FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary ’ FranchiseDictionary s FEBRUARY 2019
FRANCHISEDICTIONARYMAGAZINE.COM
PASSIVE OWNERSHIP! The winning formula behind Sharkey’s Cuts for Kids
$5.95
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
Kid 42 Why active entertainment is the next big thing
THE ABC’S OF FRANCHISING
The pros and cons of emerging brands
THE ABC’S OF FRANCHISING
FRANCHISES
Where business meets fun
40
Creating experiences with Sharkey’s Cuts for Kids
44
This brand is all about out-of-the-box thinking
Interested in owning a franchise?
The world’s largest franchise consulting and expansion organization
www.franserve.com 800-206-5454
Let our team of
Superhero Consultants
help you find your perfect franchise Our services are 100% free to you. Similar to recruiters, our fees are paid by the organization.
C A PI TA L I Z E O N A B O O M I N G N E E D
SENIOR CARE, ONLY BETTER With nearly 75 million individuals aged 51-69 in the U.S., the need for elder care has significantly grown over the years, making it a $400 billion industry and counting! This means that the market for senior care businesses will continue expanding. While there are countless franchise options to choose from, Senior Helpers owners are uniquely positioned to capitalize on a booming need while delivering a meaningful and necessary service to elderly individuals and their families. Leading In-Home Care Franchise Opportunity • Average Annual Gross Revenues *$1,075,795 • Low initial investment range • Positioned for growth with territories open across the US
• Strong income potential • Extremely experienced corporate support staff and state of the art training for staff and caregivers
Harness the growing need for quality in-home care by becoming a Senior Helpers franchise owner today. Ready to learn more?
Seniorhelpersfranchise.com | 877.406.8749
*Discounted franchise opportunities for military and first responders
*See Item 19 of our April 9, 2018 FDD for further details (*2017 gross revenue for franchised businesses that have been operating 60 months or more. As of December 31, 2017 there were 207 franchised businesses that had been operating 60 months or more. Of these 207 franchised business, 76 (37%) of them had greater than average annual gross revenues of $1,075,795. The gross revenue figure does not include any deduction of costs or expenses incurred by the franchised businesses.) Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much. This information is not intended as an offer to sell a franchise. It is for informational purposes only. Currently, SH Franchising, LLC is not registered in Rhode Island. We cannot offer a franchise in Rhode Island until we have complied with applicable pre-sale registration and disclosure requirements. SH Franchising, LLC is the franchisor and is currently headquartered at 901 Dulaney Valley Road, Suite 700, Towson, MD 21204. Residents of NY: This advertisement is not an offering. An offering can only be made by a prospectus filed first the with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
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Minnesota State Registration Number: F-7348.
con·tents
kən�tents/ noun
1. Your February lineup of stories and features 2. An amazing resource for franchisees
28
34
DEPARTMENTS 10 Letter from the Publisher 12 Letter from the Editor 15 Buzzword What’s trending now.
23
Update
26
Franchisee of the Month
Franchising’s latest headlines. Getting the best of both worlds.
28
Legalese
30
Entrepreneur
52 54 58
Special considerations for educational franchisees. Losing weight and gaining a new business.
Interview
Geoff Batchelder on emerging brands.
Spotlight
Trending businesses you want to know about.
Last Word
A franchise brand that earns top marks in the tutoring business.
February 2019 5
con·tents 46 42
40 FEATURES 34 Making the Grade
With an educational franchise, you can make a difference.
36 Child’s Play
Fun for kids, profitable for you, children franchises are booming.
38 Kids’ Franchises
We take a behind-the-scenes look at five innovative brands.
48 With Age Comes Wisdom
Why 50-somethings are at the perfect age for business ownership.
50 The Art of Matchmaking
Not all matches are about couples in love.
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FranchiseDictionaryMagazine.com
CHANGE YOUR FUTURE... AND THEIRS Through Challenge Island Franchise Ownership
The World’s Highest-Ranked STEM/STEAM Franchise for 2019 by Entrepreneur Magazine
NEARLY 100 FRANCHISES
Across the United States and internationally
HOME-BASED / MOBILE BUSINESS With large, protected territories
LOW START UP COSTS
Scalable model and multiple profit centers
FUN, FULFILLING CAREER
Allows you to make a difference and an income
STANDARD-ALIGNED CURRICULUM
Created by an award-winning educator and author
FRANCHISING@CHALLENGE-ISLAND.COM
985.209.8430
WWW.CHALLENGE-ISLAND.COM
February 2019 Publisher/CEO Alesia Visconti avisconti@franchisedictionarymagazine.com VP of Franchise Expansion Joan Winchester joan@franchisedictionarymagazine.com Direct: 610-724-7084
Editor-in-Chief Jill Abrahamsen editor@franchisedictionarymagazine.com 888-315-9549, Ext 505 Senior Editors Mary Lynn Mitcham Strom, Mary Vinnedge
Senior Executive Coordinator Michele Goitiandia michele@franchisedictionarymagazine.com
Associate Editor Maria Tattoli Web Designer Audra DeFalco
February Contributors Jonathan Barber, Geoff Batchelder, Diana Capirano, Nancy Friedman, Michelle Hummel, Jessica Melendez, Jerry Rieder
on the cover
FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary s’ FEBRUARY 2019
FRANCHISEDICTIONARYMAGAZINE.COM
PASSIVE OWNERSHIP! The winning formula behind Sharkey’s Cuts for Kids
$5.95
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
Kid 42 Why active entertainment is the next big thing
8
SHARKEY'S CUTS FOR KIDS With a passive ownership model, and an innovative concept, Sharkey's Cuts for Kids offers a solid investment in a high-growth area. The creative salon caters to kids ages 0-14, offering a fun experience in addition to a great haircut. See the full story on page 40.
THE ABC’S OF FRANCHISING
The pros and cons of emerging brands
THE ABC’S OF FRANCHISING
FRANCHISES
Where business meets fun
40
Creating experiences with Sharkey’s Cuts for Kids
44
This brand is all about out-of-the-box thinking
CONTACT US Franchise Dictionary Magazine, 345 Route 17 South, Upper Saddle River, NJ 07458 888-315-9549 • info@franchisedictionarymagazine.com
franchisedictionarymagazine.com Entire contents copyright ©2018
FranchiseDictionaryMagazine.com
www.ReviewMyFDD.com Providing you
PEACE OF MIND when buying into a franchise!
February 2019 9
October 2019 50 Remarkable Female Franchisors
let·ter
1. A welcome note from our publisher 2. Alesia Visconti on children's service franchising
WOW
2019
WOMEN OF W OND ER FranchiseDictionary THE ABC’S OF FRANCHISING
The WOW 50 meet all or most of the following criteria. These women:
• Empower other
women to succeed
• Help others with their business
• Fill a niche in the market that benefits families and other women
• Disrupt a business category
• Inspire others to make change
Whatever their story, these fearless women all had the courage to take a risk. They inspire us, motivate us, and awe us. Do you know a WOW franchisor? Or are you one yourself? We’d love to hear from you. Please fill out the nomination form here.
FranchiseDictionary THE ABC’S OF FRANCHISING
Franchising is booming, and there’s no better place to see that than in brands catering to children’s services and products. Who doesn’t want their kid to be happy, healthy, and do well in life? I bet no hands go up. Whether it be brands in childcare, grooming, academics and tutoring, swimming, sports, martial arts, dance, music, arcades, trampoline parks, or the integrated learning model of S.T.E.A.M. (Science, Technology, Engineering, Arts, and Mathematics), there’s no doubt about it: Helping kids can be both financially lucrative and emotionally rewarding. With as many variations of brands as there are children, the franchise industry offers lots of options. If you find yourself needing some help, reach out to the contributing franchise consultants to find your perfect franchise! Franchise consultants often attend events to stay abreast of changing trends, new brands, and data impacting the franchise industry.
Franchise consultant Brian LeCour catches up with FDM's Publisher/CEO Alesia Visconti at the The Franchise Expo South.
Yours in FRAN-ship!
Alesia Visconti Publisher/CEO avisconti@franchisedictionarymagazine.com
LOW COST ROBUST CURRICULUM FOCUSED ON FUN! UNPARALLELED CORPORATE SUPPORT COLLABORATIVE CULTURE
HOME BASED OVER 60 CLASSES & 40+ BIRTHDAY THEMES ONGOING CONSULTING, ADVICE AND GUIDANCE LEADER IN STEM/STEAM EDUCATION
CLASSES | CAMPS | BIRTHDAY PARTIES | SCOUTING EVENTS | AND MORE
ANCHISE OPPORTUNITIES AVAILABLE WWW.SNAPOLOGY.COM/FRANCHISING
• Large, protected territories • Fast startup, low overhead • Flexible, home-based business
Franchise Opportunities Available
We inspect and respect your home TheInspectionBoys.com
800-819-4409 800-819-4403
A FRANCHISE YOU CAN TRUST February 2019 11
#FranServe2019
ELEVATE YOUR BUSINESS!
let·ter
\�le-tər \ noun
1. A welcome note from our editor 2. Entrepreneurial inspiration I live vicariously through the entrepreneurs I interview for this magazine. By nature, I am not a risk-taker, so I am in awe of what they do. Turning a passion into a successful business—and then going a step further into franchising—well, that’s downright inspiring.
FranServe 2019 Convention & Expo July 7-10 Denver, CO
I say this after every issue, but I truly was moved by the stories behind the brands we feature in February, most notably the story of Susan Caldwell, founder of Flour Power for Kids. Her entrepreneurial journey started when she bottomed out. She was more than 100 pounds overweight and unhappy. When Caldwell decided to turn her life around, she started a business that has improved the eating habits of thousands of children. See the full story on page 30. Sharon Estroff is as passionate as they come. Her innovative Challenge Island brand offers a fun, low-cost opportunity that excites kids about learning. Find out more about it on page 44. I also love the story behind Sharkey’s Cuts for Kids, which is featured on our cover. Sharkey’s is the brainchild of a dynamic couple on a mission to make haircuts more fun. Read more on page 40. I hope these stories give you a feel for the people behind the brands we explore and inspire you to start your journey into business ownership. All the best,
Interested in exhibiting? Please contact Joan Winchester at joan@franserve.com 610.724.7084
Jill Abrahamsen Editor-in-Chief editor@franchisedictionarymagazine.com
Join us in creating a world of healthy fun! www.funtopiaworld.com/franchise
January 2019 13
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buzz·word
\ 'bəz-'wərd \ noun
1. A compilation of franchising trends 2. What franchise experts are talking about
From Teacher to CEO An entrepreneurial journey from the classroom to the boardroom Heath Falzarano never imagined he’d be a CEO back when he was employed as a teacher and coach. But Falzarano knew he wanted to try something different and earn more than his teaching salary. Intrigued by a lead-generation company’s ad that advertised unlimited earning potential, he started down a path into the business world. “As a teacher, the unlimited earning part sounded really, really good to me,” Falzarano jokes. The lead-generation company exposed him to many investment opportunities, and Falzarano considered several. When he first came across Naturals2Go vending, he dismissed it as an option. “I didn’t know much about the business and wasn’t really interested.” But the more he heard, the more he liked. Naturals2Go offers investors variable start-up costs and flexible schedules. “What excited me was that there was no franchise fee, but there still was a ton of support, and I loved that the business provides healthy snacks to kids,” Falzarano says. “I was really impressed with the management team. They seemed to be vetting me more than I was vetting them. To me, that spoke volumes. I was sold.” So in 2016, Falzarano and a partner invested in 20 machines, a decision that ultimately
Fazarano and his family enjoy the healthy options Naturals2Go offers.
thrilled him. Falzarano’s passion for the brand was obvious to everyone, and upper management took note of his enthusiasm. The rest, as they say, is history. In 2018, Falzarano was asked to run the company. “Being in the trenches as an owner/ operator puts me in a great position to build the brand and give our investors the support they need. The culture at Naturals2Go is all about helping our investors. From location services to training, we are there for them.” Learn more at www.naturals2go.com. —Jill Abrahamsen
February 2019 15
buzz•word Tradeshow Happenings Our Franchise Dictionary Magazine team had fun at the Franchise Expo South in January. We enjoyed talking with attendees and checking out great brands. For more information, visit www.franchiseexpossouth.com.
1 1
2
1. Colleen Pyle, CEO and founder of Just Let Me Do it Commercial Services, visits our booth and poses with our January cover, which featured her brand.
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2. Our magazine was a hit at Franchise Expo South. FDM’s VP of Franchise Expansion, Joan Winchester, and Publisher/CEO Alesia Visconti had a great time meeting attendees and educating them about franchise ownership. 3. At the IFA VetFran panel “Veterans in Franchising: Unique Opportunities and Resources,” panelists discuss why military veterans excel in franchise ownership. At the podium is IFA’s Radim Dragomaca; seated is FDM’s Alesia Visconti.
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Show Time
4
UPCOMING SHOWS Visiting trade shows is a great way for investors to meet franchisors face-to-face. Below are five to put on your calendar.
5
The Franchise Show www.USFranchiseShows.com February 16-17, 2019 Meadowlands Stop by our Exposition Center booth, Secaucus, New Jersey #119
4. Believe it or not, our beautiful backdrop fits in a tiny bag. FDM’s Joan Winchester packed the big banner in her carry-on when flying to the show and quickly set it up in the booth. Learn more about EZ Backdrops™ at www.ezbackdrops.com.
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5
5. Attendees rock our branding colors in the booth, where our team inducted them into the “FDM Tribe.”
IFA2019 International Franchise Association's Annual Convention www.franchise.org/convention February 24-27, 2019 The International Franchise Association’s Annual Convention is franchising's biggest event for business development and personal growth. Mandalay Bay Las Vegas, NV The Franchise Show www.USFranchiseShows.com March 2-3, 2019 Del Mar Fairgrounds San Diego, CA The Franchise Show www.USFranchiseShows.com March 16-17, 2019 Orange County Convention Center Orlando, FL The Franchise Show www.USFranchiseShows.com March 30-31, 2019 Ohio Expo Center Columbus, OH
February 2019 17
buzz•word
Write landing pages that convert leads. Here’s how. Use personas. Getting into the mindset of the type of person you want to target prior to writing will improve the overall quality of the landing page. Make your value statements clear. Don’t make visitors guess what kind of value your email newsletter, product, or service can provide. Instead, write copy that explains exactly what potential customers are going to get out of doing business with you. Do A/B conversion optimization testing. Test multiple landing pages and track analytics to determine which one converts the most leads. This will take the guesswork out of your marketing. Install Google Analytics. Be sure to install Google Analytics on your entire website so you can best understand your visitors’ intentions. Michelle Hummel is CEO of Web Strategy Plus. Contact her at michelle@webstrategyplus.com, visit www.WebStrategyPlus.com. 18
Courtesy Calls Proper phone manners will serve your kids (and maybe your business) well Kids use cellphones constantly, texting, shooting and sharing images, surfing the internet, emailing, and even occasionally talking. Yet many lack decent telephone etiquette. What happened to the toddler who said “please,” “thank you,” and “you’re welcome?” If you’re like most parents, you gradually stopped teaching those terms of courtesy, and the magic words —so crucial in telephone talk— vanished by age 16. That lack of conversational courtesy could damage your business if your teen mishandles customer calls during a summer or after-school job. But even if your kids never work with you, one day they will get jobs, and poor phone habits could hold them back in their careers. To boost your kids toward success, here’s a to-do list for helping them field calls with finesse: Proper procedures start at the top. In business, the boss leads by example. With phone
•
manners, children follow their parents’ lead. So show them behavior that is the pinnacle of politeness. Use a play phone before giving access to your cellphone. Test their etiquette by role-playing with a close friend or relative, not a customer. Use positive reinforcement when they handle the call right: “Good for you. That was perfect, Alex.” Fake praise isn’t healthy, so after a subpar performance, say, “That was close, Blake, but I bet you can do a little better.” Remember to praise in public and criticize in private. Once your kids have mastered their manners, telephone courtesy will be a workplace asset, whether they’re assisting your customers or someone else’s. Nancy Friedman is a popular speaker and author of nine books on customer service and sales. Contact her at 314-291-1012 or nancy@telephonedoctor.com
• • •
America’s first and most trusted drywall repair franchise company February 2019 FRANCHISE OPPORTUNITIES AVAILABLE
19
buzz•word
Information Central The IFA helps potential franchisees as well as seasoned pros in the industry
The International Franchise Association (IFA) serves as an information clearinghouse for all things franchise. Whether franchisor or franchisee, consultant or attorney, or other franchise specialist, the IFA can offer vital statistics, advice from every type of expert, the names of excellent suppliers— anything and everything. People already in the industry trust the association as their go-to resource. But another crucial aspect of the IFA mission is to educate wannabe franchisees about the industry. Is franchising even right for you? The nonprofit organization’s website, www.franchise.org, can assist your decision-making with a 10-question quiz. When you’re evaluating franchises, what do you look for? The IFA suggests topics that should be explored in-depth, including: 1) what to ask the franchisor and yourself, as the potential franchisee, and 2) precisely how much support you will receive from the franchisor.
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In addition, the IFA helps potential franchisees learn their legal rights regarding liability issues, trademarks, product sourcing, and more. If you decide franchising is for you, the IFA can point you toward franchises that are an ideal fit for your experience, educational background, financial status, and goals. The association further narrows the field based on which ones are especially generous toward veterans, franchises with a buy-in of less than $50,000, and international opportunities. How about those all-important franchise disclosure documents, or FDDs? The IFA has tutorials to clarify the terminology and expectations. And once you’re ready to buy a franchise, if you need start-up money, the association can recommend various options. Folks entering the exciting, rewarding world of franchising will find that the IFA is a new BFF. For more information, visit www.franchise.org.
A franchise opportunity with a built-in customer base > > > > > > >
Low start-up costs 20 years proven success Established clients Impressive sales growth High client demand Excellent support Business-to-business
“WE STRIVE AND THRIVE TO MAKE IT HAPPEN”
www.justletmedoit.com • 704-960-4554
We bring major brands directly to our franchisees
Grow Your Brand! You want to grow your brand. We can help! Franchise Dictionary Magazine is emailed monthly to more than 250,000 readers nationwide. Our subscription list is growing every day. Contact joan@franchisedictionarymagazine.com and find out what we can do for you!
FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FO FranchiseDictionary Fr anO chDiseDictionary ry na io ct Di Franchise FranchiseDictionary SEPTEMBER 2018
FRAN CHISI NG THE ABC’S OF DECEMBER 2018
FRANCHISEDICTI
ONARYMAGAZINE
FRANCHISEDICTI
$5.95
FRAN CHISI NG THE ABC’S OF
.COM
ONARYMAGAZINE
.COM
THE ABC’S OF FRAN CHISI NG
THE WAFFLE EXPERIENCE:
Hommati Changing the way real estate ts doNG agenCHISI FRAN OF THE ABC’S business
a new take on an old favorite
THE ABC’S OF FRAN CHISI NG
THE ABC’S OF FRAN CHISI NG
FRAN CHISI NG THE ABC’S OF
FRANCHISING NOW THE ABC’S
Get in line for fresh and healthy mea ls
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FRAN CHISI NG THE ABC’S OF
Game Changers ea Brands that mak
difference
Legal Hassles for Restaurant FranTHE ABC’S OF FRAN chisees CHISI NG
…and how to solve
them
Pork belly provided
by Jones Dairy
Farm
FranchiseDictionary FranchiseDictionary FranchiseDictionary 5 anchiseDictionary Fr FranchiseDictionary APRIL 2018
FRANCHISEDICTI
ONARYMAGAZINE
.COM
CLASS ACTS
Educational Franchises are Making the Grad e From Corporat e America to Franchising: Things You Need to Know
The Winning Formula Behind Snapology®
THE ABC’S OF FRAN CHISI NG
THE ABC’S OF FRAN CHISI NG
THE ABC’S OF FRAN CHISI NG
THE ABC’S OF FRAN CHISI NG
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49 This franchise is turning service heads with a unique
36
It doesn’t have to taste bad to be good for you.
He left Corporate America and never looked back.
Meet the dream team behind The Waffle Experien ce.
A college-planning franchise takes off
$5.95
THE ABC’S OF FRAN CHISI NG
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18
46
42
Cresanti IFA President Robert s on game changer
OF FRAN CHISI NG
$5.95
How to shop for an educational franchis e
Using franchising for the greater good
for The sky’s the limit Hommati’s Jerry Clum
FranchiseDictionary THE ABC’S OF FRANCHISING
FranchiseDictionaryMagazine.com
up·date
\�əp- dāt\ noun �
1. The latest headlines in the franchise industry 2. Quick news bites to inspire you
The Last Straw
»
BEN & JERRY’S WILL ELIMINATE SINGLE-USE PLASTICS IN ALL ITS SHOPS Early this year, Ben & Jerry’s will stop using plastic straws and spoons at its shops worldwide. Instead, the company will supply paper straws (only when requested) and wooden spoons. Plastics, which take centuries to decay, have intoxicated wildlife and fish, entered the food chain, and threaten human health. Jenna Evans, global sustainability manager for Ben & Jerry’s, leads the transition. She says company shops currently hand out 2.5 million plastic straws a year and 30 million plastic spoons. If the spoons used by Ben & Jerry’s just in the U.S. were placed end to end, they’d stretch from Burlington, Vermont, to Jacksonville, Florida. “We, and the rest of the world, need to get out of single-use plastic,” Evans says. The company will address plastic cups and lids by the end of 2020.
February 2019 23
up•date FOOD FOR THOUGHT
Athletic Support Chipotle Mexican Grill has launched a mission to improve food quality. Its Chipotle Aluminaries Project will mentor eight start-up companies in the areas of alternative farming and growing systems, farming and agriculture technology, food waste and recovery, and plant and alternative products. Through this project, part of Chipotle’s larger effort to invest in the future of food and upgrade the industry, the eight growth-stage venture companies will receive the resources to make a positive impact while scaling up. Chipotle CEO Brian Niccol says “the selected companies represent the best and brightest of what’s next in the food industry. We can’t wait to help them reach their full potential with the Chipotle Aluminaries Project.” The selected ventures will participate in a five day, in-person boot camp in Newport Beach, California, with direct coaching to build their plan for scale.
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RACHEL’S KITCHEN PITCHES IN TO HELP UNLV STUDENT ATHLETE Rachel’s Kitchen recently announced a partnership with the Loyalty Circle of the University of Nevada, Las Vegas and professional golfer Ryan Moore, a UNLV alumni, to support a student athlete. Together, the three will provide tuition for a student athlete on one of the university’s 17 NCAA Division l teams. “We are excited to support one of UNLV’s highachieving student athletes and look forward to creating a lasting partnership with the Loyalty Circle,” says Kent Asaki, chief development officer of Rachel’s Kitchen. “This is an extension of our Friends of Rachel’s program and a continuation of our mission to make Las Vegas a better place, one neighborhood, one person at a time.” Moore says that by covering tuition, the student athlete “can go onto greater
things, whether it’s in their sport or in their career or in their life.” Friends of Rachel’s, which is Rachel’s Kitchen’s main platform for giving back, assists many nonprofits and charities. In doing so, the restaurant raises funds as well as awareness in areas ranging from education and animal causes to health advocacy and childcare services. Says Debbie Roxarzade, Rachel’s Kitchen founder and CEO, “I always knew giving back would be a part of our company’s DNA, and I’m so proud of the work we have done.”
Looking for your next career adventure? FRANSERVE: WHERE DREAMS COME TRUE
Being a FranServe consultant is like being a superhero
Find your dream career by helping others achieve their dreams of business ownership through franchising The world’s largest franchise consulting and expansion organization
www.franserve.com February 2019 800-206-5454
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fran·chi·see \ fran-chī-zē, -chə-\noun
1. An outstanding franchise owner 2. Getting the best of both worlds
TIM DIPADOVA
The Inspection Boys North East, OH
S
by Jill Abrahamsen
upport was the missing ingredient in Tim DiPadova’s private home-inspection business. “Going it alone was difficult. I was spreading myself too thin, wearing too many hats,” says DiPadova, owner of the Inspection Boys in Northeast Ohio. So the idea of converting the business to a franchise made a lot of sense. In searching for the right franchise system, DiPadova did his due diligence. “I looked at several home inspection brands—five others to be exact—but The Inspection Boys stood out,” he says. A newer home-inspection franchise system, the New York-based brand is gaining traction for its high level of service and innovative marketing strategies. DiPadova was impressed from the very first
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call. “I loved the energy and enthusiasm I got from the management team. I didn’t see that passion in the more established brands. They were very transparent and honest,” he says. Direct access to the leadership of a franchise system is one of the many perks you get with a newer brand, and that appealed to DiPadova. “I immediately hit it off with CEO Matthew Rivera and President Rob Aglialoro. They have a great vision and really know the business. They are both down-to-earth guys with a true passion for the franchise,” DiPadova says. Another benefit that comes with newer franchise brands is large territories, and that was a major selling point for DiPadova. “I am really pleased with my location and have
“Going it alone was difficult.
I was spreading myself too thin.”
an opportunity to keep expanding in the Ohio market without worrying about competition,” he says. DiPadova enjoys working with his customers and helping them make informed decisions about home ownership. Now that the business has been converted to a franchise, he has more time to focus on the work instead of trying to do everything himself. “The franchise provides the latest in marketing search engine optimization (SEO). It’s nice not having to figure all that stuff out,” he says. Besides marketing, the ongoing training and team approach at The Inspection Boys makes it easier for DiPadova to run the business. “It’s so nice to be able to make a phone call and get advice from the other franchisees or the management team. Being part of a network like this has been a game-changer for me,” he says. “The team has given me strategies on marketing the business at a local level, which has been great. They know what works.” Thrilled with his decision, DiPadova looks forward to growing his business. “Moving to franchising has really been a win-win for me.” Learn more at www.inspectionboys.com.
Tim DiPadova (opposite and left) converted his private inspection business to The Inspection Boys franchise. He chose the brand for its outstanding marketing systems and large territories. DiPadova hit it off with the management team right away. Here, he poses with them, (from left to right), Vice President, Brigette Malik, CEO, Matt Rivera, Digital Marketing Specialist, William Dittmer, and President, Robert Aglialoro.
February 2019 27
le·gal·ese /lēgə’lēz/noun
1. The formal and technical language of legal documents that is often hard to understand. 2. Straight talk from Jonathan Barber
E
Special Considerations for Educational Franchisees
ducational franchises are hot right now. Day-care centers, sports leagues, music, art, and tech concepts are taking over. You can walk through a strip mall in any suburban area and count the children-focused franchises. And there’s something else you’ll notice—they’re packed! Our firm has worked with many franchisees who bought into educational franchises, and I recently franchised a long-standing children’s art studio. But if you are looking into an educational or child-focused franchise, then there’s a few unique points to keep in mind. STATE DAYCARE LAWS I had never known about state day-care laws until I was drafting a franchise disclosure document for a new educational concept. In every state, there are laws that regulate daycares. Each of these laws defines “daycare” differently, too. Some states base the definition of daycare on the number of hours a child is present at the business. For instance, if a child spends at least three hours at the business, then that business is considered a daycare. Initially, this doesn’t sound too important, but the ramifications of being classified as a daycare are huge. In every
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state, daycares are subject to heavy regulation. Typically, the Department of Social Services (“DSS”) or the Department of Human Services (“DHS”) regulate daycares. Immediately upon being classified as a 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 be subject to heavy fines and, potentially, closure. SAFETY Safety is an obvious concern any time children are involved. You will use common sense to figure out if a particular franchise model is safe for children. However, there are some additional concerns you should keep in mind. For instance, is this business a drop-off model where children are dropped off for a class or session and then picked up by their parents or guardians afterward? Are the parents or guardians present while the children are there? You will want to make sure the franchise has solid systems and procedures for ensuring the children are safely dropped off and picked up. For example, if a mother brings her child to a class, you will want
“The ramifications of being
classified as a daycare are huge.”
to know who, if not the mother, is authorized to take that child home. If the family is going through a domestic issue and an unauthorized person like an estranged parent picks up the child, you could face serious liability for letting the child go with someone unauthorized.
the franchisor about which other children-focused franchises might compliment your own. In the adult-space, it makes sense to drop a juice bar next to a fitness franchise. Children’s concepts will have their own synergies, but you have to take the time to find them.
COMPETITION On a less scary note, consider the competition in the educational and children-focused franchise space. Are you going to drop a children’s art studio right between a children’s dance studio and a children’s swimming franchise? Essentially, your competition encompasses all extracurricular activities, not just art. Talk with
Jonathan Barber exclusively practices franchise law as a partner at Barber Power Law Group, in Charlotte, North Carolina. He has assisted hundreds of clients world-wide with their FDDs and franchise purchases. Barber also represents emerging and established franchisors. Contact Barber at 980-202-5679 or JBarber@barberpowerlaw.com.
February 2019 29
en·tre·pre·neur änn-trə-p(r)ə-'nər\noun
1. One who manages and assumes the risks of a business 2. Losing weight and gaining a new business
T
by Jill Abrahamsen
he cover of a magazine at the supermarket checkout
prompted Susan Caldwell to turn her life around, and in doing so, she began an entrepreneurial journey. More than 100 pounds overweight and unhappy, Caldwell saw People magazine’s weight-loss cover and became inspired to take control of her life. Through exercise and diet, she lost the weight and gained a new lease on life. In the process, she laid the groundwork for her franchise, Flour Power Kids Cooking Studios. “I wanted to prevent kids from going through what I did,” she says. Caldwell never intended to create a franchise business. Initially, she was approached by a local gym to work with children and help them make smart food choices. “Seeing my transformation inspired others,” she says. Her influence on kids became so popular with parents that she decided to teach cooking classes out of her home. An immediate success, her classes were booked solid in no time. But, as demand grew, running the business out of her home wasn’t sustainable. Taking a leap of faith, Caldwell opened her first studio in 2009. “I had no idea what I was doing,” she laughs. With few resources, Caldwell had to wear many hats to launch the business. “I did what it took, from washing dishes to marketing and everything in between,” she laughs. As the company grew, she added more locations and staff. She began franchising in 2015 in 30
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order to scale the business. With locations throughout North Carolina, Michigan and Colorado, Flour Power has added camps, adult cooking lessons, and free classes to children with special needs in addition to the healthy kids’ classes. In the works is an add-on mobile unit and a cooking show. Caldwell is super passionate about her brand and wants to partner with investors who share her love for children and for healthy eating. Big into support, Caldwell makes sure franchisees get ongoing training, which includes weekly webinars. “Years ago, I would have never imagined I could do all this. It truly is a dream come true,” she says. Learn more at www.flourpowerstudios.com.
“I wanted to prevent kids
from going through what I did.�
Flour Power Kids Cooking Studios gets children excited about healthy eating.
February 2019 31
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Making the
Grade
Investing in an educational franchise is a great way to be in business for yourself—and make a difference.
by Jerry Rieder
Certified Franchise Consultant
I
nterested in playing a role in the shaping of young lives? Starting a children’s education franchise can give you that opportunity. A children’s education franchise requires a commitment to helping young kids learn and develop as they grow. Aside from investing in a franchise, you’re also investing in kids’ lives. From teaching kids the fundamentals of reading, writing, and math to helping them learn about computers and technology to providing a place for children to exercise and play sports, a children’s franchise in education offers many possibilities. The children’s education franchise sector has annual revenues totaling more than $30 billion and includes approximately
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45,000 companies. Since the industry covers so many subjects, it’s fragmented with the 50 largest companies representing approximately 30 percent of the total revenue of the industry. The potential for growth in this business segment is significant. If you are considering starting a children’s education franchise, it’s important to note that some states may require franchise owners to have specific certifications or licenses to operate one. Look into governmental regulations that could affect your business before investing in any franchise opportunity. Looking for a place to start? The following are high-demand categories within the children’s education franchise sector and good business models within each area.
Preschool/Childcare
Finding high-quality childcare is one of the most important—and stressful tasks for parents. With the rise of two-income families, these services are in-demand and show no signs of slowing. There are offerings that provide much more than just care—they enrich and teach children and offer enrichment activities to keep children engaged. There are traditional centers like the Lightbridge Academy which prides itself on customer service. There are non-traditional educational franchises like Montessori Kids Universe which offers an authentic Montessori curriculum combined with the schedule, flexible enrollment options, and the rolling admissions of a child-care center.
»
Tutoring
In-home tutoring services offer franchisees low start-up costs and overhead. With brands like Tutor Doctor, you can run the business out of your home without a dedicated location (and related overhead cost) in order to get started. Many brands offer tutoring programs for children from kindergarten to college level, adult education, and senior citizens curricula, incorporating an understanding of all learning types. Tutoring at home often offers many advantages over traditional learning centers, as tutors are working one-on-one with their students, it is also a convenient service for busy parents.
Enrichment/STEAM Education
Today, enrichment options are much broader and address younger children with educational programs that focus on science, technology, engineering, math (STEM), and sometimes the arts (STEAM). These programs aim to teach, but they also help children embrace education early on and think of learning as fun. Brands like Stemtree franchise offer self-paced and customized programs. Stemtree does not provide a traditional classroom education program. Instead, it provides one-on-one instruction and activities for each child.
Jerry Rieder, CFC, has been a franchise consultant since 2012. He became part of the FranServe Training and Development Team in 2013 and has helped a large number of consultants become successful. His compassion and desire to see others achieve drives him to share his techniques and best practices with new and experienced consultants alike. He serves as a trainer, a mentor, and also as a facilitator for FranServe’s Power Teams. His prior 25+ years of management experience with Fortune 500 Companies provides the foundation for aiding others to achieve their goals. Contact Jerry at jerry@franserve.com
February 2019 35
CHILD'S Play Fun for kids, profitable for you, children franchises are booming. by Alesia Visconti, Certified Franchise Consultant
T
here is no question we all want the
best for our children: We want them to be happy, healthy, have fun, and learn. We want bright, blissful futures for them. Luckily, there’s an assortment of franchise brands designed to ensure that all our children's needs—and more—are taken care of.
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“Parents are more willing
to sacrifice discretionary spending in many other ways so they can contribute to their kids’ development.” Nearly two-thirds of mothers with young children work outside the home, so needs for extended care begin from the start. Postpartum and newborn care is exploding, after-school enrichment programs thrive, and with society’s ever-changing demands dual-income families are becoming the norm. Businesses that cater to these families will be in ever-increasing demand. The desire of parents to have more physically active children—versus playtime consisting of sitting and playing electronic games all day long—is enabling fun and creative brands to flourish. Focused on areas such as sports, music, swimming, dance, cooking, adventure parks and the like, a plethora of sub-categories in the arena of “children’s products” help develop the minds and bodies of our future generations—all while easing the stress of parents’ work schedules. Co-mingling the two areas of learning and fun is a trend toward “art play/education,” serving to develop the cognitive skills of children through STEAM (Science, Technology, Engineering, Arts and Mathematics). For business-minded investors looking at category options, brands focused on children
offer many attractive pluses. Parents are more willing to sacrifice discretionary spending in many other ways so they can contribute to their kids’ development and advancement. Parents want well-balanced, socially engaged children. And for many working parents, childcare is a necessity in order for the household to function. All of this leads to strong numbers for children’s franchise brands. With low-cost options, many home-based and/or mobile, the absence of a physical location results in no build-out costs, extremely low overhead, and the ability to open the business and ramp up more quickly. Important for many franchise owners, it also gives them the work balance they seek, with hours of operation in harmony with their own lives. While it is easy to see how brands that focus on children’s needs can thrive in nearly all economies, it usually isn’t solely the financial benefits that motivate owners. When you ask the owners what drew them to the industry, often they state having the opportunity to make a positive impact on the lives on children in their community as a strong factor. Truly rewarding on every level!
Alesia Visconti, CFC, and her expert team of franchise consultants are passionate about helping others achieve their dreams of business ownership through franchising. Visconti has 20-plus years helping others find career bliss. She is the CEO of FranServe Inc, the world’s largest franchise consulting & expansion organization. Her motto in life is “work hard, play hard, help others, repeat.” Alesia is a self-proclaimed nerd and loves all things “superhero.” For more information visit www.franserve.com. Reach Visconti at avisconti@franserve.com
February 2019 37
s d i K
’
FRANCHISES
WHERE BUSINESS MEETS FUN
I
by Jill Abrahamsen
f you love children and are looking for an opportunity in a high-growth industry, then a children's franchise may be for you. There are options for every lifestyle and for every budget, from massive play gyms and child care centers to tutoring services that can be run out of your home. Some brands run better with passive ownership while others need hands-on owner-operators to be lucrative. Whatever the size or the model, they all have one thing in common: They are fun to own. On the following pages, we take a behind-the-scenes look at very different and creative concepts in this sector. Starting on page 40, for example, we feature Sharkey’s Cuts for Kids. This creative salon caters to children ages 0-14 and offers a fun experience along with a great haircut. Funtopia, featured on page 42, is a place where children forget their devices and have fun being active. Challenge Island, a wildly creative concept, is a low-cost opportunity that teaches kids critical thinking and teamwork. Read more on page 44. If you're up for laughs and giggles and a great business opportunity, read on. You might just find your perfect fit.
' s Kid FRANCHISES
Scott Sharkey
SHARKEY’S CUTS FOR KIDS PASSIVE OWNERSHIP IS WHAT SHARKEY'S CUTS FOR KIDS IS ALL ABOUT. Entrepreneur magazine recognized Sharkey’s as a top 100 brand under $150K for 2018. Sharkey’s proven business model works best when the owner is hands-off in the daily operations of the business. “We seek franchise partners who want to keep their day jobs. Franchisees can run their businesses from home, the kitchen table, or a remote location. We offer a recession-proof investment… not a job,” says Scott Sharkey, founder and CEO. Sharkey, and his wife Linda, created Sharkey’s Cuts for Kids to offer a different kind of hair-cut experience for children ages 0 to 14. They saw an opportunity to take the drudgery out of kids’ haircuts and turn it into a fun and lucrative business. The first location opened in Greenwich, Connecticut, in 2002, and has grown steadily. “We do not sell a haircut, we sell an experience,” says Sharkey. From toddlers to tweens, Sharkey’s Cuts for Kids has something for everyone. “We don’t just cater to the youngest of children or one gender. We have positioned ourselves in the market as the only true kids’ salon franchise for ages 0-14! With our unique design and technology, we are able to keep the kids coming to Sharkey’s for an additional 8 years over other kids’ salons. This allows Sharkey’s to have the highest and longest retention rate in our industry,” says Sharkey. While they are getting haircuts, younger kids are thrilled to sit in novelty chairs and watch shows and older kids get the latest in technology and have a blast playing their favorite Xbox game. Multiple revenue streams come from a variety of services, including birthday parties and propri40
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Novelty chairs and colorful decor lure kids in at Sharkey's Cuts for Kids. The innovative franchise offers multiple revenue streams and a recession-proof, passive business model.
etary product lines. A membership program guarantees repeat business. With the recent acquisition of The Hair Genies Lice Treatment Institute, Sharkey’s will be adding a Lice Treatment Clinic franchise to its portfolio. Sharkey is excited for the growth of the business, which doubled in 2018. “Our franchise offers people the opportunity to invest in a brand that has longevity, is fun to run, is recession proof, and has very little competition. Kids always need haircuts and you cannot get that on Amazon,” Sharkey says. For more information, visit SharkeysFranchisingCompany.com or take a virtual tour at SharkeysVirtualTour.com
February 2019 41
' s Kid FRANCHISES
Yassen Nikolov
FUNTOPIA
GETTING KIDS OFF SCREENS AND MOVING AROUND IS A CHALLENGE FOR all parents. With this in mind, Funtopia offers a creative solution that not only gets kids off devices, but gets them excited about adapting healthy lifestyles. As the name suggests, this active entertainment park is all about fun and activity. Funtopia takes rock wall climbing to the next level. Visitors experience imaginative scenarios like riding dinosaurs, jumping off skyscrapers, or climbing beanstalks. “They get to use their muscles and their imaginations,” says Yassen Nikolov, general manager of Funtopia. Rope courses, zip lines, ninja courses, artificial caving, and many more active entertainment adventures add to the mix. “Instead of focusing on one activity, we have several mini-concepts, which keeps it interesting. It’s all about active entertainment,” he says. Funtopia’s dedication to promote healthy living goes way beyond activities. At the snack bar you won’t find junk food. “We only offer healthy options like baked chicken, fruit smoothies, and juices made without sugar,” says Nikolov. Parties and memberships create multiple revenue streams. With its original site in Bulgaria, Funtopia franchises are spreading around the globe, including locations in Australia, Israel, and Pakistan. Since 2016, franchise opportunities have been offered in the U.S. and Canada. Although different ownership structures are available, Nikolov wants to partner with a certain type of investor. “We’d like to see some passion for the business. It has to be the right fit,” he says. “Most importantly, we want franchisees who follow the system and like our culture.” For more information, visit www.funtopiaworld.com 42
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February 2019 43
' s Kid FRANCHISES
Sharon Estroff
CHALLENGE ISLAND
CHALLENGE ISLAND® WAS BORN FROM OUT-OF-THE-BOX THINKING and innovation, and the franchise teaches those same traits. Originally launched as an afterschool program, Challenge Island has a curriculum designed to excite kids about learning. CEO and founder Sharon Estroff, a former teacher, developed the concept as a way to engage students. Inspired by her favorite reality TV show, Estroff had an epiphany back in 2002. She wondered, “What if I turn the classroom into an island, divide students into tribes and create challenges that promote higher-level thinking?” She tested her concept as an after-school enrichment program, and it was an immediate hit. Today Challenge Island is a rapidly growing franchise operation that attracts various kinds of investors, including teachers. Estroff personally creates and constantly adds to the curriculum, which incorporates science, technology, engineering, art, and math (STEAM). While having fun, kids develop important life skills such as collaboration, compromise, resilience, and critical thinking. The hundreds of themed lessons, “Fantastic Fiction,” “The Cat in the Hat Challenge,” and “Mythology Challenge,” for example, target specific age groups. Estroff is passionate about her business and looks to partner with investors who love children and want to make a difference. “At Challenge Island, we consider the needs of both the child of today and the adult of the future,” she says. “For today’s kids, we offer whimsical, engaging journeys into new worlds of adventure and imagination; a welcome reprieve from the increasingly digitalized 44
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At Challenge Island’s “STEAM Girls and Dolls Camp” (below and bottom), girls design spas for their dolls.
and high-pressure childhood experience. For tomorrow’s adults, we offer the foundation for building the skills required to thrive in a competitive, 21st-century global society.” Her unique concept has won accolades for several reasons. It’s wildly popular with children, and it allows franchisees to be creative and mold young lives in positive ways. Challenge Island’s many revenue streams include camps, enrichment classes, birthday parties, scouting events, and senior programs. The franchise also offers something that’s missing from other brands: the ability to customize and be creative. Challenge Island provides a flexible, mobile, and home-based model with low overhead and high margins. “We give tremendous support to our franchise partners and think of them as family,” Estroff says. For more information, visit www.challenge-island.com
February 2019 45
' s Kid FRANCHISES
Laura Coe
SNAPOLOGY
IT'S REALLY OK TO HAVE FUN WHILE YOU'RE LEARNING. IN FACT, MANY experts agree that children are meant to learn through play. That’s where Snapology comes in. An interactive educational program, Snapology engages children with hands-on, playful activities that teach STEAM (science, technology, engineering, art, and mathematics). As a mother and businesswoman, founder Laura Coe saw a need for an enrichment program that was fun. “Kids are under so much pressure these days. It’s a competitive world, but childhood and learning shouldn't be stressful,” Coe Says. Partnering with her sister, Lisa, they started the first Snapology in 2010. Focusing on the whole child, the program puts an importance on teamwork and collaboration. “We have brilliant kids coming out of college these days that have poor social skills. We want to change that.” This low-cost, home-based business teaches robotics and STEAM principles through classes, camps, and parties. After six months, franchisees can add a brick-and-mortar Discovery Center. “We have more than 60 different program topics and themes, and we’re always updating our curriculum,” Coe says. In the works is a 40-foot charter bus that will be offered as an add-on to the business. “This will create opportunities to work with day-care centers and preschools that might not have the space to accommodate outside programs. The buses even come equipped with pop-out tents and tables for outdoor activities. This will work well for birthday parties, too. Parents can keep the mess outside,” Coe says. As a former franchisee herself, Coe knows the importance of support and training and has put a lot into perfecting the franchise systems. “We make it easy for our partners to run and market the business. If they have a problem, we find a solution,” Coe says. For more information, visit www.snapology.com. 46
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Sandy MacIver
KIDS FIRST SWIM SCHOOLS THE EARLIER THAT CHILDREN BEGIN SWIMMING, THE FASTER THEY learn and the less likely they are to become afraid of the water. With that in mind, Kids First Swim Schools starts lessons for children as young as 3 months old. Kids First founder Gary Roth, who designed the program in 2001, believes that every child should know how to swim. With a trademarked curriculum, he took a methodical approach to lessons, having children master the basics before moving to the next level. “The program not only teaches children lifesaving skills, but the proper mechanics of swimming,” says Sandy MacIver, director of franchise development. “Unlike recreational pools, our training pools are designed specifically to teach children how to swim. As a franchise company we offer our franchisees more than 18 years of intellectual capital. We offer a big, upfront savings to investors because Kids First Construction Company oversees the retail space construction, as well as the build out of the pools,” she says. As they say, location is everything. With that in mind, the swim schools are built in children-centric retail centers giving the schools a tremendous amount of marketing exposure. With a structured teaching environment, parents can enjoy watching their children through one-way class, and the 90-degree pool temperatures allows students to stay focused on their lessons without the distractions of being too cold. The company is intentionally growing at a moderate pace to ensure franchisee satisfaction. “We want to make sure our franchise partners are successful. We help them find the perfect location,” with sites averaging 6,500 to 9,000 square feet, McIver says. “We guide them every step of the way.” For more information, visit www.kidsfirstfranchisecompany.com
February 2019 47
With Age Comes Wisdom Why 50-somethings are at the perfect age for business ownership.
F
by Diana Capirano Certified Franchise Consultant
ranchising is great for people of all ages, but men and women at mid-life are prime candidates for these opportunities. The 50-something life experience brings great value to business and the entire franchise system. If you’re not yet 50, keep reading—one day you will be and it comes sooner than you think. One of the coolest things about franchising is that there is no age discrimination, but 50-somethings are prime candidates because often the kids are out of the house and they can focus on their own wants and goals. Even retirees are getting in on the action as business models are conducive to semi-absenteeism
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“One of the coolest things about franchising is that there is no age discrimination.” and allow a very flexible lifestyle balance. AARP and social security are just added bonuses. As a franchise consultant, I help clients realize that along with business acumen, life experiences—personal and professional—are of huge value to franchisors. Stored applied knowledge, emotional intelligence, and transferrable skills from other careers can make a big difference in owning a business. At age 50, you have better clarity as to what is missing in your life. Maturation somehow brings us to, “there must be more to my life than this.” The mindset shifts from what can we do for our employer to what value owning a business brings to us. We desire a higher form of our mid-life selves. Statistically, the highest rate of entrepreneurship in the U.S. has been among 55 to 64-year old’s, and people older than 55 are twice as likely to launch successful new companies than those in the 20-to-34 age group. So it’s a misconception to think that only young people are risktakers and wildly innovative. Next time you think you’re past your prime, get inspired by Ray Croc (McDonald’s), Charles Flint (IBM), Bill Porter (E*Trade), and Bernie Marcus (Home Depot). Didn’t anyone tell you that 50 is the new 30?
WHY 50-PLUS WORKS Although franchise models can be plug and play, the 50-plus age group has more to offer than you might think. Here are a few great perks that come with life experience. Broad and deep life experience: Having had a wide range of experiences in the past, will help you handle new situations and relate to a broad group of people now. Diversified knowledge and skills: People over 50 often have understanding in sales, operations, finance, training, and mentoring others. This builds confidence and flexibility. Networks: The ability to leverage established professional networks can accelerate growth and provide recruitment opportunities. Past failures: Likelihood of previous failures provides learning opportunities. It tends to make us less risk adverse and more motivated to succeed. Accessibility: Now even retirement plans can be used to fund the business.
Diana Capirano, CFC, has an expansive career which includes corporate and franchise sales and development, marketing and operations, merger and acquisitions, structuring and negotiations as well as business ownership. As a highly-respected consultant and mentor, Diana espouses a profound commitment to help prospective business owners and investors understand and navigate the process of deciding on a franchise business. Contact Diana at 941-999-0095 or email diana@focusfranchise.com
February 2019 49
THE ART OF
Matchmaking S
by Jessica Melendez Certified Franchise Consultant
ure, this time of year Cupid may point his arrows, but not all perfect matches are about couples in love. The franchise industry has its own set of Cupids, otherwise known as franchise consultants, and they, too, are skilled in the art of matchmaking. How can you tell if you’re working with a quality
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franchise consultant? Just like a good life partner, you want a good listener, someone who puts your needs first, and knows what’s important to you. Here are a few signs that your consultant is a good one.
consultant wants to discover what the client wants to obtain financially. A six-figure income? A cash business? Scalability? The consultant also needs to understand what a client can financially qualify for and how comfortable he is with risk. A decent franchise consulShe gauges your seriousness. Are you tant wouldn’t want a client to fall in love with all-in or just exploring? You want a profession- a concept that’s not in his budget. al who is savvy enough to detect—and help She has connections. A quality franchise you decide—if franchise ownership is for you. consultant will represent several franchise brands and—once armed with information She asks questions and listens to about her client—can start matchmaking. The answers. Once a franchise consultant has consultant will present options for the client been enlisted to find the right match for a to review, so he can decide who he would like client, she should be focused on what her to get to know further. A consultant should client is really looking to do. A good consultant will get to know her client on three levels: never be afraid to throw in a wild card to expand a client’s options. First, the personal level. What are the client’s personal objectives? More time with family? She leads the client through the Less travel? Work from home? It’s important process. Once a connection is made, the clifor the consultant to pay close attention here, ent has to decide if the match is right for him. because a client could be revealing his true How does he do it? Research. A quality conmotivation for business ownership. sultant will encourage the client to research Next, the consultant should inquire about the brand and to get to the know the potential professional goals. What is the client trying to franchisor before signing on the dotted line. achieve in his next business? Maybe he’s tired A consultant will also suggest that the client of answering to others and wants to be his own speaks to other owners to validate the brand boss. Maybe he wants to build something to and get a first-person account of what the leave to his kids. Maybe he wants to diversify his portfolio. Professional ambitions are telling client should expect as a franchisee. And just like with Cupid, if the courtship goes well, then of what a client wants now and in the future. a union is made. The third level is financial. A thorough A trainer and mentor for FranServe, Inc., the world's largest franchise consulting firm, and the CEO of WestStar Franchise Group, Jessica Melendez coaches and educates prospective franchise owners and helps them find businesses that align with their personal and professional ambitions. As a franchisor and president of Dryer Vent Squad, Melendez has first-hand experience in all aspects of franchising, which makes her an excellent resource for prospective franchisees. Contact Melendez at 915-202-8272 or Jessica@weststarfranchisegroup.com
February 2019 51
in·ter·view
\�in-tər- vyü \ � noun
1. A Q&A session with an industry expert 2. Geoff Batchelder on emerging brands
Geoff Batchelder has been a franchise
QA
consultant and franchise development expert for the last 10 years. He helps launch successful businesses and builds strong franchise systems. Before that, he spent 25 years focusing on business development in the high-tech industry. Contact him at 877-222-3722 or email geoff@compassfranchisegroup.com.
What are the pros to an emerging brand? An emerging brand can be an exciting and lucrative option for true entrepreneurs who want to get in early and be a part of the exciting, and sometimes frustrating, early-growth periods. No doubt early-stage franchisees will have more influence over the direction of the franchise and likely, a tight relationship with the franchisor. They usually have more freedom within the franchise system versus the rigidity that typically develops with a mature franchise system. Typically, up-front costs will be less in an early-stage franchise. As the franchise system matures, franchise fees and royalties increase due to increased purchases, like inventory and equipment. For an investor who is willing to take on potential extra risk, getting into an emerging brand can have real financial upside. Another benefit is you get the best locations and territories. This is especially important in a service-based franchise that sells territories. It’s not uncommon for prime metro areas to get sold in that first year of franchise operations, and once they’re sold, they’re gone.
QA
What are the cons? The biggest issue to keep in mind is the increased risk that comes with a system that hasn’t been given the test of time and multiple owners in multiple markets. I’m a big fan of emerging brands, but there are things to look out for if you’re considering one. First, make sure that the market is a big one and has room for growth. Understand what makes this emerging brand different from its competitors. Does the franchisor have the financial resources to grow the brand? Is there franchising experience on the team? Make sure your personality and vision fit with the franchisor since you’ll be working very closely together.
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QA
Is it harder to get funding for an emerging brand? No, but you have to know where to go—and it’s not your local bank. As long as the brand has taken the time to register with the Small Business Administration (SBA), it shouldn’t be a major issue. We’ve had no issues getting financing for franchisees for The Flying Locksmiths and WaveMAX Laundry, two popular emerging brands. Of course, if you are going to fund with a ROBS program, then the emerging brand status doesn’t matter at all. However, you will need franchise candidates that have the appropriate amount of liquidity, net worth, and a good credit score.
QA
What are red flags to look for? When evaluating an emerging brand, the franchisee should look for the same things business owners looking to franchise their businesses should consider. Does the franchisor talk about getting rich by franchising or mention looking for that private equity buyout? You want a franchisor that loves his business and wants to build a franchise empire, someone who is willing to invest the time and effort it takes to get there. Is this business the ‘latest, greatest’ thing? You’re looking for a business sector that is mature rather than a new widget. Is there a lack of franchising experience on the team? It’s critical to have franchise experience on the development team.
QA
What are signs an emerging brand will be a winner? Consider a few key points: First, what does the competitive landscape look like? You are looking for a fragmented sector without a professional, systematic approach to customer acquisition, service, and support. Next, has the business proven it knows the business? Has it had financial success and developed competitive differentiators? I want to see at least three years of impressive financial results in an emerging brand. Is the franchisor committed to franchisee success? I can’t tell you how many examples I have seen where someone franchises a successful business, but then forgets that the original business is no longer the focus. Now franchisees must be the top priority. Is the emerging concept adequately capitalized to keep the business growing during those early years when franchise revenues aren’t going to be very strong? Have there been other successful franchise systems in this sector? If not, there may be a reason why it won’t do well as a franchise. The last one is more art than science—the “it” factor. It’s hard to quantify, but when it’s there you’ve got a chance to develop that next big thing in the franchise world.
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spot·light
\�spät-�līt \ noun
1. Trending franchise businesses you want to know about 2. A great place to show off your franchise
Dryer Vent Squad® The Patch Boys®
The Patch Boys® takes care of damaged drywall caused by clumsy accidents or water damage. These jobs are usually too small for contractors, and most homeowners don’t have the time or skill to take care of drywall repairs themselves. When you join The Patch Boys® family, you become a part of an entrepreneurial community that works together to advance the brand. For more information, call 844-99-PATCH, or visit www.thepatchboys.com.
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WE GET THE LINT OUT
Dryer Vent Squad® provides a valuable, inexpensive service to homeowners that saves time, money—and could potentially save homes and lives. Since approximately 80 percent of all U.S. households have a clothes dryer, there is a huge base of potential customers. Dryer vents need to be cleaned and maintained on a regular basis. Dryer Vent Squad® takes away the worry and lets families reclaim time and money. For more information, visit www.dryerventsquad.com.
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The Inspection Boys® If you’re looking for a lowcost, high-reward business, check out The Inspection Boys. Offering a service that’s in demand, but in a newer franchise system, franchisees reap the benefits of huge territories with a tried-and-true business concept. The company prides itself in its cutting-edge marketing, using the latest in search engine optimization and social media to promote the brand at a corporate level. This homebased business offers low overhead, big margins and quick ROI. Learn more at inspectionboys.com or call 800-819-4403.
FranServe
Naturals2Go A flexible schedule and high-growth potential are just some of the perks Naturals2Go owners enjoy. Offering healthier choices than you’d expect to find in ordinary vending machines, Naturals2Go machines are welcome additions at schools and other high-traffic areas where people want quick, healthy snacks. Investors enjoy unlimited support and variable start-up costs. For more information, visit www.naturals2go.com or call 208 699 9169.
The world’s largest franchise consulting and expansion organization, FranServe Inc. helps people seeking lifestyle balance and financial security to find their perfect fit. That might mean working with a FranServe Certified Franchise Consultant, a free service, to identify and explore ownership of a particular brand. (Consultants are paid by the brands they represent.) Others may find the perfect fit by becoming a FranServe Certified Franchise Consultant and securing their dream career by helping others become franchise owners. With the franchise industry growing exponentially due to dramatic changes in corporate America, franchise ownership or franchise consulting offers a wonderful future. Learn more at www.FranServe.com.
Just Let Me Do It! Commerical Services® If starting a business with an existing customer base sounds good to you, consider Just Let Me Do It! Commercial Services. With corporate contracts in place, franchisees have jobs waiting for them on day one of opening for business. A handyman service for businesses, franchisees enjoy a turnkey model with low start up costs and high margins. The 20-year-old company has a proven business model and is now offering franchise opportunities. For more information, call 704-960-4554 or visit www.justletmedoit.com.
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spot·light Funtopia
Challenge Island Challenge Island® is a unique and rapidly growing educational franchise. Incorporating STEAM education (science, technology, engineering, art, and math), the program takes children on imaginative journeys to an array of thematic islands. Each island is made up of numerous “destinations,” where children work in collaborative tribes on action-packed challenges. With low start-up costs and multiple revenue streams, including enrichment programs, camps, and parties, Challenge Island® is worth a look. For more information, visit www.challenge-island.com.
®
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Senior Helpers Dedicated to promoting healthy lifestyles in children, Funtopia combines sports with fun in an innovative way. A oneof-a-kind adventure park, visitors experience rock wall climbing like never before with imaginative scenarios, like riding dinosaurs, jumping off skyscrapers, and climbing beanstalks. Rope courses, zip lines, ninja courses, artificial caving, and many more active entertainment adventures add to the mix. Parents will be thrilled with Funtopia's snack bar options, which includes smoothies and baked chicken. Franchisees get unlimited support in an industry that has huge growth potential. For more information, visit funtopiaworld.com.
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The need for eldercare has grown significantly over the years, making it a $400 billion industry. This means that the market for senior care businesses will continue to expand. Senior Helpers® owners are uniquely positioned to capitalize on a booming need, while delivering a meaningful and necessary service to elderly individuals and their families. With a low investment, experienced corporate support staff, and state-of-the-art training for staff and caregivers, franchisees can grow the business at their own pace. Discounts are available to military and first responders. For more information, visit Seniorhelpersfranchise.com or call 877.406.8749.
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February 2019 57
last word
\ last \ \ wərd \ noun
1. Advice from a successful brand 2. How Huntington Learning Center sustained lasting success
Head of the Class How to Earn Top Marks in the Tutoring Business 1. Have a vision. Founder Eileen Huntington, while working as a teacher, saw students struggle with basic writing, reading, and math skills. She wanted to make a difference—and has. Franchise owners enjoy that same emotional reward. 2. Tap an excellent track record: The company started strong and has stayed strong. Established in 1977, Huntington Learning Center grew steadily. By 1985, it had established 18 locations in the New York metropolitan area. Today it has more than 300 locations nationwide. 3. Enjoy repeat business: Huntington tutors students from kindergarten through high school. During those years, they’re likely to need help with different subjects and various standardized tests. 4. Be confident of success: Huntington students increase one or more grade levels in reading and math, respectively, after three months. 5. Defy economic downturns: The New York Times labeled tutoring “immune to recession” because parents always make spending on kids’ education a top priority. During its 42-year history, Huntington has weathered multiple recessions. For more information, visit www.huntingtonhelps.com. 58
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Water is for Swimming not for basements
The Water Damage Restoration
NO GOOD-BYE, ‘TIL IT’S DRY www.thedryboys.com • 844-99-DRYBOYS
