The discussion kicks off with an exploration of the franchise model, where Steve breaks down the prerequisites for a business to become franchisable, emphasizing the need for a replicable system that doesn’t rely heavily on subjective judgments. He explains why franchises like McDonald’s thrive on systematic operations, making them ideal candidates for this business model. The trio discusses the critical first steps in franchising, including assessing the scalability of your business and understanding why franchising might be the right—or wrong—move for your business.

Further, Steve details the financial aspects of franchising, from upfront fees to ongoing royalties, explaining how franchisors make money while supporting their franchisees. He also touches on the legal frameworks that safeguard both franchisors and franchisees, ensuring transparency and accountability through comprehensive Franchise Disclosure Documents and robust franchise agreements.