Pillars of Franchising magazine Issuu 8 January/February 2023

Recharge. Reinvent. Reboot.

Dear Pillars of Franchising Community:

This month, we are talking about those in the franchising world who inspire us with their abilities to recharge, reboot and reinvent their careers/businesses. This was particularly poignant for me recently as I faced some personal challenges at the time we were supposed to publish. My father had a heart procedure, and I just couldn’t get it all done. So, I had to make a decision to push this issue to January. As a recovering perfectionist, I beat myself up a lot over my own (real or perceived) failures or shortcomings. And the stories of those covered in our featured articles reminded me that you just have to keep pushing and get it done – even if that means showing yourself a little grace. I know their stories will inspire you as well.

The cover story features Laura Spaulding who has faced obstacle after obstacle. And she NEVER GIVES UP. Learn how she has made her business successful by overcoming time and time again. Our other feature covers the Dallas Initiative spearheaded by Carlos White out of Dallas. He is working to bring franchising to underserved areas of the city and to train and empower minorities to own businesses and create their own success.

In our regular departments, we continue to follow Ray Pillar in The Life of Ray to show others how a successful franchise business can give you the life of your dreams. I got to catch up with Ray and his wife, Daisy, when they traveled to my neck of the woods – check out our time together!

As usual, we have a jam-packed issue with our regular contributors and our Million Dollar Mentors, Kristin Selmeczy, Jerry Akers and Ray Pillar who share their perspectives on buying a franchise.

We also have informative articles from Nancy Friedman, the Telephone Doctor, on customer service; Susan Scotts on franchise education; Michele Rempel on marketing; Harold Kestenbaum on legal issues; Benetrends on funding; Citrin Cooperman on tax/ finance; Andrea Mundie on women and finding balance and more!

Join us on our social media, subscribe on the website and join us every Thursday at 4:00 CT for the Pillars of Franchising live stream! We look forward to serving you, and remember…

The Dream Starts Here!

Elizabeth Denham Editor-in-Chief

PILLARS FRANCHISING OF

January

CALENDAR

February 2023

Monday Tuesday Wednesday Thursday Friday 1 2 4:00 CT Pillars of Franchising Livestream

3 6 7 9:30 CT

Caffeinated Connects – Networking

8 9 4:00 CT Pillars of Franchising Livestream

10 13 14 9:30 CT

Caffeinated Connects – Networking

15 16 4:00 CT

Pillars of Franchising Livestream

17 12:00 CT So, You’re a Franchisee. Now What? –Lunch & Learn 20 21 9:30 CT

22 23 4:00 CT

Caffeinated Connects – Networking

of Franchising

Success Found in Starting Over:

Laura Spaulding

by Johanna Selmeczy, Staff Writer

If there’s one thing Laura Spaulding knows, it’s overcoming hardship. From her military discharge after being outed during “Don’t Ask Don’t Tell,” to having to work her way through college after being ostracized by her family, to being denied business loans solely because she was a woman, Spaulding has faced a seemingly endless series of trials and tribulations. In spite of these struggles, she has built a successful life for herself as the Founder and CEO of Spaulding Decon, a crime scene cleanup business that has grown to 47 units over the course of six years.

Entering the Franchising Space

Spaulding has dealt with starting from square one multiple times in her life. After being ousted from the military, she spent seven years in law enforcement, where she realized there was a need for a professional cleaning service for crime scenes. The task wasn’t something the police had to deal with, but she knew that she was fully capable of starting a business to do that work.

Unfortunately, Spaulding quickly found that money was an issue when it came to getting her business off the ground. She bootstrapped her way into Spaulding Decon, and when it came time for growth, she realized that

without the same funding her male counterparts were able to access, she would have to utilize the franchise model in order to find success.

“The problem was that no one was offering me any money to do it,” Spaulding said. “So, I had to grow with other people’s money, which meant franchising.”

A Rocky Start

At the beginning of Spaulding’s franchising journey, she encountered a common challenge experienced by franchisors: finding the right franchisees.

“Yeah, I think that the most difficult part for new franchisors is the fact that they don’t have a playbook to see what the best franchisee is, the best type of character and person for (their) brand,” Spaulding said. “And I’ve heard from many, many (franchisors) that you’re so excited for the first dozen, but then by year two you can’t wait to get rid of that first dozen because you realize they were all mistakes.”

Some mistakes can burn more painfully than others, a lesson Spaulding learned quickly after dealing with franchisees who

“ We change a lot, we evolve, and I just didn’t view it negatively at all

openly stole money from the brand, an obviously terminable offense. After being terminated, however, some former franchisees created competing brands in the same region to threaten Spaulding Decon’s locations, even if a noncompete clause was included in the franchise agreement.

“Then the problem is, you have states like Georgia where even if you have a noncompete, you can’t enforce it. So, then they’re going to start to compete against your future franchisees that take that spot,” Spaulding said. “I don’t know anybody who hasn’t made a mistake in hiring.”

Spaulding has had to juggle making corporate decisions focused on the betterment of the brand as a whole and listening to complaints from franchisees about their local issues. She describes organizing biweekly

calls with franchisees to inform them of corporate decisions and being shocked by the way the franchisees thought that the matter was up for debate.

“This is not a democracy. This is what we’re doing for the greater good of the brand, and we’re just letting you know about it,” Spaulding said. “And it’s really weird how they think that because they’re part of a franchise, that means that this is a democracy.”

Regrets and Advice

Looking back on her hiring mistakes, Spaulding wishes she had invested in a third-party company that specialized in franchisee vetting to avoid franchisees who didn’t align with her values and goals.

“They know exactly what they’re doing. They know what they’re looking for. They know the red flags. They could’ve helped me avoid all these mistakes in development,” Spaulding said. “So, I am just kicking myself in the ass that we didn’t do this six years ago when I started.

“So, my advice to a brand-new franchisor would be: Listen, you don’t know what you don’t know. You need to hire people that know that, and if you use a third-party company that specializes in this, they’re compensated when they sell territories so it’s not like you’re out a ton of money. And this will teach you, at the same time, and hopefully, you’ll avoid the mistakes.”

When it comes to hiring a third-party company for selling territories to competent franchisees, Spaulding warns against companies that seek equity in the company as a whole in exchange for their services.

“I would say avoid the companies that want equity in your business and go with the companies that just take a portion of the territory fee,” Spaulding said. “Because then you’re not strapped, if you grow into some gigantic company then you didn’t just give away all your equity… I’d rather pay them for performance.”

Another piece of advice Spaulding offers is to be flexible about whom you’re working with. Just because someone has filled the same role for over a decade doesn’t mean they could be better suited for another role or no longer fit with what the company has become.

“But as you grow, you’re going to outgrow people,” Spauld-

ing said. “Just like even if you’re dating someone, you know when you date someone in your twenties, you guys might not be aligned when you’re thirty. You might outgrow that person. We change a lot, we evolve, and I just didn’t view it negatively at all.”

When it comes to communicating with franchisees, Spaulding’s strategy is to create a layer of management who can filter what needs to be addressed by her and what can be addressed by others. She has learned that it can be distracting from the big picture of successfully growing the business if she gets caught up in the day-to-day.

“To be honest, another thing that I’ve learned too is that layers of management between me as the CEO and the franchisees helps me to keep my eye on the prize and not get off track with the vision and the goals,” Spaulding said. “I can pay people to manage day-to-day issues…so it doesn’t disrupt my momentum. I want to focus on the bigger things.”

Lessons Learned and Future Plans

Looking back on her experience thus far in franchising, Spaulding has come a long way. Her mistakes have become lessons, and her advice is backed by decades of experience in the field.

“I’ve learned how to hire, how to vet people, even though that’s

not an exact science,” Spaulding said. “But it’s just kind of a new business and I learned and met new people. It just opened my eyes to a world and other people that I never would have had the chance to run into.”

Going forward, Spaulding is looking forward to hiring a third-party company to assist in the franchisee hiring process. She hopes to reach 100 locations in two years, which, with trustworthy franchisees, is a more than an attainable goal.

Where others may have given up when the going got tough, Spaulding stuck it out. For Spaulding, her personal work ethic is shaped by a determination to succeed in spite of everything stacked against her.

“I think it’s really defiance, honestly,” Spaulding said. “This sounds negative, but I feel like sometimes the odds are always against me. It’s always a battle, and I’m determined to win that battle, even if it’s a small battle. And I wish every single thing in business and in life wasn’t a battle, but it actually has been… I don’t view it as ‘woe is me’ I view it as ‘okay, this is another test, let’s see how we can handle it.’”

For Spaulding Decon, that philosophy has worked thus far, and the future looks very bright (see sidebar).

Social Media and Exposure

Boasting over 4 million followers and 37 million likes on TikTok, half a million followers on Instagram, and 51 million views on YouTube; Spaulding Decon is certainly a social media force. Posting videos of teams cleaning up gruesome scenes has garnered quite an audience for the brand. Spaulding herself has appeared on the brand’s social media pages, describing her experiences to millions of viewers.

Check out her social media below:

TikTok - https://www.tiktok. com/@crimescenecleaning

Instagram - https://www. instagram.com/crimescenecleaning/ YouTube - https://www.youtube. com/c/crimescenecleaning

Recharging Your Online Footprint

Tricks and Tips

by Katie Bateman

How often do you check your social media accounts? If you don’t, you might want to consider checking them at least once daily or twice weekly. This way, you can see what your followers are saying about you and your brand.

Social media has become a powerful tool for businesses to reach their target audience. As such, it’s important to monitor your online presence regularly. The good news is that you don’t have to spend hours each day checking your social media accounts. There are several apps out there that allow you to manage your social media accounts from anywhere.

You can also use these tools to track your competitors’ activities. By monitoring their posts, you can get insights into their marketing strategies. For example, you can see whether they are using paid ads or organic posts.

But despite their popularity, social media sites also pose risks. In recent years, several high-profile companies have suffered from data breaches, exposing personal information belonging to millions of customers. This has led to increased regulation and stricter security measures. Here are some tips and tricks to recharge your online footprint. Recharge your Facebook account

Facebook is a great way to stay connected with customers and potential clients. However, if you haven’t been using it lately, you

may find yourself feeling disconnected. If you’re not getting any notifications about what your clients and customers are engaging with, then you need to make sure you’re recharging your Facebook account. Here are some ways to get back on track:

• Check out old posts. You might have missed something important while you were busy doing other things.

SPON

• Look at recent industry-related events. Are there any big news stories happening?

• Read comments. Competitors and clients often post interesting articles and videos on their walls.

• Watch videos. There are lots of videos online.

• Join groups. Groups are a good way to connect with people who share similar interests.

• Follow pages. Pages are a great way to keep up with current events and trends.

• Take advantage of Facebook Live. Facebook Live lets you broadcast live videos directly to your followers.

Katie has been the face of FranchiseShow247 which is one of the many platforms under the VirtualExpo247 umbrella. FranchiseShow247 is an online community that showcases franchising advice, support, and opportunities. A community where there are no restrictive financial barriers to exhibiting. A virtual exhibition platform where all companies have equal status and a place that is accessible 24/7 anywhere in the world. A place to help with exposure and brand awareness.

About Katie Bateman

• Use Messenger. Messenger is a great way to communicate with customers and potential clients having to leave Facebook.

Recharge

your Twitter account

Twitter is a great place to follow conversations about industry-related topics. But if you’ve been spending less time on Twitter than usual, you could be missing out on some interesting content. Here are some tips to help you get back on track:

• Search. Searching for keywords related to your business interests will give you a list of results that you can read.

• Browse trending hashtags. Hashtags are words or phrases preceded by the pound sign. These tags are commonly used to categorize tweets.

Recharge your LinkedIn account

LinkedIn is the world’s largest professional network on the internet. To get back on track, here’s what you need to know about recharging your LinkedIn account.

• Upload consistent profile images about your company, whether it’s your office, products, services, or even your team

• Describe what you do. Provide a brief description of

your services or products and how the company started.

• Showcase your events. Place posts up about what company events you are holding or attending. It’s great to keep engaging with your followers on what you are doing and where you have been.

• Plan great content to engage your audience. Industry-related topics are great to share and also to comment on other people’s posts to share views.

• Pay to promote. If you haven’t thought about it, it may be worth looking into how to promote posts on LinkedIn and other social media accounts.

• Attract prospective employees with tailored information. Create posts that attract engagement and start up conversations.

• Harness your employees’ LinkedIn following. Sharing company profile on LinkedIn with employees and encouraging them to share posts with their followers too.

Recharge your Instagram account

Instagram is a photo-sharing app that lets you post pictures and videos. It’s a popular way to stay connected with family and friends, and even build a following of people interested in your brand. Here’s how to recharge

your Instagram account.

• Optimize your profile. Make sure your posts are engaging and powerful. Instagram is a very visual social media channel, so images are key to promoting your business.

• Find your visual aesthetic. Make sure your content style is consistent but also up to date with current times. You can do this by keeping the branding the same but updating the format of your posts. Experiment with different content types, Canva is fantastic to use for branding and creating posts on all social media accounts.

• Post consistently. Are you posting consistently so your followers are up to date with company information, products, and service?

• Leverage hashtags to reach new audiences. Same way as Twitter, take time to look at hashtags that are trending.

• Engage with your community. Make sure you are not just posting and make sure you are commenting and liking followers’ posts.

All these tips and tricks are great to keep your online footprint recharged. Analyzing results from social media accounts is a great source of information and helps you re-evaluate your marketing as well as look at trending industry-related topics.

RECHARGING YOUR CAREER

by Susan Scotts

Who doesn’t need to recharge at some point during the workday?  Even our cell phones run out of juice. For a human, whether it is just taking a breath in between projects to clear your mind or getting up from your computer to stretch your legs and take a break from the constant barrage of incoming emails, it’s important to reenergize.

We take such good care to recharge many things in our lives; have you ever contemplated recharging your career?

I don’t mean going from job to job. I see that every single day:  people feel like they will be treated better by another company only to take a pay cut and after a year end up in the same place being treated the same overpowering way by their new boss.  Could it be time for you to go from that type of circular employment experience to actual empowerment, by taking action in a different direction in your career?

Sometimes making a change or allowing yourself to explore what’s possible, stops the definition of insanity--continuing to do the same thing over and

over again and expecting a different result.

So many of us are tired and battered, feeling unfulfilled at our current jobs. We are always worried about job security and feeling like we have no real control over our day and certainly not our future.  Worst of all, almost all W-2 employees have to prioritize their jobs over their families with extensive travel, daily commutes or exhausting overtime. Have you ever felt like you had no control of your destiny? If you worry about aging out of your position,

are not quite sure what’s next for you or are not making the income you want, read on!

It could be time for Your Career 2.0, to begin to explore other possibilities that allow you to work virtually from anywhere or have a flexible schedule that builds your business around your life instead of the other way around.

If you enjoy leadership, helping other people and the idea of leveraging your management skills, you may want to consider becoming self-sufficient as a Career Ownership Coach (yes,

“

We take such good care to recharge many things in our lives; have you ever contemplated recharging your career?

there is such a thing!) Coaching could allow you to meet your personal and professional goals while helping others by making a positive impact in their lives as well as their local community. Perhaps you might enjoy the idea of having no employees to manage (no one to say their car broke down or their kids are sick!)

You might like the idea of a home-based business so you can take the dog for long walks throughout the day, be there when the kids get home from school or even to be able to attend your children’s soccer games. Maybe joining that golf

league or tennis team (that you could never commit time to with an 8-5 job) is more your style.

Whatever your dream career may look like, taking a moment to pause - like placing your phone on its charger- and reflecting on what you want could help you recharge and regenerate your current mindset and allow you to learn about a new option that could breathe new life into your current career.

If you’re ready to reenergize your life through your career, let’s connect for a 10-minute, life-changing call today!

Susan Scotts is a multiple award winning career transition coach with The Entrepreneur’s Source® and possesses three decades of experience in helping empower individuals to become entrepreneurs through franchise business ownership. For a complimentary consultation, she can be reached at 561-859-9110 or SScotts@EsourceCoach.com

Selling My Franchise or Buying Into an Existing Franchise?

by Harold Kestenbaum

If you have made the decision that now is the time to exit a franchise, you need to accomplish three critical things before placing your business on the market. If you are interested in buying an existing franchise, it’s also important to understand these three factors because it can affect how you move forward.

1. Discuss Future Plans

First, you should discuss with your franchisor what your plans are. All franchise relationships eventually come to an end. You are probably not the first and won’t be the last franchisee to exit the system. You have used the franchise system, brand, and people to build your business. Don’t be afraid to use them to exit. They have a critical interest in a successful transition. Use them to help you close the deal. If you have a specific reason why you think telling the franchisor will compromise your exit, then you should discuss

they have to fight to get as a sign of trouble and it will break down the trust between you. Not only will it potentially affect your value, but it will also cause unnecessary delays.

In a small business transaction, the trust between the buyer and seller is critical. Without trust, the deal will not happen. The way you can build trust is by having all the documents readily available for any buyer who is serious about making an offer. You need to tell a story to the buyer, and that story has to be validated by documentation.

shouldn’t sell until the business grows into the price you want.

Buyers of small businesses always have to make a leap of faith, similar to the leap you made when you got into the business. You need to convince the buyer why this transaction makes sense. If you are really ready to sell, have prepared a well-organized and thorough package and have pre-qualified your business for financing, you will have a better chance of selling your business on your own terms.

that with your franchise attorney. If you don’t have an attorney that you are comfortable working with, please give us a call for a free initial consultation at 215-544-2972.

2. Gather Documentation

Second, you need to gather documentation and clean up any inconsistencies, errors or omissions in your paperwork. The list is extensive, and you can never have too much documentation. Buyers will take lack of documentation or documentation

3. Understand Financing Options

Finally, you should see what, if any, financing will be available for a buyer. This should be done before you even list your business for sale. Talk to your business broker, attorney, accountant or franchisor to get some recommendations on financing sources to pre-qualify your business. Not only will this make it easier to sell the business, but it will also be a great reality check on your price. If the price can’t support financing, then maybe you

Harold L. Kestenbaum joined Spadea Lignana in 2019, having unrivaled experience in the franchise industry and in franchise law. He founded and served as President and Chairman of the Board of FranchiseIt Corporation. Harold also authored the first book dedicated to the entrepreneur who wants to franchise called “So You Want to Franchise Your Business.” Contact Harold at hkestenbaum@spadealaw.com or call at 215.774.3365 x136.

Buyers of small businesses always have to make a leap of faith…

“

Refining Your Brand

Storytelling as a Franchisee

by Michele Rempel

As a franchise owner, you may feel that your business’s brand story is already written for you — and you would be correct, to a point. After all, one of the advantages of owning a franchise is that the brand has already been established and may even be well-known to your community.

However, you are still able to develop strong and effective “brand storytelling” for your own franchise to increase your customer base and loyalty. Not sure about the difference between “brand story” and “brand storytelling”? Let’s define these terms.

In a nutshell, your brand story is an emotional-based narrative of how your service or product(s) improve the lives of your customers in some way. It is a collection of words — such as those on your website and marketing materials. But it is also a collection of emotions and feelings that form your customers’ perceptions. A brand story could be your guiding principle and impact every part of your organization. Your brand story is important in generating new customers and can ensure that they keep coming back.

Brand storytelling is everything your company does to communicate with your community, prospects and customers.

Great brand storytelling...

• Communicates your brand’s values

• Uses evidence and facts that are told in engaging ways to really bring your brand to life

• Is a combination of testimonials, true stories and engaging content from leadership, employees and your customers

• Makes an emotional connection

A brand story that often comes up as a shining example is TOMS, the shoemaker. In their own words, TOMS founder Blake Mycoskie pioneered the One for One® model in 2006 — giv-

ing away one pair of shoes for every pair sold, supporting larger health, education and community development programs through strategic partnerships. This is their brand story. Were it not for their intention to communicate their story and its effects on those it benefits (https://www.toms.com/us/ impact.html) in a consistent and intentional way, they probably would not have built up such a loyal fan base.

The key to effective brand storytelling is a plan of action combined with consistency and frequency. Here are some tips to help you improve your content strategy and increase engagement.

Brand storytelling is everything your company does to communicate with your community, prospects and customers.

Gather up those testimonials and share them! Encourage customers to send feedback and post reviews about how your business improved their lives in some way. Your franchise may already have an effective plan for review collection, but are you sharing this feedback on social media? You might even consider asking a few customers or clients for video testimonials.

Find a local cause that you believe in and include them in your brand story. Your franchisor may have a cause already chosen, but that cause may have a more local arm that you can support through giving, sharing and highlighting in your own marketing. For example, Molly Maid created the Miss Molly Foundation to give back to those who

have been victims of domestic violence. It is up to the individual franchise owners to create a relationship with a local shelter or organization that helps these people in need and determine their level of support. Those franchisees who take the time to collect money and items that the organizations need, as well as highlight the good that is being done, see their marketing efforts go further.

Share your “why”. Why does your company exist? Hopefully, it’s bigger than selling food or cleaning houses or repairing vehicles. When you determine YOUR “why”, make a point of telling that story through your marketing. Your franchise may have a good brand story that talks about the “why”, but as a

franchisee, you should also be able to communicate the reason you and your staff are involved in this business.

Michele Rempel is the founder and managing partner of Westvyne, a marketing and website design firm based in California and Illinois. For almost a decade, she and her team have been guiding their clients in what to say, how to say it, where to say it, and who to say it to in order to attract and retain customers. For more information about Westvyne, visit www.westvyne.com

TRAINING THE NEXT FRANCHISE GENERATION

THE TITUS CENTER FOR FRANCHISING AT PALM BEACH ATLANTIC UNIVERSITY OFFERS A CONCENTRATION IN FRANCHISING.

The Center’s distinctive features include:

• Four college courses with a franchise internship that lead to a Concentration in Franchising

• Franchise professionals who visit campus frequently to speak with students

• A 60-member Advisory Board that provides ongoing student coaching

• Scholarships specifically dedicated to franchising students

• The Kobel Challenge, which provides substantial funds to help graduates buy franchises LEARN MORE: TitusCenterforFranchising.com

LEFT: DAVID WILD, DIRECTOR OF FRANCHISING, SLOAN’S ICE CREAM

RIGHT: MICHAEL SCALIA, FRANCHISING INTERN

A New Franchise Initiative in Dallas to Increase Economic Inclusiveness

by Johanna Selmeczy, Staff Writer

In Dallas, Texas, a new franchise initiative is being launched by Mayor Eric Johnson to continue to position Dallas as a global corridor for franchising and leader in helping to create and scale diverse franchise businesses in Dallas. The franchise initiative will have a specific emphasis on southern Dallas, the most racially and ethnically diverse area in the city. Heading this project is Carlos White, Franchise Impact Ambassador for the office of the mayor and the chair of the advisory board for the initiative.

Why It’s Necessary

Increasing entrepreneurship and development in southern Dallas will create more economic development opportunities, jobs, and consumer choices in the area.

“These outstanding advisory board members understand that if we truly want to grow southern Dallas, we cannot afford to treat half of our city solely as a real-estate play,” Mayor Johnson said in a press release regarding the initiative’s board members. “We must invest in the people of southern Dallas and strive to increase economic activity and

entrepreneurship in every part of our city. Together, through our relentless approach to strengthening our city, we will make all Dallas communities more vibrant and more equitable.”

Now, it’s time for franchising to expand its scope and include those that have been neglected in the past.

“I am grateful to Mayor Johnson for this opportunity and for his relentless focus on increasing entrepreneurship, economic development and workforce development in southern Dallas,” White said in a release by the City of Dallas. “Through the May-

or’s Franchise Initiative, I know we can make a real difference in the lives of Dallas families and in our communities.”

A Brighter Future

Going forward, this development will hopefully result in economic improvement for working families in southern Dallas. Mayor Johnson is optimistic and resolute in his plan to make the Mayor’s Franchise Initiative result in lasting change.

“We’ve made workforce development a top priority for the first time in our city government’s history,” Mayor Johnson said in

a press release. “And through the new Workforce Dallas initiative led by my workforce development czar Lynn McBee, and through the Mayor’s Franchise Initiative led by my Impact Ambassador Carlos White, we must take the opportunity to build a business ecosystem that can make a difference for working families in our city.”

White is also optimistic about the future of southern Dallas with the initiative. With diverse and experienced board members from a variety of sectors in the franchising sphere, White hopes that Dallas will become a leading player in the utilization of the franchise model to facilitate economic inclusivity.

“This advisory board’s expertise and experience will be invaluable to our exciting efforts to increase franchise business activity in Dallas and having southern Dallas as the epicenter for the Mayor’s Franchise Initiative

further underscores the fact that Dallas is a global leader in franchising and economic inclusiveness,” White said. “I look forward to working closely with the mayor and advisory board to help grow our city and its people.”

About Carlos White

Carlos White is an HBCU-bred, Ivy League Law-trained business optimizer and franchise developer with over 15 years of experience in franchise and distribution law. Carlos counsels businesses — from startups to mature companies — in all matters relating to franchise and distribution systems. Carlos helps clients understand the value and indispensable part that legal strategy plays in sustaining and growing their concepts. Carlos has helped clients create dozens of franchise programs and strategic distribution and licensing arrangements, both domestically and internationally, across numerous sectors of business.

Outside of work, Carlos enjoys traveling and studying 20th-century U.S. and sports history.

Representative Experience

• Domestic and International Commercial Arrangements

• Represented a multi-billion-dollar hotel company in restructuring U.S. franchise program and establishing a franchise program in Mexico.

• Represented a multi-bil-

lion-dollar hotel/hospitality company in establishing franchise and distribution networks in Australia, Barbados, Singapore, Russia, and Thailand.

• Represented an international real estate company in establishing a distribution network in China.

Corporate, Private Equity and M&A

• Served as lead franchise counsel on $650 million sale of oil services company.

• Represented management team of consumer product company in connection with $1 billion private equity transaction.

• Represented a multi-billion-dollar company in sale of restaurant concept to San Francisco–based private equity firm.

Operations

• As in-house counsel, oversaw workforce expansions from 110 to 600 employees, total revenues from $80 million to nearly $400 million, and customer count

from 5,700 to 25,000+ in a two-year period.

• As in-house counsel, developed customer-driven automation processes allowing customers to obtain certain compliance reports and documentation about the company’s infrastructure while protecting the confidentiality of such reports and documentation.

• As in-house counsel, trained sales staff on the company’s customer-related agreements.

If you would like more information about the Dallas Initiative, please contact yourdream@pillarsoffranchising.com, and you will be connected to the right contact.

The ABCs of Franchising...

ACCUSING, BLAMING and COMPLAINING

by Nancy Friedman

Many offices we see — both large and small — seem to have three personalities. Those are the folks who accuse, those who blame and those who complain a lot. It is no fun being around them, and it is certainly no fun working with them. They can be totally exhausting.

But when we understand them, it is easier to coach them into a bit more positive behavior. Some are tougher nuts to crack than others, but let’s take a look at each of them and see if we can at look at ways to move the needle. It is difficult to change habits, isn’t it? But it can be done. Just by changing a few words around.

THE ACCUSER

Accusing. Ah, that is so easy, isn’t it? To ACCUSE someone. “BOB did it. Not me.” Let’s take a simple thing. A non-threatening situation. An everyday happening.

Let’s say my stapler is missing off my desk. It’s not where I left it or where it should be. “Who took my stapler?” is accusing of someone. Not meaning to be. But that is an accusatory statement.

NON-ACCUSING: “Has anyone seen my stapler?” Or “Anyone know where I might have put my stapler?” Sounds a little better, right?

See the difference? One is accusing and one is taking ownership. Plus, the person who might have taken the stapler usually is very forthcoming with apologies.

Accusing people without double checking can be extremely dangerous and cause unnecessary trouble, irritation and frustration. Be a double-checker on everything.

BLAMING

Again, keeping it simple. While accusing and blaming sound similar. They are not. Blaming can be items vs. people.

EXAMPLE

The blamer says: “Wow, I’m gonna be late because of the snow that’s supposed to be heading out our way.”

Responsible person says: “I will leave a bit earlier tomorrow morning. If the snow comes, it could make for bad traffic and I don’t want to be late for work.”

Do we blame the snow? Why? See the difference? We blame ‘things’ as well as people. We blame weather. We blame objects. Items that are not even able to defend themselves. Stop

being a blamer and take some ownership. Be responsible!

Blamers often and usually do not really have all the facts. Sometimes we need to be detectives.

COMPLAINING

How many times in JULY do you hear “Jeez, it’s hot today”?

CUST

Well, guess what? It is JULY in New Orleans. Or St Louis. Or Miami. It gets hot in the summer. And FYI, it gets cold in the winter if you live in wintry-weather country. Why complain about the obvious things you already know?

And this happens too. I can’t stand it when someone complains about…let’s say… having a headache and I ask them if they have taken anything for it to

reduce the discomfort. Answer: “NOPE.” Then why complain? If you are not doing anything to help yourself, do not complain!

Here are some recent ABCs that happened to me.

• Store: (Accusing: On why they couldn’t find my information.) “Your files aren’t linked.” (This after a 30-minute wait because the salesperson couldn’t find my file on their computer.) He made it sound as though it was MY FAULT!

• Pharmacy: (Blaming ME on why my RX wasn’t ready and in an unpleasant voice at that.) “Did the doctor tell you this was a special com-

pound?” Like it was my fault the doctor didn’t tell me.

• Retail: (Complaining salesperson to me.) “It’s so busy today, I haven’t even had lunch.” He is forgetting “BUSY IS GOOD.” Not busy possibly means no job.

Let us train our staff not to be Accusers, Blamers, or Complainers. It is much nicer that way. And isn’t that the way it is supposed to be? Nicer!

COVID is an excuse to accuse/ blame/and complain. Do not fall for it.

Nancy Friedman is a popular speaker in the franchise industry and a highly respected customer service expert. Email: Nancyf@telephonedoctor.com. During COVID, call her cell at 314-276-1012 or office: 314-291-1012 (central time) and visit www.nancyfriedman.com Need a company Zoom meeting? Or a 30-minute RX Shot in the Arm for your team? We’d love to share our tips, ideas, skills and techniques with you and your team.

Kayla Ryan Founder of Flicke Switch Marketing

Dan Monaghan

CFE and Founder of the Clear Summit Group

Micheal Mudd CEO and Partner at BrandOne Franchise Development

Life of Ray

Pillars Team Gets Together at the Beach

In early December, Million Dollar Mentor Ray Pillar and his wife, Daisy, made their way from Chicago to Gulf Shores, Alabama – right down the road from our Chief Content Officer, Elizabeth Denham. Elizabeth got to see the “Bus” up close as Daisy graciously offered her the VIP tour. Daisy and Ray certainly get to travel in a beautiful home on wheels!

Elizabeth took the pair to one of her favorite local beach restaurants, The Gulf, where the view was spectacular. The sun even broke through the clouds just for the Pillars so they could enjoy the sparkling water of the Gulf of Mexico.

Enjoy the photos of the day, and check out our social media for some videos!

On the Road Again with Ray and Daisy! “

Don’t Wait! Start Now!

Year-End Tax Planning Ideas for Franchisors, Franchises and Individuals

by Michael Iannuzzi

It is hard to believe that 2023 is upon us! As we begin a new year, now is the time to plan in advance for tax savings strategies and start to plan for the future.

Business strategies:

• If you are a cash basis taxpayer and you are projecting taxable income for the year, plan to pay for items that you know you need so you can deduct those expenses in the current year.

• If you are looking to buy equipment, or other depreciable assets, it could be great to purchase those items during this year and place them in service prior to the end of the year so you can take advantage of bonus depreciation or section 179 depreciation.

• Depending on the entity type, you may have certain net operating losses that you are carrying forward. Now could be a good time to have those net operating losses analyzed to see if you could take advantage of them for this year.

• Do you have a profit-sharing plan set up for your employees? If so, employer contributions to the plan could be deductible. There are several types of plans available that could be explored to maximize contributions for the owners while taking care of the employees.

• Accrual based taxpayers should make sure all relevant accounts payable and accruals are recorded on their books as of December 31, 2002, and that 2023 accounts payable and accruals are paid in 2024 by the IRS allowable guidelines.

Individual strategies:

• If you are part of a health savings account plan, you can check with your plan administrator to maximize your contributions to that plan. There are different contribution limits for individual coverages and those with family coverage. Certain health savings account plans also have investment features in them after you have

a specified amount of money available in your account.

• Are you on pace to maximize your 401k or Roth retirement plan contributions? 401k contributions are deductible now as opposed to Roth contributions.

• Certain states have state tax benefits for contributing to your state’s 529 Plan which allows you to save on state taxes while saving for your children’s college education. Check with your local state to see how these contributions are treated for your own state’s tax purposes.

• There are increased tax rebates for certain energy efficient products such as installing solar panels on your home. If you were considering making an investment like this, you should confirm the tax rebates on making these type of purchases.

As you can see there are a number of both business and individual tax strategies that you could take advantage of whether you are a franchisor or a franchisee. Proper planning, budgeting, and projections are the key to maximizing your tax savings strategies and preserving cash flow for future operations. The ideas presented are general and may or may not apply to your type of business, entity structure, or personal situation.

FinPlease check with your business and or personal tax advisor on these items.

miannuzzi@citrincooperman.com

Michael Iannuzzi is a partner and co-leader of the firm’s franchise practice providing audit and accounting, business consulting and advisory, and tax planning services to a wide spectrum of franchise related businesses. Michael works with franchisors and multi-unit franchisees in a variety of industries, including, but not limited to, fitness and athletic centers, children entertainment centers, junk removal companies, mobile concepts, Quick Service Restaurants (QSRs), and grocery stores.

Links –

Franchise Website Link - https:// www.citrincooperman.com/industries/franchising

Social Media: Michael Iannuzzi - https://www. linkedin.com/in/michael13/ Citrin Cooperman: https://www.linkedin.com/company/ citrin-cooperman/ https://twitter.com/citrincooperman https://www.facebook.com/Citrin. Cooperman.CPAs/ https://www.instagram.com/citrincooperman/

Pillars of Women

Recharge Your Career

and Your Business

by Andrea Mundie

December and January are months of celebrations for many cultures. While fun and full of happiness, it usually comes with a high degree of stress and anxiety. Striking a balance between family, friends, work, chief gift buyer, school activities for those with kids and add in kids being out of school for a chunk of time is overwhelming. It leaves many of us feeling like we don’t have a handle on our lives or with feelings of inadequacy.

But when we map out in bullet point form the volume of items we have running through our heads — the so called mental load — it can be staggering to review. This may give us the opportunity to afford ourselves the ability to see this is not a case of inadequacy but rather of extreme volume.

Being chaotically busy is an opportunity to make powerful observations about ourselves. First, we can reflect on what we chose to prioritize. What did we actually do, in what order, and how did we feel about the things we were doing? Taking stock of these things at the tail end of this period of time and on the cusp of a new year is valuable. Think about the feelings you had when you were in the throes of the items on your list. What energized you, what drained you, what did you procrastinate on and what did you prioritize? What did you not get done? Did anyone die as a result? Was it of any consequence? If the answer is no, why was this on your list? Take stock of the items you did out of obligation or guilt or habit.

For the stuff in the middle — the more benign tasks that needed doing, but didn’t energize, nor drain you - could these be outsourced, delegatedor post-

poned to a less stressful time of year?

Now use this list to propel you forward into a new year. Clearly, there are things you need to reflect on why you do them. Perhaps counseling, or honest conversations with family and friends can help remove them from the list entirely. The things that excite and motivate you need to be the focus, and used as a theme going into the coming year.

For many of us, this is an opportune exercise to evaluate our current career. Whether we are a business owner, staying home or

working for someone else, are you aligned with the priorities and focus you have identified as being things that excite and motivate you? If not, let’s talk about how to take action and change.

Pil lar

If you own a business, go through the same exercise to create priorities and focus for yourself and your team on your business goals that align with your values and priorities. How many items in the middle can you move to others to help you focus on the things that grow your business? Look particularly at the things you identified you may be doing out of habit.

And always be aware that you can prioritize asking others to pitch in and lighten your load.

“

If you are currently in a job and have identified that going to work elsewhere isn’t igniting you, what on your list did? Is there a business opportunity related to this? Is the lack of flexibility a part of this list? Franchising affords the opportunity for those who love to build and work hard but can also grant flexibility. Find a great franchise consultant or broker such as Pillar of Franchising, who are agnostic to any one brand or industry. They are a great and freeto-you resource for identifying franchises that are a good fit for you. They will have an inventory of diverse opportunities they have vetted and can guide you through to support educated decision making.

Another option, if you are considering a franchise business or are at home and considering working outside the home, is working for a franchise system. This is an incredible opportunity to learn about the industry of franchising. And supporting franchisees is a wonderful and rewarding place to be. In many cases, work is remote as franchise systems, by nature, operate all over the country. The very nature of franchising also means that flexibility and working at odd times due to business cycles can work really well for you.

As a final thought, remember that we always have the option of making a change for ourselves. When we feel chaotically overscheduled, sometimes

intentionally stopping and going through this simple exercise can help reset your mindset and help you map out what should be done, what you want to do, what you’ll never really need to do. And always be aware that you can prioritize asking others to pitch in and lighten your load.

Happy Holidays and here’s to an Ignited 2023!

Andrea is the Principal of Coltivare Strategy, a Consultancy she founded to help businesses in the areas of Franchising, Retail, Cosmetics/ Beauty, Marketing and Strategic Planning in order to scale efficiently. She has worked with some of the best brands in Franchising, recently Massage Heights, and is currently Head of Marketing at Woven Brands. Andrea is the former CEO and President of skoah, a Vancouver based skin care company with locations in Canada and the US. She co-founded and co-owned skoah for 19 years, before exiting in January 2021. You can reach her at: andrea@coltivarestrategy.com

Is Your SBA Loan Really

by Eric Schechterman

There is an increase in the number of people looking to become business owners, and funding the business is key to a successful launch. In today’s environment, one of the most sought funding sources is an SBA loan. But do borrowers fully understand what is involved with an SBA loan?

Candidates often mention their preference for an SBA loan because they believe they are “using someone else’s money” to fund their business. Actually, this isn’t true. If someone gifted money for a business, with no strings attached – that’s using someone else’s money.

With an SBA loan, you are being given funds to use for a business – and usually with more favorable terms than if you were to borrow directly from the bank or tap into a line of credit. But it is

a loan, and with a loan there is a repayment schedule and interest, much like with a home or automobile purchase.

As an example, an SBA loan for $150,000 will cost the borrower more than $200,000 over the term of the loan in principal and interest (using a current estimated interest rate). Plus, if the business goes under – even if you declare bankruptcy — an SBA loan must still be repaid. It’s a government loan, and the government will get their money.

So how is that using someone else’s money?

Not only that, but the terms of the loan are dependent on other factors like liquid assets, collateral, and a good credit score.

On the other hand, there is a funding option that doesn’t require loan repayments, a great credit score adequate liquid

reserves or collateral. And it’s not dependent on someone else’s money. Known as a ROBS (Rollover as Business Startups) strategy, this option allows you to fund your business with your own retirement funds – without upfront taxes or early withdrawal penalties.

Although the goal is to run a successful venture, there is always the possibility of the business going under, regardless of what funding is used. Because a ROBS isn’t a loan, but rather an investment, the loss is written off as a bad business investment.

Eric Schechterman is the chief development officer at Benetrends, the International Franchise Association’s (IFA) preferred vendor for ROBS rollover financing and a trusted leader in franchise and small business funding for over 40 years. He can be reached at eschechterman@ benetrends.com.

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Telephone Doctor

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Questions from the Audience Questions from the Audience

The Pillars of Franchising show airs live every Thursday at 4:00 CT/5:00ET. Because we are a live show, we encourage viewers to call in and ask questions of our guests or our Million Dollar Mentors. Going forward, we will feature some of your questions in every issue of the magazine. If you have questions during one of our shows, we welcome you to call in during showtime at 323-580-5755 or email us ahead of time at yourdream@pillarsoffranchising.com

Kristin Selmeczy: Do I need to

use a broker to buy a new franchiser only in existing franchise locations?

K.S. No, you don’t need a broker at all. However, I can tell you that using a broker makes all of the work that Jerry did (as he wrote in his book) a lot quicker and easier. It provides opportunities that maybe you won’t find on your own. But you can use a broker or not in both situations. In my personal experience, I used a broker, and it was one of the best decisions that I could have made because I would have

never thought to buy a maid franchise. That was not what I was looking for, but I couldn’t be happier that I did. It was exactly what my family and I needed at the time, and it turned out to be a great business model.

Jerry Akers: I’ll reinforce that. I think that about 90% of the time you should use a broker, no matter what kind of business you’re looking at. To Kristin’s point, they take a lot of the work out of it. They vet the other side. So, you have less worry about what you’re getting or not getting.

QUES

They’ll actually catch problems in the offering in the real estate as well as issues with things that you get when you buy a franchise. So, I think that’s a good idea. The only time I don’t necessarily think it’s necessary is for instance, is if you know somebody that’s already in that franchise group. If you have been tracking their success for a while and, they know you, and they’ve said, ‘Hey, if you’re thinking of a franchise, this is the one to think about because it would be a good fit for you.’

K.S. Then you can probably go directly to that corporate group and work with their franchise rep. The franchise rep is really a broker that doesn’t make money off of it because they’re paid a salary to help bring people in. You’re still getting a lot of the same resources when you go that route, but you don’t have an unbiased third party.

J.A. If you have any concerns, get a broker involved. They will give you some good guidance. But there are times when it may not be necessary.

K.S. Why do we believe that the under-40 population will go off and start their own business, but they either don’t or aren’t considering buying a franchise? Is the franchising industry not wanting young owners?

K.S. Well, let me tell you about a personal experience. I can tell you the industry would love young owners. I think that especially franchisors who recognize that their brand has been around for a while are looking for fresh blood, not only to share ideas but also to come in with fresh perspectives and higher energy levels.

I see more and more brands looking for younger people. I’m only 50 and I’m out of date on most all of the social media stuff compared to my 14 through 17-year-olds. They know stuff that I don’t. So, I think there’s a lot to offer for younger people. I would never say that the franchise industry doesn’t want younger people, that is just not the case. But I think it’s a matter of educating people. And that’s why we have the show — to try to talk to people about all the opportunities that are out there. And there are such great brands for young, energetic people to go into.

J.A. Well, Kristin, most young people start their own businesses because they don’t know better. And I’m not saying that from a negative standpoint. The fact is, they get this really great idea of something they think their community needs or would get excited about. They bootstrap it, and they go out and make it

happen which is great. I think that’s phenomenal. I shout praises from the rooftops, but, the fact is 80% of those businesses will fail in the first five years. And it won’t be because the young owner didn’t try hard or didn’t have a good idea. They may just not have been able to put all the pieces together and cash flow it. I just think they don’t understand that franchising is an expedited route to get into a fairly safe and secure business that may be very well related to whatever their idea was.

K.S. I don’t want anybody to hang me up on this thing, but young people, because we were all young at one point in time, we think we can slay dragons and we’ve got a better idea than anybody else. Mine’s going to be better than the other options out there. And there’s nothing wrong with exploring that. But I think that’s one of the reasons so many young people don’t try franchising. They think they can do it on their own.

The other thing is many young people may do some online research about what it costs to open up a franchise and say, you know, I don’t have that much money. I don’t have borrowing capacity. I’m going to do something else. I’ll open up my own thing. There are lots of ways to get financing in the franchise

world. So, if anyone out there is in that younger category, do not let that hold you back until you’ve explored some other options. We’ve got some great resources just here in our group at Pillars, and we’d love to have those conversations with anyone who is interested.

If you go back and listen to some of our older episodes, we talk about different options and how you can go about either finding funding or leveraging what you have in a 401k. We also talk about how to approach your family and how to get partners.

J.A. You brought up a great point about looking for partners. And we both know that I don’t do partnerships very well because I don’t play nice with others. But the fact is, if you’ve got a young person out there who would like to buy a franchise and you don’t have the bandwidth or the financial ability to borrow that money, there are probably five people in their forties or fifties who have a good job who want to continue it and would love to be a partner in a business. And they have the money and the borrowing capacity to partner with this person

and maybe even mentor them a little bit. That’s what I’m doing right in the Joint Chiropractic. I’ve got Vinny, and he’s coming in to learn underneath me. He’s going to slowly buy in and then he is going to end up owning it someday. There are a lot of those opportunities. So young people keep that in mind.

Spend a Minute with CEO Kristin Selmeczy

by Johanna Selmeczy

Kristin Selmeczy is the President and CEO of the Molly Maid of Bloomingdale and Mount Prospect and the Co-Founder and CEO of Pillars of Franchising. She has been a franchisee for 16 years and has over 35 years of customer service experience.

Starting out at Home Depot as a part-time Cashier, Kristin worked her way up to Regional Sales Manager in the Services department. As a woman in a heavily male-dominated industry, Kristin faced a variety of challenges while climbing the career ladder. Her experiences have made her particularly empathetic towards empowering women in business, minorities and survivors of domestic abuse. Kristin spent over 15 years at Home Depot, but everything changed when she had her first child. Realizing that her current position could never offer the flexibility between work and personal life that she needed, Kristin knew she had to make a change.

Kristin took a chance and bought a Molly Maid franchise in Bloomingdale, Illinois. The rest is history.

Now, Kristin is one of the Pillars of Franchising Million Dollar Mentors and a Co-Host on the Pillars Podcast. She has three children and wears the titles of hockey mom, baseball mom and PTA President with pride. Her family’s well-being is of utmost importance to her, but she also strives to teach her kids the importance of tenacity and hard work.

Growing up, Kristin’s family life was burdened by poverty

and divorce. She grew up in Section 8 subsidized housing with her mother and younger brother in Michigan while her father worked construction jobs in California. Eventually, she moved out to California to live with her father while her brother stayed behind. There, her father instilled in her a rigorous work ethic which she credits for her success. She began working at 14 years old and worked multiple jobs throughout high school.

“It was about survival,” she explained. “Nothing was ever handed to you. You had to work for it.”

Neither of Kristin’s parents went to college. Her mother dropped out of high school when she got pregnant at 16 and her father entered the workforce as soon as he graduated to support the family. Kristin initially attended Michigan State University but never finished school after drop-

ping out. She returned to college through the Home Depot tuition reimbursement program while working as a store manager, but was waylaid due to a serious medical condition. Despite this, she has made her own path to success and propagates her own story as proof that college isn’t the only option for young people.

“I believe that if college isn’t the right path for you due to personal, financial, medical, or whatever reason, sometimes ‘real world’

experience can be just as if not more valuable than academia,” Kristin said. “There are people I know from Home Depot who never finished school but are millionaires today. There isn’t just one road to success.”

Now, Kristin has made it her mission to give back. At Home Depot, she worked with Habitat for Humanity and Kaboom! and learned about the importance of taking care of her employees and her local community. She currently sits on the Board of

Directors for the Ms. Molly Foundation, an organization centered on aiding victims of domestic abuse and IPV (Intimate Partner Violence). She works to provide support systems to young people in the LGBTQ+ community who lack unconditional support at home. Kristin is also a continuous volunteer in her children’s school districts and believes that the fabric of the community is built on active involvement.

Kristin’s favorite thing about franchising is the operational sim-

plicity yet personal flexibility of running a franchise. Although there are clear corporate procedures and techniques to follow, every franchisee gets to run the day-to-day intricacies of their own business. Kristin enjoys building relationships with her employees, networking with other local business owners and using her experience to help new and current franchisees.

In the future, Kristin hopes to retire on a beach somewhere, with a lifestyle that allows for travel, family and flexibility. Currently, Kristin spends what sliver of free time she has between driving her kids to sports games and running her businesses to read, garden or spend quality time with her family (and yes, that includes her three dogs).

PILLARS FRANCHISING OF