Canadian Franchise Magazine
issue 4#3 - 2020
w w w. c a n a d i a n f r a n c h i s e m a g a z i n e . c o m
Great Clips
Strives to be a Cut Above
fr a nchis ing in Ca n a da
2020 and beyond
find ing the
right franchise for you wher e to sta rt a nd
how to succeed
with a fr a nchis e bus ines s LATEST NEWS
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CANADIAN FRANCHISING VOLUME 4, ISSUE 3 - 2020 president: Colin Bradbury. colin@cgbpublishing.com
publisher: Vikki Bradbury. vikki@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Assistant Editor: Diana Cikes. editor@cgbpublishing.com
National Advertising Manager: Leslye Fisher. advertising@cgbpublishing.com
PRODUCTION: production@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE:
from the
Publisher Welcome to the latest issue of Canadian Franchise Magazine. We have compiled plenty of informative news, stories and Expert Advice articles to help you in your journey to entrepreneurship. Starting with our Cover Story on Great Clips which has achieved many
milestones that point to it’s success and we also meet Yasir Saeed one of the
many successful Franchisees with Great Clips. Turn to page 10 to learn more
Great Clips
about this successful Franchise.
CGB PUBLISHING
From our experts we have Wayne Maillet who discusses Misconceptions
#107 - 1001 Cloverdale Avenue, Victoria, B.C V8X 4C9 CANADA www.canadianfranchisemagazine.com Proud member of the IFA:
in Franchising. The Canadian Franchise Association talks about Helping
Everyday Canadians Realize the Dream of Building their Business through Franchising. As usual we have some great experts discussing topics on Top
10 Food and Beverage Trends by Lori Karpman, Franchising in Canada 2020
and Beyond by Edward (Ned) Levitt, Where to start and how to succeed with a Franchise Business by Joseph Pisani.
This issue also has a 2 great Feature articles, one is Good Earth Coffeehouse
and giving back with delicious Treats, the 2nd one is Stage Coach Performing Arts with a global presence in over eight countries.
SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812
Don’t forget to take a moment to shop around our A-Z Directory at the back of the magazine. And be sure to stay in touch and send us your comments.
New items can also be sent directly to myself for inclusion in the upcoming issues.
Happy reading! Vikki Bradbury Publisher
www.franchise.org 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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contents 6
Canadian Franc
hise Magazine
ISS UE 4#3 - 202 0
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zine.com
GREAT CLIP S ST RI VE S TO A CU T AB BE OV E
32
FR A NC HI
S IN G IN CA
2020 AND BE N A DA YOND FI ND IN
RIGHT FRAN G TH E CHISE FOR YOU W HE R E TO STA RT
LAT EST NEW S
FIN ANC IAL
HOW TO SUCC A ND EED SE BU
W IT H A FR A NC HI ADV ICE FRO M THE BAN KS
S IN ES S
TOP LAW YER Page 1 S’ ADV ICE
On the Cover 6 Cover Story: Great Clips
Strives to Be a Cut Above
22 Franchising In Canada 2020
and Beyond
28 Finding the Right Franchise
for You
24 Where to Start and How
10
to Succeed with a Franchise Business
in every issue 36 A-Z Franchise and
16
Services Directory
focus 16 Stage Coach
Report Record Breaking International Student Numbers
20 Good Earth
Franchising USA
Gingerbread Families Feed Local Food Banks
18
Canadian Franchise Magazine
march-may 2020 snapshot 26 It’s Moving Day for Jeff de Bruges
24
Expert Advice 10 Helping Everyday Canadians Realize The Dream
Of Building Their Business Through Franchising
The Canadian Franchise Association (CFA)
14 The Top 10 Food And Beverage Trends For 2020
Lori Karpman Karpman and Company
26
18 How Your Company’s Culture Can Help You Recruit
Better Franchisees
Lora Kellogg, CFE | President and CEO | Curious Jane
22 Franchising In Canada 2020 And Beyond
Edward (Ned) Levitt | Partner | Dickinson Wright LLP
24 Where to Start And How to Succeed With A
Franchise Business
Joseph Pisani | Director North American Industry Sectors, Franchise Finance | BMO Bank of Montreal
30
28 Finding The Right Franchise For You
Steve Tallis | Co-founder | Starks Barber Company
30 Canadian Seek to Save Time By Eating Out;
Restaurant Franchisees Seek Profits Through Efficiency
BDO Canada
32 Misconceptions In Franchising
Wayne Maillet | Founder and Franchise Management Consultant Franchise Specialists
34
34 Making A Smooth Exit: Steps Every Business Owner
Should Take To Plan For Their Succession Dan Kelly | President and Chief Executive Officer Canadian Federation of Independent Business
Page 5
cover stor y
G re at Clip s
Great Clips Strives to be a Cut Above The world’s largest hair care brand now has nearly 4,500 hair salons across North America, including 157 in Canada. With markets available for development in several Canadian territories, it’s worth looking at how this brand lives up to its name.
What makes a brand great? Great Clips has achieved many milestones that point to its strength: It’s the largest and fastest growing salon brand in the world, serving about two million customers weekly. It’s the salon industry’s first billion-dollar brand. And it consistently ranks as a top franchise opportunity in Entrepreneur magazine’s Franchise 500, including #1 in its category for the past three years. Great Clips’ position as a brand powerhouse has helped it secure major sports partnerships to connect with customers where they live and have fun. In January, the brand inked a multiyear partnership with the National Collegiate Athletic Association (NCAA), designating Great Clips as the Official Hair Salon of the NCAA, with exclusive marketing and media rights for all 90 NCAA Championships, including NCAA March Madness®. Great Clips also has a multi-year affiliation with the National Hockey League (NHL). As the Official Hair Salon of the NHL®, the brand receives
Page 6
Canadian Franchise Magazine
exposure during all U.S. and Canada Stanley Cup® Playoff game broadcasts. Add in Great Clips’ partnerships with the X Games and Monster Jam, and the brand has even more national and local-market opportunities to grow brand awareness and connect with customers. These powerful sports connections provide franchisees various opportunities to leverage unique marketing and promotional programs that speak to their customers’ passions.
History of Connecting Finding ways to connect with customers has been part of Great Clips’ history since it was established in Minneapolis, Minnesota, United States, in 1982. At the time, most people got their haircuts at full-service hair salons, at barbershops or at home. The company’s founders created the then-radical concept of a walk-in haircare salon that offered a select list of services to meet the customers’ desire for value – and weekend and evening hours to fit their busy lifestyles. This brand strategy is one of the things that appealed to Aruna “AK” Kumar when he began to research Great Clips after a salon opened near his home in Toronto. “I liked the walk-in concept and the idea of value pricing for everyone. I
“The company has created a franchise support system of people, resources and tools built on a foundation of mutual respect and trust that starts with the first phone call.” particularly liked that no appointments were needed,” he says. AK became a franchisee in 2012 and now owns five salons in the Toronto market. He acknowledges that his success has required hard work. “It’s not a get-richfast thing,” he says. But there’s a payoff: “Being a Great Clips franchisee means owning and operating your own business with the power of a national brand behind you. It’s like being in business for yourself, but not by yourself,” says AK, noting he has had a “great experience in all aspects of being a Great Clips franchisee.”
Franchisee Focused Great Clips strives to help all franchisees build their legacy. One hundred percent of Great Clips salons are franchiseeowned, and the company’s manager-run operational model has allowed many franchisees to continue their professional careers while establishing their salon businesses. The average Great Clips franchisee operates five or six salons within five years of opening their first salon. Great Clips is led and managed by a team
of franchise-industry leaders who know that growth isn’t only about expanding the number of physical locations. These leaders focus on the metrics that matter to franchisees: The brand has posted 61 consecutive quarters of same-salon sales growth, with systemwide sales of over $1.5 billion. The company has created a franchise support system of people, resources and tools built on a foundation of mutual respect and trust that starts with the first phone call. Yasir Saeed is a successful Great Clips franchisee, with salons in Sherwood Park and Fort Saskatchewan. When he filled out an interest form on the Great Clips website, he was impressed by the call he received the next day from the Great Clips, Inc. development team. “Talking to my development manager was amazing,” says Yasir. “He gave me the information I was looking for. I’m a numbers person so I was really impressed with all the data and stats he had. He didn’t rush me, and he made me feel so comfortable.” “I was also exploring other franchises and all they wanted to know about was my bank account. With Great Clips, they
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cover stor y
G re at Clip s
wanted to know about me, the person,” says Yasir. “It was awesome.” Franchisee John Kellett owns 12 Great Clips salons in the Toronto-Hamilton and Peterborough markets. When he was looking for a franchised concept that would enable him to leave the corporate world and own a manager-run franchise, Great Clips was “the right platform and the right partner,” he says. He most appreciates the lifestyle and financial rewards Great Clips has provided him during his 11 years with the brand.
High-Tech Leader in the Haircare Industry Great Clips was the first in its industry to use technology to support brand delivery and growth, and improve the experience for franchisees, their salon teams and their customers. In 2011, the company launched the Great Clips app, the first of its kind in the haircare industry. It was a game-changer, largely due to Online Check-In, which allows customers to find salons near their current location and view wait times for each salon. Customers can add their name to the list without having to wait at
the salon. Today, more than 12 million customers have downloaded the Great Clips app. Great Clips also gives franchisees technology to help them manage and grow their business, with web-based business intelligence tools, an advanced POS system and a tablet-based app that
delivers key operational data for every salon in real time. Franchisees have the right information at their fingertips, anytime, from any place.
Giving Back Great Clips challenges corporate staff, franchisees and friends to give back to the people and the communities where they live and work. Through the Great Deeds® program, Great Clips contributes millions of dollars to great causes every year, including Children’s Miracle Network Hospitals, Wigs for Kids and Clips of Kindness, as well as programs that support veterans and domestic violence prevention. “Since the first franchise opening, Great Clips has had a rich history of embracing neighbourhoods across North America,” says Great Clips, Inc. president Rob Goggins. “We always encourage our salon owners to be active community members. Our franchisees’ community spirit has been the key to our success.” The Great Clips brand is looking for engaged, active entrepreneurs in Canada, especially in the growing markets of the National Capital region of Ottawa and the city of Winnipeg. To learn more about this opportunity, visit https://www.greatclipsfranchise.com
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ex per t advice
The Canadian Franchise Association (CFA)
Helpin
the
What is the Canadian Franchise Association? Back in 1967, as Canada’s centennial was being cele¬brated, a group of franchise business owners recognized a need for a national umbrella organization committed to the growth, enhancement, promotion, and development of ethical franchising across the country. The Canadian Franchise Association (CFA) was founded with this mis¬sion and principles and is now the only national trade association serving the franchise industry and the needs of franchisors, franchisees, and anyone considering opportunities in the franchise sector. The CFA is now the recognized authority on franchising in Canada, and rep¬resents over 700 corporate members across the country, including iconic Canadian brands such as Pizza Pizza, M&M Food Market, and McDonald’s Canada.
Our purpose: To help everyday Canadians realize the dream of building their own businesses The CFA’s mission is to amplify the understanding and power
Page 10
Canadian Franchise Magazine
ng everyday Canadians realize
e dream of building their business through franchising of franchising in Canada by advocating on the issues that impact this dream, connecting people with opportunities in franchising, and delivering learning opportunities that make the industry stronger. The CFA produces the annual Franchise Canada Directory, and Franchise Canada magazine, considered the country’s most trusted franchise resources. The bi-monthly magazine is available at CFA tradeshows and events, on newsstands, in Air Canada Lounges, and through subscription. Prospective franchisees can also learn more about franchising through the Franchise Canada Chats podcast, now in its second season, and Franchise Canada TV, which features interviews and informational videos. The Association also offers Canada’s only tradeshows that exclusively fea¬ture CFA member franchise systems. Promoted as The Franchise Canada Show, this event features some of the biggest names in franchising, and is held in major cities across the country. The CFA’s Franchise Canada resources can be found online at www. FranchiseCanada.Online. The CFA’s wealth of knowledge flows, in part, from its prominent role in the nation’s business community. CFA members represent more than 40,000 business outlets across the country. As a whole, the fran¬chise industry employs
well over a million people. About half of these employees work under the banners of hun¬dreds of CFA member franchise systems.
What can the CFA do for you? One of the CFA’s primary roles is to help prospective franchisees make the best decision when investing in a franchise by providing resources and education about franchising. The CFA’s websites (www.cfa.ca, www. LookforaFranchise. ca, and www.FranchiseCanada.Online) offer valuable information and resources about fran¬chising, as well as detailed listings in its online member directories. Directories are separated into franchise sys¬tems and franchise support services providers (e.g. fran¬chise lawyers, accountants, consultants, etc.). CFA members represent a diverse crosssection of franchise systems in Canada, ranging from very large, established operations to smaller regional concepts. When you deal with CFA members, you can be confident you’ll be treated fairly because all members must adhere to a strict Code of Ethics. Franchisors can become mem¬bers only after they undergo a review process performed by a committee of their peers. Members join the CFA voluntarily, as franchise sys¬tems are not obliged to belong to any trade organization. CFA members share the conviction that
their commit¬ment to excellence in franchising improves the industry as a whole for everyone involved, including franchisors, franchisees, suppliers, and customers. Realistically, however, what the Association can’t do is protect potential investors from making bad business decisions. The CFA does not have specific punitive pow¬ers to use against members if they violate the Associa¬tion’s Code of Ethics. Members, however, may use the confidential, complimentary services of a thirdparty & neutral Ombudsman (available through www.cfa.ca) to help resolve disagreements between franchisors and franchisees. We fulfill our mission through our four brand pillars – leadership, trust, credibility, and opportunity. Through these pillars, we create a unified force that represents different elements coming together to create and grow as a multifaceted whole. Working under the motto of “Growing together,” we embrace the concept of grow¬ing your business with the support of the greater fran¬chise community through CFA membership. This holds true to the concept of franchising – that franchisee and franchisor grow their businesses through partnership. Together, we all grow our businesses, our expertise, and our ability to advocate for a thriving future.
Page 11
ex per t advice
The Canadian Franchise Association (CFA)
• Mentorship program • Members-Only Resource Area on www.cfa.ca For Prospective Franchisees: The CFA helps prospective franchisees learn about the franchise business model, as well as specific franchise opportunities, through resources such as: • The CFA’s official online franchise directory (LookforaFranchise.ca) • Online resources, like Franchise Tutorials • Franchise Canada magazine • Franchise Canada Directory • Franchise Canada website (FranchiseCanada.Online) • Franchise Canada TV • Franchise Canada Chats podcast
Quick Look: The Canadian Franchise Association
Franchise System Members:
ABOUT US
• Member franchise systems can be found in more than 50 different business categories and sectors.
• Founded in 1967, the CFA is the only national trade association for franchising in Canada. • The CFA is the authoritative, recognized voice for franchising in Canada, and the indispensable resource for the Canadian franchise community. • The CFA advocates on behalf of franchisors and franchisees to enhance and protect the franchise business model. • The CFA promotes excellence in franchising and educates Canadians about franchising, specific franchise opportunities, and proper due diligence through its many events, programs, publications, and websites.
ABOUT OUR MEMBERS CFA members represent a diverse crosssection of Canadian businesses, ranging from large, established franchise systems to smaller, regional systems, as well as professionals and organizations that provide support services and supplies to the franchise sector. In joining the CFA, members commit to pursuing excellence and voluntarily adhere to the CFA Code of Ethics.
Page 12
• Companies that are offering franchises in Canada.
Franchise Support Services/Suppliers Members: • Persons or companies engaged in providing products and/or services to franchise systems and franchisees. • Support services/suppliers include, but are not limited to, accounting firms, legal firms, consultancies, insurance providers, and financial institutions.
PROGRAMS AND SERVICES For Members: The CFA offers its members exclusive programs and services, including: • Promotion of excellence and growth in franchising • Industry credibility • Advocacy and government relations • Free, confidential ombudsman program • Awards programs • Educational programs and networking opportunities, including full-day seminars, webinars, and annual national convention • Member savings program
• The Franchise Canada Show tradeshows • CFA Starter Kit
So Many Opportunities Made up of thousands of small businesses in every community from coast to coast, the franchising sector is the 12th largest contributor to the Canadian economy. The Canadian franchise industry is estimated to have over 1,200 brands and more than 76,000 franchise locations across a variety of sectors. While franchise concepts operating in the food service category dominate the industry, there’s more to franchising than just fast food. You’d be hard-pressed to find a Canadian neighbourhood devoid of a franchise business serving its residents. With franchise systems operating in more than 50 different sectors, Canadians from coast to coast are interacting with franchise systems daily, from coffee shops to cleaners and day cares to restaurants, hotels, and so much more, the franchise business model is an important part of Canadians’ day-to-day lives.
Canadian Franchise Magazine
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Page 13
ex per t advice
Lori Karpman | President | Lori Karpman & Company
THE TOP 10
FOOD AND BEVERAGE TRENDS FOR 2020
2020 is going to be a banner year in the foodservice industry with many new food and beverage offerings. Here’s a roundup of the Top 10 dining trends for 2020. #1 The Plant Ecosystem Over the past few years many people have made the switch from meat and dairy to plant-based foods. Meat and dairy flavors are now being replaced with flavours from non meant and dairy products such as soy, peas, cashews, and almonds, tempeh, mushrooms and beans. This does not mean that traditional proteins are going away anytime soon but you will see an increase of plant-based food concepts. Plant based menus are blooming!
#2 Cannabis It is no surprise that Cannabis is one of the fastest growing categories for products of all kinds. CBD is the nonpsychoactive compound in cannabis so it will not get you high but can help with pain, anxiety and lack of sleep, or so they claim. CBD drinks have become very popular and come in the form of waters, teas, and wine. Snacks of all kinds abound from chocolate bars to lavender almonds to lemon poppy seed cookies and whipped CBD infused honey, the list just continues to grow exponentially.
#3 Snacks Chips have always been considered
Page 14
an unhealthy snack option but these days new and better for you snacks are emerging. Using ingredients like chickpeas, beets, quinoa, and kale, these snacks make snacking healthier even if you eat the whole bag! They may not be the most appealing aesthetically, but they effectively satisfy snack cravings.
#4 Fruit The newest go-to meat substitute is jackfruit. Already being used as an alternative for barbecue pulled pork, jackfruit is a southeast Asian fruit that is a great source of iron, calcium, and B vitamins. The texture of jackfruit mimics the texture of pulled pork and will soon become a force in the food industry as a meat alternative.
#5 Diary The current favorites of almond and soy, have been challenged by a new entry, oat milk. It’s great in coffee and other beverages and stores can barely keep it in stock. Watch for a series of oat milk products to hit the market and for coffee shops to begin offering it as an option.
#6 Beverages Consumers who are concerned about sugar but still want to satisfy their craving for carbonation are turning to flavoured sparkling water, and the choices are growing exponentially. All of the big beverage brands are getting in on this trend. Consumers are open to exploring more unique fruit flavor varieties, including bergamot orange, yuzu, makrut lime, pomelo, Meyer
Lori Karpman
lemon, and blood orange. For a few years now, drinks and supplements containing collagen — a protein that provides the structure for our skin and organs — have been growing quickly.
#7 Sustainability in Packaging As you have seen in the news climate change, disappearing rainforests and plastics in the ocean are dominant topics. Consumers are now demanding sustainability especially in packaging. It can be as simple as replacing Styrofoam and plastic for paper or bamboo or cotton, or buying ingredients from sustainable sources, sustainability in food and packaging will be a key trend to watch for in 2020.
# 8 Snack Balls! Balls are in! No, not baseballs, snack balls. They are little round balls made of ingredients such as dates, nuts, peanut butter and coconut rolled into a ball,
Canadian Franchise Magazine
and sold in a package. These are geared towards the keto and paleo market, but they are being consumed by everyone. You will see them popping up in all sorts of food stores and cafes. There are oat balls for breakfast, balls of protein made for energy and others. These are great afternoon, pre or post workout treats.
# 9 Eat-ertainment
“2020 is going to be very interesting in the foodservice industry as food and beverage manufacturers and vendors are constantly creating new and different options for consumers to learn about and enjoy!�
Dining out is more than just eating. From the moment a reservation is made to leaving the restaurant, the consumer has a series of mini experiences that impacts whether they return or not. As more and more people move away from collecting things and toward gaining experiences, restaurants must look for ways to provide a memorable experiences from check in to check out. Serving good food is simply not good enough anymore, the dining experience should offer such things as rewards, adventure, fun, surprise and entertainment in order to connect with the emotional needs of customers.
# 10 Convenience Thanks to the ever-increasing pace of life, the meal delivery service market is expected to grow by 15% through 2020. Meal delivery, in the form of a onetime order or of a box of ingredients are predicted to grow significantly in 2020 as are convenient, eat-on-the-go food. Additionally, some brands even have in store portals where customers can pick up their food after having made and paid for an online order. This significantly reduces labour costs. Expect to see this trend grow as consumers who are time strapped demand products that are healthy and ready to eat. 2020 is going to be very interesting in the foodservice industry as food and beverage manufacturers and vendors are constantly creating new and different options for consumers to learn about and enjoy! Lori Karpman is president of Lori Karpman & Company, A full service firm providing a full range of consulting and legal services. For more information: (514) 481-2722 e-mail at lori@lorikarpman.com www.lorikarpman.com
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FOCUS
Stagecoach
Stagecoach
report record-breaking international student numbers impact on student numbers, allowing our franchisees to really capitalise on this growth. In September alone our International business grew by just under 15%. Outside of the UK we opened 12 new schools and classes and we launched in four completely new territories. We expect to accelerate this rate of international growth well into 2020.” One such franchisee who has benefited from the increased market demand is Kristi Wenaus. Before the former Business Development Manager launched her franchise in Halifax, Nova Scotia she welcomed prospective students to a Stagecoach taster session on the 14th September.
Stagecoach Performing Arts, the children’s performing arts franchise with a global presence in eight countries, has reported incredible growth in student numbers and retention in their International markets. With multiple new franchises launching in Canada and Germany in time for the September term and expansion on an international scale, franchisees are profiting from the brand’s well-respected name. Student numbers have consistently increased over the last six consecutive terms, with over 48,000 students now
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attending more than 2,000 schools and classes, operated by 350 franchisees across eight countries. The demand for extra-curricular performing arts opportunities for children continues to increase, as opportunities in mainstream education fall below parents’ expectations. “What we’re seeing more and more, both in the UK and on an international scale, is that parents are more than happy to invest their earnings in activities for their children which offer personal development as well as being fun,” explained Andrew Walters, Director of International Business Development at Stagecoach. “Our presence around the globe is increasing, with more families thinking of us as the go-to performing arts provider. This is having an incredible
“I couldn’t believe how many people came along to that first Discovery Day,” said Kristi. “With the support of Stagecoach head office, I’d worked really hard to promote the fact that a new school was coming to the area but nothing could have prepared me for just how many families showed up. That gave me a great idea of how many students to expect when the time came for enrolments. As I’d hoped, I was inundated with enquiries from parents, looking to sign their children up for their first term. We’ve already had our first few sessions, which have gone really well, and the calls are still coming in. My long-term goal is to open five schools in five years and, if these initial few weeks are anything to go by, I’m set to achieve that.” Stagecoach will continue to rapidly strengthen its network of franchisees in Canada, Germany and Australia and expand to new markets. With plans for large-scale expansion due to come into
Canadian Franchise Magazine
fruition in early 2020, enquiries from international prospects are coming through thick and fast. “It’s an exciting time for us, in terms of growth on a worldwide scale,” continued Andrew. “We’re delighted to see such a variety of talented and dedicated prospects enquiring about our opportunity. Many of our new franchisees have either worked in performing arts or have been performers themselves but experience in the performance sector isn’t necessary. As long as these prospects are passionate about improving the lives of children and have the desire to develop a successful business of their own, they’ll enjoy the work and rewards of being a Stagecoach franchisee.”
“What we’re seeing more and more, both in the UK and on an international scale, is that parents are more than happy to invest their earnings in activities for their children which offer personal development as well as being fun.”
To speak with Kristi Wenaus or Andrew Walters, contact Kelly Ayres at Rev PR on 07895 876745 or email kelly@revpr.co.uk For more information, visit www.stagecoachfranchise.com
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ex per t advice
Lora Kellogg, CFE | President and CEO | Curious Jane
How Your Company’s Culture Can Help You Recruit Better Franchisees We all know that a strong company culture is a great differentiator for brands, but did you also know that culture also can be a terrific tool for franchise development? Culture serves as both your biggest selling point and a benchmark for developing a strong marketing persona and selecting candidates who will best fit into your franchise. Culture reflects the values, standards and beliefs of a company and its members. In a franchise system, it is critical that franchisees not only believe in a company’s culture but also act to ensure the culture evolves in a way that is consistent with the company’s mission and core values.
How can your company’s culture aid in franchise development?
systemwide commitment to culture helps attract franchise candidates whose values and interests align with the franchisor’s. Faith-based franchises, for instance, generally attract prospects who are seeking a business opportunity with a company that shares their personal values. Those prospects also may be attracted to the company leadership’s openness about their faith. Because the candidates are closely aligned to the brand’s values, they are likely to be active, hands-on owner-operators. Top candidates are unlikely to be investors who are seeking simply to add to their portfolios; those folks won’t be a culture fit, so they probably will look somewhere else. Likewise, a franchise whose culture is built around passion for a particular product or service is likely to attract people who want to convert their favorite pastime into an entrepreneurial venture. Some franchises find that their most enthusiastic franchisees are former customers who became their biggest fans.
Attract Like-Minded Franchisees
Deter Those Who Aren’t A Good Fit
The franchisor’s vision for the company trickles down, and ideally, that vision should be reflected in your culture. A
Your culture also can help you weed out prospects who are not aligned with the franchisor’s vision. One franchisor
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recently noted that it’s a red flag for him when a prospect says he wants to put his own “twist” on the franchise concept. It’s important to bring in franchisees who will stay true to the business model and culture. Especially for emerging brands, it is critical to select franchisees who are on board with your vision. A brand’s earliest franchisees can dramatically affect how its culture evolves. Culture fit should be a requirement for candidates who want to become franchisees. In fact, we recently worked with a large automotive brand on a franchise development campaign, and one of the headlines we used was, “Do
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you have what it takes?” We listed seven prequalifying traits on their landing page to weed out people who were just “kicking tires.” Our philosophy is that it’s better to get fewer qualified leads than to chase down hundreds of unqualified leads.
Keep Your Team on Track Finally, culture can be a checkpoint to keep your team unified. Both franchisors and franchisees may reference company culture to weigh decisions with farreaching implications or to quash choices that are outside the brand’s standards. Leaders can use culture to elevate the company and to hold each other accountable.
A positive company culture can help you attract the right franchisees, and it also can keep current franchisees happy and aligned with the franchisor’s vision. That’s a huge win, because happy franchisees will work tirelessly to grow the business and to refer the brand they love and believe in to other prospects. Lora Kellogg, CFE, is president and CEO of Curious Jane, an ad agency specializing in franchises. With more than 15 years of experience and a portfolio of top brands, she and her team work with established and emerging franchises to grow sales, increase traffic, build brand awareness and generate leads.
Lora Kellogg
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focus
G o o d E a r t h C of fe e h o u s e
Good Earth
Gingerbread families feed local Food Banks It’s never been sweeter to give back! At Good Earth Coffeehouse, one family can help another. Looking for that perfect Holiday gift? Look no further than your local Good Earth Coffeehouse, with a gift that keeps on giving. Good Earth Coffeehouses’ (Good Earth) highly anticipated Gingerbread Family cookies are back. For every package of Gingerbread Family cookies sold, Good Earth will donate $1 to local food banks. “Our Gingerbread Family program transforms a traditional holiday treat into a sweet way to help others,” said Nan Eskenazi, Good Earth co-founder. We have always been passionate about helping the communities we serve, through our do-good feel-good initiatives. At Good Earth, the ‘why’ is at the heart of everything we do. We believe in making choices that have a positive impact that can do good and offering choices that feel good.” According to Food Banks Canada, Canadians made 1.1 million visits to food banks per month last year. This means that every single day of the week, individuals in this country are struggling to provide meals to nourish their families. Last year Good Earth raised $10,877 for local Food Banks with their Families Feed Families campaign. Good Earth is to raise over $11,000 to support families in need through local food banks this year, with the goal to relieve hunger today and prevent hunger tomorrow. For
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Canadian Franchise Magazine
“Good Earth coffeehouses across Canada love getting involved in this tasty Holiday program. “By supporting the #FamiliesFeedFamilies program we directly impact the trajectory of our community.”
every dollar raised, local food banks can provide three meals. From November 12 to December 31, Good Earth Gingerbread Family cookies can be purchased in all Good Earth locations across Canada. You can also share the love on social media! Canadians can double their donation by sharing a photo of their purchased Gingerbread Family cookies with the hashtag #FamiliesFeedFamilies on Facebook, Twitter, or Instagram. Good Earth will donate $1 for every social media post up to $2,500. “We love that our guests engage with us to support our local foodbanks at this time every year. Our Gingerbread Family cookies campaign has become a very important initiative that supports our communities in need,” said Michael Going, Good Earth co-founder and CEO. “Supporting our communities, especially during the Holiday season, is something that is very meaningful for our customers and our entire Good Earth team.” Each Gingerbread Family package includes a trio of fresh-made cookies – the perfect stocking stuffer. These holiday treats are available at all
Good Earth locations and can also be purchased online by visiting www. goodearthcoffeehouse.com/we-cater/ order-online. Good Earth coffeehouses across Canada love getting involved in this tasty Holiday program. “By supporting the #FamiliesFeedFamilies program we directly impact the trajectory of our community. Like ‘time travel’, but in reverse – we can radically change the future by doing something small in the present,” said Erin Rae Brockmann, Operator at Good Earth Coffeehouse at the Royal Jubilee Hospital in Victoria, British Columbia. “It’s such a fun initiative and a wonderful way for our team to give back.” Good Earth Coffeehouse attracts franchise partners and customers who share their values, commitment to sustainability and giving back to the communities they operate in. In British Columbia, Good Earth has franchise opportunities in beautiful Broadmead Village in Victoria, in the charming town of Colwood and just across from popular Gyro Beach in Kelowna. These brand-new Good Earth coffeehouses will feature a warm and
inviting vibe. The Canadian franchise also has general opportunities coming up in Winnipeg in 2020. If you are passionate about great coffee, wholesome food and your community, learn more about franchise opportunities with Good Earth Coffeehouse by clicking here (https://goodearthcoffeehouse. com/franchising) or email franchise@ goodearthcoffeehouse.com.
About Good Earth Coffeehouse: Good Earth is a network of authentic coffeehouses with 51 locations throughout Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, and Ontario. The first Good Earth Coffeehouse opened in Calgary in 1991. Founders Nan Eskenazi and Michael Going began with a desire to serve exceptional coffee and wholesome food, with a down-to-earth attitude. Good Earth has focused on creating a unique experience for customers through the combination of a distinctive coffeehouse environment with social and environmental responsibility. The company has grown through franchising and remains true to the original mission... to be a coffeehouse with good food.
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ex per t advice
Edward (Ned) Levitt | Partner | Dickinson Wright LLP
F ranchising in C anada
2020 and Beyond As the 2020 New Year starts to take shape and we begin a new decade, it is natural to wonder about how things will change and what will remain the same. Franchising, as business growth model, will continue to be looked upon as a viable option and not just a novel approach for the brave and innovative. There has never been a time in our history when we have had the depth of business and professional knowledge about how to launch a successful franchise program than we have today. This meshes beautifully with the exploding interest in entrepreneurship and the comfort and confidence that would-be franchisees have in franchise ownership. Increasingly, the average age of franchisees is shrinking, as the purchase and operation of a franchised business is being recognized more and more as a lifetime occupation, not just a means to a comfortable retirement.
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Canadian franchisors are becoming braver and more confident about expanding their systems beyond Canada’s borders. At the same time, the World has discovered Canada as a viable market for international expansion, as well as a logical starting point for a North and South American expansion. Technological advances will benefit the growing Canadian franchise market and present challenges, all at the same time. Franchise marketing programs will have to adapt to the rapidly changing demographics. There will also have to be a greater recognition of ethnic tastes and preferences, as Canada’s diversity continues to increase. Franchisee recruitment programs will continue to change at a breakneck pace. The Internet will continue to outpace the classic franchise show option. The trend away from unit franchising to multi-unit, area development and master franchising will not only continue, but accelerate in the near future. Mergers and acquisitions and public listings of franchise companies
will continue to grow, reflecting the increasing number of franchisor’s reaching retirement age and the growing interest in franchise companies by investors. The franchise legal landscape has achieved a level of calm, with no expectations of dramatic changes to the number of provinces with franchise legislation and no real momentum for dramatic changes to these statutes. On the other hand, franchisees are increasingly willing to seek their remedies in court when things go wrong and there is an increasing number of lawyers who have familiarity with franchise law and the ability to challenge franchisors successfully. For specific market segments that are embracing franchising more frequently than others, it is interesting to observe that the opposite ends of the life spectrum are the hottest areas for franchise activity, i.e. anything to do with seniors and anything to do with children. Aging baby boomers are rapidly approaching their most medically
Canadian Franchise Magazine
anada :
Edward (Ned) Levitt
“Canadian franchisors are becoming braver and more confident about expanding their systems beyond Canada’s borders.” challenging years and desperately want to avoid living their final years in an institution. Medical systems are stretched to the limit, if not nearly bankrupt. Patients are being discharged from hospitals quicker and sicker. What a time to be in the homecare business! For children in 2020 and beyond, gone are the days of playing board games and trading collectible cards— now, the 21st-century child matures in a whole new world of innovative play, learning and discovery. Driven by a growing awareness of the real needs of children for them to achieve their fullest potential and budget cuts for school programs, parents are constantly looking for ways to keep kids enriched, entertained and active. In response, child-centered businesses have begun to sprout all over North America. Fortunately, for interested business people, the industries of recreation, fitness and education are not just child’ s play; they also make for sound financial investments. The movement towards the legalization of recreational cannabis has been greeted
by the business world with a rapture reminiscent of the U.S. gold rush of the 19th century and the worldwide .com fixation of the 20th century. As governments are trying to figure out what controls they wish to impose on such things as production, quality, location of retail outlets, advertising and driving under the influence, entrepreneurs and investors everywhere are throwing buckets of money at all kinds of business ideas (hopefully opportunities) that are not proven and ripe with unprecedented risk. Without much delay, the franchising class has spotted an opportunity and jumped into this new, uncertain, highly regulated and rapidly evolving market segment with vigor. Canada’s franchise market is growing rapidly and changing every day. New industries are discovering franchising and societal changes are challenging the traditional beliefs about how to expand a business through franchising. Canada, for so many reasons, is uniquely positioned to benefit from these changes, but with the benefits comes risk.
Edward (Ned) Levitt is a Certified Franchise Executive, a partner at Dickinson Wright LLP, Toronto, Canada, and provides legal services to Canadian and international clients on all aspects of Canadian franchise law. He was General Counsel to the Canadian Franchise Association (20002007) and is a member of the American Bar Association Forum on Franchising, the International Bar Association and the International Committee of the International Franchise Association. As a member of the Ontario Franchise Sector Working Team, Ned was instrumental in the creation of Ontario’s franchise legislation and has had significant input in the franchise legislative process throughout Canada. Among his many publications is the leading text, Canadian Franchise Legislation (2001, LexisNexis/ Butterworths). Ned can be reached at 416.646.3842 or nlevitt@dickinsonwright.com.
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ex per t advice
Joseph Pisani | Director North American Industry Sectors, Franchise Finance | BMO Bank of Montreal
Where to start and
how to succeed with a franchise business
If you want to start your own business, a franchise can be a great way to increase your chances for success. As a franchisee in a major network, you can expect to benefit from professional marketing, national advertising, specialized training, and centralized purchasing. As well, you are statistically more likely to succeed with a wellestablished franchise than with a nonfranchised independent business. To get started, it’s important to have a holistic view of the franchise experience – including what you need to know at the beginning all the way to what is needed to sell.
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Where to start Getting started on the right financial footing will set the tone. A good rule of thumb to follow is to make the initial investment – which includes your franchise fee as well as some of the soft costs like legal and insurance – at a minimum of 30 per cent. This will help reduce the cost of borrowing, especially in a rising interest rate environment. It’s also important to look to your personal finances and make sure they are in order. It’s possible that you may not be able to rely on the business for income in the first few years. Have a plan in place and anticipate that the business may also become a burden. This can be a good time to work with a business bank
that understands the needs of a franchise. Further, it’s a good rule of thumb to have, approximately, three months’ worth of salary tucked away in case you hit a particularly bumpy patch.
How to succeed When choosing a franchise, it’s common for prospective franchisees to consider growth potential. Fundamental to this choice is an understanding that a franchise will always, at least in part, be dependent on the franchise brand. Look for a franchise that’s a good fit for you and make sure you find a business model that you’re eager to commit to. You also need to consider the implications of hiring staff; this requires
Canadian Franchise Magazine
“To get started, it’s important to have a holistic view of the franchise experience – including what you need to know at the beginning all the way to what is needed to sell.”
Joseph Pisani
understandable that selling your franchise is the last thing on your mind when you’re setting it up, seeing the whole journey of ownership – including its end – must be an integral part of your business plan.
an understanding of human resources and payroll practices. When you set up your franchise business, you can make use of the payroll services that many banks provide to accommodate small enterprises and start-ups. As your company grows, you can transition to a payroll company – doing so provides the benefit of freeing up time for you and your staff to concentrate on actual business operations. Consider, too, ways of keeping your staff happy. Talent retention can be a challenge, especially for a new and growing business. Do what you can to keep your team engaged; this leads to staff who are more loyal and invested in the company, which helps keep turnover to a minimum.
A small reminder: lean on the franchisor. Something that is often overlooked is the support provided from the franchise itself. A franchisor wants its franchisees to be successful and build a strong reputation for their brand. Support is typically provided in areas such as hiring, scheduling, and training team members, as well as in marketing and brand awareness. Take advantage of anything the franchisor is willing to provide. As much as a franchise may – at times – feel independent, there is a team behind the business ready to provide support.
Closing the door on your franchise Finally, you need to consider the end of your ownership. While it’s
As part of your search for a franchise network, you should ask about succession – get an understanding of what is permissible and how the process works. There may be restrictions on a sale; a franchisor may insist you can sell only to itself at a pre-determined formula, while another may allow you to sell to the open market with its approval and final say. Succession might be another option; if your franchise is meant to be a family business, you need to be aware of how your business decisions affect the value of your asset over a longer time horizon. Speaking to a wealth manager or estate planner will help you get your affairs in order. Canada’s franchise industry is demonstrating an excellent level of growth. Done right, you can make a success of an exciting opportunity for business ownership. Joseph Pisani is the Director North American Industry Sectors, Franchise Finance for BMO Bank of Montreal (BMO). Visit bmo.com/franchising for more information.
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snapshot
J ef f d e B r u g e s
It’s moving day for Jeff de Bruges!
day for Jeff de Bruges Inauguration of theIt’s moving new Montreal Eaton Ce Montreal Eaton Centre store
Montreal, October 24, 2019 - French master choc boutique located on the first floor of the Montreal E Out Market, will officially open its doors to chocolate
PRESS RELEASE For immediate release
It’s moving day for Jeff de Bruges! Inauguration of the new Montreal Eaton Centre store Montreal, October 24, 2019 - French master chocolatier Jeff de Bruges is moving! The new boutique located on the first floor of the Montreal Eaton Centre, near the long-awaited Time Out Market, will officially open its doors to chocolate lovers on October 26th.
French master chocolatier Jeff de Bruges has moved! The new boutique located on the first floor of the Montreal Eaton Centre, near the long-awaited Time Out Market, officially opened its doors to chocolate lovers on October 26th.
For more information about Jeff from Bruges Canada, follow us on social media at https://www.facebook.com/jeff. de.bruges.canada
Canadian Franchise Campaign
Temporarily located at the metro level of the Mont Telephone Booth stores, Jeff de Bruges will soon b Mode gallery. The old store has closed to the pub transition to the upper floor space.
As of October 26th, the new Jeff de Bruges bouti lovers in a new and improved gourmet setting. All a master chocolatier’s refined sweets in the heart of th
Focusing on personalized service and an unparalleled customer experience, Jeff Jeff de Bruges in Canada de Bruges charms its customers with With more than 500 stores, including 472 in France, quality products, seasonal exclusivities, in the chocolate industry. In addition to the boutique and a passion for the profession. Wishing Bruges kiosk offering delicacies from Belgian and F to expand its presence in the North metro level of the Carrefour Industrielle Alliance. Fo chocolate experience. leader in themedia at American market, the brand launched Bruges Canada, followAus on social Temporarily located at the metro level of the Montreal Eaton chocolate Centre next to thefor Koodo European industry over and https://www.facebook.com/jeff.de.bruges.canad its franchising campaign in Quebec and Jeff de Bruges in Canada Telephone Booth stores, Jeff de Bruges will soon be relocated to the former Les Ailes de la 30 years, the brand now has 509 stores Ontario. With more than 500 stores, including 472 Mode gallery. The old store has closed to the public on October 23rd in anticipation of the worldwide, including 472 located in Fortomore information about the Jeff de the upper floor space. in France, Jeff de Bruges has a strong transition France. Bruges franchise offer, visit www.jeff-dereputation in the chocolate industry. In bruges-franchise.ca/ Offering a unique bar chocolate concept 26th, the new Jeff de Bruges boutique will be ready chocolate to welcome addition to the boutique located at the As of October and an ice cream counter with seasonal lovers in a new and improved gourmet setting. All are welcome to discover or rediscover the Eaton Centre, a Jeff de Bruges kiosk About Jeff de Bruges master chocolatier’s refined sweets in the heart of the Montreal Eaton Centre! flavours in partnership with the Bilboquet offering delicacies from Belgian and ice cream parlour, the brand is building French traditions is also located at the Jeff de Bruges is a master chocolatier Jeff de Bruges in Canada strong alliances with major players on the metro level of the Carrefour Industrielle combining French creativity and Belgian With more than 500 stores, including 472 in France, Jeff de Bruges has a strong reputation local scene. expertise, for a gourmet but accessible Alliance. The new Jeff de Bruges boutique welcomes chocolate lovers to discover or rediscover the master chocolatier’s refined sweets in a new and improved gourmet setting in the heart of the Montreal Eaton Centre!
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in the chocolate industry. In addition to the boutique located at the Eaton Centre, a Jeff de Bruges kiosk offering delicacies from Belgian and French traditions is also located at the metro level of the Carrefour Industrielle Alliance. For more information about Jeff from
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ex per t advice
Steve Tallis | Co-founder | Starks Barber Company
Finding the Right Franchise for You
As a potential franchisee you need to vet yourself just as you would vet the business you’re looking at buying. Make sure your values, goals and lifestyle are inline with the business and brand that you want to partner with. Buying a franchise isn’t like buying a car and driving off the lot with it, you’re getting into business with the franchisor for a very long time. I talk to potential franchisees everyday and there are people who I believe will make great small business owners, but are simply not the right fit for us. Everyone has a skill-set. Businesses succeed when people of a certain personality and skill-set are the right match for the business.
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Canadian Franchise Magazine
“Everyone has a skill-set. Businesses succeed when people of a certain personality and skill-set are the right match for the business.”
Here are some basic questions to ask yourself (and a prospective franchisor) during your quest to find the franchise that is the best fit for you.
great financial or business acumen, but if they don’t like interacting with people, they likely will not meet our criteria during the selection process.
1
4
Am I looking to put my money to work for me, or for something more than that?
Buying a vending machine franchise can provide a simple return on your investment, but you can’t add any value to a business like that. If you’re feeling stifled in your job and want to be more creative as you make the leap into entrepreneurship, consider finding a brand or product that you can get excited about.
2
Is this a business or a job?
A lot of franchise models require you to work in the business if you have any chance of replacing the income from your former job. This model works for a lot of people/families out there, but if your ultimate goal is to have more flexibility or to own multiple units, you need to make sure you’re buying a business that can succeed without you working in it. Perhaps a model where you’re best used training others and spending the rest of your time on things like marketing and PR.
3
What are the key drivers of revenue in the business and do they suit my personality?
A friend of mine is a self-proclaimed introvert. He found his niche as the owner operator of a successful junk removal franchise where 90% of his workday is spent in solitary labour. Customers are handled by a call center and his interaction with his employees is mostly over the phone. In contrast, our business is about creating a great customer experience and building culture with the staff. A person may have
Does the business fit my lifestyle?
If you love sports and think a sports bar is a good fit, consider first whether you want to spend evenings and weekends working, or with your family and at the cottage. If so, a sports bar is probably not the right call for you.
5
Is the business tech proof?
Watch out for technology, it gobbles up businesses and industries quickly and can turn the next great thing obsolete void of any value. That said, with the emergence of ecommerce behemoths and online shopping, people are craving a great experience more than ever. As the old saying goes - necessity is the mother of invention. Look for franchises that are using the current climate as an opportunity to fill a void for consumers.
6
What are the franchisors goals?
As I mentioned earlier, when you buy a franchise, you’re getting into business with people and those people are your support system. You need to make sure their values and goals are in line with yours. If you’re going to work hard on building your business, you want to know they’re going to work hard on building the brand. During our journey with Starks I’ve sought many mentors with decades of franchising experience and while they all have pearls of wisdom, there is one common denominator everyone comes back to and it is this: the franchisees that succeeded were a good fit for the business and the brand. The franchisees that failed were not.
Steve Tallis
Our philosophy is that we don’t sell franchises, we award them to people who believe in us and are a great fit for our brand. What you need to find is something you’re passionate about and compliments your skillset, your values and will help you achieve your goals. People buy franchises because they want to buy into a system. For the most part, established and almost perfected systems like McDonald’s or Tim Horton’s are already spoken for. Where you will find the biggest success is in a business model that’s striving for that. As a franchisee you will help them expand and refine their system. Look at what the business is and what it could become. Ask the franchisor what their plans are and where they see the business in five, 10 or 20years. Then vet yourself first and ask if this is the right fit for you. Steve Tallis is the co-founder of Starks Barber Company, a chain of upscale barbershops with three corporate locations in the GTA, one franchise, and two more franchises opening in early 2020. Starks offers traditional barber services in a modern and sophisticated setting. With things like online booking, free coffee and wifi, and a hot towel massage at the end of every haircut, Starks is turning an errand into an experience.
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ex per t advice
BDO Canada
Canadians seek to save time out; restaurant franchisees profits through efficiency
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Canadian Franchise Magazine
by eating s seek BDO survey reveals less than half (43%) of restaurant owners and operators feel confident current practices provide an accurate picture of financial performance. When it comes to dining, Canadians are opting for restaurants over the kitchen. As restaurant owners and operators keep up with the increasing demand, they are struggling to stay on top of their finances. A new BDO Canada survey, conducted by Environics Research Group, reveals less than half of restaurant owners and operators (43%) feel confident that their current bookkeeping payroll practices provide an accurate picture of their financial performance. “Opening a franchise business may be the easy part, as franchises often come with immediate brand recognition and loyalty. But having the proper team, resources and systems in place to keep it thriving takes time and focus,” says Lyn Little, National Franchise Industry Leader, BDO Canada. “Future-proofing your business, with the right technology and services, for example, isn’t just about getting ahead anymore. It’s about survival. And it has to be done from the get-go.” To find success in an era of razor-thin margins, restaurant owners and operators are seeking to improve efficiency of operations (58%) above increasing annual net sales (51%) over the next five years, according to the survey. For some owners and operators, time is a great concern. The BDO Franchise Restaurant Report 2019 results show that one-in-five respondents don’t have time
“To find success in an era of razor-thin margins, restaurant owners and operators are seeking to improve efficiency of operations (58%) above increasing annual net sales (51%) over the next five years, according to the survey.”
to manage bookkeeping and payroll. One-in-four (41%) note personal time constraints would make them consider outsourcing bookkeeping, too. “Thanks to technology advancements, the opportunity to outsource finance functions that have traditionally been performed in-house represents a far more attractive opportunity for Canadian businesses than ever before,” says Matthew Sturges, Partner and Leader of Outsourcing Services, BDO Canada. “Consumers often notice the benefits, too, as time spent on lower-value added back-office operations can be better used improving restaurant operations, enhancing product quality and overall delivering a better guest experience.” For those that conduct their own bookkeeping and manage payroll, these pain points top the randomized list of choices: • Keeping tabs of books accurately (63%) • Providing timely updates on financial records (51%) • Understanding tax and regulations (46%) • Inexperience in bookkeeping and accounting duties (32%) • Streamlining (23%) With only 43 per cent of respondents outsourcing their payroll and 41 per cent outsourcing their bookkeeping to an
expert, some are likely to struggle with getting a clear financial picture as they navigate a growing industry. To download the report, visit www.bdo.ca/restaurantreport
About BDO BDO Canada LLP is a leading provider of professional services to clients of all sizes in virtually all business sectors. Our team delivers a comprehensive range of assurance, accounting, tax, and advisory services, complemented by a deep industry knowledge gained from nearly 100 years of working within local communities. As part of the international BDO network, we are able to provide seamless and consistent cross-border services to clients with global needs. Over 73,000 people work out of more than 1,500 offices in 162 countries, generating worldwide revenue of $8.1 billion. BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO member Firms.
Page 31
ex per t advice
Wayne Maillet | Founder and Franchise Management Consultant | Franchise Specialists
misconceptions in franchising
Franchising is a business growth model that has been around since the 1890’s. Franchising has contributed to generating employment, stimulating the economy and contributing to the financial success of millions of individuals around the world.
franchising as a result of these misunderstandings, while others acquire a franchise for the wrong reasons. By understanding franchising you will be in a better position to make an informed decision and determine if franchising is right for you.
It has made it easier for anyone with strong desire to get into business for themselves but not by themselves. The franchise growth model has dramatically influenced the economy and has been responsible for generating employment. Every year there are many individuals just like you who take steps to improve their lives by becoming a franchisee.
Often entrepreneurs will not consider a franchise for they feel it is too expensive. They can save money and reduce operating costs by doing the business on their own. They have heard of franchises requiring an investment in the millions of dollars. This is true, especially of some food and retail franchises that require costly equipment, furniture and leasehold improvements. However, today there are franchises available in almost any industry. Some home based franchises require an investment as low as $10,000. One has to access the opportunity that best fits with their budget and will bring
Despite this undisputed success, I am constantly surprised that there continues to be misconceptions or a lack of knowledge regarding franchising. Over my 30 plus years involved in franchising, I have noted many individuals avoid
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Some of the most common misconceptions are as follows:
Misconception: Franchising is too expensive
them personal satisfaction, based on their needs and financial constraints.
Misconception: Franchisors will sell the franchise to anyone who has the money That may have been the case a long time ago when franchising was just getting started but franchisors have now learned that this is not how to build a successful brand. Yes, franchisees are investing their time, effort and savings. But the franchisor is also investing time, effort and their brand. It is a mutual decisionmaking process with good franchisors being selective as to whom they award the franchise to. Both parties must do their due diligence to ensure that this is the right decision and the new franchisee has the best chance for success. This success enhances the value of the brand.
Misconception: Franchising does not allow for creativity Some entrepreneurs will avoid investing in a franchise for they feel that their creativity would be hindered by the
Canadian Franchise Magazine simply acquires the right to use it within the guidelines set out in the license agreement and the operation manuals. A strong franchisor will maintain control over the use in order to protect the integrity of the brand. Uniformity is important to develop the brand and allow the customer to have a consistent experience between franchised locations. At the same time the franchise business model does evolve over time to be competitive and franchisors will typically seek input from franchisees and ensures that all locations are evolving together.
Misconception: A franchise will eliminate risk Wayne Maillet
franchisor putting too many restrictions on the business and forcing complete compliance with the business operating system. In some cases, this is true, and it does require consideration. Franchising may not be right for some people. The reality, however, is that most franchises allow for franchisees to adapt the concept to their market and permit creativity to benefit the system. Many franchisors will allow controlled variations on the system and permit the brand to evolve and develop with the input of franchisees. It is one of the benefits of franchising, where the combined experiences of the franchisees can come up with improvements to the business model that will benefit the system as a whole. The degree of creativity permitted will vary from franchise to franchise, with new emerging systems allowing the most creativity. Research the franchise you are looking at to confirm what is permitted and within what framework.
Misconception: As an owner, I can do whatever I want Just as many franchisors do allow for creativity, it does not allow for the opposite extreme where a franchisee can do whatever it wants once it has acquired the franchise. This misconception stems from an ownership mentality. You must be aware that as a franchisee you are granted a license to operate the franchisor’s business model and use its brand. It is a license to use but does not constitute ownership. A franchisee does not buy the name and logo but
Some entrepreneurs acquire a franchise thinking that they will eliminate risk and be automatically successful. Some misinformed franchisees have false expectations, thinking that they can just open the doors, sit back, and the profits will start rolling in immediately. A good franchise will only reduce the risk. It provides a road map of a proven business formula. It still requires hard work and commitment to building your business. Different franchises will grow at different rates. You need to determine prior to opening your business what will be your growth rate and what will be required on your part to make it successful. Be sure that you are prepared to make the commitment and have set aside sufficient working capital to finance the initial months of the business while allowing you to pay your personal bills. A good franchisor will assist you in the review process and will have you go through an application process to determine if you have the necessary skills to be successful in their particular franchise. A good franchise will only reduce risk. It provides you with a proven business formula. It still requires hard work!
Misconception: The more you invest the greater your dollar return This misconception stems from an investor mentality. It is normal for an investor to expect that if you invest a million dollars you will get a greater dollar return than if you invest $10,000. This formula has not proven to be the case in franchising. You can make a
substantial return on a low investment. Unlike the stock market and other passive investments, a franchise investment and its returns are largely dependent upon you and your ability to implement the business model and effectively manage the business. To accurately assess what the return will be you will want to investigate the franchise thoroughly as well as access your abilities and skills as they relate to the needs of the business. Do not rely solely upon projections if they are provided to you by the franchisor. Contact numerous existing franchisees within the franchised system to find out what profits they are experiencing.
DO YOUR HOMEWORK Franchising has had huge success and has allowed many individuals to achieve their dream and goals. Don’t make your business decision based on misinformation or misconceptions. Not all franchises are the same. Take your time to do your due diligence and find the opportunity that is right for you. Talk to existing franchisees of the system. Use the resources of a franchise consultant, a lawyer and an accountant. Ultimately the business should be a vehicle for you to achieve what you want out of life. Everyone’s dreams and aspirations are different. Today, prospective franchisees have a variety of different franchises to choose from. Identify the opportunity that will bring you the dollar returns you need and want, that is a business that will provide you with the lifestyle you are looking for and has the uniformity to provide the benefits of a strong brand. Wayne Maillet is a franchise management consultant and founder of the consulting company Franchise Specialists. Respected within franchise circles, he brings a realistic, practical understanding of business and franchising. This article is based on excerpts from his book, Franchising Demystified. The book can be ordered through most book retailers or directly from the publisher at www.franchisingdemystified.com . From choosing the right franchise, to the renewal of your agreement, Franchising Demystified will help you make the right decision and maximize your investment.
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ex per t advice
Dan Kelly | President and Chief Executive Officer | Canadian Federation of Independent Business
Making a smooth exit:
Steps every business owner should take to plan for their succession
“The Canadian Federation of Independent Business (CFIB) has developed tips and resources to help small business owners prepare for the future.�
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Canadian Franchise Magazine
As a franchisee and small business owner, you probably dedicate most of your life to your business. You put all your savings and energy into it for years on end so it can thrive and truly succeed. You experience more than your fair share of ups and downs, but press ahead because you believe in the business and want it to grow. But what happens when it comes time to hand over your business and let someone else take care of what you have built with sweat and tears? You may be nearing retirement and counting on the sale of your business for your nest egg. You might be passing the reins to a family member you’ve been grooming for leadership. Or you might be considering your next business venture and need to finance the start-up costs. Whatever the case, you need a formal succession plan to ensure a smooth transition and that your investment in your franchise business pays off. The Canadian Federation of Independent Business (CFIB) has developed tips and resources to help small business owners prepare for the future:
First step: Create a formal plan Many business owners have a general idea of how they would like to exit their business, but just eight per cent have a formal plan in place. When done properly, a formal plan allows you to come up with the best option for your business’ continuance. It also helps you think through the logistics of exiting your business with the best return on your investment. Think about how you want your business to grow and develop: do any aspects of the operation, such as management, need to change or evolve before you make your exit? Think about whether you will pass your business down to a successor, have management buy you out (or an
employee buy in), or sell the business to a third party. Answering these questions will help you identify the steps you need to take to make your transition a success. CFIB members have the opportunity to discuss their options with one of our business counsellors.
Find the right person to take over Selecting a successor can be a very difficult decision, and not just because of the emotions involved. You may want to leave the business to a trusted family member, for example, but the Lifetime Capital Gains Exemption (LCGE) only applies on sales to unrelated parties, putting you at a disadvantage. After successfully fighting to get a LCGE and increase it over the years, CFIB has been advocating with government to extend the exemption to sales to family members, to give you more options when planning your business exit. In the meantime, you should be aware of all the tax implications. On the other hand, if you decide to sell to someone outside your business, you might have a hard time finding the right buyer. CFIB has recently partnered with SuccessionMatching.com, an online community of business buyers, sellers, and succession planning professionals, and BizON, an online marketplace for buying or selling a business. Both services offer discounted rates to CFIB members and help small business owners find the right buyer for their business.
to look at your personal income tax and estate planning to ensure the sale is tax-efficient – especially if the sale of your business is your retirement plan. You will also need to consider if you want to be paid in a lump sum or through installments. Finally, because you’re dealing with a legal contract with your franchisor on top of the tax implications of selling a business, you should consult your own lawyer and accountant and have them review your franchise contract and oversee the sale. Getting the best representation possible is the number one step in protecting your investment and ensuring a smooth transition for your business.
Start planning today Proper succession planning is not a onetime exercise, but an ongoing process that you regularly update as circumstances change. Whether you’re thinking of exiting your business in 10 months or 10 years, you can start planning for the future now. Visit cfib.ca/succession for tools, resources and CFIB memberexclusive savings on succession services to get you started. Dan Kelly is President and Chief Executive Officer of the Canadian Federation of Independent Business, Canada’s largest association of small and medium-sized businesses with 110,000 members across every industry and region.
Make sure to also consult your franchisor and review your franchise contract for any rules around selecting a successor and selling the contract.
Value and sell your business It’s important to get an objective and accurate valuation of your business before you sell it. This includes both tangible assets, like property and inventory, and intangible assets, such as customer goodwill. Measuring your franchise’s value is not so much about its performance in the past, but about how well it will perform in the future. Once you’re ready to sell, you will need
Dan Kelly
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Making an appearance every issue in Canadian Franchise magazine.
Each detailed, 4 color A-Z listing comes with a 150 word write up and your logo. Excellent for branding and recognition.
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To learn about the A-Z directory or any other products, please contact Vikki Bradbury: vikki@cgbpublishing.com
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baskin robbins Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 36th annual Franchise 500® ranking in 2014, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. BaskinRobbins creates and markets innovative, premium hard scoop ice cream and soft serve, custom ice cream cakes and a full range of beverages, providing quality and value to consumers at more than 7,500 retail shops in nearly 50 countries.
Bâton Rouge Steakhouse & Bar The new design direction of Bâton Rouge represents a modern yet timeless concept, reflecting the brand’s evolution, proven successful in both a downtown setting as well as in a suburban environment. The best franchisees are sought by emphasizing quality management and are more than just partners; they are invaluable family members for which their success is fueled by passion. They are supported with training programs that help their businesses grow and have continued access to operational and marketing support as well as architectural and construction services to facilitate design needs.
Baskin-Robbins was founded in 1945 by two ice cream enthusiasts whose passion led to the creation of more than 1,200 ice cream flavors and a wide variety of delicious treats. In 2013, more than 13 million ice cream cakes were sold in Baskin-Robbins shops worldwide. Headquartered in Canton, Mass., BaskinRobbins is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies. For further information, visit www.BaskinRobbins.com. To learn more about franchising opportunities, visit www.baskinrobbinsfranchising.com
Undoubtedly, the key ingredient to the brand’s success is the amazing food they serve. To ensure high standards of freshness, the food is prepared daily from the finest ingredients, as per exclusive brand recipes. Building upon its signature offerings of ribs and quality cuts of meat, the menu continues to evolve. With 30 Bâton Rouge restaurants located throughout the provinces of Quebec, Ontario and Nova Scotia, as the brand continues its expansion throughout the Canadian market, its popularity is expected to grow exponentially. Phone: 514-336-8885 Website: https://www.batonrouge.ca Email: ptsafoulias@mtygroup.com Contact: Peter Tsafoulias 514-946-7571
CANADIAN FRANCHISE
Excellent for branding and recognition.
Be part of our successful A-Z section and to be included online.
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
To learn about the A-Z directory or any other products, please contact Vikki Bradbury: vikki@cgbpublishing.com or 778 426 2446.
Dickinson Wright
• Drafting and negotiating licence and dealer agreements • Litigation and alternative dispute resolution • Marketing, advertising, promotions and contests • E-commerce • Regulatory compliance, with particular emphasis on franchise disclosure laws, product licensing and competition law • Protecting trademark and other intellectual property rights • Purchase and sale of individual units or complete systems • Leasing and real estate acquisition • Corporate and personal tax planning • Corporate and business law
Our franchise and distribution law lawyers are some of the most widely published and most respected practitioners in the world and have decades of experience representing a broad spectrum of businesses, from start-ups to multinational and multi-brand enterprises, in a vast range of industries. With access to Dickinson Wright’s full scope of capabilities, we support our clients in their every need, including: • Creating domestic and international franchise and distribution networks • Preparation of disclosure documents and materials • Drafting and negotiating franchise and distribution agreements, including unit, area, development, master and international agreements
Fired – Up Pizza Fired – Up Pizza is a mobile fired pizzieria that offers fresh made thin crust wood fired pizzas, Calzones, fired pies and fired dogs that will guarantee to satisfy appetites for something different. Fired up Pizz Inc has developed and owns a unique propriety franchise system relating to the establishment, development and operations of a mobile restaurant trailer, specializing in the sale of wood fire pizza, Calzones, Fired dog and Fired pies that are prepared using the best ingredients
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• Employment and labour law Phone: 416-646-3842
available and cooked using a wood fired oven. The Franchisor will train new Franchisees uniformily to its high standards of quality and service. Seasonal business 7-12 months depending on area – Easy to learn system Turn- key operation within 48 hours of concession trailer delivery – Strong GPM – Estimated ROI 1.5 -2 Years. For more information Tel: 866 746 6999 or email rob@firedup-pizza.com www.firedup-pizza.com
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fr anch ise & services di r ecto ry
Canadian Franchise Magazine
fr anch ise & services di r ecto ry
Freshii Eat. Energize. That’s the Freshii mantra. Freshii is a health-casual restaurant concept that serves fresh food designed to energize people on the go. With a diverse and completely customizable menu of breakfast, soups, salads, wraps, bowls, burritos, frozen yogurt, juices and smoothies served in an eco-friendly environment, Freshii caters to every dietary preference and type of taste buds.
Find the nearest Freshii: http://www.freshii.com.
Freshii will operate 200 units by the end of 2015
Keep in touch with Freshii on Facebook: https:// www.facebook.com/freshii. Follow Freshii on Twitter and Instagram: @freshii.
Great Clips, Inc.
average franchisee owns 5-6 salons after being
Great Clips, Inc. was established in 1982 in Minneapolis. Today, Great Clips has nearly 4,500 salons throughout the United States and Canada, making it the world’s largest salon brand. Great Clips’ convenient walk-in haircutting salons are 100 percent franchised and are owned locally by more than 1,200 franchisees across North America. No haircare experience is required for this multi-unit franchise opportunity. An executivemodel, manage-the-manager operation, the
The Interface Financial Group – IFG 50/50 The Interface Financial Group – IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small and medium-sized businesses by purchasing current, quality invoices at a discount, thus accelerating the client’s cash flow and growth. All transactions are syndicated 50/50 with the franchisee and the franchisor, and that means less working capital required to fund transaction: IFG does the bulk of the due diligence and the ‘paperwork’ for the transactions, and IFG 50/50 franchisees will concentrate their efforts on building the referral relationships – they do the ‘people work’.
in business for 5 years. Haircutting is a local neighborhood business that can’t be outsourced or sold online and is necessary no matter the economic situation. Opportunities available in select areas of Canada – Winnipeg and Ottawa are newly available. For more information please contact Beth Phone: 800.947.1143 Email: franchise@greatclips.com Website: https://www.greatclipsfranchise.com
• No staff to hire, fire, or manage • No storefront to own, lease, or maintain • No Inventory or stock to purchase • No extensive travel because IFG franchisees do business locally • Business-to-Business, professional environment with regular business hours of operation • Flexibility to relocate for part of the year or permanently and continue doing business Our franchisees are excellent communicators, relationship builders with decision-making and problem-solving skills, and much more sales & marketing oriented.IFG has been in the ‘invoice discounting’ business since 1972, and employs its franchise network around the world.
Key advantages of being an IFG 50/50 franchisee include:
www.interfacefinancial.com
CANADIAN FRANCHISE
Excellent for branding and recognition.
Be part of our successful A-Z section and to be included online.
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
To learn about the A-Z directory or any other products, please contact Vikki Bradbury: vikki@cgbpublishing.com or 778 426 2446.
international workplace group
Franchisees will also benefit from a built-in network of 2.5 million customers, including some of the most successful entrepreneurs and multi-billiondollar companies, that instantly become available to franchise owners.
IWG is the leading global flexible workspace provider with brands like Regus and Spaces and is seeking driven, committed franchise partners to capitalize on the significant demand for flexible, contemporary coworking spaces across Canada. IWG created the coworking concept 30 years ago and has been the industry’s global leader with over 3,300 locations across the world. The proven and scalable operating model can provide franchisees with a highly attractive return on their investment.
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in 80+ cities and 15 countries, opening 2 new restaurants every week. Guests can visit Freshii anywhere from Toronto, Miami, Chicago and Houston to Bogota, Dubai, Stockholm, and Dublin. Freshii restaurants are found in all types of locations from cosmopolitan cities, malls, college campuses, suburb neighborhoods, fitness clubs, airports and small towns.
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Financial Comments: Franchisees should have a minimum net worth of $3 million and a minimum of $1 million in liquid assets per location. Franchisees are required to pay a $50,000 initial franchise fee. Franchising Nationally. Call 1 647 256 1313 Email franchise.CA@iwgplc.com Web http://franchise.iwgplc.com
Founded in 1997 by CEO John T. Hewitt, Liberty Tax Service is the fastest-growing tax preparation franchise in the industry and has prepared almost 18 million income tax returns in more than 4,400 offices and online. Liberty balances strong growth, best business practices, social responsibility, and a fulfilling life experience for our franchisees. We’re committed to creating a business system and environment that will be held up as the model for all other tax preparation franchises to emulate.
Little Caesars Little Caesars offers strong franchisee candidates opportunities in select locations across the country. We provide candidates an opportunity for independence with a proven system, a simple operating model and strong national brand recognition. Franchisees benefit from a comprehensive training program that focuses on all aspects of the business, including training, architectural and construction services to help with design, preferred lenders to assist with financing, the ongoing research and development of new products, and effective
Mary Brown’s Chicken & Taters Mary Brown’s Chicken & Taters is the largest Canadian-owned Quick Serve Chicken Restaurant and one of the fastest-growing franchises in Canada. Our Signature Chicken is Made Fresh from Scratch in-store from whole, Canada Grade A Chicken; our tasty Taters are hand cut from
massage addict Massage Addict is the country’s largest and fastest growing provider of massage therapy services, with over 40 clinics across Canada. Massage Addict is a proven business concept serving a gap in the market by helping Canadians improve their health through affordable, convenient massage therapy without sacrificing quality or service. Clients love the quality of Massage Addict’s Registered Massage Therapists and our franchise partners love the business model. • Low investment and start-up costs • Recurring revenue and quick ROI
PAY2DAY PAY2DAY is a profitable alternative retail financial services company with a multitude of locations available throughout Canada. As part of our dynamic team, our franchisees have complete operational support, including, but not limited to; full in-depth training, expert assistance with site selection, advertising/marketing support,
fr anch ise & services di r ecto ry
Liberty tax service
Liberty Tax is a company to watch, not just in tax preparation franchise terms, but in the business world as a whole. Our corporate team, Area Developers, and franchisees are accessible and down-to-earth. We provide a supportive network and a culture that is progressive and fun. You can join one of the top franchise opportunities in the world. Just fill out our request franchise information form to find out more about Liberty Tax. www.libertytaxfranchise.com/request-franchiseinformation.html
marketing programs. Franchisees continue to receive support, expert analysis and consultation from corporate as their business grows. Little Caesars requires candidates desiring to open one store to have a net worth of $250,000 with a minimum of $100,000 in liquid, unencumbered assets (such as cash). Franchisees must also be able to obtain financing to cover the total costs of opening a franchised location. Contact: Angelee Brown, development manager Phone: 888-822-7981 Email: LCCfranchising@littlecaesars.ca Website: www.littlecaesars.ca
real, farm fresh Canadian potatoes. Mary Brown’s processes are time-proven, delivering a delicious, consistent menu and genuine hospitality that brings Guests back again and again. Contact: Franchising Phone: 1-866-640-3339 Website: www.marybrownsfranchising.com Email: franchising@marybrowns.com
• Approximately 80% of treatments are paid by insurance • Opportunity for multi-clinic ownership • Straightforward clinic operations • 100% Canadian owned and operated Massage Addict is the right industry, the right business model, the right brand and most importantly it’s the right time. Call today. Phone: 1-855-852-6108 Email: info@massageaddict.ca Website: www.massageaddict.ca
as well as the benefit of a corporate management team of knowledgeable experts with a combined 80+ years of experience in the Payday Loans and Cheque Cashing industry. Contact: Wesley Barker Phone: 905-450-2274 Ext 777 Email: info@pay2day.ca Website: www.pay2day.ca
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fr anch ise & services di r ecto ry
skedaddle Skedaddle Humane Wildlife Control has been Canada’s leader and pioneer in the area of urban wildlife control for over 25 years, helping home and business owners remove and exclude wildlife from their property in an effective and humane manner. As cities, towns and suburbs continue to expand the need for value-added wildlife management will continue to grow. Skedaddle’s proven three step approach includes humanely removing the wildlife, repairing the damage and securing the home against future intrusion. This ensures a customized and complete solution for customers at a premium price point. Skedaddle Humane Wildlife Control is the latest brand to join That Franchise Group who manage a portfolio of six home service franchises with over 400 locations across North America. With this strong backing, Skedaddle has aggressive growth plans to
Signarama Signarama is the largest sign franchise in the world, standing as the leading innovator in the industry. Signarama was also named #1 sign franchise by Entrepreneur magazine for 2014. Signarama is the best in the business and will start you off with all of the tools that you need to succeed. Our local Signarama stores serve brand building and visibility experts in their local business communities. They don’t just sell signs...just about anyone can do that! Our stores deliver multiple products and services as part of solutions for businesses to increase customers and build brand awareness. Each of our stores is individually owned and operated by highly trained experts who serve their local community. Although signs can be found everywhere, we operate on a new concept that’s unique to our stores. We combine signs with a full
The Seasons Art Class The Seasons Art Class is an adult art class franchise providing art classes one day per week. This is a great opportunity, low investment, no inventory, not need to rent a location. Great for part-time or as an added revenue stream. Our business has been in operation since 2009 and is the original provider of these inspired courses.
Key Benefits Include - high demand - low competition - cash business - limited accounts receivable - few employees - minimal supplies and equipment required - rapidly profitable - home based business - low start up costs - excellent head office support - environmentally friendly and socially responsible services For more information about this exciting opportunity: Website: http://www.skedaddlefranchise.com/
portfolio of branding options that result in a customized advertising solution for your clients’ businesses. A Signarama franchise is a solid business model that works to give back to businesses in the local community. Signarama is a proven business. We have the operational systems and processes in place to help our printing franchise owners succeed in today’s competitive business landscape. Our team of leaders and administrators will help you to get up-to-speed on all requirements and procedures for running the business, as well as provide on-going support and training to ensure that your printing franchise has reached its full potential. Contact: Anas Saltaji Phone: (905)281-8000 Email: info@Signarama.ca Website: www.Signarama.ca
The system has proven so successful that it has been expanded throughout Europe, North America and Australasia with many, very happy Franchisees and countless students. With well over 125 successful franchises already in operation right throughout the UK (and growing), we’re now offering the opportunity for you to be part of this successful group and run your own business in your area.
There have been many imitators in that time but none have managed to match the comprehensive process and systems that we formulated and continue to improve on year after year.
Using our proven business systems, you have the potential to earn a full-time wage for part-time hours! For more information contact Mike Curry email: theseasonsartclass@yahoo.co.uk
Topper’s pizza
We’ve learned from our successes and we know what works and what doesn’t.
Proven, tested, tried and true systems are among the biggest advantages to franchising versus starting your own business from scratch. With Topper’s Pizza, you’re benefiting from nearly 30 years of successful franchise systems. During that time we have invested and reinvested in all of our operations – from our P.O.S. systems, to training policies, to marketing, to research and development… and the list goes on.
What does it mean for you? It means you get to hit the ground running with years of knowledge and experience. It means you don’t have to worry about getting all of these systems in place—you get to do what you signed up to do: operate your business and achieve your personal goals. Let the delicious pizza, our Customer-Centric Culture and successful structure take care of the rest. www.toppersfranchise.ca
CANADIAN FRANCHISE
Excellent for branding and recognition.
Be part of our successful A-Z section and to be included online.
Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!
Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.
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spread its footprint across Canada in the coming years. Skedaddle Humane Wildlife Control is a community based business that currently provides profitable and rewarding service in 22 locations throughout Ontario, Quebec and Nova Scotia. No prior experience is required to get out from behind your desk and become your own boss today.
To learn about the A-Z directory or any other products, please contact Vikki Bradbury: vikki@cgbpublishing.com or 778 426 2446. www.canadianfranchisemagazine.com
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GREAT CLIPS STRIVES TO BE A CUT ABOVE The world’s largest hair care brand now has nearly 4,500 hair salons across North America, including 157 in Canada. With markets available for development in several Canadian territories, it’s worth looking at how this brand lives up to its name.
What makes a brand great? Great Clips has achieved many milestones that point to its strength: It’s the largest and fastest growing salon brand in the world, serving about two million customers weekly. It’s the salon industry’s first billion-dollar brand. And it consistently ranks as a top franchise opportunity in Entrepreneur magazine’s Franchise 500, including #1 in its category for the past three years. Great Clips’ position as a brand powerhouse has helped it secure major sports partnerships to connect with customers where they live and have fun. In January, the brand inked a multiyear partnership with the National Collegiate Athletic Association (NCAA), designating Great Clips as the Official Hair Salon of the NCAA, with exclusive marketing and media rights for all 90 NCAA Championships, including NCAA March Madness®. Great Clips also has a multi-year affiliation with the National Hockey League (NHL). As the Official Hair Salon of the NHL®, the brand receives
Canadian Franchise Magazine
ISSUE 4#3 - 2020
exposure during all U.S. and Canada Stanley Cup® Playoff game broadcasts. Add in Great Clips’ partnerships with the X Games and Monster Jam, and the brand has even more national and local-market opportunities to grow brand awareness and connect with customers. These powerful sports connections provide franchisees various opportunities to leverage unique marketing and promotional programs that speak to their customers’ passions.
History of Connecting Finding ways to connect with customers has been part of Great Clips’ history since it was established in Minneapolis, Minnesota, United States, in 1982. At the time, most people got their haircuts at full-service hair salons, at barbershops or at home. The company’s founders created the then-radical concept of a walk-in haircare salon that offered a select list of services to meet the customers’ desire for value – and weekend and evening hours to fit their busy lifestyles. This brand strategy is one of the things that appealed to Aruna “AK” Kumar when he began to research Great Clips after a salon opened near his home in Toronto. “I liked the walk-in concept and the idea of value pricing for everyone. I
“The company has created a franchise support system of people, resources and tools built on a foundation of mutual respect and trust that starts with the first phone call.” w w w. c a n a d i a n f r a n c h i s e m a g a z i n e . c o m
particularly liked that no appointments were needed,” he says. AK became a franchisee in 2012 and now owns five salons in the Toronto market. He acknowledges that his success has required hard work. “It’s not a get-richfast thing,” he says. But there’s a payoff: “Being a Great Clips franchisee means owning and operating your own business with the power of a national brand behind you. It’s like being in business for yourself, but not by yourself,” says AK, noting he has had a “great experience in all aspects of being a Great Clips franchisee.”
Franchisee Focused Great Clips strives to help all franchisees build their legacy. One hundred percent of Great Clips salons are franchiseeowned, and the company’s manager-run operational model has allowed many franchisees to continue their professional careers while establishing their salon businesses. The average Great Clips franchisee operates five or six salons within five years of opening their first salon. Great Clips is led and managed by a team
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of franchise-industry leaders who know that growth isn’t only about expanding the number of physical locations. These leaders focus on the metrics that matter to franchisees: The brand has posted 61 consecutive quarters of same-salon sales growth, with systemwide sales of over $1.5 billion. The company has created a franchise support system of people, resources and tools built on a foundation of mutual respect and trust that starts with the first phone call.
GREAT CLIPS
STRIVES TO BE A CUT ABOVE
Yasir Saeed is a successful Great Clips franchisee, with salons in Sherwood Park and Fort Saskatchewan. When he filled out an interest form on the Great Clips website, he was impressed by the call he received the next day from the Great Clips, Inc. development team. “Talking to my development manager was amazing,” says Yasir. “He gave me the information I was looking for. I’m a numbers person so I was really impressed with all the data and stats he had. He didn’t rush me, and he made me feel so comfortable.”
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“I was also exploring other franchises and all they wanted to know about was my bank account. With Great Clips, they
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