1851 Magazine

1851 VOL. 1 2013 | 1851 PROJECT.COM

Y O U N G O N E S T O W AT C H Sean Fitzgerald EVP of Franchise Development Bright Star Care

Rich Stark CEO | Stark Logic

Ashley Betzendahl Social Communications Manager Goddard Systems

Jennifer Durham VP of Franchise Development Checkers & Rally’s

CUNNING

Matt Haller VP of Public Affairs | IFA

CUNNING CURRENT

MODERN YOUTHFUL

T H E S O C I A L 1 0 0 . T H E M U LT I - U N I T M A N . B E S T C I T I E S F O R G R O W T H

Clay Neff Executive Director of Franchise Development Wireless Zone Scott Frith CEO | Lawn Doctor

Eric Little SVP of Franchise Development Right At Home

Scott Sutton VP of Franchise Development Safeguard David Peddie Head of Marketing | Mathnasium

Randy Shacka President | Two Men and a Truck

UNIQUE

GROWING INSPIRATIONAL

INNOVATIVE UNIQUE

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full circle communications connect with us today.

www.facebook.com/discovernolimit

www.twitter.com/nolimitmc

312-526-3986

www.NOLIMITAGENCY.com

for more information, visit us at

or call

WWW.CHECKERSFRANCHISING.COM 888.913.9135

FULLY LOADED FRANCHISE OPPORTUNITIES

Checkers has redefined itself to provide more revenue generating programs than ever before. Take a look inside to see some of the recent updates we’ve made to bring value to our guests and franchisees.

NEW RESTAURANT PROTOTYPE

To further enhance the guest experience, a new prototype location has been developed. The benefits of the prototype restaurant are: • Lower investment costs than previous free-standing locations • Improved drive-thru experience – fast, easy, accurate • Redesigned kitchen provides operational efficiency • Iconic brand features remain – stainless steel band, checkerboard accents, red umbrellas and black, red and white color scheme • Sales to investment ratio 1.8:1

DRIVE REVENUE THROUGH MENU AND DAYPART INNOVATION

Listening to our guests is very important. They provide valuable insight to help us develop new products and drive restaurant visits.

• • • •

Chicken Bites Classic Wings in 5 flavors Cold Creations line of treats Late Night daypart provides more opportunities to meet guest demand

ALTERNATIVE BUILDING FORMATS Varied restaurant formats can accommodate any neighborhood and provide compelling returns: • End-cap • Inline • Conversions

®

• After expansion of hours and increased marketing focus, we have seen late night sales double from 2007-2011 at Company owned restaurants

PRODUCT INNOVATION DRIVES REVENUE.

We’re giving guests more reasons to visit, more often.

FACILITY & EQUIPMENT SUPPORT EFFICIENCY.

Upholding high standards of food and service through upgrades in the latest technology.

OPERATIONS & LABOR DELIVER EXCELLENCE.

Our initiatives provide a great guest experience.

NEW RESEARCH FACILITY.

Our new research facility provides the opportunity to understand our guests’ preferences.

THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLTEE AND NOT MISLEADING. This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MN Registration #F-4351

© 2012 Checkers Drive-In, Restaurants, Inc. 4300 W. Cypress St., Ste. 600, Tampa, FL 33607

1851 PROJECT 2013

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THE YEAR AHEAD

YOUNG ONES TO WATCH

THE SOCIAL 100

By Steve Coomes Few people who know Steve Calderia would ever call him a pessimist. But as the president of the International Franchise Association, Calderia finds forecasting the franchising industry’s future for 2013 unsettling.

By Ben Heinemann We present our list of 40 young people who have the drive and determination to make big things happen in the early stages of their careers, making room for even bigger things to come down the road.

By Kate Aoueille Brands no longer talk at us. They talk with us. With that in mind, 1851 presents a comprehensive list of the top 100 franchise brands using Social Media

Image courtesy of The International Franchise Association.

PUBLISHER NICK POWILLS EDITOR IN CHIEF BEN HEINEMANN CREATIVE DIRECTOR NAKWARE HOWARD CONTRIBUTING GRAPHIC DESIGNERS ANNA AFFIAS CAITLIN VANDERKLOK

CONTRIBUTING WRITERS BROOKE WYLIE MATT DIAZ KATE AOUEILLE RALLE KARADJOV LIZA RUSH CHRIS POWILLS GREG AVDOIAN JORDY PATANO CARLY LEVISON PARI MANIKAS RYAN O’DONNELL STEVE COOMES LAUREN KAMINSKI JORDAN BRANDES

MAILING ADDRESS 730 N. Franklin, Suite 310 Chicago, IL 60654 ADVERTISING OPPORTUNITIES nick@1851project.com 312.526.3996

1851 PROJECT.COM | 2013 5

1851 PROJECT 2013

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GIVE TO GAIN

TURNING LIKES INTO LEADS

THRIVING UNDER 100K

By Liza Rush

For many franchisees, low-cost franchises prove highly successful.

By Lauren Kaminski How Toppers built a loyal fan base by listening to its customers.

1851 discusses how franchisors can expand their markets utilizing social media platforms.

By Matt Diaz

Image courtesy of The International Franchise Association

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ATHLETES IN FRANCHISING

THE MULTI-UNIT MAN

THE BEST CITIES TO OPEN A BUSINESS

By Steve Coomes

Advice from Aziz Hashim the multi-unit franchising guru.

For retired pro-sports athletes (and a few current), franchising provides opportunities for success beyond the game.

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1851 MAGAZINE INAUGURAL PRINT EDITION

By Nick Powills

By Jordy Patano 1851’s list of the top cities friendliest to new businesses.

1851 PROJECT 2013 THE BEST CONFERENCES FOR FRANCHISEES AND FRANCHISORS IN 2013 - 2014 Multi-Unit Franchising Conference March 27-29, 2013 Las Vegas

The International Franchise Expo June 20-22, 2013 New York

The IFA Public Affairs Day

This conference provides you oneon-one opportunities with some of the biggest and most powerful franchisees in the world. For franchisors, you are provided the same opportunity.

While it’s still debatable what place franchise expos will hold in development budgets, the International Franchise Expo has proven to be a step in the right direction, connecting franchisors with deals and franchisees with opportunities.

When it comes to finding a purpose and making a difference within the industry you represent, the Association’s Public Affairs Day provides franchisors and franchisees the opportunity to talk about real political issues with those who represent their home markets.

September 15-18, 2013 Washington, D.C.

International Franchise Association Convention February 22-25, 2014 New Orleans When it comes to an information download, no conference produces more content, experience and networking opportunities within the franchise community than the IFA’s Annual Convention.

1851 PROJECT.COM | 2013 7

LETTER FROM THE EDITOR

By Nick Powills

LETTER FROM THE PUBLISHER 1851 was never going to be a print magazine.

and rankings of the young ones, the Social Media

broker has rewritten the development landscape.

Perhaps I should learn a thing or two about

studs and veteran friendly businesses. We also

Media has changed, the International Franchise

using the word “never.” As you read this, you

offer great informative Webinars for prospective

Association ( IFA ) has changed. What we

can clearly see that 1851 has evolved from the

franchisees and the lead generation community.

envisioned yesterday as the best way to do things

virtual to the physical world. While I certainly

It has been productive, busy and eye opening.

has not remained the same. Yet our president

wouldn’t say this was on accident, I wouldn’t say it wasn’t on purpose either.

remains the same, as does our uncertainty.

Yet, even with those successful moments, what I envisioned last May has not remained the same.

When the publication was created in May of

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If I could never use “never” or “always,” I would be a better person. I would look at everything,

2012, my team and I saw an opportunity - an

While I may not have been in the franchise

whether it be business or life, with eyes wide

opportunity to provide a daily resource for the

community as long as others, I have used my

open. While a print publication wasn’t in the

franchise community. Most of the resources

time to observe and collect as much data as

cards 10 months ago, the high demand of our

that currently exist focus on a singular audience:

possible before distributing what I presume as

readers to uphold our vision forced us into

franchisor, franchisee, multi-unit franchisee,

best practices. Looking back at my first entrance

unplanned waters. While this issue is printed,

supplier or the prospective zee. 1851 was

into the community, I couldn’t see as clearly as I

it may be the last. I will let the evolution of best

created to provide vision and insight across all

do today. Ten years from now, I will most likely

practices determine what’s next. And, I will be

franchise audiences in a broad, yet informative

say the same thing about my views as I do today.

OK with it.

way, thus connecting the silos and bringing

The reality is “nevers “or “always” don’t work in

together the audiences to tackle both personal

business, franchising or life. Evolution, revolution,

and business growth.

exploration and rewrites are guaranteed.

Ten months later, I am pretty pleased with

Franchise portals don’t work the way they used

what has happened. We have more than 5,000

to and franchise development pros cannot snap

readers, daily content during the business week

their fingers and close deals. The franchise

1851 MAGAZINE INAUGURAL PRINT EDITION

Nick Powills Publisher

WE TEACH FRANCHISORS

HOW TO DRIVE Every franchisor with more than 100 units looks back and wishes they would have done a few things differently.

Now there is an executive consulting team that can help you and your company look forward to a successful future based on their in depth knowledge, experience and proven track record of success.

FOR MORE INFORMATION CONTACT US AT 267.767.8130

INFO@SMBFRANCHISING.COM

WWW.SMBFRANCHISING.COM

10 TIPS FOR ACHIEVING SUCCESS IN YOUR FRANCHISE

By Kate Aoueille

1.

UNDERSTAND YOUR GOALS AND OBJECTIVES “A business or franchise should be a vehicle that

have to talk to the average franchisees, longtime

disclosure document is and how to use the

franchisees, new franchisees, those doing well

information inside of it,” said Steven Corp, VP

and even those doing not so well,” said John Blair,

of Franchise Sales for Moe’s Southwest Grill.

Director of Marketing for FranNet. “You should

Regardless of the segment you are pursuing,

find out specifically why former franchisees left

the Federal Trade Commission makes every

the system,” Blair said. Understand whether

franchise company release an FDD. Read it and

the reasons were systematic problems with the

read it carefully, over and over again.

franchise or problems specific to the individual.

“By investing in your business prior to purchase, you are better prepared to enter into the model,” suggested Blair.

helps you achieve your personal goals. You need

5.

to understand what it is you want the business to do for you,” said Margie Pascetta, coach and franchise expert for The Entrepreneur’s Source.

Begin by considering the following questions -Are you looking for a business that matches your lifestyle, or builds long term wealth and equity?

3.

FOLLOW YOUR PASSIONS It is imperative that your franchise aligns with your passions. “Everyone wants to make money,

to supplement your income? Are you looking to

RECOGNIZE YOUR INVESTMENT LEVEL

invest in something that makes you feel good? Be

“Find a business that meets your investment

Checkers Drive-In Restaurants. If you are not

honest with yourself and answer these questions

level,” said Steve Beagleman, President and CEO

truly committed and passionate about your

as truthfully as you can. These answers will

of SMB Franchise Advisors. Many prospects

business, it will ultimately fail.

help you truly understand which franchise

dive into a franchise opportunity before looking

opportunity is the best fit.

at the cost of running it long-term. Do not just

What is truly motivating you? Are you looking

but make sure money isn’t your primary driver,” said Khursheed Amhad, multi-unit owner of

consider the initial investment and finances required in opening a franchise, but also take into account the money you will need to sustain it, like your working capital. Finally, make sure you understand that you are making a long term investment. Therefore, you will not make money

2.

initially.

INVEST IN A LAWYER AND A CPA

COMPLETE YOUR DUE DILIGENCE Prior to signing a franchise agreement, go through an in-depth and thorough validation process. A major component of this process is talking to franchisees. “Do not assume talking to three top-performing franchisees is enough. You

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1851 MAGAZINE INAUGURAL PRINT EDITION

6.

When considering a particular franchise

4.

ABSORB THE FDD “Thoroughly understand what a franchise

opportunity, hire a lawyer and an accountant who have experience representing prospective franchisees in transactions. “Their input, guidance, and advice are invaluable and cannot

be duplicated by anyone else,” said Lee Plave,

way after the first term you can exercise your

one of those extreme athletes that jumps off

attorney and partner at Plave Koch. “If you are

options, renegotiate, or leave. Also, try to limit

cliffs with a parachute,” said Eric Bell, Director

looking at a prospective franchise to invest in,

the personnel guarantee to the first term,”

of Sales and Service for Franchise Gator. “He

an attorney who has knowledge of representing

added Trotter.

was asked what it’s like to not have any fear.

franchisees on transactional matters will help

His reply– ‘I have a tremendous amount of fear

you understand the obligations you will be

every time I jump. There’s a challenge in facing

taking on. Additionally, an experienced CPA

it I enjoy. Those who have no fear when base

who understands franchising will be helpful in

jumping are probably not stable. Keep them

evaluating the monetary and financial aspect

8.

away from me.’ Don’t think for a second your

of the business you are considering,” continued

fear is an indication to walk away. Fear is normal.

Plave. Both will open your eyes to the franchise

Work toward understanding it and overcoming

process and the commitment you will undertake.

BE AWARE OF BUSINESSES THAT FOLLOW TRENDS There are many segments in the franchising

it. Eventually, that fear will be a motivator.”

10 .

industry that are quickly rising in popularity.

Yet, before you purchase a franchise model, it is essential to “consider the lifespan of the business,” said Terry Corkery, President and CEO of Franchise Works. Ask yourself, “Is it a

7.

trend that will yield success for five years, 10 years? Does it have serious, long-term growth potential?,” said Corkery. There are a lot of risks

CONSIDER THE REAL ESTATE OPPORTUNITY Research is vital in real estate–research not

associated with investing in trends – like yogurt

REGULATE YOUR CASH

or technology. When the trend dies, you are

“When you get into business, you have the

stuck with a franchise that is no

misconception that you can do whatever you

longer profitable.

want,” said Dennis Demshar, multi-unit franchise

only the location, but also the economy and

owner of Honey Baked Ham. In order to make

the terms of the deal. “Now is the best time

sure your cash lasts, adequately plan throughout

to lock into historically low real estate lease

the calendar year. If you own a restaurant,

rates,” said Randy Trotter, President of Horizon

assume you will have spikes in sales during the

Franchising, VP of franchise development for Workout Anytime as well as an area developer for Boneheads. “To protect yourself in an

9.

holidays. If you have a pest business, assume the summer months will provide the majority of your income. “During those spikes in cash, you have a

uncertain economy, sign a lease for a five-year

MANAGE YOUR FEAR

lot of money in your pocket,” said Demshar. “Plan

term with two or three, five-year options. That

“I once heard an interview with a base jumper,

accordingly and do not spend it all at once.”

The following books lay out strategies and tips for being the best business leader you can be while providing insight on how not to run a business

“Steve Jobs”

By Walter Isaacson

“Good to Great: Why Some Companies Make the Leap…And Others Don’t”

By Jim Collins

“Strengths Finder 2.0”

By Tom Rath

“Bitter Brew: The Rise and Fall of Anheuser-Busch and America’s Kings of Beer”

By William Knoedelseder

1851 PROJECT.COM | 2013 11

TURNING DREAMS INTO REALITY CREATIVITY IS KEY TO FUNDING YOUR BUSINESS

By Brooke Wylie With the economy still in recovery mode and financing hard to come by, potential franchisees are getting more creative than ever before when it comes to pooling the capital it takes to open their own business. Below, we profile some of the more striking ways several entrepreneurs funded their businesses.

John Heifner

$10,000 to more than $500,000, funded

penalties or initial taxes are incurred.

spent 18 years

more than 4,000 businesses in 2009.

Looking for untraditional ways to finance a

The process for using your 401(k) was

franchise has started to become

working as a nurse, eventually climbing to the

first pioneered by Benetrends, a company

more mainstream.

founded by Len Fischer in 1983. Today,

role of Director of

Benetrends says that nearly 10 percent of

“The tight credit market continues to

Healthcare Systems

all franchise businesses are funded utilizing a

challenge budding entrepreneurs in securing

in the Knoxville, TN

portion of a 401(k). Nicole Russo, Director of

the necessary capital for their business

area. While working as a personal trainer on

Marketing for Benetrends, points out that it’s

the side, John realized he wanted to make

becoming more popular because those

the switch from reactive care to full-time

interested in this form of financing

preventative care while tapping into his desire

don’t have to use all of their

to become an entrepreneur. So in 2011, he

401(k) assets – in fact, about 50

became a franchisee with Workout Anytime, a

percent of Benetrends’ clients

are more likely to support

24-hour gym and fitness franchise. But instead

only use about half of the

due to the proven track

of taking on bank loans to fund his business,

funds in

record of success a

John decided to use his 401(k).

their 401(k).

ventures,” said Jania Bailey, President and COO of FranNet. “Even so, franchising continues to remain one of the business opportunities that lenders

franchisor can show a lender.”

John is not the only one looking to his 401(k)

In order to take advantage of this

to get his business off the ground. According

option, individuals must set up a C

to FranFund, a company that helps franchisees

corporation and establish a corporate

find financing opportunities, since October

retirement account. They can then

2008 the percentage of their clients who used

roll outside retirement accounts into

the ROBS (Rollover for Business Start-Up)

the corporate retirement account and invest

lending experts, matches private investors

program to fund their business has increased

the money in company stock. Since the person

with those needing funding. Often called the

from approximately 65 percent to 93 percent.

is buying shares of their own business, they

eHarmony or Match.com of small business,

ROBS transactions, typically ranging from

are effectively feeding it funds. By doing so, no

BoeFly connects all parties involved in the

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Other companies have started realizing the need for financing small business owners face. BoeFly, which was founded by small business

“

Franchising continues to remain one of the business opportunities that lenders are likely to support.

-Jania Bailey

”

loan process, including lenders, borrowers,

they had found that opportunity.

franchisors, etc., and helps facilitate the

With the start-up costs being rather

transaction. Essentially, they introduce

substantial, says Maria, the Van Vrusts had to

those looking to invest in a business with

find alternative ways to finance the business.

those looking for funding, building a good

Using the 401(k) rollover plan and an SBA

match based on what each party is looking

loan with the help of Benetrends, as well as

for. According to the company’s website,

teaming up with another pair of investors, the

BoeFly has facilitated nearly 3 billion

Van Vrusts were able to cover the majority of

dollars worth of transactions

the investment required to get their business

to date.

off the ground. They also learned of leasing opportunities for certain equipment, allowing

“Another emerging trend is using securities-

them to provide additional services for

based lending, in which prospective

customers at a lower cost than buying.

business owners leverage portfolios, much

This method allows business owners a more

in the way you use equity loan,” said Dallas

inexpensive option when their businesses

Kerley, Chief Development Officer for

rely heavily on equipment, and also allows

Benetrends. This means that if someone

owners to keep pace with new

has money in an investment portfolio, they

technology trends.

can generally get 70 percent of that value in a loan – and can often get the loan in

It’s important for new business owners to

approximately 10 days with an interest rate

consider all options and do their homework

of about 4-5 percent.

before deciding on what financing methods are right for them. There are several new

After leaving the corporate world, Maria

options entrepreneurs are using to make

Van Vrust and her husband David were

their dreams a reality, and creating a

looking for a new business opportunity.

custom finance plan through new channels

After visiting their local Sky Zone Sports at

is becoming more available – and more

the request of their daughter, they realized

typical – than ever before.

1851 PROJECT.COM | 2013 13

GIVE TO GAIN HOW

BUILT A LOYAL FAN BASE BY LISTENING TO ITS CUSTOMERS

brand to achieve one mission: to serve a high

treats for kids. “We want to put a smile on

quality product in a fun atmosphere, where

someone’s face every time they come

the customer feels like they are involved in

to Toppers.”

the experience. Twenty two years later and 50 locations deep, the Toppers culture has

The desire to constantly keep customers

become ingrained in each location, as the

happy is based on the original founders

franchisees take pride in going above and

of the pizza concept - a group of very

beyond in customer service and keeping

passionate people who are committed to

their fans happy.

being a part of the best pizza company in the world. Paying attention to details in service

“Our goal is to make personal connections

and ensuring that each pizza fanatic has a

with our customers,” said Scott Iversen,

fun experience when they come to Toppers

Director of Marketing for Toppers. “We try

was the goal from the start. Over time, each

to learn each customer’s name, and we pay

franchisee and corporate store continues

attention to what they have ordered in the

to evolve to further serve the needs of each

past, so when they call in, we can base

individual community.

their order off of their history.” To help make the experience a

“We give the drivers a caddy with plates,

By Lauren Kaminski and Kate Aoueille

positive one overall, each

silverware, napkins, crushed red pepper, and

Toppers location keeps

parmesan, and no other company does that,”

the delivery caddies

said Toppers franchise owner Bill Stayduhar,

Toppers Pizza was built on more than just a

filled with green

who has owned his location in Charlotte

thin crust. Founder and CEO Scott Gittrich

army men, small

for 15 years. He also noted that his location

created the eclectic pizza delivery franchise

trinkets and

supplies dog treats for customers who bring

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“We try to make a personal connection with our customers”

FANS PER LOCATION While Social Media is not a

magic bullet, staying true to its fans has paid off for Toppers.

in their dogs, an interesting and unique

Stayduhar. “If we are just a little bit late, we

gesture for a pizza company.

give them a card for a discount for next time,” he added. Another franchisee, Jon Crowe,

The fun and eclectic culture represented at

who opened his location in Lincoln, Nebraska

each Toppers location begins with corporate,

in 2012, boasts on the brand’s accuracy in

“The difference between us and the big guys

delivery and pick-up times. “If we are going

is the way we communicate,” said Iversen.

to take 30 minutes to deliver, we tell them

A large part of Toppers culture is stemmed

40, and our customers really

from their team member statement – to be

appreciate that.”

Toppers Pizza boasts a higher fan per location number than its larger competitors. Even though the brand is the largest in the delivery pizza category, Toppers earns these numbers by employing a unified brand approach to social media by

the best company in the world and “kill it” on every customer experience. The core

Toppers continues to thrive in customer

values that Toppers passes down to every

service by concentrating on the little details

franchisee and employee is to live with

while also providing a quality product

integrity, have fun, build something special,

and service. The brand implements a ‘no

bring it with passion, and give the customer

questions asked’ policy when a customer

what they want. In order to be a part of the

has a complaint.

not allowing franchisees to create and operate their own Facebook pages. This creates one centralized and contentrich page while also maintaining a consistent local message, allowing Toppers to give its fans

Toppers brand, employees must deliver on these core values time and time again.

1,146

The core of the brand is churning out tasty food while truly catering to each customer to

The culture emanates throughout each

make them feel special, put a smile on their

location, with customer satisfaction as the

face and keep them coming back for more.

main focus. “When we have a new customer,

Coupled with awesome food, it makes sense

we give them a card for a free order of

that Toppers customers call

Topperstix for the next time they call in,” said

themselves fans.

the best Social Media brand experience possible.

1851 PROJECT.COM | 2013 15

Hot Off the Press Kilpatrick Townsend’s Franchise Team congratulates our friend and colleague, Nick Powills and his company, No Limit Media, on the launch of 1851 and its first print issue.

A Verizon Premium Wireless Retailer

Like 1851, Kilpatrick Townsend prides itself on being a “go-to” source for the franchise community. Our firm has earned a national reputation for understanding the franchise business, its processes and systems. We apply our extensive knowledge to help our clients manage their businesses better, reduce conflict, avoid unnecessary litigation and preserve important trading relationships.

For more information, please visit www.kilpatricktownsend.com Rupert M. Barkoff rbarkoff@kilpatricktownsend.com Christopher P. Bussert cbussert@kilpatricktownsend.com ATLANTA AUGUSTA CHARLOTTE DENVER

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Go to www.WirelessZone.com or call Clay Neff • 412-491-6782

TURNING ‘LIKES’ INTO LEADS

By Liza Rush Last September Facebook hit a milestone, reaching 1 billion active users each month. This means Facebook reaches one out of every seven people on the planet. With the average user spending 20 minutes on the site per visit, this gives business owners and franchisors in particular an ample opportunity to sell their brand and, at the very least, spark interest for future development opportunities. The looming question for franchisors searching to expand their markets utilizing social media platforms is how?

*Statistics compiled from 1851’s Virtual Roundtable webinar series.

The Budget.

Reach.

How much money are franchisors budgeting for Social Media?

Facebook reaches one out of every seven people on the planet.

$0-25,000 $25-50,000 $50,000+

Opportunity.

Twitter finds that 56 percent of customer tweets to companies are being ignored, leaving a huge opportunity to increase customer satisfaction.

Growth.

It’s no secret that the Internet has become

create buzz with Twitter, engage through

the primary form of communication for the

insight with Facebook and develop and

majority of the Millennial generation. The

foster relationships through LinkedIn.

outlet is utilized for finding roommates, housing, and even dating, with each having

“It’s more of a laser approach as opposed

a specific platform. By applying the correct

to a flashlight,” Downs said. By infusing PR

approach within each channel, a brand can

through Social Media, a story’s exposure

experience success with development leads.

can grow while also gaining a longer shelf

Instagram, the newest social media giant, has shown and increas of 724% of average daily mobile visitors in only six month’s.

life. This also brings another aspect to the Kevin Downs, Director of Marketing for

table—people. People are more likely to

Wireless Zone, has started 2013 with a

respond and identify with individuals like

fresh outlook. Evolving the brand’s social

themselves. So speak like a human, not a

media presence from validation to lead

press release and create a cohesive voice

generation, Downs’ plan of attack will

across all platforms.

1851 PROJECT.COM | 2013 17

By Brian Diggelmann One of the most influential factors in an

Tony Padulo, VP of Franchise Development

“I’m not sure that means I’m going to have to

entrepreneur’s decision of which franchise to

at Goddard Systems, Inc., says if a franchisor

go out and do my homework,” he says. “My

buy is undoubtedly the franchise disclosure

doesn’t present an item 19, it should be one of

preference is that our clients require their

document (FDD). Historically known as a

the first questions a prospect asks.

franchisees to take the data and come up with

23-item long stack of paper, the FDD serves

their own answers. It doesn’t always happen that

as the bible for the franchise it represents,

“It’s not a write off, but if I were a candidate it

containing much of the relevant information

would certainly raise a red flag,” Padulo says.

someone interesting in buying that franchise

“Some cases may be justified—for example, it

Most importantly, any and all information

would want to know.

may be an emerging franchisor without the

presented in an item 19 must be verifiably

history to do it. You need to understand why.”

true and cannot mislead candidates. So while

But the writers of FDDs face an inherent

way, but it’s certainly better when they do.”

franchisors need not include every detail,

problem—they

Of course, if a brand has

what does end up in the item 19 must paint an

must create a

nothing to hide, including

accurate picture of their business.

legal document

the information is usually

that can be

a solid choice. Toppers

In the end, every FDD will be different and the

understood by

Pizza Director of Franchise

inclusion and specifics of an item 19 will depend

a layperson.

Development Mark Cairns

entirely on the individual franchise. The best

Nowhere is this

said his company includes

practice is to work with an experienced franchise

more important

a detailed item 19 because

attorney who can help make your FDD sell

that in item 19 of

the information paints the

your concept.

an FDD, where

brand in a good light.

a franchisor may choose to include a financial performance representation.

“The numbers are very positive and the stores represented make a lot of money,” Cairns said.

Many franchise prospects mistakenly believe

“From a legal standpoint, it’s very helpful that

the item 19 will tell them how much they can

people can really dive down into the numbers

expect to make as a franchisee, but that’s not

and understand it.”

the case. In reality, item 19s are limited to the hard numbers that show how existing units

Finding the right amount of information to

performed. The entire section is optional, and

share is the next hurdle. Franchise attorney Lee

deciding whether or not to include it is the

Plave suggests franchisors do not include their

first challenge in turning an item 19 into a

complete balance sheets and every

marketing tool.

figure imaginable.

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1851 MAGAZINE INAUGURAL PRINT EDITION

KEY QUESTIONS According to the U.S. Small Business Administration, three key questions to ask while diving into an FDD include:

1 2 3

Do you know how much money you can invest?

What are your abilities?

What are your goals?

i believe that ‘young’ means seemingly endless possibilities.

stand out,

speak up

& be kind. alexis gillette

director of marketing, mooyah burgers, fries & shakes

young ones to watch.

THRIVING UNDER 100K FOR MANY ‘ZEES, LOWCOST FRANCHISES PROVE HIGHLY SUCCESSFUL

Wireless Zone is the largest independent

extremely community oriented and we embrace

Verizon Wireless franchise in America. With

that. The more community outreach we do in

a foundation set on customer service and

these communities, the more successful we are.”

community outreach, it is no wonder this franchise has been able to reach over 460 units

By Matt Diaz

since its founding in 1988.

“I saw a business that I didn’t feel was going

With today’s economic climate, it’s easy to be drawn to low-cost options to help make ends meet. In the world of franchising, however, this notion has its ups and downs. Just because an opportunity is low-cost doesn’t mean its the right choice, nor does it mean you will fail. There are a number of factors that play into owning a successful franchise, and these three franchisees know just what it takes to be successful with less than $100 thousand.

anywhere but up,” said Nate Bastarache, franchisee for Wireless Zone. “I saw stability and growth of the Wireless Zone concept and knew that it was right for me. Additionally, a lower cost option allowed me to build a foundation for success more quickly” The potential for growth was one of the primary reasons Nate got involved with Wireless Zone

BARBARA BLISS-MODDER

and one of the key factors that led to his success.

After 15 years in the automotive industry working primarily as a general manager, Nate opened his first Wireless Zone location in Easthampton, Massachusetts in 2009. Currently,

BRAND: SHOWHOMES

he is working on his fifth store with hopes to

TOTAL INVESTMENT: $43,300-$82,000

open more in the future.

One issue with a low-cost option is growing too

Barbra Bliss-Modder is as passionate a

big too fast. “If you have a number of locations

franchisee as you will find in any system. For

but just one is underperforming, it can bring your

seven years, she has been a franchisee for

entire operation down,” Bastarache said. A good

Showhomes, a premiere home staging franchise

way to curb this issue is to carefully plan out

that transforms vacant houses into life-filled,

developments with respect to time and location.

inviting homes that appeal to buyers.

“As Americans, we often forget that our eyes can

NATE BASTARACHE

be larger than our stomachs, a personal affliction

“For most people, becoming a franchisee

of mine.”

means taking a leap and investing your life into something new,” said Bliss-Modder.

Another way Wireless Zone helps procure

“Being passionate about your concept and

development is through community outreach.

investing more than just time and money is what makes a franchisee successful.”

BRAND: WIRELESS ZONE TOTAL INVESTMENT: $80,250-$268,500

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1851 MAGAZINE INAUGURAL PRINT EDITION

“The wireless industry is extremely saturated with everyone having a phone these days,”

Franchisee of the year for Showhomes in

said Bastarache. “The Wireless Zone model is

2010, Bliss-Modder knows what she’s talking

MORE BRANDS UNDER 100K

about. “I was a realtor for six years before

purchasing his first location in Miami, Florida.

purchasing my territory. I love homes and I

“What really separates us from the

love to help people visualize, so this was a

competition is our passion and having fun,”

perfect business for me.”

said Patrick. “If our customers don’t have a good time and leave feeling good, we haven’t done our job.”

Eric has recently opened his second location in Fort Lauderdale, Florida.

Engineering for Kids Total initial investment: $39,500-$44,500 HandyPro Total initial investment: $68.530-$107,333

BARBARA BLISS-MODDER

Smart Tax Total initial investment: $36,650-$93,600

ERIC PATRICK Fetch! Pet Care Total initial investment: $25,900-$39,500 Proforma Total initial investment: $4,730-$44,700

BRAND: PAINTING WITH A TWIST TOTAL INVESTMENT: $98,000

For most people, becoming a franchisee means taking a leap and investing your life into something new.

TGA Premier Junior Golf Total initial investment: $16,000-$62,200 Stratus Building Solutions

“When choosing a low cost franchise you have to

Total initial investment: $3,450-$57,750

be aware of the barriers to entry and how easy it might be for others to duplicate your product,”

CruiseOne

said Eric Patrick, a franchisee of Painting with a

Total initial investment: $4,630-$26,270

Twist. “This can lead to crowding in a market so it’s important to make sure you believe in your

“A low cost option allows someone without

Anago Cleaning Systems

concept, truly enjoy what you’re doing and focus

significant assets or a major loan from a bank

Total initial investment: $8,540-$65,410

on what separates you from your competition.”

to obtain their dream of business ownership in

Caring Transitions

For Patrick, being in this business is all about

“With the state of the economy right now it’s

Total initial investment: $45,480-$73,680

giving a great experience to his customers. A

difficult for people to find funding, so these

self-taught painter, Patrick originally worked as a

opportunities are very important for building

corporate artist for Painting with a Twist before

up local communities.”

a relatively short period of time,” said Patrick.

Bevintel LLC Total initial investment: $36,900-$50,600

1851 PROJECT.COM | 2013 21

TOP GROWTH SECTORS IN FRANCHISING

By Jordy Patano Every year there are industries and trends that emerge as the leading franchise concepts, representing the ‘hottest’ and fastest growing new business sectors.

Whether it be driven by people looking to make a difference, economic trends or shifting population demographics, people are quick to leap at the fresh opportunities.

We compiled a list of six of the fastest growing sectors of the franchise industry and companies in each of the categories that are particularly strong brands to watch.

into this category to teach more specialized

the space, offering grass-fed beef and organic,

education and help children keep a competitive

locally grown toppings.

edge. Concepts in math, science, music and

5.

engineering, like Mathnasium, Kumon Math & Reading Centers, School of Rock, Engineering for

Ice Cream + Frozen Treats

Kids and The Mad Science Group, help kids see

We have all heard about the froyo craze over

the fun in specialized fields.

the past few years, and this industry isn’t

3.

going anywhere. The sector will continue

Fitness

booming through next year, even though it seems to be saturated in most areas. Leaders

It’s no surprise fitness concepts make the list

will set themselves apart by being innovative

in 2013. Over the past few years, this booming

and adding new menu items that will drive

industry sector has been legs ahead by providing

traffic throughout the entire year. Industry

low-cost services available around the clock.

giants like Red Mango, Menchie’s and Yogli

With many people cutting budgets for this once

Mogli will continue to grow, but new emerging

luxury concept, people are finding convenience

rock stars of the sector like Yogurtini, Forever

with these gyms in their hectic schedule. Some

Yogurt and FrozenPeaks are catching up very

industry giants and up-and-comers in the

quickly. Outside the frozen yogurt industry,

industry include Anytime Fitness, Snap Fitness,

companies like Culver’s, Ritter’s Frozen

As after school programs for children often get

Crunch Fitness, Workout Anytime, KoKo

Custard, Kona Ice and MaggieMoo’s will thrive

cut because of budgets, franchises have stepped

FitClub and Fitness Revolution. There are even

in this diverse sector.

in to create programs designed to give children a

online groups like iLoveKickboxing.com, more

fun, less competitive answer to the sport leagues

specialized fitness facilities like Jazzercise Inc.

of the past. With people looking to pursue their

and focus fitness like Live 2 B Healthy

passions while helping inspire children to live

Senior Fitness.

1.

Children’s Fitness

healthy and active lives, there is a clear reason these franchises are growing so quickly. Some of the top emerging franchises in this sector

4.

6.

Senior Care

With the large population of baby boomers, the 65-year-old and over sector of the United

Hamburgers

States is growing faster than ever before.

Beyond the U.S., the global aging population

include i9 Sports, Soccer Shots, NZone America,

Who doesn’t like a good hamburger when the

is reaching unprecedented levels, demanding

Sky Zone Indoor Trampoline Park, My Gym

toppings are completely your choice? Clearly

this industry grow at an increasing rate just

Children’s Fitness Center and TGA Premier

everyone in America agrees that customization

to keep up. In-home services have been the

Junior Golf and Tennis.

is king in this booming sector. The simplicity of

clear leader of the pack, assisting those who

these concepts is most interesting, with the most

can’t get around as easily as they once could,

successful brands specializing in burgers, then

or those looking for companionship or even

adding on a few additional items to not distract

medical assistance. The variety of services

With declining rankings in the United States,

from the main menu item and the variety of

and opportunities for senior care franchises

especially for math and science scores in our

toppings. Some of the major players in this

will only grow exponentially. Some of the

schools, educators emerged from their careers

QSR segment, as well as fresh up-and-comers,

leaders both nationally and internationally

and turned into entrepreneurs to help solve

are Five Guys, Burger 21, Elevation Burger,

are Qualicare, Right at Home, Home Instead,

the disjuncture. Franchisees with a passion for

MOOYAH, Smashburgers and BurgerFi. Organic

Always Best Care, Bright Star and Seniors

education and industry have quickly jumped

burger chains have also begun moving into

Helping Seniors.

2.

22

Children’s Enrichment Services

1851 MAGAZINE INAUGURAL PRINT EDITION

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Imagery courtesy of The International Franchise Association

STEVE CALDEIRA

By Steve Coomes

WASHINGTON’S GRIDLOCK & SOARING DEBT COULD SLOW PROGRESS IN 2013 Few who know Steve Calderia would ever call him a pessimist. But as the president of the International Franchise Association, Calderia finds forecasting the franchising industry’s future for 2013 unsettling.

Bipartisan gridlock in Washington, soaring national debt and looming health care costs have Calderia—typically an industry cheerleader—concerned about the effects of a stalled government on business growth and profitability. Asked to elaborate on several topics affecting franchising, Calderia shared his thoughts with 1851.

D A E H A R THE YEA OK

2013 OUTLO

STEPHEN J. CALDEIRA

President and CEO of the International Franchise

With the election behind us, what effect will a

lawmakers in the new Congress can consider

second term for President Obama have on the

a comprehensive overhaul of the tax system.

franchising industry?

The partisan rancor, negative rhetoric and perpetual gridlock must come to an end so that

We congratulate President Obama and the

we can begin to heal this country and get it

new members of the 113th Congress and

moving again.

Association, the world’s

respectfully urge them to create bipartisan

oldest and largest

solutions to address long-term fundamental

When you speak with franchisors and

organization representing

fiscal reform, including comprehensive tax

franchisees, how are they preparing for the

reform, reforming entitlement programs and

formal institution of the PACA in 2014?

the franchising industry.

reducing the unsustainable debt. However,

Caldeira works with the IFA

raising taxes on small businesses, including

Franchisees and franchisors alike are simply

board to set the direction for

franchisees, which create 65 percent of all net

running the numbers on their business at this

the organization’s strategic

new jobs, is clearly the wrong approach.

point to determine if they are subject to the

priorities: government relations and public policy,

employer mandate. Many franchisees are Franchise businesses are in every state and

right around that 50 FTE-equivalent employee

congressional district and they stand ready to

threshold, so they need to determine if their

including the association’s

accelerate job creation. While this was a status

numbers of full and part-time employees

political action committee,

quo election, the current status quo for small

qualify them as a “large employer” under the

media relations, public

business is unacceptable.

law. The lack of regulatory guidance on several

relations and professional development programs and research initiatives.

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1851 MAGAZINE INAUGURAL PRINT EDITION

key Affordable Care Act provisions that are With the elections concluded, the current

still being promulgated is preventing them

Congress should act immediately to pass a

from preparing as thoroughly as they’d like, but

short-term deal that would avert the fiscal

these small business owners will have to make

cliff by extending all current tax rates until

tough decisions about how to comply with the

FRANCHISING BY THE NUMBERS ·

Number of franchise establishments in the U.S. will increase by 1.4 percent in 2013

·

Franchise industry projected to create 162,000 new jobs in 2013

·

GDP of franchise sector projected to increase 4.1 percent in 2013

·

Output of franchise establishments in nominal dollars will increase 4.3 percent in 2013 for an increase of $33 billion

law while still growing their businesses.

risk to having a healthier and sustainable

franchising, including 4,314 who have become

We also continue to educate our members

recovery. While franchising continues to

veteran franchise business owners, since 2011

on a very consistent basis through all of our

perform well, long-term growth and business

through Operation Enduring Opportunity,

communications channels (including health

planning is still weaker than it could be.

a campaign of the International Franchise

care-related webinars) on what we know and

Association’s VetFran Strategic Initiative.

what they may need to be thinking about as we

Immigration reform will most likely be on the

As we continue to work hard each and

continue to move forward and learn more.

federal legislative agenda a well, so we’ll be

every day to extend career opportunities

heavily engaged in that critical issue area for

to our nation’s veterans, we are gratified to

industry as well.

recognize the great progress that has been

What is the biggest challenge the franchise industry as a whole faces in 2013?

Unintended consequences of city, state and

made by employers across all segments of the What’s the biggest benefit to the franchise

franchising industry. As we celebrated Veterans

industry in 2013?

Day this year, we continue to recognize that

federal issues/regulations around health care,

we must keep up the momentum to enable our

workforce policy and banking (at the federal

With more than 1 million veterans transitioning

nation’s veterans to fulfill their dreams and find

level which affects small business lending),

out of military service by 2015, veterans

meaningful career opportunities here at home.

and which have proliferated in recent years,

returning from Iraq and Afghanistan could

present a huge threat to the industry. So any

be a huge benefit to the franchise industry in

In what industry will franchising see the

new legislation or increased regulations that

2013, both as highly-qualified employees and

largest growth spurt in 2013 and why?

stifle growth, as oppose to enable it, poses a

franchisees entering the industry.

significant risk to achieving and sustaining the economic recovery this country urgently needs.

Recovery of the housing market will help IFA answered First Lady Michelle Obama’s

many sectors of our industry, including real

call to assist in the transition effort through

estate and residential services tick upward.

Additionally, at the federal level, the lingering

the White House Joining Forces initiative. In

Additionally, as 10,000 baby boomers hit the

uncertainty surrounding the direction of federal

2012, 64,000-plus veterans, military spouses

age of 65 each day, the in-home healthcare

tax and spending policy also poses a significant

and wounded warriors have started careers in

sector will continue to grow as well.

1851 PROJECT.COM | 2013 27

YOUNG

ONES TO

WATCH

By Ben Heinemann

Young people are making noise – and are on the horizon of big things within their respective businesses. If you asked Geoff Hill, Vice President of Roark Capital Group, he would suggest the formula for young executives maturing into established leaders is simple: Results + knowledge + relationships. “If someone asked me for advice on how they can become more successful in business, I would ask them how they were doing in each of those categories,” he says.

Keeping that winning recipe in mind, 1851’s list of 40 young people have the drive and determination to make big things happen in the early stages of their careers, making room for even bigger things to come down the road.

VOTE FOR THE TOP YOUNG ONES AT: FACEBOOK.COM/1851MAGAZINE

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1851 MAGAZINE INAUGURAL PRINT EDITION

FRANCHISING

YOUTH

MOVEMENT

1851 PROJECT.COM | 2013 29

YOUNG ones to WATCH

27

34

32

32

35

28

ASHLEY BETZENDAHL

RANDY SHACKA

MATT HALLER

LIBERTY HARPER

ADAM POVLITZ

GODDARD SYSTEMS, INC. AGE: 27

TWO MEN AND A TRUCK AGE: 34

IFA AGE: 32

FATBURGER AGE: 32

ANAGO AGE: 28

If you asked Ashley Betzendahl in college what she would be when she grew up – Social Web Communications Manager probably wouldn’t have been the four words of her choice. Thankfully for Goddard Systems, Inc., that career path is perfectly fitting for the 27- year- old.

In fact, the social guru has paved the way for other brands in the sense of best practices. Take a look at her work and you will receive a glimpse into social perfection. As for her next step? Much like Social Media, Betzendahl’s world changes every second.

She does love franchising, though, and sees herself painting a nice footprint in the future.

Randy was 21, having just completed a semester internship at Disney World, when he got a call from the director of marketing for Two Men And A Truck regarding an internship opportunity in the company’s marketing department. Now as the President of Two Men, you might say the internship opportunity has paid off for Randy, who at the stillyoung age of 34 continues to inject the company with his energy and spirit.

“There is no pattern for what business looks like in the future and this chaotic environment in itself lends to more opportunities for the younger generation that are ready to take them on,” he says.

As Vice President, Public Affairs and Chief of Staff to the President & CEO for the International Franchise Association, this 32-year-old rising superstar has a future path planned and a great mentor to follow in IFA’s President Steve Caldeira.

Haller’s eyes have been on the ball ever since graduating from North Carolina State University, where he was director of industry relations at the Pharmaceutical Care Management Association and manager of political affairs at the U.S. Chamber of Commerce. Oh, and don’t forget legislative assistant for UPS Corporate Public Affairs and a director of public affairs at Levick Strategic Communications, LLC.

Liberty has done it all. She has been a franchisee, a franchisor, a consultant, an Internet TV show host and a development member for a marketing brand. Now guess her age - Harper is 32 years old, but has built a portfolio that would make some of the franchise community’s influencers jealous.

Despite accomplishing so much so fast, she refuses to sit still. The entrepreneur in her still craves making a difference in people’s lives by relying on a blend of experience that encompasses success and failure.

When Adam decided he wanted to be in a more impactful position, he left a successful job at IBM and jumped into the world of franchising with Anago.

As Anago’s Executive Vice President, the 28-yearold certainly makes an impact. And while he says young people can be wellrepresented in business, it’s important for them to work hard for it. “Put in the hours, work hard, work smart, and no matter what age you are, you’ll be recognized,” he says.

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1851 MAGAZINE INAUGURAL PRINT EDITION

YOUNG ones to WATCH

28 28

25

30

31

27

MANDY & AHMAD

ALEXIS GILLETTE

STEVEN & JASON PARKER

GEORGIA PAULDING

DAVID PEDDIE

FOREVER YOGURT AGE: 35 & 28

MOOYAH AGE: 28

K-9 RESORTS AGE: 25 & 27

SYLVAN AGE: 31

MATHNASIUM AGE: 30

Over the last two years, self-serve yogurt franchisees have been all the rage – Mandy and Ahmad noticed the trend exploding in Scottsdale, AZ, where the two ran a vacation-rental company. The two young entrepreneurs decided to bring the froyo craze to Chicago, where Forever Yogurt has taken root as the most successful froyo business in the Midwest.

New additions to the concept like a Froth Bar (hot chocolate) have earned award winning results, netting sweet success for not only Mandy and Ahmad but their franchisees.

Alexis credits a clever writing sample, an artfully crafted resume and her sense of humor (not to mention some serious style when it comes to her shoes) for launching her career at such a young age. As a selfproclaimed food lover, her job as Director of Marketing at MOOYAH is the perfect fit. And even though she admits that “young means less years on earth,” she prefers to believe that “young means seemingly endless possibilities. Stand out, speak up and be kind.”

Ray Kroc. Harland Sanders.

Fred Deluca. Jimmy John Liautaud. Jason and Steven Parker. That’s the dream for these two young franchisors. They don’t sell hot dogs (they take care of dogs in a luxurious resort) or another American staple food product – but, when it comes to dogs and animal day care, they hope someday they can be mentioned in the same sentence as the famous founders who preceded them. How will they get there? By listening a lot, taking a few aggressive leaps, and banking on the fact that no one can take care of furry family members better than they can.

Georgia Paulding has always had a passion for working with kids.

Ultimately, her current position within Sylvan’s Franchise Development team offered her a way to make a difference and help today’s youth. “If a senior executive takes a chance on mentoring a young professional, it is my belief that the company will ultimately benefit from another generation of networking, fresh ideas and enthusiasm,” she says of young people in the corporate world. “Those young professionals then have a responsibility to step up and become a leader themselves within the company.”

When David Peddie became the Center Director of a Mathnasium in 2006, it’s doubtful he could have known that just six years later he’d be a key member of the supplemental education franchise’s corporate team.

In 2007 he opened his own center and grew it to be among the top 10 percent of franchises within the entire Mathnasium system.

David’s passion and gift for marketing caught the eye of the corporate team and he was promoted to Western Regional Manager in 2011 and Head of Marketing a year later. Today, Mathnasium opens about one center as week and has seen a jump in center sales under David’s leadership.

1851 PROJECT.COM | 2013 31

CHRIS VOLK PITA PIT AGE: 29

he found out that Pita Pit offered a discount on franchise fees for qualified veterans. As a military veteran, Volk placed a high value on discipline,

Chris is a Hazen, North Dakota native and Army

precision and following a set plan, which he

veteran. At the age of 21, he decided to enlist in

has been able to transfer into success with

the United States Army and was stationed at Fort

Pita Pit. Volk is currently a multi-unit franchise

Drum in New York, near the first Pita Pit location

spearheading the growth of Pita Pit throughout

in Kingston, Ontario. After extensive research

North Dakota.

BRITTANY & ANTHONY RODGERS HAND & STONE AGE: 29 & 32

franchisees identify the right opportunity with them. Equipped with a financial plan, passion and vision, the young husband/wife team landed upon an emerging New Jersey-based

Brittany and Tony Rodgers always knew they

franchisor, Hand & Stone Massage and Facial

wanted to own their own business–they just

Spa. Much like other first time franchisees, the

didn’t know what. They turned to FranNet,

duo plans to work their way into multi-unit

a franchise broker that helps prospective

franchise ownership.

CADE HOWARD THE GROUNDS GUYS AGE: 22

becoming a franchise owner. Howard is all for bucking trends and plans to continue growing his franchise business in his community.

Cade Howard doesn’t believe in stereotypes. If he did, he wouldn’t be an emerging franchisee of The Dwyer Group’s lawn care concept, The Grounds Guys. Why? For one, he is 22, and two, he already owned another lawn care business before

KAT COLE CINNABON AGE: 33 Kat Cole turned a spending-money gig at Hooters into a skyrocketing career in franchising. She landed a job at Hooters corporate before she was old enough to rent a car, and by her late twenties was being offered positions with VP in the title.

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1851 MAGAZINE INAUGURAL PRINT EDITION

Today, Cole is a part of the booming Focus Brands, serving as President of Cinnabon, Inc.

JON-ANTHONY LUI TUTOR DOCTOR AGE: 27

father – a franchise sales veteran who taught Lui more than just the basics. In college, the depth of understanding wowed his classmates. Today, it

If Jon-Anthony Lui believed everything he read, he

wows his colleagues. And this is just the beginning

probably wouldn’t be successful as a franchise in

for the 27-year-old, who says “I don’t just want to

the Tutor Doctor system. When Lui was in college,

be successful, I want to be significant.”

his text book gave him a two-lined paragraph definition on franchising. Thankfully, he had his

THE PITA PIT TEAM

alternative to fast food. This has all meant

PETER RIGGS, BEN DRAKE, & COREY BOWMAN AGE: 33, 33, & 35

Corey as they continue to grow the brand both

success at a young age for Peter, Nelson and

in the U.S. and Canada.

Guess what? This youthful brand is run by some pretty youthful and very successful executives.

If you lived on (or visited) a D1 college campus, chances are you have experienced the healthy

JEREMY LEE HUDDLE HOUSE AGE: 34

significant influence on franchisees and their local store marketing. The local store marketing guru has since helped hundreds of franchisees strengthen

When Jeremy started his franchising career,

their local communications through events and

he certainly wasn’t planning on staying in it

promotions. Lee’s helping hand has also given him

forever – especially since he has always had the

real life experience, which will, someday, provide

entrepreneurial bug to open his own restaurant.

beneficial for him opening his own restaurant – or

But things changed as he realized he could have

perhaps starting his own franchise brand.

JOHN HELM

When John told a boss of his he wanted to own

Jersey Mikes Subs Age: 33 You could say it was fate that John ended up owning five Jersey Mike’s locations in New Jersey – he attended the same high school as the Founder and CEO, Peter Cancro, who founded the sandwich franchise when he was only 17.

his own business, his boss not only offered to be a silent partner, but confessed to John that he had always wanted to own a Jersey Mike’s as well. And so, at 25, John opened his first location in Brick, New Jersey, and continues to expand along the Jersey Shore slinging some of the best sandwiches around.

ALICIA SORBER TWO MEN AND A TRUCK AGE: 26

the corporate office in Lansing, Michigan, Alicia became the first employee of the brand’s Chicago location. Now, after even more hard work and a

Growing up, Alicia was intrigued by the growth of

move across the country, Alicia is the owner of the

her family business, which just so happened to be

San Diego location and loves every minute of it.

the iconic Two Men And A Truck. But there were

And no, she doesn’t miss the snow.

no hand-me-downs for Alicia. After putting in the hard work as an intern and eventually working at

DARYL SMITH JR. FANTASTIC SAMS Age: 30 After graduating from the University of Maryland – Eastern Shore, Daryl leaped into the corporate world, working as a project manager for Verizon

the move to franchising, working as a marketing director for Chick-fil-A while also deciding to pursue his dream of business ownership. With a passion for the hair industry, Daryl opened his very own Fantastic Sams in Dover, adding to his already impressive resume all before the age of 30. Now that’s what we call fantastic.

Telecommunications for six years. He then made

JOSH COHEN JUNKLUGGERS Age: 30 Josh got the idea for making extra money hauling junk away while huddled around a campfire in Australia where he was studying abroad. Upon

eventually growing the company to the current multi-state and very successful operation it is today. “I started with my Mom’s SUV and $3,000 of Bar-Mitzvah money, so I wasn’t well funded. It takes passion and perseverance to succeed more than anything,” he says.

his return to the states and at the age of 21, he launched the business using his mom’s SUV,

JOSH SKOLNICK MONSTER TREE SERVICE

1851 MAGAZINE INAUGURAL PRINT EDITION

they can do it, so can I.” And so, Josh founded

AGE: 28

Monster Tree Service, growing the company to

Josh is a career landscaper who started a multi-

a profitable multimillion dollar business in four

crew lawn care service while in high school. His

years. As Josh puts it, “I’ve built a substantial

clients often asked him to address their tree

business without ever removing a tree myself.”

problems, but having no experience himself, he

Who says money doesn’t grow on trees?

subcontracted the work. Noticing the money

34

tree landscapers were making, Josh thought “If

BEAU GREEN RIGHT AT HOME AGE: 30

grandmother and his mother-in-law and realized he and his wife wanted to find a way to provide a better service at home. The former University of

When it comes to senior home care, rarely do

Louisville walk-on basketball player went on to

you find the youth interested in the business.

have a solid college career as a guard at Samford.

That is unless you are Beau Green, 30-year-old

The discipline learned as a college athlete has

franchisee of Right at Home in Birmingham, AL.

guided Green through following the franchise

Green watched how his mother cared for his

game plan at Right at Home.

MINDY GOLDE

has helped Systino grow into a well-respected

LISTEN 360

platform, and then while on top of the community,

AGE: 33

through a name change to Listen360. That’s called

If the franchise community were a movie, Mindy

fearlessness. President Golde? Maybe someday.

may call it “Old School” – and probably wouldn’t

In the meantime, she is focused on the client and

watch it. That “Old School” mentality does not

passionately making a difference for them. She

work for Golde—in fact, she completely ignores

is creating the next stage of service standards –

being told she has to wait her turn. The go-getter

qualities sure to be embraced by the followers.

TODD BINGHAM

young people like himself have a tremendous

FRANNET AGE: 35

opportunity to make it in business despite the current economic climate.

Todd started his career in the tech field right out of college, working at a hospital in London, KY. Now, as Vice President of FranNet, Todd “loves being a part of an organization that helps people realize their dreams,” and believes that

DOUG SCHNEIDER

soccer with Soccer Shots founders Jason Webb

SOCCER SHOTS Age: 35

around, Doug became one of the first franchises

Doug has always had a passion for soccer, playing the sport almost his entire life and even playing in the the Olympic Development program and traveling to Scotland to train with a first division professional team. Doug also played college

and Jeremy Sorzano, and after kicking the idea

in the Soccer Shots system. Now, at the ripe age of 36, Doug, along with his brother Kevin, have capitalized on their passion for soccer, filling their days doing what they love best.

1851

L A I C O S

100

By Kate Aoueille

er’s lue to the consum va ds ad it n he w successful ers monthly active us with us. A brand is n lk io ta ill m ey 1 Th .

90 h us it at W talk eate interaction.

Brands no longer l, content-driven e opportunity to cr fu th g ng in ni iz ea se m e ng ar l ti ds book on traditiona experience by crea unts, certain bran e th co ac ng r ti te ri it -w Tw re n le io 465 mill audience whi media. on Facebook and whelmingly large er ov is th are owning social h it at w th s ds on ti an ec br 0 nn co 10 the Top meaningful are 1851’s picks of g in w llo fo e Th g. advertisin

* Numbers are current as of 1.14.13

Rank

Franchise

1.

38

# of Facebook Followers

# of Twitter Followers

315,263 9,559,360

Facebook + Twitter Link

FB: http://www.facebook.com/tacobell TWITTER: https://twitter.com/#!/TacoBell

2.

5,397,759

47,764

FB: http://www.facebook.com/dairyqueen TWITTER: https://twitter.com/#!/Dairyqueen

3.

1,637,929

132,890

FB: http://www.facebook.com/jimmyjohns TWITTER: https://twitter.com/#!/jimmyjohns

4.

7,863,947

156,864

FB: http://www.facebook.com/Dominos TWITTER: https://twitter.com/dominos/

5.

26,795,226

900,280

FB: http://www.facebook.com/McDonalds TWITTER: https://twitter.com/#!/McDonalds

1851 MAGAZINE INAUGURAL PRINT EDITION

* Numbers are current as of 1.14.13

# of Facebook Followers

# of Twitter Followers

6.

19,634,665

918,871

7.

9,912,458

152,727

FB: http://www.facebook.com/PizzaHut TWITTER: https://twitter.com/#!/pizzahut

8.

8,319,533

194,330

FB: http://www.facebook.com/DunkinDonuts TWITTER: https://twitter.com/#!/DunkinDonuts

9.

4,561,970

82,610

FB: http://www.facebook.com/benjerry TWITTER: https://twitter.com/benandjerrys/

10.

3,733,783

68,909

FB: http://www.facebook.com/applebees TWITTER: https://twitter.com/applebees

Rank

Franchise

Facebook + Twitter Link

FB: http://www.facebook.com/subway TWITTER: https://twitter.com/#!/SUBWAY

1851 PROJECT.COM | 2013 39

* Numbers are current as of 1.14.13

Franchise

Rank

40

# of Facebook Followers/ Likes

# of Twitter Followers

Facebook + Link Link

11

Buffalo Wild Wings

9,883,441

224,346

FB: http://www.facebook.com/BuffaloWildWings TWITTER: https://twitter.com/BWWings

12

Outback Steakhouse

2,318,032

32,206

FB: http://www.facebook.com/outback TWITTER: https://twitter.com/Outback/

13

Arby’s

1,973,991

86,702

FB: http://www.facebook.com/arbys TWITTER: https://twitter.com/Arbys

14

Carl Jr’s

1,163,147

30,812

FB: http://www.facebook.com/carlsjr TWITTER: https://twitter.com/#!/CarlsJr

15

Baskin Robbins

5,586,435

36,237

FB: http://www.facebook.com/baskinrobbins TWITTER: https://twitter.com/#!/BaskinRobbins

16

Chick-fil-A

6,586,704

207,863

FB: http://www.facebook.com/ChickfilA TWITTER: https://twitter.com/ChickfilA/

17

Wendy’s

2,816,268

144,278

FB: http://www.facebook.com/wendys TWITTER: https://twitter.com/wendys

18

Radio Shack

1,559,229

133,536

FB: http://www.facebook.com/RadioShack TWITTER: https://twitter.com/#!/RadioShack

19

Burger King

5,955,189

78,591

FB: http://www.facebook.com/burgerking TWITTER: https://twitter.com/BurgerKing

20

7-Eleven

2,562,073

29,343

FB: http://www.facebook.com/7Eleven TWITTER: https://twitter.com/#!/7eleven

21

Papa John’s

2,653,742

65,942

FB: http://www.facebook.com/papajohns TWITTER: https://twitter.com/#!/PapaJohns

22

Sonic Drive-In

2,321,405

32,763

FB: http://www.facebook.com/sonicdrivein TWITTER: https://twitter.com/#!/sonicdrive_in

23

Cold Stone Creamery

1,974,969

15,390

FB: http://www.facebook.com/coldstonecreamery TWITTER: https://twitter.com/#!/ColdStone

24

Kentucky Fried Chicken

6,068,352

117,679

FB: http://www.facebook.com/KFC TWITTER: https://twitter.com/#!/kfc_colonel

25

Little Caesar’s

1,395,767

8,078

FB: http://www.facebook.com/LittleCaesars TWITTER: https://twitter.com/littlecaesars

1851 MAGAZINE INAUGURAL PRINT EDITION

* Numbers are current as of 1.14.13

Franchise

Rank

# of Facebook Followers/ Likes

# of Twitter Followers

Facebook + Link Link

26

Hardees

815,399

16,119

FB: http://www.facebook.com/Hardees TWITTER: https://twitter.com/#!/Hardees

27

Edible Arrangements

615,775

22,114

FB: http://www.facebook.com/ediblearrangements TWITTER: https://twitter.com/#!/edible

28

Cinnabon

871,349

28,663

FB: http://www.facebook.com/Cinnabon TWITTER: http://twitter.com/#!/Cinnabon

29

Hungry Howie’s Pizza

211,108

2,383

FB: http://www.facebook.com/hungryhowies TWITTER: https://twitter.com/#!/hungry4howies

30

Yogurtland Franchising Inc.

288,660

7,874

FB: http://www.facebook.com/yogurtland TWITTER: https://twitter.com/YogurtlandInc

31

Famous Dave’s

317,255

28,335

FB: http://www.facebook.com/famousdaves TWITTER: https://twitter.com/famous_dav

32

Quiznos

1,028,153

23,731

FB: http://www.facebook.com/Quiznos TWITTER: https://twitter.com/#!/Quiznos

33

Moe’s Southwest Grill

243,315

22,629

FB: http://www.facebook.com/moessouthwestgrill TWITTER: http://twitter.com/#!/Moes_HQ

34

Sears Home & Business Franchises

2,210,150

83,143

FB: http://www.facebook.com/sears TWITTER: https://twitter.com/Sears

35

CiCi’s Pizza

930,129

1,719

FB: http://www.facebook.com/Cicis TWITTER: https://twitter.com/#!/CiCis_Pizza

36

Toppers Pizza

56,112

3,695

FB: http://www.facebook.com/ToppersRocks TWITTER: https://twitter.com/#!/ToppersPizza

37

Auntie Anne’s Pretzels

738,390

28,191

FB: http://www.facebook.com/auntieannespretzels TWITTER: http://twitter.com/#!/Auntieannes

38

GNC Franchising

959,584

100,236

FB: http://www.facebook.com/GNCLiveWell TWITTER: https://twitter.com/#!/GNCLiveWell

39

Rita’s Water Ice

723,220

15,928

FB: http://www.facebook.com/RitasItalianIceCompany TWITTER: https://twitter.com/#!/RitasItalianIce

40

Bojangles’ Restaurants, Inc.

287,772

5,504

FB: http://www.facebook.com/Bojangles TWITTER: http://twitter.com/#!/Bojangles1977

1851 PROJECT.COM | 2013 41

* Numbers are current as of 1.14.13

Franchise

Rank

42

# of Facebook Followers/ Likes

# of Twitter Followers

Facebook + Link Link

41

Five Guys

816,500

22,630

FB: http://www.facebook.com/fiveguys TWITTER: https://twitter.com/Five_Guys/

42

Popeye’s Louisiana Kitchen

333,985

14,056

FB: http://www.facebook.com/PopeyesLouisianaKitchen TWITTER: https://twitter.com/PopeyesChicken

43

School of Rock

279,123

5,309

FB: http://www.facebook.com/SchoolofRockUSA TWITTER: https://twitter.com/#!/SchoolOfRockUSA

44

Hampton Hotels

249,178

16,696

FB: http://www.facebook.com/Hampton TWITTER: https://twitter.com/#!/hampton

45

Firehouse Subs

384,493

17,033

FB: http://www.facebook.com/firehousesubs TWITTER: http://twitter.com/#!/FirehouseSubs

46

Smashburger Franchising LLC

95,397

9,190

FB: http://www.facebook.com/smashburger TWITTER: https://twitter.com/Smashburger

47

Double Tree by Hilton

178,484

45,629

FB: https://www.facebook.com/Doubletree TWITTER: https://twitter.com/#!/doubletree

48

Lenny’s Sub Shop

89,258

3,734

FB: http://www.facebook.com/LennysSubs TWITTER: https://twitter.com/#!/lennyssubs

49

Which Wich Superior Sandwiches

170,653

13,116

FB: http://www.facebook.com/whichwich TWITTER: https://twitter.com/#!/whichwich

50

Taco John’s Int’l. Inc.

111,223

6,639

FB: http://www.facebook.com/tacojohns TWITTER: https://twitter.com/#!/tacojohns

51

Checkers Drive-In Restaurants

129,127

1,355

FB: http://www.facebook.com/checkersrallys TWITTER: https://twitter.com/checkersrallys

52

The Melting Pot

341,057

12,122

FB: http://www.facebook.com/themeltingpotrestaurants TWITTER: https://twitter.com/#!/TheMeltingPot

53

Smoothie King

287,464

3,790

FB: http://www.facebook.com/SmoothieKing TWITTER: https://twitter.com/#!/smoothieking

54

MOOYAH Franchise

57,137

21,286

FB: http://www.facebook.com/Mooyah TWITTER: https://twitter.com/#!/mooyahburger

55

Embassy Suites Hotel

358,421

13,052

FB: https://www.facebook.com/EmbassySuitesHotels TWITTER: https://twitter.com/#!/EmbassySuites

1851 MAGAZINE INAUGURAL PRINT EDITION

* Numbers are current as of 1.14.13

Franchise

Rank

# of Facebook Followers/ Likes

# of Twitter Followers

Facebook + Link Link

56

Wingstop Restaurants Inc.

191,610

21,765

FB: http://www.facebook.com/Wingstop TWITTER: http://twitter.com/#!/wingstop

57

H&R Block

143,187

13,759

FB: http://www.facebook.com/hrblock TWITTER: https://twitter.com/#!/HRBlock

58

Qdoba Mexican Grill

132,955

16,575

FB: http://www.facebook.com/QdobaMexicanGrill TWITTER: http://twitter.com/#!/QdobaMexGrill

59

Hilton Garden Inn

105,159

2,197

FB: http://www.facebook.com/HiltonGardenInn TWITTER: http://twitter.com/#!/maidbrigade

60

Great Clips

72,080

5,381

FB: http://www.facebook.com/GreatClips TWITTER: https://twitter.com/#!/GreatClips

61

Huddle House

46,527

3,430

FB: http://www.facebook.com/ILoveHuddleHouse TWITTER: https://twitter.com/#!/huddlehouse

62

A&W Restaurants Inc.

153,427

3,872

FB: http://www.facebook.com/awrestaurants TWITTER: https://twitter.com/#!/awrestaurants

63

Pizza Ranch

74, 365

2, 041

FB: http://www.facebook.com/PizzaRanchRacing TWITTER: https://twitter.com/pizzaranch

64

Charley’s Grilled Subs

165,263

1,970

FB: http://www.facebook.com/CharleysPhillySteaks TWITTER: http://twitter.com/#!/Charleys

65

Ace Hardware

369, 051

17,548

FB: http://www.facebook.com/acehardware TWITTER: https://twitter.com/#!/AceHardware

66

ampm

364, 665

9,281

FB: http://www.facebook.com/ampm TWITTER: https://twitter.com/#!/ampm

67

Anytime Fitness

85,950

60,602

FB: http://www.facebook.com/AnytimeFitnessOfficial TWITTER: https://twitter.com/#!/AnytimeFitness

68

Genghis Grill

94,489

27,319

FB: http://www.facebook.com/genghisgrill TWITTER: https://twitter.com/#!/genghisgrill

69

Marble Slab Creamery

143, 984

958

FB: http://www.facebook.com/marbleslabcreamery TWITTER: https://twitter.com/#!/marbleslab

70

Captain D’s

69, 192

2,557

FB: http://www.facebook.com/CaptainDs TWITTER: https://twitter.com/#!/CaptainDs

1851 PROJECT.COM | 2013 43

* Numbers are current as of 1.14.13

Franchise

Rank

# of Twitter Followers

Facebook + Link Link

71

Denny’s

604,051

18,080

FB: http://www.facebook.com/dennys TWITTER: https://twitter.com/#!/DennysDiner

72

The UPS Store

116,778

3,865

FB: http://www.facebook.com/theupsstore TWITTER: https://twitter.com/#!/TheUPSStore

73

Snap On Tools

294, 050

6,873

FB: http://www.facebook.com/SnaponTools TWITTER: https://twitter.com/#!/Snapon_Tools

74

Massage Envy

89,727

4, 257

FB: http://www.facebook.com/MassageEnvy TWITTER: https://twitter.com/#!/MassageEnvy

75

Capriotti’s Sandwich Shop

49,843

10, 327

FB: http://www.facebook.com/capriottis TWITTER: https://twitter.com/#!/capriottis

76

Fetch! Pet Care

28,899

2,160

FB: http://www.facebook.com/fetchcorporate TWITTER: http://www.twitter.com/fetchpetcare

Goddard Systems, Inc.

15,856

3,389

FB: http://www.facebook.com/goddardschool TWITTER: http://twitter.com/#!/goddardschool

Golden Corral

321, 166

5, 445

FB: http://www.facebook.com/goldencorral TWITTER: https://twitter.com/GOLDENCORRAL

79

Wing Zone

18, 870

2,811

FB: http://www.facebook.com/WingZoneNation TWITTER: https://twitter.com/#!/wingzone

80

Radisson Hotels

75, 832

3, 852

FB: http://www.facebook.com/Radisson TWITTER: https://twitter.com/#!/radisson

81

Orange Leaf Frozen Yogurt

73, 860

7, 976

FB: http://www.facebook.com/orangeleafyogurt TWITTER: https://twitter.com/#!/myorangeleaf

82

Papa Murphy’s

200, 802

945

FB: http://www.facebook.com/papamurphyspizza TWITTER: https://twitter.com/#!/papamurphyspizza

83

The Haagen-Dazs Shoppe Co.

64, 894

1, 838

FB: http://www.facebook.com/haagendazsshops TWITTER: https://twitter.com/#!/haagendazsshops

84

Pita Pit

31, 392

3,392

FB: http://www.facebook.com/pitapitrocks TWITTER: https://twitter.com/#!/pitapitusa

85

Biggby Coffee

20,148

7,746

FB: http://www.facebook.com/BiggbyCoffee.Bhappy TWITTER: https://twitter.com/BiggbyBob

77 78

44

# of Facebook Followers/ Likes

1851 MAGAZINE INAUGURAL PRINT EDITION

* Numbers are current as of 1.14.13

Franchise

Rank

# of Facebook Followers/ Likes

# of Twitter Followers

Facebook + Link Link

86

Lawn Doctor

10,117

822

FB: http://www.facebook.com/LawnDoctorFans?ref=ts TWITTER: https://twitter.com/LawnDoctor

87

Culver Franchising System Inc.

332, 722

12,674

FB: http://www.facebook.com/culvers TWITTER: https://twitter.com/#!/culvers

88

Long John Silver’s

82,461

6,326

FB: http://www.facebook.com/LongJohnSilvers TWITTER: https://twitter.com/#!/longjohnslvrs

89

Philly Pretzel Factory

24, 028

2,406

FB: http://www.facebook.com/PhillyPretzel TWITTER: https://twitter.com/#!/ppfpretzels

90

Matco Tools

149, 359

1,359

FB: http://www.facebook.com/matcotools TWITTER: https://twitter.com/#!/matcotools

91

Bruster’s Real Ice Cream

66, 785

78

FB: http://www.facebook.com/BrustersRealIceCream TWITTER: https://twitter.com/#!/realicecream

92

Hilton Garden Inn

105,157

2,197

FB: http://www.facebook.com/HiltonGardenInn TWITTER: http://twitter.com/#!/maidbrigade

93

Right at Home

6,031

3,363

FB: http://www.facebook.com/pages/Right-at-Home/138394643218 TWITTER: https://twitter.com/#!/rightathomeus

94

Forever Yogurt

6,247

2,805

95

Jersey Mike’s Subs

77,449

4,613

FB: http://www.facebook.com/jerseymikes TWITTER: https://twitter.com/#!/lovejerseymikes

96

Planet Fitness

245,712

16,915

FB: http://www.facebook.com/planetfitness TWITTER: https://twitter.com/#!/planet_fitness

97

Choice Hotels

114,918

12,915

FB: http://www.facebook.com/choicehotels TWITTER: http://twitter.com/#!/ChoiceHotels

98

Supercuts

39,953

4978

FB: http://www.facebook.com/Supercuts TWITTER: https://twitter.com/#!/Supercuts

99

TCBY

76,478

9,431

FB: https://www.facebook.com/tcby TWITTER: https://twitter.com/#!/tcby

100

Stevie B’s Pizza

62,635

1,159

FB: http://www.facebook.com/SteviBsPizza TWITTER: https://twitter.com/#!/stevibs

FB: http://www.facebook.com/pages/Forever-Yogurt/129135957108387?fref=ts

TWITTER: https://twitter.com/ForeverYogurt

1851 PROJECT.COM | 2013 45

PEYTON & PAPA In October of 2012, Peyton Manning became known for more than being the quarterback of the Denver Broncos. Manning purchased 21 Papa John’s franchises in the Denver area, likely the result of his friendship with Papa himself, John Schattner.

Not only is the deal sure to be a lucrative enterprise for Manning, but Papa John’s and Manning have already done a number of commercials together, acting as a franchisee and a spokesman for the delivery pizza brand at the same time.

FRANCHISES TURN TO ATHLETES TO POWER BUSINESS

By Steve Coomes For professional athletes, there comes a time

“When you tell yourself, ‘I’ll get into it

when the word “professional” gets taken out of

and get somebody to run it while I do

the picture. What follows is usually a struggle

something else,’ that’s always a recipe

of finding beneficial and, more importantly,

for failure,” said Bridgeman, whose B.P.

meaningful work after sports. Established

Companies owns 165 Wendy’s and 127

rarity, says Troy players have the “ These RESOURCES and the DESIRE to succeed.

”

Vincent, whose NFL career with the Washington Redskins, Miami

franchise systems

Chili’s. For better than

Dolphins and

often present ideal

half of his 25 years with Wendy’s,

Philadelphia Eagles spanned 15 years. Today he’s

opportunities for these

Bridgeman worked the lunch

Vice President of the NFL Player Engagement

former stars to get

shift almost daily to ensure he

and working to help ex-footballers learn more

started in business

knew as much as any employee

about franchise opportunities.

without requiring them

in his system. “If you’re going to

to re-invent the wheel.

be successful in this, you have

While most athletes are showered with business

to know what it takes to do the

opportunities after their careers, Vincent says

But that doesn’t mean

job. That’s the part that seems to

many make bad decisions unintentionally with

becoming a franchisee

escape people coming into the

their hard-earned millions.

is easy, says Ulysses

industry. Franchising provides

“Junior” Bridgeman, a retired NBA star for

Image courtesy of the Milwaukee Bucks.

great systems, but you still have

“It’s a lack of education and awareness, and we

to work them.”

want to help them with that,” said Vincent. He’s

the Milwaukee Bucks.

now leading the league’s partnership with the

Bridgeman, who became a Wendy’s franchisee

According to Forbes, Bridgeman is the 18th

International Franchise Association to form the

shortly before his 12-year career ended, says

wealthiest African-American in the U.S. and

NFL Franchising Boot Camp, which will launch April

successful franchisees are highly-active in

has a net worth of more than $200 million.

26-29, 2013, at the Ross School of Business at the

their businesses.

His exceptional success off the hardwood is a

University of Michigan in Ann Arbor. “These players

46

1851 MAGAZINE INAUGURAL PRINT EDITION

BIG shots

PEYTON MANNING

Image courtesy of Jeffrey Beall (Flickr member) Creative Commons Attribution license.

Image courtesy of Steve Lipofsky Creative Commons Attribution-Share Alike 3.0 Unported license.

Magic Johnson This Hall of Famer built his own Starbucks franchise empire before selling 105 of his locations back to the company, making a cool $70 million in the process.

Image courtesy of Tulane Public Relations (Flickr member) Creative Commons Attribution license.

Drew Brees

already are in the concept to get the unedited, unabridged version of the story. After that, I’d talk to others in the restaurant business and get

When he isn’t throwing touchdown passes for the New Orleans Saints, Brees fulfills his duties as the co-owner of a New Orleans Jimmy John’s location. Brees opened his second Jimmy John’s location this past summer and is reportedly looking to continue the expansion of the brand throughout the area.

their take on the brand.”

Both Bridgeman and Vincent acknowledged that franchising’s popularity among current athletes (Papa John’s signed Denver Bronco’s quarterback Peyton Manning, New Orleans have the resources and the desire to succeed, but

Saint’s quarterback Drew Brees is a Jimmy

they need direction. Over the four days of the boot

John’s franchisee, and Milwaukee Bucks forward

camp, they’ll get that.”

Drew Gooden is a Wingstop man) makes the opportunity more alluring. But as Bridgeman

Vincent said participants can expect individual

stresses, an athlete who merely invests in the

face time with franchisors, franchisees and IFA

business might not get the return or enjoyment

executives who can better explain their options.

he’s seeking.

Such an intense due diligence opportunity is a

“If you don’t have a passion for that brand,

blessing, Bridgeman says, because serious fact

definitely don’t get in it,” Bridgeman advises.

gathering is essential to making good choices.

“The restaurant business, especially, is like

Image courtesy of Angela N. (Flickr member) Creative Commons Attribution license.

Venus Williams Thirsty for a smoothie? Head to one of the tennis superstar’s Jamba Juice franchises, the second of which opened in July 2012 outside of Washington, D.C.

sports: competitive, people-focused and takes a “If I were counseling an athlete, I’d tell him

lot of hours to make it work. But if you find that’s

to talk to the brand he’s interested in first,”

the type of business that fits what you’re after,

Bridgemansays. “Then I’d talk to franchisees who

give it a shot.”

1851 PROJECT.COM | 2013 47

THE MULTI-UNIT MAN ADVICE FROM AZIZ HASHIM THE MULTI-UNIT FRANCHISING GURU.

By Nick Powills

AZIZ HASHIM

Founded in 1995, NRD If Aziz Hashim had a dollar for every time a new franchisor asked for advice on how to market their franchise opportunity to him, he might be able to retire from franchising.

The reason Hashim is asked so many questions is because he has a bullseye on his back.

Holdings, LLC, owns over 60 restaurants, including Popeyes, Domino’s Pizza and Checkers/Rally’s

After the franchise portals stopped delivering a constant flow of new leads and deals

Drive-In Restaurants. One

to franchisors, marketing strategies adapted and focused on the multi-unit franchisee

of the franchise industry’s

audience with hopes that a zee who could open three units at the same time, rather than one, would instantly provide great returns.

superstars, NRD’s Founder, President and CEO, Aziz Hashim, continues to be a leading multi-state, multi-

While true, once every franchisor started marketing toward that audience, the marketing strategies were no longer unique and became rather dull. Hashim founded NRD, a U.S. company, in 1996, with one QSR location and has since grown the company to over 60 restaurants, including several high-profile brands including Popeyes, Domino’s Pizza and Checkers/Rally’s Drive-In Restaurants, Inc. He expanded his portfolio with his international retail company, Dandle, Inc., and grew even more in 2010 as a franchisee of PetValu, a major pet supply franchisor in Canada. Hashim also serves on several boards including the Popeyes Foundation, the Multi-Unit Franchise Conference and the BB&T Bank regional advisory board. Hashim provided 1851 with tips for how to succeed as a multi-unit franchisee.

48

1851 MAGAZINE INAUGURAL PRINT EDITION

brand and multi-national franchisee. 1851 sat down with Aziz to learn more about what makes him tick.

ROI IS WHAT REALLY COUNTS

franchisees, especially if you have some strong

KNOW YOUR AUDIENCE

I don’t really look at the earnings claim. That’s just

credible players in that group. If there are

I don’t think franchisors think about who their

the claim and we all know there are ways around

credible people involved in the brand, it will help

audience is. If you are targeting the multi-unit

those numbers. The more attractive piece to talk

you validate your brand. However, I have never

audience and you have a sales guy who doesn’t

about is the true ROI. I don’t care if you are No. 1

bought a brand because someone I knew was

know how to talk to them, you are already

in category, or No. 1 in growth —what I care about

associated with that brand. That doesn’t enter

eliminating hope. If I were running my brand,

is whether or not I can make a return on

my discussion. If I know someone, I may pick up

I would divide my sales team in two: a multi-

my investment.

the phone and get some insight from them and

unit and a single-unit team. There is a different

use that franchisee as a form of reference, but I

approach to take with each of these groups.

SET REASONABLE GOALS

will ultimately circle back to ROI and discussions I

The single-unit person will want to go through

Don’t shoot for the sky right away. It took Fred

have with the senior people behind the brand.

the complete sales process while the multi-unit

Deluca (Co-founder of Subway) 10 years to get

person wants to go straight to the top. To me, the

to that first 200. Then they took off. Don’t try to

USE YOUR DEVELOPMENT WEBSITE

sales person I want to deal with is the CEO of the

open 100s every year if you don’t have the force

When it comes to your development website, use

brand. If the CEO refuses to talk with me, then

to support and perfect the model. Build your infrastructure and get the concept right before pushing the pedal too hard.

FALL BACK ON FUNDAMENTALS

it as a guide for quick reference.

Don’t shoot for the sky right away

that’s not the right brand for me.

A lot of brands don’t like to put up proprietary information, but at the end of the day, all of that information is accessible. I want to know the typical size of your real estate, your demographics, and your footprint. Those are

Go back to the sales fundamentals. Work hard

helpful to have at my fingertips. Don’t think you

and growth is not impossible. There are brands

are giving anything away, just make sure there is

out there that do a good job. You can see that

basic information for me to find.

the ones that do a good job are the ones that are constantly landing the big franchisees. Follow

PRESNTATION MATTERS

other brands.

I will look at any brand. In fact, I am constantly researching opportunities. Chances are, I already

THE TRUTH ABOUT DIRECT MAIL.

know who you are and know much of your sales

You know how you get junk mail at home and

information. Would I ever buy a start-up? That’s

throw it away? That’s the same with me and

tough. When a multi-unit person’s company is

the direct mail pieces that are sent to me from

larger than the company that is trying to sell

franchisors. In fact, my staff throws it away before

them, it makes it somewhat challenging because I

it gets to me. In my opinion, direct mail is kind of

have more experience than you do. On the other

a waste of time. I don’t think franchisors will get

side of the spectrum, newer brands represent

a bang for their buck with direct mail. I am sure

more opportunity and wide open territory. When

some of them get call backs and some leads –

I am talking with brands with fewer than 100

especially since so many do it–but if you are going

units, chances are the sales team is the CEO,

to reach a real multi-unit franchisee, I don’t think

which means, there is not a process in place to

mail solicitation is the way to go because we get

support me coming on board. Think about

way too much of it.

the way you present the opportunity. This

MARKET YOUR EXISTING ZEES

will be critical to

I think it’s OK to market to your existing

your success.

AZIZ HASHIM Image courtesy of The International Franchise Association

1851 PROJECT.COM | 2013 49

editorial sections / due diligence / industry calendar / franchise resources 1851 Magazine is a monthly online publication with themed issues released on the 18th of every month. New content appears daily, Monday through Friday. 1851 was created to fill a gap in coverage of the franchise industry by providing an online educational resource where readers find daily content from thought leaders, industry experts and entrepreneurs.

www.1851project.com | facebook.com/1851magazine | @1851magazine

ROAD WARRIORS

By Ralle Karadjov Gone are the inconvenient days of stationary desktops, handwritten Rolodexes and internet dial-up.

With the arrival of 2013, comprehensive technology has elevated the business environment in more ways than just texts and tweets. Our international economy thrives off new inventions and global gadgets that have truly changed the way we do business.

Traveling for work has become almost a necessity in order to reach new marketplaces, secure development deals and achieve brand name status. The key to a stress-free business trip lies with efficiency.

Technology has made business traveling much simpler, resourceful and effective. From noise cancelling headphones for long flights to phones that navigate to the nearest coffee shop, the tech world will continue influencing our global economy.

We’ve interviewed the franchise world’s top travelers for an inside look into their tech savvy bags to uncover their on-the-road necessities.

Steve Caldeira President and CEO of the International Franchise Association As President and CEO of the IFA, Steve’s job requires him to travel 35 percent to 45 percent of the year to speak, promote, and attend events on behalf of the franchise industry.

Recently, Steve has increased his internationally trips to include South America and Asia to connect with franchise sectors in these growing markets.

Tips for Travel Rest and exercise when you can, and don’t be afraid to ask a restaurant to consider making something that may be a tad healthier than what’s on the menu,” Caldeira says. “If you are respectful and let them know that you appreciate their consideration, most restaurants will work with you.”

Working while traveling is easy because I have an… iPhone You will never catch me traveling without...

1. Peanut Butter Cliff Bars 2. Gillette Fusion Razor Blades 3. Ambien

Jania Bailey President and COO of FranNet Jania travels around 30 percent to 40 percent of the year. Her job takes her throughout the United States, particularly for industry meetings in Las Vegas, Atlanta and Washington, D.C. Which electronics have made your life easier while working out of the office?

I could not live without my iPhone and iPad. They have made it so much easier to communicate when traveling. I love the fact that they sync with my computers so I’m always up to date.

Tips for Travel Try to stay up to date on e-mails and calls so that you are not buried alive when you get back to the office. Also, try to eat like you do at home to avoid big changes in your diet or sleep routine.

You will never catch me traveling without...

1. iPhone 2. iPad 3. Laptop

Jim Murphy Founder and Chairman of Afterburner, Inc. As the Founder and Chairman of Afterburner, Inc., Jim, or “Murph” as he goes by, travels two days a week on average.

With offices in Australia and Brazil, Murph has travelled domestically and internationally, including trips to Brazil, Portugal, Argentina, Singapore and Canada this past year.

Which electronics have made your life easier while working out of the office?

A magicJack phone hookup; once installed it creates a very lowcost international land line that worked great for me in Brazil.

Tips for Travel If you use the new slim design laptops, it’s best to carry extra software protection dongles, at least three packed in different bags. This way, if you’re doing a presentation and need a VGA hook up to the projector, you will be ready. Also, it’s best to always carry a backup presentation on a thumb drive in a separate bag or carry it in your pocket for a safe backup option.

You will never catch me traveling without...

1. iPad mini 2. iPhone 3. Laptop with plug convertors for International travel 1851 PROJECT.COM | 2013 51

Tips

Travel for

By Chris Powills

Booking travel can be a tiring and stressful

agents- with actual offices, and hopefully

experience. Understanding the best practices

helpful personnel, that would provide advice

of booking travel can help relieve some of

or help to book your trip in its entirety. And

that stress and can help save time and money.

then there are OTAs, or online travel agents,

Saving money and getting the best deal has

which are travel booking platforms that allow

never been easier with information that is

you to do most of the planning and booking

provided on the Internet. However, knowing

activities on your own.”

where to find the information and how to conduct the necessary research can be tricky.

Using a travel agent mostly depends on the traveler’s needs and preferences. Karadjov

There are many this to consider when booking

goes to explain that “in general, simpler travel

travel, including asking questions like when

(round trip, rental car and hotel) can easily

is the best time to travel? How can one find

be handled online. More complex travel,

information on airports? What are some

involving international, multi-city travel,

money saving tips for travel? These questions

stop-overs or a larger group of travelers, is

and more should be in everyone’s mind when

where traditional travel agents provide the

trying to book travel. Sometimes it is best to

most value.”

use travel agents throughout the process,

All statistics are from the U.S. Travel Association 52 1851 MAGAZINE INAUGURAL PRINT EDITION

but it is not necessary. According to travel

Flexibility can be another factor when

expert Yuri Karadjov, “Travel agents today

booking travel. Leisure travel tends to give

are not what they used to be only a few

the most wiggle room for travel dates. This

years ago. There are the traditional travel

can be used as an advantage if research is

Our favorite travel booking websites Kayak – www.kayak.com: Kayak’s website is clean, intuitive and able to pull prices from hundreds of travel sites for everything from flights and hotels to cruises and full-package vacations.

Travelocity – www.travelocity.com: We like Travelocity because of its partnership with Virgin Atlantic Airways for those times you hear London calling.

Google – www.google.com: The search engine does a fantastic job pulling rates for flights and other travel necessities. All you have to do is search for something like “Flights from New York to L.A.”

It is important to do research when booking travel. done right. Travelers should look to book

However, businesses can sometimes receive

the best thing is to check the airline’s website

corporate discounts that can even sometimes

for the baggage policy.”

be negotiated. With business travel, be weary, as “in many cases business travel is

A lot of information can be found on useful

subject to corporate policies, which dictate

websites. “Seatguru.com is one travel site

what type of travel agents or channels one is

which provides information about the good,

allowed to use, the class of travel (economy,

bad and ugly of each type of aircraft and

business, etc.), approved hotels and rental car

flights,” Karadjov said.

companies,” explained Karadjov.

ahead of time and buy based off of the trends

Websites like Airportplugs.com and Airpower.

of ticket pricing. “All travel vendors set their

The best way to find information regarding

jeffsandquist.com also provide travelers with

prices according to the demand and supply

rules and regulations, baggage fees and

possible places to plug in electronic devices at

situation at the time of the planned travel,”

information is to research via the internet.

airports. Both websites are still evolving and

said Karadjov. “If the demand is higher on

Rules and regulations comply with domestic

have recently added pictures for plug in areas

specific days, then the prices are likely to be

and international statues and standards.

at certain airports.

higher, and vice-versa. So it is worth checking

Baggage fees are usually listed on airline

alternative days and even times of the day

sites as well. “There are still airlines, such as

At the end of the day, it’s important to do your

for flights.”

Southwest Airlines, that do not charge fees

research when booking travel. Understanding

for check bags,” said Karadjov. “baggage fees

where to look on the web is essential to

When booking for business, the dates of

are also waived based on the traveler’s status

relieve stress and to find the best information

travel can be limited and it might be difficult

with airline and the travel destination. As

when booking travel, ensuring a safe and

to book on certain “alternative” days.

there is no standard that governs these fees,

comfortable journey.

1851 PROJECT.COM | 2013 53

WHAT TO KNOW ON THE GO

By Pari Manikas When clients are in town, it’s often a difficult decision to decide where to sleep, dine and drink. We interviewed some industry experts to give you a list of the best places to eat, drink, and stay in franchise hubs.

Expert Matt Haller

City

Places To Eat

Places To Sleep

Places To Drink

Washington, D.C.

Morton’s Steakhouse Pearl Drive Oyster Estardio

Willard Intercontinental JW Marriott The Washington Hilton

PJ Clarkes Round Robin Scotch Bar The Oyster Bar Off The Record Brasserie Beck

Atlanta, GA

New York Prime

The Intercontinental

Prohibition

New York City, NY

Hell’s Kitchen Patsy’s Dos Camino’s

The Marriott The Hilton The Hyatt

Red Lion The Bar at the Ace Hotel The Gramercy Park Hotel

Minneapolis, MN

MASA 112 Eatery Bar LaGrassa

The Hilton The W Graves 601 Hotel

Brit’s The Local La Bella Vie

Denver, CO

The Palm Elway’s Steakhouse

The Hilton Garden Inn The Marriott

Elway’s Bar

VP Public Affairs, IFA

Stan Friedman VP, North America Franchise Development, Tutor Doctor

Gary Occhiogrosso Chief Development Officer, TRUFOODS

Victor Salamone VP Franchise Operations and Development, Famous Dave’s

Stuart Mathis CEO, Quiznos

1851 PROJECT.COM | 2013 55

BEST CITIES TO OPEN A BUSINESS

By Jordy Patano Ever dreamed of becoming a small business owner and wondered what’s the best environment for a start-up? We’re here to help you figure out if a move is the right choice to spark your entrepreneurial spirit. Below is a list of the top cities that are the friendliest to new businesses. We took into consideration the growth of each city, impact that franchising has overall, tax-benefits and the overall acceptance of newly launched businesses.

1. Austin, TX Austin has been one of the fastest-growing cities for the past three years and it doesn’t seem to be slowing down. Austin is seeing an influx of new residents who are demanding new businesses to keep up with such tremendous growth.

Opportunity abounds here.

46.88 91%

The highest Small Business Vitality Score in the country.

Rate at which the population is rising.

136,900 Jobs created through franchising.

9,000 Current Franchises.

4,436 Workplaces provided through franchising.

2. Raleigh, NC Similar to Austin, the economic climate and continued population growth are the perfect combination to foster small business growth and corporate relocation. Raleigh has seen an upward population change that is expected to continue, and the city also maintains a strong and thriving economic market.

40.89 86.5%

Small Business Vitality Score.

Rate at which the population is rising.

55,000 Jobs created through franchising.

3,700 Workplaces provided through franchising.

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1851 MAGAZINE INAUGURAL PRINT EDITION

3. Houston, TX Texas and its major cities have continued booming, and Houston is no different, with tax benefits for business owners and a positive environment for hiring.

37.48

The highest Small Business Vitality Score in the country.

50%

Rate at which the population is rising.

211,800 Jobs created through franchising.

5,300 Current Franchises.

4. Salt Lake City, UT With highly-favorable business conditions and room for growth, the Salt Lake City-Provo area is experiencing an influx of residents as well as new business headquarters, where residents can experience both the benefits of the West in an urban environment.

33.10

Small Business Vitality Score.

66.9%

Rate at which the population is rising.

90,000 Jobs created through franchising.

2,956 Workplaces provided through franchising.

5. Atlanta, GA Atlanta is a hub for both Fortune 500 companies and some of the biggest franchisors in the industry. Not to mention the state government is creating a welcoming environment to corporations looking to expand their presence.

33.10

Small Business Vitality Score.

67.8%

Rate at which the population is rising.

362,900 Jobs created through franchising.

10,370 Current Franchises.

1851 PROJECT.COM | 2013 57

GO WITH THE FLOW: GREG TANNER

By Nick Powills If you don’t know Greg Tanner by now, you must have been hiding under a rock. Tanner is the king of awareness and leveraging within the franchise community. While he serves as the National Director of Franchising for Aaron’s, a leaseto-own appliance company, he is better known for taking punches at non-direct competition with mock logos. He is also the author of his personal guide to franchising, which he has rightfully named Tannerisms. 1851 caught up Tanner while driving the back roads of Georgia on his way home from another day on the job.

NP: Greg, I couldn’t think of anyone better than you for the launch of my “Go with the Flow” column.

GT: Is that flattering?

NP: Of course it is. You are king of Tannerisms.

King of knowledge. King of franchising.

GT: Ha. That’s not that hard to accomplish.

NP: I know you have told me this story a million times. Literally a million times. But tell it to me again. What’s the story with the napkin?

GT: Well, it launched my career with Aaron’s. I got a call from Doug Kushell (www.franchisesearch.com). He called

and said, “Hey Greg, I think I got someone who may be interested in hiring you. Do you have a resume?” Hell, I hadn’t made my resume in 20 years. So, I said, “Here’s what I will do, I will jot something down on a napkin and fax it over to you cause I am at a hotel bar and that’s the best I can do.” So, I jotted down some BS information, not expecting it to go very far, went to the hotel fax machine and sent it to Kushell. Next thing I knew, I was getting hired at Aaron’s. That napkin really got me where I needed to go and he still has that napkin framed in his office.

True story.

GT: Yeah. I told Kushell that people should only judge you on one thing in the franchise industry: have I made more money every year of my career? All that sophistication BS, the strength in marketing and blah blah blah, doesn’t mean (donkey).

More money every year means he knows how to sell franchises. You read resumes about these damn development guys who claim to have grown brands and their resume looks like they could launch a rocket somewhere. Yeah right. You should always evaluate on whether or not the person has made more money every year of their career.

through the garbage?

GT: Exactly. You can analyze every key word on a resume, but the facts are the facts.

1851 MAGAZINE INAUGURAL PRINT EDITION

GT: If you listen to a lot of the presentations of people who supposedly know what they are doing, they use a lot of different terminologies, like metrics or critical mass. What the (donkey) are they talking about? The bottom line is it is all about building relationships, being able to recruit and provide great information to a poor fellow looking to make the right decision.

NP: You are personally branded. Why?

NP: That easy huh?

NP: Money helps you cut

58

NP: Over the last few years, has franchise development gotten worse or better?

GT: Walk through the IFA [International Franchise Association] convention and ask people if they know me. I am Tanner branded. People know Greg Tanner. Personal branding helps create awareness of the opportunity.

NP: You used Tannerisms to personally brand yourself.

GT: Yeah. I saw it as a stepping stone to be able to start the branding process. You become an authority as an author. I haven’t written anything that will turn into a movie or a pay-per-view TV special. All I created was a source for prospective franchisees to learn some insight into the purchasing process and for the franchise community to have no question as to who I was.

NP: Do your prospects read it?

GT: Aaron’s is a million dollar investment. People need to wake up and smell the roses. It’s about breaking down the walls and building a personal relationship. Think this book helps? I am a rare bird in this industry. But, I have fun doing it. I find the humor in everything I do.

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1851 PROJECT.COM | 2013 59

WE DID IT!

Safeguard exceeds $100 million in business acquisitions and mergers While others are slowing, the Safeguard franchise network is growing. Through the acquisition of independent businesses and resale to existing Safeguard franchisees, the Safeguard enterprise continues to expand in a monumental way. And it’s just the beginning.

If you’re looking to find an organization that provides unparalleled, growth-focused resources to its franchisees, look no further than Safeguard. Whether you’re interested in buying an existing business from Safeguard, or starting your own organization from the ground up, contact us today.

Deno Scoular, CFE Director of Franchise Development, East Region

R. Scott Sutton, CFE Vice President

Donald Averitt Director of Franchise Development, West Region

Kevin Derella, CFE Executive Director of Franchise Development, Canada

Safeguard, through its network of franchisees, has been providing the products, services, and expertise needed by business owners to help their businesses grow. Through innovation, dedication, and a commitment to quality and integrity, Safeguard has transformed itself from a small check printing business to a fully diversified Print, Promotional, and Web Services enterprise.

This information is not intended as an offer to sell, or solicitation of an offer to buy a franchise. It is for informational purposes only. © 2013 Safeguard. All rights reserved.

Connect with Safeguard at 1-800-338-0636 or visit us at www.safeguarddevelopment.com

@safeguardgrowth