From 0 to 100 Units: The Formula for Franchise Growth

thank you very much Danielle and welcome everybody thank you all for joining us on this great call and the topic here is from zero to 100 units the formula for franchise growth and um a little bit about my story you know I started this in my parents dining room in 2008 with a laptop and a vision I like to call that Vision our guarantee there's no way things or but so we will be the largest Fitness brand in the world and uh you know back then I used to say 15 20 years now I'm going to say about 10 years because we're already on our way but we've literally been able to do what no one's ever been able to do before we have created a new category that never existed okay there's no brick and mortar we bring the work out to you we service over 1350 cities throughout the U.S Canada and the United Kingdom over 500 plus team members and growing rapidly we're on Pace to open another 75 to 100 locations this year uh this year is going to be an incredible year of growth for us but you know prior to starting this you know and you know remember this is in 2008 so this is before the pandemic people told me I was crazy this is a horrible idea people should go to the gym look if you try to think back in a day think about how many how much opportunity you had to get something healthy like just think about that for a second like where can you go to get something healthy most people are going to McDonald's going to you know a fast food joint there was nothing now this healthy salad places and you know juice bars and so on and so forth that's continuing to to grow so health is going to continue to scale the problem is people are naturally procrastinators they're not going to turn on the app those pelotons and treadmills become the most amazing clothing racks and I love when I saw Lululemon bought the mirror I love that one I saw it happen and I literally said out loud this is not going to last and look what happened they sold the company because it's not going to work it's not going to work to get Real Results you need accountability that's not going anywhere we're not a fad we're a lifestyle and at the end of the day artificial intelligence camera place where we do chat gbt camera place where we do robots camera places what we do because human interaction again will never go anywhere and I'm sure everyone on here has ordered off Amazon in the last five minutes the last hour the last week chances are you're a Prime member if you're not I pass out right now on the floor but that's the world we live in and that's not going to change but you know for me you know prior to sitting in my parents dining room I didn't know what I wanted to do um you know people look at me as this motivational person but at the end of the day I was actually depressed suffer from anxiety you know was told to get a nine to five job and that's what I did I was you know I was training and I was very successful as a trainer but being a trainer I always say is not scalable right you know it's like a doctor a doctor without patience is unemployed and a trainer without clients is unemployed so I gave up literally making you know a little over probably 200 000 a year in my early 20s as a trainer to take a 35 000 job in a marketing firm and this was like what was really eye-opening for me and I started looking into some of these statistics do you know that 85 percent of people drive to work every day committing spiritual suicide they're miserable they hate their job Monday horrible right oh my God it's Monday usually around seven o'clock Sunday night everyone develops that anxiety then it's like Wednesday today's Wednesday it's the halfway point and then Friday's here and everyone lives for a two-day work week well that's really horrible and that's why I always say at the end of the day you got to follow your passion passion is everything when you follow your passion you're going to have success so being around all that negative energy that's what kind of got me back into fitness and that's what got me to you know start this company and I'll tell you you know I always like to say the easy way never pays well and um you know I still own 100 of this company I've been through more more pain than you could possibly imagine and more challenges than you possibly imagine but at the end of the day when you believe and your belief is strong enough and you have that commitment to not quit and never give up no matter what you never tap out no matter what it always works out and from my parents dining room you know I got out of my parents dining room I never forget my wife my girlfriend at the time told me I was absolutely crazy to go into an office which is probably about the size the whole office is probably the size of my office now and um I was paying I don't know 800 a month and then pretty much for the next 14 years I just stared at basement walls and now I own this 18 000 square foot building with Windows it took took 15 years to get Windows but you know anything is possible as long as you put the work in you got to put the work in so at the end of the day you know I'm coming on here to kind of you know share the story and kind of let you know at the end of the day what what it really takes and you know I always say this success isn't given it's earned and you got to put that work in and you you have to obviously be consistent and you have to never ever quit and you know I I always I like to say anything is possible and you can always make the impossible possible one story that I like to share with you because people are blown away by these stories I don't know if you guys can see the tire on my wall but I'm very in to shipping people tires I actually love shipping people tires now this tire is a different one it's actually a regular Tire I like to ship 18 wheeler truck tires now I don't like to really give out my secrets but I'm going to give it out because I know no one on this call is going to do this because it's just too much work involved but if you do I would highly recommend it's a great it's a great idea so I'm giving you some of my goods but pretty much I like to ship out 18 wheeler tires and the message I put on the tire is my drive in intensity will leave tread marks all over your floor we need to connect tires have gotten me into the most powerful pretty much the most powerful people's doors you could you imagine in the world and one person who I love that I'm very obsessed with is Phil Knight the founder of Nike and if you're into business I would implore you to read the book Shoe dog it's the greatest business story you'll ever read in your life and one day I was telling my team that I am going to meet Phil Knight and everyone's like come on look at me hear me film that I'm gonna meet Phil Knight so I got a box the box is big enough I could probably fit Michael Diane Maria Alex and Steve you could probably hop in the Box too okay the book again is shoe dog shoe dog by Nike but the box was so big and in that box I had the tire a heartfelt letter a 20 30 of canvas of Phil Knight his younger years and the tire right the Firestone Nike stated if you were lucky you would get that package back within six months to a year but due to the amount of packages Mr Knight gets you're not you're most likely not going to get anything back and they also made it very clear if you do not put a prepaid package in the package they will not ship it back now I didn't want the tire the tire was to send a statement anyway the Box goes out seven days later my door opens up with that giant box again addressed to me from Phil Knight so with the anticipation of a four-year-old child I rented a box open up the box what's in the box in the Box was designed Tire the signed canvas the sign book and I was like blown away I was like wow I was like I'm I'm just I'm like Superman I could do anything I'm just Unstoppable so now here's where the miracle stops right most people at that point would not would would not proceed to get to the next level so I consistently made 62 62 phone calls on the 60-second phone call I got in touch with Lisa mckillips Phil Knight's Handler for over 35 years and we were set to have dinner literally have dinner with Phil Knight in March of 2020 covet hit so that couldn't happen right so for the last three years I've been building that relationship and now at the end of July I'm actually having dinner with Phil Knight and I share that story because I want to talk about some of the struggles along the way but I want to let you know that anything is possible and you could do you could do anything you could do anything if you put your mind to it now the biggest issue that I suffered with along the way was cash flow right cash flow now I I actually um some of my team members call me the wizard I have a gold calculator here which is like an inside joke because people don't understand how I come up with this gold and I make these things happen over the years thank God we don't suffer with these problems anymore but knock on wood I got a double knock on wood because man it's again I said it's a price to pay right there's a price to pay but one night literally I'll never forget I was uh set for payroll on Monday I had to come up with twenty thousand dollars and I didn't have 20 grand I was thinking of everything I could possibly do and I said you know what this is really crazy but I live in New York I'm gonna ride out to New Jersey and I'm gonna go out to Atlantic city where the casinos are I have about five thousand dollars left in my savings I could play Red obviously red Red's our color right so we got to represent red I'm going to play my color I can hit it a couple times if I hit it I'll make payroll everything will be done right so I drive out there Friday night three hours I get there and I'm sitting there and I'm pretending and I'm like okay let's pretend I go in now it hit red I'm like oh my God I would have won all right all right I'm gonna do now let's do one more time it hit red again and I sat there and I'm like I just can't do this I can't do this it's just a really bad idea it's got to be another way I was speaking of one of my mentors at the time and he told me I'm absolutely out of my mind he's like do not do that figure out another solution now the weekend's here right the bank on Saturday closed at one o'clock I came up with an idea and I gave out over a hundred free sessions to my clients who were new packages I could not take credit cards because I needed the money in my bank by Monday so I literally drove around all morning picking up checks and I only needed 20 grand I ended up raising 46 000 in a couple hours and made my payroll so another proof in the pudding there's there's always a way to make it work some other challenges along the way when I started gym guys gym guys are the Z I knew that people were going to go to the website gym guys with an S so I knew I needed to buy that domain because until the brand becomes worldwide and and recognized I have to get that domain well there was this guy Al Helen in Denver Colorado who I still talk to to this day he owned gym guys with an he was selling it for forty eight thousand dollars I didn't even have 48 cents so I kept calling him and calling him and trying to buy the website I wouldn't stop then they started getting to the point where he's like this is getting out of control if you keep this up I'm gonna call the police you need to stop calling me I'm not saying I'm not you know I'm not giving you the website if you want it's 48 Grand so I did some research on his domain I got his address I bought a one-way ticket to Colorado I flew out there to his house to talk to him okay I like to say the action takers are the money makers if you don't take action you're never going anywhere so anyway I go to his house he's not there I'm like all right maybe they're out I'll come back later I go back later he's not there and he was you know he wasn't really in like the Denver he was like kind of more like a rural area but there was a house down the ways that you could see within squinting business I was like maybe they know Al I'll go down there they said oh yeah we know Al's away this week with his family I'm like you got to be kidding me I was like when does he come back it's like he comes back next week so obviously I couldn't stay there for a week waiting so I wrote him a note left a note with them left him a message he as soon as he comes home he tells me he's calling the police this has got out of control this is harassment on a whole nother level and I'm actually getting a little scared now I just said Al listen I am not doing anything to you I'm harmless I need that website I'm going to build the largest Fitness brand in the world do you not feel my passion like my passion is dripping through your phone right now I need the website you're not even really using this website can you just give it to me that was on 71 attempts took 71 transactions back and forth he gave me the website for free and I actually have the ticket framed on my on my shelf right there so what what is so so what is the key to success here it's just you never stop there's no secret there's no key to it you just never stop you have to be consistent and I always like to say you know when I talk to you know potential new franchise Partners I ask them if they brush your teeth twice a day and everyone always smiles and say oh yeah yeah I said oh really I said that's great so I say well tell me a little bit more so I can understand like what happens if you stop brushing your teeth the next eight weeks oh your teeth are gonna rot you know you're gonna have serious Pro of course same rules apply in your life and in business now before I open up for some questions I want to tell you one more thing because this is going to change everybody's life right right right this instant if you listen to me the number one most important thing is movement and taking care of yourself and people always ask me how are you so confident how do you become so confident and the answer is I want you all later to to get naked and stand in front of a mirror and I want you to look at yourself and I want you to honestly ask yourself how do you feel about the way you look and if you're not happy that's up to you to change but if you start changing your habits and you start exercising and I'm not talking about going for a walk I'm talking like going for a walk with some Sprints doing things that are hard suffering is the most important thing and you should be leaning into it daily I suffer every single day with my workouts I do things that no one would ever be able to do and I've trained myself over the years to do that but that's because I'm unstoppable and I'm the greatest in the world and you might say wow this guy is really out of control and he's really conceited no I'm not conceited this is what I believe and you should believe the same thing I am confident and I believe in my abilities myself and I believe that no one's better than me and when you do that and when you train yourself because your mindset is the most important important thing you have and when it comes down to business in life it's about 90 mindset it really is and when you put yourself through suffering on a daily basis I laugh when someone serves me with a lawsuit I laugh when the problem happens it doesn't faze me I'm literally I got one of my team members headed to uh the Javid center with the van this morning this happened this morning to drop off the van for the show um for the next couple days and someone smashed into the bumper and I just laughed at it and he said why are you laughing I said because this too shall pass I said this is that bad I was like we got it fixed and he's like okay he's like wow okay I didn't think that you know you'd react like that this too shall pass that applies to success and that applies to failure but I will tell you one thing if you do not put yourself through difficult situations you're never going to move the needle and get to the and get to that point of being the greatest and and that's really what it comes down to but I like to open up some questions I figured I'd leave 15 minutes for some questions so uh ask away well I'll kick it off so I mean I definitely agree that mentality and I think that you know a tenacity really for success is huge so then I guess my question is you know from a from a standpoint of of trying to to grow what what tactics or specific tools or you know implementations from a marketing approach have you guys applied to really find that level of success outside of you know the the drive and and the motivation so um look the personal branding that I've done has been very powerful right because what happens what happens is at the end of the day you know social media is your resume okay it's how people look at you and I'm actually extremely introverted you might not believe that but I really am I don't have any friends I have one good friend that's it I don't hang out I don't I've never been drunk I don't smoke I don't never smoke marijuana I am like as clean as a whistle all I do is drink water and get my workout on that's what I'm all about and I love to play Ice Hockey too but I do love my brownies as well I love brownies by the way um that's and that's a great story that I'll share in a second because that's also to answer this question but you got to put yourself out there it's very important if you're not you're losing opportunity people are going to look at you people are going to see you and people are going to research you I've been on some of the greatest podcasts in the world that have millions and millions of views I run a podcast myself my top episodes got over like 300 000 downloads um all this has helped me sell many franchises uh my friend Gary vaynerchuk I don't know if you know garyvee but I was on his podcast I sold seven franchises from that I'm still getting hits from that today but putting yourself out there is very important and you might be uncomfortable it doesn't matter you've got to lean into that discomfort and you just do it and it's very easy to do it at the end of the day too because you have your phone you take your phone you make a video hey how you doing my name is so and so and today we just sold two of our franchises and we want to welcome our new franchise owners and post it something as simple as that but you you build credibility and you got to understand something when people are looking into franchises buying a business they're going to do a lot of research and when I speak to a lot of my franchise owners they always say they just buy into me they've never met anyone more fired up they believe in everything with the vision and what we're doing and that's and that gives them confidence so that's very important but you also have to be creative so I talked about brownies my first franchise I sold on the vacation in Cabo I literally just got approved for franchising I went on a vacation it was the first vacation I went with my wife before we had our first son and I love brownies gooey fudgy brownies and I had a plate about like 20 of them and I'm walking back to my my table to sit down and this guy comes up to me and we just start talking he's like what are you doing all those brownies and we started having a conversation what do you do for a living long story short he's like my son would love this start FaceTiming with his son I'm literally calling my franchise attorney at one in the morning and he knows I'm nuts so he's like Josh what's what what's going on I was like I need to know what to do I got this candidate I think they're really serious two weeks later I closed my first franchise now that's where most people stop that's a great story you got to be a great Storyteller I'm a great Storyteller I called up Entrepreneur magazine I told him this incredible story I got a free full-page story on the whole thing and then I sold my next three franchises from it and it started taking off like crazy but you got to create omnipresence you got to be out there you got to be present you got to be in people's faces is you go big or you go home right the small little quiet cat doesn't mess with the lion it doesn't work so you got to think like that it's very very important um I saw some questions come in uh I have we're a little over right now we're just touching on 200 locations um this by the end of this year we should be around probably like 250 to 260.

um and uh what's the the hardest hurdle this and there's challenges every single day that never goes away right you know the song More Money More Problems yeah that's legit I want all the problems I want them all I'm the ultimate Problem Solver and you have to be the ultimate Problem Solver but how do you develop that type of resiliency by putting yourself through suffering things on a daily basis weak people go nowhere strong people are what rule the world and you have to develop that strength too here because that's how you win what else we got here uh uh how many franchises do you have it's not Refreshers yeah yeah so I just answered all that what else we got guys come on any more questions this has been like the quietest group I've ever like spoken to so what do you do if you hit the wall so you were talking about um how you exercise and all that other stuff so and you have to be I guess I wrote it down but dedicated and constantly keep moving but what happens if your mindset doesn't allow you to move forward how do you reframe that soundtrack if you will what you're doing is you're allowing your emotions to be stronger than your mind and you never let that you don't negotiate with your mind you need to talk differently to yourself people don't understand something the words you speak are powerful what do you tell yourself every day when you wake up what do you tell yourself every day you know it's funny I I was having this conversation with a buddy the other day I was like we're talking about giving someone 10 million dollars like how excited would you be if I told you you're gonna I'm gonna give you 10 million dollars tomorrow everyone's gonna be fired up but you're not gonna wake up tomorrow No One's Gonna Take the Money you gotta you you have to speak differently to yourself and that's very very important the words you speak matter you get up every day no matter what I'm number one I'm amazing I'm gonna have an incredible day it's it's true and like sometimes if you focus on other situations that you see in the past like I'll just throw out a good one like remember when Tiger Wood Tiger Woods was going through all those problems remember he was on every front page of every paper and then he won the Masters and he's the greatest thing in the world again everything has Cycles has Seasons winning has Seasons losing has seasons things are going to come and things are going to go but you have to constantly just be on top of yourself and look I didn't want to even work out this morning I was so tired I thought I was going to die and I get up every morning at 3 29.

Every single day I'm a sniper's best friend they will get me at the same step every day no matter what it doesn't matter if I get no sleep I will still get up at the same time and do that but you have to force yourself to do those things and imagine how great I felt when I was done I felt incredible but you got to talk differently to your mind and I give you one little tactic that I use I use my family right my children I love my children and I play psychological games in my head because you have to be able to do that in order to get through challenging moments so if you're tired in the morning I just say well I don't get up something's going to happen to my family and I get it right away that's it so if you allow yourself to play tricks in your mind and you develop that strength within your mindset you won't listen to your emotions your emotions can't talk right do you you know your feelings can't you know can't be stronger than your mind epic thank you so so much I I feel like I need to go like run six miles and feeling very Juiced up at the moment so thank you very much for your Insight and uh hey if I show up on your front doorstep begging you to you know work with promo Republic you know where I got the idea from so I'll see you soon hey Danielle can I ask one more question yeah yeah of course please Josh tell me more about your team sure so um I'm very good friends with Brian so this is when I met Brian early in the days um that shine is with Brian right you're one of the concepts with 0202e no no no oh different different okay wrong one sorry but um the culture is very important right culture is very very important culture is what's going to win and um you know I always say you know a good leader always creates other good leaders and I I actually cringe when people say I'm the boss I don't use that word I hate that word I don't even refer to people as employees we have team members and we have Fearless leaders you will catch me cleaning urine off a toilet seat you will literally catch me on a phone call picking up garbage outside my building why because that's what I'm about I want you know the presentation to be as the best as possible so when it comes to team teamwork always makes the dream work and you got to surround yourself with the right people but you also have to know where your strengths are and where your weaknesses are I think it's really foolish when people spend time and energy on focusing on their weakness weaknesses I know where I'm strong at and that's where I stay I stay in my lane and everything else is delegated to other people and that's how you obviously develop a good team and build off that and I have an incredible team and it's funny so I've been mentored by some of the best enfranchising and before he passed uh Fred the Luca used to Mentor me what a great guy and I'll never forget something he told me it was in 2014 at um the New Orleans Convention Center the IFA now this is coming from a billionaire and I was like this guy has no idea what he's talking about that's what I said to myself at the time he's like listen I want you to go back after this show and I want you to look at every single person on your team you'll be very lucky in five years if one's still there and I'm like thinking like people are like no way this one will never leave no way first of all everyone's replaceable second when a rocket takes off at a certain altitude the bumpers fall off because not everyone's meant to be in your life forever certain people can't take you to one point to the next point and so on and so forth just like you don't want negative people in your environment because one negative person will ruin everything it's positivity all day every day and that's what I live on and breathe on and I create this concept called fuel your drive it's the name of the podcast it's the name of my book we have a gas tank that sits in our lobby and the word drive because obviously you can't drive anywhere without fuel is on our walls and we recite it in every meeting Drive stands for determination respect Integrity versatility and Excellence those are our core values and fuel is what is really the pillars of success you cannot run a business without fun Unity earnings and Leadership and that's how we run the business every single day and that's how I align with my team members thanks Josh you got it now any other questions can you say what Drive stood for again please determination respect Integrity versatility and excellence and everyone has to embody those values you know like you can get someone who comes from Google or Starbucks and they can have the most amazing resume in the world and you can be mind blown but if they don't fit the values it doesn't work and you have to stick to those values same rules apply with our franchise owners

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