Veterans in franchising USA May by CGB Publishing

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Veterans in Franchising may 2017

www.franchisingusamagazine.com

Frozen Dessert Franchise Aims to

Touch Base With Military A Blue Letter Day for Veterans what makes

a Veteran a Veteran? Franchising USA

SAME DRIVE. DIFFERENT BATTLEFIELD. TAKE THE NEXT STEP > VETFRAN.COM OFFERING FINANCIAL SUPPORT, TRAINING & MENTORSHIP Veterans interested in franchising can take their skills learned in the military to successfully own and develop small businesses. Learn more and support veterans in franchising at www.vetfran.com.

• 650 franchise companies participating • 151,000 veterans and their spouses found careers in the franchise industry • 5,100 veteran franchise owners

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V eterans in F ranchisin g S upplement may 2 0 1 7 Our Veterans in Franchising special supplement has become a regular feature of Franchising USA. To share your story in the next issue, please contact Vikki Bradbury, Publisher Phone: 778 426 2446 Email: vikki@cgbpublishing.com

Contents On the Cover 46 Frozen Dessert Franchise Aims to Touch Base With Military 52 A Blue Letter Day for Veterans 48 What Makes a Veteran a Veteran?

News and Expert Advice 48 What Makes a Veteran a Veteran? Kaleb Warnock, Tropical Smoothie Cafe 52 A Blue Letter Day for Veterans Jim Mingey, Founder and Managing Director,

Veterans Business Services

Veterans Profile 50 The Melting Pot

Franchising USA

V e t erans in Franchising

sweetFrog

Frozen dessert franchise aims to touch base with military

If one Virginia based franchise has its way, American military bases will be getting a lot sweeter and a lot more amphibious.

locations on some military bases.

SweetFrog, a frozen yoghurt and dessert

Pucel is hopeful the franchise will see locations popping up on bases within the next six to nine months.

franchise headquartered in Richmond, VA, is currently in talks to potentially open

Franchising USA

â&#x20AC;&#x153;Lately, weâ&#x20AC;&#x2122;ve definitely seen a surge in interest from military veterans and transitioning individuals who are looking to develop sweetFrog locations on military bases across the country,â&#x20AC;? sweetFrog Director of Franchise Marketing and Development Shemar Pucel said during a recent interview.

The possibility of getting more veterans on board is exciting for Pucel, who comes from a military family herself. Their training and experience in the military means veterans know how to take processes and procedures and deploy them to the highest level, the sweetFrog franchising director said. She estimates between 20 and 25 percent of sweetFrog franchisees are former military members. The company recently sent out a survey to franchisees to

ascertain exactly how many are veterans, Pucel noted, adding that she recently signed up two more veterans within the last three months. The usual VetFran incentive for sweetFrog is 25 percent off the franchising fee, but that goes up to 50 percent off in both May in honor of Military Appreciation Month and November in honor of Veterans Day. This discount can also be applied to two of their newer models, including their mobile truck and trailer options.

Family focused Started in 2009 by founder Derek Cha, sweetFrog began franchising in 2012. The company currently has 340 locations, of which 70 are corporate stores and rest are franchises. Aside from veterans, sweetFrog has franchisees from all walks of life, including people who have exited corporate America, but who don’t want to retire yet, and franchisees of other concepts who are looking to diversify their portfolios. Pucel pointed out that because sweetFrog is a family brand, it tends to attract husband and wife teams and parent and children teams of entrepreneurs. That family oriented outlook is apparent in the sweetFrog brand. It offers birthday packages for families with their mascots Scoop and Cookie. One theme is “Princess and a sweetFrog,” where little girls get dressed up as their favorite princess. They also have super hero nights. “Boys and girls and even adults can come in dressed as their favorite super hero and have a fun place to hang out,” Pucel explained. Modelled after the popular adult event of wine and painting nights, sweetFrog also offers painting nights and days for children, where kids get a free cup of yogurt and learn how to do some painting. The brand also makes a point of working with schools, non-profit organizations and clubs like Girl Scouts of America to teach children about business and finance. This is all in keeping with Cha’s original intention with the brand.

“Lately, we’ve definitely seen a surge in interest from military veterans and transitioning individuals who are looking to develop sweetFrog locations on military bases across the country.” - Shemar Pucel “He really founded the business to be a good neighbor, to give kids and their families a safe haven where they could come in and enjoy a great dessert and be supported as a member of the community,” Pucel said.

California and two in Nevada, the brand is pushing a western expansion. Arizona is a top priority for the company, as well as continuing their buildup in Texas and establishing themselves more in Southern Florida.

Purchased by Boxwood Capital Partners in 2015, sweetFrog still strives to exemplify family and community involvement in their brand.

A franchisee in the Dominican Republic just recently opened their seventh location in February.

Becoming a sweetFrog The brand has 35 individuals based in their corporate headquarters that are there to assist franchisees with all aspects of the business, including buildout, lease negotiations and marketing. The brand also does a lot of national advertising for franchisees. Six district managers and a director of operations are out in the field all the time visiting franchisees and providing on-site training as needed. Franchisees also come to Richmond for training about three or four days before they open their store for in-house training. sweetFrog representatives also do a final walkthrough with franchisees and help them throughout the grand opening of their stores. Plus, the brand holds an annual convention and gives franchisees access to an online educational library that is always available to them. “We kind of hold their hand from start to finish,” Pucel noted.

Pucel pointed to sweetFrog’s branding as being a big difference maker for the company, particularly their cute mascots, Scoop and Cookie. “Kids absolutely gravitate toward them,” she said. Along with the mascots, the brand’s14 proprietary flavors that only sweetFrog franchisees can access and their focus on children’s events and connecting to the communities they’re in all help sweetFrog maintain a strong brand presence. With bringing more veterans on board and keeping their focus on family and community, sweetFrog is poised to hop onto those military bases in the near future with some major entrepreneurial opportunities for the right people. www.sweetfrog.com/franchise

25% off of our initial franchise fee for Veterans! (Doubled in May and November each year)

Coast to Coast Currently, sweetFrog is in 28 states and five different countries. In the USA, the brand is everywhere from Maui, where it just recently opened, to New York. It has a particularly high density on the east coast. With 20+ locations in Texas, five in

Learn more at www.sweetfrog.com/franchise or call (844) 564-FROG

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V e t erans in Franchising

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V e t erans in Franchising

Kaleb Warnock, Tropical Smoothie Cafe

What Makes a Veteran A Veteran? “I would recommend to any fellow veteran looking for a new career path to explore franchising, do the research and find an option that best fits them.”

Kaleb Warnock

What makes a Veteran a Veteran? Well, we’re just regular Americans who have decided to serve our country. As for the reasons why, there are a multitude; patriotism, adventure, excitement, travel, school, money, the list could go on and on. We aren’t any different from the person next door and most of the time, we don’t even realize we did anything worth acknowledging. It’s just our duty. And our duty continues once we leave the service, as we have our future and the future of our family to think about. We go through extensive training in the military and learn skills that can be directly applied to just about any industry. I chose to become an entrepreneur after my time in service.

Franchising USA

As a business owner, I often come across employee candidates with military experience and typically find myself inclined to put them on the top of my short list. Not for preferential treatment, but because I know the invaluable skills the military teaches you, such as the importance of discipline, how to become a leader, the significance of work ethic and paying attention to the details. All of these important techniques reside in any military veteran’s arsenal and can be readily applied to any business concept given the opportunity. The military taught me the necessary skills I needed to help make my dreams become a reality and I always try to be an influence to others seeking a career path after their service. Once mine came to a close, I came across ownership opportunities with Tropical Smoothie Cafe, which at the time offered something to veterans that I had never seen done before. The company’s VetFran program offered 50 percent off of its franchise fees to military veterans. For me, that extra savings incentive was all I needed to move forward in pursuing my new career as a business owner. I’ve seen through firsthand experience the effectiveness of the franchise model and what a great business path it can

be for military veterans. Most proven franchise systems for that matter provide its franchisees with an established working model that is a recipe for success if executed properly. This type of business model is the perfect fit for any veteran looking to chase their entrepreneurial dream with the support of a strong corporate team. In the military, you are trained everyday on how to follow standard operating procedures, improvise and make quick decisions. As a military veteran, I am very fortunate to have found a franchise that not only offered the VetFran discount, but also had a training program that provided a path to success. I would recommend to any fellow veteran looking for a new career path to explore franchising, do the research and find an option that best fits them. The franchising industry offers unique opportunities to be your own boss while simultaneously having the sense of security that comes with buying into a proven business model with support systems in place. Kaleb Warnock is a former Master of Arms in the U.S. Navy and Tropical Smoothie Cafe Multi-Unit Franchisee. www.tropicalsmoothiefranchise.com

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T he M elting Pot

Marine Corps Veteran Franchisee Rises Through Melting Pot Ranks to Ownership

There was a time when Kelly Cooper wasn’t even sure he would graduate from high school. He wasn’t exactly committed to his studies. He did have an inherent love for his country, so he decided that the United States Marine Corps would be a natural next step for him - a career path he could commit to. He served for four years in the Marines, rising to the rank of Corporal (E4). His specialty was anti-tank and demolition in the Infantry. While he was stationed at Camp Lejeune, he travelled around the globe, serving in Cuba, South America, South Korea and Okinawa, Japan. It was an amazing experience for Cooper, but he was looking to be “more settled” in life.

“The real estate and location are critical. Veterans need a franchise that can provide assistance with this and more.” - Kelly Cooper Franchising USA

He returned to the States to continue his education at Parkland College in Champaign, Illinois. It was there that he bartended and managed at TGI Fridays and discovered his love for the restaurant business. He then embarked on a career in restaurant management, first at Biaggi’s Ristorante Italiano and later at Rock Bottom Brewery before landing at The Melting Pot in 2005.

“In addition to incentives that franchises provide veterans, Cooper also suggests that veterans consider the training and support that a franchise can provide.”

He started as an assistant manager at The Melting Pot in Phoenix, learning a lot and honing his skills in a short period of time. After gaining key experience and knowledge, he was promoted to General Manager after only three to four months. After a year, he moved to Scottsdale and served as their General Manager for a few years. When an Area Manager position became available, he took advantage of the opportunity for even greater responsibility with the brand. Finally in 2010, he realized his dream of ownership. Over the past seven years, he became partners with Dan Arndt and Mark Rosenthal in the Scottsdale, Phoenix and Glendale locations and franchisee of the Tucson Melting Pot. Cooper was mentored and encouraged by Dan and Mark from the beginning and credits them with making his dreams of ownership possible. He also credits the Marine Corps with putting him on the right path. He could have easily lost his way after high school, but found the structure of the military to be even more beneficial than college in some ways. Many of the skills he learned in the military translated into restaurant management and ownership. The military framework and leadership skills learned while serving in the infantry lend themselves well to franchising. “You are essentially following someone else’s system. Implementing someone’s plan and making it successful – just like in the military,” said Cooper. “Attention to detail is important in the Marines. You need the same level of detail in franchising. It [the Marines] really changed my life, gave me practical training and put me in a position to be a successful franchisee.”

“Attention to detail is important in the Marines. You need the same level of detail in franchising. It [the Marines] really changed my life, gave me practical training and put me in a position to be a successful franchisee.” - Kelly Cooper Cooper agrees that The Melting Pot is a great place for veterans to utilize the skills they gain from military service. And, the veteran incentive is definitely a bonus. The brand offers 20 percent off the initial franchise fee of $45,000 for veterans through the VetFran program. This discount applies to the first franchise and requires the individual qualifying for the discount to be the majority owner. In addition to incentives that franchises provide veterans, Cooper also suggests that veterans consider the training and support that a franchise can provide. “The real estate and location are critical. Veterans need a franchise that can provide assistance with this and more,” added Cooper. “As a franchisee, you are buying

into a system and process. We need access to people and resources that help us grow our business. I feel really good about the support we get at The Melting Pot.”

The support he receives also allows him to spend more time outdoors and on the lake, as well as with his wife, Erin, and their

children Kennedy (3 years old) and Mason (2 years old). He also carves out time to learn more about running a business, as

he wants to build a legacy for his family and would love for his kids to join him

in business if they have a passion for the

restaurant industry. But, at the end of the

day, he just wants his kids to be happy and enjoy what they do. Just like he does. www.meltingpot.com

Franchising USA

V e t erans in Franchising

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V e t erans in Franchising

Jim Mingey, Founder & Managing Director, VBS

A Blue Letter Day for Veterans? April 21, 2017

Community Public Offering $250,000 10,000 Shares For Oregon Residents Only

Community Public Offerings are finally gaining momentum to provide equity finance for Veteran owned startups, including franchises. Whether a red-letter day or a blue letter day doesn’t matter, what’s important is that it could be a “V” letter

So, what’s a CPO? If you Google: “Community Public

Offering” you should find it at top of the

day for Veteran Small Business because as of April 21,

list. You’ll also find a lot of information

2017 the Securities and Exchange Commission (SEC)

Oregon, which is leading the charge

about the CPO, most of it posted by Hatch

is now allowing interstate advertising for Community

to make the CPO a viable way to raise

Public Offerings (CPO) to raise cash.

indirectly help Veteran small businesses

Franchising USA

cash in Oregon. And Hatch’s efforts will

“The current lifting of the advertising restriction is very important because one can now use social media to market an offering and to let the world know about your business idea as well.” in another 35 states where its legal to offer a CPO. Before April 21st a CPO couldn’t even advertise its offering in the Oregonian Newspaper because it be might be read as close as 10 miles away across a state line in Vancouver, Washington. Now it doesn’t matter if someone in Philadelphia reads the advertisement. New SEC Rule 147A will permit issuers to “engage in general solicitation and general advertising of their offerings, using any form of mass media, including unrestricted, publicly-available Internet websites, as long as the sales of securities so offered are made only to residents of the state or territory in which the issuer is resident”. The CPO is not about funding vehicles like Kickstarter which provides noninvestment funding for contributors who are willing to pre-purchase, contribute to, or support a business for personal reasons. The CPO is a securities-based funding giving ownership, or a promise of future revenue to investors in equity or debt. This is a mechanism that enables broad groups of investors to fund startup companies and small businesses in return for possible economic gain. Investors can give money to a business and receive ownership of a small piece of that business. If the business succeeds, then its value goes up, as well as the value of a share in that business—the converse is also true. What this means is that any Veteran entrepreneur can access significant equity capital with modest organizational costs to acquire or build a business. Up until recently equity offerings were almost entirely sold only to high net worth accredited investors in private offerings. Individual states do set some restrictions on the CPO for purchases by the public,

including, but not limited to, the amount of investment purchased and age of the investor. However, the size of the CPO can sometimes exceed $1,000,000 (limited to $250,000 in Oregon) and the organization and filing cost of the CPO can be under $5,000 as opposed to multiples of that amount for a private offering. The current lifting of the advertising restriction is very important because one can now use social media to market an offering and to let the world know about your business idea as well. With a CPO, a Veteran could acquire rights to multiple franchise locations and stage in the required equity for each one, setting a minimum and maximum for their CPO. If you’re a Veteran interested in learning how to advertise or structure a CPO to fund your equity to start a business or to acquire a franchise, just contact the Veteran Business Services Help Desk at 503-344-6945. If you’re a Combat Veteran who wants to learn how to help other Veterans raise capital in your home state using VA Chapter 31 benefits, just forward your DD 214 and we’ll arrange an appointment to discuss an evaluation and application. And if you’re a Veteran who is a graduate of the Entrepreneurial Bootcamp for Veterans with Disabilities (EBV), we’ll provide you a special

Jim Mingey

discount on all our franchise services. We guarantee a Veteran client the best price and discount on any franchise acquisition. VBS Founder and Managing Director, Jim Mingey, is a decorated Vietnam veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment (VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States exclusively for veteran owned small businesses and franchises: The Veterans Opportunity Fund. Jim intends to keep on ‘advocating’ for veterans in franchising. www.VeteransBusinessServices.us

“Before April 21st a CPO couldn’t even advertise its offering in the Oregonian Newspaper because it be might be read as close as 10 miles away across a state line in Vancouver, Washington. Now it doesn’t matter if someone in Philadelphia reads the advertisement.”

Franchising USA

V e t erans in Franchising

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ex per t advice

Matthew Jonas, President, TopFire Media

Start With Your Story:

How All Franchise Marketin Stems From Strategic Messaging

According to the International Franchise Association’s “Franchise Business Economic Outlook for 2016,” there are 795,932 franchise establishments, representing more than 3,000 franchise brands in the United States. Needless to say, there’s no shortage of choice for those will heavy pockets and a desire to operate a franchise business. To stand out in the pack, effective franchise marketing is paramount.

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There are plenty of ins-and-outs to highly targeted digital marketing and public relations tactics, but the first and foremost component to any campaign stems from its ability to tell the brand story on a emotional and logical level. Consider this metric for message development: If you can substitute a competitor’s name for your own and the message is still cohesive, you’ve failed to differentiate your brand, and most importantly, your franchise opportunity. If you find yourself in this unfortunate predicament, it’s time to get back to the drawing board.

Be different, not ‘me too’ When it comes to franchising, there are dozens of ways to differentiate an

opportunity, with most having their own advantages. Aside from concept, think of components like size of investment, target market or franchise structure. Wherever that differentiation occurs, find your “EST” and push it hard. While being the biggest, cheapest, easiest, quickest or hottest “something” leans toward a retail consumer perspective, many of the same principles apply for franchising, especially when it comes to concepts that are undifferentiated from the start. All too often, companies try to be the “best” at all things for all audiences. Unfortunately, these brands quickly learn that the desire to succeed at all things leads to mediocre everything, a long-term disaster. For franchise marketers, staking a position in two of these five “ESTs,” while perhaps identifying new “ESTs”

concept side-by-side and make the most logical choice based on that analysis? The short answer of course is, no.

arketing

Typically, most buyers will consider a dozen or so opportunities before making a decision, with most of those considerations coming from a specific industry segment they are initially drawn towards. And buyers are drawn to industry segments for any number of reasons. Perhaps a buyer has prior experience they’d like to leverage, or they’re looking for an opportunity to have the most fun but still have a high return on investment. Maybe they are only looking at franchise brands that have a certain number of locations, or have been in business “X” many of years. The point here is that every process will be different. Operate under the assumption that each and every buyer is looking for reasons to eliminate your concept from consideration, not the other way around. That also means crafting a story that attracts serious candidates and not those just perusing. While that may sound harsh or counterintuitive, the basic principle of successful franchise marketing is to eliminate the time wasters, and move those “A” prospects along in the sales pipeline.

along the way, is essential in commanding higher ground over potential competitors. Put simply, good franchise messaging works to create a strong value proposition by controlling the desired position in the marketplace. This remains certain for franchise marketers: Upfront work to stake a position in the marketplace ensures that the messages about your brand/concept are coming from you, not your competitors.

Buyers may be shopping differently Refer back to the opening statistics, and think hard about how a franchise buyer might consider his or her options. Would they systematically analyze more than 3,000 concepts? Would they put each

From a messaging perspective, provide enough essential information for prospects to self-disqualify, like the investment details, but withhold enough information that requires further exploration, perhaps on your franchise website or marketing materials. Remember though, the messaging on a franchise website never sold a franchise on its own, so ensure that you don’t give it all away upfront, and instead encourage follow up via a form fill.

franchisees and what differentiates top performers from those whose performance is marginal or worse. A specific side-byside comparison of these two groups will often yield insight to better focus your marketing efforts. Additionally, it’s important for a franchisor to ask themselves specific questions about: What personality traits are right for this business? Is there a particular age range that would fit best? These questions, among others, work in conjunction to create a picture of “the ideal franchisee” and help franchise marketers develop messaging that influences potential franchise buyers on a logical and emotional level. Matthew Jonas is the president of TopFire Media, an award-winning integrated public relations and digital marketing agency specializing in franchise marketing and consumer branding. Together with the leaders of iFranchise Group and Franchise Dynamics, Jonas established TopFire Media to provide a strategic and synchronized method for digital marketing in the franchise industry. As a digital marketing strategist with more than a decade of in-depth experience in SEO and PPC, social media publishing, conversion based marketing, inbound marketing, sales management, and online lead generation, Jonas has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com

Messaging via personas Before any funnel can overflow with leads, your high-impact messaging should stem from understanding your potential franchise buyers, and developing personas from that understanding. This starts with a detailed assessment of the profile, needs, goals, pain points and behaviors of the potential franchise buyer. A good place to start is by looking at your own

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ex per t advice

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