Franchising USA - April 2014

Franchising usa T he ma g a z ine for franchisees

VOL 02, ISSUE 06, apr 2014

$5.95 www.franchisingusamagazine.com

Pizza Studio

o ut s h ine s t h eir C o m p etiti o n

MULTI UNIT

franc h i s in g

M A I N F E AT U R E

REAL ESTATE AND FRANCHISING LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 2, ISSUE 6 APRIL 2014 publisher: Colin Bradbury. colin@cgbpublishing.com

EDITOR: Jessica Spoto. editor@cgbpublishing.com

SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com

Business Development Manager: Jenn Dean. jenn@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: PIZZA STUDIO

CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 250 590 7116 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

Editor April is a great month to get inspired. With spring in the air, it’s the perfect time for new beginnings.

This issue of Franchising USA has been designed to provide you with all the tools and knowledge you will need to turn your inspirations into business goals, and ultimately help you find a franchise.

Featuring Pizza Studio on the cover, this business is offering amazing opportunities for entrepreneurs to join the company’s all-star roster with a turnkey business that is spinning heads. Looking back to his beginnings, co-founder and CEO Samit Varma founded a business that was based in his roots. Opening the fast-causal customized pizza shop in January 2013, the brand currently has six open locations and over 175 restaurants with major franchisees in development.

“We are growing but we will serve the same product, the same way, everywhere.

I think that’s the hallmark of a good franchise system,” says Varma.

April’s Special Feature on Real Estate franchises discusses the various types of employment opportunities available, and the benefits of owning a franchise in this sector, while the Franchisor in Depth articles cover Total Woman Gym + Spa, and Young Rembrandts. Different concepts with similar success, these executives reveal the requirements and opportunities to franchise. On the other hand, the Franchisee in Action articles

spotlight franchisees from 3 Potato 4 and Dr. G’s Weight Loss & Wellness, both these individuals have joined an iconic brand have never looked back.

April’s Veterans Supplement includes a cover story on Meineke Car Care Centers.

Committed to providing Veterans with franchise opportunities, through the VetFran initiative Meineke has to date approved over $800,000 in discounts.

“The average discount per Veteran is $7,500, which means we have done well over 100 licenses with Veterans,” says Dave Schaefers, Senior Vice President of Franchise Development of Meineke. The supplement also profiles various franchise opportunities while offering advice for Veterans returning to the civilian workforce.

In this issue you will also find advice from industry experts for growing your franchise, steps for reviewing franchise directions, questions to ask regarding the training process, and tips for validating a franchise. This valuable knowledge can take you far when opening the doors to the franchise world, so you won’t want to miss out!

As you read through the April issue I hope you find a spring in your step to pursue your franchise goals. A new beginning awaits; it’s time to turn your dreams into a reality.

Wishing you a wonderful month, Jessica Spoto Editor, Franchising USA

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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april 2014

35

On the Cover 10 Cover Story

Pizza Studio Serving Tasty Franchise Opportunities

62 Multi Unit Franchising

Dan Martin, IFX Online

35 Feature

70

Real Estate and Franchising

26

20

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Contents

In Every Issue

Franchise Profiles

06 Franchising News Announcements from the Industry

14 Money Mailer

35 Feature Article

Real Estate Finding a Home in Franchising 43 Veterans Supplement

On the Cover Meineke

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42 Rapid Realty

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16 The Questions A Potential Franchisee Should Ask

About Training Robert Bilotti, Novita Training

40

Expert Advice

20 To Validate Or Not To Validate David Banfield, The Interface Financial Group

26 The Case For Franchise Directories Adam Heitzman, HigherVisibility

62 Multi Unit Franchising Dan Miller CFE, IFX Online

68 5 Tips For Ensuring A Desirable Lifestyle Bob Epperly, Author, Growing Up After Fifty

28

40 Downsized Into Your Destiny George Knauf, Franchoice

70 EB 5 Capital Ronald Fieldstone, Arnstein & Lehr LLP

Franchisee in Action 26 Dr. G’s Weight Loss and Wellness

Franchisor in Depth

60

64 3 Potato 4

22 Young Rembrandts 72 Total Woman Gym and Spa

Have Your Say 32 Massage Envy Spa Franchising USA

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what’s new!

Old Chicago Pizza and Taproom Opens First Carolinas Location in Chapel Hill Old Chicago also brings its craft beer enthusiasm to Chapel Hill by showcasing up to eight local beers at any given time. Featuring a draft system with 36 beers on tap, this ensures the highest quality beer delivery system available today and a comprehensive “TaproomGuide” that lists all the restaurant’s beer offerings.

The 6,800-square-foot restaurant, including outside and patio dining, also features 16 televisions for prime sports viewing, while providing 80 new jobs in the local economy.

Old Chicago Pizza & Taproom recently opened its first restaurant in the Carolinas, located in downtown Chapel Hill. The location marks the first Old Chicago restaurant to be built from the ground-up since launching its new expansive menu and design concept.

Introducing Chicago-style pizza along with an expansive menu,

“As the first Old Chicago restaurant in the Carolinas, the Chapel Hill opening represents not only a commitment to expansion into new markets, but also into our new menu, restaurant design, and elevated guest experience,” said Will Powers, Senior Director of Marketing, Old Chicago Pizza & Taproom. “We look forward to exploring additional expansion into the Southeast.”

Four to six Old Chicago restaurants are scheduled to be built this year and 15 more planned in 2015.

For more information: Website: www.oldchicago.com.

Lift Brands Continues Global Growth Initiative with Snap and 9Round Company Adds Senior Vice President of Worldwide Franchise Development Lift Brands, the largest health and wellness franchise company in the world, recently announced plans to increase its international franchise footprint in 2014 and beyond. Hiring Scott Schubiger as Senior Vice President of Worldwide Franchise Development, Schubiger will lead both the domestic and global expansion efforts.

“Lift Brands is focused on growing our family of brands around the world, especially the Snap Fitness 24/7 and 9Round brands, and we’re aggressively

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looking to attract new master franchisees who can operate a high number of clubs simultaneously around the world,” said Peter Taunton, founder and CEO of Lift Brands.

franchise that grew from 30 clubs to more

Snap Fitness currently has more than 2,000 clubs already open and operating in 15 countries and has master agreements signed in Australia, New Zealand, Singapore, Thailand, Hong Kong, Philippines, Indonesia, Malaysia, Egypt and Mexico. In addition, Snap recently acquired a significant investment stake in 9Round, a rapidly expanding kickboxing

Canada in 2014.

than 100 in 2013, with an additional 200

openings planned for 2014. International expansion for 9Round is planned for

Mexico, Australia, New Zealand and In February 2014, Lift Brands was

introduced as a parent company to a

family of fitness-focused brands, which

includes Snap Fitness, 9Round, Fitness on Demand, STEELE 365 and Kosama.

For more information:

Website: www.liftbrands.com/

Leading Supplemental Education Center Welcomes New CEO Chip Miller Brings a New Level of Leadership and Passion to Brain Balance Achievement Centers Brain Balance Achievement Centers, a leading supplemental learning education center implementing a drug-free approach to help children between the ages of four and 17 overcome learning and behavioral challenges, recently announced that it has named Chip Miller as the new Chief Executive Officer.

An expert in the industry with extensive education and business experience, Miller brings with him decades of knowledge from nationally recognized brands to the Brain Balance Achievement Centers Team.

“With Chip, we have found the right

CEO to take Brain Balance Achievement Centers to the next level,” said Dr. Robert Melillo, Founder of Brain Balance Achievement Centers. “As we further our development efforts and open new centers, we’ll have the chance to help even more children discover their full potential, and Chip’s breadth and depth of education and leadership knowledge is just what the company needs in this next phase of growth.”

With nearly 55 centers nationwide, Brain Balance Achievement Centers plans to open 15 additional corporate and franchise locations in 2014.

“The possibilities with Brain Balance Achievement Centers are endless, and I look forward to joining such a dynamic and ambitious organization with such a clear and focused vision to improve the lives of children with learning and behavioral challenges,” said Miller. “I was attracted to the company’s core values, combined with the team’s collaborative approach to better the brand.”

For more information: Website: www.brainbalancecenters.com.

Pearle Vision Re-Licensed 27 Neighborhood Eye Care Centers in 2013 Leading Optical Brand Plans to Convert Additional 40 to 45 Centers in 2014 Pearle Vision, one of North America’s largest and most trusted licensed optical brands, recently announced it has signed agreements with new and existing Pearle Vision licensees, converting 27 neighborhood eye care centers from company-owned to licensee-owned in 2013. The company plans to continue this re-licensing effort in 2014 with the conversion of additional centers.

“Converting 27 of Pearle Vision’s corporate locations to local optometrists and investors was quite an accomplishment for the brand last year,” said Pete Bridgman, Senior Vice President and

General Manager, Pearle Vision. “We owe our progress and success to the 10 new and 17 existing licensees, who see the growth potential with Pearle and have a desire to serve their communities and provide the best possible eye care to their patients.”

With 600 centers located throughout North America, Pearle Vision offers best-inclass eye care provided by neighborhood doctors who are skilled optometrists, a principle created by Dr. Stanley Pearle in 1961. Most recently, Pearle Vision ranked #112 in Entrepreneur’s 2014 Franchise 500, making a 48-point increase from the 2013 ranking.

To fuel further growth, the company is looking for optometrists interested in licensing opportunities. Pearle Vision licensees can expect their initial investment to build a new center to cost approximately $200,000, in addition to a licensing fee of $30,000.

For more information: Website: www.licensing.ownapearlevision. com.

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what’s new!

A Closer Look Reveals Valuable Results From Pizza Industry Survey A Closer Look (ACL) recently completed and unveiled the results of an intriguing survey regarding a variety of consumer practices and insights about the growing pizza industry. The study lasted 10 days and included more than 2,000 responses from pizza-eating consumers.

Examining the preferences and trends of the pizza restaurant customer, the survey was designed to help restaurateurs better understand the habits of those who support their industry. Here are some examples of the findings: • ACL found that on average, consumers

eat pizza three to four times per month, but 40 percent of people eat pizza at least once a week or more.

• A whopping 89 percent of those surveyed eat their pizza at dinnertime, and 80 percent prefer to get their pizza via takeout or delivery.

These are compelling conclusions for operators looking to expand their carryout service, especially in the fast-casual and quick-service segments where the highest traffic is typically during lunch hours. Another part of the study focused on the factors that are most influential to consumers when deciding which

restaurant to choose for ordering dine-in, take-out or delivery pizza. One industry key, online reviews don’t play a significant role in consumer restaurant preferences. In fact, online reviews are ranked as one of the least important factors to consumers.

For more information: Website: www.a-closer-look.com

Travel Agent Wins National Business Award In Celebration of Women’s History Month CruiseOne honors female franchisee with OPAL Award for leadership and community service

CruiseOne celebrates Women’s History Month in March by honoring a female CruiseOne Vacation Specialist and Franchise Owner with the OPAL Award for Women. The company has named Tina Hogue the 2014 recipient of this prestigious award.

The OPAL Award recognizes a female

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franchise owner who demonstrates Outstanding Performance And Leadership.

The honoree is active in community and civic organizations, is among CruiseOne’s top selling agents, and has exhibited strong business skills. Hogue will receive three months of waived fees and a $100 gift certificate.

“Tina has been part of the CruiseOne family for six years and embodies the spirit of the OPAL Award,” said Tim Courtney, Vice President of Franchise Development at CruiseOne. “Not only is she a leader in our franchise system, but also within her local community. It is amazing how one woman can make a

difference in the community.”

Hogue has been a CruiseOne franchise owner in Wyomissing, PA, for two years, and previously worked as a CruiseOne associate for four years. In 2003, Hogue donated 100 Easter Baskets for Berks Women In Crisis (BWIC) and called the program “Easter Baskets for Berks.” Since then the initiative has grown among local businesses and churches and Hogue now donates nearly 1,000 baskets to more than five local non-profit organizations in her area.

For more information: Website: www.CruiseOneFranchise.com

Century 21 Real Estate, Google and Videolicious Launch “C21® SOCIAL XCHANGE” Marketing Suite Through an industry-first licensing agreement with Google, a co-marketing agreement with Google Adwords, and a comprehensive licensing agreement with Videolicious, the C21 Social Xchange combines a comprehensive social media marketing, communications and advertising tool suite for CENTURY 21® System professionals.

“The C21 Social Xchange empowers our independent sales professionals to easily

build relationships and grow their sphere of influence,” said Bev Thorne, Chief

Marketing Officer, Century 21 Real Estate LLC.

“Real estate is a people business, and today many business relationships begin online.

CENTURY 21® agents are the only real estate professionals to benefit from such a partnership with Google, a recognized leader in relationship marketing.”

The agreements with Google provide Century 21 sales associates in the U.S. with a license for Google’s social tools, and a special program to help them get started on Google Adwords Express. In addition, Century 21 System members in the U.S. will have access to an enterpriselevel license with Videolicious. The Videolicious mobile app empowers all

Century 21 System members to create professional-quality video productions and post to YouTube in seconds.

“The power of video marketing cannot be overstated,” said Matt Singer, co-founder, Videolicious. “Through this agreement, Century 21 sales associates may now leverage that power to enhance their online marketing and drive more business opportunities.”

For more information: Website: CENTURY21.com

Dunkin’ Donuts Announces Plans For 46 New Restaurants With Existing Franchise Group, Sizzling Donuts, LLC More Than 150 Standalone Dunkin’ Donuts Planned for California Over Next Several Years Dunkin’ Donuts recently announced the signing of a multi-unit store development agreement with existing franchise group, Sizzling Donuts, LLC, for 46 new restaurants throughout the greater Sacramento metro area and surrounding cities of Stockton, Modesto, Tracy, Manteca, Placerville and Davis, CA. Over the past year, Sizzling Donuts, LLC has signed multi-unit store development agreements to develop more than 60 new Dunkin’ Donuts restaurants throughout Northern Utah, Denver, Colorado and Texas. The group currently operates 17 Dunkin’ Donuts restaurants in these markets.

“The power of the Dunkin’ Donuts brand is truly incredible. With our plans to develop more than 100 Dunkin’ Donuts restaurants over the next several years, we feel our restaurants will play an important role in the daily lives of people who live, work and visit the southwest and western states,” said Ted Morton, Chief Executive Officer and President of Sizzling Donuts’ parent company, Sizzling Platter, LLC. “We are excited to bring Dunkin’ Donuts’ high-quality coffee, sandwiches and baked goods to California, and look forward to breaking ground on the first of many California locations.”

development last year, the company has executed store development agreements for more than 150 new free-standing restaurants. Franchise opportunities still remain available throughout California with plans for as many as 1,000 restaurants throughout the state.

For more information: Website: www.DunkinDonuts.com.

Since opening California for franchise

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Pizza Studio:

Serving Tasty Franchise Opportunities Creating made-to-order pizzas, Pizza Studio is serving up tasty franchise opportunities. Inviting guests to create their own custom pizzas from the highest quality ingredients at an affordable price, the fast-causal concept is now turning heads.

Founded by CEOs Samit Varma and Ron Biskin, Pizza Studio was built from heart, passion, and a whole lotta expertise. Pizza Studio recently changed its name from The Pizza Studio.

Treating every guest with genuine hospitality, the experience begins with choosing from an array of artisanal crusts including the traditional thin crispy crust, whole grain & flax seed, rosemary herb, spicy firecracker, and gluten free.

Next adding specialty sauces and freshly grated mozzarella, shaved parmesan, crumbled feta or goat cheese; toppings include premium meats and freshly roasted the veggies. Making way down the assembly line, pizza artists use all natural, cruelty and hormone free ingredients.

“We are growing but we will serve the same product, the same way, everywhere. I think that’s the hallmark of a good franchise system.�

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“It’s important to be able to customize pizzas because the chances of two people wanting the exact same toppings are very slim,” says Varma.

A fan favorite, “Create Your Masterpiece” allows guests to treat themselves to an 11-inch pizza featuring unlimited toppings for just $7.99, while the “Starving Artists” selections are only $5.99. All pizzas are baked within minutes in a high-heat, conveyor belt convection oven to ensure top quality and consistency.

Born and raised in New York, Varma spent much of his childhood eating and making pizzas in the family kitchen. “My Mom would always make a big ball of dough to cut into smaller ones for the kids.

My brother, sister and I would always get to pick our own toppings to build something we loved,” he recalls.

Attending the Naval Academy in Maryland, Varma earned a bachelor’s degree in chemical engineering and completed a post-graduate study in nuclear engineering. Spending the next eight years assigned to Trident Submarine the USS Nebraska, here Varma served as the Systems Weapons Officer. After leaving the military he attended the University of Southern California (USC) where he earned an MBA. Working next at a software startup company, he later partnered with one of West Coast’s most successful venture capital firms.

In search of a new project Varma evaluated thousands of business plans, before deciding to go back to his roots. “I saw the success of other build-your-own concepts and thought there should be one for pizza,” he explains.

After plenty of research and brand development, Varma then met up with Ron Biskin, a veteran of the restaurant industry.

With over 30 years experience with big brands including Burger King, TGI, Baja Fresh, and Wolfgang Puck, Biskin partnered with Varma to further explore

the concept and set quality and operations standards. Destined to franchise, Pizza Studio’s model was built for speed, simplicity, consistency, and scalability.

“We spent an entire year getting every aspect of operations completely right. We have a high-output system that results in a consistent product every time,” explains Varma. “Everything about the process has been tested and tried with thousands of data points… the crispness of the pizza, the fold-ability, the heat, even the size of the bubbling.”

Positioned to be at the forefront of the fast-causal pizza category, Pizza Studio’s unit economics are a major attraction for potential partners. “The simplicity of operation and consistent quality of the product drives franchisees who have done their due diligence to choose us,” says Varma. “We are growing but we will serve the same product, the same way, everywhere. I think that’s the hallmark of

a good franchise system.”

Opening the first location outside of the USC campus in January 2013, the response has been amazing. With six locations currently open, Pizza Studio has over 175 restaurants with major franchisees in development. Spanning the country, these franchisees come from existing brands such as Freebirds World Burrito and Red Robin. A recent agreement with Studio 37, LLC of San Jose, CA promises to develop 25 new restaurants throughout the greater San Francisco metro area. Jeff Burrill, managing member of Studio 37, also serves as the managing member of Pangenera, LLC, a multi-unit developer of Panera Bread in the San Francisco Bay area. Pizza Studio’s franchise roster also includes Zane Tankel, a large Applebee’s franchisee among others, and Lloyd Sugarman, co-founder and largest franchisee of Johnny Rockets. Sugarman has committed to opening 12 Pizza Studio

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“We’ve been able to sign up a solid group of franchisees, and we want to keep up with that quality. In the end, that’s what will make the chain successful.” restaurants in Massachusetts, Rhode Island and Connecticut. “We’re growing quickly and are pleased with the response,” says Varma.

Currently looking to expand into the east coast, Midwest, and south coast, Pizza Studio offers unique franchise opportunities. Looking for individuals that are experienced restaurant and multiunit operators with established brands, Pizza Studio is seeking those who have the resources for multi-unit ownership.

The estimated initial investment for a Pizza Studio location ranges from $250,000 to $500,000, including a $15,000 development fee per store and $25,000 franchise fee. Royalties are 5.5 percent of gross sales with an additional contribution of up to two percent of gross sales to a national brand fund. However, Pizza Studio also offers select, qualified franchisees joint-venture partnerships.

“We have a large pool of capital to draw from and develop stores and we are so convinced in the model that we would happily participate in individual store economics,” says Varma. “It shows confidence in the model and confidence in the operators we are choosing. We are going with quality, not quantity in our operators and we put our money where our mouth is.”

Pizza Studio’s franchising process begins with an interview followed by a Discovery Day at the California headquarters. Here candidates will have the opportunity to explore the concept and meet members of the corporate team. If both parties then agree the business is a good fit, they will evaluate available territories and determine how many units the franchisee would like to take on. Once the franchise agreement is signed the franchisee undergoes four weeks of comprehensive training.

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Covering all aspect of management and operations, franchisees are able to enlist four people for training. The first two weeks of training are hands on in a Los Angeles restaurant, while the remaining two are in the franchisee’s restaurant.

Benefiting from on-site training, a team will arrive one week prior to the store opening and stay for the week following.

Providing ongoing training through refresher courses and procedure upgrades, franchisees can count on frequent visits from corporate staff, full marketing and branding support. Franchisees are also assigned a dedicated franchise operations manager to be their core contact for anything they may need.

In addition to its rapid expansion and tremendous customer recognition, a recent Concepts 2020 research by Technomic shows that the made-to-order Pizza niche is expected to be the next hot concept in fast-causal food; the fastest growing segment in the restaurant industry.

“Franchisees are joining extremely high caliber operators within the system who are enjoying the best in class product and unit economics,” says Varma. “We’ve been able to sign up a solid group of franchisees, and we want to keep up with that quality. In the end, that’s what will make the chain successful.”

For more information: Website: www.pizzastudio.com

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prof ile

M oney M ailer

COUPONS MEAN BUSINESS! MONE Y MAILER COMPANY STORE RESALES NOW AVAIL ABLE “Company-operated territories will be re-licensed for $50,000 virgin territory price.”

Company-operated units come with existing revenue and strong brand recognition, delivering money saving offers to local consumers in the mail, on the Internet, to mobile devices and social media.

A Money Mailer franchise is an in-house ad agency resource for local, neighborhood businesses. Franchisees have an exclusive, protected territory and provide business owners with a multi-media, integrated marketing solution for pennies per household.

Company-operated territories are now available for licensing in Orange County, CA, Seattle, WA, St. Louis, MO, Austin, TX, San Antonio, TX, Chicago, IL, Jacksonville, FL, Baltimore, MD, and throughout Northern Virginia/ DC. Turnkey training, support, and lead generation are included with the $50,000 single-territory investment.

Franchisees do the consulting; Money Mailer does the rest. Once a campaign is finalized it’s sent to Money Mailer for

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ad design, production, mailing and digital placements.

Formal training starts with two weeks of classroom curriculum at Money Mailer University. Here franchisees learn how to use proprietary, web-based targeting technology, access robust marketing databases for high-impact proposals, and master a consultative process that differentiates them from everyone else “selling advertising.”

After MMU a dedicated, field-based Franchise Performance Coach spends several weeks in-territory to ensure a successful startup. Lead generation is provided along with an aggressive launch package designed for rapid cash flow.

Franchisees are predominantly homeoffice based so no storefront or inventory required.

Money Mailer is laser-focused on local, neighborhood businesses; a strategic advantage called hyper-local marketing.

This hyper-local focus originated in 1979 when the company’s founder was approached by a Chamber of Commerce that wanted to create awareness for products and services offered by local merchants. The first Money Mailer shared mail envelope was created and filled with local offers. It was an instant success!

With “saving money” as today’s consumer

mantra, the open rate for Money Mailer’s iconic red-white-and-blue shared mail envelope is at an all-time high. Consumers can also access these money saving offers online, on their mobile devices, or through social media.

The company’s direct mail business continues to grow as marketing research confirms direct mail is the most trustworthy source of information for a purchase decision, and the only media an unsolicited offer is not viewed as intrusive by consumers bombarded 24/7 with banner ads and email offers.

Dennis Jenkins, VP Franchise Licensing and a 14-year Money Mailer veteran added: “It’s the perfect time to consider this franchise. Consumers need to save money. Local businesses need our expertise more than ever.”

For more information: Website: www.franchise.moneymailer.com Phone: 888.446.4648 Email: franchiseleads@moneymailer.com

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ex per t advice

Robert Bilotti, Managing Director of Novita Training

uestion a Potential Franchisee Should Ask About Training

There are many critical conversations a potential franchisee should have with the franchisor prior to finalizing any agreement. The topic of training should be one of them. But what should a franchisee ask?

As many will tell you, to truly discover the efficacy of the training provided you must speak with the franchisor but also current franchisees.

I’ve divided the questions about training into the following categories: • Questions about the format of the training.

• Questions about ongoing training.

• Questions about the content of the training.

• Questions to ask current and/or past franchisees.

Questions About the Format of the Training If you’ve ever sat through several days of training and walked out feeling overwhelmed and retaining very little, you can understand why the format of training is so important.

Training conducted all-at-once at the

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• If no online training is offered, why not?

• What is the cost of the initial training?

ns

corporate headquarters is often the easiest method for the franchisor but not always the most effective for the franchisee. As for the format of the materials, there is no correlation between effectiveness and the weight of the binder! So bigger isn’t always better. As someone said, it’s easy to make things complex, and difficult to simplify them.

You may and should find details about the format of the training in the F.D.D. However, particularly with smaller franchisors, what’s in the F.D.D. is sometimes what the franchisor would like the training to be ideally, not exactly what exists in reality.

• First and foremost, the delivery method.

This is especially important if you are far removed from headquarters. What methods does the franchisor employ?

Such as: o In-person o Video o Webinar (‘live’ online – also called ‘synchronous’) o eLearning (‘self-paced’ online – also called ‘asynchronous’) o Coaching / On-the-Job training • How is the in-person training conducted? Such as: o Length of time o Location (at company headquarters? regionally? At your location?)

• Who should and could participate (owners, unit managers, staff, etc)? Is there an additional cost for additional people?

• What materials will be provided as reference (videos, manuals, quick reference guides, etc)? P.S. Beware if the materials are simply PowerPoint slides from the class.

• Who provides the training and what is their background/experience? Has he/ she ever run this type of business?

• Is there any assessment or a pass/fail threshold? What happens if I fail? P.S. You should want the organization to have high standards.

• Is there anything that should be done in preparation for the initial training?

• How has the training program evolved / improved since the concept was founded?

Questions About Ongoing Training Many believe the true worth of a franchisor’s training happens after you leave the classroom of the initial training.

Some franchisors are great at getting you trained to get the doors open only to have the emphasis on learning dip dramatically.

The fact is, running any business profitably is hard and complex. No amount of initial training will fully prepare you. What’s more, it’s only when you’re actually in operation that the learning will take hold, but it’s also then that the gaps in the training will show themselves.

• What ongoing training is provided throughout the lifecycle of the business?

• What will the franchisor do to assist in the actual opening of the business?

• What training is provided as new employees and managers are hired?

visit my location to provide additional individualized training? If so, how often?

• Is there a support staff to answer my questions?

• Are there regional meetings? Annual meetings? Monthly conference calls?

How are these conducted and what is covered (i.e., are they refresher courses or new content?)

• Is it an obligation to attend future training or is it optional?

• What is the expense?

• Is there a Franchise Advisory Council (a group of franchisees representing and communicating their needs to the franchisor)?

Questions About the Content of the Training Format means nothing if the content is not relevant, applicable and up-to-date. Too many times, training is theoretical instead of practical. Yes, you need the 10,000-foot view but you also need to know where the rubber meets the road! Ask to see the agenda as well as training materials to review what topics are covered and to what degree.

Topics should include both those specific to operating the concept as well as general business practices (i.e. sales and marketing). Without sales and profit, there’s no concept to operate.

• Training developed correctly should be about changing behavior, so your first question should be: What will I be able to do at the end of the training that I cannot do now?

• Does the training prepare me to run, build and sustain my business?

• In what ways does the training mimic the true “day in the life of” a franchisee?

• Some of the more critical topics the training should cover (if applicable): o Sales, sales, sales

o Is it mostly lecture or hands-on?

• Is ongoing training conducted in-person or through technology (eLearning or webinars)?

o How often are training sessions held?

• Will a representative of the franchisor

o Concept and brand

o Marketing and the myriad of topics this entails

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ex per t advice

Robert Bilotti, Managing Director of Novita Training

o Operations o Human resources, such as recruiting, interviewing and hiring o Managing and developing employees o Safety & security o Information & technology o Financial management: accounting/ P&L/cash flow o Facilities: Site selection/permits/ construction/vehicles o Office set-up • Does the learning include training from any vendors, such as software, marketing, employee benefits, etc.?

“Your first question should be: What will I be able to do at the end of the training that I cannot do now?”

• What type of ongoing training are you receiving in the field?

• Was the training realistic to what you face every day or more theoretical?

• Did the training teach you what you need to be successful in the business?

Questions to Ask Current (or Past) Franchisees

• Was the amount of time devoted to training enough to prepare you?

The franchisor may create and deliver the training but the franchisees live it. They can provide insight on what works (and what doesn’t). Try talking to franchisees that are at least a year removed from the initial training, and – if you can - reach out to them yourself rather than the list of ones the franchisor provides. You’ll want to talk to successful locations but also ones that are failing or – if you can – ones that are no longer in business. Many times, people who have failed are able to articulate more clearly why they did versus people who are successful are able to tell you what makes them that way.

• Was there ample opportunity to ask questions?

If there are ‘discrepancies’ between what the franchisor claims and what the franchisees’ perceives, this should be a red flag to be discussed with the franchisor.

Any of the above questions you may and should ask the franchisee, in addition to the following: • Was the training promised in the FDD actually delivered?

• After the initial training, did learning drop off? Did you feel left on your own?

Franchising USA

• What aspects of the training were the most beneficial?

• In what areas did you receive no training but felt you needed it?

• Did the instructor seem to know the business and your day-to-day challenges?

• If you were to start over, what could the franchisor have done differently in training to better equip you to succeed?

developed complex learning solutions in a range of industries. He is a requested speaker on a variety of learning topics, has served as an adjunct professor of writing at the Institute of Design and Technology in Chicago and is a former Advertising Agency Creative Director.

Novita Training is an awardwinning leader in franchise training development. Since 1997, Novita has helped franchise organizations craft and execute learning strategies. As a fullservice training development company, Novita specializes in creating learning that accelerates the development of an organization’s employees, new hires, franchises and customers.

For more information: Website: www.novitatraining.com

This list is not exhaustive nor addresses your specific situation, but should give you a starting point. The important thing is to not bypass the discussion about training. A comprehensive, well-developed, effective training program is one of the advantages to buying a franchise over running an independent business, and should be one of the reasons why you choose the former over the latter.

Robert Bilotti is Managing Director of Novita Training. A former Training Director for a CPG company, Robert has

Robert Bilotti

O

10+YEARS SAME STORE SALES INCREASE TOP 5 FASTEST GROWING

LOW COST initial investment &

Over

SIMPLE operations & attractive

CONCEPTS IN THE U.S.

Focused high-quality menu

600 RESTAURANTS

STRONG AUV OF $901,000

600+ STORES

LOW OPERATING costs

unit economics

Focused, high-quality menu of made-to-order classic and boneless wings

COOKED TO ORDER

*

85 PROJECTED NEW locations TO open in 2014

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.

ex per t advice

David Banfield, President of The Interface Financial Group

To Validate Or Not To Validate…

To finish the expression maybe it should read, to validate or not to validate that is the question. It may be a question, but is it an option?

What is validation all about in the franchise world? In many franchise systems the validation process is a necessary and sometimes mandatory step towards a franchise award. Franchise disclosure documents talk about taking appropriate professional, legal and accounting advice. They talk about understanding the risks of a franchise and franchise ownership; but they rarely, if ever, tell a franchise candidate that they must validate the franchise that they are exploring. It, therefore, becomes

Franchising USA

an optional matter for the individual to validate or not.

What is validation? One dictionary definition states “Validation: To establish the soundness of…” In other words, check out what you are buying before you buy it.

In the world of franchising it usually comes down to calling existing franchisees in the chosen system to ascertain how their business is going, are they happy, would they do it again, and so on - on the face of it a sound and simple approach to rounding out all of the ‘legal’ verification and review that a candidate does.

In practical terms validation breaks down to a candidate calling a perfect stranger to ask them what are often quite personal questions about their business. Why would anyone want to take such a call and, if they did, why would they part with such personal information? Maybe that’s part of the franchising culture. After all, the

existing franchisees being called were themselves once candidates and probably went through the same process. It was only the very first franchisee in the system that had no existing franchisees to confer with.

Franchises rarely come with a ‘money back guarantee’ as might be the case with a new 40-inch flat screen plasma TV. Once you have bought the franchisee, that’s it - there is no going back to the store for a refund. It makes sense, therefore, to do as much research and validation work upfront as possible.

Is the validation process going to give the same protection as a ‘money back guarantee’ - probably not, but it may be better than no validation at all. It is important, therefore, to enter into the validation process not only with an open mind, but also with a plan and an expected outcome.

“It is important to enter into the validation process not only with an open mind, but also with a plan and an expected outcome.”

Start with an open mind One of the best ways to create the open mind approach is to put yourself, as the enquirer, into the role of enquired.

Imagine someone is calling you asking for information. There needs to be a comfort zone in terms of what can be asked and responded to. Timing is also a key element in getting helpful feedback.

Depending on the nature of the franchise you need to pick your time carefully. A call at an inappropriate time may result in unsatisfactory information, even from the best of franchisees - you just caught the individual at the wrong moment. An open mind should also pre-condition you to expect to hear the good, the not so good, and perhaps even the bad. The larger the system and the size of the franchisee base, the more divergent will be the responses.

Expecting to hear accolades for the franchise from everyone that you talk to is an unreasonable expectation.

Start with a plan If you are a candidate looking at a mature franchise system, maybe with hundreds of existing outlets, are you planning to call everyone in the system? Clearly not as that would just leave you with days of work and information overload. Strike a balance based on the size of the organization maybe two or three calls is sufficient, maybe 10 is appropriate. There is no magic number providing you decide in advance what will work for you. Naturally if you get less than satisfactory feedback you may choose to expand the calling base to see if there is a real problem or an isolated issue. The plan that you create should also set out what specific questions you want to ask - what do you need to know to encourage you to move forward?

Always ask the same questions to all of the franchisees that you contact in order that you can create a comparison chart at the end of the exercise.

Determine in advance the outcome you are seeking When do you have enough information, when are your questions fully answered - decide these and other aspects in advance so that you know when you have completed the task. There is no advantage in calling franchisee after franchisee just for the sake of making calls. You are seeking some basic information - once you have that you should be ready to move on. If the information that you gather is not meeting expectations then additional calls might help, however you would probably be better communicating with the franchisor at that stage to have a debriefing meeting with them.

Candidates working through a validation process need patience and direction.

Existing franchisees may be hard to reach and the validation process may stretch out longer than a person would wish. It might, therefore, prove appropriate to ask the franchisor at the outset of validation to suggest the names of some franchisees that would be easy to reach and willing to share their story. While this means that the candidate will be talking with hand-picked franchisees as opposed to ones randomly selected from the Disclosure Document, it does at least get the process underway and opens the lines of communication.

Existing franchisees will often be happy to make introductions to other franchisees with whom they are acquainted within their system. This can be another good independent way to move forward.

There are also some ‘outsourcing’ opportunities in the area of franchise validation. We are not talking here about hiring someone to make your calls that certainly would not be a positive approach. Many mature franchisors have found there is value in having their system independently validated both as a management tool for themselves,

David Banfield

and also as a means of speeding up validation for new franchise candidates.

This independent validation comes in the form of a ‘mystery shopper’ approach.

The franchise system hires a reputable organization that is experienced in franchise validation, and then they survey, on a fully confidential basis, all of the franchisees already in the system. From their feedback they are able to produce a comprehensive report that addresses many of the questions that candidates would ask. Not only is this valuable feedback because it is from an independent source, but it is also information gathered from the total system rather than just three or four franchisees that a prospect might call. Always check with your proposed franchisor to ensure that they have such an independent validation process, and the make sure to get a copy of their report.

To validate or not to validate - it’s not really a question - it’s a necessary part of becoming a franchisee.

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: Website: www.interfacefinancial.com

Franchising USA

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f ra nchisor in depth

You ng Remb ra ndts

“Young Rembrandts is a business with a purpose and it’s about community involvement and community connection.”

Mastering the Art of Franchising Dispelling the myth that art is a talent a child does or doesn’t have, Young Rembrandts is teaching kids to draw through a unique, passion-driven curriculum.

Bette Fetter

Founded in 1988 by Bette Fetter, the program began at her very own kitchen table in Elgin, IL. Surrounded by eight young children, here Fetter launched what would become a winning international franchise concept.

Starting the program as a part time hobby while playing Mom to her four young children, Fetter quickly grew her business out of passion for kids and art, and before

Franchising USA

long was teaching around 3000 children in the northwest suburbs of Chicago. As the demand for her art classes grew, Fetter’s husband left his corporate job and together the couple ran the home-based family business.

As an art graduate with experience in early childhood education, Fetter developed a methodology and product for the art classes and began hiring other teachers to help expand the business.

Moving the program into preschools, while teaching preschool and elementary aged children, Fetter introduced concrete ideas and techniques that would enlarge and enrich children’s artistic skills, visual vocabularies, imaginations and minds.

Designed to provide young children with comprehensive art literacy and the skill based creativity necessary for academic

Art

success, people began catching on to what Young Rembrandts stood for and became active in signing up their children.

Experiencing growing success with Young Rembrandts, Fetter began franchising the concept in 2001. “We ran Young Rembrandts as a business for 13 years before franchising the concept,” she explains.

“After growing so much in the Chicago area, our mission became to reach more kids and so it was time to take the business to the next level.” Today the brand has 85 franchises throughout the United States, six in Canada and three master franchises internationally.

As schools continue to dramatically cut art programs from the curriculum, Young Rembrandts is filling the void. “There is such a tremendous value in learning to draw not only in terms of artistic ability, but also in how it affects children’s learning skills and performance in the classroom, as well as their confidence and self esteem,” says Fetter. Although Young Rembrandts is a home-based business, the classes are held at host locations such as elementary schools and park districts.

Franchisees act as managers or liaisons of part-time instructors that they train to teach classes of children ages three to five and six to 12 the fundamentals of drawing using Fetter’s unique curriculum and step by step teaching method.

Today Young Rembrandts is looking for franchisees that have experience in management and a passion for art. “A lot of people from corporate America with

experience in a management role have joined the team because the business offers a flexible career and a good balance between work and family life,” explains Fetter. “It’s a passionate business, so we’re looking for personable people interested in being social entrepreneurs. Young Rembrandts is a business with a purpose and it’s about community involvement and community connection.” Franchisees should also be strong networkers, leaders in their communities and have a desire to grow a business that has a societal impact and makes a difference. Focused on growing, key areas of expansion include the east coast and central region of the U.S., as well as the vast open territories in Canada and international markets.

Young Rembrandts’ franchising process begins with getting to know one another.

After submitting an online application and speaking with a franchise development specialist to learn more about the business,

the candidate will then chat with other franchise owners before attending a Discovery Day. Here candidates will meet with the founder and CEO, corporate support, tech, and marketing team, and if both parties agree the business is a good fit, a franchise is awarded and the new franchisee will begin training.

Young Rembrandts’ turnkey training process allows franchisees to effectively start up and operate a successful, familyfriendly, home-based business. Consisting of three stages, the first is pre-training.

During this stage franchisees will be provided materials to cover before spending one-week of intense training in the Elgin, IL headquarters. Following this week, franchisees complete the process with post-training webinars, calls, and other materials to complete as they get started with their business. Online teacher training tools are also provided to instruct part time teachers in Young Rembrandts’

Franchising USA

f ra nchisor in depth

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f ra nchisor in depth

You ng Remb ra ndts

method and curriculum. The franchise training and support, together with the company’s proprietary curriculum, prepares new franchisees to begin operating immediately upon completing training. Ongoing support is available from a personal business coach and assigned mentor who will help franchisees meet their personal and financial goals.

The franchise fee to purchase a territory in the U.S. and Canada is $31,500 and includes a protected, exclusive territory, which is larger than those of leading competitors. Also included in the franchise fee is proprietary task management and scheduling software, an intranet library with extensive training, marketing and business resources, as well as easy to use online reporting and personal goal tracking software. While franchisees are responsible for finding teachers and host sites, Young Rembrandts provides all the information on how to do so, as well as the curriculum, teacher training modules, and ongoing assistance. Having recently published a book titled “Being Visual” that focuses on the value of the arts and learning, Fetter is also in the process of launching a podcast regarding the value of the program. “The podcast is not exclusively about the Young Rembrandts program, but rather to raise awareness in the value of the arts overall,” she says.

“The Young Rembrandts difference is that it’s not just a business or product, it’s a mission,” explains Fetter. “Our franchisees are passionate and mission orientated and

Franchising USA

“The Young Rembrandts difference is that it’s not just a business or product, it’s a mission.” the quality of the product doesn’t compare to just any art class. It’s been designed very intentionally to maximize the amount of impact we believe art can have on children academically and holistically.”

Young Rembrandts is currently working to communicate the value of its product in a very broad and international way. In doing so, these efforts directly reflect and support franchisees and their customers.

The biggest benefit to being a Young Rembrandts franchisee is the personal satisfaction involved. As thousands of children across the globe participate in classes on a weekly basis in which they produce great artwork and grow emotionally and academically from the program, franchisees are affected first hand by this. “Our franchisees love what they do, and when they get to see the kids, their art, and talk to the parents- they feel great about what they’re doing everyday.”

A common contender in Entrepreneur’s Top 500, Young Rembrandts is also no stranger to the Franchise Business Review.

“We like that we’re in both of these rankings because while Entrepreneur Magazine focuses in on the statistics and number of units, the Franchise Business Review surveys franchisees,” says Fetter, adding, “We always score high in it because our franchisees are very happy with the concept and company.”

Recently launching a new franchise website, blog, and social media platforms,

Website: www.youngrembrandtsfranchise.com/

For more information:

Page 25 13

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www.franchoice.com/GKnauf 540-351-6185 gknauf@franchoice.com Franchising USA

ex per t advice

Adam Heitzman, Co-founder & Managing Partner at HigherVisibility

The Case For Franchise Directories:

Can They Be Trusted? trustworthy directories out there; you just have to know what to look for to make sure you find one that really works. Fortunately, that whole process is pretty easy.

The Benefits of Using Franchise Directories When Making a Decision

Adam Heitzman

There has been a lot of bad buzz surrounding the word “directory” lately, so it’s tough not to question whether or not they are worth your time.

Directories are an excellent place for companies to buy and sell links, publish poor quality content, and spam the web, so wouldn’t it just be best to steer clear completely? The truth is, franchise directories are some of the more

Franchising USA

Before figuring out if a directory is quality or not, decide if a directory is really something that will benefit you at all. They aren’t for everyone, so understanding the benefits is key: • They sort all different franchise opportunities for you by keyword, type, letter, etc., so it’s easier to see what is available if you’re not sure what type of franchise to start.

• Most have educational materials to help you make your decision.

• The different sorting and categorizing options make it easy to compare your franchise with others out there.

• They will help connect you with the person you need to know if you’re interested in buying a franchise or have questions.

• You can usually also advertise your franchise if you’re looking to sell.

Any Negatives?

The only real negative to using directories is that some of them can be spammy (discussed in the next section). The good directories usually require a fee from advertisers so they’re only putting out the best quality, and all of the categorization options usually get rid of any overwhelming feelings you might have. Overall, the verdict here is a positive one—assuming you find a good directory.

How To Tell If a Franchise Directory Is Quality Myles Golden, CEO of WidgetWare, wrote an article where he explained that directories aren’t dead, it’s just now all about niche directories. In other words, it’s not a good idea to look for franchise opportunities on just any directory—you have to find directories that are specifically for franchisees.

Analyzing a franchise directory is much like analyzing any type of directory in any industry. There are a few things you need to look for to make sure you’re using a good site: • There is usually more than just links.

You’ll want to be on the lookout for

content (video or written) as well as descriptions and logos for each franchise.

• Take a look at the date when the content was written. The directory should be updated.

“It’s not a good idea to look for franchise opportunities on just any directory — you have to find directories that are specifically for franchisees.”

• They won’t always rank for the term “directory,” and this is a good thing.

Many franchise websites work much like directories and offer the same benefits. Consider using your browser’s “find” function to search for directories.

• A good franchise directory shouldn’t ask for anything in return from you (particularly, no reciprocal links).

And the obvious, your credit card information shouldn’t be required to talk with someone in charge of a particular franchise.

You can also look at the PR of a franchise directory to start and give you a general idea of the quality, but I don’t typically make a decision just off of the PR. Consider all of the points above before worrying about if something is a high or low PR.

For Advertisers If you’re looking to find a franchisee and want to use a franchise directory, the same points above apply. I would also recommend trying to submit articles or post in the comments or forums on the directory to really get yourself involved in the directory and show that you’re serious and knowledgeable.

A Few Popular and Trustworthy Franchise Directories First, Franchising USA is actually a perfect example of a Franchise website that also works as a directory, but it does not rank for the term “directory.” If you visit the “Find a Franchise” link at the top of this page, you’ll be taken to their option that works as a directory.

To save you a little bit of time and trouble, here are a few franchise directories that I

have checked out in the past: • FranchiseExpo.com • Franchise.org • FranchiseHandbook.com • FranchiseOpportunities.com Are you familiar with any quality franchise directories? Do you have a story about using a franchise directory that went

well (or didn’t go so well)? Let us know your thoughts in the comments below.

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: Website: www.highervisibility.com/

Franchising USA

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f ra nchisee in action

D r. G’s Weight Loss & Wellness

Making a Difference with

From small town Old Forge, NY, Jill and Bill Morris are making big changes with Dr. G’s Weight Loss & Wellness franchise.

A former sales rep and more recently stayat-home mom, Jill was first introduced

Franchising USA

to Dr. G’s when Bill’s brother discovered the brand while visiting his Florida beach home. Believing the franchise would be wonderful from a business standpoint, upon returning home to New Hartford, NY, he passed along his findings. For Jill who had experience with unsuccessful attempts at weight loss, this opportunity intrigued and excited her. Wasting no time, she began investigating the franchise.

“Immediately my feathers were in the air. I wanted to know how this program worked and what made it so great,” she explains.

“I quickly realized how the program was different from any other, and it all made complete sense to me. The next hurdle was does it work?”

Determined to test the program for themselves, Jill and Bill, the “serial dieters,” headed to the closest Dr. G’s location, which at the time was in New Jersey. After participating in the program for four months the couple lost a combined 90 pounds. “We were floored to see how easy it was,” Jill explains, adding, “We didn’t have any other choice but to open a franchise in New York.”

Deciding it was time to return the working

world, Jill researched the brand from a franchise point of view. With an available market for the brand and obesity rates skyrocketing throughout the U.S., the Morris’ saw the opening to help people in their community. “I liked that Dr. G’s developed a program that made so much sense. Its philosophy is that ‘Not one size fits all,’ but instead it’s customized to help different people with different needs,” explains Jill. The couple also agreed that Bill’s connections as a real estate developer, owner of a local strip mall, and politically active individual within the community would serve as a great starting point to help people feel better about themselves.

Contacting Dr. G’s regarding their interest in investing with the brand, the Morris’ met with Charlotte Russell, CEO of Dr. G’s, and were approved to open a franchise. Attending two weeks of intense training in Fort Lauderdale, FL, this process covered everything from learning the business operations to hands on training in an existing location. A bit weary about reentering the sales world after being off the scene for 10 years, Jill’s skills proved to be intact as she scored six

“We were floored to see how easy it was. We didn’t have any other choice but to open a franchise in New York.”

points higher than the company’s highest performing sales person on the training test. Appointed as Area Directors for New York State, the Morris’ opened their first location in Hartford, NY in October 2012.

Within their first eight months in business they hit their projected annual revenue, making them the number one franchise in the Dr. G’s system.

Opening their second location in Fayetteville, NY, in October 2013, the couple continues to see rapid success.

“Never did we think that we would be instrumental in helping someone get their weight under control and get them off blood pressure medications. It’s incredible to see that we are helping save and change lives everyday, we never put that in the equation when we were buying our franchise,” says Jill. “Everyone is tired of quick fix diets, but Dr. G’s is a lifestyle change. We’re giving people selfesteem through an easy to use, easy to sell program.”

Key to their success is employing great staff in both locations. “Having compassionate people who can be warm

and fuzzy and also sell is essential,” explains Jill, adding that all employees are also sent to Florida’s corporate headquarters for comprehensive training.

To those interested in franchising with Dr. G’s Jill says it’s a wonderful opportunity.

“It’s work that sells itself with an upand-coming franchise,” she says. “Now that the American Medical Association has declared obesity a disease, it brings our work to a new level and people are realizing that sometimes you need to be doctor supervised, have your levels checked, and enroll in a program to get to where you want to be.”

For patients the Dr. G’s process begins

with visiting a location, filling out paperwork and meeting with a medical assistant. Next patients are measured and weighed, have their body mass index (BMI) taken, and complete the slimmer image process. A hit with patients, the slimmer image step involves taking a photo a patient on their first day of enrollment and asking them how much weight they wish to lose. Using specialty software, Dr. G’s staff is able to give patients a photo of themselves at their goal weight to take home for motivation.

“People love getting a visual of what they can achieve if they stick to the program, which itself is easy to follow. They also

Franchising USA

f ra nchisee in action

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f ra nchisee in action

D r. G’s Weight Loss & Wellness

love that you’re not going to have everyone at the center clap if you’ve only lost a few pounds. We’re targeting losing eight to 15 pounds a month, and redraw blood work to check levels and reassess after three months,” she explains.

On the first day patients also watch a seven minute video during which Dr. Charles Goldsmith explains the program.

Next, patients meet with a wellness coach and then the doctor to decide and prescribe whichever program is best for them based on their medical, personal, and financial needs. Each program includes a combination of medications and proprietary herbal supplements to reduce appetite and increase metabolism.

These supplements are then shipped from Florida directly to patients’ homes. Dr. G’s minimum program enrollment is a three-month period, which could either include or be in addition to a month of maintenance. During the maintenance stage patients reduce their medication and come in for regular check-ups.

Married ten years this October, since joining the Dr. G’s team Jill says her family’s lives have been “unbelievable,” adding that over and above their unanticipated profits, the experience itself has been extremely rewarding. “To be able to personally be a part of healing people and change lives mentally and physically is unreal. We’re the answer to people getting off their blood pressure meds, we’re saving

Franchising USA

“It’s incredible to see that we are helping save and change lives everyday, we never put that in the equation when we were buying our franchise.” lives, and all the while running a profitable business. It’s amazing.”

Now when Jill isn’t busy being a Mom to three kids or working, she enjoys snow skiing, golfing, swimming in their home pool, or relaxing in their in-home theatre.

A believer in always speaking from the heart, people connect with her and know she is genuine in what she is selling.

“Wherever I go I promote the brand because I believe in it. What we are selling

works and being able to stand behind

the product is a great feeling,” she says.

“Being able to wear the Mom hat while

being back in the corporate world has had

its challenges but it’s been wonderful. Not

only are we teaching our kids a better way of living, but we’re changing hundreds of lives.”

For more information: Website: www.drgsfranchise.com

Page 31

Franchising USA

have your say

Da n Miller, Chief I nfor mation O f f icer, M assag e Env y Spa

How Freeing Your IT Staff of the Nitty-Gritty can

Boost Your Growth that today enables us to: • Work on critical bottom-line business issues.

• Enhance our point-of-sale technology to better serve customers.

• Create new revenue-growth applications.

• Become better partners with other departments and our franchisees.

My Top Goal as CIO of a Growing Franchise Dan Miller, Chief Information Officer, Massage Envy Spa

For franchise operations that manage hundreds or thousands of locations at once, a strong IT staff is critical to keeping franchisees up and running, secure, and on top of constant advances in technology.

Similarly as important is your tech team’s ability to innovate and create new tech capabilities that elevate your brand and keep you competitive in the marketplace.

But if your IT team is within a growing company – as is the case with most franchise brands – and it handles every aspect of your network, it can be easy for

Franchising USA

the staff to become consumed in dayto-day tasks and let new projects and innovations fall by the wayside.

Take, for instance, Massage Envy Spa, the pioneer and leading provider of therapeutic massage and spa services in the United States. Not too long ago, my IT team and I handled all of our internal servers, email and more for our rapidly growing operation. We were quickly reacting to every issue that emerged. There was little time to consider or even focus on long-term projects and quick wins as our operation was on its way to growing from 692 franchises in 2011 to 960 locations in 49 states to date.

Our IT story – specifically, is how we moved from a reactive IT operation to a proactive one – and this should prove informative and useful to your own IT operation. It’s a story of transformation

When I arrived at Massage Envy Spa more than five years ago, I had a single major goal in mind: lead a proactive IT department with a clear roadmap of where we wanted to be in the future.

Rather than functioning as a maintenancefocused operation, we needed to deliver new innovations quickly to improve the experience for our customers and our franchisees.

A franchise’s core IT department should be a true business enabler that delivers real value to the company. It was vital for our IT professionals to vanquish labor intensive day-to-day duties and let someone else handle those items, freeing the tech team up to innovate. Otherwise, what can occur is that the IT team is viewed internally as only a cost center that is merely responsible for keeping email working and laptops fixed. If your tech team is proactive, on the other hand, and has the bandwidth to, for example, assist the marketing department to automate

their processes online, the IT department can be a true enabler that adds value to the franchise operation.

Our team recognized that we couldn’t make the leap from reactive to proactive if our help desk was being overloaded or our servers were unavailable. Candidly, it’s hard for company leaders and colleagues to listen to a new project plan, no matter how groundbreaking, if everyone is living with daily IT issues that affect the entire organization. You need to address those first.

The Decision to Outsource In order to maximize my team, I knew we had to strategically outsource some functions, particularly the heavy maintenance items. We needed to identify and use a managed IT host provider with cloud-computing services that would keep our rapidly growing franchise locations up and available.

That was crucial since any outage could limit our franchisees’ ability to serve our members and guests. The impact would be felt on nearly every point-of-

“A franchise’s core IT department should be a true business enabler that delivers real value to the company.” sale interaction at our 960 locations. For our franchisees, we must be available a minimum of 20 hours a day, seven days a week.

One of our key selling points to our customers is the ability for any Massage Envy Spa member to go to any location nationwide and use their membership for massages or facials. Our technology facilitates this. So keeping our systems up-to-date and our technology available delivers the proper customer experience – regardless of which spa location a customer uses anywhere nationwide.

This is important because our initial goal for our current technology platforms was to have integrated systems where every franchisee receives the same software, same training, same reporting and the same processes in place. And this has held true as we grew from 300 units to more than three times that number.

All franchisors can benefit from this approach in several ways. Having the

mindset that you can leverage IT platforms on cloud technology to deliver to the business helps you deliver innovations on a faster timeline than traditional desktop-based tech, and keeps you from reinventing the wheel. Most likely a vendor has 95 percent of what you need, so you will not have to start from scratch and build something internally with existing resources. This frees up your time, and the time of your team, and brings down your cost significantly.

A Solid Disaster Recovery Plan It is also essential to create a solid disaster recovery strategy, and having a managed enterprise cloud provider you can partner with allows you to gain expertise in that creation. When a website or database goes down for any extended period, it is already too late to do something about it. This is the reactive part of IT that is not fun for anyone. A formal and strategic disaster recovery plan provides a proactive strategy that keeps that system up and running in

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have your say

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have your say

Da n Miller, Chief I nfor mation O f f icer, M assag e Env y Spa

“It’s hard for company leaders and colleagues to listen to a new project plan, no matter how groundbreaking, if everyone is living with daily IT issues that affect the entire organization.” a crisis and even though it is more work upfront, saves a large amount of time and pays dividends later on.

Inclement weather, especially hurricanes and tornadoes, have played havoc with computer and IT systems around the country. Even if your system uptime is exceptional, you may not be able to access the Internet – and that hurts your ability to transact business, which can lead to lost revenue or lost customers.

Massage Envy Spa relies on two data centers as well as a team of outsourced expert IT specialists that serve as a true extension to our IT staff, and if one data center goes out, the backup in a completely different region and quickly goes into action. This also makes our system upgrades in our data centers seamless to our franchisees, members and guests. We always have a backup location that is ready to go.

Selecting a Vendor and a Partner I can give you some of our criteria in selecting a managed enterprise cloud provider. First, I can’t emphasize enough the importance of an IT provider’s reputation. Reliability and security are essential to our business since any loss of data or extended downtime period can trigger financial implications.

Since our members have the ability to visit any one of our locations across the country, having an unreliable system would prove unacceptable to both our franchisees and our customers. Any outage, regardless of how long, would impact a large number of our point-of-sale interactions.

Ultimately, we selected SunGard Availability Services for our critical systems and for their capacity and capability to scale our network and

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cloud-hosting environment. The Wayne, PA, company handles larger maintenance needs, or the keep the lights on activities, while we concentrate on new projects and innovations.

As part of us looking forward and being more proactive, we were able to put massage sharing into effect for our members. It allows our members to transfer their unused massages to their friends and family. We have also have launched an online booking tool, currently in one of our markets, and enhanced our reporting structure. This year will also

see the launch of more innovations in the mobile space for our company. If our department was still reacting and being overburdened by increasing maintenance needs and costs, we would not have the bandwidth to launch initiatives that improve our customers’ experience and ultimately, our franchise as a whole.

Dan H. Miller is Chief Information Officer of Massage Envy Spa, based in Scottsdale, AZ. For more information: Website: www.massageenvy.com/

real estate ure Page 35

www.franchisingusamagazine.com

t a e f

Franchising USA

r ea l estate featu r e

Featu re

Finding a Real Esta

“House sales have returned to the levels they were at before the financial crisis and the entire industry is well on its way to a full recovery.”

After some lean times, the U.S. housing market is on an upswing and that means the real estate franchising industry is enjoying a comeback.

So, now is a good time to get in on the action.

Franchising USA

Whether you are planning to start a franchise from scratch or you are planning to convert an already established independent real estate brokerage into a franchise of a larger company, franchising has many benefits, and can be an ideal survival strategy for an independent brokerage that has fallen on hard times.

franchisor company and its brand name recognition • Comprehensive training in current best practices • State-of-the-art technology • Partnerships with leading vendors • Operational support

With a real estate franchise, you get:

• Marketing and advertising support

• Power of brand name backing, including a proven track record of success of the

• Group purchasing power

• Lead generation support

a Home with a tate Franchise • Partnerships with related vendors, such as home inspectors, mortgage lenders etc.

Scope Of the Industry You may think that the real estate franchise industry is just the brokerages that deal with the selling of land and property, but it’s actually more than that. It includes all the various industries related to real estate, like property management firms, moving companies, storage facility providers, maintenance professionals and renovation companies. All these outlying services make the real estate industry a large and diverse one.

The main segment of the real estate industry is, of course, related to property, consisting of three fields: brokerages, leasing, and property management.

Brokerage services make up 45 percent of the industry’s total revenue, leasing residential units comprises 35 percent, and property management comprises 15 percent.

This decrease in the number of houses for sale over the last several months has also meant an increase in prices. This year looks to continue that promising trend, with more improvement than last year, according to consulting firm Deloitte.

That improvement is evident by looking at the numbers for real estate franchises like Coldwell Banker, Century 21 and Re/Max, which have all seen improvement over the past year, along with many others. Real estate company Trulia, which has been keeping track of the housing recovery, says house sales have returned to the levels they were at before the financial crisis and the entire industry is well on its way to a full recovery.

About 165,000 companies operating in the residential brokerage and property management field last year generated $170 billion in revenue, according to analyst Andrew Weber, while 25,000 companies operating in the commercial brokerage and property management field generated an annual revenue of $30 billion.

growth that is happening in the industry.

You’ll need to decide which area of the real estate industry you want to enter. Are you more interested in buying and selling property, leasing property or managing property? Regardless of which area you choose to get into, it’s best to be fully prepared and perform your due diligence by researching that particular area and learning as much about it as you can.

You also need to know your local market.

If the company that you are interested in having a franchise with is already represented there, you will likely have to look for one that is not yet in that market.

Property management is much like other forms of management, where you’ll have to coordinate and oversee a multitude of activities and ensure everything runs as smoothly as possible. If you’re good at management in general, you may be a good fit for property management and you don’t need any specialized knowledge to get started. A franchisor will provide you with the necessary training to get yourself set up. Property management franchisors are happy to hear from anyone interested in starting a franchise and will have abundant information and contact forms on their respective websites.

Among the brokers, there are residential and commercial brokerages, with a few that deal in both areas. The residential real estate segment, where many franchisees will likely opt to get into, is extremely fragmented, with the 50 largest companies making up less than 30 percent of the industry’s total revenue.

“Brokers’ commissions have grown at a compounded rate of 14 percent annually since 2010 and are predicted to do so through 2015,” says Weber. And the output of U.S. real estate businesses has grown at an annually compounded rate of six percent since 2010 and is expected to continue into 2015.

Market Growth

Getting Started

Starting a brokerage is a bit more complicated. Here’s a basic overview of how to get started with a real estate brokerage franchise.

Many homebuyers have been taking advantage of the low prices, leading to growth in many regions across the country.

So, with the market quickly on its way back to normal, now is a great time to jump in and take advantage of the natural

The first step in starting your real estate business is to become a licensed real estate broker.

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r ea l estate featu r e

Featu re You can easily find courses near you to study the required course work and take the licensing exam. Each state has its own specific requirements, so check with your state’s real estate commission for those.

Most real estate franchisors will want to work with someone who knows the industry from an insider’s perspective.

Decide which franchisor you’d like to approach and do your research to make sure you’d be a good fit for each other.

Real estate franchisors won’t accept just anyone as a franchisee, so you’ll want to be prepared when you approach them. People who are already running independent real estate brokerages will have an advantage here, as the infrastructure is already in place.

You know the old adage about location in real estate and it’s no different for your business. Find a good location for your offices that is central and easy to get to.

It’s also important to know the community

you’re serving thoroughly. People will be asking you about where the best schools are and which neighborhoods are good for children and which ones they should avoid.

You’ll need to become an expert on the area you serve.

As with any business, you’ll need a business plan that details your financial plan, your budget, and how you’ll run the business. Make your plan as thorough as you can and include things like purchasing errors and omissions insurance to prevent unnecessary law suits, plus how many real estate agents you plan to hire. A business plan will help you convince a franchisor that you know what you’re doing and you’ll represent their brand accordingly.

Procure funding. Obviously easier said than done, but a business plan will help you if you need a loan or need to attract investors in your business. It will also help if you get the backing of a franchisor before opening your business. A strong

“People will always need housing, so it’s an industry that can easily survive and rebound from an economic downturn.”

brand name carries a lot of weight with it with loan agents and investors.

Once you’ve gotten set up, it’s time to start marketing. Of course, having the backing of a recognized brand name makes this much easier, and a franchisor will have its own marketing strategy to share with you.

You’ll also want to join any trade organizations in your area, like your local branch of the National Association of Realtors, which will give you credibility and access to a wealth of pertinent information. Joining your local chamber of commerce will help get your name out there in the community.

Once you’ve established yourself, clients will start coming to you for their real estate needs and this is where the hard work begins, but it’s also where you get to reap the rewards of that hard work.

It’s also a good idea to visit a franchisor’s website to see if they have any specific requirements or if they have any specialized information you need to know.

Although a franchisor can help you get started, entrepreneurs will need a good deal of enthusiasm, sales skills, marketing savvy, basic knowledge of the housing market and extensive knowledge about the area they plan to operate in.

Being prepared will also help you to convince a real estate franchisor that you’re a good fit to represent the brand.

Unlike most franchises, real estate companies tend to prefer to “recruit” franchisees rather than just sell the franchise to whoever happens to have the funding for it.

With the real estate industry getting back to normal, now is an opportune time to open a franchise. People will always need housing, so it’s an industry that can easily survive and rebound from an economic downturn.

For more information on Real Estate franchises as featured in this issue: Rapid Realty........................... 2 Kimco Realty....................... 76 Franchising USA

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DON’T MISS OUR NEXT ISSUE!

Automotive franchises

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 Automotive Franchises in the May edition of Franchising USA. For interactive editorial and advertising solutions, please contact Jenn Dean, Jenn@cgbpublishing.com.

250-590-7116 Franchising USA

ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

Downsized into Your Destiny “Everyone has challenges in life, the difference is if you influence and benefit from the outcome.�

Recently I was talking to a bestselling author who has written about being downsized and what it takes to reinvent a career.

We were discussing the evolution of franchising from a life raft for countless downsized executives 20 years ago to

where we are today as what

may be a more viable long-term

career path than the jobs that

corporate America offers. Not that jobs are bad, they train you to be a business owner.

My author friend was amazed at how running a franchise was similar to the senior corporate executive role that so many strive for, with the exception that in the corporate role he saw diminishing job security, ever increasing workloads and falling pay, especially for those employees who have been downsized.

In a franchise those same executives can build a role that feels like the best of corporate America (proven model, systems, infrastructure, departments full of experts and other resources to support you), while also offering the best of being a business owner (independence, freedom and control over one’s own earnings).

When I asked him how much he sold his

Franchising USA

last job for it got very quiet on the other end of the phone, you see employees build someone else’s asset while franchise owners build their own and eventually sell it.

How much did you sell your last job for?

My first seminar presented to a group of corporate executives in an outplacement center was in 1994, franchising was a pretty foreign idea for them at that point. The franchise business model was still forming into something other than the realm of fast food operators. We were seeing a number of consumer and business facing services companies make significant strides in building big and reputable national brands. My role at the time was building the footprint of one of the largest travel brands at a time when agencies were paid well by airlines, hotels and cruise lines.

Time and time again I would step in front of a room with 40 to 50 executives at these centers and teach them about the origins of franchising, what the business model was and how their skills were one hundred percent transferable. We would talk about how to use franchising in a wealth building plan and how to mitigate risk. Considering business ownership was difficult for them because they had been raised to believe that if they got good grades, worked hard and put the company first in their life that the company would pay them well, make sure they always had a job, and take care of their retirement.

The realities of the work world were very different than most corporate executives expected back in those days, and for some it is still a surprise even though downsizings are common. We helped a lot of those executives find a new direction, some in our travel system and others took their newfound knowledge and found a franchise they saw as a better fit for their skills, likes, goals and how they wanted to work.

Then the strangest thing happened, all of

the major U.S. airlines stopped paying travel agent commissions. This was a sea change for the travel industry, what had been the largest income stream for most agencies was evaporating. I am not aware of any bigger change to a particular market’s income stream in the past 20 years, certainly never to any franchise system. It would be like McDonald’s both having to provide hamburgers to anyone that wanted one, but not being able to get paid for the burger. This threw our company into a bit of turmoil as the executive team worked with agencies to re-mold a business model that would work in the new travel industry.

I was downsized.

With the company working to rebuild the travel agency model, which they did, they did not want to bring any new franchisees onboard. I will never forget that day, walking out of my office with my personal effects in a box or the feeling of going home and explaining that we got the joy of starting over.

Fortunately I dropped into a job that was a life raft of sorts, driving three hours each way to expand a health and wellness company. But my destiny was set back with the downsizing, my goal was business ownership where I could control much of the outcome. There were a couple steps I had to take to get there, but I did.

Soon, I was the proud new owner of my first franchise and have not needed a resume ever since!

Were there challenges along the way, sure there were. Everyone has challenges in life, the difference is if you influence and benefit from the outcome. I had to learn a new business and go build it with the franchisor’s help, but I had built business before just for other people. We saw economic challenges that affected both employees and business owners, like 9/11 and the last recession, but I got to guide my own path through those markets where countless employees were not so lucky and got downsized then spent months or years looking for their next job.

George Knauf

So, what is the moral of the story?

Sometimes downsizing positions you for great opportunities that you might not have pursued had you not been pushed into the pool. Looking at new options, whether a job or business, is always uncomfortable.

It would be so much easier to just keep reporting to your old office and doing the same work you might have even thought was getting boring before you were downsized.

From a purely biased point of view, I love that corporate America is making owning a business look so enticing since they only control about 30 percent of jobs anyway.

Corporate America has taken away the false perception of security that they have offered up or and encouraged their best and brightest to move from being the employee to being the employer.

Where does your destiny lie?

Mr. Knauf 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.

For more information: Website: www.georgeknauf.com

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prof ile

Rapid Realt y

Rapid Realty

Sweeps the Nation While a lot of companies have been dabbling in rentals over the last few years, Rapid Realty NYC has been putting residential and commercial rentals front and center since opening its doors in 1998.

Founded in Brooklyn, NY by Anthony Lolli, the company has risen to the top as the number one rental firm in New York City.

After honing its craft in the busiest rental market in the world, Rapid is putting its expertise to work for renters all across America. Helping thousands of people find great apartments and commercial spaces, Rapid has opened its doors to franchising with a business model that is second to none.

Since the inception of franchising in 2009, Rapid has grown to over 65 offices throughout the U.S. with franchise partners from all walks of life. Adrian Cardona, a U.S. Air Force Veteran, joined Rapid Realty as an agent in 2007, and is now a multi-unit franchise owner. Noting the similarities between the military and franchising, Cardona says that while launching a business with most companies is hectic, Rapid is an easy-to-open business that is offering opportunities to anyone interested in launching their real estate career.

Recognized for partnerships with minority groups, Rapid was awarded the New York Urban League’s “Champion of Diversity Award,” which has also been presented to

Franchising USA

“Purchasing a franchise is like buying a real estate office in a box. You get the key, unlock it, and all the moving parts are in there for you.” brands including Pepsi, McDonald’s and Major League Baseball.

A minority himself, Cardona says that oftentimes immigrants feel that they should take jobs under their capabilities, but Rapid is pushing to change things.

“Our country is built on immigrants and the American dream. Rapid wants to continue to move forward in that direction,” he explains. “We provide so much training and support that anyone can come in and learn to run a successful franchise, even if they’re new to real estate. That’s the beauty of what we do!”

Providing an intense four-week training program that consists of both classroom and hands-on training, franchisees will learn all the business’s operations and procedures. An area development team also assists franchisees with recruiting and hiring agents, as well as building out their offices. With over 250,000 monthly website visits, and millions of online impressions, Rapid’s marketing is second to none.

“Rapid doesn’t just teach franchisees the ins and outs, but it gets them involved with the actual processes,” says Cardona.

“Purchasing a franchise is like buying a real estate office in a box. You get the key, unlock it, and all the moving parts are in there for you.”

The cost to purchase a Rapid franchise is less than $100,000 and includes everything from the office doorknobs to the computers required to do the job.

Aggressively growing in new markets,

Rapid Realty is currently focused on expanding to Chicago, Miami, Los Angeles and other major cities and areas with large student populations across the country.

Setting Rapid Realty apart from its competition, the business operates in an assembly line fashion. “Where other companies take one agent and teach them the entire process, Rapid breaks the process down into steps and assigns different agents to different areas. There are too many hats involved for one agent to effectively cover them all in a timely manner,” explains Cardona. “Rapid supports its franchisees 100 percent of the way.”

For those interested in owning a franchise or getting started in the real estate industry visit Rapid Realty’s website or contact Adrian Cardona directly at 646-296-6772.

For more information: www.rapidnyc.com www.iamadriancardona.com www.anthonylolli.com

APRIL 2014

Veterans in Franchising www.franchisingusamagazine.com

Franchise a Little Smarter with

Veterans Celebrate

success

A New Collaboration for

Veterans in Franchising

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feature

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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.

Take Control Of Take Control Of Take Of YourControl Future…

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A Business Of Your Own! A Business Of Your A Business Of Your Own! Own!

Take Advantage of Our Take Advantage of Our Take Advantage of Our Free Expert Help Free Help Free Expert Expert Help Today!

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Now its time to build a future for you and your family.

You served your country proudly.

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You served your country Now its time to build a future for you andproudly. your family.

Now its time to build a future for you and your family.

V eterans in F ranchisin g S upplement april 2 0 1 4 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the MAY issue, please contact Jenn Dean, Business Development Manager Phone: 250-590-7116 Email: jenn@cgbpublishing.com

Contents 46 Cover Story: Geared for Success Meineke Car Care Centers

50 Profile

58 Profile

Live 2B Healthy Senior Fitness

52 Franchise in Depth

Home Franchise Concepts

56 A New Collaboration for Veterans in Franchising Jim Mingey, Veterans Business Services

Mike Hansen, Property Management Inc

60 Profile Zooming Groomin速

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V eter ans i n Fr anch isi ng

COV ER STO RY

Geared for Success: Meineke Car Care Centers Meineke Car Care Centers, Inc. may have started as a single store offering a single product, but today the one-stopshop offers complete car care repair services that customers have come to know, love, and trust.

Founded in 1971 by Sam Meineke in Houston, TX, the brand began as a muffler shop, but as the exhaust industry started to decline Meineke quickly adapted to become a complete service car repair shop.

Now offering services in brakes, tune ups, diagnostics, under car repairs, tires and exhaust, as a part of the Driven Brands family Meineke has successfully built its automotive business franchise system with over 960 locations throughout the United States, Canada and Mexico.

Providing franchisees with market share,

Franchising USA

national advertising, financing assistance and recession resistance, the renowned Meineke brand provides its partners with a broad range of services, hands on training, and a unique system that’s geared for business success. While the automotive industry has grown significantly since 2000 and is projected to grow through 2016, part of the reason for this trend is that consumers are holding onto their cars for longer periods of time and miles driven. This results in increased maintenance and repairs.

“Auto repair is what we provide in terms of service, but Meineke is a retail oriented business and it requires sophisticated marketing to customers, as well as incredible customer service,” says Dave Schaefers, Senior Vice President of Franchise Development of Meineke.

“We want to be the preferred automotive provider so we focus on growing the company through customer retention.” As over 60 percent of the business is from repeat customers, growing this base is critical to company growth. “In order to gain repeat customers franchisees need

to provide an environment where the customer trusts us,” he explains, adding, “It’s about the brand experience on a retail level.”

Seeking franchisees to join the brand, Meineke is looking for individuals with a background in business, marketing and management. While automotive experience is not required, instead franchisees need to be able to manage and hire great staff. “In our business people are everything, so franchisees need to be able to evaluate and train their staff,” says Schaefers. “They need to be able to put the aces in their places, it’s critical when opening a store.” Franchisees must also be dedicated to overseeing the facility, ensuring it’s run the way the business system is documented. “Meineke is not a wallflower business where a franchisee can sit back and let things happen. They need to be active or hire management that is active within their local communities, get to know local business members and be engaged within their market.”

Over the several years the company has started working with multi-unit franchise

“Working with VetFran, Meineke offers a 25 percent discount to Veterans, and to date has approved over $800,000 in discounts.” applicants, and recently sold out Phoenix, AZ with a 20-license package. “In addition to our traditional buyer, Meineke is bringing in a different level of buyer, someone who can develop an entire region.

In response to this we’re offering license and royalty discounts as incentives for the right candidates to grow with the company,” explains Schaefers.

The cost to purchase a Meineke location ranges between $250,000 to $275,000.

This includes equipment, inventory, license fees, and working capital. Working with VetFran, Meineke offers a 25 percent discount to Veterans, and to date has approved over $800,000 in discounts. “The average discount per Veteran is $7,500, which means we have done well over 100 licenses with Veterans,” says Schaefers.

A fan of signing on Veterans because of their experience in a highly structured, mission-driven system, Meineke believes this experience coincides with their ability to follow a process, which at large is what franchises are based on. “If someone follows a franchise system, they have a very good chance of being successful with their business,” explains Schaefers.

A great example of a Veteran who has found success with Meineke is Tom Perez.

Coming to the business after serving in the military for 14 years, Perez has followed the franchise model and is seeing incredible results.

Meineke’s franchise licensing process is extensive and relies on cooperation and participation from the Meineke Leadership Team. Requiring franchise approval from the sales, real estate, financing, legal, and operations teams, as well as the President of the company, the entire process takes four to six weeks to complete.

The process begins as soon as a candidate expresses interest in purchasing a franchise, at which point they are indoctrinated into the company to ensure it’s a good fit for both parties. Filling out a preliminary discovery questionnaire

including financial information, if the candidate passes the first round of approval they will then review the FDD and FTA before attending a Meineke presentation and discussion. Practicing due diligence, the candidate will next contact other franchisees to learn about their experiences with the company.

Meineke also provides a very detailed and well thought out Item 19 Franchise Performance Representation.

“During the process we direct candidates through company operations, marketing,

training, buying, funding, and opening,” explains Schaefers. “If all goes well the candidate will identify the market they are interested in and we’ll investigate the area using our geographical analytics. Next presenting the candidate to the company, we will review their file and determine approval.” Once all departments have agreed that the candidate is fit to run a franchise, they are then awarded a license.

Once approved the entire Meineke team will know where the new franchisee hopes to grow, and how many units

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COV ER STO RY

they are looking to open. Assigning an experienced Field Real Estate Representative, this individual assists with identifying approved locations based on cost, geographical location and potential impact on other stores. Meineke’s Financing Manager will also help with funding requirements and an assigned Project Coordinator will arrange signage, equipment, inventory, training and the grand opening.

Attending the two and a half week training program at Meineke University approximately one month prior to opening, here franchisees learn the company’s operations from the store level to marketing, accounting, human resources, and more. Additional support is provided through Meineke’s Internet system dealer, which provides access to over 100 training courses, videos, and the operations manual. An open forum is also available for franchisees to engage with other owners, ask questions and post comments, and the operations team will be present during the franchisee’s first week of store opening.

“Last year the company set records with

Franchising USA

“Last year the company set records with licenses awarded and 2014 looks to even stronger.” licenses awarded and 2014 looks to even stronger,” says Schaefers. Identifying the top 25 markets in which Meineke would thrive, 50,000 registered vehicles are required per store. Noted in this list are Los Angeles, Dallas, and Houston.

Hosting “Building Our Brand Together” road shows in markets with a demand, Meineke has made these events two-part days. Dedicating the morning to presenting new prospects with a detailed presentation, the afternoon is dedicated to existing franchisees. “We invite franchisees within the market to show them where we want to expand, and give them the first opportunity at growth,” explains Schaefers. Meineke’s strategy of meeting with new and visiting existing franchisees in demanding markets has assisted in doubling the company’s sales efforts over the last two years.

Setting the brand apart from its competition, Meineke is different on two levels. On the franchise side the company’s focus on transparency with where the company stands and how they plan on growing is key. On the consumer

side Meineke’s dedication to educating the consumer is the differentiating

factor for the brand. “Our ‘Drive a Little Smarter’ campaign educates customers

at the store level about why their vehicle needs to be serviced. This builds trust in the automotive space, which will

eventually create long term benefits for our franchisees,” explains Schaefers.

With 40 years of experience in an

industry that is continuing to thrive, the automotive space is a terrific area that

provides a simple-to-follow playbook that Veterans can use to leverage their skills

and succeed. “With franchising you’re not reinventing the wheel,” says Schaefers, adding, “Franchising is on a strong

rebound from the lull in 2008, and it’s in a good spot now from both an opportunity and financial perspective. Overall it’s a great time to become a franchisee.”

For more information: Website: www.meinekefranchise.com

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L ive 2 B H ealthy ® Senior Fitness

Live 2 B Healthy

®

Looks to Veter ans “The decision process allowed for a great deal of research and planning; it allowed me to demonstrate the potential for success to myself as well as to the company.”

Working with residents of all shapes and ability levels, the Live 2 B Healthy® Senior Fitness Team has witnessed miraculous social and physical benefits for elder care residents.

We’re proud to bring senior fitness services to a full range of senior residential facilities, allowing them to support a healthier lifestyle for residents.

Live 2 B Healthy® Senior Fitness has also taken a strong interest in supporting Veterans interested in the Senior Fitness franchise model. Interviewing Veterans who are separating from the Military, who want to give back to their communities, and who have a commitment to helping seniors, management has determined that retired Veterans could be a great fit for this low overhead, high profit margin opportunity.

Not only is the franchise organization offering a great incentive to Veterans which is 10 percent off the initial franchise fee, but they have also partnered with Veterans Business Services who provides

Franchising USA

an additional incentive to help Veterans work towards their franchise ownership dreams.

Take for example, Air Force Master Sergeant Mark D. Templeton, Regional Owner for Live 2 B Healthy® Senior Fitness, Southwest Houston. Templeton believes that Live 2 B Healthy® Senior Fitness has a mission and vision that is closely aligned with his passion for senior fitness, and that with the right mindset, the franchise offers a realistic opportunity to grow a great business. “My

21 years of service experience has been very beneficial when it came to building the business from the organizational skills I learned to set up the business; to the communication skills I learned to network and market my business; and to the confidence in setting and achieving my business goals,” says Templeton.

“Unlike other franchise opportunities, I was not rushed to make a decision. The decision process allowed for a great deal of research and planning; it allowed me to demonstrate the potential for success to myself as well as to the company.”

Live 2 B Healthy® Senior Fitness invites all Veterans who are interested in a unique opportunity to learn more about the franchise.

For more information: Website: www.veteransbusinessservices.us/ product-item/live-2-b-healthy-senior-fitness/

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JUNE 19-21, 2014

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Register today, and get in FREE! Visit #FranchiseExpo

use Promo Code: FRANUSA Franchising USA

V eter ans i n Fr anch isi ng

H ome Fra nchise C oncepts

In-Depth with Home Franchise Concepts Retired Air Force Veteran Rob Chick is no stranger to risk. As a member of the well-respected “Wild Weasels,” Chick spent over a decade baiting enemy missile sites in order to reveal their covert locations.

But when the time came to transition into the civilian workforce, Chick was apprehensive about his future and concerned about the odds of survival in a very competitive business world.

Franchising USA

“It can be a rough road,” said Chick. “Even with their incredibly high levels of life experience and training, I’ve seen many successful men and women in uniform struggle to find the right opportunities in the civilian sector after military retirement.”

Rob’s wife, Christina, spent two decades working in Air Force Intelligence as a Chinese linguist and software specialist.

She too wondered how she could parlay her military career into a lifelong dream of owning a business.

“U.S. Veterans deserve a chance to experience the American Dream, and we are excited to be able to help them achieve it.”

After exploring and researching franchise opportunities through VetFran, an organization that connects franchise companies to those transitioning out of the armed forces, the Chicks explored a franchise business ownership opportunity with Budget Blinds® because of its history of supporting Veterans and veteran-related causes. Budget Blinds is part of the Home Franchise Concepts family of brands and specializes in window treatments for the home.

One year later, Budget Blinds franchise ownership has proven to be an ideal niche for this Veteran couple, offering a team-based environment based on proven systems and standard operating procedures familiar to most U.S. Veterans.

Former military members make excellent leaders because they have experience collaborating with others to both set and achieve goals. This makes them ideal candidates for running successful franchise businesses.

In addition to Budget Blinds®, Home Franchise Concepts also owns its sister company Tailored Living®, a national leader in home organization. U.S. Navy Veteran and Tailored Living franchisee, Derek Harris, experienced first-hand how easily his skills translated from the battlefield to the business field. “Tailored Living really complements the handson attitude I gained as an Engineering Laboratory Technician,” explained Harris.

“I’ve been able to carry over my military work ethic into my day to day business activities, which has helped me make a successful transition to the civilian workforce.”

Home Franchise Concepts has long supported Veteran related causes, garnering accolades from Military Times and Franchise Business Review throughout the years. But after hearing many similar stories from over 50 Veteran

franchisees regarding the need for greater

financial support to help former service

Franchise Concepts wanted to take on a

of its team of leaders and entrepreneurs.

assistance transitioning Vets, Home

more active role in helping Veterans and their families achieve success through

business ownership. On Veteran’s Day

2013, the company launched the Million

Dollar Franchise Event, a program that set out with both a passionate mission and an aggressive goal: to provide $1,000,000 in

members and their spouses become a part The Million Dollar Franchise Event offers significant franchise fee discounts for its Budget Blinds® (up to 40 percent) and Tailored Living® home improvement

franchises. This means military Veterans, or spouses of military Veterans, can

purchase a Budget Blinds® franchise for

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H ome Fra nchise C oncepts

“Former military members make excellent leaders because they have experience collaborating with others to both set and achieve goals.” $39,950 ($74,950 non-discounted price), or a Tailored Living® franchise for $44,950 ($49,950 non-discounted price). The program aims to make entrepreneurs of at least 30 Veterans.

“The Million Dollar Franchise Event is the least we can do to support the men and women who have selflessly risked their lives to protect our freedoms,” said Chad Hallock, CEO of Home Franchise Concepts. “U.S. Veterans deserve a chance to experience the American Dream, and we are excited to be able to help them achieve it.”

The program is already gaining attention in the Veteran community, recently welcoming Ohio-based Andy Birge. After a prestigious 20-year career in the United States Air Force, Birge wanted to leverage his military training and experience by starting his own business. “I was drawn to Budget Blinds for its notable reputation for providing exceptional team-based support,” he said. “Not only did they assist me financially, but the training they’ve provided so far has really boosted my confidence in being able to grow this business beyond my initial expectations.”

Home Franchise Concepts provides two weeks of intensive training at its Orange, CA headquarters, giving new franchisees

Franchising USA

the foundation to build a successful business. But the support and training does not end there. Franchisees have access to business coaches, marketing experts, and ongoing public relations to support their business’ goals and longevity.

Each new franchisee receives four weeks of one-on-one business coaching, which provides all the assistance needed for them to transition from training to the running of their business. This includes setting up office systems, accounting processes, vendor accounts, and creating and implementing a local marketing plan. Business coaches also evaluate inhome consultations, helping to improve communication and identification of customer needs. Once the initial training phase is completed, Budget Blinds franchisees then have access to ongoing business coaching for extra guidance towards their long-term goals.

Many of the company’s current Veteran franchisees are also taking part in a new Veteran franchise-owner mentoring program called Vets4Vets. Under the program, new Veteran franchisees are paired with existing Veteran franchise owners to help get their business off the ground.

Home Franchise Concepts is proud to offer

two very different business models under one roof. Tailored Living provides whole home organization solutions, from spacesaving closet design to complete garage renovations that include the capability of installing specialty car themed accessories. With the help of their state-ofthe-art 3D design software D’Vinci, which helps customers visualize each project, the Tailored Living brand offers franchisees an exciting hands-on business, ideal for design-minded Veterans.

Budget Blinds provides homeowners with window treatments and room accessories, from drapes and plantation shutters, to pillows and rugs. Requiring no inventory storage, Budget Blinds appeals to Veterans seeking a low overhead business model with the option of operating as a homebased business; according to a 2007 U.S. Census Study, this represents about 55 percent of Veteran franchise business models. The Budget Blinds franchise model is also designed to help franchisees gain more from their business’ success; franchisees pay a low monthly fixed fee instead of profit sharing based on percentage of sales.

Budget Blinds was founded in 1992, and currently boasts over 850 franchises serving nearly 4,000 cities across the United States and Canada. With the help of its Million Dollar Franchise Event, the company hopes to add at least 30 new Veteran franchisees that will bring their military experience and work ethic to the team.

For more information: www.BB4Vets.com www.TL4Vets.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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Jim Mingey, Veterans Business Services

A New “Collaboration” for Veterans in Franchising

The Advent of a Social Enterprise Franchising will now be a central activity to help drive income growth for a new social enterprise aimed at Veteran entrepreneurship.

The social enterprise is called Veteranscorp.org. A distinguishing feature of a social enterprise from a typical nonprofit is that it derives its capital from earned income rather than donations. For Veteranscorp.org income will be delivered from three complementary sources: franchising transactions, entrepreneurial education courses, and small business incubation systems. These components all have leverage aspects that will help Veterans implement their franchise business plans.

Franchising USA

To accomplish its goals, Veteranscorp.org is partnering with three Veteran businesses focused on Veteran entrepreneurship.

Veteran Business Services, a Service Disabled Veteran Owned Business (SDVOB) will lead the collaboration. VBS currently focuses facilitating the Veteran franchises but also develops custom marketing programs for franchisors.

The second collaborating partner is VETtoCEO, which provides free state of the art online entrepreneurial courses.

VETtoCEO is also linked to GUST, an online investment source for both Veteran entrepreneurs and Angel investors. The collaboration’s third partner is Vet-Tech, a nonprofit incubation vehicle based in the Silicon Valley, which offers Veterans a comprehensive network of advisors for any startup, including innovative franchise concepts. Veteranscorp believes the collaboration of these three entities will provide a new holistic service

model, offering multiple on and off support ramps tailored to a Veterans’ business plan. In franchising, especially concept development, being able to use multiple resources simultaneously and in a custom fashion will offer a Veteran many advantages. These will include assessing or improving franchise concept strengths; obtaining the best values and best financing in franchising for Veterans; and perfecting franchise business plans with a best-in-class free entrepreneurial training. The collaboration’s holistic goals just might turn out be greater than the sum of its partners strengths.

So what is unique about the Veteranscorp collaboration?

For starters the VBS lead partner has already connected the collaboration to the Veterans Opportunity Fund (VOF), a venture capital fund exclusively for Veterans that was originally proposed

“It will take a “village” approach to fill a variety of Veteran entrepreneurs’ needs, so the Veteranscorp collaboration will be nurturing an army of volunteers.”

by VBS. The $30 million fund is now reviewing franchising business plans.

Although VOF is a national fund, it will initially focus its attention on the Mid-Atlantic region. The Veteranscorp collaborative partners will be able to “feed” opportunities to VOF. However, the ideas and business plans will need to be ready for prime time and also meet requirements for the targeted venture returns.

The next unique feature is that VETtoCEO not only offers state-of-the art entrepreneurial courses but also additional access to capital for the Veteranscorp Collaboration. VETtoCEO has an ongoing relationship with GUST, an entrepreneur and angel investor matching service. The VETtoCEO system will allow a Veteran to post their franchises business plan to GUST after completion of the VETtoCEO entrepreneurial course. The GUST system will permit special tracking for Veteran deals branded by the collaboration.

VBS also works with VETtoCEO to jointly access ‘immersive technologies’ available at the Veterans Administration to transitioning Veterans. Collaborating in this manner will help transitioning Veterans accelerate their business plans in a virtual setting whether they’re stationed in the U.S. or abroad.

Sometimes after initial support Veterans are left to their own devices. With the Veteranscorp model they’ll have the option to remain in the collaboration ecosystem to continue to incubate and improve as

many iterations of the Veteran’s business opportunity as he/she needs. An incubation aspect of the collaboration is provided by Vet-Tech. Although many believe that the Silicon Valley miracle can’t be duplicated, don’t tell that to Bow Rodgers at Vet-Tech, who have developed a unique Veterans initiative that was literally plugged into the famous Plug and Play incubator in Silicon Valley. Vet-Tech provides the collaboration both virtual and hands on incubation services for Veteran business ideas. Just as importantly the Vet-Tech model is replicable, immediately offers the collaboration access to Silicon Valley, and offers many professional service ‘guides’ led by young and old Veterans alike.

Services and capital are of course always necessary but not necessarily paramount. Just as important is having a knowledgeable guide to help explain the applicability and timeliness of possible resources for a Veteran’s priorities. It will take a “village” approach to fill a variety of Veteran entrepreneurs’ needs, so the Veteranscorp collaboration will be nurturing an army of volunteers.

If you’re a knowledgeable small businessperson who wants to get involved with the Collaboration, please visit: www. veteranscorp.org.

To accomplish its mission VBS requires a steady hand who relates well to Veterans. VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur

Jim Mingey

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 on the Veteranscorp Collaboration and its Partners go to: www.Veteranscorp.org www.VeteransBusinessServices.us www.VETtoCEO.org www.Vet-TECH.org VOF Business Plan review requests can be sent Chris College of TEDCO Capital Partners at ccollege@vof.vc

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Prop er t y M a nag ement I nc.

Property Management Inc. Recognizes Veter an Fr anchise Superstar “The great thing about PMI is that they do not tell me how to run my business, but they do provide me the support and systems that I need to ensure my success.”

Property Management Inc. (PMI), an international property management franchise company, has found that the Veteran community has been a great resource for new office owners. One of those successful Veteran franchisees is Mike Hansen, PMI of Central Kentucky.

After opening his doors March 1, 2013, Hansen was able to add nearly 100 doors including residential, commercial and multi-family properties to his portfolio, organize branch offices in the remote areas around Lexington, KY, and assemble a staff of property managers.

“We have found that our Veteran franchisees have a great work ethic, are well disciplined and are goal oriented.

Franchising USA

They know how to implement systems and monitor success,” said Steve Hart, PMI President. “Mike is one of our superstar franchisees and a true leader.”

Hansen is an U.S. Army Veteran who retired as staff sergeant (SSG) in February 2013, after an honorable discharge due to injuries received during a combat deployment rendered in Afghanistan.

These injuries left him ineligible to continue serving.

“When I began researching opportunities post-military, I decided I wanted to do something in the Real Estate industry. I was not, however, interested in just buying/ selling real estate due to the economic factors,” said Hansen. “I quickly realized that I could perform professional real estate management and buy and sell if I owned my own company. After speaking with several franchisors, I decided on PMI because of their expertise in the commercial market, which is where my interest lies.”

“After starting my initial operations, I quickly realized the potential after becoming more familiar with what my competitors were not able to do in the

Mike Hansen

property management industry. Being a part of the PMI family has allowed me to offer my clients and tenants services that just aren’t offered by most other companies, which makes it very easy to sell our services,” he explains.

“The great thing about PMI is that they do not tell me how to run my business, but they do provide me the support and systems that I need to ensure my success.

Purchasing a PMI franchise is the best professional decision that I have ever made and for the first time in many years, the thought of where I will be in the future is very exciting to me!”

For more information: Website: www.propertymanagementinc. com/

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Technology + Expertise

INTUITIVE AND SOCIAL

DAILY NEWS

Business platform

INTERNATIONAL PARTNERS

AZ Franchising the first Italian multichannel system supporting international enterprises to grow with franchising

.com Franchising USA

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Zoomin G roomin ®

Zoomin Groomin

®

Becomes Sponsor for Pets for Vets Zoomin Groomin®, a mobile pet grooming service, decided after working with Veterans in the franchise industry that they wanted to give back in some way.

With the help of Veterans Business Services, it was able to find an organization that not only relates to pets but also supports Veterans.

Zoomin Groomin® was able to develop a sponsorship with Pets for Vets, which is a national organization that pair’s shelter animals to match the owner’s personality, with Veterans who have returned with emotional and physical injuries and need help transitioning back to civilian life.

Professional trainers rehabilitate the pets and work with them to fit the Veteran’s

lifestyle. These rescued ‘pet companions’ help to heal the emotional wounds of brave, returning soldiers.

As a sponsor for Pets for Vets, Zoomin Groomin® franchisees in proximity to local chapters will provide their services for rescued pets being placed: • Provide discounts to the trainer at a reduced rate of 50 percent off of the standard price • Provide an on-going 10 percent discount per visit for the Veteran ‘pet parent’ for the life of the pet Zoomin Groomin® and Veterans Business Services work together to provide incentives for Veterans interested in starting a franchise. Zoomin Groomin® provides 20 percent off of the franchise fee for honorable discharged Veterans and VBS provides 20 percent of the franchise placement fee to help support their ongoing business.

Zoomin Groomin® is a national franchise mobile pet grooming and pet care company providing quality mobile grooming service, a dog walking friend, or caring pet sitter. Our Zoomin Groomin® franchisees service many communities throughout the United States. Zoomin Groomin® is the select method for mobile pet grooming and home pet care services because we offer reliable, convenient, and quality services for your pet. Our mobile grooming vans come to you, allowing you and your pets to stay in the comfort of your own home. Zoomin Groomin® mobile pet grooming services provide safety and comfort for your family and pet. Rest easy knowing your pet is in the hands of our highly trained mobile pet groomers, dog walkers, or sitters.

For more information: Website: www.veteransbusinessservices. us/product-item/zoomin-groomin/)

“These rescued ‘pet companions’ help to heal the emotional wounds of brave, returning soldiers.”

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Page 3

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ex per t advice

Dan Martin, President & CEO of IFX Online

Multi-Unit Franchising: Franchisees Are In The Driver’s Seat It’s always been the case, but never more so than during today’s economy: Franchisees are clearly a franchisor’s best asset.

The prime directive for both franchisor and franchisee has evolved to truly focusing on generating a positive and growing bottom line.

The Prime Directive In year’s past, the prime directive may have been a bit blurred. With equity “o’ plenty” and pre-recession financing readily available, franchisors often focused on granting more franchises rather than possibly primarily focusing on their franchisees’ bottom line. Let’s face it; just about every franchise concept made money back in-the-day when discretionary income was readily available and consumer confidence was high.

Franchising USA

Alas, the franchise development booms of recessions past have gone the way of the VHS Recorder and the 10-pound portable cellular phone. As such, the franchisor’s prime directive has evolved to focus on franchisee revenues, efficiencies and bottom line growth capitalizing largely on economies of scale.

Concentric Growth Franchisors have moved concentric unit growth stressing the development of geo-specific target markets in order to build brand density, increase local purchasing power, and amortize support costs. Concentric growth focuses the franchisor on a specific region, and more importantly, the relationships with franchisees within the region. When it comes to bottom line growth and when it comes to implementing growth measures in today’s economy, it’s all about morale.

When it comes to boosting morale in order to achieve unit economic growth, it’s all about relationships.

Business models, and in particular, franchise business models, have redirected focus to maintaining relationships between franchisees, franchisors, approved suppliers and customers. Now that concentric growth has led to hubsatellite structures within a geo-specific area, franchisors can more easily establish relationships with franchisees necessary to grow their bottom line.

It’s become affordable to support franchisees on a daily basis and/or provide them with proactive tools designed to help them better understand how they are doing in terms of their gross revenues, daily KPIs, efficiencies, morale and their bottom line.

The franchisor’s prime directive has shifted from selling franchises at any cost, to building relationships with franchisees and improving their bottom line… at any cost. This next-generation formula has one extremely attractive benefit: It can be replicated.

“Concentric growth + proactive relationships + proactive support = proactive and successful franchisees.”

You Are Your Franchisor’s Best Asset Franchisees have always been somewhat of an asset to both themselves and their franchisor, but nowadays they are the primary asset to both themselves and their franchisor. Franchisors who have recognized the shift in focus from selling new franchises to growing existing franchisees’ bottom lines, clearly accept the notion that their franchisees, a known factor, are their best asset.

Concentric growth + proactive relationships + proactive support = proactive and successful franchisees.

Economies of scale are beneficial to both franchisors and franchisees. They are clearly beneficial when injected into a concentric growth plan. The assets that franchisees bring to the table are significant and, in many cases, just now being truly leveraged by franchisors. It just makes sense to expand into multiunit ownership with your best team, your existing relationships, your existing success-mind and proven franchisees. If they are a franchisor’s best asset when they have one or two locations, imagine how much of an asset they’d be if they were given the rights to additional locations concentric to their own business development plans.

Moving to a concentric multi-unit model makes sense for everyone involved.

Franchisees who have recognized a certain pattern of success in their first unit are clearly best suited to replicate that success in their second unit. Moreover, they too can amortize their support costs among multiple units, much like the franchisor can with the entire brand using a concentric approach. What’s more, who stands a better chance of obtaining financing than existing, successful franchisees with actual earnings and a track record for applying the franchisor’s system? Lastly, why break-up the

relationship between franchisee and franchisor when adding multiple units?

As noted above, it’s all about relationships.

It’s all about known quantities. A franchisor can certainly grant a territory to a new franchise candidate and, once again, roll-the-dice. Or, a franchisor can approach an existing, proven franchisee with a multi-unit expansion plan that clearly mitigates the risk of failure by working with known elements and capitalizing on a known relationship.

You Are In The Driver’s Seat Franchisees are in the driver’s seat these days. As long as franchisors don’t cut off their nose despite their face and grant contiguous territories to different franchisees, they can open up opportunities for multi-unit franchisees to extend their success and put the franchisor at ease as it relates to forecasting the future of the brand.

Single-unit franchisee candidates should be considering the eventuality of becoming multi-unit franchisees, taking advantage of the same economies of scale that franchisors tend to capitalize on. The franchisor’s development team is best served implementing a multi-unit concentric growth program. Granted, there are negatives and it is still somewhat of a gamble for all involved. For example, the franchisor may need to place contiguous territories on-hold for a period of time and/or commit to a First Right of Refusal in order to secure future growth options for eventual mult-unit ownership. Further, it may be difficult for a franchisor to turn down a new franchise candidate interested in an adjacent territory that would be best served as a secondary territory for an existing franchisee. But, the long-term benefits of economies of scale, building the brand, maintaining relationships and securing growth clearly outweigh the short-term gain.

In affect, we have a business model inside a business model. The franchisor capitalizes on methodical and concentric expansion of their brand with a focus on the success of their franchisees. The franchisees capitalize on their own methodical and concentric expansion with a multi-unit approach. Everyone knows their role. Everyone capitalizes on economies of scale, which form the foundation of franchise success. Moreover, the franchisee remains in the driver’s seat.

Dan Martin, CFE is President & CEO of IFX Online, a Strategic Franchise Management Firm servicing 200+ franchise brands and 30,000+ franchisees since 1996. IFX’s Strategic Division and IFX’s Technology Division work hand-in-hand to assist franchise organizations in implementing key growth management strategies and applications designed to maximize operations and boost ROI. Mr. Martin has 30 years of experience in franchising, serving in the roles of franchisee, Area Developer and Advisor.

He has served on the International Franchise Assocation’s Board of Directors, Executive Committee, Membership Committee and Technology Committee. Mr. Martin was Chairman of the IFA’s Supplier Forum Advisory Board and is a Certified Franchise Executive.

For more information: Website: www.ifxonline.com

Dan Martin

Franchising USA

ex per t advice

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f ra nchisee in action

3 Potato 4

Joining the P ot a to R e vo l u t i o n :

Jehan Strouse A Minneapolis native with a degree in nutrition, Jehan Strouse migrated to New Orleans where she co-organized the NOLA Veggie Fest for five years before opening her very own 3 Potato 4 location.

Franchising USA

Growing up in a supportive, loving environment, Strouse recalls nothing but good memories from her childhood.

As part of a half-Egyptian family, at the age of six her family moved to Egypt.

Living there for 12 years, this resulted in strong family ties, and the ability to speak both Arabic and French. Returning to the U.S., she spent some time moving around before settling in Seattle where she attended Bastyr University and earned her Bachelors in Nutrition.

After graduating she ventured to New

Orleans and pursued a full time career as a broker of natural products. Then, while attending a wedding in Providence, Rhode Island in October 2012, Strouse ventured to Salem and was introduced to the company that she today is so proud to be a part of.

Visiting a strip-mall in a popular part of town, here Strouse found a 3 Potato 4. Intrigued by the concept she struck up a conversation with the employees and found out the restaurant was a new franchise that was just getting started. “I

“When people find my restaurant, love the food, and thank me for being there in a city like New Orleans that is known for its greasy and unhealthy food, that’s the best feeling.”

was immediately interested in what the brand had to offer,” she says. Prior to her discovery Strouse had been interested in starting up a steampunk style vegan coffee shop, but was challenged with many roadblocks. “When I found 3 Potato 4 I realized it offered me the chance to be flexible with carrying some of my favorite vegan and gluten-free products and drinks.”

Offering an eco-friendly, biodynamic approach to a national franchise brand, 3 Potato 4 serves up delicious organic, baked-not-fried potato fries in its streamlined 1950’s themed restaurants.

Focused on being green, the restaurants feature a variety of gluten-free, 99 percent fat-free, non-GMO, hot ‘n’ crunchy potato snacks. Along with the popular super food, all menu items are vegan or vegetarian, including the 50 innovative made-in-house signature dipping-sauces, dairy-free soups, fair trade beverages, and desserts.

Contacting Guenevere Blanchard, founder and CEO of 3 Potato 4, Strouse says their shared philosophies set way for a comfortable, strong relationship between the pair. “I saw opportunity in the concept and I wanted to bring it to New Orleans.

I had been involved in organizing the NOLA veggie festival for five years but stepped down to build my franchise and have an impact on vegan things year

round versus working hard for a weeklong festival,” she explains. “My passion was driving me to do it.”

Starting the franchise process at the tail end of 2012, Strouse’s 3 Potato 4 restaurant opened seven months ago. “It took a while to manifest in the build out, find the location, and get the pieces in place, but it was worth the wait,” she says.

A fan of the easy concept, supplied marketing and national branding, the company’s established website and menu templates made it possible for Strouse to continue employment as a natural products broker while also launching a franchise.

“The simple concept meant that I could hire a manager to help out in the store and it would be easy to train them. The extra help makes it possible for me to conquer and divide between my two jobs.”

Describing the franchise process as extremely supportive with excellent training, Strouse says Blanchard’s managing style is very fair and that her clear communication provided a loaded package of franchising instructions.

Covering what is expected from the

franchisee as well as equipment required, Strouse says the entire process was a positive experience.

Provided with ongoing support through branding and online forums, Strouse and Blanchard chat on a weekly basis to discuss business politics and brainstorm new ideas. “If I need new flyers or signage all I have to do is ask,” Strouse says, adding that she really loves the restaurant’s theme and catchy art.

Actively involved with her franchise, Strouse has put into play several unique ideas to drive traffic since opening. For a short period of time she implemented two-

Franchising USA

f ra nchisee in action

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f ra nchisee in action

3 Potato 4

“It’s not just because the cost is great, but it’s also to be part of the revolution 3 Potato 4 has begun.”

wheel-Tuesdays, encouraging customers to bike to the shop for discounted treats; an event she may revisit once her beer license is in place. Other events focus around health, veganism, and other types of social and educational workshops.

“We held a vegetarian and vegan singles event that was a hit, and are hosting a Meat-Out event to celebrate the national day of eliminating meat from diets,” she says. “We’re also excited to be a part of the NOLA vegan bike ride and have participates meet in our shop.”

Using her connections in the vegan scene to organize the events that will help draw people in and generate interest in relatable topics, the main goal is to bring in customers.

“We have plenty of fun stuff planned, but overall the events are for the greater good of the company,” she explains. “I’m doing things different from a standard franchisee, and while I could have run my business in a 300sq ft store, mine is 920sq ft because I wanted something bigger so I could host events, have more seating and provide a hangout spot. We have Wi-Fi here, and lots of different resources like literature and books on hand for customers.” Getting into the rhythm of the business, Strouse says she is getting busier by the day, and has perfected the right hours to operate.

For Strouse the most rewarding experience has been her happy customers. “When people find my restaurant, love the food, and thank me for being there in a city like New Orleans that is known for its greasy and unhealthy food, that’s the best feeling,” she says. “I’ve made a lot of

Franchising USA

people’s days by being here, being open, and serving awesome, healthy food.”

Proud of her product, Strouse says it’s important to offer this type of food because it’s what people are looking for: cutting-edge, vegan, gluten-free, organic, non-GMO food. “I’ve been working in the natural products industry for 15 years and it’s booming and growing exponentially.

People are waking up and realizing that they can have their cake and eat it too.

They can have amazing, healthy, crueltyfree food that tastes great and at the end of the day isn’t going to give them cancer, a stomach ache, or indigestion.”

Lacking in challenges with the company, Strouse says the staff are wonderful and very easy to work with. “Anyone who has the opportunity to open up a 3 Potato 4 franchise should. It’s a brilliant concept

with low start up costs, and if you open it in the right area everyone will do great,” she says.

“To bring an awesome concept to a new area and be on the ground floor of a franchise that I foresee growing into something very big is amazing,” she says.

“Larger franchises cost a lot more to buy into, and being on the ground floor is important in several ways,” she explains.

“It’s not just because the cost is great, but it’s also to be part of the revolution 3 Potato 4 has begun.”

When Strouse isn’t busy working she enjoys riding her motorcycle, spending time with her dogs, traveling, practicing yoga, cooking, and dining out at the best vegan restaurants she can find.

For more information: Website: www.3potato4potato.com/

al of all digit t n e rc e p in “90 s created matter wa o years.” the last tw

“The cloud is nothing to fear.”

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ex per t advice

Bob Epperly, Former Executive at Exxon Research

5 Tips for Ensu Desirable Life With reports of the unemployment rate dropping to seven percent, lower than it was even five years ago and down from a peak of 10 percent in October 2009, many are breathing a sigh of relief.

But the effects of a long bout of high unemployment are sure to have thrown off the balance of employee wellbeing. Of course, the rate does not take into account those who are underemployed, including over-skilled workers in menial jobs and those with too few hours.

For those lucky enough to have decent employment, many feel insecure and are willing to skew their worklife balance into a tailspin, with exaggerated emphasis on their career. As a CEO I realized at age 55 that even a very successful career cannot fulfill every aspect of life.

Most people cannot afford to simply refuse the demands of their job, so what’s a worker to do?

As author of “Growing Up After Fifty: From Exxon Executive to Spiritual Seeker,” I offer tips for correcting lifestyle imbalance.

It’s never enough.

Ambition is admirable, but if it’s all that drives you, no matter how much you accomplish, it will never be enough. If professional ambition is more important to you than anything else in your life; that’s a red flag that

Franchising USA

uring ifestyle your life is dangerously unbalanced.

The consequences will be painful feelings of emptiness, lack of fulfillment, and having missed out. Take steps now to restore balance, beginning with personal, non-work relationships.

No one ever says, at the end of their life that they should have worked longer and spent less time with family.

When it’s all said and done, life is short, and many realize that time is life’s most precious resource. Intense focus on work tends to deprive professionals of opportunities with their loved ones – moments and memories that cannot be replaced. Set goals for how much time you’ll spend giving your family 100 percent of your attention each day and week, and stick to them!

Make communication a top priority!

The importance and value of real communication cannot be overemphasized.

More important than speaking is listening.

My relationships immediately improved when I began listening very carefully to what was being said.

Bob Epperly

Only you are responsible for you life.

is?’ I suddenly saw that I had always felt I

had to accommodate; that I wasn’t okay as

The Serenity Prayer goes a long way in work-life balance; it reads:

I am. I started to give myself permission

“God, grant me the

Bob Epperly worked in management at

serenity

to accept the things I cannot change, the courage to change the things I can, and the

wisdom to know the difference.”

Recognizing I am responsible for my life and focusing on the aspects of it over which I have influence has been pivotal.

to be me.

Exxon Research and Engineering Co. for more than 20 years, finally becoming a general manager, and later was a senior executive in two startup companies.

Having spent much of his professional life creating win-win environments for employees and employers and coauthoring a book entitled, “Interactive Career Development: Integrating Employer and Employee Goals”, he now coaches people who seek lifetransforming career change.

During the last quarter century, he has made spiritual self-realization and psychological integration his top priorities. Epperly and his wife, Sarah,

Accept who you are.

live in Mountain View, Calif., and

This can be challenging; it demands courageous self-reflection and letting go of the need for external approval. When a friend asked me, ‘Do you think the world is ready to accept Bob Epperly just as he

have three grown children and four grandchildren.

For more information: Website: www.newsandexperts.com

Franchising USA

ex per t advice

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ex per t advice

Ronald Fieldstone, Partner at Arnstein & Lehr LLP

EB-5 Capital

for the Franchise Industry Direct (or individual) projects, in which the investment must create at least 10 jobs itself, and regional center-based projects, in which several investors combine their investments into much larger projects with significant direct and indirect job-creation benefits.

Ronald Fieldstone

The EB-5 Immigrant Investor Program (the “EB-5 Program”) has become one of the most popular forms of alternative financing.

Under the EB-5 Program, each investor invests $500,000 (in rural areas or areas with higher than average unemployment) or one million dollars (everywhere else) into a project. The principal criteria are that the investor’s capital infusion must create at least 10 jobs for U.S. workers, and maintain those jobs for two years or more. If these criteria are met, the investor and his or her immediate family receive permanent residence (a green card), allowing them to live in the United States (and incorporating their worldwide income into the U.S. tax system).

There are two types of EB-5 structures:

Franchising USA

Given the popularity of the EB-5 Program among Chinese citizens (same accounted for approximately 80 percent of EB-5 capital raised for fiscal year 2013), U.S. developers have largely focused their marketing efforts in China. The success of EB-5 in China largely relates to the sophisticated network of migration agents and their connections to the wealthy Chinese class. Yet, a looming and rather complicated visa quota may take effect in the next fiscal year, possibly causing the Chinese investment market to begin losing some of its appeal.

The required investment level is one million dollars unless the investment is made into a business located in a “targeted employment area” (unemployment rate that is 150 percent or more of national coverage), a rural region (population less than 20,000) or a “troubled business enterprise” (at least 20 percent decline in value over the past 12 to 24 months), at which time a reduced investment of $500,000 is required.

To meet the competitive demand for investor capital, four main factors in the evaluation process include: 1. The amount of money being invested by the developer/sponsor in the project or the applicable business, with typically a minimum equity investment of 25

percent of the total project cost.

2. The quality of the sponsor group and its prior track record in similar types of operations.

3. The quality of the business itself and whether it includes identifiable brand names or special situations, such as nationally branded hotel chains, restaurant or retail operators.

4. The safety of the job creation of the 10 jobs per investor.

Regional Center and Direct Program Investing in a regional center additionally provides flexibility through the acceptance of indirect job creation as part of the job requirements. As of February 1, 2013, there are 251 approved regional centers, operating in 45 states, including the District of Columbia and Guam.

Approximately 92 percent of the individual Form I-526 petitions filed each year are filed by foreign investors who are investing in regional center-affiliated commercial enterprises.

With respect to the franchise industry, franchisors and franchisees alike can pursue the direct investment program whereby EB-5 investors invest directly in the franchise enterprise rather than having to go through a regional center. If a regional center is not being utilized, only direct employment jobs will be included in determining whether the 10-job per investor test has been satisfied. The structure for a chain retail establishment would include the following:

“Franchisors and franchisees alike can pursue the direct investment program whereby EB-5 investors invest directly in the franchise enterprise rather than having to go through a regional center.”

Franchisor/ Franchisee

EB-5 Investors

HOLDING COMPANY

Common Equity

Preferred Equity

UNIT 1

UNIT 2

UNIT 3

100%

100%

100%

1. Formation of holding company that would have subsidiary entities that would own the retail facilities.

2. The EB-5 investors would invest preferred equity in the holding company and receive a fixed-dividend return. The franchisor or franchisee would also invest in the holding company and own the common-equity interests.

should be the capital account plus any accrued preferred returns.

The EB-5 investors would, therefore, have an exit strategy to receive a return of their capital investment. The significant advantages to the direct program include the following: 1. Ease of execution since there is no need to go through a regional center.

2. No need for an economic study since the reliance is totally on direct job creation and, therefore, the holding company/ employment company would just need to provide W-2 employee information.

When the necessary two-year investment condition has been met and the proof of employment has been provided, an I-829 petition is filed that will enable the lifting of the temporary green card restrictions and cause the green card to become permanent in nature.

The regional center or direct investment program offers a unique opportunity to enable the franchise system to raise debt or equity capital at very reasonable rates to enable the development of additional corporate or franchise units.

Ronald R. Fieldstone is a Partner at Arnstein & Lehr LLP Miami office who specializes in EB 5 corporate, real estate and taxation.

Since 2009 Mr. Fieldstone has actively been involved in serving as corporate, securities counsel for multifaceted industries, involving real estate funds and specializing more recently on EB-5 immigrant visa investor offerings (“EB-5”). Mr. Fieldstone represents a vast number of Regional Centers in EB-5 offerings.

For more information: Website: www.arnstein.com/

3. Since the holding company will own a 100 percent interest in all of the subsidiary entities, under USCIS guidelines, all jobs created by the subsidiary entities would otherwise count toward the 10-job requirement for each investor. The subsidiary entities could also not only include the operating entities, but separate entities that may own real estate interests as well.

4. When the investors finally receive their I-829 approval after the minimum time period for investment of two years has been satisfied and proof of job creation has been provided, then the holding company could redeem the investors’ interest for the fair-market value, which

Franchising USA

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f ra nchisor in depth

Total Woma n Gy m + Spa

Geared to Franchi Total Woman Gym Total Woman Gym + Spa is the largest, fullservice gym and day spa in California. With almost 50 years experience of helping women achieve their health, fitness and wellness goals, today the iconic brand is looking for passionate entrepreneurs to join its team.

Franchising USA

Founded in 1965 by Art Stone, business owner and operator of a Los Angeles based chain of beauty salons; the concept for a female-geared gym came to him through his predominately female clientele. As they discussing the need for a place that could offer the weight-loss results of a gym along with the pampering of a day spa, and ideally, be available to only women, Stone then launched his first health club with a single store called World for Women in West Los Angeles.

This first location provided his clientele exactly what they had been asking for, resulting in an instant success. In 1983 Adrienne Stone joined forces with her

husband and together the couple began expansion the concept to incorporate fullservice day spas that included facials, body treatments, massage, aromatherapy and manicures. With this added service the name of the brand also changed to what is known as today: Total Woman Gym + Spa. With 15 corporate owned and operated locations across Southern California, in 2013 the brand began seeking new ways to take the successful business and build the brand outwards and into other markets across the United States. Finding the answer in franchising, Total Woman Gym + Spa now have a pipeline of franchisees in their final stages of qualification and

“We live and breathe the brand everyday, so our franchisees are going to get the most thorough training imaginable” vast range of services giving the gyms the upscale look and feel of a five star day spa.”

nchise:

+ Spa are looking forward to launching its first group of franchise locations.

“It’s a completely underserved marketing in the U.S.,” says Ben Amante, Franchising Consultant for Total Woman Gym + Spa. “There is very little available regarding full service gyms geared for women.”

Referring to the many small gyms that have popped up around the nation, one of the biggest differentiators between Total Woman and these studio-like locations is the size. “Total Woman Gym + Spas range from 11,000 to 14,000 sq ft and offer group exercise classes, yoga, pilates, as well as strength training equipment,” he says, adding, “The spa also offers a

Serving two demanding markets under one roof, the fitness and wellness industries are booming. According to fitness industry source, IHRSA as well as AMTA, ISPA for the Spa/Massage therapy industry, both these industries represent approximately $30 billion annually and have seen modest sales growth in the U.S. even during the recession. As gym membership numbers have increased considerably over the years, rising from 36.3 million in 2002 to more than 43.6 million in 2012, the 2010 and 2011 AMTA Consumer Surveys also shows that roughly 38 million adult Americans had a massage at least once within a year.

“If you look at the options that women have when it comes to finding a gym that’s full sized and features all the equipment a co-ed gym offers, as well as lockers, showers, state of the art group exercise classes and a full service spa, outside of Total Woman Gym + Spa none exist,” says Amante. “Bigger co-ed gyms are still growing and they don’t want to take their eyes off their segment, so that leaves our geared for women segment wide open.”

With an open horizon, Total Woman Gym + Spa is in a precious position right now.

“Franchising fits into the business model so well because it allows us to grow across all the top cities in the U.S. without costing millions and adding the chaos of operating them ourselves. It’s much smarter to enlist entrepreneurs and franchise the concept,” explains Amante. “For almost 50 years all the locations have been company owned and operated and now that we’re franchising it we’ll be passing on ample knowledge. We live and breathe the brand everyday, so our franchisees are going to get the most thorough training imaginable.”

Now seeking individuals that love fitness, have a passion for changing lives, and want

to make a living by investing in a business that provides people with better health and wellness, Total Woman Gym + Spa is actively looking for entrepreneurs to join the team. Screening franchisees carefully to ensure the brand’s high standards will be maintained by capable and dedicated franchise partners, other requirements include $450,000 to $650,000 liquid capital, net worth of at least two million dollars, a solid credit score, and a history of leading a successful business as an owner or senior operating manager. With a franchisee fee of just $30,000 for a 10 year franchise agreement, those interested can visit the website to learn more about the brand, fill out an inquiry, and set up an interview. “The discovery starts the minute we first speak to a candidate,” says Amante, adding that during the first few chats the individual will share their experience, interests in owning a location, and desired market. After these initial talks, the candidate will then visit the corporate team in Westlake Village, CA for a formal face-to-face Discovery Day and tour of some of our locations.

If a candidate is awarded a franchise the next step is a three-phase training process.

Reflecting the corporate team’s own experience with operating the locations, the entire program has been designed in a thoughtful manner intended to cover every aspect of running the business. During phase one of the training the franchisee will undergo in-class learning and meet with the company’s knowledge experts.

Phase two is designed as a case study, and outlines the learning objectives and outcomes of hands on training inside of an operating location. “This stage of training starts with turning on the lights at 5a.m. and ends with turning them off 11p.m., covering everything in between,” explains Amante. “The goal is to expose the franchisee to everything that occurs on a daily basis so that when they complete this step of training they will have a strong grasp on life as a franchisee and know what goes into successful running a Total Woman Gym + Spa.” The last phase of training involves the corporate training team visiting the franchisee’s location to help set up for the presale, assist with training employees, and prepare for grand

Franchising USA

f ra nchisor in depth

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f ra nchisor in depth

Total Woma n Gy m + Spa

“Four major drivers of opportunity in the South are climate, economic opportunity, cost-ofliving and a growing awareness of the region’s business-friendly environment.” years is by being a strong member of the community.”

Seeing as Total Woman Gym + Spa is the only full service gym geared for women on the market, it’s competition is nonexistent. “Some people ask how we’re different from our competitors but we have to ask, ‘like who?’ Our goal now is to grow in as many cities, with the best location and the best franchisees before we have to start to differentiate from others who catch on to the niche,” says Amante. “Its like an O-M-G where this is completely the blind side to the industry.” opening. “The training team is there every step of the way,” says Amante, adding, “No one is going to learn how to run a business by just sitting in a classroom!”

In addition to the comprehensive training program franchisees also benefit from ongoing support through an assigned Franchise Business Consultant. Assisting with developing an annual business operations plan, this consultant also helps plan and measure the franchisee’s success, while finding solutions and improvements to any issues they encounter along the way.

As part of the brand’s vendor program, franchisees will also have guidance with developing their location. Providing franchisees with the architectural design, permitting, construction, as well as options regarding purchasing or leasing the equipment, the entire process has been tried and tested by the corporate team over the years. “It’s a turnkey process that allows us to focus on the most important thing while getting ready to launch, and that’s developing a membership base through presales. This means that when we open our doors we’ll already have an existing membership base.”

Currently focused on expanding in key

Franchising USA

markets throughout the Southeastern and Southwestern states and along the west coast, the shift in demographics and population throughout these areas has been explosive, which means ample opportunity to succeed. “From 2000 to 2010, Southern States grew 14.3 million versus Western States at 8.7 million, with the South attaining a new 10-year growth margin at a much greater rate than the West,” writes Amante in an article featured in Franchise World titled “Where’s Franchising’s Growth.” He also goes on to explain how the South has become home to one-half of the top 10 growth states and seven of the top 10 fastest-growing cities. “Four major drivers of opportunity in the South are climate, economic opportunity, cost-of-living and a growing awareness of the region’s business-friendly environment,” he adds.

Concentrating heavily on social media marketing, Total Woman Gym + Spa’s best publicity comes through referrals from existing members and the company’s drive to be an active part of the community. “It’s important for us to reach out to women in the community and have that touch point,” explains Amante. “Our strongest way to continue to grow as we have over the

One of the biggest advantages to owning a Total Woman Gym + Spa is that when you buy one franchise, you’re getting two businesses that are in high demand under one roof. Also taking into consideration the company’s service-based business, unlike businesses that sell a product, Total Woman Gym + Spa offers a lowcost-goods sold. “Franchisees don’t have to make anything, but rather provide a service which is delivered with labor.

While everyone has labor we bypass having a significant cost of goods sold and don’t have to worry about managing inventories, various SKUs, spoilage, or shortages,” says Amante. Also a plus is joining a team that is first in the market with a national brand that has honed its expertise with over five decades of experience. “We’re geared for women, and we’re first to market on a mass scale,” he adds.

With limited competition for in this sector, Total Woman Gym + Spa offers great opportunities with some of the best markets available in the U.S. “For those who are considering purchasing a franchise, Total Woman Gym + Spa should be on your shortlist,” concludes Amante.

For more information: Website: www.totalwomanfranchising.

Page 75

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