FranchisingFeature children’s products
august 2018
The Three C’S of Successful Franchising Securing Meaningful Brand Partnerships
Growing a Robust Business
with a Child-Oriented Model
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what’s new!
The Goddard School Celebrates 30 Years of Continued Growth
Goddard Systems, Inc. (GSI), franchisor of The Goddard School, the nation’s premier preschool system focusing on learning through play for children six weeks to six years old, is celebrating 30 years of continued growth. The Goddard School uses the most current, academically endorsed methods to ensure that children have fun while learning the skills they need for long-term success in school and in life. The institution serves more than 65,000 students in more than 480 Goddard Schools in 36 states, and is poised to open its 500th School later this year. Founded by Lois Goddard Haines in 1983, Goddard was bought and franchised in 1988 by Joe Scandone and Anthony Martino, the mechanic and entrepreneur behind the auto parts and services franchises Aamco, Maaco and Sparks. The Goddard School remains a leader in both early childhood education and the franchise space since it opened its first school 30 years ago. Over the past three decades, the company has demonstrated a track record for success and is a model for responsible, sustained growth.
Since The Goddard School began franchising, the concept of early childhood care has changed, now with a greater emphasis on the educational development of children younger than age 5. Over the last 30 years it has become increasingly evident that from birth to age 3 is one of the most vital timelines to engage a child’s brain and help them learn. For more information, visit www.goddardschool.com.
Soaring College Tuition, Competition, Drives Big Demand for College Franchise The competition and cost of getting into a good college has never been tougher, and one company is rapidly expanding to help students become more attractive to each college on their wish list, and how to afford the costs.
Class 101 is a national franchise that helps high school students get into better colleges and qualify for more scholarships and financial aid. Because the application process has become so
complicated, many students who get little or no help often end up at the wrong school, the company has found.
Class 101 almost doubled in size in 2017 and is continuing
to expand into a strong national network to keep up with this
demand. With each new opening the company moves closer to its 2020 goal of 100 franchises.
“Our franchisees have diverse backgrounds — former teachers,
coaches and youth pastors,” says Tom Pabin, Founder and CEO, who launched the business 20 years ago.
“The need for college planning services continues to grow, as does the price tag of public and private college tuition. We know all
the ins and outs of applying for scholarships and how to groom
students to be more attractive when they start looking at schools and tuition aid.”
For more information, visit class101franchise.com.
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The Little Gym International Celebrates 400th Location World’s Premier Children’s Enrichment Franchise Opens Milestone Gym in Waco, Texas The Little Gym International, the world’s premier children’s enrichment and development franchise that offers movement-based learning and imaginative play for children ages four months through 12 years, announces the opening of its milestone 400th location today in Waco, Texas. Since opening the first The Little Gym in 1976, the children’s franchise continues to deliver on its promise of Serious Fun and serving as a springboard to life’s adventures. “It’s incredibly fulfilling to see families
benefit from our programs while our franchisees achieve their dreams,” said Alex Bingham, President and CEO of The Little Gym International. “In the 26 years since The Little Gym began franchising, we have experienced plenty of joys and challenges that come with building an iconic brand. With the opening of our 400th location, we feel exceptionally rewarded and humbled that our concept is embraced the world over.” An innovative educator, musician and kinesiologist, The Little Gym Founder Robin Wes envisioned a nurturing place where children could explore their
physical development while also growing socially, emotionally and intellectually. He opened the first The Little Gym in 1976 in Bellevue, Washington, and infused those early classes with the same positive, noncompetitive spirit that characterizes The Little Gym today. Today, The Little Gym International operates in 400 locations in 32 countries, including the U.S., Canada, China, the United Kingdom, Australia and more. For more information on The Little Gym, please visit www.TheLittleGym.com.
Club Z! Tutoring of Lakewood Ranch, FL Opens for Business
test scores, because we create customized
Offering Free Tutoring and Test Prep to Local Families Now through August 31, 2018
we also have several enrichment programs,
Local families are encouraged to like and follow the Club Z! Tutoring of Lakewood Ranch Facebook page to participate in all of its grand opening special offers and promotions, or call (941) 894-1229 to register.
Club Z! Tutoring of Lakewood Ranch, FL, proudly serving families in Lakewood Ranch, Bradenton and Sarasota, is celebrating its official grand opening with special offers, including FREE SAT or ACT test preparation services and FREE homework help.
Club Z! is the nation’s largest in-home and online tutoring and test prep organization, with more than 450 offices in North America. Club Z! Tutoring of Lakewood Ranch is owned and operated by Mr. Jim Moletto, an experienced corporate manager: “At Club Z!, our tutoring programs are extremely effective in raising grades and
learning plans based on each child’s
specific needs and goals, and we follow the same curriculum as our local schools. But from SAT and ACT test prep to study
skills development, or even learning a foreign language.”
To celebrate its official grand opening, Club Z! Tutoring of Lakewood Ranch is offering local families free online
homework help, and free SAT and ACT
test prep services, now through August 31, 2018.
Families are encouraged to like and
follow Club Z! of Lakewood Ranch @
ClubZLakewoodRanch or call (941) 894-
1229 to take advantage of the free tutoring and test prep, as well as all of the other exciting grand opening promotions. clubzfranchise.com
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what’s new!
British Swim School Continues Nationwide Expansion with Opening of New Location in Indiana
British Swim School, the franchise concept best known for its education of water safety as an essential survival skill amongst a fun and gentle environment, continues its expansion
nationwide with the entrance to its 21 state – Indiana! For over 35 years, the brand has been dedicated to teaching water survival skills to children as young as three months old.
Headquartered in Ft. Lauderdale, FL, British Swim School currently operates out of nearly 200 schools nationally, and is developing an international presence with locations in Turkey and Canada. The brand’s introduction to Indiana comes by way of Carmel, where it will operate out of a SpringHill Suites hotel. The Indianapolis location will be run by first time franchisees, and husband and wife duo Katie and Greg Blair – who immersed themselves in the brand after searching for programs to enroll their three-year-old son. CEO Rita Goldberg founded British Swim School in 1981 and developed the unique and highly effective teaching methods that are a recognized trademark of 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. They hold nearly 15,000 lessons per week nationally, and conducted nearly 600,000 swimming lessons in 2017. For more information, visit www.britishswimschool.com.
Golden Gate Capital Acquires The Learning Experience, a National Franchise and Academy of Early Education Golden Gate Capital, a leading private equity investment firm, has acquired The Learning Experience, one of the nation’s largest and fastest-growing academies of early education for children 6 weeks to 6 years old. The Learning Experience, headquartered in Deerfield Beach, Florida, is led by Co-Founder, Chairman, and Chief Executive Officer Richard Weissman. Offering state-of-the-art facilities and a proprietary curriculum, for nearly 20 years, The Learning Experience has provided the foundation necessary for children to succeed in preschool, kindergarten, and beyond. Additionally, Weissman successfully pioneered a
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franchise model to expand The Learning Experience to more than 300 companyowned and franchise centers operating or under development across 22 states, with plans to open its first international location in the United Kingdom. The Learning Experience has generated double-digit annual growth for the past 15 years. “Golden Gate Capital is fully committed to our curriculum and vision, with an excellent track record of accelerating the growth of multi-unit consumer companies,” said Weissman. “This is a transformational moment for The Learning Experience and the children and families we support, and we are thrilled to partner with Golden Gate as we work
together to build on our momentum and provide a foundation for even more children to learn, play, and grow.” Josh Cohen, Managing Director at Golden Gate Capital, said, “We are excited to partner with Richard, his leadership team, and the company’s franchisees to accelerate their growth plans domestically and internationally in the growing early childhood education market.” For more information, please visit www.thelearningexperience.com.
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If you would like to showcase your franchise in this popular feature, contact Vikki Bradbury at: Phone: 778 426 2446 Email: vikki@cgbpublishing.com
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A separate entity that falls directly underneath children’s products is the baby market. A whole other business that generates profit and has a variety of products as well as services, available to those interested in such a franchise.
of Children have a lot e buying power in th y. American econom Once off the radar of producers and n businesses, childre ant are now an import ic part of the econom an makeup in Americ society.
th phones and Kids are loaded wi rmation that computers and info ny means of exposes them to ma well as information advertisement, as they want and why telling them what diately. they need it imme out any financial Even children with st influence of income have the mo e in spending, their parent’s choic ge source of making them a hu income. heres specifically A franchise that ad r of kids are those to the buying powe ildren’s products that specialize in ch exclusively.
The downfall to children’s products and services can be the constant turnaround and fickle needs of such consumers. A franchise would need to be backed by researchers and supporters that keep themselves engaged in the younger generations and consistently turning out product that adheres to such needs. Before investing in such a particular franchise, it would be wise to research marketing plans, future revenue predictions and whether or not there is a research team or a product team that is invested in the up and coming fads of children because these products needs and wants come and go by quickly. From Rubik cubes, to slinkies, to shopkins and fidget spinners: a lot of children’s needs and wants and fast and fleeting. You’d want a business that can keep up. • Is this franchise producing different products every year? • What brands are associated with such a franchise? • Where do they get their ideas and how can they insure there will be a constant turn over? • Does this franchise have a product that is timeless and crosses gender lines? • Does the franchise specialize in a service that will always be in need or can change to the desires of the next generation? These are a few of the questions that a franchisee would as a franchisor before starting a children’s products and services franchise.
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“Baby products have become popular in downtown street corners, dominating the organic and environmentally-friendly sector of the baby market.” Children’s Services A profitable franchise market is that of children’s services. Both parents are busy and time is precious, and a lot of families pay for convenience. There is also pressure to have children excel to the highest standard of all abilities, which in turn creates more and more service options that generate more money.
Baby Products It may be assumed that the baby market is not only small in product but small in profit. It oddly could not be further from the case. New parents want to invest in the best for products and services for their children on all levels. The baby market has become larger through education and information. Safety protocols has opened up the doors for new and improved baby products: car seats that have to be replaced, cribs with a specific criteria, fire resistant clothing, PVC free bottles. There are constant warnings and guidelines for parents to follow that generate a larger scale of purchasing that is never ending.
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Children have become a constant expense due to expiry dates and safety updates. Plus all the toiletry products that are
exclusive to baby. Even though it’s a niche market, global baby market revenues are expected to continually rise.
A small competitor in the baby market is the small business owner. Baby products have become popular in downtown
street corners, dominating the organic
and environmentally-friendly sector of the baby market. It would be wise to
do a quick surveillance of the location to understand the products of smaller competitors and how many are in
the territory and area a franchisee is considering.
One of the most popular service franchises for children is in the area tutoring. According to a 2004 estimate, The American public purchases between $8-10 billion of tutoring services annually. Of course there is a better understanding of the variety of learning disabilities, and a lot of the times parents need to seek guidance outside of school grounds to better assist their children academically. Franchisees who are interested in invested in an educational service to children, could find a passion in tutoring. There are a lot of franchise options within this niche, that specializes in different learning challenges, or focuses on a certain age group. Some tutor franchises also have after school care and other related programs. A look at insurance and safety protocols would give an understanding of how many constraints a franchisees would have in the business.
There could also be a franchise that has an ongoing stable service that’s open to the public all day all.
“A newer interest in children’s services includes recreational activities and birthday party services, including camps, sports groups and simple entertainment.” Children’s services extend beyond tutoring, such as child care, which usually focuses on the younger age group. Most of these facilities have a lot of criteria including insurance and safety protocol - which will be easily provided by the franchisor. However, a well researched overview of each childcare franchise would be well recommended and a decision based on personal criteria would be suggested. Also, it would be wise to ask the support system of each franchisor of all their rules and regulations and knowledge of state criteria, before investing.
A newer interest in children’s services includes recreational activities and birthday party services, including camps, sports groups and simple entertainment. Parents now rent out a specific service, which could be mobile, to celebrate their child’s birthday in a unique and special way. The fun thing about children’s services is the varied and amusing choices a franchisee has in this specific criteria. If you have a passion in wildlife there is likely a franchise that has such a business that caters to children’s parties.
The franchise market for children and babies may appear specific and small, but it actually covers a huge range of services and products. The downfall would be the great amount of research that it would take to narrow down a franchise that suits your personal needs and passions. Though there would not be much involvement from the franchisee, for those interested in changing lives and helping children, there is a lot of opportunity to be a part of that process. Those with a background in children’s services would easily adjust to becoming a franchisee in this area, but no background experience is necessary. The benefit of a franchise is not only the brand name and reputation, but there is a home office that provides support, as well as information and education. A lot of children’s products and services require a lot of insurance and legal protocol, which would be another reason to consider a franchise. It keeps investors safe and makes for a conscious investment. For those with a whimsical passion and a desire to work with children, a franchise would allow for a carefree approach to a profitable business. ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism
Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in
communications, focusing on social media. She currently works as a community information
officer with Epilepsy Society, while pursuing her writing career at the same time.
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Expert Advice: Bette Fetter, CEO, Young Rembrandts
Growing a Robust Business
with a ChildOriented Model To say the child enrichment industry has grown over the past several decades is an understatement – 30 years ago, when I founded my business, the industry didn’t even exist.
to highlight the strength of your business, whether you offer after-school art classes, sports activities or other enrichment programs.
Respect Your Competition / Embrace Your Competition
Other franchises, as well as mom-and-pop business, have since emerged to fill the field, and there are now a variety of brands offering enrichment programs for parents seeking after-school activities for their children.
The most common challenge we face as a child-oriented business is dealing with the true competition – time! There’s only 24 hours in a day and students only have a set amount of time to participate in whatever sports, academics, arts or other enrichment programs that are offered after school in their communities. That’s why Young Rembrandts offers a high quality and effective class for our students while saving parents time with a hassle free set up – classes are right after school.
I’ve found that the key to differentiating a product or service in this burgeoning industry is leveraging the inherent characteristics within a child-oriented business model. You can use them as tools
It goes without saying that going above and beyond with marketing and technology will also give franchisees a leg up. We make it easy for schools to set up a class and parents to register. Our
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franchisees provide registration services, manage all classes, provided teachers and all the supplies, making it an easy hasslefree program for schools to offer and parents to register!
Know Your Market In any business, it’s important to know your local market inside and out. Depending on your business’s market, your target audience may be smaller than you think, and using a narrow marketing approach can be the most efficient use of resources. Over the past 30 years our business model has been fine-tuned so the marketing
“I’ve found that the key to differentiating a product or service in this burgeoning industry is leveraging the inherent characteristics within a child-oriented business model.”
something for kids that fulfilled a sense of special responsibility and bringing them something of value. Our franchisees are people who aren’t just looking for a casual way to get involved – they want a strong business, where they can make a very good living while doing good in the community and loving their job.
Leverage Technology As technologies evolve, our goal as a franchisor is to create efficiencies for franchisees so they can remain focused on their business without redundancies. Franchisees want to know the quickest, easiest way to use platforms and systems to drive sales. For parents, they are seeking convenient, streamlined processes so they can get the kids registered, have all the information necessary and get on with their day. I’ve found the best route with technology innovations and platform changes over the last 30 years is to see them as tools, not as replacements for the experience and curriculum we offer. The more we can share ways to use technology to train franchisees and support them in training their own staff, we’re able to free up time and resources for franchisees to focus on the growth of their business and spend time in their community and with their families!
Stay True to Quality “guesswork” is removed from the equation. We know our business and we know our audience – thus allowing franchisees to focus their resources through effective marketing channels.
Love What You Do – It’s Possible! Many owners in child-oriented businesses tend to be people who are interested in social entrepreneurship. We find many of our franchisees are motivated by the opportunity to do something fun and meaningful with kids that also offers a strong bottom line. For me, it was always about doing
In the modern age, there’s often pressure to experiment with trends in children’s enrichment or education, such as new technologies or social media. Ultimately, the most important tool in the history of my business has been to stay true to my core concept – how to serve the children. When you focus on the product and making sure kids really understand and absorb the material, the happier the customers (both parents and children) will be. Kids will always be kids, and are inherently similar on a developmental level across generations and cultures. They are hungry – they want to learn, they want to be successful. And parents talk – positive word-of-mouth as a result of a
Bette Fetter
“When you focus on the product and making sure kids really understand and absorb the material, the happier the customers (both parents and children) will be.” clear commitment to children’s wellness will grow your business’s reputation. I’ve prided myself on filling a gap in art education since the day I founded my business. I encourage other child-oriented models to keep focused on the kids at the heart of their business. I hope they’re able to look back in 30 years and feel the same satisfaction and pride I do. Bette Fetter is the Founder and CEO of Young Rembrandts. Bette founded Young Rembrandts in Elgin, IL in 1988. Celebrating its 30th anniversary this year, Young Rembrandts has become a recognized leader in art education, offering a curriculum focused on teaching children to draw, using demonstration and a structured step-bystep process. Young Rembrandts teaches more than 40,000 students ages 3 ½ to 12 years old each week in 31 states and four provinces. www.YoungRembrandtsFranchise.com
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Expert Advice: Steve Clemente, President of Primrose Schools
The Three Cs
of Successful Franchising mission, vision and values into everything you do is key. At Primrose Schools, our culture is built on a foundation of trusted relationships. From our National Leadership Support Team (NLST) to every school teacher and staff member across the country, we strive to recruit people who share our passion to deliver service excellence and positively impact the lives of children.
Steve Clemente
When it comes to effective franchising, people always want to know the secret to success. The answer is relatively simple – it’s consistent execution. But, it’s not always simple to execute. You must wholly commit to servant leadership – fully living your company’s culture, providing exceptional companywide support and continually engaging with the communities you serve.
Intentionally Activate Your Culture Continually infusing your organizational
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For example, we have a unique process in place that helps us identify the best Franchise Owners for our schools. In addition to reviewing a prospect’s financial capabilities, we also look for a connection to our mission and values. We compare the traits of our prospects with the characteristics embodied in our most successful Franchise Owners to discern if their values align with ours. At Primrose, we believe that who children become is as important as what they know – and this emphasis on character is critically important to the decisions we make. Ultimately, what we’re really looking for is a true connection with our brand and a strong fit for our culture. We’ve also launched an initiative to encourage our Franchise Owners to attract and retain top talent, because consistent service delivery is fundamentally important to our brand promise. For some companies, it’s difficult to retain culture as they evolve and grow, but it’s a priority for us at Primrose. If we can consistently cultivate a family of likeminded business owners who all share our
e t a r t o r p o r p o p C u S focus on excellence, then our culture will be palpable – whether you visit a school in the Northeast or California or any point in between.
Invest in Company-Wide Support Strong company-wide support is a critical investment for any franchise, and it will yield significant returns over time. Primrose supports its Franchise Owners in multiple ways. We offer extensive training before a school opens – including 92 hours of interactive classroom instruction, 34 hours of online
y n pa re m tu o C ul C
relationships. Maintaining an open dialogue is important for any organization, and we make communication a priority, even when the conversations are difficult. We share regular system-wide updates through a variety of channels, including our intranet, email updates, monthly newsletters, and webcasts. In all communications, we offer our perspective behind the news and how it relates to a Franchise Owner’s potential for success. But, communication is a two-way street, so we value the feedback we receive from staff members at all levels of our
ty t i unmen m it m m o C m Co coursework and 80 hours of onsite school training. All of this is in addition to six months of pre-opening support. We also have a dedicated National Leadership Support Team, which includes regional business, marketing and education consultants who guide Franchise Owners through the opportunities and challenges associated with starting a new business and supporting its continued growth. This level of commitment is there to stimulate and encourage a track record of success across the country. We also recognize that transparency is an important element for building trusted
organization. In fact, this is so important to me that I spent nearly my entire first year at Primrose traveling across the country to meet in person with our Franchise Owners, teachers and staff. These are the individuals who bring the brand to life – they have direct interaction with the customers — so their insights are essential. That’s why we encourage NLST members and school staff to submit questions and feedback. This focus on two-way communication demonstrates our appreciation and respect for what they do and helps strengthen their personal investment in our overall success.
Facilitate Community Engagement Finally, a hallmark of our company from the very beginning is to support and engage with the communities where we have a presence. That’s why we encourage our franchisees to give back in ways that are meaningful to them, their staff and their families. Our Primrose PromiseSM corporate social responsibility (CSR) program enables Franchise Owners to impact their communities in a variety of ways – from donating to local food banks and beautifying neighborhood parks to raising money for police stations and children’s charities. To ensure this CSR approach works across the entire Primrose system, we provide fundraising best practices, event toolkits, media relations support and other resources to assist Franchise Owners with their outreach. This culture of generosity and compassion is part of what Primrose students learn at an early age, and it’s very rewarding to see this philosophy play out across our organization. It’s enriching to see how this service positively touches the lives of not only those who benefit from these efforts, but also for the Primrose staff and families who make it possible. As franchise brands continue to grow and evolve, a commitment to culture, corporate support and community engagement can be what ultimately differentiates businesses in a crowded marketplace. Steve Clemente is the president of Primrose School Franchising Company, where he leads internal operations and partners with Jo Kirchner, CEO, on strategic growth initiatives. His entire career has focused on providing senior leadership and management in multi-unit businesses, including Dick’s Sporting Goods, the Nebraska Book Company and Target Stores. Steve holds a bachelor’s degree from the University of Central Florida and a master’s degree in business administration from Webster University. franchise.primroseschools.com
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Expert Advice: Christopher Conner, President of Franchise Marketing Systems
the right children’s product can make an excellent franchise Children’s businesses have been in a exponential growth curve over the past decade and don’t look to be slowing down any time soon. With more and more families being dual income and having even busier lives, people are dependent on services and products which help them manage the overload of responsibilities that come with parenthood. First, what constitutes a children’s product? Children’s products would be any product or offering that is aimed towards the children’s market segment. Children would typically be defined by kids age 15 or younger in most cases which means that the product or offering must be sold to the parents in order for a successful transaction to take place. Categories in the children’s product market would include Safety, Entertainment, Sports and Education while others might find their own unique micro-niche within these categories. All of these markets have experienced growth in franchising in general, but there are certain benefits to one category of children’s product franchises over others which will lend themselves to different skill set requirements from franchisees. Second, how do children’s product franchises typically work? Usually, the franchisor has created, designed or
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produces a proprietary product which they sell to consumers. Franchisees will invest in a franchise in order to have the right to sell the product or services which tie into that product offering. The brand is many times built around the product offering and revenue streams consist of both selling the product outright to consumers or selling complimentary services which support the value proposition of the product offering. For example, our firm, Franchise Marketing Systems, worked with a child safety franchise system years ago which had designed proprietary safety equipment and supplies which families could use to “Baby-Proof” their home or apartment for young children. In addition to the sale of the products, franchisees of this brand could sell consulting, design and other services which were offered to families to help them manage their home or workplace better and more efficiently for their children’s safety. Third, what can you do in order to choose the best children’s product franchise from an investment standpoint? First, look hard at the numbers. Great products don’t always translate to great numbers. Review the financial model and understand how the business works. Verify that there is consumer demand for the product and the franchisor has defined a franchise marketing system to sell the product offering consistently at a profit. Look hard at the margins. Product sales can many times have higher operating expenses with cost of goods sold; verify that after royalties, the franchisee can still make money with the children’s franchise
business. Verify that all channels of distribution have been wrapped into the franchise offering. What you want to avoid is a franchisor who is selling franchises and will also sell their product to no benefit of the franchisee through other channels like the Internet or catalogue sales. The territory description and protection defined in Item 12 of the FDD will clear up how this works. Finally, when evaluating children’s product franchises, understand what will be asked of you in order for the business to succeed and whether your personality fits. Education product franchises will typically require that the franchisee to some extent execute the education, classes or teaching that comes with the business model. If you don’t have the patience or willingness to work with children, probably not a good market to go into. In other market segments, such
“What can you do in order to choose the best children’s product franchise from an investment standpoint? First, look hard at the numbers. Great products don’t always translate to great numbers.” as entertainment, you will need to be energetic, love working with families and able to deal with the emotional swings that come with a children’s birthday party. On the other hand if you are selling a children’s safety product, you will need to embrace the value proposition, be willing an able to sell and understand how to convince concerned parents that your product offering will help their children be safer. All of these are examples of scenarios in children’s product franchises where if you don’t fully evaluate your ability to work in the business before you invest, you could be stepping into a business that just makes for a bad match. Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work. www.franchisemarketingsystems.com
“When evaluating children’s product franchises, understand what will be asked of you in order for the business to succeed and whether your personality fits.”
Chris Conner
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Expert Advice: Heather Anderson, Director of Marketing, The Little Gym International, Inc.
g n i r u c Se d n a r B l u f g n i Mean s p i h s r e n t r a P
Heather Anderson
Co-branding, when executed correctly, can be a powerful vehicle for generating brand awareness, building a franchise owner’s customer base, and ultimately boosting revenue. Franchising USA
The impact of a well-executed strategic partnership can also increase overall value –for the customer’s experience, the franchisee, and the franchisor. While creating strategic partnerships that deliver multi-layered value may seem like a daunting task, they’re extremely rewarding and provide benefits at both the corporate and franchisee-level. So, where do franchisors begin? Before diving into a brand partnership, here are a few things to keep in mind:
Be Strategic & Selective Think about the long-term benefits and purpose of a partnership, not just the potential short-term gain or ease of execution. Nearly a decade ago, The Little Gym had routinely entered into several short-term partnerships. The rotating
menu of partner logos was a low-effort, but also low-impact approach that yielded very little benefit for everyone involved. After evaluating the results of these efforts, the decision was made to dedicate resources towards building strategic, long-term, and value-adding relationships. Ultimately, we found that more meaningful relationships not only generated brand awareness but could also boost revenue and diversify our program offerings. When The Little Gym partnered with LEGO Systems, Inc., the relationship was structured so that the partnership added new layers to our Three-Dimensional Learning approach to skill development. Partnering with educational specialists and play consultants from The LEGO Group and integrating products from the LEGO DUPLO and LEGO Juniors line
of building toys expanded and enhanced program offerings. One of the most successful examples has been WonderKids Club, a preschool prep program that includes LEGO building activities that complement and enhance in-gym learning. Beyond just building, LEGO DUPLO bricks are incorporated into learning activities that foster color recognition and sensory development and provide children with new ways to creatively boost their problem solving, imagination and socialization skills. In addition to WonderKids Club, program integrations include “Let’s Build, Let’s Play” Parent/ Child events, Awesome Birthday Bash parties, Camps, and Parents’ Survival Nights. The partnership has not only brought LEGO product into the gyms, but it has done so in a way that has driven new members. It’s also strengthened member retention as customers have found increased value in the variety of special opportunities available for their families. For all families participating, it’s shown them new ways to play with a product they already know and love.
Ensure Core Value Alignment Being selective and strategic is the foundation for a successful partnership but is by no means the only key to success. The best business partnerships are between brands that share core values and have similar overarching visions. This allows for greater integration and sets the stage for deeper, more impactful partnerships that can evolve over time. This concept has been key to the success of The Little Gym’s philanthropic efforts, “The Little Gym Big Hearts.” Consumers place higher expectations on brands now than they had in the past. To win their loyalty, brands must deliver more than just good products and services. They need to show that they’re supporting the community and positively contributing to the world the consumer lives in. Partnering with a charity or a brand with shared philosophies can allow you to do well by doing good. Most recently, The Little Gym has
“Business partnerships, like all relationships, require constant and open communication, hard work, and a desire and willingness to support each other.” entered into a unique partnership with Entertainment One to begin offering Peppa’s Muddy Puddles Party, a one-ofa-kind birthday party that takes kids on an imaginative adventure with Peppa Pig, George and all their friends. On behalf of every party booked, The Little Gym will be making contributions to The Muddy Puddles Project, the official charity partner of Peppa Pig dedicated to supporting childhood cancer research. This unique partnership is designed to introduce kids to the idea of using their birthday as an opportunity to give back, while providing franchise owners with a unique themed birthday offering and supporting a very worthy cause.
Define Success Business partnerships, like all relationships, require constant and open communication, hard work, and a desire and willingness to support each other. Defining partnership goals early-on is also vital. These goals must be clear, relevant and attainable for both companies involved. Partnerships take a lot of effort, but the rewards have the potential to be tremendous. Ultimately, it’s important
that franchisors be prepared to put in the work. You may only have one chance to successfully launch a partnership with customers. You need to ensure that every campaign is well thought out and impactful. The most fruitful business partnerships are generally the ones that require the most work and have the highest degree of integration between brands. Through mutual understanding and strong work ethic, both companies will be able to capitalize upon each other’s expertise and leverage each company’s successes to increase brand value, enhance customer experience, and drive revenue. Heather Anderson is the Director of Marketing for The Little Gym International, Inc. She oversees all consumer, franchise development and partnership marketing efforts and has held multiple roles since joining the company nearly a decade ago. She played an instrumental role in the development of the “Serious Fun” branding campaign and is currently spearheading the company’s efforts to build authentic relationships with Millennial Moms, their largest group of current and future customers. www.thelittlegymfranchise.com
Franchising USA
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