ESU Spring 2023

COONNTTEENNTS TS

How much can you make as a franchisee? Here are the questions to ask before signing on the dotted line.

Experts

Families

These

CONTENTS

16 Beware the Zombie Franchise

Some opportunities look alive and well at first glance, but are actually dead in the water.

8 What’s Your Franchisee Personality?

There are seven. Chances are you have one of them.

14 Reaching Across the Digital Divide

Four ways to market to prospective franchisees online.

18 Try Out the Multi-Unit Mentality

When you think bigger, you earn bigger.

22 Pick a Winner

Five signs you’ve found a franchise with a bright future.

25 The Pioneer

Sergio Aguirre took the leap and brought Mr Jeff laundry service stateside.

28 The (Re)Trainer

Zoom Room’s CEO realized his dog-training franchise was headed in the wrong direction, and course-corrected.

30 The Standard Bearer Clean Juice looked to stand out in a crowded market by getting a difficult certification.

32 The Helper

Kika Stretch Studios helps people unwind, but its founder needed a hand with that, too.

34 The Change-Maker

To reach those who needed it most, Jamie Trujillo made her Challenge Island a nonprofit.

Miami-based Sergio Aguirre opened the first Mr Jeff laundry franchise in the U.S. P.25

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Which Franchisee Personality Type Are You?

There are seven of them. Knowing which one you are can help you select the best franchise opportunity for you.

by ALICIA MILLER

If you value following a system and want to start your own business, franchising could be a great fit for you. After all, franchise ownership is about being a “systempreneur” more than an entrepreneur. But how do you find the right franchise for you? Which type of franchise best fits your personality and goals? To figure this out, you need to

understand exactly what drives your systempreneur spirit.

Over many years analyzing and helping franchisees, I have observed seven basic systempreneur franchisee personality types. You may fit into a few, but one likely dominates. Let’s discuss each one’s characteristics, and how they can shape your search. ▶

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1 ▶ The Inventor

You like to create. You don’t need or don’t want a playbook. If a process exists, you tend to ignore it or reverse engineer it to find a better way. You dream of new products, brands, and businesses. You’re a “true entrepreneur.” But here’s the thing: Franchising is all about system conformity. Since you chafe under someone else’s rules, being a franchisee is probably not a good fit. However, starting a franchise from scratch (assuming you like the franchise model as a market expansion strategy) is something to consider. You will invent systems and processes for others to follow. But you will be the creator— the franchisor.

2 ▶ The Maverick

You want existing systems because you value speed and expedience. You’re also okay with a bit less structure, because you’re an early adopter and an energetic self-starter. You like to stake out prime territory first. You were likely promoted many times in your corporate life because you delivered the goods and got noticed. Or you’ve been a serial entrepreneur.

FOCUS YOUR FRANCHISE SEARCH ON:

▶ Emerging brands (with enough processes in place)

▶ Regional brands

▶ Area and master developer opportunities

AVOID:

▶ Mature brands

If you value following a system and want to start your own business, franchising could be a great fit for you. After all, franchise ownership is about being a “systempreneur.”

3 ▶ The Empire Builder

The empire builder is the truest personification of a franchise systempreneur. You’re a self-starter and want to build grand scale and wealth. You are likely to be competitive, demanding, energetic, fast-moving, extremely methodical, and strategic. Your greatest skills are usually team-building, operations, leadership, planning, and deal-making. You appreciate adapting existing systems so you can focus on team development, operational excellence, and capital planning. This allows you to grab every great opportunity, especially acquisitions.

Most large multi-unit franchise operators exhibit this personality type. Over time, these leaders create a management team and support systems that often rival or exceed the franchisor’s. Some large operators buy whole brands outright.

FOCUS YOUR FRANCHISE SEARCH ON:

▶ Multi-unit–friendly brands with well-established operating processes

▶ Established brands with available white space

▶ Area developer opportunities

▶ Highly scalable businesses that can be run profitably through professional managers

▶ Consolidation opportunities in solid brands

▶ Whole brand acquisitions

AVOID:

▶ Emerging brands with immature systems

▶ Turnarounds at the brand level

▶ Owner-operator models

4 ▶ The Passive Investor

You don’t want to put in fulltime effort. You want to diversify your business interests but also keep your job or another business, or you’re semiretired. While some models are built for passive franchisees, remember that the startup phase will still be extremely hands-on.

FOCUS YOUR FRANCHISE SEARCH ON:

▶ Models designed for passive investors

▶ “Operator for hire” models as a paid service to run the business

▶ Acquiring and consolidating existing, well-performing units under a proven management team

▶ Minority investment opportunities

▶ Real estate investments with franchise tenants

AVOID:

▶ Owner-operator models

▶ Unproven passive models

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feels a certain way. You value building a close-knit team as an end in itself. Profitability may even be a secondary consideration. You must be hyperdiligent to ensure model profitability for this reason.

FOCUS YOUR FRANCHISE SEARCH ON:

▶ Concepts that emphasize community networking and marketing

▶ Concepts where customers and employees value being part of the brand community (e.g., fitness, pet care, healthy food)

AVOID:

▶ Completely passive models

▶ Work-at-home models with lit-

The Escape Artist

Many franchisees would rather work 80 hours a week for themselves than 40 for someone else. But the escape artist franchisee archetype is unique. You want as little oversight as possible, even within a franchising context. You may also seek physical freedom; you don’t want to be chained to a desk. Your weakness is your willingness to overlook weak franchisee support because you don’t plan to utilize it much anyway.

FOCUS YOUR FRANCHISE SEARCH ON:

▶ Mobile, part-time and workfrom-home models

▶ Emerging brands

▶ Field-based concepts

▶ Passive franchise models (the

The correct franchise f t requires honesty and self-awareness. It can be tempting to ascribe unrealized aspirations to this exercise. Being a maverick sounds great, but are you really?

7 ▶ The Turnaround Artist

You are a stone-cold operator who can quickly diagnose and treat nearly any business ailment. You are comfortable with—and even attracted to—complicated business problems. You have a proven track record and your own playbook to get faltering businesses or units back on track. You like to buy low, turn things around, and sell high. You may have real estate, bankruptcy workout, finance, operations, or other relevant experience. Franchising attracts many operators like you, because even within proven systems, there are

AVOID:

▶ Mature brands without a turnaround opportunity

The correct franchise fit requires honesty and self-awareness. It can be tempting to ascribe (perhaps unconsciously) unrealized aspirations to this exercise. Being a maverick sounds great, but are you really? Check in with those who know you best. Then leverage your unique gifts and strengths to create your own version of success.

Alicia Miller is cofounder and managing director of Catalyst Insight Group.

The Community Builder

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COMMUNICATIONS

Four Ways to Fix Your Marketing

Franchisors often struggle to reach new franchisees online. Here are four common mistakes, and the insight you need to truly expand your reach. by GRAHAM CHAPMAN

Many franchisors are good at consumer marketing. But they typically struggle to reach a different, equally important audience—potential franchisees.

I’ve spent 15 years in franchise development marketing, and I see this problem repeatedly. Digital marketing strategies are often underbudgeted, or spearheaded by internal point people with limited experience. As a

result, franchisors are slower to find the right franchisees for their brand.

How can you do better? Here are four major mistakes my team and I often see—and how to fix them.

Mistake 1

Thinking SEO is only for consumers.

Franchisors often understand the importance of content marketing, but they tend to aim

it exclusively at consumers. As a result, a brand’s article or blog might come up when someone searches “coffee shop near me” but not when someone searches “coffee shop franchise.”

Be smarter about how you spend your franchise development marketing dollars. Use analytics to understand what your target audience is searching for, and craft franchise-specific content that speaks to them. When done well, the right content strategies can reach consumers and potential franchisees on their terms, without any overlap or confusion.

Mistake 2

Launching separate sites. Franchise brands often build separate websites, on separate domains, to reach consumers and franchisees—for example, through domains like brand.com and then brandfranchise.com. This strategy backfires on search engines, because instead of having one powerful and welltrafficked website for search engines like Google to recognize, you’re exponentially reducing your website’s domain authority.

To fix the problem, take your consumer site (brand.com) and create a subdirectory for franchise recruitment efforts (brand.com/franchise). This subdirectory can be selfcontained, with a totally different design aesthetic, like a website within a website. (Just be sure the consumer and franchise development pages deliver the right user experience; we often see brands mistakenly use links that direct potential franchisees to the consumer homepage, which can be confusing.) This combined effort will earn you higher page rankings and increase your domain authority, which will help you reach more consumers and franchisees.

Mistake 3

Promotional

Promotional blogs. What is quality content, and what is simply a press release? Too many brands don’t know the difference.

Think of it this way: Today’s candidates don’t care about how awesome your brand is until you’ve built up trust and credibility with them. So if they come to your franchise development site, and all they see are announcements about grand openings and new executive team members and can’t find answers to their top questions, they will lose interest. Instead, create educational and informative blog content. Potential franchisees should find content aimed at them, and full of useful and actionable information.

Mistake

4

Giving up too early. Some franchisors expect online marketing strategies to pay off quickly. They won’t. It can take up to a year or longer for search engines to index new content and raise organic rankings.

Think of your marketing like your 401(k) performance: If you expect quick results, you’re creating an unrealistic way to measure progress.

AS YOU FIX these problems, remember: In digital marketing, you must play two games at the same time. With consumers, it’s a volume game—reaching as many people as possible. But with future franchisees, it’s a quality game—appealing to the people who truly fit your brand. You can achieve that with the right content marketing strategy, guided by data analytics.

Graham Chapman is the president of 919 Marketing Company.

Aziz Kabani

• Low initial investment starting at $148,017

• Over 29% higher 2021 average revenue than our closest competitor

• Tremendous student results

• 45+ years as an industry leader

• Diverse services ensure multiple revenue streams (grades K – 12)

• Turnkey systems and dedicated support teams

• $5 billion industry and projected to grow to $18 billion by 2028

(source: Grand View Research)

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20 Signs a Franchise Is Actually a Zombie

What’s that? It’s a franchise that looks good at first, but should be avoided at all costs. Here’s how to avoid buying a brand that’s a total dead end.

by ALICIA MILLER

Beware the zombie franchise.

It’s the one that has stalled out, but still markets its opportunities as if nothing is wrong. Its brand relevance is typically shrinking; the number of open units is wilting. Previously loyal customers are being siphoned off by more innovative concepts. Underlying demographics may have shifted. Market trends could be working against the brand, yet management hasn’t created a new path—and that managerial inertia or denial may be compounding the brand’s problems. Unit-level economics are weakening, and an undercurrent of franchisee discontent is scaring away new franchise buyers and lowering franchise resale interest. Many existing franchisees would like to get out, if only they could—and expansion-minded franchisees look beyond the brand for better options.

From the outside, the zombie franchise may seem alive, but it’s really dead.

New franchisees who miss those signals eventually realize their mistake. They may feel disclosures were inadequate or misleading. They often look back on conversations with franchisees and wonder how they didn’t hear the negative feedback. They may remember sunny conversations with consultants, brokers, and the corporate team and feel duped. Or perhaps corporate is truly out of touch and doesn’t even realize there is a problem! And if they do realize, often these brands spend significant money on branding and advertising to try to convince potential franchisees that they are still worthy of investment. They try to reinvigorate franchise unit sales, but

not the underlying business. All the while, franchisee trust gets destroyed.

And so franchisees get trapped. Those inside a zombie system are typically shackled to the business with personal guarantees, a site lease, equipment or vehicle leases, a Small Business Administration loan, a loan against their home, a loan against their investments or 401(k), or loans from family and friends. The long-suffering franchisee can’t hire enough help, because they can’t afford it—yet they also can’t sell the business or close it down. They are stuck.

But you? You’re too smart to get pulled into a zombie franchise—and now you’ve got this easy checklist to keep your due diligence on track and avoid a weak franchise concept! Even if you’re a founder hoping to sell to private equity, they will screen out brands with these attributes unless they are dedicated turnaround investors. So at the end of the day, no matter who you are, spotting these signs is really up to you. Here’s what to look out for.

1 ▶ A lack of unit growth, especially when it comes to existing franchisees. Talk to as many franchisees as possible. If they don’t want to expand even though the territory is available, move on.

2 ▶ Weak unit-level profitability. How will you grow if the units are struggling?

3 ▶ Unfulfilled development agreements. If franchisees would rather lose their deposits than follow through and open promised units, that’s a bad sign. Item 20 in the Franchise Disclosure Document lists franchisees and holders

of development agreements. Connect with those franchises.

4 ▶ The corporate parent is overly dependent on selling franchises. Look at how much revenue is related to franchise fees compared to recurring royalty revenues. Strong royalties are an indicator that their franchisees are doing good business.

5 ▶ The corporate parent’s priorities are wrong. If it’s putting more attention on the supply chain and rebates to drive revenue, this is usually a signal of falling recurring royalties. If disclosures about rebates and supply chain costs to franchisees are murky, consider other concepts instead.

6 ▶ Weak unit openings. In particular, look for a bloated sold-not-open (SNO) funnel or SNO numbers that are quietly adjusted from year to year. Google press releases and industry articles from prior years. Was management bragging about 400 units sold five years ago but now only 50 units are open, and the rest are still sitting in the Item 20 SNO list? That’s a red flag.

7 ▶ An increasing number of poorly performing franchises. Track down old disclosures so you can compare several years of unit-level performance. How resilient is the concept? Are the trends positive?

8 ▶ Curious data disappearance. The franchise stops publishing Item 19 earnings representations when Item 19 was routinely included in prior disclosures.

9 ▶ Increased franchisee litigation. No explanation necessary.

10 ▶ Fleeing franchisees. Look for franchisees who want to sell before the expiration of their first license agreement.

11 ▶ Disappearing franchisees. These are prospective franchisees who drop out after considering resale options.

12 ▶ Franchisee discontent spilling onto websites dedicated to publishing stories from unhappy franchisees.

13 ▶ Overly creative franchisees. During validation, these franchisees will tell you that they aren’t following the system but have instead developed “hacks” to improve profitability.

14 ▶ Poor franchisee validation, poor franchisee surveys, or other signals of a dysfunctional franchisee-franchisor relationship.

15 ▶ A shrinking candidate funnel. Oh no.

16 ▶ Weakening customer interest and/or a falling market share.

17 ▶ Corporate team turnover, especially among field support, since they’re the ones working most closely with potentially unhappy franchisees. Do franchisees provide positive grades on management team performance?

18 ▶ Management in denial of danger signs. Are they complacent? Blaming franchisees? Has anyone from the corporate team ever left to become a franchisee themselves? Why not?

19 ▶ A lack of evidence of ongoing investment in innovation to keep the brand relevant. Do franchisees say this is a problem?

20 ▶ Relatively high Small Business Administration loan charge-offs. These indicators may not appear right away, but they are certainly a troubling signal.

IF YOU FOLLOW that list, it will save you time, money, and headaches. If you see weak signals, just move on. Be picky and protective of your assets. Only the worthiest concepts deserve your attention and commitment. It’s not just potential franchisees who should use that list, either. If you’re a franchisor and you see signals that your brand is becoming the walking dead, start with improving unit-level economics and rebuilding trust and strong communication with your franchisees. If you’re interested in eventually selling your franchise business to private equity, preventing problems is key. Any whiff of trouble can have a big impact on your deal terms, business valuation, and even which investors will take a serious interest in your brand. Once you’ve stalled out, it’ll take more to prove you’re back on track. Most private investors in franchising want a growth story, not to revive something struggling to survive.

No matter what situation you’re in, use your brains— don’t eat them.

Alicia Miller is cofounder and managing director of Catalyst Insight Group.

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Don’t just think big. Plan big.

When You Think Big, You Earn Big

Operating like a multi-unit franchisee can lead to better decisions and outcomes.

by ALICIA MILLER

Franchisees who plan to own multiple territories from the beginning also plan, at the same time, to build the right team. Once that team is trained and in place, the owner can focus more on growth initiatives, creating a great work culture, removing obstacles, and constantly recruiting new team members. In contrast, some new

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owner-operator franchisees may even omit manager and shift leader salaries in their early budgeting to “save money.” This is a mistake. Owners who are too mired in daily activities don’t have time to focus on long-term growth. This approach starves the business and burns out the franchisee.

So how can you avoid that trap? Create a business plan and a budget that will either keep you out of the front-line position from the start or allow you to hire a manager within six months of opening. Many franchisors that sell multipack licenses actually require tight new unit opening schedules to keep new franchisees from getting too entrenched in daily operations. They want franchisees to stay focused on building a successful multi-unit footprint and to always be thinking about the path to opening their next unit.

This approach will also lead you to pressure-test the unit-level economics of each franchise you consider. Can you actually afford a manager if you’re running at the system average revenue? What level of revenue is necessary to cover those additional labor costs, and how long will it take to reach that threshold? What profit is left over? If costs increase, can you raise prices to cover them, or will that manager role get squeezed out? Make sure there is enough headroom in the model itself before you move forward with your due diligence. The last thing you want to do is leave the corporate grind to get stuck in a franchise grind.

However, if you’re stretching your staffing budget assumptions because you’re undercapitalized, then back up. Consider

raising more capital before starting your business, or finding a less capital-intensive franchise model. There are many interesting franchise concepts with low startup costs that are worthy of your consideration.

Look for other franchisees with a multi-unit mindset.

It’s often a positive sign when more than 50% of the locations in a franchise system are owned by multi-unit franchisees, especially if those operators continue to reinvest in growth by accumulating territories over time. As you interview franchisees during the validation phase of your due diligence process, ask about their expansion plans. Are they eager to add new locations or to acquire units from retiring owners? How are they building their team to allow for continued expansion? Why is this franchise worthy of its expansion capital and effort compared to other investment options? Their answers will be revealing.

In comparison, if you’re using an owner-operator mindset, you may not even be thinking about future expansion. This may extend to how you’re self-identifying. Do you see yourself as a multi-unit large business owner? Or do you feel more comfortable talking to owner-operators? If you envision yourself as a single-unit operator, you may gravitate toward seeking out single-unit franchisees for validation instead of talking to big multi-unit franchisees with great insights to share.

Ask yourself: Why are you investing in a franchise in the first place? What are your objectives as a business owner? If you’re only looking to replace income, you run the risk of buying a job and self-selecting a potentially weak franchise.

For many people, starting their own franchise business is a way to leave their corporate life behind. So don’t bring an employee mindset into your new venture.

Some owner-operator franchises aren’t built to effectively scale. But even if you start with one unit, preserve your future growth options! Really poke at the business case and understand the potential to grow. If others already in the system haven’t successfully scaled up, that’s a red flag. The only exceptions to this are franchise concepts that are marketed and purposely designed to be work-at-home, part-time, or second-income businesses. But if a franchise opportunity is marketed as a full-time business, and there isn’t evidence that franchisees eventually build scale, then there’s a disconnect.

If you’re specifically considering a franchise with a high concentration of single-unit owners, you still need to figure out how the brand got there. Multi-unit owners possess more than 54% of the franchise units across the industry, because that’s how real wealthbuilding in franchising usually happens. It’s also because consolidation yields clear benefits when it comes to costs and efficiency. With multi-unit franchising, owners can share resources across units and create a meaningful local brand presence.

So before buying into a system with high single-unit ownership, ask questions to

understand why the system bucked franchising trends. Does it involve such a high cost that franchisees find it difficult to expand? Has the system approved owners who were undercapitalized? Does the brand tend to attract franchisees with less experience? Does management truly believe that only owner-operators on the front line can deliver the best customer experience? Are systems not replicable enough to run the business through shift leaders or managers? Is the system immature and thus not attractive to multi-unit investors? How did the franchise end up organized this way?

Remember that strong franchise concepts are highly systematized. There are methods and playbooks for everything. This allows nearly all functional tasks to be taught and delegated. Then franchisees can focus on making sure the playbooks are being followed and customers get a great experience.

For many people, starting their own franchise business is a way to leave their corporate life behind. So don’t bring an employee mindset into your new venture. Think like someone building a multi-unit empire right from the start.

Alicia Miller is cofounder and managing director of Catalyst Insight Group.

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owner wasn’t a vegan. Instead, I went with nomoo, whose owner created his brand because he couldn’t find a decent plantbased burger anywhere in Los Angeles. The more personal a founder’s reasons to enter the business, the better.

3 ▶ A trending segment.

EWant to Buy Into the Next Big Thing?

Want to Into the Next

Five signs you’ve found a winning franchise. by DAN

ROWE

very major franchise— be it Burger King or Taco Bell—started with just one store. But if you buy into an established brand after it’s become a household name, the costs can be huge. In general, it can take six to 10 years to get your money back. That’s why, no matter what concept you choose to franchise, the best way to make money is to find an emerging brand: a franchise business ready to boom. With an emerging brand, you can see your initial investment returned in just one to three years, and savvy franchisees can then reinvest that freed cash into opening more locations

and building a much bigger, much more valuable business.

Although an emerging brand comes with a certain amount of risk, the rewards can far outweigh it. Emerging brands are less expensive to join. Plus, all the prime territories haven’t already been taken, opening costs are lower, and better real estate can often be secured. But most important of all, new franchise concepts give franchisees a longer runway to make money.

For more than two decades, my company has helped grow brands like Five Guys and The Halal Guys from single-unit emerging concepts into pow-

erhouse international brands. Although you can never be 100% certain that a new concept will be a runaway success, there are five things you can look for to help you determine whether you’re backing the right brand.

1 ▶ A passionate founder. Many entrepreneurs are in it just for the money, and it shows. So when you’re evaluating an emerging franchise concept, take a hard look at the owner. Are they truly passionate about what they’ve created? Are they committed to being the best in their segment? If not, run—don’t walk—away. It’s incredibly hard to make a business a huge success, and if the founder isn’t all in, that’s not going to happen.

2 ▶ An authentic purpose. Passion alone isn’t enough. An emerging brand must also have authenticity. Customers can sniff out brands that lack soul, and they stay away. For example, when I evaluated plant-based burger concepts, I eliminated brands where the

To make money with an emerging brand, the segment needs to be emerging, too. But be careful: Just because something is a fad now doesn’t mean it’s going to stay popular forever. Don’t think in terms of next month or next year—think in terms of the next decade. Will the segment still be hot then? You’re going to want to have a long runway of at least 10 years to see a brand expand to more than 500 locations while the segment is still growing.

4 ▶ Strong unit economics. For a franchisee to get rich via franchising, a concept must have strong unit economics to back it up. How can you know that’s the case? Data. Numbers don’t lie. If a franchisor can’t offer impressive numbers, look for another emerging brand to invest with. No numbers means they’re either going in blind or operating too optimistically.

5 ▶ Swift

ROI.

Every franchisee wants to get their money back quickly. When evaluating a concept, look for one where you will see a fast return on investment. This also means you will be able to use the power of compounding returns to reinvest in the concept and open additional units. After all, that’s the best way to become wealthy in franchising: when you, too, have more than one store.

Dan Rowe is the founder and CEO of Fransmart.

CONVERSATIONS

First in the Country

What’s it like being the first U.S. franchisee of an international brand? Mr Jeff pioneer Sergio Aguirre has an answer: It’s a learning experience for everyone.

by MADELINE GARFINKLE

How does an international brand enter the United States? It’s a question that many franchises ask—and for laundry service brand Mr Jeff, which was founded in Spain and has sold more than 2,000 locations globally, its entry into America came via an unlikely source: a humble aspiring franchisee named Sergio Aguirre. Aguirre lives in Miami and spent years working in hotels.

He considered opening his own restaurant, but his aspirations changed after visiting Mexico to see friends. That’s where he learned about Mr Jeff. He asked if the company was expanding into the U.S., and at the time, it wasn’t—but a few years later, in 2021, he got the call. “We’re ready if you’re ready,” a brand representative told him.

Now Aguirre’s storefront is open, and he’s been helping introduce Mr Jeff to America. ▶

CONVERSATIONS

(The brand does its customers’ laundry, with pickups and delivery scheduled through an app.) Here, he talks about what it’s been like to be a pioneer, and the importance of connecting with customers.

You worked in hospitality before. Did your hotel experience help you with Mr Jeff? At the hotel brand I worked at before, the idea was to maintain standards and quality across its 300 locations. It wasn’t a franchise, but it’s the same idea. It’s all about getting to know your customers and maintaining that communication.

It’s important with customer service to find out what went wrong and figure out

“I’d never opened something alone, and I’ve hit the wall a couple of times, but I’ve been, like, OK,whatdoIneedtodo now?Because I’m the one who needs to make the decision.” and I’ve hit the wall a of times, but I’ve one to

how to make it right. People like to talk and know that you’re on top of things. Like, there is this one woman who is very consistent—she downloaded the app and subscribed to a plan, but she doesn’t use the app to order. She relies on me to do everything. I can’t tell her that she must use the app, because yes, that would make my life easier, but sometimes it’s more important to adapt to them. In the end, I am offering a service.

How has it felt to be the first Mr Jeff franchisee in the U.S.?

All the feelings have been there. I’ve had a big challenge, which has been trying something here that hadn’t really had proof yet. The first months were crazy,

and I started thinking, Why did I do this? But through help from mentors, it’s been a year of growth. I needed to take it slow and not stress myself out.

What was the beginning like?

It’s important for new franchisees to know that opening a business doesn’t mean it just starts running right away. You need to be there every single day for the first year and constantly make sure that you’re growing. I’d never opened something alone, and I’ve hit the wall a couple of times, but I’ve been, like, OK, what do I need to do now? Because from there, I’m the one who needs to make the decision. Some people are very scared about that, and it can be very stress-

ful. As the first franchisee, I’ve been taking in all those little details and learning. I still have a long way to go, and just need to make sure I don’t get lost.

How have you managed the stress of this big challenge?

It’s a question of maintaining my daily routine. One of the most important things is just having my coffee, or having a good lunch—enjoying those little moments to keep thinking and stay motivated. If you’re stressed from morning to night, then you cannot sleep and then you can’t rest. And if you don’t rest, then you cannot perform well the next day. Even if there’s a huge storm coming, you just need to stay cool and decide on a strategy.

CONVERSATIONS

Trainer, Train Thyself!

When the dog-training franchise Zoom Room stumbled, CEO Mark Van Wye took a step back to assess. Now he has the business standing back on all fours—and leaping. by MADELINE GARFINKLE

Mark Van Wye is in the dog-training business. But to thrive, he needed to do a better job training his own business.

“We made a lot of the classic mistakes that many new franchises do,” he admits now. His business, Zoom Room, offers dog-training classes, as well as “a fun, sporty place” where

owners can play with their pups. It was inspired by a sport called dog agility, where dogs run through obstacle courses.

“We wanted to demystify dog training completely,” Van Wye says, and dog owners jumped at the opportunity. His company started franchising in 2009 and grew to 20 units in five years, but then those early franchisees

started failing. By 2019, Zoom Room was down to six franchised units—and Van Wye had put a two-year moratorium on new locations, giving himself time to fix the business. Now he’s up to 28 franchised units currently open, and Zoom Room reached 100 signed units nationwide in January. Here’s what he did to get tails wagging again.

What were those early years like?

There was an initial excitement—but when I took my head out of the sand, I realized that although we had stores open, they weren’t doing particularly well. We weren’t doing enough thorough vetting of franchisees, weren’t putting any investment into real estate teams to make sure they were picking the perfect location, and we didn’t have a grasp on what the unit economics were.

So you hit pause on new store openings. What then?

First, we needed to introduce the idea that our service was repeatable. When we started, we offered a six-week program— you do it, you get a certificate, and it’s over. So I created a curriculum that you could do for your entire life with your dog. Second, we focused on marketing and technology. We had this tremendous database about our customers, so how could we reach more people just like them? We built out our own algorithm and software to find the right people in the community, let them know about the business, and had additional layers of technology to retain and keep them engaged.

The last piece was scheduling—having people come in as much as possible. We set up a credit system, so customers didn’t have to make any big

commitments. And we added flexibility. This is quite normal in, let’s say, a yoga class: You drop in when you can. By reducing all the friction points of when you can come in, what commitment you’re signing up for, and having so many options available through positive reinforcement, that led to immediate success.

Did you consider larger changes to the business?

We didn’t raise prices, we didn’t add other lines [of revenue]. The classic mistake that businesspeople make is, “Oh, we’re not making enough money; let’s add grooming or daycare.” But we didn’t change the fundamental nature of Zoom Room, which is that we do dog training with an emphasis on socialization. We changed subtle things that affected the rate at which people purchased classes, how frequently they came, and the ability to target the ads effectively with our tech. A nickel here and a nickel there is how you get to every unit doing six figures of profits every year.

What advice do you have for others who hit a similar roadblock?

There must be something that’s driving you. If you’ve got a business that has plateaued or is failing, then you can’t be doing it for the money, because there are a lot of easier ways to make money than to take on something that is stale, stagnant, or broken. You’ve got to be led by something, whether it’s mission-driven or purpose-driven. If you don’t have that passion and ability to commit, go all-in, and build up the team that you need to accomplish that vision, then I don’t think you can do it.

CONVERSATIONS

Kat Eckles was willing to get in the weeds to get her juice brand USDAcertified organic.

As Clean as It Gets

As juicing became popular across America, the brand Clean Juice looked to stand out. Its solution wasn’t a new product—it was raising the standards for all its products.

by MADELINE GARFINKLE

Kat Eckles wasn’t always a healthy food enthusiast. But after having her first child, she became more conscious about her diet. “It was the first time in my life that I really thought about being as healthy as possible, so I could be with my family as long as possible,” Eckles recalls. She started exploring “superfoods”—foods believed to be densely packed with nutrients—but thought they were all gross. When she blended them (and a few extras) into a smoothie, however, they became delicious.

Eckles saw an opportunity. So in 2015, with no prior business experience, she and her husband relocated from New York to North Carolina to open their own juice store. Since then, their brand Clean Juice has grown into a franchise with over 125 locations—just as juicing became popular nationwide. Clean Juice remains set apart from the crowd, though: It is the only USDA-certified organic juice and food franchise, ever. Here, she talks about how they’ve worked to be accessible while standing out.

culture like when you first

It wasn’t really accessible to the everyday person. In New York City, it was, like, the badasses did it. Juice Press used the F-word in their marketing. Then you’d go out to Los Angeles and there were all these crazy ingredients you had never heard of. You thought, This is only for supermodels. Then you’d go to Raw Juice in Miami and the girls would be in crop tops and everybody would be gorgeous. So our brand was really just for the everyday person. We’re like the Joanna Gaines of juice bars. We made it work not just in a niche market, but all over the country.

Why did you decide to become USDA-certified organic?

There’s all these different diets and ways of eating, but to me, the most important thing is the quality of our food. I didn’t want to eat or drink our products if they weren’t organic. So I did it

selfishly, but we worked really hard to get that certification. It was relentless and tedious, but we really believed in it.

What was the certification process like?

Our produce is grown in California, so we reached out to the California Certified Organic Farmers, which is a USDA-accredited certifying agency. They had never done a food franchise before, so they were like, “We’re going to have to come up with this process together, and it’s going to be hard to do.”

They had to go through every single receipt for every single piece of produce and everything we brought into the store for six months. They backlogged and traced everything. They would go ingredient by ingredient and then track it to make sure we didn’t buy, for example, 40 pounds of organic kale and 20 pounds of conventional kale.

Even now, if our distributors run out of something and an owner has to run to the store to get organic kale, they have to take a picture of the lot number and the batch record and keep the receipt to file correctly.

That’s why when people are like, “Oh, that organic certification means nothing,” I’m like, “No, you don’t understand.”

Does the certification help the brand grow?

I think it’s kept us separate in the market. And eating organic is something that more people care about. It’s not only better for you physically, but it’s better for the environment. It requires better farming practices. And our owners really care. They’re passionate about it and they bought into the brand because of what we do.

CONVERSATIONS Franchise

Kika Stretch Studios teaches students how to let their bodies relax.

Deep Breaths to Success

Kika Stretch Studios teaches people how to “just be.” But its founder, Kika Wise, was running herself ragged. That’s when she decided to try franchising. by MADELINE GARFINKLE

Aprofessional dancer by trade, Kika Wise has always been a believer in the importance of releasing tension while not asking your body to “do anything.” But in the fitness industry, that made her an

outlier. “Everyone’s putting their bodies through so much, trying to get toned, but not thinking, How can I reset my body so that I can continue being active for the rest of my life?” So in 2008, with $500 in capital, she started her

own practice in Bloomfield, New Jersey. She took a dancer’s approach to stretching, with a twist, and dubbed it the “Kika Method.”

“We teach you how to lie limp, how to let go,” she says. “When we notice you tensing up, we tell you to start over.” Starting up was tough; as a single mother, she was stretched thin. An early location was in the basement of a Turkish restaurant, where “you could literally smell onions,” Wise recalls, but clients didn’t care. They kept coming back for more. Now, Kika Stretch Studios has seven locations across five states—and has survived everything from a fire to the growing pains of franchising.

What’s the hardest thing that happened when you were starting out?

In 2015, I had two locations and hadn’t even franchised yet, when the main location caught on fire. My brother came to my house early in the morning and was like, “The studio is on fire.” I thought he was joking and planning a surprise or something. But then he drives me to the studio—sure enough, it’s on fire. I’m standing there, and next to me is this guy looking at the window, and he’s like, “I just bought a [stretch] package, what am I going to do?” I wanted to look at him and be like, “Dude! That’s my business on fire!” But then I realized this was not just about me. It gave me the strength to continue. I had clients to serve.

What was the rebuilding process like?

That night of the fire, I was just sitting in my car crying,

but after a while, I looked at the church on the corner and I was like, OK, what if I can use space in there? Sure enough, for nine months, we were operating out of the church basement. There were pipes, old radiators—it was a basement-basement— but I didn’t have to go out of business. We actually grew clientele.

What prompted the shift into franchising?

I was driving to my second location with my son in the car, and I was so exhausted I literally took a 45-minute nap in the McDonald’s parking lot. That’s when I was like, I need help. So I fired myself from the daily operations of my second location, and taught the manager how to run dayto-day operations to see if the business could thrive without me. That was definitely the first step. You have to make sure that the business can run with someone else who you teach. If you’re able to do that and still make money, then you’re onto something.

What advice do you have for people who might want to take the leap into entrepreneurship, but aren’t sure?

I always say, when you’re on your deathbed, what are you going to regret? If you have anything you would regret, that’s something you need to do right now. You get one journey in this body. You might as well do what you want to do. If you fail, who cares? People say, “Well, I have bills,” and I’m like, “You’re going to die with bills.” Don’t let that stop you from dreaming.

“I

“Iwasreallyinterestedinstartingasmallbusiness.Myfavoritepart ofowninganOLPfranchiseisthefreedomIgetwithmyfamily, timetotravel,andthefreedomofnotbeingtieddowntoa9-5.”

WHY OLP

• America’sfirstandmosttrustedlandscapelightingfranchise -25yearsyoung!

• Over115locations

• $770kaverageunitvolume

• 53%averagegrossprofitmargin

• Outstandingmarketingandfinancialtraining,andoperationalsupport

• Strongclientacquisitionstrategy

• Scalablewithmultiplerevenuestreams -Residential,Commercial,andHolidayopportunities

WHY YOU

• Noelectricalordesignexperiencenecessary

• Flexiblehomebasedbusiness

• Minimalstaffingneeds

WHY NOW

• $26Billiondollarindustry

• Outdoorlightingwasthe#1mostcommonoutdoorsysteminthe2022 Houzz&HomeStudy(22%ofoutdoorprojects).

CONVERSATIONS

A Franchise Nonprofit?

Jamie Trujillo bought a for-profit business, but wanted to reach the people who couldn’t afford her services. So she made a radical change. by MADELINE GARFINKLE

Can a single franchise location be transformed into a nonprofit?

That’s what Jamie Trujillo wondered only two months after becoming a Challenge Island franchisee. The question came from her deep sense of mission. Trujillo had always been what she calls a “stereotypical teacher’s pet,”

and spent 14 years working with an adult education nonprofit. Then she discovered Challenge Island, an afterschool STEM program for kids with 145 locations in the U.S., and became a franchisee in Albuquerque, New Mexico, in 2019. “It was an expansion of my calling,” Trujillo says. But she soon found an age-old problem: Her programs were

too expensive for the kids who needed it the most. Trujillo could think of only one solution—to turn her business into a nonprofit. Challenge Island agreed to help her, and she is now the company’s only franchisee with nonprofit status. Here, she explains how that decision unleashed her business’s true potential.

Walk us through the process of getting nonprofit status. So, the first step was to find volunteers for our board. Then I drafted our nonprofit bylaws, and filed for nonprofit status with the Secretary of State and the IRS. Then we started writing applications for grants, and focused on the highest-need neighborhoods. We went from small grants, like the Walmart Foundation, and eventually the city of Albuquerque started paying for me to provide summer, after-school, and family programming at as many community centers as possible.

It was easy for me to say, “As a nonprofit, this is what I’m going to do for you, and here is my budget,” because Challenge Island has been in existence for almost two decades and has an established curriculum that aligns with standards.

One of your goals has been receiving grants for more Native American students. What’s been your focus in those communities?

One thing I’ve focused on— and this is not just for the Native American population, but it has affected them—is family literacy. That means it’s not just the kids working on Challenge Island activities, but their parents, too.

During the pandemic, one

family I worked with virtually was a Native American mother and her two sons, who were nine and seven. At first the mom was very shy and didn’t want to be on camera or talk about herself. But over the course of a year, she started getting on camera and showing me things she and her kids were creating together. They made pirate ships out of Coca-Cola 12-pack boxes—I’m talking, like, a multi-masted pirate ship on wheels. It was huge! She was making mazes out of pizza boxes, with mini putt-putt courses and cityscapes and things like that. These activities are low risk, so the mom had an opportunity to get creative and just try things. She talked about how her sons were getting along better, learning to work together. That was a huge success story for me, because I saw a shift. Now she’s working toward her high school equivalency.

What would you tell other franchisees interested in going the nonprofit route?

I know other franchise owners in the process of or considering building an arm of their business that is nonprofit while keeping their forprofit side, and I think that’s awesome. The financial bottom line is a reality. It’s very important. You have to keep revenue coming in to make a business survive.

But if you take the time to look at your community impact, and if there is none, maybe that’s an opportunity to shift what you’re doing a little—whether you’re accepting volunteer help for certain community projects, or donating time or goods. There’s always an opportunity for impact.

HOW MUCH CAN I MAKE?

It’s what everybody wants to know before buying a franchise—and although there’s no guaranteed answer, you can learn a lot by asking the right questions. Here’s how.

by MARK SIEBERT

Illustration Mariaelena Caputi

So you’ve decided to buy a franchise. You’ve done your research, and have narrowed it down to a short list of companies that excite you personally, are profitable, and have management teams you are willing to bank on. Still, you haven’t answered the most important question: What can I earn? Obviously, the main reason most people buy franchises is to earn money, but no good franchisor would ever answer that question directly. They would have far too much liability if they did. A franchisor should instead provide you with some guidance to help you make that estimate for yourself. The key to making that calculation starts with something called the “financial performance representation,” or FPR.

Where would you find the FPR? In many Franchise Disclosure Documents (FDDs), which a franchise will provide when you’re considering becoming a franchisee, you will find the FPR in Item 19. Almost always, the FPR focuses on historical results that have been achieved by the franchisor, its affiliates, its franchisees, or some combination of the three. The FPR may come in the form of an income statement, but more often, it will focus on some of the key variables that will dictate income (and will enable you to develop a pro forma income statement based on those variables). The format and utility of these FPRs vary from franchisor to franchisor.

Be aware that franchisors are not required to provide their franchisees with an FPR. In the early days of franchising, the use of an FPR (then called an earnings claim) was more the exception than the rule. In fact, in the late 1980s and early 1990s, less than 20% of franchisors provided one. Many were reluctant to share this data out of fear that it would result in litigation and were often warned against it by their lawyers. But over the past few decades, there has been a strong reversal of opinion on FPRs; by most estimates, the majority of franchisors provide at least some information in Item 19. In a 2018 study that looked at 1,497 FDDs, Rob Bond, president of the World Franchising Network, found that 61% included some kind of FPR.

Why no FPR?

If a franchisor does not have an FPR, its absence will make it difficult for you to estimate your revenues and profits. And while the uncertainty of your projections will increase your risk, that does not necessarily mean you should immediately eliminate the franchise opportunity from consideration.

The (good and bad) reasons franchisors might not provide an FPR:

1 The franchisor may believe the units it could use for an FPR are, for some reason, not typical of what a franchisee might expect to make. In fact, it may believe its own performance will be stronger than the performance of the franchisee and may have avoided the FPR in order to be more conservative. For example, perhaps a given franchisor has a unique location or has been in business for decades serving one community where the brand has become iconic. Perhaps the franchisor is franchising only part of its current operation, based on the belief that the franchisee needs to start with a less complicated business (perhaps evolving later to a fuller line of products or services).

2 The franchisor may believe it will incur greater legal exposure by making an FPR (although this is probably not true, assuming the franchisor uses historical financial information as the basis for the FPR). Still, their attorneys may want the brand to approach the issue of financial disclosure with absolute, extreme caution.

3 The franchisor may not want to disclose unit-level financial information out of fear that its competitors could use that information to their advantage.

4 The franchisor (especially newer franchisors that have conducted most transactions at the unit level in cash) may historically have been understating its sales to the IRS to reduce its taxes, and now it cannot substantiate its actual levels of sales based on its own historical numbers.

5 A new franchisor may not have an adequate operating

history on which to base an FPR. For example, its locations may have been open less than a full year.

6 The franchisor may have recently opened a new prototype that will be the basis for the franchise program, but it does not want to provide that information for fear of liability.

7 The franchisor may fear that its historical financial performance does not compare favorably with its competitors.

Obviously, those last few reasons should be of some concern to you as a prospective franchisee, and you should add those questions to your list for further discussion with the franchisor if it does not provide an FPR.

But regardless of whether the franchisor supplies an FPR, your next job must be to develop an estimate of what you can expect to earn as a franchisee. This is your most important task before purchasing any franchise.

Use, but never rely exclusively on, an FPR.

When doing your research, nothing should make you happier than finding that a franchisor has provided an FPR. Generally, that means the company thinks it has something to brag about from a financial perspective. Moreover, it is making your job easier by telling you up front what kind of financial results some of the units in their system are achieving.

If a franchisor supplies an FPR, you should definitely use it as a starting point. Most FPRs will provide you with great information, and you (and your accountant) should read them very carefully to be sure you understand how to use them in your business planning.

However, as you go through this process, it’s worth keeping this old saying top of mind:

The and bad) reasons franchisors not an FPR:

Use, but never on, an FPR.

well as staff. Do some digging. And if you are not good with numbers, now is the time to get your accountant involved. (Either way, you will want them to look at your projections. More on that later.)

Also remember that no government agency has done any real due diligence on the document you are reading. It is up to you to be sure you are getting reliable information.

As you are reviewing the information in the FPR, note the format the franchisor uses to present the information. Franchisors in the same industry may present very similar information in slightly different formats—so carefully note those differences. As you may have noticed, there are hun-

dreds of different ways in which earnings information can be presented.

Some franchisors include historical income statements— perhaps modified to incorporate line items for advertising fees, royalties, and other fees you may incur as a franchisee. These may be the best types of FPRs, as they allow you to compare the numbers you think you can earn with those that were historically achieved by the franchisor—but don’t rely on them too heavily in your planning, as your market conditions may be different.

Other franchisors are somewhat less forthcoming with their numbers. Some may choose to only disclose sales

numbers. Some may limit it to average selling prices, average sales per square foot, average sales per salesperson, or any of a variety of other indicators. Fitness clubs may be broken out by number of members. Automotive franchises may focus on the number of vehicles serviced per day.

Restaurants may show food and labor costs but not occupancy (as this is often best determined on a marketby-market basis). Hotels often include occupancy rates in their FPRs to enable you to project revenue based on the size of your facility.

If a franchisor does use a historical FPR, you can ask to see “written substantiation for

the financial performance representation” and the franchisor must provide it. So if you are not clear how the numbers were derived, ask.

Don’t do until crunched

Don’t do anything until you’ve crunched the numbers.

Regardless of whether the franchisor supplies an FPR, you must develop a pro forma statement of cash flows (which basically predicts how much revenue will come in and the expenses incurred during a given period, so you can understand your cash requirements and your profitability over time) for the franchise opportunity you are considering. In doing this, you

should exclude some items you would normally find on an income statement, like depreciation, amortization, interest, and taxes, leaving you with a bottom line typically referred to as EBITDA (earnings before interest, taxes, depreciation, and amortization).

Let’s break down the elements of EBITDA and why they are excluded. Depreciation and amortization are noncash entries that (other than reducing your taxes) will not impact your cash flow. We omit taxes from our analysis because most of your alternative investments are subject to tax in any event—so this allows us to better compare apples to apples. And we do not want to look at interest or debt service, as those numbers are a result of your deciding how to finance your business, not a function of which franchise you purchase.

This being said, your accountant may point out ways in which you can use a business to shelter otherwise taxable income. (Business necessities like the corporate Mercedes might fall into this category.) Finding these legal loopholes is worth the cost of hiring an accountant in the long run. Unless you have a background in finance and accounting, you should get your accountant involved early. And even if you do, you will want to have an accountant review your work before you finalize your decision.

As a first step, you should derive cash flow estimates for a “mature” franchise—one that

is at least two to three years old. This will allow you to measure the long-term returns offered by the franchise, as many businesses (especially in the service sector) are not very profitable (if at all) in their first year or two of operations. Of course, you will have to estimate first-year cash flows separately when calculating your required investment to be sure you have adequate working capital.

Once you have these numbers, you will have a good idea of what you can expect to earn from your franchise. So let’s start crunching numbers. (Really. It’s not that bad.)

Deriving numbers when there is no FPR.

If a franchisor does not provide you with an FPR, you will need to get creative to accurately estimate the revenue your business can earn. But first, a word of caution: In virtually every business plan I have ever read, there is a tendency to overestimate sales and underestimate expenses. This can be disastrous! When franchise prospects make projections, they often gravitate toward the numbers achieved by the top performers in the system on the assumption that they are smarter, will work harder, and will work longer than the average franchisee. And while that might be true, I can assure you no one ever bought a franchise believing they would be on the lower half of the performance curve. Yet, by definition, half of all franchisees are.

In virtually every business plan I have ever read, there is a tendency to overestimate sales and underestimate expenses. This can be disastrous! In every business I have ever there is a to overestimate sales and underestimate expenses. can

Estimate low on revenues and high on expenses, and any surprises you receive will be happy ones. Expenses you should build estimates for include cost of goods sold, labor, rent, benefits and taxes, utilities, “plug” numbers (royalties, advertising assessments, or other ongoing fees charged by the franchisor), debt service, and other operating costs.

Now let’s talk about how to build those estimates. There are several different methods you can employ, and you should try all of them. Each method will result in a different figure. When making your final estimate, you should lean toward the methods that gave you the lower numbers, for the sake of being conservative.

Let’s look at some of these methods.

Ask someone who

owns one.

This is perhaps the most important step in the entire process of making your decision. If the franchisor has existing franchisees, you should speak to as many of them as you reasonably can.

Every FDD must provide a list of current franchisees in the system, along with their names, addresses, and phone numbers. You’ll find this information in Item 20 of the FDD. It must also disclose contact information for franchisees who have been “terminated, canceled, not renewed, or otherwise voluntarily or involuntarily ceased to do business under the franchise agreement during the most recently completed fiscal year.” Call them!

Be sure you contact a large enough sample to give you a good cross section of results. For example, speak to newer franchisees as well as those who are better established. Talk to franchisees who are located fairly close or in your

target geographic market. Talk to happy franchisees (current ones, presumably) and unhappy franchisees (those involved in litigation or who have been terminated, for example). Speak to franchisees who are operating in a similar type of location (strip mall, street front, etc.). And as much as you can, target franchisees with a similar background (for example, if you have no industryspecific experience). The franchisor may be willing to provide you with enough background information to identify some of these people. From a statistical point of view, you will get the most reliable information if you keep your sample random and your sample size is larger—but do work in these subsets.

If you are speaking to a franchisee who failed, you will certainly want to know why, and they are equally certain to give a bad reference when asked about the franchise. You will have to decide whether their opinions have merit and whether you can envision yourself on their side of the fence someday. You will definitely need to take some of what they say with a grain of salt. I have never found a failed franchisee who attributed that failure to his lack of intelligence or hard work, although clearly some do fail through their own fault alone.

Of course, no business can ever guarantee success, even if a franchisee is a good fit. But a large number of failed franchisees may have implications for the franchisor’s support system, business model, or selection process. If that last one is systemic, it points to problems with quality control (too many dummies spoil the broth!) and future failures within the franchise system— maybe even your own. So be careful if every franchisee you speak with sounds as if they

took one too many punches to the head.

When you do talk to these franchisees, ask specific questions. Ask them about their revenues—not just today, but when they started up. Ask them how long it took them to break even. Ask them about every cost element on the income statement. And, of course, ask them specific questions about the support provided by the franchisor. In particular, how helpful was the franchisor in the early stages of their business?

Stay away from generalities. Ask an easy question, get a meaningless answer. Try to avoid yes-or-no questions.

Here are some sample questions to start out:

▶ How long have you been a franchisee in this system?

▶ What was your background before you joined as a franchisee? What factors led you to decide to become a franchisee of the brand?

▶ Can you tell me about the support the franchisor provided prior to your opening? Site location, design assistance, construction assistance, and training? What did they do well, and where did they fall short?

▶ Do you feel the franchisor’s consumer marketing efforts are productive? Why or why not?

▶ How long did it take for you to become cash-flow positive in your business? Looking back, would you say the franchise was a good business investment for you? (If no, ask them why not.)

▶ How many years did it take you to fully recover the investment you made in opening your franchise? And that’s just the start.

These questions are intentionally arranged to begin with broad, seemingly harmless generalities before moving to more specific questions at the end. This allows you to build trust with the franchisees before you start asking for details. And even if you do not get these latter questions answered, hopefully you will still have gotten some valuable information.

Remember, franchisees in general want you to join the system. When you enter the system, they gain advertising power and purchasing strength, as well as broader exposure of their brand name. But not all franchisees will be motivated to get you to join. For example, if you are speaking to a franchisee who wants to expand into the territory you’re interested in, they may not want to be helpful at all. Moreover, franchisees want to reinforce the decision they themselves made. Once people decide to do something, they want to find reasons to support that decision. In psychology, it’s called rationalization. If we spend tens or perhaps hundreds of thousands of dollars, we don’t want to feel like we made a mistake. We may overlook minor flaws in our purchase and rationalize them with overstatements of its good qualities. So too with franchisees. Be careful of their responses. In general, however, you’ll find most franchisees are willing to share their honest experiences with you. And as you speak with more and more franchisees, you’ll begin to see commonalities in their responses, which is another reason to speak with as many franchisees (and former franchisees) as possible. Their combined input will be the most valuable source of data in your due diligence process. Be sure to supplement your questions with others based on information

I can assure you no one ever bought a franchise believing they would be on the lower half of the performance curve. Yet, by definition, half of all franchisees are.

I can assure you no one ever a franchise would be on the lower half of the curve. half of all are.

in the FDD, what you have learned through your own research, and anything else that might be relevant to the franchise opportunity you are considering.

What about new franchisors who have not yet sold a franchise? If you are considering becoming a franchisor’s first franchisee, you need to satisfy yourself that the concept or the people behind it are ready for prime time—preferably both. And you need to exercise particular diligence when trying to estimate potential returns. If there are no franchisees you can call, you need to factor that into your risk calculation—and be certain the returns offered more than make up for that degree of risk. That’s not to say that being among the first franchisees in a system is a bad thing. Many franchisees have benefited from joining an emerging franchise system early in its development. It just requires an additional level of due diligence and a willingness to assume a higher level of risk in exchange for a greater anticipated return.

Using the franchisor’s income statement

Asecond method of estimating revenues involves the use of the franchisor’s income statement, found in the FDD. While the franchisor will not disclose unit revenues in these statements, there are ways to make a guesstimate.

If the franchisor runs company-owned operations through the franchise com-

pany, there may be a revenue line in the statement reflecting revenue from corporate operations. If you can find it, simply divide that number by the number of units owned by the company to get average revenue per unit. This number will, of course, be influenced by any units that opened or closed during the period, but it will at least give you a rough estimate. Unfortunately for this method, most franchisors create a separate entity (or more than one) for corporate locations. This data is often not shown in the franchisor’s income statement.

If there are no company operations, some income statements have a separate line item detailing franchise royalties. Dividing that number by the number of franchises will yield the average royalty paid per franchise. Divide the average royalty by the royalty rate, and you have an estimate of average revenue per franchise. (For example, if the average royalties paid per store were $40,000 and the franchisor charged a 4% royalty, you would divide $40,000 by 0.04 to find an estimated average unit volume of $1 million.) There are a couple of dangers in these methods. Watch out for the following:

1 If company-owned units or franchises opened during the course of the year, both of these methods could understate anticipated revenues (since some units achieved less than a full year’s performance). If you can determine

how many opened during the year, you can cut that number in half and add it to the number of units open for a full year to give you a rough estimate. Note: Generally speaking, the more “young” units a system contains, the more revenues will be understated, as these units will typically be at the early stages of their revenue growth curve.

2 Conversely, if franchisees ceased operation during the course of the year, chances are the number of franchisees would be accurately reflected in the disclosure document while the revenues might be inflated thanks to some income from these now-defunct franchisees. In this case, your estimate of your revenues could be overstated, since it would assume each existing franchise brought in more money than it actually did.

3 Read the notes to the financial statements extremely carefully. Some accountants may lump franchise fees, royalties, and other fees together under “franchise fees.” This will invalidate your analysis. Caution: Using numbers derived this way will overstate your anticipated revenues! Use these numbers only if you can back out all nonroyalty revenue.

4 Another thing you have to watch for, especially with franchisors who have been around for a while, is changes to the royalty structure. If the franchisor has increased its royal-

ties, some older franchisees may still be paying the lower rate. Using the current royalty for all franchisees would understate your anticipated revenues.

5 If franchisees are not paying royalties (you can usually determine this by looking through the litigation section, if it has gone that far), revenues might be understated. Of course, you may have a larger problem to worry about.

6 Finally, be careful you are not dealing with one of the franchisors whose royalties are based on gross margins. If you are, as is sometimes found in the temporary help industry, you can use the same formula to determine gross margin. But if the franchisor charges a flat fee, you won’t be able to get any useful information, and if it derives its revenue from product sales, this method will not work. (You also need to watch out for franchisors charging a royalty or a flat fee, whichever is higher. When flat fees are paid in lieu of percentage royalties, estimated revenues will be overstated.)

Comparing Item 19 data from competitive franchise systems

If the franchise concept you’re considering has an Item 19 disclosure, you can obtain FDDs for their primary competitors and see if they disclose the same type of information. For example,

most restaurant franchisors typically disclose revenues, cost of goods, and labor. If you’re considering a concept where the cost of goods is 32% and their direct competitors are all at 26% or less, that should raise a red flag. You should at least ask the franchisor why their cost of goods is so much higher than everyone else in the category. While there may be reasonable explanations for these variations (e.g., a franchisor may have a higher cost of goods because it uses better ingredients or intentionally charges lower prices), evaluating competitive FDDs will give you another point of comparison.

Using performance requirements

There may be other information in the FDD that can give you clues as to what the franchisor expects you to earn, often in the form of minimum performance requirements. If these exist, they would be disclosed in Items 6 and 12 of the FDD.

For example, the franchisor might have a performance requirement calling for a certain level of sales. Usually, franchisors with such a requirement use a relatively low estimate in the hopes that most franchisees would be able to meet it.

Many consumer service franchises (e.g., carpet cleaning, home inspections, etc.) require their franchisees to achieve minimum performance criteria to retain their franchise rights. If such requirements exist, they must be detailed in Item 12. For example, the franchisee may be required to achieve minimum revenues of $150,000 in their first year, $200,000 in their second year, and so on. Franchisors incorporate these requirements to assure themselves that an underperforming franchisee will not tie up

a territory that should be generating much higher revenues (and royalties). If the franchise you’re investigating has such requirements, you may want to compare them to the competition. You can also ask the franchisor how many franchisees have failed to meet the minimum requirements, and how it has responded to that. Have they terminated franchisees on this issue alone? Have they allowed underperforming franchisees to remain in the system but reduced the size of the protected territory?

Some franchisors, instead of using a sales-based performance requirement, may require a minimum royalty, as opposed to a percentage royalty—for example, the contract might specify a monthly royalty of 6% or $2,000, whichever is greater. While this is not a performance requirement per se, it does provide guidance as to minimum revenue expectations.

When a franchisor sets a minimum royalty requirement, it is generally an attempt to minimize the royalty erosion that could take place if a franchisee were to underreport revenues or to offset the franchisor’s costs during the startup phase of a franchise. The franchisor’s reasoning usually goes something like this: Well, at a bare-bones minimum, every franchisee should be able to generate a minimum of $400,000 a year. At a 6% royalty, that would be $24,000 per year. So I’ll charge a $2,000-a-month minimum royalty.

Thus, if you want to derive that minimum sales number the franchisor had in mind when it set the minimum royalty, first annualize the minimum royalty payment by multiplying the monthly minimum by 12. Then divide the result by the royalty, as we did previously ($24,000 / 0.06 = $400,000), to get the franchi-

sor’s idea of a required minimum level of sales.

The danger in this method is that the franchisor may have grossly underestimated or overestimated the level of sales you should achieve, either because it is too aggressive, too conservative, or simply doesn’t know any better. Thus, this methodology should be used more to confirm sales levels than to predict them.

Estimating based on observation

Another means of determining your estimated sales is through direct observation. While this may not work well for service-based franchises, where you can’t stand in the location and observe lines of customers, you should be able to get a good feel for the sales volume of retail stores and restaurants if you have the patience.

This method is simple but time-consuming. Just go to a unit and watch people spend money. Even from outside the unit, you can count the customers going in and make an estimate, based on the average prices, as to how much each one will spend. Multiply average daily expenditure estimates by the number of days the establishment is open, and voilà! You have your estimate.

The downside to this method, aside from the time required, is the statistical aberrations that can occur when doing a limited sample. If, just by chance, you observe the unit on several especially good or bad days, your estimate could be off significantly. Thus, this method works best when you observe multiple units over an extended period of time.

Several cautions are in order if you choose this method:

If the unit is locationsensitive or is affected by other variables you have not

identified, your revenue estimate could be off. Try to observe units that are similar in most respects to the one you plan to open: similar locations, area demographics, size, etc. If it is a restaurant, the presence or absence of a drive-thru window could have a significant impact on revenues.

If a franchisee is running a promotion or advertising heavily, it may impact your projections. Factors like the weather may impact your observations. Watching a business in inclement weather may result in an estimate that is too low, while watching only during good weather could result in estimates that will be somewhat high.

Be careful about when you observe the unit. If you only go to a restaurant during the lunch hour, you may see a unit that is constantly busy, but only because you are observing during the rush. If you only watch it on the weekends, you may get a similar misimpression.

Watch out for seasonality! Some businesses, particularly those in malls, may do more than 40% of their annual sales volume in November and December. Others may be heavily skewed toward summer usage or particular holidays.

While estimation by observation can provide you with a good deal of insight, it should be used to supplement and verify your other estimation techniques, as the small number of units you can observe (and the various aberrations that will almost certainly creep into your analysis) will limit the reliability of your data.

Estimating by the book

Another (perhaps less accurate) alternative is to use industry averages to give you an approximation of these numbers. For example,

If you are a franchisor’s first you need to that the concept or the people behind it are for prime both.

If you are considering becoming a franchisor’s first franchisee, you need to satisfy yourself that the concept or the people behind it are ready for prime time—preferably both.

some industry associations like the National Restaurant Association or publications such as Nation’s Restaurant News publish periodic guides to operating statistics that allow you to estimate an “average” unit’s financial performance. Studies by the Risk Management Association, Dun & Bradstreet, and others can provide insight into a number of industries. And of course, the internet contains reams of information—some of which may or may not be accurate—to help you with this research.

The danger in using industry averages to estimate your performance is that you may not achieve it—either because your franchise does not perform as well as the industry as a whole or because you underperformed. Likewise, in doing this research, often the categories into which your statistics fall (e.g., full-service restaurants, fast-casual restaurants, etc.) may be too broad to be meaningful in deriving certain elements of your financial model. For example, McDonald’s and Subway might both be lumped into the fast-food category, but their unit economics have very little in common.

Just ask!

The last way to estimate revenue numbers is more direct—just ask. Even if the franchisor cannot answer your questions, others might. Try talking to the landlord for one of the system’s fran-

chisees. If you approach them about renting a space to house a marginally related business, they might give you an idea of how that franchisee is doing.

Most importantly, you need to ask other franchisees. They can be your best resources for questions such as these and are absolutely essential to your research process.

One last word of warning: Almost everyone you talk to has a hidden agenda, so everything they say should be treated with caution. A franchise salesperson wants you to buy a franchise. A landlord wants to impress you with how high the volume in their property is. Even other franchisees have a hidden agenda: When you join the system, you increase their advertising and buying power. And most people don’t want to admit it if they’ve made a bad decision. So be wary!

The bottom line in all of this: Do not buy a franchise until you’ve looked under every rock and investigated every possible problem. Before you make your final decision, you should be able to say you have done everything you could possibly do to investigate your choice. Because there is really no way to know how much you’ll earn—until you’re out there earning.

This article is excerpted from the book The Franchisee Handbook, by iFranchise Group CEO Mark Siebert, published by Entrepreneur Books. Buy it from entrepreneur.com/ bookstore.

SHOULD YOU BUY A FRANCHISE DURING A BAD ECONOMY?

The answer is yes, so long as you buy wisely. That’s why today’s potential franchisees are asking tougher questions before signing on.

by KIM KAVIN

We all have big questions about the economy. Are we heading into a recession? Are we already in one? How high can interest rates go? Will inflation cool anytime soon? How long will “help wanted” signs linger? But in the franchise world, people are often asking this: Is now still a good time to buy a franchise?

Industry experts say yes—but your approach should be different than in boom times.

First, let’s consider the emotional reality: “We have more people interested in owning and operating franchises, because they just don’t have the same belief system in the old-fashioned, stable job,” says franchise executive coach Rick Grossmann, coauthor of Franchise Bible. The pandemic caused many people to see long-term jobs as precarious, single streams of income.

As a result, many went into business for themselves. In the past year alone, some 83% of people surveyed said the pandemic accelerated their plans to start their own businesses. According to the U.S. Census Bureau, even after the wave of business creation in 2020 and 2021, corporate registrations were still above pre-pandemic levels in 2022.

Everyone seems to want more flexibility, resiliency, and control—and that’s exactly what attracts many people to franchising. Plus, Grossmann says, a strong economy that started a few years before COVID hit—and a strong real estate market—have created a very qualified group of franchise buyers. “People have a lot of equity in their homes, and there are still people with money in the bank and good credit,” he says. “It’s a perfect storm for franchise ownership.”

But that’s not to say it’s a gold rush, with people grabbing any opportunity they can. Quite the opposite: Industry insiders say they’re seeing increasing selectiveness among prospective franchisees.

“The number of brands that franchisees are considering right now has been reduced,” says Joe Malmuth, chief franchising officer at Batteries Plus. “They used to look at three or four; now they’re looking at one or two. And it’s not the same mix they used to consider. They’re very focused on fast food, but only with drive-thru. It’s home services, but it has to be essential services.”

In other words, people are not just looking for any opportunity— they’re looking for the right, stable opportunity for right now.

So, how can you figure that out for yourself? Start with five key questions—each of which will help you identify a brand’s strength and stability, and help anticipate what might come next.

QUESTION 1

How resilient is the brand, and for how long?

In 2021, potential Batteries Plus franchisees would always ask the same question: How did the brand do during the pandemic?

But now they’re drilling deeper, Malmuth says. Some will also ask how the brand did during the Great Recession from 2007 to 2009, and some even investigate as far back as the dotcom bust.

They’re also asking different questions depending on their age—because the age of a potential franchisee has started to radically shift.

These days, Malmuth says, about half of franchise buyers are millennials, meaning many of them were still schoolkids when the dot-com bubble burst in the early 2000s. “They saw what the last recession did to Gen X and Baby Boomers,” he says, “and now they’re in a position to make that decision themselves.”

That means they’re approaching with caution, but also optimism. They want to ensure as much stability as possible, because they like to think of franchise ownership as a job you can’t get fired from, Malmuth says. For this reason, he says, he also talks to them about franchise ownership as a way to add new streams of income to their lives—because they might be able to work a day job and have a franchise on the side, or eventually buy multiple franchises. “It’s the same mentality as having a diversified portfolio,” he says.

Meanwhile, older franchisees are thinking about a different kind of resilience. They often see franchises as a more resilient form of a retirement plan: As they near retirement age, they feel more comfortable with their money inside of a business than having it in the stock market.

“There’s a lot of franchise opportunities that you can get into with a couple hundred thousand dollars from your 401(k),”

How resilient is the and for how

says Jason Anderson, president of the flexible-workspace franchise Office Evolution. “People are now looking to do something else with that 401(k), and they see an opportunity to make a higher return.”

Older franchisees are also thinking about resale value. They want to know if, when they retire and sell their franchise, they’ll be able to get good value for it. “We want to help them maximize their return on investment,” Anderson says, “even if it means selling their location.”

Anderson believes that franchisees will be in a good spot to do that. “A franchise operation can sell for a little more than a mom-and-pop business,” he says. “If you buy Jim’s Burgers and Jim is no longer there, people wonder, Where’s Jim? Customers may not want to be there anymore if they don’t like the new guy. With a franchise, that’s not always an issue because there’s a system in place. The brand has a value that’s independent of the owner.”

QUESTION 2

Is this business essential?

The term essential business took on a whole new meaning during the pandemic, as it became the dividing line between which businesses could operate during lockdowns and which couldn’t. Today, potential franchisees are using the phrase in a different way: They want to know which brands are essential to people’s lives—and which products or services customers will stick

with, no matter what.

That type of thinking is driving interest at many different brands, including Floyd’s 99 Barbershop. “Most people can’t cut their own hair,” says Joe Zemla, the company’s senior director of franchising. “People have to get their hair cut.”

When potential franchisees ask how the company did during past economic downturns, Zemla and his team are happy to share the numbers.

The Great Recession drove some of Floyd’s strongest years, and the brand’s franchise shops had their highest number of new shop openings in 2021. “It was a 20% growth rate in 2021,” he says.

“And also, several of our existing franchise partners signed new development agreements during COVID. That shows us that they have confidence in us as a brand, especially at such a challenging time.”

What else is “essential” these days? It’s varied. Luke Schulte, executive director of franchise development at Handyman Connection, says his business model is essential because handymen work on small-but-important renovations that homeowners and business owners continue to need during down times.

“Those small-to-mediumsized projects will always be there, regardless of what’s happening with the price of supplies and bigger projects,” he says.

Brands will also point to certain elements of their services as a way of identifying what will keep customers com-

[Franchisees] want to ensure as much stability as possible, because they like to think of franchise ownership as a job you can’t get fired from.

ing back in hard times. That’s what Joe Hummel does as the CEO of lodge-themed restaurant Twin Peaks. Because his restaurants also function as sports bars, he says, they can feel like an essential part of consumers’ lives—even if those consumers start cutting back on dining out overall.

“Sports are never going away,” he says. “We own the sports market. When you look at our brand being married with sports, people see us as a safe harbor.”

QUESTION 3

Is the brand adapting to a changing economy?

People have had to get creative these past few years. They’re changing careers, rethinking their lives, and adjusting their spending habits. Now they’re asking if brands can do the same.

Doug Bostick, president of quick-service Italian restaurant brand Fazoli’s, has ready answers. Among them, he says, the brand has gotten creative about solving its labor shortages. One solution: Fazoli’s started prompting consumers to add a tip to their bill, despite tipping not historically being the norm in fast-casual spaces.

“To me, it’s a negative for our guests, for the consumer. But I tested it, and the guests seemed to want to participate in it, so we rolled it out. We have it in about 75% of our franchise locations now.”

Fazoli’s has also found ways to lower franchisees’ startup costs—in part by helping them build out locations in existing, repurposed restaurants. “We have been converting Steak ’n Shakes, Pizza Huts—something that already has a drive-thru on it,” he says. “Everybody wants a brand-new building, but in today’s world, a second-gen build cuts off almost two-thirds of your cost.”

Hummel has found similar savings when helping franchisees select locations for Twin Peaks.

“You get probably a 30% reduction in build-out costs with a second-generation rebuild,” he says. “We’ve converted so many types of buildings. Our brand—our ambience—lends itself to a lot of different structures. We need street presence and parking. We can make the rest of it work.”

Malmuth, of Batteries Plus, says that new franchisees also like seeing brands adapt to new ways of marketing. They want brands that can reach consumers wherever they are.

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“That helps inflate the average hourly wage,” Bostick says, which in turn builds employee loyalty and drives down turnover. The average worker can see almost an extra $1 per hour because of the change. “It was one of those things where, two or three years ago, I just didn’t want to do it,” Bostick says.

“The one thing the pandemic did was change where you market and how you market,” he says. “We’ve seen an uptick in advertising when you log into something like Netflix and Hulu, and they play an ad right at the top. We’ve shifted advertising to that because that’s where the eyes are.”

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QUESTION 4 Is the franchise compatible with a day job?

There was a wave of new franchisees during the pandemic. Now comes the second wave—it’s those new franchisees’ friends, who watched what happened and were inspired to follow along. But these people are not always ready to swap their day job for a franchise. Instead, brand leaders say, they’re often hearing from prospective franchisees who want to do both.

For that reason, more franchise brands are now promoting the idea that people can buy in without giving up an existing career. Handyman Connection, for instance, started offering a manager-led business model in the past year.

“Before, we wanted somebody who was going to come in and work the business 40 hours a week,” Schulte says. “You were the general manager who did all the hiring and customer management. Now, we have a model for our franchisees that hires a manager to do the heavy lifting, and you manage the manager. You need more capital to do that, but you get time back. Maybe you put 20 hours a week into the business instead of 40 hours a week. That way, you don’t necessarily have to quit your job.”

What’s driving the shift? Leaders trace it back to another shift in work: As hybrid and remote work seem here to stay, workers are thinking more creatively. “Time off and time on has gotten fuzzier,” he says.

“You can take a call from your manager pretty much anytime, instead of having to sneak out at lunchtime from an office.”

Jason Stowe, vice president of franchise development at Cyberbacker, says he’s seeing a lot of real estate agents and business coaches show interest in his brand for similar reasons. Cyberbacker provides virtual assistants at an affordable price point. While a real estate agent might have to pay about $45,000 for a full-time administrative assistant, he says, Cyberbacker can provide the same level of assistance for $1,300 to $1,800 a month—a sales pitch that one real estate agent can give to others during downtime.

“They can continue doing what they do,” Stowe says, “but now they have an opportunity to create wealth in a different form, utilizing the network they already have.”

Of course, there are also franchises whose entire business model is premised on flexible work. That includes Office Evolution, which provides flexible workspaces and is increasingly serving people who can work from home, but still really want to get out of the house.

“We’ve seen a surge in coworking demand,” says Anderson, Office Evolution’s president. “We’re seeing corporations move their people out of traditional office space and into flexible office space. We have law firms that will rent our conference rooms for a week to handle depositions. We have international language teachers who come

There was a wave of new franchisees during the pandemic. Now comes the second wave—it’s those new franchisees’ friends.

was a wave new franchisees the Now comes the new

If there really is an economic crash, consumers will change their spending habits. They’ll buy less and become more price-sensitive. with a consumers still afford

in to work in the middle of the night because of the time zone differences.”

Even sectors like insurance, which have always had a downtown presence, are now turning to this model, he says. “If you drive down Main Street, there’s some random office where an agent pays for that office, and nobody ever comes into that office,” he says. “You’re seeing those kinds of major brands move to flexible spaces. It simply makes more sense.”

QUESTION 5

Can consumers still afford you?

If there really is a major economic crash, consumers will change their spending habits. They’ll buy less and become more price-sensitive. Potential franchisees should be anticipating this, which is why they need to be asking: What do these products or services cost, and will people continue to be able to pay for them?

At Floyd’s 99 Barbershop, that question is baked into the brand’s sales pitch. “Not many clients will trade down and go to the value-type hair cutters, but we will see them trade down from a high-end salon to Floyd’s,” Zemla says. “And once they give us a shot, a high percentage stay with us. That’s what we saw in 2008 and 2009 too. It helps our brand flourish.”

Similarly, Hummel says the average per-person check at a Twin Peaks restaurant is $21, an amount that most people can still muster when times get tough—especially if they feel

like they’re getting good value for that money.

“People don’t feel like they’re dining down,” he says. “You can get a hand-cut New York steak or a cheeseburger and feel like you had a really great experience on both ends.”

So, what next?

what next?

Nothing is guaranteed, of course. Even the most recession-proof business models can still stumble. That’s why any franchise expert will advise you to do a ton of research, including speaking with a lawyer and existing franchisees, to make an educated decision about which brand to buy into, particularly with big, looming questions about the economy. These five questions are only the start—but they’re a good start, because they investigate a brand from multiple angles. You want to know what the brand is doing to serve consumers during hard times, but also what’s on the minds of those consumers. Because ultimately, in an economic downturn, success will rest upon this one question: How valuable is this brand in people’s lives now?

“Stability is important, but the world has changed in terms of how people have shopped and how people consume,” Malmuth says. “There is still trepidation in certain areas. Making sure you’re getting into an essential industry is incredibly important.”

Kim Kavin is a regular contributor to Entrepreneur.

NO DRAMA WITH MOMMA

How to run a successful franchise with loved ones. by JON MARCUS

(OR ANYONE ELSE )

Illustration Zohar Lazar

C onsidering

that United Franchise Group (UFG) started with a business that creates signs, it makes sense that the walls of its sprawling West Palm Beach headquarters are covered with—you guessed it—a whole lot of signs.

Among the most prominent, front and center in the lobby, there’s one sign that announces the company’s core value: “Like a family.”

But UFG, whose affiliated brands include more than 1,600 franchises in more than 60 countries, isn’t just like a family. It’s a multigeneration, family-run business, with several family members on the payroll. That includes Ray Titus—who founded Signarama with his father in 1986—and Titus’ three sons, plus assorted nephews.

In nearly 37 years of running the company, they’ve learned a lot about what it takes to keep the wheels of a family-run franchise business turning smoothly. “The franchise model is very attractive to families,” says Ray Titus. “There are systems in place, processes in place, roles defined…and we understand those dynamics.”

But even if your franchise isn’t family-owned, insights on how to successfully navigate the interpersonal, intergenerational dynamics of a family-run franchise can still be very instructive. For any business owner, it’s often difficult to find the dividing line between personal and professional relationships. And franchising relies on personal relationships to an unusual degree. This is in part because

the cost of entry for many non-food franchises is low enough that franchisees can afford it with modest investments—often from friends or family members. During the startup phase, spouses, children, and friends can help out, and they care more about the business’s success than random hires would.

“You’ve got a trust factor involved,” says Ed Teixeira, a franchising consultant and coauthor of the new book Franchising Strategies: The Entrepreneur’s Guide to Success. That trust is also what makes the prospect of business with loved ones so potentially messy. In 2021, there were more than 32 million family-owned businesses in the United States, generating 54% of the

nation’s private sector gross domestic product, according to the advocacy group Family Enterprise USA. Yet, according to the most recent available figures, fewer than half make it to a second generation, and 3% to a fourth generation. When you go into business with people you’ve known for many years—if not your whole life—you want some guarantee that the inevitable stressors and demands of running a business won’t hurt those relationships. So how do you draw clear boundaries between work and life, and construct professional hierarchies that might be different from the ones in your personal life? How do you learn to have tough conversations in the office that might feel impossible in your everyday life? How do you use

your business to help people you care about, while making the best choices for your company? How do you keep it personal without taking the setbacks too personally? These questions are relevant to any franchisor or franchisee who has ever involved loved ones in his or her business. And they’re questions that people running family-owned franchises are particularly equipped to answer. So we spoke to a number of them, and gleaned four standout suggestions on how to succeed while running a franchise with friends or relatives.

1 Before you do anything, think it through. Seriously. Everyone loves a good drama, so when you talk about family businesses, the first thing that may come to mind is the

bitter, lasting family feud. Certainly, these spiraling scenarios are the guilty pleasures of popular entertainment (Dynasty, Succession). And it’s true that the founders of some of today’s most successful franchises had well-known and destructive disputes at formative moments in their brand history. In 1955, Dunkin’ Donuts founder Bill Rosenberg split with his brother-in-law partner—who went on to start the rival Mister Donut chain. In his book, Around the Corner to Around the World: A Dozen Lessons I Learned Running Dunkin’ Donuts, Rosenberg’s son, Bob, recalls that the feud between his dad and uncle got so bad they once came to blows. But he also notes that even when there’s no explosive conflict and all family members are aligned on a plan, power transitions can be tricky. Rosenberg’s father made him CEO of what would become Dunkin’ Donuts when he was 25, but he says some family business founders never really step aside. “It’s delicate. It’s hard,” he says. “Emotions get in the way.”

It’s not just parent-child angst that comes up; siblings can also have their share of conflict. In the case of one company shared by a franchise attorney on the condition that it not be named, two brothers started a franchise, but the older decided to sell the business. The younger brother resented this so much that the two stopped talking. A brother and sister ended up in court when she became a franchisee of a fast-food concept he’d started, didn’t make as much money as she’d hoped, and demanded her investment back.

These kinds of problems can slow growth, force sales of, or even kill off franchise companies—while pitting families against each other

in bruising legal and financial battles that leave permanent scars.

Lauri Union, the executive director of the Bertarelli Institute for Family Entrepreneurship at Babson College, says there are things you can do from the start to avoid this kind of “crack-up.”

She tells any family—or group of people with valued personal relationships—who is interested in going into business together that one of the most important things they can do is begin their journey with deep self-reflection.

“We advise people to take the time to try to understand themselves and what’s important to them,” she says. “Not that everyone’s goals are going to necessarily be maximized, but what do they collectively want and care about?”

That’s exactly what cousins Jim Tselikis and Sabin Lomac did when they cofounded the franchise Cousins Maine Lobster in 2012. Tselikis’ sister is in charge of marketing and franchise sales, and their father handles the accounting. Tselikis says he knew there would be some crossover from their roles outside of work, but he was okay with that. “Let me go on record: My father will always be in charge,” Tselikis says. “He’s the dad.” Still, when starting out, the family members went to great lengths to make sure they were seeing each other clearly in a professional capacity. Together, they took an assessment test, the Leadership Effectiveness Analysis from Management Research Group. “It measures who you are and when you’re going to butt heads,” Tselikis says. The review disclosed that he may be slower than Lomac to give up on business moves that weren’t panning out, for example. That was very useful information because, “We didn’t want to get into any issues that would affect our families,” Tselikis says.

“We advise people to take the time to try to understand themselves and what’s important to them,” says Lauri Union.

“We advise to take the time to try to understand themselves and what’s to them,” says Lauri Union.

“Not that everyone’s goals are going to necessarily be maximized, but what do they collectively want and care about?”

“Not that are going to be but what do want care

2 Don’t let personal assumptions affect business relationships. It’s common in families, or among friends who have known each other a long time, for people to be labeled or pigeonholed as being a certain way. But when you start a business together, you’re operating in a completely different context, and you have to be committed to seeing each other and your skills objectively.

For situations in which founders might have strong preconceived, personal notions about the person they’re cofounding with, or hiring, a number of experts suggested using assessment tests. When Paige and Oscar Jarquin decided to open a Pillar to Post Home Inspectors franchise with their son Justin, they all took the CliftonStrengths assessment test to help decide their roles. “You think you know your kid and your kid thinks they know you,” says Paige, a former real estate agent. But the test showed that, “in our case, each of us brought different strengths.” That helped them to divide up their responsibilities in ways they might not have otherwise. Her son, who had worked in the oil industry, for instance, turned out to be better at sales than she was.

Bringing in this kind of assessment is useful for ensuring that all parties are evaluated and given responsibility

fairly—far removed from that embarrassing thing they did in the seventh grade.

“One of the things we talk to families about is the human impulse of how, when we have an idea, we immediately get our backs up. We get defensive,” Union says. “It’s worse in a family context, because you have all this baggage from your whole life that you’re going to be reactive about.”

A.J. Titus, president of Starpoint Brands and Signarama, admits this kind of thing has come up in his family business. “In my mind, I can’t look at Austin or Andrew as my younger brothers,” he says of his siblings. “I’m seeing the little shits I beat up when we were kids. But Austin is a brand president and Andrew is an executive vice president, and I need to treat them that way.”

Scott Groeneweg and his brother, son, and three nephews run the Pizza Ranch franchise company and several of its 211 locations. He says he used to feel this acutely when working with his brother, who is 10 years older. “I won’t lie; there have been challenges. I remember in my younger years sitting down with him and doing the reviews as he gave me direction. Personally, there were times I didn’t take that too well.” That’s changed, he says. “I understand that he’s not

just my older brother, but he’s the founder, he’s the president. I understand our roles.”

But now that their sons are also involved in the business, the Groeneweg brothers have made an organizational decision to avoid the next generation being forced to navigate that kind of power imbalance: putting them under the supervision of someone else. “It’s smart to have somebody overseeing them who’s maybe not their fathers,” Groeneweg says.

Putting thought into who reports to whom can also have the important effect of assuaging nonfamily employees’ concerns about nepotism. Everyone’s heard of the aunt who’s worked at the family business for 30 years even though no one is really sure what she does, and it’s always tough to take a promotion seriously when it’s given by someone’s dad. If your business is big enough, it’s best to have family members report to people they aren’t related to.

3 Agree on a clear process for communication.

The most important way to navigate all of this, franchisees and franchisors agree, is to establish a process for communication—though what that looks like runs the gamut. Craig Aronoff, cofounder of The Family Business Consulting Group and part of an industry of advisors who serve as sort of marriage counselors for family-owned companies, says, “We say if you’ve seen one family business, you’ve seen one family business.”

At one end of that spectrum is the Paul Davis restoration franchise in Grand Rapids, Michigan— run by Jason Kitchen, his brother-in-law, and his nephew. They’ve created an executive committee to

make decisions that affect the areas of the operation that overlap their roles. One example might be if Kitchen, who is in charge of sales and marketing, wants to spend more money on advertising.

For the Tituses, at UFG, those dialogues happen during regularly scheduled business meetings for family members only. Running a franchise company with family “takes constant conversation about a whole range of things, from financial planning to potential acquisitions,” says A.J. Titus, oldest of Ray Titus’ three sons. “Most of it is succession, and what our roles look like.”

At the less formal end of the spectrum, there’s Toya Evans and her daughters, Lauren Williamson and Chanel Grant, who together operate franchises in the Washington, D.C., metro area of Tropical Smoothie Cafe and Hand & Stone Massage and Facial Spa. They make decisions largely over threeway calls and texts, plus weekly meetings and quarterly strategic sessions. Evans, who was formerly a corporate executive, says, “I think about my corporate roles and I don’t recall having communication procedures written down. I’d hate to see our personal relationships so formal.”

But sometimes, if communication breaks down, a formal method is exactly what’s needed.

4 Bring in outside perspectives.

While it’s important to build communication among family members, it’s also hard to overstate the importance of an outsider’s perspective— both in moments of conflict and in everyday business operations. Otherwise, it’s easy to get stuck in an emotional feedback loop.

A common recourse in

“I can’t look at Austin or Andrew as my younger brothers,” A.J. Titus says. “I’m seeing the little shits I beat up when we were kids. But Austin is a brand president and Andrew is an executive vice president, and I need to treat them that way.” can’t look at Austin or Andrew as my younger brothers,” A.J. Titus says. “I’m seeing the little shits I beat up when we were is a brand and Andrew is an executive vice and I need to treat them that

these situations is to bring in mediators. “In many cases, we are called in to facilitate the discussion—to say things to the kids that the parents really want to say and say things to the parents that the kids really want to say,” says Aronoff, the family business consultant.

Alicia Miller, managing director of the franchise consulting firm Catalyst Insight Group, says it’s better to do this sooner than later, when the outsider you have to bring in is legal counsel. “Things surface that are rooted in playground tiffs from decades ago,” says Miller. “I’ve seen brothers and sisters sue each other, and it takes an intermediary or a lawyer to get it sorted out.”

One way to safeguard against these kinds of conflicts is to incorporate newcomers long before it comes down to two relatives facing off. For any growing business, it’s important to know when to outsource talent. “People get into business with family because they think it’s not going to be a corporate experience, and then they realize, ‘I’m running a business,’” Miller says. “Having your cousin be the bookkeeper was a good idea to start with, but when you get to 200 units you need a chief financial officer.”

Fortunately, in this kind of business, there are also franchisees weighing in, and

they tend to be hyperaware of such deficiencies. “They know exactly who is supportive in their job,” says Miller. “And it can be toxic when you’ve got a key role going to a family member and they’re not getting the job done. That’s where franchising is uniquely effective. Now it’s not just you against your dad. You have all these franchisees, and if you stop recruiting new ones because you’re starting to calcify, the market has spoken.”

Back in the conference room at UFG’s headquarters, the Titus brothers agree that while going into business with family is not a decision to be taken lightly, it can have invaluable payoffs. “Working with family can either be really toxic, or the best thing ever,” says A.J. Titus. His brother Andrew gestures around the table. “There’s way, way more upsides. It’s spending time with these guys and our cousins and my sisters-in-law. We work together really well. We know each other’s hot buttons, strong points.” Later, on the phone, their dad adds what it all comes down to for him: “You can trust them. They’re loyal. They work harder. And they’re more experienced,” he says. “Who wouldn’t want harder workers with more experience, who care more?”

Jon Marcus writes for The Washington Post, The New York Times, The Boston Globe, and other publications.

EXTRA HOT WHERE BUSINESS IS

Want to join a fast-growing industry? Here’s why there’s a boom in breakfast, fitness, recreation, and staffing. by KIM KAVIN

Ordering eggs, working on your biceps, visiting theme parks, and finding a new job. What do these areas of life have in common?

Here’s the answer: They’re all features of thriving franchise categories, and they’re growing for the same reason. Business is excellent in the breakfast, fitness, recreation, and staffing/recruiting businesses. Each provides a form of stability—for consumers and franchisees alike!—during turbulent and unpredictable times.

Consider this: When someone grabs coffee on the way to work, improves their physical condition, plays with their kids, and seeks better employment, they are in the process of creat-

ing a happier, healthier overall existence.

But this isn’t just anecdotal. Entrepreneur knows these categories are thriving and has the data to prove it. Every December, we publish a list of 10 areas in franchising where, based on an analysis of industry trends and year-over-year growth, we expect to see continued success in the year ahead. This time, breakfast, fitness, recreation, and staffing/recruiting were among those we identified, as they appeared to be thriving in spite of—or, in some cases, because of—challenging economic conditions.

So where do the greatest opportunities lie, and what exactly is driving each of these four categories to grow? We investigated what’s happening, and the answers are on the following pages.

Why BREAKFAST Is Such a Hot Category

Joe Thornton, president of Scooter’s Coffee, admits that sometimes, you’re just in the right place at the right time.

“There’s probably not many businesses that can say they’re recession-proof or pandemicproof, but we’ve certainly showed signs of being both those things,” he says.

Consumer behaviors shifted dramatically during the pandemic for lunch and dinner—and are continuing to shift for those typically more expensive meals amid inflation. But a lot of people have kept their breakfast habits. They’re hitting a drive-thru for coffee and a to-go meal. They can’t imagine starting their day without their usual order.

That continuous consumer demand is driving brands like Scooter’s Coffee into tremen-

dous growth.

“We ended 2022 with 556 locations. We’ll be approaching 1,000 stores at the end of 2023 into early 2024,” Thornton says. “This is a business where people come to you almost every single day. Coffee is a habit. We believe that this daily connection, the speed—it breeds loyalty.”

Mark Siebert, founder of iFranchise Group, says the breakfast model can be particularly appealing to franchisees. To start, breakfast is easier to staff amid labor shortages; that’s because these restaurants close after lunchtime, instead of serving food all day (and therefore requiring more people). Also, franchisees aren’t stuck at the store late into the night.

“They can be home in time to see their kid’s baseball game and have dinner at the family

A Franchisee Says…

table,” Siebert says.

Ricky Richardson, CEO of Eggs Up Grill—which saw samestore sales climb 18% in 2022 versus 2021—says breakfast can also be a more sustainable habit for consumers in tough economic times. They may give up fancy dinners or drinks at the bar, but they’ll still take the family out for Sunday brunch.

“We have about a $12.50 check on a per-person basis,” Richardson says. “That gives us a breadth of appeal if things slow down in the economy.”

Ken Bates, who opened the first Eggs Up Grill franchise in Tennessee in March 2022, and who signed a deal for four more in the area, says he intentionally chose the breakfast category when returning to franchising after selling 24 Little Caesars in four states.

“It’s a growing segment, and the limited hours of operation make a lot more sense at this point in my career,” Bates says. “It’s another way for families to get together or coworkers to get together without the pressure or expense of a dinner.”

hotel franchises, but pivoted during the pandemic. He and his partners bought 40 Scooter’s Coffee territories in Wisconsin, and opened their first in October 2021. By late 2023, they expect at least 20 to be open.

Why did you choose a breakfast franchise? We looked at home health care, all kinds of things. Completely coincidentally, my daughter was a barista at Scooter’s, and she would tell me about her day. I could see that the 16-to-35 demographic loved being in the coffee business. Coming from the hotel space, often people don’t want to clean rooms or work in hotels. The enthusiasm of people wanting to work in the business was exciting to me.

How are your locations doing so far? They’re performing just as Scooter’s suggested they would.

What’s your strategy for so many openings? We’re building up the people part of our team ahead of our store openings. That’s the key in this labor market.

A Franchisee Says…

Why the FITNESS Category Is So Strong

Fitness franchises got shellacked during the pandemic. Many locations didn’t survive. But for those that did, they saw opportunity: Consumers took a hard look at their own level of fitness, and many decided to get healthier. “That’s something the fitness industry has really taken to heart,” says Matt Haller, president and CEO of the International Franchise Association. “They spent a lot of money promoting that mindset. You see it in a lot of the advertising.”

Once gym doors were able to open again, their business started exploding—and it has yet to stop. “It has created a world where the average fitness franchise has a great

return on their business,” says Christopher Pena, cofounder and president of Body20, which offers technology-based personal training.

And those returns are growing as we get further from the worst days of the pandemic. In April and May 2021, for example, Body20’s two grand openings brought in about $47,000 and $48,000, Pena says. By September 2021, that figure for a grand opening had jumped to more than $65,000. As of November 2021, it was around $103,000.

But this isn’t just a matter of demand, Pena says. It’s also about sound business practices—which, ironically, the pandemic also helped to promote. Body20 is a great example of that. When the pandemic shutdowns closed all its locations, the Body20 corporate team

stepped back to reevaluate how its locations operate. They reworked systems to place a stronger emphasis on back-of-the-house task management. That helps franchisees focus on the two key drivers of success in their business: membership acquisition and retention.

For instance, a Body20 franchisee used to need four to six hours every two weeks to do payroll, including calling all the employees and figuring out scheduling. Now that time commitment for a franchisee can be down to 15 minutes every two weeks.

“We brought in a bunch of software pieces and connected them, so the manager sets the schedule, the employee checks in and out on their phone, the hours automatically roll into our provider, and all you have to do every two weeks is log in and say those hours are correct,” Pena says. “When you have to get creative in hard times, it doesn’t mean those things don’t also work in good times.”

converted to a franchisee in 2016. As of October 2022, she had 22 locations in Florida, Texas, and North Carolina.

What makes Stretch Zone different?

Their table is patented with a stabilization system. It’s like having another set of hands.

Are the services for athletes?

This is for everybody. I had always been an athlete, so I understood stretching. You tweak a muscle, and the coach is on the sideline stretching it. Jorden said, “Athletes have all these specialists and equipment. Think about all the people in the stands. That’s your target market.”

How will you achieve more growth?

I try to buy a whole market instead of just opening one store. I can share economies of scale with human resources, marketing—I can buy a radio ad and spread it across five stores instead of one.

“I always wanted to run my own business, but needed to find the right partner. I could get behind the Archadeck brand and work with the resources they have to achieve my goals.”

RUSSEL HENDERSON - Empowered Since 2014

WHY ARCHADECK

• 40+ Years designing & building outdoor living spaces

• 79 Locations

• 140,000+ Clients since its founding

• Over $1 Billion in completed projects

• $2,108,597 Average annual sales per location

• $43,660 Average project sale price

• 38.6% Average gross profit margin

• Comprehensive training, project methodology and support

WHY YOU

• Low overhead and minimal staffing needs

• Flexible home-based business model

• Normal business hours

• No construction experience necessary

WHY NOW

• $485 Billion market size

• High market differentiation

• Strong demand for home improvement

Why the RECREATION Category Is So Fun

People always want entertainment. If they have less money to spend, they’ll just seek out entertainment closer to home.

That reality has driven a boom in recreation franchises, as the pandemic (and then an uncertain economy) continues to affect recreational travel.

“People are doing staycations or ‘daycations’ in local markets where they can have a lot of fun,” says Jay Thomas, who spent 30 years as an executive with Six Flags before joining Urban Air Adventure Park, where he’s now brand president and CEO and has perfectly positioned the company for staycation times.

And what happens after staycation times? No problem, Thomas says: As more people discover the parks, they’ll real-

ize that they are great for family events no matter what’s happening in the world. “Parents will figure out how to have great birthday parties for their kids,” Thomas says. “They’re not going to miss out on the opportunities to share those memories.”

In addition to having a measure of economic resilience, the recreation segment also has long-term interest from consumers, says Mark Siebert, founder of iFranchise Group. That’s fueling a lot of innovation in the space and broadening the experiences that franchisees can offer.

“Initially, we saw things like trampoline parks,” Siebert says. “Now it’s things like pickleball parks that are popping up to target folks who wouldn’t be very good on a trampoline.”

To his point, franchise brands in the recreation space are now as wide-ranging as The Foam

Garage, which promises a foamfilled party experience; Dart Wars, which is an indoor Nerf battle arena; iSmash, which has rooms filled with things people can smash and splatter; Freedom Boat Club, which lets members use fleet boats instead of buying them; and Board & Brush Creative Studio, which provides DIY wood sign workshops.

Many of these businesses appeal to consumers with children, which is a key point when talking about brand resilience in uncertain economic times, says Matt Haller, president and CEO of the International Franchise Association.

“These are ways for kids to occupy themselves beyond traditional after-school activities,” Haller says. “When people start making trade-offs, they don’t necessarily want to make trade-offs that affect the development of their children. These things are about enrichment and development. They’ll trade down when they go out to eat, maybe go to a less expensive place, but they’ll still pay the monthly fee for their kids.”

A Franchisee Says…

ABBY HUSSEY and her husband, Scott, owned a preschool franchise for a decade before they sold it and opened an Urban Air in 2019. In late 2020, they opened a second Colorado location, and in early 2021, they bought an existing Urban Air nearby. They also have a fourth territory near Denver.

Why did you double down on Urban Air during the pandemic? When COVID hit and we were restricted even more, our kids had their physical play and ability to connect with friends restricted even more. Because they couldn’t celebrate their birthdays and special events, it became even more of a burning desire among families to do what our tagline is: Let ’em fly.

And now with family budgets stretched, what is your local strategy?

Our parks are in areas where families can join. They can say, “There’s always something going on at Urban Air. What’s new this month?”

Two Franchisees Say…

EBONY WALKER had 22 years of human resources experience. FRITZ VALSAINT came from procurement and consulting. The two longtime friends partnered to open a Spherion Staffing & Recruiting franchise in South Atlanta in September 2022.

How did you land in franchising?

VALSAINT: We went to SCORE, a network of business mentors, and said, “We need somebody who has been there, done that, and can give us some pointers.”

WALKER: We found somebody with 30-plus years of experience. He advised us to look into franchising.

Why did you choose South Atlanta as your location?

WALKER: To serve local communities. Some people think blue-collar employees are lower educated or only have certain skills, but we want to change that perception. We don’t want companies to see these people as just forklift drivers or packers. We want them to envision that packer becoming an operations manager or a general manager.

A Business for Any Budget

Want to buy a business? We rank the top ones that cost less than $50,000, less than

by TRACY STAPP HEROLD

Tand

$150,000.

hink owning a franchise is out of your reach financially? You might be surprised to learn just how affordable many franchise opportunities can be. Sure, there are franchises that cost millions to open, but there are also some that can be started for just a few thousand dollars—and, of course, everything in between. So if you’re interested in being your own boss, even on a budget, you have plenty of options to choose from, in industries as varied as children’s enrichment programs, real estate, home improvement, health services, and more. And you can start your search right here, with our list of the top franchises that can be started for less than $50,000, less than $100,000, and less than $150,000.

The companies on these three lists are ranked based on the scores they received in Entrepreneur’s 2023 Franchise 500 ranking, which analyzes each brand on more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. A franchise’s placement within a particular cost tier (e.g. less than $50,000) means that it is reasonably possible for some franchisees to start the business for that amount—but it does not mean that it will be possible for all franchisees. We list the full initial investment (startup cost) range for each company so you can get the full picture of how much you might need to spend to get the business started. And keep in mind that that’s not the only factor you should consider when looking at franchise opportunities. Finding the right franchise for your circumstances requires careful research, including reading the company’s legal documents, consulting with an attorney and an accountant, and talking to current and former franchisees about their experiences with the brand.

4

TOP 100 Franchises for LESS THAN $ 50,000

13

Brightway Insurance

Property and casualty insurance

STARTUP COST

$23.1K-$173.5K

TOTAL UNITS

/ CO.-OWNED) 749/0

8

$2.3K-$23.5K

9

Skyhawks Sports & Supertots Sports Academy Children’s fitness programs STARTUP COST

$30.3K-$89.8K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 157/74

10

Corvus Janitorial Systems

Commercial cleaning STARTUP COST

$9.6K-$34.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 1,727/0

11

5

Leadership Management International Leadership and organizational training and development STARTUP COST

$20K-$27.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 483/0

12 NextHome

Real estate

STARTUP COST

$16.3K-$220.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 578/0

(FRANCHISED / CO.-OWNED) 306/2

14

American Poolplayers Association Recreational billiard leagues STARTUP COST

$22.9K-$29.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 332/6

15

H&R Block

Tax preparation, electronic filing STARTUP COST

$31.6K-$157.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 3,270/6,665

16

Estrella Insurance Auto, home, and business insurance STARTUP COST

$12.3K-$84K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 180/0

17

WIN Home Inspection Home inspections STARTUP COST

$35.9K-$41.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 270/0

18

1st Class Real Estate Real estate

STARTUP COST

$32.7K-$208.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 81/1

$44.3K-$54.4K TOTAL UNITS (FRANCHISED / CO.-OWNED) 558/0

/

/

LISTINGS

DREAM VACATIONS

No. 4 franchise for less than $50K

25 TSS Photography Youth sports, school, and event photography

STARTUP COST

$20.4K-$74.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 173/0

26 ShelfGenie

Custom pullout shelving for cabinets and pantries

STARTUP COST

$42.4K-$135.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 244/12

27 National Property Inspections Home and commercial property inspections

STARTUP COST

$40.6K-$49.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 223/0

28 Unishippers Parcel and freight shipping services

STARTUP COST

$44.6K-$233.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 209/69

29

Destination Athlete Equipment, apparel, fundraising, and performance solutions for youth, high school, and college athletic teams

STARTUP COST

$28.3K-$93.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 207/0

30 Champs Chicken Fried chicken, seafood, sides

STARTUP COST

$9K-$349K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 424/0

TOP 100 Franchises for LESS THAN $ 50,000

31

Colors On Parade Mobile automotive paint and dent repair

STARTUP COST

$21.5K-$97.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 216/4

32 Chester’s Chicken

STARTUP COST

$15.95K-$288.1K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 1,098/0

33

Sculpture Hospitality Bar and restaurant management solutions

STARTUP COST

$42.5K-$76.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 275/11

Commercial scent marketing and odor

Sit Means Sit Dog Training

In-home meal preparation service for seniors

STARTUP COST

$12.6K-$29.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 77/1

39 Toro Taxes Tax and accounting services

STARTUP COST

$17.8K-$74.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 165/30

40

DPF Alternatives

Diesel particulate filter cleaning and after-treatment system restoration

STARTUP COST

$44K-$199K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 56/0

LISTINGS

ABRAKADOODLE

No. 54 franchise for less than $50K

$44.3K-$130.9K

46

$43.8K-$70.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 250/0

47

Network In Action Professional networking and referral groups

STARTUP COST

$25.7K-$32.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 77/3

48

Christmas Decor

Holiday, event, landscape, and permanent architectural lighting STARTUP COST

$19.6K-$62.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 259/0

49

Martinizing Dry-cleaning and laundry services

STARTUP COST

$40.1K-$1.3M

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 312/0

50

Soccer Shots

Soccer programs for ages 2 to 8

STARTUP COST

$43K-$55.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 257/12

51

Discovery Map

Visitor-information maps and digital guides

STARTUP COST

$35.95K-$45.95K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 120/0

52

OpenWorks Commercial cleaning and facility management services

STARTUP COST

$24.9K-$124.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 644/0

53

G-Force Parking Lot Striping Pavement marking services

STARTUP COST

$29.8K-$107K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 36/0

54

Abrakadoodle

Art-education programs for children

STARTUP COST

$38.1K-$81.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 483/2

55

Club Z! In-Home Tutoring Services In-home tutoring

STARTUP COST

$33.5K-$57.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 371/0

56

Kitchen Refresh Kitchen and bathroom cabinet remodeling and countertop installation

STARTUP COST

$13.3K-$160.9K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 18/0

57 Send Me a Pro In-home personal training

STARTUP COST

$44.4K-$64.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 57/0

58

Foliage Design Systems

Interior plant sales, leasing, and maintenance; green walls; commercial holiday decor

STARTUP COST

$44.4K-$64.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 20/3

59

Wize Computing Academy Coding, robotics, and design classes, camps, and competition prep

STARTUP COST

$38K-$67K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 13/2

60

Blue Moon Estate Sales Estate sales

STARTUP COST

$40.6K-$85.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 63/0

61

Assist-2-Sell

Discount real estate

STARTUP COST

$12.5K-$33.99K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 126/1

62

Rhea Lana’s Children’s consignment events

STARTUP COST

$20.6K-$39.95K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 103/2

63 The Grout Doctor Grout, tile, and stone cleaning, restoration, and maintenance

STARTUP COST

$23.6K-$37.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 82/2

64

Surface Specialists

Bathtub repair and refinishing, tub liners, bath remodeling

STARTUP COST

$43.2K-$56K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 46/0

65

Coffee News

Weekly publication distributed at restaurants and waiting areas

STARTUP COST

$11.2K-$12.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 533/3

66

Kinderdance

Children’s dance, gymnastics, movement, fitness, and yoga programs

STARTUP COST

$18.2K-$47.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 228/3

67

Mr. Sandless

Interior and exterior sandless wood refinishing

STARTUP COST

$33.8K-$83.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 183/9

68 3% Realty

Real estate

STARTUP COST

$47.2K-$79.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 55/3

69

IntegriServ Cleaning Systems

Commercial cleaning

STARTUP COST

$3.1K-$50K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 108/0

70

Executive Image Building Services

Commercial cleaning and building maintenance

STARTUP COST

$39.1K-$83K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 51/1

71

Fun 4 US Kids

Family calendar/directory websites for local communities

STARTUP COST

$8.3K-$46.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 13/7

72

AeroWest

Odor control, hygiene, and scent marketing

STARTUP COST

$35.2K-$81.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 24/18

73

STEM For Kids

Biomed, coding, engineering programs for ages 4 to 14

STARTUP COST

$49.5K-$83.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 130/5

74

Acti-Kare

Nonmedical home care

STARTUP COST

$32.5K-$57.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 145/0

75

Spoiled Rotten Photography On-site preschool photography

STARTUP COST

$33.5K-$48.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 15/2

76

Just Between Friends

Children’s and maternity consignment sale events

STARTUP COST

$42.6K-$56.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 153/5

77

United Country Real Estate

Real estate

STARTUP COST

$10.5K-$51.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 429/1

78

Grand Welcome Vacation rental property management STARTUP COST

$37.9K-$167.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 20/5

79

DivaDance

Dance classes and parties for adults STARTUP COST

$42.3K-$65.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 23/4

80

FranNet

Franchise consulting STARTUP COST

$23.8K-$42.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 51/0

81

Hi-Five Sports

Youth sports programs and facilities

STARTUP COST

$25.5K-$554.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 16/2

82

Town Money Saver Direct-mail and digital advertising

STARTUP COST

$15.7K-$27K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 38/1

83

CarePatrol Senior living placement, referral, and consulting

STARTUP COST

$43.6K-$103.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 141/0

84

Amazing Athletes Educational sports programs

STARTUP COST

$32.8K-$65.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 124/22

85

Little Kickers Preschool soccer programs

STARTUP COST

$25.2K-$37.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 339/2

86

Iris Environmental Laboratories Mold and asbestos inspections

STARTUP COST

$31.3K-$62.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 6/4

87

Best Brains Learning Centers Learning centers

STARTUP COST

$16.5K-$80.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 131/3

88

N Zone Sports Sports leagues and preschool programs for ages 3 to 16

STARTUP COST

$41.1K-$58.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 53/0

LISTINGS

89

Network Lead Exchange Business referral networks

STARTUP COST

$12.5K-$25.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 38/0

90

Lil’ Angels Photography

Preschool, childcare, and family photography

STARTUP COST

$41.3K-$45.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 40/2

91

$36.7K-$237.9K TOTAL UNITS

(FRANCHISED / CO.-OWNED) 42/28

92 Go Oil

Mobile oil-change services

STARTUP COST

$23.1K-$56.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 31/3

93

Grasons Co Estate Sales & Business Liquidation Services

Estate sales, business liquidations, online auctions

STARTUP COST

$48.9K-$79.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 31/0

94 Moms on the Run Fitness programs for women

STARTUP COST

$8.1K-$15.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 37/12

95

Computer Troubleshooters Technology consulting and services for small businesses

STARTUP COST

$29.5K-$45K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 208/1

96

Oxi Fresh Carpet Cleaning Carpet, upholstery, hardwood floor, tile, and grout cleaning; odor control; home disinfection

STARTUP COST

$47.5K-$77.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 456/12

97

Overtime Athletics Youth sports programs STARTUP COST

$37.8K-$65.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 33/0 TOP 100 Franchises for

1 Kumon Supplemental education STARTUP COST

$67.4K-$145.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 26,486/41

2 The Maids Residential cleaning STARTUP COST

$57.5K-$155.9K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 1,429/160

3 Matco Tools Mechanics’ tools and equipment STARTUP COST

$76.8K-$309.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 1,915/4 TOP 100 Franchises for LESS THAN $ 50,000

4

HomeVestors of America

Home buying, repair, and selling STARTUP COST

$80K-$456.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 1,155/0

5 Signal

Private security guard and patrol services STARTUP COST

$93.2K-$241.2K

7

Transworld Business Advisors Business brokerages; franchise consulting STARTUP COST

$76.1K-$99.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 359/1

8 RE/MAX Real estate STARTUP COST

$43K-$236.5K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 9,120/0

*Whileitispossibletoopena RE/MAXfranchiseforlessthan $50,000,mostfranchiseeswill spendmoretoopentheirfirstunit.

377/0

98

Driverseat Consumer and commercial transportation services

STARTUP COST

$42.3K-$69.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 64/1

99

Get A Grip Resurfacing Countertop, cabinet, tub, tile, and shower resurfacing; fiberglass repair

STARTUP COST

$43.6K-$92.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 23/1

100

CompuChild Entrepreneurship and STEAM enrichment classes

STARTUP COST

$19.9K-$34.9K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 9/7

9 Merry Maids

Residential cleaning STARTUP COST

$94.5K-$144.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 996/0

10

Chem-Dry Carpet & Upholstery Cleaning Carpet, upholstery, and floor cleaning, tile and stone care, granite countertop renewal

STARTUP COST

$69.1K-$204.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 2,597/0

11

Mr. Rooter

Plumbing, drain, and sewer cleaning STARTUP COST

$80.6K-$191.1K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 242/3

12

Mr. Appliance

Residential and commercial appliance installation and repairs STARTUP COST

$80.9K-$158.6K

14

$92.9K-$128.3K

/ CO.-OWNED) 317/0

15 Property Management Inc. Commercial, residential, association, and short-term rental property management

$58.2K-$225.1K

/ CO.-OWNED) 378/2

$76.3K-$169.3K

/

$94.6K-$119.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 265/0

19

Weed Man Lawn care

STARTUP COST

$69.5K-$86.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 287/45

20

Fibrenew

Leather, plastic, and vinyl restoration and repair

STARTUP COST

$97.8K-$111.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 302/0

21

ASP-America’s Swimming Pool Company

Swimming pool maintenance, repairs, and renovations

STARTUP COST

$84.7K-$206.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 345/0

22

ServiceMaster Clean

Commercial cleaning STARTUP COST

$86.3K-$121.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 712/0

23

Aire Serv HVAC services

STARTUP COST

$87.6K-$216.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 231/0

24

Homewatch CareGivers Home care services

STARTUP COST

$91.8K-$177.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 221/0

25

HouseMaster Home Inspections

Home inspections and related services

STARTUP COST

$61.1K-$107.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 311/0

26

Sylvan Learning

Supplemental education, STEM camps, college prep

STARTUP COST

$85.5K-$186.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 556/6

27

Assisting Hands Home Care

Home health care, respite care

STARTUP COST

$87.7K-$159.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 171/5

28

SafeSplash/SwimLabs/ Swimtastic

Child and adult swimming lessons, parties, summer camps

STARTUP COST

$47.5K-$2.1M*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 176/16

*SafeSplash/SwimLabs/Swimtastic’s initialinvestmentrangeisincreasingin 2023andwillbeabove$50,000.

29

HomeTeam Inspection Service

Home and commercial property inspections and related services

STARTUP COST

$50.1K-$76.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 206/0

30

Expense Reduction Analysts (ERA)

Business financial consulting

STARTUP COST

$66K-$85.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 710/0

31

Right at Home

Home care, medical staffing

STARTUP COST

$87.4K-$156.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 665/24

Five Star Painting Residential and commercial painting STARTUP COST

$76.2K-$184.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 246/0 33

Griswold Home Care Nonmedical home care STARTUP COST

$95.9K-$174.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 167/15 34

Hommati

3D tours, aerial videos, photography, augmented reality, and other services for real estate agents

STARTUP COST

$61.7K-$84.2K TOTAL UNITS (FRANCHISED / CO.-OWNED) 144/0

35

Your CBD Store CBD stores STARTUP COST

$69.8K-$90.3K TOTAL UNITS (FRANCHISED / CO.-OWNED) 275/0 36

Patrice & Associates Hospitality, executive search, retail, and sales recruiting STARTUP COST

$86.1K-$88.8K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 205/0 37

Tutor

$94.3K-$138.99K TOTAL UNITS (FRANCHISED / CO.-OWNED) 734/0 38

Mosquito Authority Mosquito control STARTUP COST

$54K-$127.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 527/1

LISTINGS

KUMON

No. 1 franchise for less than $100k

39 Two Maids

$83.1K-$123.9K

/ CO.-OWNED) 106/1

$82.8K-$202.5K

41 P3 Cost Analysts Cost

$59.9K-$69.9K

43 Snapology STEAM education programs STARTUP COST

$73.7K-$497.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 160/3

44 Challenge Island Educational enrichment programs STARTUP COST

$50.2K-$68.9K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 179/7

45

Premier Pools & Spas

Residential pool construction STARTUP COST

$53K-$112.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 117/2

46 Made in the Shade Blinds and More Window coverings STARTUP COST

$65.9K-$74.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 134/1

47

All Dry Services Water and mold remediation and restoration STARTUP COST

$86.9K-$212K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 115/1

48

Office Pride Commercial Cleaning Services Commercial cleaning STARTUP COST

$70.9K-$117.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 151/2

49

Color Glo

Leather, vinyl, fabric, carpet, and surface repair and restoration

STARTUP COST

$56.3K-$61.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 127/0

50

Jet-Black/Yellow Dawg Striping Asphalt maintenance STARTUP COST

$62.6K-$122.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 118/8

51

Dale Carnegie Workplace training and development

STARTUP COST

$93.4K-$245.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 219/1

52

British Swim School Swimming lessons for ages 3 months and older

STARTUP COST

$93.7K-$125.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 137/0

53

Gotcha Covered Window treatments

STARTUP COST

$87.6K-$116.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 128/0

54

First Choice Business Brokers Business brokerages

STARTUP COST

$67.9K-$95.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 52/6

55

The Patch Boys Drywall repair STARTUP COST

$54.9K-$81.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 272/0

56

Social Indoor Indoor print and digital advertising services

STARTUP COST

$76.3K-$239K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 46/3

57

Amada Senior Care Home care and assisted-living placement STARTUP COST

$95.4K-$251.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 143/1

58

Home Helpers Home Care

Nonmedical/skilled home care; monitoring products and services

STARTUP COST

$96.4K-$139.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 304/0

59 ComForCare Nonmedical home care STARTUP COST

$71.5K-$154.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 222/0

60 Motto Mortgage Mortgage brokerages STARTUP COST

$62.8K-$86.8K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 205/0

61

Fitness Machine Technicians (FMT)

Exercise equipment maintenance and repairs

STARTUP COST

$81.5K-$128.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 45/1

62 Totally Nutz Cinnamon-glazed almonds, pecans, and cashews STARTUP COST

$65.4K-$216K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 55/17

63

Combo Kitchen

Ghost kitchens/food halls

STARTUP COST

$3.3K-$357.5K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 105/1

*ThelowendofComboKitchen’s initialinvestmentrangeappliesonly tofranchiseesaddingthefranchise ontoanalreadyexistingrestaurant. Franchiseesstartinganewbusiness willinvestmorethan$50,000.

64 Fiesta Auto Insurance and Tax Insurance and tax preparation services

STARTUP COST

$72.1K-$156.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 244/0

65 Caring Transitions

Senior transition and relocation, online auctions, and estate liquidation management

STARTUP COST

$58.9K-$82.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 265/0

66 Fastest Labs

Drug, alcohol, and DNA testing; background screening STARTUP COST

$91.2K-$122.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 74/1

67 Zerorez

Carpet and surface cleaning STARTUP COST

$57.6K-$201.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 68/6

68 Pestmaster

Pest and rodent control, wildlife exclusion, vegetation management STARTUP COST

$81.6K-$185.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 59/6

69 Footprints Floors

Flooring installation and restoration

STARTUP COST

$78.5K-$113K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 78/1

70

One Hour Heating & Air

Conditioning

Heating and cooling repairs, replacements, and maintenance; indoor air quality services

STARTUP COST

$91.1K-$201.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 342/33

71

Board & Brush Creative Studio DIY wood-sign workshops

STARTUP COST

$64.6K-$93.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 252/3

72 ATAX

Tax preparation, bookkeeping, payroll, and incorporation services

STARTUP COST

$62.7K-$79K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 80/3

73

Mister Sparky

Residential electrical maintenance, repair, and replacement services

STARTUP COST

$81.1K-$191.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 125/7

74

Shack Shine

Interior and exterior window washing, gutter cleaning, house washing, and Christmas light installation

STARTUP COST

$71.7K-$149.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 66/0

75

Sam the Concrete Man

Residential and commercial concrete services

STARTUP COST

$89.1K-$142.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 55/2

76

DoodyCalls

Pet waste management

STARTUP COST

$73K-$91.99K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 68/2

77

Fundraising University Fundraising

STARTUP COST

$77.9K-$84.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 63/9

78

TruBlue Total House Care

Senior home modification, maintenance, and repair services

STARTUP COST

$65.1K-$91.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 85/0

79

Mosquito Hunters Mosquito, tick, and flea control

STARTUP COST

$99.2K-$116.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 127/6

80

Eye Level Learning Centers

Supplemental education STARTUP COST

$52.3K-$121.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 567/744

81

Heaven’s Best Carpet & Upholstery Cleaning Carpet, upholstery, tile, and wood floor cleaning

STARTUP COST

$59.9K-$110.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 414/0

82

Qualicare

Medical/nonmedical home care, concierge services, and patient advocacy

STARTUP COST

$85.6K-$192.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 67/3

83

Neighborhood Barre Barre fitness classes, apparel, merchandise

STARTUP COST

$78.1K-$248K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 22/2

84

Padgett Business Services Tax, accounting, compliance, payroll, and advisory services

STARTUP COST

$20.2K-$99.98K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 265/0

*ThelowendofPadgett’sinitial investmentrangeappliesonlytothe conversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$50,000.

85

RSVP Advertising Advertising STARTUP COST

$67.6K-$324.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 57/2

86

AR Workshop DIY home decor workshops, parties, and kits; gift boutiques

STARTUP COST

$89.7K-$164.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 137/1

87

Iron Valley Real Estate Real estate

STARTUP COST

$53.5K-$138.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 27/8

88

Kitchen Solvers Kitchen and bath remodeling, design, and installation

STARTUP COST

$99.5K-$132.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 53/0

89

LISTINGS

Get Up And Go Kayaking

Guided clear kayak tours

STARTUP COST

$53.6K-$87.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 17/2

90

HomeSmart

Real estate

STARTUP COST

$65.5K-$205K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 164/53

91

i4 Search Group

Healthcare recruiting

STARTUP COST

$51.8K-$109.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 20/0

92

Benjamin Franklin Plumbing Residential and light commercial plumbing services

STARTUP COST

$91.1K-$201.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 266/10

93

InXpress Shipping services

STARTUP COST

$85.6K-$166.99K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 430/1

94

Our Town America Direct-mail marketing to new movers

STARTUP COST

$64.2K-$86.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 53/0

95

Dryer Vent Wizard Dryer vent cleaning, replacement, installation, and maintenance

STARTUP COST

$75.8K-$154.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 118/0

96

Criterium Engineers Consulting engineering firms

STARTUP COST

$68.98K-$133.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 34/1

97

A Place At Home

Nonmedical home care, care coordination, senior living placement, staffing solutions

STARTUP COST

$84.2K-$148.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 20/0

98

The Alternative Board (TAB) Business owner advisory boards, coaching, strategic planning

STARTUP COST

$55.9K-$96.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 345/18

99 Frios Gourmet Pops Frozen pops

STARTUP COST

$66.3K-$172.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 47/0

100

Cyberbacker Outsourced personal assistants

STARTUP COST

$78.1K-$94K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 42/1

TOP 100 Franchises for LESS THAN $ 150,000

1 The UPS Store Shipping, packing, mailboxes, printing, faxing, shredding, notary services

STARTUP COST

$122.2K-$508.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 5,463/1

2 7-Eleven Convenience stores

STARTUP COST

$125.3K-$1.3M

TOTAL UNITS

(FRANCHISED / CO.-OWNED)

75,992/5,895

3 Budget Blinds

Window coverings, window film, rugs, accessories

STARTUP COST

$140.5K-$211.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED)

1,378/0

4

Express Employment Professionals

Staffing, HR solutions STARTUP COST

$140K-$400K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 857/1 5 Cinnabon Cinnamon rolls, baked goods, coffee STARTUP COST

$112K-$546.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 1,805/2

6 Interim HealthCare Medical and nonmedical home care, medical staffing STARTUP COST

$125.5K-$199.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 627/4

7

Spherion Staffing & Recruiting Flexible staffing, recruiting, workforce management solutions STARTUP COST

$143.1K-$352.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 215/0

8

Cornwell Quality Tools Automotive tools and equipment STARTUP COST

$59.5K-$277.8K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 789/0

*ThelowendofCornwellQualityTools’ initialinvestmentrangeappliesonlyto theconversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

9 Mac Tools Automotive tools and equipment STARTUP COST

$120.5K-$340.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 1,131/0

10 Lawn Doctor Lawn, tree, and shrub care; mosquito and tick control STARTUP COST

$116.5K-$141.8K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 625/0

11 Mathnasium Math tutoring STARTUP COST

$112.9K-$149.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 1,105/3

12

LISTINGS

Minuteman Press Printing, graphics, and marketing services

STARTUP COST

$75.9K-$187.1K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 967/0

*ThelowendofMinutemanPress’sinitial investmentrangeappliesonlytothepurchase ofanexistingstore.Franchiseesstartinga newbusinesswillinvestmorethan$100,000.

13

Huntington Learning Center Tutoring and test prep

STARTUP COST

$148K-$263.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 277/12

14 Stanley Steemer

Carpet, upholstery, HVAC, and air duct cleaning; water damage restoration

STARTUP COST

$118.2K-$692.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 216/56

15 Pop-A-Lock

Mobile locksmith and security services

STARTUP COST

$137.8K-$170.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 616/7

16

Coldwell Banker Real Estate Real estate

STARTUP COST

$31.2K-$491.9K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 2,214/588

*ThelowendofColdwellBanker’s initialinvestmentrangeappliesonlyto theconversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

17

Century 21 Real Estate Real estate

STARTUP COST

$24.7K-$459.3K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 13,987/0

*ThelowendofCentury21’sinitial investmentrangeappliesonlytothe conversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

18

Ace Handyman Services

Residential and commercial repairs, restoration, and maintenance

STARTUP COST

$112.6K-$159.1K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 313/7

19

Signarama

Sign products and services STARTUP COST

$120.2K-$316.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 689/0

20

Two Men and a Truck Moving, storage, and junk removal services

STARTUP COST

$105.5K-$435.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 323/3

21

Kitchen Tune-Up

Residential kitchen remodeling STARTUP COST

$119.9K-$173.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 261/0

22

BrightStar Care

Medical/nonmedical home care, medical staffing STARTUP COST

$111K-$191.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 362/3

23

Molly Maid

Residential cleaning STARTUP COST

$127.2K-$184.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 488/0

24

Carvel

Ice cream, ice cream cakes STARTUP COST

$111.3K-$518.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 358/0

25

Home Instead Nonmedical senior care STARTUP COST

$103K-$130K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 1,182/5

26

Screenmobile

Mobile window and door screening STARTUP COST

$118.4K-$204.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 148/1

27

Bin There Dump That Residential-friendly dumpster rentals STARTUP COST

$86.2K-$170.4K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 227/0

*AlthoughBinThereDumpThat’sinitial investmentrangestartsat$86,200, franchiseestypicallyinvestmorethan $100,000atstartup.

28

Mosquito Joe Outdoor pest control STARTUP COST

$109.7K-$148.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 426/2

29

Mr. Electric Electrical services STARTUP COST

$107.9K-$244.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 214/0

30

Senior Helpers

Personal, companion, Parkinson’s, and Alzheimer’s home care STARTUP COST

$125.8K-$169.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 335/13

31

Window Gang Window, gutter, roof, and dryer-vent cleaning; pressure washing; chimney sweeping STARTUP COST

$102.2K-$145.7K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 158/71

32 Maid Brigade

Residential cleaning STARTUP COST

$97.7K-$114.5K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 396/20

*MaidBrigade’sinitialinvestmentrange isincreasingin2023andwillbeabove $100,000.

33

Sanford Rose Associates Executive search and recruiting STARTUP COST

$108.3K-$143.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 163/0

34

Real Property Management Property management STARTUP COST

$99.4K-$146.5K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 399/0

35

Dippin’ Dots

Specialty ice cream, frozen yogurt, ices, sorbet STARTUP COST

$112.2K-$366.95K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 235/0

36

YESCO Sign & Lighting Service Sign and lighting service and maintenance STARTUP COST

$65K-$352.2K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 60/42

*ThelowendofYESCO’sinitial investmentrangeappliesonlyto someoneaddingontoorconvertingan existingbusiness.Franchiseesstarting anewbusinesswillinvestmorethan $100,000.

37

Auntie Anne’s Soft pretzels

STARTUP COST

$146.1K-$523.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 1,918/12

38

Pro Image Sports

Licensed sports apparel and accessories

STARTUP COST

$108.9K-$580K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 150/0

39

TeamLogic IT

IT managed services for businesses

STARTUP COST

$110.9K-$142.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 252/0

40

Mr. Handyman

Residential and commercial repair, maintenance, and improvement services

STARTUP COST

$117.5K-$154.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 319/0

41

ERA Real Estate Real estate

STARTUP COST

$27.4K-$453.1K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 2,355/0

*ThelowendofERA’sinitialinvestment rangeappliesonlytotheconversionofan existingbusiness.Franchiseesstartinganew businesswillinvestmorethan$100,000.

42

Cookie Cutters Haircuts for Kids Children’s hair salons

STARTUP COST

$142K-$356.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 111/2

43 Labor Finders

Industrial staffing

STARTUP COST

$128.5K-$221.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 185/0

44

Conserva Irrigation

Irrigation repair, maintenance, installation, and efficiency upgrades

STARTUP COST

$84.8K-$110K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 171/0

*AlthoughConservaIrrigation’sinitial investmentrangestartsat$84,800,the companyadvisesthatthisonlycovers thefirst90to120daysinbusiness,and additionalfundswillbenecessaryfor fullstartup.

45

Spaulding Decon

Crime-scene, meth-lab, and hoarding cleanup; mold remediation; house buying

STARTUP COST

$95.4K-$160.95K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 51/3

*ThelowendofSpauldingDecon’sinitial investmentrangeispossibleonlywhen purchasinga“minimarket”territory, andthesearenothighlyavailable.With afull-sizeterritory,theinitialinvestment willbehigherthan$100,000.

46

Outdoor Lighting Perspectives

Residential landscape, architectural, holiday, and hospitality lighting

STARTUP COST

$85K-$154.1K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 111/0

*AlthoughOutdoorLighting Perspectives’initialinvestmentrange startsat$85,025,thecompanyadvises thatthisonlycoversthefirst90to120 daysinbusiness,andadditionalfunds willbenecessaryforfullstartup.

47

Fish Window Cleaning

Low-rise commercial and residential window cleaning STARTUP COST

$102.8K-$167.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 270/1

48

Rosati’s Pizza Pizza, Italian food STARTUP COST

$142.2K-$1.2M

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 123/1

49

The Junkluggers

Environmentally friendly junk removal STARTUP COST

$121.2K-$372.7K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 104/1

50

CMIT Solutions

Outsourced IT services STARTUP COST

$102.6K-$168.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 254/0

51 ecomaids

Environmentally friendly residential cleaning STARTUP COST

$120.99K-$136.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 81/1

52

KeyGlee Wholesale real estate STARTUP COST

$124.8K-$274.1K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 123/9

53

The Entrepreneur’s Source Franchise/business coaching and development STARTUP COST

$117.6K-$125.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 149/0

54

Weichert Real estate

STARTUP COST

$62.5K-$326.2K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 378/111

*ThelowendofWeichert’sinitial investmentrangeappliesonlytothe conversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

55

Filta Environmental Kitchen Solutions Commercial kitchen maintenance services

STARTUP COST

$123.6K-$139.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 326/0

56

FirstLight Home Care Nonmedical home care STARTUP COST

$113.3K-$198.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 189/0

57

HomeWell Care Services Home care

STARTUP COST

$96.9K-$225.8K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 106/0

*AlthoughthelowendofHomeWell’s initialinvestmentrangeis$96,900, mostfranchiseeswillinvestmorethan $100,000atstartup.

58

Shine Window Cleaning and Holiday Lighting Window cleaning, pressure washing, holiday lighting installation

STARTUP COST

$107.5K-$206.8K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 51/0

59

LISTINGS

Rytech Restoration Water, mold, fire, and smoke restoration; COVID sanitation

STARTUP COST

$135.3K-$170.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED)

87/3

60

LIME Painting

Residential and commercial painting, coatings, and surface restoration STARTUP COST

$124.7K-$162.4K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 33/2

61

Archadeck Outdoor Living Outdoor living space design and construction STARTUP COST

$61.1K-$108.6K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 80/0

*AlthoughArchadeck’sinitialinvestment rangestartsat$61,125,thecompany advisesthatthisonlycoversthefirst90 to120daysinbusiness,andadditional fundswillbenecessaryforfullstartup.

62

Precision Door Service

Residential garage door repair, installation, and service STARTUP COST

$111.4K-$590.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 110/0

63

Acai Express Superfood Bowls Acai bowls, smoothies, juices, toast STARTUP COST

$145.9K-$429K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 44/8

64

Color World Painting

Residential/commercial painting, carpentry, gutter installation, power washing, holiday lighting STARTUP COST

$106.5K-$166.8K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 56/1

65

Surface Experts

Interior hard surface repairs

STARTUP COST

$133.1K-$213.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 59/0

66

Stretch Zone

Assisted stretching STARTUP COST

$107.5K-$209.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 202/3

67

Money Pages

Multimedia marketing STARTUP COST

$107.5K-$148.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 15/16

68

The Brothers that just do Gutters Gutter service and installation STARTUP COST

$124.3K-$171.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 60/1

69

Window Genie

Residential window cleaning, window tinting, pressure washing

STARTUP COST

$109.8K-$186K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 125/0

70

Five Star Bath Solutions

Bathroom remodeling

STARTUP COST

$112.4K-$244.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 73/0

71

Fully Promoted

Branded apparel and promotional products

STARTUP COST

$128.2K-$362.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 276/0

72

Window World

Residential windows, doors, siding, roofing, and other exterior remodeling products

STARTUP COST

$123.8K-$330.1K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 212/0

73

Better Homes and Gardens Real Estate Real estate

STARTUP COST

$32.4K-$447.5K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 413/0

*ThelowendofBetterHomesandGardens’ initialinvestmentrangeappliesonlyto theconversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

74

1-800-Plumber +Air Plumbing and HVAC services STARTUP COST

$92.99K-$246.4K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 31/2

*Thelowendof1-800-Plumber+Air’s initialinvestmentrangeappliesonlyto theconversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

75

Asurion Tech Repair & Solutions Electronics repairs

STARTUP COST

$118.4K-$369.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 431/406

76

30 Minute Hit

Boxing/kickboxing circuit-training programs for women

STARTUP COST

$123.2K-$325.5K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 76/0

77

Pool Scouts

Pool cleaning and maintenance

STARTUP COST

$70.95K-$88.4K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 67/2

*PoolScouts’initialinvestmentrangeis increasingin2023andwillbeabove$100,000.

78

NaturaLawn of America

Organic-based lawn care

STARTUP COST

$57.5K-$122.7K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 84/11

*ThelowendofNaturaLawn’sinitial investmentrangeappliesonlytothe conversionofanexistingbusiness. Franchiseesstartinganewbusinesswill investmorethan$100,000.

79

bluefrog Plumbing + Drain Plumbing and drain services

STARTUP COST

$137.8K-$323.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 36/0

80

iTrip Vacations

Short-term rental property management

STARTUP COST

$101.4K-$140.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 90/1

81

Code Wiz

Coding, robotics, and STEM enrichment classes and camps for ages 7 to 17

STARTUP COST

$120.3K-$199.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 8/2

82

Sandler Training Sales and sales-management training STARTUP COST

$101.8K-$147.1K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 284/0

83

The DripBar IV vitamin therapy

STARTUP COST

$136.5K-$338.3K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 28/1

84

Painting with a Twist Paint-and-sip studios

STARTUP COST

$121.5K-$261K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 224/1

85

911 Restoration

Residential and commercial property restoration

STARTUP COST

$83.6K-$227.4K*

TOTAL UNITS (FRANCHISED / CO.-OWNED) 258/6

*Thelowendof911Restoration’sinitial investmentrangeappliesonlytothose convertinganexistingbusinessorusing financing.Franchiseesstartinganew businesswillinvestmorethan$100,000 withoutfinancing.

86

Bio-One

Crime-scene and trauma-scene cleaning

STARTUP COST

$105.4K-$153.4K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 125/0

87

Sugaring NYC

Sugaring hair removal

STARTUP COST

$118.7K-$200.6K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 24/11

88

ApexNetwork Physical Therapy

Physical therapy

STARTUP COST

$149.2K-$347.2K

TOTAL UNITS (FRANCHISED / CO.-OWNED) 29/61

89

Closet & Storage Concepts/More Space Place

Residential/commercial closet and storage systems; Murphy beds

STARTUP COST

$101.9K-$499.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 36/3

90

ATC Healthcare Services

Medical staffing

STARTUP COST

$132.9K-$214.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 55/0

91

United Water Restoration Group

Water, fire, and mold restoration

STARTUP COST

$122.2K-$508.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 22/12

92

Groucho’s Deli

Sandwiches, salads, sauces

STARTUP COST

$104.3K-$596.2K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 29/2

93

Joe Homebuyer

Real estate

STARTUP COST

$106K-$412K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 48/0

94

GrassRoots Turf

Lawn, tree, and shrub care; mosquito control

STARTUP COST

$100.8K-$151.6K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 19/1

95

Bath Tune-Up

Bathroom remodeling

STARTUP COST

$104.9K-$158.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 37/0

96

Big Frog Custom T-Shirts & More

Custom apparel decorating shops

STARTUP COST

$123.3K-$267.9K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 75/0

97

Transblue

Construction management

STARTUP COST

$147.9K-$244.3K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 21/0

98

Jovie

Childcare, nanny placement, babysitting

STARTUP COST

$105K-$163K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 181/18

99

Health Atlast

Medical care, chiropractic care, physical therapy, acupuncture, massage therapy, vitamin injections

STARTUP COST

$121.8K-$304K

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 10/1

100

Duct Doctor USA

Residential and commercial air duct

cleaning

STARTUP COST

$44.1K-$206.5K*

TOTAL UNITS

(FRANCHISED / CO.-OWNED) 27/0

*DuctDoctorrequiresfranchisees topurchasea$125,000truck.The lowendoftheinitialinvestment rangeconsidersonlya10%down paymentonthatvehicle,ratherthan thefullpayment.

BACK PAGE

The Power of Problems

Instead of trying to avoid problems, what if we saw them as progress?

by JASON FEIFER

We are obsessed with the wrong question.

We ask this question whenever we experience something new. Or create something new. Or see something new. We ask this question of new innovations. We ask it of new relationships and partnerships. Maybe we even ask it of ourselves.

Here’s the question: Is this perfect?

This is a very easy question to answer: No! Nothing is perfect. Which makes this a terrible question. If you are evaluating something’s worth based on whether it’s perfect, then all you will find is imperfections. You will discard absolutely every-

thing. That is not practical.

Instead, we must ask a much smarter question: Is our new problem better than our old problem?

With that question, we’re making room for the reality of imperfection—because there will be problems! It’s a guarantee. Once we accept that, we’re able to track progress more realistically, and identify ways to improve going forward.

I’ll give you an example.

As we all grapple with the future of work, some companies have begun implementing a four-day workweek. This fascinates me. Prior to the pandemic, it’s unlikely that anyone would have taken a four-day

workweek seriously—but now it’s a reality for many workers. The impossible became commonplace.

Here are the results: The transition isn’t easy, but once a company gets it right, productivity stays the same and workers are happier. It sounds like magic! But there’s a problem: After about a year, workers start to say they’re feeling disconnected from each other.

That’s what I heard from the then-director of people at Buffer, a tech company that implemented a four-day workweek, when I recently wrote a story about this movement.

Why are people feeling disconnected? Well, consider

how four-day workweeks are possible. How can you eliminate one-fifth of the workweek, while maintaining the same level of productivity? The answer is, you eliminate as many meetings as possible! And people chitchat a lot less. What you gain in efficiency you lose in connectivity. So, what are leaders to do? This comes down to the question they ask.

Many might be tempted to ask: Is this perfect? We already know the answer: It is not! Sure, employees are happy about having more time off, but they’re also drifting away from each other. If company culture is threatened, bad things could follow. Maybe this whole four-day workweek thing was a bad idea...

That is, until you ask the better question: Is our new problem better than our old problem?

Now we get a different answer, which would go like this: Before the four-day workweek, workers were feeling strained. Now their lives feel more balanced, and they are happier. Recruiting new talent is easier, as is retaining existing talent. Sure, people feel disconnected from each other—but is that a better problem than before? Yes, it is.

The new mission becomes clear: It’s time to solve that better problem, and then start looking out for the next better problem.

Problems are not just signs of failure; they can also be signs of progress. We must learn to recognize and respect the difference. After all, even the greatest leaders will never achieve perfection. No company will grow infinitely and harmoniously. No individual will stroll easily between accomplishments.

The best we can do is improve. And then figure out where to improve next.

Over 25 Years of Franchising Excellence

Pillar To Post Home Inspectors offers a unique and affordable opportunity to build a business geared for success. Our franchise owners enjoy work-life balance and the power of the most recognized brand in the home inspection industry. And as economic environments shift and change, our business model can adapt and respond with flexibility and strength.

Learn more about how the Pillar To Post franchise opportunity might be right for you. Contact us today!