Franchising USA - April 2013

Franchising usa T he ma g a z ine for franchisees

Issue 6 - apr 2013

Veterans in Franchising Special supplement

Tips for

Expanding Your Network

Facebook Graph Search:

W h at Yo u N e e d T o K n o w

Thomas Franchise Solutions: $5.95 www.franchisingusamagazine.com LATEST NEWS

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 1, ISSUE 6 APRIL 2013 publisher: Colin Bradbury. colin@cgbpublishing.com

EDITOR: Christie Hall. christie@cgbpublishing.com

ASSISTANT EDITOR: Sydney Eurchuk. sydney@cgbpublishing.com

SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com

SENIOR SALES EXECUTIVE: Jenn Dean. jenn@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: Peter Thomas Thomas Franchise Solutions

CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 778-426-2446 Editorial: 778-426-3452 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

from the

Editor Military Veterans: Sacrifice and Success

Veteran Franchise Centers, Recruit

There is a special relationship that exists between the franchising industry and US Military Veterans. From the early days of working on our first issue of Franchising USA, this is a theme that has repeated in so many conversations as we speak with franchisors, franchisees, and others in the franchising community.

career in military service are now finding

My two grandfathers were WWII veterans, who had long military careers.

I have always been immensely proud of both of them. More recently, I have a number of friends either currently in the military, or retired after 20+ years of service. I have seen first-hand the joys and the struggles of life in the military, as well as the joys and struggles of moving on to the next phase of life.

Transitioning into a civilian career after years in the military presents a number of challenges. For some it may mean a process of re-education. For others, it will be figuring out how to take skills gained in the military, and transfer them to the civilian workforce. With the help of organizations like the IFA, VetFran,

Military Franchise Programs, and others, Veterans who have given years of their

success in new industries by becoming franchisees. And franchise companies

recognize both the sacrifice that has been

made, and the potential that lies ahead for Veterans looking to start a new career.

Incentive programs, recruiting, training,

and financing assistance are just a few of

the ways that franchise organizations are reaching out to Veterans.

This month we are featuring the first of three special supplements which will

focus on Veterans in Franchising. We

hope that you will find the articles and

opportunities in this month’s supplement to be useful and informative. If you

are a Veteran, let us first say a heartfelt

thank you. We truly appreciate what you do. And as you look ahead to a career

in franchising, we are confident that you

will find many great options available to

you. We wish you success and fulfilment

as you start the next phase of your career!

Christie Hall Editor

www.franchise.org

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

Franchising USA

april 2013

On the Cover 10 Cover Story

Thomas Franchise Solutions: Investing in Values

27 Veterans in Franchising Supplement – Part One

the Impact of Facebook Graph Search

74

Expanding Your Network

Feature Story: Service Brands International

Kelly Magure, AviaTech

Robyn Gault, Direct Capital

66

68 The Importance of Social Engagement and

50

f ra nchising usa

Contents 23

In Every Issue 06 Franchising News Announcements from the industry

15 About Franchising – from the IFA IFA’s VetFran Partners With Hiring Our Heroes and Capital One on

Behalf of Veterans

23 Feature Article Real Estate

58 Women in Franchising Suzy Boerboom, Welcyon, Fitness After 50

71 Have Your Say Matt D. Essex, Active Rx Active Aging Centers

Franchising USA

12 A New Golden Age for Franchise Investement Daniel Brunell, Dearborn West

56

Expert Advice

16 Selling Your Franchise Dale Willerton, The Lease Coach

47 Receive Good Training Sarah Kulbatski, JT Corporation

51 Canadian Expansions of US Franchise Systems: Trade Marks Edward Levitt, Aird & Berlis LLP

56 Lessons From The Geese Jack Eberenz, Franchise Integration

68 The Importance of Social Engagement and

the Impact of Facebook Graph Search Kelly Maguire, AviaTech

74 Expanding Your Network Robyn Gault, Direct Capital Franchise Group

53

66 The Need for Home Care in the

Age of Health Care Reform Jennifer Tucker, Homewatch CareGivers

Franchisee in Action 20 Liquid Capital

Franchisor in Depth

62

53 WIN Home Inspection

62 Molly Maid

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what’s new!

Successful Paralyzed Ex-Hockey Player First Ever to Attain IFA’s Certified Franchise Executive Designation Lithia resident Bill Zapf of Waiting Game Publications was recognized today as a Certified Franchise Executive by the Institute of Certified Franchise Executives.

Zapf completed a comprehensive course of study in franchise management offered by the Institute, which is the academic branch of the International Franchise Association’s Educational Foundation.

On November 7, 1992, the Canadian-born and raised defenseman was checked from behind head-first into the boards and was left in a wheelchair for the rest of his life.

Despite losing his dreams on the ice, he has moved forward to build a company and to help others gain employment.

Zapf serves as the President of Waiting Game Publications, a franchise operation with 23 units throughout eight states and Canada. Zapf and his business partners developed The Waiting Game in 2009 as a means of providing affordable and effective, targeted advertising solutions for small and mid-sized businesses. Waiting Game Publications, LLC began franchising The Waiting Game concept in 2011 and have achieved rapid growth as a result of the strong business model and full support provided to franchisees.

Zapf credits Rose DuPont, Manager, Certification Program and other key personnel at the IFA’s Education Foundation with allowing him to be successful. “What many people do not realize is sometimes even the most basic tasks can be difficult, but there is always a way, and everything is doable” says Zapf, “the staff at the Educational Foundation were very helpful in accommodating me and allowing additional flexibility to complete many of the required hours through their excellent collection of online resources.”

Contact: www.waitinggamepublications.com

Auntie Anne’s and Cinnabon Try Co-Branded Units Co-branded Auntie Anne’s Cinnabon Café units are helping both quickservice snack brands expand their

of the newly combined concept as a “co-

blend” rather than a “co-brand.” Not only do the brands share the same retail space, but they also share the same registers,

some retail locations prompted the coblended concept, Hartman said.

Anaheim and Livermore, California.

“We wanted to see if we could literally

November, while the second location in

vice president of marketing at Cinnabon.

“We’re really excited about the concept and how it helps us evolve both of the brands,” Hartman shared.

dayparts and meal offerings.

The first two co-branded units are in

menus and employees.

The Livermore location opened first, in

blend the concepts,” said Kristen Hartman,

Anaheim opened “shortly after,” said

Auntie Anne’s chief marketing officer Heather Neary.

Neary said the company prefers to think

Franchising USA

“The reason we’re so excited about this is that it really gets us into other dayparts.”

In addition to the menu expansion and testing, the rising cost of real estate in

Auntie Anne’s has about 1,300 locations, while Cinnabon has 1,000 locations system wide.

Contact: www.auntieannes.com or www.cinnabon.com

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BACH TO ROCK PRESENTS ROCK N ROLL EARLY CHILDHOOD MUSIC EDUCATION PROGRAM

roll to our youngest musicians to help them not only develop a love for music but also improve hearing, bolster brain function, strengthen reading skills and improve social development,” said Brian Gross, president of Bach to Rock. “We are looking forward to rolling out the curriculum to Bach to Rock’s entire system.”

Bach to Rock (B2R), America’s music school for students of all ages, announced it has launched Rock n Roll, a new early childhood music education program designed for infants and toddlers and their parents.

Bach to Rock’s corporate schools in the

Classes are now available at all six of

class offerings and introduce rock ‘n’

Greater Washington, D.C. area. The

company plans to roll out the program to its franchise locations in New York and Pennsylvania over the next six months.

“We saw an opportunity to expand our

Several expert studies indicate that preschool children benefit from early music education programs and show advancement in developing several skill sets including pre-literacy, motor skills and coordination. Bach to Rock’s Rock n Roll program builds a fun learning experience by implementing strong teamwork and cooperative learning. This program also prepares students for Bach to Rock’s full range of music education programs for children of all ages.

Contact: 1-855-227-7570 franchise@b2rmusic.com www.b2rmusic.com/franchise

Star Wellness To Offer Military Veterans Discounted Franchise Fees As a way to honor the sacrifice they have made to our nation, Star Wellness announced that it will offer military veterans a ten percent discount on their initial franchise fee.

Johnette van Eeden, CEO of the Dallas/

Fort Worth-based franchisor and provider of state-of-the-art healthcare screening

services, announced the discount program as part of the company’s participation in

the International Franchise Association’s (IFA) VetFran program.

Star Wellness corporate and franchise offices provide onsite medical screening and laboratory services to more than 200 corporations, local governments and school districts in 23 states.

“Both my father and stepfather served in the armed forces so I feel it is our duty to support the men and women who sacrifice

so much for our country,” van Eeden said. “Star Wellness is excited to offer this opportunity to help veterans become successful business men and women. The discipline and goal-oriented skills they develop in the military are perfect for becoming successful franchisees.”

Contact: 800-685-5572 or StarWellnessUSA.com

Franchising USA

f ra nchising usa

what’s new!

Smoothie King Announces 20 Months of Consecutive Position Same-Store Sales Smoothie King Franchises, Inc., the premier smoothie and nutritional lifestyle center, announced that it has experienced 20 months of consecutive positive same-store sales. Coming off an overall 10.8 percent increase from last year, in January 2013 alone, Smoothie King’s US locations reported a 4.2 percent increase in same-store sales as compared to the previous year. Additionally, Smoothie King’s same-store sales have outperformed the overall same-store sales figures of the quick-service restaurant industry for 19 of the past 20 months, in addition to 11 consecutive quarters of positive samestore sales, according to an industry audit conducted by Smoothie King.

“Smoothie King’s 20 consecutive months of positive same-store sales increases is a true testament to the strength of our brand, which is not only driven by consumers’

increasing desire to live a healthier lifestyle, but also by our franchisees who are dedicated to delivering a superior customer experience,” said Smoothie King Global CEO Wan Kim. “This milestone is a remarkable feat, especially since in January 2012 the company posted a 25 percent increase in sales. Furthermore, this demonstrates that Smoothie King is a predictable, measurable and sustainable investment opportunity year-round, even during the winter months.”

Earlier this month, Smoothie King announced a new franchise development incentive program in celebration of its 40th anniversary. New franchisees will receive 40 percent off the franchise fee, a savings of $10,000, for the first 40 agreements signed in 2013.

Contact: www.smoothiekingfranchise.com

AlphaGraphics® Announces New Board Chair AlphaGraphics, Inc., a global leader in print and marketing communications solutions, announced the appointment of Gay Burke as chair of the company’s Board of Directors.

Burke brings deep executive experience in a variety of consumer products to AlphaGraphics’ network of nearly 300 franchise locations.

“Gay is a proven leader with a strong entrepreneurial spirit, and her appointment was a natural fit for AlphaGraphics,” said Art Coley, President of AlphaGraphics.

“I’m confident she will help us position AlphaGraphics for even greater success.”

Franchising USA

From 1993 to 2007 Burke was a top executive at Pumpkin Masters, a seasonal consumer products company. During her tenure, the company grew rapidly and achieved an impressive 80 percent market share while transitioning to international distribution and offshore manufacturing.

Burke was also CEO of Houston Harvest, the leading manufacturer of seasonal popcorn tins. Most recently, she founded a company that developed a healthy frozen pizza for national grocery distribution.

“It is an honor to join AlphaGraphics and work alongside Art and his team as we build on the strong heritage of this valuable brand,” said Burke. “I intend to

leverage my consumer expertise to serve our outstanding franchisees and their businesses, and I look forward to being a part of this great organization in 2013 and beyond.”

Contact: www.alphagraphicsfranchise.com

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Twin Peaks Debuts Scenic Views in Chicagoland Twin Peaks, the mountain lodgestyle sports restaurant known for its man-cave setting and friendly Twin Peaks Girls, recently opened its first Illinois location at 781 N. Milwaukee in Wheeling, near Chicago.

Twin Peaks Wheeling features 12,000 square feet of bold hunting lodge décor landscaped with more than 60 highdefinition televisions, two indoor fireplaces and an all-season oversized patio. The menu is made-from-scratch with a wide selection of 29-degree draft beers, a fullservice bar with 18-tap handles, including local drafts as well as the restaurant’s signature Dirty Blonde and Knotty Brunette brews, poured into oversized frosted man mugs.

“Guys crave a place that offers great food, cold drinks and all their favorite sports,”

said Randy DeWitt, CEO of Twin Peaks.

“Chicago fans are some of the most dedicated around, and with 60 televisions, Twin Peaks is the perfect hot spot to watch their teams and enjoy an ice cold beer.”

Twin Peaks’ comfort food menu features generous portions of classic American favorites like slow roasted Rib Eye Pot Roast, hand-prepared Chicken Fried Steak and Green Chile Meatloaf, as well as original menu choices like the hardy Hangover Burger and BBQ Pulled Pork Nachos.

Twin Peaks Wheeling is open Sunday through Thursday, 11 a.m. to midnight and Friday through Saturday, from 11 a.m. to 1 a.m. More information is available at www.facebook.com/twinpeakswheeling.

Contact: www.TwinPeaksRestaurant.com.

Fast Food Franchise Checkers Gets a New Life in Brevard Checkers restaurant, the fast-food restaurant that mostly caters to drive-through customers, is making a solid comeback in Brevard County.

Three of four Checkers that had been closed in recent years

have re-opened. And the new owners, Linda Schultz of Merritt

Island, along with partner Alan Balen of Michigan, who took over a bankrupt franchisee’s territory, plan up to eight stores in the county.

“From what I hear, a lot of customers missed the brand, missed the convenience and missed the food,” Schultz said.

Balen and Schultz studied the Brevard demographics, analyzed traffic patterns and paid attention to what customers enjoyed about Checkers all along, fast and convenient service.

“I think you just have to stay with the (corporate) vision, quick service,” Schultz said.

The company reopened locations in Palm Bay, Merritt Island and Melbourne. A fourth location wasn’t a desirable location and likely won’t re-open.

deciding to re-open the Checkers restaurant brand in Brevard.

“We wanted something that was not like what was there before,” Chios said. “And I did not want to be bothered by the previous company.”

bankruptcy protection.

Contact: www.checkersfranchising.com

Balen and Schultz played some market-research chess when

The four stores closed in 2009 after the owner filed for Chapter 11

Franchising USA

cover stroy

T homas Fra nchise Solu tions

T homas F ranchise S olutions :

Investing in Values Financial gain and career achievements are nothing compared to losing someone you love.

Being grounded in his values is what ultimately helped Peter Thomas overcome the loss of his son Todd to suicide in 2000. These values of Health, Happiness, Freedom, and Integrity mean more to Peter than money or business success. They are at the core of everything he does.

Back in 1976 Peter Thomas co-founded Century 21 Real Estate Canada Ltd. He

Franchising USA

served as chairman, successfully leading the company to $9 billion in annual sales when he sold his rights in 1987. Peter also founded Samoth Capital Corporation in 1984, and led the development of the Four Seasons Resort and Hotel after moving to Scottsdale, Arizona in 2000.

Now, as the founder of Thomas Franchise Solutions (TFS), Peter Thomas recently came back to the business world after a ten year hiatus. During that time he travelled to many parts of the world teaching to students, CEOs, prisoners, the military and members of the general public his philosophy on Values Based Leadership.

He also wrote a book called “Be Great,”

and started both a foundation and a leadership skills program called Life Pilot.

For his work on values based leadership Peter received his honorary doctorate of laws from Royal Roads University in Victoria, British Columbia.

But Peter Thomas has not always been so grounded. At the age of 33 he had an epiphany at a Young Presidents’ Organization gathering in Hawaii. In a class taught by Red Scott, the attendees worked through an exercise of aligning their daily activities and goals with their values. Peter realized that hardly anything he did aligned with what he was truly passionate about, and what he stood for.

Page 11

He made a pivotal decision to bring this new way of thinking into his life.

Peter Thomas attributes much of his personal and business success to this philosophy. He has refined it over the years and has shared his four hour Life Pilot program with people from around the world, and from all walks of life.

During the past decade of Peter’s retirement, he came to realize that entire economies are driven by small business.

“I believe small business is where the opportunity lies for the future,” he says, “especially since North America is not a manufacturing economy anymore. But small business people avoid risk and volatility, and that’s why so few people actually start businesses and why so many of them fail.”

Peter Thomas believes that franchising is the solution to this problem. By its very nature, a franchise is what Peter refers to as “a business in a box.” If franchisees follow the guidelines set out in a franchise company’s Operating Manuals and training programs, it is very difficult to fail. Because of these systems and guidelines, a franchise is an amazing opportunity for entrepreneurs.

“Just imagine,” Peter explains, “you have a partnership with a group who only get paid if you make money, and the split is usually 93 percent and 7 percent, with the franchisee receiving the 93 percent.” The other significant financial advantage is that franchisees benefit from the work being done at the executive level in the franchise company. In franchising, a small number of knowledgeable executives work towards success for all franchisees, significantly reducing the costs accumulated for individual business owners.

Peter’s confidence in the franchise industry is what led him to this corner of the business world. When he looked at getting back into business after his short retirement, one of his goals was to minimize risk both for himself and for

“There are almost unlimited uses for technology across various franchise systems, and when seeking a new investment, this is one of the key areas that Thomas Franchise Solutions looks at.” his partners. He looked at the real estate industry first because that’s where his background was. But as an investor, it did not suit his current needs, as it has now become a “big player’s game.” The lack of control that featured in real estate investing was also an issue for Peter in the stock market. At every turn, Peter found himself drawn to franchising, where the cash flow is stable and almost immediate, income and growth are sustainable, and there is always the option to sell as an exit strategy.

Upon digging deeper, Peter found two important factors at play for an investor in the franchise industry. The first factor is the introduction of Private Equity as a funding option, which has only become a financing option for franchise companies in recent years. The second key factor, and another recent development in franchising, is the use of technology available in franchise opportunities. There are almost unlimited uses for technology across various franchise systems, and when seeking a new investment, this is one of the key areas that Thomas Franchise Solutions looks at. TFS has invested in Dogtopia, a dog daycare concept, and use of technology is one of the factors that makes this a great investment. Through the use of advanced tools and cameras, dog owners can view their pets live.

The business model of Thomas Franchise Solutions reflects the values-based leadership style of Peter Thomas. “I can invest money in companies whose values align with ours, and help them grow.” TFS was founded with the aim of investing in many brands and helping people develop small business concepts that really work, like Dogtopia. TFS is just starting to expand the Dogtopia Brand, and they are

actively seeking other brands to invest in.

TFS looks for companies who have a proven franchise model and are looking for funds to grow and expand nationally and internationally. They have the sales force in place to do that. TFS is not looking to invest in start-ups at this time.

Each of the brands that pass their scrutiny will have the best practices brought to it by the experienced TFS team. Thomas Franchise Solutions refuses to let one of their brands fail. Once through their involvement the brand begins to flourish, they will make sure it has its infrastructure in place to support its growth, and that it can successfully create businesses and jobs for thousands of people.

For more information: Web: www.thomasfranchisesolutions.

com

www.lifepilot.org

Franchising USA

ex per t advice

Daniel Brunell, President, Dearborn West, LLC

A New Golden Age

for F ranchise I nvestment

“In a global economy, capital is highly mobile and clearly large corporations are taking advantage of the opportunity to set up shop elsewhere.

What this means is that the abundance of six figure jobs has been restricted and this trend shows no signs of being reversed. So the path to prosperity for a growing number of ambitious people will be through small business ownership.�

Franchising USA

Daniel Brunell

Despite suboptimal economic conditions here in the Unites States; there will continue to be a steady stream of new businesses blooming throughout the country.

As more Americans find new ways to earn a living, small business ownership will continue to rise. A relatively safe haven for first time business owners can be found in the world of franchising. The potential for growth in this area is almost limitless due to a massive shift in how people look at their careers.

Just a generation ago most young people joined the working world with hopes of finding a long-term job with a good company that could offer them a future.

This is a concept that seems incredible by today’s standards. In the 21st century, young people no longer expect to have one job in their lifetime. In fact, more young people than ever are turning to business ownership as the preferred career path.

A clear indication of this trend toward entrepreneurialism can be witnessed by observing our higher education system.

According to a study by the Ewing Marion Kaufman Foundation, in 1980, there were fewer than 300 Universities in the United States that offered course work in entrepreneurship. By 2007 nationwide, there were more than 2400 Universities teaching entrepreneurship and even offering full degree programs. This explosive growth was clearly due to the demand in the marketplace and has helped fuel the self-employment surge.

Currently there is an enthusiasm for self-employment never before seen in the postindustrial age. Many factors are driving this trend, but chief among them is globalization. In the scope of about a generation, we have entered into a truly

global economy. The interdependence between nations is now so great that one major player’s recession can trigger economic turmoil across the globe.

The globalization of the economy has created an intensely competitive business environment. As companies strive to reduce costs and become more efficient, farming out certain components of their business makes sense. Companies used to produce most of the components that went into their finished product in house, now suppliers typically make these parts. In many cases, final assembly is outsourced as well. Additionally, companies used to perform all of the functional roles necessary to run their operations in house.

This is no longer the case either.

The outsourcing of production and business processes has resulted in the demise of the traditional corporate structure. This has created a pyramid of interdependent relationships. At the top of the pyramid is a client company that is integrating services from vendors who provide outsourced solutions for a multitude of business functions. In

turn, each of the vendors is also a client company with various other vendor companies supporting their efforts. This change has caused a shrinking number of jobs in major corporations, but it has created immense opportunities for entrepreneurs to provide the services that were once generated in house. The demand for these supplier companies is one of the key drivers of the new age of entrepreneurialism.

Another key driver, specifically in the United States, has been the deterioration of the business friendly environment for major corporations. The U.S was once the most desirable place in the world to headquarter a major corporation.

The rule of law, respect for property rights and reasonable taxation were bedrock principles in post World War II America. Right or wrong, the level of corporate taxation has risen to the highest in the world among major countries. Additionally, government interpretation of eminent domain laws has grown increasingly liberal and the concept of blind justice is threatened

Franchising USA

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ex per t advice

Daniel Brunell, President, Dearborn West, LLC

by a trend toward delivering specific outcomes for favored parties. Regulatory burdens and the cost of labor add to the mix making the U.S. much less desirable for big companies. In a global economy, capital is highly mobile and clearly large corporations are taking advantage of the opportunity to set up shop elsewhere.

What this means is that the abundance of six figure jobs has been restricted and this trend shows no signs of being reversed.

So the path to prosperity for a growing number of ambitious people will be through small business ownership.

Investing in a franchised business model is about the safest bet for most new business owners. Far too many people underestimate the value of a proven business model. In essence, a business model is simply a system for making money. This system is far more important than one’s overall business experience.

Having previously worked from entry to executive level in corporate America, I thought I knew plenty about running a business. Boy was I wrong. When I started my first business, I learned how much I really didn’t know. Large corporations have legions of departmental staff who address all of the issues that land squarely on the plate of the small business owner.

Executive experience provides many valuable skills, but those do not guarantee success in a small business. A successful business model can only be created through a process of trial and error. This process can be very expensive, far more expensive than the average franchise fee.

The inevitable trial and error costs have already been paid for by the franchisor, so a new franchisee can focus on growing the business, instead of on how to create a functioning model. This is often the difference between success and failure in a new company.

Some people think that the highly structured environment of a franchise may not be suitable for them, and some people

Franchising USA

are right, it isn’t. However, the majority of people are very accustomed to working in a highly structured environment. Let’s face it, we are programmed to live in that environment our whole lives. From K through 12 education, to military service, college and corporate life, we are always following very specific rules and guidelines. In fact, most people will not thrive without structure. So a franchise system is typically not an onerous environment, it is a huge asset.

A key element of course is choosing a franchise that not only reflects your values, but is conducive to your talents, financial capabilities and lifestyle preferences.

Another important consideration when choosing a franchise is that it is an investment, and a long term one at that.

There can be rich rewards for making wise investments, but prudence and patience are part of making it work. Just like investing in stock, your objective is to find a good company with a solid plan and a great management team. Ideally this company should be on its ascendency, not already at or near its peak. Buying the

most expensive stock you can find is not always a great strategy; the same is true in franchising. If you want the best ROI, you need to consider up and coming franchise systems, not just household brand names.

Knowing how to find them and which ones hold the most promise is far more complex than doing a Google search, but I’ll address that in a future column.

The way forward for a new generation of Americans is likely to include business ownership at some point in their careers and franchise ownership will be a great vehicle for most of them. The value of self-determination has long been core to the American spirit and once again it is driving people to seek out new frontiers of opportunity. This time the frontiers are in the business world instead of the prairies and plains of a sparsely populated continent, but they hold just as much promise.

For More Information Phone: 951-587-6929 Email: dbrunell@dearbornwest.com Web: www.dearbornwest.com

IFA’s VetFran Partners with Hiring Our Heroes & Capital One on Behalf of Veterans The International Franchise Association VetFran initiative has strengthened its partnership with the U.S. Chamber of Commerce’s “Hiring our Heroes” program and forged a new partnership with Capital One Financial Corporation.

The partnership is part of its Operation Enduring Opportunity, the franchising industry campaign to hire as team members and recruit as franchise business owners 75,000 veterans and military spouses and 5,000 Wounded Warriors by the end of 2014.

As part of the partnership, the Chamber and Capital One made an $80,000 financial contribution to IFA. On Veterans Day, 2011 Operation Enduring Opportunity committed to hiring 80,000 veterans during an event with the First Lady Michelle Obama. Since that commitment, over 64,000 veterans, military spouses and wounded warriors have started careers in franchising, including 4,314 who have become veteran franchise business owners.

“We are grateful for the support of the Chamber and Capital One to recognize the proven track record veterans have as employees and franchisees in our

“IFA’s Operation Enduring Opportunity commitment represents a major component of the National Chamber Foundation and Capital One’s Hiring 500,000 Heroes campaign, the largest initiative of its kind.” industry,” said IFA President & CEO Steve Caldeira. “These relationships with Hiring Our Heroes and Capital One will further our collective goal of getting America’s returning veterans back to work and reducing the veteran unemployment rate.”

leverage the unique skills and experience our veterans have to offer.”

IFA’s Operation Enduring Opportunity

commitment represents a major component of the National Chamber Foundation and Capital One’s Hiring 500,000 Heroes

“We are honored to have the opportunity to work alongside IFA once again,” said U.S. Chamber President & CEO Thomas J. Donohue. “We share the important goal of helping the men and women who have served our country seek new opportunities in the next chapters of their lives. We hope this joint commitment will help thousands of veterans and military spouses pursue their dreams as franchise business owners.”

campaign, the largest initiative of its kind.

“The IFA’s efforts to hire veterans and military spouses and to motivate many returning heroes to become new franchise entrepreneurs truly represents the spirit of Hiring Our Heroes,” said John Finneran, general counsel of Capital One Financial.

“We are proud to support the IFA and the mission of Operation Enduring Opportunity. Together we are committed to helping ease transition of servicemen and women to the civilian workforce and help other companies understand and

Capital One will work together towards

The campaign encourages businesses of

all sizes to hire veterans and was launched

in March, 2012 with the goal of employing half a million veterans and military spouses by the end of 2014.

Through this partnership, the campaign

now claims commitments to hire 200,000 veterans, with nearly 100,000 already hired. IFA, Hiring Our Heroes and

the collective goal of hiring 500,000 heroes.

For More Information: Web: www.franchise.org For more information on Veterans in

Franchising, don’t miss part one of our

three part special Veterans in Franchising supplement, beginning on page 27 of this issue.

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ex per t advice

Dale Willerton, The Lease Coach

Selling Your Franchise?

H ere ’ s W hat Y ou N eed to K now about L ease A ssi g nments

Dale Willerton

As I travel speaking at franchise expos and restaurant shows I meet numerous franchisees – many who are planning to sell their franchise. This, of course, brings up the question about how best to initiate and negotiate a lease assignment with the landlord for the commercial or retail space the tenant is leasing.

One common question is will you, as the seller, remain liable for rental payments on a commercial space lease after you have sold your franchise? Unless you negotiate otherwise the answer is typically, “Yes”. To attempt to release yourself from obligation, you must properly inform

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and work with your landlord. The best time to negotiate your lease assignment rights is before you sign the Formal lease agreement – even perhaps in the Offer to Lease.

Frequently, I will receive calls from franchisees (and other business-owners) who have sold their business years ago but never told the landlord. Now, the buyer of the business wants to renew the lease agreement but is encountering all kinds of landlord roadblocks. Not only will the landlord be never amused, the original business owner will be in default for continued rental payments without a proper landlord-approved Assignment Agreement. So you must play by the rules to avoid unnecessary complications.

If you are leasing commercial, retail or office space for your franchise location then your landlord needs to know of and approve of your impending business sale. Here are points to ponder if you are selling your business and want to get an Assignment Agreement: 1. Make Your Assignment Request in Writing – Yes, you should call the

landlord or property manager and talk with him/her, but, in order to officially make a Lease Assignment request (and to start the process), you must make this in writing to the landlord. This also protects you or at least becomes evidentiary in-case the landlord is slothful in dealing with the assignment.

You have given written notice and the landlord must respond in a timely manner. Unfortunately, not all lease agreements have a specific timeline (such as 15 days to respond). The prospective buyer of your franchise may not wait around for 30 or 60 days while the landlord takes his/her time processing paperwork. One business owner I worked with was burned by this situation once, and, when he finally found a second buyer for the business a few months later, he actually came to The Lease Coach for help to make sure the landlord didn’t stall the process again. If you have not gone through

“For the landlord, a Lease Assignment is usually a lateral move and does not improve the landlord’s position or income level. If the person buying your business is less experienced or financially weak, the landlord can, justifiably, become nervous or even deny the Lease Assignment application.” a lease assignment before it can be tricky without the help or guidance of a professional lease consultant on your side.

2. Respect the Protocol – The Assignee (or buyer of the business) should not be the one approaching the landlord. I see this happening too often and the entire process gets started backwards. The Assignor (or owner of the business) is the tenant to the landlord. At the beginning of the process the landlord doesn’t even have to return calls to the

Buyer/Assignee, but the landlord is obligated by the lease agreement to deal with the existing Tenant/Seller/Assignor.

Often, if the seller lets an inexperienced buyer solely engage the landlord it may impede the deal or make it unnecessarily delayed and complicated.

3. Prepare What the Landlord Will Need - Normally a landlord, having received a written request for a Lease Assignment, will want details on the buyer of your business and the landlord’s future tenant. Specifics

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Dale Willerton, The Lease Coach

would include a business history, business financials and/or a personal net worth statement. Additionally, most landlords will want to see a copy of the actual signed Purchase Agreement or Offer to Purchase Agreement between the parties. This should be spelled out in the lease agreement already so start by looking there. The landlord doesn’t want a bad tenant just because you convinced him/her to buy your business.

There are rules of engagement which all parties must abide by. In some cases, the landlord will actually try to leverage a rent increase or threaten not to process the lease assignment. In one case I recall, the landlord upped the buyer’s deposit by $40,000. These landlord tactics could jeopardize the sale of your business.

I will always remember a franchisee that owned two franchise stores in California and found a single buyer for both locations. The landlord would not grant an Assignment even though the buyer was very qualified and even more financially set than the existing tenant who was selling. We actually had to fly one of our Lease Consultants to another city where the landlord’s office was located to personally meet and close the deal. While some landlords are easy to work with, others are not.

For the landlord, a Lease Assignment is usually a lateral move and does not improve the landlord’s position or income level. If the person buying your business is less experienced or financially weak, the landlord can, justifiably, become nervous or even deny the Lease Assignment application. Even though a Lease Assignment sounds relatively straightforward it can get complicated; if the buyer walks away, you will regret not doing it correctly. Normally, there will also be a Lease Assignment fee that must be paid to the landlord for going through the motions and for preparing the Lease Assignment documents – typically $200 to $2,000. It pays to have these papers reviewed by a professional lease consultant before you sign so that you understand

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your rights and the big picture.

Since the Seller/Assignor is normally still on the hook for the lease payments if the Buyer/Assignee defaults or closes the business, it pays to safeguard yourself and do the Lease Assignment correctly.

Sometimes a bit of coaching can make the difference between making a successful and smooth Lease Assignment or not, so be prepared and e-mail me if you have any questions about Lease Assignments. In leasing, franchise tenants don’t get what they deserve; they get what they negotiate.

For a free copy of my CD, Leasing Do’s & Don’ts for Franchise Tenants, please e-mail me to DaleWillerton@

TheLeaseCoach.com. Need a speaker for your next franchisee convention?

Bring in The Lease Coach and help your franchisees.

Dale Willerton is The Lease Coach, a Commercial Lease Consultant and author of “Negotiating Commercial Leases and Renewals FOR DUMMIES” appearing in bookstores spring 2013.

Got a leasing question? Need help with your new lease or renewal?

For more information: Phone: 1-800-738-9202 E-mail: DaleWillerton@

TheLeaseCoach.com Web: www.TheLeaseCoach.com

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With a range of mobile platforms for any device, when potential franchisees search for new possibilities, they’ll find you here.

Contact Jenn Dean, Senior Sales Executive, for global solutions on your multi-media advertising approach.

Email: jenndean@shaw.ca Phone: 250-590-7116

www.canadianfranchisemagazine.com Franchising USA

f ra nchisee in action

L iquid Capital

Finding Satisfaction in Finance

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Liquid Capital is a unique finance franchise, assisting small and medium-sized businesses within the communities they serve.

“Concentrate on working with your clients in ways that assist them every day. The factoring clients will come: you don’t have to be out selling factoring. When you focus on good, strong service, the business will grow.” an invoice. The collateral is the ‘right to payment’ for the goods or services rendered. Factors advance the majority of the invoice face amount, minus fees, right away and the remainder when the invoice is paid. A factor, unlike a bank, establishes a client relationship based on the company’s customers to pay, not on the client’s credit history. Factoring helps undercapitalized companies start up, stay in business, and grow.

Liquid Capital helps the seasonal and unexpected shifts in cash flow by providing an alternative funding source through funding accounts receivable.

With substantial financial resources at their disposal, Liquid Capital has the means to deliver funding quickly to their customers. They deliver funding through a financial system known as factoring.

Factoring is advancing money against

After spending over four decades in the finance sector, Ron Edinger returned from a ten-year stint in Central America where he served as the President of one of the first privately licensed asset-based lending companies throughout Central America. Edinger loaned to consumers and businesses and was an instrumental individual in brining the first US title insurance company to Costa Rica. Prior to this, Edinger had spent 25 years in the US working for McKinsey & Company, Cetus Corporation, Triad Systems Corporation, Covalent Systems Corporation and Matrix Pharmaceuticals Inc. serving in roles varying from Chief Executive Officer to Chief Finance Officer. “Someone counted once, and I think they estimated that in my career I’ve raised over $640 million for the companies I’ve worked in and served,” said Edinger. His long history in finance hasn’t been in the technical side of the business like accounting, rather, he’s been raising money and coming up with solutions for clients: the more creative aspects of finance. The move back to the US was motivated by Edinger’s desire to remain close to his children who would attend college in the US. While the high school education systems were very strong and comparable in Central America, Edinger’s children wanted to get a strong

college education and the US offered the best options for them.

It was in 2008 that Edinger’s Liquid Capital journey really began. Though his entire professional career prior to Central America had been based out of the Silicon Valley, Edinger and his wife settled in San Antonio, Texas in 2003.

Edinger was comfortable with the Liquid Capital concept of factoring, as his work in Central America was similar, “It’s not called factoring, but there’s more systems similar to factoring that happen in the European markets and outside of the US. One of the first deals we were doing was for a vendor in a supermarket chain in Costa Rica where we used similar factoring systems. I recall one time we even had a herd of cattle as collateral,” laughed Ron. So upon his return to the US, wanting to start something up that Edinger could call his own, Liquid Capital was a natural fit, in that sense.

Liquid Capital provides franchisees with comprehensive training. They have a strong corporate infrastructure and their back-office administrative support system operations are streamlined for franchisees. “One of the most attractive aspect of Liquid Capital to me, was the way they’ve set up our service center; the way they process invoices is very efficient and straight-forward,” explained Edinger. Franchisees are provided with resources including customized marketing materials, web-based seminars, a contact management system, and franchisee intranet. Liquid Capital provides marketing systems geared to marketing the individuals’ franchise in the most cost effective and profitable manner that will help build their referral base.

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L iquid Capital

The Liquid Capital Franchise Training Program begins with an intensive fiveday curriculum covering all aspects of factoring, accounts receivable management, security issues and credit related matters. Franchisees become well versed in the field and ready to grow in the role of local factoring expert. “In my case, the training was mostly a nice refresher of things I was familiar with.

The laws that we operated on in Central America were not unlike the laws up here. Most laws, excluding some real estate laws, are written like the US laws.

The only real difference, is that they’re enforced differently down there,” said Ron. Liquid Capital’s education program also includes 16 hours of professional sales and marketing training including extensive sessions on building referral sources, sharpening sales skills and techniques to manage and expand repeat clientele.

Franchisees are fully mentored for the first three months of their business by a seasoned Liquid Capital factoring mentor who “knows the ropes” of the business and will ensure your franchise gets off to a winning start. “When I started out in Liquid Capital, I had a mentor, a franchisee in Colorado and he was a huge source of help for me. He really made a difference in how smoothly the first stages of business ran for me,” Edinger recalls. From there, each principal is in constant collaboration with the Management Advisory Team, a group of highly experienced factoring professionals dedicated supporting all aspects of your business and guiding the ongoing success of your franchise.

Ron’s ability to speak and understand the Spanish language has definitely served him well with Liquid Capital. A large percentage of the companies he does business with are involved in Mexican imports and many customers are Spanishspeaking Americans.

Edinger has such an extensive background in financial and general management that he really enjoys working with small companies. That being said, his franchise received an award last year for being the largest Liquid Capital Company in

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the US and the network. “We recently lent about $20 million to a company,” shared Edinger. The experience Edinger has, now helps him mentor other Liquid Capital franchisees. He often mentors new franchisees in the Liquid Capital community. Now, after years of business, Edinger feels quite content with his work/ life balance, “I often get to combine my travels for Liquid Capital with visits to see my four grown children.”

If you have the desire to create and build a part-time business venture, Liquid Capital may be for you. If you excel at networking, aren’t afraid of hard work, and care about your local community and it’s development and success, Liquid Capital can be a rewarding business.

“Most of our success is built on the fact that we do a lot of mentoring with

our clients in conjunction to providing factoring services. I believe that’s why we’ve received awards from the US Commerce Department,” explained Ron. “Concentrate on working with your clients in ways that assist them every day. The factoring clients will come: you don’t have to be out selling factoring. When you focus on good, strong service, the business will grow. Factoring is a vehicle for helping manage the company and their growth. I think the best advice I could give to other Liquid Capital franchisees or prospects is don’t bother trying to figure out how to market factoring. What we do is market working with clients.”

For More Information: Phone: Brian Birnbaum 416-342-8199 Web: www.lcfranchise.com

Real Estate on the Rise

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feature As we quickly approach the halfway point of the 2013 calendar year, the fear and uncertainty that has obstructed our economic outlook for the past years is gradually clearing and industries that have lay dormant are slowly and steadily starting to progress.

While there are still some sizable obstacles until full confidence is regained, for the real estate industry, this time offers franchisees an opportunity to take advantage of the business opportunities that will be in increasing demand as the economy grows.

Real estate business opportunities concern anything involved in facilitating the transaction of land and whatever

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stands on the land. Some of these opportunities include Commercial Real Estate, Residential Real Estate, Property Management, Storage, and Broker franchises. This article examines what exactly these different avenues constitute.

In doing so, we also examine different franchises that have a long standing history of success in their given faculty within the industry.

Commercial Real Estate A commercial real estate franchise facilitates the transaction of offices, factories, retail locations and other industrial properties. Unlike the traditional industries such as finance and media, which used to drive commercial real estate in the past, we are now seeing demand for commercial space as new development and businesses emerge in the technology and energy industries. Other sources of commercial real estate that prove to be steady renters are temporary workers. Although the temporary worker sector cannot be relied on, what can is the

franchise industry at large. Franchises are expected to add 162,000 jobs in more than 10,000 new businesses in 2013 according to the International Franchise Association.

Residential Real Estate Franchises A residential real estate franchises main objective is to help homeowners connect with buyers. “For the first time in a very long time I’m optimistic. 2012 saw sales and prices stabilize and rise in a broad recovery across the country,” explained Dave Liniger. In 1970, less than one percent of real estate transactions went through a franchise. Today, it’s estimated that well over half go through established franchise brands.

For the tenth time in 14 years global real estate franchisor RE/MAX, LLC has been recognized as the highest-ranking real estate company in Entrepreneur magazine’s 34th annual “Franchise 500”. RE/MAX continues to grow, with unequalled presence in more than 85 counties around the word. Franchisees

A Buyer’s Choice Home Inspections provides a complete range of home inspection services to ensure you can make your home purchase with complete confidence. Inspection services offered are residential inspections, commercial inspections, pre-sale inspections, premium inspections, radon testing, WETT certified inspections, renovation deficiency, home maintenance, and expiring home warranty inspections.

All franchisees carry Errors and Omissions and Liability Insurance. A Buyer’s Choice provides specialized training courses for both Unit Franchisees and Master Franchisees. Unit franchisee training includes pre-training at home, home inspector boot camp, and home market training. The regional master

“The real estate industry is a six billion dollar industry that is full of dynamic tasks to keep any prospective franchisee on his or her toes and satisfied.” are given a four and a half day start-up training, ongoing training and continued support within the RE/MAX franchise system. The company features over 1,000 hours of training and major designation/ certification courses that are online, ondemand and available 24/7. Additionally, franchisees can access local, regional and national support in the form of webinars all the way through to individualized consultations from the head office.

Home Inspection Home Inspection franchises help people sleep easier knowing that the home their considering has a strong backbone and will not only live up to it’s surface appearances.

There are many details an average Joe and Jane may not pick up on without the help of a home inspector. Also, real estate agents will utilize home inspectors to ensure their clients have all the knowledge accessible to them when making their purchasing decision. Today, almost 95 percent of home sales involve the services of a home inspector.

franchisee training program is taught by Founder, President & CEO, Bill Redfern in a course called, “Franchising is an Exact Science” that walks master franchisees through how to manage franchises once established and how to handle daily business operations, accounting, etc.

Property Management Franchises Property management franchises facilitate property rentals through acting as an intermediary between owners and renters.

Real estate property management is a 28.5 billion dollar industry. “The general outlook for leasing in 2013 will be steady absorption and increasing rental rates. A new cycle is starting, and it is opening up new opportunities for tenants and landlords to make deals,” shares Rich Vaaler. Due to decreased accessibility to financing, many businesses that would have bought in the past are now leasing.

Renters Warehouse is one of the largest and most awarded property management companies in America.

The Professional Landlords refer to our team of management professionals dedicated to helping property owners rent or manage their residential real estate.

This company was named the largest and fastest growing property management company in Minnesota by Inc. Magazine.

Renters Warehouse was also named the “Best Places to Work: by Minneapolis St. Paul Business Journal in 2010 and 2011.

CEO and Founder, Brenton Hayden, has seen tremendous success and has thus been named one of the “Top Five Emerging Entrepreneurs” by Entrepreneur Magazine, in addition to being named the “Young Entrepreneur of the Year in 2010” in Minnesota.

Renters Warehouse handles any client problem relate to their rental properties from one home to hundreds of units.

Collecting rent, handling service and repair calls, being available at all hours for tenant emergencies: managing properties effectively takes skills and patience that only come from experience. The real estate property management services this franchise offers are tenant placement, monthly full service management, client set up, eviction protection plans and application/screening processes.

Storage Franchises Storage franchises enable individuals to entrust their belongings to a company who stores them for an amount of time until the owner has a place to put them. This is an industry that in 2012 made a combined annual revenue of 12 billion dollars.

These sales support the findings that this industry is one of constant demand and has a strong record of profitability year after year. The most successful of these models are mobile storage companies that will deliver the storage unit to where your belongings reside, allow you to fill the container, and they take the storage unit back to their facilities to store it for the customer.

Big Box Storage does just that. Their slogan is, “Storage made convenient.”

Their unique storage concept allows customers to fulfill their storage needs without ever having to leave their home

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feature or business. Big Box brings the storage container to the customer and pick it up when the container is ready for storage.

Customers are able to access their belongings seven days a week. These facilities are securely overseen with on-site staffing in an indoor facility with antitheft alarms. To make their services even more accommodating, Big Box also offers shipping to other metropolitan US areas right to your new home location.

Founded in February 2003, the company has grown to now offer over 60,000 square feet of storage space. By combining the stable, long-term growth of the self-storage industry with the higher convenience levels demanded by today’s consumers, a portable storage franchise is a logically successful business. No storage industry experience is required. Ideal candidates possess skills in the areas of marketing, communications, and business management.

Big Box is after franchisees with overall business acumen, entrepreneurial spirit and available investment. The company offers site selection assistance, exclusive territories, advertising and marketing support and materials, customized online portals, corporate website, software programs, collective buying power, equipment acquisition and leasing, comprehensive training, extensive manuals, communication tools, national customer support center, and inter-

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franchise container shipments.

Each franchisee is required to pay an initial franchise fee at the time of the franchise agreement signing. Such fee ranges from $45,000 to $70,000 and is based upon the estimated population of the franchisees proposed protected territory.

Mortgage Broker Franchises The US housing industry is making a comeback therefore, so is the business for brokers. These franchises allow you to help people finance their real estate dreams. A mortgage broker franchise acts as an intermediary between banks and homeowners or businesses.

Brightway Insurance is a franchise that provides more than just coverage; they provide customers with confidence. They provide the lowest quotes for homeowner insurance by shopping the market for their customers. Brightway offers the strength of national insurance products with the flexibility and accessibility of local offices. Their innovative franchise model provides franchisees with industry leading technology; top carrier choices for their customers; and a centralized back office to keep franchisees overhead low, paperwork to a minimum and growth potential unlimited.

Brightstars corporate office handles the servicing responsibility for your entire book of business, so you can focus on

increasing revenues. You are supplied with superior customer acquisition tools to make is easy to build your business such as a centralized service center, webbased paperless customer management, and customized communication system, comprehensive training, centralized accounting management and support. The company is constantly devoting time and attention to technological advances to outpace the competition.

The real estate industry is a six billion dollar industry that is full of dynamic tasks to keep any prospective franchisee on his or her toes and satisfied. Being a competitive industry that involves a customer entrusting a very important, emotional business transaction with the business owner; at the end of the day it comes down to the people. If you have a passion to satisfy people and enjoy working with customers the real estate industry can prove to be very fulfilling.

Combine that will a healthy dash of a competitive spirit and entrepreneurial ability and you may have found the right fit with real estate.

References: Joe Gose, Job Creation Needed to Boost Commercial Real Estate Franchisehelp.com Rich Vaaler, Leasing Market Outlook for 2013

Part 1 of 3

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Veterans in Franchising One Company. Multiple Brands.

Unlimited opportunity Service Brands International:

We’ve got your “6”

Franchise Financing for Veteran Entrepreneurs

VetFran FAQs Franchising USA

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V eterans in F ranchisin g S upplement P art O ne of T hree

Contents

44

30 Veterans in Franchising Mary Thompson, VetFran, Mr. Rooter, The Dwyer Group

32 Cover Story Service Brands International

34 Veteran Franchisor Profile Karen Powell, DĂŠcor&You

38 Five Reasons Why Veterans Make Great Franchisees Tariq Farid, Edible Arrangments

42 VetFran FAQs 44 Franchise Financing for Veteran Entrepreneurs David Nilssen, Guidant Financial

41

37

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Veteran Profiles

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V eter ans i n Fr anch isi ng

Veterans in

Franchising

“One out of every seven franchise businesses are owned and operated by veterans of the U.S. military.”

VetFran, a key initiative of the International Franchise Association since 1991, is making great strides and making a difference in veterans’ lives.

A little more than a year ago, the International Franchise Association launched “Operation Enduring Opportunity,” our industry-wide campaign to hire as team members, and recruit as franchise business owners, 75,000 veterans and military spouses, plus 5,000 Wounded Warriors by the end of 2014.

Since the launch of Operation Enduring Opportunity in late 2011, nearly 65,000 veterans have started careers in franchising – with more than 4300 as franchise business owners using discounts offered by VetFran members. There are now more than 540 IFA member companies participating in VetFran, offering incentives to veterans through our websites, events, and media outreach. And to date thousands of veterans have visited

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our Veterans Franchise Toolkit, offering online education and tools to connect to franchise ownership opportunities.

VetFran members continue to push forward by offering opportunities and discounts to our deserving veterans.

Franchising is good for veterans and veterans are good for franchising. With its rapid training opportunities, scalability, and need for operational execution and excellence, franchising provides an ideal structure to enable returning veterans to become leaders of and productive participants in the U.S. economy. In the next five years more than a million service members will transition out of the service.

VetFran members ensure our veterans have the power to prosper. As tens of thousands of service men and women return from deployment in Afghanistan and Southwest Asia, expanded opportunities are needed to ensure veterans and their families are able to transition into the civilian economy. Not only is this critical for the economic and social stability of veterans and their families, but it is an important component of the U.S. economic recovery as well as the future of our nation.

Mary Thompson

Veterans have a proven track record of

success in franchising due to the structure, systems-orientation, training, need for

operational excellence and support that franchising offers. One out of every

seven franchise businesses are owned and operated by veterans of the U.S. military, according to a recent study conducted

by PwC for the International Franchise Association Educational Foundation

based on census data estimates. More than 66,000 veteran-owned franchise

businesses in the U.S. provide jobs directly for 815,000 Americans, and generate more than $41 billion in GDP.

In light of all our veterans have done for us, this is the least we can do for them.

They deserve the opportunity!

Mary Thompson - VetFran Committee Member, CFE, President, Mr. Rooter, The Dwyer Group

Nicole Pennell Thanks to a Naval Reserve Officer Training Corp (NROTC) scholarship, Nicole Pennell was one of the lucky people who had a job immediately after college.

On May 22, 2000, she was commissioned an Ensign in the United States Navy. Her first duty station was Pensacola, Florida, for flight school. After learning that she became violently ill in Navy airplanes, Nicole was medically disqualified from the flight program and sent to Carrier Air Wing FIVE in Atsugi, Japan.

While in Japan, the majority of Nicole’s duties included public relations with the host nation on issues like aircraft noise, military exercise schedules, and VIP visits to the base and aircraft carrier.

Later, while deployed to the Persian Gulf

Profile

on USS Kitty Hawk at the beginning of what would become Operation Iraqi Freedom, Nicole was one of three officers responsible for providing access to a group of over 30 international media representatives, while maintaining the operational security essential to the success of the military operation.

Nicole served with CVW-5 until leaving active duty in 2004. She was introduced to the Dogtopia franchise when her own dogs attended daycare at the Tysons Corner, Virginia location while Nicole was at work, where she admits to frequently checking in on her dogs via the Dogtopia webcam. Impressed with the atmosphere and level of service, in 2007 Nicole began the discovery process, and was on her way to becoming a Dogtopia franchisee.

“The idea of going on a business adventure on my own was a little scary for me,” says Nicole. “I don’t come from an entrepreneurial family and I didn’t have a partner in the business, so I knew I was going to need a support structure to lean on. I would need people who understood

© Donna Foster

the build-out process for my location, permitting requirements, writing an employee schedule, training, etc. I didn’t want t to waste time re-inventing the wheel, when I knew I had already found a place I liked.”

Nicole sees a number of similarities between the military and franchising, primarily in the idea of a training manual or operations manual. “Someone has already done the hard work of figuring out how to do something so you don’t have to.” Nicole appreciates that there is still room for innovation, and speaks about the willingness of Dogtopia to work with franchisees to implement ideas into the overall franchise system. Nicole’s military background helped prepare her for franchising by teaching her how to be both a leader and a team player at the same time. Military service also prepared her for the hard work and dedication required in owning a business.

For more information: Web: www.dogdaycare.com

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V eter ans i n Fr anch isi ng

S e r v i c e B r a n d s I n t e r n at i o n a l :

We’ve got your “6” “Because of their efforts, SBI’s three franchise concepts all rank in the top 50 franchises for veterans and the top 10 percent of all the nation’s franchises in recruiting military veterans to their franchise business opportunity.”

Mike Riegel is the Director of Franchise Development for Service Brands International. He is also a Military Veteran.

Mike Riegal

“As a Veteran myself, helping others who served in the military and are systems oriented find their next career in franchising has been incredibly rewarding. I have been in franchising for the past decade and have helped many Veterans pursue business ownership through franchising, and Service Brands International has given their discount to 79 owners representing nearly $200,000 since they began this effort. I’m excited to lead a team of people who are committed to our veterans.”

SBI’s three brands have stepped up their Veterans discount by 140% over last year’s offer. They are taking $6,000 off their initial franchise fees and promoting opportunities through the Hiring for Heroes initiative, actively working on programs through the IFA’s VetFran committee and sharing the stories on our

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military heroes and franchise owners through public relations outreach and social media. Riegel says “We hope that 30% of our newly awarded franchises in 2013 are to Veterans. As they say in the field, SBI has got your “6”. Six thousand dollars to help any Veteran kick off their new civilian career.”

Buddy Rhoades spent 25 years in the military reserves with tours in Afghanistan and at the Pentagon. He’s a logistics expert; he can set up anything, anywhere.

While in the reserves, Buddy was a decorated sales manager for Verizon, at one time responsible for 32 inside sales reps. Now he’s taking his marching orders from ProTect Painters professionals because he knows that following the system is a straight line to success. He basically ran a small business while working for the Department of Defense— setting goals, managing projects, coordinating resources, advising people, maintaining morale, and measuring results—leadership skills that have served him well when battling independent painting contractors for market share in Roanoke, VA. ProTect Painters is one of three brands under the parent company of Service Brands International (SBI), a company with a solid commitment to supporting military veterans. With Molly Maid, Mr. Handyman, and ProTect Painters under their umbrella, the team at Service Brands International (SBI) thinks of themselves as a Military Friendly Franchise, a

designation confirmed by G.I. Jobs in its June 2012 issue. Because of their efforts, SBI’s three franchise concepts all rank in the top 50 franchises for veterans and the top 10 percent of all the nation’s franchises in recruiting military veterans to their franchise business opportunity.

SBI was formed in 1984 with the mission of helping franchise owners and customers realize their dreams by offering a high level of training and support through every step of the franchising process.

Molly Maid, Mr. Handyman, and ProTect Painters are leading brand franchises for achievers who have the confidence, skills, determination and initiative to steer their own career course with simple business models, innovative systems, and familyfriendly hours.

For military veterans looking for their next successful career, SBI’s franchise concepts are all solid choices. In addition to well-established brands, comprehensive training, and ongoing support, Service Brands International is proud to offer a veteran discount of $6000 to military veterans joining the Molly Maid, Mr. Handyman, or ProTect Painters franchise families.

Alex Roberts is the President of Mr. Handyman, and a VetFran Committee Member. “I’m so grateful for the service, patriotism and sacrifices made for our country so we can all enjoy the freedoms and opportunities we have in business and in life,” he says. “The selfless work of our military makes the American Dream a possibility and it’s an honor to be part of the VetFran Committee and see the focus on making the transition to civilian life easier.”

Like Buddy Rhoades, veteran franchisees transition smoothly into all three of SBI’s brands. For Ms. Jo McCabe, joining the Mr. Handyman franchise team was a logical step in founding her business career. Jo graduated from the U.S. Naval Academy in 1991 with a Bachelor’s Degree in Aerospace Engineering. She went on to earn an MBA from Southern New Hampshire University. She was on active duty for six years and retired as a Reserve officer. During her stint in the military,

Jo was an aircraft maintenance officer and served in physical security, overseeing the Navy’s northeast region where she managed 1,500 people. In 2008, while in the Reserves, she wanted to put her MBA and management skills to work as a business owner. After investigating several franchise businesses she selected Mr. Handyman for their buttoned-down systems, support network, and the flexible workweek schedule, which allowed her to meet her Reserve obligations. Jo’s success in the military has carried over to civilian life. She was named the 2010 Mr. Handyman Franchisee of the Year for her sales growth and profitability. Jo is one example of highly trained and dedicated military veterans who are excelling as Service Brands franchise owners.

Cynthia Giammarinaro also worked in aircraft maintenance before making the transition from the Marine Corp to Molly Maid owner. Cynthia’s military training prepared her well for running her own Molly Maid franchise. “Marines don’t sleep. Now I get to. But, something as simple as getting up early and coming into the office gets you ahead of the day.”

Teamwork is essential in the military and Cynthia found that quality transfers perfectly to her Molly Maid business as she works with her team of home-service professionals to serve and meet the cleaning needs of their satisfied customers.

“In the military, and sometimes with Molly Maid, you have to be ready for anything. As I advanced in the Marines, I learned what it takes to be a good leader, and I’m applying that in my business. I work really hard to set a balance between communicating expectations to my team and holding people accountable, while being understanding and providing an enjoyable work environment.” This is a theme often repeated among the veteran franchise owners of Service Brands International. The skills and characteristics gained through military experience lead to a successful franchising experience.

Buddy Rhodes, ProTect Painters

Alex Roberts, President Mr. Handyman

Jo McCabe, Mr. Handyman

For more information: Web:

www.servicebrands.com

Cynthia Giammarinaro, Molly Maid

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Fra nchisor Prof ile - K a ren Power, Decor&Your

Functional Design Ta i l o r e d t o S u i t t h e Individual

An Independent Venture too Strong not to Share

The space a person spends time in unarguably influences the way they feel, think and interact with others. The layout, the colors, the light: all of these things are very important factors to a persons overall wellbeing.

Franchising USA

Decor&You is a company committed to creating beautiful interiors that will have you loving the space you’re in. Karen Powell, the woman behind the Decor&You franchise, ensures that her vision and passion is communicated through every Decor&You across the nation. All local decorators have the power to simplify how people achieve comfort, style and value in their homes and businesses. Every Décor Designer takes pride in their ability to truly listen and provide design options that meet their clients’ needs, wants and investments.

Karen and her husband established Decor&You in 1994. Karen had spent ten years working within another design company when they went out of business.

Karen was driven to continue what she had been doing and with her husbands support they began to assemble the Decor&You concept. After three years of operating their business with overwhelming success the couple investigated expansion and chose the franchise route. Karen launched the Decor&You franchise in 1998. Today, there are 30 Decor&You franchises in 20 states and this year they are beginning to investigate taking this franchise international.

Decor&You is a design company that sells products and services. What’s different about this company is that they have a unique and proprietary methodology that helps their DecorDesigners create a space to fit the customers personality and style; not the decorator’s. Through their frustration-free StylePrint Design System and associated tools, they assist their clients in making quality, lasting, color-coordinated choices for their home

furnishings that reflect the customers’ style and practical needs while also delivering a beautiful, unique look. The whole package is the Style-Print-Design system. “We marry personal preferences and the rules of style. So the look, feel, and function all work together. We bring the expertise and we listen to enliven the space by expressing the personalities of our client.

We create designs truly unique to each individual,” explained Karen.

Why Change What Works?

Decor&You’s Style-Print-Design system has stood the test of time. Their system and business concept has stayed consistent since the company began in 1994. The attitude toward personalized designs and getting to know their customers is a refreshing change within the industry.

“We get to know our clients. Based on that individual and their needs, we make

“We marry personal preferences and the rules of style. So the look, feel, and function all work together. We bring the expertise and we listen to enliven the space by expressing the personalities of our client. We create designs truly unique to each individual.” recommendations based on our expertise and give them suggestions they would not have considered,” said Karen. “We educate clients on risks, green options, and the functionality behind our decorating.

We look for a design to best serve our clients.”

layout. Our goal with this project was

What has evolved, and continues to do so, are the companies programs, systems, and options. “We’ve revamped our website not long ago in order to have a more accessible

actual design is concerned, Karen and her

to present a new layout where our clients could find the information they needed much easier,” said Karen. On the web,

their new initiatives continue with more

outreach in the form of newsletters, blogs, and social media avenues. As far as the

corporate team continue to expand their

space plans, color plans, accessory plans,

and different service options. “Currently,

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Fra nchisor Prof ile - K a ren Power, Decor&Your

we’re going further into developing our options for our clients so that we can meet every need they have: clients can choose the whole package through to an a la carte service.”

Custom Designs with Quality Products While discount suppliers can provide short-term good looks, what Decor&You refers to as ‘curbside quality’, what Decor&You promises is professional decorating design, quality selection and proper placement. The company interacts with over 100 vendors who have been hand selected to ensure that Decor&You offers a range of products that can cater to most styles, qualities and price points. As a national decorating organization they buy at wholesale, without the overhead of a store, and are able to share these products at competitive pricing. The company is also proud to be committed to sustainable design. Decor&You is an active member of the Sustainable Furnishings Council, and all Decor&You decorators are Green AP Ccertified, which enables them to assess and specify appropriate products for your particular needs from a host of ‘environment friendly’ suppliers, many of whom manufacture in the USA. Franchisees interested in the Decor&You opportunity should note the five company values that are applied to every business relationship. “We respect everyone we interact with. There is no such thing as a ‘Decor&You’ look; we are client focused and bring our design expertise to meet the client. We have a big team here and we access every member needed to get the job done to the highest standards: teamwork is essential. Our business is all about helping

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World Market Group

people see the things they can’t on their own. We introduce possibilities that were invisible to our clients prior to meeting with us. Lastly, we want this experience to exude fun rather than being overwhelming and difficult,” shared Karen.

Individuals who align with those values must also be excited about the opportunity within this industry. Karen desires franchisees that can appreciate the systems and tools in place and recognize these tools as the powerful guides they are. “This is why a Veteran is an excellent franchisee for us. Veterans have been trained to work with tools and systems,” explained Karen. Additionally, Decor&You looks for people who dismiss any fear in regards to making a commitment to business and goal setting.

Franchisees must enjoy dealing with people. There is no need for a franchisee to have design knowledge: all of that will be taught. Opportunities to open a Decor&You franchise currently exist virtually all over this nation.

The Decor&You Company values continuous education. Each franchisee

has a mentor; sometimes for the business aspects of the business, other times for the design. The company offers certifications in all aspects of decorating and design and an array of tools to help with customer satisfaction and success. These tools are constantly changing in order to adapt to the changing needs of consumers. The annual conference Decor&You arranges is an opportunity to stay up to date with the companies new systems and trends. The corporate team takes their responsibility to remain educated on the international market trends very seriously and attends a number of trade shows and conferences themselves to support franchisees.

Decor&You is this nation’s leading interior decorating company. The home furnishings market is a $200 billion industry. Everyone has a home or workspace. There is unlimited opportunity for a passionate entrepreneur to succeed with Decor&You. If you want to facilitate change that will help people love the space they’re in, then this may be the franchise fit for you.

Justin Ruschell enlisted in 2003 and served 5 years in the USAF as an EMT/ Medic. He managed the care of wounded soldiers from down range through the CASF stop in Ramstein AB ,Germany.

He also worked the Geriatric and Pediatric Ward in Biloxi MS at Keesler AFB and also spent a period working the labor and delivery ward where he was able to see new life and not always just the pain of war.

Justin Ruschell During his time at Keesler AFB Justin served as part of the Hurricane Evacuation Team for all natural disasters needing military assistance. The team stayed behind in the aftermath and took care of patients, family members and the surrounding area.

When Katrina hit the gulf coast Justin describes that it was like a bad post war zone. “The destruction was insane and the surrounding families had no idea what to do.

While the National Guard went to New Orleans, our base took care of our surrounding neighborhoods. Without hot water for almost a month it was extremely hard on many people. We were able to get essential supplies needed, which helped

Profile

immensely, but still didn’t change the fact that the area had been decimated.”

After Keesler AFB Justin transferred to Nellis AFB in Las Vegas NV, where he worked the Family Practice Clinic until 2008. Although his career was brief by military standards, the things he experienced left Justin with a profound appreciation of the human spirit and American dream.

Justin’s military training is a great fit for his current career as a business owner because of the fundamental skills that he learned during his enlistment. Being able to make a command decision based on his surroundings, and also having confidence in those decisions is a big part of what has made him successful. Justin

understands that, just like in the military, “you are always as strong as your weakest link and that a great team can accomplish anything.”

As co-founder of Capital Funding Financial, Justin is part of a team that finances hundreds of franchises. He saw the need and the struggle that families were having while attempting to finance their franchise businesses. Justin’s goal is to use his knowledge and experience to achieve a positive outcome for as many franchisees as possible.

For More Information: Email:

Web:

Justin@Capitalfunding financial.com www.Capitalfunding financial.com

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E x p er t Ad v ice - Ta r iq Fa r id, CEO, Edible A r ra ng ements

Five Reasons

Veterans Make Great Franchisees One thing I have learned since Edible Arrangements® began offering franchises over a decade ago is that if a prospect meets all requirements and is a military veteran, chances are excellent that he or she will be successful.

Many of our most successful franchisees are veterans.

They have been through experiences most of the general public will never encounter; they are accustomed to high stress situations that can break a man or woman that has not been properly prepared to face them. From the first days of basic training, military veterans have been taught discipline, leadership and adaptability. Their military training has made them goal-oriented and they have been trained to organize teams to accomplish strategic objectives.

“You have to adapt, overcome and move forward no matter what.

That’s the only way to succeed in anything, and that’s especially true as a franchisee because it’s hard work.”

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These skill sets are exactly those needed to run a successful franchise. Within our own system, a perfect example is Maurice Welton. By the end of his six years of service, Maurice was an E5 sergeant in the Army, a cook and a food inspector. Today he has four highly successful Edible Arrangements® locations in South Texas.

“Everything that l learned in the Army about being all that I could be, became life skills and characteristics that really define who I am,” Maurice told me recently when discussing how his military training had helped him in the

business world. “The major emphasis is that you have to give your all, all the time, no matter what it is that you’re doing.

There is no such thing as ‘mission failure’ because it’s simply not an option. So you do whatever you have to do to succeed.

That expectation of success taught me fortitude and discipline and it gave me a ‘never quit’ mentality, and that kind of thinking really teaches you how to live life and run a business.”

As I considered our successful franchisees who are also veterans, I came up with five key traits that I believe give military veterans a head start on the path to successful business ownership.

Leadership The ability to inspire employees to reach quarterly objectives in a franchise is a must. And that requires leadership, which is at the core of military training.

The military depends on teamwork to accomplish missions and, in many cases, keep each other alive. The key to a successful team is strong leadership and in the military leaders must lead by example if they want others to follow.

“My leadership experience from the Army applies to my franchises because my employees and I are a team and we have to work together,” Welton said. “If you motivate your ‘troops’ to believe in what you’ve got going on and lead by example, then they’ll rally behind you and help you get there.”

Discipline Running a franchise business requires extreme discipline and an ability to follow systems and procedures. Veterans are comfortable doing this because following rules in the military is a way of life. And this discipline typically remains a core value of veterans throughout their civilian life. While their employees head out when their shift is over, franchisees often have to

work late into the night, finishing payroll, filling orders and preparing for the next day. They do this because they understand that it is the price of success.

I know from personal experience within our own system that veterans bring an exceptional level of passion and discipline to their business.

Adaptability Veterans are great at responding to unexpected challenges. It is another survival tactic learned during their service to our country. This lesson helps vets to clearly evaluate what is and what is not working and to change strategy with confidence.

“You have to adapt, overcome and move forward no matter what. That’s the only way to succeed in anything, and that’s especially true as a franchisee because it’s hard work,” Welton told me. “There’s always a new challenge to overcome, but if you’re ready for it, it’s always worth the effort in the end.”

Calm Under Fire The stress level does not get any higher than being stationed in an active war zone.

Therefore former military members are ready to handle anything that is thrown at them as a business owner. At Edible Arrangements®, that may be dealing with operational issues on Valentine’s Day, the company’s busiest day of the year, or reacting quickly when a supply shipment does not arrive on time. No matter the situation, a veteran tends to remain calm and examine the situation, then quickly find the best resolution.

Goal Oriented The military is a goal-oriented organization. The final objective always must be at the forefront of each soldier’s mind and this applies to a franchisee as well. Welton explained just how the military does this.

“When I was serving, they taught us to always set our sights two ranks higher than the level we were at so that we were always raising the bar for ourselves, and continually raising our standards for what we wanted to achieve,” he said. “That taught me that forecasting the future is really easy if you’ve got exactly what you want for your future in mind because once you’ve set your sights, you go out and make it happen. You can’t be afraid of failure, you just have to go and do it.

That’s how I’ve lived my life and that’s how I’ve been able to be successful with Edible.”

Despite having the qualities so needed in today’s business environment, veterans still have an unemployment rate of 7.6 percent according to the Bureau of Labor Statistics. It is a statistic that all of us at Edible Arrangements® want to help change. As a result, we have launched “Hero’s Welcome”, a new initiative designed to provide veterans with a path to franchise ownership and mentoring from other veteran franchisees once they have become part of our system. In addition, we have set a goal to hire at least 1,000 veterans in our locations nationwide and provide them with a path to a successful career.

We hope others within the franchise community will join us in this effort.

The brave men and women of our military are the ones who have made it possible for each of us to enjoy the American Dream.

I believe it is our obligation to help those who have sacrificed so much by doing what we can to give them the tools and support to achieve that dream themselves.

Tariq Farid is founder and CEO of Edible Arrangements International, LLC, which recently made a $125,000 contribution to the IFA’s VetFran program, and is committed to helping veterans make a smooth transition from military back into civilian life.

For More Information: Web: www.ediblearrangements.com

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Military Veterans Impress Us! We Want More!

Now offering

50% Franchise Fee Discount for any retired or former veteran with an honorable discharge!

the

GROUT Doctor

速

Since 1992

Find out more about this Home Based Business at

www.GroutDoctorFranchise.com or call 877-476-8800 ext. 722

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Leading National Franchise For Grout Repair

J.C. Sneyd

J.C. Sneyd was commissioned in the USAF in 1971 where he attended Undergraduate Navigator Training and Navigator-Bombardier Training. J.C. flew B-52 and RF-4C aircraft before transitioning to USAF Reserves in 1977. He served as Liaison Officer to Civil Air Patrol. With the rank of Lt. Colonel, J.C. retired from the Reserves in 1998.

Profile

After retiring from corporate life in 2009 as Director of Marketing and Sales, J.C. wanted to run his own business.

Specifically, he was looking for a way to incorporate his experiences from both military and corporate life into running a successful small business.

J.C. joined the Grout Doctor Global Franchise Corp. in 2009. He started two franchises, and later joined the corporation as a franchisor in 2012. J.C. says of his experience with Grout Doctor, “The Grout Doctor provided me with a low cost opportunity in a home-based franchise, in the home services industry, with a very flexible work schedule.” This was an ideal combination of attributes that inspired J.C. to be able to go to work for himself.

J.C.’s military training also played a key role, as it does for many veterans, in his decision to explore opportunities to

own his own business. “Confidence and

military bearing and demeanor provided me with an attitude that I could be very successful running my own business.”

The Grout Doctor looks for dedicated, performance-driven individuals and

couples who desire to enjoy the freedom of running their own low-cost franchise with the business and technical leadership and brand recognition of The Grout Doctor® behind them. Franchisees combine

their personal set of skills with business management and technical training

provided by The Grout Doctor training

center in order to provide customers with the best service, and enhanced pride in their homes.

For More Information: Web:

www.groutdoctor.com

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V eter ans i n Fr anch isi ng

VetFran

FAQs

What is VetFran?

IFA’s VetFran strategic initiative, founded in 1991, includes over 530 IFA franchisor member companies offering financial incentives, training and mentoring to veterans interested in small business ownership and/or a career path in franchising.

Why was VetFran founded?

VetFran was founded by the IFA in 1991 in an effort led by Chairman Don Dwyer, Sr. (USAF, Ret.), founder of The Dwyer Group, to support veterans returning from the Gulf War transition to the civilian economy.

What is Operation Enduring Opportunity?

As hundreds of thousands of young men and women return from Iraq and Afghanistan, including many wounded warriors, the International Franchise Association and franchised businesses have launched Operation Enduring Opportunity, a campaign to hire, and recruit as franchise owners, 75,000 veterans and their spouses, and 5,000 Wounded Warriors, through 2014.

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How does it work?

The IFA has partnered with the White House Joining Forces Initiative, VFW, the U.S. Department of Veterans Affairs, the Small Business Administration, the U.S. Chamber of Commerce and others in this unprecedented recruitment effort.

Members set company targets through the VetFran program, which offers recruitment tools and solutions as well as outreach to veterans.

How many veterans have chosen franchising as a career path?

One out of every seven franchise businesses are owned and operated by veterans of the U.S. military, according to a recent study conducted for the International Franchise Association Educational Foundation based on U.S. Census data. More than 66,000 veteranowned franchise businesses in the U.S. provide jobs directly for 815,000 Americans, and generate more than $41 billion in GDP. Since the November, 2011 launch of Operation Enduring Opportunity, over 64,000 veterans started careers in franchising, including over 4,300 new franchise business owners.

Why are veterans successful in franchising?

• Veterans come back with strong leadership skills and a thorough understanding of teams. Military experience includes leading people, improving processes, and accomplishing the mission. Just like in the military, in franchising, the mission is accomplished by the team.

• Franchises run on systems.

Implementing systems and following procedures with precision, emphasized in military training, leads to success in franchising.

• Franchises provide training. Veterans are trained and taught very specific skills to be used to carry out very specific

“Military experience includes leading people, improving processes, and accomplishing the mission. Just like in the military, in franchising, the mission is accomplished by the team.” tasks. Franchises have comprehensive training and support built into their opportunities. This means a veteran can enter into a completely new field, follow the franchisor’s proven business model, and receive the training, guidance, and support a new business owner needs to succeed.

• Franchises offer support. In franchising, you’re in business “for” yourself, but not “by” yourself.

Is the Wounded Warrior component distinct from the effort to assist non-wounded veterans?

Many disabled veterans are successful in franchising. The Wounded Warrior component focuses on industries that may be particularly suited to disabled veterans, such as franchises in Information Technology and tax preparation. Yet, given the range of disabilities and warriors’ ability to work through them, the VetFran program has a track record of placing disabled veterans in a wide variety of franchise roles and companies.

What should veterans consider when exploring franchise opportunities?

Seek out other veterans in the franchising business. Create and access support networks. Prioritize what’s important.

Consider different models (home-based vs. office-based, capital requirements, etc.) to find franchises that will be a good fit. Do research to understand the history of the franchise business and meet others who know and have succeeded in the franchise.

How can I find out about specific franchise ownership incentives for Veterans?

The VetFran Toolkit includes a Franchising 101 online course, a finance assessment, a workbook for prospective franchise owners and partner links. U.S. military veterans can also access the VetFran Mentor Network. IFA VetFran members list incentives and training opportunities by company in our VetFran Directory at http://www.franchise.org/ Veteran-Franchise.aspx.

What is the International Franchise Association?

The International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the franchise industry, which supports nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.

For More Information: Web: www.franchise.org/vetfran.aspx

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E x p er t Ad v ice - Dav id Nilssen, CEO & C o-founder, G uida nt Fina ncial

Franchise Financing for Veteran Entrepreneurs As U.S. veterans return home from active duty and transition back into civilian life, many are choosing to take the skills learned serving our country and invest those in a business that instead serves them.

The military trains our honored men and women to solve complex problems and thrive under pressure. Combine this with exemplary discipline and leadership skills, and it’s easy to see why veterans often make the best candidates for business ownership.

Many of our service men and women are discovering that franchising offers a viable alternative for these individuals. While many choose to become a franchisee to enjoy the freedom to be one’s own boss, other benefits include the security of a proven business model, built-in brandname recognition, and a proven system

Franchising USA

also provide them security in making this life changing decision. Really, the very nature of franchising sets new owners up for success.

“Really, the very nature of franchising sets new owners up for success.”

That said, many veterans may not have the cash on hand for startup costs, and getting a loan could prove difficult in times of economic volatility. Thankfully, there’s a little-known option that can provide veterans with 100 percent of the funding necessary to get their franchise up and running.

Rollovers as Business Startups (ROBS) allow individuals to invest their retirement funds into a new franchise without incurring any tax penalties. The process works like this: • A C Corporation is filed on behalf of the new franchise owner.

• A 401(k) is formed that will provide for the purchase of corporation stock.

• The new franchise owner rolls their eligible retirement account funds (up to 100%) into the new 401(k) plan.

• The new plan then invests into the stock of the corporation.

• The corporation obtains the business.

Better yet, these transactions are fast (some take just a few weeks to process); funds can be combined with other forms of financing including the retirement accounts of spouses and business partners; and the military Thrift Savings Plan (TSP) is an eligible type of account for this transaction.

What’s more, if the entrepreneur chooses to use retirement funds exclusively or a combination of retirement funds and cash to start their franchise, they can enter into the venture debt-free. This will allow them to use capital they would have devoted to loan interest for other things

such as equipment for their franchise or advertising opportunities.

The trouble is, many of our returning heroes have no idea that this option is available to them. Many may assume that debt financing is the only way to go because traditional firms deal exclusively with these types of transactions.

So, I’m here to get the word out—there is help available for our veterans to realize their dreams of franchise ownership and build a successful civilian life for themselves.

David Nilssen co-founded Guidant Financial and has been a featured speaker at over 350 national and international events, covering topics from entrepreneurship to small business financing. In addition, he and his

company have been highlighted in such media sources such as CNBC, Fortune Magazine, Entrepreneur, CNN and The Wall Street Journal. In 2007, the Small Business Administration (SBA) named Nilssen the National Young Entrepreneur of the Year and the Puget Sound Business Journal named him one of the top 40 businesspeople under 40 years of age. In both 2008 & 2009, Ernst and Young named him a finalist for their coveted Entrepreneur of the Year award. In 2011, David released a book called Making the Jump into Small Business Ownership and was named one of the Top 100 Small Business Influencers.

For More Information: Web:

www.guidantfinancial.com

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DON’T MISS OUR NEXT ISSUE!

Part two of a three part special supplement featuring veterans in franchising.

Advice from the experts helping veteran franchisees succeed.

Opportunities are still available in our May and June Veterans in Franchising special supplements.

Share your story with new franchisees from the Veteran community

News and information specific to veterans searching for a fresh start in franchising.

Contact: Jenn Dean, Senior Sales Executive jenn@cgbpublishing.com 250-590-7116

Franchising USA

Receive Good Training

T echniques F ranchisors U se to M ake S ure

Y ou ’ re R eady to O perate Y our N ew B usiness you need to understand how to manage the business, how to hire and fire employees, how to advertise, how to do the books, how to make deposits, and a thousand other small details. As a franchisee you will also have to do everything in compliance with the consistency standards of the franchisor. But, not all franchisors provide the same level of training to their franchisees or prepare their franchisees for success.

Sarah Kulbatski

Franchisors use the operations manual, along with other tools including, equipment manuals, software manuals and PowerPoint presentations, to train franchisees on the day-to-day operations.

When prospective franchisees begin to separate one franchise opportunity from another, one of the items they need to examine closely, is the training the system will provide them. Running any business is a complex undertaking. Besides having to know how to prepare your products or deliver your services to your customers,

On the surface, when it comes to training, many franchisors look alike. On average, they will be providing between one to five weeks of training to you as a franchisee.

But, what if those five weeks of training are no more than working in an existing operation? Who trains your management team and your line staff? What happens when new products are launched, or some of your management team quits and you need to replace and train your other personnel? This is when the difference between a great training program and a surface training program becomes critical.

You can tell the difference between great franchisors dedicated to your success and the ones only interested in selling you a franchise by their dedication to training.

Great franchisors make certain that before the first customer comes through your door, not only are you prepared, but so are your manager, assistant managers and your entire staff. Equally important to the great

franchisors is that as the system changes and new products and services are added, they make sure you and your team have the new skills required to be a success.

You should always try to meet with your future franchisor at their headquarters and plan to spend considerable time with their training department, prior to committing to the franchise. Some of the questions you should be concerned with (answers to some can be found in the franchisor’s disclosure document) are: • Where does the training take place?

How long is the initial training program and what, if any, are the additional costs that you will need to pay in addition to your franchise fee?

• Who does the franchisor require to attend training? Are there criteria established for ensuring that you are prepared to operate the business once training is completed? Simply spending time in the franchisor’s training program may not be sufficient.

The best person to tell you if you are ready for the challenge of operating the franchised business is the franchisor.

• Can you bring your initial staff to training? If they are not on board with you yet (which is fairly typical), can they attend training classes after they are hired? How much will this additional training cost you?

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ex per t advice

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Sarah Kulbatski, Director, JT Corporation

ex per t advice

• What is in the training curriculum?

How much of your time will be spent in the franchisor’s headquarters in classroom training, and how much time will you be spending in an operating location? What subjects are covered and in what depth? Will you only learn how to make the product or deliver the service, or is the program comprehensive enough to teach you the financial, marketing, and operational aspects of the business? If you are preparing food, will be you be trained in safe food handling and preparation, and will your franchisor provide CPR training? How much management training will you receive?

• Who conducts the training? Are they line personnel brought in for the day or week, or have they been trained to be teachers? Remember, the goal of training is not for you to be impressed by the trainers; the goal is for the trainers to provide you with knowledge, and to do this, they must know how to teach. You need to find out the background of the training team and their qualifications.

• How comprehensive is the training material? If you will be expected to train your staff before your business opens, what tools does the franchisor provide you? What training in teaching techniques does the franchisor provide you? Don’t forget that the business will change over time and products and services will be added or modified. Is your franchisor prepared to provide you and your team with training as the system changes? How will they do it, and at what cost?

• What happens once the business is ready to open? Franchisors dedicated to training understand there’s a difference between classroom training, working in a training facility, and actually operating your own business with your own customers. During the initial days or weeks after your franchise is open, they’ll have a training team working with you and your staff, honing your skills, reminding you of the lessons you learned at franchise headquarters. It’s

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“Remember, the goal of training is not for you to be impressed by the trainers; the goal is for the trainers to provide you with knowledge, and to do this, they must know how to teach. You need to find out the background of the training team and their qualifications.” an invaluable extension of the initial training program as there’s nothing more valuable than learning the business in the real world.

Now Comes Your First Crisis A crew person quits and you have an operating business, customers coming through the door, and a warm replacement body just won’t do it. How is the new replacement staff going to be trained to the standards you need? Most franchise systems expect you to train your new staff. But the good ones, in addition to providing you with training techniques to ensure you have the necessary training skills, also provide you with training tools.

Those on the cutting edge of technology have Web-based learning that allows you to sit your new crew member in front of a computer to learn many of the necessary skills to do their jobs. Others provide you with similar training modules on CDROM. But learning online or through the use of a CD-ROM can only provide them

with some of the necessary knowledge.

Good franchisors also provide you with written training tools for each skill the new staff members will require. These written tools not only provide new staff with the necessary information, but also break the tasks into small steps that can be measured to ensure that your employees are really prepared. When the franchisor provides training to your entire staff, they reduce their costs for providing support services later on because your staff, once trained, has less need to continually ask questions that were covered during the initial training.

Training Never Ends Training is ongoing, thorough and measured for you, your management team, and your crew. Great franchisors regularly hold advanced training programs for management, giving them skills that can only be learned once they have real world experience. They provide regional and system-wide training programs when

Expect Your Initial Training Program to Cover: • Standards and procedures contained in the system’s operating manuals • Technical information on products and services you’ll provide under the brand • Food safety and CPR (for food franchisors) • Leadership and business management, including problem solving • Training the trainer (techniques for ensuring your staff is trained) • Managing the customer experience and brand positioning (how the customer should feel when they hear the brand name) • Marketing, advertising and communications • Merchandising and pricing methods • Safety, security, cleaning and maintenance • Labor management (recruiting, hiring, new products or services are introduced.

They expect their field consultants to observe your staff during their periodic visits to your location and help you assess the quality of your employees and, when necessary, help you improve their performance.

Training is the hallmark of great franchise systems. Hopefully, as a franchisee, you selected well and found a system that dedicates its resources to training. But as a franchisee, it’s also your responsibility to take advantage of the training provided by the franchisor, look for training programs outside of the system that will benefit you and, most important, make sure your staff is trained, too. The goal isn’t only to provide you with information on

how to run your business to the system’s standards, but also to provide you with an understanding of the system’s philosophy so you’ll intuitively know what’s right and what’s wrong.

Remember, just because one franchisor has a longer training program than another doesn’t mean that their training is better.

You need to understand what is provided to you in the initial training and what happens after your business is up and running.

Sarah Kulbatski is director of JT Corporation, a company specializing in franchise consulting and risk management. For more information contact her: via email at jtfranchising@ me.com or visit www.jtfranchising.com.

firing, supervision, and motivation) • Vendor relations (purchasing, receiving, stocking, and inventory management) • Financial management and the use of the company’s point-of-sale and management information systems

Sarah Kulbatski is director of JT Corporation, a company specializing in franchise consulting and risk management.

For more information: Email: jtfranchising@me.com Web: www.jtfranchising.com

Franchising USA

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ex per t advice

Edward Levitt, Sr. Partner, Aird & Berlis LLP

C anadian E x pansions of U S F ranchise S ystems :

Trade Marks “The value of a trademark to a franchisor cannot be overstated. A mark that distinguishes the goods or services of a franchisor provides a clearly visible platform upon which reputations and successful businesses are built.”

Edward Levitt

In academic circles it is said that university professors must “publish or perish”. In franchising it could be said that franchise systems must “expand or expire”.

Growth and expansion go to the very essence of franchising.

Franchising is chosen over other available distribution methods because of its ability to grow the business quicker, with less capital and through broader geographical territories. The Canadian market, being close, familiar and similar has always presented a unique opportunity for U.S. franchisors to begin their international expansions.

As a franchise system begins to expand beyond a few units and its market of origin, the franchisor faces an ever increasing array of obstacles and

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challenges. Expanding a franchise system is not “rocket science”, but it has its own unique dynamics and requirements.

Success in a franchise expansion follows the establishment of a firm foundation, careful planning, thorough market research and the evolution of a solid head office management capability.

Many of the issues in a franchise expansion will be the same, whether or not the expansion is from large cities to small towns, from region to region within a state, from state to state or from the USA to Canada. Post-mortems on failed franchise systems often reveal that the failure was caused by mistakes made in expansion, which were readily foreseeable and avoidable.

Canada should be considered by most franchisors as being a relatively easy jurisdiction in which to franchise. The majority of franchisors choose the simple route of contracting with one or a few master franchisees or area developers and licensing them to expand the franchise system throughout Canada. This approach avoids a number of tougher issues such as

employment laws, corporate structuring, Canadian taxes and filings. This article and a follow-up article will outline the matters that U.S. franchisors should consider before expanding an American franchise system into Canada.

Trade Marks The value of a trademark to a franchisor cannot be overstated. A mark that distinguishes the goods or services of a franchisor provides a clearly visible platform upon which reputations and successful businesses are built.

Franchisors planning to enter the international marketplace will need to build and protect trademark portfolios in each country where they expand. In Canada, the Trade-marks Act provides the frame work in which that brand expansion takes place.

A trademark is a word, name, symbol, design, slogan, package design or combination thereof that serves to identify and distinguish a specific product or service from others in the market place or in trade. Unconventional identifiers such as sound, smell, colour and motion can be trademarks as well in some circumstances.

The term trademark (used with goods) is often used interchangeably to identify a service mark (used with services) because the legal requirements with respect to both types of marks are largely the same.

Trademark Protection Regimes There are two protective regimes for trademarks in Canada– the common law of passing off and the statutory protection under the Trade-marks Act. Many common law jurisdictions have a dual protection system such as this but civil law jurisdictions often only have statutory protection. The fundamental purpose of both the common law of passing off and statutory protection is to protect acquired rights, whether such rights are acquired by use or registration. These systems offer different types of protection which is critical to understand when deciding whether or not to register a trademark.

PASSING OFF PROTECTION

TRADEMARK REGISTRATION PROTECTION

Requires mark to be used and to have gained a market reputation before protection can be claimed

An application to register a mark can be filed well before use; no market reputation need normally be shown to derive from the use

Protects a mark only in the jurisdiction of its reputation

Country-wide protection; can also be used as the basis for corresponding applications for similar protection in most other countries in the world

Requires proof that a defendant misrepresented its product, service, or business as, or connected with, the plaintiff’s; also requires proof of consequential injury to the claimant’s goodwill

Protects the mark for the whole range of goods or services for which it is registered, without proof of damage; can stop the use of different, but confusingly similar marks, for different business, even if the defendant prominently disclaims any connection with the two businesses

Requires the plaintiff to prove the existence and extent of its reputation each time an action is brought

Registration is presumed valid for all wares and services for which it is registered until expunged; protection continues though the mark is little used or known

Does not prevent a mark’s image from being diluted or tarnished; a misrepresentation of trade source must first still be shown

Directly protects a mark from any depreciation of its goodwill, even without any misrepresentation

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ex per t advice

Edward Levitt, Sr. Partner, Aird & Berlis LLP

10. Registration will serve as notice to others of owner’s rights thereby encouraging them to select nonconfusing alternatives.

The expansion imperative is an ever present reality for franchisors. The difference between success and failure in expanding into the Canadian market is often the degree of planning and research the franchisor is prepared and able to do before an expansion initiative is undertaken.

The decision of whether to register your trademark therefore depends largely on factors such as: - The quantity of wares and services sold and expected to be sold in Canada or the target country in association with the trademark; - The length of time the proposed trademark will likely be used in Canada or the target country; - Whether related similar trademarks are already registered or pending in the Canadian Trademarks Office or the Foreign IP Office; - The inherent distinctiveness of the trademark – it is more important to register unique trademarks; and - The possibility that a competitor will attempt to infringe the trademark – it is less expensive and onerous to enforce a registered trademark.

Ten Reasons to register a Trademark in Canada: 1. Registration can cost as little as $1500.00.

2. A registered trademark gives the owner the exclusive right to its use throughout Canada even though the

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registered owner has used it in only one location.

3. A registration is good forever provided a nominal renewal fee is paid and the trademark continues to be used.

4. A registered trademark is a prerequisite for business expansion through licensed franchisees.

5. In a legal proceeding for infringement of a registered trademark the registered owner is deemed to have exclusive rights in the trademark and the onus is on the defendant to prove otherwise. This gives the owner of the registered trademark a significant tactical advantage.

6. A registration is a defined right which can be asserted against others.

7. As a definable right it will enhance the value of the business by more clearly defining goodwill as an asset.

8. A registration is a piece of property that can be bought and sold like any other asset.

9. The registration will be recorded in the Trademarks Office. Confusingly similar applications will be denied by the Office without the owner’s involvement and at no expense to the owner.

While there are no guarantees of success, a franchisor can dramatically increase its chances through careful and thoughtful research and planning. Despite the many similarities between operating in the American and Canadian markets, a number of important and unique Canadian legal issues must be considered when crafting an expansion plan. In the second instalment of this article, featured in the upcoming May issue, we explore how tax considerations, franchise disclosure legislation, the special case of Quebec, and supply chain issues must be carefully examined. Failure to do so could result in the time, effort and resources directed toward a Canadian expansion being siphoned away by civil liability and regulatory issues. Performing due diligence up front, recognizing and planning for potential problem areas is the key to success.

Edward (Ned) Levitt is a senior partner of Aird & Berlis LLP, Toronto, Canada, and chair of its franchise law group. He served as General Counsel to Canadian Franchise Association from 2000 to 2007 and, as a member of the Ontario Franchise Sector Working Team, was instrumental in the creation of Ontario’s franchise legislation. Among his many publications is Canadian Franchise Legislation published by Butterworths/ Lexis Nexus.

For More Information: Phone: 416-865-4628

Page 53

An Expert Who Sees Your Home More Clearly More than ever, home buyers, sellers, Realtors, lenders, and investors, recognize and promote the value of a quality home inspection.

Along with expertise, information and understanding, a home inspection provides the potential home buyer with the peace of mind essential to make this important decision. Today, an estimated annual five million home buyers seek out this confidence by having a home inspection contingency placed in their contract prior to purchasing a home.

Bill had been considering a transition from corporate American for about two years trying to figure out what his next adventure would be. Bill Gray, a retired Air Force Reserve Lieutenant Colonel, subscribes to veterans publications to stay informed. In one of those publications there was a feature on “Career Transitions” and Home Inspection was one of the featured opportunities. In the article two recently retired military members had purchased Home Inspection franchises. Their stories interested Bill and this prompted his own research and what he didn’t know at the time, would become a new adventure.

Bill’s decision to choose a WIN Home Inspection franchise had two factors: business and technical. On the business side he chose Home Inspection because it

Franchising USA

f ra nchisee in action

Bill G ray, W I N H ome I nsp ection

f ra nchisee in action

Bill G ray, W I N H ome I nsp ection

gave him the opportunity to maximize his sales and marketing skill set to develop and promote the business. With home inspection you can remain solo or you can expand and hire additional inspectors.

With the latter model Bill would have the opportunity to utilize his management skill set. On the technical side of the business, Bill had always been interested and involved with home construction and remodeling. All of this meant one thing: Bill chose a business where his sales, marketing and management skills could be utilized and he could also be “hands on” providing a personalized valuable service to his clients.

Bill’s career path was spent primarily serving two entities simultaneously; the Medical Device industry and the United States Air Force. “The majority of my Air Force career was spent as a Navigator on C-130 aircraft, most notably, 16 years spent in the Hurricane Hunter squadron at Keesler AFB in Biloxi MS”, shares Bill.

He began his medical device career as a sales representative and was promoted to various sales management positions including Regional Vice President. “In corporate America every year is met with a demand to produce more than last year

Franchising USA

typically with no new resources or tools but increased limitations and barriers.

During my 25+ years on the corporate treadmill I was held accountable to cultural evolution changes that can hinder versus enhance an organization. However the demand for performance constantly increases even though those new barriers have been created,” explains Bill. “You get to a point where you realize things will never change and your job is running your life. I wanted to be an Entrepreneur where I could have more control over my life.”

Ready for a New Path So after extensive research and consideration, Bill decided WIN Home Inspection was right for him and he joined the team committed to a vision of solutions, relationships, success, growth and professionalism. Bill was fortunate because the same month he signed the agreement, he was able to go to training at the home office in Alabama. Before Bill left for training there was a long list of tasks to accomplish: what type of business entity (Inc., LLC, Sole Proprietor, etc.), business licensing, establishing a relationship with a business banker, and all those decisions that determine what

your franchise will look like. His business banker was a major asset in getting the business off the ground.

WIN Home Inspection provides services geared towards Real Estate agents, home buyers, home sellers, and for new construction. Some of the services they offer clients are pre-listing inspections, home buyer inspections, environmental screenings and pre-offer inspections to name a few. Bill believes that with proper investigation, every potential franchisee can make an informed, accurate decision about whether or not this franchise is a good fit for what they want to accomplish in business. “Interview some of the franchisees and spend time with them in the field to get a true understanding of what they do. Reading and talking on the phone is great but there is no replacement for ‘walking the talk,’” suggested Bill.

Win has a two-week interactive training program held in Madison, Alabama at their WIN training location. WIN is approved for pre-license training in many licensing states. The training includes technical inspection training, technology training, marketing and customer service training, and business operations and management training.

because you bought a franchise.”

“You get to a point where you realize things will never change and your job is running your life. I wanted to be an Entrepreneur where I could have more control over my life.”

Additional training is dependent on the state where you will be licensed and their requirements. Continuing education is critical for the home inspection industry and can be obtained through numerous resources. WIN requires a minimum of 20 hours of annual continuing education but in Bill’s case, being a hungry learner, he typically achieves more than double that requirement each year.

The experienced leadership team at the Home office is responsive and provides centralized support on any questions that may come up for a franchisee in the field. You have individuals available with expertise in the areas of home inspection, real estate, marketing, technology, and business operations.

Also, WIN organizes an Annual Conference and Expo for franchise owners, employees and spouses, which includes further in-depth technical, business operations and marketing sessions. This event allows you to meet exchange ideas and build camaraderie with fellow WIN franchise owners, as well as network with industry specialists.

Be Persistent and Take the Driver’s Seat in Achieving Your Goals Bill’s experience in the industry and in starting a franchise has given him some valuable lessons that he was willing to share, “Understand that just because you are buying a franchise you are not guaranteed business. When you buy a franchise you are purchasing a brand name. There should be many tools and resources for you to access associated with the franchise. You should exploit resources the brand has available, after all you are paying for them whether you use them or not. But do not limit yourself to that resource pool. Be creative and resourceful and consider any opportunity that will help grow your business but ensure your creativity does not conflict with the brand.”

Secondly, Bill believes in the strength of a plan, “Create a plan, work the plan and do not give up. In the beginning there will be many frustrations. Be persistent and realize it does take time. Real success is not an accident and it will not just arrive

Since becoming a WIN Home Inspection owner the man hours he spends at work may not have changed much, however there are some major differences in Bill’s life that have led to his overall satisfaction.

“It has been said that when you become your own boss you will never work any harder,” exclaims Bill. “That reality was not intimidating because I was already working 60-70 hours over six or seven days a week. The difference is I am doing what I want to do and I own it.”

A positive factor of Bill’s work life is he is at home every night. In the corporate world Bill was in hotels two to four nights each week. Meetings typically involved weekends and Sunday afternoon travel to be in place for an early Monday morning commitment. He was so happy to share that those days are behind him and he’s leaving them in the past! “People typically relate work/life balance with work and what do you do for fun. I embrace the quote, ‘When you do what you enjoy you never work another day in your life,’” said Bill.

The WIN brand is strong, recently celebrating their 20-year anniversary.

Small companies and new startups come and go. With a strong and experienced brand like WIN, a potential franchisee or a client considering using our services should feel confident knowing we must be doing something right.

For More Information: Phone: 866-430-9308 Web: www.winfranchising.com

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ex per t advice

Jack Eberenz, President, Franchise Integration

Lessons from the Geese Sometimes all we have to do is look to nature to learn more about business.

As each bird flaps its wings, it creates an uplift for others behind him.

There is 71 percent more flying range in V-formation than flying alone.

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• Lesson: People who share a common

direction and sense of common purpose can get there quicker.

In today’s franchise market the

correct approach to franchising is a

comprehensive system of integrating the expectations of the franchisee with the

goals of the franchisor. Every franchisor

should be concerned about the value that the franchisee believes (in other words “perceives”) he/she is receiving for the royalties paid. Contractual obligations are one thing, but a properly managed franchise system can put the Franchise Agreement aside, and hopefully never looked at until it’s time for renewal, because the franchisee perceives the value

“Shared leadership and interdependence give us each a chance to lead as well as opportunities to rest.” received is worth more than the royalties paid.

Whenever a goose flies out of formation, it quickly feels the drag and tries to get back in position.

• Lesson: It’s harder to do something alone than together.

Making franchisees successful is a constant goal and must be pursued with every resource you can think of.

Franchisors develop strategies and benefits for each franchisee to earn their royalties.

It might be negotiating reduced costs for materials, or finding new avenues for them to make money such as new products or services. Maybe it’s reviewing their business procedures to make them more efficient or maybe it’s just listening.

Constant communication that is positive and proactive is very important.

When the lead goose gets tired, it rotates back into the formation and another goose flies at the head.

• Lesson: Shared leadership and interdependence give us each a chance to lead as well as opportunities to rest.

Franchisees are able to lead when they have great ideas on improving the business, in a team environment sharing that information helps everyone achieve more.

The geese in formation honk from behind to encourage those in front to keep up their speed.

• Lesson: We need to make sure our honking is encouraging and not discouraging.

Negativity in a franchise system is like

the old saying, ‘a rotten apple can spoil the whole barrel.’ Everyone needs to encourage the franchisor and the other franchisees to get better.

When a goose gets sick or wounded and falls, two geese fall out and stay with it until it revives or dies. Then they catch up and join another flock.

• Lesson: Stand by your colleagues in difficult times as well as in good.

Sometimes a franchisee may have a negative turn in their business or in their life. Everyone should pitch in to help them get back in formation and reach their goal. That help can take many forms but sometimes it can be difficult so we need to remember that it’s time to turn to the wisdom of a great musical artist and as the song goes, ‘Stand by Your Man’…or woman.

These lessons are some of the most popular ones that I have used in business.

For 2013 make your corporate goal to find ways to support and enhance your franchise. Then business will become more fun and you will not only love what you do but sleep much better. I hope it helps you to run a better organization.

Mr. Eberenz has over 40 years of leadership and executive experience.

In a broad executive career he has experience as a General Manager, President, Chief Financial Officer, and Chairman of the Board in companies nationwide. Mr. Eberenz has been a key advisor to franchisors since 1981 drawing from his experience as a franchisee and President of a Franchisor. He holds board positions with regional, national and international

Jack Eberenz

franchisors and is the President of the Arizona Franchisor Association. He holds a B.S. Degree from the Syracuse University School of Management.

Mr. Eberenz has very broad franchise experience and serves on the board of several national or international franchisors including Realty Executives International, Precision Door Service and The Hat Club. As clients he has a number of emerging franchisors from ones that are currently organizing to retooling some that have hit a bump in the business road.

As an outspoken advocate of franchisors maintaining their principles and vision throughout their business growth Mr. Eberenz has spoken to many groups on franchising and the principles based around “Perceived Value”. He is the Chairman of the Arizona Corporate Governance Institute which assists corporations in using statutory or advisory boards to increase their profits and cash flow.

Other Board affiliations include the Board of Directors of Beatitudes Campus of Care, Merger/Acquisition Roundtable, Arizona Business Leadership, Valley Advisory Group and Business Advisory Services.

For More Information: Web:

www.franway.com

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women in f ra nchising

Suzy Boerboom, Co-Founder, CEO, Welcyon, Fitness After 50

P ioneerin g the W ay for

Fitness after 50

Suzy Boerboom has spent her entire life in the healthcare industry.

Her first position out of nursing school was as a charge nurse in a state hospital where her placement was on a unit full of mentally ill men from the penitentiary.

“I started off with a bang right from the start. At the age of 23, I founded the mental health technology program at Southeast Community College in Lincoln, Nebraska. I’ve always been someone who starts new things,” said Suzy. From there Suzy served in long-term care as an instructor, director of nursing and nurse consultant.

Suzy Boerboom

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Boerboom’s specialty has always been taking a concept and turning it into a reality. She went on to serve as the Director of Customer Service and Education for 112 long-term care facilities.

Suzy spent four years operating six Curves clubs. It was then that Suzy experienced the deep successes people gain in all aspects of their lives through exercise and fitness. This realization Suzy and her husband both shared was one that would take their lives on an entirely new adventure.

“I’ve really been sincere about wanting to find an opportunity wherever I was to help people and develop a servant leadership attitude. So everyone I deal with is my customer, especially my employees and my team.”

“I’ve seen a lot of people age, get weaker and develop health problems. I saw firsthand what research has been telling our nation recently: fitness and exercise was the answer for strength in our later years. Exercise was the key for eliminating loss of independence and health concerns in order to live a happy vibrant life,” explained Suzy. In 2009, Suzy and her husband started with that knowledge and watched the seed of their dream grow into Welcyon fitness: a welcoming fitness center where people over 50 improve their strength and enhance their overall health. “It’s a very big paradigm shift from a loud, big box gym. There comes a time in our lives when we’re not as comfortable working out around people who are in their twenties and thirties in spandex, and that’s where Welcyon carves a distinct niche in the marketplace,” said Suzy.

Suzy grew up having a father who was in business. She watched the satisfaction he gained from building his business, “I used to help him with all kinds of tasks.

He gave me my first job in the movie theatre and variety store he owned. My dad showed me that building a business is really hard work: it can be really scary at times but the payoff is huge. You

get the satisfaction of knowing, ‘I built something that was helpful to people; I made a difference.’” So when Suzy and her husband started entertaining the idea of starting a business: a fitness club designed specifically for people 50 and over, she knew the road ahead would be filled with work. Regardless, Suzy’s drive and compassionate nature propelled her forward.

Fitness With the Mature Crowd in Mind The business they created, Welcyon, is dedicated to providing a welcoming and personalized fitness environment where people 50 and over can achieve their best health. “My husband and I are in the 50 and older demographic. We have three daughters and grandchildren and they, along with everything we do on a daily basis, are huge motivators to stay strong. We don’t want to give up racing around the block with our grandchildren,” shares Suzy. Welcyon provides customized workouts to the largest growing demographic in a nonintimidating environment with fitness coaches who promote safe workouts. The routines emphasize flexibility, aerobic and stretching movements. There is a social

component because relationships and a sense of belonging is key to overall health.

The Welcyon franchise has been built on the values of honesty, integrity, teamwork, and servant leadership. Welcyon is inspired from the words ‘wellness’ and ‘halcyon’. Halcyon is a fable bird who brought peace and calm to the wild winds and waves of winter. “We were debating on many names but this one stuck out. We thought, ‘That’s what Welcyon will do: get people fit in a joyful, tranquil environment and they leave with energy and improved health,’” said Suzy.

A Big Heart Behind the Big Company Suzy attributes her determined, heartcentered attitude towards the way she was raised, “My parents were two wonderful, caring people with strong value systems where being kind to others mattered.”

This moral code that is so engrained in Suzy motivates her to pay attention to the small things such as buying staff bright flowers on a cloudy day or writing a letter to a staff’s mother informing her of her child’s noble efforts within her company.

“I’ve really been sincere about wanting to

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women in f ra nchising

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womem in f ra nchising

Suzy Boerboom, Co-Founder, CEO, Welcyon, Fitness After 50

find an opportunity wherever I was to help people and develop a servant leadership attitude. So everyone I deal with is my customer, especially my employees and my team. When people are authentically valued, when you ask their opinion, when you focus on the collective goal and when you do the right thing, really miraculous things can happen. I’ve always wanted to have a purpose to my profit.”

The majority of Suzy’s career was spent serving as a nurse. There were many paths she could have walked down from there: nutrition, counseling or a variety of other careers centered on helping people transform their lives. Why fitness? “I wanted to be on the preventative side of illness,” explained Suzy. On average aging adults lose 70 percent of their muscle mass throughout life. No matter your age, with regular resistance exercise, one can increase muscle strength, preserve bone density and improve balance.

More muscle also burns more calories resulting in a healthier body with lower fat content. “How connected you are to your community is important; diet is important.

But physical inactivity has a bigger hit in terms of peoples’ mortality than many other concerns,” noted Suzy.

As a young woman Boerboom had a near death experience: an emergency surgery. As a nurse she was also often with people as they had their final breaths of life. These experiences gave Suzy the great advantage of knowing how fleeting life is. It was always clear to Suzy that relationships are the single most important thing in life. “This is a very limited window that we’ve got here. Most of the time I try to say yes to my family and fun things,” said Suzy. This attitude and inner knowing has blessed Suzy with a job where she has the opportunity to form influential relationships, “Our country is filled with retired people who are so bright and experienced who make great franchisees and customers. Our members literally thank us for being here. Every

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day that I’m in our club I hear success stories and the joy people have from taking a front seat with their health: they don’t want to be resigned to aging in a debilitating manner; they want to live!”

Welcyon has five pillars of fitness designed to impact your overall health: strengthen, to build muscle mass; aerobic, to improve cardiovascular performance; balance, to stand strong and prevent falls; flexibility, to improve posture and joint motions; and, social, to increase happiness by connecting with others. While the Welcyon team is looking to expand and welcome in new franchisees, Suzy is quick to communicate, the passion is where it must start with her franchisees, “Do something

that you have a passion for and something that you believe in. For someone to excel as a Welcyon franchisee, they have to care about people and be able to walk the talk of caring. We have designed such a strong system and structure that if a person comes to us smart, wanting to help people, interested in fitness, and wanting to work hard they can succeed with us.

We can teach the business side of things; it’s almost impossible to teach someone a great attitude.”

For more information please contact George Henry or Ki McCue at: Phone: 952-873-7900 Web: www.welcyon.com

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Regional Developer Opportunities Available in the U.S. and Canada Single and Multi Unit Territories Available

Best Opportunity in the Booming Pet Industry‌ $52.8 Billion spent on U.S. pets in 2012 30% increase over the last 5 years Rapid growth plans to expand to over 400 locations 90%+ of customers pre-pay for future services, no accounts receivable

Contact us today to find out if Dogtopia is right for you Thomas Franchise Solutions 602-354-9357

www.dogdaycare.com Franchising USA

f ra nchisor in depth

New Life in a

L on g - S tandin g C ompany

Meg Roberts

Meg Roberts, often noted for her marketing acumen, innate ability to develop and lead teams and generate business leads for franchise owners throughout the Molly Maid system, was appointed President of Molly Maids just less than a year ago. Her energy is infectious and it is clear that Roberts and the team she leads are set on making Molly Maid a household name.

The Molly Maid house cleaning franchise system is built around the concept of providing superb residential home cleaning in a trustworthy and professional manner. Roberts acknowledges that house cleaning can be perceived as a service with little differentiation, but with Molly Maid it’s all about the details.

“The way in which we clean, our proven attention to detail and methodology is what sets Molly Maid apart,” said Meg.

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“But what really differentiates us is that Molly Maid isn’t just about cleaning; it’s about peace of mind.”

Caring for the Community Roberts referred to a special aspect of Molly Maid by pointing out the company’s work to support survivors of domestic violence through their Ms. Molly Foundation. The Ms. Molly foundation has been a central part of the company since 1996. The foundation supports individuals who’ve experienced domestic violence and provides education and services that may otherwise be swept under the rug by donating a portion of every clean to local and national support networks.

Molly Maid was originally founded in Canada and brought to the United States 30 years ago by David McKinnon, still the owner and chairman. The first location has been successfully operating in the headquarters’ home town of Ann Arbor, Mich. for more than 25 years.

“Now, we have 250 plus franchisees in the U.S. and a wonderful concept that stands the test of time. Residential house cleaning is a service in high demand. It’s much less of a luxury now and more of a necessity than it used to be,” said Roberts.

“It’s a privilege to be part of such a strong brand that is synonymous with excellence.

We hear people say, ‘I need a Molly Maid’

and we’re proud to represent the industry.”

Most of Molly Maid’s clients are regular customers. Generally, customers like to have their house cleaned every other week.

That increased regularity keeps the house in a top notch standard. Your Molly Maid home service professional comes in and does a timely cleanup of the entire house and focuses deeper cleans on the areas that need it like the kitchen and bathrooms.

Since Meg has stepped into the role of President of Molly Maid there’s a refreshing environment and a revved-up energy around the home office in Ann Arbor.

Team Effort “I was humbled to be appointed this position. I looked around and saw my colleagues, other leaders, and we fancy ourselves this sophomore-esque team that has grown together. We’ve all been here

“When we’re in the home or on the phone with clients representing our services it’s often our attitude that represents us most. When clients feel as though they trust you the peace of mind follows. I’ve always said, ‘We provide cleaning services but we sell peace of mind.” for the past five years and we are all in the groove of working together. The level of commitment I see within our company is fantastic and each member of the Molly Maid home office team is honored and celebrated for what they bring. No one stands out because we all stand up together,” explained Roberts.

Meg is focused on having herself and the corporate team serve their number one client: Molly Maid franchisees.

“We just had our annual convention.

The feedback from franchisees was so encouraging. For example, we have a new program for our franchisees, Soar, and more than 60 franchisees signed up for it at the convention alone.”

The corporate team at Molly Maid is somewhat of a modern-day roundtable where everyone works on the same priorities and goals. Their departments are delivering strategies and programs to help franchisees lead the way in the industry.

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f ra nchisor in depth

Growing The Family The Molly Maid excitement will continue to grow within the new few years: they’ve recently opened 150 territories in order to reach every demographic. Meg is inspired to watch a resurgent wave of energy generated towards crafting exceptional territories.

“We have great territory available coast to coast, including cities like Boston and Philadelphia. And we have areas where customers want Molly Maid service but we have yet to open a franchise – like New Orleans, L.A. and Lincoln, Neb. We feel there is still a land of opportunity available for people interested in owning a Molly Maid franchise,” shared Meg. Molly Maid is looking for franchisees that possess an aptitude for business with an entrepreneurial spirit.

“When I think of what a successful franchisee is, I think of someone who can focus on the points that drive a successful business; someone who follows the Molly Maid model and genuinely wants to be part of a team. Attitude is essential; what we sell isn’t a product, it’s a service. When we’re in the home or on the phone with clients representing our services it’s often our attitude that represents us most. When clients feel as though they trust you the peace of mind follows. I’ve always said, ‘We provide cleaning services but we sell peace of mind,’” explains Meg. A brand that has been around for more than three decades has had the time to find out who they really are and therefore they know how to find franchisees that will feel like part of the family. There’s a thorough process when Molly Maid considers awarding a franchise; the relationship must be mutually beneficial.

“Another franchisor once told me, when you’re evaluating a candidate you have to ask yourself, ‘Would I like to be around a campfire sharing a meal with this person?’” said Meg.

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Molly Maid has evaluations and applications to ensure that prospective franchisees have the skills and capital to make the business venture possible, but they also take the time to get to know a candidate’s overall demeanor.

Throughout Meg’s journey to President of Molly Maid she has learned some valuable lessons. First, she says it took her some time to understand the importance of actively listening. Being such a thinker and wanting to find solutions, sometimes Meg would get stuck in the confines of her own head as opposed to listening to what others had to say.

“You may have things to share but make sure to actively listen, not just hear. You might grasp something worth hearing.”

A second lesson that came to Meg through her athletic experience is that the only place success ever comes before work is in the dictionary.

“If you want to be good at anything you need to work at it; you need to focus,” attests Meg. “That success,” Meg believes, “can only truly be enjoyed to the fullest when it’s shared. The top is a lonely place to be if you go it alone. Your success will always be stronger by working with a team and sharing that success is a far greater reward.”

When approached about her influences, Meg’s mother was the first person to come to mind.

“The person who has shaped who I am, how I conduct my work, and where my focus lies is my mother. While her career was inside the home she was always able to convey the importance of balance, integrity, authenticity, and honesty as the best policy.”

These deep-rooted qualities have assisted Meg in building a foundation that can transcend any opportunity to learn and lead.

“The most exciting thing for Molly Maid right now is that we’ve opened up all this territory. They’ve opened up a land of opportunity,” said Roberts.

There is enthusiasm and excitement buzzing within the company.

“It’s phenomenal to think that a company that has been around for 30 years still has the ability to have such refreshing energy.”

Meg and the whole Molly Maid team are looking forward to a bright future expanding their Molly Maid family.

For More Information: Web: www.mollymaid.com

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2013

PROGRAMS & EVENTS IFA is the premier resource for franchise news, trends, and strategies. Plan your strategy for professional career, education and networking development.

Legal Symposium – May 5-7 – Washington, DC The 46th Annual Legal Symposium is developed by a task force of franchise legal experts. Blending topics focused on franchise business and law, programming addresses the latest business and franchise law developments and features knowledgeable franchise law practitioners, franchise executives and state regulators.

IBA/IFA Joint Conference – May 7-8 – Washington, DC The 29th Annual IBA/IFA Joint Conference is developed in partnership with the International Bar Association’s Franchising Committee to create a program relevant to our friends in the international franchise law profession.

Experienced legal counsel share invaluable information regarding the latest developments in international law.

FranCamp 2013: Digital Marketing & Technology Best Practices Conference – May 14-15 – Atlanta, GA FranCamp 2013: Digital Marketing & Technology Best Practices is a new conference from IFA designed to help franchise professionals understand technology options and platforms. Includes case studies and best practices designed to integrate technologies like GPS, content management, communications, social, local, mobile and more into your business effectively.

Public Affairs Conference – September 16-17 – Washington, DC Meet us in our nation’s capital for a gathering of our Board of Directors, committees, forums, councils and task forces to network and visit with their Members of Congress during IFA’s most important advocacy event. Leadership meetings will also be held in Washington September 15, 16 and 18 to conduct important association business.

Franchise Development Seminars – July 17-18 – Philadelphia, PA // September 25-26 – Denver, CO // December 8-9 – New York, NY Participate in an in-depth exchange of information with franchise development experts revealing tips and tools for building your franchise brand, featuring programming focused on industry challenges, successes and what to expect for the future.

International Symposium – June 18-19 – New York, NY The International Symposium focuses on the latest trends and strategies for increasing your franchise system’s presence internationally while meeting the people that can help you make it happen. With more and more countries opening their doors to businesses outside their own borders, executives from all over the world come together to discuss current trends and strategies. This year’s symposium will be held just prior to the International Franchise Expo.

International Franchise Expo – June 20-22 – New York, NY Co-hosted with MFV Expositions, the IFE brings together hundreds of franchise concepts and thousands of qualified prospects from across the United States and more than 80 countries.

West Coast Franchise Expo – October 24-26 – Anaheim, CA Co-hosted with MFV Expositions, brings together franchise concepts and qualified prospects from the growing West Coast market.

Emerging Franchisor Conference – November 13-14 – Ft. Lauderdale, FL The Emerging Franchisor Conference is designed to address challenges and opportunities unique to franchise systems with 300 or fewer units. The Emerging Franchisor Conference is a prime networking and educational conference for franchisors that are ready to take their system to the next level.

AND MARK YOUR CALENDAR NOW FOR THESE EARLY 2014 EVENTS Franchise Expo South – February 6-8, 2014 – Houston, TX Co-hosted with MFV Expositions, the FES brings together franchise concepts and qualified prospects from the southeastern United States, Latin America, and the Caribbean.

Annual Convention – February 22-25, 2014 – New Orleans, LA More than 3,000 franchise professionals will gather to learn, network and chart the future of franchising. The Annual Convention presents multiple business and professional development opportunities along with a variety of ways to learn from and share best practices with successful franchise executives from various industries of all sizes. www.franchise.org Franchising USA

ex per t advice

Jennifer Tucker, Vice President of Homewatch CareGivers

The Need for Home Care

in the A g e of H ealth C are R eform “When selecting a home care franchise brand, inquire about the agency’s relationships with national business partners in home health care and hospices that have a presence in the local community.”

Jennifer Tucker

Today’s potential home care franchisees are often puzzled by the same question: “How will the health care reform affect my business?”

As a result of the Affordable Care Act (ACA), to save $15 billion a year, Medicare started penalizing hospitals for the number of patients with certain conditions that are readmitted within 30 days of their discharge. Hospitals are now worried about Medicare penalties applying even if a patient’s readmission is for a different health problem. For example, if an elderly woman is discharged from the hospital after a heart attack, falls at home and breaks her hip, her readmission will cause the hospital to receive a Medicare penalty.

In an effort to reduce readmissions, hospitals are partnering with organizations that can help them improve care

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coordination and health care outcomes, while lowering health care costs. In addition to traditional care partners like rehabilitation and skilled nursing facilities, hospitals are starting to work more closely with in-home care agencies to provide more comprehensive, continual care.

The ACA offers limitless opportunities for home care agencies to become vital members of the health care system by solving problems associated with caring for patients transitioning from the hospital to their homes.

It is essential for anyone considering owning a home care business to understand how individuals can benefit from several types of care in the home, the role each plays in the health care continuum (see info graphic), and the often intermittent nature of such care.

Services provided in the home care setting Rehabilitative Home Care This type of care is often provided by a skilled home health care agency that focuses on restoring a person’s physical abilities. This type of home care is intermittent and is typically provided by nurses and therapists. However, Medicare pays only for medically necessary services for a limited time.

Palliative Care Palliative care focuses on making a person comfortable. Hospice care is a category of palliative care and often comes into play in end-of-life scenarios. Under Medicare, hospice benefits include skilled nursing, therapies, grief support and social worker services. While patients nearing death often get 24-hour care, hospice care services are generally intermittent and are only used to care for dying or incurable patients.

Companion & Personal Care Companion and personal care bridges the gap between palliative and rehabilitative care. A home health care agency often acts as the first line of support for families, but since that care is intermittent, it often leaves the family to attend to their loved ones’ needs. An in-home personal care agency’s specially trained caregivers are perfectly suited to fill in those care gaps.

When a chronic condition affects the physical well being of a patient, companion care assists them with daily tasks such as light housekeeping, trips to the grocery store, picking up prescriptions, meal preparation and companionship.

Personal care involves bathing, grooming and assisting a client with mobility.

In-home care also provides a critical

conduit to health care professionals.

Specially trained caregivers can prevent hospital readmissions and save billions of dollars in wasteful health care spending by helping clients adhere to their medication regime, prevent falls, monitor their nutrition and exercise, and assist with attending doctor appointments.

Investing in the future The need for continual care management offers long-term business opportunities for entrepreneurs entering home care franchising. However, not every home care brand is equal. Potential franchisees need to look for a company that is well positioned to benefit from the changes in care coordination under the ACA. Home care agencies that offer comprehensive chronic condition care are poised to become the go-to partners of home health care companies, rehabilitation facilities and hospitals. Trained in providing customized care for patients living with chronic conditions, in-home caregivers act as another set of eyes and ears in the home, becoming invaluable partners for health care providers. This level of understanding is especially important because many seniors live with more than one condition.

Working with a franchisor that has already put care coordination practices and chronic

care training programs in place allows new home care owners to competitively position their businesses in their local markets and easily develop long-term partnerships with referral sources.

implications of the health care reform, supports its network with proven tools and caregiver training methods, and keeps its partners informed about any opportunities and policies affecting their business.

Strong home care brands also offer operational support, including enhanced client tracking and care coordination tools. In addition, they provide direct sales materials to help their franchisees stand out in front of referral services and family caregivers in the crowded home care market.

Jennifer Tucker, Vice President of Homewatch CareGivers, a national home care company, has worked in case management, corporate wellness, women’s health, and health education.

Through its chronic care education programs at the Homewatch CareGivers University, the company strives to improve the quality of life for people of all ages living with chronic conditions.

When selecting a home care franchise brand, inquire about the agency’s relationships with national business partners in home health care and hospices that have a presence in the local community. This will assure a successful business launch and strong growth for years to come.

While the ACA drastically changes the healthcare system, it also offers new business opportunities for home care franchisees. The key to success for a home care owner is to work with a franchisor that understands the

Homewatch CareGivers International is a 33-year-old home care franchisor with over 210 locations. Find more information about home care services and health care reform at www. homewatchcaregivers.com/what-ishome-car/care-transitions.

For More Information: Phone: Email: Web:

800-472-2290 franchise@homewatche-intl.com www.homewatchcaregivers. com/franchise

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ex per t advice

Kelly Maguire, Sr. Director of Digital Strategy, AviaTech

The Importance of Social Engagement and the Impact of Facebook Graph Search Kelly Maguire

While engagement has always been the holy grail of social marketing, it has now become even more important with the introduction of Graph Search from Facebook.

The major difference in this core concept that Graph Search introduces is a shift in the importance of this engagement from National to Local. Graph Search is Facebook’s attempt to develop a sort of social search engine that compiles results based on the activities of the community rather than traditional search

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algorithms. Where this becomes truly intriguing is when you realize that the community activity that this tool is using to compile results, effectively comes down to social engagement metrics. Facebook is looking at data composed of check in’s, status updates, page activity, likes, and other indicators that the community is “validating” the value of a particular result. With Facebook allowing these metrics to determine the way that brands and pages are listed within search, it becomes a critical piece in the social discovery process.

This shift has dual implications; on the positive side it allows brands and pages to be more in control of where they show up in social discovery, much like SEO has done for traditional search. However, on the negative side it requires a relatively major shift in social strategy and not surprisingly places emphasis on the utilization of social strategies including paid methodology, an expected focus for Facebook since it went public. The introduction of Graph Search combined with some current and anticipated layout changes to the structure of Facebook which underline the significance of rich media elements like photos and video, and you start to see that Facebook is changing the game and forcing brands to work hard to earn their social payoff. It is no longer enough to simply have fans, a challenge of its own, but you must now find ways to get them involved in a meaningful way.

While this tool is still very early and information is becoming available at a slow pace, it is becoming clear that Graph Search is a major focus of Facebook and while it may go through various iterations it is something that brands and marketers should prepare for now as it is here to stay. Graph Search is available in beta

“Operate in a top down environment. This type of system develops the brands “social value” at the corporate level and cascades that philosophy down to each location with each store building their own presence based on the corporate initiative.”

currently and data is still limited, but marketers can still begin to make the necessary shifts based on what is already known. It is universally accepted that Graph Search will create a shift from large corporate social presence value to a more locally focused and engagement centric model. This means that marketers should be looking to develop smaller more localized presences wherever they can and start to establish strategies to grow their communities and get them involved. The importance of a National presence will not disappear, in fact it is perhaps even more important now, but adding a layer of localization to take advantage of that National presence becomes critical. It also means that brands that have fallen behind and failed to build their social presence will need to jump in sooner rather than later or risk being left even further behind.

Strategies to get started can include:

• Encouraging organization and system wide strategies at the top level of the brand • Claiming location pages on Facebook - Brands with many locations should look to the Parent-Child tool offered

by Facebook • Fully optimizing Facebook Pages • Running ads to grow the community • Establishing a clear social strategy for the brand • Developing a content strategy and posting schedule with a focus on photos and video as well as engagement heavy content • Develop promotional plans such as contests and giveaways (being sure to follow Facebook’s strict promotional guidelines)

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Kelly Maguire, Sr. Director of Digital Strategy, AviaTech

engage with your brand on top of simply connecting with it will become the golden egg of social media, only now it will help drive new business more than it ever has before. Whether identifying and allocating internal resources to dedicate to this challenge or finding the right external partner to help you get up to speed, the time to address this is now as it will only become harder as time goes on and competition for the top social search spots grows.

• Educate employees on the importance of encouraging in store and mobile social engagement such as check in’s and reviews One of the most important ways that a large brand or a system that relies on a National brand with local stores can begin to leverage these new social principles is to operate in a top down environment.

This type of system develops the brands “social value” at the corporate level and cascades that philosophy down to each location with each store building their own presence based on the corporate initiative.

This holds many advantages in that it provides a much needed support structure at the local level where it is often difficult for marketers to “get started”. In addition to this it maintains a total brand feel across a large system and helps avoid a collection

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of “rogue” social identities. Perhaps most significant of all is that it develops a brand voice and sets the users expectation of what they will experience from connecting with a brand whether at the corporate or local level. All this contributes to setting the stage for a rock solid social strategy that can come together and work together for the benefit of all parties. Any system that relies on a National brand with a local execution would be well served to push for a corporate strategy that they can build from.

While this is a shift that is still in its infancy and will require an agile approach as things settle, two things are currently known for sure; local social presence is going to become an even more critical part of the overall marketing strategies for brands and getting your customers to

Since joining Aviatech in 2010, Kelly has played a leading role in adding new services to the agency’s core capabilities, including the development of award-winning advergames and sweepstakes initiatives, digital PR, and paid social advertising. He has overseen the implementation of new technologies to help streamline departmental operations, and supervised a departmental expansion as it grew by more than 50%. Kelly has also contributed to the agency’s thought leadership with published articles and appearances at seminars and client conferences.

Kelly’s former positions include Strategist at Omnicom network OMD, the world’s top global media brand, where he was involved in developing the emerging media department; and Senior Program Manager at Performics while owned by Google, where he interfaced directly with all major social networking sites. His work with Facebook directly impacted the introduction of cutting edge applications to their ad platform. Kelly holds a Bachelor of Science degree in Business Management from DePaul University of Chicago.

For More Information: Web:

www.aviatech.com

F ranchisin g for a P urpose :

Doing Well by Doing Good “We are filling this evident void in the healthcare system, with the vision of becoming the nation’s largest and best provider of preventive (functional) senior healthcare and medically-supervised exercise.”

Matt D. Essex

Franchising is rarely thought of as a solution to national problems. This “calling” is all too often relegated to non-profit entities, government programs, or government itself.

Somewhere along the way, business became more associated with profit than purpose; and today, by and large, the two seem to be mutually exclusive. Worse yet, is when the pursuit of profit is the purpose, rather than the result.

According to the 2010 Census, there currently are 38 million Americans over age 65 and another 76 million Baby Boomers who began turning 65 on January 1, 2011. Another person turns 65 every seven seconds in the United States.

By the end of this decade (2020), the world will experience a shift in population demographics that has never occurred in human history. Adults over 65 will outnumber children under five. And, life expectancy will continue to climb to record highs for both men and women.

Everyone will be impacted by this phenomenon in some way, with implications being greater than we can possibly imagine, reminding us that we are all interconnected. As mom and dad and grandma and grandpa live longer than they ever expected, be assured there will be an impact on you and your family.

This “aging of America” will also have an impact on our communities, our state resources, our healthcare system, and our national economy.

Now, I haven’t mentioned anything about it having a negative impact, but I know that’s what you’re thinking: “When exactly did aging become synonymous with problems, small and large?”

I’m not certain of the exact time, but I believe it has something to do with the fact that while we are aging faster than ever before, and living longer than ever before, we also have more so-called age-related health problems than ever before. Chronic diseases such as heart disease, diabetes, cancer, arthritis, and depression, together with falls, are currently at their highest levels, affecting 90 percent of adults over age 65, and collectively costing more than $100 billion per year in Medicare spending.

But these age-related health challenges are not inevitable. In fact, there is actually no scientific rationale for this to occur.

At ActiveRx, our purpose is to redefine aging and the way people think about Aging

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have your say

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Matt D. Essex, MS, Founder & Chief Executive Officer, Active Rx Active Aging Centers

have your say Our franchise model designed and built specifically to facilitate active aging and prevent disease, is based on more than a decade of scientific research showing the direct correlation between strength, physical function, independence and quality of life in aging. ActiveRx emerged in 2008 with the opening of our first Active Aging Center in Scottsdale, Arizona. Now, every day, we are witnessing powerful, life-altering improvements in strength, function, independence, disease, and quality of life for hundreds of patients.

Our battle cry is “Choose How You Age,” because we believe that your quality of life is aligned with your quantity of life. It is truly a matter of the choices you make.

Within our centers, we encourage patients to become stronger, remain independent, and prevent the injuries and chronic diseases that are all too often unjustly associated with aging; and, we give them the place to go to do it.

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Our research, and that of others, continues to validate the fact that the loss of strength is the number one contributor to falls, loss of mobility, and loss of ability to remain physically active. The good news is that strength loss is preventable and can be regained at any age, leading to a cascade of health benefits that are almost unquantifiable. Our franchisees have an opportunity to change lives in a big way!

Believe it or not, most seniors lose 30 percent of their strength by age 65, 60 percent by age 75, and as much as 90 percent by age 85, if they do not do anything about it. While these statistics might astound some and thoroughly intimidate others, our proprietary approach has been shown to restore ten years of strength and function within the first three to four months of care.

While we have always been wholeheartedly committed to research, advocacy and education as a company, we knew what was missing was the

place, the system and the support to age optimally. We are filling this evident void in the healthcare system, with the vision of becoming the nation’s largest and best provider of preventive (functional) senior healthcare and medically-supervised exercise.

We fundamentally believe in treating others as we ourselves want to be treated, in doing well by serving the greater good.

To live active, independent lives and continue to do the things we’ve always enjoyed without limitations is what we all want as we age. It’s what we should

be willing to give to those who have done so much for us. And it’s what we do at ActiveRx. With regional development and franchise agreements now in place in Arizona, Colorado, southern California, Massachusetts, Rhode Island, Connecticut, South Carolina, north Texas, Illinois and Michigan, we are aggressively marketing our unique concept throughout the continental United States to new franchisees and regional developers.

We are seeking individual owners and regional developers who would like to join us in our purpose, and want to be in the business of solving some of our country’s most important healthcare challenges.

We are convinced that ActiveRx provides the environment, the system and the support network necessary to facilitate meaningful lifestyle changes that could improve the overall health and function for millions of older adults.

Recognized as one of Arizona’s leading authorities in geriatric health and wellness, Matt Essex is the founder and chief executive officer of ActiveRx, a Chandler, Ariz.-based company and national leader in preventative senior healthcare that focuses on the allimportant connection between strength maintenance, independent living and a

high quality of life.

Essex is an accomplished and seasoned entrepreneur, teacher, researcher and public speaker in the areas of healthcare, wellness, nutrition and gerontology who strives to continuously demonstrate the embodiment of a service-leader.

During the past decade in the healthcare industry, Essex has become well respected for his vision, creativity and passion for senior healthcare and wellness.

He and the healthcare companies he has been involved with have been nationally recognized for their efforts in Active-aging, by the International Council on Active Aging (ICAA), the American College of Sports Medicine (ACSM), Stanford University, Arizona State University, the City of Scottsdale

and other groups. Essex has been the focus of several editorials where he was recognized as one of the top entrepreneurs in Arizona for his dedication and passion for reinstituting time and care back into healthcare.

Essex earned a Bachelor of Science degree in exercise science with an emphasis in human physiology and nutrition, and a master’s degree in exercise and wellness with an emphasis in geriatric research (strength and aging) in 2001.

For More Information: Phone: Email:

Web:

480-840-1460 Michael Hutta MHutta@ActiveRx.com ActiveRx.com/franchise

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ex per t advice

Robyn Gault, Vice President of Strategic Accounts, Direct Capital Franchise Group

Expanding Your Network At Direct Capital, we’ve learned that the majority of our franchise customers have an eye on expanding their networks to become multi-unit owner-operators.

After all, owning multiple units gives you more control over your market and the chance to generate greater revenue. However, the road to the multi-unit dream is much simpler when you have a good lender you can trust. Below are some basic steps to help you through the process of expanding your network through acquiring an existing franchise location – both before and after you secure financing for the project.

Get Your Finances in Check When you’re thinking about expanding you franchise portfolio, you will have to take a good look at your current debt situation. Do you have any current loans? What’s left on your terms? Getting a clear picture of where you stand financially will put you in the best possible position when evaluating your next investment.

Once you think you’re in a good place to open a new location, you’ll want to begin getting all of your financial documents together. Start to get the financials for all of your locations, including those for the location you are hoping to purchase, organized and easy to look at, as you’ll likely have to present all of this information to your lender as part of your personal financial statement when the time comes to secure your financing.

Have a Solid Business Plan

Robyn Gault

Details like your staffing plan, what operational improvements you intend to make, how you will manage more than one location, and details of your local marketing plan all play a big role in your success and are important details your lender will want to know you’re prepared for.

Is the new location close enough to your current one that you will be able to reasonably commute and visit them both regularly? If not, take some time to think about how you will hire and train a management team.

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Do Your Research A very common expansion strategy for existing operators is to grow through acquiring an existing franchise location.

The reason for this is simple; it removes the mystery from the equation. A quick look at that location’s track record and current management structure can give you an insight into the opportunity.

When you purchase an existing franchise, you are purchasing an established business. Not only are you inheriting the equipment and often the current employees and management, you’re also inheriting an existing customer base and a community that already knows you exist. Even an underperforming location can present a fantastic opportunity for the right operator who can come in and turn the location around. The key here is relying on your business plan to clearly determine why sales were down in the first place and what the strategy is to reverse the trend.

Have the traffic patterns changed adversely affecting the location? Was the location mismanaged? Was adequate field support provided by the franchisor? It could be any one of these things or a combination of all of them, but whatever the reasons, it is likely they could also affect the location when you take ownership.

Hot Tip: Be sure to ask questions to determine exactly how the seller has arrived at the selling price. Some franchises based in non-traditional locations, like colleges and airports, tend to be much more valuable than traditional free standing or in line franchise locations since they are catering to a more “captive” customer base. A price that is roughly 5065 percent of revenue is generally a good guideline look for. If the price is high, be

sure there is a good explanation for it.

Making Improvements If you opted to buy an existing location, consider what improvements and changes will be most important to your success. Below are three categories of improvements that can drive both short and long term growth to your bottom line.

Personnel Changes Buying an existing location usually means buying everything that goes along with it, current employees included. Consider whether you’ll keep your current staff or if you’ll bring in new faces. New staff could mean a happier customer base and a change that could have a measurable effect right away.

Equipment and Technology If the previous owner was using equipment that was worn down and out of date, an upgrade could mean incredible time and money savings that stem from an increase in efficiency. Keep in mind, there’s a chance that you could be asked to purchase new equipment down the line to account for new franchise product offerings as well.

Physical Renovations Many franchise concepts will require franchisees to implement brand-wide updates and remodels on a relatively set schedule. Some may require minor updates every five years and a major overhaul every then to 15 years. If buying into a new brand, it’ll prove to be immensely helpful to learn where your new location currently falls into this schedule so you can plan for the upcoming expense.

“Most franchises can expect to see a significant increase in revenue immediately after a remodel.

It’s not just about appearances either; chances are the improvements will make your processes more efficient, which will wind up saving you money in the long run.”

If you’re not up to your current brand standards, you may want to consider opting for the updates sooner rather than later, as the benefits to your bottom line and your image could potentially be huge. Most franchises can expect to see a significant increase in revenue immediately after a remodel. It’s not just about appearances either; chances are the improvements will make your processes more efficient, which will wind up saving you money in the long run.

Don’t Go In Alone Even if you’re a pro in the franchise game, having a lender that has a good deal of experience in financing store acquisitions will be a tremendous help. Look for a lender with dedicated account teams to support each national franchise brand.

If your lender routinely deals with QSR chains, they will be well versed in all of the intricacies of the process and will be better suited to help you every step of the way. This ensures that you’re getting the amount of attention you deserve. Inhouse underwriting and operations teams are another bonus, helping to expedite approvals and processing to get your money to you quickly.

Being in the position to successfully open another franchise location, and actually going through with it, is truly a rewarding experience. Starting with a solid business plan and a relationship with a lender you can trust will go a long way in helping you realize your multi-unit ownership dream.

Robyn Gault is the Vice President of Strategic Accounts for Direct Capital Franchise Group. Direct Capital Franchise Group is a national direct lender with 20 years of experience.

The firm partners with Franchisors to provide competitive financing to support new store development, remodels, relocations, store acquisitions, equipment upgrades, and more.

For more information: Phone: 603-433-9476 Email: rgault@directcapital.com Web: www.directcapital.com

Franchising USA

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With a range of mobile platforms for any device, when potential franchisees search for new possibilities, they’ll find you here.

Contact Jenn Dean, Senior Sales Executive, for global solutions on your multi-media advertising approach.

Email: jenndean@shaw.ca Phone: 250-590-7116

Franchising USA

www.franchisingusamagazine.com