The Daly Coach: Finding Freedom, Control, and Passion Through Franchise Ownership with Speaker, Trainer & CEO Kim Daly on Episode #0194

Intro [0:00]
EA Interviews Episode 194. Inspiration, transformation, success stories, and the Imperfect Action Round seven days a week. Join Mario Fachini for today’s Expert Authority Effect Interview.

Mario Fachini [0:13]
Have you ever thought about owning a franchise? I will tell you that I have. It was a subway. I like food. I thought it would be a great idea. And I’m super excited to have one of America’s top franchise consultants, Kim Daly, on the show today. Prior to becoming a franchise expert and helping people live the life of their dreams through franchising, she has a background in health and nutrition. Started one of the first trainings with USA Today. Miss America contestant, and she’s worked with Denise Austin, Gold’s Gym, and many others. She has a wealth of knowledge and I am excited to learn why fitting the right franchise to you is important. Because I had a lot of good ideas and apparently it’s not right. And we’re going to find out why you need to fit the right one with you and learn the power of franchising right after we thank our sponsor.

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Mario Fachini [1:28]
Here she is ladies and gentlemen, the lovely Kim Daly. Kim, how are you feeling today?

Kim Daly [1:33]
Excellent. Thank you, Mario. Nice to be here.

Mario Fachini [1:36]
I am so excited to have you. And I want to ask, what is the importance of franchising? Why is it a wealth creation tool? And how is picking the wrong one detrimental?

Kim Daly [1:49]
Oh, my gosh. So many questions? All right. So let’s start with why picking the wrong one is so detrimental?

Mario Fachini [1:57]
Oh, thank you.

Kim Daly [1:58]
That’s really why I have a business to help people really identify – like, look at themselves professionally, personally, and financially, and to match the business to their interest. As opposed to what my community needs. Or, “Hey, I like this brand. And so I want to own the business as if it’s like a hobby.” So at the end of the day, the business is an investment and you need it to make money for you above everything else.

Mario Fachini [2:29]
So liking to eat and starting a food franchise probably isn’t the best reason?

Kim Daly [2:36]
Not necessarily the best way to select the right business. And, ultimately, Mario, when you invest in a franchise, you are buying a relationship. So you’re buying into the vision that other people have already created. And you’re buying their mentorship and support to help you get out of the gate and build a successful business. And it’s a wealth generating tool to answer another question you asked, because you should be able to scale a franchise business significantly faster than if you were an entrepreneur. And there was one more question, what was the other one?

Mario Fachini [3:14]
You covered it. It was kind of like, it was one long question, if you will. I didn’t want to forget the one thing. But I know there’s a lot of benefits. And I used to work at Wendy’s way back in the day. And I remember the owner, Brian, come to find out he didn’t just own that Wendy’s. He owned 13 others. So when you’re talking about the scaling, how much easier is it to scale a franchise than a traditional business?

Kim Daly [3:44]
Right. So if you’re buying into or investing into the right franchise, you would invest with the vision to have multiple units. Most of the people that I work with, start with a multi-store deal or multi-territory agreement from the beginning. And that’s based on us figuring out during their due diligence process, how much money they want to make from the business and then approximately what they think they can make per store or per territory. And then building out a plan, so, “Okay. I want to make X amount of dollars. So that means I need to or I need three territories.” And committing to those territories up front. The reason you can do that is because most franchise businesses have the systems, the technology, the infrastructure, that allow the owner to work on the business rather than in the business. So most entrepreneurs start out sort of in the business and it’s very hard to get out from underneath it later on. And that’s why they can’t really figure out how the fees and franchising are justified because they’re struggling have $100,000 business when a franchisee in a similar industry, the average franchisee could be doing over a million dollars in revenue. But that’s because they did not start out working in it. They started out working on it and hiring to the experience of the business.

Mario Fachini [5:10]
So one to ten, how important is having the right team in place?

Kim Daly [5:16]
The right team of employees or the right team at the corporate office?

Mario Fachini [5:21]
I’d say both, because I know you need the leadership for sure. It’s paramount. But if you have no one manning the store, that’s how you’re going to get stuck in it.

Kim Daly [5:30]
Right. I mean, absolutely, you definitely need to have good employees. If you plan to be a semi-absentee investor, so franchising allows owners to – some franchises allow owners to keep their full time job. So you might have the short term income and stock options and, you know, health insurance benefits that a W2 job would afford you. But you’re worried about long term security with that job. So people like that invest in franchises that we call our semi-absentee. So their manager runs stores. And so in that case, where you’re at your W2 job every day and your manager is managing the day to day operation of your store or multiple stores, you absolutely need to feel competent that you have a great team in place, a great manager and a great team, because, basically, your investment is in their hands.

Mario Fachini [6:26]
I got to dive deeper with that because I started my first company at 12. I sold it to start this one when I was 18. And I’m trying to wrap my head around, to be honest, someone’s at a job but they have the money. What I’m getting is they have the money to start the franchise, they just want to invest in it. How do you go about training? Or is this where you rely on the franchise system to do the training and getting the right people in place? Because if you haven’t done it yourself, is that where the system comes into place?

Kim Daly [6:59]
That’s exactly where the system comes into place. Let me give an example because it’ll be easier to kind of visualize what we’re talking about. So, say, for example, you are a multi-unit Supercuts franchisee. Have you ever heard of Supercuts?

Mario Fachini [7:13]
I have.

Kim Daly [7:14]
Okay. So Supercuts isn’t a business that Mario would necessarily need to be at the front desk, checking people out, if you owned it. You don’t need to be cutting hair. No. You’re going to hire to the experience of the business. And, in fact, you’d even hire an experienced salon manager to run the day-to-day operation. And so that’s an example of a great franchise that it definitely works when the owner is not there in it every single minute. So in franchising, we use the expression, you work on your business, while your employees work in your business. Does that make sense now?

Mario Fachini [7:49]
It does.

Kim Daly [7:50]
The same thing, if you own a Massage Envy, you’re not going to be giving a massage. You’re not going to be checking people in and out. If you owned a Meineke, you would hire mechanics to work on the cars and an office administrator or front desk person to run the center. You don’t have to be there every minute that the business is operating. Now, not every franchise allows the owner to start in this position. But those that do, again, it’s called semi-absentee ownership. And how do you know that if you’re exploring on your own? Well, you would have to ask the franchise or if they allow semi-absentee ownership. When people work with me, with my free consulting service, that’s part of what I do. And we define sort of their vision and their goals and how they want to use this investment as job replacement or as an investment that’s building cash flow and equity for their future. Then I bring the opportunities to them that match those goals. And so I, of course, know which companies allow owners to be semi-absentee and which ones don’t.

Mario Fachini [8:59]
I like the cash flow, the equity, and the investment. Where would you say is a good starting point that the people you’re helping, you know, do they need a quarter mil, half a mil, a couple mil? What does it take to get into a franchise seriously and do it the right way?

Kim Daly [9:18]
Okay. So, you know, not to be evasive with that question, but in any kind of a live event, I never like to talk about money, because there are franchises that are $20,000 or 30,000 all in and there are franchises that are $2 or 3 million all in and more. So what I do for –

Mario Fachini [9:39]
So you can do something under 100 grand?

Kim Daly [9:42]
Yeah. And the amount of money that you’re putting in does not equate to – like, if it costs less to get into, then I, probably, can’t make as much money as if it costs more. That’s a total myth. But what I tell people in a group setting is, “Listen, if you’re interested in exploring franchising, reach out to me.” Because I would like the opportunity to educate people in a one on one when I know their net worth, and I know their goals, and I can explain to them what different franchise businesses cost, and what kind of skill sets different businesses require. Then it allows me, number one, to control what people are hearing, which is very important in this process. And it also gives me the opportunity to educate people. So I’m not just saying, “Hey, you can’t afford it. Sorry.” But I’m educating them. So if now –

Mario Fachini [10:32]
Yeah. You want to find the best fit for them because there’s a big difference. I’m thinking of one – I know McDonald’s is, like, a mil plus or 1.5, probably over two at this point. I’m probably working on ten year old numbers. But I knew there was some that are closer to 100,000 to 200,000, again, all restaurants. You’re seeing a theme here and I figured out what question I’m going to ask you in a little bit. But I think it’s better when they are cheaper to get started because it gives you a higher ROI and a quicker profit potential. When you got to make back millions of dollars, you’re probably not doing that the first six months or the first year.

Kim Daly [11:16]
Well, so here’s the thing, it depends, you know, when you’re looking at – yes, that’s probably a true statement. But there’s the cost of entry and then there’s the ongoing fixed cost. So sometimes it is expensive to get into, because you have to buy the equipment. Like, for example, we have a franchise that cuts trees. And so in order to cut down trees, you need all the trucks and all the tree cutting equipment, so it’s a big capital investment to get into it. But the ongoing fixed costs of the business aren’t relatively high. So when you look at what keeps business owners up at night, it’s the fixed cost. It’s when you have $30,000, $40,000, $50,000 a month in overhead that you have to cover, that will keep an owner up at night, especially if you don’t have a membership or you don’t have a way to predict when that revenue is going to be coming in the door. So we always have to keep those numbers different. Just because something is a big cost of entry doesn’t mean it has high fixed costs.

Mario Fachini [12:16]
Oh, absolutely. So keeping your fixed cost down is paramount it sounds like.

Kim Daly [12:21]
Yes. So I’m one of the top consultants in the country. I’ve helped a lot of people get into franchise businesses over 18 years. I’m very blessed to help a lot of people. And I don’t place a lot of people into food based business. And I don’t think in the 18 years that I’ve ever done pure retail. So people are like, “Well, what else is there if we’re not doing food and retail? Where are you placing all these people?” Well, I like businesses with low fixed costs. And both food and retail have very high fixed costs and variable costs, so it’s too hard to make money. When the margin is so slim, it’s just too hard to make money. So I, particularly, like service. I like service that runs from home. I like service that runs from office. I like service that runs from retail space. But I like service, especially if it’s a service that has an ongoing reoccurring revenue stream. So sell me one time and then I’ll continue to pay you again and again. Like, a maid service, pest control, gym membership, Massage Envy membership. You see the theme? Anything where it gets easier and easier over time to predict your revenue.

Mario Fachini [13:37]
So the one I’m thinking of that fits this perfectly because the service base, you can get the employees, the staff, the team in place. And now, you’re selling the time, basically. Like you said, you have the fixed cost of the trucks. And the one that really stands out is I know Scotts merged with TruGreen back in 2016, if I’m not mistaken. And, yeah, you have the fertilizer, the stuff you put on the lawn, and dandelion killer, and all this stuff. But once you have the truck, it’s probably going to last what? Five, ten years even under commercial use? You’re paying mainly for the service and only one-fifth of that or 20 percent is the cost of the fertilizer, the product. The rest is walking around, you know, making sure the lawns are covered. But you don’t need a giant tractor trailer pulling around to be accomplishing the goal versus cutting it.

Kim Daly [14:31]
Right. One truck, one technician. And in those types of businesses, you’re able to sort of figure out the revenue per truck. So, again, when we’re talking about someone’s goals, they can go out and they can interview other franchisees in a particular system to see, so one truck, in your example, can do, let’s say, $150,000 in revenue. And maybe that’s nets to the owner 30 percent. So you’re netting 50 grand. And you’re like, “Okay. Well, I want to make 200,000, so that means I need a minimum of four trucks.” And then it’s to figure out, “Okay. Well, how many trucks can run in a territory before it feels too saturated? Is that one territory? Is that two territories?” So these are all the things that I coach people to during their due diligence process, where to find that information. I am not the one who gives them the information, I teach them the questions to ask and where to go ask those questions. And then they go out and do that.

Mario Fachini [15:25]
Do you find that most people who want to get into a franchise are happy with one location? Just getting into it and doing the one thing? Or do they, generally, have the mindset of, “Okay. I’m going to start this one. And in 48 months, I’m going to scale up to two. And then 48 months later, I’m going to double again.” And they try to grow it over 10 or 20 years, and that’s the goal to have a dozen plus or dozens, if you will.

Kim Daly [15:51]
Yeah. It comes back to their goals, Mario, really. Some people one is enough. If you’re really trying to create wealth, then the scale is where that wealth gets created. And get this, if you had one manager, now you typically commit to the multiple units upfront, and you would sign a development agreement in addition to your franchise agreement. That would commit you to the timeframe in which you would want to get those additional stores open. But you have a great economy of scale, because, let’s say, that you owned three locations in a geographical area. Then if you were to run radio ads or radio spot, you don’t care what store that traffic goes –

Mario Fachini [16:34]
They’re all going to your business anyway.

Kim Daly [16:36]
Right. You have one manager who can drive around from location to location. So it can really start to save you money when you have that scale with multiple units in a geographical area. And, also, then build not only the cash flow, the equity, but that’s how you’re building the wealth. There’s tax shelters with these businesses. So when you go to sell your business – and I always coach people that a business should be built to be sold.

Mario Fachini [17:03]
Yeah. Have an exit strategy.

Kim Daly [17:05]
Yeah. Even if you get to the point where you thought you were going to want to sell it and you still want to keep it, that’s okay. Hold on to it. But I think some people feel like, “Oh. Well, if that business becomes obsolete in ten years, then I don’t want to be in that.” And there’s too much weight on a decision when you’re trying to get into a business that’s going to be the thing that you do for the next 15 or 20 years. There’s a reason franchise agreements are typically seven years or ten years. So it’s like, build your business for a five, seven, ten year period and consider having an exit strategy from it at the end. Because most franchise businesses will be able to sell for a multiple of the owner’s net income. And going back to that wealth generating strategy, I mean, look, if you could take an investment, let’s say, that you invested 150,000 in some service based business. And you turn that over six, seven, eight years into a business that was – I don’t know – grossing $3 million. And let’s be conservative and say the owner’s net benefit on that was 300,000. So your take home pay is 300,000. And, let’s say, that you were in an industry that’s growing. And at the time you’re ready to position this to sell, the economy is really strong, it’s not unreasonable to believe that you could get a two multiple, maybe up to a four multiple of that 300,000. So if someone would come and offer you a million dollars to go away, I mean, why wouldn’t you take that exit strategy and leave? So I’m not trying to make any earnings claims or tell you, you can sell a business for four multiple. Don’t misinterpret. I’m just giving the example that exit strategy could be part of the full ROI if you’re investing in the right business and positioning yourself to have it in a position to sell it at some point in the future.

Mario Fachini [18:59]
I didn’t think you were making any earnings claims, but I’m going to repeat that also. And it sounds like it really depends on the owner, because – that’s great – you grow it to that point. And yeah, they give you a million dollars to exit. Or maybe you’re so profitable, because that’s what people want when they’re buying the company. Maybe you keep it and you decide I want 12 more stores. But it’s your choice. The goal is to get it to that point where it’s desirable to either you or everyone else where it’s not a big decision and you feel weighed down. It’s, “Well I can grow it and make 2 million this year or I can get rid of it and make 1.5.”

Kim Daly [19:41]
Right. Right. And when you own a franchise business, it’s always your business to sell. So the franchisor, I mean, there are rules around how you sell your business and your Franchise Disclosure Document. But it’s always your business to sell. Sometimes the franchisor, if you have a great successful location and they want to take it as a corporate store, they may buy it from you. But most of the time you’re going to sell it, like, through a business broker to the next person that’s looking for a great established business to take over and walk into some cash flow.

Mario Fachini [20:18]
That is excellent. And it’s good to know there’s so many options out there other than food.

Kim Daly [20:25]
There’s so many options other than food.

Mario Fachini [20:27]
All right. Why don’t you tell Expert Authority World, if you are looking to get into it, how many options would you say? There’s hundreds, thousands? Let’s go with the industries. I’m sure there’s thousands of businesses. Industries.

Kim Daly [20:41]
One time I heard that franchising covers over 80 different industries. And then there’s just so many ways to make money. It’s like, when I’m working with people, I tell people, “Look, don’t pigeonhole yourself into, like, Kim loves to work out, I have to own the gym.” Cast a wider net. When you’re exploring franchising, just open your mind to the possibilities. Because many times my best candidates find a business where they least expect to. You know, when I present a company, they’re like, “What?” It’s, like, hidden from left field. And they’re like, “I didn’t see that coming.” And I’m like, “I know, but just go and have some fun, meet some people, be curious about how they make money.” And people who remain curious and remain open minded, come back, and very often, like I said, they end up in businesses that they never would have selected from a list of the top 500 franchises, if you will.

Mario Fachini [21:42]
I got to throw this one in here. What’s the craziest business or scenario you thought that someone got into that they never thought they would?

Kim Daly [21:54]
So, for example, I have a business called Smash My Trash, which is one of my all-time favorite businesses. And it’s a commercial trash compactor. And so, you know, when I’m working with people, I’ll have to kind of probe a little bit about how important the status of the business is to them. They need something glamorous that whiles their friends’ minds when they’re like, “Yeah. This is my new business.” Or, you know, visually, did they want to drive down into town and look at the store and say, “That’s my store.” And if those things are a negative, like, I don’t care. Like today, a guy told me today – I was joking with him. He’s a banker, 25 years in banking. And I said, “Okay. So if I come back with a Porta Potti business, you know -” and he was like, “Hey, that smells like money to me.” So it just depends on how open people are. I always tell people, if you tell me status is not important to you, you better hold on to your chair, because I’m going to come back with something like junk or Smash My Trash or Porta Potti. Or we have a business that scoops dog poop. Like, walks on people’s yards and cleans up dog poop. So, I mean, you, you name it. If there’s a business for it, there’s a franchise of it. And sometimes the dirtier businesses that other people don’t want to do are the most profitable businesses. And many times they’re the more sustainable businesses. They are more essential services that even during pandemic time are still thriving. And gives people that safety factor of like, “Okay. This isn’t a trend or a fad that in five years nobody’s going to want to spend money with me.”

Mario Fachini [23:33]
Yeah. I would say the same thing I’ve told my own clients and audiences when they’re just thinking about business in general. I go, “Everyone wants to sell diamonds and big screen T.V.’s and stuff that’s sexy, but how often do you buy a very expensive diamond or big screen T.V.?” I want to get into, like, toilet paper, napkins and, like you’re saying the trash. Because if this is a business and you’re using it for wealth creation, you need to have a healthy profit on it. If it’s a passion project, you know, maybe you start a charity instead and you pour your heart into it. There’s nothing wrong with that. But there’s a big difference. I think a lot of people get too stuck on something in between. And they’re like, “Well, I’m not making enough and I want to do this.” They have hearts of gold, but you’re working on a 5 or 10 percent margin, very best best case scenario, it’s going to take a lot longer. Where when you go in and you’re talking about some of those things, I’m thinking back to, I did start my first business when I was 12. It was lawn care maintenance. Well, power washing wasn’t until I expanded and then got a chain for my car when I was 16 and started pulling shrubs, expanded again. But I mean, some of the times it was muddy, it was wet, and I’m just like I’m making 20, 30, 40 an hour cash at 12, 13, 14,15. I paid cash for the first car. And I’m like, it’s lucrative. It’s not rocket science. It’s not the funnest in the world. I’d much rather be swimming in the water than walking through it. But, hey, it’s working.

Kim Daly [25:13]
Right. Right. It’s so true. It’s so true. But on the flip side, for those people that come to me that want to do something that they say, “Look, if I’m going to do something to reinvent myself, I want to do something that is socially conscious or something that I wake up every day and just feel like really good about –

Mario Fachini [25:30]
You don’t want to be grudging. They got to be in some level of interest.

Kim Daly [25:34]
Right. And so we have franchises that involve helping seniors and our aging population. We have franchises that are totally green companies. Like, we have a junk removal company that, one, they repurpose or recycle 100 percent of everything they pick up. They’ve been in business since 2004. And to date, they have picked up over 50 million tons of junk that has 100 percent been recycled or repurposed. So, again, when I get to know people through my process, these are some of the things that these are the discussions that we have around how important is passion, how important is waking up and knowing that what you do every day really matters to the world, is that essential or just a nice bonus. And then that’s part of how I match companies to people.

Mario Fachini [26:27]
Excellent. So I have a question, I’m curious of the answer because you’re given a lot of great insight here, what has been the biggest transformation you’ve been able to give someone and you’ve seen in them? They didn’t have a franchise before, they got hooked up with you, and then a year or two, maybe six months later, maybe three years later, it doesn’t matter, what’s your biggest success story?

Kim Daly [26:50]
So, first, let me just say this, I don’t really own the success story. Not to be evasive. Because I’m leading the people to the franchise. And then what people make of the opportunity is completely on them. I don’t own their success. I don’t own their failure. But I do want to answer that question. And I have –

Mario Fachini [27:08]
But you get them started.

Kim Daly [27:10]
I have a video on my website about this story. So there was a gentleman that I worked with who, I swear to you, he was, like, clinically depressed when I met him. And I thought to myself, “Dear, Lord. I do not want to help this person buy a franchise.” And this is about probably seven, eight, nine years ago. And one of the first lessons where I learned – I’ve always sort of known it’s not my job to play God with people’s lives. So people often ask me, “Are you going to tell me if I’m not a good fit for this?” And I’m absolutely not. And this story is going to drive that point home. So this guy, I remember calling the franchisor that I matched him with. I was like, “You have to help him figure out not to do this. Challenge him with questions that are going to make him realize this is not the right thing for him.” Well, that guy ended up saying yes to the business. Long story short, this particular franchise has over 900 franchisees in North America. He is in the top 25 – not 25 percent – the top 25 performers in the entire country. His business consistently does over $200,000 a month. It’s a window treatment business. Window treatments. And he is in a small town in America. I won’t say where in case he hears this, because I don’t want him to know how I felt about him in the beginning. But I was really worried for him and he completely changed his life. He is a multi-millionaire now through his franchise. And it’s just such a great success story. He volunteers to be on validation calls, which he helps other people to their dream of owning a business and this franchise by sharing his story. The business completely changed his life.

Mario Fachini [28:54]
Wow. Going from that to the top, it sounds like 3 to 5 percent. That’s incredible.

Kim Daly [29:01]
Yeah.

Mario Fachini [29:03]
And I’m sure you have more. It sounds like it’s pretty rewarding.

Kim Daly [29:09]
My business is incredibly rewarding. I mean, even those people who figure out franchising is not the right thing for them, they’re generally so grateful to me for kind of like the life coaching that we go through upfront to try –

Mario Fachini [29:25]
Yeah. Because you saved them a decade. You can find stuff out, but there’s things I look back and I’m like, “Probably could have done that sooner.” It’s like, yeah, I’m thankful for the lesson. But one year is better than eight.

Kim Daly [29:41]
Right. Exactly. Exactly. Yeah. And on the flip side of that success story, I mean, there are people that on paper when I meet them, I feel like they have the resume, they have the MBA, they were in the military so they can follow orders which is good in the franchise, good leadership skills, good communication and sales skills that have closed their doors 18 months into their business. It always shocks me. It’s like, “Really? That person didn’t make it.” And, actually, I have a video about this story as well, where one guy who had that kind of a resume bought the business and he had a limiting belief about the territory that he was buying. He was buying into a more established franchise. So the area where he lived was already sold, and he had to go kind of a couple towns over to a neighboring area. And he had a limiting belief that people in that area weren’t like as affluent or spent money like the people where he lived. I remember him saying, “People in that town don’t spend money like people in my town.” And those were very haunting words. Because 18 months later, the franchisor called me back and we’re like, “Hey, he closed his doors. Do you want to help us resell the territory?” I was like, 100 percent I wanted to help them resell the territory, because I knew that it wasn’t the franchisors fault that he closed his doors. This is a very strong franchise. One of the largest in their industry. So without a doubt, I was sad for the guy, but I was happy to have the opportunity to help find them somebody –

Mario Fachini [31:12]
Yeah. Help someone else.

Kim Daly [31:14]
Well, the new guy that I found happens to live in that territory. So he didn’t have any in his head trash that that territory wasn’t a viable territory. He was excited to have a business in his backyard and not have to commute. That guy went on to become Rookie of the Year doing nearly a million dollars his first year in business in the same territory that the other guy, who I would argue on paper, was probably a better candidate. He would have told you that the territory was unworkable and that’s the reason that he couldn’t make money. So it shows you that, you know, our perception is reality. And we have to be very careful when we’re business owners about what we think. Disciplining our mind, and staying abundant, and staying positive, and keep believing that the best is coming is critically important to our outcomes, because it absolutely does affect what we actually get.

Mario Fachini [32:07]
It’s reminded me of the book Acres of Diamonds.

Kim Daly [32:10]
Oh, I haven’t read that one.

Mario Fachini [32:12]
Oh, you’re going to love it.

Kim Daly [32:13]
I am going to read that. I am a very avid reader. I love all books, especially business books, marketing books, psychology books. I love books written by athletes on how they became an Olympic athlete, their story, from their coaches, because I think that the mind of an athlete is so similar to the mind of a top performing business owner. There’s so many similarities there.

Mario Fachini [32:37]
And military.

Kim Daly [32:39]
Military on leadership. Exactly. Execution strategy. Yes.

Mario Fachini [32:43]
Yeah. And I’ve personally found a lot of it’s just like, “Oh, don’t worry about it. It’s a small detail.” And it’s like, “Well, that’s what makes the difference.” When you have 101 small details, it’s like that’s why the business is different and better and more sustainable because – you know, I was about to ask you, what was the difference from guy A to B. But you clearly made it known. It’s the mindset. You got the same business, same territory, same everything. Except, “Oh, it was the cashiers fault. Oh, it was this person’s fault.” Nope. It’s the leadership. It’s your fault. No, it’s not. Yes, it is.

Kim Daly [33:19]
People come to me for control over their future and to own it. But it’s like you have to own it, whether it’s good or bad. Everybody wants to own it when it’s successful, right, Mario? But very few people want to own it when it’s not. And so when people will say to me, “Why do franchise businesses fail count?” If it’s such a great thing and the system is so strong, why do franchise businesses fail? And it’s a great question and there’s absolutely no one answer to that question. But the best analogy I have is, I was a personal trainer in college. So it kind of takes me back to my personal training. So go with me with this. I’ll set this up. So let’s say that you and three of your friends join the gym on New Year’s Day with the goal to get in shape, lose weight. So you decide to hire the same personal trainer. And you actually decide to go all together like in a boot camp. So same environment, same trainer, same plan. Do all four of you lose weight at the same time?

Mario Fachini [34:21]
No. Different body types, metabolic rates. A whole lot of stuff, food, eating, lifestyle.

Kim Daly [34:28]
Yeah. So here’s the thing, do all four of you lose weight? No. Do all four of you change your body? No. Does one of you probably quit? Yes, more than likely. Does one of you go on and achieve his or her results and then some? Yes, probably. So there’s a couple of things, if you wanted to know, like, what’s the best way to lose weight, are you going to talk to the person who quit and failed? Or are you going to talk to the person who got the result? So when you’re validating a franchise system when people are like, “Well, I want to talk to the people that failed? I’m like, “Why? What are they going to tell you that’s going to be helpful to you?” Go find the people who are rocking it. The people who’ve mastered the model. They’re the role models. They have what you want. And guess what, when they know the science of what drives top performance in their business, well, they equally know why people in their business won’t be successful. And what they tell you will be factual. It won’t be emotional. Because when somebody loses in a business, there’s a lot of emotion. And I’m not judging that. It’s a hard thing to lose money, to lose your dream. But if they really, really knew why their business didn’t work, don’t you think they would have turned it around? So people that fail in a business have their truth, but it might not be the truth. It’s how they see things. So going back to my gym analogy, so if you wanted to know the best way to get in shape from these four people, you talk to the person who actually got the result. And to the point that you were making, well, if the environment is the same and the training is the same, why doesn’t everybody get the same result? Well, because individual efforts vary. What you do in the 23 hours when you’re not in the gym? The attitude, the intensity, the focus, the consistency, all of that determines ones success. Well, all of those principles apply to success in business ownership. It’s the same thing.

Mario Fachini [36:29]
Yes. Success habits. “Oh, I’ll call my clients next week.” “Well, I’ll go to the gym next week.” Or, “I’ll do whatever next week.” It’s, “No. I’m going to do it today. I’m going to do it to the best of my ability. And if I’m not the best at it, now, I’m going to keep going until I get there. And I don’t care how long it takes.”

Kim Daly [36:48]
Right. It’s like the journey. And that’s very hard if people are trying to live off of the business sooner than they should be. And, again, that’s why I have a business to help –

Mario Fachini [37:01]
I made two sales calls, no one bought. Why isn’t it working? That’s my favorite. One of my in-person trainings I did before, I always pull out a pen and paper. And everyone thinks it’s going to be some big illustrious setup or something. I go, “Okay. There’s a lot out there. You can do that when you get to the advance stages. Make a list of 10 or 20 people. Why haven’t you called them?” They’re like, “Oh, this is great.” And I was like, “Who’s ready for segment two?” And they’re all ready to take notes and this and that. I go, “Throw it away. Grab your phones.” And they got freaked out. I’ve done the same thing with video. “Are you afraid to shoot video?” “Oh, yeah. Blah, blah, blah.” They spent 20 minutes giving me reasons why not. I pulled someone up on stage before, I had the audience rate. I go, “Raise your hand. Who’s afraid of doing video?” Two thirds of them raise their hand. I go, “You look good, sir. Come here.” Who’s afraid of video being onstage? I brought him on stage, pulled out the camera, and we went one on video from stage. And then I looked around and goes like, “Who’s next?” And then they’re really freaking out. I’m like, “I’ll relax. I do have some other points. But the point is implement it and don’t be afraid of it.”

Kim Daly [38:18]
Right. Execution is most important. I was an average performing consultant at FranChoice, which is my franchise that I am part of from 2002 to about 2010. And then I made some very subtle changes to my business that had, like, the most amazing effect. And it really propelled me to the number one franchise consultant in all of franchise consulting history one year later. You’ll love this, the very simple thing that I did I tell –

Mario Fachini [38:53]
Yeah. What is it?

Kim Daly [38:55]
I prospected. I created a prospecting plan and I held myself accountable to prospecting. What is the limiting factor to growing any business? Finding new customers. So you have to be diligent, consistent, focused, no matter what else is going on. What I realized in my business – and this is so true of so many other businesses – is, there’s so many things I can’t control. I can’t control someone’s going to buy a franchise. And how do I let go of that control? I don’t mean this callously but by not caring. So as long as I have somebody new to always talk to –

Mario Fachini [39:33]
Yeah. If you got three dozen in your pipeline and you just need three free monthly goal to get hit, you can be pretty darn bad and still hit it.

Kim Daly [39:43]
Exactly. I tell new consultants that are getting into franchise consulting, “You don’t have to know how to help people overcome objections and how to help manage fear. You don’t have to be great at any of that.” If you have enough people in your pipeline, it doesn’t matter. Because statistically if you’re pushing enough to the top enough fallout. But that is amazing advice for any business out there. So everything that I learned during that one year of going from an average performing franchise consultants to one of the top consultants and the top consultant in the beginning. And, now, I’ve taught other people who play at the same level that I play. And I’m not always the top. So I want to clear about that.

Mario Fachini [40:22]
It’s all right. Even if someone jumped in right this second, it’s beyond clear, you’re good at what you do and you’re in the top.

Kim Daly [40:32]
Thank you. So I teach all of my candidates exactly what I did. There’s a science. I’ve been able to replicate it since 2010, 2011. And so when I was able to replicate my results, and then business gets easier. Instead of working harder, now I’m working smarter. And I can go to my business mentor and say, “Okay. I’m comfortable. I’m ready to grow. What do we do next?” And he continues to challenge me, “Okay. Well, now I want you to do the same level of production in half the time.” So this is where you can say yes to business ownership in a minute. If you’re smart, you’ll spend the rest of your life growing and developing into this business owner that you want to be. So people are like, “You’re so passionate about what you do.” And I am. I’m passionate about helping people. But I’m also passionate about my own personal growth. And this business that I’m in challenges me. And there’s so many ways that I can keep growing and learning that it never gets boring. I mean, I’m 18 years into this and I’m as passionate about it today as I was back in February of 2002 when I became a franchise consultant. So who knew?

Mario Fachini [41:44]
Well, it definitely shows and I can relate to that. Because, you know, I published my first book. I did my first video. I did first whatever. And it’s like, how do I do that one faster? How do you do it more efficient? And the real testament is, you said it, I’m able to give it to someone else. I know people, they’re the best at what they do. But they don’t know how to teach it. They can’t write a book on it. There’s no training behind it. There’s no course. You want to have some real fun, take all those thoughts in your head and systematize them where someone who has no clue, and it will make sense to them. I failed English seven times. And I’m like, “I’m doing what? A book on purpose. Really?” But I thought about all the people I was going to be able to help. I go, “Yeah. They deserve it.” And I go, “If there’s one thing I know, it’s video and I can help them. This is easy.” I just had to find a different way to get it done and get past my own blockage. But if you’re an expert in something and you can just rattle it off 24/7 even uphold sleep, you know, I feel it’s like your duty to share it with as many people as you can, because it really might save them a decade or two.

Kim Daly [42:59]
Yes. It’s so true. What I do absolutely matters to people. I save them from themselves, from investing in businesses that are not great franchise businesses to be a part of, from businesses that aren’t going to match their goals, not going to get them where they want to be financially. And also help them learn how to bring their spouse along for the ride by getting the spouse involved in the process.

Mario Fachini [43:24]
Were you talking to my production team before we started this? Because you were just setting this up for the Wheel of Whatever question perfect. And I know exactly what I’m going to ask you. I’m glad you help people and save them from making the wrong business decision. Because, apparently, I don’t know crap. And this is the Wheel of Whatever. It always ends where it needs to and it always has the right question. And here it is right there. Look at that. So apparently, a restaurant based business is wrong for me. Having just met me, what is the best franchise for me?

Kim Daly [44:03]
Well, Mario, without understanding your net worth, I’m not sure that I could address that question. However, it depends. If you said to me, based on you being a great marketer and a great people person, I would want to know more. Do you want to be in an office everyday? Do you want to go out and about? I would want to know, do you want to have a high level of engagement with your customers? Or do you want to be managing a team of people that go out and engage with their customers? So there’s so much more I’d have to know about you to match the right business, but I can guarantee you it won’t be food.

Mario Fachini [44:35]
Okay. Well, that’s fair and I appreciate it. And I’d say there’s something I did close to eight to ten years ago. Right now, I’m looking for things that test me on the business side of things in the investment level and stuff where it’s just straight business. Because I’ve done a lot of more of the passion and personal and there’s a lot of stuff I do personally fulfilling. And one of the things I did about a decade ago, I developed a software to build WordPress websites automatically. And it was a challenge for me. Because I am a people person. I love people. I love socializing. Hosting is not really a far stretch. It’s fun. I enjoy it. And I love connecting with other high level people like yourself. The software, for me, was, if this doesn’t work, it’s completely software. I can’t talk my way out of it. It’s exactly opposite of what my strengths are. But I knew I could fill a void and I had expertise in that area as well. And I go, “You know what? This is going to be a good challenge.” So now, I’m looking in addition to stuff where, you know, don’t get me wrong. I am absolutely taking advantage of all the stuff I’ve set up over the last two decades. And it’s running smoothly and I’m loving it. But, yes, stuff that I’m not used to, that’s how you grow yourself and develop yourself.

Kim Daly [46:04]
Sure. Right. Trying new things, right. And the great thing about a franchise is that the more knowledge you actually come to, if you invest in a business where you already know like something about it, it could be more challenging for you to actually be successful, especially if the franchisor’s way is different than your way. So one of the most important characteristics of a good franchisee is that he or she is willing to follow the process. So you’re paying a franchise fee, so do what the franchisor says to do. So you invest in a business that you kind of already know something about. It’s a little counterintuitive, but you may not be as coachable as if you’re completely surrendered saying, “I know nothing about this. So I’m going to do exactly what you tell me.”

Mario Fachini [46:53]
And that’s the issue I had working places because I saw all the inefficiencies they didn’t want to fix. And let’s just say I’m in the right place now, and I have been for the last few years. So I think franchises are great. But when I was looking at some of them years ago, I was like, “Why can’t we do this?” And I’ve worked for them, admittedly. And I’m like, I see the world a little bit differently and it’s going to my advantage. But that would be interesting to dive deeper on this. But thank you for the honesty. And, wow, I was really looking forward to having a sandwich shop. Who doesn’t like food?

Kim Daly [47:30]
Well, listen, you could have a sandwich shop as an investor. If you had a day-to-day manager working in it and you put your money in it as well.

Mario Fachini [47:38]
Yeah. That was the plan.

Kim Daly [47:40]
You can do that, I suppose. But even then, I think there’s faster, easier, better ways, better places to put your money than in food. Sorry, all you food franchisors.

Mario Fachini [47:52]
Last call, any last cracks about a pizza place for the Italian side?

Kim Daly [47:57]
No. Not unless I could focus you on the marketing and the people side of that business rather than flipping the pizza.

Mario Fachini [48:09]
I actually like what you were saying about the lawns and stuff like that. Now, especially, because I sold that one, like I said, when I was 18. And it’s a few years later, but I’ve looked at it every couple years. I’m like, if I were to take my network resources, knowledge, expertise, and everything I have now compared to when I was in high school, it has grown considerably.” And just for sheer curiosity, yeah, I tore it up the first time. It’s been interesting to think what would I do now. So I have thoroughly enjoyed this. We have to thank the sponsor, but we’re going to come back with the Imperfect Action Round.

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Mario Fachini [50:20]
And we are back with the Imperfect Action Round. Kim, are you ready to take imperfect action?

Kim Daly [50:27]
I am ready. Massive imperfect action, I have that on my wall in my office.

Mario Fachini [50:32]
That is perfect. Sixty-second rapid fire answers. The first one is, what is the fastest path to the profits?

Kim Daly [50:39]
The fastest path to the profits would be really big goals. In business ownership, bigger is always better in terms of goals. Clear and specific plans, so broken down into daily sales plans. And then of course, consistent execution on those plans. Don’t let yourself down. Hold yourself accountable. Even when you think it’s not working, keep doing it, especially if the franchisor tells you this is how to do it because it will work if you keep doing it.

Mario Fachini [51:11]
Excellent. Number two, what is the biggest problem you see your prospects making and the fastest way for them to fix it?

Kim Daly [51:19]
The biggest problem my prospects make, my candidates make, is they have a lot of assumptions. People always think they know everything. And I’m like, “Look, this process has to be fun. You have to let go what you think you know.” Open your mind to the possibilities. If you find yourself with a limiting belief or, “Hey, that won’t work in my area.” Don’t just assume that what you think is true is true. Take that out to the existing franchise owners, invalidate with those people who are in the business to see if what you’re thinking is, in fact, even true. Because many times, it’s not. So if you open your mind, you will end up in a business that, I think, you might not expect, but you might more enjoy and it will fit your goals and your interest and your life better than kind of going in just rigid and making a lot of assumptions.

Mario Fachini [52:15]
Excellent. Number three, what is the best way to maximize customer lifetime value?

Kim Daly [52:23]
The best way to maximize customer lifetime value has to be to build relationships with people. Because people matter. People do business with people they know, like, and trust. And even if you’re delivering your experience through your team, you, as the owner of the business, are building a culture. And those people in your company are a representative of you. And so you rub off on them and then they go rub off on the customer. So you need to have a team of people that people can know, like, and, trust or you need to be a person that people can know, like, and trust.

Mario Fachini [53:03]
Excellent. What are some of your favorite things – you mentioned earlier, you’re an avid reader, what are some good books you can recommend to Expert Authority World?

Kim Daly [53:15]
I love so many books. So I think that in the business realm- I love psychology books, and I love self-improvement books most of all. Because I think that the mindset is one of the most important factors to success in anything in life. If you believe you can, you can. So my favorite all time book – I don’t know if you’ve ever read this – but Brendon Burchard’s book, Life’s Golden Ticket. Have you ever read it? It is so good. It’s an amazing story about second chances. So that’s a great book. Another story-ish kind of book is a great business book is, Many Miles To Go by Brian Tracy. That’s probably my second favorite all time book. So Brian Tracy is an international best-selling author, motivational speaker. And that book was when he was in college, everybody was backpacking across Europe. So he decided he wanted to be different. He wanted to get across the Sahara Desert. So it’s the story of how he finds friends, gets money, sets out to cross the Sahara. So you’re reading this story, and then he gives you the business application. So you see already, it’s like not following the path of getting a job, becoming a business owner, the importance of being properly funded like when he runs out of money, the importance of picking the right business partners when his people that he picks to go on the journey let him down or quit. So it has so many business lessons wrapped up into this very interesting fun story. And then the third book I’ll give you is what I actually can’t believe it did not come across my path until very recently is called The Alchemist. Have you ever read it?

Mario Fachini [55:07]
Oh, Paolo Coelho.

Kim Daly [55:10]
Exactly. I just read this book at the beginning of COVID. I’ve crushed so many books in quarantine. It’s, like, unbelievable. But it was one of the first books I read. And I want my kids to read it. I’ve given it to a couple of my candidates. I just think, again, it’s about finding your value in life, finding your mission, your purpose. It’s not preachy, it’s all wrapped into just a great fun, interesting story.

Mario Fachini [55:40]
Excellent. Those are great books. And I thank you for those recommendations. This has been a blast. I wish we had more time. But where would you like people to learn more?

Kim Daly [55:51]
If you would like to learn more about my free consulting service, absolutely go to my website, which is www.TheDale, that’s my last name, D-A-L-Y, TheDalyCoach.com. My candidates would say, “Kim, if I could just get a daily dose of you.” And I was like, “Wait a minute, I could do something with that word Daly.” So my website has a library of franchising and business coaching videos, blogs, hundreds of testimonials. I even have video testimonials from former candidates where I filmed them inside their franchise locations. Some of the best work that I’m the most proud of. Just lots and lots of resources on my website. I’m also very active on LinkedIn, and Facebook, on YouTube. You can find me any of those places.

Mario Fachini [56:39]
Excellent. Well, thank you again, Kim. It’s been a pleasure.

Kim Daly [56:42]
Thank you for having me. Great to meet you.

Mario Fachini [56:45]
All right. Expert Authority World, we have another great episode here today. I’ll see you tomorrow. Have a great day. And God bless.

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Mario Fachini [57:27]
Hey, thanks for listening to today’s episode. I hope you got a lot out of it. I know I sure did. If you haven’t done so already, I invite you to subscribe to the show. And also be sure to check out EAInterviews.com for complete show notes, the full interview video experience, links to the resources we mentioned, and more. Have a blessed day and I’ll see you tomorrow.