FranchisingFeature trending franchises
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the rise of boutique fitness franchising what’s working in the franchise industry today? 3 key steps your franchise’s facebook strategy is missing Franchising USA
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what’s new!
Always An Angel Homecare Expands to Meet Growing Demand
Always An Angel Homecare, a faithbased senior homecare franchise providing non-medical comprehensive home health care solutions, announced today the expansion of the brand’s home office in Putnam County. The opening of a satellite office in White Plains, New York and the launch of a second affiliate agency to meet the growing demand for home health care. “We keep a strong finger on the pulse of the demand for quality homecare services,” said Steve Velichko, co-owner of Always An Angel Homecare. “Expanding our corporate office and launching our second affiliate agency is allowing us to propel our
franchise growth initiative and provide the best individualized homecare services for seniors and their families.” Always An Angel Homecare provides homecare services for families arranging care for senior-aged loved ones and others living with chronic illnesses, recovering after illness or surgery, individuals suffering with dementia and Alzheimer’s, as well as those aging with declined strength and mobility. “We have an outstanding support system in place, and since launching in 2012, we have seen year-over-year growth,” added Roberta Velichko, co-owner of Always An Angel Homecare. “What sets us apart
from other home health care organizations is our top-notch communication and understanding that quality of care is more important than the volume of clients.” www.alwaysanangelhomecare.com
WOWorks Fast-Casual Restaurant Brands on Track for Impressive Growth in 2021 WOWorks family of restaurant brands Saladworks, Frutta Bowls, Garbanzo Mediterranean Fresh and The Simple Greek, have achieved steady growth for the second quarter of 2021 and the brands are on track to open more than 70 new restaurants before the end of the year. In the past three months, the brands have signed 13 new franchise agreements and opened 18 new locations, including debuts in Utah, California, Texas, Massachusetts and Tennessee – proving the consistent demand for fresh, flavorful and healthy fast-casual dining options. “In addition to continuing to build our traditional restaurant growth, we are looking to redefine the non-traditional restaurant category in unique and relevant platforms. From exploring non-traditional channels such as grocery stores, airports, universities, colleges and ghost kitchens, we are paving the way for growth with all of the brands under the WOWorks umbrella,” said Eric Lavinder, Chief Development Officer for WOWorks.
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“We are especially excited about the possibilities with co-branded WOWorks restaurants that can help franchisees expand revenue hours to include breakfast.” The newly formed family of brands share a core DNA designed to meet a growing demand among Millennial families and GenZ guests who crave healthy, nutritious and flavorful dining options with a high level of customization and convenience. WOWorks franchise owners come from
different backgrounds, including existing franchise owners from different brands; varied business ownership backgrounds, such as construction, hotels, and fitness; former professional athletes; and military veterans. If you are interested in owning a WOWorks brand franchise, visit https://saladworks-franchising.com/, https://fruttabowls.com/franchising/ https://eatgarbanzo.com/franchising/
Two Maids & A Mop Achieves Significant Revenue Milestones in First Half of 2021
Marco’s Pizza® experiencing explosive growth Two Maids & A Mop, the leading residential cleaning franchise, announced today that it achieved significant growth and success in the first half of 2021, attaining a revenue record in June with the highest network revenue record since the brand opened in 2003, and an overall 2021 YTD revenue of $18.8 million. The company celebrated six new openings and welcomed four newly signed franchise owners, with those new locations to be opened in Fall River, Massachusetts, Reno, Nevada, Columbus, Mississippi and Montgomery, Ohio. The system experienced a 73.4 percent AUV increase from 2019, pre-pandemic impact, to the first half of 2021, showing no signs of slowing down in their growth and success. These solid numbers across the system signify the strength of the brand and its position for a very profitable year, with expectations to open ten additional new locations before the end of the year. “The strength and success of our system stems from the dedication of our owners and Professional House Cleaners, so we’d like to extend this congratulations on an amazing first half of the year to each and every one of them,” said Ron Holt, founder and CEO of Two Maids & A Mop. We’re lucky to have a network of owners who are so incredibly motivated and capable of achieving success alongside us as they pursue their entrepreneurial dreams, which has always been our mission. Two Maids & A Mop continues to expand its footprint across the country with its entrance into Utah and Nevada. The force of the brand extends across its entire system, as a staggering 58 of their 90 currently opened locations achieved revenue records in June 2021, in addition to 28 of the other 32 locations achieving revenue records since February 2021. Across the system, the company conducted more than 117,000 cleans in Q1 and Q2, as customers continue to put their trust in the high-quality performance of the brand. www.twomaidsfranchise.com/
Marco’s Pizza, one of the nation’s fastest-growing pizza brands, announces its expansion strategy for the greater Cleveland area, detailing plans to add five new stores to the market by 2025 by partnering with qualified franchise operators. Nationally, the pizza brand has signed 98-plus franchise agreements year-to-date, with over 200 stores in various stages of development, as Marco’s aims to grow its 1000-plus unit footprint by more than 10 per cent this year. The fast-growing pizza brand is experiencing explosive growth, record-breaking sales, and continues to innovate and pilot new programs to sustain its performance. Opening a new store every three and a half days on average, the Top 50 per cent of its franchised stores generated $1,059,574 AUV for 2020*. Marco’s has been operating in the greater Cleveland market since 1989, now boasting 50 thriving locations. With growing brand awareness and open real estate in prime available territories, Marco’s seeks hands-on operators and experienced investors to join its winning team and grow in this established market. “We’re seeking candidates who are passionate not just about Marco’s Pizza as a brand, but also about being committed to community,” said area representative Matt Baker. “We’re a beloved brand throughout this region and want to be sure we grow with franchise partners who share our passion for community. While we’ve identified these as prime markets for development, we’re open to other areas in greater Cleveland-Akron-Canton Ohio as well.” Baker has been a Marco’s Area Representative for 10 years and a franchisee for over 15 years – but most notably, he’s been working for the company since the 1980s when he was just a teenager. Today, he and his business partners – Jones and Jaynes – are the Area Representatives for 14 stores in the Cleveland territory. www.marcosfranchising.com
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I n g r i d N e l s o n | Fr a n c h i s i n g U S A
franchises Are you considering purchasing and owning a franchise business yourself? Which franchises are best suited for your budget and skill set? Which franchises are the safest bet? We share some of the latest trends. Buying a franchise can be a viable alternative to starting your own business from scratch. Franchises offer people wishing to start their own business the independence of small business ownership supported by the benefits of a big business network. A franchise business often has an established reputation and image, proven management and work practices, access to
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national advertising and ongoing support. In a franchise business, the franchisor provides a secure way of operating a business model, in return for ongoing payment of fees and/or purchases. Buying a franchise in America offers many different options. If you are looking for retail, home based, mobile, senior care, automotive, educational, food, and even pet friendly the options are endless for you to start your own business. Some of the top franchise opportunities started right here in the USA. American franchises offer more than other business opportunities in the USA - they give you a proven system to make the best of your franchise journey. When looking at franchises available in the USA and choosing the best franchise opportunities for you, it is always important that you do your due diligence and speak to experts in the industry
“When looking at franchises available in the USA and choosing the best franchise opportunities for you, it is always important that you do your due diligence and speak to experts in the industry who can give you valuable advice.” who can give you valuable advice. Our
franchise magazine contains a wealth of
expert advice to help you get started with a USA franchise.
Speaking to current and past franchisees
is also a must, as they know what it really
involves to operate a franchise in America. Most American franchises will allow you do to this, and even recommend that you speak with existing franchisees.
“The franchises that pay attention to trends by listening, observing and reacting to the needs of their franchisees and their customers are not only making sure their business stays afloat during changing times, they’re building the business traditions of tomorrow.” Franchising and businesses for sale is not a guaranteed path to success, but it is a solid formula based upon tried and tested franchises in the USA that can pave the way to success.
The hottest trend? Resilience!
The ones that have adapted new systems and protocols to keep customers safe, for example, or the ones that have embraced online alternatives to in-person services, or the ones who see future demand for sustainable products and react to meet this need—these are the franchises that are ensuring their franchising system continues to be a trending, relevant one. Many of the changes we have seen in the past year to the way businesses operated were adapted virtually overnight. Some had already been developing over many years; developments like cashless payments, e-commerce stores and home delivery for a wide cross-section of takeaway options have been the norm for some time now. Other developments like QR scans, hygiene stations and social distancing were sudden and reactive. But after sorting out the initial teething problems, franchisors who rallied to quickly react to, and implement, these changes were able to adjust, adapt and survive.
Franchises that are showing resilience in the face of adversity are the ones that have embraced new trends to stay relevant.
The pandemic also opened up opportunities for some franchises and demonstrated how quickly franchise
Franchises in the USA work because they deliver goods or services in a consistent manner, regardless of location. A USA franchise allows for the flexibility of business ownership without so much pressure. However, even the best franchise opportunities will not work for you if you don’t enjoy what you are doing. It is important to find a franchise that suits you. And while many franchises have taken a beating this past year due to the global pandemic and subsequent hit to the economy, a remarkable number of franchises were able to get back up, dust themselves off, and become stronger than ever.
systems can respond quickly to unexpected change. When considering a resilient franchise, take a close look at the ones that have been thriving during lockdown and examine what innovations they introduced and how they managed their business, their people and their future strategies during that tumultuous time.
Franchisors looking to the future Looking to the future, many of these changes are likely to stick around. Customers are likely to continue to appreciate the convenience of home shopping from an online store, menu ordering apps, mobile repair services and increased hygiene and safety standards in home care, health, beauty and fitness services. Over the past year, many franchisors have also been stepping up to support their franchisees. The good news is this seems like a trend that will continue well into the future as franchisors and franchisees realise the benefits of a strong support network in building resilience and longevity. The franchises that pay attention to trends by listening, observing and reacting to the needs of their franchisees and their customers are not only making sure their business stays afloat during changing times, they’re building the business traditions of tomorrow.
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I n g r i d N e l s o n | Fr a n c h i s i n g U S A
“If you are looking for a trending franchise that offers a safer investment, look for a franchise that has an established track record balanced with a keen understanding of business trends.”
Some of the trends ahead for 2021/2022 A trend for convenience and time
Tips for Choosing a Trending Franchise Whatever kind of franchising opportunity you are considering, keep in mind these important tips before making any big decisions on your franchising future. • Trend vs Fad: Some business ideas are here today, gone tomorrow. Taking a risk on investing in a shiny new business proposition can be rewarding, but risky. If you are looking for a trending franchise that offers a safer investment, look for a franchise that has an established track record balanced with a keen understanding of business trends. For example, it might be traditional retail store with household brand name recognition, but one that also offers automated online sales. • Due Diligence: A key piece of advice for all new franchisees is to thoroughly conduct due diligence. This is especially true if investing in an up-and-coming trending franchise. Do your homework, carefully read the Franchise Disclosure Document (FDD), attend networking events and discovery days, and talk to other franchisees. Learn what fees, licensing and royalty arrangements are in place. Don’t be afraid to ask lots of questions. A franchisor with a reputable business proposition with established processes in place should be able to
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answer all your questions, confidently. • Future Thinking: Does the business have longevity? Are the trends they are implementing value-adding to the longterm profitability and trustworthiness of the brand? Again, what you do with the answers to these questions depends on what kind of investment you are seeking. If you are up for a risk and looking for a franchise that will turn a profit in a short space of time, a ‘trendy’ franchise like a fun and quirky food franchise (think Kramer of classic TV sitcom Seinfeld’s out-there business idea of a “pizza place where you make your own pie!”), may be just the ticket. But if you are looking for a franchise with at least a five-to-tenyear commitment, consider whether the product or service being provided will still be popular or in demand far down the track. The most compelling part of the franchising industry is that it’s always developing, growing and finding new and innovative ways to make a successful and profitable business. As consumers needs change and expand, so does the economy and therefore franchises. Trends start to falter and new fads create business opportunities that could be the next new thing that everyone needs or wants. There are constant ongoing opportunities to consider and review for investment.
The economy used to be forced and guided by a human need for materialistic products. Americans took pride in ownership and enjoyed having the best new gadget. While that necessity has never faltered, there is a new driving force behind businesses that has changed the course of business. Consumers are hooked on the idea of paying for time and investing in convenience. A service that provides freedom and time to be with their families is considered money well spent. This has created a trend in related franchises, particularly in Cleaning Services. A working family barely has time to keep up with the demands of a busy household. Cleaning services used to be a trend only available to the luxury class because it wasn’t worth the money for everyone else. Now people budget their income to provide for such a service so they can use their free time to be with family and enjoy the things they love. The cleaning industry is not simply household chores; there are speciality services including window cleaning and dry cleaning, residential cleaning as mentioned above, and commercial businesses - which all have franchising options. There are a variety of options to consider that are profitable within the franchising field. It’s currently a $78 billion industry when you consider all the options available. Though this field of interest is easily accessible because it has a lower start up cost, there are some drawbacks. The
business is very dependent on its workers and reputation. With strong competition, there is always another option down the street or a cheaper option accessed through social media or service apps. Therefore, a franchisor might want to review cleaning standards, talent and HR management and possible turnover. A cleaning franchise with a reliable operations plan, as well as a successful rate for long term employees and management could be more successful and dependable.
A trend for Education and Recreation Educational development is a newer trend with a wider variety of options in franchising. Parents are more likely to invest in their children’s futures and schooling than ever before. Most parents want their kids to have opportunities that they hadn’t as a child and therefore willing to prioritize money to have a better education - as well as knowledge in other categories outside of the school yard. The most common opportunity is supplemental education in the form of tutoring. Some of these franchises have a fixed location with tutors reporting to work during certain hours, while other options allow franchisees to work from home and contract out tutors to customers. These options have different start up costs, responsibilities, and expectations. A large corporation with a steady group of workers has a higher investment fee, but an at home
business may cut into more family and personal time with bigger responsibilities and operational considerations. Recreational franchises include birthday party celebrations franchises. Birthdays are no longer blown up balloons and freeze dance, but rather a huge business opportunity. There is a growing number of mobile franchises have different entertainment packages that can bring the party to you, like gaming trailers or blow up castles. The mobile recreational entertainment franchise has a lower start up fee, but there are stabilized franchises that are open to the public every day and offer birthday party venues: trampoline and indoor jungle gyms, arcade and restaurant opportunities are a few examples. Recreational and sport franchises are on the rise as the demands of parents and children are ever developing. These are great options for those who want to work with kids and run a successful business.
Other poular trends
Mobile businesses are accessible to a lot of people who are interested in franchises and have a lot of options dependent on your passion. Though the work and responsibilities may be a little different than most franchises, it a franchise that is always developing and peaking interest.
The franchising industry has opened its doors to more investors, as opportunities develop and consumers expect more choice but want to spend less money, and now the variety of franchises is endless.
Franchising today offers a bigger world of opportunity than ever before and is constantly developing. Even a trending franchise can grow into new developments that are more popular that it was initially expected.
A trending type of franchise is one within the everyday person’s price range and these include mobile franchises. Without a large location to secure, franchisees work from their home and service people sight on scene.
Either way, all business is developed and determined by the wants and needs of consumers and nowadays busy families want convenience at a lower costs which has been the driving force behind the more popular and trending franchises of today.
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Have Your Say: Chris Conner | President | Franchise Marketing Systems
What’s Working in the Franchise Industry Today? It’s easy to make the assumption that when times get tough, people run for the hills and certainly don’t take the risk of starting a new business. Ironically, it’s exactly the opposite, when times get tough, people start businesses. Based on U.S. census bureau statistics, over 4.4 million new businesses started in the U.S. in 2020 – literally, the highest amount ever on record in U.S. history and almost 25 per cent increase from 2019 – mind blowing! 2021 continued with similar exponential growth in entrepreneurship with over 500k new businesses in January alone. With all of this growth in entrepreneurship, we’ve seen similar growth in franchising. For those folks that have entered entrepreneurship for the first time, franchising offers a valuable and effective way to start a new business with support and guidance from the franchisor.
Who makes up the majority of the franchisee’s buying franchises in today’s market? Franchisees who have invested since March of 2020 come from all walks of life and areas of the U.S. and Canada as they do in most time periods in franchising. But what is unique about today’s buyer is the influence of COVID on many sectors of business has also driven people into the market who otherwise may have stayed at
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their job or current business. COVID has in a sense forced many people to pivot to a new line of work and created urgency for franchise buyers. Most recently, Franchise Marketing Systems has a client, Dumpster Today, which rents dumpsters for construction jobs and residential clean outs. The Franchise launched in 2021 and has sold its first seven franchise territories. Of those buyers, over half were people who either owned a successful business which was shut down by COVID or lost a job due to COVID and were looking for a new opportunity. Essentially, the majority of this new franchise brand’s growth has come because of COVID driving people into franchising. We have seen this in many instances where people who may have at one point looked at their job or career as being safe and consistent and then something like COVID happens and they realize that they don’t have the stability they once thought they did and therefore can justify the risk to start their own business or franchise. The demographics of franchise buyers are increasingly more and more diverse and broadly defined which is great. Women, minorities and people of all ages are investing in franchises and taking the first step towards owning a business. This can also be seen on the franchisor side, an amazing influx of minority owned franchise systems can be found across the country including brands such as Salon 809, Morning Dew Massage, Joe’s Gourmet and Masti Indian Restaurants. The diversity and growth of all population segments in franchising showcases the opportunity for literally anyone to join the franchise industry and benefit from business ownership.
So, what segments in franchising have grown and trending in today’s market? The interesting thing with the pandemic is that we’ve seen a fluctuation in market segments depending on what is the current status of COVID. When the pandemic first set in, Fitness, Food Service and Retail models took a major hit as understandably, people were concerned about investing in
“The diversity and growth of all population segments in franchising showcases the opportunity for literally anyone to join the franchise industry and benefit from business ownership.”
franchises that required the customer to go into a location. On the other hand, service franchises grew at an enormous pace. Painting, Roofing, Fencing, Landscaping and other service segments in franchising literally took off as people rushed into these “Pandemic Proof” industry segments and bought franchises as fast as they could find the right brand to invest in. Now, in 2021, it seems that food service, fitness and some of the more traditional brick and mortar-based franchises have returned to high levels of growth and prosperity as well. People are investing in all segments it seems and have gotten past the concerns related to the pandemic and there have been monumental success stories throughout the year including several franchise systems taking the brand Public and multiple large franchise system acquisitions by Private Equity firms. Virtually every franchise brand has had exceptional growth in 2021 and many franchise brands have broken records for sales activity. Some brands that are particularly exciting and have really taken the market by storm this year. Anodyne Pain Management is a pain management services clinic which provides wellness services to clients from a retail location model. The brand has added 30 new franchise units during the pandemic and is picking up momentum with an increased demand for health and wellness services. Green Earth Pressure Washing is a commercial pressure washing services franchise that has been able to cover the entire state of Florida with new franchise locations, the brand is well positioned to scale over the coming years. Teaspoon Boba Tea has added over 50 new units since the pandemic and is taking the Boba tea market segment by storm. Kika Stretch, a boutique fitness and wellness services brand has grown to almost 20
units during the pandemic and is also picking up momentum. The industry segments are diverse, unique and showcase how much growth there is in the franchise industry overall. One thing for certain is that even with the pandemic, franchising is alive and well and the market is doing as well as it ever has. Both franchisors and franchisees have been able to expand their businesses and brands during the global fight with COVID. We have also seen a rise in businesses and brands which specifically provide services related to managing COVID. Florida based franchisor, Titan Remediation offers a COVID Sterilization service franchise which provides services to residential and commercial clients throughout the Southeastern U.S. and with the growth in demand, the franchise model was developed to offer franchisees a low cost, service based franchise system that could help people with the growing demand for COVID relief services. Along with several other brands including Citrusolutions and Safe Spray, the opportunity to scale a business offering services for COVID sterilization, the consumer market demand for these services has driven franchise growth and innovation. Chris Conner has spent the last decade in the franchise industry working with several hundred franchise systems in management, franchise sales and franchise development work. Chris is a franchise consultant and has a specialized focus in franchise development and franchise consulting work. Mr. Conner leads the Franchise Marketing Systems team in franchise consulting and franchise development projects. He holds a B.S. from Miami of Ohio in Oxford and an MBA in Finance from DePaul University. www.FMSFranchise.com
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Expert Advice: Josh Sample | Ceo | Drive Social Media
3 Key Steps Your Franchise’s Facebook Strategy is Missing Last month, one of our fitness franchise clients told his assigned team that he wanted to exit our 12-month agreement for paid social media marketing after only three months. The relationship was strong out of the gate, we had just traveled across the country to meet the client in-person for the first time, and the account was far surpassing its initial cost-per-lead goal by more than 25 per cent. Needless to say, the team was caught by complete surprise. “My franchisees are coming at me with pitchforks,” our client explained. “I know we are hitting our cost-per-lead goal, but none of these are good leads. Only 8 per cent have converted so far. We’re going to have to shut the ads off”. Does this sound familiar to you? You partner with an agency or hire a social media manager that is supposed to generate leads from Facebook, you run your ads, and after a few weeks, you notice few — if any — of your leads converting, and you conclude that Facebook isn’t the right avenue to market your brand. “My customers just aren’t on Facebook”. No matter your size or industry, that couldn’t be further from the truth. With 2.8 billion active users, Facebook trumps second-place Twitter by a wide margin of more than 18 per cent. However, at my company, Drive Social Media, we hear our new partners and prospects make this statement on a daily basis. The problem is not that your customers aren’t on Facebook, or that Facebook ads don’t work for lead generation. It’s that you haven’t yet figured out how to use Facebook as a sales tool. And you’re not alone. One study found that as much as 62 per cent of small business owners believe Facebook ads are an ineffective channel. But how much of that onus is truly on the platform versus simply user error? Most of the time, when we meet franchise partners who have struggled to generate a return on investment from their Facebook marketing, it’s because of three factors: 1. They chase the wrong metrics 2. They aren’t using their existing data to build an audience 3. They expect Facebook to sell for them
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If you’re expecting to make non-paid posts, boost posts, and perform broad audience targeting on Facebook, you’re setting yourself up for failure from the get-go. Here’s three ways to start off on the right foot.
1
Stop chasing vanity metrics
Here’s a fact that should be obvious to most marketers but for some reason is not: Facebook invented likes, comments, and shares. They did it so that businesses could assign some level of tangible results to their Facebook marketing. But that was before paid ads became king on the platform, and before Facebook had the ability to drive leads, track sales, and report on ROI. So those little thumbs and hearts may give you a rush of dopamine, but they won’t do anything to produce revenue for your business. There has never been a correlation between likes, comments, and shares as they relate to purchasing intent. Stop chasing them. So what is the right metric to track? Here’s the thing: there’s no one-size-fits-all approach to key performance indicators (KPI) on social media for every brand. Website traffic and cost-per-click might seem valuable. But if your website isn’t set up to convert, has broken links, slow load times, and shoddy navigation, your traffic won’t convert anyway, so you can’t blame the original source of your visitors if those visitors aren’t being taken to a website that makes it easy for them to buy from you. On the other hand, it might make sense to focus on leads generated from social as a better KPI than web traffic. But if you don’t have a sales team in place that can effectively follow-up on those leads and keep them on a consistent, scalable process, then you can’t really set a lead goal as a KPI because your closing percentage won’t remain consistent either. In order to evaluate the ROI of social media leads, your sales funnel needs to be mapped out and followed to a T.
2
Utilize Your Current Cu stomer List
Facebook allows you to use virtually any data you have to target potential customers. But most “social media marketers” that you
can hire on a freelance basis will simply build audiences based on demographics and interests. That’s literally saying that you believe you’re smarter than the algorithm. Lookalike audiences allow you to use the power of Facebook’s Edgerank algorithm to target potential customers based on their behaviors, not just where they live and what they like. You can get super-granular with this too. For our partners, we commonly use valuebased lookalike audiences that are built off the business’s current customers with a 1per cent variance. What that means is that we target people who walk, talk, and act just like our partner’s current customers, and we focus-in on the individuals in that audience who are likely to spend the most money. You can also use your customer list to do things like exclude your current customers so that any campaigns that are targeted to new customers don’t spend money on advertising to people that are already in the ecosystem of your business. Customer data is king when it comes to advertising and Facebook allows you utilize yours more effectively than any other social platform.
3
Follow-up, follow-up, followup
Social media leads are naturally going to be colder than leads that come through your website or call your business. It might feel like they’re all in the same stage of the funnel, but on social media, you are targeting people who have never had a touchpoint with your business, and possibly have never even heard of your business. The people coming through your website and your phone line found you somehow — they didn’t just magically end up there. So they’ve actually been nurtured to some extent by your website, Google, word-ofmouth, or some other form of advertising. They were actively looking for your product or service before they reached out to you. The leads you generate on social media aren’t people in shopping mode — they’re people who are just trying to kill five minutes while they’re in the grocery line, stuck in traffic, on their lunch break, smoking a cigarette, etc., and your business
Josh Sample
“Paid social media marketing is more than just picking an audience and uploading a picture. The more you understand the platforms, utilize your existing data, and treat social media like a sales machine, the more likely you are to get positive results.” caught their attention at the right time. They haven’t called you or been to your website or done any advanced research on you. So, they’re above your other leads in the funnel, which means you need to mine those leads like gold. Our internal research shows that when a lead is called within five minutes of submission, they close at a 22 per cent higher rate. A fully developed cadence to work your leads is also necessary and needs to be followed verbatim every single time. Paid social media marketing is more than just picking an audience and uploading a picture. The more you understand the platforms, utilize your existing data, and treat social media like a sales machine, the more likely you are to get positive results. Josh Sample is the Founder and Chief Executive Officer of Drive Social Media, and the creator of Marketing Milk. Josh is passionate about scaling businesses and bringing transparency to the digital advertising world. www.drivesocialnow.com
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Expert Advice: Adam Rice | Founder & CEO | ISI Elite Training
The Rise of Boutique Fitness Franchising The COVID-19 pandemic has energized the health and wellness industry across the board. From healthy eating concepts to fitness centers, people are proactively taking more control of their health and lives through healthy living. But the pandemic didn’t start the health craze. at $27B, with the total market size of the global fitness club industry just over $96B. About the time Olivia, Jane Fonda, Suzanne Sommers, and Richard Simmons were getting physical by sweating to the oldies, fitness centers like Gold’s Gym, 24 Hour Fitness. L.A. Fitness was taking off in popularity. Add in Hollywood action heroes and other personalities such as Arnold Schwarzenegger, Lou Ferrigno, Sylvester Stallone, and Body by Jake (Jake Steinfeld), and you have a heavy-weight line-up of celebrities pushing the fitness industry into a new age. Adam Rice
It has existed for decades, surging in
the early 1980s. Credit MTV or Olivia
Newton-John’s “Let’s Get Physical” song
and video, health clubs began springing up in cities across America. Today, the fitness industry is big business. Some reports
indicate that the U.S. fitness industry sits
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Even with an all-star cast of fitness types working in the 80s, the overall fitness industry wasn’t considered mainstream. The 1990s and early 2000s saw an explosion in the fitness industry. Many more regional and national chains started opening their doors. According to an equity research firm, 17 million people in the U.S. spent $6M annually as members of the country’s 10,000 gym locations.
The research firm reports that by 2016 health club locations and memberships more than tripled to 36,000 and 57 million, respectively, and total revenue increased 450 per cent to $27 billion. Leading up to this time, the fitness industry followed a very similar and easy-toinstitute business model: • Build a facility in a high-traffic location (the bigger, the better) • Fill it with equipment (both old and new workout modalities) • Aggressively sell memberships until all fixed costs are covered • Reap rewards of membership fees more than fixed costs • Target non-fitness types of signing yearly contracts in the beginning when they are super pumped (pun intended) about working out Planet Fitness lead the pack posting record numbers from its first franchise in 2003
INDUSTRY STATS • The global fitness industry is worth $96.7 billion. • The number of gym members is expected to reach 230 million by 2030. • High-intensity interval training (HIIT) is at the top of the list of fitness trends for 2021. • The USA is the world’s largest fitness market with 62.4 million gym members, according to the fitness center industry statistics. • Europe, Russia, Poland, and Turkey will see the biggest increase this year, predictions about health and fitness industry growth show. who wanted to get back to the “blood, sweat, and tears” workouts that we watched Rocky Balboa conduct time and time again (or at least five movies worth). This breakaway focused on a highly tailored experience and typically cost a bit more than the static gyms of the day.
to 1,400 locations by 2017 with more than 10 million members— 17 per cent of the total market. The company targeted the non-gym members and built a casual “nojudgment zone” to keep people comfortable about their individual fitness levels. The other areas where gyms and fitness centers knew they could create new revenue streams were adding in personal trainers, aerobic group classes, tanning machines (especially in the 90s), and merchandising. At this point, fitness centers started to feel static. They all had different names but essentially offered the same thing. At that point, it became a game of real-estate and locking down high traffic areas, but this over-saturated the market, and it started to flatline. During this time, a phenomenon started to occur. To stand out from the monotony of the big-box fitness centers, boutique fitness gyms began opening, targeting the hardcore fitness clientele. Mainly those
This was the moment when fitness boutiques defined themselves as a viable fitness option while redefining the landscape of the entire industry. Each concept adapted a unique fitness modality to cater to specific age groups, fitness levels, and micro-communities. Many people, at this point, were seeking a more specialized, unique fitness experience other than hitting the weights and the nautilus machine circuits. They wanted to find the joy of fitness again. Highlighting their rapid expansion, the definitive trade organization IHRSA notes that boutique memberships expanded 74 per cent from 2012 to 2015, compared to five per cent for health clubs. Admittedly, boutiques started from a smaller base, but their share of total revenue—some 35 per cent—showcased its staying power. The move of boutique fitness concepts shifted the overall fitness industry paradigm and left the big-box gyms somewhat holding the (punching) bag. Boutique concepts offer value and experience over hype and promise. Regardless of laying down a yoga mat or saddling up to our front-row spot in cycle class, the big business of fitness faded into the background. With that said, the shift was taking place and has recast the entire industry into a diverse landscape of select modality boutique fitness concepts. Starting in the early 2000s, boutique fitness centers grew aggressively and continued to build momentum. People now had
many choices to select the type of fitness regimen they wanted. Through this growth, many boutique fitness concepts launched in regions across the nation. Barry’s Bootcamp in the northeast; CorePower Yoga in the west; Pure Barre (balletinspired group exercise) in the Midwest; and ISI® Elite Training in the Southeast, to name a few. These boutique concepts created unique cultures and fitness beliefs that attracted many. As we see today, many fitness boutique concepts were either crushed or strengthened by the COVID-19 pandemic. ISI® Elite Training fell into the latter category. Our brand is growing exponentially and has emerged from the initial pandemic phase more vigorously than ever. We’ve sold 62 units in three years, opened three new locations at the height of the pandemic and are approaching 30 locations in development across eight states. Impressively, and a nod to our unique modality and member dedication, we increased membership by 51 percent in the first two quarters of 2021, maintained 84 percent membership rates through the pandemic and kept the community engaged in fitness by pivoting to live, virtual classes. As we’ve transitioned back to fully in-person sessions, all locations that have opened in 2021 have opened profitably and with hundreds of eager and excited members. Today, we are back to basics, working hard and getting our members fit from the long months of isolation, shutdowns, and poor eating habits. COVID may be around for quite some time, but so is our desire to overcome this challenge together and live happier, healthier lives through proper nutrition and fitness. In 2011, ISI® Elite Training Founder, Adam Rice opened his first facility in Myrtle Beach, South Carolina. Adam selected the name ISI® Elite Training based on Proverbs 27:17: “Iron Sharpens Iron, as one person sharpens another.” In 2019, ISI® Elite Training opened its successful boutique gym concept to franchising built on a philosophy of community alignment where likeminded people inspire, motivate, and hold each other accountable to achieve their desired results.
Franchising USA
fe at ure : t r ending fr anchises
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