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FranchisingFeature business services
febr u ary 2 0 1 7
Pool Franchise Focuses on
Franchisee Growth advance your franchise by outsourcing your HR Franchising USA
busin ess serv ices franchising fe at ur e
what’s new!
AdvantaClean CEO Shares Lessons Learned From Appearance on CBC’s Undercover Boss
After a schedule change derailed his planned reality television debut last year, the CEO of AdvantaClean Systems Inc. appeared on an episode of CBS show Undercover Boss that aired on January 11. The episode featuring entrepreneur Jeff Dudan and his Huntersville-based business was initially slated to be released last May as the series’ season finale, but the installment was not aired as scheduled. The episode featured Dudan, disguised as an employee named “Dusty,” crawling into tight spaces under houses, cleaning filthy air ducts and wading in to clean up a water damaged home — all while receiving unfiltered feedback from workers about the company and Dudan himself. Dudan reported the experience was both
exhausting and rewarding, with travel and long hours. “After a while, you get used to the cameras, and you learn to throw yourself into the experience at hand,” Dudan said in the May 2016 interview. “I would definitely do it again.” “What we learned was meaningful and will definitely help us as we open new markets with more outstanding AdvantaClean franchise business owners,” he said. AdvantaClean offers environmental services for residential, commercial, institutional and governmental properties, including emergency water or mold removal and air duct cleaning. Dudan, a native of the Chicago area who played football at Appalachian State University,
launched the business in 1994. It has since grown to include 222 franchised territories operating in 31 states, according to a recent news release from the company. advantacleanfranchise.com
The Growth Coach Continues Franchise Expansion into 2017 Over the years, The Growth Coach has carved out its own niche as the premier coaching brand facilitating change for small and medium sized businesses. By implementing a carefully developed proprietary coaching system that addresses life balance, personal goals, and accountability while leveraging the power of learning in a group setting, The Growth Coach has seen its franchisees develop strong businesses of their own while building up others in their communities. In 2016, the brand added strong master franchises in Latin America and Asia to its team, bringing its presence worldwide to an impressive 16 countries, including the United States. With more and more entrepreneurs seeking
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help to increase their capacity and that of their managers and sales teams, 2017 looks to be a year of expansion for the franchise. The Growth Coach will be targeting several additional countries with master franchise opportunities as well
as developing many domestic territories with coaches from a variety of business
backgrounds poised to make a difference in the business of others.
growthcoachfranchise.com
45th-year Innovations for Industry Leader
Local Door Coupons Surpasses One Million Dollar Revenue Mark from Franchise Sales
Launched on June 19, 1972, Our Town America, the nation’s leading New Mover Direct Mail Marketing franchise, is celebrating its 45th anniversary this year. CEO Michael Plummer, the Our Town America corporate staff, and each of the more than 50 Our Town America franchisees around the country are proud of the company’s 45 years of growth and success. The entire Our Town America franchise family is joining forces to celebrate in style by introducing a brand new 45th anniversary edition Welcome Package envelope and gift certificate. While the core concept of connecting new families with local businesses has remained the same since inception, the program itself has evolved to the technologically innovated leader it is today. Additions of digitally tracked certificates, highly refined targeting down to the demographic specific to the business, and even POS integration for brands, have enabled Our Town America to stay at the forefront of their industry while keeping their core values and mission the same. So now, they say, it’s time that their look reflects the innovations. This new 45th anniversary edition Welcome Package envelope (pictured above) possess a sleek, classy and professional look custom-built to help all Our Town America clients make an even bigger impression on new movers in 2017. And speaking of gift-giving, Our Town America is celebrating its own birthday by giving back to new clients who become sponsors in 2017 – offering the first month of services for free and reducing the one-time set up fee to just $45.
Danny Nieves and Brian Tijerino’s business, Local Door Coupons, is a streamlined, modernized version of a traditional advertising concept. With 2016 coming to a close, the company has already surpassed $1 million dollars in sales – mainly stemming from franchise sales and royalties. The simplicity of Local Door Coupons has proven to be extremely attractive for franchisees and lucrative for small local businesses. In 2015, Local Door Coupons attracted the attention of social media mogul and investor, Jason Stone which resulted in Stone acquiring a large stake of the company. He used his prolific social media following to introduce his millions of followers to the LDC launch and potential franchising opportunities. Within 24 hours of announcing their new Franchise opportunity, Tijerino and Nieves were bombarded with over 200 franchise inquiries. Local Door Coupon’s headquarters has also experienced a growth in advertising clients as well. In the last year LDC has expanded their client list from small mom and pop businesses to national brands such as Subway, GNC, Marcos Pizza, Edible Arrangements, Denny’s, and Smoothie King.
The Our Town America team is excited to make 2017 their best year yet…and they can’t wait to see what they can accomplish in the next 45 years!
After successfully overseeing the opening of various franchises across the United States in big cities such as Atlanta, Houston, Washington D.C, Oklahoma City, Toledo, Arlington and Los Angeles the LDC headquarters is projecting to expand their franchises to an impressive 25 total locations by the end of the fourth quarter and over 100 locations by the end of 2017.
www.ourtownamerica.com/franchise-us
www.localdoorcoupons.com
Franchising USA
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A mer ica’s S w im ming Pool C ompa ny ( ASP )
Pool Franchise Foc on Franchisee Gro
for Overall Franchise Success
Focusing on individual franchisee growth rather than overall company growth has helped turn a one-man company into the first successful pool maintenance franchise in the United States. Founder and CEO of America’s Swimming Pool Company (ASP) Stewart Vernon has a simple formula for growing the company nationwide and that formula is to give franchisees the support they need to be successful on an individual level and keep the focus on their success. At ASP’s annual franchisee conference, which the company recently held, Vernon
Franchising USA
prefers to look at how much the franchises themselves have grown throughout the year rather than how much the company as a whole has grown. “Those are the metrics that we put first and foremost,” Vernon said during a recent interview from the company’s headquarters in Macon, GA, where Vernon started the franchise back in 2002. ASP cleans, repairs and renovates swimming pools in 23 states across the country. It began franchising in 2006 and currently has 100 franchise partners in about 250 different territories. Surprisingly, Vernon credits the success of ASP as a franchise to not really knowing how to create a franchise.
Getting Started Vernon describes himself as a lifelong
entrepreneur. He gave up playing baseball as a 15 year old so he could start a car washing business in his neighborhood. By the time he left for college, he had a multivehicle operation going. In college, the budding entrepreneur knew he didn’t want to attend grad school or get a career in corporate America. He wanted to start a business as soon as possible. It was almost by accident that Vernon stumbled into pool cleaning. An acquaintance casually mentioned that he should look into it as a business because the local pool cleaning businesses in Macon at the time overcharged people and offered terrible service. Knowing that all he had to do was offer better service and charge less, Vernon set out at 22 with a single truck, combing Macon for any sign that a home contained
cuses owth
ccess
“We try to be the one stop shop for homeowners who have a pool in their back yard.” - Stuart Vernon “Being young and ignorant as hell and being a hard worker, I dug in and we put in our first location,” the ASP founder recalled. That first location was sold to a banker friend in Charleston, SC who hated his job and who envied Vernon for making more money than him while also doing something he enjoyed for a living. It didn’t take long for the former banker to start making good money with his franchise and that led to Vernon recruiting his brother-in-law — who also hated his job — as ASP’s second franchisee. Vernon says it was after getting his second franchisee that he realized just how many people out there loathe what they do for a living and are just waiting for a low risk, high reward business opportunity to help them get unstuck from their corporate lives.
Making the Model
a pool in the back yard. Once he identified a home with a pool, he would directly market to that household to gain their business with his promise of superior service for less money.
It worked In just a few years, Vernon had 10 trucks on the road and had cornered the midGeorgia market for pool maintenance, garnering over one million dollars in revenue. He knew if he wanted to expand further that he would have to look into franchising, which he started studying in earnest in 2005. Vernon discovered that a couple of pool maintenance companies had tried to franchise their model, but had failed. So, he knew he had an amazing opportunity, but also a daunting task ahead of him.
With this epiphany of just how many people were looking to get out of the rat race and into their own business, Vernon specifically designed the business model to have low barriers to entry. To get started, he explained, there is no need to hire anyone or lease a building. Everything can be done out of a franchisee’s home. Making the business this easy to start, Vernon explained, enables ASP to bypass the two main fears of new would-be entrepreneurs: hiring people and leasing a building. “The beauty of the business is from day one, you can start it with one man, one truck. Low over-head, low risk,” he said. Once most franchisees get the hang of running the business and start to get more trucks on the road, they do tend to get themselves a building, Vernon noted. After 2006, the ASP CEO had seven franchise owners who were all much happier with what they were doing with their lives.
Now, Vernon targets these kind of white collar workers who have become miserable in their corporate jobs and who want to start their own business, but who don’t know how.
Pool School Rather than looking for people who have experience in the pool trade, Vernon noted, he wants well capitalized entrepreneurs. Most franchisees when they start have never cleaned a pool, he said, but that doesn’t matter because ASP has Pool School. Pool School is a campus at the ASP headquarters in Macon that has 12 different pools on it for the purposes of showing new franchisees how to clean and renovate pools. As long as franchisees are hard working and willing to learn, getting the hang of the business is easy.
Pool Ops To make things even easier for franchisees, ASP has created its own proprietary software called Pool Ops, which helps franchisees digitally run their businesses. And that business is all about offering homeowners a hands-off experience with their swimming pools, so they don’t have to clean the pool or balance the chemicals or bother going to the pool store. “We try to be the one stop shop for homeowners who have a pool in their back yard,” he said. About one quarter of franchisees’ revenue comes from renovating pools that are nearing the end of their lifespans, which involves redoing the interior shell and fixing up the exterior and equipment of the pool. By focusing on individual franchisee success, Vernon has grown ASP into possibly the easiest way for wouldbe entrepreneurs to become real entrepreneurs. www.aspfranchising.com
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BUSINESS SERVICES
franchising
e r u t Fea
Most business minded people consider the world of franchising, even those uninterested in starting their own company would look into the world of franchising some point in their career. Being your own boss could lead to a better work life balance and a bigger sense of freedom, something most of us strive to achieve in our jobs. A franchise can assure that quality of life because it’s already supported and succeeding. Investing in a franchise can create the type of work life balance we all dream about, plus people without any business background, could become a franchisee. More and more companies are leaning towards the world of franchising and
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creating a lot more options for franchisees to consider. It allows investors to follow their passion, while being successful with the support from head office.
That is a limitation to a business service
We tend to forget that there are a lot of different franchises available and a very successful and prosperous choice is a business services franchise.
serve in the area, there will be no profit.
Of course a business in itself is successful and running, but it depends on other services and companies to help keep it going. A business service franchise usually has a guaranteed set of clients, well-established businesses that have investments and contracts with their service providers. Investing in this type of franchise allows you the freedom to provide to your customers, without having to search for them. Before applying for a business service franchise, it would be wise to research their affiliates and how many companies you would service within the surrounding area.
industry, if there are not many companies in the surrounding area, a franchise may refuse an application. Without clients to
A problem first time business owners run into is losing customers or not having
enough, they could face a struggle with the overall economy or a misunderstanding with supply and demand. The business service industry is not dependent on
clients, but rather businesses and even if the economy is faltering, big name
companies will keep its doors open and continue to need certain services to succeed.
There are many different service
industries in the franchising field and
while providing a service to a well known company may be exciting, you can also
follow a personally passion in your choice of services.
“A technology servicing franchise usually has a well-established clientele but can also appeal to smaller businesses or one incident situations.”
Technology Services
background in technology, it would be
Nowadays most businesses are dependent on some form of technology to function properly and turn a profit. From debit machines, to the internet, computers and surveillance cameras. Our world is dependent on technology and the business world has become more successful due to innovation.
beneficial but not crucial.
It’s nearly impossible to run any type of company without depending on technology. A technology servicing franchise usually has a well-established clientele but can also appeal to smaller businesses or one incident situations.
franchise would create a lot of competition
Employees would be trained within their field and as a franchisee; there would be a lot of liberty to allow others to run the business. If you have a passion or
There are many different fields to consider within this industry alone and a lot of
competition as well. It’s likely that a lot
of internet service providers are already well established within most of the
communities, so it’s unlikely to enter a
franchise with them. While starting a new and a lot of businesses already have a
contract with big end service providers. However it is worth considering because
mobile and internet franchises create a lot
of profit. Definitely research the big names and see what is available in your area,
speak with a franchise representative, if this an area you would like to consider.
Cleaning Another service provider that will not sway with the ebbs and flows of the economy is a cleaning service. Though some companies may tend to take over their own cleaning and maintenance during a rough patch, big cleaning franchises have an established clientele with long term contracts. Again, if this is a field you are considering, it is best to do research and look at contract stances and what clientele the franchise has guaranteed agreements. Hotels usually use corporate cleaners, as do big businesses, so you have to consider the available clients surrounding you and where you want to set up. As a franchisee, this business opportunity can run on its own, while you can create
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areas and are unlikely to create more within their field. It’s the type of franchise that needs a lot of research, especially with the wide variety of services, but the initial work pays off. A well-established franchisee looking for a different field of interest could likely pick up a service business and balance all his franchises without much stress or loss of home life. Of course it is great for a first time investor and is also suitable for long term franchisors who are looking for more. Overall, the business service industry is a safe bet, while also being a profitable one.
a decent work life balance. The hours of operation will be dependent on a lot of the businesses because they may prefer services during the after-hours. However, most floor work is provided by employees.
Shipment and Delivery A lot of companies are dependent on shipment and delivery. Even offices depend on shipping and delivering services for supplies, whether it be pencils, or paper or coffee or toilet paper. Once again, this is a franchise that may or may not have a set of clients contracted to a service, which will easily create a successful path to profit.
There is a lot of competition within the shipment and delivery industry, making it important to perform a lot of research before hand and it would be suggested to talk to a lot of other franchisees within the field. For those considering a franchise, sometimes the business service is easily forgotten but not reasonably so. It’s easy to run, creates a great work and life balance, while also has a proven success rate. There is less stress depending on the established clientele and the franchise branding gives an investor an upper hand against small businesses. However, a lot of these franchises are well-established in certain
“There is a lot of competition within the shipment and delivery industry, making it important to perform a lot of research before hand.”
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ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill 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.
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Jay Feitlinger, Founder & CEO, StringCan
You Can be Brand Compliant Without Sacrificing Your Own Identity Many people become franchisors because they see an abundant business opportunity and the ability to grow a company without having to manage every component and location on their own.
When you start to dig down to the heart of it all, many of these issues revolve around one thing: brand compliance (or a lack thereof). The franchisor expects all of its locations to be “on brand,” while the franchisee wants some level of independence and creative expression. Is it possible to have a thriving relationship between the two? The answer is… absolutely yes. And the entire brand can flourish as a result. Here are four tips for successfully navigating this challenging, yet highly rewarding, set of circumstances.
Others become franchisees because they love a certain brand, and begin to envision themselves enjoying a career path with that brand that has largely already been paved for them. But somewhere along the way, these dreams can get broken – on both sides. Conflicts arise, tensions get high and the entire company suffers as a result of these soured relationships.
Love the one you’re with
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Perhaps the most important thing for both parties involved in a franchise to remember is that their individual perspectives may be different, but their ultimate goal is the same. They each want individual franchise locations to grow, and they also want the larger organization to succeed.
Secondly, you’ve signed the paperwork and hitched your wagon to one another – legally and financially. So instead of nitpicking and finding faults in the other person, come to the table ready to share ideas and to listen to them as well. The more you actively work on appreciating the benefits the other person brings you, the less you’re likely to finger point and increase internal friction. A harmonious relationship all starts with this open and appreciative mindset.
“Instead of inhibiting one another, work side by side to fill needs and grow each location so the brand is like one strong tree with different, yet complementary branches.” needlessly drag your entire organization down. The solution is to work in tandem, peer to peer. For example, franchisees have been known to seek outside help from external marketing agencies or sales consultants when they feel they’re not equipped in these areas. They see this as reasonable, but the practice often ends up raising the ire of the franchisor. After all, they see it as outsiders intruding on brand management without understanding the brand guidelines and goals.
Listen to your Customer Insiders Sometimes franchisors get caught up in thinking they know their brand best, since they’re at its helm. It can be easy to forget that it’s the franchisees who are actually on the front lines, interacting with customers on a daily basis. In fact, the owners of your individual franchise locations can offer some highly unique insights into the motivations, preferences and needs of your customers. It’d be wise for all franchisors to regularly invite feedback from these folks, and to truly consider responding to the information in order to improve the business. Make a point to keep the conversations non-judgmental, so that franchisees can feel free to express concerns and doubts, as well as what’s positive.
Work in Tandem The franchisor/franchisee relationship can be especially sticky because it’s not a traditional working union. Both parties feel like they are the rightful owner of the business (and they both are, just in different ways). But power struggles will
Instead of taking this approach, a franchisee should first go to his franchisor. Explain where you feel your training or support is lacking, along with what you need to succeed. If you would like a new piece of marketing collateral that’s unique to your particular location, for instance, ask your franchisor if she can help you get that. As long as you keep your lines of communication open and ask for what you need, you won’t have to keep any secrets or risk angering your franchisor. And if the franchisor truly wants you to succeed (as she should), she’ll get you what you need or put you in touch with someone who can.
Customize when warranted Most franchisors have a standard set of “customizable” marketing pieces that they offer to their franchise locations to use. The problem is that these are typically extremely limited. They might leave placeholders so that the location owner’s name and the name of the town can be slotted in…but everything else is often kept completely standard. This is a disservice to everyone! Instead of making everything so “cookie cutter,” try creating pieces that are truly customizable but still
Jay Feitlinger
brand compliant. They can still begin as templates, but should allow for differences that develop thanks to geographical locations. Your marketing and sales pieces should allow for freedom – within the greater brand’s boundaries. When it comes to the franchisor/franchisee relationship, keep in mind that you’re both on the same team and want to win. Keep the dialogue open, and remember that brand compliance is necessary for a franchise and its parent organization to be successful, but that individuation is also key for market appeal and sales. Instead of inhibiting one another, work side by side to fill needs and grow each location so the brand is like one strong tree with different, yet complementary branches. Franchisee turned online marketing agency owner, Jay Feitlinger is Founder & CEO of StringCan Interactive, a digital marketing agency with offices in Arizona and France. StringCan helps multi-location franchise businesses reach more customers and achieve their inbound marketing and online advertising goals. StringCanInteractive.com
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O ur Tow n A mer ica
Franchise Celebrates 45 Years of
Helping People Get Settled into their New Communities Franchising USA
A Florida franchise that specializes in helping people get settled into new communities is going to be moving into a new community itself soon. Our Town America celebrates its 45th anniversary this year and it’s just about to close a deal on a new 44,000 sqft space for its headquarters in Pinellas Park just outside of Tampa. The pending move and the milestone anniversary are just two elements of what promises to be a busy year for the franchise. Our Town America connects people who have just moved into a neighborhood with local businesses in that neighborhood by direct mailing the new resident a
welcoming envelope filled with gift certificates from the local businesses. “We make relationships, essentially,” CEO Michael Plummer Jr. said during a recent interview from the franchise’s headquarters in Pinellas Park. But the good fortune goes both ways. Not only do new community residents get great deals and a reason to go explore their new area, the local businesses get a chance to bring in new customers.
All New Look The franchise has recently undergone a complete overhaul of its brand, with a newly designed Welcome Package envelope and gift certificate look. Deciding on the new look of the brand was a huge undertaking for the company, Plummer said. While Our Town America is now in its 45th year of business, however, they started franchising in 2005. Today, it has 50 individual franchisees, with some of them running multi-unit franchises. Most of those franchises are home-based. Plummer said people who have a sales background would be a good fit for an Our Town America franchisee, but a sales background isn’t necessary, as the business’ focus is on building relationships. “Someone who is willing to go out and build those relationships would do well,” the CEO noted. “So, we’re looking for a good community organizer, maybe somebody who is involved with a ParentTeacher Association or a real estate agent, for example, somebody who has the ability to go out and talk to people.” Plummer pointed to his own sister-inlaw, who has been an Our Town America franchisee for less than a year, as a good example. Having worked behind the scenes in the insurance field for 25 years, she has zero sales background. However, because she’s so good at connecting with people, she’s doing particularly well with the company. Our Town America has a goal of having a
“We’re the leaders and we’re the ones people try to imitate and emulate because we have forged this innovative path for a long time in our niche.” - Michael Plummer Jr. franchise in all major metropolitan areas, Plummer noted, but it also works well in smaller towns. Any markets that have a lot of people moving into the area are ripe for an Our Town America franchise.
overwhelming and unhelpful when trying to decide where to go. The direct mail gift certificates, on the other hand, offer a more personalized connection to local businesses.
He specified Texas, North Carolina, Utah, New Jersey, the greater New York metropolitan area and Boston as growing markets that Our Town America wants to get into right now.
“In a more social age where people feel like they’re connected because they’re online all the time, people aren’t really connecting,” Plummer mused. “People aren’t really making those personal connections.”
Real Connection Even though people have what Plummer described as a plethora of options online to check for recommendations for restaurants and other businesses in their new neighborhoods, there is still room for a direct mail service that delivers free housewarming gifts and draws those businesses out from the crowd like Our Town America. Many of the online resources, he noted, are full of reviews that can become
Often, he pointed out, when people move into a new city, it can be an overwhelming experience because they’ve moved for a new job or because of a life-changing experience like a divorce or a death in the family. People are uprooting their lives and it can be difficult for them to get settled into a new neighborhood because they don’t really know anyone. Our Town America offers that personal connection to them at a tumultuous time.
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O ur Tow n A mer ica
“We’re looking for a good community organizer, maybe somebody who is involved with a ParentTeacher Association or a real estate agent, for example, somebody who has the ability to go out and talk to people.” - Michael Plummer Jr. On the other side of the equation, it helps to replenish the customer bases of local businesses. In any given year, a business will lose about 18 percent of its customer base because of people moving away from the neighborhood, he noted.
of experience and expertise that Our Town America boasts.
The Our Town America Difference
“We’re the leaders and we’re the ones people try to imitate and emulate because we have forged this innovative path for a long time in our niche,” Plummer stated.
While there are other direct mail options that try to replicate what Our Town America does, Plummer mentioned, no other company gets it quite right and that’s partly because they don’t have the 45 years
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Having been doing this so long, the company knows how to do welcoming packages better than anyone else in the industry.
To get trained in the art of connecting neighborhood newcomers and local businesses, the company offers their three-
week Coming to Town training program. This program entails twice weekly phone calls with new franchisees to coach them on sales scripts and to ensure they’re getting their businesses set up properly. After that, they get a solid week of salesfocused training in Pinellas Park followed by a week of in-field training in their markets with a top Our Town America franchisee. The franchise also helps new recruits with appointments, growing their client list, development of marketing materials and more. With their rebranding efforts, their new headquarters and their milestone anniversary so much, Our Town America has positioned itself for success for the next 45 years. www.ourtownamerica.com/franchise-us
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Haley Crum Blanton, CSP, Executive Vice President, FrankCrum
How to Advance Your Franchise by Outsourcing HR
Saving Time and Money Allows Focus on Your Business Gr
Although you may have been operating your franchise for some time, it’s possible that you haven’t considered outsourcing your HR functions – or you may only be outsourcing individual functions such as payroll. You know it’s not practical (or cost effective) to get all the professional HR services you need by hiring specialists, but
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when you try to stay on top of these issues yourself, you can open yourself to liability, fines and sanctions; not to mention the loss of valuable time better spent growing your franchise. You may think you don’t have an option – that a franchise owner needs to wear all the hats. Many owners struggle to squeeze out good profit margins, are short staffed or are new to an ownership role. There just aren’t enough hours in the day to do everything, particularly when your role as an employer introduces HR tasks to your daily to-do list. Just think about it. Do you feel basic HR processes like payroll, benefits selection/ administration, workers’ compensation, employee relations, compliance and hiring
account for more of your time and budget than you’d like? Time and budget that might be more profitably spent on growing your franchise? Do you worry that your franchise isn’t on top of these tasks to the extent you’d like? Although HR outsourcing takes many forms, the most comprehensive is that of a Professional Employer Organization, or PEO. A PEO is a “one stop shop” for HR functions, offering workers’ compensation, payroll, benefits and comprehensive HR assistance. PEOs leverage their experienced people, their processes, technology and insurance products to take away the mystery of HR, minimize your liability and allow you to focus on your franchise operations.
“HR administration typically costs an average of 8.5 percent of your gross payroll. Contracting with the right PEO can reduce that by at least 50 percent, while giving you the benefit of working with HR experts.” benefit of working with HR experts. Through the economies of scale a PEO offers, you can lower the cost of benefits administration and workers’ compensation insurance, while realizing other efficiencies that will boost your bottom line. 3. Grow your business: Research published by the National Association of Professional Employer Organizations indicates that PEO clients have higher growth rates than other small businesses. That’s due in great measure to the fact that these business owners are able to focus their energy and efforts toward their business, their customers and their profitability.
s Better rowth How a PEO can benefit your franchise We’ve outlined here the most important benefits PEOs offer to help you decide whether this is a viable option for you: 1. Save time: Your time is too valuable to spend it finding the right workers’ compensation coverage, processing payroll, filing reports and taxes, selecting and managing employee benefits and worrying about HR liability issues. Imagine how much more profitable (and enjoyable) your franchise would be if you were able to focus on your core business. 2. Save money: HR administration typically costs an average of 8.5 percent of your gross payroll. Contracting with the right PEO can reduce that by at least 50 percent, while giving you the
4. Reduce risk and liability: Whether it’s avoiding hiring mistakes, minimizing unemployment costs, avoiding on the job injuries through a robust risk management program, ensuring that payroll reports and tax filings are timely and correct, understanding how to maximize employee performance or so many more HR concerns, outsourcing through a PEO provides knowledgeable specialists to consult with you, often at no additional cost, to help safeguard your business from liability. 5. Attract and retain the best employees: Smaller businesses like franchises often find it difficult to level the playing field and compete in hiring with larger businesses that are able to offer more comprehensive HR and employee benefits programs. A PEO can provide you with a wide range of employee benefit options as well as online tools that allow your employees to have 24/7 access to their personal HR information, while giving you reports
Haley Crum Blanton
and information that help you manage your HR program. However, not all PEOs are created equal, and not all offer the same services and pricing arrangements. As you consider your options, you may want to study the experience (www.frankcrum.com/peocase-studies/) of other business owners. Maybe it’s time to take a look at how a PEO can get you back to growing your franchise and losing some of those extra hats you’ve been wearing. After all, you didn’t buy your franchise to become an HR specialist! Haley Crum Blanton, CSP, is Executive Vice President of FrankCrum, a national professionalemployer organization (PEO) and President, FrankCrum Staffing. A certified staffing professional, she earned a bachelor’s degree in Business Management at Eckerd College and a J.D. degree from Stetson University College of Law. She is a member of the National Association of Professional Women. www.frankcrum.com
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Bob Caramusa, Chicago area franchise owner, Image One USA
Advice for Finding and Growing Your Next Business Services Franchise
The decision to become a franchise owner is more than just about numbers; it’s about finding long-term business allies For anyone reading this magazine and considering buying a franchise, congratulations—you’ve taken the first step of a long journey. Now comes the hard part: deciding which business to choose. Many elements factor into that decision, including your budget, location, professional experience and interests. I found a franchise family through purchasing a business services
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franchise. And, I believe many of you may also be a good fit to run a business services model, especially if you’ve grown comfortable in the B2B setting professionally.
Don’t say yes until you’ve said no to enough others
I’d like to first offer advice to those searching and also speak to those already in the trenches with a services franchise business. Doing your due diligence and finding the right franchise is only half the battle; the other half starts once you sign that franchise contract and venture out as a new business owner.
I started my search for the perfect franchise the same way as you: I combed through franchise magazines, searched online for the right option and narrowed it down to a few. And then, I found my match in Image One USA, a commercial cleaning franchise headquartered not far from where my wife and I live in the Chicago suburbs. They were looking to expand and I was looking to take control of my future and be my own boss.
Here are some words of wisdom to both present and future franchisees in this sector:
The deeper I researched and the more I spoke with Image One, I realized this was much more than just a janitorial
“It’s kind of like dating and finding the right spouse: you’ll know when you know.” schedules of the decision makers at the companies with which you’d like to do business. While it’s not necessary to the success of my franchise, I come from a sales and marketing background, which really helped me get started. Many of my first initial conversations with Image One were about marketing. What’s been great is that they’ve always been willing to listen to my ideas and feedback. Most franchisors are going to provide you with templated materials to help you market your products or services, but the best ones are going to have the time to conduct constructive conversations about what’s working and what isn’t.
Treat your clients like royalty… and expect the same from your franchisor services business. The franchise supplied a thorough operations manual, offered extensive training, gave franchisees customer support and guidance every step of the way. And so, I took the plunge. There were plenty of other franchise models (in industries other than business services) that I said no to, whether during my preliminary research or, later, in a face-to-face meeting. It’s kind of like dating and finding the right spouse: you’ll know when you know.
Market your business until you feel like you can’t anymore— and then spend more time marketing It’s hard to underestimate the importance of marketing your local franchise when you’re in the business services sector. Not only are you competing against other businesses, you’re also fighting the busy
So much of a business services model is about landing clients. But, landing is just the first step. What’s most important is to keep those clients long-term, and add to that core base of clients. To do that, you need to treat them like royalty—remember that they are the reason your business makes money, the reason you can pay your bills and support your family. As a franchisee, you should feel the same way you want your clients to feel about you as a services provider. Franchisors are in the business of creating opportunities for franchise owners to thrive; that’s what keeps them expanding and growing. What works best in my experience is to keep an open line of communication between you and your franchisor. If there are ever problems—and there will be, that’s the nature of business after all— bring it up to your franchisor right away. If you’re with a good one, they will resolve it quickly and effectively.
Bob Caramusa
Make sure you have a plan beyond those first few months One of the things that most impressed me with my franchisor was that they had a plan in place for supporting me not just during my first quarter in business, but for my first year—and even my first few years. It helped me developed my short-term and long-term business plan. And, as a franchisee, you really do need to ensure that you have a direction that is in line with your franchisor but is uniquely yours. I’m proud to say that my revenues have increased dramatically over the last few years. While it took time and some growing pains to get there, I’m on pace to be in a great spot as a business owner, employing others, serving a growing number of clients and operating a welloiled business. The franchisor-franchisee relationship is not always going to be a bed of roses, but when you find the right match, it can be a rewarding reciprocal arrangement that just makes strong financial sense. Bob Caramusa is a franchise owner with Image One USA, serving businesses and organizations in Chicago’s Northwest suburbs. He is the proud recipient of Image One’s 2015 Franchisee of the Year Award, a franchise with nearly 100 locations across Chicagoland and in Cincinnati, Denver, Detroit, Fort Myers, Nashville and Orlando. imageonefranchise.com
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Matthew Jonas, President, TopFire Media
Not All Franchise Brands Shine How strategic messaging can spur growth for a business services franchise Franchising USA
Driving down a bustling city street, it’s easy to identify businesses that are part of large franchise systems. There’s McDonald’s, Subway, Burger King and KFC, to name a few; not to mention Ace Hardware, Anytime Fitness, SportClips, and Jiffy Lube in the nonrestaurant franchise sector; but what about the others? What about the franchises that make up a good majority of the industry, that most average consumers aren’t even aware of?
Many of these business concepts fall into a different franchise category, frequently identified as business services. They include anything from commercial cleaning, office suppliers, small business tax providers, and a whole lot more. While these business service companies play a critical role in the franchise industry, and frankly the small business landscape as a whole, they often fall victim to characterizations that don’t justify the importance they play in the American economy. Sure, it’s easy to see why a franchisee prospect may be dazzled by the glitz and glamour of a distinguished restaurant franchise, but in reality, those lesser known business services franchises have just as much to offer, if not more than any other in the industry.
Engaging an Online Audience Nearly two billion worldwide have a social media profile, with those users and platforms having many different and unique purposes. Twitter is a place to acquire quick snapshots of information; Facebook uses sharing options and video publication to connect members; and LinkedIn connects professionals to those with like-minded interests. In order for business services franchises to connect with social media users, no matter the platform, they need to create thoughtful content. By developing messaging that is valuable to those users, a brand positions itself as a leader in the industry, despite its size or recognition. But, this isn’t unique to business services — this is a marketing tactic used by nearly every franchise concept. What sets business services franchise concepts apart is the ability to boast a typically low investment-to-return ratio. Rarely do restaurant investments teeter below the $1 million mark – acknowledging too that’s on the low end of the scale — while business services franchises seldom exceed that investment. Of course, return on investment depends on a number of other variables, but just recognizing the vast difference between
initial investment and capitalizing on that message, business services franchises have a marketing advantage to those high-cost, high-profile competitors. These messages must also be mirrored on a franchise recruiting website. If a franchisee prospect is attracted to a particular type of messaging — like financial performance indicators — through social media advertising, they’ll expect the same from the franchise website. The trick is getting them to spend quality time dissecting the information on a website and converting into a franchise lead.
Capturing the Mind of the Media While a well-developed public relations campaign won’t directly relate to lead generation for a business services franchise, public awareness and brand recognition will. Public relations is a lead influencer, and as such, plays a significant role in attracting franchisee prospects. With hundreds of franchise concepts in the United States alone, a brand’s ability to set itself apart with its unique selling proposition is critical. For business services franchises without the pizazz of a well-known and acclaimed franchise system, self-promotion and brand building becomes a hard-fought process requiring patience, creativity and dedication — all ingredients of a great PR campaign. Developing an influential campaign, however, is easier said than done, especially for the emerging business services franchise. And, it’s important to acknowledge that there is a significant difference between a franchisee prospect and a media influencer. While the prospect can be attracted to a particular franchise concept because of financial performance data, a reporter will throw that information into the pile of “things they don’t care about.” Instead, recognize that it’s not a reporter’s job to promote a particular business or service, and make the outreach effort about how they will benefit from writing about the proposed subject.
attention can stem from developing a comprehensive industry report or whitepaper that analyzes an industry as a whole, instead of one company’s particular success or failures. Overly promotional material is about as useful to a reporter as disappearing ink. While there are a variety of other ways a business services franchise can generate interest from prospective franchisees, nothing dominates quite like a polished marketing message. There’s no reason a business services franchise should get any less of the limelight than that of a popular restaurant or clothing store, and when the right messages reach the right people, they’ll listen. Matthew Jonas is the president of TopFire Media, an award winning, integrated public relations and digital marketing agency specializing in franchise marketing and consumer branding. Together with the leaders of iFranchise Group and Franchise Dynamics, Matthew established TopFire Media to provide a strategic and synchronized method for digital marketing in the franchise industry. As a digital marketing strategist with over a decade of in-depth experience in SEO and PPC, social media publishing, conversion-based marketing, inbound marketing, sales management, and online lead generation, Matthew has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com
Accomplishing any level of media
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