll feel at times like the vultures are swarming you. There are a lot of people out there who want $1,500, $2,000, $5,000 a month and will make you a lot of promises. As an entrepreneur and founder, you’re super passionate about your brand, and it’s really hard because they’ll sell you on how they’re going to take your brand to the next level. It’s really hard to go slow. I’m fortunate that I got good advice early on to keep me from going down too many of those paths. I’ve talked to other startup emerging brands who didn’t get that advice early, and they gave up all the capital it takes to get started because it does take quite a bit of capital. You really need that money to support your franchisees, not give it all away.

1851: Is there anything I’ve neglected to ask you that you feel compelled to share?

McBride: I think you have to come prepared with the right amount of capital to franchise your business. Realistically speaking, your corporate location is going to have to be highly profitable to help sustain this, and you may need $200,000 to $500,000 to get this thing stood up. 

Of course, different franchise models with different revenue streams are going to vary, but I think it’s realistic to expect that kind of capital to stand up a brand. That’s something there’s no way around. We modeled that out before we got started, and I think that helped us also not get “commission breath” because the scary thing is when you start getting leads and potential franchisees, you might award the wrong thing because you need money to survive as a franchise. That’s not a healthy place to be in if you want to grow and support your franchisees and build something sustainable long-term.

Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.