For four-time franchise CEO Dave Keil, it’s all about scaling companies for good. A few years back, Dave had a hypothesis that if you applied the same processes and operations of franchising commercial businesses to nonprofits, you could scale them just as successfully, and with massive positive impact.This is how Franchise for Good was born. Before that, Dave spent his career leading and growing businesses like HoneyBaked Ham and Pure Barre where he fell in love with the art of franchising. Now, he’s bringing those lessons to the nonprofit world and unlocking potential for organizations to scale their missions. Dave chats with Breaking Schemas co-host John Branch about his career journey from engineer to franchise CEO, how he has helped grow franchise brands through incubators like Franworth, and how he plans to disrupt the nonprofit space with the franchising model. *Breaking Schemas is a production of the Yaffe Digital Media Initiative at Michigan Ross and is produced by University FM.*Episode Quotes:His first CEO job05:02: I ended up going and leading three different franchise companies as chief executive. So, the first one was the Honey Baked Ham Company. A family held company who had been operating for 59 years. I had been on the board. They needed an M&A person and someone that knew CPG because their desire was to move. They had shops that they sold hams in, but they wanted to expand, and they wanted to go into grocery. And they were needing to do some M&A’s. So, I went in. I'd been on the board and saying, “Guys, you got to bring this together. We're leaving a bunch of money on the table.” And they finally convinced me to come join.Only 16% of all franchisors make money12:00: The secret in franchising is that there's only 16% of all franchisors that actually make money. And franchising, as you know, it's not just McDonald's. It's every fast food on the planet. It's every hotel. It's every boutique fitness, every boutique beauty business there, every service-based business. Molly Maid, Mr. Handyman, Garage Kings, those types of businesses are all franchises. So, it's a great way to scale and replicate, but it's hard to do only 16% get to that 100 mark. And that tends to be the number, John. If you can go and get 100 units open, then you have a successful franchise.Disrupting the franchise business by taking off the hurdle of half a million dollar net worth25:39: We're building what we're calling Beloved Brands, our seven brand portfolio. And we're removing $500,000 as the hurdle to buy a franchise. We're going to test for your competence as a leader. Yes, you've got to be fiscally responsible. Yes, you're going to have to show leadership capabilities and be able to follow a system and lead a team and go deliver milkshakes or garage floor coating, whatever that is, but honestly, we were using half a million bucks of net worth as the proxy for your ability to be a great owner of a business. And that's not right. What it should be is testing for grit and leadership skills and fiscal responsibility. So that's what we're changing.Show Links:Dave’s websiteFranchise for GoodFranworth

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