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TRANSCRIPT
Franchising Your Business: Interview with Franchisor
Kirk Lance of
Insights about franchising and franchising your business from experienced franchisors
Interview By Franchise Lawyer Charles N. Internicola
www.FranchiseLawSolutions.com www.BusinessandFranchiseLawInterviews.com
The Internicola Law Firm, PC | 800. 976.4904
! THE INTERNICOLA LAW FIRM, PC
National Franchise Lawyers
www.FranchiseLawSolutions.com
A note from Charles Internicola, Esq.: What Is “The Franchisor Interview Series” All About?
Dear Start-Up and Established Franchisors,
s a franchise lawyer who spends a large amount of time assisting experienced franchisors with the various stages and steps of franchising a business and also being a managing member of my own franchise company, I am always
looking to find experience and advice about franchising a business to share with my clients. My goal in gathering and sharing information about franchising is to provide our clients with more than just legal knowledge during the franchise process but rather to also offer them business knowledge about the in’s and the out’s of what has worked for others who have been through the franchising process themselves. Recently, I had the privilege of interviewing Kirk Lance, the founder and franchisor of Aprisa Mexican Cuisine a company that offers high-quality Mexican food in a fast-casual dining experience. Kirk had some great insights about franchising, his role as a franchisor and his company. What follows is the transcript of our interview. Sincerely,
Charles N. Internicola P.S. If you don’t have a copy, feel free to contact my staff at 800. 976. 4904, to get a complimentary copy of the audio CD of this interview. P.P.S. Also, if you are a franchisor or franchise professional, feel free to contact my staff (800. 976. 4904). We would be glad to hear from you.
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The Internicola Law Firm, PC
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Charles N. Internicola: As part of our continuing series about franchising your business, today we have the actual benefit of speaking with Kirk Lance. Kirk is a franchisor; his company is Aprisa Mexian Cuisine and Kirk had agreed to spend some time with us and share some of his insights about franchising, the process of franchising his business, and actually letting us know about his company, Aprisa Mexican Cuisine. Thank you for your time, Kirk. Kirk Lance: Thank you for having me. I appreciate it. CNI: So, Kirk, what we found really interesting about your business are two things. I'm a big fan of good Mexican food, and what I found
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really appealing was the idea that it was all fresh; the foods you're preparing – sort of gourmet Mexican – but also the innovative way that you've set up your restaurants. Could you just describe that a little for us? KL: Yeah, you bet. Let me give you a little bit of insight into the menu, and then I'll talk about the building just briefly. But you hit the nail on the head: everything we do is fresh; prepared in house daily. Our menu isn't extensive. We basically offer six items that can be curtailed to whatever your desires are. So we have burritos, tacos, tortas, quesadillas, and taco salads, and then you can add or take away whatever ingredients, in that, that you like. And so by having a restricted, smaller menu, we’re able to really focus on making sure that our recipes are as strong as can be and as fresh as can be. And then, as far as the building is concerned – this is, I think, where we really separate ourselves from any competition. What we do is: we manufacture all of our locations from recycled shipping containers – these are steel shipping containers that are crossing the oceans as we speak. What's happened in the U.S. is: the U.S. imports far more than it exports, and so, consequently,
Kirk Lance of Aprisa Mexican Cuisine Interviewed About “Franchising Your Business” with Franchise Lawyer Charles N. Internicola A franchisor discusses franchising and issues that you should consider when franchising your business
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these steel shipping containers are coming over here in droves, and they're not leaving nearly at the same rate. So you have them just building up in container yards, so you can purchase them relatively inexpensively. And then what we've done is: we retrofit those into a really pleasing design. And the benefit – or one of the benefits –is: we have really small buildings; about 380 square feet. So, that's 380 square feet that you're heating and cooling and insuring and staffing and purchasing, versus a typical franchise restaurant, which would be – minimum 2,000, or 2,000-‐plus. CNI: So, I mean, it's definitely a compelling concept, and the architectural elements there – Kirk, what many people ask us about is – so, you've gone from concept –and a prototype – and, actually, an innovative one – and then you took the steps of franchising your business, and now you've gone through the process where you've sold, I believe, at least to one franchisee already; is that correct? KL: That's correct, yeah. I just wanted to mention – as far as the timeline is concerned, this has been something that I've actually been working on for over 20 years. When I
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say that, I don't mean specifically that this exact concept existed in my mind 20 years ago, but the foundation of it certainly did. And so through trial and error and refining, we got to a point where I felt like we really had a good, solid base of systems and concept that would be desirable to a franchisee and that could yield profitable business for a franchisee. CNI: Well, let's go through a step-‐by-‐step process, because you used key terms that come up often for someone who wants to franchise their business – one of which is "systems." That's something I want to talk about, but let's take our listeners to the first step, and then when we get back into systems, I'm going to ask you about your construction, also, so there came a time – and you used a term that I love, by the way, and I use often, actually, with my children, which is "beginning with the end in mind." And when you described it, I thought it was right on target – that when you established your business, you had, in the back of your head, franchising and to build up a business that you could franchise later on. Now, when you reached the decision to franchise, you reached out – did you work with a franchise lawyer? KL: I did. I found a local attorney that
Before (left) and after (right) photos of a recycled, shipping container transformed into an Aprisa Mexican Cuisine restaurant.
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specializes in franchising and worked with him to develop our franchise disclosure document, as well as our franchise agreement. And then once we found a franchisee to purchase our first franchise, I worked with that same attorney to ensure that the process was done correctly with the franchisee.
And I think that's just an absolute key thing. Using an attorney that
specializes in franchising – franchising law – is – it's complicated. And I heard one guy put it in an interesting metaphor. He said it would be like going to your ear, nose, and throat specialist for a brain tumor. You want to stick to the specialists who know what they're doing. CNI: And, Kirk, from our discussion, I – which I was glad to hear – you had a great experience with your attorney, and it worked very well for you. In terms of any individuals listening to this CD – and they want to get some insight and say, "Hey, Kirk, was there anything that you thought maybe you could've put greater emphasis on or worked with your attorney more on or been given additional support, during that development stage?" – what advice would you give to those prospective franchisors?
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CNI: I think that's good advice. I think that's solid advice, actually. And what I – just my two cents on that is to let anyone know that when they are engaged in this franchising process, I think they need to understand that there's great flexibility; that there's no need to follow some cookie-‐cutter format; and that you could really create a dynamic franchise system and a legal program that matches your business. And it's important, because once you launch your franchise, you need a system that actually works in reality. You don't need legal documents that basically work in isolation or in theory but, day to day, when you're selling franchises and looking to protect your business, really don't customize and meet your particular business. But – so, you made a decision to franchise your business; you worked with your franchise lawyer. One issue, Kirk, that you've emphasized, that I can tell you is a big issue for many clients that we discuss all the time, is related to systems. So, if someone's hired their franchise lawyer; they're working with their franchise lawyer and establishing a compliance program – on our end, in our firm, we do go over system components, and we work with our clients about how to define their systems, but for someone who's not experienced with franchising, the word "system" is sort of odd. And could you shed some light as to what you view franchise systems to be and what a startup franchisor should consider them?
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KL: “The advice I would give is: your franchise attorney is a wealth of information. If they've got any history at all as a franchise attorney, they've studied and seen successes and failures, and to be able to garner from that information is paramount. So, one thing that I would suggest to any potential listener that's considering franchising is: talk to their attorney and just find as much about case study as you can, about – from a franchise attorney: their
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successes, their failures, what they've seen in the marketplace. There's just no substitution for experience. I really believe that, and I truly believe that an experienced franchise attorney has probably seen more than most, as far as that. So, I guess, to summarize: learn what they know, 'cause they've seen it work and they've seen it fail.”
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KL: Yeah, absolutely. When considering system, I think the simplest definition we should look for is: can the business perform without you standing in the middle of it? Can the business – whatever your designated chore is, or whatever you're trying to achieve –is there a system in place to allow that to happen without your intervention? And so let me give you, from my personal experience – we're a restaurant franchise, so we're working with multiple components to create a very specific product that needs to be the exact same, time after time after time after time; has to be the same as it was yesterday, as it is today and will be tomorrow – and it has to be the same at this location or that location, etc. So, it adds some complexity, because we're dealing with multiple ingredients, multiple people, multiple
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temperatures, multiple – the variables just continue to build. So, what we have to do is put in systems that allow the creation of our product to be exactly the same, time after time after time. You can take the person away, but the system remains. Take the person away; replace them with another – and the product result is the same. And that's what our focus is when creating systems. As I mentioned earlier, when I started, I began with the end in mind. So, when I was considering, for example, my menu – how complex do I want my menu to be? The more – the less – the more complex the menu is, the less potential – or the more – the greater potential for mistakes, let's say. So, my goal at that point – keeping that in mind – became to
“…there's no need to follow some cookie-‐cutter format… you could really create a dynamic franchise system and a legal program that
matches your business!”
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create a simple menu that still appealed to our guests; still gave them something that they felt like they were getting something different but something that could be duplicated time after time after time. And those systems don't just stop there. They don't just stop with the food, although that's primary. Without that, we have nothing. But management systems – as far as how the managers deal with the staff – is – systems, as far as when you bring a new employee on board or when you terminate an employee – those systems have to be in place, to make sure that all of these processes that we handle every day, as business owners, can be done by somebody else, relatively easily. And easily learned systems are another key part of that. CNI: I – Kirk, I think that's a great description. And for many startup franchisors, there's always this question, "What are systems?" And we have worksheets we give our clients, but from your description – I think it's a great one – what I think listeners should take out of this is that systems really relate to the how – how you operate your business: the types of equipment you use; the product menu; what ingredients you use, in the case of a restaurant; the point-‐of-‐sale system you use to manage your information. And so for a startup franchisor – I'm taking from Kirk, and I agree with this – is – your systems are really what makes your business what it is – and how you operate, how you manage, and how you advertise. And Kirk's viewpoint of "the
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simpler the systems, the better the franchise" – I firmly believe in. And less is definitely more, when it comes to refining a process that franchisees could follow. KL: Exactly. CNI: So, you have no idea how much that discussion and what you've described helps out many of our clients, because systems are a big deal. One thing I wanted to convey, too – because this comes up a lot – is: I frequently tell my clients that we're going to work on the systems, and we'll identify them and get them in the FDD, and we actually assist our clients with their operations manual. But I tell them that their systems are going to evolve, their operations manual will evolve, and what it is today when you launch your franchise – it's going to take small steps and keep improving. KL: True. CNI: How do you feel about that? Do you agree with that? KL: Oh, 100 percent. I think it doesn't matter if we're franchising or if we're working a job for somebody else or we own our own business; we have – and just wanted to continue doing that – but we're in an ever-‐changing world, and we have to expect – and our franchisees have to expect – that that's going to be true for us, as well. Now, with that, I think – becoming a franchisor – something to keep in mind is that change isn't all easy for anyone, and so when you have a big change in a franchise
More about the interview…
1. LISTEN TO AUDIO PODCAST between Franchise Lawyer Charles Internicola and Franchisor Kirk Lance by visiting: www.BusinessandFranchiseLawInterviews.com;
2. ORDER A COMPLIMENTARY COPY OF THE CD of the interview with Kirk by visiting our website or emailing a request to [email protected];
3. ORDER A COMPLIMENTARY COPY of “The Franchise Formula: A Guide to Franchising Your Business” by visiting our website www.FranchiseLawSolutions.com
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system – or even a small change, for that matter – making sure that all your franchisees are on board can sometimes become a challenge. But, no, you're exactly right. How we do things yesterday doesn't necessarily mean that's how we're going to do it tomorrow, and typically those evolutions are for the better. We determine easier or better or more lucrative ways to do things, and it stands in everyone's benefit that we implement those. But if you look at, for example, McDonald's – they're one of the largest franchisors in the world – what they were doing in 1965 and in 1975 and '85 and '95 are completely different systems. Their model stands the same. You would still recognize it in '75, '85, and '95, but I think we can all agree that the business has changed dramatically. CNI: Right. So, Kirk, I'm going to ask – one question I really want to ask is about your business, but I'm going to leave that one for last. But what advice would you give, say, if you had to pick three pieces of advice – very brief – that you would give to someone who has a successful business, is very seriously considering franchising, but is not sure; hasn't taken the next step and thinks they want to go there but not sure? What's some advice you would give them?
KL: Do a lot of research, first. I think we could find a lot of businesses that are successful, but when we analyze what it is that makes that business successful, we won't always determine that
it's a duplicable thing, that – for example, I mean, one topic comes to mind is: somebody might have a successful medical practice or a successful law firm, even, and what makes them successful is most likely the doctor or the attorney involved. And that's not necessarily a duplicable system. So, my first
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piece of advice would be to really determine if what they're doing can be duplicated – and duplicated not only in their area, but, if they're considering nationwide franchisees, is it a system that works across the U.S.? The next thing I would keep in mind is that you're giving up a piece of control. Even though the franchise disclosure document and the franchise agreement are very stringently going to specify how things are done, you're still dealing with people and personalities, and people want to change things and tweak things and negotiate things. And so being malleable sometimes is a piece of the puzzle that we didn't anticipate in the beginning. So, I just think that that's something to keep in mind. And then I think a third thing is: it's a lot of work, and it – if you want the results, you've got to put in the work, and there's a lot of it. I think the fruits of our labor will be fantastic, but it's not going to be without work. CNI: Kirk, that's great advice. By the way – I mean, really great advice. When you mention "malleable" – I agree with that. A good compliance program is not some rigid "you have all the power in the world" type thing, because it's just not realistic, and it's not enforceable, many times – and doesn't even work for you as a businessperson. The other thing is the hard work. I agree with you. And on the franchisor perspective – because I do manage a franchise company, also – I agree; it is hard work, but it is absolutely enjoyable. Kirk, the most important thing – actually, something I'm really interested in, because I like unique businesses that really focus on a niche market and a very specific selling point – what do you believe has been the biggest differentiator for your business, so far, in terms of marketing and perception among consumers?
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KL: Our locations are 100 percent walk-‐up and drive-‐through. However, our food – and this is, I think, where we really differentiate ourselves – in my opinion, there's a void that exists between fast food and sit-‐down restaurants. And I think in today's world, where mother's working, father's working, time is becoming a much more valuable commodity than it ever has before. Families are losing the ability to sit down and have dinnertime together and have meals together. Oftentimes what they substitute that with – something fast food, through the drive-‐through, or they try to go out. Well, economics being what they are, going out and sitting down at a nice fancy restaurant isn't always an option, and the quality that you get from most fast food doesn't appeal to people that are even slightly health conscious or wanting something fresh. So, our goal is to fill the void that exists between that. We have a very healthy product: very fresh, very flavorful. But we deliver that through a drive-‐through window, and so, on the way home from work, either parent can pick up dinner for a very reasonable price, for the whole family, and they can sit and enjoy each other's company and enjoy a healthy, flavorful meal together. So, as far as differentiating ourselves – as far as our consumers are concerned, I think that's the thing that makes us successful today. The thing, as far as being a franchisor, that I think is making us successful, is: our system – it allows for an exit strategy. And when we're – I think in any – you know, they say "Go into a franchise as you would a marriage," because you're married to it. There’s a strategy to a marriage, but ours has an exit strategy, and that is: our buildings are built from modular shipping containers. These things can be brought in on a trailer, assembled; the city considers them a permanent building, so as far as zoning and codes are required, it fits all
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the stipulations there, but if, in five years, the demographics of the neighborhood change, or – one example: there was a Wal-‐Mart down the street; the Wal-‐Mart closed and moved two miles away. Changed the traffic patterns completely, and the business was no longer viable. Ours, you could pick the entire thing up; move it to another location or sell it to another franchisee or put it in a storage unit until life changed. So, there's just a little bit of an exit strategy and when you consider the amount of work and money invested in a business one like this at the end of the day, if you needed it, there's a exit strategy available. That is what differentiates us, I think, with our franchisors – or franchisees. CNI: Kirk, I don't even think anyone could ever question that. I mean, actually, I understood your concept and I was impressed by it, but that dimension you just mentioned is something that wasn't fully apparent to me. I'm glad you described that, because I think it's important for franchisors to understand that you don't need to follow a fixed model, and certainly you haven't. So, in your case, rather than having franchisees just crammed into a strip shopping mall with high rents or less flexibility, you created a different model, and – boy, I think that's a great example for anyone who's listening: just focus on efficiency and what you call an exit strategy and really the unique elements of your business. That's really great, Kirk. I'm – that was, actually, quite surprising. So – it was very interesting. KL: Thank you. CNI: Kirk, what's your website address, if someone's listening; they want to check out your website? KL: It's www.aprisacuisine.com. That's spelled A-‐P-‐R-‐I-‐S-‐A, C-‐U-‐I-‐S-‐I-‐N-‐E, dot com.
ABOUT
Charles N. Internicola is a franchise lawyer who represents start-up and established franchisors throughout the United States, in all fifty states. Mr. Internicola is the author of “The Revised
Franchise Formula: A Guide to Franchising Your Business in the New Economy”. Mr. Internicola has developed unique franchise compliance, franchise litigation and outside counsel services that are designed to facilitate and support franchise system development and growth. If you are establishing a franchise system or looking for a lawyer who knows franchising and how to timely deliver franchise compliance and franchise litigation services, contact Charles Internicola, to discuss the franchise services that he delivers to his clients every day.
Tel: 800. 976. 4904 www.FranchiseLawSolutions.com
1. LISTEN TO AUDIO PODCAST between Franchise Lawyer Charles Internicola and Franchisor Kirk Lance by visiting: www.BusinessandFranchiseLawInterviews.com; 2. ORDER A COMPLIMENTARY COPY OF THE CD of the interview with Kirk by visiting our website or emailing a request to [email protected]; 3. ORDER A COMPLIMENTARY COPY of “The Franchise Formula: A Guide to Franchising Your Business” by visiting our website www.FranchiseLawSolutions.com
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Or you can just Google the word "Aprisa," A-‐P-‐R-‐I-‐S-‐A, and it'll bring the results right at the top of the page. CNI: Kirk, I really appreciate you taking the time with us today and helping out. KL: My pleasure. CNI: Thank you very much, Kirk. KL: You betcha.
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The Franchise Formula: A Guide to Franchising Your Business Written by national franchise lawyer, Charles N. Internicola, Esq., The Revised Franchise Formula: A Guide to Franchising Your Business in the New Economy is all about:
- The fundamentals of franchising; - Is franchising right for you?; and - How to franchise your business. In the book, Charles also discusses the "franchisor mindset", the "scalability of franchising", "why controlled growth is important" and
"how to avoid the franchising pitfalls". FOR A LIMITED TIME YOU CAN GET THE BOOK AT NO COST! If you are a successful business owner and you have questions about "franchising your business", you may receive a complimentary copy of the book. To automatically receive your complimentary copy, visit: www.FranchiseLawSolutions.com
To learn more about franchising or our franchise interview series visit
www.FranchiseLawSolutions.com
or Call us at
800. 976. 4904 If you are a franchisor and you would like to share your experiences, please let us know – we would be
glad to hear from you.
! THE INTERNICOLA LAW FIRM, PC
National Franchise Lawyers
www.FranchiseLawSolutions.com
ARE YOU A FRANCHISOR?
ARE YOU INTERESTED IN PROMOTING YOUR FRANCHISE BRAND BY SHARING YOUR EXPERIENCES?
IF SO, READ BELOW:
What is the Franchisor Interview Series All About? Charles N. Internicola, Esq. established the “FRANCHISOR INTERVIEW SERIES” to facilitate the exchange of information and “battle-tested” ideas between franchisors and franchise professionals and to share this information with the franchise community and those prospective franchisors interested in franchising their business. The purpose of the interview is not to sell or promote franchise sales, however, the interview may add a valuable perspective for prospective franchisees interested in learning more about you and the philosophy of your franchise system. These interviews also give each of us within the franchise community an opportunity to connect with other franchisors and professionals. In addition to being a franchise lawyer, Charles Internicola is also the Managing Member of a National maid cleaning franchise.
What are the (Complimentary) Promotional Benefits of this Interview? During your recorded interview with Mr. Internicola, Esq. you get to tell your story, the story about your brand, your franchise system and what makes your franchise unique. Your information and the experiences that you share will benefit other entrepreneurs who want to learn more about franchising. Because we value your information and the time that you share with us, you will receive the following complimentary benefits: The interview will be recorded and conducted on our teleconference system. Following the interview we will:
ü Have the audio interview transcribed (we will provide you with a copy); ü Have audio CD’s produced and we will provide you with at least 20 copies (if you would like
more, you could make copies or order from the company that produces the CD); ü We will blog at New York Franchise Law and Franchise Law Solutions about your interview; ü We will issue a press release about your interview; ü Anything else, that we could (reasonably) help out with and collaborate on.
TO GET STARTED SEE REVERSE SIDE
The Internicola Law Firm, PC 1000 South Avenue – Suite 104, Staten Island, New York 10314
Telephone: 800. 976. 4904 | Fax: 718. 407. 4835 | Email: [email protected] www.BusinessandFranchiseInterviews.com
GET STARTED WITH YOUR (COMPLIMENTARY) INTERVIEW: The Process is extremely simple. Just contact Mr. Internicola’s assistant, Victoria Gracia (info below), let her know your are interested and she will take it from there. Also, below is a pre-interview questionnaire that will help with the process.
Kindly forward this form to us by regular mail, fax, email, or web: 1000 South Avenue, Suite 104, Staten Island, NY 10314
Fax: 718. 407. 4835 Email: [email protected]
Phone: 800. 976. 4904. www.BusinessandFranchiseInterviews.com
Prior to our recorded interview, we will have some time to speak, get to know one another and get down / confirm some basics (to ensure we have a fluid interview with value to our readers and for you): YOUR NAME / BUSINESS NAME: ___________________________________________________ PHONE NUMBER: ________________________________________________________________ EMAIL ADDRESS: ________________________________________________________________ MAILING ADDRESS: ______________________________________________________________ YOUR TITLE: ____________________________________________________________________ A BRIEF DESCRIPTION ABOUT YOUR FRANCHISE COMPANY: _______________________ _________________________________________________________________________________ OTHER INFORMATION THAT YOU MAY WANT TO DISCUSS: _________________________ _________________________________________________________________________________
Once we receive this form, we will contact you and will set up your interview with Charles N. Internicola, Esq. at your earliest convenience. Thank you!
CORPORATE INFORMATION FOR:
2311 SE 8th Avenue, Portland, OR 97214
Phone: 503. 505. 9006 | www.AprisaCuisine.com
Note: Thanks to Kirk and the great staff at Aprisa Mexican Cuisine. Also, please note that as a franchise lawyer we cannot and do not recommend franchise investments or the investment in a particular franchise opportunity. This interview and the information that we are sharing is intended to provide insights for those business owners who want information about franchising their business.
Again, much thanks to Kirk and his great team!
1000 South Avenue, Suite 104, Staten Island, New York 10314 | 800. 976. 4904 | www.FranchiseLawSolutions.com