Franchise Evolution Partners

Lance Hood (FranPro) 0:08

Hi everyone . Today I would like you to meet Chris Neeb , Franchise Evolution Partners president of . Kris , welcome .

Kris Nieb (Franchise Evolution Partners) 0:17

Thank you for having me good afternoon .

Lance Hood (FranPro) 0:20

Kris , can you share a little bit about franchise evolution , partners and what you do ?

Kris Nieb (Franchise Evolution Partners) 0:26

Yeah , so we started the company back in 2019 with a family office based here in Colorado .

Kris Nieb (Franchise Evolution Partners) 0:33

The idea was to help them identify brands that they could ultimately acquire , help build and grow and then sell off . And as we were going through that process , what typically happens is what happens with all investment bankers and investment groups is you have a solid number in place and then they start to figure out who the fund is , who the dollars are , and then you know founders have founder syndrome , where they want a bigger number based on what they built as their baby . So what we decided to do was reverse engineer our company to go in and become more of a franchise sales organization help these brands build and grow first and then ultimately look at them for investment opportunities . So it was a very unique way to speed up a due diligence process for an investment group to understand what these guys are really like as a franchise . Or do they have good validation ? Do they pay their bills on time ? Are they building their brand the right way that we've seen successful brands build it , and we use sales as a tool to get us there .

Lance Hood (FranPro) 1:27

Right . Well , by working with them , you really know everything you need to know about the company . You really do you really do .

Kris Nieb (Franchise Evolution Partners) 1:33

It really does help and it helps them identify are these guys good people to work with ? Do we want to put an investment into their business ? So the goal is is to look for investment opportunities , but using sales to get us there .

Lance Hood (FranPro) 1:45

Right , and so tell us a little bit about like your process of helping a company like . What would that look like ?

Kris Nieb (Franchise Evolution Partners) 1:54

You know changes when we'll get brands that are brand new . They might have five , ten corporate locations open and they're just starting to get into franchising . So we help them identify the right attorneys , put their disclosure documents together , make sure they have a right operations management team in place or an ops manual , and then we ultimately help them put a budget together to help them identify how do I ? How to literally identify franchisees .

Kris Nieb (Franchise Evolution Partners) 2:17

But then we get brands that over over a hundred units that are just stuck . They've said , gosh , we've got it to a certain point , we've got a hundred locations open , we just need new blood . We need something new with new process and systems to come in place . We can help them go from 100 to 200 or 200 plus . So it's fun . I get that entrepreneur or franchise or who's brand new into the game and wants to build and grow a big business , whereas recently we've seen bigger brands approach us that say , hey , we want to get to that next level . We're kind of stuck where we are stagnant . How can we put better systems in place to get us there ? And we help them do that too .

Lance Hood (FranPro) 2:51

Right . So whether someone wants to convert into a franchise , get their franchise to the next level , or they're looking to potentially position themselves to exit at some point , it's a great opportunity .

Kris Nieb (Franchise Evolution Partners) 3:03

And we've had that example We've had it a few times where we have a brand right now they're working with that probably gets investors or private equity groups calling them once a week . We've had another brand who was just acquired by Rourke Capital last year and we're staying on board because of our systems . So it's fun to say you get the new guys that come in that want to build and grow a big business , whereas then you've got the others who have a big business , who already have that exit in place or they have an idea of that exit , and we help them get there .

Lance Hood (FranPro) 3:29

Right , and do you have some stories of some specific companies or things that you guys have helped people with specifically ?

Kris Nieb (Franchise Evolution Partners) 3:37

Yeah , let's use . You know , we just talked about work . Let's kind of work our way backwards from that . So Safe Splash , which is owned by Streamline brands , had a great system in place about a hundred plus franchisees open in multiple countries and just said , hey , we're stuck , we need a team of people to come in and help us grow bigger business faster . We came in and awarded more franchises for them in the first six months and they've ever done year over year over year , which is pretty interesting because they're so big .

Kris Nieb (Franchise Evolution Partners) 4:05

And as we started hitting different record numbers for them , they were approached by Rourke , and so Rourke came in and just said , hey , we want to put systems in place , we want to buy out the founders and keep them on for a period of time to give them their exit , because they have such a solid business model that we were able to put the right systems and sales tools in place and budgets to make sure we were helping market their business , the right way to identify franchisees and ultimately , when they were acquired , you know , typically what you see with private equity is they want to use their own systems , their own people . But they said , gosh , you guys are hitting it on all cylinders , just keep doing what you're doing for us . Now we were a little upset because of course we would have loved that opportunity to put an investment in . But when you're talking about the 800 pound gorilla investments and franchising , there's only so much you can do . So they've done incredibly well . We've hit record years , year over year . For about almost three years now . They've done a very good job with their systems .

Kris Nieb (Franchise Evolution Partners) 4:58

So it's fun that you can kind of swing that pendulum over to say , you know , on one side we're doing a lot with a group that's owned by a very large private equity group , whereas on the other side we got some younger concepts . We have a Korean barbecue concept called daeji that he's been on the food network a bunch of times . He has an incredible operation , incredible earnings opportunities that you just don't see in restaurant concepts , and he's kind of said , hey , let's , let's not grow this too fast , let's make sure I've right systems and tools in place to be responsible with my growth . Yet we've awarded the entire state of Indiana . We've had multiple units being acquired , typically every month of , not every other month , based on his budget and goals . So we're really careful to make sure they can do it the right way . But they're looking for responsible growth , just to really make sure they put the right systems in place .

Lance Hood (FranPro) 5:45

Right . Well , I've seen the item 19 on that one and it would be hard to hold it back .

Kris Nieb (Franchise Evolution Partners) 5:51

It's fun to say when you see a restaurant concept that's netting $600,000 on a $2 million top line . That's pretty impressive with very low labor , so it's a fun one to work with , that's for sure .

Lance Hood (FranPro) 6:07

What are some things that you look for in a brand ? If a brand came to you and you were going to consider working with them , what are some things that you look for in those brands ?

Kris Nieb (Franchise Evolution Partners) 6:18

You know . You really want to get to know the team really well . So we spent a lot of time really understanding who the executives are , what are their goals , what's their budget look like and can they be realistic ? We always want to see open territories right , Because that helps guys and teams and companies like ours grow and build a big business . But sometimes you got to really make sure that they have what it takes .

Kris Nieb (Franchise Evolution Partners) 6:39

We've seen companies before and we've worked with them where they say all the right stuff but then they just don't do all the right stuff .

Identifying and Preparing for Franchise Opportunities

Kris Nieb (Franchise Evolution Partners) 6:46

So we really want to identify some key points . We want to make sure that they have a great process in place . If not , we help them build that . We want to make sure they have a decent budget to pay to get there . I hate to say it that way , but it's a race and you got to spend to really build a big business . We look at their systems , we look into their validation and make sure they have happy franchisees , because that ultimately can help you grow a bigger business faster . But really getting to know the founders becomes pretty important for us because we want to . Again , we're looking for a marathon opportunity , not a sprint , and when you get to know the founders during the process of seeing if we want to work together , it really helps us identify if it is the right fit .

Lance Hood (FranPro) 7:23

Yeah , no , I can see that . Well , what would be a ? Just give us an example of the process when you talk with the company , of what you would take them through . I know you have different things that you're doing for them , but sometimes they just don't understand the process and how it works .

Kris Nieb (Franchise Evolution Partners) 7:40

You know I look at first and foremost how are they going to get a franchisee open .

Kris Nieb (Franchise Evolution Partners) 7:44

You know , from the time somebody falls in love with your concept , if they're newer or more established and they learn everything about the business , how long does it take them to get open ?

Kris Nieb (Franchise Evolution Partners) 7:51

Because all of us have been through this in this industry the minute somebody signs a franchise agreement and gives you a check , they're ready Like they don't want to think that's going to take them six , eight , 10 , 12 months to get open .

Kris Nieb (Franchise Evolution Partners) 8:02

So it's really making sure they have a good opening process for that franchisee that help work our way backwards , because then we can look at what does the education process need to be to make sure we do bring on the right types of franchisees ? So , as we're getting to know that founder , is that hey , we just want franchisees , we'll figure it out as we go type of approach , or is it we want to really make sure we're on the right type of franchisee ? So then after our 10th or 15th or 20th franchisee that's open , they're still in the system . We don't want to get them out somehow . So we do spend a lot of time really trying to understand what they're looking for and who they want as a franchisee , before we do too much into this , because it just helps us identify . You know what's this opportunity look like , short term and long term , for that franchise candidate , ultimately and more importantly , franchisee .

Lance Hood (FranPro) 8:52

And then , how long does it typically take ? So when you're gonna work with someone , you have to evaluate them , create a plan and implement that plan . How long does that typically take ?

Kris Nieb (Franchise Evolution Partners) 9:01

You know , when we look at a brand upfront , we tell them it's gonna take us 60 to 90 days to learn how to be you .

Kris Nieb (Franchise Evolution Partners) 9:07

I mean we're gonna send our team out to the corporate location or to the corporate offices to really be trained on their systems and understand what it looks like , and then that helps us build that education process to ultimately launch that brand . So email campaigns , text campaigns they're just so incredibly important to stay in age , I mean . I think people are reading text messages more than emails now . So we've got to be more effective towards what we ultimately do to build those systems first and foremost , but then ultimately , when we launch that brand , it's ensuring that we put the right lead generation strategies together for them , and that could take us another 60 days on top of that . So we are big fans of let's go ahead and under promise and over deliver on all of that . Can we deliver and start working a brand within 30 days ? 30 to 45 days , yes , but if we wanna make sure we do it right and really work our way into this , we're probably call it four to six months , just to make sure that we're often running on all cylinders .

Lance Hood (FranPro) 10:02

Right , cause I think one of the worst things you could do is to run a bunch of traffic at something that's not ready to be ramped up and replicated .

Kris Nieb (Franchise Evolution Partners) 10:11

It's tough and we all have stories of this and everybody does that you get thrown into a brand right away and all of a sudden it's one of those gosh , we don't even know what we're talking about . Yet we're reading a website at the same time that candidates reading a website , and it's not that it doesn't work and you can't use your sales process to close a deal , but it's just not genuine and it's just not honest and it just it really makes sure that you're doing it the right way on behalf of , ultimately , the candidate and the franchise , or to identify the right types of opportunities for them .

Lance Hood (FranPro) 10:39

Right , and what can a company do on their end to prepare for this opportunity to talk to you and maybe even shortcut that process on their side ?

Kris Nieb (Franchise Evolution Partners) 10:48

Yeah , it's a great question . I think that this would help anybody . It's really making sure you have education tools . You know you're seeing more and more videos that are out there talking about the concept , presenting the concept over having lots and lots of pictures of your business . Just that can be used in any kind of marketing opportunity . I think you really gotta get testimonials from your franchisees or even your customers , because people wanna know I don't live near you what's the food taste like ? I don't live near a location but I wanna know what the experience is like . So you've gotta be able to give people kind of what , something really quick , and help them understand the concept more . And I think if a franchise or comes in with videos , logos , powerpoint presentations that don't even need to have content in them , it just speeds things up . So I think the more that they can do from a marketing front , it's just gonna speed up that growth , because that's a lot of what ends up having to be put together for franchise or is upfront .

Lance Hood (FranPro) 11:37

Yep , and I've seen them not having the simple things like good , accurate pictures , like pictures of the if it's a retail space , pictures of the outside , pictures of the inside , if there's food , pictures of the food , professional pictures of the food and all that stuff , because that's what people are looking to buy , and also they'll take pictures of it before grand opening when it's completely empty and looks super expensive . And me I'm like I don't wanna look at something that looks super expensive and empty . Yeah , they didn't have pictures on opening day where there's people waiting in line and eating and the place is busy , because people are buying a busy place , not an empty place .

Kris Nieb (Franchise Evolution Partners) 12:23

And it becomes so incredibly important to see that right and I think that that's such a major piece is we all have an iPhone . We all see the commercials that we're all professional photographers . Now I still can't take a clean photo . My wife would tell you that all day long . Why are your pictures so blurry ? I don't know . I'm doing what Apple tells me , I just hit a button . But spending the resources upfront to have those pictures becomes so incredibly important because , to your point on food , someone's gotta look at a picture and say , yeah , I wanna eat that , yeah , I wanna try that , whereas we can't send barbecue in the mail , right ?

Kris Nieb (Franchise Evolution Partners) 12:53

We're not a bakery that you can send cookies overnight and then they're great the next morning , so you've gotta have something that just stands out and makes it look really nice upfront . Any retail concept same thing . It could be a gym . When we have a fitness concept that we work with , where their videos and their pictures are absolutely incredible and he has a franchising background right . So it just changed what that ultimately looked like for their concept . And even if it's home-based , it could be . And I'm looking out my window at a tree . If it's a tree service business , cut down a tree . Just the little things that just help people wrap their head around what it looks like just speeds everything up , yep .

Lance Hood (FranPro) 13:28

I agree . Well , Kris , I really appreciate the time that we had together today and I just wanna tell everybody if you wanna have a conversation with Kris and see if you're a good fit for them , they're a good fit for you . You can go here https://Franpro . vip/GoFranEvolutionPart , fill out your form and they will respond back to you ASAP .

Kris Nieb (Franchise Evolution Partners) 13:49

Perfect . Thanks , Kris . Have a great day .