Franchising usa T he ma g a z ine for franchisees
VOL 02, ISSUE 10, aug 2014
$5.95 www.franchisingusamagazine.com
WG Storage & delivery
Bringing Class to the Moving Industry
8 Best Blogs
to follow about Franchising M a i n F e at u r e
Mobile Franchising LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
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Franchising usa T he ma g a z ine for franchisees
FRANCHISING USA VOLUME 2, ISSUE 10, aug 2014 president: Colin Bradbury. colin@cgbpublishing.com
Publisher: Vikki Bradbury. vikki@cgbpublishing.com
Editorial Department:
from the
Publisher
editor@cgbpublishing.com
Editorial team: Rob Swystun Stephen Kelly Gina Gill Lori Ann Comeau
Advertising Sales: advertising@cgbpublishing.com
Production: Samantha Klimecki. usaproduction@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: WG Storage and Delivery
CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 778 426 2446 Editorial: 778 426 2446 www.franchisingusamagazine.com Proud member of the IFA:
As you read this issue of Franchising USA which offers some great insights into the world of Franchising take a moment to ask yourself where you see yourself in 10 plus years. When choosing the right franchise for you it’s important to remember that this is a
lifetime commitment and having a passion for what you do is one of the many keys to success.
On the cover this issue we have WG Storage and Delivery, the White Glove moving
company who aim to bring a touch of class to the moving industry but who also offer so much more.
Continuing this theme we have our regular feature by Rob Swystun highlighting the
many benefits of Mobile Franchising which incorporates such options as cleaning, pets, food, and even health and fitness. The choices are endless and you are sure to find a franchise that suits you, the potential franchisee, and that’s great news.
As always our experts are on board with some great advice. For example Adam
Heitzman from HigherVisibility suggests 8 blogs to follow about franchising - the more information you have the better and blogs offer topics and questions that you may not have even thought about. Andy Roe of SurePayroll raises the topic of letting go and why it can be good for business.
Our ever popular Veterans Supplement has Liberty Tax on the cover and we talk to
one of their many successful Franchisees. James Mingey discusses “Soldier’s Heart”
SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org
a subject that is certainly in the media today and commonly known as Post Traumatic Stress Syndrome.
I hope you enjoy this month’s read and may I wish you all success in your future endeavours.
Vikki Bradbury Publisher
The 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, resold, hired out, without the express permission of the publisher.
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august 2014
On the Cover
34
10 Cover Story WG Storage and Delivery
30 8 Best Blogs to Follow About Franchising
Adam Heitzman, HigherVisibility
34 Feature Article
72
Mobile Franchising
48
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Contents In Every Issue
Spotlight on Service
06 Franchising News Announcements from the Industry
70 Definitive Software Solutions
34 Feature Article Mobile Franchising
Focus
53 Veterans Supplement Liberty Tax
16 TruBlue Total Home Care 68 Dr. G’s Weight Loss & Wellness
Franchise Profiles
Have Your Say
12 Colors on Parade
32 Cellairis
74
40 Great American Deals
Red Mango
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78
Expert Advice 14 Why Tech Startups Fail Michelle Joseph, PeopleFoundry 18 Letting Go: Running a Franchise Means Not Always Doing Things on Your Terms Andy Roe, SurePayroll 24 Thinking Outside The Box. Taking Your Franchise Dream Mobile George Knauf, FranChoice
38 Francorp’s Chairman Weighs the Effect of a Minimum Wage Increase Don Boroian, Francop 48 Three Ways FLSA Regulations Can Overwhelm a Spreadsheet-Based Payroll System Howard Tarnoff, Ceridian
18
30 8 Best Blogs to Follow About Franchising Adam Heitzman, HigherVisibility
50 When it Comes to Store Analytics, Franchise Networks Need to Act Like Chains Mark Ryski, HeadCount Corporation
76 From Connecticut to Qatar: Take Your Business Beyond the Borders Tariq Farid, Edible Arrangements 78 Driving Local Customers to your Business Using Google My Business Andre Kay, Sociallybuzz
76
72 Couples Therapy. A Franchise Lawyer’s Perspective Michael Daigle, Cheng Cohen
Franchisee in Action 20 Nestlé Toll House Café
Franchisor in Depth 26 Xpresso Delight 44 Renue Systems Franchising USA
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what’s new!
Asian Food Franchise Spreads the Madness to New Markets
Young restaurant brands are often faced with skeptics when expanding outside their home base. Teriyaki Madness, a fast-casual Asian grill concept founded in Las Vegas, has let the success of recent openings in Colorado, California and Arkansas do all the talking for them. The company was warned that their “Vegas brand vibe” would face many challenges outside its hub market. Aiming to prove doubters wrong, Teriyaki Madness teamed up with professionals at Franchise Sherpas, a franchise incubator and development company, and moved its headquarters to Colorado. The record setting sales results of the Denver location, its first outside Las Vegas, was a telling sign that Teriyaki Madness was going to become a national hit. “Our concept is fueled by giving customers a hearty, proteinpacked experience that is fresh, fulfilling and fits their lifestyle,” said Rod Arreola, CEO of Teriyaki Madness. “With newly signed agreements in Florida, New Jersey, Ohio, Texas and Virginia, we’re on pace to meet our projected 100 national locations by 2016.” Teriyaki Madness has seen a 16.97 percent increase in same store sales year over year by simplifying the menu and introducing best practices that have contributed to the robust unit-level economics. The sales growth has encouraged Teriyaki Madness franchise development that is planned for nationwide expansion. For Teriyaki Madness franchising information please visit: www.franchise.teriyakimadness.com
PIZZA FACTORY EXPANDS & REBRANDS Pizza Factory, one of the leading pizza franchise operations in the U.S., is spicing up its customer-friendly and community-oriented image by unveiling the first brand refresh in the 110-store company’s 30-year history. The makeover of the “We Toss ‘em, They’re Awesome” pizza chain marks a major milestone for Pizza Factory President and CEO Mary Jane Riva. “While our customers continue to receive our scrumptious pizzas, made with 100 percent real mozzarella cheese, hand-tossed dough, and mouth-watering sauce, each restaurant will get vibrant new merchandising, signage, menus, and dinnerware,” says Riva, a franchisee who acquired the company in 2012. “I’m really
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excited about the new and improved look of our brand.” In addition to its pizza ingredients, another thing won’t be changing: “our support,” says Riva, “of every community where we’re located.” Since its founding in 1985, Pizza Factory has been encouraging its franchisees to back community events and dress up their stores with personal touches, local memorabilia, photos and more. As it unveils its new look, the chain is expected to grow even more. “We want to have 20 new locations this year and already reached the halfway point in June,” she says. For more information visit: www.pizzafactory.com
Arby’s Announce Remodeling Plans Architectural plans were released to franchisees in June of this year. The company plans to significantly expand the number of remodels in 2015. Exterior enhancements include: cantilevered red awnings at the primary touch points, new internally-illuminated signage, wood tones, white brick, enhanced lighting for strong visual impact at night and upgraded landscaping around the restaurant. Interior enhancements include: an inviting color palette using updated, fresh materials, subway tiling and stainless steel in the kitchen, multicolor wood materials, modern lighting and chalkboard graphics. Arby’s Restaurant Group, Inc. (ARG) announced its plans to launch a major remodeling program across Arby’s nationwide network. This revitalization initiative includes a new building image, team member re-training program and franchisee remodel financing solution.
After testing various design alternatives in 2013 and early 2014, Arby’s is now planning to remodel at least 30 companyowned restaurants to the new Inspire image this year in key markets, including: Huntsville, Alabama; Indianapolis, Indiana; Youngstown, Ohio and Salt Lake City, Utah.
Additionally, the brand revitalization effort includes a half-day, offsite Brand Camp session for all restaurant team members. In Brand Camp, team members learn about Arby’s purpose, core values, and how they can deliver a better overall guest service experience. For more information visit: www.arbys.com
OsteoStrong Signs Franchise Commitments for 500 Units in 9 States OsteoStrong, the scientific health and wellness system that boosts bone and muscle strength in less than 10 minutes a week, is the new brand that’s delivering the benefits of hours at the gym without making clients break a sweat. Two years ago, the brand introduced a new fitness era based on cellular biology research. More than 30,000 participants between ages eight and 92 have experienced documented improvement in strength, balance, endurance, and bone density. One June 24, nine regional developers signed commitments to launch 500 locations in Alabama, Arizona, California, Florida, Idaho, Illinois, Nebraska, Nevada, New Mexico, North Carolina, Pennsylvania, Tennessee, Texas, and Utah. The solution leverages osteogenic loading, which triggers the body’s natural ability to rebuild through brief, concentrated resistance exercises. Once the body’s process is triggered, strengthening continues for days after sessions. OsteoStrong calibrates every session to fit individual needs so no one is ever pushed beyond their limits, making the succinct weekly program ideal for anyone. Athletes, people concerned with
bone density, and those suffering from fibromyalgia and multiple sclerosis have experienced improvement. At $50 to $80 a month, OsteoStrong is a low cost wellness option. However, golfers say the improvement in their swing alone is priceless. For more information visit: www.osteostrong.me
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what’s new! Good Feet Worldwide Announces Mobile Foot Care Available as a New Franchise Option Good Feet Worldwide, LLC, will soon be ‘taking foot care on the road’ with the announcement of Good Feet® mobile units as an option for franchisees. The concept was created to allow for new business opportunities in rural markets where there may not be sufficient retail store traffic. “Good Feet mobile units are the first endeavor to bring foot relief to our customer’s front door,” said Neal Weiss, Director of Franchise Development, Good Feet Worldwide, LLC. “Good Feet strives to personally fit all customers based on their lifestyle activities and preferred shoe types. We’ve assembled all the tools needed to do that into a single mobile
concept, and we can now provide an arch support fitting that meets their daily lifestyle and time constraints.” Good Feet mobile units afford franchisees an option to Good Feet brick-and-mortar retail outlets at a substantially lower startup. The mobile units include: a high tech 3-D foot scanner to accurately measure the customer’s arch size (often different than shoe size) a variety of different arch support styles and sizes that help Good Feet provide each and every customer with a personalized fitting that works best with their individual shoe styles and physical activities. With over 25 different arch support styles and 350 arch support sizes, Good Feet offers individualized comfort solutions to reduce or completely eliminate foot pain.
For franchises call 800-508-4086, or visit www.goodfeet.com.
JOEY Restaurants Launch New Cocktail Lineup and Fresh Juicing Program The new focus for Joey Restaurants is on crafted cocktails that are delicious, balanced and fresh, where the quality of the ingredients speaks for itself. All of their cocktails use juice that is squeezed in house. They have paralleled this with unique ingredients that are exclusive to JOEY including passionfruit syrup, elderflower cordial and custom bitters. The new lineup includes:
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Garnished with a crisp watermelon radish it has some real curb appeal. Passionfruit Margarita Made with egg whites to add a frothy richness this drink is brought to the next level with vibrant tropical flavours. Blueberry Mojito
The Elderflower Collins
Blueberry vodka acts as the base while fresh blueberries, lime juice, organic cane syrup and mint. This JOEY original is back for the summer.
This gin classic is transformed with fresh grapefruit juice and notes of elderflower.
For more information visit: www.joeyrestaurants.com
Philly’s Best Continue Expansion Philly’s Best, the Southern California destination for authentic Philly cheesesteaks and hoagies, announced its continued expansion throughout the region with restaurants coming soon to San Clemente and Orange. The company, which opened its first shop in Fountain Valley, California, in 1992, has 22 locations across Southern California. The company’s San Clemente restaurant, located in the Ocean View Plaza Shopping Center, will be developed by Fresh Era Inc. – an affiliate of Galamar Enterprises, established in 1984.
Philly’s Best franchisees, Ken Gray and Larry Erdman. Prior to becoming Philly’s Best franchisees in 2011, Gray and Erdman spent 25 years with Subway, facilitating the development of more than 200 Subway restaurants across Southern California.
The company’s restaurant in the City of Orange, located at 1409 W. Chapman, Suite C, will be developed by existing
Philly’s Best has built a successful franchise model through proven efficiency at the corporate level, and delicious,
consistent food at the store level. This includes facilitating delivery of authentic Philly sourced ingredients for each store; a unique twist that makes Philly’s Best Southern California’s go-to shop for authentic Philly cheesesteaks and hoagies. Interested potential franchisees can contact Tom Rinehart, Director of Franchise Operations with Philly’s Best, at trinehart.pb@sbcglobal.net.
Joyal Capital Management Closes Deal for Dunkin’ Donuts Largest Franchisee Deal is first in a series that will result in the total acquisition of 50 stores by the end of the summer Joyal Capital Management LLC, a Boston-based financial advisory firm that specializes in estate and business planning and investment management, has announced that its client, Cafua Management, is purchasing 20 South Florida Dunkin’ Donuts locations, with plans to acquire an additional 30 locations in late summer. The acquisition of the 20 stores in Broward County will give Cafua Management more than 300 locations across eight states and makes them the largest Dunkin’ Donuts franchise owner. Joyal Capital
Management and its affiliates are the largest providers of financial services to Dunkin’ Donuts franchises in the U.S. and have closed more than $500 million in franchise purchase transactions. “We had a vision of what we wanted to accomplish in growing our business,” said Mark Cafua, CEO of Cafua Management. “JCM was perfectly positioned to help us achieve that goal.” As the financial advisors for the deal, JCM was instrumental in closing the purchase, acquiring the debt placement for the deal,
and will continue to consult with Cafua Management. “The Dunkin’ Donuts brand has seen robust growth over the past few years while providing excellent returns for investors,” said Gary F. Joyal, CEO and Managing Partner of Joyal Capital Management (pictured). “We’re delighted that we could support Mark’s efforts to expand and look forward to continuing a great partnership.” For more information please visit: www.joycapmgt.com
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cov er sto ry by Rob S w ystu n
WG S torag e a nd Deliver y
WG Storage and Delivery aims to bring some class to the moving industry President and CEO James Miri said during a recent interview from the company’s headquarters in Austin, TX.
“We’ll come in and do the packing and unpacking, so we’re very full-service on the residential side,” Miri said.
And, yes, employees actually do wear the white gloves that the company is named after to help protect those expensive pieces of art and furniture they are handling on a regular basis.
And WG’s residential clients get the same high level of service that its commercial clients enjoy, so your finely upholstered couch is going to be treated the same as a priceless work of art.
Changing Perceptions
Because WG actually does provide a higher level of service than its competitors - gloves and all.
But, the company goes beyond just moving and storage. For commercial clients, WG provides inventory management, receiving and delivery. The company often works with interior designers who order directly from manufacturers. Their shipments come into the WG facility and WG acts as their warehouse and then they do the installation of the furniture as well.
WG does a lot of work with interior designers, art galleries, showrooms and antique dealers, meaning they handle some pretty delicate and expensive items,
On the residential side, WG offers complete moving service whether clients are moving within the Lone Star State or moving out of state.
“We saw a need for a company who can come in and do it really well with a level of service that hasn’t been offered before,” Miri said. “We offer a polished level of
The “WG” in WG Storage and Delivery stands for White Glove, and while you might think that’s just a fancy name meant to invoke a sense of sophistication for a mere moving and storage company, you’d be wrong.
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The moving industry can often have a bad reputation, Miri pointed out. Everyone seems to have a horror story about moving companies. With WG, Miri and company are aiming to change people’s perception of what a moving company is, and they’re doing it with their offer of impeccable service.
“We offer a polished level of service for this industry, where it’s been lacking in the past.” service for this industry, where it’s been lacking in the past.” When it came time to grow the business, franchising seemed like the most obvious choice because the industry was wide open in that regard. “We feel like we don’t have a lot of competitors in our space from a franchising perspective,” the CEO said. “WG represents a great opportunity for potential franchisees,” he said, “because they aren’t as limited in terms of territory as they normally would be by a franchising agreement. Unlike the majority of franchises, WG’s territories are huge, meaning franchisees are able to have an entire city to themselves, which allows them to really expand their business like no other franchising opportunity out there. “We’re offering the opportunity to have very large territories so you can build a very large business, which isn’t really the case for most franchises,” he noted. “They want to control how much territory that you can have.” Founded in 2005, WG started franchising at the end of 2013, opening a franchise in Houston. Prior to that, the company opened a corporate location in Dallas. Miri wants to continue expanding into southeast Texas and is seeking franchise partners nationwide. “We really want to start from home and grow out,” he said. “We don’t want to scatter ourselves everywhere. We want to concentrate on building our brand geographically.”
Need for Service Miri said the biggest need for this service is with highend clients. There is a void in the moving industry for this type of business and he aims to fill it. Although there are other companies offering similar service for high end clients, Miri doesn’t
think they’re doing a good job, which opens the door for WG to fill the void for a moving company with a high service level. The CEO believes franchising will be a solid way for the company to grow, particularly because he’s so familiar with franchising himself, having spent 10 years as a franchisee in the service industry. “I feel like franchising is a great vehicle to expand, rather than doing it all ourselves,” he said. With franchising, Miri added, WG can teach people how to create and run a successful business. And part of running a successful WG franchise is embracing the use of technology, such as the use of tablets for inventory control and using GPS in their trucks to help with fuel efficiency. “A lot of people are stuck in their old ways of doing things and we’ve really spared no expense to try and be the best in the industry,” Miri noted. The idea for WG came from when Miri used to be a franchisee himself with a packing and shipping franchise that catered to affluent neighborhoods. He recalled many of that company’s clients asking about a full service moving company, which told him there was an opportunity in that sector by offering people an extremely different experience when it comes to moving.
The Ideal Franchisee “WG’s ideal franchisee would have strong marketing, sales and management background,” Miri said “and would concentrate on building the business on both the residential and commercial side. They would also understand and be dedicated to offering the level of service that sets WG apart from its competition.” The process for someone to go from prospect to franchisee takes 3-6 months,
starting with initial interviews and meetings to see if a prospect would be a good fit and making sure the prospect knows the territory they want to get into. If a prospective franchisee is found to be a good fit, then the training starts, which includes both on-the-job and classroom training that starts in Austin and continues in the franchisee’s territory. WG also helps the new franchisee find a facility location, helps them get their trucks in order, helps them buy the necessary equipment and assists with the hiring process. The franchising process usually starts at the WG website, where potential franchisees can find information on how to contact the company about franchising opportunities. After a franchisee is set up, WG lends ongoing support with marketing and strategic planning. Miri knows that this type of support is important for franchisees, particularly when they are starting out. He wants franchisees to be able to build their business once they’ve joined the company. “With WG, because franchisees have such large territories, they need help beyond just getting started. They need help growing the business and growing the brand into something that’s profitable for them,” he said. Aside from the support from the company, franchisees are backed by a solid brand reputation, with WG having won numerous awards since its inception, including recognition from the Austin Business Journal, Entrepreneur Startups Magazine, the American Society of Interior Design and the American Moving and Storage Association. So, with the help of the white glove treatment that WG Storage and Delivery provides its clients, the company is well on its way to changing people’s perception of what a moving company can offer - gloves and all. For more information visit: www.whiteglovedelivery.com
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cov er sto ry by Rob S w ystun
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pro fi l e by Rob S w ystun
C olor s on Pa rade
Colors on Parade Brings the Body Shop to the Customer
For franchisees who like to be on the go, Colors on Parade offers an opportunity to own a business and never have to set foot in an office. Jeff Cox, president and CEO of Colors on Parade, estimates that the business is about 98 percent mobile franchisees. “We have a few fixed locations, but for the most part our guys are in mobile vans, trucks and trailers,” Cox said during an interview from the business’ headquarters in Myrtle Beach, SC. Established in 1988, Colors on Parade’s main service is to quickly and conveniently do minor surface repairs to vehicles. The real selling point of Colors is that the company comes to you instead of you having to take your vehicle into a body shop. This is great for car dealerships and fleet owners who don’t want their vehicles spending a long time at a body shop. With Colors, the company shows up and within a couple of hours, a repair can be completed vs having a vehicle spend an entire day or more in a body shop. “We were trying to improve upon the convenience associated with body shops and the time that it costs the customer when cars are unavailable,” Cox said. “So, going to the customer gives us the fastest turnaround for the customer.” On top of that, Colors strives to minimize the area of the vehicle that they work on, Cox pointed out. Whereas in a body shop, a scratch on a bumper would likely mean taking the entire bumper off and replacing
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it, Colors on Parade will just work around the area of the minor damage. Most of Colors’ work revolves around those dings and scratches that accumulate over time rather than damage done from a major accident, Although most of Colors on Parade’s work comes from the aforementioned dealerships and fleets, the company is growing in the direct-to-consumer market, too, with about seven percent of sales coming from that market.
Franchising The company started franchising in 1991, said Cox, who has been with Colors since 1996. It has about 230 franchisees operating 280 mobile units. The vast majority of them are one person operating a single mobile unit, Cox explained, but some choose to start their own little fleet and hire employees to operate other mobile units, which they manage, often while still running one of the mobile units themselves. Some Colors franchisees opt to open a retail outlet, Cox noted, but they are not obligated to. The company currently operates in 25 states, concentrated mostly in the south and northeast with operations in Chicago and Detroit. The most popular way for potential franchisees to get involved is to do an apprenticeship with an existing franchisee. This way, they can get a few weeks of onthe-job training and then take a three-day certification course in Myrtle Beach and basically start immediately afterward. “They’re able to get back and start their business pretty quickly,” Cox said.
Jeff Cox
The alternative is for a potential franchisee to come to Myrtle Beach and do two weeks of training, followed by another few days of training in their area with one of Colors on Parade’s Area Developers. Franchisees can be trained in one of three areas, Cox said, those being: paint repair, paintless dent repair or interior repair. The operator franchise fee is $5,000 and the equipment costs around $13,500. Franchisees supply their own vehicle, which is usually a cargo van, but can be a truck and trailer in more rural settings. The company has an arrangement with Ford Motor Credit Company for franchisees to buy the equipment and vehicles — which can be used as long as they look presentable — as a package. A franchisee does not need any automotive experience, Cox said, but should be physically fit and be prepared to work in the elements. Oh, and they should also like being on the move. For more information visit: www.colorsonparade.com
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ex per t advice
Michelle Joseph, Founder and CEO, PeopleFoundry Inc
Why Tech Startups Fail Tech Startups are the brainchildren of eccentrics and savants. The ideas coming from some of these companies can be revolutionary and the people behind them have a uniquely particular skillset. Franchising USA
Due to their vast marketplace potential for some, investors are willing to infuse a lot of money to finance them. According to The National Venture Capital Association, 25-30 percent of venture-backed businesses fail. “The beginning years of a new business can be perilous in all industries,” says Michelle Joseph, Founder and CEO of PeopleFoundry. “However, these problems are exaggerated tenfold in tech startups, since large investments in the concept are made prior to businesses having a chance to develop their infrastructure.”
As a Talent Acquisition Expert who thrives in the tech industry, Michelle offers insight into many of the reasons that a tech startup will fail and expands on the relevance of each for success.
C-Level Leadership While a great idea can get funding, it is what follows funding that is essential to a company’s long-term health. For tech startups, identifying and hiring the correct C-Level Executives in the early stages of a company’s existence can prove difficult since being the best programmer does not necessarily lend to being the right choice
“Finding the right people to carry the company culture can seem a daunting task.” for CTO (Chief Technical Officer). A tech company’s youth and backgrounds in engineering and computer science (which are sparse in cultivating business proficiency), create special challenges in forming proper leadership throughout. A lack of leadership is an obvious hindrance to growth, and even when a company does begin to grow at a steady rate, it is essential to have managers that can guide their team through rocky waters. In an industry that is growing and evolving at a faster pace than most, strong leadership is more crucial in tech startups than any other field. As a partner to a strong infrastructure, having the people in place to successfully navigate constant change is key to success.
Culture Directly stemming from the quality of leadership is the culture that becomes so quickly ingrained within a company. Identifying leaders that practice and drive a culture to set the stage is imperative. The alternative is promoting a false façade that ultimately becomes a costly mistake. Especially if people buy into a vision and realize it is not what the company exhibits. While tech startups are known for their unique work environment, leaving a company’s culture up for interpretation can lead to inconsistencies within the brand. Just because a work environment is unique and different, does not mean it has to be undefined. Culture is very difficult to reverse. By making a concerted effort to drive this favorably from the beginning, tech firms can save themselves much hardship down the line.
Sales Team Business development is the lifeblood of any company. While many tech companies
have ideas that would fulfill a want or need of the public, it is often difficult for the innovators to translate this into a language that their consumer will appreciate and ultimately, purchase. A company cannot afford to overwhelm or intimidate consumers and interested businesses with industry jargon that will be commonplace to the creators of a product. The personability that sales requires is impossible to fake. Having the right personnel in place to create and develop interpersonal relationships can make or break a product’s success. Successful salespeople will be able to learn the essential aspects of the company’s product and bridge the gap to the consumer effectively. Whenever sales fall by the wayside in a tech startup’s infrastructure, failure will soon follow.
Congruent Team Growth Team growth that progresses at a similar pace as company success may prove to be the most difficult aspect for any company to accomplish. With the rapidly evolving nature of the tech industry, it becomes even more formidable to determine when the right time to expand the workforce truly is. While some tech startups will fall behind by not hiring enough new employees to meet demand, many more actually hire too quickly for their own good. By filling too many jobs too soon in the process, a company’s costs will increase too immensely to be covered by their revenues. Aligning the hiring process with actual revenue stream and not relying on projections and hopeful expectations will keep the company trending in the right direction. This proves more difficult for tech firms because of the fact that they often sell a concept more so than a
Michelle Joseph
product. However, to avoid putting the cart before the horse, successful firms will maintain a constant funnel of qualified candidates in a queue while only hiring when it is necessary.
About Michelle Joseph: Michelle is the Founder and CEO of PeopleFoundry Inc. She is an expert in Human Resources and talent acquisition. Michelle works with Chicago growth companies to build top-tier teams by forming partnerships to find the best people the businesses seek. Michelle has a strong voice in the local tech space, regularly speaking at engagements and presentations at 1871. Learn more about Michelle in an interview with Bootstrapping America on youtube.
About PeopleFoundry: PeopleFoundry’s recruitment process is unparalleled. Their dedication to understanding clients’ unique needs allows PeopleFoundry to actively work with the best candidates to help build a winning team. From sales to technology to everything in between, PeopleFoundry carefully matches talented professionals to the priorities and core values of each client. PeopleFoundry is not your typical suit and tie. For more information please visit: www.peoplefoundry.com
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ex per t advice
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focus
Tr u Blue
Be Successful & Make a Real Difference “We want to give people back their weekends!” proclaimed Mark Cottle, COO of TruBlue Total Home Care. TruBlue offers a concierge-like service model for home owners. Seniors and busy
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home owners that would like to maximize their free time can rely on TruBlue’s roster of tradespeople and project coordinators to tackle seemingly any job or chore in the household including cleaning, repairs, maintenance and landscaping. The revenue model is based on either a one-time service or a repeat maintenance contract. Homeowners can leverage TruBlue as one point of contact instead of a separate
contact for an electrician, plumber,
cleaner, carpenter etc. Revenue streams are rounded out by targeting homeowners with vacation or rental properties, banks with
vacant or foreclosures and/or commercial building and property.
The home improvement market in the U.S. alone is a $100B industry. The trend in
home ownership to downsize and stay in
“There is a lot of blue sky above TruBlue. It is a young, growing company that is positioning itself to tap into big markets.” one’s home longer was firmly established in late 2008 as a result of the economic crisis. The trend has continued through 2014 as families and seniors are opting instead to maximize the value of their home through renovations or cosmetic upgrades instead of listing the property and risking their investment on an unpredictable market. Embedded in this market is the seniors with huge buying power, possessing approximately threequarters of the nation’s wealth and an annual disposable income of $1 trillion. With 100M baby boomers and their parents in the U.S. alone, all will need some sort of home care in the years to come. TruBlue is positioned as a sister brand to four other franchises, managed by a larger group called Strategic Franchise Systems. TruBlue currently has a franchise base of 15 locations in the U.S., ranging from Florida to Denver to New York City. “We have an aggressive growth plan to double our footprint every year,” comments Mr. Cottle. The self-proclaimed ‘numbers guy’ believes that the growth trajectory is as much based in the quantification as qualification. “Leaders for our organization are those who fundamentally want to simplify the lives of others; we can then help train those individuals in the technical skills and business acumen.” Franchisees attend a comprehensive five day training session at Strategic Franchise Systems’ headquarters in Cincinnati, OH. Franchisees focus on the fundamentals of system management from marketing and office administration to accounting and HR. To ensure all franchisees start on the right foot, a dedicated business coach helps ramp up the business. Continuous
training is delivered in the form of themed annual conventions, quarterly regional events, regular conference calls, online courses and franchisee shared knowledge. “We want our franchisees to talk to each other and share best practices so we facilitate that as much as possible,” says Mark. “Be in business for yourself but not by yourself.” For the prospective franchise owner the barriers to entry are low. The minimum investment required is $31K in liquid assets with a guarantee of a protected area of 175,000 residents and additional territory can be purchased at a discount. Strategic Franchise Systems provides financing options through partner organizations. 24/7 call center support allows customers the flexibility to schedule maintenance work at any time while proprietary software facilitates web based quoting. TruBlue has opted not to sub-contract trades work; instead TruBlue has decided to hire all of its tradespeople as full time staff. Our consolidated service model negates the ebbs and flows of any one maintenance avenue. “As a tradesperson you can focus on your trade and let TruBlue focus on the business development, billing and after sales service,” says Mark. TruBlue’s marketing arm provides collateral including logos, templates, layouts, apparel and preprinted material. Crucial to the value proposition is discovering the right service mix for a given geographical area and cultivating the right tradespeople. There is a lot of blue sky above TruBlue. It is a young, growing company that is positioning itself to tap into big markets.
The three year old company is full of energy and the new leadership and direction has attracted top talent like Mark Cottle. For Mark’s part as COO he is staged to build on the fundamentals and grow the company to its potential. Mark is definitely up for the challenge and has 10 years of franchising experience to back him up. As the former Director of Operations of N-Hance Wood Renewal and Manager of Devere (Chem-Dry) International, Mark ran a network of 1,700 franchises in 45 countries. His mission is to better clarify the business model, focus on metrics that matter, and maximizing growth and learning opportunities across the network. TruBlue is a young brand looking for growth orientated individuals who can help catapult a regional name into a national brand. For more information visit: www.trubluehousecare.com/franchise
Franchising USA
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ex per t advice
Andy Roe, General Manager, SurePayroll, Inc.
LEtting go: Run
Franchise Means No Doing Things On Your The type of person who is going to open a franchise is more than likely going to be someone with an entrepreneurial spirit. Like starting any business, getting into the franchise game can be a risky and expensive proposition, with the promise of opportunity on the other end. However, with many franchises, there’s a key difference between a small business owner with complete control over his or her business, and the franchise owner, who may have to be implementing and executing a business model and a brand bigger than oneself. Think about some of some of the top franchises – Subway, Pizza Hut, Dunkin’ Donuts, 7-Eleven – and what makes them successful. It’s a combination of product, brand and efficiency of service. While the average franchise owner, no doubt, has great experience to offer in terms of managing a franchise, and new ideas that could energize the business, running a franchise is also a great lesson in letting go.
Franchising USA
“A mix of entrepreneurial spirit and yielding to a larger organizational structure can make for a successful business endeavor.”
nning a ot Always r Terms Why Letting Go is Good for Business Small business owners are often meticulous about every detail – they know how the business runs from top to bottom. Their knowledge and attention to detail help make them a good leader. The other part of leadership, though, is freeing yourself of the minutia and managing the big picture. Allowing your employees to take on more autonomy, outsourcing where appropriate, looking to the future, while the system works continuously and seamlessly. In a franchise scenario, an owner is taking the qualities that make the franchise successful – the things that drew him or her to invest in the first place – and executing them to perfection.
3 Things You Can’t Change, But You Can Work on Perfecting 1. The colors and shapes and signage that we associate with successful franchises are a big part of their appeal. We associate these things with that cup of coffee or a particular sandwich. It’s not just the pizza we’re drawn to, it’s the box it comes in. Something about it just feels right. So obviously the branding is not going to change when you take over a franchise, unless it’s a failing franchise. Franchise owners that better understand their franchise’s brand and how it impacts customers will be more successful in
supporting that brand with service, friendliness, cleanliness and whatever else makes it shine. 2. The process of delivery is also a big part of a franchise. Some places we go to for the speed, others for the experience. One franchise may serve up sandwiches in minutes, others are designed for us to pop open the laptop and stay awhile. Franchise owners can’t try to change fast food into fine dining. They can’t turn a business that caters to high-end professionals into a business casual environment. Instead, they’re making sure the business runs the way it’s supposed to, and customers are getting what they expect. 3. The culture of a franchise is also a big part of how it serves its demographic. Some franchises are going to blast rock music all day, others are going to be quiet and serene. Franchise owners have to fit into that culture. They’re not going to turn off the rock music and play classical, even if that’s their personal taste. Before buying a franchise, it’s important to understand the culture and make sure it’s a fit.
What You Can Change This will vary from franchise to franchise, so it’s important to understand how the larger company works with its franchisees. A new franchise owner is likely going to see things that can be improved and many franchises will be responsive to
Andy Roe
those ideas – be it pricing strategies, areas of the business they can outsource, better vendors, or more efficient workflow processes. Some things are universal, too. The way a franchise owner treats employees, maintains the quality of the product and is responsive to customers’ needs is going to be important everywhere. This is where the qualities of a good leader can have a significant impact. A mix of entrepreneurial spirit and yielding to a larger organizational structure can make for a successful business endeavor. Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company. SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with1-10 employees. You can follow Andy on Twitter @AndrewSRoe.
Franchising USA
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N estlé Toll H ouse Café
the desserts are a delicious bonus! Franchisee Jason Piltzmaker talks Nestlé Toll House Café by Chip
Franchising USA
A fresh cup of coffee and baked gourmet cookies weren’t the only enticements luring Jason Piltzmaker to become a franchise partner with Nestlé Toll House Café by Chip. He was equally attracted to the decades of goodwill tied to one of the most powerful and beloved brand names in the world.
“It’s a wonderful concept. It offers the best of everything, from fresh-baked treats to an outstanding coffee program.” It offers the best of everything, from fresh-baked treats to an outstanding coffee program. We have ice cream, smoothies, crepes, paninis and hand-decorated cookie cakes that are perfect for any occasion. It’s a one-stop shop for all kinds of delicious goodies.” The chain locates most of their cafés in malls and benefits greatly from impulse buying decisions. The storefront and brand name bring the people in and the fresh-baked aroma of the products can prove irresistible to customers of all ages. Street locations are also popular in a more traditional café, sit-down type environment. “Our confections are very popular with the kids, as well as their moms and dads. And we have so much variety, everybody can get what he or she wants,” Jason explained. “If mom is looking for a fresh fruit smoothie, dad wants a cup of coffee and the kiddos are craving ice cream or cookies, we are your shop.”
Jason explained that his café is an experience that appeals to virtually everyone. “There’s not a better brand out there,” said Jason. “People walk by our storefront and see that familiar Nestlé logo and it strikes a chord with them. It brings back memories of grandma or mom baking cookies in her oven, and that emotional connection can be very strong. Virtually everyone in North America can relate to it.” Co-founders Ziad Dalal and Doyle Liesenfelt opened their first Nestlé Toll House Café in August 2000 in Frisco, Texas. Jason opened his first café that
December in Houston. “The franchisor secured a great location in my market,” Jason said. “They knew I had a successful track record in the cookie segment so they reached out and asked if I had any interest in the location. I said ‘This is what I’ve been training for my whole life, sign me up!’ Nearly 14 years later, we’re still going strong.” Jason had worked for a competitor for nearly 18 years and left because the franchise concept no longer fulfilled his professional goals. “So when the Nestlé Toll House Café opportunity came about, we attacked it,” he continued. “It’s a wonderful concept.
Among the bakery café’s most popular products are their chocolate chip cookie cakes. Available only in the café, they come in a range of sizes and delicious designs, all customized and ready in 30 minutes or less. Guests may also order customized ice cream sandwiches, which are made on the spot with the guest’s choice of ice cream and cookies. The chain also recently introduced madeto-order crepes, both savory and sweet, for breakfast and Panini sandwiches for lunch, to capture additional day-part sales. “You have to come by and see our storefront and experience the excitement behind the counter,” said Jason.
A Successful Model Ideally, franchise candidates should be prepared to be intimately involved in the day-to-day operations of the business. Not necessarily behind the counter selling cookies, but the owner needs to have a
Franchising USA
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N estlé Toll H ouse Café
great amount of input and mentorship with his or her staff and should be consistently involved. “The more involved the owner, the better their chances of being very successful,” Jason continued. “I’m an Area Developer for our market here, and one of our franchisees is a schoolteacher and she does quite well. We also have an engineer with no real background in the restaurant business and he, too, is experiencing success. Each franchisee has their unique challenges; but with this concept, it’s pretty easy to immerse yourself in our brand and be successful in it.” “A new owner should exude compassion, involvement and patience. With a good location, great service and a hardworking staff, it’s a winning formula,” he continued.
Franchise Award Process The process begins with an online application. Once it is reviewed, a phone call is scheduled to share the discovery steps of Nestlé Toll House Café. A Franchise Disclosure Document is then sent and the potential franchisee is invited to participate in additional learning opportunities.
Franchising USA
“People walk by our storefront and see that familiar Nestlé logo and it strikes a chord with them.” The candidate is then expected to review several franchise documents and conduct his or her own research on the operation. Once mutual comfort level and qualifications are established, the prospective franchisee may be invited to the Richardson, Texas, headquarters for a personalized discovery day, which involves meeting each of the company’s department heads and learning the principles of the organization. A tour of multiple cafés in the DFW market rounds out their visit. The discovery day is the concluding learning event, and assuming both parties remain interested in moving forward, a franchisee review committee then makes its decision to award a license to the prospective candidate. Training is scheduled within 60 days prior to opening after real estate is secured. The owner and a store manager or other key team members will be involved in the formal training, during which the fundamentals and processes of the entire operation are taught in great detail. Securing real estate is often the most timeintensive aspect of getting started. Once a
site is confirmed, grand opening usually follows within three to four months. After the real estate and construction processes are complete and the store opens, on-going support is provided for the life of the business – whenever necessary to keep the franchise partner pointed towards success. Franchise Service Consultants are available for guidance throughout the opening process to assist with employee training and café operations. They are on-site and available immediately after the grand opening as well. Nestlé Toll House Café is currently seeking candidates to become café owners throughout most of the U.S. and Canada. There are a variety of café models available, including kiosks, in-line mall and street café locations. More than 130 cafés are currently open. The chain has been recognized by Entrepreneur magazine’s “Franchise 500” for the last nine consecutive years through 2014. For more information visit: www.nestlecafefranchise.com
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Easy store communication/collaboration - Relay tasks - Establish projects - Announcements - Meetings All on your initial login page for easy visibility Franchising USA
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
Taking You Franchise Dream Mob Mobile is not just for phones, it could also be how you pursue your dreams of independence, control, freedom and financial autonomy. There is no requirement that a successful business has to be based in a retail site. There are many different approaches for providing services, goods and even food via mobile operations. The key is knowing what you want, what fits your skills and working preferences as well as what your goals are. Let’s assume you have built a solid model outlining the parameters of your perfect business. If you don’t know how to do that, feel free to contact me and I will walk you through it. Use that model as the first check of any concept you screen. After that you would be best served
Franchising USA
setting preconceptions aside and focusing on building a good knowledge base on a number of companies.
Interesting aspects of Mobile franchises: • Most mobile franchises have a lower cost of start-up and operations than what we might see in a traditional brick and mortar business. The cost of a vehicle is less than the cost of a lease and build out of a retail location. Most don’t carry the same staffing levels or overheads. • Speed to market is another big benefit mobile franchises take advantage of. Leasing a van or truck, wrapping it in a graphic package and loading it with tools, materials and samples can happen very quickly. • Don’t wait for your customer to come to you, fire up that engine and go to them. In a mobile franchise you often have a protected territory with identifiable
customers. If you don’t have a busy day you can supplement your marketing plan by going out to network or sell into new revenue. • Variety in your day may be very different outside the box. You will be out and involved in your community, meeting new people, expanding existing relationships and seeing new things. Sunscreen in the summer and a jacket in the winter may be more called for than maybe the khakis and polo shirt in a retail setting. One of the really interesting sides of mobile franchising is the evolution the business model has taken. In years past it would have been most common that this type of business model would have been an owner operator, a man in a van/truck. Growth in that owner operator model may have been limited by the number of hours or the volume of customers that the man in the van could service.
“The key is knowing what you want, what fits your skills and working preferences as well as what your goals are.”
ur e obile Today, though, we see an expanded range of offerings. While the owner operator role still exists (and can be a great fit for some candidates) there are also executive and more absentee roles using the same mobile model. More and more we are seeing franchisors in these systems creating business models catering to corporate executives and existing business owners that want to build multi vehicle fleets to service consumers or businesses. These newer generations of mobile franchise owners are aiming to build large businesses where they are not the daily providers of services or goods. They are more likely to work out of a central office where their teams will come into the office and be dispatched to the day’s work. Stepping out of the van gives these owners more flexibility and freedom to spend time with their families. With this growth option, that owner operator may be now able to add new
mobile units and grow an executive business over time. This creates an interesting opportunity if mobile franchises are attractive to a new owner due to initial investment fund limitations. Starting small does not mean you are limited in terms of growth potential. You can work towards creating any outcome you can envision.
Unique considerations: • In this type of business you have to be self-motivated, there is no set location to report to every day and customers will not wander through the doors of your location in the local shopping center. While you may well have a robust marketing program there will be a component of growing your business that will be up to you going out and introducing yourself to prospective customers. • Not only will you be chief relationship builder, head of sales and team leader, you will also be the technician if you are in an owner operator role. Make sure you will be comfortable wearing all of those hats. This may require comfort with both white collar and blue collar roles. • As an owner operator you will be the cash flow stream, if you go on vacation or take a sick day then there may be no revenue that day(s). This may require that you plan ahead and bank cash for those times that you will not be generating revenue. • Lower barrier of entry for you may also mean lower barrier of entry for competitors. Look for barriers other than initial investment that could keep competitors at bay such as technology, marketing, National accounts, etc. • Territory based businesses sometimes grow over time by adding territory, at some point you may find that the
George Knauf
distance from one end of the territory to the other is as far as you want to drive and that may be the natural limitation for your growth in that brand. • In highly populated areas traffic may be a factor. I am not aware of any mobile franchises that make money when sitting in traffic. There is not a single unique consideration that would be likely to be a deal killer on its own, but they are important points to work into your evaluation process. They may help you pick one mobile brand over another. Looking for a cost effective way to start a business or just a role with variety and not being stuck in the office or retail store every day? Mobile franchising may be just the ticket and could offer a long term growth plan. There are some great options out there that get you out and involved in your community! Mr. Knauf is a highly sought after, trusted advisor to many companies; Public, Independent and Franchised, of all sizes and in many markets. His 20 plus years of experience in both startup and mature business operations makes him uniquely qualified to advise individuals that have dreamed of going into business for themselves in order to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution. For more information visit: www.georgeknauf.com
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Fr anchisOR I N DEP T H by Gina Gill
X presso Delig ht
A WINNING FRANCHISE Stepping out of the office for a great cup of coffee can be the only moment that makes or breaks a workday. Xpresso Delight offers a café experience within the confines of the break room and does all the work for you in a matter of seconds. Fully automatic espresso coffee systems are supplied free to businesses, as well as Xpresso Delight’s exclusive 100 percent Arabica coffee blend, cups, sugar and supplies - everything you need to make a café quality coffee. The systems not only provide coffee but also espresso, latte, cappuccino, macchiato and hot chocolate. Every cup grinds fresh beans and heats up milk to create café quality froth. Unlimited options, an office could only once achieve by leaving the building, are now available in the comforts of the cubicle. The machine is provided for free and companies pay on a per cup basis. The counter records when the button is pressed and it gets checked at each weekly service and the company is invoiced accordingly.
Franchising USA
“The machine is easy to use and was well researched to ensure the process was efficient and effortless with exceptional convenience.” It’s like having a personal barista at the press of a button. “Everyone spends so much money on coffee, you may drink more if you had one of these machines, but not spend more,” said franchisor Nigell Lee. Xpresso Delight keeps a company’s staff productive, available and satisfied. Employees stay in the business and remain focused on their job. “What we really want our customers to do is enjoy their in-office coffee experience while they are doing what they do best, which is their work,” assures Nigell. Clients are not locked into contracts, which are usually secured through a taste test - a FREE week of coffee is offered to businesses so they can trial the system. If they do not like the machine, they can stop
using it without any obligations. Xpresso Delight originated in 2003 in Australia and New Zealand and began franchising a year later. There are now over two hundred franchises internationally. Nigell came to New York in 2013 to test the market and install coffee machines. He wanted to receive some feedback and see if it would work. “We had such an astounding response. In one of our early surveys for a company we got 9.7 out of 10 for taste, 9.8 out of 10 for how easy the machine is to use and that was an accounting firm with over 300 employees,” explained Nigell. “It was a really good survey. So in early 2014 we started selling franchises in the U.S. We just sold our second franchise in the Philadelphia market and we are going
through that process with numerous other candidates to start in other locations also.” Franchises are currently for sale in Pennsylvania, Philadelphia, New Jersey, New York City, Long Island and Connecticut. Xpresso Delight is seeking area representatives all over the country in every state and their role is to develop their own exclusive territory while training and supporting new and existing franchisees. Franchises cannot be sold without an area representative because local support is needed. “We are a pretty easy business to operate. We have over ten years of operations, support and training systems experience everything is basically set up,” explained Nigell. “A candidate does not necessarily need experience. If they are able to follow our systems they have a great chance of being successful. If they love coffee, that is a bonus.”
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Schlot X presso zskDelig y ’s ht
will replace it same day free of charge,” explained Nigell. The machine is easy to use and was well researched to ensure the process was efficient and effortless with exceptional convenience. When our franchisees come into the network they get two days of official training and are then put through a three-week marketing and installation program. This program is put in place to get franchisees up and running and create momentum as soon as possible.
“Every cup grinds fresh beans and heats up milk to create café quality froth.” The biggest demographic of franchisees so far has been mothers. Mostly women who have been home with their children for a fair amount of time and want to get back into the workforce but need a flexible schedule. “It gives them the ability to do what they need to do as a mom but still obviously run a business and earn a good income,” said Nigell. “With that flexibility, we do appeal to most demographics. It was designed to be a lifestyle business and a home-based business, so anyone could do it without having any employees and it can fit around their routine.” Franchisees simply go to a location where a machine has been installed once a week to record coffees consumed each week, provide supplies and clean the coffee machine which will take them approximately 30 minutes. Franchisees start with five coffee systems and work approximately five hours per week in total, outside of a small amount of marketing and networking. Nigell said this is a new and growing market in the U.S. Although the coffee
Franchising USA
market within the country is mature, the office espresso coffee market is not. “Where we are in the U.S., is where Australia was in 2003 to 2004. There is a big coffee market but most people don’t understand that they can have fresh bean, fresh milk, lattes, cappuccinos and espressos all in the office,” said Nigell. “We believe we are unique and it is an educational process but once they taste our coffee and see how easy it is to use, then bundle it up with a complete package, people get it straight away.”
“Our system is not based around direct sales such as telemarketing. We see our business as a networking and relationship business,” said Nigell. “We try to get franchisees creating relationships as soon as possible.” Area representatives supply as much local support as is required. These representatives also hold spare coffee machines to ensure the replacement guarantee. “We want to make sure they are as successful as they can be because we see franchising as a win-win situation - if franchisees are winning, Xpresso Delight is winning,” said Nigell. For more information contact Nigell Lee at: P: 646.435.5968 W: www.xpressodelight.com
Currently there is no real competition within the country comparable to Xpresso Delight. Unlike the Kereg and Tasimo systems, this system is a high quality machine valued at $7,000 offered for free. “You can go out and buy or lease these coffee machines but we offer a risk free opportunity for businesses. There are no up front costs, no contracts and best of all we supply everything for free, including all consumables, weekly maintenance as well as a same day replacement guarantee which means if anything was to ever go wrong with one of our systems we
Nigell Lee
ex per t advice
Adam Heitzman, Co-founder & Managing Partner at HigherVisibility
8toBest Blogs Follow about Franchising
It’s no secret that the more you can read and research about franchise ownership and managing a franchise, the better. For most, this typically starts with a specific Google search and then reading a few articles on a topic that interests them. While this is a great place to start, reading blogs is something that many hopeful franchisees are still missing. The best thing about reading blogs is the idea that you can come across topics and questions
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that you may never have thought to ask in the first place. Blogs will oftentimes pull content from different publications, feature interviews and talk with a variety of experts, feature different writers to give you a new perspective, and include different media types like infographics and video into the blog. Blogs are a great place to discover something different as opposed to researching something specific.
Top 8 Franchise Blogs You Should be Reading It’s worth mentioning that although blogs are great, they’re not all great. There are quite a few different blogs out there, which can get overwhelming, so you have to make sure you’re reading the right ones. The biggest thing to remember is to always
make sure the blog is publishing content frequently so you’re not reading outdated information. Below lists the top 8 franchise blogs on the web today that won’t steer you wrong:
1. The Franchise King This blog has been at it for a while and is primarily written be the self-proclaimed Franchise King himself, Joel Libava. He has extensive knowledge on franchise ownership and has written books and Ebooks on the subject. His blog is considered one of the most authoritative blogs in the industry because he publishes fresh content based on past experiences. He really puts his own spin and his own opinions into his articles, so when you read this blog you’re not simply reading
“You can come across topics and questions that you may never have thought to ask in the first place.” different topics. Those managing the blog and the company Expansion Experts have 20+ years of experience and bring this experience into their writing.
4. Franchising.com This website is actually very similar to Franchising USA Magazine in the sense that it seems to have it all. It has an abundance of different categories to choose from—Franchise Law, News, Videos, Resources, Multi-Unit Franchisees Information, etc.—all with an easy to navigate layout. Whether you’re a franchise owner or just looking to learn more, this is one of the best. Publications with Franchise Blogs as a Subsection
5. Allbusiness.com Franchise Blog
about the facts—you’re getting actual opinions from someone who’s been there before.
2. Franchise Chatter Here you’ll find stories and analysis on current franchises. You can read about their stories and what they are doing right and wrong, so this is a good place to keep up with the franchise community and industry news. You’ll find interviews and other expert advice here, and this blog is probably one of the blogs that puts out the most content the most frequently, with something new every other day.
3. Expansion Experts This blog doesn’t publish content quite as frequently as the others, but you will see a few posts per month on a variety of
This is a huge publication that covers everything from finance to staffing and HR to technology. In other words, franchise management is just one section of the website. Nonetheless, the Franchise Blog currently has over 900 related articles and is updated every few days with something new. What’s especially cool about this blog is that you have a lot of content filter options including filtering by type of content, by topic, by industry, and by date.
6. Entrepreneur Franchise Blog Much like the AllBusiness blog, this particular site does not focus on only franchise topics. Nonetheless, Entrepreneur is considered one of the top websites out there, so their section on franchise topics is high quality. They have sections that will split up franchises into the fastest growing, low cost franchises, top new franchises, etc. to help you make an informed decision if you’re looking
Adam Heitzman
for an opportunity, along with different categories for you to search. Of course, all of this is followed by a set of articles of all different types and from all different voices.
7. Inc. Franchise Blog The franchise section of Inc. really has the look and feel of a blog. In other words, the page is full of engaging photos and nothing but content. The headlines jump out at you and are creative the same way that a blog would be (as opposed to something more serious, like Entrepreneur), and the content varies from topics like deciding what type of franchise to own to thinking about legal issues. And of course…
8. Franchising USA Magazine I can’t let this article come to an end without mentioning Franchising USA Magazine. They have great content on here that works like a blog, so I highly recommend checking out other sections frequently to see what’s new in the industry. I find this website to be one of the most organized out there, so it’s easy to read. Adam Heitzman is the Co-Founder and Managing Partner at HigherVisibility, a nationally recognized SEO firm that offers a full range of Internet marketing services. For more information visit: www.highervisibility.com
Franchising USA
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H av e You r Say by Rob S w ystu n
Cel l ai r is
Cellairis - a franchise Cellairis’ success comes from knowing that people love to make everything — including their phones and tablets — look unique. In business for 14 years, the mobile device accessory retailer and repair shop has been franchising for all but one of those years. Its franchising family, which started off slowly, now numbers approximately 700 stores, kiosks and carts, mainly located in shopping malls, plus several standalone stores. Many of the stores also provide repairs for mobile devices. “Most of the company’s 200 franchisees within the continental U.S. have multiple units, which sell cases and accessories for the most popular brands and models of mobile devices,” Jim Thornton, Vice-President of Cellairis Franchise Operations said in an interview from the company’s headquarters in Atlanta recently. “While it would be impossible to fix every single device, Cellairis can repair about 90 percent of the phones people have,” he said. In addition to locations throughout most of the United States, Cellairis has operations in the Middle East, the United Kingdom, Mexico, Canada, Chile and Jamaica. Thornton, who has experience as a franchising manager at 7-Eleven, Blockbuster and Papa John’s Pizza, said the most important quality that he looks for in a potential franchisee is that they like people. Because most of Cellairis’ business is mall based, he explained, franchisees have a relatively short amount of time to interact with customers and establish a rapport with them.
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In addition to liking people, franchisees should be technically savvy and have an interest in keeping up with the latest in mobile technologies. “Cellairis franchisees are all ages,” Thornton said, “and represent a good cross section of the population.” The company is constantly looking to expand its footprint, the VP of Franchising added. “As new malls go up, as they are developed, as they are built, we are always cognizant of what’s happening and making sure our presence is in the best locations,” Thornton said. “And the demand for mobile accessories continues to grow. More and more people either have a smartphone or tablet or are in a position to get one, and they all want to protect their devices and individualize them. Mobile device accessories have become almost mandatory for people nowadays,” Thornton said. “It is an extension of personality and, in many cases, it is an extension of how you accessorize your person,” he noted. “On the other side, the repair component of the business is increasingly necessary,” Thornton said, “because people are handing their phones and other devices down to younger generations in the family and often those phones need a new screen or will have some water damage that needs to be repaired. People in general are becoming more aware of the convenience of having their phones repaired rather than replacing them when they get damaged.” “What makes Cellairis different from its competition,” Thornton said, “is that Cellairis develops its own branded products so the company doesn’t have to rely on purchasing products from outside vendors. The Cellairis brand represents quality that’s cutting edge,” he said, “and customers know it will be around for a
long time, which provides comfort to them.
Training and Support New franchisees are required to come to Atlanta where they go through Cellairis’ training regimen. That includes a full week of classroom and practical training. They then take over their unit and receive continual training through webinars and videos and through a field team that visits franchisees and helps with merchandising, sales techniques and purchasing. The field team offers advice, direction and best practices to help grow the business. “Because everything is constantly changing in the world of electronic devices,” Thornton said, “it’s important to stay attuned to what’s developing in the marketplace and provide what is current.” “This organization is nimble in a space where you need to be nimble,” he pointed out. With about 58 corporate stores to its name, the company is continuing to expand both domestically and internationally and Thornton sees international expansion as a real growth opportunity. As long as people keep buying mobile devices and keep wanting to protect and customize them, Cellairis will continue to have a strong market base. For more information visit: www.cellairis.com
e family
“Mobile device accessories have become almost mandatory for people nowadays. It is an extension of personality and, in many cases, it is an extension of how you accessorize your person.� Franchising USA
H av e You r Say by Rob S w ystun
Page 33
SPORTS A N D FI T N ESS fe at u r e
Featu re
Mobile Franchising
e r u t fea
Rob Swystun
Not every potential franchisee wants to be tied down to an office. What can these wanderers do if they want to buy a franchise?
“Mobile services cater to people with busy lives and an ever aging population who want services to come to them.” The answer is to buy a mobile franchise. There are plenty of services that lend themselves nicely to mobile franchising, where you go to the customer rather than the customer coming to you. In addition to often having low startup fees, mobile franchises allow you to work the hours you choose and work close to home, plus they don’t typically require the hiring of many employees and don’t require the purchase or lease of any real estate. Being your own employer also allows you to work in a (relatively) stressfree environment. And don’t forget those tax benefits that you may be entitled to by running your own business. You may be eligible for substantial deductions on your telephone,
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rent, car payments, electricity, water rates and loan repayments. So, make sure you talk to your accountant about how to set up your business in the most cost effective manner.
The Need Mobile services cater to people with busy lives and an ever aging population who want services to come to them. People are spending more and more time working, and leisure time has become a valuable commodity, one that people are willing to pay for by paying others to do the little mundane tasks. Why not cash in on this? One person’s quest for more free time is another person’s opportunity. Mobile franchises are often run out of vans or even cars and cover the full spectrum
of services. These highly flexible mobile franchises are so lucrative, in fact, that Express Mobile Services in Australia is completely built on franchisees investing as little as $6,000AU for a franchise in one of 26 different services, which include: several types of cleaning; dog washing; photography personal training and many others. Express claims that after the cost of materials, it is conceivable that a franchisee may earn anywhere from $44 – $150 per hour. Statistics for mobile franchises are hard to come by because they cover such a wide variety of services. So, let’s take a look at some of the most popular ones to get an idea of what a franchisee can expect when buying a mobile franchise.
Cleaning Based Mobile Franchises Home cleaning services, like the name suggests, go to people’s homes and clean them, often while they are away at work during the day. You either take all of your supplies with you to the home or use supplies that are there. After you clean a home, you move onto the next one. All you really need is a vehicle and a place to store supplies if necessary and you’re set. There are no building costs to worry about. And general home cleaning is just one of many different types of cleaning that people require that you can turn into a mobile franchise. Aside from general home cleaning, you can start a franchise to clean:
• pools, • offices, • carpets, • home exteriors, • air conditioners, • windows and solar panels, • barbecues, and • vehicles. In 2010, there were approximately 50,000 cleaning services operating in the United States, according to Franchise Help’s Cleaning Industry Analysis 2014, and they brought in about $36 billion of revenue. The cleaning services in the report ranged from trash pickup and floor polishing to window washing. It also said there were almost 825,000 workers in the cleaning industry in 2010 with about seven percent of them being self employed.
Pet Based Mobile Businesses The pet business is booming. And because it can sometimes be difficult to haul dogs and cats around, people often prefer pet washers and groomers to come to them. You can do this with a specially outfitted van that has all the tools you need to groom these animals. Some franchises will walk you through the whole process of starting a mobile pet grooming business, including helping you procure one of those grooming stations on wheels. IBISWorld’s Pet Grooming & Boarding market research report says the entire pet grooming and boarding industry is worth $5 billion and experienced annual growth of 4.8 percent from 2009-2014. If you don’t want to drive around in your own pet groomer mobile, pet sitting or dog walking might be a better option.
The good news is that with a steadily aging population in the States, there is rising demand for home cleaning services and the industry is expected to experience a five percent growth rate from 2008-2018. But, be aware that this industry is fiercely competitive because it’s relatively inexpensive to enter and doesn’t generally require specialized skills. This means just about anyone can buy a mobile home cleaning franchise. Revenue may be a bit on the low side as you have to price your services accordingly due to the high level of competition. Customer retention is also crucial in this particular mobile industry.
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SPORTS A N D FI T N ESS fe at u r e
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SPORTS A N D FI T N ESS fe at u r e
Featu re
“In addition to often having low startup fees, mobile franchises allow you to work the hours you choose and work close to home.” Neither of these businesses requires any equipment, meaning you can use your own vehicle for them. And, if you don’t mind doing some dirty work, you may consider a pet waste removal business.
which is faster than average for all occupations. Plus, between July 2012 and July 2013, about 35 million adult Americans (about 16 percent) had a massage at least once.
Health and Beauty Based Mobile Business
Those are pretty good numbers for an industry if you’re thinking about getting into it.
Personal trainers, mobile massage and mobile beauty treatments are lucrative mobile franchising opportunities. With people’s busy lives, they often want the gym and the spa to come to them. IBISWorld’s Personal Trainers market research report says this industry grew at a stable two percent from 2009 to 2014 and demand will pick up over the next five years as people will generally have more disposable income to spend on luxuries like this. The report also says that while demand is steady in this $10 billion industry, personal trainers will have to start offering value added services to stay competitive. That’s where making your personal training service mobile can really pay off. Whether you offer cardiorespiratory, strength, endurance, resistance training or something else entirely, your ability to come to them is a convenience that people are likely to appreciate. Similarly, people who enjoy a good massage may opt to go with a mobile masseuse over having to book an appointment somewhere. Numbers from the American Massage Therapy Association (AMTA) say that the industry was estimated to be worth $8 - $10 billion in 2013 and also had 300,000 to 350,000 massage therapists and massage school students in the US. The AMTA says according to the U.S. Department of Labor in 2012, employment for massage therapists is expected to increase 20 percent from 2010 to 2020,
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And, speaking of good numbers, the U.S. Bureau of Labor Statistics says mobile spa workers will see faster than average growth through 2016 and it projects job openings for nail technicians will grow by 28 percent through 2016 while jobs for estheticians and skin care specialists will grow the occupation by 34 percent due to the popularity of facials and getting an improved complexion.
services and regular inspections, the report says. People’s rebounding discretionary incomes will also create demand for these types of services, as consumers will spend on hotels and restaurants again, meaning these establishments will want to ensure they’re pest free.
Getting Started These are just a snippet of the many mobile franchise opportunities out there. As the economy continues to get better and people have more discretionary income they can put towards more luxury items, services that were once put on the back burner of many people’s lives are now becoming essential to them again.
Pest Control Based Business
To see the bevy of mobile franchise opportunities available to aspiring entrepreneurs, do an internet search for “mobile franchise.” Once you’ve seen the opportunities available, you can narrow it down to what you’re interested in, what would be a good fit for your skills and what would be the most lucrative opportunity for your particular area.
Creepy crawlies and those little flying vampires of summer, mosquitoes, may be the bane of many, but they can be a boon to you if you start a pest control business. Some specialize in one kind of pest, like the aforementioned mosquitoes, while others are more generalized. The nature of the business — ridding people’s property of pests — means it’s already a mobile business. If you don’t mind bugs or working with chemicals, it could be a good fit for you.
So, don’t get tied down to the idea that you have to lease a storefront to be a successful franchisee. You can be just as successful with a mobile franchise. Now get going!
The now infamous bed bug problem that has cropped up in the news repeatedly over the last several years is a nightmare for a lot of consumers and property owners, but the little monsters have been lucrative for the pest control industry, according to the IBISWorld’s Pest Control market research report. This $12 billion industry saw annual growth of 2.5 percent between 2009 and this year. That is likely to increase, as the housing market continues its recovery and will create a need for pretreatment termite
As with most things, the key is research, research, research. Know the market you want to get into and if there is a demand for the service you are interested in providing. From there, it’s just a matter of contacting the franchise you’re interested in buying and following their franchising process.
Look out for our next special feature:
Children’s Product and Services
Page 37
I began my journey with Sherpa Kids wanting to do something worthwhile in my community. I’m not a salesperson but I love talking to Principals and Governing Council members about Sherpa Kids.
Sherpa work andand engage with with all stakeholders to ensure SherpaKids Kidswill will work engage all stakeholders to continuous learning that meets children’s needs. We pride ensure continuous learning that meets children’s needs. We ourselves on creating a nurturing and caring environment for pride ourselves on creating a nurturing and caring environment the care of your school-aged children. We do this through a for the care of your school-aged children. We do this through a structured and well-balanced program in before, after school and structured well-balanced program in before, after school vacation careand services. and vacation care services. Become Become aa Sherpa SherpaKids KidsCountry CountryMaster MasterFranchisee Franchiseeand andmake makeanan investment on two levels. investment on two levels. Your Your new life life will will be be rewarding rewarding financially financiallyand andpersonally personallyasasyou you help communities and franchisees achieve their business help school school communities and franchisees achieve their and lifestyle goals. business and lifestyle goals. Each member Sherpa Franchise System Each member ofofthethe Sherpa KidsKids Franchise System has anhas an important role to play. important role to play. The success success every individual Franchise strengthens the The of of every individual Franchise strengthens the Sherpa Kids brand. A growing Franchise System means greater Sherpa Kids brand. A growing Franchise System means greater marketingand andadvertising advertising power, awareness, marketing power, moremore brand brand awareness, higher higher market penetration, new and improved systems, and market penetration, new and improved systems, and more team more team members to share knowledge, ideas and strategies. members to share knowledge, ideas and strategies.Already Already operating in 4– countries – Australia, operating in 4 countries Australia, New Zealand, New SouthZealand, Africa, South Africa, England and soon to be Ireland. England and coming soon to Ireland and Canada.
Enquire about international business opportunities with Sherpa Kids Phone Vicki Prout on +61 439 803 078 or email vicki@sherpa-kids.com www.sherpa-kids.com
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ex per t advice
Don Boroian, Chairman, Francorp
FRANCORP’S CHAIRMAN WEIGHS THE EFFECT OF A MINIMUM WAGE INCREASE
Don Boroian
Last week, protestors gathered at McDonald’s headquarters during McDonald’s Annual Meeting to draw attention to their goal… nearly 100 percent increase of the hourly wages paid to employees in McDonald’s restaurants. Aside from the fact that everyone wants to earn more money and a better economic life, the impact of an across the board increase, even short of this magnitude would have a major inflationary effect on the entire economy. The foodservice industry, and particularly the burger industry, is an extremely competitive industry, with hand-tohand combat over prices, coupons, and low margins. In Francorp’s work with hundreds of restaurant clients, we
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consistently see fluctuations and increases in prices of beef, chicken, potatoes, and sugar that are often absorbed to avoid pricing themselves too high over competition. Labor costs are monitored down to the tenth of a percent to control operating costs, in addition to the healthcare benefits provided. Altogether, it is an industry of extremely slim margins. Direct labor costs in restaurants average 15 percent of gross revenue. Doubling those costs would render a deathblow to the restaurant industry, unless passed on to consumers. An increase of the minimum wage on a national level will have a major domino, inflationary effect. Restaurants, retail, service businesses, and any businesses employing minimum wage employees will have to pass on these increases to the consumer. The companies that are manufacturing, producing, and distributing the goods sold to these companies will have to increase wages they pay their employees too. More companies will be forced to purchase more products outside the U.S. and to reduce their work forces to contain costs. Houses, cars, groceries will all cost more...everything will cost more and more people will become unemployed. Don Thompson, CEO of McDonalds weighed in on the issue. He stated: “About one-third of our employees are ages 16 to 19. Nearly 60 percent of our hourly employees are 24 years or younger. And about 70 percent of our workforce is part-time, many of whom are just getting started. We’re proud that we and our franchisees provide training and resources to help open the door of opportunity that many of us have been
blessed to experience.” He added that there is “no better testament to McDonald’s commitment to employees than the fact that in U.S. alone, almost 50 percent of our general managers in company-operated restaurants started as hourly employees.” Do the math: A typical restaurant that does $1,000,000 per year in sales, averages food costs of 40 percent and direct labor costs of 15 percent plus management and assistant management costs of 10 percent. If you double the direct labor costs to $15 per hour, they now increase the labor costs to 30 percent or $300,000. Food costs would be undoubtedly higher because the suppliers will be increasing the wages of their workers as well, but even using current average food costs at 40 percent, amounts to $400,000. Add in the rent of 10 percent or $100,000; then insurance, utilities, administrative, supplies, - another 15 percent or $150,000; a Franchise Royalty payment of 5 percent or $50,000; advertising expense of 5 percent or $50,000, and you have a total of expenses of $1,050,000 - or a net loss of $50,000. The only option is to raise prices and hope that the price increases do not cause a drop in sales. Of course the resultant increases in the price of everything will wipe out the additional wages of the employees as everything will cost them more. Inflation anyone? Isn’t that the point? This is a free country. No one has to work at McDonalds. For those of us whose parents were immigrants, our parents told us to work hard, go to school, get promoted or move onto a better job. Where does it say that we should get more money for doing the same job without increasing the
“An increase of the minimum wage on a national level will have a major domino, inflationary effect.” level of productivity or our value to the companies for whom we work? The fact that almost 50 percent of McDonald’s general managers started out as hourly employees is testimony to the opportunity minimum wage earners have to earn their piece of the American Dream. Let’s not forget that McDonalds feeds us, provides jobs, pays taxes, and financially supports many causes, including its own Ronald McDonald House. McDonald’s is part of
the solution, not part of the problem. With more than 40 years of experience in corporate management, franchising, direct sales, and business administration, Donald D. Boroian is among the nation’s most sought after consultants in the field of business expansion. He and his companies have provided consulting services for more than 10,000 businesses, including some
of the nation’s best known franchisors: McDonald’s, KFC, Hallmark, Ford, and many more. Mr. Boroian’s book, The Franchise Advantage, is widely regarded as one of the most authoritative and skillfully written books on franchise development. He is also co-author, along with Joseph Mancuso, of the popular Simon & Schuster book, How to Buy and Manage a Franchise. Mr. Boroian’s third book, Franchising Your Business, is largely regarded as the most authoritative publication on franchising. For more information visit: Website: www.francorp.com
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ex per t advice
Page 39
H av e You r Say by Rob S w ystu n
G reat A mer ica n Deals
Great American Deals
set to Leap across State Borders You may not have heard of Great American Deals yet, but you most certainly know their brand ambassador. A quick trip to Great American Deals’ website will bring you face to face with well-known TV personality Pat Sajak, who, in addition to being the brand ambassador, is the founder of the company. “Currently, Great American Deals is only in communities in southern California, but it’s set to make the leap across state borders soon,” Director of Franchising and Chief Operations Officer for the company Mark Vannuki said from Deals’ head office in Beverly Hills. In a nutshell, Great American Deals is a company that offers hyper-local daily deals. Started about five years ago, the company took its time perfecting its business model in The Conjejo Valey, satellite city of Los Angeles, and has been steadily growing in other similar cities since the beginning of this year when the company started franchising. Essentially, local businesses sign up to make great offers to locals, which brings them business. But, there’s more
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to it than just that. Great American Deals also incorporates giving back to the community into its business model, meaning with every deal done through the site, the customer wins because they get a great deal, the merchant wins because they get business and the community wins because a portion of the money from every deal goes to a local school or charitable organization. “We take a very, very community oriented and very, very localized approach to this industry,” Vannuki said. It’s a way to introduce new customers to local businesses in a risk-free way, he pointed out. The revenue generated is split between the merchant, the franchisee and the franchisor, with the aforementioned portion going to a local cause. Being localized like this means that Great American Deals has much better rates of customer retention than its competitors because most customers are local and enjoy supporting local businesses when they can. The company has just started its national expansion and is pushing into Colorado and other states in the mid-west and across the eastern seaboard, meaning you might just see a Great American Deals site popping up in your area soon.
Mark Vannuki
The company currently has 11 franchisees and will probably have close to 30 by the end of this year.
What makes a good franchisee? “A good Great American Deals franchisee will be community conscious,” Vannuki said. “Typically, franchisees will be a team of two or three people who will
“We derive our success from knowing a community and an area and what we call ‘hidden gem’ businesses better than the bigger daily deal sites out there.” “We derive our success from knowing a community and an area and what we call ‘hidden gem’ businesses better than the bigger daily deal sites out there,” Vannuki explained.
operate one franchise. It’s imperative that at least one of the team members be a woman,” he added. Great American Deals has franchisee teams who are husband and wife, brother and sister, or groups of soccer moms. They’ve usually lived in their area for a while, they usually have children, and, above all else, they really care about their community and are highly social
individuals who are involved in their community.
Why is there a need for this business? While everyone loves a great deal and there are a few big daily deal sites out there, none of them are as localized as Great American Deals and none of them are franchisable like Deals is.
“Great American Deals is also a way for someone to create a flexible work schedule for themselves and create a new lifestyle for themselves. There is virtually no ceiling on how much a person can make, as long as they are willing to put in the work,” the Franchising Manager said.
What support do franchisees get? Franchisees can look into franchising opportunities at the company’s website franchising.greatamericandeals.com. Once they are approved, they go through an intense three-day training program that takes place at the company’s headquarters in Beverly Hills.
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H av e You r Say by Rob S w ystun
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H av e You r Say by Rob S w ystu n
G reat A mer ica n Deals
“However,” Vannuki said, “for Great American Deals, it’s not just about finding new franchisees, it’s about finding the right cities to operate in too. “We create a database with our franchises,” he said. “We put a lot of work and analysis into developing the right territory.” The company looks at merchant density in a city and looks for specific types of cities. The cities Great American Deals are most interested in getting into are 250,000 300,000 people in population and have a footprint that is about a 20 minute drive from one end to another.
the technological support is especially important. One technological innovation that the company boasts is its Deal Alert, which gets blasted out via its smartphone app. “If a bowling alley is having a slow night,” Vannuki said as an example, “it can create a deal alert saying bowling is half-price for the next two hours and Great American Deals will send it to all the local customers in that bowling alley’s area. These Deal Alerts are great for drumming up business quickly by offering time-sensitive deals.” Being internet-based also keeps startup
Generally, they will either be a mid-size standalone city or a satellite city on the outskirts of a metropolis. Once the training period is over for franchisees, Great American Deals also provides them a lot of corporate, technical and public relations support. Seeing as how the company is internet-based,
“We take a very, very community oriented and very, very localized approach to this industry.”
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costs down. Franchisees can start a franchise for about $35,000 and the company recommends that franchisees spend an addition $25,000 - $30,000 in marketing. A lot of investment goes into creating a database of potential customers within their territories. “The highly localized daily deals business model is here to stay,” Vannuki said, “with a focus on giving back to the community.” And if you don’t believe him, you can always take Pat Sajak’s word for it. For more information visit: www.franchising.greatamericandeals.com
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Franchising USA
Fr anchisOR I N DEP T H by Gina Gill
Renue S ystems
renue systems cleaning up Founded in 1991 by a 21year-old individual, Renue Systems is now a unique and highly recommended cleaning franchise. Originally the company cleaned carpets in houses and restaurants in the Chicago area. Over time it grew and eventually partnered with a hotel, where the founder discovered his passion as well as a better business model. Focusing on the hospitality industry has allowed Renue to develop a system and process exclusive
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to hotels, which has created more success through recognition within the field. Once known as National Appeal Carpet, Renue now holds preferred vendor relationships with some of the biggest hotels throughout the country including: Marriott, Hilton, Hyatt, Best Western, Wyndham and Fairmont. They provide state-of-the-art deep cleaning and restoration services while adhering to the live and busy environment of the hotel industry. Renue began licensing in 1999 and started franchising three years later. There are
nearly 30 franchises throughout the U.S., Canada, Mexico and it recently signed a franchise in Qatar in the Middle East. “It’s a big focus of ours to have more franchises in the U.S., as well as overseas. When we say franchise, we give out large territories, it is typically one per city. While we can cover most of North America with our current franchise network,” explained President, David Grossman, “as we continue to broaden our geographic footprint we make ourselves more valuable to our international customers. Thus, we boost our name recognition and reputation and increase
“It’s a big focus of ours to have more franchises in the U.S., as well as overseas. When we say franchise, we give out large territories, it is typically one per city.” in a live environment. We are always coming into contact with our customers and our customer’s customers, so our team of workers has to be very professional and reliable.”
The importance of cleanliness Social media and the Internet have become a part of everyday life and customers use it to research which hotels they will book. It has become obvious that the customer’s main concern is cleanliness. David said that by having Renue Systems a part of the hotel’s cleaning process, it can ensure a satisfied customer.
the value of the Renue brand,” he added. There are 18 locations available in North America, including some especially large territories. Renue is looking into approximately a dozen other countries to begin franchises with a balanced priority between North America and overseas. Almost anyone can become a franchisee through Renue Systems, in fact a candidate does not need any background in cleaning or hotels. It is a system that can be easily taught by the home office. “Internationally, we seek larger parties, but in the U.S., we are looking for owner operators who can oversee a small team of blue collar workers, yet spend most of their time interacting with white collar customers with our support. Someone who is very marketing orientated, proactive and small business oriented. Personality is important since we work closely with our
franchisee partners. We target people we can work well with,” said David. “There is no cold calling in this business but we really do want owners to spend a lot of time marketing to hotels with our support. After all, we are in the customer service business, which is the same business as our customers.” With a specialized focused on hotels, Renue has developed a system that is specific to the hospitality business. “There are a lot of cleaning companies. Some focus on homes and commercial establishments but because we focus almost exclusively on hotels and have cleaned more hotel rooms, we believe, than anyone - we have gotten good at it,” said David. “Hotels are different than other types of customers for obvious reasons, they never close. It’s not like an office building where you can go from 5 pm to 9 am, for example. We are always working
“If you look at websites like tripadvisor and social media outlets - a big issue that guests have is cleanliness. Increasingly, hotel managers see the importance of keeping their hotel clean. Hotels, by and large, are not equipped to do this work. Some do it and some try to do it but they are not experts in the type of work we do, which is deep cleaning. It typically costs them more to do it in-house and the results are inferior for the simple reason that deep cleaning is our core focus versus one of many different important tasks of our hotel customers,” said David Renue’s services are not housekeeping; rather their work is periodic throughout the year where they do the heavy lifting and the deep restorative cleaning. They clean anything from the carpet in the guest’s rooms to the hallways, to the furniture, to drapes as well as the tiles in the bathroom. They even restore marble. Renue specializes in removing odors including pet, smoke and cooking odors. The company has its own equipment and chemicals which are manufactured specifically for the job at hand. “The quality is going to be a lot better having an expert perform this work because it is not a core function of the hotel. Running a hotel is very chaotic-
Franchising USA
fr anchiso r in dept h by Gina Gill
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Fr anchisOR I N DEP T H by Gina Gill
Renue S ystems
there are hundreds of things going on, it’s almost like fire fighting,” explained David. “If they can call us to take care of their deep cleaning needs and they know it can get done and they will not have to manage the process while having good results that are cost effective, it’s less for them to worry about.”
More than just a cleaning company “We are very sensitive to the hotel industry and how it functions because we are dealing with a live environment and will run into guests from time to time,” said David. “Also, by focusing on the hotel industry, we have developed very strong relationships with most of the well-known hotels. We became their preferred vendor after they did their research. We do high quality work and they know it’s the most cost effective solution for their hotels.” Renue Systems believes an important
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aspect of the franchise is support. There are two areas in which they help: technical work and marketing.
meet with the hotels.
The technical work involves how to actually perform the services. It is a week and a half of intensive training in the home office located just outside Chicago. If the franchise is overseas, they will travel internationally to that location.
from our home office, often it is myself.
The training is also performed live within hotels so the franchisee can see exactly how the services are performed in an active environment. There are visits from time to time after the franchise is up and running and constant availability through e-mail and telephone. Marketing is made easy through relationships with reputable hotels. Associated hotels are encouraged to help market the Renue Systems facilities. Several team members in the home office will contact hotels within the franchise’s area to create a local presence and ask to
“Soon after we open the office, we make all these contacts and we send someone
We spend a few days going around making the initial meetings so the franchisee
feels comfortable doing them. We will set up a number of these over the next few
months until they meet a lot of the hotels,” explained David. “We encourage them to do a demonstration, where we clean an
area or a small room, to show the quality of the work. We find that process goes a
long way with starting a relationship with that property and ultimately getting to do
some work with them. From there we build on the relationship through our quality, reliability and responsiveness as their
expert whose purpose is to assist them with all their deep cleaning needs.” For more information visit: www.renuesystems.com
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PHYSICIAN SUPERVISED
Like many medical practitioners, you may have urged overweight patients to trim down, but didn’t have the specific tools to help them actually do it. With the Dr. G’s Weight Loss & Wellness Physician’s Program, your practice can provide patients with a proven system that will help them lose the weight and improve their health.
THE PHYSICIAN’S PROGRAM Our physicians’ franchise opportunity enables established medical practices to seamlessly add Dr. G’s programs to their services. It’s completely turnkey—Dr. G’s provides you with the materials, training and support to help your patients lose weight and get healthier. IT’S A HEALTHY OPPORTUNITY FOR PATIENTS & PHYSICIANS THEY LOSE WEIGHT. YOU INCREASE REVENUES. IT’S THAT SIMPLE. Call 800-DRG-8242 or visit www.drgsfranchise.com to learn more and get started with Dr. G’s Weight Loss & Wellness Franchising USA
ex per t advice
Howard Tarnoff, Senior Vice President of Customer Success, Ceridian
Three Ways FLSA Regulations Can
Overwhelm a SpreadsheetBased Payroll System ONE: Spreadsheet Programs Are Powerful—but Complicated
Howard Tarnoff
Franchises have many moving parts. Typically, among those are large populations of hourly wage employees whose schedules and related pay fluctuate widely. Multiple locations, often across multiple states, amplify the complexity of a franchise’s payroll, which the Fair Labor Standards Act (FLSA) further complicates. Recent growth in the reach of FLSA regulations almost guarantees problems for any franchisee who manages payroll through a spreadsheet program. The following article explores three ways this is so and discusses compelling alternatives.
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It’s difficult to go to an event in the payroll industry and not hear something like this: “Is your payroll department modernized, or does your payroll technology still consist of spreadsheets?” Like most clichés, this is rooted in some truth—and in some exaggeration. Yes, spreadsheet programs really are the calling card of companies struggling to control payroll. But this isn’t necessarily spreadsheets’ fault. Spreadsheets have their theoretical advantages - they’re powerful productivity tools. The most popular spreadsheet programs feature tremendous automation capabilities. At their limits, they can perform highly complex calculations. The number of people who know how to program spreadsheets to their full potential, however—and build in requisite controls and comprehensive security over the data—is exceedingly small. They’re probably not working in your payroll department. The spreadsheet programs they’re running fail to account for the intricacies of FLSA rules, such as the inclusion of all applicable earnings in the regular rate of pay.
consider everything payroll-related that is affected by FLSA regulations and their state-by-state counterparts: • Data on FLSA-mandated meal and rest periods needs to be correct. • Minimum wage for employees must also be correct, yet is apt to be different from state to state and for minors vs. adults. • Additional FLSA regulations govern the total number of hours a minor may work in a given week. • During any pay period, any number of employees may have earned overtime. Some of the overtime comes at or near the end of a pay period. In the midst of processing payroll, your payroll department runs a large risk of missing these extra hours and associated pay.
TWO: Spreadsheets Are Inaccurately Capturing Your Payroll and Related Data
The list goes on. At issue are the manual processes inherent to spreadsheets. Staff manually enters data from payroll or time and attendance. They might even have to transmit it from various locations over unsecure networks. This introduces errors. Delays beset the workflow. Payroll becomes a race to the finish line as staff scramble to reconcile and true everything in time. Why? For payroll to be right every time, employers need real-time information about not only payroll, but time and attendance, as well as benefits administration.
They’re capturing the data too late, as well. Remember: Few people know how to use a spreadsheet to its full potential. Now,
That’s a large amount of critical information to enter into a spreadsheet— continually. Even payroll technologies
“Recent growth in the reach of FLSA regulations almost guarantees problems for any franchisee who manages payroll through a spreadsheet program.” that aren’t spreadsheet-based can struggle. Most systems can’t combine data from time and attendance with payroll in real time to produce one current view. In the time it takes to capture all data from time and attendance and run the necessary calculations for payroll, several things may happen and be left unaccounted for, in payroll. Systems that eliminate as much of this as possible contain all these processes within a single application. They also automate as much as possible. They’re certainly not spreadsheet-based.
THREE: FLSA Regulations Are Changing Too Fast for Spreadsheets to Keep Up FLSA regulations and the legal precedents for them are evolving quickly, along with the many changes in state-by-state regulations much like the FLSA’s. In response to an executive memorandum earlier this year, for instance, the United States Department of Labor is reviewing
regulations regarding who is eligible for overtime. In a flurry of legislation, many states are revisiting their minimum wage laws. Even the seemingly straightforward question of when an hourly employee’s shift begins and ends is encountering legal ambiguity. At your company, who monitors this information? Who makes sure a spreadsheet’s calculations are compliant with the latest, as it happens? These are the wrong questions. The franchise owner has too many other responsibilities. Regulations change too quickly for all but the most deep-pocketed corporations to keep pace. The solution is to invest in technology for payroll (and everything associated with it) based in the cloud and delivered via software-as-a-service (SaaS)—i.e., through broadband Internet. A reputable vendor of this type of technology for payroll will provide realtime delivery of your data and regularly update its offering to reflect relevant
changes in law. Notification of regulatory changes gets sent to the user.
It’s a Question of Efficiency and Resources It’s almost guaranteed that payroll departments using them are underutilizing spreadsheets. That’s because the complexity in optimizing spreadsheets places their full potential out of most payroll departments’ reach. For this reason, spreadsheets are ill-suited to the vagaries of payroll for franchises and other organizations that employ many hourly workers across large geographic footprints. If your franchise relies on spreadsheet programs for payroll, you risk running afoul of FLSA regulations. Howard Tarnoff is the Senior Vice President of Customer Success at Ceridian, a leading provider of Payroll & Tax, Workforce Management, Benefits, and Human Resources solutions. In his role, Howard drives the strategy and execution of Ceridian’s critically acclaimed XOXO Customer Success Program in North America. For more information: www.ceridian.com
Franchising USA
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Mark Ryski, CEO and Founder, HeadCount Corporation
When it Comes to Store Analytics, Franchise Networks Need to Act Like Chains The benefits of tracking traffic and measuring conversion rates in retail stores have long been established and are now widely considered fundamental in retailing. Not only have retailers been doing it for decades, but the retailers who leverage the insights effectively have an “insight edge” and consequently a competitive advantage over retailers who do not. Over the course of the last ten years, I have worked with a multitude of franchise/ dealer networks including those in wireless, general merchandise, electronics, home improvement and automotive segments. Regardless of the type of franchise network, I see a consistent disconnect between franchisors and franchisees when it comes to analytics and especially store traffic and conversion analytics. Unfortunately, most franchisees don’t track traffic or conversion rates in their stores, not necessarily because they don’t see the value in the metrics, but rather because they can’t come to terms with who should pay for it. Chains don’t have this dilemma. Mark Ryski
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There is strength in networks, but the lack of coordination on important areas like traffic and conversion analytics puts
franchisee networks at a competitive disadvantage. Let’s start with the benefits for franchisees.
What’s in it for Franchisees? Lots. Knowing when and how many people visit your store is profoundly important. Traffic volume defines the sales opportunity in your store and so, to truly know how well you’re performing, you need to know what’s possible. That’s what traffic counts help inform. For example, if 200 people visit your store in a day, you can’t sell to 201 people. In this case, 200 defines the maximum potential. Conversion rate, calculated by dividing sales transaction count by traffic count, is like the store’s batting average. Conversion rate measures how well the store did at “converting” a store visitor into a buyer. These two simple metrics provide powerful insights that can help franchisees: • Improve sales performance by focusing on customer conversion • Optimize payroll expense by minimizing over/under staffing • Measure the impact of local advertising and promotional activities • Measure the impact of local merchandising, training and store design programs • Hold store staff accountable for results, even when you’re not in the store
What’s in it for the Franchisor? Lots, too. Traffic and conversion analytics isn’t just a tool for franchisees; it also has significant value in helping the franchisor create more effective and efficient programs, and ultimately a more competitive and successful network. Most franchise networks I’ve worked with have a multitude of programs to help support and drive business for franchisees. From national marketing programs and training to mystery shop and merchandising programs. This is all wonderful, but how effective are these programs? Without traffic and conversion analytics to provide critical context, it’s virtually impossible for the franchisor to know if their programs are delivering the value that they think they are. Let’s consider a national promotional campaign as an example. Following a new, national promotion, the franchisor’s marketing team collects the sales data and determines that franchisee sales were up 2 percent compared to the same period last year. Unfortunately, the marketing team was expecting a 5 percent lift in sales, and so based on these results; they conclude that the promotion wasn’t successful and start to consider other alternatives for future promotions. With only sales data to rely upon, what other conclusion can the marketing team draw?
But what if the franchisor’s marketing team had franchisee store traffic and conversion data at its disposal? The data might show that franchisee store traffic was up 7 percent compared to the prior year. Recall, traffic defines the sales opportunity, so one could argue that the sales opportunity increased by 7 percent – an impressive result and proof the promotion drove sales opportunities into the stores. But what happened to sales? Traffic was up 7 percent, but sales were only up 2 percent – how is that possible? Conversion rate helps answer this question. As it turns out, in this example, the promotion was effective at driving prospects into the stores, but due to inventory issues, merchandising, staffing or other issues, the stores were unable to convert the increased traffic opportunity. Less of the traffic converted into a sale and that’s why sales are only up 2 percent. Based on this data, the franchisor now knows that the promotion was effective, but more work needs to be done to help franchisees convert the traffic they receive. Breaking the sales results out by individual driver provides insight into why the sales goal was not achieved. In this case, it’s clear that the franchisees need to focus on improving conversion rates. Beyond measuring marketing programs, there are a wide range of uses for traffic/ conversion data that franchisors can leverage, including:
• Understand long-term traffic and conversion trends to help more accurately plan and forecast business I’ve written two books on the topic that provide plenty of detail about the reasons why all retailers, regardless of size or category, need to track store traffic and conversion rates. Franchisees shouldn’t believe that just because they are part of a network that these metrics don’t apply – they do, just as they do for any retail store. But the benefits of traffic and conversion analytics go beyond helping the franchisee run his/her store better, there’s also great value to the franchisor as well.
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Mark Ryski, CEO and Founder, HeadCount Corporation
“Knowing when and how many people visit your store is profoundly important.” process because franchisors have the expertise and resources to compare options and negotiate the best rates on behalf of the entire network. But what is the franchisor to do with franchisees that simply don’t see the value?
Don’t Force Compliance – Build a Meaningful Index
• Understanding how dealers are performing relative to their traffic opportunity • Identifying underlying sales drivers to better assist dealers • Developing store performance benchmarks and best practices • Measuring the impact of new merchandising, training and store design programs • Planning for special events and holidays • Identifying regional and broad market trends, including impact of competitors • Spotting long-term trends to better forecast demand OK, so there are plenty of benefits for both the franchisor and the franchisee, but how do you reconcile the “who pays?” issue.
Shared Benefit – Shared Cost The franchisor doesn’t want to take on the extra financial burden of paying for traffic counters nor any ongoing fees that may be part of a meaningful traffic and conversion program. Franchisees sure don’t want to pay for it – many franchisees would say they already pay enough in franchise fees, marketing funds and more. Occasionally, you will find the odd, renegade franchisee that goes ahead with traffic counting without franchisor support. While it’s commendable that they
Franchising USA
do, and they will certainly realize all the benefits from doing so – doing traffic and conversion analytics in isolation misses out on the benefits of the network, namely performance indexes. Knowing how your store compares to others and sharing learnings across the network to improve overall results takes a traffic and conversion analytics program to a whole new level. Ironically, some dealers really see the value but can’t convince the franchisor that tracking traffic and conversion is an important thing to do. So, sadly, these franchisees are left to fend for themselves, gaining no leverage from the network. While cost is not an inconsequential issue, it needs to be put in perspective relative to the value the insights traffic and conversion analytics can deliver – to both the franchisor and franchisee. Since there is value to both the franchisor and franchisee, it makes sense to share the expense. Creating a cost sharing model is not complicated and can be tailored to fairly meet the needs of all stakeholders. The most successful franchise programs I’ve seen recognize this shared value and both parties share in the cost and the benefits. As for most network-wide programs, it makes sense for the franchisor to drive the needs assessment and vendor selection
Even the best franchise networks can’t get 100 percent alignment with franchisees on every initiative – even for something as useful and important as traffic and conversion analytics. As franchisors have frequently told me, “this is just the nature of franchise networks.” Fair point, but franchise networks can’t afford to ignore traffic and conversion analytics just because some of their franchisees don’t get it. Let’s face it, like any organization franchise networks have leaders and laggards. Traffic and conversion analytics aren’t for every franchisee. Franchisors should offer it to all, but focus on getting the leaders to adopt. The goal should be to get a representative, national sample of stores from which a meaningful index can be built. Launching any new program can be a challenge, but when you consider the potential value to the entire network in undertaking a comprehensive traffic and conversion analytics program – or at least in a meaningful index of stores – the benefits far outweigh the effort. The fact is, there’s tremendous value in traffic and conversion analytics for both the franchisor and franchisee, and so it’s in the best interest of both parties to coordinate their efforts on it. Mark Ryski is author of Conversion: The Last Great Retail Metric and When Retail Customers Count and CEO and founder of HeadCount Corporation. For more information: Website: www.headcount.com
august 2014
Veterans in Franchising www.franchisingusamagazine.com
Liberty Tax
Creating success for Franchisees
6 Takeaways For Stay at Home CEOs can
Soldier’s Heart Help the Franchise Industry?
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To work independently To your workown independently To set work schedule To work independently To set your own work you schedule To work at something enjoy To set your own work schedule To To work at something you enjoy control your own salary To To work at something you enjoy control your own salary To control your own salary
Want To Be Your Want To Be Your Want Be Your OwnToBoss… Own Boss… Own Boss…
“BUILDING AMERICA WITH AMERICAN HEROES”
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Veterans make great franchise Veterans make greattraining franchise owners! Your military has Veterans make great franchise owners! Your military training has taught you many things that transfer owners! Your military training has taught youthe many things that transfer well into world of franchising. taught youthe many things that transfer well into world of franchising. well into the world of franchising.
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V eterans in F ranchisin g S upplement au g ust 2 0 1 4 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com
Contents Cover Story
Expert Advice
56 Liberty Tax Offers Financial Security and Time to Enjoy It
58 Can Soldier’s Heart Help the Franchise Industry Jim Mingey, Veteran Business Services
Profiles 60 CD One Price Cleaners
Franchisor in Depth
62 7-Eleven
66 Creative Colors International
64 By Renae Christine
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V e t er ans in Fr anchising
COVER STORY
So, six years ago, after 19 years at the automotive dealership, Scott left to join Nicole in running their four Liberty Tax outlets and doing what they love doing in the off-tax season. A few years ago, that meant driving all over the country and watching their son compete in motocross racing, something most parents just can’t do with their regular work gigs. “The quality of life in our type of business is just unbeatable,” Nicole said during a recent interview from her home in Rapid City, SD where the couple owns three Liberty Tax franchises. They own another one in Gillette, WY.
In the beginning Although now the couple owns and runs four Liberty Tax outlets, doing over 6,000 tax returns per year and employing just over 100 people in the busy season, prior to Scott joining her, Nicole purchased her first Liberty Tax franchise in 2003. And prior to that, she worked as a Certified Practicing Accountant, first for a business from 1994 - 2000 and then on her own from home for a couple of years.
Liberty Tax offers financial security and time to enjoy it If there were four words that Nicole Ossenfort would use to get people to buy a Liberty Tax franchise, it would probably be what she finds most appealing about owning one: “Eight months of vacation.” Franchising USA
With tax season only going from January to April, operating a Liberty Tax franchise has afforded Ossenfort and her husband Scott Ossenfort the one thing even better than financial security: time to do the things they love. In fact, Nicole says, she used to tease Scott that his old job as a retail manager for an automotive dealership used to interfere with her lifestyle because while she had the aforementioned eight months of vacation time, Scott only had three weeks.
While working out of her home she was mostly bookkeeping, but then tax season rolled around and the majority of Nicole’s clients just assumed she’d be doing their taxes, too. So, she did them and that’s when she learned that tax season was highly lucrative for someone with her skill set. “I just had to figure out how to do the maximum amount of tax returns in the most efficient manner,” she explained. Because Nicole had grown up around
parents who regularly talked business at the dinner table, she’s always had an entrepreneurial streak in her. So, knowing that taxes were good business, the next step was finding a franchise that she liked and Liberty Tax fit just right.
“If the great culture isn’t enough to get you to inquire about Liberty Tax, perhaps those eight months of vacation just might.”
“I went looking for a franchise business model, knowing that entrepreneurship was in my future,” Nicole said. “I also knew that the franchise business model was my model of choice.” Once she and Scott had done their research on the then-young company, they flew out to Virginia Beach, VA for a discovery day and were impressed with Liberty Tax’s leader, CEO John Hewitt, and how he ran things. They also met with the company’s head of marketing, head of technology and several other people, including other franchisees. “We were just really impressed with what we saw,” she recalled. Nicole said the factors behind her decision to go with Liberty Tax were the leadership; the superb team at the company; the company’s core beliefs, which matched up with Scott’s and her own; and the clear vision the company had for its future.
The process Nicole described the franchising process at Liberty Tax as extremely streamlined. She first went for a five-day Effective Operations Training course, where new franchisees learn how to set up and run a successful tax business, which includes choosing the right location. Nicole said the company helps you narrow your choices down to a few good locations and then someone from Liberty will give you an honest opinion about which location they believe is best. Liberty representatives also offer assistance for lease negotiations. “I felt fully prepared for that first tax season that got us up and running,” she said. Support is ongoing, too. In the tax offseason, she said, Liberty Tax has Liberty College, where people can upgrade their skills. It’s called Liberty College because
it actually runs somewhat like a college. Franchisees can choose from several courses available and only take the ones they feel they would benefit from the most. You figure out which area your business needs to improve and then you choose those corresponding classes. The courses include leadership, marketing, guerrilla marketing, financial management and many more. And franchise owners can take courses via the internet if they can’t make it to one of Liberty Tax’s many training seminars across the country. Plus, they can use the web-based courses to help train their own staff. Nicole has even been privy to the special training Liberty Tax offers to its Top Guns - the biggest producing franchises in the country - and the Elite 18, the top 18 producing franchisees in the country.
Way of life Nicole said Liberty Tax offers a great opportunity not only financially, but in terms of a way of life. However, she noted, you have to follow the Liberty Tax formula and you have to be committed to stellar customer service. As competitive as Liberty Tax franchisees can be - even with each other, Nicole said, the culture at the company is one of family and support for fellow franchisees. “The culture is like none other I’ve ever experienced,” she said. And, if the great culture isn’t enough to get you to inquire about Liberty Tax, perhaps those eight months of vacation just might. For more information: www.libertytaxfranchise.com 877-285-4237
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Jim Mingey, Veterans Business Services
Can Soldier’s He franchise i
Lately the franchise industry has created some momentum with transitioning military into franchise opportunities. Pretty much everyone seems to think that the discipline and commitments to mission in the military will convert easily into success in the business world.
There’s also a lot of focus in the media lately on how a great percentage of transitioning service members are afflicted with PTSD and ‘all that entails’. PTSD, or Post Traumatic Stress Disorder, can elicit silent responses of fear, pity and other unfounded conclusions from the general public. Traumatic Stress has of course been with society from the dawn of civilization and can crush the spirit out of any affected person. Everyone can and should empathize with the pain of this trauma but no one should generalize about how anyone’s condition could negatively affect a person, and especially how service men and women with Soldier’s Heart might perform in the franchise arena.
I prefer to call PTSD “Soldier’s Heart” as it was referred to after the Civil War. Back then there were no estimates of those affected and most likely just silence as to whether a returning soldier with Soldier’s Heart could run a successful business. Back then, and probably in most cases now, Soldier’s Heart just always loomed as permanent sadness and most just carried the burden while they dealt with the everyday pressures (both successes and failures) of life. We live in an “acronym” labeled society where individuals with various short and long term conditions are unfortunately not judged by the sum of their parts. Soldier’s Heart can of course be debilitating at its
eart help the industry?
Jim Mingey
family business assistance and networking advantages which can mitigate risks for Veterans and Franchisors as well. Veterans with Soldier’s Heart couldn’t control what happened to them, but they can and do control their attitudes now and can master change rather than let change master them. So if they can meet basic financial and other franchise system requirements, they just may have a secret weapon for success.
worst but as an asset if one considers the strength it takes to manage that condition. In my own family, a WW II combat veteran bore the burden of Soldier’s Heart alone but was strong enough to build a successful business which helped educate 11 children. One of the unseen strengths of the Greatest Generation was how they carried there Soldiers Hearts with dignity and always strived to complete their missions in life, especially their commitments to family and business. Our latest heroes will do the same. They have borne the battle in war and can easily manage the competitive challenges of a franchise opportunity. One of the most important things
franchisors evaluate when considering a franchise candidate is whether the person has the support of their families. If a Veteran has the determination and creativity to grow, change and deal with difficult problems then that Veteran probably has the strength to handle typical adversity presented when implementing a new franchise. The Veteran network and support systems available today for Veterans with disabilities are unparalleled and greatly extend multiple business mentoring opportunities. Programs like the SBA’s Boots to Business Reboot and the Entrepreneurial Bootcamp for Veterans with Disabilities (EBV), VETtoCEO offer both individual and
And speaking of secret weapons, most with Soldier’s Heart would be eligible for VA financial support to acquire or develop a franchise concept. Veterans can apply for eligibility status for Chapter 31 benefits online. Once confirmed they then develop their self-employment plan which can anywhere from $10,000 to even $100, 000 for those deemed have Category I status. If self-employment is deemed the most appropriate career goal, then VRE financial support can go a long way showing banks and other investors that the Veteran has extra “skin the game”. However the Chapter 31 process can be arduous and time consuming at VA so patience is an essential quality needed. However if you’ve got a Soldier’s Heart crisis or see one that needs immediate attention, call 1-800-273-8255 24/7. If, like most Veterans, you’re already managing with your Soldier’s Heart and need to move forward to examine an opportrunity, just contact me. For more information contact Jim at: 202-349-0860 or jmingey@veteransbusinessservices.us
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CD O ne Pr ice Clea ner s
Dry Cleaners’ Heroes of the Neighborhood Program Gives Back to Military and Families Receiving Medical Care at Military and VA Medical Centers If a picture is worth a thousand words, the CD One Price Cleaner’s Flag Mosaic Project honoring active and veteran military could fill library upon library. In honor of active and veteran service men and women who have bravely served, suburban Chicago-based dry cleaning franchisor CD One Price Cleaners is partnering with Fisher House Foundation. The Fisher House program provides a “home away from home” for families of patients receiving medical care at major military and VA medical centers.
Franchising USA
The homes provide temporary free lodging so families can be close to their loved ones during a medical crisis. The “Heroes of the Neighborhood” program is a collaboration between CD One Price Cleaners and its valued customers to raise support and awareness for Fisher House Foundation and two of its houses in Chicago and Minneapolis, by creating a customized photographic Flag Mosaic as a visual thank you to all U.S. military and their families. “We are thrilled to be partnering with the Fisher House Foundation, an inspiring organization that creates a home for military families who are undergoing serious medical treatments and therapy,” said John Morocco, vice president of CD One Price Cleaners. “As we move through the summer months and toward Veteran’s
Day, our company is creating a way to actively give back to U.S. military families in need and encouraging our generous customers to do the very same.” From June 15 through October 1, CD One Price Cleaners across Chicagoland and Minneapolis are inviting individuals to donate $5 to Fisher House Foundation and upload a photo of their favorite active or veteran U.S. military soldier. All appropriate military photos will be accepted. Photos of military personnel will be posted to a special website containing real-time interactive streaming. The pictures will ideally span a century (from WWI to the present) and serve as a collective tribute to all U.S. military who have served America. The flag mosaic can support up to 9,000 photos.
ABOUT FISHER HOUSE Fisher House Foundation is best known for a network of comfort homes where military and veterans’ families can stay at no cost while a loved one is receiving treatment. These homes are located at major military and VA medical centers nationwide and in Europe, close to the medical center or hospital it serves. Fisher Houses have up to 21 suites, with private bedrooms and baths. Families share a common kitchen, laundry facilities, a warm dining room and an inviting living room. Fisher House Foundation ensures that there is never a lodging fee. Since inception, the program has saved military and veterans’ families an estimated $235 million in out of pocket costs for lodging and transportation. For more information visit: www.fisherhouse.org. Every photo submitted will help construct two 4-by-6-foot American Flag Mosaics that will be presented to Fisher House locations in Hines, Ill., and Minneapolis. Minn. All collected funds and the mosaic flags will be presented at a very special ceremony at both locations on or around Veteran’s Day, Nov. 11, 2014. Anyone interested in donating to CD One Price Cleaners’ Flag Mosaic Project is encouraged to visit www.cdonepricecleaners.com.
ABOUT CD ONE PRICE CLEANERS CD One Price Cleaners is based in suburban Chicago. Founded in 2001, the company operates 31 franchise and corporate-owned locations in Chicago and Minneapolis. Since opening its first store in Lincolnwood, Ill. in 2001, the company has offered consumers a one-price policy for all men’s and women’s garments and a same-day service policy (in by 10am and out by 5pm) at no extra charge. Follow CD One Price Cleaners on Facebook or visit www.cdonepricecleaners.com
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7-Eleven
®
7-Eleven Increases Franchise Recruiting Incentive With more servicemen and women leaving the military and seeking careers, 7-Eleven, Inc. expands its franchisefee discount for qualified veterans separated within the last five years. This enhanced program comes as the company observes its 50th year franchising 7-Eleven stores in the U.S. Charles Williams got his first store in Copperas Cove, Texas, using 7-Eleven’s earlier discount program. Now, he and his wife, Theresa will franchise a second store this September in Killeen. Recognized as “military friendly” by multiple veterans’ organizations and publications, 7-Eleven, Inc. is serious about growing its franchisee ranks with qualified military veterans. The world’s largest convenience retailer has increased its franchising-fee discount to 20 percent capped at $50,000 as an added incentive for qualified veterans who have left the service in the last five years. 7-Eleven will continue to offer a 10 percent franchise fee discount to all other military veterans who meet the company’s franchisee qualifications. The company first instituted the incentive for retired and separated veterans of the U.S. Armed Forces in 2009 to help them achieve the American dream of owning one’s own business. “More than 100,000 veterans are expected to retire this year,” said Greg Franks, 7-Eleven vice president of franchise systems, “And we believe 7-Eleven offers
Franchising USA
Charles and Theresa Williams
an excellent opportunity for those who dream of owning their own business. Experience has shown us that veterans have the leadership traits, work ethic and organization skills to succeed in our business.” 2014 marks 7-Eleven’s 50th year of franchising. Its first franchises were part of a 1964 acquisition (of 126 Speedee Mart stores) when 7-Eleven entered the California market. Before then, all of its stores were company-operated. Today, 80 percent of 7-Eleven, Inc.’s U.S. stores are franchised. 7-Eleven has stores for franchising in 30 mainland states. An interactive map on their webiste indicates where they are located. According to the U.S. Bureau of Labor Statistics, military personnel who served on active duty anytime since September 2001 can face greater employment challenges than civilians and older veterans. With a growing number of veterans facing a difficult job market, veteran entrepreneurship offers an
opportunity to start a successful business in which retired and honorably discharged service personnel can use their skills to control their financial destiny. 7-Eleven has been recognized as a military-friendly company for its veteran hiring practices, military veterans’ franchise program and a charitable mission to support military families. Military veterans serve in every level of the company from top management to field staff to store associates. The retailer also has supported military-assistance organizations including Hire Heroes USA, the USO, Reserve Aid, Warrior Gateway and Operation Mend. Named one of the Top 100 MilitaryFriendly Employers on a list published annually by G.I Jobs magazine, 7-Eleven was the only food retailer included and, among all retailers on the list, ranked third. Business publications like Forbes and Entrepreneur rank 7-Eleven among the top franchise opportunities. For more information: www.franchise.7-eleven.com
Are you ready to take control of your own destiny, fulfill that dream and have a better quality of life with financial security? Consider owning a franchise. A franchise allows you to be in business for yourself but not by yourself, with a proven business system that gives you endless support and branding.
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B y Renae Chr istine
6 Takeaways for Stay-at-Home CEO’s
Veteran Entrepreneur Shares Tips for Balancing Business and Family “Don’t answer the phone if you’re not ready to speak; if it’s important, the caller will leave a message.”
Being young and inexperienced can be intimidating for stay-athome entrepreneurs, but it doesn’t mean you’re making mistakes, says veteran businesswoman Renae Christine. Fresh out of college at 23, she thought she’d done something wrong when the wholesaler for her stationery company assigned her a personal representative. “In reality I was doing so much business with them that they wanted to ensure my satisfaction,” says Christine, a serial entrepreneur who has created dozens of successful home-based businesses for herself and others. She shares practical how-to advice in her new book, “Home Business Startup Bible,” (http://richmombusiness.com/). She was the busy mother of a 2-year-old and she’d just returned home – to the mess left in the wake of last-minute packing – when the rep showed up, she says. “I was mortified when he walked into my
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home/business and he was shocked, but the experience marked my first success as an official business,” she says. “It was actually the beginning of a great relationship.”
“You have to think of your new business as if you are your own boss. Would you ask your boss for a day off so you can sell cupcakes?”
Though it turned out well, Christine says her first years in business would have been much happier if she hadn’t had to deal with her own painful feelings of selfdoubt, embarrassment, guilt, etc. “The good news is – no stay-at-home entrepreneur needs to feel that way,” she says. She offers these tips for maintaining professionalism in business without sacrificing – or feeling guilty about – family.
1
Don’t apologize for your kids
We need to stop apologizing for our kids’ squawks and energy while we’re on the phone or in meetings. Kids are kids and to them, Mommy is Mommy and their home is their home 24/7. If anything, we can all learn from our children and lighten up during business chats.
2
Don’t pick up the phone when you’re not ready
I used to think I had to say yes to everyone, including the telephone whenever it rang. Don’t answer the phone if you’re not ready to speak; if it’s important, the caller will leave a message. Consider an online chat system for your website; I use a free one via craftysyntax.com.
3
Add a disclosure message to your callanswering service
My disclosure indicates the quickest way to reach me, which is chat or email. Email is quickly becoming everyone’s preferred method of communication anyway, and this way, we all have
a digital trail that will help us stay organized.
4
Say no and don’t apologize for it You can say no to lots of things,
like PTA meetings and extra bake sales
for your kids’ school. When you say yes to those things, you are saying no to
your business. You have to think of your new business as if you are your own
boss. Would you ask your boss for a day off so you can sell cupcakes? Probably not.
5
Pick a neutral location If you need to have business meetings in person, I suggest
choosing a neutral place like a coffee
shop. Don’t allow them to come to your home and, if you can avoid it, don’t go
to their office. If you’re negotiating, this can give them a home-field advantage.
6
Just say it
I continue to attend trade shows. When I tell companies that I work from home, they might give me an indifferent attitude and hastily move on to chat up a brick-and-mortar owner. I simply take my business elsewhere; I know the value of my business, and so will another vendor.
About Renae Christine Renae Christine is the owner of By Renae Christine, a company that has launched several successful businesses and has helped launch dozens more for others. A journalist, she’s known for her popular YouTube videos (search Rich Mom Business channel), which use humor and pragmatism to advise others who want to launch home-based businesses. She recently published “Home Business Startup Bible,” (www.richmombusiness. com), a comprehensive how-to guide. Christine is also the founder of the Rich Mom Business University and has come into popular demand as a speaker.
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V e t er ans in Fr anchising
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V e t er ans in Fr anchising
Creative C olor s I nter national
Creative Colors International
Assist Deserving Veterans According to the Bureau of Labor Statistics, there are currently more than 130,000 unemployed post 9/11 veterans across the U.S. To assist these deserving veterans in developing job skills and finding rewarding careers, the management team and I decided to launch a new campaign through our franchise Creative Colors International (CCI) – the industry leader in on-site repair, restoration, cleaning, protection and dyeing of leather, vinyl, fabric, plastic and carpeting. In collaboration with USA Cares – a charity that provides financial and advocacy assistance to post 9/11 active duty U.S. military service personnel, veterans and their families – the campaign aims to provide honorably discharged military
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“This two-part program is our small way of giving back to the veteran community as we expand throughout the nation.” veterans the opportunity to become CCI technicians and to also award one qualified military veteran a free franchise. It is an honor to be able to provide job opportunities to deserving military veterans as a reward for their service and dedication to our country. With nearly ten percent of CCI franchisees coming from a military background, we understand firsthand the value veterans bring as franchisees thanks to the strong personal and professional attributes acquired during their time of service. We’ve found that military veterans’ personal and professional qualities align perfectly with franchising due to their results-driven nature, discipline to follow
a proven system for success and desire to help others, which are all important traits we look for in our technicians and franchisees. Many military veterans have found success investing in a franchise through CCI as they thrive in an environment where they’re able to serve others, and this two-part program is our small way of giving back to the veteran community as we expand throughout the nation. The following is a testimonial by Jose del Llano, a military veteran and franchise owner/technician of CCI of Orlando, Fla.: “Coming out of the military, I was looking for a career that would allow me the chance to utilize the leadership and
About USA Cares USA Cares is a nonprofit 501(c)(3) organization that helps post 9/11 military families bear the burdens of service with financial and advocacy support. Its mission: To help with basic needs during financial crisis, to assist combat injured Veterans and their families and to prevent private military home foreclosures and evictions. interpersonal skills I acquired during my service. CCI offered a strong support system where I could learn by following people who had already succeeded. If you are skilled in communication and self-discipline, and have the passion to do whatever it takes to flourish, joining CCI will allow you to discover your full potential and find success in a lucrative, multifaceted industry.” Starting Monday, July 7, 2014 through Friday, August 15, 2014, we encourage honorably discharged, post 9/11 veterans nationwide to apply to become full-time CCI technicians as a means to start their new careers by joining forces with successful existing franchise owners. Each trainee will need to first complete a two-week Certified Technician Training Program at CCI headquarters in Mokena, Ill., in which USA Cares will cover travel expenses. Training will begin on September 2, 2014 and end on September 12, 2014. Additionally, CCI’s nationwide network of franchisees has agreed to donate 5 percent of total profits made on Tuesday, September 2, 2014 as part of the campaign. During CCI’s Certified Technician Program, veterans will learn the key tasks and responsibilities of a technician, including how to repair, restore and recolor tears, burns, rips and cuts in all types of leather, vinyl, fabric and plastic materials that can be found in the furniture, automotive and commercial markets. CCI technicians are responsible for providing these services on a mobile basis while developing and maintaining customer accounts, preparing customer invoices and providing weekly reports to the company, as well as distributing marketing literature
and explaining the value of CCI’s services/ products to customers. For veterans who attend training and are interested in becoming technicians, if there are no existing franchises nearby, USA Cares will kindly help relocate the veterans to the nearest CCI franchise. For a list of regions where CCI is currently located, visit http:// www.wecanfixthat.com/locations/. Following training, CCI will launch the second part of our veteran employment initiative with a franchise giveaway contest. All newly trained veteran technicians who are interested in becoming franchise owners will be given the opportunity to apply for a free franchise territory, and the winner will be chosen based on professional, personal and financial qualifications, as well as interviews. We felt it was important to launch a two-part program rather than solely offer training or the franchise giveaway contest so we’re able to provide job opportunities for as many veterans as possible. With CCI being a mobile business, it’s also much more reasonable than many other franchise concepts in terms of financial upkeep and operations which will put the resulting veteran technicians and franchisee in an ideal position for success. The RSVP deadline for honorably discharged, post 9/11 military veterans nationwide to sign up for CCI’s Certified Technician Program is Friday, August 15, 2014. While USA Cares will be providing travel expenses for veterans to attend the two-week training, all applicants will be responsible for covering their own lodging, food and any other miscellaneous costs during training
USA Cares has responded to over 50,000 requests for assistance with over $11 million in indirect-support grants. Military families anywhere in America can apply for assistance through the USA Cares web site, www.usacares.org or by calling (800) 773-0387.
About the Author Mark J. Bollman has been the President and Director of Creative Colors International since May of 2000. He started out as a service technician for J&J’s Creative Colors in 1990. Following, he served as a Field Consultant from September of 1991 to November of 1992. From there, he was promoted to Director of Operations until January of 1995, and then further raised to Senior Vice President from 1995 to 2000.
About Creative Colors International Launched in 1991, the Creative Colors International (CCI) franchise system was created through its affiliate, J&J’s Creative Colors, the original industry leader in refurbishment techniques and systems. J&J’s Creative Colors was founded in 1980 by Jim and JoAnn Foster. Today, both companies continue to be family-owned and operated by the second generation Foster family. Catering to the abundance of upholstered items in every home, business and vehicle, CCI is the ultimate in on-site repair, restoration, cleaning, protection, and dyeing of leather, vinyl, plastic and fabric. For more information visit www.wecanfixthat.com.
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focus by Rob S w ystun
D r. G’s Weig ht Loss & Wellness
San Antonio doctor
finds success teaming up with Collaborations between doctors is common and for Dr. Oemil Rodriguez, teaming up with Dr. G has been a lucrative partnership. The Dr. G in question is actually Dr. G’s Weight Loss and Wellness and Rodriguez has been a franchisee of the business since the end of March this year, officially opening the franchise in June. She discovered Dr. G’s when her cousin was a client with the business and then learned that Rodriguez was running her own small clinic that focused on nutrition, internal medicine, fitness and weight loss. Her cousin called her up and told her about Dr. G’s and the work the company was doing in the Dominican Republic and this immediately caught her interest. After talking to a few different representatives of Dr. G’s, she decided that it would be a perfect fit for her clinic and the Dr. G’s people agreed. “They say that word of mouth is the best marketing, and for me, that is true,” Rodriguez said during a recent interview from her franchise in San Antonio, TX.
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Partnering with Dr. G’s has taken her nutrition consultation business to the next level, she noted.
“If I follow the franchise formula, it will be successful, and I’ve already seen it happen.”
Rodriguez was in a good position to capitalize on the Dr. G’s model, as it complements her background. She holds a Master’s Degree in Healthcare Administration and decided to focus on fitness nutrition. Plus, her husband is a doctor of internal medicine. The couple takes a holistic approach to weight loss, and the Dr. G’s model fit well with this approach. Once Rodriguez signed her franchisee agreement, the process went swiftly, she said, with multiple conference calls and training sessions happening in quick succession. Rodriguez completed a week of online training and a week of hands-on training in Florida focusing on sales and the Dr. G’s products. Dr. G’s representatives also came and inspected her current facility in San Antonio to ensure it would be useable for their franchising model and liked what they saw. The week that her facility opened as a Dr. G’s franchise, Rodriguez also received training there in San Antonio with actual clients. “Dr. G’s for us is like another product, another service that we provide for our patients,” Rodriguez said. By following the Dr. G’s model, the doctor added, she’s already seeing success in the short time she’s reopened as an official Dr. G’s franchisee, signing up new clients on an almost daily basis. The Dr. G’s people have been in close contact with her in these first few weeks, Rodriguez said, calling frequently to check
how everything is going and answering any questions that pop up. Buying a Dr. G’s franchise has allowed Rodriguez to be a more focused business woman. Prior to joining the franchise, she said, she felt like she was spinning her wheels, not really knowing if what she was doing was working. Having the proven Dr. G’s marketing plan to follow has been a boost to the business.
Rodriguez said Dr. G’s would be a good fit for anyone who is interested in purchasing a franchise that helps people lose weight in a healthy manner. “Dr. G’s is perfect for the health conscious entrepreneur who cannot afford a more commercialized franchise,” she said.
“If I follow the franchise formula, it will be successful, and I’ve already seen it happen,” Rodriguez noted.
Rodriguez compared the Dr. G’s franchise network to a family and said she feels like they helped her realize her dream of owning her own successful business and would recommend it to anyone who wants to open a health related franchise.
By having a formula to follow that has already proven to be successful, she added, she hopes this will eventually allow for more free time away from the business, as well.
For more information please visit: www.drgsfranchise.com
This is one collaboration between doctors that seems to have worked perfectly for everyone involved.
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focus by Rob S w ystun
Page 69
SPOTL IGH T O N SERV ICE by Gina Gill
Def initive Sof t wa re Solu tions
a definitive view meaning it can be accessed from anywhere at anytime. A franchisee can stay in communication with the franchisor easily and can manage their franchise from their home, while on vacation or anywhere in the world. The software offers franchise management with a user-friendly concept. With a simple layout and easy navigation system, any franchisee will find it beneficial and easily functional. It also provides a simple setup and installation.
Definitive Software Solutions (DSS) is a software development company made up of highly dedicated and experienced employees who create software solutions for companies. Located in Nebraska, the company has been operating for 14 months and launched its initial product line called Franchise View, which appeals specifically to franchises and their owner operators. Its first development is a cloud based Franchise Resource Management tool exclusively for franchisees and franchisors. “We have a product called Franchise View that was developed specifically for the
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franchise industry that allows franchisees to manage their franchises or their specific locations from a centralized web application,” explained Brett Burch, lead developer of the software and a cofounder of the company. The objective is to provide software and services that offer franchisees a means to manage their stores or companies. DSS focuses on furthering companies and their initiatives while supporting a business to achieve goals in less time or create new technological objectives that increase the results of that company. It is a franchise management system that gathers daily operational information from an unlimited amount of franchise sites. The information is collected from a company’s PC based POS system all through a secured network that follows all procedures and policies. Franchise View is completely cloud-based,
Multiple franchises can be managed easily, or one franchise can benefit from managing their location and keeping an organized view of the results and operations of their territory or location. “We provide custom software development services and we can customize any type of solution for potential customers, being the franchisee or franchisor. We own the Franchise View software, so we can customize that as well providing additional information specific to any type of customer,” said Brett. “If there is custom reporting that they need, we can provide that to them because we are the makers of the software.”
DSS provides training and constant support for all users “All of our support services and the application itself is 100 percent web based. Customers can work with us via the web page, through traditional email or over the phone,” said Brett. “We provide online training. We have a call center and a
“The objective is to provide software and services that offer franchisees a means to manage their stores or companies.”
support center. We have an online support system with frequently asked questions and things of that nature.” Services are designed to support users, channel partners and technology partners. Although Franchise View is user friendly, sometimes larger companies may require additional training and custom training is available online or on-site. Custom training includes administrator training, end-user training and train the trainer. Training is available via webinars or at a Franchise View designated location. There are currently 150 separate user accounts. DSS has a small full-time staff with a variety of diversified skills and experience who are able to remain flexible to all clients. An easily functional system allows anyone to be able to apply it to any particular franchise. The Franchise View software is also extremely flexible and can adapt to and accommodate any organization. The staff is well versed in government liaison, project management, software engineering, software architecture, contractual management and various other positions. The team is able to accommodate any needs necessary to increase the value of a client’s business. Franchise View allows the client to view company data anytime or anywhere, which is near real time. It provides inventory management, location information and store communication. There are shared calendars that allow visibility throughout all locations. The software provides
project and activity tracking and reporting and centralized file management across stores.
and by including clients throughout the
Definitive Software Solutions provides state of the art technology that is consistently up to date. They remain dedicated to being an organization that employees want to work for, and companies cannot work without.
clients, as well as customers outside of the
DSS also remains focused on customer satisfaction through successful results
procedure. DSS believes in creating wellestablished relationships with their own organization.
DSS is now a member of the International Franchise Association, which has created
extra support for DSS and Franchise View. For more information please visit www.dssfirst.com
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SPOTL IGH T O N SERV ICE by Gina Gill
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ex per t advice
Michael Daigle, Partner, Cheng Cohen LLC
couples therapy A FRANCHISE LAWYER’S PERSPECTIVE Purchasing a franchise is not just starting a business. It’s entering into what all parties hope will be a long-term relationship between the franchisor and the new franchisee, many of whom plan to use this new venture to build the business and life of their dreams. Focusing on the business itself is, without doubt, critical. But equally critical is a constant focus on and commitment to
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the relationship, from beginning to end. Franchisors and franchisees must establish a solid foundation for the relationship, enter into it with eyes wide open, and, like all “couples,” be willing to devote the time and effort to rationally and reasonably make it through the rough patches. This foundation is necessary if they want to stay together long term or “part as friends” if the relationship becomes irretrievably broken.
Establishing the Foundation The existence of a “pre-nup” is no longer surprising in modern relationships, particularly where one or both parties have had some measure of success prior to entering into the relationship. It may seem illogical to plan for the end of a relationship before it officially begins,
but that is precisely one of the functions of the franchise agreement. Some of the most controversial and sensitive points negotiated prior to signing the agreement are the “what ifs” – what rights does either party have to end the relationship and what happens to the business if that unfortunate trigger is pulled. Often, perhaps because the default and termination provisions typically appear later in the agreement, these are among the last points the parties negotiate before saying “I do.” The goal, of course, is that neither party enters the relationship with the intention of ending it. But if the franchise agreement is the “pre-nup” of that relationship, both parties are wise to suffer the awkward discussions and negotiations to achieve a degree of certainty around what happens if the relationship does end.
“Too often in franchise relationships, the franchisor and franchisee - like the husband and wife in a marriage - lose track of each other.” Sustaining the Relationship Communication is the fuel that drives every relationship. Franchise systems have countless stress points that can easily undermine the relationship, and many - if not most - are rooted, not in the fundamental viability of the business itself, but in the parties’ neglect of their relationship through failure to communicate. Too often in franchise relationships, the franchisor and franchisee - like the husband and wife in a marriage - lose track of each other. The franchisor might be too focused on selling franchises, opening new units, attracting private equity, or expanding or contracting its own infrastructure. The franchisee may be struggling with the types of issues that plague all business owners - attracting and retaining the best employees, increasing and reinvigorating the customer base, delivering quality products or services, dealing with supply chain challenges and simply paying the bills. Because they become focused entirely on their own respective challenges and lose focus on the relationship itself, the franchisor and franchisee can easily let communication lapse, neglect and lose respect for each other, grow apart, and ultimately see no value in continuing the relationship. It is, therefore, critical that the parties make conscious efforts to communicate, touching each other on a regular basis. Wise franchisors and franchisees insist on regular, periodic in-person check-points to take each other’s pulse, to re-establish, reinvigorate and re-affirm the value that each gets from the relationship, and to identify and resolve any issues that might be starting to percolate before they become relationship-breakers. This exercise should be modeled from the chief executive level down and, where necessary, the parties should not hesitate to bring in a
neutral voice to facilitate the discussions. Fundamentally, they each need to make it a priority to either solidify the relationship and swiftly resolve issues when they arise, or agree on a plan to amicably part ways.
The End Does Not Have to Mean War No matter how much one party might want the relationship to continue, it almost never works unless both parties are committed. If, despite their hard work, the franchisor and franchisee encounter irreconcilable differences, they must ultimately accept the realities while recognizing that there is benefit from ending the relationship amicably rather than wasting their respective resources on costly litigation. For the franchisor, an amicable resolution will remove impediments to protecting and expanding the brand’s goodwill in the marketplace, allow for a quick and seamless transition of the business, and avoid costly diversion of focus, resources and momentum. The franchisee, on the other hand, has opportunity to extract value even where the facts, franchise agreement and applicable law support an involuntary end to the relationship. By helping the franchisor avoid costly litigation, bad publicity and disruption of its business, the franchisee might, for example, be able to negotiate compensation for the value it created in the franchisor’s brand and for facilitating a seamless transition of the business. The franchisee might also be able to preserve value for itself by getting the franchisor to allow it time to find a qualified buyer rather than shutting the business down or having the franchisor exercise its purchase option. Absent ammunition in the franchise agreement itself, the franchisee’s real
Michael Daigle
bargaining chip is its willingness to cooperate with the franchisor for a swift, seamless transition with as little disruption to the business or harm to the brand as possible.
Happily Ever After, Whatever the Outcome In many respects, franchises truly are like marriages. They require work and attention. They require communication and commitment from both parties. And, despite everyone’s good intentions and hard work, many franchise relationships do end up in “divorce court.” When that happens, both franchisor and franchisee have an opportunity to walk away with value if they are able to remove unproductive emotions and work together toward a rational end to the relationship. Michael Daigle is a partner with the Chicago law firm of Cheng Cohen LLC (www.chengcohen.com). Having spent most of his career as chief development and legal officer for several high profile, aggressive-growth franchisors, he has created franchise development programs and negotiated and documented franchise transactions around the world. He speaks and writes frequently on the topic. For more information contact michael.daigle@chengcohen.com.
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Cafes, Coffees and More Than 300 Stores
The new store design represents the franchise opportunity for Red Mango moving forward, and is an elevated cafe concept that expands the brand well beyond its world-famous froyo and smoothies. That has franchise owners like James Taglia, who opened the 300th location, excited about the connection Red Mango is making with more customers wanting more healthy choices. A resident of Oak Park, Taglia became a fan of the brand when he and his wife were introduced
James Taglia
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to Red Mango frozen yogurt by their children. Looking for a business to own and operate, Taglia not only joined a leader in the frozen yogurt arena, but also became a pioneer for where the chain is headed. Complete with a stylish juice bar, more seating, and an expanded menu, Red Mango is now serving fresh coldsqueezed juices made-toorder, as well as flatbread sandwiches, wraps and salads under 500 calories. The experience extends the healthy profile of the brand known for its award-winning yogurt and smoothies, and invites business for more occasions beyond frozen treats. But the company is not done yet. Red Mango also introduced a line of coldbrewed iced coffees and lattes across the U.S., garnering national attention with business media for its evolving options for customers. Following the launch, the company was featured on Bloomberg TV, interviewed by Fortune, and profiled in the Dallas Morning News about graduating beyond the frozen yogurt world. “In understanding how important the taste of coffee is to American consumers, we made the key decision to use only roasted Lavazza beans, grinding them onsite at each store location, and utilizing this coldbrewing system,” said Jim Notarnicola, vice president of marketing for Red Mango. “Across the United States, we will be the first large franchise organization to use this artisanal method.”
Art theof Brew
the
Red Mango is growing. And so is its menu. This summer the chain celebrated its 300th location with an Open House tour and free tastings at Red Mango Yogurt Cafe & Juice Bar in Oak Park, IL.
Available at particip
ating stores.
RED MANGO name,
design and related marks are trademarks ©2014 Red Mango, of LLC. All rights reserved. Red Mango, LLC.
Brew Taglia is already Arist thesomething Being first enjoying. He says his Red Mango Yogurt Cafe & Juice Bar is a hit with customers. And existing Red Mango franchisees agree. Some 85 percent of Red Mango locations that don’t have lease restrictions will remodel their locations to the cafe format. Those updates should be completed by early spring. the
prof ile
Red M a ngo
of
With more than 320 open locations across the Red Mango chain and rapid development in the pipeline, the company motto to “Treat Yourself Well” will be doing just that for more franchise owners and loyal customers long into the future. For more about Red Mango, visit www.redmangofranchise.info.
ex per t advice
Tariq Farid, Founder and CEO, Edible Arrangements
From Connecticut to Qatar:
Take your Business Beyond the Borders Tariq Farid
As any franchise-based business begins to grow and expand, its leaders are confronted by the question of where in the world to move next. I have always believed that mastering your “hometown� is crucial before taking the leap to new markets. For my business, this meant realizing success where I first opened up shop, in East Haven, CT, then branching out across the U.S. before seeking the right overseas markets.
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Because I come from Pakistan originally, making the jump to UAE, Saudi Arabia and other countries in the Middle East and Southeast Asia, was a “natural” move for me. These are also markets which are typically seen as risky or difficult for some other American businesses, but made sense strategically for me since I am so ingrained in the culture and business environment. A first step in aligning with franchisees abroad is to do the homework necessary to determine if there’s a market for the product. Next, ask yourself, does a franchisee business model already exist or do you need to educate potential business partners? When picking a location, start where you are already culturally familiar and comfortable, and know the language - this will help make conducting business much easier. Upon emigrating from Pakistan to the U.S. as a child, I was fascinated with American culture, values and products. I found inspiration in movies, television and cultural figures. I learned great lessons by using motivational figures such as Henry Ford as role models. I soaked up my new home culture like a sponge and vowed to succeed in the United States first. Now 34 years and 1200 franchises later, moving beyond borders is SOP for me and my company. Here are some wise words to keep in mind when moving your business beyond borders:
“Obstacles are those frightful things you see when you take your eyes off your goal.” Don’t lose sight of the prize—the United States. Before moving into international markets, make your mark in the U.S., since it presents the most abundant opportunities to franchise. At the end of 2013, the U.S. was home to 757,453 franchise establishments. If it’s not working here, fix it before making any moves. This solid foundation will enable you to more easily
“sell” your concept to foreign investors who can’t resist the cachet of American brands.
“The only real mistake is the one from which we learn nothing.” I was young and inexperienced when I opened my first franchise and I made several missteps and mistakes, but I learned from them. One in particular yielded this advice: listen to your franchisees and incorporate their advice into decision-making. Early on, franchisees learned our company’s system and operations from a clunky three-ring binder which was constantly updated and not a great tool for new or existing employees. Upon receiving complaints about it, I developed a “secure terminal” and supplied video content that could easily be updated. The technology was embraced by employees and is now a stand-alone product, nXstep®, which we sell to many other franchise businesses.
“My best friend is the one who brings out the best in me.” You can compare finding the right business partners to getting married—it’s a relationship, not a sale. We take our time “courting” potential franchise partners ensuring we have met all their needs and “covered all the bases” required of a franchisee. We course correct and make adjustments for the cultural differences from country to country. Distance may make it harder to manage businesses overseas, so the perfect partner you can trust is crucial. Make sure you both have the same goals and vision for the future of the business. When searching for the right partner, I often recommend starting with the “airport test”. Ask yourself —if you were on a plane next to this person, would you wish the flight was delayed or lasted longer because of how much you enjoy spending time with them? If the answer is yes, you may want to add them to your short list! You will say no to a number of suitors and that’s okay. The health of
the brand and business is more important than the quick buck. Invest the time to find the “right” partner to avoid damaging the brand in the future.
“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.” Even after you’ve established a strong business in the U.S. and successfully penetrated the international markets overseas, there will always be more for you and your colleagues to learn. Before I went overseas, I did my research and learned by interviewing other professionals in international business; querying them about the mistakes they made and getting their advice. Keep in mind, those with experience were once in your shoes and can offer insight which you can often apply to your own situation. I learned from another international franchisor that it is ok (and at times better) to walk away from a market until you can come back strong. He also taught me that the most important decision you will make in expansion is the partner not the market. The right party (with proven resources) will make you successful in almost any market but this is not as easy as it sounds! Try to look deeper than the excitement of going international and the associated profit potential. Be realistic and proceed with caution. The bottom line is that no one business strategy suits all companies planning to go abroad, but gaining a few pieces of advice from someone who has “been there, done that” is a good way to start. Tariq Farid is the founder and CEO of Edible Arrangements, which has has over 1200 franchise locations in 49 states and 14 countries. He also is the founder of several other successful businesses including software company NetSolace, which simplifies IT systems for franchise companies and other businesses in order to increase productivity.
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ex per t advice
Andre Kay, CEO & Chief Marketing Officer, Sociallybuzz
Driving Local Customers to Your Business using
Google My Business “Millions of consumers use Google to find and make trusted decisions about local businesses.” automatically upgraded to Google My Business dashboard. Google My Business makes it simpler than ever to make sure your local business information can be easily found across Google, including on Google Maps, Google Search, and Google+. Andre Kay
As all local businesses know, having your business listed on Google is very important. Millions of consumers use Google to find and make trusted decisions about local businesses. Having an updated Google My Business listing with updated information, photos, hours and description is very critical. If you previously used Google Places for Business or Google+ Pages dashboard to manage your business information, you’ve likely noticed that your account has been
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1
Verify your business
To add your local business to Google My Business, you must have a mailing address and meet their quality guidelines. Local Google+ pages are designed for businesses that serve a particular locale. Local restaurants, hotels, dentists, hardware stores, plumbers, QSRs or repair shops, for example, are eligible to create a local page. To make sure the basic information you submit is accurate, Google will ask you to verify it first by entering a verification code that will be sent to either your business address or phone number. You will have one or two verification options. You can also choose to skip verification and return to the Google My Business dashboard to complete the process later.
2
Optimize your business information
After you’ve signed up for Google My Business, you’ll be able to add a description for your business, hours of operation, contact information, and photos. Make sure the business information is complete and accurate. • Make sure your business location is entered correctly on the map so users can find you easily. You can drag the map marker to your exact business location. • List your authoritative and official business website on the local Google+ page, since Google uses information from your website to help improve search results. • Add information such as opening hours and payment types to help users choose among search results. • Of course, be sure that your business name, physical address, and phone number(s) are correct. Choose the most appropriate, specific categories for your business.
• Verification by phone
• Pick a category from the list of suggestions to help Google to show your business for the right searches.
Once you’ve verified, you may see a banner asking you to review your information and make any final changes.
• Don’t be afraid to choose specific categories instead of broad ones. The important thing is that the categories
• Verification by postcard
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ex per t advice
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ex per t advice
Andre Kay, CEO & Chief Marketing Officer, Sociallybuzz
are accurate and describe your business well. Google’s search algorithm makes sure that users looking for “Book Stores” will see businesses in more specific categories like “Used Book Stores,” “Comic Book Stores,” and “Rare Book Stores” too. Establish a strong, accurate presence on the web. • Google improves search results by aggregating information about your business from all over the web. Make sure information about your business on third-party sites is accurate, and try to contact the respective site directly to correct any inaccurate information. • Encourage customers to review your business by clicking Write a review on the local Google+ page.
3
Reviews
Reviews in Google My Business give business owners a way to see how customers are reviewing their business across the web. As a business owner of a verified business, you can: • Read reviews for your business from around the web.
Franchising USA
• Respond to reviews from Google users.
not appear immediately on the page.
• Check analytics to get an overview on how and where your customers are evaluating your business.
Business owner responses allow you to build relationships with customers, but they’re also public.
Read reviews
Business owners can also use the Sociallybuzz app [http://www. sociallybuzz.com/app ] to receive and respond to reviews directly from their mobile phone.
• Sign in to Google My Business dashboard. • Scroll to “Reviews” and click Manage Reviews. Note that your business needs to be verified in order to respond to reviews. You’ll see a Review inbox listing any reviews Google users have left for your business as well as a compilation of snippets of reviews written about your business. The Reviews analytics tab includes information detailing where users have evaluated your business, and the average score of reviews of your business. Tips for responding to reviews Engaging with the people who give you feedback can be a good way to get to know your customers and what they think about your business. Note that you’ll be posting as the page for your business when you reply to reviews, and that your reply will be posted publicly. Replies to reviews may
The ultimate goal is to have the best Google My Business listing by keeping your listing up to date and providing important information to potential consumers. Andre Kay is CEO and chief marketing officer of Sociallybuzz, which exists to help franchise owners grow their business using social media. By helping them reach relevant customers, build customer loyalty, mange reputation and increase revenue. We protect relationship with their customer, create effective campaigns, manage their social channels and online reputation 24/7. Read the company’s blog: (http://sociallybuzz.wordpress.com/), follow it on Twitter and “like” its Facebook page.
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