Franchisor Stories
Buddy’s Home Furnishings Senior Director of Franchise Development Mitchell Lee shares how his experience selling cars shaped his approach to franchise sales.
Selling a franchise is about more than just closing a deal. It’s about guiding someone through one of the biggest financial decisions of their life. Mitchell Lee, senior director of franchise development for Buddy's Home Furnishings, learned this firsthand in car sales, where every customer interaction was make-or-break. On this episode of the “Franchisor Hot Seat” podcast, 1851 Founder and Chief Growth Officer Nick Powills speaks with Lee about this experience.
“Franchise sales is a mental grind,” said Lee. “I make 80 to 100 cold calls a day. Working from home adds another layer — you have to be self-motivated. The investment and time involved make it a challenge, but it's rewarding.”
During the conversation, Lee unpacks the parallels between selling cars and selling franchises, offering key insights on relationship-building, buyer psychology and what it really takes to turn a lead into a successful business owner.
A transcript of Powills’ conversation with Lee has been provided below. It has been edited for brevity, clarity and style.
Nick Powills: All right, Mitchell, let's start with you. How did you accidentally fall into franchising? What's your franchise backstory?
Mitchell Lee: Great question. I'm a hardcore Texas Tech alum and graduate. Most Red Raiders find their way to DFW, and I needed to make money. I moved to Dallas with $2,000 to my name. I went to Sewell Lexus Dallas and started selling cars.
I sold a car to someone who worked at a fast-casual brand, and he told me I'd be great at franchise sales. I had no idea what that meant. After two years in the car business, the grind wore on me — especially working every Saturday. I moved to the fast-casual brand, starting as a sales coordinator and working up to director in three years.
COVID hit the restaurant industry hard, and franchise sales weren’t a priority when brands were just trying to survive. I spent a year at Driven Brands working on a conversion model before a recruiter reached out about a role at Buddy’s. I’ve loved it. I’m coming up on four years in April, now leading franchise development for the brand.
Powills: I love that you went from car sales to franchise sales. Car sales are tough, but franchise sales might be even harder. You're asking someone to invest their life savings into a business they have little control over.
How did your car sales experience translate, and what was your awakening moment when you realized this was different?
Lee: Car sales are physically demanding. You're in a suit in Texas heat, running around the dealership, managing deals and constantly moving. At Sewell, we started on a training budget, but then it was straight commission. At 22, I was the only income earner — my girlfriend (now wife) was student teaching — so I had to hustle.
Sewell was ahead of the game in customer service — offering car washes, loaners and great sales training. That foundation set me up for franchise sales. Most people in my role come from franchising — either as franchisees, in operations or having sold their own business. I got there fast.
Franchise sales is a mental grind. I make 80 to 100 cold calls a day. Working from home adds another layer — you have to be self-motivated. The investment and time involved make it a challenge, but it's rewarding.
Powills: That first interaction in sales is critical. At a car dealership, if you mess up the first conversation, the buyer moves on. How important is that first call in franchise sales? What was the secret sauce in car sales that helped customers see the dream, and how does that translate to franchising?
Lee: Great question. Think about car buying — you come in with one idea and often leave with something else. The key was getting customers into the showroom or on the phone. Sewell did 350-400 new car sales a month with about 50 salespeople, plus 300-400 pre-owned sales with 30 people. You had to be the first one to answer, always looking for customers.
The first step was to get them on a test drive. If they saw, felt and drove the car, the chances of closing increased. During the test drive, I focused on building a relationship — asking about their background, family, interests. That personal connection made all the difference.
Franchise sales is the same. I have one shot to make a lasting impression, and it's even harder on a cold call. Before I call a lead, I check their Facebook, LinkedIn and Instagram, looking for connections. If I can turn a 15-minute call into 30 minutes, I’ve made progress. Most leads don’t buy right away, but they stay in my pipeline. Many of my deals take 12 months or more because people need time to get financially or mentally ready.
Powills: Out of 100 people who walked onto the lot, how many bought a car?
Lee: I had a higher rate than most — probably 20-30% of in-person customers bought a car. For phone leads, it was around 10%.
Powills: You mentioned in car sales, customers don't always win every negotiation. How does that apply to franchising?
Lee: I always told customers, "I'll work hard for you on price, trade-in and financing. You're not going to win all three, but I’ll fight for you." Same in franchising — you won't love every aspect of a brand, but there’s a reason we keep everyone in the same sandbox.
McDonald's doesn’t look for chefs — they look for operators. I tell prospects, "You might not like everything, but talk to franchisees. They’ll give you insight." We’re a family. Families don’t always agree, but if we share the same goals, we can be successful.
Powills: Franchise sales isn’t just about signing deals — it’s about bringing in strong operators who will succeed and grow. If a car buyer couldn’t afford a Lexus, you’d take them to pre-owned. But in franchising, you can’t do that.
Lee: Exactly. At Sewell, new car sales weren’t the dealership’s main profit driver — service, trade-ins and financing were. Similarly, franchisors don’t make money from franchise fees. Some see it as a revenue stream, but real earnings come from ongoing royalties and franchisee success.
At Buddy’s, we keep fees competitive — $40,000 initial fee, $25,000 for additional units. We waive royalties for six months so franchisees can focus on building their business. Our marketing fund stays low — 2% minimum, recommended 3%, split between local and national efforts.
We're also flexible on real estate. Some brands require specific locations; we don’t. Our stores range from 4,000-6,000 sq. ft., usually near Walmart, Dollar General — not necessarily high-end areas. We focus on what works best for our franchisees.
Powills: You naturally pivot to selling. This conversation is fascinating because of the crossover between car and franchise sales. You also touched on support — Sewell’s free car washes, loaners and pick-up services. That’s innovation. Franchisors who prioritize franchisee support can set themselves apart.
Lee: Absolutely. New car sales alone don’t sustain a dealership, so they create services to keep customers engaged — just like strong franchisors do.
At Buddy's, we launched the Buddy's Purchasing Program. Instead of franchisees sourcing inventory alone, they order through our system. We front the costs for 30 days, giving them net 60 terms. We also have a $20 million credit line with vendors, meaning our franchisees get better pricing and terms.
We streamline invoicing — mid-month and end-of-month statements — so franchisees aren’t drowning in paperwork. We have no distribution centers, so products go straight from vendors to stores with no markups.
Powills: That’s a smart model. Franchisors should take notes — fees alone don’t drive profitability. It’s about long-term franchisee success.
Before we wrap, what’s the investment to get in? What can franchisees expect in returns?
Lee: The total investment for one store is around $600,000. We look for $200,000 liquidity and $600,000 net worth. Our stores have averaged $1 million in revenue over the past four years.
Net profit has varied — COVID affected costs — but typically ranges between 13-25%, now averaging 18-20%. I have FDDs to share with prospects.
Powills: You clearly know how to sell. This was a great conversation. Thanks for doing this.
Watch the full conversation above or on YouTube.
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