Franchising usa T he ma g a z ine for franchisees
VOL 03, ISSUE 4, feb 2015
$5.95 www.franchisingusamagazine.com
Filta
environmental kitchen solutions prosperous business venture
thinking
Outside the Box M a i n F e at u r e
business Services Franchising LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
PASSIVE INCOME MONTHLY REVENUE HANDS FREE BUSINESS OWNERSHIP We are an Inc 500/5000 company as of 2013 and over 5 years of business growth. What if a store carried income items that produced $500/month to $20,000/month? Although sounding a bit “Too Good To Be True”, that store exists. We
are
looking
for
capital
investments of $50,000 to $700,000 to put a partnership together with you. We buy it with you and run the business for you, and we maintain and grow your online business. Similar to a real estate agent, Income Store finds “Revenue Generating” websites for individuals, groups and funds. They refer to the individuals, groups and funds as “Site Partners”. Income Store takes the real estate agent model to another level. Not only does Income Store find revenue generating websites, they buy, manage, market and further monetize the website for their Site Partners. Income Store uses the term Site Partner because they have skin in the game. Instead of getting paid an upfront fee, like a real estate agent, Income Store receives a revenue share on each site purchased. TGC has a four-year growth rate that placed them on the Inc. 5000 list this year as the 1083rd fastest growing U.S. Company. TGC partners with executives, athletes, authors and industry thought leaders on Authority Websites. TGC co-owns, manages markets and monetizes over 200 Authority Websites that will be viewed over 100 Million times in 2013. Watch our videos on IncomeStore.com and TodaysGrowthConsultant.com web sites for more information on this home-based business. Website: www.incomestore.com
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Franchising usa T he ma g a z ine for franchisees
FRANCHISING USA VOLUME 3, ISSUE 4, feb 2015 president: Colin Bradbury. colin@cgbpublishing.com
Publisher: Vikki Bradbury. vikki@cgbpublishing.com
Advertising Sales: Kimberly Kutnick kimberlyk@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Editorial team: Rob Swystun Gina Gill
Production: usaproduction@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: filta environmental kitchen solutions
CGB PUBLISHING Canadian Office: 676 Wain Road, Sidney B.C Canada V8L 5M5 U.S. Office: 800 5th Ave, #101 Seattle, WA 98104-3102 Sales: 847 607 8407 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 Franchising USA strives to help you on your journey to success in franchising and this February issue will give you the knowledge you need to pursue your dreams.
Generator who offer numerous services to the industry.
Starting with the cover story we feature Filta Enviromental Kitchen Solutions a unique franchise concept with multiple proven environmental service to the commercial kitchen industry.
Women in Franchisng is an interesting and thought provoking topic and we look at how women have raised the bar in 2014.
The main feature this issue is Business Services and the many different options to consider if this is the field you choose as a potential franchisee, be it financial or technical. Continuing this theme we Focus Franchise Foundry and Spotlight Loyalty
As usual we have some great advice from our team of experts including George Knauf – “It’s all about Growth” in which he got the chance to sit down with some executive team’s from some of the top brands in the U.S. We also have Shelton & Power who start a three part series on Which Franchise to Buy with part 1 focusing on Financial reports.
Last but not by any means least we have our regular Veterans Supplement with contributions from James Mingy, Darcella Craven, and Brandon Moxam. Until next month, Happy Reading Vikki Bradbury Publisher
“Whatever you have accomplished to date, is just a small fraction of what is possible for you.” Tania Allen
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
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On the Cover
50
Filta Enviromental Kitchen Solutions
Business Services Franchising
50 Thinking Outside The Box
David Banfield, The Interface Financial Group
54
10 Cover Story
february 2015
22 Feature Article
30 In Every Issue
06 Franchising News Announcements from the Industry 22 Feature Article Business Services Franchising 33 Veterans Supplement News and Information for Veterans in Franchising
Women in Franchising 52 Women Will Raise the Bar in Business in 2015
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52
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Contents
30 Food For Thought On Franchising Al Palladion, Rebounderz 46 It’s All About Growth George Knauf, Franchoice
f ra nchising usa
18 Which Franchise to Buy When Financial Numbers Lead and When They Lie Lynn Shelton, Shelton & Power
18
Expert Advice
50 Thinking Outside The Box David Banfield, The Interface Financial Group
58 The Generation Z Effect Harold Kesterbaum, HLK,P.C. Law Firm 60 What Makes A Good Employee Great Andy Roe, SurePayroll
10
54 A Non Technical Guide to Becoming Tech Savvy Rolando De La Torre, Jr, Zeehub
Focus 14 Franchise Foundry 26 Stratus Building Solutions
16 Loyalty Generator 28 Best Franchises LLC
Profiles 12 Jimmys Fries and Shakes
18
Spotlight on Services
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what’s new!
Marilyn Monroe™ Spas: fun, flirty, and fabulous
The brand currently operates 11 locations with services ranging from massage,
facial, hair care, hydrotherapy, nail care,
makeup, waxing and more. In addition, all Marilyn Monroe™ Spas locations sell the company’s branded products, including
Natrue certificated organic skincare, vegan & “three-free” nail polish, makeup and hair care.
“Our Nail Lounges and Glamour Rooms are a fresh, new, clean approach to the
local beauty centers, and are a one-stop-
shop for every beauty need,” said Weiss. “Marilyn Monroe™ Spas delivers the
perfect blend of glamorous luxury and affordability.”
Multiple franchise opportunities are available for single-units as well as
multi-units, area developer domestically Marilyn Monroe™ Spas is now franchising its popular Nail Lounge and Glamour Room concepts. Led by spa industry veteran Niki T. Bryan, founder and CEO, and former Disney
executive Allen “Al” R. Weiss, executive chairman, Marilyn Monroe™ Spas offers a contemporary take on the traditional day spa and leverages the universal appeal, sophistication and intrigue of the Marilyn Monroe™ brand persona.
and master franchise internationally. At a glance, the investment for each Marilyn
Monroe Spa™ varies based on location, square footage and regional market. For more information visit: www.marilynmonroespas.com
Atlanta Based Sid’s Pizza Launches National Franchise Program features wings, subs, burgers and salads, with dine-in, take-out, delivery and catering. Some of Sid’s specialty pizzas have achieved a cult-like following. In its over ten-year history, Sid’s Pizza has earned numerous accolades: Best Pizza on the Northside by readers of the Atlanta Constitution, Editor’s Choice for Best Pizza by Points North Magazine and Atlanta’s Best Kept Secret by DaveFM. Sid’s Pizza has the procedures to produce a high volume of superior-quality pizza from a smaller space with relatively low food and labor costs. With its operating system and oven, a location can generate 100-plus large pizzas an hour. Atlanta-based Sid’s Pizza & Grill Managing Member Stan Kurnett announced the company is launching a national franchise program.
Said Stan Kurnett, “I’m not interested in being the biggest – just the best. What really drives me is hearing a customer say, ‘This is the best pizza I’ve ever had.’ It makes the hard work worthwhile.”
Sid’s Pizza offers authentic Sicilian pizza, handmade and stone baked, in a vintage California surfer atmosphere. The menu also
For more information on Sid’s Pizza franchise program visit: www.SidsPizza.com
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SNAP FITNESS UNVEILS BRAND UPDATE INITIATIVE Snap Fitness, America’s fitness brand that offers a world-class workout experience at an affordable price, has announced a brand remodel featuring a modern, sleek aesthetic update. The goal for the remodel is to provide franchisees and the rest of Snap Nation with a new look and feel without compromising the quality workout experience the brand is known for. The most prominent feature of the redesign is the custom wall options that feature hundreds of Snap Nation members. Franchisees can choose either a unique full-color collage or an American flag collage that they can customize with their own images of members, personal trainers, and more. “We knew right away we wanted to make a statement with the club redesign. It needed to be bold, but also inspire our members,” says Steele Smiley, chief officer responsible for brand strategy. “We viewed it as a huge opportunity to both motivate
and grow our member base, and the final
The transformation will begin in early
“Our brand has enjoyed more than 10
in Chanhassen. Each new club will
design of our clubs,” says Snap Fitness
opportunities offered as an option to
new redesign, we aim to modernize our
To find out more about Snap Fitness and
product will do just that.”
2015 with the brand’s flagship location
years of success with little change to the
adopt the updated design, with redesign
Founder/CEO Peter Taunton. “With this
current franchisees.
clubs while further establishing ourselves as America’s fitness brand.”
explore franchise opportunities, visit www.snapfitness.com
meetinglists.com seeing great success in hospitality industry Quality, Targeted Group Prospecting Data at Your Fingertips MeetingLists.com, a fully searchable online database, has seen great success in providing hospitality clients access to quality, targeted group meetings data. The database is rapidly becoming The Hospitality Industry’s #1 Group Prospecting Resource serving hotels, many of which are franchised. MeetingLists.com is the brainchild of Meetings Database Institute (MDI- a leading consultancy), which has created and perfected comprehensive meetings research for clients for more than 20 years.
150 criteria available to refine the user’s search and optimize time and resources by delivering prompt, meaningful information. An overview of the group meeting specifications is included in the search along with key contact details, making it incredibly easy to find the group meetings that hotels and related service providers want. For more information about MeetingLists.com and its easy-touse database visit: www.meetinglists.com
“Our MDI clientele frequently asked us for a resource that would allow them easy access to search for group meetings that align with their industry directly, “said MDI’s co-founder and Executive Vice President Colleen Swanson. “It only made sense that we create a platform where our clientele could dictate their own budget and the time spent searching for the group meetings data they need. That’s why we developed MeetingLists.com.” The do-it-yourself database provides customers with more than
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what’s new! Native Grill & Wings Taking Flight
FLIPS® Launches Franchising Program Retailer says “Hello Toes®” to fashionable flip flop franchising FLIPS®, an original flip flop retail concept specializing in fashion and comfort, unveils a unique franchising program spanning more than 40 states and targeting California, Arizona, Nevada and Florida for immediate growth. Founded in 2009 inside the Mall of America in Minnesota, the brand’s franchising model targets both fashionminded individuals looking to take the entrepreneurial leap and established business owners looking to expand already successful portfolios. The founding team brings more than 90 combined years of management experience with leading national retailers, specializing in fashion merchandising, store operations, sales and marketing and executing business startups. “Our brand focuses on one key product – flip flops – and showcases it in a way that’s truly different from any other concept out
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there,” says Rudy Simondi, CEO and co-
founder. “We focus on fashion, selection, comfort and quality, all in a casual and friendly store environment.”
FLIPS® uses a proprietary merchandising
system to help customers find the right style and size. Customers match the
location number of the pair they like from
the tabletop display and use the pullout bar below to easily locate their selection.
“Owning a FLIPS franchise is a great way for the right franchisee to build a future and have lots of fun at the same time,”
adds co-owner Valerie White. “We are
committed to providing fabulous start-up and ongoing support to every franchise
owner and are excited to bring the FLIPS experience to more flip flop devotees across the country.”
For more information visit: www.FlipsFranchise.com
Native Grill & Wings, an award winning Arizona restaurant chain known for its 20 wing flavors that guests can order by the individual wing, is ready to spread its wings across the country via franchising. Having primarily focused its expansion efforts over the past 35 years in Arizona, where all but two of the chain’s 31 restaurants are located, Native Grill & Wings has finally begun to aggressively break into emerging markets across the country. Company plans call for opening eight new restaurants in 2015 and having as many as 100 total locations nationwide by 2020. There are already 14 new restaurants in various stages of development throughout Arizona, Colorado, Idaho, Mississippi, Montana, South Dakota, Utah and Wyoming. “We’ve primarily followed the hub-andspoke model of expansion, conquering our local market first, expanding into nearby locales and regions, and finally expanding nationally,” said CEO Dan Chaon. “We’re incredibly proud of the recognition and iconic status we’ve received in our own backyard over the past three decades. Now, with a strong leadership team and a growing group of franchisees, we’re ready to receive the same recognition nationwide.” For more information visit: www.nativegrillandwings.com
DreamMaker Bath & Kitchen Remodeling Franchise The DreamMaker Bath & Kitchen remodeling franchise is on pace to finish 2014 with single-to-double-digit average franchisee revenue growth — a sales increase that comes on top of the 23 percent average it experienced in 2013. “Our sales pipelines are at a peak,” said DreamMaker Bath & Kitchen President Doug Dwyer. “More customers are looking to remodel their homes, and homeowners have bigger budgets for their remodeling projects. Based on the amount of inquiries franchisees are receiving from customers, we expect 2015 may be our biggest year ever.” DreamMaker is a nationwide remodeling franchise that provides its members with unique proprietary technologies and systems while coaching them in novel ways to build and improve their businesses. Remodeling magazine’s Big50 annual list of the best remodeling businesses routinely includes DreamMaker franchises. Patty Gray and her husband, Everett, owners of DreamMaker Bath & Kitchen of Bakersfield, California, can shed some light on how
the franchise has attained its leadership role in a cluttered and very competitive field.
“We receive excellent business coaching, and the company and
its members are continually looking at new ideas and improving
operating systems,” said Patty Gray, whose franchise was named to the Big50 list in 2014. “They have put us on the national map through their hard work and guidance.” For more information visit: www.dreammakerfranchise.com
Old Chicago Pizza & Taproom now open in Sioux City, Iowa through February 12 will be donated to the organization, which helps serve more than 100 local community charities with feeding programs to nourish the needy, the ill and children.
Old Chicago Pizza & Taproom, a national casual dining restaurant known for its delicious, handcrafted pizza and vast craft beer selection, announced it has opened its first location in Sioux City, Iowa at 5030 Sergeant Road.
The restaurant will create nearly 120 jobs for the area. To celebrate the opening in Sioux City, Old Chicago Pizza & Taproom has partnered with local charity, Food Bank of Siouxland. One dollar from every Chicago 7™ and Meat Me™ specialty pizza ordered after 3 p.m. this month
Old Chicago Pizza & Taproom offers an expansive menu ranging from shareable appetizers and fresh salads to taproom classics including hearty burgers and handcrafted pizzas. Since its inception, Old Chicago Pizza & Taproom has been committed to serving the highest quality pizza and craft beer the right way. Old Chicago Sioux City will feature a variety of regional and local craft beers from breweries such as Iowa’s own Millstream Brewing Company. The new 4,740-squarefoot restaurant, including patio dining, also features 13 HD televisions for prime sports viewing along with 36 beer taps pouring the finest brews. For more information visit: www.OldChicago.com
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cov er sto ry
Filta Env ironmental K itchen Solu tions
Horrific accident leads to
prosperous business venture Tragedy can be the impetus for amazing innovations to help avoid them in the future. And while it may not have reached tragedy level, a horrific kitchen accident birthed the unique business model of Filta Environmental Kitchen Solutions. What Filta does for commercial kitchens is offer a bevy of services that essentially take away quite possibly the least desirable job in the entire kitchen, Vice President of Franchise Development Adam Blake said during a recent interview from the franchise’s United States headquarters in Orlando, Florida. The business’ core service is FiltaFry, a fryer management and cooking oil filtration system. Basically, Filta comes
Franchising USA
into a kitchen and, using its own exclusive equipment, pumps the cooking oil out of the fryer into the self contained unit that will micro-filter the oil. While the oil is being filtered, the Filta technician will clean the fryer with a specially designed vacuuming system and then pump the oil back into the fryer. This saves the kitchen from having to designate one of its own employees from doing this highly dangerous work and it also saves the kitchen money in oil costs and wear and tear on the fryers. “We come in and we essentially take that job away from their staff,” Blake said. “We provide them with consistently cleaner fryers. Using our machine, we will microfilter their cooking oil. By micro-filtering their cooking oil and properly cleaning their fryers, we will extend the useful life of their oil.” And, not only does the service save the kitchen money, it also provides a more consistent fried food product, and helps the kitchen be more environmentally friendly, not to mention safer.
The accident Founded in 1996 in the United Kingdom, Filta Environmental is the brainchild of Founder and President, Jason Sayers. In the early 90’s, Sayers had a friend who was employed part-time in a fish and chips shop. Tasked with cleaning the fryer and changing out the oil, Sayers’ friend was badly burned by the hot oil. The accident stemmed from the traditional method of cleaning a fryer, which Blake said could easily be featured on an episode of the Discovery Channel’s “Dirty Jobs” with Mike Rowe. Traditionally, he explained, fryers would be drained from the bottom through a valve. But, because they were draining through the bottom, the drain would inevitably get clogged with pieces of food debris. The only way to unclog the drain was to take a piece of metal and poke it into the valve to try and dislodge the debris. It was while doing this that Sayers’ friend was burned and Sayers came up with the idea of pumping the oil out from the top instead. While the equipment was
“Not only does the service save the kitchen money, it also provides a more consistent fried food product, and helps the kitchen be more environmentally friendly, not to mention safer.”
Franchising Process & Support Once a potential franchisee submits a request, they will go through a series of calls and discussions, culminating in an in-person discovery day where they will get to meet the support staff and see live demonstrations of the service. During this process, both parties must agree that it’s a good fit for all involved in order to move onto the next step. There is never any pressure for a potential franchisee to come on board, and franchisees are not asked to purchase a franchise at discovery day, Blake said. If an entrepreneur does decide to go all the way and is awarded a franchise, they are given comprehensive training on the equipment and on running the business, plus they are privy to a robust support system. Part of this support system includes an inside sales team that helps them drum up business by making preliminary phone calls to the franchisees’ most coveted potential clients. These phone calls are to pique client interest and set up meetings with the franchisee.
being developed, filtration technology was added. Sayers teamed up with Victor Clewes, the now-CEO of Filta and through an investigation of how fryers and cooking oil were dealt with, they discovered that there was not only a need for oil filtration, but there was a need for proper fryer management training and the service, and thus the company was born.
Multiple Services What makes the business an especially lucrative opportunity for franchisees, Blake said, is the fact that they see their customers on average about one to two times per week. Seeing customers that frequently opens the door for franchisees to offer complementary services that maximize their revenue per customer. One of those other services is disposing of the old oil, once it can no longer be used for cooking. Most kitchens will have a dirty, smelly used cooking oil bin sitting out back, Blake said. But, Filta is capable of taking that used oil away at the conclusion of every service, saving the kitchen from having one of these smelly
bins on site. This is an especially attractive feature for Filta customers. The franchisee takes the old oil, puts it through a semipurification process and then sells it for top dollar as another stream of revenue.
Environmental Impact The whole Filta system is environmentally friendly and clients can even see how much of an impact they are having on the environment thanks to the business’ Environmental Impact Report, which quantifies for the clients how much they’re helping the environment. For every gallon of oil that the kitchen is able to reuse rather than discard, the report shows them how much of an impact they are having by equating that with a number of trees being planted. So, for example, not discarding X number of gallons of oil, means the equivalent of planting X number of trees. When companies use a green service, Blake said, they want to know exactly how it’s sustainable. Having a report to provide to them is looked upon favorably by clients.
Filta Environmental also keeps in close contact with franchisees to help them develop their business. As Blake said, the company doesn’t want its franchisees to be the ones doing the actual fryer cleaning, they want their franchisees to be running and growing the business while their employees do the actual cleaning. “Filta is not interested in selling a franchise owner a “job.” We are interested in proceeding with those that want to build and develop a successful business,” Blake said. Having started franchising in the US in 2003, Filta Environmental is currently operating in 41 states and 27 countries around the world. The company has 750 territories in the US of which 250-300 are occupied, leaving plenty of opportunities available all over the country, Blake said. With continual growth, Filta Environmental is well on its way to eliminating one of the most dangerous and dirty jobs one can find in commercial kitchens, and helping entrepreneurs open their own business along the way. For more information visit: www.gofilta.com
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pro fi l e Jimmy Britz was serving in the US military in Hamburg, West Germany during the cold war. After retiring from the army, he moved to Quebec, Canada, where he moonlighted as a DJ. He found something else though as well. He found a new favorite food, and it ended up being a food which would change his life forever. Poutine. Poutine is a simple dish, the base being French fries covered in brown gravy and cheese curds. Of course, there are many places in Canada to get the dish, and each one puts their own spin on it. Jimmy had it and fell in love, and found himself shocked that the dish wasn’t more popular in America. In fact, he had never even come across it before. For that matter, he had never had it in his time in Germany either, but that was more forgivable, considering it didn’t border Canada. Upon returning to America, Jimmy set up shop in New Orleans, both figuratively and literally. He decided to open his own restaurant in which the people of New Orleans could come and enjoy great food. And that was going to be his focus, great food. He wanted to make great dishes, and he wanted to use great ingredients. He wanted everything to be fresh, made to order, and he knew he needed
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a signature dish. Every great restaurant has one, something that the locals will come to love, something that everyone will know you had to go to Jimmy’s to get it. And it didn’t take long for Jimmy to realize what his signature dish was going to be. Poutine. Of course, it had to be the dish so beloved in America’s neighbors to the north, and so unknown in the U.S. Poutine was the answer, and it became a massive hit. Jimmy’s place was popular, a nice and easy fries type of joint, with delicious shakes to go with it all. But the poutine, that was out of this world, it was so new, and so delicious, and Jimmy made pounds of it each day. Soon Jimmy was popular enough to open a new place. And soon after that, another. He kept going, kept opening restaurants, across multiple states, and each one became a bigger hit with the locals than the last. And the one thing that kept them coming back, over all us, was the poutine, the signature dish at all of Jimmy’s restaurants. With his eye on tomorrow, Jimmy plans on continuing to expand his franchise, and open more restaurants, in more diverse locations. He hopes everyone can come in and try a poutine and a shake. Jimmy’s have recently signed a multimillion franchising deal with a master franchisor in Dubai, United Arab Emirates. That franchisor is expected to expand Jimmy’s Fries & Shakes throughout that region. Franchising queries: franchising@jimmysfries.com General queries : info@jimmysfries.com www.jimmysfries.com
Empower your Future Franchising queries: franchising@jimmysfries.com
www.jimmysfries.com
General queries: info@jimmysfries.com
focus
Fra nchise Fou ndr y
Franchise Foundry Propels Entrepreneurs, Startups and Small Businesses Texas-based Franchise Foundry is quickly becoming a powerful force within the franchise and small business communities.
CEO Paul Segreto
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With 10 brands under management in just under 12 months since being acquired, Foundry is not only making a name for itself but for a host of up-and-coming franchises as well. CEO Paul Segreto acquired Foundry after an earlier merger with his company, FranchisEssentials and is spearheading the recent efforts by tapping into his 32 years of experience building brands both on the corporate side as well as a consultant.
“Franchise Foundry is a business accelerator that works exclusively within the franchising industry. It works with startup and emerging brands and takes them from concept to a fullblown franchise network.� Segreto explained during a recent interview with FranchisingUSA. Segreto stressed that he won’t take all of the credit for the recent success of his company, having put most of the focus on his executive team and recent national partnerships. In just the past 3 months, Foundry has been able to partner with an additional 10 companies that are poised to support its future franchise portfolio. The partnerships mainly stem from digital marketing, commercial real estate, web technology and legal services. Segreto explained that these newly formed
partnerships are essential to establishing a solid foundation for the future of Foundry. “I am proud to serve alongside such remarkable talent in this industry. The contributions of our select partners and our motivated team along with a diverse portfolio of exclusive brands have really helped us to start 2015 on the right foot!” says Segreto. Segreto is not only walking the walk but in just 2014 alone, he received a number of accolades. Most notably, he was recognized as a Top 100 Champion Small Business Influencer in October by Small Business Trends. In December, Segreto was named to the Advisory Board at Manalto Inc., a social media management solution provider. His personal connections, domestic and international and across a wide range of industry sectors give him an advantage in brokering deals with qualified candidates from all walks of life. Most of his recent success can be due to his powerful influence on social media, having hosted nearly 225 interviews on his aptly named podcast show ‘Franchise Today’. With Franchise Today, Segreto has literally talked the talk for over 5 years.
Selection Process One thing learned from Segreto about his company is that not every small business or startup can become a franchise and his team is responsible to vet out only those businesses that are most qualified through a meticulous selection process. “Think of it as the Navy SEAL boot camp for business owners and entrepreneurs. This is the time where we separate the men from the boys and decide who we really want to work with. Just like boot camp, being in shape physically is not the same as being
in shape mentally. On the other hand, just because you’re a profitable business does not mean that you are right fit for franchising.” said Segreto. As part of this process, when a business owner approaches Foundry wanting to become a franchisor, the company will first put together a feasibility study. The purpose of this study is to analyze how the potential franchise would compare across its relative market segment. Concurrently, they will evaluate the owner themselves and see how their qualities match against a set of benchmarks required. If both the owner and business has potential to be a franchise, they will then move onto the development stage.
Development & Support The first thing that Foundry aims to do with their clients developmentally is foster its culture to growth strategy, meaning the company wants to instill a positive culture in their client companies that focuses on the growth of the brand and each franchisee. In doing so, Foundry delivers a complete brand audit to its client early on in the development stage. This audit compares the brand across several digital benchmarks and helps to expand the client’s own perspective through a unique 4-step process. This past year, Foundry co-founded and launched Accelerated Digital Strategies. Foundry created ADS to enhance a brand’s positioning digitally and ensure strong visibility from a franchise candidate’s perspective to foster lead generation. “We position them with a unique, differentiating consumer proposition and strong emphasis on community-building
to make sure they stand out in a very competitive environment,” Segreto said. Franchisors can face tough obstacles when trying to launch a franchise themselves, so Franchise Foundry will help them develop their business plan and walk with them every step of the way to ensure they get a fair shot. “The franchising industry needs business accelerators like Franchise Foundry because there simply is no such thing as franchisor training.” Segreto said. So, his company steps in to fill that void to help business owners become ideal franchisors. At times, to ensure success, the best option can be altering a business plan. Foundry recently worked with a company in the fitness industry, MaxOut Strength Studio to help it devise a unique differentiator geared toward teens and young adults with such focus to help them to foster growth both mentally and physically, unlike many fitness industry models. The metamorphosis took about 14 months, but the company now has a consumer proposition that is different enough to set it apart from every fitness franchise in the country. The ultimate goal is for Foundry to provide value by marketing the brands through various channels organically so that they are not reliant on paying hefty “lead generation” fees charged by some franchise marketing firms. By cutting out the middle man, Foundry has empowered its clients to support themselves, ultimately enhancing revenue generation and re-investing those funds back into the business itself. For more information visit: www.FranchiseFoundry.com
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spot l igh t o n serv ice
Loyalt y G enerator
LoyaltyGenerator’s Automated Marketing Allows Franchises to Focus on Business with ‘Set It & Forget It’ Mentality Franchising is to business processes what LoyaltyGenerator wants to be to small business marketing. During a recent interview, LoyaltyGenerator’s CEO Bryce Ebeling explained franchises have a complete system in place for making a business successful. If franchisees stay within that system and use it the way it was designed, they can increase their probability for success.
Franchising USA
Applying that logic to LoyaltyGenerator, the CEO added, if franchisors and franchisees use LG’s marketing SaaS platform the way it’s designed, they can increase their probability of retaining customers, increasing their frequency of visits and increasing their average spend which also increases the probability of their success. The best part? LoyaltyGenerator is completely automated. Franchises can use the marketing platform to ensure brand integrity and consistency of customer communications across the entire brand. It can also help grow
measurable and quantifiable revenues for franchisees. Essentially, LoyaltyGenerator allows franchisors to affect the customer experience outside of the individual franchisee businesses. “Franchisors are great at saying, ‘Hey, this is what you’re supposed to do,’ but whether franchisees do it or not is a whole other story,” Ebeling said. “But most franchisors don’t have any way to affect that customer experience except for when they’re within the confines of the franchisee’s business and that only pertains if the franchisee does what the franchisor wants them to do and what they’ve been trained to do.”
How it Works LoyaltyGenerator starts by tying into the franchise’s point of sales system and gathers the data the franchisee has on its customers. LoyaltyGenerator can also tap into companies’ financial data and inventory control -- basically any system that will allow LG to affect a better customer experience. The platform is then programmed to automatically send specified messages at appropriate times and track those messages to make sure they are seen by the recipient. Sending the right message at the right time to the right customer with the right media is what LoyaltyGenerator strives to do. Ebeling explained how LoyaltyGenerator could be used by a pizza franchise. If the franchise has a delivery guarantee of 45 minutes but an order doesn’t get delivered in time, franchisors usually wouldn’t have the recourse to do anything in this situation. In fact, they probably wouldn’t know about it. But with LoyaltyGenerator, an order can be tracked and the platform can be programmed to send a message to the customer if the order time goes beyond a 10% variance of the guarantee. The message could be something along the lines of an email or text that says, “Sorry, we’re extremely busy tonight and we’re running a bit behind. Please accept this coupon for 20% off your next order as a token of appreciation for your patience.” The message would be sent out automatically, without anyone having to prompt the system. If the time variance goes up to 25%, an alternative message could be sent out with a coupon for a free pizza and a trackable activity item for the general manager to call the customer to apologize and advise them to check their email inbox.
While LoyaltyGenerator will take care of the entire implementation for a franchisor and their franchisees, most franchise companies choose to write their own touch point messages and create their own graphics -- Once all the various messages have been created and uploaded into the system, LoyaltyGenerator does everything. Unlike any other solution on the market, LoyaltyGenerator cares more about the message being received by the intended recipient than simply being sent. For example, an email will always be sent if one exists; however, if an email goes unopened, LoyaltyGenerator will automatically cascade a follow-on SMS or postcard to ensure the message is received by the intended target. Ebeling shared another example regarding survey responses. If a customer fills out a survey, an automatic thank you would be sent; as it should be. However, most small companies don’t make a habit of responding to positive feedback. Their system can be programmed to delay an automated thank you message for a few days while also queuing a call for the general manager or franchisee after the email would have been sent. Like many other systems, negative survey responses can also be escalated as necessary and required. Franchisors can use these insights to easily identify locations positively or negatively impacting the brand while franchisees can use these insights to identify underperforming or over achieving staff members.
Best of all, the caller id is always the phone number of the local store. As Ebeling pointed out, the whole system is geared toward “Just Set It and ForgetIt” automation. While LoyaltyGenerator easily and automatically manages the customer experience and messaging, the franchisors and franchisees do what they do best; run their businesses. “We take care of everything,” Ebeling said. Franchisees receive regular reports to track the return on investment they’re getting from LoyaltyGenerator.
Focus on Franchises Ebeling said he decided to focus on franchises with LoyaltyGenerator because he has 20 years of experience working within the franchise industry with Sir Speedy and Money Mailer. Plus, he was also a Money Mailer franchisee, which is what inspired him to create LoyaltyGenerator, in operation since 2010. With an automated system like LoyaltyGenerator in place, both franchisors and franchisees can set it up and concentrate on running their business, knowing that the system is keeping in touch with their customers and helping to generate that coveted loyalty. For More information visit: www.loygen.com
LoyaltyGenerator can even add a human element to the mix because it has its own call centers that can dial a customer on management’s behalf and give them a message from a specified person with a custom script for that specific touch point.. For example, the agent could call a customer with the following message, “I’m calling on behalf of our general manager because you filled out a survey for us five days ago. We appreciate your feedback. Please check your email as our manager has sent you a token of our appreciation.”
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ex per t advice
Lynne Shelton, Senior Partner, Shelton & Power
Which Franchise to Buy
When Financial Numbers Lead and When They Lie
Part 1 in a 3 Part Series All Financial reports will give Franchisee’s insight into solid Brands to buy into - or will they?
As Franchise Attorneys, Certified Franchise Executives, and Franchise Strategists, we are constantly asked in our education seminars about which are the “good franchise systems to join”. We commonly point them to several customized gauges, as each person’s review is different, but one indicator that most Franchisee prospects receive from us in our opinion letters is the financial indicators. Franchisees who are inquiring and analyzing prospective franchise systems can sometimes take hints from the financial world’s lenders in determining which franchise systems are more secure to join. One of the lending giants is the Small Business Administration (SBA).
The Financial Lead SBA-backed loans remain one of the most popular ways of obtaining financing for franchisees. Through the SBA, borrowers can obtain SBA 7(a) loans that are guaranteed by the U.S. government, which by far are the SBA’s most popular loan program. It was set up in the mid - 1900’s to help borrowers, who couldn’t qualify for traditional loans, obtain funding to start or expand franchises and other small businesses. On September 10th 2014, the Wall Street Journal (“The Journal”) had a story about the franchise systems with the highest default rates for Small Business Administration-backed loans over the past decade. The Journal limited its analysis to chains whose franchisees took out a total of 100 or more SBA 7(a) loans from 2004 through 2013. To give some perspective to these numbers, the Federal Reserve reported an overall charge off rate on loans in all industries of only ½% in the first quarter of 2014. As reflected in The Journal report, the SBA guaranteed nearly $2 billion in 7(a) loans for franchisees, in the fiscal year ending September 30, 2013. Overall, 13% of all SBA 7(a) loans to franchisees were charged off, based on The Journal’s analysis of the data from 2004 through 2013.
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Franchising USA
ex per t advice
Lynne Shelton, Senior Partner, Shelton & Power
The Journal reports that the 10 brands that make up the list of franchises with the highest default rates represent a total of $121 million in total defaults from 2004 through 2013. The default rates for the top ten brands are reflected in chart 1.
Chart 1
The total amount of the $121 million in total defaults from 2004 through 2013 spreads out amongst the top ten defaulting brands pretty evenly except for the top two defaulting brands. Quiznos and Cold Stone Creamery’s default rates are far above the rest, as you can see in chart 2. The Journal reports that franchisees of Quiznos, Cold Stone Creamery, Planet Beach Franchising, and Huntington Learning Centers were among the “bottom 10” brands with the highest rates of defaults (“more than double the rate for SBA borrowers who invested in all other chains”) during the period from 2004 through 2013. And the top “bottom 10” brands with the highest default rates are Aamco Transmissions, Curves International, Cici’s Pizza, Minuteman Press, Sylvan Learning, and Cartridge World. Did you catch the reporting period this covers? Yes, 2004 through 2013 when five of those years saw almost every industry in our country in a financial decline. There were governmental subsidies, layoffs galore and Americans were reintroduced to company encouraged “early retirement options”. Therefore it should not shock anyone that many of the fastest growing franchise systems in the country during the same time period would have high loan default rates. Franchise Brands With Higher-Than-Average Default Rates. Last confirmed October 20, 2014. Found online at: http:// online.wsj.com/articles/some-franchise-brands-have-higherthan-average-default-rates-1410392545.
1
Overall Federal Reserve Loan Charge offs. Last confirmed October 20, 20914http://www.federalreserve.gov/releases/ chargeoff/chgallsa.htm
2
Discussions with Al Wells. Retired GE Aviation employee. March 10, 2012.
3
Ms. Shelton in a previous life was a franchisor of a large franchise system, and is currently a Senior Partner at Shelton & Power franchise law firm. Shelton & Power Attorneys have 25+ years’ of business consulting, franchise and trademark experience.
Franchising USA
Chart 2
Our knowledge facilitates an understanding of a large variety of businesses, services and technologies. We help businesses protect their brands through Trademark, Copyright, and Business contractual transactions. These services allow us to “Expand their Brand” through Franchising. For existing Franchisors, we provide full outsourced in house counsel. Shelton & Power additionally works with entrepreneurs buying franchises by assisting with Business Creation, Industry Evaluations, Franchise Disclosure Document Review, Fairness Factors, Opinion Letters and Negotiations.
Lynne Shelton
For more information or to schedule a customized consultation for your business you can write to franchising@sheltonpower.com or call (866) 99-FRANCHISE.
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Featu re
Business Servic It takes more than a good idea to run a company. In fact, most businesses depend on the services of other industries to remain successful and uphold daily operations. All franchises aren’t slotted into the same category; there are multiple choices and each adhere to different owners. Business service franchises are one of the main options for those interested in the field. A solid relationship between
a franchisor providing business to a well-branded company can help gain future clients through recommendation or reference.
In this country, business will always
A franchisor of a service industry can gain more credibility by being associated with a well-known client.
avenues and businesses are interdependent
A company may remain dedicated to a specific business service and establish that service at the same company in other locations.
exist and whether the economy is stable or fragile, business will need servicing.
Everyone isn’t trained and rounded in all on one another.
There are numerous types of businesses that improve the quality of other
companies and they serve the industry in a variety of ways including advertising, financial services, shipping services,
training and coaching, to name a few. A closer look at some of these business service industries will give a better
perspective to potential investors and those interested in this field of franchising.
Franchising USA
e r u t a ces Fe Financial Services
According to the U.S. Census 2007 Economic Census, there are approximately 986 financial and insurance franchises within the country. This type of franchise is responsible for a company’s financial services. From payroll, to consulting to tax preparation there is a lot involved with the management of money. The bigger a company becomes and the more money they make, the more necessary it is to have professionals prepare and organize all financial services. This type of business helps other industries be as profitable as possible and avoid financial loss wherever applicable. . Tax preparation can help companies retain more money or pay in less, depending on the situation and prepare a company properly without using the client’s labour to perform such tasks. It is in the interest of companies to hire an accounting franchise to cover these tasks especially if they are not trained with
“Companies need support in order to remain successful and small businesses are not well-versed in all industries and find it more accommodating to source out support.” accounting themselves. More accounting franchises will prefer or require franchisees who have a background in financial training.
Marketing and advertising With the constant evolvement of social media, there are numerous ways for companies to reach clients and customers. Social media appeals to a large portion of the population. Social networks have to be updated repeatedly in order to reach clientele and it is a field that is constantly evolving. 7.93 per cent of marketers use social media for business and though this number seems low, it’s a small portion of what marketing franchises may be expected to do while servicing another business.
and marketing companies help other businesses be well presented to their customers through a variety of venues. These marketing ads must be more appealing than competitors and also relate to a varied and large audience.
Shipping Services Again the internet plays a huge role in the growing demand for shipping services. Companies are reaching wider audiences through the web and clients who have never even stepped through their door want to purchase or invest in their company. All businesses dealing with goods need to ship product to their stores from manufacturers or to customers near and far.
With ever growing technology, it’s inevitable that marketing will always be an important part of the business and though founders of companies are well versed in their field, they usually need marketing support.
Supplies are usually purchased from an outside source and have to be shipped to higher end companies.
Marketers and advertisers main goal is to increase sales potential for clients, develop product knowledge, create a brand and reach as many customers as possible, while retaining existing ones.
UPS and Fedex are well-established shipping companies with franchise opportunities. These are companies with households names that provide a brand to investors that has already been established, plus they service businesses locally and internationally.
Customers have more choices now with internet shopping and browsing
Most business have a need for shipping whether it be day-to-day or annually, from small to big business.
Franchising USA
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Featu re
“With the constant evolvement of social media, there are numerous ways for companies to reach clients and customers.” keep it easily accessible. The fastest growing demographic on Twitter is the 55-64 year age bracket proving that is reaching a variety of audiences throughout the world. It’ important for businesses to be accessible to everyone in all venues. According to the 2008 U.S. Census small business amounts to 99 per cent of businesses, proving a need for assistance and service from other businesses. Companies need support in order to remain successful and small businesses are not well-versed in all industries and find it more accommodating to source out support, rather than create a department within their company.
UPS reportedly delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories worldwide.
Training, Coaching and Consultation Everyone needs a helping hand once and awhile, companies are not given a book of instructions on how to become successful but there are franchises that provide that training to other industries. Coaches work with companies to help businesses become successful and teach employees behavioral changes to maintain permanent skills that will make the company profitable. Some business coaching remains focused on a certain aspect of training, like human resources or marketing, for example. Businesses can focus on their faults and request expert consultation to improve that area. This type of franchise may require a franchisee who has experience or strength in a specific field.
Franchising USA
While other businesses remain focused on a mindset change and helping companies on a whole. They seek success that will remain consistent for companies and it’s usually a longer process compared to consultations.
Technical services Every company should use the internet in some capacity but it’s still a learning process for many owners and franchisors. Technical support through one main provider can help eliminate frustration for companies while creating better opportunities, accessibility to a wider range of customers and while technology advances, this type of service can help other companies remain up to date and well informed. A constant support in this field would insure companies advance with their customers. Marketers would use social media to expose a company, but a business may either need support to keep the social media sites up and running, or support to
The interdependence between businesses will always exist within the American economy, making the service industry an evolving and constant necessity to a business’ success.
About the author: After receiving an English Degree, followed by a Journalism Diploma, Gina became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
Look out for our next special feature:
Health & Beauty Franchising
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Focus
S tratus B uilding Solu tions
New Stratus Building So track to regain franch
“Our goal is to reintroduce Stratus and put it the map and restart growing the co New CEO,
Stratus Building Solutions, a Commercial Cleaning Franchise company, got its start by two business partners in St. Louis, new CEO, Afshin Cangarlu, explained during a recent interview from the company’s current headquarters in Los Angeles. The original two founders brought their experience and innovation together which enabled Stratus to grow exponentially and win awards such as the annual 2010 & 2011 Inc. 500|5000 Fastest Growing Companies, three Top Ten spots on Entrepreneur’s Franchise 500 – including 2nd time #1 Fastest Growing Franchise, Franchise Times Fast 55, and many others. However, that momentum came to a quick stop at the end of 2011 and the beginning of 2012, as a series of unfortunate events, including some class action lawsuits, threatened to derail the operation.
Stratus’ New Chapter Cangarlu started with his business partner, Foad Rekabi, in 2008 as a master franchisee for Stratus. The two successfully grew that business within
Franchising USA
their region of Los Angeles. At the same time as they were doing that, another master franchisee, Channen Smith, in Denver started acquiring additional territories within the franchise, including places like San Diego, Phoenix and Omaha. Cangarlu and Rekabi along with Smith got together and decided to approach the then-owners about acquiring the company. That acquisition just finalized at the end of January and the future looks bright for the once prominent business. “Our goal is to reintroduce Stratus and put it back on the map and restart growing the company,” Cangarlu said. “We want to give it a fresh start with new management and commitment for growth.”
Back to Growth Stratus’ organization is somewhat unique for a franchise. The company has master franchisees who operate within their licensed territories and act as franchisors themselves within those territories, by providing sales, marketing, training and managing the individual unit franchisees who, rather than having territories, work on an accounts provided to them. Currently, the company has around 2,500 unit franchisees spread all throughout the United States in over 25 major cities. The company is looking both for master franchisees to cover specific territories, such as in Chicago or Seattle, but it is also
looking for unit franchisees throughout all active territories. It has unit franchise opportunities available everywhere. A typical unit franchise candidate at Stratus would be an individual wishing to go into business for themselves and becoming their own boss. It is a perfect fit for anyone looking to run a successful business while having the support of an established corporate model. This type of enthusiastic, but inexperienced candidate would benefit from Stratus’ comprehensive support. Stratus offers its owner operated franchisee the opportunity to begin their business with an initial investment as low as $2,000 with a client base, by shortening the typical start-up time. Each regional master territory offers new candidates the opportunity to provide service to Stratus customers. With various programs available Stratus allows its franchisees the option of starting their home-based business on a full or part-time basis. Stratus provides sales and marketing support, business development and customer service coaching, administrative support that includes billing and collection for their customer accounts, and finally latest industry and technology offerings. Once the franchisee is ready to start work, they will get their customer accounts with the appropriate legal contracts in place. They even provide the required insurance a franchisee needs to deliver their services. Essentially, the company acts like the
olutions owners on hise’s former glory
back on ompany.” Afshin Cangarlu.
franchisees’ management arm where the franchisees main focus becomes providing the high quality cleaning services. Unit franchisees are always associated with a particular regional office where customer accounts are provided to them near their homes. One other aspect that makes becoming a Stratus unit franchisee a lucrative proposition, Cangarlu said, the commercial cleaning industry has been labeled by some economists as recession proof business. The commercial cleaning franchise industry will always find buildings, offices, clinics, schools and many more businesses that has to be cleaned. Building managers or business owners must conform to cleaning standards and regulations. Most of these businesses, if not all, outsource their commercial cleaning to make sure that their business stays clean and healthy. The commercial cleaning industry will continue to be one of the fastest growing segments of the economy for the next several years, reaching well over $100 billion in revenues.
Becoming a Franchisee The starting point for becoming a Stratus unit franchisee is having a meeting at the local regional office and work through a mutual exploration to determine if Stratus will provide what a prospect franchisee is looking to accomplish. With multiple available plans Stratus is able to help their franchisees in building a lucrative business that even allows for future growth. At the end of the discovery process if they are deemed a good fit, then the prospect is given the necessary documents and disclosures, with ample to time to review and decide if this is the right business for them. Upon becoming a unit franchisee, the regional office will set up training, which consists of various different sessions, some of which is classroom based, and some of which is hands on. “At the end of the training, our franchisees become certified and that’s when we begin assigning them their own customer accounts to service,” Cangarlu explained. What separates Stratus from its competitors, the CEO said, is the
company’s focus on not only cleanliness, but on being environmentally friendly, too. As a green commercial cleaning company Stratus is committed to maintaining the environmental leadership by using their own Stratus Green cleaning products and processes. Biodegradable chemicals and materials deliver high quality cleaning results without the health risks associated with janitorial cleaning products. Stratus brand green cleaning products are for exclusive use by their unit franchisees, who receive specific training in how to use them. Stratus strongly believes that “Cleaning for Health” with their specific green cleaning services makes good business sense. Additionally he added, our industry leading quality control and support teams provide extensive janitorial experience to back our franchisees. Customer satisfaction with stratus is extremely high and customer turnover is extremely low, he added. With new owners in place and an eye to the future, Stratus Building Solutions is set to regain their former glory. www.stratusclean.com
Franchising USA
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B est Fra nchises, LLC
Franchise consultant guides entrepreneurs
through the franchising maze With over 2,800 franchising opportunities in the United States, choosing the right one goes far beyond daunting and strays into nearly impossible territory. That’s where Certified Franchise Consultant Christine DeMuth, comes into play. Affiliated with FranServe, DeMuth runs a full service consulting and development firm, Best Franchises, LLC
for entrepreneurs looking to open their own franchise. DeMuth has been a franchising consultant for the past 15 months and, through her affiliation with FranServ, she has access to a wealth of experience and contacts within the franchise industry. Although her office is in the northern Milwaukee suburb of Cedarburg, DeMuth helps entrepreneurs in all of the states except Washington, walking them through her proven consultation process. “I really love helping people. And my approach is very simple and straightforward,” DeMuth said during
a recent interview from her Cedarburg office. First, she conducts an interview with her client to gain insight into the client’s previous experience, their goals, their strengths, their weaknesses, their investment range and their target market. Then, she usually identifies three to four ideal franchises for the client and explains why she’s proposing those particular franchises. For the most part, her clients will select one or two of the recommended franchises and then she’ll help them perform the necessary research into those franchises. When her clients are ready to take a serious look at a franchise, she’ll facilitate the introduction with them to the franchisor. She’ll also sit on the sidelines and coach them through the process of becoming a franchisee. On the flip side of working with clients, is getting to know the franchise companies and their representatives and the type of people they are looking for. “You have to remember that franchises are not sold, they’re awarded,” DeMuth explained. “So, it’s really important for me to match the right skill set, experience and finance to the right franchisor and vice versa.” In the rare case where DeMuth finds herself in a situation that she’s not comfortable with, that’s where her
Franchising USA
“It’s really important to match the right skill set, experience and finance to the right franchisor and vice versa.”
affiliation with FranServe comes in handy, as she can call on the team of experts at FranServe to help her help her clients. Also helping her clients is the fact that DeMuth’s services are completely free to them. That’s also possible through her aforementioned affiliation. She gets paid by the 500 franchises that she’s affiliated with through FranServe, meaning clients don’t have to worry about consultation fees when they’re trying to make a major change in their life. One of the most common scenarios that DeMuth sees when she’s consulting is people who come in and automatically want to open one of the big-name restaurant franchises that they’re familiar with, even though they don’t have any restaurant experience and it may not fit with their goals. Many entrepreneurs don’t even realize how many different industries they have to choose from when looking at opening a franchise, the consultant said. It’s up to her to make sure they do realize they have a vast choice and to find a franchise that fits their skill sets and strengths. After 25 years in corporate America, DeMuth herself was looking to open a franchise and sought the help of a consultant. After going through the process, she realized that it was the consulting itself that fit her own skill set. Her background in the insurance industry working with people throughout the country gives her a distinct advantage for consulting she does now. With DeMuth’s help, her clients can easily find their way through the maze of those 2,800 mind-boggling franchising choices and easily reach their goals. For more information visit: www.bestfran4u.com
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ex per t advice
Al Palladino, President & Director of Operations, Rebounderz Franchise and Development.
Food for thought on franchising Owning your own business can be a rewarding experience, but it also comes with its own difficulties. Owning a franchise might be easier than starting your own business. With a franchise, there are established systems and a proven business model in place to assist you, the franchisee. This way, you face fewer risks than those involved with launching your own business from the ground up. Franchising USA
“Helping others, spending time with the family, flexible scheduling, greater earning potential – whatever your goals are, there is a franchise out there to match.” One of the most common types of franchise is in the food industry, and they’re popular for a reason – everybody needs to eat, right? However, the food industry may not always be the best route: Margins are tight and the cost of food is rising. You also have to consider that your food inventory can spoil and that the industry is rife with ever-evolving fads. It’s important to keep an open mind when choosing what kind of franchise is best for you. Here are some details about both the food-based franchise industry and other options for franchising that may fit your needs better.
Food-based franchises Food-based franchises range from dine-in to fast food, frozen yogurt to pizza and everything in between. According to FranchiseHelp.com there are more than 200,000 fast-food restaurant locations in the U.S. and that number continues to grow despite the health-focused culture we live in. Clearly, there is much success to be had within this industry.
Pitfalls of the food business Though many find success in the franchise food industry, the negatives sometimes outweigh the positives. Food franchises are at particular risk for loss of inventory. It’s simple fact: In the food and beverage industry, products and inventory spoil. This can be due to power outages, keeping the product for too long or contaminations like an infestation. Then, of course, there’s always theft, too. The food-based franchise industry also frequently faces fad trends. Two somewhat recent trends that come to mind include frozen yogurt and cupcake franchises. For years, it seemed as though a new location for these foods was popping up every week, but those fads have since cooled off dramatically.
Often, with a food-based franchise, the franchisee buys supplies from the franchisor. This can sometimes be a positive attribute, but may not work in every case. For example, grits are popular in the south but aren’t in the north. A fish sandwich can be a hot-selling item for some communities on Fridays in the spring, but maybe not where there isn’t a large Catholic population.
Beyond food There’s more to life than just food, and as a franchisee, you may benefit from veering away from the “traditional” franchise mold of food joints. With a new generation of readily available franchise concepts, investors should explore opportunities that pique their interests and match their lifestyles. There are many options available, including those that provide professional, consumer and entertainment services to millions of Americans – often without limits like inventory, cyclical demand and economic conditions. Helping others, spending time with the family, flexible scheduling, greater earning potential – whatever your goals are, there is a franchise out there to match. Below are three examples of franchises that are off the beaten path of food-driven business (with inventories that won’t spoil). Trampoline arenas: What better way for people to spend quality time with their families than to own a place where their kids and their friends want to hang out? The fast track to being the coolest person in the neighborhood may start with owning an indoor trampoline arena. According to the Association of Trampoline Parks, there are currently 340 indoor arenas with revenues exceeding approximately $680 million. This is a family-friendly, fun franchise option offering ground-floor opportunities. The best part: It’s not just entertainment, but a great workout, too.
Al Palladino
Insurance: On the professional services side, consider providing something else that everyone needs: insurance. Some insurance franchises offer their customers access to many more insurance carriers than independent insurance agencies. The best ones even offer their agents back office support, which allows for the agents to focus on and increase their sales potential. Pharmacies: There’s a rising trend in health-related franchise opportunities within the pharmacy industry. These franchises provide a consumer service that many people need: filling prescriptions. Providing your community with professional and convenient health advice, high-quality products, affordable medications and discounts for seniors and others can prove to be a rewarding business venture. Aspiring entrepreneurs face less risk when choosing to open franchise businesses, and the options for franchise types are nearly endless. Fully weigh those options and decide whether you want a franchise in the classic food-based industry or one that involves spoil-free inventory in the entertainment, professional services or health-related industries. Al Palladino is president and director of operations at Rebounderz Franchise and Development. He is a graduate of the University of Central Florida. Prior to co-founding Rebounderz, Al worked at AT&T. He created all the proprietary software that Rebounderz units use.
Franchising USA
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Veterans in Franchising www.franchisingusamagazine.com
Better Deal Printing Providing Opportunites for Veterans
VBS Pledges
Franchising Profits Why Franchising
is good for Veterans Franchising USA
feature
Page 33
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V eterans in F ranchisin g S u pplement febr u ary 2 0 1 5 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
News & Expert Advice
36 Better Deal Printing New Franchise Opportunities
38 Networking Your Way to Your Customers Darcella K. Craven, Veterans Business Resource
Focus 40 Win Home Inspections
Center
42 VBS Pledges Franchising Profits to Rebuild the Veterans Corporation Jim Mingey, Veterans Business Servcies 44 Veterans In Franchising Brandon Moxam, US Lawns
Franchising USA
V e t er ans in Fr anchising
C over S tor y - BETTER DE A L PR I N T I NG
Providing
New Franchise Opportunities for Veterans
adequate opportunity in the workplace, which provides them an excellent opportunity to start their own business. For franchise businesses, veterans hold skill sets that are critical to their operations; skills such as leadership, integrity, commitment and risk tolerance, all learned through military service.
Lawrence Curell
Service, sacrifice, dedication and honor are ingrained in the heart and soul of every military service member. From their first day in military training until the day they leave the military to pursue a civilian career, members of the military understand what it takes to succeed, persevere and serve others. Veterans retain highly valued skills such as leadership, management and attention to detail learned from their military service. They want to succeed but sometimes lack
Franchising USA
There are generous opportunities that franchise businesses provide both individually and through the IFA’s VetFran program that provide veterans the opportunity to own their own business through franchising. While the different franchise businesses offer a plethora of choices through the VetFran program, it all boils down to one thing; franchise businesses see the value of veterans’ skillsets and want them in their systems, which provides excellent opportunities for veterans as well as the franchise businesses. Having participated in the Department of Veteran’s Affairs vocational rehabilitation self-employment program, Lawrence Curell, a service disabled veteran and CEO of Better Deal Printing, LLC knows firsthand how difficult it can be. “I started as a one person operation in 2001 and grew the company to where we are today by treating our customers and employees as I treat my family, taking
care of them and following through on the commitments I make to them. Over 80% of our employees are military veterans. A staff that delivers excellence, value and quality products combined with the support of multiple franchisors that have chosen Better Deal Printing, LLC as a supplier, we have been able to consistently grow to serve all 50 states and international clients in 16 countries on 4 continents.” Better Deal Printing, LLC was started in 2001 to provide high quality, low cost printing and graphic design services to local clients. In 2009 the company headquarters was moved to Prescott, Arizona. In 2011, a large format and signage division was added to better serve clients and fill additional market needs. In 2013, an apparel and promotional products division was also added to establish a foothold in the growing promotional product and branded clothing industry. In 2014, a sourcing and fulfillment division was added to source unique, cutting edge products for clients. The company has earned numerous local awards, been featured in Vetrepreneur™ magazine, Franchising World Magazine and won the Diversity Inc’s “Top 500” U.S. privately held companies title in 2013. Additionally, Better Deal Printing
“Members of the military understand what it takes to succeed, persevere and serve others.” was nominated for the national Golden Ink award for service, value and quality in 2014. Because of the support Better Deal Printing has received from the franchise community and seeing another opportunity to help veterans and continue growth, in March of 2014, Better Deal Printing engaged a trusted partner, RBZ, LLP’s Franchise Services Group to begin the franchise consulting process, ultimately launching franchise sales in 36 U.S. states starting in January of 2015. With our own production equipment and being able to print anything from paper products, banners, signs, promotional products and corporate apparel to providing branded e-commerce web portals for franchisors, Better Deal Printing continues to grow annually by triple digits. When discussing some of the keys to Better Deal Printing’s success in the printing industry, the Better Deal Printing team follows a few crucial principles: • Treat our customers like family. Take care of their needs and deliver integrity. • Treat our staff with respect and empower them to make decisions. • Always follow through with the customer. Under promise and over deliver.
• Give back and support our communities through our philanthropic efforts. • Deliver Service, Value and Quality in everything we do. • Create a culture where employees and clients are working together to form creative solutions to their branding, marketing and printing needs. Better Deal Printing is offering low entry cost franchise opportunities that will allow veterans and disabled veterans the opportunity to put their hard earned military skills to use in their own Better Deal Printing franchise. Whether the franchisee wants to work from home or have a traditional brick and mortar location to work from, they know they will receive the support, commitment and assistance that they need to successfully grow their franchise, while allowing them the opportunity to maintain a work life balance. Understanding how critical deadlines are and the importance of impeccable service, excellent value and high quality workmanship, veterans get the job done for their clients. With the right franchisees, given the right opportunity at the right time, it’s a perfect recipe for success. The U.S. census data from 2007 (the latest
available) shows that over 9% of U.S. businesses, a total of 2.4 million were owned by veterans. These businesses generated $1.2 trillion and employ 5.8 million people. Realizing this, the franchise community has responded by growing the VetFran program and every single day additional franchise businesses join the initiative to provide opportunities for veterans. With franchise businesses being an integral part of the United States economy and growing opportunities for veterans through the support of the federal government’s initiatives and the franchise community, the positive impact that franchise businesses have on America’s wounded warriors is significant both to the business community and the veteran. Becoming a franchise business that provides opportunities for veterans is not only socially responsible in giving back to those who served but it is also a true win – win for everyone involved. The Better Deal Printing family is proud that we are able to begin offering franchise opportunities to qualified veterans. For more information visit: www.betterdealprinting.com or Call us on 928-445-8363
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V e t er ans in Fr anchising
Darcella. K. Craven, Executive Director, Veterans Business Resource Center
Working “On� Your Business Series:
Networking Your Way To Your Customers Many clients who purchase a franchise make the same mistake that many small business owners do. Assuming that because you have hung your shingle customers will know to come in the doors. Franchising USA
You will need to get out there and invite them in. Sometimes, that means networking with
many people in order to get your customer to come in. When it comes to networking many small business owners believe it is just a matter of showing up at a chamber meeting, shaking hands and waiting for the follow up. No, networking is not so simple. You must dedicate time and energy to meet potential clients and build a report with the community to gain information that will help you grow your business. Here
are some helpful tips to assist you in
becoming a networking guru which will help you attract the right customers and
build a team of community cheerleaders to help you.
Pay Attention to the News The next time you hear a story in the
news that a leader in your field has won
an award, been appointed to a position or
made a positive impact in the community; send him/her a note of congratulations. Acknowledging the accomplishment gives you a perfect opportunity to
“You must dedicate time and energy to meet potential clients and build a report with the community.” introduce yourself and ask for advice or an appointment.
Join Professional Organizations Do not just attend local meetings but participate as well? You will find that this is one of the best ways to network with either people who can provide you leads and perhaps offer advice on how to improve your business. These organizations can also assist you in becoming a part of the community you are in which in turn helps you establish stronger community relationships.
Get involved with Seminars Many community colleges or professional organizations in your area provide free to low cost seminars in marketing, public speaking or other professional development topics. These seminars will give you new and interesting ways to organize run or promote your business. These types of activities also provide opportunities to meet and talk with other people like yourself and can keep you motivated. Check local business papers for information
Volunteer with a Purpose What is the point of sitting in your office avoiding the sales call or waiting for the customer to reach out? Staying in only serves to isolate you from your network and customer. While you are waiting for that perfect call, why not get out and volunteer at your favorite charity or someplace you have always wanted to work. Volunteering serves many purposes. 1) You can maintain and/or develop skills that will help you in your company, 2) You will be providing a nonprofit much needed, respected and appreciated talent that many organizations could not afford to pay for especially in touch times, and 3) you will stay connected to and build a stronger network as people are able to see your work and will think of you when they need your service.
Prepare a Networking Goal Many make the mistake of just showing up at an event and passing out cards. We take time to figure out what events are important for us to attend, find the proper business attire and practice our 30 second “elevator speech” but often forget to understand what we want to leave with from the event. We need to make sure that our time there is impactful and we get to the right people for our needs. Here are some helpful tricks to keep you focused: • Only take a small number of business cards – no more than 10. This will remind you as you go thru them that you need to be clear and focused on getting your information to the right few people • Keep them in one pocket – pick a side to take cards from and use the other side to add cards to. You should leave with as many cards as you gave out. If you started with 5 and end up with only 4 cards plus 1 of your own, you can adjust your networking accordingly.
Darcella. K. Craven
If you need assistance, please do not
hesitate to reach out the consultants in
the Veterans Business Resource Center.
Our services are no cost to transitioning military, Veterans and their immediate family members. No matter what part of the country you are in, we have a
center that can assist you including Guam and Puerto Rico. Good luck with your networking.
Darcella K Craven has over 20 years of experience in corporate, government, non profit and military organizations. She is currently the Executive Director
• Keep blank cards available or an app on your phone – sometimes people forget their business cards. Having blank cards in your pocket allows you to write down the person’s information plus it will help you remember that person to write his or her name down and why you have their information. You might also simply pull up notepad on your phone to write their information down or even scan their card right into your phone contacts. There are great free business card reader applications available.
of the Veterans Business Resource
• Have note cards ready to mail – this is a lost art and it is very appreciated by all. You can always send an email and make a phone call, but having already addressed notecards available in your car or home to write a quick “it was great meeting you” note goes a long way to help people remember you from the many others they met that day.
business decision making. Darcella has
Center, a nonprofit organization dedicated to assisting Honorably Discharged Veterans, National Guard and Reservist and Active Duty personnel and their families with transitioning back into civilian life with starting and expanding businesses. An Army Veteran, she holds a Masters of Arts in Management from Webster University and is currently pursuing her Doctors of Management focusing on impact of military experience on small been featured in numerous articles for her transition from the military and the welfare system to an accomplished business woman and is actively involved in many civic organizations. For more information: Website: www.vetbiz.com
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V e t er ans in Fr anchising
W I N H ome I nsp ection
WIN Home Inspection Honors Veterans Year Round through WIN For America Giving back to those that served, WIN awarded six veterans reduced franchise fees in 2014 At WIN Home Inspection, veterans make up over 25% of the company thanks to active recruiting of veterans. In 2012, WIN pledged a commitment of over $1.2 million to their WIN For America program to assist veterans, vowing to secure 50 veteran candidates to work for their company.
Franchising USA
Less than two years later, the total number of WIN veteran franchise owners recruited through the WIN for America program stands at 23 and continues to grow. “Veterans are good people to grow with,” says Keith Mathias, Director of Strategic Market Development at WIN. “We understand the value of veterans and through our WIN For America program, actively recruit and reward them.”
WIN Home Inspection offers a Gold and Silver level award, providing 50% and 25% off franchise fee respectively. For a potential veteran franchisee, or Strategic Partner (S-P) in WIN-speak, this is a remarkable incentive as WIN goes above and beyond recruitment, offering additional assistance, financing help, special training and more. “When I was researching franchise systems, WIN was one of only two companies that offered a veteran incentive,” says Thomas Leonard of WIN Home Inspection Dr Phillips, a retired Naval Officer, who served the country in three combat tours including Horn of Africa and Iraq. Leonard is a WIN For America service award recipient in 2014. Incentives aside, WIN offers a business model that provides comprehensive training and support, setting up S-P’s for success immediately. “I made a complete career change but with WIN’s support system in place, I immediately was given the resources- and the confidence- to do what I needed to do to succeed,” adds Leonard. WIN for America success stories are even further testament to the opportunity WIN provides. James Price, of WIN Home Inspection Lubbock, was the first recipient of a WIN For America award in 2012 and has grown his business exponentially
“We understand the value of veterans and through our WIN For America program, actively recruit and reward them.” since he began. “I’ve jumped past all my projections, and tripled them, growing the WIN brand in West Texas,” says Price. “WIN provides such complete marketing plans and I believe having followed it to a tee, it’s what’s made me so successful in such a short period of time.” “WIN not only is veteran friendly, they actually reach out to veterans. There’s a big difference,” says Richard Haas of WIN Home Inspection South County, Retired Navy Submariner and 2014 WIN For America service award recipient. “More companies should be out there giving veterans jobs- it’s a patriotic thing to do.” “A lot of what’s appealing about WIN, spoke to me as a veteran,” says Retired Naval Aviator David Schalm of WIN Home Inspection Kettering, and WIN for America 2014 award recipient. “The business structure, the marketing plan, even the fact that I wear a uniform everyday- all aspects of WIN’s model appeal to me and coincide with my military training. It’s a comfortable way to make a transition to a long-term civilian career.”
This is Veterans Business Services second year of supporting WIN Home Inspection franchise and we are excited to be able to promote the incentives of the WIN for America program to all the Veterans in our network. VBS looks forward to another successful year of presenting Veterans who are qualified to start a franchise and motivated to succeed. ABOUT WIN HOME INSPECTION WIN Home Inspection began in 1993, offering home inspection business franchises in the Pacific Northwest. Within a year, the company dominated this regional market and has since expanded across the US with 187 locations in 31 states. A member of the VetFran Chairman’s Corps, WIN is a recognized leader on behalf of veterans and the franchise industry. For information on WIN Home Inspection and the home inspection business opportunity, call 800.967.8127, or visit www.wini.com or www.winfranchising.com.
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V e t er ans in Fr anchising
Jim Mingey, Team Member
VBS pledges franchising profits to rebuild The Veterans Corporation EBV Graduate Companies to spearhead effort The idea for The Veterans Corporation (“TVC”) when formed by Congress in 1999 was to act as central clearinghouse to help Veteran entrepreneurs. And it was a good idea supported by major Veteran Service Organizations. But when the original politically appointed team mismanaged and abused its promise, the next generation of Veterans who by then had begun to bear the burden of Iraq and Afghanistan got short changed. They were unaware that quietly, in the dead of night, the politicians took away the funding for their The Veterans Corporation. The politicians threw out the proverbial “baby with the bath water”. The reality is that old The Veteran Corporation just couldn’t function with all the political interference. Then and now it needs to be a private organization, one that is self-sufficient and controlled by the next generation of those who have borne the battle. The logo for original TVC was supposed to depict Veterans thinking outside the box. And our new Veterans were definitely “outside the box” then, they were actually “in the sandbox”.
Franchising USA
Out with the old The Veterans Corporation new logo will now simply represent Veterans, and it will belong to those who have actually borne the battle.
In with the new Of course a logo and ten cents still won’t get you a cup of coffee these days. So initial financial support will come from Veteran Business Services (“VBS”) a company using a profitable franchise industry business model developed at the Entrepreneurial Boot camp for Veterans with Disabilities (“EBV”).The VBS plan was also supported by the Federal Government’s” Boots to Business”
Program for transitioning entrepreneurial servicemen and women. Unfortunately not all Veterans can access the competitive EBV program. Because of that limitation VBS and other EBV graduates have decided to launch an initiative to enable the new generation of Veterans to get control The Veterans Corporation. By doing so, they can accelerate knowledge sharing and resource strategies. TVC will operate as a private social enterprise. VBS is now profitable and has been fortunate enough to get further support from the Institute for Military and Veteran Families (“IMVF”) with IMVF acting as a Trustee. VBS will raise capital for the TVC initiative under the Kiva/IMVF crowdfunding loan platform.
But what’s the strategy for rebuilding The Veterans Corporation to operational self-sufficiency?
VBS, using its Franchise Accelerator will be the first of hopefully many other Veteran and EBV businesses which will pledge profits to help rebuild a new TVC .VBS will also make its technology available to TVC via its VA VRE pilot to train veterans to build and execute successful self-employment plans with Chapter 31 benefits. Veterans will first learn to use the tool to implement franchise transactions. Other uses include providing mentor teams for developing franchise concepts for qualifying Veterans under the VA VRE Program
“VBS will raise capital for the TVC initiative under the Kiva/IMVF crowdfunding loan platform.” great tool for Veterans but any successful business plan requires focus and customization. TVC’s ultimate goal will be to have an Army of small business mentoring teams and Veteran peer to peer team members at the ready for the new generation of Veterans who have borne the battle. 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
As a recent Department of Defense white paper, After the Sea of Goodwill: A Collective Approach to Re-integration pointed out, there are literally tens of thousands of Veteran support entities from the all of sectors depicted in the graphic (left). Even with this many resources that our out there there’s been something missing for Veteran entrepreneurs: coordinated small business advocacy team and peer to peer resources. VBS has been working with Process Peak to improve its Veteran focused CRM system and its VBS Franchise Accelerator. Both will provide TVC a platform for mentoring and partnership opportunities for economic growth and self-sufficiency. TVC then can make the holistic advocacy team plan grow. Small business mentoring is a
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V e t er ans in Fr anchising
Brandon Moxam, Director of Brand Development, U.S. Lawns
Veterans leave the military armed with many valuable professional skills, from people management, to working effectively under pressure, to dealing with rapidly changing situations—they’ve done it all. Since 2013, the Army has been working to reduce more than 80,000 active-duty troops over the span of five years. As the military continues to downsize, the number of unemployed veterans is on the rise. Now that more veterans are on the hunt for job opportunities, they must consider what careers would best align with the skills they’ve developed during their service. Veterans could leverage these skills in a number of different industries, but franchising—an opportunity that allows veterans to rapidly grow their own business— is a business endeavor that is particularly well-suited for them. Here’s why:
Franchising USA
A Familiar Structure and Commitment Franchises offer veterans the structure and commitment that they’ve grown accustomed to in the military. Emotionally, franchise owners have a strong sense of loyalty to their brand and to their fellow franchisees. There’s also a sense of comradery among franchisees, as they understand the importance of creating and maintaining relationships. While the day-to-day role of a franchisee and veterans are incomparable, the mindset of joining something bigger than oneself, feeling a sense of belonging, and being part of a team, ties the two together. The business model of a franchise also mirrors that of the military. Because of the immense amount of training and time spent in the field, military personnel understand the value of a regulated system. Likewise, having to simultaneously operate independently and report to someone else (i.e. the franchisor) is a nonissue for a veteran, as it’s a key component of the military culture. Veterans also don’t see authority as a threat but as a resource, which is a critical part of running a successful business. The ability to make decisions and execute on them, while
following the example of those who’ve done it before makes veterans great potential franchisee candidates.
Financial Incentives and Economic Stability Franchises offer a number of financial benefits specifically designed for veterans. For example, the VetFran Program (sponsored by the International Franchise Association IFA) includes more than 500 franchise systems that offer financial incentives to veterans who want to own small businesses. Unlike the standard investor, veterans receive a discount on initial fees and special financing options. A veteran should have no problem finding a franchise opportunity that interests him or her, as the opportunities range from owning your own restaurant chain to environmental service company. VetFran has helped more than 6,300 veterans to create and run their own businesses. On another financial note, a veteran’s pension allows them the freedom to become a franchise investor. Because they have a paycheck coming in every month, it helps to offset living expenses, and the opportunity to explore a new business venture. This isn’t to say that a
Franchising for Veterans veteran couldn’t start their own business from the ground-up, but with the amount of resources franchises offer veterans (discounting rates, proven business model, and professional guidance) there’s no reason not to explore the opportunity.
Leadership Capabilities Because of their vast leadership experience in the military, veterans are natural entrepreneurs. When running a business and working with others, it’s critical to have experience mentoring, training, and motivating your employees. Veterans know how to lead a team toward success by setting clear goals, prioritizing collaboration, and rewarding good performance. Veterans are also skilled at handling adversity and staying positive during challenging times. Although the franchisor equips their franchisees with the necessary tools for success, they can’t protect them from the highs and lows of the market. A business’s first year, in particular, can be emotional roller coaster for new entrepreneurs. One day starting a franchise can seem like the best decision they’ve ever made, and the next it seems like the worst. But veterans (who have experienced
high risk situations) know how to stay focused and positive, keeping the bigger picture in mind. On a management level, veterans make great franchisees because they have worked with many different people from a variety of backgrounds, cultures, and experience levels. The military has given veterans an opportunity to be fully exposed to diversity, so they understand how to communicate effectively with nearly everyone they meet. This is a highly valuable skill to have because a large contributor of your success as a franchise owner is dependent on your employee’s career development. For most veterans, the thought of reentering the workforce unexpectedly and finding a job they actually like seems unlikely, but franchising is a viable, exciting option. And while franchising is by no means comparable to the experiences a veteran had during their time in the military, it offers a type of creative outlet for those who are ready to start a new chapter of their lives and put their entrepreneurial skills to the test. Brandon Moxam joined U.S. Lawns as Director of Franchise Recruiting in 2007 and is now Director of Brand
Brandon Moxam
Development. He has been instrumental in the U.S. Lawns branding development since 2012. He manages the franchise recruiting department at U.S. Lawns and works closely with potential new franchisees to fully educate them on our U.S. Lawns systems and processes that are in place to guide them to build a successful business. In addition, Brandon is a Certified Franchise Executive and is active within the International Franchise Association. For more information visit: www.uslawns.com
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ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
it’s all about growth
60 Franchisors Flew in to Meet With Me
Here Are My 7 Big Takeaways
It is a rare opportunity to meet with a franchisor’s executive team one on one, but to do it outside of formatted business meetings where everyone’s guard is down and you get the real inside story is an opportunity not to be missed for an industry professional that advises candidates on which franchise brands are the best targets in the market. Our fifteen thousand candidates have benefitted from this market intel for over a decade. In January I had an opportunity that comes to me a couple times a year to spend a few days with executive teams from some of the top brands in the US. The
Franchising USA
biggest benefit to our candidates was the behind the scenes knowledge we gained by spending time with this elite group of industry insiders. The first note is that the industry overall is doing quite well. Common themes in every conversation were about growth, not just growth in franchise development but growth of their franchisees. Year over year performance at the unit level looks very strong in well-established and healthy franchise brands. We like to see that existing owners are on strong growth trends as it indicates market activity, franchisee satisfaction and franchise
system refinement. The strongest brands in the market seem to be those that made a very strong commitment to support, training and growth over the past 5-7 years. A small but growing trend is that for what may be the first time in history we are seeing large investment funds considering franchise opportunities just like any other candidate. This is not the fund considering buying the parent company, or existing operating units, they have been doing that for years. We are seeing occasional instances were these investment funds are considering and
Page 47
DON'T MISS THE BIGGEST FRANCHISE EVENT OF THE YEAR!
You will notice some innovative changes at IFA's 2015 annual convention! We've upped the ante with new enhanced features and paramount educational and networking events. You don’t want to miss franchising’s biggest and best event of the year! HERE’S WHY:
Unique networking opportunities will connect you with other franchise executives to expand your portfolio of contacts and cultivate partnerships that will help you and your brand get to the next level.
Registering online is now easier than ever with our newly improved and streamlined process!
Informative educational sessions focus on hot topics that impact your bottom line – everything from operations, technology, franchise relationships, sales & development and more. This is the perfect event to showcase your innovative brand in the exhibit hall!
Interactive roundtable discussions led by experienced and savvy franchise leaders will give you an array of new and exciting information that will help you grow and evolve your brand.
REGISTER NOW
convention.franchise.org THE EARLY BIRD CATCHES THE SAVINGS!
IFA Members: Register before October 24 and save $50! Contact Lynette James at 202-662-0782 or ljames@franchise.org if you are interested in exhibitingFranchising or sponsoring. USA
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
“Common themes in every conversation were about growth, not just growth in franchise development but growth of their franchisees..� buying undeveloped franchise licenses, often multi-unit/territory. From an advisory point of view they are interesting because they are also frequent users of the expertise and resources we offer, they see the benefit of expert guidance to move quickly and accurately in their decision making.
services. The lower start-up costs, higher margins in these businesses and simplicity in their models make them great targets for the more risk adverse or empire builder. While location will matter, it is not quite as critical as in the restaurant business since marketing can drive feet through the door.
The brands we saw operating very successfully covered a range of markets. There is not one unique growth trend, there are many. A franchise buyer should feel confident that there are successful businesses to be found that fit their abilities and how they want to work. As always, though, expert guidance increases their odds for finding the right match.
Possibly some of the most interesting trends in franchising are among those brands that corporate executives are using to pursue replacing their incomes. These are more executive, even semi-absentee, in nature. They tend to cover multi-unit, regional or entire markets in their territory awarded and have large consumer or business client bases to pursue. These are empire building opportunities with big potential, but the total start-up cost may be no more than opening a single fast food restaurant!
The restaurant business remains as exciting as it is complicated. This is a very market and real estate driven category. There are good brands to be had, the quest is for a unique concept that will stand out among the competition but is not a passing fad. If we look to long standing trends we are seeing evolutions within major established categories like burgers and pizza. The challenge this brings up is that the competition in that space is brisk and when a new type of food appears and is successful the competitors show up fast. The key to success in these evolutionary food concepts is to find well-funded brands that can build a big footprint fast and overcome any hurdles they find along the way. The smaller underdogs may eventually grow, but they will often be losing prime sites to whoever dominates the market in their category. The more common game plan for the smaller brands is to be acquired by the market leader. If we step outside the restaurant business but remain focused on retail brick and mortar options there are some really exciting options as well. In this category you might find interesting options in travel, fashion, fitness (a hot evolutionary segment if you pick carefully) and consumer
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Within these empire building opportunities you might find concepts like home services, construction, disaster recovery, business services as we as Master franchises and Area development opportunities where you play a much larger role in the franchisors system. All in all a lot of golden nuggets of opportunity out there, but you have to find the right one. In one of the conversation I had with an old friend we were talking about each of our 20+ years in the franchise business. What we decided is that at no point in history was it a better time for anyone to be considering franchises than right now. Whether employed, unemployed, business owner or investment fund there is a franchise that can help you meet your goals. The breadth of options combined with the growth in expertise and capability is unmatched in any other segment of our economy. With employees now less secure than business owners it is a perfect storm of
George Knauf
opportunity within the franchise space. Great franchise brands await those that have management skills, operating experience and possibly some marketing or sales exposure. Those brands offer up world class training and support as they have a vested interest in your success. The last note on the health of the industry I will pass along is that top franchisors are being very selective, they are not offering franchises to every candidate that comes along. They are seeking the best and brightest as they want to build big healthy brands. That willingness to pass on candidates that are not the right fit, who may not succeed, may be the healthiest trend I saw. 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.
Contact the Franchising USA Expert George’s Hotline 703-424-2980 www.FranGuide.com
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ex per t advice
David Banfield, President, The Interface Financial Group
Thinkin
t he r at iona le Outsourcing is a comparatively recent concept. However, it is one that has literally ‘caught on’ very quickly. We now see outsourcing in a variety of different business formats. We also see outsourcing opportunities arising for both small and large business organizations, as well as many different levels of government. By way of a definition for outsourcing, we might think of ‘farming out’ a task or even sub-contracting tasks to a third party. The reasons for entering into a form
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of outsourcing are numerous and range from the basic financial implications of not having to do something yourself, to the opportunity of finding expertise beyond one’s own resources. For small business owners outsourcing can be a tremendous advantage during their start-up period. The advantages can definitely span the financial and expertise areas. With an outsourcing approach you usually ‘buy’ just what you need. This might translate into buying ‘bookkeeping’ services for just one or two days a week. Going in a more traditional direction, an entrepreneur might be faced with employing a bookkeeper on a fulltime basis only to find that perhaps the individual was somewhat under-employed in the early stages of the business. While a bookkeeper represents one area
of staffing that can be outsourced, there are in fact numerous such areas. For a business owner it might be possible to outsource virtually all of their needs. This is made possible through the innovation of other entrepreneurs recognizing the need and filling the gap with the provision of temporary employees. In the staffing area there are, in fact, very few situations that cannot be filled through outsourcing - from factory workers through to senior level financial executives. One of the major components of getting any business energized is to ensure that you have a solid business plan and solid finance program in place. In todays’ environment the latter item is not always as easy as just making a visit to your local bank. Business owners need to be creative when their preferred financier says no.
“One of the major components of getting any business energized is to ensure that you have a solid business plan and solid finance program in place.”
David Banfield
ng outside of the box
e for ou tsourcing Gone are the days when being rejected by your bank meant that your business would stall and maybe even fail. In the financial marketplace today there are a number of solid options that can generate working capital to fuel business growth. It’s all about thinking outside of the box. One of the interesting facts about companies that provide outsourced staff and services is that a large percentage are franchise organizations. This represents some added value for both existing entrepreneurs looking for services and would-be entrepreneurs looking to enter the world of self-employment and business ownership. A franchise is by definition a business that has a solid and proven system as its core. It is a business that has been tried and tested usually over a period of many years. It is
a business that can easily be replicated to form a franchisee opportunity. Therefore when you engage the services of a franchise organization as part of your outsourcing agenda you know that you are getting a tried and tested business that will enable you to grow and provide you with a high comfort level in the personnel or services provided. For individuals entering the world of selfemployment the options are legion. Where to start is often a major hurdle for potential entrepreneurs. How to develop a plan, how to pull all of the start-up components together. Often the task proves too much for potential business owners, and their venture never sees the light of day. Franchising on the one hand comes with a ready-made plan, a proven track record and a support system. This takes way all
of the initial fear and ‘hard work’ that a conventional start-up operation might have. While franchising offers great getting started support, it also brings an enormous range of options to the table. Most wouldbe business owners have an idea of the type of business they want to be involved with. Therefore, if you are looking for a specific type of business, there is a very strong likelihood that such a business exists as an established franchise model. Franchising is also a ‘think outside of the box’ situation for many people, as they do not realize just how substantial the marketplace is in the franchise world, and likewise they fail to realize how diverse the industry is in term of industries and services that are covered. If we think about our own daily actions, we frequent more and more franchises every day from gas stations to coffee shops and from automotive operations to financial services. Whether you are looking to outsource some of your company needs or whether you are looking for your next career, franchising represents an option to explore outside of the conventional box. David Banfield is President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. For more information visit: www.interfacefinancial.com
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wo m en in fr anchising
Viktoria Tsukanov, Mintigo
Women will raise the bar in business in 2015 Many cracks were made in the glass ceiling in 2014. This year we saw Malala Yousafzai win the Nobel Peace Prize for evangelizing for women’s equality on the international stage. Beyonce spashed “FEMINISM” all across TV screens during the VMAs. Iowa and West Virginia elected their first female senators. The NBA got it’s first female coach. We can expect 2015 to bring more groundbreaking events like these. Hopefully, we will see this spill into the business world too.
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“The data speaks for itself; strong communication and collaboration skills are helping women put more cracks in the glass ceiling in business.” publicity, events planning, social and digital marketing teams. The data speaks for itself; strong communication and collaboration skills are helping women put more cracks in the glass ceiling in business. As humanizing the enterprise grows in importance and connecting with a customer through lots of noise becomes more difficult, so will the skills needed to do that effectively. What you see is women harnessing social, digital, & 1-to-1 marketing functions more readily, driving revenue, and joining the C-suite as a result.
Mintigo recently conducted an original study on the differences between male and female led companies. Using their proprietary database of B2B intelligence, and machine learning Mintigo analyzed millions of companies. The results are fascinating, illustrating how the mere 17% of companies with female CEOs perform differently from their male led counterparts.
The Difference Between Male & Female CEOs Female leaders appear to be more likely to rise to the top in the healthcare and non-profit industries, on the east and west coasts, and in the B2C space. On top of that, the study found that women tend to achieve better results than men in companies with over 1000 employees. Larger companies led by women are on average 18% more profitable. Most important to note are the differences in the way that women and men run their organizations. Companies with female CEOs tend to focus more on creating a strong social & marketing presence. Specifically, they have bigger and stronger
What Are Women Leaders Doing Differently? Another study suggests that men are more willing to ask for what they want. This could account for the gap between male & female CEOs. How do you get that number to go up? What will women do in 2015 to close this gap? Here are some ways to create some more cracks…
Have a clear mission Ariana Beil, VP of Customer Success at Mintigo, suggests having a plan. “The clearer and more specific the mission for your career, the better,” she says. Don’t listen to that little voice that tells you you’re not good enough. Believe in your abilities and shoot for the moon.
Do your homework “Practically speaking, if you want to be taken seriously and advance your career, read the daily news and your industry trade magazines to be a part of the big picture conversations with decision makers,” suggests Linda Pasinli, Director of Total-Apps. “Many times I was considered a subject matter expert
because I had the historical knowledge of the situation and knew of the key players involved.”
Step out of your comfort zone Women tend to be less likely to take on a job they don’t feel qualified for. “Push yourself to take on roles and responsibilities outside of your comfort zone,” suggests Meagan Einsberg, Vice President – Customer Marketing and Demand Generation at DocuSign. “If you even think you are partially qualified, you are more likely fully qualified. Go for it.”
Collaborate with your team “The future is connected and collaborative,” says Lindsey NefeshClarke, Founder of Women’s Worldwide Web. “Increasingly, success arises out of creative collaboration and it’s crucial to create smart collaborative networks: internally, within a company, harnessing talent at all levels; and externally, within one’s sector and across sectors.” Basically, if your team does well – you’ll do well. Set them up for success.
Be bold! Lisa Joy Rosner, CMO of Neustar reminds us, “You don’t get what you don’t ask for; the worst thing that can happen is people will say ‘no.’” We’ve all heard that word before. The best way to advance is to keep asking for what you want no matter how big or bold. You will be surprised at how many yeses you will get! Expect an even longer list of exciting events advancing women in business in 2015. Don’t just spectate this year, take 2015 by the horns, and get cracking on your seemingly far-off goals and dreams.
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Rolando De La Torre, Jr., Co-founder, ZeeHub
A Non-Technical Guide to
Becoming Tech Savvy You probably queried the world’s data in less than a second to find this article. That search seems like it should be difficult, but it wasn’t. If you don’t consider yourself tech savvy, you’ll be pleased to know that basic tech proficiency can be achieved painlessly these days. If you can commit to independent learning, identify problems,
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Becoming tech savvy starts with independent learning. Here’s why:
you understand the product. You can browse these materials at your own pace, without judgement from anybody. The time you invest in learning a platform up front will save you from many headaches, pricey tech consulting fees, and general frustration down the road. Best of all, many products mimic each other, making the learning process easier each time.
There are amazing resources out there for you to leverage
Tech platforms change, and they change often
Tech products come with documentation (often video tutorials) devoted to helping
Every product you get to know and love will change, so prepare accordingly.
and accept things for what they are, you’ll be more comfortable with technology in no time. Let’s elaborate on those points.
Learn to learn on your own
ex per t advice
Rolando De La Torre, Jr., Co-founder, ZeeHub
“Remember, apps, devices, etc. are nothing more than tools that help us achieve more than we could given our own capacity.” Repetition and habit might get you by in the beginning, but what are you going to do when a small change upsets your rhythm? Exactly - you’ll go to the documentation and get up to speed on the advancements. Once you really master how to find and leverage documentation, you’ll no longer have any reason to fear changes to your favorite products.
There is no limit to what you can learn If there’s no limit to what you can learn, then there’s no limit to what you can accomplish. The tech community wants you to embrace technology, so you will get as far as your motivation takes you. You can then apply what you learn in ways that will help you run your business, simplify your life, and (of course) show off to your colleagues.
Recognize the problem(s) you are trying to solve Remember, apps, devices, etc. are nothing more than tools that help us achieve more than we could given our own capacity, so you need to figure out what to accomplish before you find the right tools for the job. Make the job about solving a problem, and remember this when outlining your pain points:
Clearly define problems “I don’t know who is in my sales pipeline.” This statement clearly describes a problem, and provides a solid starting point from which you can search for a solution. It becomes infinitely easier to find solutions (and for others to help you find them) when the problems are clearly defined. Never,
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under any circumstances include jargon or acronyms in your problem statements.
Reduce complexity Focus on the core aspects of your problems. The best way to remove complexity from a solution (in this case a tech product) is to remove complexity from the problem. Once you nail down the core problems, see if you can solve them using the trial or free version of different tech products. The last thing you should worry about are bells and whistles. As long as you are solving your core problems and improving your tech mastery, you will be ready for those in no time.
Take a product for what it is - not what you want it to be Some say acceptance is the foundation for lasting relationships. This proves true in the tech context as well. Every product has its idiosyncrasies. Accept them, or find something with more tolerable idiosyncrasies. Consider the following:
Software products do exactly what you tell them to do This means you can avoid most issues by simply understanding what you can (and can’t) tell the product to do. Mastering this first part (via independent learning) should reduce those frustrating moments of “it did this” and “it’s doing that”, which cause many people to shun tech entirely. Usually, the real scenario is, “I’ve done this, which caused it to do that”. These cases almost always have a very easy fix, and are easy to diagnose with a good understanding of the product.
Rolando De La Torre, Jr.
Be resourceful with existing features Some fall into the trap of wishing new features into a product before trying to work with what’s there (“If it did
this, then it would be much better”).
Sometimes these feature requests are
born out of inherited familiarity (from
another product) versus a real desire for
efficiency or problem solving. It helps to look again at the problem you are trying
to solve, make sure you fully understand
the product, and try to figure out a solution accordingly.
If you made it this far, keep the momentum going! Send me a note if you ever need a word of encouragement.
Rolando De La Torre, Jr. is a co-founder of ZeeHub, a startup that creates simple, lightweight franchise management software. Prior to ZeeHub, he was Director of IT for a startup franchise brand, and graduated from Stanford University in 2009. Rolando was recently chosen as a winner of the Young Entrepreneurs in Franchising Global Competition. Email: rolando@zeehub.com or go to www.zeehub.com
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STRATUS BUILDING SOLUTIONS MASTER FRANCHISE OPPORTUNITY At Stratus Building Solutions, we have developed a one of a kind Master Franchise Program that affords you the opportunity, rewards and freedom that you truly desire. Many of our Master Franchisors are business executives with strong sales and/or marketing backgrounds in different industries or professions. • Own and manage a business that generates significant recurring revenue each and every month. A business that provides on-going royalties and multiple recurring revenue streams. • Apply all benefits of our successful business model and proven systems. Stratus Building Solutions 10530 Victory Blvd. North Hollywood, CA. 91606 www.Stratusclean.com (818)981-1700 info@stratus-la.com
• Own and operate a recession - resistant business with a lucrative, exclusive territory in an incredibly fast growing multi-billion dollar industry. • Multiple franchise concepts under one roof. • Our profit making line of “Stratus Green Clean” chemicals.
Proud member of:
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ex per t advice
Harold L. Kestenbaum, Attorney and Owner, HLK, P.C. Law Firm
the
Generation Z Effect 2015. Are we where we thought we would be at this time? In the mid to late 1900s, most people dreamed the general public would have flying cars and be able to teleport in 2015. Of course, that hasn’t happened, but a lot has changed about society. One of the most notable may be the generational shift. Franchising USA
“Someone who is already tech savvy can have great influence and reach in the social media world; thus driving more business.” This year, 2015, is the year when the first members of Generation Z turn 20. They have never known a world without the Internet or cellphones. Information has always been at their fingertips. That has already led to new ideas, rises in target marketing to individuals of this particular generation, and a new way of thinking. In previous generations, it was common for teens to be thinking about their careers and where to go to college. But in this current generation, research shows many teens are thinking beyond college. And it does not seem that many want to follow what is often considered a traditional path. According to the U.S. Census, more than 4 in 10 believe they will work for themselves in their careers. That could mean a rise in entrepreneurs, or perhaps a rise in franchisees. Traditionally speaking, franchisees go into business for themselves but not by themselves. That collaborative spirit may speak to the current generation. But, if you are a franchisor, are there drawbacks to awarding a franchise to someone of this current generation? Those who are 18–29 years of age are already the premium targets for television viewership, marketing, and consumer spending. Is franchising next? The benefits of having a young franchisee can be tremendous. New ideas can spark positive change, and someone who is already tech savvy can have great influence and reach in the social media world; thus driving more business. A younger individual also may have more time to devote to a business and be very eager to see it thrive. Passion is among the many things that help a business succeed. However, someone who is 20 years of age is likely to not have any business experience. That does not mean that person can’t be successful. It means
there may be a learning curve. It also means the franchisor may want to take some precautions before embarking on this partnership. For example, consider suggesting the franchisee partner with someone who does have business experience and capital. When it comes to capital, younger people often do not have big bankrolls. Mark Siebert, CEO of iFranchise Group, is someone I work in conjunction with often. He advises his clients to turn down anyone who is not properly capitalized. “Franchisee success is the key to franchisor success,” says Siebert. If capital is a concern, perhaps the parents of the potential franchisee can offer financial assistance, but be sure that the franchisee remains committed. And at a minimum, the franchisor may want to have the parents of the franchisee sign or guarantee the franchise agreement since they have the assets. That may be considered the traditional route, but as previously mentioned, this generation is different. One funding mechanism, called crowdfunding, is gaining enormous popularity, and may be one way these franchisees can raise capital. Crowdfunding campaigns, like Kickstarter, allow people to raise money for any type of venture. In some cases, crowdfunding has been used to fund the purchase of a franchise. “Crowdfunding can allow someone to raise the capital needed to qualify as a franchisee,” says Siebert, “but the franchise candidate will need to raise enough to be confident that they are adequately capitalized.” If a franchise requires a $100,000 investment, and a person raises $200,000 through crowdfunding, then a deal could work. The key here, Siebert says, is to make sure capital raised will meet the needs based on sound financial planning.
Harold L. Kestenbaum
There are, of course, a lot of factors to consider when looking to award a franchise. There are no legal age requirements for a franchisee, except that unless the franchisee is over 18, they are not of legal age and cannot sign any agreements. No matter what age the potential franchisee is, proper legal representation is important. For both franchisor and franchisee, it is paramount to have competent legal counsel before entering into an agreement. Once done, who knows – both franchisor and franchisee could have a lot to gain. Sure, members of Generation Z may not have the all of the resources they need right now, but they do not seem to be afraid of that. And they are savvy enough to find those resources. Maybe that is the key to learning something new, and starting something new. It may also be something that the members of Generation Z are teaching us now — a first contribution to what is shaping up to be a great road ahead. Harold L. Kestenbaum is the owner of HLK, P.C., a law firm specializing in franchise law and other matters relating to franchising. With more than 35 years’ experience, Kestenbaum currently is or has advised many regional, national, and international franchise companies in many industries. Contact him via email: hkestenbaum@hlkpc.com Or visit: www.franchiseatty.com
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Andy Roe, General Manager, SurePayroll Inc.
What Makes a Good Employee Great? You’ve done it – launched your franchise and it’s beginning to grow. With success comes risk, and as all franchisees learn quickly, you cannot do it alone for long if you want to scale your business. To support growth, you’ll need to employ others who will follow your vision and deliver superior service to your customers. Of course hiring the right employees for your business is a daunting task, but without employees who can wear many hats, you may find your business in trouble. It’s important to understand that not all people excel in dynamic entrepreneurial environments. With that in mind, you may be thinking… What should I look for in potential employees? How can I cultivate the ones that I have?
“Entrepreneurs use passion to turn dreams into reality. Find potential employees who love what they do – and want to do it with you.”
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The following are 11 characteristics that franchisees should seek and nurture in potential and current employees:
4. Strong communication/ people skills
1. Creativity
While intelligence is important, creativity is critical for success. Most innovative ideas and solutions are not found by building silos and micromanaging employees. Creative thinkers look at issues from different angles and figure out how to solve them. Entrepreneurs ultimately want to harness the passions of employees and encourage creativity rather than stymie growth. Look for creative problem solvers.
2. Resourceful
Current or potential employees who do not feel empowered to solve problems on their own or do not think to solve problems on their own will likely have trouble in this environment. Resourceful employees identify and solve issues before they become problems. They do not need to be micromanaged. Instead resourceful employees understand the challenges of operating a franchise and are able to find solutions with what they have. Resourceful employees see what’s possible – and work to solve issues within these confines.
Look for potential employees who understand job responsibilities but are flexible, willing to learn and take on new and unknown areas of the business. For current employees, encourage entrepreneurial spirit and expect the ability to multitask. Adaptable employees work well in ambiguity and uncertainty. Set clear direction and allow employees to take the ball and run with it. In the end, you want dedicated employees who feel like they have skin in the game.
Andy Roe
have confidence that work you allocate to others will get done. Personal accountability allows employees to deliver against the end goals, and if they do not accomplish a goal, they will be able to identify the root cause rather than blame others.
7. Proactive self-starters
5. Brand ambassadors
3. Adaptable
The ability and willingness to communicate is critical in any business. Whether employees share knowledge, information or ideas, they need to use communication skills to solve challenges, engage other employees and respond to customers. Many people believe that they are strong communicators, but lack essential skills. Communication skills include verbal skills, sharing information, listening, non-verbal communication and understanding/ engaging various audiences. For potential employees, many of these skills can be assessed in an interview, such as eye contact, listening for understanding, asking clarifying questions, articulating clearly, and responding in a timely manner. Encourage current employees to actively listen, respond quickly to customers and proactively share information on projects to ensure that everyone is rowing the boat in the same direction.
These employees have drank the Kool Aid so to speak. They are committed to the company and act as if they own it. This attitude spills over into daily decision making about solving problems, spending company funds and how their behaviors and actions reflect the company and its culture. Additionally, these employees are proud to work for the company and spread the word about the products or services they represent.
6. Accountable
These employees believe that they are responsible for their actions. You can count on them to do what they say they are going to do. For a franchise owner, accountability is a critically vital trait in an employee as it allows you to
These employees have internal drive. They take on new responsibilities willingly and proactively seek ways to develop and grow. Look for potential employees who have examples of adding skills, responsibilities, projects or other growth experiences. Find opportunities for current employees to seek new responsibilities.
8. Passionate
Entrepreneurs use passion to turn dreams into reality. Find potential employees who love what they do – and want to do it with you. Ask questions about past job experiences and gauge excitement related to what they may help you to do. Passionate employees exhibit enthusiasm even in tough situations. Small businesses and franchises face a myriad of issues, and a positive attitude goes a long way in uncertain or challenging situations.
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Andy Roe, General Manager, SurePayroll Inc.
“While you may relate to people who are most like you, and think like you, you need people who bring other perspectives, ideas and innovations to the table.”
9. Lifelong learners
No one knows everything, and if you hire someone who thinks he/she does, you will likely have issues with the employee in the long run. Look for potential employees who have a thirst for knowledge and ability to learn new skills. For current employees, encourage a safe learning environment. Nothing stymies motivation, learning and growth like fearing failure equals job loss. New ideas, information and skills are crucial for employee development and satisfaction. Socrates words still hold true, the more I learn, the more I learn how little I know.
10. Relationship/personable
Current and potential employees need to work well together and deliver superior customer service, even if these employees do not think that their role is customer facing. It’s all
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about relationships with customers, employees, vendors, and consultants – and ultimately your company’s brand. You need employees who work well with others. In the end, all employees should expect to be relationship builders and interact with customers.
11. Traits that are not exactly like you
While you may relate to people who are most like you, and think like you, you need people who bring other perspectives, ideas and innovations to the table. You need your employees to cast a wider net of thinking to approach and solve problems.
Perfect employees look, act and think differently. However, these employees share some common traits. They’re
proactive, creative self-starters who believe that they can identify and solve problems with internal drive, flexibility and passion. While they don’t know it all, these employees are eager to learn. 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 with1-10 employees. You can follow Andy on Twitter @AndrewSRoe.
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Snap-on Tools Company LLC, Kenosha, WI
STOP DREAMING ABOUT YOUR PERFECT CAREER Grab the wheel and find out what it’s like to be in control of your own future. If you’ve got what it takes to run your own business, now is the time to learn more about the Snap-on Tools franchise opportunity: Top Tool Franchise 2015 Entrepreneur Franchise 500 Number 1 tool brand in the world Extensive initial training Financing available through Snap-on Credit Proven business model
SN A PONF R A NCHISE .com