Franchise Secrets Podcast

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

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.

45:19

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Episode guests

Stu McLaren

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Episode notes

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Quick takeaways

Franchises can achieve predictable profits by implementing effective membership models that focus on customer transformation rather than overwhelming details.

Building a supportive community within franchises enhances retention and provides a structured success path for franchisees to improve performance and collaboration.

Deep dives

Emphasizing Transformation Over Offering

When selling a membership or any product, it's crucial to emphasize the transformation customers will experience rather than overwhelming them with excessive details about the offerings. Too much information can repel potential customers, making them feel that the commitment required is burdensome. Instead of focusing on how many videos or meetings are included, it’s important to make the process feel effortless and straightforward, guiding them from their current situation to their desired outcome. By highlighting the ease of achieving their goals through the membership, sellers can create a more attractive and compelling offer.

Intro

2min

Building Business Freedom Through Membership Models

7min

Unlocking Recurring Revenue in Franchising

22min

Foundations of Franchise Success

8min

Building Community and Success Paths for Franchise Growth

6min

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