Tom DuFore’s Journey into Franchising and the Founding of Big Sky Franchise Team

For Tom DuFore, founder and CEO of Big Sky Franchise Team, the journey into franchising began as many successful careers do — unexpectedly. After graduating with a degree in business management, his goal was to enter the world of management consulting. Little did he know that a job opportunity with a franchise consulting company would change his career trajectory and set him on a path to becoming a franchising expert.

“My goal was I wanted to get into management consulting. I was a business management major, wanted to work for a consulting group. And that was my focus,” DuFore said. “And it just happened to be that the first opportunity that I had that seemed interesting to me was at a franchise consulting company, helping companies franchise their business. And so, I fell in love with the industry and franchising and just the power of franchising.”

It wasn’t long before DuFore took the entrepreneurial plunge himself. After years of consulting and a stint in the commercial paving and roofing industry, he started Big Sky nearly nine years ago. His experience working closely with businesses as they embarked on their franchising journey gave him unique insights into what it takes to franchise a business successfully — and what pitfalls to avoid.

Big Sky’s Services and Approach

Big Sky Franchise Team specializes in helping businesses franchise their operations. Whether a company is at the beginning of its franchising journey or looking to expand further, Big Sky offers a comprehensive suite of services designed to guide businesses through every step of the franchising process. The company’s signature program, the Franchise Blueprint, serves as a feasibility study to assess a business’s readiness to franchise and provide strategic recommendations for moving forward.

One of the key factors that sets Big Sky apart from other franchise consulting firms is its thoughtful and relational approach. “Our number one value is win-win relationships. And so we truly like to find the win-win, certainly for the client and for us,” DuFore said. “And we’re relational in nature. So if we’re going into this initial engagement under the premise that, well, we’re just taking your money, that’s a pretty poor way to begin a relationship with any person.”

This focus on creating long-term value for clients means that Big Sky isn’t afraid to tell businesses when they’re not ready to franchise — a stance that can be rare in the competitive world of franchise consulting. As DuFore puts it, “The big push that we like to look for is … it has to work for a franchisee. If it’s not viable for a franchisee, then why are we doing this? I mean, the whole point is to provide a pathway for that franchisee to find some success, however they’re defining it, through your franchise system.”

Recognizing and Encouraging Entrepreneurial Talent

Beyond his work helping businesses franchise, DuFore has a passion for fostering entrepreneurial talent within organizations. He believes that many employees — especially key leaders — have an entrepreneurial spirit that, if harnessed properly, can significantly benefit the business. DuFore highlights the importance of creating a work environment where employees feel ownership and control, even if they aren’t the company’s founders.

“I blend those worlds together and start saying, well, how can I help create a work environment where I help my key staff and leaders? How can I help them feel like they are their own boss here?” he said. DuFore believes there are three key elements to fostering this entrepreneurial mindset: providing employees with control over their time, tying their compensation to the company’s performance and allowing them to pursue creative ideas within the business.

For example, giving employees some flexibility with their schedules or letting them take on new projects can go a long way toward making them feel invested in the company’s success. “Maybe they want to come in and start their day at 10 o’clock in the morning because it’s the only time they get to see their kids for the week,” DuFore said. “And they’re going to stay and work until eight o’clock at night. I don’t know.” Encouraging employees to explore new ideas in a safe environment, where success or failure won’t make or break the business, helps them develop the entrepreneurial skills needed to drive the business forward.

DuFore was recently featured on an episode of the “Meet the Supplier” podcast, where he discussed all this and more with Nick Powills, founder and publisher of 1851 Franchise.

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

Nick Powills: What’s up, everybody? Nick Powills, publisher of 1851 Franchise, here with another episode of “Meet the Supplier.” These are the exciting ones, Tom, because I get to learn about your business and the problems that you solve for franchise companies. 

Before we get into the business side, take me through your franchise journey. How did you accidentally fall into franchising?

Tom DuFore: I appreciate you asking this question. First off, I want to thank you for having me on the show today. I like how you describe it as “accidentally falling into franchising.” I think most of us in the franchise world end up here not by intent. It just kind of happens that way, and mine is very similar.

My first job right out of undergrad was with a management consulting company. My goal was to get into management consulting — business management was my major. I wanted to work for a consulting group, and it just so happened that the first opportunity I had that seemed interesting was at a franchise consulting company, helping businesses franchise their operations. I fell in love with the industry and with franchising, just seeing the power of it.

Around the same time, I had read “The E-Myth” by Michael Gerber. He talked about franchising, replication and systems, which really resonated with me. My dad owned a small used car lot, and I was helping him out over the summers, so it all started to connect. Between those influences, I fell in love with franchising and have stayed in it pretty much ever since.

Powills: So you stayed at the consulting firm and then eventually quit to start your own. Is that the path?

DuFore: Yeah, pretty much. From there, I ended up getting hired by one of my clients — a company I had worked with for a few years. I always say in consulting, you know you’re doing a good job when your clients offer you full-time employment! I had several offers over the years, but none really interested me until one came along. 

I worked in the commercial paving and roofing space for a company based out of Schaumburg, Illinois. I stayed there for a few years before getting back into consulting. I had a partner for a while, but we had different visions for where we wanted to take the company. Eventually, I decided to start Big Sky about eight and a half, almost nine years ago.

Powills: You’ve been running your own business for nine years now, but before that, you were working for all these people. There was an entrepreneur in front of them, but they didn’t see it. What happens, in my opinion, is that leaders often don’t recognize the entrepreneur in their employees. If they do recognize it, they should figure out how to channel that person’s energy and craziness into their business. 

When I say “craziness,” I mean fearlessness and the ability to break through barriers. Equity often becomes the missing piece. Sometimes people don’t recognize or listen to the voices around them, which is where they miss out. It sounds like you had similar experiences. When you hear this, how does it resonate with you?

DuFore: That’s a great comment, and it makes me think about franchise data. “Franchise Ventures” always publishes research about budding entrepreneurs, asking them why they want to be their own boss. Consistently, about nine out of ten say they want to be their own boss. It’s been a catchphrase in franchising for decades: “Be your own boss. You’re in business for yourself, but not by yourself.” 

As a leader, if you want to retain top talent, you need to recognize that a lot of your leaders probably have some version of the entrepreneur inside them. Some will become entrepreneurs themselves if they haven’t already. To me, as a leader, I think about how I can create a work environment where my key staff and leaders feel like they are their own bosses within my company. 

I focus on two big items. First, people want control over their time. How can you provide some type of autonomy over their time? Maybe they want to start their day at 10 a.m. because mornings are the only time they can see their kids. You can accommodate that. 

The second is tying their financial rewards to the performance of the company. Salespeople usually have compensation tied to sales, but management and operations staff don’t always have that same opportunity. So, creating a compensation structure that ties their success to the company’s success helps satisfy their entrepreneurial drive.

Lastly, I think about creating a space for intrapreneurship — allowing people to try out new ideas within the company. Give them a safe place to fail or succeed. Whether they succeed or not, they get to satisfy that creative itch without putting the whole business at risk.

Powills: One of the hardest conversations, I think, is about equity. People love to celebrate when things are going well, but when things are tough, they need to be willing to put more effort into the business. Sometimes, it’s not about cash — it’s about sweat. If someone says they aren’t willing to put in extra effort during tough times, then equity probably isn’t the right fit for them.

I’ve always said that franchising is entrepreneurial, but it’s not for entrepreneurs. When you buy into a system, you have a safety net. If you use that safety net wisely, you can build something greater on top of it. The royalty you pay is the operational cost of doing business.

Hearing your story makes me think about all the people out there wondering if it’s their time to take that leap. Are they entrepreneurial? Is their company taking care of them? Has anyone asked them what’s important to them?

DuFore: Exactly. That’s a great point. I’ve always had a slightly different perspective on franchising than you. I see franchisees as entrepreneurs. They’re executing on a system, but they’re still making it their own. 

What I hear from you, though, really resonates. We’ve all had moments when we missed opportunities with people who could have been great leaders if we’d given them the right support. I’ve had misses in my own company where I couldn’t figure out how to bring someone into a partnership or leadership role, either because the business wasn’t ready or I wasn’t. It’s definitely a challenge to know when the timing is right.

Powills: Yeah, it’s like deciding when to have kids — you’re never really ready, but sometimes you just have to go for it. 

I break franchisees into two categories: those with an operator mindset and those with an income replacement mindset. One is focused on building wealth, and the other is focused on replacing their salary. Both are valid, but they’re very different mindsets. 

At the end of the day, we all have different paths to the same destination. We’re all going to end up in the same place eventually, but how we get there — whether through wealth-building, family legacy or just living life — is different for everyone.

DuFore: I like how you break that down, and I agree. In franchising, I’ve seen both types—those who are building something bigger and those who are replacing income. Even among the entrepreneurs we work with, there are those who started out just looking for a way to make a living, and now they’ve built thriving businesses. 

The clients we work with often want to franchise because they want to provide others with the same opportunity that changed their lives. They’ve figured out a system, and now they want to help others use that system to change their lives too.

Powills: That’s a good segue into your work. When a brand comes to you and says, “I want to franchise my business,” how do you handle it when you see they aren’t ready or their expectations are unrealistic? How do you say no to someone when they’re waving a big check in your face?

DuFore: That’s a great question. If it’s unclear or murky in the beginning, that’s usually a red flag to pause and reassess. That’s part of why we developed our Franchise Blueprint program, which is essentially a feasibility study. It’s a comprehensive analysis to help determine whether a business is ready to franchise. 

We take a consultative approach, assessing viability. For example, we recently told a potential client that we didn’t think he was ready to franchise. He wasn’t happy about it, but from our assessment, his business wasn’t ready. 

The big thing for us is that it has to work for the franchisee. If it’s not viable for them, then why are we doing this? The point of franchising is to provide a pathway to success for the franchisee. If that’s not happening, it’s just setting up the franchisor for problems down the road.

Powills: It must be challenging to say no when you know there are plenty of consultants out there who would happily take their money. How do you navigate that?

DuFore: Yeah, of course. Our number one value is win-win relationships. We’re not about high volume; we’re relational in nature. If we’re just taking a client’s money without setting them up for success, that’s not the kind of relationship we want. We’re okay with saying no, or with a client going to a competitor if that’s a better fit for them.

Just because a business isn’t ready today doesn’t mean it won’t be ready in the future. I’ve had people come back to me years later, after they’ve made improvements, and then we can work together.

Powills: Is it hard to create differentiation between what you do and what other consultants do? Or is it more about a personality match?

DuFore: It’s a bit of both. Recently, a client told me that the reason he chose us over our competitors wasn’t because of the contract or deliverables. It was because he wanted a guide — someone who wouldn’t just take his money and run. 

Clients who work with us are usually looking for that personal touch and handholding. In today’s world, I’m proud to say I’m an owner-operator. I still work closely with many of our clients, and for those who value that, we’re a great fit.

Powills: I love how you put that. At the end of the day, the intangibles are what help define a point of differentiation. There are plenty of businesses that want to franchise and plenty of people who dream of growing and exiting. Finding those intangibles is crucial.

The number of calls I get from people saying they were burned by a consultant is staggering. There has to be a better way to do due diligence in this industry because, unfortunately, there are some bad actors who will take your money and promise you the world. It’s tough, but that’s why we do conversations like this. I’m grateful you took the time to do this with me today.

DuFore: Thank you, Nick. One of the things I always come back to is content. For a lot of the content we produce, there’s no direct return on investment, but it’s about adding value to the community and helping people put their best foot forward when they’re ready to expand.

Powills: Exactly. Connecting with people and talking about things of common interest has value in itself. Tom, I’m grateful for your time today. For “Meet the Supplier,” I’m Nick Powills. Thanks for joining us.

You can watch and listen to the entire podcast on YouTube.