The upsides were incredibly attractive. The fastest-growing franchise in its category with a disruptive business model.  A large untapped market with only one active location. A reasonable buy-in with the opportunity for multiple locations. A business plan based on  “similar locations” that achieved break-even in a little over 6 months. Due diligence included several conversations with multi-unit owners from across the country that had experienced growth and success. The opportunity to finally “be my own boss” and manage a profitable business that would be my career “swan song” and secure the remaining lego piece of our retirement superstructure (all funding obtained separately …….). I was definitely interested.

The grill cover is starting to fade on the exposed side ……………

The final decision to move forward was deliberate and reasoned – but not without its share of wishful thinking. Beyond the business plan, the scouring of the FDD (Franchise Disclosure Document), discussions with financial planners and accountants …… there was my desire for a new story. One important element was the fact that as a Franchisee I couldn’t be downsized or restructured – I would run the business and do all the hiring, training, firing, etc. Another attractive element of this new story was that as I opened new locations I could remove myself from having to work IN the business to instead being able to work ON the business as we expanded. I saw myself forming new co-branded partnerships with synergistic businesses, leading the local co-op marketing effort, taking our social media presence to the next level, etc. Instead of the two locations I had purchased, maybe there would be three, four ……………the sky was the limit.

After freezing, thawing, and freezing again the grill cover was adhered to the grill and started to rip as I removed it to grill out one winter night ……………….

“Everything’s changed since COVID – the old rules just don’t apply anymore. I wish I could tell you I know what’s going on but I can’t …………..” My contacts at the Franchise were straight with me. I knew this because they opened their fourth location in their region (just 90 miles from mine) at the same time I opened my first. Their numbers were almost identical to mine in every single metric we tracked. Six months after opening I was nowhere near the break-even point that my business plan promised. We acknowledged we were dealing with a “new reality” and we both needed to grind: more local “guerilla” marketing, more social media, more referral incentives, more employee training, more, more, more…… And that’s what we did. While I knew that hope was not a strategy, I still was hoping that grinding it out would eventually result in an upward trajectory.

“Hey  Dad, the grill cover is looking pretty rough …………” my daughter pointed out the obvious – a ripped-up cover on an aging grill on the patio was starting to attract notice. 

The months dragged on and unfortunately so did the deficit – our monthly cost of labor, rent, and insurance subtracted from customer revenue – eating away at the savings we had so diligently built for our retirement over the past 40 years. Every day I logged in and monitored visits, sales, conversion rate, cancellations, etc. in real-time. Every day my wife would ask “How did we do today?”. Every day I projected how long our savings could sustain this level of business. Every day I thought about the multi-year commitments for the franchise agreement and the lease in the popular mall. I became more withdrawn socially. I didn’t have the energy to engage with people as I always had. I started to think that everyone knew what I knew, that I wasn’t succeeding, that I was doing what a majority of small businesses do ………………..fail. I was in a dark place.

It’s hard to justify spending money when you’re losing a big chunk every month. I’d always been a saver. I’d always invested for the future. And now I was watching what I’d built up start to melt away month after month. If I just turn that grill cover around you can’t see the ripped area as much ……

Fortunately, I maintained the “brain trust” of my financial advisor, my best friend and financial mentor, and my newly acquired CPA for the business (actually a friend from grade school who runs a successful Accounting Firm). I kept them apprised of my results and of my fears and concerns. When I hit the one-year anniversary of opening the first location with break-even still nowhere in sight I pulled them together for a consult. I was ready to pull out and see what I could salvage. They listened and were empathetic. They pointed out that other locations were experiencing similar results and that perhaps I needed to “ride it out”. In the end, we concluded that I would give it 6 more months – all in – and then if things hadn’t changed I would look at alternatives. The darkness continued, the anxiety mounted, my thoughts tumbled deeper down the rabbit hole…..

Yes, it’s completely ripped in half and only covers 3/4 of the grill now. But is a grill cover really that important if the grill is on its last legs too? Why spend the money if we don’t have to…….?

The good news was that I had built up a very solid team of employees who knew the business and had been solid contributors for almost a year. Our reputation was solid, our reviews were excellent, and the location continued to bring in new customers who were shopping in the mall and saw our sign. The buyer had multiple locations and wanted another. Acquiring us meant no expensive build-out. The purchase meant that I could recoup a chunk of my investment and be relieved of the multi-year lease and franchise agreement. I could move on free of the financial and emotional burdens of a struggling business. In the end, I truly learned a lot about myself, the franchise business, and the importance of professional and personal relationships to help you through the darkest of times. I have a new appreciation for life, family, friends and small business owners. I am out of the rabbit hole and am into the light ………

Today I bought a new grill cover …………..