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THE ABC’S OF FRANCHISING

VETERAN SPECIAL

FASTSIGNS: Offering significant discounts for veterans

THE ABC’S OF FRANCHISING

Get a piece of this growing industry

Reasons why veterans succeed in franchising

Trade Shows: New dates from The Great American Franchise Expo

26 34

Empowering veterans through franchising

How these friends formed the perfect partnership

Cashing in on our pet obsession

BE YOUR OWN BOSS! The World’s First VR Enabled Franchise Tradeshow

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Unleash Your Inner Entrepreneur! The Great American Franchise Expo is the USA’s premier regional franchise expo series. Experience the power of virtual reality and tour the world’s top franchise brands from the expo floor. Educate yourself with the largest and most comprehensive series of seminars on franchising and business ownership. ______________________________________________________ • Choose from hundreds of concepts in dozens of industries. • Meet franchise law experts to guide you through the legal process. • Learn about financing options to fund your new business. • Interact with quality franchise company executives.

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2018 - 2019 EXPO SCHEDULE Coming To A City Near You

2018 Fall / Winter

2019 Winter / Spring

2019 Fall / Winter

BAY AREA

HOUSTON

JACKSONVILLE

Santa Clara Convention Center September 15-16, 2018

Stafford Center February 23-24, 2019

Osborn Convention Center September 7-8, 2019

PHOENIX

Mesa Convention Center October 6-7, 2018

DALLAS

Irving Convention Center March 9-10, 2019

WASHINGTON DC

DENVER

CHARLOTTE

TAMPA

Dulles Expo Center October 5-6, 2019

Denver Mart October 20-21, 2018

Charlotte Convention Center April 13-14, 2019

Tampa Convention Center October 26-27, 2019

RALEIGH

ATLANTA

MIAMI

Raleigh Convention Center November 10-11, 2018

Cobb Galleria May 18-19, 2019

Miami Airport Convention Center November 9-10, 2019

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November 2018 19

buzz•word CIAL VETERAN SPE

VETERAN SPECIAL

VETERA N

VETERAN FRANCHISEE

SWEET RETURNS FRANCHISOR

Former bomb squad leader supporting Army Special Forces, Luke Freshwater, knew that he wanted to be in control and build wealth for his future. With twins on the way and a 3-year old daughter, his wife Megan wanted a flexible work schedule. Luke’s father, John, was also available to help. The simplicity of the business sold them. Of course, once they tasted the delicious macaron cookies, the rest was history! Freshwater was thrilled with Le Macaron’s reduced franchise fee, and he was happy to leverage his own military training to run the business. “As a Veteran, work ethic is in our genes. This business allows me to leverage the skills I learned in the military while also providing a fun atmosphere and high-quality product. My entire family is able to be a part of the business, and I look forward to my three young daughters learning some great life lessons through this business.” Contact Susan Scotts at 561-859-9110 or e-mail SScotts@ESourceCoach. com. For more information, visit www.SScotts.EsourceCoach.com. 20

Your Opinion Matters When my friend and her husband were moving back to their home state, they invited family members to join in on house hunting. I couldn’t figure out why. Is everyone pitching in and buying the house? With each house, the couple and their family analyzed together. I kept wondering, why was everyone’s opinion so important? And then it dawned on me: My friend needed everyone to be OK with her decision. My friend isn’t alone in her thinking. Many people require the approval of others when it comes to making decisions— particularly big ones. But knowing what is right for you is what makes you, well, you. With this in mind, when you have to make a decision, how do you go about it? Do you seek out advice, or do you process internally? At then end of the day, you are the one who must live with your choices, so whose opinion matters most to you—yours or someone else’s?

Being a business owner means making decisions every day. You have to have the confidence to make educated decisions based on the information you have at the time. If you need others’ approval and opinions to move forward, will you be able to make a decision to run a business? As the holidays approach, family and friends gather and opinions start flowing. Someone who has done her due diligence, research, and validation can still fall victim to a business-minded uncle, who claims to know everything. Needing others to approve of major life decisions is not a good way to make business decisions. So ask yourself why you need outside advice. And when you get it, consider it along with your research—the pros and the cons of owning a particular business, the confidence you have in your own ability, the business model, and come to a decision that fits you.

Contact Telanda@TheFranchiseConsultingCompany.com.

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up·date

\�əp- dāt\ noun �

1. The latest headlines in the franchise industry 2. Quick news bites to inspire you

Pet Project

PETLAND DONATES $20,000 TO PROJECT ALIVE Petland stores in Southern Florida, along with parent company Petland, Inc., donated $20,000 to Project Alive (www.projectalive.org) to help fund clinical trials. The donation will benefit research for Hunter Syndrome (MPS II), a rare genetic disease which leads to progressive damage in boys. Some never develop speech, but some boys learn like typical children then begin losing skills they’ve learned at a young age. Eventually, they lose the ability to walk, talk, and eat. Most do not live to see their teen years. Gene therapy, a revolutionary new approach to treating genetic diseases, may provide the cure these boys desperately need. Researchers are in the final stages of developing the first gene therapy clinical trial for boys with Hunter Syndrome. Project Alive, a 501c3 organization, aims to fund the trials and get one step closer to a cure.

November 2018 23

up•date In brief

VETERAN SPECIAL

VETERA N

FRANCHISOR

MAKING THE GRADE

Paying it Forward Now through Veterans Day, November 11, Sport Clips locations around the country are running their annual “Help A Hero” campaign. Last year, Sport Clips raised $1.25 million for the Veterans of Foreign War through donations from clients, product partners, and community events at their nearly 1,800 stores in the U.S. To date, the company has awarded more than 1,100 scholarships. Along with the promotion, $1 from every haircut service will be donated to the program. From state universities to private institutions to trade schools to technical education, hundreds of veterans and service members have used the $5,000 per semester scholarship to work toward finishing their education and taking the next steps in their post-military careers. For more information, visit www.sportclips.com.

DREAM VACATIONS TO GIVE AWAY FREE BUSINESSES TO U.S. VETERANS In celebration of Veterans Day, Dream Vacations is awarding seven military heroes free travel franchises as part of its contest, “Operation Vetrepreneur: Become Your Own General.” Currently, more than 30 percent of franchise owners within Dream Vacations are military veterans, and in the past seven years, the travel agency franchise has awarded 37 free franchises—valued at more than $469,000—to deserving military veterans. “Military veterans are American heroes, and Operation Vetrepreneur is our unique way of giving back to them for all that they have given to us,” says Debbie Fiorino, senior vice president of Dream Vacations. “I am so proud of our company’s military efforts and how it has grown over the years. According to VetFran,

military veterans own approximately 14 percent of all franchises nationwide, and here at Dream Vacations our veteran ownership is more than double the national average.” The annual contest “Operation Vetrepreneur: Become Your Own General” was open to former members of any of the five branches of the U.S. military who are retired, off active duty and/or honorably discharged prior to the contest start date this past May. Candidates participated in a rigorous threepart application process, which included creating a business plan, video essay, and phone interviews. More than 1,500 people have applied for franchise ownership through Operation Vetrepreneur since 2012. For more information, visit www.dreamvacations.com.

ROBOTIC HD 3D CT SCANS AND FLUOROSCOPIES Be Part of the Veterinary Imaging Revolution with Your Own Mobile Pet Imaging Franchise • • • • •

Unique Opportunity Consistent Revenue Stream Hands-On Training Full Marketing Support Ongoing Phone and Email support Get in on the ground floor of this unique opportunity that is making quality pet care more affordable and accessibile. Mobile Pet Imaging offers the ultimate in convenience for pet owners and veterinarians. We bring our state-of-the-art mobile unit to veterinary clinics and hospitals, veterinary specialists, and zoos. *Certain states require business ownership only by licensed veterinarians.

www.mobilepetimaging.com

To learn more, contact 800-321-9054 or info@franchisefoundry.com

2018 - 2019 U.S. SCHEDULE

Meet face-to-face with the hottest business ownership candidates in each city.

FALL 2018

SPRING 2019

TAMPA, FL

BOSTON, MA

COLUMBUS, OH

Tampa Convention Center

World Trade Center

Ohio Expo Center

September 7 & 8

PHILADELPHIA, PA September 28 & 29 Pennsylvania Convention Center

January 11 & 12

NEW YORK / NEW JERSEY

VIRGINIA/ WASHINGTON D.C.

Meadowlands Exposition Center

Dulles Expo Center

February 16 & 17

DALLAS, TX

October 5 & 6

SAN DIEGO, CA

Dallas Market Center

March 2 & 3

LAS VEGAS, NV October 26 & 27

Orleans Hotel & Casino

April 6 & 7

CHICAGO, IL

April 27 & 28

Del Mar Fairgrounds

Donald E. Stephens Convention Center

ORLANDO, FL

HOUSTON, TX

Orange County Convention Center

NRG Center

March 16 & 17

ATLANTA, GA

March 30 & 31

May 18 & 19

November 9 & 10 Cobb Galleria

PRODUCED BY:

1.800.891.4859

16 years of high quality franchise sales events.

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MEMEBER OF:

fran·chi·see \ fran-chī-zē, -chə-\noun

1. An outstanding franchise owner 2. How this duo formed a perfect partnership

JAMAL JABBARI & SAMIR EL FASSI

The Waffle Experience Elk Grove, CA

By Jill Abrahamsen

efore Jamal Jabbari and Samir EL Fassi went into partnership as The Waffle Experience franchisees, they knew each other through the food business. As food-truck owners, the pair admired each other’s work ethic and business savvy. As they ran into each other at community events throughout the years, they shared best practices and developed a lasting friendship. Jamal, who still owns his food truck, “Hefty Gyros” with a partner, specialized in Middle Eastern cuisine. Samir’s food truck, “Frenchy’s Waffles,” was inspired by his childhood in France. Sharing a parking lot with the original The Waffle Experience location, the men watched the restaurant grow from infancy and admired how it gained a cult-like following in such a short time. “They were busy from day one. The concept is so unique. There’s nothing else like it out there. It’s creative food in a fun atmosphere. Everything is fresh. No freezer, no microwave,” says Samir. “When we discovered the owners were offering franchising opportunities, we jumped on it.”

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“When we discovered

the owners were offering franchise opportunities, we jumped on it.”

The pair formed a perfect partnership. “We really complement each other when it comes to our different strengths. Samir handles more front-of house roles like greeting customers and managing the wait staff, while I stick to the back-of-house responsibilities, overseeing the kitchen,” says Jamal. “We make sure our partnership is always transparent. We sit down and discuss any decision that has to be made.” In July, the pair opened in Elk Grove, California, and never looked back. “The hours are perfect. We are out by 4:30 and get to have dinner with our families,” says Samir. “When our doors opened in July, a ton of people came through. We had joined the local chamber of commerce and did some marketing before opening, but the real buzz came from the reputation of the original location. We couldn’t be happier,” says Samir. For more information, contact, thewaffleexperience.com

Samir El Fassi (left) and Jamal Jabbari are gleeful after their Elk Grove, CA, The Waffle Experience location was recognized in Sacramento News & Review’s “Best of Sacramento” as a first-place brunch restaurant.

November 2018 29

le·gal·ese /lēgə’lēz/noun

1. The formal and technical language of legal documents that is often hard to understand. 2. Need-to-know legal advice from Jason Power

Tips for Buying a Franchise Resale

urchasing an existing franchised business, instead of starting one from the ground up, can be a great way to walk into an existing income stream and avoid the high costs of build-outs and training. But purchasing an existing franchise requires a slightly different analysis than purchasing a new one, and there are specific points that need to be addressed. Here are a few key considerations: READ THE FRANCHISE DISCLOSURE DOCUMENT (FDD) AND FRANCHISE AGREEMENT. When you buy a franchise resale, you will be required to sign a franchise agreement. You will be as obligated to your franchise agreement, just as the previous owner was to his. Take the time to read and understand your rights, duties, and obligations as a franchisee, because you will be subject to these terms for the next 10 (or more) years. REVIEW THE ASSET PURCHASE AGREEMENT. When you and the seller agree on the terms of the sale, the seller’s attorney will draft an asset purchase agreement. This agreement—some30

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times simply called a buy-sell agreement—spells out the terms of the sale: when the purchase price is due, the closing date, what assets are included and excluded from the sale, and what liabilities you are assuming, like debts of the seller. Review your asset purchase agreement with an attorney to ensure you are properly protected. MAKE SURE THE FRANCHISOR APPROVES OF THE TRANSFER. Every franchise agreement gives the franchisor the authority to approve of a transfer and of you as the buyer. If the franchisor does not consent to the transfer—or to you as the new owner—then the entire transaction could be dead in the water. HAVE A VALUATION OF THE BUSINESS PERFORMED. When you purchase any business, you should know and understand the actual value of the business. Many times this is different than the asking price and can provide room for negotiations. Value can include a variety of things such as the business goodwill, the current inventory, and equipment, etc. The best way to determine the value of a business is to hire a company that focuses on business valuation services.

OBTAIN AND REVIEW FINANCIAL STATEMENTS. Purchasing a business that is not profitable is not a smart move. Request that the seller provide financial statements from the last three years (at least) and review them with your accountant to determine profitability and trends. You should also ask the franchisor to provide you with financial information about the seller’s business to make sure the information matches up. DETERMINE WHY THE EXISTING OWNER IS SELLING. People sell their franchises for many reasons. Maybe an owner is ready to retire, or maybe he’s dealing with personal issues that require him to step away from the business. Determine if the seller is selling for personal reasons or if he is jumping ship on a sinking business. Also, study the industry to make sure that it’s sustainable. TALK TO OTHER FRANCHISEES AND THE FRANCHISOR ABOUT THE SELLER. Learn about the seller, his reputation, and the business’s reputation in the system, too. If you are buying into a business with a bad reputation, you may have an uphill battle ahead of you. PAYING THE TRANSFER FEE. Most franchisors require a transfer fee to cover their costs in evaluating the transfer and the buyer. Either you or the seller must make sure this fee is paid. This transfer fee can be a flat rate or a percentage of the franchise fee. Before you finalize your purchase agreement, make sure you’ve accounted for the transfer fee. ANALYZE THE FRANCHISOR. Once you purchase the franchise, you will become a franchisee and subject to rules and responsibilities imposed by the franchisor. Just like if you were buying a new franchise, conduct your own investigation of the franchisor to determine whether she has systems and procedures in place to support the system as a whole. There are franchisors that do not

have the infrastructure, systems, procedures, or vendors in place to support the system, which hurts franchisees. WILL THE STAFF STAY? If the business you are purchasing has staff or a management team, determine early on if they will stay with the business or if they plan to leave with the seller. Also, if the franchise was run by the seller with little or no staff, as is often the case with a small home-based business, request that the seller agree to be a consultant for a set period of time to introduce you to customers, referral sources, and vendors. HAVE A FRANCHISE ATTORNEY REVIEW THE AGREEMENTS. Purchasing a franchise, even an existing one, involves various areas of law that many attorneys who are not familiar with franchise law may miss or deem absurd. Have a franchise attorney review all the franchise agreements and purchase agreements before you sign. Jason Power exclusively practices franchise law as a partner at Barber Power Law Group in Charlotte, North Carolina. He has assisted hundreds of franchisees with their FDDs and buying into franchises all over the country. Power also represents emerging and established franchisors. Contact Power at jpower@barberpowerlaw.com or by calling 980202-5679. Visit www.barberpowerlaw.com.

November 2018 31

fran·chis·ing \ fran-chī-z-ing \verb

1. The right to sell a company’s goods or services in a particular area 2. Covering the bases with Paul Segreto

Emerging Brands Versus Legacy Brands

What you need to know

s franchising continues to strengthen, new concepts are entering the market in a variety of industries. If you’re looking to buy into a franchise business, you now have more options than ever before. Along with exploring opportunities in legacy brands—those household names like McDonald’s, The UPS Store, and Gold’s Gym—you can also consider emerging brands, which are relatively new like Sub Zero Nitrogen Ice Cream, The Toasted Yolk Café, and Hummus & Pita Co. But why would you want to get involved with an emerging brand? After all, isn’t it safer to invest in a recognized brand with a proven system as opposed to investing in something new and relatively unknown? LEGACY BRANDS Typically, a legacy brand has been developed over many years—in some cases, 20 to 50 years or more. There’s a relative level of success as exemplified by the shear number of locations across a region or the country. The perception of success is even greater. 32

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And you’ll pay for that success—buying into a legacy brand tends to cost more than an emerging brand. But the brand name is well known from a multitude of geographic locations and a huge amount of advertising. Some legacy brands are equated to slogans or spokespersons—think KFC’s Colonel Sanders. For training and support, you’ll most likely find an impressive corporate office with various departments and possibly local field offices or training centers. Obviously, this type of business is well established and offers lots of support from corporate. It may be best suited for a franchisee who has a lot of upfront capital and who wants to follow systems—not develop them—that are already in place. An entrepreneur who can afford to make a big investment can make huge rewards. EMERGING BRANDS An emerging brand is one where the initial business, from which the franchise has been developed, is well known locally. The founder is also well known and may be a local

“An emerging brand

lets you get in on the ground floor of something.”

hero, of sorts. Customers live in the founder’s neighborhood with some knowing him or her from way back when. The brand is viewed as the antithesis of a big-chain establishment, attracting customers like magnets. An emerging brand lets you get in on the ground floor of something—there is the possibility of a big payoff, but there is also huge risk. This brand is in its infancy; it is not well known and its mass market appeal may still remain a mystery. For an entrepreneur who wants to help shape a brand and who is willing to take on more risk for more potential

reward, an emerging brand might be for you. Paul Segreto is a recognized entrepreneur, franchise and small business professional. His expertise includes startups and turnarounds, strategic planning, business and franchise development, branding, social media and digital marketing with primary focus on restaurants and service-driven businesses. Segreto founded Franchise Today podcast in 2009 and Franchising & You podcast in 2018. He is CEO of the Franchise Foundry. Contact Segreto at paul@franchisefoundry.com

November 2018 33

VETERAN FRANCHISOR

VETERAN SPECIAL

VETERA N

en·tre·pre·neur

FRANCHISOR

änn-trə-p(r)ə-'nər\noun

1. One who manages and assumes the risks of a business 2. Empowering veterans through business ownership

By Jill Abrahamsen t took years of working for other people for Jerry “JDOG”

Flanagan to realize he could be a successful entrepreneur. After serving in the military, he worked various minimum wage jobs until he decided to work for himself. Due to the down-turned economic climate in the 1990s, his first two business ventures failed, but he persisted. On the cusp of the 2008 recession, Flanagan took a look at recession-proof businesses. Junk removal came up as an option and seemed like a great fit. “I said to myself, ‘let me give this thing a shot,’” Flanagan recalls. With his staff of veterans, customers took note of the professional and courteous service. “We didn’t initially advertise that JDog Junk Removal & Hauling was veteran-run, but customers kept raving about our respectful customer service and suggested we should advertise the military connection. Once I took that advice, business started booming,” he says. “It was amazing. Customers would thank us for our service, make us lunch, and leave their homes open for us. There was an automatic trust simply because we were veterans,” he says. With more work than they could handle, Flanagan turned to franchising as 34

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a way to scale the business. The company’s mission is to empower veteran business ownership. “We believe in respect, integrity, and trust. We follow the principles of hard work, dedication, and community service,” Flanagan says. “We are made up of 90 percent veterans and 10 percent veteran family members.” Recycling and re-purposing is what sets JDog apart. “About 60 to 80 percent of the items we haul away are kept out of the landfill,” he says. “We encourage franchisees to sell and donate as much as possible.” Now approaching their 200th location, JDog has created opportunities for thousands of veterans and their families and made a difference on the environment. Flanagan went a step further and created The JDog Foundation. The foundation’s goal is to donate to organizations dedicated to improving the everyday lives of veterans, such as Operation Homefront. “It feels great to give back,” says Flanagan. For more information, visit www.jdogjunkremoval.com.

“We follow the principles of hard

work, dedication, and community service.”

Jerry “JDOG” Flanagan poses with his wife Tracy (above). JDog Junk removal & Hauling is owned and operated by veterans and veteran family members (right). Jerry Flanagan in his military days (far right).

November 2018 35

COVER STORY

pets PAMPERED

Savvy business owners offer new ways to show Fido you love him. By Jill Abrahamsen

et’s face it: No one is going to be a more loyal and true friend than your dog. Who looks at you as adoringly as Fido does? It’s a love that’s unconditional and with no expectations. No matter how late you come home, he is always happy to see you. Take care of his basic needs, and you’ll have a friend for life. But today, pet owners go way beyond pets’ basic needs. They pamper and spoil their pets even more than they spoil themselves. Has your dog had a spa treatment more recently than you have? Sounds about right. Today, our four-legged friends—dogs and cats, too—make up a $70-billion industry that shows no sign of slowing down. Here, we talk to franchisors who know that we want the very best for our pets— and they also know we’re willing to pay for it. These entrepreneurs have given us unique and specialized ways to care for them. Take Steven and Jason Parker, for example. Before they were even teens, they were in the pet business, walking dogs for local customers. Seeing the demand for pet-care, these forward-thinkers launched K9 Resort, a “five-star,” daycare and luxury hotel for dogs. Some may think pet pampering is over-the-top, but the numbers don’t lie. Experts call pet-care a recession-proof industry that will be worth more than $200 billion by 2025. Want in? This feel-good business might be just the thing to get your tail wagging.

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November 2018 37

COVER STORY

Dr. Pedro F. Armstrong

MOBILE PET IMAGING ENTREPRENEURS COME FROM ALL WALKS OF LIFE. THEY SEE A NEED AND FILL it with a unique product or service, delivered in a new way. Dr. Pedro Armstrong knows this well. He was a veterinarian looking for a better way to serve his clients. Dr. Armstrong saw a need to offer high-quality imaging services to better diagnose animals. “Although many veterinary practices have x-ray machines on-site, they don’t always tell the full story for a proper diagnosis,” says Dr. Armstrong. “CAT Scan machines are prohibitively expensive and too large for most vets to keep at their offices. Off-site imaging labs are often inconvenient and intimidating for pet owners. I thought there had to be a better and cheaper way.” His answer was Mobile Pet Imaging. As the name suggests, it’s a mobile pet-imaging service that brings high-definition, 3D CT Scan services on-site to veterinarians’ offices. “It’s a win for everyone. The pet gets a better diagnosis in a more comfortable setting, the family gets convenience at a cheaper price, and the vet gets to help his patient with a third party he can work with on an on-going basis. The customer will also be more likely to get the scan done since it’s more accessible,” he explains. In fact, Dr. Armstrong set up a system so that the client drops off a pet at the vet’s office and then picks them up later in the day. “This way, folks don’t have to sit around in waiting rooms and take time off from work.” Dr. Armstong’s goal is to bring this service to every major city in the U.S. by offering franchise opportunities. “We spent a lot of time perfecting the system. Franchisees will need to build relationships with veterinarians, but we have support materials in place for success. We even made an information book to hand out that explains what we do. It’s not just pets parents who are clients. Armstrong has partnered with zoos. “It’s a major convenience for the zoos and animals to bring the service to them.” For more information, visit www.mobilepetimaging.com. *Certain states require business ownership only by licensed veterinarians.

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A business to feel good about • Low overhead • Fast startup • Home-based WE GET THE LINT OUT

We help our customers protect their homes. Dryers run hot and lint is highly flammable—a dangerous combination. A devastating event can easily be prevented with one simple call to the experts at Dryer Vent Squad.

• High margins • Recurring revenue

www.dryerventsquad.com

888-DRYER-04 franchise opportunities available

The #1 Podcast In Franchising!

Download now on iTunes or socialgeekradio.com

#GeekItOut November 2018 39

COVER STORY

Steven and Jason Parker

K9 RESORTS

BROTHERS STEVEN AND JASON PARKER NEVER IMAGINED THEIR DOG-WALKING business would lead them to running a multi-million-dollar pet franchise. Back in 1999, at the ages of 14 (Steve) and 12 (Jason), the brothers started a pet-care business called K-9 Guardians Professional Pet Sitting to earn extra cash. They were successful and in time grew a loyal clientele. A few years later, attending a convention for pet sitters, Steven witnessed how successful other pet care professionals had become and told his father he wanted to drop out of college and build on his pet business. While that did not go over well initially, it certainly paid off in the long run. Recognizing a need for high-quality boarding services, the brothers set out to develop the finest pet-care facility available. “We spent many years researching, and in 2005, we purchased a commercial building in Fanwood, New Jersey. We had it custom engineered and constructed,” Jason says. K9 Resorts was an immediate success. “We knew we were on to something. We quickly surpassed kennels that were in business for years.” “We are a true five-star hotel for dogs. Kind of like The Ritz-Carlton. Everything is super highend.” Jason says. Armed with technology, there’s a hospital-grade ventilation system and flooring systems with Microban built in. There are three types of boarding options. The cage-free luxury suites are extra large and come equipped with art work and color televisions tuned to Animal Planet. The executive rooms are also cage free, but a little smaller, and there’s also traditional cage boarding. Other services include doggie day care and bathing. The brothers started franchising in 2011, with a loyal customer as the first franchisee. Initially, they limited the franchise growth to New Jersey and Pennsylvania so they could oversee operations. Now, with the help of a private-equity deal, they have resources in place to expand across the U.S. and give franchisees the tools they need for success. “Training takes place in New Jersey and then we come to the location to get them started. We provide marketing, website, and social media support. We are with our franchisees every step of the way,” Jason says. For more information, visit www.k9resorts.com

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Michele Hobbs

PET WANTS

GROWING FRUSTRATED WITH HER DOG’S SKIN ISSUES PROMPTED MICHELE Hobbs to do some research. “I was always bringing Jackson to the vet and nothing worked. After losing my job during the recession, and looking at expenses, it was clear I was spending way too much on treatments that didn’t work: steroids, antibiotics, cones, medical tape, salves etc.,” Hobbs says. “I knew it had to be a nutrition issue and eventually started working with a small manufacturer and doing local food trials. In 2010, Hobbs opened Pet Wants in a farmers’ market. “I knew from the beginning that I was going to franchise Pet Wants because the business model had never been done and there was a huge need for change in the pet food industry,” she says. Pet Wants makes and sells fresh pet food then delivers it to the customer’s door. “We offer the ultimate in convenience with our auto-delivery program. No more running out of food. No more heavy bags,” she adds. At the core of Pet Wants is the desire to provide pets with the best nutrition, health, vitality, and well-being by delivering a top-quality, fresh product. “Because we make so many of our Pet Wants products in-house, it allows our franchisees to prove their commitment to customers. No one touches our food except the production team, then it is delivered straight to the franchisee,” she says. Pet Wants is looking for active ownership. “Because we are so strict on the fresh-food model, we expect our franchise partners to be directly involved in the process,” she says. Franchisees balance their time between talking to clients at events and in our stores, then they have logistics of getting the product to the doors of the customers,” she adds. There are two franchise models: a full-blown retail pet store and a mobile unit. The mobile franchise is designed to take advantage of farmers’ markets, dog shows, community events, and festivals. “Events like these are a great and inexpensive way to introduce the food to a large number of customers and an easy way to acquire new subscription and delivery clients,” says Hobbs. Although not operationally managing the franchise system anymore, Hobbs is still a franchisee and the brand continues to hold her vision. Hobbs believes in the product so much, she doesn’t worry about the competition. “Amazon and Chewy can’t compare. No one has the fresh foods, nor the housemade fresh treats and products we make. Pet Wants beats the trend of vanishing retail,” she adds. For more information, visit petwants.com.

November 2018 41

COVER STORY

Mike Harris

PET PASSAGES

AFTER THE LOSS OF HIS TWO PET ROTTWEILERS, MIKE HARRIS RECOGNIZED A need for a higher level of service when it comes to end-of-life pet care. “Pets are members of the family. Pet parents seek the same level of dignity and respect for their pets as they would for human family members,” says Harris, founder, President and CEO of Pet Passages. A licensed funeral director with a long family history in the funeral business, Harris knows about that firsthand. In 2009, Harris launched a pet funeral home and crematory with the premise of treating the loss of a pet like the loss of a human. Pet Passages offers an array of services including cremation, funeral services, memorialization, and bereavement support. There is on-site euthanasia, done in a peaceful, quiet setting. Clients can coordinate services through their veterinarians or call Pet Passages directly. “Just like in human funerals, we have viewing rooms, so pets can be memorialized. We groom the pet and have a short service with prayers and poems,” Harris says. “People treat their pets like family more than ever before. Our service is very much in demand. We have strict chain of custody procedures to track the pet while it’s in our care. Our goal is to provide the most dignified, honorable, and technologically advanced services available,” Harris says. Franchising since 2016, Harris is looking to partner with franchisees who are pet lovers—especially ones who have experienced the loss of a pet—and can relate to the customer. “They must have people- and relationship-building skills to work with veterinarians and customers,” Harris says. Training takes two weeks and franchisees will get immersed in the day-to-day operations. “They will learn everything at a very intimate level. So when they open their own locations, they already had a front-row seat to the business,” Harris adds. “We spend another week at the franchisee’s location when they are ready to open their doors,” he says. For more information, visit www.national.petpassages.com.

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Jack Frampton

AUSSIE PET MOBILE PET GROOMING MAY NOT BE THE FIRST THING THAT COMES TO MIND WHEN you think of Australia, but it just so happens that Aussie Pet Mobile was launched “down under” back in 1996. The original mobile unit was a horse trailer pulled by a pick-up truck, but the brand evolved and now a customized Mercedes Sprinter van is the vehicle of choice, due to its longevity and durability. And that’s not the only thing that’s changed. The company moved its global headquarters to the United States in 1999. Since then, the brand has grown to more than 78 franchisees with about 260 units worldwide. “We prefer to keep growth at a slow and steady pace. We will only bring on 12 new franchisees a year. We want to make sure we are available for our new partners,” says Jack Frampton, vice president of franchise development. Aussie Pet Mobile offers grooming services for cats and dogs and services are performed right in front of the customer’s home (or office). “It’s the ultimate in convenience for clients, and it’s less stressful for the pet. Being in a familiar environment is a much nicer experience for the pet, without cages or high-pitched dryers that you would find at traditional groomers,” says Frampton. This is a full-time, owner-operator model. “We seek franchisees who are all in, who love animals, and who are excited about this business. Our culture is a team environment. We expect our franchisees to be compassionate and treat employees with respect,” says Frampton. Just like traditional groomers and hair salons, there is repeat business—upwards of 80 percent. “As the grooming is finished, the next appointment gets scheduled. This is a great opportunity in a growth area. Pet care is a $70 billion dollar industry, and it show no signs of slowing,” says Frampton. For more information, visit aussiepetmobile.com.

November 2018 43

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Passion for

PETS by Alesia Visconti

e are obsessed. We fret over what they eat, how they look, and their overall happiness. We pamper them. We post pictures of them on social media. We lose sleep if they are sick. We worry about them when we have to travel and leave them home. They protect us, keep us company, and love us unconditionally. Our pets are more than just the animals we keep. They are family. Indeed, pets are precious. If you need proof of that, take a look at the $69 billion pet industry, which by the way, is expected to hit $100 billion by 2020. Thinking of buying a franchise? The pet market—with so many sub-categories–may be a great bet. Today’s pet industry includes pet supermarket brands, grooming brands, daycare brands, and specialty pet-food brands, just to name a few. Not only is the industry growing—at a steady rate of 7.8 percent per year, mind you—but it’s proving to be extremely recession-resistant. Pet ownership is at an all-time high: 68 percent of all U.S. households include pets and many have more than one. While a pet franchise may include adorable four-legged customers, it is still a business. You still need to look at the business model, investment costs, royalties, and the training and support provided by the franchisor. But in an era where career bliss is often found outside of corporate America, owning a franchise in the pet industry can be very rewarding. You may even get puppy licks as a bonus. Alesia Visconti has 20-plus years helping others find their career bliss. She is the CEO of FranServe Inc, the world’s largest franchise consulting & expansion organization. Her motto in life is “work hard, play hard, help others, repeat.” She and her expert team of franchise consultants are passionate about helping others achieve their dreams of business ownership through franchising. Alesia is a self-proclaimed nerd and loves all things “superhero.” For more information visit www.franserve.com. To reach Visconti, call 800-206-5454 or email avisconti@franserve.com

November 2018 45

Pets & Profits Could a pet franchise be right for you?

By Lisa Welko

oday, nearly 80 million Americans are pet owners—that means more people have pets than ever before, according to the American Pet Products Association (APPA). And they’re not afraid to pamper them. In fact, this year alone pet owners are slated to spend more than $72 billion on their furry friends—which means there has never been a better time to own a pet franchise. From daycare and boarding, to grooming, training and all-natural foods, the pet market is a lucrative one, even in times of recession. According to Forbes, 92 percent of pet owners spend the same or more on their pets in a recession. After all, they’re part of the family.

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While you may be the world’s biggest animal lover, keep your franchise business decision about business. A “cheap” business can be an expensive mistake. Even if you’ve narrowed your franchise search to the pet industry—you still need to ask business questions. What’s the average investment? How many others are in the franchise system? How does the franchisor support my efforts? Is this business one that requires me to work full-time? Is there an opportunity to scale the business? Explore these questions and others, when looking to open your own business. Thinking of joining the pet franchise industry? Here are three popular categories to consider:

Pet Food Millennial pet owners, one of the most powerful generations of pet owners, are changing the pet-food selection. More than 55 percent of millennials will opt for natural or holistic pet food, according to a Packaged Facts’ Millennials as Pet Market Consumers report. Even for pets, natural foods and bakery goods manufactured from whole ingredients are thriving.

Doggy Day Care/ Boarding

Years ago, pet parents wondered why anyone would pay to have their dog play with other dogs while they worked. Today, however, most pet owners feel guilty if they don’t—what dog prefers to be alone? Enter doggy day care and boarding centers, which care for pets for the day (or night). Pet-care services is a $69 billion industry, according to APPA, and includes overnight boarding. Some doggy day care/ boarding franchises offer live Webcams so customers can even check in on their dogs.

Grooming This category encompasses dogand cat-grooming services, including washing and drying, nail trimming, and brushing inside a storefront location. Some franchises offer specially designed vans that pamper pooches at their customers’ homes. Lisa Welko helps aspiring business owners determine which specific franchise opportunities align with their strengths, goals, and values. For more information, visit www.integrityfranchisegroup.com

November 2018 47

Pets Mean

BUSINESS By Christopher Conner

t all started with a franchise that picked up dog poop. The Pet Butler was successful at creating a business and also in scaling it through franchising. This revealed that the pet business was officially a big business and the market segment was here to stay. This comes as no surprise when you consider the statistics: People spend big money on their pets. According to American Pet Products, in 2018 Americans will spend $72 billion on their pets. That’s big money. Many pet owners would spend to feed their pets before they would spend to feed themselves. We’ve all heard it by now, and the numbers speak louder than ever, pets are part of the family.

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“Franchising allows

‘normal’ guys like me to benefit from other people’s great ideas.”

The good news is this colossal expansion in spending gives rise to an amazing array of pet service franchise brands, which do everything from sell specialty pet items and food to provide unique pet services like picking up poop for clients. Some have literally defined entire market segments with great branding, innovative marketing, and outstanding business models. For example, Dogtopia, a dog daycare, boarding, and grooming center, has set the standard for the luxury dog spa and made a $1 million investment in the worthwhile facility. With almost 100 units in operation, Dogtopia is quickly becoming one of the most significant pet service franchise brands in the world. Dan Barton brought modern marketing and fitness industry business techniques to the pet industry with the Splash and Dash franchise. Designed from years of experience with Gold’s Gym, the concept demonstrates a keen understanding of the value of monthly membership models. Splash and Dash has opened units everywhere from Australia to Canada and throughout the United States, proving once again that some of the world’s best business techniques are already in play—they just need to be redeployed in new environments. THINK OUTSIDE THE BOX Some of the categories in pet services that are the most intriguing are those that fit specific niches within the pet market. Finding specialties within markets lets you become an industry leader and not “lumped in” with the competition. One brand that caught my attention is

Farewell, an in-home pet euthanasia service. The brand was founded by a medical professional and pet lover. She saw a glaring need for better, more caring services for a pet owner faced with the difficult decision to put her pet down. She created a service that could provide this in the comfort of home. PetMassage is a true market innovator in the pet massage and wellness services segment. Mr. Jonathan Rudinger has developed incredible techniques to help pets feel their best, deal with health ailments, and in some cases, just relax. PetMassage training programs have been implemented and used in training thousands of students in the U.S. and around the world. Mr. Rudinger has cornered the market with books, classes, teaching segments, and incredible publicity for the service offering. As a consultant for Franchise Marketing Systems, I get to see creativity, innovation, and fun business take place on a regular basis. The pet service franchise industry is proof of that. Franchising is the vehicle that lets these creative pet service entrepreneurs take their models to the masses, and the amazing creativity should be admired and praised. Franchising allows “normal” guys like me to benefit from other people’s great ideas. As the pet service industry proves, with the right business system, brand, and guidance, anyone can be a successful business owner. For more information, contact Chris Conner at Chris.Conner@FMSFranchise.com

November 2018 49

VETERAN FRANCHISEE

VETERAN SPECIAL

VETERA N

FRANCHISOR

From Army Life to Franchising How one military couple started over.

By Jill Abrahamsen

teve and Renae Adrian never aspired to own a signage business. The couple spent most of their careers making a living through the arts. Steve was a trombone player for the U.S. Army Band, and Renae was a trumpet player, music teacher, and an administrator for music and arts companies. They enjoyed their careers, but when Steve was coming up to his 20-year mark in the military and looking towards retirement, he started exploring other options. “I came across an ad in a magazine that was showcasing the top veteran-friendly businesses, and FASTSIGNS® was on the list,” Steve says. “Initially, I dismissed it. I knew nothing about the signage business.” But as they investigated franchise opportunities, they kept coming back to FASTSIGNS®. “The 50-percent discount on the franchise fee was a huge incentive and a difference maker for us,” he adds. The couple opened their location in Lynchburg, Virginia, in 2015. The discovery process was thorough. “They vetted us more than we vetted them,” Steve says. “We liked the business model, and while we don’t mind working 50

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hard, when Friday afternoon rolls around, that’s our time,” Renae adds. “Having the weekends off was a must for us.” The Adrians have been impressed with FASTSIGNS® every step of the way. “We can’t say enough good things about it,” Steve says. “As soon as we signed the franchise agreement, the corporate machine went into action, guiding us along. The leadership is stellar and the support is tremendous.” Being in the military gave Steve the

discipline and focus to run a business, and Renae’s diverse background was the perfect complement. “We are a great team and we each have our strengths when it comes to running this business. We couldn’t have done it without each other,” he adds. “Renae’s broad skill set was perfect for managing daily operations and customer service. She is the ‘maker-surer’ of our team. I am the wrangler. I am mission-focused. I run the installation crew and deal with supplies and billing.” This is a pretty specialized business. We’re

not just making bunt cakes here,” Steve says. Some of the jobs are pretty complex. “We learn something new every day. It’s really exciting. If we don’t know how to do a particular job, there is always someone to help us from the corporate office or the network of franchisees.” Much like in the military, franchisees need to follow a system, which was one of the many pluses going in for the Adrians. As Steve says, “We follow the recipe, because the recipe works. It has already been tested.” For more information, visit www.fastsigns.com

November 2018 51

VETERAN SPECIAL

VETERA N

VETERANS HELPING VETERANS

Help is on the Way

FRANCHISOR

How a military veteran helps others through franchising Are you a veteran looking for an opportunity in the franchise industry? Good for you! It just so happens that this is an excellent time to pursue a career in franchising—especially if you’ve served in the military. Not only is the robust industry growing, but many franchisors and brands are offering special discounts and incentives to veterans—knowing full well their unique training will help them lead, manage, and succeed in a new business venture. James Johnson, a U.S. army veteran who served in combat with the 24th Infantry Division—the Spearhead of Desert Storm—found himself wondering what to do upon returning to civilian life. Most available jobs seemed to be entry-level positions, and few positions could make use of a veteran’s unique skill set. Knowing many veterans face the same challenge— and knowing that many veterans turn to franchise ownership as a result—Johnson, along with his wife, Brandi, founded Nova Franchise Services, a firm that helps clients invest in franchise businesses. Military vets transition to franchise ownership seamlessly. Veterans are trained to follow systems, to obey rules and regulations, and to respect the talents and accomplishments of others. They are trained to depend on—and be part of—a high-performing team. Franchisors are well aware of these skills and often lure veterans to franchise ownership. Of course as with any franchisee, choosing the right franchise dictates your success. With so many options out there, it can be daunting to find the business model that is right for you. This is

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James Johnson who served with the 24th Infantry Division, now helps veterans find business opportunities. He and wife Brandi guide their clients through the process of business ownership.

where the Johnsons and Nova Franchise Services come in. With insider industry knowledge and through extensive interviews and personal assessments, they help clients navigate the process of franchise ownership. The Johnsons represent more than 500 franchises and align clients with those that meet their personal and professional ambitions. They bridge clients and franchisors and work with them to ensure that all questions and concerns are addressed. They help simplify the buying process and help potential franchisees make informed decisions. They’re personal agents, working in the best interest of the franchise buyer. For veterans, who find re-entering civilian life challenging, they are lifesavers. For more information, call James or Brandi Johnson at 866-858-4768 ext. 101 or 102, or visit novafranchising.com. Or, text 325-939-8460.

Americaâ&#x20AC;&#x2122;s first and most trusted drywall repair franchise company

FRANCHISE OPPORTUNITIES AVAILABLE November 2018

Reasons 5 Why

Military Veterans Succeed in Franchising by Alesia Visconti

he latest statistics from the U.S. Census

Bureau show that one in 10 U.S. business owners are military veterans. Unlike corporate America—which can often overlook these outstanding contributors—the franchise industry has long recognized the talents of those who have served. In fact, military training provides a unique set of tools for turning business aspirations into successful ventures. More often than not, military veterans shine when building their own businesses. Here’s why:

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They have leadership experience. Great leadership skills allow business owners to motivate their employees and deliver strategies that impact the success of their businesses. This leads to growth. Veterans provide a selfless brand of leadership that inspires dedication and loyalty. Members of the military are often more prepared to recognize and support the numerous needs of their business and staff. Their leadership decisions impact the well-being and attitude of their team members. A strong team means a strong business.

Military vets have self-discipline. Business owners wear many different hats and need high levels of focus and discipline to stay on target and accomplish a myriad of goals. Of course, once you’re the boss nobody is looking over your shoulder to ensure that you stay focused. Discipline is a well-known strength of military veterans. Among other things, they rely on it to wake up at the crack of dawn, to stay organized, and to keep fit. Having the discipline to do what needs to be done in business can translate to greater productivity and faster growth.

They build great teams.

As important as teamwork is, many business owners struggle to communicate and have a hard time relinquishing control. With teamwork, a key component of military culture, veterans have a clear advantage in this area. Members of the military carry out their duties within a group. Their success often depends on how well the team performs. Bringing this attitude to a business creates stronger bonds and encourages higher levels of performance among other team members—all of which lead to better results.

They perform well under pressure. Stress is a reality for new business owners. They have to act fast during emergencies, delegate tasks, and make quick decisions that take the business in the right direction. Military veterans are trained to do their jobs under the highest levels of pressure and responsibility, so they’re often well equipped to handle the stresses of entrepreneurship while remaining functional and effective.

They understand sacrifice.

Sacrifice is almost always part of the roadmap to success in business. New business owners often have to work long hours, when they’d rather be home with their families. They may make personal financial cutbacks so they can invest more in the business and so on. Sacrifice is also essential to military service. Veterans are often stationed far away from their families, others relocate frequently and some face the possibility of making the ultimate sacrifice. Veterans are so used to making big sacrifices that the ones that come with owning a business might seem minor to them.

Alesia Visconti has 20-plus years helping others find their career bliss. She is the CEO of FranServe Inc, the world’s largest franchise consulting & expansion organization. Her motto in life is “work hard, play hard, help others, repeat.” She and her expert team of franchise consultants are passionate about helping others achieve their dreams of business ownership through franchising. To reach Visconti, call 800-206-5454 or email avisconti@franserve.com

November 2018 55

5 QUESTIONS

What to ask yourself before taking the plunge into business ownership

ow do you know if you’re ready to start your own business? There’s no simple formula, but below are some questions to help you get started.

by Faizun Kamal

1. Am I ready? Do you rationalize your work situation with, “It isn’t

all that bad.” Do you talk non-stop about how much you dislike what you do, how little energy you have during the week, and how you spend the entire week wishing for the weekend? Does this sound like you? A wonderful career is so much more than the money it brings. Often it’s about things that money cannot buy—time spent on hobbies and interests, freedom to spend an afternoon at the playground with your daughter, independence from the rat-race of ever more possessions. To get out of a career you dislike, how much more are you ready to give up before you are ready to make a change?

2. What matters most to me?

What motivated you toward the career you have now? Money? The ability to take care of your responsibilities? Whatever motivates you does not have to be at odds with the work you do each day. It is possible to align your purpose with your passion and live it every single day?

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3. What one thing can I do today to move me towards my goal? Like Nike says, “Just do it!” No doubt,

the decision to move from employment to entrepreneurship is a big one. Ask yourself what is one tiny step you could take to move you forward? Start researching businesses in an industry that has always intrigued you. Reach out to one person in your network who does what you think you might like to do. As you do one small thing and then another, you will find your courage to tackle even bigger tasks.

4. What scares me the most?

When you think about being an entrepreneur, what makes you most nervous? Are your fears “realistic” or blown out of proportion? Looking fear straight in the face can greatly diminish it. Also, think back to the situations in your life when you imagined the worst possible outcome—that you would lose your house, investment, marriage. Did it happen? Manage your fears in proportion to the potential risk they present. Sometimes not doing anything to change your life is the biggest risk of all.

5. Do I have to do it all myself?

Franchising lets you be in business for yourself but not by yourself. As you embark on this exciting, life-changing journey, who are the people that surround you? Friends and family who support you and have your best interest at heart? Or, naysayers who have something to lose if you make a positive change? Sometimes, when you’re faced with a big life transition, a coach can be invaluable. A life or business coach can help clarify your motives and values and marry them with your skills and strengths. Together, you can uncover the perfect-fit business for you.

Are you considering starting your own business? Curious about what it takes to make that step? Reach out to Faizun Kamal, at faizun@thefranchiseconsultingcompany.com

November 2018 57

HOW DO THEY DO IT? by Holly Ford It’s one thing to start a new business, but franchising it is a whole other story.

Ever wonder how businesses get franchised? Strategic planning,

that’s how. Even if the existing location is doing well, entrepreneurs need to put systems in place to be successful in franchising. Below are some of the steps needed to franchise a brand. Make sure the business you’re considering has done its due diligence.

DESIGN Make it different: A solid concept will have differentiation. Maybe it’s a truly unique concept, an exceptional management experience, a strong ROI, or even an at-home, low-investment advantage. But somehow the concept has to be different than others. Make it replicable: A concept must have detailed systems and procedures in place that a new owner can learn in less than three months. Make it profitable: A powerful concept, most essentially, should optimize for unit profitability. The concept should bring a cashon-cash ROI (akin to a dividend return) of 15 percent by the end of the second year after owners’ salary. Concepts that sell multi-units or master developers should aim for 20 percent to offset the incremental overhead associated with multi-unit management. Research: A successful franchise concept should have true growth potential based on the existing market along with forecasts and industry trends.

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BUILD IT There are several costs associated with franchising a concept. Generally, areas of financial focus include: Operational Support: This is a critical step when launching a concept. Good operational support prevents franchisees from bleeding their working capital and in return, creates good validation to continue growth. Training: There aren’t a lot of heavy costs after the initial corporate training concludes. However, some franchisors pay for the training, transportation costs, and food as an incentive. Legal: The franchise disclosure document (FDD), needs to be created to give both the franchisor and franchisee legal protection. Sales and Marketing Support: Franchisors need to invest in a strong team to assist new franchisees in sales and marketing. Sales and Development: Hiring a sales team with franchise success or partnering with a strong brokerage firm is essential.

DEVELOP Interest: Determining who the best franchisees are to grow the concept will be refined over time. However, the most important factor is interest. Many invest in concepts because of ROI or resale value. Both are good reasons, but without passion for a concept the business is often status quo or falls behind other interests, and thus, declines. Excitement for the concept translates into great employees and raving fans—which, of course, validates well and creates great royalties. Capital: A financially solvent entrepreneur who doesn’t have to look over her shoulder to make sure she can make payroll, can focus on building a new business. Share the market wisely: Initial location choice is generally driven by the specific concept, although there are basic principles that govern market determination as a whole. The first is to target markets near the initial concept location, then leave room for market share for each location. The purpose is two-fold: First, it’s much easier for the new franchisor to assist directly as any difficulties occur. Secondly, it initiates geo-concentric branding—the concept of directly branding to a small region, while at the same time, the individual stores begin to develop their market share. ANTICIPATE Care for franchisees: Many brands are phenomenally successful at selling the concept only to find themselves with high attrition rates and extremely difficult validation. The best brands keep franchisees involved and supported. Be critical: An important time in a franchisor’s life cycle is the two-to-four year mark. Failures begin to manifest during this time. Franchisors need to create and actively update performance

standards, compliance check lists, and best practices during this critical period of growth. Watch the competition: Franchisors always need to watch competitors. They need to keep the concept differentiated and be willing to make tough choices to stay in the game. ACHIEVE Stick around: A successful franchise is one that has stood the test of time. This franchisor will have a concept that, over time, becomes consumer-driven. Franchisees relish in strong branding, high margins, and a great resale value. The franchisor will have low attrition rates and great validation, which all translate into easy sales and high royalties. Growing the brand: A successful franchisor has a long-term vision that is sustainable. He understands the dynamics of the marketplace and has an intuitive grasp of where the marketplace is trending. He uses this data to provide the entire franchise opportunities for growth. Keep evaluating: A successful franchisor is continuously evaluating the ongoing value of the concept. He engages in an annual negotiation of discounts for his franchisees, updates software that supports the franchisee’s growth, and he introduces and tests new products and services to keep the brand positioned well. Support: Finally, the successful franchisor provides over-the-top support of franchisees. She keeps the ratio of operational support-to-franchisee low, and she makes sure there are established systems and procedures to detect early warning signs that a franchisor may need extra help. Contact Holly Ford at 513-828-9810 or holly@thefranchiseconsultingcompany.com

November 2018 59

Big Small Ideas, Businesses D

id you know that businesses with less than five employees make up 32 percent of all businesses in the U.S.? According to the Small Business Association, more than half of the businesses in the U.S. are considered small, and that number is growing. The SBA’s definition varies industry by industry, but generally they are businesses with a maximum of 250 employees or 1,500 employees. Since 1,982, the SBA says the number of small businesses has increased a whopping 49 percent. The Kauffman Index of Entrepreneurship, a leading indicator of new business creation in the U.S., estimates that 310 out of every 100,000 adults become new business owners each month. Why is owning your first business such a popular option? The answers are as individual as the potential business owners themselves, but I believe the primary reason is the fact that you are finally your own boss. You make the choices and 60

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the decisions. Employees play by your rules. When it comes to franchising, this is even more appealing because you get to be in business for yourself, but not by yourself. So while you get to call the shots, you also have a stream of support in place to help get off the ground and keep things running seamlessly. The process and the pride are factors, too. Have you ever planted a seed, then felt proud when the seed sprouted and started to grow? First-time business owners also discover what “I did it” feels like. Usually, it’s not about the bounty or money. It’s knowing about the sacrifices you’ve made to make the business work and also about the time and hard work, you’ve put in. So if you’re thinking of buying into a franchise, remember the business might be small but the rewards—the personal ones—are big. Contact Rich LeBrun at 1-224-678-9212 or Rich@TheFranchiseConsultingCompany.com

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This comprehensively researched and deftly written franchise guide brings together experience and fact to give you the tools you need to understand which franchise is right for you. With insights from respected franchise leaders and a thorough knowledge of franchising, this book will help you understand and master the 4 Critical Steps to finding the Ideal Franchise.

www.TheFranchiseMBA.com

November 2018 61

SPECIAL SECTION: PART 4

Breaking Down

the FDD

Item 11: Franchisor’s Assistance, Advertising, Computer Systems, and Training

By Nicole Micklich

tem 11 is intended to provide an understanding of the franchisor’s obligations to his franchisees. For every one of the franchisor’s obligations disclosed in Item 11, the franchisor must include a citation to the specific section of the franchise agreement where the franchisor agrees to the obligation. Item 11 can be lengthy and complicated. This piece breaks down the topics Item 11 must cover: pre-opening assistance, post-opening assistance, optional assistance, advertising, computer requirements, and operating manuals. One thing to keep in mind is that the franchisor is only bound by obligations set forth in Item 11—so if a potential obligation isn’t mentioned in Item 11, the franchisor doesn’t have to act on it. In fact, the FTC requires franchisors to begin their Item 11 disclosure with the following statement, in bold print: “Except as listed below, [franchisor] is not required to provide you with any assistance.” PRE-OPENING ASSISTANCE Pre-opening assistance might include site location assistance, site requirements, and lease negotiation. In some systems, pre-opening assistance includes initial training.

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POST-OPENING ASSISTANCE Training: Franchisors are required to disclose information about their training programs including information about the staff who provide the training. Some training disclosures must be summarized in a table that must include: • a list of the subject matter of the training • the hours of classroom training on each subject • the hours of on-the-job training • the location of the training In addition to the table, franchisors must also disclose who is required to attend training, for example, whether a franchisee’s store manager must undergo certain training, as well as who pays for travel and living expenses during training, and whether refresher training is required. Advertising: The franchisor is required to disclose information regarding advertising assistance including: • whether the franchisor is required to conduct advertising • the media used for advertising, such as radio, television, Internet • the source of the advertising

• • • •

the geographic scope of the advertising whether or not franchisees must contribute to an advertising fund whether and how much franchisees are required to spend on local advertising whether and how advertising councils or co-ops operate in the franchise system

Advertising Funds: If franchisees are required to contribute to an advertising fund, the FTC rule requires franchisors to disclose: • who contributes to the fund • whether other franchisees and franchisor- owned units contribute on the same basis • who administers the fund • whether the fund is audited • whether the financial statements of the fund are available for review • whether the franchisees receive periodic accountings of fund expenditures • the percentage of the fund used primarily to solicit new franchise sales

assistance separately and clearly identify that it is not required by the franchise agreement. COMPUTER REQUIREMENTS In Item 11, franchisors are also required to generally describe computer requirements for franchisees. These might include the franchisor’s requirement that franchisees purchase specific software, from specific approved suppliers. The disclosure should also explain whether the franchisor will have independent access to the franchisee’s computer system or electronic cash register and whether the franchisor has the right to conduct audits of accounting records maintained electronically. OPERATING MANUAL Franchisees will receive a system’s operating manual after the purchase is complete. Here, Item 11 requires that franchisors disclose the manual’s table of contents, unless the franchisor offers prospective franchisees the opportunity to review the operating manual prior to buying the franchise.

OPTIONAL ASSISTANCE If a franchisor provides pre- or post-opening assistance other than what the franchise agreement Nicole Micklich is a franchise attorney with requires, it can disclose that optional assistance Garcia & Milas. Contact her at 203-773-3824 or in Item 11. The franchisor should list the optional nmicklich@garciamilas.com

November 2018 63

in·ter·view

\�in-tər- vyü \ � noun

1. A Q&A session with an industry expert 2. Mariel Miller on how to fund your business.

With more than 27 years of experience in

franchising, Mariel Miller helps clients who want to enhance quality of life, increase flexibility, and improve net worth. Here, she talks about funding options. Contact Mariel at 732-481-5188 or email her at Mariel@TheFranchiseConsultingCompany.com

What are some common misperceptions when it comes to funding a franchise?

There are a lot of inaccurate assumptions about financing franchise ownership. Some of the most common are: • It’s best to choose a business first and then consider funding. • Business financing is as simple as consumer financing. • All you need is a good credit score to get financing. • Business assets will provide enough collateral. • Existing businesses are easier to finance than new businesses. • A bankruptcy or foreclosure makes it impossible to obtain financing. • And the long-ingrained thinking that 401K retirement funds should never be touched or can’t be considered. The truth is, there are very popular tax-free, penalty-free programs using qualified plans, making business ownership a reality for many.

What is the first step potential franchisees should take when it comes to funding?

The very first step is to involve your significant other as investments of any sort affect the entire household. Next, figure out your assets and liabilities, your monthly household budget, and current credit score. If you are working with a franchise advisor or coach, you want to discuss your investment and income expectations early on, so you can narrow down your options. Then get connected with the right people at franchise finance companies for pre-approval. If you were buying a home, you would figure out what your budget is before contacting a Realtor.

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What are some low-cost, high-return options?

Unlike with a resale business, in franchising, particularly with low-cost options, there isn’t necessarily a direct correlation between an all-in investment and a potential return. When it comes to specific sectors and models, the initial costs are not indicative of revenue output or profits at all. There are many successful franchise systems in the $75,000 to $150,000 range, where owners enjoy building million-dollar and even multi-million-dollar businesses over time. Quite often margins are very healthy and far surpass what people would expect. In the end, it’s a combination of the right business model, the right sector, and the right brand and systems that create exciting, lucrative opportunities.

What are some SBA lending trends? The early numbers in 2018 are showing an increase in lending-approval percentages. This is great news for small business owners. What comes with a strong economy, though, is the rise in interest rates, so it’s more expensive to borrow money.

What are the biggest mistakes investors make when it comes to funding?

People have a tendency to underestimate important aspects about funding. Often, they underestimate: • What they can afford: More often than not, a client will give us an investment budget based on what he thinks he can comfortably finance. Often after a consultation that determines potential “fundability,” the client is pleased to learn that his actual budget can be higher, often a lot higher. • How many options there are: Rather than assuming you cannot afford a top opportunity, determine a reasonable budget through conversations with franchise advisors and the right finance people. It’s important to be accurate and detailed when it comes to financial goals. • How long the process can take: Starting early is key. Even before you explore categories or brands, it’s best to have a few in-depth conversations to learn about programs and create a general strategy.

November 2018 65

spot·light

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1. Trending franchise businesses you want to know about 2. A great place to show off your franchise

Dryer Vent Squad® Deck Medic® Since 1990, Deck Medic has established itself as the number one outdoor wood restoration company in the Chicagoland area. Deck Medic® has its own line of proprietary cleaners, strippers, and 100-percent oil-based stain that can only be purchased by franchise owners. Excellent customer service and the trademark Five-Step Wood Restoration Process sets Deck Medic apart. For more information, visit www.mydeckmedic.com

® 66

WE GET THE LINT OUT

Dryer Vent Squad® provides a valuable, inexpensive service to homeowners that saves time, money—and could potentially save homes and lives. Since approximately 80 percent of all U.S. households have a clothes dryer, there is a huge base of potential customers. Dryer vents need to be cleaned and maintained on a regular basis. Dryer Vent Squad® takes away the worry and lets families reclaim time and money. For more information, visit www.dryerventsquad.com

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The Inspection Boys® If you’re looking for a lowcost, high-reward business, check out The Inspection Boys. Offering a service that’s in demand, but in a newer franchise system, franchisees reap the benefits of huge territories with a tried-and-true business concept. The company prides itself in its cuttingedge marketing, using the latest in search engine optimization and social media to promote the brand at a corporate level. This homebased business offers low overhead, big margins and quick ROI. For more information, visit mjminspection.com or call 1-800-819-4403.

The Waffle Experience® Midtown Chimney Sweeps®

TAKE YOUR BUSINESS TO G

Shoe Shine Guys®

• Unique In-Demand Bu • Low Investment • Fast Startup

The hearth industry is one of the fastest growing franchise opportunities in the United States. By investing in Midtown Chimney Sweeps®, you are not only purchasing a proven business model and marketing system, you are ensuring that you get and keep customers. The hearth industry is currently worth more than $2 billion, with 52 percent of all U.S. households having at least one fireplace. Midtown Chimney Sweeps® is the first chimney sweeping franchise in the U.S. to meet that demand. For more information, please call 844-SWEEP-NOW or visit the website, www.midtownsweeps.com

Named as a must-try in MSN’s 50 Best Things to Eat Before You Die, The Waffle Experience is on the fast lane for franchising success. With a cultlike following, customers are standing in long lines to try TWE’s decadent dishes, which are made from locally sourced natural and organic ingredients and paired with flavor-infused waffles. A favorite, “Praise the Lard” features house-braised pork belly, a cage-free egg, arugula, roasted tomato, ricotta, cracked pepper agave syrup with a lardon-studded herb waffle. Franchisees enjoy a family-friendly schedule, low investment, and protected territories. For more information, call 916317-6057 or visit www.thewaffleexperience.com

• Mobile Business

If you want to get in on • Hands-On Training the ground floor of a • Recurring Revenue St • Continued Marketing truly unique business,Franchise check out The Opportunities Available John@theshoeshineguys.com (734) 645-2286 Shoe Shine •Guys. A • www.theshoeshineguys.com shoe-shining service on wheels, The Shoe Shine Guys offers the ultimate in convenience for corporate clients. They 2 The ShoeShineGuys.com come on site to business offices, such as law firms and corporations, collect and shine shoes right in their van, and return them all in the same visit. Franchisees create regularly-scheduled service times for predictable, repeat business. For more information, call 734-645-2286, email john@theshoeshineguys. com, or visit the website,

www.theshoeshineguys.com TAKE YOUR BUSINESS

• Unique In-Dema • Low Investment • Fast Startup

• Mobile Business

• Hands-On Traini

• Recurring Reven

• Continued Marke

Franchise Opportunities Available

John@theshoeshineguys.com • (734) 645-2286 • www.theshoeshineguy

November 2018 67

spot·light Enhance IV®

Just Let Me Do It Commerical Services® If starting a business with an existing customer base sounds good to you, consider Just Let Me Do it Commercial Services. With corporate contracts in place, franchisees have jobs waiting for them on day one of opening for business. A handyman service for businesses, franchisees enjoy a turnkey model with low start up costs and high margins. The 20-year-old company has a proven business model and is now offering franchise opportunities. For more information, please call 704-960-4554 or visit the website, www.justletmedoit.com

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Looking for an exciting concept in a growth industry? Enhance IV is now offering franchise opportunities. Once reserved for professional athletes and celebrities, this concept is becoming more accessible and getting attention for its many health benefits. The treatments help patients boost energy and metabolism, reduce stress, detoxify, and improve immune function. IV vitamin therapy is a cutting edge modality that allows you to achieve much higher concentrations of powerful antioxidants and other vital substances in the bloodstream than you could ever achieve orally. The business offers low startup costs and recurring revenue. For more information, contact enhanceiv.com or 610-228-0400

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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 repairs themselves. When you join The Patch Boys® family, you become a part of an entrepreneurial community that works together to advance the brand. For more information, call 844-99-PATCH, or visit www.thepatchboys.com

Thinking about buying a franchise? Call us rst. “Just like a realtor can help you nd a home, the experts at The Franchise Consulting Company can help you nd and understand your franchise options.”

WHAT WE DO We help you identify, investigate and get educated about franchise businesses. Like a realtor, our services are free of charge to you as our fees are paid by the seller. MARKET LEADER The Franchise Consulting Company is the market leader for entrepreneurs structuring a comprehensive investigation to analyze the franchise options available to them. EXPERIENCE With over 2000 years of collective experience helping individuals purchase, operate and exit franchise businesses, we invite you to leverage our knowledge of franchising. FREE OF CHARGE If you are thinking about owning a franchise, reach out to us and we will connect you with one of our 100+ local consultants across the USA. Free of charge. SPECIAL OFFER Reference this ad to your consultant and receive a FREE copy of The Franchise MBA - the #1 Bestseller Refe and Amazon’s highest reviewed book on franchising.

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last word

1. A stellar business concept 2. How Wild Birds Unlimited took flight and keeps soaring

Personalized service leads to a loyal following Simple Steps to Bring Lasting Success 1. Have passion: With a passion for wild birds and a masters in horticulture, Jim Carpenter founded Wild Birds Unlimited back in 1981. He believed in his business and spread that enthusiasm throughout his company. After 27 years, he still serves as the CEO and happily comes to work every day. 2. Create a loyal following: With a mission to bring people and nature together, Wild Birds Unlimited has a customer-first culture.. Franchisees and employees develop personal relationships with their customers and share a common passion. 3. Target hobbyists: Roughly 81 million people feed birds and watch wildlife in their own backyards. Enthusiasts spend $7.6 billion annually on this hobby. 4. Maintain high standards: Wild Birds Unlimited is consistently receiving awards for franchisee satisfaction, conservation, and for outstanding leadership in franchising. 5. Create a feel-good business: Letâ&#x20AC;&#x2122;s face it, birdwatching makes people happy. Itâ&#x20AC;&#x2122;s an educational hobby that can be enjoyed at any age. Feeding birds in your backyard also invites them to feast on critters in your landscape, which provides organic pest control and diminishes the need for toxic insecticides or other harmful chemicals. For more information, visit www.wbu.com 70

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Franchise Law . Construction Law . Labor Law . Real Estate Law . Litigation . ADR FRANCHISE LAW. CONSTRUCTION LAW. LABOR LAW. REAL ESTATE LAW. LITIGATION. ADR

EXCEEDING FRANCHISEES' EXCEEDING FRANCHISEES’ EXPECTATIONS FOR OVER EXPECTATIONS FOR MORE THIRTY-FIVE YEARS THAN THIRTY-FIVE YEARS

Raymond A. Garcia Experience… Experience... I. Milas Raymond Jane A. Garcia Imagination… Nicole JaneL.I.Micklich Milas Imagination... Commitment… Nicole L. Micklich Commitment... Success… Success... ® 44 Trumbull Street, New Haven, CT 06510, USA 44 Trumbull New Haven, 06510, USA Phone: Street, 203.773.3824 Fax:CT203.782.2312 Phone: 203.773.3824 Fax: 203.782.2312

FDM-November2018

Articles inside

Breaking Down the FDD

Sweet Returns

Simple Steps to Bring Lasting Success

Help is on the Way

From Army Life to Franchising

Pets Mean Business

Pets & Profits

Passion for Pets

Mobile Pet Imaging

Pampered Pets

Featured Entrepreneur—Jerry "JDOG" Flanagan

5 Reasons Why Military Veterans Succeed in Franchising

Franchisees of the Month

Why your business needs a WordPress Multisite

Customer service tips

From Marine to CEO

Tips for Buying a Franchise Resale