Page 59
FranchisingFeature spo children’s rts & fitnesss
au g june ust 2 0 1 5
Launch Trampoline park aims to launch franchise nationwide
Rising a Cut
above the competition
creating
a culture
of Open Communications Franchising USA
Every week nearly 100,000 Every week nearly 100,000 children in 29 countries have children in 29 countries have Serious Fun through enrichment Serious Funatthrough enrichment programs The Little Gym. programs at The Little Gym. All of that Serious Fun adds up to a All of that Serious Fun adds up to a serious business opportunity in a serious business opportunity in a growing, rewarding industry. growing, rewarding industry.
ON MORE THAN JUST THE MATS. ON MORE THAN JUST THE MATS. WE OFFER: WE OFFER: A A comprehensive comprehensive support and training training support and system based on on system based over 35 years of over 35 years of experience experience
A proven provenapproach approach A to skill growth to skill growth throughproprietary proprietary through curriculumand andmusic music curriculum
Innovativetechnology technology Innovative and tools to helpyou you and tools to help manageand andmarket market manage yourgym gymefficiently efficiently your
rewarding business AArewarding business enriching the lives enriching the lives ofof children your children inin your community community
To learn how how The The Little Little Gym GymInternational, International,Inc. Inc.can canprovide provide To learn you with the the tools tools to to create createaasuccessful successfulbusiness, business,visit: visit: you with
www.thelittlegymfranchise.com orcall: call:1.888.228.2878 1.888.228.2878 www.thelittlegymfranchise.com or Franchising USA
Our Special Supplement in Franchising which Features a different industry each month has become a regular of Franchising USA. To share your specific expert industry advice or to feature your franchise in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com
Contents On the Cover 66 Launch Trampoline Park 82 Rising a Cut Above the Competition: How Kid-Focused Companies are Proving Their Value by Kimberly Ellis, Snip-its
76
88 Creating a Culture of Open Communications is Key to Widespread Success by Roberto Ortega, CEO & Co-founder, KLA Schools
Expert Advice 72 Edutainment: Engineering a New Path for Students Learning STEM by Amir Asor, e2 Young Engineers 76 Best in Class: 3-3-3 Teacher Incentive Offers Unique Franchise Opportunity by Sharon Peterson, Best in Class Education Center
82
92 Is Child Care the Next Big Franchise Industry by Kyle Gjersee, COO, Top Level Mangement
Profiles 84 Discovery Point 90 Huntington Learning Center
Focus
86
74 The Little Gym 78 Apex Fun Run 86 Kid to Kid
Franchising USA
childr en’s fr anchising
what’s new!
Snip-its Adds New “Funny Frizz Fix’r” to Proprietary Product Line buy by the case,” said Snip-its Kim Ellis,
Vice President of Franchise Development. The product line has also been an
extension of Snip-its brand awareness.
“When customers take our products home with them, they take our brand home
with them. It’s a reminder of the positive experience their child had at our salon. Frizzy hair is no laughing matter, but it sure is profitable. Snip-its, the nation’s fastest growing kids hair salon in the U.S., announced the addition of the new “Funny Frizz Fix’r” smoothie cream to its popular product line.
The product line of shampoos, conditioners and gels has proven to be a valuable supplementary source of in-store sales, and since it’s only sold at Snip-its franchise locations, customer traffic has increased as well.
Parents and their children will see it on shelves in October, but it’s the Snip-its franchisees that will reap the benefits.
“We’re finding that parents are coming in to buy more products before their child is due for a haircut. In some occasions, they
And with quality products, kids can
achieve the fresh salon look at home,” said Ellis.
Snip-its is the only franchise that offers a
proprietary product line in the growing $5 billion child hair care industry. For more information about franchise opportunities, please visit www.snipitsfranchise.com.
COLLEGE NANNIES AND TUTORS AWARDS ‘ROOKIE OF THE YEAR’ TO SAN ANTONIO FRANCHISEE College Nannies and Tutors recently awarded its San Antonio, Texas franchisee as Rookie of the Year. The award was presented to the franchisee’s owners, Steve and Lynn Johnson, during College Nannies and Tutors’ 2015 National Conference, held in Minneapolis, Minnesota. The Johnson’s professional backgrounds— both in the military and corporate worlds—play a part in their success. Both Steve and Lynn served in the United States Army before spending 20 years in corporate America. Steve spent his years as the Vice President/ General Manager in the printing industry, and most recently worked his way up to the Chief Operating Officer for a financial services company, while Lynn spent her years in real estate. When the time was right, they decided to build something for themselves.
Franchising USA
Excited about the concept of College Nannies and Tutors, they decided to dive in. They now own two territories in the San Antonio market. With the success of their first Learning Center in Stone Oak, they will be opening a second in Northwest San Antonio. “We are working hard to build the business into
something that will carry itself forward,” says Steve. “It is gratifying to see our growth in the first year.” College Nannies + Tutors is committed to building stronger families. For more information, visit: www.collegenanniesandtutors.com/ franchise
Little Sunshine’s Playhouse Provides a Unique and Innovative “Once Upon a Time” Educational Experience Little Sunshine’s Playhouse maintains an identity and brand image of unrivaled distinction in preschool and educational childcare, providing preschool beyond daycare and excellence in early childhood education. Their philosophy differs from the average preschool because of its focus on building self-esteem through the arts and sports, limited enrollment and an upscale environment that incorporates luxurious wood and fabric finishes in non-traditional color tones. Their facilities serve as a castle for a “once upon a time” experience that enables each child to learn through play, develop their imagination and grow socially. The master planned and accredited curriculum at Little Sunshine’s Playhouse, Creatively Shine™, is based off the newest research and trends to prepare young children to enter their educational career equipped with cognitive, social, emotional, physical and language skills. Some of the
most innovative services include their password-secured Kiddie Cams™ that allow live remote viewing capability for parents, their LuvNotes™ system, which is an electronic communication system that allows teachers to send secured, individualized reports, photos and videos of each child to their parents throughout
the day, a Red Carpet™ morning drop-off service and secured entry. These unique characteristics and distinctive services differentiate Little Sunshine’s Playhouse the premier preschool/childcare concept. www.littlesunshine.com
Huntington Learning Center is the revenue leader in a “recession proof” industry While much of the rest of the economy contracted in 2008, the tutoring and test prep industry grew every year based on Anything Research’s 2015 report—as of 2014, it is a $4.3B industry. According to the New York Times, the industry seems “immune to recession.” Huntington Learning Center is the leader in this strong industry—their average franchise owner earns 61% more revenue than the closest competitor. They average $495,000 a year, you can get started for under $100,000 and no previous education experience is required. Eileen and Ray Huntington, the co-founders who helped pioneer the industry and still own and manage their company, attribute the industry’s consistent growth to the fact that parents will always prioritize their children’s education. Huntington’s industry leadership stems from a student-focused approach—by delivering great student results, the financial
success follows. Huntington students achieve a full school year equivalent of math and reading growth in just 3 months of tutoring. On the test prep side, their students see an average of 192 point gains on the SAT or 4.2 points on the ACT in just two and a half months of tutoring—these are the sort of gains that change the whole tier of school a student can go to, and can also yield scholarship dollars. To deliver these student and financial results, Huntington offers their franchisees world class support. As a recent franchise owner said, “As a business, if you follow the Huntington system and put in the time, your center will be highly profitable.” www.huntingtonfranchise.com
Franchising USA
childr en’s fr anchising
Page 63
childr en’s fr anchising
what’s new!
Mother and Daughter Team are Dynamic Duo! Eleven years ago, Fumiko and Doug MacPherson purchased a Kid to Kid resale franchise in Summerlin, Nevada. They felt it was a perfect business for Fumiko to run while raising their two small children. “As soon as I found out about Kid to Kid, I was hooked,” said Fumiko. “I love the idea of recycling and getting paid for items kids outgrow. I’m so happy to be helping people save and earn money.” Their daughter Naomi basically grew up in the store watching her Mom grow the business. Last fall, they both attended a new owner training class at the franchise office to learn the latest and greatest systems. Now Naomi is the store manager, working full time with her mother. “The franchise offers a ton of training and support to Kid to Kid owners and staff,” said Naomi. “The franchise truly cares about their franchisees and provides them with the tools they need for their business to grow.” When their lease came up earlier this year,
the MacPhersons seized the opportunity to relocate and expand, resulting in
exponential growth. In the first month at the new location, sales increased by 85
percent, making their dream come true. For more information, visit: http://kidtokid.com/franchising/whyown-a-kid-to-kid/
Pigtails & Crewcuts Announces 10 New Openings Across Country Pigtails & Crewcuts, an Atlanta, Georgia-based salon franchise where kids come first, has 10 new salon openings on the docket, bringing its total salons across the country up to more than 50. The kid-centric business, which opened in 2004, lets kids be kids while getting a great haircut. Even the smallest customers can select a plane, fire engine or car-shaped chair, play with trains and video games and watch the latest movies as their hair is trimmed by kid-approved stylists. Pigtails & Crewcuts salons also offer beauty services, such as ear piercing and spa treatments, and each business has its own party room and retail section.
Franchising USA
This year, new salons have opened—or will open—in Virginia (three locations), Colorado, Texas (two locations), Tennessee, Florida, New York and Arkansas. Wade Brannon, president of Pigtails & Crewcuts, says now is a great time to get into this kids’ business. “Pigtails & Crewcuts offers parents and children an inviting, stress-free, fun experience. As our brand expands, more and more salon owners are discovering that that kind of treatment is, and always will be, in high demand.” To learn more about the Pigtails & Crewcuts visit www.pigtailsandcrewcutsfranchise.com.
THE LITTLE GYM PARTNERS WITH LEGO SYSTEMS AND KINDERMUSICK INTERNATIONAL TO ENHANCE PROGRAM OFFERINGS The Little Gym International, the premier enrichment and physical development center for kids, enhances program offerings through strategic and exclusive partnerships with LEGO Systems, Inc. and Kindermusik International, Inc. These partnerships offer children unique, integrated opportunities to build upon the physical activities practiced in the gym and provide franchisees with promotional drivers to help grow their local business. Through the multi-year partnership with LEGO Systems, Inc., the North American division of the world’s leading construction toy brand, The Little Gym is the official childhood development center home to LEGO-based activities. Similarly, the partnership with Kindermusik, the world’s leading provider of music and movement classes for young children, establishes The Little Gym as the only gym-based franchise offering stand-alone Kindermusik classes to its members in the United States and select locations in Canada.
are evident and reflect each company’s commitment to whole child development. “We seek out strategic partnerships that complement our world-renowned curriculum,” said Ruk Adams, CEO, The Little Gym International. “These partnerships provide a unique opportunity to make a positive impact on local communities, helping children develop and helping our franchise owners grow their businesses.”
In each of the partnerships, shared passion and common values
www.TheLittleGymFranchise.com
Discovery Point Child Development Centers® expects to triple in size over next five years To answer the growing demand for educational childcare nationwide, Discovery Point Child Development Centers® is launching a national expansion campaign designed to open as many as 100 new locations over the next five years. The growth will be accomplished by franchising, initially targeting Texas and North Carolina with new markets to be added. “As the economy continues to grow and more parents are going back to work, the need for quality childcare will increase,” said Cliff Clark, President and CEO of Discovery Point Child Development Centers. With almost 50 locations throughout the Southeast, Discovery Point Child Development Centers® provides safe,
educational and nurturing environments for growing children. Discovery Point embraces a three A’s approach – Attention, Affection and Approval – and partners with Teaching Strategies in using the nationally recognized early childhood education program, Creative Curriculum System® for Preschool. Since opening its first location in an Atlanta suburb in 1988, Discovery Point has been a leader in childhood enrichment and care, expanding
beyond its Georgia roots into Florida, North Carolina and Tennessee with plans under way to reach new markets nationwide. More information about Discovery Point and Discovery Point franchise opportunities is available by calling (800) 418-3990 or visiting discoverypointfranchise.com or discoverypoint.com.
Franchising USA
childr en’s fr anchising
Page 65
childr en’s fr anchising
C over S tor y - L aunch T r amp o line
Launch Trampoline Park
aims to launch franchise nationwide Wet and Wild Inspiration Launch got its own launch after Arnold and his wife Erin went on Vacation in Florida in 2011. Fortunately (as it would turn out) for them, it was a rather rainy holiday. “Instead of going to Disney World and putting our raincoats on, my wife jumped online and found a trampoline park in the area,” Arnold recalled.
With five franchisees already in operation throughout New England, one in Delaware and another 15 franchisees signed and waiting to come on board, Launch Trampoline Park already has a significant jump on its goal of taking the brand nationwide. Describing it as the coolest indoor family entertainment facilities, CEO Rob Arnold said the trampoline parks range from 18,000 square feet up to 42,000 square feet
Franchising USA
with over 50 percent of that space being covered by trampolines positioned on the floors and angled up the walls. In addition to offering high-flying jumping fun, Launch also has trampoline dodge ball and trampoline basketball available to play, giving an added boost to those two traditional games. Various other attractions that range from location to location include 20 foot tall stunt towers to jump off, landing on giant stunt man air bags; giant foam pits for jumping into and a full redemption arcade and full-service cafe. The first park opened in November 2012, Arnold said during a recent interview from the company’s headquarters in Warwick, Rhode Island, and the company started franchising in April 2013.
The family went to the trampoline park and within five minutes he and Erin knew they should try to open one back home. With Erin being a gymnast in high school and Arnold having competed on roller blades semi-professionally in high school on half-pipes and street courses, the idea of jumping and twisting was right up their alley, the CEO said. After their trip, they came back to Rhode Island and within two weeks started looking for a location for the first Launch Trampoline Park. The Arnolds brought in a third partner; none other than former New England Patriots player Ty Law Law was getting ready to purchase several food franchises at the time, Arnold said, when he introduced the idea of the trampoline park to Law. Within a couple of days the former National Football League player asked if they could partner up on the trampoline park idea.
“We’re getting kids off the couch and making them active, getting them sweaty and getting their heart rate up. We’re introducing fitness into their lives, but disguising it as fun.” - CEO Rob Arnold
Fitness with Fun The need for Launch Trampoline Parks goes beyond just giving families a new form of entertainment to replace the same old thing that people are growing tired of, the CEO said. “We’re getting kids off the couch and making them active,” he explained. “We’re getting them sweaty and getting their heart rate up. We’re introducing fitness into their lives, but disguising it as fun.” It’s obvious that kids love jumping, as they are constantly getting into trouble for jumping on the bed at home, he noted, plus parents also love jumping on the trampolines, which makes it fun for everybody.
Ideal Franchisees The team at Launch Trampoline is looking for people who have marketing, finance and management backgrounds who have been successful in the past, Arnold noted. The franchise is getting a lot of interest from corporate executives and investment groups that are looking to purchase multiple units. To bring their new franchisees on board, Launch performs an initial call with them and has the potential franchisees fill out a ‘let’s get acquainted’ form. From there, the hopeful franchisees speak with Launch’s franchise sales department, which takes them through a business overview of the
franchise system and then they have a CEO call with Arnold. After that call, they set up a discovery day while Launch drafts a letter of intent for the franchisees’ new territory and they follow up the letter of intent with the franchise agreement. Once new franchisees are on board, the training and support begins. That support includes a broker network that is set up to help with the site selection process, a project manager that works alongside the franchisee to complete the countdown to launch, which is a 20-week process to make sure the new location is ready to open. Launch also helps franchisees with the layout of their parks. “We have an engineer on staff that will design the parks, design the equipment and optimize customer flow throughout the space,” Arnold said. The company has a VP of sales and marketing and a director of marketing that franchisees can get assistance from, plus business support managers that are designated to support specific franchisees throughout their entire relationship with Launch, meaning franchisees always have a dedicated support staff member there to assist them.
Launch tries to get its franchises into retail environments because it wants to be in visible locations that parents know are safe. Launch’s full service cafe and full redemption arcade also make it different than the competition, which often only offers trampolines, Arnold said. And, helping with marketing and keeping children entertained at birthday parties is Launch’s seven foot tall green kangaroo mascot named Joey. With 15 more franchises set to open within the next 10 months up and down the east coast, territories on that side of the country are selling out quickly. However, there are still plenty of locations across the entire country, including some that don’t have any trampoline parks nearby, making them especially lucrative. Apart from spreading Launch across the United States, the CEO said, the company also has plans to sign some international deals within the next couple of years.
The Launch Difference
With the company growing at such a quick pace — tripling in size this year — and also looking to add employees at the corporate level in marketing and operations, it’s an ideal time for franchisees to jump on board with Launch Trampoline Parks.
Unlike other trampoline parks that tend to hide themselves away in industrial parks,
http://launchtrampolinepark.com/ opportunities
Franchising USA
childr en’s fr anchising
Page 67
childr en’s fr anchising
Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
Children’s franchising
e r u t a Fe
Franchising USA
Nowadays children have a lot more choice. Every product has a million features and every brand carries a plethora of toys in a number of shades. The current generation of kids is used to the wide variety and it creates a huge competition amongst businesses to be the next best thing. Though we can’t all produce the next Anna and Elsa, or better yet, the Tickle me Elmo, anyone can be a part of that competitive, ever evolving industry through franchising. Kids are used to choices, and parents want to provide their kids with the best that they can. There is a high population of people under the age of five and the buying power of their parents is large: the average household income in developed countries is $50,000. Not only that, but the closer involvement of grandparents help double the buying power of parents. The baby boomers are one of the first generations to retire off a double salary and they want to share the wealth with their growing families. Though products, including toys, baby supplies, arts and crafts to name a few, is a huge market, services provided to kids is another considerable field as well.
“One thing is for certain, if you are passionate about kids, a franchise in this market is profitable, selffulfilling and always in demand.” With both parents working, there is not only a need for daycare, but people have more money to spend on activities, camps, lessons and again, toys.
Toys The size of the global toy market is estimated to be at 84 billion U.S. dollars in 2012, of which 20 billion U.S. dollars are attributable to the U.S. market, so it’s nothing to shake a Ferbie at. There are entire stores dedicated to the sale of toy products that prove to be profitable industries on their own. Well known toy franchises usually come with great marketing, an established household name and carry well known branded toys that every kid wants and needs as soon as possible. Not all parents are willing to indulge in their children’s everyday whims, but between Christmas, birthdays parties, rewards, allowances and so much more,
the toy store is becoming a weekly visit on most family’s schedules. The toy industry is an ever growing market. Kids will keep coming and adults will continue to produce, creating a constant set of purchasers. Kids have always been associated with toys from Hop Scotch and Jacks to Barbie and Legos. With the increase in technology, toy departments have grown in the last decade to include game consoles, videos, Blue Rays and Ipods. Kids are learning to adapt to technology and it’s an everyday characteristic of their free play. For the most part, technology has created high ticketed items that help drive sales.
Baby Products The U.S birthrate has been on a steady decline for some time now. In the States, the birthrate decreased to 13 per 1,000 of the population compared to 16.7 in 1990 in 2010.
Franchising USA
childr en’s fr anchising
Page 69
childr en’s fr anchising
Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
Tutoring programs are well known in the franchising industry. Parents obviously want their children to succeed and support them throughout their struggles and tutoring offers educators who specialize in specific fields. People can now access specific study sessions, pinpoint their issues and create solutions, either in a group environment, one on one or even online. After school programs offer homework assistance as well as academic activities that give parents more incentive to send their children for care with learning opportunities. Even though there are less teeny tiny consumers, the baby market is on a rapid increase. The global market is expected to increase its sales to 66.8 billion U.S dollars by 2017, compared to 44.7 billion in 2011. With constant research into baby safety and children’s health, more and more products are being produced to help service all the many needs newborns have today. The family dynamic has changed and this has created a lot of different needs that have created new products including pumps for working moms, entertainment for busy parents, safety seats, swings and chairs. Baby needs are increasing with a better understanding of safety standards, plus parents always want the best for their new bundle of joy. The internet has given parents easier access to the variety of products and services available to them. Surfing the
Franchising USA
web has given the busy mom or dad more buying power- once they recognize their baby’s needs, they can easily order with the click of a button all while cradling baby in their arms. People are also choosing to start their families later in life, which means they have stabilized a comfortable income and have more freedom to buy. The baby market is a guaranteed franchise opportunity- with children always being born and research leading to better and new products, it’s a market that continues to increase in value consistently.
Education Education is not only provided within the doors of a school, but it is a continuous effort throughout the day. Children have homework, they need support and with a broader and better understanding of learning disabilities, more kids can seeks professionals that can help them reach their potential.
Day Care With both family members working full time and mothers returning to work after a short lived maternity leave, more children are requiring day care services. In fact, nearly 11 million children under the age of 5 are in some type of childcare service in the States. With more families struggling after the recession, some parents had to pull their children from organized childcare and reach out to other venues because of the expense. That being said, if parents had the financial backing and ability they would choose an organized facility for their child. Though it took a hit during the recession, center-based daycares account for 26% of childcare arrangements, while their mother works, which is the highest percent in that category in 2012. Meanwhile, 67 % of mothers with children under the age of six are working parents who need child care.
A lot of day care facilities provide other services, including after school programs increasing profit substantially.
Parents are usually having their kids close together; guaranteeing two clients at the same time from one family and the day care market is always a necessity with a continuous demand. A childcare franchise offers children a guaranteed set of regulations and expectations that would be consistent with the brand. This branding gives franchises a stronger reputation compared to its competition and has an already developed marketing strategy. Parents are likely to leave their children in the hands of a wellestablished facility because the research and reviews have proven to be positive and reliable. A lot of day care facilities provide other services, including after school programs increasing profit substantially. In 2012, the average annual fees for before- afterschool care for a school-age child in a center was between $1,950 and $10,950. One of the main benefits of franchises focused on children is the consideration of the franchisee’s work-life balance. It would be important to enjoy working
with children and have a perspective about the family dynamic, as well as an understanding of the values parents hold for their children. One thing is for certain, if you are passionate about kids, a franchise in this market is profitable, selffulfilling and always in demand. About the author: After receiving an English Degree, followed by a Journalism Diploma, Gina became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
Look out for our next special feature:
Home Based Franchising Franchising USA
childr en’s fr anchising
Page 71
childr en’s fr anchising
Amir Asor, Founder & CEO, e2 Young Engineers
Edutainment
Engineering a New Path for Students Learning STEM
Worldwide, seldom do many students jump with joy when it comes to Science, Technology, Engineering or Mathematics - also known as STEM. In the United States in particular, many students are ranking lower than those in other countries, due to the lack of engagement in STEM education across schools and other organizations. With the United States ranked 48th in the world for the quality of the country’s education, and the demand for jobs in the fields of STEM expected to grow 26 percent between 2010 and 2020, there’s no doubt that future careers in the United States will require highly skilled applicants in the respective fields. STEM reform progress has been gradual, but awareness of the universal need to engage more students and make it a greater opportunity has increased. America is
“The purpose of the system is to help enhance and speed up the STEM educational process – in America and across the globe.”
Franchising USA
“The essence behind the edutainment method is based on theoretical studies, research and statistical tests.” working to fill that gap, and a system of learning that is different from much of what is taught in schools today, is what is lacking. Seeking to fill that void, Israel based company, e2 Young Engineers, a franchise that delivers edutainment (education + entertainment) programs using theoretical knowledge and practical STEM implementation, is looking to grow and expand in the U.S. market. The purpose of the system is to help enhance and speed up the STEM educational process – in America and across the globe. e2 Young Engineers has experienced international success in 17 countries and five continents worldwide, and represents more than 20,000 students who participate in the company’s unique curriculum. It is the company’s mission to provide a process of learning that has not been aggressively integrated into any school system before. The goal is to ensure children across the world are provided the opportunity and resources necessary to build the skills they need to excel and grow in their futures. STEM is one of the undeniable ways students will possess an edge over others and offer something less common, which is why it is so important to provide access for them to learn now. Youth today struggles to find the happy medium where they can enjoy and grow from their studies, because of psychological barriers deterring them from mathematics and science. Growing up, Amir Asor, founder and CEO of e2 Young Engineers, often struggled with learning disabilities and realized that education should be delivered in a fun way, not the frequent and routine way so many students are left with no choice but to endure. Upon his realization, at the age of 23, Asor decided to set forth and develop a learning program that would change the
process of learning for students, in the categories of STEM. While volunteering as a paramedic in emergency rooms, he witnessed firsthand the various treatment procedures implemented with multiple patients. The hospital staff provided individual care and personal attention to the needs of every single patient, within the larger group of patients. That single experience sparked the creation of the edutainment method utilized in the e2 Young Engineers curriculum, where every child is afforded individual attention in a larger learning environment. Through successful initial classes and before the end of 2009, e2 Young Engineers programs were conducted in over 90 educational centers throughout Israel. In 2012, the company began franchising, expanding the number of hands necessary to bridge the gap between what children are learning in school and the obstacles and demands they will face in the future work force. The edutainment method has been well received in the United States. The essence behind the edutainment method is based on theoretical studies, research and statistical tests. Children joining the company’s educational community can happily learn the likes of arithmetic, physics, and mechanical and software engineering using LEGO® and K’nex® assembly kits, as well as tablets to enhance the children’s experience and combination of technology with hands on skills. Children are able to see the model they build in 360 degrees, zoom in, and are provided 3-D instructions that help illustrate the step-by-step process. To accomplish the result the curriculum is intended for, the program implements a “Do Not Force It” method, which seeks
to create an atmosphere where a child will declare: “I want to take an active part in the learning process!” It takes four stages for a child to experience the latter result. The first is bond: children are automatically connected and drawn to games, so if the activity is interesting, they will like it. The second is feel: the child always feels the need to improve his/ her skills since they aspire to achieve the game’s goal. The third is understand: the child gains a conceptual understanding to be successful in the game. The fourth is empower: children who like an activity and are interested in it will be motivated to achieve expertise in relevant skills and succeed. Results of participants who took part in the company’s program showed that 88 percent of students attending e2 Young Engineers programs achieve grades in math ranging from 85-100 percent. The results solidify the clear connection between the curriculum and the student’s success in school, as well as the development of an arc of skills. Establishing its footprint in the United States, e2 Young Engineers is gearing towards an expansion that will mimic the success it has experienced in other countries and an increased number of youth that will look forward to growing their knowledge of STEM to better prepare them for the future ahead. Amir Asor is the founder and CEO of e2 Young Engineers. Asor has spearheaded STEM education in Israel with social action for children and their advancement. In 2011, he was awarded the title ‘Entrepreneur of the Year’ by Youth Business International (YBI), a global competition for young entrepreneurs, establish by HRH the Prince of Wales – Prince Charles, who serves as the institute’s president. For more information, visit www.youngeng.net
Franchising USA
childr en’s fr anchising
Page 73
childr en’s fr anchising
T he L it tle Gy m
Franchise cultivates
culture of caring for kids The thing that sets The Little Gym franchise apart from its competition is the brand’s culture, which is aimed at bettering the lives of the children it serves. While the franchise has over 300 locations spread across 30 countries, the culture inside those locations is consistent regardless of what part of the world a franchise is in, President and CEO Ruk Adams said during a recent interview from the company’s headquarters in Scottsdale, AZ. “It’s an interesting culture that surrounds our business,” Adams said. “It crosses not only from small towns to big cities, but it crosses from country to country. It doesn’t matter if we’re sitting in a class in Hong Kong or a class in New York City or one in Tulsa, Oklahoma or in Kuwait or Dubai
Franchising USA
or points in between, the kids all act the same. The way the lesson plan is designed is very universal in terms of reaction to the stimulus.” The Little Gym offers classes for kids from the ages of four months to 12 years that incorporates its “Three-Dimensional Learning” approach of “Get Moving” for flexibility and coordination, “Brain Boost” for listening and decision making, and “Citizen Kid” for teamwork and leadership. The classes include sports skills, developmental gymnastics or simply an introduction to movement. It also has parent-child programs for kids under three where children come with a parent or caregiver and take the class together. Each class is designed with a specific curriculum to build off the classes that come before it, just like how it would work in a school. The classes, which were all developed by early childhood development experts, are broken into short four-week learning units and over the course of a season or school year children will come for 40 classes. These classes last from 45
minutes to one hour and kids are grouped together with other children in their age range.
In the Beginning The Little Gym International has been in operation since 1992. The original concept was started in 1976 in Bellevue, WA by Robin Wes who is still with the company today, playing an instrumental role in creating the company’s proprietary music and holding the title of Founder and Keeper of the Culture. Wes was a kinesiologist and an elementary education professional who was also involved in music and gymnastics. He grew up in South Africa and travelled throughout Europe and the United States in the late 60s and early 70s, ending up in Seattle where he developed The Little Gym concept. “He wanted to create an environment where kids could come and learn physical activities, but in a non-competitive environment,” Adams said.
“By focusing on its company culture, The Little Gym has created not only the ultimate learning environment for children and parents, but a culture of success for its franchisees.” From his days competing in gymnastics, Wes was quite familiar with competitive environments and he believed kids needed a place to grow up without the pressure of competition. So, he created The Little Gym’s movement based program to teach kids basic life skills in a group environment that espoused the philosophy that kids need not be the best, as long as they try their best. After 16 years of running The Little Gym, Wes met the founder of Sylvan Learning, W. Berry Fowler, and the two of them started franchising the concept of The Little Gym.
Ideal Franchisee Adams said an ideal The Little Gym franchisee would have to be driven by a desire to create a better life for kids, as it’s not a hands-off business. They should have some background in customer service management, sales and marketing. “The thing that is most common is that they have a desire to own a business that is engaged in their community that will make a difference in kids’ lives,” Adams said. Within the United States, the company has just over 200 locations in nearly 40 states in cities as big as New York to as small as Fayetteville, NC. Although The Little Gym has a presence in all the major metropolitan markets in the US, there are still locations available basically everywhere, including New York, San Diego, San Francisco, Los Angeles, Portland and throughout Nevada. Plus, all of Canada is open for new franchisees.
A Safe Place The need for a place like The Little Gym has never been greater, Adams noted. When he was young, the CEO recalled, his mom used to kick him out of the house if
the sun was shining to go play with friends and wouldn’t expect to see him back until dinner. Today, though, parents perceive the world as being a less safe place than it was in previous decades. The Little Gym gives parents the ability to provide a safe environment where kids can engage in physical activities with others in an organized fashion that teaches them valuable skills that they may not get from their everyday unstructured play. “We help prepare kids to participate in other things that they’re going to go do,” Adams said. Apart from structured curriculums and a broader age range than their competition, The Little Gym has been able to develop exclusive partnerships with Kindermusik, which offers early childhood music education; LEGO, which the brand uses to help develop kids’ cognitive thinking and fine motor skills; and Nickelodeon, which provides The Little Gym with recognizable characters for children to identify with as they celebrate birthdays.
Training and Support The Little Gym works with franchisees to determine the best business structure
for their location and helps them with their insurance. The company has real estate services to find the right space and negotiate a lease and partnerships with architectural firms to get the build out done as efficiently as possible. Plus it also offers owners access to a dedicated Business Consultant and full marketing support. The brand has a four-step training process that takes seven to eight weeks to complete. The training covers business operations, hiring and curriculum training. In addition to that, the company provides training for franchisees’ employees both on-site and online. Plus, The Little Gym helps owners who want to purchase multiple locations by making sure their managers are savvy enough to run the locations themselves. “We have special training for their general manager so they can focus on building their business in more locations,” Adams said. By focusing on its company culture, The Little Gym has created not only the ultimate learning environment for children and parents, but a culture of success for its franchisees.
Franchising USA
childr en’s fr anchising
Page 75
childr en’s fr anchising
Sharon Peterson, Director of Franchise Sales, Best in Class Education Center
Best in Class 3-3-3 Teacher Incentive Offers Unique Franchise Opportunity for Educators
Seeing teachers shortchanged on their annual income is nothing new, with the average annual teacher’s salary hovering around $43,000.
Sharon Peterson
Franchising USA
Many educators seek to increase their income with side jobs such as after-school tutoring; other educators, such as those in the Best in Class Education Center franchise system, take it a step further by controlling their destiny through business ownership.
To give teachers an opportunity to exceed their predetermined income potential, Best in Class introduced the 3-3-3 Teacher Incentive last year. The incentive discounts $3,000 off the franchise fee for the first three centers the teacher opens and waives the franchise royalty fee for the first three months of the center’s opening. The healthy incentive not only makes the brand more accessible, but it also offers a unique opportunity for educators to jump start their business by making additional funds available for costs such as hiring, local marketing and supplies. “Best in Class has grown as a successful franchise because of our commitment to
opening a business in a completely different industry,” Arora said. “However, after realizing a need for an education brand that focuses on critical thinking, I decided to move forward with Best in Class. The incentive, the curriculum and the corporate team were all contributing factors to that final decision.” “Best in Class is a family of passionate franchisees, and we continue to seek dedicated individuals to be part of a brand that is fulfilling and continues to make a positive impact in communities,” Sharon Peterson, Director of Franchise Sales at Best in Class, said. “Through our strong incentives, which also include a Veteran Incentive, we look forward to helping more entrepreneurs realize their business ownership dreams.”
“Best in Class is a family of passionate franchisees, and we continue to seek dedicated individuals… we look forward to helping more entrepreneurs realize their business ownership dreams.” - Sharon Peterson, Director of Franchise Sales at Best in Class
investing in our programs, our qualified instructors, and our franchisees,” Hao Lam, CEO and Chairman of Best in Class said. “We hope to continue to attract entrepreneurs who are passionate about education, and who better to fill those shoes than existing teachers?”
curriculum and methods but the incentive certainly helped me make the final decision to join the brand as a franchisee,” Chen said. “By opening a Best in Class center in my community, I am able to fulfil my goal of positively impacting the lives of more students. With four children of my own, as well as my background in teaching, I understand the importance of providing students with the individualized support that Best in Class emphasizes.” Ruchika Arora is another franchisee who was attracted to Best in Class’s resources and benefitted from the Teacher Incentive. With 14 years of education under her belt, Arora began considering the idea of opening her own business after searching for a tutoring center for her daughter.
Based in Seattle, Best in Class ensures that it can “give the gift of a lifetime” through educational enrichment and is dedicated to providing superior supplemental education to guarantee students’ individual success. The brand’s thoughtful methods, highquality instructors and customizable approach have garnered great attention and traction in the educational market. Best in Class’s unique approach begins with Lam’s passion for teaching and his steadfast commitment to programs of the highest quality that produce results. With a strong emphasis placed on well-designed curriculum and materials, students engage in critical thinking and gain skills that are vital for future professional and developmental achievement. With more than 30 centers across the United States, Best in Class is currently focusing on growth in key development markets including Southern California, Texas, Maryland, Washington D.C. and Virginia.
The first to benefit was Kelly Chen in San Francisco, who holds a degree in Child Development and an Associate Teacher Permit in the state of California.
Unable to find a local education center that met her standards, Arora came across Best in Class. After studying the center’s materials and teaching methods offered by the brand, she decided to become the first franchisee to open a center in New Jersey.
Sharon Peterson is the Director of Franchise Sales for Best in Class Education Center. Prior to joining the supplemental educational franchise, Peterson worked in franchise sales for a small frozen yogurt concept, where she helped develop the infrastructure and lead the growth of the system from 60 to 340 locations.
“I was interested in Best in Class for its
“Initially, I was actually looking into
http://bestinclassfranchise.com/
Having just launched the Teacher Incentive in October 2014, the brand will have at least four franchisees utilizing the offer by the end of this year.
Franchising USA
childr en’s fr anchising
Page 77
childr en’s fr anchising
A p ex Fun Ru n
Apex Fun Run
Increases Funding for Schools Using Unique Fund-Raising Model “It’s a win-win for schools,” said Apex Fun Run Vice President of Franchise Development, Jeremy Barnhart. “We handle the heavy lifting, worry about all the details and the schools are the ones who get the money they so desperately need.” Here’s a quick look at what Apex Fun is all about:
What: • APEX Fun Run is a 2-week hasslefree fundraiser promoting fitness and leadership for elementary schools. A team of athletes will be on your campus for the full length of the program to teach students valuable leadership lessons, raise pledges, and serve the teachers.
As federal, state and local governments continue to slash school funding budgets and overworked parents and administrators struggle to raise important funds that help with the most basic of needs inside the classroom. Arizona based franchise, Apex Fun Run has increased funding for schools across the United States over 100% year over year using their unique school fund-raising model. This mobile franchise model is on pace to raise over 6 million dollars for schools
Franchising USA
across 16 states for the 2014/2015 fiscal year. With over 56 franchisees in 16 states this company is reshaping the school fundraiser model. Gone are the days of hawking cookie dough and wrapping paper—Apex Fun Run earns on average $23,000 per school per Fun Run event held. The concept is simple, Apex Fun Run franchisees collaborate with school PTO/As and faculty, and produce a meaningful and “hassle-free” school fun run that is financially successful and builds leadership and fitness values in the students who participate. Between a pep rally, teacher competitions and awareness building over two weeks, the momentum will culminate with the Fun Run on the last day of Apex’s time at each school. Kids run laps on a special course set up by Apex and friends, parents and family donate per lap.
• This is the major school fundraiser for the semester. No nickel and diming parents! And teachers will get a percentage of the money raised for their own classroom! Students will be raising pledges for each lap they run at the APEX Fun Run.
Who is APEX: • The program is run by athletes who are all very passionate about building leaders, and are all deeply connected to teachers and principals in education.
Why: • This program is set up to promote fitness and leadership traits to students. APEX has transformed the traditional idea of a product sale into a fun, fitnesscentered event that students and teachers enjoy. • The program is set up to raise more money for the teachers and the school
than any other product sale could. In fact, 10% of the funds raised by each class go directly back to the teacher’s budget for supplies, food, field trips…
Program Components: • Teacher Meeting: before the program, we will meet and go over details of 2-week program, review FAQ and hand out posters, etc. Teachers become coaches and teachers, together with their students, pick a class name. During teacher meeting, coaches also decide on class awards for varying pledge levels. All teachers receive their Fun Run jersey. • Pep Rally: Our team, backed up by booming sound system, dancing, music and exceedingly high energy, will introduce the program, and prizes, to students. Teachers will receive lanyards/pledge kits that we have for each student. • Set Goals: Coaches decide on goals for their classrooms with pledges (usually 3x the amount of students as the dollars per lap raised) and email parents to let them know that teachers will be getting
“It’s a win-win for schools. We handle the heavy lifting, worry about all the details and the schools are the ones who get the money they so desperately need.” - Jeremy Barnhart, Apex Fun Run Vice President of Franchise Development
money directly for this fundraiser, and they need the parents’ help to reach the goal and how their child’s teacher will spend the money raised. • Team Days: For the 6 days after the Pep Rally, the APEX team will come into class for 5-8 minutes/day to give the lesson and reward students. This is a time for coaches to sit back and enjoy, and keep the students going on their pledges to earn class prizes. • Fun Run: The culmination of the nine prior days peaks at the actual APEX Run! Parents and teachers come and enjoy the run with the students (45 minutes) and encourage them with
noise makers, cheering sections, and at water station. At the end of each group of two grades (one grade runs on one course; two grades run simultaneously on adjacent courses), we hand out clipboards to teachers to count their students’ laps. APEX team records all laps for every student in computer system to generate pledge letters. • Follow Up: APEX will give an envelope to all students to collect funds the day after the race. Follow up, computergenerated letters and emails will be provided to PTO and teachers to ensure all of the money pledged is collected. http://apexfunrun.com/Home/Franchise
Franchising USA
childr en’s fr anchising
Page 79
Franchising USA
Page 81
Franchising USA
childr en’s fr anchising
Kimberly Ellis, Vice President of Franchise Development, Snip-its
t u C a g n i Ris
t i t e p m o C above the How kid-focused companies are proving their value in an evolving industry In recent years, the U.S. hair care segment has grown to a staggering $40 billion in annual revenue, proving its ability to untangle postrecessionary knots that continue to plague many industries. With children getting their haircut more frequently than adults, specialized segments of the industry, such as child hair care, are rising a cut above the rest. In fact, families with school-aged children spend nearly 38 percent more on hair services than households with no children. Furthermore, according to a 2014 Beauty Salon Market Research Report,
“By providing a friendly and knowledgeable staff, animated gadgets, computer games and a character filled entertaining environment, child hair care franchises are able to create an enjoyable haircutting experience for children..� Franchising USA
t
the operation. However, child hair care franchises like Snip-its not only offer lower investment costs but also provide an easy and enjoyable business model with comprehensive new salon support. The beauty of a child hair care franchise is that it’s not a difficult concept to understand. As long as a franchisee has the ability to create brand awareness in new markets that already have very little competition, success will come naturally.
tion revenue growth in the hair care industry is expected to improve over the next five years, rising at an average annual rate of 3.2 percent. With an increase in consumer’s disposable income, parents are now spending more on specialty hair care services for their kids. Therefore, the growing industry profits are encouraging new businesses to enter the field like never before. It’s no surprise that this specialized segment of hair care is leading the industry pack as a traditional haircut can be a terribly traumatic experience for a child. Many children emerge from the salon cranky, crying or just plain upset about their haircuts. With the professional assistance of a child hair care specialist, haircuts are able to turn into a positive, fun-filled experience for both the parent and child, ultimately leaving with both a great haircut and a smile on their face.
It’s all about the Kids While thought leaders in the U.S. are focusing on the baby boomers becoming seniors and creating business opportunities to assist their growing demands, many are neglecting to recognize the flourishing population of children within our society. There are 40 million kids under the age of 10, therefore, if this population gets their haircut six times a year on average, there are 320 million haircuts taking place, ultimately drawing in five billion dollars of revenue. With only four major companies serving this specific niche,
the opportunities are endless due to the capabilities to thrive in a recessionresistant industry. The first and largest child hair care brand capitalizing on this flourishing segment that caters to young consumers is Snip-its, an innovative child-focused salon and entertainment concept that is turning a traditionally mundane and often unpleasant experience into a fun-filled, animated adventure. With the corporate staff possessing over 160 years of combined industry experience, Snip-its has revolutionized the children’s hair care industry. By providing a friendly and knowledgeable staff, animated gadgets, computer games and a character filled entertaining environment, child hair care franchises are able to create an enjoyable haircutting experience for children. Furthermore, franchises like Snip-its serve as a solution for parents who are looking for a way to untangle the challenges of trying to find a convenient haircutting experience for their kids.
The Right Person for the Industry When considering the different types of businesses related to children’s services, the first item to consider is the investment rate. For other kid-focused segments, like a fun house business, the initial buy in rate is vast due to the requirement of purchasing the products necessary to run
As part of the decision to purchase a child hair care franchise, it’s crucial to ensure that the revenue stream is not solely dependent on haircuts. At Snip-its, there are five different revenue channels that include haircuts at the core but extend to parties, specialty workshops, spa services, and retail. Therefore, franchisees have the ability to not only depend on one factor of the business, ultimately creating more flexibility and security. The child hair care franchise concept is a perfect match for the business person who wants to remain semi-absent. In fact, Snipits prefers its franchisees to be out of the salon implementing marketing, facilitating social media engagement and driving the top line while maximizing the bottom line. The child hair care industry serves a great way to earn a successful living in a feel-good business. Ultimately, franchisees gain a sense of community connection, pride of ownership and the ability to exit corporate American and spend their day working with laughing children in a welcoming environment. Kimberly Ellis is Vice President of Franchise Development for Snipits. Most recently, Ellis was a senior consultant with MSA Worldwide and provided existing and emerging franchisors expansion and system assessment, sales program development and management, and recruitment marketing strategy. With over 20 years of experience in franchising, Ellis also held executive positions in sales, marketing, and operations for both franchised and non-franchised hair care companies. For more information about franchise opportunities, please visit www.snipitsfranchise.com.
Franchising USA
childr en’s fr anchising
Page 83
ch i l dren’s fra nch isi ng
Discover y Point Child Develop ment Center s ®
Discover
The Discovery Point Difference
Premier Educational Childcare Franchise Offers Unique, Turnkey Opportunity In A Rapidly Expanding Industry. As the song goes, the children are our future. And that is certainly true if you are looking for a franchise opportunity in a growth industry. In the U.S. alone, the childcare industry is estimated to be a $48 billion business and growing. Experts predict that as the economy continues to expand and more parents return to work, the demand for quality educational childcare will expand dramatically as well. And at the forefront of answering that demand is Discovery Point Child Development Centers®. The Georgiabased franchisor has launched a national expansion campaign and is looking for franchisees who want to make a difference in their community to open as many as 100 new locations over the next five years. “There is no doubt that the need for high quality childcare is increasing,” said Cliff
Franchising USA
Clark, President and CEO of Discovery Point Child Development Centers. “But today’s educated parents are looking for more than just daycare; they are looking for programs that will help their child develop.” Discovery Point Child Development Centers use the nationally recognized early childhood education program Creative Curriculum System® for Preschool. That distinctive approach – coupled with the company’s one-of-a-kind, turnkey franchise model — sets Discovery Point Child Development Centers apart in the childcare industry. Once a franchise agreement is signed, the Discovery Point real estate team carefully selects optimum sites for its franchises, purchases the property, and builds the childcare center from the ground up, handling all aspects of construction. All equipment is provided and installed by the franchise company, literally creating a turnkey opportunity for the franchisee to open the doors to a new state-of-the-art facility. “This process allows the franchisee to focus on training and learning the business rather than being distracted by trying
to find real estate and getting the center constructed and opened, which is where we have extensive expertise,” Clark said. These unique points of difference are what set Discovery Point apart from other childcare franchise systems and are a big reason that Discovery Point has been ranked in Entrepreneur Magazine’s their “Top 500” and “Red Hot Franchise” lists. More information about Discovery Point and Discovery Point franchise opportunities is available by calling (800) 418-3990 or visiting discoverypointfranchise.com or discoverypoint.com.
childr en’s fr anchising
K id to K id
Franchisees Trust Instincts
Find Success with Kid to Kid Buying a business isn’t something most people do on a gut feeling, but a pair of Aurora-area franchisees did just that and turned their love of resale shopping into a thriving business. Miriam and Todd Frick own three resale clothing franchises including two Kid to Kid franchises and an Uptown Cheapskate franchise. At Kid to Kid, parents buy and sell gently used children’s things at discounted prices, while creating strong profit margins for the franchise owner. At Uptown Cheapskate, teens and adults can find name brand clothing, including the hottest brands, at a fraction of retail prices. The Fricks began their entrepreneurial journey almost eight years ago by purchasing an existing Kid to Kid franchise that had been operating for more than 17 years. They expanded by opening a second Kid to Kid location five years later, and this year diversified into the Uptown Cheapskate brand by purchasing a third store to serve the growing number of teens, college students, and adults looking for bargains.
Trusting an Instinct The Frick’s foray into the children’s clothing business came about because they needed a change in their lives. Like many people across the United States, they felt the squeeze of the recession back in 2008. Todd had been a youth pastor who had left to try to earn a better living for his family in sales. Miriam, meanwhile, was a hairdresser by trade. But with nobody making purchases of what Todd was selling – things like cars,
Franchising USA
real estate, and windows – and nobody doing any hiring at the time, things were looking bleak for the couple and their four children. The Fricks struggled financially as Todd tried to make his way in a new career at the worst possible time. “I kind of felt like we needed to go into business for ourselves and work together,” Miriam said during a recent phone call from the family’s home in Aurora. With no real business experience, the Fricks were drawn to franchising. She started researching various franchise opportunities, none of which included retail, when fate intervened. One day, while shopping at her local Kid to Kid store, a store employee slipped a flyer into her bag. “The flyer said ‘Our store needs a new mommy.’ “So that’s how I found out the store was for sale,” she recalled. Miriam had been a long-time customer of Kid to Kid and loved being able to buy good-as-new clothing for her kids at big discounts. “It made a lot of sense to sell the clothes the kids had grown out of and buy new things another kid had worn a few times,” Miriam said. Because she already loved the concept of the store, Miriam brought the flyer home to discuss with Todd. “Saving money was very important to us, so it made sense that it would be important to other people too,” Todd said. “It just felt right in our gut to buy this business,” said Miriam. That instinct proved to be a life-changing one for the Frick family.
A Growing System of Support Before making an offer to buy the store, the Fricks consulted with BaseCamp Franchising, parent company of Kid to Kid
and Uptown Cheapskate. After speaking with the BaseCamp team and talking to existing franchise owners, the Fricks were convinced they had stumbled onto a unique opportunity. “Everyone we talked to raved about the support provided by the franchisor and the camaraderie among the other franchisees. I knew going in that we would get the training and support we needed to make it a success,” said Todd. After completing the purchase of their first Kid to Kid store in 2008, the Fricks went through two weeks of intensive New Owner Training to learn the systems and processes of running a Kid to Kid. They were trained on all aspects of management, including front-end and back-end operations. A few months ago, the Fricks attended New Owner Training for the second time – this time for their Uptown Cheapskate franchise. “We learned everything we’d need to know, and I couldn’t believe how organized everything was,” said Miriam, “The training courses now, as compared to eight years ago, have evolved and improved so much.” As first-time entrepreneurs, the Fricks felt grateful to have so much training and support at their fingertips. “It would be very difficult to figure this business out on our own,” Miriam admitted, “It’s so reassuring to have a franchise office that provides best practices and helps us to continually improve.” “From the beginning, the Basecamp team was just a phone call away. We had a lot of questions, especially in our first year, and they were always happy to help us. Being able to pick up the phone and call other franchise owners, people who are going through the exact same thing you are, and who are happy to assist you, was also extremely helpful,” Miriam said. “We
“We have a great network of communication with the other owners and we’re like a giant family. This is a franchise that is really driven by the owners.” - Miriam Frick
have a great network of communication with the other owners and we’re like a giant family.” The Fricks agreed: “This is a franchise that is really driven by the owners.”
Managing the Managers Franchising has helped the Fricks leave their financial struggles behind, but it took a lot of hard work to get there. We put in some long hours the first year, but they were fun hours and we were together,” said Miriam. “There were new challenges almost every day, but I liked what I was doing a lot more than working for someone else,” said Todd. Miriam credits the franchise systems, like the Management Tools and the Basecamp Training Portal, with making training great staff members easier and more consistent. With the Training Portal, for example, she is able to teach a new hire the fundamentals of the computers, store layout, and job expectations through interactive videos and quizzes – a benefit she attributes to saving her and her store managers significant amounts of precious time. Like most retail businesses, the Fricks have busy seasons where they put a lot of time in their stores. Other times of the year, they are able to pull back, work from
home, or even take time off and let their managers run the day-to-day operations of the stores. With four children at home, ranging from a first grader to a recent high school graduate, the Fricks have had to work to find a balance between owning multiple successful businesses and a busy family life. “We love having the flexibility to go to the kids’ games and events,” Miriam offered, and Todd agreed. “I would never go back to working for someone else, that’s for sure.” A balanced family life is a big part of the reason the Fricks have been diligent about developing good managers and staff. Having multiple stores means they can’t be involved too heavily in the daily operations of the stores, Miriam said. She likens herself and Todd to conductors, where they manage the store managers who manage the staff. “We follow the Kid to Kid system, hire good people and teach them how to use the franchise tools,” Miriam said. “In turn our managers do a great job of providing structure, management and support for our team members in all three stores. This has made our lives much easier and has allowed us to expand our business and income, while continuing to make our family the top priority.”
Recession Proof Growth Above all else, the Fricks are happy to be in an industry they term ‘recession proof.’ “Now that the economy is rebounding, our business continues to succeed,” said Miriam. “I’m not going to lie to you—when the economy tanked, we were really scared. But we found that children will always be growing and always be in need of new clothing.” The trend toward cutting down on waste has helped propel store sales and the Fricks believe they have just broken the surface of the growth and profit that is ahead for their business. “We haven’t even reached near the potential of what our stores are capable of,” Miriam said. When asked about their secrets of success, the Fricks are quick to give credit to their ‘fantastic franchise family’. “If you follow the system and ask for help, the support staff at Basecamp is tremendous and has been absolutely vital to our success,” said Miriam. Miriam and Todd often think about what could have been, “We just feel so lucky to have stumbled onto this opportunity and to have had this once-in-a-lifetime chance to build a successful business and change the future of our family so much.” www.kidtokid.com/franchising
Franchising USA
childr en’s fr anchising
Page 87
childr en’s fr anchising
Roberto Ortega, CEO & Co-founder, KLA Schools
Creating a
Culture of Open Communications is Key to Widespread Success
In order to be an effective franchisor with a successful franchise system, one has to make strategic moves that push the brand forward and keep a growing system thriving. What’s more, how these moves are communicated internally to the franchise system is crucial. From the top down, it is critical to maintain an open flow of communication where the team feels
Franchising USA
comfortable sharing new ideas and best practices. Establishing a culture of openness will ultimately benefit operations and franchisee satisfaction and prepare the franchise for continued growth. Being the CEO and co-founder of KLA Schools, it is my responsibility to establish a culture of communication while taking the entire system into account. No matter the size of the franchise it is essential that everyone understands the company’s main goals and initiatives and how it is looking to achieve them. It is up to the franchisor to find the best way to communicate that message so that everyone involved knows what the company stands for and what the system is working toward.
Establish a Culture of Open Communication Early and Keep it Thriving Communication among the KLA Schools franchise system evolved quickly due to national expansion and a shift in focus. Initially operating only in Florida, faceto-face interaction helped our young brand and group of franchisees aim in on our overall goal to expand into other states. Once we achieved this, the need for effective communication stayed constant while our operational methods changed. Franchisees are there to enhance the brand and should have a platform for their voice to be heard. Whether it is a
“Franchisees are there to enhance the brand and should have a platform for their voice to be heard. Whether it is a problem or creative feedback, the doors of communication need to remain open from start to finish.” problem or creative feedback, the doors of communication need to remain open from start to finish. For instance, when it comes time to fine tune some items that impact the brand as a whole – such as the website or information brochures – invite your franchisees to the discussion table. Franchisees offer a perspective that comes from first-hand experience. Another strategy that is helpful in creating a “win-win” relationship between franchisee and franchisor is creating a Franchise Advisory Council made up of select franchisees system wide. As the system grows, franchisees are selected by their peers to serve as their representative. KLA Schools is small enough that I am able to stay in communication with our franchises individually, but as the brand grows, establishing an advisory council will ensure that the relationship stays robust.
Support One Another for Widespread Success When an entrepreneur considers a franchise opportunity, it’s important to prospective franchisees that they are investing in a brand that strives for collateral success and franchisee satisfaction. Access to the founder, executives or senior management and support should be easy and communication should be constant. Franchisees should not be handed a box of instructions and told to build without the proper tools and resources. Rather, on a regular basis, franchisees should have communication with the corporate team
to discuss best practices, new initiatives, etc. When franchisors and the franchisees work closely together as a team, it will ultimately lead to increased satisfaction among the system that can be passed onto prospective investors. Franchisors often forget that communication can flow outside of the company. Whether that message flowing out is positive or negative can have larger implications for widespread success.
Communication Should Permeate All Aspects of Franchise Many franchises pride themselves on having strong lines of communication but oftentimes that line of communication is a one-way street. This is often truer for larger franchise systems where a disconnected executive team has likely mastered effective modes of transferring information throughout their system. Yet, any discussion that originates from the franchisee toward the franchisor often gets lost in the shuffle or must pass through multiple channels, where the message can be misinterpreted. My franchisees have my cell phone number, and they know that communication won’t be lost in transmission. Communication within the company doesn’t always have to be work-related. Franchisees may feel more open to express their thoughts when the personal connection is established. Therefore, encouraging personal interactions may prove more fruitful than guided discussions. I try to convey my true
Roberto Ortega
interest in the lives of the people as a part of my daily interactions.
Show Support and Guidance Surrounding Franchisees A traditional approach to franchising isn’t the only approach and can even be a disadvantage when attracting the next generation of franchisees. There are different ways of running a promising franchise that doesn’t include churning out worksheets and strict guidelines and then expecting every franchisee to fall in line or fail. It is important for franchisees to see and experience the support and guidance they have surrounding them. A prosperous franchisor calculates every move and seeks to minimize risks while strengthening rewards for everyone who has invested in their brand. With this in mind, showing franchisees that their voice matters will go a long way. It is also vital for them to see that there are multiple people on the corporate team who are rooting for their success and that resources are available at their discretion. When the system succeeds, the brand thrives and that success will be passed on to all. Roberto Ortega is the CEO and cofounder of KLA Schools, a Reggioinspired early childhood education franchise. http://klaschoolsfranchise.com
Franchising USA
childr en’s fr anchising
Page 89
childr en’s fr anchising
H unting ton Lea r ning C enter
Huntington
wants to help you help students Founded in 1977, Huntington Learning Center has been helping prepare students reach their academic goals for nearly four decades. Through its tutoring and test preparation services, Huntington has helped tens of thousands of students improve their grades and pass difficult tests with consistently outstanding marks. The brand’s dedication to giving students an academic leg up has earned the company a deserved reputation for quality tutoring along with high praise from parents, educators and the students that it helps. At Huntington, franchisees benefit from the business’ reputation for excellence and don’t need any prior education experience, in fact most come from prior careers in the
Franchising USA
corporate world. They are recognized in the communities they serve as a premier tutoring solution and are able to achieve impressive financial success—the average Huntington franchise earns $495K a year, 61% more than the closest competitor. Also, while few franchisors offer in-house financing, Huntington does so and you can get started for under $100K.
Growth Industry The tutoring and test preparation industry has been called “immune to recession” by the New York Times. In 2014, the total market was $4.3B. Indeed, it has grown every year through the Great Recession of 2008—parents prioritize their children’s education. With the population of school age children expected to continue to grow through 2050, the long term prospects for tutoring are strong. Additionally, there is a continued need. For example, the United States lags on international achievement measures—our students rank 26th in math,
21st in science and 17th in reading on the PISA tests. Similarly, only 43% of SAT takers in 2014 meet the College Board’s College and Career readiness benchmark. Against this backdrop of industry growth and need, Huntington franchisees have continued to help their communities and have grown by 32% from 2008 to 2014.
Making a Difference Huntington allows franchisees the opportunity to help students in their community build the skills, confidence, and motivation needed for success not only in school, but for the rest of their lives. This makes becoming a Huntington franchisee personally rewarding in addition to being financially rewarding. Huntington’s programs combine technology with traditional educational methods developed and proven over nearly four decades. Using their proprietary methods, Huntington shapes young minds
and prepares them for the academic and career achievements they strive for.
With You All the Way Pre-opening support from Huntington’s in-house operations team, which works closely with franchisees, helps them set up their tutoring and test preparation center. Huntington provides initial and ongoing training for franchisees and their staff, both in-person and online. Every franchisee is assigned a dedicated franchise business consultant to help ensure their success. Huntington franchisees receive in-person visits, frequent phone conferences, and local, regional, and national training. Franchisees also reap the benefits of Huntington’s national call center, manned by a team of educational specialists dedicated to handling all phone inquiries with the goal of scheduling initial appointments with students and driving business into franchisees’ centers.
“Every franchisee is assigned a dedicated franchise business consultant to help ensure their success. Huntington franchisees receive inperson visits, frequent phone conferences, and local, regional, and national training.” Meanwhile, Huntington’s conference coaches prepare the brand’s franchisees for their initial conferences with parents to increase the rate of student enrollment.
Using Technology Huntington’s proprietary Center management and reporting systems assist franchisees in managing the day-to-day operations of their Centers and in delivering tutoring excellence. For example, Huntington’s proprietary “Navigator” is a next generation instructional system that delivers personalized learning, high impact teacher management, streamlined reporting and instantaneous reporting. It yields better student results while increasing profitability through both revenue gains and cost savings. Franchisees are able to
manage their Centers using a dashboard that presents all of the Center’s vital statistics, making it easier and more efficient for franchisees. Lastly, Huntington’s marketing team provides franchise owners with customized marketing strategies for their local markets as well as a full suite of tools and high impact materials. With their deep industry expertise, they know the “who, what, where, when, why and how” of advertising for tutoring that will most effectively and efficiently drive leads to your location. With so many positives, there’s never been a better time to get into the business of helping students realize their academic dreams. http://www.huntingtonfranchise.com/
Franchising USA
childr en’s fr anchising
Page 91
childr en’s fr anchising
Kyle Gjersee, COO, Top Level Management
Is Child Care the Next Big Franchise Industry? For young, working families the choice between cities as opposed to suburbs has become an increasingly clear one. According to employment data reported by the Census Bureau, employment in city centers has been on the rise. People want jobs that are a quick commute from their homes, something city life is known for. As a result, a growing number of young families are taking root in city centers. While this growth will overall lead to healthier cities, it can take a while for the city infrastructure to catch up. Families like Alison Qualter Berna’s and Allison Schlanger’s have noticed this slump in development. Playtime has almost exclusively meant city parks for them. However, that’s not always a plausible solution, they realized that “there wasn’t a place to go when it rained, when it snowed and when it was 97 degrees.” The need for these kinds of family and community spaces is apparent and steadily increasing. Peter Harnik, the Director of The Trust for Public Land’s Center for City Park Excellence agrees, “Though parks are expensive to acquire and maintain in dense cities with high property values, their residents are even more in need of open spaces in which to exercise, unwind, and socialize.” Big cities seem to be at a loss when it comes to this increasing community need for public space. Many families have found the solution in the childcare industry, looking to afterschool programs, classes, and recreational activities. The President’s Council of Economic Advisors’ 2015
Franchising USA
report on the Economics of Early Childhood Investments, found high quality educational resources for children can bring as much as an $8 economic return on every $1 invested. How do we then take what we know and apply it to our burgeoning cities? For many entrepreneurs this market need was an opportunity for them to make a difference in their communities. Alison Qualter Berna, and Allison Schlanger did just that, “the dream was to create a career that would merge our professional interests with our children’s lives, and a life where it was not only ok to bring our kids to work, but where their presence would add value to what we did on a daily basis -and so apple seeds was born.” apple seeds is a destination for young families to come play and learn in a safe and controlled environment. The response to their core concept of safe indoor play space and educational programs for younger children was so positive it led the founders of apple seeds
to believe this concept belonged in other markets across the country. When the franchise management company, Top Level Management (TLM), was hired to assist them in this effort, it became clear that franchising would be a natural vehicle to expand their business quickly. “Their core concept is solid, their business model is easy to replicate, staff employment is viable across the country, and this concept is needed in many markets,” says Colette Bell, CEO and Founder of TLM. Currently, the growth of franchise employment is exceeding the growth of employment in all businesses, as it has for the past four years. Locally owned franchises are becoming a great way to address community needs while also implementing quality control. And, in an industry like childcare, quality of the care is of the utmost importance. Expect to see more franchises like apple seeds begin to fill this need for indoor play spaces and educational programs in urban areas.
Join the #1 Revenue Producing Tutoring Franchise Our franchisees earn 61% more revenue than the competition, no previous education experience required. Own a Huntington franchise for under $100,000! Choose the franchise with: � Easy Franchisor Financing Available
� Exceptional Training and Franchisee Support
� Low Investment
� Superb Technological Infrastructure
� Over 30% Average Franchise Revenue Growth, 2009 - 2014
� Over 37 Years of Experience Helping Children Succeed!
Our Students Experience Great Results! Own a Huntington franchise and make a difference in the lives of students and families in your community. It’s a financially rewarding business you can feel good about. Eileen Huntington, Co-Founder, Huntington Learning Centers Inc.
CONTACT US TODAY!
1 800 653 8400
Franchise@HLCmail.com HuntingtonFranchise.com Connect with us on LinkedIn *Based upon comparison of 2013 average revenues from: Sylvan ($310K), Kumon ($285K), Mathnasium ($192K), ClubZ! ($135K). The following were also evaluated and revenue could not be estimated: Eye Level, Grade Power, JEI, Tutoring Club and The Tutoring Center. Source: 2014 FDDs