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Aug 8, 2016 · 16m · top-founders

EP 380: She Makes $500k On Lice Treatments Franchise

Nathan Latka · 9m spoken Cody Bradstreet · 5m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top, host Nathan Latka interviews CPA-turned-entrepreneur Cody Bradstreet, who shares how she transitioned from corporate sales at Dell to generating over $500,000 in revenue across two specialized lice treatment clinics.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 65.6% of the talking time here. How this is scored →

Nathan as informed peer 2.8 Guest teaching 2.2 Guest disagreement 1.2 Nathan pushing back 2.2
05100:0010:000:28–4:29 · Nathan as informed peer 3/10 Weekly Giveaway Winner Announcement Nathan introduces Cody and inquires about her corporate background at Dell and why she transitioned to entrepreneurship. Cody explains her risk mitigation strategy while working in outside sales. The tone is light and conversational.4:29–8:54 · Nathan as informed peer 5/10 Business Acquisition, Pricing Model, and Valuation Nathan presses Cody for specifics on the acquisition price, negotiations, and franchise royalty percentages. Cody explains the mechanics of quarter-hour billing and gross royalty fees while calling out an unreasonable buyout valuation.8:54–10:55 · Nathan as informed peer 4/10 Scaling Revenue, Operational Costs, and Contract Advice Nathan explores the revenue growth and cost structure across Cody's two clinics. Cody shares operational details regarding staffing costs and provides advice on franchise contract renewal terms.10:56–14:25 · Nathan as informed peer 2/10 Sponsor Message: HostGator Web Hosting Deals Following an ad break and live event promotion, Nathan runs through his standard Famous Five rapid-fire questions. Cody gives playful answers about writing her own book and getting eight hours of sleep.14:25–16:27 · Nathan as informed peer 0/10 Episode Wrap-Up and Previous Show Recap Nathan delivers a closing solo monologue summarizing key takeaways from the interview, teasing the next episode, and reading sponsor ads. With no guest present, host interaction metrics are zero.0:28–4:29 · Guest teaching 2/10 Weekly Giveaway Winner Announcement Nathan introduces Cody and inquires about her corporate background at Dell and why she transitioned to entrepreneurship. Cody explains her risk mitigation strategy while working in outside sales. The tone is light and conversational.4:29–8:54 · Guest teaching 4/10 Business Acquisition, Pricing Model, and Valuation Nathan presses Cody for specifics on the acquisition price, negotiations, and franchise royalty percentages. Cody explains the mechanics of quarter-hour billing and gross royalty fees while calling out an unreasonable buyout valuation.8:54–10:55 · Guest teaching 4/10 Scaling Revenue, Operational Costs, and Contract Advice Nathan explores the revenue growth and cost structure across Cody's two clinics. Cody shares operational details regarding staffing costs and provides advice on franchise contract renewal terms.10:56–14:25 · Guest teaching 1/10 Sponsor Message: HostGator Web Hosting Deals Following an ad break and live event promotion, Nathan runs through his standard Famous Five rapid-fire questions. Cody gives playful answers about writing her own book and getting eight hours of sleep.14:25–16:27 · Guest teaching 0/10 Episode Wrap-Up and Previous Show Recap Nathan delivers a closing solo monologue summarizing key takeaways from the interview, teasing the next episode, and reading sponsor ads. With no guest present, host interaction metrics are zero.0:28–4:29 · Guest disagreement 1/10 Weekly Giveaway Winner Announcement Nathan introduces Cody and inquires about her corporate background at Dell and why she transitioned to entrepreneurship. Cody explains her risk mitigation strategy while working in outside sales. The tone is light and conversational.4:29–8:54 · Guest disagreement 3/10 Business Acquisition, Pricing Model, and Valuation Nathan presses Cody for specifics on the acquisition price, negotiations, and franchise royalty percentages. Cody explains the mechanics of quarter-hour billing and gross royalty fees while calling out an unreasonable buyout valuation.8:54–10:55 · Guest disagreement 1/10 Scaling Revenue, Operational Costs, and Contract Advice Nathan explores the revenue growth and cost structure across Cody's two clinics. Cody shares operational details regarding staffing costs and provides advice on franchise contract renewal terms.10:56–14:25 · Guest disagreement 1/10 Sponsor Message: HostGator Web Hosting Deals Following an ad break and live event promotion, Nathan runs through his standard Famous Five rapid-fire questions. Cody gives playful answers about writing her own book and getting eight hours of sleep.14:25–16:27 · Guest disagreement 0/10 Episode Wrap-Up and Previous Show Recap Nathan delivers a closing solo monologue summarizing key takeaways from the interview, teasing the next episode, and reading sponsor ads. With no guest present, host interaction metrics are zero.0:28–4:29 · Nathan pushing back 2/10 Weekly Giveaway Winner Announcement Nathan introduces Cody and inquires about her corporate background at Dell and why she transitioned to entrepreneurship. Cody explains her risk mitigation strategy while working in outside sales. The tone is light and conversational.4:29–8:54 · Nathan pushing back 5/10 Business Acquisition, Pricing Model, and Valuation Nathan presses Cody for specifics on the acquisition price, negotiations, and franchise royalty percentages. Cody explains the mechanics of quarter-hour billing and gross royalty fees while calling out an unreasonable buyout valuation.8:54–10:55 · Nathan pushing back 2/10 Scaling Revenue, Operational Costs, and Contract Advice Nathan explores the revenue growth and cost structure across Cody's two clinics. Cody shares operational details regarding staffing costs and provides advice on franchise contract renewal terms.10:56–14:25 · Nathan pushing back 2/10 Sponsor Message: HostGator Web Hosting Deals Following an ad break and live event promotion, Nathan runs through his standard Famous Five rapid-fire questions. Cody gives playful answers about writing her own book and getting eight hours of sleep.14:25–16:27 · Nathan pushing back 0/10 Episode Wrap-Up and Previous Show Recap Nathan delivers a closing solo monologue summarizing key takeaways from the interview, teasing the next episode, and reading sponsor ads. With no guest present, host interaction metrics are zero.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 64% · guest 36%0:00 · Nathan 64% · guest 36%3:00 · Nathan 40.8% · guest 59.2%3:00 · Nathan 40.8% · guest 59.2%6:00 · Nathan 43.9% · guest 56.1%6:00 · Nathan 43.9% · guest 56.1%9:00 · Nathan 80.3% · guest 19.7%9:00 · Nathan 80.3% · guest 19.7%12:00 · Nathan 79.7% · guest 20.3%12:00 · Nathan 79.7% · guest 20.3%15:00 · Nathan 100% · guest 0%15:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 8:32 Rejecting the franchisor's valuation on camera

Cody bluntly dismisses the franchisor's three-million-dollar asking price as overvalued and looks directly into the camera to state she will not pay it.

 Hardest push from Nathan ▶ 5:39 Host insists on purchase price details

When Cody deflects the purchase price inquiry by comparing it to asking her weight, Nathan immediately pushes back demanding a clear range.

 Biggest teaching moment ▶ 7:10 Cody explains franchise royalty mechanics

Cody educates the host on how standard franchise royalty models operate on top-line gross revenue rather than profit margins.

 Nathan holds their own ▶ 9:59 Nathan spots staffing revenue mismatch

Nathan immediately catches the mathematical discrepancy of supporting eleven staff members on 250k top-line revenue, prompting Cody to clarify her total revenue across both clinics.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Giveaway Winner Announcement 3212 Nathan introduces Cody and inquires about her corporate background at Dell and why she transitioned to entrepreneurship. Cody explains her risk mitigation strategy while working in outside sales. The tone is light and conversational.
Business Acquisition, Pricing Model, and Valuation 5435 Nathan presses Cody for specifics on the acquisition price, negotiations, and franchise royalty percentages. Cody explains the mechanics of quarter-hour billing and gross royalty fees while calling out an unreasonable buyout valuation.
Scaling Revenue, Operational Costs, and Contract Advice 4412 Nathan explores the revenue growth and cost structure across Cody's two clinics. Cody shares operational details regarding staffing costs and provides advice on franchise contract renewal terms.
Sponsor Message: HostGator Web Hosting Deals 2112 Following an ad break and live event promotion, Nathan runs through his standard Famous Five rapid-fire questions. Cody gives playful answers about writing her own book and getting eight hours of sleep.
Episode Wrap-Up and Previous Show Recap 0000 Nathan delivers a closing solo monologue summarizing key takeaways from the interview, teasing the next episode, and reading sponsor ads. With no guest present, host interaction metrics are zero.

Statements from this episode (11)

Opinion
Bradstreet: Dell pays well but they own a piece of your soul
“They just expect a lot out of you, and they pay you well, but they own a little piece of your soul.”
Cody Bradstreet Aug 8, 2016 ▶ 1:47
Assertion Contradicted
Bradstreet: Dell Conducts Large Layoffs Every Single Year
“Dell has Dell has large layoffs every, every year.”
Cody Bradstreet Aug 8, 2016 ▶ 2:49
Disclosure
Bradstreet grew her lice franchise while working full-time at Dell
“And so I bought the life's place and I ran that and grew that and made that very profitable at the same time I worked at Dell.”
Cody Bradstreet Aug 8, 2016 ▶ 4:17
Assertion Not checkable as stated
Austin lice clinic generated under $50K before Bradstreet bought it
“Oh, the total revenue of the year I purchased it was probably Maybe less than 50,000.”
Cody Bradstreet Aug 8, 2016 ▶ 4:54
Disclosure
Bradstreet's lice clinic bills by the quarter-hour for chemical-free removal
“So the major product is actually the service to remove lice out of your hair. It's just the manual removal, and we don't use any chemicals or pesticides, so it's safe. And that's time-based, and we charged by the quarter hour, just like lawyers.”
Cody Bradstreet Aug 8, 2016 ▶ 5:09
Disclosure
Bradstreet paid roughly one year's Dell salary for her first lice clinic
“Not, it wasn't an insignificant amount, but probably close to a year's salary, Adele.”
Cody Bradstreet Aug 8, 2016 ▶ 5:43
Disclosure
Bradstreet pays a 5% gross revenue royalty fee to her franchisor
“I agreed to five percent.”
Cody Bradstreet Aug 8, 2016 ▶ 7:26
Assertion Not checkable as stated
Bradstreet's franchisor wants $3 million to sell the entire lice business
“Her number is three million.”
Cody Bradstreet Aug 8, 2016 ▶ 8:23
Opinion
Bradstreet believes her lice franchisor's $3 million asking price is overvalued
“I think it's overvalued at three million.”
Cody Bradstreet Aug 8, 2016 ▶ 8:32
Disclosure
Bradstreet's two lice franchise clinics generate $500,000 in total annual revenue
“Yeah, it's about half a million dollars total revenue.”
Cody Bradstreet Aug 8, 2016 ▶ 10:08
Insight
Bradstreet advises franchise buyers to check royalty increase terms on renewals
“You need to look out for what the rules are around raising royalty fees on renewals.”
Cody Bradstreet Aug 8, 2016 ▶ 10:28
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