How to Avoid Four Common Mistakes: Franchising Advice from Rick Del Sontro

Million Dollar Monday

Nov 29 2021 • 21 mins

Rick Del Sontro offers expert advice on franchising, including what investors are seeking and common struggles to avoid in starting up a business. As founder of a company that was named to the Fortune 500 List of the Fastest-Growing private companies for six consecutive years, Del Sontro knows what it takes to drive success.

Chapter Summaries:

Key Takeaways

  • My advice would be to make sure you have one to three locations where you’re getting it right.
  • I've always had that entrepreneurial urge in itch. I'd always tell people if you have it, it's not going to go away. So you better deal with it.
  • On your own and all alone is a recipe for disaster.
  • I figured out what was going wrong was that I was spending too much time working in the business and not enough time working on the business.
  • Inherently young franchise concepts all struggle from the same things:
  • Number one, they're typically under capitalized. They don't understand how expensive it is to really scale the business.
  • Number two, they know everything about that operating business that they built, but they know very little or nothing about franchising, completely different industry.
  • Number three, They struggle with franchise sales.
  • Number four, is they're put in this situation where they have to hire certain roles in their business to support their franchise community, no matter how small that might be. But the economics of doing that don't make any sense. We felt like if we could go in and, and eliminate those barriers, we could find really good concepts and help scale them and grow them.
  • Life's all about learning from previous mistakes. That's franchising is genius because you build a system based not only upon successes, but the elimination of things that didn't work.

Resource Links


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