Franchising USA - December 2014

Franchising usa T he ma g a z ine for franchisees

VOL 03, ISSUE 2, dec 2014

$5.95 www.franchisingusamagazine.com

Outdoor Living Brands H a s Am e r i c a n s Covered The

Greatest Gift Yo u Ca n G i v e

M a i n F e at u r e

Retail 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 3, ISSUE 2, dec 2014 president: Colin Bradbury. colin@cgbpublishing.com

Publisher: Vikki Bradbury. vikki@cgbpublishing.com

Editorial Department: editor@cgbpublishing.com

Editorial team: Rob Swystun Stephen Kelly Gina Gill

Advertising Sales: advertising@cgbpublishing.com

Production: Samantha Klimecki. usaproduction@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: Outdoor Living Brands Chris Grandpre

CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 778 426 2446 Editorial: 778 426 2446 www.franchisingusamagazine.com Proud member of the IFA:

SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org

from the

Publisher It’s beginning to feel a lot like Christmas…and let’s face it – Christmas time means shopping time.

It’s a busy time of year and we all need a little retail therapy.

The Holiday Season is also a time when many people stop to reflect and possibly look at realising their dream of starting their own business. So what better subject for our feature article this month than Retail Franchising? Our regular contributor Rob Swystun looks at the seemingly endless opportunities and why choosing a retail franchise is a good option.

Our December issue is jam packed with helpful advice from our industry experts no matter where you are in your franchising journey. Jenna Oltersdorf shares some great media tips for franchisees and George Knauf reminds us that the greatest gift you can give your family this Christmas is You! For those just starting out, David Banfield asks “Are You Ready?” and Dale Willerton and Jeff Grandfield give us “Six Questions You Must Ask Your Franchisor before Leasing Commercial Space”.

We focus this month on two great franchise options, Metal Supermarkets and The Pizza Press and we look in depth at DirectBuy who have experienced continued growth over the last four decades.

Our ever popular Veterans Supplement is filled with news and stories of our Veterans making their transitions to the franchising world including that of Kyle Faulkner, a retired Marine and 3rd generation carpenter who is now enjoying success as an Archadeck franchisee.

And don’t miss our story on Christmas Decor who are bringing joy to military families with their nationwide Decorated Family Program. The beautiful images of the homes they decorate are truly inspiring.

I think it must be time to stock up on Christmas Decorations…….. I love a little retail therapy!

Finally, I would like to say a big thank you to you all for being a part of the Franchising USA family this year. On behalf of all of our team, I wish you and your families a safe and happy holiday period. We look forward to sharing your franchising journey with you again in 2015.

Merry Christmas!

Vikki Bradbury Publisher

The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

Franchising USA

december 2014

On the Cover

30 Feature Article

10 Cover Story

Retail Franchising

62 The Greatest Gift You Can Give

George Knauf, FranChoice

56

Outdoor Living Brands

34

12 In Every Issue

06 Franchising News Announcements from the Industry

30 Feature Article

Retail Franchising 39 Veterans Supplement

News and Information for Veterans in Franchising

Franchisor in Depth 18 DirectBuy

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62

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Contents

f ra nchising usa

12 Funding. Don’t Fear – There Are Options Diane Rosenkrantz, Tenet Financial Group

64

Expert Advice

16 Preparing for a Cyber Attack Adam Heitzman, HigherVisibility

22 5 Ways to Make Franchisees Feel Like Part of the Team Kyle Zagrodzky, OsteoStrong

28 Six Questions You Must Ask Your Franchisor before Leasing

Commercial Space Dale Willerton & Jeff Grandfield, The Lease Coach

24

24 Is Your Corporate Structure Stifling Your Franchise?

Terry Powell, The Entrepreneur’s Source

34 6 Steps to Franchise Success in an Urban Area Karim Webb, Buffalo Wild Wings Grill & Bar

54 Are You Ready?

David Banfield, The Interface Financial Group

56 Media Tips for Franchisees Jenna Oltersdorf, Snackbox PR

58 What if it Doesn’t Work Out? Jason Power, Shelton & Power

62 The Greatest Gift You Can Give George Knauf, FranChoice

66 Understanding Human Behavior Will Help You Lead Andy Roe, SurePayroll

12

64 Franchising Vs. Licensing Christopher Conner, Franchise Marketing Systems

Focus 36 Metal Supermarkets 60 The Pizza Press

Franchising USA

f ra nchising usa

what’s new!

Burger 21 Signs Franchise Agreements to Open First Restaurants in Chicago & Dallas Burger 21 has signed a franchise agreement to develop its first restaurant in Chicagoland, marking the brand’s entry into Illinois. Additionally, the company signed a franchise deal for the development of one restaurant in Dallas.

“We are thrilled to announce the signing of these new franchise agreements that will bring our chef-inspired brand to Dallas and Chicagoland for the very first time,” said Mark Johnston, president of Burger 21. “With the development of these new restaurants, we see great potential to further expand the brand’s footprint in both Texas and Illinois.”

experience with McDonald’s and plan to develop the first Illinois restaurant in the Rosemont area of Chicagoland, which is slated to open by fall 2015.

Additionally, Ken and Chantrell Goodgames plan to develop their Burger 21 location in the Irving-Las Colinas area of Dallas. Ken will oversee the restaurant’s daily operations when it opens in the latter half of 2015. The franchisees plan to open additional locations in the Dallas market over the next few years.

Burger 21 currently has 15 open locations and more than 20 franchised restaurants in development across the country.

Ed Karayanes and Art Chmiel bring years of multi-unit restaurant operations

For more information visit: www.burger21.com

Safety Commission said that an estimated “13,000 people were treated in emergency departments nationwide due to injuries involving holiday decorations.”

Climbing and manoeuvring ladders to

Men In Kilts CEO Tressa Wood says, “We love helping homeowners complete jobs that they don’t have time to do, and sometimes shouldn’t be doing themselves.

season and let us help you out!”

Men In Kilts Will Clear Your Snow and Hang Your Christmas Lights The weather is changing and winter is on its way, but the good news is that several Men In Kilts locations will begin offering a snow removal service to help customers get through those blistery winter months; and yes, they will still wear their kilts while clearing snow.

Men In Kilts Founder Nicholas Brand says, “Snow Removal is a great service to provide and adding on this service keeps our locations busy throughout the winter and help our customers out.”

Another service being offered in many locations this year is Christmas light installation.

In the United States the Consumer Product

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hang Christmas lights can be a pain, but it can also be dangerous if you do not know what you are doing. Be safe this holiday For more information visit: www.meninkilts.com

European Wax Center Announces Record Breaking Growth Solidifies Position as Leader in the Waxing Services Category in America today. Despite the economic

With the waxing category continuing to

growth over the past six years, expanding

EWC is holding steady in its dominant

downturn, EWC has seen record breaking European Wax Center (EWC) announced today projected growth of more than 45 percent for 2014. With 658 franchises nationwide, 121 of which were signed this year alone, EWC is the absolute brand leader in the beauty waxing services category.

European Wax Center is also one of the fastest growing beauty service brands

from six locations to over 658. This type of

experience growth in the beauty market, position. The beauty service brand

rapid growth, especially in a down market,

serviced over 6.9 million guests in 2013,

success can be attributed to exceptional

the most popular waxing service. These

and products with a belief that luxurious

positive trajectory of the EWC brand.

is unprecedented. The brand’s continual

including 1,657,938 brow waxes which are

customer care, premium quality services,

numbers clearly illustrate the continued

waxing should be attainable to anyone

For more information visit:

seeking beautiful skin.

www.waxcenter.com

Togo’s Opens 254th Store California avocados, sets Togo’s apart from other sandwich shops. The company stands behind its world-famous #9 Hot Pastrami Sandwich with a money back guarantee if customers can find a hot pastrami sandwich they like better.

“We’ve been hooked on Togo’s since our first bite,” says franchisee Debbie Jenkins of her and her husband’s decision to open a Togo’s in Rexburg. “We sincerely love the food and know the people of Rexburg will love it too.”

On Friday, November 21st, “West Coast Original” Togo’s Eateries, opened its 254th store in Rexburg, Idaho.

The Rexburg location marks its first

restaurant in Idaho with plans to open

second and third locations in Idaho Falls

in January 2015 and in Colorado later this year.

Renowned for its big, fresh and meaty sandwiches, Togo’s piles on the premium ingredients with one-on-one deli-style service. Fresh artisan breads, premium, hand-sliced meats and freshly-scooped

“Idaho is a natural expansion from California,” said Renae Scott, Togo’s chief marketing officer. “There are many California transplants up here, and Togo’s fans based in Idaho have been asking us when we’re coming for quite a long while.

Rexburg is an excellent city to make our Idaho debut in, as it’s a growing city with a heavy university population, a perfect combination for Togo’s,” Scott said.

For more information visit: www.togos.com

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what’s new!

Crushed Red Award-Winning “Artisan Fast” Restaurant Concept Poised for Growth “We’re excited about our expansion into Colorado with JAM

Mgmt and are looking forward to bringing Crushed Red to even more areas in 2015 and 16.” states founder Chris LaRocca.

But LaRocca has even more to be happy about. Crushed Red is set to open three new company owned stores in 2015 in the St. Louis area and has caught the eye of international investors looking to franchise Crushed Red in the Middle East.

The popular concept is one where guests can create their own

organically dressed chopped salads and individual pizzas from a

variety of fresh toppings or they can choose one of Crushed Red’s Urban Crafted creations. Additionally, guests can select from the all-natural soups (three offered daily) or unique appetizers the

restaurant dubs “shareables.” The food preparation is fast – with pizzas delivered straight to your table in about 5 minutes – and The wildly popular St. Louis based Crushed Red® Urban Bake and Chop Shop®, which recently introduced its innovative “Artisan Fast” concept to franchisees, will open six new restaurants over the next four and a half years in the Denver and Boulder, Colorado areas.

comfortable interiors that invite guests to linger and relax, even if they’re in a hurry.

This exciting franchise opportunity is being offered to investors nationwide.

For more information visit: www.crushed-red.com

Welcyon, Fitness After 50, Expands With Three New Franchise Deals Welcyon, Fitness After 50, a Minneapolis-based chain of health clubs specially designed for adults over 50, has signed three separate franchise deals to open three clubs, expanding its system to seven locations. The new clubs will be located in Burnsville, Minnesota; Boise, Idaho; and Las Vegas, Nevada.

These latest agreements are part of the brand’s continued effort to provide a welcoming and personalized fitness environment where people 50 and over can achieve their best health.

Welcyon clubs feature a structured fitness program consisting of strength and cardiovascular training, as well as stretching and balance exercises. Specially trained fitness coaches guide workouts on

Franchising USA

equipment that uses air instead of weight stacks to create resistance, build strength and minimize the risk of injury. The equipment is also powered by Smart Card technology, allowing members the ability to track their individual workouts and progress.

To date, Welcyon has four clubs open throughout the Midwest and hopes to open at least 10 additional locations nationwide over the next 12 months. The company’s long-term goal is to have one million members, a realistic aim when you consider more than 100 million Americans are 50 and over and make up the fastestgrowing health club consumer group.

For more information, please visit: www.welcyon.com

ROCKIN’ JUMP – The Ultimate Trampoline Park® Franchise – Announces 30th Franchise Agreement Park will be a Flagship Property Co-Owned By ROCKIN’ JUMP’s Franchise Marketing & Sales Director San Francisco Bay Area based trampoline park franchisor ROCKIN’ JUMP® continues to prove a favorite of both consumers and investors throughout the USA. The company has been franchising since June 2013 and now is announcing its 30th agreement and lease for a flagship location in Madison, WI at 2700 Novation Parkway. The park is scheduled to open in the spring of 2015.

Opening the doors to Madison’s first trampoline park is Aaron Bakken, a Madison area native, along with two additional local partners. Bakken is also

the Director of Franchise Marketing & Sales for ROCKIN’ JUMP, and has been with the company since 2010.

This 28,000+ square foot flagship location will operate under ROCKIN’ JUMP’s industry leading safety program and feature all of the standard trampoline park attractions plus multiple private party rooms, a 3-story rock climbing wall, the super popular X-Beam where kids have a blast trying to maintain their balance while sending their opponent falling into the pool of foam below, the amazing “Tripwire” laser maze obstacle course, a Vertigo high jump platform, and an onsite

café offering both comfort and healthy food options.

Few franchises can boast having a marketing & sales director that is also a franchisee.

For information on franchising opportunities visit: http://franchise.rockinjump.com

9Round: Knocking Out the Competition expanded its footprint to include 166 locations in 36 states and Canada, 136 of which have opened since the beginning of 2013. With more than 100 additional locations in various stages of development, 9Round expects to have a total of 1,000 clubs open and operating by 2018.

The world of fitness franchising has grown dramatically in recent years.

And in a landscape once dominated by big-box gyms, the expansion of smaller, more specialized facilities is rapidly gaining ground.

One fitness concept that, more than any other, has achieved a competitive edge over the market and shows no sign of slowing down, is 9Round.

Founded by reigning IKF Light Middleweight Kickboxing Champion of the World, Shannon “The Cannon” Hudson, 9Round workouts consist of nine, three-minute stations of activities that include cardio, weight training, abdominal exercises and kicks and punches on 100pound, double-end, upper cut and speed bags. A real boxing bell rings to begin the workout, another to warn the station is ending and a third to signal the end.

Members have a 30-second active break between rounds, which means doing small workouts with bags, as well as sit-ups and push-ups.

In the five years since launching its franchise opportunity, 9Round has

For more information, visit www.9round.com

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cov er sto ry by Rob S w ystu n

O u tdoor L iv ing B ra nds

From Design to Pest Control

Outdoor Living Brands Has Americans Covered

Outdoor Living Brands has come together over the last several years to form a group of franchises dedicated to catering to the great American pastime of spending time in the yard.

The company was formed in mid-2008, CEO and chairman Chris Grandpre said during a recent interview from Outdoor Living Brands’ headquarters in Richmond, VA. It was birthed to serve as the parent company for the acquisition of several different, but related outdoor-oriented franchise companies.

The companies that form Outdoor Living Brands are: Archadeck Outdoor Living, Outdoor Lighting Perspectives, Mosquito Squad, Renew Crew and, beginning in January 2015, Casuwel.

Archadeck designs and build outdoor living spaces of all sizes and shapes, including: decks, sunrooms, screened porches, outdoor kitchens, outdoor fireplaces, patios and gazebos.

Outdoor Lighting Perspectives designs and installs lighting that complements the landscape architecture and provides safety and security for property. The company also provides holiday and Christmas lighting services.

Mosquito Squad is all about outdoor pest control. Every three weeks, the company treats landscape materials around the base of a house and the perimeter of a yard so

Franchising USA

homeowners can enjoy a pest and disease free outdoor living space.

And the most recent acquisition, Renew Crew, acquired in late 2012, cleans, seals and protects outdoor surfaces of all kinds, including decks, fences, siding of all kinds, windows, driveways, walkways, patios and any other kind of exterior hard surface that accumulates dirt and needs to be cleaned.

Just next month, the company will be launching its newest business, Casuwel, which will offer a premium line of outdoor furnishings and related accessories.

“So, we have a full service outdoor lifestyle business that focuses on designing and building those spaces, lighting those spaces, keeping the bugs away from those spaces and ultimately cleaning and protecting those spaces,” Grandpre summed up. “In addition, with the launch of Casuwel, we’ll be able to assist our clients to design and furnish their outdoor living spaces for enhanced enjoyment of an outdoor living lifestyle.”

Each of the first four brands was already franchising prior to Outdoor Living Brands’ acquisition of them. This fit perfectly with what the company was trying to accomplish, as they wanted to acquire companies that had strong track records for franchising, but also had potential for strong sales growth for existing franchisees and new franchise unit potential. Casuwel is being launched as a brand new business and will go to market through the collective sales efforts of existing Outdoor Living Brands’ franchisees and through catalog and e-commerce strategies.

National Scope Currently, Outdoor Living Brands has about 310-315 franchise locations across all four of the brands. Although the company is national in scope, the geographic footprint of the locations is much heavier east of the Mississippi River.

But, Grandpre pointed out; there are still plenty of territories available across the country.

And, some of the brands, prior to being acquired by Outdoor Living Brands, had international locations, meaning the company also took those over and thus it has a handful of international locations.

Outdoor Lighting Perspectives, for example, has locations in Canada, Kuwait and Saudi Arabia.

Although the company is looking into more international development opportunities in the future for some of its brands, it’s primarily focused on domestic expansion right now.

National expansion should be relatively easy, as Grandpre categorizes Outdoor Living Brands as a group of lifestyle businesses that help clients relax, dine and entertain outside by extending the functional living space of their homes into the outdoors in an aesthetically attractive environment. And there is no shortage of Americans who want to take advantage of services like the ones offered by Outdoor Living Brands.

And the company is in a great position to be the one to supply those services, Grandpre said, as they feel strongly that they deliver a world-class customer service experience based on the quality

of products combined with the level of customer care and service.

A lot of homeowners have been burned by contracting businesses in the past, he said, and they are grateful for the professionalism of the Outdoor Living Brands businesses and are willing to pay for that level of professionalism.

Service Minded People Wanted And that professionalism starts with the franchisees the company recruits.

“Fundamentally, we’re looking for passionate, energetic and driven people,” Grandpre said. “People who, in their DNA, have a desire to deliver really, really strong client service. Someone who is service minded from that regard.”

Preferably, franchisees will have some kind of marketing experience in their background, the CEO noted, because it all starts with attracting potential customers and turning them into actual customers.

Outdoor Living Brands employs a host of tactics to generate leads for new franchisees, including its dedicated franchising website, social media, franchise broker networks, franchise consultants and trade shows – both franchise trade shows and industry trade shows.

“We have a full service outdoor lifestyle business that focuses on designing and building outdoor spaces, lighting those spaces, keeping the bugs away from those spaces and ultimately cleaning and protecting those spaces.”

The company’s franchise discovery and qualification process is an eight-step process to educate potential franchisees about the company’s business model while they also learn about the potential franchisees. It usually takes 30 to 60 days for a potential franchisee to work through the process with a recruiter, and at the end of each step, they make a decision on whether it makes sense to continue together.

If potential franchisees make it through the process, it culminates in a confirmation day in Richmond where the new franchisee meets the people at the company and gets a feel for the organization and the culture.

After that, assuming they are awarded a territory, the new franchisee receives initial training which includes a comprehensive operations manual and

classroom training programs that range from one to three weeks depending on which brand they have licensed.

In the first couple of years, field teams are out working with new franchisees, helping them to ensure they’ve implemented the processes and procedures that make the franchises successful. This is augmented by lots of weekly phone calls, webinars and online resources, Grandpre added.

Grandpre said Outdoor Living Brands is especially proud of the fact that its franchises have achieved the World Class Franchise designation from the Franchise Research Institute and believes this speaks to the dedication of the company’s franchisees to offer the best possible service they can to keep Americans outside and enjoying their yards.

For more information visit: www.outdoorlivingbrands.com

Franchising USA

cov er sto ry by Rob S w ystun

Page 11

ex per t advice

Diane Rosenkrantz, Senior Consultant, Tenet Financial Group

FUNDING

Don’t Fear - There Are Options Maybe the first and biggest step has been taken. “I’m ready to invest in a business”. Now one must consider the realistic options and possible obstacles.

Funding isn’t easy. The days of simply walking into a bank and getting a signature loan are a distant memory.

Years ago, lenders simply looked at criteria such as having good credit, a job, and a home. Under those circumstances, bank approvals were relatively easy. Today however, it is no longer that simple.

There are many challenges today. The typical consumer isn’t aware of the intricacies involved with funding. Since 2008, the lending climate has gone through a multitude of changes. But, with patience and the assistance of consulting experts, funding is available.

Recommendation – do your research and review all the possibilities. New business owners are getting more creative and expanding the different combinations to find solutions.

Depending on the situation, there are two ways to approach funding. One is through DEBT funding and the other is with EQUITY funding.

When exploring debt/loan options, there are many choices:

Franchising USA

• SBA/Conventional loans • Personal/Business lines of credit • Home Equity lines of credit • Borrowing from friends/relatives • Using Stocks as collateral for loans When avoiding debt, and looking for Equity options: • Leverage 401K/IRA funds (for any retirement tax deferred accounts) • Cash To explore the various debt funding options, one can work with a local bank/ credit union or work with a lending broker.

Based on the choice or choices, it can take one to six months to complete funding, with SBA or Conventional loans taking the longest.

Small Business Administration (SBA) loans require a combination of many variables that are thoroughly reviewed by any local bank to help determine if this is a good fit. There are also SBA/ lending brokers that specialize in this option and can help navigate this very detailed process. Among the items that lenders generally look for, they request 20-30 percent cash down from the borrower. Lenders need to see that the borrower has a vested interest in the new business. Commonly, lenders also like to see collateral. Additionally, a detailed business plan is needed, along with good credit, a proven ability to repay, business experience (in the same field you are

investing in), and other variables that the lender will share.

Personal/business lines of credit are attractive for those who don’t have collateral or those not interested in using collateral. Obtaining unsecured lines of credit is often through a process in which one acquires credit cards either using personal credit or through business lines of credit. This process includes a number of different lines of credit since lenders are rarely willing to offer large credit approvals without collateral.

However, a combination of multiple lenders collectively may provide the funding needed. This allows the borrower the option of liquidating various lines, providing cash for the new business.

People know they need to be properly capitalized, or even better to be overcapitalized. From history, we know the number one reason that businesses fail early on, is due to a lack of sufficient funding. With credit scores of 700 or more, good credit payment history, and a reasonable debt load, this may be an option to consider. To successfully navigate this detailed process properly, be sure to work with a company that specializes in unsecured lines of credit.

A home equity line of credit (HELOC) is also a quick option, but keep in mind, you need to be employed, have good credit, and have enough equity in your home to be able to proceed with this option.

Often times, when people

“There are two ways to approach funding. One is through DEBT funding and the other is with EQUITY funding.�

realize that they may not qualify for loans/lines of credit, they may try to look for other investors.

This is typically a difficult task; however some people may ask family or friends for financial help. Should individuals venture down that path, they would want to have a clear and concise plan for the repayment. And, they may want to have a contingency plan available.

For people with stocks/bonds outside of retirement funds, the option of a secured loan may be considered. Usually persons would want to have a portfolio of over $100,000 for this option. These are for funds outside of an IRA or 401K. Diane Rosenkrantz

Franchising USA

ex per t advice

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ex per t advice

Diane Rosenkrantz, Senior Consultant, Tenet Financial Group

“Conventional wisdom says “cash is king”, so keep your cash for a rainy day.”

If the firm that holds those assets allows, individuals may be able to get a loan against a percentage of those assets.

Interest rates can be attractive for loans like this, but rates vary based on market conditions.

To help determine funding options visit this Funding Calculator: http://tenetfinancialgroup.com/step-2.

If getting into business, with debt, isn’t attractive, the other option is to review using equity. One common way to fund a business without debt is to access retirement funds. This option is called a Rollover as a Business Start Up or a Self Directed 401K. This is possible for someone that has retirement funds that have not yet been taxed and that are not tied to a current employer. There are many types of accounts that can qualify.

For example: 401K, IRA, SEP IRA, 403b, 457, Thrift Saving Plans, and Annuities (if from retirement funds), are the most common. To learn more about that option, visit www.tenetfinancialgroup.com and view www.youtube.com/watch?v=1T5pgf68dg.

Another equity funding option is simply using cash. Conventional wisdom says “cash is king”, so keep your cash for a rainy day. Many people who have cash may be reluctant to use it or may wish to use only a portion. Frequently, clients say, “I would rather use someone elses money, and keep my cash.” A number of those clients weren’t initially aware that they can utilize 401K/IRA type funds.

Note: when working with a company that specializes in this option, one is able to access retirement funds both penalty free and tax deferred.

The option of using retirement funds provides the ability to access the funds both penalty free and tax deferred.

That’s right. Regardless of age, regardless

Franchising USA

of the amount of funds needed; a person can access retirement funds (as long as they are not with a current employer).

How does that work?

The rollover funding option, allows an entrepreneur to invest retirement funds into a new corporation. Those funds can be used to buy a new business or to recapitalize an existing business. This gives the investor the opportunity to use the funds for any business expense and to pay salary. The IRS has numerous rules and regulations, and when followed by a company that specializes in this option, you can use any amount of retirement funds, as long as it is a for profit company.

Tenet Financial Group, based outside of the Dallas/Ft Worth area, is rated A+ by the BBB and works with clients all across the United States. Founded in 2008, Tenet Financial Group has helped many people who want to be entrepreneurial and invest in themselves. Our clients can empower themselves and invest their retirement funds into their businesses. They appreciate the opportunity of funding a business debt free and equity rich. This process can be completed typically in just three to four weeks.

Whether an investor uses debt or equity, or a combination of the options noted above, doing research is critical. Take the time to understand options and what may be most beneficial. Regardless of the options, it’s vital that you ensure sufficient capitalization.

Diane Rosenkrantz has been working in the pension industry/consulting/ customer service area for the past 25 years. Currently assisting clients, brokers, and franchisors across the country find the best funding options for new or existing businesses. A specialty of Tenet Financial Group is working with clients that have retirement funds; and Diane helps educate them on the process of accessing those funds for businesses.

Over the years, she has written numerous funding articles and frequently speaks on the Rollover (ROBS) funding option. Her experience at MassMutual Life Insurance in the Pension area provided an excellent foundation for her knowledge of 401K and Profit Sharing Plans.

To learn more about funding your business, you can reach Diane Rosenkrantz at: P: 413-754-3298 E: Diane@tenetfinancialgroup.com W: www.tenetfinancialgroup.com

ex per t advice

Adam Heitzman, Co-Founder and Managing Partner, HigherVisibility

Preparing for a Cyber Attack

So Your Fr anch ise Isn’t A ffect ed t h is Holiday Se ason

Adam Heitzman

Franchising USA

Every company needs to have a plan in place to protect their website from a cyber attack, and this is extremely crucial for franchise companies because you have multiple locations and may have multiple websites.

While cyber attacks happen everyday, (which you can actually see in real-time at http://cybermap.kaspersky.com), the holiday season is one of the busiest time of year for attackers. There is more financial information out there during the holidays—more shopping going on, more companies getting overwhelmed and distracted, etc.—which makes it the perfect time for an attack.

To state the obvious, a cyber attack can clear all of your data and seriously hurt your company, sending you into a legal mess and an even worse cleanup and rebuilding of your business. Fortunately,

“In 2013 more than 500 million records of personal information were stolen.” there are several ways you can make sure your website is prepared and ready to fight off any potential incidents.

How to Make Sure Your Website is Prepared for an Attempted Cyber Attack

Cyber Security Definition and Statistics

And so without further ado, below lists a few ways to keep your website protected 24/7:

Before diving into how to be prepared, it’s important to understand what a cyber attack actually is. Essentially, a cyber attack is when someone/a team of people (or a computer program run by someone) break into your website and steal and delete your company information.

• In 2013 more than 500 million records of personal information were stolen.

• There were 91 million+ security events detected in 2013 with 16,900 attacks.

• $3.5 million was the average total cost to U.S. companies for a data breach last year.

This is of course your first step.

Using software such as Bitdefender or Kaspersky, which work well for franchise websites, will be your biggest defense against attackers. What experts continue to say and we all continue to ignore, however, is that this software needs to stay updated. It’s easy to forget about cyber attacks if you’ve never been attacked, but this software is actually updated all the time as hackers begin to figure them out or new threats are introduced. It’s up to you to take advantage of these new updates by constantly checking your software and taking the time to actually accept the changes.

2. Have a back-up system.

• Malicious code was the primary mode of attack for 38 percent of cases.

• Outsiders instigate more than half of attacks, but there are many cases of “insiders” working to aid attackers.

If you’re interested, check out the three biggest server attacks of 2014 thus far at www.hostt.com/3-biggest-server-hacks2014.

Do note, however, that a cyber attack isn’t something to lose sleep over. Although they happen everyday, the majority of companies are not affected. It’s simply important to go over your plan of action every once and a while in the unlikely event that something could happen. You can never be too safe when you own a franchise.

4. Keep your passwords different and difficult.

1. Use software to protect your website and keep it up to date.

Below are a few statistics about cyber security from the IBM Security Services 2014 Cyber Security Intelligence Index:

• Over 75 percent of incidents targeted five industries: Health and social services, retail and wholesale, finance and insurance, information and communication, and manufacturing.

layers of security in place to help keep your more protected.

You should always back-up your system so that you’re prepared if something ever happens. This will help put your mind at ease and ensure that your information is stored in a separate location. There are quite a few plugins out there to help you backup your information, such as BackUpWordPress. You can also save your information onto an external harddrive with the help of your IT team. A good rule of thumb is to backup your website once per week.

3. Use two-factor authentication for logging in to your accounts.

Instead of just asking for a login and a password (which is one-factor authentication), change your website to require the need for two steps of information, such as a code send to a smartphone. The idea here is having

This is highly recommended for personal use, but it’s an easy tip that can help keep a franchise secure as well. Always make sure all of your passwords are different, and make them incredibly unique and difficult to crack.

This means using upper and lower case letters, special characters, and keep the length long.

5. Switch to a secure HTTPS server.

You can always tell whether or not a website is secure based on the URL. Any HTTPS site means it is using something called a Secure Sockets Layer (SSL). The HTTP therefore means that a website is not secure. An HTTPS site will send information across the web that is encrypted, whereas an HTTP site sends information in plain text, which is easier to read and find for people trying to steal information. You can learn more about how to make the switch and how it will actually boost your SEO on our website.

6. Extra Tip: Make sure cyber security isn’t only in place at your headquarters.

You have to make sure that you have a comprehensive program in place for all of your franchise locations. This is the main reason that attackers sometimes find new franchise companies more vulnerable and an easier target. Talk with your IT team to make sure that your software and back-up plans are working for all of your webpages and all different locations (if they have their own website, social accounts, logins, etc.).

Adam Heitzman is the Co-Founder and Managing Partner at HigherVisiblity, a nationally recognized SEO firm that offers a full range of Internet marketing services.

For more information visit: www.highervisibility.com

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DirectB u y

DirectBuy

Together We Can Do Amazing Things In the July issue of Franchising USA Magazine, DirectBuy’s CEO, Mike Bornhorst said, “the future is bright, thanks to a changing culture 100 percent focused on customers with our best days ahead”.

Founded in 1971, DirectBuy’s goal was to unite the buying power of consumers throughout North America, and provide its members with a way to significantly increase their individual purchasing power.

Since then, the company has provided hundreds of thousands of consumer’s unparalleled ways to save as they shop for virtually everything for in and around their homes – furnishings, home improvement, flooring, entertainment, outdoor products, accessories, and more.

Well established as the premiere franchisebased buying club, DirectBuy has

experienced continuous growth for over four decades. They help families buy the smartest and most efficient way possible, bypassing traditional retail channel markup, by purchasing from a selection of over one million products and services, direct from name brand manufacturers or their authorized suppliers.

Consistently ranked by Entrepreneur magazine among the best in their category, and close behind leading retailers like Home Depot and Lowes in Home Improvement, DirectBuy was ranked fourth in the Top 100 Home Improvement Retailers in the kitchen and bath cabinet area. This unique buying model, available only to its members, creates an outstanding business opportunity for DirectBuy franchisees.

Under new leadership, DirectBuy is transitioning to an even more customercentric business, focusing on providing service, selection and value that enhance members’ lifestyles. The company’s new CEO, Mike Bornhorst, and his management team have developed a strategy focused on improving members’ experiences using his extensive experience in service oriented businesses - having held executive level positions with ADT Security and Culligan Water - both recognized for their industry leading customer service.

DirectBuy Columbia MD Owners- Winners of the Club of the Year 2014

Franchising USA

Delivering on the company’s strong value proposition is a dedicated network of

DirectBuy Columbia MD - Winners of the Club of the Year 2014

franchisees that help members achieve significant savings across a wide variety of products and merchandise. “At our core, we are a franchise organization made up of passionate owners and operators dedicated to inspiring our members,” said Bornhorst.

Franchisees can expect ongoing support with DirectBuy’s quality training programs and continuous marketing and sales support. The company’s new tagline – “Together, we can do amazing things.” – focuses on the partnership that DirectBuy strives for with its franchisees and members.

Franchisees, like the owners of the Long Island NY club, retiring after 24 years with the DirectBuy family and currently selling their club, leave a bittersweet feeling in the entire franchise network and corporate office. As well respected, successful club owners since opening their doors, together with their loyal staff, they have accomplished every goal they set out

“The company’s new tagline – “Together, we can do amazing things.” – focuses on the partnership that DirectBuy strives for with its franchisees and members.”

to achieve, also earning countless awards and recognition, including the coveted “Club of the Year” awards for both sales and service numerous times. In addition, they have helped fellow club owners with their tireless efforts as members of the network’s various Task Forces, and much more.

In announcing their retirement, Long Island club Owners shared this message with their colleagues: “It’s been an honor and a privilege to have been part of this wonderful company for over 24 years. We fell in love with the brilliant and simple concept of buying direct when we first became members in 1989. We have since enjoyed watching the company grow, add new vendors,

and become the shopping powerhouse it is today. We have loved sharing the DirectBuy story with thousands of people in our community. Seeing our members use the club and transform their lives is a constant source of joy.

“We treasure the lasting friendships we have forged with the people of DirectBuy across the U.S. and Canada. We want to thank our fantastic staff who have stayed loyal to our club and our members for so many years. You are the best of the best.

We are so grateful to have been a part of this great company; it has truly changed our lives. We wish you all much success in the years ahead. Together you can do amazing things!”

Like the Long Island franchisees, many

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DirectB u y

DirectBuy Long Island - Retiring after 24 years as successful Club Owners

club owners have been part of DirectBuy for much of the company’s history, and possess a level of passion that comes only with a strong belief in the company and a genuine desire to help others. For many, it’s a family business.

That passion is built through ongoing training and recognition given to franchisees and their staff at the company’s annual conferences held at exciting North American locations. These events, consisting of awards, education, celebration, and team building sessions are always informative, energizing, and motivating. In fact, for the 800 attendees at DirectBuy’s 2014 Conference in Orlando, FL, it was truly inspiring to witness the owners and staff of DirectBuy of Columbia, MD, take home DirectBuy’s most prestigious honor, the “Club of the Year” award.

Ranked as the Number-One Sales Club of the Year, an award based on membership

Franchising USA

“Well established as the premiere franchisebased buying club, DirectBuy has experienced continuous growth for over four decades.” sales production, the Columbia MD club also earned the company’s Number-Four Service Club of the Year position, based on a Service Index Rating and individual staff accomplishments.

The franchisees and staff of DirectBuy’s Columbia MD have been striving for Club of the Year honors for over a decade, setting their sights high for personal achievements and team accolades at past Conferences over the years. Previously, in 2013, they took home honors as the Number-One Service Club of the Year.

To be “Club of the Year”, franchisees must demonstrate excellence in customer service, business operations, and membership sales. For over 10 years, the Columbia location consistently displayed unbridled enthusiasm and dedication

to helping families through DirectBuy. Their keys to success include Integrity, Building Strong Relationships, Teamwork, Preparation, and Leadership.

If you seek a rewarding career in a unique industry where you can truly impact the lives of those in your community, now could be the right time to look into becoming a DirectBuy franchisee. With desirable, established market opportunities available throughout North America, you can join a network of dedicated club owners that are focused on enhancing the lifestyles of their members.

To obtain more information about DirectBuy franchising opportunities, please visit our franchise website – http://franchise.directbuy.com

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OPPORTUNITY IS KNOCKING! GET YOUR FOOT IN THE DOOR BEFORE IT CLOSES!

Join the fastest growing pizza chain in America!* Our footprint fits your space.

Non-traditional concepts available.

Visit LittleCaesars.com or call 800-553-5776 *Based on 2013 store growth. Š2014 LCE, Inc. 45494

Franchising USA

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Kyle Zagrodzky, President, OsteoStrong

5 Ways to Make Franchisees Feel Like Part of the Team Owning a franchise has plenty of advantages.

Both owners and franchisees are in business for themselves, but they’re not alone.

Franchising blends the best of independence and supportive partnerships to foster incredible gains for everyone involved.

However, the same independence that makes the franchise system an incredible business model can become a weakness if people start to feel disconnected, which can happen all too easily when the number of franchisees grows and locations begin to spread across distant regions.

Franchises are about building a brand that’s seamless and whole, but this isn’t possible if franchisees aren’t plugged in.

When balancing expansion with making sure every player knows their part of the team, these five strategies will help your organization stay unified instead of splintered.

Start with the right franchisees The most difficult part of running a franchise usually isn’t sales, but quality control—of people. Choosing the best candidates to launch locations is not

Franchising USA

only essential to your business’ long term success, but to your personal and professional sanity. Invest not only in franchisees you know and like, but those who are qualified to run the business. To make every franchisee feel like part of the team, they should have earned a place as a player. If a franchisee is ready to write a check (or is your brother-in-law) but doesn’t know the basics and can’t keep up, it will be that much harder for them to stay relevant in the lineup.

Lots of time and financial investment goes into recruiting the ideal franchisee, but the overall cost of lower franchise revenues, smaller royalties and even a failed franchise that could lead to litigation is far higher. Though turning down a check may be painful, working with someone who can’t keep up or isn’t playing to win will be far worse.

Keep in touch Don’t rely on conference calls, annual meetings and one-off retreats to keep people in the loop. Have executives from your team reach out to each franchisee once a week to touch base on specific issues or just ask how everything is going.

Even if they only leave a message, it will show the franchisee they’re part of the club. Electronic communication through email and texts is all well and good, but nothing can replace personal contact.

Reaching out personally not only makes people realize they matter, it also provides more opportunities for franchisees to explore issues, discuss what’s working well and what isn’t, and voice ideas or concerns they may be too timid to share in a group.

Foster helpful connections If people didn’t want to be part of the gang, they wouldn’t have signed up to run a franchise in the first place. You already have a network of business owners who want to be part of something, so the rest is about setting up the right circumstances so they can connect. A weekly conference call, retreats and quarterly or annual meetings that include team-building activities each help franchisees get to know each other. When business

“To make every franchisee feel like part of the team, they should have earned a place as a player.” friendships are fostered, every franchisee is more engaged.

Bridging gaps between franchisees also benefits the business as a whole. A bad reputation with one unit damages the brand, but when franchisees share relationships, they can help one another and pass along information, past experiences and suggestions.

Empower regional developers You want your franchise to grow, which means at some point you can’t be everything to everyone. That’s why it’s critical to trust regional developers who will not only recruit and grow the business, but emphasize creating communities among franchisees.

Regional developers should be another faction in the corporate team that checks on franchisees about once a week.

Invest in great staff at every level From the CEO to the janitorial staff, every single person who has a hand in your business matters. If you have a fantastic executive team but an administrative assistant with a bad attitude, morale will sink faster than a ship full of pinholes.

Focus on finding the best fits for top tier staff, but also make sure everyone at the company wants to contribute to a culture of positive productivity. Franchisees will likely interact with everyone in your company on some level, so every person who works for the business should represent the brand, company culture and corporate values.

Take the time to hire the right people at every level; if your corporate band isn’t playing well together or there is a high turnover, that energy will be obvious from any distance. You can’t expect franchisees to feel like part of something great if your corporate office is out of whack.

Kyle Zagrodzky

People start businesses to make money, but the most noteworthy companies are those that create something more impactful.

Whether you want to call it a team, a great culture or a family, the companies who win big are those that bring people together for a shared cause and purpose. If you’re only in it to make money, you risk forgetting about the people, and people are the true drivers of success.

Kyle Zagrodzky is president of OsteoStrong, the health and wellness system that boosts bone and muscle strength in less than 10 minutes a week using scientifically proven osteogenic loading concepts. OsteoStrong introduced a new era in modern fitness and aging prevention two years ago and has since helped more than 1,000’s of participants between ages eight and 92 improve strength, balance, endurance and bone density. This year, the brand signed commitments with nine regional developers to launch 500 new locations across America.

For more information visit: www.osteostrong.com

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Terry Powell, Founder, The Entrepreneur’s Source

Is Your Corporate Structure

Stifling Your Franchise?

By their very nature, franchise brands are predominately founded by entrepreneurs who have taken their specific knowledge and skill sets to create a replicable, systematized and scalable business model.

As the franchise grows larger though, it reaches the ceiling of complexity where it seems necessary to bring in different levels of employees to continue growth.

This is when the business often loses its entrepreneurial feel and evolves into a bureaucratic hierarchy, incorporating rigid job titles and a clear executive structure.

Although it’s a common practice, just because the company is growing and becoming more successful, it’s not necessarily in the best interest of a franchise organization to adopt a hierarchical structure. Isn’t this inflexible business organization counterintuitive to the mindset of the entrepreneur that

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Terry Powell, Founder, The Entrepreneur’s Source

“Instead of turning to tradition, companies should create a high performance entrepreneurial culture.” made the business successful? How does the entrepreneur then continue to guide his business using the skills that brought him to success? Going further - how is a mutually beneficial and interdependent relationship created when there’s a clear pecking order?

Too frequently, success brings on a whole host of stifling issues that threaten both your ability to maintain your best talent and continue on a path of positive growth.

So, what do you do about it?

Instead of turning to tradition, companies should create a high performance entrepreneurial culture.

Build a Unique Abilities Team Asking anybody to fit into a specific job description rather than utilizing his pre-existing talents stifles productivity and makes his focus on strengthening his weaknesses rather than fully capitalizing on his strengths. It’s rare to find an entrepreneur with the exact skills that are required for the role of CEO – this does not mean that, as the founder, you are not the leader or visionary in the company. It means that the day-to-day operations for the organizational aspects of the company must be shared based on who has the skills to best perform each task.

Analyze what skills your team already possesses and hire to fill voids. In doing this, you will create empowered teams that are aligned with the vision of the organization. Traditional job descriptions are limiting and pigeonhole team performance. Highly segmented teams block employees’ ability to view how their role contributes to the overall objectives of the company. Removing these walls will give each person a better view of the company goals and what needs to be done to achieve them.

Franchising USA

Encourage an Ownership Attitude C-Level titles create a mindset of entitlement rather than empowerment.

If team members are empowered to feel ownership of the company, they will be guided to judge their work by how it contributes to the company, not how it improves their status or title. Motivation will be driven not by job description or the eight-hour work day, but because they have the power to drive results and make real improvements.

Maintain Win-Win Relationships People are frequently leaving corporate

America to avoid the corporate structure they end up encountering when they buy a franchise. They are looking for the

freedom that entrepreneurship offers, and are often disheartened to find that many franchises converge to the hierarchal structure they were trying to escape.

This is why recruiting for franchising is only successful for one to two percent

of the people who show up looking for opportunities.

Going back to the true entrepreneurial feel creates a win-win relationship

between franchisors and franchisees. The franchisor gains from new locations and

visibility of its brand while the franchisee gets the win/win environment he or she

sought after leaving corporate America.

In the same way, employer and employee

relationships must be mutually beneficial.

If there is a distinct line between manager and staff, it becomes impossible to

maintain an ownership attitude and focus then moves back to status – what is my

title, who do I report to, who reports to me.

Terry Powell

Reclaim the Entrepreneurial Culture Taking back the entrepreneurial spirit of the company by ousting traditional corporate structure will encourage team members to be focused on how their actions bring value to the company rather than how their actions increase their status.

Encouraging team members to have an ownership attitude and creating an environment where their unique skill sets are being utilized can bring the company back to its original entrepreneurial feel and overcome the roadblocks that traditional structure creates.

Constructing the business that you desire and not just what is traditional will ensure your structure identifies with the brand’s core values.

Terry Powell is the founder of The Entrepreneur’s Source, North America’s leading alternative career coaching franchise dedicated to the entrepreneur, with more than 200 offices in the United States and Canada. The company offers a full range of services to individuals seeking alternate career options and to franchise businesses looking to increase performance.

For more information about The Entrepreneur’s Source, contact Terry at TPowell@FranchiseSource.com or visit: www.EntrepreneursSource.com

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ex per t advice

Dale Willerton and Jeff Grandfield, The Lease Coach

Six Questions

You Must Ask Your Franchisor Before Leasing Commercial Space “There is no extra protection or benefit for a franchisee to sublease from a franchisor.�

Whenever we speak at major franchise shows there are always plenty of attendees at our leasing seminars and workshops.

The majority of these are future franchisees who are virgin tenants.

Not only are they faced with selecting a great franchise system, they are entering into unfamiliar waters with regard to leasing space. Many of these entrepreneurs have never negotiated a lease and do not know what questions to ask their franchisor about the commercial leasing process. We are very much pro-franchising but trust me; ignorance is not bliss when it comes to leasing commercial space.

To that end, these are some of the many questions that franchisees need to ask their franchisor in advance of even beginning to look for suitable space to lease:

1. Will the franchisor sign the Head Lease and sublet the space to the franchisee – or will it be the franchisee alone who signs the lease?

Whichever party signs the Head Lease will assume the responsibility for the lease.

Most franchisors want to avoid liability if

Franchising USA

the franchisee fails; therefore, more often than not, the franchisee solely signs the Head Lease. Ideally, the franchisee would want to sign the Head Lease to retain as much control as possible. As a subtenant to the franchisor, the franchisee would be 100 percent responsible, along with the franchisor, so why not sign the Head Lease yourself? There is no extra protection or benefit for a franchisee to sublease from a franchisor.

2. What role(s) will the franchisor and franchisee play in the site selection and leasing process?

One of the reasons so many franchisees get upset with their franchisor is the lack of defined roles each party will play in the process. Some franchisors truly provide next to no real estate/leasing help at all. Weeks turn into months and no deal has been done because no timeline checklist or targets were created. While other franchisors say they will handle most of the leasing process, many do not deliver. Alternatively, other franchisors may shovel the process off to a real estate agent who may care more about his/her commission than your long-term viability or profitability.

3. Will a real estate agent or broker be involved in the leasing process?

There are most commonly two types of agents - the listing or inside agent and the outside agent. You will recognize the listing agent as having his/her “For Lease” sign on the building. This agent’s job is to get the landlord the best deal possible (the highest rent, most deposit etc.). The outside agent may or may not be working in the tenant’s best interest. Some franchisors may match their franchisees up with local brokers who find a location and do the deal but ultimately get handsomely rewarded with a commission check from the landlord.

4. Will the franchisee have final control or say over the location and lease terms?

Most franchisors will defer to a franchisee’s wishes when it comes to choosing between two or three sites for lease. But did you ever stop to confirm that you, the franchisee, have that right?

The argument may not be even picking the best site – it might be you trying to avoid a location you hate because the franchisor insists that you lease there. The franchisee is the one taking the risk, signing the lease and paying the rent – make sure you have the power of veto when it comes to site selection.

5. What if we can’t find a good location or reasonable lease deal?

After speaking at a franchise show a young couple approached us to help them.

They had just signed up for a franchise and knew several plazas in their community that would be perfect for their concept.

Unfortunately, upon investigation all of these plazas were achieving rental rates 25-30 percent above the franchisor’s maximum recommended rental budget. In another situation, a sub shop franchisee quit her job and waited one year while the franchisor failed to produce a suitable location. Both these potential franchisees finally gave up and forfeited their franchise fees because the right space at the right price was not available. Don’t assume that just because you buy into a franchise system there will be a location or landlord waiting to take you in.

Dale Willerton

6. How will my site(s) ultimately be approved or denied?

Most franchisors will provide a checklist in advance to be completed on various sites to determine their potential. Desired criteria would include traffic count, demographics, etc. However, not all franchisors will send someone from their head office to negotiate or personally visit your city or site. One franchisor with several hundred locations told us the franchisor did not have the manpower or the money to fly there in person – and that the franchisee was pretty much left on his/ her own. Many franchisees complain that the franchisor’s site visit was only in the late stages of the leasing process instead of in advance to help them scout the territory.

For a copy of our free CD, Leasing Do’s & Don’ts for Franchisee Tenants, please email us today.

Dale Willerton and Jeff Grandfield The Lease Coach, are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals For Dummies (Wiley, 2013).

Got a leasing question? Need help with your new lease or renewal?

Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or visit www.TheLeaseCoach.com

Jeff Grandfield

Franchising USA

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Retail Franchising

Although clothing readily springs to mind when talking about retail franchising, the fact is that it stretches across a large number of different industries and has a significant impact on people’s daily lives.

In fact, it cuts such a vast swath, the United States Bureau of Labor Statistics (BLS) classifies retail as a “supersector” that comprises both store and nonstore retailers within the broader trade, transportation, and utilities category.

The North American Industry Classification System (NAICS) specifies 75 retail store types, examples of which include: • furniture stores • electronics • health and personal care stores • clothing and general merchandise stores • florists and gift stores • photographic services • new car dealers • used car dealers • computer and software stores • home centers...and many many more

Store Retailers Store retailers, as the label implies, have a storefront at a fixed location that is aimed at attracting walk-in customers. They have large displays of merchandise and most of them use mass media advertising like radio and TV. While they usually sell merchandise to the general public for personal use, some also sell to business and/or institutional clients.

They commonly supply after sales service like repair and installation.

Non-Store Retailers Like store retailers, non-store retailers sell merchandise to the general public,

“Having the best products in the world won’t help if you’re in an area where there is no demand for them.”

Franchising USA

but rather than doing so from a fixed location that people can go to, they employ different tactics, like “infomercials,” direct-response advertising, catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls like mall kiosks or street vendors, and vending machines.

Economics and Demographics Like many other businesses, retail franchises are affected by the relative strength of the economy. When the economy is strong, people have more disposable income to spend on merchandise. But, conversely, when the economy hits a bumpy patch, that disposable income dries up.

Demographics also play a significant role in the success of a retail franchise.

Opening in the wrong neighborhood can spell disaster for a retail outlet. Changing demographics of the country will also have an effect on the retail industry, as minorities — any race other than nonHispanic, single-race whites — within the United States are set to become the majority, according to Census data.

This is due to happen within the next generation. These changing demographics mean retailers will have to adapt their promotional efforts to attract customers from this rapidly changing customer base.

Franchising Advantages Having to adapt to changing demographics and ride out the tough financial times makes franchising attractive for a lot of entrepreneurs. A franchise provides the backing of established brand recognition and economies of scale.

They also tend to provide marketing and sometimes administrative support and will do marketing for the overall brand to supplement their franchisees’ marketing of their individual locations.

Providing they utilize the franchising

system in place, franchisees tend to have a better chance at being successful than independent startup businesses.

Location Obviously, having products that people want and having the basics like great customer service are important, but for retail outlets that have a physical storefront, location is probably the most important factor in its potential success.

Having the best products in the world won’t help if you’re in an area where there is no demand for them.

The location should be in an area that is highly visible and that has a significant amount of traffic so as to attract potential walk-in customers. A visible and easily accessible location will prompt people to come in and look around and try the products. Convenience can be right up there with price as a motivating factor for a person to make a decision about patronizing a place.

Helping you find the right location is among the many advantages of opening a franchise business. The franchisor knows better than anyone what type of neighborhood its business will thrive in and many franchisors will have access to demographic data about areas they are actively trying to expand into. Most franchisors will retain the right to approve the selected site and may help with things like financing and renovations.

When looking for a site, consider the following:

• Does the area fit the brand? The neighborhood should match the franchise’s brand image. A businessto-business franchise that sells metal for industrial and commercial purposes is going to look more natural in an industrial area even though the area may not be aesthetically pleasing, per se.

• Are there similar businesses nearby?

For many types of businesses, such as restaurants, having a similar business next door would be terrible. However, for other types of businesses, it can be advantageous to have similar businesses nearby because it draws more potential customers to the area. Most cities tend to have unofficially designated areas for things like car dealerships or farm equipment dealerships. If you’re opening a farm equipment dealership, you’ll want to be in the area associated

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with them because that’s the most likely place people looking to buy that will head to.

• How much work will the building or site require? If you’re building from scratch, you’ll be able to build to whatever specifications you require. But, often you’ll be taking over an old building and that will require renovations. You may even need to tear the existing building down and start building from scratch.

You’ll need to figure those into the total cost, along with costs like tax rates, rent or mortgage and utility costs. Even if you’re buying an empty lot, there still may be environmental cleanup to be done before you can start building. All this needs to be factored into the total cost.

• Is there enough traffic in the area and how accessible is the spot? It’s not just the amount of traffic that passes by that counts. You may find what appears to be the perfect spot on a major road, meaning thousands of people will be driving by every day. But if there is no easy way to pull off that road and get to the business, the spot may not be suitable after all. You’ll need to also consider parking, how easy it is for pedestrians to get to the business and traffic patterns in the area.

• Can the spot even be used for what you want to use it for? You’ll need to check what uses the property is zoned for (i.e. residential, commercial, industrial). If it’s not zoned correctly for what you want to use it for, you’ll need to submit a request to the municipal government to have the zoning amended.

Looking for a site is usually a team endeavor between franchisee and franchisor. As mentioned previously, franchisors often have or can arrange to procure demographics of the area, but the franchisee, being a local, will have a better understanding of the feel of the

Franchising USA

area. The ultimate decision will likely be a combination of gut feeling and hard numbers.

Appealing to the Online Customers We all know that online purchasing continues to increase and continues to pull people away from physical shopping centers with the promise of lower prices.

As an extension of that, mobile shopping (people shopping via their smartphone) is also on the rise. Direct mobile commerce sales were estimated at $3 billion in 2010 and by 2016 that number is estimated to grow to $31 billion.

It’s likely that most franchises have online shopping set up already or will help you set up online shopping for your business.

But, you’ll still want to draw people into your location and you can do that by giving shoppers the one thing they can’t get online: the shopping experience. It’s one thing to sit in front of a computer screen and simply look for an item at the lowest price, but it’s a completely different thing to be able to talk with a knowledgeable sales person and be able to touch the merchandise and interact with it.

While franchisors will be doing their part with large scale, ongoing marketing campaigns, franchisees can do their part to draw customers in with knowledgeable, friendly salespeople who are customer service oriented; making things like exchanges, repairs and returns as easy as possible; creating an inviting environment with the design of the store and adding some entertainment elements; using instore promotions and loyalty programs to cultivate good relationships with customers; and using social media to maintain contact with customers and potential customers.

People do like buying locally and will use platforms like Facebook and Twitter to check out a local business. The more

you can engage people locally, the better it will be for you. Let people know that even though the brand they see may be national in scope, the franchisee is a local business person. As with marketing, the franchisor will likely have a social media presence itself, but will usually encourage franchisees to cultivate their own social media presence for the purposes of localizing their efforts.

With such a variety of industries to choose from, retail franchising has opportunities for every entrepreneur who is looking to start a business. With backing from an established brand and a lot of hard work, retail franchising can be a lucrative endeavor for those who are willing to put in the effort.

About the author: A former journalist, Rob Swystun, has been writing professionally since 2006 and now concentrates on freelance writing.

He lives in Winnipeg and is currently an Athabasca University student studying for a BA in Communications.

Look out for our next special feature:

Home Services Franchising

Franchising USA

ex per t advice

Karim Webb, PCF Restaurant Management Partner and Buffalo Wild Wings Grill & Bar Franchisee

6 Steps to Franchise Success in an Urban Area

For years businesses have been reluctant to move into inner city areas like South Central Los Angeles.

Concerns like: can we make a profit, will we need to deal with vandalism, gangs, and stealing, etc. have plagued these areas, with businesses ultimately opting to not try it. But those days are over.

1. Go straight to the politicians

Local politicians in underserved communities control a greater portion of available resources than other areas.

This is due to a lack of job-providing, profit generating enterprises that would garner community support.

Therefore, politicians are seen as the key to upward mobility and success.

Buffalo Wild Wings Franchisee, Karim Webb gives tips for not only opening a franchise

So if you’re considering operating a Franchise in an “urban area,� first

in an urban area, but how to make it thrive.

Franchising USA

“Once you’ve established relationships, keep them. Be visible.”

By engaging you will learn about new commercial development plans (if any), tax credits if applicable, benefits to be gained by doing business in an “enterprise or underserved zone,” workforce development assistance and other potential cost saving opportunities. And with their backing you are already a step ahead.

2. Engage community leaders

There are usually a few stand-out non-profit organizations headed by recognizable and influential leaders in underserved communities.

Learn their causes, and begin the process of establishing a long-lasting relationship based on mutual support - you for their cause: them for your business. You’ll learn the decision making and mood of the community is shaped by these community leaders and elected officials.

3. Hire locally

Remember that hiring locally does not equate to having lower standards. It means being committed to interview as many applicants as it takes, from as many local resources as you can find to fill as many roles on your team as possible.

You may not be able to hire your entire team from local resources, but be mindful your credibility with elected officials and community leaders is at stake. They are interested in jobs for their constituents.

meet with local political leaders.

You’ll find most of them to be

welcoming to the idea of a new

business coming into their district.

Even more so to you, because you went out of your way to seek him or her out.

You would be surprised how many small business people do not take

advantage of the leverage to be gained by engaging local governmental representatives.

4. Be visible

Once you’ve established relationships, keep them. Be visible. Although operating your business effectively must be priority number one, make time to stay engaged. Attend campaign events for supportive legislators. Show up at press conferences coordinated by local

Karim Webb

organizations. Find a local cause you can support and be active doing so.

You’ll find support for your business almost every time you meet someone new. This is grass roots marketing while at the same time making a difference, showing up and being engaged. A win – win.

5. Coach them up

In your business, prepare to motivate your team to execute at a high level.

Be clear and consistent about your standards. Tell your team members about the transferrable skills they are learning.

You are leading a team of which many are products of underperforming schools, less than desirable parenting and substandard living conditions.

You’ve got to develop your skills as a leader. Your team, just like the community you’re doing business in, needs inspiration.

6. Tell your story

If you’ve done 1-5 effectively, your business is probably successful. So tell your story.

It’s a story that will encourage others to do what you’re doing. Bringing more commerce to the area. Helping the tide to rise, lifting all boats.

Karim Webb is a partner in PCF Restaurant Management and a Buffalo Wild Wings Grill & Bar Franchisee.

For more information visit: www.buffalowildwings.com

Franchising USA

ex per t advice

Page 35

Focus by Rob S w ystun

M etal Super ma r kets

Metal Supermarkets

Finds Niche by Saying ‘Yes’!

In business, it’s often what people aren’t doing that provides the best opportunities.

That was the case with Metal Supermarkets, which was established in 1985 in Mississauga, Ontario by industry veteran Bill Mair. He spent decades

selling metal in mid to large quantities to major players while continually saying “no” to small and mid-size businesses that required smaller quantities of metal.

After leaving one of the large quantity distributors, Bill started saying “yes” to these small-quantity metal customers when he founded Metal Supermarkets and the business has been thriving ever since.

Now a private company including ownership by President and CEO Stephen Schober and Vice President Franchising Andrew Arminen, Metal Supermarkets continues to grow across the continent and across the pond in the United Kingdom.

Metal Supermarkets’ customers include machine shops, smaller-scale manufacturers, governments, maintenance providers, contractors and small to midsize fabricators. The business started franchising back in 1987 and has grown to 72 locations. The company is currently opening a new franchised store every six weeks, Arminen said during a recent interview from the Metal Supermarkets headquarters in Mississauga, Ontario.

Franchising USA

“There is a huge need for our service because of the way the steel industry is structured. Most vendors concentrate on high volume sales, so they don’t look after the small quantity users, often requiring them to buy more than they need and providing disinterested service. They don’t solve these customers’ problems,” Arminen explained. “So, they’re often left out in the cold.”

These smaller quantity purchasers can depend on Metal Supermarkets to sell them any quantity of metal they need and to do it quickly and efficiently, the coowner added.

Arminen has been involved with Metal Supermarkets since 2001. He saw a great opportunity to run a unique business that served a niche, had limited competition, and had huge potential. He and Schober acquired the business as part of a management lead investment group in 2010 and have been running it ever since.

Franchisees The franchise typically attracts persons who want to invest in a solid, non-fad business that promises stability. Generally, Metal Supermarkets franchisees want a Monday to Friday business rather than one that is open for extended hours such as in food services. And, typically, Arminen added, franchisees are interested in business-to-business transactions because it fits with their prior employment background.

The company employs a rigorous franchise development process that includes a series of phone calls, webinars, interviews and meetings with Metal Supermarkets employees and current franchisees to help the company find the best possible candidates. If potential franchisees make a good impression and both parties believe it could be a sound partnership, the prospective franchisee attends a two day discovery process. The desired outcome is to mutually determine if Metal Supermarkets is the right business opportunity.

“Our franchise development approach is not to sell a franchise,” Arminen noted.

“It’s actually to see if the candidate is the right fit for Metal Supermarkets. If the fit is right, the business essentially sells itself and it turns into a win-win.”

Once a franchisee is on board, Metal Supermarkets supports them through an extensive 12-week pre-opening program.

Prior to opening, the new franchisee will attend a two week training session at the company’s headquarters. They will experience what it is like to work in a store, as they spend an entire week working in a fully functional store. The second week is dedicated to in-class training covering topics such as business development, operations, staffing and training on the company’s proprietary software system.

or business-to-business franchises”, Arminen said. The experience of the team along with Metal Supermarkets’ focus on developing “Profitable Partnerships” with its franchisees goes a long way towards establishing their credibility as a franchisor who knows how to run the business and make the franchisee successful.

Metal Supermarkets views the ‘profitable partnership’ philosophy with its franchisees as an integral part of its franchise offering and the ongoing success of both franchisee and franchisor. The company works very closely with all its franchisee partners in measuring key performance areas such as customer service, store financial review, and business model execution. “We are very aligned to the success of our franchisees” Arminen adds. “Profitable and satisfied franchisees make the franchisor successful. We live and breathe this

philosophy day in and day out.” Thus far, those partnerships include 44 locations in the U.S., 22 in Canada and six in the UK. There are still lots of territories available, as the company has its sights set on eventually having 150 - 200 locations in the U.S. alone.

Arminen said there are territories available in almost every state including California, Texas, Kansas, New Jersey, New York and Florida.

He pointed to his and Schober’s investment in the company as solid proof that they are dedicated to seeing franchisees succeed.

“We have a demonstrated long-term commitment to the success of the Metal Supermarkets business,” he said. “We’re passionate about growing and developing a good organization to build for the future, for our franchisees and ourselves.”

For more information visit: http://franchise.metalsupermarkets.com

Additionally, Metal Supermarkets sends its business consultants to the new franchisees’ location for two weeks so they are present for the opening and immediately after. To make sure they’re off to a good start new franchisees have weekly phone calls with the company’s operations group to review the business and formulate strategies for the upcoming week.

The operations team pays the franchisee regular site visits and are focused on training not just the franchisee, but also working with the franchisees’ staff to make sure they understand the business model and systems so that they can maximize the market potential.

“Our dedication to monitoring performance, mentoring for success, and ongoing training helps set Metal Supermarkets apart from other industrial

Franchising USA

focus by Rob S w ystun

Page 37

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december 2014

Veterans in Franchising www.franchisingusamagazine.com

retired Marine finds perfect fit in

Archadeck

‘Tis the Season christmas decor brightens homes

Advantage:

Service Disabled Veteran Franchisees!

Franchising USA

feature

Page 39

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

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“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!

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V eterans in F ranchisin g S upplement december 2 0 1 4 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com

Contents Cover Story

Focus

42 Retired Marine Finds Perfect Fit

in Archadeck

44 Christmas Decor

Profiles 46 Preferred HealthStaff 48 Wallace Property Management Group

News & Expert Advice 50 Advantage: Service Disabled Veteran

Franchisees!

Jim Mingey, Veterans Business Services 52 VetFran News

Veterans and Jobs Highlighted at Southeast

Franchise Forum

Franchising USA

V e t er ans in Fr anch ising

C over S tor y - A rch a deck Ou t doo r L i v ing

retired Marine Finds Perfect Fit in

Archadeck For retired Marine, Kyle Faulkner, owning an Archadeck Outdoor Living franchise fit perfectly with his background, seeing that he’s a third generation carpenter.

Both his grandfather and father owned construction companies that specialized in building residential homes, so once Faulkner was done with the military, Archadeck just seemed like the natural next step.

“I started out doing construction from the time I was old enough to swing a hammer,” Faulkner said during a recent interview from his headquarters in Raleigh, NC, where he is the CEO and owner of the Raleigh-Durham territory of Archadeck.

While his father and grandfather specialized in houses, Faulkner, as part of

Archadeck, has a more niche specialty.

The company designs and builds outdoor living areas like decks, screened porches, patios and sunrooms. It’s part of the Outdoor Living Brands family of franchises, along with Renew Crew, Mosquito Squad and Outdoor Lighting Perspectives.

Faulkner has been with Archadeck since October of 2013 when he purchased a small portion of the Raleigh territory.

In early 2014, he took over the entire Raleigh-Durham area and has now been in operation for a year.

The franchise was recommended to him by a family friend who happened to be a business broker and knew about Archadeck.

“He knew it kind of fit my background, which is in construction,” Faulkner said.

Once he found out about the franchise, it was just a matter of meeting with Rob Haislip, the Vice-President of franchise operations with Archadeck Outdoor Living, and a lucrative partnership was forged.

Looking for Stability Prior to joining Archadeck, Faulkner spent eight years in the Marines in the engineering field hopping back and forth between the U.S. and the Middle East.

All that instability made him yearn for a place where he could settle down into a more stable position - where he could establish some roots rather than being deployed for a year at a time and being stationed somewhere new every couple of years, which meant picking up stakes and moving.

Third generation carpenter, Kyle Faulkner working with his father and grandfather

Franchising USA

“It’s difficult to have a family and to have that grounded base that I wanted to have,”

he said. “I saw lots of my friends raise their kids from thousands of miles away and get to see them only on holidays and I knew that that’s not what I wanted.”

So, after eight years in the Marines, he completed some schooling and ended up moving back to North Carolina from San Diego to take over the Raleigh-Durham territory.

After he made the decision to leave the Marines, Faulkner said, he wanted something to call his own and running his own business seemed like the best way to accomplish that goal. And joining a franchise means they can provide assistance with getting the business up and running, he explained, while still allowing the franchisee room to grow and make changes that they think are necessary.

Getting Started Getting started with Archadeck meant four weeks of training in Richmond, VA, going there for two weeks, getting a oneweek break and then going back for two more weeks. During that time, they went through everything they could, Faulkner recalled, but it’s hard to fit everything you need to know about the business into four weeks.

There are so many products available and so many things to learn about building codes and standards. For example, Faulkner’s territory encompasses 27 different jurisdictions that all have their own building codes and standards, all of which he has to know and follow while designing and building outdoor living spaces.

Fortunately, Archadeck also provides ongoing support and training like making sure that if any assistance is needed with material or vendors or the aforementioned

“After he made the decision to leave the Marines, Faulkner said, he wanted something to call his own and running his own business seemed like the best way to accomplish that goal.” building codes, franchisees get the assistance they need.

Different people in the Richmond headquarters have different areas of expertise like drafting, building codes, and inbound and outbound marketing. These specialists are there to help franchisees should they have any questions or need a hand.

Archadeck franchisees also meet regularly for their annual meeting and regional meetings and are more than happy to share business practices and tips with each other.

Working Balance into Life Although his work/life balance is far different than before, it still affords him the time to see his family. During his active duty time with the Marines, when he was in the States, Faulkner said, he would work six to eight hours per day, but he was off on the weekends and holidays and tended to take a lot of early days on Fridays. But, on the other hand, when deployed, the work was almost non-stop, seven days per week.

Nowadays, he works on average about 10-14 hours per day, but does make a point to take Saturday or Sunday off to spend with his family. He still answers the phone, though. It always seems like he’s working, the Archadeck owner said, but he can now work from home or plan the work around appointments and other things because it also affords him the flexibility to set his own schedule.

As long as people are prepared for the amount of work it takes to make a successful franchise, he said, it’s well worth getting into, especially if you seem to be born for this kind of thing - like being a third-generation carpenter.

For more information visit: www.archadeckfranchise.com

Franchising USA

V e t er ans in Fr anch ising

Page 43

V e t er ans in Fr anch ising

Chr istmas Decor

‘Tis the Season

Christmas Decor Brightens Military Families’ Homes with Nationwide Decorated Family Program For the twelfth consecutive year, Christmas Decor will be boosting the spirits of military families across the country through its Decorated Family Program.

With over 270,000 American men and women deployed throughout the world this holiday season, military families are facing the challenge of preparing for the holidays without their loved ones. To give back to the families of these brave men

Franchising USA

and women in a small way, Christmas Decor will be creating magical memories with its annual program.

Christmas Decor, the nation’s leading professional holiday & event decorating franchise, began the Decorated Family Program in 2003 after a franchisee attended a holiday dinner party and began to consider all of the men and women overseas who will not be able to celebrate with those they love. The program was created to thank our country’s soldiers for their dedication and support by decorating their family’s homes.

Each holiday, hundreds of Christmas Decor franchisees nationwide participate in this event by donating their products, resources and time to decorate the homes

of local military families as part of the Decorated Family Program.

“The holidays can be difficult for families with loved ones overseas both emotionally and with decorating, and we always look forward to doing our part to help make their holidays a little bit brighter,” said Brandon Stephens, President of Christmas Decor. “The American men and women fighting overseas are true heroes and launching this initiative, decorating these deserving families’ homes, is the least we can do to support our courageous troops.”

The company has been accepting nominations of deserving military families via the Christmas Decor Facebook page that will total at least 200 decorated homes for the 2014 holiday season. Winners are

being awarded based on their location (to ensure there is a local franchise to provide the award) and the impact of their story on the judges. This holiday season marks a record-breaking year for nominations as Christmas Decor franchisees are busy surprising military families nationwide.

“Never in my wildest dreams did I think we would win. With my husband scheduled to be deployed during Christmas, we knew the holidays would be a tough time for us,” said Agatha Shim, military wife and mother of two daughters, based on Joint Base Lewis-McChord during the 2013 holiday season. “My kids were jumping with joy when they saw our home decorated. Smiles were ear-to-ear.

It turns out that my husband was able to

“Each holiday, hundreds of Christmas Decor franchisees nationwide participate in this event by donating their products, resources and time to decorate the homes of local military families.” make it home for the holidays and we were all so appreciative of the work done by Christmas Decor. This made our family Christmas very special and is something we will never forget.”

Operating in over 375 markets and 48 states, Christmas Decor, Inc. is the largest professional holiday & event decorating franchise. The company offers a complete decorating service program including

display design, installation, maintenance, and removal of holiday lighting and

decorations. Now the franchise is in the

enviable position of being able to give back to communities.

Story by Brandon Stephens,

President of Christmas Décor.

For more information visit: www.christmasdecor.net

Franchising USA

V e t er ans in Fr anch ising

Page 45

V e t er ans in Fr anch ising

Prefer red H ealthS taf f

Veteran Support

A Year Round Promise In May, the nation honors military members who have made the ultimate sacrifice by honoring them on Memorial Day. In November, we honor everyone who has served in the military with Veterans Day. Many people and businesses pause to give special thanks to those who have served and are serving. For some it’s through kind words on social media, for others it’s through special discounts or free meals.

But for some, honoring and pledging to help our nation’s veterans is a year-round promise.

Donna Moyer, CEO and co-founder of Preferred HealthStaff is a member of the latter group. “As a provider of healthcare and an entrepreneur, I feel I am in a unique position to help veterans,” says Moyer.

“Not only can I help care for those who are injured, recovering, or were wounded and now need daily help, but I can also offer assistance to veterans looking for the next chapter in their lives.”

Preferred HealthStaff offers in-home care to anyone who needs it while at home, including veterans. Services range from

Franchising USA

health and travel needs, to companionship and home maintenance. The company also offers a substantial discount – 20 percent on the franchise fees to qualified veterans who join the Preferred HealthStaff team as a franchisee.

“I feel that I have a duty to help those who served our country so bravely,” says Moyer. And Donna Moyer knows that sense of duty well. Her family has a history of service, including her mother, her oldest son and her youngest son who is an Iraq war veteran and her own service in the U.S. Army. “Throughout my life, I have been taught the value of family support. I believe that same value, of military family support, is equally important. And that is why I feel privileged that I can help veterans after active duty.” Of course a discount on the franchise fee is not the only support Preferred HealthStaff offers its team.

Among the other benefits Preferred HealthStaff provides are marketing assistance and comprehensive training.

Moyer is a member of the International Franchise Association and its partner VetFran, which helps veterans find small business opportunities upon completion of their active service. In addition to her own sense of duty, Moyer feels Preferred

Donna Moyer

HealthStaff’s veteran discount program is a win for the franchise as well. “Veterans bring top-notch leadership skills and a can-do attitude. To me and the franchise opportunity with Preferred HealthStaff, that is important.”

At a time when unemployment is high, and veterans are searching for options, Preferred HealthStaff is offering a helping hand. A salute for the service that protects our homes.

For more information on Preferred HealthStaff and its franchise program visit: www.preferredhealthstaff.com

#1 Veterans Choice.

20% of our franchisees are retired or active duty members of the Armed Forces. Why? Our four exciting business opportunities not only celebrate the joy of outdoor living, but help them achieve their personal and career goals.

“An Outdoor Lighting Perspectives franchise has the right price points and support to allow a veteran to start a business and be successful at a greater speed than if they started from scratch. It’s an opportunity within your range to up your chance of being fully success in reaching your goals.”

Design & build stunning outdoor spaces

Illuminate home exteriors & outdoor landscapes

Clean & protect any outdoor surface

Eliminate mosquitoes & ticks

Chuck Rich, RCDD, PMP Active Air Force Reservist, Lt. Col.

Learn more at OutdoorLivingBrands.com/olb-veterans or call 800-722-4668

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Wallace Prop er t y M a nag ement G roup

post military life After 15 years of employment in Corporate America, Scott Wallace heard the one sentence that struck fear in happily employed citizens everywhere during the early stages of the recession: “We are down sizing and we’re going to have to let you go.”

Post lay-off, Scott found himself desperately seeking employment going from standing as a leader in business sales management to standing in the unemployment line.

Despite this set back, Wallace desired to come back stronger than ever, even if that meant switching gears in his career.

In 2006, franchise owner and founder Scott Wallace developed his initial property management model, Scott Properties of the Midlands and in 2013, he launched his franchise company, Wallace Property Management Group.

Wallace Property Management Group is a professional property management organization offering franchise opportunities for full-time, full-service property management systems. His ultimate goal is to relieve stress from high-end property managers and focus on effectively managing residential homes for property owners and tenants.

Some of the services provided include handling maintenance requests, rent

Franchising USA

collections, rental agreement renewals, property owner payouts, vendor payouts, end of year property owner reports, property owner tax forms, and more.

Wallace Property Management Group also assists with listing available properties on a robust, multi-media website as well as other third-party sites.

As a franchisor, Scott Wallace wants his franchisees to have core values that most active and veteran military have. Some of these values include loyalty, duty, selfless service and integrity. Growing up with these key principles instilled in him by his military father, Wallace strongly believes that veterans and active military are the perfect candidates to run and operate a franchise at Wallace Property Management Group. Because of his household experience and the overall nature of military personnel, he became a partner of VetFran.

Scott Wallace extends his welcome to veterans by providing discounts to qualified individuals. Wallace Property Management Group is headquartered near the largest army training facility in the United States: Fort Jackson. “I have very close relations with the military housing office helping military personnel find houses when they are done with active duty, and I also assist military homeowners manage property when they get orders,” says Wallace.

“I take great pride in offering veterans and active military an opportunity to focus on the ability to acquire and retain houses. My purpose is to bring awareness to veterans and active military about this unique franchise opportunity, so that they too can become successful entrepreneurs post military life,“ says Wallace.

Scott Wallace

Wallace Property Management Group simplifies the complex world of property management for franchise owners across the country. They specialize in management of middle to high-end housing for property owners throughout the United States. Benefits to veterans as a franchise owner includes, but are not limited to: • Rental installation to veterans and active military • Discounted franchise fee for all qualified veterans • Strong business, no matter the economy • Home-based business • Low start up cost • Large protected territories – high potential profits • Pre-opening, on-site, remote and ongoing training and mentoring • Personalized local market website For more information visit: www.wallacepmgfranchise.com

Page 49

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Contact Lynette James at 202-662-0782 or ljames@franchise.org if you are interested in exhibitingFranchising or sponsoring.

USA

V e t er ans in Fr anch ising

Jim Mingey, Veterans Business Services

Advantage: Service Disabled Veteran Franchisees!

The Veterans Administration and other Federal Agencies buy a lot of stuff!

Although the Federal Government won’t ordinarily buy food from a McDonald’s or other retail food franchises, if you’re a Service Disabled Veteran you might be able to sell them food from your catering franchise.

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Or maybe you own a franchise which sells moving services? Or what if you want to use your wheel chair ramp franchise to sell to older Veterans who are eligible for VA benefits? Yes there could be many opportunities but first you need to know how federal procurement processes work and how you qualify.

The fact is that many franchise distributed products and services from computer services to paper products are bought by the government every day. In 2013 alone the government purchased over $83 billion in goods and services from small business

and Service Disabled Veteran Owned Small Businesses (SDVOSB) received over $12 billion of those contracts. Many of these contracts are even set-a-side for only SDVOSB companies.

So what are they buying right now and how can you determine if you can compete?

The government keeps a database of active opportunities at www.fedbizopps. gov. Currently there are over 28,000 listed but to drill down you need to know your NAICS code (North American

“In 2013 alone the government purchased over $83 billion in goods and services from small business and Service Disabled Veteran Owned Small Businesses (SDVOSB) received over $12 billion of those contracts.”

Industry Classification System) so you can search the database. Even if you find an opportunity, you then still need to registered at SAM (The System for Award Management), the Official U.S. Government system to do business.

This is getting complicated, right?

If you need help, you can always contact one of the Offices of Small and Disadvantaged Business Utilizations (OSDBU) in every major federal agency.

These offer many different avenues for federal procurement knowledge.

The assistance is free but you should plan on a learning curve for mastering how to access and finally sell your product or service to the eventual “buyer”, a federal contracting officer. Many advise to become a subcontractor first before bidding on your own. However, if you do act as a prime bidder, at the end of the day it’s still about convincing the federal “customer” that your franchise offers the best value for the product or service the government needs.

So where do you go from here? How do you prove you’re eligible for contracts or set-a-sides?

The highest standard for certification of a SDVOSB now rests with the Veterans Administration and is administered by its OSDBU Office. They have a wealth of information on their Entrepreneurial Portal (www.va.gov/OSDBU/entrepreneur/index. asp) including franchising opportunities and they offer detailed information about their SDVOSB verification process.

A key element of certification is whether or not the franchise entrepreneur actually

controls at least 51 percent of the company and all day-to-day decision making.

Due to the level of control that can be contained in a Franchise Agreement, the Franchisor often can maintain significant amount of control over certain day-today activities as well as certain long term decisions of the Franchisee. That is the nature of a franchise.

Nevertheless franchises do and will continue to qualify for certification. A recent success story was a Tutor Doctor franchisee that won a bid and secured a $3.25 million contract with the U.S. Veterans Administration for Veteran training and transition services.

The VA’s Center for Veteran Enterprise (CVE) reviews the business documents for each franchise company applicant to assess if it meets the requirements of 38 CFR Part 74, the federal regulation which governs SDVOSB certification. The CVE decision process can depend on the nature of the product or services, the length of franchise agreement and even access to tools of the trade.

The VA works hard to connect small businesses, especially SDVOSB, with government and commercial procurement decision makers. The 2014 National Veterans Small Business Engagement (NVSBE) (Dec. 9-11) is VA’s premier event for the Veteran small business community interested in in competing for and winning business.

The NVSBE offers attendees an unprecedented level of engagement with procurement officials. Not a bad place for a SDVSOB to explore the federal marketplace!

Jim Mingey

VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the Veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment(VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for Veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for Veterans in franchising.

For further information visit: www.veteransbusinessservices.us

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VetFra n N ews

Veterans and Jobs Highlighted at Southeast Franchise Forum

The Southeast Franchise Forum (SEFF) met on Veteran’s Day, November 11, to recognize members who have served the United States and held a panel discussion about how veterans are finding successful post-military careers in franchising.

Among the veterans at the meeting were Jim Squire, CFE (Army; SEFF chairman and CEO), Joe Lindenmayer (Marine Corp.; SEFF vice chair), and Joe McCord (Air Force; SEFF board member).

Experts on the panel also discussed ways two other groups of people are finding success in franchising business opportunities: professional athletes and members of America’s diverse communities. Lindenmayer, chairman of IFA’s VetFran and president of TSS Photography, gave a status update on the nationwide veteran’s initiative.

“A recent IFA survey shows more than 50,000 veterans have joined franchising just this year, including over 400 who opened new franchises - and those numbers are conservative,” Lindenmayer said. “VetFran is making a huge impact on the post-military lives of veterans nationwide and the Southeast Franchise Forum is one of our most active and supportive partners.”

Lindenmayer said VetFran’s mission is to provide access and opportunities in franchising to veterans and their spouses.

Lindenmayer at the podium in February 2014 at the IFA Convention in New Orleans, LA. Behind is Mary Thompson, former VetFran Chair (USMC) and Steve Caldeira IFA CEO.

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“The Southeast Franchise Forum supports all of the initiatives of the IFA,” said Squire, executive vice president and

Operation Enduring Oppotunity (L-R: Bobby Saade (Army); Joe Lindenmayer (USMC); Greg Tanner (Army); Jim Squire (Army) and Ray Margiano (Army)

chief development officer of Firestorm, “and it’s our job to provide a forum for robust discussion and support here in the Southeast for the many programs available nationwide. We survey our membership regularly to learn what topics are of greatest interest and the three highlighted in November – veterans, athletes and diversity – are clearly top priorities.

We were glad to highlight them at the meeting.”

Stan Friedman, CFE, moderated the panel discussion. Friedman is president of FRM Solutions, a SEFF board member and winner of IFA’s Ronald E. Harrison Diversity Award in 2011. He is also cofounder and chairman of the Professional Athlete Franchise Initiative (PAFI).

PAFI is a virtual tool as well as a real world bridge between professional athletes and the franchising world which has helped many pro athletes transition to the business world, including Zelly

“VetFran’s mission is to provide access and opportunities in franchising to veterans and their spouses.”

Wesson who participated on the recent panel. A Workout Anytime franchisee, former professional basketball player, and certified personal trainer, Wesson shared with SEFF members how vital it is for professional athletes to develop a business stream after their pro careers and play to their personal strengths. PAFI, a hub of education, research and interaction for professional athletes and the franchising community, has been essential in helping Wesson and other athletes develop synergistic relationships in franchising after retiring from pro sports.

Thompson, CFE, vice president of development for Premium Franchise Brands, who spoke about the need for operational excellence, leadership and sales skills in building diverse teams of people around a central vision.

Wesson and Lindenmayer were joined on the November 11th panel by Scott

For more information visit: www.sefforum.com or www.vetfran.com

The December meeting of SEFF will feature IFA president and CEO Steve Caldeira who will share reflections on franchising in 2014 and franchise opportunities in 2015. The Hill Newspaper recently named Caldeira as one of Washington’s top lobbyists.

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ex per t advice

David Banfield, President, The Interface Financial Group

Are You Ready?

Have you been thinking about launching your own business? This is the time of year when many would-be entrepreneurs start to get serious with their business plans in order to launch the next world-class business.

Getting organized at this time of year enables new business ventures to launch early in the New Year - a time historically when things start to move forward.

While you may be gearing up for that new business, some of the questions that need to be addressed are: Are you ready? Is the time right? Is the economy right?

Is it possible that you could answer YES to all three questions? It could be - being ready means that you will have very clearly identified the business model you wish to adopt, you will have completed the appropriate market and geographical research, and you will have looked at all of the financial logistics.

In other words, your business and marketing plan are completed and ready for action.

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“The success or otherwise of your business will be not only in the execution of the day-to-day operations, but in the planning before you ever open your doors.�

What about timing, is this really the right time for your business - have you looked at any seasonal aspects that might have an influence over your start-up time? And what about the economy? Is that in sync with your proposal and ideas?

This is a much abbreviated checklist of things to do and consider. Even this short list may prove to be a daunting experience for some. It might lead many less dedicated individuals to defer their start up, in which case they will probably never start their own business. If you can’t tackle the requirements now, it is unlikely that you will have a change in your circumstances and outlook at a later date that will help.

If the time is right, then the serious entrepreneur will move forward. Knowing what business model is appropriate for your circumstances can go a long way to resolving the start-up paralysis syndrome.

What if you could acquire a business that had all of these areas already covered? If you could, it is probable that you would even be prepared to pay for that particular business or model.

Franchising goes a long way to providing all of the nuts and bolts of a business duly connected. A franchise is a system built around a proven and established business model with its own individual business plan. But even with franchises, which come with little assembly required, there is always the element of timing to think about.

Many franchises will require staff to run the business - now you need to look at your local labor market and ascertain if

the timing is right to find the right people for your franchise team. Likewise with premises - are the ideal premises available at a realistic cost? It is not unusual for some franchise brands to take months or even longer to locate an ideal franchise site for a new franchisee. In the franchise world settling for anything but the best location is rarely an option.

Financing will also be an agenda item whether you start your own business, form a new company and essentially build from the ground up, or go the established franchise route. In either model there will be a cost and appropriate start-up expenses. The difference, however, is that in many franchise models the franchisor often assumes part of the financing burden or provides terms that enable a franchisee to get their franchise started quickly.

Clearly there is much to consider before you make that leap into entrepreneurship.

Is there one vehicle that could solve all of these start-up concerns? Probably not, however some franchise models are now created around a home-based environment, thus eliminating the costly need for rented accommodation. Some models also provide many day-to-day services for the franchisee at the Head Office of the franchisor, thus enabling the franchisee to work with no or minimum staff.

A potential entrepreneur or franchisee has control over many of these areas. What is sometimes out of reach is the prevailing economic climate that might determine success or otherwise for the new business owner. Judging whether the economic climate is appropriate may also prove a difficult task. Therefore, the question

David Banfield

might be asked - Is there a franchise or any other business model that is recession proof? While many may have claims that tend to indicate they are immune to the ups and downs of the economy, in reality few are protected from the vagaries of the economy.

Whichever route you take or model you employ, the success or otherwise of your business will be not only in the execution of the day-to-day operations, but in the planning before you ever open your doors.

Plan thoroughly and well in advance - the plan always takes longer than you think.

Build in plenty of contingencies and expect things to take longer to execute than your first estimate. Solid planning plays a crucial role in determining success and longevity of a business.

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

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ex per t advice

Jenna Oltersdorf, Principal, Snackbox PR

Media Tips for Franchisees

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s

“Before any interview, big or small, prepare a bulleted list of your key messages.”

As a business owner, you never know when you’ll be interviewed. Most likely, it’s not something you’ve done a lot of, so the thought of talking with the media might be nerve-wracking. But whether you’re prepping for an interview you’re doing this afternoon or there is nothing on the horizon, here are some tips you’ll need to ensure you’re ready when the time comes. And, as a franchisee, you need to be familiar with your franchisor’s protocol in terms of media interviews.

As an interview is happening, news is happening. And when news is happening, we very rarely have time to prepare. News could be as simple as a grand opening or anniversary for a community newspaper or as complex as dealing with a medical emergency at your franchise location making national headlines. Either way, the key is to be calm and informative.

Top Media Do’s: 1. Before any interview, big or small, prepare a bulleted list of your key messages. Limit your list to no more than five key messages, so they’re easy to remember.

2. When the interview is taped it’s okay to ask the reporter if you can re-do your answer once or twice … but don’t go overboard with the request.

3. When interviewing on camera, make eye contact with the reporter, not the camera. Let technology eavesdrop on your conversation.

Jenna Oltersdorf

5. Don’t fidget. No swinging around in

your chair, cracking your knuckles or popping your pen. Hold still and stay focused.

Once an interview has wrapped up, it’s

always good to follow up with the reporter to see if any additional information is

4. Be personable, be informative, but also be succinct.

needed.

5. Spit out your gum.

a copy for your files. It’s always a good

Top Media Don’ts: 1. Never, ever make up an answer. If you don’t know the answer, simply say: “I don’t know, but I will find the information and get back to you.”

2. Under no circumstances should you ever be late for an interview. Arrive to your interview spot at least 15 minutes early.

3. Don’t feel you need to fill the silence.

Answer the question then allow the reporter to take notes, gather their thoughts and ask the next question.

4. Don’t try to wing it. Practice can make anything closer to perfect and the same goes for interviewing. Practice in front of a friend, a mirror or a camera.

And, once your story is live, be sure to get idea to take a look and evaluate yourself, but also ask trusted friends to be honest.

Once you identify where improvements

can be made, your next interview will be even more polished.

Good luck!

Jenna Oltersdorf is an experienced public relations pro based in Austin, Texas. Her firm Snackbox specializes in food, consumer packaged goods and franchise media relations and social media. Client experience includes Smoothie King, The Meat House, and Hardee’s/Carl’s Jr..

For more information, visit www.snackbox.us

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Jason Power, Senior Attorney, Shelton & Power

What if

it doesn’t work out?

Benjamin Franklin once said “In this world nothing can be said to be certain, except death and taxes.”

This quote, in a way, speaks volumes to all who hear it, but it can also be interpreted for franchise owners as well.

The only certainties for franchise owners are that they will one day leave the franchise system and they will have to pay fees to the franchisor, i.e. death and taxes.

“When you are preparing to separate from the franchise... you must understand that you will have ongoing obligations.”

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“As with any lifestyle choice, the decision to be an entrepreneur has its ups and downs.”

The life of a franchise owners can be a very lucrative one. As with any lifestyle choice, the decision to be an entrepreneur has its ups and downs. There are the highs of being your own boss and making important decisions that impact the profitability of your business and paving your own way; but at the same time there are the downs where paying the franchisor a royalty and marketing fees are a necessary evil and making sure you are following someone else’s procedures is a must to avoid losing everything, not to mention the finite time you have with the franchise system.

So, when push comes to shove, the life of a franchisee is very uncertain because termination, expiration, or selling out are the only options really available. This article is not intended for those lifetime franchisees, but is instead intended for that franchisee who starts the process of buying and decides, either through buyer’s remorse or by circumstances, to back out or that franchisee who opens for business and just can’t cut it. For those of you who fit this model, we feel for you.

Franchisors are becoming increasingly picky about who they award franchises to.

The reason for this is because they want to assure as much certainty as possible in the longevity of their franchisees and their franchise system. Franchisors do not want a high turnover rate because that results in a bad reputation for them as well as higher costs to train new franchisees. When a new franchisee signs on, the franchisor is spending a lot of time and money to analyze and train that person; so what happens when that franchisee pulls the plug?

In most franchise agreements there are refunds available to franchisees who back out of the franchise purchase early on. Many of those franchisors who offer refunds will do so only under special circumstances such as if the franchisee fails training or cannot find a suitable

location. Other franchisors, however, will give a partial refund under any circumstance as long as the franchise agreement is terminated before certain timelines have been met.

Very few franchisors, if any, will give a 100 percent refund because of their costs to bring the franchisee on board which can include legal costs, staffing costs, printing costs, etc. associated with that franchisee.

The best thing to do if you feel the franchise going sour early on is to bring it to the franchisor’s attention immediately to discuss a friendly separation.

When you are preparing to separate from the franchise whether it be the day after signing the franchise agreement or eight years in, you must understand that you will have ongoing obligations. Once you sign your name to the franchise agreement or any preliminary agreement with the franchisor, you are obligating yourself to confidentiality and non-competition agreements, among others. The reason for these obligations is that when you sign the franchise agreement or preliminary agreement, the franchisor will start providing you with information that is special to that franchise system. The franchisor does not want this special information used against them, so you will be required to agree to various restrictions if you want to separate from the franchise.

Sometimes these restrictions can be negotiated and reduced to allow you to seek employment in the same field, but you can be positive that you will have some restrictions imposed against you from using the knowledge acquired in competition against the franchise system.

If the franchise does not work out, and you decide to leave, then you should begin discussions with the franchisor and a third party advisor, such as a franchisee attorney, immediately to discuss your best position and options. If the decision is because the franchisor has not been living up to their end of the franchise agreement

Jason Power

then you should discuss your decision to terminate with a franchisee attorney who may be able to negotiate with the franchisor to return a larger portion of your investment and possibly negotiate a reduction or waiver of your confidentiality and non-competition restrictions. Before you decide to terminate the franchise agreement, regardless of whether it is early on or several years in, you should discuss your reasons with a trusted advisor so you can properly document those reasons which can help your position when negotiating your exit.

As was said in the beginning of this article, “In this world nothing can be said to be certain, except death and taxes.”

Your franchise ownership should be one of the best decisions you ever make and should be designed to help you reach your goals throughout life, but when purchasing your franchise do so with the knowledge that, like in all facets of life, there is no certainty of success or longevity.

Jason Power is a senior attorney with Shelton & Power franchise law firm.

Jason has been helping entrepreneurs review and negotiate franchise purchases since 2009 and is a regular speaker at the International Franchise Expo, West Coast Franchise Expo, Franchise Expo South and various other franchise expos where he gives tips on how to analyze and negotiate a franchise purchase.

For more information: Website: www.sheltonpower.com

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Focus by Gina Gill

T he Piz z a Press

Publish Your Own Pizza Dara Maleki never expected his business concept to become so popular.

After opening The Pizza Press in 2012 in Anaheim, California, the company steadily gained in popularity and customers frequently requested Dara to expand beyond his original location.

The Pizza Press currently has two locations in Orange County, and Dara and his team have been responding to the public’s demands to expand.

Franchising was the natural next step for the business; The Pizza Press has spent the past three months assembling their franchise team to ensure proper sales support. They are currently working with five or six applications with 20 more to process.

“We’ve had great success and have always built [The Pizza Press] out to be a multi-unit. In the very beginning we wanted to make sure the concept was sound and it was. After about nine months we had a lot of inquiries from Canada and surrounding states about franchising; people saying they would love to have one in their town,” explained Dara.

“That’s what really drove me to deeply consider that and look at all the different ways to grow our business. Franchising seemed to be a great way to share a

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concept with some other great business owners. We have had so much interest and met a lot of good people along the way. It’s awesome.”

The Pizza Press is a fast casual pizzeria with a twist: customers get to “Publish Your Own Pizza” - with their pizza being made right in front of them by a friendly Pizza Editor, they get to pick and choose from a wide variety of fresh vegetables, meats, sauces, cheeses and finishers.

All pizzas are freshly baked through a conveyor oven and are ready in less than four minutes.

The Pizza Press also offers “Publish Your Own” salads which follow the same customization process. Since customers can “Publish Your Own”, each meal can cater to a variety of dietary needs.

The personal touch of building your own pizza at The Pizza Press makes them stand out, but they provide more than just food and drink - The Pizza Press offers an experience. “In this technological age when you are buying everything on Amazon and you’re able to shop for all your clothes online, there is a lack of interaction between people,” said Dara. “It’s not an experience they have every day. They go in [The Pizza Press] and have great service in a great environment in a place where they can share a conversation with their friends and family.”

The Pizza Press also prides itself in offering their customers a vast selection

of fine craft beers from local breweries.

Each future location of The Pizza Press will continue to support surrounding areas and stock its taps with local beer.

“We like to support that local feel and get some great finely crafted beers that we can then share with our guests because, to be honest - there is nothing better than a hot pizza and a nice cold beer,” Dara explains.

Franchisees receive ample support before and during ownership, with a week of training at The Pizza Press facility in Orange County and an additional five days of training before a grand opening.

Once set in place, restaurants will have an operations manager who acts as a supporter, a team member and an advocate to help franchisees overcome the challenges that every restaurant faces during a store opening. Technological support is always available and a website, social media and marketing program is provided.

“The service we offer to our guests in our restaurant holds true in our values with our franchisees. If we can’t support our franchisees and give them the same amount of customer service and support that we give our guests who come in, we didn’t really feel like that would be the right thing to deliver,” said Dara. “We make sure they are sound financially, make sure their costs are where they need to be to ensure they are being as lean and as profitable as they can be.”

Location is important to The Pizza

“The personal touch of building your own pizza at The Pizza Press makes them stand out, but they provide more than just food and drink - The Pizza Press offers an experience.”

Press concept. The original location in Anaheim, California is across the street from Disneyland and their second location in Orange, California is near the university in Old Town Orange. Both locations give a Main Street USA vibe which connects with The Pizza Press brand. Although locations can be anywhere, owners should be familiar with the area in which they operate and securing a location will be determined during the franchising process.

“All stores and all locations come in different shapes and sizes but we want to make sure that every Pizza Press franchise is customized to that area. Just as much as our pizzas are customizable, the store experience is too,” said founder Dara Maleki.

Business owners should be passionate people who have a desire for excellence in business, service and taking care of others.

Those interested in franchising The Pizza Press should be hardworking individuals with a positive attitude, solid skills in

business operation, problem solving and leadership. Having previous restaurant experience is preferred but not required.

Dara attributes the success of The Pizza Press to his thrive for business and inspiring others to reach greatness as well as creating a team environment and genuinely caring about fellow employees.

With the success The Pizza Press is experiencing, many plans are slated for the upcoming year. “We want to get our product out there and we have been flooded with applications. By 2015, we want to build out the support side for our franchisees and get about twenty new franchise locations opened in that year,” said Dara. “It’s been a whirlwind, we have had great responses from people and they want to get onboard. They are loving what we do, loving our culture and the product The Pizza Press has to offer.”

For more information visit: www.ThePizzaPress.com/franchise Dara Maleki

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ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

The Greatest Gift You Can Give You. No - the genuine you… The you that at some point in your past you parked in a corner so you could do the “responsible thing” and take that “secure” corporate job that was on the path to high income, great benefits and which might let you enjoy life sometime after your 65th birthday.

Give your family you. That is the greatest gift that you can give your family.

How can that be, though? You have always had their best interest in mind.

You always wanted to be their provider, their rock, their stability.

Does your family find true enjoyment in you working long hours, being a road warrior, coming home stressed and answering emails on your smart phone when you are with them? Is there even the slightest chance that your grown kids will someday look at you and say “Dad/Mom, I wish you had worked more”?

The rules changed. Not just some of them, pretty much all of them.

Today the corporate job that was supposed to be the safe secure path to a happy retirement is often just a momentary stopover until the next gig. Employees tend to be pawns on a chessboard that are disposed of to hit earnings expectations or maintain stock price. Many employers don’t worry about employee satisfaction because there is a robust pool of people eager to work and often employees leave seeking something better.

December is one of the most likely months for corporate downsizings.

That’s the bad news. But there is good news.

While the good faith contract between employee and employer that we knew 20 years ago has largely evaporated, the perceived wall between being an employee and being a business owner has disappeared completely.

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“Give your family you. That is the greatest gift that you can give your family.”

Takeaway number one: • All income is now grouped as portfolio revenue, even your paycheck • There is no philosophical difference between a paycheck and a disbursement In your portfolio you leverage four things: 1. Skills, 2. Experience, 3. Time, and 4. Money A job requires you to apply high skills, low money and high time. You tend to have only one job in your portfolio at a time, if you have one at all. Physically you can’t take on two 60-hour per week jobs, so this is the monetary limitation here. You don’t get hired for a job then subcontract it out to another executive for less money in order to free up your time and generate profit. While jobs provide a perceived sense of a secure revenue stream they also have a healthy dose of income limitations for really skilled operators.

A business requires you to apply high skills, a range of money (low to high) and a range of time (low to high). This is where you get to find out if you are as good as you think you are. For reasonably skilled operators the best returns may be in business ownership.

If you would be a good hire for a corporate job, how could you possibly be a bad investment for yourself?

A stock or real estate investment requires you to apply low to mid skills, low to high money and often low time - a good portion of a portfolio, but not one where your skills influence the outcome by much.

The financial benefits of these approaches will also cover a wide range. The key is diversification, not a new idea but when you broaden your view to consider all revenue as coming from your portfolio,

and a portfolio having anything from a job to a business (or both) or more traditional investments, then it becomes interesting.

Those four items you can leverage to build your portfolio can determine how big the outcome. If you are short in any of the four areas, your first goal may be to figure out how to overcome that deficit.

Business owners leverage everything: Money, time, experience, resources, etc.

They seek to make more while working less so that they can enjoy life before they get to 65 years old.

Business owners don’t get downsized.

The key to the whole equation is to make sure you know yourself (I will mention your model again here - contact me if you need help putting one together). Your specific skills, strengths, experience and how you like to work will play a role in what you try to connect to your portfolio whether a job, business or other endeavors.

So, now that we have removed the separation between jobs and business ownership how does it feel? Different world?

Corporate America has given us all a gift, they removed the biggest reason that most people would want to be there for their entire careers. Without job security, benefits and quality of life we see jobs losing their hold on professionals. The best and brightest in corporate America are among our clients every single day.

At this point the best thing corporate America offers is the ability for a young worker to build the skills and experience they can then leverage into business ownership mid-career. Will we see corporate careers more likely to end at 40 than at 65-70? We already are!

You set off on a rewarding career where you could go do big things and live a life you envisioned as you were leaving school.

George Knauf

You wanted to enjoy life, have a family and pursue your hobbies and interests. It was a clear and simple goal.

Along the way things maybe turned out a little different than you expected. You work a little harder, travel a little more and feel like the goals you had are still out on the horizon.

But, you have built the resources needed to pursue your goals. The happiness you sought is still available to you.

One thing is certain: There are people less capable than you accomplishing greater things than you have yet to imagine for yourself.

If you would hire yourself, this may be your time. We have seen folks just like you thrive after going through our process.

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.FranGuide.com

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Christopher Conner, President, Franchise Marketing Systems

FRANCHISING vs. LICENSING Frequently, business owners considering growth through third party distribution systems will be faced with the question of whether to license their business or franchise the business model and what the best course of action should be for growing their brand. Both concepts have many similarities and both live in a world of gray like many areas of business.

There are some key differences between the two structures and both are valid expansion models given certain business circumstances.

Franchising Let’s start with franchising. A franchise is a business model which comprises three key elements – use of the brand, use of the business system and payment of a fee for the use of these two together. Many refer to franchising as having a three legged

“In my experience, the companies that should franchise are ones that are concerned about the quality of their brand as it is represented in a given market.”

Franchising USA

stool which includes these three elements.

Why use it:

What is it?

• Allows someone to use your name and trademark

Franchising is when you allow the use of your business name and business system for the payment of a fee upfront and/or ongoing.

Why use it: • Allows someone to use your name and trademark • You are paid a fee of some kind, generally it is an upfront fee plus an ongoing royalty payment such as a percentage of sales or a fee per product sold • Can be a more cost effective solution to expand initially • Allows operational control for consistency • Provides an exit strategy for the business • Common branding and marketing for brand awareness Common Uses: • Used for business expansion to grow a business model in wide array of industries including service, food, lodging, retail, professional services, medical, and many others • Great use for manufacturing and distribution businesses • Converting other companies into your franchise • Used to help co-brand other existing similar types of businesses Limitations: While you have the ability to enforce operational requirements and consistencies, only the franchisee is able to manage employees.

Licensing On the other hand, licensing comes with much less regulation and stipulations associated with the process. It also does not afford the licensor with as much control or influence on licensee’s business.

What is it?

Licensing is when you allow the use of your business name and/or marks for a fee.

• You are paid a fee of some kind, generally it is an upfront fee and could include an ongoing royalty payment such as a percentage of sales or a fee per product sold under the brand name • Can be a more cost effective solution to expand initially • Common branding and marketing for brand awareness Common Uses: • Often used for sale of products, an example might be a toy manufacturer licensing the rights to use Disney character names and images • Sometimes is used as alternative expansion model to achieve brand awareness and get more market coverage quickly • Used to help co-brand other existing similar types of businesses or in Master arrangements where a brand is licensed to a third party in other parts of the world (International Master Franchise) Limitations: The greatest limitation of licensing is its ability for you as the licensor to be able to control operating procedures of the business operation.

When buying a franchise, an entrepreneur should look at balance sheets and bottom line and compare it to similar franchises in similar areas. Also, they should perform a name-brand availability search and investigate Intellectual Property issues such as patent ownership.

that are concerned about the quality of their brand as it is represented in a given market. Franchising allows the franchisor to dictate most, if not all of the operational responsibilities and standards to be followed by Franchisees. Licensing on the other hand is a much looser relationship and will include only either the brand OR the business model, not both.

Before taking this step forward into either distribution system, I would recommend speaking with someone who could reference experience in developing third party distribution systems and can help in evaluating a given business model as to whether Licensing or Franchising is the best growth vehicle.

Christopher Conner has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting.

Christopher has worked with multiple International franchise and licensed organizations throughout the United States, Middle East, India and Europe.

He has an MBA in Finance and Marketing from DePaul University in Chicago and a Bachelor’s Degree from Miami of Ohio.

For more information visit: www.franchisemarketingsystems.com

Anyone selling a franchise should be sure to protect their Intellectual Property and create comprehensive work manuals and maintenance programs. Anyone selling a license should ensure that their Intellectual Property is protected by law and specify what rights it grants the licensee.

Both licensing and franchising are viable expansion vehicles; there is no wrong answer to which is best for a particular business model. In my experience, the companies that should franchise are ones

Christopher Conner

Franchising USA

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Andy Roe, General Manager, SurePayroll

Understa Human Be Will Help You Lead

Psychology and business weren’t always steady partners. But these days, more than ever, those who run businesses realize that the edge they may need to be successful lies in the science of understanding other people.

As a franchise owner, your ability to understand the psyche – the internal desires – of your customers, as well as your employees is going to be a big part of your job.

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anding ehavior A recent report from CBS Las Vegas, profiled entrepreneur Shane Green, founder and president of consulting firm Shane Green Enterprises, who has degrees in marketing, business administration and social psychology.

According to Green, business has changed over the course of the last decade. We used to focus primarily on things like production costs. Now we focus on customers with a much more psychological approach. What do they want? How to build a relationship with them?

The study of psychology help your franchise in the following ways: • Management. This is selfevident. A manager has a collection of employees, all with different personalities. Getting the best of all of them requires strong people skills.

Chances are, one management technique won’t work with everyone. You’ll have to learn the personalities of your employees and figure out what best motivates those individual personalities.

• Marketing. What drives customers to make decisions? Before you can have a successful marking plan, you need this knowledge. Studying human behavior can help you get a keener sense of this.

Is it just your product customers like? Or is it the packaging, the delivery, the way you take their order? What really keeps them coming back?

• New products. How does a business figure out how to change to keep ahead of consumer trends? It takes a strong sense of figuring out the future.

Andy Roe

“We used to focus primarily on things like production costs. Now we focus on customers with a much more psychological approach.”

It means deciphering how consumers will react to technological changes.

Understanding psychology will help a business survive changing economies.

As a smart business owner, you may want to invest in training your supervisors in the field of psychology. It transfers universal skills to their arsenals. Healthguidance.org points out that every interaction you have is in some way psychological – including with customers and employees.

Every time you interact with someone this means that you will be using psychology.

Psychology is essentially the study of how people think, so if you study this you will learn better to second guess what people are thinking at any time and you will have the skills that you need to impact or change what they are thinking and how they feel.

Now let’s be clear: no one expects you to become a trained psychologist to run your franchise. And some of this will come naturally to you. However, as you go forward, it’s a good idea to do some basic research on the topic, whether it be through online resources or in your local library. Also keep an eye out for new

studies that might provide some tips on how to treat people.

When it comes to being a good boss to your staff, recent research suggests the old model of being a demanding and unforgiving leader doesn’t necessarily produce good results in the workplace. At the same time, the reality is Mr. Nice Guy isn’t always the answer either.

An ability to balance your own competitive drive as a franchise owner and the psychological needs of others will be an important skill to add to your repertoire.

Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company.

SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with 1-10 employees. You can follow Andy on Twitter @AndrewSRoe. For more information: Website: www.surepayroll.com

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info@highervisibility.com

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