Franchising USA MARCH 2015

Franchising usa T he ma g a z ine for franchisees

VOL 03, ISSUE 5, mar 2015

$5.95 www.franchisingusamagazine.com

Stratus Building Solutions

On Track

How To Buy

a Franchise

main feature

Health & Beauty Franchising LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE

We've worked with over 100 of the Top 200 franchise brands.

We know what works.

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GROW YOUR SYSTEM Franchise Sales Outsourcing • Coordinate Lead Generation Qualify Leads • Collect and Manage Candidate Applications FDD Disclosure • Discovery Days • Closing the Franchise Sale

REACH YOUR TARGETS Public Relations • Search Engine Optimization • Website Development Social Media Marketing • Pay Per Click • Content Development E-mail Marketing • LinkedIn Optimization

Whether you are a franchise startup or an established franchisor, call us to learn how we can put our experience to work for you.

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FRANCHISE CONSULTANTS www.ifranchisegroup.com 708-957-2300

www.franchisedynamics.net 708-798-1800

www.topfiremedia.com 708-249-1090

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Franchising usa T he ma g a z ine for franchisees

FRANCHISING USA VOLUME 3, ISSUE 5, mar 2015 president: Colin Bradbury. colin@cgbpublishing.com

Publisher: Vikki Bradbury. vikki@cgbpublishing.com

Advertising Sales: Kimberly Kutnick kimberlyk@cgbpublishing.com

Editorial Department: editor@cgbpublishing.com

Editorial team: Rob Swystun Gina Gill

Production: usaproduction@cgbpublishing.com

DESIGN: Jejak Graphics. jejak@bigpond.com

COVER IMAGE: Stratus Building Solutions

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 This year’s IFA Convention theme was “Connect. Innovate. Evolve.”

This is what Franchising is all about and there are many opportunities for budding Entrepreneurs. Franchising is all about following a “System” and is at the heart of what Franchising is all about, one of the best things about Franchising is that someone has already done all the hard work and set up a successful business model to make it easy to follow. There are many different types of Franchise systems and in this issue of Franchising USA we focus on the Health, Fitness and Beauty industry as our Main feature.

In the 30 years I have been involved in Franchising (Yes CGB Publishing is celebrating its 30th year) I am always impressed with the amount of information available to potential Franchisees and in this issue our experts certainly delivered, offering advice on everything from ‘How to buy a Franchise”, How to save Money buying a franchise, Making the deal, Putting together a business plan, and even how to Safeguard against Cyber attacks.

On the cover we have Stratus Building Solutions who Franchising USA recently

interviewed; you can read their story on pages 10-11.

We also look at some of the Guru’s of

Franchising and who to follow on social media, these Guru’s are a minefield of

information and you will not go wrong following what they have to say.

Apart from the regular news items we

also continue are Veterans Supplement with JDog Junk Removal on the cover,

this is a unique Franchise that offers great opportunities for Veterans.

This issue we also introduce our A-Z

Directory of Franchises and Services at the back of the magazine, a quick and

easy resource to help you find what you are looking for.

I hope you enjoy reading this issue and as always look forward to your comments which in turn help us to deliver the

information, asked by you, the reader.

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

On the Cover 10 Cover Story

Health and Beauty Franchising

36 How to Buy a Franchise

Andrew Cagnetta, Transworld Business Advisors

62

Stratus Building Solutions

52

In Every Issue

Have Your Say

06 Franchising News Announcements from the Industry

34 Considerations for Buyers and Sellers of

Franchise Restaurants Dick Gorski , Valuation Research

26 Feature Article

Health and Beauty Franchising 39 Veterans Supplement

News and Information for Veterans in Franchising 68 A-Z Franchise and Services Directoy

Spotlight on Services 16 IFPG

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26

march 2015

26 Feature Article

20

f ra nchising usa

Contents

14 Safeguarding Your Business From Cyber Risks Ann Dee, Hub International

f ra nchising usa

Expert Advice

20 The Skills Gap is Costing Employers,

Are You Adjusting Andy Roe, Sure Payroll

24 Franchising Sparkles in the Health and Beauty Industy Mark Siebert, iFranchise Group

64

18 Franchise Guru’s

30 5 Things You Should Know Before Purchasing a

Child-Focused Franchise Bob Kirschner, Kids R Kids International Inc

36 How to Buy a Franchise Andrew Cagnetta, Transworld Business Advisors

54 Its About The Deal, One Common Mistake to Avoid George Knauf, Franchoice

58 News From The International Franchise Association 60 How to Save Money Opening Your New

Franchise Location Scott Lasky, Lasky Architect

34

52 5 Ways To Make Active Listening a Priority Kyle Zagrodsky, Osteostrong

62 Building a Better Business Plan to Franchise

Your Business Christopher Conner, Franchise Marketing Systems

Focus 22 Pop A Lock 64 The Interface Financial Group

Profiles 12 Smokes Poutinerie

30

66 Which Franchise to Buy When Financial

Numbers Lead and Lie Part 2 Lynn Shelton, Shelton and Power

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what’s new!

Southeast Franchise Forum Elects New Board Members throughout the franchise community and to enhance the reputation of franchising

through the exchange of information, ideas and solutions. Members meet monthly to address local, regional and national

issues that are faced by franchisors and franchisees.

The three new board members join these previously-serving executives: Jim The Southeast Franchise Forum (SEFF) has elected three new executives to its 11-member board of directors for the 2015 year: Rick Batchelor, Dave Bridges and Tray Doster.

Rick Batchelor is the CEO/owner of Qiigo, a company specializing in lead generation, reputation management and local listings strategies for franchises, national brands and multi-location businesses.

Dave Bridges, CIC, is president of The Leavitt Group’s Atlanta office and is

executive vice president of the company’s affinity programs division.

Tray Doster is senior manager of franchise development for Zaxby’s Franchising, Inc. He has been an executive with the brand since 2007, is responsible for franchise related events and has assisted in granting more than 550 franchise agreements for Zaxby’s.

The Southeast Franchise Forum (SEFF) is a regional organization established to foster professional relationships

Squire (chairman - Firestorm), Clarissa Bradstock (vice chairman - Any Test

Franchising), Rupert Barkoff (secretary/

assistant treasurer - Kilpatrick Townsend & Stockton), Sheryl Cassity (treasurer/

assistant secretary - Grant Thornton), Stan

Friedman (FRM Solutions), Tim Goodman (Focus Brands), Joe Lindenmayer (TSS Photography), and Dave McDougall (Backyard Burger).

For more information, visit www.sefforum.com

The Joint Assembles TopNotch Management Team The Joint Corp. (NASDAQ: JYNT), a national healthcare franchisor of chiropractic clinics, announced it has hired a new Chief Financial Officer and elected two new board members.

The Joint’s new CFO is Francis T. Joyce, CPA. Joyce was formerly the Executive Vice President, Chief Financial Officer and Treasurer for Mistras Group Inc. He started his career with KPMG in New York.

New board member William “Bill” Fields is a retail industry veteran who began his 25-year career with Wal-Mart as a store manager. Wal-Mart Founder Sam Walton later handpicked Fields to be his assistant.

Fields went on to hold numerous senior

Franchising USA

executive positions. He left Wal-Mart in 1996 as President and Chief Executive Officer of Wal-Mart Stores Division.

“I decided to join The Joint Corp.’s board because I was impressed by the caliber of the management team,” Fields said. “John Richards (CEO) and David Orwasher (President/COO) both have impressive retail service pedigrees that include helping catapult Starbucks’ sales. I believe The Joint’s revolutionary patient-centric approach, coupled with its commitment to affordability and convenience, makes it a disruptive force in the industry.”

DaVella’s key clients included PetSmart, Discount Tire, Subway and Ann Taylor.

The Joint’s other new board member is Ron DaVella, a retired audit partner from Deloitte, where he worked for 34 years.

For more information visit: www.thejoint.com/franchiseopportunities.aspx

The Eco Laundry Company Launches New Franchise Program Eco-friendly concept seeks to redefine the laundry and dry cleaning industry The Eco Laundry Company, an environmentally conscious laundry and dry cleaning brand, launched their franchise program to grow throughout the New York and the Tri-state area.

Established in 2010, the company works to create awareness about sustainability and social change. Headquartered in New York City, the franchise maintains a second location in Buenos Aires, Argentina, where founder and CEO Phillipe Christodoulou originally launched the brand.

“Our mantra is: do the greatest good for the greatest number of people,” says Christodoulou. “With that in mind, we believe franchising is the best way to share our philosophy of ‘happytalism’ with people around the world.”

The brand made a name for itself as a place where customers can have clothes dry cleaned and washed without toxic or environmentally damaging practices. It’s a safe and sustainable alternative to the industry norm.

The Eco Laundry Company is the world’s first laundry company

to be certified B Corporation and the first to require franchisees to obtain the certification. B Corps are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance.

“Franchisees will be guided through B Corp certification,” adds coowner Jean Calleja. “This will help us distinguish our brand both in the dry cleaning industry and the franchise community as a whole.”

To learn more about franchise opportunities with this growing eco-friendly concept, please visit: www.ecolaundrycompany.com

My Elder Advocate Launches Franchising Program to Meet Challenges of Elder Boom

The United Sates is entering an elder boom with the number of Americans aged 65 years and up expected to double in the next 25 years.

To meet the unprecedented care demands of aging Americans, My Elder Advocate

has launched a national franchise program.

The company works with elders and their families to guide them through the complex health care system, advocate for their rights and solve crises. My Elder Advocate is the only franchise of its kind to provide comprehensive support.

Common services include care planning as well as preventing nursing home abuse and evictions.

My Elder Advocate is currently seeking franchisees to develop a dozen locations throughout New York, New Jersey, Connecticut, Pennsylvania and Florida.

No experience in elder care is necessary

because My Elder Advocate uses a patentpending execution methodology to quickly turn franchisees into experts.

For entrepreneurs eager to help older adults obtain quality health care, the elder care industry represents a lucrative, highly in-demand business opportunity.

The elder care services industry will reach $319.5 billion by 2016, according to research firm The Freedonia Group.

Informally, Americans spend $522 billion on caring for aging friends and relatives, according to a 2014 study from the RAND Corporation. www.myelderadvocate.com

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what’s new!

Woof Gang Bakery Opening First Corporate Stores

supplies and grooming, this location will include a pet wellness center offering vaccinations, dental cleaning and other pet wellness services.

A third Savannah location and two Key West, Florida corporate stores also will open by summer of 2015. The Woof Gang Bakery store on the famous Duval Street in Key West will officially be the southernmost pet store in the United States.

Woof Gang Bakery is opening its first corporate-owned stores, with five locations open by summer 2015.

These five new corporate stores will join 20 new franchise locations opening this year. The corporate stores located in

Savannah, Georgia and Key West, Florida

will serve as support centers for franchises in those regions.

The first corporate store will open in March in Savannah’s historic downtown City Market. The second corporate store opening in Savannah will be a Woof Gang Bakery, Grooming & Wellness Center in the city’s downtown. In addition to pet

“We’re thrilled to be positioned to grow the Woof Gang Bakery infrastructure by adding corporate stores to the portfolio.

With a total of 75 franchise locations open by year end, this enables us to provide a higher level of support across all markets,” said Paul Allen, CEO of Woof Gang Bakery.

According to the American Pet Products Association, approximately 82 million homes in the U.S. own a pet. Americans will spend more than $58 billion this year on pet supplies and care. www.woofgangbakery.com.

Wienerschnitzel Hires Doug Koegeboehn as CMO Quick Service Restaurant Branding Expert Joins Corporate Team newly-formed Visionary Department, a forward-thinking marketing division dedicated to building brand loyalty among younger generations.

Wienerschnitzel, the world’s largest hot dog chain, announces the appointment of Doug Koegeboehn as Chief Marketing Officer; joining the Irvine-based company with more than 20 years of marketing experience in the quick service restaurant industry.

Koegeboehn will lead brand, marketing, digital, menu, and overall communications strategy efforts. He will also oversee the

Franchising USA

Koegeboehn begins his new role, already with decades of Wienerschnitzel brand experience, most recently serving as Group Account Director at DGWB Advertising, Wienerschnitzel’s advertising agency of record based in Santa Ana, California.

Beginning on the Wienerschnitzel account in 1995, his marketing support runs the gamut, from developing annual ad plans and promotions, to menu strategy, and even dreaming up new products. While at

DGWB, Koegeboehn also led nationallyrecognized accounts including California Avocado Commission, Yogurtland, Dole, and El Pollo Loco.

“I am beyond excited about my new role on Wienerschnitzel’s management team because I absolutely love the brand and I’m committed to helping take this beloved iconic brand to the next level,” said Koegeboehn.

Koegeboehn is a graduate of California State University, Fullerton, and currently resides in Aliso Viejo with his wife and two children. www.wienerschnitzel.com

double-digit gains for Captain D’s Captain D’s is the leading national fast casual seafood restaurant, with 520 restaurants in 25 states, plus military bases around the world.

Captain D’s has been offering its customers high-quality seafood at reasonable prices in a welcoming atmosphere for 45 years.

The brand experienced growth in 2014 with a fourth-quarter same-store sales increase of 5.7 percent and a 4.1 percent systemwide same-store sales increase for the year, and has plans to continue its mounting growth strategy during 2015, the first opening planned for the second quarter in Florida.

Captain D’s improvements, including an upgraded menu with new fire-grilled items and restaurant redesign which exudes a vibrant coastal atmosphere and enhances the Captain D’s experience, have driven sales growth across the United States.

With several locations in Tennessee, Georgia, West Virginia, North Carolina, South Carolina, Florida and Kentucky experiencing double-digit gains over last year.

Captain D’s prides itself on delivering an unmatched experience for guests by providing unparalleled service, warm hospitality and an upgraded, diversified menu of freshly prepared seafood options. www.captainds.com

expansion for Red Roof Inn® Young Franchise Owner Zane Varvel helps Red Roof expand in the U.S. with it’s 400th hotel

result of service enhancements and hotel innovations and as a result has been aggressively expanding across the U.S. and internationally. The Council Bluff property joins a network of 399 properties in forty states in the U.S.

The property was bought by ambitious new franchise hotel owner, 34-year-old Zane Varvel and his family business Diggs Inns LLC. In his role as vice president of Warmbrodt Hotel Investments Varvel has worked with the Red Roof real estate team for over seven years as a consultant and broker, and says he was really impressed with how strong the brand performed.

The Council Bluffs property has 100 guest rooms, an indoor pool and hot tub, free WiFi and flat-screen TVs. The Inn is undergoing a NextGen renovation with the goal of turning it into a Red Roof Plus+ property within a few years. It’s centered in the Manawa Power Center Business Park, minutes from the Henry Doorly Zoo, Ameritrade Park and the Mid-America Center. The metropolitan Omaha area, which includes Council Bluffs, is Varvel’s hometown.

Red Roof has experienced intense and aggressive growth this past year as a

Learn more or book a room: www.redroof.com

Red Roof Inn®, continuing its impressive growth, has opened its 400th hotel in Council Bluffs, Iowa.

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S tratus B uilding Solu tuions

on track Stratus Building Solutions thrived as an innovative franchise company in the Commercial Cleaning Services industry, gaining top recognition from Entrepreneur Magazine in 2010 & 2011 for #1 Fastest Growing Franchise, three Top Ten Spots in the Franchise 500, and ranking in the Franchise Times Fast 55 amongst others.

The original founders had brought their experience and expertise from companies within the industry, where they provided their own franchises’ a superior, successful business model. With exponential growth and a proven plan, Stratus Building Solutions was bound for the top, only to be cut short in 2012 by a lawsuit which slowed down their efforts.

Franchising USA

New Beginnings The acquisition of Stratus Building Solutions was completed the beginning of February 2015. Three business partners who connected through ownership of their own Stratus Master Franchises, Afshin Cangarlu, CEO, Foad Rekabi, CTO and Channen Smith, COO purchased the company. All believed in the success that can be gained from the Stratus business model, and have profited greatly from it. Cangarlu and Rekabi together own numerous regions in the Los Angeles area, while Smith began in Denver and has grown to own six Masters across the nation.

“Our goal is to reintroduce Stratus and put it back on the map and restart growing the company,” Cangarlu said. “We want to give it a fresh start with new management and commitment for growth.”

That commitment was demonstrated to the existing Master Franchises at the National Conference held in February 2015. With introduction of a new Enterprise Resource System (ERP) to help the franchises manage their entire businesses from sales to operations, new plans for marketing and re-branding the

company, and demonstrated dedication to provide the best support possible to its master offices, Stratus Building Solutions has reestablished its forward charge for growth.

The Stratus Model Stratus’ business model is what makes it truly stand out as a franchise, Cangarlu states. There are two levels of franchise opportunities, the regional Master and the Unit Franchisee. The company’s Master Franchises control their own exclusive, licensed territories. The Masters operate as Franchisors and are responsible for providing sales, marketing, training and managing the individual Unit Franchisees who, rather than having territories, work on an accounts provided to them.

Another unique trait of Stratus is the multiple recurring revenue streams model. On the Master level, the structure of acquiring customer accounts that are assigned to their Unit Franchisees to provide cleaning services creates a supportive cycle of income for the Master office and their Unit Franchisees.

The scalability of the model has also been touted by existing Masters as an

“Businesses will always have to be cleaned.

During the recent recession, we only saw a slight downturn in customer sales but only in our special services, not in the general janitorial service sales.” economically efficient benefit.

“As you doubled your business, you did not need to double your expenses. Your marginal costs and fixed costs didn’t really increase at all as your grew.” --- Greg Fishman, Austin, TX Master The Commercial Cleaning Industry is also distinctive in providing a continuous income even during an economic downturn, states Cangarlu. Labeled by many economists as a recession proof industry, in recent years this statement became tried and true for Stratus business owners: “Businesses will always have to be cleaned. During the recent recession, we only saw a slight downturn in customer sales but only in our special services, not in the general janitorial service sales.

During this time, franchisee ownership actually increased – people had lost their jobs and were looking for an affordable way to get into business for themselves.”

--- John Coleman, Philadelphia Master The commercial cleaning franchise industry will always have customers.

Buildings, offices, clinics, schools and many more businesses need to

continuously be cleaned and maintained.

Building managers and owners must conform to new cleaning standards and regulations and an ever increasing number of these businesses outsource their commercial cleaning for a cost-effective way to assure their business stays clean and healthy. The commercial cleaning industry will continue to be one of the fastest growing segments of the economy for the next several years, reaching well over $150 billion in revenue.

Franchising Currently, Stratus has over 2,500 Unit Franchisees spread throughout the United States in over 25 major cities.

The company is looking both for Master Franchises to cover specific available territories, such as in Atlanta, Miami and Seattle, as well as Unit Franchisees in all active territories.

Stratus Building Solutions offers a unique, low risk opportunity for individuals looking to go into business for themselves.

Providing the most affordable franchise investment options in the industry, owner operated franchisees have the opportunity

to begin their business with an initial investment as low as $2,000, with a customer account base included. Stratus has eliminated most of the typical risks faced in owning your own business.

Upon becoming a Unit Franchisee, the regional office will set up training, which consists of various different sessions, both classroom based and on-the-job. “At the end of the training, our franchisees become certified and that’s when we begin assigning them their own customer accounts to service,” Cangarlu explained.

“I recommended a unit franchise to my own parents. They purchased one which allowed them to retire very comfortably as they have employees doing the work for them.” - Jared Thomas, Utah Master What separates Stratus from its competitors, the CEO said, is the company’s focus on not only quality of service to its customers but on being environmentally friendly, too. With the industry’s only Green Seal Certified, non-toxic, biodegradable branded line of cleaning chemicals, Stratus Green Clean, not only is more attractive to a growing customer base, but also assure a safe work environment for Stratus Franchisees.

With a new ownership focused on the future comes a new beginning for Stratus Building Solutions, one concentrated on growth and opportunity without restraints.

Article written by Rachel Frazier www.stratusbuildingsolutions.com

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pro fil e

Smoke’s Pou tiner ie

The World’s Largest & Original POUTINERIE Smoke’s Poutinerie is the World’s Largest & Original Poutinerie, focusing exclusively on Poutine (Loaded Fries).

Fresh Hand-Cut Fries, Squeaky Cheese Curds & Smoke’s Signature Gravy complete this Iconic Canadian dish, along with unlimited combinations of gourmet toppings like double-smoked bacon, flat iron steak, grilled chicken, caramelized onions, sautéed peppers and many more mouthwatering options.

Ryan Smolkin, Founder of Smoke’s Poutinerie launched the first location in Toronto in 2009 and has since opened more than 100 locations across Canada in six short years, well on the way to GLOBAL DOMINATION! The Smoke’s Poutinerie Brand features

Canadiana, lumberjack plaid and glam rock, bringing you back to the nostalgia of the 80’s. Guests feel the excitement and power of the Brand from the moment they arrive and leave with an absolutely unforgettable experience.

The Franchise is now focused on expansion into the U.S., Sports & Entertainment and International Markets.

The first official U.S. location recently opened in Berkeley, California where over 1300 customers were lined up around the block. The U.S. launch also proved to be extremely successful within the Smoke’s Poutinerie social media channels where 3100 people raved about the opening, 1 million impressions were made on Twitter and over 3000 fans engaged directly with the Brand – all achieved in one day! Next up, Las Vegas, Hollywood, New York, Boston and numerous other cities and states revved up to jump on the Gravy Train.

Amid the rapid expansion of traditional Franchise units, Smoke’s Poutinerie has also been busy building a thriving Sports & Entertainment division. “That’s a huge focus for us,” says Smolkin, explaining that the Brand’s unique Poutine concoctions are now being devoured by hungry sports fans who have made Smoke’s Poutinerie the #1 Food Vendor in a number of top stadiums in Canada. Smolkin is working diligently on expanding into the U.S. Non-Traditional Market with units ranging from Arenas & Stadiums to University Campuses, Amusement Parks and even Airports.

Smolkin believes that in order to maintain the success it is important to select Franchisees with a good personality, positive energy, common sense and a strong work ethic. The Franchisee needs to be a forward thinking Entrepreneur who is ready to “live and breathe our Brand and Culture”.

Territories are available throughout the U.S. , with little to no direct competition exclusively selling Poutine. It is the Largest & Original Franchise of its kind in the World and will continue to implement fresh concepts and ideas to remain the leader in today’s market. Franchisees can expect guidance on negotiating leases, intense training, weekly communication and help with driving labor and food costs.

The most rewarding part of Smolkin’s experience is seeing dedicated owners run successful Smoke’s Poutinerie locations which lead to further opportunities for expansion. With a reputation for being Fastest Growing Company in Canada and Canadian Company of the Year by Food Service & Hospitality Magazine, Ryan Smolkin is ready for the next step, to open multi-units and area development around the World. GLOBAL DOMINATION! For more information, please visit www.smokespoutinerie.com. franchises@smokespoutinerie.com

Franchising USA

THE WORLD’S LARGEST & ORIGINAL POUTINERIE FASTEST GROWING & COMPANY OF THE YEAR IN CANADA NOW FOCUSED ON U.S. EXPANSION POUTINE & LOADED FRIES VOTED TOP FOOD CATEGORY TO HIT THE U.S. IN 2015 FRANCHISES@SMOKESPOUTINERIE.COM

ex per t advice

Anne Dee, CPCU, Executive Vice President, Hub International, Ltd.

Safeguarding Your Business From Cyber Risks “With every “click” of the purchase button, shoppers put themselves at risk of having their personal information stolen.”

Anne Dee

One of the largest retail data breaches in U.S. history occurred at Target Corporation during the 2013 holiday shopping season, exposing the personal financial information of 40 million shoppers.

While this highly publicized data breach affected a well-known retailer, the threat to franchisees of all sizes should not be ignored. Any franchise is vulnerable to data breaches, even if it follows strict data security protocols.

Cyber sales are a critical and growing source of annual revenue for many

Franchising USA

franchises. With every “click” of the purchase button, shoppers put themselves at risk of having their personal information stolen - a risk that is typically absorbed by the businesses from which they are buying.

EVALUATE THE VULNERABILITIES TO YOUR FRANCHISE THAT WOULD ALLOW A CYBER-ATTACK ON THAT DATA, AND ASSESS THE IMPACT OF THE ATTACK.

To protect your business against cybercrime, it is essential to take a proactive approach and have the right kind of insurance coverage. Every franchise has its own unique needs and risks, but there are some general guidelines outlined below that can help manage that risk and protect a store and its online commerce:

Develop countermeasures to prevent and mitigate damage in the event of a cyberattack by having sound response strategies in place. Such measures include:

IDENTIFY THE CRITICAL INFORMATION A BUSINESS HAS, NEEDS AND STORES Analyze the threat to that critical information. Questions to ask include:

• Evaluating the security settings on software, browser and email programs.

• Using one computer for online banking needs and using SecureID protection.

• Monitoring use of mobile devices and public Wi-Fi access for employees.

• Storing critical information through a remote server.

• Is sensitive customer information stored on site?

DEVELOP THE PLAN, IMPLEMENT IT AND COMMUNICATE IT TO LEADERSHIP AND EMPLOYEES SO THEY KNOW THEIR ROLE AND RESPONSIBILITY. TEST THE PLAN PERIODICALLY AND REVISE AS NECESSARY.

• Do you have adequate protection if your website or online sales tools are compromised?

While it is important to develop and implement safeguards against cyber criminals, these plans are most effective

• Does your franchise have an online sales component? If so, are you protected against the increasing threat of cyber risks?

ex per t advice “Thus the fact that some franchisees are closing can be a great upside to you while concurrently being a tragedy to the defaulting franchisee.”

when combined with the proper insurance coverage designed to address cyber risks. Coverage typically includes liability protection for when customers or others who have been affected hold you responsible for information stolen during data breaches or other network intrusions.

A cyber policy also can include coverage for forensic investigation, litigation and remediation expenses associated with the breach as well as regulatory defense coverage, crisis management or public

relations expenses, business interruption

Anne Dee, CPCU, is the Executive

and cyber extortion.

Vice President, Strategic Planning and

Cyber risk is a very real issue that can

Integration for HUB International

effect on the business’ ability to operate.

brokerage. HUB helps franchises

as well as obtaining the proper insurance

centralized insurance program for

business’ bottom line is protected.

of group buying to provide the best

impact your franchise and have a lingering

Limited, a leading global insurance

Taking the proper risk management steps,

become properly insured, and its

coverage, will help ensure that your

franchises takes advantage of the power

1. Ponemon Institute Appendix 1: Summary of Lost Laptop Framework

possible coverage – at the lowest possible cost of risk.

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spotlig h t o n serv ice

I FPG

One specific group is taking a new approach to facilitating the sale of franchises With a membership that Founder Don Daszkowski says numbers approximately 750, the International Franchise Professionals Group (IFPG) has the requisite knowledge and experience to connect potential franchisees with franchises that suit them using franchise brokers.

In a recent interview from the IFPG office in New Jersey, Daszkowski said the IFPG membership consists of approximately 45 percent franchisors, 45 percent franchise brokers, consultants and business brokers and 10 percent vendors, and other franchise professionals like attorneys and lenders.

In operation for almost three years, the IFPG primarily connects franchisors and franchise brokers and consultants to help facilitate the sale of franchises to deserving entrepreneurs.

It also helps with any tasks involved with the sale of a franchise to a client, whether that’s lending, accounting, attorney services, lead providers or anything else that may be required to sell a franchise to a franchisee.

Franchising USA

As a membership-based organization, the IFPG does not charge any kind of upfront fee to their members. Instead, it charges a small monthly membership fee to all members. IFPG brokers and consultants are paid a commission every time they sell a franchise from the IFPG portfolio and IFPG vendors help both parties to facilitate the transaction. Each member is working for the same cause which is to award new franchisees.

Daszkowski said there is a need for this service because the franchise market seems to be leaning more and more toward the use of franchise brokers. For example, Menchie’s Frozen Yogurt is an IFPG Member and Don recently spoke to Michael Mudd the Senior Development Manager about his experience growing Menchie’s by using brokers. Michael stated “We have approximately 500 franchisees, which own 475 locations and another 315 in active phases of development. 230 of these franchisees were recruited with franchise consultants accounting for roughly half of our franchise system.”

Menchie’s is seeing tremendous growth and roughly half of their franchise system was built using brokers and consultants.

“The value of working with franchise brokers has been tremendous. The relationships we’ve developed have accounted for approximately 50% of our system. We look forward to continuing to bolster those relationships in the future, as they are truly a dynamic attribute to our

expansion,” said IFPG Member and Vice President of Franchise Development for Hand & Stone Massage & Facial Spa, Bob McQuillan.

“I really feel that the industry is accepting working with franchise brokers and franchise consultants and seeing that it is a big part of their business,” Daszkowski said.

The biggest differentiator between the IFPG and its competitors, the founder said, is the IFPG does not train brokers and consultants, plus it does not share in any commissions paid to brokers. Because it does not have to train brokers, the IFPG can eschew the large fees other franchise brokerages charge. The IFPG can focus 100% percent of their time supporting their members without the worry of recruiting and training new brokers, while the brokers can have the freedom to work independently and keep 100% of their commissions.

But that’s not to say that the IFPG’s brokers are untrained. Quite the contrary, not just anyone can be a broker at the IFPG. They are screened and only the ones who are seasoned and experienced professionals get accepted into the IFPG, meaning its franchisor members know they are dealing with the best brokers in the business.

“We’re more an industry changer than we are a competitor of anyone,” Daszkowski said.

“We’re more an industry changer than we are a competitor of anyone.”

Tools for Brokers From his experience in the past working with business brokers, the IFPG founder knew that franchise brokers needed better tools to be able to do their jobs successfully. Daszkowski realized that there could be better tools developed to help franchise brokers target specific franchise opportunities for their clients.

This prompted him to develop the IFPG Lead Feed. If brokers have a client and they can’t find a specific franchise that their client is interested in, or can’t find one that’s a good fit for them or in the right territory, they can now put their client’s info into the IFPG Lead Feed. Once the potential franchisee’s information is in the Lead Feed, franchisors can then scroll through these clients and see if any of them might be a good fit for their franchise. This technology also alerts the franchisor of these specific matches.

A profile that a broker submits to the Lead Feed would provide information like the potential franchisee’s work history, how much capital they have at their disposal, where they are looking for a franchise and what type of business opportunity they are interested in.

“That’s just one of the things we’ve done to help franchise brokers more efficiently communicate with franchisors with the hopes that they can close more deals with some of the technology that we provide,” Daszkowski said.

With the franchising industry seemingly leaning more toward the use of franchise brokers, the IFPG seems in a good position to keep growing and keep helping connect franchisors with franchise brokers so they can find the right franchisees to expand their businesses. www.ifpg.org

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Franchise Gurus

to Start Following in 2015 Sometimes companies get so caught up in social media strategy and what readers are seeing on the company social accounts that they forget the real meaning of social media and what it has to offer.

While having a social strategy for your franchise company is great (essential really), it’s important to remember how

Franchising USA

social media can help you as a learner.

These networks are excellent places to keep up with the latest news in your industry and learn something from experts—you just have to know who to follow.

Top Franchise Gurus to Follow on Social Media This New Year Believe it or not, finding franchise personalities on social media is not quite as easy to do as you would think. You can find plenty of authoritative voices in the SEO industry or business in general, but those who specialize in franchise

management are few and far between.

Nonetheless, there are a few who are doing a great job offering insightful information.

Below are some of the top influencers in the franchise industry and why you should follow them for franchise discussions and resources.

Do you know of any great franchise personalities or influencers on social media? Do you know of any companies that publish good franchise content on social media? Let us know your thoughts. editor@cgbpublishing.com

1. Joel Libava Works and coined the phrase The Franchise King.

Libava has been one of

the top gur us in the ind ustr y for quite some to publish insightful arti cles on franchise topics all across the web. He is constantly sha ring his arti cles and others on his social profiles. Wh en it comes to social me dia, Libava knows wh clicks and what is rele at vant to his audience, so he’s a great person to follow if you’re lookin g to discover new info rmation and resources.

Twitter: @Fran BizPla ns Google+: +TheFranchise King YouTube: Joe Libava time, and he continues

3. Alan George Founding team memb er of FranchiseMarketingSy stems.com.

George has been on the

franchise scene for a lon g time and continually pops up on different blo gs and in social media . He offers consulting advice from both sales and ma rketing aspects and has over ten yea rs experie nce in building and develo ping franchise brands . If you’re a little bit mo re advanced and looking to expand, you’ll find some good stuff here.

Twitter: @Alan FranM arkSys Google+: +Alan George Franchise YouTube: Alan George

5. Maria Carty-Mole

Online Editor of Franc

You can usually leave

hise Direct

it to an online editor to

have a great social me dia doesn’t have quite as ma ny followers as the oth ers, but Franchise Direct see ms to be up and com ing and something we’re going to see more of in 2015. She posts great resources about franchi se development and she dra ws from sources other than her own, so she’s someone to keep on you r radar. presence. Car ty-Mole

Google+: +Maria Car ty-Mole YouTube: Ma ria Car ty-M ole

2. Paul Segreto.

CEO of Texas-based

Franchise Foundry

I first hea rd of Segreto because he was honore d as a Top 100 Champ in the 2014 Small Bus ion iness Influencer Award s. He has over 25 yea rs experience in the fran chise sphere and puts a focus on all different of franchise managem levels ent and ownership. You ’ll find that he offers a of advice based on stra lot tegies he has built wit h franchise companies the past, and he is incred in ibly knowledgeable abo ut a var iety of franchi segments.. se Twitter: @PaulSegreto Google+: +Paul Segreto , CF E YouTube: Paul Segreto , CF E

4. Christopher Conn er

Franchise Marketing Sy

Conner has experience

stems Development

that ranges across all fields of franchise exp ertise, and according to his bio has worked with multip le International franchi se and licensed organizati ons throughout the Un ited States, Middle Eas t, India, and Europe. He posts on social media about several different franchise topics and is even a contributor righ t here on Franchising USA Magazine. His braggi ng rights: Sold 603 Fra nchises in 2012.

Google+: +Christopher Conner YouTube: Chr istophe r Conner

6. Chris Brewer

Online Marketing Gian t

Brewer does not special ize in franchise ma rke ting or management like the other four gur us on the list, but you’ll find that his information and connections are ver y much connected wit h the franchise industr He sha res more genera y. l business information about online presence (pa rticula rly SEO) tha t can be transfer red ove r to franchise lessons. you’re sur fing around If social media looking for franchise influencers and topics, you’ll like find Brewer.

Twitter: @momarketer Google+: +ChrisBrewer YouTube: Chr is Brewer

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ex per t advice

Andy Roe, General Manager, SurePayroll Inc.

The Skills Gap is Costing Employers

Are You Adjusting?

Companies are losing substantial amounts of money because of a skills gap that keeps important positions unfilled — prompting employers to step up efforts to fill the voids.

Franchising USA

The findings of a recent important survey might surprise the general public. An assumption often made about companies is that if a job goes unfilled for a short period, it simply means the company saves a little money.

However, that assumption is usually

“There is a growing disconnect between the skills employers need and the skills that are being cultivated in the labor market toda.” cannot find qualified candidates.

The reasons for the losses, according to the companies: • Lower morale due to employees shouldering heavier workloads – 41 percent • Work does not get done – 40 percent • Delays in delivery times – 34 percent • Declines in customer service – 30 percent • Lower quality of work due to employees being overworked – 30 percent • Employees are less motivated – 29 percent • Loss in revenue – 25 percent • Employees making more mistakes, resulting in lower quality of work – 25 percent • Higher turnover because employees are overworked – 22 percent CareerBuilder CEO Matt Ferguson says the trend is not transitory.

incorrect. The opposite is often true — companies actually lose money because of the lost productivity when crucial positions are vacant. Because companies have emerged lean and mean after the recession, it is rare that positions are unnecessary and can be easily absorbed.

The survey, conducted by CareerBuilder last fall, showed that on average a company loses more than $14,000 for each job that stays vacant at least three months.

And that more than half of employers (54 percent) reported openings for which they

“The skills gap is an issue that is not going away anytime soon,” said Ferguson.

“There is a growing disconnect between the skills employers need and the skills that are being cultivated in the labor market today. This causes workers and companies to miss out on realizing their full potential and, in turn, causes the economy to fall short of its potential.”

Larger corporations are stepping up efforts to retrain workers to give them the skills necessary to fill the vacant jobs and in addition the corporations are working closely with colleges, junior college and other organizations to support their training efforts.

Part of the problem, according to the survey, is the rapidly changing pace of technology. For example, there is a shortage of petroleum engineers because the boom in new technologies to extract

Andy Roe

oil and natural gas occurred faster than colleges and universities reacted to the trend.

However, even jobs that might require less training are becoming increasingly complex, such as customer service. These vital employees are not just answering phones, they’re working with intricate computer systems and handling sensitive issues for your customers.

The survey showed that companies were increasingly flexible about retraining workers on the fly and investing more money into training programs.

As a franchisee, you have to work with your franchisor to secure the resources needed to train new employees. Not only is this valuable for developing your employees and making your franchise an attractive place to work, the research suggests it may be a necessary adjustment for the health of your bottom line.

Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company.

SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with1-10 employees. You can follow Andy on Twitter @AndrewSRoe. Learn More at www.surepayroll.com and http://blog.surepayroll.com.

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focus

Pop A Lock

Pop-A-Lock

always on the lookout for strategic partners From fleet management to employee benefits, the company has a number of programs that it can use to partner with other franchise businesses.

Based in Lafayette, LA, Pop-A-Lock’s business is security.

“Our job is to protect what matters most to people; their families, their homes and their businesses and we do that with a wide variety of security products and protections,” company CEO Don Marks said during a recent phone interview from the Pop-A-Lock headquarters.

Don Marks

Pop-A-Lock loves strategic partnerships and is always looking to partner with other franchise businesses.

Franchising USA

As for those programs that help PopA-Lock build its coveted strategic partnerships, one example is Pop-A-Lock Smart Track. Smart track confirms service requests, keeps track of the vehicles via GPS and sends updates to customers via their smartphones that include confirmation of their orders and even photos of the driver.

With Pop-A-Lock Smart Keys, the company is able to duplicate and replace keys on the spot for vehicles including those that utilize Smart Key technology.

As for employee benefits, employees with partnering franchise businesses can get a Pop-A-Lock Smart Security Audit, which provides expert advice on how best to beef up physical security of their home.

And, since security is their business, Pop-A-Lock also provides site security to a lot of franchise businesses through its Pop-A-Lock Smart Security Systems, which encompass the most state of the art security technology; and Pop-A-Lock Smart Locks, which enable people to control their door locks and other systems in their homes or business via the internet from virtually anywhere.

But, it’s not just franchise businesses that Pop-A-Lock has useful programs for, they also provide the PAL Saves Kids service, which is a free service to rescue children who accidentally get locked in vehicles.

Through this program, the company has rescued about 350,000 children thus far.

Not only does the company have these programs to help it offer all kinds of security related services, but it has its finger on the pulse of security by sitting on a security committee with major vehicle

“Pop-A-Lock has two types of franchisees that can join the company. One is an owner-operator for small markets and the other type would be a senior executive or investor for large markets that pull in a lot of revenue.” manufacturers, companies in the insurance industry and even working with the National Insurance Crime Bureau.

Beginnings Pop-A-Lock has come a long way since its inception in 1991. Back then, the Louisiana Sheriff’s Department used to unlock vehicles if people were locked out of them. However, as vehicles became more sophisticated and more difficult to unlock, the Sheriff’s Department found that it was not a good use of its time to unlock vehicles.

Seeing a business opportunity, two Louisiana Sheriff’s Department officers, Carl Vincent and Steve Gremillion, started Pop-A-Lock. The company started franchising in 1995 and is now in about 8,500 communities across North America.

From its origins of unlocking vehicles, it was easy to expand into general security.

It’s something that every home and business needs for protection and often to comply with regulations, Marks said.

Brought in as a business consultant, he came on board in 2004 and ushered in an era of rapid expansion for the company.

Marks said he decided to get involved with Pop-A-Lock because it has sustainable, strategic competitive advantages.

“If you don’t have something that others can’t or won’t do, then eventually you become a commodity or you go out of business,” he said.

The security industry was extremely fragmented at the time and he saw an opportunity to consolidate it and become the leader in the industry through the adoption and development of new technology, the ubiquity of franchising, strong branding and building those strategic partnerships.

Potential Franchisees Pop-A-Lock has two types of franchisees that can join the company. One is an owner-operator for small markets and the other type would be a senior executive or investor for large markets that pull in a lot of revenue.

The company services markets of all sizes, Marks said, from cities of millions of people down to small communities of 30,000.

The process of onboarding new franchisees is an involved one, the Pop-ALock CEO said, as the company wants to ensure potential franchisees are a good fit and will succeed with the company. Once they are vetted and welcomed aboard, they travel to Lafayette to meet the entire team and see Pop-A-Lock in operation.

They are then thoroughly trained either in Lafayette or at a Pop-A-Lock franchise with a certified instructor.

Once a Pop-A-Lock franchisee is up and running, they are privy to a vast amount of support from the company.

“We really do A to Z and I can tell you after 35 years in various aspects of franchising, I’ve never seen as much support as we do,” Marks said.

The company has a full system that runs almost every aspect of the business, plus they have their own in-house software development group to continually improve their security software. Support includes 24/7 internet support and live call operators, public relations, operational assistance, new owner calls, periodic business building calls, periodic operation calls and in-house marketing.

While Pop-A-Lock is in almost every market across the continent, there are a few places where the company hasn’t

cracked, but it’s keen to get into. Los Angeles is one area where the company has set down some roots, but would like to expand further. The French-speaking part of Canada is another area where the company is keen to expand into, Marks said.

“We want to be ubiquitous,” he stated.

“We want to be everywhere.”

To that end, the company is in talks about possibly expanding beyond North America.

With so much to offer and virtually no competition, Pop-A-Lock seems poised to further develop and nurture even more of those strategic partnerships it so loves. www.popalock.com

Pop-A-Lock has brought home a bevy of awards since its inception in 1991. Some of the highlights inside the company’s vast trophy case include: • Entrepreneur Magazine # 1 in Service Category 2010-2014

• Entrepreneur Magazine Fastest Growing Franchises February 2013-2014 • Entrepreneur Magazine “Best of the Best” May 2012

• Entrepreneur Magazine Franchise 500 2011-2014

• Entrepreneur Magazine Top Home Based Franchise 2011-2014 • Franchise Research Institute World Class Franchise 2010-2014 • Entrepreneur Magazine Top Global Franchise 2011-2014 • Franchise Times Top 200

• BlueMauMau Top 25 Chains with the Happiest Franchisees

• National Minority Franchising Initiative 50 Top Franchises for Minorities October 2009 • Franchise Business Review Best of the Best: Top 100 Franchises for Veterans 2013 • G.I. Jobs Military Friendly Franchises 2010-2012

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ex per t advice

Mark Siebert, CEO, iFranchise Group

Franchising Spark in the Health and Beauty Industry

Do you think French fries and fitness, or pedicures and pancakes, have nothing in common?

Think again. All can benefit from franchising’s proven business model, which combines marketing, business, and operational best practices with the name recognition and economies of scale associated with a branded channel of distribution.

Mark Siebert

Franchising USA

Just like a franchised restaurant, a franchised spa, salon, or a dental or chiropractor office can duplicate its success in other locations based on an established system of operation, and by leveraging the capital and skills of independent franchise owners.

Franchising in health and beauty provides the same advantages that it does in other industries: 1. The customer benefits from an established brand that provides a standard of care they’ve come to expect.

2. The franchisee benefits from tested and streamlined office operations, advanced appointment scheduling systems, preferred vendors, and operational protocols. For medical or beauty professionals who want to concentrate on patient and client care and own their own business, franchising offers an attractive solution.

3. And the franchisor benefits, as in other industries, by allowing growth using someone else’s financial and sweat equity.

“A society focused on health and fitness has more people looking for outlets to cure what ails them, or maintain what doesn’t.” more new and return clients will visit these businesses .

kles Statistics tell a tale of growth in the health and beauty sectors It’s no secret the market for healthcare is growing tremendously. The aging population continues to feed the boom for services, as does a proliferation of new treatments. A society focused on health and fitness has more people looking for outlets to cure what ails them, or maintain what doesn’t.

In addition, revenue in the U.S. spa industry alone has grown from $12.3 billion in 2009 to $14.7 billion in 2013, with the number of spa visits increasing by 2.5% from 2012 to 2013. In the hair care segment, revenue is anticipated to grow at an average annual rate of 3.2%, to $58.7 billion by 2019. And as the economy continues to improve, it is expected that

Consumers who are putting their health, their bodies, and their dollars in this arena want some credibility behind a concept.

Consumer confidence is gained through tested systems and cohesive messaging – the building blocks of a franchise system.

Consider, for example, what Massage Envy® has accomplished through franchising. Massage Envy® opened its first spa in 2009 and grew to over 1,000 units today. The fundamentals of the Massage Envy® model were then used to franchise The Joint – the chiropractic place (500 units in less than 4 years) and recently Amazing Lash Studio (over 300 franchises in two years).

This year, all six massage franchises in Entrepreneur’s Franchise 500 improved over their previous year’s rankings with what the publication calls “a testament to franchising’s power to transform an industry.”

Getting the Prescription Right While there is growing acceptance and interest in franchising in the healthcare arena, the area of medical franchising, in particular, is significantly more complex than franchising a pizza parlor.

Franchisors have to consider Stark laws, laws prohibiting the corporate practice of medicine, HIPAA regulations, and Medicare anti-kickback statutes. With expert strategic planning and sound legal advice, franchise systems can be set up to both fall within the safe harbors of these laws and succeed at expansion.

Despite the complexity, it is important to bear in mind that many professional care franchises have already navigated these waters (for example, Pearle Vision®,

Comfort Dental®, The Joint® and Doctor’s Express®).

Laying the Foundation Just like restaurant, duct cleaning, or auto service franchises, the optical shop, lash extension spa, and hair salon franchise will need best-in-class franchise documentation such as operations manuals, training documents, strategic business plans, financial pro forma, and marketing and sales documents.

For beauty and healthcare companies considering franchising their business in a marketplace full of demand for well-polished concepts, knowing where and how to start the process can be a daunting task. The first advisor to be hired is the franchise consultant. Franchise consultants can provide objective advice about the franchisability of a business, and play a vital role both in the decision to franchise and in the ultimate franchise structure and expansion plans. Companies will also need to hire a franchise lawyer with experience representing emerging franchisors.

It’s important to consider that while franchising certainly requires an investment of time and funds, the cost of the services of professional advisors to get a franchise company going the right way is often less than the cost of opening one additional company-owned location.

Mark Siebert is CEO of the iFranchise Group, the nation’s leading franchise consulting firm. Within the health and beauty industry our consultants have worked with concepts in urgent care, home healthcare, dentistry, pharmacy, weight loss, nutrition, massage, optometry, hair care, tanning, skincare, lash extension, nail salons, spas, and fitness. For a copy of our whitepaper, “Franchising: A Business Expansion Solution for the Healthcare Profession,” please contact us at info@ifranchisegroup.com or (708) 957-2300.

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h e alt h and b e aut y fr anch ising

Featu re

health & beauty Every American consumer is concerned with health and beauty. In fact, products from this industry have become a staple in most people’s everyday routine.

Wake up and shower using soap and shampoo, then shave, maybe apply some make up, use deodorant and head out the door.

Health and beauty is constantly evolving with new discoveries, new consumer concerns and an ever-growing fan base, which recently includes the male customer.

Every channel, every billboard, every aisle at the supermarket is filled with products that help people look and feel their best.

It’s an engrained part of society and we are all hooked.

Once mainly concerned with the female population, the beauty industry is recently targeting men, covering a better range and quantity of costumers compared to the past.

Even when there was a significant strain on the American economy, sales for beauty products remained strong. It has become as necessary as food - people need it and people will find a way to get it, whether or not they can afford it.

Beauty covers a wide variety of businesses including hair salons, spas, cosmetics, fragrance and the list goes on and on.

While heath focuses on exercise, weight loss, food, vitamins and numerous other markets.

Cosmetics The history of cosmetics reaches as far back as 6000 years. It’s a international practice that is varied and dependent on culture and can be recognized globally throughout history.

From the red hot lipstick of the roaring twenties to the oil and honey practices of Ancient Greece, make up is a part of who we were and who we have become.

Today, cosmetics are the leading online business in the professional beauty market.

“The U.S. wa market in North billion in 2010,

Franchising USA

e r u t a y Fe With skin care products making up 31 per cent of the global cosmetic market.

Cosmetics are not secluded to make up but rather cover the care and upkeep of the entire body, including skincare, bathroom products and nails, for example.

The cosmetic industry is estimated to reach 13.91 billion US dollars by 2016 in gross product.

One of the most popular products in cosmetics is the anti-aging market.

The American Academy of Facial Plastic and Reconstructive Surgery targeted women between the ages of 45-60 to find out their thoughts on their personal process with aging and how they feel about the appearance of their face.

Women are mostly concerned with eliminated evidence that reveals their actual age.

According to the survey, 72 percent of the women had tried skin peels, 50 percent of them had had injections or fillers, and 15 percent of them had cosmetic facial surgery.

With an ever-aging population, it’s important to note that age bracket of consumers make up for a big percentage of the spending population and they are willing to pay for different procedures and products to help attain their goals.

The beauty industry continues to grow into a well-established online market.

With technology making everything more

as the largest “Better For You” America with sales of $50.1 accounting for 31.3 per cent of global value sales.”

accessible, beauty secrets and trends are being shared across the oceans and helping establish a global market. This access to a higher volume of interested customers makes the beauty industry a profitable consideration for franchisors.

Most franchises in this industry hold a well-recognized brand, allowing franchisors to become owners of an already trademarked product. Most businesses have become household names with a firm customer base who are loyal to the brand.

While on the other end, new and invigorating products are always being invented and added to the market, as well as services that are usually well received with such a huge and varied audience.

Health and Wellness products With the internet being a part of everyday life, consumers have the power to educate themselves to a whole other level and their new obsession is healthy food. People have easier access to information and have chosen to dig into the food industry to help satisfy their personal needs.

This area has seen rapid growth in the last few years, especially in newly developed markets. Between gluten-free products and organic foods, this industry is hitting a lot

of consumer’s specific needs and therefore increasing its worth.

With an aging population, a new target audience for this industry is people over 55 years of age. People are more concerned with maintaining their health at this age and are big buyers in the health and wellness market.

According to the US Census bureau there are approximately 76.4 million baby boomers throughout the States, making them a huge portion of the population.

With such a high percentage of people focused on the health food industry, a franchise in this field has an already well established fan base.

The U.S. was the largest “Better For You” market in North America with sales of $50.1 billion in 2010, accounting for 31.3 per cent of global value sales.

According to Fresh Market café, a wellbranded healthy fast food franchise, today’s consumer is more interested in nutritional options. People are also interested in where their food came from and franchises are using these details to help gain more customers. Fresh Market café values having a smaller carbon footprint and makes that information accessible to their customers, for example.

Franchising USA

h e alt h and b e aut y fr anch ising

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h e alt h and b e aut y fr anch ising

Featu re

The Weight Loss industry Although people are concerned with their health, they are more obsessed with weight loss and a quick fix. People have a tendency to identify healthy choices with weight loss and are willing to pay to get the results they are looking for.

According to the Centers for Disease Control and Prevention more than one third (78.6 million) people in the US are overweight. While in 1992, the US Food and Drug Administration stated that Americans spent an estimated $33 billion a year on diet programs and product, with a constant increase.

Franchises in this field can include services that help achieve change in weight and overall health, which include meal plans, pills, vitamins and nutritionists. For example. There are also clinics that focus on weight loss and lifestyle change.

The trend of aerobics in the 1980s helped establish exercise as a business opportunity. Fitness centers offer classes, treadmills, pools and trainers for a

Franchising USA

“People have a tendency to identify healthy choices with weight loss and are willing to pay to get the results they are looking for.� monthly cost, rather than having people dish out hefty amounts to purchase their own equipment. By 2015, 41 million Americans are members of a health club and with the obesity rate rising since the 80s, exercise and gyms need to remain accessible to most of the population.

This industry has recently gained a higher age range of members, from teenagers to seniors, since everyone is concerned with their health. As the audience broadens, so does the amenities within the centers, like kid minding areas, which allow businesses to become more appealing to a large sector.

Health and Beauty is all American. From lipstick to heavy weights, from deodorant to weight loss pills, Health and Beauty is a variety field that reaches people on a global level. All products and services are always evolving and will continue to remain a well-established industry in the lives of Americans.

About the author: After receiving an English Degree, followed by a Journalism Diploma, Gina 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:

Pet Franchising

Franchising USA

ex per t advice

Andrew Bob Kirschner, Cagnetta, Chief CEO, Operating Transworld Officer, Business Kids ‘R’ Advisors Kids International, Inc.

five Things You Should Know

before Purchasing a Child-Focused Franchise According to Child Care Aware of America, in 2014 there were more than 33.8 million families with children in the United States. Of those, 45 percent had children under the age of six.

As the U.S. economy continues to grow

following the recession, it appears many

Franchising USA

Americans are beginning to regain financial confidence to grow their families.

One example of a child-focused industry experiencing growth in conjunction with this trend is early child care and education.

Research from IBISWorld reports the child care industry in the U.S. is growing at an annual rate of 1.2 percent and totaled $48 billion in revenue in 2014. With the possibility of just under half of American families in need of early child care, many entrepreneurs may see the lucrative potential in this market.

However, the decision to enter into a

child-focused franchise, and especially the early child care business, requires special consideration and understanding of the market. The following are five points prospective franchisees should consider if they are evaluating such an opportunity:

This industry requires greater responsibility from franchisees Owning a child-focused franchise comes with a number of responsibilities, from maintaining the right insurance coverage, to adhering to the proper privacy regulations, to understanding a number

ex per t advice

Andrew Bob Kirschner, Cagnetta, Chief CEO, Operating Transworld Officer, Business Kids ‘R’ Advisors Kids International, Inc.

“In the case of early child care and education, the most successful providers hold themselves to higher standards for education and development.” of health and safety guidelines. But even more important, business owners are entrusted with parents’ – and society’s – most prized possessions. Keeping this in mind, a franchise-wide culture that puts the safety and well-being of children first and fosters open communication between employees and parents is critical to success.

You will be held to a higher standard There are several standards set at both the federal and state level that franchise owners must be familiar with. Federal standards include compliance with the Occupational Safety and Health Administration and the Security and Exchange Commission. However, the federal government does not mandate employee background checks, minimum training or regular site inspections, as these requirements vary by state.

In the case of early child care and education, the most successful providers hold themselves to higher standards for education and development. For example, AdvancED national accreditation requires child care franchises to have continuous professional development and meet minimum education standards.

Surprisingly, only about 10.3 percent of child care centers in the U.S. are nationally accredited, so understanding an early childcare franchise’s level and reach of accreditation is important.

Franchise-level support is key Familiarity with federal, state and franchise standards is essential, but nearly impossible without the support and guidance of the franchisor. Before investing in a child-focused franchise, it is

important to understand how the company is structured to help new franchisees to succeed. Support at the corporate level with experts in areas such as quality assurance, regulations, curriculum, technology and marketing can be especially helpful for new franchisees.

Additionally, child-focused franchises that embody an “extended family” culture and prioritize the new franchisee and their business can increase the odds for success. Along these lines, franchises that are forthcoming about the hurdles and considerations in this industry will reduce unexpected surprises for the franchisee down the road.

The growing and changing market requires vision for the future As families continue to devote more disposable income to children’s care, education, activities and entertainment, franchises in these industries are well-positioned to grow and expand.

Companies that can quickly expand to meet this demand will increase the value of their brand and better position franchisees within their individual markets. This can include growth in existing markets, expansion into new markets and even establishing the brand in international markets.

Growth is important; however it is equally important to align with a franchise that is prepared to addresses changes in the U.S. market as well. The U.S. Census Bureau reported the Hispanic or Latino population accounted for more than 50 percent of the U.S. population growth between 2000 and 2010. Additionally, the U.S. Asian population increased at a rate more than four times faster than the total U.S.

Bob Kirschner

population during the same time. When it comes to successful sustained growth, it will be important for child-focused businesses to consider these population changes and prepare and adapt to meet the needs of these families.

This industry yields the greatest rewards Child-focused franchise owners experience rewards far greater than any other industry. Every day they have a positive impact on the lives of children and their families. In the early childhood and education industry, we are providing children with a quality education and a safe place to develop, but beyond this, we reassure parents and provide inspiration and hope for the future.

Child-focused franchises come with many unique and complex challenges.

Competitive franchise standards, in addition to federal and state requirements, leave no room for error. But the rewards far outweigh the challenges. The impact on your community, children’s lives and the future can be significant and secondto-none.

Chief Operating Officer of Kids ‘R’ Kids International, Inc., Bob Kirschner, has over 30 years of experience in successfully managing franchise and distribution growth strategies for over 25 brands and 30,000 locations. In that time, Bob has worked with three child-focused franchises ranging from early child care to mathematics to supplemental education.

Page 33

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H AVE YOU R SAY

Dick G or sk i, Valuation Resea rch

Considerations for Buyers and Sellers of Franchise Restaurants It is not uncommon for private companies to accumulate nonbusiness and personal assets on their balance sheets including vehicles and vacant land held for future restaurant locations. These assets do not contribute to the current operations of the business, but may have significant value in their own right. If the nonbusiness real estate is to be included in the sale, the Seller should have a valuation done in order to receive proper compensation for these assets, in addition to the business value.

In our experience, the fixed asset records of franchise restaurants often include double and triple counting of assets.

As older assets components are retired from service, it is typical for the new replacement to be entered on the asset file.

However, the cost and net book value for the retired component is often not removed from the fixed asset file. The use of net book value or other simplistic valuation methods, based on the fixed asset record, can therefore result in an overstatement of value and higher recapture taxes. The Seller should insist on a proper valuation of the equipment prior to the close of the transaction so that the purchase price can be adjusted for the Seller’s tax liability.

Equipment

Intangible Assets

Seller Considerations Real Estate

Dick Gorski

INTRODUCTION The franchise restaurant industry has seen an increasing number of transactions in

recent years. Corporate owners have sold franchises to private equity firms or other

buyers, with many transactions taking the form of roll ups. Despite the volume and

diversity of these deals, there are a number of common valuation issues that apply

to restaurant franchise transactions. This

article will explore several issues from the perspective of both Buyers and Sellers in these transactions.

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If the transaction is structured as a sale of assets, the gain on the sale of the equipment may be taxable to the Seller at ordinary income rates rather than at capital gains rates. This recapture tax can significantly increase the cash tax liability of the Seller. The Seller therefore will want a low value assigned to equipment in order to minimize this tax. (It is worth noting that the buyer will benefit from having a high value assigned to the equipment, as described in more detail below.)

The sale of most franchises includes a non-compete agreement which prohibits the Seller from competing with the Buyer within the franchise territory for a specified number of years. The value of the non-compete agreement is taxable to the Seller at the ordinary income rate rather than the lower capital gains rate.

Therefore, it is again important for the Seller to have a third-party valuation of the non-compete agreement, before the transaction closes, in order to avoid any tax surprises after the fact.

“As restaurant franchise transactions continue to increase, it is important for Buyers and Sellers to obtain independent and experienced legal and valuation advice.”

Buyer Considerations Real Estate The structure of the real estate holdings can create complexities for the Buyer, even in the smallest transaction. Often the Seller owns the real estate in a separate corporation and leases it to the operating company. These related party lease agreements are often at rates different from current third party market lease rates.

It is important for the Buyer to understand the terms of the leases (including all option periods) and to explore comparable market rates. A real estate valuation professional can be helpful in this review, prior to the transaction.

Many owners of franchise restaurant businesses do not want to tie up their operating capital in owned real estate.

If owned real estate is included in the transaction, the Buyer may want to explore the sale-leaseback market. For a variety of reasons, it is important that both the sales price and lease rate be set at market rates.

The valuation of these assets should again be performed prior to finalization of the sale-leaseback transaction.

Equipment If a franchise transaction is structured as a sale of assets, the Buyer will establish a new depreciable basis in the assets for tax purposes, based on their value. As mentioned above, the Seller may incur recapture tax liability as a result of a high value placed on the fixed assets.

The Buyers interests here run contrary to the Sellers. Because the equipment will be depreciated for tax purposes over a

three to seven year life, versus 15 years or longer, the Buyer is best advantaged by a higher value being assigned to the equipment. Because the Buyer and Seller must use the same values for tax reporting and the values used must be supportable, it is advisable to have a valuation of the assets performed before the transaction closes, in order to sort out the differences between the parties.

Intangible Assets The Buyer will be required to record the value of the intangible assets on the balance sheet and to amortize these assets over their useful lives. These assets may include non-compete agreements, franchise agreements and brand names.

The amortization of these intangibles will have a negative impact on the Buyer’s income statements. This may be a concern to the Buyer, if for example, there are profit benchmarks the company is required to… meet under the terms of a bank loan agreement. Understanding the value and amortization of the intangible assets, prior to the close of the transaction, will eliminate these types of unforeseen problems.

Other Considerations It is also important for the Buyer to be aware of the remaining term on the franchise agreement and determine the length of time that cash flow will be available. The remaining term defines where the franchise is in its physical life cycle. It isn’t uncommon for major capital improvements to be required toward the end of the franchise term or on renewal.

Most franchise agreements require significant upgrades or renovations more than once during the term. It is important to understand where the restaurant is physically under the franchise agreement and what type of capital investment may be required as part of the franchise agreement. Also, franchisors may change the form of the franchise agreement on renewal, including adjustments to the economic terms. Buyers should be aware that a franchise agreement with a short remaining term may contain provisions that have a serious impact on profits.

Both the Buyer and Seller should review the franchise income statement and identify expenses which are either above or below third party market rates. For example, the selling owners may have paid themselves above-market salaries for managing the business. This makes the franchise appear less profitable, and therefore less valuable, than it would otherwise be to a third party. Other items to review include charitable contributions, entertainment expenses and lease terms.

Adjusting for these expenses will provide both Buyer and Seller with a better understanding of the value of the business.

Conclusion As restaurant franchise transactions continue to increase, it is important for Buyers and Sellers to obtain independent and experienced legal and valuation advice. The challenges in valuing these businesses and the unique nature of franchise agreements make restaurant transactions complex. Taking steps to identify and address issues prior to close can help expedite the transaction and avoid surprises or unexpected tax consequences. www.valuationresearch.com

Franchising USA

H AVE YOU R SAY

Page 35

ex per t advice

Andrew Cagnetta, CEO, Transworld Buisness Business Advisors

How to Buy a Franchise

If you’ve had the desire to become your own boss who builds and leads a business, but want to avoid risk, consider a franchise.

Franchises provide a “proven system” that ensures you are following a wellprescribed path to success. A great franchise will also include vital elements such as extensive training, brand recognition, ongoing education and many levels of support.

Having a complete understanding of the brand’s business model, support structure and monetary investments will help

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guide you in your decision process. You should consider some critical components to address business concerns and find the perfect fit in regards to your unique objectives and passions.

1) Cost Components The initial investment is the amount of liquid capital required up front after all of the financing options have been applied.

A franchise fee usually covers training, implementation and setup. Ongoing costs include royalties, which are usually calculated as a percentage based on gross revenues and may have a cap on the maximum amount. These royalties will also cover ongoing support programs and, in some cases, the markup on products required to be purchased directly from

the franchisor will constitute royalties.

Other continuing costs include national marketing or advertising fees, which can be calculated as a percentage or a flat fee. The total investment will include the franchise fee, working capital, inventory and equipment costs. At United Franchise Group, we also offer financing options that can help cover startup on ongoing capital expenses.

2) Training and Support Detailed training and operations manuals must be given to prospects to explain structure and how the training process will address their needs. The prospects should also be prepared to incur additional expenditures as the franchisor may not cover training travel and lodging costs. If

“A great franchise will also include vital elements such as extensive training, brand recognition, ongoing education and many levels of support.”

Discovery Day will help you discover what is already in place and what needs to be modified so you can gain confidence and get comfortable with the company.

4) Expectations and Financial Questions We have a saying in our office regarding prospects: “The best way to learn about this business is to sit down and talk to someone who does it for a living.” For example, franchisors can legally discuss earnings with you as long as they have disclosed the information in their FDD. Although it may take a few meetings to address all of your questions and concerns, obtaining information from the franchise will be immensely helpful in the initial stages of business ownership.

5) The Time Frame

any costs are associated with additional training for spouses, partners or staff, they should be specified as well. The prospect should inquire into the franchise’s ongoing marketing and support as creating a source of community and motivation through things like an established field staff or mentor program is crucial.

3) Discovery Day Opportunity A great franchisor will make sure you see the home office as soon as possible, which will let you ask pertinent questions and meet the people you will be working with on a day-to-day basis. You will be able to see the training facility for yourself, meet the brand leader and, overall, get a firm grasp on what you can see happening in the future for the brand. Going through a

It is important to know how long it will take before your doors are open for business and how long it will take to get your business up and running. Since you will be running the show, asking a few existing franchisees about how long it took to get their franchise off the ground and what factors influenced their timeline will help you in your planning process. You can take these factors into consideration to ensure that you remain on-track and start off strong.

6) Industry and Territory Prospects should ask multiple existing franchisees about the growth or decline they have experienced and what products and services have the potential to help the company thrive. Franchisees can communicate which programs are in place to ensure franchise cohesiveness. They can also share marketing efforts that help

Andrew Cagnetta

the brand stand out and how those will continue to be reinforced. Although each franchise has its own way of determining a territory, you should gather information to prove the demographics are valid.

After you have spoken with current franchisees, visited the franchisor headquarters and analyzed your finances, you will have the information you need to make a decision. You should realize the franchise does two things at once: matches your financial resources and provides you with a positive lifestyle.

Working alongside people who are experienced and enthusiastic will let you achieve your dreams and experience the “American dream”. Doing your research and following the “proven system” will help you make smart choices and become confident in your decisions so you can thrive as a new business owner!

Andrew Cagnetta is the CEO of Transworld Business Advisors. Andy enjoys helping business owners/buyers realize the American Dream through Business Brokerage and Franchise Consulting/Development. Transworld Business Advisors,LLC is a worldwide franchise leader in business brokerage, franchise consulting and franchise development.

Franchising USA

ex per t advice

Page 37

INTRODUCING OUR NEW

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ld and highly ughout the wor ized brand thro ud to be one Midas, a recogn car care, is pro e plet com in e s – and renowned nam chise opportunitie a’s original fran of Nor th Americ one of its best. lds - the best of both wor experience the and With Midas, you e organization erienced franchis vice exp ser an o of t aut por sup r ver y own ted of operating you become a trus the satisfaction you ee, chis lding a Midas fran Bui As s. . ines rise erp bus ent your doors for n ry ope eve k you wor name the day of our brand. We ness, t is at the heart se, responsive consumer trus providing experti by t trus t . tha day to ear n er every time e to every custom and the best valu ch” “The Midas Tou rly 60 years of Benefit from nea

otive ser vice tion in the autom t a stellar reputa t to help you Midas has buil decades. We wan stry nearly six continue to you as and repair indu and n a location ope you wing: ore Bef succeed. you with the follo p, Midas will help p operate your sho tem for your sho sys ent em nag • Business ma ee orientation • New franchis resources ing and training train • Ongoing por t. sup al tion era • Op suppor t • Development business: marketing your • Optimizing and or visiting ww w.

00-365-00 07 ay by calling 1-8 Join Midas tod m! .co ng or an a franchise offeri midasfranchise or forms are not inform any request for This website and hise. offer to sell a franc

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march 2015

Veterans in Franchising www.franchisingusamagazine.com

JDog Junk Removal

Respect - Integrity - Trust

The Veterans Choice

News From

VetFran Things To Consider Before Entering

a Business Partnership

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

Contents Cover Story

News & Expert Advice

42 Jdog Junk Removal

44 Things to Consider Before Entering a

Business Partnership Salim E. Awad Esq

Respect – Integrity – Trust

Profiles

48 News From VetFran.

46 HandyMan Matters 47 101 Mobility 50 Erbert & Gerberts

Franchising USA

V e t er ans in Fr anch ising

C over S tor y - J Dog Junk R em oval

jdog junk removal

respect - integrity - trust the veterans choice JDog Junk Removal’s CEO and Founder has started more than just a franchise, he’s started a movement to help more United States military veterans start their own business when they leave the service.

“We’re the only franchise ever to open a franchise model exclusively sold to the military community,” CEO Jerry Flanagan proudly declared during a recent phone interview from his headquarters in Berwyn, PA. When given the choice, Flanagan said, he believes the average American consumer would choose a veteran-owned business and that was the impetus behind creating JDog Junk Removal.

In operation since March of 2011, it was meant to fill the space for vets who are leaving the service and aren’t sure where they should go after that. Often these former service people aren’t sure what they’ll do when they leave the service and Flanagan wanted to give them a relatively simple and cost effective option.

“We built the company to put military veteran families into small business ownership all throughout the country,” he said, “and we built it with the notion that we want them to hire veterans, too.”

Flanagan started franchising in 2012, but launched a national franchising campaign in Septemberof 2014. So far, he has 11 signed franchises with 12 more committed.

JDog’s main service is the removal of junk from either residential or commercial

“‘Respect. Integrity. Trust’ is the company motto and JDog wants people who can uphold that motto.”

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place over several phone calls to see if the business and the potential franchisee would be a good mutual fit for each other.

Support is provided via national marketing, a dedicated IT department, a director of operations who supports franchisees out in the field, an administrative arm that takes care of local marketing and branding and an investment group who is overseeing the growth of the company.

property that people aren’t sure what to do with. Things like old couches or hot tubs or any other item that a person isn’t sure how to dispose of are perfect for JDog to take away. From the place of pickup, they take the items to transfer stations to make sure they’re disposed of properly. If items are recyclable, they’ll take them to a recycling centre. If they’re donations, they go to a donation centre. They don’t go to dump sites.

To make sure the company stays true to its military inspired roots, the whole company has a military theme to it, wi th Hummers and trailers wrapped in camouflage.

Profitability Flanagan said he chose junk removal as a franchising model because the profitability is high and there is high demand for the service. During the recession of 2008 and 2009, junk removal did well as a business because other businesses were had to shut down and dispose of items. It was this survivability during slow economic times, plus the relatively low startup costs that made junk removal a sound franchising option.

Getting Started An army and National Guard veteran, Flanagan left the service and spent 20 years in sales, marketing and operations in the retail sector. However, after the aforementioned recession, retail was so bad that he decided to leave that and restart his career in a business that wasn’t as susceptible to an economic downturn.

Plus, he also wanted to work with and hire other veterans.

That led to the opening of the first JDog Junk Removal in his home town of Chesterbrook, PA and that’s when he realized that his idea really had legs, as he consistently saw the community rally around the idea that they could hire a veteran owned business for junk removal.

“The customers really felt comfortable that they could trust a person from the military to do the work,” he recalled.

Word of mouth spread fast and his sales climbed quickly. Instead of trying to build the business one place at a time, he decided to franchise instead to get veterans into the workforce faster.

Ideal Franchisee Aside from having to be a veteran, JDog is looking for people who want to work in the community, who have good people skills, are trustworthy and can bring integrity to the brand. “Respect. Integrity. Trust” is the company motto and JDog wants people who can uphold that motto.

Military families, particularly husband and wife teams work well, Flanagan noted, adding that his wife Tracy is his business partner.

Interested franchisees can visit the business’ website at jdogjunkremoval. com where it has a form they can fill out.

Once a potential franchisee’s information is reviewed and they are deemed a good candidate, the interview process will take

Franchisees also have at their disposal an advisory board that consists of retired military members who mentor veterans just setting up their own business for the first time. This board includes retired Marine Maj. Gen. Douglas O’Dell who lead clean-up efforts from the Hurricane Katrina disaster and Larry Liss, who is the highest decorated helicopter pilot in the history of the Vietnam War and an executive coach.

Training, meanwhile, is provided at JDog’s Philadelphia training center where franchisees have three full days of training covering all aspects of the business. JDog representatives then go out to the new franchisee’s location after six to eight weeks of getting all their equipment together and the JDog reps stay there for the grand opening and to make sure everything starts smoothly for the new franchisee. Currently, JDog has locations available across the country.

The company has received some good recognition since its inception, being named as one of the top 25 veteran-owned businesses of Philadelphia and Best Innovative Business by Mainline Media News.

And, if Flanagan’s plans pan out, JDog junk removal will be just the first in a line of brands that cater to giving franchise opportunities to military veteran families.

Flanagan envisions JDog Security, JDog Plumbing, JDog Electric and more, with the JDog brand becoming an umbrella company synonymous with military veteran-owned businesses.

Judging from the good start he has gotten off to, he is well on his way to realizing that dream. www.jdogjunkremoval.com

Franchising USA

V e t er ans in Fr anch ising

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V e t er ans in Fr anch ising

Salim E. Awad, Esq.

THINGS TO CONSIDER BEFORE

ENTERING A BUSINESS PARTNERSHIP

Going into business with a partner has significant advantages. It may help you make the most out of shared resources and complementary talents.

However, there are important considerations you should take into account before jumping into a partnership.

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Start by thinking about whether you really need partners. Being afraid to go into business alone, or lacking financing, skills or connections may be the wrong reasons for a partnership. You may be able to get someone to do something without giving away a share of your business. You could hire someone or find a mentor to bring capital, skills, or a network to the table.

If after careful analysis you have resolved that you must have partners, consider partners who compliment your personality and skills, but that also bring something different to the table and are passionate about growing the business

and succeeding. Consider the pros and cons of a partner relative to your business, industry and finances.

Get to know your partner first. It is important to look into the potential partner’s values, personal goals and financial situation. Working with a partner who does not share your business values and ethical standards may discredit your reputation with clients and other partners.

An examination into the potential partner’s personal goals and vision of the business will not always guarantee a complete alignment, but it will at least avoid fundamental discrepancies and unpleasant

“Get to know your partner first. It is important to look into the potential partner’s values, personal goals and financial situation.” attorney. Give a significant amount of unemotional thought to the following: 1. A written partnership agreement.

Partners should be willing to put an agreement to writing. A written agreement may not be a legal requirement in your state, but a wellcrafted partnership agreement may not only insulate you from personal liability issues, it will force you to think about how you and your partner, or partners, will achieve the implementation of your entrepreneurial vision. Partners should be able to resolve any issues that arise by referring to the agreement. In the absence of an agreement, discrepancies will be resolved by your state’s generic partnership law, which will undoubtedly not cover the intricacies of your business partnership. surprises. You may ask for references, look at their presence online, and even run a background check. Do this before entering an agreement.

Communicate with the potential partner before you make a decision. Your conversations with potential partners should be aimed at establishing two-way lines of communication and allow the parties to set forth their expectations. You could also benefit from working with the potential partner on a discrete project or for a couple of weeks before you make a final decision.

So you have made a decision about whether you would like a partner. You have also ensured that the potential partner is a good match for the partnership. Stop.

There are legal implications that you must consider before jumping into a partnership agreement. You must understand the different forms of legal partnerships, contemplate forms of taxation, decide how you will split profits, and think about how you would handle the situation in the event of a break-up. Thus, it is crucial to find the advice of an accountant and an

2. Determine the roles and responsibilities of each partner.

This is about managing duties and expectations. Although partners don’t need to commit the exact same amount of time on the business, it is crucial that there is consensus as to expected time obligations. You will avoid resentment that may emerge when partners begin distributing profits and comparing them to individual efforts and results.

This decision must avoid the emotion connected to a power structure.

Every partner needs to be clear on her role, duties and responsibilities.

Responsibility for day-to-day company direction must be based on what is best for the business enterprise.

3. Align the partnership towards profit. Profit will generally result when you create value for your customers.

However, commitment from potential partners to the business must be as strong as yours. It is fundamental to consider how you and your partner will be accountable for results. Think about how you will measure performance and outcomes.

Salim E. Awad, Esq.

4. Develop an exit strategy for each partner. Ironically, you should enter the partnership knowing that it will likely end someday. Thus, you should outline flexible steps for partners to exit the partnership when a need or circumstance arises.

5. Decide how you will handle partnership dissolution. Business partners will likely go on their separate ways at some point. You must prepare for that scenario by determining how partners will be compensated, resources divided, and clients served when the time comes. Emotions will undoubtedly run high if the partnership does not work out, so the best time to decide how to handle a break-up is before a partnership or operating agreement is signed.

There may certainly be a number of specific considerations that you should take into account according to your industry, business, and personal situation.

However, figuring out from the outset whether you need a partner and how the partnership will operate with regards to compensation, exit clauses, and roles and responsibilities, will give you a solid general framework for a successful partnership, and allow you to focus on your business.

Disclaimer: This article is for informational purposes only. It is not intended to constitute advertising, solicitation, or legal advice. The reader should not act or refrain from acting based upon the information contained on this Article. The author expressly disclaims all liability with respect to actions taken or not taken in reliance on any or all of the content of this article. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

Franchising USA

V e t er ans in Fr anch ising

Page 45

V e t er ans in Fr anch ising

H a nd y ma n M at ter s

Retired Army Sergeant Finds New Life as

Handyman Matters Franchisee Keith Orr served as a noncommissioned officer (NCO) for most of his 24 years of active duty service in the U.S. Army, rising through the ranks to sergeant first class.

“The military taught me the value of hard work, how to follow systems and the best ways to react to changing circumstances on the fly.”

NCOs are the military’s hands-on troop supervisors and task handlers. Orr performed those chores while serving in multiple positions through more than two decades, including combat deployments stretching from the brief 1991 Gulf War and Kosovo to a couple of harrowing years in Iraq.

As he served in these positions, he was also unknowingly learning the principles that would be key to his career after he left the military.

“The military taught me the value of hard work, how to follow systems and the best ways to react to changing circumstances on the fly,” Orr said. “All of these skills would become essential in preparing me well for the rigors of my transition to civilian life.”

During his final year in uniform, Orr was already thinking hard about his post military career. “I didn’t want to be a cop or a prison guard. I had to put the gun away,” he said. “I needed to move away from that lifestyle. I didn’t want to deploy anymore.”

Shortly after retiring from the military in early 2013, Orr moved his family back home to Northern Delaware and decided that entrepreneurship was the right path for him. He immediately turned his attention to finding a franchise that would allow him to utilize the leadership, critical thinking and team work skills he developed throughout his time in the

Franchising USA

Army. He also wanted to find a franchise that would make possible the lifestyle that he wanted for himself and his family.

At a job fair, he was approached by a franchise coach from the Entrepreneur’s Source, who suggested Handyman Matters, a Denver-based home improvement and home repair services franchise with nearly 150 locations across the country.

Orr opened his Handyman Matters franchise in September 2013, having spent about $75,000 on the franchise purchase and start-up costs. About $25,000 was from his own resources and the remaining $50,000 was from a SBA-backed Patriot Express loan.

“We do small repair work for residential

and some commercial … We try to bring a sense of trust with the construction and handyman industry. There are so many people working out of the back of their truck, who do shoddy work, take your money and leave,” Orr explained. “We provide consistent, on-time service and offer a one-year warranty.”

In about 18 months, Orr’s business has grown to six employees, five of them handymen who can go to a home and fix “anything that doesn’t require a license,” as he puts it. As the business continues to expand, Orr plans to hire other veterans like himself.

For more information about Handyman Matters, please visit www.handymanmatters.com.

101 Mobility

of Knoxville gets new General Manager The New Year brings Rob Yeager to the helm of 101 Mobility of Knoxville. Rob succeeds Keith Kregel in the General Management position in the Sherway Road location.

“My past experience puts them at ease; there’s a calming trust factor that sets in when they hear I used to be a firefighter and a marine.”

Formerly, Rob was with a mold remediation company in Nashville and prior to that position he served on the Knoxville Fire Department for 18 years.

His work experience and service as a marine has been a great asset as he settles into his role at 101 Mobility. “Interacting with the customers has been great,” said Rob. “My past experience puts them at ease; there’s a calming trust factor that sets in when they hear I used to be firefighter and a marine.”

Helping individuals find the right mobility or accessibility product to meet their needs is a careful process involving product training and excellent customer service skills. “It’s been fantastic working with our team. Service Manager Josh Casteel and our office manager Anna Williams have been extraordinary,” said Rob. “It’s great that we get to help people and both Josh and Anna are crucial to making everything run smoothly from scheduling to installations.”

Rob looks forward to continuing business development and has goals to expand the team in 2015. For more information regarding 101 Mobility of Knoxville’s services and products including stair lifts, auto lifts, and ramps, please visit: http://knoxville.101mobility.com/ or call 865-896-9425 to speak with a service professional.

lifts, power wheelchairs, scooters and

By working with patients to identify which home health care devices best suit each individual’s needs, 101 Mobility of Knoxville provides an alternative to group homes and rehabilitation centers by increasing accessibility and allowing clients to live self-sufficiently in their homes.

available for home, office, and institution.

For more information, please visit: http://knoxville.101mobility.com

About 101 Mobility of Knoxville 101 Mobility of Knoxville is a full-service

sales, service, and installation provider of a complete line of mobility and accessibility products and equipment, including stair

lifts, auto lifts, ramps, porch lifts, patient more. Short and long-term rentals are also

Franchising USA

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101 M obilit y

V e t er ans in Fr anch ising

VetFran

VetFran 2015 The International Franchise Association (IFA) held its annual convention in Las Vegas from February 15 - 18.

On President’s Day, the IFA ºEducational Foundation hosted its annual VetFran Chairman Corps Reception to thank the generous donors of the program. The Nellis Air Force Base Honor Guard opened the ceremony with the presentation of the colors. Outgoing chairman of the

VetFran Committee Members with Nellis AFB Honor Guard, left to right: Jim Amos, Jr., Mary Thompson, Eric Stites, Steve Wadlington, Gordon Logan, George G. Eldridge, Jeff Bevis and Joe Lindenmayer.

Franchising USA

VetFran Committee, Joe Lindenmayer, welcomed the crowd and extended a thank you to the program’s dedicated sponsors.

The VetFran Committee met on Sunday, February 15, to discuss the accomplishments of the past year and to discuss priorities for the upcoming year.

VetFran received the American Society of Association Executives (ASAE) highest honor in 2014, the “Power of A Gold Award” for its industry-wide effort to hire and recruit 80,000 veterans, military spouses and wounded warriors. Since Veteran’s Day 2011, through Operation Enduring Opportunity, 203,890 veterans have found career opportunities in the franchise industry, with 5,608 becoming small business ownrs, far surpassing the OEO goals.

VetFran committee members conducted workshops for veterans throughout the year, including the Franchise Expos in Houston, New York, and Los Angeles, and focused on women veterans (Veteran Women Igniting the Spirit of

Entrepreneurship – V-WISE). In May, VetFran led a panel discussion at the Service Academy Career Conference to discuss the different aspects of franchising that appeal to military personnel. In October, VetFran sponsored the Simpson Cup event at Congressional Country Club which consisted of wounded warriors from USA and UK joining forces to raise awareness and funds for supporting these heroes.

Another highlight included a presentation, an Introduction to Franchising, by Ben Litalien at the Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE) National Graduate Training Conference in November in San Antonio, Texas. On November 12, at Joint Base Anacostia, Steve Caldeira and Kevin Blanchard represented the IFA in support of the Chamber of Commerce Hiring our Heroes job fair. The program announced the commitment to hire 500,000 veterans.

Gordon Logan, the incoming Chairman of the VetFran Committee stated “this year we will be focusing on providing the absolute best opportunities to our Veterans through the VetFran program, which includes concerted efforts to get the word out to Veterans, active duty service men and women about the opportunities available to them through the VetFran programs. We want to publicize not only franchise ownership possibilities but also employment opportunities with VetFran member companies. Our new website will be a big step in this direction, thanks to our partners Qiigo, whom provided the web site to us at no charge as a service to our Veterans.”

Furthermore, VetFran will continue its effort with the Chamber of Commerce Hiring Our Heroes Program to help veterans learn about jobs in franchising and also future franchise ownership possibilities. Additionally, VetFran will continue cooperative efforts with the Small Business Administration (SBA) and Marriott to promote the franchising concept to veterans. A co-sponsored event

“While some adventurous tourists were off enjoying Valentine’s Day, this group of volunteers decided to take a different tour of Las Vegas.” with the SBA and Marriott is planned for November 3, 2015, titled Franchising Focuses on Connecting Veteran-OwnedSmall Businesses to Corporate Supply Chain– Learn how your small business can service corporate supply chains. This will be a training on “best practices” for navigating corporate supplier diversity programs. There are plans to conduct three more of these events during the year to focus on different aspects of franchising.

On a beautiful eighty-degree day, the VetFran committee partnered with the Franchising Gives Back program to take 80 volunteers to serve at Veteran’s Village, a transitional housing facility in Las Vegas. While some adventurous tourists were off enjoying Valentine’s Day, this group of volunteers decided to take a different tour of Las Vegas. The day before the IFA Annual Convention begins, members of the franchising community came together to support this event, Franchising Gives Back, which is in its fourth year. This program is part of a non-profit initiative coordinated by the IFA Educational Foundation. Each

year the program chooses a community project that fosters a sense of community for convention attendees while they lend their time and muscles to help make a difference in a local organization.

The challenge this year was to clean, scrape and paint the exterior of the Veteran’s Village which was once a rundown motel on Las Vegas Boulevard.

While some volunteers painted, others set forth assembling 500 emergency toiletry kits that included a simple but personal thank you note in each one. This year’s event was coordinated through the Las Vegas United Way. Several members of the VetFran committee rolled up their sleeves and participated in this day of service.

Additional information on Franchising Gives Back can be found at www. franchisinggivesback.org or by contacting the program manager, Gionne Jones, at gjones@franchise.org.

Details on the VetFran program can be found at VetFran.com or by contacting the program manager, George G. Eldridge, at geldridge@franchise.org.

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Er b er t & G er b er t ’s

Erbert & Gerbert’s Sandwich Shop franchise is promoting its current franchise incentive to Veterans with hopes they will be able to join the Flavor Nation.

Through its Vetfran discount E&G offers Veterans $5,000 off the initial franchise fee of $30,000 for new franchisees, and $3,000 off any subsequent territory purchases.

E&G Franchise Systems values the work ethic and dedication of our nation’s heroes and we are proud to offer this incentive to help with the initial costs of franchise ownership. Customers are looking for a

Franchising USA

unique, and value driven menu in the fast casual sector and Veterans are seeking franchise opportunities which are good investments. E&G is ready to support qualified Veterans with the franchise acquisition process.

Erbert & Gerbert’s Sandwich Shop indeed crosses that line of uniqueness and relevancy, yet has proven systems in place, which provides the comfort platform our guests need, and at the same time attracting franchisee investment capital.

E&G Franchise Systems, Inc. recognizes that individual investors have specific needs and appetites for growth. We offer a business plan template designed to help you develop strategic thinking as a prospective franchisee. It is also helpful when approaching lending institutions and potential investors. Though you may

not be a franchisee yet, the business plan template is given as an example of the type of assistance we offer to our franchisees in helping them reach their dream of owning a business. We offer multiple franchising opportunities ranging from Single, Multi and Area Developers.

E&G has taken great efforts to make their brand unique and recognizable while continuing to expand their sandwich shop franchise on a national basis.

E&G would like to inform you more about the details of the specific franchise offering and invite you to visit the E&G Franchise Website at: www.erbertandgerberts.com or visit the VBS advertisement to have a representative contact you right away at: http://www.veteransbusinessservices.us/ product-item/erbert-gerberts/

Franchising USA

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5

Andrew Kyle Zagrodzky, Cagnetta, President, CEO, Transworld OsteoStrong Business Advisors

Ways to Make Active Listening a Priority “The simple act of tuning in proves you care, makes people feel important, earns you instant respect, and proves you are open to better ways of doing things.” or realize you don’t know where the conversation went? If you’re honest, the answer is yes. Listening well is hard work, and no one can do it perfectly all the time.

Kyle Zagrodzky

Listen up: If you want to be a better leader, it’s not just about what you say or do. To be a better leader, business person, even human being, you have to be a better listener.

Most of us think we’re great listeners already—and most of us are wrong.

Consider this quick quiz: When listening to someone, do you ever drum your fingers on the desk, check your email, text, browse the Internet, fine your mind wandering,

Franchising USA

Listening is like any other vital skill; if you want to be better, and you always should, you have to constantly keep working to improve. The simple act of tuning in proves you care, makes people feel important, earns you instant respect, and proves you are open to better ways of doing things. When tuned out, we tell others that we don’t care what we’re saying and usually miss key information, drop the ball, or even damage a relationship.

What is active listening?

Active listening is the practice of providing feedback to the speaker through restating or summarizing what the speaker said. Much more than parroting, active listening is a way of illustrating what was heard and confirming understanding between both parties. The purpose of active listening is to increase comprehension, boost retention, and encourage more engaged responses and productive communication.

1

Quit multitasking

When someone is speaking, clear all other tasks and distractions out of the way.

Close email, put down the smartphone, and peel your eyes from the computer screen. If now isn’t a good time to focus your entire attention on the speaker, be honest and ask for a few minutes to finish what needs to get done. People will feel valued and respected, plus know they will have your full attention later.

2

Emphasize observation

Great listening is, first and foremost, about observation. What do your ears tell you about the speaker’s tone and state of mind? What do visual cues in their body language show you about their attitude and comfort level? Focus on the speaker’s nonverbal cues to clue into what they’re really saying. Even if communication isn’t in person, you can tell a lot from talking on the phone if you pay attention.

3

Don’t jump to judgments

Active listening isn’t about judging. If people feel that you’ve made up your mind before you understand, you’ve lost them,

and they won’t be as willing to share ideas next time. Instead of thinking about how to respond before the speaker finishes, work on earning your validation as someone who takes the time to understand. Active listening isn’t about judging before someone is done, it’s about proving you get what the person is saying.

4

Communicate with nonverbal cues

Active listening involves paraphrasing the main points you just heard back to the speaker, but the idea isn’t just to mirror what someone just said. The practice leverages nonverbal observation as a gateway to better understanding, and as a listener you can project nonverbal messages to show you’re paying attention.

You don’t have to nod constantly, which makes people look like bobble heads.

Illustrate your alert attention with open

posture, folded hands, and good eye contact.

5

Be patient

Active listening is helpful because it gives you a better rapport and understanding of those you work with, but also because it paves the way to create a better audience when you’re ready to speak. When people feel you have really heard them, they are more open to listening in return. By listening well, you are better positioned to introduce your own ideas, feelings, and suggestions. Practice the art of patience when listening—when you’re ready to speak, you’ll have earned an ear of your own.

Great listening is essential to great leadership. Being a good listener is one of the best ways to earn people’s respect, not to mention learn helpful ideas. When those you work with know they have your undivided attention, they’re more likely

to give you theirs as well. Some people are naturally talented listeners, but most of us have to spend time working on developing the skill. If you invest in being a better listener, you’ll be a better leader who’s more able to solve problems and understand people’s needs.

Kyle Zagrodzky is president of OsteoStrong, the health and wellness system that boosts bone and muscle strength in less than 10 minutes a week using scientifically proven osteogenic loading concepts. OsteoStrong introduced a new era in modern fitness and aging prevention two years ago and has since helped thousands of clients between ages eight and 92 improve strength, balance, endurance, and bone density. In 2014, the brand signed commitments with nine regional developers to launch 500 new locations across America.

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ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

It’s About The Deal

One Common Mistake To Avoid After years in the business and thousands of engagements we have some very predictable habits of human nature that we have identified.

This article deals with one of the most pervasive, and what is on occasion one of most costly.

We see candidates enter our franchise search process at two different

Franchising USA

investigation stages. The first group are those that come in with no targeted franchise opportunity yet, the second group has already identified either a category or a particular brand they have decided they are interested in and want to get advice on those or to see what else might fit. While both groups come in at a different stage in their investigation they often get to a common challenge to their overall opportunity.

and go into a mode of trying to “Make the identified solution work”. The cost is that these blinders can exclude better solutions to reaching your goals.

The challenge begins to creep in where our minds look for a simple singular solution to reaching our goals. Once we believe we have seen a viable solution (not always the best) we tend to latch on to that

All of the options on his list were scalable portfolio builders but they were from different markets as the candidate’s model and the value of the deal they can pursue with the brand are both considered. We

Let me give you an example: We recently had an experienced business owner candidate come through our process for whom we had identified a number of portfolio building options. The potential financial opportunity of each those deals were good but varied.

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Franchising USA

ex per t advice

George Knauf, Senior Franchise Business Advisor, FranChoice

“When you rank your franchise options, don’t get too attached to a particular market or brand as those blinders may be costly. Find your best opportunity and go grow your portfolio!” pick top matches and concepts, not top categories.

Keep in mind that we built his franchise model, his list was perfectly matched to his skills and his goals. Your list might be very different in order to maximize your personal results.

When we built his list there were concepts that operated much like real estate investments as well as those that are consumer service offerings, but none where he would be the operator. He quickly narrowed his list to a concept he felt comfortable with about in the spa category as he was an ongoing consumer of these kinds of services. In his particular list it also turned out that this brand stood out in terms of the deal that he could capture with that particular franchisor at the time.

The franchisor he placed at the top of his list was a proven emerging Franchise that was working very hard to secure capable operators. To that end they had structured a very advantageous multi-unit package deal where that candidate would have saved a considerable sum of money in a multi-unit package. Additionally, he would have had a separate pool of units set aside for him that he controlled for up to five years via a future option arrangement where he could pay for those territories any time during that period to fully own and develop them. He would have controlled a lot of units for a low out of pocket cost.

He also got major concessions in the product and service lineup, interior design cues, development schedule and territory definition. In short, he had hit a grand slam home run in terms of maximizing his deal. There was one challenge he could not overcome, but it had nothing to do with the deal.

While he loved the company, offering

Franchising USA

and deal his wife did not connect with it in some way that we could never fully identify. It is safe to say it was not the money or opportunity that stopped him moving forward in that deal, those were just too good to pass up.

Here, though, is where the challenge set in. He had a deal that was significantly to his benefit in a space he had comfort with.

When his wife halted that process on that advantageous deal he did not look for the next best deal, he looked for the next best spa franchise. Against the other deals he had access to the next best Spa would be ranked much further back than his next best deal did.

I have no problem with the idea of a spa franchise if selected well. They are a moderate (not low) investment, moderate (not fast) ramp up and can produce some acceptable unit economics when they do mature. There are a number of brands in the space and they currently exist in most markets. For an owner operator it may be a lifestyle decision worth trading away some opportunity.

There are concepts that may offer a better cost, speed to ramp up or unit economics for a semi-absentee owner than a spa does.

I have been involved in a number of discussions with large portfolio investors as an adviser on opportunities they were considering. Seasoned investors who are building portfolios often rank deals by benefit, not by category. If they are looking at a particular acquisition and it does not move forward they go to the next best (or even better) deal with a clean slate, whether or not it is in the same space as the last one.

Our spa may have feared that aiming at another space, even if it was a far better deal, would mean he would have a more difficult path to getting the support of his wife. A bird in the hand…

George Knauf

It is unfortunate that he could not consider the next best deal overall as it was very strong. His next best deal was an absentee high growth offering in the fitness space that is roughly the same investment as a spa brand, but really stood out when looking at a ramp-up speed that is nearly two years faster to maturity and in a business that may net more than double what a spa concept would.

When you rank your franchise options, don’t get too attached to a particular market or brand as those blinders may be costly. Find your best opportunity and go grow your portfolio!

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

Contact the Franchising USA Expert George’s Hotline 703-424-2980 www.FranGuide.com

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3 great features of the IFG 50/50 3 3great features of the IFGIFG 50/50 great features of the 50/50 franchise franchise x You handle the ‘people work’ franchise x xYou handle the ‘people work’ We paperwork Youhandle handle the ‘people work’ x We handle the paperwork We handle the paperwork x xCreate exponential growth x Create exponential growth x Create exponential growth

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Franchising USA

ifa n e ws

Inter national Fra nchise Association

International Franchise Association Educational Foundation

Unveils Franchising Gives Back National Initiative

The International Franchise Association (IFA) Educational Foundation today launched its Franchising Gives Back program at the IFA’s annual convention in Las Vegas. Franchising Gives Back salutes the best, most innovative community leaders and charitable programs nationwide.

“Franchising Gives Back is a year-long celebration of community leadership across the U.S. and around the world,” said John Reynolds, CFE, president of the IFA Educational Foundation. “Franchise businesses give back in countless ways each day, bringing people together in service to others and building strong communities. Franchising Gives Back shines a light on these exemplary leaders who are giving back and inspiring their peers to do the same.”

As part of the Franchising Gives Back national initiative, the IFA Educational Foundation has begun development of a national registry of the franchising industry’s charitable contributions and community support.

Members of the IFA can contribute to the national registry by visiting www.franchisinggivesback.org to register and create a profile for their organization.

Companies can submit details about their charitable activities — including hours volunteered and money donated — as well as upcoming events, news and blog posts.

Additionally, in early March, the IFA Educational Foundation will announce its call for nominations for the first Franchising Gives Back Annual Awards Program recognizing the significant contributions franchise businesses make to their communities. IFA members will have the opportunity to submit nominations in a number of categories to recognize their charitable initiatives that their businesses support in local communities throughout

Franchising USA

“Franchising Gives Back Celebrates the Best, Most Innovative Community Leaders and Charitable Programs Nationwide.” the year. Winners will be honored during a special event in September 2015.

Plans are being finalized to publish its first Franchising Gives Back Annual Report highlighting the indu stry’s contributions and a best practices guide for IFA members who want to develop their community support and charitable activities.

As part of the IFA Foundation’s “Shaping the Future of Franchising” fundraising campaign launched last year, the Roark Capital Group made a lead gift to the Foundation as the founding partner of Franchising Gives Back.

“The IFA often cites the economic impact franchise business owners have made, employing millions of Americans and creating new jobs each year, but the charitable work being done by small business owners is equally powerful,” said Steve Romaniello, CFE, Managing Director, Roark Capital Group. “We are honored to be the founding partner of Franchising Gives Back and celebrate the billions of volunteer hours and dollars franchise businesses donate each year.”

For more information on Franchising Gives Back and to submit details

about charitable programs and community support initiatives, visit www.franchisinggivesback.org.

About the International Franchise Association Educational Foundation Founded in 1983, the IFA Educational Foundation is a 501 (c)(3) tax-exempt organization and supported through the generous contributions of IFA members and others. The Foundation’s mission is to advance franchising and the free enterprise system by increasing the knowledge and professional standards of all members of the franchising community; educating the next generation of franchise practitioners; increasing recognition of franchising’s key role in the free enterprise system; and providing comprehensive information and research about important developments and trends in franchising.

About the International Franchise Association Celebrating 55 years of excellence, education and advocacy, the International Franchise Association is the world’s oldest and largest organization representing

franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 780,000 franchise establishments that support nearly 8.9 million direct jobs, $890 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law, technology and business development.

About Roark Capital Group Roark Capital Group is an Atlanta-based private equity firm that specializes in franchise, brand management, environmental services and marketing services companies with attractive growth prospects. Roark focuses on middle-market investment opportunities through family-owned business transfers, management and corporate buyouts, recapitalizations, going-private transactions and corporate divestitures.

The firm has $3 billion of equity capital under management.

For more information, visit www.roarkcapital.com.

Franchising USA

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ex per t advice

Scott Lasky, Lasky Architect

How to Save Money Opening Your New Franchise Location

3 FAQs: A few cost saving tips for Franchisors and Franchisees Franchising USA

Everyone wants to save money when setting up a new business. However, when the business needs to get permits from a building department, hiring a franchise architect and investing some money up-front will save you time and money in the end.

“Each franchise concept has equipment and design requirements that must be included in all locations, no matter what size and shape they are.�

Three of most frequent questions we are asked by new franchisees are:

1

Do I need to have new architectural / design drawings created for my location?

The short answer is yes. And it will save you time and money in the long run. A franchise architect will work with local building departments to get your permits as quickly as possible. In addition, a franchise architect will make sure that your new location includes the unique and defining brand concepts that the franchisor has developed, to help maximize your profits.

Each franchise concept has equipment and design requirements that must be included in all locations, no matter what size and shape they are.

A franchise architect understands the unique requirements of a franchisor and how best to design a store layout that takes into account everything from table placement to a register height to ADA requirements to A/C for bathrooms.

After a building department reviews the plans, they often return comments that

need to be addressed before the plans are approved.

When you work with a franchise architect

Scott Lasky

these comments will be sent directly to the

improvement dollars to correct existing conditions.

and work with you to correct any changes

Our clients realize savings on average of 5-8% for build-outs in existing spaces and also consistently see savings in new spaces.

architect who will quickly answer them that may need to be made to the plans.

This direct relationship between

the franchise architect and building

department will save you time, headaches and money.

3

Could a franchise architect help me save money on my retail lease?

We would be happy to share our knowledge and experience with you and help you save time and money as you begin the journey to becoming a franchisee.

systems, fire sprinklers, fire alarm systems,

Lasky Architect, P.A. has been providing franchise architectural services for over 35 years and is licensed in 30 states & D.C. which provides full service Franchise Architecture | Interior Design | In-House Engineering specializing in the franchise industry.

they can often get you additional tenant

For further information go to: www.laskyarchitect.com

Yes. If a franchise architect is brought

into a project before a lease is signed they

will often save you money on construction costs (plumbing, electrical, HVAC

finishes, etc.). In addition, if they are good,

2

Why do I need original architectural plans created for my location?

Every city and state in the country has its own minimum building code requirements that must be met. Building departments do not allow drawings from one location to be used for another location. They cannot be photocopied and re-signed. Each set of architectural drawings that are submitted to a building department must be original and drawn by an architect who is licensed in that state.

The architect must personally sign and seal the plans in order for them to be accepted by a building department during the permitting process.

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Christopher Conner, Franchise Marketing Systems

Building a Better Business Plan to Franchise Your Business

The first stage of planning for success in the field of franchising is to prepare and build a solid strategy and foundation for the expansion model.

Much like a tall building, the franchise program will have little to stand on without a good foundation.

Franchise strategic planning is similar to many business plans, but focuses more on the expansion model than the business itself. When an entity makes the transition

Franchising USA

to franchising, the business goes through an evolution. One where the product being sold is the business itself, the customer purchasing that product is an investor who will typically be an employee of the business and the founder of the business transitions to mentor and guidance counselor.

In building a solid franchise strategy, I first recommend “packaging” the business, maybe first in your mind, then of course on paper, with technology, processes and documentation, but first, decide what is this model that the franchisee will be replicating? Many times an entrepreneur handles more aspects in the corporate business than what a franchisee will be tasked to do upon opening which can be a good thing. Franchisees thrive in simple, structured environments with fewer

variables left open. Maybe you decide to shorten the menu…possibly decrease the amount of services offered or it could be that the franchisee won’t be operating a production facility, only the retail portion of your business. Regardless, the franchise business plan should define this model clearly and accurately in order to understand the product being sold as the franchise program takes shape.

The next stages of franchise strategic planning should revolve around research.

This research should be strategic in nature and focus on the franchise market, not the consumer market. We aren’t interested in the product or service provided to your customer as much as we are the franchise comparison to similar franchise brands.

Who offers a similar franchise model based in your industry? What success

“Understand your consumer demographics.

Know your territory analytics and have a good plan in place for how to position your franchised units.”

stories have there been in your industry throughout the franchise market? In most cases, there are examples of good, bad and ugly ways to approach the franchise market, we typically suggest replicating the good and avoiding the other two options. By coordinating FDD’s from competing brands, interviewing people in the industry, even visiting some competing franchise brand locations if possible, you will be able to formulate your strategic mission and understand the best path to success. Every franchise has a value proposition, it is important that you understand what your brand brings to the market and how you will effectively attract, sign and retain franchisees for your system.

As your franchise concept takes shape, you now should begin to lay the framework

for the financials, fees and other relevant numbers to the expansion plan. Franchise fees should be determined by reviewing the costs associated with training, support, sales and marketing related to franchise management. A validated franchise fee should be able to be explained to a buyer and easily understood. You will fail if the impression is given that you picked numbers because you thought they sounded good, you approached the market with confidence and an understanding for what each franchisee gets out of the relationship and why the numbers add up to a strong value proposition. Royalties, the primary profit center for most franchise systems, are absolutely critical to the success or failure of any franchise system, understand what the ongoing percentages mean to both the franchisee and franchisor in your model and confirm that the fee structure lends itself to a profitable and meaningful relationship between both entities. Advertising requirements should encompass national, regional, local and cooperative strategies and each need to be managed delicately in order to provide franchisees with a meaningful benchmark to spend on building the brand in their market. Because franchising is a business of scale, the magnitude of every decision you make related to your business, your model and your brand is increased significantly, one wrong move up front replicated many times through franchisees could be disastrous for your business.

Then it’s time to begin to understand markets. The franchise business plan should delineate which markets make the most sense for your company. Understand your consumer demographics. Know your territory analytics and have a good plan in place for how to position your franchised units. Territory disputes lead the list

Christopher Conner

in categories for disgruntled franchise relations. Spend the time and make the investment necessary to fully grasp how and where to place your franchisees in order to avoid cannibalization and underutilization of markets.

A Franchise business plan should lead the way for a franchise expansion model. The vision, mission, competitive landscape and clear directives related to how to accomplish your growth goals should be explained, documented and most importantly validated as to why they are attainable and how you have come to these conclusions.

Christopher Conner of Franchise Marketing Systems Mr. Conner has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting.

Christopher has worked with multiple International franchise and licensed organizations throughout the United States, Middle East, India and Europe.

He has an MBA in Finance and Marketing from DePaul University in Chicago and a Bachelors Degree from Miami of Ohio.

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focus

T he I nter face Fina ncial G roup

we are growing again...

The Interface Financial Group (IFG) is growing again with expansion plans for dynamic growth in 2015.

IFG started operations 42 years ago in a small town in Connecticut, USA and after about a year of operations in the United States, IFG relocated to Canada in the greater Toronto area. They operated there for about twenty years before they grew into a franchise organization.

The Interface Financial Group had, over the first two decades of their life, serviced a very specific marketplace with a very specific financial service. IFG grew up as

Franchising USA

an invoice discounter assisting businesses

to discount all of their receivables for a

there is nothing unusual in that service.

The service that has developed in the

in accelerating their cash flow. In itself

It has been accepted and widely used in major financial centres for many, many years.

period of a year or more.

major money markets of the world has also evolved into a ‘highend’ service inasmuch as traditional invoice discounters will

The IFG twist to the service was their

not look at business below a fairly high

simplistic approach to how they worked

Interface founder, Mr. John Sheehy saw

unique approach to the market and their with their clients. In its traditional form invoice discounting usually takes the

entirebook of receivables that a company

has, and they are pledged to the discounter in return for a revolving line of credit

against those invoices. It is an ongoing

arrangement whereby the client, the user of the service, contracts with the discounter

threshold.

the opportunity to break into a market

that was almost totally un-serviced with a similar service offering. He brought

invoice discounting to the small business world. He did away with the concept of

having to have a certain level of business to qualify and, equallyimportant, he did

away with the need for a contract pledging

“With recent changes in the approach applied by most banks, the small business sector continues to be the hardest hit when it comes to finding a credit facility from their bank.”

100% of a clients’ business over a long time frame.

What he created for small business users was a ‘use-it-as-you-need-it’ service.

He offered his clients an opportunity to accelerate their cash flow, and hence their growth, by turning a single invoice or a batch of invoices into instant cash, with basically no restrictions.

If we fast forward some 40+ years, we find that Interface is still doing the same thing in the same small business marketplace.

With recent changes in the approach applied by most banks, the small business sector continues to be the hardest hit when it comes to finding a credit facility from their bank.

While Interface is still providing an ‘in-demand’ service to their small and medium-sized clients that are in an expanding mode, some things have changed. The most radical has been the delivery method employed by Interface.

IFG started with their roots firmly in a one-office environment. While they were able to market their service on a national basis, it was evident that their local market invariably produced the greatest volume of business with the best quality.

No one likes to see marketing efforts not being adequately fulfilled, and to some extent that was starting to happen at IFG. The solution was to create a delivery method that would service more than just one location. Franchising was the chosen expansion option as it gave IFG the opportunity to grow in a rapid but controlled environment. Having decided that the IFG system would ‘franchise’, John Sheehy and his team went about the task of crafting an invoice discounting franchise - the first of its kind in any financial market area.

As the franchise became established, it proved that having the ability to handle

business on a local basis and face to face with the clients was a tremendous asset, not only from a control point of view for IFG but also from a relationship point of view from the client. Small business owners like to meet the individual that is helping their business grow, and they like it even better when IFG actually meets them at their place of business.

Turning Interface into a franchise operation also proved to be the turning point for their growth. Since franchising in a local Canadian territory, Interface has seen exponential growth in many directions. A natural evolution for Interface was to move in the much larger United States market. While not the largest market in the world, the US market is very geographically challenging. Franchising proved to be a good fit because it helped to overcome many of the geographical challenges a more conventional company structure would encounter.

Franchising also proved a very robust model for Interface as it grew a strong footing in the US with a very substantial market size. Interface next expanded beyond their North American boarders with an operation in New Zealand where the population base is only approximately four million people, and the economy is vastly different from the North American size that IFG had become accustomed to.

Once again, with the recruitment of a local Master Licensee a network of Interface offices was quickly established to the point where franchisees in Canada, The United States and New Zealand were all enjoying a solid business opportunity with their franchise, and an opportunity that generated a very acceptable return on their working capital. All of this while assisting in the growth of their small business clients, and naturally the growth of the local economy.

David Banfield

More expansion has followed over the years with operations in Australia, Singapore, Mexico, Ireland, The U.K., and South Africa being the most recent addition to the network. In all areas IFG services the same market and operates in a consistent format through a license and franchise type format.

Over the years Interface has grown from being the only provider of this service to the small business market, to being the market leader. Certainly others have seen the merits of the business, and a very limited amount of competition has evolved. What has not been replicated over the years is the unique distribution method pioneered by Interface through a wellestablished franchise or licensed system.

That approach remains as one of the key elements not only for the success of IFG, but also for the success that licensees and franchisees enjoy.

With a solid foundation, Intºerface plans a substantial increase in business in 2015 and the coming years.

With a service that brings considerable benefit to the user, Interface is well poised to meet the demand created by ongoing growth.

The franchise model is now very robust for franchisees with a unique leverage situation to limit risk and enhance returns for franchisees.

With over 40 years of history and experience and an International network already established, Interface is well positioned to grow again. www.interfacefinancial.com

Franchising USA

focus

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ex per t advice

Lynne Shelton, Senior Partner, Shelton & Power

Which Franchise to Buy

When Financial Numbers Lead and When They Lie

Part 2 in a 3 Part Series

The Territory Openings

Lynne Shelton

As with every rollercoaster trip in life, to every down there is an upside.

So what can today’s prospective franchisee’s take away from these figures?

Along with that question and possibly more importantly, how can they use them to their advantage? I propose that there are three main points to be learned from the figures that the prospective franchisee should view as a positive outcome from the previous decades default rates; there are territory openings, the franchisors have learned some very important lessons which can be applied to the future, and the franchise systems are using the lessons learned to pave the way to future successes.

Franchising USA

There are openings where previously territories were closed. Okay, it may sound entirely morbid but one person’s failure can be your gain. Many franchise agreements have a clause that states that if you default on a loan, a lease or any other approved vendor agreement; you have also defaulted automatically on your franchise agreement which can result in a termination of your franchise. Therefore, many of the franchisees that defaulted on their SBA loans were terminated and thereby that franchise territory may now be available and up for sale again by the Franchisor.

Occasionally, the Franchisor may have chosen to keep the franchise open to the public and under Franchisor management until the franchise unit can be resold.

These units can be a great goldmine when located in your chosen territory. As you will not have to initiate or grow the territory as much since it has already been done for you by the previous defaulted franchisee and the corporate Franchisor.

Thus the fact that some franchisees are closing can be a great upside to you while concurrently being a tragedy to the defaulting franchisee.

Franchise Systems Report Lessons Learned Franchisees can struggle to repay loans for a myriad of reasons, cites The Journal, including changes in consumer tastes,

costly industry regulation or a weak overall economic climate, as well as bad decisions on location or marketing. But some also blame the Franchisors for providing insufficient training or ongoing support; for charging excessive startup fees; or requiring high or excessive operational fees.

Moving forward, be sure to question the Franchisor on what they have learned from the defaults? Perhaps more importantly, ask the Franchisor if they have changed the system and its requirements because of these failures.

Many of the Franchisors on the SBA list are taking action.

Quiznos stated in response to making the top of the worst defaulting franchise systems SBA 7(a) loan list that they are in the process of “making long-term changes to our business model to help improve restaurant profits.” iv Cold Stone Creamery - The Journal report states that Cold Stone’s extreme growth “that occurred in the years immediately preceding the downturn” that resulted in the failure rates, are now rumored to have even redrawn their preferable territory locations.

Stephen Smith, the founder and CEO of tanning-salon franchise system, Planet Beach, stated that they have hired an independent research firm to dig into the failure rates. Mr. Smith stated, he has spent the past three years expanding his

“Thus the fact that some franchisees are closing can be a great upside to you while concurrently being a tragedy to the defaulting franchisee.”

brand’s business model to include new services like massage therapy and teeth whitening, and has invested hundreds of thousands of dollars in new technology.

The CFO of Huntington Learning Centers Inc., (a tutoring franchise system), Jim Emmerson, says most of the franchisees that ran into trouble had problems caused by the recession. “The crisis impacted our system tremendously,” adding that the company in 2012 lowered its initial fee and size requirements for new buyers and has since made other changes aimed at better helping its franchisees succeed.

Some Franchisors also offer discounts to entice buyers to purchase multiple units at once. This helps Franchisors laser focus their support, training and ad placement efforts on fewer franchise owners, while growing the brand simultaneously. i Franchise Brands With Higher-Than-Average Default Rates.

Last confirmed October 20, 2014. Found online at: http:// online.wsj.com/articles/some-franchise-brands-have-higherthan-average-default-rates-1410392545. ii Overall Federal Reserve Loan Charge offs. Last confirmed October 20, 20914http://www.federalreserve.gov/releases/ chargeoff/chgallsa.htm iii Discussions with Al Wells. Retired GE Aviation employee.

March 10, 2012. iv Sarah E. Needleman and Coulter Jones. Franchise Brands With Higher-Than-Average Default Rates. Last confirmed October 20, 2014. Found online at: http://online.wsj.com/ articles/some-franchise-brands-have-higher-than-averagedefault-rates-1410392545.

Ms. Shelton in a previous life was a franchisor of a large franchise system, and is currently a Senior Partner at Shelton & Power franchise law firm.

Shelton & Power Attorneys have 25+

years’ of business consulting, franchise and trademark experience. Our knowledge facilitates an understanding of a large variety of businesses, services and technologies. We help businesses protect their brands through Trademark, Copyright, and Business contractual transactions. These services allow us to “Expand their Brand” through Franchising. For existing Franchisors, we provide full outsourced in house counsel.

Shelton & Power additionally works with entrepreneurs buying franchises by assisting with Business Creation, Industry Evaluations, Franchise Disclosure Document Review, Fairness Factors, Opinion Letters and Negotiations.

For more information or to schedule a customized consultation for your business you can write to franchising@sheltonpower.com or call (866) 99-FRANCHISE.

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franch ise & services directory

All About Loving Care, Inc. All About Loving Care, Inc. is designed to assist people maintain an independent lifestyle.

We provide the means for all our clients to remain in the privacy of their own home.

We believe in treating each client with respect, compassion, and dignity, and strive to meet each client’s physical, emotional, and financial needs.

We offer non-medical home care for those in need of assistance with their day-to-day activities.

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.

Bin There Dump That Bin There Dump That is a mini disposal container system and we’re FRANCHISING IN YOUR AREA! This is a franchise business that can be up and running quickly. We invite you to imagine yourself operating your own successful mini disposal business, providing cost effective solutions to customers who appreciate your service.

The time is right for Bin There Dump That. We are a low-tech business whose systems are recognizable and repeatable.

We offer services that are systematic. The process is easy to teach and easy to learn. In no time you will be answering customer’s requests for bins and building a strong, robust client base.

Come and get your piece of this SIMPLE TO OPERATE business that has a reasonable entry cost, offers exclusive

Filta Enviromental Kitchen Solutions The Filta Franchise is described as a mobile vacuum-based fryer management company. Serving 5,000 customers a week on average from 130 Filta Franchise Owners and hundreds of Service Technicians all over the United States.

Micro-filtration of oil and fryer management may not be a franchise you’ve considered yet. However, first consider the demand from customers. Filta’s customers save a great deal of money in oil costs, less accidents and labor in their operation. FiltaFry, a core service of the company, claims to save customers up to 50% in their oil usage.

Second, consider reports which now show food service industry sales to exceed $683 billion in the US alone.

Franchise Dynamics, LLC Franchise Dynamics is a full-service franchise sales outsourcing firm. We provide our clients with world class consulting, training, lead qualification services and full service franchise sales, building the next generation of leading franchisors around the globe.

Franchise Dynamics provides a full suite of services on an ongoing basis, allowing our clients to focus on their operations and marketing.

We provide start to finish franchise development for our clients. We recommend and manage lead generation marketing, distribution of marketing

Franchising USA

The clients we service range from those newborns to the elderly and with conditions ranging from Autism to Alzheimer’s.

We are a non medical home care agency specializing in Senior care. Our services include but are not limited to 24 hour care, hospice care, personal care, respite care, meal planning and preparation.

Phone: (877) 822-0211 Fax: (310) 301-0004 Website: www.allaboutlovingcare.us

• 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

territories, full training, marketing materials, lead programs and offers you over 100 years of experienced franchisor support!

Enjoy the benefits of non-competitive relationships with other Bin There Dump That dealer/owners across North America. Share in a pool of knowledge that will assist you in maintaining competitive market advantages.

Learn key success factors from the pioneers of the mini roll off container systems. Create an organization designed to maximize productivity while controlling costs.

Contact: John Ferracuti Phone: 905-823-8550 Email: john@BinThereDumpThat.com Website: www.BinThereDumpThat.com

Both points make it clear to see the unique position Filta has and how it’s directly keyed into the growth of the food service industry.

For a Filta Franchise Owner, this means an in-demand value based service, which everyone can agree is the cornerstone of any successful business. Not to mention, offering a service which prevents workplace accidents is just good for you, your business and your customers.

Want to learn more about becoming a Filta Franchise Owner?

Address: 7075 Kingspointe Pkwy #1 Orlando, FL 32819 Phone: 407-996-5550 Fax: 407-996-5551 Website: www.filta.com Email: ablake@filta.com Please send leads to franchiseleads1@filta.com Contact: Adam Blake, VP of Franchise Development

materials, disclosure documents and manage all leads through the franchise sales process. The Franchise Dynamics team on each project looks, feels and operates like a member of the franchisors’ internal organization, working with marketing, operations and executives and staff to coordinate activities. Our fulfillment model is shared risk; unlike other competitor companies, we never take a portion of either royalty or equity from our client companies.

Contact: Robert Stidham Email: info@franchisedynamics.net Website: www.franchisedynamics.net

Franchise Foundry Franchise Foundry is truly a business accelerator with specific focus on franchising.

The Foundry team has years of experience building businesses and understands the unique challenges that emerging franchisors face.

growth initiatives and form proactive interdependent relationships at all levels.

• To assist early-stage and mature franchise brands (USA & International) that have not yet achieved levels of success per stakeholder expectations with customized change management programs developed and launched within a re-incubation process.

• To ensure success of franchise start-ups through development and execution of comprehensive strategies and deployment of key business support resources.

• To focus primarily on franchise brands in various industry segments including children’s products & services, home products & services, consumer products & services, B2B professional services, commercial services, home-based businesses and unique food concepts.

• To create positive cultures, implement franchise best practices, build solid foundation for strong unit-economics, introduce effective technologies, develop & launch practical

Website: www.FranchiseFoundry.com or Email: Deb@FranchiseFoundry.com Phone: (832) 838-4822

International Franchise Professionals Group

IFPG to power their business. All of these individuals understand the value of being associated with IFPG.

Our Mission

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.

Income Store

Generating” websites for individuals, groups and funds. They refer to the individuals, groups and funds as “Site Partners”.

Income Store takes the real estate agent model to another level. Not only does Income Store find revenue generating websites, they buy, manage, market and further monetize the website for their Site Partners.

We are an Inc 500/5000 company as of 2013 and over 5 years of business growth.

What if a store carried income items that produced $500 / month to $20,000 / month? Although sounding a bit “Too Good To Be True”, that store exists.

You can find it at www.incomestore.com We are looking for capital investments of $50,000 to $700,000 to put a partnership together with you. We buy it with you and run the business for you. We maintain and grow your online business as you do other things. Watch our videos on IncomeStore.com and TodaysGrowthConsultant. com web sites for more information.

Similar to a real estate agent, Income Store finds “Revenue

Jimmy’s Fries & Shakes Jimmy Britz was serving in the US military in Hamburg, West Germany during the cold war.

After retiring from the army, he moved to Quebec, Canada, where he moonlighted as a DJ. He found something else though as well. He found a new favorite food, and it ended up being a food which would change his life forever. Poutine.

Poutine is a simple dish, the base being French fries covered in brown gravy and cheese curds. Of course, there are many places in Canada to get the dish, and each one puts their own spin on it.

Income Store uses the term Site Partner because they have skin in the game. Instead of getting paid an upfront fee, like a real estate agent, Income Store receives a revenue share on each site purchased.

Income Store is unique on many levels.

Phone: 877-627-1213 Website: www.Incomestore.com Email: mengstrom@incomestore.com Contact: Mike Engstrom

Jimmy had it and fell in love, and found himself shocked that the dish wasn’t more popular in America. ‘Jimmy’s Fries & Shakes‘ has been nominated among the 100 fastest growing franchises in 2014 in America by Franchising Today.

The restaurant offers poutine, Canadian dishes and its signature milkshakes. Jimmy’s have recently signed a multimillion franchising deal with a master franchisor in Dubai, United Arab Emirates. That franchisor is expected to expand Jimmy’s Fries & Shakes throughout that region.

Franchising queries: franchising@jimmysfries.com General queries: info@jimmysfries.com www.jimmysfries.com

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

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

Franchising USA

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fr a nch ise & serv ices di r ecto ry

LoyaltyGenerator LoyaltyGenerator provides a fully-managed, automated, cloud-based cross-media marketing platform that incorporates prescriptive analytics to empower franchises of all sizes to simply, predictably and profitably generate intense customer loyalty.

With LoyaltyGenerator, franchisors can systematically define and drive the loyalty story at any level of their value chain, controlling brand

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”

Money Mailer Money Mailer Franchisees are marketing consultants, showing neighborhood business owners how to target their best prospects with compelling offers delivered in the mail, on the Internet, to mobile devices and on social media.

This integrated marketing solution is provided to each business for literally pennies per household. We are the only national franchise laser-focused on local businesses, one of the most under-served market segments in the Country. Local business owners do not have the time or internal resources to develop this marketing expertise on their own so franchisees become an internal ad agency resource creating monthly repeat business potential in each protected territory.

Innovators like Annex Brands trust LoyaltyGenerator to automatically deliver the right message to the right customer on the right channel, at the right time. Just set it and forget it.

We’ll take care of the rest.

For more information about increasing your customer loyalty, please visit: www.loygen.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.

Money Mailer’s revolutionary “GPS” (Goals, Process & System) franchise package provides an exclusive 2 -year performance based funding platform that gives new owners a clear and direct path to success as they open and build their business. It also includes one week of classroom training, 4 weeks of “Boot Camp” at Money Mailer’s company store, 2 years of $0 royalty and a personal Franchise Performance Coach to assist in a successful launch in your own territory.

Money Mailer’s training and ongoing support is unrivaled in franchising.

Phone: 714.889.4698 Website: www.franchise.moneymailer.com Email: franchiseleads@moneymailer.com

Pop-A-Lock™

grown to serve 8,500 communities throughout the U.S. and Canada.

Pop-A-Lock™ is the most trusted team of security professionals in North America.

While Pop-A-Lock’s main focus is on emergency automotive locksmith services, we also offer a full range of services for your home and business security. In addition, we are proud to have created the PAL Saves Kids Program – a free community service dedicated to saving children who are inadvertently locked in vehicles.

It was founded in 1991, in Lafayette, Louisiana by two law enforcement officials who recognized the need for security services in their area.

Due to years of dedication to pride in service and customer satisfaction, Pop-A-Lock has developed a reputation for fulfilling customer needs quickly and professionally - and as a result, the company has

Contact: Michael Kleimeyer Email: MichaelKleimeyer@systemforward.com Website: www.popalock.com

Sherpa Kids

Each member of the Sherpa Kids Franchise System has an important role to play.

Sherpa Kids will work and engage with all stakeholders to ensure continuous learning that meets children’s needs. We pride ourselves on creating a nurturing and caring environment for the care of your school-aged children. We do this through a structured and wellbalanced program in before, after school and vacation care services.

The success of every individual Franchise strengthens the Sherpa Kids brand. A growing Franchise System means greater marketing and advertising power, more brand awareness, higher market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies.

Become a Sherpa Kids Country Master Franchisee and make an investment on two levels.

Your new life will be rewarding financially and personally as you help school communities and franchisees achieve their business and lifestyle goals.

Franchising USA

continuity and consistency from the top-down, while selectively enabling franchisee autonomy from the bottom-up.

Already operating in 6 countries – Australia, New Zealand, South Africa, England , Canada and Ireland.

Contact: Vicki Prout Email: vicki@sherpa-kids.com Phone: +61 8 8354 4886; Mobile: +61 4 3980 3078 Website: www.sherpa-kids.com

Smoke’s Poutinerie Smokes Poutinerie is the Worlds Largest & Original Poutinerie; inventing and leading the quick-serve Poutine industry, offering over 30 types of Gourmet Poutine.

The exclusive Poutine menu plays a very significant role with its Signature Gravy, Fresh Hand-Cut Fries, Squeaky Cheese Curds and an unlimited combination of toppings like double-smoked bacon, flat iron steak, grilled chicken, caramelized onions, sautéed peppers and many more mouthwatering options.

There is no slowing down the Gravy Train, with Smoke’s Poutinerie expanding exponentially since its debut on the Franchise scene in 2009. Boasting a whopping 100 locations Coast to Coast in Canada and kicking it into high gear with its expansion into the U.S., Sports & Entertainment and International Markets.

The first official U.S. location recently opened in Berkeley, California where customers were lined up around the block anxiously awaiting their first bite! Next up, Smoke’s Poutinerie Las Vegas, Hollywood, New York City and numerous other states and cities.

The Smoke’s Poutinerie goal is to bring this authentic, quality Canadian dish to the rest of the World in their own original and unique way.

Phone: 905 427 4444 Website: www.smokespoutinerie.com Email: franchises@smokespoutinerie.com

Spherion Staffing Services

industries. Specializing in administrative, light industrial, contact center, non-clinical healthcare and professional placements, we offer a comprehensive range of workforce solutions to fit the unique needs of our clients. Operating through a network of 175 franchise locations, Spherion has distinguished itself as a local staffing partner providing personalized service, backed by the resources and breadth of a $2 billion workforce leader. Last year, we connected more than 170,000 job seekers to 3,000 companies nationwide, and the numbers continue to grow. We are a strong community of owners that genuinely love what we do and it has earned us a reputation of excellence in our industry.

Join the ranks of an established recruiting and staffing leader!

As a Spherion franchise owner, you will be well-positioned to create a successful future for yourself and you’ll have a stake in helping others make a better life for themselves through rewarding employment opportunities. This is the passion that drives our business every day and the financial rewards are just as exciting. One of the fastest growing industries, staffing is projected to grow six percent annually and reach $115 billion this year. Spherion owners produced more than $500 million in annual sales last year alone. It’s an ideal opportunity for an entrepreneur to step into and begin building a thriving business.

Since 1946, Spherion® has been supplying flexible, tempto-hire and direct-hire talent to companies of all sizes and

Stratus Building Solutions Founded in 2004, Stratus Building Solutions was developed to provide a superior, environmentally friendly commercial cleaning experience driven by dedicated, entrepreneurial, small business owners.

Now under new ownership, the company continues to grow upon these standards and is expanding on the idea that through commitment and a loyalty to exceptional service, your own commercial janitorial service franchise has unlimited earning potential.

For the past 15 years, Stratus Building Solutions has developed into a household name in the janitorial service industry. Offering professional training programs, multi-level business support, state-of-the-art cleaning equipment, Green

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

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

To learn more, please contact Bill Tasillo on our Market Expansion Team at 404/964-5508 or go to www.spherion.com/franchise

Seal Certified, biodegradable, non-toxic “Stratus Green Clean” chemicals, 24-Hour emergency services, Stratus Building Solutions is second to none in the commercial janitorial service industry and the pursuance of cleaning for health.

With customizable cleaning options and our great rates, Stratus Building Solutions provides services to a large range of clients, from schools, medical offices, shopping centers, warehouses, dealerships, religious centers, professional offices, daycares, retail stores, gyms and more.

Contact us today at: Phone: 888-981-1555 Fax: 818-960-0070 Email: inquiries@stratusclean.com Web: www.stratusbuildingsolutions.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

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

Franchising USA

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2015 International Franchise Association events Franchise Development Seminar

April 23, 2015

The Marquette Hotel // MINNEAPOLIS, MN

Legal Symposium

May 3-5, 2015

CHICAGO MARRIOTT DOWNTOWN // CHICAGO, IL

Franchise Development Seminar

IFA Summer Board Meeting

Marriott Marquis // WASHINGTON, DC

GRAND TRAVERSE RESORT & SPA // TRAVERSE CITY, MI

June 4, 2015

Public Affairs Conference & Fall Leadership Meetings September 28-October 1, 2015 JW MARRIOTT // WASHINGTON, DC

June 14-17, 2015

FranTech: Digital Marketing & Technology Conference

October 27-28, 2015

InterContinental Dallas // DALLAS, TX

Check franchise.org regularly for updates!

Franchising USA

IBA/IFA Joint Conference

May 5-6, 2015

CHICAGO MARRIOTT DOWNTOWN // CHICAGO, IL

International Franchise Expo

June 18-20, 2015

JAVITS CENTER // NEW YORK, NY

West Coast Franchise Expo

November 12-14, 2015

ANAHEIM CONVENTION CENTER // ANAHEIM, CA

IFA Franchisee Growth Conference

May 17-18, 2015 LAS VEGAS, NV

Franchise Development Seminar

September 3, 2015

CROWNE PLAZA REDONDO BEACH AND MARINA // ORANGE COUNTY, CA

Emerging Franchisor Conference

November 17-18, 2015

INTERCONTINENTAL MIAMI // MIAMI, FL