Feature Supplement Food and Franchising December 2021 by CGB Publishing

VOL 10, ISSUE 1, DEC 2021

COVER STORY

Slim Chickens

The Better-Chicken Brand You Need In Your Portfolio

Restoration Solutions

Help Restaurants Cut Costs How To Determine

The Current Value Of An Existing Franchise latest news

in food franchises

Franchising MAGAZINE USA 23

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@OurFranchise is an industry-wide campaign created to spread the word about the value of franchising and share the stories of men and women just like you, who are leading the way as franchisors, franchisees, and franchise employees. The franchise business model has been proven time and time again to work, but it’s threatened when the public and politicians don’t understand how it operates to beneﬁt local, independent franchise establishment owners and their communities. Putting a spotlight on real leaders succeeding with the franchise model is how we’ll ensure franchising is stronger than ever before.

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contents

food franchising 30 32

Expert Advice 32 Chris Conner:

Why Food Franchises are an Easy

to Swallow Business

34 Sam Willis:

Cover Story 30 Slim Chickens: The better Chicken Brand

What’s New

How to Determine the Current

Value of an Existing Franchise 40 Bob Ray:

Navigating the Labour and Supply

26 Franchising News

Chain Shortage

44 Mark Bolman:

Announcements from the Industry

Q&A 38 Ryan Ursrey: Roll-em-up, Roll-em-up

Focus Feature 36 Rush Bowls: Rush Bowls Reveals plans to open 3 new Denver Locations

Restoration Solutions help

Restaurants Cut Costs

Have Your Say 42 Main Squeeze Juice Co:

Should Franchises Partner with

Professional Athletes

38 Franchising MAGAZINE USA 25

f o o d fr a n c h i s i n g fe at u r e

Another Broken Egg Cafe Accelerates Remodel Initiative as New Design Outperforms the System Another Broken Egg Cafe, an innovative full-service breakfast, brunch and lunch franchise that specializes in Southerninspired menu options and creative cocktails, announced today it has now opened over 20 new cafes with its New South design prototype and completed 13 remodels of existing restaurants. The new and remodeled cafes are outperforming the system, and plans are underway for more company and franchise remodels throughout next year and beyond. Another Broken Egg Cafe’s new design significantly highlights the brand’s full bar and doubles bar seating by providing access to patio diners. Additionally, it creates space to accommodate the rapid rise in off-premise business and adds seating to keep up with the brand’s same-store sales increases, which are up over 20% this year. Franchisees like Jake Alleman have already seized the opportunity to remodel, recognizing an opportunity to update the overall look of the dining room and take advantage of the popularity of Another Broken Egg Cafe’s bar-forward approach. Alleman, who opened his first of eight Another Broken Egg Cafes in 2007, recently finished remodeling his Panama City, Florida, location to reflect the New South design. ”Our guests and team members are thrilled with the updated, modern farmhouse look,” says Alleman Another Broken Egg Cafe currently has 77 locations and is looking to grow significantly in markets across the U.S. With plans to reach over 200 cafes open by the end of 2026, the company is aggressively seeking single- and multi-unit operators to drive growth. Interested candidates should call 407-440-0450 visit www.anotherbrokeneggfranchise.com for information. 26 Franchising MAGAZINE USA

ROLL’D - With Over 1000+ Australian Locations to Get a Fresh Vietnamese Food Fix, Continues to Grow with International Store Openings On The Horizon Australia’s leading fresh, fast-food chain, Roll’d Vietnamese is taking their brand global by bringing its brand of fresh Vietnamese fare to Salt Lake City, USA in May 2022! This will be Roll’d’s first international store and include seeing key members of their Australian team relocated to launch and grow Roll’d within the US market, with sights set on Canada, the UK, France, Japan and New Zealand to follow. As the youngest and fastest growing state in the United States, Utah is the perfect location for Roll’d’s international expansion. Salt Lake City residents will fall in love with Roll’d’s affordable and delicious menu options, especially with its offering of fast and fresh meals including traditional Vietnamese noodle soup (Pho), Solider (Roll’d rice paper rolls), bánh mì (Vietnamese baguettes), bún (noodle salad) and goi (salad). The success of Roll’d boils down to the creative, precise and tenacious mind of founder, Bao Hoang. Along with his cousin Tin Ly and friend Ray Equieres, Hoang opened the first Roll’d Vietnamese in Australia in the heart of Melbourne’s CBD in 2012 as a bid to knock the famed sushi roll off its pedestal. Hoang comes from a family of incredibly hardworking refugees. Roll’d credit its success to thought leadership and workplace culture, enabling the healthy takeaway giants to power ahead over the pandemic. Equally innovative as adaptable, Roll’d is offering greater flexibility in its business model, offering a variety of store models for prospective franchisees to choose from. http://www.rolld.com.au/

California Tortilla® Celebrates New Service Model and Grand Re-Opening in Dumfries California Tortilla®, a unique fast-casual restaurant franchise that serves “California style” Mexican food and is known by fans as Cal Tort, recently celebrated the grand re-opening of its Dumfries, VA location. The restaurant located at the Shoppes of Quantico Center (3934 Fettler Park Dr., Dumfries, VA 22025) will feature the brand’s newest service model offering guests the flexibility to customize their meals to their tastes using the brand’s vast array of signature sauces and toppings. The grand re-opening week is slated to kick off at 11 AM and is open to the public. Current COVID-19 restrictions will be followed. “We are so excited to unveil our new look in Dumfries and reconnect our area fans with our bold and beloved flavors,” Robert Phillips, President & Chairman of California Tortilla. “The Dumfries re-opening is made even more special with the first retro-fit of our new service model, which we named ACE (Accuracy, Customization, and Engagement). The model allows our guests to really experience our full array of flavor profiles.” California Tortilla will feature the service model in all new restaurant locations and plans to install it in all existing restaurants. In addition to the guest centered model the company continue to lean into innovation. Recently they invested in updating their online ordering platform and mobile app to

California Tortilla plans to roll out the new service model to all locations accentuate ease of ordering and meal customization. The Dumfries location is owned by Charlie Patel who currently owns 11 locations and looks forward to future growth with California Tortilla. For more information visit www.californiatortilla.com

APPLEBEE’S NEIGHBORHOOD GRILL + BAR® Names Apple American Group 2021 Franchisee Of The Year Apple American Group LLC (AAG), a wholly-owned subsidiary of Flynn Restaurant Group LP (FRG), the world’s largest franchise operator and one of the 20 largest food service companies of any kind in the United States, today announced that it has been named the 2021 Abe Gustin Franchisee of the Year by Applebee’s Neighborhood Grill + Bar. Specifically, AAG is being recognized for its overall commitment to brand success, operational excellence, guest service and community involvement. The award was presented during the 2021 Applebee’s Business Meeting, which was held in Scottsdale on November 16. This marks the fourth time AAG has been honored as Applebee’s Franchisee of the Year; it has also been honored four times as Applebee’s Operator of the year. With 441 restaurants in 23 states, AAG is Applebee’s largest franchisee

Flynn Restaurant Group, the World’s Largest Franchise Operator, Receives the Abe Gustin Franchisee of the Year Award for Its Commitment to Brand Success, Operational Excellence, Guest Service and Community Involvement and comprises approximately 27% of the Applebee’s system. This is also the second time in as many months that a Flynn Restaurant Group subsidiary has been recognized as Franchisee of the Year for 2021. Just last month, Flynn’s subsidiary RB American

Group LLC (RBA), the largest Arby’s franchisee with 365 units, was named Franchisee of the Year for the Arby’s system at the brand’s national convention in Atlanta. https://www.rbamerican.com/ Franchising MAGAZINE USA 27

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WABA GRILL 2021 Sales Continue To Wow Franchisees WaBa Grill, one of the nation’s leading healthy rice bowl chains, has announced that Q3 2021 same store sales (SSS) jumped 17.9% over the same period last year, as the brand continues to make impressive gains across the sales spectrum. WaBa Grill’s Q3 increase in SSS represents a remarkable jump of 30.6% over the same pre-pandemic period for 2019, illustrating extraordinary ongoing sales momentum as the year begins to wind to a close. Following a record-setting 2020 that saw WaBa Grill register the best sales year in company history, 2021 continues to track toward a second-consecutive annual sales milestone for the brand known for its healthy and fresh menu served at super speed. As 2021 marks 15 years in business, WaBa Grill’s Q3 total store sales (TSS) of $43.5 million was the second consecutive quarter to exceed $40 million in sales with TSS in Q2 eclipsing $40 million for the first time in company history. Robust digital sales via online orders, the WaBa Rewards App and third-party delivery continued to rise and currently represent nearly 25% of total sales. “As we celebrate 15 years in business with an array of milestones and accomplishments, we are feeling very grateful for our dedicated franchise partners who serve as our most passionate brand

ambassadors,” said Andrew Kim, President & CEO of WaBa Grill. The nearly 200-unit brand is primed to continue expansion having identified key markets throughout the western U.S. and is seeking franchise partners interested in expanding their portfolios with an established healthy fast casual brand on the rise. For more details about partnering with WaBa Grill, visit www.wabagrill.com/franchise.

QDOBA Mexican Eats Promotes Karin Silk to Chief Marketing Officer Former Vice President of Menu and Off-Premises tapped to drive strategic marketing and digital efforts for leading fast-casual restaurant chain In her new position, she will oversee QDOBA’s strategic marketing and digital initiatives, in addition to continuing her leadership of the menu and off-premises sectors of the business, which includes culinary strategy, third-party delivery partnerships and catering.

QDOBA, the Mexican restaurant chain voted best fast-casual restaurant in 2019, 2020 and 2021 by USA Today 10Best, announced today the promotion of Karin Silk to chief marketing officer. 28 Franchising MAGAZINE USA

“Without a doubt, the innovative programs Karin spearheaded during her time with QDOBA made this well-deserved promotion an easy decision,” said Keith Guilbault, CEO of QDOBA. “We’re pleased to elevate her role on the senior leadership team as we continue to expand the QDOBA brand and distinguish it as one of the most popular fast-casual restaurants in North America.” Prior to joining QDOBA, Silk served as senior vice president of marketing for

Rubio’s Restaurants, Inc. She also spent seven years with PepsiCo-Quaker Foods. She began her career with Deloitte Consulting, after earning her MBA from the Kellogg School of Management at Northwestern University and Bachelor of Arts from Bowdoin College. “Working for and with QDOBA is one of the highlights of my career,” said Silk. “I’m excited for this next chapter, including an opportunity to work with an exceptional group of franchisees who live and breathe our mission of bringing flavor to hungry people across the U.S. and Canada. We’ve got some great programs on tap for 2022 that will be announced very soon, so stay tuned!” Discover more at

D’Angelo Grilled Sandwiches Announces Franchise Growth Opportunities

UNO Pizzeria & Grill Introduces a New Franchise Concept UNO Pizzeria & Grill, the restaurant chain known for its Chicagostyle deep dish pizza, is introducing a new franchise concept that recreates the iconic look and feel of its original Pizzeria UNO Chicago location. The new model will offer franchisees a customizable floor plan that allows them to take advantage of existing space and is flexible to accommodate a variety of sizes. Franchisees will also have the ability to add additional takeout and delivery only locations to expand reach with minimal build-out costs. Pizzeria UNO will showcase UNO’s strong pizza heritage and credibility, but with a vibe that’s more relaxed and reminiscent of your local pizza joint. A newly designed cooking process will allow for quicker pizza production time, leading to rapid customer turnaround time. Additionally, a more condensed, pizza-centric menu will offer customers UNO’s famous Deep Dish Pizza and a selection of the brand’s best-selling Chicago Thin Crust Pizza, as well as appetizers and salads. The new concept has signed on three franchisees in 2021 and has plans for continued expansion heading into 2022. In addition to the new stand-alone and in-line sites, hotel restaurant conversion, redevelopment and buildout has become a popular place of interest from early prospects. The UNO brand and product play well within the hotel restaurant framework—offering multiple revenue stream possibilities. UNO is actively seeking franchisees to grow with this new pizza-centric concept worldwide. https://www.unos.com/

D’Angelo Grilled Sandwiches announced today that the company is looking to expand, with exceptional franchise opportunities in New England and beyond. With nearly 100 locations in Massachusetts, Rhode Island, New Hampshire, Maine and Connecticut, the iconic New England brand hopes to add a significant number of new franchise locations in the next couple of years and is open to all interested parties. D’Angelo Grilled Sandwiches is a regional classic, with currently 45 percent of all locations franchised, and hoping to expand to additional locations across the Northeast. The neighborhood sandwich shop has been the local go-to for juicy, meaty and freshly Grilled Sandwiches since 1967 and remains dedicated to serving crave-able, indulgent grilled favorites conveniently to the surrounding communities. “With our trusted business model and deep roots in neighborhoods across the region, we couldn’t be more excited to expand with new franchise opportunities throughout New England,” said Tom Sterrett, CEO of D’Angelo Grilled Sandwiches. “This is a concept where franchise owners can take the reins of a local favorite sandwich shop and share the high-quality ingredients and community-oriented leadership we’re known for within the neighborhoods we serve.” Current franchise owner, Chris Howland, states, “I became a D’Angelo franchise owner in 2019. My father was a D’Angelo franchisee along with several of my uncles. I had the opportunity to see their success and passion for the business while growing up, and I am proud to carry on that tradition. The brand recently launched a franchise website, dangelos.com/franchising, where interested parties can visit to learn more. Franchising MAGAZINE USA 29

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COVER STORY: SLIM CHICKENS

Slim Chickens:

The Better-Chicken Brand You Need In Your Portfolio

Slim Chickens has been heating up as a better-chicken brand since 2003. We’ve stood by our mission for nearly 20 years: to make the best hand-breaded chicken tenders using only the freshest ingredients, served in a friendly atmosphere where people can relax and feel at home. To put it simply, we provide the highest quality food in the best way possible — and we have the results to prove it. We began franchising in 2014 and have been skyrocketing ever since. Our presence has continued to explode, and we know that comes down to two simple things: honoring our mission and partnering with amazing franchisees! We know chicken is the space to be in 30 Franchising MAGAZINE USA

right now within the QSR world, and we’re proud of the impact we’ve made within the industry. The time has never been better to take advantage of the chicken market — just ask Cleveland-based Slim Chickens franchisee David Giesen. “Slim Chickens is a uniquely cool brand with so much growth potential, and it provides me with the opportunity to tap into the growing chicken tender market,” said Giesen. “I knew this was the right fit for me — and now was the right time. Slim Chickens has maintained or increased its momentum in recent months and the brand’s sales are up year-over-year. I can’t recommend this brand enough!” No arguments there — Slim Chickens is an excellent entry point into the chicken tender market, but it goes beyond the tenders too. We differentiate ourselves by offering amazing flavors across the board without limiting our menu offerings.

Every chicken restaurant is going to have their “bread and butter” chicken dish, whether that be tenders, a crispy chicken sandwich or wings. Most will focus on that one entrée with a couple different

side options, and while we’re endlessly proud of our chicken tenders, we have a broad menu full of other choices for our customers to enjoy. From chicken tenders, to chicken and waffles, salads, sweets (our jarred desserts are to die for!), and our 17 house-made dipping sauces, our menu has played a big role in getting us to where we are today. When we opened our first Slim Chickens it was with the understanding that food comes first — we knew if we got that right, everything else would follow. And follow it did! A few years back we set a goal to open 600 locations in the next ten years. Since then, Slim Chickens has opened over 150 locations with plans to open more this year and has approved over 60 sites for 2022. On top of that, we’ve accumulated more than 750 signed development deals. 350 of those agreements were completed this year alone, proving that even with the challenges the quick service industry has faced in recent years, Slim Chickens has the staying power to not just get through the challenges, but to thrive despite them. The writing was on the wall for a lot of restaurants in 2020, but we adapted to suit our evolving customers’ needs, and look where we are today! In addition to our food and ability to adapt quickly when faced with challenges, our franchisees help propel us to success thanks to their experience as multi-unit operators and dedication to the brand. In turn, we support with the best service in the industry, from training and operations,

Our brand is “ hot and selling out fast. ”

Slim Chickens is a uniquely cool brand with so much growth “potential, and it provides me with the opportunity to tap into the growing chicken tender market,” said Giesen. ” to construction and development, to opening day and beyond. It’s this winning combination of excellent food, superstar franchisees and unwavering corporate support that has helped us advance our brand and find ourselves fielding countless awards and accolades, including best chicken franchise to buy, top 100 movers and shakers, 40 smartest growing brands for 2021, and more. Even without the awards, our numbers speak from themselves. Slim Chickens has an AUV of $3.4 million*, along with a surplus of other remarkable growth statistics. While most brands have struggled to adapt and excel within the landscape of the pandemic, Slim Chickens saw more than 35% systemwide revenue growth, about 14% positive comp store sales growth and grew it’s franchise by an impressive 30%. Our 2021 numbers are just as outstanding, with double digit comp store sales growth just like last year. In the coming year, we plan to keep the growth going as we charge on toward our goal of opening 600 stores. We have no doubt we’ll reach our goal with our more than 750 units already in development, strong unit economics, a stellar executive team and a strong (and growing!) base of incredible franchisees. Our brand is hot and selling out fast — whole states like Arizona and Colorado have already been snapped up! — but

we have plenty of territories we’re still looking to expand our brand in, including Pennsylvania, Minnesota, Illinois, Michigan, New York, and more. If you’re interested, don’t hesitate to reach out. We never know when another market might sell out! Thomas Barnett and Shane Jacobs of Barnett Management, Inc. are just one example of knowing a good thing when they see it — the pair recently bought out the entire state of Arizona and are excited to bring our delicious chicken to the Grand Canyon state. “We’ve been a part of the QSR industry for decades, and this opportunity to bring Slim Chickens to Arizona through larger pathways and join the fast casual industry is one Tom and I were eager to take advantage of,” said Jacobs. “People love Slim Chickens, and will be excited to know that the brand is coming to give them the dose of southern hospitality and delicious cook-to-order food they have come to crave!” Slim Chickens’ future is bright — come join us! We’re the better-chicken brand with quite a bit to cluck about. *AUV for group #1 franchised restaurants in the 2021 FDD

About the Author: Jackie Lobdell is the vice president of franchise development for Slim Chickens, a U.S.-based better-chicken concept. visit slimchickensfranchise.com Franchising MAGAZINE USA 31

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EXPERT ADVICE: Chris Conner | Founder | Franchise Marketing Systems

Why Food Franchises Are an Easy To Swallow Business Let’s try something — close your eyes and think of franchises in your community. Chances are, you may have McDonald’s, Subway, Burger King, or Chick-fil-A come to mind. More than likely, your list contains several food franchises, if not these very ones we’ve listed here. Franchising is to food what Shakespere is to poetry. They go hand in hand. Are you pondering a franchise model to fit your palate? There are quite a few different types out there. That is one of the things of beauty for food — the sheer flexibility in these concepts and models means there is something for anyone who desires a food business.

Traditional Fast Food “If you’re not a risk taker, you should get the hell out of business.” That’s a quote from McDonald’s visionary and founder, Ray Kroc. His company went on to pioneer some of the riskiest moves anyone had ever seen. He grabbed the bull by the horns, made it a hamburger, and threw it on the assembly line. Fast food was born. 32 Franchising MAGAZINE USA

Fast food franchises are an excellent choice for those seeking to sink their teeth into franchising. High volume, low cost labor, low cost inventory. These will have a smaller footprint that a full service establishment, but are dependent on high priced real estate since convenience is key to the drive thru model. One of the brands we’ve worked with, Southern Classic Chicken, for example, requires things like access to an intersection, strong day time traffic, and great visibility for their locations, indicative of most fast food models.

Sit Down and Dine In Full service restaurants have quite the reputation to precede them. Long hours. Working weekends and nights. High employee turnover. While these not-sopleasing characteristics may be all too true, buying into a full service restaurant franchise greatly mitigates your business risk. Like any franchise, the guesswork has been done for you. You will know the hours to expect, the type of staff that stay, the high selling menu items, and the best schedule to keep.

These types of restaurants offer more than just a traditional concept. For example, Bar Cava is a full service, sit down restaurant. But the difference here is the concept is based around wine and high end cocktails. This particular brand gives its franchisees the blueprint and boundaries from which to operate, but allows several freedoms for stylistic flexibility, such as adding a lounge, decorating with different colors, bringing in local brews, or offering communitybased favorite menu items. Atlanta-based Dugan’s offers its franchisees three different models: Dugan’s Grill, Dugan’s Tavern and Sports Grill, and Dugan’s ToGo (not a full service concept). Creativity can still reign for those with a passion for cuisine without the deep end dive of going at it alone and from scratch.

The Healthy Move Brands like Chipotle and Panera have brought fast casual, healthier food options into the market spotlight. The fast casual model somewhat straddles the fast food and full service concepts, coupling the best of both worlds in joyous matrimony. One brand we developed last year, Daily Veg, is a perfect example of how these models cater to the more health conscious crowds while another brand we worked with, Crazy Cuban, specializes in Cuban fare and a more general audience. The fast casual concept bends with the times (hello, Covid), works well with 3rd party delivery, and necessitates a smaller footprint than a full scale dining concept. However, customers are still attracted to these types of places for celebrations, large party gatherings, and for catering. Like I said, the best of both worlds.

Meal Prep for the Win If there was ever a more applicable model for the busy lives of Americans, meal prep is it. Customers can say goodbye to guiltridden take out and instead opt for a homecooked meal prepped by other hands. These are an extremely small footprint model as they do not have seating inside. Oftentimes, this concept can be used to partner with other businesses such as gyms to boost brand recognition and product placement. For example, AfterBody Meals not only offers their meals for pickup, but gives clients a straight-to-their-door delivery option too. Low overhead, low staff requirements, and high demand make this model and concept a winner in my book.

Treat You Right You can’t talk about food franchises without swirling in the sweet treat niche. Ice Cream Hut, Candy Connections, and Rok N Wtr were all just developed this year by my team and I. We are seeing such high demand for these types of stores because they are fun to operate, lend themselves to a naturally positive environment, and are specialized enough to help lower food waste and to keep volume high. Typically, these types of concepts offer flexible model options. For example, Candy Connections has a kiosk model for malls. The brand

specializes in cotton candy, even selling the fluff retail in various container sizes. Another mention here that isn’t necessarily sweet, but along the same specialized grab-and-go vein are the coffee and tea franchises. Teaspoon, a booming boba tea franchise, has experienced exponential sales this year. They don’t require tons of space, offer several ordering channels, and do well on social media. As a matter of fact, many of these smaller menu niche brands do great on social media because of the picturesque items they offer. Finally, we can’t make a move without talking about coffee franchises like Foxtail Coffee or Coffee Junkiez/Pizza Junkiez. These models do great in most locations and have drive thru options available. With coffee, you get passionate workers who want to stick around and serve up the joe. All in all, sweet treats and speciality drinks are an easy choice for first timer franchisees, typically having lower start up costs. Thinking about buying a food franchise? My team and I can help. We have hundreds of brands we have personally developed and that we will vouch for being great choices for your next business.

Chris Conner has worked in the franchise development industry for almost 20 years and helped over 600 brands franchise their brand and develop franchise distribution channels. He founded Franchise Marketing Systems in 2009, which now includes a team of 27 franchise consultants based in and Canada and supports brands around the world to grow and scale through franchise expansion. Visit www.fmsfranchise.com for more information Franchising MAGAZINE USA 33

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EXPERT ADVICE: Sam Willis | Business and Finance Writer

How To Determine The Current Value

Of An Existing Franchise Owning a franchise is often an attractive option for entrepreneurs. Factors such as brand awareness, corporate training, and franchise purchasing power are a few of the benefits that seemingly give franchisees a leg up over individual business owners.

With that said, not every franchise location is a clone of its peers, with myriad factors capable of influencing the value of a

specific location. Therefore, whether you

are an owner looking for advice on how to

sell a franchise or an entrepreneur looking to explore the benefits of becoming a

franchisee, the following 5 methods can

provide helpful insights into the valuation of an existing franchise.

with the Balance 1Start Sheet

When looking into how to value a business, any preliminary efforts will likely start with the balance sheet. The balance sheet is a breakdown of the business’ assets and liabilities. Often referred to as the “book value” of the business, the assets of a business will include items such as real estate, buildings, vehicles, equipment, and anything else that

“

If there is a pattern of increasing revenue each year, the buyer can feel confident that more customers are turning to the business, with profit margins to be optimized with improved management.

”

34 Franchising MAGAZINE USA

of the revenue is created via credit or installment purchases, that revenue can be difficult to convert into ready cash. On the flip side, income may look small, but if an owner is writing off depreciation and business expenses, such as company cars or owner wages, the actual cash potential of the business is much higher.

could be sold to obtain cash. Liabilities will include items such as loans, accounts payable, mortgages, and any other outstanding debts that the business may owe. With the exception of land, assets can be depreciated and written off for tax purposes, making the net assets of a business look quite small. In addition, the balance sheet does not concern itself with the ongoing revenue potential of a business, so it is far from a complete picture of what the business is worth. However, for franchises that have a lot of specialized equipment--such as restaurants--with most of its assets paid off, the balance sheet is an important document to dissect when preliminary valuations are conducted.

2Assess Revenue

Revenue is one of the most controversial statistics for assessing business valuation. Some entrepreneurs find it completely irrelevant, while others feel like it is the single most important metric for determining a business’ growth potential. Revenue is simple to analyze: it is the total value of all goods and services sold by a business. It is the amount of money brought into the business before factors such as cost of goods sold, wages, warehouse expenses, etc. are taken into consideration. A business may have enormous revenue but very little profit. The grocery industry is a good example. Grocery stores sell a lot of stuff and accumulate enormous revenue each month, but the cost to generate this revenue is extremely high, with final profit margins usually hovering around 1%.

For this reason, revenue is more applicable as a valuation metric for smaller franchises looking to increase market share. If there is a pattern of increasing revenue each year, the buyer can feel confident that more customers are turning to the business, with profit margins to be optimized with improved management.

3Use an EBITDA Multiple

An EBITDA multiple is a widely used technique for quickly assessing a business’ value. EBITDA is earnings before interest, taxes, depreciation, and amortization. These items are excluded from earnings because they will differ between the buyer and seller, so EBITDA is a more fair starting point for the buyer and seller to assess the franchise from their unique perspectives. For example, if the seller has most of his or her debts paid off, interest expenses will be very low. However, the buyer may have to utilize significant leverage to make the purchase, causing his or her interest to be sky-high. Common EBITDA multiples are three or four. However, they can be as low as two or as high as five, depending on what type of business valuation calculator is used.

The cash flow statement factors in these circumstances, with many buyers valuing the business at five times its yearly cash flow.

Study the Sale of 5Comparable Businesses

Finally, after all of the metrics of the specific franchise have been picked apart, it is often helpful to take a look at the sale of comparable businesses before arriving at a final figure. This is usually much more helpful for franchises than private enterprises, as there are often many applesto-apples comparisons on which to draw. The franchise itself usually can help the franchisee through the sale process by providing a robust list of comparables. After analyzing these figures, a valuation can be made for a specific store based on factors such as location and management.

Five Methods for Helping Determine the Value of an Existing Franchise There are many benefits of becoming a franchisee of an established brand. However, despite the established presence, not every franchise location is as valuable as the next. Therefore, careful assessment of the balance sheet, revenue, EBITDA, cash flows, and comparable sales are all critical factors for determining the current value of an existing franchise.

the Cash Flow 4Analyze Generated

The cash flow multiple is arguably the king of business valuation techniques. Many of the other metrics for assessing a franchise’s health can be manipulated for tax purposes. However, at the end of the day, any business owner is primarily concerned with the amount of free-and-clear cash that the business generates. Revenue may look enormous, but if most

Sam Willis is a business and finance writer that focuses on helping small business owners increase the value of their business. He specializes in topics related to business valuation, business management and business acquisitions. Franchising MAGAZINE USA 35

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FOCUS FEATURE: Rush Bowls

Rush Bowls

Reveals Plans to Open Three New Denver Locations Pioneer in blended fruit and veggie bowls to add three new locations in its home state’s capital Rush Bowls - a fast-casual concept known for its fresh and healthy meals-in-a-bowl – continues its rapid national expansion by announcing three locations to open in the Denver area within the next four years.

Owned by husband-and-wife duo Ian and Giorgia Turpen, these new locations will further position Rush Bowls as a prominent provider of healthy food options in Colorado. Potential locations for these restaurants include the Denver metro area, near the University of Denver campus, and Louisville, which is a suburb about 45

minutes north of the city. The first of the Turpens’ Rush Bowls locations will open in mid-2022, with the other two planned to open in the following years. Giorgia Turpen immigrated to the United States from Italy in 2009 to attend the University of San Diego. A few years later, she married Ian. She then graduated law school in North Carolina, where she began her career as a personal injury attorney. Shortly after, the couple decided to move to Colorado in 2016. Now, Ian works in a sales role at a large educational company, requiring him to travel a lot. Because of Ian’s frequent flying, Giorgia relied on smoothies and bowls from her local Rush Bowls to stay healthy and fuel her workouts while he was gone. She quickly became hooked on the concept and looked into opening a franchise location with Ian, who shares her passion for eating nutrientpacked meals at Rush Bowls to maintain a healthy lifestyle. The pair realized that this was the perfect opportunity for them to keep their full-time careers while pursuing their dream of owning a small, healthfocused business to support their young family. “We are thrilled to open three Rush Bowls locations over the next few years in such a fast-growing city like Denver,” said Denver Franchisee Giorgia Turpen. “We can’t wait to share our passion for high-quality, healthy meals with the community. We are confident that they will fall in love with this unique concept just as quickly as we did.”

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We can’t wait to “ share our passion for high-quality, healthy meals with the community.

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Rush Bowls offers its guests a wide selection of customizable bowls and smoothies. An industry pioneer in the genesis of healthy food bowls, the brand’s bowl creations provide guests with the perfect blend of all-natural fruits and veggies topped with delightfully crunchy, organic granola, a drizzle of honey, and a choice of fresh fruits and toppers. Rush Bowls can be blended with protein, vitamins and other nutritious ingredients while remaining low in calories and fat content.

“We have seen an increased demand for our bowls, smoothies and other products, as the health and wellness category continues to grow. We are also very proud to cater to almost every dietary need without any additional cost to our customers. Whether you’re vegetarian, vegan, wheat-free, gluten-free, soy-free, dairy-free or nut-free-- we have something for you,” said Rush Bowls Founder and CEO Andrew Pudalov. “We are thrilled to accelerate our rapid national expansion by adding three locations in our home state to provide healthy food options to more people.” Rush Bowls’ success and growth earned the brand the top spot on the Restaurant Business Buzzworthy Brand list. The franchise saw a three-year average sales growth of 99.2% and unit growth of 117.8% during the period. In 2020, Rush Bowls also earned a spot on QSR’s 40/40 List for 2021: America’s Hottest Startup Fast Casuals, which recognized fast-casual concepts poised for growth in the new normal and beyond. Looking ahead, Rush Bowls plans on opening new locations across the United States. The brand is looking to further expand throughout Minnesota, Indiana, Texas, Connecticut, Washington, Florida, California and Idaho.

About Rush Bowls Rush Bowls was founded in 2004 when founder, Andrew Pudalov, a Wall Street executive, decided to leave New York’s financial scene to pursue his dream of creating a healthy, fast-casual restaurant that fueled people’s lives with honest ingredients and delicious recipes. As a result, Rush Bowls was born in Boulder, Colorado, offering meals crafted from the finest fruits and vegetables, topped with organic granola and honey, and other nutritious ingredients that taste delicious while promoting a healthy lifestyle. Franchising since 2016, Rush Bowls currently has 35 restaurants open and operating in 19 states with over 100 additional locations in various stages of development with expansion to 23+ states. For more information on Rush Bowls’, visit www.rushbowls.com, and for more information on the brand’s franchise opportunity, visit https://rushbowls.com/franchise Franchising MAGAZINE USA 37

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Q&A: RYAN URSREY | Roll-Em-Up

Roll-Em-Up Roll-Em-Up

Q&A with RYAN URSREY Describe your organisation – how long has it been in operation? when did you start franchising? how many franchisees do you currently have? We are the only taquito focused multi-unit fast casual concept in the world. The story of Roll-Em-Up Taquitos’ is simple; it began in my childhood home, where my father and I fell in love with my mother, Karen’s, famous beef taquitos. My family and I always talked about opening a taquitos-only eatery, but unfortunately, my mother passed before that dream became a reality. Fast-forward to today, we are “Blastin Reggae” and opened the first Roll-Em-Up Taquitos in Chino Hills, California in 2019, where we sold an average of 3,500 taquitos a day. We opened our second location in Brea, California and our third in Victorville, California. In May, we made the decision to begin franchising and currently have 71 units sold and under development agreement with another 70 in the pipeline. Our next two locations are set to open in the next six months.

What is your main product/service? Our menu is simple but focused and easy to execute. Taquitos of course, are the star. Braised shredded prime beef slow cooked overnight, marinated chicken, avocado, potato and fresh grated cheese. Roll-Em-Up Taquitos are made only with fresh ingredients and are hand-rolled daily with corn or flour tortillas and pan-fried in custom cast iron skillets, just like Mama Karen made ‘em. You won’t find a freezer in the joint! Traditional toppings include cheese, sour cream, freshly made guacamole, in addition to an array of proprietary, house made dipping sauces, including a mild or spicy house sauce, guac sauce, queso sauce, and our famous “lit” sauce.

Ryan Ursey (left) with Chris Wyland - Chief Development Officer at Roll-Em-Up.

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Rounding out the menu is our wildly popular take on street corn, whole ears of corn on a stick that come loaded with butter, mayo, cotija cheese; dusted with Hot Cheetos and tajin or coated in queso, for a crave worthy treat served conveniently in a Roll-Em-Up cup and lid. House made beans and rice are also available and for dessert, churro donuts are fried to order and drizzled with caramel sauce. Beverages include batch craft soda along with assorted flavors of horchata.

While the entire industry is fighting over “ who has the best chicken sandwiches, pizza, and cheeseburgers, we are in a category by ourselves.

”

What type of person would ‘fit’ your franchisee profile? We look for individuals who have franchise experience owning multi-unit, quick service restaurants, or have significant business experience with the agreement that they will bring in an “operator”. In addition, it is crucial for our franchisees to have an entrepreneurial spirit and a love for what they do.

Where are your current locations/territories? Where are locations/territories available? After opening our first location in Chico Hills, California, we’ve targeted expansion across our home state. With the majority of Southern and Central California are sold out of franchise opportunities, we are now starting to focus on Northern California and neighboring states. We plan to expand in Arizona, Nevada, and Texas come next year.

Why is there a need for this product/service? Why are you different to your competition? While the entire industry is fighting over who has the best chicken sandwiches, pizza, and cheeseburgers, we are in a category by ourselves. We utilize fresh, never frozen ingredients in our handrolled taquitos that we panfry in our custom-made skillets. Stop the violence, eat a taquito!

How do you look after your franchisees? e.g. what support/training/back up do you offer? We’ve created a franchising concept that is approachable, offering support to our franchisees in the areas of real estate, design, construction, training, tech, and marketing. Perhaps most notably,

we have implemented a wide-ranging tech stack. These are designed for much larger brands but we have decided to invest early so our franchisees have the best tools available to them. In addition, we offer ongoing support to ensure that our franchisees have all the necessary resources to continue growing.

Plans for new systems/concepts in 2022 We currently hand roll over 3,500 taquitos at each store daily. In 2022, we will introduce automation to roll the taquitos, in an effort to keep up with the rising demand. We will also roll out a breakfast menu, giving taquitos a morning twist. In addition, we have partnered with and are currently implementing services that offer operational support including Restaurant 365 (Accounting, Inventory, Scheduling), Olo (Online Ordering), Punchh (Loyalty/ Rewards), Franconnect (CRM/ Operations), Toast (POS).

Where do you see the Franchise in the next five years? Our goal is to have 250 open locations in the U.S. with 1,200 units under development agreement. • What is your advice for those exploring franchise opportunities? My advice is to find a franchise concept that you have passion for. This idea aligns with the saying, “if you love what you do, you will never work a day in your life. “Taquitos have always held a special place in my heart, making the concept of Roll-Em-Up Taquitos a no-brainer. For more information visit The first Taquito-Focused Franchise - Roll-Em-Up Franchise (rollemup.com) Franchising MAGAZINE USA 39

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EXPERT ADVICE: Bob Ray | Chief Operating Officer | Margaritas Mexican Restaurants

Navigating the Labor & Supply Chain Shortage: How to Rethink Your Restaurant Franchise Operation Use the pause to align the “ team, and build around your strongest staff leaders. Be a place for people to develop and become managers, and promote from within to show investment in staff development.

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Focus on your profitable daypart and own it Restaurant leaders should have an honest look the franchise business model to scrub the profit and loss statement to determine which dayparts are driving revenue, and which are not. Be bold in a decision to eliminate poor-performing dayparts.

During the pandemic, restaurants did the proverbial “pivot” out of necessity to survive, from navigating lockdowns to implementing new health and safety protocols to following mask mandates. The constant disruption and current

societal landscape has been difficult for restaurant leaders. Staff recruiting and

retention challenges, coupled with supply

chain issues that have made it problematic to receive materials and ingredients

made restaurant operations even more challenging.

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Before franchise restaurants race to change their brands to meet these growing needs, leaders should take pause to look at the franchise inside out, rethink all aspects of the model and make the necessary decisions to address labor and supply chain shortages – and, in doing so, improve efficiencies and simplify operations to strengthen unit economics. Below are ways leaders can rethink the restaurant franchise model to help employees stay engaged, happy and thriving, and the front and back-end operations efficient for delivering the brand experience to customers without disruption – all with the goal of reflecting positive sales impact.

While this may seem drastic, having staff sitting around waiting for customers to walk through the doors is wasted overheard that can ultimately hurt the bottom line. It also creates an unattractive environment to potential employees seeking a thriving atmosphere full of energy that would make them feel happy and fulfilled. For example, if breakfast is the most profitable daypart, ask yourself, “Is dinner moving the needle? Is it causing more stress on staff and operational costs than it’s worth?” After thinking that through, you might want to consider eliminating the evening daypart. Then, go all-in on breakfast and lunch with increased focus of menu and drink offerings, atmosphere and ambiance, staffing experience and profitability and ease of operations – make it an even more profitable daypart.

Prioritizing the staff’s work “ and life balance would be a unique, culture differentiator that would be attractive to new and current employees.

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means you have to tell guests you had to tweak the recipe of a favorite, core menu dish. In addition, now is not the time to source new ingredients or rollout seasonal or quarterly menus. The uncertainty of the availability of new ingredients may create unnecessary strain on front and back-end staff and overall restaurant operations – not to mention lead to guest frustration.

Consider creating a “brain trust” comprised of leadership and longtime GMs, and together visualize a successful refocusing on the most profitable aspects of your brand.

Show staff value and give time In today’s competitive employee marketplace, remaining competitive for talent has never been more vital to a restaurant’s survival. Use the pause to align the team, and build around your strongest staff leaders. Be a place for people to develop and become managers, and promote from within to show investment in staff development. Find ways to constantly create value beyond enhancing employee benefits and competitive wages, such as offering programs to help meet your staff’s needs or adding sophisticated technology to make the guest experience frictionless while also supporting their job performance and responsibilities. One “big” move to consider to improve employee morale and boost retention is to consider eliminating your least profitable day of the week. While this sounds like a drastic step, this can go a long way in employee satisfaction by removing the unpredictability of time-off in an industry with constantly changing schedules. A brand-wide locked-in day off allows your team to schedule appointments in advance,

make plans with friends and family or simply have that time to recharge. Giving the time needed to plan for personal affairs would address feelings of being overstretched or overworked felt by staff in any workplace landscape. Prioritizing the staff’s work and life balance would be a unique, culture differentiator that would be attractive to new and current employees.

Refine menu and let local lead Due to the pandemic, restaurants learned how to scale back items and be quick and agile to operate more efficiently. Now, with supply chain issues, restaurants are having to circle back and rely on that knowledge for how to operate their menus in a smaller capacity. Start by re-evaluating the menu with a profitability lens and make decisions to cut it down accordingly. Shave off dishes that require the most extra steps and those with ingredients not applied across other menu items. Even consider eliminating unnecessary core ingredients – even if that

Rely on the flexibility, creativity and tenacity of local restaurant teams – provide confidence and direction to have them do what they have to do in order to continue delivering great guest experiences on a consistent basis. Whether that’s sourcing the bulk of kitchen food items from local suppliers or being resourceful with key ingredients that can be used for a number of specialty menu favorites, empower local teams to find solutions knowing each market is different and they know the resources available. The reality is there doesn’t appear to be any indication that staff and supply chain shortages will end anytime soon. With that in mind, now is the time to take a step back to evaluate your dayparts to determine revenue impact on staff and operations, uncover new ways to provide value to staff and remain an employer of choice. It’s also an ideal time to refine your menu with the mutual support of your team to keep the guest dining experience as uninterrupted as possible. Restaurant leaders following these strategies can build stronger, longer-lasting teams and a nimbler organization able to deal with labor and supply limitations – with the end result of improved unit economics.

Bob Ray has been with Margaritas Mexican Restaurants since 1992. He progressed through multiple roles including Director of Food and Beverage, VP of New Restaurant openings, VP of operations and Director of Human Resources. In the spring of 2020, Mr. Ray became an owner and board member assuming the role of Chief Operating Officer. Franchising MAGAZINE USA 41

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HAVE YOUR SAY: MAIN Squeeze Juice Co.

Should Franchises Partner with Professional Athletes? they also work alongside the Main Squeeze Juice Co. executive team to help support our franchising and national expansion efforts. Not long after partnering with Colston, Main Squeeze Juice Co. signed its second partnership with his former teammate and Pro Bowl punter Thomas Morstead. After playing 12 seasons in the NFL, Morstead has grown very passionate about nutrition and the food he fuels his body with. When a Main Squeeze Juice Co. location opened near his home in Metairie, our juices became a stable in his diet. As a loyal customer of Main Squeeze Juice Co. and nutrition ranking as one of his top priorities, Morstead was the perfect addition our team was looking for to help educate and bring quality nutrition to our customers.

I never thought I would be the CEO of a juice and smoothie company. After years of working in the cell phone industry, I stumbled upon Main Squeeze Juice Co. and was fascinated with the menu that featured superfood smoothies, cold-pressed juice and acai bowls. While working with cellphones doesn’t necessarily transition seamlessly into blending smoothies and juicing fresh fruit, I’ve been able to apply my business experience that I learned while in the cell phone industry. By working to create strategic partnerships, Main Squeeze Juice Co. has become a pioneer for franchises partnering with professional athletes. 42 Franchising MAGAZINE USA

How It Started Main Squeeze Juice Co. began its first partnership with a professional athlete in 2018 with former NFL wide receiver, Marques Colston. Our partnership with Colston and his wife Emily actually came from our team reaching out through LinkedIn. Our message happened to come at the perfect time as the couple had just been discussing how they wished there was a healthy juice and smoothie concept. Main Squeeze Juice Co. matched exactly what they had been hoping for and the rest was history. Colston and his wife became partners with Main Squeeze Juice Co. and they continue to help the brand bring a daily source of plant-based, nutrition packed menu items with natural and quick energy to its customers. The couple is not only minority owners of the company, but

Both Colston and Morstead spent the majority of their careers in the NFL playing for the New Orleans Saints, which was an immediate attraction for Main Squeeze Juice Co., considering we are headquartered in New Orleans. With so many of our clients being dedicated Saints fans, partnering with Morstead and Colston has been an amazing opportunity for us to continue bringing convenient, healthy eating choices to our local communities. Morstead and Colston have both been very active and supportive of the brand, which has helped us continue our successful franchising journey.

What Makes Professional Athletes Great Assets to Franchising Our partnerships with Morstead and Colston have paved the way for professional athletes partnering with franchises. We are excited to be a pioneer in this area; providing unique business

If someone shares similar values “ and believes in the mission of your franchise, they can be a great asset and spokesperson on behalf of your brand.

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opportunities for athletes is a great way to help them invest their money while also helping emerging brands receive recognition on a national level. Professional athletes are the perfect partners in the franchising industry because they bring many great qualities to a business. Since they have played sports for the majority of their life, they are great at following systems, working together on a team, and also taking on leadership roles. Professional athletes typically have a lot of flexibility with investing due to their career in sports and their names can also bring a lot of attention to your brand. If a professional athlete is looking to invest in a company, franchising is a perfect opportunity due to the well-structured systems that support a franchise.

Advice for Franchisors Looking to Partner Their Brand with Professional Athletes When deciding to partner with professional athletes, it’s important to make sure they are the right fit for your company. Don’t

just settle for a partnership simply based off of their athletic career, take the time and do some research to determine if they are the right fit for your franchise. By choosing strategic partnerships that benefit both your company and the athlete, you can ensure that both parties will be happy when working together. Make sure the people you chose to partner with have interest in the company and aren’t solely focused on making money. Finding athletes that are passionate about your brand and already incorporate aspects of it into their everyday lives is a great way to create successful partnerships. If someone shares similar values and believes in the mission of your franchise, they can be a great asset and spokesperson on behalf of your brand. While not every person will fit the bill for your company, the right partnerships are out there, just be patient and find the people who are as excited about your brand as you are. Investing in franchise opportunities is a great way for professional athletes to invest their money and carry on a professional career once they retire from the game. Finding dedicated athletes who want to help bring your business to the next level is an exciting endeavor and I look forward to seeing more franchises partner with professional athletes in the future.

About Main Squeeze Juice Co. and Thomas Nieto Main Squeeze Juice Company is a New Orleans, Louisiana-based juice and smoothie bar franchise with a mission to “make healthier easier.” Its nutritionist-designed, superfoodinspired menu seeks to change the lives of those looking for a healthier and more convenient way of fulfilling their nutritional goals. The concept’s proprietary recipes feature chef-designed, dietitianinspired cold-pressed juices, superfood smoothies, juice cleanse programs, shots, and acai bowls created from organic and wildharvested acai berries from the Amazon rainforest in Northeast Brazil. Thomas Nieto has been CEO of Main Squeeze Juice Co. since 2017. Before joining the team at Main Squeeze Juice Co., Nieto graduated from Southeastern Louisiana University in 2007, went on to work for AT&T as an Area Retail Sales Manager and then became the COO of In & Out Smart Repair. For more information about franchising opportunities with Main Squeeze Juice Co., please visit www.mainsqueezefranchise.com Franchising MAGAZINE USA 43

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EXPERT ADVICE: Mark Bollman | President | Creative Colors International

Restoration Solutions Help Restaurants Cut Costs Refurbishing allows “ restaurants to continue operations with minimal disruptions while repairs are completed in house.

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picking up the phone and ordering a new seat or part for a broken refrigerator is no longer an easy or timely solution.

Refurbishing Fixes Headaches

As restaurant operators continue to cope with the financial fallout from the pandemic and global supply chain issues, they are turning to restoration solutions to help bolster customer traffic and improve their bottom line. Falling COVID numbers and the rollout of the vaccine are helping increase restaurant profits. As cities lift mask mandates and customer confidence improves, restaurant operators can see a light at the end of the tunnel. The rise of the Delta variant limited initial gains, but many operators are hopeful for high customer counts as the holiday season kicks into full swing. A majority of restaurant operators reported same-store sales and customer traffic levels above their September 2020 results, according to the latest Restaurant Performance Index by the National Restaurant Association. The RPI is a monthly composite index that tracks the 44 Franchising MAGAZINE USA

health of the restaurant industry in the United States.

Global Supply Chain Issues Hamper Growth Now that restaurants are able to put the pandemic in the rearview mirror, they are being hit with supply chain disruptions sparked by initial industry shutdowns. A trip to the grocery store and seeing all the empty spots on the shelves puts the disruptions into stark reality. Restaurant customers are becoming familiar with signs warning them certain menu items might be out of stock and long waits for car repairs are becoming the norm. A shortage of truck drivers and port congestion are taking its toll by further exacerbating supply delays. Many restaurant operators experienced supply delays or shortages of key food or beverage items in recent months, and 91 percent of operators are paying more for food. Businesses are also discovering there is a long wait for replacement parts. Simply

Restoration solutions are key to helping restaurants thrive during this difficult season. Restaurant owners are turning to companies like Creative Colors International to refurbish their dining rooms and attract new customers without breaking the bank. Refurbishing allows restaurants to continue operations with minimal disruptions while repairs are completed in house.

Here are a few repair solutions to implement to impress customers. Repair Seating. One way restaurant operators are saving money and improving the experience for diners is to make repairs to damaged vinyl surfaces on chairs and booths. Constant wear and tear frequently causes gouges, rips and cracks to seating, which can be unsightly for customers. In addition, buying new chairs or seating booths is no longer an option for restauranteurs on a budget. The supply chain disruptions are sending the price of vinyl up, making repairs a cost-effective choice. Restaurant operators are searching for alternatives to purchasing brand new seats. Many operators are discovering they can save up to 90% in costs by having a skilled technician make repairs. Technicians undergo extensive training and use the latest technology to make seamless and

les

One way restaurant “ operators are saving money and improving the experience for diners is to make repairs to damaged vinyl surfaces on chairs and booths.

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flooring when your kitchen is closed to help you prevent the high-cost of laying new flooring. There are technicians who have the tools and equipment to provide industry-leading vinyl floor repair services that save up to 95 percent in expenses by helping you salvage your flooring. Before

efficient repairs. They can even repair fading due to sun damage. As an added bonus, mobile repair workers can do the work at their restaurant after hours, so there is no disruption in regular business. Making quick repairs also prevents operators from having to close part of their dining room and the surface repairs make the seats look good as new. “We had the damaged surfaces on our seating booths repaired instead of replaced, and it was great for us in several ways,” said Jason Coursey, owner of The Catch in Oklahoma City. The Catch is a fast-casual

After

seafood restaurant with numerous locations across Oklahoma and Texas. “The process was very convenient and didn’t disturb our service in any way. By choosing to repair the booths, it saved us about half the cost of purchasing new ones.” Fix Your Floor. The floors in your restaurant see a lot of foot traffic. Between wait staff and customers, the highly trafficked areas of your restaurant’s linoleum may start to look dingy over time. Linoleum is designed to be sturdy and affordable but it is not indestructible. Companies can make repairs to your vinyl

Apply a Coat of Paint. Repainting your dining room will go a long way to freshening up your restaurant. It’s also an easy fix to give your dining room a new look. Painting is a simple task to tackle and will not require you to close up shop. Simply haul the brushes and cans out after

Restoration Reduces Carbon Footprint At a time when customers are paying close attention to the impact they have on the environment, refurbishing will help your business reduce its carbon footprint. A new survey revealed 77 percent of Americans are concerned about the environmental impact of products they buy and they want the businesses they visit to share their values. Refurbishing is environmentally friendly. Instead of sending products to the landfill, refurbishing injects new life into your existing furniture and floors. Making inexpensive changes like spiffing up your restaurant’s interior and repairing damaged flooring will help your dining room stand out and drive profits in the months ahead.

Mark Bollman is the President of Creative Colors International, the nation’s leading on-site repair and restoration franchise. www.creativecolorsintl.com Franchising MAGAZINE USA 45

EXPERT ADVICE: George Knauf | Senior Franchise Business Advisor | FranChoice

Actionable Trends in Franchising Entering 2022 George Knauf is a highly sought after, trusted advisor to many of the top franchise ownership groups in the world. With over 25 years of experience in both start-up and mature business franchise operations he is uniquely qualified to advise individuals that have dreamed of Building their own empires. Whether you have an existing portfolio or searching for your first franchise, he can help you to pursue your dreams. www.MyPerfectFranchise.com

Some are likely shorter term, others longer term so as we look at growth opportunities we need to keep in mind that one brand may have a shorter optimum investment timeframe than another.

Big trends: American families saved at a very high rate, by some accounts they have put an extra $2Trillion into savings over and above the normal saving rate during the past couple years.

This time of the year the multiunit and multi-brand owners I advise on their growth strategies are winding down the current year and call to ask what the actionable trends are coming up in the next year that they should be positioning their investments for now. 46 Franchising MAGAZINE USA

Currently operating businesses will need to adapt to trends in staffing and supply chain, in most cases these are clear and solvable puzzles, though sometimes require a little creativity from owners and franchisors. Most operating franchises have made these adjustments and are thriving today. As we look at the market there are opportunities that already existed as well as those that are trending upwards now.

They are now spending that money fast, catching up on experiences missed. That travel, dining, shopping, etc is driving the economy and inflation. There are higher costs for some goods and supplies. Employee turnover will be higher as employees are leveraging their new power from being in high demand. Entry level pay will be higher and more

be added to the list but remember they are highly cyclical so be in early and out fast. Gyms/Fitness/Wellness, especially boutique options, were strong going into Covid and are scaling up again fast. Some of the brands in this space didn’t just survive the past couple years, they thrived and added units. A lot of us are coming out of the past couple years like it was one big holiday buffet, the growth of that business could be measurable as we get active again. Home improvements are at all-time highs. Three things drive that growth. Home value increases are driving both sales and improving living space to enjoy. We are seeing companies focus in both of those directions. One franchise does nothing but prep homes for sale.

As we look at the market there are opportunities that already “ existed as well as those that are trending upwards now. ” jobs will be created at this level and in the mid tier. Those employees will have more money to spend. Stores that have to keep a lot of inventory on hand will have to plan carefully and buy further ahead. Farming has never been easy, but has been made harder due to events out of the control of farmers. What do you do with all of that? It’s time to grow. Times of greatest turmoil are where the biggest opportunities exist. As you look at the market you will see current needs that people with money and desires have. They want experiences like travel, dining out, going to the gym. They have increased home value and want to

capture it and move or just fix up what they have to enjoy their time at home more. They may have an increased focus on health and wellness. Their kids may have the need for tutoring assistance to get back on track in school. Their parents may have a need for home care if they want to avoid assisted living for a period of time. Let’s dive into some key areas and because space is limited here, I will take your calls and emails to answer your strategy questions, my info is below. Food, while always in demand I would be cautious in this category and primarily focus on fast food or quick service meal options. Full-service restaurants have challenges around real estate and staffing. In some cases frozen or baked treats can

It has always been hard to be a homeowner calling the local independent Chuck in a Truck home handyman guy. They barely resemble a business, are hard to track down, hard to manage and sometimes leave you with a bad experience. Consumers want a predictable outcome, good experience and quality work. This is a great time to look for top players in this space. More and more we are seeing the medical community try the franchising model. They are potentially as perfect for each other as chocolate and peanut butter. Choose carefully as the quality of franchisor matters, medical talent can be hired, but this space has opportunities. On the horizon we see tech companies blending with the franchise model as they discover franchisees with a vested interest in their business and local market can do more than employees or overseas call centers. There is more detail to note in these categories and other markets not outlined here. The key idea is that every market has needs and customers. If you look closely at trends and where those needs are you can find business gems that will be great additions to your portfolio. What is your success story? Let’s go find it! Franchising MAGAZINE USA 47

franchisor in depth: Kris Simonich | Vice President of Franchise Development | P3 Cost Analysts

Owning a Franchise:

Five Challenges to Consider It’s a dream of millions of Americans: Running your own business. In fact, in 2020, ambitious people launched a record 800,000 new U.S. companies, capping a decade of steady growth in new business starts. That increase in business starts clearly underscores the appeal of being an entrepreneur rather than clocking in as someone else’s employee. You might be surprised to learn that opening a franchise is one of the most common ways people enter the small business market. However, there is more to franchising than simply paying a fee to an

existing company for the right to operate under their name. As attractive as owning a franchise sounds, there are a number of things to consider before making the leap into business ownership.

Take a Realistic Approach Every year, P3 Cost Analysts brings a new slate of franchisees into our business. When we do that, we learn about the challenges that our partners often face. Everyone likely knows that starting a business requires motivation and diligence. More than that, each potential new business owner should think through the pluses and minuses of what’s ahead. In our experience, these are five of the challenges to consider.

#1: Franchises Are Expensive Even with the most well-known brand name franchise, it will take time to be profitable. Start-up expenses include the franchise fee plus costs such as labor, supplies, equipment leases, rent, marketing and much more. Bottom line is, you’ll need cash above and beyond the franchise fee to be able to start operations. At P3 Cost Analysts, even though our franchise fee is relatively low and there are few operating expenses for owners, we recommend new franchisees have at least 12 months of financial resources as a foundation to launch their businesses.

#2: Finding the Right Employees It’s no secret that right now job openings are at an all-time high. In an employees’ market, many people are leaving their current positions for better offers, consequently leaving other jobs unfilled for longer periods of time. New business owners need to consider if they’ll be able to find enough good people to do the job right, therefore it’s imperative to take a realistic look at the prospects. Because the bulk of our auditing work occurs through our headquarters, our

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As attractive as owning a “ franchise sounds, there are a number of things to consider before making the leap into business ownership.

”

it will take to figure these things out, that makes it even more difficult to accurately forecast the cost of trial and error. In the end, mistakes made within a solo business will likely amount to a much greater expense than a franchise fee.

#5: It’s Not for the Faint of Heart

Even with the most well-known brand name “ franchise, it will take time to be profitable. Startup expenses include the franchise fee plus costs such as labor, supplies, equipment leases, rent, marketing and much more.

”

franchisees typically don’t face the hiring dilemma that others do. That means they can put more focus on making contacts and generating new business. We’ve heard from many of our existing franchisees that because they don’t have to manage employee teams, they have more opportunity to develop large, recurring revenue streams. Our owners who want to realize growth while still hiring can do so largely free from the risk and exposure that traditionally comes with scaling.

#3: You’re Buying a System, Not a Brand Typically, when purchasing a franchise what you are actually buying is a proven system. Yet, many franchisees think they’re buying into a brand. However, there are only a few American brands that have broad recognition, such as McDonald’s or Starbucks. By understanding that you’ve bought a system, you have better positioned yourself to make your business a success.

Through our 30 years of developing our auditing and cost-saving techniques, we’ve seen the value of having a proven system. With that, we can transfer our knowledge to our franchisees, which ultimately gives them an advantage as they launch their business.

#4: Failure Can Be Costly Because there is a fee to become a franchise owner, many people wonder if they should instead funnel that fee into opening a business on their own for less. The problem with that thinking is that there is a cost that comes with trial and error. In our case, our franchise fee takes into account our years spent experimenting with products, marketing techniques, hiring practices and other business processes. Whereas, people who start their business from scratch must navigate all that on their own. Moreover, since it’s virtually impossible to determine the time

Sure, the daily grind of working for someone else can take its toll, but it also brings a sense of comfort and security. When you’ve got a stable place of employment, you’ve likely got the general assurance of a regular paycheck and other benefits. It can be hard to give up that predictable environment for the unknowns that come with entrepreneurship. Owning your own business means everything rests on your shoulders — a daunting collision of dreams and reality. Here’s where the potential entrepreneur must put aside fantasy in favor of a selfcheck about their ability to undertake the focus, drive and discipline required to build a successful business.

Opportunity Prevails Ultimately, owning a franchise can be a streamlined approach to being in business for yourself. From gaining the support of seasoned professionals who’ve already been down the road of starting a business to buying into a proven system of success, joining a franchise has many upsides. And, it provides an advantage for franchise business owners to realize long-term success that may elude the solo entrepreneur. If you’d like to learn more about franchise opportunities with P3 Cost Analysts, contact us by phone at 1-877-843-7579 or send an email to info@costanalysts.com. Franchising MAGAZINE USA 49

EXPERT ADVICE: Heather Ripley | Founder and CEO | Ripley PR

Using PR to grow your franchise development funnel There is no shortage of information written about partnering with a franchise public relations agency to increase your leads and point prospective franchisees toward your sales funnel. But there is one PR strategy that I recommend if your franchise wants to blow away the competition and fill your sales funnel with a lot of eager franchisees.

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The PR tactic that works? Positioning a franchise brand as a household name. As the owner of a public relations agency that specializes in franchise businesses, my team has been very successful at helping our franchise clients obtain great leads through proven PR techniques. The most challenging aspect of franchise PR, however, is creating a franchise brand presence that blows the rest out of the water. While it takes a lot of work and perseverance, when this type of PR is successful, your franchise brand will reap benefits well beyond your expectations,

and for years to come. So, how can your franchise brand become as well-known as McDonald’s? Well, while good PR can increase visibility and create an enviable image, it took a long time for McDonald’s to become iconic. Other franchise brands have followed a similar path to widespread popularity. But it didn’t happen by itself. How does PR help a franchise brand become a household name? One of the best ways to get attention for a franchise brand is through authoritative and informative articles. Potential franchisees are going to do a lot of research, and if they see your franchise

Getting your articles printed or posted online by leading “ industry trade journals and business newspapers (whether online or in print) is no easy feat. ” brand’s name and read articles written by your CEO or other executive, the repetition is going to have an effect. They’ll remember they read about your franchise or saw the franchise name. Getting your articles printed or posted online by leading industry trade journals and business newspapers (whether online or in print) is no easy feat. A PR partner with experience in franchise lead generation knows the movers and shakers within your industry, and probably knows many journalists and editors personally. The more your franchise is seen as an authoritative and well-respected source of information for the industry, the more likely potential franchisees will be impressed and follow your sales funnel. An experienced franchise PR agency will have experienced staff, knowledgeable in all things franchise, and some may have previously been journalists themselves. Because they are in constant contact with trade publication editors and business news media, they know exactly what publication staff and media want to hear. Most PR

agencies also have writers on staff, and a franchise PR agency should have seasoned writers who know what types of articles or news stories will be most likely to get published or covered. PR agency writers will interview your brand’s leaders and craft expert articles in their voice that can be submitted for publication. When it comes to the media, how does PR get your franchises’ name in the news and your story covered? It all works hand-inhand with being a valuable contributor to respected publications and online trade websites. News and trade media scour these publications for informative and well-written articles from industry experts. So, the more your articles get published

in print or online, the more visible your franchise brand will be to the media. A PR agency that specializes in franchise lead generation also has access to trade publication editorial calendars so they can tailor articles to coincide with each editorial calendar. This means the chances that your article will get approved by the publication are far greater. Using PR to drive new leads into your sales funnel is not new, but leveraging your franchise’s brand through publishing articles and pitching your stories may be something your franchise has yet to try. It can make a huge difference in your ability to close on your leads when they already know your brand and have seen or read your brand’s articles. Brand awareness goes a long way in turning franchise leads into franchise buyers.

Heather Ripley is founder and CEO of Ripley PR, an elite, global public relations agency specializing in franchising, home service and building trades. Ripley PR has been recognized by Entrepreneur Magazine as a Top Franchise PR Agency three years in a row and was named to Forbes’ America’s Best PR Agencies for 2021. She is the author of “NEXT LEVEL NOW: PR Secrets to Drive Explosive Growth for your Home Service Business.” For additional information, visit www.ripleypr.com. Franchising MAGAZINE USA 51

GLOBAL

EXPANSION

G L O B A L E X PA N S I O N

Our GLOBAL CONNECTIONS are trusted operators in their markets and will enable a smooth entry into NEW TERRITORIES.

We can help to put your franchise

system in an operational position to attract successful franchisees.

We are members of the IFA and other respected organisations. The transition process can be

daunting, but we know the trusted

business and legal players who can take you through the first minefield. Constant changes within the codes of conduct can create a massive challenge to franchise systems

wanting to move outside of their established markets.

With direct experience of the North American, UK and Australian/ New Zealand Franchise markets we have been in the business

of selling franchise systems direct to franchisees for over 35 years.

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For an initial discussion, please contact

globalpublishers@icloud.com

Feature Supplement Food and Franchising December 2021

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