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The Secret To Becoming The 800 lb Gorilla in Franchising - Horse Power Brands - YouTube
Channel: The Daly Coach
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our personality and our culture as an
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organization is that we're fast-paced
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we're aggressive and uh we have a
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certain purpose it allows us to attract
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a specific type of franchisee that has
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the desire and also has the intellectual
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capacity to become the 800 pound gorilla
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in the marketplace
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it creates fantastic results
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[Music]
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[Music]
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welcome back to kimberly tv today i have
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two special guests for you it is a daily
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double right here on kim daily tv
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we've got zach butler and josh skolnik
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they are the founders of horsepower
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brands and they are here to tell you all
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an amazing story
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of north american domination
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for every brand that they're bringing to
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market i say that playfully but in all
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in all uh sincerity the reason that zach
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and josh are on my show today are
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because they are two of the most
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powerful brand developers in franchising
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that i personally know so uh josh and
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zach welcome to kim daily tv yeah it's
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great to be here thanks for having us
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very excited to have this conversation
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with you today so zach why don't you
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tell the listeners of kim daily tv a
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little bit about who horsepower brands
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is are
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and what your mission or goal is behind
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founding this company uh and moving
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forward yeah horsepower brands is an
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umbrella company of home service brands
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uh so right now we have uh four
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different service brands we have uh
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we're scheduled to launch three more
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additional brands here in the near
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future and we do things a little bit
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different we like to acquire companies
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in their infancy or before they're a
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franchise so that we can put the right
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amount of capital behind them from the
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beginning which allows us to provide a
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different type of support which then
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allows us to attract a different type of
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franchisee
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and that leads to a faster growth and
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success
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we also help with vertical integration
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so we own the marketing company that we
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work with so that we can scale on demand
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and other verticals as well
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so he said so many things that we're
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going to come back to josh um will you
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add something about horsepower brands to
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this conversation
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yeah i think our focus at horsepower
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brands is number one franchising success
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but more importantly building the
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infrastructure to support what we
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believe will be legacy brands long term
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and making sure that we're not just
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thinking about what do we need today but
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more importantly what what's coming down
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the pike three to five years down the
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road and infrastructure's a huge part of
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that in the way that we're vertically
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integrating beyond just being a
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franchisor and acquiring many of the
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vendors we do business with we're
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launching vendor verticals to support
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our franchisees with a higher level of
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customer service and a better control
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over cost
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they gotta own every part of it guys
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so okay so this sort of like maybe begs
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the question um why is it so important
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for you to be able to own and control
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systems and you know marketing and
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because did something happen in your
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past where you saw it working a
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different way that wasn't that
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successful
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so kim as you know my background as a
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franchise where i've owned multiple
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franchise systems over the years i
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always speak to how a vendor is truly a
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big extension of a franchisor and it can
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also play a big role in making or
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breaking a franchisor and so what we
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monitor closely with our explosive
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growth in the way that we grow brands is
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the financial wherewithal and the
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intellectual capital of the vendors we
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do business with so we can identify
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early are we going to as an organization
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outgrow some of the vendors that we do
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business with or need within our systems
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and so when we identify those issues we
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jump in take control make an acquisition
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of a brand within that service space or
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we'll go ahead and acquire somebody we
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already do business with it's so
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phenomenal and are you able to do that
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because you're backed by private equity
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are privately back so all of the funds
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that we're using in this venture um are
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personal funds from both zach and myself
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um and a large majority of those funds
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have been generated through some prior
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transactions of two large-scale
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franchisor exits that i've had over the
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years amazing they're taking their
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success and franchising and rolling it
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into another franchise and and building
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this whole organization so zach why
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don't you tell us about the brands that
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horsepower currently is bringing to
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market yeah when we look at acquisitions
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kim we have a select uh criteria that we
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need to have for us to be able to make
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the investment and
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when we look at that we like brands in
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home services
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that are services needed by all that are
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in a very there's a where there's a
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large market demand yet
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uh the competition's very fragmented so
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when you look at that our first uh
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acquisition was in the roofing space
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which is mighty dog roofing we've had a
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tremendous amount of success with that
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concept we launched in
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december of uh
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2020 and as of today we have almost 200
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locations across the country so
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by this time next year will be the
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largest
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roofing company in north america
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our second brand was blingel which is
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outdoor lighting so landscape lighting
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holiday lighting and event lighting
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that's an exciting brand again that's a
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service that's needed by all that is
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extremely fragmented
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and at that one the holiday lighting
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aspect is a big part of that business
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that uh there's not any there are no
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national players i foam insulation is uh
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spray foam and blowing insulation and
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spray foam is the future of insulation
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and again there's no national
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competitors really with that market uh
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so that was a recent brand and then our
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last uh that's getting ready to launch
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kim is heroes lawn care it's an
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executive only model that offers three
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main services
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fertilization irrigation repair and then
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dog waste removal or pet waste removal
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and that allows us to be on the property
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every single week and offer the most
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profitable services of that space
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i use all three of those three different
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vendors
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i like it so okay so now when you
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acquired these young entrepreneurial
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companies did you know anything about
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roofing spray foam or
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decorative lighting
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no so our background our background kim
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is
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as entrepreneurs we know how to dissect
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an industry surround ourselves with
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professionals that are experts and
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really invest in the systems and
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processes to really grow what we believe
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to be a semi-absentee business
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opportunity
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a lot of our franchisees are
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entrepreneurs we're encouraging and
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we're providing a lot of uh
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entrepreneurial support uh zach talks a
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lot about eos or traction as many people
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will familiarize themselves with the
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name um but we invest heavily in
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training our franchisees to work on
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their business versus in their business
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i want to come back to that point
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because in the setup of this
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conversation in the beginning
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one of you said you know we're
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attracting a certain candidate and you
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are you know there's a lot of companies
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out there that will use that expression
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we want the chuck in the truck right we
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want the man in the van with the plan
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but that is not what you
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who you try to attract and by virtue of
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the level of investment that you require
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for an outdoor lighting company right
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because that when i see that investment
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i know i know as a consultant oh this is
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an executive model so let's talk a
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little bit about that to the candidate
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out there and why that's intentional on
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your part yeah
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so our personality and our culture as an
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organization is that we're fast-paced
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we're aggressive we're loud
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and we have a certain purpose
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and by increasing the
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by increasing
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the
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investment level of a brand it allows us
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to attract a specific type of
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franchisee that has the desire and also
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has the intellectual capacity to become
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the 800 pound gorilla in their
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marketplace
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and and that is that is our that is our
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personality so if someone doesn't have
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that personality for our culture as a
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franchisee
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they tend to be a little bit frustrated
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because we're pushing them to grow we
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want them to have a big business we want
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them to be multi-brand operators
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but by having certain aspects of the
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investment at a higher level it allows
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them to scale the business faster and
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capture uh more of the market at a
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faster pace so
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we've we've already found that from
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initially from a being able to cash with
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a business increase average unit volumes
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for us it it's uh it creates fantastic
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results
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fast-paced aggressive and loud those of
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you out there who can check those boxes
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i love it i don't 100 agree they're
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attracting a higher level executive
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candidate somebody with a million two
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million three million dollar net worth
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for a very simple business in a trade
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industry that's highly fragmented and
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they're bringing in people who don't
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have experience you don't have to be the
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experience you need to be the ceo who
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can work on your business as zach said
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rather than in your business who can
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follow their lead they're providing the
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tools as josh said earlier they have
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vendors they acquire their vendors so
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they can control so they can control the
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growth of their marketing as they need
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that part to grow so let's talk a little
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bit more about that and the importance
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of owning and controlling that i think
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you said before because you you could
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outpace the growth um what does that
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mean and so in what besides like
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marketing what other vendors are you
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actually um taking in or considering
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taking underneath your own umbrella
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so in our business franchising number
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one is a very fast pace to grow a brand
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on a national level and what i think a
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lot of uh businesses or vendors that we
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do business with don't recognize is when
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they hitch their wagon to somebody like
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horsepower brands we're going to bring
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explosive growth to the industry so
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that's going to put some stress on the
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supply chain for us you know obviously
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digital marketing is a big piece so we
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acquired a digital marketer we've worked
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with the last three years i'm largely in
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part to control results and more
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importantly have accountability to make
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sure that we're keeping the cost per
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lead down or the acquisition cost of
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customers for our franchisees to a
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minimum but then i mentioned earlier
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supply chain you know we all know what's
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going on in the world today and the
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issues with supply chain so being able
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to prepare for our own growth and be
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able to project that you know in our
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outdoor lighting business we set up a
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distribution arm grassroots started uh
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acquired a 50 000 square foot warehouse
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and invested over 10 million dollars in
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products to make sure that when our
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franchisees walk through the door they
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recognize we we've got their best
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interests at heart and when they grow
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and they scale we've got the
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availability to be able to meet their
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needs so it goes beyond that you know
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we've got our own internal call center
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now
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horsepower call solutions or powerhouse
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call solutions to be able to meet the
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demands and and control the training of
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those individuals so we're answering
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those phones for the franchisees to make
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sure that there's a great customer and
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consumer interaction with the
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organization
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do you hear that level of confidence i
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love it 10 million dollars in lights
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that's a lot of bling
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in that warehouse and that's the name of
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that brand blingel
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sorry i'm funny i know
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you're good
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so the people that i place into
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horsepower brands one was a is a
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southwest airlines pilot who now is a
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mighty dog roofing franchise owner right
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like what does a pilot know about
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roofing that's the whole point you don't
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want to know about it because you don't
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you're not working in it you're working
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on it and you can learn as you grow your
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business and most recently
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i think as of this week actually we have
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our newest franchisee two engineers in
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the oil and gas industry from houston
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who are now some of your newest blingle
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franchise owners and they never saw that
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coming we were just celebrating this
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morning and and we were laughing you
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know they came to me thinking they
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wanted help and fitness and i said great
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but let's just not pigeonhole you into
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what you think you know let's just let
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my process work and let's just see what
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else is out there and in speaking with
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them this morning they just said it just
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made more sense when you start putting
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the numbers together and you look at the
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growth potential of a business that
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doesn't have the confined
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you know space of four walls
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and when you look at the partnership
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that's being offered to them through
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horsepower through zach and josh and the
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technology and infrastructure that you
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have
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that you have to offer them as new
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franchise owners they were like it
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didn't make any like literally that
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process went from like a hello call i
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think to two weeks later her telling me
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this is what we want to do when can we
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sign a franchise agreement like that's
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how fast it went and that's a testament
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to her
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their open-mindedness right to even be
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willing to entertain a conversation with
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an outdoor lighting company
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and to the process that i offer the
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daily coach offers through fran choice
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so
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uh zach and josh is there anything else
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you want to tell the listeners of kim
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daily tv about your vision your future
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anything you want them to know in
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parting about your brands
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i've been development and i've been in
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franchise development for a long time
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i've been a multi-brand franchisee i've
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uh lost everything and filed bankruptcy
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in france as a business owner hit rock
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bottom and had to rebuild
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what we're doing is different the
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we're launching emerging brands that
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have support as if we have hundreds of
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franchisees
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and when we look at the level of
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experience that josh and i can bring to
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the table the level of capital
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uh our m a team can invest a lot of time
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and energy into finding the newest and
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best technology and then with us owning
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the digital marketing agency the results
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have to be there
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when we launch an emerging brand if the
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first franchisees are not successful the
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brand does not grow
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and that's where we're putting such such
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amount of focus
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on on the growth initially for those
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first franchisees because they've really
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paved the way for the other franchisees
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in the future good decisions come from
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experience and experience comes from bad
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decisions but mark 20.
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awesome what a way to end this great
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conversation
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follow people who have a track record or
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track record of understanding what
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doesn't work
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as much as what does work i mean right
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that is the biggest fear that every
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candidate coming to the idea of owning a
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business has is am i going to fail
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find people in franchising who inspire
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you people who have a track record who
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you can lean into and learn from and
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grow with
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if this story has inspired you to want
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to take action and potentially begin
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your journey exploring one of the
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horsepower brands please follow the
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email on the screen and josh and zach
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thank you for being my guest today on
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kim daily tv
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thanks for having us
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until next time my name is kim bailey
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and i want to be your daily coach
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[Music]
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you
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