FranX | The Exit Should Always Be On Your Mind

The Next McDonalds (Big Idea)

Will NFT’s Transform Franchising?

NFT’s and franchising?

Yes NFT’s! Those crypto, block-chain driven non-fungible tokens that, seemingly, everyone derides as overpriced JPEG images, represent a massive incoming wave of technology reaching the shores of franchising and every business. NFT technology will be transforming all industries and will tokenize economic transactions that include community building, brand building, capital raises, stock sales, customer rewards, membership programs, contracts and, even, franchise ownership and finance.

How will this influence franchising, franchise finance, franchise agreements, community and franchise brand building? The answer is anyone's guess right now, but the technology is advancing and we’re starting to see signs of change.

Will NFT’s change how franchisors raise capital? They will. NFT’s of the future will come to represent investor equity, debt, and corporate governance instruments. How this plays out and whether or not the NFT’s are just another version of a regulated stock or security is an issue to look out for. In what appears to be a franchise industry first, franchisor Chick’nCone has launched the minting of their NFT Chick’nCOIN.

Based on their website, if you want to mint a Chick’nCoin NFT, you connect your digital wallet, you pay a fee of 3.5ETH (approximately $9,500) and you receive a freshly minted NFT.

What's the value of the Chick’nCoin NFT? Well that’s anyone's guess but according to Chick’nCone’s website your NFT is automatically generated for a particular trade area and if a Chick’nCone restaurant opens in that area you receive a portion of the franchise fees and royalties. You could even buy and sell existing Chick’nCoin NFT’s on the OpenSea marketplace here.

The point of this article is not to recommend the Chick’nCoin NFT. We don't and can't recommend that you buy the Chick’nCoin NFT or any NFT. We can't even say if this NFT is being offered legally. Is it security? Should they be providing a prospectus? Should there be an underlying contract that entitles the holder to collect fees? Plus so many other questions that we have not evaluated and just don't know.

Whether or not the Chick’nCoin NFT is a good idea, legal, or properly executed, the bigger point is that NFT’s are coming. They will include payment tools, community building tools, finance tools, and branding opportunities.

NFT’s are not just glorified JPEG images and they need to be on your radar!

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Franchisees Kicking Ass: The Franchisee is King

The Great Franchisee: Jim Stepnoski, Pool Scouts*, Florida

The former aviation executive has signed on to open three territories with the fast-growing pool maintenance franchise.

Aviation expert Jim Stepnoski is leaving behind a 36-year career in aviation to start a new career chapter as one of the newest franchise owners with Pool Scouts*, the 100-plus-unit pool maintenance franchise.

We spoke with Stepnoski, who plans to open his first territory with Pool Scouts in Merritt Island in March, to learn more about his path to franchising and his experience with the fast-growing pool brand.

Yo Broker, Sell My Franchise

The Brands that Shaped Franchising: Dunkin’

Since being founded in 1948, the international coffee and donut chain has paved the way for franchisors across the globe, spearheading the creation of the IFA, optimizing international development and more.

America runs on Dunkin’, but what does Dunkin’ run on? In a word: franchising.

With over 11,300 international locations as of 2021, Dunkin’ is the world’s eighth-largest franchise and has a dominant presence in the franchising industry at large. But this is nothing new — since the brand started franchising in 1955, Dunkin’ has played a major role in the formation of the industry, acting as a guiding light for many other fast food chains to follow. So, how did it happen?

READ THE STORY

The Bottom Thoughts

Life goes fast. Really fast. Thus, even though it may feel like a business exit may be light years away, it isn’t. All of us will exit, whether we like it or not. So, why not start with the exit in mind.

Is it a dollar number? Is it a timeframe? Is it a multiple? Is it at the point of exhaustion (we hope not)?

Franchisee, franchisor, founder or supplier – what does your exit look like.

Write that down.

Now, work backwards. What decisions would you change/make knowing that’s where you want to get to. Do you invest more? Do you reinvest more? Do you build a stronger team? Do you build a larger bench?

Scaling is tough. There are dark periods where money goes out and very little, in cash, returns. But for those playing the long game, they have the mentality and ability to weather that storm. Do you?