FranchisingFeature Trending franchises
o ct o b e r 202 0
FOUR UNSTOPPABLE FRANCHISE TRENDS DEFYING THE PANDEMIC
Pandemic Shifts Interest to Service-Based Franchises
5 Trends
Rocking the Franchising World
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what’s new!
HUEY MAGOO’S CHICKEN TENDERS OPEN NEW FRANCHISES ACROSS SOUTHEAST restaurant locations, Huey Magoo’s has implemented numerous health, safety and sanitization protocols. “In these challenging times, we feel incredibly fortunate that Huey Magoo’s is in fact thriving with positive comp store sales, 120 franchises sold, more leases signed and restaurant openings set,” said President and CEO Andy Howard.
Huey Magoo’s restaurant brand announced it will proudly be serving even more families and neighborhoods across the Southeast with new franchises coming to Tennessee, South Carolina, Georgia, Florida and Mississippi. Huey Magoo’s expansion comes on the heels of the brand safely reopening doors for dine-in service at select restaurants in accordance with local and state guidelines. To ensure all guests’ comfort and confidence in enjoying a tasty meal in each of the
“This is a true testament to the phenomenal brand, our amazing high-quality product, ease of operations and excellent team of operators. As we further grow our footprint across the Southeast, our promise to everyone is that we will do everything we can to keep your family and ours safe and healthy while enjoying America’s best chicken tenders. We look ahead with much anticipation and excitement for Huey Magoo’s continued expansion.” Huey Magoo’s offers dine-in/out, take out, delivery through third-party delivery services, drive-thru and curbside pickup at participating restaurants. www.hueymagoos.com
THE DRIPBAR GAINS INTEREST AS WELLNESS MORE IMPORTANT THAN EVER Staying healthy is more important than ever, so it is no surprise that the small but growing IV therapy category is becoming increasingly appealing to prospective franchisees. Founded in 2016 and franchising since September last year, THE DRIPBaR is focused on helping people obtain their best health using advances in intravenous therapies. The Rhode Island-based franchise has seen interest in its franchise opportunity grow exponentially. With one location currently open and operating in Warwick, Rhode Island, THE DRIPBaR already has nearly 200 additional locations in various stages of development across eight states. According to Chief Development Officer Ben Crosbie, THE DRIPBaR is slated to open as many as 10 new locations by the
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end of the year, with an additional 40-50 in 2021. “Intravenous treatments are a durable change in the healthcare landscape that will only grow in the future,” said Crosbie. “THE DRIPBaR will be the leading brand in that space to capture this demand.” IV Therapy is the administration of nutrients and hydration directly into the bloodstream, the fastest way to deliver nutrients throughout the body. THE DRIPBaR leverages this benefit and provides IV therapies that are designed to do everything from slowing the signs of aging to energizing and refreshing. “COVID-19 has created a new understanding in people that they need to be as healthy as they can be. Healthcare is no longer a passive activity, where people wait for an illness to strike and then react
to it. More than ever people want to be in control of their own health, they want to be proactive,” said Crosbie. www.thedripbar.com/own-a-dripbar
TITLE BOXING CLUB TOUTS TOUCHLESS WORKOUTS
ALPHAGRAPHICS CELEBRATED TOP FRANCHISES DURING 50TH ANNIVERSARY EVENT
Alphagraphics, a leading franchisor of printing and marketing solutions, honored its top franchise owners and rising stars at the company’s recent annual conference. The boutique fitness industry needed to adapt to survive and support its members during the COVID-19 pandemic. TITLE Boxing Club has been meeting its members where they feel most comfortable by offering virtual or social media streamed fitness classes or in-person classes with a focus on a no-touch experience. TITLE On Demand is for members who are still only comfortable working out at home. In markets where state or local governance has prohibited opening, franchisees have a full slate of classes on Zoom or can attend rooftop, park or parking lot classes. Members that are comfortable attending the fitness clubs in person are welcomed with open doors in a clean, socially distanced environment. Some of the steps TITLE Boxing Club and its franchisees have taken to ensure a touchless experience include: • doors staying open or held open by a staff member to greet the guest • a touchless check-in process • sanitized pens for states that require members to fill out a questionnaire • boxing bags stationed six feet apart • advising members to bring their own mats for core workouts • advising members to wrap their own hands and use their own hand wraps and gloves
Due to the ongoing COVID-19 pandemic, the five-day event was held virtually, with center owners connecting safely from around the globe while celebrating AlphaGraphics’ 50th anniversary. “This has been a difficult year on many levels, but the AlphaGraphics brand has persevered and grown stronger,” said Bill McPherson, vice president of franchise development. “Shifting to a virtual conference is just one of the many ways we’ve offered innovative solutions to our center owners and staff members in 2020. We were grateful to have the opportunity to celebrate the dedication and hard work of those in the AlphaGraphics network.” Award-winning franchisees included:
• Rising Star: Jeff Bailey (Las Vegas, Nevada) A 20-year veteran of the print industry, Bailey was chosen for his consultative approach, high-tech investments and strategic partnerships with local leaders and vendors.
• Project of the Year: Gregg McDonough (Salt Lake City, Utah McDonough was recognized for a successful $75,000 contract with Tour of Utah, producing everything from large advertising banners to coloring books. He also landed a repeat contract for the next race.
• Best Customer Marketing Campaign: Bill and Clare Meehan and Sarah Meehan Parker (Pittsburgh, Pennsylvania) The trio was recognized for creating thoughtful and impactful marketing materials for Shenango on the Green, a family of senior living and service options.
• nightly or weekly disinfections for some clubs.
AlphaGraphics has more than 285 locations in six countries. The brand recognizes standout franchise owners each year at its international conference where business owners gather as peers.
www.titleboxing.com
www.alphagraphics.com
• 30-minute enhanced cleaning time in between classes
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FLEET FEET USES INNOVATIVE TECHNOLOGY TO PERSONALIZE FOOTWEAR The brand’s in-store outfitting experience, fit id®, uses pressure mapping software to offer individualized footwear solutions for customers that are personalized from biometric data captured in store and account for differences between the left and right foot.
Fleet Feet, a national franchisor of locally owned and operated running stores with 181 locations across 37 states, is embracing new technologies to improve and personalize their customer experience.
The launch marks a significant milestone of a collaborative initiative between Fleet Feet and Volumental, the footwear technology company behind Fleet Feet’s in-store 3D foot scanner; Superfeet®, the premium insole brand; and Superfeet’s partnership with HP, which provides an end-to-end solution for data scanning and personalized insole production. “Our partnerships with both Superfeet and Volumental have allowed us to provide the best customer-centric experiences, products and footwear solutions, and today marks
another huge step forward in continuing to do so,” said Joey Pointer, CEO and president of Fleet Feet. The dynamic pressure mapping platform measures unique foot path and weight distribution of each foot as an individual walks across a three-and-a-half-foot long force plate. Within seconds, Fleet Feet outfitters can capture and share that data with the customer. Dynamic pressure mapping launches in phases at Fleet Feet locations across the country beginning this month. In addition to insoles, Fleet Feet will offer Superfeet ME3D custom Aftersport recovery slides utilizing the same data and process as the insoles. Customers will have the ability to order slides through Fleet Feet later this year. www.fleetfeet.com
KONA POKÉ EXPRESS COMING TO ORLANDO WINERY Central Florida is about to get fresher as the popular, fastcasual, healthy food concept Kona Poké announces its first Express location coming soon to Orlando. Opening in late 2020, the Kona Poké Express location will operate at Quantum Leap Winery, where customers can enjoy a wide array of wine selection while eating their Kona Poké, with indoor and outdoor seating to choose from. The menu will contain all top-selling items from Kona Poké’s brick and mortar locations, like Kona Poké’s delicious Signature Bowls and Build Your Own Bowls made with fresh sushi-grade fish, house sauces and over 40 fresh toppings to choose from, plus vegan, vegetarian, keto, gluten-free, cooked options and more.
our first Kona Poké Express location in Orlando and teaming up with Quantum Leap Winery is the perfect pairing,” said Kona Poké Owners Matthew Ting and Ernie Falco III.
Kona Poké Express consists of a shared location, food trailer or food hall configuration of the traditional Kona Poké brick and mortar location, and has a 100 percent no-contact food prep guarantee.
“Our Kona Poké Express concept allows us to feed even more customers our phenomenal, fresh and delicious food fast and with ease, which is essential in today’s complex climate. We look forward to continuing to secure many more Express locations throughout Florida in the future.”
“We are very excited and grateful to continue expanding and open
www.konapokebowls.com
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P.POLE PIZZA UNVEILS PLANS TO FRANCHISE ACROSS THE U.S. While many restaurants have struggled to adapt to the changing business landscape due to COVID-19, P.Pole Pizza is flourishing. With a brand geared toward millennials and Generation Z, the brand has announced the launch of a national expansion initiative, with the first franchise location to open in South Florida by January 2021. Plantation businessman Anthony DiCarlo purchased the exclusive rights to franchise P.Pole (pronounced people) in Broward County, where he expects to open 10 locations, the first in Hallandale Beach. “This concept is virus proof. P.Pole offers good food, fast service, low prices and efficient management,” DiCarlo said. ”Even during the darkest hours of the community lockdown, P.Pole thrived.” While the ribbon has yet to be cut on the Hallandale location, DiCarlo has entered
into an agreement to purchase the exclusive rights to Palm Beach County, projecting to open between five to eight P.Pole Pizzas. Lower real estate costs and growing retail vacancies make for a winning combination for an entrepreneur looking for a good business opportunity. “I’m finding great locations with landlords willing to make good deals. The time is now!” said DiCarlo, an experienced restaurateur. P.Pole Pizza opened in 2018 focusing on feeding the millennial outlook on life. The pizzeria is known for its skateboardshaped, 13-inch, thin-crust artisanal pies and low prices. The open kitchen gives customers a clear view into the process of making pizzas from scratch. Carniato says P.Pole Pizza’s appeal prompted him to plan for additional corporate locations, Miami Beach and
Brickell. Both locations are in the planning process and opening dates have yet to be set. www.ppolepizza.com/franchise
INXPRESS FRANCHISEE EARNS ROCK STAR RECOGNITION FROM FRANCHISE BUSINESS REVIEW Tom Morris of InXpress, the global business-to-business shipping and logistics franchise, was recognized by Franchise Business Review as a “2020 Franchisee Rock Star” from 28,000 franchisees across 300 brands in the “Top Performer” category. Morris joined InXpress more than 10 years ago and has since proven to be a top performing franchisee throughout the global franchise network. The award is a great addition to all the other achievements Morris has collected over the years, including the 2013 Franchisee of the Year Award from the International Franchise Association and InXpress’ 2019 Top Gun Award. His results-driven mindset, exceptional customer service and “all-in approach” allowed his franchise to reach $1 million revenue in 2018.
“Tom serves as a prime example of what it means to be a top performer. He goes above and beyond with his franchise, always offering top-tier service and
one-on-one support to his customers,”
said Dustin Hansen, CEO of InXpress
Americas. “He is also an inspiring mentor to many of the franchisees at InXpress.
He embodies our core values and has been instrumental in creating a collaborative
company culture where every franchisee, new or established, feels supported.” Morris was also recognized for his dedication to community. Recent
philanthropical works include raising
$31,000 for a charity golf tournament,
food bank donations and hosting annual
fundraisers for local hospital staff workers. www.inxpressfranchise.com
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G i n a G i l l | Fr a n c h i s i n g U S A
FOUR UNSTOPPABLE FRANCHISE TRENDS DEFYING THE PANDEMIC Franchising USA
The pandemic has changed a lot of the familiar things that we have all known and loved for so long. While the world has adjusted and everyone is finding space in the “new normal,� franchises have also accommodated to the new needs of the economy.
“Successful franchises will seek opportunities for their business to rise from whatever circumstances they are being handed and find ways to flourish.” commitment to a bricks-and-mortar location.
During the pandemic, investments are being held for businesses that can survive a potential lock down. We find ourselves asking: How have these franchises dealt with the sudden stop of income? What did they do to adjust to changing regulations and new government protocols? It’s important to review and consider all the adjustments these successful franchises made during lockdown to learn how a business can thrive even when the world is silent. For example, many businesses have found that having robust telecommunications systems in place has helped them stay connected with their team and their customers. Businesses are adjusting to more virtual interactions, and a franchise that has this technological support in place can benefit.
As the American economy needs to constantly adapt to new trends and outside factors, franchises also need to be ready to adapt to changing times and trends. And successful franchises will seek opportunities for their business to rise from whatever circumstances they are being handed and find ways to flourish. Trending amongst investors, even amidst the pandemic, are the following franchise businesses:
Food trucks Comfort food has never been more in demand and fast-food franchises continue to be successful and widely popular amongst franchisees. But food franchises used to be massive investments, with a large upfront cost and a locked-in
But as people’s needs and tastes have changed—for example, people now want fast-food providers to offer more variety and healthier food options—smaller food businesses are starting to thrive. A popular choice of franchise now is the food truck. With a small location and a much smaller start-up cost, this mobile franchise can be set up (almost) anywhere, the location fees are low, and the service is extremely popular right now.
Green businesses With climate change an increasingly important issue for many Americans, any franchise invested in green processes or products that help reduce our carbon footprint continue to rise in popularity. Interest in climate-friendly consumer options has been on an upwards trajectory lately and many millennials (who have great buying power) are dedicated to the movement. There are franchises specializing in the zero-waste, with products that recycle and reduce waste like long-term, repeat-use toiletries and cleaning products. While other franchises create large-scale climatefriendly products like solar panels and windmills. The benefit of a green franchise is that it can generate great profit with lower investment. People are willing to pay a higher ticket price tag to help save the environment, but it doesn’t cost a lot to produce. Meanwhile, businesses dedicated to green processes save money in the long term. Look into how franchises are profiting from the movement and how their products stand up to the test of time. If climate change is an important and personal issue for you, it’s worth researching how exactly the franchise is protecting the environment.
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G i n a G i l l | Fr a n c h i s i n g U S A
“The economy’s needs are ever developing and adjusting to consumer’s needs, so take a look at franchises that have been thriving during lockdown and how they created innovative ways to respond.”
and the importance of fitness than ever before and are ready and willing to invest.
Senior care There are currently over 80 million Americans over the age of 65—which means senior care needs are on the rise. There are numerous options when it comes to senior care franchises depending on the level of responsibility one wants to take on or the size of the location. A large retirement home can house many aged care residents, while there are many smaller medical facilities with clients not on site. The large variety of choices and protocols of senior care demands a lot of research prior to investment. Working with a franchise can help ensure all regulations are covered while the investor remains protected. If you’re interested in working in the aged care sector, there are many different
avenues to contribute with a franchise. A popular franchise that relates to senior care is at-home medical care. With multiple appointments and needs to be addressed, leaving the comforts of one’s home can be a huge inconvenience. In 2009, the National Association for Home Care and Hospice reported the annual spending on home health care was $72 billion, meaning there is a lot of room for profit. A mobile senior care business has a lower start-up fee and allows greater flexibility in worklife balance.
Fitness The health and fitness franchising industry is continuously trending upwards. It’s a $3.7 trillion global industry with expectations to grow 20 percent this year. Americans are more aware of their health
Though they come with a larger price tag, gyms are the easiest franchise to set up and gain profit. Take a moment to chat with other gym franchisees to see which set up best suits your needs. Some smaller gyms provide specialized training services and focus on customer service, while others are giant locations that focus on increased membership. Both come with a set of pros and cons, depending on your personal goals. When it comes to trending franchises, it’s important to consider whether or not a trend is just that: a short-term fad. Consider if the profit is worth the risk and if the trend has upward potential to grow in the positive. The pandemic has opened new doors for franchises and exposed how quickly a wellestablished business can respond rapidly to unexpected change. The economy’s needs are ever developing and adjusting to consumer’s needs, so take a look at franchises that have been thriving during lockdown and how they created innovative ways to respond. ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.
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Expert Advice: Sarah Kulbatski | COO | JT Franchising
trends
Rocking the Franchising World
In its earlier years, franchising was a place for single unit owners who were happy to be their “own boss”, “buy a job” and provide a modest income for themselves and their families.
corporate leadership role, ensuring their company delivered on its promise to its customers, behaved in a responsible way and earned profits. They also played the franchisor role, which required them to coordinate the ambitions of their franchisees.
Franchisors faced significant and unique challenges. They fulfilled the traditional
We are three months away from the end of an unprecedented 2020, and so far it has
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These days, social and economic changes mean the best franchise systems must be adaptable in the way they do business. As franchise systems grow and develop, changes are needed to maintain support to franchisees.
been a turbulent year for everyone—and the franchising industry is no different. We have seen many businesses lose traction, but we have also seen new innovation, with many franchises facing pandemic challenges with innovation. So, what are the latest trends rocking the world of franchising?
1
multi-unit operators
More than half of all franchise units in the United States are run by multi-unit operators, some with hundreds of units and revenues in the tens of millions. These operators don’t work in their stores
“Mobile pay and apps are the strongest customer-facing technology being deployed, with increasing uptake by consumers. Incorporating Apple or Android pay is also an emerging trend.�
Sarah Kulbatski
are not for a struggling brand to become relevant; they are for brands that have a product that was in high demand who are now looking to expand that product availability. The future, however, is definitely moving towards the preference of ghost kitchens. or travel from home to home to provide services. Rather, they manage their company, employing a professional staff of field and unit managers, while they focus on strategy and growth.
2
Multi-brand franchisees
Those with two or more brands are also a rising trend. These franchisees have often maxed out their territory with their first brand and must now take on a second or third brand to continue to grow their organization. Others are seeking additional brands to provide cash flow for different day parts, or to diversify their risk, by creating a hedge against market cycles, changing consumer tastes, and shifts in the economy.
3
Delivery Platforms
More and more franchises are eyeing various delivery platforms, as a means for expansion and increasing sales at store level. Franchises, in order to gain a competitive edge, are embracing new technology as a means of operating responsively and quickly to their customers. Mobile pay and apps are
the strongest customer-facing technology being deployed, with increasing uptake by consumers. Incorporating Apple or Android pay is also an emerging trend. Franchises are investing in their online profiles, with the ability to access resources and materials 24/7. As a result, this investment enhances the experience of their customers and increases brand awareness.
4
Ghost kitchens
Many restaurants are starting to see the benefits of ghost kitchens (a coworking, professional food preparation and cooking facility, set up for the preparation of delivery-only meals), especially during the pandemic, as they are an easier and cost-effective way to reopen and/ or cut costs in these uncertain times. This growing trend contains the kitchen equipment and facilities needed for the preparation of restaurant meals, but has no dining area for walk-in customers. These kitchens pump out orders amid an increasing demand for delivery due to the COVID-19 outbreak, with many restaurants still closed or operating at reduced capacity and consumers cautious of lingering near others. The ghost kitchens
5
automation
The key to sustained economic growth is not just finding workers, but also transforming how they work through automation. The pandemic is accelerating a shift toward digitalization to reduce the spread of the virus, while enabling more people and processes to move online. That task has become a more urgent priority as the COVID-19 pandemic has forced an unprecedented drop in economic activity. The pandemic is propelling a new wave of automation, with endless possibilities of food offerings being served by automated technology. Retail automation allows you to reduce labor costs—more automation means fewer tasks done by hand and a lesser need for the human capital to perform those tasks. By virtue of having spent most of her professional career in the franchising sector, Sarah Kulbatski, COO, has a passion for business, is driven to achieve short- and long-term results, and is committed to quality and sustainability. She believes that a climate of positive franchise relations lies at the heart of a successful and thriving organization. Email sarah@jtfranchising.com Visit www.jtfranchising.com
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Have Your Say: Roger Martin | Co-founder and CCO | RockBox Fitness
Fitness Franchising in the COVID-19 Era
Franchising USA
COVID-19 has changed the fitness industry forever. When the pandemic first set in, there were a lot of unknowns. How were we going to keep our members, employees, and franchisees safe? How were we going to keep moving the needle for our franchisees and members? What process would we have to develop for discovery days? Leaders of fitness franchises had to be flexible, think quickly, and adapt to the circumstances, or their concepts wouldn’t survive. COVID-19 pushed fitness franchises to transform the way we communicate the importance of health and fitness to our members. We had to develop ways to keep members motivated without them being physically in our studios or locations. Though most fitness concepts have had to limit capacity and structure, this doesn’t mean fitness concepts aren’t able to provide their members and the greater community with access to high-energy and motivational workout classes. At RockBox Fitness, we pivoted quickly and developed RockBox Remote—an online portal that provided our members with access to diet plans, body weight workouts, as well as the opportunity to view live workouts put on by our trainers. The portal also allowed our members to meet one-on-one with our trainers so they could discuss their goals and progress on their fitness plans. The switch to virtual fitness is key not only right now as many gym concepts across the country remain closed or operating with limited capacity, but also for the future. COVID-19 has changed the consumer mindset, and even once gyms are given the “all clear” to fully reopen, there will be members who are tentative to return to a gym full of people. The virtual fitness offerings are here to stay, and this should
absolutely be something that brands continue to innovate and adapt to better suit the needs of their members.
promotion many concepts offer to new
The ability for fitness franchises to pivot to the virtual fitness space will be an integral part of a brand’s success as they move forward. The industry landscape continues to change very rapidly, and those that are willing and motivated to further develop their concept to keep up with the changing times will find success.
programs and live social media
One way to optimize your franchise’s performance during these times is to make sure that all departments, from operations, to marketing, to franchise development, are all working towards the same goals. Providing your team with these goals and giving them the necessary resources, whether that be new technology or new services, will help your brand be better equipped to work towards those goals as one cohesive unit.
members.
In addition to providing more virtual workouts, brands should also focus
on adapting their private training and semi-private training sessions. This will provide an option to those who
aren’t comfortable returning to a packed gym, but still want an option for an
in-person workout experience. This will also continue to show your concept’s
ability to adapt and innovate to potential franchisees and will exhibit your ability to grasp the current landscape and deliver solutions for members.
Health and wellness will always be a
necessary resource for our communities, and given the current circumstances, not only is there demand for fitness concepts, there is a need for them.
Franchisors and franchisees alike must
“Though most fitness concepts have had to limit capacity and structure, this doesn’t mean fitness concepts aren’t able to provide their members and the greater community with access to high-energy and motivational workout classes.”
be willing to put in the work and invest their time and resources into helping
others. Franchisors must constantly be
looking for ways to adapt and innovate
their concepts to better serve franchisees and their members. Provide your teams with goals to strive for and give them
the means to achieve those goals while offering guidance and advice.
The future of the fitness franchise industry remains unclear due to the constantly changing guidelines and mandates, but it is hard to imagine any operations moving forward without brands further developing and expanding their offerings. In addition to virtual workout programs and portals, brands should also focus on making live workouts available through social media channels. This is a great way to not only continue to deliver value to your members, but also to market your brand and increase your following with hundreds, if not thousands of new potential members. After all, what better way for someone to experience your brand than to actually do a workout and see how your concept operates? Think of the live social media workout as the new “free workout”
These last several months have no doubt proven to be challenging for the fitness industry, but if your brand is able to
keep pushing harder than ever before,
your members will see that and will be grateful for your services.
Roger is the co-founder and Chief Commercial Officer of the industryleading group fitness studio, RockBox Fitness. This concept changes lives, and he believes that changing lives is the best feeling in the world. Prior to co-founding RockBox Fitness, Roger worked in the pharmaceutical industry and most recently served as President for a leading contract manufacturer organization. www.rockboxfitness.com
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Expert Advice: Rick Bisio | Franchise Coach | FranChoice
Pandemic Shifts Interest to ServiceBased Franchises
“According to Franchise Insights, home services surpassed food and restaurant franchises to rank as the most popular category for aspiring franchisees in Q2 of 2020.�
Rick Bisio
In the past when I have written about trending franchises, I have focused on popular industries that had seen growth in consumer interest and owned a sustainable business model. As with nearly everything in 2020, the COVID-19 pandemic has changed the conversation and created an entirely new perspective on this topic. Over the last several years, there had
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been a high demand for franchises that operated from a storefront location. When the coronavirus hit earlier this year and drastically impacted the economy, the effects were also felt throughout the business landscape from franchise candidates. The biggest trend that I have seen in franchising this year has been the shift towards service-based businesses. Examples include plumbing or air conditioning repair, window washing or maid services. These are franchises that work out of homes or small offices and may eventually evolve into larger offices or warehouse spaces.
Home Services According to Franchise Insights, home services surpassed food and restaurant
franchises to rank as the most popular category for aspiring franchisees in Q2 of 2020. These types of franchises, which include categories such as home improvement, painting and pest control services, claimed the top spot with 21.1 percent of franchise inquiries in Q2 and a 31.2 percent increase in share from Q1. In the same set of rankings, cleaning and maintenance franchises saw the second most inquires (13.3 percent). It increased 32.5 percent from Q1 to Q2, as many people likely saw the growing demand for those services due to the pandemic. This trend is very similar to what we saw a little more than a decade ago. In the years prior to the Great Recession, there was a tremendous interest in investing in multiunit storefront type businesses. Everyone took a step back when the Recession hit in
“The biggest trend that I have seen in franchising this year has been the shift towards service-based businesses. Examples include plumbing or air conditioning repair, window washing or maid services. These are franchises that work out of homes or small offices.”
SBA Loans
2008 and started moving toward servicebased businesses that did not require a lease. For those businesses with a lease, it was often for an office and not a retail establishment. This sentiment was primarily driven by fear and uncertainty. People decided to get into a business in which they had less exposure to an expensive lease and required a smaller investment. That trend continued for about three or four years before the economy slowly improved and people started getting back to owning storefront businesses. Ironically, that period of time presented a great opportunity to acquire a storefront location because leases were cheaper, landlords were looking for people to rent their space and there was less demand for real estate. That is something that I have seen again this year as some people are receiving lower costs for spaces for storefront businesses. They have been able to lock in a preferential rate right now and keep that for the next 5-10 years. Although the present situation and the past Recession made it a buyer’s market with some good opportunities for storefront locations, fear of the unknown pushed people to home or service-based businesses.
Service-based franchise systems One benefit to this current trend is
that over the last decade, I have seen a tremendous improvement in the quality and sophistication of service-based franchise systems. This includes features such as call centers, customer feedback loops, job efficiency ratios and web optimization, pay-per-click, scheduling, employee tracking, and CRM systems. It serves as a cradle-to-grave infrastructural backbone system and provides a tremendous advantage for the franchisee. These systems are very impressive but are incredibly expensive, complicated and difficult to create. However, once they have been built, they are highly replicable and beneficial for the entire franchise system. Franchisors have a business operating system that delivers a competitive advantage over others in the marketplace. These systems give franchisees such a systemic edge that, quite frankly, ‘momand-pop’ stores have a very hard time competing. A lot of service-based franchises today are part of larger systems where there may be a system with several different brands. One example is Home Franchise Concepts, which has individual franchises specializing in blind installation, indoor air quality, home storage solutions, and concrete furnishing all under its umbrella. These sophisticated operating systems allow the franchisee to predictably build a business and do it for a relatively modest cost in comparison to a storefront location.
One additional change I have seen relating to franchising this year is stricter credit requirements for SBA loans. SBA financing was relatively easy last year, but the criteria and evaluation process that banks now go through before they issue an SBA loan is tighter in 2020. They now require more working capital than had been necessary in the past. The good news is that SBA loans are still available and the process of getting one has not changed. People go through a pre-screening process with the bank and with the organization to determine if they qualify for an SBA loan. The majority of cases can get approved and move forward. Those who do not qualify will find that out early in the process, so there won’t be any surprises at the end. Like many other trends, it is difficult to predict a timeframe for how long these changes in franchising will last. Some people are interested in servicebased franchises based on the current pandemic while others are drawn to the lower overhead costs and benefits of their comprehensive operating systems. Regardless, there are many attractive franchise opportunities in 2020 despite the current economic climate. Rick Bisio is one of the countries most respected franchise coaches and author of the Amazon best seller, The Educated Franchise - 3rd Edition. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. www.afranchisecoach.com/the-coach
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Expert Advice: Gary Norris | CEO and Founder | Norris Ventures
4 Restaurant Franchising Trends That Are Winning
“Please stand 6 feet apart.” “We are seating every other booth and table.” “We will help you with beverages and condiments.” “No more 20 persons allowed to dine in at a time.” “A mask is required for entry.” Sound familiar? Most of us have seen this when resuming going out to eat with our families, friends, and co-workers. In the last few months, I have written about how your restaurant can survive during this time, about how to secure market share, how to grow during a downturn, and even trends that are emerging for franchised restaurants. I have been coast to coast speaking with entrepreneurs and franchisors about what they are doing (or not doing) to survive in this current climate.
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Now I will share a few restaurant trends that are emerging that I believe are super compatible with franchise opportunities. I want to highlight some of these trends to help you in your search for your next restaurant franchise opportunity.
Trend #1: Full service - Fast Casual Recently while dining with my family at a well-known chain, we noticed how the service had changed from self-service to full-service. Our drinks were prepared for us at a station in front of the soda fountain machine where we would normally have made our own beverages. A table was purposefully placed in front and a friendly staff member, masked and gloved, politely asked us what we would like to drink. It didn’t feel forced or temporary. It felt relevant and proactive. The trend we are seeing is this: environments that are seamlessly
transitioning from self-service to fullservice are the franchises that are winning right now. When seeking your next franchise opportunity, seek the ones who are seamlessly transitioning into full-service from self-service in a way that feels evolutionary and not revolutionary. In other words, transitioning in a way that is next-level, not just fighting against the pandemic. This provides a safe and secure experience for guests and lets them know the restaurant is on top of their game.
Trend #2: Socially Distanced Dining Rooms and Patios Another trend is the swift preparing of dining room environments to accommodate social distancing indoors and outdoors. Some of the restaurants I have visited felt awkward and out of place. Caution
Gary Norris
tape draped across every other booth and computer paper marked, “DO NOT USE THIS TABLE” Sharpie-signs. This is what I would label as revolutionary, as I mentioned above; just reacting to the pandemic in a make-shift sort of way. On the other hand, during this season of precautionary measures and distance, some have truly evolved, making diners feel just as at home with these new arrangements as before they existed. Every other booth has become a serving station and tables have been removed to make the dining experience more welcoming. And patios. Remember those? Now restaurants with ample outdoor seating are booking reservations and seating guests at every service. Seek restaurant franchise opportunities where dining experiences have been adapted to accommodate social distancing and that have included a healthy dose of outdoor dining into their location plans.
Trend #3: Online Table/Booth Reservations I have said this before and I will keep saying it (even for those who have limited seating already): online reservations for a table or booth is critical. It doesn’t need to be mandatory, but it goes a long way to helping guests recognize that the location is making every effort. Restaurants that give us the opportunity to reserve a table outside for our family at
supper time will prevent us from getting there only to find out the patio is full and the inside has reached capacity. The restaurant franchises that are winning offer this. If you are wanting to become a restaurant franchisee, seek franchisors that are cultivating this type of environment within their model.
Trend #4: Readiness Begins with the Training Where do staff learn the ropes? Who is teaching this generation of team members how to overcome and win during this season? Training is by far the most important of all the trends. I have seen franchise systems that have addressed this new normal from the ground up, making it evolutionary. Their training programs, both in store and at HQ have equipped their people to make guests feel welcome and safe. Like I said, I have seen many restaurants act as if this season will end tomorrow. So they throw a temporary fix on things and it feels forced to the guests. Others have frustratedly adapted to the changes and downsized to a place where our favorite spots feel like a ghost town from an old western movie. Conversely, there are those franchisors who have said, “This is where we are at. We are going to make certain that our guest’s
overall experience doesn’t change. We will change but our services will not. We will adapt in a way that builds customer confidence, not damages it. We will evolve and train our franchisees and their employees on how to thrive now.” These are the ones who are winning. At the end of the day, “adapt and overcome” is really the trend, isn’t it? Seek out the franchise opportunities that are most determined to adapt and overcome—to be evolutionary instead of revolutionary—because those are the franchises that will best teach you. And you will win. Gary Norris is the CEO and founder of Norris Ventures, a firm that helps turn successful restaurant and retail concepts into sustainable, scalable systems; market-ready for either franchising or corporate replication. With over 30 years entrepreneurial experience, Gary and his team at Norris Ventures lock arms with their clients to ensure success and sustainable growth, every step of the journey. Whether you are considering franchising for your business or you need to kick start franchise growth, Gary and the Norris Ventures Team are the true turn-key solution. You can reach Gary at 828-578-3718 or email him at GaryGale@NorrisVentures.com Learn more about Norris Ventures at www.NorrisVentures.com
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