Transcript of How to Build a Franchise Empire Without Starting From Scratch New

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00:00:00

Most people think franchising means buying a burger joint. They are wrong. My guest today took a 36-year-old power washing company in northern Pennsylvania, franchised it from scratch, and scaled it to 352 locations across 37 states. He did not wait for permission. He did not start from zero. He acquired the proven machine, systemized it, and let other operators plug in and run. Aaron Harper figured out something most founders miss. The fastest path to scale is not building something new. It is replicating something that already works. Today we are talking about franchise through acquisition, how to de-risk a business without killing the upside, and what it actually takes to execute when no one is watching. If you have ever thought about owning a business, building a business, or scaling without burning your life down, This episode is for you. Let's unlock it.

00:01:04

So Aaron, I mean, just before the show, you were— we were discussing about essentially how you become this master in franchises and building a franchise and being able to sell them through brokers. Before we really get into it, tell me, tell us a little bit of like, who's Aaron Harper? Like, where do you come from and how did you even land in this place you are today?

00:01:24

Well, thanks for having me on. I'm excited to be here and talking with you today. Yeah, I'm from Southern California. I didn't grow up wanting to be in the franchise industry. In fact, I didn't even know what that meant. I actually wanted to be like a Hollywood agent. So I went to Hollywood and I, after college, I literally worked in like at the agencies and like thought I wanted to like be Ari Gold. If you've watched Entourage.

00:01:48

Yeah, one of my favorite shows. I love it.

00:01:51

It's such a good show.

00:01:51

It's so good.

00:01:52

Yeah.

00:01:52

Yeah.

00:01:52

So I thought I wanted to be Ari Gold.

00:01:55

And then I was like, wait, this is like a miserable existence and I don't enjoy this at all. So yeah, I had a friend that worked in franchise development and he goes, you should get into franchise development. And I was like, what's that? You know, I think like many people who hear the word franchise, they think McDonald's, Wendy's, Chick-fil-A. And I was like, dude, I don't really want to like build fast food joints. And he's like, No, like, that's not what I do at all. And, and I was like, well, what is it? And he goes, well, you know, 1-800-GOT-JUNK is a franchise, and Two Men and a Truck is a franchise, and Mr. Rooter is a franchise, and Chem-Dry is a franchise. And I was like, oh. And then I didn't know that, like, franchisees were independent business owners. Like, I had no idea.

00:02:42

Okay.

00:02:43

And I didn't know that they owned 100% of their locations that they bought. Like, so, like, for— I didn't know McDonald's wasn't, like, corporate. It's like an actual person who owns McDonald's. Like, I had no clue. And, um, and I, you know, I think I'm like a pretty generally smart person and like had no clue, literally no clue. Um, but the idea of helping people become business owners was like, oh, I can march behind that forever. Like, that's a great thing. And so I emailed his boss every 3 weeks until he hired me, um, basically. And, um, and then ended up working in a car— at a carpet cleaning franchise, and I grew that by about 200, locations in 3 years. Um, and then I got on a drywall repair franchise as an employee. I grew that from 98 locations to 323, locations in about 23 months. Um, and then I was like, wait, I can do this on my own. Turned down a million-dollar offer to keep doing what I was doing. Um, and, uh, and raised capital and, um, looked at a bunch of different businesses to franchise across the country. And I, found a 30, now 36-year-old power washing company called Rolling Suds based in northern Pennsylvania.

00:03:58

Great family business, good bones. Knew I could replicate it anywhere. Acquired the brand, invested my own money, and I'm the majority shareholder in Rolling Suds franchise that was not a franchise. So I created an entirely new company and franchised a business that's been around for 36 years. And we've since grown from a single location power washing business in northern Pennsylvania to, we have, by the end of this week, we'll have 352 units operating in 37 states across the country. Wow.

00:04:33

So many questions. And first and foremost, I mean, congratulations on all of that success. As much as I want to go back to the first part, the Ari Gold part, and, you know, out of my own wonder, like, what was— why did you hate it so much? Or what was it, you know, obviously glorified, you know, Ari Gold, but like, what was it really back then that it just wasn't for me?

00:04:56

It just like— so Los Angeles is— it's a very— the, the Hollywood industry is about like every kind of thing you think it is and worse. Um, like, it's just very vapid and like It's also hard to like measure in terms of like, you're like, what parties can you get into? Who can you get on the phone? Who can you sit down with for lunch? And everyone's trying to like get up one on each other. So there's a lot of like fakeness. And, and I loved the like systems in Hollywood, which is like, this is how we build great, great movies and great TV shows. But the way it kind of like operated really just didn't give me joy. And I was looking at my boss and I was like, I don't want anything that you have. Like, yeah, at all. Like, wow.

00:05:44

Well, that's a good indicator. Yeah. Yeah. That's interesting. So you got into the franchise world, and it's funny, you know, you just naturally think, you said, you know, when people think franchise, you definitely McDonald's, Burger King, right? Ever fast food. But there are so many different franchises out there. What was interesting that you said is you don't need to start a franchise from scratch. You can take a good, what I kind of heard was a mom-and-pop shop that has a structure. Yep. And then look at it as a franchise. Let's just discuss that. If someone was sitting there thinking, oh shit, how do I, A, franchise my own thing, or how do I get into this world? What would we say to them and how can we support them?

00:06:32

Yeah. Like, there are basically two businesses every time you franchise a company. There is the core business and then there's the franchise business. And running two businesses at the same time is very difficult. So I think the best thing to do is to have someone who owns and runs the franchise business and someone who owns and runs successfully the original location or locations. I think where a lot of people get in trouble is they're like, I'm going to try this franchising thing on the side while I continue to run my power washing business, and we'll see if the franchising thing picks up and makes sense. And then they're like doing a startup while still running their normal business, and then they're convincing other people to come in and start startups underneath their part-time startup. And it's like, this just doesn't— it's not going to work, like, frankly. And so what I I knew that going into it because my background is in the franchise industry. So I was like, hey, I'll find a great business. They can keep running and owning and operating their business. This new business, which is the franchise business, will acquire the systems, processes, trademarks, franchise rights, everything that has or will be created from a systems perspective by that business.

00:07:48

And then we'll franchise it. Yeah, I call it franchise through acquisition. Just like you've heard entrepreneurship through acquisition. Like, it's like, keep your great business. I actually love it so much. I want you to keep running it. I'm going to— I love it so much. I'm going to replicate it hundreds of times across the country and get other people who are going to open those locations to believe in your business as much as I do. And it's really the same thing that Ray Kroc did with McDonald's.

00:08:16

Yeah, yeah, absolutely. Which is a great movie. That was a great founder. Such a great movie. How are those deals? I'm just interested how those deals structured usually then? Because if you're going to go to the mom and pop, I have, like, let's say I have the car washing business or whatever, the power washing business here in my hometown, right? And I just have a system. It's good. I figured out the marketing. I figured out, you know, how to hire the right people, how to train them, how to get people bought in, all the things of a good business has. You come along and say, hey, I don't want to mess with this business. This is your baby. You've done the hard work. I want to replicate your business. I'm going to go do that. So I need to learn everything, obviously, and digest how you've done this. But then I'm going to go replicate. I love what you said, go to other people who are just invested as I am in this and believe in this and sell it themselves. That becomes the franchisee, right? Becomes the franchisee. How are those deals structured? Like, am I now a partner with you 50/50?

00:09:19

Am I only getting a little bit, 10%? How does that work?

00:09:22

You're getting a minority share in the company because it's a company that really you don't— you didn't have before. And now, now it's like you've got your great company that you built and I'm going to go and put everything on the line to build this company. I'm going to put all my money in. I'm going to raise all the capital. I'm going to take all the risk. I'm going to run the whole thing. And I'm going to give you a piece of that company. And so all that person is doing is basically just saying, oh yeah, I'm never going to franchise my business. Like, I don't know how to do that. It's going to cost millions and millions of dollars, literally millions of dollars to franchise a business. And like, why don't I just keep running my great business? But, you know, we would, we would come up to, we'd talk to some people and they'd be like, well, I'm going to franchise it. I'd be like, great. Like you have no, no use for me. Like, I'm, I'm literally the franchisee. I'm going to franchise a business in this space. And the problem is, is that it's a completely new business that they don't know how to start.

00:10:23

Like, it's very— it's a very difficult business, franchising in general.

00:10:29

But there's an art to it.

00:10:30

There is a good— it's an art, science. There's like politics, there's like legal, there's so many like regulations around it. Like, it's just like it's a very difficult business. And it really, you need to get 100 open units for the model to really even fundamentally make sense.

00:10:44

And only about 100 units, you're like 100 different, like let's say, locations or businesses for it to actually become a successful franchise.

00:10:56

100. Only 16% of all franchises get to 100 units.

00:11:01

Yeah.

00:11:01

Wow. So it's like, it's a very slim chance it's going to work out for your average person who's never done this before. And so the way to make it work is to have someone who's fully invested, majority owner, putting everything on the line to make the brand work, and then someone who's fully invested in their location, making sure that that becomes the replicable model for all the franchisees that are buying in. And unfortunately, that structure doesn't happen all the time when it comes to franchising because it's a guy who has a great milkshake business who's like, I'm gonna franchise my milkshake business, and he's good at making milkshakes. He's not good at building a franchisor, right? Um, and so anyways, that, that's the way we've done it. And the, the original founders of, of, uh, Rolling Suds are involved helping franchisees grow their businesses. They still own 100% of their business. They've launched a truck manufacturing business that sells into the franchisees, so they've achieved additional upside above and beyond what they went to. And this will be a— it's been a tremendously life-changing experience for them.

00:12:12

Oh, I can only imagine. I mean, they're sitting there, I don't— you know, they're just sitting there in their little hometown thinking they got a little business, and then up comes Aaron himself, the Mr. Franchisee over here, and changes their life. I think it's fantastic, and I absolutely love it. You've mentioned you've done it now 3 times successfully. Uh, how many did you have to fail to get to the 3 big ones?

00:12:38

You know, I, um, I was fortunate that I got to watch the company I was working for make a bunch of mistakes, um, and learn from those mistakes as an employee, um, before ever launching my own thing. So in those other 2 brands that I mentioned, I was a very well-paid employee that kind of helped one kind of individual department grow, observed all of these other departments and how they either worked together well or didn't work together well. And in my mind, I archityped what a good franchise brand looks like if I'm the one making all the decisions. And so the only really bet that I've made in terms of like going out on my own and becoming an entrepreneur is on Rolling Suds. And we have had a good amount of success.

00:13:36

You're batting pretty damn well here, batting 100% from what it sounds like.

00:13:43

I know when to get out of the way and I know when to put people in place. And we have a great CEO that runs the company and I sit on the board and we've just scaled rapidly and I think we've done it to the best of our ability the right way.

00:13:58

Yeah, it sure sounds like that. So I would just say if someone's thinking about this, like, how is there telltales of like how you pick your winners or losers, or is it— is there not? I'm sure there must be an art to that as well.

00:14:11

Um, so a franchise brand is dependent upon the franchisees that come into the brand, the people who are buying the locations. And their willingness to execute on the model and, um, and be team players and go out and, um, grow their local businesses, right? Like, I don't have a business unless we have franchisees in their markets growing their locations and paying royalties. And that's how the model works, right? Like, you have to— and so What we're obsessed with is how do we increase the cash-on-cash return for the franchisees that come in and open this business for $350,000 or $400,000 to get started, right? So how do we help them get to a point where their investment makes sense faster? And so the entire time that we've been running this company, it's always how do we condense the path to profitability and return because, and so you basically, you create systems, you tweak the systems, you better the systems, and then that time and time just continues to get more and more compressed. When you launch a brand and you have your first ever franchise training, you have no clue how long it's going to take.

00:15:34

You have ideas, but like up to the franchisees to execute, like truly. And so now we have 100 and 36 trucks on the road in 37 states owned by franchisees that have 2, 3, in some cases 4 or 5 or 6 trucks. Yeah. And, um, and they have scaled their businesses. And we've continued to invest pretty much every single dollar that we've, uh, gotten back into increasing systems to continually condense that time frame such that we have franchisees now that launch and they have contracts booked before they go to training. Like, literally.

00:16:14

Wow.

00:16:15

We got them contracts. All they had to do was buy into the brand, exist, breathe, like, and then they got this work. And interesting, because we've invested significantly into resources for national accounts to, to generate business for franchisees before they even open.

00:16:36

So one of the things you said I thought was very important, it makes sense, is The people who are purchasing the franchise, they have to be the right people. Yeah, because they can purchase the franchise, but if they're not going to do the work, it can actually wreck also the brand and what happens upstream. How do you find the right people? How do you know they're the right people? Where are these people?

00:17:01

So this is probably the hardest thing for most franchisors who don't have experience in franchise sales to do. They don't know who to identify, where to find them, how much they need to pay to acquire them. Like, it's a whole business, literally. And my experience in franchise development, which is franchise sales, that was what I did. Like, I— those 300, I guess it would be 450 units that I sold before I launched Rolling Suds for two different brands. I did every single— I awarded every single one of those units myself. So every franchisee that bought that, those territories, I talked to them from the time that they were introduced to the time that they closed the deal before they go to the operations team. Okay, that's literally my background. I'm in franchising. That's how I got started. That's what I know. So we are fortunate to work with some incredible franchise brokers in the space. Um, and so for those who don't know, a franchise broker is like a real estate agent for franchises. So you go to them, you say, hey, my investment level is $250,000, I'm industry agnostic, but I like senior care and home services.

00:18:16

And then the franchise broker then knows brands and presents them 3 options. And then the franchise broker is compensated when the deal closes. We pay them a portion of the fee that we're paid by the franchisee. And so when I had done two brands prior to this one, the franchise brokers that I know and that they trust me, they're like, Aaron, I'll sell whatever you want me to sell. Like, I know that you're going to A, close deals, and B, support franchisees in a way that makes me look great. And so whatever you're attached to, I'm in. And so part of the reason I decided to leave the company I was working at, even though I was literally going to make 7 figures by staying at that company annually, was because, A, I didn't have any upside in that business that I was going to grow for them.

00:19:07

Yeah.

00:19:08

And B, I was de-risked because the franchise brokers that I'm close with would go with me to any brand because they've known me before I had kids. Like, we've known each other for years.

00:19:20

Yeah.

00:19:20

And so if and when we ever do Rolling Suds version 2, but a different industry, I can go to those same— I mean, these are hundreds of brokers across the industry and they'll say, Aaron, I trust you, let's, let's rock. And we can get 100, 200 units on the road and open relatively quickly comparatively to someone who didn't have any experience in franchising or franchise sales.

00:19:50

So I'm hearing a couple of things here. I think it's very important for people that they're going, well, what's it in for me? Well, first and foremost, you have some relationship equity, it seems like, with the right people that can help really speed up the time of getting the right people in the door to buy the franchises. And then those right people are the ones that are going to implement the franchise fast. So as long as you have the system, you have the people to implement the system for.

00:20:15

Yep.

00:20:17

And we're here. You might as well. Let's talk about your car wash. Sorry, the wash, power washing, uh, uh, business, because it, you said some interesting things that I thought was, wow, that's pretty powerful. If I'm sitting here and we, I mean, I hate to be the guy that's gloom, doom and gloom, but like, there's a lot of people in America right now and you know, that don't have jobs that are looking or looking for ways out, trying to figure out how to create additional income, trying to figure out how to create maybe some legacy for themselves. From sounds of what I'm hearing you say, like franchisee is probably, is one, is a great way for doing that. Whether you're, you have a strong business yourself and you don't have that family member you want to sell it to, or the son that you, or that your parents, your kids don't want to take it over. There's an opportunity here where maybe you can franchise that, obviously depending on the business and what that is. But there's another huge opportunity specifically with you where it's where you said people were already getting their first contracts before they even had the business set up.

00:21:19

Like, I'm assuming it's because you guys figured out a very unique way of creating demand for such thing online that allows people to raise their hand and say, I'm interested. Is that correct? And that's the system you're talking about?

00:21:34

Basically. Yeah. So I'll address kind of both things that you said. So, franchising, whether you're a franchisor or franchisee— meaning I'm a franchisor and the people that buy into the franchise system are franchisees. So whether you go and franchise a business or become a franchisee of a business, it's one of the best ways to create wealth, I think, that is underserved and under— and unknown by, by most people. Because you could take $200 grand and put it in the S&P $500,000 and it will grow annually at a certain percentage. But if you put $200,000 into a business that you own and operate every day, you could have a 20 to 100x return on that over a period of time growing a company. And where most business owners don't have— most people who start businesses, they don't have some great idea. Like, there's like You don't need to have like be Mark Zuckerberg or Elon Musk. Like that's like the 0.0000001%. Like you just need to do something ordinary but do it exceptionally well. And so that's essentially what we've done. Like power washing is not rocket science, but we predominantly focus on commercial power washing.

00:22:54

So we're doing stadiums and airports and gas stations and convenience stores and, bigger jobs, hospitals, stuff like that. Um, and no one really is doing that work currently. It's largely the guy who's a high school student, he's got a $1,000 machine, he does this on the weekends and in the summers, and he makes $30 grand, and it's great. But we're like coming at it from the perspective of, oh no, we're going to build a multi-truck commercial pressure washing empire in every single market that we, we go into. And so, you know, You can, you can really build a great business by just doing something that is very ordinary and average, meaning the service, but actually just doing it better than the other people who are currently doing it. And, and that's essentially what we're doing. And we're giving franchisees the ability to follow a system that allows them to do that. And then on the like, how are we generating demand level? Well, now we have 130+ trucks on the road, so we can go to companies like Costco and Walmart and Chick-fil-A and be like, hey, we have 37 states that we have presence in.

00:23:59

Why don't we come do, I don't know, let us do 300 of your stores. And then we go do 300 of their stores and they're like, oh, you actually did a great job and I like having one point of contact. We don't ever want to use a local guy again. So here's 4,000 of them. And so we can basically go and have this leverage now because we're the only coast-to-coast power washing company out there because we have so many franchisees who bought into the brand. Are out there grinding every single day. And so we have this leverage that we're able to do that no independent business owner is ever going to be able to have by just opening their own power washing company. Like, they just won't. They won't be able to.

00:24:38

It sounds— I mean, I totally understand just the power of brand, right, alone in itself. So as you're sitting there, I'm thinking, okay, where do the people fail? Like, of all your stores you have, I believe you said like you're in the 300s now, which is incredible over the last couple of years. What's the success rate of these? Yeah.

00:24:59

So this is where people go wrong. Okay. They buy into a franchise and they think they don't have to do anything. If I could support fully multimillion-dollar locations with just our infrastructure alone, we wouldn't franchise our business. There'd be no point. We would just hire managers. We keep the entire economic upside instead of getting a royalty, there'd be zero reason to franchise your business. Where franchising and the franchisees that make the biggest difference and make the most amount of money, they understand that it is 100% their business. It lives and dies with their ability to hire, retain, recruit, sell, and build a company. I can't do it for them. My team can't do it for them. I have wonderful executives that have been doing this way longer than I have. They can't do it for them. Again, if they could, we wouldn't franchise our business. There'd be no reason to. And so where you see people get in trouble when they buy into brands is they're like, they come in with kind of this employee mindset because a lot of people are leaving corporate America where they have employee handbooks and they make $300 grand and they expect the departments of the company they work for to give them all the things that they need to do their job well.

00:26:26

When you're a business owner, you have tools, but it is your job to make everyone around you do their job well. And so going from an employee mindset to a business owner mindset is where people struggle. If they can't shift from employee mindset to business owner mindset, they're going to end up not— it's not going to work. Like, yeah, I mean, no matter what business they go into, it just won't work.

00:26:52

And but you say you can't help them, but I'm assuming you have training and manuals and procedures.

00:26:56

Yeah. And just to be clear, like, when I say I can't, I just can't grow their business for them. Like, I can give them training. We have a call center, we have marketing companies that generate leads. We have national accounts where we're helping them get more work. Like we teach them how to hire people, but they actually have to wake up every single day and do it.

00:27:20

Yeah. I always say, I always say this when I'm hiring, when I'm going to coming onto a consulting gig or hiring salespeople who want me to teach them how to train, I say, I say, listen, I can meet you, I can show up and do my 100% of my 50%. But what I can't do and I won't do is I'm not going to wake you up at 6:00 in the morning, knock you on the head and say, come on, let's get going. You got to keep doing this. You got to show up at 50. I'll show up at my 50 and it works. So it's the same thing. They have to actually do the hard work.

00:27:52

Yeah. But from, with that said, like the majority of our franchisees, come in with the right mindset because we set the right expectations in the franchise sales process. We tell them, this is what it's going to take, this is when it's going to be really hard, um, you're going to want to quit, but if you push through that and get to the other side and pass a year, 2 years, you're going to have an asset that you can transact and pass down to your kid. And like, you're actually going to have recurring revenue on the books. Like, this is like the reality of this business, and we have hundreds of locations that are out there doing that right now. Are you willing to follow the system? Are you willing to get in and execute? And so largely our success rate is considerably higher than someone just going and starting their own business on their own to try to figure it out because they have to go out and figure out what website provider to hire and what logo they're going to create and what's their mission statement and how are they going to hire people and which marketing vendors actually work versus don't work and how do I get materials and tools like all that stuff doesn't exist and business owners are going to spend lots of time creating all that.

00:28:57

And guess what? It might not work.

00:29:00

Yeah, I mean, you're buying a proven system across 37, 50 states.

00:29:05

Like, it's working. So it's, it's, it's a de-risked opportunity.

00:29:09

So I asked the question, um, I'm not sure if you know that answer though. What is your success rate? Do you guys know your success rate of franchises opening?

00:29:16

So we've had— so we have 97 owners that own 350 territories.

00:29:25

Okay.

00:29:26

Yeah, 97 actual people that made the decision to become Rolling Suds franchisees. Out of the 97, we have had 8— only 8 in 3 years— either transfer, um, and we've had, uh, 1 close. So transfer means like they got out and they sold to their neighbor. Close means like they just were like, I don't want to do this anymore.

00:29:54

Yeah.

00:29:55

Which is like, to be honest with you, a great number.

00:29:58

I'm— I would say it's a fantastic number because what happened to that one person? I think we all know what happened with that one person.

00:30:05

We don't have to go into it.

00:30:08

We don't need to go into that explanation. And if you're thinking about that one person, then like it goes back to that employee business mindset. Like it's probably not for you. I think there's a lot of people in the US that don't even know that this model exists. I truly believe. I mean, I've heard of the models and I've seen these models, but I don't think about them all the time. And just even, even speaking with you and hearing with you is like, if you're willing to take the risk of starting your own business with no really good idea and hoping that it's a good idea and having to go through all the pain, or you just really want your own business, and have the upside and potential support, then realistically, you know, a franchise model is probably a better choice for that person.

00:30:54

Well, and if you look at like what's happening with AI right now, it's actually probably one of the most scary times for your white-collar professional to remain in a job.

00:31:07

Yeah. I couldn't agree more.

00:31:09

Yeah, it's like I'm doing work in AI on building, building something for the company and it is doing work for me that a $200,000 a year employee would do. And, and so, you know, people are like, oh, I don't want to buy myself a job. The reality is, is every single business that you start at the beginning becomes a job. Like you trade your time for money regardless. And eventually you hire great people and they replace you.

00:31:36

Well, I'm going to have to disagree with one thing. It doesn't become your job. It becomes multiple jobs.

00:31:43

Yeah, exactly.

00:31:44

Multiple hats. And don't kid yourself, you actually work way harder and longer and stress and lose your sleep and pull your hair out way more than you ever as an employee. For sure. But all for what? The upside. I'll never forget when I first got even into sales, which was, you know, commission job only, kind of an entrepreneurship, right? I'll never forget the quote that my mentor at the time said. He's like, what are you willing to do in the next 3 to 5 years that most people won't in order to live a life most people will never live? What are you willing to do? And I totally get it. Like, are you willing to go sleepless nights? Are you willing to put the $350,000, $500,000 risk out there Are you willing to hear the nos so that you can live the life everybody else wants to live? Now with this franchise model, it seems like there's so many things that are de-risked and proven that really, and I'm going to assume this because we're right in here, I'm going to assume you're also going to help them find a location or, or help them understand this is probably not the right market for this or whatever it might be so that people are not making you know, opening up a shop in a small town that probably can't service a longtime, you know, power washing company.

00:33:05

Yeah, I mean, we are helping them with— like, I have thought through as many of the variables as you could possibly think through so that I can take off these variables off of their plate so they can just go focus on execution. Like, they don't have to answer their own phones. We have a call center that does that. There's an outbound call center that goes and generates leads for them, that's calling homeowners and generating leads. There's outbound emailing that's generating leads for them through vendors that are generating organic leads. There's an accounting company that does their books. There is a payroll company that does their payroll. Like, all of these are either done internally by us or are done by vendors that we've negotiated relationships with. And so the franchisee in the right franchise model gets to get in, say, okay, I've got the playbook. Now I just need to go out and sell and generate revenue and hire great people. Yes, that's exactly what you need to do. In fact, All you should be doing every single day is focusing on those two things. Where franchisees get in trouble is they're like behind and analyzing numbers at 2:00 on a Tuesday and it's like, no, no, no.

00:34:06

Member revenue generation and hiring great people and scaling your business is what you do during business hours. I joke, but like, dude, I literally, when I launched this company, I awarded the first 160 units myself. I would wake up at 5 a.m., run the business till 7:30, get on the phones from 8 to 6, put the kids to bed from 6 to 8. Get back in front of the computer from 8 to 11:30 running the business, and then I'd start over again. And so every 13 days we were hiring a new person for the first 14 months of the business. And like, that's what it takes. Like, you have to do that regardless of whether it's franchise or not a franchise, because that's what it takes to build a great business. And, and the franchisees who come in and do that and understand that even though we have all these tools, they still got to go in and execute. Those are the ones that are most successful.

00:34:56

I would agree. They don't fight the plan, they just execute the plan. And it sounds like I couldn't, if I was picking this up, you're saying they have to generate revenue. And it sounds like you have systems where the revenue is being, like the leads are being generated. They just gotta answer the phone from the call center and flap their gums, which is following a script, which I'm sure you give them.

00:35:22

Which we give them a script.

00:35:22

Yeah, exactly. And just follow the script, deal done and then go execute the work and then repeat. So they don't even need to figure out lead generation.

00:35:33

Yep. They need to be in their community shaking hands and generating their own business. But yes, it is absolutely de-risked by the volume that we bring in alone with both local lead gen and then national accounts work that we're doing with major companies that everyone knows the names of.

00:35:50

I mean, if no one really picked up, if someone's listening here and they're wondering, I don't know, I'm selling this for you because I'm sold. I'm going to be calling you me like, buy me 5, 5 of them, please. If you, if you looked at, if you listen to what you said, it was very interesting to me. We have over, I'm going to say 300+ locations, but only 97 owners. What does that tell you? That means that the owners themselves have multiple locations because they see that, they see and believe in this. And they understand that the power of like the power of 2 is greater than 1. The power of 3 is greater than 2. So it's, it's obviously it's a working model. It sounds like you guys have it dialed in. Yeah. I'm just gonna leave it here cuz I think it's fantastic. I think anybody listening here, if you're even thinking about creating a business, if you're even thinking about even trying to find, actually park some money, if you, you know, if you're looking for extra ways, what we people call is the mailbox money. Eventually it seems like this could turn into mailbox money eventually.

00:36:50

Any business, eventually.

00:36:52

I mean, you put the hard work in the first year or two to set it up, then it sounds like you can hire a bunch of high school kids to run the business for you. And you just, at that point, the systems are in place, the marketing's in place, the reputation's in place. You're facilitating, uh, your mailbox money pretty easy. If people are interested, want to learn more, where can they find you?

00:37:14

Um, in Rolling Suds, we've got plenty of territories left. We're about 30% of where we want to be system, like nationwide in terms of presence. So, um, uh, you can go to rollingsudsfranchise.com and submit, learn more, and you'll be on the phone with my team within a couple days. Um, I also put out a lot of stuff online just about franchising in general. So you type in Aaron Harper Rolling Suds and you'll come up with a bunch of Twitter and LinkedIn and different things where I've put out content over the years on just what it takes to be a great franchisee and be a great franchisor that is hopefully helpful to those who follow along.

00:37:52

Aaron, I appreciate you being here, stopping by, and I'm hoping that we— somebody's understood what the Vault Unlock's all about and for them unlock the power of franchise and the power of business. So thank you so much.

00:38:08

Thanks, Kevan.

Episode description

Most people who want to own a business spend years building something from zero, hoping the idea works. Aaron Harper took a different path. He found a 36-year-old power washing company in northern Pennsylvania, acquired the franchise rights, and scaled it to 352 units across 37 states with 97 owners, many of whom operate multiple territories. He never started from scratch. He bought into proof. This episode is not about franchising as a category. It is about how the smartest operators use existing systems to compress the timeline between decision and cash flow. Aaron breaks down the exact structure of how franchise acquisition works, why only 16% of all franchises ever reach 100 units, and what separates the operators who scale from the ones who quietly quit. The conversation gets specific. You will hear why running a franchise business and running the core location are two completely different companies, and why trying to do both at once is one of the fastest ways to fail. You will hear why a minority stake in a franchise company can outperform owning 100% of a business that was never built to scale. And you will hear what the real failure point is for most franchisees, which has nothing to do with the system they bought into and everything to do with the mindset they showed up with. Aaron also gets into why AI is making this model more relevant right now, not less, and why the white-collar professional sitting in a $200,000-a-year job may be the most at-risk person in the room. This episode is for operators, investors, and independent thinkers who are serious about building cash-flowing assets, whether through franchise ownership, franchise development, or acquiring existing businesses with replicable systems. If you are still waiting to find the perfect idea before you start, this conversation will reframe the entire question. The difference between a business that scales and one that stalls is almost never the idea. It is almost always the system behind it.     Topics Covered Why franchising requires two separate businesses operating simultaneously The franchise through acquisition model and how Aaron used it with Rolling Suds Why only 16% of franchise brands ever reach 100 open units How to structure a deal with an existing business owner What a franchisee actually needs to do to succeed versus what the franchisor provides The employee-to-owner mindset shift that determines whether someone makes it Why AI is accelerating the case for business ownership over corporate employment How Rolling Suds achieved a 97% owner retention rate across 352 units     Looking to dive deeper into these conversations and connect with our host and guest? Follow Aaron Harper: Instagram LinkedIn X TikTok YouTube Learn More Follow Kayvon: Instagram Facebook LinkedIn TikTok   Want to go deeper with Kayvon? Subscribe to the newsletter Book a discovery call Get your Revenue Engine Scorecard™️ Hire the right salespeople