february 2022
WHY SERVICE FRANCHISES WILL CONTINUE TO SURGE in 2022 goodbye fintech growthtech is modernizing main street usa latest news
in BUSINESS SERVICES WHAT FRANCHISEES NEED TO CONSIDER
WHEN LOOKING AT A FRANCHISE Franchising MAGAZINE USA 23
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Get the App COVER STORY: Business Finance Depot
MEET THE TEAM (LEFT-RIGHT)
BUSINESS FINANCE DEPOT
AJ Moore, Sales Assistant aj@businessfinancedepot.com
THE FRANCHISE FINANCE EXPERTS Paul Bosley launched Business Finance Depot in June 2006 as an equipment leasing company focused on lease equipment to the Fitness industry. In May 2013, Paul volunteered for SCORE, a division of the Small Business Administration and learned how SBA loans provide financing to new and existing business in all industries. Over time, the company has grown to include a talented group of professionals and has expanded into the Franchise and the RV Park and Campground industries. This article outlines the various financing programs the company offers and how our franchisor and manufacturing clients use the products to provide financing to their clients.
SBA 7(a) Loans This national loan program can be used to finance nearly any legitimate business purpose. The SBA offers loan guarantee which reduces the lender’s risk which, in turn, makes securing an approval more likely. These loans offer some of the lowest APR available and are amortized over the longest repayment term available. The following information lists possible uses of SBA loans and some of our franchisor clients currently using each aspect of the program. 1. Financing a Start -up Business – Yogi Bear’s Jellystone Parks, Massage Envy, F45 Training , Venture X, Jon Smith Subs, The Great Greek, Pembrooke Chocolatier, Fitness 1440 & Athletic Republic • The SBA 7(a) Loan will finance up to 85% of the total project costs including equipment, organization costs, buildout, deposits, inventory, working capital and franchise fees. 10 FRANCHISING MAGAZINE USA
• The SBA Express Loan provided working capital up to $150,000 for any business purpose and requires only business collateral! – Neighborly, Garage Living , Patrice & Associates, Fibrenew, Naturals 2 Go & Ace Handyman Services • The owners’ equity injection ranges from 15% - 30% of the total costs and cannot be borrowed money such as a home equity loan. • A resume with industry experience, transferable skills and/or related education is important! 2. Expanding an Existing Businesses – All of the Above Franchisors • Same SBA loan terms as listed above • An emphasis is placed on the profitability of the business based upon business’s recent tax returns and interim financial statements. • The SBA Express Loan provided working capital up to $150,000 for any business purpose and requires only business collateral! 3. Debt Consolidation of an Existing Business – All of the Above Franchisors • The funds are used to refinance business debt including existing mortgages, equipment leases and loans. Credit card debt is typically NOT included. • The resulting monthly payment must reduce the total monthly payments of all debt being consolidated by at least 10%. 4. Business Acquisitions – Kampgrounds of America (KOA) • The Letter of Intent must be supported by a business valuation. The valuation is conducted by the SBA lender using the seller’s tax returns and interim financial statements.
Andres Quintero, IT Director aquintero@q-tech.org Christy Bosley-Viens, Customer Service christy@businessfinancedepot.com
• If real estate is involved in the business purchase, the terms and conditions are similar to the real estate section listed below. Otherwise, the terms and conditions are the same as to those listed immediately below.
Frank Young, Director of Finance frank@businessfinancedepot.com Gary Raffensberger, Director of Operations gary@businessfinancedepot.com Louann Driver, SBA Loan & Leasing Coordinator louann@businessfinancedepot.com
Common Criteria, Terms and Conditions for the Three (3) Uses Listed Above
Marisol Cruz, COO marisol@businessfinancedepot.com
• The collateral required is all business assets.
Stephen Indictor, Director of Business Development stephen@businessfinancedepot.com
• For loans over $350,000, additional collateral is required which is typically real estate owned by the principle(s) only up to the loan $ amount.
Paul Bosley, Founder paul@businessfinancedepot.com Ken Countess, Director of Marketing kc@thecountessgroup.com
• Good personal credit (700+ is preferred)
MAGAZINE USA
• 10-year loan repayment term • No prepayment penalty • The interest rate is a variable rate. It is calculated by adding the prime rate as published in the Wall Street Journal (currently 3.25%) plus a risk premium typically 2.75% = 6% APR. • Closing Costs are typically 3% of loan amount and are added to the amount financed. Please note – new legislation indicates the SBA is waiving its loan guarantee fee for loans under $350,000 until late in 2022! • Timing to close - 90 -120 days which varies with the bank workload & responsiveness of the borrower. 5. Real Estate – Commercial Mortgages – Yogi Bear’s Jellystone Parks & Kampgrounds of America (KOA)
COVER STORY • The business must occupy at least 51% of the useable space. This provides an opportunity to sub lease the remaining 49% of the useable space. • Terms and Conditions - Same as above with the following exceptions: o Loan Repayment Term up to 25 years o Fully amortized loan repayment with no balloon payment
• The loan will finance up to 90% of the purchase & development cost.
o Prepayment penalties – range from 1-4% over the initial 3-4 years
• The equity injection is no less than 10% of the total cost and cannot be borrowed money such as a home equity loan.
o Interest Rate – Prime (3.25%) + a risk premium estimate which varies from 2% up to 2.75% = 5.25% up to 6%
BUSINESS FINANCE DEPOT
Equipment Leasing
The main benefits of equipment leasing are that the transactions are completed quickly and the collateral for the transaction is the equipment package being financed. The typical terms require a down payment or security deposit ranging from 1 lease payment up to 20% of the $ amount being financed. The repayment term ranges from 3SPECIAL to 6 years. FEATURE Once the lease is paid, the ownership of the equipment is transferred to the company leasing the equipment.
THE FRANCHISE FINANCE EXPERTS
BUSINESS SERVICES
Our company has developed leasing programs for many non-fitness franchisees Garage Living, Smash My Trash and Red Box + which require trucks or vans and equipment. We designed leasing programs
FINANCE YOUR FRANCHISE BEFORE
RATES RISE
for 3 of United Franchise Group’s storied VOL 10, ISSUE 3, FEB 2022 franchises, Signarama , Experimax and Fully Promoted. We have served as a main source of equipment leasing for fitness franchises including F45 Training , Blink , Athletic Republic, The Camp Transformation Center & HOTWORX. We also provide financing for a variety of fitness equipment manufacturers including Keiser, Promaxima & Woodway.
Unsecured Personal Loans – The Graze Craze & HOTWORX Our company works closely with an aggregator specializing in unsecured personal loans to provide working capital. These loans can be used for financing in addition to an equipment lease or for clients not interested in or eligible for SBA loans. Our team is honored to serve a diverse client base in 3 very different industries. We are poised to expand so if you want to learn more about how we can serve your business financing needs, please contact Marisol Cruz, COO at: (800) 788-3884 marisol@businessfinancedepot www.businessfinancedepot.com FRANCHISING MAGAZINE USA 11
EXPAND YOUR FOOTPRINT with MULTI-UNIT FRANCHISING
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contents
business services What’s New 26 Franchising News Announcements from the Industry
Feature Article 28 Chris Conner: Business Services Systems Are Working
Focus Feature 30 YourHomeHub: Why Service Franchises will Continue to Surge in 2022
Expert Advice
36
32 Gary Bauer: What Franchisees Need to Consider When Looking at a Franchise
28 34
36 Floris De Kort: Goodbye Fin Tech. GrowthTech is Modernizing Main Street USA
Have Your Say
30
34 Screenmobile: Screenmobile opportunities
32 30
Franchising MAGAZINE USA 25
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Express Employment Professionals Awards 66 Franchise Agreements Express Employment Professionals, the leading global staffing provider franchise, announced today that 2021 was the most successful year in the company’s 39-year history. Express achieved its first-ever $1-billion quarter in Q3 while also awarding a total of 66 franchise development agreements, including 41 resales, and selling out the Florida market. Additionally, the brand awarded 23 new offices in new and existing markets, including Detroit, Michigan; Rockford, Illinois; White Plains, New York; and Toronto, Ontario. Express’ significant franchise growth in 2021 was driven by the brand’s longstanding reputation as a leading staffing provider, putting more than nine million people to work worldwide since its inception in 1983. This year, Express has aggressive expansion plans for the U.S., targeting growth in markets such as San Francisco; Queens, New York; Long Island; Boston; Houston; Providence, Rhode Island; and College Park, Maryland, among others.
Fast-Growing Franchise System Achieves First $1-Billion Quarter and Breaks Top 25 on Entrepreneur Magazine’s 2022 Franchise 500 Throughout the year, Express continued
Franchise 500 ranking, jumping 31 spots
to be recognized as a leading global
from last year’s list, and remains the
staffing provider and standout franchise
staffing category leader for the 11th
concept. Most recently, the brand ranked
consecutive year.
#25 on Entrepreneur magazine’s 2022
www.expressfranchising.com.
A High-Level Guide to Flawless Franchisee Success
26 Franchising MAGAZINE USA
“Congratulations! You own your business and, better still, you own a franchise.
franchise owner are dedication (grit)
The franchisor sells you their proven playbook. Most give you training on sales and take care of most of the marketing. What can go wrong? Even with the “Operations Guide” and proven business templates for their particular franchise, not all franchise owners’ results are the same.
sharpen the soft skills necessary to
The main success drivers for any
same name).
and professional management skills. This book will help franchisees become Successful Franchise Owners.” The book is free to those that visit www.bellavistaexecutiveadvisors. com and sign up for our newsletter, The Successful Franchisee’s Beautiful View (YouTube channel with the
Cyberbacker Finishes 2021 Strong with Major Franchising Success Leading virtual assistance brand adds 23 territories in the US and Canada in its first year of franchising Cyberbacker – the leading provider of world-class administrative support and virtual assistant services for businesses anywhere in the world – is heading into 2022 with continued expansion around the world as virtual needs increase. The brand is broadening its presence and supporting areas across the United States, Canada, and will soon be expanding in the United Kingdom. This announcement comes at a time where more people are choosing to work at home or leave their job to pursue other avenues. Cyberbacker understands the need for convenient business support at an affordable cost and is ready to bring its services nationwide.
The brand intends to continue expanding internationally, with plans to reach a total of 48 territories sold by 2022. Recognized as the largest and leading virtual assistance platform, Cyberbacker has acquired an impressive 2,243 clients and is now seeking franchisees that have large influence networks and leadership to expand its global presence. To accelerate its rapid growth, the brand has a set goal of adding 48 territories by the end of 2022 with plans to add 48 new franchises in the new year, including new areas in Canada, the United Kingdom, United Emirates/Dubai, and South America. “With the number of people working from home rapidly growing we are becoming more relevant, it’s clear that
business owners around the globe can benefit from our services,” said Jason Stowe, Vice President of Franchising at Cyberbacker. The brand also offers a discount that takes $5,000 off of the franchise fee for veterans. For more information about Cyberbacker’s franchise opportunity, all inquiries can contact claudiogalsim@cyberbacker.com.
OPENWORKS Earns Spot Among Top Franchises In Entrepreneur’s Highly Competitive Franchise 500® OpenWorks, a national leader in facilities management, was named as one of the top 500 franchises in Entrepreneur’s Franchise 500®, the world’s first, best and most comprehensive franchise ranking. The company ranked 368th on the 2022 Franchise 500 list for its outstanding performance in areas including unit growth, financial strength and stability, and brand power. “It is an honor for OpenWorks to have been included on the very prestigious Franchise 500 list, which recognizes some of the most well-known national and international brands for their performance and commitment to franchise excellence,” said Eric Roudi, Founder and CEO of OpenWorks. “This distinction is a testament to our network of elite franchise owners who work hard to provide unparalleled quality and customer service through robust technology solutions, as well as the smart, purpose-driven growth plans that have allowed OpenWorks to
expand our scope of services, increase our footprint and seize market share during unprecedented times.” “The past year has been one of the most challenging for businesses in recent memory, which made putting together our 43rd annual Franchise 500 list more enlightening than ever,”
says Entrepreneur Editor in Chief Jason Feifer. “The companies named to this year’s list showed us how being resilient, supportive, and nimble can help navigate extraordinary challenges and also underscore the grit and innovation that define entrepreneurship.” openworksweb.com Franchising MAGAZINE USA 27
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FEATURE ACTICLE: Chris Conner | Founder | Franchise Marketing Systems
Business Services Systems Are Working The franchise market has evolved into a incredibly diverse and wide range of businesses and business segments. For so many, the market has always been associated with food service and restaurants, but today’s franchise market is almost a perfect blend of small business ideas and unique, compelling offerings which only partially consist of restaurant franchise models. This category of business service franchise systems has become more and more relevant and with the “average” franchise investor becoming more and more sophisticated, the growth in this segment seems to make sense. One might ask, what franchise brands might be described as business service brands? Business service brands include a wide range of offerings and generally are what are also called Executive Franchises. They are business models. The market segment could include accounting or bookkeeping service franchises or payroll management or one of the most significant market segments to franchise out has been Insurance with several new insurance franchise brands. These are franchise systems which are designed to attract “white collar” franchise owners who have experience in executive positions and many times have MBA’s. The business model requires a skill set and resume to make the model successful. The current trend in franchising is that many of today’s corporate refugees have been transitioning to business ownership and the franchise model is designed to support that first time entrepreneur. What makes the business services market
28 Franchising MAGAZINE USA
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
segment even more intriguing are many times the numbers. Because most of the business service franchise offerings do not require equipment or a retail space, they present an extremely low up front investment opportunity for a new franchisee. Most of the required capital is needed for the franchise fee, marketing and working capital. Usually a small office space will be needed with a basic office arrangement, many business service franchise systems can be started even from a home office location. The business
service franchise systems that have been successful and offer a franchisee value in their investment typically include a technology platform to deliver services and provide franchisees with infrastructure they wouldn’t have on their own. They also have strong franchise marketing systems in place which can be replicated easily by a franchisee. The brand is professional, consistent, there is a solid lead generation marketing platform in place and a sales process that allows a franchisee to generate business efficiently and effectively. I have
found that most business service franchise models tend to be selective in who they will let into the model and allow to become a franchisee. Our firm, Franchise Marketing Systems, works with new and emerging franchise models and I’ve been doing this work for over twenty years. In my time doing franchise development, I’ve worked with many strong business service franchise offerings and platforms. Some of the larger brands in this space include CFO Systems which is an outsourced CFO service model, Schooley Mitchell which provides technology and telecom consulting to businesses and WSI which is a technology service franchise system. One of the larger systems now has been Goosehad Insurance, a full scale insurance franchise which has recently gone public and had wide spread success in the franchise market. All of these brands
have in excess of 200 franchisees and have been able to scale into new markets successfully by offering equitable franchise relationships, strong unit economics and a unique value proposition. The average franchisee in each of these business service franchise brands is a high caliber, accomplished professional with a strong resume. In recent years and since the pandemic occurred, there has been an uptick in the business services space as more and more brands in the category have pushed into franchising to scale their model and expand into new market segments. We’ve found that the pandemic has fueled significant growth in the franchise market and the business services segment has run right alongside the rest of the franchise industry. Lloyd Forensics is a forensic accounting firm franchise which was launched by Diana Lloyd who had built
a incredible brand and in-depth business system providing forensic accounting services launched the franchise model once realizing that the market segment is way to large for her to capture market share with just company resources and franchisees could benefit from a high margin, specialty niche service business like Lloyd Forensics. In the finance segment, PS Lending, a real estate funding service provider founded by Phil Stevenson in South Florida was growing so quickly with the explosion in the residential real estate market that the franchise model was a natural transition for the firm to begin to grow into new markets and expand the brand. CoLabs Mortgage Lending Franchise is also an excellent franchise system in the mortgage lending space with incredible technology and a strong marketing system in place. Regardless of the industry niche within the business services category, the trend is absolutely real. I would offer two bits of advice, one to the potential franchise buyer considering the business services segment and one to the business services brand considering ways to expand. For the franchise buyer, the franchise model has proven to be effective in this category, don’t rule out a franchise system as a way for you to build your own business and leverage a proven business system. For the brand considering how to grow, you will never attract the quality of person, commitment to operating the business and passion for delivering your services with an employee that you will with a franchise business owner, you cannot rule out the franchise channel as a way to grow your brand. Franchising MAGAZINE USA 29
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FOCUS: YourHomeHub
Why service franchises will continue to surge
in 2022
Kathleen Kuhn has more than 35 years of experience in real estate and home services, with an emphasis on franchising. She joined MooveGuru in 2021 to expand the company’s consumer services and help launch the YourHomeHub franchise offering. In October 2021, Kathleen was named President of MooveGuru, the first female president in the company’s history. Learn more at YourHomeHub.com. know some of the market trends. Based on my experience in this industry and current vantage point, here are several trends to be on the lookout for in the year ahead.
A rise in tech-focused franchising opportunities The franchise industry as a whole witnessed some of its most substantial growth in a long while in 2021, fueled by an economy rebounding from the initial shock of the COVID19 pandemic and a growing number of professionals making life-changing decisions to make a professional change. Career moves were quite common in 2021—we all read and heard the news stories of the Great Resignation taking place every month in the U.S. as millions of people left their jobs for greener pastures elsewhere. A similar trend ensued in other parts of the world. The mass exodus went beyond switching jobs; tens of thousands chose to become business owners and invested in a franchise 30 Franchising MAGAZINE USA
concept. Service franchises, particularly in the home services sector saw solid growth. This expansion is no surprise. From a business perspective the appeal of a service franchise has been elevated due to the pandemic. Quick serve restaurants and many other brick and mortar businesses continue to struggle more so than service sector. And our homes have become more critical over the past few years, in part because we’ve spent more time at home during economic shutdowns, remote learning and a shift to working from home. Besides that, the real estate market has been on fire in many parts of the U.S. National home prices increased by nearly 20% in 2021 compared to 2020. Some markets like Phoenix and Boise, Idaho, were significantly higher. If you’re a home services franchise owner or looking to invest in one, you want to
Technology, as it has done in every other industry, has significantly changed how franchising works. Franchise systems can manage their entire brand on a single dashboard; franchise owners can do the same with their units’ marketing, sales, and operations. Taking that a step further, there’s a future where more and more franchise brands are tech-first in their actual model, not just the way they operate on the backend. Take, for example, what we’re doing at MooveGuru: We have launched YourHomeHub. This “everything home” tech hub allows homeowners to manage both the home’s financial details and physical elements. From real estate agents to mortgage officers to savvy marketers or sales experts who want a work-from-home business, franchise owners operate the tech-first franchise, selling their services to real estate agents who provide it for free
to consumers. YourHomeHub is the first property tech—or, “proptech”—franchise on the market, and it is exploding. We’ve sold out twenty states in less than six months, and we’re just now launching the consumer product at YourHomeHub.com. The impact we’re having in our space could also happen with other service franchise sectors. Tech-first franchises in the B2B space could help business owners learn how to better run or manage their business through a platform; it could help people make investments and provide useful tech solutions for healthcare. Essentially, any tech platform could become a franchise. Franchising is essentially a business expansion model. Rather than hiring a large pool of sales associates, a Tech Franchise empowers local owners, who are highly invested and qualified, to own the platform, providing them with the training and support to market and support relationships in their territory while being their own boss.
Growth of ancillary models that support the homeowner at multiple levels When real estate is good, and values are up, consumers who own those homes have the confidence to do renovations in their home; others have the confidence to sell and buy knowing that they have a lot of equity in their current home. This positive growth in real estate is fueling home service franchises and will continue to do so in the year ahead. Smart, savvy investors are taking note and
buying franchises in the home services industry. Not only that, home service franchises have become a hot commodity for franchise conglomerates looking to add to their portfolios. The beauty of home service franchises can be both personal and financial. Lower start up investment is appealing and the ability to build long-lasting relationships serving homeowners and their community is personally rewarding. Having an ongoing relationship and multiple touchpoints with a customer is a dream come true for business leaders, and home services provide just that. We considered this holistic approach when developing YourHomeHub. Consumers can monitor extensive information about their home and local market conditions, store important documents, generate accurate estimates for home repairs and find a local contractor for over 1,000 different home service categories. The platform also offers a reliable home value estimates that are more accurate than common online sources. Homeowners can get alerts on real estate activity in their area, maintenances reminders specific to their particular home and search the resource library for advice on everything from running a successful garage sale to ice damn prevention.
Service professionals buying franchises as an add-on for their portfolios Multi-unit franchise ownership is nothing new to franchising. And owning several different franchise brands within your portfolio isn’t either. However, we’re seeing
more and more service professionals buying franchises as add-ons for their portfolios. The early interest in the YourHomeHub franchise comes primarily from real estate brokerages looking to add on to their existing business and create a new pipeline for revenue. Mortgage and title companies and mortgage brokers are also interested in the model. With these add-ons, it makes sense to think outside the box about how you structure the franchise. For example, we have implemented what we are informally calling a “reverse royalty” structure. We are paying franchise owners every month for their revenue through YourHomeHub subscriptions. Our franchise pays 10 to 20 percent of net subscription to franchise owners (rather than the owners, as is customary for franchises, writing us a royalty check every month). This makes adding our model even easier for an existing home and professional services business. Any franchise looking to become even more attractive as a low-cost, high-value add-on business model should think outside the box regarding how your franchise is structured. We see the positive impact of that already. As we look ahead into the remainder of 2022, we’re incredibly excited about what’s to come in the service industry within franchising. You should be too! There’s a lot of positive trends on the horizon. Be innovative and be courageous. If you’re those two things, be prepared for rapid growth this year. Franchising MAGAZINE USA 31
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expert advice: Gary Bauer | President | JAN-PRO Cleaning & Disinfecting
What Franchisees Need to Consider When Looking at a Franchise Franchising is a great business model but that does not “ mean all franchises are created equal. Finding the right brand, goes beyond financial opportunity and often encompasses culture and resources.
”
Unit level economics Unit level economics describes a specific business model’s revenues and costs in relation to an individual unit. It’s critical that a prospective franchisee has realistic expectations when it comes to developing a license territory. Franchisees should review the item 19 of the Franchise Disclosure Document (FDD). The franchisor cannot make earnings representations that are not included in item 19 of the FDD. Existing Franchisees are a great source of information and a list of existing franchisees. Item 20 of the FDD will be helpful in finding contact information of existing franchisees.
The cost of the total investment not just the cost of the license The FDD for a franchise opportunity will clearly list the range of cost to license and open a location. Item 5 will outline initial costs while Item 6 will include royalties and other fees. Ongoing operating capital, real estate, insurance, and funds for salaries are just a few additional details that will come up and many are covered in Item 7 of the FDD. The best way to gain a better understanding of these costs is to connect with members of the franchise development team or reach out to existing franchisees. 32 Franchising MAGAZINE USA
From April 2020 to present, Gary has been the Brand President for JAN-PRO Franchising International, Inc. and JAN-PRO Enterprises, LLC. From October 2016 through March 2020, Gary served as Operations Manager of Orkin Pest Control. Gary served as CEO of BDRY Systems from September 2015 to May 2016. From September 2000 to August 2015, Gary served in various senior executive roles for the AmeriSpec, Furniture Medic, ServiceMaster Clean and ServiceMaster Restore franchise brands, including serving as Chief Operations Officer of the ServiceMaster Franchise Group from March 2012 to August 2015.
Territory demographics Territory demographics are imperative to consider when opening a franchise as the concept may not perform as well depending on the territory demographics. Demographics can vary ranging from something as simple as population to more complex criteria that take into consideration single family households, income ranges or business counts related to the concepts’ target customer. When looking at different territories, prospective franchisees must determine “Do the territory demographics align with the business?” A lawn care franchise in a downtown metro area might not be a good fit even if population would make the territory attractive on the surface. Similarly, an urban territory might be less than ideal for a commercial cleaning territory. What is key is not only knowing your target customer but understanding how key territories demographics align with the customers you will be targeting. In addition to considering territories and demographics, franchisees must consider additional factors that could further impact their decisions such as accessibility, the local economy, and more. Also consider if the territory is exclusive and if the franchisor has the ability to operate a company owned location in the territory.
Source of customers In entering a new territory, depending on the franchise’s reach, prospective customers may be unaware of the concept and why they should purchase from your new franchise. Franchisees need to consider how they will acquire customers. Will they invest in advertising? Sales? Marketing? Cold calling? While many franchisors offer support in this area, should they not, franchisees will need to
think through and designate who will be in charge of these responsibilities.
Strength of the system Determining if a brand is established or a startup concept will help you determine the strength of its system. While established brands offer a concise system that has proven success, startups offer a system that may be working although not have the reach of a more established brand. In addition, researching a brand’s system will allow franchisees to understand additional crucial information including franchise turnover, if franchisees are able to sell their business when ready, and more. Item 20 of the FDD will list new franchises opened, terminated, transferred, and closed for the last 3 years and is a great place to start in understanding this. Also, in making calls to existing franchisees one should inquire about the strength and stability of the system from a franchisee perspective.
Support structure and background of the leadership team The majority of franchise systems will be prepared to help their franchisors succeed, though how each franchisor approaches that differs. It is important for franchisees to inquire how they will be supported in the process of opening their business. This can include anything from operational support to locating real estate. Additionally, the members of a franchisor’s leadership team are incredibly important. Many franchises seek individuals with a robust background in franchising offering knowledge and experience in the category and positioning franchisees for success. It is important for franchisees to inquire who is on the leadership team and how they will be beneficial to the franchisee’s business.
Read the franchise development deal (FDD) and franchise agreement A lot of meaningful information lies within the Franchise Disclosure Document (FDD) including the franchise agreement. These documents can detail key information including what kind of ongoing royalty do you have to pay and whether or not it can it change. They discuss if there are other required fees such as technology and advertising, conference attendance, and if you required to use certain materials, products, or equipment. In addition, they can explain what types of legal proceedings are disclosed by the franchisor. Perhaps most importantly, these documents discuss what the term of the agreement is, how to renew or extend theses terms, and what the process of selling or exiting the franchise system entails. While they may be lengthy, it is critical to read and understand the Franchise Disclosure Document and the franchise agreement contained within!
Call or visit existing franchisees Positive validation of the system is one of the best indicators you can get. Connecting with a handful of franchisees within the system and understanding their journeys is incredibly insightful. Whether the franchisee may have a similar lifestyle or not, their stories can shine a light on the leadership team, trainings, processes and more. Additionally, existing franchisees can shed light on their day-to-day operational experiences and the triumphs and challenges of running their own business in the category. Most importantly, I encourage that you ask them if they are satisfied and if they would do it again?
Don’t make a quick decision This might be the single biggest event that impacts your life financially. Franchising is a great business model but that does not mean all franchises are created equal. Taking the time to do your research and ensure that your franchisor aligns with your financial and personal goals is crucial. Finding the right brand, goes beyond financial opportunity and often encompasses culture and resources. Franchising MAGAZINE USA 33
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HAVE YOUR SAY: Screenmobile
ScreenMobile Opportunities Some of Screenmobile’s top capabilities include:
Looking for an opportunity to join the number one mobile franchise in the country with a scalable and profitable business model within the $457 billion home improvement industry? Look to Screenmobile. What is Screenmobile? Known as America’s Neighborhood Screen Stores® and headquartered in Thousand Palms, California, Screenmobile is the nation’s leading mobile screen service franchise. Established in 1980 as the world’s first network of mobile screen professionals, Screenmobile manufactures, installs and repairs screens for residential and commercial customers across the country, without the need to operate out of a warehouse or manufacturing center. The brand’s extensive capabilities go beyond traditional window and door screening, containing a variety of premium outdoor lifestyle products including garage screens, motorized roll downs, sun control products and more. 34 Franchising MAGAZINE USA
• You Call, We Screen: Screenmobile measures, manufactures, and installs screens for windows, doors, porches, patios, and more on-site and at the convenience of their customers. All a customer has to do is call and Screenmobile will do the rest. • Any Need, Any Place, Any Screen: Whether a customer has a simple window screen that needs repair, or a builder needs 100 patio enclosures installed, Screenmobile’s professionally trained technicians will be there to answer the call. Any Need—big or small. Any Place—whether a condo, house, school or commercial building, etc. Any Screen—the Screenmobile team is made up of experts at whatever product a customer is looking to have installed.
Wondering what sets Screenmobile apart from other franchise concepts? Some key differentiators: • No Competition: As a nationally recognized brand with a proprietary “mobile workshop” model, Screenmobile has no national
competition. Their business concept hasn’t replicated by any national competitors in nearly four decades. • Family-Focused: As a family-owned company, Screenmobile places a high value on family. In fact, we treat our owners like members of our own family. This has led to 100+ Franchise Owners who highly recommend the business. In addition, we have an industry-leading 99% renewal rate once our 10-year franchise contracts expire. • Great Growth: There are currently over 100 franchise owners operating over 140 licenses throughout the U.S. and Screenmobile is continuing to grow. Servicing residential and commercial structures, the company has seen a growth in customers and continues to expand its franchise portfolio. • Low Overhead/High Potential: Screenmobile’s innovative truck-andtrailer model allows the company to keep overhead expenses low for franchise owners while delivering consistently high-quality products and services to loyal clients. The result? A simple-to-operate business with a potentially quick—not to mention substantial—return on the original investment.
Previous experience in “ the window screen repair or home improvement industry is not a requirement.
”
• Industry-Recognized: Screenmobile’s rapidly growing concept has been ranked highly on the Entrepreneur Franchise 500 multiple years, has received multiple industry awards, and the company continues to climb the ranks across multiple platforms and outlets. • Owner Controlled: Though business hours are from 7am to 5pm, franchise owners are not stuck working ten hour days. Screenmobile prioritizes flexibility and encourages every franchisee to have a healthy work-life balance. • 100% Approval: 100 percent of Screenmobile’s franchise owners report that they are satisfied with their Screenmobile experience.
How to Get Started with a Screenmobile Franchise Screenmobile has created a niche segment within the service brand industry, providing extensive products, services and capabilities that can fulfill a wide-range of residential and commercial property needs. Successful franchisees will align closely with the company’s values of honesty, fairness, and trustworthiness and have a firm commitment to bringing high-quality, affordable service to the members of their communities.
Some of the top qualities of a successful Screenmobile franchise operator include:
partnerships with every franchise owner
• Mechanically Inclined: A successful franchisee with be good with their hands, where it comes from a professional background of mechanical engineering or just tinker hobbies.
marketing, and increased brand awareness
• Community & Family Focused: Place a great deal of emphasis on family life and giving back to the community? Screenmobile is a great fit. • Business Savvy: Successful operators don’t need to have a corporate background but do need to have a thirst for a job well done and a knack for running a business. • A Love of the Outdoors: Screenmobile franchise operators were not meant to sit behind a desk all day. Successful operators love being outside and will spend a good chunk of their workday in the elements. • Organized & Reliable: Successful Screenmobile franchise owners run on efficiency and precision. Tidiness, organization, and punctuality are other major characteristics of top operators. The corporate team at Screenmobile is dedicated to responsible, lasting, honorable
and they pledge corporate support via
progressive leadership, continual training, and expansion.
Franchise qualifiers and details include: • Screenmobile’s franchise fee is $39,500 and is based on the availability of
$30,000 in liquid capital and a high credit score.
• Potential candidates must demonstrate liquid cash availability and a net
worth of $100,000 or more. The total
Screenmobile investment begins at about $90,000.
• Qualifying candidates receive a $2,500 veteran discount off franchise fees for active-duty or veteran status in the United States military.
• Previous experience in the window
screen repair or home improvement industry is not a requirement.
Screenmobile is currently seeking single and muti-unit operators to join in the
brands expansion across the United States. For more information about franchise opportunities, call 760-835-1165 or visit www.franchise.screenmobile.com Franchising MAGAZINE USA 35
b us i n e s s s e r v i c e s fr a n c hi s i n g fe at u r e
expert advice: Floris de Kort | CEO | Xplor Technologies
Goodbye FinTech GrowthTech is Modernizing Main Street USA American entrepreneurs are energetically passionate. Small and medium-sized business owners that make up the heart of America’s local communities are driven by a love for their work – not the day-to-day business operations. Theirs are the businesses Americans use daily for the things that keep their lives running, from fitness workouts to childcare, home repairs or dining at a favorite restaurant. By engaging with local communities on a recurring, arguably more personalized basis, SMBs can create a much closer connection with their customers when compared to 36 Franchising MAGAZINE USA
larger enterprise companies. The growth and success of local SMBs is a mutually beneficial opportunity, positively impacting both the businesses and the communities they serve. COVID-19 presented more challenges for businesses than we could have ever imagined. As we all adapt for the future it’s important for businesses of all sizes, whether single unit or franchise, to be thinking about how to automate more workflow, attract new customers, and access the insights needed to spot new business opportunities quickly. So what can franchise-aspiring businesses do to meet the growing demands of a digital-first world? With the right support, any successful small to medium sized
business can become a successful franchise that meets the convenience-driven, instant gratification customer of today. The right support is more than just software, it is the innovative technologies which will help to grow your business. I call this GrowthTech.
Building modern solutions For any business trying to scale, investing in the right technology to deliver an exceptional customer experience is one of the most important business decisions you’ll ever make. Over the last decade, the rise of Software as a Service (SaaS) solutions has created an array of tech options for small businesses, with solutions for enabling business automation, seamless payments, and consumer engagement. The
Floris de Kort is an international fintech leader with over 20 years of experience in SaaS and payments. As CEO of Xplor Technologies, Floris is passionate about investing in people and culture, and has a strong track record of making companies amazing places to work by building great teams. Xplor offers enterprise-grade SaaS solutions and a global, cloud-based payment processing platform for SMBs in fast-growing ‘everyday life’ verticals: Childcare & Education, Field Services, Fitness & Wellbeing, and Personal Services.
Stimulating demand in a changing landscape More and more industries are moving to subscription business models, to meet changing customer preferences. How can SMBs keep up? GrowthTech can help, with tools to stimulate demand: • SaaS that’s tailored for your industry that creates a smooth, easy, rewarding customer experience • Embedded payments which cater to emerging consumer preferences like Buy Now Pay Later and mobile wallets • Client Relationship Management features to easily stay in touch with customers • Marketing automation tools to quickly generate new enquiries • Apps to deliver real-time consumer engagement and create meaningful interactions with customers • Marketplaces and aggregator website listings can also be invaluable for reaching new customers. market has adapted to meet this demand, via software companies who also act as
payment facilitators (Payfacs); payments providers using Independent Software Vendors (ISVs) to sell their services;
and technical integrations which allow businesses to add new functionality to management systems.
With this, the lines between SaaS and
FinTech providers is blurring. This shift has been most clearly seen across the
U.S., yet in markets outside of the U.S.,
this trend is only just starting to emerge. Choosing and implementing the right
technology for your business might seem costly and complex – but GrowthTech solutions are worth investing in.
Automating workflow, saving time Built-in workflow automation features now allow businesses to auto-send emails or text messages to customers; control the schedule and dispatch of service teams; and even auto-chase late invoice payments. For example, mechanical contractors (such as HVAC engineers or plumbers) using cloud-based GrowthTech spend up to 50 percent less time on accounting and reconciliation and can save over 20 hours of admin per week, while childcare center owners are using GrowthTech to fill empty places, auto-manage waitlists, and provide virtual learning options for children. Innovative GrowthTech frees up time to engage with customers on a personal level, provide employees with more rewarding
roles day-to-day and creates that highquality service experience which keeps customers coming back.
Tracking performance, increasing revenue And GrowthTech goes further than automated workflows, better customer engagement and retention. Intuitive data analytics and reporting dashboard solutions can also help SMBs track revenue performance, assess risk, and visualize growth in real-time – across single and multi-site locations. We’re seeing fitness studios using actionable data insights tools report a seven percent uplift on conversion rates and have reduced disengaged customers by over 22 percent year-overyear.
GrowthTech: The future This new era of all-in-one business management software – with embedded payments; CRM, demand generation and marketing tools; consumer apps and marketplaces; as well as data, analytics, and reporting – means that SMBs are finally gaining the competitive edge they need. GrowthTech is making enterprise-grade software available and affordable, so if you’re not revaluating your business technology needs in 2022 to future-proof your business, then perhaps you should. Companies using the right GrowthTech tools, tailored for their specific industry, will be the ones that thrive. These entrepreneurs will have more time to spend focusing on the inspiration for their company – the reason they started a business in the first place – while customized software takes care of the rest. With the right GrowthTech in place, a successful small business now has a path to become a successful franchise. Franchising MAGAZINE USA 37
