Franchising Is Broken Without Recurring Revenue (And Most Brands Overlook It) With Stu McLaren

14 snips

Apr 8, 2025

Stu McLaren, an expert on memberships and recurring revenue and author of 'Predictable Profits', discusses revolutionizing franchising by focusing on recurring revenue. He shares insights on how membership models can create predictable profits and foster community among franchisees. Listeners learn the significance of transformation over mere transactions, alongside strategies for customer engagement and retention. With a focus on building strong support systems, Stu reveals actionable tips to help entrepreneurs scale their business and avoid common pitfalls.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

Stu McLaren's Journey

Stu McLaren's entrepreneurial journey began with consulting and transitioned into memberships.
This shift was driven by a desire for predictable profits and a better work-life balance.

INSIGHT

Membership Models

There are four main membership types: product, service, knowledge, and community-based.
Businesses can adapt one of these models to offer recurring revenue streams.

ANECDOTE

Franchisee Innovation

A franchisee suggested a one-to-many service model to his franchisor and was asked to pilot it.
This shows franchisees can innovate and franchisors can be open to new ideas.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

What if your franchise could generate predictable profits every month without the constant hustle? In this episode, Stu McLaren, an expert on memberships and recurring revenue, reveals the missing link that most franchises overlook.

Stu and Erik dive deep into the world of memberships and how they can transform any franchise system. Whether you're a franchisor or a franchisee, understanding the importance of predictable profits and creating a community can unlock massive growth potential.

Stu shares key insights on building effective membership models that generate consistent income and discusses the critical mindset shift needed for business owners to go beyond just one-off transactions. He emphasizes the significance of focusing on transformation and how franchises can leverage this to scale. Stu also reveals strategies for building communities that engage and retain customers, all while avoiding common pitfalls.

Want to learn how to add recurring revenue to your business? Tune in for actionable tips to skyrocket your growth and stabilize your cash flow.

“It's not about the stuff; it's the transformation. That's what people are buying. If you can give people the transformation in a shorter amount of time and make it easier, it makes an absolute no-brainer. So it's not about the volume, it's about the transformation." ~ Stu McLaren

In This Episode:

- Stu McLaren’s background in entrepreneurship

- How membership models are relevant to franchisees

- The different types of memberships

- Developing a subscription model within a franchise system

- Case studies of successful membership models

- Mistakes to avoid when creating a membership model

- Why giving too much might hurt your offer and what to do instead

- Lessons from Stu McLaren’s book, Predictable Profits

- Why franchisors should consider membership models

Resources:

🌐 Consult with Erik - https://form.jotform.com/222685728939070