Franchising usa T he ma g a z ine for franchisees
VOL 02, ISSUE 08, june 2014
$5.95 www.franchisingusamagazine.com
M AIN F EAT URE
pets and
franchising M a x i m i z e yo u r
Franchise expo experience
The Grow th Coach Bus ines s and Sales coaching
Serious about changing the world! LATEST NEWS
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Franchising usa T he ma g a z ine for franchisees
FRANCHISING USA VOLUME 2, ISSUE 8, june 2014 president: Colin Bradbury. colin@cgbpublishing.com
Publisher: Vikki Bradbury. vikki@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Editorial team: Rob Swystun Stephen Kelly Gina Gill Lori Ann Comeau
Advertising Sales: advertising@cgbpublishing.com
Production: Samantha Klimecki. usaproduction@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: The Growth Coach
CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 778 426 2446 Editorial: 778 426 2446 www.franchisingusamagazine.com Proud member of the IFA:
SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org
from the
Publisher
“What ever you can do, or dream you can, do begin it. Boldness has genius, power and magic in it.” -Goethe Making the decision to start your own business can be an exciting decision and it can also be fraught with stresses and risks. In this issue of Franchising USA we cover a multitude of subjects from our experts who can help in all areas of Franchising. If you have decided that the road to entreprenurship is a risk worth taking then in our Bumper June issue (our biggest yet) you can read some great inspirational stories from Franchisees that have done just that. The ever popular Veterans Supplement has Unishippers on the cover and we look at a franchisee who decided that this was the right direction for him. Expert advice from Jim Mingey of Veterans Business Services and a warm welcome to Meghan Florkowski from V-Wise who offers educational programms for Veterans and Families. On the cover of our June issue we have The Growth Coach, President Nathan Owens who talks to Franchising USA about his belief and success of the Franchise.
Jeff Leffler from FranchiseGrade.com will guide you with tools on researching a franchise, Larry Katzen suggests you take a careful look at your business plan, we also have financial and legal advice, plus spotlight’s on great services like Kimco Realty and Cadence 9. George Knauff talks us through maximizing your Franchise Expo experience and you can make use of this by attending the IFE Expo in New York June 19th – 21st at The Javits Center NYC, NY. Franchising USA will be at the show offering free subscriptions to our digital version so come on by to booth # 1072 and say hi. Finally: We all love our pets and with this in mind Rob Swystun takes us through the many franchise systems in our PET AND FRANCHISING FEATURE which will show you how you can enjoy this area of Franchising. I am always amazed at the amount of information available to you the entrepreneur and I hope this issue of Franchising USA helps you in taking the next step. Good luck and happy reading Vikki Bradbury Publisher
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
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33
JUNE 2014
On the Cover 33 Feature Article
10 Cover Story
The Growth Coach Business and Sales Coaching
Pets and Franchising
88 Maximize Your Franchise Expo Experiance George Knauff, FranChoice
In Every Issue 06 Franchising News Announcements from the Industry 33 Feature Article Pets and Franchising 47 Veterans Supplement Unishippers
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40
16
f ra nchising usa
Contents
Focus 22 WOW 1 DAY PAINTING 86 Fresh Coat Painters
Spotlight on Service 44 Cadence 9 76 Kimco Realty
Franchising USA
f ra nchising usa
12 3 Tools Local Franchisees Can Use to Grow Their Business Andre Kay, Sociallybuzz
40
Expert Advice
16 Debunking the Myth of Working for a Startup Michelle Joseph, Peoplefoundry 18 Three Consistent and Critical Events That Will Convice you to Outsource Payroll Jeff Borschowa, Ceridian Small Business 28 Online Marketing Tools Adam Heitzman, HigherVisibility 38 No Assembly Required David Banfield, The Interface Financial Group
72 When Researching A Franchise Jeff Leffler, FranchiseGrade.com 82 Shark Tank Test Your Startup Scott Brandt, SurePayroll Inc.
72
40 International Expansion and The Legal Complexities Marwan Kojok, Baybridge Lawyers - Australia
88 Maximizing Your Franchise Expo Experiance George Knauff, FranChoice 92 Is Corporate Culture Part of Your Business Plan Larry Katzen, Businessman and Author
Franchisee in Action 30 Meineke
Franchisor in Depth 24 Cinnabon 78 Sherpa Kids
14 Wingstop 84 Hypoxi
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Franchise Profiles
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what’s new!
The Joint Corp. Reports Triple-Digit Growth With a staggering 31 million Americans suffering from back pain, it is no surprise that The Joint Corp., a chiropractic care franchisor, reported its total clinic revenue grew 150 percent in 2013. Franchise clinics referred to as The Joint… the chiropractic place®, had over one million patient visits, up 116 percent from 2012. The franchisor awarded 100 new franchise licenses last year, up 30 percent. Entrepreneur magazine ranks The Joint #32 on its list of the fastest growing franchises for 2014. David Orwasher, president and chief operating officer of The Joint Corp., said, “The market is demanding a healthcare model designed around patients’ needs rather than those of providers or insurers.” He added that the company’s approach to healthcare is “consumer friendly” in that no appointments are needed and consumers pay with cash or credit, bypassing insurance. “With the burgeoning
healthcare field now standing at nearly 18 percent of GDP in the U.S., this is the ideal time to become a franchise owner,” Orwasher said. At press time, the company had more than
200 clinics open and 450 in development in 30 states and is actively seeking additional franchisees. For more information visit: www.thejoint. com/franchise-opportunities.aspx
Renowned Franchise Attorney Harold L. Kestenbaum Relaunches Firm of, So You Want to Franchise Your Business, Kestenbaum’s vast background in franchise law provides clients the critical legal support they need to ensure their concept is protected. His legal advice is highly sought after in the franchise industry and beyond.
Harold L. Kestenbaum, an attorney specializing in franchise law for more than 35 years, is re-launching his own firm in a return to his entrepreneurial roots.
“I am very grateful for the long-lasting relationships I’ve formed in the franchising industry and among my wonderful peers at Gordon & Rees, a firm I’ll continue to have a referral relationship with during this new venture,” Kestenbaum said. “Moving forward, I’m truly excited to be leading my own firm again.”
An 11-time recipient of Franchise Times’ prestigious Legal Eagle award and author
Kestenbaum’s new firm, Harold L. Kestenbaum, PC, launches June 1.
Franchising USA
Throughout his prestigious career in franchise law, Kestenbaum has received numerous awards, including distinction in the category of Franchise Law by Best Lawyers in America®, International Who’s Who in Franchise Law by Who’sWhoLegal and New York Super Lawyer by Law & Politics magazine. Harold L. Kestenbaum authored So You Want to Franchise Your Business, the first book dedicated to entrepreneurs looking to franchise.
GreatAmericanDeals.com Kick-Starts Its National Franchise Program Great American Deals offers highly localized, neighborhood-based discounts at locally owned, hidden gem businesses – through a franchise opportunity that builds on individual owners’ deep knowledge of their neighborhoods and their audiences. The result is spectacular deal discounts from the area’s best businesses and services, and that leads to merchantpleasing repeat business.
Pat Sajak has never endorsed a product – until now. The nationally recognized TV host and investor is a partner and brand ambassador for Great American Deals, a new hyper-local online “daily deal” platform that’s delivering a twist on the $3.3 billion category.
To strengthen community commitment even further, Great American Deals has a “Give Back” component that donates a portion of every purchase to support local charities chosen by its customers. “So many aspects of the Great American
Deals concept have proven to be powerfully successful in our established test model, and I am a big believer,” said Sajak, who co-founded the company with long-time friend Michael Silber, a seasoned marketer. “It’s a win-win proposition for franchisees, customers, retailers and non-profits.” With no storefront, no inventory and no receivables, Great American Deals offers a path to excellent profit margins and a flexible workweek for entrepreneurial individuals with strong connections to their communities. For more information visit: franchising.greatamericandeals.com
DreamMaker Franchise Makes ‘Remodeling’ Magazine’s Top Remodeler List DreamMaker Bath & Kitchen of Bakersfield named to Remodeling magazine’s annual Big50 list DreamMaker Bath & Kitchen of Bakersfield has been named to “Remodeling” magazine’s Big50 list of businesses nationwide whose expertise, business practices, professionalism and success make them role models for the industry. DreamMaker was one of two California contractors to make the exclusive list.
Everett Gray, a state-licensed general
contractor since 1983, started the franchise with his wife in 2003. They credit the franchise’s systems for their success.
Theirs is the 13th DreamMaker franchise
named to the Big50 list since it was started in 1998.
The Grays are located at the Design
DreamMaker of Bakersfield owners Patty and Everett Gray have also been named the favorite contractor by readers of the Bakersfield Californian for two years in a row.
Center, 5880 District Blvd., Suite 19
“We are ecstatic and humbled by making the list,” says Patty Gray, Chief Stewarding Officer. “You can’t be a status-quo contractor and make the Big50. You have to stand apart.”
to bring its services to new markets.
(Open 9 a.m.-5 p.m., Monday through Friday, 661-837-1117).
DreamMaker, with 34 franchise locations
nationwide, is seeking more great partners For information, or to read an interview with Patty and Everett Gray, visit
www.dreammakerfranchise.com.
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what’s new! Cheng Cohen Attorneys Tapped for The Franchise Times Legal Eagles of 2014 All of the partners from Cheng Cohen, the franchise industry’s premier full service boutique law firm, have been included in The Franchise Times Legal Eagles of 2014. Partners Amy Cheng, Fredric A. Cohen and Michael R. Daigle appear in the 11th edition of The Franchise Times Legal Eagles, which recognizes superior attorneys who are nominated by their clients and peers, and who represent both franchisors and franchisees in litigation and transactional law. Cheng, widely published and a respected franchise legal industry expert, represents franchisors of all sizes on the structuring and operation of franchise programs through all phases of development. She sits on various committees and professional organizations including being a member of the International Franchise Association Women’s Franchise Committee.
Cohen, a sought after business and commercial litigator and trial lawyer for franchisors, has a long list of honors. With extensive experience in antitrust, intellectual property, and more, he represents clients in state and federal trial and appellate courts across the country as well as in alternative dispute resolution forums such as arbitration and mediation. Daigle specializes in transactional law
with an international focus. A respected legal trade industry editor and widely published, he presents at conferences all over the world and currently serves as Co-Chair of the International Commercial Transactions, Franchising and Distribution Committee of the ABA Section of International Law. For more information visit www.chengcohen.com.
Huddle House Answers Customer Cravings with Mouthwatering New Omelets Huddle House, the 400-unit, fullservice family restaurant franchise, is well-known for its wide variety of comfort foods, value pricing, Southern flavors, and most of all, its hearty breakfast selections. Customers across the country have made it loud and clear that they love the restaurant chain’s signature white pepper sausage gravy, fresh-whipped “Heavenly” omelets, or anything involving their crispy hash browns made with 100 percent Real Idaho Potatoes.
Franchising USA
As a result, paying close attention to the top-selling menu items, the culinary team at Huddle House is delivering all of these craveable tastes and textures in its newest limited-time offer, the “Stuffed and Smothered Omelet”. The new omelet, which comes in three different selections, combines smokehouse bacon or crispy chicken, cheeses and hash browns “stuffed” in a fresh-whipped fluffy omelet, then smothered in the brand’s signature sausage gravy. The omelets were introduced nationwide and will be available through mid-summer
2014, as Huddle House celebrates its 50th anniversary year. “Huddle House is a destination for a delicious, hearty breakfast, any time of day,” said CEO Michael Abt. “Because these omelets combine fan-favorite ingredients, flavors and textures, our guests are going to love them. It also allows us to introduce new people to Huddle House with a distinct and unique item not found at other breakfast chains.” For more information visit: www.huddlehouse.com
DR. G’S WEIGHT LOSS & WELLNESS CONTINUES TO EXPAND ITS U.S FOOTPRINT Company Launches New Physician’s Model To Gain Bigger Market Share Dr G’s Franchising Companies, LLC, the parent company of Dr. G’s Weight Loss & Wellness, a physician-supervised weight loss and wellness program, has announced the opening of six new clinics in the U.S., increasing its existing portfolio in the country to 27. Dr. G’s Franchising Companies also continues to expand the Dr. G’s Weight Loss & Wellness brand internationally with the recent launch of its first clinic in Mexico City. As part of its global expansion strategy, the company recently rolled out its Physician’s Model, which allows medical practitioners to add Dr. G’s Weight Loss & Wellness to their existing practice for a lower cost than the traditional model. In the new model, physicians pay a low franchise fee, which includes training, as well as a monthly fee for corporate support services. “We are confident this new model is going to help us gain a bigger share of the national and international markets,” added Russell.
“We see great potential in it as it addresses the demands and needs of a different type of franchisee -- one who is already established and successful, but is looking for an additional revenue stream.” For more information on Dr. G’s Weight Loss & Wellness, or for franchise ownership information, please call (800) DRG-8424 or visit www.drgsweightloss.com
ERA Real Estate Unveils New Brand Identity ERA Real Estate, a global real estate franchising leader, unveiled a new brand identity today at its 2014 International Business Conference in Los Angeles, California. The new look and feel is the culmination of a fiveyear strategic process that strengthened ERA Real Estate’s value proposition and drove growth for the brand. The new ERA logo is the visual representation of a comprehensive brand revitalization. It retains many of the positive equities of the previous brand mark, while infusing a modern and
contemporary element that is consistent with the brand today. This bolder look provides a new take on the brand’s iconic roof symbol and clearly communicates the upward direction and positive momentum of the brand. Unique graphics will help distinguish the brand in the local marketplace and a custom font makes yard signs easier to read. Together, these elements provide a strong visual association with ERA Real Estate and convey a new level of approachability to the brand.
in July 2014 with the launch of a national consumer and trade advertising campaign which will coincide with local roll-out at ERA brokerages across the country and the world.
ERA will activate its new look beginning
For more information, visit www.era.com
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cov er sto ry by Gina Gill
T he G row th C oach
The Growth Coach business and sales coaching a franchise on a mission to change the World! Our Mission: To significantly
transform lives and businesses around the world...One community at a time.
Our Vision: For the Growth Coach to become the industry defining global coaching brand built on helping people and businesses find their WHY! Feed your dreams, starve your fears®
Nathan Owens, President of The Growth Coach
Starting a business can be an uncertain endeavor that can lead to a lifetime of accomplishment. Increasing the chances of being successful can be a learned process through coaching with North America’s leading entrepreneur coaching company, The Growth Coach. Franchising USA
President Nathan Owens stands by this vision which is directly related to every function and technique that the Growth Coach practices. “At our core we are really in the mindset change and accountability business. We get entrepreneurs to think about their business like a CEO, instead of a technician. We focus mostly on that middle class piece and by doing so we have been able to take community by community and stabilize those collections,” explained Owens. “The vision is very straightforward but everything we do drives towards that. From our franchise relationship, to our owners, it directs how we behave in the corporate environment.” Middle class stabilization allows for incredible small and medium business growth - an idea created and perfected by founder and CEO Daniel Murphy. Established in 2003 by Murphy and
franchising chairman Gary Green, the company now has coaches coast to coast with 140 territories, representing 120 owners in the United States. The company has a trajectory of 400 territories by the end of 2015. “The reason we strive for 400 territories is because at that level, we cover enough of the U.S. to run national media to a point where we can start to educate the industry about coaching and what it is. Not necessarily selling a franchise but rather educating the masses in coaching and becoming that vision we are looking for long term,” said Owens. Before The Growth Coach success, Murphy was a Certified Public Accountant. He was working from a consultant standpoint but he knew there had to be more. He quit his job and started coaching with his first location in Cincinnati. “Everyone thought he was crazy. That took true grit to do that. Dan was the first true entrepreneur that had the guts to start this world changing system; he has perfected and leveraged group coaching,” explained Nate. The Growth Coach is now visible in 140 markets across the country. The company has founded its success by remaining dedicated to its vision of changing the mindset of their clients. They believe that in order to improve and grow, a business
“We strive to set the standard for passion, drive and grit as much as, if not more than, every owner we select to join our mission.” The Growth Coach has a 60 percent denial rate because they seek a specific type of franchise owner to partner with. They take the company mission and vision very seriously. Precisely, the perfect fit is someone who has identified with his or her ‘Why’ - Why do they want to do this? The answer cannot come from a business module – every successful franchise system has a business module – but rather each potential franchise owner has to resonate with the mission and vision of the company in some capacity. must also improve and grow. “If you look at the growth trajectory of it, we have always had this mindset change process and this strategic leadership process that is life changing and powerful, but we didn’t really figure out how to quantify that and give it to the world. In the last year or so we’ve been able to strip it down and position it better,” said Owens of The Growth Coach specific Strategic Mindset process. This lifestyle change is not immediate, but rather a year-long process. The company provides continuous support to achieve the specific goals. As a franchisor, The Growth Coach established a similar rapport with its owners. “We have an unbelievable franchiseefranchisor relationship. We don’t really consider ourselves a typical franchise system, even though the structure and level of support is one of the best franchise systems coaching has ever seen. We are a true partner in this business,” said Owens. “We strive to set the standard for passion, drive and grit as much as, if not more than, every owner we select to join our mission. That is our operational philosophy.” In order to be considered as a franchisee, there are particular processes to go through. There are three series of testing, ensuring the candidates coming in have an
extremely high success factor before even making it to the next step, followed by interviews with current owners as well as a fully vetted voting selection committee comprised of the executive team. After the testing, there is a corporate meeting day followed by a seven-hour meeting to compile the whole history of the possible franchisee. Current franchise owner’s feedback is provided to determine the approval or denial of the potential franchise owner. If approved, The Growth Coach has an unprecedented five-week training program that includes off-site instruction and in the field coaching. “After we have completed the selection process and a new territory is awarded, our goal is to ensure every detail of the new owner’s path to success is mapped out, 100 percent, day-by-day. We use what we believe to be a world class training and ramp up process, starting with Jump Start phase one, then Jump Start phase two. We spend eight and half days in Cincinnati. Then a week in the field perfecting the ‘Ninety Days Secret to Success’. Franchisees are assigned an operational coach who breaks down each day of that week,” described Owens. “Afterwards, a dedicated operations coach, dedicated onboarding coach, and marketing coach, work through this ninety day plan, day-byday with each new franchise owner.”
Owens said we truly saw the need for The Growth Coach when we expanded our coaching to small business owners in Ecuador. We were amazed how the stabilization of small business owners helped change the local community of Quito. ‘We said how do we prove this model and who do we want to be?’ We started to identify that this is a middle class stabilization product, service and company,” recalls Owens. “We went to Ecuador, we started opening up units. We returned after about a year and a half later to have an international conference. We were talking about our vision and mission and where we would like to go globally, people started to cry and I didn’t understand. It’s because the people of Ecuador attributes the stabilization of the small business of this community to The Growth Coach.” The company not only brought services to small business owners but the ability to pass their businesses on to their children. It was a life changing experience for families. That type of life altering change is the perfect example of why The Growth Coach is an essential franchise. For more information visit: www.thegrowthcoach.com Click here for your FREE Business Coaching E-book Franchise Opportunity click here
Franchising USA
cov er sto ry by Gina Gill
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ex per t advice
Andre Kay, CEO & Chief Marketing Officer, Sociallbuzz
3 Tools
Local Fr anchisees Can Use to Grow Their Business Owning a local franchise business is no simple task. Even with support from your franchisor, you’re still required to manage operations, staff, budget, marketing and any unexpected expenses and issues.
or any email client, you will first need to develop a database of customers. Communicating with regular customers will help you to increase revenue without the cost of acquisition. To start collecting your customer’s email address, you will need to offer something of value. • Create and run monthly promotions through your social channels (e.g. Join our emailing list for a chance to win a $100 Gift Certificate)
The majority of small business owners wear multiple hats when it comes to running their local business. Business owners are always searching for an easy and affordable way to manage customers, drive new business and increase sales.
emails, use the following examples to communicate with your customers to offer value: • Send birthday, anniversary and special day (Mother’s Day, etc) emails • Send exclusive coupons and discounts • Send relevant local and community involvement news • Do not spam their email inbox
2) Sociallybuzz App (http://sociallybuzz.com/app) Managing all your social channels and online reviews can feel like a full time job. But not moderating them effectively and consistently can instantly turn good customer service into a bad customer experience and having returning customers to going out of business. Franchisees can use the Sociallybuzz app to easily manage their social channels and online reviews in one place, on one mobile dashboard.
Here are three tools local franchisees can use to attract and keep new customers to grow their business:
1) Constant Contact Email marketing is one of the most powerful marketing tools available for developing customer and client relationships. Constant Contact offers effective and professional email marketing for a small monthly fee, without set-up or support costs.
• Create and print small cards for customers to fill out in-store (e.g. Complete this card for a chance to win a free dinner, product or service)
Having an easy, affordable and convenient way to manage all your social channels and online reputation can save you lots of time, while helping you build a solid line of communication between you and your customers.
• If you offer online ordering, ask customers for permission to communicate with them via email.
• Manage and moderate all your channels from one mobile dashboard anytime, anywhere.
But before you can use Constant Contact
Now that you’ve started collecting
• Anticipate a busy day or busy week?
(http://www.constantcontact.com/)
Franchising USA
“It is easier and cheaper to retain an existing customer than acquire a new customer.”
Andre Kay
solution that takes care of everything. Once you join the FiveStars network, they will build a customized loyalty program that is optimized for your business. You maintain full control. • Sign up all your customers right from your POS in seconds. • Collect customer information Schedule your messages in advance to post at a convenient time. • Quickly receive notifications of posts or customer reviews, comments and complaints. • Respond promptly to reviews, customer complaints, praises and comments.
3) FiveStars (http://www.fivestars.com/businesses/) Loyalty programs reward consumers for sticking with your business. FiveStars gives businesses everything they need to acquire, grow, and retain their customer base. It has an incredibly simple loyalty
• Keep in touch with your customers via targeted messages In conclusion, it is easier and cheaper to retain an existing customer than acquire a new customer. Many business owners do not have the time, resources or team to help with growing their business. With the three tools mentioned above, you should be able to get a better handle on your business marketing, management and loyalty initiatives. Andre Kay is CEO and chief marketing officer of Sociallybuzz, which exists to help franchise owners grow their business using social media. By helping them reach relevant customers, build customer loyalty, mange reputation and increase revenue. We protect relationship with their customer, create effective campaigns, manage their social channels and online reputation 24/7. Read the company’s blog (http:// sociallybuzz.wordpress.com/), follow it on Twitter and “like” its Facebook page.
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ex per t advice
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prof ile
W ingstop
WINGSTOP
The Wing Experts With 10 consecutive years of same store sales increases and more than 635 locations open across the United States, Mexico, Russia, Singapore and the Philippines, with locations coming soon to the United Arab Emirates, Wingstop is one of the fastest growing franchises for single-unit and multiunit operators. Founded in 1994 and headquartered in Dallas, Texas, “The Wing Experts” have been saucing and tossing fresh, made-toorder award-winning wings for over two decades. The Wingstop menu features
Franchising USA
classic and boneless wings with 10 bold, distinctive flavors including Original Hot, Cajun, Atomic, Mild, Teriyaki, Lemon Pepper, Hawaiian, Garlic Parmesan, Hickory Smoked BBQ and Louisiana Rub. Wingstop’s wings are always cooked to order, sauced and tossed and served with a variety of house-made sides including Wingstop’s seasoned fries. Whether customers prefer Classic Wings, Boneless Wings or Boneless Strips, Wingstop is sure to have a Combo to fit anyone’s taste. By maintaining a sole focus on fresh, cooked-to-order wings and house-made side dishes, Wingstop is able to offer a limited, high-quality menu with simple operations that appeal to experienced restaurateurs and entrepreneurs. Due to this simple operating platform, the system is 95 percent franchise owned and operated. • No microwaves or heat lamps • Average wait time is 10-15 minutes • Typical Wingstop seats 30-50 guests
• More than 635 locations open in 35 states
• More than 85 restaurants to open this year • Fast-casual is the fastest growing segment in the restaurant industry Wingstop was named a Top 10 Best Franchise Deal by QSR magazine, and has been voted “best wings” in markets across the country. From national taste tests to industry rankings, Wingstop continues to win rave reviews. Recognized by Technomic as one of the 10 fastestgrowing concepts in the United States, we are “The Wing Experts”. Wingstop is owned by affiliates of Roark Capital Group, an Atlanta-based private equity firm that specializes in business and consumer service companies with attractive growth prospects and revenues ranging from $20 million to over $3 billion. For more information visit: www.wingstop.com/own
OKED TO RDER
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10+YEARS SAME STORE SALES INCREASE TOP 5 FASTEST GROWING
LOW COST initial investment &
Over
SIMPLE operations & attractive
CONCEPTS IN THE U.S.
635 RESTAURANTS
Focused high-quality menu
LOW OPERATING costs
unit economics
Focused, high-quality menu of made-to-order classic and boneless wings
-a-wingstop/why-wingstop/
STRONG AUV OF $974,000 *
635+ STORES 85 PROJECTED NEW locations TO open in 2014
COOKED TO ORDER
FLEXIBLE footprint to
accommodate any venue
EASY executed, craveable
CLASSIC BONE-IN AND BONELESS WINGS
menu for all day parts
CUSTOM-FIT Square footage ranges from 550 to 3,000
70% of store sales are carryout
IMMEDIATE FRANCHISES AVAILABLE!
WINGSTOP.COM | 972.686.6500 *Figure reflects the average annual net sales for all Wingstop Restaurants (23 corporate and 458 franchise) in the system that were open during the entire period from January 1, 2012 through December 29, 2012, as published in Item 19 of our April 2013 Franchise Disclosure Document. Of the 458 franchised restaurants, 185 (40%) had higher net sales during the reported period. The financial performance representation contained in Item 19 of our April 2013 Franchise Disclosure Document also includes average annual net sales information (1) separately for all franchised Wingstop Restaurants, and (2) separately for all company-owned Wingstop Restaurants, in operation in the United States during the referenced period. A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk. © 2014 Wingstop Restaurants Inc.
Franchising USA
ex per t advice
Michelle Joseph, Founder and CEO, PeopleFoundry Inc
Debunking the My Working for a Sta There is a fear of working for a startup because of the inherent risks and unforeseen future of the company. It is no secret that early stage companies often have lower pay, less job security and more turnover than larger corporations. Yet, despite the skepticism of being ‘risky,’ there are aspects to study and many positives to be considered. Michelle Joseph, CEO of PeopleFoundry, delves into the misconceptions of working for startups, and sheds light on the benefits of doing so.
Franchising USA
The Role You Will Play Often times when joining an established company, there will be a pre-designed position with set tasks. While startup companies will also have specific projects to be done, they will more likely give milestones to achieve in a given time period. One of the benefits of a startup is this inherent opportunity to create your own destiny and shape your position within the company. There are many openings to excel in areas you might not have otherwise had an opportunity to be exposed to in a more corporate setting. To be successful at startups and newer companies, versatility is required. By tackling a wide range of tasks and contributing to other roles, one can really
“One of the best ways to decipher the future is to look into the past.” apart of prior to this fresh start. While not a guarantee for success, there is a positive correlation that a strong past in a particular industry will lead to a bright future. The simple act of doing this research can set one’s mind at ease and give confidence that this is the right company for you.
Michelle Joseph
yth of artup expand their boundaries and abilities, which every company loves to see. Be sure to clarify what roles you are responsible for as well as identify opportunities to grow with the company. By doing this, the employee will become an invaluable asset to the company and also add strength and experience to their own tool belt.
Established Leaders One of the best ways to decipher the future is to look into the past. Since a startup has little past, examine the leaders and founders. If their track record(s) shows past successes, then you can restore your confidence. If this is their first venture, ensure the goals and aspirations are realistic and align with your own. Also, bear in mind the field that the leaders were
Furthermore, the opportunity to work side by side with the C-Level Executive of a company when you first step into a job can be extremely valuable. This is an opportunity that is unique to a startup or small business and can play a large role in success at not only this company but also in future endeavors as well. There is a lot to be said for working alongside a leader in a flatter organization rather than climbing the corporate ladder.
Turnover Rate It’s safe to assume that an established company is moving in the right direction with little to no turnover rate. With startups it is a bit different. Not everyone has the pioneering spirit that startups require yet the idea of joining them does look attractive. After some time passes, there are people who learn that a nonstructured environment and burning the midnight oil is just not the right fit for them. There is an extreme to watch out for with startups that have high turnover rates. On the other hand, if the retention rate of employees is high then the culture and the growth of the company are going in the right direction. This high retention and strong culture can often be positively correlated to its employees having bought in to the culture and company values. Being fully invested in a company creates a drive to succeed that is not seen when there is an indifference to industry goals. One of the knocks on working for a new company is that longer hours and a larger workload are expected – this is a given! However, when
one is fully invested in the vision and goal that the founders have created, the work is rewarding and there is a goal that everyone is working together to achieve that will be very fulfilling.
Room to Grow Startups offer the opportunity for every employee to see their impact on the company’s growth. Individual contributions to a business are more transparent in startup environments; there is nowhere to hide and teams are run lean. With this natural positioning, it is only natural for those who positively contribute to be rewarded for it – promotions and future leadership opportunities can likely come at a faster pace and more readily in startups. Organically becoming a leader at a business you have grown yourself - looks good on everything you do.
About PeopleFoundry: PeopleFoundry’s recruitment process is unparalleled. Their dedication to understanding clients’ unique needs allows PeopleFoundry to actively work with the best candidates to help build a winning team. From sales to technology to everything in between, PeopleFoundry carefully matches talented professionals to the priorities and core values of each client. PeopleFoundry is not your typical suit and tie. For more information: Website: www.peoplefoundry.com
About Michelle Joseph: Michelle is the Founder and CEO of PeopleFoundry Inc. She is an expert in Human Resources and talent acquisition. Michelle works with Chicago growth companies to build top-tier teams by forming partnerships to find the best people the businesses seek. Michelle has a strong voice in the local tech space, regularly speaking at engagements and presentations at 1871. Click this link to learn more about Michelle in an interview with Bootstrapping America.
Franchising USA
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Jeff Borschowa; Accountant and Ceridian Small Business Payroll Consultant
Three Consistent and Critical Events that Will Convince You to Outsource Payroll As an accountant, I have heard these and many other excuses for not using an external payroll service from my clients. Not surprisingly, these same clients ultimately came to me with issues, desperate for my assistance with solving problems after they arise. I see three events repeatedly that lead small businesses and franchises to outsource their payroll. In order of stress levels that each cause for the small business or franchise owner, the critical events are:
1. Payroll audits Jeff Borschowa
It’s just payroll, right? How hard can it really be? Doesn’t my accounting software calculate payroll for me? I have a franchise; why would I pay someone to administer payroll? Franchising USA
2. Payroll errors 3. Legislative changes I will first explore each of these areas in more depth and then discuss the main advantages of outsourcing payroll to a provider like Ceridian.
Payroll Audits Long ago, I lost count of all the payroll issues that I have been called in to fix after the fact. I once took over an accounting practice that took a fairly liberal approach to payroll and legal requirements. I
was unexpectedly faced with several concurrent payroll audits within a month of taking over the practice. I can tell you with certainty that the cost and stress of payroll audits outweighed any perceived savings by doing payroll in-house. The retired accountant could have saved himself and his clients a lot of stress if he had simply used a professional and reliable external source for his clients and their payroll needs. From the client perspective, they were hurt because they felt that their accountant had betrayed them - had he not already retired, they would have left him because of the payroll audits.
Payroll Errors - the Hidden Costs of Doing Payroll Yourself Calculation errors can have hidden costs. Have you considered the cost of the following? • Late filing penalties • Interest charges • Disgruntled employees • Added stress dealing with unresolved issues
THE ULTIMATE FRANCHISE! Page 19
SAMPLE REVENUE & INCOME* $2,093,280
GROSS SALES
$821,181
OPERATING INCOME
39.23%
NET MARGIN
ASSET REQUIREMENTS $1,000,000
NET WORTH
$500,000
LIQUID ASSETS
ROCKIN' JUMP IS THE ULTIMATE FRANCHISE OPPORTUNITY! ROCKIN’ JUMP PARKS OFFER CHILDREN AND ADULTS A SAFE. CLEAN. FUN ® VENUE TO PLAY, MEET UP WITH FRIENDS, AND HOST EXTRAORDINARY GROUP EVENTS. ROCKIN' JUMP’S TRADEMARKED SAFETY PROGRAM, UNIQUE OPERATIONAL PLATFORM AND WELL ORGANIZED TRAINING & SUPPORT FEATURES REMOVE THE GUESS WORK AND ASSIST YOU IN YOUR PATH TO SUCCESS.
FOR MORE INFORMATION VISIT: FRANCHISE.ROCKINJUMP.COM
PHONE: 415.225.6037 EMAIL: AARON@ROCKINJUMP.COM
* Figures obtained from our Dublin, California location as published in Items 7 and 19 of our 2014 Franchise Disclosure Document (FDD). For complete performance of all Rockin’Jump locations please see item 19 of our FDD. A new franchisee's results may differ from the represented performance. There is no assurance that you will do as well, and you must accept that risk. ** This advertisement is not an offering. An offering can only be made by prospectus filed first with the department of law of the state of New York. Such filing does not constitute approval by the department of law.
SAFE. CLEAN. FUN.® FOR ALL AGES! Franchising USA
ex per t advice
Jeff Borschowa; Accountant and Ceridian Small Business Payroll Consultant
“Payroll audits, errors, or missed legislative changes can cause significant stress and potentially significant costs to franchises.” • Staff time correcting payroll errors and dealing with auditors • Management time deferred dealing with the above • Frequent errors may lead to your business being flagged for audit scrutiny You may or may not have had to deal with unhappy employees in the past due to payroll issues. If you have, you know that payroll is a very personal and often touchy subject for employees. I have seen these payroll issues firsthand with two of my former employers. In one case, the internal bookkeeper wanted to reduce costs, so she did not renew the company’s payroll software. Instead, she manually calculated payroll. Unfortunately, she was not fully aware of the rules surrounding deductions and she withheld approximately five percent too much from each employee’s paycheck. The errors were seemingly insignificant and management decided to adjust the error on a subsequent paycheck. The error and the decision to ignore it cost the company dearly; employees were understandably upset and from that point onward, very militant toward payroll calculations - no further errors were tolerated. In a second instance, I was working for a smaller company. The person responsible for payroll was on vacation and the owner-manager decided to wait until her return to pay the employees; it was only a three-day delay, after all. Unfortunately, this company had employees who had pre-scheduled payments that were set to come out of their accounts and the delay caused significant inconvenience for the employees. The employer had to conduct major damage control and pay additional bank charges incurred by the employees. This slight delay caused unnecessary
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headaches for employees and they made sure the employer knew exactly how inconvenienced they felt.
Legislative Changes Change is the one constant in today’s business world. It is inevitable that legislative changes will impact your franchise, whether you know about them or not. Labor laws may not change as frequently as others, but the impact of missing a change can be costly. For example, government subsidies may be missed or grant programs overlooked. Ignorance or lack of awareness are not acceptable reasons for exceptions or forgiveness. The inevitable advancement of technology and legislation will require great diligence on an employer’s part going forward. Do you have the time to attend training or sit through updates? If not, you may be subjecting your business to missed opportunities, costly compliance errors, and even potential legal liability for errors and omissions.
Advantages to Using an Outside Payroll Firm As discussed, payroll audits, errors, or missed legislative changes can cause significant stress and potentially significant costs to franchises. The cost of hiring an in-house person to handle payroll and human resources can be too large for many franchises to bear. The following are some of the benefits that you will see if you hire an external payroll service provider, such as Ceridian:
• Filing tax forms without stress • Flexible reporting solutions for employers
• Self-serve access to pay stubs and other reports for employees
• Administration of benefits beyond the paycheck
• Calculation and tracking of vacation pay I have encountered payroll errors, payroll audits and legislative changes throughout my career and ultimately, they always
lead to employers bringing in an external service provider to manage their small
business payroll. Why not save yourself
the trouble of the experiences above, learn from the mistakes of others and leave
payroll to the experts? As a franchise
owner or manager, you should focus on
what you do best – running your business. To learn how a fully outsourced payroll solution can benefit your clients and
business, review Ceridian’s whitepaper called Business Process Outsourcing Payroll.
• Regular issuance of paychecks – even if key personnel are on vacation
Jeff Borschowa is an accountant and
• Ability to offer direct deposit to employees
consultant
• Timely payment of source deductions
www.ceridiansmallbusiness.ca
Ceridian Small Business Payroll For more information visit:
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IT’S “WOW” OR NEVER
CRAIG MERRILLS Washington DC Franchise Partner
Don’t miss your opportunity to be a part of America’s next $100 million brand. By leveraging the success of their sister company 1-800-GOT-JUNK?, WOW 1 DAY PAINTING is revolutionizing the home improvement space, bringing innovation and professionalism to an age old industry.
WOW1DAY.COM | 1-888-WOW-1DAY Franchising USA
focus
WOW 1 DAY PA I N T I NG
Creating WOW: the story of WOW 1 DAY PAINTING’s rebrand
In 2010 when Brian Scudamore, Founder & CEO of the successful, global franchise, 1-800GOT-JUNK?, decided to launch his second brand, a unique painting concept called 1-888-WOW-1DAY! Painting, he could never imagine he’d be ordering a complete rebrand just three years later. He had a fantastic concept - your home or business painted in a single day. It was a unique, disruptive idea in the painting industry which had never really seen any innovation. From the start, 1-888-WOW1DAY! Painting had the look and feel of 1-800-GOT-JUNK? – a brand focused on professionalism and exceptional customer service. The company began franchising in 2011 and grew quickly. In their first year, they had grown to 12 franchises and $1.9 million in revenue, four times the growth that 1-800-GOT-JUNK? had experienced in its first year. So what went wrong? It was at the mid-point of 2012 when Scudamore first sensed there was a problem with the branding of 1-888WOW-1DAY! Painting. “People weren’t as enamoured with the brand as they
Franchising USA
were with 1-800-GOT-JUNK?,” says Scudamore. “We were trying to take an ordinary service - the experience of house painting - and make it exceptional. While our concept was exceptional, the look and feel of our brand was not.” Over time, the feedback that Scudamore received from customers, friends and family, and business associates was that the brand didn’t stand out aesthetically from other painting companies. The orange and blue colors were reminiscent of a college football team. Furthermore, because of the collegiate feel of the brand, people didn’t take the company’s one-day promise – the entire theme of the brand – seriously. Could this company really paint a house in a day? “I’ve learned that if you want to be successful in the home-service industry, you need to help people find an emotional connection to your brand. That just wasn’t happening with 1-888-WOW1DAY! Painting,” explains Scudamore. Scudamore knew that a full rebranding was in order but he also realized he couldn’t afford to make another mistake and so he began to make minor changes to the brand. First to go was the name, 1-888-WOW-1DAY! Painting. It was clunky and hard to say; very rarely would anyone get it right according to Scudamore and almost always it was misspelled or mispronounced. So the decision was made to simplify the name to WOW 1 DAY PAINTING. By early 2013, Scudamore had reached
out to a number of top design agencies and rebrand experts to garner feedback on the current brand and cultivate ideas for what a truly ground-breaking painting brand could look like. He created an advisory panel comprised of the top WOW 1 DAY PAINTING Franchise Partners and flew them up to Vancouver to discuss potential changes. The collaboration included presenting the advisory panel with the newly-developed designs from the agencies hired. And so the work had begun. After the meeting with the Franchise Partner advisory panel, Scudamore made the decision to work with a local agency that had proven their strong talent with brands such as Lululemon. Over the next several weeks Scudamore went back and forth with Freebird, receiving 16 different logo ideas. He sought feedback on the logos from every corner – from his advisory council to colleagues, friends, family and even customers. Eventually all of the hard work resulted in success when Scudamore landed on a design that people could relate to and more importantly, connect with emotionally - a green circle with WOW written on the inside and a smile just below. “The logo looked like it was smiling at you and people would tell me that they couldn’t help but smile back!,” says Scudamore. “We chose green because it represented freshness and revitalization which is exactly what we provide to people
“The logo looked like it was smiling at you and people would tell me that they couldn’t help but smile back!”
with our service. When I showed people the new logo, they would actually say WOW! And I knew that we had found the right look.” The grand unveiling of the new brand happened at the WOW 1 DAY PAINTING conference in October of 2013. Brian Scudamore presented the new branding to the entire audience of WOW 1 DAY PAINTING Franchise Partners and the response was overwhelmingly positive. Franchise Partners immediately connected with the new brand, seeing it as a massive improvement over the original. Several Franchise Partners approached Scudamore after the presentation asking how quickly they could convert their franchise to the new look. The actual transition period took place over a few months following the October presentation, starting with the website which launched in January of this year. Franchises then began the process of ordering new marketing materials, uniforms and vehicle wraps. To help with transition costs, incentives were provided to those franchises that decided to make the changes immediately. The ultimate reason for WOW 1 DAY PAINTING’s brand change was to better position the company for long-term success. That barometer may take time to measure, but one early indicator – revenue results - indicates the brand change has had a significant impact. Year to date, WOW 1 DAY PAINTING has generated $1.6 million in system-wide revenue, 60 percent higher than the same period last year. “It was an arduous and costly process to get to where we are today. But it was worth it because we got it right,” says Scudamore. “Brands are all about personality and that’s exactly what WOW 1 DAY PAINTING has now. We are a fun, quirky, happy and trustworthy company that our customers are connecting to. People have always loved the concept, now they love the brand and the future is looking very positive for WOW 1 DAY PAINTING.” For more information visit: www.wow1day.com
Franchising USA
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Cinnabon
Life Needs More F Brand Equity Brings Sweeter Rewards
for long. Over a generation of franchising development built on respect and trust has brought layers of growth at home and around the world.
The sweetness of their success is like a frosted layer.
It’s been almost thirty years since Rich and Greg Komen created ‘the world’s best cinnamon roll’. After tracking down the most flavorful cinnamon they made their own signaturized Makara Cinnamon. Once they perfected their recipe, they opened their first Cinnabon Bakery in Seattle, WA back in 1985. The windy city was able to savor the bounty of the best cinnamon rolls, however the rest of the world was waiting – but not
Franchising USA
Today, headquartered in Atlanta, GA, Cinnabon Inc., has 1200 locations in 57 countries across the world. The Komen’s dream of creating the world’s best cinnamon roll has been shared, enjoyed and served warm on kitchen tables in homes around the globe. They like to call it ‘making wonderful memories with family and guests’. It’s true. As consumers of Cinnabon products, they offer a heavenly experience. Regardless of its calorie packed goodness or sweetness, we will que in line to savor their famous Classic Roll, or be tempted by their Caramel Pecanbon. We can even bring them home, as most of us do in the CinnaPacks or Cinnabon Sticks. To tantalize the consumer with more choice, they have introduced speciality beverages such as Mochalatta Chill and various flavours of Chillattas. And that’s not all. “We’re building the world’s greatest indulgent food brand,” says Kat Cole, President, Cinnabon Inc. “It is about leveraging the brand for market
and product expansion. It is about opening new franchises, selling consumer package goods and licensing Cinnabon products to other restaurants,” she adds. It is about market segmentation, market expansion, product differentiation and brand. They have invested in their brand. They understand the importance of loyalty, reputation and image in doing business.
Frosting “The Komen’s dream of creating the world’s best cinnamon roll has been shared, enjoyed and served warm on kitchen tables in homes around the globe.” Above all, they support their staff, guests, partners and communities in which they share their belief that life needs more frosting. It is about sharing happy moments built on respect and trust. Those interested in joining the Cinnabon Inc., franchise family need to appreciate the growth strategy Cole is undertaking, and most of all, have the investment to operate and the ability to manage people while serving customers with a
smile. Franchisees around the world have a faultless system for operations, service, and of course, the resources both capital and leadership with a world-wide brand recognition that is priceless – and a growing consumer demand for their speciality and differentiated products. China and Brazil have launched their first bakeries with more to come over the next five years.
“It is beyond the immediate
consumption,” says Cole.
Global retail sales of Cinnabon products is a $1 billion business. Cole has
helped Cinnabon move its business
from the world malls and align business
relationships, deals and licensing – adding more frosting to the business, market,
and product development while offering
Franchising USA
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Cinnabon
“It is sweet! It is good! It makes us feel good! It makes us feel happy! Their brand equity and growth makes it all the more sweeter for those exploring new growth opportunities.”
over 72 products in the grocery aisles. “It is beyond differentiation. It is product innovation. It is about offering choice and product availability through multi consumer channels,” adds Cole. The Cinnabon Team is dedicated to diversifying Cinnabon products and moving their business from a mall bakery to restaurants through licensing arrangements – Taco Bell Delights golden bite size pastries or drive in mini rolls at Burger King. “We are becoming one of the world’s greatest food brands. It is continuing to grow the franchise business globally and using that as the driver for brand equity”,
Franchising USA
says Cole. She adds, “it is what people know and love.” Then there’s leveraging the brand to develop products in the packaged product lines and foster partnerships with respected and recognizable brands in the marketplace. Cinnabon Inc., can boast it has 72 products in consumer packaged goods in a grocery near you. There are the Pillsbury cinnamon rolls in which each can is made with Cinnabon Makara Cinnamon. Then, there’s the Kellogg’s Cinnabon cereal. Even coffee lovers can have a taste of Cinnabon. International Delight offers a Cinnabon creamer. Cinnabon Inc., says life needs more frosting. Consumers, customers or guests
know the experience Cinnabon products offers us. It is sweet! It is good! It makes us feel good! It makes us feel happy! Their brand equity and growth makes it all the more sweeter for those exploring new growth opportunities. This is one to grab hold, savor, and leverage using experience, skill, leadership, and a brand we all know. Consider there are over 1.4 billion people in China and almost 200 million people in Brazil waiting to savor Cinnabon products. We want to build happy memories. The potential is endless. It is to promote that life needs more frosting, and enjoying the sweet rewards it brings. For more information visit: www.www.cinnabon.com
Want to be in business for yourself but not by yourself? Have a strong work ethic and desire to succeed? If so, investing in a franchise may be the perfect opportunity you’ve been searching for — Our low-cost franchises are available both in the U.S. and internationally. HOME-BASED BUSINESS
FINANCING AVAILABLE
Work from the comfort of your home on a flexible schedule (part-time or full-time) of your choosing.
Don’t have quite enough cash to purchase your own franchise? We’ll help you out — we’re that confident in your success.
LOW START-UP & OVERHEAD COSTS
EXPERIENCE YOU CAN COUNT ON
Our brands are personal service-based businesses — you will not have to invest significant capital in inventory or location. And our franchise costs are surprisingly affordable.
Investing in our executive team puts decades of franchising experience in your corner.
NO EXPERIENCE NECESSARY You do not need prior experience in the franchise field you choose. Our thorough ongoing training programs will teach you everything you need to open and run a successful business.
Take the first step today towards enjoying the benefits offered by each of our five franchise opportunities:
WORK ON YOUR BUSINESS, NOT IN YOUR BUSINESS
Home Helpers, The Growth Coach, Fresh Coat, Caring Transitions and TruBlue House Care have low entry costs and low monthly overhead so you can build your business and realize profits faster than with most other franchise systems.
You won’t be doing the work yourself in our service-based franchises. We’ll teach you how to hire, train, and manage the best employees so you can grow a business that works for you, rather than you working for your business.
PROVEN MARKETING & OPERATIONS SYSTEMS Get access to extensive lead generation programs and coordinated marketing campaigns, including brochures, trade show exhibits, direct mailers, presentation materials, uniforms, promotional items, radio and television advertising, signs, and a powerful online presence — not to mention the power of nationallyrecognized brands. We’ve worked out all the start-up kinks for you so you can step into the business, “turn the key,” and watch it run.
MULTIPLE PROFIT CENTERS IN RECESSIONRESISTANT, LUCRATIVE MARKETS Each one of our service-based brands has been tested and strategically designed to take advantage of high-growth, lucrative markets. Most of them focus primarily on the booming senior market. All of them have been developed to tap into multiple profit centers.
OUTSTANDING TRAINING & SUPPORT You’re not alone in making critical decisions. Our corporate team is with you every step of the way. You also have access to other franchisees across the nation, who have experienced the same challenges you may face and have solutions.
Our goal is to help you become and stay successful. We have the experience, the national brand recognition, the innovative marketing and public relations programs, and many other tools to help you win and keep clients. Our systems are proven and our training, support, and continual guidance are unparalleled. So whether you’re starting a new venture or transitioning from another career, we’re there to help you every step of the way.
Be a little uncomfortable. It’s necessary for you to step out of your comfort zone to build wealth. Once you have a plan, a solid business and a proven system, the rest is up to you.” – Gary Green, Founder & CEO, Strategic Franchising Systems, Inc.
Interested in a franchise opportunity email bboecker@franchisesupport.net
www.strategicfranchising.com
ex per t advice
Adam Heitzman, Co-founder & Managing Partner at HigherVisibility
Online Marketing Tools Created Specifically to Help Franchises Succeed It’s no secret that there are an overwhelming number of marketing tools out there for every aspect of the marketing process, so it can take a while to figure out which tools you want to use and how you want to use them.
Franchising USA
“What many company owners don’t realize, is that there are tools out there designed specifically with franchise tasks in mind.” However, this doesn’t mean that you should stick with one set of tools and never bother to check out others. New online resources are being created every day, so you should constantly be making sure you’re using the best you can to propel your company forward. For franchise companies, this means finding tools designed for your type of business.
Top Online Marketing Tools that Cater to Franchises When it comes to franchise businesses, most of your basic SEO and marketing tools will work, but what many company owners don’t realize, is that there are tools out there designed specifically with franchise tasks in mind. After all, franchise companies oftentimes need slightly different data or go through slightly different processes than traditional companies, so you want to use a tool that caters to that. Below are some of the online marketing tools, in all different categories, that have options that work incredibly well for franchises: 1. Spredfast. Great for social media management. This tool has everything to do with managing social media. As a franchise you may have more than one account for each location or want to only post special offers to certain audiences. Spredfast helps you manage all of these different factors to make sure you’re posting the most relevant information consistently and frequently. You can add
as many social profiles as you’d like, and the best part is that you can add team members and give them permission to do certain tasks only. This is great when you have several different managers you’re working with. 2. Google AdWords Location Extensions. Great for paid efforts. Location extensions are absolutely necessary when it comes to franchise paid marketing because you likely have many different locations. You want to make sure your ads are relevant to the right audience and location extensions allows you to do that. It’s also an excellent way for a searcher to see that your business can offer whatever it is he/ she needs locally. 3. Google Analytics. Ideal for analytics traffic and SEO metrics. By now most companies know that Google Analytics is a must-use tool for all types of businesses. The benefits this resource can offer seem never-ending, so visit Google Analytics to learn more about all of the data you can gain from this tool and how to make it work for you. For franchises specifically, use the Rollup Reporting feature to help see your entire franchise network. You can also offer franchises access to you Google Analytics account to their particular location (so their own individual Google Analytics reports) without having to give access to the entire tool in general. 4. Mavenlink. Great for organization. This tool helps you manage different tasks and track projects. You can easily share different files and give specified access to all of your franchise managers
Adam Heitzman
so that you can all collaborate on your own time. You can assign different tasks to make sure that everything gets done across the board. I personally think this tool is excellent for someone at the national level to manage. It gives an excellent overview of everything that’s going on with every franchise—what more could you want? 5. Basecamp. Content marketing made easy. Any type of content marketing is going to be difficult when you own a franchise. Basecamp could potentially make things more complicated for franchises if used as a way to review all content from every single website, so make sure to use it as more of an organizational tool. This tool can also help you give assignments and share files, so if that is a content strategy that has been working for you in the past then this tool might be a great way to keep all of your content needs and efforts in one place. As you can see, a lot of the tools listed above can accommodate a franchise business. Adam Heitzman is the Co-Founder and Managing Partner at HigherVisibility, a nationally recognized SEO firm that offers a full range of internet marketing services. For more information: www.highervisibility.com
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fr anchisee in acti o n by S tephen Kell y
M eineke
franchise a little smarter
with Meineke What began as a single storefront in Houston, Texas in 1972 has since grown into an international franchise based automotive repair company with over 970 locations. Meineke Car Centers have experienced continuous growth in the US, Canada and Mexico with recent expansion to Saudi Arabia, South Korea and China. Services have broadened dramatically from its inception as muffler install and repair.
Franchising USA
Meineke Car Care Centers are now modelled on a one-stop shop approach which include oil and lube, brake service, AC, tires, steering and suspension. Meineke was purchased by British multinational GKN in 1983 and moved its corporate headquarters to Charlotte, North Carolina. In 2003 the company was privatized and became part of Driven Brands, a diversified family of automotive companies which include MAACO North America’s Body Shop, Econo Lube ‘N Tune, Drive N Style and Merlins. Commercial success has been mirrored by notoriety in the franchise world as Meineke was the first automotive franchisor to receive the Fair Franchising
Seal in 2001 as awarded by The American Association of Franchisees and Dealers. 35 percent of Meineke franchisees own multiple locations and 90 percent of the overall franchise footprint is managed by an owner/operator. Ryan Barclay falls firmly into this category. Ryan Barclay purchased his first franchise in 2007. The Harrisburg location was underperforming and Meineke’s corporate office was eager to put the right person at the helm. Ryan, a native of Georgia, had moved to Charlotte eight years prior was considering the prospect of owning a Meineke franchise for some time. “I had been researching Midas and some educational business but really liked Meineke’s business model,
“Meineke Car Centers have experienced continuous growth in the US, Canada and Mexico with recent expansion to Saudi Arabia, South Korea and China.”
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the management team and of course the numbers made sense.” Less than 20 percent of Meineke franchisees have previous experience in the automotive industry. “I am certainly not a mechanic but I definitely love cars. At the time I was an outsider looking in and I felt that the automotive repair industry had an unnecessarily bad reputation that I could turn around.”
Ryan’s path to the franchise world was far from direct. Ryan attended Allegheny College, a small liberal arts school 35 miles southwest of Erie. Majoring in Economics and Math he thought he wanted to be a stockbroker. “Well, that lasted two months,” laughed Ryan. “I found it to be too much like a call center and nothing at all like I imagined.” So he switched gears and sought the help of a
temp agency. He would soon find himself in the tallest building in Pittsburgh, but not in one of the corner suite offices powering through proposals but instead taking a tally of the PNC Bank’s computer systems at night. However, Ryan soon became an invaluable member of the team and offered a full time position. He later moved to Charlotte joining Nation’s Bank on the cusp of its merger with Bank of America. His tenure lasted eight years, leaving as the Trading Risk Manager at the Fixed Income Trading Desk. He knew it was time for a change in 2005 when he felt pressure from senior management to monetize large pools or
mortgages with freighting risk profiles. Little did he know that he stumbled upon one of the largest debt crisis in history. “By that time I was happy to be attending to an oil change instead of a financial regulator.” It was through his career in the banking industry that Ryan developed professional relationships with a number of senior Meineke management and franchisees. The road to becoming a Meineke franchisee is broken down into a four stage process. Prospective franchisees first submit a Confidential Franchisee Application which includes a number of documents such as the Franchise
Franchising USA
en Kelly
Seizing the opportunity to take over an existing location he pooled together his life savings and took the plunge. It proved to be the right decision for both Meineke and Ryan as he made a quick turnaround, eventually rocketing to 80 percent growth. In the seven years since his first takeover in Harrisburg, Ryan has added two new locations in Mooresville and Concord, North Carolina and has plans for more. “Three is a stepping stone to four, five and six” says Ryan.
fr anchisee in acti o n by S tephen Kell y
M eineke
“The rewards will be endless when you learn that the hours you put in are investments in your company.” Disclosure Document and the Franchise Agreement. Stage one concludes with a meeting with a team of Meineke Franchise Development Specialists and selected individuals are invited to purchase a license. Licenses can range between $5,000 and $30,000. The second stage focuses on site location and funding where franchisees receive guidance from the corporate office. Meineke works closely with a variety of leading financial institutions for all levels of financing from SBA guaranteed loans to equipment leasing packages. 401K rollover programs are also available at no penalties to access. Each location receives a three to six mile protection zone and a two to three mile right of first refusal. “The fact that I purchased fixed locations, I missed out on the site selection process which is why I would like to build my next location.” Franchise Management Training is perpetual but always starts with a comprehensive 2.5 week long course hosted at the Charlotte HQ. There were 15 future franchisees in Ryan’s cohort, all from far flung parts of the country; from California to Chicago to Texas. “It was a collegial environment and we all grew close and still stay in touch today.” Training topics vary from business
essentials to technical products and service lines, all designed to bring people of diverse backgrounds up to a common level of understanding. Ongoing formal training is provided by corporate headquarters in the way of product selection, service procedure and reporting requirements. Invaluable training is also offered through the Meineke Dealers Association. The Dealers Association is an independent organization which strives for the betterment of the overall Meineke Franchise System. Organized in the 1990s the group is broken down into districts with elected members sitting on a national board of directors. The Board polices problems facing dealers and shares pooled experiences and data to help dealers become more successful. A bi-annual convention is held where several hundred dealers get together to make official decisions and network. The final stage is of course the grand opening where The Meineke Project Coordinator, Product and Equipment Manager, and Operations Manager work with franchisees to improve all aspects of operation in order to maintain a homogenize level of quality and service. Once the franchise is up and running, the focus becomes profitability and efficiency.
Work-life balance is also important to the Meineke culture. “As the owner/ operator of three locations, it forces you to delegate which is not always easy but you quickly find you spread yourself too thin if you don’t. When I first started out I would easily put in 60 to 70 hours a week learning the ropes to ensure my success. When I met my wife and started a family I realized that I couldn’t do it all myself and I wanted to spend more time with them. I have learned to delegate to my staff so I can acquire more locations.” Ryan has had some incredible experiences with Meineke. He owes a lot to his Meineke franchises, you could even say he owes his marriage. Ryan’s wife was once a customer of his Harrisburg location. “She came in to get an oil change and the rest is history.” His wife has since taken the Meineke Training Program and has become active in the management of their three locations. Ryan would whole heartedly recommend the Meineke franchise system to anyone who is interested. His advice for prospective or first time owners is to do your research upfront, know who your partners are and make sure you are willing and able to put in the time to succeed. “The rewards will be endless when you learn that the hours you put in are investments in your company.” For more information visit: www.meinekefranchise.com
Franchising USA
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e r u t fea
www.franchisingusamagazine.com
pets r etail featu r e
Featu re
The Best Things About Pets and Franchising We love our pets and will often spend vast amounts of money on them (probably more than we’d like to admit), but if you’re entrepreneurial-minded, you can make money from pets. From waste removal to custom-made paw print jewelry, pet franchises hold a lot of opportunity for anyone who loves working with animals. Well over half of all households in the US own a pet. According to numbers from Franchising Help, 68 percent of US households own a pet, which means there are pets in about 82.5 million households across the country. While fish are the most popular pets in America, followed by cats, dogs, birds, and reptiles, in that order, the lion’s share of the franchising opportunities are geared toward dogs, which cost, on average, $1,648 per year to care for. The best thing about pet franchises is that many of them require only a small amount of startup capital and you don’t need an extensive amount of knowledge about animals to get involved with them
Franchising USA
(although it will help if you have a genuine love for animals). The pet industry was worth $55.53 billion in 2013 and is expected to grow annually by 4.4 percent right through 2016. It can be broken down into products and services. The services are often in the form of training, care, grooming, waste removal and disposal, boarding and other similar services. Pet products include items like food, toys, beds and housing and anything else that you purchase for your pets. While many pet franchises are run out of people’s homes or are highly mobile, pet stores and other similar franchises will require a location.
Categories of pet franchises The Franchise Direct Pet Industry Report breaks down the pet industry into seven categories.
Pet sitting & dog walking Pet sitters are responsible for looking after pets while their owners are away. This may include playing with the pets, taking them outside for activity, feeding them, administering medication and removing waste. The service will last for as long as the client is away and may include other duties outside of pet care like watering plants and bringing in mail. Dog walking is a bit more specific and may just entail going to a residence and picking up a dog
and walking it for a set amount of time.
Dog training Dog training requires skill and patience, as well as a love for dogs. And, of course, dog trainers will need to be trained themselves. Dog trainers must also train dog owners to be able to carry on with the behavioral training once they themselves are finished with the dog.
Pet grooming Pet groomers make pets look good. This often includes brushing and washing, but can go well beyond that into manicures, ear cleaning, mouth/teeth cleaning and fur clipping. A pet groomer may also sell products to people to help them keep their pets looking good.
Retail pet shops These can cater to a few specific types of pets or the full spectrum of critters. They can sell basic food and supplies or more luxury items and can either be run as an online store or from a physical location. (Online stores will still require a physical location.)
Pet waste removal services These are largely about ridding yards of dog droppings, but they can also involve emptying car litter boxes or providing other types of pet waste removal.
Pet photography
population of the US in that time period.
Pet pampering
Self-explanatory, many pet photography services have a mobile studio so that they can come to the customer rather than having the customer bring their pet to them. They will often set up shop near a grooming service so they can catch pets looking their best.
This uptick in the number of households owning pets can be explained by the fact that more people are concentrating on their careers and putting off having children until later in life. Pets are filling this emotional void for people as they stave off having kids. In addition to that, the retiring baby boomer generation is buying pets to fill the void of the children who have grown up and left the home.
This altered role for pets — that of filling
“The strong growth in the [pet-care] industry demonstrates what an important role pets are playing in the lives of Americans,” Bob Vetere, American Pet Products Manufacturers Association COO and Managing Director, said. “They have become a part of the family. Spending across all sectors, from pet food and veterinarian care to toys and treats, reflects what lengths we are willing to go to for our pets.”
get hammocks, wedding dresses, tuxedos,
Veterinary services These are medical operations and require specialized education and training.
Pet industry growth As mentioned previously, the majority of households in the U.S. own at least one pet. On top of that, the American Pet Products Association found in a national survey that the number of households owning pets grew by 38 percent in the decade 1998 - 2008, meaning that the petowning population outpaced the general
the emotional void of children — has led
to pet owners becoming more akin to pet parents. And pet parents like to spend lavishly on their pets if they can.
The old blanket in the corner has been
replaced by faux mink dog blankets and
wool or cotton dog coverings have given way to cashmere sweaters. You can now sports jerseys jewelry and Halloween costumes for pets.
Easily recognizable brands are cashing in on people’s penchant for pampering their
pets. Harley-Davidson, for one, knows that its customers are fiercely brand loyal and
it now has a range of pet products with its logo that sell at appropriately marked-up prices.
Franchising USA
pets r etail featu r e
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pets r etail featu r e
Featu re
“The best thing about pet franchises is that many of them require only a small amount of startup capital.” Aging and obese pets With the constant pet pampering, pets are also living longer, which means they are experiencing more health problems later in life. This means more spending on overthe-counter medication for them, as people treat their ailing pets rather than just putting them down, which was the usual course of action decades ago. Sometimes people can get a little carried away with the pampering, though, which has also lead to a rise in obese pets, particularly cats and dogs. The problem is so bad that there is now an organization dedicated to combating it. According to a 2013 survey performed by the Association for Pet Obesity Prevention, 57 percent of cats are either overweight or obese and 53 percent of dogs are either overweight or obese. This misfortune for pets has turned the specialty pet food market and over-thecounter pet medicine into a lucrative and growing market, though. Pet parents spent $4.1 billion on organic and natural pet foods last year according to market research firm Packaged Facts. This particular sector of the pet food industry has seen a compound annual growth of 17 percent over the last four years.
Specialty foods Some specialty pet foods don’t even have to do with health, though. Sometimes, the pet parents just have a preference for certain foods that fit in with their lifestyle and they want their pets to follow suit. An estimated two million cats and dogs are fed kosher pet food, while another four million felines and canines are fed vegetarian pet food. And even tap water isn’t good enough for some people’s pets, as about two million dogs and cats drink flavored water and eight million are given bottled water to drink.
Franchising USA
Needless to say, the specialty pet food sector is another area of growth in the pet franchising market.
Pet insurance Another market that continues to grow thanks to pets living longer is pet health insurance. Again, this is such a large growth area that an association has sprung up for it. According to the North American Pet Health Insurance Association (NAPHIA), over one million pets are insured, with annual premiums across the industry between $475 and $500 million. Using the NAPHIA numbers, Embrace Pet Insurance reports that these annual premiums grew at a compounded rate of 13 percent between 2008 and 2012. If all of this talk of growth hasn’t convinced you yet that the pet industry is worth getting into, Inc. magazine named pet care as one of the best industries to enter in May 2012. That’s a pretty good endorsement for the industry.
Getting Started But, where do you fit in? Deciding to open a pet franchise will involve asking yourself some important questions. • Do you want hands-on involvement with animals or would you rather be related more with the sales side of things?
isn’t being offered or what service there is a demand for that isn’t being met by current businesses in the area. Some franchisors will help out with initial funding, usually in the form of a loan for a partial amount of the startup costs. All franchisors will offer some form of training for new franchisees, which will usually include both classroom training and on-the-job training. Often franchisors will pay for your travel and accommodation expenses for training purposes. Researching potential franchisors is just as important as researching the market in your area. Make sure that the franchisor offers sufficient support to its franchisees and that it has the marketing and brand recognition power that makes franchising so attractive. If you have a love of animals and a head for business, opening a franchise in the pet service industry can be a lucrative venture. Pets are more important than ever for people and their pooch pampering can mean mega money for the right person backed by the right franchisor. It’s clear that right now, opening a franchise in the pet industry will have you barking up the right tree. About the author: A former journalist, Rob Swystun, has been writing professionally since 2006 and now concentrates on freelance writing. He lives in Winnipeg and is currently an Athabasca University student studying for a BA in Communications.
• Would you like to take advantage of the lower startup costs of a mobile pet service business (and the accompanying lower earnings potential) or are you willing to take the risk of opening up a more permanent business (and reaping the increased earning potential that comes with it)? • Can you procure the funding necessary to start a franchise? You’ll need to do research about the market in your area to find what service
Rob Swystun
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DON’T MISS OUR NEXT ISSUE!
Sports & Fitness
Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.
Find out more about Sports and Fitness franchises in the July edition of Franchising USA. For interactive editorial and advertising solutions, please contact Vikki Bradbury vikki@cgbpublishing.com. 778 426 2446 Franchising USA
ex per t advice
David Banfield, President, The Interface Financial Group
No Asse David Banfield
In surveying small business owners and franchisees regarding their decision that led to the creation of a business from scratch or the purchase of a franchise, some common elements keep showing up. We wanted to see if entrepreneurs that had gone the ‘start from scratch’ route were able to say with confidence, “Yes - I would do it that way again”. Similarly we asked franchisees of various business models if they would do it again - under a franchise format.
“They specifically wanted a system that had already been tried and tested. They did not see themselves as individuals working a system that still needed to have the kinks removed.” Franchising USA
embly Required... On the positive list for the start from scratch group were a number of comments that perhaps in hindsight showed a lack of direction or dedication. Many indicated that they liked the way their business had evolved. Many stated that it was quite a long way from the original plan. This was, perhaps surprisingly, sighted as a positive factor. Entrepreneurs indicated that they liked the flexibility that their own model gave them. They could change this process or that procedure ‘on the fly’ to experiment and see what options worked best. Sometimes they admitted that they found options that evolved through ‘trial and error’ and were definitely not a feature of their original business plan.
Being their own boss gave them the flexibility to redesign the process almost on a daily basis. Some did admit that while it was good to be able to make such changes and see them implemented quickly, it was in many cases a process that slowed their overall growth. Many admitted that it took almost twice as long as they had originally planned to get it right and evolve a definitive plan. Naturally with that elongated start-up period came the attendant pressure on cash flow and lack of profits and real growth. There were mixed responses when asked how they felt their company name was accepted in local business circles. Many agreed, perhaps reluctantly, that a more established ‘brand name’ might have given them greater opportunity in a shorter time frame. Not surprisingly, the franchisees also seemed to have common elements that they spoke about concerning their business, notwithstanding that they came
from a varied range of services.
Three specific ‘likes’ surfaced many times. They were training, manuals, and help on call. All spoke of the great asset that training provided. Virtually all franchisees had no prior business background and experience in the franchise which they subsequently purchased. Training, therefore, was a must and for most created a solid foundation on which they built their business. Having a written plan, a ‘how to’ model in the form of an Operations Manual, was another area where franchisees were all in one accord. The manuals provided the day-to-day direction and, in many cases, franchisors had required manuals to be studied prior to training. This allowed franchisees coming from unrelated disciplines to study their new business in depth and at their own speed prior to the franchisor adding their training program. The third ‘like’ was the fact that there was always help when needed. Franchisees admitted that even with extensive training and updates, etc. they still faced situations where it proved beneficial to be able to talk to an expert for help and direction. Having that help readily available was, for some, the number one feature that they now look back on and feel they made a wise decision in the course they took. Based on the feedback from the entrepreneurs group who stressed their ‘likes’ in the area of flexibility and freedom, it seemed appropriate to ask franchisees about their feedback on these two areas. Did franchisees feel that they had ‘bought’ into a system that was rigid and left no
room for creativity or change? The answer was not only a resounding ‘NO’ but they all commented on the fact that it was one of the reasons they went the franchise direction. They specifically wanted a system that had already been tried and tested. They did not see themselves as individuals working a system that still needed to have the kinks removed. On the topic of freedom in their day-today business operations, none of them indicated that there was any noticeable pressure within their particular franchise culture that led them to see themselves as anything but independent business owners, free to come and go as they pleased. In the final analysis there is probably no definitive statement that says one model is superior to the next. There will always be those who like to be creative and perhaps even re-invent the wheel, and then there will be others who definitely want a ‘noassembly-required’ model. If you are at the start of the search, take time to review the pros and cons of the various options, review the pros and cons of what you bring to the table as an individual, and then get the pieces to line up. David Banfield is President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. For more information visit: www.interfacefinancial.com
Franchising USA
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ex per t advice
Marwan Kojok, Managing Partner, Baybridge Lawyers - Australia
INTERNATIONAL EXPANSION
AND T HE LE G AL C OMPLE “International expansion raises complex issues in relation to both protection and enforcement.�
Marwan Kojok
Often reported as the most successful method of product and service distribution developed during the Twentieth Century, franchising is seeing huge success on an international scale. Businesses today are encountering a business climate open to and accepting of new products and services and closing in on language and commercial barriers making international business an imminent global success. This however has its exceptions. Speaking over 25 years ago on the topic of international franchising arrangements, Professor Warren Pengilley commented that franchisors planning overseas
Franchising USA
expansion should be prepared for this exercise to take twice as long and cost three times as much as anticipated. Perhaps it was the other way around. The point is that international expansion is a complex, and therefore a costly and time consuming exercise. This is nevertheless a challenge that most established domestic businesses will consider and many will overcome. Franchising is a very significant force in the internationalisation of business and Australian franchise systems are featuring prominently. The 2010 Franchising Australia Survey, records that just over one quarter (28 percent) of Australian franchisors are currently operating overseas.
infrastructure, a mature and familiar legal system and, few restrictions on foreign investment to list just a few of the most obvious factors. That the UK, Europe and the US rank much higher than South East Asia in the internationalisation strategies of Australian systems suggests that geographical proximity is not the most important factor.
The complexities of international expansion are of course not limited to matters legal. Social, commercial, geographical, political and fiscal considerations all raise real and significant challenges. It is hardly surprising that the Franchising Australia Survey records that New Zealand is the most popular initial destination for internationally expanding Australian businesses. That 71 percent of systems expand to New Zealand first reflects not only geographical proximity but also close historical links, a shared language, a similar society, familiar social and cultural norms, a stable political system, established commercial
The expanding business has a range of entry options. A company can establish a subsidiary in the target country, which of course does not involve a foreign partner or, at the other extreme, can franchise direct to a foreign franchisee which also does not involve the intervention of a third party. However for practical reasons the vast majority of expanding businesses contract with a partner in a joint venture, master franchising or area development arrangement.
Businesses that are confident they can negotiate the cultural, social and commercial hurdles of course must consider the legal and regulatory hurdles which are real and substantial. Some of the keys issues are:
Business entry
Each entry vehicle requires appropriate documentation having regard to the requirements of the local law. Burger King found itself in a geopolitical dispute in the
EXPANSION X I T IES
Middle East over the interpretation of international law resulting in threats to revoke their business licenses in Islamic member states creating friction between Burger King and its Israeli franchisee. In the case of joint venture, master franchising and area development arrangements there is also complex documentation required to record the respective rights and obligations of the parties that emerge from negotiations
which are invariably long and complicated and are frequently tense and frustrating. A complicating factor is that in many developing countries, contracts are
not accorded the same respect we are used to in Australia and may even be
regarded, at least from a business if not
a legal perspective, as a basis for further negotiations rather than the binding
expression of a concluded agreement.
The agreement Negotiating and drafting an appropriate
agreement is always a complex exercise. Negotiating and drafting an agreement for a foreign country is even more
complex. With respect to franchising, although to some extent it is generic,
the laws governing franchising are not.
Thirty countries have dedicated franchise regulation but there is no uniformity in
Franchising USA
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ex per t advice
Marwan Kojok, Managing Partner, Baybridge Lawyers - Australia
“A business with local registered marks may still face challenges in enforcing its intellectual property rights.” the regulatory models applied or even the extent and comprehensiveness of regulation within a particular regulatory model. In the unregulated regimes the relationship is regulated under the commercial laws of general application to all business activity. The agreements will need to identify the appropriate governing laws and tax related issues. These areas are complex and in most cases deal breakers as they create a sense of security, providing jurisdictional control and tax concessions. The repatriation of fees, royalties, profits is highly reviewed and determined during the negotiation process and can be a costly exercise if overlooked.
Intellectual property The protection and enforcement of a company’s intellectual property are front of mind for any business and especially so in franchising. International expansion raises complex issues in relation to both protection and enforcement. Protection of intellectual property is complicated by the reality that although business is conducted internationally, trade mark protection is granted locally. A registered trade mark in Australia confers a monopoly only in Australia. As a result, an internationally expanding franchisor can be frustrated by “passive name pirating”— an offshore entrepreneur registering the trade mark in their home jurisdiction. There are many examples but Burger Kings’ experience in Australia is perhaps the best known. Despite at that time operating in over 70 countries its expansion in Australia was under the name ‘Hungry Jacks” because the name “Burger King” was unavailable having been registered by another person. In Australia and throughout the western world generally, first use of the mark in the jurisdiction gives the right to register but in some countries such as China, it is a
Franchising USA
‘first to register’ system which poses even more challenges for the internationally expanding franchisor. China also raises issues inherent in a language system which is not based on the Roman alphabet — that of registering an appropriate foreign language mark as protection is granted only to the mark itself and not to a transliteration of it. The problem of international registrations has to some extent been lessened by the Madrid Protocol which facilitates registration in member countries through a single filing with the Australian Trade Marks Office. International trade mark protection however, remains an expensive, complex and vitally important exercise for any international business. A business with local registered marks
may still face challenges in enforcing its intellectual property rights. Particularly in developing countries there is not yet the same respect for intellectual property that we are used to in Australia. Enforcement actions are difficult and not always successful. Abercrombie & Fitch have invested heavily in brand protection employing ex-FBI agents to combat the problem worldwide. This is a result of extensive counterfeiting caused by the very reason businesses are looking to grow internationally - the internet and access to information. Marwan Kojok is the Managing Partner at Baybridge Lawyers For more information visit: www.baybridge.com.au
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TIMELESS CONCEPT. PROVEN FRANCHISE.
“Village Inn offers a unique franchising opportunity based on a breakfast all day concept that has proven longevity and increasing popularity.” �PAUL WALKER
VILLAGE INN FRANCHISEE
A GREAT FRANCHISE OPPORTUNIT Y AWAITS YOU. Since 1958, guests have visited Village Inn because they know they will enjoy great-tasting food and extra-friendly service in a clean and comfortable family environment. Village Inn’s breakfast heritage is based on made-from-scratch buttermilk pancakes, eggs cooked any style and a pot of hot coffee on every table. The breakfast all day restaurant has never been more popular, Village Inn is one of the originals—a proven brand for more than 50 years. CONTACT US TO LEARN MORE ABOUT HOW VILLAGE INN IS THE RIGHT FRANCHISE OPPORTUNITY FOR YOU.
17 Consecutive Quarters of Year-Over-Year Sales Increases ••• Nation’s Restaurant News Consumer Picks 2014:
Top Five Family Dining Restaurant •••
System-wide Updated Brand Décor Including Freshened Logo and Updated Interiors and Exteriors
•••
Strong Average Unit Volume and Great Unit Economics •••
Training, Opening Process, Marketing and Sales Support ••• Breakfast Served All Day,
The Right Way FOR MORE INFORMATION ON FRANCHISING OPPORTUNITIES:
WWW.VILL AGEINN.COM/FRANCHISES/
OR CONTACT MONTY WHITEHURST AT MONTY.WHITEHURST@ABRHOLDINGS.COM | 214-728-4370
Franchising USA
spotlight o n serv ice by S tep hen Kell y
Cadence 9 ®
Quantify mark into revenu
The not-so-secret mission of all marketing managers is to be able to quantify their marketing budgets into revenue dollars. Proven to be an elusive ambition, Marketing Managers from all industries are frustrated when their efforts fall short. With the advent of online marketing and social media, that goal seemed destined to remain a dream. However, in the midst of this plethora of new advertising avenues a number of companies have emerged to make sense of this new frontier. They serve to distill the noise down to coherent feedback and help marketing professionals, according to Jennifer Christian, “make
Franchising USA
data-driven decisions for future editorial content.” Jennifer is the Vice President of Sales for Cadence9®, a social media and content marketing firm that has found its niche in servicing the online marketing efforts of franchisor systems. Services focus on maintaining the Content Marketing Lifecycle™ and social media activities of brands. Cadence9® is a part of the larger vdR Group, a cluster of diversified technology companies. The Content Marketing Lifecycle™ is the proprietary verbiage of Cadence9® and defines a seven step process for an effective content management strategy. Content Marketing is the creation and sharing of media and publishing content in order to acquire customers. The aim is to create interest in a product or service through educational or informational material. For Cadence9® the center of this product offering is the franchise 360™ report.
“The franchise 360™was born out of our work with the Content Marketing Lifecycle™ tools. So many times the question at the front end for clients is ‘What content should I create?’ Until you answer that question and know where you are starting from, you can’t tell a client what to do next. It is about finding where you are so you can know where to go,” says Jennifer. Essentially the franchise 360™ Report is a 90-day diagnostic report for social media and content marketing. It is a snapshot of real-world data, published by you, your customers, your competitors, the market and/or analysts. Its reach is boundless and covers the entire company on all existing social media platforms such as Facebook, Twitter, LinkedIn, Google Plus and YouTube to name a few. It is a time management tool, saving the client hours by aggregating the data into a graphical report. It tells the franchise story; whether their content marketing is effective and whether it is worth sharing. The goal of marketing teams is
keting budgets ue dollars Cadence9® franchise 360 ™ - Brand Management Digital Marketing Audit Report
360 Quadrant Performance Overview The franchise 360 ™ Content Marketing Index (CMI) for Closets by Design is detailed below. In brief, the CMI score is comprised of many variables to create a score between 0 and 100. Some of the key variables are highlighted below. Definitions for the CMI variables are available for review in the Content Marketing Index Variables section located toward the end of this report.
Company: Franchisor
URL: franchisor.com
Your Content Marketing Intelligence Score
Planning
Production
24.32 Average Posts per Channel 0.37 Post Frequency
3 Media Variation 936 Post Count
34 out of 100 Publishing
Engagement
44 Number Of Channels 5 Platform Variation 0 Number Of Dormant Channels
to publish content and have it spread by loyal customers, customers that Jennifer refers to as ‘brand ambassadors.” The franchise 360™ reporting features test to see if you have any of these customers by measuring a number of key performance indicators that include post to engagement ratios, average post frequency across all platforms, total engagement across all social & content platforms, most engaging content in the last 90 days, number of active and inactive channels and competitor post and engagement comparison. franchise 360™ is an annual subscription service with a tier-based fee structure. Packages denoted as Bronze, Silver and Gold give customers differing options based on metrics, reporting options, brand audit analysis and data. Fees range from a complimentary first report to per-channel pricing with a one-time set-up fee. Both the Silver and Gold packages include monthly phone consults for ongoing analysis and actionable recommendations.
817 Engagement Count 0.87 Average Engagement per Post
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Filling a void in the market Cadence9® honed in on the franchisor/franchisee relationship. Jennifer, who works closely with a wide variety of franchisors in a variety of industries, says the value proposition of franchise 360™ is best realized by the system as a whole. Whether it is a system of tens of locations or hundreds, a franchise system needs scalability and efficiency. Our report offers easy to interpret graphical data denoting details about every location. Marketing Managers can easily see what worked and what did not. The franchise 360™ report has been in beta for the last eight months and its launch coincides with the publication of this article. “During the trial phase, our research has proven that franchise systems for the most part have no idea what is happening. They don’t have the internal
tools to quantify results. We have found dormant channels and areas of dilution and mixed messages. By establishing an existing footprint, we can create the path forward; clients can then decide where to devote resources.” Offering insight into some of the common pitfalls of franchise clients Jennifer notes that often the task of regional or local content is delegated to individual locations. We advocate for administrative ownership because we are seeing that social media channels are becoming a new form of intellectual property or goodwill. With Cadence9® helping franchise systems circumnavigate these vast new marketing channels with franchise 360™ - look to see these intangible assets present on more and more balance sheets. For more information visit: www.cadence9.com
Franchising USA
spotlight o n serv ice by S tephen Kell y
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Franchising USA
JUNE 2014
Veterans in Franchising www.franchisingusamagazine.com
Unishippers
A Move In The Right Direction
V-Wise
Worthwhile and Special VBS Pricing Guarantees?
Franchising USA
feature
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Veterans in Franchising Supplement june 2014 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the July issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com
Contents 50 Cover Story: Unishippers a Move in The Right Direction
Profiles 52 Amerispec 57 Jiffy Lube 58 Ice House America 64 Precision Auto Care 68 68Interim Health Care
Expert Advice
54 How to Make Your Franchise Actively Engaging as a VetFran Participant Gordon Logan 60 V-Wise Worthwhile and Special Mehan Conroy Florkowski 66 Franchise Broker vs Consultant vs A Hybrid? James Mingey 70 VetFran News: Veteran Franchisee is The Voice for Veterans
Franchisees Everywhere
Franchising USA
Veter ans in Fr anchising
COV ER STORY
Unishippers
A Move In The Right Direction Retired U.S. Air Force Veteran Terrance Turner tells of his experience after winning a Unishippers National Franchise As many veterans unfortunately experience, one of the greatest challenges transitioning back to civilian life is finding a job. It’s incredibly overwhelming returning home without an obvious, paved career path waiting for you and a lot of veterans struggle with how to start the process and move in the right direction. When I retired from the U.S. Air Force, the first thing I did was search through the U.S. Small Business Administration’s “Approved Franchises” list for logistics franchise opportunities. During my 31+ years in the military, I served as a Logistics Superintendent for the Air Force, a Master Scheduler/Planner for the Crestview Aerospace Corp, and a Logistics Manager for the Department of Defense regarding foreign military sales; thus, I knew logistics was the route I wanted to take.
Franchising USA
Terrance Turner
After nearly a year of thorough research, I came across an opportunity with Unishippers, the first and one of the largest small package and freight third party logistics franchises in the nation. The franchise was hosting a Veterans Franchise Giveaway contest in support of the International Franchise Association’s Operation Enduring Opportunity and VetFran program, both of which strive to help veterans gain employment through franchising. In collaboration with USA Cares, a charity that provides financial and advocacy assistance to post 9/11 active duty U.S. military service personnel, veterans and their families, the purpose of the contest was to award a deserving, qualified military veteran a free Unishippers National Franchise. To participate, each veteran had to create a two-minute video explaining why we were interested in owning a Unishippers franchise, why we were deserving of a free franchise and how our military experience would help us become successful. Given my extensive background in logistics and passion for the field, the concept and contest aligned perfectly with my personal and professional goals, and I set out to make my case to the Unishippers team. After reviewing over 50 entries, a panel of judges from
“I’m also able to use my role as a small business owner to give back to the veteran community and hire retired logistician veterans from around the U.S.” Unishippers corporate selected five finalists, including myself, and flew us to Unishippers headquarters in Salt Lake City for a special Discovery Day where we met executives, department leaders and the judges. On Veteran’s Day, November 11, 2013, – a day I will now never forget – I was officially announced as the winner of a free national franchise. Since launching my business six months ago, I’ve had a unique advantage of being able to leverage my former relationships with freight forwarders and military base transportation management officers for business, diving into an untapped sector for the Unishippers system. I’ve been working with freight forwarders since 1992 so I’m able to use my knowledge of their needs and services and speak their language, so to speak, to attain their business and grow my own. Throughout this, my first entrepreneurial experience, I’ve found the qualities I acquired during my time of service – discipline, following a structure, being patient, remaining calm – have translated
into strong business skills for running a franchise as I’m able to put these qualities to use and get to know my customers on a deeper level, even when it’s over the phone. Being a franchise owner has been such a rewarding experience so far and I’m incredibly appreciative of the opportunity Unishippers provided through the contest. Over the next two years, my primary goal is to continue expanding my client base by developing additional military-related business relationships. Operating a national franchise, I’m able to work from anywhere and sell to businesses across the country, which means I’m also able to use my role as a small business owner to give back to the veteran community and hire retired logistician veterans from around the U.S. as sales consultants. Following Unishippers’ example, I’m very eager to pay it forward by reaching out to other deserving, qualified veterans for employment in the near future. For more information: https://www.unishippers.com
Franchising USA
v eter ans in fr anchising
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Veter ans in Fr anchising
A mer isp ec ® product that was clearly better than the competing franchises.” Now, four years into being an AmeriSpec® owner and continuing to add staff and inspectors to his franchise, he says there’s no place he’d rather be. “I’ve had some fantastic and unique experiences in my life,” Hartman said. “But, I’d rather be doing what I’m doing now – running my AmeriSpec® home inspection business!”
Guy Hartman
During his military career, Hartman sold and purchased many homes and had several inspections done by AmeriSpec. Impressed by the consistency and experience overall, the AmeriSpec business model was his choice when he retired from the aviation industry and was contemplating his next career move.
Profile
Former Marine. AmeriSpec ® Owner. Innovator A 25-year veteran of the U. S. Marine Corps, Guy Hartman is no stranger to hard work. He retired in 1998 after a long list of accomplishments and challenges including Marine Corps boot camp, Marine Corps Officer Candidate School, U. S. Navy Flight School, Navy Test Pilot School and earning a Master of Science degree. All while raising a family. He was the chief test pilot for the presidential helicopter program located at the Naval Air Station, Patuxent River, Maryland. He led his team in developing a test program that remains in use and is now the model for other military test programs on the base.
Franchising USA
Hartman continues to innovate. When
formulating his future career trajectory,
Hartman honed in on franchising in home inspections, an area of personal interest and experience.
“I had been interested in becoming a
home inspector for many years,” he said.
“I came to the AmeriSpec® franchise so that I could quickly build my business.
From personally buying and selling many homes, I felt AmeriSpec had a consistent
With a home base in Jupiter, and a service area that covers north Palm Beach, Martin and St. Lucie counties, Hartman helps South Florida buyers, homeowners and realtors with all their home inspection needs. His wife, Cindy, handles the operations and marketing while Hartman covers the inspections. With new ideas and innovation in mind, Hartman began building a ServiceMaster networking group for support and business synergy. This unique vehicle benefits all ServiceMaster franchises in his area – ServiceMaster Clean®, ServiceMaster Restore®, AmeriSpec® and Furniture Medic® – with relationship building and interaction between each other, home buyers and the real estate and insurance communities. Full-knowing a healthy balance of work, personal time and community give back is important, Hartman plays the drums in his spare time and plans to support a youth baseball team in the near future. Maybe, he’ll call them the “Inspectors.”
“Impressed by the consistency and experience overall, the AmeriSpec business model was his choice when he retired from the aviation industry.”
To work independently To your workown independently To set work schedule To work independently To set your own work you schedule To work at something enjoy To set your own work schedule To To work at something you enjoy control your own salary To To work at something you enjoy control your own salary To control your own salary
Want To Be Your Want To Be Your Want Be Your OwnToBoss… Own Boss… Own Boss…
“BUILDING AMERICA WITH AMERICAN HEROES”
www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com “BUILDING AMERICA WITH AMERICAN HEROES”
© ASUKA Inc. 2014
Veterans make great franchise Veterans make greattraining franchise owners! Your military has Veterans make great franchise owners! Your military training has taught you many things that transfer owners! Your military training has taught youthe many things that transfer well into world of franchising. taught youthe many things that transfer well into world of franchising. well into the world of franchising.
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Veter ans in Fr anchising
Gordon Logan, Founder & CEO of Sport Clips Inc.
How to Make Your Franchise Actively Engaging as a VetFran Participant
Franchising USA
The International Franchise Association’s VetFran program is making a difference in the lives of people who’ve served our country through the military. The numbers prove it: • One-out-of-every-seven franchise businesses is owned and operated by a veteran of the U.S. military. • More than 66,000 veteran-owned franchise businesses in the United States provide jobs for 815,000 Americans and generate more than $41 billion in GDP. • Since the November 2011 launch of Operation Enduring Opportunity, more than 150,000 veterans started careers in franchising, including more than 5,200 new franchise business owners. • More than 640 franchise businesses participate in the VetFran program through incentives and by providing mentorship opportunities. As VetFran vice chairman and a VetFran mentor, I’m proud of the tools we offer online and in-person through member franchises that are essential in the discovery and decision-making processes around becoming a franchise investor or operator. From a veteran’s perspective – typically with a preference for structure − it is critical to provide a framework for all information and resources necessary to methodically walk through the benefits of franchise ownership. The required financial profile and operational model should be communicated in a way that easily allows a potential veteran candidate to determine
“One-out-of-every-seven franchise businesses is owned and operated by a veteran of the U.S. military.” a good lifestyle and value system fit, for those who possess the entrepreneurial spirit. Through the franchise business model, we can help them find a purpose that allows them to continue to serve others. Up-to-date franchise news, how-tos, personal stories and frequently asked questions are just a few of the items included in a toolkit offered by VetFran that make it convenient to source customized information required to launch what may well become a second career with a franchise for our veterans. For franchises to be effective in our outreach to service members and veterans, we, as VetFran participants, must actively engage the same principles that make us relevant to our clients and customers in recruiting these potential franchisees to our ranks. • Franchises should stay on trend, relevant, inspiring, purposeful, innovative and community-centric − these are things that will make our future franchisees pause, listen and
pay attention. It’s “Marketing 101” to be engaging, and the same is true when it comes to franchise recruitment, especially for military candidates. We’ve all seen franchise concepts come and go, but those with staying power maintain these key characteristics from the highest levels in their support centers to those individuals who deliver our frontline products and services. These are the qualities that will motivate candidates to not only seek us out, but look deeper into the opportunities we offer them. • Franchises should incorporate military-support programming to demonstrate concern for active-duty service members and veterans, not just in word, but in deed. Having a military recognition component as a part of your operations or philanthropic outreach is an effective way to give back and gain the respect of those who serve, as well as the respect of their friends and family. As a veteran, I made it a priority to support the military
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Veter ans in Fr anchising
Gordon Logan, Founder & CEO of Sport Clips Inc.
“The more comfortable you are with your brand identity, the easier it will be communicated to potential veteran franchisees in a way that resonates and is effective.”
through the franchise I founded, Sport Clips Haircuts, and soon found it was enthusiastically embraced by team members, clients and franchisees. Giving back to those who have given so much to us fits well with our brand and with our values, and gives a sense of purpose to the entire organization. • Franchises that honor the military may find it becomes an essential, powerful component of your brand identity, as it is in alignment with the lifestyle demands of clients. For many franchise concepts, and certainly for ours, it is quite literally a part of who we are. If you don’t already have a philanthropy established, I encourage you to take a close look at the options you have available to support worthy veterans’ causes, including partnering with established veterans’ organizations such as the VFW. Our signature outreach is through Sport Clips’ Help A Hero program (administered by the VFW) that funds scholarships for returning military members who are working toward the next step in their careers, as well as free phone calls home through the Veterans of Foreign Wars’ Operation Uplink. Other options we’ve supported through in-store fundraisers and donations include Wounded Warriors Family Support, Honor Flights and Ageless Aviation Dreams; there are many that may well fit your interests and your brand.
Franchising USA
• Potential franchisees, military or not, want brands to be deliberate with their identity and make it simple; the same is true no matter your concept and your audience. Make it simple for those military members who are transitioning to civilian careers or are coming to us years after their military service to understand what it is you have to offer. Ours is to offer a championship haircut experience for men and boys in an exciting sports-themed environment. Yours may be just as simple, but put it out there for them to see, learn, know and embrace. Start with your franchise development team, make sure they know it and live it. The more comfortable you are with your brand identity, the easier it will be communicated to potential veteran franchisees in a way that resonates and is effective. • Franchises should work to build teams that allow for rallying behind a mission. Franchises typically offer a focused business strategy that sets us apart in offering investors a way to work together toward a common goal. The same is true for those in the armed forces, who are accustomed to being provided with the tools and equipment needed to be successful in their missions. We can do the same through our franchises in recruiting them; we simply need to communicate that mission as we build our teams through franchise recruiting efforts.
• Franchises must have welldocumented policies and procedures. Veterans have been trained to follow systems, where precise execution is key to successful mission completion and in many situations, life or death. Make sure that your franchise systems are well-documented and effectively communicated to take advantage of this key advantage that veterans have in becoming successful franchisees. Noted author and agency executive Roy Spence suggests that it is important to help people discover and live their purpose, with the understanding that purpose drives performance. As members of VetFran, we can help veterans discover the enthusiasm we have for our brands and what we deliver daily through our service offerings. Our messaging to veteran candidates as potential franchisees should be deliberate and concise. We must have a strong support structure to provide through a franchise model as a roadmap for their success in our systems. By doing so, we’ll help veterans evaluate if our purpose and values are consistent with theirs, and will make franchising an even stronger option for veterans in reaching their civilian career potential when they consider next steps. If we do this effectively, the number of veterans in franchising will. Gordon Logan is the founder and CEO of Sport Clips Inc. and serves on the IFA board of directors. Find him at: fransocial.franchise.org.
Mike Soules
Profile
U.S. Air Force veter an, Jiff y Lube fr anchisee A 20-year veteran of the U.S. Air Force, Mike Soules has always had a passion for all things mechanical and automotive. Soules joined the U.S. Air Force as an aircraft mechanic, working to keep aircraft including the C5 and C141 flight ready. During his years of service, he managed the Air Force Base Self Help Program, supervising facility renovations, and he received recognition as one of the top Air Force recruiters in the country. Shortly after retiring from the Air Force in 1996, Soules decided to utilize his passion for mechanical operations and his extensive leadership expertise by joining the nation’s leading fast lube provider, Jiffy Lube. Soules served as the manager of a Jiffy Lube service center located in Dover & Lewes, Del., for 12 years combined. After gaining thorough knowledge about the preventive maintenance business, Soules made
the decision to become a Jiffy Lube franchisee. “I’ve always wanted to partner with a company whose mission and values were consistent with mine and Jiffy Lube was a natural fit,” Soules said. “When the opportunity presented itself, I knew that the timing was right to take the plunge.” In 2012, Soules and his wife, Sara, became first-time franchisees after purchasing an existing Jiffy Lube service center based in Lewes, Del. This family-owned business also includes their daughters Kim Soules, Erin Soules Rivera and son-in-law Jovan Rivera. Since opening the store, Soules has managed the service center. After two years in business, the Soules family has never looked back. “We have truly enjoyed our experience working with Jiffy Lube and are grateful for our dedicated team of employees
who have contributed to our growth,” said Soules. “Our business has brought us closer together as a family and has strengthened our relationship with the community. We couldn’t imagine not being part of such a dynamic brand.” Soules attributes his success in part to the ongoing support and training that Jiffy Lube provides to franchisees. “Jiffy Lube offers an award-winning training program that is second to none,” said Soules. “The company’s commitment to its franchisees has allowed us to focus on providing the best automotive preventive maintenance services to our growing customer base.” Jiffy Lube International is a member of IFA’s VetFran program, which voluntarily offers financial incentives to veterans seeking to become franchise smallbusiness owners. Through VetFran, Jiffy Lube continues to help veteran franchisees find a path to business ownership. With a network of more than 2,000 franchised service centers across North America, serving 22 million customers each year, Jiffy Lube serves as the fast lube industry leader. For more information visit: www.jiffylube.com
“I’ve always wanted to partner with a company whose mission and values were consistent with mine and Jiffy Lube was a natural fit.” Franchising USA
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Jif f y Lube
Veter ans in Fr anchising
Ice H ouse A mer ica
Veteran ANDY WALLACE
WINNER of the NATIONAL “ICEBORN FRANCHISE GIVEAWAY FOR VETERANS” Ice House America, the pioneer in automated ice vending technology, has announced that Andy Wallace, of Seymour, TN, who has won the “IceBorn Franchise Giveaway for Veterans” contest had his grand opening this month in Knoxville, TN. Andy was one of 10 veteran finalists from across the United States vying to win the IceBorn franchise by producing a 2-minute video. Wallace was awarded an IceBorn “House” franchise, a freestanding, 24/7, automated retail ice and water destination offering water and ice that is filtered, clean and made on demand -- valued at $118,000. For the final round of the contest, each of the top 10 finalist veteran videos from across the country, including Andy’s were posted on FaceBook for public voting. In addition to the FaceBook voting aspect of the contest, finalists were also judged based on a phone interview and their overall video score based on creativity, compelling personal story and ability to apply military experience to business ownership. Wallace served as a U.S. Army Intelligence officer in the 82nd Airborne Division and is the past President of the Seymour Rotary Club and the Sevierville BNI Chapter. He and his wife Lori both grew up in north Knox County and now
Franchising USA
“As a veteran, Andy has learned those necessary skills needed to run a business.” resides in Seymour, Tennessee where they are the proud parents of two children.
“As a veteran, Andy has learned those
necessary skills needed to run a business
and embodies the entrepreneurial spirit so important to being successful in today’s highly competitive market place,” says Pete Cotter, Ice House America CEO. “Ice House America is honored to be supporting veterans like Andy who
are already established and for those
currently in a life changing transition
going from the military to civilian life. An IceBorn vending franchise gives
veterans the opportunity to own their own business and helps make this a reality
by offering a veterans’ discount through
the International Franchise Associations’ (IFA) VetFran program.”
About Ice House America: Ice House America, headquartered in Jacksonville, FL and founded in 2003, already has more than 2,700 installed and independently owned ice house locations in 27 states. There are over 100 corporate-owned Ice House locations, with the balance independently owned and operated. In addition to being chosen as “Top New Franchises to Watch” in 2014, landing on Entrepreneur’s 2014 Franchise 500 list, IceBorn was named a 2013 Military Friendly Franchise by Victory Media, publisher of G.I. Jobs and Vetrepreneur. For more information regarding Ice House America ownership opportunities, please visit http://www. veteransbusinessservices.us/productitem/ice-house-america/
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Meghan Conroy Florkowski, Institute for Veterans and Military Families
V-WISE
Worthwhile and Special “What makes V-WISE worthwhile (“special”) is the female veterans and military spouses attending and a group of instructors and speakers who are committed to their success, in and beyond the classroom.”
Meghan Conroy Florkowski
On a Monday afternoon when the phone rings with a prospective veteran or military spouse on the other end, curious about the V-WISE program and whether it’s the right fit, the first question is often, is V-WISE worthwhile for me? My response is less than simple - typically a series of questions to garner where they might be in their entrepreneurial journey. When we come to the end of this first conversation, more often than not, they are enthusiastically ready to get started. Another question that is often posed is what makes V-WISE special? I always
Franchising USA
feel at ease with my response here. In thinking about what to focus on with this article, I realized that the reason why some might use the word “special” to describe the program is the very same reason why prospective participants are eager when we finish our call and why we’re about to embark on our 10th program this summer with a full schedule of events on the horizon through 2016. So what’s so “special” about the V-WISE program? I put the question out to our team of instructors and speakers to allow for you to hear from the folks who are committed to the success of our participants and understand truly how “special” they are. Through their words, I think you’ll be able to assess if V-WISE is the right fit for you and understand why we’ll do our very best to keep the V-WISE program going as long as it is needed. I also encourage you to read on through a few of the many testimonials that have come in over the life of the program.
empower and educate the amazing women veterans of this country who have served to protect and defend our freedom and our democracy. They have helped ensure that our country remains a place where anyone can do anything with their lives, and can create financial freedom for themselves through entrepreneurship. We have them (and all vets) to thank for their service and sacrifice, so it is such a great honor to get the chance to share my knowledge and expertise with them.”
In the words of V-WISE instructors and speakers:
Thomas Kruczek, President of Notre Dame College, V-WISE instructor - “I love teaching at V-WISE because the participants are so focused and driven and they understand fully the hard work that will be required to launch and grow their own business. The participants also come to the sessions with many of the skills necessary to succeed, thanks to their time in the military. And, I love working with the veterans and family members of V-WISE because so many of them are also trying to find ways to give back to their fellow vets or to other individuals or groups that are in need.”
Jessica Eaves Mathews, CEO and Founder of Leverage Legal Group and Untoxicating Beauty, V-WISE speaker - “I greatly enjoy and am so honored to teach at V-WISE because it gives me a chance to inspire,
Scott Nadzan, Vice President, Marketing and Sales, V-WISE instructor - “A V-WISE participant is a passionate and fledgling entrepreneur, preparing (not parading) to take the next step in their lives.”
Nell Merlino, Founder and President, Count Me In for Women’s Economic Independence, V-WISE speaker - “A V-WISE participant is interested in serving her country and community. She has the focus and discipline to be successful. She is open to learning about new skills, opportunities and techniques to grow businesses. I have met women with category disrupting products who are changing their sectors.”
And in the words of our participants who expressed similar feelings for the program and their passionate instructors and speakers: Nichole Bluemle, CEO Back To The Box, LLC, V-WISE Denver 2013 – “I attended the Denver VWISE conference and found the education and motivation provided to be invaluable. I had bootstrapped to get my business started before the conference but was really lost in terms of marketing especially with regards to making the most of information technology and social media. Since the course I have been diligent in my social media campaign and using a blog and strategic online advertising which has boosted SEO so that potential customers become aware of our existence.” Stephanie Brown, Founder, The Rosie Network, V-WISE Denver 2014 - “With the sea of resources and programs available to veterans and their families, it is hard to identify those few that stand
heads and shoulders above the crowd this is one of those! From the material presented to the quality of the speakers, you leave this program with the knowledge that the VWISE team has done their homework and is 100% committed to your success. It goes without saying this is one of the best investments you’ll make in yourself and your business.” Trisha Barrett, Candle Soap Bar, LLC, V-WISE San Diego 2012 – “V-WISE gave me the push that I needed at just the right time. It empowered me as a female and gave me the confidence to kick start my company. I’ve never felt so empowered and proud to be a female business owner.” Sandra Olgletree, Satani, Corporate Cycle Consulting, V-WISE Jacksonville 2013 – “Participating in this program allowed me to network with others and gave me the opportunity to think beyond the scope of limitations. Our company was selected as Small Business of the Year 2013 through the Charleston County Council Small Business Enterprises and was one of six finalist for 2013 Charleston Metro Chamber of Commerce Small Business of the Year. Going through this program allowed our organization to soar to new heights and we are still flying towards our next milestone.” So simply put, what makes V-WISE worthwhile (“special”) is the female veterans and military spouses attending and a group of instructors and speakers who are committed to their success, in and beyond the classroom.
The V-WISE experience consists of three phases of training and ongoing support: Phase 1: This 15-day online learning experience is designed to teach participants the “language of business,” instruct students how to understand opportunity recognition as it relates to growing a sustainable venture, and present actionable strategies related to new venture creation.
Phase 2: The conference phase of the V-WISE experience is a three-day training offered to cohorts of 200 women at locations across the country. The conference includes more than 20 distinct modules of training, designed for both new business owners and to support the needs of existing ventures. Delegates are exposed to successful entrepreneurs, CEOs of Fortune 500 companies and leaders in government. Upon completion of this phase, participants will receive 2.7 continuing education units from Syracuse University (documentation is required).
Phase 3: Following the conference, graduates are connected to ongoing support and community-building opportunities focused on small business creation and growth. This resource network includes both SBA-provided supportive services,
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Veter ans in Fr anchising
Meghan Conroy Florkowski, Institute for Veterans and Military Families
COSTS & LOGISTICS The program is offered to qualified participants for a one-time $75 registration fee. Participants are responsible for their transportation costs to and from the on-site conference location. The cost of the program, meals, and lodging during the conference are funded through a cooperative agreement with the U.S. Small Business Administration and the IVMF’s private-sector partners.
ABOUT THE INSTITUTE FOR VETERANS AND MILITARY FAMILIES (IVMF)
“V-WISE is open to all female veterans, active duty female service members and female partners/spouses of active service members.” including Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), Veterans’ Business Outreach Centers (VBOCs), Service Corps of Retired Executives (SCORE) offices, as well as services provided by the IVMF and other IVMF partners to include American Corporate Partners (ACP), BoeFly, and Kiva Zip.
PROGRAM METRICS & OUTCOMES As of January 2014, over 1,000 female veterans, transitioning female service members, and female military spouses have taken part in the V-WISE experience. Based on post-training assessments, the impact of the V-WISE experience has been overwhelmingly positive. Program assessment metrics include: • 97% of program participants reported the V-WISE online courses to be useful and appropriate for their needs.
Franchising USA
• 59% of V-WISE graduates have
launched a new venture, or report a
positive impact of the program related to growing an existing venture.
• 96% of program participants reported
their overall experience at the V-WISE conference to be positively related to their business needs.
• 95% of program participants reported high satisfaction ratings regarding
V-WISE content, instructors, guest speakers and staff.
ELIGIBILITY V-WISE is open to all female veterans,
active duty female service members and
female partners/spouses of active service
members and veterans who share the goal of launching and growing a sustainable
business venture. Participants may be from any branch of the military and any era of service.
The IVMF is the first interdisciplinary national institute in higher education focused on the social, economic, education and policy issues impacting veterans and their families post-service. Through our focus on veteran-facing programming, research and policy, employment and employer support, and community engagement, the institute provides indepth analysis of the challenges facing the veteran community, captures best practices and serves as a forum to facilitate new partnerships and strong relationships between the individuals and organizations committed to making a difference for veterans and military families.
APPLY We operate on a rolling admissions basis, therefore early application is highly encouraged. Apply online at: vets.syr.edu/vwise
QUESTIONS (315) 443-4629 - vwise@syr.edu
Bio Meghan Conroy Florkowski is responsible for the management, coordination and administration of the IVMF’s V-WISE and Operation Endure & Grow veteran entrepreneurship educa¬tion and training programs. She holds a bachelor’s degree in engineering psychology with a minor in systems engineering from the U.S. Military Academy at West Point and a master’s in exercise science and health promotion from California University of Pennsylvania.
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Veter ans in Fr anchising
Precision Au to Ca re
Precision Auto Care , Inc. is proud to announce its
VETFRAN Program for all United States Veterans! Our Veterans Transition Franchise Initiative (VETFRAN) program enables you to pay an initial franchise fee of $10,000 on signing a Franchise Agreement.
“Our franchisees have played a major role in the success of Precision Tune Auto Care.”
Precision Tune Auto Care is the right franchising concept for the times. Precision Tune Auto Care began as a small tune-up shop in Beaumont, TX and has grown to 350 service centers operating in six countries. We are a recognized world leader in the automotive service industry. Our service centers perform diagnostics, scheduled maintenance and auto repairs. Our brand proposition can best be described as a successful combination of “customer care” and “car care” services. On top of all that, higher gas prices work to our advantage as people are servicing and repairing their vehicles instead of purchasing new ones. Of course, our franchisees have played a major role in the success of Precision Tune Auto Care. To help our franchisees operate successfully and to meet the challenges of today’s marketplace, we provide them with proven operating systems giving them every opportunity to succeed.
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Our value proposition includes (but is not limited to) the following: • 35+ Years of International Franchise Success • World Class Management, Sales & Technical Training • Turn-Key Marketing & Advertising Programs • National Vendor Partnerships • Proven Proprietary POS System
• 24/7 Intranet Community • National & Local Support • Powerful Brand Proposition • Proven Business Model • Continuous Research & Development U.S. and international franchise
opportunities are currently available. For more information visit: www.precisiontune.com
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info@highervisibility.com
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V E T ER A NS I N FR A NCH ISI NG
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Veter ans in Fr anchising
Jim Mingey, Veterans Business Services
Franchise Broker vs Consultant vs a Hybrid?
Are there Pricing G u a r a n t ees f o r V e t e r a n s in Franchising? In the business world, having the right skills and abilities is essential to starting and running any business including franchises.
Veterans are no different in regards to
needing those skills to be successful in
the franchise marketplace. They expect
no different treatment because they were
Veterans but usually get it anyway because of their responsible nature and their
commitment to excellence which makes
them great franchisees. Veterans interested
in the franchise marketplace are just as savvy as any other franchise candidates and must be thorough about their franchise selection process. So why do they need a franchise broker or consultant to get their deal done? What are the advantages, disadvantages and economic considerations for selecting either or neither? Are there really any guarantees on price and service? So what’s the difference between a franchise broker and consultant? Although each franchise transaction could benefit from either a “Consultant” or a Franchise Broker, for purposes of this article, we define a Franchise Broker as someone who has a contract with a franchisor and receives a fee from that franchisor if your transaction closes. A Consultant solely represents your interests and receives a fee directly from you for his/her advice. Often both Consultant and Franchise Broker roles are erroneously used interchangeably and Franchisor Broker fees are typically framed as free because their paid by the franchisor.
“As everyone knows the term free often has its price. The “price” you pay in your transaction may be that your receive limited exposure to other franchise opportunities.” Franchising USA
As everyone knows the term free often has its price. The “price” you pay in your transaction may be that your receive limited exposure to other franchise opportunities because your Franchise Broker doesn’t have a contract on that opportunity and/or simply doesn’t promote it to you or compare it to other similar ones. With a Consultant you typically pay upfront or at least on an ongoing basis for trusted advice. In either case there are “costs” to your transaction. So even if a Franchise Broker has multiple contracts with various franchisors there’s ultimately going to be some bias towards those franchise companies. There’s nothing sinister about that as long as it’s disclosed to you. So the Veteran’s job is to illuminate and mitigate any bias and still get professional advice you desire or alternately pay for a Consultant you trust directly. Whether you choose a Franchise Broker or a Consultant or neither, you should do so because you believe that decision can add to your process of selecting the most suitable franchise for your ultimate success. Third party industry knowledge and due diligence experience can be critical for your selected franchise idea. Many Franchise Brokers/Consultants do have in depth and real time knowledge of what’s happening in the marketplace for your particular opportunity and your prospective franchisor selection right now, not last year. And if they don’t they must be able to develop a credible plan to guide your own due diligence toward a rational go/no go decision. In the end you are ultimately responsible for your own due diligence. Franchise Brokers/ Consultants will of course want to get to know you; to qualify you and undoubtedly have one or more conversations with you over the phone. They will ask about your previous business experiences and your goals for business ownership. At that same time you should be asking them direct questions about all fees and how they or you might benefit and how they will obtain the best prices
and values for you. What sort of financial advantages can they provide on a franchise acquisition? What sorts of discounts on franchise fees may be available directly from Franchise Brokers?
Discounts outside of the Franchise Broker’s Franchise Directory Veterans have earned the right to benefit from any and all incentives available to them in the franchising marketplace. All Franchise Brokers should perform research to find out what additional franchises incentives are available to the Veteran outside their typical contract relationships, not only discounts through great programs like VetFran.
Jim Mingey
battle” but getting that price guarantee wouldn’t be a bad thing either.
For more information about VBS Services and Guarantee’s Click Here
At Veteran s Business Services (VBS) we always agree to research any and all potential Veteran franchisor opportunities that are pledged to supporting Veterans. VBS, as part of the Veteranscorp.org social enterprise, commits to do this whether it earns a fee or not.
www.veteransbusinessservices.us
VBS believes all Franchise Brokers must be willing to reach beyond their own in-house Franchise Directory to support Veterans in franchising. VBS connects Veterans to any and all opportunities they choose and also provides a guarantee that the Veteran will receive the best prices for franchise fees available in the US marketplace. VBS is also committed to the continuing success of Veterans we have placed in franchises by providing ongoing marketing support and pledging at least 20% of our franchise broker revenues directly to the Veterans we place.
Veteran raised from a proud military
Whether a Veteran chooses to work with a Franchise Broker or a Consultant or pursue a hybrid approach to due diligence and price negotiation, at the end of the day that Veteran makes all the final judgment calls about the best deal for him/her. And even if a hybrid arrangement for Veterans might offer good advice and a price advantage too, making that decision comes down to a matter of trust. So it might make sense to work with someone who has “borne the
VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the Veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment(VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for Veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for Veterans in franchising. For further information visit: www.veteransbusinessservices.us
Franchising USA
Veter ans in Fr anchising
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Veter ans in Fr anchising
Inter im H ealth Ca re
Veteran Couple Continue to Serve with Interim HealthCare marriage, they have shared the priority of making a difference in peoples’ lives and helping those less fortunate. Their multiple deployments with the Department of Defense at military installations across the globe, with Jason as a firefighter and Maribel as the office manager for base operations, has uniquely prepared them for the next step in their life journey. The two recently purchased an Interim HealthCare franchise and this spring began providing in-home personal care and support services to patients in the Los Angeles/Santa Monica area.
Jason Bracer Jason Bracer joined the U.S. Air Force in 1994. After aptitude and job placement testing indicated a strong propensity for managing disasters as well as a strong instinct for helping others, he was assigned to work in the fire department.
Little did he know that career trajectory would be the best thing that ever happened to him and having this skill set would take him all over the world. “That training put me in a direction
Franchising USA
“We wanted to continue doing the same line of work and keep serving the public,” Jason said. “With my expertise in mitigating and managing emergencies and managing emergency teams in just about any situation, it was natural to move into home medical care.”
Profile
and path of serving the public and responding to peoples’ needs,” Jason said. “Something goes wrong – you name it and people call 911. And we have to figure it out. It made me grow as a person.” Since leaving military service in 1998, Jason has worked all over the world as a firefighter / fire captain in civilian fire departments. He’s served as a firefighter in places like Kosovo, Bosnia, Hungary, Kuwait, Iraq (Baghdad-Green Zone) and Kyrgyzstan. And all the locations, except Iraq since it was a combat zone, he’s had the good fortune to have his wife working alongside him. Throughout their 13 year
Jason said that about 80% of calls that come into 911 are for medical emergencies. And of those 80%, a very high number require responding to seniors living in their own homes or in assisted living facilities. “I’m in my element,” he said. “The difference now with Interim HealthCare is that when I go to do an assessment, it’s more of a relaxed home environment instead of an emergency situation.” Maribel, a veteran of the Army Reserves herself, brings vast experience in office administration stateside as well as from overseas. Together, the team hopes to grow their new franchise to make a bigger positive impact on their community. For more information visit: www.interimhealthcare.com
“Something goes wrong – you name it - and people call 911. And we have to figure it out. It made me grow as a person.”
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Veter ans in Fr anchising
Vetera n N ews
Veteran Franchisee is
the voice for Veteran Franchisees Everywhere Franchising USA
“The idea of owning a business seemed appealing, but he did not know how to get the ball rolling.” Business Opportunities.” Franklin testified on behalf of The International Franchise Association’s VetFran, which supports Veterans and military spouses to enter the franchise industry as both business owners and employees.
From Honor to Owner After leaving the Navy in February of 2012, Franklin was looking for employment opportunities. Franklin explains that the most prevalent prospects were corporate management jobs that many former junior officers are drawn to. He saw many of his friends take jobs in various corporations, but he did not necessarily want to go down that path. However, he also was not sure where else to look. The idea of owning a business seemed appealing, but he did not know how to get the ball rolling on starting a business, or have an original idea or product to form a business around.
On May 7, 2014 Arlington, VA UPS Store Veteran franchisee Wade Franklin testified before the U.S. House of Representatives Committee on Small Business. Franklin and the other panelists discussed “Military to Entrepreneurship: Private
Sector Initiatives to Help Veterans Pursue
While searching for veteran opportunities, he came across VetFran, the International Franchise Association’s veterans transition program, and saw the financial incentives that hundreds of franchise systems offered to veterans who opened franchise businesses. One of the franchises that most appealed to Franklin was The UPS Store, who also offered to waive their $30,000 franchise fee for the first ten veterans approved as franchise owners in 2012. In addition to their generous financial incentive for veteran franchise owners, The UPS Store also partners with the USO, IFA, and Georgetown University to offer the Small Business and Franchise Management program to educate franchise executives and owners on franchising. Franklin noted that, a brand with an excellent reputation that was so actively recruiting veterans as franchise owners was obviously an appealing choice.
Franklin applied to become a franchise owner of a The UPS Store in January 2012 and was approved for a franchise the next month. He was one of the ten veterans that had their initial franchise fee waived. With nearly one million veterans transitioning out of military service over the next five years, it is more important than ever that we help veterans re-integrate into the civilian economy. Our service men and women are looking forward to rejoining their families, going back to school, or starting their own businesses. It is both an economic necessity and a moral obligation for our country to facilitate this transition.
Veterans and Franchising – A Good Fit Franchise systems have complex yet effective operations guidelines, and the franchise owners that can best execute the system are the owners who can realize the most success in their businesses. Many of the qualities that make successful franchise business owners are found in our nation’s service men and women, while the training techniques used in the military provide a significant skill set that is especially valuable in franchise owners. The attention to detail, situational awareness, and communications skills I learned in the Navy also translate very well to business ownership, and I don’t think I could have learned those skills better in any other environment. Above all else, veterans possess the leadership skills necessary to run a successful small business, and to persevere through tough times to keep that business running. For these obvious reasons, franchise companies actively recruit veterans as franchisees, knowing that veteran-owned franchises tend to out-perform other locations. Wade Franklin’s full testimony can be found at the following link: http://smallbusiness.house.gov/ uploadedfiles/5-7-2014_franklin_ testimonyfinal.pdf
Franchising USA
Veter ans in Fr anchising
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ex per t advice
Jeff Lefler, CEO, FranchiseGrade.com
When Resear Much Should
The simple ans as much as yo Investing in a franchise is one of the biggest investments most people make in their lifetime. For most first time Franchisees, it rivals the purchase of a house. Based on our research of over 12,000 Franchisee surveys and 1,200 Franchise Disclosure Documents, a few stark facts are present. 19 percent of franchisees were not profitable last year, and 31 percent of franchisees were unsatisfied with their franchise investment. That research indicates that a franchise can be a rewarding experience, but there are investment risks. To minimize that risk, a prospective franchisee must perform their due diligence to
“Investing in the right franchise system can be personally and financially rewarding. Investing in the wrong franchise system can cost you personal and financial hardship.�
Franchising USA
rching a Franchise, How I Spend on Due Diligence?
swer is: ou need to! find a successful franchise investment opportunity.
the time upfront to find the best investment for you and it will pay off down the road.
What does due diligence mean when searching for a franchise?
Hard work
Due diligence involves the research to gather information about the characteristics of a franchise system in preparation for an investment. It is the attention a reasonable person takes to review the investment to avoid harm. Due diligence and the steps taken are optional for every investor. If you were buying a house, you can decide to use a real estate agent, to hire a home inspector, or use a lawyer. There are a number of similar due diligence options when researching a franchise investment.
What due diligence options are out there? Time Take time to properly investigate a franchise. Expect the process of narrowing down an investment to take at least three months. Expect another 6-12 months before you open your location. A franchise is a 10+ year investment. Take
As a franchisee, you will need to work hard to build your business. You should tackle your due diligence with the same work ethic. Perform you own independent research, search for the franchise on Google, Twitter, Facebook, etc. Follow the brand to see what messages are communicated through social media, and what the responses from consumers are to those messages. Search for consumer reviews on the brand from Yelp or another website. Reading Ask franchisors for their Disclosure Document and Agreement. Read it! As hard as the read may be, take the time to read it and do your best to understand it before you visit a lawyer. If a franchisor does not provide their FDD or Agreement, you can find it online. Franchisees Speak to existing and former franchisees. Ask a lot of questions to both groups such as: Would you invest in the franchise
Jeff Lefler
again? Are you profitable? What problems have you encountered? Why did you pick this franchise system? What is your opinion of the franchisor? Does the franchisor respond to your concerns? You will find contact information in the FDD. Call as many franchisees as you can. Make a list of all franchisees, and systematically call each one. Leave messages, call back, and continue to reach out until you are satisfied with the answers you receive and can understand the general consensus of the franchise network Franchise professionals Seek the help of a franchise consultant or a company that reviews franchises. Someone with industry knowledge that can provide insights into various aspects of a franchise that you may not be aware of. Consultants can range from $150 per hour to $3,000 for a preset franchise system
Franchising USA
ex per t advice
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ex per t advice
Jeff Lefler, CEO, FranchiseGrade.com
“Seek the help of a franchise consultant or a company that reviews franchises, someone with industry knowledge that can provide insights into various aspects of a franchise that you may not be aware of.� analysis. Using franchise brokers may not cost you anything, but be aware that they may get paid by franchisors. To ensure a professional is working for you, you must pay them. Accountant Review any Item 19 financial performance representations. Review franchisor financials to ensure the franchisor has positive cash flow and ensure the franchise system is financially healthy. This can cost around $2,000 to do a thorough analysis of Item 19 and a franchisors financial statement. Lawyer You should have already read the FDD andAgreement. Have a lawyer review, and ask them any questions you have based on your review. This may cost between $2,000 and $4,000. If there are specific concerns within the Franchise Agreement, your lawyer may be able to negotiate on your behalf. If you are attempting to negotiate the Franchise Agreement, your legal expenses will increase. Walk away One of the hardest things for a prospective franchisee to do is walk away from a franchise system after performing their due diligence. But that is exactly why you go through the steps above. If, during the process, something does not feel right, or certain concerns arise, either address them with the franchisor and/or your lawyer, or do not invest into that franchise system. Investing in the right franchise system can be personally and financially rewarding. Investing in the wrong franchise system
Franchising USA
can cost you personal and financial hardship. A due diligence investment of your time, your hard work and potentially $5,000$10,000 is the cost to minimize your investment risk and find the right franchise system for you.
Author Bio: As the CEO of FranchiseGrade.com, Jeff understands that there is no Silver Bullet or sure-fire, simple way to pick a guaranteed franchise system winner. However, by using a little science and a lot of hard work, Jeff and the team at FranchiseGrade.com have developed a sophisticated research, analysis and comparison model to help potential
investors and existing Franchisees assess a realistic value for any franchise system relative to others. It’s called a Franchise Grade. With over fifteen years of small business experience and ten working in franchising as a multi-unit Franchisee, consultant and Franchisee Association President, Jeff has a good understanding of the level of hard work, dedication and commitment that drives a successful franchise system. As part of his ongoing involvement with the industry, Jeff also served as a Member of the Strategic Committee of the International Association of Franchisees and Dealers. For more information visit: www.franchisegrade.com
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For more information, visit LittleCaesars.com for Franchise Opportunities in your area. Or call 800-553-5776 to talk with a Franchise Licensing Advisor 1 Based on net number of stores added, 2008-2012. 2 Nation’s Restaurant News, June 24, 2013. 3 *“Highest Rated Chain - Value For The Money” based on a nationwide survey of quick service restaurant consumers conducted by Sandelman & Associates, 2007-2012 ©2013 LCE, Inc. 42569
Franchising USA
Spotlight o n Serv ice by Rob S w ystu n
K imco Realt y
Kimco Realty C
has Driven Franchising into the Fast L
The company adapted to the demands of a fasterpaced world in 2011 and launched FastTrack Franchise, a program that allows franchisors to preapprove retail locations for potential franchises. Kimco then markets these pre-approved locations to interested entrepreneurs via its website. When franchisees are choosing a location for their business, they can simply
Franchising USA
choose one from the list of pre-approved sites, saving the time of submitting a location to the franchisor that might not be approved. The FastTrack Franchise program accelerates the site-selection, approval, and leasing process for everyone involved at no extra cost. “FastTrack presents franchise operators with the opportunity to expand their portfolios using their own tailored site selection criteria, rather than franchisee preferences,” Kimco Director of Portfolio Reviews Kimberly Covino said in a recent interview. “Furthermore, the pre-approval of locations leaves the guesswork out of the equation for the potential franchisee
– they can easily browse a list of spaces they know will work for the franchise they would like to open, removing some of the roadblocks to an eventual store opening.” Kimco is in the perfect position to run the program, as it owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. Headquartered in New Hyde Park, NY, the company currently owns interests in 732 shopping centers comprising of 103.4 million square feet of leasable space in the U.S. Developing the FastTrack program involved creating a database of all the
Corp.
“The FastTrack Franchise program accelerates the site-selection, approval, and leasing process.” who want to run their own business, but may not be sure where to start, Covino said. For these entrepreneurs, franchises are a great option. And with Kimco’s vast selection of available retail space and its connections in the franchise community, the company is helping pair ambitious, talented entrepreneurs with businesses that are looking to expand their reach through franchising.
Lane.
“What sets Kimco apart from its competition,” Covino said, “is that entrepreneurs get to skip a lot of needless steps in setting up their franchise.”
active and growing franchises throughout the country, along with information on their particular site selection criteria. The company then cross-referenced this information with Kimco’s internal database of available retail space and associated data points to develop a list of potential spaces tailored to each franchise. The company then contacted the target franchises to gauge their interest in the program, and reviewed the list of Kimco availabilities that were a fit with their location criteria. If Kimco’s shopping centers were in markets that the franchisors were interested in and the available space was
ideal for them, they pre-approved those centers for their concept. Today, Kimco has over 20 franchises on board with over 100 pre-approved franchise locations across the U.S. These franchises include: Anytime Fitness, Great Clips, Pearle Vision, UPS Store and Moe’s Southwest Grill. For franchisors looking to join the program, Covino said, Kimco has over 800 properties to choose from, with excellent demographics, heavy foot traffic, and prime visibility. FastTrack Franchise is catering to the growing demographic of entrepreneurs
“For potential franchisees using FastTrack Franchise, they’re not getting the average site-selection experience, where typically there would be a lot of back and forth between the franchisee and franchisor in trying to find a location that’s a fit for the concept,” Covino said. “Instead, using our simple web tool, potential franchisees can select the franchise they are interested in, and browse pre-approved sites within the Kimco portfolio, without worrying whether or not the franchisor will accept the location. Alternatively, interested entrepreneurs can browse by location and see which franchises have pre-approved spaces in their desired area.” For franchisors, the FastTrack team conducts custom portfolio reviews to produce a tailored list of current and upcoming availabilities in Kimco’s portfolio of high-quality locations, based on the franchisor’s specific criteria. Potential franchisees are invited to explore Kimco’s FastTrack Franchise database of pre-approved franchise space at www. FastTrackFranchise.com Franchisors looking to join the program are encouraged to contact Kim Covino at: P: (516) 869-7174 E: kcovino@kimcorealty.com.
Franchising USA
Spotlight o n Serv ice by Rob S w ystun
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fr anchiso r in depth
Sher pa K ids
International Expansion with Local Engagement
team s Kid a a p ic Sher h Afr t Sou
As Chief Sherpa at Sherpa Group, Vicki Prout is well placed to spot a great franchise model when she sees one. Vicki’s background and subsequent rise in the world of global franchising is a unique story. After joining the Navy and with over a decade of serving the Navy and her country, Vicki decided she would enter the small business arena. Starting with a pet food delivery company, buying a local promotional products business, then taking the step of developing that in the UK for four years, and then moving on to become the International Development and Marketing Director for Cartridge World. It was in this position that Vicki gained invaluable insight into the world of franchising, growing the Cartridge World franchise from 436 stores to over 1600 stores in 42 countries. Building from principles learnt in the defence force and over 15 years’ experience in the franchising sector, Vicki established Sherpa Group in 2009. The company draws on Vicki’s in-depth understanding of relationship building, team orientation, franchise recruitment marketing, brand development, strategic development and implementation, and has seen her earn accolades including as FCA
Franchising USA
National Chair for Women in Franchising as well as being voted SA Franchise Woman of the Year for a record four years. With hands on experience and a wealth of knowledge to draw upon, Vicki has experienced franchising at all levels and is well versed to the challenges faced in business expansion. Sherpa Group were tasked with the role of completing an Australian market entry analysis for New Zealand based franchise, sKids – Safe Kids in Daily Supervision to ascertain the feasibility and viability of bringing this well-known Kiwi company to Australian shores. With the knowledge that she gained from this analysis about sKids and knowing its growth potential, using the famous ad slogan from Remington back in the 1970’s, Vicki says, “I liked it so much I bought the company.” In reality Vicki became the major shareholder AU, and has since become equal director with Dawn Engelbrecht from sKids NZ for the international rights – operated, staffed and resourced from her local offices in Adelaide.
Sherpa Kids Australia Vicki explains, “I proudly became the Master Franchisor for Australia in July 2011 and worked part time building the model and completing all required documentation, whilst at the same time ensuring that Sherpa Group continued to thrive. “It was hard work combining and juggling the two roles but also exciting and extremely valuable to my consulting work as I was living through the advice that is given to my clients, every day. This has made me a stronger consultant as I experienced the ebbs and tides of the franchise journey every day.” Twelve months after combining the role of consultant and franchisor, the first Sherpa Kids franchisee was on board and the business has since grown. Vicki continues, “Numbers tell half the story of what we’ve achieved in our first two and half years in a market with entrenched competitors in both the
commercial and community sectors. “Launched mid-2011, we have representation in eight countries and support 22 Australian franchisees, three Area Developers and 25 on-site outside school hours care service (OSHC). Customers from over 600 families currently send 1000 children to us for 2600 sessions per month. “Between 2012 - 2013 the business doubled in size and will double again by the end of 2014. “The other half of our story is showing you how we achieved this success so quickly. We chose the business model of franchising to change the OSHC provider landscape. After preparatory research we could see the Australian market was stale and unprepared for the launch of the National Quality Framework reforms in January 2012. Franchising was the answer.” Sherpa Kids is values driven. If you love the business and you agree to do your best to follow the tried and tested rules for running an OSHC business, they: • grant you the right to run a copy of the business • show you what you need to do • give you the tools to do the job • support you in your efforts to do it. In return franchisees pay a fair price for the brand, goodwill, extensive training and operational support and should aim for a healthy return on their investment from as little as $35,000 plus GST for a greenfields territory. The franchisee purchases an area known as a cluster - approximately 8 - 10 primary schools. “Choosing local people as our franchisees is part of our success and ultimately their success. Our group is extremely multicultural and all diverse with their own attributes.” Sherpa Kids have working mums who’ve experienced or witnessed firsthand the problems associated with a lack of quality after school care through to ex-lawyers, practising accountants and
recently teachers have joined the network. “Many take an interest in the business that is larger than the balance sheet. We are, after all, working with children and families. Local franchisees are best placed to engage with local stakeholders, from the school principal to the fresh fruit merchant. Local franchisees empower the brand at a local level, where their customers live. They develop trust, which grows market share. They are the true community citizen” says Vicki. Vicki had the realisation during her research that many people were receiving their Certificate III in Childcare and then some growing bored in the industry. “Sherpa Group has coined the phrase ‘HUMAN AGRICULTURE’ by this we mean WE GROW PEOPLE . We constantly adapt this adage and ethos with Sherpa Kids via our business model. We are providing people the opportunity to potentially grow and enhance their own personal development and if they wish own a business in an industry they are extremely passionate about. Our staff, our franchisees staff can work within the business day to day but at the same time are trained in elements such as marketing, finance and business skills they can utilise throughout their working career.” We wish to be known for the service that serves its community. Not be known for the number of services we have! Our brand has a massive heartbeat this is underpinned by local heartbeats and little people heartbeats!
Worldwide Focus Over the next 12 months, Vicki and business partner Dawn Engelbrecht will be building on the development of Sherpa Kids International as this adds value to the existing business partners by strengthening the global brand. Focusing on North America, Sherpa Kids International are looking for State Masters in the USA and Area Developers for Canada and are looking for people who can build upon the worldwide success of Sherpa Kids.
Franchising USA
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Sher pa K ids
With Master Franchisors already in place in the UK, Ireland, and South Africa alongside Australia and New Zealand, Business Franchise magazine was able to speak with each Franchisor to discover why Sherpa Kids is so unique.
John Geers, Sherpa Kids UK “Sherpa Kids England was incorporated in October 2012, operating two After School Clubs in the London Boroughs of Barnet and Redbridge and opening a third in the London Borough of Harrow in April, after a recommendation received from the Head Teacher of one of the original two, just six weeks into operation. “There are millions of working parents in England who do not have the flexibility in their working hours to drop their children off and collect them from school at the times when schools open and close. During the school holiday period they are either forced to take time off work or pay for expensive child-minders. Breakfast, After School and Holiday Clubs provide a cost effective solution for parents because of the economies of scale that come with looking after children in a group setting. “Sherpa Kids England has an offering unique due the fact that our operating model is a combination of best practice from several countries under the Sherpa Kids banner. In practice this means that the standards of care and the experiences planned for the children by Sherpa Kids greatly exceeds that required by law in the UK. Furthermore, 2014 will see UK legislation relax standards even more – thus making the Sherpa Kids model a clear leader when it comes to quality out of ours school care.”
Dawn Engelbrecht, sKids – Safe Kids in Daily Supervision NZ “Safe Kids in Daily Supervision (sKids) started in 1996 and I took over with my business partner Bev in 2006. We were originally franchisees in the system (Bev since 1998, myself since 2000) so we had a clear vision of what the brand could do and where we wanted to take it. As of today we have 55 franchisees operating at 118 locations in New Zealand.
Franchising USA
“Local franchisees empower the brand at a local level, where their customers live. They develop trust, which grows market share.” “There is an increasing need for both parents to bring in an income and most working hours do not accommodate school hours which tend to be a shorter day (i.e. 9-3) and parents want to know that the people looking after their children are well trained professionals who put their child’s needs first. “Our strength is that we are local providers offering a local service on-site at their local schools backed by a National Support office. “We ensure that there are a variety of planned activities each day for the children to participate in as well as healthy afternoon tea and homework time and have recently launched two new services; sKids Active which is a sports based life skills programme and iHub which is out of school care designed for tweens so our focus over the coming months will be to grow these services across the country.”
Genevieve Allen - Sherpa Kids South Africa “As one of only a few female franchisors in South Africa, I want to lead and inspire other women to take up the challenge of running their own businesses. After working in the education industry for 20 years, I have a passionate commitment to learning in South Africa. “As such, I was keen to join this tried and tested franchise business and offer an out of school hours programme that works. Sherpa Kids aims to establish quality onsite OSHC programmes throughout Southern African primary schools. These programmes are structured, engaging, fun and educational with an emphasis being on stimulating child care and not passive child minding. Sherpa Kids brings South African parents internationally benchmarked, structured and standardised offerings for before school care, after school care and care during school
holidays. Sherpa Kids has licenced, fully accredited sites in Australia, New Zealand and the United Kingdom that are successful stimulating child care systems that have been running for over 15 years.”
John Miles – Sherpa Kids Ireland “Following months of research I quickly came to the conclusion that the Out of Hours School Care market in Ireland was at best fragmented and at worst nonexistent. This definitely, for me, was the business opportunity I had been looking for – the chance to be the first mover in a fragmented market offered the challenge and potential rewards that I craved. “My first hurdle to jump was to answer the question of branding – how was I to take full advantage of this situation in the shortest possible time frame? It would take years to build up a recognised brand and the processes and procedures of running a business involving childcare looked onerous. I searched instead for a proven provider operating in another country and that is when I came across Sherpa Kids. It provided me with everything I required – a recognised international brand, set up support, business support and a whole set of rigorous process and procedure guidelines. “On my return to Ireland after meeting with the team in Adelaide I was good to go and feel extremely confident at this early stage of development that I have been provided with the tools and ongoing support that will be the cornerstone of a brand new service in the Irish market place.” To be a part of this exciting franchise opportunity in Australia or overseas contact: E: vicki@sherpa-kids.com.au W: www.sherpa-kids.com.au
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I began my journey with Sherpa Kids wanting to do something worthwhile in my community. I’m not a salesperson but I love talking to Principals and Governing Council members about Sherpa Kids.
Sherpa Kids will work and engage with all stakeholders to ensure continuous learning that meets children’s needs. We pride ourselves on creating a nurturing and caring environment for the care of your school-aged children. We do this through a structured and well-balanced program in before, after school and vacation care services. Become a Sherpa Kids Country Master Franchisee and make an investment on two levels. Your new life will be rewarding financially and personally as you help school communities and franchisees achieve their business and lifestyle goals. Each member of the Sherpa Kids Franchise System has an important role to play. The success of every individual Franchise strengthens the Sherpa Kids brand. A growing Franchise System means greater marketing and advertising power, more brand awareness, higher market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies. Already operating in 4 countries – Australia, New Zealand, South Africa, England and soon to be Ireland.
Enquire about international business opportunities with Sherpa Kids Phone Vicki Prout on +61 439 803 078 or email vicki@sherpa-kids.com www.sherpa-kids.com
Franchising USA
ex per t advice
Scott Brandt, Vice President, SurePayroll, Inc.
Shark Tank Test Your Startup If you haven’t seen Shark Tank, it’s a reality show where entrepreneurs pitch their businesses to millionaire and billionaire investors, such as Dallas Mavericks owner Mark Cuban and the “Queen of QVC” Lori Greiner. If the investors and entrepreneurs strike a deal, the investors offer cash in exchange for an equity stake in the company. Franchising USA
“You’ve got to be quick on your feet, because just like on Shark Tank, you often only get a few minutes (or seconds) to make your case.” test” it. Here’s some of the typical tests contestants have to pass, and you should too:
• What are your profit margins?
st
• Can your business be easily replicated?
The potential investors often grill the entrepreneurs on whether or not their
business is sustainable, how it’s marketed and whether or not it will stand up to the competition. While there isn’t much to learn from many reality shows, Shark Tank actually offers some valuable insights to new franchise owners.
So as you look to grow your franchise and possibly expand into multiple locations, it might be a good idea to “Shark Tank
It’s a simple formula for how profitable your product or service is, but an essential one to consider. How much money does it cost to produce your product or service and how much is your target consumer willing to pay to buy your product or service? The smaller your profit margin, the more units you need to sell to grow profits. Is that realistic for your business and/or market?
Shark Tank investors are quick to attack a business that, once it takes off, can be easily duplicated by bigger competitors that typically have cost and process efficiencies versus small businesses. You need to think about not just whether or not you’re filling a specific niche in the market, but how difficult it will be for competitors to move in on that niche once they see what you’re doing. Effective business leaders should be constantly focused on key differentiators as well as barriers to entry the market space.
Scott Brandt
your offering. Understanding how to effectively reach your target market can make all the difference. Just because you have a website and advertiser on Google doesn’t mean consumers will find you.
• When you pitch your business, do you know your stuff?
If you’re trying to sell your services to a big client, you better be ready to answer the questions above and anything else that’s thrown at you. You’ve got to be quick on your feet, because just like on Shark Tank, you often only get a few minutes (or seconds) to make your case. One pause could cost you a deal.
• Can you sell yourself?
Great products and services are a must, but as the face of your company, you have to make people believe in you too. Often the contestants who get deals on Shark Tank are the ones who appear to have the tenacity and drive to live, sweat and breathe the business 24/7.
• How will you market your product or service?
In business, just like in the Shark Tank, you need to be prepared.
Scott Brandt is vice president of marketing at SurePayroll, Inc. For more small business and payroll tips, visit our blog at http://blog.surepayroll.com.
Your business model may be great, but how will you take your product/service to market and how will consumers find you when they have a need for
Franchising USA
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prof ile
H y pox i
Hypoxi
a Highly lucrative franchise The Hypoxi business chain has already proven to be a highly lucrative franchise business in over 50 countries and now it aims to break into the United States in a big way. The company’s representatives in North America — headquartered in Charlotte, NC — are optimistic about the opportunities for Hypoxi that abound in the market.
But, what exactly is Hypoxi? Not a gym, not a fitness center and not a weight loss plan, Hypoxi is a body shaping system that uses low impact exercise, special vacuum and compression equipment and nutrition to target problem areas on the body like fat pads on the stomach, hip, buttocks and thighs. It also reduces cellulite and weak connective tissue. The key to the Hypoxi method is that it uses lipid metabolism to reduce these pesky fat deposits on the body, which traditional methods of dieting and strenuous exercise cannot. The method was developed in the 1990s by Dr. Norbert Egger in Salzburg, Austria and while the details of how it works can get a bit technical, it’s the results that people are interested in. Typically, a person will come into a Hypoxi center and undergo treatment for six to eight weeks coming in two to three times per week. She will be
Franchising USA
guided by a licensed Hypoxi coach to use the equipment and follow a specified nutritional plan.
Head of franchising Mark Street explained a common scenario in a recent interview from the Charlotte headquarters. “I’ll give you the best example I can. Sometimes you get women in who are getting ready for a wedding. So, you’ve got the bride and the mother of the bride and the wedding is in eight weeks and they want to look good,” Street said. “The mother has spent $2,000 on her dress and the bride has spent however much she’s spent on her dress and they don’t mind spending a few hundred dollars to look good in those dresses in that finite amount of time.” Typically, a customer will get the look they want after an eight week session and be done with the program. With Hypoxi, people can lose a dress or pant size in this short amount of time and reshape their bodies so they’re more to their liking without a lot of strenuous exercise. It’s this ease of use and the quick results that has propelled Hypoxi’s success in the 50 countries it’s already present in. Street, business partner Warren Bickers and Mandelynn DeLuca the company’s head trainer, are eager to see Hypoxi have similar success in the USA. Thus far, Hypoxi has just two studios open in the country in Charlotte and Houston and are in negotiations with a possible franchisee in Los Angeles. While the brand has been State-side since 2010, the studios that are here were operating mostly independently. The Charlotte studio has been folded into the company and the Houston studio will be
soon. Hypoxi only started looking for franchisees in the US this year.
“Someone who would be a good fit for a Hypoxi franchisee,” Street said, “is a woman who has a high interest in owning and operating her own business and who really cares about how her business changes people’s lives.” “Since the clientele for Hypoxi is primarily women,” Street noted, “the company is specifically targeting women as potential franchisees in an owner/ operator format.” The company is open to welcoming more investment-type franchise operations in the future. Becoming a franchisee is a simple process once a person is approved. The new franchisee provides a $5,000 deposit and does her due diligence to look for an appropriate location for the studio. Once a location is chosen, the contracts are finalized and the new franchisee visits Charlotte for a few days of training there. The training then continues at the new location for another few days. “So far,” Street said, “there has been a lot of interest from potential franchisees, as the health and beauty industry continues to boom.” “For women who are looking for more than just profit, Hypoxi allows them to offer a service that makes customers genuinely happy,” Street said. “The gratitude that customers display when they see their results is the real draw to potential franchisees.” And with Hypoxi just getting its franchising arm up and running in the American market, now is the right time to get involved. For more information visit: website: www.hypoxi.net
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HYPOXI® is the „Targeted Body Shaping“ concept that is taking the world by storm. The HYPOXI�METHOD® is an all natural (no surgery, no pills or crazy diets) program that many celebrities around the world have used for years to burn stubborn fat, tone skin and reduce the appearance of cellulite. Amazing results are achived from the combination of gentle exercise and targeted vacuum/compression treatment. The concept was developed in Austria in 1998, and now many thousends of customers use our studios every day in over 50 countries. Franchises are now available. Total investment $250k-$350k, required cash +$125k. Special programs available for 1st movers.
Check us out at www.HYPOXI.com
Be a HYPOXI®studio owner - e-mail mark.street@hypoxi.com or call 980-721-7293 Franchising USA
focus
Fresh C oat Painter s
Fresh Coat Painters
picks up where overwhelmed spouses leave off “We are the only paint franchise that does not use subcontractors... we use all our own employees.” Fresh Coat has been able to increase its business, as people value spending their time doing other things rather than tackling projects like painting. Bernie Brozek
Bernie Brozek, president of Fresh Coat Painters, said he reads a lot of the messages the company’s franchisees get from potential customers and those overwhelmed spouses are a boom for business. “It’s funny,” Brozek said in a recent interview from the Fresh Coat headquarters in Cincinnati. “A typical one will read: ‘Dear Fresh Coat, my husband started the project and, unfortunately, a year later he hasn’t finished it’.” But, a lot of people turn to Fresh Coat for their painting projects just to save themselves time, too. “The service is inexpensive,” Brozek said, “so rather than doing it themselves, people are quite willing to hire professional painters.” Even during times of recession, he noted,
Franchising USA
“Often people will misjudge how much work actually goes into painting a room and they’ll start a project only to call in the professionals later, much like the aforementioned spouses. For certain kinds of painting, like exteriors, special equipment is required.” Fresh Coat does all kinds of painting for customers. If they want stripes, sponge painting, or they want cabinets painted, Fresh Coat will do all that. And if customers want help with their paint designs, Fresh Coat will connect them with the company’s main paint supplier, Sherwin-Williams, which has design centers to help customers choose colors and help them with paint designs.
10 Years in Business Fresh Coat has been around for a decade and has been franchising for seven of those 10 years. Brozek himself has been with the company for four-and-a-half years. With 30 years of experience in the franchising industry, Brozek has worked for Pepsico and was COO of Sport Clips. With 120 franchises across North America, the company does interior and exterior painting of both residential and commercial properties.
“We are the only paint franchise that does not use subcontractors,” Brozek said. “We use all our own employees.” “The best thing about hiring permanent employees rather than sub-contracting, is that the permanent employees take great pride in their work because they are with the company long-term and they share in the responsibility of doing good work.” Hiring its own employees also allows the company to perform background checks on employees to ensure they’re not sending any unsavory people into their customers’ homes. “We do a lot to make sure the person entering your house is a solid person,” Brozek said. That’s not to say that the franchisees themselves have to be painters. While the company does hire professional painters to put color to wall, franchisees come from a multitude of backgrounds. The main criteria they should meet is to be business savvy. “Fresh Coat has a lot of veterans and women as franchisees, plus a lot of people who came from sales positions and other business backgrounds. Sometimes a person is looking to switch careers out of necessity or just to get into a new field and Fresh Coat gives them a great opportunity to do that” Brozek said. The franchise is in 27 states, spread
Brad Jennings from Centennial, CO
heavily throughout Texas, the northeastern US and Florida and has just gotten into the Canadian market. The company also has interest from overseas, which it is exploring.
Ryan Fred
regill from
Des Moine
s
Franchisee Support “In order to help its franchisees stay competitive, Fresh Coat has an operations manager for every 25-30 franchisees. Typically with franchise businesses, there will be one operations manager for 50-100 franchises, so Fresh Coat’s level of support is above average.” The operations managers are responsible for making sure the franchisees stay profitable. They make sure the brand is being represented properly and they drum up business for franchisees. When someone is approved for a franchise, they first start with Fresh Coat’s Jump Start program. With this program, the new franchisee is getting their website together and already getting interest even before they start their training. It lasts for about two weeks and franchisees do this training themselves at home, learning about internet marketing and how to promote their business to potential customers.
Rich Whitaker from Clarksville, TN
they come to Cincinnati for a week of hands-on training. After that, they receive ongoing training and support on a monthly basis. Franchisees can get started with Fresh Coat for under $50,000, Brozek said, because it’s home-based, meaning there’s no capital costs for a physical location.
Fresh Coat represents a great opportunity. “Franchising is great for people who have
that desire to become an entrepreneur, but who want a turnkey system that works,” he said.
And, as long as there are overwhelmed
spouses and unfinished painting projects
“I like them to have leads coming in, people wanting quotes while they’re still training,” Brozek said.
Some franchisees do grow to a point where they require a location, but everyone starts off from home.
out there, Fresh Coat will have an endless
Once they’re website is up and running,
For business-minded people, Brozek said,
www.freshcoatpainters.com
supply of business.
For more information visit:
Franchising USA
focus
Page 87
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
Maximizing your
Franchise Expo Experience “The goal is to walk out with as much quality information as you can gather.” you will walk by have names you may not be as familiar with. You may find that these brands that are new to you are where some really interesting opportunities lie to grow a brand in your area.
George Knauf
This is it, the next step in your American Dream may be in that room! You’ve registered, collected your name badge and are ready to get to work as an eager franchise seeker at the International Franchise Expo. You walk through the doors and realize just how big the task at hand is. In front of you is a grid of over 400 exhibitors, mostly franchise companies with some suppliers mixed in. The goal is to walk out with as much quality information as you can gather as you plan the next big stage in your career. That matrix of exhibitors includes some household names, but a lot of the booths
Franchising USA
Each exhibitor will be trying to draw you in so that they call tell you about their opportunity. For some it will be to simply make eye contact and say “hello”. Others will approach the day with the skill of a seasoned carnival barker. They have paid a considerable sum to be there and every person that walks past their booth without talking to them is a lost opportunity to add a franchisee. The early temptations will be to stand in line for the frozen yogurt, ice cream, pizza and other food samples. Keep in mind, though, you probably know what all of those foods taste like and standing in line limits your time and the number of people you will be able to talk to. If you are interested in those concepts it may be well worth skipping the line and go straight to their sales people to get some questions answered. To sort the field a bit, since it will be hard to have an in depth conversation at every booth, you will want to have a good idea of what your model looks like. You Model Quick Check (not a complete model, but a few highlights): • Are you very management minded or a sales pro? • What kind of employees would you be comfortable working with?
• How many people are you comfortable managing? • Do you want to have weekday business working hours or are evenings, weekends and holidays acceptable work days for you too? • Will you be running the business full time or looking for something where you can be hands-off? • How do you want to grow your portfolio over time, brick and mortar or territory based? It is a pretty natural inclination to begin sorting by those concepts that you have had consumer experiences with. For most potential franchise owners that will make more restaurant brands in the room familiar than probably anything else. Keep in mind your model as you start sorting. The experiences you have had as a consumer may be very different than the role of the owner. Look at concepts that fit how you enjoy working.
Working the room I always suggest to my candidates to work the room in an organized fashion so they don’t miss anything, go row by row and walk the length of those rows, sometimes great companies are late registrants and have booths in the back of the room. Given the sheer size of the expo it may also be a good idea to get a copy of the exhibitor floor plan and circle anything that is on your personal hotlist. I also tend to work with my candidates to get them connected to funding sources to get some
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
idea of what kind of funding they would have access to for starting their business. In addition to stopping at the booths with brands you recognize, stop at some with names that are new to you. This is an exploration and learning process, take advantage of being able to talk to these franchise sales teams face to face.
Off you go to explore As you look at the rows, the prime spots for exhibitors to lease tend to be at the front end of rows and often towards the entry doors or center of the room. You may see exhibitors that leased multiple booth spaces for grand sales displays or to do demos of food or other items. Those large booths get a lot of people to come in and sign up to talk to one of their salespeople, but don’t limit yourself to those alone. Having done a number of these shows in years past myself, I can tell you that it is not just the big booths, free food or gift giving displays that are worth stopping at. My challenge to you would be to suggest
Franchising USA
that you stop at maybe two booths (or more) in each row you might be inclined to pass on and ask them how they fit your model. Maybe you find a perfect fit that you weren’t expecting. Conversation starters when stopping at an exhibitor’s booth: • Are you looking for new franchisees in my desired area? • How many franchisees and committed locations/territories do you have in my area now and how many are you planning to have?
disclosure document? • Tell me about your training and support systems If you are able to work past preconceptions, keep your model in mind and not get tied up in lines for samples you ought to be able to gather some great info. While only a small cross section of all available brands are here, it is a great starting point. I hope to meet you at the show. Introduce yourself if you see me!
• Are you registered in all states? (If not, why not)
Mr. Knauff is a highly sought after trusted advisor to many companies; Public, Independent and Franchised, of all sizes and in many markets. His 20 plus years of experience in both startup and mature business operations makes him uniquely qualified to advise individuals that have dreamed of going into business for themselves in order to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution.
• What are your total start-up costs and do you make an earnings claim in your
For more information: Website: www.georgeknauf.com
• Who are your target customers and how do you acquire them? • What does a day in the life of one of your franchisees look like? • Tell me about your optimum franchisee, do they fit my model? (then tell them about your skills, strengths and how you want to work)
Page 91
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Franchising USA
ex per t advice
Larry Katzen, Entrepreneur, Businessman & Author
Is Corporate Culture Part of Your Business Plan? Former Executive Lists 4 Cultural Values & Behaviors of Successful Companies Did you include a section describing the workplace culture and the steps you’ll take to foster that culture? “When you look at why businesses fail, it almost always has something to do with the culture,” says Katzen, author of, “And You Thought Accountants Were Boring - My Life Inside Arthur Andersen,” www.larryrkatzen.com.
Larry Katzen
Whether you’re launching a new business or wondering why your existing company isn’t performing as well as predicted, longtime corporate executive Larry Katzen suggests taking a careful look at your business plan. Franchising USA
“For nearly half of the startups that fail, incompetence is cited as the major cause, according to Statistic Brain. Tolerating – or not tolerating – incompetence is part of corporate culture.” Katzen, a former managing partner at one of the world’s top five accounting firms, said his experience taught him a great deal about what kind of culture results in successful businesses. It was sadly ironic, he says, that Arthur Andersen, which held integrity chief among its values, was wrongly convicted of fabricated accusations related to the Enron scandal. The Supreme Court eventually exonerated Arthur Andersen, but the damage was already done. “Today’s business leaders cannot leave
culture to chance,” Katzen says. “They must decide what values and beliefs will form the foundation of their company, and they must ensure those values are integrated every day through example, communication, policy and incentives.” He lists four cultural values and behaviors your company must have to be successful:
• Integrity – from the top down From the executive level to part-time support staff, each individual must adhere to a code of values and ethics that’s based on doing the right thing, Katzen says. “It’s absolutely essential that you and your managers make decisions based on honesty and fair play. When appropriate, take the time to explain to employees the reasoning behind big decisions, to reinforce that they’re made in accordance with ethical considerations.” Have a consistent, well-publicized policy for dealing with integrity breaches among employees, and a zero tolerance policy for breaches among management. Managers and executives who don’t adhere to company values will sabotage the culture.
“CEOs with firmly held values conducive to an energetic, thriving workplace will naturally and unconsciously create a great corporate culture.”
• A positive perspective at the executive level The business leaders set the tone for the company, and if executives or managers have negative attitudes, especially in times of crisis, employees will, too. “You and your employees are not just doing jobs, you’re on a mission to improve people’s lives with the product or service you provide,” Katzen says. “The team that embarks on a mission with no hope of achieving that mission will not achieve it.”
• Be a leader in the office and in the community As a business leader, you should take an active role in working with organizations that benefit the community. Find ways to encourage employees to volunteer time as well, even if it’s a corporate project to which you allow each employee to dedicate a certain number of their payroll hours. “We’re all more gratified when we know we’re contributing something meaningful to the greater good,” Katzen says. “And remember – healthy communities grow healthy businesses.”
• Make health and well-being a company priority Employees who exercise regularly, make healthy lifestyle changes and get regular checkups and vaccinations are doing you a big favor. They’ll be more productive and energetic and you’ll have less absenteeism. Make it easy for employees to schedule time for doctor visits, especially if you have a 9-to-5 office. Have health fair days, where employees can get free screenings and flu shots. Reward trips to the gym, weight loss, smoking cessation and other healthy choices with drawings for prizes. And keep in mind, this is already a value among millennials – the teens to early 30-
somethings who will soon make up half the work force. “They’ll enjoy being a part of that culture,” Katzen says. “Sometimes,” Katzen says, “CEOs with firmly held values conducive to an energetic, thriving workplace will naturally and unconsciously create a great corporate culture. But those who take time to think about the culture they want, spell out the details and exemplify and communicate them have a greater chance of success.” “Make it part of your business plan, because it’s as important as anything else in that plan.”
About Larry Katzen After graduating from Drake University in 1967, Larry Katzen started working at Arthur Andersen and quickly rose through the ranks to become the Great Plains Regional Managing Partner. An honorable, hard-working man who devoted his life to Arthur Andersen, Larry was there from the company’s meteoric rise to its unjust demise. He stayed with the firm for 35 years, serving clients globally until 2002. He recounts his experiences in, “And You Thought Accountants Were Boring - My Life Inside Arthur Andersen,” (www.larryrkatzen.com).
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ex per t advice
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