Franchising usa T he ma g a z ine for franchisees
VOL 02, ISSUE 11, sept 2014
$5.95 www.franchisingusamagazine.com
Great American Deals
Re volutionizing the D a i ly D e a l I n d u s t r y
main feature
children’s products and services
LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
OPPORTUNITY IS KNOCKING! GET YOUR FOOT IN THE DOOR BEFORE IT CLOSES!
Join the fastest growing pizza chain in America!* Our footprint fits your space. Non-traditional concepts available.
Visit LittleCaesars.com or call 800-553-5776 *Based on 2013 store growth. Š2014 LCE, Inc. 45494
Page 3
Franchising usa T he ma g a z ine for franchisees
FRANCHISING USA VOLUME 2, ISSUE 11, sept 2014 president: Colin Bradbury. colin@cgbpublishing.com
Publisher: Vikki Bradbury. vikki@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Editorial team: Rob Swystun Stephen Kelly Gina Gill
Advertising Sales: advertising@cgbpublishing.com
Production: Samantha Klimecki. usaproduction@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: Great American Deals Michael Silber, CEO and Mark Vannuki, COO
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:
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
from the
Publisher As the seasons change from Summer to Fall, so may your thoughts about your working life and the direction it is currently taking. If you are considering starting your own business, you have already taken the first step by opening this, our September issue which is filled with stories about the many franchising opportunities available. If you are an existing franchisee, we offer you many articles, tips and advice to help make your business better. On the cover this issue we have Great American Deals who are revolutionizing the daily deals industry with their community based approach. And what is a community without children? Our regular feature by Rob Swystun this month looks at the myriad options to choose from if you are considering a franchise that offers products and services for children. For every service that caters to adults, it seems there is a kid size version. We look at two great options - Rockin’ Jump and Fresh Healthy Vending but there are so many more to explore. As always our experts are on board with some great advice. Tariq Farid from Edible Arrangements ensures we take a second look at hiring Millennials by highlighting their business savvy skill set and with suicide prominently in the news, Jennifer Sewell from Ceridian looks at understanding the signs and how to help employees and colleagues at work. Our ever popular Veterans Supplement has Happy and Health Products on the cover and we talk to one of their many successful franchisees. James Mingey from Veteran Business Services takes us on a journey from Battleground to Business, and there are some great profiles on successful veterans turned franchisees. I hope you enjoy this month’s read and may I wish you all success in your future endeavours. Happy reading and good luck. 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.
Franchising USA
f ra nchising usa
Contents september 2014
On the Cover 10 Cover Story
Great American Deals
28 Feature Article
32
20
Children’s Products & Services Franchising
14
28
In Every Issue 06 Franchising News Announcements from the Industry 28 Feature Article Children’s Products & Services Franchising 39 Veterans Supplement Happy & Healthy Products
Franchising USA
f ra nchising usa
12
Expert Advice 12 Developing Employees from the Ground Up Andy Roe, SurePayroll 14 Using Buyer Personas to Improve Your Franchise Business Adam Heitzman, HigherVisibility 20 Would I Hire Me? Your Question Before Becoming a Business Owner George Knauf, FranChoice 26 Time to Franchise Small Business Advocacy Elliot Richardson, Small Business Advocacy Council
34 Suicide. Understanding the Signs and How a Progressive EAP Can Help Jennifer Sewell, Ceridian 64 The Hidden, Business-Savvy Skill Set of Millennials Tariq Farid, Edible Arrangements
22
32 The Discovery Day Experience Jason Power, Shelton & Power
70 Introduction to Snapchat for Franchises Andre Kay, SociallyBuzz
Spotlight on Service Franchisee in Action
58
62 Nexus Online Media
16 Rockin’ Jump
Franchisor in Depth 22 Fresh Healthy Vending 66 The Growth Coach
Focus 36 WOW 1 DAY PAINTING 58 The Interface Financial Group Franchising USA
f ra nchising usa
what’s new!
YogaFit Studios Continues to Stretch Franchise Numbers Lift Brands, parent company to Snap Fitness and five other wellness concepts, sold six new YogaFit Studio franchises, which will be opened in the Minneapolis-St. Paul metro area. YogaFit Studios is a premier yoga franchise that is available to entrepreneurs for as little as a $35,000 investment. Lift Brands expects to sell 1,000 franchises for the studios in the next five years. “Since we began offering franchise sales in late July, we have been fielding hundreds of inquiries from people interested in the YogaFit Studio concept and intrigued by our new model, which offers yoga at an unprecedented price point for the consumer,” said Peter Taunton, Lift Brands Founder and CEO. “We’re especially excited about the scalability of this model and the fact that we can offer those interested in owning their own yoga studio on a viable platform complete with financing assistance.” With an initial investment to open a studio as low as $89,000 and Lift Brands financing programs, a studio can be owned with a cash investment as low as $35,000. An estimated 20 million Americans practice yoga and spend nearly $6 billion annually in classes, equipment, DVDs and more. For more information visit: www.yogafitstudios.com
AAMCO Announces the Creation of AAMCO University AAMCO, the world’s largest chain of transmission specialists and leader in total car care, has announced the opening of AAMCO University, a stateof-the-art training facility in Newnan, Georgia.
industry is essential to providing the best
The center, near Atlanta, will provide
the AAMCO chain, resulting in a great
AAMCO employees and franchisees with best-in-class curriculum within its hightech training facility and repair center.
AAMCO President and Chief Executive Officer Brett Ponton created the vision for the training center. “The quality of
the AAMCO technician skill set in the
increasingly complex automotive repair
Franchising USA
service and experience for the consumer,” says Ponton. “The new training facility and enhanced curriculum at AAMCO
University speaks to our commitment of providing first-class service throughout customer experience.”
The main goal of the school is to provide the training and tools for employees
to continually deliver quality service.
The curriculum will also demonstrate the progression needed to navigate a
successful career path at AAMCO at any level of employment.
The facility will offer both lecture and hands-on technical instruction for up to 60 people at a time including a simulated repair shop. Plans to open the facility are scheduled for January 2015. For more information visit: www.AAMCO.com or www.AAMCOBlog.com.
Lo-Lo’s to Start a Soul Food Revolution After more than a decade of success in Arizona, Larry “Lo-Lo” and Rasheedah White, founders of Lo-Lo’s Chicken & Waffles, are ready to start a soul food revolution. The couple has partnered with local real estate veterans, Mike Anderson, Bret Anderson and Dave Sellers, to launch the original concept as a national franchise brand. The Lo-Lo’s Chicken & Waffles concept was started in 1997 when Larry White perfected his fried chicken recipe in the back of his grandmother’s restaurant and opened his first location in Phoenix, Arizona. The casual dining restaurant features scratch-made, savory, fried chicken and sweet, syrupy waffles, and is now offering the authentic model as a franchising opportunity for qualified single and multiunit candidates. Lo-Lo’s Chicken & Waffles is the firstto-market, national soul food franchise
perfectly positioned for expansion across the United States. There are currently three open locations in Arizona – Scottsdale, Phoenix and the Phoenix Airport. The brand is looking to grow in the California, Texas, Oklahoma, Missouri, New Mexico, Arkansas,
New Pearle Vision Franchisee Has Ohio in His Sight
Louisiana, Tennessee, North Carolina, South Carolina, Georgia, Florida, Alabama and Mississippi markets. To learn more about ownership opportunities with Lo-Lo’s Chicken & Waffles, visit www.lolosfranchise.com
Pearle Vision, one of North America’s largest and most trusted licensed optical brands, has announced that it has signed an agreement with Bill Noble to assume ownership of 10 locations throughout Ohio. Noble, a proud graduate of the West Point Military Academy and a former UH–60A Blackhawk pilot, has an extensive background in retail, specifically in operations, and has worked for wellknown brands including The Limited, Toys-R-Us, Wal-Mart and Famous Footwear. It was the support of Pearle Vision’s leadership team that encouraged Noble to make the leap into the franchise world and assume ownership of multiple Pearle Vision locations throughout Ohio. Pearle Vision has a significant legacy in the industry and has continued to outpace competitors by evolving to meet patients’ changing needs and providing quality products and services they desire. With 600 centers located throughout North America, the company offers best-in-class eye care provided by neighborhood doctors who are skilled optometrists, a principle created by Dr. Stanley Pearle in 1961. Most recently, Pearle Vision ranked #112 in Entrepreneur’s 2014 Franchise 500, making a 48-point increase from the 2013 ranking. Prospects interested in exploring re-licensing or new development opportunities should call 1.800.PEARLE.1 or visit http://licensing.ownapearlevision.com
Franchising USA
f ra nchising usa
Page 7
f ra nchising usa
what’s new! immense and intense growth for Red Roof successful economy hotel chains in the country. Red Roof has reinvented the economy lodging sector by listening to customers and providing an enhanced experience at a value price. With innovations like its successful NextGen® renovation program and the Red Roof PLUS+® brand extension attracting repeat visitations, Red Roof’s consumer-centric strategy has produced superior results, as demonstrated by unprecedented growth in occupancy and double digit year on year growth.
Red Roof Inn® has announced it has signed 39 hotel agreements in 2014, with a robust number of additional properties in the pipeline. It’s an over 350 percent increase from the same time last year and showcases Red
Roof’s immense and intense growth in the past year. Red Roof, with its aggressive and strong network of 378 properties in 40 states, has a strong mix of franchise and corporate owned locations and is one of the most
The newly added franchise properties are located in various markets throughout the Unites States. Twenty-six of these properties have opened already and the brand anticipates a total of fifty new openings by yearend. The additional franchise properties will reflect the brand mix of both Red Roof and Red Roof PLUS+. For more information: Website: www.redroof.com
FRSTeam Continues Growth Fabric Restoration Service Team, Inc. (FRSTeam), the leading national provider of fabric restoration services, has announced the addition of its newest franchise, FRSTeam by Sun Cleaners in Carroll, Ohio. Serving Southeast Ohio, West Virginia and Eastern Kentucky communities, this is FRSTeam’s third Ohio location and 55th Licensee location. FRSTeam by Sun Cleaners is owned by industry veterans Nick and Ashley Babamov who have been in the textile restoration business for 15 years. “It will be nice to be part of a larger team and have the support of an entire organization,” says Nick Babamov, owner and president of FRSTeam by Sun Cleaners and second-generation dry cleaner. “We are looking forward to fine-tuning our processes and doing business under a nationally recognized and respected name.” The Babamovs join FRSTeam’s network of 54 licensees serving 48 states across the U.S. and Canada committed to providing
Franchising USA
personalized service and proven results in the fabric restoration industry. “Our organization knows that the best way to expand nationally is to team up with experienced and like-minded professionals,” says FRSTeam President Jim Nicholas. “We are thrilled to have a new team on board that shares in our vision and dedication to quality service.” To learn more, visit www.frsteam.com
The Melting Pot Targets Houston and El Paso, Texas for Franchise Expansion The Melting Pot® Restaurants, Inc., the world’s premier fondue restaurant and a leading polished casual dining franchise, announced that it is actively seeking franchisees to expand its presence throughout the Lone Star State, naming El Paso and Houston as target markets for future franchise development. The Melting Pot currently has one restaurant in Houston and now has an opportunity for the right franchisee partner to open an additional location in the market. The brand also aims to develop the first Melting Pot restaurant in El Paso. In addition to Houston, The Melting Pot currently has four Texas restaurants located in Arlington, Austin, Dallas and San Antonio. “The Melting Pot concept is backed by 30 years of experience in franchising and nearly 40 years of brand recognition, making this an ideal business opportunity for entrepreneurs,” said Dan Stone, vice president of franchise development for Front Burner Brands. “We have a great reputation in Texas and the state is home to some of our top performing units. We’re looking forward to building upon our brand recognition and expanding our presence throughout the state.” To learn more contact Ashley Pollard, franchise development manager for The Melting Pot, at 800-783-0867 ext. 152 or apollard@meltingpot.com or visit www.meltingpotfranchise.com.
Educator Turned Remodeler Named ‘Woman of the Year’ by National Franchise
Denise Borkowski, who spent 30 years as a Burbank public school teacher, has been named “Woman of the Year” by the DreamMaker Bath and Kitchen remodeling franchise. She and her husband Glen own the DreamMaker franchise in Orland Park, serving customers throughout suburban Chicagoland.
Denise is a giver. She has worked with Habitat for Humanities and is currently helping to remodel a local women’s crisis shelter, in addition to putting in 40-plus hours each week helping run the franchise. While many home remodeling companies – especially those serving upscale clients – have struggled in an increasingly competitive market, DreamMaker’s sales grew 23 percent in 2013, nearly seven times faster than the overall remodeling industry.
honesty and community service,” says Denise. “All franchise owners and staff operate within a ‘Code of Values.’ This means that we conduct our business completely above board. No bait and switch, no shortcuts. We help our customers decide what is best for them, and that includes determining if we are a good fit for them and they for us — it’s not just about seeing how quickly we can get someone to sign a contract. We set expectations and live up to them.”
“What drew us to DreamMaker is its corporate philosophy, which emphasizes
For more information visit: www.dreammakerfranchise.com
Franchising USA
f ra nchising usa
Page 9
cov er sto ry by S tephen Kell y
G reat A mer ica n Deals
Revolutionizing the Daily Deal Industry The daily deal industry is a multi-billion dollar industry. Internet based marketing is not a new concept and the ecommerce business model has been around for about 10 years. The premise is that consumers are offered substantial discounts by merchants for products and services through a deal website. The website then displays the deal for a period of 24 hours or more, delivering customers to these merchants, and in return the site receives a portion of
the revenue generated. Groupon was the game changer, who in 2008 stepped into the then flatlined market, and soon became the second fastest online company to reach a billion dollar valuation. One of the primary reasons for the downfall of the early innovators was the lack of website traffic. Additionally, most computers were not mobile and there was a disconnect between consumers and the marketplace. Other problems arose with the daily deal business model because it seemed to promote single use customers for the merchant and irrelevant deals were being sent to the consumer such as advertising a discounted gym membership to someone that lives 100 miles away. With the advent of social media, shopping
online with mobile devices and geo targeted advertising, consumers can now see a product or service they like, capture the savings and purchase the discounted goods and services they desire. Although revenue forecasts are projected to see strong growth in the coming years these companies must utilize social media and mobile computing while creating value for both local customers and local businesses. A company that is taking a community based approach to this growing industry is Great American Deals, led by CEO, Michael Silber and COO, Mark Vannuki. They are revolutionizing the concept by bringing it to the heart of American Commerce and for the first time in the history of the category they are franchising! It is their hyper local formula, the community conscious “Giving Back” component and the dedication to local businesses that makes the Great American Deals approach a real game changer. Pat Sajak, the iconic 30 year host of television’s most popular game show, Wheel of Fortune, is a company founder and managing partner that ads celebrity appeal to the brand. Mr. Sajak believes strongly in the operational model that gives back to the community, supports local business and aims to revitalize Main Street America in a digital age. “Not only do we look for the ideal community but we are eager to find the ideal franchisee within that community,” says Mark Vannuki who also serves as Director of Franchising. “The community must have an abundance of diverse locally owned businesses, a strong school system and residents who have a willingness to become engaged in the
Franchising USA
community. As a franchisee you are woven into the fabric of the community. You are probably on the school board or the PTA, or serve on a local charity, you know the local businesses and are a long time resident with a desire to do more for your neighborhood. When it comes to desirable deals we offer a huge range: from handyman services to elaborate dinners, family bowling packages to spa treatments and the list goes on. “The daily deal mix is very important and our franchisees aim to cater to the tastes of the local consumer base. As far as what size communities we like to target, we find that our business model works extremely well in areas with 200 – 300 thousand residents,” Vannuki explains. The concept has been growing rapidly since the company started franchising in early 2013. With 10 franchises in Southern California, Great American Deals is hopping borders and currently expanding nationally. Franchisees take part in a thorough training program at the Great American Deals headquarters in Beverly Hills learning how to launch, operate and grow their franchise. The franchise fee is $35,000 for a turn-key customized website, mobile app, marketing tools, association with the highly visible brand, ongoing
“As a franchisee you are woven into the fabric of the community… you know the local businesses and are a long time resident with a desire to do more for your neighborhood.” franchising support and full disclosure of the hyper local formula.
To date, over $185,000 has been put back into local communities.
“The website is the hub of the offering and we want it to have a local feel” comments Michael Silber. The site includes constant updates of local content such as sporting event schedules, where to find the closest famers’ markets, activities for kids and lots of other events and information that appeals to people within the community which ultimately draws more people to the site.
“People get a lot of daily emails sent to them” says founder Michael Silber. “With our hyper local approach we are bringing locals to businesses nearby and that creates customer retention and customer loyalty…the businesses that we work with love this. With our business model and the right franchisees, we can expose a lot of small businesses to a large amount of people who live and work in the community.”
Great American Deals’ commitment to community organizations does not stop at commerce. One of the pillars of their approach is to provide support for local schools, community charities and non-profit organizations. The ‘Give Back’ program allows consumers to have one dollar of their purchase donated to a school or charitable organization that they select. This program not only benefits local organizations that badly need funds but it creates customer loyalty for Great American Deals and merchants love it too!
As the industry continues to grow with competitors vying to sign up merchants for one of a kind deals, small to medium sized businesses must make decisions on a daily basis whether to run a daily deal and if so, which site? The answer is not yet clear, but as Great American Deals continues to deliver relevant deals to local consumers, and support local businesses in a community conscious manner, it will become a top choice. For more information visit: http// franchising.greatamericandeals.com
Franchising USA
cov er sto ry by S tephen Kell y
Page 11
ex per t advice
Andy Roe, General Manager, SurePayroll
Developing Employees Regardless of the type of franchise you own, developing your employees is going to be one of your most important functions as a leader. How do I know this? I start with my own personal experience. I started off as a frontline sales representative and now I’m heading an organization with more than 230 people. I was able to get here because the organization I work for believes in giving employees the tools they need to get where they want to go – if training in a certain area can help you advance, they want you to take it. As a franchise owner, whether you’re managing high level professionals or people just starting out in their careers – maybe even in their first jobs – your willingness to develop their skill sets and help them move up will be good not only for their futures, but for your business. In a recent survey from CareerBuilder, one in five workers said they plan to change jobs in 2014, and 45 percent said it was because they are dissatisfied with advancement opportunities at their current company. Of those people happy with their jobs, one in three said it’s because they have a “boss who watches out” for them.
Franchising USA
from the Ground Up What it Really Means to Develop Someone Career advancement doesn’t always come in the way of a big promotion. Sometimes it comes in the addition of a new skill or a whole new area of responsibility that makes them more valuable to your company, and gives them an opportunity to move forward in their careers. Does this make them more likely to leave your company? Maybe eventually, but think of it this way: if they’re not learning in the first place, they’re likely going to look for something else. The other part of advancement is going from a frontline employee – someone who simply executes someone else’s direction – to having some management and strategic responsibilities. It’s great to have well-trained employees who can execute your franchise’s business plan. However, as the franchise grows you’re going to want to give some the ability to do more than that. Maybe they’re managing one employee or one small part of your business, but it’s something for them to build upon, as well as relief for you.
One on One Conversations To get the most out of your employees and give them the most value for working under you, you have to have real conversations with them. Find out not just what they’re capable of, but what they
“Of those people happy with their jobs, one in three said it’s because they have a “boss who watches out” for them.” want to do. How else can they help you besides just what you hired them for? Having frank conversations with the people who work for you will also tell you the most about your business. What’s making customers unhappy? Where are the biggest inefficiencies? How is morale? Building that personal rapport with your staff will give them the freedom to come to you as well. Sometimes the best opportunities for employees are the ones they create themselves, coming to you as the leader and letting you know where they can and want to improve.
The Value of Learning Yes, a paycheck is important, but it’s far from the only way to maximize employee engagement. I believe what really drives employees is the ability to learn, grow and change. As a franchisee, you know that having ownership in a business is a special thing. Your workers want to feel that ownership too. The more you can build them up, the greater the chances they’ll work hard and be engaged. And when it’s time to hire new employees, you’ll have begun building the reputation as a great place to work, because of the interest you take in the
Andy Roe
people working for you. 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 with 1-10 employees. You can follow Andy on Twitter @AndrewSRoe.
Franchising USA
ex per t advice
Page 13
ex per t advice
Adam Heitzman, Co-Founder and Managing Partner, HigherVisibility
Using Buyer Personas to Improve Your Franchise Business Understanding your audience is crucial for every type, size, and style of business, and a franchise company is no exception.
How Buyer Personas Work
You want to have a clear idea of who your ideal customer is and then use that information to fuel the decisions you make about landing pages, the content you create, the promotions you advertise, etc.
A buyer persona is when you look at the habits and patterns of everyone in your audience and then group them together to create one fictional, generalized person. Many companies (especially franchises) will have a few different personas because it can be difficult to fit an entire audience into just one group. The goal is to have a smaller number of personas, but staying true to your audience is the most important thing. Some companies will have as few as two or three personas, while others will have as many as 10 to 15.
It takes some effort to look at your data and then map out all of your customers/ clients, but fortunately there are plenty of tools and strategies out there to help.
In general, you usually find trends in terms of what they search before they buy, how long they search before they buy, and how they form their decision. Demographic and
Franchising USA
geographical considerations should also come into play when creating each persona (more on this later). Why they’re so great for franchises: Buyer personas are something that every type of company can benefit from and use, but they are particularly great for franchises for a few reasons. First, franchises typically have more complicated audiences because they cover different locations, all with different types of people in each. This makes understanding audience even more difficult. Second, and on that same note, franchises oftentimes will break their audience up by geographic location and ignore other factors, which can be a huge mistake. Creating buyer personas forces franchise companies to see their audience in ways that aren’t quite as obvious.
“Remember that you want to not only ask questions about demographics and location, but also ask questions about their buying preferences.” How to Create Buyer Personas The best way to create personas is to talk with your audience directly, but this doesn’t mean just your own customers. You want to talk with those who are in your target audience, and this can oftentimes mean you need to branch outside of your contact database. Below are a few different options to help you create these personas:
1. Interview customers about what they like about your product/ service. It is unrealistic to try and talk with every one of your customers in person, so “interviewing” online is a great option. There are several different ways you can make this happen: • Have an option right there on your homepage to take a survey or answer questions so that visitors can get involved, and let your existing customers know they can visit your survey or questionnaire to help. • Having a system where visitors can create a profile account can help give you a lot of information about each person. • If possible, have a team of people call anyone who signs up for your service. • Use Google Consumer Surveys to get answers directly from a targeted audience. Remember that you want to not only ask questions about demographics and location, but also ask questions about their buying preferences. Ask how they like to shop, what is important to them about your industry, how long they shop, etc.
2. Look through your Google Analytics and marketing funnel to find trends about leads or how customers find your content.
This is of course a huge way to get information about your audience, but sometimes it can be tough to determine which personas fit into which aspects of the data you get from Google Analytics (GA). Therefore, the last point should be completed first. Once you have analyzed that data you can move to your GA data and marketing funnel and see where each type of person might fit. Once your information is segmented into your marketing funnel, look for trends to see if you can create even more personas.
3. Ask for the information you need for your personas, on different forms on your website. Once you’ve done a little bit of research with the first two suggestions, you might get a better idea about what you really need and want to know about your audience. Ask for this information on forms on your website. For example, if your personas are leaning toward the time spent searching for your products/ services, ask each lead for information about how long they spend online researching before buying, on your forms.
4. Always talk with your sales team. Your sales team talks with your customers and target audience on a daily basis. Although they may not be knee-deep in analytics, they have a lot of insight about trends happening and can probably segment different types of people fairly easily. Who are they interacting with the most? What questions are being asked together by each person?
5. Consider using HubSpot’s Create Buyer Personas for Your Business guide. HubSpot offers a free and customizable template to help you answer questions about your audience and create different
Adam Heitzman
personas. I highly recommend using this tool in addition to the tips above to really get the full picture. Not only will the tool help you find your personas, but it will help you lay them out in an organized template to show the rest of your team.
Using Buyer Personas to Benefit Your Franchise Business Buyer personas help you understand your audience and the different groups they fall into, which can make it easier for you to create content, landing pages, advertisements, email marketing campaigns, etc. tailored to the specific needs and behaviors of each different group. Sometimes it can be hard to distinguish between audience members and you end up only catering to one group, so looking over your audience and market trends is a way to make sure you’re covering all your bases. Many buyer personas can also work directly with editorial calendar services and plugins so that you are showing the right content to the right persona. This will definitely be more work for you because you have to create more content, but because that content is personalized your results should skyrocket. 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: Website: www.highervisibility.com
Franchising USA
ex per t advice
Page 15
fr a nchisee i n act io n by Rob S w ystu n
Rock in’ Jump
taking the ultimate leap Former finance professional jumps on board with trampoline park franchise Rockin’ Jump franchisee Steven Rodier took the ultimate leap of faith when he left his job as a product manager for a financial data and software company to open a trampoline park in Trumbull, CT. Inspired by his daughter’s participation in trampoline gymnastics, Rodier purchased the franchise in July 2013 and was open and running by May 2014, complete with wall-to-wall trampolines, a foam pit, basketball hoops and a dodge ball arena - everything you could want in a trampoline park. Rodier was already committed to the idea of opening a trampoline park. The dread of spending the rest of his life behind a desk in a corporate job was his driving force to find something in the recreational and active lifestyle industry. While researching a
Franchising USA
“I wanted to do something fun and family oriented that would also be a good workout for people.”
specific trampoline manufacturer, that manufacturer gave him Rockin’ Jump as a reference. When Rodier called Rockin’ Jump for a reference check, the representative he spoke with told him the company was about to start franchising. What drove Rodier to get on board with Rockin’ Jump was the sense that they were really looking for franchise ‘partners’ rather than just people with money, and had shown early on how prepared they were to provide him with the comprehensive support he wanted. “I thought it was a good idea to go with them to save myself some of the headaches and mistakes that I’d probably be doomed to make,” Rodier said during a recent interview from Trumbull. “I wanted to do something fun and family oriented that would also be a good workout for people,” he explained. Although he estimates that he currently works more hours than he did at his former job, he doesn’t notice the added hours because he’s having fun at work now, the franchisee said. He also knows that as the park gets established, he’ll be able to work fewer
Franchising USA
fr a nchisee i n act io n by Rob S w ystun
Page 17
fr a nchisee i n act io n by Rob S w ystu n
Rock in’ Jump
“Once Rodier had made the decision to go with Rockin’ Jump, they were in touch with him daily and helped him with every aspect of getting started.”
hours and decide when and how much he wants to work.
Getting Started Once Rodier had made the decision to go with Rockin’ Jump, they were in touch with him daily and helped him with every aspect of getting started. Finding a suitable location was the hardest part, he recalled, but they trusted him to work with his local real estate representative to find one because he knew the area well. Once he narrowed it down, he told Rockin’ Jump about the location and their people provided him with reports about the demographics of the area and whether it would likely be a good location. They also gave him recommendations and support throughout the negotiating process. “So they’re there every step of the way to help you with that process,” Rodier said. And once the location is set, Rockin’ Jump also helps out with recommendations for contractors and vendors. The company’s reputation in the trampoline industry is so well-known, the franchisee said, that
Franchising USA
most trampoline vendors know them and know what a franchisee will need as soon as they call. While the park was being set up, Rodier and the manager he hired flew out to Rockin’ Jump’s headquarters in Pleasanton, CA for two weeks of training. After that initial training, the company representatives have also made themselves available for any and all questions Rodier has had since he started with them. They have answers, recommendations and advice for their new franchisees, he said, and he gives the company his stamp of approval. “I would highly recommend it. Whenever I have an issue or a question or just want to talk, they’ve been quick to respond,” he said. “I think the system they have in place is excellent.” For Rodier, the leap of faith to Rockin’ Jump certainly did rock. To inquire about Rockin’ Jump’s franchise opportunities: Call 877-878-3920 or visit http://franchise.rockinjump.com
Page 19
Franchising USA
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
“Would I Hire Me?”
Your Question Before Becoming a Business Owner own funds to back yourself in business raises different fears and concerns than it does when someone else’s money is betting on your ability to deliver in a job. Is it fair to compare hiring yourself to a company hiring you? Yes! Either way someone is betting on your ability to produce at the job in question.
George Knauf
“Would I hire me?” While it may seem like a very rudimentary question it can be the biggest introspective question that any prospective business owner asks before they either make the final decision to start a business or retreat back to the perceived security of a job. If a job candidate was to ask themselves if a hiring manager at a large corporation should hire them the answer would invariably be “YES!”, but committing your
Franchising USA
In the case of taking a corporate job you will likely know many of the parameters of that role from your past experiences and what you learn from the potential employer during the interview process. But we know that corporate America is sometimes unpredictable. You may find that the job you accept there has unexpected duties, hours or stress. So, you will have to adapt and adjust along the way to better perform in the job and to meet your personal goals outside of the job. Alternatively, if you were to look at going into a franchise business your approach will be different, but only slightly. Your past experiences will inform you on what key roles in business entail; sales, management, marketing, finance, etc. You will evaluate the team you have to help you in the areas where you are not the specialist needed for the specific role. You will evaluate your support team from the franchisor. You will analyze the success comparable peers have had in the same role you are considering. You will do an exhaustive evaluation of the company and the opportunity. As you are doing your investigation the franchisor should be going through the same kind of process with you to make sure you are a good fit for their
system. Their goal should be to only offer franchises to those they sincerely feel can succeed in the business. Their success from their relationship with you ought to be closely tied to your success with their system. With both parties looking for every possible reason to say no, if you come to a point at the end of a franchise investigation where there is an opportunity to move forward then you have hit the point where you get to try to cross the ultimate personal hurdle. One of my closest mentors, Jeff, told me years ago that it is a bit like when we climbed the ladder for the high dive at the pool as a kid. First you sit in the shallow section of the pool watching the big kids go off the high dive, and loving it. This is your proof that it works and how to do it safely. Then you start jumping in from the side of the pool, but realize you are not really having the same experience that big kids are. Then your day comes You climb out of the shallow end of the pool and dripping wet you go over to the high dive and grab the hand rails. You feel like everybody at the pool is watching you. Slowly you climb the ladder, feeling like you are climbing Mt Everest! Now it’s time, step by cautious step you walk to the end of the board and look down. At this point you have two options while you stand on the high dive as a kid: 1. Jump to the center of the pool as you have seen it done successfully before and take your seat in the big kids club.
“Now it’s time, step by cautious step you walk to the end of the board and look down.” 2. Slow turn and climb back down the ladder without jumping. Either way you will likely get to the ground safely. But the first will feed your sense of confidence and your love of adventure and trying new things as it changes your perspective a bit. The later will likely feed your self-doubt which could keep you from ever climbing the ladder again. We know, as do the franchisors, that not everyone will take this leap from employee to employer (could they? YES! But, they won’t all have the confidence). Many will see how others did it and slowly climb the ladder as they do their investigation of one, or more, franchises. They will walk out to the end of the high dive board as they do validation calls and visit the franchisor at Discovery Day. All along the way hearing their own self-doubts and the advice from
well-meaning friends and family telling them never to take a risk, but rather to stay in a job where the rug could get pulled out from under them any day. Some will get to the end of the board and turn around, just walk away because of their own self-doubts. Now, I would have to ask anyone that goes through a franchise investigation, if you have confirmed that you have the requisite skills to be successful and that the franchisors system has worked for countless others then why would you not hire yourself to perform that job? If your in-depth investigation found either that the franchisors system did not work or that your model (skills, strengths, etc) did not fit them then have your advisor, if you are using one like us, find companies that are a better fit. But let’s assume that there did exist a
proven franchise system and you have built the skill set you would need in your years as an employee. If that was the case then we are back to self-doubt and fear. Here is the best solution I have found at this juncture: Make sure you did your homework and trust you will hit the center of the pool when you jump! Because if you would not hire you, who should? Mr. Knauff 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: Website: www.georgeknauf.com
Franchising USA
ex per t advice
Page 21
Fr a nchisOR I N DEP T H by Rob S w ystu n
Fresh H ealthy Vending
g n i d n e V y h t l a e H h Fres d o o F k n u J p a w Looks to S d o o F h t l a e H r o f
Leading the way in replacing junk food vending machines with healthy alternatives is the appropriately named Fresh Healthy Vending. People won’t find chips, pop and candy bars inside Fresh Healthy Vending machines. Instead, they’ll find an assortment of healthy snacks, like baked or popped chips (rather than the traditional fried chips), granola bars, protein bars, fruit bars, packaged fruit, fruit cups, coconut water, natural organic diet sodas, protein shakes, cold press juices and a variety of iced teas. Founder Nick Yates says Fresh Healthy Vending has been in operation for fourand-a-half years and started franchising in June 2010. The company now has 185 franchisees spread out over 45 states in the United States, plus Canada, Puerto Rico and the Bahamas. Although the main service for Fresh Health Vending is vending machines, it has recently introduced customized Fresh Micro Markets. These are kiosks that consist of a wall unit with its own refrigeration unit that can sit in the break room of a business. They are completely self-check-out. “We just built that program and launched it about six weeks ago,” Yates said during a recent interview from the company’s headquarters in San Diego.
Franchising USA
where it operates vending machines
One is that they all have a desire to do something socially responsible within their community.
Yates plans on expanding Fresh Micro
And the other …?
and beyond. And, similar to the vending
“It just so happens that all our franchisees are families,” he noted.
The company has a corporate market and micro markets in San Diego and
Markets throughout southern California machines, the micro markets will be available for franchising, as well.
Ideal Franchisee Fresh Healthy Vending’s franchisees are a diverse lot, Yates said, but they
do have a couple of things in common.
Currently, the entire country is open for franchisees. The company rarely sells exclusive territories, Yates said, and now with the Fresh Micro Markets starting, there are even more opportunities available because the vending machines and micro markets can exist within the same territory
without competing, as they would be in two different types of locations. The minimum package is 10 vending machines for a $110,000 investment, Yates said, and the average franchisee has 14 machines.
USDA Creating Demand While the Fresh Micro Markets are perfect for a corporate environment, the vending machines tend to go into schools, and they are an increasingly hot commodity, the founder said, now that the United
Franchising USA
fr a nchiso r i n dept h by Rob S w ystun
Page 23
Fr a nchisOR I N DEP T H by Rob S w ystu n
Fresh H ealthy Vending
States Department of Agriculture (USDA) has started its Smart Snacks in Schools program, which aims to replace junk food in schools with healthy snacks. “Most of our vending machines find their way into schools or education related facilities and especially now with the USDA enforcing nutrition guidelines on vending machines within cafeterias within schools, the doors to even more schools are currently opening up for us,” Yates said. “There have been so many that have been forced to remove the junk food and they’re looking for a replacement for that.” Along with schools looking to replace their out-of-date junk food vending machines, corporate wellness is increasingly becoming more important, as corporations realize they can decrease absenteeism and increase productivity by offering employees better snacks and drinks, Yates pointed out.
“Although the main service for Fresh Health Vending is vending machines, it has recently introduced customized Fresh Micro Markets.”
Industry Leader While other vending machine companies are starting to jump on the healthy bandwagon, Yates said, Fresh Healthy Vending pioneered the concept so most of the industry’s innovation has stemmed from the company. Fresh Healthy Vending’s franchising model is comprehensive, as the company supplies the machines, secures locations for those machines on behalf of the franchisee, and has an E-commerce platform in place for fulfillment of product orders. All snacks and drinks are delivered nationwide for the franchisee free via the company’s distribution program. The company also advocates for franchisees via the FreshandHealthy.org website, which aims to convince decision makers in schools, businesses, YMCAs, hospitals and other locations that it would be a good idea to replace their junk food vending machine with a healthy one or at least give people the opportunity to choose between the two different types of machines. “Our model is very well thought out and it just comes from being in the business for so long,” Yates said.
Franchising USA
Training As for training and support, all franchisees have to attend a two-day Fresh Healthy Vending University course in San Diego where they spend time with each department head learning everything about the business. Franchisees are then introduced to an online education portal called Steps to Success, which is a 90-day accountability program that franchisees are required to go through. It helps them understand all the different components of the business, helping them to be more successful during those crucial first 90 days of operation. Plus, the company hosts the Feel Free Fresh Franchisee Facebook Forum that all franchisees can access to communicate with each other and share best practices and ways to avoid mistakes. “Product tips, technical tips, accounting tips, relationship building tips, all of those things are discussed every day in real time among our franchisees,” Yates said. They can also use the forum to
communicate with department heads at the main office and ask any questions they have. And, for technical support for the machines themselves, Fresh Healthy Vending also works with a network of vending distributors that work with their machine manufacturer. This network provides labor support and technical assistance for the machines nationwide. For those who want to support Fresh Healthy Vending, but who don’t want to become a franchisee, the company is also publicly traded on the Over the Counter Bulletin Board under the stock symbol VEND. With the new USDA regulations and health mania sweeping the nation, there has never been a better time to become a Fresh Healthy Vending franchisee. For more information on Fresh Healthy Vending, the Franchise Program, or to receive a free healthy vending machine in your school or business, visit www.freshvending.com or call toll free 888-902-7558
ex per t advice
Elliot Richardson, President, Small Business Advocacy Council
Time to Franchise Small Business Advocacy Small business owners and entrepreneurs create jobs, support their local communities and spark innovation. Simply put, small businesses are the engine driving the U.S. economy. Franchising USA
Lately, it seems policymakers fail to recognize the pivotal role small businesses play in our economy. Politicians pass legislation that burdens the small business community while failing to acknowledge, let alone address, their concerns.
Association, in 2007, there were 36,106 franchised businesses in Illinois, employing over 400,000 individuals. While there is often a well-known trademark on their doors, these are small businesses.
The small business community has taken a stand in Illinois. No longer willing to sit on the sidelines, small business owners have coalesced and become deeply engaged in the political process. Small business owners from both political parties, diverse communities and varying industries, have come together to advocate for the small business community.
Franchisees are primarily small businesses. They are often independently and family owned. While Illinois franchisees may be associated with larger corporations, they face many of the same obstacles as other small businesses.
According to the International Franchise
Elliot Richardson, CEO of the SBAC delves into the key issues that the small business community, franchisees included, are working towards in Illinois.
“Small business owners and entrepreneurs have also unleashed the power of critical mass and by working together, have lowered costs and gained access to benefits often reserved for larger enterprises.� Lowering Excessive Fees Small businesses in Illinois are often subject to excessive fees which negatively impact their ability to compete, inside and outside, the state. For instance, Illinois Limited Liability Company (LLC) fees are the highest in the nation at $500 and far exceed those paid by corporations. By contrast, it costs only $175 to form a corporation. Annually, Illinois LLCs must pay a $250 renewal fee to the state; far higher than the $100 corporations pay. Business owners and entrepreneurs that form LLCs must contend with an array of other excessively high fees. Small business advocates across the state have grown tired of waiting for politicians to lower LLC fees so they have hired a lobbyist, drafted legislation and are aggressively working to bring them down. This past year, legislation, supported by the Governor, that significantly lowers the initial LLC filing fee passed the Illinois Senate without opposition. While the bill was not enacted last session, in 2015, the small business community intends to pass legislation lowering all LLC fees. Reasonable filing fees will stimulate the Illinois economy, create jobs and counter the perception that Illinois is a difficult place to own and operate a business.
Affordable Health Insurance Several large health insurance carriers have dominated the Illinois market for years. This has stifled competition and essentially placed small businesses at the mercy of a few major health insurance companies. Illinois small businesses have seen their premiums significantly increase, eroding their bottom lines and causing employees to go without coverage. Many small businesses endured significant
annual increases long before the passage of Obamacare. Three years ago, the small business community had enough and began looking for new and innovative solutions. Shortly thereafter, a non-partisan coalition of small businesses and entrepreneurs embarked on a mission to bring to Illinois a non-profit health insurance cooperative. Small business advocates drafted legislation, traveled to the state capital, took on special interests and through the power of critical mass, secured legislation permitting a cooperative. Not done yet, the small business community worked to form a cooperative in Illinois. Land of Lincoln Health is that cooperative and should bring badly needed competition to the market in 2015.
The Remarkable Power of Critical Mass Small business owners and entrepreneurs have also unleashed the power of critical mass and by working together, have lowered costs and gained access to benefits often reserved for larger enterprises. For example, the administrative costs of a 401(k) plan often deter small business owners from offering a retirement plan to their employees. By coming together, small businesses in Illinois have secured access to a multi-employer exchange that may lower these costs. Small businesses have banded together to secure a remarkable array of discounts. Realizing that as a collective group they have significant purchasing power, small business owners and entrepreneurs are leveraging one another to increase their bottom lines. Small business owners have also become increasingly empowered because they are impacting policy and politics in
Elliot Richardson
Illinois. Small business owners and their employees are often not able to make large campaign contributions to politicians. However, by speaking with a strong and unified voice, the small business community can leverage its numbers to hold politicians, from both sides of the aisle, accountable for their actions. Franchisees and their fellow small business owners are major job creators throughout the nation. In Illinois, and elsewhere, they can impact politics and the economy through targeted, common-sense, aggressive advocacy. The time has come for small business owners and entrepreneurs to start advocating for one another and their entire community. The time has come to franchise small business advocacy.
About SBAC: The SBAC is a non-partisan, member driven organization that promotes the success of small business through political advocacy, networking, support services and educational programs. For more information, visit sbacil.org.
About Elliot Richardson: Elliot Richardson is the president of the Small Business Advocacy Council. SBAC is a non-partisan, member driven organization that promotes the success of small business through political advocacy, networking, support services and educational programs. Elliot is also a commercial litigation attorney with the firm Korey & Richardson, LLC. The firm represents business owners in commercial and business matters.
Franchising USA
ex per t advice
Page 27
childr en’s pro ducts & serv ices
Featu re
e r u t Fea Children’s Products and Services Obviously, the most important thing for any parent is ensuring their children lead healthy, happy and safe lives. We want to help them grow up into smart, wellrounded individuals who are prepared to take on life and pursue their dreams. Parents’ dedication to the health, safety and happiness of their children is beneficial to those children, but can also be extremely beneficial to the savvy entrepreneur. By opening a franchise dedicated to children’s products and services, you can set yourself up for a lifetime of lucrative work making a real difference in the lives of children. As the economy improves, more parents are heading back into the workforce and while dual income families bring in more money, what they give up is time. Parents often don’t have the time to help their children with school work, do after school projects with them, spend time ensuring they get enough physical activity or do things like plan their birthday parties. However, even though parents can’t always find the time to do these things, they still want the best for their children and if they have the financial capabilities to pay for products and services to meet their children’s needs, they’ll willingly pay for them.
Franchising USA
Education One way parents try to give their children a leg up in this world is supplemental education to help them get into a better college or just to make sure they aren’t falling behind their peers in school. Parents’ efforts to give their children the best head start in life can turn into a good business opportunity for you with a supplemental education franchise. Math and reading are particularly popular educational subjects for children’s franchises to focus on, while SAT preparation, children’s physical fitness, music, art, science and even engineering also have dedicated franchises. And don’t think these franchises start where their regular schooling leaves off, because some of them are meant to start before children’s regular schooling begins at the preschool level. IBISWorld, in its report on the industry, says increasing research that expounds the benefits of early childhood education, continues to boost demand for child care services. It boosted demand so much, in fact, that industry revenue rose despite tough economic conditions during the recession. And, the report says, over the next five years, franchises will continue to benefit from rising demand, especially as more people return to work and require care for their children. The report further states the Child Education and Developmental Center Franchises industry is in the growth stage of its industry life cycle and its overall contribution to the economy is forecast to rise at an average annual rate of 4.9 percent through to 2019, outpacing overall GDP growth. It’s currently worth about $2 billion in revenue and grew at an annual rate of 3.1 percent from 2009-14.
Daycare A discussion of children’s franchises wouldn’t be complete without talking about daycare centers. As previously mentioned, more parents returning to work as the economy continues to improve, means more need for daycare facilities plus more disposable income that can be spent on daycare.
“There is an innate satisfaction that goes along with helping children grow, learn and develop.” This $48 billion industry saw annual growth of 1.2 percent between 2009 and 2014, according to IBISWorld, with standard child-care services accounting for 56.9 percent of the industry’s revenue.
Fitness While we love our children, sometimes that love can manifest itself in undesirable ways, like when we give them whatever they want to eat, resulting in relatively high rates of overweight or obese children. From 1980 to 2008, according to ChildhoodObesityStatistics.net, the prevalence of obesity in children aged 6 to 11 years tripled from 6.5 percent to 19.6 percent, while in teenagers it more than tripled from 5.0 percent to 18.1 percent. Parents’ efforts to reign in their kids’ weight can mean a good opportunity for you if you open a children’s fitness center. IBISWorld’s report on the Children’s Fitness Center Franchising industry says that it made it through the last five years relatively unscathed despite a couple of years of revenue loss during the recession. Increasing awareness of children’s fitness helped prop up the industry and as the economy continues to recover, the industry can expect to see larger revenue gains.
Safety The world can sometimes be a dangerous place, especially for children, so a business that helps parents keep their peace of mind
by helping to keep their children safe is welcomed by most parents. Children’s ID franchises use the latest technology to keep detailed profiles of children so they can be quickly and easily identified should they become lost, or worse. Other safety-related franchise opportunities include franchises that help parents procure safe and reliable baby equipment. Safety is always at the top of parents’ minds, so running a franchise that creates a safer environment for their children will make sure you are in high demand at all times.
Other Types of Franchises Education, daycare, fitness and safety aren’t the only types of children’s franchises, of course. These are children we’re talking about. They like to have fun! Children’s party stores, inflatable party equipment and toys all have franchise opportunities available. If you’re a photographer who also loves children, kids photography may just be your niche. You don’t have to go it alone. Start a franchise. And for every service that caters to adults, there is a kid-size version. You can find hair dressing shops and clothing retail chains that cater specifically to children. Even some of the unpleasant side effects of having too many children together for too long can turn into a lucrative business opportunity, with at least one lice removal franchise opportunity available.
Franchising USA
childr en’s pro ducts & serv ices
Page 29
childr en’s pro ducts & serv ices
Featu re If you think you are ready to take the plunge and open a children’s franchise, there are many websites with listings of franchises to go through.
“One of the best things about opening a franchise that focuses on children is that you’ll never run out of customers.” Steady Customer Base One of the best things about opening a franchise that focuses on children is that you’ll never run out of customers. The US Census Bureau says there are more than 74 million children in the country and that number is set to escalate to 80.3 million by 2030. In addition to the number of children rising, spending on children is also going up. Both parents and grandparents are spending more on children while children themselves now tend to have more personal money to spend on what they want. Housing, care/education and food are the three largest child rearing expenses. Estimates on how much it ultimately costs to raise a child from zero to 18 years old vary with income level, but range from $170,000 - $400,000. Children’s activities and care create their own mini-economy in the summer, with the New York Times estimating that American families spend about $16 billion annually on these items.
What You’ll Need Probably the most obvious trait that you need to run a successful children’s focused franchise is a love for being around and working with children. There is no doubt that they can be trying at times —
Franchising USA
especially other people’s children — but there is an innate satisfaction that goes along with helping children grow, learn and develop. Patience and an ability to roll with the punches and laugh at yourself if things go wrong will go a long way toward helping you run a successful child-focused franchise.
The area you live in will also determine what kind of franchise you should open. Obviously, a neighborhood that has a lot of children is important, but it’s also worth looking at the type of people moving into the area. If the area is attracting retirees and couples with older children, it might not be suitable for a children’s franchise. An area with young couples and young families with small children moving in would be ripe for a daycare or tutoring franchise. Most franchisors will be able to help you with this kind of research and help you determine if an area will be suitable for the type of franchise you’re interested in. Much like how children have their school homework to do, when thinking about any type of franchise, you will have a lot of homework to do, too. But, if you love working with children and want to feel that satisfaction of having played an important role in the development of their lives, a franchise focusing on children might just be the right move for you.
You should also be prepared to undergo some official scrutiny. Most territories require a government-mandated criminal background check for people who work with children to weed out any undesirables. Likewise, if you are going to need to hire staff, you’ll need to know what background checks are required in your area. You and your staff may also need specific certificates such as First Aid or certificates pertaining to your business. Your franchisor will likely know this information and be able to help you procure any certificates that you require. And, of course, you’ll need funding. Children’s franchises cover the entire spectrum of costs. A simple photography franchise may only have franchise fees in the hundreds of dollars while something like a fitness or academic center could require well over $100,000 in franchise fees.
Rob Swystun
Look out for our next special feature:
Home-Based Franchising
Page 31
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
Franchising USA
ex per t advice
Jason Power, Senior Attorney, Shelton & Power
The Discovery Day Experience
Those that are familiar with franchising know that a properly handled discovery day can lead to, in most instances, a higher close ratio. As a prospective franchisee, what can you do to be better prepared for a discovery day with your potential franchisor? Franchising USA
For most franchisees who are invited, a discovery day is a great way to get to know the franchisor and, in many cases, a first chance to meet the franchisor face to face. Discovery Days are also known as “Join the Team� days in some franchise systems as an attempt to make franchisee prospects who attend these events feel more at ease and ready to sign their franchise agreements. Overall, a discovery day is an opportunity for franchisors to show who they are and what their business is about to those elite prospects who are on the verge of signing up. It is also a way for franchisees to finalize their opinions as to whether they are willing to work with that
“Overall, a disco franchisors to sho
particular franchisor and staff for the next ten to twenty years of their professional life. When preparing for a discovery day, each franchisee prospect should have a list of topics and questions prepared for the franchisor. These topics and questions can include such things as asking the franchisor what is it about you that makes them think you would be a good fit for the franchise system as well as finalizing any negotiations that you have
“Being invited to a discovery day traditionally shows that the franchisor feels ready for you to become a part of their system.�
e
prove very beneficial. If you are alone, you will be given undivided attention and will be treated considerably different than if you have to share your time with multiple other buyers. On the other hand, if you are with multiple potential franchisees, you have the benefit of hearing questions that other people have which you may not have considered previously. Being invited to a discovery day though traditionally shows that the franchisor feels ready for you to become a part of their system. When you attend a discovery day, you should be prepared to sit through a brief introduction about the business, visit a local store to see the operations first hand, and possibly sit through an interview-type situation where the franchisor will ask you final questions to help them make their decisions as well. Take advantage of these opportunities to turn the table on the franchisor and interview them. Remember that you are making just as big of a decision as the franchisor is in signing the franchise agreement.
overy day is an opportunity for ow who they are and what their business is about.� been performing to make sure that you understand what you need to do to be a franchisee. Franchisors invest a lot of time and money into selecting the franchisees who will represent their business. After all, without franchisees, there is no franchise. It is important to know that franchisors are apt to only invite their top prospects to attend a discovery day. This may mean that you will attend alone or with multiple prospective buyers. Both methods can
What about those franchisors who do not offer a discovery day? Does this make them a bad franchisor? The absence of a discovery day does not mean that the franchisor is bad or that they do not care about their franchisees. Some franchisors feel they do not need a discovery day to evaluate their potential franchisees or they do not have the facilities to properly host one. If the franchisor does not offer a discovery day it is in the best interest of the franchisee to request permission to visit with one or more franchisees to experience a day-in-the-life of a franchisee type situation. If this occurs, be prepared to sign a lengthy confidentiality agreement to protect the franchisor and all of the franchisees from you telling all of the information you learned to others or using it on your own. By doing this type of nonconventional discovery day, you will learn the ins and outs of the business which can
Jason Power
help make your decision easier. There are many things that you will take away from a discovery day, such as an understanding of the business; additional information which may warrant the need for more time to make a thoughtful decision and speak with your spouse or other advisors; or, in some instances, the realization that this is not the business for you. No matter what your decision is after a discovery day, make it with confidence knowing that it was the best decision. Discovery days are beneficial to both the franchisor and the potential franchisee because it allows both to walk away confidently knowing that they made the best decisions for themselves, their families and their business. Jason Power is a senior attorney with Shelton & Power franchise law firm. Jason has been helping entrepreneurs review and negotiate franchise purchases since 2009 and is a regular speaker at the International Franchise Expo, West Coast Franchise Expo, Franchise Expo South and various other franchise expos where he gives tips on how to analyze and negotiate a franchise purchase. For more information: Website: www.sheltonpower.com
Franchising USA
ex per t advice
Page 33
ex per t advice
Jennifer Sewell, Vice President of Clinical and Quality Services, LifeWorks, Ceridian
Suicide: Understanding the Signs and How a Progressive Employee Assistance Program Can Help Suicide. A term that encompasses so much and in so many ways. There are statistics that attempt to explain its outcome and status in our society. There are emotions which come about when the topic is broached. And there is sheer reality when one occurs. Suicide is the act of deliberately or intentionally taking one’s own life. Suicidal behavior may occur in the form of a drug overdose to crashing a car to use of a gun. Death by suicide is rarely caused by a single event. In fact, it is usually the result of accumulating, complex
Franchising USA
circumstances or experiences which occur in one’s life. There can be a host of contributing factors with very few simple answers to the ‘whys’ which arise after the tragic loss. According to the Center for Disease Control and Prevention (CDC), the most recent year of data – 2011 –39,518 people in the U.S. reportedly committed suicide. Suicide ranks as the tenth leading cause of death in the United States with heart disease as the highest leading cause of death. It is estimated that each suicide intimately affects at least 6 other people such as family members, friends and coworkers.
Risk Factors: According to the American Foundation for Suicide Prevention, the most frequently cited risk factors for suicide include: • depression or bipolar (manic-depressive) disorder • alcohol or substance abuse or dependence • schizophrenia, borderline or anti social personality disorder • previous suicide attempts • family history of attempted or completed suicide • serious medical condition and/or pain.
Other factors can include a highly stressful life event such as losing someone close, financial loss or legal troubles. Often times, people who are contemplating suicide have done so episodically. They may think of suicide as an option to remove themselves from the psychological pain or ache, only to move back into a place of perceived wellness. As each episode presents itself, the suicidal thought may become more intense.
Warning Signs: Should you have the occasion to come in contact with someone who you believe may be thinking about suicide, listen carefully to what is being said and watch for changes in behavior. Often times, people contemplating suicide will give subtle hints about their intentions. When speaking with someone who is suicidal, listen for the direct and indirect message. They may be telling you about their intention to not be around in the foreseeable future. Messages such as “I won’t be back again” or “This is the last time that I will be here” can beg further clarification. Often times, the message is disguised, cryptic or encoded. Giving away prized possessions, not making future plans and/or making arrangements to give away pets are examples of possible hints of suicidal intention. Major changes in performance at work may be a warning sign. Formerly reliable employees may have trouble meeting deadlines, finishing projects, or working as part of a team. If they have been helpful and friendly in the past, they may appear intensely negative or withdrawn becoming non-communicative and decreasing social interaction. A lack of interest in life and work may also be seen. Some people may have trouble sleeping and thereby developing problems with punctuality. Depressed employees may also begin to dress inappropriately for work, either because they don’t care about their appearance or are having difficulty eating properly, so that their clothes no
“It is estimated that each suicide intimately affects at least 6 other people such as family members, friends and co-workers.” longer fit. You may notice a change in behavior such as personal appearance or not being present while at work.
Getting Help: Whether it is a friend, family member or colleague at work, you will want to get them professional help. The approach you take to this is very important. Your respect and concern can have an impact on the person’s willingness to receive professional help. Offering personal concern and support, moreover letting the person know you care is paramount. As an employer, showing your understanding helps in developing the trust and motivation needed to move towards help. Taking your employee to a private office where no one can overhear your conversation is important. Contacting human resources for assistance will facilitate next steps in moving the person to a safe, helpful environment. Death is difficult in and of itself. Death by suicide adds to the complexity of pain. It is almost always a shocking and upsetting occurrence. When someone we know commits suicide, there are often unanswerable questions as well as complicated grief. Colleagues may have wide-ranging reactions and responses to the suicide of a co worker. Reactions can range from anger to guilt to sorrow. Resources to assist those who are left behind are available through Employee Assistance Programs (EAP). An EAP is a service that offers help to individuals with personal and work related issues. The top five reasons people contact their EAP are as follows: stress management, relationships/couples/family concerns, depression, the need for legal
services for divorce/separation issues and access to resources for dealing with grief and loss. An employer provides EAP services at no cost to the employee and the service is confidential. Contacting the EAP is as easy as picking up the phone and dialing an 800 number where one is greeted by a caring professional who can assist with issues ranging from stress and depression to relationship and marital concerns. Dealing with alcohol and drug issues as well as domestic abuse and work related problems is only a phone call away. The EAP professional will listen and discuss individual needs and concerns. Assessing the situation and finding the best solution is key – whether it involves referring individuals to a local counselor for a face to face session or referring them to a support group or assisting them to navigate the EAP website for resource materials. Remember, no problem is too big or too small. The EAP encourages employees and those close to them to seek help early, before a minor issue becomes more serious. Jennifer is vice president of Clinical and Quality Services, LifeWorks, Ceridian. The LifeWorks service is a comprehensive EAP, Work-Life, and Wellness program that helps organizations improve employee health and wellness, increase employee engagement, and improve productivity. LifeWorks provides employees and family members with access to telephonic, in person and online services to address personal and work related issues. For more information: Website: www.ceridian.com
Franchising USA
ex per t advice
Page 35
focus by Rob S w ystun
WOW 1 DAY PA I NT I NG
faith in the system New franchisees with WOW 1 DAY PAINTING can take comfort in the fact that the franchise is backed by people who have already managed to start and grow a major North American franchise network. Harry Ehrlich, who co-owns a WOW 1 DAY Franchise with business partner Jay Gallant, was inspired to try out the franchise after seeing a clip of CEO and Founder Brian Scudamore talking about the business on CNBC. Scudamore, also founded the now-ubiquitous 1-800-GotJunk? franchise. The WOW concept had Ehrlich hooked and Scudamore’s reputation for already having managed a successful franchising network appealed to Ehrlich, who called Gallant to get him on board.
customers, Ehrlich explained. Rather than sending two painters to do a job that might take them several days, WOW sends 10 painters and gets the job done in a single day. Not every job takes a single day, the franchisee cautioned, but the company will still get a painting job done much quicker than a traditional painting company, regardless of the size of the job.
Not Painters Neither Ehrlich nor Gallant possessed any experience with painting or franchising, the two said during a conference call recently from their headquarters in New York State. But, they were both at points in their lives where they wanted out of the infamous rat race. Ehrlich’s working background is in the finance area, particularly with mutual and hedge funds, something he’s been doing for 35 years. Gallant has also been involved in the finance sector for 35 years, most recently in sales and marketing. But they both wanted out.
Together, they purchased the franchise in November 2013 and went live with it on April 1, 2014. Their territory covers Westchester County in New York and Fairfield County in Connecticut.
“I think the entrepreneurial spirit’s in both of us,” Gallant said. “The idea makes sense and the timing makes sense in our lives. It sounded like something that would be fun to take a run at and be successful at with our backgrounds.”
Basically, what WOW 1 DAY PAINTING does is speed up the painting process for
Ehrlich had been working in New York City, commuting by train every day. The
Franchising USA
stressful and demanding environment of Wall Street meant that he had stopped enjoying the work as much as he used to and he decided he wanted a different lifestyle. Initially when he pitched the idea to Gallant, who was also looking for a different lifestyle, it started out as merely a good idea, but it took a while for it to go from ‘good idea’ to ‘we’re going to do this.’ But, once Gallant had participated in a conference call with the WOW people, he knew it would be the right move.
Training Once the agreement was signed with WOW, things progressed rapidly. The pair went to Vancouver for a week, where WOW 1 DAY PAINTING is headquartered, to attend a crash course in the WOW business model. “They got us up and running very fast,” Gallant said. WOW also had people from Vancouver fly out to New York and help them develop the operational structure of the business and provide more training in how to use WOW’s internet-based tool for setting up appointments and making quotations. WOW representatives trained them how to estimate paint jobs and helped them interview painters.
“It sounded like something that would be fun to take a run at and be successful at with our backgrounds.” As for ongoing training, the two have a monthly conference call with WOW and they also have access to the company’s franchisee’s forum, where they can talk with other franchisees about business matters. They can also call the head office in Vancouver at any time if they have to. Part of the reason WOW was able to get the two up and running so fast is because there is virtually no paper involved in the business. From quotations to invoices, it’s all done electronically. While they will likely need an office eventually, the business is currently run out of their homes. “Everything is internet based,” Ehrlich said. While they don’t have an office, Ehrlich and Gallant do have a WOW-branded van that is completely wrapped with the company’s signature advertising, which is great for marketing. “We’ve had people stop us simply because of the van and ask us for our business cards,” Ehrlich said. Their staff of painters, which fluctuates
throughout the year, uses the van for transportation to jobs, but if the crew is large, some painters will also use their own vans.
Busy Because the franchise is in its startup phase and because the reception from the public has been so positive, the new franchisees have been exceptionally busy. In fact, the response from the public has been so good, Gallant said, they were frankly caught off guard by the demand. “In August, we’re probably going to hit three times our projections and I thought we were being a little aggressive with our projections,” Gallant explained. But, he noted, it took a lot of effort to get the business to that point, which he would tell anyone interested in getting involved with WOW. The concept is fantastic, but it doesn’t sell itself. It requires a lot of effort to get the name out there locally. But, as Ehrlich noted, the success of the franchise founders means that even new franchisees have a superb support system
in place to help them reach their potential. “Even though we are a startup, our support organization is mature and stable and that offers a great deal of positive incentive when starting your own business,” Ehrlich said. For anyone looking to start a franchise, having people who know what they’re doing in charge is a natural boon to confidence. For more information visit: Website: www.wow1day.com
Franchising USA
focus by Rob S w ystun
Page 37
IT’S “WOW” OR NEVER
CRAIG MERRILLS Washington DC Franchise Partner
Don’t miss your opportunity to be a part of America’s next $100 million brand. By leveraging the success of their sister company 1-800-GOT-JUNK?, WOW 1 DAY PAINTING is revolutionizing the home improvement space, bringing innovation and professionalism to an age old industry.
WOW1DAY.COM | 1-888-WOW-1DAY Franchising USA
september 2014
Veterans in Franchising www.franchisingusamagazine.com
Into the Fray
Happy & Healthy Franchisee’s Story of Sweet Success
Always Best Care Dedicated to our Nation’s Heroes
from battleground to business Franchising USA
feature
Page 39
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”
www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com “BUILDING AMERICA WITH AMERICAN HEROES”
© ASUKA Inc. 2014
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.
Take Control Of Take Control Of Take Of YourControl Future… Your Future… Your Future…
A Business Of Your Own! A Business Of Your A Business Of Your Own! Own!
Take Advantage of Our Take Advantage of Our Take Advantage of Our Free Expert Help Free Help Free Expert Expert Help Today! Today! Today!
Make Your Next Career… Make Your Next Make Your Next Career… Career…
Now its time to build a future for you and your family.
You served your country proudly. You served your country proudly. You served your country Now its time to build a future for you andproudly. your family. Now its time to build a future for you and your family.
Veterans in Franchising Supplement september 2014 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
News & Expert Advice
42 Into the Fray. Happy and Healthy Franchisee’s Story of Sweet Success
50 From Battleground to Business Jim Mingey, Veterans Business Services
Profiles 48 DreamMaker Bath and Kitchen
54 VetFran News International Franchise Association Receives Top ASAE Honor
52 Always Best Care
Franchisor in Depth
56 Instant Imprints
44 Colors on Parade
Franchising USA
V e t er a ns i n Fr a nchising
C over S tor y
happy & healthy products
Into the Fray
Responsible, hardworking, self-disciplined – these are just a few of the adjectives applied to members of the United States Armed Forces and they are also the very qualities that make our military veterans ideal candidates for entrepreneurship. Veteran Paul Klein is just one of the many franchisees who embody these traits. He entered the Navy in 1969 and spent the majority of the next two plus decades sailing the western Pacific. After retiring in 1993, Paul transitioned into private sector employment but found himself marveling at the careless approach so many owners had toward their business. By the end of 2008, he had had enough. Hoping to combine his military experience with the lessons learned in the private sector, he and his wife, Barbara, decided to
Franchising USA
“He accepted the bar and continued to make his way through the crowd. After a few bites, he found himself retracing his steps.” attend a local franchise show in Chicago and that step put them on the road to becoming entrepreneurs. It all began with a smile and a simple question, “What’s your favorite fruit?” Paul’s answer – cherries – was rewarded with a one of Fruitfull’s Passionate Cherry frozen fruit bars. He accepted the bar and continued to make his way through the crowd. After a few bites, he found himself retracing his steps to speak to Linda Kamm, the president and owner of Happy & Healthy Products, Inc. – the franchisor behind the treat. Paul and Barbara soon found themselves pouring over a variety of opportunities but the decision was made when they realized that they were constantly comparing each company to Happy & Healthy. Five years later, they credit Happy & Healthy franchisee Dave Weiss with one of the most appealing and most accurate claims made about the opportunity: “The nice thing about this business is that it will only get as big as you want it to be.” For now, the Kleins are content to keep the business relatively small. Their family is scattered all over the country and they love the fact that their highly flexible schedule
gives them to freedom to visit whenever they choose. By the end of their next five years, they see themselves moving to warmer climes… and moving the business with them. The business model makes that option much easier and hassle-free than one requiring a brick & mortar storefront and that was yet another reason that Happy & Healthy won them over. One of Paul’s favorite aspects of military life was the sense of family and he feels that he’s found a new family with H&H. “In the military, we would joke and say there are only two colors of people – green and blue. The good-natured ribbing between the Navy (blue) and the Marines (green) and between the Air Force (blue) and the Army (green) was akin to sibling rivalry.” Paul explains. “Despite the expected competition, everyone depends on everyone else and works together for the greater good. At H&H, Linda goes out of her way to pick people who fit into the family and it shows.”
About Happy & Healthy Products:
investment opportunity to develop your own business and to have fun while doing so. Whether you are considering owning your own business for the first time or you are an experienced business owner looking for a new challenge, we are positive you will find the possibilities of our franchise opportunity to be exciting and rewarding. When you invest with H&H, you get the best of everything – low cost, high satisfaction, and great products: • One of the “Top Low Cost Franchises under $50,000” as ranked by Entrepreneur Magazine • Top 50 in franchise satisfaction by Franchise Business Review • Best Snack of the Americas – Americas Food and Beverage Show & Conference With the above track record of success, it’s no wonder many of our franchisees have remained with us since we started back in 1991… and it’s the main reason you should partner with us today. For more information visit: www.veteransbusinessservices.us/ product-item/happy-healthy-products
Happy & Healthy Products is a unique
Franchising USA
v e t er a ns i n fr a nchising
Page 43
V e t er a ns i n Fr a nchising
C olor s on Pa rade
Colors on Parade
Welcomes Veterans
for Franchising Opportunities The nature of Colors on Parade’s work makes it an ideal fit for people who are exiting the military service and making a start in civilian life again. Jeff Martin, Mid Atlantic Regional Office Area Developer for the company, said a successful franchisee with Colors on Parade will be someone who enjoys working outdoors. “That’s why we think veterans are a good fit for us. Most of them are clearly used to working outside in the elements, whether it’s hot or cold and they’re good with their hands – technical type of work versus office work,” Martin said. “Just the combination of the location where we work, which is outside, and the type of work that we do, which is hands on repairing of cars, makes it a good fit for
Franchising USA
many of the veterans that are coming out of the military service.” Colors on Parade is the only national, franchised company that offers a mobile service doing minor paint, dent and interior repair, primarily for car dealerships and fleet operations. Each franchisee has their own van that they work out of, making them completely mobile. The company has been around for 26 years and started franchising in the early 1990s. Out of its approximately 275 franchisees, Martin has 10 in his territory, which includes Washington, DC, Virginia and Maryland. One of the franchisees in Martin’s territory is a veteran.
Veterans’ Discounts Martin said he has plenty of territories available for new franchisees in his territory and invites veterans to take advantage of Colors on Parade’s special discounts for ex-military members, which include:
“There is a need for Colors on Parade’s unique service because they can repair multiple cars in one day versus sending a vehicle to a body shop.” • a 30 percent discount off franchise fees for Area Developers and Operator Franchisees; • referral programs and growth incentives; • corporate financing availability; and • additional veteran-specific financing programs with support from Veterans Affairs and the U.S. Small Business Administration. The company is an active member of VetFran, an initiative of the International Franchising Association, aimed at helping veterans procure franchising opportunities.
A Need for Service Martin said there is a need for Colors on Parade’s unique service because they can repair multiple cars in one day versus sending a vehicle to a body shop, which is
what most people assume has to happen to fix minor dings and dents. A car that’s in a body shop is off the road and not being of use to the owner and it may even necessitate the owner having to rack up more expenses like renting a car. “Our technicians can repair multiple cars in one day rather than one car over multiple days,” Martin explained. The company’s mobile technicians can go to dealerships and do the work at the dealerships without having the cars leave their property, meaning they’re not taken out of commission. Plus, Colors on Parade often charges less than what a person would pay at a body shop. The company’s large volume of work allows them to keep their prices low. Colors on Parade is active in over 25 states and provides service to thousands
Franchising USA
v e t er a ns i n fr a nchising
Page 45
V e t er a ns i n Fr a nchising
C olor s on Pa rade
areas: paint repair, paintless dent repair or interior repair. 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. of automobile dealerships and retail customers per year, including national brands like: AutoNation, Enterprise, Hertz, CarMax.
Support and Training Rather than a two-tier system where you have a corporate franchisor and an owner/ operator, Martin said, Colors on Parade has a three-tier system that involves a franchisor, owner/operator and an area developer, who is local and is in charge of training, support, recruiting and customer acquisition at a local level. The area developers hold monthly business meetings with their franchisees to keep everybody current. On a corporate level, Colors on Parade offers support for billing and collecting, technical training, sales support, and national AdFund and marketing programs.
Franchise Offerings An area developer with Colors on Parade develops a client base for a new territory and recruits operator franchisees. This requires a minimum investment between $62,000 and $444,000 and comes with an
Franchising USA
average annual gross revenue after three years of $594,000. An area developer receives a seven percent royalty from all franchisees that they oversee. An operator franchisee owns their own mobile paint and dent repair business and this requires a minimum investment of $26,000 - $56,000. An operator can expect an average annual gross revenue after three years of $122,000. The first step is to meet with a local area developer, talk about your expectations and what you are looking for. Martin said it’s important for potential franchisees to understand that this is not an employment opportunity, but a business opportunity. If there is strong interest from a candidate, the area developer will refer them to the corporate level where someone will take them through the Colors on Parade system. That involves going to Myrtle Beach, South Carolina to do two weeks of training, followed by another few days of training in their area with one of Colors on Parade’s Area Developers, like Martin. Franchisees can be trained in one of three
Veterans and Franchising Colors on Parade is just one of many franchises across the country to offer veterans discounts on franchising fees to help them easily start a franchise. One out of every seven franchise businesses are owned by veterans, according to the International Franchise Association and that includes over 66,000 veteran-owned franchises in the United States. These veteran-owned franchises provide over 815,000 jobs and generate $41 billion in Gross Domestic Product. Veterans have certain advantages when it comes to franchising, which makes them sought after franchisees. Their military skills translate well in a franchised business, they have a strong ability to follow standards and systems, they have a demonstrated aptitude for working in teams and they have leadership skills for business development. Colors on Parade offers one such opportunity for veterans, helping them make a smooth transition from military life to civilian life. For more information visit: Website: www.colorsonparade.com
Page 47
FRANCHISING USA is part of the global network of CGB Publishing
With 30 years’ experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity
T H E
I N E M A G A Z
F O R
H I S E E S F R A N C
VOL 08 ISSUE
Franchising U S A THE MAGAZ INE
2014 06 SEPT/OCT
LAN D and NEW ZEA AUS TRA LIA
$5.95 www.franchisi
FOR FRANC HISE
ngusamagazine.com
ES
VOL 02, ISSUE 11,
SEPT 2014
BIG THINGS GROW G SPORA IN NEW CAREER
GREAT AMERICAN DEALS
INT
WHAT TO T ASK & WHA TO SAY
FINA NCIA L
THE BANK S ADVI CE FROM
M A G A Z I N E
$4.95 (AUD), $6.95
(NZ) inc. GST.
ADVI CE TOP LAWY ERS’
F O R
E S F R A N C H I S E
w w w. c a n a d i a n f r a n
chisemagazine.co
m
RE AL IZI NG TH E DR EA M
K NCH ISE WO RLD PIN PAI NTI NG THE FRA
RE VOLUTION IZING THE D A I LY D E A L INDUSTRY
CREATE YOUR
S LATE ST NEW
T H E
FINANCING YOUR FRANCHISE
NGS FROM LITTLE THI
A-TEAM
$5.95
CANADIAN
VOLUM E 2 ISSUE 1
for international franchise marketing solutions.
MAIN FEATURE
CHILDREN’S PRODUCTS AND SERVIC ES LATES T NEWS
FINAN CIAL ADVIC E FROM THE BANK S
TOP LAWY ERS’ ADVIC E
LATEST NEWS
FROM THE BANKS FINANC IAL ADVICE
TOP LAWYE RS’ ADVICE
Visit www.franchisingusamagazine.com to find out more Franchising USA
V e t er a ns i n Fr a nchising
D rea m M a ker Bath a nd K itchen
Utah Veteran Turned Home Remodeler Is DreamMaker’s Top 2014 Franchise little easier,” says Nate Coombs, general manager and co-owner of DreamMaker of Ogden. Nate’s father Steve and Brad Stevens, also an accomplished designer, are partners in the franchise. They recently renewed their franchise agreement for 10 more years.
Nate Coombs
A Utah-based U.S. Air Force veteran who has dedicated his post-service career to designing and modifying kitchens and baths to help others veterans, as well as helping seniors with special needs, has been named DreamMaker Bath and Kitchen’s Franchisee of the Year. “Disabled veterans and seniors often face obstacles in their homes as they age, and it takes someone with universal design expertise to help them start making life a
Franchising USA
Nate was an officer in the U.S. Air Force for four years, keeping guard over our nation’s troops by controlling its nuclear missile system. When he completed his service, he achieved a business degree and then helped grow the Utah DreamMaker Bath and Kitchen franchise. The father of three is now committed to paying it forward by making homes safer for veterans, individuals with disabilities, and the elderly. “It always amazes me that many small changes in homes can be huge for veterans and seniors,” says Coombs.
DreamMaker’s commitment to veterans DreamMaker is working to make lives better for veterans, whether they need help remodeling, or are looking for a
new career. The company is part of the International Franchise Association’s VetFran program, which provides
discounts to veterans starting a business. In fact, the VetFran program was
founded by Don Dwyer, Sr., the father of
DreamMaker President Doug Dwyer. The business is strong. DreamMaker’s sales grew 23 percent last year, nearly seven
times faster than the industry as a whole. “I am proud to have served as an Officer in Air Force as a Missile Combat Crew Member,” says Coombs. “As an officer I had the opportunity to learn valuable
Grant programs are available to help disabled veterans remodel their homes for greater accessibility. One of Nate’s customers recently received a Special Adaptive Housing Grant from the Veterans Administration, for a project that will include a special stair lift and other home modifications. Nate and his fellow team partner, Jim Stratton, who is also an accomplished designer, are working on another grant project that will include a wheelchair ramp and lift.
leadership skills that I have carried
DreamMaker’s “Independence by Design” program was developed specifically to provide home remodeling assistance for persons with disabilities and individuals in need of aging-in-place modifications, such as ramps, stair lifts, and more accessible cabinets, appliances, sinks, showers and bathtubs.
owners and staff sign the company’s ‘Code
with me into this career. I will always
be grateful for the opportunity to be a
member of the military, serve my country and learn lifelong skills.”
DreamMaker’s core principles also appeal to Coombs, who understands that honor and service are at the core of success.
“DreamMaker’s corporate philosophy emphasizes honesty and community
service,” says Coombs. “All franchise
of Values.’ It’s not about our bottom line or seeing how quickly we can get a contract signed, it’s about making sure our clients are happy.”
For more information visit: www.dreammakerfranchise.com
Page 49
Thumbs up for the New Franchise Opportunity from IFG! 3 great features of the IFG 50/50 franchise x
Leverage your capital
x
We handle the paperwork
x
Create exponential growth
This is your opportunity to be in control of x
Your Income potential x
x
Your Capital
Your Work Schedule
While earning a well aboveͲaverage ROI!
IFG 50/50 franchisees provide shortͲterm working capital for small businesses by purchasing current, quality invoices at a discount.
For more information: Tel: 800Ͳ387Ͳ0860 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com Franchising USA
V e t er a ns i n Fr a nchising
Jim Mingey, Veterans Business Services
From Battleground to With a stop at the White House… for a little “TAP” along the way
Over 150 soldiers and marines were the first group to experience the BOOTS to BUSINESS REBOOT at the Eisenhower Executive Office Building adjacent to the White House. Although the President didn’t make an appearance (apparently he had other business to attend to) he did send representatives from his Council of Economic Advisors. Maria ContrerasSweet, Administrator of the Small Business Administration (SBA) delivered the keynote and a variety of small business experts provided quality presentations and advice on small business opportunities, including franchising. The BOOTS to BUSINESS REBOOT has now been presented to Veterans in other major cities across the nation.
o Business Jim Mingey
3 Culture: • How does the franchisor treat the franchisee?
• Is the franchisee just a cog in a big
system or is he/she treated as a real and
“So what is this TAP? It stands for Transitional Assistance Program which is made available to service members who are making the transition to civilian life.” So what is this TAP? It stands for Transitional Assistance Program which is made available to service members who are making the transition to civilian life. Now Veterans who already have gone through TAP can still choose the TAP entrepreneurial track and get access to BOOTS to BUSINESS REBOOT and many other small business resources. For instance, the REBOOT is administered by SBA so its networks of SCORE mentors and Small Business Development Center professions are made available. Veterans also have access to Veteran Business Outreach Centers to hone their business plans and network in local/regional markets. The Veterans Administration also offers an Entrepreneurial Portal with a section on Franchising that has special services just for Veterans. Although the Veterans were encouraged to find the right business idea, it was noted that first you have to know “WHO YOU ARE” because without a passion
for your idea it could be an experience of rough waters ahead. If the idea is a franchise concept, Veterans were advised they should drill down on five key aspects before they purchase:
1 Product or Service: • Is this something you would buy and be passionate about selling? • Would you offer it to family and friends proudly?
2 Profitability: • Don’t just accept the franchisor’s dream presentation! Look at their past performance and actually call several franchisees to verify that they’re making money. • Do their newer units cost more than ones built during the most recent growth spurt, and, if so, how long does it take to get your money back at your cost of investment?
equal partner?
• Is it a team approach?
4 Depth of Support: • Are you confident that their back office operations are sufficient now and can
grow to support an expanding franchise system?
• Are support plans current reality rather prospective ideas?
5 Leadership: • What is their vision? • Do they really know their own
competition and how they plan to be the ongoing force in their marketplace?
Veterans like all other entrepreneurs must delve into these questions before making their final decision to act on purchasing any franchise.
Veterans Business Services will be
presenting on franchising at the BOOTS
to BUSINESS in Annapolis, Maryland on September 3rd.
For more about BOOTS to BUSINESS REBOOT go to http://www.boots2businessreboot.org.
Franchising USA
V e t er a ns i n Fr a nchising
Page 51
V e t er a ns i n Fr a nchising
A lways B est Ca re
Always Best Care
$-("503@:"CD(<$3(2E 9."58
Dedicated to Our Nation’s Heroes
=<'KK"=(3H('-<"J0-"DL";3'-2<."J3L."B-$<(2"=<'<(:"#'3$-("503@:"CD(<$3(2E 8)+'9:";(:<"5'3("F1:$-(::"0+-(3."=')$-':M#0-<(3(9."58
*($)"N+'%O."B-$<(2"=<'<(:"*'?9"CD(<$3(2E 8)+'9:";(:<"5'3("F1:$-(::"0+-(3."G(:(3<"5$<$(:"58
P<L"50)L"P'13'"Q'H(:."B-$<(2"=<'<(:"83,9"CD(<$3(2E 8)+'9:";(:<"5'3("F1:$-(::"0+-(3."/'$3K'R."S8
provides more than 3 million hours of care to seniors annually.
*($)"N+ 8)+'9:"
and the franchise employees, and should also assume a leadership role in community organizations. Veterans excel at meeting these criteria,” he explained.
By many measures ership skills and get it done “Veterans have the leadership sk Always Best Care is one of the fastest growing m exceptional franchisees.” additude that make them excep
The Roseville, California company offers a multitude of programs and services specifically targeted for veterans. And it > continues to be recognized for doing so. '-."/01-2(3"4"567."8)+'9:";(:<"5'3("=(-$03 "=(3?$%(: Just recently, for the fourth consecutive year, Always Best Care was named a Top 50 Franchise for Veterans by the World Franchising Network. Since 2008, the company has grown from
and most successful franchise businesses in the country.
$2 million in annual franchise revenues to more than $66 million last year. In 2013 alone, it received more than a dozen prominent industry awards for outstanding operations, sales and marketing. But for CEO Michael Newman it’s his
D1F(-"I3(?$-0."B-$<(2"=<'<(:"83,9"CD(<$3(2E company’s steadfast commitment to our 8)+'9:";(:<"5'3("83('"D(@3(:(-<'<$?(."*03<&(3-"*(+"J(3:(9
nation’s veterans both as owners and clients that brings him the greatest sense of pride. Always Best Care is one of the nation’s leading providers of non-medical inhome care, assisted living services and skilled home health care. With more than 190 independently owned and operated franchise territories, Always Best Care
Franchising USA
Always Best Care launched a special incentive!"#$%&'()"*(+,'-."/01-2(3"4"5 to award a “free” franchise to military veterans in every state in the union – 51 free franchises (including the District of Columbia) in all, worth more than $2.6 million. For qualifying veterans, Always Best Care will waive initial franchise fees of $44,900 and other fees for the first six months of operation. The total value of each free franchisee is more than $50,000.
In addition to approximately 12 percent of Always Best Care franchises being owned by military veterans, the company provides several care and consulting services for veterans, including its Veterans Assistance Program and Veterans “President Obama called for the industry Loan Program,=@(%$')$:<"A<&"%)'::";$))"#'<&$:."B-$<(2"=<'<(:"83,9"CD(<$3(2E both of which provide care D1F(-"I3(?$-0."B-$<(2"= to create hundreds of thousands of 8)+'9:";(:<"5'3("83('"D new 8)+'9:";(:<"5'3("F1:$-(::"0+-(3."='-"G$(H0"58 and help obtaining funds to pay for care. jobs for veterans,” said Mr. Newman. According to Newman, veterans have the “We’re taking it a step further by ideal traits to become successful franchise providing not just a job, but a lifelong owners. career opportunity that will allow our “Veterans have the leadership skills and getnation’s heroes to build a business while it-done attitude that makes for outstanding making a real difference in people’s lives.” franchisees,” he said. “Another critical For complete information on the Always trait is the ability to be both a leader and a Best Care “free” franchise incentive for team member. To succeed in franchising, veterans, please visit www.abc4free.com. the owner must lead his or her business
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.
At the West Coast Franchise Expo: • See 200+ leading franchises • Attend 40 educational seminars • Get answers to all your franchising questions
Register today, it’s Free! Take charge of your future!
OCTOBER 23-25, 2014
ANAHEIM CONVENTION CENTER ANAHEIM, CA REGISTER FREE NOW AT:
WCFExpo.com USE PROMO CODE: FRANUSA
ATTENTION: NO TRAPS HAVE BEEN SET ON THESE LOGOS PLEASE TRAP AS NEEDED
The King of Clean
®
®
Follow us on:
®
V e t er a ns i n Fr a nchising
Vetera n N ews
International Franchise Association
Receives Top ASAE Honor for Veterans Transition
Franchise Program (VetFran) The International Franchise Association (IFA) has earned the 2014 ASAE Power of A Gold Award for its Veterans Transition Franchise Program (VetFran) and Operation Enduring Opportunity (OEO) initiative. OEO is a franchise industry-wide effort to hire and recruit 80,000 veterans, military spouses and wounded warriors through 2014. Since Veteran’s Day 2011, there have been over 151,000 veterans who have found career opportunities in the franchise industry, with nearly 5,200 becoming small business franchise owners,
“Since Veteran’s Day 2011, there have been over 151,000 veterans who have found career opportunities in the franchise industry.”
Franchising USA
significantly surpassing our goals in both of these areas. The program is stronglysupported by the First Lady and the White House (where the IFA was honored in an East Room ceremony in April, 2013 for its ongoing and measurable efforts) Joining Forces Initiative, as well as the U.S. Chamber of Commerce and their Hiring our Heroes program. ASAE honored IFA for its efforts to support our nation’s veterans, which was the largest privatesector veterans’ hiring commitment at the time of its launch. “Franchising provides an ideal structure to enable returning veterans to become productive participants in the U.S. economy,” said IFA President & CEO Steve Caldeira, CFE. “It is expected that in the next five years, over one million military veterans will be transitioning into civilian life. The franchise industry is well-positioned to support these veterans, and while we have far surpassed our goal, we will continue our steadfast efforts to help veterans, military spouses and wounded warriors achieve their dreams of business ownership.” IFA’s VetFran was founded in 1991 by the late Don Dwyer, Sr. (USAF, Ret.), founder and chairman of The Dwyer Group, to support veterans returning from the Gulf War to ease their transition back into the civilian economy. Today, VetFran includes over 650 IFA member companies offering financial incentives, training and mentoring to veterans interested in small business ownership and/or a career path in franchising. The program includes opportunities in employment, as well as business ownership through discounts, reduced royalties and credits for startup materials. The Operation Enduring Opportunity campaign was launched in 2011 to support military veterans returning from Iraq and Afghanistan. VetFran strengthened the OEO by partnering with the U.S. Chamber of Commerce’s “Hiring our Heroes” program, supported by Capital One Bank.
“We will continue our steadfast efforts to help veterans, military spouses and wounded warriors achieve their dreams of business ownership..” “Congratulations to IFA for benefiting not just their own industry or profession, but society at large,” said Paul Pomerantz, CAE, CEO of the American Society of Anesthesiologists and chair of the Power of A Awards Judging Committee. “This year, our committee had an exceptionally strong group of entries to consider, and it’s heartening to see so many organizations excelling in their work.”
About the International Franchise Association The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA
works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
ASAE’s Power of A (association) Awards, recognizes the association community’s valuable contributions on the local, national, and global level. The Power of A Awards rewards outstanding accomplishments of associations and industry professionals for their efforts to enrich lives, create a competitive workforces, prepare society for the future, drive innovation and make a better world.
Franchising USA
V e t er a ns i n Fr a nchising
Page 55
V e t er a ns i n Fr a nchising
Insta nt Impr ints
Freedom to Set Your Own Goals At the young age of 19 years old, Bill Allen, a U.S. Air Force flight line Avionics Technician had no idea he would become an area developer for Instant Imprints many years later. It was quite a while between his time in the military and purchasing an Instant Imprints franchise. He had several careers in between. Ultimately, he had always wanted to own his own business and Instant Imprints is a business that does not really have a slow period. Bill evaluated sales and found that sales are strong all year long because Instant Imprints produce so many things that small businesses need to promote themselves. Bill wanted a franchise that he could own and operate himself, as well as sell. Instant Imprints is one of the few franchises that offered the option to become an Area Developer as well. Being in the military contributes to many attributes that support business ownership. From Bill’s perspective, “… determination, never quit attitude and solid work ethic is what the military taught me and I was able to bring these attributes to Instant Imprints as a franchise owner. There were numerous challenges when we first opened our franchise. I had never been a business owner before and there were many things to learn: operations, production, sales, training, employee hiring, and management just to name a few. “Instant Imprints’ Corporate offered excellent training, both in owning and operating your business as well as
Franchising USA
technical training in production. Corporate is also instrumental in helping a new franchise get to profitability as quickly as possible via an extensive initial marketing program as well as continued support in marketing and technical training. We are also kept up to date on the latest production techniques and state of the art equipment.” Bill would absolutely recommend starting an Instant Imprints franchise and here’s why? “Instant Imprints offers a very competitive franchise purchase program for veterans. If a Vet is looking for a business to own, that is almost recession proof, with solid corporate support, this is it. Every business, organization, church, school, sports team, municipality and non-profit, needs what we produce and the service we provide. There is no lack of potential clients.” Bill Allen is a proven Veteran success story for Instant Imprints and also an example of why franchise organizations should invest in Veterans owning franchises. As an area developer, Bill continues to support Veterans in pursuing their franchise dreams and is an integral part of the Instant Imprints team.
About Instant Imprints: Founded in 1992 as an imprinted merchandise manufacturer and distributor, Instant Imprints expanded to offer screen-printing, embroidery, sign-making and promotional product services. The San Diego-based company began franchising in 2001. The First and Only Franchise in the promotional advertising industry offering this level of comprehensive products and services. Although they have been around for over half a century, the screen printing, embroidery, sign, promotional products and digital printing industries lacked the technology to easily enter into them. Instant Imprints was the first and are still the only franchise to merge these normally separate businesses under one roof. Why settle for a clothing franchise when you can get all six franchise concepts rolled into one! New innovations, as well as over thirty years of experience in this market, have allowed Instant Imprints to completely revolutionize these wellestablished industries. For more information visit: www.veteransbusinessservices.us/ product-item/instant-imprints
Founding Public Affairs Conference & Franchisee of the Year Award Sponsor
REGISTRATION NOW OPEN! Make your voice heard at the
Join us in Washington, DC for the International Franchise Association’s most important advocacy event of the year! MEET WITH MEMBERS OF CONGRESS about the issues most important to franchising’s success TELL YOUR STORY about the impact of your business in your district NETWORK with other business leaders
franchise.org/publicaffairs.aspx
focus
T he I nter face Fina ncial G roup
I hate paperwork!
I hear you all saying, ‘me too’! In fact, we don’t know anyone that really likes paperwork to the point where they want more paperwork. We are supposed to live in a ’paperless’ society - it seems, however, that we use more paper now than we ever did in the past, and the trend seems to be getting worse rather than better. In a recent survey about which country was the best at setting up a new small business, one of the categories to consider was the ease of starting in terms of the number of forms that had to be completed, and the number of licenses to obtain. Virtually all respondents to the survey sited paperwork as one of the biggest hurdles in getting started in business. It is not only a heavy burden at the start-up phase, but it is an ongoing and everincreasing problem area. Is there a business that you could run that has no forms to fill in, no reports to complete, no returns to send etc.? Probably not, but The Interface Financial Group comes close with a revolutionary approach
Franchising USA
“Virtually all respondents to the survey sited paperwork as one of the biggest hurdles in getting started in business.”
to working with their franchisees and, in turn, their clients. Interface has evolved a franchise arrangement where all of the ‘paperwork’ is completed by the franchisor - Interface. This relieves the franchisees of the day-today paper chase, and frees up their time to do more productive development work. Interface has created a model known as The IFG 50/50 franchise. In this model they share all aspects of the transaction on a 50/50 basis. Interface has a 42-year history of helping small businesses grow with their innovative invoice discounting program. This program accelerates the cash flow for their small business clients, enabling them to grow at a much faster pace. The transaction that Interface undertakes is not a lending situation, but an asset
purchase. The asset being purchased is an account receivable - a piece of paper called an invoice. Interface buys invoices at a small discount, hence their title, ‘invoice discounters’. In any such transaction there are many forms, agreements and documents to be completed - there is much ‘paper’ investigation that needs to happen before a transaction is consummated. The good news, for Interface franchisees, is that Interface does it all. Interface franchisees use their skills to develop and maintain a client base. They do this on a face-to-face basis - Interface calls it the ‘people’ part of the transaction. That’s how the 50/50 approach works: franchisees do the people part of the transaction and the franchisor, Interface, does the paper part. For Interface franchisees, this means that there literally is a very minimum amount of day-to-day
paperwork in running their franchise. The franchise not only has this low paperwork feature, but it also incorporates another dynamic aspect that allows franchisees to borrow money from the franchisor to purchase the invoices from their clients. This means that a franchisee needs less of their own capital as they have access to capital from the franchisor - or ‘other people’s money’. History has shown that many great organizations were built using OPM, other people’s money. In the case of Interface, when this feature is implemented it creates a remarkably high return on working capital for the franchisee. This exceptional return, coupled with the low paperwork approach, is surely a case of getting the ‘best of both worlds’ for
Franchising USA
focus
Page 59
focus
T he I nter face Fina ncial G roup
most Interface franchisees. Interface has perfected this franchise approach, and has seen a rapid growth in their franchisee base as entrepreneurial individuals recognize the advantages of putting their capital to work alongside that of the franchisor’s to produce an above-average return. They quickly see that the franchise represents an opportunity to put capital to work rather than putting themselves to work. Because Interface offers a non-territorial franchise, there is always plenty of space for everyone. There are, however, some very specific background traits that Interface looks for to build its franchise team. Individuals that work well in the Interface environment invariably are exceptional communicators. This means that they have learned the art of listening and absorbing information, and then filtering it to a point where the Interface solution can be applied to the problem. Interface team players all tend to be well-rounded business people, with a high degree of self-discipline. This latter element enables them to work in a homebased business, and often just a one-person business.
Franchising USA
“Interface has evolved a franchise arrangement where all of the ‘paperwork’ is completed by the franchisor.” There are many business opportunities and
service opportunities. Interface, however,
of the paperwork requirement. Interface proves that it is possible to hate the paperwork and still own a very successful financial service business.
50/50 approach, relieving their franchisees
For more information: Website: www.interfacefinancial.com
franchises available in the marketplace.
There are also good selections of financial tends to stand out from the pack with their
SPOT L IG H T ON SERV ICE by Rob S w ystu n
N exus O nline M edia
Nexus Online Caters to F Nexus Online is an internet marketing company with a global presence and an online marketing solution specific to franchises. “A few years ago we developed the first and only online marketing platform for franchises,” CEO Hesham ElHamahmy said during a recent interview from the company’s headquarters in Princeton, New Jersey. That platform is Nexus 360 software and ElHamahmy described its framework as
Franchising USA
being similar to a hub and spoke set up, allowing both franchisors and franchisees to manage their online marketing activities separately, but collaboratively. Franchisors act as a hub and franchisees act as the spokes. “Franchisors can share control of their website and their social media accounts with their franchisees by setting the appropriate access, thereby creating a multilevel presence so both the franchisee and the franchisor, get to control their part of the message and still draw customers.” For example, a franchisor could set the software to detect when it posts something about a deal on its Facebook page and the software would automatically post that
same deal on the franchisees’ Facebook pages. It can also work the other way, with a franchisee posting something about a local deal and a franchisor’s account picking it up for increased exposure. This way the entire network benefits from everyone’s online activity. But the software is just one facet of the company, which has been in operation for three years, the CEO noted. It’s the people behind the software that matter most. “Sometimes, I feel that our real value isn’t the software, but acting as a marketing team extension for the customer,” ElHamahmy said. “Many of our customers need that 50+ years of experience that we’ve got on our team.”
“Sometimes, I feel that our real value isn’t the software, but acting as a marketing team extension for the customer.”
Hesham ElHamahmy
investment for the online advertising dollars.
Franchises That team consists of 25 employees located throughout offices in New Jersey, Paris, Ukraine, Washington and New York, giving Nexus Online an international flair. Those employees have backgrounds in marketing, search engine optimization, search engine marketing, mobile communications, banking, and consumer products.
Marketing Efficiency
“Many small businesses can’t hire a marketing director or a full marketing team, so Nexus Online fills that role,” ElHamahmy said, “using the Nexus 360 software as a tool to use for the service Nexus offers, drawing up effective marketing plans for both franchise and independent small business customers alike.”
have to go to several different vendors.
The Nexus Online CEO said most online
marketing solutions are ineffective because they only address one facet of online
marketing rather than encompassing the
website, social media, email, e-commerce
and other forms of online marketing. With Nexus, businesses get all that so you don’t According to research he’s read,
ElHamahmy said, 85 percent of online advertising is spent on direct ads like
banner ads or Google AdWords, but there is only a 13 percent conversion rate from this spending, meaning most companies are receiving a deplorable return on
It’s better to go with more organic online advertising, he recommended, and Nexus Online can steer businesses in that direction with their experience and knowhow. “Nexus Online’s content distribution system is extremely powerful,” ElHamahmy said, “able to upload content and distribute it to many platforms at the push of a button, making that organic traffic easier to attract.” The company’s predictive analytics are also of great value, allowing clients to see how well the system is working and where their online marketing needs improvement. It is able to measure effectiveness of specific ads, meaning ROI is easily tracked. “We really try to be a one-stop shop for franchises, especially emerging business,” ElHamahmy said. With a software platform that was built from the ground up specifically for franchises, and a team to back it up, Nexus Online promises to take franchises’ online marketing efforts to the proverbial next level. For more information visit: www.nexusbeyond.com or email: salesinfo@nexusbeyond.com
Franchising USA
SPOT L IG H T ON SERV ICE by Rob S w ystun
Page 63
ex per t advice
Tariq Farid, Founder and CEO, Edible Arrangements
The Hidden, Busine Skill Set of Millen
Why I Believe Generation Y Has It Takes to Succeed as Entrepreneurs survey, millennials are the first generation in the modern era to graduate college with higher levels of debt and higher rates of unemployment than the previous two generations. That’s hardly an enviable position to be in, entitled or not. Tariq Farid
Imagine you are growing your business and the hiring pool presents itself as a fresh crop of millennials. What comes to mind as you think about working closely – and entrusting your business – with Generation Y? Are you filled with dread as you imagine twenty-somethings scheduling work around yoga class and Snapchat sessions? Perhaps you already find yourself surrounded by millennials where you are doing business. Or perhaps you’ve heard horror stories, and wonder what the future holds for you. Either way it’s easy to conjure up the stereotypes we share about these young people, roughly the generation born between 1982 and 2002, give or take a few years. They’re entitled, they lack focus, they’re self-centered, they can’t commit. But while one could argue stereotypes sometimes spring from a small kernel of truth, I believe millennials get a bad rap. According to a recent Pew Research Center
Franchising USA
Behind the popular images attributed to them, millennials have an inherent set of skills which are largely unseen and underappreciated. Here are three traits I believe make millennials well suited to thrive in business and entrepreneurship:
1
They have a natural sense of adaptability in changing circumstances
One criticism frequently leveled at millennials is their constant job-hopping. They have no qualms about switching jobs frequently – as much as four times a year if it suits them – whereas earlier generations felt more of responsibility to see a job through to the end of one year, at least. Yet the same thing that drives millennials to switch jobs – to keep trying things out until they get it right – is the same trait that makes them adaptable to changing circumstances, and adaptability is one of the most important qualities a successful entrepreneur can have. As you well know if you’ve been in business more than a few years, the landscape is constantly changing for businesses of all sizes and types. Those who learn to adapt to changes, especially challenging ones, without compromising their values will do well. Adaptability is what allowed my greatgrandfather to find opportunities for work rebuilding San Francisco after the great earthquake of 1906. It is also what allowed
ess-Savvy nnials
as What ntrepreneurs my mother to immigrate to America from Pakistan, providing our family with a life full of hope, opportunity, and the ability to achieve great things. And it is what has helped me grow our brand over the past 15 years, from just one store to a network of 1200 franchises in 49 states and abroad.
2
They have an affinity for new technology, and easily integrate it into their lives
This is something I am excited about. Since we also own a software business, Netsolace, I’ve always focused on bringing new technology into my own businesses, and I value and appreciate how seamlessly millennials integrate new apps, devices, digital tools, and open-source problem solving into their daily lives. The millennial generation grew up with technology cemented into their environments in ways that previous generations did not. The internet and widespread wireless access were norms; having a cell phone and other tech gadgets that can fit in your pocket were a no brainer from the time they were small children. New technology will continue to evolve and dominate the way we conduct business and the way our customers shop and access services. Millennials’ ease with new technology is a strong asset for any business looking to embrace technology and not be left behind.
3
They are incredibly resourceful, and can think well on their feet
I see a cleverness in millennials that is refreshing. Because the economy has been
so tough for them, they are forced to be very resourceful. Whether it’s about finding good deals on clothing or an apartment, or making their own jewelry or furniture out of raw materials, millennials are steeped in a do-ityourself culture that makes them incredibly clever. When you run a small business, it’s imperative to have people with a resourceful, get-it-done attitude on hand, and many millennials have this trait as a mark of their generation. I recently watched a franchisee interact with a young intern. They faced a dilemma over how to transfer a large digital file from one computer to another, so the manager could view the file her intern had been working on, but at her own desk. The file was too large for email, and the intern didn’t have access to their file sharing program. While the manager puzzled over how to transfer the file, the intern reached into his pocket and pulled out a digital memory stick – and plugged it into his computer to copy the file. Within seconds, he walked it over to the manager’s desk, plugged it into a USB port, and she had the file open in front of her. This kind of resourcefulness, combined with a deftness with technology that only five years ago would have boggled the minds of earlier generations, is an example of a millennial characteristic that often goes unseen.
The bottom line? Millennials are expected to make up 75 percent of the workforce by 2025, and it behooves us as business owners and leaders in our communities to recognize and appreciate the skills that will help develop this next generation of entrepreneurs and leaders. Tariq Farid is the Founder and CEO of Edible Arrangements, which 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. For more information: Website: www.ediblearrangments.com
Franchising USA
ex per t advice
Page 65
Fr a nchisOR I N DEP T H by Gina Gill
T he G row th C oach
The Growth Coach –
Changing Businesses, Changing Lives The company was started in 1993 by Daniel Murphy, CEO and business coaching expert, who had been a CPA but found that position had limitations with small business owners. Daniel wanted to grow mindsets and coach beyond taxes, so he decided to start his own coaching business.
The Growth Coach is not simply a coaching business – it is a way of life. The company focuses on the stabilization of middleclass by changing the mindset of small business owners and maintaining a better work life balance, making it completely different than other business coaching opportunities. Franchising USA
At the time, coaching was a relatively new concept and Daniel noticed there was a huge opportunity that was not being leveraged. On average most small businesses have the same underlying issues in different development areas and he decided to put all of them in one room together to leverage time in a workshop setting. This idea produced the same results in less time and created permanent changes for the business owners. The Growth Coach focuses on changing communities and helping improve businesses through a change of life and perception that remains perpetual because results are evident and the process is engaging rather than a presentation by one speaker to a group of people. “What Daniel had started in the early stages was a basic development program for an entry-level manager, for example. Over the course of ten years, he has perfected his workshop process with exercises, follow-up exercises and it morphed into a long-term group synergy process of mindset change,” said Nathan Owens, President of The Growth Coach.
In 2003 the product and process had been solidified enough to start expanding on a national level and it started franchising with the first owner in Cincinnati, Ohio. Eleven years later, The Growth Coach has 155 territories and is established in ten countries. Covering 36 states coast to coast, the company hopes to be in 50 states by the end of the year. The Growth Coach does not have franchises on an international level but rather a master partner in each country that allows them to be highly selective with who they work with based on the country’s needs. In order to cover the globe, The Growth Coach is developing the next aspect of the business through live group workshops within a virtual space so the coaching process can be accessed anywhere in the world by anyone at anytime. “We have positioned our system for a global expansion and in doing that we have seen an unbelievable ability to stabilize the middleclass. So now we have developed this global empire based on this group coaching process which is a two-year process that has workshops and a micro mindset,” explained the president. “When someone is doing one of our exercises they don’t understand the bigger picture that this one exercise is going to yield but when all of our small exercises are combined, it creates a mindset that impacts the business. It gives business owners more free time and more balance in their
life. What we do synergizes around our owners’ business and their life. Better business, means better life.” The Growth Coach helps people and their businesses better leverage their time and enjoy more enriching lives. There are over 35 million small business owners and entrepreneurs in America who are overworked and need help creating better results and balance within their workplace. The Growth Coach offers an affordable coaching process that is different from consultants or any other coaching business, especially when comparing the length of the progress they offer. “A lot of coaching businesses try to copy what we do but it’s not a month long process with a guest speaker coming in and doing the workshop - that is essentially someone presenting something to you. That produces a short-term result and your mind doesn’t change in what you do every day, so there is no real impact to your business or life,” explained Nathan. The Growth Coach continuously holds many people from a company accountable throughout a two-year process with repetitive exercises that change perceptions. By having people make promises to change certain behaviors with a group of people witnessing that commitment, it holds them accountable. “This is one of the only systems that has figured out how to hold massive amounts of people accountable over the course of two years. We have a proprietary system. I am going to know whether or not you did something, I am going to challenge you on it and the whole room is going to know about it. No one else does that. No one else can do it and that’s why you need us. If you are a small business owner and you can afford to invest in something that is guaranteed to give you a major return in your investment and help you take weekends off, how can you not utilize that?” asked Nathan. The Growth Coach is essential for any leadership position because small businesses do not have any guidelines or head office backing as a support system. “A small business owner is by themselves and on their own. They started a business
Franchising USA
fr a nchiso r i n dept h by Gina Gill
Page 67
Fr a nchisOR I N DEP T H by Gina Gill
T he G row th C oach
because they loved it and now they are consumed by it. Our owners need us to help them gain clarity, focus and be held responsible,” further explained Nathan.
Coaching versus Consulting Hiring a consultant firm is not nearly the same as The Growth Coach. Consultants are experts in a specific field. They enter a business, dissect it from what they know and offer plausible answers with written rules to follow based on their professional assessment. Eventually a business owner would ignore those instructions and continue with their previous means of running the business. “Coaching is different. When a coach goes into a business or in our case, when an owner comes to us, it’s never about what I think or how I would fix it,” said Nathan. “My job as a coach is to get your mindset to a point where you can step away from your business, look at it, find out what’s wrong with it and develop a plan to fix it. A beautiful part of being a really good coach is holding you accountable to it and then repeating that process and repeating it again.”
Franchising USA
“What we do synergizes around our owners’ business and their life. Better business, means better life.” The Growth Coach is extremely affordable especially in comparison to other coaching and consulting companies. A lower price tag also comes with tools including mapping for small businesses and business evaluation with a comparison of a company’s worth today related to it’s worth after the two-year process.
Training and Support In comparison to other franchise companies, The Growth Coach has an extended training period, providing five and a half weeks worth of extensive training. Before a fee is even sent, an interested candidate receives a dedicated onboarding coach and they obtain different phases of training. “It’s like having your own personal assistant, CPA and trainer all wrapped into one,” described Nathan. Then there is a week of onboard training, followed by eight days of site training to obtain knowledge of the company’s core foundation including what the systems are,
how to deliver and facilitate them, how to network and go through the sales process and develop sales mapping in order to learn how to run the business before the franchisee gets on location. Training involves mimicking workshops and sales processes including live network events. Then there is two weeks worth of day-to-day development with a support coach and a marketing coach and the next ninety days is mapped for the franchisee. Once a business is up and running, a franchisee has an operational coach and a veteran coach available through mentoring calls as well as a help desk center setup for sales and marketing. Regional meetings are held every two to three months and there is a yearly conference. “We have to care about an owner’s business too,” said Nathan. For more information: Website: www.thegrowthcoach.com
Page 69
Franchising USA
ex per t advice
Andre Kay, CEO & Chief Marketing Officer, Sociallybuzz
Introduction to Snapchat for Franchises
Snapchat is one app with several functions. People use it to communicate one-to-one, one-to-few, and one-to-all. They share moments, not just pretty pictures, through stills and videos with added captions, doodles, or filters to make them even more fun and personal. Franchising USA
If your target audience is age 13-25, here are some important ways you can use Snapchat to connect with those customers. First, you will need to know the definition to some very specific Snapchat terms: 1) Snaps: A 1-10 second photo or video sent to one or a few friends that disappears after viewing. 2) Story: Snaps threaded together to create a flipbook of moments for all your friends to see. Each individual Snap lives for 24 hours before it disappears. There is no limit to the number of Snaps you can add to your Story, and no rules for what you post. Anything goes.
3) Chat: One-to-one conversation with text and images.
4) Here: Real-time face-to-face video chat.
5) Our Story: A location-based
collaborative Story that doesnâ&#x20AC;&#x2122;t just
cover a live event; it throws a viewer into the experience itself.
How to get started: Create a business account: 1) Enter your email, create a password and enter your actual birthday
2) Skip verifying your phone number
“Stories are a blank canvas, so have fun, experiment, and see what works.”
Andre Kay
Check your stats: 1) Tap your story 2) The # next to purple eye = number of views 3) The # next to green arrow = number of screenshots
Snap:
social channels to get your customers to
Stories are a blank canvas, so have fun, experiment, and see what works. Here are a few tips:
cannot refuse.
• Make it personal • Make it exclusive • Promo codes • Offer exclusive deals • Reward current customers • Giveaways to attract new customers • Showcase special events
Create a successful contest: 1) Spread the word: Use your other
follow you by offering them a deal they 2) Customize your deals: Don’t send
everyone the same deal, maybe send
25 percent a special offer, 35 percent a promo code and 40 percent exclusive content.
3) Create urgency: Customers physically have to be in the store, in front of the cashier where they can see it. Otherwise it’ll expire.
Now that you’ve made a start and got
everyone’s attention, you can start sending SnapChats regularly.
Franchise brands like Taco Bell, McDonalds and Dunkin Donuts are utilizing Snapchat to connect with fans. By using Snapchat just as individuals do, they are connecting in an entirely new way. We recommend experimentation. Learn what it’s like to create, what Stories fans find most compelling, and ultimately, what your Snapchat voice is. 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.
Franchising USA
ex per t advice
Page 71
'3&& 4&0 "OBMZTJT BOE 2VPUF $BMM /PX 901-672-7243
Franchising USA
www.highervisibility.com
info@highervisibility.com
Franchising USA
V E T ER A NS I N FR A NCH ISI NG
Page 75