FranchisingFeature health, beauty & fitness
may 201 9
Good Business Can Be Beautiful
Athletes in Franchising: What Franchisors Need to Know
More Than a Workout:
Finding Franchisees in Your Membership Base
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what’s new!
Kika Stretch Studios Opens New Locations in Dallas, Texas And Summit, New Jersey Kika Stretch Studios, the home for The Kika Method - which a form of passive stretching in which an external force exerts upon the limb to move it into the new position, has announced the opening of two locations in Dallas, Texas and Summit, New Jersey.
Kamari Aykes Debarbieri. The address is: 447 Springfield Ave, Suite #S8.
At Kika Stretch Studios, their stretch coaches are thoroughly trained in their own original techniques of unlocking flexibility. Their clients are measured and receive “stretch age” that tells them how old they are in Kika’s stretch years. This is, then, tracked over time as you achieve more flexibility.
They both be offering: one (1) free 45minute session for all those who attend their grand openings.
The Dallas location of Kika Stretch Studios is being opened by franchisees Erin and Whitney Youngblood. The address is 3090 Olive Street (inside of the new WeWork scheduled to open May 1)
The opening of these two locations join existing locations in: Short Hills, Westfield, Montclair, Morristown, New York City, and Englewood.
KIKA brings a new and exciting experience to a customer and franchise buyer, with a boutique stretching facility that was created for people who are looking to achieve mental clarity, move with ease, reduce stress, improve flexibility, or release tension. Through franchising, the company plans to expand regionally and then nationally.
The Summit location is being opened by
kikastretchstudios.com/franchise
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Slater’s 50/50 Debuts Two New Shroomin’ Onion Burgers
Slater’s 50/50, the popular meat-centric gastropub concept best known for creating the Original 50/50 burger patty made with 50% ground bacon and 50% ground beef, has introduced two new menu items that will be available through June 30, one of which is a completely vegan burger. Slater’s 50/50 sees the new vegan burger option as a way to continue delivering on that promise of masterfully transforming plant-based ingredients into inconceivable, outrageous, and uniquely ‘slaterized’ dishes that still pack a punch of flavor. The Vegan Shroomin’ Onion Burger is made with two umami-marinated portobello mushrooms, topped with sautéed mushrooms, caramelized onions, crispy onions, roasted red peppers, vegan garlic aioli, pickled jalapeños and arugula on vegan bun. It’s meatier counterpart, the 50/50 Shroomin’ Onion Burger, features Slater’s signature 50/50 beef and bacon blend patty topped with sautéed mushrooms, crispy portobello mushroom, caramelized onions, crispy onions, roasted red pepper, chipotle mayo, smoked gouda and arugula on brioche bun. Both the Vegan Shroomin’ Onion Burger and 50/50 Shroomin’ Onion Burger will be available through June 30 at all California, Nevada, and Texas locations. For more information about Slater’s 50/50, visit www.slaters5050.com.
MUSE Global CEO to Speak at Sustainable Brands Conference in Paris MUSE Global, an innovative early childhood education franchise founded by James Cameron, Suzy Amis Cameron and Rebecca Amis, announced today its CEO Jeff King will be speaking at Sustainable Brands Paris, a conference considered to be Europe’s largest event focused on sustainability and innovation. MUSE Global, which began offering franchises across the U.S. and globally in fall of 2018, will be making its first appearance at the three-day conference to be held April 23-25. King will participate on a discussion panel focusing on “building an economic and social world that benefits everyone.” He will specifically be speaking on the topic of “How do we give the next generation better assets to succeed (where we’ve failed)?”
“MUSE School, and ultimately MUSE Global, were founded with the idea that building a better world begins by teaching children both inner and outer sustainability at an early age,” King said. “Many people are just now coming to the realization the earth is in dire straits, and that climate change, deforestation, pollution and other issues are truly ravaging this planet. We believe, however, that the next generation can be taught early on how to live more environmentally conscious lives and remain aware of how their actions affect the world around them.” MUSE Global schools are the first in the U.S. to offer a 100 percent organic, plant-based lunch program, and they offer specialized courses such as Seed-to-Table, Climate Change and Sustainability to encourage a more sustainable lifestyle among students.
For more information about franchise opportunities or enrollment at MUSE Global School, please visit www.museglobal.org.
Juice It Up! Joins Feeding America Riverside | San Bernardino in the Fight to End Hunger Juice It Up!, one of the nation’s leading handcrafted smoothie, raw juice, and superfruit bowl chains, has announced its corporate partnership with leading hunger-relief organization, Feeding America Riverside|San Bernardino (FARSB). Juice It Up!’s aptly dubbed “Feed It Up!” campaign will reward guests for donating to the cause! “We are proud of our amazing franchisees who jumped at the opportunity to support their communities and further FARSB’s indispensable work in the Inland Empire,” said Milena Rimassa, Juice It Up!’s Director of Marketing. “We’re thrilled to exercise our company’s core values of corporate citizenship and are committed to making a positive impact in the areas we serve.” With food collection boxes at each of Juice It Up!’s 45 Inland Empire locations through December 31, 2019, the company will reward guests who donate five canned items with a $2 coupon to use on any Juice It Up! menu item. The FARSB program will eventually be rolled out to all Juice It Up! locations nationwide. “With generous partners like Juice It Up!, who take on our mission with a sense of ownership, we are able to provide hunger-relief services and emergency food assistance to those who need it most,” said Lori Butler, Philanthropy Director for FARSB. “We feel fortunate to align with Juice It Up! and look forward to working together in achieving our mutual goal to alleviate hunger in the Inland Empire.” To find your nearest Juice It Up! visit www.juiceitup.com. To learn more about FARSB, visit www.feedingamericaie.org.
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what’s new!
Seva Beauty® Gives its Franchisees Price Autonomy
Daphne’s Debuts New Menu Items as Part of Larger Rebranding Efforts Daphne’s, the fresh and wholesome fast casual known for its nourishing and healthy Mediterranean-inspired offerings, is embarking on a journey to regain footing in a crowded fastcasual segment by rebranding its image to appeal to a new, younger generation of restaurant-goers. The 30-year-old brand has revitalized its menu to focus on contemporary dishes that highlight trending ingredients and can be customized to fit modern day diet and lifestyle preferences. Daphne’s is entering four new markets and two new states in 2019, and will also be strengthening their hold in existing markets with the opening of new locations in Southern California. The brand’s menu changes were spurred by guest feedback and industry trends that show an increased preference in healthfocused dishes and customizable menu options. Trending health foods and ingredients will be the focus of Daphne’s quarterly limited-time offers, with turmeric being the main focus for the brand through June 30. “Daphne’s has earned a reputation for its healthy and thoughtful fare over the last three decades, but we wanted to take the menu to the next level by adding in trending, buzzy ingredients like turmeric and seasonal seafood, which are largely unseen in our fast casual competitors,” said Michael Nakhleh, President of Daphne’s parent company, Elite Restaurant Group. “Unveiling a newer, contemporary menu perfectly aligns with the timing of our expansion and rebrand, and as we continue to grow into new markets across the U.S., we’re eager to introduce Daphne’s healthful offerings to new communities.” For more information about Daphne’s, visit www.daphnes.biz.
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Seva Beauty® is constantly raising the bar in the franchise world. The beauty brand, who has been the protagonist to recent key events, has also made official that they have given their Franchisees price autonomy on their Service Menu. The last months have been busy for the company. New business partnerships with iconic record breakers like Simon Property Group and IKEA and new sleek and modern Studio design are just a few of the items in Seva Beauty’s strategic to-do list. The brand is also making changes in its business structure to continue offering competitive alternatives to their Franchisees. One of Seva Beauty’s Franchisees expressed “Having the ability to adjust prices has been very favorable. It’s given me more flexibility and freedom. Plus, we’ve seen a considerable increase in sales.” Recently, experts have said that they expect the franchise industry to continue to be impacted by Seva Beauty’s plans for the near future. “Giving our Franchisees options is one of our priorities. We want them to feel empowered to manage their Studios.” expressed Vas Maniatis, Seva Beauty’s founder, and COO. Seva Beauty® is the pioneer of the “Fast-Casual Spa” offering services such as Brow Shaping, Lash Extensions, Brow Tinting, Facials, and Makeup. Most services can be performed in 15 minutes or less. Seva Beauty® currently operates in 29 States and Puerto Rico. Today, Franchisees can join a company that has a proven track record and a mission of bringing Beauty to the People®. For more information visit, www.sevabeautyfranchise.com.
Tropical Smoothie Cafe® Continues Aggressive Expansion in Texas, Targeting Dallas-Fort Worth Tropical Smoothie Cafe announced its aggressive franchise development plans for the Dallas-Fort Worth area, and is seeking qualified entrepreneurs to open new restaurants throughout the market. The company has achieved compounding success and substantial nationwide growth evidenced by, among other things, increasing average unit volume across the system, recognition amongst top industry awards and seven consecutive years of positive same-store sales growth. Currently, franchisees operate nearly 50 locations across the state of Texas, with 11 cafes open in the Dallas-Fort Worth area, and another four expected to open in the market before the end of 2019. In addition to Dallas-Fort Worth, the brand is continuing to aggressively develop throughout the state with franchise
opportunities in Austin, Houston, and San Antonio. Tropical Smoothie Cafe’s food and smoothie franchise system experienced an impressive surge in nationwide expansion in 2018, celebrating the opening of 110 cafes, including its milestone 700th opening, and the signing of 191 franchise agreements. The company is looking to add qualified franchisees to its growing brand and currently has franchise opportunities throughout the U.S. Interested candidates should have business experience, along with $125,000 in liquid assets and a minimum net worth of $350,000. Candidates that meet these preliminary qualifications will need to make an initial investment ranging between $222,095 and $569,335. The better-for-you food franchise currently
boasts an average unit volume (AUV) of more than $681,000 – the highest in the company’s 21-year-history – with the top 50 percent reporting an AUV of more than $873,000. For more information visit www. tropicalsmoothiefranchise.com.
Lean Kitchen Company Announces Franchise Opportunities in Billion Dollar Industry Lean Kitchen Company is currently looking for franchisees throughout the United States. Lean Kitchen is a company that simplifies eating healthy by offering delicious, fresh, prepared meals. They are one of the fastest growing meal prep franchise companies in the country – with all their meals being made from scratch, never frozen and have no added preservatives or sugars. They are looking for aspiring entrepreneurs, food enthusiasts, and fitness experts to cash in on the meal prep industry, which is currently around $5 billion and will become one of the fastest growing industries in the coming years (as it is expected to double within the next five years). The company offers everything from breakfast, lunch and dinner options to smoothies and even healthy kids’ meals. The franchise model is extremely scalable and allows for fast, inexpensive growth in comparison to traditional franchising models. As a franchisor, Lean Kitchen Company will provide guidance throughout the entire buildout and planning process, the development of your first location, and in the on-going operation thereafter, to make the process as seamless as possible.
In April, the company finalized a multi-unit deal that will bring at least seven locations to the major metropolitan Kansas City area over the next few years. The entire Lean Kitchen model is built with the franchisee’s success in mind. They are the only franchising meal prep company in the country that teaches their franchisees how to operate their own kitchen & maximize profits for the store owner. For more info, please visit leankitchenco.com/franchising.
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Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
he beau fit The use of social media has brought a whole new exposure to the world of Health, Beauty and Fitness. Advertising is readily accessible through popular accounts, including social media experts in beauty and fitness gurus who have gained a large platform. This new field of presentation allows businesses to grow a brand to new audiences with the potential to share posts repetitively. An advertisement that goes viral is essentially free marketing. It’s estimated that over 244 million Americans use social media in 2018, meaning nearly 70 percent of people in the country have at least one account. It is said that an adult spends over 3 hours per day on their mobile device - a marketer’s dream come true. Social media has allowed the everyday person to see potential in health, beauty
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and fitness in a whole new light, and reach opportunities that may have not been accessible before. Franchisors can take advantage of these numbers and enjoy the profits of the many opportunities in the Health, Beauty and Fitness industry.
Beauty Cosmetics Cosmetics has made a resurgence in the last few years. Not that the makeup industry has made an exit but it’s expanded
audiences through social media and YouTube tutorials. Makeup has become more acceptable to a wider audience and has a wider variety of products. Franchisees can cash in on this opportunity in a variety of ways- including exclusive makeup retail stores. These are usually located in a mall within its own location or possibly through a kiosk. It’s a market that is well on the rise. In 2017 Zion Market reported that the cosmetic
“Social media has allowed the everyday person to see potential in health, beauty and fitness in a whole new light, and reach opportunities that may have not been accessible before.”
ealth, uty & tness
Feature market was valued near 532 billion dollars and expected to reach approximately 863 billion by 2024. Soap What may seem like a small business opportunity is in actual fact one of the leading retail products out there. There are franchise opportunities mainly focused on just soap. From environmentally safe to classic hand soaps, it’s a product Americans are paying for more so than other beauty products.
“There are franchise opportunities mainly focused on just soap. From environmentally safe to classic hand soaps, it’s a product Americans are paying for more so than other beauty products.”
Specific retail markets are competing with well known name brands sold in large box stores. However some stores have a variety of soap products and entice people to buy more once they step foot into the business. The liquid hand soap industry alone generated sales of over 360 million units in 2018, according to Statica. Although it’s such a specific niche, the numbers are there to prove soap’s great potential. One should ask if this specific industry will continue to remain on trend as a one-stop shop before investing. Hair Salons Hair salons are a different type of beauty industry, with a whole other world of competition. There are over 86 thousand salon locations in the US, with a lot of them mainly being a personal business. Consumers have a tendency to shop for stylists, rather than location- so a franchise would have to stay focused on talent and hiring to step up their game. Hair salons’ profit is 15 percent product based, and a franchise would stock a lot of the expensive and wanted products on the shelves. Most small salons carry less retail, which makes it less competitive. A resurgence in small local barber shops could also be a slight competition, but the franchising world has honed in on that particular industry and offered similar locations to adhere to those consumers’ needs.
“Consumers have a tendency to shop for stylists, rather than location- so a franchise would have to stay focused on talent and hiring to step up their game.” Franchises also have a brand name and reputation to fall back on – consumers can find consistency and reliability by stepping foot in any two of the same salons. There isn’t a necessity for a franchisee to have a background in hairstyling , though it could be helpful, as it’s a client based business. However, a franchisee trained as a stylist may feel pressured to be on the ground and running operations and become burnt out. It’s dependent on the work life balance and type of career focus a franchisee is seeking.
Health On the other spectrum of the beauty industry falls health, which also extends to many products and services within the franchising field. Those interested in this type of investment, have a lot of research and consideration to take into account before pursuing their ideal franchise. Outside of the healthcare system directly, franchisors have recognized a lot of
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Featu re
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“Outside of the healthcare system directly, franchisors have recognized a lot of opportunities within the health industry beyond medical treatment, including health food stores, vitamins, diet plans and services, nutritional clinics and products, to name a few.”
opportunities within the health industry beyond medical treatment, including health food stores, vitamins, diet plans and services, nutritional clinics and products, to name a few. Health even reaches medical care equipment, first aid products and pharmaceutical sales- it’s an area full of possibilities.
received by the general public.
Health food stores
The buy in for these types of franchises can be pretty high because it’s usually a really large lot and location, but there are large revenues.
A new trend amongst grocery stores is stocking organic, local food that is healthy. These franchises have aisles full of natural products, fresh produce and vitamins and supplements. It’s a different approach to the grocery store, but it has been well
Usually with an environmentally friendly approach, these grocery stores have products with higher price tags and healthier choices. There is also a tendency to carry cleaning products, toiletries and other items that are expensive but ecofriendly.
Another consideration is whether or not this type of buying trend will continue or if people will opt for less expensive bulk
locations. That being said, a franchise would likely adjust to such demands. These types of grocers have good support, reputation and marketing strategies from franchisors. Fitness The most common go to for fitness franchises is the gym. In 2017, there were over 60 million gym memberships in America. Even if people do not work out or not keen to working out, they know that it is in the best interest and its appealing to most consumers as an ideal practice. The financial beauty behind the gym industry is the ghosted membership. There are quite a few people who pay for the fees, but never use the facilities. Without having to provide a service, franchisees are just bringing in free money. The gym industry is expected to continue growth and it is also benefiting from the social media movement. People have become fitness gurus and health experts online, with videos of their exercises and meals plans. The access to this type of information has increased the interests of others to get fit and join a gym. The fitness industry is worth over $87 billion and expected to continuously increase. Although there are some pretty hefty start up costs. The locations of a gym are large and expensive to get off the ground. It’s best to find out what the costs are covering and where support can be expected long term. The beauty, health and fitness industry has so much choice and opportunity. It’s constantly shifting and growing in all areas with a relentless interest from all Americans. Most options are extremely profitable and can lead to great success if you chose the one that’s right for you.
“The fitness industry is worth over $87 billion and expected to continuously increase.”
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ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
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ASS I ST E D L I V I N G LO CATO R S
SENIOR PLACEMENT FRANCHISE WANTS TO GET THE WORD OUT TO HELP SPUR GROWTH
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“Since many placements occur from local networking, franchisees play an active role in their local communities and by regularly interacting with key local business who also service the same target audience.” “One big challenge is making sure that senior T andHfamilies services E Mknow A Gthat A ZourI N E F are available, and provided at no cost to the family,” Olea said. “You don’t even think about this until you might need it so creating awareness that our resources are available is a key marketing initiative for the organization.” Since many placements occur from local networking, franchisees play an active role in their local communities and by regularly interacting with key local business who also service the same target audience.
One senior care-related franchise system has the lofty goal of expanding its national footprint by over a third throughout this year.
Currently, Scottsdale, AZ-based, Assisted Living Locators has 110 franchises in 34 states. “In 2019, we will continue to focus on building our national presence by growing our franchise locations by 35 percent,” CEO Angela Olea said during a recent interview.
Olea is convinced that Assisted Living Locators can do it. “We grew by 38% last year, and we’ve got an aggressive plan to make the adult children of seniors aware of our service category with new branding and marketing programs in 2019. We’ve only just scratched the surface of the growth potential to help families and expand the system.” Assisted Living Locators essentially act as consultants who connect families with the right care facilities, communities or homes based on health needs, location, price and activities. When families contact the company, a senior care advisor conducts a comprehensive assessment of the family member’s needs. Then, the company’s
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Get the App care advisors -- the franchisees -- go through their database of local properties to find the best match for the senior in need. They walk the families through the process of comparing facilities and make recommendations to the family, who are ultimately the ones who choose the location that is right for them.
Assisted Living Locators online presence also helps as families increasingly turn to the internet to identify resources that can help them with such a critically important decision. When people do connect with Assisted Living Locators, the company and its franchisees get high marks for serving as a valuable resource to families.
The service is free for the families, with the franchisee getting paid by the community when a senior is matched with them and moves in.
The great thing about this space, Olea pointed out, is that with an aging population and an expanding client base, senior placement is a recession proof industry.
Despite being around since 2003, many people remain unaware that resources like Assisted Living Locators are available to help with a sometimes difficult set of decisions.
INVEST TO BE THE BEST
to get into this industry, CFO and Chief
O Strategy R F ROfficer A N for C the H Icompany S E E Mark S Alivero said.
VOL 07, ISSUE 7, MAY 2019
“The franchise model is the winning model in this space,” he noted. “Success in senior placement requires national scope for marketing and advertising coupled with local ‘boots on the ground’ to assist WANTS TO GET THE WORD families face to face. Online referral OUT TO HELP SPUR GROWTH companies have the former, independent agents have the latter, and only franchise models have both.”
ASSISTED LIVING LOCATORS
What sets Assisted Living Locators apart from other franchisors in the senior placement market is the company’s dedication to its training, systems, processes and lead generation, the CFO said. Assisted Living Locators has recently hired Southwestern Consulting Services to provide sales training to complement its existing intake and family model. The company has also invested in its own proprietary customer relations management (CRM) software that is customized to the senior placement industry.
THE LONE ENTREPRENEUR
The best option
Assisted Living Locators is in the best spot to help would-be entrepreneurs who want
Plus, the franchise’s processes are always being refined and streamlined so they work better, Alivero noted.
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Expert Advice: Thomas Nieto, Co-founder and CEO, Main Squeeze Juice Co.
Athletes in Franchising:
What Franchisors Need to Know Athletes in franchising has recently become a trend. As more and more athletes are turning to outside revenue sources and looking for a way to carry their legacy beyond playing time, many are finding franchising to be a viable option. With strong support systems, semiabsentee models and proven track records of success, franchising offers great benefits for athletes looking to get into business. Additionally, athletes are used to having playbooks and following a set game plan to success, which franchising provides. For emerging brands, having an athlete franchisee can elevate the brand further than any marketing effort. I should know – my company, Main Squeeze Juice Co., inked a deal with former New Orleans Saints wide receiver Marques Colston. He has been instrumental to our growth. What started as a partnership has now turned into Marques holding a position on our executive team, which has been extremely beneficial. Over the years, we’ve learned a few things about athlete and franchisor relationships that will be valuable to anyone considering onboarding an athlete franchisee.
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“Franchisors must learn to navigate the precarious relationships to ensure both the brand and the athlete franchisee enter into the best partnership for all parties involved.”
Understand their brand First and foremost, the number one thing to know about working with an athlete is that they have a personal brand. Their brand is made up of who they are as a person, the team they play for, how they conduct themselves professionally as well as in the media, and so much more. Each athlete works to create and maintain this identity, and are looking for business opportunities that align with their brand. It is important to be aware of this, as it will be easier for you to sell your concept if it aligns with their personal brand. On the other side, it will help you see if this partnership is the right fit for your brand, as they will now become an extension of your business in both the media and consumers’ minds. To get a sense of their brand, study their interviews and games - see how they respond to questions and interact with the media. Look at their social media. Get to know their personalities, learn what causes and passions they share, and see how they portray themselves –keep in mind that their public image will always be associated with your brand once they become a part of your business.
Don’t be blinded by the excitement and celebrity There’s no denying how exciting it is to hear that an athlete is interested in your concept. Not only are they great for brand awareness, but they bring an element of celebrity to your brand. That being said, it’s understandable to want to make concessions to keep them interested you’ll agree to anything to get them to sign on. But the wrong franchisee can cause friction and even damage your brand in the long run. Therefore, it is important to not be blinded by the athlete’s fame or fortune. It is important to treat them just as another business partner albeit with a few perks. Make sure their needs and wants align with the opportunity presented to them. Spend time with them to ensure their personal and brand values align with yours, and make sure it is the right fit, not just the nice fit.
Treat them like business professionals, not an athlete Athletes who get into franchising are interested and engaged in their future. They are looking to make an investment of both time and money for a concept
Thomas Nieto (C) with Marques (L), Main Squeeze franchisee and Marques’ wife Emily (R).
they feel called to. They typically keep business investments separate from their athletic business dealings and you must do that as well. When interacting with them, treat them as a business professional, not as an athlete. Talk to them as you would any other business associate – friendly and engaging, but serious and intelligent. Respect their wishes, learn about their career aspirations (outside of touchdowns and Super Bowl rings), and explain your concept just as you explain it to other franchisees. Always remember, they are not an athlete you’re a fan of, they are a potential business partner.
Keep them engaged Once they have signed on as a franchisee, keep them engaged throughout the entire process. Have them share ideas for their locations and openings and take part in marketing efforts as it makes sense for their personal brand. In some cases, like
“The number one thing to know about working with an athlete is that they have a personal brand. . . . Each athlete works to create and maintain this identity, and are looking for business opportunities that align with their brand.” Marques’, have them take on larger roles in the company if it makes sense for both parties. Even if they are semi-absentee, constantly update them, develop your relationship and show them that there is more ROI than just bottom line numbers – an athlete can gain a support system and a franchise family through an investment in your company. They can craft a legacy. This engagement and freedom to craft their legacy alongside your brand will speak volumes. Athlete franchisees offer incredible perks for an emerging brand, but come with a few risks. Franchisors must learn to navigate the precarious relationships
to ensure both the brand and the athlete franchisee enter into the best partnership for all parties involved. Much more than money, these partnerships can create lasting legacies for both brand and athlete. With that, it is exciting, fun, challenging and rewarding to bring on an athlete franchisee – just as anything in business is. Thomas Nieto is a co-founder and the CEO of Main Squeeze Juice Co., a smoothie and juice bar based in New Orleans, backed by Super Bowl champion and Director of New Business Marques Colston. www.mainsqueezejuiceco.com
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Expert Advice: Vas Maniatis, Founder, Seva Beauty
Top Tips for Leveraging Technology to Innovate a Traditional Business Model
Vas Maniatis
Technology has become increasingly important to businesses large and small, but may not always come to mind for those in the more traditional, service-related beauty industry. Here are several things you’ll want to consider in leveraging technology to innovate what could otherwise potentially become a dated business model:
1 Technology flattens everything, use it to your operational advantage Referring to the globalization theme in the 2005 book by Thomas Friedman, “The World is Flat” analyzes the many ways in which technology has made the world of commerce a level-playing field. Our brand’s focus on technology was what allowed our seamless relocation to
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Puerto Rico, even in the aftermath of a devastating hurricane. Adhering to our Core Focuses of People, Process, Content and Tools, we were able to use technology to easily integrate our operations overseas and even utilize highly-skilled team members over 13 hours away. At Seva Beauty, new technologies like video conferencing, virtual evaluations and eLearning, for example, are constantly being tested and successfully implemented.
2 Stay ahead of the training game with technology Video conferencing is the “now” and Google Glass may be the “future” of training. Even in the very hands-on beauty business, this technology has proven to be a key differentiator in keeping the frontline people on our team equipped with the latest in company processes and industry best practices.
“In a world of social media and ever-evolving online platforms, one constant is your website. Keep it updated, clean and easy to navigate.”
3 Keep your customers engaged with technology One of our Core Focuses is on “People,” and we have been able to engage our customers with technology that allows them to experience the progressive nature of Seva Beauty. We use a self-service, iPad-based check-in to engage customers right from the start of their in-store experience. Not only does it make checkin a breeze, but it also keeps front-line staff, known as “beauty gurus,” from having to interrupt a service. Customers can also choose to share information with us for follow-up visits. This elevates the post-store experience by allowing
“Using technology to stay in touch with our system seems obvious, but requires the right process and the best tools to make it work seamlessly!”
us an opportunity to connect our core audience with the product and promotional information that’s most important to them.
4 Make your technology multifunctional Our in-store POS system not only manages the check-in process for customers, but that same custom-designed POS system also manages customer information, important employee data and an array of options for financial reporting and analysis. Seva Beauty Studios, are also equipped with remote web-viewing capabilities. This way, franchisees are able to see what’s happening in their store at all times and from any device.
5 Make technology work harder for you In a world of social media and everevolving online platforms, one constant is your website. Keep it updated, clean and easy to navigate. For Seva Beauty, our mantra is “Beauty to the People,” so we take delivering information about our services and locations seriously, and we make it easy to access on all devices. On our website, studio locations are easy to find with maps and locators; the menu of services is purposefully kept simple; franchise investment and job opportunities have dedicated tabs; and we offer an option for visitors to leave their email address to receive special offers – all ways we are intentional in making technology work hard for the brand. We also create individual websites and social media pages for each of our Studios.
We employ SEO platforms that help drive customers through online engagement, and we are constantly running different social programs that increase the reach of our Studios’ social media pages for a 360-degree,technology-driven marketing approach.
6 Work with like-minded individuals One of the things we look for in a new franchisee is proficiency with technology. We have worked diligently over the years to create a variety of online portals that are available for their use. Our online hiring portal is one of the most widelyused in our system. The hiring portal helps manage one of the most critical components of a beauty-based business - the hiring process! From posting an ad through hiring a new employee, our franchisees can utilize this platform to stay organized and efficient. Another popular portal is the Seva Beauty ordering portal, which helps franchisees shop for all of their approved supplies in one place and provides for true one stop shop convenience. Meanwhile, our Marketing Portal provides franchisees free promotional materials and the ability to
order additional marketing items for their Studio with just one click. All portals are accessible through the in-Studio iPad or any other online device.
7 Communicate through Technology Our online operations manual makes the days of printing and sending manuals obsolete. It also ensures that franchisees always have the most updated information. Every month we publish a digital newsletter and hold virtual webinars that recap company events, recognize franchisee successes and provide important updates for the system. Using technology to stay in touch with our system seems obvious, but requires the right process and the best tools to make it work seamlessly! Vas Maniatis is the Founder of Seva Beauty. From pioneering Chicago’s largest rental-finding agency to the fast-growing Seva Beauty fast casual spa that delivers “Beauty to the People,” Vas has keen insights on what works and what doesn’t when it comes to creating and growing a franchise. www.sevabeautyfranchise.com
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Expert Advice: Bryon McLendon, Founder, Nutrishop
How to Attract the Ideal Franchisee According to Statista, there were approximately 759,000 franchised establishments in 2018. As such, those interested in purchasing a franchise have a surplus of concepts to pick from – in every space and category imaginable. Just as candidates are in search of the right system that best suits their needs, franchisors know that partnering with
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qualified franchisees is a key ingredient in building a successful franchise concept. With so many franchised businesses out there, franchisors must break through the clutter in order to attract their ideal franchisee. Someone’s first experience with your brand is just the first step of breaking through the clutter – and this rings true for customers as well as potential franchisees. Just as the saying “first impressions matter” when going on a first date, the same goes for your initial interaction with a potential franchisee. Prior to franchising your business, I recommend having the following items in in place: - Have a creative, clean and easy to navigate website. This is important,
as someone is not likely to invest in a concept that they are not proud to showcase to family, friends – and most importantly, customers! - Your website should have a consumerfacing portion, as well as a franchise portal that includes pertinent information for potential franchisees. This portal should include information such as: o Initial investment price range and what is needed financially to qualify o Royalty fees – and whether they’re fixed or percentage based. On average, a majority of franchise models collect an average of 5-6 percent of gross sales volume each month. My
company, NUTRISHOP™, prides itself on not collecting monthly or annual royalties from our franchisees, meaning their income is theirs to keep!
“Just as the saying ‘first impressions matter’ when going on a first date, the same goes for your initial interaction with a potential franchisee.”
o Make note of whether you assist with financing – or if you can make connections to lenders o Provide a breakdown of on-going franchisee support, including:
• Real Estate (selection, negotiations, build-out, etc.) • Protected territory rights
• Initial and on-going training and support • Marketing assistance
o DO NOT provide average revenue. While this seems like a valid question for a potential franchisee to ask, I don’t recommend publicizing this. There are many factors that play into this, such as: New franchise sales don’t often parallel an established franchisee and how knowledgeable, willing and driven an individual franchisee is.
- Maintain a consistent brand message across all channels, including website, social media, franchise locations, media placements, etc. Mixed information will not only put off potential franchisees – but consumers as well - Participate in franchise trade shows! This is a great opportunity to meet with potential franchisees face-to-face
While this may seem like a lot of information, in my experience of offering NUTRISHOP franchises, it’s an excellent first step in attracting ideal, qualified leads. Making this information public allows those who are not serious about your system or who cannot meet your requirements to be weeded out. Only those who believe they are ready to take the next step will fill out the application. That said, even with this abundance of information, there will still be applicants who do not fit your business’ ethos. On average, we receive close to 400 applications to become a NUTRISHOP franchisee on an annual basis. We pride ourselves on attracting and securing ideal franchisees through our detailed vetting process.
For NUTRISHOP and the nutritional and dietary supplement industry overall, an ideal franchise partner must have a genuine passion for health and fitness and want to help consumers achieve their health and fitness goals. This may seem obvious, but we receive applications on a regular basis from those who have limited or zero interest in our industry. This will not work. In order to be successful in our business, you must be able to spread the company’s mission of bringing awareness, knowledge and passion to the nutrition field. Our system isn’t one you can simply treat as a monetary investment – it’s one where you need to be educated in the space, paired with drive, determination and a relentless work ethic to make your location thrive. Whatever your industry may be, I recommend identifying the founding principles to the business and not straying from these when deciphering whether someone is the right candidate. While it’s great to award franchises and see your business grow, if someone is not a direct extension of your company’s “North Star,” they are likely to fail. When a franchisor’s mission, goals and requirements are clear and unwavering, it’s easier to identify
whether a potential franchisee’s interest will result in a successful and long-term partnership. Bryon McLendon is the Founder of Nutrishop, Inc. He began opening nutrition stores in 1997. He was determined to build something special. He wanted to create a business model that would provide consumers a diverse selection of high-quality dietary and nutritional supplements offered at guaranteed low prices coupled with exceptional, individualized customer service. He founded Nutrishop, Inc. in 2003. Now, more than 15 years later, he is still helping others achieve their dream of owning their own successful retail nutrition business.
Bryon McLendon
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Expert Advice: Christopher Conner, President of Franchise Marketing Systems
Good Business Can Be Beautiful There are so many ways to make a living and so many options for starting a business, I guess that’s part of what makes capitalism so appealing. It is the endless possibilities and options for paving your own path and developing a new way forward. The franchise market certainly lives up to this theory with what
seems to be an endless variety of new, innovative and fun brands to choose from and no industry segment has proven this more true than the health and beauty market segment. With more and more people turning to alternative health and wellness services as a way to look and feel better, the franchise market has responded with some brands that bring incredible platforms to the mainstream market. No one on the planet can talk about health and wellness right now without bringing up the CBD market. This big and getting
bigger every day industry segment is new and so full of opportunity it’s hard not to get buzzed about it. CBD offers a wide range of benefits to the consumer, joint pain, cancer fighting, anxiety relief and many, many more benefits come with the incredible CBD product offerings. As more states legalize the use of CBD products, this industry segment has a look of being the next gold rush. The franchise market has seen several brands come to the industry offering CBD business models. Franchise Marketing
“With more and more people turning to alternative health and wellness services as a way to look and feel better, the franchise market has responded with some brands that bring incredible platforms to the mainstream market.”
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“If beauty is something you feel passionate about and enjoy helping others look and feel their best, now is as good of a time as any to find a great business in this market.”
Chris Conner
Systems has supported several of them in developing operating documentation, organizing the franchise offering and developing a franchise system. Discover CBD and Gabberdunes are two of the new CBD Franchise brands who along with others offer a wide product selection, well-planned retail store models and an e-commerce component to the franchised business model. Discover CBD has gone so far to go vertical by establishing production, distribution and warehousing facilities. Both systems have just started to offer franchises and have their first franchisees signed on in a short time period bringing the Discover and Gabberdunes brands to more people in more areas. The second area of beauty, health and wellness that has come mainstream is the alternative health and wellness service segment. So many brands have been developed around this incredible market segment. Things like laser hair removal, infrared sauna, botox and threading have become more accepted and generally gone mainstream. What’s funny is that to most of us, what these services can do for people seem like something out
of a sci-fi movie and produce results that no one thought were possible only a few years ago. Harlem Zen Medspa is a great example of this scenario, the founder, Angela McTair, came at the industry from a business background after realizing that there were no options for people of color when it came to hair removal and high quality skin care services. Harlem Zen incorporated the latest technology in MedSpa services, and developed a platform to deliver these services to this specific demographic. The model is simple, well-defined, low investment and offers a wide range of high margin beauty services to a customer group in need of a brand to serve them. Brands such as Seva Beauty and Beauty First make “getting beautiful” quick and easy with convenient locations in high traffic areas. Pricing is value-oriented, customer service is strong and the locations are warm, inviting and even accept people like me, Chris Conner, who as a 40 year old guy, would have never considered walking into a beauty salon in the past. Beauty First is a newer franchise platform that launched from Ontario recently and has developed a simple, but
high quality service model, primarily located in malls and high traffic shopping centers. This is what people expect today and want when they want to look good; easy, affordable and quick service. There still is a market for the really high-end, fancy salon where prices are high and people walk around with their nose in the air, but the growth opportunity in beauty is in the quick and convenient segment of the industry. My advice: if beauty is something you feel passionate about and enjoy helping others look and feel their best, now is as good of a time as any to find a great business in this market. For the right system, the numbers don’t get much better and this is a business where you can feel good about what you do every day helping others be the best version of themselves. Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work. His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting. For more information on how to choose the right food service franchise, contact Chris Conner at Chris.Conner@ FMSFranchise.com. www.fmsfranchise.com
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Have your say: Roger Martin, Co-founder of RockBox Fitness
More Than a Workout:
Finding Franchisees in Your Membership Base When you’re creating a brand-new franchise, one of the key components is not only having a solid product offering, but also a product that can truly impact the lives of customers. The positive impact on peoples’ lives is what we focused on when we created RockBox Fitness. Our goal was to create a workout that wouldn’t inspire people for just one class, but keep them coming back for more. We knew we could devise an everchanging, challenging but fun workout, so the key was to attract the right kind of members who were looking to make RockBox Fitness part of their overall health and wellness plan. We soon realized many of the members would make ideal franchisees, and because of this, we were able to capitalize on aspects of RockBox which already existed to create a community that encouraged people to get more involved in the studios and programs. Through this community, we have been fortunate to find members who want to help even more people change their lives for the better, and they have made the RockBox family what it is today by becoming RockBox franchisees.
Building your base We believe that members become our best ambassadors. They know our mission, goals, workouts and the results they bring better than anyone - they live it every time they come to class. Seven of our franchisees were members before starting their own
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locations, and two were willing to relocate to start their studios. They have grown
with us personally through their workouts and now professionally through opening their own studios. We have been able to
watch the franchisees grow into the people whom they are today, and it’s incredibly
validating to see this level of growth and
passion in our partners. Finding dedicated franchisees can be a challenge, but we
created key elements in RockBox that gave us the opportunity to find and facilitate them in our own backyard.
“We believe that members become our best ambassadors.”
of fitness and helping them achieve their highest potential. The same is true for our franchisees. We’ve seen them grow from members to assistant trainers to helping with membership sales. An important aspect of supporting members becoming franchisees is having the right training tools from development to daily support after grand opening.
Escaping boredom The No. 1 reason people stop going to fitness classes – boredom. The classes become repetitive and disengaging. This was the first obstacle we knew we had to tackle. We designed our studios with this first objective top of mind – avoiding monotony; the studios feature all the boxing equipment and heavy bags you would expect for a boxing and kickboxing based workout, plus a complete functional training studio as well. Our studio design set our franchisees up for success and is a crucial component to our concept as a whole. It has helped us retain our members by continuously challenging them, but also entertaining them to ensure they have fun while working toward their fitness goals Because of our member retention strategies and tactics, our churn rate is very, very low. Because of this, we are able to create a growing and supportive community that encourages people to come back again and again and become ingrained in the RockBox family. Building
a community gives people a sense of ownership, which leads to wanting to get more involved. Ultimately, this has led us to finding franchisees in our membership base, and it all starts with having a product that changes lives.
Making it inclusive One of our keys to finding the right franchisee is looking outside of the fitness world. You don’t need to have franchisees with a fitness background; you just need people who are enthusiastic and believe in what you are doing. We created an inclusive community where people of all fitness levels can achieve their goals and feel comfortable in the studio, and the same rules apply to our franchisees. They come from all backgrounds and various fitness levels. As long as they believe in helping anyone achieve their goals, they will be a perfect fit.
Franchising is a team sport From the first class, we believe in supporting people where they are in terms
We pride ourselves on the community we have helped create; it was always important to us to provide an environment that inspired people to lead the lives of which they have always dreamed - that has never been more evident than in our franchisees. As a growing brand, we realize finding the right franchisees is the key to continued growth. Being able to facilitate internal growth through our members has created a system that we are proud of and have fully embraced. Prior to becoming a Co-founder of RockBox Fitness, Roger spent 25 years in the branded pharmaceutical business. Holding positions as the Chief Operating Officer of a development and manufacturing organization to serving as the National Sales Director and Senior Vice President of other major pharmaceutical brand companies. His extensive expertise in sales management, leadership, business development, and marketing has been beneficial in establishing the RockBox brand. rockboxfranchise.com
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