In this episode of EYL, Rashad Bilal and Troy Millings sit down with Derrick Hayes, the owner of a popular restaurant franchise. Derrick shares his journey of deciding to franchise his restaurant and the steps involved in making it a reality. He emphasizes the importance of listening to his gut instinct and taking the time to do things the right way.
Derrick explains that he had the opportunity to franchise a few years ago, but he held off because his gut feeling wasn’t in alignment. He believes in choosing his gut over his heart and mind because it never lies to him. He acknowledges that while he could have had numerous franchise locations by now, growing too fast could potentially destroy the quality of his brand. He wants to build a long-lasting and successful business, not just chase immediate financial gains.
When it comes to deals and making money, Derrick focuses more on the back end rather than the front end. He believes in prioritizing ownership and long-term success rather than short-term profits. He reveals that he has chosen not to disclose his evaluation and valuation to the world at this point. Instead, he wants people to see the work he is doing and form their opinions based on that. He wants to change minds through his actions, not just numbers.
The process of franchising Derrick’s restaurant took about a year and a half, mainly due to creating the franchise disclosure document (FDD). The FDD is the comprehensive document that outlines all the key details about the franchise. One crucial aspect of the FDD is the Item 19, which includes financial information that potential franchisees review before making a decision. Derrick and his team put in the effort to ensure that their financials are strong and appealing.
In terms of expanding the franchise, Derrick explains that interested individuals need to have the necessary capital and go through the paperwork process. Once the paperwork is complete, they visit Derrick’s facilities and he personally meets them to assess their energy and suitability for the brand. He emphasizes the importance of having his wife, Pinky, by his side during these decisions, as he values her insights and opinions.
Derrick and Pinky use their respective brands as guinea pigs for expansion. They learn from each other’s experiences and adjust their strategies accordingly. Derrick mentions that the numbers and sales data help them gauge the success and viability of new locations. They support and uplift each other in this journey, understanding that their success is interconnected.
What sets Derrick’s restaurant apart from others in the industry is his community involvement and philanthropy. During the pandemic, when many businesses struggled, he stood up and served the community. He fed over 1000 customers and 40 hospitals, showing his dedication and care during challenging times. This level of commitment and community support has earned him respect and ensured his longevity in the industry.
Derrick’s success can be attributed to his genuine attachment to the community and his tangible contributions. He believes that his actions have made an impact and have resonated with people who want him to thrive. While other restaurant owners may talk about the difficulties they face, Derrick is opening multiple locations and experiencing growth. He recognizes the blessing of being in a different space and feels the responsibility to help others achieve their own success.
In this insightful conversation, Derrick Hayes provides valuable insights into franchising a restaurant and the importance of staying true to one’s instincts and values. His commitment to long-term success, community involvement, and continuous growth sets him apart in the industry. Join EYL as they delve into Derrick’s journey and learn from his experiences. #EYL #DerrickHayes #RestaurantFranchise #Success#CommunityInvolvement #Philanthropy
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