Canadian Franchise Magazine by CGB Publishing

Canadian Franchise Magazine

issue 4#1 - 2019

w w w. c a n a d i a n f r a n c h i s e m a g a z i n e . c o m

Part-time business FULL-TIME INCOME with

The Seasons The Impor ta nce of

Selecting the Right Location

for your Fr a n chis e

Look ing to m a k e your fr a nchis e profita ble ?

It’s time to talk about cash flow LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

Page 1

TOP LAWYERS’ ADVICE

WORK SMART

NOT

HARD!

IFG 50/50 - A Different Franchise Approach!

Staff Premises Long hours Paper Inventory

WE BUY INVOICES TO ACCELERATE OUR CLIENTSâ&#x20AC;&#x2122; CASHFLOW! WE DO NOT LEND MONEY!

GET A FREE eBOOK www.Interfacefinancial.com/franchise Page 2

AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED

For more information contact David Banfield, President E: ifg@interfacefinancial.com

CANADIAN FRANCHISING VOLUME 4, ISSUE 1 - 2019 president: Colin Bradbury. colin@cgbpublishing.com

publisher: Vikki Bradbury. vikki@cgbpublishing.com

Editorial Department: editor@cgbpublishing.com

Assistant Editor: Diana Cikes. editor@cgbpublishing.com

Advertising advertising@cgbpublishing.com

PRODUCTION: production@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: The Seasons Art Class

CGB PUBLISHING #107 - 1001 Cloverdale Avenue, Victoria, B.C V8X 4C9 CANADA www.canadianfranchisemagazine.com Proud member of the IFA:

SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812

from the

Publisher Welcome to the latest issue of Canadian Franchise Magazine. We have compiled plenty of informative news, stories and Expert Advice articles to help you in your journey to entrepreneurship. Starting with our Cover Story on The Seasons Art Class which has been a proven franchise in the UK for 10 years, where there are now over 125 branches teaching over 4800 students every week, The Seasons has been growing throughout Europe, and is now coming to Canada. But what is it? Turn to page 10 to learn more about this exciting Franchise. From our experts we have, Interface Financial Group which discusses Research – Research – Research. David Banfield advises that just before you make that final ‘leap of faith’ take a second look and make sure that you have really examined all the key aspects of not only owning a franchise but becoming a business owner and possibly an employer. Looking to make your franchise profitable? It’s time to talk about cash flow with expert advice from Joseph Pisani at BMO. Lori Karpman discusses The Importance of selecting the right location, a very important decision. This issue also has a great article on Women in Franchising, Women are a fast-growing segment in franchising. Between 2011 and 2017, female franchise ownership jumped by 83 percent. In honor of Women’s History Month, four female franchisees and Business Development Agents (BDA) from Subway®, share their experience as female leaders. Don’t forget to take a moment to shop around our A-Z Directory at the back of the magazine. And be sure to stay in touch and send us your comments. Happy reading! Vikki Bradbury Publisher

www.franchise.org The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

Page 3

contents 10

Canadian Franc

hise Magazine

ISS UE 4#1 - 201 9

w w w. c a n a

dianfranc

hisemaga

zine.com

PA RT-T IM E BU SI NE SS FU LL-T IM E IN CO ME W ITH

THE SEASON S

TH E IM PO RTA

E OF SELECTING TH E RIGHT LOCAT ION FO R NC

YO UR FR A NC HI

LO OK IN G TO M A K E FR A NC HI SE PR OF YO UR ITA BL E ?

IT’S TIME TO ABOUT CASH TALK FLOW

LAT EST NEW S

FIN ANC IAL

ADV ICE FRO M THE BAN KS

TOP LAW YER Page 1 S’ ADV ICE

On the Cover 10 Cover Story:

The Seasons Art Class – Part-time Business, Full-time Income

12 Looking to Make Your

Franchise Profitable

16 The importance of selecting

the right location

in every issue 6 What’s New!

Announcements from the industry

37 A-Z Franchise and

Services Directory

focus

20 O2E Brands:

The Rise of Mobile Franchising

have your say 28 4 Reasons to Invest in an

Franchising USA

Optical Franchise in Canada

Josh Robinson Pearle Vision

Canadian Franchise Magazine

may-july 2019 women in franchsing 32 Subway Celebrates Female Franchisees

and Business Development Agents

FRANCHISOR INDUSTRY ADVICE 34 Doing Business in Quebec

Lori Karpman Karpman & Company

Expert Advice

12 Looking to Make Your Franchise Profitable,

It’s Time to Talk Cashflow

Joseph Pisani BMO

14 Research – Research- Research

David Banfield The Interface Financial Group

16 The Importance of Selecting the Right Franchise

Location for Your Franchise

Lori Karpman Karpman & Company

22 Franchise Fees Initial and Ongoing

Wayne Maillet Franchise Specialists

24 Franchise Mergers and Acquisitions

Edward (Ned) Levitt Dickinson Wright LLP

30 4 Ways to Boost Local SEO for Franchisee Websites

Lora Kellogg Curious Jane

Page 5

ca nadia n f ra nchise maga zine

what’s new! Stagecoach celebrate success in Canada with national award win and expansion Stagecoach Performing Arts have been recognised by the Canadian Franchise Association (CFA) for their commitment to their Canadian franchisees. The internationallyrecognised children’s performing arts franchise were proud recipients of the 2019 Franchisees’ Choice Designation – an award given to franchisors who put the satisfaction of their franchise network at the heart of the business. The Franchisees’ Choice Designation, awarded at the CFA ‘Your 2019’ convention – the largest franchise conference in Canada – is given to franchisors who perform well in an annual franchisee satisfaction survey. In recent months, Stagecoach franchisees across Canada were invited to rate their franchisor, its products, services and infrastructure. The results of the survey provide a benchmark for the franchisor, as they’re able to understand the feeling of the network and evaluate how processes can be improved. Stagecoach received incredibly positive feedback from a high percentage of the network, establishing them as one of the best franchisors in Canada. “It was an honour to have been recognised in a room full of many other respected franchisors. At Stagecoach, we prioritise the satisfaction of our franchisees and this recognition comes as a real testament to this dedication. I’m so pleased to celebrate this with our team, both in Canada and internationally. We’ve come such a long way in the years we’ve been operating in Canada and I’m looking forward to seeing what the future holds for the brand and our rapidlygrowing network of franchisees.”

Andrew Walters, Director of International Business Development at Stagecoach, collected the award on behalf of the team.

Cadence Allen Crawley, franchisee and Principal at Stagecoach Toronto East, is a true example of Stagecoach’s growing success in Canada. With the imminent launch of a new territory in Hamilton, Ontario, Cadence plans to increase awareness of the Stagecoach brand, by offering performing arts opportunities close to where she lives.

April 2012, with a handful of students attending a Saturday morning school,” explained Cadence. “Now, I welcome nearly 150 students to my Saturday schools and, last fall, I launched a Thursday school in nearby Scarborough – the first weekday school in Canada. Owning a Stagecoach franchise has brought me so much satisfaction, both in terms of my career aspirations and in the way I’m able to support my young family financially. As a trained actress, it’s really important to continue doing something that’s creatively fulfilling which also provides opportunities for children living locally. It’s a win-win, really.

the operations of my original Toronto territory, so I can commit to developing my new territory in Hamilton,” continued Cadence. “I’m not sure how long she’ll be with me for though, as she’s already been asking about buying a Stagecoach franchise for herself! I’ve already had a lot of interest from parents in the area, so I’m positive my business will be just as successful in Hamilton as it is in Toronto and Scarborough. I’m really proud to be affiliated with such a respected, wellknown performing arts opportunity for children and will do all that I can to support the continued growth of the brand in Canada.”

“I launched Stagecoach Toronto East in

“I’ve employed a manager to take over

www.stagecoachfranchise.com

Page 6

Canadian Franchise Magazine

Stratus Building Solutions announces new ownership for Master Franchise location in Calgary, Alberta After a fulfilling 28-year career as a nurse, entrepreneur Nancy Barton is eager for a new challenge. Barton has recently purchased the Stratus Master Franchise location in Calgary and taken on her new role as a Stratus Master Franchisee with enthusiasm. Stratus Building Solutions, the nation’s leading green commercial cleaning and janitorial services franchise, has announced the Master Franchise location in Calgary, Alberta is under new ownership. This is big news for the California-based company, because this international expansion fills the need for green cleaning janitorial services in Calgary. The need for high-quality cleaning services is at an all-time high as companies, schools, daycares, religious centers, gyms and others seek out healthier and cleaner work environments.

Barton believes Stratus Building Solutions’ revolutionary products, green cleaning techniques, and proven sales/customer service processes make the Unit Franchise opportunity an ideal fit for aspiring business owners seeking an affordable and scalable franchise business. Stratus Building Solutions, currently present in 47 U.S. and Canadian metropolitan locations, provides eco-friendly, customizable commercial cleaning and janitorial services to a wide range of clients including offices, medical facilities, warehouses, gyms, retail and more.

Sweet Jesus opens in dynamic location Sweet Jesus opens new store as part of the dynamic food hall concept at Square One Shopping Centre, Mississauga, Ont. I would like to personally congratulate our franchisees Larry, Sheelah & Paul, as well as the International Franchise Inc. team on this exciting achievement. From all of us at International Franchise Inc., we are truly delighted to bring Sweet Jesus to adoring fans in the community. Sweet Jesus features hand crafted; chef inspired; pimped out soft serve ice cream, with flavours such as Cookies Cookies Cookies & Cream, Bangin Brownie, Rocky Road Rage, Birthday Cake, Hella Hazelnut, Oh Hungry and Red Rapture, as well as rotating feature flavours, using seasonal fruits and ingredients. We also have pimped out pints and cakes for take away and available on multiple delivery service platforms. The Sweet Jesus brand has become a social media sensation with over 118,000 loyal Instagram followers. Please follow us at: https://www.instagram.com/ sweetjesus/?hl=en. The first Sweet Jesus unit opened in downtown Toronto in 2015 and since

its inception, has quickly become one of the fastest growing franchises in the industry. To date, we have awarded Sweet Jesus franchises throughout Canada, in the United States and Sweet Salvation franchises in Dubai, India and Bangladesh. In November of 2018, Sweet Jesus was acquired by Holy Sweet Inc., and affiliate of International Franchise Inc., the Franchisor for Internationally

recognized brands such as Yogen Früz (www.yogenfruz.com); Pinkberry (www. pinkberryworld.com); Swensen’s (www. swensens.com); Yeh! Yogurt (yehyogurt. com); and Yogurtys (www.yogurtys.com), with a combined total of 1,400 units in over 47 countries. This recent store opening reinforces our position as the worldwide market leader in the specialty frozen dessert segment.

Page 7

ca nadia n f ra nchise maga zine

what’s new!

BRITISH SWIM SCHOOL IS ON THE MOVE TO CANADA Water Safety and Survival School Debuts a New Location in Ottawa Ottawa, Canada– British Swim School, best known for its education of water safety as an essential survival skill amongst a fun and gentle environment, continues to push its international expansion with a new pool location in Ottawa, Canada. The pool has been open to the public as of March 2019, and was acknowledged through a grand opening celebration on April 20th at the Homewood Suites Ottawa Airport Hotel in Ottawa, Canada. Additionally, the Deputy Mayor of Ottawa, George Darouze, was in attendance for the ribbon cutting. This now-open addition will be run by first-time franchisee, Anita Mushitsi. Anita joined the British Swim School brand after serving for the government of Canada for the last 18 years where she was mainly managing communications for major policy announcements. Her grand opening festivities included family-friendly activities such as raffles with prizes, balloon twister, a temporary tattoo artist and more. Additionally, families who attended will receive 25 percent off their tuition for the first eight weeks of enrollment (membership fee still applies) and a British Swim School swim cap. “I knew I wanted to open my own British Swim School franchise because of their focus on water safety and survival

Page 8

skills,” said British Swim School franchisee, Anita Mushitsi. “It is an honor and a privilege to be able to bring to our Ottawa community, a concept that I know will help save lives.” British Swim School offers a two-step curriculum teaching children and adults of all ages, some as young as three months, water safety and survival skills, along with swimming skill development. While parental supervision is always the number one safety measure, research shows that participation in formal swim programs can reduce the risk of drowning by 88 percent among children who are most at risk for deaths caused by drowning. The British Swim School franchise concept operates a unique water safety program with teaching methods that serve as a trademark for the brand. The company offers lessons out of multiple national fitness chains and hotel pools year-round, based on the premise that children progress at different rates. Each child, regardless of age, is placed in their correct skill level and will have certain achievable objectives. British Swim School Ottawa is located at 3605 Paul Anka Drive, Ottawa, Canada. For more information about British Swim School in Ottawa, please visit www.britishswimschool.com/ottawa.

Don’t miss an issue

Canadian Franchise Magazine

Get the App cover stroy

T h e S e as o n s A r t C l as s

Canadian Franchise Magazine

• The Seasons can be operated in conjunction with other business work or family commitments. For some people, this could be a standalone business; for others, a perfect second income offering a substantial earnings boost for your family. The Seasons Art Class is a proven franchise in the UK for 10 years, where there are now over 125 branches teaching over 4800 students every week, The Seasons has been growing throughout Europe, and is now coming to Canada. But what is it?

Building relationships

PART-TIME BUSINESS FULL-TIME INCOME FANCY MANAGING A SUCCESSFUL BUSINESS FROM HOME? THE SEASONS COULD BE THE FRANCHISE FOR YOU This fantastic business is only ‘One day per week and manage your business from home and make a smart return on low initial investment – Upto $35,000 after expenses annual net profit (One day). These are the average incomes from UK operations. Even better, once you’re established, that could increase to $70,000 for two days a week. Only 40 customers every 3 months will generate this proﬁt • Huge demand for art classes in our market • Opportunity to reinvest in second franchise after a qualifying period

Page 10

‘The Seasons is a step-by-step art class, a place for students to discover themselves, learn techniques in a range of media and develop their skills in a sociable, relaxed setting,’ says Mike. ‘We create an uplifting environment and show people they are capable of achieving things they didn’t think possible. Our students are only with us for 3 hours per week, but very quickly decide that this is their “me time” and won’t let anything get in their way!’ Classes are run once a week at venues such as church and community halls, with each course lasting 14 weeks. ‘We have lots of students that return for a second or third course (averaging 50%), forming a habit and developing their skills each time. The curriculum changes every three months, so there’s always something new to learn.’ And the Seasons Art Class is as much about social time as the art for many students, with weekday classes appealing to men and women who aren’t going out to work — many retired, and others stay-at-home parents. ‘There’s a real community feel between the students, and our franchisees and tutors work hard to build relationships and connections with everyone, which is part of why they keep coming back.’

The best thing I’ve ever done Sarah Eames, who owns a Seasons franchise in England, describes the opportunity as, ‘Quite simply, the best thing I’ve ever done to get myself a worthwhile and proﬁtable lifestyle business. All the systems and processes have been thoroughly worked through.’

Canadian Franchise Magazine

ISSUE 4#1 - 2019

“‘The Seasons is an enjoyable, fun, prestige, profitable, part-time business, operating adult art classes that only take one day per week and will be loved by everyone in the community.”

Start small, with option to build big fast

can easily grow their business by buying a second or third franchise, running

The Seasons franchisees dedicate one day a week to be present and engaged in their class, with a few hours of business administration at home. They employ a qualiﬁed art tutor to run the class, and act as a classroom assistant themselves, so no art experience is necessary.

trebling the rewards.

w w w . c a n a d i a n f r a n c h i s e manother a g a z iday n e of . cclasses o m and doubling or

Initial franchise training covers the process for running classes, managing the business side of things, basic art upskilling and terminology, and the importance of marketing on a local basis.

‘The great thing about this business is that it is very straightforward with no overheads, and very limited inventory, so being a business owner can be very relaxed and simple, or it can be the starting point to build your empire!’

Change your life The Seasons has identiﬁed key areas with nice venues available throughout Canada.

‘We’re ready to appoint franchisees in PART-TIME BUSINESS all areas right now’ Mike says. Very low FULL-TIME INCOME WITH investment for an area franchise $39,995

‘We take care of national advertising and logistics such as ﬁnding the space and training the tutor so you can focus on being the backbone of the group,’ says Mike. ‘Your role is to support the students and tutor, be visible as the owner of the business, and deal with set-up, pack-down and refreshments to fuel the budding artists.

THE SEASONS

plus tax which ensures your exclusive area.

‘We’re looking for well-organised people who are big on interacting and connecting with others. We will provide the training and everything else you need

THE IMPORTA NCE OF don’t have to be an artist to succeed—you

SELECTING THE RIGHT LOCATION

Managed from home, excellent income potential We have proven proﬁt margins of 35,000 per year after expenses for one day per week based on just 40 students per course, and the limited time commitment means franchisees

yourself, just share the enthusiasm for being creative. ‘If this sounds like you, give me a call and see how a part-time business could change your life.’ The Seasons Art Class

FOR YOUR FR A Nwww.perfectparttimebusiness.com CHISE Contact Lori Karpman at 514-481-2722 or lori@lorikarpman.com

LOOK ING TO M A K E YOUR FR A NCHISE PROFITA BLE ?

Page 11

IT’S TIME TO TALK ABOUT CASH FLOW LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

Page 1

TOP LAWYERS’ ADVICE

www.canadianfranchisemagazine.com Franchising Page 9USA

cover stroy

T h e S e as o n s A r t Cl as s

Part-time business FULL-TIME INCOME Fancy managing a successful business from home? The Seasons could be the franchise for you This fantastic business is only ‘One day per week and manage your business from home and make a smart return on low initial investment – Upto $35,000 after expenses annual net profit (One day). These are the average incomes from UK operations. Even better, once you’re established, that could increase to $70,000 for two days a week. Only 40 customers every 3 months will generate this profit • Huge demand for art classes in our market • Opportunity to reinvest in second franchise after a qualifying period

Page 10

Canadian Franchise Magazine

Building relationships ‘The Seasons is a step-by-step art class, a place for students to discover themselves, learn techniques in a range of media and develop their skills in a sociable, relaxed setting,’ says Mike. ‘We create an uplifting environment and show people they are capable of achieving things they didn’t think possible. Our students are only with us for 3 hours per week, but very quickly decide that this is their “me time” and won’t let anything get in their way!’ Classes are run once a week at venues such as church and community halls, with each course lasting 14 weeks. ‘We have lots of students that return for a second or third course (averaging 50%), forming a habit and developing their skills each time. The curriculum changes every three months, so there’s always something new to learn.’ And the Seasons Art Class is as much about social time as the art for many students, with weekday classes appealing to men and women who aren’t going out to work — many retired, and others stay-at-home parents. ‘There’s a real community feel between the students, and our franchisees and tutors work hard to build relationships and connections with everyone, which is part of why they keep coming back.’

The best thing I’ve ever done Sarah Eames, who owns a Seasons franchise in England, describes the opportunity as, ‘Quite simply, the best thing I’ve ever done to get myself a worthwhile and profitable lifestyle business. All the systems and processes have been thoroughly worked through.’

“‘The Seasons is an enjoyable, fun, prestige, profitable, part-time business, operating adult art classes that only take one day per week and will be loved by everyone in the community.”

Start small, with option to build big fast The Seasons franchisees dedicate one day a week to be present and engaged in their class, with a few hours of business administration at home. They employ a qualified art tutor to run the class, and act as a classroom assistant themselves, so no art experience is necessary. Initial franchise training covers the process for running classes, managing the business side of things, basic art upskilling and terminology, and the importance of marketing on a local basis. ‘We take care of national advertising and logistics such as finding the space and training the tutor so you can focus on being the backbone of the group,’ says Mike. ‘Your role is to support the students and tutor, be visible as the owner of the business, and deal with set-up, pack-down and refreshments to fuel the budding artists.

Managed from home, excellent income potential We have proven profit margins of 35,000 per year after expenses for one day per week based on just 40 students per course, and the limited time commitment means franchisees can easily grow their business by buying

a second or third franchise, running another day of classes and doubling or trebling the rewards. ‘The great thing about this business is that it is very straightforward with no overheads, and very limited inventory, so being a business owner can be very relaxed and simple, or it can be the starting point to build your empire!’

Change your life The Seasons has identified key areas with nice venues available throughout Canada. ‘We’re ready to appoint franchisees in all areas right now’ Mike says. Very low investment for an area franchise $39,995 plus tax which ensures your exclusive area. ‘We’re looking for well-organised people who are big on interacting and connecting with others. We will provide the training and everything else you need to succeed—you don’t have to be an artist yourself, just share the enthusiasm for being creative. ‘If this sounds like you, give me a call and see how a part-time business could change your life.’ The Seasons Art Class www.perfectparttimebusiness.com/ canada Contact Lori Karpman at 514-481-2722 or lori@lorikarpman.com

Page 11

ex per t advice

Joseph Pisani | Director North American Industry Sectors, Franchise Finance | BMO Bank of Montreal

Lookin make fran profita

It’s tim about c

Franchising represents a great opportunity for business ownership. As a franchisee in a major network, you can expect to benefit from professional marketing, national advertising, specialized training, and centralized purchasing. As well, you are more likely to succeed with a well-established franchise than with a non-franchised independent business. But in order to take full advantage of the opportunity and help put you on your way to long-term success, it’s crucial to look at how cash flow is being managed.

Page 12

Cash flow planning involves three elements: the amount of cash coming in, the amount going out, and the cash you have on hand. Even if you’re a profitable franchise, having more cash going out than coming in can be problematic. Without cash on hand, you may not be able to meet your day-to-day business obligations; among other challenges, you may end up paying more in interest when you borrow money to stay afloat.

basis. A good rule of thumb is to review, at the very least, annually; the financial management strategy that worked for the business last year may not be the most effective solution in the coming year.

Understand your sales cycle

Review, review, review

It’s important to know the ins and outs of your franchise’s sales cycle. To help you better understand it, look at whether the business is seasonal (so you will know when to expect ebbs and flows) and how dependent it is on things like foot traffic. If a chunk of your business depends on getting customers in the door, look to supplement that with an online storefront for when traffic might be lighter.

When it concerns the flow and use of money – accounts receivable, accounts payable, investments, cash, operating expenses, etc. – a business owner must be committed to reviewing the company’s ongoing needs and processes on a regular

How the pay period is structured is another factor that can impact the sales cycle. Ensuring customers are paying you before you have to pay suppliers represents a good practice. Being able to identify the peaks and valleys of your

When looking at how to get the best handle on managing cash flow for your franchise, I talk to franchisees about four things:

Canadian Franchise Magazine

ng to your nchise itable?

me to talk cash flow

business cycle will help with identifying potential cash flow issues.

Manage the money going out The employee pay period can influence a franchise’s cash flow. Paying employees on a weekly basis will mean that money is going out more frequently, which can put pressure on finances in the short term. If employees are paid weekly, look to switch the pay period to either biweekly or monthly to help alleviate some pressure. Stretching your average payment cycle by even just five extra days can also help alleviate some of the short term pressure on finances. It’s also important to stay on top of all Canada Revenue Agency (CRA) payrollrelated regulations to avoid costly fines. For instance, if you pay remittances for Canada Pension Plan contributions, income tax or employment insurance late, CRA may charge a 10 per cent penalty.

“Cash flow planning involves three elements: the amount of cash coming in, the amount going out, and the cash you have on hand.”

The CRA will charge a 20 per cent fee if you’re late twice. Part of cash flow management is looking at where to allocate resources that can help with long-term profitability. Look to technology investments that help spur customer loyalty. Consider options like point of sale terminals and Guest Wi-Fi. Both provide convenience and add-on services to customers as well as providing the franchise owner the ability to get a better understanding of their customers – what they are buying and time spent in the store or restaurant. Getting a deeper understanding of the customer base can help find ways to get repeat business and target new customers as well.

Lean on your bank (relationship manager)

will post to your account, as well as if you can make a deposit before midnight, receive same-day credit, and have access to a line of credit that will provide some security during negative cash flow periods. Franchising is an exciting opportunity, if done right. As a franchisee, look at ways to manage cash flow to help with longterm success and profitability. It requires planning, perseverance, and careful monitoring, but it’s a crucial pillar to a successful business. Joseph Pisani is the Director North American Industry Sectors, Franchise Finance for BMO Bank of Montreal (BMO). For more information visit bmo.com/franchising

One thing that franchisees (or all business owners) sometimes neglect is looking at the overall role that their bank can play. There is far more to be gained in the long term if a business owner looks at what a bank can do to help the business achieve its goals. If your relationship manager at your bank has an understanding of your business, he or she should be able to offer terms that benefit your operational structure and cash management needs. Ask potential banks how quickly your sales receipts

Joseph Pisani

Page 13

ex per t advice

David Banfield | President | The Interface Financial Group

Research Research Research You are probably reading this magazine because you have already decided that your next business venture will be a franchise. You have probably come to this decision after extensive research and investigation and are doubtless now well on the way to making a final decision.

David Banfield

Page 14

Just before you make that final â&#x20AC;&#x2DC;leap of faithâ&#x20AC;&#x2122; take a second look and make sure that you have really examined all the key aspects of not only owning a franchise

but becoming a business owner and possibly an employer. There still exists a common myth today that a franchise is a silver bullet to success - being awarded a franchise will automatically make you a successful business person. It is unlikely that you will be able to find a franchisor that will subscribe to that notion, as a franchise is as much hard work or smart work as any other business and there is no silver bullet to success â&#x20AC;&#x201C; success comes through the application of your own resources. Notwithstanding all your research and background checking, we suggest you take a second look at certain key areas before you make the all-important final decision.

Canadian Franchise Magazine

“Notwithstanding all your research and background checking, we suggest you take a second look at certain key areas before you make the all-important final decision.”

“Plan for success: take a second look at your business and marketing plan and make sure that you have really planned for success and not just planned for existence.”

The Franchise System Every franchise is foremost a system that, in the main, has been tried and tested over time. These are features that probably attracted you to a particular franchise – plenty of history, plenty of background and plenty of experience. That having been said, a franchise is still primarily a system and one that needs to be followed not only from the point of view of maintaining good standing with the franchisor, but for the overall success of the business. In your second look approach, look again at your own personal resources and your background and make up. Are you an individual that can follow a system? Are you an individual that is comfortable working within the framework of a system developed by someone else? Many people respond to these questions readily in the affirmative, however the reality is often not positive inasmuch as many individuals acquiring a franchise do their best to reinvent the system or even shortcut the system when they feel that they have better ideas than the experienced franchisor. If you see yourself as a true entrepreneur, then perhaps franchising is not for you as the majority of entrepreneurs like to reinvent the wheel on a regular basis. Franchising

does not allow that opportunity, so you need to be absolutely certain that you have the background and personal make up that can work with a ready-made system.

Financial Resources When you started your search for a franchise financing was probably high on your list of ‘must do’ items. Although you may have adequate funds to meet the projections that you have developed or those provided to you by the franchisor, take a second look and double check the numbers. One of the common mistakes that would-be franchisees make is not having sufficient capital on hand notwithstanding their research. Just because you’re buying a franchise which is tried and tested, it does not mean that there cannot be unexpected expenses from time to time and, therefore, a contingency should always be built into your financial plan. Again, a franchise offers you a model and a timetable to ramp up and get the business open and operating. While that timetable is based on experience, it is not infallible and on occasions a business will take longer to start-up than expected, so it is essential that you have the financial resources to handle any such delay in developing the cash flow.

Human resources The majority of franchises will require you to recruit individuals for various positions within the business. Sometimes

these individuals will require special skills and knowledge and you should, therefore, take a second look at the availability of such individuals in your area and, perhaps if you have not already done so, you should test the market to see exactly what skill sets are available. As a business/franchise owner you will also need a varied skill set in terms of not only recruiting but managing and training others – make sure that there are adequate resources available, because if not then invariably the tasks will fall on the owner’s shoulders to complete, and one individual can only stretch their talents so far.

Plan for success Take a second look at your business and marketing plan and make sure that you have really planned for success and not just planned for existence. As we have mentioned the franchise is not a silver bullet to success, however a franchise can be an extremely valuable vehicle that can move you into the realm of a successful entrepreneur, usually in a shorter timeframe than if you are starting your own business from scratch. Buying a franchise and entering the world of business ownership can be both exciting and at the same time maybe even a little scary - when you have done the research and got all the numbers together, then take a second look and double check that all the key elements are in place to ensure that your success is achievable. David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com/franchise

Page 15

ex per t advice

Lori Karpman on behalf of Canadian Franchise Magazine

The Importance of Selecting

the Right Location for your Franchise If you ask anyone in the retail industry what the 3 most important elements of success are they will tell you: (1) location, (2) location and (3) location! Where you choose to locate your business will have a substantial impact on customer count, top lines sales and bottom-line profits. It needs to be able to support your business now and in the future as most franchise agreements have an Initial Term of 10 years, (and often have renewals). Before a location can be selected you must understand certain elements of the business and what you require in your local area. This list is not exhaustive nor in any particular order of importance, they are all important. 1. Who is your ideal/target customer? Who exactly are your customers- be as specific as possible? 2. How long will people need to travel to reach you? Do they walk, drive or take public transport? If the latter then easy access to local transportation is vital. 3. Will customers drive to your location or does it have to be within walking distance? Customers will drive longer and further for a speciality item than for a convenience item.

Page 16

4. What is the “Customer Traffic” in the area, that is, the number of customers visiting the location, number of vehicles passing by, and the number of pedestrians who can walk to the location. 5. What is it that you are selling- is it a product or service? Often services are best placed in local strip malls off the main thoroughfare. 6. What size location is required? How many square feet do you need and how do you divide that space between retail and back office or storage? 7. What are the demographics of the area you are looking at and are they your target market? By demographics we mean, the age, income, education, family size, how many cars a family owns and more information about the people who live in the area. 8. Do you need parking, storage space or room for a terrace? What additional location needs do you have? Special ventilation, plumbing or frontage required for example. 9. Will you be doing online sales and if so, do you need to carry inventoryas this will require additional dedicated space. 10. Does your business cater only to certain day parts, like a breakfast only place that closes at 3pm, or do your customers come at all times of the day? This is important as you

want to be on the correct side of the street to make it easy for your customers to access you. What side of the road do you need to be on, is called access and egress? You want to make sure you are on the “right side of the street”. If you are a breakfast place it is ideal to be on the side of the street people take in the morning to get to work. If you are dinner, then be on the evening traffic side of the street. While it sounds silly, truth is customers do not like to have to cross medians, or droves of oncoming traffic. 11. How important is visibility from the street? Or is it not important because you have a unique product that customers will seek out?

Canadian Franchise Magazine

“Where you choose to locate your business will have a substantial impact on customer count, top lines sales and bottom-line profits. It needs to be able to support your business now and in the future.”

12. How much you can afford for total occupancy cost, that is the rent, plus any common area expenses or are there other financial tenant obligations. 13. Who goes on the Head Lease, is it the franchisee or the franchisor? 14. Who will negotiate the head lease, is it the franchisor or the franchisee? It is important to get a handle on the answers to the above questions before beginning the search for the perfect location. Remember the selection of space is long term and requires a high capital investment. Certain types of products dictate location by their very definition. For a convenience purchase, you need quick

and easy access to let customers come and go quickly. For a specialty store, people are willing to drive a little longer because they may not be able to find the product or service locally. If you sell larger items an indoor mall location may not be the best choice, rather find one with parking and or a loading dock that is easily accessible. Strip malls work well for these concepts. An enclosed mall, however, is a fabulous location for personal services such as hair and nail shops, and retail items such as clothing and homewares. There are a variety of ‘trade areas” or “zones” to consider depending on your product or service. A trade area is the geographical area from which the store attracts customers.

It is also sometimes referred to as the “catchment area”. There are three basic types of trade areas:

Solitary Sites or Free-Standing Locations:

These are single, free standing shops, which are isolated from other retailers, even though they may be on a concrete pad space in a local shopping center. These are often used in the restaurant industry as well as destination businesses such as grocery stores, mass retailers like Costco and others of the same ilk. Occupancy costs for free standing space is often less than elsewhere and there are generally fewer operating restrictions such as use clauses. Use

Page 17

ex per t advice

Lori Karpman on behalf of Canadian Franchise Magazine

“As you can easily see there are a lot of considerations in choosing the right location for your business. Fortunately for you, franchisors often have a lot of experience in this area and will be an invaluable source of assistance.”

clauses are put into leases to grant a tenant exclusivity for the sale or one or a series of items. So, a local shopping centre with a pizzeria will not likely allow another pizza shop on the property. The disadvantage generally is that there is much less pedestrian traffic, the store must be a “destination” place that people are willing to drive to. This is why these spaces are ideal for restaurants as they generally also have ample parking.

Unplanned Shopping Areas:

These are areas where retail has evolved over time. Generally, we see multiple retailers sharing space. They can be “downtown” locations and retail “strips” along a highway, or your local Main Street for example. There is high traffic but only during business hours. Secondary business districts are in larger cities, on the town’s main thoroughfare. If business owners are your demographic then these types of sites may fit well as your customers can come before or after work.

Planned Shopping Areas: These are areas that were expressly

Page 18

built to hold multiple tenants. Those large outdoor centers with a gaggle of tenants are called “Power Centres” or “Lifestyle Centers” and they are always designed to be strictly retail. There may be one road, or it may even look like a small city with a large pad and a variety of tenants. These have the significant advantage of having ample parking, though occupancy costs can be higher in these centers as there are large spots of land and parking to light, clean and maintain or higher property taxes. There is always great visibility for these centers, always with easy access and egress. Before you sign any lease be sure you have read it and passed it along to an attorney to review for you. There are often sets of rules and procedures related to your retail store location, such as a non-competition clause for example. You may also want to contact the local city hall and/or zoning commission to make sure the franchisor’s signage package is acceptable or subject to restrictions. There may be limits on the size and/or imagery you can use to advertise your business. It would also be nice to know what if any construction projects are

planned for the area as this may affect your customer’s ability to reach you or can signal higher sales volumes in future years where there is a highway or new residential area on the horizon. As you can easily see there are a lot of considerations in choosing the right location for your business. Fortunately for you, franchisors often have a lot of experience in this area and will be an invaluable source of assistance. In almost all cases, the franchisor has to approve the final lease so you can be sure they will conduct an ample investigation. Remember though that a franchisor’s consent of the location does not mean it is guaranteeing results or making any financial representations. They are just confirming that the right criteria for their concept are in place. Lori Karpman is President of Lori Karpman & Company - A fullservice firm providing a full range of consulting and legal services. For more information contact Lori at: (514) 481-2722 lori@lorikarpman.com www.lorikarpman.com

Canadian Franchise Magazine

canadian franchise magazine is part of the global network of CGB Publishing

With 30 years experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity for international franchise marketing solutions.

Franchising U S A

Canadian Franchise Magazine

$5.95 www.franchisingus

amagazine.com

THE MAGAZ INE

FOR FRANC HISE

VOL 07, ISSUE 7,

ISSUE 4#1 - 2019

MAY 2019

ASSISTED LIVING LOCATORS WANTS TO GET

w w w. c a n a d i a n f r a n

chisemagazine.co

THE WORD OUT TO HELP SPU R GROWTH

PART-TIM E BUSI NESS WITH FULL-TIM E INCO ME

THE SEASONS

INVEST TO BE THE BEST

OF THE IMPO RTA NCE

SELECTING THE ON RIGHT LOCATIISE

THE LONE ENTREPRENEUR

FOR YOU R FR A NCH

E YOU R LOO K ING TO M A K BLE ? FR A NCH ISE PRO FITA

SPECIAL FEATURE

HEALTH, BEAUTY & FITNESS LATES T NEWS

FINAN CIAL ADVIC E FROM THE BANK S

IT’S TIME TO TALK ABOUT CASH FLOW

TOP LAWY ERS’ ADVIC E

Business Franchis

e Australia and New

LATEST NEWS

FROM THE BANKS FINANC IAL ADVICE

Page TOP LAWYE RS’ ADVICE

Zealand 1

Visit www.canadianfranchisemagazine.com to find out more Page 19

focus

Cameron Wears | Senior Manager, Franchise Development | O2E Brands

The Rise of Mobile Franchises A nd W hy T here ’ s N ever B een a B etter T ime

For decades, traditional brick and mortar franchises have been a solid bet for new business owners, with the food service industry dominating the space since A&W came onto the scene in the 1920s. While food and beverage is still a safe bet for many, there is a new kid on the block. Or, in this case, in the neighbourhood.

Mobile franchises–business that travel to their customers–are a growing prospect for those looking for more dynamic opportunities.

Why Mobile is Poised to Unseat Food As A Top Franchise Opportunit For the past two years, mobile companies have been making waves on the Entrepreneur Franchise 500, breaking into the top 20 and jumping as much as 147 places on the list. Why is mobile such a promising opportunity?

“If you’re considering hopping on the mobile wagon, look for proven systems that will help ease your administrative load. In a mobile business, building and strengthening customer relationships is paramount.” Page 20

The major advantage of mobile businesses is that the overhead is typically much lower than for a storefront. If you do require an office in addition to your vehicles, it doesn’t need to be in a high traffic, high dollar per square foot area. In Toronto, the average dollar per square foot for rented commercial space is $20.79, compared to rented office space, which comes in at a much more palatable average of $14.65 (Toronto Real Estate Board). That six dollars per square foot may not sound like a lot, but over the last few years, it has been prompting restaurateurs to rethink their business plans. For our home services brands, all of which travel to the customer, new Franchise Partners don’t have to worry about carrying costly office leases. The mobile nature of these businesses means

Canadian Franchise Magazine

the average investment for our brands is lower than for more traditional brands; the total investment for WOW 1 DAY PAINTING is as low as $65,000, You Move Me as low as $78,000, and Shack Shine as low as $50,000.

Flexibility and Variety Rules Many of our new Franchise Partners have come to us in search of a business that they can fit around their lives and growing families. With childcare costs on the rise, and with more than 44% of nonschool aged children living in areas with fewer daycare spots than children, today’s parents need flexibility in order to make it all work. Running a mobile franchise gives business owners the ability to create their own schedules and offers much more flexibility than being tied to a physical office or store all day. Many of our Shack Shine Franchise Partners can choose where and when to start their home detailing services on any given day, ensuring that they’re with their families when they want to be.

Customers Thirsty for More The home services market, by nature a mobile opportunity, is a fractured space made up of many mom and pop shops offering various levels of customer service. But today’s customer is searching for more. Whether it’s using Amazon, Uber, or DoorDash, they’re looking for convenience and exceptional service. And many mobile services fall short, finding that the cost to reacquire disenchanted customers is simply too high. If you’re considering hopping on the mobile wagon, look for proven systems

“For the past two years, mobile companies have been making waves on the Entrepreneur Franchise 500, breaking into the top 20 and jumping as much as 147 places on the list.”

that will help ease your administrative load. In a mobile business, building and strengthening customer relationships is paramount. If you’re backed by a 24/7 call center, online booking engine, and social media support, you’ll be able to focus on acquiring customers. One of our most valuable support systems is our recruitment resources and training programs, which allow our Franchise Partners to find and retain great people in an industry where this can be immensely challenging. Our WOW 1 DAY PAINTING Franchise Partners are taken through comprehensive painting training, not because they are going to do the painting themselves, but because this knowledge helps them hire and motivate their teams. When you take care of your people, they’ll take care of your customers. And your customers will take care of your brand.

A Shortcut to Evaluating an Opportunity Whether you’re looking at mobile or a more traditional opportunity, a little research will go a long way. Start with the businesses online reviews. Check Google and Facebook. Are the customer reviews recent and positive, enough to make it stand out from the competition? With 95% of people looking for reviews

before making a purchase, it is critical to have a large volume of recent glowing reviews available online. Our You Move Me franchises enjoy customer satisfaction ratings that are unusually high for the moving industry, thanks in part to the dedicated customer experience manager who monitors and resolves complaints in a timely manner, making sure every customer has an exceptional experience. When prospective customers see that a company is proactive about resolving issues and communicating with customers, this establishes trust with the brand and makes them more likely to choose them. This is a good indicator of the level of support you’ll receive when you start a franchise business with the brand you’re looking at. If the franchise system has quality support around building online reviews and ensuring customer satisfaction, you know you’re in good hands. About O2E Brands Based in Vancouver, B.C., O2E Brands is home to 1-800-GOT-JUNK?, You Move Me, WOW 1 DAY PAINTING and Shack Shine. Our uniquely branded companies focus on providing exceptional customer service in traditionally “ordinary” home service industries.

Page 21

ex per t advice

Wayne Maillet | Founder and Franchise Management Consultant | Franchise Specialists

Franchise

fees

Initial and Ongoing

â&#x20AC;&#x153;Once you have been approved for a franchise and you are in the process of signing the franchise agreement, the franchisor will request you to pay an initial franchise fee. Franchise fees are typically paid for the use of the brand and the operating system.â&#x20AC;?

Wayne Maillet

Have you ever wondered why a franchisor would charge an initial franchise fee or ongoing royalties? Could you make more money by avoiding these costs and opening as an independent business? Page 22

There are costs associated with belonging to a franchise. It may appear that the costs are high, but the value typically outweighs the cost. The alternative costs of starting a business on your own is learning through trial and error while making costly mistakes or, long term, paying higher marketing costs as an independent to compete against established brands. In addition, there are the lost revenues resulting from not having the research and development resources to remain relevant in a constantly changing marketplace.

the use of the brand and the operating system. It is the licensing fee to belong to the franchise system. Think of it as a membership fee to belong to the club. The Initial franchise fee will vary from $5,000 to $75,000. How much the initial fee is varies depending upon the amount of training and support that is provided to get the new franchised location up and running. In addition to the initial training and support, the initial franchise fee covers the cost of franchisee recruitment, territory analysis, site identification and your grand opening launch.

Initial Franchise Fee

Typically the more established and recognized the brand of the franchisor the higher the initial fee but not always. Do your research. Look at competing brands and see what they charge to ensure that you are paying fair market value.

Once you have been approved for a franchise and you are in the process of signing the franchise agreement, the franchisor will request you to pay an initial franchise fee. Franchise fees are typically paid for

Canadian Franchise Magazine

“Ongoing royalty fees charged by different franchisors will vary from 0% to 20% of gross sales and usually paid monthly. The amount will depend upon the level of ongoing support and services that are provided by the franchisor.”

Ongoing Royalty Fees Ongoing royalty fees charged by different franchisors will vary from 0% to 20% of gross sales and usually paid monthly. The amount will depend upon the level of ongoing support and services that are provided by the franchisor. For example, some franchisors provide a centralized call center with order taking. This requires a greater cost that is addressed with a higher royalty. Where no royalty is charged, it is basically built into product sales in the form of mark-up or rebates on products. Most franchises require the franchisee to pay a royalty for the right to use the franchisor’s trademarks and operating system. It is the franchisor’s portion or share of the revenues for allowing you to use the system. The franchisee benefits from using the trademarks and operating system to increase the value of their business assets and future income by being connected to an established brand. Customers are more receptive to products and services that are associated with a known brand, and this in turn will generate revenue. Once you have found a new customer, the operating systems are in place to assist you in keeping them as repeat customers. Typically the more involved the franchisor is with the ongoing business operations, the higher the fee. The franchisor uses the royalties to develop an infrastructure that provides ongoing support to the franchisees through: • Consulting, sharing of best practices • Arranging suppliers to capitalize on purchasing power • Research and development • Operational reviews and ensuring brand consistency • Computerization

• Field support • Initial training programs • Ongoing training programs For a franchise system to be successful, royalties need to be both affordable for the franchisee and large enough for the franchisor to be able to fund the necessary support. There are numerous variations regarding royalty fees. Some franchisors charge escalating or declining percentages, based on different level of sales. Other franchisors do not charge a percentage of sales but instead charge a royalty based on a flat fee each month. Alternatively the franchisor may charge no royalty at all but instead earn revenues through a mark-up on product sales. A flat fee royalty is often used when it is difficult for the franchisor to monitor the franchisee’s monthly sales. This system may seem attractive to the franchisee, allowing you to know exactly what your franchise costs are going to be each month. But the downside may be that there is no incentive for the franchisor to work with you to increase your sales. Revenues to the franchisor through product fees are typically used when the franchisee is distributing a product manufactured or distributed by the franchisor. Examples of a product-based franchise are gas stations or automobile dealerships. Product franchising derives income from selling products wholesale

to the franchisees with a profit margin for the franchisor built into the wholesale pricing. The franchisee is required to purchase the product from the franchisor in the license agreement. It is not uncommon to at some point during your business’s growth to ask yourself, “Why am I paying these royalties?” The benefits to paying royalty fees will usually far outweigh the costs. A royalty is a cost of doing business as a franchise. It gives the franchisee the right to operate a business under a proven brand and business model with ongoing support and resources. Always do your due diligence when looking at any franchise opportunity and talk to franchisees. Not all franchises are the same. Ask both the franchisor and franchisees the necessary questions to ensure that the value for the royalty is there. Wayne Maillet is a franchise management consultant and founder of the consulting company Franchise Specialists. Respected within franchise circles, he brings a realistic, practical understanding of business and franchising. This article is based on excerpts from his book, Franchising Demystified. The book can be ordered through most book retailers or directly from the publisher at: www.franchisingdemystified.com

Page 23

ex per t advice

Edward (Ned) Levitt | Partner | Dickinson Wright LLP

Franchise Mergers and acquisitions Mergers and acquisitions of franchise companies have been steadily increasing over the last decade. This trend is set to continue for some time, for a variety of reasons.

profitable divestitures, the private equity community has definitely discovered franchising. This includes larger multiunit and multi-brand franchisees as well. And the public markets are showing a similar appetite for franchise companies, allowing for some very successful IPOâ&#x20AC;&#x2122;s at attractive prices.

There is a lot of cash in the coffers of private equity companies, which must be deployed by acquisitions. With growing examples of private equity acquisitions of franchise systems and subsequent

Contributing to this growth is the fact that investing in a quality franchise system has lower working capital requirements than other types of businesses and can generate a long-

Page 24

term and predictable revenue stream. Furthermore, an increase in revenue, and consequent increase in value, can be achieved with a reasonable effort from an acquirer and a modicum of growth capital. As the appetite for franchise acquisitions grows, the existing stock of attractive targets is growing at only a modest pace. The consequence is that the valuations for franchise systems are rapidly increasing, with multiples of EBITDA often reaching into double digits.

increase in the retirement of the baby boomer owners of these systems for the next decade or two. While this may have a dampening effect on valuations, this trend will also support an increase in strategic acquisitions and consolidations, i.e. 1 and 1 may equal 3! The size and sophistication of some of these franchise systems and the transactions that evolve are impressive and often rival traditional businesses as to scope and complexity. Certainly, many of the issues, challenges and approaches are the same in franchise and non-franchise M&A transactions. However, for a variety of important reasons, franchise M&A has an additional layer of complexity and risk. Edward (Ned) Levitt

When it comes to a discussion of mergers and acquisitions in franchising, the world can be divided into several sectors; the small systems with under $2 million dollars of EBITDA, the typical middle sector of systems with $2 to $5 million dollars of EBITDA and the higher end sector above $5 million dollars. The most prized franchise systems are the ones whose EBITDA exceeds $10 million dollars. The principle at work here is that, regardless of how much EBITDA the system generates, it costs a similar amount for due diligence, executive time and professional fees to make an acquisition. Of course, franchise systems come in all shapes and sizes and the decision to buy has to be based upon many factors, including the systemâ&#x20AC;&#x2122;s staying power, growth potential, franchisor/franchisee relationships, management team, brand value and much, much more.

M&A in franchising can be quite different if: the system is public or private, large or small, provides services or products, the franchisees have multiple units or multiple brands, the franchisor has expanded through master franchising or, perhaps, the seller is a large master franchisee itself within a broader system. It is rare for a franchise system to have a lot of hard assets, such as real estate or valuable equipment, even if it has a

high valuation. The value of the system resides primarily in its brand, franchise agreements with franchisees and the relationship between the franchisor and the franchisees. The correct value of the system and how the acquisition is executed needs to take into account the strength, durability and transferability of these assets. This leads to a unique set of due diligence issues and choices and, while proper due diligence is important in any acquisition, it is critical in a franchise acquisition. Some of the typical areas for due diligence, relate to the financial performance of the franchisor and its franchisees, the content of all franchise agreements and leases, the status of any marketing fund, the condition of all accounting and computer systems and the status of all intellectual property. In addition, however, there are some very important, but less common due diligence areas an acquirer of a franchise system should consider. For example, what the relationship is like between key management personnel and the franchise community. If it is not a good one, then the acquirer will need to be able to readily replace such people. On

â&#x20AC;&#x153;When it comes to a discussion of mergers and acquisitions in franchising, the world can be divided into several sectors; the small systems with under $2 million dollars of EBITDA, the typical middle sector of systems with $2 to $5 million dollars of EBITDA and the higher end sector above $5 million dollars.â&#x20AC;?

The higher the EBITDA number, the larger and more sophisticated the buyer will likely be. Some private equity companies have several to many brands within their stable of franchise systems at any one time. For the franchise systems with lower EBITDA, the purchasers are more likely to be management, venture capital companies, suppliers, competitors, or other strategic buyers. An important trend with the smaller franchise systems is emerging in parallel with the aging population. It is anticipated that there will be a significant

Page 25

ex per t advice

Edward (Ned) Levitt | Partner | Dickinson Wright LLP

“Most importantly, there is the reality that the franchisor/franchisee relationship is at the heart of any successful franchise system and, in an acquisition of the system, preserving and, hopefully, enhancing that relationship is key.” the other hand, if the relationship is very good, then the acquirer will want to know what the likelihood is that they can be retained after the acquisition is completed. Another is the timing of franchise sales. If too many franchises are sold in too short a period of time, it may indicate trouble in the future because all franchisors have to be able to “service what they sell” and a quality franchise culture takes time to grow without the pressure of a constantly and rapidly expanding franchisee population. Conversely, if too many franchises are being resold by existing franchisees, there may be trouble lurking in the system. Also, a thorough analysis of what the franchisor spends on site selection, franchisee selection, initial franchisee training and support will be very revealing about the health and viability of the system. Franchise systems that grow quickly and without sufficient resources being deployed in these very crucial areas may present as

Page 26

very successful on the surface, when there is really a lot of rot at the core.

Conclusion Much of the same considerations, requirements and issues in M&A transactions with businesses generally apply when an entire franchise system is acquired. Overlaid on all of that is the added franchise specific considerations, issues and challenges. Most importantly, there is the reality that the franchisor/ franchisee relationship is at the heart of any successful franchise system and, in an acquisition of the system, preserving and, hopefully, enhancing that relationship is key. This leads to the reality that how something is done is equally important as to what is done. Further, the ability to zero in on the true state of affairs in a targeted franchise system is more challenging than would be the case in the acquisition of another type of business. Finally, an acquirer has to

struggle with the legal framework of the business being franchised and the laws which govern franchising specifically. Edward (Ned) Levitt is a Certified Franchise Executive, a partner at Dickinson Wright LLP, Toronto, Canada, and provides legal services to Canadian and international clients on all aspects of Canadian franchise law. He was General Counsel to the Canadian Franchise Association (2000-2007) and is a member of the American Bar Association Forum on Franchising, the International Bar Association and the International Committee of the International Franchise Association. As a member of the Ontario Franchise Sector Working Team, Ned was instrumental in the creation of Ontario’s franchise legislation and has had significant input in the franchise legislative process throughout Canada. Among his many publications is the leading text, Canadian Franchise Legislation (2001, LexisNexis/Butterworths). Ned can be reached at 416.646.3842 or nlevitt@dickinsonwright.com.

BIG OPPORTUNITIES FOR BOLD ENTREPRENEURS

Meet face-to-face with over 400 proven franchise opportunities and take the next step toward business ownership with one-on-one meetings and educational seminars hosted by the foremost experts in franchising.

REGISTER TODAY FOR FREE! VISIT IFEINFO.COM AND USE PROMO CODE FRANUSA MAY 30-JUNE 1, 2019 • THE JAVITS CENTER • NEW YORK, NY Sponsored By

Supported By

IFEinfo.com

H AV E YOU R SAY

Josh Robinson | Vice President of Licensing & Development | Pearle Vision

4 Reasons To

Invest In An Optical Franchise in Canada

“The optical industry is an ideal niche for investors who may be interested in a healthcare franchise, and Pearle Vision is one of the largest franchised optical retailers in North America.”

Financial Opportunity

The startup costs for a Pearle Vision franchise are low, while the opportunity is great.

Whether you are an optometrist or an investor who is intrigued by the healthcare industry, optical franchises present a great opportunity in cities across Canada. “What’s great about the optical industry is that we’re at the intersection of healthcare and retail, which is really advantageous for a number of reasons,” says Alex Wilkes, general manager of Pearle Vision. “More often than not, we’re more recessionproof than traditional retail. We are not as susceptible to some of the other

Page 28

challenges of retail, such as e-commerce. We provide a service that customers and patients want and need. And we help patients see better and live fuller lives.” There is a tremendous market opportunity in Canada. In 2017, Canadians spent C$4.8 billion ($3.62 billion USD), or 2 percent of healthcare spending, on vision services, according to the Canadian Institute of Health Information. Sixty percent of Canadians report vision problems that require, at minimum, corrective lenses, and an aging population means an aging workforce for whom clear vision is a priority. Here are four reasons why you should consider investing in an optical franchise in Canada:

At minimum, a Pearle Vision licensed owner, or franchisee, must have C$132,371 ($100,000 USD) in liquid capital and a net worth of C$397,115 ($300,000 USD). Startup costs for a Pearle Vision EyeCare Center range from C$528,743 to C$799,397 ($399,439$603,904 USD). According to Pearle Vision’s U.S. Franchise Disclosure Document (May 2019): The average annual revenue for a U.S. Pearle Vision EyeCare Center owned by an optometrist is C$1.583 million ($1.183 million USD); the average annual revenue for a U.S. Pearle Vision EyeCare Center that subleases space to an optometrist is C$1.19 million ($890,000 USD); and the average annual revenue for a U.S. Pearle Vision EyeCare Center that employs an optometrist is C$1.773 million ($1.325 million USD).

Canadian Franchise Magazine

“The need for good health is a constant. As people age, vision care becomes more critical and they are more likely to require glasses or contact lenses.”

Recession-Resistant

The need for good health is a constant. As people age, vision care becomes more critical and they are more likely to require glasses or contact lenses. Healthcare needs such as eye exams and corrective lenses do not vary as the economy ebbs and flows.

Valuable Supply Chain

An advantage of affiliating with a larger corporation is access to an established supply chain. Pearle Vision has more than 500 EyeCare Centers across North America, providing the brand strong buying power that yields deep discounts from vendors. Because Pearle Vision is owned by Luxottica, Pearle’s licensed owners have access to some of the industry’s most fashionable and popular eyewear brands, including Ray-Ban, Persol and Oakley.

Growth Opportunity

Optical franchises such as Pearle Vision have business models that are designed to be scalable. Pearle Vision’s licensed owners can operate multiple locations, and the brand offers exclusive territorial rights in exchange for an area development agreement in which a licensed owner commits to opening multiple EyeCare Centers in a certain area. The optical industry is an ideal niche for investors who may be interested in a healthcare franchise, and Pearle Vision is one of the largest franchised optical retailers in North America. To learn more about the Pearle Vision franchise opportunity, visit ownapearlevision.com or call 1-800-PEARLE-1. Josh Robinson is vice president of licensing & development of Pearle Vision and is responsible for defining and developing business strategies to grow the Pearle Vision franchise

Josh Robinson

system. Robinson joined Pearle Vision in 2012 and previously oversaw the franchise store operations team in the Eastern United States, Eastern Canada and Puerto Rico as a territory vice president. He has more than 20 years of experience supporting franchisees and helping them optimize the performance of their businesses. Before joining Pearle Vision, he was senior director of operations for Dunkin’ Brands.

Page 29

ex per t advice

Lora Kellogg, CFE | President and CEO | Curious Jane

Boost

for Fra

“You’ve probably heard the adage, ‘Content is king.’ Not only is that still true, but it may be more important than ever to fill your web pages with high-quality, relevant content.” Page 30

Canadian Franchise Magazine

4 Ways to

st Local SEO

anchise Websites Lora Kellogg, CFE

Your corporate website needs to perform well to bring in leads, and so do your franchisee sites. To help your websites perform better, you need to improve your SEO, or search engine optimization. SEO is the use of technical and creative components to enhance a website’s performance in organic (or unpaid) search rankings. Google acknowledges that its ranking algorithm considers more than 200 factors. To further complicate things, the factors that affect SEO seem to be changing all the time. So where should you start? Here are four specific, concrete steps that you can take to boost SEO for your franchisee sites:

Make Sure They’re Responsive This made sound obvious, but local websites really must be mobile-friendly. More than half of all website traffic last year was generated through mobile phones, and that is only going to increase. Google has recommended that sites be fully responsive and has said it is indexing mobile-first, which means the mobile version of your site is what is used for indexing and ranking. You need to ensure that no content is hidden on mobile views. Designers tend to pare

what is visible on mobile because they want the user to have a great, quick experience, but it does not help if you “hide” content full of keywords.

Post Awesome Content You’ve probably heard the adage, “Content is king.” Not only is that still true, but it may be more important than ever to fill your web pages with high-quality, relevant content. Content should be fresh and include smart use of keywords. Google bots can discern the difference between well-written content and keyword-stuffing. Blogs are useful because they drive more traffic than anything else to your site; they also add pages of keyword-rich content. Think about what users will search for, and write as if you are answering their questions. Use long-tail, conversational keywords, because users search in sentences not just a word or two, and that will be more important as voice search increases. Blogs also provide opportunity for internal links to other content on your site, which helps Google bots understand how the content goes together. However, Google bots cannot read text on an image, so any data or words on a graphic should be repeated in text.

Keep Them Secure If your websites’ URLs do not start with HTTPS, you should consider migrating to a secure site. Chrome and some other browsers are warning users about insecure sites, and some users do not

understand how to force their way in to a website. Google has announced that it’s important to have secure sites and that non-secure sites could expect to see an increase in bounce rates. A higher bounce rate could negatively affect SEO. Please note that most hosting companies give free SSL (Secure Sockets Layer) certificates that allow the site to be secured.

Consider User Experience The easier a website is for visitors to use, the longer they will stay on the site. And the longer they stay, the better for SEO. Your pages have to be easy to navigate. Pages should be named properly, and content must be kept upto-date. Your calls to action should be clear and easy to locate. Be careful with images: They can make pages more attractive, but if they are too large they could slow your load time, which hurts SEO. SEO may seem like a moving target, but it is an important target. Without spending more on advertising, your franchisees’ websites can perform better by improving SEO, and taking these four steps will be a great start. Lora Kellogg, CFE, is president and CEO of Curious Jane, an ad agency specializing in franchises. With more than 15 years of experience and a portfolio of top brands, she and her team work with established and emerging franchises to grow sales, increase traffic, build brand awareness and generate leads.

Page 31

WO M EN I N FR A NCH ISI NG

Subway Ce

F emale F ranchisees B u siness D evelopment Women are a fast-growing segment in franchising. Between 2011 and 2017, female franchise ownership jumped by 83 percent.

“No matter how hard you try to make customers happy, your efforts won’t matter if your employees are not happy.” - Montserrat Odio

In honor of Women’s History Month, four female franchisees and Business Development Agents (BDA) from Subway®, the world’s largest chain of locally-owned restaurants, shared their experience as female leaders. Hailing from different parts of the world, the four women -- Montserrat Odio (Costa Rica), Jennifer English (the U.S.), Margot Micallef (Canada) and Datin Cynthia Cheong (Malaysia) -- are responsible for managing and growing the Subway franchise in their regions. Their duties range from scouting locations for new restaurants, helping franchisees successfully open new businesses and training employees. Montesserrat, Jennifer, Margot and Cynthia have diverse backgrounds and unique paths that led them to franchising. However, for all four women, leadership extends far beyond managing a team and running a business. It also means empowering oneself, celebrating employees and giving back to the community. This resonated with Cheong, who has been with Subway for 16 years and now oversees 133 restaurants- including 32 of her own- in Malaysia. “I try to encourage learning for employees at all levels. To me, leadership means guiding, coaching and educating constantly with my team and family of franchisees. I want them all to feel as if the sky is the limit,” she shared. Odio, who owns and operates the 78 Subway restaurants located in Costa Rica, echoed this sentiment. “No matter how hard you try to make customers happy, your efforts won’t matter if your employees are not happy. I try my hardest to make every employee feel valued by celebrating even the smallest victories to emphasize that all tasks in this business are important.” Amongst the women, there is an understanding that their teams benefit from working with female entrepreneurs. “Instead of leading in hierarchical structure, women tend to lead in a spoke-in-the-wheel structure,” shared Micallef, who oversees more than 800 Subway restaurants located throughout Alberta and British Columbia.

“Instead of leading in hierarchical structure, women tend to lead in a spoke-in-the-wheel structure.” - Margot Micallef

“This is ideal for a franchise model as there are opportunities for BDAs to interact with a number of different participants and inspire them. When you function as a hierarchy, you lose touch with people who would otherwise benefit from communication.” However, English, a franchisee and BDA who owns and operates

Page 32

Canadian Franchise Magazine

elebrates

ranchisees and evelopment A gents stores in Western Texas and Southern New Mexico, recognizes that being a female entrepreneur is not without struggles. “Women traditionally don’t get support for their gut feelings,” she shared. “It’s important to believe in yourself as a woman and empower other women to feel confident. What makes Subway great is that I have supportive friendships across the country and internationally.” Margot, Cynthia and Montserrat echoed Jennifer’s statement and shared that through Subway they have found a culture where their best work and personal development are encouraged. “At Subway, it’s about empowerment,” said Margot. “It’s about empowering the franchisees to run their business, and empowering consumers when they come in to be able to order and buy food for their own wellbeing and health. And empowering staff so when they go into the restaurants, they can solve the problems the franchisees are facing.”

“It’s important to believe in yourself as a woman and empower other women to feel confident.” - Jennifer English

Along with managing hundreds of locations across their various territories, these four women shared that working with Subway at both the corporate and franchise level has presented an opportunity to give back to their communities. “We’ve been able to partner with USO and make lunches for soldiers who didn’t have money,” shared English. “In the past, we’ve also partnered with local underprivileged elementary schools to do fitness challenges, with the winning school receiving new gym equipment.” Odio has had a similarly positive experience. “More than a year ago my restaurants started an initiative where we educated customers on how plastic, such as straws, can damage oceans and marine life,” she recalled. “That has been very powerful for us, because we know we are doing something positive for our country and the next generation.”

During their years at Subway, these four women have learned valuable lessons, both about interacting with others and about their own capabilities. “Being able to interact with other Subway leaders is about much more than networking,” said Jennifer. “It’s about creating a support system that can turn to on a bad day.” “Working with Subway has allowed me to understand the value of resilience. There are things out there out of your control and all you can do is embrace those changes and keep moving forward,” shared Odio. “When you’re out of your comfort zone, everything works better. Your senses are alert, and your decisions are bolder and more thoughtful.”

“To me, leadership means guiding, coaching and educating constantly with my team and family of franchisees.” - Datin Cynthia Cheong Page 33

FR A NCH ISO R I N DUST RY A DV ICE

Lori Karpman | President | Lori Karpman & Company

DOING BUSINE

and failed, but many do prosper and have been rewarded with higher ticket averages and consumer loyalty. Although the entry price may not be cheap, the size of the market is something to consider, one third of the population of Canada lives in Quebec so it is not a market to ignore—just do your homework first.

Making the move

Lori Karpman

Having been both a legal practitioner, a franchisor and a master franchisee in Quebec, I have gained a unique perspective on franchising in the province. At a convention a few years back, I was explaining to a successful franchisor how the Quebec market was ripe for her service and asked why she did not expand into the province. She replied, “Quebec? That’s like going to Mars!” Her words stunned me. I believe Quebec is a ‘distinct’ society, but Martians? True, several franchises have come to Quebec

Page 34

To capitalize on the Quebec market, you must first be willing to make the investment, both in dollars and manpower. One obvious obstacle is the French language, which seems to strike fear in many hearts and pocketbooks of senior management. Since French is the official language of Quebec, it must be predominant, even in bilingual materials. Simply stated, language laws require all documents, including the franchise agreement, operations manual, marketing materials and other papers used in the course of business, be translated into French. This is a one-time start-up cost of doing business. While it is expensive, the investment is generally recuperated from initial franchise fees over time.

When to translate? Some wait until they sell a franchise to proceed, but it may be a good idea to translate material before selling. This

shows prospective franchisees you have already made the investment and are committed to doing business in Quebec. Language laws mostly significantly affect marketing and product packaging—while English is not prohibited, French descriptions, directions and ingredients must be predominant. In this global economy, it is becoming more and more common for suppliers to take care of this for you. However, if it has not been taken care, simple solutions such as stickers or package inserts also do the trick. The task is not as difficult as it sounds, but it does require planning and organization. As for signage, it is best to come up with a French version of your Trade Name as this really shows a commitment to the Province. All trademarked names and logos can be used even in English, but the French must be predominant.

Quebec-based representation Failing to work with local professionals is the number one reason franchisors fail when they come to Quebec. Many franchises expand into the province with a tremendously successful marketing strategy from other provinces/states, only to find results are not as successful as anticipated. One way to have local representation is to set up a small regional office with a franchising director

Canadian Franchise Magazine

NESS IN QUEBEC

or regional manager. This establishes a presence in the market, which can be used for meetings and corporate visits. It is also cost-efficient and provides a sense of professionalism and permanence, reassuring to prospective franchisees. The representative should be a mid-level manager with franchising experience. Alternatively, there are franchise consultants who work based on a project fee or retainer basis and brokers who work on commission.

Entering the market Quebec has a vibrant franchise industry with more than 100 homegrown franchise systems, with many managing some 100 units. There are several methods for entering into Quebec: • Master franchise agreement. Essentially, a franchisee becomes you in Quebec, selling and providing all services to franchisees, which you normally offer to other provinces/ states. • Area development. One or many agreements are made and an individual or corporation who is granted several years in which to establish a predetermined number of units in a defined territory. This agreement, with a solid candidate who has both general business experience and the financial

“Quebec has a vibrant franchise industry with more than 100 homegrown franchise systems, with many managing some 100 units.” capacity, is an excellent method to adopt; • Joint ventures. This approach, where the franchisor and Quebec franchisee are partners in a venture for Quebec development, is becoming more popular; and • Traditional development of selling

individual units. Before you sell any franchises, it may be a good idea to operate a corporate store for at least six months to a year. To many, this step is optional. I believe if you are going to do business in Quebec, you should fully understand the market to gauge qualities of an ideal franchisee.

Page 35

FR A NCH ISO R I N DUST RY A DV ICE

Lori Karpman | President | Lori Karpman & Company

Remember, what makes a good franchisee in another area may not be suitable in Quebec. As information from surveys and graphs can be limited, without local representation, and preferably a corporate store, there is no way of truly assessing the likelihood of your franchisees’ success.

Quebec legislation When entering a new legal jurisdiction, make sure to review and fully understand the legislation governing the industry and the rules or regulations affecting your operations. In Quebec, there is no franchise legislation per se, so you do not have to provide a disclosure document. However, most franchisors do provide it as a goodwill gesture and because it answers most questions franchisees have. If you decide to offer it, translating it beforehand is a sign of goodwill and will save time and money in the end. A vital piece of advice here: if you do provide a disclosure document, do not sign it. Otherwise, you will be bound by it—and why create a legal obligation that can come back to haunt you? In Quebec, you are merely providing it for information purposes only.

Page 36

“Generally speaking, Quebecers welcome and are open to new concepts. Success will depend largely on ensuring franchisees have a local voice representing the needs of the market to an out-of-province head office.” Unlike other provinces, all legal matters dealing with business and personal relations, including franchise legislation and rules of conduct, are set out in the Civil Code of Quebec. Provinces without a code have legislation in specific areas and govern via case law (i.e. how the courts have decided similar cases in the past). In Quebec, the Code sets all guiding principles and remedies and how case law interprets it. The Code’s governing principle states: all relationships must be conducted in good faith and in the spirit of fair dealing, regardless of whether this provision is in the contract or not.

The beauty of the Quebec market is that Quebecers are more loyal to brands and less price sensitive than in any other Province. So those brands that do make the effort will be handsomely rewarded.

In industries such as pharmaceutical retailing, opticians, travel agencies and real estate brokers, Quebec has specific legislation.

Lori Karpman is President of Lori Karpman & Company - A fullservice firm providing a full range of consulting and legal services.

Remember, when entering into any Canadian province, your business model or franchise documentation may have to be amended prior to entering the market.

Generally speaking, Quebecers welcome and are open to new concepts. Success will depend largely on ensuring franchisees have a local voice representing the needs of the market to an out-of-province head office. There is certainly enough expertise in Quebec to ensure franchisor entry is smooth and well-executed. Quebec is worth courting—after all, they do not call it La Belle Province for nothing!

For more information contact Lori at: (514) 481-2722 lori@lorikarpman.com www.lorikarpman.com

Excellent for branding and recognition.

INTRODUCING OUR NEW A-Z LISTING SECTION!

Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!

Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.

To learn about the A-Z directory or any other products, please contact Kimberly Kutnick: kimberlyk@cbgpublishing.com or 847-607-8407.

baskin robbins

Baskin-Robbins was founded in 1945 by two ice cream enthusiasts whose passion led to the creation of more than 1,200 ice cream flavors and a wide variety of delicious treats. In 2013, more than 13 million ice cream cakes were sold in Baskin-Robbins shops worldwide. Headquartered in Canton, Mass., BaskinRobbins is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies. For further information, visit www.BaskinRobbins.com.

Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 36th annual Franchise 500® ranking in 2014, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. BaskinRobbins creates and markets innovative, premium hard scoop ice cream and soft serve, custom ice cream cakes and a full range of beverages, providing quality and value to consumers at more than 7,500 retail shops in nearly 50 countries.

Dickinson Wright Our franchise and distribution law lawyers are some of the most widely published and most respected practitioners in the world and have decades of experience representing a broad spectrum of businesses, from start-ups to multinational and multi-brand enterprises, in a vast range of industries. With access to Dickinson Wright’s full scope of capabilities, we support our clients in their every need, including: • Creating domestic and international franchise and distribution networks • Preparation of disclosure documents and materials • Drafting and negotiating franchise and distribution agreements, including unit, area, development, master and international agreements

Fired – Up Pizza Fired – Up Pizza is a mobile fired pizzieria that offers fresh made thin crust wood fired pizzas, Calzones, fired pies and fired dogs that will guarantee to satisfy appetites for something different. Fired up Pizz Inc has developed and owns a unique propriety franchise system relating to the establishment, development and operations of a mobile restaurant trailer, specializing in the sale of wood fire pizza, Calzones, Fired dog and Fired pies that are prepared using the best ingredients

Freshii Eat. Energize. That’s the Freshii mantra. Freshii is a health-casual restaurant concept that serves fresh food designed to energize people on the go. With a diverse and completely customizable menu of breakfast, soups, salads, wraps, bowls, burritos, frozen yogurt, juices and smoothies served in an eco-friendly environment, Freshii caters to every dietary preference and type of taste buds. Freshii will operate 200 units by the end of 2015

franchise & services directory

CANADIAN FRANCHISE

www.canadianfranchisemagazine.com

To learn more about franchising opportunities, visit www.baskinrobbinsfranchising.com

• Drafting and negotiating licence and dealer agreements • Litigation and alternative dispute resolution • Marketing, advertising, promotions and contests • E-commerce • Regulatory compliance, with particular emphasis on franchise disclosure laws, product licensing and competition law • Protecting trademark and other intellectual property rights • Purchase and sale of individual units or complete systems • Leasing and real estate acquisition • Corporate and personal tax planning • Corporate and business law • Employment and labour law Phone: 416-646-3842

available and cooked using a wood fired oven. The Franchisor will train new Franchisees uniformily to its high standards of quality and service. Seasonal business 7-12 months depending on area – Easy to learn system Turn- key operation within 48 hours of concession trailer delivery – Strong GPM – Estimated ROI 1.5 -2 Years. For more information Tel: 866 746 6999 or email rob@firedup-pizza.com www.firedup-pizza.com

in 80+ cities and 15 countries, opening 2 new restaurants every week. Guests can visit Freshii anywhere from Toronto, Miami, Chicago and Houston to Bogota, Dubai, Stockholm, and Dublin. Freshii restaurants are found in all types of locations from cosmopolitan cities, malls, college campuses, suburb neighborhoods, fitness clubs, airports and small towns. Find the nearest Freshii: http://www.freshii.com. Keep in touch with Freshii on Facebook: https:// www.facebook.com/freshii. Follow Freshii on Twitter and Instagram: @freshii.

Page 37

franchise & services directory

The Interface Financial Group – IFG 50/50 The Interface Financial Group – IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small and medium-sized businesses by purchasing current, quality invoices at a discount, thus accelerating the client’s cash flow and growth. All transactions are syndicated 50/50 with the franchisee and the franchisor, and that means less working capital required to fund transaction: IFG does the bulk of the due diligence and the ‘paperwork’ for the transactions, and IFG 50/50 franchisees will concentrate their efforts on building the referral relationships – they do the ‘people work’.

Our franchisees are excellent communicators, relationship builders with decision-making and problem-solving skills, and much more sales & marketing oriented.IFG has been in the ‘invoice discounting’ business since 1972, and employs its franchise network around the world.

Key advantages of being an IFG 50/50 franchisee include:

www.interfacefinancial.com

Liberty tax service

Liberty Tax is a company to watch, not just in tax preparation franchise terms, but in the business world as a whole. Our corporate team, Area Developers, and franchisees are accessible and down-to-earth. We provide a supportive network and a culture that is progressive and fun.

Founded in 1997 by CEO John T. Hewitt, Liberty Tax Service is the fastest-growing tax preparation franchise in the industry and has prepared almost 18 million income tax returns in more than 4,400 offices and online. Liberty balances strong growth, best business practices, social responsibility, and a fulfilling life experience for our franchisees. We’re committed to creating a business system and environment that will be held up as the model for all other tax preparation franchises to emulate.

You can join one of the top franchise opportunities in the world. Just fill out our request franchise information form to find out more about Liberty Tax. www.libertytaxfranchise.com/request-franchiseinformation.html

CANADIAN FRANCHISE

Excellent for branding and recognition.

INTRODUCING OUR NEW A-Z LISTING SECTION!

Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or AD!

Making an appearance every issue in Canadian FranchisE magazine, each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.

To learn about the A-Z directory or any other products, please contact Kimberly Kutnick: kimberlyk@cbgpublishing.com or 847-607-8407.

Little Caesars

marketing programs. Franchisees continue to receive support, expert analysis and consultation from corporate as their business grows.

Little Caesars offers strong franchisee candidates opportunities in select locations across the country. We provide candidates an opportunity for independence with a proven system, a simple operating model and strong national brand recognition. Franchisees benefit from a comprehensive training program that focuses on all aspects of the business, including training, architectural and construction services to help with design, preferred lenders to assist with financing, the ongoing research and development of new products, and effective

massage addict Massage Addict is the country’s largest and fastest growing provider of massage therapy services, with over 40 clinics across Canada. Massage Addict is a proven business concept serving a gap in the market by helping Canadians improve their health through affordable, convenient massage therapy without sacrificing quality or service. Clients love the quality of Massage Addict’s Registered Massage Therapists and our franchise partners love the business model. • Low investment and start-up costs • Recurring revenue and quick ROI

Page 38

• No staff to hire, fire, or manage • No storefront to own, lease, or maintain • No Inventory or stock to purchase • No extensive travel because IFG franchisees do business locally • Business-to-Business, professional environment with regular business hours of operation • Flexibility to relocate for part of the year or permanently and continue doing business

www.canadianfranchisemagazine.com

Little Caesars requires candidates desiring to open one store to have a net worth of $250,000 with a minimum of $100,000 in liquid, unencumbered assets (such as cash). Franchisees must also be able to obtain financing to cover the total costs of opening a franchised location. Contact: Angelee Brown, development manager Phone: 888-822-7981 Email: LCCfranchising@littlecaesars.ca Website: www.littlecaesars.ca

• Approximately 80% of treatments are paid by insurance • Opportunity for multi-clinic ownership • Straightforward clinic operations • 100% Canadian owned and operated Massage Addict is the right industry, the right business model, the right brand and most importantly it’s the right time. Call today. Phone: 1-855-852-6108 Email: info@massageaddict.ca Website: www.massageaddict.ca

Signarama is the largest sign franchise in the world, standing as the leading innovator in the industry. Signarama was also named #1 sign franchise by Entrepreneur magazine for 2014. Signarama is the best in the business and will start you off with all of the tools that you need to succeed. Our local Signarama stores serve brand building and visibility experts in their local business communities. They don’t just sell signs...just about anyone can do that! Our stores deliver multiple products and services as part of solutions for businesses to increase customers and build brand awareness. Each of our stores is individually owned and operated by highly trained experts who serve their local community. Although signs can be found everywhere, we operate on a new concept that’s unique to our stores. We combine signs with a full

skedaddle Skedaddle Humane Wildlife Control has been Canada’s leader and pioneer in the area of urban wildlife control for over 25 years, helping home and business owners remove and exclude wildlife from their property in an effective and humane manner. As cities, towns and suburbs continue to expand the need for value-added wildlife management will continue to grow. Skedaddle’s proven three step approach includes humanely removing the wildlife, repairing the damage and securing the home against future intrusion. This ensures a customized and complete solution for customers at a premium price point. Skedaddle Humane Wildlife Control is the latest brand to join That Franchise Group who manage a portfolio of six home service franchises with over 400 locations across North America. With this strong backing, Skedaddle has aggressive growth plans to

The Garage Door Depot® The Garage Door Depot is Canada’s largest and only coast to coast garage door supply, service and installation company, headquartered in Port Coquitlam, British Columbia with franchises across Canada. ®

The Garage Door Depot is committed to providing Canadian Consumers, Business customers, Builders, Garage Door Dealers and its Garage Door Depot Franchise partners with a one-stop

The Seasons Art Class The Seasons Art Class is an adult art class franchise providing art classes one day per week. This is a great opportunity, low investment, no inventory, not need to rent a location. Great for part-time or as an added revenue stream. Our business has been in operation since 2009 and is the original provider of these inspired courses.

portfolio of branding options that result in a customized advertising solution for your clients’ businesses. A Signarama franchise is a solid business model that works to give back to businesses in the local community. Signarama is a proven business. We have the operational systems and processes in place to help our printing franchise owners succeed in today’s competitive business landscape. Our team of leaders and administrators will help you to get up-to-speed on all requirements and procedures for running the business, as well as provide on-going support and training to ensure that your printing franchise has reached its full potential. Contact: Anas Saltaji Phone: (905)281-8000 Email: info@Signarama.ca Website: www.Signarama.ca

spread its footprint across Canada in the coming years. Skedaddle Humane Wildlife Control is a community based business that currently provides profitable and rewarding service in 22 locations throughout Ontario, Quebec and Nova Scotia. No prior experience is required to get out from behind your desk and become your own boss today. Key Benefits Include - high demand - low competition - cash business - limited accounts receivable - few employees - minimal supplies and equipment required - rapidly profitable - home based business - low start up costs - excellent head office support - environmentally friendly and socially responsible services For more information about this exciting opportunity: Website: http://www.skedaddlefranchise.com/

destination to provide for all their residential and commercial overhead door and related product/ service needs. CFA Franchisees Choice 2014 CFA Franchisees Choice 2015 Contact: Dean Carman Phone: 604-526-1086 or 1-888-698-3667 Fax: 604-526-1087 Email: franchise@garagedoordepot.ca Website: www.garagedoordepot.ca

The system has proven so successful that it has been expanded throughout Europe, North America and Australasia with many, very happy Franchisees and countless students. With well over 125 successful franchises already in operation right throughout the UK (and growing), we’re now offering the opportunity for you to be part of this successful group and run your own business in your area.

There have been many imitators in that time but none have managed to match the comprehensive process and systems that we formulated and continue to improve on year after year.

Using our proven business systems, you have the potential to earn a full-time wage for part-time hours! For more information contact Mike Curry email: theseasonsartclass@yahoo.co.uk

Topper’s pizza

We’ve learned from our successes and we know what works and what doesn’t.

Proven, tested, tried and true systems are among the biggest advantages to franchising versus starting your own business from scratch. With Topper’s Pizza, you’re benefiting from nearly 30 years of successful franchise systems. During that time we have invested and reinvested in all of our operations – from our P.O.S. systems, to training policies, to marketing, to research and development… and the list goes on.

franchise & services directory

Signarama

What does it mean for you? It means you get to hit the ground running with years of knowledge and experience. It means you don’t have to worry about getting all of these systems in place—you get to do what you signed up to do: operate your business and achieve your personal goals. Let the delicious pizza, our Customer-Centric Culture and successful structure take care of the rest. www.toppersfranchise.ca

Page 39

Page 40

F R A N C H IS E

nition. nding and recog Excellent for bra or simply add ge cka pa nth 6 mo OR Choose a 12 or #53 02/&),% &/ UR YO NTO Y O THE ! : DIRECTOR AD ! ry or any other the A-Z directo To learn about berly Kutnick: Kim ct nta co products, please M OR CO ING LISH UB GP KIMBERLYK CB com ne. azi ag em his franc ww w.canadian

A-Z LISTING SECTION! CANADIAN FR

ANCHISE

TING INTRO SECTION! ue in Canadian arance every iss A-Z Making an appe detailed, 4 color ch ea e, zin ga your FranchisE ma rd write up and wo 0 15 a h wit listing comes NEW A-Z LIS DUCING OUR

D IR E C T O R Y & S E R V IC E S

logo.

BASKIN ROBB

INS

frozen dessert ice cream and Named the top Entrepreneur ited States by Un the g in e his franc e 50 0Â® rankin his nc Fra al th annu maga zineâ&#x20AC;&#x2122;s 36 rldâ&#x20AC;&#x2122;s largest wo the is s bin ob in 2014, Baskin-R ps. Baskinam specialt y sho mium chain of ice cre ts innovative, pre rke ma d an s stom Robbins create d sof t ser ve, cu an am cre ice hard scoop of beverages, and a full range ice cream cakes mers at more value to consu d an y alit qu untries. providing co 50 arly ne shops in than 7,500 retail

DICKINSON W

RIGHT

in 1945 by two s was founded Baskin-Robbin ssion led to siasts whose pa ice cream enthu ice cream 00 1,2 n tha re mo the creation of ous treats. e variety of delici am cakes flavors and a wid 13 million ice cre n tha re mo , In 2013 ps worldwide. skin-Robbins sho Ba in ld so re we , Baskinin Canton, Mass. Inc. Headquartered Brands Group, nâ&#x20AC;&#x2122; nki Du the of For fur ther Robbins is part of companies. ily fam ) KN DN (Nasdaq: obbins.com. it ww w.BaskinR information, vis es, ing opportuniti his nc fra t ou ab To learn more franchising.com ins bb inro ask visit ww w.b

some of the law law yers are and distribution ctitioners Our franchise st respected pra lished and mo representing nce erie most widely pub exp decades of e hav to multiand ps ld in the wor , from start-u m of businesses ge of s, in a vast ran a broad spectru rand enterprise lti-b scope mu full â&#x20AC;&#x2122;s and l ght nationa kinson Wri d, h access to Dic in their every nee industries. Wit nts clie our t we suppor , ities abil cap of AND including: TIONAL FRANCHISE ESTIC AND INTERNA s #REATING DOM wor ks D MATERIALS distribution net S AN ENT CUM DO F DISCLOSURE TRIBUTION s 0REPARATION O NCHISE AND DIS master and NEGOTIATING FRA s $RAFTING AND a, development, uding unit, are agreements, incl s ent eem agr al internation

DRIVERSE AT

REEME AND DEALER AG EGOTIATING LICENCE TION s $RAFTING AND N TIVE DISPUTE RESOLU RNA ALTE ND N A STS s ,ITIGATIO OTIONS AND CONTE VER TISING PROM s -ARKETING AD

ur service, vehicle chauffe Driverseat is a rvices under se g vin dri l na sio offering profes iving, Assisted Dr ted na sig De 4 categories, d Vehicle rt Chauffeur, an Transport, Airpo ur. Chauffe h Coachmen es its clients wit Driverseat provid ve them somewhere in dri r he eit (drivers) to their vehicle le, or to relocate their own vehic m. the for low cost, low Driverseat is a ess model, As a franchise, portunit y busin op h hig n, eve break

NTS

SIS s % COMMERCE ARTICULAR EMPHA MPLIANCE WITH P and s 2EGULATORY CO duct licensing losure laws, pro on franchise disc

ERTY RIGHTS competition law R INTELLECTUAL PROP DEMARK AND OTHE TEMS s 0ROTECTING TRA S OR COMPLETE SYS UNIT UAL IVID IND SALE OF s 0URCHASE AND CQUISITION E A STAT AL E s ,EASING AND RE NING PERSONAL TAX PLAN s #OR PORATE AND BUSINESS LAW s #OR PORATE AND ND LABOUR LAW s %MPLOYMENT A 0HONE

home offices ees work from where franchis al sales and loc rily on the and focus prima tensive 5 We offer an ex . ns aig mp ca ge marketing bile app to mana mo a m, gra day training pro cant ongoing nifi sig d an s, ce the on-call servi nchise our team of Fra support through s. tor uc Cond Ba zely Contact: Brian E ON 0H rseatcanada.com Email: info @drive rseatcanada.com rive w.d ww Website:

Making an appearance every issue in Canadian Franchise magazine.

Each detailed, 4 color A-Z listing comes with a 150 word write up and your logo. Excellent for branding and recognition.

od fired oven. oked using a wo available and co hisees nc Fra w ne in will tra The Franchisor of qualit y and high standards uniformily to its 2 months nal business 7-1 ser vice. Seaso to learn system sy Ea â&#x20AC;&#x201C; a are NCESSION depending on HOURS OF CO THIN WI TION ERA 4URN KEY OP TIMATED 2/) TRONG '0- n %S TRAILER DELIVERY n 3 . ars 1.5 -2 Ye ation For more inform OR 4EL up-pizza.com email rob @fired zza.com ww w.firedup-pi

Choose a 12 or 6 month package or simply add the ZZ A FIRED â&#x20AC;&#x201C; UP PI RIA THAT PIZ ZIE A-Z directory onto your FOCUS, PROFILE or ad! D lRE ILE OB zas, 5P 0IZZA IS A M &IRED n od fired piz de thin crust wo l offers fresh ma d dogs that wil fire d an s pie d mething Calzones, fire appetites for so isfy sat to e guarante dif ferent. AND OWNS A HAS DEVELOPED relating to the &IRED UP 0IZZ )NC franchise system ety pri pro e uniqu operations of a d an nt me op devel establishment, zing in the sale t trailer, speciali and Fired mobile restauran nes, Fired dog lzo Ca za, piz ingredients of wood fire using the best red pa pre are t pies tha

To learn about the A-Z directory or any other products, please contact Vikki Bradbury: vikki@cgbpublishing.com

Canadian Franchise Magazine

Articles inside

Part-Time Business Full-Time Income