In this EYL video, Rashad Bilal and Troy Millings engage in an insightful conversation with Derrick Hayes, the owner of a popular restaurant franchise. The focus of the discussion centers around the process of franchising his business and the reasons behind its immense popularity.
Derrick begins by sharing his decision to hold off on franchising a few years back because his gut feeling wasn't fully aligned with the idea. He emphasizes the importance of trusting his instincts over his heart and mind, as his gut never lies to him. Instead of rushing into expansion, he waited for the right time to ensure sustainable growth and avoid jeopardizing everything he had built.
He also mentions how he deliberately keeps his franchise's valuation and evaluation under wraps. While he could potentially attract more opportunities and attention by revealing these figures, Derrick wants others to focus on the work he is doing instead. He aims to prove himself through actions rather than numbers and prefers to prioritize long-term success over immediate gains.
When asked about the franchise process, Derrick explains that it took him about a year and a half to put together the franchise disclosure document (FDD), which serves as the blueprint for potential franchisees. He highlights the significance of item 19 in the FDD, which includes financial details that potential franchisees review before making a decision. Derrick expresses the importance of having strong financials and ensuring the bottom line and top line are in great shape.
The conversation delves into the criteria for individuals interested in franchising Derrick's restaurant. The primary requirement is having the necessary capital. Once the financials are sorted, applicants fill out the paperwork and the process continues with Derrick's broker. Prospective franchisees visit the facilities, and ultimately, Derrick makes the final decision after personally meeting and gauging the energy of the applicants. Derrick considers it a blessing to have his wife, Pinky, involved in this decision-making process, as they can support and guide each other.
The hosts also touch upon the idea of branching out into different locations and using the growth of Pinky's brand as a metric. Derrick reveals that they often use each other as guinea pigs to test markets and learn from each other's experiences. They analyze sales numbers and demographics to make informed decisions on opening new locations. Derrick boasts about the strong customer base they have established over time, which has helped them navigate challenging times and outperform competitors and industry standards.
A key factor contributing to Derrick's continued success is his commitment to philanthropy and community involvement, especially during the pandemic. When COVID hit, he stepped up by feeding customers and hospitals, showcasing his dedication to giving back. Derrick believes that this level of commitment has earned him respect and loyalty from the community, who see him as a business owner in it for the long haul. Despite the difficult times faced by other restaurants, Derrick has been able to open new locations due to the trust and support he has gained through his philanthropic efforts.
As the discussion comes to a close, Derrick reflects on his journey and expresses gratitude for being in a different space compared to struggling restaurant owners. While acknowledging the challenges faced by others, he shares his perspective on how his community involvement has contributed to his success and the flourishing of his franchise.
Overall, this EYL video provides valuable insights into the franchise process and the factors that have propelled Derrick Hayes' restaurant to popularity. The conversation underscores the importance of trusting one's instincts, prioritizing sustainable growth, and making a positive impact on the community. #EYL #FranchiseProcess #RestaurantFranchise #BusinessGrowth #CommunityInvolvement #Philanthropy
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