19: Why a Strategic Partnership Could Work for Your Franchise

<p>Are you wondering if a strategic partnership could benefit your business endeavors? Are there just some skills that you lack that a partner could take on? If you don’t possess all the necessary skills—or even finances required—to be a business owner, consider partnering with someone who does. My guest today, Stephen Kopshaw, gives us insight into 3 different areas of franchising—and doing it with partners.</p> <p>12 years ago Stephen was a physical trainer working at a Fitness Together location. He had ideas on how to implement business practices differently that he felt would benefit the franchise. He shared his ideas and goals with his client and friend, Lisa Paladino Petersen, hoping to open his own location someday. One day she said, “Why don’t we do it together?” and their partnership was formed. Less then a year later they were operating their location. Now, Stephen and Lisa—along with 4 other partners—own multiple franchise locations, work as consultants, and are operate on the flip side as franchisors. </p> <h2>Outline of This Episode</h2> <ul> <li>[0:35] I introduce my guest, Stephen Kopshaw, CEO of FIT 36.</li> <li>[2:10] How Stephen got his start in franchising</li> <li>[6:15] How it all began with friendships</li> <li>[11:20] Play to your strengths—let someone else handle your weaknesses</li> <li>[14:55] Taking over failing stores = “Turnaround Opportunities”</li> <li>[17:10] What do you look for in an opportunity</li> <li>[20:55] What do you look for in a good location</li> <li>[22:30] The evolution of their partnership</li> <li>[25:40] Next steps: Buying out a franchise</li> <li>[29:00] Challenges to overcome </li> <li>[32:35] Commitment to transparency and change</li> <li>[34:55] Changes in store for FIT 36</li> <li>[40:00] Things commonly seen in an underperforming franchise</li> </ul> <h2>What can a strategic partnership do for you?</h2> <p>The strictest definition of a strategic partnership is a “relationship between two commercial enterprises usually formalized by one or more business contra