fbpx

Legal Perspective For Franchise Buyers And Emerging Franchisors: Insight From A Franchise Attorney With Adam Wasch

by | Apr 9, 2024 | Podcast

Franchise Masters | Adam Wasch | Franchise Buyers

 

Adam Wasch, Founding Partner of The Franchise Firm, shares insights any emerging franchise company and franchise buyer should hear. Adam has extensive experience advising franchisors and new franchisees on the legal ins and outs to be aware of. He covers a lot in this episode.

Listen to the podcast here

 

Legal Perspective For Franchise Buyers And Emerging Franchisors: Insight From A Franchise Attorney With Adam Wasch

This episode is full of free legal advice. I’m just kidding, Adam. We’re not going to milk you for free legal advice. I’m joined by Adam Wasch. He is an experienced franchise attorney both on the franchisor side and prospective franchisee side. Adam just opened his new firm, which I’m excited to talk about. It’s called The Franchise Firm. Adam, welcome my friend. I’m glad to have you.

Thanks, Dru. Thanks for having me.

Wild Game of Franchising

How did you get into this wild game of franchising?

It’s been about a decade. I was at a big firm and decided to venture out on my own with a couple of partners, one being my dad, and my feet wet in the franchise industry through my partners, one of whom was the in-house counsel for a couple of medium-sized brands throughout the ’90s and 2000s. On my way through just learning how to be a lawyer, I started up with those guys in a start-up and emerging brand practice. I knew I could scale it as I started to learn about franchising.

I started to attend ABA forum meetings getting my feet wet and learning the playing field on which I was playing. It took a little while, but pretty quickly, I got the hang of it. I started helping both franchisees and franchisors with their respective matters in the mid-2010s. We just pretty much started to scale from there.

We grew our practice probably tenfold. We ended up representing close to 50 emerging startup brands. We launched 2 or 3 brands a month and then we sold our practice to a big firm. We decided that was not our cup of tea for a couple of years. Lo and behold, me and my partners from the big firm decided to team up and start The Franchise Firm.

You had your own firm before, went big law, and then now you’re back to your own firm.

I will take credit for coming up with the firm name, I bought the domain and started thinking about how I wanted to practice moving forward in our own way. We set up the firm. We’ve got six attorneys to start. We added a seventh and looking to grow into different markets and different specialties even as we move forward.

The launch was recent, right?

We launched in January of 2024, which feels like two decades ago. Every month, January and February, we’ve been able to even scale from where we started. Most of our clients came over from the big firm and we were able to attract others who were interested in joining a startup firm with franchise experts and maybe getting away from their big firm or joining what we were offering, which is more or less a flat fee only structure and retainer model for state registrations and services on a monthly basis.

Congratulations. I’m glad to hear it’s going well. You got Matt Margolis. Is that how you say his name?

Yeah. It’s a funny story. I started talking to Matt through social media, and Twitter and realized he lived pretty much down the street from me in South Florida. We developed a pretty good friendship. We spoke here and there about life and working at the big firm and the challenges. He was in-house at a big company and when I told him that we were about to depart and start The Franchise Firm, he was in a transition himself leaving his former company LawTrades, and was about to launch his own firm.

Matt is a really good attorney and an even better person, to be honest. He had the skillset of someone we were looking to team up with in his employment, corporate, and generalist business background. He has been a good fit for us. He’s got his own thing. We’ve got our own thing, but we are aligned together and work on a bunch of stuff together. It’s great.

He’s a good follow on Instagram. He is funny. This is the guy, for anybody reading, he cracks lawyer jokes and does puns and all kinds of stuff. He is a fun follow. He’s got some good stuff out there.

I’ll say that at the start of our relationship, that’s how I knew him too. I was following him and pretty much commenting on the things that made me crack up. It’s been great to get to know him. I spoke to him this morning about a matter we’re working on together and the sky’s the limit for what we can do together.

That’s awesome. It’s all through social media. It’s crazy how the world works.

It is crazy and I’m happy to get into that.

Go for it. What do you want to jam on around that? Did Twitter play a role in this idea of you guys getting back into your own firm with The Franchise Firm or is that something that had been in the works prior to the little community on Twitter emerged?

For me, it’s 100% yes. I’ve been on Twitter for years. At the end of the day, a few years ago, it started to ramp up on direct engagement, converting discussions into actual clients, discussions, and opportunities to present at various events and join awesome franchise people like you on shows. That’s where it started. I was seeing the potential for direct engagement and I was getting clients directly from Twitter inserting myself as the franchise legal expert on various topics and teaming up with non-franchise attorneys who were starting to send me referrals.

It started to ramp up over the last couple of years. At the big firm, I was getting probably half of my new engagements through Twitter and now I have to say it’s more than 50%. I have some great referral sources and they’ve always been there for me. I try to make it as easy as possible for people to work with me. At the big firm, there were some restrictions on that and now there are no restrictions whatsoever. I want to make it as easy as possible.

The Twitter lead sources are continuing to grow. I’m excited about it. I was nervous about taking over and Twitter converting to X and then we were all uncertain as to whether this thing was going to keep going. I was always wondering, I hope it stays strong for when I’m ready to launch my own thing,” and it’s been great.

You’re an entrepreneur. You’re a great franchise attorney and you’re a pretty darn good tweeter or whatever. I’ll never stop calling it Twitter.

Yeah, I agree and I mix it up. I try to chime in where I can add to the discussion on franchising and I also talk about my kids and family stuff. I like to promote my clients of course, but I find it to be a good tool to educate people who are not familiar with our industry because what I’m finding is that my clientele demographic is morphing into this first-time or new-to-franchise profile.

Franchise Masters | Adam Wasch | Franchise Buyers

Franchise Buyers: It’s a good tool to educate people that are not familiar with our industry.

 

It is educating people who find themselves in a franchise situation or educating people who are looking to franchise to expand their business. It’s all the same and we’re talking to people who are exploring Twitter and trying to find our niche or our little SMB franchise pocket. When they land there they’re very interested in learning more about what franchising is and possibly getting involved.

I like speaking to people who are new to franchising. I do it every day on both sides of the coin, whether it’s startup franchisors or soon-to-be. I call them pre-franchise business owners who are looking to expand or investor developers who are interested in various opportunities that are being offered by mostly emerging brands.

We’re on the same tip of the spear with that. I’ve been in the emerging brand world for years but it’s funny because I think you’ve put out some stories over your decade-plus of being in this franchise world with emerging brands and mature brands. You’ve been a part of some brands that you started working with pretty early that have gone on to do some pretty significant things. What are some of those brands that you started working with early that have done a good job of building their brand and expanding?

We started with Tropical Smoothie. We still represent the original founders of Tropical Smoothie and their various franchise endeavors. We still have good relations with those guys. The team that runs Tropical Smoothie is top-notch. We’ve worked with them consistently for many years. That’s our go-to when someone asks what brand have we worked with that has taken it to the next level. We’ve seen a lot of our clients are in that emerging stage with 0 to 25 units.

There are so many different support people out there now. Part of the goal of The Franchise Firm was to help startup brands and emerging brands get themselves out of that stage. There are so many other professionals that can work with brands post-launch like brokers, consultants, and lead gen folks. Admittedly, the industry is a little fragmented in that regard, at least to me. I feel like there’s a way to connect and help emerging brand founders get to that level where Tropical got, where Scenthound is going, and where many other brands are headed that we can help those folks and founders get there.

It’s a wild little world. We’ve been having some deep discussions, me and my partners Andrew and Dennis with Excel Franchise Development, which is our new little firm, which we’re going to be helping young brands expand in a crawl, walk, and run approach. It’s funny because no brand is perfect. I think no matter how you slice and dice this from the franchisor perspective and even probably from some of those early franchisee perspectives, it gets a little messy.

You start to expand. Things break. You don’t know maybe where they’re going to break after somebody has four good corporate units open, for example, and people start to replicate their success. There’s going to be a learning curve, which is why we put a lot of weight on that crawling phase, that incubation phase first to figure out what’s going to break and stuff like that.

However, it’s interesting because I don’t know if it’s an emerging thing. I’d be interested in your take on this. It seems like more and more brands are skipping that incubation phase of getting a couple of franchisees close to home under their belt. Working through the kinks, over-supporting those franchisees, doing whatever they can to make them super successful, and then getting that foundation upon which to grow. Is that me being a little paranoid or are you seeing that as an emerging thing as well in our world?

I’m with you. I am a big proponent of early organic growth, making sure you have the perfect franchisee in your system to start to open to make sure that they’re successful, feel supported, and then become your best salesperson. I think that that’s more of the traditional way of growing a franchise brand. We are probably on the same wavelength there. What I’m seeing and what you’re probably seeing are brands that probably are not necessarily ready to contact that franchise sales organization or do a full-on nationwide blitz.

They think that they can just go all out right off the bat and I’m all for it if there’s the capital and there’s the ability to scale up quickly but I do agree with you that if you have 1 or 2 corporate units that maybe have been open for a year maybe or a year plus. I think it is a risky game for the franchisor to basically start out and do a full-on nationwide sales blitz. That’s my opinion and I think a lot of folks think that they’re going to do that.

It's a risky game for the franchise to just basically start out and do a full-on nationwide sales blitz. Click To Tweet

It’s the way it used to be. We’re old-timers now, Adam. We’re saying, “That’s the way it used to be in franchising.” Now, it’s getting a little different.

Now, we’re into responsible franchising and making sure that our franchisees are the right fit for our system and we’re not just selling to anybody. I always tell franchisor clients that you are vetting the franchisee as much as the franchisee is vetting you. I can’t tell you how many of my clients have had struggles with their first few franchisees because they didn’t understand the demographic or the skillset that would make for a successful franchisee. I think it’s super important and the best brands that have been successful under my watch have been methodical, careful, and thoughtful in their sales process to start.

Good Operating Procedures

Sometimes you just don’t know how a franchisee is going to perform when it comes to game time but there are always indicators. The mutual evaluation process, and how they behave during that process is usually a pretty good indicator that if things start to emerge as potential red flags, they could carry forward into when they become an operator. I think all these brands are chasing that PE money. At the end of the day, that’s what I think is happening, which is fine.

Franchise Masters | Adam Wasch | Franchise Buyers

Franchise Buyers: At the end of the day, all these brands are chasing that PE money.

 

PE can be a great thing. There is this book called Big Money in Franchising. I talked to Alicia Miller, the author of this book. She highlights Tropical Smoothie as a positive case study and how PE can help founders. If a founder gets their business to a certain level and hits that ceiling but the business has a lot more potential, PE can be a great thing to come in and help unlock that potential with capital, resources, guidance, and all kinds of stuff.

I say these brands are chasing the PE money. It can be a good thing for everybody in the system, including the franchisees and that’s when it’s done well. I think these emerging brands, some of them feel like they’re cooking up business models that maybe they could bake a little bit longer before they start going national and stuff like that but it’s their business.

What I’m seeing is for the franchisor that launches its program and sells a few units. I’m seeing maybe private equity light firms and franchise hold codes knocking on the door earlier than ever. Everyone’s got $5 to $10 million to spend and doesn’t know where to spend it. It is not necessarily taking control, but it’s certainly potentially an injection of capital for the brand to take off. What would be interesting is to try to come up with some form of marketplace for that but I am seeing deals happen a lot earlier than they used to, especially with service brands, which is a very hot sector.

We can chat about that and how gangbusters and a lot of commercial and residential home services franchises are selling right now. I’m finding with the smaller mom-and-pop companies that are coming to me to the franchise, almost immediately I’m able to find them someone that they can speak to about a potential acquisition in the hold co., horsepower, or of brands and all those companies that are developing various residential and commercial services brands underneath their watch.

Home Services

Let me ask you this. Do you think that that whole home services thing is new? I feel like it’s been around. It just maybe hasn’t made its way. It means that home services have always been an interesting category in franchising. Math can be attractive in a business like that. You get into them for a lot cheaper. They have the ability to become big businesses with circa Pro Painters and the eighteen restoration companies that were around before the eighteen that are now franchising. There were always OGs in these spaces but do you feel like it’s different now or it’s just getting more attention in a mainstream kind of way?

I think it’s getting more attention. Also, the way in which it’s packaged, to investors looking for boring businesses that are searching in the small business space but finding trouble locking down deals because there are so many different potential buyers that it is a struggle to find value and a deal for a boring business. Where are those folks going? They’re looking around and they’re seeing the boring business packaged in a way that they can get into a franchise that they can invest their money and not have to at least the way it is being sold, they’re not wearing the painting shirt, and having to go to people’s homes and knock on doors.

It’s being sold in a way as if they were buying a regular business, but it’s now a franchise. I think there are a lot of investors now in our space that were never intentioned to be in our space, but because of the lack of deals, they’re finding their way into the workspace. They’re finding home services as an easy way to get in because there’s no ten-year heavy lease. The initial investment is lower. The packaging of these new brands is sexier.

It’s semi-absentee, right?

Yeah. There are a lot of buzzwords I hear in my daily chats.

What’s your take? You’ve been around for a long time. I have. I have an interesting take on this one. With home service specifically, have you seen it done successfully where someone has come in as the “CEO” from day one which means hiring a GM to help you build the business? Do you see that being done successfully or executed well, I should say on the franchisee side?

Yeah, I have. I think it takes a certain personality type. I think it takes someone who’s familiar with running a small business or running a team. It takes people skills, but I do have clients who are multi-territory developers in emerging brands that are selling pretty fast and are finding success. I would hear about it if it was a complete flop. So far, so good, and I’m keeping my fingers crossed. I don’t have any issues but the reality of it is the investment is lower than what they were intending to pay to buy a business.

They’re able to start out in a territory that is undeveloped so they can set up their own team. I think from a support perspective, what I’ve seen is there is a little bit more emphasis on helping the developer set up that team. Instead of a hands-off relationship, I think there’s an obvious need for folks who aren’t laborers in the trades or aren’t in the construction-type industry, especially for painting, window installation, spray foam, or anything that would require a skilled subcontractor.

I think it’s helping to find those skilled folks to perform the job. It’s helping find that manager who can run it. If those people are in place, the sky’s the limit. It’s where that all breaks down and I don’t know what the answer is. I tell my clients who are looking at these brands. I’m like, “What happens if your manager up and quits on you? Are you prepared to put on the shirt, go to someone’s house, and sign up for a job?” I like to hear a yes. I like to hear that this person is prepared to do whatever it takes to make it work.

It's finding those skilled folks to perform the jobs and that manager that you know can run it. And if those people are in place, the sky's the limit. Click To Tweet

It’s when I hear no that makes it, “Yeah. You may not be the right fit for this particular model,” because if you’re not willing to do that and it’s either beneath you or you don’t think it’s part of your job as a franchisee or that you can be absentee or that this is a passive opportunity, I think those folks are the ones who are going to struggle with the “investor model” that I’m hearing so much about.

I’m with you. I think you have to have grit no matter what “model” you come in with. Things are going to break. People are going to quit. You have to be willing to fill the gaps, step in, and learn the business too so you can run it better. I don’t think anybody’s cracked the code on the whole passive investor model. I know people are trying, but I’ve heard all kinds of things about that. I don’t think franchising sets up well initially to get the first 1 or 2 units open.

Once you become a large-size operator, then you can afford to hire a management team and have a lot more flexibility. When I get calls from people who say, “Dru, I’m looking for an absentee passive investing opportunity.” I’m like, “I can’t help you. Talk to you later. I’m sorry. I wish I had a different answer for you, but I don’t.”

To that point, I tell my clients that investor developers are looking at different brands. The way it’s being packaged and sold to you is there’s some disconnect with the way that I’m hearing about the sales presentations and what is in the franchise agreement. The franchise agreement is what is going to govern the franchisee-franchisor relationship. I’m not going to name names, but I tell people that the word investor model is nowhere to be found if I search it in a 225-page document.

What people get when they hire a good franchise attorney to help them with due diligence is that cold dose of reality. One shoulder’s the sales folks the other shoulder’s the me. It also helps them understand the relationship, what it could be, and the pros, cons, and risks. I always find it curious when there’s a presentation provided or a marketing pitch or sales pitch that is disconnected from the actual obligations and relationships.

Just a cautionary tale for some investors and certainly, if you’re being sold on a turnkey or on an investor model or passive investment like you said, it doesn’t exist. You need to be involved in the operation in some way, shape, or form, whether it’s on the supervisory side, the management side, or even the operational side.

Number one, hire a good franchise attorney like Adam if you’re a post-discovery day or you’ve been approved, and most importantly you’ve talked to a bunch of franchisees. It’s because by talking to a bunch of existing franchisees, you can get a sense of the reality of how everything that you’re being presented with is playing out. Ideally, you want to talk to a lot of franchisees that are having success with the business and the franchise, especially under the model that you’re being uh, presented to.

What’s your take on these whole Item 19s which feels like the Wild Wild West in terms of what some companies choose to disclose, which some companies choose not to disclose, or how they present these numbers? What is the general take from a legal perspective on Item 19s and how do franchise companies need to present this information?

We at The Franchise Firm represent close to 100 franchise brands. We’re dealing with item 19s from the franchisor’s perspective and the franchisee’s perspective when we’re reviewing them. I’m of the opinion that the more data you can include, the better. There is a group of industry professionals that feel like if you only have 1 unit or 2 units providing an item 19 is inherently risky. They would advise their clients to not share any data.

Franchise Masters | Adam Wasch | Franchise Buyers

Franchise Buyers: The more data you can include, the better.

 

I find that to be even more risky because we all know what the first question that a franchisee prospect is going to ask and we know what a salesperson’s job is to sell franchises. There’s that risk of providing that information outside of the FDD that is going to potentially sink a startup or an emerging brand by committing multiple financial performance representation violations.

When I counsel a client, I say, “How would you want to sell this brand? What are the numbers? How can we include it in item 19 that would make it meaningful for a franchisee to review?” Also, understand at least the potential of what a franchise could do, but with advising that this is not a representation of necessarily what you could do, but it is the historical truth as to what occurred with our corporate units or with our first few franchisees. If it is truthful and accurate, and you can back it up with data, then include it. I think that is going to transition with my outlook on item 19.

Excel Franchise Development

I’m with you. We’re talking to so many brands right now with Excel Franchise Development. Item 19 is a big topic of conversation because if you want to be able to talk numbers, it has to be in Item 19. If you don’t put it in Item 19, then it doesn’t give the sales team the ability to talk numbers, which then limits the potential there to be able to connect with the right type of franchisees and help them understand the numbers.

I feel like, number one, the numbers need to be profitable. If they’re not profitable, you should not be franchising your business. Number two, the more transparent you are and I see it assuming that the numbers are good, not great maybe, but the more transparent you are with as much information as you can provide and hopefully, it’s full P&L level data, that’s the best way to go about it.

The numbers need to be profitable if they're not profitable, you should not be franchising your business. Click To Tweet

I see it nowadays that the prospective franchisees react in a much more positive way because they have access to the elephant-in-the-room data. It’s not behind a lock and key and people can see it. It can also help set better expectations especially early on with the existing franchisees of what they’re getting into. Even if the numbers aren’t great, they’re good. You will find the right franchisees that know what they’re going to get into and maybe they can’t hit what they want to hit with one unit.

Maybe they need to open multiple units. At least, they’re coming in as eyes wide open as possible with the one expectation that probably becomes the biggest issue in franchising and it’s around the financial performance of the franchisees. It’s interesting. Why do these big firms say don’t do it? It’s always the big firms that say that, isn’t it?

Yeah. I’ve heard it and I’ve heard from franchisors that are in the startup and emerging space that come to me for a second opinion or to get my take on their FDD. I’m looking at item 19 and I’m like, “You have a few units. How bad is it?” We do not make any representations and they’re telling me, “We’re profitable.” I’m like, “So what are we doing here? Why is your data not in item 19?” It’s like, “We got advice from some consultant or professional who said that it was too risky for us.”

I’m thinking to myself, “Is it too risky for the brand or for the drafter of the FDD who is nervous about their own tide?” It’s because as long as you have the financial statements to back up what you’re putting in your item 19, that’s the requirement. Put it in. I’ve been able to help brands go from that first stage where they’re working maybe with a consultant that doesn’t have the kind of legal expertise or legal background and being able to convert a couple of clients giving them that single opinion that there’s no harm or risk as long as you can back up the numbers.

One test case that I always tell people is there’s a brand called Restore, which got a huge investment from a family office and they started with a P&L in 2016 or ’17 with a single store that showed a $40,000 net income. If I would’ve invested back then, but it is what it is. They were transparent about their location and what it could do. Over time, it gets better and now they get a humongous investment a few years later because they’ve got over 100 units sold or opened.

I’d rather be transparent. I’d rather be open because on the other side when I’m advising a client who is investing in a brand that maybe has a few franchisees, maybe has a couple of corporate units open and they don’t have any item 19, you have to default to the fact that this is not doing well. It’s like, “How else can you get the data?” You can try to get it from franchisees. You can try to poke and prod the salespeople to give you something that maybe they shouldn’t. Once they do that, tease up a potential issue. I say it’s you get out of jail free card.

If you’re an emerging brand or if you’re a prospective franchisee, this is the value of talking to multiple people because you get opinions. That’s what we all offer as opinions based on experience and you have a more legal grounding in a lot of your opinions, but everybody has a different opinion about franchising, what a good brand is, or this whole investor model versus operator model, or that kind of thing.

It’s all opinion, but I think the good advice is teaching people how to go about finding the answers for themselves and then making the best decision for them personally, their business, whatever it may be. It blows my mind how I see these emerging brands come online and they go through all this work. They pay an attorney like you a decent amount of money and they get up to the start line. They’re like, “Great. Let’s franchise.” They look around a little bit. “Now, what?” I was like, “If you don’t have an item 19, you’re not getting off the starting block. It’s going to be a hard long sludge of a process. We can hammer item 19.

I’m trying to avoid that now with what I’m doing here because I want my clients to feel like they are empowered to get out of that starting block, feel good about it, and not just stall out. I’ve seen it happen way too much over the years with startup brands undercapitalized. Maybe not understanding that franchising is a completely different business than what they were doing before or what their operator hat has them doing. Teaming them up with the right people like you and others that can help them get out of that starting gate.

Even when you get out of the starting gate, it’s still a long game. It’s still a 3, 4, or 5-year build to get to that mountaintop of royalty self-sufficiency. It can be amazing and the reality is very few companies get there. It’s the small minority of franchise companies that make it to that mountaintop, which is fine. I think there are a lot of regional franchises that want to stay regional and that’s cool. Some brands aren’t kind of built for more national growth but it’s not easy. What are some of the trends that you’re seeing with activity coming across your desk these days?

There are a lot of home service brands almost daily. I like some to be on the riskier side.

How do you size up a brand to be on the riskier side without obviously naming brands, but stuff that you look at that makes you think like that?

The lack of brand awareness is certainly an issue with service brands. I talk to people a lot about where they’re planning to open and whether Green’s Lawn Care moves the needle any more than Yellow’s Lawn Care. When you get into a startup and emerging brand, you’re not paying any less because you’re paying as if you’re buying a US Lawns or a giant company that people may have heard of. Early brands for, I have to size up and see the management team. Also, make sure that they’ve got some franchise scaling experience. I always look to that. Some show up right off the bat with some litigation, which is a little bit problematic in my head. I’m going through an FDD review. I move into item 5, and we’re like, “Whoa.”

Yeah. I will say, “We’re on item 3 right now.”

The Franchise Competition

Look at that giant initial fee and then all the startup costs that are going to be coming out of pocket right off the bat. Also, how does a franchise brand with all these fees compete with the mom-and-pop brands that are in your market that don’t have the same fees and may be able to charge less and you’re competing with the same folks for jobs? Certain brands have a higher initial investment. There may be some form of licensure that’s required in certain markets.

I had a client let me know that they were not proceeding with the brand, not because of any of the risks that I advised, but because of a thoughtful discussion on what it’s going to take to get licensed in their jurisdiction for home service brand and the timing of that. It’s not being accounted for with the non-refundable initial fee and the front costs that are going to become due no matter what after a certain period of time.

That timeline wasn’t thought about with the franchisor and they weren’t set up to alleviate those risks. Some brands I know aren’t negotiating, some are. I appreciate the brands that I’m dealing with for my clients that will minimize that downside risk in case franchising isn’t for the new franchise investor. It’s not like the initial upfront costs are the only thing at risk. It’s potentially the entire ten years of the contract with that downside risk being lost, royalties, lost profits, and potentially more financial risk than initially anticipated.

Some brands are starting out with a certain negotiation strategy and as they ramp up as is common, they’re a little bit more tight and restrictive on the negotiating. I’ve done a lot of work with a lot of home service brands so I have an internal gauge of which ones I feel good about and which ones I don’t. There are plenty of other concepts out there that I think are doing a nice job. I’ve got a few clients in the emerging space and education. There’s a lot of interest in after-school and kids services after school, sports after school, and educational opportunities.

I think those are generally valuable and will maintain their value. You’ll be able to trade them down the line. Also, pet care has been my soft spot for a long time. I have been involved with Scenthound as I mentioned for a long time and a few others coming online. They’re on the cusp of blowing it up and one being a dog drop and then a few other dog wellness or treating dogs like family members.

Kids and pets are like kids and puppies.

Kids and puppies are a good sector.

Kids, puppies, houses, and then taking care of yourself with health and wellness. I see the same thing.

Also, take care of yourself. I’m a member of a sauna and cold plunge. It’s a new newer brand because I wanted to try it for myself. I have a few developer clients that are growing in various parts of the country and I love it. I’m a big fan of the sauna cold plunge and general wellness concepts as well. Also, fitness too.

All non-food, my friend. That’s the non-food side.

I do food too.

No offense to your food clients. I didn’t mean to offend your food clients.

I was going to say one of my most thoughtful, organically grown clients stuck to Florida where I’m based emanated from a single shop out of Jupiter, Florida. They’ve just wanted one here and one there. They are making sure the franchisees are happy. They are getting through some struggles with the initial franchisees or franchisees that maybe weren’t the right demographic.

Figuring out who their franchisee targets should be and getting to a point where they’re very happy after 7, 8 years with like 30 open locations. Valuation looks good and now, they’re ready to take on that maybe mini-PE firm that is going to come in and potentially take them to the next level. I’m all for that organic growth and that is a food concept I do food too, but probably more than half are non-food concepts.

If you’re an emerging franchisor, an established franchisor, or a mature franchisor and you want good legal advice, call Adam Wasch at The Franchise Firm. I’ve just finished Saul Goodman or Better Call Saul. I feel like I was just doing an ad there when I was talking there.

You won’t find me on a billboard anytime soon but I feel pretty good about my website. You can find me on Twitter as well.

What is your website?

The website is TheFranchiseFirm.com. My Twitter handle is @AdamGWaschEsq. That’s where I live. I pretty much breathe sleep franchise and kid sports. When you won’t find me at my desk, you can find me at the field or the courts where I watch my three boys play. It is the joy of my life to be out there with them and coach them. I say it gets me away from my desk, but when their practice is over, I’m back to my desk getting work done for my clients.

Congratulations on the successful launch of the franchise firm. I have no doubt you guys are going to get to where you want to get. Thank you for joining us.

I appreciate it, Dru. Thank you.

 

Important Links

 

About Adam Wasch

Franchise Masters | Adam Wasch | Franchise BuyersAdam is a Franchise Times Legal Eagle with an active franchise practice in all facets of franchise law including full-service franchisor representation, startup franchising, franchise M&A, and assisting franchise searchers with FDD reviews, due diligence and negotiation. When not in the office, Adam spends the majority of his time with his wife and 3 boys at the sports field where he coaches and serves as a community volunteer.

 

 

The First Step is a Conversation.

If you have that burning desire to build your own successful business so you can live a life you can only have working for yourself, let’s talk.

The First Step is a Conversation

The first step is a pretty simple one: We have a conversation.

After we speak, we’ll be able to figure out if there is a good fit to work together.