AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
FranchiseConnect
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VOL 01 ● ISSUE 02
THE FAB FOUR The Four Dominant
Franchise Industries
TOP 100
EDUCATION
FRANCHISES
what is franchising?
WHY PURCHASE
A FRANCHISE? QUESTIONS TO ASK BEFORE
BECOMING A FRANCHISEE
what to consider ider when investing in
COMMERCIAL OMMERCIAL REAL AL ESTATE MEET THE PEOPLE BEHIND THE BRANDS
STEMTREE
JUL/AUG 2019
IAL C E P S ISSUE
education and children’s products and services franchises
dlapiper.com dlapiper.com
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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 they need us. that extend around the world, we are there. We are issues, we’re in the trenches with them. 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
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The RX2Live franchise offers an outstanding return on investment for the franchisee and ďŹ lls 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
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A Rewarding Opportunity • Over 1,000 Mathnasium centers worldwide • Affordable start-up costs and robust demand • Extensive training and dedicated support The Mathnasium Method™ Transforms Lives For more than a decade, the Mathnasium Method™ has transformed the way kids understand and appreciate math. Our personalized learning method delivers proven results, giving kids the confidence to take on math ... and take on the world.
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Multiple Revenue Streams in Explosive Growth Industry iCode equips individuals with the skills and knowledge to compete in today’s technological environment. Our comprehensive curriculum includes exposure to the latest technologies and programming tools. With a STEAM-based teaching approach, students are immersed in learning that spans across disciplines, while also gaining experience in critical thinking, collaboration and idea development. As a result, iCode students graduate with exceptional workplace and entrepreneurial skills.
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For Inquires, contact Monica Brown
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WHAT'S INSIDE
09
FROM THE PUBLISHER Education Franchise Issue Sitki Kazanci
10
QUESTIONS TO ASK Before Becoming a Franchisee By Freddy O’Pry
12
What are you afraid of? By Faizun Kamal
COVER STORY The Promising Future of the Growing and Rapidly Evolving
EDUCATION FRANCHISE OPPORTUNITY By David Hodes
20
LEGAL ADVICE Special Considerations for Educational Franchisees By Jonathan Barber
24
3 Best Practices for Turning Stress into Success By Mary McHugh
18
MEET THE PEOPLE BEHIND THE BRANDS
STEMTREE
26
Service with a smile, a purpose… And Not Much Overhead By Heather Rosen
28
Should You Buy or Rent Your Place of Business? By Sara Jensen
30
Good Businesses Doing Good Things By Chris Conner
32
Do These 3 Things for Better Decision-Making By Melissa Kazanci
34
The Four Dominant Franchise Industries By Holly A Ford
36
What is Franchising? By Freddy O’Pry
38
Children’s Education Franchise By Linda Schaeffer
TOP 100 EDUCATION FRANCHISES
22
JUL-AUG 2019 | FRANCHISE CONNECT 7
AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
Upcoming Franchise Events & Conferences Sep 06 - 07, 2019 The Franchise Show Expo Cobb Galleria Atlanta, GA www.franchiseshowinfo.com
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8 FRANCHISE CONNECT | JUL-AUG 2019
May 28 - 30, 2020 International Franchise Expo The Javits Cente NewYork, NY www.ifeinfo.com INTERNATIONAL FRANCHISE SHOWS, EVENTS & CONVENTIONS Aug 07 - 09 2019 International Sourcing Fair Gallagher Convention Centre Gallagher Midrand, South Africa www.internationalsourcingfair.co.za Oct 10 - 13 2019 17th Franchising & Dealership Trade Fair CNR Expo Center Istanbul, Turkey www.bemyfranchise.com.tr Oct 16 - 17 2019 Women in Business Expo London, England Farnborough Int'l Conference Centre www.wibexpo.co.uk Nov 05 - 06 2019 The Global Franchise Market Dubai Int'l Convention Center www.globalfranchisemarket.com Nov 14 - 16 2019 Franchise Expo Frankfurt Frankfurt, Germany www.franchiseexpofrankfurt.com Mar 05 - 07 2020 Feria Internacional de Franquicias Mexico City, Mexico www.fif.com.mx
FranchiseConnect
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VOLUME 1, NO 2, JUL/AUG 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
Jonathan Barber Chris Conner Holly A Ford Faizun Kamal Freddy O’Pry Linda Schaeffer INTERN
Christina Huang DESIGN / PRODUCTION DESIGN
Creative Edge Design Studio COVER ART
Gokhan Kalafat PHOTOGRAPHY + VIDEO
Ibrahim Turk PRODUCTION MANAGER
Jennifer T. Gordon SALES / MARKETING
Suzanne Shutty Advertising Director (703) 665-5507 info@franchiseconnectmag.com Franchise Connect Magazine, published bimonthly 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
O
EDUCATION FRANCHISE ISSUE
Investing in a children’s franchise can be a solid choice
Our second issue is here. Thank you very much to everyone for your positive feedback and support. The first issue was widely distributed. We plan to extend the distribution locations for future issues to reach more readers. In each issue, we focus on a specific franchising sector. In this issue, we are looking at Education and Children's Franchises. The market for children’s services and products is massive and continues to grow–meaning big dollars are being spent on children. Parents will always spend money on their kids. A huge part of the economy is made up of spending on child-related services and activities. This is why investing in a children’s franchise can be a solid choice. Additionally, if you love kids, a children’s franchise is a great way to start your own business that is both rewarding and profitable while keeping you young at heart.
PARENTS WILL ALWAYS SPEND MONEY ON THEIR KIDS. A HUGE PART OF THE ECONOMY IS MADE UP OF SPENDING ON CHILD-RELATED SERVICES AND ACTIVITIES.
There are a great number of child-related franchise opportunities. Education and tutoring franchises are among the most popular and successful types of franchises focused on kids. Millions of parents in the U.S. rely on tutoring services to help their children succeed. And of course child care is another huge industry with most parents working full-time jobs. If you’re looking for something on the lighter side, how about a children’s party or educational play franchise? With so many options, you’re bound to find a children’s business you love. In this issue, you will find a lot of expert advice and information on education and children's franchise opportunities. It will help you make a better decision. All our content providers are also experts in franchising. If you need any help, please contact them directly. In our next issue, we will focus on Health and Fitness Franchises, Healthcare and Senior Care Franchises, and Sports and Recreation Franchises. We will publish the TOP 100 Fitness Franchises list as well. Reserve your space now! We would like to introduce a new marketing and lead generation platform for you: Franchise Connect 360. It includes display ads, digital ads, online banner, eblasts, social media all in one. This platform helps you sell more and reach more customers. If you are a franchisor, franchise service provider, or commercial real estate expert, stay tuned. You will love this opportunity. Save the date: Our next issue will be distrubuted at The Great American Franchise Expo on October 5-6 at the Dulles Expo Center in Virginia. If you are in the Washington DC area, stop by and meet us face to face at the expo. See you in the next issue.
SITKI KAZANCI / Founder-Publisher
JUL-AUG 2019 | FRANCHISE CONNECT 9
PHOTOGRAPH COURTESY SHUTTERSTOCK
QUESTIONS TO ASK
Before Becoming a Franchisee There are many questions to ask and receive satisfactory answers before investing in ANY franchise. By Freddy O’Pry
Q How reputable is the franchise being considered? Q Have you checked out the general public’s attitude about this particular franchise? Is it generally favorable or unfavorable?
Q Have you seen the number and percentages of franchisees who have failed and closed shop with particular franchises?
Q What sets this brand and business model apart from other such franchises?
Q Is this business model sustainable in your desired location? Will you be selling “ice to Eskimos”? Q Is the market saturated for this brand or concept in your area? 10 FRANCHISE CONNECT | JUL-AUG 2019
Q Is this franchise legally able to be sold and opened in the municipalities where you intend to operate? Is it licensed by your state, city, county, etc.? Q Do you have sufficient cash to sustain the franchise for the first year or more? Cash is King. General Motors was generating billions in revenue but w as just about out of cash when the US government stepped in and saved it. The government won’t save you.
Q How many current franchisees of the brand you are interested in have you spoken to in confidence? Have you been able to REALLY find out how happy or unhappy they are with their decision to acquire their particular franchise? Would they choose their same brand today? Q Are the financial metrics indicating that a particular brand’s successes are declining? Is gross revenue climbing or declining? Are required expenses growing faster than revenue is growing? Has the franchise been sold, and is the new franchisor imposing too many additional fees or raising required prices to increase their revenue in preparation to “flip" (resell) the brand at the franchisee’s expense? This happens more often than the public realizes.
START SMART
Q Can you purchase comparable required items for yourself from other suppliers?
Q Do you really understand all of the
Q Have the financial statements contained in the FDD been audited by a reputable CPA firm, and do they look solid to your financial attorney and your own CPA? Q Does a particular franchise publish an earning claims statement (Section 19 of their FDD)? If not, why not? Are they hiding low or negative average net profits of their franchised units? Have you discussed individual current franchisees' net earning with several current franchisees? Q Have you researched to see if any law suits have been filed either by franchisees against the franchisor or by the franchisor against franchisees? Have you spoken to former franchises of a brand to determine why they REALLY left the system? You may learn a great deal about such reason. The FDD must
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PHOTOGRAPH COURTESY SHUTTERSTOCK
terms and requirements documented in the franchise’s Franchise Disclosure Document (FDD)? Have you consulted a franchise attorney prior to executing a Franchise Agreement? Have you tried negotiating with the franchisor on any particular requirements you do not like? While the likelihood of the franchisor changing any of their requirements is small you will never know unless you have a franchise attorney ask for you.
disclose law suits, former franchisees, actions by municipalities against the franchisor, etc. Use that information thoroughly and immediately BEFORE executing the Franchise Agreement.
professional franchise broker/advisor who you believe has your best interests in mind. All of these things will help you to be much happier and more prosperous in the future.
Q Does the financial balance sheet of
Good luck in your quest to become a happy and successful franchisee. Franchising is not for everybody, and everybody is not for franchising, but franchising has been proven to be the best way for hundreds of thousands of others to acquire great financial, emotional, and psychic success. Hopefully franchising will be the right choice for you and for your family also. w
the franchisor seem solid to your CPA and/or your franchise attorney? I have personally seen balance sheets where my own personal net worth exceeded a franchisor’s Net Worth, cash on hand, other assets, etc.
Q In the end are you as close to 100% positive and excited about a particular franchise? Have you done the best due diligence you could possibly do in determining if this is the best franchise for you and for your family? If not, keep looking while working with a
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 (281) 342-7474 or at freddyopry@ franchisedevelopment.com.
JUL-AUG 2019 | FRANCHISE CONNECT 11
The good news is that fear is not always a bad thing. In fact, it can be a great thing – as long as it is channeled the right way. By Faizun Kamal
M
aya Angelou once said, “Hope and fear cannot occupy the same space. Invite one to stay.” If only it were that easy. Hope and fear are actually two sides of the same coin. If you have ever started a new job, had a baby, decided to get married, gotten a driver’s license, or had a new experience, you have probably felt fear. It is a universal emotion. The good news is that fear is not always a bad thing. In fact, it can be a great thing – as long as it is channeled the right way. You are reading this article because you are contemplating buying into a franchise. If the fear you feel is a red flag that prevents 12 FRANCHISE CONNECT | JUL-AUG 2019
you from jumping headfirst into a venture without doing your due diligence, then this fear is good and empowering. It cautions you to minimize your risk and protects you from rash decisions. On the other hand, fear can also be a debilitating feeling that stops you in your tracks before you’ve even given yourself the chance to explore something new. Sometimes, a new opportunity can be the chance of a lifetime. This kind of fear is self-destructive and disempowering. It can lead us to things that are not good for us – like staying in a toxic work environment because the fear of the unknown is too overwhelming. Does the thought of starting a franchise, breaking with your career, charting an
unknown path scare you? Good! It simply means you are human. As fear rises, take a deep belly breath and go inwards. Ask yourself: Why? What about this scares me? Am I acting too quickly? Am I scared of failing? Am I scared of being successful? What will success mean? Am I scared because I might lose friends and family?” Helping clients manage their fears – and use them to their advantage – is a key part of the value I bring to my clients as their franchise coach. The coach you work with should do the same for you. When Peggy came to me, she had been a stay-at-home mom to two preteens for several years. When she and her husband moved to the United States from Latin America, they
PHOTOGRAPH COURTESY SHUTTERSTOCK
What Are You Afraid Of?
BOOK
had made the decision for her to take care of the children. Her husband traveled constantly for his work and was almost never around, making it even more imperative for her to take on the role of primary caretaker. Before she moved to the U.S., Peggy was the Director of Human Resources at one of the top accounting firms in the world. She had led large teams of people, managed strategic initiatives, and led growth for her company. When she began working with me, she had gotten deeply frustrated by the lack of corporate opportunities that fit where she was in her life. She had started wondering if a franchise was the best option for her and her family. Over the course of the next couple of months, I worked with her to evaluate various franchise brands. She had a lot of fears around losing the investment, not being able to grow the business, and not being able to be successful as an entrepreneur. Many of her fears were not rooted in reality. She began to understand that most of her fears were addressed and eliminated by doing thorough due diligence to understand the business inside and out. Peggy is now the successful owner of a franchise that provides staffing services to mid- and large-sized companies. And those fears that reared their ugly heads? They are nowhere to be seen! My advice? Welcome the good fear. Rational fear can propel you to do thorough research, ask better questions, and make informed decisions. So who knows? Maybe fear and hope can occupy the same space. w You can find Faizun Kamal's new book at Amazon. Excerpted from The Right Franchise for You: Escape the 9 to 5, Generate Wealth, & Live Life on Your Terms. A graduate of Stanford University, Faizun Kamal is a nationally renowned public speaker, author, and career strategist. As CEO of The Franchise Pros, Faizun coaches people nationwide on making the transition from employee to entrepreneur. She guides clients to move beyond career burnout to build a sustainable career that they love! Email Faizun at faizun@thefranchiseconsultingcompany.com.
The Right Franchise for You: ESCAPE THE 9 TO 5, GENERATE WEALTH, & LIVE LIFE ON YOUR TERMS
Find the franchise that is right for you!
C
limbing the corporate ladder is always hard, but it is especially tricky for women. Many are opting out of corporate America and choosing to go a different route! Owning a franchise is a great option if you want to work and earn income but cannot put in the hours that traditional corporate jobs demand. Business ownership gives you the flexibility to grow at you own pace while working hours that fit with your personal responsibilities. Let Faizun Kamal, renowned franchise coach and former corporate
executive, guide you through her proven process of researching and buying your future franchise. This will exponentially increase your probability of success! If you’re serious about finding a better career path, then by the end of The Right Franchise for You, you will • Learn the proven process to find the best franchise for you • Uncover the pitfalls to avoid making a costly mistake • Determine the best way to fund your franchise • Discover the ONE key to making your franchise search a successful one Don’t wait! Get started on a path to a fulfilling and lucrative career as a franchise owner. Create your life of profit, purpose, and passion!
Purchase this book from Amazon! This is the only book you need to help you find the franchise that is right for YOU! If you already know a franchise is the next move for you, you can contact Faizun directly at: Faizun@thefranchiseconsultingcompany.com.
JUL-AUG 2019 | FRANCHISE CONNECT 13
THE PROMISING FUTURE OF THE GROWING AND RAPIDLY EVOLVING
EDUCATION FRANCHISE OPPORTUNITY By David Hodes
O
ne of the fastest growing franchise opportunities in the country is the education franchise, and it’s on the rise for three key reasons: the public education system in the U.S. is out of step with the reality of a rapidly changing world; people want a more focused learning experience for themselves and their children that makes the most efficient use of the time and money invested; and the business world is demanding an employee with a deeper understanding of certain specific areas of study for more and more jobs in advanced manufacturing, aerospace, automotive engineering, cybersecurity, and basically anything that requires education in science, technology, engineering, and math (STEM). Education franchises are sometimes called enhanced learning experiences, because they add depth to the curriculum that students may be getting in grade school and middle school. But because they are personalized learning experiences for students, with many offering one-on-one instruction, they also add a broader skillset of organizational understanding and productive social interaction not available in public school classrooms. Franchising opportunities cover the gamut of enterprises, from the usual food service chains (McDonald’s, Kentucky Fried Chicken, Sonic, Taco Bell, and others) to real estate (ReMax, Keller Williams, and others) to hospitality (Hampton Inn, Holiday Inn and Holiday Inn Express, and others). Automotive, personal services (expected to be a franchise growth leader this year), fitness centers, maid services, lawncare services, business services, and more round out the list of top franchises. Many of these franchise opportunities have been growing steadily for years. In a 2018 report from by the Franchise Education and Research Foundation, researchers estimated the number of franchise establishments increased 1.6 percent in 2017, and expected them to increase another 1.9 percent in 2018, up to a total of 759,000 from just under 709,000 in 2014, generating $757.2 billion in revenue. Education franchises are moving in and up on the list of franchises on the move, from a mere blip on the radar of overall franchise opportunities ten years ago to just over one percent of the franchise market in 2017, according to an ADP Research Franchise Report.
“EDUCATION FRANCHISES ARE SOMETIMES CALLED ENHANCED LEARNING EXPERIENCES, BECAUSE THEY ADD DEPTH TO THE CURRICULUM THAT STUDENTS MAY BE GETTING IN GRADE SCHOOL AND MIDDLE SCHOOL” 14 FRANCHISE CONNECT | JUL-AUG 2019
JUL-AUG 2019 | FRANCHISE CONNECT 15
ARTWORK BY YUGANOV KONSTANTIN
COVER STORY
"EDUCATION FRANCHISES ARE FINDING POPULARITY NOW BECAUSE ADULTS WANT AN EDGE FOR THEMSELVES OR, MORE IMPORTANTLY, FOR THEIR CHILDREN."
and ongoing franchise fees that are considered relatively reasonable compared to the fees charged by other franchises. Getting a McDonald’s franchise requires an initial investment of over $1 million. One education franchise example is The Learning Experience Academy of Early Education, number 84 on the Franchise 500 list, requiring franchisees to have $500,000 in
PHOTO BY SHUTTERSTOCK ● ILLUSTRATION BY GOKHAN KALAFAT
In another listing of the top 500 franchises in the country by Entrepreneur magazine, Kumon Math and Reading Centers led all education franchises (14th on the list), followed by Mathnasium Learning Centers (40th on the list), and Huntington Learning Centers (48th on the list), with a host of other education franchise businesses in the top 100. All come with various financial requirements
liquid cash, with an initial franchise fee of $60,000. That company, which has provided education-based childcare services for over 30 years, adjusted their curriculum offerings in 2003 to include extensive enrichment programming. Education franchises are finding popularity now because adults want an edge for themselves or, more importantly, for their children. Adults are looking to get their children early immersion into a chosen field of endeavor, in part because the workforce competition has become fiercer, and the perception that a broader understanding of social interactions makes their child a more well rounded, informed, and productive citizen. Adults see education franchises as a way to continue training in their chosen field after of high school without incurring huge student loans from college. But most of the leading education franchises are focused on children, some as young as three, and many were founded either by teachers or parents who discovered that their child wasn’t getting the best education at the local public school. For example, Kumon was started by a high school math teacher, Toru Kumon, who wanted to help his second grade son with his math homework and give his son a
16 FRANCHISE CONNECT | JUL-AUG 2019
more logically developed, focused learning experience that has become the hallmark of education franchises today. The teaching philosophy at Kumon includes making sure that the student is given a level of material that corresponds with the student’s level of ability; that the rate of progress should be determined by the student and not the teacher; and that the material should be organized in a coherent, logical progression. That approach to education must start at an early age. Kumon, founded in Japan in 1958 to teach math and reading from preschool to high school level, has grown to 1,500 centers in the U.S. and over 24,000 worldwide, teaching nearly 300,000 students in the U.S. “Kindergarten readiness is one of the biggest predictors in how a child will perform academically all the way throughout elementary school,” Dominique Ciccarelli, education spokesperson for Kumon North America, said during a segment that aired on Maryland television station WMAR-2 News. “It’s not just about knowing the alphabet or your numbers. It really has to do with a lot of other skill sets as well, like social skills, eagerness to learn, and speaking and listening skills.” An article in Franchise Times cautioned readers to understand that educational franchises are not just some glorified daycare center with lesson plans. They are real businesses that offer valuable curriculum to consumers and high-profit potential for investors, according to Joel Libava, a consultant with Franchise Selection Specialists. “These types of franchises are definitely popular right now, especially among dual-income families that don't have a lot of time on their hands,” Libava said in the article. “Kids in third through eighth grades who need math and reading services are the sweet spot for this industry.” As the education franchise business
“THIS IS A BRAIN EXERCISER. THE FACT THAT YOU HAVE LITTLE KIDS CODING AND BUILDING ROBOTS AND ENHANCING THEIR BUILDING SKILLS AND THEIR LOGIC SKILLS HAS A DIRECT IMPACT ON THEIR SCHOOLING."
evolves, there is push to present curriculum on specific subjects. For example, St. Louisbased Little Medical School, franchising since 2014, offers courses in all positions in healthcare, including doctors, nurses, and nurse practitioners. Stemtree Education Center, based in Vienna, Virginia, offers curriculum specific to STEM to children as young as four. Dr. Abdelghani Bellaachia, or “Dr. Bell,” a software engineer and former associate professor at George Washington University, is the center director of the Stemtree Education Center franchise, offering what he calls a “digital playground.” “A lot of families spend a lot of money on different sports,” he says. “This is a brain exerciser. The fact that you have little kids coding and building robots and enhancing their building skills and their logic skills has a direct impact on their schooling. Unfortunately that is not something that is being taught in schools today. “People ask me how can those kids do coding? I tell them kids are the most logical human beings. You tell your kid if you do your homework, then you can watch tv. If you behave, then I am going to give you this or that. Those are all similar if/then statements in any programming language.” The future of education franchises is very bright. They have grown from being located in large population centers on each coast, in and near cities where competition for the high-paying jobs is greater and two-income families flourish, to more cities in the U.S. No matter what curriculum is being taught at any one education franchise, they all have a singular focus – creating a better workforce for tomorrow that is able to understand and grow with the new technologies and new processes affecting nearly every occupation. w David Hodes is a business and lifestyle journalist based in the greater Washington D.C. metropolitan area. He is the former editor of seven different business magazines, and has contributed feature articles to regional and national business/ lifestyle publications, including Arlington magazine, Washington Business Journal, Northern Virginia magazine, Virginia Business, Washington SmartCEO, Baltimore SmartCEO, Business Xpansion Journal, and Global Corporate Xpansion magazine. Hodes is a member of the National Press Club and a former deputy manager of the club’s Newsmaker Committee where he organized and moderated multiple press conferences. He is now a deputy booking agent for the club’s Headliners Committee.
EDUCATION w About 56.6 million students will attend elementary and secondary schools, including 50.7 million students in public schools and 5.9 million in private schools. Of the public school students, 35.6 million will be in prekindergarten through grade 8 and 15.1 million will be in grades 9 through 12. The fall 2019 public school enrollment is expected to be slightly higher than the 50.6 million enrolled in fall 2018 and is higher than the 49.5 million students enrolled in fall 2010. Total public elementary and secondary enrollment is projected to increase between fall 2019 and fall 2027 to 52.1 million.
w About 3.6 million students are expected to graduate from high school in 2019–20, including 3.3 million students from public high schools and 0.4 million students from private high schools.
w Public school systems will employ about 3.2 million fulltime-equivalent teachers in fall 2019.
w About 4.0 million public school students are expected to enroll in 9th grade in fall 2019. Students typically enter American high schools in 9th grade.
JUL-AUG 2019 | FRANCHISE CONNECT 17
MEET THE PEOPLE BEHIND THE BRANDS
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Educate Kids in a Fun Environment By Christina Huang
S
temtree was founded in 2010 by Dr. Abdelghani Bellaachia, (Dr. Bell). Originally from Marrakesh in Morocco, Dr. Bell came to the US as a Fulbright scholar. He studied electrical engineering at one of the top schools of engineering, Mohammadia School of Engineering, in Morocco. While there, he was inspired by a young but very competent French teacher who taught them to build an electronic machine that measures the difference in phase in two electrical currents. One of his goals when establishing Stemtree was to engender this same love of
science in children from an early age. His goal was to educate kids in a fun environment. He moved away from the traditional classroom setting and instead set up a hands-on environment where children learn at their own pace. We asked Dr. Bell some questions: What is unique about Stemtree? Nobody else is doing what we do. We customize each curriculum to each student in each grade level. We assess every child and develop a learning plan just for them. We have four programs: science, coding, robotics, electricity and electronics. Typically after-school programs fall into one
of two categories, remedial or enrichment. Stemtree is in the enrichment category. Traditionally, students play sports or learn a musical instrument, but now they can attend a brain exerciser program through hands on activities at Stemtree. We take kids as young as kindergartners and go all the way to 12th grade. We are particularly proud of the fact that about 50% of our coding students are female. When I taught computer science at George Washington University, usually there were only three or four females in a class. Everybody needs to understand how computer programs work even if they never work in this field. Many students do not take computer science at regular school. If they do, children with mixed knowledge and grade levels are taught the same material with some students ending up knowing more than even the teacher while others with no knowledge feel left behind. Here at Stemtree, kids never repeat anything. We combine a 45-minute lesson with hands-on training. The only time they are on computers is for the coding session. We make sure that we keep track of everything they are learning. For the younger kids we tailor our sessions to the fact that they are tablet kids and won't know how to use a mouse. How do you get students? I do four marketing campaigns a year, each with a different theme. We work a lot with the local schools. We donate to most of their requests we receive from funding a 5k race to silent auctions. After-school care is a huge challenge for working parents.
18 FRANCHISE CONNECT | JUL-AUG 2019
“We Bring Science and Engineering to Life" How many franchises do you have to date? We have nine locations so far. We have two in Washington State, one in Arizona, and several in Virginia: in Falls Church, in Fairfax, in Glen Allen, in Midlothian, VA. We are planning another for Ashburn, VA this summer. Our headquarters is in Vienna, VA. We are an emerging brand. The average cost of getting into the franchise is $90,000. This is on the low end as franchises go. How do you select franchisees and locations? Typically, people who come to us have already done some research. We are looking for people
who are looking to make a contribution to the community in the STEM [science, technology, engineering, and mathematics] arena. We want people who are prepared to make a full time commitment. Obviously, they have to like working with kids. We have a comprehensive training program for new franchisees. We study the demographics of the area they plan to open in. We refer them to a commercial real estate person. We have a list of vendors for everything from the furniture down to the pencils. Each location has its own Facebook page, but there is a uniform look to all our locations.
What are your plans for the future? We would like to grow more. Ideally, we would like to be in every zip code, but at the same time, we want to be able to manage the growth. This franchise has 365-day potential revenue. Summer camps are a big revenue generator. Our curriculum is unique. It is a profitable business. Investing in a Stemtree franchise is a great way to contribute to the development of STEM here in the US. w
For more information, visit: www.stemtree.com
JUL-AUG 2019 | FRANCHISE CONNECT 19
Special Considerations for
EDUCATIONAL FRANCHISEES By Jonathan Barber
E
ducational franchises are hot right now. Day care, sports leagues, music, art, and tech concepts are taking over. You can walk through a strip mall in any suburban area and count the child-focused
20 FRANCHISE CONNECT | JUL-AUG 2019
franchises, and they’re packed! Our firm has State Daycare Laws worked with many franchisees who ended I never knew about state day care laws until I up buying into educational franchises, and I was doing research while drafting a franchise recently franchised a long-standing children’s disclosure document for a new educational art studio. There are a few “extra” things to concept. In every state, there are laws that keep in mind if you’re looking into an edu- regulate day care. Each of these laws defines cational or child-focused franchise. “day care” differently, too. Some states base their definition of daycare on the number of hours a child is present at the business. For instance, if a child spends three or more hours at the business, then that business is considered a day care. Initially, this doesn’t sound too important. However, the ramifications of being classified as a day care business are huge! In every state, day care centers are subject to heavy regulation. Typically, the Department of Social Services or the Department of Human Services regulate daycare. Immediately upon being classified as daycare, the business will have to obtain a daycare license, which can be an expensive and grueling process. If anything at the business fails an examination, the business will
PHOTOGRAPHS COURTESY RAWPIXEL
LEGAL ADVICE
be subject to heavy fines and, potentially, closure.
Safety
Educational franchises are hot right now. Day care, sports leagues, music, art, and tech concepts are taking over.
the child up, you could face serious liability for letting that child go with someone they weren’t supposed to leave with.
Safety is an obvious concern any time chil- Competition dren are involved! You will use common On a less scary note, consider the competisense to figure out if a particular franchise tion in the educational and child-focused model is safe for children. However, there are franchise space! Are you going to drop a some additional concerns you should keep in children’s art studio right between a chilmind. For instance, is this business a drop-off dren’s dance studio and a children’s swimmodel where children are dropped off for a ming franchise? Essentially, your competition class or session and then picked up by their encompasses all extracurricular activities. parents or guardians afterward? Are the par- Talk with the franchisor about what other ents or guardians present while the children child focused franchises compliment yours. are there? You will want to make sure the In the adult-space, it makes sense to drop franchise has solid systems and procedures a juice bar next to a fitness franchise. What for ensuring the children are safely dropped synergies exist between children’s concepts? off and picked up. For example, if a mother drops off her child for a class, you will want Dual Purpose Concepts to know who, if not the mother, is authorized There are a few educational franchise conto pick that child up. If the family is going cepts out there that allow franchisees to through a domestic issue, and an unauthor- operate non-child-focused services as well. ized person like an estranged parent picks For instance, the children’s art studio that I
worked with in creating their franchise allows their franchisees to do adult paint and wine classes in the evenings when there are no scheduled children’s programs. They also do “Mommy and Me” types of classes where adults can participate as well. We also work with a children’s cooking franchise. They allow their franchisees to also host adult classes at certain times. This can expand a franchisee’s customer base and create additional revenue streams. If you are considering purchasing an educational or child-focused franchise, you should find out whether a particular concept offers other adult options as well. w Jonathan Barber is invested in franchisees' success. As a partner at Barber Power Law Group, Jonathan's focus is exclusively on franchise law. He assists franchisees through their due diligence and negotiations. Jonathan also works with emerging and established franchisors. Contact Jonathan at jonathan@franchise.law or by calling (980) 202-5679. Visit www.franchise.law.
JUL-AUG 2019 | FRANCHISE CONNECT 21
FranchiseConnect
®
TOP 100 EDUCATION FRANCHISES FRANCHISOR NAME
Kiddie Academy Stemtree Montessori Kids Universe Mathnasium Learning Centers LearningRx iCode Computer Science School Tutor Doctor Club Z! In-Home Tutoring Services School of Rock Young Engineers Muse Global Zooga Yoga Enterprises Inc. Tierra Encantada Wize Computing Academy Children First Sports Code Wiz Little Medical School British Swim School USA The Little Gym Int'l. Bach to Rock College Nannies, Sitters and Tutors Aqua-Tots Swim Schools Drama Kids International Lightbridge Academy Eye Level Learning Centers Challenge Island Abrakadoodle The Tutoring Center Tutu School JEI Learning Center Sylvan Learning LLC STEM For Kids GradePower Learning Parker-Anderson Enrichment Computer Explorers FasTracKids Int'l. Ltd. Gymboree Play & Music High Touch-High Tech Mad Science Group Inc. Tutoring Club LLC The Whole Child Learning Co. Young Rembrandts CompuChild KidzArt Ho Math Chess Tutoring Center Chyten Educational Services Club SciKidz Kidville Wee Little Arts Inc. All About Kids Baby Sensory USA
FOUNDED
1981 2014 1988 2002 1986 2015 2000 1995 1998 2008 2006 2012 2013 2015 2017 2018 2010 1981 1976 2007 2001 1991 1979 1997 1976 2003 2002 1994 2008 1977 1979 2011 1984 2005 1983 1998 1976 1990 1985 1991 1996 1988 1994 1997 1995 1999 1997 2005 2000 2005 2003
FRANCHISING SINCE
INITIAL INVESTMENT
CONTACT
PHONE
WEB ADDRESS
1992 (27 Years) 2016 (3 Years) 2013 (6 Years) 2003 (16 Years) 2003 (16 Years) 2016 (3 Years) 2003 (16 Years) 1998 (21 Years) 2005 (14 Years) 2008 (11 Years) 2019 (0 Years) 2016 (3 Years) 2019 (0 Years) 2018 ( 1 Year) 2019 (0 Years) 2018 ( 1 Year) 2014 (5 Years) 2011 (8 Years) 1992 (27 Years) 2011 (8 Years) 2005 (14 Years) 2007 (12 Years) 1989 (30 Years) 2011 (8 Years) 1976 (43 Years) 2012 (7 Years) 2004 (15 Years) 2005 (14 Years) 2012 (7 Years) 1992 (27 Years) 1980 (39 Years) 2014 (5 Years) 1991 (28 Years) 2014 (5 Years) 1988 (31 Years) 1998 (21 Years) 1978 (41 Years) 1993 (26 Years) 1995 (24 Years) 1999 (20 Years) 1999 (20 Years) 1997 (22 Years) 2001 (18 Years) 2002 (17 Years) 2004 (15 Years) 2007 (12 Years) 2007 (12 Years) 2007 (12 Years) 2009 (10 Years) 2008 (11 Years) 2007 (12 Years)
$700,000 $65,200 - $128,800 $426,511 - $933,671 $112,750 - $149,110 $91,500 - $198,000 $284,000 - $409,000 $100,000 - $300,000 $33,800 - $52,750 $169,350 - $399,100 $36,400 - $59,183 $432,125 - $2,204,325 $90,542 - $241,428 $591,250 - $1,055,000 $29,800 - $66,750 $39,350 - $46,000 $66,000 - $137,000 $36,800 - $53,200 $92,900 - $239,400 $181,450 - $431,500 $291,850 - $504,500 $105,000 - $173,000 $496,945 - $1,015,734 $33,800 - $43,500 $549,228 - $5,054,735 $76,338 - $143,750 $47,600 - $62,450 $37,962 - $81,812 $92,500 - $139,200 $73,700 - $135,200 $66,250 - $110,000 $70,980 - $159,885 $19,900 - $48,650 $106,600 - $275,000 $15,980 - $81,100 $62,925 - $73,250 $48,117 - $203,517 $120,935 - $279,900 $62,750 - $69,000 $74,800 - $110,459 $56,500 - $109,900 $32,600 - $38,800 $41,250 - $48,120 $18,300 - $33,000 $21,490 - $34,090 $31,550 $138,900 - $261,500 $43,012 - $63,420 $300,000 - $450,000 $31,400 - $46,940 $2,677,500 - $3,372,500 $33,300 - $43,400
Jeff Brazier Dr. Abdelghani Bellaachia Thomas J. Boehm Laura Klippel Dr. Ken Gibson Monica Brown Frank Milner John Leekley Elliot Balndini Danny Eizicovits Rebecca Amis Antonia King Kristen Denzer Vishal Bhasin Dadi Denis Ruth Agbaji Jennifer Griffard Mike Conlon Heather Thornton Belcher Elana Hayden Michael Condon Rose Marasco Susie Pallis Brenda Febbo Michael Hutchins Sharon Duke Rosemarie Hartnett Joanne Romero Genevieve Weeks Ms. Sophie John McAuliffe Matt Bowman Michael Howard John Manley, M.S. Lorri Wyndham Kristin Rude Bonnie Stewart JoLynn Jordan Shafik Mina David Hill Matt Barron Bette Fetter Julie Standish Mary Ann Bearman Frank Ho Neil Chyten Matt Bogusz Megan Cunningham Melissa Bradshaw Jim Kaiser Lin Day
(410) 515-6060 (703) 281-7836 (561) 339-9121 (888) 763-2604 (719) 264-8808 (972) 665-3888 (800) 488-8677 (754) 208-3264 (630) 283-7543 (248) 602-3162 (818) 449-8659 (310) 839-6642 (651) 686-2936 (214) 226-4595 (513) 489-7575 (857) 251-4820 (877) 389-2439 (973) 957-3111 (602) 996-1380 (301) 913-5757 (952) 476-0262 (480) 649-8687 (617) 391-0369 (732) 980-1900 (201) 638-9711 (770) 310-4400 (703) 860-6570 (562) 653-4380 (415) 734-8840 (323) 803-7152 (410) 656-8658 (866) 991-7053 (844) 475-7523 (818) 249-5599 (832) 562-0388 (303) 224-0200 (415) 242-5637 (800) 444-4968 (514) 344-4181 (702) 588-5280 (540) 553-8240 (847) 742-6966 (317) 817-9817 (601) 501-7446 (604) 263-4321 (800) 428-8378 (267) 250-0172 (212) 772-8435 (843) 345-8174 (859) 538-1387 (281) 782-0814
www.kiddieacademy.com www.stemtree.com www.montessorikidsuniverse.com www.mathnasium.com www.learningrx.com www.icodeschool.com www.tutordoctor.com www.tutors.clubztutoring.com www.schoolofrock.com www.e2youngengineers.com www.museglobal.org www.zoogayoga.com www.tierraencantada.com www.wizeacademy.com www.kidsfirstsports.com www.thecodewiz.com www.littlemedicalschool.com www.britishswimschool.com www.thelittlegym.com www.bethesda.b2rmusic.com www.collegenanniesfranchise.com www.aqua-tots.com www.dramakidsfranchise.com www.lightbridgeacademy.com www.myeyelevel.com www.challenge-island.com www.abrakadoodle.com www.longbeach.tutoringcenter.com www.tutuschool.com www.us.jei.com www.sylvanlearning.com www.stemforkids.net franchise.gradepowerlearning.com www.parker-anderson.org www.computerexplorers.com/houston www.fastrackids.com www.gymboreeclasses.com www.sciencemadefunrdu.net www.madscience.org www.tutoringclub.com www.wholechild.com www.youngrembrandts.com www.compuchild.com www.centralms.kidzart.com www.mathandchess.com www.chyten.com www.clubscikidzmd.com www.kidville.com www.weelittlearts.com www.allaboutkidslcunion.com www.babysensory.us
22 FRANCHISE CONNECT | JUL-AUG 2019
FRANCHISOR NAME
Above Grade Level In-Home Tutoring Park Place Children's Center My Music Skool Salisbury Tutoring Academy Bricks 4 Kidz Athena Learning Centers Genius Kids Montessori Kids Universe Foodie Kids Class 101 ABC Do-Re-ME! Nutty Scientists Brick by Brick Engineering for Kids A Plus All Subjects Tutoring Inc. Fresh Green Light Omega Learning Center Taste Buds Kitchen Best in Class Education Center Chef It Up!/Chef It Up 2 Go! Hobby Quest Group Lafayette Academy STEMTech Kids/GreenApple STEM MindsAhead Academy Bricks Bots & Beakers Teen Road To Safety Inc. MathWizard Franchise Little Engineers London Day School Elite Tutoring Place Snapology Pinnacle Montessori the Coder School Building Kidz School RoboThink LLC Brainiac Math & English Centers IDEA Lab Kids One River School of Art & Design Ivybrook Academy Reading Ranch CodeFu ConfidentLee Kids Can CAD Flour Power Kids Cooking Studios GolfU My Music Workshop MakerKids Best Brains Kids 'R' Kids International
FOUNDED
2009 2008 2008 1996 2008 2011 2001 1988 1991 1998 2009 1996 2011 2009 1976 2009 2005 2007 1988 2003 2003 1991 2013 2003 2012 2003 2001 2012 2008 2014 2010 2009 2014 2002 2016 2015 2012 2012 2007 2006 2015 2015 2017 2008 2015 2009 2013 2011 1985
FRANCHISING SINCE
INITIAL INVESTMENT
CONTACT
PHONE
WEB ADDRESS
2009 (10 Years) 2011 (8 Years) 2014 (5 Years) 2007 (12 Years) 2009 (10 Years) 2012 (7 Years) 2011 (8 Years) 2013 (6 Years) 2012 (7 Years) 2007 (12 Years) 2013 (6 Years) 1997 (22 Years) 2013 (6 Years) 2011 (8 Years) 2012 (7 Years) 2013 (6 Years) 2007 (12 Years) 2013 (6 Years) 2011 (8 Years) 2005 (14 Years) 2012 (7 Years) 2014 (5 Years) 2014 (5 Years) 2005 (14 Years) 2014 (5 Years) 2011 (8 Years) 2012 (7 Years) 2015 (4 Years) 2015 (4 Years) 2015 (4 Years) 2015 (4 Years) 2013 (6 Years) 2015 (4 Years) 2015 (4 Years) 2016 (3 Years) 2017 (2 Years) 2016 (3 Years) 2016 (3 Years) 2016 (3 Years) 2018 ( 1 Year) 2018 ( 1 Year) 2018 ( 1 Year) 2018 ( 1 Year) 2015 (4 Years) 2018 ( 1 Year) 2018 ( 1 Year) 2016 (3 Years) 2013 (6 Years) 1988 (31 Years)
$51,665 - $76,995 $2,783,000 - $4,537,500 $70,465 - $515,050 $35,000 - $265,800 $17,625 - $75,975 $75,188 - $150,763 $239,900 - $619,500 $426,511 - $933,671 $137,700 - $227,500 $42,890 - $60,300 $2,100 - $7,999 $35,000 - $187,100 $34,200 - $179,500 $27,550 - $94,250 $38,220 - $72,235 $111,200 - $187,500 $115,863 - $231,506 $206,570 - $360,225 $63,800 - $125,480 $36,050 - $95,725 $38,925 - $53,225 $91,300 - $208,750 $29,800 - $36,100 $8,660 - $75,150 $17,600 - $27,500 $181,600 - $278,400 $17,200 - $66,000 $23,600 - $51,400 $253,850 - $365,975 $62,000 - $128,500 $40,400 - $185,900 $3,189,625 - $5,298,375 $75,250 - $150,650 $199,000 - $463,500 $40,700 - $110,500 $57,650 - $103,200 $123,000 - $246,100 $204,800 - $296,000 $310,700 - $440,200 $110,500 - $232,300 $35,000 - $59,000 $7,055 - $17,075 $38,350 - $45,700 $131,675 - $241,675 $130,100 - $185,450 $31,104 - $48,500 $152,750 - $399,000 $34,800 - $62,700 $60,000
Dan Herrick Janet Brewer Yumi Ha Beatrice Hair Ann Seggie Melissa Picciotto Rennu Dhillon Thomas J. Boehm Shea E. Snider Tracey Childs Ellie Greenberg Mistie Wisniewski Kendra Randall Jacqueline Pereira Dr. Nicholas LaBozzetta Daphney Aupont Kimberly Smith Jeff Brelsford Allegra Bozorth Lisa Bonito-Tirone Sharon Moore Alex Perez Frances Guiney Leena Tibrewala Radhika Tatineni Andrew Wunderlich Parag Singhal Czarina Boyce Danielle Lindner Ali Pabarja Alejandra Cantu Kaki Reddy Felix Vineeta Bhandari Michael Wujnovich Shamoon Sediguie Ghazal Qureshi Jessalyn Bertone Howard Varnedoe Dr. Kim Southwell Yami Rodriguez Namita Prasad Jennifer Lineberger Susan Caldwell Brad Hare Carole Crocco Jennifer Turliuk Ajay Sunkara David Vinson
(732) 851-4445 (765) 642-0216 (303) 955-1822 (704) 633-8207 (904) 824-3133 (908) 809 2073 (510) 896-8764 (561) 339-9121 (512) 346-3333 (859) 277-2371 (646) 434-1419 (786) 600-1135 (619) 276-3990 (540) 418-0008 (631) 265-8331 (203) 861-1188 (770) 422-3510 (410) 304-2062 (206) 341-9914 (775) 343-5059 (201) 568-2289 (925) 284-1644 (872) 240-4230 (732) 791-4848 (512) 522-0988 (949) 888-4345 (614) 790-1111 (503) 750-4277 (310) 954-9520 (630) 418-8946 (215) 792-3866 (866) 333-6867 (650) 433-1908 (650) 777-5301 (800) 733-2863 (732) 333-8004 (713) 463-5062 (201) 987-9327 (704) 845-2310 (972) 886-5894 (510) 823-0797 (248) 301-0030 (800) 410-1436 (919) 889-2598 (609) 969-1366 (714) 457-2157 (877) 791-5939 (847) 485-0000 (770) 279-7777
www.abovegradelevel.com www.ppchog.org www.mymusicskool.com www.staltd.com www.bricks4kidz.com www.athenalearningcenters.com www.geniuskidsonline.com www.montessorikidsuniverse.com www.foodie-kids.com www.class101.com www.abcdoremenyc.com www.nuttyscientists.com www.brickbybrick.com www.engineeringforkids.com www.aplustutoringinc.com www.freshgreenlight.com www. omegafranchise.com www. tastebudskitchen.com www.bestinclasseducation.com www.chefitupkids.com www.hobbyquest.com www.lafayetteacademy.com www.greenapplestem.co www.mindsahead.com www.bricksbotsbeakersfranchise.com www.teenroadtosafety.net www.academy.agradeahead.com www.little-engineers.com www.daniellelindner.com www.elitetutoringplace.com www.snapology.com www.pinnaclemontessori.com www.thecoderschool.com www.buildingkidzschool.com www.myrobothink.com www.thinkbrainiacblog.wordpress.com www.springbranch.idealabkids.com www.oneriverschool.com www.ivybrook.academy www.readingranch.com www.codefu.co www.confidentlee.com www.kidscancad.com www.flourpowerstudios.com www.golfu.com www.mymusicworkshopforkids.com www.makerkids.com www.bestbrains.com www.kidsRkids.com
DISCLAIMER: Our magazine is not an offer to sell a franchise, and is not directed to any reader to buy any franchises. The companies are not listed by rank. Our team carefully researched the listed information. The company information may chang; please make sure to check and contact the company directly.
JUL-AUG 2019 | FRANCHISE CONNECT 23
3 BEST PRACTICES FOR
Turning Stress into Success
S
of stress leaches away passion, makes you incapacitated, promotes a self-pitying mindset, and makes you weak. It can lead to self-destruction. You can reduce this stress to a healthy level if you take control over your life and focus on the things you love.
tress is a normal part of your job. However, excessive stress can be damaging to your physical and mental health. So what should you do? Use it to your advantage! Since you can’t beat stress, you might as well make the most of it. There are several actionable ways you can Don’t Cry Over Spilt Milk turn stress into success. Take a look below: The past cannot be changed, so there is no use looking over your shoulder and lamenting over events long gone by. The worst thing Identifying Good Stress and Bad you can do is to hold on to past grudges. If Stress A little stress can put you into a fight-or- you feel someone has wronged you in the flight mode, which can rouse you to either past, the greatest form of revenge is to get keep running or tackle the problem head-on. more successful than they are. By looking past petty emotions, you This kind of stress actually helps you to keep moving and prevents you from staying in your become free to go forward with your life and safe zone. It promotes learning and emotional succeed, in spite of negativity. You can start this practice by writing down what things or and spiritual growth. Good stress is something that you need to challenges in the past bothered you. Then let keep fighting for your dream. For example, go of those misfortunes and decide what you if you are opening a new startup, you are want to do moving forward. guaranteed to face a lot of challenges, but they can make you stronger and help you Control Your Thoughts grow stronger as an individual and as a There will always be people and things in your life that will strive to bring you businessperson. The bad stress comes when you don’t down, especially when you are succeedhave control over your life, and everything ing in business and life. You can change seems to be going wrong for you. This kind your reactions to these negative elements 24 FRANCHISE CONNECT | JUL-AUG 2019
and control your thoughts by focusing on your objectives. Don’t let anything derail you. Always remember that you are the leader of your own life and take back ownership. This anxious energy will help support you instead of debilitating you. In business and in life, it is not a good idea to act on impulse. The only thing in your life that you have absolute control over is your thoughts and actions. Always be aware of negative situations that can be damaging to your business, finances, personal safety, health, and emotional relationships. Stress is an inevitable part of life. However, your goal should be to limit it so that it only works as a positive influence. For example, if you have been procrastinating, working on a steep deadline can help increase your performance and productivity. Staying organized, working as a team, making slight changes in your thoughts, and changing some of your perspectives can do wonders to alleviate your stress. This can improve your productivity, make you take joy in your business, and ultimately boost the customer experience. w
“IDENTIFYING GOOD STRESS AND BAD STRESS”
ILLUSTRATION BY TERAVECTOR
By Mary McHugh
Your Trusted Advisor Transforming your commercial real estate needs into a strategic advantage
Oyku Hanna Vice President ohanna@veritycommercial.com Office 703.463.9118 Cell 202.257.2456 Fax 703.435.4650
Proudly Serving Business Owners in the District of Columbia, Maryland, and Virginia
Verity Commercial 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.
Verity Commercial, LLC 1821 Michael Faraday Drive | Suite 208 | Reston, VA 20190 703.435.4007 | veritycommercial.com
BROKERAGE | INVESTMENT | PROJECT M ANAGEMENT JUL-AUG 2019 | FRANCHISE CONNECT 25
AND NOT MUCH OVERHEAD Ask yourself whether an office-based service franchise could give you the lifestyle and financial rewards you seek. By Heather Rosen
Cardiologists and plastic surgeons make lots of money and are in high demand, but not hen people find out that I’m a everyone can afford to go through 8 years business start-up advisor with a of school and 6 years of training before getspecialty in franchises, the ques- ting a decent paycheck, not everyone can or tion I normally get is, “What is wants to work those kinds of hours, and not the hottest franchise out there?” My answer everyone has a steady hand. Different careers usually disappoints them: “It depends.” for different people. Right-brained and leftEveryone knows that this is a typical “lawyer brained people. People who live near corn answer”, because it can’t get you into trouble, fields vs. manufacturing plants vs. technoland you aren’t committing to anything until ogy hubs vs. beaches vs. federal government the client pays your retainer (and maybe agencies. But I can say that after doing this work for not even then). It is, however, the only right answer to that question, because the “hottest” almost 10 years and reviewing hundreds of franchise is really the BEST franchise for you, business models, I’m a little biased towards and what that is depends entirely on what office-based service businesses. I live and you enjoy doing, what your budget is, what work in the Washington DC metropolitan area, you are hoping to achieve with the business, where affordable commercial real estate is and where you live. elusive. When franchisors list the range of And everyone is different. Imagine start-up costs in the Franchise Disclosure someone asking, “What is the best career?” Document, I tell my clients to look at the top
W
26 FRANCHISE CONNECT | JUL-AUG 2019
of that range if they are planning to open in the DC metro area. The market will be a little softer during the next recession, but there is not too much new construction in the area, so real estate tends to be more expensive here than in most other parts of the country. There is also a lot of competition for the best space. It will take most people longer to find available retail space in our area than in parts of the country that are still growing. If franchisees around the country are telling people that it took 9-18 months to find space, I am going to assume that it will take close to 18 months to find space here. As a result, I’ve always been partial to service franchises that do not require a franchisee to rent and build out retail space. The cost of labor might be slightly higher in the DC metro area, but having to pay your staff a couple of extra bucks an hour isn’t going to blow out the core business model the way
PHOTOGRAPHS COURTESY SHUTTERSTOCK
Service with a smile, a purpose…
TAKEAWAYS
having to pay $2000/month more in rent will. You can sometimes offset your increased hourly labor costs by raising your prices by a few dollars, but you will have to make much more radical changes to the pricing structure to cover an additional $2000/month, and you’ll have no idea whether consumers will pay so much more than they do elsewhere. It will be a gamble. But even in markets where affordable space is not as hard to find, service businesses that can operate out of a modest professional office space or a home office often offer the best ROI – return on your investment. Just because you have $700K to invest in a business doesn’t mean that you should, especially if the $700K you were thinking of putting into a drive-through fast food franchise can get you 3-4 territories of a service business, each of which includes several zip codes. You may be able to acquire the exclusive rights to the state of Virginia for the cost of one Burger King. Or the master rights to the entire DC metro area. Investors always consider the outstanding service be recognized by the potential return on the investment. local community, he or she might also be recAnd although people can feel passionate ognized as and be a role model and mentor about a delicious hamburger they once ate, within his or her own franchise. service businesses - such as those that help For all these reasons, you should always kids, pets or the elderly, or are transforma- ask yourself whether an office-based service tional for other businesses – or businesses franchise could give you the lifestyle and with a large service component – such as financial rewards that you are seeking. You customized and installed kitchens, storage might save some solutions, or window coverings - have a much money upfront, make more longer lasting impact on the customer, and can therefore be more rewarding. Even a busimoney each year, ness that cleans the interior or the exterior and have a much of offices can have a significant financial more enjoyable impact on the businesses operating inside run as the owner the building. of one of these businesses. They Perhaps just as important, service businesses provide the opportunity to compete are, however, not based on service levels. A business owner easy to find precan often outshine the competition based cisely because they do not have a retail space. on service levels alone. Also, service busi- One way to find them is by looking at some nesses often provide more opportunities for of the “best franchises” surveys out there, and employees to distinguish themselves and if the total startup cost is $100K or less, it’s advance. Customers are more likely to com- probably a non-retail service business. These ment on the quality of service they received “under 100K” lists, however, won’t include than about a product that can be purchased some of the service businesses that operate in more than one location. Not only might a out of more expensive office spaces. There franchise owner who receives accolades for are some that are closer to $200K.
“I RECOMMEND TALKING TO A FRANCHISE INDUSTRY EXPERT ABOUT WHAT IS AVAILABLE. "
I recommend talking to a franchise industry expert about what is available. Make sure the conversation starts with you and your goals and that no businesses are recommended to you until your advisor fully understands who you are and where you live. Your advisor should be open to your suggestions, but remember that a good coach will challenge clients. You should feel like you are working with an experienced career counselor who is asking the right questions to understand you and guide you based on your unique skills, needs, and wants. Which advisor is the best one for you? It depends! But years of experience matter, and the franchise vetting process (or lack thereof) matters. If possible, try to work with someone who knows your local market or who is willing to work in conjunction with someone who does. w Heather Rosen is a former lawyer and business advisor who has spent the last 10 years helping people make the transition from employee to business owner, safely and affordably, utilizing FranNet’s time tested assessment tools and search methodology and up-to-date industry data. She is also the co-author of the Amazon bestselling book, More Than Just French Fries. Have a question or need some help? Heather can be reached at hrosen@frannet.com.
JUL-AUG 2019 | FRANCHISE CONNECT 27
WHAT TO CONSIDER WHEN INVESTING IN COMMERCIAL REAL ESTATE By Sara Jensen
I
f your startup or small business is in the process of expanding, it will need a bigger space. Choosing the location for your growing business is not at all easy, and in today’s economy, deciding whether to buy or rent a property is doubly difficult. There are many small things that business owners need to consider when they want to invest in a commercial property. To help you decide, you need to take into account the dynamics of leasing vs. buying commercial real estate and take a look at their pros and cons.
Often, your mortgage payment will be significantly lower than what your monthly rent would cost you.Additionally, you will be paying to own the property—not just to use it.
Here are some of the advantages of buying a commercial property rather than leasing one:
Fixed Overhead: Owning your commercial property means you have some control over your future costs. Unlike lease costs, mortgage rates do not fluctuate frequently and have been declining for several years now. By buying the property, the real estate component of the overhead is fixed for the duration of the mortgage period. In contrast, if you are renting a business, cost is affected by upgrades to the building, fluctuating real estate market demand and supply, and other economic factors. Hence, you have no guarantee that you will be able to renew the lease of the building on the same terms once the current lease expires.
Low Financing Costs: With current steady interest rates, you can take advantage of the low mortgage rate to buy your own property.
Greater Control: Buying a commercial property can give you the chance to renovate your property without landowner interference. You
PROS OF INVESTING IN COMMERCIAL REAL ESTATE
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can also decide to change your business hours. In a rental building, you will need to get the permission of the property owner before you can make these changes. Most of the time, once your lease expires or you need to move out, the owner may also demand that you leave the property in its original condition. This can be extremely difficult especially if you’ve done extensive renovations. Brand Recognition: If you want to open up your franchise and establish a brand, it is a good idea to purchase a property to run that business. Once you own the property, you can decide to stay at the place for an extended period of time so that people will know your brand based on your location and space. This way, once customers visit your business, you can retain them by not moving to another location. Location: There is a reason why location is of paramount importance when it comes to businesses. Often fast food franchises open
PHOTOGRAPH BY BRUCE EMMERLING
Should You Buy or Rent Your Place of Business?
COMMERCIAL REAL ESTATE
up their stores right next to their competitors because the area draws more human traffic. If you have found a winning location, you wouldn’t want to give it up because the rent is too high or the owner wants the property vacated for another use. If you buy a property, you won’t have these issues. Tax Savings: If you choose to buy a property, you won’t be able to benefit from tax deductions that you would if you were on rent. However, you may still be able to use tax deductions from associated costs like property taxes and interest on mortgage. Depending on how long you have been in the business, how much revenue it makes, and what portion of the buying price or rent is related to the land rather than the building, buying real estate instead of renting can cut your tax bill significantly as compared to a lease. Value Appreciation: If you find a great property that is on sale at a great price, it may appreciate in value in the future. By buying the property, you can upgrade it, which will increase its selling price. This can benefit you in the future. Additional Revenue: Buying a commercial property is even more lucrative if you want to use only a portion of the space. You can use the extra space to lease it out to someone else and earn a rental income. This can help you pay your mortgage. PROS OF LEASING A COMMERCIAL PROPERTY
While there are many benefits to buying commercial property, there are also several limitations: Large Investment: As a startup, your cashflow is of vital importance in the initial years. You may not want to invest huge amounts of money in buying a property rather than investing your capital to grow your core business competencies. Buying a property requires more capital up-front in the form of a down payment and other charges. Moreover,
many lenders may
“THERE ARE MANY be unwilling to SMALL THINGS THAT give you a loan if your business is BUSINESS OWNERS in its early stages. NEED TO CONSIDER Therefore, in this leasing may WHEN THEY WANT case, be your only choice. TO INVEST IN A Additional COMMERCIAL Expenses: You may PROPERTY. " also need to make some changes or repairs to the building after you have bought it, which can cost you. When you rent a property, the property taxes, security, parking, repairs and maintenance, and insurance are all included in your lease agreement, and you don’t need to pay for them separately. However, if you buy a property, all of these become your sole responsibility. Hence, any decision to buy or lease a property should be weighed side by side. In many cases, the renewal of a lease can actually benefit you during periods of low occupancy and low demand. In this case, you may be able to negotiate lower rent rates with your property owner.
You Want To Move: Buying a property is not a great idea if you intend to move a few months or even a few years down the road. Maybe you are not certain if the location suits you, if the building you buy can cover all your needs in the future, or if you will require more or less space. You may also suspect that your customers may leave for another location. In these cases, renting a space seems like a better option. Declining Real Estate: This can happen when you find a property that fulfills your business needs, but it is in an area where real estate values are either stagnant or may fall in the future. In this case, leasing makes more sense. As an entrepreneur, deciding how to invest in your office space can be very challenging, but if you evaluate your market and your finances carefully, it can help you make a decision that is profitable in the long run. When making any real estate decisions, make sure you always have a qualified realtor with experience in commercial real estate, a real estate lawyer, a mortgage adviser, and an accountant by your side to ensure that you make only the best decisions. w JUL-AUG 2019 | FRANCHISE CONNECT 29
Good Businesses DOING GOOD THINGS The education and children's services market has quickly become a massive market segment in small business globally creating opportunities in virtually every market around the world. By Christopher Conner
PHOTOGRAPH COURTESY SHUTTERSTOCK
T
30 FRANCHISE CONNECT | JUL-AUG 2019
here are so many ways to make money in the world. Heck, with technology and social media, people are making money doing things that don't even come close to making sense. But that's the fun of entrepreneurship and small business. The possibilities are endless. Many businesses come with a cost that is related to good will, integrity, and moral character, and although they make money, they take a certain fortitude to be able to do day in and day out and still sleep at night. I'm talking about businesses such as check cashing businesses, high rate lending businesses, quick refund tax processing businesses and industries like these. Yes, you can do very well financially, but can you sleep well at night? The education and children's services market has quickly become a massive market segment in small business globally creating opportunities in virtually every market around the world. With this growth in the overall market segment, the franchise industry has seen an enormous rise in brands that focus on education services and products. And guess what, in the education and children's development market, you can feel GREAT about what you do every day. Franchise Marketing Systems is a franchise development firm that supports new
EXPERT ADVICE
franchise brands in coming to market and growing through franchising. In recent years, the volume of new education franchise models has been nothing short of staggering in sheer numbers and levels of success for most of these brands and business models. The businesses are innovative, many times are a lot of fun, and offer franchisees a quality of life that few other industry segments can offer. Ultimately, today's consumer is driven to provide the best possible education, life, and future for their kids, and they are willing to empty their wallet to make it happen. Montessori is a great example, where in 2019, several new Montessori franchise systems will be taking flight, and in schools where the monthly cost to attend would be considered high for most families, they can't open locations quickly enough to satisfy the demand. Learning for Life Montessori is a new franchise system that just launched the platform after having spent years in the field and developing a unique, effective, and wonderful schooling methodology under the Montessori model. The Houston franchise system will take to market this year, and current plans focus on Texas People who invest in children's education initially. Curie Learn- and development businesses typically have ing, a STEM-based a passion for working with kids. They like franchise system out that their work translates to helping children of Virginia, launched grow and develop and enjoy working in the its franchise pro- field. When you can have fun doing your gram in 2017 and work, the business tends to be successful has sold 16 franchise ,and you go home happy every day. Next, units in high-profile let's look at today's household and the parmarkets around the ents who are doing the spending. There is a U.S. Nexplore, a massive race to the top in today's education children's after-school program franchise market, and parents are desperate not to recently pushed into growth mode after have their kid left behind. This fuels spendrecognizing the national demand for the ing in all areas of education where parents proprietary learning system created by Dori are investing in what they believe will help Larea. The list extends into so many different their child get into the right college and land segments of education services and prod- the best possible job. Many households are ucts, one could create a long list of franchise dual income and have the disposable income, opportunities. but not the time, a perfect combination for In looking at the why, first let's start with children's service providers. Finally, look at the lifestyle side of education franchises. the education franchise market. There are
"THERE IS A MASSIVE RACE TO THE TOP IN TODAY'S EDUCATION MARKET AND PARENTS ARE DESPERATE NOT TO HAVE THEIR KID LEFT BEHIND. "
countless options for franchise investments. Vortex Academy has a focus in martial arts education, Knack DIY in crafts, and Mt. Playmore in fun and fitness. A franchisee can find investments in the children's franchise market that range from the tens of thousands to the millions and offer some of the strongest ROI's for any business segment in franchising. The timing couldn't be better if you enjoy working with kids and are considering starting a business. w Christopher 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 www.FMSFranchise.com
JUL-AUG 2019 | FRANCHISE CONNECT 31
DO THESE 3 THINGS FOR BETTER
Decision-Making By Melissa Kazanci
W
e face challenging decisions every day in both our personal and professional lives. To make good decisions, we need to think logically with a clear mind and ask ourselves better questions. If you are on the cusp of making a big decision, here are a few rules you should follow:
Clarify Your Goals
The first thing you need to do is to find out what your purpose is and what you want to achieve from it. Knowing why you are making a decision does not just prevent you from procrastination, but also fires you up to take action that leads to concrete results. However, make sure your goals are achievable. Studies show that overconfidence can lead to errors in judgment and can also make you lose sight of your goal. If, for example, you believe that making choice A will lead to outcome B, the probability of that is actually slightly less than what you think. Once you know that you are overconfident, you can once again revisit the logic of your decision and then decide whether you can successfully achieve it. This can also help you think about an outcome that is drastically 32 FRANCHISE CONNECT | JUL-AUG 2019
different from what you think might happen and help you prepare for it.
Create a Concrete Strategy
Once you have clarified goals that are realistic, move ahead and build strategies to achieve them. To do this, you will have to go back to the outcomes you identified in the previous step. Each of the outcomes will require certain tactics that will help you achieve your goal. For example, if your business needs to sell 50,000 units of products in the first month, you need to come up with tactics like email, social media marketing, and push tactics to achieve your goal. However, while building a strategy, don’t forget to identify your risks. Sometimes you make poor decisions because you have become accustomed to some of your habits or have developed some beliefs that do not serve you well. Clinging to these can cause more harm than good.
WHATEVER YOU DO, JUST MAKE SURE IT ALIGNS WITH YOUR BUSINESS GOALS AND HELPS ELEVATE YOUR CORE STRATEGY.
To make good decisions, we need to think logically with a clear mind and ask ourselves better questions. To challenge these beliefs, you must try to do something that’s the exact opposite. If you are convinced that you should not run a marketing campaign for your new franchise, argue all the reasons why you should. Only by evaluating both sides of the scenario can you come up with a concrete strategy that has a chance of success.
Take Action
All your planning and strategizing will be for naught if you do not take immediate action. Acting quickly can help your brain understand that you are serious about your idea, and it shifts you into a full-blown decisionmaking mode. Instead of delaying doing things and just talking to yourself about what you will do, take bold actions that will help you implement the first of your tactics. In the case of your business, it could mean releasing a teaser billboard about a new product that generates hype. Whatever you do, just make sure it aligns with your business goals and helps elevate your core strategy. So, do you think you are up to making a real decision? If you follow these few basic core steps, you can be successful in making good decisions in both your personal and professional life. w
JUL-AUG 2019 | FRANCHISE CONNECT 33
THE FAB FOUR The Four Dominant Franchise Industries By Holly A Ford
T
he collective genius of The Beatles created arguably the most influential musical group of our time. The Fab Four’s dominance could not have emerged, however, without the individual genius of each member. John Winston Ono Lennon, Sir James Paul McCartney, George Harrison, and Sir Richard Starkey were each powerful individuals that gifted unique, extraordinary contributions to the Beatles. Lennon's leadership and arrangements; McCartney's songwriting and selftaught proficiency on piano, drums, guitar and of course bass; Harrisons infusion of the Maharishi teachings; and Starr's open hi-hat and four-to-the-floor bass drum each added unique dimensions to the Fab Four. Franchising's recent powerful growth can be attributed to four unique industries that dominate the field. Dominance here is not defined as the most popular. Dominance for our purposes is defined as industries that will create business wealth in franchising.
The first dominant franchise industy is Senior Care. For the next two decades
10,000 baby boomers will retire each day. Even more astounding, the American senior population will double within the next 25 years. Massive technological advances have 34 FRANCHISE CONNECT | JUL-AUG 2019
PHOTOGRAPH COURTESY TIM MOSSHOLDER
for the franchisee - making the opportunity for professional services a powerful vehicle for creating wealth.
and will continue to assist seniors, such as innovations that can read and respond to human emotions, hybrid-assisted limbs, and even a therapeutic baby seal robot for the memory-impaired that reacts to touch, plays games, and even dances with seniors. But none of these advances can help if there is not strong care. Franchises that provide community assisted living, home care, transportation, and location advisors are growing and are very profitable.
The second dominant franchise industy is Professional Services.
Although both professional and personal services generally have high margins due to low overhead and consumer-driven pricing models, professional services have a higher retention rate, higher price point, and higher returns. Professional services include such businesses as accounting, staffing, direct marketing, cleaning, maintenance, and even specialized training. Basically, they can be any organization or profession that offers customized, knowledge-based services to their clients. Due to the knowledge, and or expertise, required by the majority of these services, clients often shy away from these opportunities. However, in the world of franchising, a strong franchisor will train the owner, assist in the hiring process, and even generate leads
The third dominant franchise industry is Food & Beverage. This is not just for the sheer volume of choices, but also because it is somewhat recession proof. More important, food and beverage is a relatively simple way to create wealth through multiunit ownership. Once you reach break-even in a restaurant, the concept can then be replicated multiple times. This replication lowers expenses with regional managers replacing local ones, adds geographic security should a demographic or economy change affect one of the units, and of course adds greater profits.
And the final Fab Four franchise Industry is Health and Fitness. Inter-
estingly, 134 countries have laws setting the maximum length of weekly work, but not the US. Here Americans work 137 more hours a year than the Japanese, 260 more than the Brits, and 499 more hours than the French. This poses the question: Does work lead to increased stress? The professionals say "yes" and have documented stress as the number one cause of health problems. To alleviate these stress and health issues, 30 billion dollars a year is being injected into the health and fitness industry. It is, and likely will be in the extended future, an excellent time to invest in one of the dozens of health and fitness franchises. So, in recap - The Fab Four - the four dominant franchise industries are senior carewhich will continue its upward trend over the next several decades; professional services - which afford very high margins; food and beverage - which offers strong replicability and investment protection; and health and fitness-which will continue to explode as the competitive index grows in America. w Holly A Ford is the founder and CEO of international business brokerage Zarian Firm and author of best-selling book Create Your Own Wealth - A Collection of 2-Minute Topics on Franchising. Ford is a member of the Forbes Communication Council, contributor to 12 publications, and co-host of blog talk radio show, Pillars of Franchising. Ford's mission to "Empower Humanity with Creative Force" has ignited an initiative to leverage franchising world wide as a social entrepreneurial catalyst for global change.
Your franchise and business opportunity resource! Are you considering owning your own business or franchise and not sure where to start? Franchise Search Partners, LLC provides franchise consulting services to assist you in making the best decision in buying a franchise or business opportunity. Our services are free to our clients, as they are paid by the franchises we represent. We represent over 500 of today's leading franchise opportunities and are well known in the industry for our professional approach by our franchise partners. With so many franchise opportunities available today it is much easier to choose the wrong franchise than the right one. Our primary goal is to help you navigate through the entire process and build a business for you and your family’s future.
Jason Blough, CFC | Managing Partner (240) 446-6413 Call/Text www.FranchiseSearchPartners.com jason@franchisesp.com SCHEDULE A CALL WITH ME:
jasonb.youcanbook.me
Is Franchising Right for You?
Do you REALLY believe that you are ready and willing to take expertise, experience, and guidance from others? If not, DO NOT become a franchisee. By Freddy O’Pry
F
PHOTOGRAPH COURTESY BRUCE MARS
ranchising can be defined as a business relationship which continues for a defined length of time (usually 10 years initially) whereby a business, called a franchisor, which owns
a particular business brand (a franchise), licenses a person, group of people, or a partnership or corporation to use that brand in different geographical locations during the initial term and perhaps beyond the initial term in the form of a franchise license renewal.
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The franchisor has developed a business model which they believe can be replicated by franchisees (those the franchisor had granted [sold] one or more of their franchise licenses to) in exchange for a franchise fee (the initial cost for the use of the Franchisor’s business model). Franchisees are contracted, trained, and supported by the franchisor in site selection, building out of a particular location (unless the franchise can be operated as a home-based business), the purchase of materials, equipment, and items necessary for the franchised unit to be opened in accordance with the requirements of the franchisor.
WHY PURCHASE A FRANCHISE?
Typically there are only a few ways businesses are started and operated. These normal methods are as an independent business, as a licensee, or as a franchise. The problems of starting a business from scratch are the high failure rate of such
PHOTOGRAPH COURTESY RAWPIXEL
WHAT IS FRANCHISING?
TAKEAWAYS
HAVE YOU RESEARCHED ACTUAL SUCCESS RATES OF FRANCHISES AND FAILURE RATES OF BUSINESSES WHICH ARE STARTED FROM SCRATCH?
PHOTOGRAPH COURTESY ARTEM BELIAIKIN
businesses caused often by a flawed business model, lack of sufficient experience by the business owner operating such a business, or insufficient working capital (cash, primarily) required to keep the business afloat financially. Most individually owned businesses involve a great deal of trial and error, costly mistakes, and in many cases, failure. However, acquiring a franchise is a way to benefit from the franchisor’s own trials and errors, determination as to the amount of working capital required, the best locations to operate such a business model, and other details, which are made available to the franchisee by the franchisor. Such details serve to greatly increase the likelihood that the franchise will be a successful business IF the franchisee operates the franchise the way the franchisor requires. So, in exchange for payment of a franchise license fee and ongoing periodic (usually weekly) royalty fees, which are calculated as a set percentage of a periodic gross revenue of the franchise, a franchisee who operates the franchise as taught by the franchisor has a high likelihood of business success, unlike start- IS FRANCHISING RIGHT FOR ing a business from YOU? scratch does. There are several ways to answer that Additionally, question. Are you able and willing to there are great ben- follow the business requirements of efits and strength others? Do you believe, “If it’s not your in having multiple way, it can’t be the right way”? Are you franchisees share in likely to be a “pain where the franchisor common problems doesn’t need another pain”? Can you get and solutions. Economies of scale can be along well with fellow franchisees? realized by agreements the franchisor has Have you researched actual success made between it and suppliers of goods, rates of franchises and failure rates of busiequipment, and services. nesses which are started from scratch? Do Finally, franchises have long ago you agree that franchise license fees, royproven to be well worth the cost of open- alty fees, and other expenses of owning a ing and operating a franchise whose fran- franchise are well justified? Do you know chisors are financially strong, credible, how much easier it is to borrow money and offering a sound business model that for a franchise instead of a business that is started from scratch? can be replicated geographically.
In the end, the decision as to whether a franchise is right for you needs to be made by careful analysis of the benefits of franchising verses starting a non-franchised business. And finally, do you REALLY believe that you are ready and willing to take expertise, experience, and guidance from others? If not, DO NOT become a franchisee. If so, welcome to hundreds of thousands of other people worldwide who have found franchising to be one of the best decisions they have ever made in business and in their lives. 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 (281) 342-7474 or at freddyopry@ franchisedevelopment.com.
JUL-AUG 2019 | FRANCHISE CONNECT 37
Having It All with a Home-Based
CHILDREN’S EDUCATION FRANCHISE I wanted to be home with my baby but also have a career. Owning my franchise for 9 years allowed me to do just that and do it quite well! By Linda Schaeffer
PHOTOGRAPH COURTESY SHUTTERSTOCK
I
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owned my first children’s education franchise when I was just 26 years old. Looking for work-life balance with a new baby was my driving force. I wanted to be home with my baby but also have a career. Owning my franchise for 9 years allowed me to do just that and do it quite well! Later in life, after my third child, I would re-enter the world of franchising and again choose to do so in the children’s education industry. Today I am fortunate to work with candidates who are looking at franchising as a potential fit for their own life goals. They often ask, “Linda, why were both of your franchises in the children’s education market?” When I think about that, the answer comes naturally. I enjoyed building businesses in my community that brought exceptional programming to children. The fact that I could work from home and the total investment was under $100K was a bonus! Parents will never stop spending money on their children’s education. Statistics show that almost 60% of school-age children participate in after-school activities. That’s a lot of great children’s programming needed! Whether it be in tutoring; art education; science, technology, engineering, and math (STEM); music; or fitness, the opportunities are plentiful. A day in the life of a children’s education franchise owner is multi-faceted. For many of
EXPERT ADVICE
our top children’s education franchises, programming happens after school ends. Owners use the hours while children are in the classroom to do their marketing and community outreach. This is the time when you hire and train your teachers and work on your business. The hours after school, evenings, and possibly weekends are when your teachers will offer your programs. The general work ethic of teachers is another great reason to own a children’s education franchise. There are very few employees more passionate about their job or more loyal than teachers. The first teacher who worked for me continued with
"STATISTICS SHOW THAT ALMOST 60% OF SCHOOLAGE CHILDREN PARTICIPATE IN AFTER-SCHOOL ACTIVITIES. THAT’S A LOT OF GREAT CHILDREN’S PROGRAMMING NEEDED! "
me for all 9 years I owned my first franchise. One of the teachers that worked for me in my second franchise bought my franchise from me and is still operating it today. Finding great part time teachers to offer your programming can be easy! Your pool of employees is the retired or current teacher looking for some hours, the education major looking for classroom experience, and even the stay-at-home mom with a passion for your program. What’s the value in the franchise system? In education franchises, the franchisor has fine-tuned the programming and put systems and processes together to allow franchisees to be successful. In most cases, there are curricula that are changing and being added to keep content fresh and relevant. In the case of an afterschool art or STEM program, every year programs must be added so that a child once enrolled can continue for years and years. In a tutoring concept, technology must be developed and maintained so that tutors and lessons can be tracked and monitored. This is not an industry where someone can do it themselves. A successful owner of a children’s
education franchise will need the following qualities: 1. Wants to be a presence in their community 2. Desires to make a difference in the lives of children 3. Is disciplined and able to work from a home-based office 4. Is able to follow a proven system and processes 5. Is able to manage a team of teachers, and 6. Is a “Societal” on the Zoracle Profile. Take ten minutes, and fill it out! www. zoracle.net/assessment/welcome/ franchise-advisors If you’d like to explore children’s education franchises with me, please email me at Linda@ thefranchiseconsultingcompany.com. Linda Schaeffer attended Babson College in Wellesley, MA, as well as Rider University in Lawerenceville, NJ. She graduated with a bachelor of science in commerce with a major in accounting. Linda resides in center city Philadelphia with her husband of 33 years, Scott. They enjoy spending their summers at the Jersey shore with their three children, spouses, and granddaughters Lily and Emma.
JUL-AUG 2019 | FRANCHISE CONNECT 39
COMPANY PROFILE
Incredible Educational Franchise Opportunity Making Science & Engineering Fun for Students After-school programs are one of the fastest-growing industries in the nation. According to Marketresearch.com, over the five years to 2018, the number of students participating in after-school activities has risen due to increased demand and over the five years to 2023, industry revenue is anticipated to continue growing. Furthermore, according to data from the Afterschool Alliance regarding parents who have a child in an after school program: • 77% agree that afterschool programs help children gain teamwork, leadership, and critical thinking skills • 88% agree that afterschool programs help develop children’s social skills Stemtree franchise presents a K-12 educational business opportunity to be a part of this growing multi-billion dollar after-school industry. Stemtree’s focus on science, technology, and engineering aligns with today’s nationwide emphasis on STEM: Science, Technology, Engineering, and Mathematics. In comparison to other STEM centers, our K-12 Stemtree education goes deeper and broader. Stemtree’s unique education model offers each child a self-paced, customized program which allows them to become confident and capable in a less intimidating, yet fun environment. Our highly structured curriculum not only incorporates STEM activities/experiments but also teaches the principles of science and engineering behind these activities. We are currently the ONLY franchise that offers a complete curriculum for each of the following workouts: • Science by grade level and high school Biology, Chemistry, and Physics • Coding • Robotics • Electricity & Electronics
®
Stemtree’s unique concept and perspective on the marketplace has prepared us to expand our franchise at a rapid pace. Our business model is structured to support the industry influx, allowing for new Stemtree franchisees to start generating quicker returns. The Stemtree support system is consistent throughout the lifetime of our partnership, and we assist you in every step of the way. If you have a passion for helping others and improving lives, then owning a Stemtree franchise would be one of the most rewarding franchises available. Stemtree franchise system offers you an opportunity: • To Inspire Children • Access our specialized Turnkey Curriculum • 365 Potential Revenue: In-center & out-center enrollment plans throughout the year • Training and Support • Highly Structured Curriculum • Unique Education Model
STEMTREE FRANCHISING, LLC 220 Maple Ave, West Vienna, VA 22180
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+1 (877) 200-STEM (7836) franchise@stemtree.com www.stemtree.com
COMPANY PROFILE
Green District Salads Revolutionizes
The Fast Salad Franchise Space
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Changing the world one salad at a time orget salads as a side dish; at Green District, they’re the main course. The popular gourmet chopped salad shop offers eleven signature salads and wraps filled with combinations of nearly fifty different ingredients and toppings- including freshly chopped fruits and vegetables, and lean, fresh protein selections! Green District Salads’ flagship location in the St. Matthews community of Louisville, Kentucky, opened in June 2017 and has generated local buzz, quickly becoming a staple for lunch and dinner. Due to popular demand, a second location opened in Louisville’s downtown district in December 2017. Armed with knowledge and experience, Green District’s partners have set their sights on expanding the business through franchise opportunities. The Green District business model is poised for growth, with a proven track record of success and a highly-skilled operations and management team with diverse backgrounds. Green District locations are easy to operate and require only a small, but well-trained staff. From a franchising perspective, Green District Salad is a highly profitable quick-service restaurant serving healthy and fresh salads with a broad, loyal customer base! The entire menu is prepared fresh in-house daily. Each location requires a small footprint with low cost of goods and labor resulting in a financially rewarding business with unparalleled profit margins in the restaurant industry.
“We are passionate about eating healthy at Green District Salads. For too long, communities have been unable to access affordable, fast, AND healthy foods. The goal since day one has been making sure that we are providing the kind of food we crave ourselves.” - Chris, Co-Founder
GREEN DISTRICT SALADS 225 South 5th Street Louisville, KY 40202
(812) 989-8086 jason@franchisesp.com www.gdsalads.com
JUL-AUG 2019 | FRANCHISE CONNECT 41
COMPANY PROFILE
Get In on This Booming Industry Sports Nutrition Authority
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re you READY to join the Nutrition Revolution? Want to be involved in a “feel good” business? Come and join us at Sports Nutrition Authority. You will be part of a ground-floor opportunity in the health and fitness industry. Sports Nutrition Authority offers a low initial investment to franchise and operates under the parent company, Next Level Sports Nutrition. Over the last 3 years, the business has seen rapid growth, opening 4 corporate stores since opening in April 2016. The health and fitness franchise industry has benefited from increased interest in healthier lifestyles. In the current market, North America occupies the largest share of the market share at 47%. This is based on a high obesity ratio and health awareness among people. We offer a grassroots start up, niche market, protected territories, protected products, exclusive brands, support direct from the founders, competitor proof versus Internet, unit and regional development opportunities, and proven 3-year growth and success from corporate stores. Sports Nutrition Authority has developed strong relationships and partnerships with the leading national/ worldwide manufacturers that offer best in-class/ innovative products. This sets you up for success. By aligning with the best possible affiliates, we’ve gained a top-notch reputation in the industry. Sports Nutrition Authority will help you learn about your lifeline – your customers. Success starts with building relationships with customers. The founders will teach you the “customer experience”
model. This is the key to the success of the brand. Tools for success will be provided through an initial and on-going system training, exclusive supplier agreements, exclusive markets, continued support, and potential for multiple revenue streams. An ideal candidate for Sports Nutrition Authority has a passion for health and fitness, an entrepreneurial attitude with managerial experience, leadership skills, and is dedicated to maximizing their investment. Our model is scalable, allowing for an individual owner or multi-unit investor. Total investment to begin operations ranges from $100,950 - $187,075. We offer reduced franchise fees for multiple units, and we are PROUD to offer current and honorably discharged US military veterans a 10% discount on all franchise fees. Get a piece of this growing industry, and get started with Sports Nutrition Authority.
SPORTS NUTRITION AUTHORITY 13401 Shelbyville Rd. Suite 103 Louisville, KY 40223
42 FRANCHISE CONNECT | JUL-AUG 2019
(404) 247-9328 jason@franchisesp.com www.sportsnutritionauthority.net
COMPANY PROFILE
The Least Lawyer Law Firm Around Atypical Lawyers Working for Small & Medium Business Owners
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e are not your typical law firm, and I am nowhere near your typical lawyer. We represent small and medium sized businesses, from a person with a business plan and a dream to companies that have been in business more than 20 years. We work with clients where they are, whether they are acquiring a business, have multiple years operating a business, or they are in the process of selling the business. We advise clients on all aspects of business management, from contracts to employment law, from registration to copyright and trademark protection. We work with clients in a wide variety of industries including creative and marketing businesses, medical practices and health care compliance, skilled trades, technology, and franchise businesses. Our attorney advisors all have experience owning and operating non-legal businesses. We know what it is like to worry about costs, making payroll, employees, sales, marketing, and customer service. What we do is a little unusual, but how we do it is radically different than the vast majority of law firms you have ever experienced. We prefer to work with clients in an outsourced general counsel model. The three features of our General Counsel Services Plans are: 1. A Fixed Monthly Fee. The hardest thing for small business owners is to see their legal bill fluctuate wildly. 2. Meterless Communications. We want, we need our clients to email, call, and meet with us. General counsel clients don’t get billed extra just because you are asking us questions. 3. Design Thinking Principles. We use design thinking principles to work through both legal and non-legal
problems. As general counsel, our mission is not just to solve legal problems but also help improve your business. Our core principles reflect the value we place on long-term relationships with clients. We believe the most important person in a law firm is the client, and we have built our culture on ensuring a positive client user experience. We believe in price transparency. We expressly reject the notion that an hourly billing rate is the best or only model. Unlike most law firms, we put prices on our website. We believe in helping our clients deal with their problems. We are not a “break it, fix it” law firm. Our role is to help clients deal with the root cause of problems, not just solve the problem over and over. We believe in plain communication directed at the questions or problems you have. No matter what stage of business or type of business you are in, we are ready to stand by your side and help you achieve your goals, and maybe make a dream or two come true along the way. We would love to chat with you and see how we can help you. Visit our website at www.mattthelawyer.com to schedule a consult or ask a question.
LAW OFFICES OF MATTHEW S. JOHNSTON, LLC 122 E. Patrick Street, #103 Frederick, MD 21701
(240) 415-8425 matt@johnston-legal.com www.mattthelawyer.com
JUL-AUG 2019 | FRANCHISE CONNECT 43
COMPANY PROFILE
Poke Burri Leads the Poke Revolution Atlanta’s Favorite Poke Goes Viral Across The Country
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oke Burri started in Atlanta in 2017 and has become the most award-winning poke restaurant in the country. Poke Burri combines traditional Hawaiian and Japanese cuisines with a twist. Poke Burri is known for its poke and sushi burritos but also has creative and innovative dishes like sushi pizza, sushi corndogs, sushi donuts and even tempura fried bacon. In a short time, Poke Burri has become Atlanta’s highest rated poke, highest rated sushi, highest rated restautant on Uber Eats, second highest rated restaurant in the whole city, and is currently undefeated in over 47 food competitions, awards, and festivals. Poke Burri started with a hole in the wall and now has 2 locations open with 12 more locations set to open in 2019 to 2020 across the country. In this time, they have become more than just an award-winning restaurant but an award-winning business and franchise. Owning a Poke Burri has low start-up costs, small footprints, low overhead, easy turnkey operations, and high profits, and it comes with the strongest food marketing in the poke industry.
“The goal at Poke Burri has never been to be a big company or a corporate chain but to be the best poke in their city and to be the cult following brand for quick, delicious, exciting, and photogenic food. As we expand throughout the country we are looking for franchisees and partners who really believe in our mission and can stand behind what we do.” - Seven Chan
POKE BURRI
2678 Flat Shoals Ave. SE Doraville, GA 30340
44 FRANCHISE CONNECT | JUL-AUG 2019
(917) 416-0738 jason@franchisesp.com www.PokeBurri.com
COMPANY PROFILE
Come Experience the Coolest Franchise Around Icebox Cryotherapy
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cebox is an innovative concept in the fast growing health and wellness industry. We have provide top-of-theline service in a fun, modern environment with cool services. Inside our modern studios, something amazing is happening. With our fun atmosphere, highly trained staff, and the best equipment in the industry, we push past the norms of a typical wellness studio and deliver the Icebox, customercentric, best 3 minutes of your day, cool experience. From athletic performance, pain management or overall health and beauty, Icebox can give you the best innovative cold therapy experience. We do cold really well! Whole Body Cryotherapy was originally designed as a treatment of rheumatoid arthritis and inflammatory joint diseases. Proving extremely effective, whole-body cryotherapy quickly gained notoriety for that specific issue, but also to treat systemic inflammation throughout the body that can be beneficial for athletic recovery, pain management, and beauty and wellness. Cryotherapy is a modern take on the traditional ice bath and involves exposing the body for 3 minutes to ultra-low temperatures ranging from -120C and -160C. With whole body cryotherapy, chronic in-
flammation is reduced and circulation is improved, reducing pain and promoting an overall better health. From athletes to beauty queens, Icebox can help you be the best version of you! Icebox services are whole body cryotherapy, localized cryotherapy, cryo-beauty services, and other complimentary add ons. Why Icebox? No category leader, sophisticated modern design, recurring revenue core, proven and committed corporate leadership. We provide a simple service menu with a risk-free monthly membership. Currently offering single unit and area representative opportunities nationwide.
ICEBOX CRYOTHERAPY
3872 Roswell Road, A2 Atlanta, GA 30342
(404) 247-9328 jason@franchisesp.com www.iceboxtherapy.com
JUL-AUG 2019 | FRANCHISE CONNECT 45
COMPANY PROFILE
Dive into a Successful Home Service Franchise
The Nation’s Most Recognized Swimming Pool Franchise
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t ASP – America’s Swimming Pool Company, we have made a splash in the pool franchise industry. Traditional mom-and-pop pool companies are notoriously hit or miss in terms of the level and quality of service delivered. That’s why we created America’s Swimming Pool Company—a company that is known for its technology, knowledge, higher standards and relentless pursuit of excellence. Since our founding, we have been nationally recognized as an industry leader, as well as a best-inclass franchise company. ASP has regularly been featured on Entrepreneur’s Franchise 500 and publicly recognized for our leadership, performance, and growth. Individuals looking for a recurring revenue business model with a trusted pool service franchise benefit from our world class support and reputation. Even those with little to no prior ex-
perience in the pool industry can thrive using our proven systems and successful business model! At ASP pool service franchises, we use a turnkey system that allows new owners to start on the right foot. Our tested and tried methods target new customers, market in the right regions, and create multiple recurring revenue streams. We have even developed our very own custom software called PoolOps. Why Consider ASP? • National company with local presence • Multiple recurring revenue streams • Services that are in demand year round • Truck-based business, not retail • Simplicity of the business model • Trained and experienced system of owners and technicians • Home based • No identifiable brand winner currently in the market • Opportunity to partner with major national companies If you’re ready to take the first step, contact us today!
AMERICA’S SWIMMING POOL CO. 3986 Lake Street Macon, GA 31204
46 FRANCHISE CONNECT | JUL-AUG 2019
(410) 910-9341 jason@franchisesp.com www.aspfranchising.com
COMPANY PROFILE
Become Your Community’s Authority on Cleaning Providing a Simple Service that Every Home Needs
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re you looking to achieve new financial success by owning a scalable business that carries expansion potential? Have you ever considered turning to the cleaning industry to find your success? Probably not! Neither had most of our franchisees, and they were happily surprised once they took the time to investigate The Cleaning Authority! A leader in the growing $46 billion cleaning service industry, The Cleaning Authority provides the tools and support you need to achieve your personal and professional goals. Our business model is time-tested and specifically designed to help you maximize your profit potential. The Cleaning Authority offers franchise owners a unique opportunity: We do the marketing for you: At The Cleaning Authority, 86% of customers are generated at the national level. This means you can focus on the operations of your business. Enjoy recurring revenue from a repeat customer base: You don’t start from zero every month on a quest for new customers. Customers, on average, have their homes cleaned every two weeks. Build toward absentee ownership: With a focus on hiring and training, offices build strong management infrastructure that can grow to manage day-to-day office operations, giving our franchisees more time to do the things they love. Great Lifestyle: No weekends + no late nights
Low Capital Commitment: Low investment cost + limited working capital + no/limited capex Our residential cleaning franchise opportunity is not like any other available in the market. Our key differentiators from other maid service franchise opportunities are: • Trend-right environmentally friendly positioning • Turnkey customer acquisition strategy • Detailed, proven cleaning operating procedures • Web-based total management operating system • National call center to handle estimate calls and scheduling as well as existing customer inquiries • Standard operating procedures that target owners/operators Unwavering Support Many people believe they need to have a deep understanding of the home cleaning industry to be successful with our franchise opportunity. In reality, all that is required is ambition and the willingness to utilize our tools and resources to your benefit. Training and support are offered to every one of our franchise owners, and we are always with you every step of the way. Join us in six simple steps! Contact us to learn more.
THE CLEANING AUTHORITY 7230 Lee Deforest Dr. Suite 200 Columbia, MD 21230
(410) 910-9341 jason@franchisesp.com www.franchise.thecleaningauthority.com
JUL-AUG 2019 | FRANCHISE CONNECT 47
COMPANY PROFILE
3rd Degree Training / Actual Nutrition Amazing dual brand Fitness and Nutrition Franchise opportunity!
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rd Degree Training / Actual Nutrition Canada’s exciting dual brand fitness and nutrition franchise is heading south to the wonderful USA! We are looking for passionate, dynamic franchise partners to join us as we continue our growth in this fantastic and growing industry! With industry low startup costs, healthy margins, high number of revenue streams, and tremendous franchise support, 3rd Degree Training / Actual Nutrition packs a serious punch in the fitness and nutrition industry! As a franchise partner with 3rd Degree Training, you'll see that we have laid the groundwork to a successful business model that provides anyone and everyone the opportunity to live their healthiest life. We believe in providing each franchise partner with the tools and one-on-one support they need to be successful. 3rd Degree Training is making the journey across North America. There has never been a better time to get into the health and wellness industry. Franchising opportunities allow you to be in business for yourself but never by yourself. Let’s start a conversation today! 3rd Degree Training may be one of the fastest ways to go from zero to fit. We offer just about everything in terms of exercise, nutrition, and lifestyle change. Our fitness camps focus, on total body conditioning and not just specific body sections. A trainer leads a group of clients through an hour of functional strength training and cardio. The secret lies in the circuit-style workout that toggles
between cardio and muscle building. This shuffling of routines prevents boredom and exercise ruts. For people willing to put in the work, fitness camps enable exercisers to see results quickly and stay motivated! Our fitness camps have some special features. We are cardio driven but include functional exercises using only body weight, Encouragement comes not just from the instructors but also from other participants, who will cheer on fellow campers! This fosters a camaraderie and support that isn't found in regular fitness classes. This camaraderie strengthens with time, establishing accountability, which is essential for sticking with a program. At Actual Nutrition, we take a holistic approach to nutrition. We educate and support our clients on how to use real food to sustain a healthy lifestyle. We help our clients set health goals and create a nutrition plan that helps them achieve those goals. We also provide one-on-one support every step of the way. We also offer services such as lunch and learns, corporate wellness programs, and more!
3RD DEGREE TRAINING / ACTUAL NUTRITION 16C Myrtle St., Stratford Prince Edward Island Canada
48 FRANCHISE CONNECT | JUL-AUG 2019
(902) 370-7575 franchise@3rddegreetraining.com www.3rddegreetraining.com
COMPANY PROFILE
Bio-One A franchise system that helps people in their greatest time of need
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rime scene cleaning is an industry where you know you are making a positive difference in peoples lives. You are being contacted to remedy a crisis in the greatest time of need. It's as close to being a hero on a day-to-day basis as you can get. To learn about the industry in greater detail, and Bio-One's role, please contact us. The year 2019 kicked off with Bio-One being included in the best and most comprehensive franchise ranking - Entrepreneur magazine's Franchise 500. Bio-One was once again ranked higher than the prior year, up 40 spots to be exact, to #304. This is one of the largest jumps in the franchising world and the largest jump in Bio-One Inc.'s history.
BIO-ONE INC. 5231 South Quebec Street Greenwood Village, CO 80111
((240) 446-6413 Jason Blough, Franchise Consultant www.biooneinc.com
JUL-AUG 2019 | FRANCHISE CONNECT 49
BY THE NUMBERS
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THE US FRANCHISE INDUSTRY TURNS OVER
TUTORING IN THE US IS A
BILLION DOLLAR INDUSTRY
$800
BILLION
SOURCE: IBISWORLD
ANNUALLY
35 MILLION+ U.S. HOUSEHOLDS HAVE CHILDREN UNDER 18
24 MILLION+ HAVE KIDS UNDER 13
CHILD EDUCATION REVENUE IS EXPECTED TO REACH $2.1 BILLION BY 2019 MORE THAN 600,000 SMALL BUSINESSES IN THE UNITED STATES ARE FRANCHISES SOURCE: SBA
SOURCE: U.S. CENSUS BUREAU
THE "HARRY POTTER" FRANCHISE AS A WHOLE IS ESTIMATED TO BE VALUED AT ROUGHLY $25 BILLION
NUMBER OF PEOPLE EMPLOYED BY FRANCHISE ESTABLISHMENTS IN THE U.S.
8.17 MILLION SOURCE: SBA
30
MILLION US RESIDENTS WITHOUT A HIGH SCHOOL DIPLOMA
50 FRANCHISE CONNECT | JUL-AUG 2019
20
PERCENT OF THE ADULT POPULATION HAS ONLY BASIC LITERACY SKILLS
73
PERCENT OF ADULTS IDENTIFY THEMSELVES AS LIFE-LONG LEARNERS
© FRANCHISE CONNECT MAGAZINE
SOURCE: WAYNE DUGGAN , BENZINGA
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.
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