In this episode, Oleksij Rak sits down with Rick Morgin, franchise consultant at The Franchise Consulting Company, for an unusually honest look at the numbers behind franchise consulting — and at what really stops people from becoming business owners.

About Rick

Rick Morgin came out of corporate finance and sales leadership, was laid off in 2015, and left the W-2 world for franchise consulting after a chance meeting at a networking group. He has been with The Franchise Consulting Company since its inception in 2016 — this November marks his tenth anniversary. Rick works both sides of the industry: matching candidates with the right franchise and helping business owners become franchisors. He even helped his own son find and buy a franchise.

What we talked about

The leap out of the W-2 world. What it took to trade a paycheck every two weeks for a 100% commission life — and why Rick wishes he'd thought about entrepreneurship earlier.

The honest funnel. Rick shares the real math of franchise consulting, from leads to closed deals — numbers most consultants never say out loud.

Why deals die at the finish line. It's rarely the money. Rick explains what fear does to candidates in the final stretch, and which candidates are most at risk.

What makes a business franchisable. Profitability, a protected brand, a marketing plan, capital for the first five franchisees — and one ingredient that killed a perfect ice-cream-shop candidate.

The napkin math of a franchise exit. How a royalty stream turns into a multiple that selling three stores never will.

Where franchisor support ends. What franchisors really do for franchisees' lead generation — and where your own effort has to take over.

Sharpest moments

The number that surprised even the host:

"Two hundred leads to get fifty appointments... 12 people in the sales process to get two deals. So it's one out of six, one out of seven."

What Rick asks every hesitating candidate:

"You've been successful in your career your entire life. Why are you doubting yourself now?"

His first advice to new franchisors:

"Your franchise fees is not the prize. You want to take that and reinvest that... back into the business to support your... franchisees."

The exit logic that makes owners dream bigger:

"You've got a successful franchise, and now you attract the attention from a buyer, private equity, and they're gonna offer you ten times."

Key takeaways

• Franchise consulting is a numbers game: roughly 200 leads become 2 deals — and it's fear, not finances, that eliminates most candidates.
• The riskiest candidates run a job search in parallel; fear usually wins and they take a lesser job at lower pay.
• A franchisable business needs profitability, a trademarked brand, a marketing plan, funding for the first year — and a genuinely motivated owner.
• The franchise fee is fuel, not profit: reinvest it into franchisee support until the royalty stream develops.
• A recurring royalty stream can attract a ~10x private-equity offer — value a three-store unit will never command.
• With ~4,000 franchise brands in the US, an unbiased guide matters more than any single brand choice.