Your First Year as a Franchisee Will Break You (If You're Not Ready)

Most businesses give you time to adjust. Seasonal businesses don't.   In this episode, we go deep into the reality of high-pressure seasonal franchises, where 80–90% of revenue hits in just weeks—and one bad decision can sink the entire year.   We unpack: -Why "working harder" isn't enough -How seasonality magnifies mistakes -What actually drives customers through the door -The grassroots strategies that outperformed paid ads -Lessons learned from opening hundreds of locations   If you've ever considered a seasonal franchise—or already own one—this episode will change how you think about time, marketing, and execution.   Timestamps: 00:00 – Why seasonal businesses punish mistakes fast 04:45 – The myth of "you can fix it later" 10:30 – 90% of revenue in six weeks: why timing is everything 18:40 – Why most franchisees work hard… and still lose 27:15 – The moment we realized marketing was the real bottleneck 36:50 – Grassroots marketing vs radio ads (what actually worked) 46:20 – The hub-and-spoke kiosk strategy that changed everything 58:05 – First-year franchise mistakes you can't afford 1:09:30 – Why seasonal businesses forge elite operators 1:18:40 – Lessons that still apply to franchises today   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Franchise #SeasonalBusiness #Business

Most people are using ChatGPT to avoid thinking — not to become better leaders, investors, or business owners.   In this episode, Erik Van Horn breaks down exactly how he uses AI as an advisor, not a yes-person. From family-office GPTs and tax strategy to deal analysis, franchise decisions, and leadership judgment — this is how AI should challenge your thinking instead of replacing it.   If you're using ChatGPT to move faster without thinking deeper, this episode will make you think about how you use AI.    Timestamps:  00:00 – ChatGPT Is Making Leaders Lazy (Better vs. Lazier) 01:27 – Why AI Becomes a "Yes Person" 03:54 – Using ChatGPT as an Advisor (Family Office GPT) 06:28 – Preparing for High-Stakes Franchise & Business Meetings 10:55 – LOIs, Deal Structure, and Saving Legal Costs 12:05 – Entity Structure, C-Corps, QSBS & Tax Strategy 16:54 – Why Most Business Owners Have Weak CPAs 20:03 – Augusta Rule: A Low-Hanging Tax Strategy 23:13 – Analyzing Financials & Company Performance with AI 31:04 – Leadership Decisions: Forcing AI to Challenge You   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx#9N5_T&si=ZldjBOqFanGE-JUL   #AI #Leadership #franchising

Most business owners believe their company is valuable because it makes money.   They're wrong.   In this solo episode, Erik Van Horn explains why owner-dependent businesses are worth far less than founders realize, even when they're profitable. If your business only works because you're involved in everything, buyers don't see an asset — they see a job.   Erik breaks down:   -The "most expensive org chart in America" -Why being indispensable kills enterprise value -A personal health scare that tested his businesses -The difference between cash flow and a sellable asset -How to start removing yourself as the bottleneck without blowing up the business   If you want real optionality — whether that's selling, stepping back, or building a better lifestyle — this episode will change how you think about your business.   Timestamps: 00:00 – The most expensive org chart in America 03:45 – Why doing everything weakens your business 07:20 – The pride trap of "I do it all" 11:40 – Why buyers avoid owner-dependent companies 15:55 – A real health scare that tested the systems 20:30 – What a healthy business looks like without the owner 25:10 – $500K working 60 hours vs $350K working 5 30:05 – Why growth can still drain cash 35:40 – Cash flow vs enterprise value 41:15 – The real test of business health 45:30 – Practical ways to remove yourself as the bottleneck 51:00 – The mindset shift founders must make 55:10 – Final takeaway: build for value, not ego   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #EnterpriseValue #Sellable #Systems

I've complained about franchisors — even great ones. But it wasn't until I experienced fear-based leadership firsthand that I truly understood what good partnerships actually look like.   In this solo episode of Franchise Secrets, I break down the partnership levers behind my best franchise deals — the exact ways partnerships have allowed me to scale across franchising, investing, advisory roles, and brand building without working nonstop or needing to own everything myself.   From early family partnerships to building Front Street, I walk through the real-world lessons that shaped how I evaluate partners today — including the difference between control and leverage, why fear kills franchise systems, and how the right partners help you build a much bigger pie.   If you're a franchisor, franchisee, or investor trying to grow smarter (not just harder), this episode will give you a framework you can actually use.   Timestamps:   00:00 – Complaining About Franchisors (Even the Great Ones) 02:25 – Why Leverage Is the Foundation of Great Partnerships 02:47 – Partnering With Family: Lessons From My Parents 04:47 – Why I Don't Need to Own 100% of the Business 06:53 – Lever #1: Distribution You Can't Buy Overnight 10:21 – Lever #2: Credibility and Becoming "The Franchise Guy" 14:03 – Lever #3: Speed, Alignment, and Moving Without Delay 18:04 – Lever #4: Insight and Specialized Expertise 22:03 – Lever #5: Capital and the Solo Salon Studios Story 30:32 – The Ultimate Test: When 1 + 1 Must Equal 11   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #FranchiseSecrets #BusinessPartnerships #FranchiseGrowth

Erik Van Horn and Jeff Herr break down one of the most explosive franchise categories ever created: salon suites. They reveal how the model went from unknown to industry-dominating, why private equity rushed in, and what made it one of the highest-leverage real estate plays in franchising. From early headwinds and financing challenges to scaling 10,000–29,000 sq ft locations, this episode offers a candid, behind-the-scenes look at disruption, growth, and building enterprise value in a new market.   Timestamps: 00:00 – Creating a Disruptive Franchise Category 02:50 – Storytelling Lessons From Napa 05:10 – Discovering the Salon Suite Opportunity 08:20 – The Real Estate Insight Behind Salon Suites 11:50 – When Sola Took Over the Industry Conversation 17:10 – Industry Resistance & Stylist Education Challenges 23:00 – The Million-Dollar Buildout Era Begins 27:30 – Financing Breakdowns and SBA Pullback 31:50 – Why Private Equity Loves This Model 38:40 – Scaling Into 10,000–29,000 Sq Ft Mega-Locations   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Franchising #Growth #Disruption

What separates great franchise founders from the ones who hold brands back?   In this unfiltered episode, Erik Van Horn and Bobby Brennan break down: -The traits elite founders all share -The biggest red flags Erik sees behind the scenes -Why "franchisee-first" founders always win -How to succeed even if your brand doesn't have a strong founder -The mindset shift founders MUST embrace ("It's not my fault, but it's my problem") -Why honesty, transparency, and problem-solving beat charisma and hype every time -How the best founders build trust with franchisees -What happens when ego gets in the way of growth   Whether you're a franchisee evaluating leadership, a founder trying to improve, or part of a growing system, this episode is PACKED with insider truths you won't hear anywhere else.   Timestamps: 00:00 – People are people: why founders and franchisees both make mistakes 00:47 – Why this episode exists: what Bobby has learned from 20+ founders 02:15 – "Great founder vs. disaster founder" — why it matters to franchisees 03:51 – Early red flags when evaluating a founder 04:17 – The power of a clear vision + the "bridge" analogy 05:16 – The problem with visionary founders hiring clones 05:44 – Why founders need charisma AND scars 06:37 – Hard times create seasoned leaders 07:33 – Behind closed doors: the questions Front Street gets to ask 09:49 – Franchisee-focused founders vs. bottom-line founders 11:37 – The integrity test: Item 7, Item 19, and honesty 13:25 – Ego, feedback, and what founders must get right 16:07 – The rough-around-the-edges founder who became a rocket ship 18:21 – Why selling "the hard truth" builds stronger franchisees 19:50 – The problem-solving mindset: "It's not my fault, but it's my problem" 21:40 – What GREAT founders do every day 25:30 – Who gets credit for success? (Spoiler: not the franchisor) 27:05 – How the best founders deal with unfair criticism 30:46 – How founders build trust 34:47 – Trust killers: legal letters, pointing to the FA, hiding problems 36:48 – Do the best founders invest in coaching and mastermind groups? 41:53 – How two top founders grew in totally different ways 45:49 – Why franchise brands must lean into AI NOW 46:37 – The final takeaway: quantify the leader YOU want to follow   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Franchising #Leadership #Founders

Hiring the wrong marketing leader can quietly destroy franchise growth. In this episode, Erik Van Horn and Aren Johnstone break down why CMOs from outside franchising—especially those coming from e-commerce or big-brand backgrounds—struggle and often fail inside franchise systems.   They reveal why franchising operates more like a political system than a corporation, how franchisees hold real power, why innovation gets blocked, and the cultural mistakes that erode trust.   If you're scaling or building a franchise, this episode will save you years of painful hiring mistakes.   Timestamps: 00:00 — Why outside marketers fail inside franchise systems 02:17 — AI, prep, and Aren's approach to productive conversations 04:28 — Inside vs outside franchising: the hiring dilemma 07:29 — How Franchise Ramp stays franchisee-first 09:42 — Why top-tier vendors avoid emerging brands 13:09 — Big-budget marketers vs the reality of franchising 17:39 — Why inside hires get stale & outside hires hit walls 23:09 — The political structure of franchising 30:48 — Managing difficult franchisees while protecting culture 41:41 — The winning hiring formula Aren recommends   Learn more about Franchise Ramp here: https://franchiseramp.com/   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Franchising #Growth #Leadership

In this episode, Erik and Adam unpack one of the most misunderstood levers in business: the speed of learning. Adam explains why the brands that win are the ones that learn fastest — not the ones with the biggest budgets — and why "failure" is the wrong word entirely. They dive into growth mindset vs. fixed mindset leadership, how to evaluate people you work with, how leaders accidentally kill innovation, and how to build teams that tell you the truth. They also touch on personal stories around kids, parenting, praise, and competitive sports (including Adam's controversial crossover into pickleball 😆). Whether you're a founder, franchisee, or emerging leader, this episode gives you frameworks you can use immediately to make better decisions, reduce risk, and grow faster.   What You'll Learn:   -Why speed and agility are the true competitive advantages today -How validated learning beats traditional "failure" thinking -Signs of fixed mindset leadership (and how to avoid it) -How Adam evaluates founders before coaching them -Why ego slows growth and how to build a truth-telling culture -Parenting parallels that create future leaders -The connection between flow state, performance, and openness -How to reframe team conflict using curiosity instead of defensiveness   Who This Episode Is For: Franchise founders, CEOs, franchisees, operators, multi-brand builders, investors, and anyone who wants to grow faster with fewer mistakes.   Timestamps: 00:00  Why speed and agility are the ultimate competitive advantage 01:53  Consumer brands, noise, and how customers choose today 03:29  Distribution is no longer a moat; brand is everything 04:31  How elite leaders think about resource allocation 06:14  Adding people: expense vs. investment 07:05  "Fail in a week, not in three months" — and why 09:11  Growth mindset vs. fixed mindset — definitions that matter 12:30  How Adam tests whether a founder has a growth mindset 16:54  Parenting parallels: praise the effort, not the outcome 28:50  How fixed-minded leaders react vs. growth-minded leaders   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Growth #Leadership #Franchising

AI isn't here to replace entrepreneurs—it's here to amplify how we think. In this episode, Erik Van Horn breaks down exactly how he uses AI as a "thinking partner" to analyze FDDs, research industries, and uncover opportunities that 99% of franchise buyers overlook. Learn how to build your own custom GPTs for research, due diligence, and marketing—and why the right inputs always lead to the right output.   Timestamps:   00:00 – The GPT Should Know Everything About You 02:33 – Using AI as a Thinking Partner 04:04 – Treat AI Like a $10,000/hour Advisor 06:21 – How I Built a Website in a Day With AI 07:40 – Building Custom GPTs for Your Brand 10:11 – How I Use AI to Analyze FDDs 12:24 – Spotting Private Equity Opportunities With AI 17:00 – Create Better Prompts, Get Better Results 20:20 – AI as Your Copywriter, Not Your Voice 26:37 – Analyzing Item 7 and Item 19 With AI   Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL   #Franchise #AI #entrepreneurship

What does "semi-absentee" actually mean — and what does it cost to get there?   Erik Van Horn shares the hard-earned lessons from owning multiple franchise brands, including the moment his manager got arrested right before tax season. Instead of panicking, his systems held — revealing the true power of leverage and layers.   You'll learn: ✅ The difference between managing and truly leading ✅ How to build redundancies that protect your income ✅ The real ROI of buying back your time ✅ How to move from owner-operator → district manager → semi-absentee ✅ Why freedom in franchising isn't free — but it's worth it   Timestamps:   00:00 The Call That Changed Everything  02:00 Why Most Franchise Owners Never Go Semi-Absentee  04:30 What Semi-Absentee Ownership Really Means  07:30 From One Location to Many  10:00 The Multi-Unit Manager Mindset  13:30 The Moment Systems Saved My Business  16:30 The Real Cost of Freedom ($150K Lesson)  20:00 Buying Back Time: The Practical Playbook 24:00 The District Manager Trap  28:00 Freedom Through Structure    Connect with Erik Van Horn: 🌐 Website - https://franchisesecrets.com/    📷 Instagram - https://www.instagram.com/erikvanhorn/   👍 Facebook - https://www.facebook.com/erik.v.horn/   💼 LinkedIn - https://www.linkedin.com/in/evanhorn/    Best Franchise Starter Playlist: https://youtube.com/playlist?list=PLEEithd54kMlgRgsBAo4LWNCMSOthnK0r&si=TD1z25-ie2d23rGm https://youtube.com/playlist?list=PLEEithd54kMle5_OUXiuLbc_UPBtz1vTE&si=uCOgDya1VnnCarDf https://youtube.com/playlist?list=PLEEithd54kMk2Kw07KwZGWgF8UTx9N5_T&si=ZldjBOqFanGE-JUL    #Franchise #Freedom #Systems