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Mainland staff writer <a href="https://www.linkedin.com/in/erica-inman-802331259/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-expressions-explained-mainland-ceo-nick-powills-2726854" target="_blank" rel="nofollow">Erica Inman</a> writes about franchising for Mainland's flagship publication <a href="https://1851franchise.com/">1851 Franchise</a> every day and frequently runs into industry lingo that's unique to the franchising space. In an effort to decode some of those terms, she spoke with 1851 Franchise publisher and CEO of Mainland <a href="https://www.linkedin.com/in/powills?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-expressions-explained-mainland-ceo-nick-powills-2726854" target="_blank" rel="nofollow">Nick Powills</a> with questions about four surprise terms.Inman chose “business in a box,” “the dumb tax," “turnkey model” and “work on the business, not in the business" as four sets of terms that the average person interested in franchising might not know off the top of their head. Powills explained the nature of a “box business” as one of the benefits of buying a franchise that “gives you a head start” but still has challenges that need to be confronted and the “turnkey model” as a similar concept where a business is ready to be started right away, like turning a key in a lock. Powills and Inman discussed the phrase “the dumb tax” as the upside to paying franchising fees to benefit from the mistakes that businesses make before they become franchises. He also demystified ”work on the business, not in the business" as the difference between strategy and growth and day-to-day tasks.Terms like these can be helpful to understand during a journey through the world of franchising, and prospective franchisees can learn more by reading <a href="https://1851franchise.com/">1851 Franchise</a> or visiting <a href="https://www.1851growthclub.com/franchisees/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-expressions-explained-mainland-ceo-nick-powills-2726854" target="_blank" rel="nofollow">1851 Growth Club</a>.<a href="https://youtu.be/DN02dgAewXM?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-expressions-explained-mainland-ceo-nick-powills-2726854" target="_blank" rel="nofollow">Watch the full interview on YouTube</a> or read a transcript below. This transcript has been edited for brevity and clarity.Erica Inman: Hello. Hello. I’m a writer with Mainland, and I’m here with Nick Powills, our CEO and publisher. I’ve been interviewing a lot of franchisees and franchisors, and they often use certain expressions to talk about franchising. I’ve made a list of these expressions and thought I’d quiz you today, Nick, to see if you can explain them.Nick Powills: What if I don’t know the answer?Inman: I believe you’ll be able to figure them out. I have faith in you.Powills: Okay, let’s do it. Otherwise, I can use your help.Inman: Great. So, the first term I hear quite often is “business in a box” or “box business.” What do people mean by that?Powills: “Business in a box” means you’re essentially skipping the line by buying something that’s already been created. If you were to start your own non-franchise business, you’d need to come up with a name, register it, create a logo, design your location, supply materials and fixtures, set up a website, establish social media, and get branded items. The list goes on. The benefit of buying a business in a box is that these elements are already handled. However, there are fees such as the franchise fee and royalties, and sometimes tech or marketing fees. While the business in a box gives you a head start, it doesn’t guarantee success; you still need hustle and grit. It’s more about providing a jumpstart rather than skipping the path to profitability.Inman: Very well explained. You mentioned fees, which brings me to my next expression: "dumb tax." Often people talk about the franchisor paying the dumb tax for you. Can you explain what that means?Powills: I’ve never heard the term “dumb tax” before, but I assume it means that the franchisor has already made the mistakes on your behalf. When you pay the fees, you benefit from the franchisor’s experience and avoid some of those early business mistakes. Is that what you think it means?Inman: Yes, that’s exactly it. I’ve been hearing it more and more and quite like the expression.Powills: I wonder who came up with that. There are other common sayings like “brands don’t sell brands, people do,” “why you, why now?” and “don’t bet on the horse, bet on the jockey.” Maybe I’ll add “dumb tax” to my list as well.Inman: Definitely. It’s a good one. Another expression I come across a lot is “turnkey model” when talking about a franchise. What does that mean?Powills: A “turnkey model” is quite similar to “business in a box.” A true turnkey means you buy something, turn the key, and everything is set up for you. In a brick-and-mortar context, this usually refers to buying someone else’s already developed business. Sometimes, it can also refer to modular units delivered by truck or a franchisor setting up the location for you. Essentially, a turnkey model implies that everything is ready to go when you start. However, in franchising, it means you’re getting a business that’s already built, though it may be somewhere in between a fully developed model and a new setup.Inman: Definitely. Lastly, the phrase “I want to work on the business, not in the business.” What does that mean?Powills: Working “in the business” refers to handling day-to-day tasks, such as taking orders or managing operational details. Working “on the business” means focusing on strategic planning, scaling the business, and improving the company culture. For example, in a McDonald’s, working in the business would be dealing with counter orders, while working on the business would involve thinking about how to grow and improve the business. Initially, franchisees might need to get involved in every aspect to understand how things work, but eventually, focusing on strategic growth and development is crucial for scaling the business.Inman: That’s great advice. Thank you for explaining these expressions. Do you have any final words of wisdom for people approaching franchising for the first time who find the lingo intimidating or are unsure?Powills: Buying a franchise is a significant decision because you’re investing a substantial amount of money into a business with limited control. The benefits include skipping the setup phase and avoiding early mistakes. However, the biggest risk is your mindset. Success and failure depend on your attitude and approach. Remember that a dollar spent in a franchise is effectively worth less due to fees and other expenses. Also, plan for the long term, be prepared for rainy days, and consider how you can scale the business. With this mindset, you’ll be better equipped to build a successful business that can benefit your family and future.Inman: Awesome. Thank you so much for your insights.Powills: Thank you. This was fun! &nbsp;

Franchising Terms Explained: What is "the Dumb Tax?"

1851 Franchise

https://www.youtube.com/embed/DN02dgAewXM

Mainland CEO Nick Powills recently sat down with staff writer Erica Inman to take on four mystery questions about unique franchising terminology.

Franchise Expressions Explained with Mainland CEO Nick Powills: What is "the Dumb Tax?" 

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Franchise buyers have more tools than ever to research brands, and artificial intelligence (AI) is&nbsp;<a href="https://1851franchise.com/goodspark/why-franchise-brands-need-to-rethink-distribution-in-the-ai-era-2732127#featured">quickly becoming one of them</a>.&nbsp;<a href="https://hellomainland.com/">Mainland</a> is already thinking about how that shift could change marketing and public relations moving forward.“You watch the news or listen to the voices of this world, there is some fear over what the future of our job force will be in a world of AI,” said Mainland co-founder&nbsp;<a href="https://www.linkedin.com/in/powills/">Nick Powills</a>. “Rightfully so. Anytime a new technology pops into production, it can raise some concerns for people who don't know how to use it and how to leverage it.”As a franchise PR agency,&nbsp;<a href="https://1851franchise.com/mainland/info">Mainland</a> works at the intersection of storytelling, media and brand visibility. That means understanding not only where media is today, but where it is headed next.“We have to be looking at what is going to evolve and change in that category and in delivery,” Powills said. “One, to make sure we're staying ahead of the curve as a business and, second, to make sure we're staying ahead of the curve for our clients.”<h2>Media Has Changed and PR Is Changing With It</h2>Social media is one of the clearest examples of how fast media can change. In the past, brands relied on newspapers, television and radio to reach audiences. Today, anyone with a phone and a platform can become part of the media conversation.“All of a sudden, we, the people, became the media,” Powills said. “And it's fascinating because it's impacted elections. It reports on breaking news faster than anything else.”&nbsp;That change has directly impacted PR. Traditional media placements still matter, but they are no longer the only path to getting seen. Podcasts, creators, influencers and digital-first storytelling have all become part of the mix. PR has to be built across multiple channels where both people and AI are getting their information.&nbsp;“In the past, it was PR, meaning ‘Let's go get in biz journals and daily newspapers and radio and TV,’” Powills said. “Then comes podcasts, then comes bloggers. And so now the availability of the message continues to heat up.”<h2>AI Is Becoming Part of Franchise Buyer Due Diligence</h2>One of the biggest shifts Mainland is watching is how&nbsp;<a href="https://1851franchise.com/goodspark/ai-franchise-sales-2732234#featured">AI is changing the research process</a> for franchise buyers. Prospective franchisees can now use tools like OpenAI’s ChatGPT, Anthropic’s Claude or Google’s Gemini to ask detailed questions about a franchise before ever submitting an inquiry form.“I can go on to ChatGPT or Claude or Gemini or whatever system I use and I can say, ‘Should I buy this franchise? What are the pros and cons of buying this franchise? Who are their top franchisees?’” Powills said. “What AI is doing is acting as my Wikipedia before buying a business.”&nbsp;As AI becomes part of the research process, brands need to think about how their stories are being found, summarized and presented before a buyer ever reaches out. That means thinking carefully about where their story appears and how AI tools may interpret it.&nbsp;&nbsp;<h2>The Future of PR Is Bigger Than Media Relations</h2>AI does not signal the end of PR. But it does change the job. Rather than focusing only on pitching journalists, PR professionals will increasingly need to think strategically about how stories are structured, distributed and understood by both humans and machines.“PR is going to change drastically,” Powills said. “We’re not going to be in the business of pitching just the media any longer because the media is going to continue to change. It’s going to be in the business of building influence around a product or a business.”Powills believes that this will raise the bar for communications professionals. PR professionals will need to raise their level of professionalism and deepen their knowledge base. “They’re going to have to have a strategic conversation,” he said. “They’re not just going to be doers.”<h2>Building Brand Stories for the AI Era</h2>At Mainland, the focus is on helping brands make their stories visible wherever people search for information, whether that is through traditional media, podcasts, search engines or AI assistants.“We have to make sure it’s machine-ready, it’s machine learning, it’s telling the good, the bad and the ugly and we’re transparent,” Powills said. “I think transparency is going to lift up even more as this gets stronger.”Now, franchise brands have to think strategically beyond earned media impressions and ask a new set of questions: How is the brand being talked about online? What information is AI pulling into answers? And what story is a prospective franchise buyer hearing before they ever speak to the development team?“When you’re looking at how to hire a PR agency, you’re actually finding one that is thinking about how do we integrate your story, not just in the Wall Street Journal, but in ChatGPT,” Powills said. “And it carries equal, if not greater, weight for what you can do for your brand.”AI is reshaping how franchise stories are found and shared, and the agencies that adapt early will be the ones helping brands stay visible in this new era.&nbsp; To learn more about working with Mainland, visit&nbsp;<a href="https://hellomainland.com/">https://hellomainland.com/</a>.&nbsp;

New developments in AI are entering franchise marketing, franchise public relations, PR strategy, and franchise marketing trends.

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Franchise candidates rarely make decisions overnight. In fact, most spend months researching, validating and looking for proof points before taking the leap. For&nbsp;<a href="https://www.linkedin.com/in/jennychaney">Jen Chaney</a> and the team at&nbsp;<a href="https://rightathomefranchise.com/">Right at Home</a>, one of those proof points came in the form of a regional media placement secured by&nbsp;<a href="https://hellomainland.com/">Mainland</a>.<a href="https://www.gazettextra.com/news/local/right-at-home-in-home-care-company-eyes-janesville-market/article_baad327d-db3b-49b0-bb59-77f09051d024.html">A feature in The Gazette (GazetteXtra)</a> spotlighted the brand’s expansion into the Janesville, Wisconsin market and highlighted the human stories behind the opportunity.According to Chaney, the coverage became a pivotal touchpoint for&nbsp;<a href="https://www.linkedin.com/in/katie-villa/">Katie Villa</a> and&nbsp;<a href="https://www.linkedin.com/in/maryjovilla/">Mary Jo Villa</a>, a mother-daughter duo in Janesville, Wisconsin who had been exploring <a href="https://1851franchise.com/rightathome/right-at-home-mother-daughter-franchisee-janesville-2732128#stories">their next chapter</a>. Katie spent years on the frontlines of healthcare, beginning as a caregiver in college and later working as a nurse, an experience deepened by personally caring for her grandfather during hospice. Meanwhile, her mother Mary Jo brought a background in human resources and operations, having held a variety of roles across newspapers and radio stations.After reading the article, they saw themselves reflected in the opportunity and ultimately decided to move forward with a&nbsp;<a href="https://1851franchise.com/rightathome/info">Right at Home</a> franchise.<h2>The Power of Seeing Yourself in the Story</h2>The GazetteXtra feature focused on more than just a business opening. It told a story about people and community impact.“When Katie saw this article and sent it to me, my first piece of pride was, ‘Yes, she's still reading the newspaper.’ But I told her we should absolutely explore it,” Mary Jo said. “I have been so impressed with Right at Home. They were clearly selecting us, and we were selecting them.”That approach is a prime example of what Mainland’s Vice President&nbsp;<a href="https://www.linkedin.com/in/juliemaw1">Julie Maw</a> says is a defining PR trend for 2026:&nbsp;<a href="https://1851franchise.com/mainland/top-pr-earned-media-trends-2026-2731198#stories">franchisee-led storytelling</a>. “The most powerful PR asset in franchising is the franchisee, not the brand,” Maw said.For prospective owners who may be transitioning careers, these stories act as important validation. The mother-daughter duo saw a version of their own future reflected in the coverage.&nbsp; “Katie's only 30 years old, and so yes, she has me, but you need someone other than your mom validating what your mom says,” Mary Jo said. “So I’ve been extremely impressed with the expertise coming out of Right at Home corporate&nbsp;and how they bring new owners on.”<h2>Regional PR as the Conversion Catalyst</h2>Mainland knows that&nbsp;<a href="https://1851franchise.com/local-vs-national-franchise-marketing-2726180">regional and local coverage</a> can play a different role than national press, especially when candidates are already weighing the benefits of a specific market.“While national credibility gets attention, local relevance drives the action,” Maw said.The GazetteXtra article served as a localized proof point. It demonstrated demand in a specific market, highlighted community need and showed how the brand operates on the ground. For candidates already in the consideration phase, that kind of visibility can accelerate decision-making. In this instance, it became the tipping point.<h2>Activating the “Buzz Factory”</h2>Mainland’s strategy centers on what Maw calls activating the&nbsp;<a href="https://1851franchise.com/buzz-factory-process-mainland-franchise-growth-2731901">“buzz factory,”</a> making sure brands are consistently visible across national and local channels throughout the research cycle.&nbsp;That GazetteXtra feature, for example, was just one piece of a larger PR puzzle designed to keep Right at Home top-of-mind while candidates weighed their options across multiple touchpoints.“PR is a marathon,” Maw said. “It’s not just a flash-in-the-pan moment.”<h2>More Than a Placement&nbsp;</h2>For Mainland, this outcome reflects a larger philosophy that PR is not just about media coverage. It’s about building a strategic narrative that&nbsp;<a href="https://1851franchise.com/mainland/how-mainland-and-1851-franchise-impact-your-brand-story-supports-the-sales-funnel-2717348">supports franchise growth at every stage of the funnel</a>.Sometimes, all it takes is the right story, in the right publication, at the right moment.Growing and selling franchises is difficult. Want to learn more about how Mainland helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="https://hellomainland.com/?utm_source=1851franchise.com&amp;%3Butm_medium=article&amp;%3Butm_campaign=mainland-secures-nearly-10-million-in-media-value-for-franchise-clients-in-early-2025-2728648&amp;utm_source=1851franchise.com&amp;utm_medium=article&amp;utm_campaign=top-pr-earned-media-trends-2026-2731198">https://hellomainland.com/</a> and see what we can do for you.

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When a mother-daughter duo came across local coverage about Right at Home’s Wisconsin expansion, the story helped push them toward franchise ownership.

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Franchise Expressions Explained with Mainland CEO Nick Powills: What is "the Dumb Tax?"

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