Speaker 1: 0:01

Welcome to the Multiply your Success podcast, where, each week, we help growth-minded entrepreneurs and franchise leaders take the next step in their expansion journey. I'm your host, tom Dufour, ceo of Big Sky Franchise Team, and as we open today, I'm wondering how your business differentiates. Or maybe another way to put it is how do you stand out from the noise in your industry? Well, our guest today is Kristen Denzer, and she shares with us how do you stand out from the noise in your industry? Well, our guest today is Kristen Denzer, and she shares with us how she's standing out and making a difference in a very competitive childcare industry.

Speaker 1: 0:34

Now, kristen is the founder and CEO of Tierra Encantada, the fastest growing Spanish emerging early education franchise in the US. She launched the first location in 2013 to offer playful, language-rich early education with chef-prepared, globally-inspired meals, a mission she continues while leading Tierra's national expansion through franchising and philanthropic initiatives. One other highlight to note is that she was named one of the top 100 female founders by Inc Magazine. You're going to love this interview, so let's go ahead and jump right into it.

Speaker 2: 1:11

Kristen Denzer. I'm the founder and CEO of Tiara Inc. Intata.

Speaker 1: 1:16

I'm excited to have you on and we've had a chance to meet prior to this and I'm so glad to have a chance for you to share your story with our audience and talk a little bit more about what you're doing. And I'd love for you to talk a little bit about your business and what you do, because I think it's really unique and specialized here.

Speaker 2: 1:35

Absolutely, thank you. So we are the leader in Spanish immersion, early education, so child care and preschool for children ages six weeks through six years of age, and beyond just language immersion. We also have a really unique meal program, culinary program where we're providing to the children in our care you know all of their meals during the day while they're with us but that meal program is really a global culinary menu that has many, you know, non-animal protein products as well as many organic ingredients to really expand kids' palates.

Speaker 1: 2:09

What led you to get into this.

Speaker 2: 2:12

Well, this was not my first business, it was actually my fifth business. So I started consulting and then started an event rental company, then started a dog daycare and also bought real estate. And so then at one point I was doing all those things and I had kids. And then when I had kids and was looking for care, I saw that one that there was incredibly long waitlist for even the most basic kind of run of the mill childcare. And then, two, I really struggled to find something that had truly everything I was looking for. There are things that had a language immersion component or had like an interesting meal program or had some of these elements, but nothing had all of the things I was looking for.

Speaker 2: 3:07

And having already started other businesses, I think sometimes you can kind of get this like oh, I can do anything, I'm invincible mindset, so it's like I can do this. You know, no problem, I'll start a child care center. I learned a lot. I definitely am. I'm not a person that, like I didn't hire like a consultant or anything like that. I just read statute and read the licensing regulations and read the building code and all that fun stuff and figured it out and made a lot of mistakes, but my kids went there and so I really designed it around what I wanted for my children, and so there's a lot of attention and care put into really like every element of the program.

Speaker 1: 3:48

Fantastic, well spoken. Like a true entrepreneur. You see a need and don't see a way to fill it, so you're just going to jump in with hard work and get it done. Attitude I love this idea of language immersion and talking through that and we've got three kids and they're through kind of the young school years. But I'd love for you to talk about the benefits and why would that even matter?

Speaker 2: 4:12

Absolutely Well. So Spanish, you know, is the second most spoken language in the United States, you know, one of the top few in the world. It's exponentially increasing in terms of speakers here in the United States and so besides all of that, there's many proven benefits for children that learn another language at a young age. But I think what it really comes down to with our families is so many of our families they talk Spanish in high school because here in the United States, that's when you take a language, you don't usually take it any younger than that, and when you take a few years in high school you don't remember it usually I mean most don't.

Speaker 2: 4:53

And so you know, our kind of typical parent or family enrolled is a family where you know parents maybe took Spanish in high school. They don't remember it. They wish they did, they want to know another language and they want their children to have that opportunity, and so when a child starts with us, they're starting at really like the best age to learn a language and so they're learning naturally, just like they're learning English at home. And so you know, if you think about if you have kids and you think about how they learned the language you didn't, you know, sit down with your infant and be like you know B-A-L. You know you didn't say this is English. You know you didn't teach them that, you just talked to them, you just went through your day.

Speaker 2: 5:32

And that's how the kids learn in our program. It's fully immersed in Spanish and they learn through conversation and context, and so that's how they're able to really learn and become fluent I mean at the level that age is. But when they leave our program, parents are always amazed because they'll turn to mom and they'll talk in English. Then they'll turn to their teacher and talk completely fluently in Spanish, and so it's really awesome to see, and so we're excited to be able to bring this to more families.

Speaker 1: 6:00

You know, my wife and I would have loved to have had a program like yours, as our kids were young and going through that. That would be amazing, as they are enjoying their Spanish classes and middle school and high school and going through that process. One thing I was curious about with you starting the business, did you have a background in early childhood education?

Speaker 2: 6:21

No, no, I did not, so I don't have a background in business either. My first business class was actually taken in the last year, so I just figured it out, and that's what we say to our franchisees too. I mean, I think sometimes people think, well, I have to have a background in early childhood education, or oh, I need to speak Spanish as the franchisee. No, you don't need to. Now, if you are planning to work at the center as your director, then that's a little different. But how I had designed the model was never that I was personally there as the director. I always hired someone that was, you know, experienced in early childhood education to run the center, and so that person you know the staff at the center need to, but me, as, like the founder, you know franchisees as the business owner, they don't need to.

Speaker 1: 7:16

You answer the question. That's kind of where I was going. I was wondering, as I know you're franchising, would a franchisee need to have either a background in being bilingual or having a specific degree or background in education or early childhood education?

Speaker 2: 7:32

They do not. I mean really the staff at the center. They'll need to have different qualifications and every state is different. Every state is different with what they are looking for for the director, for the staff, and that's something we support with, you know, figuring out like, okay, what are the regulations of your state say is required? But for the actual business owner, unless they plan to actually work at the center, they do not need to have, you know, early education, background degree, they don't need to be bilingual. It's the staff at the center that do.

Speaker 1: 8:04

One thing you had mentioned pre-show here and I just have to bring it up as we talk about this franchising idea, as the business is expanding through franchising. You had made mention that you were at one point anti-franchising, so I'd love to hear a little bit about that journey.

Speaker 2: 8:29

It was for me and my business. I didn't think that I didn't want that path for the business initially because I was worried about the brand getting diluted. And you know, I built here to be something that I felt really good about, that I was able to really like put my values into and every way from, you know, beyond, just like the meal program and the language immersion, but with how we incorporate diversity intentionally, you know, diversity of all types, including family composition, because I believe, like kids should be able to see themselves in their environment and feel like all families you know are normal. How we have our staff and labor model set up, you know we offer benefits and 401k with match things that in childcare aren't as common. And so I was worried, that I was worried about the brand being diluted and then not being, you know, the special thing that I felt like I created with it.

Speaker 2: 9:18

And so, after talking to people, like attacking to the attorneys that I've used for a long time, one of the, they've been very enfranchising.

Speaker 2: 9:26

They have a lot of experience in franchising, have been general counsel for big you know, big big franchisors and stuff, and talking to them they've really like helped me understand how that is really a factor of like having a quality operations manual, brand standards and systems in place so that they're executed on, and so if you have that, then you don't have some of those issues. And so in talking to them and then some other people in franchising I know I started to feel better about it and really that was the big hesitation, because I've always been very passionate about entrepreneurship I mean, I just got done with the term six years on SBA MicroLenders board helping people start businesses and so I love entrepreneurship, I love helping people start businesses. I was just worried about the brand being diluted and so once I understood that piece of it and felt like that wasn't great to happen, then I felt like, okay, this is a really great path because I can marry both bringing you know Tiara to new communities and families, but also helping people achieve their entrepreneurial dreams.

Speaker 1: 10:34

You just said a couple of my favorite things about why I love franchising is one is just helping someone else get into entrepreneurship that maybe would not have if your franchise wasn't around, so I really really like that. Thank you for sharing a little bit of your journey. Speaking of your franchise, let's talk a little bit about your expansion. Where have you started? Where are you expanding? How's the business looking today?

Speaker 2: 10:57

Right now.

Speaker 2: 10:58

So we started in Minnesota, so the very first location opened in 2013.

Speaker 2: 11:05

Suburb probably not the best location had I known now then I would have not picked that as the first, but grew from there and the first half dozen was here in Minnesota.

Speaker 2: 11:19

And then I really want to make sure that franchisees are set up for success, and so I think it's important to have corporate locations, but also have corporate locations outside of our state, and so we have locations that are corporate in Texas, kansas, illinois, because we're really perfecting go-to-market and some of these elements so that we're not having franchisees be getting figs on this and I want to be able to know that, okay, our marketing plan yeah, it works great in Minnesota. But I want to be able to know that, okay, our marketing plan yeah, it works great in Minnesota. But I want to be able to prove out like, hey, we've got this dialed in, and so a franchisee feels confident that it works in more than just our home market. And so right now we have 16 locations 25% are franchise, 75% corporate, and then next year we'll have between 10 and 11 opening. It's a little bit longer of a development cycle just because construction and entitlements and stuff, but we'll end next year with somewhere in the like 26, 7 neighborhood.

Speaker 1: 12:19

I always love hearing how each franchisor does things a little bit differently as they start expanding and I really appreciate the approach you're taking and coupling company owned with a franchise growth strategy. And one thing I was curious about and you answered this a little bit, but I was thinking about for a franchisee coming in and you had mentioned they don't have to necessarily be bilingual if they're not in working in unit and they don't have to have necessarily a background in education or early childhood education as a background. How do you help train or get someone set up for success?

Speaker 2: 12:56

Once someone signs, you know, then the first part of the training is really around site selection, real estate. We send someone that goes and does a market tour with them, walks through sites and points out what to look for really to help. Because, for example, if you go to a site and there's only one toilet, that's we know right away, there's going to be a lot of costs with plumbing because you're going to have to trench a lot of plumbing throughout the building for all the bathrooms you know. Or if we walk a site and we notice, you know, stained tiles, there might be a roof leak. You don't want to invest a million dollars plus into a buildout and then have it be damaged by roof leaks. And so the first step is really making sure they understand what to look for, what the areas look like, how to pick the best sites and how to negotiate. And then we also have some baseline training around finance, early HR, because they'll hire their director first, not initially, it's more like eight weeks before open, but they'll want to have that knowledge. They're looking in the market recruiting, and so we do that training very early. And then the finance training around getting their chart of accounts set up so it's standardized. We require all franchisees to report P&L and balance sheet every month so we can benchmark, and so we have a standardized chart of accounts that they all use and so we make sure they're trained on those pieces and then, after those are done, then they're coming back later and we have a couple more trainings after that.

Speaker 2: 14:25

But then, once they have a site, then it's more around the operational policies, meal program, all of the curriculum, all of those elements. And it does include on-site at a center for a week so that they really get the idea of the flow of the center, what it is like to go through each day, and that includes their director. And then we send someone there too for two weeks where someone's there. Essentially how we overlap, it is the week before they open and the week after, and that way you know, we train the trainers. So we're watching how they're training their teachers and stuff, making sure, giving them pointers, because they'll be training anyone they hire after. And then they're for their open house to support set up classrooms, and then they're for their open house to support set up classrooms and then they're for their first meet. That way you know, operationally, if there's anything that comes up that there's questions about. There's just someone there making sure they really know what that looks like and someone easily answering things immediately when they need support.

Speaker 1: 15:22

Well, that sounds really, really comprehensive. You're doing high level right, so I mean we're not going through super fine detail that I'm certain you cover and go over with your franchisees as they join. Is there anything that you've learned that has been surprising to you as you've ventured into this franchise world?

Speaker 2: 15:39

I think something that's maybe been surprising is how truly nuanced and different all the different markets are in terms of entitlements and licensing. We've encountered some states where there's child care licensing for the state, but we recently encountered even a county, so it was like multiple child care licensing you needed, and so I think that's been a surprise just how complex regulatory elements are. Unfortunately, we have a lot of processes in place to catch these things, but I think that's been a surprise because in our home state it's pretty I don't want to say easy, but pretty straightforward, and so seeing that has been surprising, I'd say. But that's where one thing that I've really focused on the last when I decided to franchise and then since then last four or five years have focused on is making sure that we have a really strong foundation, because I think a lot of times when people think like, oh, emerging franchise, or they're thinking like, oh, there's like one location and three people and that's who's helping me franchise, and whereas with us I mean we have, I have 300 employees here at our corporate office supporting, we have 30 and I've invested in like really high caliber talent that have.

Speaker 2: 17:03

You know like our director of design and construction has worked for me for three years now and he came from McDonald's and you know Crisp and Green, I mean. So really strong talent to support, and we've used FranConnect for all of the workflows and the training since we started franchising in that way. You know, like you kind of touched on before high-level overview, but there is so much that goes into this in every way, because it's almost like you're opening a restaurant with the kitchen element but then also childcare too, and so we have that all built out so that all of these sorts of things they learn from my mistakes, you know, because I've made tons of mistakes when I started and so it's like trying to make sure that they don't have any mistakes that I made and building that in any sort of kind of stopgaps so that that doesn't happen.

Speaker 1: 17:50

Yeah, Having gone through the launch of franchising and now you're growing and expanding, is we work with emerging franchise brands and helping brands oftentimes launch right from the start and going into market. So for someone that might end up listening into this, that's at that launching phase or just starting. What advice might you give to a new or emerging franchise brand?

Speaker 2: 18:13

I would say definitely, make sure that you have multiple corporate locations that are profitable, that you do not need the initial franchise fee. You should be able to provide the structure and support without being reliant on the initial franchise fee. I think that's where sometimes you see some of the things we've seen over the years where people are selling licenses they probably shouldn't have sold and then there's lots of challenges and stuff, and so if you don't need that, then you can be really intentional with who you decide to partner with and make sure that you're just really building a lasting brand that is strong and reputable.

Speaker 1: 18:57

As someone's tuning in and they say well, I'd love to learn more. Get in contact. How can someone learn more about what you're doing? Check out your website or your business, or get in touch with you.

Speaker 2: 19:07

So I'm on LinkedIn but tiaraincantatacom is our website and Tiara's on LinkedIn and Instagram and all the social media, and so people can reach out on there.

Speaker 1: 19:18

Perfect, and we'll make sure we include that in the show notes here. This is a time in the show we like to make a transition and we ask every guest the same four questions before they go. And the first question we ask is have you had a miss or two on your journey and something you learned from it?

Speaker 2: 19:32

I would say one of the biggest lessons I've learned or misses and there's a really great quote that I love it's don't cling to a mistake just because you spent a lot of time making it. I think in particular with like hiring, you know you have someone that I think a lot of times people move very slowly on hiring changes and you don't realize the impact that that has on not just your brand but also the team. And I think you know in the earlier years I definitely made mistakes around that that you know I would have. I would have. I wish I had that quote then. That would remind me of that.

Speaker 1: 20:11

Oh, that quote's amazing. I am going to be writing that down in post-production to set right next to my desk. I love, love that quote. It's so succinct and specific. Well, let's look at the other side. Have you had a make or to a highlight that you'd like to share with us?

Speaker 2: 20:28

One is personal, one is more business. So personal, as a as a, you know, young teenage girl, I would read Entrepreneur Inc magazine, you know, and I would read about all the businesses and a few years ago Inc named me as one of the top 100 female founders. And being like named that from my like childhood kind of fan magazine just was really cool. It meant a lot. And magazine just was really cool, it meant a lot. And then the other moment that stands out a ton is a family shared in a review, a public review of us, that their child translated for them when they traveled to Central America. And just seeing like that sort of impact that you're having, where literally a five-year-old was translating for their family while they traveled, it's just really cool to like see the difference you're making in people's lives.

Speaker 1: 21:18

Oh, that's amazing. Well, congratulations on both and that's quite an accomplishment and recognition for you there with the award and that's pretty impressive for that five-year-old to be in some other country and help him. You know, mom and dad translate there. That's pretty amazing. Well, the next question we ask is have you used a multiplier to grow yourself personally, professionally, or any of the businesses you've run?

Speaker 2: 21:43

Yeah, I mean, I would say definitely understanding that. So I think, especially recently, in recent years, there's been a lot of talk of work-life balance and for me, I always try to view it as work-life integration as a founder, as an entrepreneur, there's going to be. If you really want to bring your company to another level, you have to really recognize sometimes what that takes and what that entails and be willing to be willing to do that. And so I think that the things like that, that has an impact too, just in terms of culture. And so you know, for example, sometimes I'll see an employee that's here at, like you know, 7pm.

Speaker 2: 22:29

I'm just like go home, like what are you doing? Let me help, you know, because it's like I ultimately, like I own the company and there I love that. That's great. But I want them to know that I appreciate that. But I want to make sure that I am someone that's like I'm working the hardest. I don't want to ever be that CEO that's like never at the office and out golfing while everyone's working like crazy and stuff. And so I think that trying to model and be a leader that I would want has been helpful just in terms of like retaining teams and then willing to kind of just do whatever it takes to make sure that we're a success and provide franchisees what they deserve.

Speaker 1: 23:09

Wonderful. Well, the final question we ask every guest is what does success mean to you?

Speaker 2: 23:15

Success to me means having Tierra and Quintana be, you know, in every state, being the both child care and employer of choice. That really is, you know, one of the top five largest child care providers in the United States. Expanding language access in every state.

Speaker 1: 23:37

Fantastic. Well, as we bring this to a close, Kristen, is there anything you're hoping to share or get across that you haven't had a chance to yet?

Speaker 2: 23:44

One other thing I'll just add quick is you know, when people are thinking about franchising, there's so many great concepts. I mean there really are. It's amazing how many different ideas there are that people can franchise. You know, and I think a lot of times people don't even think about child care because it seems complex or scary. But what I love about child care is it is something where, as a business mind side of it, you've got reoccurring revenue and a true differentiation, a true mode when parents are comparing against other providers and then on the more personal side, you get to actually see the positive impact you have in families and community. And so there's not a lot of businesses that one have one of those but have both, where you can have a really great you know business but then also truly like add a lot of value and be really proud of what you're, what you're offering.

Speaker 1: 24:45

Kristen, thank you so much for a fantastic interview and let's go ahead and jump into today's three key takeaways. So takeaway number one is when Kristen talked about creating the business and really seeing a problem that she was trying to solve for her own family, that she had started and she wanted to have something for her own kids and her own family where there was the language immersion. There were the international meals and a variety of meals available, and she looked and couldn't find it. So she decided, having been a serial entrepreneur, to solve the problem as a serial entrepreneur. So in solving her own problem she also created an opportunity that others were seeking and had demand for. So I just thought that was great. In solving a problem she differentiated in the market and really stood out from other similar types of services.

Speaker 1: 25:43

Takeaway number two that I liked is that a franchisee or an owner of her system does not necessarily have to have a specialization in early childhood education or related background. If they're not working in the day-to-day of the business, you're able to hire for those. Takeaway number three is in her multiplier when she said she views a work-life balance really as a work-life integration, and I thought that was really interesting, especially how her business has provided that opportunity for her, and now it's time for today's win-win. So today's win-win comes from the quote that Kristen shared that really made an impact on her, and the quote is don't cling to a mistake just because you spent a lot of time making it. I'm going to say it again Don't cling to a mistake just because you spent a lot of time making it.

Speaker 1: 26:44

I thought that was a fantastic summary and a great way to view mistakes that we've all made in business, in life, in business in life, and I think it's just a great, great approach to help you make the decision to move forward, to let go of time invested, money invested in things that maybe just aren't working anymore, that it's okay to say it's just not going the way that I thought and I need to make a change. And so that's the episode today. Folks, please make sure you subscribe to the podcast and give us a review, and remember if you or anyone you know might be ready to franchise their business or take their franchise company to the next level. Please connect with us at BigSkyFranchiseTeamcom to schedule your free, no-obligation consultation. Thanks for tuning in and we look forward to having you back next week.