JANUARY 2018
$5.95
FRANCHISEDICTIONARYMAGAZINE.COM
The Hottest HOME-BASED Franchises
GYMGUYZ® Josh York shares his winning formula
We talk to leaders from today’s most innovative brands
PROS AND CONS
of working from home
5
lessons from FIVE GUYS®
12
An outstanding franchisee team tackles fire safety
34
Home-based businesses with high returns
42
How to evaluate a franchise investment
2
FranchiseDictionaryMagazine.com
January 2018 3
con·tents
kən�tents/ noun
1. All the stories and features contained in this January issue 2. An amazing resource for franchisees
BOB & CATHY BELLIS Dryer Vent Wizard Central New Jersey
12 DEPARTMENTS
7 Letter from the editor 8 Update 12 Franchisees of the Month
A warm welcome to our very first issue.
Actor Jon Hamm stars in H&R Block’s® new campaign plus the latest news.
Franchisees Bob and Cathy Bellis are not only managing a successful home business, but they’re also educating their community about fire safety.
38 Interview 46 Spotlight 48 Last Word
Advice from Christopher Conner, founder of Franchise Marketing Systems.
A showcase of trending franchise businesses.
Five lessons from “five guys.”
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18
18
32
48 46
FEATURES
15 Home-Based Franchises Mean Big Business
Home-based companies have the same stature as businesses in office locations, and the volume of people choosing to launch them is growing.
18 Cover Story: Hottest Home-Based Franchises 26 Confessions of a Home-Based Business Owner 28 Is a Home-Based Business for You? 32 No Place Like Home 42 How to Evaluate a Franchise Investment Industry leaders reveal why home-based franchising is taking off.
Your clients don’t need to know everything that goes on in your home office.
How to balance business and family when working from home.
We look at the most lucrative home-based businesses.
What to look for when considering a franchise purchase.
January 2018 5
on the cover JANUARY 2018
$5.95
FRANCHISEDICTIONARYMAGAZINE.COM
The Hottest HOME-BASED Franchises
GYMGUYZ® Josh York shares his winning formula
We talk to leaders from today’s most innovative brands
PROS AND CONS
of working from home lessons from 5 FIVE GUYS
®
12
34
An outstanding franchisee team tackles fire safety
42
Home-based businesses with high returns
How to evaluate a franchise investment
We explore some of the hottest and most innovative home-based franchises available today and get helpful advice and tips from industry leaders.
FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary THE ABC’S OF FRANCHISING
President: Joseph D. Katz
THE ABC’S OF FRANCHISING info@franchisedictionarymagazine.com
Editor-in-Chief: Jill Abrahamsen
editor@franchisedictionarymagazine.com THE ABC’S OF FRANCHISING
Senior Editor: Mary Lynn Mitcham Strom THE ABC’S OF FRANCHISING Contributors: Sean Ajani, Christopher Conner, THE ABC’S OF FRANCHISING Brian Lincer, Lisa Welko Sales: (888) 315-9549, ext. 503
sales@franchisedictionarymagazine.com
Graphics: graphics@franchisedictionarymagazine.com
Contact us: 197 State Route 18, New Brunswick, NJ 08816 info@franchisedictionarymagazine.com
franchisedictionarymagazine.com Entire contents copyright ©2018
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let·ter
\�le-tər \ noun
1. A welcome note from our editor 2. A brief overview of what’s in this issue
Greetings and welcome to our first issue of Franchise Dictionary magazine, a new online monthly resource designed for people who are dreaming of franchise ownership. Are you a prospective franchise owner? Here, you will find everything you need to know about launching—and sustaining—a franchise business. We aim to cut through the confusion and give you clear, sensible, and reliable information from writers and experts you can trust. Our pages are entertaining and informative, but above all, provide useful information to help you navigate the path to a successful business. In this issue, we take a close look at the world of home-based franchising. “Hottest Home-Based Franchises,” (page 18) showcases innovative brands, such as GYMGUYZ®, a mobile, on-demand personal-training service and The Patch Boys®, a home-based franchise specializing in drywall repair. Of course, a lot goes on behind the scenes and that’s where our feature stories come in: Lisa Welko’s “No Place Like Home” (page 32) explores the pros and cons of running a business out of your home and highlights franchise industries that you can manage from your kitchen table. In “How to Evaluate a Franchise Investment” (page 42), expert Christopher Conner reveals how to make a smart franchise purchase. On page 12, meet our “Franchisees of the Month:” New Jersey Dryer Vent Wizard® owners Bob and Cathy Bellis are not only running a successful family business, but also educating communities about fire safety. We hope you enjoy this first issue of Franchise Dictionary magazine, and we appreciate your support. If there are topics you’d like to see on our pages, please drop us a line. Until then, we wish you a happy and healthy new year and much success in 2018—with your franchise and your life.
Jill Abrahamsen Editor-in-Chief editor@franchisedictionarymagazine.com
January 2018 7
up·date
\�əp- dāt\ noun �
1. The latest news in the franchise industry 2. Quick news bites to inspire you
Hamming it Up
» 8
JON HAMM STARS IN H&R BLOCK’S® NEW CAMPAIGN H&R Block® will kick off the 2018 tax season with a new campaign. The campaign’s main concept is winning at tax time by finding all the credits and deductions taxpayers are entitled to for the best outcome. Featuring actor Jon Hamm as H&R Block’s® spokesperson, eight new broadcast spots were created that center on Hamm in a variety of behind-the-scenes scenarios on a film set. “Last year’s ‘Get Your Taxes Won’ campaign was overwhelmingly a fan favorite and one of our most successful national marketing and advertising campaigns,” says Kathy Collins, H&R Block’s® chief marketing and strategy officer. “When we saw the early positive engagement and strong response from consumers, we made the decision right away to co-create with Jon again and he was all in.”
FranchiseDictionaryMagazine.com
In brief HIGH-ENERGY EXPANSION
They Grow So Fast KIDDIE ACADEMY® CELEBRATES THE OPENING OF ITS 200th LOCATION Kiddie Academy,® a nationally recognized provider of educational child care, announced the opening of its 200th location—in Vancouver, Washington. Founded in 1981 with a single location in Baltimore County, Maryland, the familyowned business launched 36 new locations in 2017. To celebrate the 200th opening, students from
every Kiddie Academy® across the country are participating in a month-long celebration of events, sharing gifts, activities, and even a photo contest. Michael J. Miller, executive chairman of Kiddie Academy,® says the company expects to open an additional 40 locations by the end of 2018 across the U.S., and in three new states.
Sweet Recognition EDIBLE ARRANGEMENTS® CEO NAMED TO THE IFA HALL OF FAME Tariq Farid, who created and grew a single Edible Arrangements® store into the world’s largest franchisor of shops offering creatively designed fresh cut fruit arrangements and all-natural, fresh fruit snacks and treats, will be named to the IFA Hall of Fame, the Association’s highest honor. Farid will be inducted into the Hall of Fame on Sunday, February 11, 2018 during the IFA Annual Convention in Phoenix.
Crunch Fitness,® the gym known for the phrase “No Judgments” has a new 24,000-square-foot location planned for Seminole, Florida. This is the 10th Crunch® location for veteran ownership team Vince Julien, Geoff Dyer, Tony Scrimale, Jeff Dotson, and Kevin La Ferriere. These five owners have more than 120 combined years of management experience in the fitness industry.
A GOOD CHOICE Choice Hotels International® announced that it has reached a definitive agreement to acquire the brand and franchise business of WoodSpring Suites [SM] from WoodSpring Hotels Holdings LLC, a portfolio company of Lindsay Goldberg, for approximately $231 million, subject to customary adjustments. The acquisition will add nearly 240 extended-stay hotels in 35 states to the Choice Hotels® portfolio.
January 2018 9
up·date
Not so Taxing
In brief
A NEW START
Good news. There’s a cure for holiday overindulgence. The folks at néktər® JUICE BAR, are offering to reset, reboot, and reenergize after the holidays with two new fresh and delicious, immunity- and metabolism-boosting menu offerings: Grapefruit Reboot Juice and Skinny Skoop. They are available through February 4, 2018 at participating restaurants.
ALL EYES ON EXPANDING My Eyelab,® one of the fastest growing retail optical centers in the nation, announced that it is growing its franchise expansion initiative, setting California as a priority market. Immediate single- and multi-unit territories are available as the brand seeks qualified and enthusiastic investors to join this untapped market.
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LIBERTY TAX® OPENS 2018 TAX SEASON WITH LARGE TAX REFUND ADVANCE Liberty Tax® will open the 2018 tax season with a large tax-refund advance at participating locations. Liberty Tax® is working with Republic Bank & Trust Company, member FDIC, to offer the Easy Advance loan of up to $3,250. There are no fees or interest associated with the loan, which is secured by the tax refund. Liberty Tax® realizes that the tax refund is the biggest single income event in many households and that refund delays mandated by the federal government can have a negative impact on families. The Easy Advance will give eligible taxpayers quick access to much-needed funds.
Southern Hospitality BAR LOUIE® EXPANDS TO SOUTH TEXAS Bar Louie®, the bar and eatery featuring handcrafted cocktails and made-fromscratch food, is pleased to announce plans to expand into South Texas with its newest franchise partners, Perspective Hospitality Management Services LLC. Each Bar Louie® location will have its own set of diverse characteristics and pro-
vide a unique atmosphere to its guests,” says Jill Szymanski, Director of Franchise and Real Estate for Bar Louie®. “We can’t wait to see what new experiences potential Bar Louie® franchisees will bring to their communities.” With more than 130 locations across 27 states, the expansion will create more than 250 new jobs.
Do you know an outstanding franchisee who does great things on and off the field? Nominate him or her to be our next
FranchiseDictionary FranchiseDictionary FranchiseDictionary THE ABC’S OF FRANCHISING
CONTACT US AT
editor@franchisedictionarymagazine.com to find out more. THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
fran·chi·see \ fran-chī-zē, -chə-\noun
1. An outstanding franchise owner 2. A franchisee who does great things on and off the field BOB & CATHY BELLIS Dryer Vent Wizard Central New Jersey
A
By Jill Abrahamsen
s the saying goes, “when one door closes, another opens.” That’s how Bob Bellis felt about an unfortunate string of bad luck. After losing his corporate job in 2013, Bellis spent six months looking for another one before he was finally employed again. “It was a really scary time,” says Bellis, “and to make things worse, my wife, Cathy, lost her job that same year right before Christmas.” Bellis knew he had to find a “Plan B.” That’s when he began to consider home-based franchising. He did a lot of research and eventually hired a franchise consultant to help him and his wife make the right choice for their family. Bellis had an idealistic wish list: 1. To have a family business that could grow. 2. To own a business his wife and children could manage. 3. To make a profit. 4. To do something that would make a difference in other people’s lives. “We wanted to do something valuable for the community that would also allow us to do well for ourselves,” says Bellis.
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“We wanted to do something
for the community that would also allow us to do well for ourselves.”
His consultant told him about Dryer Vent Wizard®, a dryer vent cleaning franchise that could be managed from home. After looking into it, he realized he could make money and potentially save lives. “Many homeowners don’t realize that dryer vents must be cleaned or the built-up lint could cause fires. People could lose their homes or even their lives.” After the Bellises launched the business in 2014, Cathy took the helm, managing the dayto-day. Passionate about fire safety, she wanted to get the word out. Early on, she made a list of all the firehouses in the area, prepared educational materials, and hit the pavement handing out flyers and talking to the community about safety and prevention.
The community appreciated her efforts, and the outreach certainly didn’t hurt business. Within three months of owning the business, the Bellises started to enjoy a positive cash flow. Now they are in a stride: Many tedious duties are automated or outsourced. Cathy oversees the day-to-day, but she also finds time to babysit her grandchild. Bob focuses on growing the business and still has a corporate job. Their son Ryan, 27, helps out at night, and they have two fulltime technicians. The only drawback? “I can’t fit my car in the garage anymore because of all the equipment,” says Bellis. But that is nothing compared to the positives. In fact, Bellis only seems to have one regret: “Not doing this 20 years sooner.”
January 2018 13
&
Home-Based Franchises Mean
BIG BUSINESS
THE HOME-BASED BUSINESS MARKET HAS EVOLVED SIGNIFICANTLY over the past decade. What was once considered a second-tier version of employment now has professional appeal. Today, home-based companies have the same stature as businesses in office or retail locations, and the volume of people choosing to launch them is growing.
By The Franchise Dictionary Magazine Staff
January 2018 15
“The mass exodus of employment created a push for entrepreneurship” According to IncFile.com, there are more than 38-million home-based businesses in the U.S., and an increasing number of them are home-based franchises. These franchises combine the value of a franchise system along with the convenience of a home-based business. These days, there are a variety of industries to choose from. Handyman services, painting, financial services, accounting, and sales are just a few of the franchise industries that you can manage out of your living room. Brands such as JaniKing®, which now boasts 12,282 locations worldwide, and CertaPro Painters®, with 385 locations in the U.S., are largely home-based. A key driver for the expansion is the low upfront investment. Traditional franchise models, such as restaurants or retail models, typically require significant capital just to get the doors open, way before the franchisee sees a single dollar in revenue. Many times, traditional franchises could require investments of $200,000 or more and limit the pool of potential buyers due to capital constraints. The homebased model doesn’t have construction or leasehold expenses and typically carries an investment ranging between $50,000 and $75,000, depending on the franchise brand. This lower initial investment allows for the franchisee to get into business with lower capital commitments and look forward to a potentially higher return on investment. LOW OVERHEAD Another advantage of a home-based operation is that once the business is open and running, the overhead expenses associated with managing the day-to-day are very low. You can avoid a commercial lease and the high equipment costs that come with a restaurant or retail business. Since many run without staff or
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“Small business is a good thing for the economy, and home-based businesses are playing a huge role in that.” employees, the cost of operation is minimal. While working from home doesn’t necessarily mean fewer hours on the job, it does offer flexibility. Home-based businesses help improve work-life balance. You can spend more time with your family and create a schedule that works with your kids’ activities and home-improvement chores. WHY NOW? Why has this market segment expanded so greatly? The recession between 2008 and 2010 certainly helped. According to The Bureau of Labor Statistics, more than 8.7million jobs were lost from 2007 to 2010. This mass exodus of employment created a push for entrepreneurship, partly out of necessity and partly because professionals were feeling that the corporate world had become just as risky as venturing out on your own. During this time, employers who were hiring were preparing for another economic turndown and thus, paying far more conservatively than they were before the recession. NEW ENTREPENEURS The U.S. saw fewer high-paying employee positions and more unemployment and underemployment. Many of these recently unemployed folks had never owned businesses or been entrepreneurs, for which the franchise value proposition is strongest. Coming from professional office settings, these new entrepreneurs could easily transi-
tion to home office locations and were more comfortable with lower capital investments. Remember at the time, capital was difficult to come by as banks had tightened their lending and Small Business Administration (SBA) loans were extremely difficult, if not impossible, to obtain. This perfect economic storm pushed people towards home-based franchises and created a market for workfrom-home business owners. The increased interest led to new, innovative, forward-thinking franchises that offered everything from home handyman work like The Patch Boys® to professional event planning like EventPrep.® Accounting, financial planning, import/export businesses, and others launched franchise models, and the home-based franchise industry took off. SUSTAINABLE GROWTH Since then, the home-based franchise market has continued to see sustainable growth putting more and more people on the road to business ownership. According to the SBA, from 1996 to 2014, the number of small businesses in the U.S. had declined year over year, but in 2014, that trend reversed and more small businesses opened between 2014 and 2015. Perhaps this is due to what the SBA describes as “Micro Companies,” which are firms with 10 employees or less. One thing is for sure, though: Small business is a very good thing for the economy, and home-based businesses are playing a huge role in that.
January 2018 17
cover story
hottest
HOME-BASED
FRANCHISES Industry leaders reveal why home-based franchising is taking off.
H
By Jill Abrahamsen
ome-based franchising is taking off. Of course, this comes as no surprise given that these conveniently run businesses improve the quality of life for customers and provide work-life balance for owners. With low overhead and lots of flexibility, the home-based model is an ideal option for franchisees who want to see quick profits and greater profit margins. Home-based franchising offers many interesting niche services. Take the folks at PatchBoys®, for instance, who repair minor drywall damage without the hassle of calling a contractor. Then there are the everyday heroes at Restoration 1®, who are basically EMTs for your home. They’re available 24/7 to help with household emergencies, such as flooding caused by exploding pipes or from natural disasters. The energetic group at GYMGUYZ® come through with on-site personal training—you name the place, they get you into shape. Meanwhile the folks at Mosquito Joe® help get rid of those pesky bugs. And though they may have male-endings to their names, Mosquito Joe®, GYMGUYZ®, and Patch Boys® are quick to point out that women are some of their most successful owners. Here, home-based franchise leaders talk about their franchises and reveal the trials and triumphs of working at home. Could you be next?
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“If you’re willing to spend a few years like most people won’t, you can spend the rest of your life like most people can’t.”
JOSH YORK
Josh York
GYMGUYZ®
THERE’S NO SHORTAGE OF ENERGY, PASSION, OR ENTHUSIASM
from founder and CEO Josh York when it comes to describing his home-based franchise, GYMGUYZ.® Back in 2008, York founded the on-demand, personal-training service out of his parents’ New York dining room with nothing more than “a laptop and a vision.” He plans to grow GYMGUYZ® to be the “largest fitness brand in the next 15 years,” and so far, he’s right on track with 145 locations in 24 states, and 100 more planned for 2018. “It’s all about helping people,” says York. “At the end of the day, if you’re happy and can change lives, you’re successful.” What do you need to make it at GYMGUYZ®? “Drive, passion, and patience,” says York. “If you’re willing to spend a few years like most people won’t, you can spend the rest of your life like most people can’t.” The homebased model leads to success quickly. The start-up costs are low and the return on investment is high. Potential franchisees, most between the ages of 27 and 50, go through a six-step process to see if they are a good fit for the GYMGUYZ® culture. Some may have a fitness background, but that’s not a requirement—or even ideal. According to York, the most successful owners are business-minded franchisees. “We are looking for people to work on the business, not necessarily people who are in the business.” GYMGUYZ® is a hot franchise to own because it fills a need. Many people just don’t have the time to exercise at a fitness center. GYMGUYZ® offers on-demand personal training, meaning the gym comes to you. Trainers arrive at your house, your office, even a park, with a van full of equipment. It’s the ultimate in convenience.
January 2018 19
cover story
Gary Findley
GARY FINDLEY
RESTORATION 1®
WITH MORE THAN 25 YEARS EXPERIENCE IN THE FRANCHISE
industry, Gary Findley knows a thing or two about the business. The CEO of both Restoration 1® and Bluefrog Plumbing + Drain, Findley saw big potential in Restoration1® from the get-go. He knew this home-based business would require little overhead, produce high profit margins, and be recession-resistant. Over the last two years, Findley grew the company from 18 locations to more than 175. “The single biggest advantage for a homebased franchise is the ability for the operator to realize revenue quickly. You don’t have to wait to secure commercial real estate, secure permits, build out a location, pass inspections, and then consider yourself open for business,” says Findley. For Findley it wasn’t hard to see that Restoration 1® answered a need for homeowners. The company comes to the rescue day or night to help out with those unexpected emergencies—flood damage, fire damage, mold—that never seem to happen at convenient times. The idea is simple enough to be brilliant, but it’s the franchise factor that makes it worth taking on. Says Findley, “There is a serious difference between being a franchisee and an entrepreneur. Many of the greatest franchise opportunities were started by amazing entrepreneurs. They had big ideas when they founded these chains. But a lot the success is due to the franchise owners who followed their lead. Smart people don’t spend time and money on a franchise opportunity only to change a proven system. The genius of franchising is having a road map to follow.”
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Leo Goldberger
LEO GOLDBERGER
THE PATCH BOYS®
AFTER JUST A FEW MINUTES OF TALKING WITH THE PATCH BOYS®
founder and President, Leo Goldberger, it’s easy to see that he’s a no-nonsense guy. He runs his business with the same straight-shooting approach. The brand has enjoyed huge growth in just two years. “Our franchisees are up and open for business within weeks, and that is a huge plus for anyone who invests in a new franchise and wants to hit the ground running.” A simple concept, The Patch Boys® takes care of the common household problem of damaged drywall caused by clumsy accidents or water damage. These are usually jobs too small for contractors and ones most homeowners don’t have the time or skill to take care of themselves. What’s the biggest draw for home-based franchisees? “Profits and profit margins,” says Goldberger. “A brick and mortar setting eats away at—and slows down—your profit. With the home-based concept, you get to profit mode faster and with bigger margins.” His owners, or “partners” as he likes to call them, come from all walks of life. Many are in their 40s and 50s, stemming from the corporate world and tired of giving their all to someone else. They’re finally ready to put in the hard work for themselves. “A great amount of our franchisees are veterans, and we’re very, very proud of that. We have special promotions for the people who wore the uniform,” he says. “My partners are not only elevating the Patch Boys® brand, but they truly care and share ideas with one another and with corporate. Those are the kind of people we’re attracting and looking to build our futures with.”
“A great amount of our franchisees are veterans, and we’re very, very proud of that.” January 2018 21
cover story
Kathleen Kuhn
KATHLEEN A. KUHN
HOUSEMASTER®
HOUSEMASTER® PRESIDENT KATHLEEN KUHN LEARNED FROM
experience. As a franchisee for the brand since 1985, Kuhn has seen the business grow into an industry standard. HouseMaster® goes beyond the basic home inspection and offers additional services like mold testing, sewer scoping, and in-depth chimney inspections. “We really focus on the overall customer experience and process,” says Kuhn. “We take the time to educate our customers.” With a high franchisee-satisfaction rate, HouseMaster® attracts a loyal fan base. Many franchisees have joined to grow a retirement asset or to launch a family business. “Twelve percent of our owners are second-generation, and 24 percent have been in our system for more than 24 years,” Kuhn says. Kuhn has learned the challenges of having a home-based franchise firsthand. “Having a home-based business requires greater discipline and focus. When working from home, there are distractions, and often, family members may not perceive that you are essentially ‘at work.’ Being at home can make hiring office staff tricky,” she says. The upside, of course, is the payout. “Low overhead, faster path to positive cash flow, ease of expansion are just some of the pros,” Kuhn says. “Business owners that sign expensive leases or need to expand their facilities to grow their businesses often have lower margins and a much longer path to return on investment and positive cash flow.” So for Kuhn—and so many like her—it seems, there’s no place like home.
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John Ryley, owner of Dryer Vent Wizard® in Suffolk County, NY, enjoys the flexibiliy that comes with homebased franchising.
“The great thing about this business is that you can customize it to suit your lifestyle.”
JASON KAPICA
DRYER VENT WIZARD®
BORN OUT OF A NEED TO PREVENT DRYER FIRES, DRYER VENT WIZARD® is a home-based franchise specializing in dryer vent cleaning, inspection, and repair and replacement. Not only does keeping up on dryer maintenance help prevent fires, but it also saves energy. According to Dryer Vent Wizard® Vice President Jason Kapica, you don’t need to be an engineer or have any advanced degrees to run this business. The company taps into so many professional skills that it could be a great fit for any hard worker. “We can take a person from any background and teach them to do the work,” says Kapica. In fact, Dryer Vent Wizard® franchisees have diverse backgrounds—some are engineers, others are sales people, while others are stay-atJason Kapica home moms and marketing executives. “The great thing about this business is that you can customize it to suit your lifestyle.” Franchisees go through an extensive process to make sure it’s a good fit for everyone. “We like to sleep at night and don’t want to have unhappy franchisees,” says Kapica. To that end, Dryer Vent Wizard® educates franchisees about the business. To be successful, just follow the system. Franchisees are usually owner/operators at first so they can learn the whole business. “We offer extensive field training as well as classroom teaching,” says Kapica. “We also have a support system and are always there for our franchisees.”
January 2018 23
cover story
LOU SCHAGER
Lou Schager
MOSQUITO JOE®
THE CULTURE AT MOSQUITO JOE® IS ALL ABOUT FUN AND FAMILY.
With witty taglines (“Outside is fun again!”), creative commercials, bright colors, and a fun name, Mosquito Joe® is about making outdoor living a healthy and enjoyable part of life. “Our services let customers spend time outdoors without the nuisance of mosquitoes and other pests,” says COO Lou Schager. The Mosquito Joe® franchise family is made up of more than 140 franchise partners from 32 states and a variety of professional backgrounds: pilots, teachers, veterans, tech experts, small business owners, landscapers, stay-at-home moms, you name it. “We have owneroperators, investor-operators, husband-wife teams, and family businesses,” says Schager. If convenience is important to you, Mosquito Joe® is worth consideration. “Not only are we a home-based business, but we are a mobile business as well,” says Schager. “With the systems and software we have in place, franchisees can run their businesses from anywhere. It’s advantageous if franchisees need to travel or be away from home.” Work-life balance is a benefit to many Mosquito Joe® franchisees. “Many of our franchisees have families, and operating a Mosquito Joe® business out of their homes allows them to get the kids to and from school while successfully handling customer calls, scheduling, and routing,” says Schager. “Our added mobility also allows franchisees to be on the go and still manage a strong business, no matter where they are.”
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Franchisee Jack Sparks in Atlanta, GA, enjoys a mosquito-free picnic with his family (right). Mosquito Joe’s® clever commercials make light of how mosquitos can ruin a family barbeque (below) or the lengths moms will go to, so that kids are protected from mosquitos (lower right).
“Many of our franchisees have families. Operating out of their homes allows them to get the kids to and from school, while successfully handling customer calls, scheduling, and routing.”
January 2018 25
I got to the point where I was in the same pajamas for five straight days.
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CONFESSIONS
OF A HOME-BASED BUSINESS OWNER
A
By Jill Abrahamsen
s someone who has worked out of her home for many years, I am no stranger to blurring the lines between business and home life. I have spent many days working in my pajamas. I’ve been known to take my laptop to my son’s lacrosse games, and I have led conference calls while cooking dinner. My clients may have been oblivious to the fact that I’m taking care of my personal life during business hours, but the truth is, I never miss a deadline and always produce high-quality work. And I probably put in more hours than if I weren’t home-based. During the years when my children were small, conducting business from home was the only way I could manage work-life balance. For me, there are so many advantages to working out of my home. Instead of enduring a long commute, I now have the time for a morning workout. I can attend class parties or be home with sick children without falling behind. And when I am expecting a delivery, have a broken appliance, or the cable goes down, I can be home to answer the door without missing a beat. Running a home-based franchise is an ideal way to own a business and reap the benefits of working from home. There are so many industries that lend themselves to home-based franchising. The choices are vast and diverse—everything from home improvement businesses to financial consulting—so there’s something for everyone. When considering a home-based franchise, think about your personal work style. Do you like to be around people all day or do you prefer to fly solo? A homebased business can keep you social or isolated. Some keep your phone ringing
all day, while others offer quiet computer time. In some cases, you might have a home office but spend most of your time with clients in the field. Knowing how you like to spend your days will help you pick the right franchise for you. Of course, there is a downside to working at home: No matter what’s happening on the home front, you still have to get your work done. My clients have received emails from me at odd hours, on weekends, even on holidays. I have produced great work in the middle of the night and brainstormed new ideas at the crack of dawn, often rushing to my computer before breakfast to launch them. This style of work can take its toll and personally I think it should be an exception, more than the rule. Another downside is, for a very social person like me, working from home can get lonely. I’m on a first-name basis with my UPS driver, my letter carrier, and the cable guy. During harder days, my neighbors have seen me charge out of the house just to say hello. But they know the deal, since several of them have homebased offices, too. The cure? Passion for what you do. If you’re excited about your work, that will propel you through your day. As the old saying goes, “If you love what you do, you’ll never work a day in your life.” That’s true no matter where your office is based.
January 2018 27
Is a HOME-BASED business for you?
H
By Joseph Katz
ome-based franchising has become increasingly popular over the last decade, which hardly comes as a surprise. After all, working from home gives you the convenience of an easy commute (maybe just walking downstairs), offers more flexibility than the corporate world (schedule calls around the kids’ carpool), and lets you trim the overhead expenses that come with a storefront. More good news: These days, there is a home-based franchise opportunity for every budget and in every trade. Running a home-based business can require strict discipline though. You must be able to separate your home life from your work life, which can be tricky given they’re both rooted in the same space. So before you consider buying a business—any business—contemplate how it fits with your lifestyle. On the following pages, we list a few key tips that can help launch your home-based business on the road to success.
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January 2018 29
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Set up a home office that you only use for work purposes, so everyone gets the message: “I’m working”
» Get Motivated
Being your own boss is great, but without a manager looking over your shoulder, it’s on you to get things moving. Home-based businesses, especially early on, can have unpredictable challenges—people call in sick, shipments arrive late—so setting a realistic game plan each day and working ahead of schedule is beneficial. If you hit a hurdle, you’ll have time to deal with it.
» Get Organized
In any business, nothing helps you stay ahead of the game like excellent organization skills. Juggling multiple roles—president, marketing manager, human resources manager, sales, office manager, and tech support—is much easier with a plan in place. While you may have a handle on the big picture, there are still those little everyday things—scheduling appointments, staffing, invoicing—that you’ll have to stay on top of to keep your business running smoothly. Come up with systems and schedules that work for you—maybe you pay your invoices every other Friday or order from vendors every Wednesday morning. Having a game plan right out of the gate is the best way to prevent endless rounds of catch-up.
» Set Boundaries
If you’re launching a home-based business, it’s important that everyone at home understands the implications. While you may be at home physically, you’re also working, so you may not be available to help with homework or pick up the dry-cleaning. Set up a home office that you only use for work purposes, so everyone gets the message: “I’m working.” Just like in a big corporation, you always want to convey professionalism. When you’re on calls with clients, it’s best they don’t hear the kids arguing or the dog barking in the background. On the flip side, while it’s tempting to work late, scarf down dinner, and jump back on the computer, it’s wise to walk away from the office at the same time every day, too. This way, your clients know when you’re available to them—and so does your family. Work-life balance is important—I mean, isn’t that why you chose a home-based business to begin with?
January 2018 31
No Place Like
HOME
by Lisa Welko, Certified Franchise Consultant
Home-based franchises offer essential services and a great office environment: Your House. Which ones are the most lucrative?
W
hen you hear the phrase “home-based franchise,” you might picture waking up, grabbing a cup of coffee and sitting at your desk in your pajamas. In fact, your usual daily rituals—dressing, hair-combing, showering—might feel kind of optional. But while some businesses offer work-at-home opportunities, most home-based franchises offer services performed out in the community, where clothing is definitely required. With the right opportunity, however, franchise owners can enjoy the advantages of working from home while trimming the cost of overhead. On the following pages, we list a few industries that let you manage a franchise from your kitchen table, bedroom, or wherever you feel like setting up shop.
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January 2018 33
No Place Like
HOME Lucrative home-based businesses
» Senior Care Thanks to those baby boomers, the number of American senior citizens is growing. In fact, approximately 10,000 people will turn 65 every day for the next 20 years. This means a demand for more senior healthcare—and more home healthcare. The global home healthcare sector could see revenues reach $300 billion by 2020 according to www.franchisehelp.com. This makes non-medical home healthcare the best franchising opportunity within the senior-care industry.
»
Home Improvement
“Nesting is investing” according to a report by Harvard’s Joint Center for Housing Studies. With today’s hectic schedules, homeowners often prefer to have professionals tend to their home-improvement needs. That’s why so many professional services— property restoration, painting, windows, deck expansions, kitchen and bath overhauls, you name it—are taking off. Statistics show home-improvement franchises are a $300 billion market, which is only expected to grow.
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» Property
Management
Business is booming in the property management arena, one of the fastestgrowing industries in the country. More than a third of residential housing in the U.S. are rentals. Each of those rentals needs a property manager—someone to find and screen tenants, collect rent, enforce lease agreements, handle maintenance and accounting, among other tasks. Sound interesting? With the ratio of renters to buyers on the rise, this $69 billion industry should continue to grow.
»
Pet Care Americans love pets. According to the American Pet Products Association, 68 percent of U.S. households, or about 85 million families, own a pet. Baby Boomers are launching their adult children into the world and replacing them with dogs and cats, while Millennials are adopting and spoiling them. This makes for a booming business opportunity—Millennials could be your customers for decades. Niche or specialty pet-care services are the best opportunities—think in-home training, mobile grooming, dog walking, and pet-sitting services. The Census Bureau projects faster- than-average growth for various parts of the industry through 2020.
January 2018 35
No Place Like
HOME Lucrative home-based businesses
»
Estate Moving
According to the U.S. Census Bureau, the average American moves more than 11 times in his life, a plus for the moving and estate sales franchise industries. If that weren’t enough, with more than 15 million Americans caring for a loved one with Alzheimer’s disease or dementia, family members often have to move mom or dad to assisted-living facilities. Estate movers, offering moving, storage, estate sales, and cleanout services, handle the details and reduce huge amounts of stress for these families.
Cabin Fever Buying a home-based franchise? Prepare for the challenges. Here are a few tips to stay productive and avoid feeling stuck in the house. > Have a separate office space for work. This will help you focus on work and avoid distractions, like that dishwasher that no one has bothered to empty, or the laundry that’s piling up. > Set a work schedule. Having a set routine will help you keep your work life separate from your home life. Build in some leeway for unexpected meetings and appointments. > Invest in local marketing. Your home is not storefront, so you’ll need to advertise to get the word out about your business.
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January 2018 37
in·ter·view
\�in-tər- vyü \ � noun
1. A Q&A session with experts in the franchise industry 2. Christopher Conner shares his industry experience
QA &
Franchise Marketing Systems’ Christopher Conner
speaks with us about the franchise industry and offers advice to folks who are considering a franchise investment. For most of us, investing in a franchise or any business is an entirely new and potentially daunting endeavor. Conner has worked in franchising for more than 15 years and has expertise in a wide range of franchise systems. We asked how best to approach a franchise investment and what to be aware of throughout the process.
QA
What inspired you to get into the franchise market? I didn’t really plan to end up in franchising. I had worked for some larger corporations in a cubicle and didn’t have any energy or passion for what I was doing. I landed a position with a franchise consulting firm where I started working with small business owners and new franchisees. It was fun to work with people who had it all on the line. I love entrepreneurs and have so much respect for anyone who is willing to take the risk to go out on his or her own. Franchising was a vehicle to get me involved with small business owners.
Q
What is your background and how do you leverage it to help people in franchising?
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A
My experience is primarily in marketing, business development, and finance. I have an MBA in finance, so in most cases, I can help people decipher franchise investment opportunities and evaluate franchising. I have two roles as a franchise consultant. The first is analyze a business model and determine if it makes sense to leverage the franchise distribution channel. In this role, I have the opportunity to work with business owners from all walks of life and all around the world. I evaluate the opportunity and recommend a viable expansion strategy for their company. If together we decide to move into franchising, I help execute the franchise development program.
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franchisedictionarymagazine.com January 2018 39
in·ter·view
Q
What types of things should you consider when looking at franchise opportunities?
A
There is really no such thing as a “best” franchise for everyone. A good fit depends on what a buyer wants to get out of a business. Some people are great workers and enjoy the trade they are exploring, while others are interested purely in numbers and return on investment. I ask a lot of questions and get to know someone before making recommendations. Consider defining your goals for what you would enjoy doing on a daily basis, which areas of business you have passion for, and, of course, your financial goals. Then comes the hard part—do the math and identify in which franchises you can afford to invest. Make sure to account for working capital and the hard expenses needed to get the doors open.
QA
How do you choose a brand to fit your goals?
QA
There are so many franchises on the market today—I’ve seen quotes of more than 3,400 active franchise systems in the U.S. alone. These days, when I travel abroad I see that each country has its own stable of new franchise brands, while in the past, American franchises dominated the international franchise landscape. The choices can be overwhelming, even for a seasoned business investor. Seek guidance from people who know the ins and outs of the industry. Take your time and ease into business decisions. Use all of the information that is available to you as a franchise investor prior to making a decision. Know what’s in your franchise disclosure documents and leverage that information before committing to a franchise investment.
Where do you see the franchise industry headed? I’m very optimistic about the small business market in the U.S. right now, and I’m not alone. My optimism is driven by the current political climate, a weaker job market, enthusiasm for entrepreneurship, and the economy. Franchising is a powerful vehicle for helping people get into business for themselves. We are seeing so many great brands and new industry segments come to fruition through franchise growth. Since the recession in 2008, we’ve seen a complete reinvention of several traditional markets and an enormous expansion of the entire franchise market. I’m a big advocate for business ownership and entrepreneurship. Franchising could provide a great road map for anyone considering business ownership.
About Christopher Conner Chrisopher Conner is the founder of Franchise Marketing Systems, a franchise consulting firm based in Atlanta, Georgia. The firm has consultants across the United States and supports a wide range of new and mature franchise systems to develop, expand, and grow franchise networks. For more information on Christopher Conner or his firm, visit FranchiseMarketingSystems.com.
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Before you
Jump In to a franchise
look for us THE RESOURCE FOR FRANCHISEES
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January 2018 41
How to
Evaluate a
FRANCHISE Investment by Christopher Conner
B
uying a franchise is similar to investing in a business. The same attributes are required in order to make a good buying decision. There are unique aspects to a franchise investment compared to a traditional business purchase as well. Our firm, Franchise Marketing Systems, offers advice to businesses and franchise buyers on which franchises to invest in and which to purchase. The following aspects of the franchise buying process should be addressed when purchasing a franchise brand and evaluating the market for opportunities.
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1. Look at the consumer market.
Consider the industry of a prospective franchise before evaluating the franchise itself. Make sure people are buying the product or service a franchise sells, because you will sell that same commodity if you purchase that franchise model. Consumer markets are either growing or shrinking, very seldom do they just stay the same. Review consumer trends and identify opportunities or risks that are potentially part of this industry segment. If you are purchasing a retail franchise, make sure that Amazon and e-commerce won’t wipe out your value proposition. If you’re investing in a food-service franchise, verify that consumer buying trends will support it.
2. Review the data.
The franchise disclosure document (FDD), franchise industry research, and franchise data available to you prior to making an investment decision can make a significant impact on how well you do with your franchise investment. Companies like FRANData offer loads of information on businesses and franchises you can use. The Small Business Association (SBA) offers lots of good insight and the FDD lists franchisees both in and out of the system. Make the calls, get on a plane, and meet the experts.
3. Compare franchise offerings.
Instead of fixating on one brand, broaden your horizons and consider all of your buying options. Carefully weigh the positives and negatives. Go through the buying process with at least five franchises to understand how the fee structures stack up in each brand. There are a lot of great franchises on the market—some good, some ugly. With due diligence, you can uncover which ones are potentially right for you.
4. Understand your FDD lists. The FDD is the legal structure of the franchise relationship and is essentially the details of the franchise commitment. A long, arduous document, the FDD can be a challenging read. Hire a franchise attorney to interpret the document and explain how the terms and conditions could affect you. A franchise consultant can guide your decision-making process and help you choose the right franchise. Making a $1,000 to $3,000 investment in good legal and business counsel can save hundreds of thousands of dollars in the long run. You can find a franchise brand worthy of investment, no matter which market you decide to pursue. The key is to find a brand and a business model that suits your goals, aspirations, and potential. Take the time to go through the FDD with a fine-tooth comb, and consider your options carefully before making a move.
January 2018 43
spot·light
\�spät-�līt \ noun
1. Trending franchise businesses you’ll want to hear about 2. A great place to show off your franchise
Snapology®
Restoration 1® A turn-key business opportunity with low overhead and no buildout costs, Restoration 1® is the fastest-growing home-restoration franchise in the country. An opportunity with low costs and a proven business model, a Restoration 1® franchise is designed to be easy to run and easy to scale, with a focus on providing exceptional customer service to home and property owners in times of crisis. For more information, email info@restoration1.com or call 877-249-2867.
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Title Boxing® Looking for homebased franchise with a low investment and high return? Snapology® provides the tools to operate and manage a thriving business. Based on collaborative principles, Snapology® has a flexible model that allows business to grow based on your goals. Snapology® is a partner for STEAM programs, offering year-round programs in schools, community facilities, and homes. For more information, visit snapology.com.
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If you’re passionate about helping people and are driven to succeed, then Title Boxing® is a franchise for you. Title Boxing® is the only boxing club committed to giving all bodies, all weights, all abilities the most empowering workout of their lives. Title Boxing® provides an authentic and transformative, full-body workout that unlocks a member’s inner power. Title Boxing® has proven success in more than 160 locations in 36 states. For more information, visit titleboxing.com.
GYMGUYZ®
Mosquito Joe® The mosquito-control industry is booming, and there has never been a better time to invest in a Mosquito Joe® franchise. Mosquito Joe® provides a simple, low-cost business that provides more time with your family and the freedom of working for yourself. With extensive training and support and a recurring revenue model, you can thrive as a business owner in a high-growth market. Homeowners are realizing the necessity of mosquito-control services, and joining Mosquito Joe® can make a difference in your community. For more information, visit mosquitojoefranchise.com.
With more than 160 locations, in 24 states and two countries, GYMGUYZ® is the first home-based mobile personal training and fitness franchise company. GYMGUYZ® offers individualized one-on-one workouts, group instruction, and corporate fitness. Trucks are stocked with state-of-the-art fitness equipment enabling the GYMGUYZ® coaches to provide clients with customized workouts. GYMGUYZ® offers a low investment, turn-key model. They provide support to the franchise owners right from inception and throughout the entire process. For more information, call 855-GYM-GUYZ.
Healthy You Vending® More and more people are taking note of what they eat. Instead of fat-laden chips and sugary candy bars, Healthy You Vending® offers a variety of nutritious options for on-thego snacking. Since 1999, the company has helped thousands of operators position themselves as vending professionals. The demand for healthy food choices is exploding. With more than 2,500 healthy vending products to choose from, you will be able to provide the exact product mix that your customers are looking for. For more information, visit healthyyouvending.com.
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spot·light Dryer Vent Wizard® You’ve Got MAIDS® Home services are a multi-billion dollar industry enjoying double-digit growth. House cleaning, in particular, is a growing industry with increasing demand. Low start-up costs and high potential revenue are just some of the benefits that come with You’ve Got MAIDS® winning strategy. Operating expenses are low and business hours are extremely family-friendly. The proven “System for Success” is based on years of franchise excellence. For more information, visit youvegotmaids.com.
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HouseMaster® A great option for home-based franchising, Dryer Vent Wizard® is the only national brand with a sole focus on cleaning, installing, repairing, and altering dryer vents. These unique services are in demand. Approximately 80 percent of all U.S. households have a clothes dryer, and the vents for those dryers will clog and become inefficient over time, making them potential fire hazards if they are not serviced by professionals. For more information, visit dryerventwizard.com, or call 866-498-7233.
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A standard in the home-inspection industry, HouseMaster® has been in business for more than 37 years. This home-inspection service goes beyond the basic inspection and offers services such as mold testing, sewer scoping, and in-depth chimney inspections. Franchisees have low overhead, flexible schedules, and they enjoy large profit margins. HouseMaster® provides extensive training and support for the owners. HouseMaster® has single owner-operators as well as an executive model that allows franchisees with strong management skills to put themselves to work and hire employees to do the inspections. For more information, visit opportunity.housemaster.com.
Kono Pizza®
Preppy Pet® If you love animals— especially dogs—running a Preppy Pet® franchise could propel you to new levels of career satisfaction. Preppy Pet® franchises offer doggie day care, pet boarding, grooming, and adoption services. But it’s not your traditional kennel. Each facility provides a suite for each guest. Once pet owners visit, they always return. The goal of Preppy Pet® is to provide a fun, affordable, and rewarding franchise. For more information, call 407-420-1060 or visit preppypet.com.
An original idea that brings the traditional triangle-shaped pizza pie slice into a cone, Kono Pizza® is all the rage. It’s cooked on the spot, healthy, fresh, and you can eat it anywhere. The business model is portable and flexible, allowing franchise owners and licensees to operate food carts, trucks, and trailers. Franchise owners don’t have expensive buildouts, high overhead, or the worry of the seemingly difficult future of retail. Just like the cones, the business model is portable and flexible. Kono Pizza® franchise owners go where the people are. For more information, visit konousa.com.
The Patch Boys® Want to run a homebased business with low overhead and high profit margins? Check out The Patch Boys.® America’s most trusted drywall repair company, 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 repair 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 thepatchboys.com.
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last word
\ last \ \ wərd \ noun
1. An inspiring story about a famous franchisor 2. What led to the success of Five Guys®
Five Lessons From Five Guys® How one couple and their own “five guys” launched a successful franchise and got America excited about burgers again. 1. Start Small. Back in 1986 when Jerry and Janie Murrell launched Five Guys,® they started with one take-out burger joint in Arlington, Virginia, right outside of Washington, DC. 2. Create a great product—and let it speak for itself. The Murrells never tried to re-invent the wheel. They knew America loved burgers, so they decided they’d make the best burgers their town had ever seen. Each day, they’d make juicy patties with fresh ground beef grilled on the spot. Before they knew it, the couple had developed a serious fan base—devout, regular customers who spread the word about their business for them. 3. Take time to perfect your idea. Instead of growing furiously, the Murrells took time to perfect their idea. During the 1980s and 1990s, the Murrells examined their business carefully and they ironed out the wrinkles before expanding. By now, the press had caught on. When they began to franchise, they started in nearby states by where there was already a Five Guys® buzz. 4. Set a standard. Five Guys® set themselves apart by offering a fast meal using only fresh ground beef. The business claims there are no freezers in any Five Guys® locations, just coolers. All burgers are cooked on the spot, so nobody gets a burger that’s been sitting under heating lamps for hours. Even the fries are fresh-cut, and they’re cooked only in heart-healthy peanut oil, which is free of trans fat and cholesterol. 5. Expand. Sure, make your move strategically—but make your move. It has been 30 years since the Murrells opened the first Five Guys,® and today there are 1,500 worldwide and 1,500 more on the way.
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THE
THANK YOU
TOUR
2018:
DEDICATED TO OUR VETS
thepatchboys.com/thankyoutour
