FranchisingFeature business services
tips for a more
successful franchise renewal season the role of
promotional products
as a marketing strategy
febru a ry 2019
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The McLean Group Plays Key Role in Tint World® Names Home Services Consolidations 2018 Franchisee of the investment opportunities; however, Harvest Partners’ acquisition of the many lack the size and scale that would Dwyer Group seeminglyYear acted as a catalyst for accelerated consolidation among home service franchisors. The McLean Group recently represented Outdoor Living Brands on its divestiture of Mosquito Squad to Authority Brands, a portfolio company of Apax Partners. The Mosquito Squad acquisition represented the third home services add-on acquisition for Authority Brands (Homewatch Caregivers and America’s Swimming Pool being the prior two). Given the fragmentation among home services franchisors, the market is ripe for consolidation. This trend provides smaller franchisors an attractive exit or partnership opportunity as well as the professional “backbone” of a larger franchisor to accelerate future growth. Notably, home services franchisors are fielding inbound interest from private equity firms seeking
identify them as standalone investment opportunities for the typical private equity firm.
In advising Outdoor Living Brands, The McLean Group evaluated potential offers from buyers considering acquiring its entire business as well as just Mosquito Squad, its largest brand. The McLean Group’s analysis ultimately found that in selling just Mosquito Squad, Outdoor Living Brands could unlock substantial value for its shareholders while enabling the company’s existing senior management team to continue to develop its four other brands: Archadeck, Outdoor Lighting Perspectives, Conserva Irrigation and Renew Crew. The McLean Group franchising practice team anticipates that consolidation will continue to accelerate among home
services franchisors as well as in in other franchise sectors, based on five other franchise M&A deals the firm closed in 2018. For more information, visit mcleanllc.com.
Motivational Speaker, Les Brown, Partners with Hossein Kasmai’s Franchise Creator as a Brand Ambassador
Franchise Creator has partnered with legendary motivational speaker, Les Brown, as their new Brand Ambassador. Together they hope to share their mutual vision of empowering business leaders to take action, and make their professional dreams come true. Les Brown once said, “It’s necessary
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that you align yourself with people and attract people into your business that are hungry. People that are unstoppable and unreasonable.” That is why Les Brown has teamed with Franchise Creator, a leader in the franchising industry, to promote the business model of franchising and help others expand their business to a reality they once thought unimaginable. Franchise Creator is led by CEO Hossein Kasmai, a leader in the franchising world. “After selling my company, I wasn’t content with being retired. I wanted to help people realize their dreams, essentially the American dream, just as I had done,” said Hossein Kasmai. “I sincerely believe in the franchising model and through Franchise Creator we make sure people
get the proper help they need in order to grow their business exponentially. . . . Franchising is the extraordinary step for a business owner that opens the door to many possibilities. Les Brown has a history of motivating people to utilize the entrepreneurship inside them to take extraordinary steps in order to make a change in their lives and we’re honored that he has partnered with us to do just that.”, said Hossein Kasmai. For more information, please visit the company website at www.lesbrownfranchise.com. For more information about Franchise Creator, please visit the company website at www.franchisecreator.com.
Inkling Announces Results of Survey Highlighting How Businesses are Using Mobile to Better Train and Onboard Frontline Employees How are retailers and restaurant chains combatting turnover in a tight labor market, while also delivering exceptional experiences today’s modern consumers are expecting? They are swapping paper manuals for digital training tools, according to a Vanson Bourne survey commissioned by Inkling Systems, a modern digital learning enablement platform for frontline employees. In fact, among those surveyed, almost all reported implementing, or beginning to implement, mobile devices (99%) and mobile apps and software (97%) for their workforces. However, while many organizations are making strides to go mobile, nearly half still use paper-based training materials even though 90 percent agree that a switch from paper to mobile-based training is beneficial. “Today’s workforce expects immediate access to information that is personalized for their needs and available with the same engaging visual experiences they’ve become accustomed to through the use of smartphones and tablets,” said Jeff Carr, CEO of Inkling. “Increasingly, employers are recognizing the need to invest in digital tools and mobile devices that enable employees to search for information at any time and both learn and collaborate in the flow of their daily work.”
The survey also revealed the critical role frontline employees play in the workplace, with 90 percent of respondents agreeing that customer-facing staff are their best organizational asset for shaping the customer experience. For those already mobileenabled, 86 percent reported that their frontline staff are now better able to meet customer expectations. To learn more about how employers are going mobile, see to learn more about how employers are going mobile, see discover.inkling.com/registration-ebook-vb-survey.html for the complete survey.
SOCi Launches Enhanced Solution for Social Content Boosting at Scale New Boost Plus offering provides Multi-Location Brands a solution to regain lost organic reach and engagement from localized social content Today, over 70% of brand engagement on social is happening on a franchise’s local pages, according to a recent joint report from SOCi and the Local Search Association (LSA). This requires marketers to spend a great deal of time and effort on creating local content for these pages. However, after Facebook’s algorithm change in early 2018, organic reach of these social posts have sharply declined - in some cases by as much as 20 times.
To remedy this, SOCi, the leader in social media and reputation management for multi-location brands has launched SOCi Boost Plus, the only social boosting solution that can boost multiple social posts across multiple pages at the same time at both the location and group level. While content boosting isn’t new, existing solutions did not provide an efficient or effective way to boost posts at mass scale so SOCi created a solution to address the unique social and digital needs of multi-
location brands. Boost Plus was built with enhanced features and functionalities to save marketers time and effort when boosting hundreds of posts across hundreds or thousands of individual pages while enhancing marketers ability to make strategic decisions as an organization and by individual locations. Currently available on desktop (with general availability within the mobile app expected in Q2), Boost Plus also provides tools to analyze and compare campaigns across one or multiple accounts, simplifying reporting. For more information, visit www.meetsoci.com.
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Location3 Named Tint World® Names Agency of Record for 2018 Franchisee of the Self Esteem Brands Year
Expansion of current partnership between Franchise Marketing Agency and Global Health & Fitness Franchisor to focus on centralizing strategy and supporting franchisee revenue growth Location3, the leading franchise marketing agency in the United States, announced today that it has been named the agency of record for Self Esteem Brands, a pioneer in the Health & Fitness category with more than 4,000 global franchise locations encompassing three established brands: Anytime Fitness, Waxing The City and Basecamp Fitness. While the two organizations have partnered on franchise marketing initiatives since February 2016, today’s announcement highlights the centralization of marketing strategy under Location3 management including all advertising and media buying “As we continue to advance our vision of improving the selfesteem of the world, Self Esteem Brands signifies the ultimate opportunity for any person to improve their health and well-being at any time,” said Kristen Pechacek, Digital Marketing Director & Certified Franchise Executive at Self Esteem Brands. “In solidifying our partnership with Location3 and further integrating with their innovative franchise marketing platform, LOCALACT, we are confident that our brands and franchisees are in a strong position to gain market share and grow our customer base in 2019 and beyond.”
Tint World® Opens New Location in Eastern North Carolina Local entrepreneur and his family return home after 12 years to open National Automotive Styling Centers™ franchise in Jacksonville Tint World® Automotive Styling Centers™, a leading auto accessory and window tinting franchise, has opened a new store in Jacksonville, North Carolina, owned and operated by local entrepreneur David “Kit” Pelletier. Pelletier, a native of Eastern North Carolina, is returning to the area with his family after 12 years in New Jersey, where he worked in the transportation industry. “We really wanted to come back home,” Pelletier said. “My family and I looked at all the franchise opportunities that were available and really liked what Tint World® offered. They approach the business like a family, and the support they offer franchisees is the best in the industry. On top of that, they’re offering amazing products and services for the whole family, whether that’s safety enhancements, aesthetic upgrades, protection or audio-visual features.” Pelletier’s preparation for the store opening was interrupted by Hurricane Florence in September. After the storm, Pelletier encouraged the contractor who was building out his store to instead help repair local homes damaged by the storm.
A core aspect of the partnership will focus on directly supporting Self Esteem Brands franchisees as they seek to effectively market their locations online and grow in-store revenue, while leveraging the proprietary software built by Location3’s in-house engineering team, LOCALACT.
Tint World® of Jacksonville provides a full range of automotive styling and safety services including automotive tint, automotive paint protection film, mobile electronics, advanced driverassistance systems and car stereo upgrades, and residential and commercial window film. Many of the products for automobiles are also available for boats and other marine vehicles.
Learn more at www.location3.com/franchise-digital-marketing and www.sebrands.com.
To find out more, please visit www.tintworld.com and tintworldfranchise.com.
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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
Business Services Franchising feature As the saying should go, behind every great business are a lot of business services. A business services is a company that provides a specific service to other businesses. Whether it ‘s cleaning, tech support or even mail services, all types of businesses are reliant on outside factors. Business services is a strong contender in the franchising world. There are numerous different choices to consider, each with its
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own pros and cons dependending on your own personal needs. For example, one business service might only function after regular work hours, while another might require more involvement from a franchisee than others. Some business service franchises completely run themselves providing a great work life balance and others have are mobile franchise that have low start-up fees. A clear understanding of what one would expect and want from a business would be best considered before looking into any investments.
Tech services A lot of businesses rely on others to provide technology services. Though some small businesses will likely only need an internet service provider, as well as a few computers, what happens when that computer ceases to function? Or when you can’t access your email? Or your cash register is down? Whether we like it or not, there are a lot of technologies attached to everyday business functions. Cash registers, debit machines, light sensors, alarms, thermostats – a lot of gadgets may be dependent on a particular
“Cash registers, debit machines, light sensors, alarms, thermostats – a lot of gadgets may be dependent on a particular type of technology that will need servicing.”
Repair Services
“Dependending on what exactly one is expecting from a business experience, a business service can provide a lot of the points on an investor’s checklist.” type of technology that will need servicing. Nothing is as simple as calling a repairman anymore. If you can make something digital, it will be. Companies now use iPads and iPods for a variety of functions but may not have the manpower to service any of these gadgets when they falter. As the use of technology increases and we become more and more dependent on all its abilities, the services needed for such devices will inevitably increase.. There is no need for tech experience, but expertise in the field would be of benefit. Though there are no expectations from franchisees, it’s a great business option for those interested in the IT field.
The repair field reaches across many different areas: plumbing, electricity, and even general handyman fixes. When running a business, there are a lot of services that need tending or even updating. Businesses are dependent on those experienced in the trades to help them keep their buildings up and running. There are a lot of franchise opportunities specializing in such fields. For those with a background in trades, the franchise option is much less riskier. It usually comes with a list of loyal clients and provides expertise, support and marketing. Take a surveillance of the territory and see what the competition is and how much a particular service trade is needed within the area before investing. Though all businesses may need trade support, it doesn’t necessarily mean the consumers are looking for a new opportunity. When it comes to repair services, a lot of business owners have “a guy” who they trust and who is well known within the community. Do some digging to see what the atmosphere feels like and what the realities of competition are in your area.
Some franchises specializes in different trades and cover a variety of services to many businesses. This type of franchise may have a higher profit but could take more work and have more of an expectation from the franchisee.
Coffee and Food Services Nowadays a lot of companies order in food to their establishment for a variety of reasons and under a lot of different circumstances. Some larger establishments, like hospitals or residences rely on food services to provide their cafeteria with all the food they need. Some food service franchises have really big clients that keep them constantly busy, like government cafeterias or children’s schools. Look at a franchises’ list of clients and investigate how many contracts they hold within your community. Some businesses request restocking services from different mobile franchises. There are offices that have coffee machines that need constant refilling and depend on a franchise to show up and fill the shelves with their java needs, and a lot of companies have water coolers and set up contracts with a franchise to have their
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“As the use of technology increases and we become more and more dependent on all its abilities, the services needed for such devices will inevitably increase.” water delivered monthly. There are also vending machines in the lobby of many companies and businesses that need to be refilled. The majority of these franchises are mobile businesses which have low start up fees. Employees do not necessarily have an office or tangible location, but have a mobile office that delivers food and services to other running businesses.
“With the internet, online shopping has been a big part of a lot retail venues, increasing the demands on the shipping industry.”
Shipping and Delivery Services Every businesses needs goods delivered to them, and also need to ship things out. Some companies have products they need to distribute or essential supplies they need shipped in. As easy as it might seem to pick up products, a lot of entrepreneurs don’t have time or may have found a cheaper bulk option that they can have ordered in. Certain companies may rely heavily on their delivery and shipping partners to gain profit. Sending product out may be their main source of service themselves, so their partnership with a delivery service is very important. With the internet, online shopping has been a big part of a lot retail venues, increasing the demands on the shipping industry. From a franchising perspective there are a lot of heavy competitors in this field. Big name companies have a stronghold on the mail service; it would be wise to look directly at the competing services and how it would affect your choices. One could
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also look at opportunities within the big name shipping companies. If you want a genuine understanding of how much a business relies on others to function, take a step into your favourite restaurant or store. There are so many hands needed to keep a business running, and you could be an integral part of that process. While a lot of businesses are reliant on others to keep them going, a business services franchises would mainly run on its own with the support of a franchisor. Dependending on what exactly one is expecting from a business experience, a business service can provide a lot of the points on an investor’s checklist. There are
enough opportunities that one could step into easily, with low risk and easy success. A business service franchise tend to come with a well groomed reputation, as well as a list of clients – it is a recipe for success without too much work or effort on the franchisee’s end: all you have to do is figure out which one suits you best. 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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B US I N ESS F I N A N C E D E P OT
“As COO, I cover a few areas of the business,” Marisol says, “as well as my duties as Chief Operating Officer, I also assist and consult franchisors and individual franchisees with all of their finance options.”
BUSINESS FINANCE DEPOT THE FRANCHISE FINANCE EXPERTS
Business Finance Depot offers a wholistic, full focus service to all their clients, assisting and advising on every stage of the financing process. They help filter through the many options and set their clients on the right path, assist in completing all applications and facilitation of all necessary paperwork and help plan financial projections. Assisting in creating a template, planning and recording financial projections is certainly a massive value adding service for franchisees who may not be able to receive this advice from their franchisor. Business Finance Depot has the experience and expertise offer expert advice on these important processes.
Superior Product Offering
Business Finance Depot is dedicated to assisting start-up franchise systems and established franchise networks and their new franchisees to secure financing. They offer a ‘one-stop-shop’ service, utilizing 2 complementary products; SBA7a loans and equipment leases. Franchising USA Magazine sat down with company Chief Operating Officer (COO), Marisol Cruz, to chat about the many successes Business Finance Depot achieved in 2018, and the tremendous growth expected throughout 2019.
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Business Finance Depot’s products are particularly strong in serving businesses that require expensive equipment to run their business, which lends itself well to equipment leasing. Good examples are embroidery equipment, sign making equipment and fitness equipment. Also, if a vehicle is required to manage the business, the team at Business Finance Depot can arrange for the purchase at dealer’s cost and financing along with any tools and equipment needed to be in the vehicle to operate the business. Good examples are the tools needed to do carpentry, plumbing and pool testing work at a job site.
Expert Finance Advice For franchisors who are looking to give their franchisees the best possible chance at success - or start-up franchise systems seeking to hit the ground running with effective support and advice behind them - game changing financing like that offered by Business Finance Depot is a welcome addition to their finance options. As Marisol Cruz explains, Business Finance Depot has spent years establishing and developing partnerships with franchisors and franchise organisations, making them reliable industry leaders when it comes to consulting on franchise finance and securing loans.
The company can also provide up to $150,000 in working capital to home based & retail locations needed to operate the business starting from day one of operations. The SBA Express loan is
“Since starting out financing fitness gyms over a decade ago, Business Finance Depot has expanded its services to franchises and currently works with United Franchise Group’s numerous stable of brands, as well as many others.” perfect for start-ups because the repayment period is 10 years at low interest rates, and there is no prepayment penalty. Business Finance Depot also packages larger SBA7a loans up to $5,000,000 with 3 national SBA lenders if your business requires more capital than an equipment lease and an SBA Express loan can offer. They are able to offer a variety of alternate lending sources for cash advances, micro loans and unsecured financing lines.
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The Florida based company is able to service businesses right across the United States, and is rewriting how franchisors finance their locations through a combination of these equipment and SBA7a government T H E loans. MAGAZINE
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Marisol Cruz
Fconferences O R F throughout R A N Cthe Hyear I S and E EisSset
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to be the 2019 national sponsor of all 5 MFV Expos. “We attend a lot of the trade shows and conferences, including the IFE and IFA conventions,” Marisol Cruz says. The ability to meet with and chat to the dedicated team at Business Finance Depot at these industry events is another great advantage for franchisors and franchisees.
BUSINESS FINANCE DEPOT
Since starting out financing fitness gyms over a decade ago, Business Finance Depot has expanded its services to franchises and currently works with United Franchise Group’s numerous stable of brands, as well as many others. 2018 saw Business Finance Depot establish and develop partnerships with many other lenders and franchise organisations, including Francorp, which has set them up for a very successful year ahead.
Tremendous Success to Come
2019 is poised to be a fantastic year for THE FRANCHISE Business Finance Depot and their many FINANCE EXPERTS valued clients. The partnerships and
“We currently have $32 million in SPECIAL finance approved, between the SBA7a and equipment loans - the highest to date,” Marisol explains. This figure is only set to rise throughout 2019 with the tremendous growth that Business Finance Depot projects over the coming months.
initiatives instigated in 2018 have allowed the company to put their best foot forward right from the start of 2019.
BUSINESS SERVICES FRANCHISING
Meet the FEATURE Team Face to Face “We currently have $32 million in finance approved, between the SBA7a and equipment loans - the highest to date.” - Marisol Cruz
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While the team at Business Finance Depot work every day to provide their clients with the best financial services and consultation in the industry from their head office in Florida, they also attend numerous trade shows and industries
INNOVATE OR PERISH
Business Finance Depot are committed to assisting business get the financing they need, and their dedication, expertise and wide rage of services certainly put them ahead of the competition. The company has launched an online webinar and video series dedicated to teaching perspective franchisees how to prepare to evaluate and finance a franchise. To find out more, visit businessfinancedepot.com or contact Marisol directly via email at marisol@businessfinancedepot.com.
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Expert Advice: Josh Allen, Director of Marketing, Location3
Voice Search Is Changing the Digital Marketing Landscape: Here’s What You Need To Know
As we head toward one of the most prominent advertising events of the annual calendar year – the Super Bowl – you can likely expect to see a wealth of marketing and advertising focused on the growing multitude of digital assistants like Google Home, Facebook Portal, Amazon Alexa and others now available to consumers. With a variety of devices and smart speaker options on the market, eMarketer expects usage to increase by 15%, with nearly 75 million people owning and using the devices in the U.S. alone. This explosive growth has particular implications for franchise brands and business owners, so it’s important to determine how you can leverage voice search now as well as better understand what may lie ahead for this evolving marketing channel.
How Are Consumers Actually Using These Devices? The aforementioned eMarketer study from December 2018 notes that the three voice-activated actions taken most often
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by users on smart speakers are listening to music (79.8%), searching for information (73%) and shopping online (37.1%). While companies like Apple are building their devices around the music experience, the latter two statistics have companies like Google and Amazon innovating and competing for consumer attention. For example, when conducting a voice search on a Google Home or while using the Google Digital Assistant on one of the company’s pixel phones, it should come as no surprise that the default search engine returning results is Google Chrome. If an Amazon Alexa user is looking for a specific product that can be purchased on Amazon it is likely that the user will receive an Amazon product result, but it’s important to note that Alexa actually uses Bing as its default search engine for general user questions and queries like “where can I find the best gym in Atlanta”.
How Can Local Businesses Connect With User Voice Searches? Because many franchises have a brickand-mortar presence, it’s critical that their location data and their local website presence are optimized to properly return key business information that is relevant to a user’s voice-activated search. The back end of your website or local business page should include the proper structured data (also known as “local schema”) related to your business name, address and phone number. This structured markup simply allows search engine crawlers to better understand your actual location
Josh Allen
and presents a more user-friendly display of results to the consumer. An extension of this strategy should also incorporate optimized business profiles on places like Google My Business (for Google Home searches) and Bing Places (for Amazon Alexa searches) with the same information and local content. If your goal as a franchise owner is to drive customers to your business location, taking each of these important steps can help a consumer find your business with their initial search and then get additional info like hours of operation, directions, or even call your business with their next voice command.
Ecommerce and Product Sales with Voice Search If you’re a franchise business that sells products (in-store or online) and have the ability to ship to the consumer, tapping into Google Express and setting up key “Shopping Actions” can be a great way to increase sales with voice search - and is
often a better fit in general for franchises than Amazon. Google Express can actually shorten the purchase process from search to checkout when implemented properly, and if users link their Google accounts properly then the devices themselves can recognize purchasing patterns and increase repeat purchases of products. In order to execute this tactic, your business will be required to enable product feeds within the Google Merchant Center and provide additional information like shipping details and sales tax figures when setting up your Storefront. While Google Express may only be a fit for specific franchise businesses, it certainly increases the opportunity to sell products easily and efficiently via voice search, when applicable.
In Summary Voice search, while exploding in user adoption, is still very much evolving as a marketing channel. Future opportunities will likely include integration of
“This explosive growth has particular implications for franchise brands and business owners, so it’s important to determine how you can leverage voice search now as well as better understand what may lie ahead for this evolving marketing channel.� traditional paid search and paid social marketing opportunities, as industry giants like Google and Facebook improve their advertising interfaces to provide better, more specific advertising results for voice-activated user searches. Ensuring your business information can be easily recognized by digital assistants with the proper technical updates, and enabling relevant product feeds where available, can give your franchise a boost in customer volume in the short term and keep your business one step ahead of the competition when it comes to capitalizing on the long term growth that is expected of voice search in the future.
developing and managing Location3
As Senior Director of Marketing, Josh Allen is responsible for planning,
www.location3.com/franchise-digital-
and LOCALACT brand strategies, with a focus on establishing new business partnerships among franchise systems and multi-location brands. He also works with Location3 client partners to establish key initiatives for increased franchise engagement and growth. He is an active member of the International Franchise Association and has previously been featured by the American Marketing Association, Franchise Update Media, MediaPost and more discussing franchise digital marketing strategy. marketing
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Expert Advice: Susan Grueneberg, Attorney and Member, Cozen O’Connor
Tips for a more
Successful Franchise Renewal Season keep its registration in a state active in case there is a transfer of a franchise, or a franchisee is coming up to the end of its term. The states in which some type of filing is necessary are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin.
As spring approaches, most people look forward to relief from the long winter’s cold and the advent of new life. This annual renewal stands in stark contrast to the specter of renewal season in franchising. Franchising USA
Each spring, franchisors with a December 31st fiscal year end face the sometimes Herculean task of updating their disclosure documents to reflect developments during the year just ended. Since most franchisors have a December 31st fiscal year end, and many are interested in expanding in states that regulate the offer and sale of franchises, this also means that they have to file renewal registration applications with those states. Even if expansion is not on the horizon, a franchisor may want to
With so many companies planning to make these filings, the state agencies charged with regulating the offer and sale of franchises can be overwhelmed with applications. By necessity, this work overload causes delays in responses and frustration for all parties involved. Of course, franchisors do not want delay in sales activities. But this is not just a franchisor-related problem. Franchisees also experience frustration if they can’t proceed with the sale process. Financing can fall through. Locations can be lost. Partners can lose interest. Is there any way to make this process smoother and more efficient? Over the years, we have developed various tips to increase the odds that annual updates and renewals will be less disruptive.
Start Early to File Early Most franchisors file their renewal registration application during the last half of March. This creates the logjam in states that review these applications that you want to avoid. Don’t get caught in
“Keeping current with developments in legal and accounting issues will save time in preparing annual updates.”
Designate a Compliance Officer
traffic! Begin your update process as soon as possible after year end. Better yet, start getting organized in December.
Develop Information Gathering Systems Don’t wait until you are faced with hard filing deadlines to figure out how to assemble everything necessary to update your Franchise Disclosure Document. Set up systems to gather and sort information such as lists of franchisees, business addresses and telephone numbers arranged alphabetically by state and, within a state, alphabetically by city name. Delegate responsibility for compiling specific information to various individuals in the company who can access it most readily.
Put Your Auditor on Deadline If you can schedule your audit earlier in the year, your financial statements will likely issue earlier. Negotiate a schedule in December and follow up to make sure deadlines are being met. Delay in the issuance of audited financial statements is often the most important factor in the timely preparation of annual updates and filing renewal registration applications.
Legal and Accounting Updates Keeping current with developments in legal and accounting issues will save time in preparing annual updates. For example, FASB accounting standards are changing to adjust when initial franchise fees are recognized beginning in 2018 for public companies and 2019 for privately-owned
companies. This will be reflected in audits issued in 2019 for public companies and 2020 for privately-owned companies. If you haven’t already prepared for this, you should start.
Know What Your Regulators Want States vary quite a bit on how they want documents filed. Some only permit online filing; others permit it but document sizes can cause problems. Don’t wait to upload documents until 11 p.m. on the day they are due. If you run into problems, there will not be anyone at the state to help you. Other states only allow paper filing; some prefer paper and CD-roms. Check the website of states in which you are filing – often there are tips on how to file.
At some point early in every franchisor’s business life, it is advisable to task a member of the organization with the responsibility of coordinating not only the annual update and renewal process, but also overall compliance with franchise laws. Setting up a compliance system lessens the likelihood of an inadvertent violation of the laws or mistakes in the registration process. These simple steps will not ensure a peaceful springtime renewal process without delays or sales down time, but they will increase your chances! Susan Grueneberg has been working with franchisors in industries ranging from food and beverage to transportation, fitness, senior care, health care, pet services, real estate, children’s activities, automotive care and construction for the past 30 years. She assists franchisors in setting up franchise systems and expanding them nationally and internationally. To learn more, you can reach Susan at 213-8927996 or sgrueneberg@cozen.com. www.cozen.com/people/bios/gruenebergsusan
Be Alert to Changes All Year Long Keep a running electronic file on your desktop to store thoughts you have throughout the year to improve your franchise system and your Franchise Agreement. Encourage your reports to do the same. And make sure you are working with a lawyer who is tracking legal developments in the field so that it is easy and economical to go over any changes that can improve your contracts. Case in point – many Franchise Agreements still have anti-poaching provisions despite the fact that franchise systems have been targeted by state attorneys general for this practice.
Susan Grueneberg
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Expert Advice: Jeff Oddo, President, City Wide Maintenance
Four EyeOpening Ways I Learned (and Keep Learning) To Run My Franchise
I’ve experienced many milestones in my life. One of the most significant occurred in 1999 when I took over as president of City Wide Maintenance— my family’s long-standing business since 1961. It was an exciting time for me, but also a time I discovered what I hadn’t learned yet. While I’ve had great ideas to freshen up and propel my family’s business forward, it’s not possible for me to take credit for
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much of its success. This brings me to an important point: We need each other to make big things happen. Below are four ways I learned (and am still learning) to run my franchise business.
I learned everything about business from my father and brothers Before I took over City Wide in 1999, my father had been running it as a traditional janitorial company. Back when my father started the business, this model worked perfectly. After all, he started it from scratch after learning about all of the challenges associate with keeping his family’s grocery stores clean. Growing up, my brothers and I were
immersed in my father’s business talk at the kitchen table. By the time I stepped in as president I had learned everything from my father—and my brothers—who had also gone on to run one of our family businesses. But a point came when I had learned everything I could from them. Now what? This is when I realized it was time for me to build new ideas and gain new perspectives that would challenge my assumptions about how the industry worked out there. The point is, I was blessed to have a foundation to build on, but it’s important to remember we must continue to challenge our assumptions—or what we’ve grown up knowing—in order to keep building something great.
So, that being said, who is challenging you these days?
I had to become a reader to be a leader Many franchise owners, like me, are likely subscribed to dozens of weekly industry newsletters. But subscribing to them, reading them, and acting on them are three different things. Just like you, I understand we only have so many hours in a day we can dedicate to learning. But it should be a priority, because if you are not evolving as fast as your competition, you are falling behind. Time needs to be set aside on your calendar for this activity. Remember, all business owners, including franchisees, need to surround themselves with people they can learn from. And if you can’t commit yourself to reading, try other outlets like online classes, podcasts, or even joining organizations such as Vistage, Entrepreneurs’ Organization, Young Presidents’ Organization, or Acumen in your city. Joining Vistage was a game-changer for me professionally. I was able to surround myself with noncompetitive peers who I could wrestle ideas with and help fight my battles. It is very difficult to be on an island and try to run a business all by yourself. What podcast or newsletter have you discovered that’s helping you grow?
Go to lunch with someone every day There will be days you want to step out of the office for lunch by yourself—or skip lunch because there’s never a good time to leave. However, I want to stress the need to take lunch. Just don’t go alone. Whether it’s a client, an employee, or a long-time friend I haven’t seen in a while, I try to go out and share lunch with someone every day. Why? It’s a perfect time to learn things from others. I’m always amazed with the conversations I have during that time of the day, and how it can help me come back to the office with a renewed mind, new inspiration, or new ideas I can’t wait to scribble down at my desk. Who will you put on your list to have lunch with this month?
There is never a perfect time to start learning new things A long time ago, I realized that waiting to start something new until all of your proverbial ducks are in a row is not a good idea. If you wait until then, chances are it will never happen. Don’t wait. It’s like having kids; there is rarely a perfect time so take action now. The same goes for finding a mentor who can show you the ropes. To be honest, most franchisees don’t know anything about our industry when joining—and they’re looking for help. When I started thinking about how to franchise our company in 2001, I also took a steep learning curve— and I needed help to understand what the franchise world in the building and maintenance industry was all about.
you things you didn’t know you needed until you met them. Remember, the most successful people don’t wait for things to happen to them. Identify your needs and it’ll make spotting these small moments of guidance so much easier. So, what is the biggest challenge you are facing and what are you going to do about it? Jeff Oddo is the president of City Wide Maintenance, a sales management company in the building maintenance industry with more than 50 franchise locations across the United States. www.citywidefranchise.com
What did I learn? Waiting for the perfect person or mentor to show up and teach me everything was a waste of time. Fortunately, I had a revolving door of people coming into different parts of my life, giving valuable advice. To be honest, I’m not sure they knew how much of an impression they left on me during those encounters. My point is, keep your eyes open to everything people are offering you right there and then. The timing may feel inconvenient, but it’s in the unexpected places I’ve met people who have helped me the most. Those people might teach
Jeff Oddo
Franchising USA
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Busi ness Serv ices Franch isi ng Feat ure
Expert Advice: Mike Brugger, President, Fully Promoted
The Role of
Promotional Products
as a Marketing Strategy Promotional items are a huge part of any successful marketing strategy. Both large and small companies can benefit by using these products, as they provide a means of targeting an audience. The goal is to enhance awareness of a brand and promote the advantages of loyalty to that brand. The end game is to
impress new customers, retain old ones, keep and motivate employees along with sending positive messages about the brand. The first step is to identify the product. The saying “you only get one chance to make a good impression,” is true socially, but it’s also true for companies that provide promotional products. Businesses differ, so make appropriate suggestions. For example, a landscape company requires different items than a healthcare company or a restaurant. The key is accessing promotional products that fit all vertical markets. Products must match the needs, or that “first impression” may be the last impression.
Other critical factors in product selection include identifying how long a product will be used, the type of event at which it will be used, the budget, and the target audience. Is the product a basic handout or giveaway, or is it something you want employees and/or clients to hold onto? Don’t forget to consider the climate and season when suggesting products. Those questions must be answered before the product selection process takes place. Also, the popularity of a specific item varies depending on the region and target audience. In my experience, the most popular promotional products are quality shirts and writing instruments.
Different Sizes, Different Needs Large corporations are intent on retaining employee loyalty, and awards and incentive products are usually very effective. But large companies want more than just an end-user marketing strategy. They want to market their employees as representatives of their brand, and that
“The key is accessing promotional products that fit all vertical markets. Products must match the needs, or that “first impression” may be the last impression.” Franchising USA
“Social media plays such a huge role in messaging, so promotional product companies should use this medium to its fullest.”
opens a world of product possibilities. Smaller companies normally have tighter budgets, so it’s important for them to be more creative with their marketing strategy. The flexibility to cater to both large and small businesses is vital for the success of companies that sell promotional products. From experience, networking and trade shows are a great way for smaller companies to thrive. Pens, tote bags, mints are popular handouts and very cost-effective.
The Cycle of Need It’s also important to evaluate a product’s life cycle. For example, a restaurant may order 100 shirts regularly, but with staff turnover, they may need only 50 in certain months. Some customers may do trade shows quarterly, while others may hold an annual event and place one large order. Keep track of what I call their “cycle of need”. Awareness of that intangible makes an impression on your client because they know you will quickly react to their needs. Pay attention to a brand’s most requested products and the time of year they will need it. Creating awareness and being in tune to your clients’ needs provides the most impact.
The Next Level Marketing is vital in taking a company to the next level. Promotional products and wearable items are great, but the ability to get leads from source partners and online advertising is also important. Businesses should take advantage of a full marketing suite - from promotional items to print advertising to digital media. Lead-building programs can attract new business, whereas sending promotional products to top clients for special occasions, or during the holidays, benefits customer retention. Employing marketing techniques is what
I call a “360 solution” - it helps grow business. Social media plays such a huge role in messaging, so promotional product companies should use this medium to its fullest. Develop an active online campaign to remind customers of different events and what you can offer for those events. Announcing an event on social media 45 to 90 days out enables timely ordering and delivery of products that support the event. Communicate with businesses and retail clients in advance - it’s a unique opportunity to secure promotional products that enhance morale, help employee retention, and raise awareness of your brand.
2000, he opened and managed the first EmbroidMe store in West Palm Beach, a company later re-branded as Fully Promoted. Over the years, Brugger managed marketing, technology, and training departments, and prior to being named president of Fully Promoted, served as the Vice President of Operations Emerging Brands for United Franchise Group. fullypromotedfranchise.com
At Fully Promoted, we have more than one million different products, so we narrow down to about four or five relevant items that provide the most impact. Know your customers’ needs, react to their needs, and provide products that make an impression. That is the foundation of success. Mike Brugger is president of Fully Promoted, a brand of United Franchise Group in West Palm Beach, Florida. He joined UFG in 1994 and successfully supervised multiple operations. In
Mike Brugger
Franchising USA
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