FranchiseDictionary niche FranchiseDictionary BEAUTY brands FranchiseDictionary MARCH 2018
FRANCHISEDICTIONARYMAGAZINE.COM
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
BLO® Blow Dry Bar’s
CEO knows a great opportunity when she sees it
THE ABC’S OF FRANCHISING
debunking
5 Franchising MYTHS
50
A perfect pawprint for franchising success
18
A new direction in the business of beauty
10
Meet 2018 NextGen Winners
$5.95
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March 2018 3
con·tents
kən�tents/ noun
1. Your March lineup of stories and features 2. An amazing resource for franchisees
18 DEPARTMENTS
7 8 10 14 16 38 48 50 4
Letter from the Editor Buzzword
What franchise experts are talking about.
Update
NextGen Winners announced and the latest in franchising.
Franchisees of the Month
A heroic duo moves their business to help hurricane victims.
Entrepreneur
The founders of Flatbread Grill® are determined to continue the family legacy.
Interview
Career coach Susan Scotts shares her expertise.
Spotlight
What’s trending in the franchise industry.
Last Word
How Camp Bow Wow® became top dog.
FranchiseDictionaryMagazine.com
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16 26
16 26
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MICHAEL WELLS & MIKE TERRONES
Restoration 1® Round Rock, TX
14
50
FEATURES
24 26 34 42 44 46
The Business of Beauty
The industry has come a long way since one-size-fits-all spas.
Confessions of a Guilt-Free Spa Enthusiast Why a small investment of time and money works wonders.
Niche Beauty Franchises
The beauty industry’s new direction means great things for investors.
New Tricks of the Trade
How things have changed in the health and beauty market.
4 Reasons Why Franchise Brokers Survive and Thrive What can a franchise broker do for you?
IFA2018 Coverage
This annual franchising event covers a lot of ground.
Debunking the 5 Most Common Franchising Myths Learn the facts before jumping into—or overlooking—an opportunity.
March 2018 5
FranchiseDictionary on the cover FranchiseDictionary FranchiseDictionary niche FranchiseDictionary BEAUTY brands FranchiseDictionary THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING MARCH 2018
FRANCHISEDICTIONARYMAGAZINE.COM
$5.95
THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
BLO® Blow Dry Bar’s
CEO knows a great opportunity when she sees it
THE ABC’S OF FRANCHISING
debunking
5 Franchising MYTHS
50
10
18
A perfect pawprint for franchising success
A new direction in the business of beauty
Meet 2018 NextGen Winners
If you’re looking into investing in a beauty franchise, you’ll be happy about the new direction the industry is taking. Niche shops focusing on one service are disrupting the market and creating opportunities for investors.
FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary THE ABC’S OF FRANCHISING
President: Joseph D. Katz
info@franchisedictionarymagazine.com THE ABC’S OF FRANCHISING
Editor-in-Chief: Jill Abrahamsen
editor@franchisedictionarymagazine.com
Senior Editor: THE ABC’S OF FRANCHISING Mary Lynn Mitcham Strom
Contributors: THE ABC’S OF FRANCHISING Christopher Conner, Don Daszkowski, THE Eric Schechterman, ABC’S OF FRANCHISING Susan Scotts, Lisa Welko Marketing/Sales: Ruby Valencia (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
Way back when, you may have felt indulgent getting a massage or having your nails done. But these days, people—millennials in particular—seem to think of such services as necessities, not extravagances, that contribute to overall wellness. Beauty franchisors have caught on to this thinking, and they’re making it easier—and more affordable—than ever to step up wellness efforts. Instead of full-service spas, specialty beauty shops are coming on the scene, offering expertise in a single service, say massage or manicures or waxing. So now getting a leg wax or hair blowout saves consumers time, money, and it’s as accessible as the nearest strip mall. In this issue, you’ll learn all about the franchised beauty industry. “Niche Beauty Franchises” (page 26), for example, showcases amazing entrepreneurs who created a beauty brand by offering a specialized service. In “New Tricks of the Trade” (page 34), Christopher Conner explores the shift in the beauty industry and explains how it evolved over the last decade. “The Business of Beauty” (page 18) introduces you to beauty segments you might not even be aware of (yes, eyelash extensions is a real business prospect). Speaking of business opportunities, last month I had the pleasure of attending the International Franchise Convention (IFA2018) in Phoenix, Arizona. This impressive event brought together almost 4,000 franchising professionals to share, learn, and network. Don’t worry if you couldn’t make it—we’ve recapped the event on page 44. As always, we hope you enjoy the issue. And if you’re in the market for a franchise, keep reading—there’s a beautiful opportunity on every page. All the best,
Jill Abrahamsen Editor-in-Chief editor@franchisedictionarymagazine.com
March 2018 7
buzz·word
\ 'bəz-'wərd \ noun
1. A compilation of franchising trends 2. What franchise experts are talking about
Why Franchisors Love Vets
Being in the military requires discipline, perseverance, and the ability to follow a system. Incidentally, these are the same qualities needed to run a franchise business. Veterans bring a lot to the table when it comes to franchising, and franchisors are actively recruiting these leaders to grow their brands. Started by army veteran Jerry Flanagan, JDog® Junk Removal and Hauling will only award territories to veterans and their families. “Our junk removal services are delivered the military way—with respect, integrity, and trust. We arrive on time, we guarantee our prices, and we respect our customers’ time and property,” says Flanagan. ”I can measure success by how many people are thanking a veteran.” G-Force™ Franchising recently
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launched a parking lot-striping franchise opportunity exclusively for vets. “Veterans have the best leadership training,” says CEO and founder, Jack Child. In fact, many franchisors give back to veterans by offering incentives. The UPS Store® offers $10,000 off the franchise fee. The PatchBoys® Drywall Repair dubbed 2018 “The Year of the Vet,” and offers veterans a 20-percent buy-in discount and low down payments. “Veterans are consistently successful franchisees,” says Leo Goldberger, founder and CEO. Want to learn more about perks for veterans in franchising? Check out VetFran (vetfran.com), a network of more than 650 brands that offer financial discounts, mentorship, and training for aspiring veteran franchisees and veterans seeking employment.
Spaulding® Decon franchisee Todd Olson and his crew on a meth cleanup job (left). Olson with son, Colton Ellis, his biggest fan and “CEO” (below).
From Sales to CSI A unique franchise model offers this dad a rewarding—and profitable—new career. Selling RVs was not rewarding for shop owner Todd Olson. He wanted more—a lucrative career but also one that made a difference in people’s lives. He sold his business and took more than a year off to decide what he really wanted to do. He came to the conclusion that unlike RV sales, which answered a customer’s wants, he’d be happier if he could satisfy a customer’s needs. He desired to come away from his work day feeling fulfilled. Olson sought the help of Integrity Franchise Group’s Lisa Welko. She showed him several brands including Spaulding® Decon, a decontamination service that provides crime scene, hoarding, unattended death, and methlab cleanup. “Spaulding® Decon was such
an interesting concept, I just kept going back to it,” says Olson. “What really sold me was meeting the founder, Laura Spaulding-Koppel. She has a true passion for the business. I could see it right away.” Olson went into business in 2017 and never looked back. He hit the ground running with huge jobs. “Immediately, I had a $25,000 bat-dropping removal gig. I’m about to start a $92,000 meth-lab cleanup. And the margins are high, like 80 percent high,” he says. Although this work is not for the faint of heart, it has been a great fit for Olson, who finally feels fulfilled by his work. “Spaulding® has a great support system and gives franchisees the tools and training needed for success. Plus, my 5-year old thinks his dad is really cool.”
Tradeshow Travels
WE HAD A BLAST AT THE NY/NJ Franchise Show in February. The newest addition to our team, Ruby Valencia, got a crash-course in franchising by working our booth. Ruby will be supporting the magazine in both marketing and sales roles. Stop by and see us at the Chicago Franchise Show, March 24-25.
MARCH SHOWS The Franchise Show March 10-11, 2018 franchiseshowinfo.com Shriners Auditorium Boston, MA
The Franchising Expo and Business Opportunities March 17-18, 2018 franchisingexpo.com International Convention Center, Sydney, Australia The Franchise Show March 24-25, 2018 franchiseshowinfo.com Donald E. Stephens Convention Center Chicago, IL
March 2018 9
up·date
\�əp- dāt\ noun �
1. The latest headlines in the franchise industry 2. Quick news bites to inspire you
A Winning Team
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CLEAN JUICE® WINS GRAND PRIZE AT THE 2018 NEXTGEN GLOBAL COMPETITION Landon and Kat Eckles, founders of Clean Juice Franchising®, LLC, took first place in the NextGen in Franchising Global Competition, earning a $10,000 cash prize. Since the program’s inception in 2015, nearly 2,000 millennial entrepreneurs from more than 75 countries have applied. This year nearly 900 applicants from around the world competed for 20 spots at the competition. The couple launched the brand in 2015—the only USDA-certified organic juice bar franchise—with the mission of inspiring others to be healthy in body and strong in spirit. “We are so thrilled to have been a part of the NextGen competition this year,” says Kat Eckles. “Meeting other young entrepreneurs, spending time learning from seasoned industry executives, and getting the opportunity to do some intense problem solving were all invaluable experiences that will remain with us long after our weekend at the IFA’s annual convention.”
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In brief TAKE IT FOR “GRANTED”
Flexing Muscle GOLD’S GYM® PLANS HUGE EXPANSION Gold’s Gym® announced plans to expand beyond its 700-plus locations in 28 countries around the world. Gyms are planned for Europe, China, and Qatar. Domestic franchise development also targets another 25 gyms in the U.S. across markets, including Tampa and
Orlando, Florida; San Jose, California; Atlanta, Georgia; and the New York metro area. “Our global footprint is in the best shape financially and physically to make 2018 our strongest year-to-date,” says Ken Phipps, Director of Global Franchising Development for Gold’s Gym®.
Dream Cream BEN & JERRY’S® LAUNCHES LO-CAL ICE CREAM WITH FUN NEW FLAVORS Now you can have your Ben & Jerry’s® and eat it too. The Vermont-based brand has created Moo-phoria,™ a yummy line of light ice cream with fun new flavors. Each half-cup serving of Moo-phoria™ has 140-160 calories. And like all Ben & Jerry’s flavors, Moo-phoria™ doesn’t have artificial sugar substitutes, sugar alcohols, and it sources organic milk and cream for the base mix of each Moo-phoria™ flavor.
For this tax season, Liberty Tax® has launched a customerreferral incentive program supported by Augmented Reality (AR) in honor of the 18th president of the United States. Liberty Tax® clients can download a free augmented reality app, AppAR8 (Google Play Store, Apple Store) onto mobile devices. Users can watch an animated President Grant endorse the $50 incentive for those who refer new customers and have paid tax preparation at Liberty Tax.
A TREAT TO MAKE ANYONE’S EYES SMILE After you finish your corned beef and cabbage this St. Patrick’s Day, head over to Dairy Queen® and try out the Mint OREO® Blizzard®. The seasonal favorite is a cool, sweet, and crunchy blend of OREO® cookie pieces and crème de menthe, blended together with creamy DQ® vanilla soft serve.
March 2018 11
up·date
Removal Reunion
In brief
SIGN OF THE TIMES At this year’s FASTSIGNS® International Convention in Houston, Texas, FASTSIGNS® franchisees and their employees, vendors, and FASTSIGNS® International, Inc.’s corporate staff participated in the second “FASTSIGNS® Community Giveback” and donated care packages for the Michael E. DeBakey Veterans Affairs Medical Center. During the FASTSIGNS® “Community Giveback Breakfast with a Purpose,” 375 care packages were assembled. Drawstring bags were filled with blankets, socks, hats, playing cards, puzzle books, personalhygiene items, and hand– written notes. Members of the FASTSIGNS® International corporate team visited the VA medical center to deliver the care packages along with a banner thanking military members for their service.
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JDOG® JUNK REMOVAL ANNOUNCES ITS FIRST ANNUAL CONVENTION Over the past three years, JDog® Junk Removal, a national franchise organization dedicated to providing business ownership opportunities to veterans, has awarded more than 400 franchise territories across 36 states and has created more than 1,000 veteran job opportunities. To celebrate this momentous growth and to further inspire ongoing success amongst the veteran network, JDog® Junk Removal has announced its first annual convention. JCON, will be held March 8-10, 2018 in Malvern, Pennsylvania. “JCON, JDog® Junk Removal’s first annual convention, honors the passion and camaraderie of our franchise owners,” says Jerry Flanagan, Founder and CEO of JDog®.
A Brand’s New Look STAYBRIDGE SUITES® UNVEILS NEW DESIGN AT BUSINESS TRAVEL SHOW Staybridge Suites® unveiled a new design for future openings at the Business Travel Show in London. The new communal spaces will offer even more places to work, meet, and relax. The flexible design and communal kitchen layout breaks down the barrier between hotel guests and staff, giving
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it a more home-like feel. “Staybridge Suites® consistently scores highly in guest reviews but that doesn’t mean we want to rest on our laurels. As business-travel needs change, so do our hotels,” says Mike Greenup, Vice President, Brand Management, Staybridge Suites®.
Do you know an outstanding franchisee who does great things on and off the field? Nominate him or her to be our next
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editor@franchisedictionarymagazine.com THE ABC’S OF FRANCHISING
THE ABC’S OF FRANCHISING
January 2018 13
fran·chi·see \ fran-chī-zē, -chə-\noun
1. An outstanding franchise owner 2. How two men went from corporate cogs to local heros
MICHAEL WELLS & MIKE TERRONES
Restoration 1® Round Rock, TX
A
By Jill Abrahamsen
s layoffs and downsizing started happening at the struggling homeservices company where Michael Wells worked for more than 15 years, he knew it was just a matter of time before his number would be up. “I could see the writing on the wall,” he says. “Making a career change was not an easy decision, but I knew it was time for me to do something on my own.” Wells took a couple years to explore what he really wanted before he, and former co-worker Mike Terrones, launched Restoration 1® of Round Rock, Texas, in 2016. Looking for the right fit, Wells took some online personality tests to help narrow the choices. “The tests helped me uncover what makes me tick. I like helping people, it’s in my DNA. That’s how I’m wired,” Wells says. Little did Wells know that soon he would not only be helping people, but he would become a local hero. The next step for Wells was meeting with a broker who showed him some options. He landed on Restoration 1®, a fire and flood damage restoration company. It wasn’t hard getting Terrones on board. He knew it was a great business model, and Restoration 1® had a stellar reputation for success.
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“It was life-changing being
able to help these people. It was the most meaningful thing I’ve ever done.”
Mike Terrones (opposite, far left) and Michael Wells, (opposite, left) came to the aid of Hurricane Harvey victims. The National Guard planted an American flag in front of their truck (above, left) and thanked Terrones and Wells for working and not just “showing up.” Hurricane Harvey’s wrath put homes under water (above, right) in the town of Humble, Texas.
Even with a solid plan, it was a huge risk, but one they were willing to take. “We took a chance on our own abilities rather than just being a cog in a giant machine,” Wells says. Wells was happy with his decision and he really enjoyed the work. The men got through their first year with a few growing pains and were finally settling into a routine. Then Hurricane Harvey hit. It was August 2017 and Gina Roberson—a corporate employee for Restoration 1® who lived in Humble, Texas—called on Wells and Terrone for help. They answered the call in a big way. The town of Humble was hit so hard, the entire neighborhood was under water. Residents were in despair, and because of a lack of insurance, they couldn’t get anyone to help with the water damage and mold remediation. Wells and Terrones stepped up by moving their whole operation to Humble—about two and a half hours from their
homes. They began restoring houses one by one. Wells and Terrnones made due by camping out on the second floor of Roberson’s home. Under miserable conditions, they worked around the clock for more than a month. No power. No water. No air conditioning. “These people just lost everything. The devastation was overwhelming,” Wells says. Although it wasn’t easy, leaving their families and moving their business away from their own territory, Wells is grateful for the experience. “It was life-changing helping these people. It was the most meaningful thing I’ve ever done.” Now the men are back to a routine at home and still get to enjoy helping people—but on a more manageable scale. They continue to learn and build their business, Wells says, “This business gives us a long-term viable financial option. We have made a few mistakes along the way, but we’ve made them together and learned to move on.”
March 2018 15
en·tre·pre·neur änn-trə-p(r)ə-'nər\noun
1. One who manages and assumes the risks of a business 2. Passion and hard work drive success for these sisters
W
By Jill Abrahamsen
hoever says millennials are lazy never met the Esendemir
sisters. Rock-star entrepreneurs, Fusun, Gonca, and Arzu are all about hard work and perseverance. Back in 2007, when the 20-something, Turkish-American sisters were just coming of age, they opened the first Flatbread Grill® in Montclair, New Jersey. While their friends were out partying and having fun, these ambitious young women were concentrating on building a business. And build they did. Their vision was a fresh-casual restaurant based on traditional Turkish fare at affordable prices. The menu features soups, gourmet salads, platters, and sandwiches, all paired with a variety of traditional breads baked daily on site. While growing up, the Esendemir sisters saw their parents survive tough economic times. They realized the sacrifices their parents made as immigrants. These life lessons taught the girls to work hard and stick together. When their parents became ill, the girls stepped up to help and continued their legacy of building the American dream. Getting laid-off from her job as a technical engineer prompted Fusun, the eldest sister, to start her own business. She recruited Arzu, the youngest sister, who had just graduated with a degree in business and finance. The two then approached Gonca, who was in her last semester of a BFA program
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in film making. They agreed to join forces and started laying the groundwork for Flatbread Grill®. The sisters met many obstacles on their journey. They were told that their idea would never work. In the Turkish culture, men were the restaurateurs. “It was unheard for a woman to stand in front of a grill making kabobs,” says Gonca. Even their own father was skeptical at first, but he knew his girls could do anything they put their minds to. The sisters built the entire concept themselves. They ran the restaurant and did their own marketing and branding. They even did the baking at first and were hands-on in all areas. “For the first three years of building this business, we only slept about four hours a night. Sometimes, we just camped out at the restaurant, so we didn’t have to drive home. No task was beneath us. We were mopping, taking out the garbage, you name it,” says Arzu. Another challenge for the young sisters was being taken seriously by the business world. “We heard countless times, ‘You look too young to be doing this,’’’ Arzu says.
The Esendemir sisters, from left to right, Gonca, Fusun, and Arzu.
“We heard countless times from people, ‘You look to young to be doing this.’” Signing a franchise deal with Fransmart helped the sisters gain more credibility, although they sometimes still encounter push-back from those accustomed to dealing with men. “We have to prove ourselves and work a lot harder than any man in this industry,” Gonca says. With a new location in Hoboken and one coming to Jersey City this spring, Flatbread Grill® is taking off. In fact, the sisters have offers from potential franchise partners coming in from all over the world. The trio is now focused on growing the business. Their aim is to have more than 300 locations around the world in the
next five years. But they are not willing to award their franchise to just anyone. “We are looking for franchisees, who are passionate about food and running their own business. We want Flatbread Grill® owners to have the same values as us— honesty, ambition, and hard work. They should see that we built something special with passion, love, and dedication,” says Gonca. On-site training is a 40-hour, five-week program led by one of the sisters. “We have perfected this system over the course of 10 years,” says Gonca. “We believe in excellence and never take shortcuts.”
March 2018 17
Beauty THE BUSINESS OF
F
by Lisa Welko, Certified Franchise Executive
rom chic cuts to on-the-go blowouts to brow shaping and figure-flattering outfits, women seek out beauty in a myriad of ways. Of course, beauty is not just about looking good, it’s about feeling good, too. Studies show that feeling attractive is tied to positive self-esteem, and people who take the time to treat themselves to a massage every now and then, have less stress, anxiety, pain, and muscle tension. (Plus, it just feels good!) Now more than ever, the beauty and wellness industry is growing, and with it, so are the business opportunities. The industry has come a long way since one-size-fits-all spas. Now there are niche beauty businesses, and many are growing. According to Franchisedirect.com, beauty-supply stores, tanning and waxing services, salons, and massage services are on the rise, and Franchisehelp.com notes that the beauty industry is resistant to economic downturns. As it turns out, people always spend on hair cuts, nails, and so on, even if they don’t spend as much. With so many opportunities out there, which one is best for you? On the following pages, we give an overview of the industy’s growing beauty options.
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March 2018 19
Beauty THE BUSINESS OF
Trending Beauty Franchises
»
Lash Extensions Mascara is so yesterday. Now women who want lush, thick lashes are opting for eyelash extensions. They offer dramatic eyes without a drop of makeup. Lash-extension salons, like Amazing Lash Studio®, apply semipermanent lashes that last for a few weeks and then require frequent replacements or touch-ups (read: repeat business—lots of it!). Lash studios are becoming so popular that Entrepreneur.com notes the surge and gives them a shout-out on their “Top 10 Franchise Categories for 2018.”
»
Waxing
Let’s face it: Hair in the wrong places just isn’t sexy. And that’s why so many women— and men—are paying to have it removed. According to IBISWorld, the personal waxing and salon industry grew 7.6 percent annually between 2010 and 2015. Salons like Waxing the City® offer hair-removal services for almost every part of the body—eyebrows, toes, chest, legs, bikini lines, and so on. Package pricing makes buying in bulk less expensive for customers and guarantees repeat business. After all, hair always grows back.
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Massage »
Whether you play sports, sit hunched over a computer all day, or you just need a little pampering, a good massage fits the bill. And you don’t have to go to a high-priced spa to reap the benefits. Massage franchises, like Elements Massage®, specialize in massage and offer membership programs to lure repeat customers and keep the prices down. The massage franchise industry is lucrative—it has seen the highest annual growth rate (7.1 percent) over the last five years, according to Franchisedirect.com. Massage Envy®, another popular franchise, is number 46 on Entrepreneur’s list of 500 Fastest-Growing Franchises for 2017.
»
Specialty Haircuts There are no more excuses for bad hair days. Franchises specializing in hair-cutting services cater to everyone. This is a $44 billion-a-year industry. Kids can have a blast playing video games or watching cartoons at shops like Sharkey’s Cuts for Kids®. Need a no-nonsense cut, but didn’t make an appointment? Head to Great Clips®. Want your husband to get a cut, but he doesn’t want to miss the game? Check out Sports Clips® (shown left). For good, old-fashioned hair cuts, V’s Barbershop® offers hot lather and straightedge razor shaves in a traditional setting.
March 2018 21
Beauty THE BUSINESS OF
Trending Beauty Franchises
»
Blowouts Professional blowouts need not come with professional haircuts. And that’s the whole point of the blowout bar. These sleek salons specialize in expert hair-washing and styling, but no cuts or color. They work fast, accept drop-ins, and often, they’re less expensive than a blowout at a full-service salon. Executive women who have big meetings or presentations often stop in to upgrade their looks before game time. Same goes for women who have worked all day at the office and are heading out on the town. And of course, a great blowout is a perfect pick-me-up for a stay-at-home mom. So it’s no wonder that brands like Blo® Blow Dry Bar and Cherry Blow Dry Bar® (right), are gaining steam.
Listen to Lisa • Put emotions to the side. You want to make informed decisions, so just because you love long eye lashes doesn’t mean that’s necessarily the right industry for you. • Think of your transferable skills. What specialties do you bring from your former career that can help you launch a beauty brand? • Research the market. Know what services are available—and what aren’t—in your market. Consider which brands have seen success in similar markets, and see what you can learn from them. Lisa Welko helps aspiring business owners determine which specific franchise opportunities align with their strengths, goals, and values. For more information, visit integrityfranchisegroup.com.
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EDUCATION: April 2018 We cover the latest in Education Franchising and more. April 2018.
FranchiseDictionary THE ABC’S OF FRANCHISING
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March 2018 23
Bring on the mud wrap. I have nothing to feel guilty about.
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CONFESSIONS OF A GUILT-FREE SPA ENTHUSIAST
R
By Jill Abrahamsen aised in an Italian-Catholic home, I am no stranger to guilt. That
gnawing feeling of “I shouldn’t” or “I shouldn’t have,” comes with every slight indulgence. It’s ingrained in my being and travels with me wherever I go. These days, I also suffer from working-mother guilt. Every day, I’m pulled between the needs of three very different kids and also, my professional deadlines. So, there’s an endless stream of material to feel guilty about all the time. My mind constantly fills with thoughts like, “I should really be visiting my elderly aunt, but I’m on deadline.” or “The kids need dinner, but I have five more emails to send.” And on and on and on. Needless to say, when it comes to pampering myself at a spa or salon, I have to choose between living with guilt or tossing my needs aside. And as I’ve learned over the years: Living with guilt is a much better option. A small investment of time and money works wonders for my mental health and well-being. With a little “me-time” to relax, I am a better mother. I’m a more patient wife. And, believe it or not, I’m a more productive worker. It took some effort to learn that it’s not only OK to treat myself, but it’s imperative that I do. Like me, more and more people are realizing the importance of wellness—and that it often requires detouring from your usual routine and setting time aside for a trip to an indulgent oasis. Need proof? The wellness market is booming—and the franchise industry is benefiting, as a result. According to Franchise Direct, franchised
hair salons bring in $44 billion annually, and that number is expected to grow. With $16 billion in annual revenue, massage services have grown 7.1 percent over the last five years, and personal waxing and nail salons have grown 6.7 percent with $11 billion in annual revenue. Beauty franchisors are taking advantage of the demand and evolving beyond traditional one-spa-fits-all models. Now you can find inventive niche brands offering quick service, repeat business, and specialized treatments—say, eyelash extensions, waxing services, massage, and so on. For many customers, these niche joints reduce the time investment, the cost, and yes, even the guilt. For more decadent treats, like massage and facial combos, there are full-service spas and massage centers, like Massage Envy®, home to a menu of popular spa services. Stop in with a kink in your shoulder or lower back pain, and an expert can work magic on the spot. With so many quick, affordable, feelgood opportunities for franchisees and customers, everybody wins. So what is there to feel guilty about?
March 2018 25
COVER STORY
Beauty niche
franchises
Pampering isn’t reserved for special occasions anymore thanks to these accessible brands. By Jill Abrahamsen
Y
ou don’t have to spend the day at a full-service spa to get a dose of pampering. Thanks to some innovative thinkers and their specialty beauty franchises, you can add a little luxury to any day— without breaking the bank. Services like massage, waxing, blowouts, and lash extensions are available in shops that hone in on just a handful of beauty offerings. These shops are affordable and accessible— you’ll find them in big cities, small towns, as well as suburban malls and shopping centers. The industry’s new direction has a lot to offer potential franchise investors. Instead of being a jack-of-all-trades, you can invest in a business with a single specialty service. The benefits? For one, lower overhead. Specializing also makes for easier hiring and training, and many beauty-service shops offer membership packages—a built-in model for repeat business. But don’t take our word for it. Here, industry leaders talk about the advantages of niche brands and what business ownership looks like for potential franchisees. 26
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Vanessa Melman Yakobson
BLO® Blow Dry Bar
DON’T BE FOOLED BY HER MODEL GOOD LOOKS, Blo® Blow Dry Bar’s CEO and Partner, Vanessa Melman Yakobson is a shrewd businesswoman. Although not the original blowout bar founder, Yakobson knows a great opportunity when she sees it. “I wasn’t clever enough to start Blo®, but I was clever enough to acquire it,” she says. Yakobson spent 11 years in marketing in the non-profit sector prior to joining the head office team. “As a busy businesswoman, mother, and wife, I certainly appreciate the value of the blow-dry service.” In 2001, Yakobson and husband Ari, along with business partner, Paul Spindler, discovered Blo®, which had been founded in Vancouver, Canada, two years before. Blo® was North America’s original blow-dry bar. “When we first learned of it, there were three locations. We acquired it, turned it into a franchise system, and began to expand,” she says. Celebrating the sale of the 100th location, Blo® has seen strong year-over-year growth as this fast-growing beauty category attracts customers with convenient, affordable blowouts. No cuts, no color: Just wash, blow, go. Guests choose from signature styles featured in the Blo® “Hair Menu,” from smooth and straight to runway-inspired curls. “You don’t need to be an experienced business person to be a Blo® owner, and you certainly don’t have to come from the hair industry. We look for people who are excited by this innovative business concept. We want partners who love to deliver a service that makes clients happy, who are comfortable representing the business for marketing purposes, and who find it rewarding to manage a team,” she says.
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COVER STORY
Summer Vasilas
WAXING THE CITY®
AS A YOUNG ESTHETICIAN, WORKING AT A DAY SPA IN DENVER, COLORADO, Summer Vasilas developed a passion for waxing. She would scour beauty magazines reading about the high-end techniques performed in Beverly Hills salons. Duplicating those methods and collaborating with colleagues, Vasilas quickly refined her skills and developed an expertise. Hoping to take it to the next level, she pitched the idea of opening a waxing-only shop to her then-boss. “She thought I was crazy and told me it would never work,” Vasilas says. Fortunately, she was able to convince her mom, Marilyn Hatrshorn, that opening a waxingonly shop would be a lucrative career. Hatrshorn backed her idea financially and helped her manage the business. They enlisted the help of fellow esthetician Alex Arlotta and healthcare executive Robin Schoh, and in 2003, Waxing the City® was born. As Vasilas predicted, the shop was an instant success and soon expanded to three locations. The four women knew they had something special and started to look at franchising. In 2013, they created a partnership with the founders of Anytime Fitness® and took their business to the next level. “We knew our business and they knew franchising. It was perfect,” Vasilas says. The brand now has 87 locations with 150 more in development. The secret to their success? “Passion for what we do. Waxing is not just a business for us, it’s a way of life. We look to parter with people who share the same values. We use quality products and focus on making people feel good and giving them confidence. Customer service is number one at Waxing the City®. We educate our clients and focus on building relationships,” says Vasilas. Vasilas and Arlotta now run franchisee training and get to do what they love—wax and share their knowledge of waxing. “We want to be Waxing the City® co-founders an employer of choice and we do that through education.” There are no from left to right: Summer Vasilas, regrets for Vasilas. “This business was a little dream and I am in awe of Robin Schoh, Alex Arlotta, and where we are today.” Marilyn Hartshorn. 28
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Alia Alston
ICEBOX CRYOTHERAPY® THE SAYING, “OUT OF EVERY BAD, COMES A GOOD” DEFINITELY APPLIES to Alia Alston, founder and owner of Icebox Cryotherapy® Studios. At age 18, she was hit by a drunk driver and ruptured several discs. Alston spent years in physical therapy, but never fully recovered. As she got older, she lost feeling on one side of her body. Desperate to feel better, Alston researched cryotherapy, a treatment that uses cold temperatures to promote health, and learned of its healing powers. Through the help of her father, she was able to locate a cryotherapy unit through a Polish manufacturer. Feeling incredible after the first session, she was sold on its merits. She started formulating a business model on the car ride home. Originally developed in Japan in 1978, cryotherapy has been used to help reduce pain and inflammation, muscle soreness, and increase blood circulation. How does it work? The technology lowers the skin surface temperature to 30 degrees and keeps it there for two to three minutes. The skin reacts to the cold and sends messages to the brain that act as stimulants to the regulatory functions of the body. Not quite sure who her clientele was going to be, Alston opened her first studio in 2012. She had clients who were athletes, others who were pain sufferers, but a third group of people began coming for the beauty and wellness benefits—better sleep, beautiful skin (it boosts collagen), and a reduction in skin problems including acne, psoriasis, and eczema. In an effort to market the beauty benefits, Alston moved her location to affluent Buckhead, Georgia. Suddenly, business started booming. Now with three locations, Alston is looking for franchise partners who are passionate about helping people and have a love for health and wellness. Major perk to owning an Icebox Cryotherapy®? You get to use the system whenever you want. “I go in several times a week,” says Alston, “I’ve never felt better.”
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COVER STORY
Guy Coffey
FRENCHIES® modern nail care GUY AND STEPHANIE COFFEE ARE ON A MISSION TO CHANGE THE NAIL-CARE industry. With reports of infections and exploitation coming from nail salons across the country, the Coffees saw a business opportunity—and a chance to help people. Frenchies® motto is “clean, approachable, and fun.” The clean part is taken very seriously. “Sterilization is performed in a medical-grade pressure chamber, which utilizes steam to kill all contaminants. We use it in our three-step disinfection process on each and every tool that is used at Frenchies®. We go above and beyond industry standards and exceed regulations to ensure each guest is safe and comfortable,” says Guy. At Frenchies®, you won’t find razors or reusable foot files, which are illegal but still used at some salons. The fun and approachable part of their motto is an added bonus. “We strive to create a social and fun atmosphere. Employees are trained to focus on customer service and to create relationships with customers. The focus on the guest experience begins with communication,” Guy adds. The Coffees opened their first salon in 2014 and it was an immediate success. Before deciding to franchise, they opened two more units in 2016 to see if the model would work. It did. They unveiled the brand at broker shows last summer and sold 32 units in the first three months. As Frenchies® expands, the Coffees are hoping to create major change by educating others in the industry. “The concept resonates with people. Instead of going to any salon and hoping for the best, customers know what they are getting with Frenchies.®”
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Leo Rivera
BISHOPS® cuts/color GOING BALD AT AGE 28 AND REFUSING TO PAY HIGH-END SALON PRICES prompted founder Leo Rivera to start Bishops® Cuts/Color. The edgy brand is a “hybrid of the quality and education of high-end salons and barbershops with the convenience and affordability of national chains. Then sprinkle in some art, culture, branding, and community, and that’s us,” Rivera says. “A good haircut will always be in demand, but the modern consumer is ready for a new, more contemporary haircare experience. We deliver that. We are a disruptor in the industry. We are a marketing machine. I believe our systems, culture, and community really separate us from the rest,” Rivera adds. Rivera opened his first store in June, 2001 in urban Portland, Oregon as owner/operator, then started to develop in suburban markets of Portland in 2008. The brand entered Seattle, Washington in 2013. With that success, Bishops® began franchising nationally in 2016. There are currently 237 shops sold with 40 open, and one to two stores opening each week. To be successful at this business, franchisees “should follow the plan we have created and stick to the brand,” Rivera says. “We want people who believe in our ethos and vision. Somebody who doesn’t want to sacrifice professionalism for fun—have both. Somebody who wants to be semi-absentee. And, somebody who wants to be a pillar in his community and create a great work culture.”
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COVER STORY
On the Rise Chrystal Rockwell
These up-and-comers are offering unique services and have a huge following.
FLIRTY GIRL® lash studio OFFERING LASH EXTENSIONS AND MICROBLADING services in a fun, pampering environment, Flirty Girl® Lash Studio has been a hit with customers since then-25-year-old Chrystal Rockwell opened the first Texas location in 2012. With a menu of lash styles with fun names like “Shy Girl,” “Queen Bee,” and “3D volume,” clients can select a look and enjoy smudge-free full lashes for weeks— no mascara required. To keep up the look, customers need to come in for touch-ups every two to three weeks. And they do. Her loyal fan base has led to continued growth for the brand. By 2015, Rockwell opened a second location and started franchising in 2017. “I want to expand at a pace where everyone is successful, ” she says.
Daria Afanaseva
SUGARING NYC organic hair removal SUGARING IS ALL ABOUT ORGANIC. THIS HAIR-REMOVAL TECHNIQUE uses a paste that is so pure, it’s edible. Made from only three ingredients: sugar, water, and lemon juice, Sugaring “is gentle for the skin and lasts longer than regular waxing,” says Daria Afanaseva, owner at Sugaring USA. After living in Europe and experiencing Sugaring first hand, Afanaseva brought the concept to New York City in 2014, starting the business from a treatment room she rented in a salon. “In a short time, I got so busy that my husband Dmytro Nartov quit his job to help grow the business. Within a year, we opened our first salon in the heart of Manhattan. Now we operate six Sugaring NYC locations in three different states. Last December we took Sugaring NYC to the next level and started franchising,” she adds. “We look for franchise partners who are passionate about skin care, natural products, and have a desire to help people feel better about themselves.”
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Niche and more
Offering a full arsenal of niche services, these salons strive to make their customers feel better about themselves.
Chris Hardy
BODYBRITE® OFFERING HIGH-END SERVICES AT AFFORDABLE prices, BodyBrite’s mission is to make people feel better about themselves without the expense or risk of invasive procedures. BodyBrite has seen rapid growth since franchising in 2012 with 225 locations that can be found on all seven continents. From skin rejuvenation to microdermabrasion and body-contouring services, customers get results. “Our RF technology produces a soothing and therapeutic heat matrix over the skin. Skin tightening, wrinkle reduction, and cellulite reduction occur because the radio frequency causes a thermal reaction in the tissue, which stimulates the body’s natural healing response. This restoring response causes the skin to contract, achieving tighter skin, softening of wrinkles and reduced cellulite,” says Chris Hardy, CEO at BodyBrite USA. “We are looking for franchise partners who gel with the business, which means putting an importance on making people feel better about themselves and creating a loyal client base.”
John Dunatov
spa810®
WITH A MISSION TO CREATE AN ENVIRONMENT where health, wellness, and beauty come together, spa810® delivers non-invasive treatments for everyday concerns such as stress, physical pain, dark spots, uneven skin tone, acne, rosacea, fine lines, and stubborn fat. “We are fundamentally different because of the people that are involved at every level. We work tirelessly to build relationships with area representatives and franchisees, to develop the culture where every customer is treated like a guest with uncompromising quality,” says John Dunatov, CEO and founder. “Our ideal franchise partner will show passion for the industry, respect for our model, and be determined to help us build our brand.”
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New Tricks of the Trade Why the Health and Beauty Industry is Taking Off.
N
by Chris Conner
ot long ago, the health and beauty industry was made up of
mom-and-pop shops. A master of a beauty trade, say a hairstylist, would hang a sign on a door and open for business. These shop owners were so busy executing the beauty services and managing the financials that opening a second or third location was simply out of the question. The shop may have promised—or even delivered— the very best haircut, but the business was run on the owner’s whims and its survival depended almost entirely on a single person’s talent. Fortunately for business owners and customers, too, things have changed in the health and beauty market. Franchise systems have given salons, massage services, hair-removal services, nail salons, eyelash-extension studios, among other beauty businesses, more systems and infrastructure, which has created more business. In fact, over the last decade, the health and beauty market has seen tremendous growth. What changed? In the early 2000s, the massage industry turned over a new leaf and launched brands like Massage Envy,® Hand and Stone Massage,® and Massage Heights,® all massage franchise systems with hundreds of locations. These businesses provide consistent services, run on standardized operating procedures, and cater to a mass market instead of only an affluent one. Next came the waxing market with the
development of European Wax Center,® Lunchbox,® and Waxing the City,® which standardized the waxing market and successfully developed hundred-plus chains of branded and consistent retail waxing centers. Then came nails, then eyebrows, and now lashes (Lash Lounge) and Medispas (Ultimate Image Cosmetic Center). Suddenly reminiscent of industry segments like food and retail, the beauty market can be franchised as easily as a hamburger joint. THE TRANSITION Some call it the “Mcdonaldization” of an industry, but the “art” of a beauty service morphed into a “process.” Instead of emphasizing a premium quality service, business owners emphasized a solid service that’s geared toward a large number of customers and can be performed by a large number of employees. No longer does a business focus on a Rolls-Royce massage, but more on providing a solid, professional, and consistent service—and charging a reasonable price for it.
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New Tricks of the Trade By making a massage, for example, accessible to everyone, then everyone has the potential to become a customer. With one simple step, you’ve widened your market. According to the American Massage Therapy Association, the dollar volume of the massage industry doubled between 2005 and 2015 and became a $12 billion revenue business. This increase, of course, was not driven by a large increase in sore shoulders. It stems from the launch of approachable brands, reasonable prices, and a network of franchised massage businesses that allowed new customers to become loyal
The beauty market can be franchised as easily as a hamburger joint. customers. Other beauty segments followed suit. Eyebrow waxing, hairstyling, and lash-extension services took the emphasis off premium luxury quality and focused on providing consistent service that would draw frequent visits from the everyday person. The beauty market also has a business model that appeals to new investors and savvy business minds. Most beauty businesses have a very low cost of goods sold, which creates a stronger bottom line and higher profitability. Take the Italian weight-loss franchise, Figurella,® a 374-unit franchise system that offers proprietary weight-loss programs using special equipment and processes. Once the location opens, there are virtually no expenses outside of an instructor, who oversees clients using the equipment to shape their bodies and lose weight. Hair-removal studios, massage havens, and eyelash-extension studios function similarly: They have little to no cost of 36
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goods sold, which makes for a strong return on investment. This leads many entrepreneurs and business people with no background in health or beauty to invest in beauty franchises, thus pushing the market segment to grow even faster. So whether you are in sandwiches, fitness, or health and beauty, systems and infrastructure make a difference in a business’s growth potential. There are a wide selection of beauty-service brands on the market, and the low costs and potential high profitability of this market segment certainly makes beauty franchises worth a look. Christopher Conner has spent the last decade in the franchise industry working with hundreds of systems in management, sales, and development. Conner leads the Franchise Marketing System’s team in business consulting and franchise development projects. For more information, please contact Christopher Conner at Chris.Conner@FMSFranchise.com.
FRANCHISE OPPORTUNITIES AVAILABLE
Weekly Conversations with Franchising’s Top Marketing Pros and CEOs Download new episodes each Wednesday at socialgeekradio.com or iTunes. This March: We cover franchise trends with industry leaders Liane Caruso, Jim Buckley, Jayson Pearl, and Franchise Dictionary Magazine’s, Jill Abrahamsen.
Where Business and Social Geekery Converge
SOCIAL GEEK RADIO
March 2018 37
in·ter·view
\�in-tər- vyü \ � noun
1. A Q&A session with a franchise expert 2. Susan Scotts gives insight on career change
Susan Scotts is an award-winning
alternative career coach with almost three decades of experience in the franchising industry. She works nationwide with individuals who want to take charge of their futures and become self-sufficient.
QA
What are some common catalysts for career change?
Q
There are many reasons why people explore alternative careers instead of the “golden handcuffs,” currently offered by Corporate America. By working for an employer, people have limited earning potential and limited flexibility. It’s hard to have a healthy work/life balance when you’re working on somebody else’s schedule. Today, many people struggle with caring for small children or elderly parents. For them, professions offering work/life balance take a lot of stress off the table. People over the age of 50 are concerned about how long they will be employable. If they are laid-off, often conventional career options are limited.
Who is your typical client?
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A
My typical client is not typical at all! I work with a diverse group of individuals with various skill sets and talents, and from a wide variety of backgrounds. Some people have two Master’s degrees, while others are skilled through years of on-the-job experience. Some folks are outgoing, others are more reserved. Many individuals have sales experience, while others are operations focused. I work with professional women and men, and also military veterans who are transitioning out of the military and are unsure of what their next steps should be. There are so many possibilities in franchising today that there is something for everyone.
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Before you
Jump In
to a franchise purchase
look for us
THE RESOURCE FOR FRANCHISEES
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March 2018 39
in·ter·view
QA
How do you help a client narrow his/her choices?
QA
I help clients see potential options they didn’t know existed, and together we strategize how to make them realities. We discuss personal and professional goals, along with transferable skills from previous professions. There is no downside to becoming educated on career possibilities.
What’s exciting about franchising today? Many people think of franchising as only food franchises, say, McDonald’s or Subway, but the food sector represents only a small part of the franchise market. Current data estimates that there are approximately 3,800 franchised brands in the U.S. alone, with more industries than ever before. It’s exciting to see so many options that suit various personal goals, interests, and transferable skills. Next, there is more focus on training and support than ever before. This gives potential franchisees more options, because it’s not necessary to have specific industry or business knowledge—you can be trained in something totally new. Of course, the most exciting part of franchising is the freedom and flexibility that often comes with it. These days, there are more home-based and part-time options, many even allow you to keep your full-time job and income. With new tax laws benefiting small business owners, coupled with the $30 billion in available funding from the Small Business Association, there has never been a better time to explore small-business ownership. Franchising provides a safety net, too. You are in business for yourself, but not by yourself. There are proven systems, tools, training, and marketing support, so you have a lot of advantages right from the get-go.
Q
Any great success stories?
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A
I began working with a gentleman who had been laid-off and was out of work for a year-and-a-half. During our conversations, he shared that not only did he not have a lot of liquidity to invest, but he also wanted a divorce but couldn’t afford to do it. He was feeling stuck and unfulfilled personally and professionally. We were able to work together to find him a business and obtain funding. This gave him the opportunity to start fresh and have hope for his future. He sent me a note that I still keep on my desk today. “Thank you for changing my life!”
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FRANCHISE OPPORTUNITIES AVAILABLE
WE’RE HEADING TO CHICAGO THE FRANCHISE SHOW March 24-25, 2018 franchiseshowinfo.com
Stop by our booth to say hello.
FranchiseDictionary THE ABC’S OF FRANCHISING
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4
REASONS WHY FRANCHISE BROKERS
SURVIVE & THRIVE I
By Don Daszkowski
t’s critical to align with a franchise broker who has a good reputation in the industry. The best brokers act as true consultants. They are committed to helping potential franchise buyers succeed, and they enjoy the personal interaction of coaching and educating a franchise prospect. They generate and nurture solid leads, and they’re committed to finding a good match between franchisor and franchisee. A significant percentage of franchise sales are generated by franchise brokers and consultants. According to the “2018 Annual Franchise Development Report,” a highly regarded survey published by Franchise Update, 14 percent of franchise sales came from franchise brokers in 2017. Since 2010, brokered franchise deals have remained steady, accounting for anywhere between 14 and 17 percent of franchise sales. These numbers are likely to remain stable in the foreseeable future, and that means it’s in the best interest of many—if not most—franchisors to consider developing strong relationships with franchise brokers. Franchisors who take advantage of franchise-broker services typically report much higher numbers. For example, many of IFPG’s franchisor members say more than 50 percent of their deals originate from brokers. Here are some important ways brokers help the franchise industry as a whole.
Don Daszkowski is the founder of the International Franchise Professionals Group (IFPG). IFPG is a membership-based organization that consists of franchise consultants/brokers, franchisors, and other franchise professionals, who help potential buyers with the process of buying a franchise.
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1 They uncover “hidden” buyers.
Franchise brokers shine when it comes finding “hidden” qualified buyers. A motivated franchise buyer often heads to the Web to research franchise brands and might even approach a franchisor with important questions. But some potential franchise buyers just aren’t that far along. They might have a vague notion that business ownership is a good fit, but need coaching and support from a broker or consultant. By the time the broker brings the candidate to the franchisor, he has decided on franchise ownership and is primed to move forward.
2 They pre-screen franchise buyers.
A great franchise broker creates trust and gets to know potential buyers on many levels. Brokers learn a buyer’s preferences, character traits, and specific skill sets. A broker can help a buyer determine which franchises would be an organic fit. Many franchise prospects that have been through a pre-screening process with a broker end up successful. Franchisees who fail are typically those who were mismatched out of the gate. The best franchise brokers are experts at making sure the franchisor and franchisee are a good match. Along with skill sets, a broker also learns about a buyer’s financial standing and only moves forward with financially qualified candidates.
3 They excel at selling service franchises. Franchise brokers are particularly effective when it comes to selling affordable service franchises. Brokers help move mobile, home-based, and office-based franchises as opposed to concepts with super-high investment levels like restaurant and retail. If you’re a franchisor with an affordable service business, using a franchise broker is a smart move.
4 They can help emerging franchises.
Brokers are often critical for emerging companies that are in their first few years of franchising. By using brokers and the pre-qualified leads they provide, some emerging franchises have accomplished impressive growth during the start-up years. Using a broker, a franchisor would not necessarily have to hire a sales person to expand the brand. A broker can be an inexpensive way to penetrate different markets at the same time. For example, IFPG has more than 200 brokers all over the U.S. This creates opportunities to open franchises in locations that are often too expensive to market to for emerging brands.
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1
IFA2018 COVERED A LOT OF GROUND
T
By Jill Abrahamsen
he International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. Every year IFA holds an annual meeting of the minds. Last month, almost 4,000 franchising professionals met in Phoenix, Arizona, to participate in the annual convention, this year dubbed IFA2018. The event had something for everyone. From round-table discussions, to award ceremonies, contests, workshops, informational sessions, and an extensive exhibit hall, IFA2018 did not disappoint. The five-day event is a great opportunity to network with others in franchising. “This conference is unique. It’s the only place where competitors are willing to meet and share their best practices. But that’s franchising. It’s not an industry. It’s a methodology,” says Peter Holt, CEO of The Joint Chiropractic® and long-time member of IFA. “No matter the type of business, so many issues franchisers face are the same.” CEOs of top companies, brand-new franchisees, consultants, brokers, suppliers, and franchise attorneys walked the halls at the Phoenix Convention Center to learn, share, and network. One of the many highlights was the opening session where two great industry pioneers were honored. Edible Arrangements® Founder & CEO Tariq Farid was awarded a coveted spot in the IFA Hall of Fame. His advice to young entrepreneurs, “If you’re willing to put in the effort, you can succeed—that’s the power of franchising.” Huntington Learning Center® CEO and co-founder Eileen Huntington received the distinction of IFA’s Entrepreneur of the Year. Her secret to long-lasting success? “Grit, determination, and the ability to move forward after making mistakes,” she said. Keynote speaker Rohan Oza, aka “Hollywood’s Brandfather,” shared how he identifies trends and leverages those insights into building iconic brands. The 2018 NextGen in Franchising Competition was another highlight. Nearly 900
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2
3
4 applicants from around the world vied for 20 spots in the NextGen in Franchising Summit. “Shark Tank” star Daymond John led a panel of judges for the final round of the competition, when each participant pitched a business concept to John and a panel of experts. This year, Landon and Kat Eckles, founders of Clean Juice® Franchising, LLC, took home first place, which included a $10,000 cash prize. It’s an impressive event. There is even an app to help you plan out your day, connect with other attendees, and give you detailed information on speakers and exhibitor locations. I’m already looking forward to next year’s event in Las Vegas, Nevada (February 24-27, 2019). A few words of advice to first-time attendees: Wear comfortable shoes. But more than that, be ready to share and learn.
5 1. More than 3,000 franchise professionals met in Phoenix, AZ, in February to network, learn, and share best practices. 2. Edible Arrangements® Founder & CEO Tariq Farid is awarded a coveted spot in the IFA Hall of Fame. 3. Finalists from the 2018 NextGen Global Competition. 4. Huntington Learning Center® CEO and co-founder Eileen Huntington is named IFA’s Entrepreneur of the Year. 5. Round-table discussions allowed for in-depth observations about hot topics in franchising.
March 2018 45
DEBUNKING THE
5
MOST COMMON
F
franchising MYTHS by Eric Schechterman, Certified Franchise Executive
ranchising has seen tremendous growth over the last 10 years.
But with increased popularity comes misconceptions and myths. Potential franchisees need to dig deep and find out the facts before jumping into—or overlooking—a good opportunity. Here, we look at the most common myths and reveal the facts.
Franchises are only made up of fast food and retail.
There are more than 3,100 different franchise concepts on the market today. Opportunities can be found in many different industries including education, pet care, home services, fitness, and beauty. Expensive build-outs and leases are not the only options for investors. With home-based franchises, overhead is low and margins are high. Mobile franchises allow owners to go to their customers. There are some brands that focus on a specific demographics, such as millennials, seniors, or children. Even when you take food and retail out of the equation, there are still endless options to fit specific goals, lifestyle, ideals, and budget.
Franchises are only for big investors.
When business seekers were polled about the cost of franchising, their answers were often wildly off the mark. According to a study conducted by FranData, one-third of all franchise opportunities cost less than $100,000—and only 25 to 30 percent needs to be liquid capital. The rest can be financed. Many business seekers are unaware of the full menu of financing options available.
A quality product is all that’s needed for franchise success.
While a quality product is essential, the true measure of success can be found in the depth of the franchise’s operating systems and programs. An ideal franchising opportunity offers superior marketing, sales, operations, and accounting systems.
Successful businesses only emerge in new industries with little or no competition.
Franchise brands are not built to control the market. They just need a piece of it. That’s why some of the top brands put locations in markets where there is competition. It’s not uncommon to see several haircut franchises or massage brands in the same area. With franchising, it’s the systems that create success. Effective marketing and operational systems drive profitability, not the lack of competition.
Profitability requires a huge investment.
It takes money to make money, right? Isn’t this what you’ve always heard? Well, with franchising, there is no automatic correlation between the cost of a particular franchise and return on investment. In fact, many of the service-sector businesses require far less initial investment, but routinely yield higher returns due to a lack of overhead. The real key is finding a franchise concept that applies to your skill level, lifestyle, and interests. As part of FranNet of Boston, Eric Schechterman works closely with clients to understand their goals, values, lifestyles, and interests. He coaches them through the franchising process and helps determine if franchising is a good fit.
March 2018 47
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®
Waxing the City®
Hand & Stone® The health and personalcare market is exploding. With a simple but unique concept, Hand & Stone® has the business model that could help you profit from this fast-growing industry. The concept is simple. The company offers affordably priced, conveniently located, top-quality therapeutic massage, facials, and hair-removal services. The membership program offers discounted services for repeat customers. For more information, call 888-627-7243.
Looking for a 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 while incorporating your goals. Snapology® is a partner for STEAM programs, offering fun, hands-on learning classes in schools, community centers, and homes. For more information, visit snapology.com.
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Waxing is a fast-growing segment of the booming salon industry. The concept continues to gain in popularity, which makes this business suitable for a variety of markets and communities. Waxing the City® offers a lowcost franchise opportunity in the salon industry and across other industries. For more information, visit waxingthecity.com, or call 866-956-4612.
®
®
Icebox Cryotherapy®
The Patch Boys®
Abrakadoodle® Innovation and imagination are rated as top skills needed by students to compete in a global economy, and creativity is one of the most important skills needed for success in school and the workplace. Abrakadoodle® is all about creativity for kids. Abrakadoodle® brings art to kids in schools and communities. The program provides well-trained teachers, who help inspire kids to immerse in learning and creating art—sometimes getting messy but always having a blast. This low-cost, mobile, home-based business offers multiple revenue streams, including classes, camps, events, parties, and adult programs. For more information, visit abrakadoodle.com
Icebox Cryotherapy® is a leading provider of non-invasive cold therapy used to treat sore muscles, aid in pain management, and promote overall health and wellness. Icebox provides safe and natural therapeutic programs, boosts athletic performance, reduces inflammation, and increases metabolism. It’s also used to fight aging and foster skin renewal. Used worldwide since the 1970s to enhance recovery on everyone from joint-disease sufferers to elite athletes with muscle pain, whole-body cryotherapy (WBC) has proven to be a powerful therapy for inflammatory disorders and injuries. For more information, visit iceboxtherapy.com.
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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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1. Words of wisdom for any new business 2. Why Camp Bow Wow® leads the pet-industry pack
Becoming Top Dog
A perfect paw print for franchising success 1. Disrupt the marketplace: Camp Bow Wow® founder Heidi Ganahl always treated her own dogs like children and was never satisfied with the boarding options available. She raised the industry standard by creating a boarding facility and doggie daycare similar to camp for children—a fun, social, and caring setting that is safe and clean. 2. Create a safe environment: Not every dog is a good fit for Camp Bow Wow®. Potential “campers” go through an interview process to test temperament. Dogs are placed in huge play areas with fellow campers of similar size and energy, and get to enjoy open play under the supervision of a counselor. 3. Know your audience: Many dog parents are nervous about boarding their furry friends. The folks at Camp Bow Wow® do everything to put their customers at ease. Pet owners can check in at anytime and watch their dogs from a web-cam. 4. Diversify with multiple revenue streams: Camp Bow Wow® is a one-stop shop for pet services. They offer boarding, daycare, training, grooming, and in-home pet care. 5. Set high standards: Camp Bow Wow® prides itself in having a clean, pleasantsmelling, safe facility. The company goes the extra mile with unexpected features: The staff plays calming music to lull pups to sleep at night and runs hospital-grade fresh air systems through the facilities. Maybe a dog’s life is not so bad after all.
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THANK YOU
TOUR
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DEDICATED TO OUR VETS
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