0:00 [Music] Welcome back everybody to another episode of the Careful Boys where we are here with Ron Skullsdale. What's up Ron? Hello Ron. Ron run. Hey from entrepreneur to entrepreneur. Nice. We made it on the entrepreneur magazine. Big deal. Check this out. Okay. on the top 150 new emerging franchises. June B is at 138. Yo, that's sick, you guys. Out of thousands. Congrats. Yep. That'sing awesome. That's crazy. This time there's five stores open, but we got five more to open this year. Wow. We're going to be close to Yeah. a little over 10, I
0:52 think. Let's go. Yeah. And then we're number 138. And if you want to own your own franchise, there's a page in the ad right here on the magazine. Yeah. Damn, that's tough. How fresh is this? How how this just came out. Just came out. How do you feel? Holy ████ Knew it was in We knew it was in the works, but we just uh we just saw that it was in the magazine literally like this week or last week. Dude, that's amazing. June, baby, how it feel to read that in the Do you guys know? Did they hit you up beforehand and let you know? Um, our partners just hit us up in the group chat and they're like, "Guys, we're on the ranking." And I'm like, "Oh ████ we're on the radar right now." Yo, that's amazing. Yeah. So, we're being recognized and we're big enough now to where um we're in the big leagues, dude.
1:44 We're we're we're competing with the rest of them, you know? Dude, there's some crazy names in there. Buffalo Wild Wings, Round Table Pizza. Round Table Pizza. Yeah. All I mean, they're all on there. Togo. Toggos is still around. Hey, who did you guys beat though? Who did we beat? Yeah, let's shut them. Let's dunk them. It's a big list. You want to name them all? Just some ones in front of us. 900. But they're all new cuz we're on the new franchise list. We're like on the new emerging. Ice Smash. Definitely beat Ice Smash. Hell yeah. That's right. Daddy's Chicken Shack. That sounds hot. I've heard of Daddy's. Everything sounds hot to you. Nest Protection Plan. Ooh. Serotonia anti-aging centers. Oh, we beat the anti-aging centers. Good luck. Let's talk about who beat you guys real quick. No, no, no, no. We got to find the names that we got to chase.
2:34 Garbage kings. One more time. Garbage. [Applause] Garage. Garbage is big business, dude. Garbage. I was like, damn. Oh, garage. Those garbage kings. All right, garage. Okay, I see what's going on. Dang, those garbage kings are so good. Dang. This is crazy. I know. It's kind of crazy, huh? See where where do you guys feel like uh you guys are at in your journey of it? It's still early. Very early. Yeah. I think there is a big leap though, like from 0 to 20, but then from 20 to 100 is like the next step. Damn. Yeah. And it goes to like triple digits like Yeah. But it's it's it's crazier
3:24 cuz the size of team you need at the 100 franchise level too. It's like crazy. Are you guys trying to go for the 100 level? I don't know. We'll see because sky's is the limit right now. Matcha's super popular. The whole world's on matcha. You got the Vietnamese selling matcha now. Yeah, everyone's on matcha. Starbucks has matcha. It's crazy. Boba, too. The minute you have like the traditional Yeah. the traditional like uh American brands carry Asian stuff, you're like, "Oh s███." And right now, we're the leading franchise of matcha. We have the most stores. We're the, you know, fastest growing. That's amazing, man. On average, every single one of our stores does like upwards of 700Kish and growing. So, yeah. Damn. Guess how many Starbucks has. Just to give you guys
4:15 like how many stores to make us feel like ████ huh? Thanks, K. They have about 20,000 locations. Just to cuz you guys were thinking about 100 is like Yeah, they have 20 I think 20,000. Yeah, dude. They have 40 40k, dude. It's crazy. Oh, it's worldwide or nationwide? Yeah, just worldwide. Oh ████ dude. But yeah, now you're talking about like publicly traded company, bro. That's why I'm like that's why I'm thinking like for you guys, is 100 the goal right now or you just thinking about it? Uh right now I just want to make sure that we can grow not too fast because it's all about supporting cuz this is where franchises fail is that like they um grow hella fast and some of them their strategy is all about let's make 100 stores real quick but it's like it's a house of cards cuz a lot of the times those
5:06 people that grow like really quick they don't really sustain and they can't survive because they don't have the infrastructure to maintain that kind of level of growth. Like 100 stores within a year, that's crazy, you know, cuz then you need you need the team to support the 100, right? So that's a 100 phone calls if something goes wrong, you know, and then if you don't have the people with experience cuz usually what they'll do is they'll they'll have different teams in in the region of that corner. You get West Coast, you get East Coast, right? But then if it's like one small group having to deal with all of these things, n like I I I I worry more about making sure that everyone gets like the right product and quality like every single place in the world and just be exclusive and then open up more like I
5:59 guess like open up in a way where you can maintain that instead of just going a thousand stores and then like it just crashes and burns in one year. Yeah. Can you guys disclose how like uh whether it be numbers or percentages like franchising works in terms of somebody like how much goes back to the parent company like how involved the parent company is even if you like fully own the franchise. In most franchise situations, you pay like a upfront fee and like you know whatever the franchise fee is. It could be like anywhere from like 10 to 100K. Like it really depends on what that brand is, right? McDonald's like a million or something. Yeah. But then um certain Yeah. Like McDonald's and all these other they'll have certain qualifications where it's like you have to have a net worth of 5 mil, you have to have whatever. So it really depends
6:50 on the franchise rule. there's usually like a um a percentage like you know I don't know like average 3 to 5% um of no your your your sales okay uh and it's taken off the gross so meaning like let's say you make um easy number $10,000 a month right and then so you just give them $5,000 off the top and then the way they collect it it could be that month or every quarter or whatever yeah so there's two things usually going on the initial payment and then the percentage has percentage. Yeah. But some people they they do a licensing. So like a franchise is there's a lot more control from corporate. They'll tell you what you can sell. You know, they'll control the menu, the marketing, everything. Um and then it's a little bit higher of
7:42 a percentage, but they do so much of the work. And then they do there's a lot of support. If you're in a good franchise, they'll support the ████ out of you. meaning like um if things go wrong, they'll help you troubleshoot. You know, they're more invested into your business versus a licensing is you could get the logo, the brand, you can get the recipes for their products, you can sell it, but it's after that it's like peace. It's like maybe you'll pay like a percentage which is way smaller like you know may like like if it's a franchise you might pay like 5% and if it's a licensing it might be like two per month but then you have more freedom. Yeah. So there's depending what's out there like there's there's different kinds of arrangements like that cuz we have another brand called Shrimp Daddy and that's at the top mall and that's a licensing deal with the uh Planet Hollywood team and so
8:32 they give a percentage but they pretty much have a lot of freedom to add things to their menu, do a lot of stuff like that. Yeah. Even tweak our recipe a little bit. Yeah, which they've done. They've changed the recipe like a chicken daddy. I mean, it's all done with good integrity, though, cuz like it's like most people just want to make it better in their eyes. And I think like for us, uh, we used to have the shell long cuz in Hawaii, you eat the whole shrimp and Asians do that too. Shell. So, when we were at the Smoresburg, we would have the whole shell everything. But then, um, you know, more like mainstream customers, like they don't want that. They they rather have no shell and then fully battered. Yeah. Which is understandable. So, they adjusted that. But if you were a franchise, you had to stay to the rules. And we could have said, "No, you can't do that." Yeah. Yeah. That's interesting. And then it evolves over time. Yeah. No tails.
9:24 This is pretty cool, though, cuz it's like um you know, you know, when you make it to like white people publications, it feels like you did something crazy cuz it's like the names that are side by side are like the other companies you've heard of, you know, John, Lil Caesars, whatever. So it's cool to see something that was like started from scratch cuz the whole story actually started off with us trying to do another company's franchise. We existing company we did the franchise that didn't go well. So we had to start something from scratch and to create something from scratch and now for that franchise to surpass the first franchise thing we did is pretty cool. Dude, that's awesome. What up guys? Come join our Patreon cuz there's hundreds of videos dating back to 2019. Support the channel's growth and new ideas and tap into the closer community by joining our
10:14 Discord. Come chat with me inside and then you can say funny things to me and get the opportunity to suggest new video ideas. Come join our Patreon. Thank you. Link is in the description box below. How many years did it take from start to where you guys are at now? It's been 8 years now. Wow. Oh man, it's been a while cuz I mean I would include the journey of when we all invested into a dessert shop together. Yeah. So that's that's kind of like the beginning. What was the dessert shop? It was called Pop Bar. That So we franchised that one. You guys, not that one. That's a different team, but we franchised the same brand. The same concept. Yeah, cuz they had one in Arcadia, too. No. Yep. Roland had one. Yeah. Popped up down the street from my house in Irvine. Right. Yeah. Right across the street. Yeah, I can walk there. We franchised it and then it didn't work out. So, we switched it to a
11:05 couple other concepts and then ended up on June Bi, which is pretty cool. Yep. And that was cool cuz like um the journey was just so interesting just seeing how like all of our friends just got together and and there one thing led to another and it just kept rolling and rolling and we weren't even going to franchise. We were just going to open like three four stores in LA and call it a day. But then we're like, well, instead of opening up a new store, why don't we just turn it into a concept and just open it up for other people? Yeah. I I remember you guys going to Japan and freaking seeing a video you just picking the actual tea leaf like it was a freaking documentary. I was like, that's freaking cool. I was like, that's dope. Cuz I know everybody else that jumps on a craze, they don't go that deep. They literally like, I'll buy the powder, I'll mix it with the water, I'll shake it a little bit, I'll sell it for $8. Um, so it was really cool that you were
11:55 able to kind of just go like elbow deep and actually like go very crafty with No, we learned a lot. That's elbow deep, baby. And it's really cool cuz in the beginning we're like, "Oh man, I don't know." Um, it's a big risk cuz when you're early adopter, you're you have to educate. Like no one knew what matcha was back then. You're crazy. Yeah. So we're like well but the good thing is it's like if we are the first then we we position ourselves when it does pop off which is what happened now. So our kind of gamble paid off right cuz it's like just 2 3 years ago we were educating people and being like have you tried matcha before? No. But now we have people coming in and being like you also sell the powder. So they don't just want the drinks but they'll buy the powder. And it increased our sales like 20%. Yeah. And you have to use the right
12:45 equipment to do it. And now there's a whole process involved. Um, well, you went from crazy to genius. And that's usually how it goes, right? You have an idea that nobody does, you're crazy. Like, what are you thinking? And then if it hits, you're freaking genius. If it doesn't hit, you're like, I told you you're crazy. Like, what were you thinking? And it's just a matter of time cuz it's it might hit later. If you just stay in the game long enough, it'll hit. Yeah. It's cool. Recently, Keith Lee stopped by, too. Oh, dope. Our uh location out in uh Dallas. So, he tried the soft serve and he also tried it. And it was cool cuz uh he compared three matcha drinks from out there cuz he would like pull all his fans like which one should I stop by? And Jumbi end up being one of them. His favorite one got 8 out of 10. Um which means his taste buds aren't that good. And then he said ours was 7.5 out of 10 and then the other one got two out of 10. So I'm like, "Oh ████ I'm glad he didn't say
13:35 ours is two out of 10." What did the two out of 10 taste like? I don't know. What the ████ But I'm like, "Oh ████ that's crazy." But he liked it though. And he went back again. Yeah. He liked our soft. Did you guys see an uptick in your guys' sales over there? Um cuz I know that all influential all across all the The week that he did it, we sold a lot of soft serve across all Jes. And yeah, and I mine's in Hawaii. So the one he went to was Texas. Food influencer right now. He's like the biggest dude. He's big. Yeah. You know, Kevin Lee's brother. Isn't that crazy? So crazy. The MMA fighter. Kevin Lee. That was random. And he used to fight too. Used to fight, too. Beltor. He's an MMA fighter, too. Now he's food critic. Yeah. He said, "F███ fighting. I'm just going to make money doing food critic stuff." Fighting, eat food. Dang. Uhoh. Hey, don't don't go back to that. That's what
14:26 I did for a year and a half. Look where it got me. 186. It recorded it. Yeah. But it's been a crazy journey though because we're also meeting like a lot of people in the in the franchise space that's been in it for a long time or like cuz there's groups out there like um the young brands like um the one that owns Taco Bell, Pizza Hut, all that. So that's like they have like a ton of brands in in their team already. So I'm like how the hell do you even have something so crazy? But the scale is nuts. It's like there's guys like us that have like five stores and then there's like people like 10,000 stores. Yeah. And I'm like it's it's keeps getting crazier and crazier. And and do they manage it based off of like a like a corporate structure like have levels? They just have to have a
15:16 bunch of levels, a lot of authority, a lot of administration and leadership just on the people side. They run it like a country cuz there's so there's like tens of thousands of employees. So, like the thing that always got me feeling cool though is when we get into those meetings and they find out how slim the team is, they're like, "What the heck?" They're like, "How did you do that?" And that's I think the cool thing about being an entrepreneur and and early stages is most of us are so scrappy. Like we don't know what we're doing, but that also helps cuz we're not tied to like the traditional. And the way that they do things traditionally and all that is like they don't use tech that much. They use manpower and they need like a hundred people to do what we can do with three. Wow. Yeah. So, for example, like we don't have a sales team. We just have one partner that is
16:06 doing all the sales. What? But a lot of the traditional people like they'll hire an outside franchise sales team and then they'll be like, "All right, I need a budget of like a couple hundred grand." Because most of that money goes to whining and dining buyers. Cuz a buyer would be like, "Oh yeah, I might buy like five of your stores. Okay, cool. Let's go have dinner." You buy them that steak. You give them whiskey. You talk old school business style, right? Whereas for us, we use tech and we use digital and we figure out like what's the profile of the person who might be looking for this. They click, it goes through this funnel, boom, and then they get a phone call. So, it's all serious buyers and it's a different kind of target. Yeah. Yeah. Wow. Somebody has a bunch of money. They want to get in business. Maybe it's matcha, but they
16:56 have no idea what to do about it. That's where the franchise comes in. How do they get started with you? Well, that wouldn't be our profile. So, I wouldn't I wouldn't take them. What is your profile? A profile is someone who wants to own and operate. Cuz I think that's a different stage. There are people out there like that like Shaq and whoever. there's like I want 20 fat burgers right now. That's a different stage. I think the stage we're in is um each region we want people that are heavily involved and they want to also work the shop and own it. Prison operators. Yeah. Because they're going to be the guys in that region that'll open up after one successful shop. They'll be like 2, three, four, five, which we already have too. Like there'll be people in cities like I'm ready to open my second one or down the street. We don't want the the baller that's like, I'll buy five. But then it's like, yeah, you got the money, but you're not going to work and you
17:47 don't care cuz you have KFC and 10 other whatever. And then this is just something in your portfolio. The game changes when now you have a solid kind of group in each region. And then you're like, okay, we got we got Richard over there locking down Texas. We got, you know, whoever on this area, right? Then they can also support and click up with someone that's got the money to go, I want to open up 20 stores. Well, great. Let me link you up with this guy. You guys partner. So essentially, uh, you would offer regional exclusivity then. So like they are cornering the market for Orange County. They got it down. They're overseeing it. Then cool. Now you can we we trust you to utilize our brand. Yep. Now you expand. Yep. Yeah. And then that's going to happen a bunch of times. You see everywhere, too. Yeah.
18:37 But the profile is like seats like what kind of person do you want also on your team? Someone that cares. Yeah. Cuz you could get anybody with money at that level. I was like, "Oh, that's true." So it's it's fairly cheap to open one. Um you know, you could do it in less than 300k. And and it really depends cuz most of that money doesn't even come to Jumbi. Most of that money is construction. So it's barely anything that comes to Jumbi. So, if you find like a boba shop that's failing and it's like, well, I could take this over for like 20k, there you go. You you could you could start with very little money and each of our stores, we got the brand strong enough to where like you could generate around 700k plus. So, people are they're getting their investment money back in like 2 3 years depending, you know. Yeah,
19:28 that's such a cool process. And you guys have been doing for so long. You guys have it all ironed out. Uh well I I mean I just run my own store. This is we have a team we call them the core for they're they run everything. Yeah. And then so they're like the more corporate side of things. So they've been you know props to them. They've been pushing this whole thing on that end and growing the company. Yeah. Freaking sick. And on entrepreneur magazine ████ deal. Yeah. That's awesome you guys. I got to brag though. My store is number one. They can't ████ beat me yet. Yes.
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