Franchising USA - January 2014

Franchising usa T he ma g a z ine for franchisees

VOL 02, ISSUE 03, JAN 2014

$5.95 www.franchisingusamagazine.com

New Year’s Resolution :

change my destiny

the

snapchat effect

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FEATURE: HOMES SERVICES LATEST NEWS

tradeshows

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 2, ISSUE 3 january 2014 publisher: Colin Bradbury. colin@cgbpublishing.com

EDITOR: Jessica Spoto. editor@cgbpublishing.com

SALES DIRECTOR:

from the

Editor

Vikki Bradbury. vikki@cgbpublishing.com

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

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: wok box

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

Welcome to the first issue of 2014, which continues to offer top expert advice from the industry of franchising.

A new year often starts with resolutions some we stick to, others fall to the wayside. If your resolutions include the dream of owning your own business and taking the road to entrepreneurship then Franchising USA has some sound advice and great franchise opportunities for you to consider.

George Knauf, Senior Franchise Business Attorney of Franchoice, shares with us various motivators and factors to consider in his article titled, “New Year’s Resolution: Change My Destiny.”

Our cover story on Wok Box details how the quick service restaurant came to serve its fresh, Asian inspired dishes, while also sharing what tasty franchise opportunities they are currently offering.

In this issue we also take an in-depth look at the Home Services industry which offers a wide selection of franchise opportunities from construction and building, home cleaning, home assistance, junk removal, lawn care... the list is endless and if this is something you are considering then some sound advice is

offered in this article.

Jason Power of Shelton Power LLC, writes about the difference between a Franchise and a Business Opportunity, explaining what needs to be considered when making your choice.

As usual we have our regular Vets News and contributions from Vetfran and Martha O’Gorman’s Liberty Tax who discusses how IFA’S Vetfran complements the franchise model in the face of Veterans today.

Interested in what is happening in the International market? Take a look at our International News which gives some insight into what is happening and what to consider when franchising overseas.

The array of business profiles and focus pieces included in this issue also bring to light franchise opportunities for you to explore. Don’t miss our news pages, dedicated to sharing what’s hot and happening in the franchise world.

Finally we love to hear from our readers and if there is anything you would like us to cover please let us know and we will endeavour to make it happen in a future issue. Your feedback is most welcome.

Good luck on your road to entrepreneurship and may 2014 be a great year to all.

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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35

january 2014

On the Cover 10 Cover Story

22 New Years Resolution: Change my Destiny

Wok Box: Wok This Way to Great Franchising

16 The Snapchat Effect

Dan Kim, Founder, Red Mango

George Knauf, Senior Franchise Business Advisor, Franchoice

28 Attending Tradeshows

Sonia Perrone, Director of Marketing, MFV Expositions

66

44

22

f ra nchising usa

Contents In Every Issue

Focus

06 Franchising News Announcements from the Industry

14 Express Employment Professionals

35 Feature Article

Home Services Supplement: Franchising 101

Franchisor in Depth 24 Ram Jack

53 Interface Financial Group

Have Your Say 50 How To Set Yourself Up For Multi-Unit Growth and Success Sheetal Duggal, Multi unit franchisee,

Sears Hometown and Outlet stores

32 Apex Fun Run

Spotlight On Service 66 Tenet Financial Group Diane Rosenkrantz

Franchising USA

Franchise Profiles 20 Kid to Kid and Uptown Cheapskate 48 Red Mango 64 Care Patrol

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16 The Snapchat Effect: How Social Media is Changing the

Rules of the Digital Market Dan Kim, Red Mango

66

Expert Advice

22 New Years Resolution: Change My Destiny George Knauf, Senior Franchise Business advisor Franchoice

28 Attending Tradeshows: 2014 Franchise Expo South Sonia Perrone, Director of Marketing, MFV Expositions

44 Franchise vs. Business Opportunity:

The Debate on Every Entrepreneur’s Mind Jason Power, Shelton and Power, LLC

62 WC3 Validation: How Does It Work and

Does It Effect SEO For Franchises?

Adam Heitzman, HigherVisibility

54

58 How IFA’s VetFran Compliments the Franchise Model:

The Face of Today’s Veterans Martha O’Gorman, Liberty Tax

68 The Great Shift: A New Era For the Job Market

and Why We Must Act Bob Funk, Express Employment Professionals

70 Creating Your Own Home Ground Advantage Greg Nathan, Franchise Relationships Institute

57 What’s New 58 Martha O’Gorman, Liberty Tax 61 Brian Fish, WIN Home Inspection

62

Veterans’ News

International News 72 Pinkberrys Global Scale: An Interview With Ryan Patel 74

Are We Ready To Franchise: Sunil Dewan

80 International News From Australia Franchising USA

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what’s new!

Kid to Kid Opens 100th Franchise Location Kid to Kid, an international children’s resale store, recently opened its 100th franchise in Frisco, TX. In addition to the 100 U.S. locations, Kid to Kid, a brand of BaseCamp Franchising, is also scheduled to open several new stores in Portugal this year.

“My husband and I decided to open a store in the Frisco area because it’s such a rapidly growing area with a lot of families,” Tracy Schwegman, Frisco store owner says. “We are both thrilled about being the 100th Kid to Kid store!”

As a Kid to Kid store owner, Schwegman fell into it by accident.

“Almost six years ago, I saw a Help Wanted sign in the window of a Kid to Kid in Plano, Texas. Four years later, I became the owner,” Schwegman says. Today Schwegman and her husband own two locations, one in Plano and one in Frisco.”

Kid to Kid stores pay cash up front for like-new kids’ and maternity clothing, toys, and baby equipment, and resells the products at a fraction of what they would cost new. “Our business is thriving because it’s a win-only proposition,” Shauna Sloan, Founder of Kid to Kid says.

The Frisco store will be joined in celebration by the remaining stores. “I can hardly believe that we’ve reached the 100 store milestone!” Sloan adds. “This is a growing and thriving business that offers our store owners with unprecedented technology, reporting and support.”

For more information: Website: www.kidtokid.com Phone: 801-359-0071 ext. 101.

Coca-Cola Splits in Effort to Focus on Franchising Coca Cola Co. recently announced plans to restructure its North American business in an attempt to expedite its refranchising efforts and streamline its focus.

As of Jan. 1, 2014, the integrated North American business will be segmented into a traditional company and a bottler operating model. The company will consist of two operating units: Coca-Cola North America and Coca-Cola Refreshments.

“Now, we are in a position to leverage this flexibility to return to a traditional company and bottling operating model in North America, which will enhance

Franchising USA

our focus on execution and accelerate the refranchising of our bottling system in our flagship market,” said Coca-Cola CEO Muhtar Kent in a statement.

Coke announced in April it would return to the franchise model in the U.S. In 2010, Coca-Cola paid $12.3 billion to buy its biggest U.S. bottler, securing control of production and distribution. By franchising the company, Coke can reduce costs associated with maintaining delivery trucks and warehouses, while retaining control over the bottling process.

Cahillane was once seen as the potential successor to CEO Kent. Now, Ahmet Bozer, the president of Coca-Cola International who will take control of the Latin America Group in the restructuring, is Kent’s clear No. 2.

Coca-Cola also announced that Americas chief Steve Cahillane is departing.

Website: www.entrepreneur.com/ article/230402#ixzz2nxkR3c1f

For more information:

Sincerely Yogurt Takes Frozen Yogurt to New Healthier Heights When John Major spent two weeks vacationing in California in 2009, it led him to the discovery of a lifetime: a frozen yogurt formula that was like no other.

Following the success of its first location, Sincerely Yogurt developed proprietary all-natural Greek-style tart yogurts

that featured a higher count of live and

active cultures and was endorsed by the

“I learned more about yogurt in six

National Yogurt Association. Major also

said Major, Founder and President of

and added supplement boosters for even

“A lot of franchisees admit that our healthier approach and attention to quality is what got them interested,” Major says.

“What sets us apart is everything we do is natural and healthy for our customers.”

months that I had ever known in my life,”

incorporated a line of healthy smoothies

the Pittsburgh-based frozen yogurt and

more targeted nutrition.

The consumer demand and Major’s approach has led to franchisee interest that has resulted in a 50 percent growth in new stores over the past year.

smoothie chain, Sincerely Yogurt. “But

For more information:

to meet my passion for healthy lifestyles

With that approach, Major has attracted

I wanted to hold our brand to the highest

attention from franchisees along the east

coast, southern states and as far west as the

standards of taste and quality.”

Mississippi River.

Website: www.sincerelyyogurt.com/ franchise Phone:1-855-826-5524.

CPR Cell Phone Repair Partners with Merrymeeting Inc. to Create MMI-CPR LLC CPR Cell Phone Repair, the pioneer and fastest growing wireless technology franchise in the United States, recently announced a company partnership with Merrymeeting Inc., a Clevelandbased company with a portfolio of eight service-based franchise concepts including Geeks on Call, Computer Troubleshooters, Sunbelt Business Brokers and Frontier Adjusters.

The asset-based partnership with Merrymeeting Inc. will launch a new company, MMI-CPR LLC, in which

Merrymeeting will have a controlling interest. In addition to providing further resources to grow the supply chain and enhance the Company’s digital and online media, the partnership secures a foundation to rapidly expand the footprint of CPR’s franchised store locations.

“Partnering with Merrymeeting opens new avenues and deepens our capabilities in terms of service and operations,” said Jeremy Kwaterski, CEO of CPR Cell Phone Repair. “We’re looking forward to the new working relationship with

the executive team at Merrymeeting and sharing a common outlook with new

strategies and ventures moving forward.”

For more information: Website: www.cellphonerepair.com Phone: 877-856-5101.

Franchising USA

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what’s new!

New Caribbean Business Opportunity with Master Franchise Rights Flip Flop Shops® seeking Caribbean franchisee partner; includes three established retail shops Flip Flop Shops®, one of the fastest growing retail chains in North America, recently announced an exciting new Caribbean business opportunity for the master franchise rights throughout the region, including three already wellestablished shops in St. Thomas, St. Maarten and Curacao.

“This is a truly unique opportunity to become an integral partner with a key player in the footwear and retail industry,” Brian Curin, President and Co-Founder of Flip Flop Shops says. “We’re excited to offer considerable expansion in this region as the Caribbean lifestyle embodies what Flip Flop Shops is all about – enjoying the outdoors and embracing a healthy, active and relaxing lifestyle.”

The franchise-based company operates nearly 100 locations globally, and has more than 100 shops in the development pipeline, not including this new Caribbean franchise opportunity.

In 2013, Flip Flop Shops was named to the Inc. 500 | 5,000 list of the fastest growing private companies in the U.S. for the fourth

year running, boasting 860-percent growth in the last three years alone.

“We’re a growing company and we’re not just looking for a partner; we’re looking to find the right partner,” Darin Kraetsch, the CEO and Co-Founder of Flip Flop Shops says. “We’re seeking an enthusiastic, long-term partnership with someone interested in embracing the Flip Flop Shops culture and lifestyle.”

For more information: Website: www.flipflopshops.com Phone: 604.263.0629

new Appointments for Edible Arrangements® signal aggressive franchise growth plans for 2014 Edible Arrangements® has selected Craig Rubinstein as its new Vice President of Development, and Ryan Hostetler has been named Franchise Marketing Manager, as the pioneer and global leader in handcrafted fresh fruit arrangements and treats prepares to aggressively expand its franchise base in 2014.

Rubinstein, who will oversee all domestic and international franchise development for Edible Arrangements, brings more than 20 years sales and management experience with such multi-national corporations as GE, Xerox, Pillsbury and Ralston Purina.

Franchising USA

Most recently he served as Executive Vice President with Edible Arrangements’ sister company Netsolace, which provides technology solutions for Edible Arrangements and the franchise industry.

Hostetler, who also moves over from Netsolace where he was the Marketing Manager, brings extensive digital marketing expertise to the development team. Prior to joining Netsolace and Edible Arrangements, he was Director of Marketing at Atlanta-based digital agency Silly Monster Media where he developed marketing and branding programs for companies in the retail, IT, medical and

entertainment industries. Hostetler’s work has been featured on CNN, NBC News, PBS, Food Network and Variety Magazine.

“We expect the coming year to be one of significant, strategic expansion both in the U.S. and globally,” said Edible Arrangements founder and CEO Tariq Farid. “Ryan and Craig bring the perfect combination of expertise and experience to lead that growth.”

For more information: Website: www.ediblearrangements.com/ franchiseopportunities/

Massage Envy Spa Announces Signing of 1,200th Franchise Agreement Major Milestone Secures Wellness Leader’s Place in Top Percent of Largest Franchises Massage Envy Spa, the pioneer and national leader of professional, affordable massage and spa services, recently announced the signing of its 1,200th franchise agreement.

Only 2.4 percent of franchised brands operate 1,000 or more franchised units, according to FRANdata, the franchise industry’s source for objective information and analysis. With more than 920 operating units and the signing of its 1,200th agreement, Massage Envy Spa is well on its way to being one of the largest franchise systems in the country.

“It’s been a tremendously successful growth year for Massage Envy Spa in 2013,” Joe Luongo, Massage Envy Spa Chief Operating Officer says. “There are thousands of franchise brands across the country, but only a small percentage ever surpasses the

1,200-unit mark. This incredible milestone is a true testament to our franchise partners and unique concept.”

The 1,200th franchise agreement was awarded to Steve and Julie Kambeitz, who will open their third Massage Envy Spa in Ohio.

They have been Massage Envy Spa franchise owners since 2006 and have brought more than 90 jobs to their local communities.

“Massage Envy Spa is an extraordinary brand, backed by a strong corporate team and a proven business model,” Julie Kambeitz says. “We look forward to expanding the brand’s services and creating more jobs in the market with our third franchise location.”

For more information: Website: massageenvyfranchise.com.

Phone: (480) 366-4171

Award-Winning Quaker Steak & Lube® Continues Corporate Expansion the Quaker Steak & Lube® restaurants in Concord, NC, Fort Wayne, IN, and Newport News, Harrisonburg and Fredericksburg, VA will be corporate owned and operated.

The Award-Winning casual-dining franchise Quaker Steak & Lube® known for its Best Wings USA and more than 25 sauces, recently announced it will be acquiring five restaurants in North Carolina, Indiana and Virginia.

Previously owned by 3G Management,

“We are looking to have a stronger corporate presence in these key markets; this represents an important step forward for our brand as we continue with our national expansion plans,” John Longstreet, Chief Executive Officer of Quaker Steak & Lube® says. “We are committed to operational excellence at The Lube®, and this will allow us the opportunity to impact overall brand performance in same store sales.”

The Lube® has experienced significant growth in 2012 with eight restaurant

openings, a 15 percent increase from the previous year and a 10 percent increase in system wide revenues. The company has more than 60 locations across 20 states and Canada.

“We sincerely thank 3G Management and their partners for their hard work and dedication in helping to grow Lube Nation; they have set a terrific foundation and have cultivated a loyal following of Lubies in each of these respective markets,” Longstreet adds. “We look forward to further investing and infusing additional marketing and capital into these fantastic locations.”

For more information: Website: www.lubefranchising.com

Franchising USA

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Wok B ox

Wok This Way

to Great Fra Serving fresh, healthy, Asian inspired dishes, Wok Box is currently offering tasty franchise opportunities throughout the United States.

Wok Box dishes out made-to-order stirfries, including noodle and rice dishes that combine high quality ingredients and flavors from all over Asia, such as China, Malaysia, Vietnam, Thailand and Korea. “We have a variety of menu items from many different Asian countries, so it’s a big factor that we can service a lot of different people their preferences,” Lawrence Eade, Chief Executive Officer of Wok Box says.

Truly an Asian experience, Wok Box resonates to a variety of customers. In addition to a unique menu, Wok Box also offers wheat-free, vegetarian, and vegan options. “Wok Box’s menu features guilty pleasure items to treat customers, while also catering to the everyday person who wants to enjoy a healthy meal,” Eade says. “All dishes are cooked in front of the customer’s eyes in our open concept kitchens. The entire process is high energy.” A step above the typical quick service restaurant, Wok Box restaurants include comfortable seating and a lively atmosphere. “Wok Box offers the quick dining experience people want and takes it to a whole new level.”

Franchising USA

ranchising

Launching in 2004 in Edmonton, AB, Wok Box began as a one off idea founded

by Blair Stevens and two former partners.

Investing his sweat, equity, and muscle into the restaurant, Stevens’ ambition and idea paid off. With Scott Bender joining the company in 2005, Wok Box began franchising throughout Canada. In 2007, Lawrence Eade jumped on board, and for the next five years, the focus of the company was expanding throughout the country.

With 54 Canadian locations up and running, three years ago Wok Box ventured into the U.S. The executive team invested the extra time it took to learn the market, research demographics, and finalize legal issues before moving forward. “We took a lot of time to learn the successes and failures of other franchise restaurants that moved into the U.S. so we could ensure our success,” Eade says. “Now that we have nailed it down, we’re able to push key market penetration.”

Zeroing in on the Pacific Northwest, Wok Box’s first American location opened in Portland, OR, last year. Quickly following

“Wok Box offers the quick dining experience people want and takes it to a whole new level.” suit, Phoenix hosts two Wok Box locations with a third opening in Spring 2014. By this summer, the Dallas area will also be home to five locations. Wok Box has also expanded across the globe and has an operating location in Qatar with two more planned to open soon. With 53 franchise partners and a handful of multi-unit owners, the company is aiming to have 100 signed stores by the end of 2014.

Today, Wok Box is seeking franchise partners throughout the U.S. who have an entrepreneurial spark, positive energy and are problem solvers. “To be a successful Wok Box owner/operator, franchisees need to have a ‘can-do’ attitude,” Eade says, explaining that despite a perfect business plan operating a business is never going to run smoothly 100 percent of the time. “We can teach people about the brand and its system, but if they don’t know how to overcome human challenges and basic obstacles that arise in business, then they are not going to succeed in the

business,” he adds. While prior experience working in the restaurant industry or operating a business would be helpful, it is not necessary. “Wok Box is an entrylevel franchise. We can teach our owners everything they need to know to be successful, and at the end of the day all a candidate needs is a positive attitude,” he says. The cost to purchase a Wok Box restaurant ranges from $275,000 to $350,000 depending on unit size, which typically model between 1,200 and 1,800 sq ft.

Wok Box’s franchising process begins with contacting head office, filling out an application and attending an interview.

During the interview process, the candidate learns more about the company while also sharing their experience, goals, and expectations of the business. After reviewing the candidate’s financial ability, if the individual is approved, the next step is visiting a Wok Box store to taste the product, meet franchisees, and chat with

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Wok B ox

“Wok Box is an entry-level franchise. We can teach our owners everything they need to know to be successful, and at the end of the day all a candidate needs is a positive attitude.”

head office staff. Next, the candidate will attend a Discovery Day, where they will learn in-depth about the operations and opportunities within the brand. The final step involves picking a market, negotiating the franchise agreement and signing the paperwork before moving onto training.

Wok Box’s training is comprehensive and consists of several steps. The first step involves the franchisee visiting the corporate office and training facility in Vancouver, BC. They undergo three weeks of in-store training at the corporate store.

During this time, they cover everything from preparing menu items to learning Wok Box’s management systems. Bringing the franchisee into the store allows them to see the theory and methodology of the brand in action. “A unique aspect to Wok Box’s training process is the business systems we teach our franchisees,” Eade says. “Teaching them the theory behind food and labor costs, the two biggest controllable costs in any restaurant, is crucial.” Finally, there are five days of training with staff and management before opening day, to ensure the team and store are ready. “Once the store is opened, our

Franchising USA

team stays at the new location for at least 10 days to make sure things run smoothly.

Ongoing support is available from there on out” Eade says.

Looking to expand throughout the Midwest and stick to its “East Meets West” slogan, Wok Box brings authentic tastes from across the Asian landscape to people who have never been exposed to these wonderful flavors. Particularly focused on places such as Kansas and Missouri, Wok Box is now ready to bring their product to anywhere in the U.S. “We will talk to everyone and anyone. We’ll learn about them and what’s going on in their markets,” Eade says, adding, “Our doors are always open to learn about new possibilities and opportunities.”

Wok Box is proud of its impressive track record and infrastructure, strong marketing, design, sales and operational staff. “A lot of people think of Wok Box as a start up company, but we’ve been doing this for a long time and bringing the concept into the U.S. has been extremely successful,” Eade says. “Franchisees joining the Wok Box team have the opportunity to be involved in a ground level start up in the U.S., but with all the benefits of an established business behind it. We have a unique and strong head office support network, and that’s going to take us a long way in the States.”

For more information: Website: wokbox.us/why-choose-wok-box

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Franchising USA

focus

E x p ress Employ ment Professionals

Staffing Industry Results in Big Bang for Franchise Owners “As a franchise owner in the staffing industry, you have the opportunity to manage a professional business – one that you can be proud of and make a difference in the community by matching people with jobs.”

Choosing a growing industry is one of the first steps in selecting a successful franchise. The choice often lies between selecting an emerging trend or an industry with a history of success.

Either way, it’s the future growth of the industry you’re trying to predict. Take a look at the staffing industry – it’s more than 120 years old in North America and is in a robust growth pattern. Staffing Industry Analysts’ latest report put total staffing industry market size at more than $136 billion annually, with six percent growth projected for 2014.

So why all the excitement about the staffing industry? Staffing has added more jobs to the market in the past three years than nearly any other industry in North America. The Bureau of Labor Statistics forecasts the staffing industry to be one of the top 10 job-growth industries in the U.S. through 2018. In today’s economic climate, more companies are turning to staffing firms to guide them through the challenges of maintaining a workforce that matches demands, reduces overhead costs,

Franchising USA

and manages ever-increasing regulations.

The staffing industry has survived the test of time, allowing companies to manage their workforce through recessions and high demand seasons. As a franchise owner in the staffing industry, you have the opportunity to manage a professional business – one that you can be proud of and make a difference in the community by matching people with jobs. The American Staffing Association reports that 79 percent of staffing employees work full time – nearly the same as the rest of the workforce – and 88 percent of staffing employees say the work experience made them more employable.

Express Employment Professionals franchisees enjoy great accomplishments in helping people succeed and have found security by taking control of their future through business ownership. The Express franchise system has been ranked the No. 1 staffing franchise in the Entrepreneur 500 for the past three years, and is executing an aggressive growth plan for 2014.

Average startup offices within Express average more than $1 million in sales in their first year, and franchises open more than two years average more than $5.16 million annually. Express franchisees have an effective royalty of just 6.3 percent

of sales, and enjoy one of the highest rates of return in all of franchising. And the excitement continues for Express, having opened a record number of new locations in 2013 and approaching nearly 700 locations in three countries. Express franchise owners come from all walks of life. Recent new owners have backgrounds in pharmaceutical sales, marketing, operations, finance, and more. With two ownership models and 300 available franchise territories, now is the time to explore the Express franchise opportunity.

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

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ex per t advice

Dan Kim, Founder and Chief Concept Officer of Red Mango

The Snapchat Effect: How Social Media is Changing the Rules of Digital Marke ting You may have heard of something called Snapchat.

Many of you may have heard of it as a social media company that Facebook tried unsuccessfully to acquire for three billion dollars last November (and yes, that’s billion with a b). And if you have no idea what I’m talking about, your children are probably thankful for something they don’t want you to be a part of... which is at least one reason why you should read this article.

Snapchat is a very popular Smartphone app that allows users to send selfdestructing photographs to each other.

Think Mission: Impossible, but without the mini-explosion and smoke.

More specifically, Snapchat is a new way of communicating in which I could send you any picture that I have taken with my iPhone, but only allow you to see it for a short duration of one to 10 seconds. To see my photo, you would have to open your Snapchat app and touch the screen with your finger, during which time you would be able to view the picture only for the number of seconds I have determined, and only within the app. Once your time is up, the app permanently deletes the picture, forever.

It is social media at its best in that it enables users to send highly personalized and private messages to each other through an efficient, objective oriented real-time communication protocol. But it also breaks the rules of social conversation and sharing that were previously defined by the reality of permanency and inherent loss of control over where your posts and messages could end up.

If you think about it, this Snapchat effect is not really an evolutionary advance in human communications. Rather, it is a disguised reversion to the ways we have been speaking to each other since the telephone was invented over a hundred years ago. When telephones were our only option, everything we said to each other was shared in real time, just like the

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“Heavy users of social networks who were previously spending a significant amount of personal time on popular “traditional” environments like Facebook and Twitter are no longer doing so.” way we currently send messages to each other on our Smartphones and computers.

But once we hung up, there was no way we could relive, replay, or share that conversation with others (unless, of course, you work for the NSA).

Email, text messaging, Facebook, and everything else we use today to communicate with each other have eliminated the fleeting quality of conversations, and have allowed us to speak with more people in less time, but not without requiring those conversations to be permanently engraved into someone’s digital “wall,” Smartphone, or hard drive. At first, this transformation from “now” to “now and forever” was liberating because it exponentially expanded the reach of our voices and helped us stay connected to more people in ways that were previously impossible.

And although we knew that things we said within our digital world were permanent and irreversible, we found comfort in the fact that only our friends, family and peers would have access and know-how to participate in things we had to say online, and that those we didn’t want to share our thoughts and ideas wouldn’t be a part of those personal discussions. This paradigm is exactly how Facebook became popular; when this social network started, it was available only to college students, which meant that parents, teachers and employers were forbidden from seeing what we had to say about life, school, work, etc.

Today, anybody and everybody can join the most popular social networks...and by my standards, they have. Facebook, Twitter, Foursquare, Yelp, eHarmony; there is a very good chance that both the generations below you and above you are online. This means that in addition to your children, nieces and nephews,

your parents and even your grandparents are connected to you online as much as they are offline -- if not more so. (I, as an example, communicate with my parents more through email and Facebook than I do in person or by phone... and my motherin-law is undoubtedly the subject of nearly all of our family’s Skype sessions). Yes, there are these “privacy settings” we are allowed to set within these various social forums, but they seem to be getting less and less relevant and protective each year, especially as social networking companies become publicly-traded corporations and succumb to the needs of higher earnings expectations, which can only be met with more and smarter advertising, often at the expense of more details about who you are and what you do on a minute-by-minute basis.

Random fact: My 60-year-old parents take and share more selfies of themselves than my 16-year-old niece. Now that I think of it, I hope they’re not on Snapchat.

This digital proliferation and the social network ubiquity it has created is the very reason why Snapchat is apparently worth more than three billion dollars, and more importantly, why the rules and norms of social media marketing (which as of just last year provided significant guidance as to how small businesses should advertise their businesses online) have evolved yet once again.

Without even having to go into a unbiased comparative exploration of the many different social marketing strategies we have implemented over the past 18 months at Red Mango, I can tell you with absolute certainty that our company’s social media marketing efforts have been less effective in 2013 than any prior year, a fact that is of particular interest to us because Red

Mango customers are predominantly millennials born with digital DNA. Snapchat is the emblematic example as to why our advertising on channels like Facebook and Twitter has become less efficient on a dollar-for-dollar basis.

Heavy users of social networks who were previously spending a significant amount of personal time on popular “traditional” environments like Facebook and Twitter are no longer doing so. And a large majority of these heavy users are customers of Red Mango, as they are of many other retail businesses that cater to values and ideals that are important to popular culture and society.

There are many differing reasons people cite as to why this change is happening, but the reason I find to be the most compelling is in many ways connected to the fact that my parents, vendors, coworkers and even franchisees are now active citizens of the same social networks in which I was once able to share thoughts and ideas that I may not want to share with the entire world.

Yes, social media is popular because it allows us to stay connected with each other in fluid and multidimensional ways that were previously impossible. However, the power and longevity of the social networks in which we thrive is more critically dependent on our ability to be

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ex per t advice

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ex per t advice

Dan Kim, Founder and Chief Concept Officer of Red Mango

“Brands need to become people in order to develop an authentic online presence that consumers trust.” than larger companies that consumers can easily (and often do) characterize as institutional and informal.

who we truly are (or more often, who we want to be) without having to worry about what “other people think,” or about the impact our personal thoughts or random ideas may have on the existing real world relationships that we don’t want to change. As humans, we are at our most comfortable states of being when we are in places where we thoroughly understand everyone and everything within the immediate environment we often call our safe zone. And this environment is only possible when the conditions of privacy we are promised are much more than a long set of rules drafted by attorneys who expect us to simply click “accept.”

The magic of Snapchat’s disappearing photos is exactly the kind of tangible privacy that we value more than the jargon most often found in that obscure section of a website called “our privacy policy.”

And when consumers feel protected by a level of privacy they can feel, see and trust, they will spend more time being themselves sharing their true ideas and real preferences in digital worlds like Snapchat that all businesses should strive to become a part of in order to become effective and relevant marketers.

All of this points to the fact that social media marketing needs to become more targeted and personal than ever before.

Broad audience advertising may continue to enter our homes through television sets and radio stations, but advertising that actually influences people to develop a

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strong personal affinity towards goods and services will only happen when consumers allow brands to become a part of environments where guarded suspicions of traditional advertising are no more, and where a genuine invited interest sets a trusted transparent platform on which consumers can feel comfortable learning more about the things they are interested in buying. And the most effective way to do this is for companies to think and act like individuals with unique personalities and voices that people can actually see and trust. Taking Snapchat as an example, brands that want to reach people through this channel will have to become a person on Snapchat... somebody who not just talks, but also listens to everyone who has something to say. Brands need to become people in order to develop an authentic online presence that consumers trust.

This is where small businesses can really succeed and even perform more effectively than larger companies with much larger advertising budgets. I believe that it is much easier for small businesses to create trustworthy online personalities than it is for larger organizations, primarily because small business owners in general tend to be more engaged and spend more time on all aspects of their business operations than larger companies with a large number of people doing a large number of tasks.

And these smaller companies with unique personalities that consumers can engage with and trust have much more influence

So the next time you hear about Snapchat, I hope you will not only know what it is, but more importantly understand how people’s inherent desire for comfort and privacy will continue to position social media marketing as a form of effective advertising that will remain accessible to small business owners, and that will continue to help level the marketing playing field for all businesses regardless of size.

Yes, you can send me a Snapchat, if you want to see what it’s all about. Find me at dankimsnap.

Dan Kim is the Founder and Chief Concept Officer of Red Mango, a leading national frozen yogurt and smoothie franchise with more than 260 units.

He regularly engages with almost two million followers on his Twitter accounts @dankimredmango and @redmango and Facebook fans base for /redmango and /dankimredmango. He is also active on his personal Facebook account at fb.com/frozenyogurt.

For more information: Website: www.redmangousa.com

Dan Kim

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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.

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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.

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prof ile

BaseCa mp Fra nchising

Second Hand Clothing, First Class Brands

Kid to Kid and Uptown Cheapskate: Sophisticating The Resale Industry

Kid to Kid and Uptown Cheapskate are not your average thrift shops.

These sister brands franchised by BaseCamp Franchising are revolutionizing the resale industry with an upscale approach, utilizing sophisticated software and proven operational techniques that have been refined for over twenty years.

These recession-thriving franchises not only cater to an underdeveloped market, but the environmentally-sound model builds a band of loyal followers.

Kid to Kid, founded by Shauna and Brent Sloan in 1992, prides itself as the best of kids’ resale, buying and selling only the highest quality children’s and baby products. Unlike a typical consignment shop, Kid to Kid pays cash on the spot or more in store credit for gently used maternity items, baby gear, toys, kids’ apparel, shoes and accessories. These items are then sold in the stores at up to 70 percent off of mall prices. There are now eighty-four Kid to Kid locations in the

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U.S. and sixteen locations in Portugal with the hundredth store opening on December 20 in Frisco, Texas.

In 2009, Shauna and Brent’s children, Scott and Chelsea Sloan, founded Uptown Cheapskate, a teen and young adult fashion exchange specializing in name brands, current fashions and designer couture. Similar to Kid to Kid, Uptown Cheapskate buys fashionable clothes, shoes and accessories from its customers, and then sells them for a fraction of the retail value. In just four years, the company has grown to thirty-three franchise locations nationwide with more than fifteen already scheduled to open in 2014.

Both Kid to Kid and Uptown Cheapskate stores manage their inventory using a sophisticated software program with a database containing thousands of brands.

“We built our buying software so people from all walks of life and various fashion backgrounds can correctly price an item for sale in the store,” Scott Sloan says.

“This, combined with our dedicated franchising support staff and proven systems, has allowed our franchisees to

realize the potential of the concept.”

The potential of the stores’ success is evident in the multi-store ownership within the franchises. “Many of our franchisees own multiple Uptown Cheapskate or Kid to Kid stores,” Chelsea Sloan adds. “Many owners who begin with owning a Kid to Kid go on to open an Uptown Cheapskate as they catch on the vision that ‘used makes sense’. Owning multiple stores or brands is a natural extension.”

“Kid to Kid is thriving because it’s a win-only proposition,” Shauna Sloan says.

“Families win when they get paid for the nice things their kids have outgrown.

Shoppers win and save when they outfit their kids at a fraction of the cost of new items. Our local store owners win by growing profitable businesses and our communities win as millions of quality items are conveniently recycled to new homes.”

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

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RESALE WITH AN

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support ç Comprehensive maximizes your profitability

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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

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ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

New Year’s Resolution: “Change my Destiny” It’s that most wonderful time of the year… When we all start assembling those New Year’s Resolutions that we will try to carry forward for our own benefit.

For the past 15 years you would find “1. Spend more time at the gym” on my list. There are a few problems with that resolution I have been so fond of trotting out which has caused it to be an almost certain failure.

The first problem with it is that it is not specific, where are the goals of what I wanted to achieve that can be measured?

Second, I have gone to a place and looked busy for long periods of time but sought no expert advice, guidance or process

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improvement. Third, I am not being held accountable to meet my goals; I have not incorporated friends and family into my process as my cheerleading team.

ask: What is holding you back from your dreams?!

But I am not alone!

“I could not give up my paycheck cold turkey.”

Every winter I get the great honor of talking to hundreds of amazing corporate executives, many that come to me after years of taking the same approach to controlling their destiny that I have with my gym resolution. They have looked busy to anyone watching from the outside, they have not brought on an expert to guide them and they have not formed a team from their family that can act as their cheerleaders and hold them accountable to making measured progress towards their goal of being the business owner, not an employee, and building both ongoing revenue and an asset they can sell.

So, if you are reading this publication and are currently employed I would have to

Here are some quick myth busters:

• Great, I would suggest a semi-absentee or absentee business that you can ramp up while you keep pursuing your job or career.

• Five to 10 hours per week split between you and possibly a partner or family members is all it takes.

• This WOULD be a real brick and mortar business with a manager leading the staff.

• This is NOT a part time home based opportunity that is entirely dependent on you and where you would come home to after a long day, spend time with your family, have dinner then try to build

“Is this your year, the year you finally take concrete steps towards controlling your financial and career destiny?” another business at night when you are tired and most people are not doing business. Most of those endeavors are doomed from the start.

• A note of advice: Don’t go and just empty your 401K! There are professionals who do this.

“I don’t know if I have the skills to be a business owner.”

“The idea of taking risks in my career or in business is scary to me.”

• Chances are you have one, or both of the most critical. Those are management or sales skills.

• Interestingly, business owners consider being an employee to be very low potential and high risk.

• A franchise is an outstanding starting point if you have this doubt. A good franchisor will measure your skills before offering you a franchise then make sure you have all the tools and resources to adapt your skill set to their operation.

• Risk scares us all, but the feeling of risk is amplified by the unknown. Eliminate the unknowns by conducting a good search and using professional resources.

“I don’t have the cash to start a business today.”

• Remember your first time on the high dive at the pool? Taking a step like owning a franchise can feel like that at first, but in time you may have as much fun with it as many of us do!

• It is very common for our candidates to use outside funding solutions to get their business started.

• Physiologically, the feeling of fear and excitement can sometimes feel like the same thing. Maybe the feeling that held you back was actually excitement!

• Not being able to buy their house with cash has not stopped many home buyers.

“My spouse does not want me to leave my job.”

• On the lending side there are conventional and SBA as well as equipment leases to pursue.

• There are some creative approaches where professional service providers roll over your retirement account in such a way that apparently does not trigger taxes or the withdrawal penalty. This approach would let self-guide those investments and invest in your company rather than a typical retirement fund where a fund manager you don’t know will invest in companies where you don’t know the CEO and he, or she, does not know you.

• Maybe they have seen an approach similar to my gym resolution and need to see a higher level process being executed.

• Spouses are more supportive in the process of selecting a business when they are involved from day one. They will have their own questions to ask that may be very different from your questions.

• Spouses like to know that someone in the mix is operating as an advisor, not a salesman. We work through this with candidates and their spouses all the time.

George Knauf

So, is this your year, the year you finally take concrete steps towards controlling your financial and career destiny?

Independence and control in an insecure job world is an achievable goal for many people, even folks who thought it to be impossible. The tools and resources are there, you are reading one of them now.

It is just a matter of taking your approach to the next level and getting an expert advisor and executing a good investigation or the best options in the market that are perfectly matched to you.

As for my gym resolution, I have specific goals and a professional trainer who will keep me on course and make sure I am using best practices.

I’ll see you at the gym and hopefully we will get to talk about your interest in franchises someday!

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.georgeknauf.com/

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ex per t advice

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f ra nchisor in depth

Ra m Jack

Rising with Ram Jack Since opening shop in the early eighties, the foundation of the Ram Jack business has been serving customer satisfaction.

Removing any anxieties one could have regarding their home foundation, Ram Jack is able to provide honest and straightforward advanced solutions.

Founded and operated by Steve Gregory, his son Darren, and grandson Randon, today Ram Jack is located in 38 states, Canada, Costa Rica, Panama and Puerto Rico. With 24 franchises, 32 dealerships, and three family owned locations, Ram Jack is a force to be reckoned with.

Tracing back to its roots, the story starts in 1975 after Steve graduated from college and joined his father’s small pest control company in Ada, Oklahoma. Working alongside his father for the following 15 years, the Gregory’s treated infested

areas while also providing foundation repair due to termite damage. Finding vast opportunity in the foundation repair industry, Steve switched his focus to solely foundation repair. Experimenting with steel piling in the early eighties, in 1985 he founded the first Ram Jack patent: the dual cylinder driving method. A game changer in the industry, Ram Jack became one of the first companies capable of putting steel in the ground.

With their own proprietary companies established in Oklahoma, Texas, and Arkansas, in 1996 the Gregory’s decided to open a dealership. “This was our way of franchising the business without all the regulations and stimulations that come with franchising,” Steve Gregory explains. Then, in 2008 Ram Jack began franchising the business. “We wanted to enforce territorial jurisdictions to promote branding of the Ram Jack name, as well as offer complete company coaching,” he says. While the business operated under the Ram Jack name prior to 1996, it was then in commission as a single entity piling business. “In the early days of the

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foundation industry, businesses were using a lot of techniques that didn’t work and our competitors were not approaching their projects in a scientific engineered fashion,” Gregory explains. “On the other hand, we were testing all our equipment in the field while running calculations.” Recognized by the International Code Council Evaluation Services, Ram Jack was the first to set the standards for the industry.

More than simply home and commercial foundation repair, Ram Jack also offers services in wall tie backs, new construction, bridges and boardwalks, pedestrian bridges, tower/guy anchors, light poles, sign supports, pipelines, and bulkheads. Ram Jack’s repair methods and unique piling solutions provide the strength and stability that can only be found in the best American steel. With the ability to provide fast installation and a strong pile with the use of The Ram Jack® driving head, this tool delivers rapid power to long sections of piling. The Ram Jack system incorporates dual rams that drive deeper into permanent strata with their Hydraulic Rams, and uses proprietary

“Averaging one new patent a year and with 20 patents for advanced designs under their belt, it’s easy to say that Ram Jack gets foundation repair methods.”

variable-length guide sleeves, which are preferred by engineers and designed to stiffen the piling in less-compacted surface layers.

Experienced projects of all sizes, Ram Jack constructed the largest solar field in the world in 2011, located in Arizona.

Following this achievement, the company then built another the following year in California’s Mojave Desert. Working in correspondence with the Federal Emergency Management Agency (FEMA), Ram Jack installs steel pilings, stabilizing structures and in many cases, raising structures in storm areas. Using the patents and proven systems, Ram Jack is able to service the coastal regions so that customers can be protected under FEMA. “FEMA requires homes to be raised above the storm surge to offer insurance. We’re able to lift and raise homes either on their wood post foundations with the structure on the pile, or raise them and construct a permanent foundation under them,” Gregory says, explaining that Ram Jack performs these processes in a way that will sustain lateral loads caused by storms, while also working economically to stay within the budget of the homeowner.

Averaging one new patent a year and with

20 patents for advanced designs under their belt, it’s easy to say that Ram Jack gets foundation repair methods.

Today Ram Jack is seeking industrious, energetic individuals to join the team.

Candidates must possess the essential start-up equipment for their business, however Ram Jack provides financial assistance for more specialized tools.

Franchise owners must have experience in the contracting industry and working with the public, or business experience.

Franchisees will also need office supplies such as computers for forensic analysis, as well as a warehouse location.

Those interested in becoming a Ram Jack franchise owner should contact the company to fill out an application.

Potential candidates will then meet with the team to undergo an interview procedure. Here they will be exposed to all the processes, discover everything the company has to offer its partners, and develop a business plan. If both parties agree the company is a good fit for the candidate, plans are made to finalize the FA, begin training, and marketing.

Ram Jack franchisees are given comprehensive training in operations,

installations, and marketing. Attending both classroom training in the Ram Jack University to learn the company’s proprietary software, tracking, and management, franchisees also undergo in-field training. The entire process is broken down into various stages including two weeks dedicated to company sales and two weeks focused on production.

“Franchisees receive a manual and individual instruction. We give them all the tools, equipment and training needed to hit the ground running. They just need the ambition to do it,” Gregory says.

The interesting thing about the training is it’s ever expanding and the company is continuously striving to go forward with better training and new product lines. Ongoing support is available to franchisees through regular seminars hosted throughout the country, as well as an annual convention. Company engineers are also assigned to assist local engineers in their area, and help build on-order custom designs for jobs when required.

“Ram Jack gives much more support

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f ra nchisor in depth

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f ra nchisor in depth

Ra m Jack

than any other related company in this industry,” he adds.

Marketing its brand through television commercials and radio advertisements, Ram Jack also boasts a well ranked website. Gaining exposure through various public relations teams, a unique marketing tactic of the company is to offer credit in return for branding. “We’re liberal with how we market, for example we’ve exchanged store credit for city bus ads,” Gregory says, explaining how it encourages branding the company name.

The company also holds an array of print materials, including brochures geared toward specific industries such as real estate, engineers and contractors.

The cost of a Ram Jack franchise is $35,000 and covers one protected territory.

Territories are determined by marketing areas as recognized by media stations.

While areas can range in population and geographical size, each territory usually contains around 300,000 households.

Taking into account the cost of all equipment, the total franchising cost runs between $199,000 and $240,000 according to Ram Jack’s FDD. “We’re more interested in finding the right individuals well suited to the industry.

We’re consistently looking for better ways to finance franchisees and get their businesses up and going,” Gregory says, adding that within 12 months the business

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“Franchisees receive a manual and individual instruction. We give them all the tools, equipment and training needed to hit the ground running.

They just need the ambition to do it.” is paying it’s own way so that franchise partners are not continually investing their personal funds. Ram Jack is currently looking to expand in the Florida and California markets, as well as develop throughout the northeast. “We’re not looking at the number of franchisees we add, but the quality of the people who invest. We want to give franchisees as much opportunity and support as possible to make sure they are successful- their success is our success,” he says.

Taking into consideration that most metro areas are fully developed, many homes and buildings are today being constructed on less desirable land. The ability to get the foundation built right on the front end has become more challenging. “Many times if the foundation is not forensically investigated and done with proper engineering in the beginning, it’s going to need to be repaired,” Gregory says.

“Ram Jack’s number one criterion is that the process has to work 100 percent of the time, we don’t tolerate failure. We design, test and retest our products with engineer calculations to ensure the product will do what it’s suppose to do.”

When comparing other foundation businesses to Ram Jack the difference

is not only the insurance in their high quality patented products and branding of the universal name, but also the support of having protected territories and topnotch operations. “We’re superior in engineering and our ability to custom design, manufacture and ship products in a short period of time is impressive,” Gregory says, explaining that all products are evaluated by the International Code Council. One of Ram Jack’s more recent developments is increasing its manufacturing facilities to accommodate extremely large projects, including an entire facility dedicated to powder coating all materials. This powder coating gives the product an advantage of being ecofriendly. With plenty of opportunity to join the multi-faceted company, its close knit family team, and its association of independently organized dealers, franchisees will benefit from access to volumes of information, dedicated field trainers, and the highest rated product on the market. “We’re not the largest and we don’t plan to be the largest, but want to be the best.”

For more information: Website: www.ramjack.com/contact/ franchise-opportunities

Page 27

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

ex per t advice

Sonia Perrone, Director of Marketing, MFV Expositions

2014 Franchise Expo South

Brings New Fr anchise Opportunities to Houston Are you contemplating purchasing a franchise business but not sure if it is the right opportunity for you?

Considering the challenges faced by entrepreneurs trying to launch a small business from the ground up, franchising can provide an alternative pathway to successful business ownership. Unlike a typical small business owner, new and existing franchisees receive ongoing training, support systems, technology and marketing from an established

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franchisor. In fact, franchising continues to outpace the rest of the economy, according to the IHS Global’s Third Quarter Franchise Forecast for 2013. In the past year and a half, the franchise sector accounted for nearly 10 percent of all new jobs, bringing total jobs in the industry to more than eight million today.

As the economy continues to improve in 2014, thousands of new and existing franchisors are now seeking dedicated franchisees to grow their business.

To kick off 2014, the largest franchise event in the South will debut its eighth annual show for the first time at the Reliant Center in Houston, Texas. From February 6-8, hundreds of today’s leading franchise concepts and thousands of entrepreneurs are expected to turn out for Franchise Expo South to learn what opportunities are in store for Houston and across the U.S. In addition to networking, the show will also highlight the latest

“With hundreds of franchise brands in every industry, Franchise Expo South is a great onestop shop for finding the right match for you.” issues affecting the franchising industry and provide attendees with an opportunity to learn from franchising’s leaders during free seminars and in-depth symposia.

Widely recognized as one of the industry’s premier events, the Expo has successfully helped thousands of entrepreneurs find a path to business ownership and become their own boss. If you plan to invest your time and money to attend Franchise Expo South, the time is now to focus your attention on the larger investment at hand. Just like exhibitors, trade show attendees cannot just show up to an event and expect instant results. Attendees need to be prepared in order to make the most of the experience. With careful planning, prospective business owners can navigate the wide variety of industries and investment levels presented on the trade show floor.

Hundreds of Companies With hundreds of franchise brands in every industry, Franchise Expo South is a great one-stop shop for finding the right match for you. From restaurant concepts to service-based franchises and everything

in between, this year’s Expo promises to offer prospective franchisees plenty of

options and new business opportunities

across Texas, the U.S. and Latin America.

As a potential franchisee, there are a

number of things to consider prior to

attending the upcoming trade show. What type of franchise business interests you?

What skills do you already possess? What is the ideal business model that best suits your needs? Do you have enough funds

to get started or will you need financial assistance from the franchisor? Having

the answers to these questions will help

narrow down your search to find the best opportunity.

Dig Deeper Prior to attending Franchise Expo South, it is important to visit the show’s website to see what companies will be exhibiting and compile a list of the brands that interest you. Once these franchise concepts have been identified, you can begin an in-depth evaluation of each company’s opportunity including its business model, initial investments and franchisee requirements.

Upon doing this research, you will probably have even more questions, but that is something to be expected. Most of these questions can be answered during your meetings with the franchise representatives at the trade show. Through these discussions, you will get a better idea

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ex per t advice

Sonia Perrone, Director of Marketing, MFV Expositions

“In the past year and a half, the franchise sector accounted for nearly 10 percent of all new jobs, bringing total jobs in the industry to more than eight million today.”

See you in Houston!

Don’t miss out on this exciting opportunity! Visit Franchise Expo South’s website and register for free using promo code “FRANUSA.” Sonia Perrone is the Director of Marketing of MFV Expositions, which has been producing leading franchise events worldwide for more than 20 years. These global events consistently bring together franchise concepts, at all investment levels, with the most qualified visitors seeking to own their own business.

For more information: if a particular brand is the right business for you. Once at the Expo, you should keep an open mind while walking along the trade show floor, as another concept may strike your interest that you did not previously consider.

opportunities for veterans and much more.

Educational Seminars

The key to success is to conduct a post-

In addition to franchising opportunities, Franchise Expo South features many free seminars and symposia approved for Certified Franchise Executive (CFE) accreditation on a range of topics that are beneficial for new and existing franchise business owners. Topics include financing, how to evaluate the right franchise, how to franchise your current business,

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Website: www.mfvexpo.com.

Website: www.franchiseexposouth.com Phone: (201) 881-1666

Post-Event Next Steps Attendance at Franchise Expo South can

provide you with greater confidence during your franchise decision-making process. show evaluation by assessing your notes

taken during the Expo and prioritizing the

concepts you had the most engagement and meaningful conversations with. Typically,

franchisors will initiate follow up after the Expo, but you can take the lead and set

up secondary conversations to determine

which brands make the most sense for you and your future.

Sonia Perrone

Page 31

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f ra nchisor in depth

A p ex Fun Ru n

Apex:

Teaching leadership and fitness to kids through a high-energy fundraising program, Apex Fun Run is the alternative hasslefree way for elementary schools to afford school supplies and equipment, without forcing teachers to dip into their own pockets.

Spending two weeks in elementary schools, Apex teams teach students specialized curriculums while collecting

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Fun Franchising Building Leaders

record-breaking funds for necessary school supplies. Raising over two million dollars for Phoenix elementary schools last year, today the winning concept is looking to expand into new territories.

Launching three years ago, Apex Fun Run came as the answer to revolutionize school fundraising. When first grade teacher Amy Cannon spent $500 on supplies for her class with no means of reimbursement, her husband and Apex Founder, Scott Donnell decided to take the matter into his own hands. Brainstorming with his former MBA classmates, the group began researching the fundraising industry for unique ways that teachers could raise funds for their classrooms. Aware that the school was tired of product-based fundraisers with no learning opportunities for students, they made it their goal

to focus on two very important yet undervalued topics: leadership and fitness.

Developing the Apex concept, one of the most intriguing aspects of the program is that teachers have skin in the game.

Offering 10 percent of all funds raised to reimburse teachers or provide a means to purchase needed supplies, this motivates them to get involved with the program.

Boasting the slogan “Build Leaders,� along with the educational curriculum the program also features prizes to get students excited about raising money.

Testing the fundraiser in Cannon’s school, the program saw extreme success, and within the first year branched into Texas and Arizona territories.

This is when Lisa Barnhart, a marketing director, discovered the program while

g For Leaders searching for a fundraiser for her children’s elementary school.

Bringing the program to her kid’s school, the program raised more money than ever before in the history of the school. Impressed with the results Lisa and her husband, Jeremy, a partner in public accounting, decided the program was a great product that could be used all over the country. Meeting with Apex’s owners, the couple introduced the idea of franchising the concept. Pleased with the proposal, they invited Jeremy to join the team as Vice President of Franchise Development.

After designing the company’s FDD and franchise agreement, Apex Fun Run began franchising in 2012 and today has 24 operating franchises. “We’re experiencing 100 to 200 percent growth every year in business,” Barnhart explains, adding that from a franchising perspective they are also rapidly growing.

Seeking individuals who can relate to the business, those interested in purchasing an Apex Fun Run territory must be passionate about education, fitness and building leaders. Considering that the program revolves around building leaders and getting kids focused on fitness and heath, franchisees benefit from being a parent, and even more so if they are involved in their child’s school. “Franchisees must understand the need for kids to be taught leadership and fitness,” Donnell says.

“Apex offers the opportunity to serve thousands of kids by teaching them these skills while helping to raise school funds, and have a business you can feel good about at the end of the day.”

The Apex Fun Run fundraiser takes place over a two-week period. This includes; a teacher huddle detailing the opportunity to earn money for their classrooms, a pep rally to excite the students, explain the

“We’re very brand sensitive in the sense that we want people who are passionate about serving kids and serving schools, not just about business.” theme, and announce the prizes awarded for various fund levels, and six days in the classroom. During classrooms sessions, Apex team members, who are typically young, high-energy, athletes, teach the leadership curriculum and hand out prizes based on the pledges earned the day before. Apex’s automated online donations software allows students to receive pledges nationwide as opposed to the traditional yet limited door-to-door pledges. The fundraiser culminates with a high-energy pledged-per-lap run featuring a course constructed of blow-up tunnels, tents, flags, sound system and cones.

This year’s curriculum is called “POWER UP.” Each day students focus on a different letter of the acronym; P for positive attitude, O for others first, W for work together, E for excising the mind, and R for responsibility. These traits are reinforced during recesses and lunch hour to show life examples about how being a good leader means putting others first.

“The students look to our team members as superheroes,” Barnhart says, adding that by the end of the course students are

swarming the team members decked out in the branded neon blue and orange jerseys, asking for their autographs.

Those interested in becoming an Apex Fun Run franchisee should contact the company to learn about its operations and also share their background with the team. “We’re very brand sensitive in the sense that we want people who are passionate about serving kids and serving schools, not just about business,” Barnhart says. Once the initial conversations take place, candidates attend a Discovery Day and visit a fundraiser in action. “You [franchisees] can see videos but there’s nothing like going into a school and seeing firsthand what we do.”

Once the candidate is approved and the paperwork is signed, franchisees attend a two-week training course in Phoenix.

The comprehensive course covers the A to Z on selling the program, operating the fundraiser, and conducting collections.

Franchisees are also given a 250-page manual, watch videos, and attend a live fundraiser to see how to implement everything they have learned. “We cater

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f ra nchisor in depth

A p ex Fun Ru n

“When people find out about us they get excited. Apex offers the opportunity to own a business where you can make a living, and make a difference in the world.” to all types of learners,” Donnell says.

“Franchisees are given all the materials they need, see how they are applied, and at the end of the day all they have to do is sign up schools and serve them as trained.”

In addition to the extensive training provided to both the franchisee and their team members, Apex also provides ongoing support through weekly calls.

“We get on the phone with our Company founder and franchisees, to share ideas, discuss the best practices, talk about obstacles encountered, and figure out how to get round them,” Barnhart says, adding, “Our franchisees bring a lot to the table.

Apex is a family and helping each other expands the value of the brand.”

Currently located in seven states along the west coast, Apex Fun Run is looking to expand throughout the Midwest and east coast, and aims to serve one million kids within the next few years. The cost of purchasing an Apex territory is $35,000 and includes exclusive rights to 40 to 50 qualified schools in a geographical area determined by zip codes. Qualified schools are defined by the number of enrolled students and take into account any government subsidies. Provided with a list of qualified schools in their territory, franchisees are able to contact these schools to sell the fundraising program.

Allotting 40 to 50 schools per territory allows franchisees to host 16 to 18 races a year per team and more if they choose to hire a second team.

Apex is currently working on a new program so that the fundraiser can also be offered to non-qualified schools. “Our goal is to make a difference and serve as many kids as we can. We know these nonqualified schools need money, and since our current model doesn’t work for them, we’re working on a new program that will work so we can build leaders and raise

Franchising USA

money for schools that need it even more,” Donnell says.

All of Apex’s marketing is done face-toface, giving franchisees the opportunity to captivate and enlist many schools at once. For example, once a franchisee signs up one school they can invite parents and teachers from surrounding schools to watch the event in action. “When teachers and parents see the program in person they fall in love with it. It goes viral,” Barnhart explains. Since PTA committees are often looking for new fundraisers, especially ones that promote healthy living, a positive message, and are hassle free, Apex fills this niche. “We do all the work for the schools, and we don’t have to nickel and dime the parents,” Barnhart says. “Our program is able to raise enough money so that schools don’t have to do a bunch of fundraisers throughout the year.”

The Apex Run Fun difference is not only about teaching kids to be leaders, but it leads by example. As a testament to this, for students who raise pledges of more than $10 per lap, Apex makes a donation on the student’s behalf to the Special Olympics. “We don’t just talk the talk, we walk the walk. We show students that it’s important to be a good leader and being a good leader means helping their local communities.” The focus on

local communities is what makes Apex’s business model so successful. While competing fundraising companies fly their teams around the country to service schools, Apex’s franchise model allows for local business people to own territories in communities they care about, and hire employees who are also passionate about their neighborhoods and local schools.

Through Apex Fun Run, schools are able to raise funds otherwise unobtainable, while educating their students on how to be leaders and live well. Coined a “philanthropreneurship company” (combining “philanthropy” and “entrepreneurship,”) by the Apex team, in its first year franchising the company serviced over 150 schools. “When people find out about us they get excited. Apex offers the opportunity to own a business where you can make a living, and make a difference in the world,” Barnhart says.

“Our franchisees have great pride in what they do, and at the end of the day they know they’re making a difference in kids’ lives.”

For more information: Website: www.apexfunrun.com/ franchising-with-apex or www.apexfranchise.com Phone: 855-RUN-APEX or 855-786-2739

HOME SERVICES Page 35

www.franchisingusamagazine.com

Home Services

Franchising 101

Franchising USA

h o me serv ices People who lead busy lives don’t always have the time to do things around their home like cleaning, gardening, looking after their pets or cleaning their pools.

And that’s where someone with a little entrepreneurial spirit can step in and make some serious money with a franchise in the home services industry.

Why Choose the Home Services Industry?

While people can accumulate possessions or money relatively easily, accumulating more time is a bigger challenge. One way for people to get more time for themselves is by not spending it on household tasks.

And people who have money are usually quite willing to pay someone to take care of a household task for

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“The home services franchising industry has a bevy of varied opportunities to choose from to fit whatever interests you may have.”

the Commercial and Residential Services category would grow by 1.6 percent over the previous year, employing over 356,000 people and creating $53.2 billion in revenue.

Along with the Business Services category, the Commercial and Residential Services category ranked as the top sector in both franchise employment growth and growth of the number of establishments in 2013.

Variety

them so they can spend that time doing something else.

Someone who can afford to have the carpets cleaned for them is more likely to do that than bother renting the equipment and cleaning their carpets themselves.

The same goes for general cleaning, pool cleaning, doing home repairs, pet grooming, etc.

And, speaking of limited time, as the population ages, there is also a growing demand for senior home care. Many people want to stay in their homes as they age and this area is ripe for people to get into with a franchise.

At the beginning of 2013, the International Franchise Association’s Franchise Business Economic Outlook estimated that

The home services franchising industry has a bevy of varied opportunities to choose from to fit whatever interests you may have. These include: • Construction and Building • Delivery

• Handyman

• Home Care Assistance • Home Cleaning

• Home Improvement • Home Inspection • Home Moving • Junk Removal • Lawn Care

• Maintenance

• Pet Home Services • Plumbing

• Repair and Painting • Restoration • Security

You may find it suits your neighborhood and area to have more of a niche franchise and those are plentiful, as well.

You can find franchises that specialize in eliminating mosquitoes and other pests (including deer) from yards, cleaning barbecues, mobile pet grooming, window tinting and many others.

Money Buying a franchise wouldn’t be worth it if it didn’t generate cold, hard cash and home services franchises do just that. In an August 2012 interview with Molly Maids CEO Craig Donaldson, he reported that 30 percent of the company’s 450 franchise owners generate over one million dollars in annual sales and all together, they employ about 7,000 people in the United States.

According to the Franchising Business Review (FBR), a research firm that specializes in franchising, in 2011 the average gross sales for a CertaPro Painters Business was $700,323. That was up from $643,577 in 2010 and $549,215 in 2009.

And franchising website franchisehelp. com says the landscaping franchise industry makes an annual revenue of about $50 billion; the moving franchise industry, which is a low cost industry to join, generates about $15 billion annually; while painting company franchises generate $30 billion. The $11 billion pest control

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h o me serv ices out by the FBR, are based on surveys done with thousands of franchisees across dozens of different industries.

In the category of Top Franchises by Investment Level, 11 of the top 20 were home services. Out of the top 20 franchises with 250+ locations, home services were represented six times.

These franchises included lawn care maintanence, senior home care, painting, carpet cleaning franchises and other home services.

Getting Started

franchise industry has been steadily increasing and grew by nearly six percent last year.

The FBR also released a report in 2012 that showed the top home care aid franchises grossed one million dollars or more, with gross margins at 30 percent to 40 percent. And because the number of seniors continues to increase, that particular sector is relatively recession proof.

Satisfaction Home services franchises were well represented in the 2013 Franchisee Satisfaction Awards. These awards, given

Franchising USA

be successful, they pass that knowledge onto you. The knowledge and experience they pass on includes operating and management systems developed by the franchise company, plus uniform operational standards and procedures.

Brand Recognition: Branding is probably the most important component of marketing, and with franchising, you get an already established brand name in a crowded market.

You can find home services franchising opportunities at a number of places online, including:

While it’s not easy, there are good reasons to invest in a franchise.

• franchisingusamagazine.com

Minimization of Risk: While the failure rate for new businesses hovers around 90 percent within the first five years of operation, the success rate of franchises is about that same number.

• entrepreneur.com

Established Business Product or Service: The success rate of franchises versus standalone businesses is easy to explain, as the franchising business model allows you to adopt a proven product and brand name that people are familiar with already, saving you from having to do the difficult initial push of breaking into the market.

Proven Business Model: Franchise businesses have gotten to where they are because of solid business models. And because they want their franchisees to

• azfranchising.com • franchisebusinessreview.com • franchisedirect.com • franchisehelp.com • franchising.com All these websites offer free information about the various franchising opportunities available. You can search for franchising opportunities by industry, brand name, investment commitment, or region and read about what franchising option would be best for you.

The home of the International Franchising Association online, franchise.org, also has a plethora of information on the subject and the association’s USA branch site, ifausa.org can help you get yourself set up.

“In the category of Top Franchises by Investment Level, 11 of the top 20 were home services. Out of the top 20 franchises with 250+ locations, home services were represented six times.” what processes do you have in place to come to a fair solution that works for both of us? Can you give me a couple of recent examples of issues with franchisees and how they were resolved?

What to Ask a Franchisor While there are some basic questions you should ask a franchisor when looking to purchase a franchise, the FBR suggests going much more in depth with your questions.

Some of the basics are: • How many years has the franchisor been operating?

• How many franchisees does the franchisor have?

• Can the franchisor provide a list of all franchisees?

• How does the franchisor choose its franchisees?

• How much is the initial franchise fee?

• What are the franchisor’s plans for future development?

• What is the competition for the product?

• What kind of support does the franchisor provide to franchisees?

And the real probing questions the FBA suggests asking are: • What characteristics make your topperforming franchisees successful and what is it specifically about my background that you think makes me a good fit for your system?

• Even in the best business partnerships, disagreements and conflicts happen. If I am a franchisee and I have a problem,

• I know that for at least the first few years I will be very dependent on you and your staff to help me succeed as a franchisee, and I think your fees are very reasonable given the support I will need. But in the future, when I am more self-supporting, where will I see the value from the fees that I am paying you?

• What trends do you see in this industry that could have a negative impact on the business over the next decade, and what are you doing strategically to overcome these challenges?

• Do you have a franchisee satisfaction report that is publicly available?

These highly specific questions will ensure that the franchisor actually does want to see you succeed and not just sell you a franchise and leave you to your own devices.

Finding Financing After you’ve found a franchising opportunity that suits you, you’ll need financing to get it up and running. Your options include: Self-Direct 401k A Self-Directed 401K program can allow you to capitalize your new business with no taxes or penalties if you have money in a 401K, IRA, profit-sharing, or annuity plan. You can use the money for franchise fees, equipment, working capital, or other expenses.

SBA Loans Many franchise owners utilize Small Business Administration loan programs.

Conventional Lending Conventional financing also has its benefits, specifically combining equipment leasing with the ability to also include hard costs like leasehold improvements in a single loan.

Equipment Leasing Leasing provides fixed rate financing with specialty terms to accommodate your unique cash management needs.

Once you’ve found a franchisor that you feel is a good match for you and you’ve worked out the necessary details, there’s nothing left to do but get down to the hard work. But if you’re passionate about what you do (and being passionate about making money doesn’t hurt, either) you’ll have a successful franchise soon enough.

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f ra nchisor in depth

Ser v ice B ra nds

Service Br ands E ye Grow th as Demand for Home Services Incre ases Having franchise brands that offer in-demand home services is one significant element of Service Brands’ success story, the parent company of Molly Maid, Mr. Handyman and ProTect Painters.

“Our key differentiators are the marketing

The support system behind each of the brands, however, is the main reason the company has grown to nearly 700 locations throughout the United States.

housecleaning in the United States, which

systems, software and scheduling, brand

Molly Maid – Wide Open for Business After 30 Years

factor that comes from having employees

McKinnon says Molly Maid is an easy business to explain.

recognition, vehicles, uniforms, the trust who are bonded and insured and our

commitment to our communities through the Molly Maid Ms. Molly Foundation

and the Mr. Handyman National Day of

Service,” said Dave McKinnon, co-founder of Service Brands.

This year, Molly Maid will celebrate 30 years of providing professional

led Mr. Handyman and ProTect Painters to join the Service Brands International umbrella of franchises.

“We clean houses. And, everyone wants to have their house cleaned by someone else,” he says. “Even in times of a recession, when people’s finances are squeezed a bit, they’re not going to cut their maid service first.”

With a milestone anniversary approaching, the flagship company conducted a fullscale territory analysis in 2012 to identify key markets for future expansion.

“There has been a misconception that Molly Maid is out of good markets to develop, and that is simply not true,” Meg Roberts, President of Molly Maid says.

“In fact, we have over 200, pre-crafted territories in underserved and highdemand markets such as Boston, Chicago, Madison, WI, Portland, OR, and Buffalo, N.Y.” New and existing franchise owners contributed to 2013’s development through new openings, re-sales and expansions.

The company’s progressive consumer marketing has also led to positive growth, and a priority throughout the company is on continuing to increase customer loyalty.

“The first Molly Maid franchise is in Ann Arbor, MI, less than a mile from our home office,” Roberts says. “That business will reach the 30-year mark in July, and they still service their first customer and have their first employee. We’re going to share

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“Our success has come from building a connection with customers.”

great customer retention stories at our annual convention and throughout the year to emphasize the importance of personal relationships in this business.”

Also in the spirit of sharing, Molly Maid has created a new mentoring group called Scale Optimize Apply Rise or SOAR for short, which includes 38 owners who have committed to two years of learning and applying best practices into their businesses. Formal curriculum, accountability calls and visits are guiding participants to apply the best practices used by the top 25 percent of the Molly Maid system, which average $1.2 million in annual sales.

Molly Maid of Orange Park owners Tom and Terri Rue became members of the Million Dollar Circle late last year, and they won Molly Maid’s Shining Star Award in 2012 for increasing sales by 24 percent.

“Our success has come from building a connection with customers,” Tom Rue says. “We have a team that cleans for a family who has two little boys, and those kids have drawn pictures for their homeservice professionals and have even given

them their school photos.”

Tom and Terri Rue both have accounting and finance backgrounds, which have helped them monitor metrics, and their management and sales experience has been the cornerstone of their operation.

“We love that Molly Maid is a repeattype business and we have no interest in working nights or weekends like those in other franchises have to do,” Rue says.

“The recent growth of the housing market has increased consumers’ demand for home services and improvements,” Alex Roberts, President of Mr. Handyman says. “We are increasing our franchise expansion efforts to keep up with the demand proven through our year-over-year sales growth.”

Mr. Handyman – Meeting Increased Demand and Expanding Strategic Alliances

The success of current franchise owners nationwide has triggered the need to hire more than 300 professional technicians to keep up with the uptick in demand.

Mr. Handyman’s website was quickly enhanced to promote the employment opportunities available.

Consumer confidence is positive and proven with investments in residential and commercial repair, maintenance, improvement and remodeling projects.

Mr. Handyman has 200 locations in North America and finished 2013 more than 13 percent over 2012’s sales results.

Roberts’ support team receives high marks for their applicable takeaways from conventions and other meetings, as well as their ability to deliver leads through interactive marketing and strategic alliances from the franchise system. Many Mr. Handyman franchisees are boosting

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f ra nchisor in depth

Ser v ice B ra nds

“With $40 billion spent annually on painting, the team at ProTect Painters truly understands professional service is a necessity.”

“One gentleman wrote to me after visiting and said Service Brands and ProTect Painters was hands down the best he visited,” Chris Ring, President of ProTect Painters says. “He pointed out how the support team made a lasting impression with their positive attitudes, description of support the franchise owners receive, and Service Brands CEO Craig Donaldson’s future vision for the company.”

their bottom lines by working with local businesses including Home Modification Solutions, Title Boxing Club, Cheesecake Factory, Stor-All and many more. Top commercial sales producing owners are now highlighted during quarterly, system-wide President’s Calls, as owners are seeing significant growth through this revenue stream.

Skip Wyatt and Lorenzo Wyatt, owners of Mr. Handyman of Upper Fairfield County, were named Franchisees of the Year for 2012, in addition to other awards for excellent customer loyalty, highest percentage growth, highest sales and earning a spot on the company’s Incentive Trip last April. The Wyatt business has lofty goals for 2014 as well, as they invest in marketing and staff to provide end-toend remodeling services.

and sustainable growth. They operate their franchise by following the system’s model precisely with quality work and personable service. John takes time every day to visit customers, so they recognize him as a local small business owner, and not just a representative from a large company.

“Customers are impressed that I take time to visit and to make sure the job is running smoothly. I also assure them I am available to communicate with them directly if they are not completely satisfied with the quality of work,” John Van Orden says.

“I’m happy to say we’ve had double-digit growth every year since we’ve opened.”

ProTect Painters Aims to Double System Size in 2014

After 30 years with executive-level positions with IBM, Skip Wyatt said his job paid well, but it came to a point where he realized he wouldn’t be the one running that company. He wanted to start a business, get involved with hiring a team, nurture and grow it. The father-and-son team exceeded the $5 million mark for 2013 while maintaining an 80 percent Net Promoter Score.

The newest brand in the family is a fullservice residential and light-commercial painting company with 45 units.

Aggressive growth plans include doubling the system’s presence this year as well as improving sales for new franchisees and revenue and profits for existing franchise partners. Repeat business is also achieved through consistently providing quality customer service, and the system averages 9.4 out of 10 using Listen360 feedback surveys.

John and Laura Van Orden own Mr. Handyman of the Woodlands and they are achieving their goals of steady, profitable

Candidates attend Meet the Team Day at the home office, and often talk highly about their experience.

Franchising USA

With $40 billion spent annually on painting, the team at ProTect Painters truly understands professional service is a necessity. “Look around the room you’re sitting in now and almost everything has a coating on it – from trim, to walls, doors and ceilings,” Ring says.

John Demetriou, owner of ProTect Painters of Ann Arbor, came from the automotive industry in the Detroit area before becoming a franchise owner two years ago. “When prospective owners call and ask me about ProTect Painters, I tell them if you feel confident in your skills, want to open your own business, and have the potential for unlimited income depending on the time and effort you put into it, I believe it would be an exceptional opportunity. It’s not a business where you have to know how to paint; you have to manage people and finances,” he says.

Giving Back and Making a Difference In 2013, each of Service Brands franchises increased their VetFran and MinorityFran incentives to help qualified candidates achieve the American Dream. A $6,000 discount off the initial fee is now available to military veterans and minorities can receive a $5,000 discount. With hundreds of territories still available and proven models for success, Service Brands has franchise opportunities in the growing home-services category.

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

Page 43

DON’T MISS OUR NEXT ISSUE!

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

Need help making the big decisions?

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

Find out more about Business Services in the February edition of Franchising USA. For interactive editorial and advertising solutions, please contact Jenn Dean, Jenn@cgbpublishing.com.

250-590-7116 Franchising USA

ex per t advice

Jason Power, Senior Attorney, Shelton & Power

Franchise vs. Business

The Debate O Entrepreneur What is the difference between a franchise and a business opportunity?

However, the people selling each of these

could be better for your particular skills or

good explanation of why their business

When asked the question what is a

This is a question that is on the mind of

When you are looking into starting your

pretty much every person who attends a franchise or business opportunity trade show looking for his or her new career path.

Franchising USA

types of businesses never really give a

qualifies as a business opportunity, biz op for short, or a franchise.

own business through a franchise or

business opportunity, you must know the differences between the two because the

differences can show you how one model

mind set in business.

franchise, most people can give examples of franchises they see daily, but do not

know the specific criteria that make up a

franchise. At its most basic, a franchise is a business model where you, the franchisee, will pay a fee to the franchisor for the

opportunity to be trained by them on how

s Opportunity: “With a franchise, you will have your fellow franchisees to look to and will be able to reach out to the franchisor for assistance.” will have the authority to control much of your operation and will provide assistance to you both before you open and during your operation of the business, and (iii) you are required to make a payment in exchange for your right to operate the business and receive the support from the franchisor.

n E very eur’s Mind to run a business. You will operate that

business using that franchisor’s business

trade name and logo while understanding that the franchisor will have control over certain aspects of how your business is

operated. So, you will encounter (i) use of the franchisor’s trademark, which is their

name and/or logo in selling the products or services of that brand, (ii) the franchisor

A business opportunity on the other hand is harder to define specifically as different states can define the term using a variety of factors. Basically, if you buy a business opportunity, you are purchasing a business in a box which allows you to run the business how you want to selling or offering, in whole or in part, the products of the seller of the business opportunity. Anyone who has researched business opportunities can tell you the examples they have encountered, but one that has been prevalent for many years are vending machines. There are business opportunities available where you, the purchaser, will buy the right to a certain number of vending machines along with a general area of distribution to sell the products. You typically must purchase the products from the business opportunity seller, which is where they make their money, but you get little ongoing support, if any, and you are ultimately on your own with little to no ongoing relationship with the seller.

When it comes to your protection, as the buyer, of either type of business, you need to know that certain laws exist to protect you at both the federal and state levels. Because both types of businesses have a history of less than honorable

Jason Power

dealings, different states and the federal governments have enacted laws and now require legal disclosures for each type of offering. I do not have the space within this article to discuss the specific legal standards and disclosure requirements of each type of business offering, but whether you buy a business opportunity or a franchise, you should be very careful to read through all of the information you receive and consult with trusted advisors before signing on the dotted line.

So, now that you understand the differences between franchises and business opportunities, which one is best for you?

This is a question that cannot be answered by anyone but you. If you are entrepreneurial and want to run your business your way without input from anyone higher up the chain, then a business opportunity might be the way to

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ex per t advice

Jason Power, Senior Attorney, Shelton & Power

go. With a business opportunity, you will be able to run your business as you see fit, from pricing, to the hours of operation, to the varying product lines you carry. On the other side, with a business opportunity, you will be on your own most of the time and may find that the same business opportunity seller has sold to someone who competes with you locally.

However, if you are more dependent on support systems and the desire to be part of a team, then choosing a franchise might be the better option. With a franchise, you will have your fellow franchisees to look to and will be able to reach out to the franchisor for assistance, yet still have some freedom to make business decisions such as pricing and hiring and firing, to name a few. A drawback to franchising versus a business opportunity is the freedom. If you are part of a franchise system then you are expected, in many systems, to meet minimum sales quotas and order certain products only from specified vendors, which can be more costly than if you had the opportunity to buy locally or from a vendor of your choosing.

One final question that comes up is where can I find a franchise or business opportunity to buy? This question is the

Franchising USA

“The key to either type of business is to have a strong team, whether it be your employees and family in a business opportunity, or the franchisor and your co-franchisees in a franchise system.� easiest of all. Along with websites such as the International Franchise Association and BusinessOpportunity.com, and publications like this one, you can find both franchises and business opportunities at trade shows. Throughout the year there are multiple trade shows that showcase both types of business. If you are looking exclusively for franchises, you can attend the Franchise Expo South in Houston, the International Franchise Expo in New York or the West Coast Franchise Expo in Anaheim. If a business opportunity is your choice, then there is a trade show group which hosts several regional shows throughout the year called the Franchise & Business Opportunity Expos where you can find selections of both franchises and business opportunities.

Whichever method of business ownership you look to, you will have benefits and drawbacks. There are no assurances of success in either model. The key to either type of business is to have a strong team, whether it be your employees and family in a business opportunity, or the franchisor and your co-franchisees in a

franchise system. When you find the right business, look before you leap. Take the time to read through all of the information.

Perform your due diligence and research the particular business online, call other owners of the business to get their thoughts and opinions, and talk with your advisors to get an outside perspective on the business. Once you have made your decisions, take the next step knowing that you have made the right decision for you.

Jason Power has been helping entrepreneurs review and negotiate franchise purchases since 2009. Jason is a regular speaker at the International Franchise Expo, West Coast Franchise Expo, Franchise Expo South and various other franchise expos where he gives tips on how to analyze and negotiate a franchise purchase. Jason is a senior attorney with Shelton & Power franchise law firm.

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

Email: Jason@SheltonPower.com Phone: 866-993-7262

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Social Media Business Boosters seeks partner for US expansion.

Social Media is a global phenomenon literally changing the world.

AREA DEVELOPER OPPORTUNITY THIS IS AN UNPRECEDENTED WINDOW OF OPPORTUNITY!

In a short period of time we have become the world’s largest Social Media Consulting Franchise!

Within one year we have opened 30 franchises in Australia, a country 7.5% the size of the USA. We are seeking a qualified Partner for the American market. As a Partner you will actively participate in all revenue derived from franchisees in the USA. Businesses are struggling to gain social media exposure but many lack the resources, knowledge and time to accomplish the task.

Social Media Consulting is a fragmented industry with no recognizable national brand and that is what makes this a very unique opportunity.

Qualified Partner will be required to make a minimum investment of $500,000 in order to secure exclusive partnership rights.

To explore how you can be part of this financial growth opportunity please contact our US representative: Steven Ruttenberg at 360-387-1101 or stevenruttenberg@gmail.com

Our franchisees currently help develop a social presence for: t 4."-- .&%*6. "/% -"3(& #64*/&44&4 t -0$"- (07&3/.&/5 t $-6#4 "/% "440$*"5*0/4 t 410354 45"34 t 1016-"3 $&-&#3*5*&4 t ,&: &9&$65*7&4 t &7&/5 $003%*/"5034 t #64*/&44 130'&44*0/"-4 t "/% 5)& -*45 (0&4 0/ "/% 0/

Our franchisees benefit from the following: t 5IFZ DBO XPSL GSPN BOZXIFSF t -FBTFE PGmDF TQBDF JT OPU OFFEFE t 5IFZ IBWF WFSZ MPX PWFSIFBE t /P TUPDL JT SFRVJSFE t 5IFZ IBWF BO VODFBTJOH BOE HSPXJOH NBSLFU demand for their services t 5IFZ QSPmU GSPN NVMUJQMF SFWFOVF TUSFBNT t 5IFZ BSF QSPWJEFE XJUI POMJOF SFTPVSDFT BOE MJWF support Franchising USA

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have your say

Sheetal Duggal, Multi-Unit Franchisee, Sears Hometown and Outlet Stores

How to Set Yourself up for

Multi-Unit Growth

Multi-unit franchise ownership is an evergrowing trend in the franchise industry with an increased number of owners building their portfolio each year.

Of all the multi-unit franchise owners, 87.7 percent own all their franchises under the same brand, according to a study by

Franchising USA

“A strong team is important to prevent you from being bogged down by any problems when you should be focusing on key factors for multi-unit build out.”

FranDATA. Many multi-unit franchisees

For a multi-unit owner to build a

companies is an effective and streamlined

it’s much more effective to start small

agree that keeping to a few franchise

way to grow your business. Although

franchises generally have a strong growth model, there are many factors to consider

when joining a franchise system to ensure you set yourself up for successful growth and avoid common pitfalls many multiunit franchise owners face.

successful portfolio of franchise locations, then build out with multiple locations. You don’t have to buy all the available units

in your market area just because they’re open. Starting too large, initially, could

cause a business to completely derail and ultimately fail. When you open multiple

locations at once, numbers grow quickly

h and Success – a seemingly good problem to have.

However, with this extreme growth, it’s difficult to identify the variables that work well for the business and see what really drives each store’s profitability.

A key piece of advice that I used when growing my franchises was to start with one location and take the first six to 12 months to learn everything about the business and see exactly what works in the specific industry. After the initial phase, it’s much easier to extrapolate the success variables to new units. The systematic approach allows for a slow, steady increase rather than working backwards to figure out why multiple locations are successful.

The due diligence process while seeking the right franchise investment can be frustrating and lengthy until you find that perfect match. There are multiple factors to consider that can make it easier to evaluate your decisions with each franchise opportunity. The overall goal of this process is to find a franchise where you feel comfortable with the necessary support and resources to grow your business.

Here are some key factors to evaluate during this due diligence process: • Franchise Support – Ensure the franchisor provides an established support system for franchisees, whether it is providing the necessary resources, or simply a strong, organized system.

Any support that is in place should help franchisees succeed and grow; nothing that would prove to be a roadblock for success.

• Franchise Development – Take a look at overall franchise growth, including

“Many multi-unit franchisees agree that keeping to a few franchise companies is an effective and streamlined way to grow your business.”

the number of locations opened in the past couple years and the markets where these stores are located. Discuss the company’s future franchise development plans, what markets they’re looking to expand in further and what numbers they would like to see in terms of franchise locations over the next year.

• Business Model – Make sure the model coincides with your business values and that it has a proven track record of success.

• Longevity – Choose a business that has proven longevity, not just a trend that risks dying out in the near future.

In addition to selecting an appropriate franchise, the need in the marketplace should be considered before investing.

If there’s no need, no one will shop for your products or use your service. I chose to invest in Sears Hometown and Outlet Stores with my first Sears Appliance & Hardware Store due mainly, in part, to the economic conditions of the housing market. During the housing downturn, no one could afford to buy a new home.

Instead, they put money into updating their homes with new appliances to give it a fresh, new feel. In the same token, since the market has experienced a

Franchising USA

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have your say

Sheetal Duggal, Multi-Unit Franchisee, Sears Hometown and Outlet Stores

“Any support that is in place should help franchisees succeed and grow; nothing that would prove to be a roadblock for success.” recent upswing, consumers are looking to improve and update their homes in any way they can to sell at a higher value. Whether the market is up or down, people will always invest in their homes in some fashion. To me, providing a store that offers homeowners appliances and hardware supplies made the most sense when I invested and still makes sense today.

To identify a market need susceptible for multi-unit growth, ask yourself the following questions: • Industry – What industry will I be a part of, and what outside factors could affect that industry (e.g. economic conditions)?

• Economic Conditions – What is the state of the economy locally and nationally, and is the future economic outlook forecast positive or negative?

• Consumer Need – Do consumers in the area want or need this product or service?

• Area Competition – Is the market already flooded with this brand, or similar competitors?

• Barriers – Are there any barriers of entry to break into this market, cultural or technological?

After selecting the franchise investment and your target market, the next step is to build the right team. As a franchise owner, it’s easy to get wrapped up in day-to-day operations, taking away from your main duty to ensure proper growth. An effective team includes operational managers, store managers and employees that you trust with running your business. A strong team is important to prevent you from being bogged down by any problems when you should be focusing on key factors for multi-unit build out. Your sights should be

Franchising USA

set on high-level evaluations of growth and finding the variables that work for your business to be profitable, whereas your employees are in charge of making sure the store runs properly day-in and day-out.

Following these steps in the process of setting up your franchise will allow you to be successful in setting up multiple locations.

Sheetal Duggal is a franchise owner of two Sears Appliance & Hardware Stores in Long Island, which is part of Sears Hometown and Outlet Stores. He

has a history in investments and hedge fund management, which helped him to perform his own due diligence process prior to investing in a franchise. Sheetal plans to expand his business even further in markets Sears Hometown and Outlet Stores have targeted as areas of growth for the business as a whole.

For more information: Website: www.ownasearsstore.com/ retail-franchise-why-sears.php Email: sheetal.duggal@gmail.com Phone: 212-603-9607

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New Franchise Opportunity from IFG!

• Leverage your capital – use OPM (other people’s money) • We handle the paperwork • Earn commissions on ‘out of the box’ transactions

• Your Income potential • Your Capital • Your Work Schedule

IFG 50/50 franchisees provide short-term working capital for small businesses by purchasing current, quality invoices at a discount.

For more information: Tel: 800-387-0860 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com Franchising USA

focus

The Interface Financial Group

New Year, New Horiz This year, 2014, is not predicted to be a significantly better year for small businesses. They will continue to flourish but, in many cases, not to their full potential.

There are many aspects of a small business that hamper their growth. When you analyze a hundred enterprises however, you invariably find one or two issues that overshadow the others.

The number one issue that seems to continually stifle new business growth is a secure and regular cash flow. ‘Cash is King’ is a well-known expression - often said in passing - but in reality nothing could be further from the truth. Lack of a well-defined and regular cash flow has been the downfall of thousands of businesses. On the other hand a healthy,

Franchising USA

well-organized cash flow has proven to be the central tenet that has created growth and profit for many entrepreneurs.

Talking about having a well-organized and predictable cash flow is often easier that actually achieving it. Can a small business owner really organize their cash flow such that they know who will pay and, more importantly, when? It is the ‘when’ factor that leaves so many small businesses stranded and starved for cash.

Sales of goods and services have evolved on a ‘net 30-day’ basis. Simply put, this means that the buyer has 30-days’ grace before they write the check and pay the invoice. If you have a good memory you may remember when that 30-day rule was the norm. Today unfortunately, it is often stretched to the breaking point for many suppliers.

Entrepreneurs need to investigate programs that allow them to deliver their goods or services and then literally within days, not weeks or even months, get paid.

The program is invoice discounting. This program has been available for many years in the financial service marketplace, but has unfortunately only been available to companies of considerable substance and longevity.

The Interface Finance Group, through their innovative IFG 50/50 franchise offering, has now brought the service to the small business market sector. Interface engages with their clients to buy specific invoices at a small discount that effectively turns that sale into a ‘cash on delivery’ approach.

By delivering this service through a franchise network, Interface has solved the problems often associated with any financial services facility, i.e. time to get started. Interface can turn a request for assistance in actual funding usually in three to four business days. They have found out how to get cash into the hands of their clients quickly and cost-effectively to enable small business growth.

zons, New Brand “Interface is a leading supplier of invoice discounting and spot factoring services to the small business marketplace in eight countries.” much geared to medium and large-scale operations. As with so many financial services, nobody had found a way to make it available to the small business entrepreneurs of this world on a costeffective basis.

The Interface facility offers an innovative approach to facilitate small business growth.

How Do You Deliver a Financial Service Through a Franchise?

We are all familiar with franchising.

When you ask the question, ‘Do you know of a franchise?’ the answer will almost certainly name a fast food outlet dominated by golden arches. Franchising certainly grew up in the food and fast food area, but much has happened since those days: the automotive support marketplace has seen a considerable boost with the franchise approach, and now franchising moves into areas that were traditionally corporate operations.

One such area is that of financial services.

We see an increasing number of financial services that can be and are delivered through a franchising format. One seemingly unlikely operation that has been franchised is that of invoice discounting.

Until recent times this was a service very

can be achieved in the minimum time frame possible.

Invoice discounting provides a valuable lifeline to many small business owners who are anxious to smooth out the ups and downs of their cash flow. By taking invoices as they are produced and discounting them, they achieve a cash flow geared to sales rather than collections.

For franchisees, they are in control of the process as they work on a local basis alongside their clients, creating a win-win situation.

Franchising played a major part in the growth strategy for The Interface Financial Group. Interface is a leading supplier of invoice discounting and spot factoring services to the small business marketplace in eight countries. Before embarking on a franchise approach some twenty years ago, Interface was indeed a corporate invoice discounter. All operations were conducted on a corporate in-house basis for almost twenty years.

In searching for an expansion medium, Interface decided to review franchising and ultimately found that it was a good fit.

Interface franchisees find that they can effectively run their franchise operation from a home-based office and have no need for staff or other costly overhead expenses. Interface, as a franchise destination, has proved very popular with downsized or right-sized corporate executives who are ready to enter the world of entrepreneurism and selfemployment. They gain the ability to help business owners grow their business, while growing their own franchise at the same time.

With the ability to franchise, it has enabled Interface to become not only a national, but an international provider with offices in North America, Europe, Australia, and New Zealand. Why franchising works, and works well, for Interface is the fact that a common system has been taken from the corporate office and moved successfully into the local area of the franchisee. In making this move, there has been no change in the integrity of the franchise and the service offered to clients. In fact, if anything, the service has greatly improved.

This knowledge shift also incorporates the decision-making process, so with a decision maker on hand to meet locally with prospective clients the entire process of approval, documentation and funding

Contact: David Banfield Website: www.interfacefinancial.com Email: ifg@interfacefinancial.com Phone: 1-800-387-0860

For more information:

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MAKE YOUR NEXT CAREER MOVE . . .

A BUSINESS OF YOUR OWN!

Maybe it's time to take control of your future.

One way to accomplish that goal is to own a franchise.

Let us help you – we provide a “Free” franchise matching service for Veterans.

No Cost – No Obliga�on

To get started, visit our website: VeteranFranchiseCenters.com

We’ve helped 1000’s of people fund their businesses. Why not you too?

What’s holding you back from starting your own business? If your answer is funding, we invite you to join our growing family of happy, successful entrepreneurs who turned their retirement investments into thriving businesses. Talk to one of our Senior Consultants today and let us show you how easy it is to start your business debt free and cash rich!

Funding is everywhere... trust is here!

Try our Online Funding Calculator to see how much you qualify for.

Why wait? Contact us to get stated today! www.tenetfinancialgroup.com (888) 901-3335 ext. 9

Scan with phone for more info.

IFA Applauds Bipartisan Legislation to Boost Franchise Small Business Ownership Opportunities for Veterans The International Franchise Association recently applauded Rep. Bill Flores (R-Texas) for introducing bipartisan legislation that would help qualified veterans invest in their own franchise small business.

The Veterans Entrepreneurs Act of 2013 (HR3725) would create a tax credit for veterans and their spouses who purchase a franchise up to 25 percent of the total initial franchise fee, capped at $100,000.

The bill is co-sponsored by Rep. Mark Takano (D-CA), Rep. Paul Cook (D-CA), Rep. Mike Coffman (R-CO), Rep. Jon Runyan (R-NJ), Rep. Dina Titus (D-NV), Rep. Richard Hanna (R-NY) and Rep. Brad Schneider (D-Ill).

“The Veterans Entrepreneurs Act of 2013 will provide expanded opportunities for America’s service men and women to achieve their dream of small business ownership through franchising,” said IFA President & CEO Steve Caldeira.

“We encourage members of Congress to advance this bill to improve opportunities for veterans to go into business for themselves, but not by themselves, while also helping to improve the U.S. economic recovery. Equally important, veterans tend to hire veterans” “Investing in veterans’ successes will not only strengthen our veterans and their families, but also our economy. The tax credit established in the Veterans Entrepreneurs Act of 2013 will assist in curbing employment obstacles and allow our nation’s heroes to become entrepreneurs,” stated Congressman Bill Flores. “We must continue to promote

private-sector efforts to hire veterans as well as look for innovative ways to empower veterans to be entrepreneurs and small business owners. The more veterans we have acquiring and creating jobs, the more our economy will continue to grow benefiting both our veterans and our nation.”

“The Veterans Entrepreneurs Act of 2013 can help our veterans get into business ownership faster with less capital outlay,” said Mary Thompson, former Captain of the U.S. Marine Corps and president of Mr. Rooter Plumbing in Waco, Texas.

“It’s important we not forget the sacrifices our service members have made for our country and offer them the best opportunities this nation has to offer, and my appreciation goes out to Congressman Flores and his team for his good work on behalf of our veterans.”

Last month during a Veterans Affairs subcommittee hearing chaired by Rep. Flores at Baylor University, Thompson, having started her first franchise business after retirement from the Marine Corps, urged Congress to create a 50 percent tax credit off franchise fees for veterans.

“The franchise industry has a long history of supporting efforts to increase franchise small business ownership opportunities for veterans and, together with Rep. Flores and the bill’s co-sponsors, we can enhance efforts to provide new and well-deserved

career opportunities to our brave service men and women,” Caldeira said.

IFA’s VetFran strategic initiative, founded in 1991, includes over 600 IFA member companies offering financial incentives, training and mentoring to veterans interested in small business ownership and/or a career path in franchising. In 2011, IFA made the largest private-sector veteran hiring commitment as part of the White House Joining Forces program, led

by First Lady Michelle Obama and Dr. Jill Biden. As part of the campaign, 151,557 veterans, military spouses and wounded warriors have entered franchising since 2011, including 5,192 as franchise business owners.

For more information: Website: www.franchise.org/vetfran.aspx

Franchising USA

V E T ER A NS IN FR A NCHISING

what’s new!

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Vetera ns i n Fra nch isi ng

Martha O’Gorman, Chief Marketing Officer, Liberty Tax Service

How IFA’s VetFran Complements the Franchise Model

The Face of Today’s Veterans “The franchise system offers the chance for veterans to come away from combat using the very skills they learned while fighting.”

The report further states that, of these veterans, the unemployment rate was 9.9 percent in 2012.

Martha O’Gorman

Last year, 21.2 million men and women in the civilian, non-institutional population ages 18 and over were veterans, according to the Bureau of Labor Statistic’s 2013 “Employment Situation of Veterans Summary.”

Franchising USA

Today’s veterans are facing an uncertain job market as they transition from their rigid military life to a self-serving civilian life. The hurdles they encounter are not ordinary job-seeker issues either. Some claim that sitting down for an interview is more frightening for them than getting shot at during combat. Many stumble with simply building a resume while others struggle with starting a new job without a manual to explain in great detail what tasks they are to perform.

The entire game plan changes when a soldier leaves the military. Employers neither ask how fast you can run with a 100-pound backpack nor do they care.

Yet for a former soldier, this important, personal skill decided a mission’s outcome – life or death – in some cases.

About Face, Forward March How can businesses help these soldiers change their expectations of themselves?

How can our nation assist them in an about-face movement where they are no longer required to “support and defend the Constitution of the United States against all enemies, foreign and domestic” and now must begin to support their own freedom and family? The franchise system offers the chance for veterans to come away from combat using the very skills they learned while fighting.

Many veterans possess skills that are easily transferable to the franchise model.

They learned leadership skills while executing missions that required specific orders and quick thinking. Their problemsolving skills and ability to follow through on a task would benefit any franchise.

While they respect rank, they are also excellent team players. Once taught a specific system, former soldiers follow

through to lead the franchise to success.

Veterans who climbed the ranks in the military appreciate being their own boss through a franchise system. The idea of franchisors joining forces with veterans has become an alliance that benefits both parties.

It’s About Duty There is a movement under way by large, successful companies joining forces and stepping up to do their part in assisting our nation’s veterans to reduce their unemployment rate. Some have claimed it’s just a fad or a politically correct stance companies take, similar to “going green.”

However, the International Franchise Association’s VetFran program and

businesses that are heavily involved, such as 7-Eleven, Papa John’s Pizza, and Liberty Tax Service, are proving that is not the case. Veterans are finding jobs thanks to the Operation Enduring Opportunity initiative and 610 participating companies that are offering business ownership.

VetFran has stepped in to bridge the gap between franchise companies looking to hire and veterans looking for work.

VetFran has joined with government organizations, such as the White House Joining Forces Initiative, to expand the association’s efforts. It has taken the lead on the legislative forefront to propose bills that supply tax credits for veterans who purchase franchise businesses and tax relief to those who hired them.

IFA hosts conventions, summits, and committees around the country to promote the awareness and impact of VetFran.

The organization’s efforts have not gone unnoticed. Since the onset of Operation Enduring Opportunity in 2011, VetFran has led 4,314 veterans to franchise ownership.

As a Chairman’s Corps partner with VetFran, our company knows firsthand about supporting military service members and veterans. The company’s culture is founded in its inherent belief in America and those who serve in our military. After all, liberty to a veteran means “your time.”

In a national campaign, our company partnered with Cell Phones For Soldiers,

Franchising USA

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Vetera ns i n Fra nch isi ng

Martha O’Gorman, Chief Marketing Officer, Liberty Tax Service

of their own. The advantages to owning a franchise can fit neatly into a former soldier’s OPORD (operation order): • Independence • Freedom routine • Flexible hours • Pride in helping others • Stimulation from daily challenges, no dull office routine

“It has been Liberty Tax Service’s duty to connect American heroes with the American Dream since the opening of our doors in 1997.” the brainchild of teenagers Brittany and Robby Bergquist of Norwell, Mass.

Participating Liberty Tax offices are dropoff points for cell phones, iPods and toner cartridges which are then redeemed for cards that provide free telephone calls for the troops. As a National Premier Partner, Liberty Tax Service has contributed more than 140,000 used cell phones since 2004 totaling more than 20 million minutes of calling time for military men and women.

To further extend support, our franchise system adopted and sponsored the mission of Wounded Wear, a non-profit founded by former combat wounded Navy SEAL Jason Redman in 2010. His goal is to provide free clothing, as well as modified clothing to wounded soldiers. Wounded Wear raises the awareness of the sacrifice wounded soldiers make, hosts wounded warrior empowerment and registration events, and sells fashionable Wounded Wear clothing for all Americans and patriots.

CEO and founder of Liberty Tax Service

Franchising USA

John Hewitt states, “It has been Liberty Tax Service’s duty to connect American heroes with the American Dream since the opening of our doors in 1997. When VetFran approached us early on to partner with their initiative, it was a no-brainer; our missions were one in the same.”

“Honorably discharged veterans have proved themselves as dedicated citizens and are more than welcome to join our Liberty family,” Hewitt adds.

As a seasonal company, Liberty Tax implements many grassroots programs and community events to stay in the minds of the people. VetFran has worked with us during several conferences and panel discussions as well as patriotic events.

VetFran is an arm which Liberty Tax uses to connect with other franchisors, retired military professionals as well as veterans.

The case has been made on why franchisors should hire veterans.

Franchisors must now sell themselves to the veterans who want to own a business

• Leadership, the ability to mentor and motivate others can be extremely fulfilling Franchisors have the power to create opportunities for veterans. Disney, Walmart and others are already heading up the movement. Coming together with VetFran, other franchisors can enlist in the operation and lower the unemployment rate for America’s most outstanding citizens. Veterans deserve a fighting chance on their own soil. VetFran fosters the relationship between franchises and all organizations that connect veterans to employment. Join the movement.

Martha O’Gorman is Chief Marketing Officer and one of the founders of Liberty Tax Service, a tax preparation company.

For more information: Website: www.franchise.org/vetfran.aspx Website: www.libertytaxfranchise.com/ Previously published in Franchising World.

Brian Fish of WIN Home Inspection Mount Vernon and Whatcom, Washington served eight years in the Navy as an Aviation Electricians Mate 2nd Class before he became a WIN Strategic Partner or S-P (that’s WIN-speak for franchisee.)

Brian Fish When a local WIN home inspector performed his home inspection in 2009, he began looking into the opportunity for himself. Impressed it was a veteran friendly company, he could relate to the values WIN stressed and the team behind the scenes. After comparison research of other veteran friendly franchises, WIN quickly stood out and he hasn’t looked back.

“WIN’s set of values and mission make sense and I appreciate the focus on growing the S-P markets, not just the company,” says Fish. “WIN is large enough to have a good market presence, but small enough to stress care on an individual level. When going through the process of becoming an S-P they took the time to get to know me and my goals and not only ensured I was a fit for WIN, but that I had what it takes to build a successful business. They involved my wife in the entire decision making process and make their president and CEO’s available to talk at any time. That spoke volumes to me.“

Profile

“With latitude to grow beyond his first location in Mount Vernon, Fish recently acquired the territory of Whatcom and is on track to break 400 inspections for the year.”

Fish appreciated that WIN corporate also encouraged him to speak with other veteran S-P’s and to be a part of their WIN for America veteran friendly program, in which he received 10% off his franchise fee. “Bottom line, the franchise model in place is a great one,” says Fish. “I simply follow the program and in my first five months as a WIN S-P, I doubled my numbers.

With latitude to grow beyond his first location in Mount Vernon, Fish recently acquired the territory of Whatcom and is on track to break 400 inspections for the year. “WIN was hands down the right choice for me,” says Fish.

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

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ex per t advice

Adam Heitzman, Co-Founder and Managing Partner, HigherVisibility

WC3 Validation:

H ow D oes I t W ork and D oes I t A ffect S E O for F ranchises ? it means that you are making sure your website is up to the coding standards set out by the Wide Web Consortium—it checks the HTML code for proper markup. If you validate your site and are following these standards, the ideas is that your website will have the best chance of working on different browsers. A few more reasons to validate your website include: • Catch Missing Errors. Although many web browsers are fairly good at catching style errors, they can’t catch them all. Validating your website will help you catch those errors that are missed and help debug your site so that it is consistent amongst all browsers.

Whether you’re working with a franchise or not, once you’re SEO knowledge has become a little bit more advanced it makes sense to question every little thing and figure out whether or not it affects SEO, including W3C validation.

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Because W3C has been a term that Webmasters have used for years, the discussions about the SEO implications of validating your website have, for the most part, disappeared. It’s important that as a Webmaster you ask yourself a few questions: What is WC3 validation, why does it matter, and how do I get started?

How WC3 Validation Works WC3 stands for “Wide Web Consortium,” which is essentially a company that develops standards for code on the web.

If you are going to use WC3 validation,

• Prepare for Future Changes. It lets you know that your pages are built following web standards, which means that your site should run smoothly in the future even if changes to the web are made.

• Look Professional. If you were to look at the content on a website, validation can help you tell if it was created by someone who really knows their HTML or CSS stuff. In other words, it helps you look professional.

• Good Learning Tool. It helps make things easier because more people understand HTML and CSS (it’s also great for beginners trying to learn the ropes).

You can validate your website here. All you need to do is type in your URL and

“Understanding how validation works, and particularly how it works in regards to SEO, can help you get a clear picture of your company and help you prioritize.” then check how many errors were found.

There will be a list of errors so you know exactly where the problem lies as well as a few options to fix the problems. You can also visit this link to get installation information for the W3C markup validator.

So Are There Any Reasons Not to Validate?

In the past people might have made the argument that it doesn’t allow you to be creative, but that logic is long gone now that HTML and CSS are more advanced.

Some people might argue that it takes some time and fixing issues can be confusing and it’s not worth it because your website looks fine. In some cases you can get away with this, but better to be safe than sorry. Long story short, it’s not absolutely necessary, but it can’t hurt.

So Does WC3 Validation Affect SEO? The majority of industry experts say that WC3 validation has zero effect on SEO. Validating your site can give you some great insight into your web development needs, but it won’t directly affect your SEO ranking. The biggest reason that people feel this way is because Matt Cutts, Head of Google Webspam, said so himself.

Here is the video http://www.youtube. com/watch?v=FPBACTS-tyg that so many people have referenced since it was launched in 2009.

According to the video and other research, there are essentially two main reasons that WC3 validation isn’t really going to matter when talking about organic search (hint: it all comes back to Google):

2. Google itself (along with other major brands) doesn’t validate. If you visit the validation service and type in Google. com, there are dozens of errors. Clearly they’re not putting much stock into this service.

Once again, this video only proves that this particular type of validation isn’t the only thing that Google uses to validate your website. Understand what it means and keep it in mind, but don’t worry if it’s still on your list of things to do.

What W3C Validation Means to Franchise Owners When talking about franchise companies specifically, this topic is particularly important because franchises may have more than one website or more than one manager working with one website.

Having the thought that you absolutely need to validate your website or websites in your head can be a huge burden if you’re dealing with all of the hats that come with franchise ownership.

Understanding how validation works, and particularly how it works in regards to SEO, can help you get a clear picture of your company and help you prioritize. In general, W3C validation is probably not the first thing that should be on the priority list for a franchise, but it’s something to

Adam Heitzman

keep in mind for the future as you continue to grow.

Once again, validating your website does have benefits and it is a good way to improve and understand your site. When it comes to SEO, however, validation is not something you should worry too much about because it’s not something that is going to affect your rankings.

What is your opinion on W3C validation?

Do you have any personal experience with validation and SEO implications? 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/

1. Broken code isn’t going to take away great content. People can understand great content even if there is a slight problem with the code, so that shouldn’t affect that piece of content’s position on a SERP.

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Ca rePatrol

CarePatrol:

Senior Care’s Best Kept Franchising Secret Every once in a while, an exciting and lucrative franchise concept arises out of a market void, a void that desperately needs to be filled.

The Baby Boomer market is exploding.

And with over 10,000 people turning 65 each day, the Senior Care sector of franchising has become one of the hottest and most profitable. In ever increasing numbers, Boomers are actively seeking the best possible senior care service options for both their parents and for themselves.

For several years, the hottest senior care franchise concept has been NonMedical Senior Care Companion Services. However there are several major drawbacks to owning one of these franchises. Dealing with hundreds of lower paid personnel, high employee turnover rates, last minute rescheduling issues, and the liability of caring for several hundred seniors keeps owners of these franchises on call 24 hours a day, seven days a week. Sleepless nights and weekend emergencies become the norm.

But there is a franchise concept that is far more attractive and that works within the same lucrative senior care market segment.

This franchise concept is epitomized by CarePatrol - an assisted living placement franchise which helps seniors and their families find independent living, assisted living, and memory care communities as well as in-home senior care services .

Care Patrol has won the prestigious Franchise Satisfaction Awards from the Franchise Business Review in 2011,2012

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and 2013. CarePatrol is also ranked in the January 2014 edition of Entrepreneur Magazine, as the #1 Assisted Living Placement Franchise in America and earned an overall ranking of #288 out of over five thousand franchised concepts in the nation.

How does the CarePatrol model work?

For the past 20 years, CarePatrol has continually refined its model. As a first step, the Care Patrol franchisee makes an in-person or phone call assessment of the senior’s care needs, financial flexibility, and desired location. The senior’s care needs include their ability to independently dress, clean, shower, prepare food, toileting and other activities of daily living. The senior’s financial flexibility includes an overview of income streams, assets, and access to various benefits. The desired location usually relates to family and friends.

The next step is the CarePatrol franchisee “matching” the senior’s care needs, financial profile, and desired location with three or four communities/care providers.

The CarePatrol franchisee then schedules a time to pick-up the senior and their family and then accompanies them as they visit the recommended communities, similar to a realtor showing a family a new home.

When the senior and their family chooses a community, the franchisee bills that community between 50 percent and 100 percent of the senior’s first month’s fees.

The CarePatrol franchise model is far less complicated with less “moving parts” than the traditional Non-Medical Senior Care Companion franchise model.

Who is right for CarePatrol? Someone who is dynamic and good with people.

A hard- working self-starter with the compassion to help seniors and their families in their time of need. For the right franchisee, CarePatrol provides a lucrative income with minimal up-front investment and low ongoing overhead.

Sound like you? If so, go to www.DiscoverCarePatrol.com or call our office at 480-626-2450

Publication name: Page: 17,0,2,26 1 Printed from: Serif Ad, PagePlus Copyright © 1991-2013 Serif (Europe) Ltd. All Rights Reserved Printed on: 12/27/2013 1:35:20 PM Publication name: Ad, Page: 1 Printed from: Serif PagePlus 17,0,2,26 Copyright © 1991-2013 Serif (Europe) Ltd. All Rights Reserved Printed on: 12/27/2013 1:35:20 PM Publication name: Ad, Page: 1

The Fastest Growing The Fastest Assisted Living Growing Placement The Fastest Growing Assisted FranchiseLiving In ThePlacement Nation!!!

Assisted Living Placement Franchise In The Nation!!!

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spotlig ht on ser vice

Tenet Fina ncial G roup

Funding with Finesse: T enet F inancial Group

Today, no different from years ago, it is believed that the number one reason new businesses fail in the first couple of years is due to lack of sufficient funding.

Knowing that, Tenet Financial Group can assist small business owners throughout the United States in being better prepared for how to avoid any obstacles and ensuring they are beginning their new venture at the right time and sufficiently capitalized.

Offering a variety of funding options, Tenet Financial Group consultants work with clients to review funding options and assist them in understanding today’s credit markets. As a full service third party administrator, Tenet Financial Group is focused on helping their clients find the funding they need to purchase their new business or to recapitalize their existing business. Typically introduced to clients through franchisors, coaches or brokers, Tenet Financial Group operates in a boutique style manner in that it is extremely client centered and offers attention to detail. “Our team takes the time to ensure the clients know and understand their options,” Diane Rosenkrantz, Senior Consultant at Tenet Financial Group says. “This begins with the first conversation and continues throughout the Design, Installation, and Administration process.”

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“Tenet Financial Group is rated A+ by the Better Business Bureau and was awarded Funding Vendor of the Year by Franchise Brokers Association (FBA) for the past two years.”

Founded in 2008 by Qualified Plan Designer, Derrick Skogsberg, Tenet Financial Group was born from a dozen years of experience in the financial and franchise industries. Recognizing a need for a true customer focused, consultative approach, he launched the independent funding business to fulfill that market need. Today, with a very experienced team, the independent nature of the business has allowed Tenet Financial Group to preserve and grow its specialty and niche.

“Tenet’s specialty is assisting clients throughout the country that are interested in learning about the Rollover funding option,” Rosenkrantz says. Using retirement funds such as 401K, IRA, pensions, 403b, 457, or annuities, Tenet Financial Group clients can use their retirement funds to buy a business, pay for any business expense, and to pay themselves a salary without incurring personal taxes or penalties for doing so.

“Clients can pay themselves a salary as soon in the process as they wish, even before they reach profitability,” she adds.

Although there is no IRS minimum or maximum with regard to the amount of retirement funds a client can use for their business, typically these funds are a beneficial option for individuals with $35,000 or more in retirement funds. Since this funding option is not a loan, these funds are actually used to buy stock in a client’s business, and therefore are not a personal distribution or a withdrawal.

The process begins with a conversation between the client and a Tenet Financial Group Senior Consultant. During this dialogue the pair will cover topics such as what the client’s needs are, their timetable, and where they are in the exploration process. The next step involves verifying that the client is able to access the funds

in a timely manner. For example, if an individual wishes to utilize their 401k dollars the funds typically must be from a prior employer. Additionally, “Clients with traditional or standard IRA’s can rollover those funds, but Roth or Inherited IRA’s cannot be rolled over,” Rosenkrantz notes.

Through asking these direct questions about the funds the client has access to, Tenet can begin with the key steps in the process. First, they’ll set up a new corporation. Second, they will obtain the Federal tax numbers and finally, they will design and install the new 401K Profit Sharing Plan. Tenet Financial Group ensures that clients work with the same Senior Consultant from the first phone call until the entire funding process is complete. As most clients are not familiar with the design and installation process, it’s important that they not be handed off to an “account specialist” who may not be familiar with their individual needs.

Another benefit to working with Tenet Financial Group is that all of Tenet’s Administration Work is completed in house; “Tenet Financial Group does not outsource any of our Administration Services,” Rosenkrantz says.

Periodically, clients will need additional funding beyond their 401K or IRA’s.

Tenet Financial Group will review how unsecured funding or SBA loans can also be used in combination with retirement plan dollars. For projects with higher costs, “Clients can, in fact, use the rollover funds to satisfy the cash injection requirements for a conventional or SBA loan,” Rosenkrantz explains. Today, many clients wishing to be overcapitalized will be interested in obtaining additional unsecured lines of credit. To qualify for this funding option, clients must have: a credit score of 680+, a good credit history

Diane Rosenkrantz

with no liens or bankruptcies, no or very few late payments, and reasonable credit use (i.e. low debt).

Tenet Financial Group is rated A+ by the Better Business Bureau and was awarded Funding Vendor of the Year by Franchise Brokers Association (FBA) for the past two years. Tenet’s grassroots marketing is demonstrated in their attendance at the International Franchise Expo Conventions, which they attend annually to meet and greet with existing and potential clients and franchisors. Additionally, Tenet co-sponsors the exhibitors gathering at each of the tri-annual conferences. With clients in almost every state in the country, the Tenet Financial Group difference is their ability to spend the necessary time with every client referred to the company.

At the end of the day, Tenet Financial Group’s clients rest easy in knowing that capitalizing their new business is not a task that should be completed on their own.

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

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Bob Funk, CEO and Chairman of the Board, Express Employment Professionals

The Great Shift:

A New Era for the Job Market and Why We Must Act “The Bureau of Labor Statistics reported 3.9 million job openings this summer, despite the high unemployment rate.” modeling suggests, however, that about half of the decline in LFPR during and after the Great Recession could not have been predicted.

Bob Funk

The U.S. unemployment rate has steadily declined from its Great Recession high of 10 percent in October 2009 to 7.3 percent in August 2013.

And, as the unemployment rate has fallen, something else has happened: the labor force participation rate (LFPR) has declined rapidly. LFPR is the percentage of adults who are in the workforce, and today it’s at the lowest level since the 1970s. In August, the LFPR reached a 35 year low – 63.2 percent.

This has become the new normal for the economy. Following the Great Recession, we’ve entered into a Great Shift. The shift is marked by the declining LFPR caused by retiring Boomers, Millennials who have given up looking for work and an overstretched taxpayer-funded social safety net.

Certainly, some of the decline in LFPR was entirely predictable as the baby boom became a retirement boom. Boomers are 26.4 percent of the population and about 38 percent of the workforce, and the first of them turned 60 in 2006. Economic

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It turns out millions of Americans decided the job market was so unforgiving that it was better just to give up looking for work. There are as many as 6.6 million Americans who are out of the labor force but still want a job. These aren’t boomers; they include many of the next generation, the Millennials. A report from the Federal Reserve Bank of San Francisco noted, “The recent withdrawal of primeage workers from the labor market is unprecedented.”

It’s not so surprising then that 36 percent of young adults ages 18-31 were living in their parents’ homes in 2012, the largest percentage in 40 years, according to the Pew Research Center.

Fewer workers plus more Americans relying on tax-funded benefits does not equal a robust economy.

Each of these trends can be at least partially blamed on the much discussed “skills gap.” The Bureau of Labor Statistics reported 3.9 million job openings this summer, despite the high unemployment rate. Employers often report that available workers just don’t have the skills necessary for available jobs. A survey of Express Employment Professionals offices found that 78 percent said it was “somewhat difficult” or “very difficult” to recruit and fill positions, especially in the fields of manufacturing, accounting, sales and IT. Certainly there’s a need for greater training and education. These solutions will take time and are not easy investments

for unemployed workers or indebted governments. But businesses can and must act. The implications of inaction are dire: a labor shortage, an uncompetitive economy, and a safety net stretched to the breaking point. Small and large companies must find ways to train inexperienced employees to fill open positions, which will also help cultivate the human capital necessary for increased labor participation.

In some cases, this means making current employees aware of existing programs.

The Society for Human Resource Management has reported that at least 90 percent of organizations offer professional development opportunities to their employees, but only half take advantage of them.

While we may take comfort in the occasional economic good news, we can’t rest easy until the trend of declining LFPR is reversed. America survived the Great Recession, but now we face another test: the Great Shift.

Robert A. “Bob” Funk is chairman, chief executive officer and president of Express Employment Professionals.

Headquartered in Oklahoma City, the international staffing company has more than 650 franchises in the U.S., Canada and South Africa. Under his leadership, Express has put more than five million people to work worldwide. Funk served as the Chairman of the Federal Reserve Bank of Kansas City and was also the Chairman of the Conference of Chairmen of the Federal Reserve.

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

Page 69

JOIN THE: #1 Fastest Growing Pizza Chain in the World! #1 Fastest Growing U.S. Pizza Chain! #1 Largest Carry-Out Pizza Chain in America! #1 Best Value in America, 6 consecutive years!

1

2

3

For more information, visit LittleCaesars.com for Franchise Opportunities in your area.

Or call 800-553-5776 to talk with a Franchise Licensing Advisor 1 Based on net number of stores added, 2008-2012. 2 Nation’s Restaurant News, June 24, 2013. 3 *“Highest Rated Chain - Value For The Money” based on a nationwide survey of quick service restaurant consumers conducted by Sandelman & Associates, 2007-2012 ©2013 LCE, Inc. 42569

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ex per t advice

Greg Nathan, Founder, Franchise Relationships Institute

Creating Your Own Hom “Franchisees with high levels of family and social support consistently outperform those low in this area. This includes measures of profitability, customer service, and general satisfaction with their life as a franchisee.”

Greg Nathan

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Just prior to the last Olympics, which were held in Britain, I predicted Britain would win a record number of medals and I was right.

“home ground advantage.”

I am not psychic, not a great fan of the Brits (I am an Aussie) and to be honest, not much of a sports fan. I am however a believer in what is often referred to as the

Psychologists have consistently found the support of others, what is technically referred to as “psycho-social support,” has a positive and powerful influence

An analysis of Olympic medal wins by Professor Ray Stefani at California State University has shown host countries on average win 46 percent more medals than in previous games. One reason for this is the powerful and positive impact of having lots of local supporters.

me Ground Advantage “A supporter can be defined as anyone who willingly invests their time, energy or resources in your success.” life and take an interest in this. Treat them as people first and employees second.

3. Phone a franchisee who you have something in common with to ask how things are going and share something positive that has happened in your business recently.

4. When suppliers call, ask them if they have any ideas on how they can help you to improve your business.

over all areas of our lives, including how we perform at sport and how we bounce back from life’s physical, mental and emotional challenges. Not surprisingly this “Supporter Effect” also operates in business, particularly in a franchised business, where there are numerous opportunities for franchisees to tap into the support of others.

In our research on thousands of franchisees at The Franchise Relationships Institute, we have found franchisees with high levels of family and social support consistently outperform those low in this area. This includes measures of profitability, customer service, and general satisfaction with their life as a franchisee.

A supporter can be defined as anyone who willingly invests their time, energy or resources in your success. We are not just

talking about customers. Supporters can include employees, suppliers, financiers, family members, fellow franchisees, franchisor support staff and the local community.

Because this is such a broad group of people, franchisees need to continually focus on building a team of supporters. In a sense this is equivalent to creating your own home ground advantage.

Here are seven tips to help you build supporters. None of these cost more than a few dollars.

1. Thank members of your franchisor team when they do something useful. They will be more likely to support you in the future if you are supportive of them.

2. If you employ staff ask each of them what they are passionate about in their

5. Make a time to visit your bank manager to tell him or her how your business is tracking and your plans for the future.

6. Thank your family for their tolerance and support of you spending so much time in your business. Make time to do more of the things they enjoy.

7. Buy a coffee for a fellow business operator in your vicinity and share a few minutes together talking about business and life.

The truth is no one succeeds alone in business or indeed in life. Are you spending enough time building your own home ground advantage?

Greg Nathan is a psychologist, Founder of the Franchise Relationships Institute and author of several best selling books including, Profitable Partnerships.

For more information: Website: www.franchiserelationships.com

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Pink b er r y

P inkberry ’ s Global S cale :

19 Countries and Counting Franchising USA recently had the opportunity to speak with Ryan Patel, Director of Global Real Estate and Business Development of Pinkberry, an upscale frozen dessert restaurants headquartered in Los Angeles, California.

Looking to find out more about what the company has been doing in terms of expansion, we asked Ryan to share with us

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his advice on real estate options and site selection.

Tell us a bit about Pinkberry’s recent development and successes.

Pinkberry has scaled to 19 countries across the globe, keeping its product, service and experience consistent. The brand is relentless about its commitment to uncompromising quality across every aspect of it’s business, yet adapts how it needs to in order to meet local market demands. When it comes to real estate, we make decisions based on brand standards and our franchisees local knowledge to create the best opportunity to serve the region.

Ryan Patel

“When it comes to real estate, we make decisions based on brand standards and our franchisees local knowledge to create the best opportunity to serve the region.”

What has Pinkberry’s growth looked like thus far?

We have now have over 240 stores in 19 countries. We have been truly fortunate in our growth clip with some great franchisees whose groups have done a fantastic job in helping to build the brand in their respective countries. Together we have an unparallel commitment to customer service and to innovating product experiences that delight them each and everyday.

What are the requirements to become a Pinkberry franchise owner?

We are not just looking for franchisees that are financially qualified or experienced operators in their markets, but candidates that share like-minded values with us. We want to build the brand in each market and each country the right way, covering all aspects from marketing to real estate.

With your experience working for several different brands, corporations, and franchise organizations, how do you see real estate factor in?

It is an important factor for any company.

It is an extension of the brand and the experience. Just like other departments, you need to develop a very thought out plan and create a process. In my world, before you even start looking at a specific site, one should create a market plan that looks at the build out of the entire market.

Identifying the right core trade areas and where people are in each of those subsets is half the battle.

With experience in travelling between various countries in search for new markets for the brand, what are some important factors or tips you would share with a franchisee trying to select a site?

Do your homework and be honest with yourself. You have to get into the details and not rely solely on others. Do your own research and either confirm or disapprove the hypothesis of not just the area, but also the site. It is not just ‘Is there enough people in the trade area,’ but ‘Are the same people going to be coming in or near your site?’ Sometimes individuals fall in love with a particular area so much so that they would do anything to build

their business in that area. Out of their emotions and determination to build in that area they end up choosing a site that is down the corner in the alleyway with a bad lease just to say they are there. I know it sounds foolish, but sometimes people get so caught up with the deal and their commitment to store count, that they do not have guardrails in place to catch this.

Be creative. Taking that extra step in having a flexible footprint and being innovative can secure that “A” space. From kiosks to doing carve outs of spaces to stores within a store frontage, we have been able to take advantage and secure good real estate in many countries.

What parts of the world is Pinkberry currently focusing on?

We are making a push in Latin America with the success we have had in Peru with over 18 stores there. We have recently signed Panama, Venezuela, and more to come. In addition, Southeast Asia has been a focus as our launch in India and the Philippines have been a success. We have recently added to our list, Australia.

Growth is dependent on best serving our customers each and every day. Growth is the outcome of our commitment to product quality, customer service and inspiring environment that people destinations for communities all over the world to connect.

For more information: Website: www.pinkberry.com/franchise

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Sunil Dewan, International Business Development and Operations, Homestyle Dining LLC

Are We Ready to “Like it or not, for all practical purposes, the franchisee expects to be treated as your ‘partner’ because he/she has invested trust and capital (maybe life savings) and is depending upon the system.”

I am often approached by entrepreneurs and established companies alike who are trying to determine if franchising can be a good growth model for them.

In some cases the decision to franchise has already been made whereas, in others, the business is conducting research and introspection to determine if franchising is the right path to growth. We have all seen statistics that show that franchised outlets, as compared to non-franchised start-ups, have a significantly greater likelihood of success and countless companies worldwide have used the franchise process to grow.

Now the question is, “are you ready to franchise?” The answer, of course, is not easy, and so my first answer is usually, “it depends.” The factors on which it depends on include:

Franchising USA

Franchise?

• Is the business successful?

• Has the format been successfully replicated?

• What does the concept offer that is unique?

Remember, the concept and the system have to be viable and profitable to provide at least a competitive return on investment at the individual outlet/store/location level.

Moreover, the business has to be attractive enough to potential franchisees for them to want to invest, not only their capital, but also their hard work, credibility, and social standing.

The First Step Undertake a self-analysis of the business.

Just because the company has been successful does not automatically mean that the franchise system will be successful.

Among other things, we have to be able to answer the following questions honestly: First, is the business profitable and has it sustained profitability over a reasonable period of time? Does it generate a competitive rate of return? Will it generate a competitive rate of return for the franchisee, who will have to pay franchise fees and royalties?

Second, can the business be replicated and can it be taught consistently to multiple franchisees? Does it require special technical education or expertise, or can

“Remember, the concept and the system have to be viable and profitable to provide at least a competitive return on investment at the individual outlet/store/location level.”

the business be taught in a relatively short period of time to any potential franchisee?

I am not suggesting that the concept has to be simple; many complex operations can also be franchised. In order to do this however, the business must either have the systems in place or the financial and personnel commitment in place, to develop those systems and to replicate and teach the concept to franchisees.

For example when I led the development and successful expansion of a franchise concept for a high quality U.S. veterinary hospital chain (quite possibly one of the first medical franchises,) the concept was complex as it included both the medical and business sides of the concept.

On the medical side, it needed to include items such as treatment protocols, formulary and drug dispensing, and on the business side, it needed to cover items including retail products, accounting, marketing, and hiring and training.

In addition, the franchise could only be offered to medical professionals (doctors) who had graduated from veterinary schools as most of the US states require that, in order to own a veterinary practice, one must have a veterinary school diploma. Despite these challenges, we did develop our initial business plan while taking these parameters into account.

Third, is the product/service being offered

different enough and unique enough to be attractive to customers and franchisees? Is the demand sustainable?

Fourth, does the product/service/business lend itself to continuing innovation? How, over the years, will the company continue to add value to the concept and keep it fresh, thus offering continued value to the franchisees? Franchisees rightfully expect ongoing value for the royalties they pay.

Finally, does the organization have the people, financial resources, operations manuals, training programs and the commitment to support multiple locations over a large geography? Remember, customers expect a consistent experience; they do not know or care to know whether the location that they are dealing with is franchised or company-owned, only that they can expect the same experience wherever they go.

The Second Step Determine if you should franchise at all.

Do you need to franchise to accomplish your goals? One of the major reasons to franchise is that you establish a brand presence in multiple markets very quickly.

This is because there are multiple capital pools developing locations simultaneously in multiple markets.

If you have the capital and the human resources to accomplish the same without

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Sunil Dewan, International Business Development and Operations, Homestyle Dining LLC

franchising, then that is an option that you should consider. The profits from company-owned locations can be higher because the company gets the entire profit rather than just a percentage of the revenue as royalties. Company employees can be ‘controlled’ whereas franchisees may need to be ‘sold’ on new ideas, policies and procedures.

Franchise systems, by their very nature are complex systems. You must develop the system first, then sell the concept to multiple franchisees and continually provide training and support as they will look to you to make them successful.

This requires a commitment at the highest levels of your organization as you will need to tap into the company’s capital resources, develop legal, operations, training and sales documents (requiring services of experts such as franchise attorneys, consultants and bankers), and you will need to build an internal organization capable of developing and implementing strategies and tactics to sell

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“Now the question is, ‘are you ready to franchise?’

The answer, of course, is not easy, and so my first answer is usually, ‘it depends.’” franchises and then to support them.

Many countries do not legally require disclosures, but informal disclosures will still be demanded by potential franchisees, at some level, in order to make them comfortable with buying a franchise of your concept.

Like it or not, for all practical purposes, the franchisee expects to be treated as your ‘partner’ because he/she has invested trust and capital (maybe life savings) and is depending upon the system to build enough equity to fulfill his/her dreams of a comfortable lifestyle, college education for children, comfortable retirement, etc.

The Third Step Be ready! It is important to focus on critical areas of the business to prepare to franchise even before a final decision

regarding franchising is made. When you do get ready to franchise, much of the preparation will already have been done.

If the final decision is to not franchise yet, focus on the following areas will still help a multi-location business become more efficient, control costs, streamline operations, add value to the business and give it a better chance of success.

Products and Suppliers: Develop exact specifications for your products, so that there is consistency across the entire chain.

Deal with suppliers who have the ability to adequately meet your demand across various markets, to handle a larger volume of business as your business grows, offer you volume discounts (remember one of the values you can offer your future franchisees is their ability to buy at your negotiated prices,) and, in general, support your growth.

Page 77

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

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IN T ER N AT ION A L N E WS

Sunil Dewan, International Business Development and Operations, Homestyle Dining LLC

Franchising provides a number of benefits including faster growth, lower capital risk and getting motivated operators who are ‘owners,’ but it only works if the franchisor is well prepared. The franchisor must be able to guide, train and encourage franchisees and be able to provide support and services including operations, training, on-going concept upgrades and marketing and advertising. It is not a shortcut to growth; it is a planned, well thought out strategy. Every franchise system started with one location!

Trademarks: Protect trademarks and logos; when you franchise, the franchisee will be buying the right to use your trademarks, service marks and logos.

Brand: Develop your brand. The brand is not just the trade-name or a symbol or the logo used to identify and differentiate products and services from those of the competitors, it is also a promise of value and consistency that a business makes with its customers.

Premises Design and Signage: Design the premises so that it will be consistent with the brand image – make sure it looks the part. The design will need to be reproduced in different locations and regions of the world; will a Canadian design be just as acceptable in the U.S. or India or Brazil?

Having done that, make sure that you have the drawings and layouts, which will be used as a basis for designing future locations. Take another look at your exterior and interior signage to make sure that not only is it consistent, but that it also reflects the brand.

If you have staff uniforms, take a fresh look at them. If you do not have staff uniforms, should you have them? Do the uniforms reflect the character of the business; will they fit the climate and cultural norms in various regions and various markets from Dallas to Delhi to

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Durban; from Stockholm to Singapore to Sydney?

Equipment: Can the equipment be obtained locally? If not what is involved in shipping the equipment? Is it possible to get the equipment serviced locally in various markets?

Operations: In order to deliver on the promise of your brand, you need to take a look at your entire operation from top to bottom. Operations must be consistent from location to location. Document how you do business and then develop Operations Manuals and Checklists to make sure that the tasks are consistently performed.

Develop training materials and training delivery systems so that your employees – new hires and current staff alike – get the same, consistent message. Develop written policies and procedures, and detailed job descriptions for various jobs in your outlets.

There is collective wisdom among franchise experts that almost any business can be franchised. Having personally built and managed franchise systems in industries as diverse as fast food, full service restaurants, consumer services, education, high quality veterinary hospitals, real estate and specialty retail, I of course, concur.

For the past 25+ years, Sunil Dewan has built from ‘scratch’ and grown multi-million dollar business units, both franchised and company owned, in industries as diverse as quick and full service restaurants, specialty retail, consumer services, and real estate in markets across the U.S., Canada, Asia, Europe, Middle East, Australia/New Zealand, the Caribbean and South America.

His current and recent consulting assignments include: a Dallas, Texas based multi-national restaurant company; a Curitiba, Brazil based international specialty retail business; a Netherlands based chain of weight loss centers; and a Seattle, Washington based chain of coffee shops.

He can be reached at SunilDewan@gmail.com.

Sunil Dewan

Page 79

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International News!

Southern England, the Channel Islands and Northern Ireland.

The franchise continues to experience phenomenal growth in Australia at around 25 to 30 percent every year.

Cafe2U MD Derek Black credited two reasons for the perpetual overall franchise growth.

Cafe2U celebrates 150th Australian franchise milestone Australian-born Cafe2U has reached a significant milestone, having just launched their 150th Australian franchise in Hallam, Melbourne.

Cafe2U Hallam owner Peter Pettinella, whose franchise services the suburbs of Hallam, Doveton, Endeavour Hills, Lysterfield South, Narre Warren North, Narre Warren, Berwick and Beaconsfield has unexpectedly become central to the huge milestone for the world’s biggest mobile coffee franchise. Peter didn’t expect his new business venture to mark a major highlight in the history of the

Cafe2U franchise.

“I didn’t realise I had purchased the 150th franchise in Australia until the Cafe2U training commenced. It is a fantastic achievement for the company and I am thrilled to have come on board at such an important time in their history.” he said.

Cafe2U is now the largest mobile coffee franchise in the world, with over 230 franchises in operation and far outsizes any of its Australian competitors. Cafe2U has franchises throughout the USA, South Africa, New Zealand and the UK including Scotland, Northern England,

“Firstly there was the implementation of an ongoing programme of business analysis with existing franchisees and secondly there is the launch of the ‘Acceleration Package,’ which ensures new franchisees start their business with a higher base line of sales. This is a unique training and development programme which also includes a revenue guarantee for the first two weeks of trading,” he said.

Black said Peter symbolised what was great about the local status that is fundamental to Cafe2U, by being a proud, local resident owning his own business and servicing his local community. “This is a triumphant time within the company, launching our 150 Australian franchise.

With more franchises set to launch in early 2014, this indicates that we are still experiencing incredible confidence in the Cafe2U brand.”

For more information: Website: www.cafe2u.com/global/index. htm

Win your own business with Kwik Kerb Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and support that someone who purchases a Kwik Kerb business would receive.

“The competition will be launched exclusively in the March/April issue of Business Franchise magazine and will

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require entrants to email a summary outlining why they would be the ideal Kwik Kerb operator and small business owner.”

If this sounds like your dream business, make sure you check out the next issue of Business Franchise Australia and New Zealand, available in newsagencies and digitally via iTunes or Android on Friday, March 7, which will detail how to enter this life changing competition.

For more information: Website: www.kwikkerb.org/

Brumby’s Celebrates $10 Million in Donations The end of a busy day at Brumby’s bakeries across the country often marks what some might call the store’s most special hour. Regularly, franchisees bundle up leftover loaves for donation to various local charity groups, soup kitchens and homeless shelters.

Brumby’s estimates that over ten million dollars worth of bread has been donated by its 280 outlets in 2013 to local groups, including organisations like Rosies street vans and The Salvation Army.

“I am extremely proud of our franchisee community for donating more than ten million dollars worth of product in just one year.”

Brumby’s donates excess bread and bread rolls to church groups, homeless and womens shelters and soup kitchens to assist in feeding the many people using the groups services.

Mr Waite said local partnerships with ! an charity groups provided stores with ! avenue to make sure their products were ! !not wasted while also benefiting the )3456) community. )0$.1$%2

Brumby’s/franchisees also support the local 1! !

-!. 0through ' & , community various fundraisers and + *& sponsorships year round.

Brumby’s Bakery is part of Australia’s largest multi-food franchise operator Retail Food Group (RFG). With more than 105 million customer visits a year RFG owns the Donut King, Brumby’s Bakery, Michel’s much needed assistance for those who are Patisserie, bb’s café, Esquires, The Coffee “Brumby’s has a long history of donating less fortunate in our community,” said Mr Guy, Pizza Capers Gourmet Kitchen and bread to our communities because we bake ,!

Waite.

Crust Gourmet4Pizza fresh every day and therefore often have !3 !*.0$/franchise systems. ( ' / !9 /In!8addition, the Company roasts more than excess loaves at the end of trade,” said Mr “Donating our leftover products has become 2!34!.&/1.2m kilograms #)+of! coffee annually through 34 !: 2 $% 34 ( # !7 !"

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