AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
FranchiseConnect
®
VOL 01 ● ISSUE 01
MAY/JUN 2019
TOP 10 REASONS to consider buying a franchise
4
Basic Types of
FRANCHISES
LOOKING FOR A NEW START
find out everthing you need to know DOES YOUR FRANCHISE
BUSINESS NEED
A MAKEOVER?
7 questions to find out
MEET THE PEOPLE BEHIND THE BRANDS
SOLDIERFIT
HQ2: EFFECT ON THE FRANCHISE SECTOR IN THE DC AREA
BREEDING HENRY BAYSAN BHB Worldwide
breedinghenrybaysan.com
PRACTICE AREAS ● ● ● ●
Corporate Mergers & Acquisitions Real Estate Transactions Litigation & Dispute Resolution
● ● ● ●
White Collar Defense/Government Investigations Compliance Government Relations & Public Policy Aviation Specific Representation
Providing Superior Health Care Programs that will Positively Affect Millions of Lives! Offering A New Opportunity in Revolutionary Health and Wellness Services for Individuals and Organizations. Our franchisees provide services in three vertical markets that are in huge demand today: 1. Medical Support Services Behavioral Health Screenings DNA Testing Nutritional Supplements Weight Loss System Chronic Care Management (CCM) Thermal Imaging 2. Senior Wellness 3. Workplace Wellness
The RX2Live franchise offers an outstanding return on investment for the franchisee and fills a critical need in the marketplace. You are in the right place at the right time to position yourself in a unique franchise that is poised for explosive growth.
Judy Cole (757) 323-3798 jcole@rx2live.com http://virginiadc.rx2live.com
Our mission is to make you a customer - for life.
OFFICE (703) 893-1700 CELL (703) 625-1381 1592 Spring Hill Rd. Tysons Corner, VA 22182 T Y S O N S
C O R N E R
oyilmazer@rosenthaljaguar.com www.rosenthaljaguar.com
SALES AND SERVICE OPEN SEVEN DAYS A WEEK
We pledge you won’t be disappointed!
COMMERCIAL BUILDING SERVICES NEW BUILD
●
REMODEL
●
UPFIT
ITEK Construction + Consulting, Inc. | 627 Carlisle Dr. Herndon VA 20171 Phone (703) 261-6663 ● info@itekconstruction.com ● www.itekconstruction.com
IN TODAY’S WORLD OF ENDLESS BRANDS, CONSUMERS WANT SOMETHING DIFFERENT
“There are seven restaurants around me, and mine’s the one with the line out the door.”
OWN THE FRANCHISE WITH LINES OUT THE DOOR
— Sean Gray, California Tortilla Franchisee
As an entrepreneur, it’s easy to read between the lines and realize California Tortilla offers a healthy bottom line. California Tortilla franchisee, Sean Gray went from working for someone else in the restaurant industry for 20 years to owning his own profitable franchises. And with seven restaurants around him, his is the one with lines out the door.
ADD PERFORMANCE AND PROFITABILITY TO YOUR PORTFOLIO
POPULARITY HAS ITS PERKS... REPUTATION HAS ITS REWARDS
• Remarkable earning potential: average annual gross revenue is $1,023,268.1
Voted Best Burrito, Best Taco, Best Vegetarian, Best Mexican and Best Kids Restaurant by Washingtonian Magazine, named to Fast Casual Magazine’s Top 100 Movers and Shakers, Nation’s Restaurant News Next 20 Emerging Chains, one of the Top Ten Fastest Growing franchise concepts by RestaurantChains.net, and voted Zagat’s Best Bang For Buck.
• Top ratings from industry experts and a forerunner in the rapidly growing $30 billion a year fast-casual restaurant market.2 • Award winning, critically acclaimed food with a fiercely loyal fan base of repeat customers. • Successful and innovative high-profile promotions, press coverage, and extensive social media networking.
TIME TO ENJOY YOUR OWN LINE OUT THE DOOR!
• Perpetual growth, ongoing corporate support, and an easy-to-follow, leading edge business model.
FOR MORE INFORMATION VISIT US AT: FRANCHISE.CALIFORNIATORTILLA.COM OR CALL TOM QUINN AT: 720.316.6625
Copyright ©2019 California Tortilla. California Tortilla Group, Inc. 7825 Tuckerman Lane, Suite 214, Potomac, MD 20854. This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure. 1 Average annual gross revenue $1,023,268 per unit as stated in Item 19 of California Tortilla 2019 FDD 2 “Fast casuals fuel growth of restaurant industry,” Fast Casual, April 29, 2015: fastcasual. com/news/fast-casuals-fuel-growth-of-restaurant-industry/.
WHAT'S INSIDE
09
FROM THE PUBLISHER Franchise Connect Magazine: Bridging Gaps between Investors and Franchisors
Sitki Kazanci
10
TOP 10 REASONS to Consider Buying a Franchise By Freddy O’Pry
13
COVER STORY
14
Amazon’s choice has also enhanced Northern Virginia’s reputation as one of the best sites for corporate headquarters. Northern Virginia has a reputation for enticing in several big names, like prompting Nestle’s U.S. headquarters to come to Arlington, Hilton Worldwide to Tysons Corner, and Volkswagen Group of America to Herndon.
HQ2’S
EFFECT ON THE FRANCHISE SECTOR IN THE DC AREA
Why Franchising Makes Sense for So Many Women By Faizun Kamal
20
Starting a Franchise Journey By Jason Power
22
DELEGATING 101: Because You Can’t Do Everything By Mary McHugh
24
4 Basic Types of Franchises By Freddy O’Pry
26
What Works at a Trade show for Successful Franchisors, like the United Franchise Group By Michael Webster
28
When Should I Franchise My Business? By Chris Conner
18
MEET THE PEOPLE BEHIND THE BRANDS
SOLDIERFIT
30
Power of Positive Thinking By Melissa Kazanci
32
Does Your Franchise Business Need a Makeover? 7 Questions to Find Out By Sara Jensen
34
How Do You Recruit and Select the Best Sales People? By David N. Smith
MAY-JUN 2019 | FRANCHISE CONNECT 7
AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
Upcoming Franchise Events & Conferences April 13 - 14, 2019 The Great American Franchise Expo Charlotte, NC www.franexpousa.com
April 27 - 28, 2019 The Franchise Show Expo Donald E. Stephens Convention Center - Chicago, IL www.franchiseshowinfo.com
May 05 - 07, 2019 52nd IFA Legal Symposium Washington, DC www.franevents.org
May 07 - 08, 2019 39th Annual IBA/IFA Joint Conference JW Marriott - Washington, DC www.franchise.org/ibaifa-joint-conference3
May 18 - 19, 2019 The Great American Franchise Expo Atlanta, GA www.franexpousa.com
May 18 - 19, 2019 The Franchise Show 2019 Houston, TX www.franchiseshowinfo.com
May 30 - June 01, 2019 International Franchise Expo The Javits Center - NewYork, NY www.ifeinfo.com
Jun 01- 02, 2019 Franchising & Business Opportunities Expo Brisbane, Australia
June 18 - 20, 2019 2019 Franchise Marketing Leadership Conference InterContinental Buckhead Hotel - Atlanta, GA www.franchisemarketingconference.com
Sep 09 - 12, 2019 Franchise Action Network Annual Meeting Washington, DC
Oct 05 - 06, 2019 The Great American Franchise Expo Dulles Expo Center - Chantilly, VA www.franexpousa.com
8 FRANCHISE CONNECT | MAY-JUN 2019
FranchiseConnect
®
VOLUME 1, NO 1, MAY-JUN 2019 1751 Pinnacle Drive Suite 600 McLean, VA 22102 info@franchiseconnectmag.com www.franchiseconnectmag.com (703) 665-5507 ADMINISTRATION FOUNDER / PUBLISHER
Sitki Kazanci PRESIDENT / CFO
Jackie Harty EDITORIAL MANAGING EDITOR
Elizabeth Adams EDITORS
Sara Jensen David N. Smith Melissa Kazanci Mary McHugh CONTRIBUTING WRITERS In Alphabetical Order by Last Name
Chris Conner Faizun Kamal Freddy O’Pry Jason Power Michael Webster INTERN
Christina Huang DESIGN / PRODUCTION DESIGN
Creative Edge Design Studio COVER ART
Gokhan Kalafat PHOTOGRAPY + VIDEO
Ibrahim Turk PRODUCTION MANAGER
Jennifer T. Gordon SALES / MARKETING (703) 665-5507 info@franchiseconnectmag.com Franchise Connect Magazine, published bi-monthly by the Creative Edge, 1751 Pinnacle Drive, Suite 600, McLean, VA 22102. Application to Mail at Periodical Postage Rates is Pending at Merifield, VA, and addititonal mailing offices. POSTMASTER: Send address changes to Franchise Connect Magazine, 1751 Pinnacle Drive, Suite 600, McLean, VA 22102 Creative Edge and Franchise Connect Magazine are not reponsible for advertisment content and contributers' articles. © 2019 by Creative Edge. All rights reserved.
FROM THE PUBLISHER
D
FRANCHISE CONNECT MAGAZINE:
Bridging Gaps between Investors and Franchisors
Did you know that the franchise industry produces $710 billion towards the total economic output? There are 3,000 different business franchise companies within 300 business categories, and one out of every 12 businesses is a franchised business.
With these stunning numbers, it is easy to see why franchising is a booming industry. However, setting up a franchise system is easier said than done. But that’s what we're here for.
Creative Edge is launching the new Franchise Connect Magazine to bring together franchisors and investors.
A lot of entrepreneurs ask us about how can they bring the right franchisees on board, how can they build a solid franchise infrastructure, and how to reduce the risk of undercapitalization, which is one of the biggest causes behind failed franchises. Similarly, we have been asked by investors where and how to invest.
OUR MAGAZINE GOES DIRECTLY INTO THE HANDS OF POTENTIAL INVESTORS
There is a serious lack of independent trusted franchise-related information, which can lead investors and franchisors to make uninformed decisions with terrible repercussions. Of course, the internet is rife with such information, but there is no way of knowing whether the information is correct or not. Many investors have suffered devastating losses when the companies they believed to be safe bets—experienced, multimilliondollar ventures—just up and vanish the next day without a trace. Sensing this need in the franchise industry, we decided to launch the Franchise Connect Magazine, which aims to bridge the gap between franchise service businesses, franchisors, consultants, commercial real estate companies, and entrepreneurs and capital investors. This is particularly true of international investors, who are interested in investing in the United States but are unable to do so due to lack of information. Their language and cultural barriers are further obstacles in their path to make an informed decision about investing their capital with franchises. The Metropolitan Washington, DC, area is the fastest growing, wealthiest, and recession-proof market in the region. With over $7.5 billion spent by domestic visitors alone in 2018, the DC area is booming with franchising opportunities. We will be attending business and franchise expos. Hard copies of our magazine will be available at multiple outlets, and a digital version will be emailed directly to you. With publishing experience of 35 years, Creative Edge Design Studio is an award-winning independent company, not affiliated with any big group. Your investment in Franchise Connect Magazine is an investment in your business.
SITKI KAZANCI / Founder-Publisher
MAY-JUN 2019 | FRANCHISE CONNECT 9
TOP 10 REASONS to Consider Buying a Franchise By Freddy O’Pry
I
t’s easy to get an impression of the way robots are changing our daily lives: simply think of the self-serve pump next time you stop for gas. Such progress was hard to imagine when gas stations began. Now, even residents in rural counties in the U.S. have access to such robots. That’s just one example of how artificial intelligence affects the way we live. Top tech companies are in a constant race to change the way robotics are implemented in people’s everyday lives – which will lead us to a really exciting future.
your own boss-You call the 01 Beshots!
Do you really like your future being determined by other people? Especially others who may not know nearly as much as you do about the job? Do you really like your future depending on your company terminating your employment at any time? 10 FRANCHISE CONNECT | MAY-JUN 2019
Top tech companies are in a constant race to change the way robotics are implemented in people’s everyday lives – which will lead us to an exciting future.
If the answers are NO, then by becoming a franchisee, you certainly have a proven track record to follow, but you have much more latitude than having a “J-O-B.”
earnings 02 Unlimited potential.
Do you really like others determining, how much money you can earn? Or when and where you must work? Or under what conditions, hours, days, and nitpicking rules and requirements you MUST follow every day, all day? With a franchise, much of those situations are under your own control. Work for yourself smart and hard and YOU, not your employer, benefit greatly from your own efforts.
YOUR OWN schedule 03 Control and flexibility.
What happens when you have important family duties like your kids ball games, outof-town weddings, unexpected funerals? You have to go with your “hat in your hand”
pleading with “Scrooge,” your boss, who has to talk to “Super Scrooge” to see IF you can take off work to attend these important life milestones. If you own your franchised business, YOU determine where and when to go and do. To be sure you must meet the required performance levels, so franchising is not a vacation destination!
tax treatments offer 04 Income some savings to franchisees.
As a business owner, most business-related expenses are able to be deducted from your income BEFORE your income tax bill is calculated. Such expenses as lease payments, telephone, Internet, salaries and commission payments to employees, certain purchases, supplies, repair and maintenance, and utility bills, etc. are tax deductible. Even such things that do not require direct out-of-pocket costs, like depreciation and amortizations, can be deducted from your final tax bills.
START SMART
Pride of 05 ownership.
You own it. Your name is on the business cards, etc. There is a certain amount of respectability, pride, and confidence that comes from being a franchisee of a wellknown brand.
provide jobs 06 You to others.
You’re not seeking a job during downturns in the economy. You will certainly need employees with most franchises. You’re the boss.
in community 07 Involvement activities.
Join the local Chamber of Commerce. Meet with fellow franchisees from time to time. Help credible local organizations meet their needs. Join national trade associations. Sponsor local youth sports activities. Be “somebody” of importance to the community.
Build a legacy for you and 08 your family.
Every day you are building equity in your business, your reputation in the community is growing. Someday your children may join you Involve your family in the franchise now. in the franchised business and may eventually take over the business from you, helping There may be many things even young chilto assure their future financial stability and dren can do to help in the family franchise. happiness. They learn from an early age the values of
09
democracy, of entrepreneurship, of hard work, and of honest integrity, helping them to become self-sufficient, hard-working citizens. The older they become, they can take on more responsible positions in the family franchise business. The family that works together supports each other.
for a potential future 10 Building sale of your franchise.
How much can you sell a “J-O-B” for when you retire? Zero. Nada. Not a single penny. BUT, when you own a successful franchise, the amount that it can bring can be in the millions. How do I know that for sure? Because we sold our two Regional Development Franchises for millions and millions of dollars AFTER earning a wonderful income for years and years! w Freddy O'Pry is owner and president of Franchise Development. He represents over 200 different franchises including Massage Envy Spas. Contact Freddy O'Pry at freddyopry@franchisedevelop ment.com or at (281) 342-7474.
MAY-JUN 2019 | FRANCHISE CONNECT 11
dlapiper.com dlapiper.com
SHOULDER SHOULDER TO SHOULDER. SHOULDER TO SHOULDER. TO SHOULDER.
dlapiper.com
When it comes to our clients and their business issues, we’re in the trenches with them. When they need practical to complicated problems When it comessolutions to our clients and their business that extend the world, we them. are there. We are issues, we’rearound in the trenches with When they a law practical firm that solutions works ourtheir clients wherever need to complicated problems When it comes to ouralongside clients and business and whenever need us. with that extend the world, we them. are there. We are issues, we’rearound inthey the trenches When they aneed law practical firm that solutions works alongside our clients wherever to complicated problems and they need us. we are there. We are that whenever extend around the world, a law firm that works alongside our clients wherever and whenever they need us.
Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545 Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545 Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545
PHOTOGRAPH COURTESY SHUTTERSTOCK
Why Franchising Makes Sense for So Many Women
Many female franchisees opt for semi -absentee-owned franchises. These franchise business models allow for managers to run the day-to-day operations, while the franchisee checks in and spends about 10 to 20 hours per week on the business. Owning a franchise is a great option for women who want Franchising offers a range of ownership models in a range of industries. So if you flexibility and work-life balance. are a professional woman who is tired of By Faizun Kamal of these realities chop away at a woman’s struggling through a corporate career and opportunity for success. wants a job that offers lucrative incomes and limbing the corporate ladder is That’s why many ambitious women are work-life balance, there may be a franchise always hard, but it’s especially tricky opting out of Corporate America and choos- out there for you. for women. Often, they’re considered ing to go the franchise route. Investing in Ready to find your “perfect fit” franchise? w unambitious compared to male peers, a franchise becomes a very effective and because though they work, they’re still the ultimately very fulfilling way to brave the Want to find out about franchises that may be primary caretakers of their families. Some workforce—but this time, on their own terms. the “perfect fit” for you? Email faizun@thefran may have to leave the office at 5 pm to pick Owning a franchise is a great option for chiseconsultingcompany.com. up children from daycare: others can’t attend women who want to work and earn income, 7 pm meetings because they don’t have child- but can’t put in the hours that traditional A graduate of Stanford University, Faizun Kamal is a nationally renowned public care. Many can’t break away from home for jobs demand. Business ownership gives speaker, author, and career strategist. overnight work trips. And for women who women the flexibility to grow at their own As CEO of The Franchise Pros, Faizun took time off to raise their kids, it becomes pace, while working hours that gel with their coaches people nationwide on making the transition from employee to entrepreneur. challenging to get back in the workforce. All personal responsibilities.
C
MAY-JUN 2019 | FRANCHISE CONNECT 13
Amazon’s choice has also enhanced Northern Virginia’s reputation as one of the best sites for corporate headquarters. Northern Virginia has a reputation for enticing several big names, like prompting Nestle’s U.S. headquarters to come to Arlington, Hilton Worldwide to Tysons Corner, and Volkswagen Group of America to Herndon. Similarly, with just Amazon’s presence, the area has become extremely attractive for small and big franchises.
HQ2’S EFFECT ON THE FRANCHISE SECTOR IN THE DC AREA By Sara Jensen
14 FRANCHISE CONNECT | MAY-JUN 2019
PHOTO BY JOSEPH GRUBER / SHUTTERSTOCK
A
mazon is set to create a second headquarters in Crystal City, Virginia, resulting in thousands of new jobs. In recent times, this is the biggest change to hit small and medium enterprises in the area. Amazon announced it expects to hire 25,000 employees in Virginia once the new headquarters is built. The employees will have an average salary of $150,000, which is significantly more than the current median household income of $75,000 in DC. According to the agreement between Amazon and the state of Virginia, Amazon will hire 400 employees in 2019 and another 1,180 employees in 2020. It hopes to meet its target of creating 25,000 jobs by 2030 and 37,850 jobs by 2034. Founded by Jeff Bezos on July 5, 1994, the company started out of Bezos’ garage and now earns hundreds of billions of dollars in revenue each year. Amazon is the largest e-commerce marketplace and cloud computing platform and earned $233 billion just last year, which is up 30% from 2017. Its net income was $10.07 billion, up 232.3% from $3.03 billion in 2017. For its second headquarters, Bezos has chosen the northern Virginia area called National Landing, located in Crystal City. However, the economic impact will not be limited to Arlington County but will expand into Washington DC, and Loudoun,
COVER STORY
MAY-JUN 2019 | FRANCHISE CONNECT 15
ILLUSTRATION BY GOKHAN KALAFAT
and Fairfax counties. strategies of Arlington and Alexandria to The choice of Crystal City for Amazon HQ boost construction near mass-transit routes. cements Northern Virginia’s standing as a One of the area’s major selling points is business magnet and may even change the its proximity to Interstate 395, the Pentagon, landscape of the Washington area into some- and Ronald Reagan National Airport as well thing similar to Silicon Valley. as Washington Dulles International Airport. The e-commerce giant has locked down Three of Amazon’s offices will be located in three buildings in Crystal City and the Penta- a cluster near the Crystal City Metro station. gon City area in Arlington. The latter also has The state of Virginia has said it will grant two large slots of land booked in the name $195 million toward infrastructure projects of Amazon. The selection of the area is a at Crystal City, will make improvements to huge victory for the development and growth Crystal City and Potomac Yard Metro stations,
◗ Jeffrey Preston Bezos (famously known as Jeff Bezos), the founder of one of the most successful e-commerce websites Amazon.com, was born on Sunday, January 12, 1964.
◗ When Jeff Bezos was born, his mother was only a teenager and her marriage to Jeff’s father lasted less than a year. Miguel Bezos, Jeff’s stepfather, married his mother when Jeff was only 5 years old. Miguel adopted Jeff when he got married to his mother and hence became the legal father of Jeff Bezos.
◗ Amazon CEO Jeff Bezos, who is already the richest person in the world, reached a $105 billion net worth.
◗ Bezos graduated from Princeton University in 1986 with degrees in electrical engineering and computer science. ◗ He's building the biggest home in Washington, DC (aside from The White House). The Obamas and Ivanka Trump and Jared Kushner are neighbors.
16 FRANCHISE CONNECT | MAY-JUN 2019
PHOTO BY JOSEPH GRUBER / SHUTTERSTOCK ● ILLUSTRATION BY GOKHAN KALAFAT
ABOUT JEFF BEZOS
JEFF IS OFTEN CALLED A “CHANGE JUNKIE” AS HE BELIEVES IN EVOLVING HIMSELF WITH THE CHANGING TIMES.
create a new pedestrian bridge near Reagan National Airport, and make other commute changes. Arlington County will also set aside about $28 million. The county also said it would help Amazon obtain local, state, and federal approvals for a helipad that the tech giant says it wants in Crystal City. As far as digital infrastructure is concerned, 70% of the world’s Internet traffic flows through Northern Virginia, which hosts over 650 data processing companies, covering over 10 million square feet of land. The physical establishment of Amazon in the area will also result in a boom in the housing market. Currently, a small one-bedroom apartment is rented out at $1,600. With the arrival of Amazon HQ2, however, it is very probable that the price will go up significantly. DC Mayor Muriel E. Bowser has called on regional leaders to quickly start construction of affordable housing — a problem in the area, which will likely be exacerbated as Amazon expands.
Bezos is deeply involved in all the process of the headquarter and attends every single leadership meeting where the project is discussed. Already, the city has planned 4,000 units in preparation for the influx of people in the city once the headquarters is built. The new apartments will provide Amazon employees who relocate from other cities with immediate housing within walking distance from Amazon HQ. Moreover, the immediate neighborhoods host a variety of retailers, hotels, restaurants, and a Whole Foods Market. Maryland Gov. Larry Hogan said he hopes to see other companies move into the region that are part of the e-commerce giant’s supply chain network. If that happens, the region will not just get 25,000 job opportunities through Amazon, but will also generate hundreds if not thousands of other job opportunities as well.
Jay Carney, senior vice president of worldwide corporate affairs at Amazon, said that the e-commerce company has been looking at and considering all the locations carefully, based on 100 different metrics. It finally made the decision to split the project based on how best Amazon would be able to employ the talent it needs. The headquarters was split and placed in two different metropolitan areas, which are not just great places to live but also offer Amazon a huge pool of talent. Bezos is deeply involved in all the process of the headquarters and attends every single leadership meeting where the project is discussed. The decision to implement the second headquarters was a monumental one for Crystal City, which witnessed thousands of lost jobs after defense contractors and agencies left the city during the 2005 Pentagon Defense Base Realignment and Closure Commission (BRAC) process. Amazon’s choice has also enhanced Northern Virginia’s reputation as one of the best sites for corporate headquarters. Similarly, with just Amazon’s presence, the area has become extremely attractive for small and big franchises. Northern Virginia has a reputation for enticing several big names, like prompting Nestle’s U.S. headquarters to come to Arlington, Hilton Worldwide to Tysons Corner, and Volkswagen Group of America to Herndon. The area will also provide a huge opportunity to other franchises as well. Initially 238 locations were first submitted for review to Amazon; however, many experts believe that that the DC area was the preferred site for the e-commerce giant all along, because of Bezos’ deep connections to the area, including his ownership of The Washington Post and a $23 million mansion in the Kalorama neighborhood. It also fits the several criteria Amazon called for in its search, including a robust mass-transit system, easy access to the airport, as well as a huge pool of talent. w
Tracy Gabriel President/Executive Director Crystal City BID
AMAZON’S HQ2 Amazon’s selection of National Landing, the name used to describe the joint site between Arlington and Alexandria, as a new headquarters location is a momentous win for Crystal City and will benefit the business, residential, and retail community of the area and Arlington County as a whole. Amazon’s arrival will advance the implementation of Crystal City’s Sector Plan and the Crystal City Business Improvement District’s (BID) Strategic Plan, accelerating the transformation that is already well under way in Crystal City, Pentagon City and Potomac Yard-Arlington. The resulting boost in demand for commercial office space from Amazon and those companies desiring to locate nearby will provide an important longterm remedy for the county’s historically high vacancy rate. In turn, increased occupancy will deliver additional revenues to county coffers to help restore the desired 50-50 shared tax burden between commercial and residential property that has long supported Arlington’s low tax rate and high-quality schools and services. MAY-JUN 2019 | FRANCHISE CONNECT 17
MEET THE PEOPLE BEHIND THE BRANDS
Military-Based Fitness Franchise By Christina Huang
S
OLDIERFIT is a boot camp-style health and fitness company. It’s the fastest growing franchise in the DC area. We visited their headquarters in Maryland and interviewed the founder and co-owner Danny Farrar. Their motto is “pride, not ego!”
Tell us a little bit about your background. Straight after high school, I joined the military. I was there for 8 years. I spent some time in Iraq. After I got out, my first job was selling gym memberships, but I got fired from that. A lot of people have difficulty transitioning out of the military. I then turned to fitness
18 FRANCHISE CONNECT | MAY-JUN 2019
and martial arts. In 2011, Dave Posin and I opened SOLDIERFIT. We started out with 13 members and 30 classes in one subleased location. We now have 13 gyms, thousands of members, 4 corporate gyms, and 9 franchises. Membership fees mostly finance us. What differentiates SOLDIERFIT from all the other gyms out there? We offer a lot more than just a workout. I like to think of us as a social enterprise. The social interaction is a big part of our program. When you come in, you spend the first few minutes meeting all the other people. When you leave, you spend about 10 minutes again chatting with other members. We are in a society that
craves human interaction. Most people procrastinate when its time to work out, but if you know that Tom and Sara are going to be waiting for you, you are more motivated to show up. We group people up based on their goals. For example, if a bunch of people are planning to run a 5K, we put them together. Similarly, if the goal of a group of women is specifically to lose weight, we put them together. Everybody must wear the same gear that we supply. When you first join, we run you through the machine that gives you your metabolism statistics. We put together a fitness and nutrition plan for you. You track your calories on the “My Fitness Pal” app. I always say, “What gets measured, gets done.” We do body assessments every 30 days. We have nationally trained instructors and 85% to 90% of them started out as members. They have to pass a national certification. We are not the cheapest, but we give a lot more. Every gym has its own nonprofit that it champions. Working out is what we do but not why we do it. We operate under two models. The first program we call FORT. This requires a large space. Here, in Frederick, [MD,] we have almost 18,000 sq. ft. This program requires a
“THE WIDE VARIETY OF FITNESS TRAINING CLASSES AT SOLDIERFIT MEANS MORE WAYS FOR YOU, AS THE FRANCHISE OWNER, TO IMPACT THE BOTTOM LINE!”
“Our motto is ‘pride, not ego!’” SOLDIERFIT is a unique, military-based fitness program with franchises all over the United States. The SOLDIERFIT program is more than a typical physical fitness program; it introduces a new slew of gamechanging fitness activities, including military-style boot camp classes, advanced personal training, a special character-building and fitness program for kids, a functional fitness gym, and much more. fully functioning space. It includes the boot What do you look for in deciding if somebody camp, personal training, and something we will make a good franchisee? call “spec op,” which is where we have spe- The franchise fee is $30k with a 25% discount cial classes focused on the same goal. This for veterans. You are looking at between $124K is more affordable than one-on-one training. and $300K in all. It includes three months The second model we call F.OB. (forward working capital and covers the cost of their operating base) F.O.B is the way we are build-out. We are looking for people who want headed. Here, we just focus on the “bread to be owner-operators and who can think big. and butter.” This is easier to manage than The franchisee dynamic is somewhat weird in a FORT. that the franchisee is not an employee. You What is the typical age group/mix of your members? Between the ages of 25 to 50, with 39 being the sweet spot, is the typical number. In some of our locations, we have up to a 70% female mix. Women do better at being coached than men!
Our members can be broken down into three categories:
are giving them your baby to raise. We don’t want people who are just focused on making money. It can be overwhelming for them at the beginning. They have to be committed and love it. One of my favorite sayings is “No one is coming. It’s up to us.” Running your own business is a big commitment. It’s best if the whole family is committed to it, because you can find yourself getting up at 4 am and not
returning home until late in the day. We are not looking for people who are looking for something they can invest in and just walk away from in a couple of years. One of the things I have learned is that even after you get traction, you will still have to go back and lubricate the machine. You are always engaged and involved in it. It can be difficult to find the right balance between keeping and giving away. I have been to war, and I have been a firefighter. Running a business is also high stress but of a different kind. It stays with you all the time. You have to learn to deal with it. I still don’t feel that we have taken SOLDIERFIT it as far as it can go. w
For more information, visit: www.soldierfit.com
◗ The crème de la crème: These are wealthy educated people. Married in the suburbs: Typically a two◗ kids household with an annual income of $100,000 plus. Single and thriving: These people earn ◗ upwards of $70,000. We run the demographics before we open a place. If there is nothing else in the area, this is not necessarily a good thing. Our greatest success is often where other gyms already exist. If Gold’s Gym has built a 30,000 sq. ft. gym in a particular location that tells us that they can survive there. Typically, members live 4.5 to 7 miles from the location, and attend the gym three times a week. Most of our marketing is done through social media or word of mouth. We are a volume business. On the low end, a gym might have 450 members. On the high end, between 600 and 700 members. MAY-JUN 2019 | FRANCHISE CONNECT 19
Starting a Franchise Journey By Jason Power
B
uying a franchise is a major life event for many people and can be a very intimidating process, but it does not have to be. With proper preparation, and a lot of due diligence, buying a franchise
can be a straightforward and simple process to navigate. The main thing to take note of is not to rush into a franchise purchase and take the time to research the franchise and talk with others who can help along the process. To help with this process, below are a few things to consider:
Have you read the franchise 01 disclosure document?
The franchise disclosure document includes both the Franchise Disclosure Items as well as the franchise agreement. The Items discuss, among other things, any lawsuits the franchisor has been involved in, the initial franchise fee, ongoing fees such as royalties and marketing contributions, an estimate of what the investment range is, a summary of the training curriculum, and how the franchise can be terminated. The franchise agreement is the contract between you and the franchisor and contains all of your obligations and a list of what the franchisor is responsible for during your time as a franchisee.
you negotiated any 02 Have terms?
Many franchisors claim to not negotiate the terms of the franchise agreement. This does not mean that you should not try. After reading through the franchise agreement, it is 20 FRANCHISE CONNECT | MAY-JUN 2019
PHOTOGRAPHS COURTESY SHUTTERSTOCK
LEGAL ADVICE
very clear that the franchisor has most of the control in the relationship; however, it should also be understood that you have the right to ask for things that could benefit you. When you talk with the franchisor, you should discuss how you want to operate the franchise and what your long term goals are. Many times, when these issues are discussed, it leads to changes in the franchise agreement such as a lower renewal fee, no transfer fee in certain situations, a larger territory, etc. With negotiations, the main thing to remember is you will never get something if you do not ask for it.
Do you understand what your 03 obligations are?
Many people buy franchises without understanding what their obligations are. In previous conferences, I have spoken with franchisees of very sophisticated brands who admitted to never reading their franchise agreement. Because these franchisees did not
When buying a franchise don't rush in to the purchase, and be thorough with your research. By doing this, you will be better prepared for the journey ahead.
read their franchise agreements, they have no real understanding of their rights, roles, and obligations or what they can hold the franchisor accountable for. This is a very big mistake and many times leads to lawsuits and tarnished relationships, all of which could be avoided if they had spoken with other franchisees or a franchise attorney before they purchased the franchise.
you spoken with other 04 Have franchisees?
If there are other franchisees available, then you should talk with them. When you talk with other franchisees, you should ask questions such as why they purchased the franchise; what they like or don’t like about the franchisor; and how long it took them to become profitable.
you spoken with a 05 Have franchise attorney?
Most attorneys who have not handled
franchises in the past will kill a franchise sale because they do not understand how franchising works and see the franchise agreement as a completely unfair contract. However, an attorney who focuses on franchising can help you understand how the franchise relationship works and can explain why the franchisor has certain types of control that would otherwise be completely unfair. Remember, when buying a franchise, don't rush in to the purchase, and be thorough with your research. By doing this, you will be better prepared for the journey ahead. w Jason Power is dedicated to the practice of franchise law as a partner at Barber Power Law Group in Charlotte, NC. He has assisted hundreds of franchisees with their due diligence and negotiations. Jason also represents emerging and established franchisors. Contact Power at jason@franchise.law or by calling (980) 202-5679. Visit www.franchise.law.
MAY-JUN 2019 | FRANCHISE CONNECT 21
ILLUSTRATION BY HARU NATSU KOBO
DELEGATING 101:
Because You Can’t Do Everything By Mary McHugh
I
f you are a business owner, you cannot spend your time being the CEO, as well as looking after the budget, marketing efforts, and sweeping your own office. A time will come when you need to delegate tasks to someone else so that you can focus on your core functions. Delegating tasks may seem like giving up control, and some people find this scary. However, it doesn’t have to be.
Assign Tasks to the Right Person
This is a given; you wouldn’t assign a sales task to someone who works in the HR department. However, you also need to consider whether the difficulty level of the task matches the person’s skill set. You don’t want to assign a task to a person with zero experience, and you don’t want to assign a task to a person for whom the task is too easy. People love to be challenged, especially when they feel they are trusted and appreciated. 22 FRANCHISE CONNECT | MAY-JUN 2019
Explain the Task
You don’t want to leave the person to his own devices unless he has worked on a particular task before. Although you shouldn’t micromanage, you need to give clear instructions on what you want to get done. A good idea is to show them how to do something, rather than tell them, as our brain understands things more clearly with visuals cues rather than auditory ones.
Equip Your Employees
Make sure to equip your employees with all the information and tools they need to carry out the task. Let them know where they can find the things they need, how and when they can use it, as well as if there is anything else they need to accelerate their work.
Inspecting the Task
Nobody can work comfortably with their boss breathing down their neck. However, as a business manager, we also need to
ensure the person to whom you delegated the task is completing it. Therefore, request periodic reports so that you know the task is coming along as you expect. Also, if employees know you will check up on them, they will be ready. Delegating tasks does not mean you need to hire a retinue of costly employees. It is a mistake to assume that your part-time employees are only interested in doing menial or non-challenging jobs. You can enrich their job descriptions by incorporating other tasks and incentivizing them along the way. This will also make them feel appreciated, and you will get a person who is also familiar with the day-to-day tasks of your business. w
“DELEGATING TASKS MAY SEEM LIKE GIVING UP CONTROL, AND SOME PEOPLE FIND THIS SCARY. ”
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BROKERAGE | INVESTMENT | PROJECT M ANAGEMENT MAY-JUN 2019 | FRANCHISE CONNECT 23
FRANCHISES
By Freddy O’Pry
H
ere are brief descriptions of each level of franchise types available for qualified franchisee candidates which you need to consider before deciding upon a level to invest in any franchise:
SINGLE-UNIT FRANCHISES
PHOTOGRAPHS COURTESY SHUTTERSTOCK
4
Basic Types of
you need to consider before deciding upon a level in which to invest in any franchise.
of this type. Even if it is a semi-absentee owned business, the franchisee will want to be present at the business and be as hands-on as possible. Typical liquid capital required: $75,000 to $175,000 initial out-of-pocket investment required on a total investment of around $350,000 to $750,000. Some franchises will cost less, many more.
A franchisee has the right to operate a single franchise unit. Most franchisees enter the MULTI-UNIT FRANCHISES world of franchising by owning one unit. If the franchisee acquires more than one unit This is a great way to get in and understand of the franchise, usually at reduced franchise the system before taking on more units and fees, it is known as a multi-unit situation. responsibility. The risk is lower because the franchisee can Territory: The franchisee may have a take advantage of the economies-of-scale small radius of exclusive territory to oper- theory. By spreading costs across multi-units, ate within. If it is a retail store, the area certain locations may become more successof exclusivity may be a two or three mile ful, pulling the weight of the others. A good radius around the store, for example. If it is sign of the health of the franchise is if many a home-based business the area may consist of the franchisees are multi-unit owners! of a few specific zip codes. Territory: There is usually no exact exclusive Level of participation: The franchisee is territory where all the franchises must be set very involved with almost all operations up. The franchisee may have one unit in one 24 FRANCHISE CONNECT | MAY-JUN 2019
part of town with a surrounding radius of exclusivity, and another unit in another part of town 15 miles away or even in another county with its exclusive radius of operation. Level of participation: The franchisee is less involved with each of the unit's operations, but will be managing multiple operations and will need to have some level of supervision in each unit. If many units are opened, a general manager and additional administrative and training staff may be needed. The franchisee is more of an overall general manager when many units are involved. Typical liquid capital required: $50,000 to $70,000 initial out-of-pocket capital is required to take care of most of each initial franchise fee depending, of course, on the amount of each franchise fee and how many franchise licenses are being acquired. The rest of the investment is usually financed before each unit is opened. Third party financing options are available whether they are offered by the franchisor or not.
TAKEAWAYS
AREA DEVELOPMENT FRANCHISES This license usually grants the franchisee the right to open a specified number of franchises in a given area. There is usually a production schedule where the franchisee must open a certain number of franchises during a certain period. The franchisee has an exclusive area or territory where no other franchisees can be allowed to open a franchise. Territory: The franchisee maintains an exclusive geographic territory as long as the opening schedule is maintained. The territories range from a small city to parts or all of a larger city. Level of participation: The franchisee will be very involved in the beginning stages of the first location to make sure it is successful. The franchisee will also need to be looking for qualified real estate to open the next few locations. Once several locations are open, the franchisee will need additional assistance to manage several units. Typical liquid capital required: $300,000 to $600,000 initially to secure the area, pay all franchise fees and have additional start-up capital. The franchisee will then need to be able to finance the rest of the start-up costs for each of the franchises, as they open.
MASTER FRANCHISES & REGIONAL DEVELOPER OR AREA REPRESENTATIVES A master franchisee, sometimes called a regional developer, has the rights to a larger area than that of an area developer. The master franchisee, in addition to opening franchises at a much reduced franchise fee and royalty, can also sell unit franchises, multi-unit franchises, and area development franchises and make a nice return on the sale. The master usually receives a part of the royalty and franchise fee paid by each franchisee. There may be additional income available from distribution of products through the franchisees in the area and possibly even some real estate interest. The master becomes somewhat of a subfranchisor for the area, without having
experienced all the trial and error the original franchisor did. The master franchisee will usually want to open and operate at least one unit (pilot location) for income and use as a training center. Master franchises are rare; most franchisors do not offer them. However, when they are available, they usually sell quickly. The income available from a master franchise is extremely lucrative, and the initial investment is low compared to the type of value you can build in the master franchise area. The flexibility is also the greatest at this level. CAUTION: Beware of the legal requirements of becoming an actual, legal master franchisee. Master franchisees MAY be required to generate their own master franchise disclosure document which makes the master franchisee take on the responsibility of MUCH MORE legal responsibility than that of an area representative or certainly, a regional developer normally does! Consider becoming an area representative or a regional franchise developer BEFORE taking on the legal responsibilities of a true master franchisee. Territory: Usually is a large metropolitan area or area of dominant influence, an entire state, region, or even country. It is an exclusive area and will remain exclusive as long as the master franchisee meets the development schedule of franchises in the territory.
Level or participation: The master franchisee will usually set up and operate at least one unit and use a manager to manage it while working on selling other “sub-franchises” and assisting them in opening and operating properly. Very rarely is a master franchisee “hands on” in a unit franchise. They tend to spend more of their time operating like a business consultant or coach to their franchisees to help them become successful. Typical liquid capital required: $400,000 to $750,000 is needed to acquire the territory and for initial liquid capital to start the area. Financing will be secured for the start-up of the unit franchise. So, those are the four levels of franchising – each of which has its place and rewards. Our network of franchise development professionals and business experts are there for you every step of the way to help you achieve the business goals you’ve set out to accomplish. w Call Freddy O’Pry with Franchise Development today at (281) 342-7474 or email him at freddyopry@franchisedevelopment.com. You’ll be glad you did. Freddy O'Pry is owner and president of Franchise Development. He represents over 200 different franchises including Massage Envy Spas. Contact Freddy O’Pry at freddyopry@franchisedevelop ment.com or at (281) 342-7474
MAY-JUN 2019 | FRANCHISE CONNECT 25
for Successful Franchisors, like the United Franchise Group By Michael Webster
F
or the most part, successful franchisers have great shows and collect a lot of qualified leads. How do they do it? Here is what Ray Titus of The United Franchise Group told us.
1. They meet people that have paid to attend the trade show, e.g., the Franchise Expo. They meet all the people. 2. They qualify the attendees for interest in their brand. 3. If qualified, they ask for personal information, that can easily be handed over, a
business card or a scanned badge. In return, they give them some valuable information about their franchise opportunity. 4. They explain what will happen next and promise to get back to them. They keep this promise. 5. In the next 2-3 weeks they follow through, staying in territory. They get back to everyone and either meet them in person or on the phone. And they know, if the candidate has talent and capital, and is ready to buy, the sales cycle will still be 90-120 days,which they don't rush to a happy ending. They have patience, grit, and faith in their enduring franchise sales process.
“THEY DON'T RUSH TO A HAPPY ENDING. THEY HAVE PATIENCE, GRIT, AND FAITH IN THEIR ENDURING FRANCHISE SALES PROCESS."
26 FRANCHISE CONNECT | MAY-JUN 2019
PHOTOGRAPH COURTESY SHUTTERSTOCK
WHAT WORKS AT A TRADE SHOW
NETWORKING
What Successful Franchisors
1. They don't invite someone to a "discovery day" on the expo floor. 2. They don't ask them to fill out a long application form. 3. They don't spend more than a few important minutes with each person. Can every franchisor do this? Have a good show and collect better leads from the show? Sure, if they have a team that can stay “in territory” for the 2 to 3 weeks after the Expo. They reckon that this is one of the keys to their success. But, what about smaller systems that cannot afford to stay “in territory” for several weeks? Well, this is where LinkedIn shows its power -- you can follow up with your prospects from the comfort of your home office, qualify candidates, and get more franchise sales appointments. Anyone can do this -- even with a low budget. As long as you are willing to do the work. Let's get started.
DON'T DO at a Trade Show
LinkedIn as the Never-Ending Franchise Expo
I
f someone is open to a new business opportunity, they are likely to be on LinkedIn. They may not be active daily, but their profile is there for everyone, including you, to read. Your job is to connect with them and get them off of LinkedIn and onto a scheduled call, webinar, or newsletter. (Don't leave this important job to an automated tool or your website; it simply won't work.)
HOW DO YOU DO THIS? 1. Create a list of people or profiles that you want to look at. 2. Create a daily routine where you look at 100 - 300 profiles, and check their recent activity. (This should take no more than 60 minutes of your time.) 3. Start a conversation, based on their profile and activity. Ask them to connect. If they won't connect, they aren't interested in doing business with you, yet. (See no. 5.) 4. Have a giveaway: a brochure, a white paper, an ebook, or a video to give them. 5. After the conversation has started in LinkedIn, ask if you could send them the brochure, white paper, ebook, or video. If they accept, follow and ask for the telephone conversation. Continue with 1-5 until your list is complete, and then start all over again. In next to no time at all, you will be booking sales calls and making many more franchise sales.
Build up your franchise’s organic reach on LinkedIn, and then take advantage of LinkedIn's ability to deliver your message to the right person and at the right time by sponsoring your messaging. An experienced community manager on LinkedIn can make that happen for your company -- creating your branded community. We have been building community on LinkedIn since 2010, and we’ll show you the way to get your franchise community going. Micheal Webster can be contacted at www.franchise-info.ca.
MAY-JUN 2019 | FRANCHISE CONNECT 27
When Should I FRANCHISE MY BUSINESS
?
In general, the concept is to sell your idea, brand, and systems to a third party who would like to open their own business with your guidance and tutelage. By Chris Conner
PHOTOGRAPH COURTESY SHUTTERSTOCK
A
28 FRANCHISE CONNECT | MAY-JUN 2019
s an entrepreneur, it's sometimes puzzling when you see other brands in businesses that relate to your own that are able to somewhat effortlessly open locations in new markets and scale their model across the country. It can certainly be a point of frustration for me when sometimes I feel like I can't even get a simple task organized by staff members or manage basic elements of managing the day to day business. Well, the first element that should be evaluated is what is your growth strategy? If you are expanding organically, opening a location with your own capital and staffing it with your own employees, this generally is a slower and more time-consuming expansion model. Not that there is anything wrong with it, but the way many brands have expanded quickly is through partnerships or joint ventures and franchise development. Ultimately, the reason many business owners have chosen the franchise distribution channel is that a franchisee is not granted any ownership in the core business and the ownership of the core business is still kept intact.
So how does the franchise model work? In general, the concept is to sell your idea, brand, and systems to a third party who would like to open their own business with
EXPERT ADVICE
your guidance and tutelage. A franchisee is typically someone who has not been in business for themselves before, and the idea of having someone's guidance and direction in this new endeavor is very appealing. The franchisee opens their business as a completely separate entity. The franchisor maintains 100% ownership of the corporate business, and the franchisee owns 100% of their own business. The entities are tied together through the franchise agreement. Franchisees pay a fee for the rights to the franchise system and brand, typically $30,000 - $50,000 to initiate the franchise agreement. Once it is open, the franchised business must follow the business system, brand requirements, and overall methodology as described by the franchisor. Franchisees then pay an ongoing royalty and marketing fund which is generally a percentage of gross sales paid either weekly or monthly for the life of the franchise agreement. Franchisees are also required to purchase products and supplies from the Franchisor if that is part of the franchise system offer. The beauty of the franchise model is that the franchisor benefits by having owneroperated locations open up in new markets. This is largely how so many of these brands are effective in scaling quickly: the franchisee takes on the local operation responsibilities. Having an on-site owner is always going to allow for more efficient unit openings when compared to hiring staff and managers for a new market. In addition, the franchisee is responsible for the investment in that new location. Take Orange Theory, for example, the brand that in only six years has been able to develop over 1,000 locations. The individual unit can be as much as a $400,000 investment in build out, signage, inventory, equipment, etc. If these locations had been opened as company-owned fitness studios, the cost alone would have been insurmountable, but franchisees have allowed for the needed infusion of capital to expand quickly. The combination of human and financial capital being drawn into a brand allows systems to grow quickly and achieve a speed of growth that exceeds any other expansion vehicle.
So when is the right time to consider the franchise expansion model as a system for growth? The answer isn't always as clear cut as one might hope. There are so many examples of franchise systems which have broken the theoretical ideas of what constitutes critical elements for a brand to be ready to franchise. Brands such as Tough Mudder (100+ Franchises), Mahana Poke (20+ Franchises), BungoBox (50+ Franchises) and others franchised without having a corporate location in operation at all. While certainly not ideal, with the right brand, the right industry segment, and the right leadership, even this can be a possibility. More realistically, you should have a strong corporate prototype in operation at the time you offer the franchise system. A location or business model that shows well, presents confidently, and has the right financial model in place proves that the concept is a valuable franchise offering. In most cases, we recommend three years of operating experience with the business model being franchised. Having this track record allows you to present the brand and business model showing people a history of performance and
“THE BEAUTY OF THE FRANCHISE MODEL IS THAT THE FRANCHISOR BENEFITS BY HAVING OWNEROPERATED LOCATIONS OPEN UP IN NEW MARKETS"
financial success. The brand should be well defined and have a professional presentation in place. The marketing collateral, website, social media presence, logos, color schemes, and all elements of the brand should be figured out as a franchisee will expect this when they invest in a franchise system. You should have great systems and operations processes intact to be able to teach franchisees how to operate the business and be successful. Franchise marketing systems should be part of your offering which would help franchisees implement locally to generate business and shorten the timeline from opening to return on investment. Whether you feel you are ready, or just have questions about whether your business might be ready, Franchise Marketing Systems would love to hear from you. The franchise model is, in a way, a strategy that can be used in almost any business model or industry segment, but there are aspects of your model you should make sure to have in place and understand before undertaking the franchise expansion model. For more information on franchising, contact us at www. FMSFranchise.com w Chris Conner started his career in franchising in 2002 working for a franchise consulting firm in Chicago. He founded Franchise Marketing Systems in 2009 after seeing a need for full service franchise development services for new and start-up brands. Today, Conner's team has expanded to 27 consultants between the U.S. and Canada and has worked with over 200 brands to support successful franchise development strategies. For more information on Chris Conner or Franchise Marketing Systems, visit the website at www.FMSFranchise.com
MAY-JUN 2019 | FRANCHISE CONNECT 29
There are ways to develop a positive mindset. Read on to find out how.
By Melissa Kazanci
Pessimists, on the other hand, blame themselves when things don’t go their way. ost of us have been told to “look They have self-deprecating thoughts about on the bright side” whenever we their lack of skills and worth and get dejected, get caught in a tangle. Although even when tackling small challenges. This this phrase may sound a bit cli- way, they become afraid of trying again and chéd, positive thinking has a huge impact on facing new risks. They start thinking that your health, well being, social interactions positive events in their life were just acciand even work. dents or coincidental and have nothing to However, staying positive all the time is do with their abilities. easier said than done. These days, a state of In this way, they create a path for themconstant stress has become the norm for most selves that is self-fulfilling and leads to worse people, and there are some circumstances outcomes. that make coping with stress even harder. However, there are various benefits to a Perception of Events positive mindset. The main difference between an optimist and a pessimist is their perception of events. It is Benefits of Optimism important to understand that positive thinkResearch shows that just thinking positively ing can impact your stress levels as well as can have a huge impact on a person. People negative thinking. who remain optimistic through trying times Negative events become much less worhave been observed to have less stress, risome when you believe they happened better health, more productivity, and stron- because of external circumstances and you ger relationships. This is because optimistic are not at fault. Hence, they are less likely people are not afraid of taking risks. They to occur again. In the same vein, when an also believe that any failure was because of optimist experiences a positive event, it unavoidable circumstances and they need to reaffirms their belief that they can control try again. This mentality alone makes them their own fate and the positivity in their life less upset than others and more inclined to is a prelude to more positive experiences succeed in the future. to come.
M
30 FRANCHISE CONNECT | MAY-JUN 2019
How to Gain a Positive Thinking Mindset
Luckily, you can develop positive thinking and optimism. Here’s how: Take an Optimism Self Test: Most pessimists believe they are optimists. However, positive thinkers are defined by specific criteria. With this test, you can understand where you lie in the pessimist-optimist spectrum and will understand what needs to be changed. Mediate: Meditating clears negative energy, cleanses the body of harmful toxins, and rejuvenates the mind. With enough meditation, you can change the way you see the world. Be Thankful: If you make small and frequent efforts to be thankful, you will become more content with all that you have available to you. Before going to sleep, list everything that you were grateful for that day. Over time, your list will become more exhaustive and you will feel blessed. Take Some ‘Me Time’: Instead of placing importance in material things, focus on what makes your soul happy. Take some time out to focus on your favorite hobbies, rather than sitting in front of the news. If you are unhappy at your job, take action. We often forget that all that most of us are getting out of our jobs is financial gain. Take the time to enjoy being yourself to reduce stress and bring in positivity. Instead of beating yourself up when things go wrong, say to yourself that you can handle it or you will endure this. If you smile in the face of unhappiness, good things will follow. w
PHOTO BY BRUCE MARS
The Power of Positive Thinking
Because of this very different way of thinking and consequently behaving, positive thinkers experience more success in life, which can lead to fewer stress-inducing situations.
MAY-JUN 2019 | FRANCHISE CONNECT 31
Does Your Franchise Business your practices Need a Makeover? Tweak and branding to stay 7 QUESTIONS TO FIND OUT By Sara Jensen
I
f you have the money to invest and an ambition to build a future in business, franchises are a great way to go. However, your franchise can be successful only if it is fresh, innovative, up to date, and interesting. As competition in almost every market is rapidly increasing, most franchises require rebranding every 5-10 years. Here are a few things to consider if you want to find out if your franchise needs a makeover.
01
Is there a gap in your franchise’s brand equity?
Your franchise may have a gap in brand equity if it is promising one thing but delivering something else entirely. Gaps in brand equity also develop if your franchise’s message says one thing, but the brand’s marketing tools, 32 FRANCHISE CONNECT | MAY-JUN 2019
current and up to date.
including its website, email communications, and online ads, convey a different voice. This kind of ambiguity can confuse your customers, and these conflicting feelings can ruin your relationship. If you think your franchise is giving out conflicting messages, it is time to give it a makeover.
Is your franchise meeting 02 your customers’ needs?
Over the years, as you add new products and services, you need to ensure that they fulfill the customer’s needs. You can do that by getting customers’ feedback. By researching what your customers need, your franchise can formulate new ways to fulfill those needs and exceed their expectations. Once you understand your customer’s concerns, you need to devise systematic ways to improve your services, which would require rebranding.
Does your franchise need to 03 appeal to a niche market?
Building a successful franchise comes hand in hand with opening yourself up to opportunities. Say, you realized that your beauty franchise works well with beauticians and you’d like to reach more of them. That means, your brand and your message need to adjust
PHOTOGRAPHS COURTESY SHUTTERSTOCK
DESIGN
themselves to emphasize the needs of the beauty salons. Hence your marketing efforts will need to change along with them.
the market growing but your 04 Isfranchise’s market share isn’t?
If other businesses in your industry are surging ahead but you are scraping the bottom, this may be a signal that your current marketing strategy isn’t effective. For that, you need to take into account your competition’s message and tactics. What are they doing that is keeping them at the top of the game? You can take inspiration from them but should not employ the very same strategy. Nobody likes a copycat and that unique space has already been filled by your competition.
logo and other brand standards to match the current trends. Consider adapting your brand rather than redoing it from scratch.
your company commit a 06 Did major faux pas?
Sometimes, even big brands commit such huge errors that cast doubt on their integrity. Jack in the Box, a fast-food restaurant experienced a 40 percent loss when four people died, and hundreds became ill after eating at its restaurant. Rather than remain in denial, the company accepted its mistake, fixed the problem, and came back swinging with a makeover strategy. The result was that its sales increased many times over.
your franchise’ profits 07 Are booming?
When business is booming, many company’s adopt the principle of “if it ain’t broke, don’t fix it.” However, giving your franchise a fresh new look during this time cannot just help you sustain your profit but even hasten your franchise toward the next growth phase. A makeover does not mean rebranding from scratch but rather giving your franchise a few tweaks based on your understanding of a few key elements. This can help your business innovate and in turn set you apart from the competition. w
Is your franchise’s image 05 outdated?
With technology evolving ever so quickly, franchises need to update their image more and more. If your website’s images, video, and responsiveness look like they are from the 20th century, it will do you no favors. With that in mind, you need to redo your franchise’s website, and if needed, update your MAY-JUN 2019 | FRANCHISE CONNECT 33
How Do You Recruit and Select
By David N. Smith
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killed and capable salespeople are a critical asset to any given company and odds are to your as well. Your sales team has the power to bring your company to a new low or take it to unprecedented heights. The only way you can gather a wonderful sales team is to get as much data as you can about your organization’s goal and match it to your candidate. Here's how: Research Company Goals: Your sales team’s efforts should align with your company’s objectives. Therefore, you need to first find out what your business’ goals are. Once those are determined, you can use them to outline a job profile for the ideal candidate. Your focus should always be on surpassing company goals. What Drives Salespeople: Although money is an important motivation for an employee, it is not everything. Find out what motivates high-performing salespeople, and help them achieve job satisfaction. Figure out what kind of incentives they love, and then devise a compensation plan that not only rewards them monetarily but also provides them with respect, acknowledgment, and status. Network: To find the right kind of people, you need to create a wide network. Although you should definitely place an advertisement in a newspaper, some of the best sources to 34 FRANCHISE CONNECT | MAY-JUN 2019
get skilled talent is through social media platforms, like Facebook and particularly, LinkedIn. Also, go to various forums and job boards where people are talking about the your company's industry. Screen Out Less-Qualified People: Once you start getting resumes, you need to identify the best candidates from the lot and target your recruitment efforts toward them. For that, you need to employ a comprehensive screening process that will filter out less-skilled candidates and let pass only promising individuals. Give candidates a phone call, and briefly conduct an interview. The interviews should be based on the skill set you want your salesperson to have. After an initial interview, invite the applicant to take a test that can help the company gauge their practical skills. Create a team of evaluators so that you can have multiple perspectives to assess a candidate’s ability. Whatever steps you take, always check whether your candidate’s data meet the requirements of the role and are in line with the company’s goals. Continued Education: Once you have hired the candidate you believe best suits the
objective of your company, you need to keep training them so that they become knowledgeable about the industry’s newest trends. Retain your best salesperson by giving them periodic surveys that ask them what skills they would like to improve. Pay for mentorship and training programs and reward accomplishments by sponsoring sales courses and trips to conferences. Salespeople who are goal-focused will welcome every chance to learn something new, and this will benefit your company as well. Keep Your Top Sales Team Happy: Once you have a topnotch sales team in place, you need to make sure that they do not have cause to leave your company. Make sure your new team feels welcome by onboarding them and creating a good socializing plan. This can also be an opportunity to fill in your sales team’s knowledge gap and show them how much they can achieve through their new roles.
“TO GET THE BEST SALES TEAM, YOU NEED TO BETTER ALIGN YOUR ORGANIZATIONAL GOALS WITH THE CANDIDATE’S SKILL SET. HERE’S HOW.”
With some careful research and planning, you can set up a top-talent sales team that would benefit your company for years. w
PHOTOGRAPH COURTESY SHUTTERSTOCK
THE BEST SALES PEOPLE?
www.roqos.com
COMPANY PROFILE
Own Your Own Explosive Health and Medical Support Business Opportunities like this don’t come around very often but when they do, those who recognize the trend and act quickly are the ones who reap the benefits for a lifetime.
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his is the first time ever in the trillion-dollar health and wellness industry that a revolutionary franchise like this has ever been offered. We have collaborated with the best minds in the world of franchising and combined it with the lucrative and in-demand health and wellness services industry to form a dynamic franchise opportunity so powerful you’ll be wondering why no one has done this before. Combining recent technological advances, with ideal market conditions make the timing ideal for this winning franchise opportunity. The public is finding it increasingly difficult to get quality health care at an affordable price. Medical professionals are struggling like never before to make ends meet. The RX2Live franchise provides an exciting solution to these growing problems so everyone wins. Our proprietary programs are helping doctors double and even triple the net income of their practices without increasing the size of their staff, adding new patients and with little or no upfront investment.
Our franchisees provide services in three vertical markets that are in huge demand today: 1. MEDICAL SUPPORT SERVICES
Behavioral Health Screenings RX2Live has an innovative tool that allows doctors to easily and effectively conduct mental health screenings right from their office. A true turnkey system that is automated, customized and provides critical information about a patient’s overall health.
DNA Testing Our premier service that reveals a person’s genetic makeup which allows health care professionals to accurately prescribe a program for diet, exercise and nutritional supplementation. We call it our Customized Roadmap to Wellness.
36 FRANCHISE CONNECT | MAY-JUN 2019
COMPANY PROFILE
Nutritional Supplements Analyzing DNA test results allow doctors to design a supplement program to optimize the health of the patient. RX2Live stores and automatically ships product to the patient monthly while the health care professional collects a residual on all orders. Weight Loss System The most effective, safe, rapid, natural weight loss system ever developed. Gets the weight off and keeps it off. Chronic Care Management (CCM) Using our system and proprietary software, doctors receive cash reimbursement from Medicare of up to $20 per patient every month. This is done with no upfront investment and once patients are enrolled, doctors can start billing immediately for a service we provide. Thermal Imaging Allows health care professionals to quickly and easily offer affordable Thermal Imaging Services right from their own office. Using a special camera, patients can be scanned quickly and painlessly by a trained assistant to determine potential problem areas. The scan graphically illustrates potential problem areas in the body. This is an immediate revenue source for health professionals.
2. SENIOR WELLNESS
With an increasing population of baby boomer retirees, Senior Wellness programs are already in big demand and will continue to grow in the coming years. The RX2Live Senior Wellness program allows
health care providers to follow a comprehensive support system designed to improve attitudes, live longer, happier, and healthier lives. We promote an enhanced quality of life for seniors by improving cardiovascular function, strength, flexibility, balance, endurance, intellectual stimulation, diet, and education programs. Patients are simply referred to RX2Live and we take care of the rest.
3. WORKPLACE WELLNESS
This is one of the fastest growing and most popular segments in healthcare services today. A comprehensive analysis of 42 published studies of worksite health programs showed that companies including ‘self-insured employers’ that implemented an effective wellness program realized significant cost reductions and financial gains.
The RX2Live franchise offers an outstanding return on investment for the franchisee and
fills a critical need in the marketplace. You are in the right place at the right time to
position yourself in a unique franchise that
is poised for explosive growth.
Judy Cole (757) 323-3798 jcole@rx2live.com http://virginiadc.rx2live.com MAY-JUN 2019 | FRANCHISE CONNECT 37
COMPANY PROFILE
Verity Commercial – Your Trusted Advisors Transforming your commercial real estate needs into a strategic advantage WHAT WE DO
Verity Commercial is a commercial real estate advisory and investment company located in Reston, VA. We bring extensive experience in brokerage, project management, and investment services. Verity was founded on the simple premise that we want to change the way people think and act about real estate. Verity enables business owners and executives to transform real estate from a necessary business expense into a strategic business advantage. Brokerage / Advisory Traditionally commercial real estate is viewed as a transaction that is either a necessary expense to be minimized, or as a direct investment on the part of an individual or a group. Verity works with businesses to transform their space needs into a strategic advantage that positively impacts their bottom line. Project Management We work on some of the most technically challenging projects in the Washington, DC metro area. Our core industries include data center, life science, healthcare, office, and manufacturing. Verity works as an integrated extension of our client’s team by defining, controlling, and managing all aspects of design and construction while keeping the ownership fully informed of project status in terms of scope, budget, and schedule. Our holistic approach integrates real estate, finance, and business strategy into the design and construction process, thereby aligning objectives and simplifying complexity. Investment Our constant comprehensive surveillance of the commercial real estate market and our long-standing relationships
with key players allow us to uncover promising properties ahead of the competition. We leverage our day-to-day service business to identify off market assets with limited competition to create opportunities for our investors.
SERVICES
Our services enable clients to transform real estate from an expense to be minimized into a strategic advantage, ready to make a meaningful impact on their overall business performance. • Tenant/Buyer Representation • Landlord/Owner Representation • Investment and Advisory • Acquisition and Development • Project Management • Construction/Development • Fee Development Verity was recognized by Inc. 5000 two years in a row as one of the Fastest Growing Companies in America and received the Virginia’s Fantastic 50 Award as one of the 50 Fastest Growing Companies in Virginia.
VERITY COMMERCIAL, LLC 1821 Michael Faraday Drive Suite 208 Reston, VA 20190
38 FRANCHISE CONNECT | MAY-JUN 2019
(703) 435-4007 info@veritycommercial.com www.veritycommercial.com
COMPANY PROFILE
ITEK Construction & Consulting Full-Service Construction
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TEK Construction is a full service construction company, located in Herndon Virginia. Established in 1994 with a clear strategy of continuing growth, as a general contractor, ITEK Construction, Inc. has built a solid reputation of stability and exceptional client services. Our quality and satisfactory services are the reason why a large percentage of our business is with repeat clients who place their trust in us. We are committed to providing the necessary resources to complete the project on time and within budget despite the many challenges that are encountered. We manage all aspects of the commercial construction process. Our talented and loyal staff is the core of our success. Our team has broad skills and experience in construction estimating, management, and project development. ITEK believes that every client should enjoy a finished project with their expectations surpassed. The owners are integrated in the construction process. We continue to be recognized for our top-notch construction workmanship, superior commercial construction services to our clients, highest level of safety standards and contributions to our community. ITEK has been exceeding the established goals in almost every instance. Pursuing satisfaction of our clients in the construction industry, we tackle each challenge with safe, reliable and innovative solutions.
We believe that the highest quality work and customer satisfaction result from adherence to these values. SKILLS & KNOWLEDGE We approach every project with one goal in mind; to exceed client’s expectations. We are able to achieve this goal because we hire the finest talent, manage every detail, imagine the unknown and articulate it for others, translate the new ideas into concrete forms and set one of the highest quality standards in the commercial construction industry. APPROACH Organizations demand fast and efficient projects that do not interrupt their business operations. At ITEK, project success is determined early on, sometimes even before actual work begins. We continually seek alternatives that will reduce the cost and duration of each project, while maintaining clean, safe and unobtrusive construction sites. We seek to understand the foundations of our clients’ criteria for decision making.
CORE VALUES We believe that fostering relationships, constant pursuit of excellence, community responsibility and ethical behavior yield the highest quality of work. Project success is determined by understanding our clients needs, business objectives, and even their competitive markets, in order to accurately define their real project needs and constraints.
ITEK CONSTRUCTION INC. 627 Carlisle Drive Herndon, VA 20170
(703) 261-6663 oyazgan@itekconstruction.com www.itekconstruction.com
MAY-JUN 2019 | FRANCHISE CONNECT 39
COMPANY PROFILE
The Great Greek Mediterranean Grill Franchise Opportunity Delicious and Healthy Mediterranean Cuisine
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onsumers across the country are seeking delicious, new, healthy options when dining out. New research confirms Mediterranean food is the big winner with diners both when it comes to onetime trial and for eating frequently.* Mediterranean food features big, bold flavors and healthy ingredients that make it delicious to enjoy. The American Heart Association, famous TV doctors, and chefs everywhere have promoted the Mediterranean diet - full of olive oil, whole grains, lean proteins, tomatoes, fresh vegetables and spices like cardamom, mint and sumac - as the most healthful way to eat. Add to that, the ease of dining at The Great Greek’s attractive fast-casual locations and you have a highly sought-after destination for diners. Those customers keep coming back and they are prompting accolades and award recognition. In 2017, The Great Greek was the Gold medal winner of the Best New Restaurant and Best Family Friendly Restaurant awards, and was also recognized with awards for Best Mediterranean and Best Power Lunch. The popularity of our fresh, made-from-scratch food, the healthy options, the dining experience, and the industry recognition are all ingredients in our recipe for success.
THE GREAT GREEK FAST-CASUAL DIFFERENCE: ● Our recipes are authentic third-generation ● Greek family recipes ● Our meals and desserts are all made from scratch with fresh, whole ingredients ● Our restaurants have received a variety of awards for their delicious food options and family-friendly atmosphere ● Greek/Mediterranean cuisine is highly sought after because of its bold flavors and healthy options ● Simply. Delicious. Greek.
THE GREAT GREEK MEDITERRANEAN GRILL 2121 Vista Parkway West Palm Beach, FL 33411
40 FRANCHISE CONNECT | MAY-JUN 2019
(561) 868-6368 brokers@ufgcorp.com www.thegreatgreekgrillfranchise.com
COMPANY PROFILE
Savi Provisions franchisee a neighborhood destination selling locally sourced organic foods, wines and spirits
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he Savi Provisions concept is a high-end boutique grocery operation that offers a robust selection of natural food and drinks. Currently, the six locations in Atlanta, GA have been selected in markets where the current customer demographic is in line with our territory guidelines. Franchisees will mimic this environment and will look for locations ranging from 2,000 to 6,000 square feet (depending on the model). Savi Provisions is a neighborhood destination that markets locally sourced gourmet and organic foods, fine wines and spirits, with a generous environment to sample and celebrate the fruits of everyone’s labors. As an integral part of the neighborhood, an advocate for local sourcing and an enthusiast for the nostalgic purveyor, Savi Provisions has multiple locations in Buckhead, Brookhaven, Inman Park, Midtown and Decatur, GA. Since its inception in 2009, Savi Provisions has developed and implemented a model that is based upon a flexible growth strategy. Founded by entrepreneur, developer, and investor, Paul Nair, Savi Provisions revisits the role of the original purveyors who built generational relationships with farmers, vineyards and distilleries to serve their local communities. They put out a shingle, sourced the best organic fruits and vegetables, purchased the finest wine and spirits and invited neighbors to join them around the table to celebrate that bounty.
https://franchiseconduit.com/franchise/savi-provisions-franchise/
SAVI PROVISIONS 4080 McGinnis Ferry Rd # 1208 Alpharetta, GA 30005
(800) 610-0292 pnair@nairindustries.com www.saviprovisions.com
MAY-JUN 2019 | FRANCHISE CONNECT 41
COMPANY PROFILE
The Original & Most Trusted Mosquito Eliminator Take Back Your Backyard!
The Pioneer Mosquito Control Franchise
Mosquito Squad is proud to be North America’s first and most-trusted choice to eliminate mosquitoes, ticks and the diseases they can bring to families and communities. We are the leading tick and mosquito control franchise with the largest footprint and the largest client base in the mosquito elimination category. No one has eliminated more mosquitoes and ticks – and it’s not even close! Our founders are the industry pioneers and created many of the programs utilized by the entire industry category, including our competitors.
Franchise Training and Support to Help You Succeed
We created the category of mosquito and tick elimination and literally wrote the book on how to do it and do it well. We pioneered the processes and technology used by the industry. Every day we continue to refine our systems to maximize your expertise and optimize your chances of reaching and exceeding your goals for the business.
Recurring Revenue Streams
Imagine starting each year of business with a base of existing clients ready to have your service again! That’s what you get with The Squad. Each year, our Mosquito Squad locations go through a renewal process with existing clients, providing the clients with the peace of mind that their mosquito and tick control needs are automatically taken care of, and providing you with an existing customer base before your season even begins. Our Revenue Streams Include: • Protective Barrier Treatments • Misting Systems • Tick Control • Special Event Sprays • Commercial and Municipal Property Protection Joining The Squad is a tremendous opportunity to pursue your personal, career, lifestyle, wealth, and income objectives. Contact Us to Get Started!
MOSQUITO SQUAD
2924 Emerywood Pkwy Suite 101 Richmond, VA 23294
42 FRANCHISE CONNECT | MAY-JUN 2019
(410) 910-9341 moleary@authoritybrandsllc.com www.mosquitosquadfranchise.com
COMPANY PROFILE
Homewatch CareGivers: The Business of CareAround Invest in a Unique Opportunity in the Home Care Industry
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ince 1980, Homewatch CareGivers® has been a premier provider of home care services, making a positive change in the lives of all those we serve. Through our home care franchise opportunities, entrepreneurs just like you have found a rewarding path to financial security and success by providing seniors and others in need of care with the assistance they need each day. As a franchise owner, you will grow a business that delivers professional in-home care to the elderly, people living with developmental or physical conditions, individuals recovering from surgery, and those living with dementia or Alzheimer’s. You can trust our corporate team at Homewatch CareGivers to support you with the training and resources needed to assist you in growing your home care agency.
The Homewatch CareGivers Advantage
• Our Approach to Care is Uniquely Powerful. Based on a person-directed approach to caregiving, our emphasis is on helping an individual to the best of their current abilities so that they continue to feel empowered. • We Use Technology to Support the Business of Care. Our proprietary business-management software facilitates our care approach by capturing social history, matching caregivers, and even tracking outcomes.
• We Offer Industry-Leading, Proprietary Business Intelligence Tools. Business Intelligence tools help franchise owners focus on business priorities, diagnose problems, and spot opportunities. • Our Signature Care to Stay Initiative Focuses on Best Practices for Caregiver Recruitment and Retention. We have worked directly with select Homewatch CareGivers offices to develop best practices and measure results to recruit and retain the best talent. Our proprietary training platform, Homewatch CareGivers University, ensures ongoing, professionally developed training for your caregivers and staff. • We Utilize a Smarter, More Effective Client Acquisition Model. Homewatch CareGivers offers unique tools to plan and position franchisees in the market to successfully grow and maintain clientele. • You’ll See Strong Financial Results. We invest in the long-term viability and success of our franchisees, offering a competitive royalty structure and lower incidental fees while still providing best-in-class training, business tools, and technology.
HOMEWATCH CAREGIVERS
6251 Greenwood Plaza Blvd. Suite 250 Greenwood Village, CO 80111
(410) 910-9341 moleary@authoritybrandsllc.com www.homewatchcaregivers.com /franchise-opportunities MAY-JUN 2019 | FRANCHISE CONNECT 43
COMPANY PROFILE
Venture X Franchise Opportunity The Future of Workspace
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enture X is a premier provider of membership-based flexible workspace with an inspiring, diverse and collaborative community. It’s much more than just shared office space. It’s a place where businesses launch, develop and achieve success. It’s where entrepreneurial dreams are born and realized. The thriving business model it represents makes it an excellent franchise opportunity. The way people work is changing. Technology and innovation through mobile devices, cloud computing and social networking allow people the freedom to work from anywhere at any time. Those who are trying to launch start-ups, freelancers and other self-employed workers want a place that not only removes them from the distractions of working at home, but also provides them with a rich work environment where they
can interact with like-minded people, collaborate, access future clients and resources, develop new friends and make valuable work and social connections. Venture X is just that place. Our smart, professional office spaces feature a modern design and boutique concierge-style services, allowing entrepreneurs and businesses the flexibility to grow in a diverse, engaged community. This helps attract a more professional and diverse membership. Venture X appeals to a wide membership base which includes creative professionals, freelancers, remote workers, startups, entrepreneurs, non-profits, small business to large teams from Fortune 500 companies. Venture X is the place people love to work. It’s also the place where YOUR entrepreneurial dreams can come true, as a franchisee.
VENTURE X 2121 Vista Parkway West Palm Beach, FL 33411
44 FRANCHISE CONNECT | MAY-JUN 2019
(561) 868-6368 brokers@ufgcorp.com www.venturexfranchise.com
COMPANY PROFILE
Experimax Franchise Opportunity
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Computers. Tablets. Phones - Buy. Sell. Trade. Repair.
cebox iExperimax is a one-of-a-kind concept. No one else in the world specializes in the sales of electronics products including, pre-owned computers & mobile devices, as well as low-cost repairs and upgrade and installation services all in one business model. Dominating in a market valued at over $400 billion, Experimax has become recognized as the preferred choice for electronics and certified preowned Apple products of all kinds. The idea started out of Jim Muir’s home garage, with the first location opening in West Palm Beach, Florida, in 2009. After rapid success with revenues reaching over $1,800,000, franchising Experimax was the next logical step. He joined forces with United Franchise Group in 2012 to franchise the concept globally. Experimax has gained attention quickly with sales of over 100 stores in the United States and 11 countries around the world. Experimax’s model will offer franchisees & Master License partners the opportunity to access Experimax’s exclusive supplier relationships, facilitating the store’s ability to provide desirable products for their customers. You will also be supported by United Franchise Group’s 30+ years of franchising experience and customer service, working to continue the success of the Experimax brand around the globe.
computers, tablets, and cell phones mobile devices and other electronics ● Inventory acquisition and access to preferred electronic vendors as well as in-store device trade-ins ● Selling a variety of electronic related accessories, specializing in the Apple brand ● Upgrading memory and hardware on a variety of electronic products ● Repairing
FASTFACTS ● Top
10 Best New Franchises for 2018 by Entrepreneur Magazine ● #223 on the Franchise 500 List ● #1 in Industry and #19 Overall by Military Times Best Franchises 2018 ● Featured on Fox News ● Over 100 stores in the United States and 11 countries
Our stores offer a variety of ways to profit from our Apple-related expertise: ● Selling electronic devices, including
EXPERIMAX
2121 Vista Parkway West Palm Beach, FL 33411
(561) 868-6368 brokers@ufgcorp.com www.experimaxfranchise.com
MAY-JUN 2019 | FRANCHISE CONNECT 45
COMPANY PROFILE
Total Row Fitness Join the Rowing Revolution!
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otal Row is a rowing centric group boutique fitness studio. Headquartered in Atlanta, Georgia husband and wife owners, Elliott and Lauren Smith, built Total Row on 3 founding principles: (1) Provide a scalable workout that someone of any age or ability can enjoy, (2) Broaden the target market of those looking to join group fitness classes, and (3) Give back to their local community. There is a reason rowing is making waves in the fitness industry! “We had worked out for years before, and most places are really intimidating unless you fit a very specific demographic. We decided to change this and created Total Row. By putting rowing front and center, we took advantage of the exercise’s total body, low-impact motion that almost anyone can do. Our studio is warm and welcoming, and it is a nice reprise from the celebrity instructors and head-banging music,” said Elliott. Because Total Row classes always have rowers
as the central cardio component, classes are total body, low-impact, and calorie-torchers (participants can burn up to 900 calories per class)! With the addition of suspension bands, kettle bells, slam balls, yoga, and more, each class is unique and fun! Classes are scalable to any age or ability, and we have members that range from Olympic gold medalists to grandparents! The Total Row Franchise is committed to supporting the communities that help it thrive. Each year, the company donates to 10 different charities through its “Give Me 10 Big Ones” program. Total Row franchises are unique, scalable, flexible and are built to thrive in both small and large markets. If you have a passion for helping people live better, healthier lives, we want you on our Crew! Total Row Studios have a low fixed cost structure, which opens the reality of owning an exciting, impactful business to a wide range of investment levels!
TOTAL ROW FITNESS
3655 Roswell Road Suite 204 Atlanta, Ga 30342
46 FRANCHISE CONNECT | MAY-JUN 2019
(404) 247-9328 studio@totalrowfitness.com www.totalrowfitness.com
COMPANY PROFILE
NaturaLawn of America is Looking for You! Key Territories are Available in Your Area
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alled “too far ahead of its time” in 1987, NaturaLawn of America—an organicbased lawn care company—has 91 franchise locations in 24 states serving over 100,000 customers and generates annual revenues in excess of $66 million. Their natural lawn care system consists of a proprietary line of organic lawn care products, and provides business opportunities to individuals wishing to secure their own franchise. With an annual average gross revenue produced by our franchise owners of $1,670,297 and the highest reoccurring revenues in the industry, NaturaLawn of America is the premier choice when seeking a franchise service business. NaturaLawn Advantages No other lawn care franchise opportunity offers you the name brand recognition NaturaLawn® of America does with our exclusive and proprietary line of organic-based products, our marketing and public relations efforts, and numerous association and consumer contacts. If you are serious about owning a business with consistent reoccurring revenue, this can be your opportunity to become part of the nation's most innovative and respected organic-based lawn care company.
• • • •
Proprietary natural, organic-based fertilizers Technical expertise On-site field training Professionally created marketing and promotional materials • National buying programs • …and much, much more Find Out More Today! In addition to organic-based lawn care revenues, you’ll get a mosquito control and tick control business, all for the price of one franchise! To receive your free NaturaLawn of America Information Package, visit www.naturalawnfranchise .com.
NaturaLawn Support We have many tools and resources available to help you grow. All you have to do is follow our proven franchise system while we provide you with: • In-depth classroom and field training
NATURALAWN OF AMERICA
1 East Church Street Frederick, MD 21701
(301) 694-5440 info@naturalawn.com www.naturalawnfranchise.com
MAY-JUN 2019 | FRANCHISE CONNECT 47
COMPANY PROFILE
Options For Senior America Wins 2019 Top of Home Care National Award Join the top 1% of senior care franchise system in the country
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elow is the 2018 Average Yearly Gross Revenue and Net Profit for a senior care franchise with Options for Senior America. If you would like to make the leap into financial independence and move to the top 2% earners in the US ($269,000 per CNN income rank index), then join one of the most established and lucrative franchise systems in the fastest growing industry in the country today. Make the first move by spending 90 seconds at http://optionscorp.com/franchise/inquiry and fill the 7 questions and submit. Or Call us today at 1-800-267-8466 to discuss this unique opportunity. • Largest Territories available with guaranteed number of seniors in your territory: 30,000 to 35,000 • Low Franchise Fee of $39,000 • Low Royalty fee: 3%-5% • Low start-up cost $57k - $88k (includes franchise fee of $39k) • First 2 months: Options gives you $3,000 in cash. • Proven Track record since 1989. • Sign up before June 30, 2019 and get a discount of $3,000. • Average net profit in 2018 for Options franchises which have been in operation for 3 years of more: $269, 258.
www.optionscorp.com
OPTIONS FOR SENIOR AMERICA CORP. 555 Quince Orchard Road Suite 240 Gaithersburg, MD 20878
48 FRANCHISE CONNECT | MAY-JUN 2019
(301) 562-1100 (or call Jason Blough, franchise consultant at (240) 446-6413) RRihani@optionscorp.com
COMPANY PROFILE
Lifting Noodles Ramen Now Available For Franchising Around Atlanta’s favorite ramen is ready to sweep the nation
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ifting Noodles Ramen is traditional Japanese ramen with a twist. We offer all your favorite classic ramen staples plus some fun, exciting dishes that really set us apart from your average ramen shop. Lifting Noodles opened in Atlanta in 2018 and has reached tremendous success and is working on opening its next 3 locations in the last quarter of 2019. Lifting Noodles Ramen is new but has proven to be a cult following and award winning brand. Lifting Noodles has just recently begun franchising and is looking to partner with people with a passion for food and looking for a strong simple business model. Lifting Noodles Ramen has incredibly low costs to open, low overhead, low staffing needs and incredibly high profits. The company is looking to expand across the country in 2020. Come join us on our quest for ramen world domination.
LIFTING NOODLES RAMEN
2678 Flat Shoals Ave SE Doraville, GA 30340
(917) 416-0738 keithschan@gmail.com www.LiftingNoodlesRamen.com
MAY-JUN 2019 | FRANCHISE CONNECT 49
BY THE NUMBERS
12
THE FRANCHISE BUSINESS CONTRIBUTES
$2.1
ONE OUT OF EVERY
COMPANIES HAS A FRANCHISE BUSINESS MODEL FOR ENTREPRENEURS TO INVEST IN
$250,000
TRILLION
AVERAGE INITIAL FRANCHISE INVESTMENT
TO THE US ECONOMY
(EXCLUDING REAL ESTATE)
8 MINUTES:
A NEW FRANCHISE BUSINESS OPENS EVERY EIGHT MINUTES EVERY BUSINESS DAY
50%
OF ALL RETAIL SALES IN THE U.S. COME FROM THE FRANCHISE INDUSTRY
McDONALD’S: THE TOP FRANCHISE COMPANY
300 DIFFERENT BUSINESS CATEGORIES IN WHICH FRANCHISING IS OFFERED
10 YEARS
THE AVERAGE LENGTH OF A FRANCHISE CONTRACT
Baskin-Robbins – known for its “31 flavors” slogan – has introduced over
1,000 ICE CREAM FLAVORS
since 1945. The top five selling Baskin-Robbins ice cream flavors are Vanilla, Chocolate, Mint Chocolate Chip, Pralines ‘n’ Cream and Chocolate Chip.
50 FRANCHISE CONNECT | MAY-JUN 2019
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Helping franchises thrive is important. Our expertise and knowledge of franchise specific lending, combined with our full-service banking capabilities, enables us to create solutions that fit your unique needs. • Customized solutions for acquisitions or buy-outs • Lending and real estate expertise for expansions and new construction • Equipment financing for new purchases and upgrades • Payment solutions to manage your business and cash flow effectively • Employee benefit solutions • Insurance options to help protect your investment1 See what we can do for your business. Stop by your neighborhood branch or contact us at 1-800-724-6070 or mtb.com today.
Equal Housing Lender. Insurance products are offered by M&T Insurance Agency, Inc., not by M&T Bank; are Not FDIC insured; not a deposit in, obligation of, nor insured by any federal government agency; not guaranteed or underwritten by the bank; not a condition to the provisions or terms of any banking service or activity. All loans and lines of credit are subject to receipt of a complete M&T application, credit approval and other conditions. Other terms, conditions, fees and restrictions may apply. Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions, and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details. ©2019 M&T Bank. Member FDIC. 20435 (3/19)
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