How can Private Equity investors move past the spreadsheet and better understand the real-life stakes of their franchise partners?

In this episode of Owl’s Edge Podcast, host Susan Black-Beth sits down with industry veteran Michael Isakson, the former President and COO of ServiceMaster Franchise Services Group.

Having led a system of 5,000 units across 34 countries, Mike explains why the most successful business transitions to private equity require more than just financial capital. They require relationship capital.

Drawing from Mike’s experience overseeing $2 Billion in revenue and Susan’s 30 years in the franchise industry, they explore how to keep the core values of a franchise brand alive when big checks and big decisions start moving from individuals to public boards to private equity groups.

Key Themes Include:

• Why recognizing that a franchisee’s investment represents real-life sacrifices, like selling a beloved motorcycle, is the foundation for mutual respect.

• How the focused environment of private equity can create immense wealth for families while requiring a heightened level of servant leadership.

• Why engagement - measured through conference attendance, awards, and participation - is a critical leading indicator of a franchise system’s long-term health.

Practical Insights for Success

For Operators (Franchisors & Franchisees)

• Success comes to those who engage. Don't just pay your fees; attend the conferences, win the awards, and involve yourself in the community to maximize your investment.

• Recognize that private equity ownership brings a specific discipline to data that can be used to improve unit-level profitability.

For Investors (Private Equity, Family Offices, Independent Sponsors)

• Understand that the capital provided by a franchisee often represents their life savings or a significant personal sacrifice.

• Don't just look at the spreadsheet. Start a discussion on how to weigh and measure franchisee engagement as a primary performance indicator.

Guest Bio: Michael Isakson is the former President and CEO of ServiceMaster Franchise Services Group, where he oversaw iconic brands including ServiceMaster Clean, Merry Maids, Furniture Medic, and Ameritech. During his tenure, he led a system of 5,000 franchisees generating $2 billion in annual revenue across 34 countries. A past Chairman of the International Franchise Association (IFA), Mike has served as a private equity operating partner, a board member, and an investor. He is a recipient of the IFA’s Hall of Fame Award and is widely regarded as a champion of servant leadership within the global franchise community.

Support Owl’s Edge Podcast:

Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway! @AuspiciousOwlGroup

If you know a franchise owner/operator or an investor who is seeking their business “Edge,” share this episode with them today.

Show Notes:

Follow Auspicious Owl Group on LinkedIn

https://www.linkedin.com/company/auspicious-owl-group/

Connect with Susan Black-Beth on LinkedIn
https://www.linkedin.com/in/susan-e-blackbeth/

How can understanding human psychology transform your franchise into a high-growth, high-trust partnership?

In this episode of Owl’s Edge Podcast, host Susan Black-Beth sits down with world-renowned business psychologist and author Greg Nathan to pull back the curtain on the human side of the franchise business model.

Drawing from Greg’s decades of research and Susan’s 30 years of lived experience, they discuss why the most successful systems aren't built on spreadsheets alone, but on the strength of the relationship between the franchise operators and the franchise owners and private equity investors.

The conversation centers on Greg’s three pillars for a successful partnership: Respect, Trust, and Connection and how to create those within your business.

Key Themes Include:

• Why recognizing the emotional and financial investment of every operator is the foundation for system-wide alignment.

• How consistent integrity and visibility turn "smart" corporate strategy into "wise" operational success.

• Why the traditional "command and control" leadership model fails in franchising and how leading by influence creates a culture of transparency and trust.

Practical Insights for Success:

For Operators (Franchisors & Franchisees)

• How to use conflict as a catalyst to move from "me" back to "we."

• Why it’s valuable to invest time building personal connections with your partners before you’re in a crisis.

For Investors (Private Equity, Family Offices, Independent Sponsors)

• Ditch the corporate directives. In a system of independent owners, your greatest influence comes from empowering those with the relationship capital.

• There is no substitute for face-to-face connection. High-trust partnerships are built on the ground, not in the boardroom.

Guest Bio: The Franchise Relationships Institute (FRI) was founded 35 years ago by renowned business psychologist, Greg Nathan, also author of “Profitable Partnerships”, the world’s most popular book on how to create healthy franchise relations. FRI’s mission is to foster profitable partnerships between franchisors and franchisees, and its educational programs and proprietary models, such as The Franchise E-Factor, are based on extensive research and practical experience with over 550 franchise brands. Greg Nathan’s global contribution to responsible franchising has also been significant. He is a recipient of the IFA Crystal Compass Award for franchisor leadership and an inductee into the Australian and New Zealand Franchise Halls of Fame. Greg’s training sessions for franchisor executives, field consultants and franchisees are renowned for their practical value and high engagement and consistently achieve satisfaction ratings of over 95%.

Support Owl’s Edge Podcast:

Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!

If you know a franchise owner/operator or an investor who is seeking their business “Edge,” share this episode with them today. @AuspiciousOwlGroup

Show Notes:

Follow Auspicious Owl Group on LinkedIn

https://www.linkedin.com/company/auspicious-owl-group/

Connect with Susan Black-Beth on LinkedIn

https://www.linkedin.com/in/susan-e-blackbeth/

Connect with Greg Nathan

https://www.linkedin.com/in/gregnathan/

Buy Greg’s Book “Profitable Partnerships”

https://www.amazon.com/Profitable-Partnerships-Improve-Franchise-Relationships/dp/0646402714

In this episode, host Susan Black-Beth sits down with franchise executive and operator Liberty Bernal to examine what happens when private equity ownership intersects with franchise culture. Drawing from Liberty’s experience selling her brand to PE, they unpack the emotional, operational, and leadership consequences of rapid change inside franchise systems.

Key themes include:

• The human cost behind franchise decisions and why franchisees must be treated as stakeholders

• The difference between being nice and being kind in franchise development and leadership

• Why leadership by influence—not command and control—is essential in franchising

• How trust is built through listening, visibility, and follow-through

  Liberty also shares a cautionary contrast between two PE-appointed CEOs - one who didn’t prioritize franchisees and damaged the system, and another who rebuilt trust through servant leadership and field engagement.

• For Operators (Franchisors & Franchisees)

  • Set expectations early: Transparent conversations about risks, change, and performance standards build long-term credibility.
  • Be visible in the field: Face-to-face engagement can accelerate trust recovery in distressed systems.
  • Qualify harder in development: It is better to decline a candidate than onboard a misaligned operator.

  For Investors (Private Equity, Family Offices, Independent Sponsors)

  • Field engagement is a strategic activity: Board expectations should explicitly support executive time in market.
  • Pace discipline: Slowing development to stabilize operations can increase long-term return through improved royalty durability and reduced churn.
  • Support infrastructure ROI: Investment in training, onboarding, and coaching lowers failure rates and protects brand equity.

  Your Host

  Susan Black-Beth, is the Founder and Managing Partner of Auspicious Owl Group and a lifelong Franchise Activist. She’s sat in every seat from the tailgate of a pick-up truck at her car wash franchise to the boardrooms where the most difficult questions are being asked.

  Guest Bio

  Liberty Bernal is a franchise executive, advisor, and speaker with more than 30 years of experience across franchise development, operations, marketing, and leadership. She has worked with both emerging and established brands, helping founders and leadership teams build scalable systems, strengthen culture, and grow with intention. Currently serving as President and COO of Sweet Influencers, Liberty works at the intersection of franchising, technology, and brand growth, helping franchise brands modernize how they attract and support franchisees. She also advises founders and leadership teams on structure, strategy, and sustainable expansion. Known for combining operational expertise with emotional intelligence, Liberty brings a human-centered perspective to franchising. Her work focuses not just on building businesses, but on helping people build lives that align with who they actually are. Outside of work, Liberty is a wife and mom who prioritizes family, health, and living a life that feels as good personally as it looks professionally.

  
  

  Support Owl’s Edge Podcast:

  Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!

  If you know a franchise owner/operator or an investor who is seeking their business “Edge,” share this episode with them today.

  Show Notes:

  Follow Auspicious Owl Group on LinkedIn

  https://www.linkedin.com/company/auspicious-owl-group/

  Connect with Susan Black-Beth on LinkedIn

  https://www.linkedin.com/in/susan-e-blackbeth/

  Connect with Liberty Bernal on LinkedIn:

  https://www.linkedin.com/in/libertybernal

  Challenged Athletes Foundation:

  https://www.challengedathletes.org/