Franchising usa T he ma g a z ine for franchisees
VOL 04, ISSUE 9, july 2016
$5.95 www.franchisingusamagazine.com
Resale Retail Company
wants to introduce an online store
special
mobile franchising feature
5 ways to increase
franchise sales the business of
smart branding LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
Ready for the Big Leagues? You have what it takes to be successful, and Big O Tires has the industry-leading knowledge and resources to help get you there. Enjoy the freedom of operating your business independently while leveraging the support, resources and established brand recognition of a multi-million dollar network. • • • •
More than 50 years of experience in the tire & automotive service industries Proven business expertise and strategy designed to exceed customer needs Premium buying power of hundreds of locations Nationally-recognized franchise networking
This advertisement does not constitute an offer of a franchise. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document. Franchises are not available in all states.
www.bigofranchise.com 877-890-5874
Franchising usa T he ma g a z ine for franchisees
FRANCHISING USA VOLUME 4, ISSUE 9, 2016 president: Colin Bradbury. colin@cgbpublishing.com
Publisher: Vikki Bradbury. vikki@cgbpublishing.com
National Accounts Manager: Tuesday Royko. tuesdayr@cgbpublishing.com
Editorial Department: editor@cgbpublishing.com
Assistant editor: Diana Cikes editor@cgbpublishing.com
Editorial team: Diana Cikes Gina Gill Rob Swystun
Production: usaproduction@cgbpublishing.com
DESIGN: Jejak Graphics. jejak@bigpond.com
COVER IMAGE: nty ‘new to you’
CGB PUBLISHING Canadian Office: 676 Wain Road, Sidney B.C Canada V8L 5M5 U.S. Office: 800 5th Ave, #101 Seattle, WA 98104-3102 Sales: 847 607 8407 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
“Reach high, for stars lie hidden in you. Dream deep, for every dream precedes the goal” - Rabindranath Tagore
Franchising USA recently attended the IFE Expo in New York at the Javits center and welcomed a lot of new readers to the magazine. With an expected attendance of over 20,000 it was great to chat with Franchisors and Experts in the world of Franchising and hear from all the potential Franchisees about their goals and aspirations. We also had time to sit down and interview some well known Franchisors, and some of these interviews can be found in this issue. On the Cover this month is NTY, a ‘New to You’ Resale Retail Company that Wants to Use Technology to Rule Industry. Turn to page 10 to learn how this franchise aspires to rule the online landscape as it prepares to launch an online store. Our main feature supplement this issue is on Mobile Franchising, with a feature article that examines opportunities in an industry that has evolved out of a changing and fast paced American lifestyle. Here you can also learn how milliCare franchisee Chad Stout went from Employee to Owner by Rising Through the Ranks of this commercial
carpet and textile cleaning franchise. This month our Veterans in Franchising Supplement features 7-Eleven on the Cover, as the world’s first convenience store celebrates a big win for one U.S. military veteran who recently won a 7-Eleven franchise. Learn more about the OPERATION: Take Command competition and find out why 7-Eleven encourages and supports veterans to thrive in this franchise. As always we’ve also included plenty of informative Profiles, Expert Advice and News from the industry. Learn how Jiffy Lube franchise owner Steve Sanner built a successful franchise, and hear from Capriotti’s Ashley Morris on the success and growth of this food franchise. Get advice from industry Experts like John Hewitt on 5 Ways to Increase Franchise Sales and Brian Scudamore, who offers insight into The Business of Smart Branding. We hope you enjoy reading this issue of Franchising USA. Stay inspired and be sure to send us your comments. And if you haven’t yet ordered your digital subscription, visit our website to subscribe or download the app to ensure you’re kept up-to-date every month. Happy reading! Vikki Bradbury Publisher
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Franchising USA
a nchsing usa f ra nchising usa
Page 3
Contents
july 2016
On the Cover
10 Cover Story: NTY Resale Retail Company Wants to Open Online Store
30
14
70 5 Ways to Increase Franchise Sales
In Every Issue 06 Franchising News Announcements from the Industry
26 Special Mobile Franchising Feature
34
12 The Business of Smart Branding
Question Time 20 Ashley Morris, Capriotti’s
47 Veterans Supplement News and Information for Veterans in Franchising 72 A-Z Franchise and Services Directoy
Focus 66 Interface Financial Group
Profile 32
milliCare
44
26 Feature Article Mobile Franchising Feature Article
16
Expert Advice 12 The Business of Smart Branding Brian Scudamore, Founder and CEO, O2E Brands 14 Overtime Rule Changes: How to Prepare Your Franchise Store John Waldmann, Co-Founder and CEO, Homebase 22 How to Fine Tune Your Brand’s Voice Kyle Zagrodsky, President, OsteoStrong
30 Three Ways to Stand Out Among Competition Chad Altier, CEO and Co-Founder, iDropped 34 Solving the Obamacare “Problem” Paul Johnson, Co-founder, Redirect Health
24
24 2 Key Metrics to Monitor with Your Customers – Everything Else Is a Distraction Pamela Herrmann & Patty Dominguez, Co-Founders, CREATE Buzz
38 Focus on the Family and the Business Henry Hutcheson, President, Family Business USA 40 12 Steps for Job Addicts George Knauf, Senior Franchise Business Advisor, FranChoice 44 Hook the Big One, Angler Matthew Jonas, President, Top Fire Media
70 5 Ways to Increase Franchise Sales John T. Hewitt, Founder & CEO, Liberty Tax Service & SiempreTax+
Franchisee in Action 16 Foot Solutions
HAVE YOUR SAY 36 Steve Sanner, Jiffy Lube
26
68 Implementing and Enforcing Covenants Against Competition in The Franchise Context: Part 1 Erik W. Weibust, John R. Skelton, and Anne V. Dunne
f ra nchising usa
what’s new!
Freddy’s Frozen Custard & Steakburgers Opens 200th Location
Paris Baguette Targets US for Growth Paris Baguette, a premier bakery cafe franchise with more than 3,700 worldwide locations, is targeting the United States for growth after incredible international success in South Korea, China, Singapore, Vietnam and France. The French-inspired bakery and café concept, whose variety of proprietary products offer guests a unique and sophisticated taste, is projected to add an additional 350 locations to its current 46 U.S. stores by 2020. Paris Baguette was born out of a concept which first began in Korea in 1945. With over 70 years of experience in the baking industry internationally, Paris Baguette first debuted in the United States in 2005 and began franchising in August 2015. Paris Baguette recently announced aggressive expansion plans in the United States in 18 target markets with an immediate development focus on California, New York, New Jersey and Pennsylvania. Led under the direction of chief development officer Larry Sidoti, who helped grow several iconic brands over the past two decades, Paris Baguette is introducing its internationally recognized brand to the mainstream American market through strategic franchise partnerships with dedicated, passionate individuals. There are currently 46 Paris Baguette bakery cafes in the US averaging over $2,000,000 in annual sales per unit. The company has four regional support centers with production, training and operational support in each of its key markets. parisbaguettefamily.com/home/franchise-information/
Franchising USA
Freddy’s Frozen Custard & Steakburgers opened its 200th location on Thursday, June 9th, 2016. The fast-casual restaurant franchise, which now operates in 30 states, has experienced an average growth in system-wide sales of 40 percent over the last four years. The 200th location comes nearly fourteen years after the first Freddy’s restaurant opened in August 2002 and just two and a half years after the company proudly crossed the 100-restaurant milestone. The momentum and frequency of new Freddy’s openings continues to increase as the concept becomes more widely-known and in demand by consumers as well as real estate developers. Already in 2016, Freddy’s has opened 23 restaurants and is on track to open another 32 by year’s end. Officials for Freddy’s say the company will open more than 70 locations in 2017 and development rights are currently in place with franchisees that make it realistic to have more than 600 locations open in the coming years. www.freddysusa.com
Chronic Tacos Expands ‘State of the Better Taco’ Movement Chronic Tacos, the California-inspired Mexican grill continues to expand the ‘State of the Better Taco’ movement.
committed to serving only the highest quality with fresh ingredients and allnatural meats.
Founded in 2002, California-based company has more than 30 locations operating across North America and is
The legacy for fresh, customizable, Mexican cuisine has ignited demand across North America. Guests will soon be
able to access the ever-growing franchise in Alabama, Utah, North Carolina, Washington, Idaho and Colorado. The roster continues to grow with additional locations in Las Vegas, Arizona, and California. The brand also participates in an annual promotion driving national awareness. Now in its sixth year, the Gringo Bandito’s Chronic Tacos Eating Contest will be held in the Las Vegas Palms Hotel on July 29. The renowned event hosts worldwide competitors with the return of Takeru Kobayashi to defend his unrivaled title. Chronic Tacos offers traditional Mexican items such as tortas, taquitos, flautas, tacos, burritos, tostada bowls and salads, including a breakfast menu all day. Each restaurant incorporates original designs inspired by traditional “Day of The Dead” art, creating a unique experience at each location. www.eatchronictacos.com
Pizza 9 Expands into Oklahoma
Pizza 9, a local franchise in New Mexico, is expanding into the Sooner State of Oklahoma. Krishna Kandath, a current Pizza 9 franchisee, has signed up as a regional developer for the area and plans to open 10 Pizza 9 locations over the next few years. The first location will open in approximately 60-90 days in Oklahoma City. The original Pizza 9 opened in 2008 in Albuquerque and was recently named one of the Top 200 Franchises in the country by Franchise Business Review. The franchise takes great pride in providing excellent delivery service and making fresh dough daily. Pizza 9 is locally owned and operated and employs more than 600 people. Pizza 9 has plans to continue its expansion in the Southwest and is always searching for the right candidates to join the Pizza 9 family. According to CEO Hass Aslami, “Pizza 9 looks for candidates that are prepared to own and operate their own Pizza 9. We are proud to be locally owned and operated. It is important to be part of the community.” With 20 locations already open in New Mexico and Texas, Pizza 9 is excited to expand into Oklahoma. www.pizzanine.com
Franchising USA
f ra nchising usa
Page 7
f ra nchising usa
what’s new!
Pieology Pizzeria Announces the Opening of its First Maryland Location
Pieology Pizzeria is proud to announce the opening of its first Maryland location in the city of Gaithersburg. A proven favorite in the custom fast casual segment amongst pizza fans, Pieology Gaithersburg offers locals the opportunity to enjoy personalized pizzas and made-to-order custom salads, using an unlimited selection of over 40 toppings. This is the first location operated by franchise partner, MMM Pizza 1. “We’re thrilled to open the company’s first Maryland location and we’re excited to bring our signature crusts and sauces to the Gaithersburg community,” said MMM Pizza 1 CFO, Manny Bramao. “We chose Pieology because of the company’s dedication to positive guest experiences, along with their strategic, sustainable growth model. We wanted to work with a brand that has a proven track record for franchise success and we’re confident we’ve made the right choice.” Pieology Gaithersburg features an industrial-chic and friendly environment
where inspirational quotes decorate the walls, menus and employee uniforms. The Pieology experience starts with fresh house-made dough pressed into 11.5-inch thin pizza crusts. Guests then select from eight signature sauces and more than 40
fresh ingredients. The pizzas are then stone oven fired in less than three minutes and finished with an optional after-bake “Flavor Blast,” including fiery buffalo, pesto and BBQ. www.pieology.com
Franchising USA Attends IFE Expo in New York Franchising USA recently attended the IFE Expo in New York at the Javits Centre. Lots of great franchise systems were on show such as child-friendly spas, food, mobile, retail, etc. The list was endless and with the expected visitors of 20,000 I am sure everyone found a system to suit their individual needs. Let’s not also forget the many services to the industry be it finance, SEO, architecture, consultants and so much more to help your on you path to franchising.
Franchising USA
Franchising USA would like to firstly welcome all our new readers who signed up and thank you for your support. We would also like to say a big thank you to all our advertisers and writers who stopped by to say hello. Franchising USA is an innovation in the industry that will continue to keep you informed and offer great advice and professional guidance on your journey to success. We looking forward to speaking with you soon. www.franchisingusamagazine.com
Beef Jerky Outlet Celebrates National Jerky Day $20,000 Raised to Benefit Wounded Warrior Project® in First Partnership Event of 2016
Management & Ownership Changes at Global Pet Foods At the recent 40th Anniversary celebration of the founding of Global Pet Foods, the Senior Executive Team of James (Jim) Walker, Paul Thomson and Dino Fragaglia (WTF Holdings Inc.) announced the completion of their purchase of a majority shareholding in Global’s parent company Franchise Bancorp Inc. (FBI), a publicly traded corporation which owns the controlling interest in Global Pet Food Stores Inc. (170 stores) and Living Lighting Inc. (22 stores). The day-to-day franchise operations along with the functional roles of the Senior Executive Team will remain similar, but with Fragaglia replacing Walker as President of Global Pet Food Stores Inc.; Thomson assuming the role of Chief Executive Officer and Walker moving to Chairman of the Board. Fragaglia will focus on operations, Thomson on finance and management and Walker on business development.
Beef Jerky Outlet locations across the country celebrated National Jerky Day by raising $20,000 for their charity partner, Wounded Warrior Project® (WWP). The National Jerky Day celebration was the first event for this new partnership, with many more events planned for the remainder 2016. This year, National Jerky Day fell on Sunday, June 12 and Beef Jerky Outlet decided to celebrate all weekend long. Five percent of the purchase price on all Beef Jerky Outlet in-store transactions from Friday, June 10 through Sunday, June 12 were donated to WWP to support our veterans. “We are thrilled to be partnering with Wounded Warrior Project,” says Paul Lyons, President of Beef Jerky Outlet. “Beef Jerky Outlet is a big supporter of our military, and this is just one more thing we can do to give back to our veterans and show our appreciation.” In addition to raising money for WWP, customers were treated to celebratory discounts at all locations and a grand prize drawing. One lucky customer at each Beef Jerky Outlet location won free jerky for a year, courtesy of the Beef Jerky Outlet.
WTF intends to make a bid for the remainder of the FBI shares.
The Beef Jerky Outlet is looking forward to celebrating this fantastic holiday again for years to come.
www.globalpetfoods.com
www.beefjerkyoutlet.com
Franchising USA
f ra nchising usa
Page 9
cov er sto ry
N T Y ‘N ew To You’
Resale Retail Company Wants to
Use Technology to Rule Industry “We’re looking for people that want to be their own boss, but who have experience in one facet or another. We want them to bring their own skill set to the company.” - Chad Olson. operating officer Chad Olson said during a recent interview from the company’s headquarters in Minneapolis.
Although it’s in the business of selling gently used products, one Minneapolis based franchise is hoping to bring something new to the resale retail industry in the form of technology. NTY, which stands for ‘New To You’, is a company that owns the franchising rights to five brands in the resale retail industry: • Clothes Mentor, which buys and sells
Franchising USA
used women’s fashion; • Children’s Orchard, which buys and sells children’s items; • Device Pit Stop, for purchasing and reselling electronics; • New Uses, which specializes in buying and reselling items for the home; and • NTY Clothing Exchange, the company’s teen and young adult resale retail brand. With its largest brand, Clothes Mentor, the company wants to introduce an online store so people can shop for used items online the same way they would shop for new items on the internet, NTY’s chief
A lot of new websites have popped up online over the last several years that offer the service of reselling used items to customers, Olson noted, which has changed the online resale retail landscape. With this change in the landscape comes opportunity for Clothes Mentor, which will start rolling out its online store in baby steps. First off, customers will have the ability to ‘click and pick,’ meaning they can make a purchase at their local Clothes Mentor store and then pick it up at the physical store. From there, the online store will expand until it is an integral part of the business. Clothes Mentor also has an app that will allow the brand to push messages out to
customers, allow customers to check their loyalty program points and give them electronic receipts so they don’t have to hang onto the paper ones in case they want to return something. Eventually, Clothes Mentor’s online store will also be available through the app, but that is a ways off as the brand is just getting started with its online store. “This is a pretty big shift in our business model, so we’re going to make sure we do it right,” Olson explained. Clothes Mentor isn’t just using technology to give customers a better experience, though. It’s also using technology to give its franchisees a boost, too. Specifically, it’s collecting more data on customers so franchisees can give them more personalized marketing. Recent generations like Millennials appreciate this more personalized marketing, Olson observed. Across all five of the company’s brands, it has 193 stores open with another 56 in development. Clothes Mentor, NTY’s flagship franchise, claims the majority of those locations. “Our number one goal is to offer the customer what we refer to as ‘Ultra high value retail’,” Olson said. “The stuff that we’re selling at the store level is at a much deeper discount than anywhere else they can find it because it is gently used.” Aside from giving people the opportunity to save money, NYT also offers people the chance to recycle their items and receive cash in return, Olson mentioned.
In the Beginning Clothes Mentor was founded in Columbus, OH by a local couple in 2001. Aside from the Columbus store, Clothes Mentor had a licensed store in Canton, OH. Olson and his father, Ron Olson, decided to go into business together, both having retail franchising experience with another company. When they began looking at what opportunities were out there for their own business, they found out about Clothes Mentor and noted the two stores were doing quite well. From there, the father
“Our number one goal is to offer the customer what we refer to as ‘Ultra high value retail. The stuff that we’re selling at the store level is at a much deeper discount than anywhere else they can find it because it is gently used.” - Chad Olson. and son negotiated the franchising rights to that brand in 2007 and have been adding to the NTY family ever since.
Energy NTY’s franchisees come from all walks of life, from kindergarten teachers to former professional bull riders. Regardless of their background, though, NTY wants franchisees to have a strong work ethic and enthusiasm.
Once the new franchisee is set up, they can expect NTY to visit their location a minimum of three times throughout
their first year. Once will be prior to their
grand opening and will include additional training. Subsequent visits will be during
the grand opening and then again 90 days after the grand opening. Each visit is to
ensure new franchisees get off to the best start possible.
“We would like them to have general business acumen, but more importantly, is that they have the energy, the drive, the motivation to be entrepreneurial,” Olson said. “We’re looking for people that want to be their own boss, but who have experience in one facet or another. We want them to bring their own skill set to the company.”
Franchisees will continue to get visits
Training and Support
be successful making money,” the COO
from the company at least once per year
for business consultations, Olson added. In between visits, the company offers monthly support calls.
“The ongoing support is fairly extensive because obviously in the franchise business, if our franchisees aren’t
successful, then us as a franchisor will not
Training involves flying new franchisees out to Minneapolis for the company’s comprehensive three week business training program. NTY trains them in finding and leasing a location, plus business plan training.
said.
“We basically prepare them in that training to go to a bank to obtain financing,” Olson said. “So we create a three-year profit and loss and cash flow statement. So, they leave here after that first bit of training prepared to find and obtain a location and obtain financing for the business.”
in 30 states and is relatively well spread
Once they have a location and financing, franchisees come back to Minneapolis for two weeks of operations training, where they are taught all aspects of how to operate the business. At least one of those weeks is spent in a real store environment.
Expansion All of NTY’s brands are open to
expanding anywhere in the United States. Currently, the company has a presence
out, although a tad thin on the west coast, Olson noted.
“There’s lots of franchising opportunity
available, especially on the west coast,” he explained.
For entrepreneurs who embrace
technology, NTY, and Clothes Mentor in
particular, offer a great opportunity to get in on the ground floor of something new and exciting in the resale retail industry. www.ntyfranchise.com
Franchising USA
cov er sto ry
Page 11
ex per t advice
Brian Scudamore, Founder & CEO, O2E (Ordinary to Exceptional) Brands
The Business of
Smart Branding It’s true what they say: there really is no such thing as bad press. Case in point? Donald Trump. No matter if you love or loathe him, you know his name. And because it’s everywhere, a large percentage of the American populace associate him with leadership, wealth, and success. ‘The Donald’ is such a powerful brand, that entire social media campaigns have been launched to stop him. Time and again, research shows that brand awareness is a key decision-making factor for consumers. It’s no surprise then to learn that the higher your brand recognition, the higher your profits. It’s why I believe in the Always Be Branded marketing philosophy, and make use of it daily in my own business.
Franchising USA
“Choose a piece of clothing and make it yours. Facebook’s Mark Zuckerberg sticks to his simple grey t-shirts. Steve Jobs wore jeans and a turtleneck. I never leave the house without my branded Converse sneakers.” Here are ways you can live your brand, too.
comfortable Chucks. Always take the
Dress to Impress
who might end up using your services.
Choose a piece of clothing and make it yours. Facebook’s Mark Zuckerberg sticks to his simple grey t-shirts. Steve Jobs wore jeans and a turtleneck. I never leave the house without my branded Converse sneakers. Don’t be afraid to wear your company’s logo with pride. I keep my outfits relatively low-key, and rep my brand in a pair of
advantage of opportunities to get noticed, especially if you interacting with people I’ve learned that my branded shoes are fantastic conversation openers.
Don’t Leave Home Without It Marketing guru Seth Godin advises
entrepreneurs to always stand out in a
crowd. People remember individuals, so
be ready to embrace non-conformity. This can mean pulling publicity stunts, like
“Your greatest asset as a business owner is your staff. They hold the key to multiplying your company’s branding power.” when Uber generated goodwill in new markets by delivering puppies to office workers. We once gave out blue wigs at a playoff hockey game and attracted major media attention. You don’t need to have a budget for this kind of marketing to make a big impact. Simply bring your brand to a public and unexpected space: like an airport or a local tourist attraction. People will be intrigued and will want to know your story.
Think Guidelines, Not Rules At O2E Brands, we are big proponents of guerrilla marketing. One of the tactics we use regularly is knows as “parketing”, where we park a branded vehicle in a residential neighborhood so it can serve as a mini billboard. And we’re not the only company with a non-traditional approach to attention-grabbing stunts: Britain’s Vodaphone sent two streakers into a rugby game with only a strategically placed logo and a lot of double-sided tape. These approaches aren’t going to connect with everyone, but outside of streakers, they aren’t breaking any rules. And if your first idea doesn’t work, just remove the tape, put on your clothes, and move on. At the very least, people will remember you and your brand!
Get Your Employees Talking Your greatest asset as a business owner is your staff. They hold the key to multiplying your company’s branding power. A recent study found that companies with strong internal brand promotion, 65 percent saw improvement in branding recognition and 34 percent experienced increased brand loyalty.
We provide staff with ultra-visible resources, from wrapped vehicles to branded clothing. Beyond the logo, our employee ambassadors are crucial in terms of amplifying company news and messaging on social media and through their personal networks. In the end, these initiatives help create strong brand identity within your company. With more and more research showing that people trust word-ofmouth recommendations over traditional advertising, it’s important to encourage your team to have fun wearing their branded swag - much the same way they
would for their favourite sports team. It will bring you and your team together while boosting your bottom line. Just remember, it’s as simple as ABB: Always Be Branded. Brian Scudamore is the founder and CEO of O2E (Ordinary to Exceptional) Brands, which includes companies like 1-800-GOT-JUNK?, WOW 1 DAY PAINTING,You Move Me and Shack Shine. Brian is passionate about helping others grow small to medium businesses and corporate culture. Tweet Brian at @brianscudamore
Franchising USA
ex per t advice
Page 13
ex per t advice
John Waldmann, Co-founder & CEO, Homebase
Overtime Rule Changes:
How to Prepare Your Franchise Store
Franchise businesses have relied upon the ability to hire employees at a guaranteed annual salary without paying attention to the number of hours worked. A recent rule change may end that practice by raising the salary threshold to exempt from overtime.
change, but it’s clear the rules will mean changes for all businesses in the industry.
We have spoken to many franchise store owners that support the goals of the
Before you panic, this may not mean an increase to total wages but merely
Franchising USA
What does the rule change mean for your bar? Under the new overtime rules, employers must pay overtime to salaried employees earning less than $47,476 per year. The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on January 1, 2020. There are no changes to the standard duties tests. Employers must comply with the changes by December 1, 2016.
a conversion from an annual salary to an hourly rate. Simply calculate the approximate number of straight time hours and overtime hours to determine the hourly rate equivalent of the employee’s annual salary. For example, the hourly rate conversion for an employee, who works on average 60 hours a week and earns a salary of $32,760 per year is $9/ hr (40 hours straight time, 20 hours overtime). You can find a convenient calculator here: https://joinhomebase.com/overtime-wagecalculator/ In calculating the conversions, keep in mind that the hourly rate equivalent cannot fall below the federal and state minimum wage. For example, if managers, or other
“Conduct an audit immediately to determine if the changes will impact your organization and begin preparing your business.” minimum annual salary or face additional tracking. That’s not all, for employees earning a salary of less than $47,476, you will also have to comply with any state meal breaks or rest period requirements.
The impact on employees Although the rules are intended to improve the ratio of working hours to wages for employees, there may be a number of other impacts employees may face: 1. Hourly employees shifts may be cut to reduce overtime hours. 2. Hourly employees may pick up shifts or second jobs from other employers to cover the loss of wages. 3. Exempt employees may have added job duties as tasks are transferred from hourly employees to exempt employees in an effort to reduce overtime.
salaried employees are working on average 80 hours a week, their annual pay will
total $37,700 annually if minimum wage is $7.25 in your state, or $41,600 if minimum wage is $8/hr.
The new roles will also affect bonuses. Guidance has not yet been issued
regarding whether or not bonus payments may be calculated into the exempt status annual salary minimums. However,
even under the old rule, for non-exempt employees’ bonus payments must be
added into the calculation of the hourly
rate for purposes of calculating overtime payments. This means you may have
to eliminate any bonuses for salaried employees who fall below the new
4. Employees who have been promoted to salaried jobs may feel demoralized by the change in status and a feeling of demotion.
How to prepare For franchise stores, an increase to wages is not an option. If you are in this boat, now is the time to make changes in your business. Consider the following: 1. Leverage technology to increase productivity. Technology options for the franchise industry have never been cheaper or more effective. Whether the task is tracking inventory, managing employee schedules, running payroll, or calculating profitability, there is a raft of new options that can save hours of management time. Many vendors may even provide solutions for free. 2. Focus on reducing employee turnover. Turnover is a part of the industry but
John Waldmann
it is time intensive. Implement an HR action plan to reduce turnover, including increased rewards and recognition, effective communication, and development opportunities. Hire employees who live closer to your location. Conduct exit interviews to figure out what went wrong. Then save time on hiring: consider outsourcing recruiting or resume screening. 3. Evaluate responsibilities in your shop. Which job duties take too long for the value they produce? Which job duties can be offloaded to an exempt employee or a lower paid employee? What tasks can be eliminated completely using technology or a process change? Use the rule change as a time to re-evaluate and redistribute responsibilities. 4. Cross-train your staff. Develop a training plan to cross-train staff in essential duties for hard to fill positions. Having a well-trained staff can provide additional flexibility in assigning hours to avoid overtime. Don’t delay. Conduct an audit immediately to determine if the changes will impact your organization and begin preparing your business. And don’t forget to prepare your team. Ask for their help in preparing, and over-communicate any changes you make. You will be facing the new rules together on December 1st. John Waldmann is the co-founder and CEO of Homebase in San Francisco, which provides a free software solution to thousands of small businesses to help owners and managers control overtime payments and eliminate paperwork. www.joinhomebase.com
Franchising USA
ex per t advice
Page 15
franchisee in acti o n
Foot Solu tions
FOOT SOLUTIONS: Franchise
with a Heart Foot Solutions is the world’s largest specialty wellness franchise focused exclusively on helping people feel good from the feet up. Founded in 2000 by successful entrepreneur and military veteran Ray Margiano, Foot Solutions has grown to more than 100 stores throughout the United States and abroad. Foot Solutions
Franchising USA
“The biggest reward is hearing customers say, “You’ve really helped me,”. “Our customers continually express their gratitude for bringing this much-needed business to the area.” – John Garrity helps to relieve foot, knee, hip and back pain, and improve comfort, balance,
performance and body alignment for a
market that is primarily over 40 years old. The Foot Solutions approach combines a holistic foot analysis with foot supports and fashionable, high-quality comfort
footwear for work, dress and recreation.
In 2007, the Garritys opened their first Foot Solutions store in Easton, Pennsylvania, on the east end of Lehigh Valley, near their home. “There was just nothing out there like Foot Solutions. I could see that there was a real need for this kind of service,” John says. “Foot Solutions also fills a distinct niche in the health care arena that is presently underserved in our local market.” Theirs is a family business, with daughter Kelly coordinating insurance coverage for qualifying customers. They’d always intended to expand to a second store, but put those plans on hold when the recession hit. Their store became so busy that in 2012, they began looking for a second location. When a property on the West end of Lehigh Valley became available, they opened their second store in Allentown in February, 2016. “I think we’re sized properly with the two stores,” John says. “Business has picked up nicely. We’re quite happy with the way it’s grown.”
JOHN & STEPHANIE GARRITY Foot Solutions Easton and Allentown, Pennsylvania John Garrity retired from 30-plus years in corporate America to fulfill a lifelong dream. He and wife Stephanie shared extensive backgrounds in customer service and the desire to own their own business. But not just any business would do. “We were looking for something unique, with high customer touch, a lot of interaction and an opportunity to make a difference in people’s lives,” John says. “As we researched various franchise opportunities, Foot Solutions stood out as the best for us to leverage our customer service experience with our passion for helping people. This was a good fit for our skills and interests.”
The biggest reward is hearing customers say, “’You’ve really helped me,’” he says. “Our customers continually express their gratitude for bringing this much-needed business to the area and enthusiastically recommend us to their family and friends. With stores in both the East and West ends of the valley, we’re able to help more people than ever. That’s the reason we’re here.”
“It’s not about selling. It’s about connecting with the customers and finding solutions.” – Sue Orischak orthotic foot supports and the right shoes to address their pain and health issues. Intrigued, she wondered whether Foot Solutions was a franchise. With plans to move from Denver to Arizona, she called corporate headquarters. It turned out that a two-year-old store was available in Scottsdale. Sue bought it in 2004 with the vision of creating a fresh and fashionable store that could accommodate orthotics if needed and take care of foot, knee, hip and back problems.
SUE ORISCHAK Foot Solutions Scottsdale, Arizona
The first three weeks were intensive onthe-job training, Sue says. What was her biggest challenge? “First, understanding and gaining competency on the medical side of things. I had to learn to both assess the customer’s feet and come up with the optimal solution.”
Sue Orischak was an artist and interior designer in the Denver, Colorado area. She and husband Larry went to the grand opening of a Foot Solutions there in search of relief for Larry’s foot and back issues. Sue saw the Amfit foot scanner in the store and recognized that people needed a holistic approach and a total package of
Under Sue’s leadership, the Scottsdale store has continued to grow. “We’ve had over a million dollars in sales for each of the last nine years,” she says. But she knows that’s not enough. “We’re always looking for new products, new ideas, and new ways to keep the store fresh and revitalized.”
Franchising USA
franchisee in actio n
Page 17
franchisee in acti o n
Foot Solu tions The biggest reward isn’t the money. “We have a lot of long-time and repeat customers that we’re able to help. Many of them become dear and close friends,” Sue says. Her secret to success, she says is taking a personal approach. “It’s not about selling,” she says. “It’s about connecting with the customers and finding solutions.”
Foot Solutions Founder and CEO Ray Margiano is a proud veteran. “We understand the challenges that veterans experience. We can work with veterans to help build a successful business and make their dreams a reality,” he says. “You’ll feel good helping customers feel good.” store management experience is a great complement to their partnership. “Our level of satisfaction is a 10,” he says.
MIKE & ROSIE SMITH Foot Solutions, Little Rock, Arkansas A decade ago, Mike Smith was struggling with hallux limitus—an arthritic condition of the big toe—and it hurt too much to walk. “I had tried everything, including doctors, and all of them wanted to do a surgical fusion of my big toe,” Mike says. He saw an ad for a nearby Foot Solutions store in Encinitas, California that said they could help various conditions, including his. Impressed, he visited the store. “They made me a custom orthotic and recommended a rocker sole shoe, which I wear to this day. It was like a miracle,” Mike says. And he was intrigued.
What Mike likes best about running a Foot Solutions franchise is that the combination of patience and knowing how to help people with their feet solutions can spell success. He and Rosie take a medical approach to serving customers. “We focus on how to correct foot problems, because that’s what my experience was. About half of our business is custom orthotics. That differentiates us from pretty much any other shoe store that the customer might go into. All of the patients that walk through our door have a thorough foot evaluation. We’ll show them what they want to look at, but we make it clear that just buying a shoe
might not address what they’re feeling in their feet,” Mike says. Foot Solutions is a really good franchise for veterans to consider Mike says, because it is first and foremost a people business. “In the military, you have to learn to get along with people and work as a team. In many cases, you’ve had a management role and directed people. Of all the things out there that a veteran could do, this would be one that I think would fit many veterans’ mentality and ability to work with the public,” he says. Veteran’s education benefits are eligible for the Pedorthic Certificate Program at The Academy of Pedorthic Science. www.footsolutions.com
He and wife Rosie researched Foot Solutions, reached out to Founder and CEO Ray Margiano, and within 30 days they bought a franchise. When they couldn’t find a California location that didn’t already have a Foot Solutions, they chose Little Rock, which is near family. They opened their store on April 15, 2006. Along with his Army service in Vietnam from 1966 – 1968, Mike brought an extensive background as a buyer and manager with Sears, Walmart and Hudson Bay Corporation in Canada to his new venture. Rosie’s significant
Franchising USA
“Of all the things out there that a veteran could do, this would be one that I think would fit many veterans’ mentality and ability to work with the public.” – Mike Smith
Page 19
ScerIS Recruiting Partners Program Recruiting as a Service (RaaS) Work from Home, Camp, Boat or Hammock No Franchise Fee, No Hidden Fees Earn Fees for the Life of Your Placements 6FHU,6 LV EXLOGLQJ D QDWLRQDO LQGHSHQGHQW VDOHV RUJDQL]DWLRQ DQG VHHNV LQGLYLGXDOV ZLWK QHWZRUNLQJ UHFUXLWLQJ DQG SURVSHFWLQJ VNLOOV WR KHOS XV ¿QG TXDOL¿HG FDQGLGDWHV <RXU LGHQWL¿FDWLRQ RI LQGLYLGXDOV ZKR VHUYH DV %XVLQHVV 5HIHUUDO 3DUWQHUV RU DV ,QGHSHQGHQW 6DOHV $VVRFLDWHV FDQ HDUQ \RX VLJQL¿FDQW UHFXUULQJ IHHV RQ D VLQJOH SODFHPHQW 0RVW UHFUXLWLQJ VHUYLFHV RUJDQL]DWLRQV HDUQ WKHLU IHHV WKURXJK D FRPPLVVLRQ EDVHG SODFHPHQW JHWWLQJ D SHUFHQWDJH RI WKH ZDJHV RI WKH SODFHG HPSOR\HH RU WKURXJK D UHWDLQHG VHDUFK ¿[HG IHH DVVLJQHG WR PDNLQJ D SODFHPHQW $W 6FHU,6 WKLQJV DUH GLIIHUHQW <RXU UHFUXLWLQJ HIIRUWV WKDW UHVXOW LQ D SODFHPHQW DW 6FHU,6 SURYLGH \RX ZLWK IHHV WLHG WR WKH HDUQLQJV RI WKH %XVLQHVV 5HIHUUDO 3DUWQHU DQG ,QGHSHQGHQW 6DOHV $VVRFLDWH IRU DV ORQJ DV WKH\ UHFHLYH IHHV IURP 6FHU,6 $Q ,QGHSHQGHQW 6DOHV $VVRFLDWH FDQ HDUQ DQ\ZKHUH IURP WR RYHU RQ D VLQJOH WUDQVDFWLRQ ZLWK 6FHU,6 $V WKHLU 5HFUXLWHU \RX HDUQ RI ZKDWHYHU WKH\¶UH SDLG E\ 6FHU,6 WKLV \HDU QH[W \HDU DQG LQ VXEVHTXHQW \HDUV $V DQ H[DPSOH LI \RX SODFH D WRWDO RI ¿YH DVVRFLDWHV LQ WKH ¿UVW \HDU DQG HDFK SODFHPHQW PDNHV RQ DYHUDJH DQQXDOO\ IRU \RXU ¿UVW ¿YH SODFHPHQWV \RX VKRXOG PDNH DERXW SHU \HDU ; ; .HHS SODFLQJ ¿YH DVVRFLDWHV DQQXDOO\ DQG ZDWFK \RXU LQFRPH JURZ WR DQG WKHQ WR DQG VR RQ ,I \RX SODFH SHU PRQWK \RX FRXOG EH PDNLQJ DERXW SHU \HDU ; ; DQG ZDWFKLQJ \RXU LQFRPH JURZ E\ WKLV DPRXQW DQQXDOO\ <RXU LQFRPH LV GLUHFWO\ SURSRUWLRQDO WR \RXU HIIRUWV LGHQWL¿FDWLRQ DQG SODFHPHQW RI UHFUXLWV DQG WKHLU SHUVRQDO SHUIRUPDQFH 7KHUH LV QR RWKHU RSSRUWXQLW\ WKDW ZH DUH DZDUH RI WKDW SURYLGHV WKLV DPRXQW RI SRWHQWLDO HVSHFLDOO\ ZLWKRXW IURQW HQG IHHV 7KLV SURJUDP UHTXLUHV OLWWOH WUDLQLQJ DQG FDQ EH SHUIRUPHG ZHHNGD\V QLJKWV RU ZHHNHQGV RQ D IXOO WLPH EDVLV RU SDUW WLPH EDVLV 1HDUO\ HYHU\ EXVLQHVV RI HYHU\ W\SH KDV EHFRPH D SURVSHFW IRU WKH FRPSDQ\¶V SURGXFWV DQG VHUYLFHV ZZZ VFHULV FRP LQGXVWULHV). 7KLV LV D WUXO\ XQLTXH VLWXDWLRQ WKDW¶V UHVXOWHG IURP FUHDWLQJ D WHFKQRORJ\ SODWIRUP WKDW KHOSV RUJDQL]DWLRQV EXLOG DSSOLFDWLRQV DYRLG WKH QHHG WR SXUFKDVH SRLQW VROXWLRQV DQG LQQRYDWH ZLWK YHORFLW\ :H GRQ¶W ZDQW \RXU PRQH\ :H GRQ¶W ZDQW \RX WR ULVN D WKLQJ EXW \RXU WLPH $W 6FHU,6 ZH OLYH E\ WKH PDQWUD WKDW ³WKHUH¶V QR VXEVWLWXWH IRU GRLQJ WKH ZRUN´ :H ZDQW WR ZRUN ZLWK SHRSOH WKDW VKDUH RXU YDOXHV :DQW WR OHDUQ PRUH" 9LVLW ZZZ VFHULV FRP UHFUXLWHUVBSURJUDP RU FDOO WR VFKHGXOH WR KDYH RQH RI RXU H[HFXWLYHV FDOO \RX WR GLVFXVV WKLV ,QQRYDWLYH 2SSRUWXQLW\
SceriS
®
At ScerIS, information is alive!
&RUSRUDWH 2I¿FH 490 Boston Post Road Sudbury, MA 01776 (978) 218-5000 ZZZ VFHULV FRP
Franchising USA
question time
Q & A w ith Ashley M or r is
with Ashley Our team at Franchising USA had a chance to sit down with Ashley Morris of Capriotti’s, to learn more about the growth and success of this franchise brand. Tell us about the Capriotti’s concept. The core concept for Capriotti’s is serving high quality sandwiches using fresh, all-
natural ingredients. We slow-roast whole,
all natural turkeys in house every day. We slow-cook our beef overnight every night and have fresh rolls and other produce
delivered daily. That’s the concept that
motivated our founder when she opened the first Capriotti’s and we carry that tradition on today.
Franchising USA
What are some of the best advantages of being a Capriotti’s franchisee? First and foremost, I believe we sell the best-tasting sandwiches and food in the quick-serve and fast casual space and our franchisees can be incredibly passionate about what they’re selling. They can eat the food happily and take pride in the product that comes out of their restaurant. Secondly, if you’re a person who wants to be in the sandwich space, there are a lot of franchises that are the same, but we are different – we have a niche. We’re more of a fast casual sandwich chain than we are a quick-serve and we have a product that’s easy to differentiate from the competition. Another key advantage is catering. Everyone says they cater, but we do a pretty big percentage of our business from catering orders. There’s tremendous business opportunity in catering. Our catering options work for our customers and sell well. It’s something we pride
“I think what makes Capriotti’s so great through 40 years, through economic booms and times of recession, is that the company hasn’t broken its brand promise…we never compromised on quality when it would have been so easy to do in order to reduce costs and help the bottom line.”
y Morris ourselves on and it’s a tremendous opportunity for our franchisees to differentiate.
Describe your ideal franchisee. Our ideal franchisees are passionate about our product. They’ve demonstrated past success in business, franchising or the restaurant space. They understand and align with our values of integrity, passion, family, genuineness, and profitability. They embrace the important role marketing plays in the success of their business and of Capriotti’s as a whole.
Tell us about any upcoming trends you foresee in the fast casual industry. What is Capriotti’s doing to keep up with these trends? There’s a continued focus on using higherquality ingredients with less artificial stuff. For 40 years, we have served all-natural, hormone-free, real Butterball
turkey – the one ingredient in our turkey is turkey. This is true of all our proteins. The only ingredient in our beef is beef – it’s a whole-top brown that we slow cook every night, so our proteins already meet this consumer demand and have for 40 years. Our founder was ahead of her time and we’re ahead of the trend. I also think there’s a commitment by people to eating less calories and we’ve embraced that through our soups and salads. There’s also a trend within the restaurant space to embrace technology – having a mobile app, allowing customers to order online, being able to communicate as a brand through digital and social channels. Customers want to engage with brands and be part of them. We have all of those things. We have our app, we have social channels and we invite and encourage our customers to engage us there.
Capriotti’s is celebrating its 40th anniversary this year. What are the most important factors that have helped Capriotti’s stay successful for 40 years?
I think what makes Capriotti’s so great through 40 years, through economic booms and times of recession, is that the company hasn’t broken its brand promise. This company was created on our founder’s love of real, high-quality meat. This company started with the idea that we’re not going to use processed, preserved, bad products. Even when the going got tough, we never broke that brand promise; we never compromised on quality when it would have been so easy to do in order to reduce costs and help the bottom line. That’s probably the contributing factor in our longevity.
What has been the biggest challenge you’ve had to overcome to expand the Capriotti’s franchise? The biggest challenge we’ve had to overcome is opening new locations far away from our core markets. We’ve been able to overcome it through strong, system-wide distribution and product manufacturing agreements. Operating too far away from your other restaurants can be tough, but we’ve managed it. It entails careful expansion and opening new distribution channels and being smart about our collective marketing efforts to strengthen brand recognition in new markets. www.capriottis.com
Franchising USA
question time
Page 21
ex per t advice
Kyle Zagrodzky, President, OsteoStrong
How to Fine Tune Your Brand’s Voice If a company is a person, the brand is the personality. Branding is the series of expressions that sends messages to the world about who you are, what you do, and why. Brands are so important because they not only project an image to customers, they keep the company focused. Branding is a lot more than a name, tagline, logo, and colors. It’s the core of your identity, a visual and verbal handshake that introduces your business to new people, reminds them who you are once they become customers, and keeps your franchise team anchored and inspired. When symbols are that important and define your business in such a big way, getting them just right is essential. Branding should always be clear, clean, and concise, but sometimes simplicity is the hardest thing to achieve. As you set out to define and refine your brand ideals and messaging, these tips will help you find the best way to tell your story.
Start by answering this question: What’s the point of your franchise? Every business was created to serve a need for a specific audience. If you believed in an idea enough to create a company, you know something makes you different and worthy of notice. Are you faster, friendlier, fresher, cheaper, or more wholesome?
Franchising USA
What do you hope people get out of your product or service? Branding is the “who” of your business, and that personality and mission is the first place to get inspiration for your colors, logo, and core messaging.
Keep it under six. Great branding sends a powerful message with absolute brevity. When you love a business, it’s easy to talk about it for ages, but good branding can tell your story in six words or less. That’s right: Six. Everything your business does can and should fit into six words. Once you define that message, those six words become an anchor that keeps future development in line. For example, a donut shop shouldn’t offer yoga classes, but a donut shop could sell coffee mugs. The six words keep a brand consistent and coherent.
Give it time so you can do it right. When you’re excited about building a franchise, branding may not be your primary focus. You’re thinking about scalability, recruitment, growth, and the numbers. Sometimes branding gets pushed aside in the rush to launch a franchise, but it should be a top priority. Why? As a franchise grows, branding will attract not only customers, but also franchisees. Branding shows the world a united image that connects the dots between locations. If you invest in a strong brand before you go into a major launch, the franchise will look 10 times more professional. If you don’t deal with branding, the business will look bush league and you won’t be taken as seriously.
Enlist outside help to refine your image and message. One of the best ways to ensure you build a brand that will stand the test of time is to get professional opinions before investing in collateral. We all have our areas of expertise, and sometimes it’s worth working with an expert to get great results the first time. Every dollar counts when you’re building a big business, but this is one area where the investment will have major value immediately and for years to come.
Don’t water the brand down by trying to please everyone. When hammering out the specific notes of your brand’s voice, it’s important to stay true to the initial passion that drove you to launch a franchise in the first place. Everyone from your spouse to walk-in clients will have an opinion about a better color or logo element, but once your branding is set, you need to stick to it. Rebrands are expensive and confusing for customers, and they can make a company look disjointed.
Beware the dangers of over-tweaking. Smaller businesses might be able to change their branding on a whim, but growing franchises should tread lightly when it comes to altering graphics, colors, fonts, logos, or language. When you’re growing a franchise, consistency is everything. It’s critical to present a unified image across the board to start building brand recognition. Too many changes to core branding makes a company look schizophrenic, as if you don’t quite know
“Branding is the “who” of your business, and that personality and mission is the first place to get inspiration for your colors, logo, and core messaging.”
e
who you are. It also generates major expenses. Once you define the colors, logo, and core messaging, don’t deviate too far. The only reason companies rebrand from the ground up is because they’re trying to move on from a crisis, or because the old concept became tired and dated. Since franchising is about building something consistent, don’t tweak the core brand too much once you’ve committed. Kyle Zagrodzky is president of OsteoStrong, the health and wellness system with a focus on stronger bones, improved strength, and better balance in less than 10 minutes a week using scientifically proven and patented osteogenic loading technology. OsteoStrong introduced a new era in modern wellness and anti-aging in 2011 and has since helped thousands of clients between ages 8 and 98 improve strength, balance, endurance, and bone density. In 2014, the brand signed commitments with nine regional developers to launch 500 new locations across America. Today, the OsteoStrong brand is staying true to its growth
towards a brand with global reach with the addition of more franchise sales and new regional developers. www.osteostrong.com
Kyle Zagrodzky
Franchising USA
ex per t advice
Page 23
ex per t advice
Pamela Herrmann & Patty Dominguez, Co-Founders, CREATE Buzz
Key M with
– Everythin
A client recently bemoaned that she was investing as much as she possibly could in marketing her business, often times at the expense of her drawing a salary. When we asked her how much new business was coming from these marketing campaigns, she shrugged her shoulders. Pamela Herrmann
Patty Dominguez
“The key to increasing profits is to get your existing customers to come more often, buy more and tell others.” Franchising USA
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” John Wanamaker, Advertising Pioneer Today we have mounds of data on everything from customer acquisition to customer retention and while this information is designed to create efficiencies and improve the way we do business, it actually only serves to create
Metrics to Monitor h Your Customers
verything Else Is a Distraction more confusion. Studies show that having a bunch of information doesn’t necessarily help you solve the problem. When it comes to getting and keeping customers, there are two key metrics that every business owner should know:
Customer Acquisition Cost (CAC) If you have an expense line item for marketing and advertising campaigns, then you should be tracking how much new business is coming in as a result of those campaigns so that you can measure its effectiveness. One client had invested $6,300 over a three-year period with a glossy magazine that gets drop shipped into a geo targeted area. The seductive pitch of it landing on the desk and countertops of 30,000 of her ideal customers was too good to pass up. Since she tracks in her CRM how her new customers find her business, it was a simple matter of pulling a report that revealed it was a wasted investment. She didn’t receive even one new customer from that campaign. Further, when you put it in perspective that if she had acquired, for example, 3 new customers as a result of that campaign, her CAC would have been $2,100 (that’s $2,100 for each new client!). Can you get a new customer for less than that? Absolutely! You can get leads for a few dollars in Facebook all day long. Every marketing campaign should be measured against your CAC. Simply
break apart your marketing line item and understand how much is being allocated for each campaign, query your new customers as to how they found you, monitor the results, make decisions as to whether the results are in alignment with your goals then slash and burn what’s not measuring up.
Customer Lifetime Value (LTV) Walk into any bookstore, go to the business section and what you’ll find is that the vast majority of them are written about customer acquisition. While acquiring new customers is essential, Gallup estimates that businesses are only doing 1/3 the business they should be doing with their existing customers. That means if you’re doing $1 million in sales, there is a full $2 million in low hanging fruit that is going unpicked. If you want to pull the profit lever in your business, this is the metric to dial down. The key to increasing profits is to get your existing customers to come more often, buy more and tell others. Businesses that focus extending customer engagement beyond the first transaction have a higher probability of creating greater customer loyalty, which equates to higher profits.
The benefits of knowing your LTV: You can increase LTV by extending your product and service offerings.
You can put parameters around what you would be willing to invest to recover that customer should things go off the rails You now have an understanding of how much to invest to acquire a new customer. For example, if your LTV is $1,500, you can make an investment decision based on real numbers, not guessing. A good rule of thumb is 5:1 ratio (LTV to CAC). While it’s easy to get bogged down in the process of getting and keeping customers, keep it simple and focus on the two metrics that tell you the true story of your customers. Manage and monitor your campaigns closely so that you can determine your CAC and make swift decisions if they fail to deliver results. Cautiously enter into long term advertising agreements that don’t give you an exit if it’s not performing to your metrics. Keep your finger on your LTV as it is the True North that will guide your increased profitability. Best-selling author Pamela Herrmann & Patty Dominguez are the Co-Founders of CREATE Buzz, committed to helping small businesses get customers and keep customers by taking the overwhelm out of technology and online marketing. Pamela is the author of, “The Customer Manifesto - How Business Has Failed Customers & What It Takes To Earn Lasting Loyalty”. They co-host The Morning Would Show bringing the latest in marketing tips and strategies. www.createbuzznow.com
Franchising USA
ex per t advice
Page 25
M O B I L E FR A NCH ISI NG FE AT U R E
Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
mobile franchising
e r u t Fea
Throughout the years the economy has evolved and developed its processes to adapt to the necessities and wants of the consumer. In fact franchises were born out of a changing necessity; people wanted the same product and service from a specific brand available in other parts of the country. The need for consistency and expectation was in demand, so the economy responded. Nowadays, people want immediate results and they do not want to work for it. It may be considered an unfortunate characteristic for humanity to express, but it is reality and businesses have to adjust to the ever growing demands of the consumer. Mobile franchises are the after effect of a changing and fast paced American lifestyle. Most family members are
Franchising USA
working, commuting and parenting without enough time to run errands. We could all use a milkman nowadays, but realistically, that whole process is not economically feasible. Franchises are being packed into a four wheeled area and able to move from location to location. Such a set up allows franchisees to create their own schedule, move about as they please and create a very specific work and life balance. Though mobile services used to be limited, they have now reached a whole other level of expertise, with a variety of franchises looking into these types of services. One of the biggest benefits of mobile businesses is the limited start up costs. There is no structure or building or construction before the opening of doors. Once franchisees are trained, they can start their business as soon as possible, without any construction delays or mishap. The startup can be clean, quick and immediate.
However, franchisees should be aware that they may have to be very involved in the day to day business at first. In order to get the business off the ground, a franchisee may find it easier and more cost efficient to run the whole show themselves. As profit rolls in and business takes off, an owner can hire staff to better balance their work and life. There are many different mobile franchises and we will consider a few, along with the pros and cons of each.
Computer Technology and Repairs The internet is no longer a luxury. In our country it is almost a necessity in order to function. Itâ&#x20AC;&#x2122;s part of peopleâ&#x20AC;&#x2122;s work life, social life and a vital part of communication. When something goes wrong, people used to have to pack up their computer, find the proper shop and wait for it to be fixed. Our dependency on the internet and worldwide communication has changed consumerâ&#x20AC;&#x2122;s demands and wants when it
â&#x20AC;&#x153;Think of a business and it can likely become mobile; it just depends on whether or not you want to be behind the wheel.â&#x20AC;?
comes to computer function. We do not have the time or ability to wait for our computers to be up and running, it has to be fixed as soon as possible. Mobile franchises can come to your home and complete immediate repairs for customers to continue on with their life. Since most American households have a computer, there is a wide population of consumers in this industry. 84 percent of adults use the internet, while in 2015, 71 percent owned a desktop or laptop in the country.
Franchising USA
M O B I L E FR A NCH ISI NG FE AT U R E
Page 27
M O B I L E FR A NCH ISI NG FE AT U R E
Featu re
b y G i n a G i l l Fr a n c h i s i n g U S A
Bike Repairs Sometimes we consider mobile businesses to offer typical services, but as mentioned earlier, the economy is ever progressing. Slowly but surely a new mobile service has been born. The bike repair service allows people to come to the consumer to repair bikes. Beforehand, people would have to bring their bike to the shop, leave it for a long time and wait and business were usually bombarded all at once. Now people can schedule an appointment, and franchisees can conveniently show up at the customer’s own residence and get the bike back on the road in no time. More and more people are using their bikes to commute and for recreational activity. Businesses are delivering a variety of goods and services with bikes, to dodge crazy traffic jams. Over 47 million Americans were riding their bikes throughout the year in 2008, which increased to over 67 million in 2014. There are a lot of bikers pending on repair throughout the country. One of the downfalls of computer
“For those that would truly like to be their own boss, a mobile business should be considered.”
technology is understanding the process.
It can be technical and though sometimes franchisees can function without an
understanding of the task at hand, it is very important to know all aspects of a mobile business.
For those uninterested in technology, this
may not be a smart investment. Though it
produces a plethora of guaranteed clients, a passion for computers is important.
Franchising USA
The great news about this type of mobile service, franchisees can work on their own schedule. Though consumers would prefer immediate service, for the most part, they do not mind booking by appointment for their bike repair. A very important limitation is location. Of all those millions of bike owners, it’s safe to assume that more people are riding bikes in the populated and high traffic areas and locations with yearlong great weather. A state with long and brutal winters, would really limit a customer population throughout the year.
“It’s important for those interested in mobile franchising to recognize their strengths and weaknesses. It’s a very independently run business that would take a strong discipline to be run successfully.” Lawn and Gardening Services This type of franchise is obviously mobile. The product to be serviced is literally at your doorstep. People used to be responsible for their own yard work but nowadays time is limited and the average householder is dependent on mobile services to keep up with the Jones. The benefit of a lawn care franchise is the training and expectation. Lawn care can easily be learned and adapted, making the skill set easily understood. This would also be an easily employable job, if the franchisee wanted to pay for the service to be preformed. The downfall is saturated competition. Not only is the franchise rivaling local businesses but also working against homeowners who can perform the job themselves. However, some lawn care mobile services offer much more than the average garden clean up and provide professional service, as well as a variety of tasks. On some levels mobile services could
be considered extremely convenient. You create your own schedule, you are dependent on yourself, no massive clean up or service bills or giant staff to cater. However, it can be demanding on the other side of the business. Sometimes a franchisee may have to adhere to the many demands of the customers. The job may become monotonous and they may come to discover they do not have passion for the field. It’s important for those interested in mobile franchising to recognize their strengths and weaknesses. It’s a very independently run business that would take a strong discipline to be run successfully. Some franchise offer more than just services and provide products at customers doorsteps. This process can create more profit and franchisees should see if this is an option when researching different mobile businesses. The world is always changing and consumers can be fickle, but they know what they want. The mobile franchise was birthed by the direct demands of the
changing economy. For those that would truly like to be their own boss, a mobile business should be considered. Plus, it’s no longer limited to mail delivery, it can be a pet groomer, or computer whiz or hairstylist. Think of a business and it can likely become mobile; it just depends on whether or not you want to be behind the wheel. ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
Look out for our next special feature:
CHILDREN’S PRODUCTS FRANCHISING Franchising USA
M O B I L E FR A NCH ISI NG FE AT U R E
Page 29
ex per t advice
Chad Altier, CEO & Co-Founder, iDropped
Three Ways to Stand Out Among Competition
can pack a major punch against their competition when solid systems are in place and executed properly. No matter your decision, it’s important to select a franchise that best aligns with your goals as an entrepreneur.
Chad Altier
With thousands of franchising options available, it’s common for there to be similar, competing concepts within any given industry. When considering a franchise in which to invest, don’t give in to a big fish just because they’re taking up the most space in the pond. The little fish
Franchising USA
If you decide to go with one of the smaller players, you’ll need to determine how to drive awareness to your business and positively stand out amongst the competition. This can be done by aligning yourself with a brand willing to support you from the start, adding value to your product or service, and focusing on customer service.
Pick a Brand That Will Support You As a franchisee, it’s important to select a brand capable of supporting you from the onset – regardless of its size. While you’re your own boss, one major benefit of joining a franchise system is having the franchisor there to fall back on for guidance and support. A good franchisor should offer ongoing training and help you overcome any obstacles encountered in building your franchise.
Training programs and support systems are important to consider when selecting a franchise as they are crucial to your business success, especially if you’re one of the smaller players in an industry. The level of assistance varies with each franchisor, so think about your quintessential level of support, and ensure it matches what your franchisor can provide.
Add Value to Your Product or Service Once your franchise is open, hit the ground running and try not to focus on the competitive nature of the business. Did a larger competitor come to town? Don’t worry – make what you do even better and find your niche in the community. Do this by creating new customers rather than stealing from the competition. Advertising, networking, referrals, and strategic alliances are all ways to drive new customers to your business. Be at the forefront of market growth. You are in control of your business and your success. Let your competitors worry about catching up with you.
“The little fish can pack a major punch against their competition when solid systems are in place and executed properly.”
In today’s business environment, the ability to add value to your product or service is an absolute necessity, as it’s important to your customer. Don’t just replicate what your competitor is doing and cut the price. Instead, add value. This can be done through quality, design, speed and high standards of excellence. The problem with only selling for price is that it’ll prevent you from having any degree of high margin sales, and that’s where your profitability, long term growth and success live. Rather than arguing how your product or service is different, add value to it and showcase that value to your customers. Adding value requires creativity, innovation and a willingness to out-work the competition. Selling the way you always have will allow the price to rule, and you’ll probably find your competitor passing you up by adding value. Maybe you and your competitor offer the same value for your product or service, but they’re not marketing their value. Take advantage of that absence and own it in yours. Even though it’s not different, if you’re the one advertising that value, customers will notice. Go above and
beyond customer expectations, and stand behind everything you do for them. It’ll pay off for you and your business.
Focus on Customer Service For smaller players in a big industry, customer service will make or break your business. It needs to live at the top of your business’ priority list, and every sale or service must be tailored to the customer’s liking. It’s difficult to cater to every person’s individual needs, but knowing your business’ niche market will allow for success. Know who your customer is, and always strive to exceed their expectations. Specifically in the service industry, customer service is of the utmost importance. Instead of selling a product, the “sale” is the service performed. As a service provider, your customers will expect you to have the solution to their problem. Thus, it’s important to equip your employees with the knowledge to provide clear, helpful answers to customers.
When someone performing a service does an inadequate job, the issue is likely his or her skills or abilities. Service providers should be able to separate themselves from the work they do so as to properly and fairly address problems and concerns. Getting into an industry where there is established competition is nothing to sweat. Choosing to invest in a franchise simply because it’s the biggest player doesn’t guarantee you’ll be successful. Do your research, and consider your options and what’s important to you. Once you get your business up and running, focus on making it stand out as best you can. Chad Altier is CEO and co-founder of iDropped. A mobile device repair company, iDropped repairs damaged iPhones, iPads, iPods, Galaxy devices and laptop computers. As technology advances, the company strives to adapt and continually learn device repairs. iDropped is committed to providing the best service, quality products and repairs and offers a one year guarantee on all parts and labor. iDropped was founded in 2012 and is currently seeking franchise partners to develop in the Northeast part of the U.S. www.idropped.com
Franchising USA
ex per t advice
Page 31
prof ile
milliCa re
From Employee to Owner: Rising Through the Ranks of milliCare
Commercial carpet and textile cleaning franchise milliCare is known for fueling the entrepreneurial spirit. Franchise owner Chad Stout is a phenomenal example of the kind of success a driven individual can achieve by investing in the milliCare franchise. Known for its superb support structure, milliCare consistently provides employees with the tools and opportunities needed to succeed.
“Stout is an avid proponent of franchise ownership…Investing in a milliCare franchise ownership, combined with hard work and determination, has led to Stout’s ultimate success.” Franchising USA
Stout worked in various franchises throughout high school and college, thus he was familiar with the environment and had the ideal background to excel in a franchise development position. When Stout was presented with the opportunity to work on a franchise expansion team with an area developer for a food franchise in Milwaukee, Wisconsin, he jumped at
the opportunity. Stout and his team would work to get new franchise locations up and running – a skill that would later prove very useful later on in his business ownership endeavors. Stout worked with franchise owners to ensure their location was properly staffed and could operate efficiently, before moving on to the next franchise location opening. While working at this franchise, Stout met the man who would become his future business partner at milliCare. Upon learning about milliCare’s premium services and excellent customer care, Stout decided to join the milliCare by Facility Services Inc. (FSI) team, working part time as a technician. Once Stout had learned the ins and outs of commercial carpet and textile care, Stout decided to leave his position and pursue milliCare full time and assist in opening a new milliCare office in Minneapolis, Minnesota. After taking some time to familiarize himself with the industry, Stout felt he was ready for more responsibility at milliCare by FSI; the opportunity soon came in the form of company expansion. Stout realized there was room for growth in a nearby market and formulated a business plan for another office to open in June 2001. Over the next 15 years, business partners came and went at milliCare by FSI, but Stout remained steadfast and hardworking. In 2009, milliCare by FSI underwent a major re-structuring, and by 2011, Stout had made the momentous decision to buy ownership of the company. The next major development in Stout’s story came about in October of 2015. He was approached by a milliCare franchise owner on the west coast of the United States with a buyout opportunity. After learning more about the potential growth in that market, Stout decided to expand his company to include the newly formed milliCare by Facility Services Nevada Inc., which has offices in San Diego, Los Angeles and Las Vegas. Stout has faced a plethora of challenges on his road to franchise ownership, the biggest of which was staff selection. Stout has worked hard to put together the
optimal team to keep his company running smoothly and efficiently. While he is now satisfied with the team he has assembled, getting to this point has been no easy task. Stout had to sift through numerous candidates to find the ones that best fit his specific organization. Stout emphatically says that his success today would not have been possible without his top-of-the-line team. They constantly work hard and have been a vital component in milliCare by FSI’s continued success. In regards to his experience with milliCare, Stout could not be more satisfied. “I’m very impressed by the network milliCare has in place. From the West Coast to East Coast, it’s amazing how many business owners I’ve gotten to know,” says Stout. “If you’re trying to solve a problem, or even if you’re just looking for better ways to serve your clients, you can tap into that network. It’s by far my favorite part of working with milliCare.” Today, milliCare by FSI is run by Chad Stout and his partner Melissa Turck, a minority, female owner. Stout has 17 employees on the West Coast and 30 employees in the Midwest. He continuously strives to ensure each location is performing at its peak. The Minneapolis location has won several milliCare awards over the years, such as the Birch Gazelle Award, which is presented in recognition of more than 20 percent company growth for four consecutive years.
Stout’s success comes from hard work and industry involvement. In conjunction with his work at milliCare, Stout is heavily involved in the International Facility Management Association (IFMA) and has been on the Minneapolis St. Paul’s chapter board of directors for almost 15 years. He has also received their President’s Award, the highest available award, twice over the last fifteen years. One of Stout’s most notable attributes is his ambition. He is not satisfied with merely being a tremendously successful business owner, he wants to be an active member of his community as well. Both the Milwaukee and the Minneapolis milliCare by FSI offices offer support for the local Ronald McDonald Houses. For the past five years, milliCare by FSI has aided children in need by cleaning the floors at the Ronald McDonald Houses at no cost. Stout is an avid proponent of franchise ownership. Franchisees enjoy the independence of business ownership, while working in a turnkey environment. Owners are able to focus on company growth and client satisfaction, rather than getting tied up in the minutia of developing and maintaining a business structure. Investing in a milliCare franchise ownership, combined with hard work and determination, has led to Stout’s ultimate success. www.millicare.com
Franchising USA
prof ile
Page 33
ex per t advice
Paul Johnson, Co-founder, Redirect Health
Solving “P There is hope! After years of an economy that bankrupted businesses and stole jobs from hard-working Americans, our country seems to be turning a corner. Business and franchise owners are at the heart of this turnaround, putting people back to work, stimulating the economy and providing valuable products and services. You would think you should be encouraged to keep growing, to continue hiring, to do what you do best. Healthy growth of business is our country’s best possible stimulus package, and you’re the one staying up nights worried about making payroll, giving people an opportunity to earn a wage and take care of their families. Unfortunately, doing business in the U.S. has never been harder. Instead of focusing on your company, you’re wasting time navigating government regulations like taxes, complex reporting forms, wages, zoning and countless others. All of these regulations have stymied the growth of businesses across all sectors – and that’s no good for the economy or for you.
“By law, you’re now obligated to offer health benefits – a staggering expense. It all adds up to a huge problem, throwing a wrench in running and growing a franchise.” Franchising USA
The latest rule relates to healthcare. Obamacare has put a huge burden on employers nationwide, and meanwhile insurance costs have continued to skyrocket. The new healthcare law threatens the bottom line in a very real way. Many businesses simply can’t cough
g the Obamacare Problem” up the money insurers are demanding. The issue is especially complicated for franchise businesses, which often employ support-level and seasonal workers who can’t afford traditional health insurance. The issue becomes even more problematic for franchise owners who want to grow, because purchasing another unit often means inheriting more employees. By law, you’re now obligated to offer health benefits – a staggering expense. It all adds up to a huge problem, throwing a wrench in running and growing a franchise. As founders of several businesses including Redirect Health, my partner, Dr. David Berg, and I know this pain. But did you know there’s a smart and simple strategy that could unlock your growth and address the Obamacare problem? You’ve probably been told you must provide costly traditional health insurance in order to comply with the law, but this simply isn’t true. Here’s what Obamacare does require: • IRS Forms 1094 and 1095: All employers must file Forms 1094 and 1095 at tax time with details on each employee’s health coverage. Failing to do so results in a fine of up to $2,400 per year, per employee, with a maximum of $3 million. • Minimum Essential Coverage (MEC): Companies with 50 or more fulltime-equivalent (FTE) employees must provide MEC. For businesses that self-insure, MEC includes 71 specific services – screenings, limited primary care, preventive services, some medications and COBRA. If you don’t offer at least MEC, you will be penalized $2,000 per employee
(excluding the first 30 employees). • Minimum Value Plan (MVP): MVP is difficult to define, but in short, it states the plan you offer your employees must cover at least 60 percent of their health bills after monthly premiums. Companies with 50 or more FTE employees that don’t offer an MVP face a $3,000 fine for each employee who receives a subsidy on the healthcare exchange. Fines for noncompliance are enough to put many companies out of business, but there’s a smart, strategic solution you need to know about: it’s called self-insurance. Large companies have been self-insuring for a long time, but it’s a newer trend with smaller companies. Self-insurance can help all businesses meet Obamacare mandates for considerably less money than traditional insurance, but there’s a specific strategy designed for franchisees with lower-wage and seasonal employees. A broker who specializes in self-insurance for small businesses can build a plan that is smart, inexpensive and provides employees with high-quality healthcare. To implement such a plan:
3. Stop overpaying: Hire an organization to manage the care delivery and logistics process, and eliminate the waste, administration and overpricing rampant in health insurance. Healthcare doesn’t have to be a hindrance for your business. Traditional insurance premiums will probably continue their uptick, but self-insurance transforms healthcare from a business issue to a competitive advantage and recruiting tool. Most importantly, a well-designed selfinsurance plan will allow you to focus on what you do best: running your company, putting good people to work, and taking care of those people. To learn more about Obamacare requirements and how you can turn your company’s healthcare plan into a competitive advantage, watch this video at redirecthealth.com/zerocostobamacare. Paul Johnson is CEO of Redirect Health, which helps employers and their brokers build affordable, ACA-compliant healthcare plans using a self-insurance model. www.redirecthealth.com
1. Offer the care most employees need: This healthcare goes beyond MEC and includes the routine services most people use, most of the time – primary care and injury care, rehabilitation (including chiropractic), labs, immunizations, generic medications and preventive services. 2. Purchase stop-loss insurance: This will cover the most expensive healthcare – hospitalization and specialist care – and will ensure you meet MVP requirements.
Paul Johnson
Franchising USA
ex per t advice
Page 35
hav e your say
Steve Sanner, President, Indiana Lube Group
Building a Successful Service Franchise One Question at a Time
Building a franchise business can be difficult —particularly because many early decisions can affect long-term growth when it comes to employee retention, sales and instilling a sustainable culture. However, evaluating the current franchise network and leadership of the company you’d like to franchise are great first steps in developing and growing a successful franchise business. When my partner and I opened our first Jiffy Lube franchise in 1985, we never imagined how quickly we’d be able to grow our business. Through strategic acquisitions, generous vendor support and consistently refining and reflecting, we experienced steady growth throughout the nineties that propelled the business to where it is today. We’ve also remained intimately involved in the day-to-day operations of our forty-seven service centers, known collectively as Indiana Lube Group. Most importantly, we asked ourselves if we would be able to provide our employees the tools to grow in a family- type atmosphere in an industry that all too often sees rapid personnel turnover. At Indiana Lube Group, we want our employees to feel passionate about the work they do every day. We want them to work hard to provide the best customer service possible,
Franchising USA
“As someone with an entrepreneurial spirit, I was inspired by Jiffy Lube from the get-go. The company gave us freedom and flexibility to build a business from the ground up and make our own decisions.” while having fun and continually learning on the job. And, we believe our employees’ passion translates into tangible success. Over the past thirty years, Indiana Lube Group has remained in the top quartile across all Jiffy Lube International franchises. With a focus on investing in the growth of our employees and increasing service programs, we are committed to winning lifetime customers through excellent customer service and offering an umbrella of services at our service center locations. Our approach is anchored by two pillars that helped to guide us when we started our business in 1985 and continue to guide us today as we look to grow and succeed as franchise owners.
The backend As someone with an entrepreneurial spirit, I was inspired by Jiffy Lube from the get-go. The company gave us freedom and flexibility to build a business from the ground up and make our own decisions. As opposed to other franchise organizations, Jiffy Lube allowed us to buy our own property, build our own buildings and negotiate with our choice of suppliers. At the same time, Jiffy Lube offered support and systematic operations that were unparalleled within the industry. I urge individuals who are considering
franchise ownership to carefully evaluate the brand’s current franchise operations as well as the service or product offering. How tried and true is the system? What differentiates the franchisor’s system from its competitors? What value can they provide to you that will justify the cost of the franchise? Once you have this insight, it’s that much easier to make a smart decision on a franchisor that fits the business you’re aiming to run.
The heart of it all Growing up with parents who were teachers helped me to recognize the value in helping others achieve personal and professional goals. This was an important consideration for me as I set out to become a franchise owner. Supporting employees personally and professionally was also fundamental to Jiffy Lube’s founder, Jim Hindman, and I found his outlook to be contagious as I considered what type of company culture I wanted to foster. At Indiana Lube Group we pride ourselves in providing all of our employees with ongoing professional development opportunities, along with supporting them in their personal endeavors. For example, Indiana Lube Group offers a program called Growing People Through Work, a series of sessions in which our Chief of
Operations and I meet with employees to discuss various topics, all geared towards helping employees develop a positive, fulfilled attitude. The program includes guidance on financial literacy and information around healthy eating, such as how to read nutritional labels. We also promote goal setting—it’s our goal to challenge employees to be the best they can be every day. It’s been my experience that employees who are actively engaged in and take advantage of these programs are best able to offer exceptional service to our customers. To offer additional support to Indiana Lube Group employees, we have set up a monetary fund to help employees in their times of need. Sometimes this is in the form of an interest-free loan; sometimes it’s just a gift in recognition of their loyalty while going through a difficult time. Team members are eligible to apply for a used vehicle in this program as well. Simple payroll deductions are used over the course of a year to fully pay off the vehicle—permitting the team member to have reliable transportation and save more of their hard earned money as investment in their future.
When looking for a franchisor that will promote an enriching culture, try to uncover the areas of the business they are most passionate about, and gauge their attitude towards personal and professional development programs for employees. Passion and enthusiasm for developing a strong culture are what you want to see in your franchisor. Before you commit to a lifetime of paying someone for their expertise to build, guide, control and motivate an entire franchise system, you need to be confident that the leadership team is committed to you and your employees’ success.
What it comes down to After evaluating your potential franchisor, there are questions to ask yourself that can help pave your way to a thriving franchise business. Here’s my question checklist: • Do I fully understand the strengths, weaknesses, opportunities and threats facing both the industry and the specific franchise that I’ve chosen? • Am I confident in my belief that I will overcome the obstacles that will be thrown my way?
• How can continue to fuel that passion? Am I passionate in my belief that this business fills a valuable need for consumers? • Are the financial elements including conservative estimates on everything from initial funding, to operational cash flow needs to grow funding well-thought out? Keeping these questions and financial components in mind can help develop a strong foundation for growth. While this process may seem front-loaded, you’ll thank yourself later for remaining vigilant during the initial stages of your business. A sustainable culture and long term sales growth relies on your understanding of the franchisor’s offering, leadership and passion for you, your employees and most importantly, your customers. Steve Sanner is President of Indiana Lube Group, a group that independently owns and operates 47 Jiffy Lube stores throughout Indiana. Steve was the recipient of Jiffy Lube’s 2016 Franchisee of the Year award. www.jiffylube.com
Franchising USA
hav e your say
Page 37
ex per t advice
Henry Hutcheson, President of Family Business USA
Focus on the Family and the Business I am often asked what is more important in a family business, the family or the business. My first instinct is to explain that this is not really the proper question as it assumes that you can only have success in one area and not both. While sometimes difficult to achieve, you can have family harmony and a successful business.
Henry Hutcheson
Franchising USA
One place the question often arises is when the family squabbles have become so intense or so intractable that someone declares we should all throw in the
towel and sell the business. Sometimes it comes simply because there is no more energy to deal with the issues. Not to be misunderstood, there are many family businesses where the smart move is to cash out and move into the business of managing money (although, with the gyrations of the stock market and world economy at the moment, I would not advise anyone to be hasty). I had a client who would regularly threaten to sell the business when he was not having a good day, people were not responding to his bad ideas, or he was simply not being shown the respect he felt he deserved. What he could not see was that he was the problem. The company
“While sometimes difficult to achieve, you can have family harmony and a successful business.” had grown beyond his capabilities. Family business owners are prone to falling into this trap: it’s my business, so I can get away with pretending to be the expert in various areas. “And if anyone wants to question me they can look for another job”, he would say. What he did not realize was that the other family members had actually come to realize that if they could not get him to stop meddling and hindering progress, then unfortunately the best answer would be to sell the business. The issue also occurs when the family does not want to discuss or face obvious issues for fear of hurting a family member’s feelings. Compensation is out of line, performance or contribution to the company is not what it should be, or someone is really not cut out to be doing their job. Many family businesses choose to overlook these areas of underperformance for the sake of maintaining “family harmony”. Certainly, as any parent of young children can tell you, you need to pick your battles. Nothing is ever going to be perfect, and don’t try. But when the performance of the business is taking a dip because a family member is not adding value, should you allow it to continue?
“If the family business collapsed as a direct result of the involvement, or lack of involvement, of a family member then the only way back to harmony is simple forgiveness.”
However, the more common situation is not when the company is in trouble but when it is simply not reaching its potential. Everyone is getting paid, has plenty of vacation, and the business is making due with 3% net profit. Because everyone is “ok”, this environment makes it more challenging to instigate the conversation with that family member whose contribution is holding the business hostage. So answering the question is not as easy as it might seem. Looking at this in a more direct and binary fashion, what if the business failed and the family succeeded?
What we mean by business failing is that it lost much of its value. If the family business collapsed as a direct result of the involvement, or lack of involvement, of a family member then the only way back to harmony is simple forgiveness. You can’t give the business another try, it is gone. On the other hand, what would happen if the business succeeded and the family failed? We all made our money, but no one shares Thanksgiving dinner together. While no one is happy about this, the opportunity still exists every day to make things right. What we know for a fact is that the most successful businesses are the ones that are run as businesses. However, we also know is that those family businesses that have a high degree of trust, and practice open and honest communication, are the highest performing of all businesses. When it comes to family businesses the whole can be greater than the sum of the parts. Henry Hutcheson is president of Family Business USA and specializes in helping family and privately held businesses successfully manage transition, maintain harmony, and improve operations. He is a popular speaker at professional, university and corporate-sponsored events, and is author of “Dirty Little Secrets of Family Business.” www.familybusinessusa.com
Franchising USA
ex per t advice
Page 39
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
12 Steps for Job Addicts The first step is admitting you have a problem. For many years I have seen people for whom I have great respect follow a 12 step program to gain control over a dependency they had. Theirs was a chemical or physiological dependency, for many of our candidates their dependency is on a job. They don’t feel comfortable taking control over their earnings and starting a business using the same skills that they feel make them valuable to a potential employer. First let me say that nothing in this article is meant to slight the efforts and accomplishments of those that follow the
Franchising USA
well-known 12 step addiction program. I have huge respect for anyone that pursues living a better and healthier life. All I want to do here is look at the idea of dependency and how those that have trouble breaking away from being dependent on a job might do so. Let’s go back to that first step, admitting you have a problem. For many it is hard to see why a job may not be in their best interest. We do not live in the business environment of our Grandparents prime years any longer. Downsizings are too common to bother publishing in newspapers any longer, jobs are not guaranteed and executives often have a lot of employer entries as well as pay gaps on their resumes. For older professionals the pay gaps increase and subsequent jobs often
pay less as employers want younger/ cheaper employees.
Where is the problem? A seasoned professional will, best case, maintain a paycheck in trade for time away from their family to build a business owned by somebody else. Time away from family often increases in direct proportion to pay and title. Nobody’s child ever said “Dad, I wish you had worked more”. The owners or shareholders of the company get all the benefits of their employee’s efforts. And, yes, sometimes the owner’s children will inherit the company you build. The owners go into the future building their portfolio, the employee drains their 401K to try to get through retirement.
BE THE BOSS OWN YOUR OWN FRANCHISE
Learn how at the West Coast Franchise Expo!
Engage with hundreds of proven franchise brands
Learn from over 60 free seminars & 8 in-depth workshops
Start planning for business ownership
DENVER, CO - COLORADO CONVENTION CENTER - OCTOBER 6-8, 2016
REGISTER TODAY FOR FREE!
Visit www.WCFExpo.com U S E P R O M O C O D E : F R U S A J
Sponsored by:
ex per t advice
George Knauf, Senior Franchise Business Advisor, FranChoice
“For many it is hard to see why a job may not be in their best interest. We do not live in the business environment of our Grandparents prime years any longer.” Second Step is reaching out to a higher power The really good news is that there are people out there who have taken these steps before you and know the path to finding your sanity. “Hi, my name is George and I used to be a job addict.” Much like any good change agent, those that help you find your way should not be focused on selling you books, classes, personality tests or anything else. There are experts you can reach out to for free assistance, I am one but there are countless others.
The third Step is to make the decision to be open with, and reliant on, your expert advisor The process is typically simple and straight forward, your expert advisor can guide you through all the twists and turns. If you pick the right advisor you will have instant access to decades of experience that you would have a hard time replacing at any cost. While you bring experience in your area of expertise, franchising is a very unique world and your adviser can save you time, money and trouble.
Step four is to do a personal inventory We call this your model, it is a complete summary of what would make you a good fit for a franchise system.
Steps five, six and seven involve looking how that personal inventory fits as a possible business owner, where being an employee was not a good fit and what might result from making this change We often here candidates say “nobody
Franchising USA
ever asked me that before but here is what is important to me…”. This personal inventory is critical to future success, it is a living document and we update them with candidates that come back for more business acquisitions in the future.
Step eight is to discuss this possible path with your spouse, step nine is to involve them in the process Your most important partner may be your spouse, for this reason you will want to bring them into the conversation so that they can be involved and feel part of the process. It can be very difficult for candidates who skip these two steps then find their spouse has questions, fears or things they want to contribute. Spouses always get involved, the only question is when and how smoothly that goes. Waiting until the end of the process rarely safes time, effort or frustration.
Step ten is to continue to fine tune your personal inventory as you go through the franchise investigation process
George Knauf
default to your job addiction. If you would be a valuable employee for a company,
then you must be equally as valuable as an owner of your own business!
Step twelve is to grow as a business owner and help those that are job addicts to make the change, find independence and control over their income streams This is where your experience acts as the example they can relate to and you refer
them to an expert like me. You will find
that friends and family mention when they talk to you that they have always wanted
to own their own business too, feel free to help them find their own success!
There are the 12 steps for jobs addicts.
What will your success story be? Let’s go
Since employees usually focus more on what keeps their employer happy than where they will find happiness themselves it is not uncommon for us to find part of their model that we need to update as we go through the investigation and they discover options for how and owner can work that they had not considered previously.
find out!
Step eleven is to give ongoing thought and contemplation to life as an employee and how that could change for you and your family as a business owner.
into business for themselves in order
Remembering your “Why” is important as you consider this change so that you don’t
George 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 to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution. Contact the Franchising USA Expert George’s Hotline 703-424-2980. www.FranGuide.com
be available in all states. state, and only if we provide you with an appropriate franchise disclosure document. Franchises may not in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that This advertisement does not constitute an offer of a franchise. A franchise offering can be made by us only
Your Golden Opportunity Your Golden Opportunity
advertisement does not constitutean anoffer offerof ofaafranchise. franchise. A A franchise franchise offering ThisThis advertisement does not constitute offering can canbe bemade madeby byususonly only a state if we first registered, excluded,exempted exemptedor orotherwise otherwise qualified qualified to in ainstate if we areare first registered, excluded, to offer offer franchises franchisesininthat that state, only if we provide you withananappropriate appropriatefranchise franchise disclosure disclosure document. state, andand only if we provide you with document. Franchises Franchisesmay maynot not available in all states. be be available in all states.
Your Golden Opportunity midasfranchise.com midasfranchise.com 800-365-0007 800-365-0007
ex per t advice
Matthew Jonas, President, TopFire Media
Hook the Big One, Angler
You don’t need a brand new marketing plan to net a trophy fish, just learn from the professionals As the summer wears on, franchisors and franchisees alike head to the waterfront to cast their lines into the water, hoping to hook the “big fish.” It doesn’t take a great leap of the imagination to see how this same scenario applies to marketing and selling your franchise. Franchising USA
Think about a fisherman camped out on the shore, watching a modest bass boat crawl its way around a bend of the lakeshore. The boat pilot beams ear to ear under a sky blue, lure-hooked bucket hat as she aims her craft for the dock and her berth. Our theoretical shore-bound fisherman can see from his vantage point that the boat pilot has a glistening fourfoot largemouth bass hanging from one of the poles (never mind that a true sport angler wouldn’t haul their fish this way). The shore-bound fisherman may look at that scene and think catching that big one was easy, that all it took was a fancy boat and an easy hour out on the water. But they, like a franchisor reading about a competitor landing a large, multi-unit deal, may not understand all of the hard work—and deep marketing dollars—that went into the catch. Franchise marketing is a game of numbers, which means the more money you spend on marketing your franchise offer, the more leads and ultimately sales you’ll make. The formula is more complicated than that, sure, but the underlying principle is sound. But franchise marketing success takes more than just money, and woe unto any franchisor who assumes the almighty dollar is all one needs.
Fish on the line Enacting your marketing plan and running through several, a dozen, a hundred prospects before landing a solid sale is a common experience in the franchise world, and it’s rare that a franchisor catches the big fish right off the dock. That’s not to say it never happens, but just like the world of fishing is unpredictable, it often takes several tries and many iterations of your marketing plan before a franchisor is able to sign their first franchisee, let alone the bank-breaking multi-unit deal. One of the most important factors to consider in casting your net for prospects is whether the franchisee will be successful or not. A prospect who
“The biggest thing I tell new franchisors is that they need to be dedicated and have a long-term and flexible marketing plan if they want to land the big fish.” does not have the skill set, work ethic or resources needed to grow and maintain their business will have little chance of success, and granting a franchise to such a candidate not only sets them up for failure, but over time, the franchise system as well. That’s why constantly refining your marketing plan to target prospects with a particular background or specific skills is so important.
A long day on the water I tell new franchisors that they should settle in for the long fight when it comes to marketing—ranging anywhere from six months to a year or more before they sign a franchisee and start to recoup their spend. Beyond your killer marketing plan, it’s a game of numbers and you have to spend time carefully constructing, adjusting and then feeding your lead funnel. We talk about a rate of about 50 leads per sale, and though there are outliers and constant fluctuation, the lesson is that it will require time. Not everyone is right for franchising. The best franchisors are often entrepreneurs who possess exceptional communication skills, who are also great salespeople. That kind of thing takes endurance. But that’s not all.
Endurance, patience, focus and dedication Finally, after those long hours catching fish that didn’t fit the mold or that snapped the line and got away, the shore-bound fisher may ask the boat pilot: was it worth it? Is the large bass going to feed the family? Is the large bass going to justify the tall tale she’ll tell bellied up to the bar tonight? Just like asking a franchisor who just nabbed the big deal, yes, the boat pilot replies, it was.
The biggest thing I tell new franchisors is that they need to be dedicated and have a long-term and flexible marketing plan if they want to land the big fish. Through the disappointing “almosts” to the long, tiresome hours they’ll put in to satisfy a prospect’s information requests, the shorebound franchisor should have the stomach to stay in the fight. Even though the bass boat franchisor might make it look easy, it won’t be. In the franchise marketing world, a primary decider of your success will be these core, personal qualities: endurance, patience, focus, dedication. These are things you can develop, but ultimately, not things you can buy. A marketing consultant like me can help, but it all comes down to you in the end. Is your marketing plan ready? Are you ready? Matthew Jonas is the president of TopFire Media, an award winning, integrated public relations and digital marketing agency specializing in franchise marketing and consumer branding. Together with the leaders of iFranchise Group and Franchise Dynamics, Matthew established TopFire Media to provide a strategic and synchronized method for digital marketing in the franchise industry. As a digital marketing strategist with over a decade of in-depth experience in SEO and PPC, social media publishing, conversion-based marketing, inbound marketing, sales management, and online lead generation, Matthew has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com
Franchising USA
ex per t advice
Page 45
Donâ&#x20AC;&#x2122;t miss an issue
Get the App
www.franchisingusamagazine.com Franchising USA
Page 47
Veterans in Franchising july 2016
www.franchisingusamagazine.com
academy leadership
changed my life U.S. Marine Veteran Wins 7-ElevenÂŽ Franchise
salute the troops
Franchising USA
SAME DRIVE. DIFFERENT BATTLEFIELD. TAKE THE NEXT STEP > VETFRAN.COM OFFERING FINANCIAL SUPPORT, TRAINING & MENTORSHIP Veterans interested in franchising can take their skills learned in the military to successfully own and develop small businesses. Learn more and support veterans in franchising at www.vetfran.com.
• 650 franchise companies participating • 151,000 veterans and their spouses found careers in the franchise industry • 5,100 veteran franchise owners
Page 49
V eterans in F ranchisin g S upplement july 2 0 1 6 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 On the Cover
Franchisee in Action
Jean cetoute - 7-elevenÂŽ
52 Academy Leadership
Cover Story
62 sweetFrog Frozen Yogurt
50 U.S. Marine Veteran Wins 7-Eleven Franchise
Franchisor in Depth 54 REDRHINO Flooring 58 CruiseOne / Dream Vacations
Franchising USA
Veterans in Franchising
C over S tor y - 7-Eleven
U.S. Marine Corps veteran Jean Cetoute will be able to franchise any 7-Eleven store in the United States after winning the OPERATION: Take Command competition. Franchising USA
Cetoute, who currently lives in North Carolina, with his wife Tiegst Cetoute will receive a waiver of the franchise fee, which is valued at up to $190,000. He hopes to franchise a store near his family in New York state. Cetoute was one of three finalists flown in to interview with the company’s president and CEO, Joe DePinto, at the 7-Eleven home office in Texas. “I want to congratulate Jean, and thank all the veterans who entered. We are
grateful for all our military veterans who selflessly give so much for our country,” DePinto said. “OPERATION: Take Command allows 7-Eleven to recognize and salute them. 7-Eleven is also a winner, as is any company that chooses to work alongside these men and women who have demonstrated the leadership skills, team approach and core values to succeed.” Cetoute immigrated from Haiti and served in the U.S. Marines for 20 years, exiting as the Chief of Utilities. His military
“Winning a 7-Eleven franchise is a tremendous opportunity for my family. I get to have a second career and be a part of an internationally known brand. I spent 20 years in the military, and now, with 7-Eleven, I can become a contributing member of a civilian community.” - Jean Cetoute we need to keep 7-Eleven a leading franchisor. That’s why we’ve offered special military incentives over the years. 7-Eleven has been recognized for its veteran-hiring practices and support of military families and was named among Top Military Friendly® Employers for 2016 by Victory Media and its G.I. Jobs magazine. The retailer also has supported military-assistance organizations including Hire Heroes USA, the USO, Reserve Aid, Warrior Gateway and Operation Mend. The company has military veterans serving in every level from top management to field staff to store sales associates. Nineteen of the veterans that have franchised with 7-Eleven own more than one store, and one currently operates five locations. background also includes two deployments to Okinawa, Japan he retired in 2014. Since retiring, he has been working as an independent real estate agent. He has a business degree from the University of Maryland. Jean Cetoute knows that good character and humility can achieve great things. “Winning a 7-Eleven franchise is a tremendous opportunity for my family,” Cetoute said. “I get to have a second career and be a part of an internationally known
brand. I spent 20 years in the military, and now, with 7-Eleven, I can become a contributing member of a civilian community.” Last year, Salil Gautam, a U.S. Army veteran from Chesapeake, was one of the three first-place winners. He now operates the 7-Eleven in the Campostella neighborhood of Norfolk. Veterans have proven themselves as focused, hardworking and loyal franchise partners. They have the skills and attitudes
7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Irving, Texas, 7-Eleven® operates, franchises and licenses more than 10,700 7-Eleven stores in North America. Globally, approximately 59,500 7 Eleven stores serve customers in 17 countries. Find out more online at www.7-Eleven.com. If you’re a military veteran and are interested in learning more about what it’s like to franchise with the world’s first convenience store, www.franchise.7-Eleven.com
Franchising USA
Veterans in Franchising
Page 51
Veterans in Franchising
Academy Leader ship
Academy Leaders Changed My Life As a West Point graduate (USMA 1978), “Leadership” was always a subject near and dear to my heart. After service as a Captain in the Army, my primary profession was as a retained executive recruiter. My job was to build leadership teams by finding leaders that made an immediate positive impact on a client’s organization. In the civilian world I saw leadership explained and extolled in a myriad of ways. Some courses came close, others fell deficient. That was until I attended the Academy Leadership’s three-day “Leadership Boot Camp Experience” (now evolved into a new course --- the Leadership Excellence Course) in August of 2009. I was so impressed with the structure and message of the course, built around the Navy’s definition of Leadership- “Know yourself, Know your People, Know your Stuff”, that I knew I had to a part of this team.
Franchising USA
ship After the course, I met with Dennis Haley, (USNA 1967) and asked if he needed a new franchisee in Chicago, and if so, I was his man. The deal was done and I have been part of this growing company ever since. From the start I believed that that my Executive Search practice would always be my bread and butter. That couldn’t have been father from the truth. With diligence, I offered this life changing course to business clients and through our affiliation with the Project Management Institute which has awarded the course a very sought after 36 Project Development Units (PDUs). I found a great need and even a thirst for “Leadership” in all endeavors--public, private, and not-for profit. Some clients found a way to pay for the course even though it was not budgeted. That need is as true today as it’s ever been. The potential with Academy Leadership is limitless. My Academy Leadership business has grown six-fold since my first full year in 2010. I have established major Clients such as Abbott Laboratories and Siemens Energy but also have a core of smaller emerging companies that
“The Advanced Leadership course re-energized me to fight the status quo and do the right things at work...and to encourage others to do the same…This course has take-away tools, post-course work, and on-going coaching and support that help you implement what you learned.” - Tammy Meyer, Advanced Leadership graduate understand “investing” in leadership training is the difference maker and the “margin of excellence” that enables them to compete in the global and local market. They know that “Leaders” get results. I also have a cadre of faithful graduates that have followed me on to complete “The Advanced Leadership Course”. Facilitating this course has been personally and professionally rewarding. Knowing that I have been able to motivate and inspire new generation of “Leaders” and are making a real difference in my client companies is something I will always cherish. The camaraderie of the veterans involved in Academy Leadership is special as well. I have never felt so much mutual respect, so much mutual support and complete honesty and integrity from everyone associated with this company. We are truly brothers and sisters in arms committed to changing individuals, organizations, and perhaps the world --- one “leader” at a time.
Jim Nalepa
The day I joined Academy Leadership changed my life and met those aspirations I have had regarding promoting leadership development since the day I graduated from West Point. For more information about the Academy Leadership franchise please visit www.veteransbusinessservices.us/ product-item/academy-leadership/
“I have been managing at one level or another for 20 years, and thought I knew all I needed to know to lead a team. I learned that just because my department is successful, that doesn’t mean that I am as good a leader as I can be…I am very grateful that I have experienced this course and have been reminded of what it means to be a leader.” - Gary P. Pecor, Advanced Leadership graduate Franchising USA
Veterans in Franchising
Page 53
Veterans in Franchising
R EDR H I N O
REDRHINO:
The Epoxy Flooring Co What makes a successful franchisee? What are you looking for in a franchisee? REDRHINO has high expectations. If you are not somebody who is used to high expectations, then you probably wonâ&#x20AC;&#x2122;t be too comfortable. We ask a lot of our franchisees, and want someone who is fully committed to the model, as well as the brand.
Michael D. Kenealy President and CEO
Franchising USA
The franchisee has to have the ability to consistently follow a program day in and day out. We have a very specific process for sales and national management, and
need each partner to follow this process in order to be successful. We are also looking for individuals who can be simultaneously both intensely competitive and intensely cooperative. The individual has the drive to build a booming business, but is a team-player at the same time by putting the brand first. They can see the big picture and recognize when something will help the brand, and seek opportunities to do so.
What is your biggest challenge in your role as president and CEO? My biggest challenge, my most important challenge is recruiting, training, and
“Our ever-evolving focus on technology has pushed us ahead of our competition for a variety of reasons.”
Why this industry?
:
ompany retaining top talent, whether corporate associates or franchisees. We need the best of the best to reach our goals as an organization, and finding the right people is key. Finally, and maybe I should have addressed this first, it is the ability to surround myself with a great team. In the Corporate office, I am constantly busy with a million tasks day in and day out. I need a team I can depend on to get everything done, but also look for ways to improve what is being done.
How are you able to do that? Well, for franchisees, it’s relatively easy. We have created a business model that
provides for an incredible return on investment. We work to partner with our franchisees and work to ensure their success. This partnership allows them to be successful and get the support they need, and also keeps the corporate office in touch with what is going on across the organization. With corporate associates, it is a bit more difficult. Careers should be “transformative” meaning the associate may start in one position, but sees other things that need to be done and is able to morph into another position. This gives the associate control over their career, and the ability to find their strength within the office. This also makes our corporate associates work well as a team. With no hard lines between positions, it allows everyone to cooperate and work together. At the end of the day, each individual, whether franchisee or associate, are ultimately in control of their professional future. The best that we can do is to create a tapestry that allows their success. We work to improve this tapestry every day.
I found myself stuck in the Corporate world (I was with Perot Systems), and was looking for something more in my career. As I am not a lawyer or accountant or a coder, I asked myself, “What do I do?” I found there was an immense amount of opportunity in this industry, and a low barrier to entry, so I decided to give it a shot. I found that the Return on Investment is extremely high, and began to build a business model that could be easily duplicated. Even though it is a multi-billion-dollar industry, I found that it is very fragmented. With only a few big nationwide players, I realized with organization and drive I could climb my way to the top. This became, and continues to be, my motivation.
Has your strategy evolved over time? I have found the importance of consistent training both in the corporate office, as well as with the franchisees. Without training, the organization as a whole lacks direction and unified knowledge. Having everyone on the same page, and trained in the same way allows for unity and camaraderie between everyone involved. Training also keeps our knowledge up to date, and aware of the most current technological advances in our industry. With the evolution of Social Media and websites like Yelp, we have found that
Franchising USA
Veterans in Franchising
Page 55
Veterans in Franchising
R EDR H I N O
â&#x20AC;&#x153;With the evolution of Social Media and websites like Yelp, we have found that Customer Service is extremely important. We are sure that each and every client walks away from REDRHINO satisfied.â&#x20AC;?
Customer Service is extremely important. We are sure that each and every client walks away from REDRHINO satisfied. As the majority of our business is repeat and referral, having a reputation for putting the customer first helps us retain clients and gain new business. Our first approach to a franchise model was to have multiple in each state. However, we have found a much higher rate of success by onboarding fewer franchisees with larger territories. This keeps our team closer, and shows the franchisees a higher rate of success. This also allows us to be specific in what we want in a franchisee. We are looking for the right people to build our business, and value quality over quantity.
Where do you see your future growth coming from? We have recently moved into polished concrete. With our industrial footprint,
Franchising USA
we are able to move into this area very aggressively. We have partnered with a national provider of polishing equipment and accessories, and have received more training, stronger brand recognition and increased customer service with this partnership. As we grow, nationwide recognition will become very important and we see this as being a major catalyst for future opportunities.
What are some of REDRHINOâ&#x20AC;&#x2122;s strategic advantages? We have built an incredible leadership team to guide the organization around the clock. We have found strong corporate associate and regional partners in our years of being in business, and it has been no accident. We are proud of the people we have with us today and see this as a huge advantage in the industry. REDRHINO believes in hiring character, and training skills. We always focus on the
fit of the associate, knowing we can train them to get the job done. Our focus on a strong team has never wavered, and this is keeping us ahead. Our ever-evolving focus on technology has pushed us ahead of our competition for a variety of reasons. By using programs and recognizing the positive effect of technology in the construction world, we are able to track our sales, keep in touch with our clients and create intensive data reports to see what is working. With this comprehensive reporting we have been able to constantly adjust our strategy in sales, marketing and management to streamline our process and be the best we can. Facebook: www.facebook.com/REDRHI NOTheEpoxyFlooringCompany/?ref=ay mt_homepage_panel Instagram: http://instagram.com/ redrhinofloors
Page 57
The Ultimate Professional Franchise Opportunity An IFG Franchise
provides
you with an
opportunity to earn and aboveaverage return on your working capital, plus: • No Long Hours or Extensive Travel • No Employees • No Inventory or Equipment Get the full story today. Contact us at: 1-800-387-0860 or ifg@interfacefinancial.com
www.interfacefinancial.com/franchise Franchising USA
Veterans in Franchising
Cr uise O ne / D rea m Vacations
Military Veterans Can Begin Next Tour of Duty as Travel Franchise Owner Fifth annual CruiseOne / Dream Vacations “Operation Vetrepreneur: Become Your Own General” contest DEPLOYED on Memorial Day awarding five complimentary franchises
According to the American Council on Education, approximately 1.5 million service members will be transitioning out of the military in the next three to five years and will be seeking employment opportunities.
Owning a home-based franchise provides veterans flexibility to maximize family time while earning a living. For the fifth year in a row, home-based travel franchise CruiseOne / Dream Vacations will be hosting its annual “Operation Vetrepreneur: Become Your Own General” contest, which has given away $250,000 in franchise opportunities to 20 military veterans since inception. Military veterans interested in an adventure with a new career selling all types travel experiences from the comfort of their home can enter the contest through Thursday, Sept. 1, 2016. “Franchising is an appealing career move for military veterans who have been out of service for many years and for those who have recently transitioned because of their leadership skills, the system-based model, ongoing training opportunities and familial atmosphere,” said Tim Courtney, vice president of franchise development and ambassador of veteran affairs for CruiseOne / Dream Vacations. The CruiseOne / Dream Vacations franchise contest is open to former
Franchising USA
members of any of the five branches of the U.S. military (Army, Air Force, Navy, Marine Corps and Coast Guard) who are retired, off active duty and/or honorably discharged prior to the contest start date. To participate, candidates must complete an online entry form by Thursday, Sept. 1, 2016. The form and all contest details can be found at www.OperationVetrepreneur. com or on the CruiseOne / Dream Vacations’ Facebook page, www. Facebook.com/DreamVacationsFranchise. Candidates will participate in three rounds of judging. First, they will participate in a phone interview with a CruiseOne / Dream Vacations franchise development specialist. Semi-finalists will be required to submit a franchise application, business plan, video and resume, all of which will be scored by the CruiseOne / Dream Vacations executive team. Final candidates will be invited to participate in followup phone interviews before winners are selected. Five winners will be notified in September
“Military veterans are such an important member of society that we are honored to have the opportunity to ease their transition to civilian life and make their business dreams become a reality.” - Debbie Fiorino 2016. Each grand prize is valued at $12,700 and includes a complimentary CruiseOne / Dream Vacations franchise with a waived $9,800 initial start-up fee and monthly service fees. The new recruits will report for active duty in November, when they participate in a weeklong franchise training boot camp at the CruiseOne / Dream Vacations’ state-of-the-art world headquarters in Fort Lauderdale, Fla. Winners will be reimbursed up to $500 for their travel and provided with complimentary accommodations during the training program. Once training is completed, winners will be armed with all the tools
and knowledge they need to begin their dream business creating dream vacations. “Military veterans are such an important member of society that we are honored to have the opportunity to ease their transition to civilian life and make their business dreams become a reality,” said Debbie Fiorino, senior vice president of CruiseOne / Dream Vacations. “Plus, they have the option to select and operate as a brand that reflects what they truly want to sell.” A member of the International Franchise Association’s (IFA) VetFran initiative, CruiseOne / Dream Vacations is committed to giving back to the military
Franchising USA
Veterans in Franchising
Page 59
Veterans in Franchising
Cr uise O ne / D rea m Vacations
Franchise Owner Mattie Johnson. “Most importantly, CruiseOne / Dream Vacations honors veterans on a level which changes lives…mine has definitely changed for the better as a 2015 Operation Vetrepreneur honoree.” CruiseOne / Dream Vacations is committed to being “Rich in Diversity” and empowers all owners, agents and employees to reach their highest potential by leveraging their broad range of talent, experiences, personalities, viewpoints and ideas to generate business growth. Military veterans with a passion for travel and entrepreneurism who are interested in opening a CruiseOne / Dream Vacations travel franchise, please visit www. OperationVetrepreneur.com or call 888249-8235.
“Franchising is an appealing career move for military veterans who have been out of service for many years and for those who have recently transitioned because of their leadership skills, the system-based model, ongoing training opportunities and familial atmosphere.” - Tim Courtney
About CruiseOne® / Dream Vacations
community and offers many incentive programs including a 20 percent discount off the franchise fee and additional discounts for hiring former members of the U.S. military or active-duty military spouses as associates. More than 30 percent of the home-based travel franchise system are military veterans or active-duty spouses.
Franchises for Veterans” the past six years and recognition by MSC Cruises in its first-ever Seaside Salute Award. Additional accolades include being named “Top 10 Military Friendly Franchise” by Forbes, “Top Veteran-Friendly Franchise” by Entrepreneur and U.S. Veterans magazines and inclusion on USA Today’s “50 Top Franchises for Military Veterans.”
In operation since 1992, the homebased travel franchise CruiseOne® is ranked in the top three percent of all franchises worldwide and is a member of the International Franchise Association; Dream Vacations was launched in April 2016. As part of World Travel Holdings, CruiseOne / Dream Vacations franchisees are able to offer their customers the lowest possible pricing on vacations with its 100 percent “Best Price and Satisfaction Guarantee.” CruiseOne has received partner of the year, a top-ranking status, by all the major cruise lines including Norwegian Cruise Line®, Royal Caribbean International®, Celebrity Cruises® and Carnival® Cruise Lines.
Consistently recognized by leading industry publications as a military-friendly franchise, CruiseOne / Dream Vacations’ accolades include a number one ranking the past two years in a row by Military Times in its “Best for Vets: Franchises” list, inclusion on G.I. Jobs annual “Hot
“I love being a travel specialist with CruiseOne / Dream Vacations because of their strong commitment to the travel industry, and their never ending support to the agents, regardless if it is your first day or you have been with them for a decade,” said Army Veteran and
For more information on CruiseOne / Dream Vacations, visit www.DreamVacationsFranchise.com. Like CruiseOne / Dream Vacations on Facebook at www.facebook.com/ DreamVacationsFranchise, and follow us on Twitter at @Dream_Franchise
Begins May 30, 2016 at 12:01 a.m. ET and ends September 1, 2016 at 11:59 p.m. ET. Void where prohibited by law. Must be 18 or older at the start of the Contest, have a computer and internet connection, be a legal resident of the US or DC and a former member in good standing of one of the five branches of the U.S. military who is retired, off active duty and/or was honorably discharged prior to the start date of the Contest. If selected as winners, Contestants must commit to a 5-year CruiseOne home-based franchise, which requires attendance at a 6-day New Franchisee Training Class in Ft Lauderdale, FL and a starting investment capital (for more information, go to www.cruiseonefranchise.com or call 888-441-2542). Only one (1) submission per contestant. To enter, complete the online entry form available on our Facebook page (www.facebook.com/cruiseonefranchise) or on our website (www.operationvetrepreneur.com). If qualified and selected to move to the next round after a phone interview, Semi-Finalists must submit a résumé, CruiseOne franchise application and 1,200 words-2,200 words business plan. Submissions must comply with the Submission Guidelines in the Official Rules. Only complete, valid submissions will be accepted. Sponsored by CruiseOne, Inc., 1201 W. Cypress Creek Rd. Ste. 100, Fort Lauderdale, FL 33309. See [www.OperationVetrepreneur. com] for complete Rules and details.
Franchising USA
Page 61
Franchising USA
Veterans in Franchising
sweetFrog
sweetFrog Shares Veteran Success Stories in Honor of Military Appreciation Month Franchising USA
sweetFrog Frozen Yogurt Salutes the Troops with Deals, Awareness Program. Veteran Parrish Thibault Shares Why sweetFrog was the Perfect Fit for Him.
sweetFrog’s Shemar Pucel shows her commitment to veterans.
“Known for its capable leadership and processfocused business model, sweetFrog has a structure that is familiar and reassuring to military veterans. sweetFrog – Raising the Bar on Veteran Franchise Programs
sweetFrog mascots Scoop and Cookie salute America’s Heroes.
May was Military Appreciation Month and sweetFrog, a leading national frozen yogurt franchise, stepped up to salute our troops in multiple ways. Widely recognized as an avid supporter of the military, sweetFrog consistently goes above and beyond the call of duty to ensure active and retired military personnel are honored as customers and franchise prospects.
Each year, franchise companies across the country take time to honor service members during May’s Military Appreciation Month, and sweetFrog is no exception. Military personnel were invited to enjoy “Military Mondays” each Monday in May of this year – receiving 15 percent off of all in-store purchases at sweetFrog locations across the country. Additionally, any active or retired military men and women interested in buying a sweetFrog franchise were offered $15,000 off their franchise fee throughout the month of May – double the offer that veteran franchise prospects receive throughout the year. However, military service members don’t need to wait until May 2017 to feel the love at sweetFrog. In addition to the military discount on franchise location purchases, sweetFrog has recently launched a Veteran’s Awareness Program. The Veteran’s Awareness Program serves to educate veterans on franchise ownership and career opportunities in franchising. Starting this summer, the sweetFrog team will travel the country to host seminars on military basis to give our nation’s heroes
tips and insights on what is required to start a franchise or launch a new career in franchising. Owning a sweetFrog franchise location is an ideal career choice for military veterans. Franchise ownership allows veterans to maintain independence as business owners, while still enjoying a sense of stability through the inherent support structures within franchise organizations. Franchises, such as sweetFrog, give new owners the tools they need to succeed and set veterans up for the business opportunity of a lifetime.
Shemar Pucel – Born to Support America’s Heroes Active service members, veterans and even military family members have all thrived as sweetFrog franchise owners and executives. Such is the case with Shemar Pucel, manager of franchise marketing and development for sweetFrog. Pucel’s mother, uncle and grandfather all served in the US military. Pucel grew up surrounded by military personnel and is now engaged to an Air Force service member. So it’s no surprise Pucel is very passionate about honoring American service members, both active and retired.
Franchising USA
Veterans in Franchising
Page 63
Veterans in Franchising
sweetFrog
“Active service members, veterans and even military family members have all thrived as sweetFrog franchise owners and executives.
The sweetFrog team showing off their new mobile unit outside of the Fox and Friends studios.
Pucel is one of the key sweetFrog team members who worked tirelessly to establish a Veterans Awareness Program. This will be the second time Pucel has launched an educational program on behalf of a franchise brand that’s specifically tailored for military personal and emphasizes the many benefits of launching a franchise or working as part of the franchising community. She hopes to inspire more military men and women to capitalize on the franchise business model – just like Parrish Thibault, a newly signed, South Carolina-based sweetFrog franchise owner.
Parrish Thibault – Fully Relying on God with sweetFrog Franchise Like Pucel, new franchise owner, Parrish Thibault, is a sweetFrog veteran success story. Thibault was just starting his marine academy training in Long Island when he personally witnessed the September 11 attacks on the World Trade Center. He was one of many passionate patriots who
Franchising USA
was inspired by the day’s events to make the commitment to join the army and quickly join the fight. Thibault volunteered to go to Iraq in 2006 for 14 months and he returned to the Middle East in 2012, serving on the ground in Afghanistan. Similar to Pucel, Thibault grew up with strong ties to the United States Armed Forces as his grandfather served in the Army and his father served in the Navy. After spending several years doing careful research on various franchise companies, including growth rates and ROI, Thibault is now the proud owner of a sweetFrog franchise location. He recently closed on his first sweetFrog location on April 29, 2016. He says he decided on sweetFrog because of the growth potential and the brand’s Christian “Fully Rely on God” culture built right into the name sweetFrog. He has plans to open several more sweetFrog locations in the coming years. Thibault is confident he will succeed as a sweetFrog franchise owner because he sees the franchise operation as a continuation of the ethics, both
professional and personal, he learned from his time in the military. In order to achieve success, he believes any franchise owner must work hard, persevere in the face of hardships, and always strive be an efficient and reliable leader for his or her team. As the leading national frozen yogurt franchise, sweetFrog is the ideal franchise for military service members. Known for its capable leadership and process-focused business model, sweetFrog has a structure that is familiar and reassuring to military veterans. Additionally, community is a central pillar to sweetFrog’s operation, which naturally appeals to men and women who have served our country. And of course, loyalty and support plays a crucial role in sweetFrog’s day-to-day operations. The company stands behind their franchisees and gives them every possible tool needed to succeed. With a shared mutual trust, spiritual faith and incredible work ethic, sweetFrog’s executive team and franchisees, including veteran owners, make an unbeatable team. www.sweetfrog.com
Page 65
$25,000,000 Available We have up to $25 million in capital available for immediate investments. We are looking to invest in or acquire franchisors with enterprise values from $3 million to $25 million and which have excellent USA and international growth potential. For more information, please contact Rich Eisenberg at: Rich@qsr.co | 303-647-4444 | 954-695-5000 | www.qsr.co Franchising USA
FOCUS
Inter face Fina ncial G roup
Togetherness There are many dictionary definitions of â&#x20AC;&#x2DC;togethernessâ&#x20AC;&#x2122;, none of which seem to relate to a franchise environment. Not surprising perhaps as we have only recently created a franchise that fully embraces all aspects of togetherness. Franchising USA
Franchising has a long and very credible history. Fast Food still dominates the industry in terms of units and operational size. Real Estate and Fitness are also in the top category when it comes to size and maturity. The little known fact is that there are well over 4,000 fully functioning franchise brand opportunities in North America, and they range over a veritable plethora of industries, both manufacturing and service; both retail and wholesale; both home based and store front, and so on. For an individual looking for a franchise
opportunity, the scope is almost endless and if you set out to explore them all, you would never get around to actually owning one. In a typical franchise environment, a franchise is awarded to the applicant, and then follows a training program to get the new franchisee in a mode ready to open their business. Training will also take many different forms and differing time periods. However, once training is complete the franchisee is off to their territory to get things moving. Most franchisors will have a mechanism to stay
“By working in tandem, the risk and capital requirement are shared and no one is taking the full exposure in any transaction.” Where is the togetherness in this relationship? It’s not easy to see - and hence the introduction of a franchise that is geared exclusively towards togetherness. The Interface Financial Group has been in business for 44 years, and franchising their concept for over 20 of those years. Recently they took their established and proven franchise through a process to add value for the franchisees, and create a much stronger franchisee-franchisor bond. The result was their re-branded franchise - IFG 50/50. From a startup point of view there are some elements that you find in any franchise start-up program i.e. training which, in the case of IFG, is split between their corporate offices and training center, and the franchisee’s location. There is an official Operations manual - as with virtually every franchise - and the usual branding guidelines, and a mature coaching and mentoring program.
in touch, and offer help and advice along the way. They may also be a supplier of
goods or materials to their franchisee and, as such, will be even more motivated to keep the franchise focused and busy.
The franchisee, however, is basically left
to their own devices, within the confines of the franchise agreement, to run their own
business. The franchisor is not involved on a day-to-day basis. The franchisor may in fact be a competitor, with corporate units in the marketplace competing with their franchisees.
Where things start to take on a different look, is when it comes to the day-to-day operations of the franchise. The IFG 50/50 franchise falls into the financial service category, and IFG provides a cash flow acceleration service for their business clients. They achieve this through a simple invoice purchase mechanism that turn an invoice due in say 30 days’ time, into instant cash. There are two main components to each transaction that IFG undertakes: There is due diligence and funding, where IFG employs the ‘togetherness’ approach for both. Due diligence is the getting started process with a client - we need to know exactly who we are going to work with, and this involves a personal site visit to
the prospective client as well as exhaustive ‘checking’ of the company background etc. Interface takes the approach that as a franchisor they are best equipped to handle the paperwork - 44 years of experience while the franchisee is the best person to handle the site visit and the ‘people’ part of the program. With each doing a portion of the due diligence, it gets completed very quickly and very efficiently. Once done, the transaction can move on to the funding stage - in other words, how we actually buy the invoice from the client. Once again this is done as a joint approach - franchisee and franchisor each contributing a set portion. By working in tandem, the risk and capital requirement are shared and no one is taking the full exposure in any transaction. With IFG 50/50, the franchisor goes on to be responsible for ‘papering’ the transaction and managing it through to maturity - no paperwork for the franchisee. Working together with this approach enables franchisees to enjoy a large element of comfort knowing that always the franchisor is working alongside them with a financial involvement in each transaction. Likewise, for the franchisor there is comfort in knowing that their franchise has a personal and ongoing relationship with the IFG client. IFG 50/50 franchisees can now enjoy the ‘togetherness’ aspect inasmuch as transactions are funded in days rather than weeks - the paperwork burden has disappeared and their returns on working capital employed are well above-average. Togetherness really works in the IFG work-smart environment. www.interfacefinancial.com
Franchising USA
FOCUS
Page 67
ex per t advice
Erik W. Weibust, John R. Skelton, and Anne V. Dunne
Implementing and Enforcing Covenants Against Competition in
in The Franchise Context: part 1
geographic reach, and scope of proscribed activities. Reasonableness is a highly fact-intensive inquiry, regardless of the context, and the same covenant may be found reasonable in one instance and unreasonable in another.
Erik W. Weibust
John R. Skelton
I. Introduction Covenants against competition— oftentimes referred to as non-competition covenants or, more colloquially, as “non-competes”—are an important means for companies to defend against misappropriation or misuse of confidential information and trade secrets, and to protect the company’s goodwill. Although they are not a failsafe for the reasons discussed in this article, covenants against competition do provide important protections and can be a valuable tool in a more comprehensive toolbox. Franchisors, in particular, should consider including such provisions in their franchise agreements, as franchisees are oftentimes, by necessity, given access to confidential information. To some degree, moreover, the fate of a franchisor’s brand is placed in the hands of its franchisees who serve as the “face” of the brand. In addition,
Franchising USA
Anne V. Dunne
franchisors need to be able to protect the integrity of their franchise networks and other franchisees. This article seeks to demystify covenants against competition and to provide basic information about their enforceability in the franchise context.
II. Non-Compete Basics Regardless of the context—employer/ employee, sale of a business, franchisor/ franchisee, etc.—covenants against competition must all meet certain basic threshold criteria to be enforceable. First, they must protect a legitimate business interest. Broadly speaking, legitimate business interests include trade secrets and confidential information, as well as goodwill. Preventing ordinary competition is not a legitimate business interest. Second, covenants against competition must be reasonable in time,
Context matters. So does bargaining power. In the employment context, a court is more likely to enforce a covenant against competition against a senior-level executive than a rank-and-file employee. It is also more likely to enforce such a covenant where the employee had access to sensitive information. Covenants against competition entered into between the buyer and seller of a company, on the other hand, are more likely to be enforceable than between an employer and employee, because the seller is ostensibly a sophisticated party who can negotiate appropriate consideration for his or her agreement not to compete. In the franchise context, it is not as clear cut. Oftentimes franchisees are less sophisticated than franchisors, English may be their second language, franchises can be one-person operations (e.g., a tax preparer or financial advisor), and similar to employees, owning a single franchise is many times a franchisee’s sole source of income. On the other hand, as noted above, franchisors necessarily provide franchisees with access to confidential information, and, to some degree, put the
fate of their brand in the hands of their franchisees. Indeed, many franchisees, particularly those with multiple franchises, are often highly sophisticated operations. Because most litigation surrounding covenants against competition is won or lost an the preliminary injunction stage, where the judge must make an equitable (i.e., fairness) determination as to whether an employee should be ordered to stop working for a competitor or a franchisee to stop operating a competing business for a certain amount of time, there are numerous factors that go into whether an injunction will be granted—including the economy, which state’s law governs the agreement, the proclivities of the particular judge assigned to the case, and the effectiveness of the lawyers. As discussed above, however, the most critical factors are whether the covenant actually protects a legitimate business interest and whether it is reasonable in scope. Because the inquiry is so fact-intensive and circumstance-driven, however, it is difficult to predict the outcome of any future disputes. As such, it is important when drafting and implementing covenants against competition to work with experienced counsel to reduce the risks, and increase the likelihood of enforcement, under any set of circumstances. It is also important to keep abreast of legal developments and update covenants when appropriate.
III. What is a Legitimate Business Interest in the Franchise Context? A. Trade Secrets and Confidential Information
Like covenants against competition in other contexts, protecting a franchisor’s confidential information and trade secrets is a legitimate business interest. Examples of confidential information and trade secrets in the franchise context will vary among industries, and perhaps even between companies, and may include profit margins, strategic growth and/or marketing plans, terms of exclusive vendor relationships, cost of goods sold, and
“Like covenants against competition in other contexts, protecting a franchisor’s confidential information and trade secrets is a legitimate business interest.” even recipes. Regardless of what form the information takes, or whether it is marked “confidential” or a franchisor considers it to be confidential, in order to be protectable under the law the franchisor must treat it as confidential or a trade secret. Experienced counsel should be retained to make sure all necessary precautions are being taken, such as limited need-to-know access, password protections, individualized log-in credentials, signed confidentiality agreements, and the like. For larger and more sophisticated companies, a formal trade secret audit may be appropriate.
B. Goodwill
Protecting goodwill is also a legitimate business interest. Goodwill is an amorphous term, however, that can be difficult to define. Indeed, the term can mean different things in different contexts. In the employment context, for instance, more often than not it refers to customer relationships. In other words, where a salesperson is assigned certain customers, or is provided with leads or resources to obtain leads or to build a book of business, and is the primary contact person for those customers, the employer may be able to enforce restrictive covenants (including not only non-competes, but also customer non-solicitation and confidentiality provisions) in the event the salesperson leaves to join a competitor and/ or attempts to poach the customers. This can be true with in the franchise context as well. Indeed, where the franchise is an insurance brokerage or a tax preparer, for instance, the franchisee may use the franchisor’s name, reputation, national marketing campaigns, and resources to build a substantial book of business, only to terminate the franchise relationship, set up a competing company (or join
a competitor), and solicit all of the clients obtained as a result of being associated with the franchisor. In such circumstances, customer relationships may constitute a protectable business interest. With many franchises, however, the customer is not another company or an individual with which there is an established or ongoing relationship, but rather it is the general public (e.g., a patron at a convenience store or fast food restaurant, or someone looking for a new car). Or the franchisee may be able to convince a court that its customer relationships are a result of its own personal skills and attributes, not the franchisor’s—in other words, that the goodwill “belongs” to the franchisee. In these circumstances, a franchisor’s goodwill may not include customer relationships, so the franchisor will have to rely on something else as a protectable interest. Other types of goodwill in the franchise context can include the franchisor’s reputation, brand loyalty, investment in the franchise, and even the integrity of the franchise network. Again, these will depend largely on the industry and which state’s law governs the franchise agreement, and experienced counsel should be retained to analyze whether your company can claim any protectable goodwill. LOOK OUT FOR PART 2 IN OUR AUGUST ISSUE Mr. Weibust is a partner in Seyfarth Shaw LLP’s Boston office, and a member of the firm’s Trade Secrets, Computer Fraud & Non-Competes and Distribution & Franchise Litigation and Counseling practice groups. Mr. Skelton is a partner in Seyfarth’s Boston office and co-chair of the firm’s Distribution & Franchise Litigation and Counseling practice group. Ms. Dunne is an associate in Seyfarth’s Boston office.
Franchising USA
ex per t advice
Page 69
ex per t advice
John T. Hewitt, founder & CEO, Liberty Tax Service & SiempreTax+
5 Ways to Increase Franchise Sales What if I told you the key to increasing franchise sales was simply to build relationships?
You might think I was oversimplifying a complex process of sales and marketing and lead generation and any number of other things. Perhaps. But when you really get down to it, sales have always been about relationships. The more you build, the more others will come to see what your franchise has to offer, the more sales you will make. So, how do you build those relationships and increase franchise sales? Here are five things you need to keep in mind ideas.
Establish a strong brand reputation
John T. Hewitt
Franchising USA
You know and I know that your brand reputation comes from customers. If they like what you provide, they encourage their friends and family to use your products or services. You build a great relationship with your customers by providing them unmatched customer service.
You can ensure that your franchisees are delivering exceptional customer service by setting a number of requirements that they must meet. These should be objective measures, for example, the total number of goods sold or services rendered in a certain period of time. If a franchisee canâ&#x20AC;&#x2122;t reach the goal, he or she is not likely offering the best customer service. You as the franchisor, should have the right to take back the poor-performing office to protect the brand and its relationship with customers. Franchisees who offer poor customer service will damage bring down your companyâ&#x20AC;&#x2122;s reputation. If your goal is to be the best, setting high standards is crucial. By meeting high standards, you generate excitement about the brand and can build sales.
Build a successful business track record Where do you want your franchise to be and when do you want to get there? You
“If your goal is to be the best, setting high standards is crucial. By meeting high standards, you generate excitement about the brand and can build sales.” create the vision for your brand, then you set the goals to make the vision a reality. Again, relationship building is part of the process. This time the relationship needs to be with your franchisees and your corporate employees. They need to understand their role in helping the franchise meet its goals. Publically celebrate those who embrace, reach, and surpass the objectives. Personally encourage those who struggle to reach expectations. This goal-setting can help your business establish a successful track record. When we set initial goals for our franchise, we did it so we could guarantee that we were not expanding unprofitable locations. We were No. 3 in the business then, and we knew that we would need to average in the Top 2 in number of tax returns per office to assure profitability. Anything less and we might be expanding too rapidly, causing the growth to be too diluted. We knew we had to be No. 1 or 2 in each office so that our franchisees would have a solid foundation for growth.
Create excitement with your promotions Wherever you go, you should be an evangelist, proclaiming the good news about your brand. But it can’t hurt to offer one-time promotions that create excitement and generate buzz about the brand. For promotions to be effective they need to be unique, outside the norm, or “fanatical,” as I like to say. When we were a young company, we wanted to start out very aggressively. At the time, one of our competitors was charging $25,000 per territory and, to get some traction, we offered FREE franchises. Who gives away free franchises? Someone who is thinking big and has even bigger goals. Our “no
fee for the first year” offer was a success, and the strategy served as an expansion opportunity. People still are talking about it. At a recent sales seminar, one man told us that he heard about the company during the time when there was no franchise fee. Now, he was ready to pay to be a part of the brand.
Relationship-building social media and marketing strategies Social media is all about relationshipbuilding. The challenge here is that there are so many platforms to master and so many different ways to use the tools. I’ll just focus on the top three. • LinkedIn. Authoritative. Make sure your LinkedIn page is claimed and updated with robust information about your business. Utilize their publishing platform to create an authoritative presence and join/participate/add value in groups that include or can influence your target audiences. Leverage advertising opportunities to zero in on your target prospects and use a lead magnet to get them to “enter” your marketing automation funnel. Develop persona specific content for nurture sequences. • Facebook. Actively post 3-5 times per week minimum, 3-5 times per day maximum. Be social, engage with fans and other businesses. Leverage relationships to create cross-branded content. Use video when and where possible. Tell the story of your opportunity and those who have experienced it in a fun way. • Twitter. Timely. Relevant. Informative. Influencer. Interaction. That about sums it up. Make sure you are following, commenting, retweeting, and engaging with influencers in a
genuine way. Do not expect reciprocity initially, and drive towards developing long-term, mutually beneficial relationships. Measure your outcomes on each of these platforms to understand what drives awareness and results. Remember that every touch-point is an experience you create. How will you be remembered when it comes to decision time?
Woo current franchisees Your successful franchisees are your greatest asset for growing the business. For one thing, they can act as town criers, sharing their stories with prospective owners as a way of encouraging them to open franchises of their own. But you knew that. What you may not know is that along with asking your successful franchisees to woo others, you should be wooing them. That’s right, you should create financial and other incentives as a way of enticing your best franchisees to add locations and expand their business. Who better to grow the brand? Your strong performers understand the business. They turn a profit, and they pay royalties. They already have a vested interest in the franchise’s health and well-being. Even better, when current franchisees add stores, they don’t increase the burden on corporate. They already have a relationship with you – a good one at that – so nurture it and watch it grow. Despite all the advances we’ve seen in marketing and promotion, we’re still dealing with human beings, and building relationships with others remains your No. 1 tool to grow your franchise. Relationships matter. John T. Hewitt is founder and CEO of Liberty Tax Service and SiempreTax+. Liberty Tax is one of the fastest growing tax preparation franchises in history, reaching more than 4,000 locations in 15 years. SiempreTax+ launched in the 2015 tax season and already has about 150 locations. www.libertytax.com www.siempretax.com/en
Franchising USA
ex per t advice
Page 71
franchise & serv ices directo ry
franchising usa A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Franchising USA website. Each detailed, full colour A-Z listing comes with a 150 word write up and your logo.
Big O Tires® BIG O Is Your BIG Opportunity. With more than 50 years in the tire and automotive maintenance industry, Big O Tires® is proud to be a worldclass leader. As we continue to thrive in an ever-expanding market, we invite you to be a part of the exciting opportunities as a member of the Big O Tires® family. Big O Tires® is proud to be one of the most progressive tire and automotive service franchises in the nation. When you join our family, we supply you with a powerful set of tools to help bring your business to the front of the pack: This website and any request for information or forms are not a franchise offering or an offer to sell a franchise.
Clayton Kendall Clayton Kendall provides a simple, easy to use e-store platform that connects your franchisees to Clayton Kendall’s integrated front-to-back inventory management system allowing for the creation, production, fulfillment, distribution and shipping of all your marketing and sales materials (uniforms, signage, branded merchandise) to be controlled with a
Coverall® Coverall is a leading franchised brand in the commercial cleaning industry and one of the most respected franchisors of professional office cleaning companies focused on killing germs, removing soil and helping to create cleaner, healthier work environments. We help people start their own franchised businesses using the Coverall® brand, and processes, so they may deliver commercial cleaning services to their customers. Coverall began in 1985 as a three-person company headquartered in San Diego, California and now supports more than 8,000 Franchised Businesses in 90 markets across the United States and Internationally. Those independently owned and operated franchised
Dunkin’ Brands Named the top ice cream and frozen dessert franchise in the United States by Entrepreneur magazine’s 31st annual Franchise 500® ranking, Baskin-Robbins is the world’s largest chain of ice cream specialty shops. Baskin-Robbins creates and markets innovative, premium ice cream, specialty frozen desserts and beverages, providing quality and value to consumers at more than
Franchising USA
Excellent for branding and recognition. Choose a 12 or 6 month package or simply add the A-Z directory onto your Focus, Profile or Ad! To learn about the A-Z directory or any other products please contact Vikki Bradbury: advertising@cgbpublishing.com or 778-426-2446
• Leading name-brand recognition. • Experienced franchise system. • Competitive marketing strategies. • Dynamic and perpetuating consumer engagement • Comprehensive start-up training. • Sales guidance from a network of retail experts. • Multiple warehouses stocked to meet inventory demands. • National and regional meetings/conventions. • Access to exclusive marketing resources. • On-site visits and strong support from Franchise Business Consultants. Contact us today! www.bigofranchise.com
simple click of a mouse. Clayton Kendall is the single source marketing solution for national franchises such as Massage Envy, Orange Theory Fitness, European Wax Center, and Blaze Pizza. Contact: Dan Broudy, CEO Email: dan@claytonkendall.com Phone: 412-798-7120 (1-888-799-4757) Website: claytonkendall.com
businesses and their employees professionally clean over two million square feet of commercial office space every day. With Coverall, becoming your own boss is easier than you might think, no experience necessary, and financing is available! Our Initial Training Program emphasizes franchised business operations and professional commercial cleaning tools and techniques, helping prepare you to run your business. The Coverall® Program sets the bar higher for healthy cleaning and differentiates Coverall franchised businesses from traditional janitorial service providers in the market. Start your franchised business with the leader in healthier office cleaning! Website: www.coverall.com/franchise-opportunities
6,000 retail shops in 33 countries. BaskinRobbins was founded by two ice cream enthusiasts whose passion led to the creation of more than 1,200 ice cream flavors and a wide variety of delicious treats. Contact: Laurel White Phone: 781-737-5286 Email: laurel.white@dunkinbrands.com Website: www.baskinrobbinsfranchising.com
Fastest labs
progress. Ongoing coaching and technical advice help support your new venture.
Fastest Labs® offers drug, alcohol, DNA paternity and background screening. We focus on providing clean, fast testing services and a phenomenal customer experience. We serve clients within 5 minutes rather than a typical 1 hour wait at a medical facility, rapid test results are sent immediately, instead of 1 to 3 days and our tests are more affordable.
Qualifications: Fastest Labs® looks for individuals with outgoing personalities, great customer service and sales/marketing skills. No medical background or drug testing experience is necessary because all certifications are provided.
Training: Fastest Labs® provides 1 week of training in San Antonio, TX. All certifications, sales instruction, internet marketing strategies and business operations training are included. Prior to arrival, we provide online training modules, videos and tutorials to track your
Fastsigns® Now more than ever, businesses look to FASTSIGNS® for innovative ways to connect with customers in a highly competitive marketplace. Our high standards for quality and customer service have made FASTSIGNS the most recognized brand in the industry, driving significantly more traffic to the web than any other sign company. We also lead in these important areas: • #1 Ranked Sign Franchise in Entrepreneur Magazine Franchise 500 three years in a row • Franchise Business Review FBR50 Franchisee Satisfaction Award 2006-2015 • Franchise Research Institute World Class Franchise 2011-2015
Low start-up costs, high margins and 9-5 banker’s hours, Call Fastest Labs® today! Website: www.fastestlabs.com/franchise Email: dave@fastestlabs.com Phone: 210-641-2058 Contact: Dave Claflin
• Franchise Research Institute #1 Rated Sign & Graphics Franchise 2014-2015 • CFA Franchisees’ Choice Designation 2004-2015 • FASTSIGNS is one of only a handful of franchises approved for $21 million in SBA financing for approved franchise candidates FASTSIGNS has over 400 markets approved for development in the US and Canada and is also seeking Master or Area Developer expansion in markets worldwide. For more information: Phone: 1-214-346-5679 Email: mark.jameson@fastsigns.com Or visit our Website: www.fastsigns.com
fingernails2go
• Fast return on investment
Finernails2Go have built the nail art kiosk that is going to revolutionise the cosmetic world.
If you want a single kiosk for your business premises or to distribute multiple kiosks in an agreed area, we are open for business.
• The only Nail Art Kiosk with bespoke HP printing • The only Nail Art Kiosk with Tritron Speciality Ink – compliant with all major health regulatory bodies. The Fingernails2Go Kiosk delivers:
Fingernails2Go Kiosks will not only create excitement they will increase the time people spend at the location. You or your customers will be able to sell both nail art, and other products as more people come in to discover Fingernails2Go
• Unlimited design opportunities – • High res HP printing • On screen advertising opportunities
Go to http://fingernails2go.com/business/contact/ to get started with this fantastic new business opportunity.
Foot Solutions
• Satisfaction of Helping Others
What Are You Looking For In A Business?
• Opportunities from $85,000 - $240,000 Single and Multi-unit
• The only Nail Art Kiosk built by Tensator.
• Reasonable Hours • High Margins • Low Labor Requirements • High Consumer Retention • Not Impacted by Economy • Not Seasonal • Fastest-growing Market Age 40+
FRANFUND FranFund provides a comprehensive set of funding solutions for your new or expanding business including our exclusive FranFundSelect® program which provides working capital loans for up to $150,000. This program enables lightning fast approvals and funding in 5 to 7 business days or less with no personal assets, no SBA guaranty fee, no training certificate required, and minimal paperwork.
Foot Solutions is the world’s largest specialty wellness franchise focused exclusively on helping people feel good from the feet up. For more information, visit www.footsolutions.com, email fscorp@footsolutions.com, or call 770-916-5997.
Our team of funding experts are here to work with you to create a customized capitalization solution for your specific situation, whether you’re launching a new business or expanding a current one. After all, it’s our mission to get your business up and funded in a fraction of the time! Phone:817-730-4500 Fax:817-546-1291 Website: www.franfund.com Email: info@franfund.com Contact:ksenay@franfund.com
Franchising USA
franchise & serv ices directo ry
Page 73
franchise & serv ices directo ry
Fresh Coat With Fresh Coat, you bring scaling and professionalism to a fragmented industry. The quality, expertise, technology, and customer service that you offer as a Fresh Coat owner will set you apart and bring in recurring revenue through loyal customers and referral programs. You Don’t Paint! As a Fresh Coat owner you work on your business, not in your business. Our operations system helps you hire and retain quality painters who fulfill the jobs that you sell. Multiple Profit Centers • Residential (interior, exterior). • Commercial (businesses, office buildings).
honkamp krueger Honkamp Krueger & Co., P.C. is a Top 100 CPA and business consulting firm and the eight-fastestgrowing CPA firm in the U.S. (Accounting Today, 2015) Specializing in franchise services, HK offers 40-plus forward-thinking, innovative solutions to franchise organizations in all 50 states. In addition to our tax, accounting and consulting services, HK offers total hire-to-retire solutions through our human capital management affiliate, HKP. Through our HK Financial Services affiliate, HK offers world-class wealth management solutions.
HuHot Mongolian Grills
MONGOLIAN GRILL
Hot is a national create-your-own stir fry concept offering a wide variety of meats, seafood, noodles, fresh veggies, and signature sauces to suit your tastes. Select your favorite ingredients then be entertained as your meal is cooked to perfection by our grill warriors on a 6-foot, scorching hot grill. It’s always all-you-can-eat, so you can create a different meal every time.
• Government Contracts. • Real Estate-Based Programs. Be in business for yourself, not by yourself. We provide up front and ongoing training and support to help you succeed. We also leverage the size of Fresh Coat as a whole to develop relationships with well-known brands like Sherwin-Williams®, getting you the best price on the quality materials that meet customer expectations. Contact: Beth Boecker Phone: 855-832-8284 Email: bbboecker@strategicfranchising.com Website: www.freshcoatfranchise.com
Our depth and level of franchising expertise along with our track record for providing independent and objective franchise advisory/consulting services clearly differentiates HK from all other franchise advisors across the country. When you partner with HK for your franchising needs, you will always have easy access to one of our owners who will walk in your shoes with you and who has a unique perspective on being an entrepreneur and business grower. Phone: 888.556.0123 www.honkamp.com
locations in 16 states and that focus has remained unchanged. In 2015 HuHot was ranked for the fourth consecutive year in Franchise 500 by Entrepreneur and on Technomic’s Top 500 Chain Restaurant Report. HuHot has been ranked as one of Franchise Times Next 300 Franchise Chains 3 years in a row, and named as one of Nation Restaurant News’ Next 20 Chains of 2014.
HuHot Mongolian Grills, LLC opened its first restaurant in Missoula, Montana in 1999 focusing on fresh food, signature sauces and great service. Over the past 15 years, the concept has grown to 58
Contact: Laura Sporrer Phone: (303) 297-1200 Email: franchise_info@huhot.com Website: www.huhotfranchising.com
International Franchise Professionals Group
IFPG to power their business. All of these individuals understand the value of being associated with IFPG.
The International Franchise Professionals Group (also known as IFPG) is a membership based organization that has over 700 members. Our members consist of Franchisors, Franchisor Brokers, Lenders, and other Franchise Professionals that help potential candidates in the process of buying a franchise.
The IFPG is a strictly membership based organization that does not participate in any referral fees from our franchisor members or our brokers, thereby allowing all of our members to work freely together. Our long-term success is predicated on retaining our members and providing all the tools needed to help you sell more franchises, and close more deals.
Hundreds of nationally recognized franchise companies have chosen the IFPG and its members to represent their brand; hundreds of experienced franchise consultants and brokers have chosen the
If you’re a franchisor, franchisor broker, or another profession that serves the franchising industry call us today at (888) 977-IFPG to learn about membership opportunities.
Little Caesars
continue to receive support, expert analysis and consultation from corporate as their business grows.
Little Caesars offers strong franchisee candidates opportunities in select locations across the country. As America’s fastest growing pizza chain, Little Caesars provides candidates an opportunity for independence with a proven system, a simple operating model and strong national brand recognition.
Little Caesars’ requires candidates desiring to open one store to have a net worth of $150,000 with a minimum of $50,000 in liquid, unencumbered assets (such as cash). Franchisees must also be able to obtain financing to cover the total costs of opening a franchised location.
Franchisees benefit from a comprehensive training program that focuses on all aspects of the business, including training, architectural and construction services to help with design, preferred lenders to assist with financing, the ongoing research and development of new products, and effective marketing programs. Franchisees
Franchising USA
• National Accounts.
For the sixth year in a row, Little Caesars was named “Best Value in America”* of all quick-serve restaurant chains. Phone: 800-553-5776 Email: USdevelopment@LCEcorp.com Website: www.LittleCaesars.com
Massage Green Spa International Massage Green Spa is positioned to outpace the competition with our membership-based business model, easy cost of entry, value positioned concept, easy real estate, low overhead, beautiful distinctive retreat design and multiple revenue streams. Owning a Massage Green Spa franchise has an amazing opportunity for professional and personal growth. It most importantly focuses on the ever changing wellness revolution. By combining massage therapy with an ecofriendly environment, we have addressed the need for improving both our internal and external health.
Midas Midas, a recognized brand throughout the world and highly renowned name in complete car care, is proud to be one of North America’s original franchise opportunities – and one of its best. With Midas, you experience the best of both worlds - the support of an experienced franchise organization and the satisfaction of operating your very own auto service enterprise. As a Midas franchisee, you become a trusted name the day you open your doors for business. Building consumer trust is at the heart of our brand. We work every day to earn that trust by providing expertise, responsiveness, and the best value to every customer every time. Benefit from nearly 60 years of “The Midas Touch”
Our Town America For over 40 years, Our Town America has been providing new movers with traditional hospitality by mailing warm housewarming gifts from local businesses in a premium welcome package. It is Our Town America’s mission to welcome new movers into their communities, to help local businesses gain new loyal and long-term customers, and to provide franchisees with an excellent business opportunity. Thousands of satisfied business owners throughout the United States attest to the success and effectiveness of the Our Town America program
Pet Wants Pet Wants creates fresh and all-natural pet food and delivers it to our customers on a monthly, subscription basis...that ensures the food is fresh for the pets and that you generate consistent and on-going revenue streams. As a franchise owner, you will need to share this love of pets and their well-being. But no experience is needed. No matter if you start in your home, a small office or store, we teach you everything you need to know about
pinot’s palette Pinot’s Palette is a pioneer of the paint and sip experience – a revolutionary way to enjoy art and wine, meet new people and bond with friends. #1 paint and sip for franchisee satisfaction – Pinot’s Palette is a unique, art-inspired entertainment concept catering to adults, corporations and kids. By combining art and wine into a single concept, Pinot’s Palette now offers an inclusive, social activity for guests to enjoy with friends, family or work team members.
We make you eligible to take advantage of all corporate services: site selection, design and construction, marketing, financing, training and grand opening program. We continue to offer support with the following (not limited to): training, national and regional advertising, operations procedures and assistance, ongoing supervision and management support, increased spending power, access to bulk purchasing and a community of like-minded individuals that are as passionate about your success as you! Contact: Jim Belanger Phone: 248-849-9600 Email: jbelanger@massagegreenspa.com Website: www.massagegreenspa.com
Midas has built a stellar reputation in the automotive service and repair industry nearly six decades. We want to help you succeed. Before you open a location and as you continue to operate your shop, Midas will help you with the following: • Business management system for your shop • New franchisee orientation • Ongoing training and training resources • Operational support. • Development support • Optimizing and marketing your business: Join Midas today by calling 1-800-365-0007 or visiting www.midasfranchise.com! This website and any request for information or forms are not a franchise offering or an offer to sell a franchise.
while dozens of locally owned franchises validate the Our Town America concept as a viable business opportunity. Franchisees are neighborhood marketing consultants, showing local business owners how to target their best prospects with enticing offers via direct mail. Since beginning to franchise in 2005, Our Town America has been consistently ranked a Franchise Business Review Top 50 Franchise making them the only Advertising brand to land a spot in the 10-year Hall of Fame and the sole company to be crowed Franchise Business Review’s Top Company. Website: http://www.ourtownamerica.com Email: franchising@ourtownamerica.com
operating and growing a successful pet food business. You just need a passion for pets, the drive for success and the ability to follow our proven operating system. In return, you will be rewarded with the great benefits of being a business owner. Bottom line, this is a fulfilling, financially rewarding and enjoyable “people and pets” business. Contact: Beth Boecker Phone: 513-331-3647 Email: bbboecker@strategicfranchising.com Website: www.petwantsfranchise.com
Pinot’s Palette’s entertaining environment, expert guidance from trained local artists and exceptional customer experience creates strong word of mouth, community recognition and a loyal customer base. Pinot’s Palette looks for franchisee partners who love to entertain and values that fit comfortably within the Team Pinot culture. Not art experience required! Franchising since 2010 with more than 130 locations in 33 states, Pinot’s Palette is an established, awardwinning concept leading the paint and sip industry. Website: www.PinotsPalette.com/Franchise or Email: Franchise@pinotspalette.com
Franchising USA
franchise & serv ices directo ry
Page 75
franchise & serv ices directo ry
PIRTEK USA PIRTEK is the fluid transfer solutions leader in sales and service and the only franchise of its kind in the United States. With more than 30 years of experience in this field, PIRTEK boasts more than 400 Service & Supply Centers and a fleet of Mobile Service Vehicles in 23 countries. Powered by an industry-leading approach to sales and service and backed by a corporate center passionate about its franchisees and customers, PIRTEK offers unmatched service and logistics. This is a sales-driven, service-based business that
PrimoHoagies PrimoHoagies specializes in gourmet, Italian Specialty Sandwiches. Their entire menu is built around quality. PrimoHoagies uses only the finest Thumanns meats and cheeses on the market to its signature Italian bread baked in the stores throughout the day. Quality will never be compromised in a PrimoHoagies restaurant. This one of the reason we have become ranked in the Franchise 500 by Entrepreneur magazine. Because we have built our reputation on the
RNR Tire Express & Custom Wheels No other franchise business offers you a better opportunity to reach your financial goals and to enjoy the lifestyle benefits you so richly deserve. Our franchise owners are happy, they’re making money and they’d do it all over again. Founded in 2000, the first franchise opened in 2003. Today, RNR has 15 multi-unit franchisees with nearly 100 stores across 23 states. RNR is Entrepreneur® magazine’s category leader and the go-to place for quality tires and custom wheels with unique payment
Signal 88 Security Signal 88 Security was founded to revolutionize and establish a higher standard of professionalism in the security industry. Signal 88 Security was founded in 2003, in Omaha, Nebraska, by law enforcement professionals. In Nebraska police code, Signal 88 means “situation secure.” We offer law enforcement* and community-based security personnel, incorporating state-of-the-art technology to provide customized security services to the business community. From its Omaha roots, Signal 88 Security has quickly grown to providing services in over 37 states with more than 160 Franchises serving nearly 300 territories across the country – with more offices opening every month. We are equipped to handle any size property, event or business with a customized security solution.
Sports Clips Established in 1993 and franchised in 1995, Sport Clips is one of the nation’s leading franchises with more than 1,500 stores nationwide. Founder and CEO Gordon Logan is a pioneer of the unique sports-themed haircutting franchise, including the development of the Sport Clips All-Star haircutting systems, operating procedures, and marketing programs. It’s a great recession-resistant business that’s all cash, no receivables, and no haircare industry experience is necessary. Sport Clips is ranked by Entrepreneur Magazine as one of the top 20 “Fastest-Growing Franchises” and in the top 20 in the “Franchise 500.” It is also ranked by
Franchising USA
focuses on repairing and maintaining hydraulic- and pneumatic-powered machines. Although the brand might sound like an opportunity better suited for someone who can work a wrench, it’s a business well-matched for entrepreneurs who understand the value of building relationships and are prepared to capitalize on the opportunity to thrive wherever industrial equipment is used—and it is used virtually everywhere. For more information contact: Gwyn T. O’Kane, CFE, Vice President of Franchise Development, PIRTEK USA Phone: 321.504.4422 Email: gokane@pirtekusa.com Website: www.pirtekusa.com
quality of our products, our brand has become iconic in all of its markets. We experience a level of brand loyalty that in rarely seen in the sandwich franchise marketplace. Our neighborhood Deli feel has made us welcome in communities up and down the East Coast. This is why our products have won hundreds of awards. Visit our website at www.PrimoHoagies.com or Contact Mike Aruanno at mike@primohoagies. com to learn how this brand has created such a stir in the sandwich marketplace.
options including our Pay-As-You-Go! program. If you love making money, filling a recession-resistant and underserved need in the marketplace, and working with people who are passionate about living life to its fullest, owning an RNR Tire Express & Custom Wheels franchise is for you. © 2016 RNR Tire Express & Custom Wheels. All rights reserved.
Website: www.rnrfranchise.com Phone: (877) 960-3242 Email: JArmatas@rnrwheels.com Contact: John Armatas
Our security programs are successful because we fully understand the nature of the businesses we secure, the properties and personnel we protect, and the deterrent effect we promote. We have developed a business model designed with our Franchise Partners’ success in mind. Our model tackles all phases of business from start-up to maturity, admin to operations, and marketing to sales to offer our Franchise Partners’ the best opportunity to successfully run a Signal 88 Security franchise, creating peace of mind to pursue passion in life. Phone: 254-870-2767 Website: www.signal88.com/home.aspx Email: jhinnen@signal88.com Contact: Jessica Hinnen
FORBES as a “Top Ten Best Franchise” to buy for its investment category. Qualified veterans who are interested in owning a Sport Clips are eligible for a 20 percent discount off of Sport Clips’ franchise fee of $59,500 through participation in the Veterans Transition Franchise Initiative, also known as VetFran, which was created in 1991 during the Gulf War. At Sport Clips, it’s good to be a guy but it’s great to be an owner! Visit sportclipsfranchise.com to learn more. For more information, contact Karen Young: Email: franchise.recruitment@sportclips.com Phone: (800) 872-4247 x. 1 Website: www.sportclipsfranchise.com
Texas Laundry Service Company From our corporate facility in Pasadena, Texas, as well as our satellite offices in San Antonio, Corpus Christi and LaFeria we sell, service and install Speed Queen washers Extractors, commercial dryers, flatwork ironers and small commercial home-style laundry equipment for vended and on-premises laundries.
The Growth Coach You Can Create the Life – and Business – You’ve Always Wanted Growth Coach, a low-overhead, home-based business, can be that vehicle you seek to give you MORE LIFE, freedom, fulfillment and financial success. If you are ready to invest in yourself and your own business, and take control of your own destiny and schedule, here’s a way for you to feel good about both making a substantial difference AND making substantial money. Becoming a franchisee with The Growth Coach allows you to build a coaching business with the
The Interface Financial Group – IFG 50/50 The Interface Financial Group – IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small and medium-sized businesses by purchasing current, quality invoices at a discount, thus accelerating the client’s cash flow and growth. All transactions are syndicated 50/50 with the franchisee and the franchisor, and that means less working capital required to fund transaction: IFG does the bulk of the due diligence and the ‘paperwork’ for the transactions, and IFG 50/50 franchisees will concentrate their efforts on building the referral relationships – they do the ‘people work’. Key advantages of being an IFG 50/50 franchisee include: • No staff to hire, fire, or manage
TopFire Media TopFire Media is an integrated digital marketing and public relations agency, specializing in the franchise industry. Our clients benefit from our years of experience in franchise SEO service, public relations, media relations, content writing and management, social media marketing, and web design. We work to bring all of these elements together to achieve a common goal – our clients’ success.
uBreakiFix Founded in 2009, uBreakiFix specializes in the repair of small electronics, ranging from smartphones, game consoles, tablets, computers and everything in between. Cracked screens, water damage, software issues, camera issues, and most any
Our clients range from investors seeking maximum return on investment in the coin laundry business to laundry managers at hotels, schools, prisons, restaurants, hospitals and long term health facilities in search of greater efficiency. Contact: Diane Klingman Phone: 713-472-4083 Email: laundrylady2015@gmail.com Website: www.telscoequipment.com
potential to give you the wealth, freedom, and fun you have always wanted. By combining your previous business experience with our proven systems and world class training services, you’ll be able to serve your local area businesses with expert advisory services. No travel is required, and the business structure is flexible. Because of that flexibility, coaching franchise investment requirements are low and profit margins are robust. Contact: Beth Boecker Phone: 855-832-8284 Email: bbboecker@strategicfranchising.com Website: www.growthcoachfranchise.com
• No storefront to own, lease, or maintain • No Inventory or stock to purchase • No extensive travel because IFG franchisees do business locally • Business-to-Business, professional environment with regular business hours of operation • Flexibility to relocate for part of the year or permanently and continue doing business Our franchisees are excellent communicators, relationship builders with decision-making and problem-solving skills, and much more sales & marketing oriented. IFG has been in the ‘invoice discounting’ business since 1972, and employs its franchise network in the US, Canada, New Zealand, Singapore, the UK, Ireland, Australia, Mexico and South Africa. www.interfacefinancial.com
Our integrated approach combines our public relations and franchise SEO service prowess and is designed to generate brand awareness, drive consumer engagement, and build credibility for your company. Phone: (708) 249-1090 Fax: (708) 957-2395 Website: www.topfiremedia.com Email: info@topfiremedia.com Contact: Matthew Jonas
other problem can be repaired by visiting a uBreakiFix store across the U.S. and in Canada. For more information, visit ubreakifix.com. Contact: Brynson Smith Phone: (877) 320-2237 Email: b.smith@ubreakifix.com Website: ubreakifix.com
Franchising USA
franchise & serv ices directo ry
Page 77
franchise & serv ices directo ry
The UPS Store The UPS Store, Inc. is the world’s largest franchisor of retail shipping, postal, printing and business service centers. The UPS Store comprises nearly 4,500 independently owned locations in the U.S., providing convenient and value-added business services to the smalloffice/home-office (SOHO) market, corporate “road warriors,” and consumers. With more than 30 years of franchising experience, The UPS Store has provided thousands of people with franchise opportunities
Veterans Business Services Veterans Business Services provides the most advantageous franchise acquisition terms for Veterans and provides innovative entrepreneurial training for qualified Veterans seeking grants under the VA Vocational Rehabilitation Program. Veterans Business Services (“VBS”) specializes in entrepreneurial opportunities for Veterans and has an extensive reach into the Veterans community and can generate significant interest from qualified Veterans who wish to start a franchise or small business. VBS offers multiple marketing methods that have proven effective with helping franchise organizations with their expansion plans. Utilizing custom email marketing
WELLBIZ BRANDS, INC WellBiz Brands, Inc. is headquartered in Highlands Ranch, Colo. and is one of the largest health and wellness companies in the United States. The company owns three separate franchise entities: Elements Therapeutic Massage, Inc., which franchises massage studios, providing custom therapeutic massage to meet clients’ individual needs, Fitness Together Franchise Corporation, which franchises one-on-one and semi-private personal training studios, and Fit 36, Inc., which franchises high intensity interval training studios, with workouts done as a group.
ZIPS Dry Cleaners Founded in 1996 and franchising since 2006, ZIPS Dry Cleaners is an aggressively expanding dry cleaning franchise known for its same-day, one-price business model. A customer can have any item of clothing dry cleaned for $2.29. It doesn’t matter if the item is a necktie, a wedding dress or a pair of pants, the price is $2.29, almost half the industry average. Garments are cleaned on-site, allowing for same-day service.
Contact: https://theupsstorefranchise.com/ contact-ups-franchise Phone: (877) 623-7253
Web: https://www.theupsstorefranchise.com/
campaigns, news press releases, and online franchising e-magazine articles, VBS gets the message to qualified Veterans who are invested in starting a franchise. VBS supports service disabled Veterans who are enrolled in the self-employment track within the Veterans Administration and provides outreach efforts to transitioning military through TAP and ACAP programs. As a graduate business of the Entrepreneurial Bootcamp for Veterans (“EBV”), we also assist other graduates of EBV and provide coaching support through mentoring programs. VBS is where Veterans turn to make their franchise dreams a reality. Contact: James Mingey Phone: 202-349-0860 Email: info@veteransbusinessservices.us Website: www.veteransbusinessservices.us
Elements Therapeutic Massage, Inc. began franchising in 2006 and has approximately 210 Elements Massage™ locations. Fitness Together Franchise Corporation began franchising in 1996 and has approximately 175 Fitness Together® locations across the United States. Fit 36, Inc. began franchising in 2014 and has a single FIT36™ location in downtown Denver. For more information Websites: wellbizbrands.com, elementsmassage.com, fitnesstogether.com, fit36fitness.com
sentiments in regards to eco-friendliness, ZIPS uses a filter system to avoid the need to cook solvents, and uses approximately 75 percent less solvent than other dry cleaning companies, creating 90 percent less waste than most operations in the process. Headquartered in Greenbelt, MD, ZIPS currently operates more than 40 stores throughout the MidAtlantic region of the United States.
Also, in an industry that often coincides with negative
Contact: Aaron Goldberg Phone: (240) 437-4747 Email: agoldberg@321zips.com Website: www.321zips.com
franchising usa
Excellent for branding and recognition.
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Franchising USA website. Each detailed, full colour A-Z listing comes with a 150 word write up and your logo.
Franchising USA
that enable them to become their own boss. In our network, you’ll find franchise owners from all walks of life, everyone from entrepreneurs to white collar professionals to corporate leaders have chosen The UPS Store Franchise to advance their financial and personal success. Take a look at the currently available franchise opportunities and contact us for more details.
Choose a 12 or 6 month package or simply add the A-Z directory onto your Focus, Profile or Ad! To learn about the A-Z directory or any other products please contact Vikki Bradbury: advertising@cgbpublishing.com or 778-426-2446
Want to stay on top of the latest news and whats happening at the forefront of franchising?
Franchising USA THE MAGAZINE FOR FRANCHISEES
Subscribe to Franchising USAâ&#x20AC;&#x2122;s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!
To subscribe visit: www.franchisingusamagazine.com
CHECK OUT THE NEW FRANCHISE.org!
>>
Better searchability responsive design easier to navigate franchise comparison tool
Franchising USA