VOL 11, ISSUE 7, jULy 2023 The magazine for franchisees • WWW. franchisingmagazine U sa . com Building a l asting l egacy in the Restau R ant i ndust Ry h ow do we select g R eat locations? special feature top f R anchises fR anchise s t R ategy cOV er stO rY t he e nt R epR eneu R ’s s ou R ce® jason madden is dedicated to Helping Veterans ann O uncements fr O m the industrY f R anchising news
IN PARTNERSHIP WITH IN PARTNERSHIP WITH MAY 30-JUN 1, 2024 www.FranchiseExpo.com at FranchiseExpo.com for FREE REGISTRATION USAP Meet hundreds of brands from every industry Attend 75+ workshops and FREE EDUCATIONAL SEMINARS The largest Franchise Expos in the U.S. Franchises available at every investment level starting at $10,000; find the one that fits you FREE ADVICE from legal and finance professionals
VOlume 11, issue 7, 2023
On the cover: b Usin E ss Financ E d Epot
president: colin bradbury. colin@cgbpublishing.com
publisher: Vikki bradbury. vikki@cgbpublishing.com
editO rial department: editor@cgbpublishing.com
adV ertising: vikki@cgbpublishing.com annie@cgbpublishing.com.au
e ditO rial team: Michelle Quinn rob swystun
pr O ducti O n: usaproduction@cgbpublishing.com
design:
Jejak graphics. jejak@bigpond.com
cgb publishing canadian o ffice: sidney b c canada
u. s. Office: 800 5th ave, #101 seattle, Wa 98104-3102 www.franchisingmagazineusa.com
Welcome to our July issue of franchising magazine usa
On the front cover this issue we have t he e ntrepreneur s ource and meet Jason m adden a c areer ownership coach who dedicates his time and expertise to mentor fellow veterans, enabling a seamless transition to civilian life. You can read more about this on page 10.
a s always, we have some great advice in this issue, g eorge Knauf helps us to understand the steps you need to take when you have found the franchise you want to buy, g etting approved. Morven g roves takes us through building a legacy in the r estaurant industry. t here is a lot of talk these days on a1 technology and Lucas Frey advises on the 7 steps to achieving success in ai implementation.
o ur Main Feature this issue is top Franchises, t he feature supplement has some great articles from experts such as chris conner t he top Franchise trends shaping the Market, Evan hackel and r ick bisio, Franchising in 2023 – Fewer r isktakers, but still s ome Experimentation. We also feature a range of articles on Franchisees and Franchisors in this edition such as island Fin poke, Managed Mowed and papa Johns to name a few.
n ever forgetting our Veterans in Franchising, you will find in this issue the story of paul g ates and his journey from service in the army to becoming a franchise owner with Wild birds Unlimited which has been full of interesting twists and turns. We also meet Kelly Zaugg a franchisee with b eans and brews and tells his story as to why Veterans Excel as Franchise o wners.
i really hope you enjoy reading this issue and don’t forget to take a moment to scroll thorough to our a-Z d irectory at the back of the magazine or visit the website to find more exciting franchises and advice. happy r eading.
proud member of the ifa:
SUPPLIER FORUM
international Franchise a ssociation 1501 K street, n.W., suite 350 Washington, d c. 20005 phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org
the
Vikki Bradbury | Publisher Franchising Magazine USA
resold, hired out, without the express permission of the publisher.
Franchising M aga Z in E Usa 3
information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. opinions expressed in the articles contained in this publication are not necessarily those of the publisher. the publication is sold subject to the terms and conditions that it shall not be copied in whole or part,
VOL 11, ISSUE 7, jULy 2023 The magazine for franchisees • WWW.franchisingmagazineUsa com aBuilding lastinglegacy in the RestauRant industRy how do we select gReat locations? special feature top fRanchises fRanchise stRategy cOVer stOrY the entRepReneuR’ssouRce® jason madden is dedicated to Helping Veterans annOuncements frOm the industrY fRanchising news
JULy 2023 contents
Cover Story
10 The Entrepreneur Source: Leading career coach dedicated to helping Veterans achieve professional success
In every issue
6 Franchising News Announcements from the Industry
31 Special Feature Supplement Top Franchises
72 A-Z Franchise & Services Directory
Franchisee in Action
12
22 Island Fin Poke: america’s best poké debuts in the capital of country Music
58 Papa John’s: Joe Johnson —paving the Way for Equitable Franchise opportunities
Have Your Say
16 Mold Medics: how Mold Medics Emerges as a Key player in the indoor air Quality industry
20 Franchising Filming
Trever Rappleye: got Video? how to create Frandev content that boosts sales
60 Openworks Andrew Johnson: risky business: how Facilities Management Franchises can help businesses avoid the pitfalls of bringing Work in-house
Spotlight On Service
18 North American Immigration Agency: how to Expand Franchise sales abroad with naia
24 Clicktecs: harnessing the power of technology for optimal Franchise Marketing
Franchisor in Depth
14 Seven Brothers: seven brothers, one dream: how We spread aloha through good Food and Family Values
28 Pickelball: pickleball Kingdom has Massive Franchise plans
Veterans
66 Beans and Brews: From battle to beans & brews: Why Veterans Excel as Franchise owners
68 Wildbirds Unlimited: the benefits of Military service in Franchising
Expert Advice
12 George Knauf: getting approved
26 Morven Groves: building a Lasting Legacy in the restaurant industry
54 Ron Ramesh: Franchise strategy
56 Lucas Frey: 7 steps to implement ai
62 Peter Buckingham: how do we select great locations?
70 Peter Loh and Brantley Smith: Understanding claims of Joint Employment and Employment Misclassification
Franchising M aga Z in E Usa 5
56
10
62
FLAM e BR o ILe R BOLSTERS LEADERSHIP WITH SHERRY BROESAMLE AS VICE PRESIDENT OF PEOPLE
Flame Broiler, the Korean-inspired restaurant concept on a mission to simplify access to healthy, affordable food, has appointed Sherry Broesamle as Vice President of People. In this newly created position, Broesamle will work closely with the executive leadership team to shape the company’s culture and strategic direction.
“We are building a world-class r estaurant support center to better partner with our incredible operators and franchisees,” broesamle said in a statement.
With an eye toward accelerating the brand’s growth, broesamle’s focus will be on bringing a fresh perspective and
an innovative approach to the way the restaurant industry invests in its people.
“o ur vision at Flame broiler is to serve more bowls and provide greater access to healthier food. We can only do that through people,” shares christian Lee, coo of Flame broiler. “o ur company’s first-ever Vice president promotion is a people position for a simple reason - we can only reach our goals and vision through our team.
“Making a change to a very different industry at this point in my career has been a huge learning curve, but also the opportunity to serve and recreate the people experience in this industry has
been incredibly motivating,“ states sherry broesamle, Vice president of people at Flame broiler. “ it has been a pleasure working with the Lee Family and the Flame broiler team for the past year and a half. t he Lees have led with integrity and humility, and they live out their values clearly. it’s an honor to partner alongside them day in and day out, shift after shift.”
s e Rv I ceM A ste R® B RA nds Names
Daniel Laughlin as Senior Vice President of
Development
ServiceMaster® Brands, a leading provider of residential and commercial cleaning, restoration, and moving services, is pleased to announce the appointment of Daniel Laughlin, senior vice president of development.
Laughlin brings nearly 20 years of experience in business development, finance, mergers and acquisitions, and new business integration. b efore joining s erviceMaster® brands, Laughlin was vice president of corporate development for Marcone supply, a distributor of appliance replacement, h Vac, and plumbing parts. d uring his stint at Marcone, Laughlin was responsible for developing and leading the company’s mergers and acquisitions process and building its inaugural development team. Laughlin has also demonstrated expertise in strategic planning activities across national and multi-location structures.
“We are excited to add a strong business leader to the s erviceMaster team,” said g reg Weller, cEo of s erviceMaster® brands. “ daniel’s experience in business development and strategic expertise will
help take the brand to the next level.” in his new role at s erviceMaster, Laughlin will spearhead franchise growth and ensure the company’s existing system continues to succeed.
“ i ’m looking forward to tackling my new role at s erviceMaster. t he franchise has a long history of success and a culture of service. i ’m really passionate about trying to find win-win opportunities that are helpful to the brand’s team of associates, franchisees, and shareholders,” Laughlin said. “ i look forward to helping the talented franchise team unlock growth opportunities as they continue to provide essential services to local communities.”
When Laughlin is off the clock, he spends time with his wife and supports his daughter from the sidelines as she hones her soccer skills.
6 Franchising M aga Z in E Usa
Franchise Sale & Marketing
Veteran Creates “ t he
Franchise marketing veteran, Tarji Carter, has created The Franchise Player - a new company and brand centered around increasing franchise ownership and wealth across the African American community. Their goal is to provide a clear path to ownership for aspiring franchisees with franchise brands committed to fostering inclusive and diverse environments and providing a sense of belonging.
With more than a decade of experience in franchise sales and development, tarji has helped hundreds of small business operators realize their dream of owning a franchise while expanding the footprint of some of the world’s most delicious brands including cinnabon, c arvel, b askin r obbins, d unkin, Wingstop, Edible arrangements, Fuddruckers, b ojangles’, and more. h er focus is pushing for black entrepreneurs to operate high-performing restaurants, while helping companies grow their brands and build wealth in the b lack community.
“We believe successful franchise ownership can serve as a lowrisk vehicle for creating wealth for black and other marginalized groups in america,” says c arter.
t his revolutionary initiative aims to expand the number of b lack-owned franchises across the country. t he Franchise player provides education, resources, and opportunities to aspiring franchisees and small business owners.
tarji is also the force behind g uest First s ervices, inc., a franchise consulting boutique located outside of atlanta, ga gFs is responsible for developing and executing strategic franchise expansion plans and lead-generation tactics for brand partner relationships.
For more information, you can visit, http://www.thefranchiseplayer.com.
cAPI tAL tAcos Announces
Further Expansion in Florida with New Deal in Jacksonville
Capital Tacos, the small-town taco shop turned nationallyacclaimed Tex-Mex restaurant franchise, is excited to announce a new location will be coming soon to Jacksonville, Florida, a mere 200 miles from where the brand originated in Tampa. This latest development deal is being spearheaded by two local, experienced restaurateurs, who hope to open their doors to the public by late 2023 or early 2024.
b oth franchisees bring with them deep roots in the restaurant space – from having spent time as an executive chef, to having owned and operated a popular local Jacksonville restaurant chain. t hey were drawn to c apital tacos for its dedication to scratchmade, quality tex-Mex flavors, innovative menu, and whimsical culture.
“We’re thrilled to be bringing the handcrafted flavors of c apital tacos to Jacksonville as we continue to branch out into every corner of our home state of Florida,” said Josh Luger, co-Founder of c apital tacos. “given the extensive history our newest franchisees have in the restaurant industry, we’re confident this new location will find quick success.”
“after being in Florida for 10 years and branching out coast to coast, it’s amazing to see there are still significant opportunities to break ground in new territories in our home state,” said James Marcus, co-Founder of c apital tacos. “ t his deal to introduce the Jacksonville area to c apital tacos isn’t just about expanding our business; it’s about sparking the passion for our authentic flavors and cultivating a tex-Mex revolution that brings people together, one bite at a time.”
Capital Tacos franchise opportunities, please visit https://capitaltacosfranchise.com/
Franchising M aga Z in E Usa 7
FRAnch
I se PLAye R ”
co M Fo RcAR e Awards Its Highest Honor to Franchisee at Annual Conference
ComForCare/At Your Side, a franchised provider of in-home caregiving services, awarded the 2022 Franchisee of the Year award to Rick, Donna and Rudy Wrabel, At Your Side Home Care owners in Houston, TX. The award recognized their dedication to clients and consistently excellent service. The 20th annual ComForCare/At Your Side franchise conference took place March 2-4 in Lake Las Vegas, Nevada, welcoming over 225 staff members and franchisees.
“ it is truly an honor for our family to be recognized for this award,” said r ick Wrabel. “We are dedicated to providing the leadership and tools to help our caregivers provide the highest level of service to our clients. We are passionate about serving our community and helping our clients live their best lives possible at home.”
t he Franchisee of the year is awarded to the comFor c are/at your side franchisee who displays the highest level of excellence in
leadership, performance, the ability to sustain growth over several years, willingness to help others in the system become the best they can be, and the demonstration of pride in the brand.
“ t he Wrabel family is the epitome of what you would expect from someone receiving an award of this prestige,” said J.J. s orrenti, cEo of b est Life brands, parent company to comFor c are/at your side. “ t hey embody the comFor c are/at your side values within their office, and to the population they serve.
ComForCare franchising, visit www.comforcare.com/ franchising
n ew Ag AI n h ouses Holds 2023 Annual Franchise Conference
and share ideas that continue to ignite motivation all while nurturing the intimacy that makes them different,” says Lavinder.
s essions were broken down into several different learning settings including panels, breakout discussions, and special speakers. Leading these sessions were the n ew again h ouses home office team, partners, and several franchise owners. t he conference consisted of invaluable panel discussions, speakers, activities, and more.
n ew again h ouses Franchise® has protected territories so that franchise owners can engage as a community, enabling each other to support one another’s success rather than competing.
New Again Houses®, a real estate franchise company that transforms old houses into fantastic modern homes, recently held their Franchise Annual Conference. Spearheaded by Matt Lavinder and Tres Pigg, New Again House’s President and Director of Franchise Development, the annual
conference was designed to provide the experiences, resources, and ecosystems valuable to the growth and success of their franchisees.
“ t he main objective of the annual conference was to gather franchise owners, partners, and vendors from across the country to network, learn, and create
n ew again h ouses has been: Voted top 500 n ew Franchises by the Entrepreneur Mag and was Voted top 200 Franchises, top Low- cost Franchises and top r ecession proof Franchises by the Franchise business r eview.
For more information, please visit: www.newagainhouses.com
8 Franchising M aga Z in E Usa
g oodcents To Open First Restaurant in Pennsylvania
We are confident they will quickly become g oodcents fans after they smell our bread baking and see the generous helpings of our hand-sliced meats and cheeses.”
Goodcents opened its first sub sandwich shop in Pennsylvania on June 15, at 4910 Fairfield Road in Fairfield. Pennsylvania becomes the ninth state where Goodcents operates.
a grand opening celebration was held on the 15th June. t hose who attended had the opportunity to win gift cards and
prizes. For the first month, this g oodcents location will offer a buy one, get one free deal on 16-inch subs.
Joe bisogno, founder of g oodcents, said the company is excited about the opportunity to grow the brand in pennsylvania. “We can’t wait to introduce g oodcents’ quality food to pennsylvanians.
t he new g oodcents franchise is operated in a convenience store under an area representative agreement that will bring 10 g oodcents locations to southeast pennsylvania – adams, dauphin, d elaware and Lehigh counties – over the next five years. t he area representative/franchisee is a group of family members operating as shree harikrishna, LLc at g oodcents, area representatives invest in a geographic area and are responsible for developing 10 stores within the area. in return, the representative receives a portion of the franchise fees and royalties from the locations.
g oodcents, which has deep roots in the Midwest, currently has 66 locations with dozens more in development and further expansion in new markets planned. For franchise opportunities, visit ownagoodcents.com
Ryan Hames opens second M AR t I n I z I ng cLe Ane R s at 6113 Maxtown Rd, Westerville, OH
Ryan Hames, the owner of Martinizing Cleaners Dry Cleaning in Westerville, OH, recently added his second Ohio location with the purchase of LA Cleaners, located at 6113 Maxtown Road in Westerville. This expansion makes a total of four Martinizing Cleaners locations owned and operated by the Hames family, all of which are GreenEarth® Affiliates.
r yan’s family has been in the dry cleaning business since 1996 when his father, d ick hames opened his first location at1177 n hamilton r oad in g ahanna, oh r yan’s brother Eric followed next, opening Martinizing cleaners at 7348 Fodor r oad in n ew albany. r yan opened his first Westerville location at 528 polaris parkway in 2004. t he polaris parkway location was the hames family’s first location to
be designed around using g reenEarth ‘s o ptimized cleaning system from the start. after seeing the benefits of r yan’s investment in an environmentally non-toxic cleaning product, Eric moved to g reenEarth cleaning for his n ew albany location in 2015. in april 2022, after the landlord of the g ahanna location expressed the desire to protect his property and the environment by eliminating hazardous chemicals, d ick and store manager, Jennifer hames decided it was time to make the move to g reenEarth cleaning. t hey knew investing in g reenEarth was the only solution. additionally, all four Martinizing locations owned by the hames family bring environmentally friendly cleaning right to people’s doors with home delivery
services across the entire north end of columbus, from g ahanna to hilliard.
Ryan Hames’ new location in Westerville is open Monday through Friday, 7am to 7pm and Saturday, 9am to 5pm. For more information, visit www.martinizing.com/westerville
Franchising M aga Z in E Usa 9
AF ter
l eading c areer coac H d edicated to Helping Veterans ac H ie V e p rofessional s uccess
Madden launched his career coaching business in 2018 after spending 16 years in the U.S. Army and Marines. Motivated by a profound sense of duty following the tragic events of the 9/11 terrorist attacks, Madden responded by enlisting in the Marines as an infantryman.
His military experience instilled a deep commitment to safeguarding our nation and upholding democratic principles
while also sowing the seeds of his future business.
During his time in the service, Madden acquired invaluable lessons in collaboration, effective leadership, safety protocols, and unwavering commitment to excellence. Notably, he was deployed to Fallujah, Iraq, where he played an active role in Operation Phantom Fury — one of the most violent battles of the Iraq War. After suffering an injury during the war, Madden exited the Marines and briefly took a job as a corrections officer in Montana before joining the Army
to conduct counterintelligence work. While stationed in Italy, he spearheaded the coordination, management, and deconfliction of the Army’s counterintelligence operations in Africa. As part of this role, he completed the Army’s first biometric equipment fielding project in Senegal, which improved the country’s border security and intelligence capabilities.
Post-military service, Madden joined The Entrepreneur’s Source to provide career ownership coaching to veterans and other people experiencing a career transition.
10 Franchising M aga Z in E Usa cover story: The Entrepreneur’s Source®
Jason Madden, a career ownership coach at The Entrepreneur’s Source®, dedicates his time and expertise to mentor fellow veterans, enabling a seamless transition to civilian life.
“Coaching allows me to achieve my lifestyle and career goals while providing a valuable service,” Madden said.
Madden was recognized with the prestigious “2023 40 under 40” honor by Albuquerque Business First. This annual accolade is awarded to young individuals who consistently surpass expectations in their professional endeavors and community contributions.
Military a steppingstone to entrepreneurial success
There are at least 18.4 million veterans in the United States. Given the valuable skills veterans learn in the military, it’s not surprising the unemployment rate for former military members is lower than for their non-veteran counterparts. Unfortunately, many former service members are overqualified for their current roles. After being out of the service for three years, at least 61% of veterans suffer from underemployment, according to The Veterans Metrics Initiative at Pennsylvania State University.
The military has a unique culture, values, and way of life. After time in the service, some veterans may find it difficult to adjust to civilian society’s norms, expectations, and behaviors. Transitioning to civilian life often means losing the familiar structure of the military, which can leave veterans feeling disoriented and uncertain about their future — and finding the right job can be challenging.
Drawing from his personal experience, Madden is deeply committed to helping veterans effectively navigate the transition to civilian life. For the past five years, he has dedicated his time to volunteering for Veterati, an organization that offers mentoring services to unemployed or underemployed veterans and their spouses. “Veterati provides veterans with valuable mentoring to help them gain a foothold in
the job market,” Madden said. “The online platform makes connecting with veterans and their spouses who need guidance and support easy.”
Madden also conducts Military Transition Assistance Program employment and skills workshops through the U.S. Department of Labor and the Department of Defense. As part of the Kirtland Air Force Base program in New Mexico, Madden hosts formal career transition workshops and helps veterans write resumes, develop personal branding, and more.
“Being able to help veterans is important to me. I did the transition from the military. I know veterans do not want to hear platitudes. Even if you’re a senior officer, you’re just a regular Joe when you retire. It can be challenging,” Madden said.
coaching helps Bridge the gap
The Entrepreneur’s Source provides education-based coaching to help people determine if they want to take a new job in the corporate world, start a business, or invest in a franchise.
Upon completing their military service, many veterans are eager to take control of their future. They want to carve out worklife balance and achieve financial freedom. The Entrepreneur’s Source plays a crucial role in assisting veterans as they embark on their next journey.
“Many veterans struggle to find their footing after they leave the military. They’re scared and want sustainability. Our process helps them do the analysis,” Madden added.
Franchising offers a path to business ownership by providing a turnkey business with training, guidance, and support. Only 7% of the U.S. population are veterans, but they account for 14% of all franchisees, revealed VetFran. Veterans acquire the leadership and team-building skills they need to be successful entrepreneurs, and their ability to execute systems makes them ideal franchise candidates.
“Veterans have the tenacity and grit to build successful franchise businesses.
“ Franchising offers a path to business ownership by providing a turnkey business with training, guidance, and support. Only 7% of the U.S. population are veterans, but they account for 14% of all franchisees.
Being able to guide them as they explore their options and possibilities is very rewarding,” Madden said.
John Holland relied on career coaching from Madden after he exited the service. Holland spent 20 years in the Marines and deployed to Iraq and Afghanistan. After he retired, coaching gave him the guidance he needed to become an entrepreneur. He partnered with Ace Handyman Services to open a franchise in Jacksonville, North Carolina. “Jason gave me advice, and I knew he was always available to answer my questions. He was very responsive,” Holland said. “Franchising enabled me to open a business where I can employ other veterans and provide a service in my local community.”
Franchising M aga Z in E Usa 11
“ Coaching allows me to achieve my lifestyle and career goals while providing a valuable service.”
”
investigation process and after an approval meeting involving everyone you spoke to and the executives at the franchisor.
I have seen franchisors close files at every step in the investigation process, have even seen candidates asked to leave DDay (usually last step in the process, a face-toface meeting) before it ended.
Franchise brands benefit greatly from making sure the candidates they are considering are a great fit for their type of business and their franchise model. They want happy and successful owners who use the resources available to them and build the brand footprint as they open their locations.
Just like you want to evaluate franchise opportunities and find your perfect fit, franchisors are doing the same. It is a mutual evaluation process, not a sales process.
If you inquire with a franchise brand and they use a hard sell sales process with little time spent getting to know you, I would suggest caution.
g etting ppR oved
What is the franchisor looking for?
First, they want to see that you have the skills required to succeed in their business model. Is your background focused on management, sales, marketing, or other skills? Unlike most of corporate America, franchising considers skills to be largely transferrable. They will want to make sure that the way you manage or the way you sell fits how their owners use those skills to grow the business.
If you are working with a professional franchise consultant, we will spend time with you before you talk to a franchisor to outline your skills and how you use them so that you talk to franchisors that are more likely to fit right out of the gate.
If you are going solo, you will have to prescreen as best you can then the franchisors you inquire about. Unfortunately, they don’t talk about the franchisee model in marketing so it will take a little digging.
During the investigation you should find that the development team will ask about your background and the skills you bring. They will ask targeted questions on skills that they need to see franchisees excel at. If they have any concerns, they will make them known.
By the same token, if you have trouble seeing yourself in the role of the franchisee with a brand you should make those concerns known so the franchisor can clarify any misperceptions.
The franchisor will also want to make sure that your finances and goals are in alignment. They should want to see that you can comfortably fund and grow
the franchise, and that the business will provide the kind of opportunity that you can be enthusiastic to build. If they feel you will be under financial pressure, they may close the file until that can be resolved so that you won’t be strained.
Now, two categories that are harder to measure. Relationships and following a process.
As you go through your investigation the people you work with at the franchisor and the franchisees that you validate with will be taking note of how you and they get along. They want to gauge how you will work with the team and franchisee organization once onboard. How you interact will tell the franchisor if you would be a positive brand builder.
In addition, they will be noting how you follow a system. The primary way they have to do that is to see how you follow the investigation process. They will have a multi-step process that they have found is an effective way for you to learn their business and for them to get to know you. If you follow that investigation process, make your scheduled calls (or reschedule in advance), complete any homework they give you and review the FDD to be prepared to discuss it, then you are off to a good start. If you don’t follow the process, it may raise red flags that you may not follow their system once you are a franchisee.
One other red flag along these lines is when a candidate comes in and tries to demonstrate their expertise by saying what they would change in the franchisors systems during the investigation of soon after becoming a franchisee. Yes,
e XPert ADvIce: George Knauf | Senior Franchise Business Advisor | FranChoice
George Knauf is a highly sought after, trusted advisor to many of the top franchise ownership groups in the world. With over 25 years of experience in both start-up and mature business franchise operations he is uniquely qualified to advise individuals that have dreamed of Building their own empires. Whether you have an existing portfolio or searching for your first franchise, he can help you to pursue your dreams.
www.MyPerfectFranchise.com
franchisors value franchisee ideas and input. Learn the existing system first, then tell them how you would change it. You might find there is a method to their madness.
At no point is there any benefit to you whatsoever in misleading the franchisor on your skills, financials, or anything else.
Buying a franchise is not like buying a car, the franchisor lives with their candidate choices for a long time. Nobody wants years of strained relationships, franchisees, or franchisors! Both sides want to make the very best possible decision.
What is your success story? Let’s go find it!
s even B R othe R s, o ne dR eam:
h ow w e sPR e A d A Loh A th R ough
g ood Food A nd FAMILy vALues
It all started in 1976 when a young Samoan surfer and a beautiful California girl fell in love and got married. This is the story of our mom and dad that would ultimately become the story of us—the “seven brothers.” It is a story of love, work, loyalty, and family.
Our dad came from an adoring Samoan family of 14 children. As fate took its course, eventually we came: us seven boys, one after another— boys, only boys, always boys, despite our parents’ longing for a daughter. As you can imagine, our house was a revolving door of chaos with lots of laughter, no privacy, friends funneling in at all hours, long talks about life, and constant rough-housing. Our parents taught us to love God, love others, and love surfing. Our
14 Franchising M aga Z in E Usa
F r A nch I sor I n D e P th: Seven Brothers
The story of Seven Brothers is not really about burgers. It is a love story, one that we are still telling today through delicious food.
most treasured childhood memories were the days soaking in the sun on white sandy beaches, escaping to the deep blues of the ocean, and service our parents found for us to do around our community. Family and community service were the two great pillars that us Hannemann brothers grew up to value above all else—to preserve the authenticity and dignity of our family values, and to prioritize serving others before ourselves no matter what. One December, we gave up getting presents to bring Christmas, clothing and bedding, to three homeless families. Another summer, we helped cut down 10 eucalyptus trees at an elementary school to make a safer child drop-off area. These are just two of countless experiences that shaped us as brothers and as a family to do more and be more for the community.
Despite facing the realities of raising a large family, our parents dreamt that all us boys would grow up to work and live life together. The dream of Seven Brothers Burgers was realized in Kahuku, right on the North Shore of Hawaii after we bought a hole in the wall restaurant on a whim in 2009. We were humbled very quick, but in time we found success with lines out the door and sometimes around the corner. Dad always used to say, “I think God is reaching down touching each burger with his finger.” I think he was right about that. Since then, it has always been about taking the time to make time for the community,
and to make sure that everyone who visits feels like a part of the family. I always like to say that food was never meant to be fast—it’s an experience meant to be shared and enjoyed with friends and family.
With Seven Brothers Burgers, I’m proud to say that we’ve created a community all its own, one that continues to blossom and thrive with each meal we serve. Although we have grown from the original seven brothers and have since started families of our own, making our head count a solid thirty-eight people deep, the dream is the same, and so is the place. Seven Brothers is where you will always find us aiming to serve God and others first.
With 6 locations currently open in Hawaii and Utah, the dream has always been to deliver a community-driven, family-oriented business model and dining experience. We believe that every community deserves a place to call home, a place where a meal is more than a meal—it’s a taste of “Aloha,” community, and family. We come from a huge family that is growing every day, and we consider every staff member and customer of SBB to be an extension of our family. Currently, we are looking for multi-unit franchisees in Arizona, Hawaii, Idaho and Utah who want to bring warmth, relaxation and a slice of beachy paradise to their local areas. Continuing to cultivate the family dream further throughout the United States has been a long-standing
goal of ours. While jumping into the world of franchising has been nothing but a blessing thus far, it is also a chance to do so much more beyond serving burgers. By franchising, we are bringing a piece of Hawaii to every market we enter, so it’s important that we maintain our family values and keep that authenticity intact as we expand. As we grow, we want the knowledge and appreciation for surf culture to grow, and we want communities to feel included in that no matter where they are. We believe people are starving for connection. Now a days, the priority for food is quicker faster, more convenient. We believe in taking the time with people with people to create a connection and feeling like no other. Biting into one of our burgers should taste like Kahuku, whether our customer is on the crystal shores of Hawaii or in the middle of the desert.
To those who say a backstory is just a backstory, I disagree. The “why” determines “what” you do and what you plan on bringing to communities. At its core, Seven Brothers Burgers is about family, love, and serving the community no matter what. Without the love that brought our parents together, and the love that kept all seven of us brothers together, there would be no Seven Brothers Burgers. A business cannot exist without its heart and soul, and for us, family is at the center of all we do.
Franchising M aga Z in E Usa 15
How M old Medics eM erges as a Key Player I n T h E Indoor A I r QuA l IT y InduST ry
“We get to help people who don’t feel comfortable, don’t feel safe or don’t feel like their homes are really healthy.”
who Is Mold Medics?
Based in Pittsburgh, Pennsylvania, Mold Medics has made a name for itself as a leader in the indoor air quality industry. The growing franchise offers high quality mold remediation services, air duct cleaning and home and office disinfecting. Additionally, Mold Medics provides radon testing and mitigation services and has done a lot of work to bring awareness of the dangers of radon through educational content.
Mold Medics, the emerging indoor environmental health concept, was created to provide a consumer-first home care service that’s not offered anywhere else. The brand is also a lucrative business opportunity for entrepreneurs looking to get involved with a growing industry.
The indoor air quality market size is expected to grow by more than $14
billion between 2021 to 2026, according to a recent report. And as more people are looking to create a safe and healthy home for their families, the demand for both mold and radon remediation services has also climbed in recent years. Mold Medics Chief Executive Officer Tim Swackhammer says that this puts the brand in a unique position to meet customer demand.
“There’s not really a strong market presence from a big, national brand offering radon mitigation,” said Tim Swackhammer, CEO of Mold Medics.
“Creating this educational content also helps to establish us even more as experts in the industry,” Swackhammer said. “That means that whenever people find us, it’s even more likely that they’re finding us organically via this content. And when they come to us, there’s more inherent trust there because they know, based on the information we’ve put out, that we’re someone they can rely on.”
For franchise owners looking for a flexible business, Mold Medics offers a number of lifestyle benefits that are often overlooked by other players in the industry. For example, franchise owners are able
16 Franchising M aga Z in E Usa h Ave your s Ay: Mold Medics
As the mold mitigation and indoor air quality concept continues to offer services like radon remediation and expand with franchise opportunities across the United States, now is the perfect time to get involved in the business.
to set their own schedules, and because the brand is not a 24/7, on-call service, it accommodates work-life balance. At the same time, franchise owners benefit from year-round business opportunities.
Mold Medics is also more affordable than other franchise opportunities in the industry, Swackhammer says. The initial investment to open a Mold Medics ranges between $83,049 and $158,999. And for qualified buyers, the brand offers franchise financing options.
As the brand continues to grow its presence around the country, prospective franchise owners will have the opportunity to establish themselves in their local market and scale their business through the brand’s proven business model.
Mold Medics Franchise growth
Mold Medics is currently seeking new franchise owners, and the team is looking to cast a net out to a “wide variety of different people,” Swackhammer says. There’s no blueprint for an ideal Mold Medics franchise owner, and the goal is to appeal to individuals who are looking to get into business for themselves. Whether it’s someone who has experience in the trade space and wants the chance to be their own boss or someone who’s interested in changing careers to something that allows them to grow and expand, there’s opportunities for everyone.
The Mold Medics network is currently offering franchise opportunities in places like Ohio, Michigan, Pennsylvania, Tennessee, New Jersey and more. The brand is also offering opportunities for both single and multi-unit franchise operators.
“We have a lot of complete markets that are available for somebody to come in and begin growing and expanding at their own pace,” said Swackhammer. “We’re looking to grow concentrically so we can have a good support system in place for onboarding franchises. That overlap is definitely something that makes our target markets appealing from a franchising perspective.”
why threshold Brands Acquired Mold Medics
In 2023, Threshold Brands, a leading multi-brand home services franchisor with over 500 units, announced its acquisition of Mold Medics. According to Ron Bender, the Chief Growth Officer at Threshold Brands, the acquisition of Mold Medics was a natural progression, as their shared values and goals perfectly align with Threshold Brands’ overarching mission. “The Mold Medics business fits very well with our portfolio of home services companies,” said Bender. “We already have had interest from some of our existing franchise owners to expand into Mold Medics, and it just seemed to be a logical expansion.”
Bender added that the acquisition will empower Threshold Brands to be able to provide an even wider range of essential home-based services. In conjunction with the services offered by its other franchises, the addition of Mold Medics further solidifies Threshold Brands as a comprehensive leader in the home services space.
“One of the big benefits of partnering with Mold Medics is that it advances our goal of expanding our presence in the home services industry,” said Bender. “It also fits in with our mission of helping people – not only the consumers whose homes we make safer by eliminating mold but also making sure that they don’t have radon levels that are too high. Additionally, we’re also helping more people pursue their dreams of business ownership.”
Swackhammer said that although his team wasn’t initially looking for acquisition opportunities when approached by Threshold Brands, it made perfect sense after discussing the potential partnership.
“I’m genuinely excited about the future of Mold Medics and the opportunities this partnership brings,” he said. “Joining forces with Threshold Brands allows us to tap into their established systems, practices and franchise partners. We can leverage their knowledge and experiences to further enhance our business operations, strengthen our franchise development and provide even better services to our franchise owners and customers nationwide.”
the Future of Mold Medics
Looking ahead, the future is bright for Mold Medics. Bender says that he envisions an ambitious growth trajectory for the brand and that Threshold Brands is looking to establish at least six new franchise locations in the next year and to expand into another 10 locations the following year.
“We know that there are many areas in America where radon is a big problem, and mold can be a huge health issue everywhere,” said Swackhammer, “Our objective is to grow consistently throughout the country.”
Franchising M aga Z in E Usa 17
In the world of franchising, expanding the reach of a brand and connecting with potential investors is essential for sustained growth. For franchise owners looking to tap into the international market, the North American Immigration Agency (NAIA) provides a unique opportunity. With their expertise in immigration and investor visas, NAIA can help franchise sellers gain access to a broader client base by facilitating international investment.
Curious how? Well, read this article because it explores how NAIA assists franchise sellers in expanding their sales overseas, leveraging certain investor visas that qualify prospective immigrants for entry into the United States.
The United States offers several investor visa options that provide opportunities for foreign entrepreneurs and investors to gain entry into the country while stimulating the local economy. The prominent visa programs that franchise sellers can utilize is the the E-2 Treaty Investor Visa.
The E-2 Treaty Investor Visa, allows individuals from countries that maintain treaties of commerce and navigation with the United States to invest in U.S.-based businesses. The investment must be substantial, with no specific minimum threshold. Franchise sellers can tap into this visa category by showcasing their franchises as attractive investment options for individuals from treaty countries. Through the E-2 visa, foreign investors can establish a presence in the United States and actively manage their franchised business.
NAIA specializes in helping franchise sellers navigate the complexities of investor visas and immigration procedures. With their deep understanding of the franchise industry and immigration laws, NAIA serves as a valuable partner in expanding franchise sales abroad.
NAIA assists franchise sellers by providing comprehensive guidance and support throughout the visa application process. They collaborate closely with franchise sellers, helping them understand the requirements of each investor
18 Franchising M aga Z in E Usa
visa category and ensuring that their franchises meet the necessary criteria. By assessing investors’ eligibility and connecting them with suitable franchise opportunities, NAIA plays a pivotal role in facilitating international investments.
NAIA’s presence at the International Franchise Expo in New York further underscores their commitment to promoting franchise sales overseas. Attending such industry events allowed NAIA to network with prospective investors, franchise sellers, and industry experts. It provides an opportunity to showcase their expertise, establish meaningful connections, and raise awareness about the benefits of utilizing investor visas to expand franchise sales.
Moreover, NAIA’s website serves as a valuable resource for franchise sellers, offering detailed information about the various investor visa programs, eligibility requirements, and the franchise opportunities that align with these programs. Their team of experienced professionals is readily available to address inquiries and provide personalized guidance to both franchise sellers and prospective investors. Expanding franchise sales abroad is an enticing prospect for franchise owners looking to grow their businesses and attract international investors. With the assistance of the North American Immigration Agency (NAIA), franchise sellers can tap into the potential of investor visas to connect with a broader client base. By leveraging programs like the EB-5 Immigrant Investor Program and the E-2 Treaty Investor Visa, franchise sellers can offer attractive investment opportunities that qualify prospective immigrants for entry into the United States. NAIA’s expertise, presence at industry events, and dedicated support make them a valuable partner in navigating the intricacies of international franchising and immigration.
For more information contact
Yannis Harrouche
Email: yharrouche@gonaia.com
Franchising M aga Z in E Usa 19
g ot v ideo?
How to c reate Fran d ev content tH at Boosts s ales
Over the past few years, franchisors have begun to see the inherent value of adding video marketing to their outreach efforts. Once thought too complicated, and possibly too expensive to boot, many brands are now discovering that tailored content targeted to achieve specific goals can have a positive impact on KPIs.
Following the lead of their big parent companies, middle-market franchisors are primarily using video for a few key purposes. Training videos have helped revolutionize the onboarding process for new franchisees. Testimonials and “Day in the Life” video shorts have helped boost franchisee recruitment efforts. And above all, video content that reinforces the brand’s mission statement and value propositions allows them to position themselves for further growth and expansion – both internally and externally. At its core, video content is about establishing social proof through storytelling. A means for franchisors to position themselves, not just in how they appear, but also in how they want to be seen. And that notion extends to both internal audiences (potential franchisees), as well as external audiences (consumers). Brand storytelling is a unique and powerful approach to marketing. It centers around using stories that feature real people, rather than simply emphasizing the product or service itself. And it allows us to tap into one of our most fundamental human needs - the need to connect with others visually through narrative.
But ask any franchisor what they really hope to get out of video marketing and the answer is unanimous – a good return on their investment. There are several ways to create franchise development content that boosts growth and furthers sales efforts. Below are some specific areas where video can have the most impact on both.
Frandev content that Moves the needle
Franchise development is about growth and expansion – the critical need to recruit new franchisees into the system, thereby strengthening the brand’s market share. Video can be a powerful tool in accomplishing that goal – especially if franchisors pay attention to the type of video that’s capable of moving the needle. The calculus is simple – to get more franchisees, you have to tell great stories. Some of the best advice to go about it? Don’t just tell stories for telling stories’ sake. You have to evoke emotion and make people feel something. Simply filming a testimonial video with an
existing franchisee, while a great start, isn’t enough. You have to capture the unscripted story. And most franchisors don’t know how to go about it. Jeff Gitomer is one of the premier authorities in sales and he has a famous quote: “People don’t like to be sold, but everyone likes to buy.” This meaningful statement sums up the power of video for franchise development efforts, and how to go about it effectively. Focus on the recruitment itself by utilizing testimonials that feature authenticity. Then, and only then, will you gain trust. Numerous studies and surveys have demonstrated that people buy what they trust - be it a car, backyard grill, or even a franchise opportunity.
getting testimonials Right
When it comes to showcasing an opportunity, product, or service, how long should a testimonial video be? Most franchisors believe it’s three to five minutes, but it’s actually much shorter than that - usually between 30 and 60 seconds. That’s because it’s short and engaging
20 Franchising M aga Z in E Usa sa
h Ave your s Ay: Trevor r appleye | Founder and CEo | FranchiseFilming
”
“ Brand storytelling is a unique and powerful approach to marketing. It centers around using stories that feature real people, rather than simply emphasizing the product or service itself.
content that paints a picture and grabs the viewer. Any idea what the average attention span is of an adult human? It’s eight seconds. Studies also show you have less than four seconds to gain the viewer’s initial attention. And only two-thirds of people will watch a video for more than a minute at a time. While there’s no hard evidence of causation here, we might as well blame it all on Tik Tok (I kid, I kid). As for some additional advice and tips, make sure you don’t rely heavily on scripted content. Videos that do often seem too robotic and lack the real emotion you’re going after. Instead, focus on having a natural conversation with your subject. Content created with this in mind is almost always more engaging and authentic. Also, you can have your CEO be the star, but that won’t necessarily resonate with your preferred audience. If you really want to connect with your target market, make sure you feature real-deal franchisees. Someone who looks like them, acts like them, and has achieved business ownership – something the viewer should want for themselves. You also need to film in more than one location, and the perfect example is the “Day in the Life” videos of existing franchisees. Masterfully edited, they can take the viewer on an eight-hour tour in less than one minute. Real franchisees with a real story to tell are how you get the social
between 30 and 60 seconds.
proof you need to sell the next franchise opportunity.
thoughts on B-Roll and Behind the scenes Footage
For those who are unfamiliar, b-roll footage is supplemental or alternative video footage that’s interspersed with the subject or main subject footage. Done right, it keeps videos from being boring and monotonous. It adds context and depth to what you’re communicating and should illustrate your subject matter in a way that keeps viewers engaged. After professional edits, b-roll footage helps you tell a more complete story for your brand, product, or service –all by providing the visual cues necessary to tie everything together in one tight clip. Another clever tactic you should always employ is the use of behind-the-scenes support video, especially when you’re on location. Oftentimes, it can truly set the scene of what occurred during the shoot, continuing to humanize the franchisor’s message, personnel, and values.
After you’ve made the decision to utilize video marketing and you have a final finished product, there’s one thing to remember. You have to use it – as much as possible and in as many places as you can think of! Add videos to your About Us page on your website. According to a video
marketing report by the Aberdeen Group, websites that include videos generate 34% higher website conversion rates than websites without them. Showcase your videos on a loop in trade show booths at franchise conferences and conventions. Add links to your videos in your corporate email signature files. Show off your videos on Zoom calls. And lastly, plan on a heavy rotation of video across the board on your social media channels. Keep in mind that, since 2016, there are more eyeballs on smartphones than desktops or tablets. Ultimately, whether you’re looking to increase sales conversions (external) or enhance engagement levels amongst potential franchisees (internal), incorporating video storytelling into your marketing campaign can be the meaningful social proof you need to create franchise development content that moves the needle for both efforts. And getting it right can make all the difference in the world.
AB out the Author:
Trevor Rappleye is the founder and CEO of FranchiseFilming, one of the leading video production companies in the franchising industry. He’s been an astute entrepreneur since 2003 - beginning his first company at age 13, converting VHS to DVD and filming family events, and remains obsessed with storytelling, leadership, video marketing and filming social proof for brands and franchisors. FranchiseFilming has done high-quality video production shoots for industry leading franchise clients such as Neighborly, CVS, Home Depot, ADP, and FASTSIGNS. Trevor can be reached at trevor@corporatefilming.com.
Franchising M aga Z in E Usa 21
”
“ When it comes to showcasing an opportunity, product, or service, how long should a testimonial video be? Most franchisors believe it’s three to five minutes, but it’s actually much shorter than that - usually
R ica’s Best p oké d e B uts in the c apital of count Ry m usic
The city of Nashville is a world-famous vacation hot-spot for a lot of reasons. One of those reasons is it’s the epicenter of country music and now add to that, it’s become a popular destination for great dining. Recently opened on May 22, Nashville residents and foodies alike will have a new and exciting food option to experience.
Island Fin Poké Co. is opening its 26th location in the U.S. and second location in Tennessee, bringing an entirely new explosion of flavors to the city of Nashville. Offering Hawaiian-style poké bowls, this fast-casual restaurant is set to become a go-to spot for locals and visitors alike, offering a unique dining experience that is not only incredibly fresh and delicious, but also healthy.
The brand is all about its “Ohana” culture, which focuses on creating a family-like environment for the various market segments it serves. In the Hawaiian language, Ohana translates
F r A nch I see I n Act I on: Island Fin Poké Co
Is LAnd FI n Poké co. I s ex PAnd I ng, And the BRAnd I s o Pen I ng the IR new Loc At I on I n nA shv ILLe, tn .
a me
to “family” which aligns with the family values Nashville is also known for.
The Nashville location franchisees, Scott and Tammy Fitzpatrick, offered guests a pre-grand opening treat by offering free customizable poké bowls to welcome their new community into their location. Offering chicken, tofu and spam protein options, aside from the traditional fish options of tuna, salmon, shrimp and octopus, Island Fin caters to all preferences with everything on their menu being gluten-free. Everything, including the menu, is customized to every guest’s preference offering a special, personalized experience on every visit.
“One of the reasons that inspired us to be a part of the larger Island Fin Poké Company is the core values of Ohana
(family), quality ingredients and amazing customer service,” explains Tammy. “As a family with food allergies, we understand how difficult it can be to eat out. Island Fin Poké Co. is extremely dedicated to doing the navigation for families like us so that we can just enjoy dining and spending time together. We want to share that experience of ease with everyone that walks through the doors of our location in Nashville.”
From its curated Hawaiian music to only using the freshest ingredients, every Island Fin Poké Co. location offers a six sensory experience, with the Ohana vibe being the sixth sense. This means each time a guest experiences a poké bowl at Island Fin, they are experiencing the IncrediBOWL, which is a term coined by Island Fin Poké to define the incredible flavors and the endless combinations of bowls guests can create.
“This is going to be a place where the community can go to get a wellbalanced, convenient, healthy and fulfilling meal any day of the week,” Tammy added. “We’re excited to introduce this unique concept to Nashville. Island Fin offers the community a healthy alternative in the fast-casual space. We source all our fish sustainably, make all our sauces in-house and are gluten-free!”
Thanks to Island Fin’s CEO and founder, Mark Setterington, and his high level of attention to detail, the most extraordinary and unique feature at every Island Fin, including the new Nashville location, is the absence of trash cans and dining trays in the dining room. Unlike all other fastcasual restaurants, every team member will serve each guest their meal and always clear the empty dishes and trash at the end of every meal – making the guest experience truly memorable.
“Nashville is known for having the greatest country music in the world and now is home to America’s best poké restaurant with our unique service model and brand,” says Setterington. “Nashville is a vibrant, colorful and dynamic city, which perfectly aligns with our vibrant, colorful, dynamic and delicious food. We can’t wait for our guests to enjoy the delicious flavors of the islands and experience our family-driven lifestyle and remarkable guest service.”
The Fitzpatricks also expressed that if anyone is interested in owning a franchise or is a young entrepreneur, one should seek a business opportunity with Island Fin. “We would encourage anyone looking into being a part of the brand to be inspired by the values of Island Fin Poké Company, how those values connect with you on a personal level and let that guide you. That’s what [Tammy and I] did! And we believe that is why the journey has been truly rewarding,” says Tammy.
For more information on the brand, visit www.IslandFinPoke.com/. For information on franchising and becoming a part of the Ohana, please visit www. IslandFinPoke.com/Franchise/.
Franchising M aga Z in E Usa 23
Harnessing tH e Power o F tec H nology For oP ti M al Franc H ise Mar K eting
streamline operations, improve efficiency, and enhance communication within their network. At its core, FranchiseSoft empowers franchisors to manage all aspects of their business from Sales, Marketing, Franchisee Management, Onboarding, Training, Support and Finance, from a single platform. This level of integrated functionality is vital for franchisors juggling a complex web of responsibilities, from franchisee compliance to brand consistency.
As the global franchise landscape evolves, so too does the pivotal role of technology in franchise management and marketing. The new era of franchise operations has technology as its lifeblood, powering everything from everyday operations to strategic decision-making.
Successful franchisors understand the vital role technology plays in ensuring franchisee success and the overall growth of their brand. Two companies leading this transformation in the franchise sector are FranchiseSoft and ClickTecs, both under the stewardship of the forward-thinking CEO, Jamshaid (Jam) Hashmi.
FranchiseSoft is an innovative franchise management software that allows franchisors to assist with franchise sales,
More specifically, FranchiseSoft provides a suite of tools for lead management, franchise performance tracking, royalty calculations, territory management, and more. Its cloud-based interface allows franchisors and franchisees to access crucial data anytime, anywhere, providing real-time visibility into operations. It’s no longer about merely managing a franchise – it’s about leveraging technology to drive growth, maintain brand consistency, and optimize operations.
On the marketing side, ClickTecs, also led by Hashmi, offers a robust range of digital marketing solutions specifically designed for franchisors. The digital age has revolutionized marketing, opening new avenues for brand promotion, lead generation, and customer engagement. Yet, navigating this digital landscape can be a complex task. That’s where ClickTecs comes into play.
ClickTecs assists franchisors in reaching their target audiences more effectively using strategies like Search Engine Optimization (SEO), Pay-Per-Click (PPC) advertising, social media marketing, and website design. Their digital solutions help franchises establish a powerful online presence and attract the right audience, driving sales and enhancing brand recognition.
The agency’s comprehensive approach to digital marketing ensures that franchisors
24 Franchising M aga Z in E Usa
s P otl IG ht on serv I ce: ClickTecs
CEO, Jamshaid (Jam) Hashmi
can harness the power of technology to stay competitive in the digital marketplace. In essence, ClickTecs transforms the internet into a powerful marketing tool for franchises, leveraging online platforms to reach potential customers, engage existing ones, and ultimately, boost franchisee success.
The integrated technology offered by FranchiseSoft and the digital marketing solutions from ClickTecs can dramatically improve the way franchisors operate and market their businesses. Both companies, under Hashmi’s leadership, assist more than 150 franchisors across verticals such as Automotive, Senior Care, Children’s Education, Home Services
and Restaurants, showing the immense potential of technology in marketing and managing franchises.
So, why is this shift towards technologydriven franchise management and marketing so crucial?
Firstly, it’s about efficiency. Traditional methods of managing franchises using spread sheets and rubber bands, are time-consuming and prone to errors. Technology like FranchiseSoft simplifies these processes, freeing up time and resources for franchisors to focus on strategic decision-making and growth, all the while keeping a single source of truth in a centralized platform.
Secondly, the rise of digital marketing has brought about a paradigm shift in how businesses reach their customers. Gone are the days where half of a franchisor’s marketing dollars were wasted, without knowing which half. In a world where consumers spend an increasing amount of time online, having a strong digital presence is no longer an option – it’s a necessity. ClickTecs helps franchisors navigate this new marketing landscape, ensuring they’re not left behind as the digital revolution continues to unfold and through tracking data and analytics, empowers franchisors to make data driven marketing decisions.
Finally, utilizing technology helps maintain consistency across the franchise network – a vital aspect for any franchise brand. It ensures that every franchisee is singing from the same hymn sheet, providing the same high-quality experience that customers expect from your brand, wherever they are in the world.
In conclusion, technology is reshaping the franchise industry in countless ways. Through the expertise of companies like FranchiseSoft and ClickTecs, franchisors can harness this wave of technological innovation to enhance their operations, market their brand effectively, and ensure the success of their franchisees. As the CEO of both these groundbreaking companies, Jamshaid Hashmi is at the forefront of this technological revolution, paving the way for a new era of efficient, effective franchise management and marketing.
For more information please email jam@clicktecs.com or visit the website www.clicktecs.com
Franchising M aga Z in E Usa 25
”
“ The digital age has revolutionized marketing, opening new avenues for brand promotion, lead generation, and customer engagement.
Building a l asting l egacy in the Restau R ant i ndust Ry
In the dynamic and fiercely competitive restaurant industry, building a brand that withstands the test of time requires a unique blend of vision, passion and innovation that extends beyond menu and the dining experience.
Concepts are constantly being created, seeking to capture share from existing brands, or to meet the evolving wants and needs of younger guests. Established brands need to stay relevant, marketing where guests are discovering brands in addition to meeting guest expectations for product and delivery.
Restaurant franchise organizations that endure and thrive constantly challenge themselves. For example, Slim Chickens and Walk-On ‘s (two brands in 10 Point Capital’s portfolio) both celebrate 20 years in business this year. While both brands hold true to their roots and have a deep understanding of what they stand for, they have also evolved substantially over the years, whether in terms of menu mix, sales channels, or how they engage with current and future guests.
Adapting to evolving consumer Preferences
In today’s rapidly changing marketplace, established brands must adapt to evolving consumer preferences to remain relevant, competitive and to effectively connect with a wide fanbase. Brands that fail to adjust
26 Franchising M aga Z in E Usa e XPert ADvIce: Morven Groves | Managing Partner
their strategies risk being left behind and losing market share to more agile and guest-centric competitors.
For example, off-premise has emerged as a transformative force within the restaurant industry, and represents a substantial revenue stream. In response to the growing demand for convenience, flexibility and seamless transactions, restaurants have adapted their offerings to accommodate a variety of off-premise options, such as online ordering, mobile apps and thirdparty delivery services.
Even full-service restaurant concepts traditionally chosen for their sit-down guest experience need to meet this guest need. Walk-On’s has recently upgraded their online ordering system, allowing guests to order via the website, via an app, or through third-party channels. For the guest, the result is a more tailored and streamlined experience.
While some brands resist participating in third-party online ordering, we believe it is a critical part of the equation. Brands need to be where guests are, and guests have embraced online ordering platforms. If the brands deliver and build preference, they are often able to transition their most regular and valuable guests to their own platforms given the distinctive, customized experience they can deliver.
capitalizing on new technology and Innovations
Capitalizing on new technology and innovations is critical to maintaining
relevance and competitiveness in an ever-evolving market. Cutting-edge technology not only enhances operational efficiency but also fosters seamless customer experiences, which is crucial to establishing the strong brand identity that can build loyalty. From adopting advanced point-of-sale systems to automation, forward-thinking restaurant brands can streamline their operations, provide more efficient customer service and enhance the overall dining experience for guests. By staying ahead of the curve and leveraging technology to its fullest potential, brands can differentiate themselves from the competition and ensure they thrive for years to come.
Walk-On’s recently made its largest technological investment in brand history, partnering with Lunchbox to upgrade its online ordering platform and guest loyalty program, as well as introducing a partnership with Toast to level up its POS management system. Similarly, Slim Chickens was an early adopter of the learning technology platform OnTrack to eliminate paper checklists in favor of digital, helping to optimize operational efficiency.
keeping guests at the Forefront
Enduring brands understand the importance of prioritizing their guests and work diligently to keep them top-ofmind. They recognize that their longstanding success is rooted in cultivating strong relationships with loyal guests and providing the exceptional experiences that will have guests return.
Brands like Walk-On’s and Slims Chickens are committed to finding innovative ways to exceed guest expectations in terms of quality and value and achieve this by utilizing strategies such as LTOs and loyalty programs. Keeping menus fresh,
exciting and up to speed with trending tastes and consumer preferences ensures happy guests that are likely to return. Likewise, loyalty programs foster strong customer relationships, incentivize repeat business and encourage new customers to engage with the brand and be recognized for their loyalty. Walk-On’s, for example, recently implemented an enhanced loyalty program, allowing them to reward new and returning customers both online and in-restaurant.
setting your concept Apart through distinctive Branding
While it may seem obvious, distinctive branding is critical. In a crowded marketplace, where numerous brands compete for consumer attention, what sets a brand apart from its competition needs to be clear.
A strong distinctive brand identity sets the stage for creating a legacy. Smalls Sliders, a quick service cheeseburger slider brand established in 2019 and a recent addition to 10 Point Capital’s portfolio, has already created a concept with a fanatical following. With unique brand lingo, like ‘slide-thru’ and ‘can drop’, plus its innovative restaurant design structure that features bright orange recycled shipping containers, Smalls Sliders is rapidly making inroads into the competitive burger segment.
conclusion
Brands that create a legacy understand that they need to stay relevant and appeal to new generations of consumers by adapting their strategies to meet changing demands. Embracing technological advancements, engaging guests through innovations and establishing a brand identity that resonates with consumers are all key factors that contribute to multi-decade success in the restaurant industry.
Franchising M aga Z in E Usa 27
Morven Groves has spent over 15 years investing and advising in travel and hospitality businesses, with 10 years focused on franchising. She is passionate about growing brands, in the right markets, with the right partners. She works closely with the management teams of 10 Point Capital’s portfolio companies, to help them set strategy, and execute on growth goals.
Pic K le Ball Kingdo M Has Massive Franc H ise Plans For
aM erica’s Fastest- g rowing sP ort
As the fastest-growing sport in the United States, pickleball mania is sweeping the country and attracting thousands of participants of all ages. It was only a matter of time before someone became the leader of the burgeoning sport through franchising.
“Someone” is Ace Rodrigues, an entrepreneur in Chandler, Arizona, and CEO and founder of Pickleball Kingdom, which is one of the largest indoor pickleball facilities in the country. How he landed in the pickleball franchising business can be described as a fortunate stroke of serendipity, or as Ace prefers to say, “I was the right person at the right place at the right time.”
Ace Rodrigues owned a financial services business that employed more than 300 agents and brokers in three states before selling the business in 2007. Describing himself as a “serial entrepreneur and investor,” his next big business idea happened when he and his friends became avid pickleball players and encountered all the same problems “pickleballers” face. Finding places to play was often frustrating and further complicated by long waits because they were unable to reserve court time. When they were able to find a court, it was often either too hot, too cold, or the courts were too dirty. Worst of all, even a tame wind would spoil games, as the light wiffle balls would blow away and make playing pickleball games impossible. On January 9, 2021, Ace and his friends were standing outside on a pickleball court and realized they could not play because it was too windy. At that moment, he had an epiphany. What if he could take weather conditions out of the equation?
28 Franchising M aga Z in E Usa sa
F r A nch I sor I n D e P th: Pickleball Kingdom
What if he could build indoor, climatecontrolled courts where people could play comfortably all year long?
And just like that… Pickleball Kingdom was born.
Barely a year later, Ace opened the massive club in Chandler. The state-ofthe-art facility offers 15 immaculate indoor courts, professional instruction, equipment rentals, free classes, a snack bar, pro shop, and a mezzanine viewing area. Drop-in Play is offered every day, and players benefit from a customized experience. All skill levels and ages are welcome, and tournaments are held frequently throughout the year. Pickleball Kingdom was immediately popular with players and investors, which prompted Rodrigues to introduce a franchise model in 2023. By his own admission, he explained that owning a pickleball facility is no small undertaking.
“We all know how much fun pickleball is,” Ace said. “What’s not fun is waiting for a court, playing in the cold or in the heat with the sun in your eyes, or having the wind affect your game. We’ve solved all those problems in Arizona. Our team learned from trial and error, but now we have a successful playbook that will help any potential franchisees who are interested in starting their own Pickleball Kingdom. We call the operations manual the ‘Keys to the Kingdom,’ and
this blueprint is enabling us to expand nationwide.”
Franchising will help ease the challenges of owning and operating a pickleball court, according to Ace. Real estate is usually the first step, but building a facility can be daunting when it’s a large space of 30,000 – 45,000 square feet.
“There are so many layers of thinking that go into putting together a club that flows and will provide the user experience that players want,” he said. “But after it’s built is when the real issues will appear.”
Challenges to consider include how much to charge for court rentals, what technology to use, how to deal with suppliers, where to order equipment, advertising, marketing, and how to run leagues and tournaments. Ace noted this is just a partial list leading up to Day One.
“No matter how proactive and intentional anyone is, they will make a mountain of mistakes,” he said. “The good news for our franchisees is that we’ve made the mistakes on our dime, and they will get the benefit of the iterations we’ve made to our system before they launch their Pickleball Kingdoms.”
Pickleball Kingdom recently announced the awarding of a five-unit franchise deal in the Dallas-Fort Worth metroplex, the first in a lengthy list of cities targeted for indoor pickleball courts across the
country. The first Dallas unit is slated to open in the first quarter of 2024. Dan Jenkins, the newly appointed franchisee, said he is honored to join forces with Pickleball Kingdom and bring the indoor pickleball experience to his home city of Dallas. With Pickleball Kingdom’s proven track record and commitment to excellence, he is confident that Dallas club members and visitors will agree with Pickleball Kingdom’s value statement of, “Life is better with Pickleball.”
Since the announcement of the Dallas locations, Pickleball Kingdom is receiving interest from potential franchisees throughout the country. Ace predicts Pickleball Kingdom will have 120 locations by the end of 2024 and 320 by the end of 2025. At the heart of the business is the company’s core belief that playing pickleball is good for you physically, socially, and spiritually.
“We see the fruits of this every day,” Ace said. “Another one of our five Core Beliefs is that our greatest asset is our community. We believe the most rewarding thing about owning a Pickleball Kingdom is to help grow a community of vibrant people who love life -- because after all, life is better with pickleball! And that’s another one of our Core Belief statements.”
Franchising M aga Z in E Usa 29
latest ne Ws in top f R anchises
feature article
the top t R ends
sh API ng the MAR ket
haV e YO ur saY fielding calls while wo R king in the field
expert adV ice five keys to B eing a top
pe R fo R ming f R ancise system
stagecoach
the pr O gressi O n O f the perfO rming arts sectO r
2023
jULy
www.franchisingmagazineusa.com don’t miss an issue get tHe aPP 10 Franchising MagaZinE Usa cover story: The Entrepreneur’s Source® Leading Career CoaCh dediC ated to h e Lping Veterans aChieVe professionaL suCCess “ Coaching allows me to achieve my lifestyle and career goals while providing a valuable service.” Madden launched his career coaching business in 2018 after spending 16 years in the U.S. Army and Marines. Motivated by a profound sense of duty following the tragic events of the 9/11 terrorist attacks, Madden responded by enlisting in the Marines as an infantryman. His military experience instilled deep commitment to safeguarding our nation and upholding democratic principles while also sowing the seeds of his future business. During his time in the service, Madden acquired invaluable lessons in collaboration, effective leadership, safety protocols, and unwavering commitment to excellence. Notably, he was deployed to Fallujah, Iraq, where he played an active role in Operation Phantom Fury — one of the most violent battles of the Iraq War. After suffering an injury during the war, Madden exited the Marines and briefly took a job as corrections officer in Montana before joining the Army to conduct counterintelligence work. While stationed in Italy, he spearheaded the coordination, management, and deconfliction of the Army’s counterintelligence operations in Africa. As part of this role, he completed the Army’s first biometric equipment fielding project in Senegal, which improved the country’s border security and intelligence capabilities. Post-military service, Madden joined The Entrepreneur’s Source to provide career ownership coaching to veterans and other people experiencing a career transition. “Coaching allows me to achieve my lifestyle and career goals while providing a valuable service,” Madden said. Madden was recognized with the prestigious “2023 40 under 40” honor by Albuquerque Business First. This annual accolade is awarded to young individuals who consistently surpass expectations in their professional endeavors and community contributions. Military a Steppingstone to Entrepreneurial Success There are at least 18.4 million veterans in the United States. Given the valuable skills veterans learn in the military, it’s not surprising the unemployment rate for former military members is lower than for their non-veteran counterparts. Unfortunately, many former service members are overqualified for their current roles. After being out of the service for three years, at least 61% of veterans suffer from underemployment, according to The Veterans Metrics Initiative at Pennsylvania State University. The military has a unique culture, values, and way of life. After time in the service, some veterans may find it difficult to adjust to civilian society’s norms, expectations, and behaviors. Transitioning to civilian life often means losing the familiar structure of the military, which can leave veterans feeling disoriented and uncertain about their future — and finding the right job can be challenging. Drawing from his personal experience, Madden is deeply committed to helping veterans effectively navigate the transition to civilian life. For the past five years, he has dedicated his time to volunteering for Veterati, an organization that offers mentoring services to unemployed or underemployed veterans and their spouses. “Veterati provides veterans with valuable mentoring to help them gain a foothold in Jason Madden, a career ownership coach at The Entrepreneur’s Source®, dedicates his time and expertise to mentor fellow veterans, enabling a seamless transition to civilian life. the job market,” Madden said. “The online platform makes connecting with veterans and their spouses who need guidance and support easy.” Madden also conducts Military Transition Assistance Program employment and skills workshops through the U.S. Department of Labor and the Department of Defense. As part of the Kirtland Air Force Base program in New Mexico, Madden hosts formal career transition workshops and helps veterans write resumes, develop personal branding, and more. “Being able to help veterans is important to me. did the transition from the military. know veterans do not want to hear platitudes. Even if you’re a senior officer, you’re just regular Joe when you retire. It VOL 11, ISSUE 7, jULy 2023 The magazine for franchisees • WWW.franchisingmagazineUsa com Building a lasting legacy in the RestauR ant industRy how do we select gReat locations? special feature top fR anchises fR anchise stR ategy cOVer stOrY the entRepReneuR’s souRce® jason madden is dedicated to Helping Veterans annOuncements frOm the industrY fR anchising news
top F ranchis E s FE at U r E contents
34 Franchising News Announcements from the Industry
36 Chris Conner: the top Franchise trends shaping the Market Franchisee
38 GymGuyz: From childhood best Friends to brothers-in-Law & business partners
44 Papa Johns: nadeem bajwa-From delivery driver to papa Johns Franchise Mogul
Snapshot
42 Talkin Tacos: “Less talkin-More tacos” Mexican concept Forges ahead Using technology as it’s Leader Have Your Say
48 Peter Roberts: the Franchise benefits of small business collaboration
52 Moneypenny USA: Fielding calls while Working in the Field
Franchisor in Depth
50 Stagecoach Performing Arts: the progression of the performing arts sector
Expert Advice
40 Evan Hackel: Five Keys to being a top-performing Franchise system
46 Rick Bisio: Franchising in 2023: Fewer risktakers, but still some Experimentation
Franchising M aga Z in E Usa 33
What’s New
Feature Article
in Action
36 40 46 42 52
ng s en I o R s e Rv I ce Expands its Services by Opening Second California Location
Caring Senior Service, a private-duty, non-medical home care services company, has expanded its reach into the California market with a new location in Orange County owned by missions pastor and businessman Dean White.
“ t he senior population in o range county has seen significant growth over the past several years and has a number of hospitals, rehabilitation centers and senior communities who will be better served by a having a c aring s enior s ervice location in this area,” White said. “ it’s my desire to help families navigate through the labyrinth of senior services as they look at options for their aging loved ones. i ’ve been in their position and i know firsthand how overwhelming it can be. i want to make this experience as pleasant and seamless as possible.”
White is native of c alifornia and grew up in o range county. h e has served as a missions pastor for s addleback community church in Lake Forest, c alifornia for nearly four years and has worked in brand marketing and as a wealth advisor for most of his professional career.
“c alifornia is expected to have one of the fastest growing aging populations in the country over the next 20 years, and this new location will help serve the needs of o range county’s aging and disabled residents,” said c aring s enior s ervice cEo and founder Jeff s alter.
White said he wants to make c aring s enior s ervice of irvine known as the best workplace for caregivers in o range county in addition to offering the most comprehensive list of home services for the aging community.
https://www.caringseniorservice.com/irvine
LIM
e
PAI
nt
I ng Named One of 2023’s Top New and Emerging Franchises
LIME Painting was recognized as one of the Top New and Emerging Franchises for 2023 in the May/June issue of Entrepreneur magazine. The ranking highlights some of the strongest companies that have begun offering franchise opportunities in the last five years (since 2018). LIME Painting was ranked #16.
“ to be recognized for our hard work and dedication, is a tremendous accomplishment for our brand,” said nick Lopez, founder of LiME painting. “ but our efforts don’t stop here. We are always working on expanding and making our business model even more efficient for our stakeholders. While this award is a sign of our success, it is also a sign that we have must keep going and serve communities in which we establish business in.”
t here are approximately 800,000 franchised businesses across the U. s ., providing over 8.4 million direct jobs and generating over $800 billion in economic output. according to o xford Economics, franchising on average provides higher wages and better benefits than non-franchised businesses, as well as greater entrepreneurial opportunities to minorities, women, veterans, and other underrepresented communities.
LiME painting offers 40 different painting, coating, and surface restoration services, but the brand is much more than that. LiME’s values of love, integrity, mission, and excellence motivate them to provide the best service possible using the highest quality products to maintain the aesthetic and structure of luxury properties.
For more information https://limepainting.com/lime-paintingof-northern-colorado.html
34 Franchising M aga Z in E Usa
cARI
ho M e serv I ces F r A nch I s I n G F e A ture
Continues to be Recognized as Top I.T. Franchises
Cinch I.T., a leading Managed I.T. Services franchise based in Massachusetts, continues to receive regional and national attention for its ongoing success with growth and its services.
t he franchise was recently ranked in the top 150 Fastest g rowing companies in the n ortheast by inc . Magazine highlighting its 84% growth rate and was included in crn ’s 2023 Manage s ervice provider 500 list. additionally, cinch i t. has been receiving praise locally by receiving the b est i t s ervice provider award from the Worcester business Journal for the sixth consecutive year and being named one of this year’s Fast 50 by the b oston business Journal.
cinch i t. began this year hosting its convention called, “cinchcon 2023: t he power of Winning together” in atlanta, at the center parc stadium, which is home to the g eorgia state football team and previously to the 1996 summer o lympic g ames and atlanta braves. t he convention united cinch i t. locations from across the Us to discuss and plan how to further grow their businesses.
Louisville franchisee owner, Jonathon Means, was recently named to the nsba (national small business a ssociation) alongside other small-business advocates from across the country as they work to promote the interests of small businesses to policymakers in Washington, d c cinch i t. has had a phenomenal first half of 2023 and looks to continue this trajectory throughout the rest of the year. “We are truly honored and appreciate all the recognition and accolades we have received so far this year,” said r ick porter, president of cinch i t. “ it was amazing to see all our franchisees nationwide at cinchcon 2023, and to share how we look to continue our ongoing success as well as future growth. We are thrilled with all our accomplishments thus far, and hope to finish the year strong.”
For more information on Cinch I.T., please visit https://cinchit.com/
Fetch! Celebrates 20 Years of Providing Exceptional Pet Care Service
Fetch! Pet Care® - America’s largest and most trusted professional dog walking and pet sitting franchise - is proud to celebrate its 20th year in business after opening in 2002 and beginning to franchise in 2008. Phoenix Franchise Brands would later acquire the company in March of 2020.
With nearly 130 locations currently operating throughout the U. s ., Fetch! pet c are has established itself as a leader in the pet services industry through its emphasis on safety and reliability. since its inception, Fetch! pet c are has been committed to providing a proven business model to franchise owners, helping them streamline their operations and improve their bottom line.
Fetch! pet c are provides its clients with a variety of various pet care services including: puppy sitting, dog walking,
overnight care, pet taxiing and pet medical administration. Each member of the Fetch Family is insured, background checked, and a highly-experienced animal lover with a passion for proper caretaking. Founded in 2002 and franchising since 2021, Fetch! pet c are prioritizes the “consistent” aspects of in-home puppy care, ensuring that all furry friends are always well-looked after in the absence of their owners.
“We are thrilled to celebrate our 20th anniversary, and we couldn’t have done it without the support of our loyal customers,” said g reg Longe, cEo of Fetch c are. “ in the past two decades, we have worked tirelessly to provide exceptional services to franchise owners, and we are committed to continuing to do so in the years to come.”
https://www.fetchpetcare.com/.
Franchising M aga Z in E Usa 35
t he top fR anchise tR ends s haping the m a R ket
Franchising has continued to thrive post pandemic and in both good and bad economies as a popular business model that offers entrepreneurs a proven framework and established brand to build their own successful ventures.
The franchise industry continues to evolve, driven by changing consumer preferences, technological advancements, and economic shifts. In this article, we will explore the top franchise trends currently shaping the market and influencing the way businesses operate and grow.
technology Integration:
One of the most significant trends in franchising is the integration of technology across various aspects of the business. Franchises are leveraging technology to streamline operations, enhance customer experience, and improve overall efficiency. For instance, many franchises are adopting cloud-based systems for inventory management, employee scheduling, and customer relationship management. Additionally, mobile apps and online platforms are being utilized to offer seamless ordering and delivery options, allowing customers to interact with the brand conveniently. One tech franchise we like a great deal, DDS Computers provides
technology support and services in the dental services market segment and offers incredible value: https://ddsfranchise.com/
health and wellness:
As society becomes increasingly healthconscious, franchises that cater to the wellness industry are experiencing tremendous growth. Fitness centers, healthy food franchises, and wellnessfocused services are gaining popularity. Consumers are seeking convenient and accessible options to improve their physical and mental well-being. Franchises in this sector are not only providing fitness facilities but also incorporating technology, personalized training, and innovative
36 Franchising M aga Z in E Usa Fe Ature ActIcle: Chris Conner | Founder | Franchise Marketing Systems
to P F r A nch I ses F e A ture
wellness programs to differentiate themselves in the market.
One of the brands we see big upside for in this space is the Empower Meal Prep franchise, which brings healthy, great tasting meals to the customer’s home: https://empower-mealprep.com/
sustainability and ecoFriendly Practices:
In recent years, sustainability has become a crucial consideration for both businesses and consumers. Franchises are incorporating eco-friendly practices and promoting sustainable initiatives to appeal to environmentally conscious customers. This trend includes using renewable energy
c hris 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. v isit www.fmsfranchise.com for more information
appreciate the ability to tailor their experiences to their preferences. Franchises that prioritize personalization not only attract new customers but also foster loyalty by creating a sense of ownership and connection.
social Media and Influencer Marketing:
sources, reducing waste, implementing recycling programs, and sourcing ethically produced products. Green franchises are capturing the attention of consumers who prioritize environmental responsibility, thus boosting their market presence and customer loyalty. A solid business model in this market is the Green Earth Power Washing franchise system: https:// greenearthpowerwashfranchise.com/
non-traditional Locations:
Franchises are increasingly exploring nontraditional locations to expand their reach and cater to changing consumer behavior. This trend involves setting up franchises in unconventional spaces such as airports, train stations, malls, and even mobile units. By bringing their products and services to where the customers are, franchises can capitalize on high foot traffic areas and target new demographics. This approach allows for greater flexibility and the ability to adapt to evolving market dynamics. One great franchise system that can capitalize on this market trend is the Spins Sweet and Savory Franchise Model: https://www. spinsfranchising.com/
Personalization and customization:
In today’s era of personalized experiences, franchises are focusing on customization to meet individual customer needs. Franchises offering customizable products or services are thriving in the market. From personalized nutrition plans to build-your-own meal options, customers
With the rise of social media platforms, franchises are increasingly utilizing influencer marketing to expand their brand reach and engage with target audiences. Partnering with popular influencers and micro-influencers allows franchises to leverage their online presence and tap into their followers’ trust. Influencer collaborations, sponsored content, and social media campaigns help franchises generate buzz, create brand awareness, and drive customer engagement.
Remote and home-Based Franchises:
The COVID-19 pandemic accelerated the adoption of remote work and home-based businesses. Franchises that offer flexible work models, such as remote or homebased operations, have gained prominence. These franchises allow individuals to run their businesses from the comfort of their homes, offering benefits like reduced overhead costs and increased work-life balance. This trend has attracted a diverse pool of entrepreneurs, including parents, retirees, and individuals seeking alternative career options. A amazing brand that fits the mold here is the Trash Gurl franchise model, big numbers, big market and huge opportunity: https://trashgurlfranchise. com/
International e xpansion:
Globalization has opened doors for franchises to expand internationally. Established franchises are increasingly venturing into new markets, capitalizing on untapped consumer bases in different countries. The globalization trend allows franchises to adapt their business models to local preferences
For more information on some of the top franchises in the market, visit www.FranchiseConduit.com for research and information on these brands.
Franchising M aga Z in E Usa 37
Fro M cH ild H ood Best Friends to Brot H ers-in- l aw & Business Partners:
How Two Entrepreneurs Brought In-Home Fitness to Their Hometown with GYMGUYZ
Sam Langer and Jimmy Bonavita are a pair of childhood best friends whose professional and personal lives have become as entangled as any two friends could possibly be. When Sam and Jimmy met in elementary school in Irvington, NY, no one could guess that the two would stay such close friends, eventually becoming business partners and even brothers-in-law.
As the first franchisees of GYMGUYZ®, the largest in-home and on-site personal training company in the world, Sam and Jimmy had no idea what their lives would look like 10 years down the road. Their involvement with GYMGUYZ started thanks to a casual conversation over a plate of brownies in Mexico, and the rest, as they say, is history.
The duo now runs up to 1,000 sessions a month with the help of 20 employees across the Westchester area, and they have seen clients physically transform through their mobile personal training program.
sam & Jimmy’s Background
Sam and Jimmy had a unique experience of being the first ever franchisees for GYMGUYZ’s franchise blueprint. Given their success from day one, they now advise new franchise partners to help set them up for success.
As the brands’ most veteran franchisees, Sam and Jimmy have grown up alongside their business. Their relationship as business partners was rooted in decades of friendship. When the duo married two sisters, their franchise became a family affair; raising the stakes for success, but ultimately strengthening their bond.
Sam has a Bachelor’s of Science from Indiana University’s Kelley School of Business with degrees in Finance and Operations Management, and is a National Academy of Sports Medicine Certified
Personal Trainer, and International Sports Science Association Certified Personal Trainer.
Jimmy is a Certified Personal Trainer with a specialty in group fitness training. He earned his certification through the National Academy of Sports Medicine and brings a wide-ranging skill set to his clients. He began honing his skills in his college days, where he played football as an offensive lineman for Sacred Heart University. Additionally, he earned his Communications degree from Coastal Carolina University in 2012. Jimmy also serves as a youth sports coach in his community, with a goal to bring out the inner athlete in all of his clients, regardless of age or ability.
In 2014, Jimmy and Sam signed on as the first GYMGUYZ franchisees and have loved every day working together since. In navigating the highs and lows of being business co-owners, brothers-in-law, and lifelong friends, Sam and Jimmy have learned a thing or two about where to draw the line.
“The key to sustaining such a strong friendship and business partnership all starts with being transparent with one another,” said Jimmy. “You have to communicate, if not overcommunicate, when you decide to intertwine your career goals with someone you have a personal relationship with. Let the other person know what you are working on, what your strengths are, and most importantly, what you really think.”
giving Back to the community
Strong advocates for giving back to the community in which they grew up and now currently serve, Sam and Jimmy donate to and regularly support Alexandra’s
38 Franchising M aga Z in E Usa F r A nch I see I n Act Io n: GyMGuy Z
to P F r A nch I ses F e A ture
Playground, a local charity that gives the ‘gift of play’ by building playgrounds for deserving communities in the NY-NJ-CT tri-state area. They also work with adaptive populations, ensuring that their trainers have the correct certifications to assist adults and children with special needs.
Additionally, they are heavily involved with PTA boards, donating sessions to help better children’s health. They run afterschool programs at pre-schools, middle schools, and high schools, and offer fitness classes at hospitals, assisted living homes, and health companies.
“Working together to make our community a healthier place has been a true blessing,” said Sam. “Our friendship is based on honesty and understanding, which is why we are able to not only succeed in our business efforts, but our charitable efforts as well. Our business relationship was built on a handshake that specified who would handle what part of our business. We each understand what we need to do to support each other, and know that we need to respect boundaries. Letting someone know that you trust them builds mutual respect into your partnership.”
With many success stories under their belts, the ones that stands out the most was helping a 280-pound teenager lose 120 pounds through consistent workout
sessions and a healthy meal plan.
Looking to the Future with gyMguyz
“Helping our clients commit to a healthier lifestyle and build confidence is the drive behind everything that we do at GYMGUYZ,” said Josh York, Founder & CEO. “Sam and Jimmy have truly grown alongside our #1 in-home personal training company, as they were our very first franchisees, and have proven our business model to be highly effective. New and existing franchisees regularly turn to them for advice, and I couldn’t be prouder of what they have accomplished. I look forward to seeing what they do next.”
Josh York, Founder & CEO, started the GYMGUYZ business after noticing dozens of reasons why many people aren’t consistent gym-goers, such as lack of accountability and motivation. Using those reasons as his own motivation, he wanted to create a concept that made fitness convenient and accessible. That concept turned into GYMGUYZ, the business that Josh began in his parents’ house in 2008. Changing over 100,000 lives since the company was founded, GYMGUYZ is the largest in-home and on-site personal training company in the world, redefining physical fitness by bringing the workout
to clients, when and where it’s convenient for them. The company announced the addition of 18 new territories over the last year, contributing to its overall growth goal of another 75 territories by the end of 2023. Jimmy and Sam have been with GYMGUYZ since the beginning, and were humbled to celebrate the brand’s 15-year anniversary. They both look forward to being a part of the future, paving the way for its next era of growth.
To set the stage for accelerated development, GYMGUYZ recently opened a two-story, 18,000 square-foot headquarters in Melville, New York, only a short drive from Sam and Jimmy’s territory.
As the brand continues to grow in size, it also grows in its service offerings. GYMGUYZ has launched highlysuccessful new fitness programs outside of in-home workouts, offering B2B fitness programs at corporations, schools, and senior living centers. The brand has fast become a critical provider in the corporate wellness space, developing on-site and at-home fitness programs for some of the world’s largest corporations. As the brand keeps growing, so will the stories and business ventures of its long-term franchisees like Sam and Jimmy.
Franchising M aga Z in E Usa 39
f ive k
eys
to Being a top- pe R fo R ming fR anchise s ystem
What are the keys to being a top-performing franchise system?
We have to remember that first and foremost, franchising is a business model and regardless of the product being sold – a restaurant, a fitness center, etc. – certain
principles and practices create a topperforming franchise and bring success.
1everyone Plays a team game
There is a temptation in franchising for everyone to look at themselves and everyone in the enterprise as separate and
not part of a team. There is in fact separate ownership in a franchise, but every success is tied to every franchisee being part of a team.
Yet it is easy for every franchisee to see him or herself as independent and feel, “I’m going to do my own thing if I want in my business, and so is everyone else.”
When you allow that to happen, your franchise becomes like a boat where everyone has different oars and are all rowing in different directions. Franchisors
40 Franchising M aga Z in E Usa e XPert ADvIce:
and CEo of Ingage
of Tortal Training
Evan hackel | Founder
Consulting, and CEo
to P F r A nch I ses F e A ture
many times don’t realize how important it is that everyone in the system is playing like a team and following the vision of the brand. When franchisors mistakenly think this is happening without their involvement, their actions create a culture of appeasement. They fail to provide a necessary vision and get everyone to support it.
If franchise owners start to have thoughts like, “I don’t want to participate in this franchise-wide initiative or system,” it hurts everybody and holds the entire franchise system back so it cannot move forward.
This is a cultural issue, If your system does not embrace a team culture, your entire system needs to recalibrate, build trust, develop a shared clear vision, educate everyone, and create a new culture.
2Put the customer First
It is a mistake for any franchise company to focus only on what pleases its franchisees instead of the customers. When a franchise company makes this mistake, mediocrity usually follows quickly.
When you’re only trying to please and appease franchisees, you are not going to drive much business. So be sure to consistently ask, “What does the customer want and how are we delivering it to them?” The franchise system needs to be a leader and an innovator, and that can only happen when you put the customer first. This connects back to Key Number One, Everyone Plays a Team Game. If you can get all your franchisees to engage in an ongoing process/game of inventing new ways to serve your customers, you will have taken another big step toward success.
3Make sure Franchisees Are Profitable
You cannot have a successful franchise system if the franchisees are not making money. When they aren’t, your business is not sustainable. Franchisees will be unable to grow and will be unhappy, and many will go out of business. And unprofitable franchisees exert a damaging impact on franchise sales.
So your business model must focus on the
evan hackel, entrepreneur, Author, speaker, Podcaster
As author, speaker and entrepreneur, Evan hackel has been instrumental in launching more than 20 businesses and has managed a portfolio of brands with systemwide sales of more than $5 billion. he is the creator of Ingaged leadership, is author of the book Ingaging leadership Meets the younger Generation and is a thought leader in the fields of leadership and success.
Evan is the CEo of Ingage Consulting, delta Payment Systems, and an advisor to Tortal Training. reach evan at ehackel@ingage.net, 781-820 7609 or visit www.evanhackelspeaks.com
franchisee being profitable. This comes first. And remember that when franchisees are profitable, it’s much easier for them to play as a team and to focus on the customer. If profitable, franchisees can afford to invest in their business, remodel and innovate as needed. But if they are not making money, there are no funds to invest in improvement.
4Remember that you Are a training company
“In the long run, the only sustainable source of competitive advantage is your organization’s ability to learn faster than its competition,” Peter Senge writes in his book The Fifth Discipline: The Art and Practice of the Learning Organization.
Unfortunately, many franchise systems do not focus on training. They create training, but they don’t live and breathe as a training company. They do just enough training to assure that franchisees are not unhappy. In part, this is caused by the fact that when a franchise is still small, it’s easy for management to educate the system on culture and how to be effective. But when the system gets larger, it outgrows the ability to effectively train via management interaction. The initial training franchisees received gets lost with turnover of staff.
A franchise organization needs to constantly be training. To execute a successful business model, everyone needs to know what their role is and how to execute it. And that means training people who work in franchise management, training franchisees, and training all employees. As it is the role of the franchisee to train their employees, the franchisee management needs to be trained on how to effectively train their team and must be provided the tools to do so.
Another critical aspect of your training should be to explain the rules you have in place for owning and operating one of your franchises. In other words, don’t simply make rules and require people to follow them. In your training, explain the logic behind your rules. If franchisees can only sell certain products or use your franchise’s approved systems to provide service to customers, explain why in your training. If you require franchisees to use your marketing programs, explain them and explain why.
If franchisees start to run their franchises without regard to rules, chaos will quickly undermine your franchise’s success. And great training is the way to prevent that.
5create a culture of Listening
Everybody in the system should be listening. Listening goes in all directions and it should be a core priority that you emphasize in everything you do. Franchise system management is listening to franchisees and customers. Franchisees are listening to their franchisor and consumers and are meeting their demands. They are also listening to their employees.
So stress the value and the practice of listening in your training and in your regular communications with everyone in your organization. The result will be that more people will understand more of what is taking place in your whole, holistic franchise system. And what a positive and profit-building thing that will be.
Franchising M aga Z in E Usa 41
“ The franchise system needs to be a leader and an innovator, and that can only happen when you put the customer first.”
“ less talK in-More tacos” Mexican conce P t
Forges aH e ad using tec H nology as it’s leader
Over the course of the past three years, Talkin’ Tacos has adopted various technology integrations that have been delivering industry-leading profitability and impeccable standard of service. The brand’s technology features self-serving kiosks where guests can place their orders efficiently, eliminating the cashier position and allowing faster speed-ofservice. Additionally, a Mobile App for iPhone users was recently launched which makes ordering easier with lightening fast ordering, tracking and instant notifications about deals and rewards.
South Florida-Based Fast-Casual Sensation Talkin’ Tacos Ignites Expansion with Additional Corporate and Franchise Locations in Washington, D.C., Atlanta and Florida
Talkin’ Tacos, a food truck turned fast-casual Mexican eatery based in South Florida, announced the signing of additional franchise agreements in Washington, D.C. and Atlanta, GA.
This news comes after the brand recently signed multi-unit franchise deals in Orlando, Tampa and Jacksonville with additional locations opening in New York. Four additional South Florida corporate locations are set to open in late summer, fall and early 2024 including their first Palm Beach County location in Wellington, Doral, Davie and North Miami.
Talkin’ Tacos is the brainchild of two South Florida entrepreneurs and childhood
best friends, Mohammad Farraj and Omar Al-Massalkhi. The concept started out as a food truck during the height of the COVID pandemic in 2020. As their brand and food truck’s popularity quickly grew, the neverending lines prompted their expansion into brick-and-mortar locations in Miramar and Coral Springs, FL, and the Brickell and Wynwood neighborhoods in Miami.
“Our expansion into these vibrant cities is a thrilling step forward in sharing the taco love far and wide and is a testament to the love people have for our food,” said Mohammad Farraj, co-founder of Talkin’ Tacos. “Our flexible footprints, highquality ingredients, and emphasis on speed of service without compromising taste or experience are just some of the reasons why we are so attractive to prospective franchisees.”
“Our continued growth of our corporateowned restaurants in South Florida is 100% due to the dedication and passion of our incredible team,” said Omar Al-Massalkhi, co-founder of Talkin’ Tacos. “By expanding our presence, we are not only spreading the joy of tacos but also creating opportunities for ambitious entrepreneurs to be part of our taco family.
The menu is chef-driven with core items for easy operations, and each location has the option of creating unique specials. It features an array of guest-favorite entrees such as Birria Tacos, Birria Ramen and Birria Pizza along with sides like Street Corn in a Cup. A hallmark of the menu is the beef birria which is braised each day for 12 hours before completing the cooking process. A Talkin’ Tacos meal is capped off with desserts like Cookies and Cream and Dulce de Leche Churros, Tajin & Chamoy gummies and homemade specialty beverages including lemonades, horchatas and mangonadas.
The startup costs to open a Talkin’ Tacos restaurant begins at $253,000 which includes a $45,000 franchise fee and a 6.5 percent royalty. Prospective franchisees are encouraged to visit https://franchise. talkintacos.net/ , email franchise@ talkintacos.net for additional information on franchising and FAQ’s.
42 Franchising M aga Z in E Usa sn AP shot: TA l KI n’ TACo S
to P F r A nch I ses F e A ture
Our purpose
@OurFranchise is an industry-wide campaign created to spread the word about the value of franchising and share the stories of men and women just like you, who are leading the way as franchisors, franchisees, and franchise employees. The franchise business model has been proven time and time again to work, but it’s threatened when the public and politicians don’t understand how it operates to benefit local, independent franchise establishment owners and their communities. Putting a spotlight on real leaders succeeding with the franchise model is how we’ll ensure franchising is stronger than ever before.
Follow us
Help us keep the momentum going
Since our launch in June 2016, we’ve reached 1.7 million people through outreach efforts, including events in key cities and states, where we spoke directly with business owners, employees, policymakers, and the media. Additionally, we’ve reached people across America through our website and social media channels, digital advertisements, and the promotion of We the Franchisees on Politico – but there is much more work to do. As a franchisor, franchisee, or franchise vendor, you are a leader in your community – and we need your support, now more than ever.
You benefit by joining
By joining @OurFranchise, you’ll get access to exclusive stories and resources that can help grow your franchise business, educate employees at all levels about the franchise business model, and share the economic importance of franchising with consumers. You will also have the opportunity to share your franchise success story with your peers.
Visit AtOurFranchise.org
Contact Erica Farage, Senior Director of Political Affairs and Grassroots Advocacy and Multi-Unit Franchisee Engagement International Franchise Association
efarage@franchise.org
(202) 662-0760
Share the tools and resources offered on AtOurFranchise.org/resources Our
b a x
This is just the beginning
Make sure you stay up to date with the campaign’s latest efforts through email updates and social media. Visit our website to read and share the latest stories of franchisors and franchisees making an impact in their communities. Become a franchise advocate to help ensure Americans, now and in the future, have the opportunity to start franchise businesses. Take the lead today!
@OurFranchise
Franchise
@OurFranchise
The public and policymakers need to understand franchising.
nAd EEM B AJWA
Fro M d elivery d river to PaPa Jo H ns Franc H ise Mogul
Starting as a delivery driver in 1992, Nadeem Bajwa’s journey with Papa Johns has proven to be the foundation of his remarkable career. As a Pakistani immigrant, who arrived in the United States just one year prior, Nadeem’s desire to run a business coupled with his steadfast work ethic ignited his professional path.
While Nadeem gradually progressed from driver to general manager to district manager, his appreciation for Papa Johns simple operations and business model never wavered. In fact, it was his belief in the tried-and-true model that empowered his continuous growth. Within a decade, Nadeem became the owner of 100 restaurants, but this was only the beginning.
“Papa Johns’ simple operations and business model inspired me to remain with the company and pursue my entrepreneurial ambitions,” Nadeem said. “I found the brand’s operations to be efficient and effective, making it easier for me to run my restaurants smoothly. The streamlined processes and the way the brand was built allowed me to focus on what really mattered— delivering quality pizza and exceptional customer experiences.”
Today, Nadeem is Papa Johns largest independently owned franchisee with 192 stores operating in 11 states. With a 15-store development deal in the works, Nadeem continues to identify opportunities to grow his business with the goal to own and operate 500 restaurants.
44 Franchising M aga Z in E Usa F r A nch I see I n Act I on: nadeem Bajwa | Papa Johns
to P F r A nch I ses F e A ture
“The simplicity of the brand has made scaling the business more manageable,” Nadeem said. “As I expanded my ownership, I ensured that the same core values and operational efficiencies were maintained across all of my restaurants. Papa Johns’ business model provided a strong foundation for growth, and I recognized the potential to replicate its success in multiple locations.”
Throughout his journey as an entrepreneur, Nadeem discovered that his ambitions to grow his business were not only shared but also encouraged by the Papa Johns team. His strong relationship with the team enables him to stay aligned with the brand’s vision while benefiting from internal support and guidance. As an operator who firmly believes in the model, Nadeem has successfully scaled this business to new markets, benefitting from the brand’s recognition and solid reputation within the industry. Nadeem credits his accomplishments not only to the valuable support and guidance from the Papa Johns team but also to his strategic decision to surround himself with highly intelligent individuals to foster a robust team. As his business expanded, Nadeem witnessed his team members embark on their own entrepreneurial journeys, guided by his support. By providing mentorship, guidance and encouragement, Nadeem has witnessed firsthand how his team members have blossomed into successful operators in their own right.
Former team members he trained are now the operators of multiple Papa Johns locations, with one individual operating 35 units and another overseeing 60 locations. This collaborative and nurturing approach not only creates a strong sense of loyalty and camaraderie within his team but also fosters a culture of continuous professional development.
“In order to have longevity as a brand, it is crucial to think about your team’s growth just as much as you consider your own. The team at Papa Johns taught me the importance of this mindset in their treatment of me as I developed as an owner-operator, and I have been fortunate to apply this principle within my own business by mentoring and guiding my team members to forge their own paths.”
From an outsider’s perspective, Nadeem’s journey with Papa Johns over the past three decades may seem devoid of challenges, but he has encountered obstacles and skillfully navigated through an ever-changing economic climate. He credits his resilience to the strength of the brand and his experience as an operator. As Nadeem sets his sights on adding over 300 locations to his portfolio, he plans to maintain a business-as-usual approach and stick to the fundamentals.
Nadeem is an inspiration to aspiring entrepreneurs and serves as a reminder that with the right mindset, a strong team, and a passion for delivering outstanding results, remarkable success in the restaurant industry is within reach. With his eyes firmly set on the future, Nadeem is determined to leave a lasting legacy as a true Papa Johns franchise mogul.
“With the right team and a commitment to excellence, achieving extraordinary results in restaurant operations is incredibly realistic,” Nadeem said. “I am proud of the progress my team and I have made thus far, and I eagerly anticipate sustaining our longterm success.”
Franchising M aga Z in E Usa 45
e XPert ADvIce: rick Bisio | Franchise Coach & Author
fR anchising in 2023:
to P F r A nch I ses F e A ture
Fewer r isktakers, but s till s ome e xperimentation
The risk of a recession, combined with an upcoming U.S. election year, has led many prospects to be conservative with their investments. Yet, in the middle of this more conservative atmosphere, franchisors continue to innovate.
cutting costs and casting votes
Many of the most popular franchise options this year have low investment. Franchises that don’t come with big starting expenses, like having to buy or lease a large storefront, are the ones I see attracting the most prospects. One of the reasons prospects are being so careful with their investment dollars is the uncertain direction the economy has taken.
U.S. Bank reports the gross domestic product rose substantially in 2021, with a growth rate of 5.9% by the fourth quarter of that year. However, in early 2022, the growth rate took a nosedive in the first half of the year. It pulled out of this dive, but the rate only reached about 3% by the Q3 2022. Since then, the GDP’s growth rate has slowly declined, leading economists and businesspeople to be concerned that an economic recession is coming.
On top of the risk of a recession, 2024 is going to be an election year in the U.S., which traditionally has been a time when many markets are in flux. Depending on which party is in power, policies that affect business practices, industry regulations, and other factors may change. If nothing else, folks don’t like the prospect of change. This leads some prospects to take a wait-and-see approach.
the value of staying Power
Because of the above factors, recession
resistance is another important quality for franchises in 2023. When it comes to resisting recession, the name of the game is indispensability. People and businesses will seek to cut costs when the economy is difficult, so the less they can afford to do without a certain product or service, the more secure the investment for prospects.
Some industries’ products and services are more liable to be on both personal and professional budget chopping blocks, such as home decoration, remodeling, and luxury travel. Meanwhile, Guidant Financial reports that other industries are likely to keep going strong in a recession. Regardless of the economy, consumers need to buy groceries, fix their car and repair a broken pipe in the house.
It’s important to note that even among the more indispensable industries, some businesses are more recession resistant than others. For example, automotive repair businesses that focus on body work might still see a dip in their revenue as people are more likely to put up with a few dings and scrapes to save money, but businesses that focus on engine repairs will remain in demand because customers will be more inclined to get their engines repaired than risk having to buy a new car.
hands- off Franchising
Despite the uncertainty of the economy in the second half of 2023 and into next year, some franchisors are still willing to experiment with new business practices. One recent development I’ve seen recently is testing an absentee owner model.
After the franchisee provides the initial investment, they have little oversight of the business since the franchisor handles day-to-day operations. There are also semiabsentee owner franchises, in which the
owner is involved, but in a limited capacity, making routine visits to locations and actively managing their manager. While semi-absentee and fully absentee franchises existed in the 80’s and 90’s, they were only ever popular with restaurant, hotel and salon ownerships. However, franchise infrastructural backbones has greatly improved, making it possible to set up a system to monitor business activity without having to get actively involved. This is especially appealing to businesspeople who want to hedge their bets by investing in franchise ownership while retaining their current jobs. Overall, the jury is still out on how successful this kind of business model will be. I think absentee owner franchising is still in its experimental stage, and the next 12 months will be a proof-of-concept period for it. It will probably take an additional year or two to determine just how profitable the model can be, but if it at least proves viable, then I expect more companies will be interested in trying it out.
watching the dice Land
Going forward, the second half of 2023 and into 2024 will be a period when a lot of results start to emerge. We’ll find out whether the economy goes into recession or stabilizes, whether hands-off franchising models will prove viable, who will be in the White House for the next four years and what kinds of economic policies they’ll pursue. As this period approaches, many franchisees are preparing for all outcomes, while franchisors are trying out new practices that accommodate these cautious prospects. Overall, I think the next 12 months is going to be both interesting and fun to watch.
Franchising M aga Z in E Usa 47
rick Bisio is one of the country’s most respected franchise coaches and author of the Amazon best seller, The Educated Franchise – 3rd Edition. Since becoming A Franchise Coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide helping them explore the dream of business ownership. www.afranchisecoach.com
As a franchise coach, it is important for me to keep my eye on the latest developments in franchising across various industries. Over the past year and a half, various factors that affect businesses and the economy have created a more uncertain atmosphere for business.
Th E Fr A n C h ISE B E n EFITS o F sM all Business collaB oration
Peter Roberts is a co-founder of ManageMowed, a leading commercial landscape management franchise with locations in Washington, California, Oregon, Colorado, Texas, Oklahoma, North Carolina and Missouri.
The summer months provide a hotbed of opportunity as a majority of homeowners are looking to enhance and remodel their properties. As a newer business to the area or industry, it can be challenging to overcome the already-established relationships with other companies that residents have been cultivating for years. What many service-brand business owners might not realize is that there is an untapped potential for consistent and reliable business already in their markets, which can be found with other local businesses. Smalls businesses make up almost 45% of activity in the economy and employ more than 1.5 million jobs annually. However, there are several advantages of working with other smalls businesses in the community outside of growing a franchise location’s sales, including engaging with community leaders, enhancing brand awareness and increasing philanthropic collaboration.
Benefits of small Business collaboration
A huge benefit of collaboration with local businesses, is that it gives the opportunity for a service brand owner to expand their reach and earn new clients. When franchise owners go out into the community to conduct their services for small businesses in the area, they can tap into new opportunities to grow their business. Commercial business owners may have the opportunity to examine the outcome of a brand’s services for a neighboring business or house and become encouraged to reach out and try those services for themselves.
48 Franchising M aga Z in E Usa h Ave your s Ay: Peter roberts | Co-founder | ManageMowed
In service industries alike, there’s no shortage of competition to acquire new business, especially when it comes to establishing a regular clientele.
to P F r A nch I ses F e A ture
Another fantastic benefit of working with small businesses, is that it allows brand strengthening in your community, without having to spend money on any paid advertising. Word of mouth is a powerful tool, so when franchise owners complete an exemplary job for one business owner, those clients likely to tell other colleagues or friends about the brand’s services. The more people talk about a brand’s services; the more likely new people are going to want to utilize that brand for those services to remedy their needs. It ultimately creates a healthy business environment, especially since there’s always a need for landscaping with small businesses.
In addition to the benefits of expanding and developing our clientele with new opportunities through small businesses, you might be able to benefit from the relationships you develop with those small businesses. They also might be
willing to collaborate with your brand on other efforts, like community outreach and philanthropy. Having a strong relationship with your community through collaboration, can allow you to make a bigger impact with your outreach efforts, which develops this cyclical trend of doing good and giving back to the community.
Leveraging small Businesses as a Franchisor
Collaborating with other small businesses in local communities is not only beneficial to franchise owners, but franchisors as well. For service brands, there are a myriad of ways that franchise owners can work with subcontractors in their markets to reduce costs, increase workforce flexibility and create better scalability within their businesses.
ManageMowed’s business model has evolved over the past decade to specialize
in partnering with other local, owneroperator landscape companies. This allows our franchise owners to reduce their overhead start-up costs as they don’t need to hire a full staff or source equipment before launching in their territories. Vendor partners also often possess specialized skillsets, which enhances the potential revenue opportunities that our franchise owners can offer to their clients.
For franchisors looking to implement subcontracting into their business models, it is important to provide your franchise network with the proper training programs on how to find reliable vendors and maintain effective communication with those partners. Our team offers franchisees a comprehensive training program, which includes corporate and in-field training, as well as up to three days of training in your territory, and is supplemented by our extensive virtual library.
the Final outcome
Working with other small businesses has become the lifeblood of ManageMowed’s business and brand culture and has added value to the brand in a wide variety of ways. By shifting the focus from residential jobs to local commercial jobs, we’ve managed to create a business model that has a deeper focus on community by involving every aspect of the community. By making commercial jobs a priority, in turn we’ve also made community relations a priority ultimately strengthening our relationships with the markets that we serve.
Partnering with other small business allows service brands like ManageMowed to become more integral parts of their communities and has the potential to result in in increased growth year after year. Not every business owner or franchisor realizes the benefits that working with other small businesses can provide, and there are a variety of different opportunities in every market. Whether it’s helping with lawn touch ups for a local gas station owner, a complete landscape makeover for a local chamber of commerce or even sponsoring community events, the benefits of being more involved in one’s local community are nearly endless.
Franchising M aga Z in E Usa 49
t he pR og R ession of the pe R fo R ming a R ts secto R
For young people, the world can be daunting. In a world where we are all trying to rebuild and return to “normal”, parents are seeking ways to support their children’s academic, social and emotional development through methods outside of the classroom.
As demand increases for quality services that provide young people with communitybased, safe and inclusive avenues to develop, franchises focusing on children’s development are more vital than ever. Such sentiments make now the best time to invest in a performing arts franchise.
By investing in a performing arts franchise, you join a global network committed to one cause and build a business with the
potential for growth while simultaneously providing children in your community a place to be themselves and learn lifelong skills.
Here, Andy Knights, CEO of Stagecoach Performing Arts, highlights the positive outcomes of investing in this resilient sector for young people and professionals alike.
community
The performing arts create inclusive communities that empower children to embrace their true selves. These programmes provide young people with opportunities to explore their creativity, develop skills and build confidence. Through performing arts education, young individuals gain a sense of belonging and form meaningful relationships with peers. The arts become a common language through which they can express themselves and connect with others.
In Canada, Stagecoach Halifax’s students and teachers are inspired by the power and strength of the sense of community that it creates. “We are all facing challenges every day and Stagecoach Halifax’s students know that encouragement from their teachers, friends and loved ones is a
50 Franchising M aga Z in E Usa F r A nch I sor I n D e P th: Stagecoach Performing Arts
to P F r A nch I ses F e A ture
Andy Knights
ce O of s tagecoach p erforming a rts
powerful motivation to keep them going, especially through difficult times. Like the lead character in their performance, when they find their courage and embrace what they are destined to do, they will fulfil their greatest potential!” said Principal Kristi Wenaus.
Contributing to the cultural fabric and identity of a community, the performing arts foster a sense of togetherness.
Providing young people an outlet to showcase their talents and celebrate their achievements, the arts create a sense of place and strengthen community bonds. The relationship between performing arts schools and the community is significant for both the students and the overall success of the school.
Performing arts schools provide a structured environment where young individuals can receive specialised training in artistic disciplines from theatre to music and dance. Our schools offer a comprehensive curriculum and expert instruction, enabling students to develop their artistic skills to their full potential. By nurturing talent, performing arts schools contribute to the growth and vibrancy of the local arts community. Through their unique offering, they cultivate creativity, critical thinking, discipline, teamwork, and self-expression in students. These skills go beyond the arts and are transferable to various aspects of life, contributing to the personal and educational development of young individuals.
the evolution of the arts
The performing arts sector is evolving to adapt to technological advancements and societal shifts, while also striving for inclusivity, social impact, and sustainability. At Stagecoach Performing Arts, our schools are actively working towards creating a more inclusive and diverse environment. They are promoting representation and equitable opportunities for students and teachers from different cultural backgrounds, ethnicities, genders and aptitudes. Our practices and processes foster inclusivity and celebrate diverse perspectives, as we seek to provide a more holistic and contemporary education to our students. Ultimately, we aim to prepare students for a dynamic and evolving performing arts landscape and empower them with the skills and knowledge to succeed in their chosen endeavours.
Actively engaging with their local communities, our schools seek to bring the arts to underserved populations and foster community involvement. Schools are partnering with local organisations, schools and community centres to expand access to performing arts education.
Amanda Mariani, Principal at Stagecoach Westmount-NDG, emphasises the importance of the performing arts in sparking connections and building trusted relationships to help support those in her local community. “I have lived in Montreal all my life, and being able to learn about the people who make my home such an inspiring place is such a privilege,” said Amanda. “Stagecoach Westmount-NDG
is an important part of the community, bringing opportunities to experience performing arts. Giving back to the community is so important to me.”
Amanda’s sentiment regarding the importance of arts and culture is widely shared among the Canadian community, with 94% of Canadians believing that arts and culture greatly enhance the quality of life in their communities1. This overwhelming support underpins the significant role that arts and culture play in shaping vibrant and thriving communities across the country. Data also shows that Canadians who rate the arts, culture and leisure offerings in their community as ‘excellent’ are nearly three times more likely to report a ‘very strong’ sense of belonging to their city or town 2. This statistic highlights the powerful connection between access to artistic and cultural experiences and the sense of belonging and pride that individuals feel for their local community. It emphasises the transformative impact the arts can have on people’s wellbeing and their relationship with their surroundings.
By investing in the performing arts sector, you join a global network committed to supporting children’s development and building businesses with growth potential. At Stagecoach Performing Arts, we emphasise the positive outcomes that investing in this resilient sector brings, both for young people and professionals. The performing arts sector continues to thrive and provide invaluable opportunities for children to explore their passions, develop skills, and flourish within their communities.
1 Arts and Heritage Access and Availability Survey
2 Community Foundations of Canada and CAPACOA, Vital Signs: Arts and Belonging
Andy Knights is CEO of global children’s performing arts franchise Stagecoach Performing Arts – a role he has held since 2014. He has over 20 years’ experience working in the franchising industry. For more information about franchise opportunities with Stagecoach, visit www.stagecoachfranchise.com
Franchising M aga Z in E Usa 51
Fielding c alls w H ile w or K ing in t He Field
Franchise businesses ignore the importance of good call handling at their peril according to a new “mystery caller” survey that looked at call handling customer service skills.
Despite most delivering overall great customer service, the survey of 60 companies showed room for improvement among franchise businesses, including a mix in performance in terms of the warmth of the greeting, helpfulness, and call handling quality throughout the call. Nearly half of the businesses called defaulted to voicemail, with ten even letting the phone ring until it was disconnected. Over half of the companies received a score of “poor” for their greeting, overall helpfulness, and warmth, with only five of those “shopped” earning “outstanding” marks across the board. When it came to the speed of calls being answered, the bestperforming company answered in less than one ring or five seconds and the worst performing answered in an average of seven rings or 39.89 seconds.
In the case of one franchise owner, Brian Mullins from Critter Control of Akron, having the phones covered for his small crew of five has helped his team utilize their time most effectively in the field. Critter Control Certified Wildlife Specialists provide service to residential, commercial, and municipal customers with permanent solutions to animal pest control problems.
“Letting someone else answer our calls has allowed us to utilize our time most effectively in the field,” said Mullins.
“This has allowed us to not only prioritize customer service, but also our new business development, which has significantly aided our growth and expansion. Having a
dedicated receptionist means we can always respond to any hiccups and resolve them quickly.”
Earlier Moneypenny research suggested consumers call when something is really important: 44% do if it was an urgent matter and a 33% if it is a complicated matter. Of those surveyed, 82% said a great call experience is a differentiator for a business. Around a third said a bad experience would have them take their business elsewhere, complain, and spread the word to friends and family – not the words a franchise brand tends to want shared. This can be especially difficult for franchisees who are often leanly staffed small businesses.
Adding members to your team to scale your franchise business can be an expensive prospect. But, when you are too busy to respond to new calls, the first impression you are giving may not be the one your business deserves. While no one expects a customer service representative to be available at midnight, a lot of people do their searching in the evenings, and if someone is there to take a person’s call at
52 Franchising M aga Z in E Usa h Ave your s Ay: Stephanie Vaughan-Jones | head of Business development | Moneypenny uSA
to P F r A nch I ses F e A ture
“ Letting someone else answer our calls has allowed us to utilize our time most effectively in the field.”- Brian Mullins
Brian Mullins from Critter Control of Akron
7 p.m., there is a better chance they will become a customer.
Some eaSy tipS include:
Put yourselves in the shoes of the client
Think about what causes irritation to you as a customer and what would impress you. Review your own internal procedures and client touch points to see how you fare. If possible, have your own franchise mystery shopped or use client feedback so you know where to improve.
Make call handling a strategic consideration
All too often, answering the phone is
think digital
Making your website more informative and interactive can add tremendous value – not just to the client experience but also to your internal processes. The addition of quote calculators, portals to upload information for new instructions, and Live Chat to answer FAQs and queries in real time, all help to handle queries without the need for a call. A Live Chat operator can manage three chats in the time it would take to manage one call.
take a look at your “calls to Action
Ensure that the channels you are directing people to, whether a phone number or a managed chat, offer a good experience. Are they available 24/7 and can customers and prospects access the information they need easily?
We were surprised how many businesses did not place as much focus on their customer service when answering the phone. Clients will form a lasting impression of your franchise from a phone call, so a long delay in a call being answered or a cold phone experience could cause irreparable damage to both your business and your broader brand. The difference in answering after one ring versus five or more may sound small, but when someone picks up the phone, they are looking for answers, not frustration.
treated as something that just happens, rather than a business-critical activity that can determine first impressions, your reputation, and new business. Put the right resource in place, whether that’s in house or with the help of an outsourced provider, to minimize disruption for your team and improve call handling efficiency.
Manage expectations
Part of ensuring positive impressions is being clear, honest and up front about what clients can expect. Establish whether call backs are really necessary and, if so, when they will be made. If Live Chat cannot provide an immediate answer, when will someone get in touch and how?
ABout stephanie vaughan-Jones
Stephanie is Head of Business Development for Moneypenny USA, a global leader in providing phone answering, receptionist teams, Live Chat and customer contact solutions. Based in Atlanta, she is a key member of Moneypenny’s award-winning culture, which includes over 1250 employees across the US and UK. Moneypenny handles over 20 million calls and chats for 21,000 businesses with awesome people superpowered by leadingedge tech solutions to deliver seamless customer engagement outcomes. for more information, visit www.moneypenny.com/us.
Franchising M aga Z in E Usa 53
Franc Hise s trategy
When I started working in my family’s oil change franchise, I was trained on how to execute the operational standards required to succeed. I only learned about the term strategy when I joined the corporate world working for franchisors.
Essentially, like playing a sport, a strategy is what you will do to win. When you’re running a business, you’re focused on operational execution and may not have the time or bandwidth for implementing a strategy. However, there’s a reason successful companies have a strategy (how to win) and a supporting plan (playbook), often times referred to as a strategic plan.
Regardless of the size of your single unit or multi-unit franchise, the benefits of having a strategy extend from your frontline staff through to management and shareholders. A strategy will help align
everyone in your organization on what you will do to succeed, and the supporting plan will share how you will do it.
Here are key reasons why you want to create a strategy for your franchise:
1clarifies Business
goals:
The outcome of a great strategy is that anyone who looks at it will know your goals and how you will achieve them. Let’s say your big goal is to increase your revenue by 30%. Your frontline staff, managers and shareholders know that you must have a robust plan to achieve this goal. Now when you think about the plan (tactics) needed to grow revenue, you and your team will be able to drill down on what will be relevant to your business. In this case, you may say we have to make sure our front line completes all product knowledge training, are being assessed on key sales factors like average transaction revenue and upselling, and you’re meeting as a team weekly to review financial results. This business goal now becomes the drive for your team’s daily actions.
2Provides a Basis for decision-Making
You rely on having great people serving your customers, so when your frontline staff say they want more flexibility in their hours, you have to put this through the filter of “How will this affect my 30% revenue goal?” The solution you come up with might be to allow staff to trade shifts between themselves and to implement a 4-week notice of vacations during the peak revenue months of July-August. Referring back to the strategy when key things happen in the business allows you to always think about how you will achieve your goal by identifying the resources you need, the risks you face, and the existing opportunities. Armed with this information, you will begin thinking strategically!
3Increases employee engagement
As an employee, you show up to work, complete what is asked of you and then rinse and repeat. The key to employee
54 Franchising M aga Z in E Usa
e XP ert AD v I ce: ron r amesh | CEo | new Path Ventures Co.
Since 2004, ron ramesh has worked within his family franchise, a multi-unit franchisee, emerging, mature franchisors and now is CEo of ew Path Ventures Co. where his company leverages technology such as AI to develop franchise strategy and industry reports.
engagement is to help your employees connect what they’re doing to a meaningful result. If your staff member knows the $500, they upsold today exceeds the daily goal, they know they have done more than punch in and out of work. When everyone in your business understands the overall goals and objectives, which can be broken down into their roles, they can work together more effectively to achieve them. Communicating your strategic plan to your team ensures that everyone is working toward the same objectives and understands their role in achieving them.
4helps secure Financing
A business plan supported with financials is a critical element to securing financing. Adding a strategic plan to this mix lets the lender/investor see that you’re thinking short, mid, and long-term. The mid to long-term thinking paints a picture of a business that is thinking about winning and how it will get there. When this thinking is supported with strong tactics of achieving 30% revenue growth over the next 2 years, a lender/investor can now understand how this will be achieved.
5enables Flexibility
A strategic plan is not set in stone. It can and should be updated periodically to reflect changes in your business environment. By regularly reviewing and updating your plan, you can stay nimble and respond to changes in the market or unexpected challenges. Looking at the economic environment with rising interest rates and increasing inflation, you may have to slow your investment in new computer systems but continue to invest in your staff knowledge training as this is a key success factor in achieving your goal.
Creating a strategy is not a task done alone but requires engaging with your entire team from the front line, management, and shareholders.
the following steps are how a strategy comes together:
1) i nformation gatH ering –Meet with all the different staff/teams and brainstorm what is working well and what needs improvement. This can be funnelled into a PEST and SWOT analysis.
*Political, economic, social, technological
| Strengths, weaknesses, opportunities, threats
2) clear direction – What is the vision and mission? Does it still make sense?
3) create goalS – Find common themes from the information gathering that need improvement or adoption. When these common themes are found, can you turn them into goals?
4) SH are goalS – share your big goals with your team and ask for feedback before building them into tactics. This is your chance to make further changes if required.
5) tacticS – turn your goals into manageable objectives that filter down to each individual to let them know how their contribution fits into the big goals.
Just remember, a strategy is not done in isolation; you will involve all team members, and when it comes time to execute, each team member’s efforts will align with it. You’re running a team no different than any of your favourite pro teams, and a strategy helps everyone know how you will win.
Franchising M aga Z in E Usa 55
Source: https://newpathventuresco.com/resources-%26downloads/f/franchise-planning---writing-your-strategy-part-v
Graph
simple example of Inputs and outputs of a strategic Plan
Balancing staK e H older concerns and Business o
BJ ectives:
7 steps to implement ai
As the business landscape evolves, franchise owners recognize the immense potential of integrating artificial intelligence (AI) technology into their operations. However, successful AI implementation requires a strategic approach that considers stakeholder concerns and aligns with overall business objectives.
This article explores the essential steps necessary to reduce stakeholder anxiousness and successfully integrate value-adding AI technology into their businesses.
Whether you are a franchisee looking to enhance efficiency, improve customer experience, or reduce costs, these steps will guide you toward success.
s te P 1: define clear Business objectives
Clear business objectives and your vision are the bedrock for successful AI integration. By identifying the goals of your franchise and aligning them with the potential of AI, you set the stage for a successful integration process.
Take the time to strategically plan for areas or functions where AI technology can contribute to these objectives. By aligning your AI implementation with your strategic vision, you ensure that every effort serves a purpose and adds value to your franchise.
s te P 2: conduct a comprehensive needs Assessment
Conducting a comprehensive needs assessment is the next crucial step. The evaluation involves considering the current state of your franchise and identifying bottlenecks or areas for improvement. By
understanding your franchise’s specific challenges, you can determine how AI technology can address them and enhance operational efficiency.
Engaging stakeholders, including employees, customers, and partners, is equally important to gather their valuable insights and input. By involving all in the process, you demonstrate a commitment to their needs, lower their anxiety, and increase the likelihood of successful AI integration.
s te P 3: Research and select Appropriate AI solutions
Researching and selecting the right AI solutions for your franchise is vital. Take the time to explore various options and consider factors such as scalability, compatibility with existing systems, and ease of integration. Seek recommendations from industry experts or consult with AI solution providers who can offer valuable
56 Franchising M aga Z in E Usa e XPert ADvIce: lucas Frey | CEo | Bella Vista Executive Advisors
guidance. By making informed decisions, you can choose AI solutions that align with your franchise’s specific needs and maximize their potential for success.
s te P 4: communicate and Involve stakeholders
Effective communication and stakeholder involvement is critical to successful AI integration. Develop a clear communication plan that keeps all stakeholders informed and engaged throughout the process. Address their concerns and ensure that their input is taken into consideration. By effectively communicating the potential benefits of AI technology, you can gain support and buy-in from stakeholders, which is crucial for a smooth implementation.
a nSwer tH e que Stion: How does this new technology add value to your stakeholders?
uke Frey improves franchise owners’ businesses where corporate support alone fails. he brings 26+ years of varied professional experiences including 20 years as a franchise owner of ImageFIrST Cincinnati, 6 years as an industrial engineer for a Fortune 250 company and 19 years as a volunteer firefighter. All of these experiences, in addition to his drive to learn, have brought him to be a positive driving force for other franchise owners’ successes. to learn more about luke and how Bella vista executive Advisors can help, please click here www.bellavistaexecutiveadvisors.com
s te P 5: develop a customized Implementation Plan
A customized implementation plan is essential to guide your franchise through AI integration. Create a detailed roadmap that outlines specific steps, required resources, and timelines for implementation. Assign responsibilities to relevant team members and establish key performance indicators (KPIs) to track progress.
It is often advisable to adopt a phased approach, starting with pilot projects to mitigate risks and gather feedback for improvement. This approach allows flexibility and adaptability as you navigate the complexities of AI integration and minimizes unintended consequences.
s te P 6: Invest in training and skill development
Investing in training and skill development is crucial for successfully incorporating AI technology into your franchise. Provide comprehensive training programs to equip employees with the necessary knowledge and skills to work effectively with AI systems.
Foster a learning culture that encourages continuous improvement and adaptation to new technologies. By investing in your team’s capabilities, you empower them to embrace AI as a tool that enhances their skills and productivity.
s te P 7: Monitor, evaluate, and Adapt
Continuous monitoring, evaluation, and adaptation are vital to ensuring the longterm success of your AI integration efforts. Regularly monitor the performance of
time
options
AI systems and assess their impact on your franchise operations. Evaluate the achievement of desired outcomes and make necessary adjustments to optimize performance.
Stay informed about advancements in AI technology and explore opportunities for further optimization. By staying proactive and adaptable, you can ensure your franchise remains at the forefront of AI integration.
Following these seven steps, you can successfully navigate the competing challenges of AI integration and address stakeholder concerns. Remember to define clear business objectives, conduct a comprehensive needs assessment, research and select appropriate AI solutions, communicate and involve stakeholders, develop a customized implementation plan, invest in training and skill development, and continuously monitor, evaluate, and adapt. With careful planning and consideration, AI technology can become a powerful tool that propels your franchise toward greater efficiency, productivity, and success.
Send me a message today, Luke@bellavistaexecutiveadvisors.com, to schedule a call and take the first step toward your vision for your franchise.
Franchising M aga Z in E Usa 57
“ Researching and selecting the right AI solutions for your franchise is vital. Take the
to explore various
and consider factors such as scalability, compatibility with existing systems, and ease of integration.”
—
Paving t H e way For e quitaBle Franc H ise oPP ortunities
After being introduced to the franchise industry in college, Joe Johnson quickly developed a deep appreciation for the business model. He recognized the potential in the industry and dedicated nearly a decade to gaining the necessary expertise and operations skills to prepare himself for the journey ahead.
In 2016, Joe decided to join the Papa Johns franchise family, attracted by the brand’s growth potential and the chance to achieve
significant scalability. Within the last seven years, he has grown to own and operate over 19 restaurants. Joe’s unwavering passion fuels his current trajectory of growth, and he sets his sights on doubling his store count within the next five years.
“When I came across the Papa Johns franchise opportunity, everything seemed to click into place,” Joe said. “The brand checked all the boxes for me with its growth potential and the chance to achieve significant scalability. Since then, I’ve poured my heart and soul into my restaurants and continue to have ambitious growth plans.”
During this seven-year period, Joe has embraced the opportunity to lead teams and operate his successful businesses throughout the Northeast, from New Jersey to Maine. Joe quickly discovered that the constant pursuit of improvement was a core principle of the brand, as is evident by the ‘Better Ingredients, Better Pizza’ tagline. When Joe expressed his commitment to growth, he received support and numerous development opportunities.
As Joe has developed his business and ownership, he also became a passionate ambassador for the brand, advocating for increased opportunities and pathways for diverse owners in the franchising industry. Joe has initiated and led conversations on how Papa Johns can utilize its platform to drive actions that promote equitable franchise opportunities.
“It’s not just about our own success, but about creating a level playing field for minority individuals to enter prime
58 Franchising M aga Z in E Usa
F r A nch I see I n Act I on: Joe Johnson | Papa Johns
ohnson
j oe j
franchise opportunities and diversify the top brands in the industry,” Joe said. “Through various initiatives, we aim to create pathways, break down barriers and ensure that talented entrepreneurs from all backgrounds have the chance to thrive.”
Through Athlete Franchise Partners, Joe created an avenue for athletes with the necessary capital to partner with experienced operators looking to own franchises. He is also involved with Our Slice, an initiative that focuses on training and advancing minority entrepreneurs to bridge the financial gap and eliminate barriers to entry in the franchising space.
Joe’s dedication to establishing equitable opportunities is exemplified by his work on the board of the Papa Johns Foundation. As a member of the board, Joe seeks to maximize the brand’s impact in supporting communities. This role aligns well with his desire to make a difference and have a positive impact. In recent years, the
foundation has made significant strides and demonstrated an immense capacity for change.
“Philanthropy has always been incredibly important to me, so being able to align my dedication to equitable opportunities with Papa Johns as an inaugural member of the board has truly been rewarding,” Joe said. “For me, it’s not just about financial success; it’s about making a positive impact on the lives of others. I look forward to continuing to create a lasting legacy of progressive change in many avenues across the brand.”
The journey Joe has embarked on with Papa Johns serves as an inspiration to aspiring entrepreneurs, showcasing the remarkable success that can be achieved with persistence and brand support. With his dedication to quality and unwavering enthusiasm for fostering opportunities, Joe eagerly looks forward to the ongoing triumph of his team and the immense
AB out Joe Johnson:
Joe Johnson is an extraordinary business leader and the owner of Disrupt Foods. His exceptional achievements have earned him the prestigious title of Franchisee of the Year by the International Franchise Association (IFA) in 2023. Recognized for his outstanding contribution as a franchise establishment owner-operator, Joe has left an indelible mark on the Papa Johns brand.
With a background in technology and 13 years of retail experience, Joe has brought innovation and a fresh perspective to the Papa Johns experience. Joe Johnson’s remarkable achievements, strategic thinking and dedication to community empowerment have solidified his position as a respected leader in the business world. His ongoing efforts to leverage technology, promote diversity, and make a positive social impact exemplify his commitment to excellence and the values that Papa Johns stands for.
Franchising M aga Z in E Usa 59
Risky Business: How Facilities Manage M ent Franc H ises c an HelP Businesses
avoid t H e Pit Falls o F Bringing w or K i n-House
facility maintenance processes to address building preparation for regulatory audits. These limitations mean in-house cleaners may miss important tasks or procedures that place an operation at risk of fines and shutdowns.
Conversely, franchise businesses that provide facility maintenance services have access to a wealth of resources, including robust training programs, that help establish comprehensive protocols for each of a customer’s operating sites, even if every building has unique demands and nuances. A dedicated commercial cleaning franchise business specializes in understanding regulatory guidelines and keeps tabs on changes in a way that many in-house crews are not equipped to do.
In a volatile economy, businesses look for ways to curb costs. Many, still in postpandemic recovery mode, are under extreme pressure as they manage against the threat of a recession and ongoing economic uncertainty.
Eliminating contracted partners and transferring responsibilities in-house is a common solution that may seem like a smart business solution on the surface. What many managers discover the hard way is that cutting costs can become a costly mistake.
This is particularly true in the case of services like facilities management. For many companies, facility services represent a relatively small 2-5% budget line-item cost. This deceptively small expense is one that many companies believe can be trimmed by bringing the responsibilities in house.
The challenge is that behind this seemingly prudent budget-cutting decision lurks a multi-million-dollar operational risk that financial, operational and facility leaders may not recognize.
At its core, facilities management protects the company, its people and its assets. A facilities management and commercial cleaning partner can play an essential role in mitigating a client’s operational risk. In fact, aligning with a reputable partner, such as a cleaning franchise provider, can introduce a level of trained skill, attention to detail and commitment to service that it’s extremely difficult to achieve in-house.
To better understand how a franchise partner may be a better solution than insourcing, it’s important to first consider the inherent challenges of bringing commercial cleaning duties in-house.
Regulatory Risk
Failed regulatory audits can lead to millions of dollars in fines. In-house teams often lack the expertise to develop
Productivity Limitations
For any business, employee illnesses, injuries and attrition impact operational productivity. Facilities management, which can be easily overlooked, especially if management perceives the role as strictly janitorial, is truly an essential function. Even a day or two of absence can create significant gaps that pose a threat to a business’ overall productivity.
Backfilling for an employee’s temporary illness or injury-related leave is more complicated than many other positions. Skills are less transferable and specific knowledge is necessary to execute many facilities management tasks, even seemingly simple duties like mixing cleaning chemicals properly to avoid damaging surfaces or creating toxic fumes. Multiple layers of loss are at stake, including human health and safety, costly destruction of property and down time if workspaces are rendered unusable.
With a janitorial franchise partner in place, that contractual agreement means facility
60 Franchising M aga Z in E Usa sa
h Ave your s Ay: Andrew Johnson | Senior Vice President of Marketing | openWorks
management duties will be completed regardless of illness or other circumstances. It’s a franchise owner’s responsibility to have contingencies in place for a wide range of scenarios so each customer’s business continues without interruption. That level of reliability and continuity is virtually impossible to achieve with an inhouse team.
Personnel challenges
Also worth noting, facilities management positions tend to have a high rate of turnover. Janitorial service, in particular, is a complex job to manage as there is rarely recognition for a job well done. On the other hand, everyone notices even a minor oversight. Frequent hiring, ongoing training, workers comp claims and damage to facilities all threaten a company’s productivity, and ultimately, its bottom line. This is precisely what one large food and entertainment chain found after trying to manage facility services in-house. They did not anticipate the level of employee oversight and management needed to
hire, fire, train, motivate and oversee the employee base. After hiring workers, the company quickly realized that the operation needed supervisors, process manuals and formal training. Not long after initiating the experiment, the business reverted to its previous outsourcing model and reengaged an OpenWorks franchise partner to effectively oversee its facility service needs.
As this company discovered, personnel matters represent an area where engaging a franchise partner can be especially beneficial. Unlike in-house facilities maintenance workers, who tend to have limited career growth opportunities or aspirations, facility managers are also franchise owners. They are highly motivated entrepreneurs who recognize their customers’ success and satisfaction is essential to attaining their own business goals.
Franchising: A Practical solution
In today’s business world, it is more important than ever for businesses to focus attention and resources on core operations. Outsourcing facility services simply makes sense, and that means opportunity for existing and aspiring franchise business owners.
Facility management is a massive job all
on its own. Partnering with a commercial cleaning franchise company allows ambitious, enterprising individuals with an interest in facilities management and cleaning services to become part of a solution for businesses in their community. A partner like OpenWorks offers added benefits, like ongoing training, comprehensive business support, and access to valuable data that provides a unified view of your customer operations. OpenWorks, a national leader in facilities management, serves customers from coast to coast who have discovered the advantages of enlisting the support of a knowledgeable expert, rather than attempting to cut costs (and corners) by bringing the job in-house.
Facility management is far from a cost to be eliminated in a time of economic uncertainty. Quite the opposite, in fact. It’s a profit protector that should not be overlooked.
AB out Andrew
Andrew Johnson is Senior Vice President of Marketing at OpenWorks, where he is responsible for customer and franchise growth activities and communications. His 25-plus years of experience spans industries including facilities management, transportation, distribution, SAAS and enterprise software.
Franchising M aga Z in E Usa 61
Johnson:
”
“ Outsourcing facility services simply makes sense, and that means opportunity for existing and aspiring franchise business owners.
h ow do we select g R eat locations?
Site selection is like a tug of war. On one side are all the good things you are looking for, and on the other side is the rent (or purchase price) being asked. We can all secure fantastic sites if we pay outrageous prices, and we can all get poor (and cheap) sites, if we are prepared to compromise on the basic necessities we know we should have.
Retail site selection is all about being able to achieve the positives, without paying an exorbitant cost.
How often does a business fail, not because the product is poor, but because the retail location planning has put the site in the wrong area? It is very difficult (almost
impossible) to make every retail site perfect, but you can use some processes to improve the probability of success for your new stores.
Areas to consider
By defining the areas you need to look at, you create a more structured approach to evaluating a location. What we are retailing will have a huge influence on our retail decisions, including that type of retail venue(s) are we seeking. If we are an oil company, then we are looking for free standing locations with great traffic and access. If we want to go into a shopping mall then we need to look at the Mall’s statistics, and if we want an Inline shop, then the power of the strip, and the passing pedestrian traffic is very relevant. Each type of site is different and has its pros and cons accordingly.
e XPert ADvIce: Peter Buckingham | Managing directo r| Spectrum Analysis Australia Pty ltd
demographics
The USA has very good demographic information to allow you to make some assessment of the area you are trying to open a store in. Using the United States Census Bureau, and the 2020 Census, you can find relevant information on any area by simply googling “census.data” and following the links.
Ideally we like to have information so we can match up the potential customers with the resident population. What I mean by this is if we know who the potential customers are, we can look to where they live, and look to that area for locating our business.
Using United States Census data, we can see or make an assessment on things like population, age profile, average household income and ethnicity to name a few. It also provides a simple map of the area, and you can see what access to an area looks like. For example, if you are opening in a beach side area, just remember fish do NOT buy your products, and if the ocean is on one side of you, then you only have 50% of customers to work with, compared to an area with no barriers or population in a 360 degree radius.
For example if I was going to open a Mercedes dealership, I would be seeking a high income area. If I was selling very cheap children’s clothes, I would be looking for a lower socio economic area, with a high % of children, or a lower than normal average age cohort.
Physical location
Once we have at least drawn conclusions on what areas best suit what we are retailing, how do we look for the retail site? Try and think in terms of whether your product is Impulse or Destination, and that will give you some ideas on where to look.
Impulse products are those things people buy at a whim, and need them on a regular basis. Think cigarettes, milk and other items from a convenience store.
Destination is much larger purchases, where you will make a conscious decision to seek out that product, and go to the destination where it is at. Think in terms of
a new car, a high priced restaurant for your birthday or anniversary, or renovating your house.
The more you are at the impulse end of the line, the more you need to pay high rent for a top site with lots of passing traffic. The more you are destination, the more you can be off the main course / road, and pay less for a quality place that suits your needs. It is pointless paying for more space than you need. Be focused on the footprint of the store you want to have and be clear on this when talking to an agent. It is setting up for disaster if you need 1,000 square feet and you are being asked to pay for 2,000
or 3,000 square feet
What we are normally weighing up (along with the rent) are the following factors:
• Traffic – road, pedestrian and bicycles
• Visibility
• Access and parking
• Space (square feet)
• Suitability of the physical facility
• Who are our neighbours
Building a process to make better decisions
If we are only opening one store (as per a normal franchisee), then this decision is normally a one off, or not something being done on a regular basis. If we are a Franchisor or a large company with many
retail outlets, then this is a regular event, and we should have a process to make the best possible decisions. Whilst a Franchisor cannot tell you what their internal modelling is telling them, you hope they do have a process to understand the potential for your new store to succeed.
If you are only opening 1 or 2 stores, you have to make the best call you can. If we are a multi store franchisee, and opening your 20th or 30th store, you should have learnt off the previous stores, and have some idea which stores work best for you, and which stores perform poorly (from a demographic view).
I am always amazed at how much effort goes into screwing down the rental, or cutting the staffing levels to a bare minimal, because a store is not performing well, but look at how little effort has gone into the sales prediction modelling and logic to predict what the store should or could be selling!
My recommendation for Franchisees and Franchisors is to think of site selection and retail site analytics and the development of a proper process as an investment in your business. Stop thinking of this as an expense, because these are often the most important investment decisions in your business for your long term survival.
Franchising M aga Z in E Usa 63
Peter Buckingham is the Managing director of Spectrum Analysis Australia Pty ltd, a Geodemographic and statistical consultancy. Peter is both a Certified Management Consultant (CMC) and a Certified Franchise Executive (CFE). Peter’s company works in Australia and now in the uSA. o contact Peter email peterb@spectrumanalysis.com.au or visit www.spectrumanalysis.com.au
iMP ulse P urc H ases Hig H er rent d estination P urc H ases lower rent
64 Franchising M aga Z in E Usa S UBSCRIBE TO Franchising USA’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week! WA nt to S tAy on top o F the l Ate S t ne WS A nd W h At S h A ppening At the F ore F ront o F F r A nchi S ing? To subscribe visit: www.franchisingmagazineusa.com
Franchising M aga Z in E Usa 65 Leadership. Teamwork. Executing SOPs. Connecting veterans with education, resources and opportunities at vetfran.org
Fro M Battle to Beans & Brews: wH y v eterans e xcel as Franc H ise o wners
in military service can make civilian living feel unstructured and chaotic. Many veterans are faced with making choices about what direction their lives will take, knowing whatever they decide will have an impact on them and their families.
But veterans possess unique qualities that make them well-suited for leadership such as decision making, executing a mission and working well with a team. These are all attributes that make them perfect for franchise ownership. Franchisors like Beans & Brews Coffeehouse offer incentives to veterans, recognizing the value they bring to the brand.
Why is franchising attractive to veterans? Franchising provides veterans with a structured and proven business model, aligning with their familiarity with
the support of an established brand. This combination offers veterans a sense of purpose, camaraderie, and an opportunity to leverage their leadership and organizational skills in a new capacity. Kelly Zaugg is a decorated Navy veteran and experienced franchise owner. As his agreement with a struggling franchisor was ending, Kelly was looking for another opportunity. Beans & Brews stood out and with the help of the Beans Team, he was able to convert one of his locations.
“They were very engaging upon reaching out, very forthcoming about the business and realistic expectations,” says Kelly. “I learned that Beans & Brews owned about half of the operating stores. This provided not only the expertise for the business but credibility in the market by their own market practice. They have their own skin in the game.”
Military experience results in effective franchise ownership because the military
F r A nch I see I n Act I on: Beans & Brews
veter A ns su PP le M ent
l everaging m ilitary e xperience as a b eans & b rews co FFeehouse Franchisee
instills core values such as discipline, teamwork, and adaptability in its servicemen and women. These qualities translate seamlessly into the world of franchising. Veterans are accustomed to following established procedures, operating within a hierarchy, and adhering to high standards of professionalism. Their ability to lead and motivate teams, manage resources effectively, and navigate challenging situations makes them invaluable franchise owners.
Kelly says his military experience informs his daily work as a franchisee. “Leadership traits and practices I learned as a warrant officer in the Navy assisted me with store operation efficiency, as well as overall personnel management. Having career responsibilities in intelligence gathering and recruiting prospective officers helped me along.”
His experience also comes in handy when working with customers and employees. “Getting others to talk about themselves gives them a sense of self-worth and makes them feel important. Careful listening helps you learn from others what their values are. From customers, this brings loyalty and visit frequency. For employees, it assists to evaluate honesty, integrity and work ethic, a prerequisite for military personnel as well as great employees.”
Compared to starting a business from scratch, franchising provides veterans with
several advantages. Franchises offer a tested business model, a recognized brand, and comprehensive training and support. This support system alleviates many of the uncertainties and risks associated with entrepreneurship. For veterans, the structure and guidance provided by franchisors resonate deeply, providing a smoother transition into civilian life and business ownership.
“Having a franchisor running their own stores alongside franchisees provides realistic expectations rather than company directives based on franchisor opinions of how things should run,” Kelly says of his experience working with the Beans & Brews family. “Operationally it’s much easier to operate and less stressful overall. Custom coffee and drinks provide more opportunities to engage with our customers, creating more positive overall experiences. Guest visit frequency is higher, employees are happier, turnover is reduced, and wages are higher. This makes life as an owner much less chaotic.”
Beans & Brews Coffeehouse stands out as an excellent franchise opportunity for veterans, empowering veteran franchisees with support, incentives, and affiliations. Recognizing the potential in militarytrained individuals, Beans & Brews offers comprehensive support programs tailored specifically for veterans. This includes financial assistance from a
network of lenders offering incentives to veterans, membership in VetFran, ongoing mentorship to ensure franchisee success, and a 15% discount on Beans & Brews initial franchise fee.
By fostering a welcoming environment and celebrating the unique strengths of veterans, Beans & Brews Coffeehouse is an ideal partner for those looking to start their entrepreneurial journey. In addition to Kelly’s Beans locations in Weber County, Utah, Beans & Brews currently has two more veterans preparing to open locations, one of which will be in Yuma, Arizona. For veterans considering franchise ownership, it is essential to conduct thorough research, including evaluating a franchise’s track record, support system, and brand reputation. Veterans should leverage their military skills, embrace their leadership qualities, and approach franchising with the same dedication and commitment that defined their military service. Networking with other veteran franchisees can provide valuable insights and mentorship opportunities.
Kelly found franchising with Beans & Brews a refreshing change from his previous experiences. “Regardless of the company, talk to many other franchisees and ask as many questions as you can think of to get their perspectives and expectations,” he says. “Franchising is a long-term obligation requiring unwavering dedication and hard work, but it can be rewarding.”
tH e Bene Fits o F Military s ervice in Franc Hising h ow a rmy t raining is taking Flight
F or a Franchise owner
The journey from service in the Army to becoming a franchise owner with Wild Birds Unlimited has been full of interesting twists and turns for Paul Gates. He credits much of his success to the military training that instilled in him a sense of discipline, loyalty, honed his leadership skills, and taught him the value of hard work.
Using the delayed entry program, Paul entered the U.S. Army at the age of 18, just weeks after his high school graduation in Evansville, Indiana. His father, himself an Army veteran with service during the Korean War, was a Southern Baptist preacher and supported his son’s decision to join the military, knowing how valuable the service to our country would be for his son. Paul’s mom, a registered nurse, was, like most moms, apprehensive about her son’s choice, but understood that he had
made up his mind and was committed to seeing it through.
“I knew this was the first step in my future,” says Paul, “but I also remember being very nervous. I was 18 years old, leaving home and getting on a commercial airplane for the first time to head to basic training. I was facing the unknown. That was a hard day.”
But he survived basic training in Fort Jackson, South Carolina, and confidently advanced to phase two — AIT, or advanced individual training, at Fort Gordon, just outside Augusta, Georgia. He became a sought-after satellite communications ground station repairman with his first deployment as part of a twoyear joint military operation in Okinawa, Japan. After this tour overseas, he finished his four years of active service as a Specialist E5 at Fort Huachuca, Arizona, a U.S. Army Intelligence and technology center.
Equipped with specialized Army training, Paul’s civilian career took off. He worked
“ I was well-equipped for a career as a result of my Army training,” Paul reflects. “But I was ready for the next step. My wife, Jean, and I wanted to have something of our own.”
68 Franchising M aga Z in E Usa
Fr AnchIsor In DeP th: Paul Gates | Wild Birds unlimited veter A ns su PP le M ent
for Science Applications International Corporation (SAIC) in IT networking as a private contractor for several government agencies in Washington, D.C., including the State Department and Walter Reed Army Medical Center.
“I was well-equipped for a career as a result of my Army training,” Paul reflects. “But I was ready for the next step. My wife, Jean, and I wanted to have something of our own. We wanted a business but didn’t know where to begin, but the good Lord intervened.”
His answer came, rather fittingly, thanks to a Christmas present.
“My wife wanted a birdfeeder for Christmas,” explains Paul. “I went to our local Wild Birds Unlimited store to buy her gift and heard that the store might be for sale. I knew this was it. So, my wife and I chuckle, because that year, Jean got a birdfeeder AND a franchise for Christmas!”
The Gates bought the Frederick, Maryland, store in 2021 and now have the seventhfastest growing store out of the 350 Wild Birds Unlimited stores in North America. Wild Birds Unlimited is a wildlife franchise that caters to nature enthusiasts who enjoy bird-feeding and bird watching. In the short time, Paul and his wife have owned their store, revenue has grown by well over 40%. How have they done it? Paul credits it to his military training.
“Simple as it sounds, I respect the chain of command regarding my franchisor’s
expertise,” he says. “They suggested remodeling the store and utilizing the customer loyalty program to build our location. They are the experts; I follow their guidance and it works!”
Although the appeal for this business was the strength of the brand, Paul also appreciated the 15% discount on the franchise fee that Wild Birds Unlimited offers to qualified veterans. In fact, just under 15% of Wild Birds Unlimited stores are operated by veterans across the brand, a growing trend in franchise ownership here in the U.S. Statistics released by the U.S. Census show there are about 2.5 million businesses owned in part by those who served in the military. The U.S. Department of Veterans Affairs says one in every seven franchises or 14% of all franchises are now veteran-owned.
A group dedicated to educating both veterans and franchisors about the benefits of veteran franchise owners is VetFran. According to their data, 65% of franchisors say the rate of hiring veterans as franchise owners is increasing thanks to the skill sets veterans have acquired from military training.
Paul Gates understands why. “There are two big strengths I picked up from my time in the Army that have helped my business. First, especially working with
satellite technology, I had to think on my own and problem solve. I’m the solutions guy! There’s a lot of that in small business ownership! Plus, the leadership training I received in the Army has absolutely set me up for success while leading my team as a franchise owner.”
For Paul, their Wild Birds Unlimited store is “a 180” compared to what he did previously working in technology. But, he’s a quick study and has become well-versed about birds; he’s now the community expert.
“So, my wife loves birds and can tell you everything about them. I admittedly knew nothing about them. But that’s part of the great training I’ve received from the franchise,” Paul says. “Part of the job I really love is interacting with our customers. I now give customers advice about what feed to put out to attract certain species of birds and the right houses for them. I love it!”
Paul’s come a long way from that nervous young enlisted man to an expert in technology and now a seasoned veteran enjoying franchise ownership with his wife in a community they love. They are truly enjoying that Christmas gift — both the birdhouse and the franchise. It’s the gift that keeps giving.
Franchising M aga Z in E Usa 69
“ Paul’s come a long way from that nervous young enlisted man to an expert in technology and now a seasoned veteran enjoying franchise ownership with his wife in a community they love.”
u nderstanding c lai M s o F Joint eMPloy M ent and eMPloy M ent Misclassi Fication
Second, claimants in joint employment cases argue that the franchises’ workers are the joint employees of both the franchise and the franchisor. Such status would make franchisors liable for the employment practices of their franchises.
Two different but similar legal claims seek to impose additional burdens and obligations on franchisors by attacking the notion that franchisors are not the employers of either their individual franchises or their workforces. First, plaintiffs asserting claims of employment misclassification argue that they are not independent contractors but instead employees entitled to all of the rights and protections flowing from such relationships. In franchising, there has been an uptick in cases where franchisees or government agencies have argued that the individual franchisees are the employees of the franchisor—not independent business owners licensing the trademark and methodology of a franchise system.
This article will discuss two cases which illustrate the typical issues around these claims. Before that, though, some context is important. Challenging the legal rights and obligations within a franchise system and its workforce is a by-product of increased state and federal attention on franchising in general. Unsurprisingly, California has led the way. In September 2019, California passed Assembly Bill 5 which codified the “ABC Test” a plaintiff-friendly regime for employment misclassification claims. Other states like Massachusetts and New Jersey are following suit with their own versions. Last year, California struck again and passed the Fast Food Accountability and Standards Recovery Act or the “Fast Recovery Act.” The law establishes a “Fast Food Council” to set industry-wide
standards for wages, working hours, and other conditions. The law took effect on January 1 and applies to restaurants with more than 100 locations nationwide. Service Employees International Union President Mary Kay Henry called the law’s passage a “watershed moment.” Some worry that these kinds of regulations will spread to other industries within franchising.
There has been just as much activity on the federal level. In September 2022, the National Labor Relations Board announced a proposed rule expanding the circumstances in which franchisors and their franchisees can be jointly liable for violations of federal labor law. The proposed rule essentially resurrects an Obama-era standard in which a plaintiff would no longer need to demonstrate a defendant’s “direct and immediate” control over the putative employees. Rather, merely possessing the authority—regardless of whether it is exercised—would be sufficient to create joint employment.
Then, in March and April, the Federal Trade Commission and the Government Accountability Office respectively weighed
70 Franchising M aga Z in E Usa e XPert ADvIce: Peter loh and Brantley Smith | Foley & l ardner
A fundamental aspect of any franchise system are the relationships between and among the franchisor, the individual franchises, and the franchisees’ workers.
in. The FTC issued a press release seeking comment on “franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.” The FTC went on to say “the promise of franchise agreements as engines of economic mobility and gainful employment is not being fully realized, and the unequal bargaining power inherent in these contracts is impacting franchisees, workers, and consumers.” The GAO followed with a report that franchisees “do not enjoy the full benefit of the risks they bear.”
Now, let’s discuss two example cases. In Patel v. 7-Eleven, Inc., 618 F. Supp. 3d 42 (D. Mass. 2022), five 7-Eleven store owners sued claiming 7-Eleven misclassified them as independent contractors in violation of Massachusetts’s independent contractor law.
The contractual relationship between the parties is that of a typical franchisorfranchisee. The plaintiff franchisees promised to pay 7-Eleven an initial franchise and other fees. In return, 7-Eleven granted the plaintiffs the right to operate 7-Eleven franchised stores. The franchisees also agreed to hold themselves out as independent contractors.
The Independent Contractor Law (ICL) is Massachusetts’s version of the “ABC test”. Like the ABC Test, the ICL presumes an entity is an employer of a worker unless it can establish all of the following:
a) the alleged worker is free from control and direction in connection with the performance of the service, both under his/ her contract for the performance of the service and in fact;
b) the service is performed outside the usual course of the business of the alleged employer; and
c) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as the work performed.
7-Eleven argued at summary judgment that the plaintiffs failed to meet prong “A” of the test presented because the plaintiffs did not provide services to 7-Eleven. Instead, 7-Eleven provided services to
Peter loh is vice chair of the distribution & Franchise Practice Group, litigation Practice Group leader for the South region (dallas, houston, Austin, Jacksonville, Tampa, Miami, orlando, Tallahassee, México City offices), and a first chair trial lawyer at Foley & lardner llP. he represents plaintiffs and defendants in complex commercial litigation disputes throughout the country in the retail, tech, finance, energy, and manufacturing sectors, involving claims of breach of contract, fraud, trade secret misappropriation, tortious interference, and violations of the Computer Fraud and Abuse Act (CFAA) and the Fair and Accurate Credit Transaction Act (FACTA). Specifically, Peter has extensive experience representing franchisors. he has litigated against the department of labor and Small Business Administration on behalf of national franchise systems in cases involving employment misclassification and the issuance of loans from the Paycheck Protection Program (PPP). While he has extensive courtroom experience, Peter also spends a significant portion of his practice counseling clients on how to avoid litigation, recognizing that clients view it as inconvenient, expensive, and unpleasant.
Brantley smith is a litigation associate at Foley & lardner llP. he is a member of the firm’s Business litigation & dispute resolution Practice. Brantley represents public and private companies in a variety of commercial matters, including trade secrets, shareholder disputes, breach of fiduciary duty, and franchise litigation. he has experience in all aspects of litigation matters, including case assessment, electronic discovery, motion practice, depositions, settlement negotiations, trial and appeals.
the plaintiffs through training and other support in return for their payment of fees. The plaintiffs, on the other hand, argued that 7-Eleven imposed requirements upon them including working full time in the store, wearing approved uniforms, and other alleged indicia of an employment relationship.
The Court agreed with 7-Eleven. The plaintiffs provided no services to 7-Eleven, and 7-Eleven did not pay them for anything. Mutual economic interest was not sufficient to establish that the plaintiffs performed services for 7-Eleven. On this basis, the Court granted 7-Eleven summary judgment on the plaintiffs’ claim of violation of the ICL.
This case represents a significant victory for 7-Eleven and other similarly situated franchisors. Defendant franchisors rightfully view the ABC test (and its corollary state statutes) as a difficult standard to meet in proving the lack of an employment relationship. Nonetheless, cases such as Patel v. 7-Eleven provide a possible path to success for franchisors.
A recent decision by a Regional Director of the National Labor Relations Board ruled that Google and Cognizant—a vendor that supports Google’s YouTube service—were joint employers of Cognizant’s workers. The NLRB Director found that Google
“exercise[d] direct and immediate control over benefits, hours of work, supervision, and direction of work. To a lesser extent, Google also exercise[d] control over unit employees’ wages by setting minimum standards.” Looking at the totality of the circumstances, the Regional Director held that Google and Cognizant were joint employers over the workers.
Google has already issued a request for a review of the decision and focused its argument on the workers’ inability to meet the “substantial, direct, and immediate” standard for joint employment, which is the current standard established under the former President Trump’s board. Google also emphasized that the Regional Director failed to properly apply the stricter “substantial, direct, and immediate” standard currently in place. For example, Google alleges the Regional Director’s decision “fails to embrace the full extent of any subsection of § 103.40(c)” and, instead, “included only piecemeal phrases from each subsection and omitted language that conflicts with his conclusion[s].”
Franchisors should expect continued pressure from private action plaintiffs and government agencies alike. Accusations of worker misclassification and joint employment are but two ways adversaries of franchising can apply such pressure.
Franchising M aga Z in E Usa 71
Be A ns & B R ews co FFee house
b eans & brews coffee h ouse has been around since 1993, when the Laramie family opened shop next to s alt Lake city’s beloved hangout, Liberty park.
t he family refined the process of high-altitude roasting™, which required special tweaks just like high-altitude baking. t hey soon got the process just right, and they built a reputation for uniquely smooth coffee in a friendly neighborhood setting. b eans & brews—or “ b eans,” as friends call us for short—is now a staple around Utah and its friends, idaho and nevada.
t he Laramie family still owns and operates our headquarters, and many baristas from our earlier days have grown into senior roles as managers, directors, and V ps. t hey carry on our best
Bus I ness F I n A nce d e P ot
business Finance depot specializes in packaging equipment leases and sba Express Working capital loans for start-up and existing businesses.
our main clients are franchisors seeking financing for their new franchisees and manufacturers seeking financing for their equipment purchases.
cLAyton k endALL
clayton Kendall provides a simple, easy to use e-store platform that connects your franchisees to our integrated front-to-back inventory management system. our system controls the creation, production, fulfillment, distribution and shipping of all your marketing and sales
co M et cL e A ne R s
FRA nch I se gR ou P, LLc
become a part of the largest family-owned dry cleaning chain in the Usa through our franchising opportunities. be your own boss, feed that entrepreneurial spirit, do business that not only helps individuals but your community as a whole. comet cleaners and Laundry services is here to help you help others. our 60 years of brand history speaks
FA sts I gns®
now more than ever, businesses look to Fastsigns® for innovative ways to connect with customers in a highly competitive marketplace.
o ur high standards for quality and customer service have made Fastsigns the most recognized brand in the industry, driving significantly more traffic to the web than any other sign company.
We also lead in these important areas:
• #1 Ranked Sign Franchise in Entrepreneur Magazine
Franchise 500 three years in a row
• Franchise Business Review FBR50 Franchisee Satisfaction award 2006-2015
traditions and work to create new ones too. Meanwhile, around the region, locally owned franchises brew up our beloved recipes for their own neighbors. o ur guests are our reason for getting up in the morning. We love greeting regulars with their favorite drinks, made just the way they like ‘em. and we dig getting to know newcomers and welcoming them to the b eans community.
come in for a cup, alone or with a friend, and make yourself at home. and let us know how we can make your day a little brighter—whether it’s adding extra whipped cream or it’s donating a gift basket to your little-league fundraiser. cheers, and stop by soon.
contact: Kim Falk Email: kfalk@beansandbrews.com
our company also works with sba 7(a) lenders, alternate financing sources, crowd funding financing sources and companies that specialize in using retirement funds to capitalize a new business. please visit our website for more information.
Website: www.businessfinancedepot.com
Email: paul@businessfinancedepot.com
phone: (800) 788-3884
contact: paul bosley
materials including uniforms, signage, branded merchandise and print collateral. clayton Kendal is the single source marketing solution for dozens of national franchises.
contact: dan broudy, cEo
Email: dan@claytonkendall.com
phone: 412-798-7120 (1-888-799-4757)
Website: claytonkendall.com
for itself when it comes to customer loyalty and trust. We are an easy and straightforward business to learn, allowing you more time to spend focusing on profits than building business expertise.
For more information:
contact: Jack d g odfrey Jr.
phone: 888-461-3555
Email: franchising@cometcleaners.com
Website: cometfranchising.com
• Franchise Research Institute World Class Franchise 20112015
• Franchise Research Institute #1 Rated Sign & Graphics
Franchise 2014-2015
• CFA Franchisees’ Choice Designation 2004-2015
• FASTSIGNS is one of only a handful of franchises approved for $21 million in sba financing for approved franchise candidates
Fastsigns has over 400 markets approved for development in the Us and canada and is also seeking Master or area developer expansion in markets worldwide.
For more information: phone: 1-214-346-5679
Email: mark.jameson@fastsigns.com
o r visit our Website: www.fastsigns.com
72 Franchising M aga Z in E Usa
F r A nch I se & serv I ces DI rectory
FA zo LI ’s
Founded in 1988 in Lexington, Ky., Fazoli’s owns and operates nearly 220 restaurants in 28 states, making it the largest premium Qsr italian chain in america. Fazoli’s prides itself on serving premium quality italian food, fast, fresh and friendly. Menu offerings include freshly prepared pasta entrees, subs, salads, pizza and desserts – along with its unlimited signature breadsticks. Fazoli’s offers dynamic build outs, digital-forward infrastructure and multiple revenue streams that provide a strong hedge against inflation. named a recession- proof Franchise by Franchise business review, Fazoli’s is a stable opportunity that’s stood the test of time and is backed by multi-
g ene RAto R s u Pe R cente R
g enerator supercenter is the #1 seller of g enerac generators, and this allows you to enter this emerging market with instant brandname recognition that is associated with quality and reliability.
people know our brand name and trust the brand products that we offer. g enerator sales are part of a growing industry that appeals to both the public and private sectors.
g R e A se M onkey
Founded in 1978 and part of the Fullspeed automotive® family of brands, grease Monkey® has grown to more than 500 centers internationally with operations in the United states, china, colombia, Mexico, and saudi arabia. t he brand has flourished, thanks to a commitment to customer service, innovation, and driving strong roi for franchisees.
o ne reason grease Monkey is a great business opportunity is because nearly everyone in america drives, and more than 99% of the vehicles on U. s roads need regular oil changes. americans cumulatively drive about 3.2 trillion miles per year, and americans are keeping their
I MAge o ne usA
image o ne Usa is a commercial cleaning services business. t he image o ne franchising model was formed on the principles of transparency, training, and top-notch financial and customer service support. it is regularly recognized as a top franchise by third-party franchise and business publications, including cnbc.com, Entrepreneur. com and Franchise business review.
image o ne franchisees work for themselves in a unique relationship with the franchise company. image o ne provides them with customer support for their business, ongoing training, along with assistance with billing, equipment and sales training. image o ne
k u M on n o R th A M e RI c A Inc.
high school math teacher toru Kumon developed the Kumon Method of learning more than 60 years ago in Japan, when his son was struggling with second-grade arithmetic.
realizing that a strong foundation in the basics-addition, subtraction, multiplication and division-was essential for higher-level math, Kumon created a series of math worksheets for his son to work on after school.
generation owners. With less operational complexity than typical Qsr franchises, strong drive-thru sales and a defensible and differentiated concept, Fazoli’s provides a great development alternative to other quick serve restaurant options. Fazoli’s is a winner of Fast casual and steritech’s 2020 Excellence in Food safety award and ranked number seven on Fast casual’s “ top 100 Movers and shakers” list in 2022. additionally, it was named to technomic’s “ top 500 chain restaurant report” in 2022, selected as one of the “ top 50 g lobal Fast casual innovators in 2021” by Foodable, a “ top 200 Franchises in 2021” by Franchise business review, and an Entrepreneur 2018 “Franchise 500.”
by becoming a g enerator supercenter home services franchise partner, you can benefit from our impeccable reputation, established business model, customer service network, and proven experience in the power supply industry.
For more inforamtion: contact: glenn Leingang phone: 281-251-6100
Email: glenn@generatorsupercenter.com Website: generatorfranchise.com
vehicles longer than ever before. according to research conducted by s & p global Mobility, the average age of light vehicles in the U. s. rose to an all-time high of 12.2 years in 2022. t his is the fifth straight year the average vehicle age in the U. s. has risen. drivers understand that to extend the life of their vehicles, routine maintenance is a must.
Even if you don’t have automotive repair experience and are simply exploring the industry because of its stability and strong margins, you can be assured that you will be backed by a large franchise support team dedicated to your success. We provide training, marketing support, and a wide range of tools to help you find customers and serve them well!
provides necessary training, tools and support to help franchise affiliates build their business, including teaching franchisees the latest cleaning techniques and empowering them with insights on best-in-class equipment and technology. ongoing training is delivered both at image o ne’s corporate headquarters and onsite at existing client locations to ensure that franchisees continue to grow their own businesses. image o ne has commercial cleaning franchise locations covering chicago, cincinnati, dallas, d enver, d etroit, Fort Myers, nashville and o rlando. Franchise territories are available nationwide.
For information on the franchise, visit http:// image o neUsa .com
With daily practice, Kumon’s son gradually expanded his mastery of mathematical skills and by sixth grade was able to solve differential equations and integral calculus problems. today, at locations throughout north america, Kumon franchisees apply this method of daily practice and self-paced advancement to children’s math and reading skills.
phone: 201-928-0444
Website: Kumonfranchise.com
Franchising M aga Z in E Usa 73
F r A nch I se & serv I ces DI rectory
t he no R th AM e RI c A n IMMI g RAt I on Agency
t he north american immigration agency is a well-established company that specializes in immigration services, catering to individuals and businesses aiming to navigate the intricate process of relocating to the United states. renowned for their expertise, professionalism, and commitment to client success, naia offers a wide naia acts as a crucial link between franchise sellers and prospective investors. Leveraging their extensive network and industry knowledge, they effectively connect the two parties. With their guidance, franchise sellers gain valuable insights into the specific requirements and expectations of investors seeking american visas. b y equipping franchise sellers with the necessary tools and resources, naia enables them to present
n e R ds to g o
Build a future with the computer service industry pioneers and accomplish your business dreams with NerdsToGo! computers, handheld devices, tablets, and mobile phones are all things that only continue to grow and change the landscape of the technology industry in the 21st century. t hat is why nerdsto g o is such a lucrative concept. With businesses, homeowners, and individuals continuing to rely
oh M F I tness
ohM Fitness is a franchise that provides a revolutionary fitness experience using wireless electrical muscle stimulation (EMs) technology integrated into a small group setting.
t he EMpower suit allows customers to complete an intense 2–3-hour workout in just 25 minutes. it is a low-impact workout that puts minimal stress on the joints, ligaments, and muscles, making it suitable for all fitness levels. ohM Fitness is the first fitness franchise to offer this wireless EMs technology in a group setting.
Re M edy sPA & sALon s u I tes
remedy spa & s alon suites first opened its doors in atlanta, g eorgia in 2018. a s an attempt to enter the highly profitable health and beauty industries, remedy spa & s alon suites came equipped with 22 fully leased salon suites. to date, they have opened three locations through Metro-atlanta. amenities and perks to leasing include: 24/7 access, private upscale studios, spacious single/double suites, private parking, valet parking and premium fixtures, finishes and appliances.
Franchisees will obtain access to the brand, tested and proven processes and support, purchasing power and distribution
sLIM c h I ckens
slim chickens, a leading fast casual franchise which features dine-in and drive-through in the better-chicken segment, opened in 2003 in Fayetteville, arkansas.
o ffering high-quality food with a focus on fresh, delicious ingredients, the brand prides itself on its southern flair and commitment to hospitality, all in a fast-casual setting.
Food is cooked to order, and the differentiated menu features chicken tenders, fresh salads, sandwiches, chicken and waffles, chicken wings and unique side items, alongside 17 house-made dipping sauces.
today, there are more than 145 slim chickens locations open and 700 restaurants in development. t he brand, which recently launched a strategic multi-unit franchise growth initiative to reach 700 units in
their franchise opportunities in an attractive and appealing manner to potential investors.
in summary, naia is a highly regarded immigration firm that offers a comprehensive suite of services for individuals and businesses looking to relocate to the United states. t heir expertise in franchise sales makes them an invaluable resource for companies seeking to expand their potential buyer’s list, while also aiding investors in qualifying for american investor visas. With their emphasis on personalized attention and exceptional service, naia is dedicated to helping clients navigate the complexities of immigration and achieve their immigration goals.
phone: 514-225-1748
Email: yannis harrouche yharrouche@gonaia.com
Website: www.gonaia.com
on technology, handling the repairs, computer service and support, and other computer services that can accompany a technologically based society seems like second nature. t his means franchise owners can tend to the high demands of a reliable customer base and reap the financial benefits by taking advantage of a constantly innovative, inventive, and lucrative industry. contact us today to learn why nerdsto g o is one of the fastest growing computer service and technology franchises in the United states!
t he technology helps individuals work their muscles more effectively than with conventional workouts, producing better results in less time. ohM Fitness is ideal for health enthusiasts looking for real results without enduring the high-intensity stress of hiit training. it is also a perfect fit for those in recovery or fitness newbies, as well as busy parents and professionals. it doesn’t produce damaging cortisol spikes associated with stress, making it ideal for everyone.
contact: d oug payne
phone: (480) 582-2900
Email: franchisees@ohmfitness.com
Website: www.ohmfitness.com
chains, cooperative marketing, new product research, development and roll-out, experienced training staff, and continuing training and education.
Franchising opportunities are available to entrepreneurs and investors in all industries but will be particularly appealing to health and beauty enthusiasts.
remedy spa & s alon suites already has an established market presence and substantial market penetration in atlanta. From this successful platform, the company is looking to expand the brand in select key areas domestically.
www.remedysalonsuites.com/franchise remedysalonsuites@gmail.com
10 years, is targeting qualified and experienced multi-unit groups to develop in dynamic markets across the country.
t he brand prides itself on its cooked-to-order fresh food and strong devoted fanbase, also known as “ slimthusiasts.” Fans also resonate with the southern contemporary look and feel and open and inviting layout of slim chickens restaurants, which speak to the hospitality mindset that anchors the brand.
t he slim chickens franchise opportunity differentiates itself with prime markets available for multi-unit development, a passionate leadership team and world-class franchisee support system. a s slim chickens expands, it is awarding franchise opportunities to qualified, experienced and passionate multi-unit groups looking to add a dynamic segment to their portfolio.
For more information on the slim chickens franchise opportunity, visit slimchickensfranchise.com
74 Franchising M aga Z in E Usa
F r A nch I se & serv I ces DI rectory
s O uthern steer butcher
Founded in 2013 by greg snyder, southern steer butcher was designed to be a trusted source for customers to feel confident in their selections after each and every visit. t he story all started after greg made a visit to a similar style shop while traveling and recognized this level of butcher shop was lacking in his own hometown of clearwater, Florida. From then on, greg set his sights on filling this need in his community and began work on launching southern steer.
Each location offers a wide selection of premium meats, sides, desserts, craft beers, and wine. in addition to the variety of products, the brand also offers pre-assembled
ssc P M A n Age M ent, Inc.
sscp Management, inc. is an award-winning, familyowned and operated management company with a portfolio of high-profile restaurant brands and real estate holdings.
t he dallas-based company is a leader in the restaurant industry with established, high-profile brands such as the 300-unit cici’s pizza brand, 44 sonic drive- in locations, 80 applebee’s locations, the roy’s hawaiian fusion chain, and JMc distribution. t he management company also owns a diverse real estate portfolio with more than 100 assets that includes shopping centers, medical office buildings, industrial, and multi-family properties across the United states. sscp Management’s real estate practice focuses
t he e nt R e PR eneu R ’s s ou R ce
Established in 1984, t he Entrepreneur’s source® is north america’s leading career o wnership coaching™ franchise dedicated to empowering those who yearn to be self-sufficient and want to take control of their lives by finding a pathway to help them achieve their income, Lifestyle, Wealth and Equity goals.
t he Entrepreneur’s source® has grown
t he R ed c h I ckz
We’ve d one the heavy Lifting for you
We know the restaurant business and have done our homework. From the homestyle kitchens of nashville to t he red chickz restaurants that will be popping up everywhere, we’ve created something really special in an untapped, sizzling market.
We make it simple. o ur team has worked our tails off to create a superior business model that is streamlined and simple to operate. We designed
Veteran s er V ice b rands
Veteran service brands (Vsb) is the umbrella organization for four distinct, but affiliated service brands - all of which are exclusive to military veterans.
capitalizing on our success with g -ForcE (the first franchise brand exclusive to veterans), we are adding Mach onE Epoxy Floors, FiELd ops athletic Field Markings, and paint corps (like Marine “corps”) franchise systems to the Vsb family of veteran-only franchises.
initial investment starts as low as $20,000 for FiELd ops (assuming possession of a suitable pickup truck) and runs as high as $150,000 depending upon which brand, size of territory, truck choice, and equipment package.
Franchise Fees are deeply discounted for the first five franchise partners of our new brands (some are already spoken for).
meal packs. Every meal pack contains 5 meals with all of the required ingredients for each dish, all that’s left is to prep, serve, and enjoy.
For those looking to be a bit more involved in the meal prep process, southern steer also offers prep classes. t he classes are designed for each participant to fully prep and pack 10 meals, each serving a family of 4-5. continuing to be a hit among customers, with many returning to the classes again and again to prep delicious meals for the whole family, and maybe learn a thing or two in the process.
For more information about southern steer butcher’s franchising options, please visit https://southernsteerfranchise.com/
on portfolio purchases, individual purchases, multi-family investments and retail properties. Led by president chris dharod, the company’s primary objective is to strengthen the communities it invests in and provide second-to-none service through all its business ventures.
sscp is looking to significantly increase their holdings as they build a larger presence in the commercial real estate world, focusing on acquiring retail and additional multifamily properties nationwide
contact: Kerry a ssa, director of real Estate: 214-926-4873 (Kerry’s cell) or 972-644-9494 x 128 (real Estate general box)
Email: kassa@sscpmanagement.com
Website: www.sscpmanagement.com
continuously since it started franchising in 1998 and continues to lead the $1.5 billion business coaching franchise market in north america.
t he Entrepreneur’s source® network of career ownership coaches offer coaching to individuals seeking alternate career possibilities outside of the traditional job market.
For more information about t he Entrepreneur’s source, please visit entrepreneurssource.com.
this with systems and growth in mind, so you can become the next proud owner of a t he red chickz restaurant franchise with ease.
an investment in a restaurant franchise like t he red chickz is an excellent way to break into the foodservice business or expand your already existing restaurant portfolio. We seek qualified business owners who understand or appreciate the restaurant industry and are fired up about our brand.
www.theredchickz.com
Mach onE and paint corps normally have a $25,000 Franchise Fee (some of the lowest in their industries), but offer the first five a steep $15,000 discount.
FiELd ops, already a low $10,000 Fee, offers a 50% discount for the first five takers.
Veterans joining the Veteran service brands family enjoy instant camaraderie, proven systems in high demand businesses, group discounts, and more.
Vsb is actively recruiting qualified veterans across the country to join our team.
Vsb is already the largest veteran-only franchise system and expects to triple its size in the next 12-18 months.
For more information, visit www.Veteranservicebrands.com
Franchising M aga Z in E Usa 75
F r A nch I se & serv I ces DI rectory
a-Z listings are a great way to ProMote your Business www.franchisingmagazineusa.com Making an appearance every month in Franchising USA magazine. Each detailed, 4 color A-Z listing comes with a 150 word write up and your logo. Excellent for branding and recognition. choose a 12 or 6 month package or simply add the a-Z directory onto your fOcus, prOfile or ad! to learn about the a-Z directory or any other products, please contact Vikki bradbury: vikki@cgbpublishing.com