Franchise Dictionary Magazine—September 2018 by franchisedictionarymagazine

FranchiseDictionary FranchiseDictionary FranchiseDictionary FOOD FranchiseDictionary FranchiseDictionary SEPTEMBER 2018

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THE ABC’S OF FRANCHISING

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He left Corporate America and never looked back.

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September 2018 17

buzz•word

Franchise Terms to Know Stage Coach Cheryl Lowe always had a knack for decorating. After taking time off from her career as a software engineer to raise her children, she decided to turn her hobby into a business. In 2013, she launched a home-staging service, now known as Chic Chateau. “Most customers are folks who are selling their homes and want to get top dollar,” Lowe says. “There’s a huge demand for our services.” As the business grew, folks often asked Lowe how to start their own staging companies. The question prompted Lowe to look into franchising, which seemed like a natural fit. Today, she offers franchise opportunities. There is no design experience needed. “You just need a love of decorating. We teach franchisees how to do everything else,” Lowe says. “Chic Chateau is a unique offering in home-decorating services,” according to Cindee Brown of Turnkey Franchises. “It’s a great fit for anyone looking for a low-cost way to start a home-decorating business.” For more information, visit www.chicchateau.com 18

There’s lots of terminology that goes along with franchising. Below is a continued list of terms we started in our August issue. For a more extensive list of franchise terms, check out our resources tab and look under “Franchising 101,” or click this link http://franchisedictionarymagazine.com/words-to-know/ Franchise fee: The initial up-front fee a franchisee pays for the right to purchase a franchise and use the trademark and business system. This is typically paid at the signing of the franchise agreement. Franchisor: The franchise company and owner of a franchise system’s trademark brand that provides usage rights to a franchisee. Federal Trade Commission (FTC): A federal agency assigned to regulate franchises. This agency protects America’s consumers and assists in protecting them against false, deceptive, or unfair trade or advertising practices. International Franchise Association (IFA): Founded in 1960, this membership organization includes franchisors, franchisees, and suppliers.

Initial investment/start-up costs: The initial investment that the franchisee makes in becoming a franchisee during the start-up period. Receipt acknowledgment: In franchising, the receipt to be signed by a potential franchisee as proof of the date of receiving the FDD. Renewal: Franchise agreement lengths vary and expire after anywhere from five to 20 years. After the initial agreement, the contract may be renewed but not always under the same original conditions. A renewal fee may be less than the original franchise fee. Royalty fee: The share or percentage of gross sales paid by the franchisee to the franchisor on a recurring basis from the franchisee’s generated sales.

Susan Scotts is an alternative career coach at The Entrepreneur’s Source. Contact her at 561-859-9110 or coach@susanscotts.com

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RESTAURANTEURS,

We Present A Toast

The Toasted Yolk Café is changing the way people think about breakfast, lunch… and franchise opportunities! We have seven thriving locations in Texas with more scheduled openings for 2018 and 2019. Our guests are lining up early to be served chef-inspired dishes while the competition is still asleep. Visit us online to discover what’s made the Toasted Yolk Café one of Texas’ fastest-growing franchise dining concepts.

THETOASTEDYOLK.COM/FRANCHISE

buzz•word

What are you afraid of?

Your page URL should also contain the main keywords from your article. Separate these words with a hyphen so search engines can index them properly.

Maya Angelou once said, “Hope and fear cannot occupy the same space. Invite one to stay.” If only it were that easy. Hope and fear are actually two sides of the same coin. If you’ve ever started a new job, had a new baby, decided to get married, got a driver’s license, or had a new experience, you’ve probably felt fear. It’s a universal emotion. The good news is that fear isn’t always a bad thing. In fact, it can be a great thing—as long as it’s channeled the right way. Are you contemplating buying into a franchise? If the fear you feel is a red flag that prevents you from jumping headfirst into a venture without doing your due diligence, then this fear is good and empowering. It cautions you to minimize your risk and protects you from rash decisions. On the other hand, fear can also be a debilitating feeling that stops you in your tracks before you’ve even given yourself the chance to explore something new. Sometimes, a new opportunity can be the chance of a life-

Michelle Hummel is CEO of www.webstrategyplus.com

Faizun Kamal is a consultant with The Franchise Consulting Company. Email her at faizun@thefranchiseconsultingcompany.com.

5 SEO TIPS TO BOOST YOUR BUSINESS Create a blog strategy.

Search engines love fresh content. Publish two to four new blogs each month.

Connect your blog content.

Link your current blogs to older posts to interlink pages and create multiple pathways through your website.

Create a call to action.

At the end of each blog, write a call-to-action. Offer a free guide or have readers subscribe to a social media channel.

Use images.

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time. This kind of fear is self-destructive and disempowering. It can lead us to things that are not good for us—like staying in a toxic work environment because the fear of the unknown is too overwhelming. Does the thought of starting a franchise—breaking with your career, charting an unknown path—scare you? Good. It simply means you are human. As fear rises, take a deep breath and go inwards. Ask yourself: Why? What about this scares me? Am I acting too quickly? Am I scared of failing? Am I scared of being successful? What will success mean? Am I scared because I might lose friends and family? Helping clients manage their fears—and use them to their advantages—is part of my job as a franchise consultant. My advice? Welcome that good fear. Rational fear can propel you to do thorough research, ask more questions, and make informed decisions. So who knows? Maybe hope and fear can occupy the same space.

contactus@webstrategyplus.com

September 2018 21

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up·date

\�əp- dāt\ noun �

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

A Sign of Gratitude

SIGNARAMA BOOSTS COMMUNITY MORALE IN WAKE OF DEVASTATING WILDFIRES John and Ashly Robbins, owners of the Signarama shop in Redding, California, wanted to thank first responders in their area for bravery during a nearby brush fire that turned into an out-of-control fire-tornado or “firenado.” At their Signarama shop in downtown Redding, staff voluntarily came in and worked two 24-hour shifts to design and print “thank you” signs for first responders, as well as others who came to the rescue of families throughout the area. The Signarama team printed and distributed more than 6,000 signs, thanking firefighters, law enforcement, first responders, heavy-equipment operators, and utility and air-support workers, among others.

September 2018 23

up•date In brief A WISH COME TRUE

Coffee for a Cause Petland recently announced that it has helped grant 350 wishes during its 20-year relationship with Make-A-Wish® America. Safari Stan’s Children’s Charities by Petland was formed in 1994. Petland has two children’s charities: Make-A-Wish and St. Jude Children’s Research Hospital. Petland has collected nearly $500,000 since 2009; and since 1998, the company has fulfilled more than 350 wishes for Make-A-Wish kids who wish to have a pet. Make-A-Wish has fulfilled the wishes of more than 300,000 children with critical illnesses since 1980. “Petland believes in the human-animal bond and the importance of pets in our lives,” says Elizabeth Kunzelman, Petland’s director of public affairs. “We’ve seen and heard how special these pets have become to children and their families. We are so thankful to have the opportunity to help.”

THE COFFEE BEAN & TEA LEAF® SUPPORTS LOCAL CLASSROOMS IN NEED The Coffee Bean & Tea Leaf® is introducing limited-edition Bright Future Blend coffee and tea for the back-toschool season. (The coffee and tea blends are available until September 30.) One dollar from each sale will be donated to fund projects at schools around companyowned retail locations in California and Arizona, as well as participating franchise stores.

The “Bright Future” campaign is part of the company’s Caring Cup Initiative, which supports local communities. The campaign will officially kick-off by funding three local schools through DonorsChoose.org, an organization that provides funding for teachers to create their dream classrooms and inspire students to maximize their learning potential.

A Cut Above HAIRCUTS WILL NEVER BE THE SAME Now men will have a place to sit back, relax, spruce up—and enjoy a cocktail. Scissors & Scotch, a modern men’s barber shop, complete with a full-service bar and private lounge, is rapidly expanding, thanks to the franchise opportunities that launched in 2017. “The nationwide demand

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for Scissors & Scotch proves that men everywhere want a better grooming experience,” says co-owner Erik Anderson. “We wanted to create a place where guys can get a quality haircut, enjoy a drink (or two), and spend some time relaxing. Getting haircuts shouldn’t be a chore,” he adds.

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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.

800-846-5405 | info@TheFranchiseConsultingCompany.com | www.TheFranchiseConsultingCompany.com August 2018 25

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

1. An outstanding franchise owner 2. Taking the leap to franchising and never looking back

BRIAN ROBEY Deck Medic of Northwest Indiana

By Jill Abrahamsen

orking in Corporate America helped Brian Robey develop many skills needed to run a franchise business: Managing people, developing relationships, and balancing profit and loss are just a few that come to mind. But Robey’s relationship with two clients had the biggest influence on his future as a business owner. While handling the Deck Medic account in his position with SherwinWilliams, Robey saw the growth and value of the franchise firsthand. Getting to know the management team, he recognized the passion and integrity behind the brand. “Jeff and Mike are stand-up guys. They have a passion for the business and are headed for huge growth,” Robey says about Jeff Konopak and Mike Nastepniak, co-owners of Deck Medic. While Robey enjoyed his career with Sherwin-Williams, he had a desire to work for himself and make his own hours. “I wanted to find a way to do the things I wanted to do. I wanted to be at my son’s baseball games and my daughter’s concerts. I wanted to be able to enjoy my family,” he says. The wood-restoration franchise was a no-brainer for Robey. “My back26

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“I would never go back

to Corporate America.”

Making the switch from Corporate America to Deck Medic franchisee was a game-changer for Brian Robey and his family.

ground was a perfect fit for Deck Medic, and I knew these guys were running a business that had huge potential. I wanted to get in on it.” The biggest challenge Robey faced was finding and retaining good employees. Since it’s a seasonal business—especially in Indiana—the winter months can be slow. But Robey found the perfect solution. He partnered with a local holiday light-decorating service. “It was a great way to keep my guys busy year-round, and a lucrative one at that. Now I don’t have to worry about turnover nearly as much,” he adds. Another perk for Robey is being able to give back to the community. “We have volunteered services to Habitat for Humanity. I’m a regular

sponsor and coach for my son’s baseball team and I am involved with the local Chamber of Commerce. I wouldn’t have had the time to do all that in Corporate America,” he says. Now in his sixth year as a Deck Medic franchisee, Robey is thrilled. “I would never go back to Corporate America,” he says. “I can set goals for myself and can reach a 20-percent increase each year. That’s a lot better than the two percent I was getting working for someone else. The best part is that while I am my own boss, I have great support from the corporate team. They are always there to help when I need it.” For more information, visit www.mydeckmedic.com

September 2018 27

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

Legal issues restaurant franchisees face

wning a restaurant can be a fun way to make money. Like any other business though, a restaurant franchise comes with its own set of legal issues that you, as the owner, must manage. Before you open your restaurant, talk with both a franchise attorney and an attorney

who is well versed in the local laws in your state and those laws relating to restaurants. Here are five legal issues that restaurant owners typically encounter.

PERMITS AND LICENSES When preparing to open your restaurant, research the laws of your city, county, or state. Any or all of these local governing bodies may require permits or licenses, BUSINESS STRUCTURE which include a food-service permit, alcohol Your business structure—the actual place license, business license, and a food-safety where your business is run—is important permit. It can take several weeks to get apwhether you are opening a restaurant fran- proved for licenses, so you should apply for chise or any other type of business. When these as soon as possible. choosing your type of business structure, you should always talk with an attorney EMPLOYEES and an accountant. An attorney can assist Employees can be one of the most frustrating with setting up your business entity and issues with your restaurant, so you must be making sure all the proper documentation careful when hiring staff. All states have laws is filed and signed by all owners. An acrelating to employee wages and overtime, countant can help you navigate state and hours, and general working conditions. These IRS regulations to determine if one busilaws, specifically those relating to employee ness structure has a more advantageous wages, are why many fast-food restaurants tax status for you. are beginning to have customers use touch-

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screen computers for ordering, instead of paying higher wages for employees. When working with employees, you must consult with your attorney and an insurance agent. The Affordable Care Act requires that you, as the employer, offer health benefits if you have more than 50 full-time workers or pay high penalties. In addition to these concerns, you also need to ask each employee before you hire them whether they have any non-competition clauses with a former employer. If you hire an employee who is restricted by a non-competition agreement with a former employer, you could be liable to the former employer if they bring a lawsuit. UNIFORMITY Because your restaurant is part of a franchise system, you will be required to follow the franchisor’s systems and procedures. This means that you will need to build your restaurant to the franchisor’s design standards. You will also need to use the franchisor’s menu, suppliers, recipes, etc. These systems and procedures imposed by the franchisor are designed to give customers

a similar experience, no matter which franchised location they visit. CUSTOMER DATA SECURITY Everyday there are stories about a restaurant or retail chain with a data breach. This can be devastating for customers who have their credit-card information stolen, and it can cripple any business who is the victim of this breach. When speaking with the franchisor and your credit-card processing vendors, you need to understand PCI compliance and ensure your point-of-sale system is safe with proper encryption. Additionally, you would benefit from talking with your insurance agent about additional insurance coverage for data breaches. 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 980-202-5679. Visit www.barberpowerlaw.com.

September 2018 29

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

Exploring Franchise Opportunities: Get the Answers YOU Need!

otential franchise buyers know before making a final decision, they need to obtain information from other franchisees and also, their possible franchisors. But what information do they need to get? Generally, I recommend using the Franchise Disclosure Document (FDD) as a guide. Read through it and ask a potential franchisor very specific questions about each item listed. It’s a can’t-miss road map. Here’s a start.

ing of the range of expenses—and why they are what they are. Inquire about assistance for everything from advertising to site selection to your grand opening. What is the temperament of the franchise group nationally and within your market? Of course, I recommend speaking with franchisees, too. Make sure to ask them about costs, problems, profits, and trends. Discuss competition with both the franchisor and franchisees.

WHAT IS THE HISTORY OF THE FRANCHISE CONCEPT? What is the founder’s vision? Who is on the executive and support teams? What experience do they bring to the table? If a franchisor hasn’t worked at a location, how has he learned about daily operations? Has he owned a business before? It’s important to understand how these individuals relate to franchisees.

ASK ABOUT EXIT STRATEGIES. At some point, you may want to exit the system or you may have to exit. If you have to exit, is there support if you’re in trouble? Ask about transfer fees and the process of selling your business. Understand the franchisor’s approval process. What happened to each franchisee listed under terminated or closed franchises on the FDD? What happened to their locations? Have they continued operation under a new franchisee or corporate? Is the location still available? Ask yourself if you would consider a long-term relationship with this brand

HOW HIGH COULD EXPENSES GO? All expenses should be clearly defined. It’s imperative to gain a complete understand30

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“Inquire about assistance for

everything from advertising to site selection to your grand opening.” and its leadership. After this process is complete and you’ve reviewed your notes, trust your gut instinct! Take your time and think things through until you’re 100 percent sure of your decision. Make sure you have all your support mechanisms in place, including friends and family. Do not kid yourself. Do not lie to yourself. And, do not justify any negatives. Being honest with yourself will help you make the right decision. 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 or visit www.franchisefoundry.com

September 2018 31

en·tre·pre·neur änn-trə-p(r)ə-'nər\noun

1. One who manages and assumes the risks of a business 2. A “construction brat” turns CEO with a fresh concept

By Jill Abrahamsen ooks can be deceiving. That’s certainly the case for Colleen

Pyle. At first glance, this petite blonde doesn’t seem like the type who would be skilled at jobs like painting or laying tile. In fact, most people wouldn’t guess that she owns a commercial handyman services company and franchised it. But after talking to her for a few minutes, it all becomes clear. Passionate about her business, the CEO and founder of Just Let Me Do It Commercial Services grew up as a “Construction Brat.” Pyle spent her childhood helping her dad with projects and remodels. “I would hand him bricks, help him lay tile, whatever he needed,” she remembers fondly. “I have always had that ‘just let me do it’ attitude because I felt that I could handle most tasks. Watching my dad build with his hands, and later marrying a general contractor, I learned so much about the business. It’s almost second nature to me,” she adds. Pyle launched the business back in 1997 with her husband, Curtis. The pair grew it to six corporate locations and recently decided to restructure and offer franchise opportunities. “The beauty of this business is that franchisees walk right into established relationships and are placed into a preferred status. This

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allows franchisees to get to work quickly with jobs waiting for them on day-one. “Our franchise partners don’t have to worry about marketing and advertising,” says Pyle. “Essentially it’s a turnkey business. We take care of the day-to-day business: answering phones, emails and tracking jobs from start to finish. We have state-ofthe-art software that helps us stay at the top of our game,” Pyle adds. Pyle draws on her background and eye for detail in order to keep customers happy. “I have incorporated a ‘Strive and Thrive’ attitude within the business and our customers trust that we’ll get the job done,” she says. Her client base includes large chain stores, major retailers, big box stores, restaurants, and convenience stores. “We have strong relationships with our partners and have become their go-to preferred vendor nationally,” Pyle says. Pyle takes pride in understanding clients needs. She knows the importance of customer service, on-time response, daily status and timely billing. Pyle also

“Our franchisees have jobs waiting for them on day-one of opening for business.”

understands that most contractors, like her husband Curtis, enjoy doing the physical work, but not necessarily the administrative tasks. So Pyle set up the franchise with that in mind. Corporate handles all the backoffice tasks, allowing franchisees to focus on the work at hand. “It’s a win-win for everyone,” she adds. Offering franchise opportunities since 2018, Pyle runs the franchising end of the business and Curtis runs operations. They’re certain that their business concept

is something special. “There’s nothing like it out there. The start-up is low and the margins are high. Plus there’s a huge demand for the services we offer.” Pyle says. The pair attributes their success to the culture they created. “We foster a fun atmosphere where people love coming to work,” Pyle says. We treat our employees like family and our core value is “we care.” For more information, please contact colleen@justletmedoit.com or visit www.justletmedoit.com

September 2018 33

Find Career

BLISS by Alesia Visconti

You might not associate “career bliss” with the franchise industry, but believe it or not, many professionals do. Who can blame them? Corporate America isn’t the security blanket that it once was. The options for many seem minimal and

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depressing. Nowadays, companies want younger employees and professionals in their forties are labeled “old.” Military veterans struggle to land jobs after their service is over, and it’s hard for stay-athome moms to find work after taking time off for their families. Owning a franchise is like a beacon of light, a professional safe harbor. Still, making a career transition—especially one from Corporate America to business ownership—is never easy. Simultaneous excitement and fear is common. The more certain you are that you’re moving ahead with the right business, the easier the transition will be. For starters, explore many brands. Sure, everyone wants a business that’s prosperous and turns the right numbers. But

think beyond that. How do you want to spend your time on a daily basis? What core values do you want the franchise brand to hold? Does the brand culture align with your lifestyle? Next, think about the day-to-day. Do you want to have staff to manage, or do you prefer to work solo? It’s important to know where you stand when you’re looking at brands. Do you want to be part of a trendy, sexy industry, or is something more predictable appealing? Make brand decisions based on what’s right for you, not because your friend’s brother-in-law’s cousin owns one. Knowing the answers to these questions will ultimately help determine which brand is right for you, and then you may have your own career bliss.

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 is passionate about helping others achieve their dreams of business ownership through franchising. A die-hard science fiction/fantasy fan, 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

September 2018 35

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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

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www.USFranchiseShows.com September 2018 37

COVER STORY

food FRESH, FUN

FRANCHISES

Fresh and fun lead the charge in food franchising

By Jill Abrahamsen

ood franchising is not the gimmicky, burgers-and-fries on-the-fly scene that it used to be. Today, customers want healthy and sophisticated foods, no matter where they are or how much time they have. Diners, especially trendsetting millennials, aren’t looking simply for meals—they want experiences. Franchisors hear these demands—and they’re answering them in a big way. Here, we talk to food franchisors who are disrupting the market, challenging us to rethink a brand encounter. Take the Waffle Experience (page 39), for example. Putting a creative—and sophisticated—twist on an old favorite, the innovators behind this popular brand know how to “wow” customers and keep them coming back for more. Then there’s Mamoun’s Falafel (page 42). The iconic New York City Middle Eastern restaurant has had a cult-like following since it opened in the 1970s. Today, it offers franchise opportunities. Burgers and tacos once ruled fast food, but now we have poké, acai bowls, and poutine moving in. Never heard of these foods? Read on. Maybe one will be the mainstay of your next business.

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THE WAFFLE EXPERIENCE Jeffery Belaski and Mike Donoho WHILE SERVING IN THE MARINES TOGETHER, JEFFERY BELASKI and Michael Donoho would talk about opening a restaurant together one day. They wanted to serve food made from the freshest ingredients in a fun and innovative way. Donoho, a world-class chef, grew up helping his parents work in their expansive family garden. An avid fisherman and hunter, he had an appreciation for fresh food. Belaski had the drive, business acumen, and creative mind to make things happen. Reunited outside of the barracks, the duo took a leap of faith and launched The Waffle Experience (TWE) in 2014. Made from locally sourced natural and organic ingredients, the flavor-infused waffles offer the perfect storm of innovation and fresh. It didn’t take long before the restaurant was named a “must-try” on continued on page 40

September 2018 39

COVER STORY

Pork belly provided by Jones Dairy Farm

THE WAFFLE EXPERIENCE (continued) MSN’s prestigious list, 50 Best Things to Eat Before You Die. TWE quickly became a destination restaurant with long lines of customers wanting in. Impressive as that is, the amazing part is that the first location was situated in a industrial park. “There was no foot traffic to bring people in. We didn’t advertise. It was all word of mouth. People loved our food and started posting pictures all over social media. It went viral,” Belaski says. The restaurant serves waffles like you’ve never had before. “This is not watered-down pancake mix. Our waffles are made from brioche bread dough and infused with herbs and other unexpected additions like fruit and meats,” says Belaski. “Praise the Lard” (above, left) is made with house-braised pork belly, cage-free eggs, arugula, roasted tomato, ricotta, cracked pepper agave syrup, on top of a lardon-studded herb waffle. The Bloody Mary Experience (right), more like a meal in a glass, turns heads whenever it’s served. Now offering franchise opportunities, the founders believe The Waffle Experience will do well just about anywhere. “Our first location made a killing in an industrial park, so imagine how it will do in an area with foot traffic,” asks Donoho. “This is a great lifestyle business, with family-friendly hours, a unique concept, and a proven model,” says Belaski. “We are looking for franchise partners who share our passion and excitement for this business. This partnership will be the foundation of our success.” For more information, visit www.thewaffleexperience.com

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â&#x20AC;&#x153;People loved

our food and started posting pictures all over social media. It went viral.â&#x20AC;? Pork belly provided by Jones Dairy Farm

September 2018 41

COVER STORY

MAMOUN’S FALAFEL The Chater Brothers

ICONIC IS THE BEST WORD TO SUM UP MAMOUN’S FALAFEL. WITH A history that dates back to the 1970s, the Middle Eastern restaurant’s first location in Greenwich Village is considered a New York City landmark. Working in a tiny space of just 200 square feet, the original restaurant is still booming today with long lines of customers waiting to get a taste of their famous falafel, shawarma (lamb cooked on a rotisserie), chicken kabobs, and a host of other Middle Eastern fare. How did they get this hardcore following? “With passion and a commitment to excellence,” says Hussam Chater, the youngest of founder Mamoun Chater’s four sons. “My father put his heart and soul into this business. He built Mamoun’s during challenging times,” he says. “Whatever he touched, turned to gold. My father started out as a poor immigrant from Syria and built a legacy.” A family business, the four brothers were involved in the first restaurant from the time they were little kids. “We prepped food, skewered chicken, did whatever was needed, and gradually began working the counter and serving customers—it was part of our upbringing. My mother also helped with the business while raising me and my brothers,” Chater says. “The restaurant grew organically and we are very proud of the fact that the original

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“Our goal is to protect and

carry on our father’s legacy.”

Located on MacDougal Street in New York City’s Greenwich Village, the original Mamoun’s Falafel still draws long lines today, (opposite page). Mamoun’s four sons carry on his legacy with hands-on operation of the recently launched franchise. The Chater brothers from left to right: Galal, Nedal, Kinan, and Hussam, (above left). Mamoun Chater standing in front of the original New York City location, circa 1971, (above right).

location is still going strong after more than 45 years. We started adding locations in 2004, first in Manhattan and then in New Jersey with larger spaces, but with the same recipes. The menu hasn’t changed. It’s what made us successful through all these years, but we are constantly working on ways to improve the quality of the food.” The four brothers now run the business and considered franchising for a long time before they started offering opportunities in 2015. “We knew the business and brand worked well with our family running it, but we were concerned about the control and consistency as we grew through franchising. We wanted all the food in every location to be the same as the original,” he adds. The answer? They built a centralized commissary where they control all the ingredients and preparation. “This is not only great for consistency, but it makes running the restaurant simpler for franchisees,” he adds. The brothers are excited to grow, but they are looking for investors who appreciate their history and commitment to excellence. “Our goal is to protect and carry on our father’s legacy,” says Chater. For more information, contact www.mamouns.com

September 2018 43

COVER STORY

CLEAN JUICE

Landon and Kat Eckles

LANDON AND KAT ECKLES NEVER SET OUT TO RUN A MULTI-MILLIONdollar franchise business. In fact, launching Clean Juice was a byproduct of wanting to spend more time with family and a desire to live a healthier lifestyle. Early in their marriage, Landon worked long hours and often had to travel for weeks at a time. He hated being away from his growing family. At the same time, Kat started experimenting with juicing and became very passionate about its health benefits. The couple had always talked about being in business for themselves and soon realized that Kat’s passion for juicing could be the answer. Together in 2015, they opened the first Clean Juice. The entire menu is certified organic and items include juices, acai bowls, smoothies, and healthy treats like almond butter and avocado toasts. There is also a cold-pressed juice cleanse regimen, which comes bottled and consists of six specific juices for a whole day of cleansing. “Our juices are organic and raw, not processed. They are cold-pressed on site at each location.” Landon adds. Using her kids as guinea pigs, Kat created a menu that has something for everyone. “We figured if you can get your kids to like it, most people will, too. It doesn’t have to taste bad to be good for you,” Landon says. “We’re the only juice franchise that is USDA certified organic. It’s not just a claim we are making. Becoming certified organic is a rigorous process. All of our stores are audited biannually by a USDA approved certifier, the CCOF,” explains Landon. “Since franchise partners follow our system, they are able to open their stores with the USDA organic certification.” 44

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Franchising wasn’t in the original plan, but the couple began awarding territories in 2016. “We were getting inquiries all the time,” Landon says. But after winning the International Franchise Association’s NextGen Competition in February 2018, the growth of Clean Juice exploded. There are now 43 open locations, with another 75 in development. “We field about 1,000 leads for franchising a quarter. We want to partner with people who share our ideals and passion for this business,” Landon says. These days, the Eckles and their five children enjoy spending lots of time together. “Since we opened our doors, the kids love hanging around our stores,” says Landon. “We try to integrate our work family with our home family, and it’s been great.” For more information, visit www.cleanjuice.com

September 2018 45

COVER STORY

THE TOASTED YOLK CAFE Chris Milton and Mathew DeMott

WHO SAYS COCKTAILS AND ENTERTAINMENT HAVE TO BE LIMITED TO THE evening hours? Not Toasted Yolk founders Chris Milton and Mathew DeMott. In fact, serving inventive cocktails along with a decadent breakfast and lunch, Toasted Yolk’s motto is “It’s never too early to get toasted.” “We saw a need in the market for a fun, upbeat restaurant that serves both breakfast and lunch. We didn’t want to be ‘the rooster on the wall’ kind of place,” says Milton. The entrepreneurial duo had experience in the restaurant business and knew what worked and what didn’t. Serving cocktails early in the day was a hit right off the bat, with two to three people deep standing at the bar,” Milton says. “We wanted to make breakfast and lunch more like a social event.” With creative dishes and Texas-sized portions, the first Conroe, Texas, location was an immediate hit when it opened in 2010. “Our menu is fun and inviting. Folks want to hang around and relax here,” Milton adds. Menu items include “The Double Decker,” an omelet stuffed with sausage, bacon, ham, tomatoes, and more; homemade churro donuts; a variety of mimosas; and a full coffee bar. There’s also a full lunch menu of soups, sandwiches, and salads. Catering offers another revenue stream for the business. With six corporate locations booming, the pair started offering franchise opportunities in 2016, and they’re well on the way to changing how the world serves food before 3 p.m. The pair attributes their success to a unique experience and happy employees. “We make everything in-house and source quality ingredients. Our managers enjoy the best hours in the business. We are able to recruit quality employees and retain them,” Milton says. For more information, visit www.thetoastedyolk.com

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TAKE YOUR BUSINESS TO GO • Unique In-Demand Business • Low Investment • Fast Startup • Mobile Business • Hands-On Training • Recurring Revenue Streams • Continued Marketing Support

Franchise Opportunities Available John@theshoeshineguys.com • (734) 645-2286 • www.theshoeshineguys.com

The ShoeShineGuys.com

September 2018 47

COVER STORY

MAHANA POKÉ

Dave Wood

BEING A FREQUENT VISITOR OF THE ALOHA STATE, DAVE WOOD FELL IN love with poké—a casual dish that includes chunks of raw, marinated fish tossed over rice and topped with vegetables and umami-packed sauces. Having had a successful career in the restaurant world and still not ready to retire, Wood recognized an opportunity to roll out something new and exciting. So, he teamed up with friend and business partner John Thomas and created Mahana Poké—and brought a piece of Hawaii back to the mainland U.S. Although poké is the thrust of the business, Mahana offers much more. If you don’t care for fish, there are bowls starring meats. The “Spicy Sesame Bowl,” for example, includes grilled chicken, portobello mushroom, cucumber, and sweet pepper topped with sesame soy and spicy mayo, garnished with scallions and sesame seeds. If nothing on the menu appeals to you, try a “make-your-own bowl,” and pick your protein, veggies, and toppings. “Options really resonate with people, especially the under-40 crowd,” Wood says. The menu also includes a variety of sushi rolls and ways to customize those as well. Wood and Thomas are very proud of their management team. “Although Mahana is new, our executive team has more than 100 years of restaurant experience across wellknown brands,” says Wood. “Franchisees have a great opportunity to be on the ground floor of something big with the benefit of experience and support.” For more information, visit www.mahanapoke.com

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September 2018 49

COVER STORY

SMOKE’S POUTINERIE

Ryan Smolkin

RYAN SMOLKIN LIVES HIS BRAND. THE CEO AND FOUNDER OF SMOKE’S Poutinerie never goes out without his Canadian gear. “Gotta wear the hat, shades, and everything in plaid, even undies,” says Smolkin. You can feel the excitement he has for his business within seconds of talking with him. “Gotta hop on the rock ’n’ roll gravy train,” he says about the loaded fries his restaurant serves as a main dish, which are decadent, satisfying, and far from ordinary. Smolkin created a new way to serve up a classic Canadian side dish, poutine. Traditionally served as French fries topped with cheese curd and gravy, Smolkin brought the dish to a whole other level. “We created a new food category. We serve it as main dish and throw all kinds of stuff on top,” he says. The menu consists of more than 30 options, all served the same way: In paper baskets, with a base of French fries then topped off with mounds of goodies. Customers can choose among creations like the “Bacon Cheeseburger Poutine,” “Nacho Grande Poutine,” and “Jerk Chicken Poutine.” There are vegetarian options as well. This fast-casual dining experience draws huge crowds, especially with the young, downtown urban population, where people seek “hangover prevention” in the late-night hours. “We can serve up to 200 people in an hour during peak times,’’ he says. “It’s all about the experience. We keep it fun and interesting with karaoke and air guitar and poutine-eating contests,” he adds. The restaurant started in Canada and is making its way through the States and throughout the world. “Think global domination,” says Smolkin. There are multiple options for franchisees, including food court locations, non-traditional sites (which include college campuses and entertainment venues), and traditional, four-walled build-outs. Franchisees who own four-walled sites are eligible to own a mobile territory as well. For more information, visit www.smokespoutinerie.com

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“

THIS IS A LIFESTYLE

business. I can book jobs around my schedule, not the other way around. —Bill Weber, The Patch Boys® of DuPage County, IL

”

Holes in your ceiling? We can help!

www.holeshappen.com

844-99-PATCH FRANCHISE OPPORTUNITIES AVAILABLE

September 2018 51

COVER STORY

COCOA GRINDER

Abdul Elenani

ABDUL ELENANI HAS HAD AN ENTREPRENEURIAL SPIRIT SINCE HE WAS A kid. Selling candy to his friends in grammar school and buying and selling cars in high school, Elenani always had hustle. “I hate lazy people,” he says. The oldest son in a family of eight kids, Elenani’s father always called him, “the man of the house.” “I think that’s what gave me my work ethic. My dad was an immigrant and worked so hard, and I wanted to be like him,” he says. Elenani’s father owned several Dunkin’ Donuts and Chock full o’Nuts locations, so Elenani got a taste for business ownership—and for coffee. No surprise that when Elenani went into business for himself, coffee was part of the plan. He describes his cafe, Cocoa Grinder, as “Starbucks on Steroids.” “Cocoa is for sweetness and grinder is for the grind of life,” Elenani says. “We roast our own coffee on-site. It’s top-notch,” he says. People told Elenani he was crazy for opening his first location in the ethnic neighborhood of Bay Ridge Brooklyn. “People advised me against it, but I knew it would work. Everyone likes a good cup of coffee and healthful foods. We were an immediate success and attracted a diverse customer base—moms with toddlers, business people, students, you name it,” he adds. Cocoa Grinder offers the ultimate in “grab and go.” Beside the high-quality coffee, there’s a full juice bar and an extensive menu of wholesome foods. “Our first location was only 300 square feet, but we quickly grew out of it and changed the model to more like 1,200. Build-outs are fairly simple, and there is an added bonus for franchisees,” he says. Elenani also happens to be a trained architect and civil engineer, and he also owns a construction company (did we mention that he’s not lazy?), so franchisees get construction work for a fraction of the usual price. With nine successful corporate locations in place, Elenani started offering franchise opportunities in 2017. “This is a great business in a growing segment,” he says enthusiastically. “The coffee and health-food industries are huge, and we have both. It’s a win-win.” For more information, visit www.cocoagrindernyc.com

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“

SUPPORT IS TREMENDOUS.

If something isn’t working, corporate fixes it. Simple as that. —Adam Maher, The Patch Boys® of Salt Lake City, Utah

”

Holes in your ceiling? We can help!

www.holeshappen.com

844-99-PATCH FRANCHISE OPPORTUNITIES AVAILABLE

September 2018 53

CHEW ON THIS Hungry for a new opportunity? Dive into the sumptuous world of food franchises.

By Lisa Welko

rom French pastries to chicken teriyaki to French fries beneath golden arches, food franchises are popular and here to stay. They account for 36 percent of all franchise establishments and 48 percent of the annual financial output of the U.S. franchise industry, according to the 2018 Franchise Direct Food Franchise Report. The industry promises growth, because everyone eats. According to Statista, 20 percent of Americans visit a quick-service restaurant at least once a week and 72 percent visit at lunch. Food franchises can be some of the most challenging franchises to build, but also some of the most rewarding. A well-known food franchise has built-in product demand and recognition, proven success, and marketing power. While fast-food franchises are estimated to make up 25 percent of franchises in the country, they are not the only entrĂŠe on the menu. You can also consider coffee, smoothie, and juice franchises; full-service franchises; pizza franchises; corporate catering; and vending-machine franchises, to name a few. And all have growth potential, which weâ&#x20AC;&#x2122;ve outlined here. 54

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» »

Full-Service Franchises: This category includes casual family eateries and upscale restaurants—think of restaurants like The Melting Pot or Steak ’n Shake. Food is usually eaten on-site, although delivery and takeout also may be available. The full-service restaurant industry has experienced steady growth over the past five years, according to IBISWorld. The fine-dining segment has done especially well due to an increase in the number of wealthy consumers and a growing corporate sector.

Fast-Food Franchises: Also known as quickservice restaurants (QSR), these franchises serve food quickly, whether inside the building, in your car, or through delivery. In the U.S., the fast-food industry is worth about $198.9 billion, according to Statista. By 2020, growth is expected to exceed $223 billion.

Food Trucks: The modern food truck craze started around 2008 in Los Angeles and has been spreading across the country ever since. Unlike traditional restaurant owners, food truck franchisees can drive around and go where the customers are. From sporting events and concerts to festivals, food trucks are able to get to hungry crowds. And they offer much more than burgers and tacos. Options include high-end lobster rolls, gourmet grilled cheese, and a host of creative and international cuisine.

Coffee Franchises: Next to water, coffee is the most consumed beverage in the country, with no signs of slowing down—must be all that caffeine. According to Research and Markets, the U.S. coffee franchise market is expected to reach $13.96 billion by 2025. These franchises also rely on baked goods or sandwiches as other sources of revenue. Who doesn’t love multiple income streams? 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

September 2018 55

Food: The Heart and Soul of Franchising T

by Christopher Connor

he food industry is what most people think of when they hear the term “franchise.” And that’s no coincidence. There are so many success stories in the food category that people often credit food franchising as an example of how well the franchise model can work. Legends have been born in the food franchise market in Ray Kroc, Colonel Sanders, Jimmy John Liautaud, as well as many others. It’s one of the few franchise systems, where franchisees can become multi-unit owners fairly quickly. Franchising has helped the food-service business enormously. This industry is one of the more difficult businesses to operate successfully thanks to the many moving

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parts: lots of staffing, face-to-face customer interactions, the sensitivity of both food and money. The integration of the franchise model seemed to do two things for the industry: First, it pushed the restaurateurs and entrepreneurs to streamline their business models, operating systems, and supply logistics to allow for scale. Secondly, franchising allowed food-service businesses to leverage the benefits of franchising to grow their brand into new markets and create scale. Franchising took one of the most unscalable businesses and turned it into a platform that could duplicate—effectively leverage buying discounts and compete with much larger organizations

thanks to franchise investors. But food franchising hasn’t always worked. In fact, there are many brands that have franchised without having the model well defined or the systems in place to take the business effectively to franchisees. Others had leadership that handicapped growth. With the star power of brands like McDonald’s, Subway, and Pizza Hut, it became easy to see how others made the mistake of franchising their businesses too early, or launching without having a business model that made sense. All Star Café, which had elite celebrity investors such as Ken Griffey Jr., Joe Montana, and Shaquille O’Neal all had short lifespans, and yet all seemed like incredible opportunities. Quiznos, which has one of the best sandwiches on the market and an incredible track record in terms of selling franchises, turned out to be a terrible collapse of a franchise brand.

COMMON ATTRIBUTES Fortunately, there have been more good versions of food franchises than bad and with the right due diligence. At Franchise Marketing Systems, we’ve noticed that good food franchises share some common traits: Leadership of a food-service brand should be focused on operational success and on unit-level economics. Good franchise systems often have an operational eccentric leader. If you think about scenarios from the movie “The Founder,” you see depictions of owner Ray Kroc walking through various McDonald’s parking lots, picking up trash as he inspects individual franchisees’ businesses. He was incredibly focused on the details and the extreme minutia of what made a McDonald’s a successful restaurant. Food franchises that stand the test of time have a leadership team who fights every day for the integrity of the operating unit and the brand itself. Jimmy

John’s, for example, only allows franchisees to show the logo on a black background, and the company is enormously critical of anyone or anything that goes against the rules in the brand book. Successful food franchises have a strong technology platform in place, which streamlines operations; great inventory management systems, supply chain logistics, and a marketing system that can be duplicated efficiently. Food service can be a complicated business and complicated doesn’t duplicate well. Good technology, great documentation, and proper vendor arrangements make a franchise system possible and effective, and ultimately allow franchisees to be successful as part of the network. Third, food service, like any market segment, goes through trends and shifts in consumer demand for different menu types, service structures, and other aspects of the business. Some food-service franchises have withstood the test of time and seem to offer products that just never go out of favor, while others offer something very niche that may have a shorter lifespan. Today, a franchise investor should be concerned with what millennials are eating and make sure that a potential food-service investment is relevant to them. The food-service segment of franchising can be one of the most lucrative in the entire franchise industry. Many franchisees have been able to duplicate their success with multiple locations within the same franchise brand. It’s a unique market segment in that way—franchisees have been able to become multi-unit owners successfully in large volume. Find the right one, and you can grow with the franchise in a big way. Conner leads the Franchise Marketing System’s team in business consulting and franchise development projects. For more information, contact Chris.Conner@FMSFranchise.com

September 2018 57

THE SECRET TO

Food Franchise

SUCCESS (Hint: Focus on training and merchandising.)

By Janice Charles Food franchises are a dime a dozen. Many claim to provide the best tasting food, the best service, and the best price. The question then becomes about execution and profitability. Who manages these elements best? Companies that focus on two key elements: training and merchandising. WATCH AND LEARN Disney is a great example of a company that does well in the food business. One reason? The Mouse and his pals know how to train. Training is one of the most important facets of a food business. If your staff is not trained, you will struggle with high-turnover, no-shows, and customer complaints. When evaluating a training program, first consider how the company trains you. After all, training starts at the top, and you can model efficient training for your staff. Perform tasks correctly and avoid cutting corners. Everything you do will be modeled by your staff. Next, consider accountability. How does your franchisor hold you accountable for your responsibilities? Can you transfer those systems to your staff? Is your training detailed enough so that you can deliver the level of service the brand promises? Do these details answer your questions—and 58

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do they provide solutions to situations that an employee may encounter? Training that covers specific—and common—situations is important for your business. Training may seem like a no-brainer, but how often have you visited a restaurant and found a staff member who had poor customer service skills or didn’t seem to know the business? Think about how that affected your opinion of that restaurant. When customers have low opinions of restaurants, it affects potential business. You’re less likely to tell your friends about an experience, and of course, less likely to go back yourself. SEND A MESSAGE Merchandising is crucial to both top- and bottom-line sales. Are prices and descriptions visible to customers? Merchandising messages should trigger a customer response of “I want to buy that, so I can feel like that.” For example, when we wanted to sell more ice cream quarts at Baskin-Robbins, I took 50 quarts and hung them (empty) from the ceiling. We tripled our quart sales the first week, hence driving top-line and ultimately bottom-line sales. People buy what you tell them to buy. When looking at your menu board, customers should see bundled products with

How Can I Help?

the best food-cost options available. Think of McDonald’s Happy Meals, for example. If you have a specialty or impulse food franchise, bundle with soft drinks. Your goal is to get customers to buy more than they originally planned and to spend as you have planned.

Janice Charles is a 38-year veteran in the franchising and food industry. She was raised in the McDonald’s system with her family where she learned all aspects of the business. Janice has been a franchisee and worked for multiple franchisors. Email her at Janice@TheFranchiseConsultingCompany.com

September 2018 59

PARTNERING UP What to know when you start a business together.

By Stephen Winterrowd

oing into business with a partner can be greatâ&#x20AC;&#x201D;if you have the right other half and know the expectations. What kinds of things should you think about when you set up your arrangement? Here are a few tips.

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“Just because you have fun

together on the golf course doesn’t mean you’ll be a dream team in business.” Just because you have fun together on the golf course doesn’t mean you’ll be a dream team in business. When you date someone you try to determine if she would be a great partner in life and you need to do the same thing in business. Do you complement each other? Does one have food experience and one have back-office skills. If the business is employee heavy, will you both be able to manage staff? Think about both your temperaments and your skillsets. DEFINE YOUR PARTNERSHIP. Often I hear about failed partnerships, because one partner felt like he did all the work and the other just collected his 50 percent. The best way to avoid this is to create a buy-sell agreement, or partnership agreement for the corporation that purchases the franchise. If details aren’t laid out in the agreement—like who is responsible for what—then there may be no recourse for a partner who does all the work. The agreement should also include the terms of your partnership. Is it a 50/50 partnership, or 60/40? Who will have final say on important decisions? You want to be sure you can work through any issues that may arise in the business. PLAN FOR THE UNEXPECTED. A buy-sell agreement should outline—and resolve—any scenario that could possibly happen during the partnership. When my partner and I drafted our buy-sell agreement, the first item we addressed was death. What happens to the deceased owner’s percentage? Are you willing to work with your partner’s spouse and allow her to maintain the ownership? My partner was single at the start of our business, and I didn’t know who he might marry in the future and whether or not we would get

along. So we created a clause for the surviving owner to buy out the estate, regardless of the spouse’s wishes. We also addressed participation in the business, and what would happen if one of us decided to stop working. We had a 50/50 ownership scenario: I managed the sales while he ran the back office. PROTECT EACH OTHER WITH LIFE INSURANCE. One thing we missed in our agreement, as many partners do, was funding for unexpected scenarios. For instance, if a partner dies, how is the buyout funded? Without a life insurance policy on the owner with the business as the beneficiary, then you may have to use cash from operations or sell assets to pay for the buyout. What if your home is the only money you can access at the time and you have to use that? The surviving spouse is entitled to the benefits of the partner, and you may have to keep her around if you can’t buy her out. Fortunately, there are life-insurance policies that can be purchased on the owners, but a buyout can happen other ways, too. Consult your attorney and your accountant to determine the best solution for your partnership. During his many years as a franchisee, Winterrowd has experienced a lot in the franchise world, from the struggles of startup, buying out a partner, expansion, to selling the business. As an independent consultant with The Franchise Consulting Company, Winterrowd uses his experiences and training to partner with clients to help them find the franchise opportunity that best fit their goals. Contact him at Stephen@TheFranchiseConsultingCompany.com or call 310-773-7662.

September 2018 61

How to Succeed in Franchising

FINANCIALLY By Janice Charles

All franchisees want to know the same thing: How do I make money? The trick is to manage the financial part of the business carefully, and that means before it gets started. A pro forma profit-and-loss statement—a document that lists your projected financial expectations—is a great way to begin. Be sure to have a completed pro forma statement prior to training. The document, which gives you a month-by-month breakdown of your projected earnings and expenses, is an important part of your business plan. Knowing what to expect can help you stay on track in terms of spending, and it can signal problems early on, before they spin out of control. How do you create a pro forma P&L? Here, we offer a few pointers. START WITH THE FRANCHISE DISCLOSURE DOCUMENT Obviously, your business projections must have some merit. So what do you base your numbers on? Start with the Franchise Disclosure Document (FDD). Item 19 in the FDD, “Financial Performance Representations,” provides a wealth of financial information that you can use to complete your pro forma statement. There are several pro forma templates available to get you started, but here are some general categories to keep in mind. Gross Income: What income do you anticipate? Look at several models with different income levels. Sales Tax: Know what your sales tax percentages are and subtract accordingly to estimate your net income. Cost of Goods Sold: How much will the 62

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goods coming in your back door cost prior to selling them? Gross Profit: This is the money you make after you deduct the costs associated with doing business. The general formula for gross profit is: Revenue minus cost of goods sold. Expenses: This is the cost of line items needed to keep your business going. They may include: advertising costs, bank charges, credit card fees, payroll taxes, etc. TALK TO FRANCHISEES Once you’ve listed your projections in a pro forma P&L, you want to make sure they are correct. How do you know? Ask other franchisees. Call many and ask specific questions to see if your pro forma statement is an accurate representation of your potential business. Next, review your pro forma with your franchise consultant or franchisor to make sure you’ve listed the appropriate categories and that there’s nothing you missed. Keep in mind a franchisor won’t be able to provide advice or actual numbers, because the Federal Trade Commission mandates that they don’t provide earnings claims. The franchisor is not trying to be evasive, he’s simply following the law. That’s why it’s so important to call franchisees—they can provide actual information from their businesses. Janice Charles is a 38-year veteran in the franchising and food industry. She was raised in the McDonald’s system with her family where she learned all aspects of the business. Janice has been a franchisee and worked for multiple franchisors. For more information, contact Janice at Janice@TheFranchiseConsultingCompany.com

“Knowing what to expect can help you stay on track in terms of spending.”

September 2018 63

CREATING A BUZZ

Doing what comes naturally is the key to success for this entrepreneurial marketer.

Michelle Hummel is ubiquitous on social media. Fans can count on see-

ing her regular posts and blogs, offering advice on web strategy and social media marketing. Hummel and her team of experts at Web Strategy Plus serve local businesses and franchise networks nationwide with a “one stop

shop” full-service digital marketing agency. Here, she shares her insights on social media marketing and gives us the story behind her growing business. Please give a little history about how you started your business. In 2010 I found myself working a corporate job selling banner advertising for a local television station. Every time I would go on a sales call, customers asked if we offered services for managing Facebook and Twitter. At the time, I wasn’t sure what “social media” was about. So I decided to read every book I could find about social media. I created a WordPress website, where I blogged a quote each day called, “365 Ways to Become a Millionaire.” I created a Facebook page, posted the blog, and started to grow a following. Then I went to Mexico for my best friend’s wedding and stopped posting. When I returned I had an inbox full of messages asking “where were their daily posts?” It was then I realized the power of social media. I left my job to start a social media marketing agency. Since then, I’ve evolved Web Strategy Plus to become a full-service agency offering Web Design, SEO, PPC, Mobile App Development while also specializing in Franchise Marketing. Along the way, I developed 22 Social Media Enthusiasts chapters 64

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Nationwide in every major city where I travel and teach the latest techniques in digital marketing. I’ve since written three books on social media and founded Web Media University where I offer Social Media Training and Certification. I was also lucky enough to be recently nominated for the Woman-Owned Business of the Year! What does Web Strategy Plus do for franchisees and franchisors? Our business is to grow your business and we do so in a variety of ways. For franchisees and franchisors, we have two services to help them stay ahead of the game. Franchisor Lead Development: Bringing new franchise owners into your organization begins with identifying the right prospects. Even though you may know exactly what your ideal owner looks like, connecting with them can be a significant challenge. Using social media, search engine optimization, and advertising strategies, we can help increase the number of targeted leads your operation receives in a cost-effective manner. Franchisee Local Marketing: In addition to

Hummel (2nd from left) hangs out with a few members of her growing team. Web Strategy Plus now has a crew of experts with 15 years experience in franchising. Vice President of Operations, Greg Woryk, (far left) received his CFE (Certified Franchise Executive) certification in 2009.

helping franchisors build a strong national brand, we also provide our marketing services to individual local franchise locations. By analyzing a franchisee’s exact market, we help local owners figure out the most effective ways to get in front of the right audiences. We help local companies launch social media campaigns, create websites that target their areas, write blogs that target customers, and build search engine strategies so customers find them first online—before their competitors. How important is social media for any business today? Very important. Word of mouth is becoming, “word of thumb.” Companies that understand the power of social media and start building brand advocates now will outperform their competition. What do you view as the most influential social media platform? The most influential platform would really depend on your business needs. We put together custom social media strategies to help you reach your target audience on various social media

platforms. Our process is to dig deep and understand your unique business with our customer profile process. Once we understand who you are trying to reach, we create a custom social media posting and engagement plan to drive the right customers to your business. How important is it to post consistently? This is extremely important as the life of a Facebook post is four to six hours and a tweet only an hour. Another concern: If your last post was six months ago, customers might think you are out of business! Social media content is “right place, right time” and so, you have to be active to catch people as they are surfing. We often say, “Make me think, make me laugh, inspire me, teach me something new, and I will remember you when the time comes to buy.” Remember your customer might not need your product or service right now, but with consistent social media posts he will remember you and recommend you to friends. Contact Hummel at michelle@webstrategyplus.com or visit www.webstrategyplus.com

September 2018 65

SPECIAL SECTION: PART 2

Breaking Down

the FDD

Item 8: Restrictions on Sources of Products and Services

By Nicole Micklich

art of buying into a franchise system is accepting the notion that if you play by the rules, you get the benefits of brand awareness and franchisor support. Item 8 of the FDD discusses suppliers and lays out sourcing restrictions for products and materials, which is especially important in food-based concepts. Item 8 can be very revealing, so it’s important to understand. The franchisor may negotiate arrangements with approved vendors, and these arrangements may result in some franchisees paying more for certain items than if they bought the same items elsewhere. For example, a franchisor may designate only one approved supplier for cleaning products. The franchisor’s arrangement with the supplier results in advertising contributions to the franchisor, which the franchisor can allocate to any market. This arrangement obviously works well for the franchisor—but it may have seemingly little benefit for a franchisee. A franchisee, in a market that does not receive those advertising dollars, might prefer a brand of cleanser that costs half the price of the approved brand. But using a different product can put the franchisee out of compliance. And, as a franchisee, you stand to benefit from the brand awareness developed by the franchisor. ITEM 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL This item should disclose any restrictions or conditions relating to what a franchisee sells. It may say, “We require you to offer and sell only those goods and services that we have approved. You must offer all goods and services we designate as required for all franchisees.” This means every franchisee must offer all the required products or services. On the other hand, Item 16 may reveal that franchisees in certain regions may offer different products, because regional preferences may vary.

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Sometimes a system has additional goods or services that are optional for qualified franchisees. Item 16 might inform that optional services can be offered by franchisees in compliance with certain obligations. For example, an auto service concept might allow qualified franchisees to offer rustproofing services to customers. Only franchisees who are in compliance and have undergone specific training required by the franchisor may be permitted to offer rustproofing services. If these kinds of optional services can lead to increased profitability, they’re worth knowing about. Item 16 should also explain whether the franchisor has the right to change the types of good or services the franchisee can sell, and if there are any restrictions on that right. FDDs often indicate that there are no limits on the franchisor’s right to add, modify, or delete products and services that franchisees are required to offer. The FDD may say, “We reserve the right to add additional required goods and services in the future and to withdraw goods and services we previously authorized.” And would add, “There are no limits on our right to do so.” However, sometimes there is a restriction or possible exceptions, and in that instance, the FDD could say, “There are no limits on our right to do

so, except that the investment required of a franchisee for equipment, supplies, and initial inventory will not exceed $15,000 per year.” Or, “There are no limits on our right to do so, but we may make limited exceptions based on special circumstances, although we are not required to do so.” When franchisors change the types of goods or services the franchisees can sell, it can be costly for franchisees. It’s important for prospective franchisees to understand the franchisor’s rights and limitations. For instance, a franchisor might disclose: “We have the right to designate additional required goods and services and to withdraw any previous approvals. There are no limitations on our right to do so.” Or, a franchisor might state: “We have the right to add additional required services. There are no limits on our right to do so, except that the investment required of a franchisee for equipment, supplies, and initial inventory will not exceed $15,000 per year.” Prospective franchisees should consider whether the franchisor can change requirements during the term of the franchise agreement. —Nicole Micklich is a franchise attorney with Garcia & Milas. Contact her at 203-773-3824 or nmicklich@garciamilas.com

September 2018 67

in·ter·view

\�in-tər- vyü \ � noun

1. A Q&A session with an industry expert 2. Telanda Sidari on investigating franchises

Telanda Sidari has 20 years of business experience with almost a decade in the franchising industry—from business ownership to sales, Sidari has first-hand experience in the emotional steps involved when buying a business. Contact Sidari at Telanda@TheFranchiseConsultingCompany.com or visit www.thefranchiseeducator.com

What are the most common misconceptions about investigating franchises?

Two things come to mind. The first is that researching or investigating a franchise is a commitment to the franchise. It’s not. An investigation is not a buying decision—it is a learning and measuring process. An investigation is a process where both sides learn about each other. This allows the client to learn everything he needs about the business model and culture, as well as to speak to current franchisees and gain a feel of the corporate culture. Buying a business is a big decision. Franchisors structure investigations so that potential franchisees get a full picture and see if the client is able to follow the structure. If an offer is made and the client chooses to accept, it should be a well-informed decision. Another common misconception is that buyers think a franchisor’s decision to sign them on as franchisees is a given. This can be detrimental to the process, because it puts pressure on the buyer to purchase throughout the whole process.

How do you guide a client through the investigation process?

We start by getting to know the client. We want to understand who he is, what he wants, and his short- and long-term goals. This way, we look at businesses that match his criteria in his area. Throughout I assist, guide, educate, and provide additional resources and tools. My goal is to make sure he understands what he is getting into, how the process works, and how to get an offer. If he accepts the offer, then I assist with the next steps.

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How do you help a client narrow his choices?

We have check-in calls to see where a client is in his investigation and to talk about any concerns. We discuss what he likes, what he doesn’t, what would he still like to learn, any surprises that have arisen, and anything else on his mind. This is about the client, so we need to keep evaluating and keep the lines of communication open. I ask clients to write down their questions, because they will think of them at random times. I encourage them not to rule out any possibilities until we’ve had at least two calls. That said, I prefer clients wait for Discovery Day—the final step of the structured investigation—to commit.

What topics do you typically discuss with a client who is considering a franchise purchase?

Generally, I want to help the client see how the business will affect his life now and in the next five years, so we discuss many things but here are a few of the most important. Budget: What can the client afford? Everyone has a different comfort level when it comes to money. I like to introduce clients to third-party financing early on, so they have a clear understanding of all the options—and the pros and cons of each. I want to make sure there are no surprises or misunderstandings. Timing: It’s important to create a plan based on the client’s needs. Is this something he wants now or in two years? How many hours a week does he work? Does he travel a lot for his job? Are there any big changes coming up in the next few months (i.e. a move, a possible layoff)? Feelings: Is a client truly motivated, or is owning a business a “maybe?” Is his spouse onboard? What does he need to make a decision? Is he good at making big decisions? Goals: What are his goals? What does he want to achieve from the business financially, personally, and professionally?

How does your background help you guide clients? First and foremost, empathy. Years ago, I was in their shoes—I made the switch from marketing at a Fortune 500 company to franchise ownership. I say upfront that this is a big decision, and I am not here to pressure anyone. But I will challenge them and push them outside their comfort zones, so they can explore all possibilities. Now in the franchise industry for 10 years, I help people navigate the process and figure out what is right for them. When a client sees a light at the end of the tunnel, I know I’ve reached my goal.

September 2018 69

spot·light

\�spät-�līt \ noun

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

Snapology® WE GET THE LINT OUT

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

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 www.snapology.com

® 70

Dryer Vent Squad®

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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

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

September 2018 71

spot·light I Know Science® 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

® 72

The Patch Boys® Exploring Today… Innovating Tomorrow! I Know Science® STEM Center and Toy Store is indispensable for families looking for top-notch experiences, offering year-round, quality STEM programs, cutting-edge toys and entertainment. From birthday parties to camps, after school programs to purchasing kids’ favorite toys, customers love a business they trust. The IKS business model is innovative and leading-edge, unique in its delivery, and profitable. As an IKS franchisee, you are connected to a network of resources including ongoing training, marketing support, toy inventory, proven curriculums, exclusive territories, and more. For more information, visit www.iknowscience.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 repairs themselves. When you join The Patch Boys® family, you become a part of an entrepreneurial community that works together to advance the brand. For more information, call 844-99-PATCH, or visit www.thepatchboys.com

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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

last word

\ last \ \ wərd \ noun

1. A stellar business concept 2. Finding a hole in the market—and filling it

Why didn’t I think of that? The qualities that make this simple concept brilliant 1. Original idea: The innovators at the Patch Boys saw a hole in the market—and in walls—and filled it. The business concept is both simple and brilliant. 2. In-demand service: Drywall holes happen to all of us at some point. Whether it’s an accident during moving, kids being kids, or damage left by plumbing or electrical jobs, holes are bound to show up in our walls from time to time. These jobs are typically too small for contractors, and annoying for most homeowners who usually don’t have the time or skill to handle the repairs themselves. 3. High volume: The average repair invoice from The Patch Boys is $520 dollars, and an average job usually takes under four hours. This means an easy sale, a quick deal, and jobs that can be completed in one day. Volume is so high that most Patch Boys franchisees have jobs waiting for them on Day One. 4. Low overhead: With a low cost-of-goods and low overhead, franchisees enjoy home-based businesses with high margins. 5. Lifestyle business: Although The Patch Boys offers a service that is in demand, franchisees can book jobs around their own schedules and enjoy work-life balance. For more information, visit www.thepatchboys.com or call 844-99-PATCH 74

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FORGING EMERGING FRANCHISE BRANDS

Guiding entrepreneurs through every step of the franchise process Have a proven business concept? We want to talk to you! A full-service franchise development company focused exclusively on start-up and emerging franchise brands

franchisefoundry.com 832.797.9851

May 2018 75

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

Franchise Dictionary Magazine—September 2018

Articles inside

Food franchising now

Last Word

Interview

Breaking Down the FDD

Creating a Buzz

How to Succeed in Franchising Financially

Partnering Up

The Secret to Food Franchise Success

Food: The Heart and Soul of Franchising

Chew on This

Cocoa Grinder

Smoke's Poutinerie

Mahana Poké

The Toasted Yolk Cafe

Clean Juice

The Waffle Experience

Mamoun's Falafel

Find Career Bliss

Entrepreneur

Franchising 101

Legal advice

Franchisee of the month

What are you afraid of?

5 SEO tips to boost your business

Stage Coach

E-turn to sender

Showtime

Older, wiser and happier