Franchising Magazine USA Feature Supplement April 2023

Page 1

s hop s mart: h oW to Make a W I se Mu Lt I - u n I t InvestM ent APRIL 2023 laTEST n EWS in multi-unit franchising s outhern s teer b utcher continues Franchise g rowth Fo LLowing b rand s uccess COVER STORY w hy i s m ulti- u nit f ranchising s uch an i mportant topic r ight n ow?
www.franchisingmagazineusa.com Don’t miss an issue Get the App 10 Franchising Maga in Usa Singam discovered Fazoli’s when he lived in Flagstaff, Arizona in the late 1990s. He continued following the brand over the years and was impressed by Fazoli’s evolution and response to consumers’ ever-changing dining habits. Specifically, Singam has taken note of Fazoli’s dedication to menu innovation – from the addition of Snacks & Shareables to wings and premium baked dishes – which has resulted in his new favorite item. “I was always watching how they evolve. The brand is incredibly resilient, and was encouraged watching them develop new systems to continue supporting their growth across new markets,” Singam said. Earlier this year, Singam opened his first of many planned Fazoli’s location at 3800 E. Sky Harbor Blvd. inside Terminal 4 between gates B6 and B13. His second location is already underway and his restaurant holding group will be opening its first street side Fazoli’s at 953 N. Dobson Rd. in Mesa later this year. It Coming off the heels of his highly anticipated new restaurant opening in Phoenix, AZ, Nava Singam is taking Fazoli’s by storm. As the CEO of Kind Hospitality, a familyowned restaurant group which operates well-known brands including Macayo’s Mexican Food, Panera Bread, O.H.S.O. Brewery, Barrio Brewing Co., Native Grill & Wings and now Fazoli’s, Singam is successful multi-unit franchisee that brings decades of experience to the quick-service Italian brand. Before building his own restaurant franchising empire and becoming one of Fazoli’s largest franchisees, Singam worked his way up from restaurant operations to ownership with his first endeavor coming in 2005 where he owned and operated Paradise Bakery at Phoenix Sky Harbor Airport. Since then, he’s helped build and develop his collection of restaurants growing from just one location to more than 30 locations “ Fazoli’s definitely has a cult-like following and for good reason. When we were considering expansion and growth opportunities at Kind Hospitality, we knew we made the right choice after going viral from the initial announcement.” cover story: Fazoli’s Franchisee nava singam taking Fazoil’s by storm across four states and has added more than 1,400 employees to his team. Singam’s two daughters and wife Leticia have been instrumental in the development of the company, offering support and inspiration through the growth of the company. His latest franchise endeavor includes Fazoli’s, a beloved Italian concept founded in 1988 in Lexington, Ky. Fazoli’s owns and operates nearly 220 restaurants in 28 states, making it the largest premium QSR Italian chain in America. Fazoli’s prides itself on serving premium, fast Italian food menu offerings such as freshly prepared pasta entrees, subs, salads, pizza and desserts – along with its unlimited signature garlic breadsticks. “Fazoli’s definitely has cult-like following and for good reason. When we were considering expansion and growth opportunities at Kind Hospitality, we knew we made the right choice after going viral from the initial announcement,” Singam said. “ Singam was also the first to offer the brand’s breakfast daypart, serving up new items including Hot Honey Chicken and Egg Breakfast Sandwiches, Cinnamon Swirl Breadstick Bites, Breakfast Burritos and so much more.” VOL 11, ISSUE 4, APRIL 2023 The magazine for franchisees WWW.franchsingmagazine U sa com COVER STORY annOunCEmEnTS fROm ThE induSTRY branding tips for success smart savvy strategies SpECial fEaTuRE multi-unit franchising franchise relationships advice for emerging brands Franchisee nava singam taking fazoil’s by storm franchising news

MU l T i- U ni T F ranchising

46 Beans and Brew: strategy to grow, and grow smarter, with Multi-Unit Deals Expert

44 Megan Boyd: Why is Multi-Unit Franchising such an important Topic right now?

50 Jim Boccher: attract large investors to Your Franchise By learning how to Build a great Team

Women in Franchising

48 Express Employment Professionals alyssa chumbly Demonstrates that success is not dependent on gender

Franchisee in Action

42 Paymore: Used Electronics resaler, attracts longtime restaurant franchisees looking for a Multi-Unit investment

52 lapels: Michael Eisner, Multiple Franchises Post covid

Franchising M aga Z in E Usa 33
contents
New 34 Franchising News Announcements from the Industry Cover Story
Franchise
Feature Article
shop smart:
Make
Multi-Unit investment 38
in Depth
What’s
38 southern steer: southern steer Butcher continues
growth
40 Chris Conner:
how to
a Wise
Franchisor
Advice
46 42 50

Tammy Feaster Earns Prestigious Recognition as 2023 Franchisee of the Year

spherion staffing and Recruiting (spherion) is elated to announce today that its very own Tammy Feaster was recently recognized as one of the “Franchisee of the Year” recipients at the international Franchise a ssociation’s (i Fa) 2023 annual Convention in l as Vegas.

“We’re incredibly proud of Tammy for this achievement,” said r ebecca r ogers Tijerino, group president of spherion. “But i am not surprised. she won spherion’s Franchise o wner of the Year award last year, and really, she’s been unstoppable since she got into the industry - which was when she was in high school, part of a co-op program. Tammy is a testament to the power that comes when business and education work together to empower students with true work experience to build their leadership confidence early. Tammy was committed to the previous spherion franchise owner, worked hard to purchase the business, and now she’s being recognized as a top franchisee in our entire industry. spherion is lucky to have her; the whole staffing industry is lucky to have her.”

“ i am so honored to receive this recognition from the iFa .,” said Feaster, who owns offices in Maryland, Pennsylvania, Virginia and West Virginia. “ i love spherion so much, and love what i do every day. it’s fantastic to be able to see all that hard work paid off. i ’m so appreciative for the support from my incredible teams, our clients, candidates and of course the spherion franchise community. i ’m honored to represent our brand with this achievement.”

To learn more about spherion, visit https://www.spherion.com/

Scottsdale Secures 2-Unit Franchise

Development

Deal with cLean e at Z Restaurant Brand

Clean Eatz, the award-winning wellness restaurant concept heralded as one of the fastest-growing concepts in its industry, has secured an agreement with Cory Dugan, a restaurant industry veteran, to develop two new franchise locations in the s cottsdale area. site selection is currently underway, with plans for the first venue to open its doors later this year.

Dugan joins the clean Eatz family after 30 years spent with Brinker international, a leading multinational hospitality company, where he served as Vice President of o perations for his final five years. a role he credits as having instilled him with an acute understanding on the importance of building relationships with guests, leading with passion and direction, and having purpose in everything that’s done on behalf of staff and the community.

“When my family and i decided to move back to arizona, i had planned on that being the end of my time in the service industry. But that was before we were introduced to clean Eatz,” Dugan said. “We’d buy dozens of their meal kits at a time and quickly became familiar with their culture and commitment to helping customers on their individual health journeys. i knew it was something i wanted to be a part of.”

“This latest deal comes on the heels of an additional 2-unit deal that was recently secured in the g lendale area,” said Evonne Varady, co-Founder of clean Eatz. she hopes to build on these numbers in the near future.

To learn more visit https://cleaneatz.com/franchise.

34 Franchising M aga Z in E Usa
M u L t I -un I t F r A nch I s I n G F e A ture StA nd- oU t e ntre P rene U r Honored by i FA At t H e o rg A niz Ation’ S Ann UAL con Ference

s eroton I n c enters to Open 6 New Franchise Locations throughout Boston

s erotonin Centers, an emerging wellness and anti-aging/ longevity franchise that is rapidly expanding nationwide, has secured an agreement to develop 6 franchise locations in the Boston area. site selection is currently underway in the western suburbs, including Newton and Dedham, with plans for the first location to open this fall.

The new s erotonin centers franchises will be owned and operated by steve and c asey Barker, who bring years of experience in franchising as the owners of two successful trampoline park franchises in the area.

“a s we sought out new investment opportunities, s erotonin centers rose to the top of our list not only due to relevance, demand and strong unit economics, but also because we align with the mission of boosting people’s confidence and quality of life through improved health and wellness,” steve Baker said. “Even more, Eric’s passion for anti-aging is contagious.

While steve comes to s erotonin centers with a background in financing, c asey holds a cosmetology license – another reason why an anti-aging and wellness franchise was a logical next step for the Bakers’ franchise business investments.

“ steve and c asey’s experience as successful multi-unit operators in franchising, coupled with c asey’s interest in cosmetology, will suit the s erotonin brand well as we enter the Boston market,” said c asaburi, founder and cEo of s erotonin centers. “Their business acumen and passion for helping Boston residents achieve their optimal health make them a perfect fit for our fast-growing national wellness brand.”

www.serotonincenters.com/franchising/.

Furry Land Looks to Rapidly Expand

doorstep. a s the #1 mobile pet groomer in america, Furry l and allows owners to customize their pets pampering at an affordable cost, using professional grade tools and hypoallergenic products.

“o ver the last six years, we have seen pet owners prefer in-home pet care and as we expand, we’re excited to partner with business owners who are passionate about keeping fur babies healthy and clean,” said cEo of Furry l and, nick Field. “o wning a Furry l and will allow local franchisees to be an independent groomer and provide their expertise anywhere.”

Furry l and – the mobile pet grooming franchise – offers licensed groomers and pet caretakers the opportunity to franchise as it expands nationwide.

Furry l and currently has over 30 markets and nearly 100 vans in operation, making routine grooming more convenient for owners as it brings the services to their

Furry l and is now actively seeking multiunit franchisees with a strong passion for animals and interest in providing an essential service to their home community. The estimated investment required to open a Furry l and franchise is $97,500$241,400.

To learn more about Furry l and, or if interested in a franchise opportunity, please visit https://furryland.us/.

Franchising M aga Z in E Usa 35
e x P erienced M ULti-Unit oP er Ator S Sign d e AL wit H FAS t- g rowt H Anti-Aging & w e LL ne SS Fr A nc H i S e
Mobi L e Pet g roo M ing Fr A nc H i S e e x P ect S to oP en 150 Loc Ation S in t H e n ext 3 y e A r S
the U.S.
Across
through Franchising Opportunities

Pete and Barbra Muller of tI nt Wor Ld® Awarded Franchisee of the Year by IFA

The international Franchise a ssociation (i Fa) today named Pete and Barbra Muller, owners of two Tint World® automotive styling Centers™ locations in o rlando, Florida, as two of its 2023 Franchisees of the Year.

The Mullers were honored at the 63rd iFa annual convention in l as Vegas for being outstanding franchise establishment owneroperators.

“Franchisee of the Year recipients represent the best in franchising,” said Matthew haller, president and cEo of the international Franchise a ssociation. “This is the highest honor iFa awards to individual franchisees, and local business owners like Pete and Barbra exemplify the power of franchising and its positive contributions to communities around the world.”

The Franchisee of the Year award, sponsored by iFa’s partner Paychex, recognizes leading franchise owners from iFa member brands whose outstanding performance and contributions help protect, enhance, and promote the franchise business model.

“Tint World® offers outstanding support and innovative franchise

systems that have driven our success in o rlando,” Pete Muller said. “We’re proud to deliver Tint World®’s premium products and services to the automotive community here and committed to continuing to meet their high standards and expectations into the future.”

“Pete and Barbra are dynamic representatives of the Tint World® family, and their success reflects their passion,” said charles J. Bonfiglio, cEo and president of Tint World®. “They provide a great example of the opportunities available through our innovative system and strategy.”

To find out more, please visit www.TintWorld.com or https://www.tintworld.com/franchise-opportunities.

restaurant

the Orlando market

states. s alad station now has its eyes set on o rlando, with a goal of finding new multi-unit operators to continue its national expansion.

s alad station – the fully customizable salad restaurant concept famous for serving farm-fresh gourmet ingredients – is looking to enter the o rlando market for the first time to capitalize on the recent economic growing of the city.

since it first began franchising in 2015, the s alad station brand has expanded into a multitude of new markets and has grown its pay-by-the-pound salad concept to 28 locations across five

“The active-outdoor lifestyle of the o rlando area is in need of the fast, delicious, farm-fresh ingredients s alad station has to offer. o ur brand delivers a unique customer experience that busy, health-conscious o rlando residents do not currently have as an option,” said co-Founder and cEo of s alad station, s cott h enderson. “We are excited to meet hungry and successful entrepreneurs who want to bring our passion for fully customizable gourmet salads to the o rlando market for the first time. Based on our Tampa customer base, we already know that our restaurants can be successful down in Florida. We believe it’s now the perfect time to take our concept right up i -4 into o rlando.”

With a franchise fee of $30,000, the estimated initial investment to open a s alad station franchise is $192,300- $373,800.

For more information on s alad station, or interest in a franchise opportunity, please visit www.saladstationfranchise.com/.

36 Franchising M aga Z in E Usa
M u L t I -un I t F r A nch I s I n G F e A ture
saL ad s tat I on – the fully customizable salad
concept is looking to enter
sUB s CR i BE To Franchising Usa’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week! wA nt to S tAy on to P o F t H e LAte S t new S A nd w HAt S HAPP ening At t H e F ore F ront o F F r A nc H i S ing? To subscribe visit: www.franchisingmagazineusa.com

b rand s uccess

Beloved community-focused butcher shop looks to continue exciting expansion throughout the upcoming year

southern steer Butcher, the popular community and education focused gourmet butcher and grocer franchise, is continuing to see tremendous business growth after a successful year, with more exciting plans on the horizon.

The brand looks to continue to provide more cities throughout the country with the highest quality meats and produce, friendly and knowledgeable staff, and a commitment to contributing back to the communities they love to serve.

Founded in 2013 by Greg Snyder, Southern Steer Butcher was designed to be a trusted source for customers to feel confident in their selections after each and every visit. The story all started after Greg made a visit to a similar style shop while traveling and recognized this level of butcher shop

“ With so many grocery options popping up, it is so important, now more than ever, for people to know and trust where their food is coming from.

38 Franchising M aga Z in E Usa
s outhern s teer b utcher continues f ranchise g rowth following
cover story:
M u L t I -un I t F r A nch I s I n G F e A ture
Southern Steer Butcher

was lacking in his own hometown of Clearwater, Florida. From then on, Greg set his sights on filling this need in his community and began work on launching Southern Steer.

“With so many grocery options popping up, it is so important, now more than ever, for people to know and trust where their food is coming from,” said Snyder.

“We take our role here at Southern Steer very seriously. Each of our locations are

staffed with educated employees who are trained to advise customers about proper cuts, marinades, and cooking techniques. Customers can rest assured knowing they are purchasing the highest quality, sustainably sourced meats and grocery items that they can be proud to feed their family and friends.”

Each Southern Steer location offers a wide selection of premium meats, sides, desserts, craft beers, and wine. In addition to the variety of products, the brand also offers pre-assembled meal packs. Every meal pack contains 5 meals with all of the required ingredients for each dish, all that’s left is to prep, serve, and enjoy. For those looking to be a bit more involved in the meal prep process, Southern Steer also offers prep classes. The classes are designed for each participant to fully prep and pack 10 meals, each serving a family of 4-5. Continuing to be a hit among customers, with many returning to the classes again and again to prep delicious meals for the whole family, and maybe learn a thing or two in the process.

“It is so exciting to continue to see the impact Southern Steer makes on each of the communities we enter,” added Snyder. “One of our biggest goals as a brand has been to positively impact the communities we serve. We are so proud of our giveback initiative, Project 52, which encourages each location to complete a charitable act for the community each week, for all 52 weeks of the year. We’ve seen such

about southern steer:

Founded in 2013, southern steer Butcher is a family-owned marketplace dedicated to quality customer service, healthy food options, and positive community impact. The brands core principles include always making guests the number one priority, having fun, and a commitment to quality.

The brand’s offerings focus on celebrations, daily dining options, and culinary education to drive innovation. Today, southern steer has 4 locations currently open in Clearwater, sarasota, o rlando, and Jacksonville, with another 3 in development.

For more information, please visit https://southernsteer.com/

tremendous feedback from both the stores and the community, and it is something we are proud to continue to watch grow in our stores.”

Since the brand began franchising in 2021, they have grown to four locations operating in Florida, with another 3 in development, plus commitments for 10 more stores. With their sights set on the future, Southern Steer projects doubling the number locations in its franchise system each year for the next several years. The brand is seeking both singleunit and multi-unit franchisees. Each individual should have an entrepreneurial spirit, strong people management skills, and a passion for providing great products and unmatched customer service to their community. The Southern Steer team aims to offer prospective franchisees the necessary tools to operate successfully through teamwork and strong leadership, while creating a first-class experience for guests.

For more information about Southern Steer Butcher’s franchising options, please visit https:// southernsteerfranchise.com/

Franchising M aga Z in E Usa 39
“ Each Southern Steer location offers a wide selection of premium meats, sides, desserts, craft beers, and wine.

s hop s mart:

40 Franchising M aga Z in E Usa Fe Ature ActIcLe: Chris Conner | Founder | Franchise Marketing Systems
h ow to m ake a w ise m ulti- u nit i nvestment M u L t I -un I t F r A nch I s I n G F e A ture

chris conner has worked in the franchise development industry for almost 20 years and helped over 600 brands franchise their brand and develop franchise distribution channels. He founded Franchise Marketing Systems in 2009, which now includes a team of 27 franchise consultants based in and Canada and supports brands around the world to grow and scale through franchise expansion. v isit www.fmsfranchise.com for more information

Recent years have seen more and more franchise investors seeking a package of franchise units. This type of ownership, called multi-unit franchise ownership, has seen a spike in popularity.

The most recent information from FRANdata shows that over half of all franchised units — 54% — are controlled by multi-unit owners. Some of the largest franchisees own hundreds of units across several different brands.

Whether you are franchisor looking to attract more multi-unit moguls or hope to oversee a small network of businesses as a multi-unit franchisee, here are some important key points to consider:

key Point #1: the bottom Line

Pursuing a sustainable investment plays out the same whether you are seeking a real estate property or a business. The decision begs the question — what’s the bottom line? Scrutinize the numbers, analyze the ROI, and take a good survey of the overall financials of the franchise before stepping into the model.

key Point #2: unit-Level Performance

Examine the economics of the business at a per unit level. A company worth investing in has taken the time to tailor its growth according to its capabilities, focusing on maximizing profitability for each unit rather than throwing all the darts at the board and hoping some stick. Intentional growth strategies make for more successful units and sometimes that growth is slow and steady. It’s better to own two remarkably performing units rather than four mediocre ones.

key Point #3: the 3 P’s

You have most likely heard the famous “3 P’s” of business — people, product, and process. Investors seeking to expand their portfolios with a franchise need to evaluate the business from this standard. Are the right people in the company’s leadership positions? Are the products and services well-defined, in demand, and sustainable? Are the processes streamlined and all gaps closed?

key Point #4: solid support system

Marketing, operations, training — what support modules are in place for the franchise? Does the franchisor have the capacity to support the growth rate produced by attracting many multi-unit franchisees? As you shop for franchises, find first-hand accounts of current franchisees and their experience with the support they’ve received.

key Point #5: allows for absentees

If a franchisee is to own several businesses at once, the system must be so fool-proof that the business can work for an absenteeowner as the business is scaled. Ensure the business allows for scalability and can further expand throughout the years. If you are a franchisor, it’s always a good idea to take a deep dive into every nook and cranny of your operations to make sure that your franchisee, whether single unit or multi-unit, has an efficient, strong blueprint to follow.

Multi-unit franchisees have the opportunity to make money faster, enjoy the benefits of a solidified system, and have several revenue streams all at once. Franchise Marketing Systems can guide you in some of the most experienced multi-unit franchises in the marketplace and help you find a fit that you’ll love.

To learn more connect with my team at: 800.610.0292

info@franchisemarketingsystems.com. www.fmsfranchise.com.

Franchising M aga Z in E Usa 41
“ Multi-unit franchisees have the opportunity to make money faster, enjoy the benefits of a solidified system, and have several revenue streams all at onces.”

USeD eLeCtRONICS ReSALeR, pAYMORe AttRACtS LONGtIMe ReStAURANt FRANChISeeS LOOKING FOR A MULtI-UNIt INVeStMeNt WIth BIG pAYOFF

PayMore Founders Set out to create an Easy-toOperate & Highly Profitable Buy-Sell-Trade Electronics

Retail Franchise That’s Thriving as Demand for Used Electronics Heats Up

starting with a single storefront in our hometown of Massapequa New York in 2011, our e-commerce and brick-and-mortar electronics resale business PayMore quickly exploded with high volume trade-ins, shoppers looking for deals on gently used electronics, and tremendous local support.

When we set out to begin reducing our society’s e-waste footprint, our store quickly became the highest grossing secondhand electronics dealer on all of

Long Island, and led us to acquire over 30,000+ customers, drawing national attention.

PayMore is the result of decades of industry and market experience. We are a buy, sell & trade business that puts cash in the hands of our customers in exchange for lightly used electronics of all kinds. We take anything from drones to drills to Dell computers to gaming systems and everything in between. We provide a safe alternative to online marketplaces, even wiping our customer’s data clean after the transaction. Our customers appreciate a green alternative to tossing old items, especially one that puts cash in their hand immediately.

We knew we were onto something and wanted to expand our business nationally quickly. In 2020, we partnered with the global leader in franchise development Fransmart, the company behind the explosive growth of brands including The Halal Guys, Five Guys Burgers and Fries, and Qdoba Mexican Grill and more. Since our concept is so unique, we targeted single unit franchise agreements in the early stages. There’s no one else in retail doing what we do, so while we think that’s a huge advantage for franchisees in fresh markets, we also knew that it’d be a little scary to take that initial leap.

Ultimately, we trusted our business plan. We knew our financials were strong, and we were confident that once franchisees opened stores in their home markets, they’d be itching to expand their territories. And in late 2022, that’s exactly what happened. In Q4, we quadrupled our

42 Franchising M aga Z in E Usa F r A nch I see I n Act I 0n: PayMore
M u L t I -un I t F r A nch I s I n G F e A ture

footprint and have 50 more stores in development. With deals in place to open stores in Georgia, New Jersey, Ohio, Florida, Kentucky, Delaware and Massachusetts, we’re set to be nationwide by the summer of 2023. Existing franchisees in Virginia and Arizona are already expanding their territories into other states.

In North Carolina, our franchisee Nick Facchiano has opened his second store and is on his way to his third. “I was able to completely fund store number 2 with profits from my first location,” he said in a recent interview with Fransmart. “It was kind of nice to see that one business gifted a second business to me too.”

Why restaurant Franchisees are Flocking

We had built a business model that appealed to retail franchisees, IT professionals, and tech geeks. What we didn’t expect, and what we’re thrilled to be seeing, is the number of restaurant franchisees looking for a simpler concept to own and operate. Our talented roster of franchisees is growing more and more full every month with people leaving the challenging landscape of restaurant franchising. Former franchisees of megabrands like Firehouse Subs and Domino’s Pizza are on our team now, and more than anything, the quality of life that PayMore can offer to franchisees speaks to them.

Our hours of operation are 10 am – 6 pm, Monday through Friday. We’re open limited hours on Saturday and closed on Sunday. That allows our franchisees, and our employees, important time with their families. They get to have family dinners, attend their kids’ sporting events, or take weekend getaways. PayMore’s business model allows for large portions of our business to be done online, which allows franchisees to generate major revenue while the stores are closed.

PayMore’s startup costs are low for the industry, giving our franchisees a quicker path to profitability and a quicker path to stores number 2 and number 3 and so on. Our low labor requirements (generally 3-5 employees per location) make hiring and keeping quality staff much simpler than busy restaurants. There’s no expensive

equipment, like hoods or vents, needed for our stores. No grease traps to clean. No supply chain nightmares.

The PayMore POS system is at the center of every store. It’s a proprietary system that allows franchisees and employees to quickly price incoming electronics based on data from other stores, chat with other stores in the network, and confirm specs of each device that comes through the doors. Think of it as the brain of your business –and it couldn’t be simpler to operate.

Take it from our Reston, VA franchisee Dan Lowe. He says, “I’ve been a multiunit restaurant franchisee and am now a PayMore franchisee. Anyone interested in franchising should look at PayMore. Lower opening costs, great numbers, easier to run, and the country is wide open. Restaurant franchising is getting tougher and tougher. PayMore is so much easier that I wouldn’t do restaurants ever again.”

our Franchising Future

We’re confident that we’re a business that’s built to last. As long as electronics keep evolving, our customers will bring us new inventory. It’s a supply chain that replenishes itself constantly. Customers love the immediacy of getting cash in hand. Couple that with the speed of innovation in the technology sector, and it’s easy to see why franchisees are finding PayMore so easily scalable.

2023 is poised to be a massive year for PayMore, with some major announcements coming in the near future. We expect to have close to 300 stores in development by the end of the year. Our goal is to be a household name in consumer electronics. And based on how quickly we’re growing, we’re well on our way.

Franchising M aga Z in E Usa 43

w hy i s m ulti- u nit f ranchising s uch an i mportant topic r ight n ow?

it’s not a new topic; multi-unit franchising has made news headlines across various business publications since the mid to late-1980’s, as the concept began to gain popularity among successful business owners and entrepreneurs, looking to expand their portfolios.

So, what’s new? The booming profitability in the service brands’ franchising world. Regardless of the saddening losses and drastic changes wrought by the COVID pandemic, franchising is thriving. Authority Brands, a parent company of several home service companies, has seen steady growth to its network of more than 1,100 franchise owners, with a total of more than 2,300 territories across the US and Canada. More than ever, locally-owned businesses whose teams can be trusted in people’s homes are in demand, giving those currently in this line of work or those looking to enter it, a chance to ‘doubledown’ and grow their footprint by purchasing multi-unit franchises.

how does multi-brand support tie into the concept of multi-unit franchising?

The growth opportunity doesn’t stop at a brand’s border. Several franchise owners currently operating a trade brands business (plumbing, electrical, HVAC, property damage restoration and screen repair and replacement service for homes and businesses) are considering the possibility of increasing their revenue by opening a brand within the same Authority Brands umbrella. Some individuals who have expressed interest in expanding are already multi-unit owners for a single brand. In fact, this month, an owner in Tennessee who currently runs a Benjamin Franklin Plumbing, Mister Sparky, and One Hour Heating & Air Conditioning businesses in her market is adding a new DRYmedic Restoration to her location. The natural ability to share leads—cutting down marketing costs and growing customer lifespans for businesses—is second to none. And that possibility expands across any of the Authority Brands companies. There are currently more than 460 multi-unit franchise owners, and more than 50 owners holding more than one brand. It’s a huge focus for Authority Brands Chief Growth Officer Heather McLeod.

e XPert ADvIce:
Megan Boyd
M u L t I -un I t F r A nch I s I n G F e A ture

Megan Boyd has led national marketing for four franchise brands, and national communications for 12 franchise brands over the past decade. Starting in 2007, she worked full-time in reporting, anchoring, and producing for television news, then moved to public relations, communications and advertising work for franchise, civic, corporate and public school district clients and employers. She’s beginning her eighth year on the franchisor side, supporting service brands. Megan earned a Master of Business Administration with a focus in marketing, and bachelor’s degree in broadcast journalism, with a minor in Spanish. She lives in Waco, Texas with

obvious as budget and P&L review, to selecting preferred customer relationship management (CRM) software and training programs for owners. As the number of locations under one owner increases, so do the logistics and details to be managed to ensure quality work that maintains a high profit margin. At DRYmedic, for example, the Operations team puts a heavy focus on using technology to improve project management, customer experience, and job profitability. But the priority they teach new owners, is ‘people first’ - building their team’s culture.

“Build your culture; we are all technicians first,” said Carlos Hasano, president of DRYmedic Restoration. “Being able to identify issues for your team and find solutions, allows you to effectively train the people coming in the door, show them the pathways to grow, encourage them, and reward them based on their performance.”

What are the biggest challenges we see with multiunit ownership?

finding more organic ways to cross sell and refer customers across their unique brands – and some of their best practices have become the standard across our brands.”

how are we uniquely supporting our existing multi-unit owners?

A sea of logistical questions emerges when one considers serving multiple franchised territories. They are present no matter if an existing franchise owner seeks to add additional units, or a new candidate enters a franchise system wishing to open multiple units.

• DBA Assignments

DBA assignment is often a gray area shared between the franchise development, brand operations, and marketing teams. With today’s everchanging Google algorithms, the challenge to be as widely geographically descriptive as possible for a Google Business Profile (GBP), while respecting available whitespace yet to be sold, is tricky to say the least. This process becomes even trickier when an owner is

as possible in advance. This includes the franchise owner’s DBA preference and the internet vendor’s recommendations before any assignment is made.

• Resource Accounts

More and more, franchisors are looking to online or cloud-based “toolboxes” to help owners customize marketing assets that are pre-approved for consistent branding across the franchise system. The benefits of having marketing options at your fingertips 24/7 are key for busy multi-unit owners. Being able to quickly get resources while juggling various territory-specific needs is a game-changer. Careful thought must be put into who will be managing these locations, and how these decisions can help simplify additions of more potential units in the future.

operational Logistics

From an operational standpoint, supporting multi-unit owners requires attention to detail and close partnership with brand Operations leadership, and Franchise Business Coaches (FBC), in areas as

Recruitment, staffing, and recruitment again. Business owners in many industries nationwide have been vocal about their experiences with the current U.S. staffing shortage. Competition for skilled labor is fierce, and as a location adds units, its staffing needs grow exponentially. Authority Brands has seen successful implementation of recruitment vendors integrated into multi-unit owner websites, making instant job search and application possible, across desktop or mobile platforms.

Keeping jobs flowing in the door to make payroll for the team can be scary for those thinking of adding units, especially with rumors of a looming recession. One thing to consider before investing in additional franchise units is, “Will this business be in-demand even in a fluctuating economy?

If consumers limit their spending, will this be the service they cut first?” As Mark Dawson, an executive vice president for Authority Brands told owners in November 2022 at their annual convention, “We refuse to participate in a recession.” Investing in essential services is a sound investment, and benefits are simply multiplied when adding multiple units.

also knew he didn’t want to reinvent the wheel to open his own business. Having seen the business process the brothers crafted for Beans, Scott needed no convincing: The deal was sealed. Today, Scott’s multiple locations have not only expanded Beans & Brews’ footprint in the marketplace, but it’s also become a family business. Scott’s brother, Erik, oversees operations, while Scott serves as CEO. It’s a model for growth he’d recommend to anyone considering investing in a multi-unit operation.

Rick and Angela Thomas turned to Beans & Brews as a retirement plan. They now own six locations, with one more opening this year in the Salt Lake area. Their Beans multi-unit ownership story began when Angela became a regular customer and saw the potential for franchising. She liked the vibe of the store so much, she convinced Rick, who wasn’t even a coffee drinker, to reach out to corporate and meet the Laramie brothers. They immediately felt comfortable and at home.

Giddy with excitement, the couple felt confident they’d get the help and support they needed from the Beans team and become part of growing the brand they loved. Support is a key component in successfully executing a multi-unit deal strategy. The training and support provided by Beans & Brews to their franchisees ensures that managing multiple locations doesn’t become overwhelming. Support also helps maintain consistency when it comes to brand identity and the quality of their coffee and other menu offerings.

Fifteen years into owning their Beans coffeehouses, the Thomas’s still haven’t retired and have found a way of life they love. They’ve also witnessed how, as the brand grows, the systems and processes

F r A nch I sor I n D e P th: Beans & Brews M u L t I -un I t F r A nch I s I n G F e A ture

“ Matt and Michele Sauk opened their first location in July 2017 in Utah. They purchased their second location from an existing Beans franchisee in 2019, and quickly opened two more locations.

“ Melanie discovered the brand when, as a single mom starting college, she needed a comfortable place to study while her son was at kindergarten.

franchising and knew if she opened multiple stores, she could make a good profit and help the brand expand.

Part of the Beans expansion strategy that attracted Melanie was how easy the business concept was to learn. She knew she could become an expert quickly with the training Beans offers franchisees. She also credits Beans’ leadership team for their phenomenal support.

Multi-unit franchisee Matt Sauk says Beans is a great local brand that people know; customers get excited when they hear a Beans & Brews Coffeehouse is opening in their community. As Beans & Brews continues its strategic expansion through multi-unit deals, it’s clear the brand smartly offers what it takes to attract qualified investors: a quality product popular with consumers, streamlined operations, training, support, and a beloved brand ready to grow into new territories.

Matt and Michele Sauk Melanie Jorgenson

D

ALYSSA Ch UMBLe Y

e MONS tRAte S th At SUCC e SS IS

NO t D epe ND e N t ON G e ND e R

in a business world that is typically male-dominated, alyssa Chumbley proves it doesn’t have to be. as an accomplished franchisee owner of Express Employment Professionals with locations in Valparaiso and schererville, indiana, alyssa has demonstrated that success is not dependent on gender.

As the leading global staffing provider franchise network , Express Employment Professionals is dedicated to providing dynamic workforce solutions that exceed expectations and provide hope to all clients, associates, and communities the franchise serves. The franchise is dedicated to diversity and inclusivity,

harboring a merit-based culture and exhibiting commitment to its core values of persistence, respect, empathy, integrity, honesty, focus, and efficiency.

Prior to becoming a successful business owner, Alyssa grew up in a small community in Northwest Indiana and attended Purdue University, where she majored in business management. After graduation, she landed a career in sales where she quickly climbed the ladder and discovered her passion for leadership. By the age of 22, Alyssa managed a team of 30 fully commissioned sales representatives. Her experience in this role taught her many valuable lessons, including the importance of stepping outside of her comfort zone and the ability to learn from her mistakes.

After six years in the corporate world, Alyssa took a leap of faith and purchased an Express Employment Professionals

franchise. Her parents had been Express franchise owners for over 20 years, and growing up, Alyssa had spent her summer breaks working at her parents’ offices. During her summers, Alyssa was responsible for answering phones, welcoming associates, and filing applications, but also learned lessons about the important service Express Employment Professionals provided.

As a second-generation business owner, Alyssa has always recognized the value of staffing and helping companies build their businesses while strengthening the community. Alyssa sees the staffing industry as a chance to serve others with love, support, and hope by guiding them on their journey to finding the right job. Although the staffing industry can be challenging, Alyssa was determined to build her franchise with her core values and client-service vision in mind.

“One of our core values is, ‘we develop leaders focused on a common goal.’ As my team’s leader, I need to continue to offer personal and professional growth within our organization so we can continue to grow bigger, faster and stronger. Taking on new brands, locations, and service lines within our franchise system will be the

48 Franchising M aga Z in E Usa wo M en I n F r A nch I s I n G: Alyssa Chumbley | Express Employment Professionals
M u L t I -un I t F r A nch I s I n G F e A ture

engine behind ensuring that my leaders are continuously fulfilled with growth opportunities,” says Alyssa.

Express Employment Professionals is different from other agencies because it is locally owned and operated yet has the backing of a large and healthy international headquarters which enables the local small businesses to work more efficiently at a larger scale without having to jeopardize the local community connection and impact. With that said, Express is really able to diversify its recruiting efforts, which is one of the many things that sets the company apart from its competitors. When recruiting, the company also encourages its franchisees to broaden their skillset and industry experience.

As a franchise owner, Alyssa most enjoys the flexibility the company’s business structure provides her. Franchising allows

Alyssa to run the business at a pace that fits her lifestyle while receiving continuous support from her franchisor. From the business perspective, she loves speaking with different decision-makers in the community while also making a difference by helping businesses accomplish their goals and having a direct impact on people’s lives through employment opportunities.

Through her impressive leadership skills and astounding dedication, Alyssa has made a significant impact in the staffing industry. Her passion and commitment to community building has allowed Alyssa to grow into an exceptional franchise owner and a valuable asset to the Express franchise. She believes that empowering her team members to become leaders is the key to her team’s success. Alyssa also emphasizes the importance of making tough decisions and having difficult conversations when necessary, as it is crucial to the productivity, culture, and growth of her business. She advises aspiring business leaders to develop a team of leaders rather than followers, empowering them to contribute to the development and success of the business.

Alyssa is a true leader that has proven with hard work, passion, and a focus on

personal and professional growth, anything is possible. As a franchise owner of Express Employment Professionals, she has shown that being an underdog doesn’t mean you can’t succeed. Her dedication to her team and her willingness to take on new challenges has allowed her business to expand and thrive. Her commitment to developing leadership within her organization is a testament to her own strong leadership skills. By creating an environment where her team can grow both personally and professionally, she is ensuring that her franchise continues to evolve and improve.

“Being a business owner has been life changing and fulfilling. My husband and I both hold demanding leadership positions in two different industries, while also raising a young family. To some, it may seem impossible, but I am grateful and humbled we’ve been blessed with the opportunity to have our cake and eat it too,”says Alyssa.

As Alyssa moves forward, it is clear that she will continue to be a successful franchise owner and leader. Her ability to adapt to new challenges and her dedication to her team will undoubtedly lead to continued growth and success. Her message to not underestimate the underdog and to have your cake and eat it too, is a valuable lesson for all aspiring entrepreneurs. Alyssa’s story is an inspiration, and we look forward to seeing what she will achieve next.

Franchising M aga Z in E Usa 49
“ One of our core values is, ‘we develop leaders focused on a common goal.”

attract l arge i nvestors to your f ranchise by learning h ow to b uild a g reat t eam

Franchising and competitive sport have a lot in common when it comes to building strong teams. as a former college football coach and previous multi-unit franchise owner, i can tell you from experience that there is a synergy that happens when the right people connect.

The benefit of that connection is realizing the team can achieve more together than everyone could achieve alone. In football, that cohesion leads to championships. In franchising, that partnership leads to unrestricted financial success.

Finding What Motivates each Party

When positioning your brand to be attractive to large investors, you are

essentially building a performance-driven team. When I work with creating good matches with franchisees and investors, a key element of the relationship is knowing each party’s motivations. You want to make sure the franchisee and the investor are both looking for the same end result: growing a business together.

If your investor is looking for a short-term investment, or if your franchisee plans to retire in three years, you likely don’t

e XPert ADvIce: Jim Boccher | Chief Development Officer | ServiceMaster Restore
M u L t I -un I t F r A nch I s I n G F e A ture

have a good match for this kind of growth opportunity. The franchisor, the franchisee, and the investor each bring critical skills and infrastructure to build this team and ensure its ultimate success.

being Prepared as the Franchisor

There is a mantra in coaching I often rely on in the franchising world: praise the action you want to see repeated. The franchisor has an important role to play in this investor-franchisee relationship beyond facilitating a partnership. If you are going to build investment opportunities to grow your brand, you need to create leaders who do the things that facilitate that growth. Acknowledge the work of franchisees who are doing the things you know are necessary to be successful.

Praise the action you want to see repeated and use it to grow your franchise. It works for single-unit operators and multi-unit, large investor enterprises.

recruiting the Investor

Investors have money. Matching an investor to a growth opportunity in franchising is rarely about financial capital.

Before your first conversation, expect that a large investor will have completed some research on your brand and how you market your franchise opportunity. Be prepared to expand on the support and sophisticated infrastructure you bring to the table for large investors. Make it easy for the investor to see that the franchise will be with them throughout their journey with the brand.

Get into the details about their goals for investment. What do they want out of this opportunity and by when do they want it? Find the intangibles they bring to the relationship such as their track record of past investments, and perhaps even with

other franchise brands. Having been a multi-unit franchisee, I always ask, “Is this someone I could see myself going into business with?” If so, I have the confidence to make the match with a franchisee. If not, perhaps more discussion is needed to build that confidence. Or maybe the goals are not aligned for a good fit with our brand. You want to introduce good people to your franchisees, and that means matching talented people and their individual personalities In creating these matches for the past decade, I can tell you there will be a level of excitement when you bring the right people together. If you’re not feeling that excitement, find the reason why.

becoming attractive to Large Investors

There are franchises available in nearly every industry, so the marketplace is competitive when attracting large investors. If you operate in a needs-based industry (i.e. restoration services, commercial cleaning, healthcare, etc.) you can leverage the recession-resistant value of your franchise. In our business, catastrophic weather events happen regardless of the economy and people always need restoration services. For us, the industry works in our favor.

That said, a franchise in a wants-based industry also has advantages. No matter the state of the economy, there will be certain wants that people will not sacrifice. When the economy is good, your wants-based business is prime for growth. If you can demonstrate how your brand maintains consistency, you can build a prime opportunity for a large investor.

For all brands, show your value to large investors with a deep bench of resources. Technology should be adaptive to managing changes and improving efficiencies. The brand should show

commitment to multi-unit ownership with a fully incentivized package. Your territories should be current and reflective of population shifts.

Selling your brand to a large investor is much like selling it to a single-unit franchisee: if someone is going to invest in your brand, they want to see themselves being successful with your offer. Franchises should always be honing that presentation to grow their brands, and with a little more sophistication in thinking, you can prepare a good foundation for large investors too.

recruiting the Franchisee

Franchisees have different motivations for getting into franchising and those motivations can change as they grow with your brand. The intellectual capital that makes a franchisee successful in the beginning will usually be their skillset as an efficient and effective operator and leadership capabilities that can build a team that contributes to the overall success of the franchise.

As franchisees become more experienced, their skills can be leveraged for further growth. Today, the majority of franchise operators in the U.S. are multi-unit owners, which reflects the maturity of the franchising industry as a higher-level investment opportunity. When these growth-driven franchisees are motivated to expand their enterprise but lack the capital to do it effectively, you have a potential match with a large investor.

Making the Match

In my experience, the franchisee who is primed for this opportunity does the best job they can every single day, whether they have an investment partner or not. That mindset sets the stage for growth when the franchisee and the investor are both committed to a long-term plan for success.

As the franchisor, you have the role of a football coach: build the opportunity to attract competitive individuals (franchisees and investors) who are focused on growing more as a team than they could individually. Make your matches based on motivations towards a common goal and do everything you can to ensure their success. That’s something to get excited about.

Franchising M aga Z in E Usa 51
Jim Boccher is the Chief Development Officer with ServiceMaster Restore. He has a history of recruiting, developing, and leading high-performing teams, from his coaching career in college football to his visionary roles in franchise development. Jim recognizes the potential that people bring to franchising and has a unique insight into developing those leadership skills that drive successful outcomes.

franchises post covid

Making multiple franchise locations— and multiple franchises—work

as a franchisor, we have long encouraged our franchise owners interested in expanding to employ a Hub-and-spokes model. little did we realize this same model would be a catalyst in surviving the pandemic and providing opportunities to thrive beyond Covid.

Prior to the pandemic, the Hub-and-Spokes business model was one of the bigger trends in franchising. Dunkin Donuts and Panera Bread were prime examples. What a lot of people don’t know is that the very first Hub-and-Spokes business started in the dry-cleaning industry. So, it stands to reason that tweaking that model during a trying time like the pandemic would start in the dry cleaning industry—at a time when dry cleaners saw a reduction in

revenue between 40 and 80 percent during the initial lockdown.

Before we get to the tweak, here’s a brief explanation of how the Hub-and-Spokes model has worked for our organization and our multi-unit owners.

The “Hub” features a state-of-the-art plant to accommodate pickup and delivery to five additional satellite stores. Those satellite stores can be opened for as little as $100k per unit. The typical Hub-and-Spokes enterprise for Lapels franchise owners incorporates a market of approximately 150,000 people, when fully built out. That translates to about six towns in a suburban market and several city blocks in an urban area.

The concept of the Hub-and-Spokes model is to put a system in place where you can operate the dry cleaning plant and manage the transportation of clothes to the satellite stores. In some instances, the franchise owner acts as the hands-on manager who

52 Franchising M aga Z in E Usa F r A nch I see I n Act I on: Michael Eisner | Lapels Dry Cleaning
M u L t I -un I t F r A nch I s I n G F e A ture

manages that. In other cases, an owner will hire a general manager to handle the dayto-day while he/she oversees the operation from a higher level.

Many of our new owners join our organization with the notion they will open a dry cleaning plant to start and then plan to open a satellite store within 90 days of the plant’s opening.

After the pandemic and the initial lockdown, we noticed a certain trend of many mom-and-pop dry cleaners getting out of the business. We began in earnest in steering our existing franchisees and prospects to purchase these dry cleaning plants/stores. These properties are desirable for several reasons:

• Built-in clientele from day one.

• Customers already used to bringing their dry cleaning at that location.

• Minor upgrades to convert and open

Converting an existing plant/store or Hub also makes it easier for prospects to scout out satellite locations. And while most satellite locations require a live human to staff the store, technology is making it possible to have satellite locations without full-time staff.

For example, Chris Cooley, multi-unit owner of Lapels Cleaners of Nashville, will soon install kiosks at two of his locations— Brentwood and Bellevue. These kiosks,

located within a vestibule inside the store, will provide customers with 24/7 access to pick-up and drop off items without a staff member present.

With technologies like the kiosks and lockers, it’s conceivable that every franchise owner could start out with two or more stores. That puts franchise owners in the multi-franchise mindset from day one. That means developing a system of management for multiple locations. Doing this at the beginning of their ownership gives them an advantage over another owner who enters our system with just one location.

Chris Cooley will also soon install a Metalprogetti automated assembly / bagging system. The Metalprogetti Gullieta looks very much like a futuristic device, featuring an assembly conveyor and carrying extension arms to transport complete orders to the auto bagger. At the auto bagger, a sticker invoice is applied to the right corner of the package. With the current labor shortage, this will enable his plant to process clean items at a faster pace.

When you have a system in place where you can run multiple locations efficiently, you can start to see how dry cleaning owners can enjoy a high level of success. The wheel starts with a Hub and maybe a Spoke or two and then continues to add more. If you have ever ridden a bicycle, you know the more spokes to the wheel, the smoother and faster the ride.

While the discussion here has been for dry cleaning, the Hub-and-Spokes model can work for a number of businesses and franchises.

Another reason for the success of this model for dry cleaning owners is how nicely the industry lends itself to complementary franchises. In other words, two different franchise types that can be run simultaneously because there’s some overlap in efforts. Several of our current and past franchisees owned and operated multiple dry cleaning locations as well as multiple locations of other franchises. In some of those cases, the types of franchise complemented each other.

For example, the owner of a restaurant franchise might be interested in owning a dry cleaning franchise. The dry cleaning

franchise could provide laundry service for linens and employee uniforms. Similarly, the owner of a chain of hotels might also have an interest in a dry cleaning franchise to provide dry cleaning services to guests and staff.

Owning multiple franchise locations is not for the faint of heart. You must possess a certain number of skills and character traits. You must know how to hire good people, specifically managers, develop them and keep them incentivized to want to successfully run and grow your business. Another part of that is having your manager be able to hire and groom potential managers.

Being tech savvy and able to use and understand reporting applications certainly helps. You should be a multi-tasker but also have the ability to compartmentalize and focus on the specific task at hand. You can jump in and help on the day-to-day, but the big picture should be part of your every activity.

Michael Eisner is the vice president of franchise development for Lapels Cleaners. To learn more about franchise opportunities with Lapels Dry Cleaning, call 781-829-8780 or email sales@lapelsdrycleaning.com. Additional information and up-to-date company news can also be found on the company’s Web site, https://lapelsfranchise.com/.

Franchising M aga Z in E Usa 53
“ The typical Hub-and-Spokes enterprise for Lapels franchise owners incorporates a market of approximately 150,000 people, when fully built out.”
Michael Eisner
Todd and Christine Huston, owners of Lapels Cleaners of Indian, which opened at 6257 Carolina Commons Drive, Indian Land, South Carolina

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.