Franchising USA- February 2014

Franchising usa T he ma g a z ine for franchisees

VOL 02, ISSUE 04, feb 2014

$5.95 www.franchisingusamagazine.com

It Is Easy Being Green Franchising B2B: Business Service Franchises

Dealing With

Lease Deposits Sell Your Way,

D i s t i n g u i s h Yo u r B r a n d LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE

SANDEE DEVINE Vice President – Franchise Development 888-561-3242 franinfo@murphybuysiness.com www.murphybusiness.com

TRAINING Our initial training program is unsurpassed in the industry and is designed to fully prepare you in all aspects of the business by providing you with the necessary resources and tools to help you succeed.

We offer ongoing updates and training through our franchisee support website, webinars, conference calls and our highly acclaimed Educational Conferences.

WHETHER YOU’RE CURRENTLY AN INDEPENDENT BUSINESS BROKER OR YOU ARE CONTEMPLATING BECOMING ONE, MURPHY BUSINESS & FINANCIAL CORPORATION ADDS VALUE FOR YOU AND YOUR CLIENTS. You don’t need experience in business brokerage. You bring your interpersonal skills and past business experience with you, and we’ll train you and provide you with the tools you need to be the best professional business broker in your market.

PROVEN LEAD GENERATION PROGRAM We use our proven lead generation program; a mix of different types of targeted direct mail, followed up by telephone calls. And we do it all for you.

Our philosophy is to have you spend your time generating revenue, not with office busy work.

Most importantly, we’re not only the franchisor, but we’re also skilled, practicing business brokers.

We continue to work in the industry by owning and operating the Florida Region and the Tampa Bay Area franchise. By doing what you do every day, we know what opportunities exist and work to create new programs and processes to make your life easier.

Here’s why Murphy Business is the best choice!

BENEFITS s No experience necessary for single unit franchisees s Low entry cost, low overhead s Scalable – sole practitioner or build a firm with agents - and - we train your agents for you s Home based or virtual office s Multiple revenue streams: business brokerage, valuations, mergers & acquisitions, machinery and equipment appraisals, franchise sales and resales and commercial real estate

NATIONAL TEAM CENTER Our team of experienced professionals is set up to do the majority of the back office work for you, so you can provide a full suite of services to your clients. You don’t have to worry about spending time on administrative tasks.

UNPARALLELED SUPPORT Our teamwork-oriented home office support team, franchisees, agents and professional partners are always available to provide advice, guidance and support.

s Ongoing training and continuous support s Marketing, direct mail and teleleads services s National Team Center for back office support s Financing available for qualified candidates

CLICK HERE TO LEARN MORE

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 2, ISSUE 4 February 2014 publisher: Colin Bradbury. colin@cgbpublishing.com

EDITOR: Jessica Spoto. editor@cgbpublishing.com

SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com

Business Development Manager: Jenn Dean. jenn@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: 3 potato 4

CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 250 590 7116 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

Editor A new month is the perfect time for new beginnings, a fresh perspective, and getting your goals into gear.

For those of you looking to purchase a franchise, find a business in a field that caters to both your needs and wants; success is not the key to happiness, happiness is the key to success. If you love what you are doing, you will be successful. To help kick-start your new business aspirations, this February issue of Franchising USA has been designed to provide you with all the tools and knowledge you will need to pursue your dream job.

Featuring 3 Potato 4 on the cover, this business is offering a biodynamic approach to a national franchise brand.

Serving up organic, baked not fried potato fries in its streamlined 1950’s themed restaurants, 3 Potato 4’s focus is on supporting green initiatives. Today the gluten-free food market is a $4.2 billion dollar industry and with interest extending into the restaurant industry, 3 Potato 4 is filling this niche and offering eco-friendly franchising opportunities.

In this issue’s Feature on Business Service franchises you will learn about various types available, and the benefits of owning one in this sector.

The Franchisor in Depth articles cover businesses that are pursuing new endeavors and conquering new territories, while the Franchisee in Action stories

cover successful entrepreneurs who have followed a path to franchising, and are now partners with some of the hottest brands on the market. In this issue you will also find tips from industry experts for SEO content management, lease deposits, business funding, and brand distinction.

February’s Veterans Supplement includes a cover story on Midas. Committed to the success of its franchisees, Midas is offering incentives to new partners and qualifying Veterans of U.S. Armed Forces who wish to purchase a franchise.

The supplement is filled with tips for transitioning from the military to the civilian workforce, stories of successful veterans, franchise opportunities, and much more.

As you read the February issue I hope you find inspiration to pursue your goals.

As author Charles R. Swindoll once said; “We are all faced with a series of great opportunities brilliantly disguised as impossible situation’s.” It’s time to seize these opportunities and build something extraordinary.

Please take a few minutes and complete our reader’s survey at www. franchisingusamagazine.com. You will be added to our ever growing list of subscribers and receive a free subscription of Franchising USA for the next 12 months.

Wishing you a wonderful month, Jessica Spoto Editor, Franchising USA

The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

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february 2014

On the Cover

3 Potato 4: It Is Easy Being Green

22

43 Franchising B2B:

Business-to-Business Services

78 Franchisee Tenants: Dealing with

Lease Deposits

Jeff Grandfield & Dale Willerton, The Lease Coach

52 Sell Your Way, Distinguish Your Brand

Eric Schehterman, Benetrends

28

10 Cover Story

16 In Every Issue

Spotlight On Service

06 Franchising News Announcements from the Industry

32 ASAP Accounting Services & Payroll LLC

43 Feature Article

Franchising B2B: Business-to-Business Services 59 Veterans Supplement

On the Cover: Midas

Franchise Profiles 14 Money Mailer 20 SurePayroll 54 BaseCamp Franchising 76 BeSprout Technology Franchising USA

20

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Contents

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Expert Advice

22 3 Simple Facebook Features to Increase

Customer Engagement Andre Kay, Sociallybuzz

80

16 Small Business Funding David Banfield, The Interface Financial Group

28 SEO Tip: Content Management at the Franchise Level Adam Heitzman, HigherVisibility

52 Sell Your Way, Distinguish Your Brand Eric Schehterman, Benetrends

78 Franchisee Tenants: Dealing with Lease Deposits Jeff Grandfield & Dale Willerton, The Lease Coach

84

40 8 Ways to Fund Your Dream George Knauf, Franchoice

84 Pending Franchise Legislation: What Franchisors

and Franchisees Need to Know Julie Lusthaus & Mackenzie Dimitre, Einbinder & Dunn, LLP

48 WOW 1 DAY PAINTING 80 Wok Box

70

Franchisee in Action

Franchisor in Depth 24 Bennigan’s 36 Play N Trade

Have Your Say 56 Mr. Rekey Locksmith

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what’s new!

New Year, New Expansion Plans for Brooklyn Water Bagel Co. Brooklyn Water Bagel Co. Continues to “Brooklynize” the Nation Brooklyn Water Bagel Co., the pioneering bakery/cafe restaurant that creates Brooklynized™ water for use in all its food, beverage and bakery products, rang in the New Year with official expansion plans for 2014.

Kicking off the expansion plans with opening its newest location in Charlotte, North Carolina, additional franchise locations are slated to open this year in Boca Raton and Lake Mary, Florida.

“During recent years, it has become increasingly apparent that bagels are no longer just an ethnic specialty. Our freshly baked bagels at Brooklyn Water Bagel are becoming a staple across college campuses and neighborhoods around the country, proving that they have a more universal appeal,” says Steve Fassberg, the CEO of Brooklyn Water Bagel. “We look forward to continuing our mission to ‘Brooklynize’ the nation this year

as more customers experience the authenticity of our product and understand the importance of our key ingredient, the water.”

Known for its Brooklynized™ water, Brooklyn Water Bagel is revolutionizing the bagel-making process from start to finish.

Using its proprietary water technology, the company is able to produce authentic New York bagels anywhere in the world for its loyal customers.

Since launching in 2009, the brand is an emerging national player and a leader in the quick service industry. Currently located in five states, the company plans to expand from 16 locations to 20 total restaurants by the end of 2014.

For more information: Website: www.brooklynwaterbagels.com/

BENETRENDS ANNOUNCES NEW $100 MILLION FUND TO FUEL FRANCHISE GROWTH Benetrends, the trusted leader in franchise funding, recently announced the creation of a new proprietary $100 million franchise financing program.

The new lending program was created to help International Franchise Association franchisor members provide qualified candidates with direct access to capital for new store development. Hand & Stone, a rapidly growing spa franchise, is the first franchisor selected by Benetrends to participate in the new fund. Hand & Stone has been provided $10 million in initial capital to assist with its franchise growth.

“Benetrends is excited to now provide franchisors and their franchisees access

Franchising USA

to the critical funding needed to expand their current operations or purchase their first franchise,” said Rocco Fiorentino, President and CEO, Benetrends, Inc. “We’re pleased to award Hand & Stone the first $10 million from the new fund as they look to meet their future development needs following their record-setting growth in 2013.”

• Loan proposals within 48 hours of receiving initial application

Franchisors and franchisees selected to participate in the program benefit from:

Website: www.benetrends.com.

• Direct access to capital • Simplified qualification process • Dedicated loan officer from application to closing

• Loan commitments within 10 business days of receiving loan package • Consistent communication with lender and single point of contact • Experienced PLP SBA lender For more information:

Red Mango Celebrates Milestone Year of Development in 2013 Red Mango, named one of the FastestGrowing Franchises of 2013 by Entrepreneur magazine, celebrated an award-winning year for franchise development in 2013.

The chain surpassed 270 locations, which includes units across 30 states and 43 international sites throughout Mexico, Uruguay and El Salvador.

Red Mango celebrated the addition of more than 40 new franchisees to the system, the opening of 60 new stores, and entry into the states of Michigan and Kentucky.

“It was another year of exciting growth for the Red Mango brand,” said Dan Kim, founder of Red Mango. “We reached new milestones with our national and

international presence, we expanded the menu and we launched our exciting new Red Mango Café concept.”

The expansion included aggressive growth in non-traditional locations, such as airport debuts for Red Mango and more than 20 campus openings. In 2013 Red Mango also expanded its menu options to offer a wider variety of smoothies, dairy-free Skinny Sorbetos, and frozen Greek yogurt.

The year ended with the introduction of a new Red Mango Café concept and a development deal for Puerto Rico.

The Red Mango Café concept features a variety of fresh healthy items, all with less than 500 calories.

In addition to physical advances, the company also expanded its online presence with the launch of the Red

Mango app, and Kim was awarded the 2013 Digital Executive of the Year award at the first-ever RIZMY Awards for restaurant leaders in Phoenix.

For more information: Website: www.redmangousa.com/

World Travel Holdings’ Home-Based Division Experiences Double-Digit Increase in 2013 CruiseOne Celebrates Achievements and New Support Tools World Travel Holdings, the world’s leading cruise agency and awardwinning leisure travel company, recently announced that its homebased division, comprised of CruiseOne, achieved many notable accomplishments in 2013.

From CruiseOne reaching the 800th franchise milestone to expanding its marketing programs; launching innovative technological developments; enhancing training programs; and winning prestigious awards such as the Small Business Influencer Awards, South Florida Business Journal CIO Awards, Women in Ecommerce Golden Mouse Awards and G.I. Jobs Military Friendly Franchise to name a few, the home-based travel

company experienced unprecedented growth.

“CruiseOne is essential to the overall success of World Travel Holdings - and was a substantial driver in being named by both Royal Caribbean and Norwegian as their respective ‘Partners of the Year.’

I am pleased that we were able to prevail and have an impressive year, despite the challenges to the industry,” said Brad Tolkin, Co-Chairman / CEO for World Travel Holdings. “To win the highest recognition from two of the three largest cruise lines serving the North American market is a validation of the incredible team our organization has and the success of our partnership with our valued cruise line partners. We are thankful for all of the

hard work and dedication displayed by our wonderful network of CruiseOne owners and look forward to even greater success in 2014.”

For more information: Website: www.CruiseOneBiz.com

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what’s new!

Blaze Fast Fire’d Pizza Adds Junior Bridgeman and Jim Patterson as Franchise Partners Build-Your-Own Pizza Concept Plans to Open 45 New Restaurants in 2014 Blaze Fast Fire’d Pizza recently announced that Millennial Restaurant Group, a partnership between franchise veterans Junior Bridgeman and Jim Patterson, has signed an agreement to develop 30 Blaze Pizza franchise units in Florida, Tennessee and Kentucky.

Today, Blaze Pizza has 10 restaurants open in California and the Midwest, and plans to open 45 new units in key markets across the country in 2014. The 45 new restaurants will be a combination of franchisee-owned and company-owned units.

With the addition of Millennial, the build-your-own pizza concept now has agreements with 23 franchise partners that include commitments to build 240 restaurants in 19 states and Washington DC over the next three to five years.

Millennial Restaurant Group is jointly controlled by former NBA player Ulysses “Junior” Bridgeman and restaurant veteran Jim Patterson. Bridgeman, ranked the fifth largest franchisee in the country, is the owner/operator of 125 Chili’s and

Matco Tools Announces Strategic Growth Initiative for 2014 Franchise Sets Sights on Adding 500 Distributors, Creating Small Business Opportunities for Entrepreneurs Nationwide recently announced a 2014 strategic growth plan that aims to add 500 distributors who will own and operate mobile distribution centers in select markets across the nation.

Matco Tools has found a winning formula in the automotive aftermarket tools sector.

The franchise of nearly 1,500 distributors

Franchising USA

“At the end of the day, this is a service business that offers the convenience of bringing tools directly to our customers,” said John Green, Executive Vice-President of Marketing and E-Business for Matco Tools. “We’ve become known industrywide for our customer service and high-quality products. We’re kicking our

195 Wendy’s restaurants. Patterson, the founder of Rally’s Hamburgers and Long John’s Silvers, is the owner of 40 Wendy’s restaurants. Wayne Albritton, former CEO of Rally’s Hamburgers, will be the franchise group’s Managing Partner.

“Super-fast, custom-built pizza is proving to be extremely popular with consumers,” said Bridgeman. “We’ve already seen the successful development of burgers, burritos and sandwiches into a fast-casual format. Similarly, we believe that fastcasual pizza, and Blaze Pizza in particular, will be huge.”

For more information: Website: www.blazepizza.com franchising efforts into high gear.”

Growth plans in 2014 call for expansion in target markets including Portland, OR, and surrounding communities, Omaha and Lincoln, NE, New Orleans, Baton Rouge, LA, Fayetteville, NC, and in other key markets across the nation. This targeted growth strategy comes on the heels of a promising 2013, which found the company adding 200-plus distributors and continuing its 60-plus year tradition of providing auto mechanics and others premium tools for their trade.

The launch of Matco’s aggressive 2014 franchising strategy signals the start of an initiative to double the yearly growth rate of new distributors. Matco has developed a progressive financing model for qualifying new owners to help entrepreneurs who have a desire to become small business owners, but lack the working capital to do so.

For more information: Website: www.MatcoTools.com.

Baskin-Robbins Unveils New Development Incentives For 2014 New Franchisees Pay 0% Royalties in Year One and Get 50% off the Initial Franchise Fee Baskin-Robbins recently announced its 2014 National Development Incentives, offering new franchisees and military veterans financial discounts on royalties and on initial franchise fees.

Available through the end of the year, these special incentives are part of Baskin-Robbins’ plans to attract new franchisee candidates for growth markets around the country.

In 2014, new qualified Baskin-Robbins franchisees can take advantage of significant offers, including 50 percent off of the 20-year initial franchise fee -- a $12,500 value – and reduced royalties for the first five years, including the first year at zero percent. Furthermore, if the new franchisee signs a multi-unit agreement in 2014, they will receive the same incentives for each additional unit that is timely opened.

For honorably discharged military veterans who sign an agreement in 2014 and timely develop their shops before the end of 2015, Baskin-Robbins will waive the 20-year initial franchisee fee for their first restaurant, offer a zero percent royalty rate for the first two years, and a reduced royalty rate for years three through five. If a military veteran signs a multi-unit agreement, they will be extended a 20 percent discount on the 20-year initial franchise fee for up to four additional shops that are timely opened, as well as a 10-year payment plan.* *For details, please see the Baskin-Robbins Franchise Disclosure Document.

For more information: Website: https://www.baskinrobbins.com

Businesswomen Build the Nation’s Largest Franchise To Pair Painting With Wine A Place Where Novice Artists Can Paint On a Blank Canvas, Socialize, Sip Wine, and Take Home Their Own Self-Made Art Opening their first studio in Mandeville in 2007 under the name Corks N Canvas, in 2009 Cathy Deano and Renee Maloney franchised under the trademarked Painting with a Twist name in Texas, Louisiana and Florida.

Today, they boast 114 franchises in 20 states and are leading the pack as the largest and fastest-growing paint-and-sip franchise in the country.

“Painting with a Twist is a refreshingly authentic franchise organization with a great business model and purpose,” said Mike Powers, Managing Director of Painting with a Twist. “The founders, corporate team, and franchise partners share a special bond and culture that you rarely find in other companies.”

Today the company employs 13 full-time staff, including co-

founders Deano and Maloney. The owners have bought a new building in Mandeville that will house the corporate headquarters, a studio, and a training studio for both art and business.

The startup investment to become a Painting with a Twist franchise is about $100,000. Franchisees receive sales, marketing materials, and support, as well as access to the company’s library of 3,500 copyrighted paintings. The company has also developed a system to help franchisees find local artists to lead classes.

“It’s not a bar. It’s not a house. It’s a different way of being able to socialize,” Deano says. “You feel accomplished.”

For more information: Website: www.paintingwithatwist.com/

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3 Potato 4

It Is Easy Being Gr Offering an eco-friendly, biodynamic approach to a national franchise brand, 3 Potato 4 is serving up delicious organic, baked not fried potato fries in its streamlined 1950’s themed restaurants.

Today the clever franchise is looking to grow with those who understand the need to be green.

Featuring a variety of gluten-free, 99 percent fat-free, non-GMO, hot ‘n’ crunchy potato snacks, along with the popular super food, all menu items are vegan or vegetarian, including the 50 innovative made-in-house signature dipping-sauces, dairy-free soups, fair trade beverages, and desserts.

In business since 2012, a high volume of interest in the restaurant resulted in 3 Potato 4 franchising in 2013. Today the restaurant has shops in San Francisco, Las Vegas, and New Orleans, with locations soon to open in Pasadena and Oakland, California. “So many tourists, schools, medical institutions, veterans, and independent business owners have expressed their love for the concept and desire to bring it to their areas,” says Guenevere Blanchard, founder of 3 Potato 4.

Franchising USA

reen!

The 3 Potato 4 concept originated out of necessity: A place where everyone could eat regardless of food allergies or personal beliefs. Recently cited in the Huffington Post: “Today the gluten-free food market is a $4.2 billion dollar industry and interest has extended to the restaurant industry as well. A recent study done by The NDP Group found that 200 million restaurant visits in the past year included a gluten-free order. ‘The number of U.S. adults who say they are cutting down on or avoiding gluten is too large for restaurant operators to ignore,’ said Bonnie Riggs, a restaurant industry analyst for NDP.” Another study done by Vegetarian Times shows that 7.3 million Americans are vegetarians, and an additional 22.8 million follow a vegetarian-inclined diet, while Google Trends states public interest in a vegan diet is higher than ever before. In addition to the huge consumer demand for gluten-free products, the simplicity behind creating a vegan/vegetarian menu that offers a variety of healthy, tasty treats with a product that is already so widely loved made it easy for 3 Potato 4 to fill the niche in these markets.

3 Potato 4 restaurants are decked out in a 1950s sci-fi theme. Based on the notion that in the fifties people were eating organic, GMO-free potatoes, it speaks to how the idea of eating organic today seems futuristic, while the sci-fi traits tie in to appeal to all generations. Above all else the brand offers low-pressure, educational advertising that is fun for everyone. 3 Potato 4 restaurants feature fun, informative posters, boosting facts

“Today the gluten-free food market is a $4.2 billion dollar industry and interest has extended to the restaurant industry as well.” such as, “One Potato Has More Potassium Than a Banana,” and “Potatoes Have 37% of Your Daily Vitamin C.” Today 3 Potato 4 is looking for franchisees to expand in areas throughout the western states, key markets include California, Oregon, Colorado, and Louisiana. Seeking individuals who have a great work ethic and entrepreneurial spirit, candidates with backgrounds in marketing, management or customer service are a great fit for the type of innovative food concept the business offers. “Someone who believes in the benefit of providing their community with healthier food options is also key,” Blanchard says, adding that the company has recently been receiving a lot of

inquiries from professionals who have been laid-off and are now considering 3 Potato 4 franchises for job stability and a productive use of working capital. As banks are also lending less today, the low investment of a 3 Potato 4 franchise is considered a lower risk. 3 Potato 4 franchises start at $80,000.

3 Potato 4’s franchising process involves a step-by-step mutual evaluation designed to provide both parties with the information needed to make an educated and informed decision as to whether or not the company is right for the individual, and vice versa.

Once a candidate shows interest in owning a franchise they will chat with a franchise agent to learn more about the opportunity.

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3 Potato 4

“If you have a business that is eco-wise, streamline, and serves a healthy product that people already know and love, you’re off to a good start.” kid who loves fries to delicate digestive seniors who grew up on the crop.” 3 Potato 4 serves the renowned, high-fiber food and turns it into an eco-wise product with lots of specialty add-ons such as vegan bacon bits, Ghost Pepper, and Black Lava sea salt. Potato options include; russets, redskins, sweet potatoes, crinkle cut, purple potato medleys, or curly-Qs. Highlighting its streamline set up, 3 Potato 4 restaurants can operate in 300 to 1000 sq ft locations, making rent considerably lower even in major metro areas. The small space also means most locations only require one operator, so labor costs are also low, resulting in higher margins.

Following up with a non-disclosure document, further discussions are held before candidates attend a Discovery Day, and review the FDD. If a match is made, the new franchisee signs the franchise agreement and begins training.

Offering a very hands on program, 3 Potato 4 supports the franchisees throughout their pre-opening, grand opening, and provides super assistance with site selection. “We run a lot of demographic studies in the areas franchisees request to open in, then we cross reference the results with population, foot traffic, public transportation, schools, property availability and cost per square footage,” Blanchard explains. “We go through a check list to help encourage franchisees to open in an area that is really going to work for them by supplying a fluid customer base.” Hosting training at the franchisee’s space station, Blanchard travels to their location so they can become comfortable in the new environment.

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Training covers everything from online education, operational support, customer service and practices for training staff, and financial, management, and marketing tools. “We guide our franchisees to running and maintaining their 3 Potato 4 location using our streamlined operating system,” she says, adding, “We know that our success is dependent on their success, that is why we have great interest in being there when they need help and support.” 3 Potato 4’s current veteran applicants love the company’s efficient and streamlined approach, as well as the ease of operations.

“We provide detailed operation manuals and ongoing training, and our veterans are quick learners,” Blanchard says.

Setting the quick service restaurant apart from its competitors is its creative approach towards organic stability.

“Our mission is to provide food friendly options in an environmentally friendly way,” Blanchard says. “3 Potato 4 offers something for everyone from the energetic

A member and supporters of green business and shop green initiatives, “Sorry Kermit, it is easy being green,” laughs Blanchard, noting the vast variety of cost-efficient, recyclable, biodegradable, and compostable packing available today.

3 Potato 4 serves customers the organic product in a biodegradable paper cone, and the to-go containers, soup bowls and coffee cups are made out of potato starch.

“The entire business is biodynamic in that everything we’re serving our customer is consumable, compostable, recyclable or bio-degradable,” she explains, adding, “We’re using the potato from start to finish.”

Wishing to share her winning concept, “If you have a business that is eco-wise, streamline, and serves a healthy product that people already know and love, you’re off to a good start,” Blanchard says. “Many new franchise concepts are clever and efficient, replacing the archaic concepts that have been done over and over with a new name. Consumers are asking for healthy options, and we’re listening!”

For more information: Website: www.3potato4potato.com

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INTERESTED IN BUYING A FRANCHISE? FranChoice is the nation’s leading network of franchise consultants.

If you’re looking at franchise ownership as a way to diversify your portfolio or start you dream job - but don’t know where to start - give George a call.

George will use his extensive business and franchise experience to advise and guide you to your perfect business opportunity.

George Knauf

www.franchoice.com/GKnauf 540-351-6185 gknauf@franchoice.com Franchising USA

prof ile

M oney M ailer

COUPONS MEAN BUSINESS!

B2B Franchise Delivers Consumer Savings On All Platforms !

“Coming off the best year in its 34-year history, Money Mailer is primed to open new markets and expanding its 200 unit franchise system nationwide.”

Direct mail, Internet, SMS mobile text messaging, email marketing, smart phone apps and social media. Money Mailer has re-invented marketing for local businesses.

Coming off the best year in its 34-year history, Money Mailer is primed to open new markets and expanding its 200 unit franchise system nationwide. They are looking for savvy sales and marketing professionals who want to build their own marketing services business in an exclusive, protected territory.

A Money Mailer franchise is an in-house ad agency resource for local neighborhood businesses. Franchisees show local business owners how to target the right prospects with money saving offers delivered to these prospects homes with direct mail, on the Internet, to mobile devices and social media. This integrated media package is provided to the business for pennies per household.

Franchisees do the consulting, Money Mailer does the rest. Once a campaign is finalized it is sent to Money Mailer for ad design, production, mailing and digital placements. Franchisees provide a valuable service to their communities, helping

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local businesses grow their operations and increase market share.

Franchisees become local marketing experts starting with two weeks of intensive classroom curriculum at Money Mailer University (MMU). Here they learn how to use proprietary web-based targeting technology, access robust marketing databases for high-impact proposals and master a consultative sales process that differentiates them from everyone else just “selling advertising.”

After MMU a dedicated, field-based Franchise Performance Coach spends several weeks in the new franchisee’s territory to ensure a successful startup.

Lead generation is provided along with an aggressive launch package designed for rapid cash flow. Franchisees are predominantly home-office based so no storefront or inventory required.

Money Mailer is laser-focused on local, neighborhood businesses, a strategic advantage called hyper-local marketing.

This hyper-local focus originated in 1979 when the Company’s founder was approached by a Chamber of Commerce that wanted to create awareness for products and services offered by local merchants. The first Money Mailer shared mail envelope was created and filled with offers that produced instant success and the rest is history.

Today offers in the unique, over-size

Money Mailer red-white-and-blue shared mail envelope are surrounded with an integrated menu of online, mobile and social media so local businesses can now reach consumers at home, on-thego with or without a physical coupon for redemption. A world-class smart phone app makes all offers instantly accessible.

“Many candidates think Money Mailer is sold out. In fact we have over 150 open territories nationwide including great markets like Orange County, CA, Austin, San Antonio, Seattle, Chicago and Northern Virginia,” said Dennis Jenkins, VP Franchise Licensing, a 14-year Money Mailer veteran. “It’s the perfect time to consider this franchise. Consumers need to save money. Local businesses need our expertise more than ever.”

Money Mailer’s single territory franchise fee is $50,000.

For more information: Website: www.franchise.moneymailer.com Phone: 888.446.4648 Email: franchiseleads@moneymailer.com

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ex per t advice

David Banfield, President of The Interface Financial Group

Small Business Fundi Thinking Outside of the Box

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ding “Small business owners should always remember that when their bank says ‘no’ or ‘no more’, that is not necessarily the end of the search.”

If you ask a dozen so called economy experts to opine on whether the economy is improving or declining, you are likely to get a 50/50 split. As with many such intangibles, there is probably no accurate answer to the question.

One thing we know for certain is that when there is a downturn in the economy, the small business community is invariably the hardest hit and suffers the most through any downturn. When we realize that the small business area of the economy is the only real job creator, the situation becomes even more baffling

- why wouldn’t there be more help and stimulus for small business when it returns so much to the economy? That’s another question for which there seems to be no ready-made answer.

As a small business grows it always needs more capital, and as that capital is added the small business grows and again needs more capital. It is a never-ending upward spiral. However, it is that growth capital that is so elusive in these difficult economic times. Many entrepreneurs have found the ‘closed’ sign on the door at their bank when they were seeking out some conventional funding for their expansion plans. Historically banks have been the capital provider for business at all levels.

If the banks are ‘closed’ does that mean no growth? We think not as there are alternatives in the secondary finance marketplace. Unfortunately for many entrepreneurs the secondary market is either little known or rarely explored.

There are however many options that small business owners should explore if their bank has not been able to service their immediate needs.

Virtually all small businesses have some assets, and it is often these assets that can form the basis for an ‘outside the box’ opportunity. In many cases these facilities prove to be even more flexible than a bank loan as they often grow with the expansion of the company.

Just what are these options? There are several, and some can be tailored to the specific needs of the individual user company. In the area of imports for example, a small business wishing to import goods would often be required to establish a letter of credit. The normal process would be to approach one’s bank, and they would open the facility and use the assets of the company as the required security or margin. Those facilities are now hard to find for many

Franchising USA

ex per t advice

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ex per t advice

David Banfield, President of The Interface Financial Group

“Accessing capital is the key to growth and job creation for most small businesses.”

small businesses. When this happens, they need to turn to specialist export finance companies that have developed many creative ways to assist with imports without necessarily tying up the entire asset base of the importer.

Alongside this type of finance is that of purchase order finance. There is probably nothing as frustrating for small business owners than winning a major order from a substantial customer, only to have to decline the order as the company lacks the ability to finance either the import or manufacture of the goods. Once again there are a number of specialist purchase order finance entities that can create a facility based on the value of the order and the subsequent receivable.

These approaches represent the ability to finance a future order and sale, and the creative methods that already exist outside of the banking arena.

There are also similarly creative methods to work with assets already created by small business owners. This could be in the form of equipment or real estate. If such assets exist, then they form the basis of a medium to long-term funding solution.

This could come in the form of an asset based loan, mortgage, or a sale and lease back of equipment or rolling stock. Again, it is a case of using assets already on ‘the books’ and unlocking the availability of credit that they represent.

Also, in this category there is the ability to unlock capital locked up in accounts receivable. The majority of business owners know only too well the frustration of selling a product or service, and then having to wait anywhere from 30 to 90 days before payment is received. This can be a damaging drain on a supplier’s cash

Franchising USA

flow. The solution lays in two ‘out of the box’ options.

The first would be the fairly well known approach in the form of factoring. In basic terms this is the practice of using accounts receivable as collateral for a revolving line of credit. Not only does this create cash flow, but because the credit facility is geared to receivables, as they increase with company growth so does the credit facility. Many factoring companies offer this service, which also incorporates a full accounts receivable administration facility thus relieving the client company of the day-to-day needs for maintaining a credit and collection department. Factoring has a long history of helping small and mediumsized business achieve their full growth potential. They essentially just unlock capital that the small business already has to provide the framework for growth.

Of a similar style is a lesser known cash flow accelerator called invoice discounting. It is similar to factoring in that it works with accounts receivable to provide the funding base. It is also similar in that it focuses on unlocking capital tied up in receivables. The difference is that invoice discounting basically represents a buy-sell transaction for a single invoice or batch of invoices. While factoring, on the other hand, focuses on a total portfolio management approach.

Invoice discounters are able to offer custom-made programs that are geared to a ‘use-it-when-needed’ basis. In other words, the client company can elect to turn one or more receivables into instant cash through discounting as their individual need arises. Because the facility is structured as a buy-sell arrangement there is no ‘loan’ and, as such, nothing to repay at a later date. Settlement of the invoice at

David Banfield

the end of the credit period by the client’s customer completes the transaction. This is also usually an ‘off balance sheet’ form of financing and, therefore, does not impact on the client’s credit standing.

Accessing capital is the key to growth and job creation for most small businesses.

When a company already has that capital in one form or another it just becomes a case of finding the right vehicle that will unlock the capital and turn it into instant working capital. There are many facilities outside of the banking area that provide just such an option.

Small business owners should always remember that when their bank says ‘no’ or ‘no more,’ that is not necessarily the end of the search. Looking outside of the box and into the secondary financing market can often provide solutions that will create growth and job creation.

David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years.

He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status.

Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas.

For more information: Website: www.interfacefinancial.com

Page 19

————————————�����———————————— EXPERIENCE�THE�EXHILARATION�AND�FREEDOM�OF�OWNING�YOUR�OWN�RESTAURANT��

Russo’s Coal-fired Italian Kitchen concept grows more sales per sq/� then our competitors in today’s market place by using fresh, premium ingredients, authentic Italian recipes and old world charm and hospitality. Find out how we set ourselves far apart from other Italian restaurants and let us share with you our food, our passion, and above all, the secrets to our success. For more information, call 855.978.7767 or visit RussoRestaurants.com.

��&�

$1,057,516.93 $216,253.59 AVERAGE�ANNUAL�GROSS�SALES

OR��������AVERAGE�FOOD�COSTS

$251,896.16 OR��������AVERAGE�PRE�TAX� CASH�FLOW

These figures represent the average restaurant revenue of four (4) domestic Company-operated Russo’s New York Pizzeria locations of various designs and sizes for our fiscal year ended December 31, 2012, along with average Food Costs and Pre-Tax Cash Flows for the four (4) domestic Company-operated Russo’s New York Pizzeria outlets only. Actual results could vary substantially from unit to unit and Franchisor cannot estimate the results of any particular franchise. In arriving at our Food Cost calculation, the food costs at the Company-operated Russo’s New York Pizzeria Westheimer location were reduced by 4% because that is the Corporate Training store for Franchisees. The Average Pre-Tax Cash flow does not include a royalty fee because these locations are Company-operated. The expenses incurred by a franchised restaurant will include our standard royalty fee. Because Russo’s operates 5 Company-operated Restaurants (4 Russo’s New York Pizzeria and 1 Russo’s Coal-Fired Italian Kitchen locations), we are able to achieve certain economies of scale and operational efficiencies that may not be available to a Franchisee operating one Restaurant, as is the case for the typical Franchisee. However, the income from our Company-operated Restaurants ultimately must bear costs of our management team and other corporate office overhead. These costs are not reflected in the foregoing cash flow data, which reflect operational cash flows at the Restaurant level, excluding the burden of corporate overhead. We are also able to obtain economies of scale in other areas, such as insurance, that may not be available to Franchisees. Because of the size of our operations, insurance risks are spread over multiple Restaurants, which enables us to bargain for lower group-rate insurance costs. We are also able to use the size of our operations to achieve volume discounts and other cost savings based on our purchasing power. These cost savings, in areas including telephone services and marketing, may not be available to Franchisees operating on a smaller scale. CAUTION – AS A CONSEQUENCE OF THE FACTORS DISCUSSED ABOVE, AND OTHER VARIABLES THAT WE CANNOT ACCURATELY PREDICT, A NEW FRANCHISEE’S INDIVIDUAL FINANCIAL RESULTS ARE LIKELY TO DIFFER FROM THE RESULTS SHOWN IN THESE FIGURES.

��•��•��•��•��•���•��•���•��•���•� Franchising USA

prof ile

SurePay roll

Easy Online SurePayroll for Franchises Freeing up Payroll to Focus on Your Franchise

Owning your own franchise can be very rewarding, but isn’t easy. While you have more control, there is risk involved. It’s hard work, and there are now multiple employees and their families depending on your sound management.

Franchise Management Portal allows you easy access to run your entire payroll. Click from one business to another and process payroll for all franchises or have managers at each location process for you – all through one secure portal. It’s so secure that SurePayroll is trusted by more of the nation’s leading banks for their small business customer’s online payroll than any other provider.

You think of it every time you struggle through payroll – this is one administrative duty that carries inherent risk. Trying to do this yourself can be complicated, and costly. You aren’t a tax expert and there is a lot at stake!

It just takes a few minutes with three easy steps. Your employees receive direct deposit and can view their payroll information from a secure online employee portal. You can access pay stubs and reports 24/7!

Put simply, it’s high risk with low reward. According to the U.S. Chamber of Commerce, about one third of small business owners make payroll mistakes each year incurring costly IRS fines and penalties.

Using a trusted, online payroll service like SurePayroll makes it easy and affordable to accurately pay your employees on time, and with SurePayroll your federal, state and local payroll taxes are paid and filed automatically helping you keep up with ever-changing tax laws. Now that’s peace of mind!

Whether you own 200 franchises across 10 states or a couple of franchises in neighboring towns, don’t waste your time hassling with separate processes or vendors. SurePayroll’s innovative

Franchising USA

Here at SurePayroll we get it; you’re not sitting in an office all day, you’re constantly on the go. Our industry-leading technology lets you run payroll from anywhere with Internet access - even your Smartphone! You just enter, preview and approve.

Plus – as a wholly owned subsidiary of Paychex, SurePayroll is backed by 40 years of payroll experience. SurePayroll’s Customer Care team provides payroll support from award-winning U.S.-based specialists. Live representatives are available six days a week through phone, email or live chat. You don’t get that from payroll software!

With SurePayroll You’ll Receive: • Easy Online SurePayroll for Franchises.

Run anytime, anywhere with automatic

tax pay and file for federal, state and local taxes. Eliminate double entry

as SurePayroll easily integrates with

the leading time clock and accounting software products.

• An Easy Franchise Management Portal.

One secure login provides instant

online access to manage payroll for all

franchises. Access payroll reports from one place.

• Affordable Billing. Monthly

Subscription rate. Free Enrollment.

Signing up is easy. There is nothing to install and there’s no major implementation.

• Accessible Support. If you have

questions or need assistance, you’ll have award-winning payroll specialists ready

to help six days a week via phone, email and online chat.

SurePayroll is trusted by franchisors nationwide.

For more information: Website: www.Surepayroll.com/franchise-payroll.asp Phone: 1-877-954-7873.

Page 21

Franchising USA

ex per t advice

Andre Kay, CEO & Chief Marketing Officer of Sociallybuzz

3 Simple Facebook

to Incre ase Customer Enga “When people engage with your post, their friends may see it as a story in their own news feeds, which means you’ll reach more people.”

Here are three simple features to start using now.

1) Targeting: Andre Kay

Facebook is a social platform with many moving parts that franchises can utilize to grow their businesses and engage an audience.

On the surface, the basic features may be recognizable. However, digging deeper reveals features within Facebook that can significantly change how one interacts with this social channel.

If you’re a franchise that has multiple locations or serves customers in multiple cities, this is a phenomenal feature to tailor specific content or messages. Users can add targeting to page posts so that only the most relevant people will see them in their News Feeds.

To add targeting: 1. Click the your post.

symbol before publishing

2. Click Add Targeting and select one or more filters: • Gender • Relationship Status • Educational Status • Interested In

• Age • Location • Language 3. Click the options on the right to select who to target the post to. For example, when you target by location, All Locations is automatically selected.

Click the drop down arrow to select the Country, Region, State or City you would like to target.

As you add filters, the number of people your post is targeted to will update next to Targeted To. The more filters you add, the fewer people you will target. The minimum number of people you can target your post to is 20.

One very important thing to know is that by adding News Feed targeting, it does not affect who can see the post on your Page.

2) When Your Fans Are Online: You may have read countless articles, ebooks, or case studies on the best time to post to your Facebook. However, nothing is more accurate than posting during the time your fans are online. By using the When Your Fans Are Online section in the Posts tab of your page, insights will be available showcasing graphs that show the time of day and days of the week when people who like your page are on Facebook.

This particular insight information is priceless because you can use this to post

Franchising USA

k Features

agement

page and their friends see your message.

- Get More Views In News Feed Showing your posts to more people in desktop and mobile news feeds will

encourage likes, comments and shares.

- Expand Your Audience When people engage with your post, their friends may see it as a story in their own news feeds, which means you’ll reach more people.

Facebook is a free social network with the exact time and day that most of your fans might see your message. This is more important now than ever, since only about four percent of your fans actually see your post. Knowing when your fan base is online can help increase that number and give more visibility to your most important messages and content.

3) Promoted Posts: In December, Facebook stated: “We expect organic distribution of an individual page’s posts to gradually

decline over time as we continually work to make sure people have a meaningful experience on the site.”

This simply means that not all of your fans will see the message or content posted on your page. If you’ve already spent thousands of dollars to increase your likes/fan base, this will be a very touchy subject. In addition to creating relevant content for your page, you will need to invest in boosting your page’s content to continue reaching more people. An easy way to reach more people with your posts in news feed is by using Promoted Posts. Promoting your post increases the likelihood that people will see your message in their newsfeed.

- Promote An Important Post On your page, add a budget to a new or existing post so more people like your

billions of users and franchises using

this channel to communicate, engage and interact with existing customers or to

reach new ones. These simple features can help you to utilize Facebook in order to

continue building, engaging and growing your business.

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.

For more information: Website: www.sociallybuzz.wordpress.com

“In addition to creating relevant content for your page, you will need to invest in boosting your page’s content to continue reaching more people.”

Franchising USA

ex per t advice

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f ra nchisor in depth

B enniga n’s

B enn i g a n ’ s :

A Legendary Franch Bennigan’s entry into food service 38 years ago launched the beginning of the casual dining niche and introduced the world to a new kind of restaurant experience.

Today, the brand is growing in new territories and is looking for savvy, passionate franchisees to join its team.

Founded in 1976 by the iconic Norman Brinker, Bennigan’s was designed to fill the gap between fast food and fine dining while being a family friendly, Legendary experience. Opening the first location in Atlanta, GA, the space featured a full service food and beverage menu offered at an affordable and high value oriented price point.

Bennigan’s grew to around 400 restaurants before filing for bankruptcy in 2008, when all of the U.S. corporate locations closed. However, the U.S. and international franchised restaurants remained open due to Bennigan’s tenacious franchisees and supplier partners who carried the banner and proved the strength and the value of the brand.

In 2010, Bennigan’s began its renaissance and has now restored itself, once again, to the top of the casual dining segment. Now with over 150 restaurants open or under contract worldwide, Bennigan’s Franchising Company is poised to more than double its size in the coming years.

“Bennigan’s rapid growth demonstrates the strength of the brand, its iconic nature, and the emotional connection consumers have with the brand,” says Paul Mangiamele, CEO of Bennigan’s.

The new generation of Bennigan’s restaurants fits a distinct prototype that includes a revamped chef-driven menu, innovative beverages, a fresh look and authentic feel. “The restaurants are cool, hip, efficient and high energy; they are forward looking and feeling but keep vestiges of our heritage,” says Mangiamele.

Franchising USA

hise Opportunity Bennigan’s is now focused on attracting the millennial generation, having already won over the baby boomers through the brand’s nostalgia and tolerance for only the highest standards. The new prototype features a shotgun, or one-sided, bar that allows for open sight-lines to the kitchen, ensuring that the food is the star in the dining room.

“We’re looking for eagles; individuals who fly high, do a superior job every day and bleed green.”

Bennigan’s is also moving forward with its latest development, Bennigan’s On the Fly. These fast casual, non-traditional restaurants are located in high-traffic areas such as airports, train stations, university food courts and hospitals. Pushing to create a blended investment and return, these locations are ideal in markets with an established Bennigan’s presence.

This concept has already gained a lot of attention in international markets, with the first location opening in a train station in South Korea.

“We’re moving strongly forward again, and that’s a testament to the strength of our brand, our franchisees, corporate staff and the great supplier partners we have on our team,” says Mangiamele, adding that Bennigan’s sister brand, Steak and Ale, will also be making a comeback this year.

Now poised for a major growth spurt, today Bennigan’s operates throughout 15 states and 12 countries. One of the latest additions to the Bennigan’s family has been awarded a master license for the Indian subcontinent, committing to 50 restaurants over the next several years.

The first location is projected to open this spring in Mumbai. Ten additional Bennigan’s restaurants are on tap for the United Arab Emirates, where two popular locations are already in operation.

Other key areas of international development include Algeria, Ecuador, Mexico, Central America, Cyprus and South Korea. “Wherever the arithmetic makes sense, we’ll look into developing,” Mangiamele says.

Potential Bennigan’s franchisees must have the determination to succeed, “bleed green” and have a 25/8 attitude towards the brand and the business. “The restaurant industry is not for the faint of heart, so franchisees need to have a strong work ethic and love what they are doing,” Mangiamele says. Potential franchisees must also be financially sound with a considerable net worth and liquidity to build and open their restaurants, while

possessing the working capital reserves to get them through their first six months of operation. Candidates must also understand the importance of delivering the brand’s “Legendary” customer service.

“We’ve started a revolution where casual dining is responsible for delivering great service, and in our case, we take it from great and make it Legendary,” he says.

“We have great chef-driven food with unique flavors that appeal to our customer base. We turn our customers into guests and those guests are loyal and ‘lifetime.’

For us, that’s what it’s all about.”

Bennigan’s is seeking candidates who are current franchisees with other noncompeting brands, who understand the

Franchising USA

f ra nchisor in depth

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f ra nchisor in depth

B enniga n’s

“We’ve started a revolution where casual dining is responsible for delivering great service, and in our case, we take it from great and make it Legendary.”

franchisee or location,” Mangiamele says.

“Bennigan’s corporate team plays a huge role in selecting franchisees and general managers because we know what it takes to be successful, and what has made Bennigan’s so successful.”

need to adhere to the company’s standards and accountabilities, and are capable of following a system.

“We’re looking for eagles; individuals who fly high, do a superior job every day and bleed green,” Mangiamele explains. Ideal candidates are those looking to pursue multi-unit development while delivering Bennigan’s renowned experience to guests.

The initial fee to own a Bennigan’s franchise is $35,000 with a royalty of four percent and an additional one percent going to marketing, which is significantly lower than other casual dining franchise organizations. Mangiamele wants to attract potential franchisees that are looking for strength and value in an iconic brand.

The franchising process at Bennigan’s provides franchisees with the infrastructure and resources needed to be successful in a competitive industry.

Starting with an inquiry, application process, and Franchise Disclosure Document (FDD) review, the Bennigan’s team then provides training for all levels

Franchising USA

in every area of the business, keeping their promise to deliver respect, trust and integrity throughout the entire process.

Candidates have the option to attend a Discovery Day in order to speak with Bennigan’s senior executives about the opportunity, support and guidance available to all franchisees.

The intensive, competency-based training runs between two and eight weeks and covers how to operate a business from soup to nuts. “We set expectations for franchisees from a financial standpoint and show them how to achieve these goals through inventory control, menu control, management, labor, food costs and all other functionalities of the business,” Mangiamele explains.

Bennigan’s detail-oriented selection process for approving franchisees and general managers is one of the key factors in the brand’s recent success and growth. “Training and franchisee selection is critical because Bennigan’s will only ever be as strong as its weakest

Members of Bennigan’s corporate team offer 25/8 support through a variety of different methods including the online training module, Bennigan’s University.

“It’s one thing to create the training, but the key to success is to constantly refine the training because we are always learning,” Mangiamele says.

Bennigan’s recognizes the possibility of dramatic retention loss and, therefore, reinforces training from the beginning.

Franchise owners are provided with modules to follow for both front and back of house that cover everything from training and safety to bartending and brand ambassador responsibilities.

Bennigan’s corporate staff members visit restaurants, stay informed about local markets, handle social media and provide four-walls marketing to ensure every location operates to Bennigan’s high standards.

“The corporate team bleeds green, and that speaks to the passion they have for the brand and is represented in the strength of the support we give our franchisees,” Mangiamele says, adding, “If our franchisees need anything, all they have to do is pick up the phone.”

A unique aspect of the Bennigan’s brand is

its non-existent development department.

That’s because Mangiamele himself covers this area. “People want to talk to the person with the vision, the CEO of the company,” he says. “When people show franchise interest, I am the one shaking their hand and giving approvals on locations.”

After reenergizing and revitalizing the brand, Mangiamele is 100 percent dedicated to paying attention to the elite qualifications of potential franchise owners and ensuring corporate involvement at all levels.

Bennigan’s also recently received an award from the Coalition to Salute America’s Heroes for its nationwide support of the leading veterans charity through its Wall of Heroes campaign. The program, in its second year in 2013, encouraged guests to purchase a drink and write a message of appreciation to an active-duty soldier or veteran, then post it on Bennigan’s Wall of Heroes mini-site. For every photo posted, the company donated one dollar to the Coalition.

Bennigan’s is catching the attention of many, and the brand is benefiting greatly from positive word-of-mouth.

Customers are not only verbally sharing their experience with friends, family and co-workers, but also posting, uploading and sharing their opinions on social media sites such as Yelp!, Four Square, Facebook, Twitter and Instagram. The Bennigan’s corporate team manages

and directs the majority of the brand’s marketing such as public relations, direct mail, radio and outdoor advertising. In turn, franchisees are responsible for sustaining the marketing initiatives at the local level. Through direct and regular communication with the corporate team, franchisees can easily coordinate branded and consistent messaging.

Brand ambassadors for each location are responsible for augmenting grassroots marketing, a hyper-critical factor for success in today’s competitive market.

Each location is provided with binders detailing neighborhood marketing activities and corporate-directed webinars outline key initiatives, allowing them to market to their local areas efficiently and effectively.

“To celebrate the success of our brand’s resurgence, we are hosting all our Franchisees and General Managers at our Global Franchise Conference next month in Fort Worth,” said Mangiamele. This event will allow Franchisees, General Managers and the corporate team to share their ideas regarding the restaurant’s menu, vision, initiatives, programs, marketing and operations. “I’m proud to announce that our keynote presenter will be Jim Sullivan, a world-renowned restaurant expert that I’ve known for many years,” he said. “Jim will speak candidly and directly about the importance of recruitment, training, operations, flawless execution and how going Above and Beyond the Call of Duty, (ABCD), will

strengthen the emotional connection we enjoy with our guests.”

When talking about the company’s enhanced culture, Mangiamele expresses the importance of creating an atmosphere where the Bennigan’s staff performs in a manner that shows guests they truly care about their experience. “One of the key ways Bennigan’s differentiates itself from so many other brands out there is that we’re not in it just for the money,” he says. “At Bennigan’s, it’s not just service, it’s Legendary service. It’s not just an experience, it’s a Legendary experience.

It’s not just good food with ample portions, it’s chef-driven food that’s different from what you can get anywhere else. While we all want to make money, it is not our sole motivation. We have found that the more we are focused on the right things, like a strong value proposition and delivering on our ‘Legendary’ promise to our guests, the profits follow.”

With ample room for growth, both in domestic and overseas markets, Bennigan’s is actively seeking the right individuals to join its restaurant revolution. “If you’re ready to work hard, have what it takes to win in an ultra-competitive marketplace and are looking to make an investment in an iconic brand, this could be the brand for you,” Mangiamele concludes.

For more information: Website: www.bennigans.com/franchiseoverview/ Phone: 1-855-GOT-BENN

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f ra nchisor in depth

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ex per t advice

Adam Heitzman, Co-Founder & Managing Partner at HigherVisibility

SEO Tip:

Content Management at the Fr anchise Le vel “It’s important you consider the content you have on other websites across the web in order to earn visibility, links, and hopefully foster leads.”

Different Content Management Strategies for Franchises

Adam Heitzman

Managing SEO for a franchise can get overwhelming to say the least, so it helps to break SEO down into parts to determine what strategies work best.

Once you determine who is going to manage SEO (I recommend putting your budget and management into the hands of the national branch, which you can learn more about here), you can focus on different aspects. Of course, content is the biggest and arguably the most important, so understanding different content strategies for franchises is a good place to start.

Franchising USA

Content management encompasses a few different things: First, you have to make sure that you have fresh content on all of your franchise websites (if you have more than one) and you have to make sure the content is relevant. Second, you need to be able to market that content, particularly through social media. Third, it’s important you consider the content you have on other websites across the web in order to earn visibility, links, and hopefully foster leads.

Below lists a few of the different strategies you can use when you’re talking about just the first step: Creating content. You need to know who is going to write your content, who is going to edit and publish, and how you’re going to keep it all organized.

• Manage content at the national level to keep things consistent and affordable.

This will depend upon whether you have one website for your franchise or a different website for each branch. If you have one website, it helps to keep things at the corporate level so that your website

remains consistent. If you have more than one website, it might make sense to have each branch determine what content goes on the website, but make sure all content is recorded in one spot so that you (the national manager) can make sure things are unified across all websites and the quality of the content is up to your standards. It’s also a good idea that the content goes through the national branch to be published.

This is also a great way to keep your costs down. You want your content to be incredibly relevant and personalized, and this will involve collecting different data and using different tools to determine what readers really want. If different managers had this power, it could get expensive and money would go quick.

• Hire writers based on certain criteria and divide up the different roles.

Different content roles include writers, those who come up with topics based on analytics, publishers, and editors (you could also put social media and promotion into this category, but that’s a story for a different day). Have one set of standards you want for each of these roles, and have

O

Page 29

10+YEARS SAME STORE SALES INCREASE TOP 5 FASTEST GROWING

LOW COST initial investment &

Over

SIMPLE operations & attractive

CONCEPTS IN THE U.S.

Focused high-quality menu

600 RESTAURANTS

STRONG AUV OF $901,000

600+ STORES

LOW OPERATING costs

unit economics

Focused, high-quality menu of made-to-order classic and boneless wings

COOKED TO ORDER

*

85 PROJECTED NEW locations TO open in 2014

FLEXIBLE footprint to

accommodate any venue

EASY executed, craveable

CLASSIC BONE-IN AND BONELESS WINGS

menu for all day parts

CUSTOM-FIT Square footage ranges from 550 to 3,000

70% of store sales are carryout

IMMEDIATE FRANCHISES AVAILABLE!

WINGSTOP.COM | 972.686.6500 *Figure reflects the average annual net sales for all Wingstop Restaurants (23 corporate and 458 franchise) in the system that were open during the entire period from January 1, 2012 through December 29, 2012, as published in Item 19 of our April 2013 Franchise Disclosure Document.

Of the 458 franchised restaurants, 185 (40%) had higher net sales during the reported period. The financial performance representation contained in Item 19 of our April 2013 Franchise Disclosure Document also includes average annual net sales information (1) separately for all franchised Wingstop Restaurants, and (2) separately for all company-owned Wingstop Restaurants, in operation in the United States during the referenced period. A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk. © 2014 Wingstop Restaurants Inc.

Franchising USA

ex per t advice

Adam Heitzman, Co-Founder & Managing Partner at HigherVisibility

those on the corporate level go out and hire. After all, they will be doing most, if not all, of the management, so it makes sense to do the hiring.

• Find content management system (CMS) software that works for you.

This is one of the more important things to consider. Choosing a CMS can be tricky, but this is particularly useful for franchises because they have more to manage, especially if you own quite a few different stores/locations. There are many choices out there, but all work to help you stay organized—create assignments, make scheduling easier, setup alerts, etc. Visit this link to see a list of the top rated 2014 CMS software including ExpressionEngine and eZ Publish.

• If CMS software doesn’t fit your goals, try creating one master spreadsheet or Google document, and create different tabs for each branch.

If you own a franchise, I recommend using Google Docs to stay organized if

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“Of course, content is the biggest and arguably the most important, so understanding different content strategies for franchises is a good place to start.” a CMS isn’t for you. You can share your document with whomever you wish, and all updates are made in real time. You can have different tabs and can switch over to those tabs easily if you need to do any comparisons or keep anything separated.

Have a column for a few different things: - The date the article is due - The date it was submitted - The date it was published - The writer assigned to the article.

- The title of the article.

- URL of the live article It’s important to understand that how you manage the actual creation of your content is going to be different than small businesses that are not franchises. You have much more to worry about and much more to keep organized, so having a solid plan is an absolute necessity.

Now what? Once you know the what,

when, where, why, and how of creating your content, you have to move on to the next steps that are listed above: marketing the content and publishing content across the web. You can read this article to learn more. These steps will also be slightly different if you’re working with a franchise as opposed to a traditional company, so it’s important to take your time setting everything up.

Do you own a franchise and have found a content strategy that works for you? Have you tried anything that didn’t work? Let us know your story and your thoughts in the comments below.

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/

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use Promo Code: FRANUSA Franchising USA

spotlig ht on ser vice

ASA P Accounting Ser v ices a nd Pay roll L LC

The Easy Accoun Providing essential financial services on a regular basis for both franchisors and franchisees, ASAP (Accounting Services And Payroll LLC), stands by the company’s slogan “Build Your Business, Not Your Back Office.”

Founded in the late 1980s by accountants trained in the franchise industry, ASAP has provided services to hundreds of clients throughout the United States.

Offering clients affordable solutions to

manage their business finances, ASAP supports franchise owners by supplying them with the services necessary to achieve great consistency in their performance. The result: smoothly operated, successful businesses.

With over two decades experience in the franchise industry, ASAP’s accountants have discovered that when business owners try to process detailed financial reports or taxes on their own, they often become distracted from their primary focus in running the enterprise; and that priority is taking care of their customers and employees while executing the daily operations. By turning to ASAP, these entrepreneurs become more confident operating their businesses with clear knowledge of the amount of money in their bank account, the profitability of

“ASAP offers a service that will not only design a reporting system for the business, but we can also come in and help educate franchisees on how to manage their costs.”

Franchising USA

the business, and the success of their initiatives, without having to crunch the numbers themselves.

“We’re able to relieve stress connected with financial matters and give confidence to clients in regards to their decisions about operations and the ongoing condition of their business,” says Tim Pahel, CPA, the Operations Manager and Supervising Accountant at ASAP. Providing outsourced accounting and bookkeeping services including financial reports, accounts payable, payroll, and tax services, ASAP accountants are an affordable third party alternative for business owners. “Our clients have come to the conclusion that processing the financial reports and related details for a business is not a good use of their time. It’s simply more expensive to do it on their own,” Alan Colner, an owner of ASAP explains, adding that it’s also more expensive to hire a third party without franchise experience.

With its extensive background in the franchise industry, ASAP has delivered services to franchise owners representing national brands in many categories,

nting Alternative including pizza, sandwiches and subs, yogurt, burgers, and various non-food groups. Possessing the specialized knowledge it takes to provide the financial services that businesses require to be successful, ASAP has become a preferred provider for large national brands in various franchise concepts. ASAP has a special expertise with QSR (Quick Service Restaurant) clients.

“Based on experience, unit owners whose financials are not done on a regular basis have a much poorer consistency of performance,” Colner says, adding that owners who have industry experts managing their financials tend to have a greater degree of confidence, a benefit that is critical to the success of their business.

The initial connection between a new client and an ASAP accountant typically involves gathering a range of information upfront, including the type of business owned by the client, the type of POS system, type of entity and the length of time the business has been in operation.

The accountant discusses the services ASAP has to offer to determine which

“We’re able to relieve stress connected with financial matters and give confidence to clients in regards to their decisions about operations and the ongoing condition of their business.” would be best suited to the business. The client then receives the accounting manual, which requests further essential data and presents the various services and prices.

Once the paperwork is signed, the client is entered into ASAP’s proprietary system and detailed discussions regarding the client’s business goals take place. These steps allow ASAP’s accountants to take a tailored approach to meet each client’s specific financial needs.

ASAP makes available a comprehensive range of financial services. Clients can choose the format that works best, either individual services, or a package where all the information and systems fit together conveniently.

In addition to supporting clients with services that organize their finances,

ASAP adds value to the process by delivering analytics to clients in ways that are easy to understand, thus providing specific data that will help them run a better business.

“While more established franchise concepts have their own information and POS systems which can connect directly to ASAP’s systems for us to process information from their franchisees, newer franchises may not have these systems in place,” Udi Laska, an owner of ASAP, explains. “ASAP offers a service that will not only design a reporting system for the business, but we can also come in and help educate franchisees on how to manage their costs. This allows franchisors to provide another module of education for franchisees.” Utilizing its expertise in the franchise industry, ASAP’s system raises

Franchising USA

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ASA P Accounting Ser v ices a nd Pay roll L LC

red flags should numbers unexpectedly deviate from normal. “Our systems allow us to tell if something is out of the ordinary. If a component of cost suddenly goes up significantly we’re going to ask ‘why’ and contact the client to discuss the change in performance,” he adds.

Bruce Journeay, CFE and Marketing Manager at ASAP, shares a prime example of the type of expertise and benefits ASAP’s team can offer in this short case study.

As Journeay describes, “One of ASAP’s accountants noticed that food cost was exceptionally high for one of our restaurant franchisee clients. I contacted the client and met with him to discuss the situation. The client was losing money because of high food cost and was unsure how to fix the problem. We surmised based on a series of questions and analytic procedures that there was theft in the store. We identified the nature of the theft and the responsible individuals. The ASAP accountant handling this client’s financials discovered further that the same employees stealing food were also manipulating the POS system to change the tax rate when they clocked in and change it back when they clocked out, and pocketing the difference. This is just one example of how ASAP’s team members are able to recognize a financial problem and help a client rectify the situation.”

Using ASAP’s set-up systems that are programmed to monitor client’s accounts and flag activity that appears to be out of the norm, ASAP can tackle issues fast and efficiently. Popular with food franchises, ASAP offers business owners quick solutions. As mentioned in the above case study, if a client’s food costs are running

Franchising USA

“We provide the financial tools to help clients be more successful.” higher than they should be, an ASAP consultant is available to contact the client to inform them and provide solutions. “We try to be proactive and pick up the phone to help clients make decisions as soon as incidents occur,” Journeay says. “We provide the financial tools to help clients be more successful.”

One of the main reasons franchise brands are so keen to have their franchisees use services like ASAP’s is to ensure the finances of their unit owners are kept updated and orderly. “We have seen many situations where a franchisee wants to obtain financing for expansion, either by opening new locations or acquiring existing stores, and if they don’t have current, well-constructed financials it makes it difficult to obtain financing,” Colner explains. “Clients who use our service are not only more successful in running their business, but also in expansion and obtaining the necessary capital for that purpose.”

What sets ASAP apart from various competing accounting businesses is that all the company’s services are executed domestically at an affordable price. While many competitors service clients with offshore operations, the fact that ASAP’s offices are centrally located in Denver and New York allows clients throughout the U.S. to connect with the company in real time. “Someone is always available to speak with clients and our system

offers the best of both worlds in that it is automated with staff that is readily available. It’s 100 percent user friendly,” Laska says. “Our system is set up in such a way that it’s easy for clients to access their data and submit information, wherever they want, whenever they want.”

Serving clients from a domestic base also allows ASAP’s accountants to know their clients better than a company stationed offshore. “Since other companies are working from different countries we have the advantage of being more familiar with how our clients’ businesses fit into the fabric of the cities where they’re located within the U.S. We have greater knowledge about what’s going on in their markets,” Pahel explains. In addition to this strength, ASAP’s employees’ combined years of experience with the franchise industry speaks volumes about the value they can deliver to their clients.

With hundreds of clients and ample staff to service the needs of these national franchise brands on a rapid basis, ASAP has the know-how required to accommodate and address businesses’ finances in a way that ensures clients are being provided with top-notch service all the time, anytime.

For more information: Website: www.asapaccounting.com Email: bruce@asapaccounting.com

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f ra nchisor in depth

Play N Trade

Fun Franchising with

Bringing to life a one-stop video game shop for buying, selling, trading, and repairing mobile entertainment, video game products, and services, Play N Trade (PNT) makes it easy for entrepreneurs nationwide to be a part of this innovative, fun franchise opportunity.

Founded in 2000 by Ron Simpson, Play N Trade was born to fill the gap the gaming world was missing: a franchise concept.

Since the arrival of the first Nintendo in 1986 the video game industry has been booming, and while rival company

Game Stop quickly grew to 6000 stores, their missing component was a franchise opportunity.

Building a franchise in this niche market Simpson made it possible for people to be a part of the industry by offering a franchise system that is both successful and fun. “The cultural impact of gaming presented an explosive opportunity,” says Simpson. Although gaming had a wide global distribution, the current retail distribution channel was not fulfilling the consumer demand for an interactive gaming experience, and the support infrastructure underserved the specialized needs of the gaming community.

Envisioning a retail environment where it was possible to know customers on a first name basis and sell to them based upon their buying habits, Simpson created Play N Trade’s business plan to include a personalized consultative selling process, in-store tournaments, fair pricing for used

games, and exceptional customer service.

Opening its first franchise in California in 2003, today PNT has 120 stores throughout North America, South America, and the Middle East. Each PNT store provides customers with the convenience of stopping in to repair a broken mobile phone or gaming device, buy the latest game or gadget, sell or trade their used devices and games for cash or credit, or simply hang out to check out the latest products with the store’s “try before you buy” service.

In 2012 PNT acquired Dimension, a Canadian video game store founded in 1996 that specialized in the sale, exchange and renting of games, consoles and accessories. Making PNT the biggest video game franchise network in Canada, with Dimension’s expertise PNT became more international and started offering more languages. “Today we’re not a 6000 unit chain, but we are the biggest franchisor in video game sector in the world,” says Charles Beaupre, CEO of PNT. For PNT the secret in its recipe isn’t to focus on new games, but trade.

“Videogames is a hard area because everyone jumped on them in 2007 before the economy crashed,” Beaupre explains, adding that with new software it’s rare to get 10 to 15 percent margin on products sold. Trade also brings in new customers. “One of the best distributors is the customer. They bring in the games, trade them for cash or credit to save on another purchase, or buy a new release,” he says. “The company’s name fits perfectly.

Customers play with their products, and then trade them in!”

Looking to expand its presence, PNT is looking for franchisees that are passionate about the industry, and more importantly,

Franchising USA

h Play N Trade “Today we’re not a 6000 unit chain, but we are the biggest franchisor in video game sector in the world.” about their customers. “It’s easy to say but not easy to get. When a franchise owner loves the customers and their employees, it makes all the difference,” Beaupre says. While franchisees must also have a sales ability and love for technology, if a candidate doesn’t have all the entrepreneurial expertise it’s okay because they will be taught everything they need to know about the business by Play N Trade’s team. The entry fee to purchase a PNT franchise is $30,000, with the total cost ranging between $150,000 to $200,000.

This depends on store size and includes all training, and inventory. PNT’s royalty is five percent.

PNT’s franchise process includes six key steps: Pre Qualification, Program Review, Disclosure Review, Franchisee Validation, Discovery Day, and Formalizing the Franchise Agreement.

During pre-qualification candidates work with either their local Area Developer or a PNT corporate member to learn about the opportunity and understand what type of candidate the company is seeking. The PNT rep will get to know the candidate and find out how much time the individual plans to invest in the day-to-day store operations.

Program Review educates the candidate on the benefits of being a PNT franchisee, the company’s mission, operations, marketing and management.

Disclosure Review reviews key areas of the FDD, Discover Day, funding options,

and prepares for franchisee validation calls.

Franchisee Validation reviews franchisee conversations, their preliminary approval of financing, and the Discovery Day checklist.

Step five is Discovery Day. During this face-to-face meeting the candidate tours local franchisee operations, meets with the CEO, senior executives, their local Area Developer, training, operations, marketing, and real estate executives.

During the Formalizing the Franchise Agreement phase the committee decides whether or to extend a franchise offer or disqualify a candidate. Ideally, committee approved candidates sign their agreement and pay the franchise fee before leaving the Discovery Day event.

Once all paperwork is signed the new franchisee works with PNT’s real estate executives to find a site. “It’s so important in retail, where you open is everything,” Beaupre says. “An amazing operator could

Franchising USA

f ra nchisor in depth

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f ra nchisor in depth

Play N Trade

“An amazing operator could have a hard time reaching goals without the proper site. On the other side, someone without all the expertise is still able to make money with the right site.” have a hard time reaching goals without the proper site. On the other side, someone without all the expertise is still able to make money with the right site.” While the franchisee is responsible for finding the territory, PNT sends a team member to approve of the site and assist in negotiation of the lease.

Next, franchisees undergo one month of training. Spending the first eight hours participating in classroom training, franchisees learn about culture sharing, tools, and technology. Franchisees are also given a manual covering A-Z of company operations. In March 2013 PNT invested in a unique Customer Relationship System (CRM). Comparing this software to the Berlin Wall, Beaupre says the new CRM breaks the divide between the franchisor and franchisees. “It’s important that PNT franchisees feel like a part of a family so we ensure they have access to communications, marketing, and training videos,” he says. “When a new franchisee joins they don’t feel alone because they have one corporate person with them in all

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processes of store training, and growth.”

In addition to operating their store, franchisees are a sister-store for other PNT shops, meaning they will be involved in helping other franchisees when needed.

After the classroom training franchisees spend two weeks working in an existing store alongside a franchisee, putting to practice everything they have learned.

Next they spend their first two weeks open working with a corporate member. “We don’t want franchisees to be alone during the first two weeks of being open, we offer corporate support to make the first two weeks a start to a successful future.”

Ongoing support is available to franchisees throughout PNT’s internal system. Relaying every franchisee on a single system where they can speak to each other and the corporate team, franchisees have access to phenomenal support. “It’s our way of saying ‘we are family,’ and if you need help, let us know.”

With 120 stores this means 120 support guides are available on the network, which along with the company’s POS system, is

owned and controlled by PNT. “Ongoing support and training is just as important as initial training,” Beaupre says.

While PNT marketing has evolved over the years, the company has taken its printing budget and transferred it to invest in digital distribution. “Every ad we create is available digitally for franchisees to choose which ones they wish to print and use,” Beaupre says. Rather than in the past where franchisees would receive packages of promo posters, today they download material that is relevant to their local markets. The remainder of PNT’s marketing dollars is invested in Facebook and Google ads, direct mail, YouTube, and local campaigns. “We are able to get more impressions for a better price,” Beaupre says. “All marketing materials are available to franchisees, so if someone wants to push their local campaign themselves we will teach them how to do so.” As a franchisor that focuses on the revenue of its franchisees, the only money PNT makes is from the sales of franchise stores. “Every new revenue stream needs to be built for the franchisee, not the franchisor.”

While PNT was known for being a video game store, the arrival of mobile devices, tablets, and smartphones changed things.

“PNT’s products (i.e. gaming consoles) used to have a life cycle of five years- the time between new console releases. When a new console is released people trade in their old ones for the new one and games.

When mobile devices arrived people weren’t buying the physical game but downloading the app so there was panic.

However, this is actually the best thing that could happen because the life cycle of mobile devices is much shorter than that of a console. Instead of a five year cycle, it’s one year,” Beaupre explains. And so, like sugar in a coffee, PNT added mobile devices to their system.

By the year 2016 17.5 billion people will own a smartphone so the PNT of tomorrow will allow customers to bring in their iPhones and tablets to upgrade to a new device. Referring to the business as “Play N Trade Entertainment,” Beaupre says that everything that can be played with will be at PNT. “No one else does the trade in business. It’s ecological, economical and techno. We are doing what Game Stop did 10 years ago with the video game market in that we don’t need to rely on the publisher, because the publisher is the customer,” he explains.

Investing 255,000 into redesigning the store space, PNT will be sporting two new

“It’s important that PNT franchisees feel like a part of a family so we ensure they have access to communications, marketing, and training videos.” prototypes: PNT 3.0 and PNT 4.0. Equip with a large model stand, the new look is designed so that all devices have the same importance as video games. In March 2014 all existing stores will switch to the PNT 3.0 model, while up and coming stores will be designed to boost the PNT 4.0 model. “We want franchisees to feel the experience of the physical social approach,” Beaupre says. “PNT 3.0 is a step towards the new model to facilitate the evolution for the franchisee.” All stores will also feature an area to repair products on site.

Recognized in 2008 as the number one growing franchise in the U.S., today PNT is rapidly growing internationally.

Changing its concept to become a trade and entertainment store, this notion is new to Latin America, which recently opened two PNT stores in Panama, and two in Columbia. The Middle East is also jumping on board, opening two stores in Egypt and signing a Master Franchise

Agreement to open 25 stores in the next five years. Last month China ended the ban on gaming consoles and has since connected with PNT to discuss business opportunities. Aiming to reach 3000 stores within the next three years, PNT will also introduce kiosk stores to their business plan in April 2014.

“We’re doing something not many people are doing, and that’s focusing on trade,” Beaupre explains. “Our message is different. Instead of promoting store sales we can give customers money while offering many services under the same roof. It’s quite unique.” With rumors of Apple soon to be offering the trade in service Beaupre isn’t worried about the competition because he says it will validate what PNT is doing. “The value of PNT franchise is greater than ever,” he adds.

For more information: Website: www. playntradevideogamefranchise.com/

Franchising USA

f ra nchisor in depth

Page 39

ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

Ways To Fund Your Dream Once the excitement of deciding to open your own franchise settles in, comes the next question: â&#x20AC;&#x153;How will I fund my new business?â&#x20AC;?

One piece of advice we give our candidates over and over again is to start this process early, well before you get approved for your franchise. Unless you will be starting your business with cash from your savings account, the method that you assemble your funding will play a critical role in your game plan.

Developing a funding plan may help to determine how many units or territories you request for approval. Finding the right financial team, and they are some stellar companies out there, can make a big difference in your growth plans.

Here are the most common ways we see people assembling their funding plan:

1

SBA Backed Funding

George Knauf

Franchising USA

The SBA has created a number of programs to assist new and growing business owners with funding. Most commonly used are their loan programs.

In these cases the SBA takes the position as a loan guarantor and provides security to what are often local lenders that write those loans. You could go to a bank in your neighborhood and ask them if they

offer a SBA loan program but going to lenders one by one can be very time

consuming. My suggestion would be to

use a loan broker to help you apply with

multiple carefully targeted lenders across the country that are most likely to loan

given your financial scenario or because of the franchise brand you are buying. This

approach lets you fill out one application for multiple lenders and have one point of contact. The SBA also has less used

surety bond programs and venture capital programs.

2

Conventional Loans

There are conventional loan programs out there that are not SBA backed but very

much worth considering. These may be

available through local lending institutions or National lending brokers. If you are a new business owner you are likely to be directed to SBA options as they reduce risk for the lender. Conventional loans

seem to be more often used for growth capital for existing operators.

3

Retirement Rollover

This is an approach that we have seen a handful of companies evolve over the past decade, or so. The idea with this approach is to use your retirement funds from past jobs, not current, and roll into a new corporation that is set up by the plan administrator. Once there they go into a new 401K that has been created and is set up to be self-directed meaning you would invest in the business you are starting. In doing all of this the plan administrators are confident that you are not triggering a tax or penalty for using those funds and you can repay them into your retirement account with interest as your company grows and starts making money. When you repay those funds it will be without a set payment schedule and the interest goes to your retirement account.

4

Home Equity Line of Credit

This approach was more commonly used at the peak of the real estate market. While still a viable option, lending in that space is still pretty tight and that sends most candidates back to SBA options.

5

Loan Against Stock or Bond Portfolio

If you have a portfolio of stocks or bonds that you would like to use to fund your new business, you don’t have to sell them and cash out. Your financial advisor can often use the portfolio as collateral and get a loan put together, usually at a very low interest rate. The advantage may be that if your stocks are likely to increase in value or pay a dividend then you still own them.

“It’s important you consider the content you have on other websites across the web in order to earn visibility, links, and hopefully foster leads.”

6

Equipment Leases

While this would not fund an entire business an equipment lease in operations like restaurants can be a good way to lower the portion of the business that needs to be financed via a traditional or SBA loan.

Often when these are a good option the franchisor has vendors for their equipment or a separate leasing option already in place.

7

Franchisor Programs

These include the Vetfran Program in which a number of franchisors offer benefits from a percentage discount on the franchise fee to waiving it all together and Minority incentive programs that offer a discount on franchsie fees with some franchisors. Inquire with the franchisor you are interested in, the International Franchise association or a franchise consultant. Some franchise companies also direct lend to all new owners for a portion of the startup costs.

8

Friends and Family

Approach this option very carefully. If you are going to borrow from someone you know or bring them in as a partner in the business make sure everyone knows their roles, who makes which decisions, who does each job and that no matter what happens you will not let the business get in the way of your relationship. All of that said, we do see family members, friends and associates working together to get

businesses off the ground.

These are some common approaches that are easy to investigate with your advisory team, for many of our candidates funding comes from a combination of sources.

There may be other alternatives that could be brought to bear depending on the concept you are considering and your financial toolbox. As always, having a qualified guide can save you a lot of time, and sometimes money, in the process.

With the right game plan you may find that your dream to open single units over a number of years can actually be consolidated into a multi-unit franchise license purchase and more rapid growth towards your goals. The borrowing process often becomes much easier after you get a couple units open and when those first units can collateralize the loans on the next units.

Is it possible that the financial plan for your franchise dreams is just a few phone calls away?

Mr. Knauf is a highly sought after trusted advisor to many companies; Public, Independent and Franchised of all sizes and in many markets. His 20 plus years of experience in both startup and mature business operations makes him uniquely qualified to advise individuals that have dreamed of going into business for themselves in order to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution.

For more information: Website: www.franchoice.com/

Franchising USA

ex per t advice

Page 41

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Franchising B2B: Page 43

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Business -to -Business Services

Franchising USA

Busi n ess-to -Busi n ess Serv ices

Featu re

When considering a franchise in the Business Service sector, you may be surprised at the vast options and the benefits that come with this industry.

In general, business service franchises are a win-win situation for the franchisee, the franchisor, and the clients that they both serve. For the franchisee the main benefits of owning a franchise are brand recognition and a proven way of doing business that not only attracts customers, but also retrains them. Having a successful, proven method for growing a franchise helps ensure the franchisor’s brand remains strong. One of the more profitable types of franchise you can choose is rendering a service. In this type of franchise, you don’t have to worry about manufacturing and marketing a product, but rather focus on the service you provide for the customers using the methods provided by the franchisor.

The relationship between a franchisee and a franchisor is a strategic partnership backed by a solid business plan and quality services. It is through this partnership that a successful franchise grows. Brand recognition combined with a proven business model can provide a lucrative, rewarding opportunity for the right person, who can supplement hard work and determination with the resources and

“Not before long, your clients will rely on you as their “trusted expert” to keep them currently updated.””

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“Business Service franchises, also commonly referred to as B2B (business-to-business), are focused on selling products and services from one company to another.” support required of successful business services franchises.

Business Service franchises, also commonly referred to as B2B (businessto-business), are focused on selling products and services from one company to another. When looking at the big picture, the transaction of a product or service could be between a manufacturer and a wholesaler, a wholesaler and a retailer, or in many cases when dealing with business services, the transaction is between an industry-expert and business owner.

Now to dig deeper; many business service franchises are indeed selling a service rather than a product. Interestingly enough, even though a product offers something tangible to show the customer during a sales pitch or presentation, there are many advantages to owning a service business over one that sells products.

Once you are invested as a franchisee, you can hone your marketing results by understanding the advantages of services over products.

Benefits of Business Service Franchising The main benefit to the franchisee and the client, in focusing on a specific servicing niche, is the increase of productivity experienced. If you discover a franchise that serves businesses in a specific area that you enjoy and have experience in, there will be no need to waste energy and resources on other needs that can be provided by another company. Therefore, you can stay on target by providing the best specialized service in that market available. This enables higher productivity not only for your company overall, but for each of your clients as well.

In attaining clients, businesses can usually provide a free sample of its service offerings at a low cost, thus giving the customer an accurate representation of

said service. For example, a bookkeeping service can show a customer how it would handle the receipts for a small project to show its qualifications and give the customer an accurate representation of the bookkeeping company’s abilities. These small perks not only impress potential clients, but also make them more inclined to choose your business over another that does not prove its credibility.

Another benefit to owning a business that offers a service versus a product, is that while a product is a tangible item that cannot always be easily altered, services are can be customized to accommodate the needs of almost any customer. For example, an IT support company can offer various levels of support based on the client’s needs and add certified technicians for operating systems and other software as needed, or an accounting service can take care of balance sheets for one business, but add payroll for another.

Unlike selling products with which you are limited by certain features, being able to add services to your offering as customers indicate a demand is key. Standing out from your competitors by being dynamic in your offering is what will set you apart, so keep an eye out for these little differences when choosing a business service franchise.

Lastly, an extra boost for service franchisees that are part of specific business servicing company is that they

are more likely to be up-to-date with new trends and technologies since they are focusing only in one particular arena. Not before long, your clients will rely on you as their “trusted expert” to keep them currently updated.

Types of Business Service Franchising When considering a Business Service Franchise you may be surprised to the options available. Common types of business service franchises on the market include areas such as Accounting, Tax Services, and Payroll. Financial service franchises, also known as cost reduction franchises, are also popular businesses that cater to individuals, small businesses, or large corporations.

Another hot spot on the market involves businesses visiting businesses to update and troubleshoot their information technology products and software. Seeing as many businesses are busy focusing on their particular product and service offerings, they often don’t have the time to ensure that their computer systems are working properly, or to troubleshoot problems as they arise.

Sales and Marketing are major areas for business service franchises, as it’s very likely for small businesses to seek out assistance from industry experts. Since a business owners’ focus is on the general operations of the company, many don’t

Franchising USA

Busi n ess-to -Busi n ess Serv ices

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Busi n ess-to -Busi n ess Serv ices

Featu re

“Since a business owners’ focus is on the general operations of the company, many don’t have time to invest in properly marketing themselves.”

How to Find a Business Service Franchise Before deciding on a specific business service franchise, first discover where your expertise and passions lie. Next, decide if you would prefer to be a franchisee that goes to visit clients on-site, or would rather have clients come to seek your services in a specific location. Also determine if you would like to coach clients in a specific area of their business or if you have a preference for providing a returning service.

have time to invest in properly marketing themselves. At the same time this important service can be the life or death or a company; it can assist in growing their customer base and thereby increases their profits. Without proper marketing, the business may go unnoticed in today’s evergrowing market.

common. This type of franchisee focuses on helping other business owners increase the value of their businesses by identifying business weaknesses, educating them on business solutions, and holding them accountable to implement appropriate strategies through periodic coaching sessions.

Many small businesses are looking for innovative ways to reach their customers, and these answers can be found in hiring a service franchise to do the work for them. Marketing providers aim to simplify the life of busy business professionals by saving them time and money with the resources that tend to their marketing needs. Working alongside business owners, these service providers help to exponentially increase effectiveness of their marketing campaigns. Franchised business services in this sector specialize in everything from store signs and direct mail campaigns, to television and radio commercials, as well as social media, website maintenance, and guerilla marketing.

Other traditional franchises that can fill recurring business needs include shipping and supply companies, commercial cleaning and janitorial services, mobile repair services, and employee staffing.

Considered as the largest sector in business services franchising in the United States, staffing services come in three types: temporary help services, professional employer organizations, and placement agencies.

Business Services in coaching is also

Franchising USA

More miscellaneous service franchises range from ATM rental services to cooking oil filtration. So, if it’s a B2B brand you’re considering, the key is to find something that interests you and that can be of service to a business. Chances are that if you can think it up, there’s a market for it.

Once you determine the type of business service franchise you prefer, research the best available matches for your criteria.

Investigate possibilities through the Internet, on sites such as Franchising USA Magazine, or the International Franchise Association. You can also enlist the services of a broker, or ask other franchisees in the industry. A crucial part to your success is performing due diligence, and asking others about their experience with a franchise is some of the most valuable information available to you- utilize these options.

Overall, your objective should be to provide the most solid streamlined service to your customers in order to assist them with their business needs, the end result should be success for all.

For more information on Business Services as featured in this issue: ASAP Accounting......................... 35 BeSprout............................................ 77 Cadence 9........................................ 58 Money Mailer....................................15 Murphy Business............................. 2 SurePayroll.........................................21

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Health &Beauty

Want to learn more about trends and growth industries in franchising?

Find out more about Health and Beauty in the March edition of Franchising USA.

Need help making the big decisions?

For interactive editorial and advertising solutions, please contact Jenn Dean, Jenn@cgbpublishing.com.

250-590-7116

Every edition we feature advice from the experts to help you on your franchising journey.

Franchising USA

f ra nchisee in action

WOW 1 DAY PA I N T I NG

Painting with Personalit y:

WOW 1 DAY PAINTING

Born and raised in Lapeer, Michigan, Craig Merrills grew up in a small rural community with a love for baseball and just about any sport.

In 1986 Merrills ventured to Washington DC to attend the University of Maryland where he studied Agricultural Economics.

Working in various restaurants while putting himself through school, he enjoyed the lively environment the food industry offered.

Upon graduating in 1991 Merrills found himself interested in stocks, commodities and trading, so decided to pursue a career as a stockbroker. Taking the General Securities Representative Exam (also referred to as the Series 7), Merrills earned his license to be a professional broker-dealer. Soon after, the opportunity to own his own restaurant arose and with his experience in the food service industry, this seemed like the right road to pursue.

In 2009, Merrills joined the DC Chapter of The Entrepreneurâ&#x20AC;&#x2122;s Organization (EO), a global business network which today consists of over 9,500 business owners in 131 chapters and 40 countries. EO enables

Franchising USA

small and large business owners to learn best practices from each other. This is where Merrills would eventually discover fellow entrepreneur, Brian Scudamore’s successful and innovative businesses.

One day while scrolling through his emails Merrills learned of Scudamore’s second business, WOW 1 DAY PAINTING. Familiar with the success of Scudamore’s international junk removal business, 1-800-GOT-JUNK?, Merrills became intrigued by the innovative painting company that promised to complete the job in just one day. Receiving a LinkedIn message from Scudamore regarding the new painting company, he then began researching franchise opportunities.

“The more I learned about the company the more I liked it and became intensely interested in what they had to offer,” Merrills says, adding, “I was looking for a reason why the company could not to be right for me, but everything I found, I loved.”

Merrills contacted the WOW 1 DAY PAINTING franchise sales team and soon after received a phone call inviting he and his wife Patricia to visit the company’s Vancouver headquarters. Here the couple would learn more about what the company had to offer.

“The more I learned about the company the more I liked it and became intensely interested in what they had to offer.”

Merrills was unsure whether the company would approve of him due to his lack of painting experience. Nonetheless WOW 1 DAY PAINTING welcomed him with open arms.

After filling out the Franchise Disclosure Document (FDD) and signing the paperwork Merrills began the weeklong training program where he learned about the company’s mission, culture, marketing, sales, estimating, operations, and service systems. “The training program was amazing. I didn’t know anything about painting when I went into it and that scared me a bit,” Merrills says. “The process was surprisingly simple and after spending the week with the Director of Field Operations, I came out of there ready to move forward with a lot of confidence.”

Once he’d learned how to run the franchise – everything from licensing to registering a business to securing the required tools and equipment - Merrills’ next step was to host his own interviews and put together his painting crew. Merrills purchased the Washington DC territory in December 2012 and by February 2013 he had

completed his first job.

For Merrills, one of the biggest benefits of being a WOW 1 DAY PAINTING franchise partner is being a part of a company that truly cares about the customer. “I know we won’t give our customers anything but excellent service,” he says, adding that the high-quality product they use and the fact that the job is done in one day are unique selling points.

“The details we take care of right down to the last gesture of dropping off flowers and a card at the end of each job are what makes the difference,” Merrills says. “It’s the details that set us apart from everyone else.”

Ensuring his painting team is always dressed in the WOW 1 DAY PAINTING uniform and that the company van is always clean are some of the most important aspects of being a WOW 1 DAY PAINTING franchise partner. “Ensuring that the brand is never compromised is crucial. The key to our success and future successes is holding ourselves accountable to the same core values company-wide,” he says.

Meeting with the entire corporate team, Merrills and Patricia quickly fell in love with the brand. “I loved the culture of the company and knew the same winning traits of 1-800-GOT-JUNK? were instilled in the WOW 1 DAY PAINTING brand,” Merrills says. “Not only is Scudamore’s team known for being good to their business partners and employees, but they keep the customer’s interests in line with the company’s.”

When he applied to purchase a franchise

Franchising USA

f ra nchisee in action

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f ra nchisee in action

WOW 1 DAY PA I N T I NG

Another benefit of being a WOW 1 DAY PAINTING franchise partner is the support provided by the franchisor.

“I could have never figured this out in a month or two on my own, but with someone coaching you and teaching you, not only how to be a painter, but also how to go out and sell the business, it’s amazing,” he says, adding that the recognizable brand name and unique company concept are also benefits of the business. “We have something no one else can offer, all we have to do is let people know what we do and what we’re about and our brand reputation takes care of the rest,” he says. WOW 1 DAY PAINTING franchise partners also benefit from incredible pricing with paint vendors

Franchising USA

because of their buying power and brand presence.

The ongoing support available to WOW 1 DAY PAINTING franchise partners is second to none. “There is nothing I can’t get an answer to within a couple of hours.

Whether I need help with an estimate or guidance on how to use the QuickBooks software, the corporate team takes the time needed help out,” Merrills says, adding that there is no problem one of the company’s experts can’t assist on. “One of the highlights of the company’s program is that since we’re constantly learning new skills the training is ongoing,” he says. A call-center team that takes all customer calls, a top-notch marketing and public relations team, and excellent business

coaches also support franchise partners.

“In every facet of the business the staff is passionate about the franchise partner’s success,” he adds.

Since joining the WOW 1 DAY PAINTING team Merrills says his life has been hectic but the utmost enjoyable.

“Any time you’re starting a new business it’s going to be time-consuming and to be successful you’re going to have to put in a lot of work. The difference with this company is that it’s not that I can’t get myself away from it, it’s that I have to remind myself to get away from it so I can spend time with my family,” he laughs.

“This past year has been full of long hours but it’s all been fun and I really enjoy every aspect of the business.”

“The details we take care of right down to the last gesture of dropping off flowers and a card at the end of each job are what makes the difference.”

For Merrills the most rewarding aspect of the job is dealing with happy customers.

“There is nothing better than going to see a customer who’s amazed at the work my team has done. When a customer sees the transformation we have made possible and loves what we have done, I never get tired of it,” he says. Another honorary achievement for Merrills was being recognized at the WOW 1 DAY PAINTING annual conference by Scudamore and the executive team for his hard work and exceptional franchise. “It’s the little things, and the fact that they took the time to recognize me and my ongoing efforts as a new franchise partner that meant a lot to me,” he says. On the other hand, the most challenging incident since purchasing his franchise has been either not having enough workers, or having too much work; an issue some would call a

good problem to have.

To those interested in joining the WOW 1 DAY PAINTING team Merrills has nothing but great things to say, but advises to not go cheap on the marketing. “If you want to perform well in your first year make sure to invest well. Sometimes it hurts taking your profits and putting them back into your business, but it’s your lifeline and at the end of the day it’s what is going to make a difference,” he says.

While WOW 1 DAY PAINTING franchise partners are required to contribute two percent to the company’s advertising campaign, Merrills says it’s all worth it and that the marketing team works hard to achieve the best results. “We have a person dedicated to all our SEO and landing pages, it really is a turn key business.”

Investing additional funds into sites such as Google, Angie’s List, and Yelp!, or

distributing door hangers and flyers to neighboring communities are all powerful ways to attack the local market, but by pushing all of these initiatives together is what has created his well rounded marketing plan.

While the future looks bright for Merrills’ WOW 1 DAY PAINTING franchise his next big step is to expand into new markets. Currently employing eight full time and four part time painters, Merrills is planning to buy more territory and add another van and crew this spring. “I believe I can run a really nice business and profit around 50,000 a year, but my goal is to run a five million dollar painting company and to get there I need to constantly be pushing the brand,” he says. Merrills plans to hire an operations manager to help him achieve his expansion goals. An operations manager will be responsible for business development, quality control, and implementing the WOW 1 DAY PAINTING values into the local market.

When Merrills isn’t busy running a top notch painting company, his two favorite activities are playing golf and water sports. With a vacation home near Smith Mountain Lake he enjoys spending time there with Patricia and their six-year-old daughter, Elena. At the end of the day being able to bring something new to an age-old industry has been extremely rewarding for Merrills. “I love having control over my fate and business. WOW 1 DAY PAINTING has had a very positive impact on my life and I’m excited for the future,” he says.

For more information: Website: www.wow1daypainters.com/ franchise/franchise.php

Franchising USA

f ra nchisee in action

Page 51

ex per t advice

Eric Schechterman, Internal Sales & Marketing Director, Benetrends

Sell Your Way,

Distinguish Your Brand Your personal characteristics, skills, and professionalism can be the most powerful tools you use when looking to separate your brand from the competition.

Franchising USA

With a wide variety of different sales tactics, books, seminars, videos, and other media being used in today’s marketplace, I find it interesting that very often people forget to focus on the most important factors of all when trying to find success in building their brand—building relationships and growing sales numbers.

Let’s face it; all of us (including myself) have been guilty of this at some point.

However, when planning to build your

future as a successful salesperson, it’s important to take a look back at the fundamentals that helped get you to where you are today, while continually seeking out new ways to incorporate those wonderful tried and true factors into your everyday efforts. Wherever you are in your sales development—B2B sales, B2C sales, retail, etc.—these are some of the basics that can really make a difference in driving your path to success.

“Make sure you are paying attention to not only what you say, but also how you say it, as your voice inflection can make a world of difference in the message you’re trying to convey.”

So whom do people buy from, anyway?

Surprise, they buy from other people!

What shouldn’t be a surprise is that more often than not people are inclined to want to like the people they do business with.

It’s crucial to your success that you make yourself easy to like and always remember that it’s your focus on the “smaller” things that will really end up making a difference in your bottom line. For instance, something as simple as making sure that your response time to questions is consistently fast and efficient can have a very positive effect on your sales. Also, make sure you are paying attention to not only what you say, but also how you say it, as your voice inflection can make a world of difference in the message you’re trying to convey. Check and double-check your emails for spelling and grammatical errors. Trust me when I tell you that your voice and your grammar usage have a much bigger impact on your likeability than you may realize. Additionally, it’s absolutely crucial to analyze your followup skills and how you might be losing sales just because your follow-up efforts aren’t as strong as they need to be. But if you think about it, in your daily life, would you be satisfied with anything less than excellent follow-up when you are the customer? If you tell someone you will be following up with him or her next Friday at 10a.m., then you should make absolutely sure to follow up with him or her next Friday at 10a.m. In other words...

BE PROFESSIONAL.

Paint a clear picture.

This does not mean you should go negative on your competition or create a negative vibe during the sales call in any way. But

you absolutely need to make sure that you are showing enough passion about your product that he or she will strongly consider the negatives if they don’t use your service. Create your story, tell it masterfully, and make it all connect. For example, what happens if the prospect makes the wrong choice? What could that mean to them? Will it end up costing them money? How about the potential for wasted time or service deficiencies?

In other words, help them see into the future. Talk about how using your services will save them time and money, will help them avoid headaches and service deficiencies, and will help them operate more efficiently.

Focus on your services and on their needs.

It’s important to quickly identify what they need. In a line of rational thought, get them to agree that any service that delivers what you have available is the one and only thing they need for their business.

Then, once you agree on that product or service expectation, show them how your product/company is the only one that can exceed their required expectations. Ideally, you should show them how your company has a service or product quality guarantee that no one else in the industry can match.

Finally, remember who is the best—YOU and YOUR COMPANY. Compare yourself and the experience you can provide with the experience your prospect has had with the competition’s sales rep. Communicate who presents as more professional and more knowledgeable. Look at who had a better presentation and better follow-up. Make

Eric Schechterman

how you do business a clear sign of how your company is an extension of you and the kind of service the prospect can expect from you. Paint a picture to the prospect that if this is the impression the competition presents when they are trying to earn your business, how are they going to perform when they already have your business?

By the end of your presentation, you should be so confident in your performance that you should be able to deliver this line: “If I’m not better or if you don’t get the feeling that I am at least a better representation of the company I work for, then don’t choose my company.”

Eric is responsible for developing and implementing the marketing and sales plan for Benetrends, the original 401k rollover funding company. As Director of Sales, Eric works hand in hand with Franchisors, Business Brokers and our clients to provide total funding solutions for the life of their business.

Prior to joining Benetrends, Eric spent eight years leading sales for Fortune 500 companies driving growth and market expansion. Eric has been a strong team leader, relationship builder, new business developer, contract negotiator and sales strategist. He is Six Sigma Green Belt Certified.

For more information: Website: www.benetrends.com/

Franchising USA

ex per t advice

Page 53

prof ile

BaseCa mp Fra nchising

Hand-me-Down gets a Pick-Me-Up

Kid to Kid and Uptown Cheapskate bring Modern Technology to the Resale Industry What makes Kid to Kid and Uptown Cheapskate stand out in the resale franchise industry may be a surprise.

These sister brands of BaseCamp Franchising are bringing the latest technologies and tools to an industry that has seen little change in the past decade. By providing a proprietary buying software and inventory management system, robust employee training and certification program, and cloud-based reporting tools, they are giving their franchisees the tools they need to manage stores more efficiently.

With over 100 Kid to Kid stores and 40 Uptown Cheapskate stores and growing, BaseCamp recognizes the importance of building consistency in pricing and customer experience across the system.

To address this need, BaseCamp created a proprietary buying software dubbed IMAP (Inventory Management and Appraisal Program). “When we started this business I had a lot to learn about fashion – especially the ever changing landscape of women’s fashion,” said Scott Sloan, Founder of Uptown Cheapskate.

“We needed a tool that would allow people from all walks of life and various fashion backgrounds to quickly learn how to accurately evaluate and price an item for sale in the store. With IMAP and its’ easyto-use touch screen interface and built-in brand and pricing structure, even a novice can function like an expert.”

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Unlike typical consignment, where you don’t get paid until your clothes sell, Kid to Kid and Uptown Cheapskate pay cash on the spot for fashionable gently used clothes, gear, shoes and accessories.

This makes for a more rewarding and streamlined experience for people that are looking to sell clothes they aren’t using.

Training each ‘buyer’ to know what items will sell and what items won’t sell is essential to a healthy franchise operation.

Before they can start buying, an employee must go through a rigorous certification program using BaseCamp Training Portal (BCTP). With hundreds of hours of buying, fashion, software, customer service, and loss prevention training built in, each employee is guaranteed to get a consistent training experience that is supplemented at the store level by handson guidance.

paving the way for store owners to manage multiple stores simultaneously.

Finally, with cloud-based reports, franchise owners can efficiently manage inventory levels, product costs and pricing.

These tools can also be accessed remotely,

For more information:

“With five stores under management, and two more in development, my time is precious,” said Shannon Unger, Uptown Cheapskate and Kid to Kid Owner in Evans, Georgia. “BCTP allows me to leverage my time so that I can focus on managing the operation at a 30,000 foot view. The great tools, combined with the dedicated franchising support staff and proven systems, have allowed me to realize the true potential of the concept.”

Basecamp Franchising offers all Kid to Kid and Uptown Cheapskate owners industry-best support from a dedicated staff based in Salt Lake City, Utah. From site selection and store set up to grand opening and growing profits, the support team is there every step of the way.

Website: www.basecampfranchising. com/USA Phone: 801-359-0071 ext. 101

Page 55

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UPSCALE

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Industry leading systems refined for over 20 years

growing franchises ½ Fast in an untapped market

For more information about owning an Uptown Cheapskate or Kid to Kid store, visit BASECAMPFRANCHISING.com/USA or call (801) 359.0071 x 101

Franchising USA

have your say

Ken Jennings, CEO & President, Mr. Rekey Locksmith

Unlocking His Secret to Success “To date, Mr. Rekey Locksmith® has changed over three million residential locks and plans to continue the company’s momentum, while also ensuring the best service to franchisees and customers.” industry he has pursued.

A 13-year-old entrepreneur orders packs of flower and garden seeds from the back of a comic book and sets out to sell them door-to-door down the path to his first business venture.

This adventure literally planted the seed that led Ken Jennings, with his entrepreneurial mindset and boundless ideas, to revolutionize systems from every

Franchising USA

Now he has turned his attention to a more standard industry, locksmithing.

Jennings started Texas Rekey Locksmith Service from the trunk of his car in 1995.

As time progressed, he single-handedly transformed the locksmith industry by applying a simple methodology to build his business – focus on niche markets within the greater locksmith industry.

Ten years after launching this small start-up, the company began to expand into areas outside of Texas and it was then rebranded as Mr. Rekey Locksmith®.

Having validated his successful model, Jennings confirmed in his mind that the saying was true: If you do what everyone else does, you’ll get what everyone else gets.

Seeking out an inventive approach, Jennings’ vision was both unassuming and brilliant: Provide reliable residential and commercial locksmith services at a straightforward all-inclusive price, and focus on rekeying rather than replacing locks, thereby saving the customer time and money. Rekeying is a system

of changing the keys for locks without having to buy new hardware. With that approach, Jennings worked hard to develop a winning formula by using innovative methods in an industry that was previously known to have a great deal of inconsistencies.

Today, Jennings is a hands-on CEO, leading a unique culture of locksmith professionals who are easily recognizable by their clean, uniformed, and branded appearance. The company delivers simple, reliable locksmith services with quick turnaround to property owners and managers in all sectors of the industry, while maintaining an almost 100 percent customer satisfaction rate.

In 2013, Mr. Rekey announced the addition of 50 franchise territories nationwide.

The franchise territories now serve more than 500 cities and towns throughout Texas, Colorado, Tennessee, Nevada, Florida, California, Arizona, Virginia, Georgia and Washington. To date, Mr. Rekey Locksmith® has changed over three million residential locks and plans to continue the company’s momentum, while also ensuring the best service to

- Is everything being reviewed from the customer’s point of view?

- Is everyone being treated like a fivestar customer?

- Did the customer say, “Wow”?

Essentially, Mr. Rekey sells peace of mind.

The professional recommendation to

tenants and new homeowners is that they should rekey their locks before moving into their new home. Homeowners are a very large part of the business. The

simple, state-of-the-art, mobile and quick franchisees and customers. The company is now considered one of the fastest growing franchises in America.

Mr. Rekey’s headquarters and operations center, located near Austin, Texas, provides full-service dispatching, invoicing, collections and scheduling services for its franchises, eliminating administrative constraints with streamlined back-office infrastructure and support. The company is an easy-tomanage mobile business, eliminating the pricing and logistical needs of a physical brick and mortar location.

Additionally, Mr. Rekey provides a growing, reputable and recognizable brand identity and multiple opportunities for market growth to its franchisees. The company provides the highest quality and most professional commercial and residential locksmith training, as well as prompt and professional service.

Currently, Jennings wears many hats, one of which is franchise owner and also franchisee to 24 Mr. Rekey territories.

Based on his extensive, real-world operations and growth, Jennings and his team are able to provide franchisees a comprehensive business platform that includes everything from back-office operations, marketing methodology, company certified training, a proven support team, and industry specific tools and equipment.

“We wanted to flip the model in the locksmithing business altogether. It should no longer just be a service, we want to offer an experience,” Jennings explains.

“Our management team guides franchisees through our plan of strategic components to drive their growth, including proven sales systems. We are not just seeking locksmiths, but rather those individuals who want a business opportunity and can see themselves in this turnkey type of industry.”

It’s apparent that much of Mr. Rekey’s success stems from the acknowledgement that Jennings believes “success comes from my commitment to the entire team’s achievement.” Tracing back to his early days of grass-roots involvement, Jennings continues to keep feet on the pavement by sending his business development managers and other franchise representatives into the community. The culture of Mr. Rekey Locksmith® was built upon a shared vision, one which the management team, franchisees, sales teams, locksmith technicians and customer call center representatives proudly stand behind. The culture is clear, customercentered and personal.

How does Mr. Rekey make locksmithing personal?

It’s about how the company does business by these guiding principles:

turnaround locksmith services strive to serve families and businesses equally.

Since the decline of the Yellow Pages®,

many businesses rely on online marketing to get the job done. Jennings knows that, although there is something to be said

for digital marketing, Mr. Rekey actually focuses effort on direct, face-to-face, offline marketing.

During the last 35 years, Jennings has founded more than 40 businesses and

spent time studying the success of other business leaders in thriving industries and applies them to his own business ventures. His other ventures include Mr. Garage Door, a multicity garage

door service company, and Mr. Property

Reports, which documents the condition of residential rental properties for landlords and properties. These are just two of the

sister companies linked directly to the core division of Mr. Rekey Locksmith®.

Ken Jennings has over 35 years of business experience and mentors numerous entrepreneurs in his hometown of Austin, Texas. He has two children who both play an active role in his organizations. He enjoys traveling with his wife Vicki and playing tennis.

For more information: Website: www.rekey.com.

Franchising USA

have your say

Page 57

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V eterans in F ranchisin g S upplement february 2 0 1 4 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the MARCH issue, please contact Jenn Dean, Business Development Manager Phone: 250-590-7116 Email: jenn@cgbpublishing.com

Contents 62 Cover Story From Military to Midas

66 A Veteran Who Believes in Giving Back Gordon Logan, Sport Clips

69 Profile: Jared Gordley A Buyerâ&#x20AC;&#x2122;s Choice Home Inspections

72 VA Provides Clarity for Self-Employment Plans

Including a Veteran Franchising Business Jim Mingey, Veteran Business Services

74

Franchise Expo South: VetFran Panel Houston TX VetFran

70 Signarama and Veterans: Build Future Together Jim Tatem, Signarama

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V e t er a ns i n Fr a nch isi ng

COVER STO RY

From Military to Midas Midas is committed to all of your auto repair needs, Midas is committed to earning customers’ trust by providing tire and automotive expertise, value, and responsiveness through quality service at competitive prices.

In business since 1954, Midas began franchising in 1956 and today has over 2,100 franchisees throughout the U.S., Canada, and internationally. Looking to expand its golden touch into new territories, Midas is currently offering incentives for new developments and business conversions.

With more than 50 years of industry leadership, Midas is known for its capability to perform common automobile services, including brakes, tires, oil changes, and suspension. Along with its 97 percent brand name recognition, Midas is also ranked number one for Miscellaneous Repair & Maintenance Services in Entrepreneur’s 2014 Franchise 500, and number 25 overall.

Proud to be a trusted, globally-recognized leader in the automotive industry, Midas is looking for motivated individuals to join its team and build long-term success. While no prior experience in the automotive, retail, or franchise industry is required, candidates must be dedicated to providing quality and value to every customer, every time.

Midas franchisees enjoy the challenge of growing their own business through daily operations, shop optimization, hiring and training employees, and representing the brand in their communities through business associations, and sponsorships, and local charity outreach. Franchisees are also responsible for engaging with customers through the Midas CRM system to promote offers and provide service reminders.

“Helping franchisees succeed even before opening shop, Midas provides the tools necessary to excel.”

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“It feels great to know we provide great service in an industry that doesn’t have the best reputation.”

Helping franchisees succeed even before opening shop, Midas provides the tools necessary to excel. Franchisees are introduced to the retail platform, brand advantages, and the skills required to become a thriving franchise when they attend the Midas training cente. Midas’ business management system assists franchisees with a variety of functions including invoicing, estimating, and inventory. Franchisees also receive support and guidance from Midas’ dedicated Training Team, Franchise Business Managers, Shop Operations Managers, Real Estate staff, and Construction/Project Managers.

Qualified candidates can enter the franchise program by developing a new shop, purchasing an existing shop, converting their existing auto business, or purchasing a company-owned Midas location. As an incentive to shop owners who wish to convert their automotive shop to a Midas store, and qualifying Veterans of the U.S. Armed forces, Midas is waiving the initial franchise fee.

The minimum capital required to purchase a Midas franchise is approximately $75,000 for an existing 6-bay shop and/ or up to $415K for a new 8-bay shop. The total estimated investment varies with the type of opportunity, geographical location, and site characteristics.

A veteran of the military and Midas franchise owner, Diana Hoffman has been

a part of the Midas team for 32 years and proudly claims she has enjoyed every minute of it.

Born and raised in Michigan, Hoffman grew up in a family of seven children.

Her father, a mechanically-minded man, owned a snow mobile dealership where she worked throughout high school. Upon graduating, Hoffman spent three years in the military where she was enlisted in the automotive department and earned credits towards a degree in Accounting. Set on owning her own business after being discharged, Hoffman researched various opportunities; this is when she discovered Midas.

“I chose Midas because of its reputation, longevity of being a franchise, and support system,” she said, then added, “I like the support and education that came with owning a franchise versus an independent business.”

In 1982 Hoffman gained employment at the Killeen, Texas Midas shop as a bookkeeper for seven stores. After two years in this position she switched roles to be a service writer, and a year later was promoted to store manager of the Killeen location where she remained for seven years.

The following three years Hoffman spent working for Salem Consulting Group as Director of Operations. Travelling throughout the U.S., Hoffman and her

team were responsible for consulting Midas franchises on employee procedures, record keeping, marketing, customer service, and overall operations. During this time she created and implemented guidelines for phone technique, parts and labor margins, sales follow up, and management, technician, and customer satisfaction procedures. Consulting over 70 Midas shops during her employment with Salem, Hoffman also personally trained the Midas International trainer for Australia, as well as Midas International personnel.

In 1995 Hoffman returned to Texas to purchase Midas’ Killeen location.

Undergoing franchise training, Hoffman achieved the highest score in history on the final exam and was awarded the Midas Triple Crown from Midas International.

“By the time I went to training I had worked with Midas for nearly 10 years, and while I knew a lot about the business and how to run a shop, I didn’t have the franchise knowledge,” she explained. “The training covered everything from shop operations and products, to accounting

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COVER STO RY

“Midas is a great fit for veterans because of its exceptional support. ‘Similar to the military Midas offers an amazing diversity of knowledge to pull from.” principles and how to read a P&L statement and other necessary financial reports. The training was really helpful, and a lot of fun, too.” In 1996 Hoffman was deemed Midas Rookie of the year in both the Western Region and North America.

Purchasing Midas’ Temple, Texas location in 1998, during her ten years as owner sales increased from an average of $280,000 per year to a high of $748,000.

In 2000 Hoffman purchased land in Georgetown and built an eight-bay location. This location has received several awards from Midas International for customer retention and loyalty and has an excellent rating with the BBB. Selling the Killeen and Temple locations in 2009, Hoffman is now solely devoted to her Georgetown store. “Having over thirty years of experience with Midas and working in several positions, I understand what it takes to be successful in this business,” she said. “For over fifteen years I was managing three locations and averaging 22 employees. Now I’m a single store operator of a staff that has

ninety-five years combined automotive repair experience. I’m sure our combined experience, dedication to customer satisfaction, and desire to excel has contributed to our ongoing success,” she said.

questions that may arise. Pleased to build

Describing Midas as “the perfect fit,” Hoffman loves the family-feel of the franchise and resources available from the dealers association, a system that connects franchisees to dealers who can answer any

Hoffman believes Midas is a great fit

relationships with customers, “It feels

great to know we provide great service

in an industry that doesn’t have the best

reputation,” she said. “It’s good to know we’re an honest place to go.”

for veterans because of its exceptional

support. “Similar to the military Midas

offers an amazing diversity of knowledge to pull from,” she explained. Describing

the shift from military to Midas as a “good lateral move,” Hoffman said that while

the military offers support to do the job,

franchising provides a governing body to guide rather than dictate.

Essential to running a Midas franchise is

that it’s done so with honesty and integrity.

“Midas dealers provide a great reputation around the country, and it’s an amazing

feeling to be a part of that,” Hoffman said, concluding, “Midas has provided me with a great life, I’ve spent a very happy 32 years with the Company.”

For more information: Website: www.midasfranchise.com

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Technology + Expertise

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AZ Franchising the first Italian multichannel system supporting international enterprises to grow with franchising

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V e t er a ns i n Fr a nch isi ng

Gordon Logan, Founder & CEO, Sport Clips

A Veteran

Who Believes in Giving Back Sport Clips Haircuts has a mission as a company to provide active-duty military, veterans and their families support while they serve and beyond.

As a veteran of the U.S. Air Force, I have a personal desire to give back to those who serve our country and work to do so by supporting veterans’ causes through Sport Clips by serving on the VFW Foundation Board, as a member of the International Franchise Association’s VetFran Committee, and as Chairman of the VetFran Mentor Program.

To help veterans in their post-military career goals, we established the “Sport Clips Help A Hero Scholarship” program and accomplished the first step of that mission in January when we announced 43 scholarships we’ve funded for military veterans for the 2014 spring semester.

Sport Clips franchised and company store locations across the nation raised over $500,000 in 2013 through our annual “Help A Hero” campaign, to fund phone calls home for service members overseas and in hospitals, and for the Veterans of

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“I have a personal desire to give back to those who serve our country and work to do so by supporting veterans’ causes.”

Foreign Wars-administered scholarships.

Operation Uplink™ “Free Call Days,”

contribution, Sport Clips and the VFW

possible for deployed and hospitalized U.S.

Through this half-million dollar

expect to provide more than 60 additional scholarships for the fall 2014 semester for which service members can now apply

through April 30 at VFW.org/scholarship.

Since 2007, the Sport Clips’ Help A Hero campaign has supported the VFW’s

making more than two million calls home service members. This past year was our

first to expand the Help A Hero campaign to offer scholarships of up to $5,000 to

active-duty military and veterans who are pursuing an education at post-secondary institutions, including trade schools.

Donations to Help A Hero were collected in stores and at local fundraising events in the fall of 2013 with efforts culminating November 11, Veterans Day, on Sport Clips’ “Biggest Haircut Day of the Year.”

Stores donated a dollar from every haircut service to the scholarship program, and sponsors John Paul Mitchell Systems and Nioxin each contributed $10,000 to the effort.

Reading just one of our Help A Hero scholarship recipients’ thank you notes is all it takes to recognize the need for this type of support, and we were proud to have Seth Atchison, who served in the Navy, with us when we made our recent donation announcement. Seth is one of the Sport Clips Help A Hero Scholarship recipients

and is using it to pursue his M.D. degree at the University of Kansas Medical Center.

Sport Clips continues to be a proud supporter of phone calls home through the VFW’s Operation Uplink, but we’re excited to be able to expand our focus to include scholarships, which will support our nation’s heroes and their families in the next chapter of their lives.

Sport Clips serves as the Official Haircutter of the VFW, and our Help A Hero campaign is just one of the many ways we support active-duty military and veterans. As a company we brought on board a Veterans Affairs Officer, Matt Deputy, USAFR, who spent eight years on active duty and continues to serve as a reservist. In his position, Deputy plays

an integral role in supporting Sport Clips’ military-focused partnerships, such as those with the VFW, Wounded Warriors Family Support, Honor Flights for WWII veterans. Matt also serves as a liaison to veterans who are interested in Sport Clips as a franchise opportunity.

Sport Clips sponsored Wounded Warriors Family Support and its show car that traveled throughout the U.S. in 2013 fundraising for two specially equipped “smart homes” for wounded veterans and their families. Sport Clips also sponsored Ageless Aviation Dreams Foundation’s “Texas Tour,” which provided WWII veterans, many of whom live in long-term care facilities, with a flight of a lifetime in a WWII era Stearman bi-plane some of

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V e t er a ns i n Fr a nch isi ng

Gordon Logan, Founder & CEO, Sport Clips

these veterans flew in their younger years.

We have also supported the USO at Ft. Hood, The Patriot Foundation (assisting families of fallen Special Forces soldiers) and The Aleethia Foundation (dinners for Wounded Warriors and their families while undergoing rehab).

Our team has been an Honor Flight Austin sponsor, which has enabled many WWII Veterans to visit Washington DC to see the monuments in their honor. We also sponsor Heroes Night Out, VFW Post 8587 and American Legion Post 174. In addition, in 2012, my family and I made a major commitment of one million dollars over 10 years to support Central Texas non-profits, specifically to support work with veterans and children.

Along with Sport Clips’ military-friendly outreach, we also take care of our own

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“Sport Clips franchised and company store locations across the nation raised over $500,000 in 2013 through our annual “Help A Hero” campaign.” through the Wayne McGlone Memorial Relief Fund. Wayne, an Air Force veteran, was a much loved Sport Clips Area Developer who passed away unexpectedly in 2012. We established a fund in his memory to support Sport Clips team members in need of financial assistance due to unforeseen emergencies and tragedies. Some of our first recipients were stylists who, along with their families, lost their homes to the Moore, Oklahoma tornado last year.

I flew C-130’s on active duty for several years in the and early 70s and flew in the reserves a couple of years after that. Many people didn’t appreciate the sacrifices made by our troops back then…when they

came home, they weren’t really treated all that well in many cases. So, as founder and CEO of the largest provider of men’s and boys’ hair care, it’s important to me and to our company culture to give back to our military and our veterans as a way of saying “thank you” to them for the sacrifices they’ve made on our behalf.

Founder and CEO Gordon Logan is a pioneer of the unique sports-themed haircutting franchise, including the development of the Sport Clips AllStar haircutting systems, operating procedures, and marketing programs.

For more information: Website: www.SportClips.com.

Jared Gordley

Profile

“The military awarded me a great deal of organizational strength and instilled in me an ability to communicate effectively, which helps me now when meeting with prospective clients.” growing franchises, a home inspection business with nearly 200 franchisees across Canada and the U.S.

Former active duty Air Force Staff Sgt. Jared Gordley, 26, spent eight years serving his country, deploying twice — once in Iraq and another deployment at a classified location.

Gordley started in the Air Force as a power generation technician in 2007, and continued to be responsible for various electrical systems, primarily generators, throughout his military career. Just recently, he found his small business calling.

Gordley currently owns A Buyer’s Choice Home Inspections franchise in his Jacksonville hometown. He has teamed up with one of North America’s fastest

A Buyer’s Choice Home Inspections is a

certified Military Friendly Franchise and a great place for veterans, according to

After years of service, Gordley began considering which career path was meant for him.

Gordley, because a lot of the skills learned

“It was my wife who pointed out that most of my military time was spent using the same skills involved in home inspections,” Gordley said. “I always wanted to own my own business, so I started researching and doing my due diligence.”

military men and women are always

Gordley attributes his military experiences as foundations for guiding him toward business ownership and home inspections.

During his first deployment, he worked in a unit called RED HORSE, an engineering unit in which he was able to do electrical work along with HVAC (heating, ventilation and air conditioning) maintenance and plumbing too.

“Fortunately, I learned a lot during my service that has helped me as a home inspector,” Gordley adds. “Aside from all the practical hands-on experience, my role as a supervisor in the military provided me with leadership skills. The military awarded me a great deal of organizational strength and instilled in me an ability to communicate effectively, which helps me now when meeting with prospective clients.”

in the military are used during inspections.

“For basic protocol or safety reasons, inspecting something,” Gordley said. “You

need an eye for the minute details, whether it is your bunk, gear or a vehicle.”

Gordley added that A Buyer’s Choice

offered him information, training and resources he “simply could not have

duplicated” on his own. “It’s a franchise, so there’s a proven method and support when you need it.”

The franchise offers a great military

discount, but that wasn’t the deciding

factor, Gordley said. He based his decision on the support A Buyer’s Choice offers,

what he found to be second to none in the home inspection industry.

In addition to growing his Jacksonville

home inspection company, Gordley is still

actively involved in Florida’s Air National Guard.

For more information: Website: www.ABuyersChoice.com Phone:(877) 377-8626 Email: bill@abuyerschoice.com.

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Jim Tatem, President of Signarama, Inc.

Signarama and Veterans

Build Future Together Any franchisor will tell you that passion, discipline, leadership, and commitment to hard work are characteristics that define their strongest franchisees. They are also qualities found in those who have served in the military.

That is why Signarama, the world’s largest full-service sign company, is so committed to providing opportunity and support for military veterans interested in owning their own Signarama franchise.

“We try to target veterans as potential franchisee candidates,” says “JT” Jim Tatem, President of Signarama. “Veterans have already demonstrated the ability to follow a system and defined structure.

They are used to working hard on a specific task or mission, and they come home with strong leadership skills and an exceptional sense of working as a team.

These are all attributes that make for a successful franchise owner.”

Tatem says Signarama has the utmost respect for veterans, valuing the dedication and service they have provided to their country. They know the sacrifices they’ve made and know that moving on from a military career is more complicated than simply putting on civilian clothes and finding a job.

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“We know that the same person who served their country will also work hard to serve their community and help local businesses to grow.”

“It’s not just a matter of providing purchasing incentives,” he says. “We also provide extensive training and ongoing support. We know that the same person who served their country will also work hard to serve their community and help local businesses to grow. In return, we are dedicated to providing them with any and all support and training they need to help them succeed.”

“We have attended Recruit Military career fairs as a means to connect with transitioning veterans,” he continues, “and we worked closely with the International Franchise Association during their VetFran initiative by hosting a press conference in Washington D.C. last year.

Through our website we also offer a custom discount program to help veterans open a new Signarama.”

Tatem emphasizes that franchisees need not know anything about signs to become a Signarama franchise owner.

Signarama provides an extensive training program to new franchisees at their world headquarters in West Palm Beach, and then provides ongoing in-store support as locations open. There is also a structured mentor program to help owners in their first year of business.

Signarama’s VetFran program is structured to offer different discounts off their franchise fee based on the number of years veterans have spent in military service.

Veterans who have served for less than 11 years receive a 10 percent discount, those who have served for 11-20 years receive a 24 percent discount and veterans who have served for 20 or more years receive a 50 percent discount.

“Veterans are particularly able to take what they learn in training and apply it successfully in the moment,” he says.

“They also benefit greatly from the franchise ‘family’ they gain when they become a Signarama owner. Those who have served our country with heroism and honor are exactly the kind of people who make excellent franchisees.”

“As tens of thousands of service men and women return from deployment in Afghanistan and Southwest Asia, we need more opportunities to ensure that veterans and their families can transition into the civilian economy,” Tatem explains. “This has been especially important during the economic recovery, in which franchise ownership can provide a more stable career than the average job market. We want veterans to have access to a business opportunity they can maintain for the rest of their lives.”

Military Times has ranked Signarama, the world’s largest full-service sign company with nearly 900 locations in more than 50 countries, as one of the best franchises for vets. Tatem is particularly proud of this distinction and the veterans who are part of his company.

“As of May 2013, we had 56 franchise owners who are veterans,” he says proudly.

“But we don’t just have veteran owners; there are former military members represented at all levels of Signarama, from our executive team all the way down to the newest franchisees who have just entered the system.”

As part of the $30 billion-plus worldwide sign market, Signarama has been at the forefront of the sign industry for more than 20 years, providing cost-effective advertising and branding solutions for companies of all sizes. The franchise giant is a part of the United Franchise Group, a global leader consisting of award-winning business-to-business brands and franchise development services.

Signarama has been ranked 53rd on

Jim Tatem

Franchise Direct’s Top 100 Global Franchises. This is the company’s third consecutive year on the list, which is a definitive and exclusive detailing of franchises that are performing best internationally.

Tatem hopes the number of veterans he can also call Signarama owners continues to grow each year.

“We believe our service men and women have already demonstrated passion, dedication and a depth of knowledge that brings real value to our system. That’s why we embrace the former soldiers, marines and sailors who have been part of our armed forces. We know they will be a great part of the Signarama team as well.”

Signarama expects to open 100 more locations nationwide through the end of 2014 and have more than 1,200 locations worldwide by the end of 2016.

“JT” Jim Tatum is the President of Signarama, Inc. and one of its first employees. In 1986 he ran the pilot Signarama store and was instrumental in creating and running Signarama’s franchisee training programs. He served as Director of Training and Support for 19 years before rising to the position of President.

For more information: Website: www.signarama.com

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V e t er a ns i n Fr a nch isi ng

Jim Mingey, Founder & Managing Director, VBS’

VA Provides Clarity for Self-Employment Plans Including A Veteran Franchise Business Jim Mingey

Late in 2013 the Veterans Administration (VA) issued revised procedures to clearly define when it is appropriate to authorize a self-employment plan, and what services should be included in the plan. Franchisees may be approved if they are endorsed as part of a viability analysis of a proposed selfemployment business plan for a Service Disabled Veteran (SDV).

Before an SDV begins the new process he/she must determine whether they meet eligibility requirements. The biggest

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question is, “Are you within the time limit for receiving this benefit?” This is generally 12 years from the date the VA notified you that you had at least a 10 percent service-connected disability.

You can apply online by filling out the application; it only takes about 15 minutes.

If you qualify, be sure to tell your assigned counselor that you are interested in exploring the Vocational Rehabilitation and Employment (VR&E) Track 3 for “Self-Employment.” Some subsistence living expenses may be available during the self-employment business plan development period.

Veteran Business Services (VBS) has devised a Franchise Accelerator which was approved by VR&E and is featured on the VA’s Portal for Veteran Franchise Opportunities. There are also other resources listed on the Portal to help explore the franchise industry.

After you’re approved, the new VR&E policy and procedures will be applied.

This includes attending an initial selfemployment orientation, a preliminary

self-employment evaluation, and then finally VR&E Category assignment, which affects the level of benefit you can receive.

New Fast Track planning should greatly improve the process. What this can mean is that a Veteran who is deemed qualified for VR&E can explore potential resources available through VR&E for a franchise before developing complex business and financing plans necessary for his/her eventual business launch.

However, the Fast Track plan for an SDV considering self-employment will include a future objective on the development and submission of a viable business plan. This objective would also require completion of an introductory course that helps determine if franchise self-employment is appropriate. A recent collaboration between the USO and Georgetown University would most likely satisfy the requirement for a franchise selfemployment plan. Click on the USO logo below for more information:

The new VR&E procedures were developed to assist a Vocational Rehabilitation Counselors (VRC) to determine if self-employment is truly feasible and what services are needed for the Veteran to be successful in starting his/her own business. In addition, the VRC must determine if the SDV qualifies for a Category I or Category II designation under the Program. Both Categories offer comprehensive training in the vocational goal and at least incidental training in the management of a small business. However, Category I offers more comprehensive training benefits and minimum stocks of materials such as an inventory or salable merchandise and even essential equipment, including machinery, occupational fixtures, accessories and appliances. If a

“A Veteran who is deemed qualified for VR&E can explore potential resources available through VR&E for a franchise before developing complex business and financing plans necessary for his/ her eventual business launch.”

VRC determines that the training and/ or other rehabilitation services were reasonably needed to achieve the goals of the rehabilitation plan, then those costs can be subsidized up to $25,000 under Category II and as much as $100,000 or more under Category I. Before all the Service Disabled Veterans get too excited about these possibilities they must recognize that the VRE process, although improving, can be much more time consuming and complex than conventional resources. One reason for this is that VRE must examine more than typical financing and market factors to determine feasibility. Another reason is that provision of services is based on category assignment and that VR&E must not be considered the sole source in establishing a business. In addition, before any final decision, it is imperative that the VRC have a clear understanding of the Veterans’ motivation, functional ability and interest, as self-employment is one of the most demanding tracks to employment.

On the other hand the effort may be especially worthwhile to the SDV as any monies provided under the Program could be counted as equity when seeking conventional debt financing. If a franchise candidate can show that some of his/her equipment costs are already covered, the likelihood of feasibility increases. Many franchisors seek Veterans due to their discipline and commitment characteristics but can’t close the deal due to a shortage of equity contribution by the Veteran.

Operating a franchise could be much more challenging than simply obtaining and maintaining employment in a traditional setting. Accordingly, it is the responsibility of the VRC to assist the Veteran to make an informed decision regarding self-

employment as an appropriate career track. Typical demands and challenges associated with pursuing self employment include developing a viable business plan.

Obtaining funding, etc. Just as importantly is the VRC’s responsibility to help guide the Veteran to balance the personal disability challenges particular to their individual circumstances. Nevertheless, all VRCs are committed to work closely with a SDV to foster an open line of communication to access internal VA resources which would help make any business successful.

VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment (VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for veterans in franchising.

For more information: Email: jmingey@ VeteransBusinessServices.us Phone: 202.349.0860

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V e t er a ns i n Fr a nch isi ng

VetFran

Franchise EXPO South VetFran Panel Houston TX All Veterans and military spouses are invited to attend the FREE VetFran Panel at Franchise EXPO South in Houston TX February 8, 2014.

Location: Reliant Center, Room 305 Houston TX Date: Saturday February 8, 2014

The panel will be one hour with four panelists. There will be two Veteran franchisees, one financial expert, and one franchisor on the panel. We urge our panelists to put

themselves in the audience’s shoes and remember what it was like to be in the learning

stage. Some of the topics that will be discussed are: How did VetFran help them? Why did they select the franchise business they did? What would they like to have known

before they started their business? How did their military background prepare them to be a franchisee? What barriers did they have, and how did they overcome them?

Time: 10:00 AM – 11 AM

Moderator: Joe Lindenmayer, Marine Veteran, VetFran Chairman and President/COO,

Click Here and Enter FREE PROMO Code: VETGP

Panelists:

TSS Photography

Corey Bullock, Franchisee and Navy veteran, Kiddie Academy Anthony Waller, Franchisee and Army veteran, Liberty Tax Service Dallas Kerley , Chief Development Officer, Benetrends, Inc Scott Mellon , Vice President of Sales, Papa Murphy’s International

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'3&& 4&0 "OBMZTJT BOE 2VPUF $BMM /PX 901-672-7243

www.highervisibility.com

info@highervisibility.com

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prof ile

B eSprou t Technolog y

Making The Most Out Of Your Mobile Strategy “We make technology simple for your stores to use!” always with the users, many Brands and businesses rushed to connect with their customers by building their own branded App. Some were successful; many were not.

James Woo

As a business owner, you have the unduly task of wearing multiple hats. At any part-ofthe-day, you can be tasked with managing operations, overseeing the supply chain, managing personnel and even directing marketing efforts. With rapid advancements in technology, you’ll probably need to include a beanie cap.

In 2013, we saw three major milestones: shipment of smartphones exceeded PCs; iTunes recorded its one millionth App; 74 percent of all cell phones were smartphones, up from 58 percent over the prior year. Since smartphones are

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How can you tell if your’s was one of the successful ones? One good source is to check your App’s reviews on iTunes and Google Play. Ratings range from one to five, with five being outstanding and one being awful. While a score of three is average and deemed acceptable, the reality is it is NOT. Why? If you score a three, you have potentially as many happy customers as you do unhappy ones.

Dissatisfied customers will not just delete your App, they sometimes penalize you by going to your competitors instead. Make sure you shoot for ratings of fours and fives.

How do you accomplish this feat? Here are a few suggestions: 1) Make sure your system is bullet proof.

A top complaint is that the system does not work properly. With technology, there’s not much gray area. It’s either built correctly, or it’s not.

2) Customers took the time to download your app. Make sure you give them useful features.

3) Offer value to your customers.

4) Make your customers feel appreciated.

At BeSprout Technology, we strive for the above. An example is our partnership with sweetFrog, a leading operator in the frozen yogurt industry with over 330 stores nationwide. For sweetFrog,

we licensed our MASCAR (Multistore App for Coupon and Rewards) system. Designed for Brands with one or thousands of stores, MASCAR is robust in features, expandable, extremely easy for the consumer to use, and for the stores to implement. For sweetFrog, we worked closely with their marketing team to customize it so that it is consistent with their goals of driving sales, increasing brand awareness, and strengthening customer loyalty.

To help achieve those goals, a custom branded game was added that rewards users with coins, which can be converted for prizes and discounts at sweetFrog.

The prizes build brand loyalty while the discounts drive traffic to sweetFrog.

With the built-in tracking mechanisms, sweetFrog can calculate ROI, store activity, and user engagement. More importantly, customers are rewarded, feel appreciated, and realize sweetFrog’s effort to enhance their experience. They enjoy it so much that the sweetFrog App has a rating (iTunes and Google Play) of four and a half stars. To offer some perspective, its five major competitors have a rating between two and three point three stars.

Coupled this fact with sweetFrog having 50 percent more reviews than those same five competitors have combined, clearly demonstrate the successful integration of a mobile strategy.

Please contact us to discuss how we can help your business grow!

Email: sales@mascarx.com Phone: 804-273-1279 Website: www.mascarx.com

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Rewards and Coupons

Loyalty Program

Rewards and Coupons Food Ordering

Ulimiited Messaging

...and more

Features you need to take your business to the next level.

Rewards and Coupons

ATTRACT NEW CUSTOMERS INCREASE SALES PROMOTE YOUR BRAND EASY TO USE, EASY TO SET-UP

Call Us Now at (804) 273-1279 and Receive a Promotional Discount!

Mention Code: ADFM

www.mascarx.com Inquiries contact us at: sales@mascarx.com

BeSprout Technology 4701 Cox Road, Suite 275 Glen Allen, VA 23060 p: 804.273.1279 Franchising USA

ex per t advice

Jeff Grandfield & Dale Willerton, The Lease Coach

Franchisee Tenants – Deal While landlords often ask for security deposits and/ or personal guarantees on commercial leases, neither is mandatory or legally required.

As a franchisee tenant, you should know that these can be negotiated.

Unfortunately, many franchisee tenants don’t realize this and pay the landlord quite willingly – without negotiating the amount or the terms. The Lease Coach has been repeatedly successful in negotiating a reduced deposit for our tenant clients – and even no deposit at all! Deposit money, which generally doesn’t earn you a penny in interest, could better serve as working capital for your own business rather than as security for your landlord.

To begin, let us define and differentiate between the two terms. A security deposit is just that – financial security for the landlord in the event that the franchisee tenant doesn’t pay the rent or damages the property in some manner. The personal guarantee is the provision in a lease naming a guarantor who is held personally responsible for the payment of all the amounts for rent and additional rent as set out in the lease.

From your standpoint as a franchisee tenant, there is no advantage at all to putting down a security deposit or agreeing to a personal guarantee. By doing so, you tie up your money, money which the landlord may try hard not to give back to you if you don’t renew your lease.

Conversely, a security deposit makes perfect sense to a commercial landlord as

Franchising USA

“Remember, most landlords will prefer that you pay a large deposit as soon as possible, and that you get as little of it back as late as possible.” it gives him a chance to recoup some of the money he spends to attract and bring in a new tenant. Doing this can prove to be very expensive for a landlord!

Reasons why the landlord (really) wants a lease deposit: • Cash flow. The commercial space may have sat vacant for some time, bringing in no income for the landlord.

• The landlord might have to offer monetary inducements (e.g. tenant allowance / free rent) to rent his space.

• The landlord might need to renovate the space to get it rented.

• The landlord has to pay real estate commission fees, in most cases. Fees for

agents/brokers securing you as a tenant can cost the landlord a pretty penny –

typically five percent of your base rent.

Before you agree to pay a deposit, know what you are getting into. Ask plenty of questions including:

“How much is the deposit?”

“Where will the deposit be applied?”

“Is the deposit fully refundable?”

“When will the deposit be returned to the tenant?”

“When would the deposit not be returned?”

ling with Lease Deposits Remember, most landlords will prefer that you pay a large deposit as soon as possible, and that you get as little of it back as late as possible. The Lease Coach negotiates for the best deposit terms possible so that you can keep more of your money.

When to Pay the Deposit?

Franchisee tenants can also benefit by knowing when to give a landlord a deposit.

Instead of inadvertently writing a check and submitting it with your signed offer to lease, make your deposit due and payable three days after the landlord has executed the offer to lease back. Better yet, make your deposit due and payable three days after removal of conditions by both you and the landlord. Once the landlord is holding your deposit, he might well dig in his heels and lose any further motivation for negotiating with you or giving you concessions. If the deal falls apart and the landlord drags his feet with returning your deposit, not having that money may make it more difficult to move on and deal on another property.

Not paying any deposit, whatsoever, is obviously the most advantageous for franchisee tenants. The Lease Coach is frequently successful negotiates for a lower deposit or none at all as we can often demonstrate that you are not a business risk, use any improvements as leverage, use the fact there is no agent/broker involved (and thereby no landlord-paid commission is being dolled out) to your benefit and/or explain that the deposit depletes start-up capital needed to achieve business goals.

For existing franchisee tenants looking to renew and still having their deposit held by the landlord, we insist on a refund of that deposit. Even if you were a security

â&#x20AC;&#x153;Deposit money, which generally doesnâ&#x20AC;&#x2122;t earn you a penny in interest, could better serve as working capital for your own business rather than as security for your landlord.â&#x20AC;? risk for the first portion of your lease term, if you paid your rent regularly for all of

those years, you are certainly no risk to the landlord for the renewal term.

Dale Willerton and Jeff Grandfield The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals For Dummies (Wiley, 2013).

For more information: Website: www.TheLeaseCoach.com Phone:1-800-738-9202 Email: DaleWillerton@TheLeaseCoach.com

Franchising USA

ex per t advice

Page 79

f ra nchisee in action

Wok B ox

Winning Wit With vast experience in various cultures and industries, today Alnoor Samji is thrilled with his Wok Box franchise and the winning concept the quick service restaurant presents.

Born and raised in Tanzania, East Africa, Samji was exposed to the business world at an early age. His father was a successful exporter of all Southern Region agricultural products including cashews in the late fifties and early sixties. In 1965 his parents and four siblings moved to Pakistan. While his parents continued to build their business, the Indo-Pakistan War of 1971 resulted in them losing their assets and moving again, this time to London, England. In London, Samji attended the Harrow College of Technology & Arts where he earned a diploma in Business Studies. Next attending Middlesex Polytechnic, Samji took his Foundation Exams before undergoing CA training and becoming a practicing accountant. In 1980 Samji married Samina, and in 1981 they immigrated to Canada.

Settling in Calgary, Alberta, Samji found work as an accountant in public practice. He was than offered a position as

“The product is geared for all ages. I have customers from six years old to 70, and all of them love the food. It’s great to serve such a diverse market.”

Franchising USA

th Wok Box Chief Accountant in a Hotel. His career developed in the hospitality industry and he managed small to medium size hotels as a controller including the Medicine Hat Lodge and the Marlborough Inn. He than joined a Property Management Company, again as a Controller and managed a portfolio ranging from $50 million to $250 Million dollars. This is when Samji got his first taste of the restaurant industry.

Over these years, Samina gave birth to two daughters and a son, and after playing the homemaker role for ten years, she became restless and wanted to rejoin the working world. Samji purchased a cappuccino bar “Jungle Java” for her to operate during the day. Samji continued his career as a Corporate Controller during the day and operated the cappuccino bar in the evening and weekends. This made for a 14-hour day, seven days a week. Samji continued this routine for four years before selling the café. Over the next decade, Samji owned and sold several restaurants, including a franchise family diner and a Tex Mex restaurant –Santa Fe Grill. Samji left his accounting career in 2003 when his father fell ill, as he needed a flexible schedule to care for him.

With a desire to be his own boss, Samji then bought his fourth restaurant, this one a full-service franchise called Humpty’s Family Restaurant. Samina is capable of running this location on her own.

Samji set out to find a project for himself.

Researching various franchise concepts, Samji’s children, huge fans of Wok Box, suggested he look into this new and upcoming concept.

Investigating Wok Box’s franchise opportunities, Samji was impressed with the concept and fusion menu items.

After filling out an application, he met

with Lawrence Eade, CEO of Wok Box, and was approved to own a franchise.

During his due diligence, Samji visited several franchise owners, asking questions about their experience with the company.

Receiving nothing but positive feedback, Samji was sold on the brand. By luck of the draw, Samji met the owner of the Calgary store, a woman in the midst of lifting her ownership from the location.

A deal was made between them and in January 2012 Samji bought and took over the Calgary Wok Box restaurant located at 130th Avenue SE. Samji believes Wok Box is the perfect fit for him. “I love the concept of fresh Asian food in a semi-full service restaurant,” he explains, adding that although his customers have the choice to dine-in or take-out, there are no overheads of employing servers. “I can provide customers with everything they need to enjoy their meal in my restaurant, or please them with a lovely take away box,” he says. Dishing out made-to-order stirfries, including noodle and rice dishes that combine high quality ingredients and flavors from Asia including China, Malaysia, Vietnam, Thailand, India and Korea. The variety of menu items from various Asian countries makes it easy for Samji to please many different taste buds. “The product is geared for all ages.

I have customers from six years old to 70, and all of them love the food. It’s great to serve such a diverse market,” he adds. In addition to a unique menu, Wok Box also offers wheat-free and vegan options. All dishes are cooked in front of the customers in an open concept kitchen and the entire process is high energy.

Once approved, Samji and his wife flew to Vancouver to undergo Wok Box’s

comprehensive training program. “I wanted my wife to be familiar with the restaurant’s operations, in case I ever needed her to take over for me,” he explains. Wok Box training is typically a two-week process consisting of 10 days at corporate office followed by four days in a corporate store. With the tight deadline of taking over the Calgary location, Samji’s training was a bit out of the norm.

The Wok Box Head Office made a condensed program of four intense days of training for the Samji’s at their headquarters in Surrey BC. Samji quickly learnt the company’s operations.

Studying the menu and familiarizing himself with Wok Box’s specialty sauces and ingredients for various allergies and dietary requirements, Samji tested him memory, cooking skills, and plating ability by creating every menu item in head office’s test kitchen. Heading back to Calgary, Samji then worked alongside the current manager of his Wok Box location for four days before taking over.

During this time Samji practiced all store operations from taking orders, expediting and cooking.

Key to his success is the location of his Wok Box restaurant. It is located at 130th Avenue SE, which is the power center of SE Calgary. Equipped with big box stores and national brands, “All the major retail tenants are located within three blocks of my Wok Box, so I am in a great market,” he explains.

Franchising USA

f ra nchisee in action

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f ra nchisee in action

Wok B ox

Samji describes Wok Box’s ongoing training and support as exceptional. “Once you own the restaurant and understand its concept, the only other training that is required is when the menu changes.

Any time a new item or special is added to the menu, franchisees receive all the memos and prints outs on how it is to be done. Online videos are also available, showing franchisees every step of the cooking process, procedures, presentation, and garnish for both in the box and on a plate. When a new item is added to the menu, franchisees receive in advance, the ingredients from head office so that there is time to practice before launching. It’s important that all items taste good and look right,” he says. “If franchisees are confused about anything, they can contact their Regional Director. Wok Box Head office is very hands on and can answer your questions either over the phone, or will visit your restaurant to assist, where needed,” he explains. The accessibility and openness of all corporate personnel is another asset of the Wok Box Franchise, “The whole team is very forward thinking,” he adds.

For Samji, the most rewarding aspect of owning a Wok Box franchise is satisfied customers. “I have owned several other businesses and working with the Wok Box concept and team has been the best experience so far,” he says. “The most satisfying compliment an owner can receive is when you ask your customers ‘how everything was,’ and the answer is ‘it’s always a good here.’” Samji says the consistent positive feedback is his biggest achievement.

While Alberta is a booming province, the general lack of staff in the food industry has been an issue for Samji. “I work hands on and a lot of long hours, but I wouldn’t want it any other way. I enjoy it,” he says. “My kids are grown up and I don’t have many hobbies, so if I didn’t work, I would probably vegetate in front of the television,” he laughs, adding that the long hours keep him healthy and active. “If an opportunity arises, I would own more than one Wok Box,” Samji says, convinced that although a fairly young franchise, it is a forward thinking and successful franchise.

Franchising USA

“I have owned several other businesses and working with the Wok Box concept and team has been the best experience so far.”

To those interested in purchasing a Wok Box location, Samji’s advice is to do your homework, fill out an application, and if you’re approved, look at the costs involved.

“If you’re going to move forward, ask yourself if it fits into your budget, and what types of financing or programs are available to you. Talk to other owners; find out how they feel about the franchise.

Look into locations available to see if they will work for you, if you live close enough, and if there is competition nearby.

A free standing location in the boonies is not going to make it, there needs to be a reason for your customers to come to your location in order for you to survive,” he explains. “Look at leases and make a realistic and pessimistic budget. If you can make it in the worst-case scenario, you’ll do very well in the best-case scenario.”

When Samji isn’t at his Wok Box, he enjoys relaxing with a Bollywood movie or some soft Indian music. “Being an accountant I don’t pass along my work to anyone else. Instead, I put on some music and get the paperwork done,” he says.

Timely financials is an important measure of success. Taking care of everything from deposits and financials to royalty statements and corporate tax returns,

Samji is proud of his self-reliance.

Samji highly recommends Wok Box because of its winning concept. “There is nothing like it out there, and it’s growing as a franchise,” he says. In addition to the visionary corporate team and expansion plans for the U.S., the notion of a menu not limited to one particular country excites Samji. “The Asian theme is so wide open, we’ll never run out of delicious ideas to sell to our customers,” he says. “The concept is brilliant, and if it’s run properly, it can be very profitable and satisfying.”

Identifying the biggest problem in North America today is job satisfaction. Samji says surveys show that 40 percent of people are unhappy with their jobs. “I’m not a part of this 40 percent. Wok Box makes me very happy and gives me a reason to wake up in the morning,” he says. “I have many regulars now, from different backgrounds and of varying ages.

Being acknowledged by them, serving and seeing them satisfied makes my day, everyday.”

For more information: Website: www.wokbox.ca/why-choosewok-box

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Franchising USA

ex per t advice

Julie Lusthaus & Mackenzie Dimitri, Einbinder & Dunn, LLP

Pending Franchise W h a t F r a nc h i s o rs a nd F r a nc h i sees N eed t o Kn o w

Franchising USA

“In 2011, the Coalition of Franchisee Associations released a ‘Universal Franchisee Bill of Rights,’ which identified ‘basic terms of fairness’ the Coalition determined should be included in all franchise agreements.”

Legislation Franchisors and franchisees alike should be aware of pending legislation in several states, which, if enacted, could cause dramatic industry changes.

Legislators are recognizing the unequal bargaining power between franchisors and franchisees, and many are now attempting to ‘even the playing field’ between the parties by codifying increased protections for franchisees into state law.

The idea is nothing new. Franchisees have been attempting to increase their bargaining power in franchise relationships for years. In 2011, the Coalition of Franchisee Associations released a “Universal Franchisee Bill of Rights,” which identified ‘basic terms of fairness’ the Coalition determined should be included in all franchise agreements. These included, among other things: The right to freely associate with other franchisees; a right to rely on a franchisor’s good faith, fairness and exercise of due care; a right to renew a franchise agreement under reasonable terms; a right to fair sourcing of goods and services; a right to fairness in the dispute

resolution process; and a right that restricts a franchisor’s ability to terminate the relationship without a required showing of good cause.

In states like Massachusetts, Maine and Pennsylvania, pending legislation seeks to incorporate some of the rights franchisee groups have identified as integral to the success of the franchise industry. If the pending legislation passes and successfully accomplishes its objectives, other states may seek to follow suit. The proposed Massachusetts Fair Franchise Act cites the “profound imbalance of contractual power in favor of the franchisor” as one of several reasons the law should be passed.

The Act addresses the common franchisee grievance of unfair competition and seeks to limit a franchisor’s ability to terminate a franchise agreement without good cause. The Act also seeks to significantly limit the amount of liquidated damages franchisors can recover from franchisees and would impose a duty on franchisors to deal fairly and in good faith when exercising discretion.

In Maine, pending legislation known as “An Act to Enact the Maine Small Business Protection Act” was proposed in 2013. Similar to Massachusetts, the Maine Act would restrict the circumstances under which franchisors can terminate franchise agreements, would require franchisors

to compensate franchisees if they permit unfair encroachment, and would limit the ability of franchisors to enforce post-term covenants against competition.

In Pennsylvania, legislators recognize that franchisors who “simply [act] in compliance with the terms of [a] franchise contract with a franchisee [are] not necessarily dealing with [franchisees] fairly and in good faith.”

Pending legislation there seeks to restrict a franchisor’s ability to limit sources of equipment and goods – regardless of whether or not those goods are branded with the franchisor’s trademark – and would prohibit franchisors from selling new franchises in “unreasonable proximity” to an existing franchisee.

The Pennsylvania Act would also limit the scope of non-competition provisions, an important aspect of the franchise relationship for franchisors and franchisees alike.

A common grievance among franchisees in various franchise systems is that franchisors do not consult with franchisees nor seek their input with regard to marketing, advertising, product development or other business management decisions. This is not particularly surprising, as franchise agreements do not typically require franchisors to do so. A statutory requirement that requires franchisors to act in good faith, or which precludes a franchisor from unreasonably terminating a franchise agreement, could go a long way in providing some measure of comfort to franchisees who are frequently required to sign a franchise agreement on a “take it or leave it” basis. On the other hand, a franchisor’s abilities to terminate franchisees for material defaults of their

Franchising USA

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ex per t advice

Julie Lusthaus & Mackenzie Dimitri, Einbinder & Dunn, LLP

“If the bill passes, the frequency, nature, and quality of the training provided by franchisors could be the subject of extensive litigation, as the terms are highly subjective.”

Julie Lusthaus

Mackenzie Dimitri

contractual obligations and to enforce noncompetition provisions protect not only the franchisor, but existing franchisees as well, and are essential to the success of the system.

Regardless of how these statutes will impact the franchise relationship, if passed they will likely result in increased litigation as both parties seek judicial clarification of ambiguous standards and terms set forth therein. The Pennsylvania Act, for example, imposes an obligation on franchisors to provide initial training and continuing commercial or technical assistance throughout the entire term of the franchise agreement. If the bill passes, the frequency, nature, and quality of the

Franchising USA

training provided by franchisors could be the subject of extensive litigation, as the terms are highly subjective. Other provisions, which require franchisors to act in “good faith” or require franchisors to prove “good cause” for terminating a franchise agreement, are also likely to end up as fodder for the courts.

Ultimately, it remains to be seen what effect passage of these various statutes would have on franchising. One thing, however, is undisputed - both franchisors and franchisees should continue to monitor the pending legislation, and should consult with legal counsel before entering into franchise agreements, seeking to enforce contractual obligations or seeking to

terminate the franchise relationship.

Attorney Julie Lusthaus is a partner in the firm of Einbinder & Dunn, LLP. She focuses her practice in the area of franchise law, serving as counsel to both franchisors as well as franchisees. She can be reached by phone at 212-391-9500 or 914-705-5417 and via email at jcl@ edlawfirm.com.

Mackenzie Dimitri is an associate attorney practicing franchise law and related litigation on behalf of franchisors and franchisees at Einbinder & Dunn, LLP in New York City.

For more information: Website: www.ed-lawfirm.com/

Page 87

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