Greg Mohr Explains Why Franchises Are Seriously Worth Considering

November 1, 2024

Meet Gregory Mohr, a visionary entrepreneur, Wall Street Journal Best Selling author, and the driving force behind Franchise Maven.

Gregory’s journey from a seasoned micro-electric circuit engineer to the CEO and founder of a thriving franchise empire is nothing short of inspiring. In his two compelling books, Real Freedom: Why Franchises Are Worth Considering and How They Can Be Used For Building Wealth and Expert Resilience: How Entrepreneurs Are Leading the Future in Mind, Mastery, and Meaning. Gregory shares the central theme of his life’s work: the transformative power of franchising.

Drawing on his vast experience as a restaurant manager, engineer, and franchise owner, Gregory offers a roadmap to financial freedom through the strategic investment in franchises.

The Fox Magazine had the pleasure of interviewing Greg and getting vast insight into the world of franchising.

Where are you from originally?

Woodland CA.

What’s the first step in building wealth, where should people really start?

The first step in building wealth is establishing a solid financial foundation. This involves:

Creating a Budget and Tracking Expenses: Understanding where your money is going is crucial. A budget helps you see how much you’re earning, spending, and saving, allowing you to make informed decisions.
Building an Emergency Fund: Before you start investing or saving for other goals, it’s essential to have a safety net. Aim for 3-6 months’ worth of living expenses in a liquid, easily accessible account.
Paying Off High-Interest Debt: Debt, especially high-interest debt like credit card balances, can be a major obstacle to wealth-building. Focus on paying off these debts as quickly as possible to free up resources for saving and investing.
Setting Clear Financial Goals: Determine what wealth means to you. Whether it’s buying a home, retiring early, or financial independence, clear goals will guide your decisions and keep you motivated.
Start Saving and Investing: Once you’ve handled the basics, begin setting aside money for long-term goals. Take advantage of tax-advantaged accounts like 401(k)s or IRAs, and consider broad-based investments such as index funds.

Starting with these foundational steps helps ensure that you’re on solid ground as you begin to build wealth over time. Why is it important to understand the business and industry you are looking into? Understanding the business and industry you’re looking into is crucial for several reasons:

1. Informed Decision-Making:

Assessing Opportunities and Risks: Knowing the industry helps you identify growth opportunities and potential risks. Understanding market trends, competitive dynamics, and regulatory environments allows you to make better decisions about where to invest or how to position your business.

Evaluating Business Models: Each industry has different business models that work well. Understanding how companies make money in a specific industry helps you evaluate whether a business is sustainable and profitable in the long term.

2. Competitive Advantage:

Identifying Market Gaps: By deeply understanding the industry, you can spot unmet needs or underserved markets. This knowledge can help you create products or services that differentiate you from competitors.

Staying Ahead of Trends: Industry knowledge allows you to anticipate changes and adapt before your competitors do, giving you a strategic edge.

3. Risk Mitigation:

Avoiding Pitfalls: Every industry has its own set of challenges and pitfalls. Understanding these can help you avoid common mistakes, whether it’s overestimating demand, underestimating costs, or failing to comply with industry-specific regulations.

Understanding Cyclicality: Some industries are highly cyclical, meaning they have boom and bust periods. Knowing the cycle can help you time your investments or business expansions to maximize returns and minimize risks.

4. Effective Communication and Networking:

Building Credibility: Knowledge of the industry enables you to speak intelligently with peers, partners, and investors. This credibility can help you build stronger relationships and secure necessary resources.

Negotiating Better Deals: Understanding industry norms and benchmarks allows you to negotiate better terms with suppliers, customers, and partners.

5. Long-Term Success:

Strategic Planning: Deep industry knowledge is essential for long-term planning. It helps you set realistic goals, allocate resources efficiently, and navigate the complexities of your business environment.

Adapting to Change: Industries evolve, and businesses that understand these shifts can adapt more quickly, ensuring sustained success.
Understanding the business and industry is not just about gathering information—it’s about gaining insights that drive smart strategies, reduce risks, and position you for success in a competitive landscape.

How did you get into franchising?

In high school, first job was fast food at Taco Bell. I moved up into management and found out I was working for a master franchisor, Kathy. Kathy owned 50 Taco Bell’s throughout the Sacramento CA area. I helped her build up her restaurants.

What are the 7 mistakes to avoid when selecting a franchise?

Not understanding the business and industry
Not enough capital
Letting what is in “fashion” cloud your judgment
Thinking “I’ll be rich in a year or two”
Dismissing funding
Not speaking to existing franchisees
Not making use of free experts

What are the best ways of funding your franchise?

Two ways to fund your franchise, your money or other people’s money
Your money – 401K or IRA rollover into a self-directed 401K
Others people’s money – Most popular is an SBA loan folled by a HELOC

What was one thing you did that exceeded your expectations when you began franchising?

Sold over 300 locations for Supercuts franchise.

What does success mean to you? What are your rules for success?

Doing what I want, when I want.

Rules for success?

Set Clear Goals: Define what success means to you, and set specific, measurable, and achievable goals to reach it.
Stay Consistent: Consistency in effort, habits, and actions is key to long-term success. Small, regular steps often lead to big results.
Learn Continuously: Always seek to improve and expand your knowledge. Success often comes from being adaptable and open to learning new things.
Embrace Challenges: Challenges are opportunities for growth. Face them head-on and learn from any failures along the way.
Network and Collaborate: Build strong relationships with others. Success is often a team effort, and connections can open doors to new opportunities.
Manage Time Wisely: Prioritize tasks that align with your goals. Effective time management ensures you’re working on what truly matters.
Stay Positive: A positive mindset can drive motivation and resilience. Believe in your ability to succeed, even when things get tough.

The Fox Magazine is all about inspiration, what/who inspires you the most?

The success of people that I place into franchises. I enjoy hearing stories of them becoming rookies of the year as they first get into franchising. After that I hear of them picking up multiple territories.

What’s something people would be surprised to learn about you?

I live out in the countryside in the Ozarks and we work on making our land and ourselves, self-sustaining. We grow and raise most of our own food.

Your favorite inspirations and why?

Zig Zigler – “You can have everything in life you want, if you will just help other people get what they want…” I help other people realize they can own their own business and live life on their terms.

What is your favorite or original wealth-related motto, quote or words to live by?