Paul Janicek, CEO and founder of DocuLock, initially only had a single corporate location with the brand. However, his perspective changed in 2020 when he experienced a significant health event. Janicek had open-heart surgery, which made him rethink his goals and priorities.
“I came out of that with a new understanding of what I needed to do: to offer more opportunities for people that wanted to become business owners,” said Janicek in a recent episode of the “Meet the Zor” podcast, hosted by 1851 Franchise CEO, Founder and Publisher Nick Powills.
Janicek initially attempted to handle the legal requirements of franchising on his own, including creating the Franchise Disclosure Document (FDD). He went into franchising with big ambitions, but soon was humbled by the enormity of the undertaking. Realizing the complexity, he eventually enlisted professional help, which enabled him to get the franchise legally established within a year. Since then, he has learned a lot about the importance of a supportive network.
“I initially [went in thinking] of McDonald’s, but I soon realized the complexity,” said Janicek. “Many brands that could be great franchises don’t pursue it due to fear. I found a way by surrounding myself with trusted advisors who knew more than I did, redefining my raw ideas into workable plans.”
The idea to franchise DocuLock was also influenced by the brand’s participation in a local incubator’s Shark Tank-style contest, which it won. This success hinted at the potential for franchising. Despite initial setbacks, including the need to repurchase a franchise due to a franchisee’s health issues, Janicek remained committed to refining the franchise model.
Janicek’s approach to expanding DocuLock through franchising is characterized by his innovative strategies and commitment to supporting franchisees. For example, he partnered with Northwest Missouri State University to offer a franchise to top entrepreneurial students, aiming to foster new business owners without burdening them with debt.
“I focused on the mission to help people become entrepreneurs,” he said. “Whether they do it with DocuLock or another brand, I want to support them.”
To further support franchisees, DocuLock has developed a comprehensive lead generation system activated as soon as a franchise agreement is signed. This approach, along with potential supplemental services like document shredding, ensures franchisees have multiple revenue streams.
A summarized transcript of Janicek’s interview with Powills is included below. It has been edited for clarity, brevity, and style.
Powills: All right Paul, let's start with your story before we dive into the brand. How did you fall into franchising?
Janicek: It wasn't accidental for me. It was definitely by design. With DocuLock, we do document scanning and archiving. We initially just had our corporate location until 2020. That year, I had to have open-heart surgery at 46, a quintuple bypass. It was a wake-up call, and I came out of it wanting to offer more opportunities for people to become business owners. Franchising had been on the horizon before, but this event pushed it forward. I built everything out myself, including the FDD and the FA [franchise agreement], which I later had an attorney fix. We got everything legal and up and running within about a year.
Powills: You were running DocuLock as a corporate location going into 2020 and then had your heart surgery. Had you thought about franchising at that point?
Janicek: No, nothing was done yet. We had done a “baby Shark Tank” incubator contest and won, part of which included having franchises. I was ignorant about the process. I came out of the hospital in October 2020, spent two months recovering and then worked from January to November 2021 to build the franchise system.
Powills: Did you consider using a consultant to help you franchise, or did you do it all yourself?
Janicek: I looked into a few consultants, but the costs were too high for my budget. As an entrepreneur, you find a way. After the last rejection, I decided to build it myself. It had its hiccups, but I got it done.
Powills: Your perception of franchising must have changed drastically from before the Shark Tank to now, right?
Janicek: Absolutely. I initially thought of McDonald's, but I soon realized the complexity. Many brands that could be great franchises don't pursue it due to fear. I found a way by surrounding myself with trusted advisors who knew more than I did, refining my raw ideas into workable plans.
Powills: It's interesting. As franchisors, we often present franchising as “buy my franchise,” but many potential franchisees don't understand the depth of it. They get scared and ghost us. How do you address this?
Janicek: We had many options, like the FSO [franchise sales organization] model or going independent. I'm working on a hybrid approach. I partnered with Northwest Missouri State University to offer a franchise to their top entrepreneurial student. We awarded our first one last year, and they are doing great. We just awarded our second to an active-duty police officer looking for additional revenue.
Powills: Did you waive the franchise fee for the university student?
Janicek: Yes, I waived everything. I didn't want to burden graduates with more debt. Everyone advised against it, but I focused on the mission to help people become entrepreneurs. Whether they do it with DocuLock or another brand, I want to support them.
Powills: Your website's first words are, “Own a DocuLock franchise,” but your mission is to build entrepreneurs. How can you align your message better?
Janicek: I agree. The website needs refinement. We want to attract those excited about what we do, who are outgoing, can sell, go to events and respond to leads promptly. These are crucial for success.
Powills: Your franchise fee is $49,500. How do you justify it, and are there alternative ways to attract the right candidates?
Janicek: We account for brokers, but we also approach individuals organically. We have a payment plan and focus on lead generation. We turn on a lead system as soon as the FA is signed and are building a network of 1099 contractor sales reps to bring in leads for franchisees.
Powills: I appreciate your insights. You know how to pull a kid out of college and give them the tools. Have you considered eliminating the franchise fee for select candidates and focusing on organic growth?
Janicek: That's a great idea. We are working on various approaches and refining our strategies.
Powills: Finally, after your heart surgery, did your perspective on life and business change?
Janicek: Absolutely. I realized I needed to walk the talk and genuinely help people become entrepreneurs. My surgery gave me time to reflect deeply and motivated me to take action to remove barriers for aspiring business owners.
You can watch and listen to the entire interview above, or on YouTube.