Celebrity investors helped convince large multi-unit operators to buy franchises
Arman Oganesyan · Dave’s Hot Chicken: Arman Oganesyan · Jun 10, 2024 · at 58:29
Dave's Hot Chicken co-founder Arman Oganesyan explains the tactical value of recruiting celebrity backers like Drake and Samuel L. Jackson to de-risk multi-unit franchise sales to large operators.
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“I think what it really helps with this franchise sales, right? Because as you're going after these really big franchise groups that own hundreds of stores, you know, they don't want to take a risk on a one store or two store concept, you know, as popular as they might be in Los Angeles. So, you know, having investors like, let's say saying, oh, Samuel L. Jackson is an investor and Drake is an investor. It gives them a little bit of assurance of like, okay, so Maybe if they've invested, like maybe there's something here. So you, we would really use that to try to sell stores initially until the stores would open up and then they would kind of, you know, the numbers would speak for themselves. So you wouldn't necessarily have to use Drake's name as much or Samuel L. Jack's name as much. So then they eventually over time just became investors. But at first they were pretty key to us selling stores to big groups while only having one or two stores open.”
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