Franchising USA - January 2015

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Franchising usa T he ma g a z ine for franchisees

VOL 03, ISSUE 3, JAN 2015

$5.95 www.franchisingusamagazine.com

Clean Up with

Bin There Dump That M a i n F e at u r e

Home Services Franchising Should You

Franchise Your Business i n 2 015 ? LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 3, ISSUE 3, jan 2015 president: Colin Bradbury. colin@cgbpublishing.com

Publisher: Vikki Bradbury. vikki@cgbpublishing.com

Editorial Department: editor@cgbpublishing.com

Editorial team: Rob Swystun Stephen Kelly Gina Gill

Advertising Sales: advertising@cgbpublishing.com

Production: Samantha Klimecki. usaproduction@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: Bin There Dump That John Ferracuti & Mike Kernaghan

CGB PUBLISHING 676 Wain Rd. Sidney, BC V8L 5M5 CANADA Sales: 778 426 2446 Editorial: 778 426 2446 www.franchisingusamagazine.com Proud member of the IFA:

SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org

from the

Publisher Happy New Year!

DuFore asks the question – “Should you Franchise Your Business in 2015?”

Have you made a New Year’s Resolution?

Do you want to take control of your life and have a better work-life balance? Andy Roe tells how to “Become the CEO of Your Life”.

If you’ve made yourself a promise to make changes to the way you work or do business this year, then our January issue is for you. Have you decided to start your own business this year? Our regular feature this month focuses on Home Services Franchising. It seems that anything that people find a pain to do themselves, they will be willing to pay to have done. Our regular writer Rob Swystun looks at the myriad ways you can take advantage of this. Once such Home Services franchise is Bin There Dump That who feature on our cover. Do you have a successful business and are looking at ways to expand? Tom

Our ever popular Veterans Supplement takes a look at one Veteran’s success as a Cartridge World franchisee and focuses on JDog Junk Removal and Hauling where “Veterans Only Need Apply”. We also bring you the latest news from VetFran about the Franchising Gives Back event being held in conjunction with the 55th Annual IFA Convention in February. Our New Year’s Resolution is to keep bringing you all the latest news and information from the world of franchising and we are pleased to be off to a great start. It’s certainly a resolution we intend to keep and we hope you keep yours too! Until next month - happy reading. Vikki Bradbury Publisher

“Whether we want them or not, the New Year will bring new challenges; whether we seize them or not, the New Year will bring new opportunities.” Michael Josephson

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


On the Cover 10 Cover Story

Home Services Franchising

46 Should You Franchise Your Business

in 2015

Tom DuFore, Franchise Business Systems

52

Bin There Dump That

46

January 2015

22 Feature Article

20 In Every Issue

06 Franchising News Announcements from the Industry 22 Feature Article Home Services Franchising 31 Veterans Supplement News and Information for Veterans in Franchising

Franchisee in Action 16 PIRTEK

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f ra nchising usa

Contents


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14 Best Franchise Presentations on SlideShare in 2014 Adam Heitzman, HigherVisibility

46

Expert Advice

20 Children’s Service Franchise Systems are Growing Up Dzana Homan, School of Rock 28 Ignoring Emerging Technology Puts Your Company at Risk Tariq Farid, Edible Arrangements 46 Should You Franchise Your Business in 2015? Tom DuFore, Franchise Marketing Systems

56 Dip Your Toes into the Franchise Shark Tank George Knauf, FranChoice 58 Become the CEO of Your Life Andy Roe, SurePayroll

56

52 One Brand, One Voice Patti Laine, tag franchise

Focus

Have Your Say 48 Tokyo Joe’s

38

54 The Interface Financial Group

Profiles 12 All About Loving Care 26 Little Caesars

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what’s new! very satisfied and loyal customers, who return frequently to our products and

services and recommend us to their family and friends. We are excited for the next million.”

With 90 locations opened and operating in 23 states, the company plans call for adding as many as 24 new locations in 2015.

Excited for the next million, Screenmobile is looking to expand its national footprint by seeking individuals looking for a

home-based franchise business that offers

Screenmobile Services One Millionth Customer Screenmobile, one of the nation’s largest screen repair companies, continues to capitalize on the growing demand for residential screen repairs, having recently serviced its one millionth customer.

“We’ve been so busy we didn’t even see this milestone coming. After realizing it, I sat back and was so proud of the company and our franchisees,” said CEO and co-founder Scott Walker. “Screenmobile exists in the acquisition and retention of

the benefits of a time-proven system,

professional training and support, and a

low initial investment to put them on the track towards business success.

With a franchise fee of $39,500 the

total investment to own and operate a

Screenmobile franchise is approximately $83,000 -$120,000.

For more information visit: www.screenmobile.com

Mrs. Winner’s Chicken and Biscuits Mrs. Winner’s Chicken and Biscuits, a Southern tradition since 1979, announces resumed franchise sales throughout the southeastern U.S. Founded by Jack Massey, a QSR empire builder who earlier purchased KFC from Colonel Sanders, Mrs. Winner’s developed a passionate customer base – from Atlanta to Memphis to Nashville to Birmingham and throughout the Old South – who returned again and again for the brand’s perfectly seasoned home-style fried chicken, made-from-scratch biscuits, and hot frosted cinnamon swirls. “Our management team has rebuilt the franchising platform from top to bottom, concentrating on marketing, operations support, and supply-chain,” said John Buttolph, president and CEO of Mrs.

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Winner’s Brand Management LLC. “Our immediate growth strategy is to return Mrs. Winner’s to its legacy markets, and to build on the tremendous brand equity established over the past 35 years.” Mrs. Winner’s Chicken and Biscuits currently has 12 locations, all serving breakfast, lunch and dinner: three in Georgia (Decatur, Stockbridge and Macon); one in Birmingham, Alabama; seven in Greensboro, North Carolina; and one in Cleveland, Tennessee. Last year, the company opened two new stores and during 2015 expects to conclude franchise agreements for an additional 15 locations, in Georgia, Tennessee and Alabama. For more information visit: www.lovemrswinners.com


IFA selects Fish Consulting to Launch “Franchising Gives Back” Program programs. The campaign will officially launch February 16 at the Association’s annual convention in Las Vegas. “Over the past decade, Fish has forged a strong relationship with the International Franchise Association, which has been an essential part of our growth,” said Lorne Fisher, CFE, CEO and managing partner, Fish Consulting, LLC. “We’ve supported countless franchise brands over the past 10 years and their various charitable programs. And now, to help the IFAEF celebrate the commitment these companies have made to their local communities is very exciting and rewarding to our entire team.” Fish Consulting, LLC, a national communications firm specializing in franchise public relations and marketing, recently announced that the International Franchise Association (IFA) Educational Foundation has engaged the firm to develop and launch its national Franchising Gives Back program.

spotlight on how franchise businesses

Fish recently celebrated its 10th anniversary and has experienced significant growth over the past several years. In 2014, Fish was named to the Inc. 5000, Inc. Magazine’s ranking of the fastest growing privately held companies in America. Fish was one of 120 South Florida-based businesses to make this list.

charitable and community support

For more information visit: www.fish-consulting.com

The IFA Educational Foundation, the

philanthropic arm of the International

Franchise Association, has enlisted Fish to lead the campaign’s national public relations and website development.

Franchising Gives Back will put the

give back to their communities through

First-Time Franchisees Assume Ownership of Hawaii Valpak Territory Solidifies Position as Leader in the Waxing Services Category Mark Weisbrod and Kala Kos have acquired the existing Valpak of Hawaii territory. With this territory, Valpak’s signature blue envelope will now mail to nearly 220,000 households on the island of Oahu, Hawaii. “Kala and I are thrilled to be joining the Valpak team, as we’ve always had an entrepreneurial spirit,” said Weisbrod, Valpak of Hawaii franchisee. “After learning about Valpak’s suite of digital and print products, I knew this was the perfect

opportunity for us. We look forward to partnering with local businesses to help them grow their business, and serving the community by offering consumers savings through Valpak.” When searching for a new business venture, Weisbrod and Kos were impressed with Valpak’s business model, strong market position and great reputation in the area. Weisbrod most recently taught finance at the University of Hawaii, West Oahu campus. Prior to teaching, he spent

most of his career involved in his family’s business where he gained a wealth of experience in new product sales and marketing.

For more information visit: www.valpak.com

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what’s new! Firecrust Neapolitan Pizzeria: Great people, great quality, great price Similar to other restaurants, customers can pick and choose from about 30 chef-prepared toppings and watch their customized pies be assembled. Each pizza takes about 90 seconds to bake using imported wood-burning ovens. Other options on the menu include four salads and two dessert pizzas. Firecrust will be doing localized expansion in Texas markets. Firecrust prides itself on honoring the heritage of this amazing product while also being true to the energetic and casual street food experience. Pizza was first made in Naples, Italy when locals began adding tomato ‘Marinara’ sauce to their flatbread. Firecrust Neapolitan Pizzeria is bringing

freshly prepared wood fired pizzas to the

hungry masses of Dallas Fort Worth with two locations recently having opened in the market. Firecrust’s Neapolitan-style pizza is modeled after the legendary pizzerias in Naples, where each pizza is hand crafted and made-to-order.

Scott Bender is passionate about Firecrust Neapolitan Pizzeria. If you are interested in becoming a Franchisee, check out the website. For more information visit: www.firecrustpizzeria.com

Oxi Fresh Has Record-Setting 2014, Opens 51 New Locations Oxi Fresh Carpet Cleaning is continuing to cement its position as one of the nation’s fastest-growing franchises, having opened 51 new locations in 2014, including its first two franchises in Canada. This record-setting growth has already surpassed that of the two previous years combined, and the trend is likely to continue. Based on current projections, Oxi Fresh predicts they will open 55 new franchises in 2015 and more than 120 over the next 24 months. “Our continued growth can be attributed to our ability to attract quality franchisees who share our passion for delivering the best, most innovative and environmentallyfriendly carpet cleaning services in the industry,” said founder Jonathan Barnett,

Franchising USA

whose company was recently named one of America’s Best Franchises by Forbes magazine. “As we look to build upon our brand’s momentum, we see plenty of opportunities for additional growth.” The company’s future growth will be driven by targeting potential franchisees who are looking for a home-based business opportunity with a low investment of around $50,000 – which includes a one-time franchise fee of $32,900, a full equipment package, and a protected territory of up to 110,000 households. Additionally, Oxi Fresh also operates a Scheduling Center for its franchisees that books appointments and answers customers’ calls. For more information, visit: www.oxifresh.com.


HARD ROCK INTERNATIONAL OPENS FIRST LOCATION IN KAZAKHSTAN The Almaty cafe boasts three floors, including a large Rock Shop featuring rock ‘n’ roll-inspired items, as well as collectible Hard Rock Cafe Almaty merchandise available only at this location. The cafe also features an entertainment stage with state-ofthe-art audio to host live music and DJ events showcasing the region’s emerging talent, as well as international acts.

Hard Rock International announced in late October the opening of the country’s first Hard Rock Cafe in the territory of Kazakhstan. Hard Rock Cafe Almaty provides guests with fresh, high-quality items from Hard Rock’s scratch-based menu and extensive drinks menu, all available in Hard Rock souvenir collectible glassware.

“The opening of Hard Rock Cafe Almaty marks our first location in Kazakhstan, and it’s a privilege to bring our worldfamous brand to the vibrant and lively city of Almaty,” said Antonio Bautista, Sr. Vice President of Franchise Operations & Development, Hard Rock International. “As one of the most important cities in the CIS region, Almaty is ideal for Kazakhstan’s first Hard Rock Cafe, and we look forward to serving the local community.” Fans will also be able to see memorabilia from the world-famous collection from legendary and contemporary musicians from around the world. For more information visit: www.hardrock.com

Mary Brown’s Famous Chicken & Taters Opens First B.C. Location in Kelowna Popular Canadian Quick-Serve Franchise takes on the West Coast and gives the first 50 customers a free Big Mary Meal Mary Brown’s Famous Chicken & Taters, the Newfoundland originated Quick Service Restaurant concept, is expanding the popular brand from coast-to-coast. On December 5, 2014, Mary Brown’s will open the doors to the first of many B.C. restaurants to long-awaited customers. To celebrate, the first 50 guests will receive a free Big Mary Meal! Mary Brown’s Kelowna, B.C. will be located at #14, 2070 Harvey Ave., Kelowna and operated by father/daughter team Yusuf & Mohsina Ahmed. These franchisees have successfully operated the Stony Plain, Alberta location, which opened September of this year. Recognizing the value of ownership and the void in the Kelowna market, the Ahmeds made the decision to open a second location. “It is an exciting day for us to see us open our first B.C. location,” says VP of Franchise Development, Peter Rakovalis. “We have experienced how quickly the momentum grows for our

franchisees who spearhead a new region - Kelowna is a key market that we expect to do well. We anticipate locals to fall quickly in love with our Canadian heritage, fresh, made daily from scratch delicious Chicken & Taters, our outstanding service and community integration.” For more information visit: www.marybrowns.com

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cov er sto ry

Bin T here D u mp T hat

“The company la contractors doing h some

Clean Up With Bin There Dump That The Residential Friendly Dumpster Company Bin There Dump That wants to give the trash removal industry a face lift. Specifically, the company wants to be known as the residential friendly dumpster company.

approximately the size of a tow truck and their dumpsters are small enough to sit on one side of a two-car driveway so a vehicle can be parked beside them if necessary.

That residential friendliness starts with the professionalism of their staff, who show up on time in clean uniforms. It extends to the care they show for their customers, laying down a protective barrier between their dumpsters and customers’ driveways.

The company largely serves homeowners or contractors doing home re-modelling projects or some type of disaster restoration where they need to dispose of construction waste and other material that a municipal trash collecting service wouldn’t pick up.

And it also includes the dimensions of the equipment. The company’s trucks, bins and dumpsters are small in size, designed to go into and out of residential neighborhoods easily. The trucks are

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“The largest bin we have in size has the footprint of a typical SUV, a larger size SUV,” Bin There Dump That Vice-President and General Manager John Ferracuti explained during a recent interview from the company’s headquarters in Toronto, ON.

The company has been in operation for 11 years in North America, having started in Canada and expanded into the United States in 2011.

From Disaster to Franchising Mark Crossett founded the company in Toronto 14 years ago, Ferracuti said, and was hired by That Franchise Group to provide dumpsters for the clean up after it had had a flood in its basement. Because That Franchise Group owns and manages a number of home services franchise companies, Mike Kernaghan, who ran That Franchise Group, took an interest in Crossett’s business. Kernaghan noted that it was simple, easily replicable and scalable. In short, it was perfect for franchising and Bin There Dump That started franchising in 2003. Currently, it has 80 franchise territories across North America run by 64 franchise operators. The need for a business like Bin There Dump That is obvious, Ferracuti said. Everyone has trash they need to get rid of at some point and Bin There Dump That


argely serves homeowners or home re-modelling projects or e type of disaster restoration.” wants to give people a simple, affordable, clean and friendly way to get rid of construction waste.

Getting On Board Ferracuti, who joined the company in 2008, said they look for dynamic people with a general business background that focuses on customer service and sales and marketing. Their process for onboarding franchisees is structured and goes in stages, he noted. If the initial phone call and discussion goes well, they’ll do a webinar together with a potential franchisee, where they give the person a general overview of the company and the costs that will be involved. If that webinar goes well, the third stage is filling out the application and getting more information about the potential franchisee. The company then gives the franchisee homework to do that involves researching their own territory. This is so potential franchisees can educate themselves about their own market and potential competitors in the market. After that, it’s a second webinar where they talk specifically about marketing and then they encourage the potential franchisee to contact other franchisees in the Bin There Dump That system so they can talk to them and learn more about the company and be reassured that Bin There Dump That is a good company to get involved with. If everything has gone well up to that point, they introduce the Franchise Disclosure Document to the potential franchisee and assess the potential franchisee’s business plan. Then it’s time to talk about financing and how exactly that will happen. The final stage where a potential franchisee becomes an official franchisee is the discovery day, which can take place

either in Toronto or at the franchisee’s territory. “Visiting a new franchisee’s territory allows us to travel the city with them and understand what their city is like,” Ferracuti said, “and sometimes people prefer that.”

Training and Support The franchisee’s training starts with a welcome conference call from the entire support staff where they all introduce themselves and explain their role in helping the new franchise succeed. Then, a franchisee has three to five weeks of pre-opening training that has to be completed prior to them coming to Toronto for training. Once the pre-opening training checklist is complete, the franchisee travels to Toronto for a week of classroom and hands on training with the equipment, plus gaining some actual field experience working at a location in Toronto. They then go back to their territory and two to four weeks after their visit to Toronto, the new franchisee opens for business. The company’s first onsite support visit to new franchisees happens between 30 and 120 days after they open. The team spends three days with the new franchisee assessing the business and giving them any help they may need. Between the franchise opening and that first support visit, the new franchisee has weekly phone calls with support staff, who also monitor key performance indicators to make sure the new franchisee is on the right track. Over the course of the next few years, the company make themselves available on a scheduled and unscheduled basis so the new franchisee gets all the support they need. Plus, support also comes from their fellow franchisees in the form of Peer Performance Groups. These groups are Bin There Dump That franchisees that are at the same approximate stage of development. They help each other out via regularly scheduled calls and each peer support group meets twice per year.

Looking to Expand Currently, Bin There Dump That has locations and territories across Canada in all the major centers from Newfoundland all the way to Vancouver Island in British Columbia. In the Unites States, they are in about 15 states including Alaska, Texas, Utah and Florida. Territories are available across the continent and the company’s goal is to expand from their current 80 locations to 220 locations throughout North America by 2020.

Accolades Bin There Dump That works with charity organization Habitat for Humanity and they are the dumpster of choice for home renovation TV show The Property Brothers, which airs on the Home and Garden Network. They’ve also been a Top 50 franchise in the Franchise Business Review for two years straight years. Bin There Dump That is well on its way to reaching its expansion goals and the goal of being known as the residential friendly dumpster company. For more information visit: www.bintheredumpthat.com

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pro fil e by Gina Gill

A ll A bou t Lov ing Ca re

All About Loving Care Sherie Wright truly enjoys helping people and after working at a home health agency for many years, she decided to start her own business and be even more available to her clients. All About Loving Care, Inc. specializes in senior care, but rather than focusing on the medical side of the business, the company helps people live independent lives. The company started in 2009, but Wright has twenty years experience in the field of living assistance. Although, her previous experience focused on clients who were sick and involved skilled nursing, she was quite successful in that position even without any medical background. “I am not a nurse and I could see a need for a non-medical agency.” said Sherie. Sherie took business into her own hands

and started an agency that helps those in need but from a different standpoint. She wanted to help people live a more independent lifestyle, with reliable assistance.

Most of the clients at All About Loving Care are seniors, although the company considers anyone who needs assistance. There is a population of seniors who are not necessarily sick but may need support with the daily task of living such as bathing, shopping, respite, or chores, for example. Some clients may face debilitating circumstances, and some may only need help with light housekeeping, either way, All About Loving Care helps keep clients in the comfort of their own homes. Before becoming involved with living assistance, Sherie worked in a variety of fields including teaching for five years and later real estate. After working with a health agency, she knew her true calling. “I did marketing for another home health agency and I did very well, I just decided this is what I want to do with the rest of

my life and from that marketing position, I just started my own business,” explained the founder. “It’s been over twenty years that I have been doing this type of business.” Sherie is extremely passionate about what she does and believes her personal approach sets her apart from other homecare facilities. “When I take a client, I usually let them know that I am here for them. In other words my cell phone goes to bed with me. They know that if there is an emergency in the evening, or if they just want to talk with someone, they can always call me. They will not get an answering machine, they will get me,” said Sherie. Those interested in becoming a franchisee should possess a lot of passion and commitment. “First of all you have to have a keen sense of what seniors need and you have to love them. It is such a gratifying thing for me because a lot of them are very much alone. The family is probably away. They aren’t enjoying being dependent. They need a lot of nurturing, so you really have to be someone who has a great sense of caring for seniors,” said Sherie of potential franchisees. Sherie has also begun a non-profit agency for those needing assistance but may not have the ability to afford it. “I found that I was running around on Sundays cooking different meals for so many people and I just had to help them,” recalled Sherie. “The idea came forward where I can solicit donations and hopefully help more people. It is all new and I just started this year but I am very optimistic about it.” For more information visit: www.allaboutlovingcare.us

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All About Loving Care assists people to maintain independent living by providing assistance with daily tasks. These may include: personal care; companionship; help with meals, shopping or housekeeping; and assistance with the simple pleasures of life that they are unable to handle on their own.

Home Care Companion Care Loving Care Call Toll Free:

877 822 0211 www.allaboutlovingcare.us


ex per t advice

Adam Heitzman, Co-Founder and Managing Partner, HigherVisibility

Best Franchise Presentations on SlideShar e in 2014

While there are many resources out there for franchise owners specifically, it’s important to also remember some of the more general business resources that also have great franchise advice. In other words, if you’re really looking for a way to round out your franchise

ownership education as we enter into the New Year, you have to get creative.

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Following the right people on social media and using tools like Quora and Scribd.com are great ways to hear from the influencers in the franchise ownership space, but there is one resource that seems to offer some of the best hidden gems—Slideshare.net.

Top 7 SlideShare Franchise Presentations of 2014 For those who are unfamiliar, SlideShare. net is the world’s largest community for sharing presentations online. According to the website, it is one of the 120 most visited websites in the world with nearly 60 million unique visitors per month. Anyone can upload files and it’s free to use whether you’re uploading slideshows or

researching a topic. The website allows users to do several things: • Search for specific topics and find related presentations. • Upload a slideshow presentation you gave at a conference (or one you created specifically for slideshare if you’d prefer). • Follow specific people and companies to stay updated on their activity. • Create a profile page where all of the presentations you upload can be housed. Below are some of the best presentations that were uploaded about franchise ownership and management in 2014:


“If you’re really looking for a way to round out your franchise ownership education as we enter into the New Year, you have to get creative.” Digital Marketing: 4 Trends from Top Franchises

4 Hours to Franchise Success

By: Bluewater

This 25-slide presentation strikes a pretty rare balance of including a lot of information but still making it easy to understand even if you’re just reading the presentation. It talks about everything from the role of the competitor to changing your morning routine to using quickfire question and answer techniques, so it’s one not to miss.

This is a great presentation when it comes to statistics and images. It keeps your interest while still offering valuable information about the important topic of digital marketing. By looking at the trends of some of the top franchises—Starbucks, Pearle Vision, Wendy’s, Applebee’s, etc.—you can get ideas that might work for your own company as well as see which way digital success might be moving. The presentation actually lists out the four trends that they found so you don’t have to analyze the information for yourself. Hint: The first trend has to do with mobile!

Creative Marketing for Your Franchise By: Al Lautensiager, Entrepreneuer and Franchise Professional at Clients Workplace This 43-slide presentation talks about getting creative, which is one of the most difficult aspects of any type of company ownership. It delves into Guerrilla marketing, social media marketing, local community involvement, and much more. The best part: It spends several slides on content marketing and how to keep this creative and manageable at the franchise level.

Franchise Sales Marketing: Content Marketing By: Rachael Wachstein, Director of Content Marketing at Fishman Public Relations This is a cool presentation because it uses a lot of graphics to make points. Content marketing is only becoming more and more complicated, and many of these tasks are only heightened if you own a franchise. Wachstein helps make it easy to understand, and it’s clear that she has the experience to back up her points.

By: Franchise Success Formula

Franchising | Entrepreneur Roadmap | Franchise Well, LLC By: Washington, DC Economic Partnership. This presentation discusses the building blocks of franchise management including growth strategies for single vs. multi-site companies, operations for a successful business, and some key considerations when it comes to financial questions. Overall this is a pretty basic or beginner presentation, and it does a good job of keeping things organized and easy to understand.

Franchising and the House Doctors Franchise System By: HouseDoctors1 This presentation has a little bit of a sales-pitch at the end, which is never recommended or ideal, but it does offer some good information and statistics about franchise ownership. It talks about online reviews and the fact that people are moving farther and farther away from buying from small independents and moving toward companies who have the resources to build a brand they can trust.

Why Opt for a Franchise Model of Business? By: Dr. Jonathan D’Souza, Senior Medical Writer at Oxygen Healthcare Communications.

Adam Heitzman

It might seem odd coming from someone in the healthcare field, but this presentation makes some excellent points about why franchise expansion might be the right move. This is another beginner presentation, but it is organized by answering some of the most common franchise questions, so it’s a good one to look over if you’re still unsure if franchise ownership is the right move for you or your company.

Consider Using Slideshare to Share Your Own Franchise Expertise Getting started with your own slideshare account is incredibly easy. Simply visit the website and click the big orange “upload” button. Fill out a few details about your business, upload your presentation, and you’re set to go. This is an excellent alternate way to drive traffic to your website or websites as well as show off your expertise. If you’re interested in SEO, I also highly recommend checking out a great article which outlines some great presentations on optimizing your website. (http://www. seoagency.com/7-superb-seo-slidesharepresentations-we-saw-in-2014/) Adam Heitzman is the Co-Founder and Managing Partner at HigherVisibility, a nationally recognized SEO firm that offers a full range of Internet marketing services. For more information: Website: www.highervisibility.com

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Franchisee in Acti o n by Rob S w ystu n

PI RT EK

Former employee steps into role as FRANCHISEE FOR

PIRTEK

Franchising USA


“PIRTEK services, maintains, installs and replaces hydraulic hoses and fittings on various equipment.” Mike McArdle had just about the perfect working background to prepare him for buying a PIRTEK franchise in 2008: He already worked for the company. After spending four years working as a technician in a PIRTEK franchise in Charlotte, NC, McArdle then moved up the ladder and worked as the operations manager for three years in the franchise he would eventually purchase for himself. “Rather than continue to grow the business for the previous owner, I wanted to continue to grow it and prosper and own it,” McArdle said during a recent interview from his Charlotte headquarters. A business to business franchise, PIRTEK

services, maintains, installs and replaces hydraulic hoses and fittings on various equipment. All PIRTEK franchises consist of a storefront, and a fleet of vans to perform on-site service. It was this servicing of larger vehicles and machinery that drew McArdle to PIRTEK. Armed with a science degree and 15 years of experience in the automotive industry as a technician, McArdle easily found a home inside a PIRTEK van. “I loved being in the mechanical field,” he said, “but I wanted to grow and get outside the realm of servicing vehicles and to service larger equipment.”

Top Notch Support Once he bought his franchise, PIRTEK provided him with training to become a franchisee. McArdle was now President

and General Manager of the Charlotte store with the help of PIRTEK’s training and their willingness to send him help when he needed it. The company provides an excellent training package and support for franchisees, McArdle noted. Representatives will help with all aspects of franchising, including billing, growing the business, attracting new customers, and training technicians for the vans that provide the mobile service. PIRTEK provides him with ongoing customer support, the Charlotte franchisee said, and has representatives that help with support for new technicians. PIRTEK also provides hands on support and continuing education to franchisees. Other forms of support the company offers include finding a suitable location,

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Franchisee in Acti o n by Rob S w ystu n

PI RT EK computer engineers, franchisees in other industries, manufactures or veterans, the PIRTEK website says. Ideal PIRTEK franchise owners need only have a love for building a winning team that can provide solutions for businesses within their community.

Looking to Expand For McArdle, the work life balance since becoming a franchisee has been good. He estimates that he puts in about 50 hours per week, which is less physical work than he used to do, but more mental and administrative work with the increased financial responsibilities. However, the long hours don’t take away from the fact that it’s great to be an entrepreneur and great to work for himself and see his own business grow. Growth has been so prolific, in fact, that in January of 2014 he purchased another PIRTEK franchise in Gastonia, a suburb of Charlotte, and he hopes to purchase a third one in the near future. For anyone interested in joining PIRTEK, McArdle said, they should realize that it sometimes starts off slow, but if you follow the PIRTEK system that’s in place, you will be set up for success. Once you stabilize the business and get everything in place and the system starts to pay off, it’s an extremely rewarding experience. “It’s great to own your own business and be the captain of your own ship,” he said. While he did consider other franchises, PIRTEK seemed to fit his needs best, McArdle said, and if someone is looking for a mechanical or engineering type of franchise, PIRTEK is a good one to get into. determining the right certified training program, help with exhibiting at trade shows, plus the company holds an annual owners’ conference. It has been a recipe for success. McArdle’s PIRTEK locations have experienced higher call volumes, which have led to increased revenue. As a result, McArdle has hired additional employees, purchased new vans and opened a second location.

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No Need for Hydraulic Experience While McArdle had relevant work experience and background from working in the automotive industry, PIRTEK franchise owners do not need hydraulic or mechanical backgrounds. Prior to joining the company, many of its franchisees were sales people, managers, finance professionals, contractors, marketers,

With its US headquarters stationed in Rockledge, FL, PIRTEK now has three corporate locations, 48 franchises in the U.S. The company started in Sydney, NSW in Australia back in 1980 and is currently active in 23 countries with about 400 locations worldwide. And if it’s up to McArdle, there will be another location added to that total soon. For more information visit: www.pirtekusa.com


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Franchising USA


ex per t advice

Dzana Homan, CEO, School of Rock

Children’s Service Franchise Systems are Growing Up

How One Franchise is Rockin’ Its Way to the Top According to FranchiseGrade, the children’s service sector has seen franchised outlets increase by 12.1 percent since 2010. While children’s franchises represent only 2.1 percent of the industry outlets, they account for a staggering 6.3 percent of industry outlet growth. As a nine-billion dollar industry in the United States, the demand for

supplemental education services has never been greater as schools across the nation continue to experience budget cuts, resulting in a decrease in music, art and other cultural enrichment programs. Furthermore, the U.S. Census Bureau projects the population of children in America to surpass 80.3 million by 2030, which has led to larger class sizes and increased competition in the classroom. As a result, more parents are seeking unique enrichment programs to help develop their children’s talents and abilities. Among the child’s services segment, School of Rock serves as a strong reflection of the sector’s advancement. Since 1998, we have inspired more that 50,000 students to rock on stage and in life, instilling teamwork and selfconfidence in our students through a unique performance-based approach. Our goal at School of Rock is to encourage our students to realize their potential as artists, put them on stage in front of as many people as possible and help foster a new generation of incredible musicians. With more than 150 schools in eight countries, we will continue transforming the lives of musicians worldwide as the leader in performance-based music education.

Dzana Homan

Franchising USA

Our series of programs are specifically designed to lead each student through their unique musical journey, emphasizing that music is not just about playing an instrument; it’s about playing on a team as well. In addition to individual private music instruction, students also learn

how to jam with their peers in a weekly practice session, culminating in live concerts at world-renowned venues. This unique teaching method results in students who are more inspired to learn and more motivated to excel. Not only do they develop into talented artists, but they establish a work ethic, learn about teamwork and gain confidence that they can take with them throughout their lives. From preschoolers to seniors, the diversity of our music programs and students will continue to be a driving force of our success. We have found that live performances are one of the best ways for serious young musicians to get a taste of what a professional music career is like. Emboldening students from the lesson room to the stage, our programs designed for all skill levels develop both their confidence and musicianship. To date, our students have played thousands of concerts at such legendary venues as CBGB, The Roxy, Red Rocks and BB King’s Blues Club in Times Square. We have also performed at music festivals around the world, from Lollapalooza, Gathering of the Vibes and Austin City Limits, to Zappanale in Germany. It’s wonderful to be able to offer our students the most inspirational experiences in performance-based music education by partnering with iconic musical forces and giving them the opportunity to play alongside their idols through our guest professor workshops. What truly sets School of Rock apart


in the music education sector is our AllStar program. Each spring, students from across the country audition for the AllStars, a group of top students that embarks on a summer tour, complete with tour buses and multiple live shows throughout the country. For the past three years, we have also teamed up with Love Hope Strength, a charity benefiting rock musicians and others with cancer. Partnering with a music-centric charity that aligns with the values of our students is one small way we inspire them to become better citizens and positively impact their communities through music. Our students have added over 1,000 names to the bone marrow donor registry that have resulted in 18 potentially lifesaving matches. Another factor driving our growth is our unmatched ability to foster the next generation of musicians, leaders and innovators through the power of music. The impact of music on young people is profound, and School of Rock is redefining and perfecting music education for the upcoming generations. Numerous studies link early music education to academic and professional achievement. The students who graduate from our programs leave with an incredible set of social and academic skills

“Music is not just about playing an instrument; it’s about playing on a team as well.” not taught in high school classrooms — not to mention a giant social network of fellow students across the globe. Many of our students go on to pursue accelerated music programs or join nationally touring bands, while others become leaders in their field or entrepreneurs. Regardless of the career path they pursue, School of Rock students develop numerous skills that will benefit them for the rest of their lives. The success of our students can be attributed to our global network of extremely talented and dedicated franchisees and our relentless commitment to their success. As a result of our franchisee-centered model, we have experienced significant growth through existing franchisees who have invested in multiple locations. In the coming months, I will continue to focus on fostering the relationship between our corporate team and the individual schools to ensure we are continuing to provide an immersive experience that inspires our students to be their best and builds upon our passion-driven culture. As the children’s services franchise sector

continues to ‘grow up,’ I look forward to expanding our global footprint and helping our system prosper as the worldwide leader in performance-based music education. In my new role, I will pursue aggressive growth of the chain by harnessing the momentum that has already resulted in nearly 30 new schools in 2014 in the U.S., Mexico, Australia, Canada, Chile and Brazil. To reach our goal of opening 150 new locations by 2019, I plan to launch the company into its next phase of growth by introducing new programs and services, forming more industry partnerships, and expanding our franchise network with the most passionate and dedicated individuals in order to meet the growing demand for quality music education. Dzana Homan is the CEO of School of Rock, the world’s leading performancebased music education franchise. Prior to School of Rock, she served as COO of Goddard Systems Inc., an earlychildhood education franchise, and CEO of Huntington Learning Center. Homan holds an M.S. in electrical engineering and physics and a B.S. in piano. For more information visit: www.schoolofrock.com

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ex per t advice

Page 21


h o m e serv ices franchising

Featu re

Home Services

e r u Feat

Busy Lives Create Opportunity for Home Service Franchises Because they are primarily tied to houses, home services are affected by the real estate market. When the market is good, there is a need for these services whereas when the market slows, so too can a home service franchise’s business.

The Spice of Life One of the best aspects of the home services franchising industry is the amount of variety it offers.

The one thing you can never get more of is time … but is that true? If you hire someone to do something for

you, that then frees up your time. It’s using this simple philosophy that home service franchises ply their trades.

When you can affordably offer the

opportunity to give people back the time they lose on mundane chores, you’ve got a large pool of customers to draw from. As the economy continues its recovery

from the last recession and people start

loosening up and getting comfortable with spending disposable income regularly

again, the home services industry will only continue to grow.

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What is a Home Service? It’s simple to identify what would constitute a home service. Is it something you’d put on your chore list? If so, it is likely there is someone you can pay to do that job. Cleaning, carpet cleaning, pool cleaning, home repair, pet grooming, home delivery, junk removal, security … the list goes on and on. Anything that people find a pain to do themselves, they will be willing to pay to have done. In the International Franchise Association’s Franchise Business Outlook for 2014, the organization predicted that revenues in the Personal Service franchise sector (where most home services fall under) would expand by 3.7 percent in 2014.

Outdoor Living Brands, for example, has four different home services franchises under its brand umbrella, yet they are all different. Archadeck builds decks and other outdoor features, Outdoor Lighting Perspectives does landscape lighting, Mosquito Squad pummels pests and Renew Crew revitalizes outdoor home features. But the home services franchising industry also includes: • delivery; • home care assistance; • home inspection; • home moving; • junk removal; • lawn care; • pet home services; • plumbing; • security; • HVAC; • flooring; • landscaping;


• concrete; • moving and storage services; • at home seniors care and more. From general home care like painting to extremely niche types of service like barbecue cleaning, the home services franchising industry has something for everyone who wants to get involved. In its list of 2014 Franchisee Satisfaction Award winners, Franchising Business Review cited home services franchises as gaining in popularity. And another trend in franchising that is helping more people realize their goal of owning and operating their own business is that some higher investment franchises are now offering lower investment packages. MaidPro, for example, has introduced the lower-cost “Select Model” option for candidates with less than $50,000 to invest in a franchise. “We’ve seen that lowering the minimum investment and offering additional financing has really helped potential franchisees start a MaidPro, when in the past they would not have been able to do so,” CEO Mark Kushinsky pointed out. Other franchises like pest extermination franchise Truly Nolen have gone in the other direction and have actually upped their entry level fees to ensure that their franchisees are in a position to be able to succeed. A bit of welcome news for potential franchisees in the home services sector is that more franchises are starting to offer their own internal financing systems, like Weed Man. This is to ensure that if the franchise identifies a good potential

“Anything that people find a pain to do themselves, they will be willing to pay to have done.” candidate that it can bring that candidate on board without having to worry about them not being able to procure funding from elsewhere. Sometimes this just means having people who help franchisees locate funding and other times the franchise itself will help with startup funding.

Put a Spin On It If anecdotal information is anything to go by, franchises that have a unique spin on a traditional service are a great opportunity. When co-franchisees Harry Ehrlich and partner Jay Gallant opened their WOW 1 Day Painting franchise in New York State, they were overwhelmed with the response from the public. “In August, we’re probably going to hit three times our projections,” Gallant said in early 2014, “and I thought we were being a little aggressive with our projections.” The twist on traditional service that WOW 1 Day Painting offers is right there in the name. Whereas other painting companies will send a small team and paint over several days, WOW sends a large team to paint over just a single day. The two co-franchisees cited the superb support from the parent company as part of the reason they were so successful.

WOW is partially owned by one of the same people behind the wildly successful and ubiquitous 1-800-Got-Junk? Another franchise with a unique twist is the Men in Kilts window washing service. But, don’t let the cute gimmick fool you, the business goes beyond simple Scottish fashion. “At some point, you have to get over the kilts and focus on differentiating the business. Our service goes far beyond the gimmick,” CEO Tressa Wood told Franchise Business Review.

Franchise Support Key to Success The amount of support that a franchise gives to its franchisees is a key factor in determining how successful it will be. The more training, support and marketing help a franchise can offer to its franchisees, the better it will make them and the better it will make the franchise system as a whole. WG Storage and Delivery in Texas, for example, provides both on-the-job and classroom training in Austin for its franchisees and continues that training in the franchisee’s territory. WG also helps new franchisees find a facility location, helps them get their trucks in order, helps them buy the necessary equipment and assists them with the hiring process. Once

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h o m e serv ices franchising

Page 23


h o m e serv ices franchising

Featu re they’re set up, WG continues to help out franchisees with marketing and strategic planning. Some franchises lend support to their franchisees by way of administrative services. Game Truck, which hosts video gaming parties, has its Power Ups team, which takes care of mundane administrative tasks for franchisees for a small fee. Plus, it also has a national sales team that fields inbound calls for its franchisees so they never miss a call and can concentrate on running their business. When deciding on a franchise to buy, the support offered is one of the most important items to consider. Solid support is an indication that the entire franchise system in place is healthy and that the franchise has everyone’s best interests in mind.

At-Home Senior Care Perhaps the biggest opportunities in home-based franchising are in the seniors home care market, specifically. The aging population of baby-boomers is going to need some tender loving care as they progress into their twilight years. But, they also want that TLC in their own homes rather than having to go somewhere else for it because it’s often more comfortable and more affordable. An ABC News report says the growth of non-medical at-home care will be huge. This type of care can include assistance with bathing and grooming; help getting in and out of bed; help with housekeeping, meal preparation and laundry; and will be necessary for more people in the future. By 2020, the number of home health and personal care aides will swell by 1.3 million—a 70 percent increase from 2010, according to the Bureau of Labor Statistics. And they’ll likely all be needed, as every day more than 10,000 Baby Boomers are turning 65, according to Synergy HomeCare CEO Peter Tourian. That’s a lot of opportunity waiting for entrepreneurial-minded people.

Most Satisfying Franchises For home services franchises, Heaven’s Best Carpet Cleaning and MaidPro

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“When deciding on a franchise to buy, the support offered is one of the most important items to consider.” took the top two spots for franchisee satisfaction in the Cleaning and Maintenance category of 2014 Franchisee Satisfaction Awards from Franchising Business Review. In the Home Services category, franchisee satisfaction was tops at: • CertaPro Painters • Budget Blinds • Miracle Method Surface Refinishing • WOW 1 Day Painting • Surface Specialist Systems • ASP - America’s Swimming Pool Company • AdvantaClean • Pillar To Post • HouseMaster

Senior Care and Visiting Angels took the top two spots. Whether you choose outdoor yard maintenance, indoor cleaning services, seniors home care or you find a more specialized niche to fill, home services franchises have a business opportunity to offer everyone. Most also have deals for veterans. If you enjoy making people’s homes more liveable, a home services franchise may be right for you. About the author: A former journalist, Rob Swystun, has been writing professionally since 2006 and now concentrates on freelance writing. He lives in Winnipeg and is currently an Athabasca University student studying for a BA in Communications.

• Go Mini’s • ShelfGenie • HandyPro Handyman Services • The Glass Guru • Screenmobile • Granite Transformations In the Senior Care category, Home Instead

Look out for our next special feature: Business Services Franchising


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pro fil e

L ittl e Ca esars

Convenience, Quality and Value Little Caesars Pizza Has the Recipe for Growth restaurant operators to add new franchise units into previously untapped markets, we anticipate that consumers and franchise developers alike will be eager to connect with Little Caesars Pizza’s globally recognized brand name,” said Ed Ader, director of franchise development for Little Caesars.

When you’re the fastestgrowing carryout pizza chain in America,* you’re obviously doing something right. Or, in the case of Little Caesars, you’re doing many things right. The company isn’t even thinking of resting on its laurels, however. Instead, it’s actively working toward even more growth, by targeting communities across the country through an aggressive multiunit franchisee growth strategy. These communities are poised for growth, and provide excellent opportunities for franchise developers who want to be associated with a leading national brand and a simple business model. “As we implement our strategic plan focused on bringing in experienced

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In addition to in-line shopping center and strip mall locations, the expansion plan also includes opportunities for franchise locations to open in non-traditional franchise venues—unique settings like convenience stores, college campuses and military bases, to name just a few. The beauty of this model is that Little Caesars Pizza will work closely with its franchisees to develop locations with customized architectural and build-out plans. That design flexibility makes it an attractive fit for all kinds of venues.

A Brand You Can Believe In Year after year, for more than a decade, Little Caesars Pizza has experienced significant growth. The company is planning for the continuation of this trend with this franchise expansion program, and an unwavering focus on providing high quality products with great value for a low price. In fact, Little Caesars Pizza has been named “Best Value in America”** for seven straight years, and the brand appeals to consumers on several levels. “Little Caesars Pizza takes pride in its ability to connect with consumers on what matters most to them,” added Ader “Whether it’s

our HOT-N-READY® pizza or famed

Crazy Bread®, our loyal and growing fan base is looking for a great value, and we

consistently deliver on our promise to do just that.”

The brand equity built throughout the

past six decades, along with the proven

Little Caesars Pizza business model and ongoing franchisee support, are driving

the company’s growth. Couple that with the brand’s high quality, affordable

products that are ready when customers

are, and you’ve got a recipe for remarkable consumer convenience and value.

Building on Franchisee Success Little Caesars provides qualified

multi-unit franchisees with the tools

they need to follow the brand’s proven system, including ongoing training,

architectural services to help with design and construction, preferred lenders to

assist with financing, sustained research and development of new products,

and continuing, effective marketing promotions.

* “Fastest growing carryout pizza chain in America” based on the net number of stores added 2008-2013 ** “Highest-Rated Chain - Value for Money” based on a nationwide survey of quick-service restaurant consumers conducted by Sandelman & Associates, 2007-2013

For more information about Little Caesars and available franchise opportunities visit: www.Franchise.LittleCaesars.com or call 1-800-553-5776.


Page 27

A FRESH WAY TO FRANCHISE!

Add The Best Value in America* to your portfolio Multi-unit franchising opportunities available

Visit LittleCaesars.com or call 800.553.5776 *“Highest Rated Chain - Value For The Money� based on a nationwide survey of quick service restaurant consumers conducted by Sandelman & Associates, 2007-2013. 47233

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ex per t advice

Tariq Farid, Founder and CEO, Edible Arrangements

Ignoring Emerging Technology Puts Your Company at Risk From wearables, to 3D printing, to phablets, to cloud computing, to smart machines, it seemed at times as if it was impossible to keep up with the pace at which technology was evolving over the past year. And the speed will only increase in 2015. Are you ready? Is your business? I was lucky enough to have become a “technophile” early in life. From the day I opened my first flower shop as a teenager, I recognized that by unleashing the power of technology I could significantly enhance my marketing capabilities, streamline my operations and provide the means to drive sales like few other tools. In fact, I created my first technology company because of an inability to find “off-the-shelf” solutions that met the needs of my business. There is no doubt that we were able to grow Edible Arrangements into a global icon so quickly because of our ability to embrace and take advantage of emerging technologies that allowed us to be more efficient, effective and have a farther reach. Interestingly enough, however, I have found that there are many companies that still don’t understand the positive impact

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that technology can have on their business. This seems especially true in franchising and, to a degree, that is understandable. Keeping up with advances in technology can be overwhelming and even a little scary. Not adapting to emerging technologies, however, guarantees that you risk falling behind your competition and, over time, will do so at a faster and faster rate. Take the dramatic expansion of mobile technology, for example. Perhaps the biggest opportunity for the franchise community is in the area of mobile computing. If your online marketing and communications strategy is built around the static desktop environment, you are already at a disadvantage. Today’s consumers are on the move and expect you to move with them and be there when they want you and where they want you, whether it’s on their phone, their tablet, their laptop, their smart glasses or maybe even their game system. Your ability to transfer your message and your brand quickly and seamlessly between platforms is critical and will become even more important in the coming year. Your customers want immediate access to your locations, to online ordering, e-payments and individually customized promotions. They want to share their experience with friends as easily as they share holiday photos on Facebook. In the restaurant industry alone, a recent survey showed that more than one-third of consumers are now more likely to use technology related options than they did just two years ago. And nearly one-third who own smartphones say they would prefer to use them to pay for their check instead of cash or a credit card. Most are already using their devices to check out menus, read online reviews, and place orders. From an operational standpoint, the same is true. Just like your customers, your field staff and your franchisees essentially manage their lives through their mobile devices so

“I recognized that by unleashing the power of technology I could significantly enhance my marketing capabilities.” it only makes sense that they want to run their businesses from them too. No longer are they sitting behind a desk checking emails and reviewing sales data. They, too, are on the move and need the tools that fit their new mobile world so that they can spend more time focused on growing their business rather than running it. What can we expect as technology evolves? Franchisees will be able to access realtime sales data from their stores and provide immediate input to their teams while on the road. Store managers will have the ability to update digital menu boards or even change the store’s background music from their phones. Training? Advances in digital imaging will make it easy to create training or best practices videos that can be updated and shared immediately. Field teams can already upload photos and videos during compliance visits, providing more accurate documentation of how things are going. Next will be the ability to conduct virtual audits of stores along with both franchisees and the corporate office in real time, creating better and more effective communications between franchisor and franchisee. In the area of franchise development, the sales team will have the ability to continue the monitoring, nurturing and management of their leads while out on the road closing deals. These are just a very few examples of the ways that forward-thinking franchises are already beginning to embrace technology. They realize that the old way of doing business has been turned on its head. The old approach of taking the entire desktop view and trying to squeeze it into a mobile environment didn’t really work then, and it certainly doesn’t work now.

Tariq Farid

All tools — from the company website to the training program — must be designed for mobile application first and then, if necessary, they can be converted to a more static desktop format. Voice and video capabilities will become more important text-based capabilities. Speed and flexibility will rule. The bottom line is that everyone — from customers to your franchisees — expect technology to make their lives easier. In fact, that is the point of technology — to make life easier. Does your technology do this? The coming year promises many more exciting advances and breakthroughs when it comes to technology. And the franchises that take advantage of these breakthroughs will have a tremendous advantage over their competition. Those who do not take advantage will quickly find themselves falling farther and farther behind. Tariq Farid, founder and CEO of Edible Arrangements, just launched his second technology company, Naranga, providing a total suite of technology solutions for the franchising industry. For more information visit: www.ediblearrangements.com or www.naranga.com

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january 2015

Veterans in Franchising www.franchisingusamagazine.com

Veteran’s Success as

Cartridge World Franchisee

Franchising Gives Back

Leveraging

Military Experience for Franchise Success

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To work independently To your workown independently To set work schedule To work independently To set your own work you schedule To work at something enjoy To set your own work schedule To To work at something you enjoy control your own salary To To work at something you enjoy control your own salary To control your own salary

Want To Be Your Want To Be Your Want Be Your OwnToBoss… Own Boss… Own Boss…

“BUILDING AMERICA WITH AMERICAN HEROES”

www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com www.VeteranFranchiseAdvisers.com “BUILDING AMERICA WITH AMERICAN HEROES”

© ASUKA Inc. 2014

Veterans make great franchise Veterans make greattraining franchise owners! Your military has Veterans make great franchise owners! Your military training has taught you many things that transfer owners! Your military training has taught youthe many things that transfer well into world of franchising. taught youthe many things that transfer well into world of franchising. well into the world of franchising.

Take Control Of Take Control Of Take Of YourControl Future… Your Future… Your Future…

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V eterans in F ranchisin g S upplement january 2 0 1 5 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com

Contents Cover Story

News & Expert Advice

34 Veteran’s Success as Cartridge World Franchisee

40 Leveraging Military Experience for Franchise Success Jim Mingey, Veterans Business Services

Profiles

42 VetFran News Franchising Gives Back

44 Cartridge World

2015 Volunteer Event to Support Veteran’s Village in Las Vegas

Focus 36 JDog Junk Removal & Hauling 38 Sherpa Kids International Franchising USA


V e t erans in Franchising

C over S tor y - Cartridg e Wo rld

Veteran’s Success as

Cartridge World Franchisee

Veteran John DeBroux has mastered many things over the decades, but the one thing he just can’t manage to figure out is retirement. DeBroux has retired multiple times from both military and civilian careers and instead of kicking back and enjoying his twilight years, he’s gone ahead and opened a successful Cartridge World franchise instead. Located in Conyers, near Atlanta, GA, DeBroux’s Cartridge World opened its doors in June of 2007 after he retired from a 27-year career at Eastman Kodak.

John DeBroux

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Cartridge World sells printers and printing supplies for home and business use. Unlike the superstores, they’re printing experts,

offering advice on printers and supplies that help customers “save time, save money and print great.” In fact, customers can save as much as 30 percent off the price of superstore cartridges. Cartridge World is great value for home and business customers. Combining the right printers with high-yield printer cartridges can save hundreds of dollars for business customers. Plus, the company offers free delivery to local businesses. One of the biggest selling points for Cartridge World is recycling. The company sells both new and remanufactured printer cartridges. They can remanufacture printer cartridges several times before they send them to an actual recycling facility where they are disassembled so the metals and plastics in the cartridges can be recovered. The company remanufactures cartridges to the original printer manufacturer’s


“The cartridges printed with the same color and quality as the original manufacturer’s cartridges, and he was sold on the product and service.” standards. And contrary to what the printer companies say, using a remanufactured cartridge won’t void the warranty on their printer, DeBroux said. “We don’t toss them in the trash can when we’re done with them,” DeBroux said during a recent interview from the Buford, GA Cartridge World where he was helping out a fellow Cartridge World franchisee. “We send them on to the recyclers and keep them out of the landfill.” DeBroux said he was actually surprised that customers are often more focused on the recycling rather than the cost savings, which is what he first focused on when he started.

Serendipity DeBroux discovered Cartridge World while he was working with Eastman Kodak. About a year before he retired, he was thinking about what he should do when he finally retired from the company. At lunch one day, he was listening to a local consumer advocate show on the radio in Atlanta hosted by Clark Howard. A caller to the show asked Howard what he does about the high cost of printer ink and Howard said he takes his cartridges to Cartridge World and trades them in for a fresh set, saving a bunch of money in the process. DeBroux just happened to have a bunch of empty ink cartridges in his car at the time. He was planning to buy all new cartridges, but when he got back from lunch, he looked up Cartridge World and he found out there was one just down the street. So, when he got off work, he took his cartridges in, got a new, full set of remanufactured cartridges and used them on the photo project he was doing at work. The cartridges printed with the same color and quality as the original manufacturer’s cartridges, and he was sold on the product and service. As retirement from Eastman Kodak

approached, DeBroux was talking with his daughter Renae Adams who also wanted a career change. So, father and daughter went into business together. Later, DeBroux’s other daughter, Kimberly Cassidy came on board. “Renae is the manager, Kimberly is the counter salesperson and she’s also the production manager,” DeBroux said. “It’s actually ended up being a great family business.”

Military Service Out of high school, DeBroux joined the U.S. Air Force in 1964. He didn’t know what he was going to do so the Air Force did an aptitude test on him and decided he would perform best in a mechanical field. So, they trained him as an electrician. He went to Vietnam as an electrician and after he came back, he was discharged in 1969. Later, DeBroux got a job with the City of Atlanta and worked for them for 13 years before he got a job with Eastman Kodak where he worked as a Facilities Maintenance Supervisor. While he was with the City of Atlanta, DeBroux decided he wasn’t yet done with military life and joined the Georgia National Guard for weekend duty. He stayed with them for 26 years and retired as a senior master sergeant in 1996. DeBroux said he enjoyed his time in the military immensely and it was there he learned the value of doing the very best you can at whatever job you’re doing. He also learned the value of creating longlasting relationships with people built on friendship, something he’s carried over into his civilian careers, including Cartridge World. And it’s paid off for the business. “I really enjoy the people, the customers that come in,” he said. “And overtime, the friendships that develop. I have customers who come by and they don’t need anything, but they’ll just stop by and

say ‘Hello, how are you?’ It’s just a really pleasant atmosphere.” It also helps that he and his daughters go above and beyond selling printer cartridges. They help customers troubleshoot problem printers and help them decide which printers are best for them when they need a new printer.

Franchising Process When Cartridge World originally met DeBroux and Adams, they mutually agreed that the father-daughter team would be a good fit for the franchise. It also helped that the two already had their funding in place. They signed their agreement and worked in one of the local Cartridge World stores to get training for a week. They then went to California for further training in all aspects of the business. A unique aspect of Cartridge World is the monthly newsletter the company publishes and distributes to all its franchisees. Plus a franchise-wide intranet. The company also holds two meetings per year for owners so they can network with each other. If you have an over supply of cartridges, you can advertise them in the newsletter and some other store owner may need them and take them off your hands, DeBroux said. The ideal situation is to trade and swap products between stores. It’s a very co-operative franchise environment.

Another Retirement Now that his daughters are operating the business pretty much on their own, DeBroux is planning to step away from the store so he can pursue his other interests: more work. But this work is decidedly different. DeBroux works with Partners for Christ building churches and also works with the Rockdale Rotary Club building handicap ramps for people. He is also active with Honor Flights for veterans, among other pursuits. As DeBroux says, he believes he has another 30 years in him and no matter how many more times he retires, he’ll always find a new interest to keep himself busy. For more information visit: www.cartridgeworld.com

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V e t erans in Franchising

J Dog Junk Removal & H auling

Veterans Only Need Apply JDog Junk Removal & Hauling is Building a Business for Those with Military Skills

“We liken JDog to personnel a foundation o Franchising USA


Jerry knew he wanted to create a life that would not only utilize the work ethic and disciplinary skills he acquired in the Army and suited his personality, but would also withstand the recession so he could continue to support his wife and two daughters.

Jerry Flanagan

The transition from active duty military to civilian life is not easy for anyone. All too often enticing corporate programs and direction from career advisors muddy the workforce landscape and veterans end up in a career path that does not suit the skills and work ethic learned during years of military training. This was a similar path for Jerry Flanagan. Jerry served in the U.S. Army from 1987 to 1989 and achieved the rank of E-4 Specialist. After the Army, he attended college and technical school on the GI bill. But after leaving the Army, he found himself filling various management positions in the retail and corporate world that did not suit his training and background, nor did they offer the type of active work environment in which he could thrive.

“I experienced first-hand the difficult decisions that come with the transition from military to civilian life. After many trials, I discovered the successful connection of military skills with small business ownership that is often overlooked when veterans try to find the best next step in their careers,” said Jerry. In 2011, Jerry started hauling junk around the Philadelphia area and JDog Junk Removal & Hauling was born. His new business offered an outlet for his career change from the retail to service industry while avoiding the risks of a downturn in the economy from the ongoing demand and the high margins of the business model. The fast success of JDog Junk Removal & Hauling came from customer service and a business model built on the core values learned in the military – respect, integrity and trust. “With my success using this business model, I realized there was something bigger I could do to help other veterans like me, and the increasing veteran unemployment cycle, achieve the American dream of small business ownership,” said Jerry. “We liken JDog to a ‘movement’ among military personnel

and their families, built on the foundation of respect, integrity and trust – values veterans and their families relate to.” JDog Junk Removal & Hauling began franchising in 2012 and has since staked its claim as the only U.S. franchise business devoted solely to military veterans and their families. The franchisees that have joined the movement have found sustainable income opportunities and a better work-life balance for their families as they transitioned into civilian life. This movement appeals to veterans who prefer to be entrepreneurs, where they can operate according to a proven business manual and maintain an active, flexible work schedule that revolves around the sound values and work ethic that are established in a military career. Because of military downsizing, veterans are especially in need of work and career opportunities. The transition from military to civilian life is tough and competition is steep. Military veterans are successful franchisees because they are comfortable following structured systems and understand how to operate within teams. Jerry adds, “The main goal driving the success of JDog is our desire to support other veterans and provide them opportunities for professional and personal success.” For more information visit: www.jdogjunkremoval.com

a ‘movement’ among military and their families, built on the of respect, integrity and trust.” Franchising USA

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V e t erans in Franchising

Sher pa K ids I nter national

Sherpa Kids International

Launches in Ireland St. Joseph N.S Sets Trend for After School Care with Sherpa Kids St. Joseph’s National School, Clonakilty has become the first school in Ireland to set the trend in offering primary school going students after school care with Sherpa Kids Ireland. Sherpa Kids Ireland aims to roll out the service throughout Ireland within the next 10 years through over 50 franchisees, creating more than 2,000 new jobs servicing over 10,000 families. Sherpa Kids International was founded in Australia in 2011 off its sister company

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from New Zealand which was founded in 1996, in response to the huge demand for professional outside school care services which promotes and caters for each individual child. Since its inception it has expanded to eight countries with Ireland becoming the latest to roll out the successful model under the directorship of Clonakilty based John Miles who has become Country Master Franchise, Managing Director of the Sherpa Kids franchise in Ireland. The Sherpa Kids service operated in St. Joseph’s NS school grounds provides care to participating students Monday to Friday from 3-6pm and is led by fully qualified and trained childcare professionals. The service is run on site at the school with its own management system which is wholly

independent to the running of the school itself. Speaking of Sherpa Kids Ireland, Managing Director John Miles said, “I am thrilled to launch Sherpa Kids Ireland with St. Joseph’s NS as the pilot school. As a dad myself, it is important for me to know that children will be safe and happy among trained professionals and classmates. Not only will they experience an array of fun and educational activities, they will also have the opportunity to complete their homework while attending Sherpa Kids. For parents, the model takes the stress out of leaving work early or arranging to have your child catered for elsewhere. We offer a professional on site after school service and look forward to working with other schools throughout West Cork in


the weeks and months ahead that would benefit from our service.”

He continued, “Sherpa Kids Ireland also

offers a unique opportunity to those who have a passion for childcare and want to

become their own boss with franchising opportunities.”

Vicki Prout, Co-Director, Sherpa Kids

International who is based in Australia was also on hand to officially launch Sherpa Kids Ireland at St. Joseph’s

NS. Speaking at the launch she said,

“Thousands of parents are frantic for

affordable, high quality outside school

hours care. More than ever, more parents are employed or are working more

demanding hours and transport issues can make the school-to-work, work-to-school transition a stressful daily chore. Sherpa Kids has answered the demand for care

with a franchise model that offers school communities the best of both worlds;

strong expertise in childcare and a local

heartbeat with local leaders that puts kids and families first.”

Ms. Adrienne Downes, Principal, St.

Joseph’s NS also spoke of her delight with the new service saying, “I am thrilled that St. Joseph’s has become the first

school in the country to introduce Sherpa Kids Ireland. It is fantastic to have such a professional service available in the

school with its own management system to

support its structured programmes through activity based themes that supports the school’s curriculum. It means that the children can remain in a setting they

are familiar with, with their friends, and experience a fun learning environment while parents have peace of mind. It is

certainly a service that will aid many more families throughout the country.”

For further enquiries please contact Vicki Prout at: E: Vicki@sherpa-kids.com T: +44 7760 436405 I: www.sherpakids.ie or

www.sherpa-kids.com

Franchising USA

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V e t erans in Franchising

Jim Mingey, Veterans Business Services

Leveraging Military Experience for Franchise Success Lieutenant Colonel David Robinson completed his due diligence and selected ARCpoint Labs as his franchise of choice.

David Robinson

There couldn’t be a more suited military candidate for this franchise opportunity. David’s 23 years of military experience as a communications officer with tours in both Iraq and Afghanistan and his current position as a Reserve Battalion Commander at Ft. Carson, CO made him more than qualified to run a successful medical testing franchise. His history of supporting military members through his role as a Unit

Franchising USA

Prevention Leader (UPL) and through his involvement with the Army Substance Abuse Program(ASAP) has also helped him to see the importance of utilizing drug testing services for the military through his new franchise in Boulder, CO. Not only has David’s military experience complimented his franchise choice, his civilian sector experience has also greatly positioned his company to offer services and solutions which will benefit the community. Currently, David is very involved in the civilian sector through his position as a Reserve Peace Officer in which he volunteers his time two to three shifts a month. He is actively involved on the board of Colorado Mothers Against Drunk Driving (MADD). His training includes


conducting Standardized Field Sobriety Testing and Advanced Roadside Impaired Driving Enforcement (ARIDE). David anticipates that his new franchise will address the needs of the law enforcement community and the possible need for DNA & Forensic testing in the future. David was able to make the decision of selecting ARCpoint Labs through the support of Veterans Business Services (VBS) and will continue to receive support with his goals to capture government contracts as a Service Disabled Veteran Owned Small Business (SDVOB). As a Service Disabled Veteran he is capable of bidding on any drug testing contracts and is eligible for government set aside contracts as well. His MBA and 15 years’ experience in government contracting within the Satellite Operations industry is sure to compliment his business plans with ARCpoint Labs. David was able to work with the ARCpoint Labs National Accounts group, who have supported his plans to attempt to capture government contracts in the Department of Transportation, Department of Defense, and local government agencies. David was able to finance this opportunity through a home equity loan, personal saving and a VBS Grant that was provided to assist him in the startup costs of the franchise. VBS is very proud to be able to promote his success and continue to support him with his government contracting efforts in the future. ARCpoint Labs is a full-service national

“His new franchise will address the needs of the law enforcement community and the possible need for DNA & Forensic testing in the future” third-party provider/administrator providing Accurate, Reliable, and Confidential drug, alcohol, DNA and steroid testing, employment/background and wellness screening and corporate wellness programs. The company is nationally recognized and affiliated with the Drug and Alcohol Testing Industry Association (DATIA) and Substance Abuse Program Administrators Association (SAPAA) and has developed a comprehensive program incorporating the many aspects of federally mandated and non-mandated testing. ARCpoint Labs has been in the drug and alcohol testing business for over eighteen years and has over sixty years of combined staff experience.

market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment(VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for Veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for Veterans in franchising. For further information visit: www.veteransbusinessservices.us

For additional information about ARCpoint Labs please visit: www.veteransbusinessservices.us/ product-item/arcpoint-labs VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the Veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s

Jim Mingey

Franchising USA

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V e t erans in Franchising

VetFra n N ews

economic activity and support for local organizations.

Franchising Gives Back volunteers will donate their time and efforts in a special project to assist veterans at the Veteran’s Village in downtown Las Vegas on Saturday, February 14, 2015 from 11:30 p.m. to 4:30 p.m., to kick off the IFA’s 55th Annual Convention, February 15-18, 2015.

Veteran’s Village is a transitional and permanent housing residence for U.S. veterans, and provides an on-site crisis intervention center, medical and mental health services, job referrals and training, food bank, clothing, and other supplemental services to promote independent living. This event is being organized by the IFA Educational Foundation, VetFran Committee and other volunteer leaders. The Roark Capital Group is a founding sponsor of Franchising Gives Back. Franchising Gives Back is designed to highlight the strong commitment of service and leadership of franchising in local communities to build vibrant communities through both local

IFA volunteers participate in a Franchising Gives Back Day to help a local charity in the city where their annual convention is being held

Franchising USA

Volunteers will be transported from the hotel to Veteran’s Village where they can choose between a mix of hands-on projects that include painting, landscaping, or minor building; or an assembly project putting together toiletry kits for the residents of Veteran’s Village. To participate in the Franchising Gives Back event, volunteers will need to preregister and present a credit card number as a guarantee of attendance. No shows will be charged $100 which will be donated to the Veteran’s Village. This year’s event will launch a new multi-pronged Franchising Gives Back program organized by IFAEF that celebrates the community leadership of franchise businesses in local communities. A Franchising Gives Back website, an awards program to recognize community leadership displayed by franchise businesses nationwide, and a national registry will promote and recognize the numerous community and philanthropic programs, service activities and events of franchise businesses. For more information about the Franchising Gives Back event, please contact Gionne Jones at 202.662.0772 or email gjones@franchise.org.


You will notice some innovative changes at IFA's 2015 annual convention! We've upped the ante with new enhanced features and paramount educational and networking events. You don’t want to miss franchising’s biggest and best event of the year!

V e t erans in Franchising

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DON'T MISS THE BIGGEST FRANCHISE EVENT OF THE YEAR!

HERE’S WHY:

Unique networking opportunities will connect you with other franchise executives to expand your portfolio of contacts and cultivate partnerships that will help you and your brand get to the next level.

Registering online is now easier than ever with our newly improved and streamlined process!

Informative educational sessions focus on hot topics that impact your bottom line – everything from operations, technology, franchise relationships, sales & development and more. This is the perfect event to showcase your innovative brand in the exhibit hall!

Interactive roundtable discussions led by experienced and savvy franchise leaders will give you an array of new and exciting information that will help you grow and evolve your brand.

REGISTER NOW

convention.franchise.org THE EARLY BIRD CATCHES THE SAVINGS!

IFA Members: Register before October 24 and save $50! Contact Lynette James at 202-662-0782 or ljames@franchise.org if you are interested in exhibitingFranchising or sponsoring. USA


V e t erans in Franchising

Ca r tr idge Wor ld

Entrepreneur Magazine ranks

Cartridge World

as One of Top Franchises for Veterans program which rewards WWII veterans with a free trip to visit their memorial in Washington DC,” said DeBroux. “Many veterans mentioned the trip was the highlight of their life. It’s always a pleasure to help them enjoy this unique opportunity to connect with fellow veterans and share their stories.” Supporting veterans’ entry into the Cartridge World franchise system, the company offers a special 15 percent discount on the franchise fee when veterans join the organization. Cartridge World is actively seeking veterans and business professionals who are looking for opportunities to run their own business in the $80 billion printer cartridge industry. In 2014, more than 30 persons joined the Cartridge World business system. With more than 500 stores in the North America, Cartridge World is expanding its presence with high-performance printers, printing products, service and supplies for both business and residential customers.

Cartridge World, one of the world’s leading retailers of printing services and supplies, was recently recognized for more than helping customers save money.

“We’re honored to be included in Entrepreneur’s list this year, as Cartridge World has always offered a thank you to those who have served our country,” said William Swanson, CEO of Cartridge World North America. “Whether it’s providing a discount to veteran customers or attracting more veterans to join our franchise system, our support for those who have served continues to grow.”

In November 2014, the company was named in Entrepreneur Magazine’s list of America’s Top Franchises for Veterans. The local home and office printing experts were listed at No. 59 in the country. Franchises ranked were evaluated and listed based on their incentives for veterans. Cartridge World has been wellknown for offering numerous benefits and discounts for current and retired members of the military ranging from customers to franchisees.

John DeBroux, owner of Cartridge World in Conyers, Georgia is one of the many reasons why Cartridge World received such praise. He served as a staff sergeant in the United States Air Force from 19651969, as well as a senior master sergeant in the Georgia Air National Guard from 1975-1995. Now serving as a Cartridge World franchisee, DeBroux continues to give back to military veterans.

Cartridge World is the leading ink and toner retailer and franchisor in the $80 billion printer cartridge industry. The company sells printers, paper, printing supplies and services, and uses state-ofthe-art manufacturing processes to build high quality ink and toner cartridges. Cartridge World stores provide a tremendous cost-saving alternative to buying new printer cartridges, offering up to a 30 percent discount over full-priced cartridges. Cartridge World also offers a 100 percent satisfaction guarantee and free delivery to business customers.

“I’ve had the privilege to be a guardian on the Ninth Honor Flight out of Convers, a

For more information visit: www.cartridgeworld.com

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ex per t advice

Tom DuFore, COO, Franchise Marketing Systems

Should You Franchise Your Business in

…and How to Know if You Are Ready The New Year is upon us and 2015 is underway. Have you made your New Year’s resolutions? Have you set your business plans and strategy for 2015? If you are like many of the entrepreneurs we meet you are probably hopeful,

ambitious, and ready for a fantastic 2015!

Franchising USA

And with your revitalized ambition at the beginning of the year the next question enters your mind; “Is this the year I should franchise my business?” The focus for the next several paragraphs will be to help you begin exploring if you should franchise your business and how to know if you are ready. Let’s begin with if 2015 is the right time to franchise your business. Below is a list of some of the trigger points which would lead you to consider franchising. If one or multiple of these apply to you then you might want to franchise your business this year.

• “Customers, friends, and/or family keep asking me about franchising my business” – This is one of the most obvious and common reasons entrepreneurs call me for a free franchise consultation. Are you in a similar situation? Do you have customers walking into your location asking about buying a franchise? Are you providing a service and after completing the job your customer asks if you have a franchise near where their brother lives? This is one of the strongest indicators that you are on to


“As the old adage goes, if your customers are asking for it you should probably sell it to them.”

something worth franchising. As the old adage goes, if your customers are asking for it you should probably sell it to them. • “My business has plateaued and I still want to grow” – If you are like many entrepreneurs your business will eventually hit a revenue plateau and your future growth will be relatively limited without opening additional units or territories. This occurs most often in businesses which have been in operation for five or more years or with hungry business owners interested in continuing to grow. • “The cost of opening a second, third, or fourth unit is too much” – If you feel constrained by your ability to financially open up multiple units it might be a good idea to consider franchising. Often times to franchise your business it costs the same as, or less than, opening an additional company owned unit. • “I have a new or unique business, product, or service” – If you have a new or unique business model with no major competition now might be the time to consider franchising. For entrepreneurs in this type of situation SPEED to market becomes the most pressing issue. If you have the opportunity to become the first major player nationally in your market space it is a distinct and extremely valuable competitive advantage. • “I have tried opening additional company owned units and it didn’t work” – We have met with many business owners who over the years have opened additional company owned locations or territories only to end up

closing most of them at some point. In speaking with these owners there are many common threads to why this did not work. The most common reason is the lack of effective management at the new unit. With company owned locations a manager is typically put in place. This could be a crap shoot betting on the future manager to run the location. Franchising provides you with an ability to put a vested owner/operator into a new location and help reduce the risk of poor management. • “A franchisee could earn a good living and a return on their investment” – If you can train a franchisee how to run your business and they could make a profit and return on their investment, then franchising might be worth considering. We use a typical formula for an owner operator of a franchise to be able to earn a manager’s salary (basically what you would pay someone to run your business if you did not manage it full time) plus have the ability to make a 20 percent return on their cash investment after two years in operation.

When is the time right for you to consider franchising? Well, there is no secret to identifying this. There are a number of factors to consider the timing of your expansion: the life cycle of your existing business, your family situation, your health, your goals for the future, your exit plan, your retirement strategy, your level of ambition to try something new. There is no right time to franchise as long as you believe and know it is the right time for you. Ultimately in franchising if you believe

Tom DuFore

you can teach someone how to run your business and they can make a profit running it then you should consider franchising as an expansion option. Franchising is not an end all game. Most often we will see business owners couple other expansion strategies with franchising. If you are asking questions like, “What’s next? How can I continue to grow? How can I keep earning money without relying exclusively on how hard I work each day?” Then this is an expansion strategy worth considering. If franchising is a consideration our organization, Franchise Marketing Systems, offers a variety of free resources including a free eBook, franchise quiz, and a free no obligation consultation. Tom DuFore is the Chief Operating Officer for Franchise Marketing Systems. In his critical role he is responsible for the oversight of Franchise Marketing Systems Operations and consulting with and advising FMS Clients. Tom has personally worked with and advised hundreds of businesses ranging from the largest companies in the world to start-ups. For more information visit: www.franchisemarketingsystems.com

Franchising USA

ex per t advice

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hav e your say

Tok yo Joe’s

How to Build a Cool Culture Based on Recognition and Rewards

Having Words With Larry Leith, Founder and Chief Innovation Officer of Tokyo Joe’s People always say that cash is king, but the longer I’ve run the Tokyo Joe’s restaurant group, the more I realize there is much more to our work than a paycheck.

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Recognizing the needs and desires of employees is a powerful recipe for success. In fact, research done by Forbes found that companies that scored in the top 20 percent for building a “recognition-rich culture” actually had 31 percent lower voluntary turnover rates. A well-designed recognition program can achieve this result. Founded in 1996, with a focus on creating

a menu that the average American Joe could access, our brand has grown from its original location in suburban Denver to 30 system-wide units today. Although our company has grown and changed over the years there has always been one constant; we care about our people and our culture. For instance, for the past nine years, we have sent our restaurant managers and kitchen managers to our home in Maui for


“Does your company have the right award mix in place?” a week to reward them for their hard work. We pay for the flight and let our Managers have use of our vacation home to spend the week enjoying the beauty of Hawaii. We’ve coined it ‘House of Joe’s’. Some employees have been coming since the beginning and the memories that have been built sustain them throughout the year. We have had managers opt to take their parents on the trip, who have never in their own lives had such an opportunity or adventure; we’ve had employees honeymoon there; there have been engagements, folks that have never before seen the ocean, family get togethers and employees who have connected with one another by piggy backing on each other’s weeks. But I think most the most important thing to note is that we’ve had hard-working people that got to feel very appreciated, unwind, ride my bike to the beach and dip their toes in the sand – all knowing that they get to come back and do it again next year too. Marci, my wife, started a program for employees who are parents called “Marci’s Back to School Shopping Spree” where she hosts two events a year for employees with kids ages 5-18. The kids are taken shopping to get shoes, outfits and a “goodie” bag of school supplies. We also sponsor Tokyo Joe’s Mountain Biking Team and have been supporting and sponsoring the team for the past 12 years. I’m a former athlete and lifetime health enthusiast, proud to support anaward winning team of athletes that match the mission of Tokyo Joe’s; “eat good, feel good.” All of these rewards and recognition

programs we provide engender a culture of unification and shows our employees that we truly care about them. The Incentive Research Foundation (yes, there is such a thing) challenged the widely held belief that cash incentive awards are always the most effective employee motivator in a research review conducted with the Incentive Federation. Examining a wide variety of studies in various industries, the audit found that non-cash awards can actually capture an employee’s imagination better than cash – thereby motivating them to increase performance.

For business executives focused on the bottom line this study proves extremely valuable and forces the question, “Does your company have the right award mix in place?” Companies looking for non-cash award ideas can try some of these. 1. Home is where the heart is – Many employees spend more time with their co-workers than their spouse and children. Time off work or flexible hours can be a reward that is greatly appreciated and shows employees that the company respects and encourages family values.

Franchising USA

hav e your say

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hav e your say

Tok yo Joe’s

2. Peer to peer recognition – Leaders in organizations tend to think that an employee values their recognition the most, but surveys show that employees feel better when they are recognized by their peers because they know what you’re doing on a day to day basis. Top-down recognition is often viewed as political and it rarely reaches the “quiet but critical high-performers” in the company. 3. Surprise! – Not everyone loves a surprise, but a boring weekday afternoon can turn into a fun adventure for the entire team with a surprise outing to get everyone out of the office and re-energized. 4. Wall of Fame – Set aside a public space inside your office and place photos of employees who’ve accomplished something truly special, along with the

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details of what they did to earn their place on the wall. 5. Valet it – Give the best parking spot for employees who’ve done something truly worthwhile. If public transportation is the way to go, buy them a cab or limo ride home. Finding your own mix of rewards and recognition will help define your culture and make the workplace a more inviting and invigorating destination for employees. Give it a try for your company in 2015.

believes healthy eating can be a great experience every day. Founded in 1996, with a focus on creating a menu that the average American Joe could access, the brand has grown from its original location in suburban Denver to 30 system-wide units today. Uniquely positioned, this brand embodies a new way to look at healthy and fresh options. To learn more about Tokyo Joe’s, visit http://tokyojoes.com/joes-story/.

ABOUT THE AUTHOR Larry Leith is the founder and Chief Innovation Officer of Tokyo Joe’s, a fresh, healthy, Asian-inspired fast casual restaurant brand based in Denver that

“A boring weekday afternoon can turn into a fun adventure for the entire team with a surprise outing.”


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Franchising USA


ex per t advice

Patti Laine, President, tag franchise

One Brand, One Voice And when they respond, the franchise grows.

Patti Laine

Franchise marketing is a complex discipline with many moving parts. The local franchisees have to feel both accountable for their own growth while also having a team approach and respect for the corporate direction. The national brand has to act as a leader while understanding the regional and local differences that each location demands. Not always an easy balance to strike, which is why many franchises face challenges when expanding into a broader market. The basis of marketing success stems from understanding who the brand is from the start and ensuring that a single brand “voice” is carried through all channels of the organization. The reward is that relevant customers and potential partners respond to consistent franchise brands.

Franchising USA

How do you determine that “voice”? It starts from examining your current and aspirational customer base. How do these customers perceive the brand? What do they like/dislike about the brand? This discovery process can unveil an unarticulated need of the consumer and create an opportunity for the franchise to fill that void. The next step is to apply this voice against all the main principles of the organization. tag franchise has been driving the success of Canadian franchise brands such as Mary Brown’s Chicken & Taters, Extreme Pita and Mr. Sub for years. The agency’s elevate marketing model has paved a path for their clients to ensure each touchpoint of their organization is strategically influenced. The six categories of the model include:

from the consistency of the delivery, whether the franchise is located in Toronto, New York or Atlanta, the product and service must be the same every time, for every customer. Furthermore, across the franchise, the messaging, the product and the delivery must consistently support the brand. Overtime, this will create loyalty and equity in the franchise.

3. Elevate the distinctiveness of the brand and the disruption in the category

1. Elevate unity of franchisor and franchisee

This is the cornerstone of franchise success – having the franchisor and franchisee unified under a corporate vision. Franchisors must have the vision, but where so many falter, is in communicating that vision to franchisees. A U.S. study found that 45 percent of businesses do not have a formalized strategic plan and 25 percent have not detailed their core values.

2. Elevate equity and perception of the franchise

The perception of the franchise comes

Define how your brand is different. Is it emotional? Or is it functional? Even in a saturated marketplace, franchises need to be distinct. tag franchise recently worked with Extreme Pita on their new generation branding and found that what really set them apart from their competition was not only the healthier ingredients available, but the premium ingredients in their pita, salad and flatbread offerings. The team focused on positioning, presenting and promoting their ‘Limited Time Only’ specialty items with mouth-watering ingredients such as: sirloin steak, asparagus, and kale. The campaign was so successful that it played a major role in the communications strategy and was rolled out again this year, with equally impressive results.

4. Elevate the customers’ connection to the franchise

How to create a connection with customers to motivate repeat business? While evaluating Master Mechanic’s business, tag franchise discovered that


“Even in a saturated marketplace, franchises need to be distinct.” while they have an increasingly steady flow of first time customers, there was huge growth potential in creating repeat visits of existing customers. tag developed programs that would encourage customers to come back for a second visit, whether for a service or a winter/summer tire change, and engage with the franchisee. The incentive being that when a customer came for their first visit, they would receive a discount on the second. Additionally, when customers came back for that second visit, they would ‘talk to the mechanic’; subsequently promoting a connection with the franchisee and driving business back to the store.

5. Elevate customer loyalty and affinity

Loyal customers spend more money. Creating a loyal customer base will, over time, create powerful equity in your business, and make it more profitable. International management consulting firm, Bain and Company, found that customers who are loyal to a brand, i.e. engage with them on social media, spend 20 percent to 40 percent more than those who don’t, plus they demonstrate a deeper emotional connection to those companies.

6. Elevate customer and franchisee ambassadorship

Word of mouth is arguably one of the most powerful tools available to any business, and that has only been heightened with modern technology. Good news travels fast. Bad news travels faster. Brands have experienced PR disasters as negative customer feedback goes viral. A singular brand voice, consistent quality, value and delivery is key to converting loyal customers to brand ambassadors for a franchise.

Franchise marketing requires a special skill set and aptitude in order to ensure all stakeholders have a voice, are heard, and are actively involved in the adoption of the brand direction. By following a multi-level strategic messaging approach, stemming from insights gleaned from internal and external influencers – a franchise can increase awareness, grow loyalty and profitability, and solidify their brand identity from the ground up.

Patti Laine is the President of tag franchise, formerly, the adlib group, and brings her wealth of experience and expertise on both large and small businesses to the table. She is dedicated to leading franchises to establish their voice in the marketplace and expand successful throughout North America. For more information, visit www.tagfranchise.ca

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Focus

T he I nter face Fina ncial G roup

Change That Works We live in a world of fastchanging technology. As soon as we master one process, it is replaced by the next version. Can we keep up with innovation and change? Is it change just for the sake of change? There are, as always, good changes and not so good changes in the things that impact our daily lives. Change just for the sake

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of change has to rank in the not-so-good category. Change that enhances and stimulates us, on the other hand, is something to embrace. The advent of technology has certainly accelerated the velocity of change. One area where we see great transformations, that have an impact on most people, is the area of how we do our banking. Once we used to line up in the bank to await our turn at the teller’s window, and now that has transformed into the faceless Automated Teller Machine - push in your card and out comes your cash - or so we hope.

When we thought that was as ‘good as it gets’, the banking world tells us we no longer need to visit the bank or even an ATM to make a deposit - we can do this with an app on our ‘smart phone’. Hopefully someone is working on how we get cash delivered through our phone! Or, as many people anticipate, maybe cash will become obsolete in the near future. The Interface Financial Group has been in operation for over 42 years. When we started life we were literally keeping records in a handwritten ledger. That progressed to a bookkeeping machine, and then to a computer. One thing that didn’t change along the way was the ‘people’


“What has changed over the past four decades is the delivery method and something much appreciated by our clients - the speed at which we conduct business.” side of our business. It started as a people interacting with people business, and 42 years later that’s still unchanged. What has changed over the past four decades is the delivery method and something much appreciated by our clients - the speed at which we conduct business. Speed without the loss of the personal touch. We are invoice discounters, also sometimes referred to as ‘spot factors’. We accelerate the cash flow for our clients by purchasing some of their current quality invoices at a small discount. This takes the waiting out of the accounts receivable equation, and helps our clients accurately predict when they will get paid, either by their customer or by Interface. This is a simple and certainly an un-glamorous business. It is, however, a much indemand service for companies that are experiencing a significant growth period. One of the things that helps Interface to stand out from the crowd is the unique distribution method that we have developed over our 40 plus years of operations. Believing that personal service is an absolutely key element in working with our clients - the question arises, how can you maintain a personal touch when clients are spread around in virtually every State and Province? The answer evolved over time as the operation grew. Staying in touch meant having ‘feet on the ground’ all across the continent. Interface found that franchising was the opportune method to grow into a large organization without sacrificing the all-important personal contact element. We took our ‘simple’ business and transformed it into a ‘simple’ franchise opportunity. Some many years later we have grown into a large multi-national franchise with ongoing growth plans. As a franchise organization it becomes

our responsibility to ensure that our franchisees operate in a secure environment, and that they obtain the maximum possible return on their working capital. These two elements have been our ‘change’ focus over the years as we seek to grow an organization, but to do so in such a way that growth always represents an enhancement for our franchisees.

but has not adversely affected their annual return. Change for the sake of change, as we have stated, is not always a good thing. However innovative and constructive change that enhances, in our case the franchise, has surely turned out to be change for the better. For more information visit: www.interfacefinancial.com

When you start with a simple business model, change and improvement become a definite challenge - nonetheless one that always has to be addressed. Interface has recently gone through such a process for the benefit of our franchisees. We started by asking three simple questions of our franchisees. 1) What do you like about your franchise; 2) What could we do to improve it; and 3) What do you dislike about your franchise. The answers did not really surprise us, but rather challenged us to come up with some innovative changes that would offer significant benefit to our franchisees. What our franchisees liked about the franchise was the great return they earn on their working capital. What they didn’t like was the paperwork – we came up with a great solution and relieved our franchisees of all day-to-day transactional paperwork, choosing to do it ourselves on behalf of our franchisees. Their request for an improvement was as expected - they wanted to maintain their return but at the same time reduce their capital exposure. Finding a solution for this latter point needed some further innovation and change. We were able to introduce a leverage program for franchisees whereby they could benefit from an external investor’s involvement. This has greatly reduced their capital requirement

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George Knauf, Senior Franchise Business Advisor, FranChoice

Dip Your Toes Into The Franchise Shark Tank We have all seen it; Mr. Wonderful, Lori, Robert, Barbara, Damon and the ever surprising Mark Cuban circling potential businesses to see if they are investment worthy. The popular show “The Shark Tank” gives those of us in the business owner community, and those who wish to be, a way to watch how Franchising USA

proven investors evaluate businesses from pure start-ups to more mature concepts. How can you use those lenses to evaluate opportunities for your investment in a franchise brand? There are some pretty identifiable criteria that the Shark investors use to sort the field that we can learn from: • Current Stage of Growth • Capability of Founder • The Market for the Product or Service • Financial Performance

• What Can I Add to the Equation • Do I Trust You? One of the first questions the Sharks ask a business owner in the tank is about their current stage of growth. They are trying to gauge if they are looking at a product with no real company behind it; a start up, young venture with traction; or a more mature concept with real momentum. The goal is to find those companies early enough to maximize their investment, yet far enough along to make it safe. If you watch the show you have probably seen times where the sharks are okay with the concept, but make a point of investing in a great team. No matter how new or mature a concept is, without the right team your investment will always


“The goal is to find those companies early enough to maximize their investment, yet far enough along to make it safe.” be at higher risk. The capabilities of the people involved can sometimes make an investment safer and more rewarding. In the franchise world we guide our candidates the same way. Find the right team and a concept that will allow you to maximize your investment. A new brand that is still learning may increase risk, but drop a great team into a new brand and you may find a fun place to empire build. Mature companies will give a perception of comfort, but the best of their opportunity may have already been tapped. A big brand is not a sure path to individual success while newer brands can offer risk mitigation and high growth to a franchise candidate that can be comfortable in that scenario. The next thing the Sharks seem to look for is an understanding of where the product or service fits into the market. Is it a short fad or does it have the potential to be a long term plan? They know that fads not only limit overall earning potential, but increase risk as there is no way to know when demand will evaporate in a fad. In some cases on the show they have identified products where demand may have already run its course and identified a fad via sales trends where there was a precipitous decline. When we work with our candidates we ask many of the same questions about the companies we source for them. We want to see that it is an exciting concept because we can identify a ten or more year demand for the product or service, a common term of a franchise agreement. When the Sharks feel comfortable with the stage of growth, the market and the team they often circle right back to the numbers if they are considering making an offer. This is where they start asking probing questions of the people that generate the activity. They don’t make assumptions,

they ask questions and assemble their own mini pro forma. As you are looking at franchises it is critical to gather good data so that you can make solid business decisions. Trying to gauge financial performance of the parent company or potential earnings of a franchisee from a Franchise Disclosure Document alone will leave you with a partial picture at best and this makes it hard to make a quality business decision. In evaluating numbers go to the source, ask the franchisors about their audited financials and talk to their franchisees about their numbers. While both can be sensitive conversations, it can be done in such a way that you can get the full picture you need. Also before they make an offer the Sharks do a little personal gut check about how the business fits them and their expertise. One of the most common reasons you hear a Shark bowing out is that the business is not one that they can add value to. Their skills, strengths, contacts and resources could not help the concept succeed. This is far different than the much less common reason of just not liking the product. The Sharks are making business decisions and they know that there are more customers than just them. The idea that they don’t like the product is rarely a final decision-maker over whether it is a smart business to invest in. Just before the Sharks invest you will often see them give the business owners one last long look where they size them up and make their last call: Do I trust you with my money? They can’t ask that question first, it has to be last. They need to have gone through the, albeit abbreviated, investigation. They have to ask questions, build a relationship and check off other criteria first. On a few occasions you may have seen Sharks decide they could not trust someone and

George Knauf

bow out, but it tends to happen after all

stages of the investigation and not right up front.

As you look at franchises this is your

Discovery Day Visit; your Franchise Shark Tank Day. After checking off all the

boxes on your investigation and going to

visit the franchisor, as one last gut check

before moving forward just give them one

last serious looking over and ask yourself: Is this the company that you can trust to

best put your money, skills, strengths and

abilities to work in the pursuit of success? Do you trust them?

Above all keep in mind, sharks don’t often swim alone. Think like a Franchise Shark and soon you may be safely swimming among them!

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

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Andy Roe, General Manager, SurePayroll Inc.

Become the CEO of Your Life

If you’re a franchise owner with a family, your typical day probably goes something like this: You wake up in the five or six o’clock hour.

Work is crazy. Work is always crazy. So

exchange a brief series of conversations with your spouse.

to answer. So many emails. Meanwhile,

A lot of this is logistical because you will do this all over again tomorrow. You’re too exhausted to worry about it now. You fall asleep.

Depending on their age, you either get

Then you get home around six-thirty. Or

them and change them. Then you get

your kids to practice, or to their lessons,

a breakfast bar or a handful of Cheerios.

you eat, you do homework, you put them

many fires to put out, so many emails

the school is calling, your son is sick (or

worse, he’s in the principal’s office). Can

someone pick him up? You’re calling your spouse. You’re dashing out of the office, but you have to go back.

your kids ready for school or you feed

maybe you don’t go home yet. You take

yourself ready and head out the door with

or to their friends’ houses. At some point

You’ll eat later.

to bed, you brush your teeth, and you

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Running a franchise is challenging. But most people have a lot more than a business to run. Too often today, though, we aren’t the CEO of our lives. We get by. We do what has to be done, but we don’t maintain an overarching vision of how we want our lives to go and take steps to execute that vision. We let ourselves get run over.


“When you plan a year ahead, you’re giving the people who support you full notice.” her whether we go out or not, so that she’s not missing a paycheck just because one of us came down with a cold. The benefit for me is that the babysitter tends to be pretty loyal. And anyone with young kids knows how easy it is to lose a babysitter, and what a headache it is to find a new one in a hurry.

Plan Ahead I also plan family vacations a year in advance. I know where I’m going to be on July 4th. I know I’ve got a family reunion next summer, and I’m not going to miss it because something comes up at work. Because something will come up at work. When you plan a year ahead, you’re giving the people who support you full notice, with enough time to train them if necessary, so that the business doesn’t miss a beat when you’re gone.

If you’re to become the CEO of your life as well as run your business, you have to be proactive and take charge. Here’s how I do it.

Set Your Priorities You can’t control your life without deciding what’s most important. For me, my relationship with my wife comes first at home. I also have three school aged kids, but my belief is your children learn about relationships from their parents. So we have date night. Every Friday night. And I don’t start calling babysitters on Wednesday. I have one on retainer. I pay

Conflicts have come up in the past and they will come up again. That’s why I’ve adopted this philosophy. In my industry, December through January is the most important time of year. This is when businesses are signing up for payroll services. Because of that, my family does what we call “Christmas in July.” We know I’m not going to have any extended time off during the typical holiday season. Rather than try to squeeze it in, and spend the vacation on the phone with work, disappointing my family, I plan around it.

Cut Back When you run a franchise, you have to be just as aware of what you can’t do (or can’t do well) as you are of what you can do. Sometimes you can’t take on every project or provide every service. Often what makes a franchise successful is that it finds

Andy Roe

out what it does better than anyone else and sells that. The same is true at home. My kids aren’t in every single sports league. We go to church on Sunday and if the games are all on Sundays, it’s just not going to work for us. Every family has different values and things that are important to them. If you don’t make sure those things are front and center, they get lost. So stop trying to do everything. You’re running a business. You’re taking care of a family. I’m sure you have enough on your plate. You don’t need to enroll your kids in a traveling team or get them private swimming lessons, or whatever it is they want or their friends want. Remember, you’re the CEO. You’re the mom, you’re the dad. You’re driving the car. The kids are in the backseat watching everything you do. It’s not your job to please everyone. It’s your job to make tough choices for the greater good, of your business and your life. Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company. SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. You can follow Andy on Twitter @AndrewSRoe.

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