Franchise Journal April 2020 by TheFranchiseJournal

FRANCHISE Journal LEARN Is Your Business Franchiseable? p. 18

APRIL 2020 /FranchiseJournal.com

WE ARE ONE JOIN US

Franchise Expo

See page 14 for details or visit: FranExpoUSA.com

THE SCOOP The Real Secret In The "Secret Sauce." p. 22

HOW TO Maintaining A Healthy Work-Life Balance. p. 98

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WWW.KOALAINSULATION.COM/FRANCHISE Disclaimer: This is not an offer to sell a franchise. An offer can only be made through the Koala Franchise, LLC., 2020 Franchise Disclosure Document. Certain states require franchise registration, check the Koala Franchise, LLC., 2020 Franchise Disclosure Document regarding your state.

DONATE FOOD & HELP FEED AMERICA During COVID-19 Think About Those Who Can't Help Themselves

For more information go to: www.FeedingAmerica.org

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contents

APRIL 2020

VIRTUAL REALITY FRANCHISE EXPO

GOOD CENTS Making Dollars with Good Cents

MCDONALDS The Invention of the Happy Meal By Janice Charles

TERIYAKI MADNESS Fire Grill Fresh By Alison Satriana

Positively Fresh, Positively Delicious

PHILLY PRETZEL FACTORY Where Better Gets Made By Tom Monaghan

Aiming for a Successful Discovery Day By Ann Kohler

XPRESSO DELIGHT COFFEE The World's Leading Coffee Service By Joshua Kovacs

Welcome Notes

The Virtual Reality Franchise Expo

Is Your Business Franchiseable? By Mark Siebert

The Real Secret in the "Secret Sauce" By Mariel Miller

26 MAHANA FRESH 30

Q&A WITH PHIL FRIEDMAN CEO of Salsarita's Fresh Mexican Grill

EVERYTHING GOES AT MIAMI GRILL The Franchise Opportunity That's as Hot as Miami

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

COVER STORY Alone Together Ordering Delivery By Nick Neonakis

VILLAGE JUICE Making Healthy Taste Good

110 NEVER BEEN IN THE FOOD BUSINESS?

VILLAGE JUICE Making Healthy Taste Amazing

VITALITY BOWLS Feed Your Body the Food of Life By Thea Bakkar

82 MODERN MARKET EATERY

Why Start Now? By Martin Greenbaum

114 TRADER JOE'S HAS RAVING REVIEWS — Does Your Business? By Mike Martuza

Enrich Lives with Clean, Nourishing and Delicious Food

118 Becoming Top Dog in Your Franchise Brand

ix Great Reasons Why Franchise S Companies Want Veterans By Dave Cooley

122 Why Not Buy A Business While Planning

This is No Time for Second Best

126 OWNING A BUSINESS IS GREAT FOR

It's a Marathon NOT a Sprint By Dave Jones

THE ENTREPRENEURIAL BLACKHOLE Maintaining a Healthy Work-Life Balance By Amanda Tokos

MANY PEOPLE 4 Reasons Why Owning A Franchise Is Even Better By Seth Lederman

102 Are You Passionate About The Work You and The Life You Live? By Eddie Rodriquez

By Rich LeBrun

for the Next Recession? By Rick Morgin

130 Veterans & Business Ownership By Steve Taylor

134 How Do You Choose the Right Real Estate Firm to Partner With? By Rocco Fiorentino

106 FROM EXECUTIVE TO ENTREPRENEUR How Corporate Skills Transfer to Franchising By Faizun Kamal WWW.FRANCHISEJOURNAL.COM | APRIL 2020

Physical 2020 Franchise Trade Shows Check with providers for new times.

There are alot of choices!

2020 Franchise Trade Shows POSTPONED. Check with providers for new times.

welcome "WE ARE IN THIS TOGETHER and this issue is dedicated to all the heroes in franchising who are working around the clock to keep our country moving forward until the day this pandemic is past us."

NOTES

e are witnesses and participants to a historic global event that is changing the way we live, congregate and interact as humans. Few could have predicted the speed with which our world has changed. However, as businesses are forced to take extraordinary measures, heroes are emerging from all walks of life to combat a silent and unseen terror. One would rarely think of a delivery driver as a hero but she is through the simple act of bringing a family a meal and keeping a restaurant in business. One rarely thinks of nurses and doctors as heroes, until you really need one, but around the world they are on the front line combating this disease. One rarely thinks of our politicians as heroes until they need to make the major decisions that impact a nation. Franchising accounts for 1 out of every 8 jobs in the USA. Those who are running franchise businesses are heroes in every sense of the world. These business owners are the ones bearing the brunt of the global slowdown. Deciding how to keep their employees on payroll. Drawing down their life’s savings to keep their team intact. The ripple effect across the economy their bravery entails is what keeps factories making paint, food, equipment and the thousands of other inputs that are necessary for the economy to move forward. Their guts and grit are the stuff that heroes are made of and in this country we are blessed to have a surfeit of it. We are in this together and this issue is dedicated to all the heroes in franchising who are working around the clock to keep our country moving forward until the day this pandemic is past us.

Nick Neonakis

Editor, Franchise Journal

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

THE GREAT AMERICAN FRANCHISE EXPO

WYNDHAM RIO GRANDE SATURDAY JUNE 27TH 2020 10:00 AM to 5:00 PM

MEET HUNDREDS of FRANCHISE COMPANIES that want to INVEST in

PUERTO RICO

AA A AA A A AA A A A A A A AA A A A A A A AA A A A A A AA AA A AA A A A A AA A

THE FRANCHISE CONSULTING COMPANY WILL DONATE

To any entrepreneur who starts a franchise from the show. TERMS AND CONDITIONS APPLY

FOUNDER

NICK NEONAKIS DESIGN DIRECTOR

Pete Neonakis DIGITAL DIRECTOR

Chantae Arrington ART DIRECTOR

Brenda Lesch

SENIOR EDITOR Bill Polk ONLINE EDITOR Seth Lederman STAFF WRITER Megan Neonakis SOCIAL MEDIA EDITOR Ted O'Shea ASSOCIATE EDITOR Mariel Miller ONLINE EDITOR Mike Ciccarelli VIDEO PRODUCER Matt Panepinto

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

CONTRIBUTORS Thea Bakkar Janice Charles Dave Cooley Rocco Fiorentino Evan Friedman Martin Greenbaum Dave Jones Faizun Kamal Ann Kohler Joshua Kovacs Rich LeBrun Seth Lederman Mike Martuza Mariel Miller Tom Monaghan Rick Morgin Eddie Rodriquez Rhonda Sanderson Alison Satriana Mark Siebert Steve Taylor Amanda Tokos Farrellynn Wolf Dave Wood

FRANCHISEJOURNAL.COM

If you want to get ahead in franchising, The Franchise Journal has the most concepts and tactics to help you become a business owner.

Share with your friends. franchisejournal.com

JOIN US

THE

VRFE

(Virtual Reality Franchise Expo) The speed

with which the Coronavirus has spread around the F r a n c h i s e E x p o world is what everyone is talking about. As it has stopped the world in its tracks hundreds of industry categories have felt the devastating pain of having to stop their production, their events and their business. Trade shows are one of the hardest hit. As people may not congregate, the very definition of a trade show. Perhaps for long after this pandemic is over, people will stay wary of being in close proximity to one another. Once, what was one of the great joys in life, seeing old friends and making new ones, may now be curtailed as hugs give way to elbow bumps and maintaining a safe distance is an unknown metric that everyone tries to adhere to. However, there is something more powerful and resilient than any virus; the strength and innovation of American business. This agility is being shown by The Great American Franchise Expo as it pivots from a traditional trade show format using Virtual Reality to one that is Online

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

and using Virtual Reality. Rightfully claiming the title as the original and largest Virtual Reality Franchise Trade show in existence, The Great American Franchise Expo has been the innovator in using Virtual Reality in franchising since 2017. They have rolled out a multitude of VR Trade Shows that will connect franchise companies with entrepreneurs so when the pandemic has ended, the economy can get back to work. “Our platforms have been extensively developed and tested over the past 2 ½ years” says Abel Beyene Director of The Great American Franchise Expo, “we are able to combine Virtual Reality with human interaction in a way never before seen in a trade show. You can use your own smartphone that has capabilities you have never imagined and you don’t have to leave your home to do tours of hundreds of franchise companies. If you have never experienced Virtual Reality, you’ll want to attend one of our online trade shows by signing up at www.franexpousa.com” • Virtual Reality (VR) is the use of computer technology to create a simulated environment. • Virtual Reality’s most

immediately-recognizable component is the headmounted display (HMD). Human beings are visual creatures, and display technology is often the single biggest difference between immersive Virtual Reality systems and traditional user interfaces. Virtual Reality (VR) is the use of computer technology to create a simulated environment. Unlike traditional user interfaces, VR places the user inside an experience. Instead of viewing a screen in front of them, users are immersed and able to interact with 3D worlds. By simulating as many senses as possible, such as vision, hearing, touch, even smell, the computer is transformed into a gatekeeper to this artificial world. The only limits to near-real VR experiences are the availability of content and cheap computing power. What’s the difference Between Virtual Reality and Augmented Reality? Virtual Reality and Augmented Reality are two sides of the same coin. You could think of Augmented Reality as VR with one foot in the real world: Augmented Reality simulates artificial objects in the real environment; Virtual

GET YOU

FREE R

VIRTUA REALITYL HEADSE T!

MEET WITH HUNDREDS OF FRANCHISE BRANDS!

FOR DATES & REGISTRATION DETAILS VISIT: FRANEXPOUSA.COM

Franchise Expo

Reality creates an artificial environment to inhabit. In Augmented Reality, the computer uses sensors and algorithms to determine the position and orientation of a camera. AR technology then renders the 3D graphics as they would appear from the viewpoint of the camera, superimposing the computergenerated images over a user’s view of the real world. In Virtual Reality, the computer uses similar sensors and math. However, rather than locating a real camera within a physical environment, the position of the user’s eyes are located within the simulated environment. If the user’s head turns, the graphics react accordingly. Rather than compositing virtual objects and a real scene, VR technology creates a convincing, interactive world for the user. Virtual Reality technology Virtual Reality’s most immediately-recognizable component is the headmounted display (HMD). Human beings are visual creatures, and display technology is often the single biggest difference between immersive Virtual Reality systems and traditional user interfaces. “Our technology runs on your smart phone and we will send you a VR head set free of charge so you can be totally immersed within the images as you are talking with a live human being about what you are seeing. Asking questions, getting answers and feeling like you are actually touring a facility in a way you have never imagined” Says Nick Neonakis, CEO of the company.

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

To sign up for one of The Great American Virtual Franchise Expos, go to www.franexpousa.com

TOUR HUNDREDS OF FRANCHISE BUSINESSES FROM YOUR HOME!

Reach out today to get your FREE VR Headset and check out the hottest franchise companies from the inside.

The FCC VR allows you to go into franchise companies and do a self guided tour in Virtual Reality.

www.FranExpoUSA.com

EXPERT ADVICE

Is Your Business Franchiseable? by Mark Siebert, Founder, iFranchise Group Business owners looking to expand their business through franchising need ask themselves four questions, and if the answers land in the right spot, chances are favorable that their business will succeed as a franchised brand. The questions (and answers!) are crucial, however, so take your time on them. The first question to ask is “Is your business marketable? In other words, does it have some quality, a unique value proposition, that makes it appealing to a potential buyer? Sometimes your key differentiator can be easily identifiable, like the guy who invented chicken and waffles together as an entrée, but sometimes it develops more subtly. It may reveal itself within a marketing campaign, from the look of operations, because it is part of a booming market, or even because of the way it appeals to a particular franchisee – a pet lover who wants to open a doggie daycare, or a gamer who dreams of a virtual reality family entertainment center. Regardless of the point of differentiation, the business must set itself apart from its competitors.

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

Next, determine if your business is replicable and readily teachable. Some concepts are too complex. The best franchises have very specific systems to follow so get all those ideas of how to run your business down on paper. Some thrive in particular regions and won’t perform well elsewhere. Think of a swimsuit shop on the beach – it’s not going to necessarily succeed in a colder climate. Keep in mind that franchise prospects come from a myriad of backgrounds, so you need to make sure any of them can adopt your business operations, adapt to your business model and follow the system. The

system you create includes everything from an operations manual for day-to-day activity to formal and informal training programs. The most important thing about having appropriate systems in place is the ability to enforce your standards from a professional and legal standpoint. Now let’s talk about money. Often prospects skip right to the bottom line, eager to understand the return on investment (ROI), and rightly so. For most people, investing in a franchise is a life changing decision. The formula for finding ROI is simple: Adjusted cash flow divided by total cost

of investment. A potential franchisee will want to know when he can expect a measure of profitability measured against the money that was invested to get the franchise started. A franchise business must provide its franchisee enough profit, after royalty, to earn an acceptable return on their time and money. Have the forethought to consider any factors that can affect the success of your franchisees, including market trends and conditions, capital resources and business management, which brings us to our final question. Do you have a team in place to support your franchisees? We’ve heard the slogan a thousand times: Franchising is a way to go into business for yourself but not by yourself. This is one of the most appealing aspects of franchise ownership for potential franchisees. They want to know they won’t be “going it alone,” so you must assure them that won’t happen. The

single most important aspect contributing to the success of any franchise program is the strength of its management team. A good support program may not be the key to selling the franchise – but it is often the key to franchisee success. So be sure to create an excellent support program for your franchisees and watch how it enhances both your franchise development efforts and the longevity of your franchise owners. The most important thing

to remember is that your franchisee’s success dictates your success as a franchisor. So while it is important to make sure your franchise program is marketable, replicable, and has the potential to offer a good ROI – the key to your readiness to franchise will ultimately be your ability to support new and existing owners in the system. If your franchisees are wildly successful, your franchise program is almost guaranteed success.

THE MOST IMPORTANT THING ABOUT HAVING APPROPRIATE SYSTEMS IN PLACE IS THE ABILITY TO ENFORCE YOUR STANDARDS FROM A PROFESSIONAL AND LEGAL STANDPOINT.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

AN ICONIC BRAND RE-ENERGIZED FOR TODAY’S MARKETPLACE APPROXIMATELY 500 LOCATIONS Affordable, scalable and profitable // Multi-unit retail/service opportunity // Legendary brand, category leader

A NEW ACQUISITIONS & CONVERSION MODEL:

Martinizing employs a unique real estate approach that seeks out existing dry cleaning business owners who are ready for an exit, allowing new franchisees to open quickly and minimize their initial investment.

A B U S I N E S S W I T H M U LT I P L E R E V E N U E S T R E A M S

Mobile App-Driven

Retail

Routes

Lockers

Mobile App-Driven

On-Demand

Spanning Eight Countries // 70-Plus-Year Heritage // Open for Business Quickly Total Investment: $419K-$736K // Liquid Capital Requirement: $150K Net Worth Requirement: $700K

CORPORATE SUPPORT ENCOURAGING REAL BUSINESS GROWTH

On-going. corporate support and education puts Martinizing owners on a path to success.

Site Selection // Financial Analysis // Store Design & Buildout // Comprehensive Training Existing Cleaner Acquisition Assistance // On-Going Operations & Marketing Support Individual financial results may differ from results stated in Item 19.

FRANCHISE INQUIRIES < Kira Kusky // kira.kusky@thinkhuntington.com (Jo Gonzalez // jo.gonzalez@thinkhuntington.com)

EXPERT ADVICE

The Real Secret in the “Secret Sauce” by Mariel Miller, Consultant, The Franchise Consulting Company A lot of people look at franchise opportunities with the idea they will discover a “ secret sauce” in the product or part of the service. They expect that the secret will clearly distinguish this one product/service from the rest , and be the obvious reason the brand is a solid investment. When they don’t find it, ( and “it” can be making burgers, cutting hair or grooming dogs...) they conclude, “Why would I get involved with and pay ongoing fees when I start my own?”. Unfortunately, great candidates looking at great concepts, but doing it with the wrong orientation never get very far. It’s easy to avoid confusion and disappointment by adopting the right way to evaluate franchise opportunities. So, YES, there is a secret sauce to discover, but rarely is it solely found inside the product/service. Secondly, contrary to popular belief, it’s rarely the “ brand name”. Brand is important, but there is much more in store for you as you discover how sophisticated franchises are becoming, and what your fees are buying. A complete investigation of a quality franchise will impress you, Surprise you and demonstrate a value-proposition thats not replicable by an independent start-up.

LET'S BREAK IT DOWN

The main benefit of becoming a franchisee is that the business offers a consistent product or service according to ever-improving operating systems. Specifically, you’re provided the proven

best practices of how to deliver the product/ service, acquire and keep customers, handle finances, distribution and scaling. This offers an immeasurable advantage to the new business owner. Now, in addition to the systems…of course there is a benefit to sharing a unified brand. Whether it is recognized on the local level, regional or national, a brand that is scaling serves as an advantage before and after you invest. The right business will build brand nationally while the franchise focuses on the hyper-local level. A brand promises a familiar and repeatable customer experience, taking us back to the importance of proven operating systems in all business functions. We like to say, “ In franchising, the systems manage the business, the people manage the systems, you manage the people” Therefore, when evaluating brands for their distinctions (secrets), you’ll find them in their systems. This is the goal of your investigation: To appreciate the franchisors value-proposition by understanding ( at a high/level) the proven strategies and protocols in place that support your success. Access to training programs for franchisees before they open their business. With the right brand, you can be successful without any prior experience or knowledge about the product or service due to wellconstructed, up-to-date initial Business training. This creates an attractive situation for folks

WITH RAPID CHANGE IN MARKETS AND IN CONSUMER NEEDS, SMALL BUSINESSES MUST BE VERSATILE AND RESPONSIVE TO REMAIN RELEVANT. 22

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

burnt out in their careers and/or curious about other business sectors. In these trainings, you will learn the confidential and proprietary business processes that have evolved from the franchisor’s trial-and-error. Rookie mistakes will likely have already been ironed out. This reduces the risk of failure compared to someone starting a small business on their own. Essential advertising and marketing assistance. In any business, customer acquisition is paramount. A sophisticated, multi-faceted approach is vital, and both strategy and execution need constant attention. In a well-designed franchise, the corporate offices have marketing departments staffed with talented subject-matter experts. They perform marketing research, which leads to better targeting and more effective campaigns. They help with marketing plans, budgets, buys, creative, PR etc. To name a few of the support areas. Most importantly, they create and build the brand and its standards, key to the health of the network. Intensive Initial and Ongoing Training The franchisee is given the necessary training to start his business and eventually run it smoothly. The franchisee as well as his employees are taught all the business systems of the company covering product preparation, quality standards,

business controls, recruitment of personnel, and marketing. Often, the home office will provide training to the franchise staff on a continuous basis. National, regional and local events & online libraries should be looked at and added to the value of offer. Approved Vendor Programs The franchisee can procure necessary supplies at lower costs because the prices are negotiated by the company with the suppliers on behalf of all the franchise units. Because of the size and projected regularity of orders, the franchisor can expect or negotiate quantity discounts. This gives franchisees advantages over their competitors because they can reduce expenditures on a continuous basis. This procurement set-up is more advantageous to the franchisee vs. purchasing supplies independently through local channels. National and/or Regional Co-op Promotional Campaigns A franchise is the beneficiary of marketing campaigns made possible by sharing of the costs by the franchises. Generally, franchisees pay an advertisement contribution to the company as their share in the cost of promotional campaigns and brand building on a national and regional level, effectively spreading the cost among all the franchises. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

pop operator do not have the benefit of getting a look at such a picture. Obviously, forecasting revenues, profits or making key decisions relies on anecdotal or incomplete data. Another common structure we see among top concepts are “Owner Groups”, where franchisees come together and work on each other’s P & L’s and business challenges. These peer groups offer valuable support and feedback as fellow franchisees are not the competition but understand each others. businesses intimately.

This accounts for the large marketing resources of the franchisor, enabling the company to avail the services of some of the better agencies and suppliers. Benefiting from a large and growing promotions budget is a potent advantage that is difficult for solo players to overcome. Continuous Research and Development Based on category and product/service, we often see franchisors committed to continuous research and development .The franchisors improve existing products/services and develops, tests and rolls out new ones regularly. With rapid change in markets and in consumer needs, small businesses must be versatile and responsive to remain relevant. The chance to seize opportunity is limited, so companies with manpower and focus on tomorrow’s needs generally thrive. Performance Benchmarking In a growing franchised system, there are businesses duplicated nationally, generating statistics that can be measured and analyzed. Quality franchisors are data-driven, tracking and creating benchmarks for your operation to use. Systems that assist you in understanding and taking action on key performance indicators are crucial in building a strong and sustainable business. Very small chains, or the mom and

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

Executive Talent By partnering with a strong franchisor, you are, in essence, hiring a team of top-notch professionals to support you. At a certain point of maturity, great franchisors plan to have a Manager, Director or Vice President of each discipline. Marketing, Operations, Training, IT, Customer Service, Real Estate, and Product/ Service Quality, as well as a few executive level management people that run the show. As the franchisee, you have access not only to your own field support people, but any executive you need to help you at any time. The contribution these seasoned professionals can add to you and your business is invaluable and often overlooked as a specific benefit. Get to know key players during Discovery Day at the corporate office and realize their immense value. Too good to be true? Hardly. In every growing category we find a very special group of brands creating this kind of value and more for their franchisee partners. Here is where you should set the bar! Once you’ve seen what good really looks like in franchising, you’ll truly understand the “Win-Win” foundation underneath the most successful franchise systems today. Not to mention, you’ll know not to look under the bun next time you’re curious to discover their actual “secret-sauce”. ABOUT THE AUTHOR Mariel Miller is a popular consultant to professionals curious about franchise investing. In 2019, she was recognized in the top 1% of franchise experts in the country. Reach out & find out why at (732) 298-0900

FRESHNESS ISN’T JUST A SAYING, IT’S A COMMITMENT. A SINCERE BELIEF THAT A GOOD MOOD BEGINS WITH GOOD FOOD AND EVERYONE HAS A PLACE AT THE TABLE. VISIT OUR WEBSITE FOR FRANCHISE INFORMATION MAHANAFRESH.COM MEET MAHANA AT THE WORLD'S BIGGEST VIRTUAL FRANCHISE EXPO! FOR DATES AND REGISTRATION DETAILS GO TO: WWW.FRANEXPOUSA.COM

ABOUT US

Mahana Fresh

Positively Fresh, Positively Delicious by Dave Wood, Founder & CEO of Mahana Fresh

“WE CHOOSE TO LOOK ON THE BRIGHT SIDE OF EVERYTHING. That’s why we always speak in a manner of positivity. Welcoming. Friendly. Earnest in our mission to help people eat well and feel better about themselves. No matter who you are, you always have a seat at our table.” 2 long time entrepreneurs and friends decided to make a difference in healthy delicious eating they could bring to a wide audience and Mahana was born. In the tropics, “mahana” means “the sun.” The idea for a bright, upbeat eatery that offers big portions of quality food is centered on fresh bowls for customers striving to eat healthier. Founded by CEO Dave Wood and President John Thomas, the two knew they were on the right track when they opened their first locations and a mother came up to them and said “thank you for making a restaurant

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

where we can all get something we like and I feel good about letting my kids eat it!” “Freshness is a commitment at Mahana Fresh where everyone has a place at the table,” Wood said. Prior to launching Mahana, Wood spent decades in the franchise food space as a franchisee and franchisor of iconic brands. The idea behind Mahana

is to present its options in a convenient manner that can accommodate a wide range of dietary needs. They do not use high fructose corn syrup, and many ingredients are gluten free and dairy free. Mahana Fresh offers three sizes of bowls with customers choosing from fresh ingredients in a service line. There are bases like basmati rice, spinach salad or sweet

potato noodles; veggies such as oven-roasted mushrooms, honey sriracha Brussels sprouts or Buffalo cauliflower; proteins ranging from Key West chicken or Seasoned steak to Spicey ahi tuna or miso roasted tofu. Sauces are citrus ginger, creamy wasabi or coconut sweet potato, among others and topping it all are roasted almonds, avocado or cheeses. The Big Mahana bowl that comes with two bases, two proteins, two veggies and choice of sauce costs $9.99. The Mahana bowl for $8.29 includes one base, one protein, two veggies and choice of sauce. There’s also a Lil Mahana option for $6.99. An

upgrade to steak or tuna costs $1.50. For dessert, Mahana Fresh provides zucchini brownies, chocolate chip cookies or snickerdoodles. “I love sweets and when we first pulled the zucchini brownies out of the oven I was nervous to eat them” says John Thomas, who before founding Mahana spent a career working in TV retailing as CEO of QVC Japan, “when I ate them I couldn’t stop. They are that good.” There’s an impressive beer selection including awardwinning local craft brews as well as wines available, plus pressed juices, house-made teas and sodas. The menu will continually evolve based

on freshness, customer preferences and food trends. Mahana Fresh brings an understated tropical setting in keeping with its laid back coastal lifestyle theme. They offer dine in, take out, delivery and catering options. “Catering is a huge opportunity for Mahana as the food travels well and can be served in multiple settings” says Wood, “ the value we bring is tremendous and our franchise owners are proud to be part of the mission to bring a little sunshine to their clients each day.” For more information on Mahana go to: www.MahanaFresh.com Or Contact Patrick Sommer 980.216.0533 patrick.sommer@ mahanafresh.com WWW.FRANCHISEJOURNAL.COM | APRIL 2020

A DIVISION OF KEYSER

DON’T HAVE A REAL ESTATE DEPARTMENT?

WITH F.R.E.D.

NOW YOU DO WHAT’S F.R.E.D.? Franchise Real Estate Department (F.R.E.D.) is your team of franchise commercial real estate experts.

F.R.E.D. IS ALWAYS

ON YOUR SIDE

As a franchise-focused division of Keyser, F.R.E.D. gives you all the power and resources of a commercial real estate brokerage, with a focus on franchising.

F.R.E.D. only represents tenants, never landlords, so you know we’ve always got your back and are ready to negotiate aggressively for you and your franchisee.

From site selection, to lease negotiations and hanging your official “Now Open” sign, F.R.E.D. helps remove the hassle by coordinating with construction, legal, and your landlord throughout the entire process at no cost to you or your franchisee.

CHAT WITH F.R.E.D. ROCCO FIORENTINO

rf@keyserco.com 609.206.4300

TY BREWSTER

tbrewster@keyserco.com 623.332.3201

OR VISIT US ONLINE www.keyserco.com/fred 602.9.KEYSER

ABOUT US

Philly Pretzel Factory Where Better Gets Made by Tom Monaghan, Chief Development Off icer, Philly Pretzel Factory Dan partnered with his college buddy Len Lehman to establish the first Philly Pretzel Factory location. Dan and Len were inspired by their love for pretzels and experiences, so it was no surprise that their pretzels are delicious! Opening their first Philly Pretzel Factory as an actual storefront instead of in an industrial space was an experiment, a kind of “why not try this”. What resulted was a line that never went away and a fanbase always hungry for more! OUR HISTORY: PHILLY BORN AND BREAD Founder and CEO of Philly Pretzel Factory, Dan DiZio, started selling soft pretzels on the street corner at age eleven, becoming a child entrepreneur with a sales team of kids from all around town. He missed the pretzels business when he went away to school, so after graduation

WHERE BETTER GETS MADE Being “Better” sounds easier than it is. It takes dedication. Risk-taking. A refusal to compromise your principles. And yeah, sometimes that means keeping things simple. From our shape to our recipe, wholesome is how we do things better, every time. It’s not just about what goes into our pretzels. It’s about how you

feel when you eat one…or four! It’s in the memories you make at tailgates, birthday parties, and movie nights – and the happiness you feel when you take the first bite. Better is how we measure ourselves. At Philly Pretzel Factory, we dedicate every day to the craft, the creation, and the experience of better. BETTER FRANCHISE OWNERS AND BROAD CUSTOMER BASE: Our franchise owners become the “Pretzel Mayors” of their town. They are heavily involved in the community. They offer tremendous value on a volume of better snacks and meal replacement items. It all adds up to serving an awesome combination of customers: retail customers; business account customers and catering/party tray customers.

THE SMALL ORIGINAL STOREFRONT WAS THE ONLY THING DAN AND LEN COULD AFFORD, AND IT TURNED THE “FACTORY” MODEL INTO A RETAIL STORE THAT SERVES HOT OUTTA’ THE OVEN PRETZELS SEVEN DAYS A WEEK. IT WAS THE BEGINNING OF “WHERE BETTER GETS MADE”? 30

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OUR FRANCHISE OWNERS BECOME THE “PRETZEL MAYORS” OF THEIR TOWN,WHILE SERVING RETAIL CUSTOMERS; BUSINESS ACCOUNT CUSTOMERS AND CATERING/PARTY TRAY CUSTOMERS.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

BEING “BETTER” SOUNDS EASIER THAN IT IS. IT TAKES DEDICATION. RISK-TAKING. A REFUSAL TO COMPROMISE YOUR PRINCIPLES. AND YEAH, SOMETIMES THAT MEANS KEEPING THINGS SIMPLE. 32

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HOW WE DO IT: FACTORY FRESH Sounds like an oxymoron, right? Wrong. All of our pretzels are hand-twisted and baked fresh using proprietary equipment and an ingredient list that’s short and sweet. Flour, water, yeast, and a pinch of salt are all you knead for a fresh, nomess snack. Simple makes them better! Because our pretzels are so deliciously simple, we leave it up to you to customize with dips and mustards. You’ll also find our pretzels wrapped around specialties like cheesesteaks and hot dogs. # OF UNITS After more than twenty years of twisting, Philly Pretzel Factory has almost 200 locations and making things better as we grow into additional states every year.

HOW THEY CONTACT YOU Contact Tom Monaghan, Chief Development Office for more information at tmomaghan@spfsicn.com or (800) 679-4221.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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Q&A

Q&A with Phil Friedman CEO of Salsarita’s Fresh Mexican Grill by Rhonda Sanderson, Founder of Sanderson & Associates

Interviewer (Rhonda): What spurred Salsarita's to add a drive thru at many existing and now future locations? Phil: Drive-thru has been a long-term ambition of mine since I bought the brand, and we have gone through a lot of evolution since. With the development of our new prototype – the “new Salsarita’s” as I call it – with improved kitchen efficiency and strong franchisees eager to implement, we were ready for drive-thru. What is unique was tailoring our build-yourown concept to a drive-thru menu. Salsarita’s was not pioneering the concept of drive-thru, rather we were getting on trend with other QSR concepts, such as Panera.

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Rhonda: Why do you think it has been such a success? How does drive thru enhance the Salsarita's experience? Phil: Primarily because it’s what our consumers want, but also because we are achieving drivethru-level speed. They want convenience and accessibility, and drive-thru and online ordering satisfy that. Our online capabilities exemplify this convenience and accessibility, allowing guests to pick up orders in the restaurant or the drive-thru. Fast casual is all about better food in a better environment. Drive-thru allows guests to choose their environment, while still getting that better food.

DRIVE-THRU ALLOWS GUESTS TO CHOOSE THEIR ENVIRONMENT, WHILE STILL GETTING THAT BETTER FOOD.

Rhonda: I understand the brand is adding drive thru to more existing and new locations. Is the plan for all stores to have a drive thru or will it be determined on a case-by-case basis? If not, roughly what percent do you expect drive thru to comprise for the Salsarita's system? Phil: Overtime our system will be heavily drive-thru, led by new development as our existing restaurants have limited conversion opportunities. We anticipate up to 80% of new development, both franchise and company, will be drivethru. We will have four drive-thrus by the end of the year (all franchise) and four company-owned drive-thru locations by the end of 2019. We will also add two drive-thru locations in Mississippi, where I am the franchisee, by the end of 2019. Rhonda: What do you think the future of drive thru holds both for Salsarita's specifically and the restaurant industry in general? Phil: Drive-thru has become and will continue to be an integral part of our growth. It gives us the opportunity to add breakfast (an additional daypart of us) and late night in select markets. So much of our business is off-premise, and that will continue to be

the theme for us and other fast casual concepts as we evolve to meet consumer demands. Over time you will see more and more fast casuals adapting to include drive-thru. And you will see our development and growth in both airport and campus locations. Stay tuned! ABOUT SALSARITA’S FRESH MEXICAN GRILL Founded in Charlotte, N.C. in 2000, Salsarita’s Fresh Mexican Grill offers

Mexican favorites such as five flavorful house-made salsas, custom burritos, tacos, nachos and salads made fresh to order with an extensive selection of proteins, toppings and fillings. Salsarita's was acquired by franchise industry veteran Phil Friedman in 2011 and operates more than 85 locations in 18 states, including 15 that are company-owned.

FOR MORE INFORMATION Visit www.salsaritas.com, like us on Facebook at http://www.facebook.com/ salsaritas and follow us on Twitter and Instagram @salsaritas.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

ABOUT US

Everything Goes at Miami Grill The Franchise Opportunity That's As Hot As Miami by Evan Friedman, VP Miami Grill

It's all about the experience ... top quality food, a South Beach/ Miami vibe and unparalleled service! You get a mini vacation in a restaurant that radiates with excitement. Pitbull, Mr. Worldwide, can be seen looping on the screen. He also sits on our Board of Directors as an equity partner. You enjoy your meal in an upscale setting. It's your personal get-away from your everyday routine. Tired of arguing about where to go because everyone wants something different to eat? Fight no more! With our menu, Everything Goes! We have something to whet everyone's appetite, served made to order with authentic products brimming with freshness. If it's on your mind, it's on our menu. What makes Miami Grill® so special is that everything on our menu is authentic and the best in category. We source our cheesesteak from the heart of Philadelphia. The gyro meat,

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pita bread and tzatziki sauce come from a Greek supplier in Chicago. Our fresh Angus burger has never been frozen, is hormone, antibiotic and steroid free. Every item on our menu is made fresh to order just for you. All day the restaurant is filled with the irresistible aroma of fresh baked bread, brioche and multi-grain rolls made with our special dough to make each meal stand out. Nothing beats fresh like our mouthwatering Fresh Angus Burger and All White Meat Char-Grilled Chicken Breast cooked to order sandwiches. DIFFERENTIATION Most Fast Casual concepts focus on a vertical product {one type). Five Guys® is burgers, Chiporle® is Mexican, Panera® is sandwiches, Firehouse Subs®

is subs, Marco's Pizza® is pizza etc. However, with Miami Grill® it's all about the horizontal {wide choices). We bring in the BEST of categories. Everything Goes! The BEST cheesesteak, the BEST gyros, the BEST wings, the BEST burgers, the BEST house-made salads and more. Everything Goes! For the first time ever, according to the chart below, consumer spending on dining out has taken over grocery store purchases. Today, Americans eat out 4.5 times per week. Couples disagree about what to eat 1.7 times per week. They want a place to go where everyone is happy. Our brand offers choices for all, so go to a Miami Grill® and the entire family is happy.

PASS THE MENU, PLEASE Spending on dining out has overtaken grocery store purchases for the first time ever Groceries

Restaurants & Bars

$55B 50 45 40 35 30 25 20 15 10 Jan 1992

Jan 1995

Source: Commerce Department

Jan 1998

Jan 2001

Jan 2004

Jan 2007

Jan 2010

Jan 2013 Mar 2015

Celebrating Nearly 30 Years Of Great Food And Service 1980s

2011

Mr. Submorine, on upscale sandwich shop, opened in Key West, Florida.

Positive sales trend, new advertising agency, new TV spots released

1990s Miami Subs® grew to 190+ locations and expands it's menu to include grilled items such as burgers, chicken and our now famous Philly cheesesteaks.

2000s Nathan's acquires the franchise brand; growth for the brand slows and brand marketing efforts were significantly reduced.

2007 Miami Subs® Capitol Partners acquires the franchise brand.

2010 New management team takes over, bringing over 62 years of proven experience to the iconic franchise brand

2012 Pitbull equity partnership announced. Rollout of new Fresh Angus Steak Burgers and healthy dining options. Worldwide franchising efforts, national and viral media outreach supporting Miami Grill® investment franchise opportunity.

2013-2018 Expansion plans include Daytona, Orlando, Jacksonville, Texas, the Middle East, Malaysia, Myanmar, Panama and South Florida.

THE BEGINNINGS Miami Subs® opened under the name Mr. Submarine in 1988 and soon changed its name to Miami Subs® which grew to become Florida's largest regional sub and grill chain. It was started by Konstantinos "Gus" Boulis of Greek decent. Boulis started off as a fisherman before taking a job as a dishwasher at a Mr. Submarine sandwich shop. The original owners of Mr. Submarine, now known as Mr. Sub, were Jack Levinson and Earl Linzan who opened their first shop in Toronto, Canada in 1968. It was Gus Boulis who showed Levinson and Linzan how to franchise. He soon was offered control of one of the stores, and shares in the corporation. In his five years with the company Boulis developed a chain of over 200 stores. The sale of Boulis's shares in the company in the mid-1970s made Boulis a multimillionaire at 25. In 1979, Boulis moved to Florida with the intent to retire, however he soon began building the popular Miami Subs® (Grill). He continued his success in the food business, expanding the Miami Subs® chain throughout Florida and beyond. Miami Subs® built the concept and expanded rapidly in the 90's, starting in Florida and spreading quickly nationwide. Many were "A" locations, free standing buildings with drive-thru, as well as stores in nontraditional locations such as: schools, highway rest areas (particularly along Florida's Turnpike) and airports. The restaurants WWW.FRANCHISEJOURNAL.COM | APRIL 2020

featured distinctive exterior designs with Miami-inspired pastels trimmed with pink and blue, neon lights and interiors decorated in a tropical motif. However, in 1994 Bou I is started "SunCruz" Casinos and took his eyes off Miami Subs®. He decided to sell the company in 1999 to Nathan's Famous®. THE NATHAN'S ACQUISITION Nathan's Famous® purchased the chain bringing Nathan's, Miami Subs®, and Arthur Treacher's brands under a common corporate umbrella. The chain had approximately 175 outlets at acquisition. This was more of a real estate transaction for Nathan's as real estate values increased exponentially from 2000-2006. Miami Subs® owned very valuable hard corner properties which Nathan's sold off piece by piece to drug store chains and banks. Postacquisition the chain struggled, due in part to instability in the management ranks and the sales of prime locations. In 2007, Nathan's Famous announced the sale of Miami Subs® to a private investment group under the name of Miami Subs® Capital Partner l Inc. At the time of the sale, the chain had 59 locations. Management still struggled and finally a fresh vision was announced by bringing in a new CEO.

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In 2010 Richard Chwatt took over and began to revitalize the Miami Subs® brand. He wanted the excitement back in this aging brand that everyone had spoken about. His motto was to renovate, relocate or terminate to start the turnaround. The excitement came back and the vision and reality of Miami Grill® emerged. PITBULL JOINS AS EQUITY PARTNER In 2012, Armando Christian Perez, a.k.a. Pitbull joined the team as an equity partner bringing his star power to help our brand flourish. "I'm no longer just an artist. I'm a business partner. Daleeeeee!" - PITBULL The true legend and staying power of the brand is our food. It's all about fresh food and choices. We feature, Philly cheesesteaks, wings, gyros, grilled seafood, handmade fresh Angus steak burgers, pitas, platters, garden fresh salads, hot and cold subs, chicken, breakfast and more. We also carry a great selection of craft beers, wines and legendary Dom Perignon champagne. Dom Perignon you ask? We sell Dom Perignon because the founder "Gus" of Miami Subs® felt the best name in champagne was Dom Perignon, and the best quality food was at Miami Subs®. So

he put together a combination for $109. 99-a bottle of Dom Perignon and a dozen wings. A famous story has it that Madonna used to come after all of her shows. She would order the combo, and our drive-thru staff would hand it to her through the top of her limo. She'd be drinking "Dom" and enjoying her wings after her performances! It's a fast casual concept that has a modern, fresh approach with a South Florida tropical flare. A look that is inspired by the Miami lifestyle. Every meal is prepared fresh before your eyes. It has something on the menu for everyone. As mentioned, research shows that couples argue 1.7 times per week where to eat. Our menu makes families happy! It is a strong Miami iconic brand that has been serving great food over its 25 years' history.

Meet NuVinAir

at the world's biggest virtual Franchise Expo! For dates and registration details go to: www.franexpousa.com

MEET FRANFUND

at the world's biggest virtual Franchise Expo! For dates and registration details go to: www.franexpousa.com

ABOUT US

Making Dollars with Good Cents by Farrellynn Wolf, CFO Goodcents deli f resh subs

Room to grow nationwide, industry-leading training, trade area specific marketing, proprietary product manufacturing and a 30+ year proven concept are just some of the reasons we are prepared for our next evolution at Goodcents. It’s an evolution based in who we are and what we do, not passing fads or deep discounts. Consumers today are much more aware than the consumer of yesterday. We pay attention to product labels, operational processes and company values when discerning where to shop, where to eat. With the proliferation of the internet and social media, what you do in the dark is pretty well lit. For over 30 years, Goodcents has been doing in the dark what we would be proud to show off in the light.

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We have been putting in the work to make a great product that is unlike any other on the market. Proprietary dough manufacturing and loaves baked twice every day in our restaurants assure our pillowsoft bread is consistently exceeding guest expectations. Melt-away cookies the size of your face, and the ability to continually innovate our recipes, keep a smile on every face in the dining area. Meats, cheeses and vegetables sliced and prepared by hand on 16” subs make us a little better and a little fresher than the competition. But, we aren’t just a sandwich shop anymore. As consumer education has changed, so have consumer spending habits. The grabn-go segment has been on a continual climb, and that climb doesn’t appear to be slowing in the immediate future. To take advantage of this, we have taken a legacy product,

our pasta, and moved it into a grab-n-go format with new favorites like Classic Pot Roast and Grilled Alaskan Salmon. Goodcents To Go is revolutionizing our guest and franchisee experience. It has empowered us to deliver a more consistent product than the antiquated hot-hold alternative, reduce labor and waste and add a few new guests to our loyal fandom, and our franchisees are reaping the rewards. The driving force behind this consistency in excellence is a unique support model. Our franchisees are small business owners that make our brand what it is, and we owe it to them to provide objective and targeted feedback so we can grow together. Our scorecard ranks our 69 locations in 8 states (with 2 new locations currently in development) on their comp. transactions,

profitability, average online review rating, guest relations complaints, online training completion, average mystery shop score and 200 point audit score. By tracking these data points, we can speak to the improvement efforts individual locations need to make and provide a consultant who is an expert in that area, not just a catch-all “problem solver.” Our company values, summed up in the acronym TROPIC, have created a culture that ties everything together, that holds us mutually accountable to our franchisees and to ourselves. TRUST We can be confident that we have each other’s best interests at heart. There is no sense of judgement, we back up and support one another. RESPECT Every person on our team plays an integral and valuable role. We embrace our differences and approach our successes as well as our mistakes with understanding and support. OPENESS We seek first to understand, allowing others to be heard without judgement. We have candid and honest discussions to foster strong relationships and creative solutions.

These values guide our conversations and inform our deci-sions. They assure that our existing franchisees will get the same level of support they have come to enjoy no matter how many new locations we add to our system. They have also powered us to some of our strongest comps in compa-ny history. This is a culture and a concept that scales, and we are so proud to shine a little light on it for you.

PERSONAL GROWTH We challenge ourselves and one another to grow daily. Continued education is celebrated at Goodcents. We understand the immense value of progress and balance in our everyday lives as we work forward to accomplish our common goal. INTEGRITY We maintain the highest standards of professional behavior and ethics. We are dependable, take ownership of our responsibilities and are accountable for the results. COLLABORATION We are empowered to ask for help and intentionally pursue cross-functionality understand-ing that others have experiences and knowledge that we do not. “That’s not my job,” is not in our vernacular. Instead, our approach is, “how can I help?”

Want to grow with us?

Contact our director of franchise development. Jami Bond jbond@goodcentssubs.com Phone: 785-764-0291 WWW.FRANCHISEJOURNAL.COM | APRIL 2020

Come Meet Us at The Great American Franchise Expo in Houston and Dallas!

Your Home Thoughtfully Clean The Green Clean Customers Need At ecomaids, we help franchisees tap into the vast supply of consumers who want eco-friendly solutions for their home cleaning needs. Our safe, natural cleaning products, and our thorough 64-point checklist, help us shine brighter than anyone else in the industry.

Why Our Franchisees Love Our Spotless Opportunity

In House Financing

In House Marketing

Proud to offer $10,000 Discounts to Military Veterans, First Responders and ethnic minorities

Recurring Revenue

Available to qualified candidates

Corporate call center to close sales

Repeat customer business model

High-Demand for Green Business

Better for Planet Earth

We’re a Happinest Company

People want safe, natural products

Keep chemicals out of the environment

Franchise experts with 50 years of experience

To get more info on this eco opportunity, contact: 855-424-8683 or franchiseinformation@ecomaids.com

HISTORY

The Invention of the Happy Meal by Janice Charles, Consultant, The Franchise Consulting Company

ob Charles, Jr. graduated from the University of Arizona with a M.S. in Horticulture. Bob always loved the outdoors and plants in particular and most especially roses. While at the U of A he planted a test garden to evaluate the impact of certain desert diseases on the different varieties of roses. More specifically, he planted 3,000 roses of including hybrid teas, floribundas and climbing roses. The rose garden is still thriving in the park in Tucson. At the same time, he worked with the Arizona State prison system to establish a nursery to grow many of the plants needed for his highway project. The goal was to plant material to

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improve safety at dangerous sections of the highways. In 1963, Bob and his wife Judy moved to Ardsley, NY. Bob worked there for Geigy Agricultural Chemicals for two years. He was to do research evaluating new chemical products and their activity as herbicides and insecticides. While there they decided that they would really like to move back west to Boulder and raise their family there. Judy's parents were neighbors of Ray Kroc and they had invited Ray over to tell them about McDonald's. At the conclusion of the meeting Alva said that is it we are moving to Boulder and we are going to get a McDonald's. Both of Judy's parents had attended the University of

Colorado and jumped at the chance to get back to Boulder. The restaurant in Boulder opened in April 1958. Upon Alva’s passing, Helen Meyer, Judy’s Mom, Owned and Operated the McDonald’s on 28th St on her own. She needed help to run the McDonald’s with plans to build additional locations. Enter Bob and Judy Charles to Boulder, CO to start running the 28th St. location. Bob went through all of the McDonald’s training, including Hamburger University, to learn how to run a McDonald’s. A few years later, Helen opened another location on Baseline Rd. in Boulder. It was one evening when Judy took their 2 boys to the

“RONALD MCDONALD SAYS IT’S FUN TO GO TO MCDONALD’S, BUT IT’S NOT FUN TO GO WITH THE KIDS AS THEY JUST WANT TO RUN AROUND.” — Judy Charles

Baseline location. The boys were not interested in eating, they were more interested in running around. Judy came home and told Bob – “Ronald McDonald says it’s fun to go to McDonald’s, but it’s not fun to go with the kids as they just want to run around.” Judy “suggested” Bob to do something about it – so McDonald’s would be fun, like the advertising stated. Bob called Dale Pond with the local advertising agency in Denver. He said there was a problem and they needed to do something about it. Dale suggested that he should get a package of some kind to put a Hamburger and French fry into to keep kids entertained. After Dale’s recommendation, Bob went to the local Coke Distributor and asked for a carboard box. They just

happened to have a punchout paper car. Bob put a Hamburger, French Fries and a drink in the car along with a 2-cent paper toy. The toy was a punch out toy - f rom their National McDonald’s supplier. They didn’t know what to call it, so they called it a “Meal in a Box”. It was later called the “Happy Meal” because it made kids happy. It made his wife happy as well. The Happy Meal was born. Bob sold the Happy Meal in his store for a few months, then told McDonald’s Corporate about the success. In 1978, McDonald’s asked a Marketing Manager, Dick Brams, in St. Louis, to put it in the entire market to test. Needless to say, it went crazy. McDonald’s added the Happy Meal in Chicago, IL, and added

it to national TV. The first toy was a Disney toy with one of their movie tie-ins.

THE HAPPY MEAL BECAME A NATIONAL PRODUCT. Over time, many have played a role in the development of the McDonald’s Happy Meal. Full credit goes to Bob and Judy Charles along with Dale Pond. Bob and Judy live in Boulder, CO along with their three children and 6 grandchildren. CONTACT JANICE If you would like advice on selecting the best franchise for you, please feel free to contact me. Janice Charles 303-319-5186. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

HONORED

TO HAVE THE

highest

WOMEN consultants

WE DO...

percent active OF

in the

INDUSTRY

and we're proud!

ABOUT US

Fire Grilled Fresh Teriyaki Madness by Alison Satriana, Director of Development, Teriyaki Madness First came the customers, then came the franchisees! As more and more customers fall in love with the delicious food (that happens to be healthy) at Teriyaki Madness (our fans call us TMAD), more and more franchisees are taking notice. The brand has enjoyed positive same store sales growth of 4-12%* for the past four years. Given that, it’s not surprising that the number of shops grew by 41% in 2019, and is on pace to grow by another 50% in 2020. What makes this possible? It’s actually pretty simple. In the words of COO Erin Hicks “We’re successful because

we focus on the right things: franchisee profitability, taking advantage of our segment within franchising, and building a team that is capable of and excited to create sustainable growth for years to come. We’re all here for the same reason – to help each person achieve his or her American dream.” Building franchise profitability is a two-step process. The first step is to build high sales (TMAD’s Average Unit Volume is $1,134,507*) and keep the initial investment range reasonable (TMAD’s ranges from $313,500$653,860*). But that’s only half

the story. In 2019, Teriyaki Madness leveraged its growth to create new contracts with Pepsi and Sysco that dramatically reduced operating costs. New packaging and a refined menu have boosted profits, too. New processes and technology have helped franchisees manage their businesses more efficiently and closely. And, in today’s challenging labor market, Teriyaki Madness has been relentless in keeping their operations simple enough to

“WE’RE SUCCESSFUL BECAUSE WE FOCUS ON THE RIGHT THINGS: FRANCHISEE PROFITABILITY, TAKING ADVANTAGE OF OUR SEGMENT WITHIN FRANCHISING, AND BUILDING A TEAM THAT IS CAPABLE OF AND EXCITED TO CREATE SUSTAINABLE GROWTH FOR YEARS TO COME.” — COO Erin Hicks

CHICKEN TERIYAKI

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ORANGE CHICKEN

SALMON TERIYAKI

“I’M SO PROUD TO WORK WITH THIS TEAM. OUR LEADERS HAVE BEEN INVOLVED IN FRANCHISES AT EVERY STAGE OF THE BUSINESS LIFECYCLE. EACH OF US IS EXCITED TO PARTNER WITH FRANCHISEES TO BUILD SUCCESS.” — COO Erin Hicks

allow keep staffing needs low (even during the lunch rush). They’re in the right place at the right time. Fast-casual, healthy and Asian are three of the fastest growing segments in restaurant franchising…Teriyaki Madness checks all three boxes. Added to that, with a new app, loyalty program, and catering program, Teriyaki Madness is giving customers even more ways to enjoy their delicious food. Guests who use the loyalty app tend to spend 19.4% more than nonloyalty guests, proving that their loyal fans are truly “mad” about this food. In 2017, Teriyaki Madness created a three-year plan to

SPICY TOFU TERIYAKI

EDAMAME

invest in developing systems and recruiting leaders who have deep experience in marketing, training, communications and supply chain. In the words of COO Erin Hicks “I’m so proud to work with this team. Our leaders have been involved in franchises at every stage of the business lifecycle. Each of us is excited to partner with franchisees to build success. It’s a collaborative process, and our team embraces that. We have the advantage of being small and nimble, with people who are both committed to our vision and also have the experience to help us achieve what we’ve set out to do.” 2019 was a banner year for

Teriyaki Madness, and the company is on track for 2020 to be even better. “From the bottom up, we’re pursuing greatness,” says Hicks. “The recognition that we have one of the best margins in restaurant franchising has led to tremendous interest from franchise candidates. By the end of 2020, we expect to have 100+ shops open, with more to come. All of this lays the groundwork for even more growth in our pursuit of becoming one of the next great international franchise brands with all of the benefits of brand awareness for our franchisees.” * Refer to the 2019 Franchise Disclosure Document

STEAK TERIYAKI

YAKISOBA STYLE WWW.FRANCHISEJOURNAL.COM | APRIL 2020

B2B RESALE OPPORTUNITIES FROM COAST-TO-COAST!

“Hit the ground running” by acquiring an established business through our Allegra Resale Program that connects retiring owners with interested entrepreneurs. Available locations in the U.S. and Canada include: • Seattle, WA • New York, NY

Allegra Centers provide graphic design, printing, mailing, promotional products and marketing services needed by virtually every local business and institution. As an owner, you’ll benefit from the unsurpassed network support provided by Alliance Franchise Brands – a world leader in marketing and visual communications. Among the other advantages of acquiring an Allegra Center:

• Boston, MA • Phoenix, AZ

✓ Proven, 40+ year franchise concept ✓ Excellent profit potential ✓ Monday-Friday, 8:30a-5:00p business hours ✓ Industry-leading programs

• Miami, FL • Stuart, FL • East Greenwich RI • Ontario, Canada • British Columbia, Canada • Where you want to purchase an up and running business!

Explore your Allegra Center ownership opportunity. Contact us today. 866.433.4131 | allegrafranchise.com © 2019 Alliance Franchise Brands LLC. All Rights Reserved. Alliance Franchise Brands LLC is the parent company of Allegra Network LLC and KK Printing Canada ULC. This advertisement is not an offering. An offering can only be made by a disclosure document filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MN F-4115

EXPERT ADVICE

Aiming for a Successful Discovery Day, Here are Some Tips by Ann Kohler, Consultant, The Franchise Consulting Company

o, you’ve spent weeks on calls and webinars with a franchise brand. You’ve read the Franchise Disclosure Document and had your validation calls with other franchisees. And now the franchisor has invited you to Discovery Day. Discovery Day is the culmination of your education on the franchise and it is the final step in your due diligence. It is essentially a 24-hour period in which you will meet with the franchise’s executives and the corporate team,

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experience what the brand does if you haven’t already done so (i.e., visit the brickand-mortar location, sample the food, get a massage, take a fitness class) and meet other potential franchisees. And at the end of the Discovery Day you should have a complete understanding of the opportunity and whether or not it is the right fit for you to meet your personal and financial goals. The first, and most important thing to remember, Discovery Day is the final interview. Yes, interview. From the first

introductory call with the franchise development team through the end of Discovery Day, the franchise development team, and now the executive team, will be analyzing you, your questions, your behavior, to see if you’re a good match to join their brand. Just because you’re financially qualified doesn’t mean that you’re a shoe-in to be awarded a franchise. Franchisors consider a number of factors prior to awarding a franchise and these can include passion for the brand, willingness to follow the brand’s systems, willingness to work hard, a personality that will represent the values and traits of the brand, be a good corporate partner and has managerial aptitude and good business skills. At the end of Discovery Day, the executive team and the franchise development team will meet and decide to whom among the potential franchisees they will award a franchise. If you want it to be you read on! As I mentioned at the start, by the time you get to Discovery Day you should have completed essentially all of the due diligence you will need to make a decision to invest in the franchise brand.

SO, HERE ARE SOME SIMPLE DOES AND DON’TS FOR A SUCCESSFUL DISCOVERY DAY.

• Show up in business attire, unless they indicate differently. • Bring your spouse, significant other and/ or partner. Anyone that’s going to be involved in the business should have a good understanding of the opportunity. And in fact, I’d recommend that they should be involved from the very start of the process. • Be on time. Don’t walk out on presentations. Don’t leave early unless you are not interested in the brand. • Bring some energy!!! Be engaged in the process and the people. • Many franchisors host a dinner for the potential franchisees the night before the formal presentations. This is NOT a social event. They are assessing you. Are you engaging and personable with the other potential franchisees and the corporate team? They will take note of your interaction with the wait staff. Are you polite or arrogant to them? Do you drink too much? • Bring a list of thoughtful

•

• •

•

questions. And don’t be shy. That said, now is not the time to ask a hundred questions, you‘ve been engaged with the development team for weeks so you’ve had every opportunity to ask a ton of questions. If you know the executives you will be meeting review their background and experiences prior the start of the day so that you can be fully engaged and ask pertinent questions. Be prepared to listen and learn. Leave your cell phone in the hotel room or the car. Nothing is more unprofessional, rude and distracting that someone on a cell phone or scrolling through their messages. You can bet that the executive and franchise development teams will note that you’ve more interest in your phone than in the brand and the opportunity. Review the corporate team, the inf rastructure and facilities. Do they have what you’ll need to conduct your business?

AT THE END OF THE DISCOVERY DAY YOU SHOULD HAVE A COMPLETE UNDERSTANDING OF THE OPPORTUNITY AND WHETHER OR NOT IT IS THE RIGHT FIT FOR YOU TO MEET YOUR PERSONAL AND FINANCIAL GOALS. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

• In meeting with the executive and corporate teams, does the organization’s personality mesh with yours and are they people with whom you can work. Franchise agreements are typically for 7 or 10-years so you

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want a team with whom you will enjoy working. • You will be meeting with the corporate team — people from operations, technical support, marketing, training. You will need these people if you become a franchisee. Take this opportunity to engage with them so you have a jump start on a great working relationship. • Use breaks to network not only with the executive and corporate teams but also the other potential franchisees as they will comprise an important part of your network should you, and they, become franchisees. • If the franchisor extends

you the offer of a territory and to join the brand while still at the Discovery Day, say thanks but let them you need to go home, review everything you learned while at Discovery Day and discuss the opportunity with your spouse or partner. This is a big, life changing decision and one that should not be made impulsively. Quality franchisors will give you several days to think about the offer before they require a decision and your franchise fee. ABOUT THE AUTHOR Ann Kohler is a Consultant at The Franchise Consulting Company ann@ thefranchiseconsultingcompany.com 914-346-7414

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ABOUT US

Xpresso Delight Coffee The World's Leading Coffee Service by Joshua Kovacs, CEO, Oakscale

In a day and age where tech reigns supreme, food and beverage concepts can no longer simply offer the best tasting burger, rice bowl, or burrito to attract customers. Increasingly, customers expect far more. From the ability to get food and drinks where they work and live to demanding fresh and transparent sourcing, America’s evolving eating habits are forcing F&B businesses to innovate. A new report from Label Insight and the Food Marketing Institute (FMI) revealed that shoppers are increasingly demanding transparency and a closer connection to their food — so much so that 75% say they'll switch to a brand that provides more in-depth product information beyond what's provided on the physical label. Nigell Lee CEO of Xpresso Delight, a NYC Based Coffee Service company, understands that modern Food and Beverage companies need to think more like logistics companies if they are going to give customers what they want at scale. “We have succeeded in bringing the third wave of coffee to the workplace by

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providing gourmet coffee to offices that has only been possible through a transparent and sophisticated supply chain.” Says Nigell Xpresso Delight is the world's largest coffee service franchise with over 200 franchises in Australia, New Zealand, and the United States and provides coffee service to over 1000 offices every day. “We found that the only way to set yourself apart from other coffee companies is through providing the freshest possible experience directly where customers are… in the office,” says Nigell. To meet consumer demands for quality and transparency, Xpresso Delight built out a sophisticated supply chain

that sources beans from Brazil, Papua New Guinea, and Columbia,roasts it in the United States, and ships directly to offices within a week of roasting. They supply offices with top-of-the-line automated espresso machines that grind their bean blend and froth milk at the push of a button, dubbed “automated cafes,” and provide a weekly cleaning service to ensure quality. All for a simple percup-rate to offices, making it a seamless and straightforward process for offices to upgrade their coffee. Xpresso Delight capitalizes on the dynamic market shift toward companies providing better amenities for employees and green

initiatives — it’s also benefiting from an emerging trend in American coffee consumption. Millennials, the generation taking over the majority of the workforce, are driving the move away from typical drip coffee toward espresso-based drinks. Most restaurants and cafes, even donut shops, now offer espresso drinks to satisfy the demand. Xpresso Delight has expanded by partnering with sophisticated multi-unit franchisees to bring their coffee service offering to the top 50 cities in America. In the past 14 months they have brought on 25 franchise units many of which are exclusive franchise partners with the rights to 3-5 franchise units.

Here’s what the brand has established in the U.S. market that is spurring the growth: 1. Swiss-Manufactured Automatic Espresso Machines: Xpresso Delight provide offices with a top of the line fully automatic espresso machines allowing office employees to make milk-based espresso drinks like lattes and cappuccinos right in the office with one touch of a button. 2. Seamless Supply Chain: Xpresso Delight provides offices with a proprietary blend of 100% Arabica beans that was formulated to taste great both with milk or on its own. The beans are roasted fresh, then shipped directly from the roaster to the clients’ offices. Franchisees save time and money on warehousing and distribution, and clients get the freshest coffee possible. If you’re not a coffee aficionado, it is widely agreed upon that coffee brewed from beans that were just roasted yield the best flavor and quality. Because most of Xpresso Delight’s competitors are distributors, the quality of their offering cannot match. 3. Pay-Per-Cup Model: Xpresso Delight innovated to create a pricing model

commensurate with the American culture’s proclivity to subscription based services. People no longer want to make purchasing decisions, they’d rather pay a subscription fee for a monthly service, everything from streaming entertainment to razors and clothing. Similarly, rather than locking companies into a long term lease of their machine, or simply charging for the actual coffee, Xpresso Delight charges clients on a per cup basis. If the office drinks 1,000 cups of coffee in a month, they get charged for exactly that number through a monthly invoice. Centralized billing provided by the franchisor makes this easy for franchisees to manage. To be the best in your F&B category, you must adapt to the ever changing technological advances in society, and you must innovate. We are the only office coffee service franchise in America, and we’re certainly not devoid of competition in our space, but for a franchisee looking for a unique category of franchise that is the leader in innovation in its industry, there’s no better place to start than Xpresso Delight. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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COVER STORY

ALONE TOGETHER Ordering

DELIVERY BY NICK NEONAKIS

he backdrop against which we write this article is sobering. Just a few weeks ago, restaurants were full of laughter and families eating out, 1st dates and anniversaries. One of the economic drivers of the global economy eating out is a pastime, ritual and everyday occurrence.

Today, the restaurants are closed. The laughter has faded and delivery is the new norm. The human race is asking when will this end. There is no real answer. More than 300,000 people across the globe have now come down with the COVID-19 virus. It has brought life around the world to a standstill. In our lifetime we have never seen anything approaching the magnitude of this event. Also known as the Coronavirus, due to the crown like spikes on its surface, the virus, first reported in China, has swept across Asia and now has sparked outbreaks in Europe and the United States. Nearly 312,000 cases of the COVID-19 virus have

APRIL 2020 | WWW.FRANCHISEJOURNAL.COM

been confirmed worldwide with more than 13,400 deaths as of March 22, according to Johns Hopkins University. The United States has more than 26,000 confirmed cases with more than 340 deaths. Franchised food establishments account for almost 50% of the total financial output of the entire franchise category. With almost 200,000 Quick Serve Restaurants or QSR’s in the space, the dynamic innovation of the USA has lead the nation in creativity when it comes to food.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

DELIVERY SALES COULD RISE AN ANNUAL AVERAGE OF MORE THAN 20% TO $365 BILLION WORLDWIDE BY 2030, FROM $35 BILLION. The restaurant industry has hit a wall but the propensity for Americans to order delivery has increased dramatically over the years. Coupled with increased technological advancements in marketing, ordering and delivery through organizations like Uber Eats, Postmates, Door Dash, Grubhub and others the range of options for consumers is vast. Restaurant owners are on the front line against the pandemic and many are desperately fighting for survival of their business and to retain as many of their employees as they can.

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Ordering delivery has become more than just an affordable luxury or a way to save time when coming home, during these times it has become a patriotic endeavor that you can do to help our economy. A few statistics that are relevant for QSR entrepreneurs when thinking about how to pivot their business to confront these times are below:

TRENDS

Digital channel sales are on pace to reach 30% of total sales for US restaurants by 2025.

60%

‌of U.S. consumers order delivery or takeout once a week.

34%

‌ f consumers o spend at least $50 per order when ordering food online.

20%

‌ f consumers say o they spend more on off-premise orders compared to a regular dine-in experience.

Digital ordering and delivery has grown 300% faster than dine-in traffic since 2014.

70%

‌o ‌ f consumers say they’d rather order directly from a restaurant, preferring that their money goes straight to the restaurant and not a third party. This makes the value of a native online ordering solution that much stronger for restaurants.

45%

‌ f consumers o say that offering mobile ordering or loyalty programs would encourage them to use online ordering services more often.

63%

‌ f consumers o agree that it is more convenient to get delivery than dining out with a family.

60%

‌ f restaurant o operators say that offering delivery has generated incremental sales.

ORDERS PLACED VIA SMARTPHONE AND MOBILE APPS WILL BECOME A $38 BILLION INDUSTRY IN 2020.

Meal Deliver - Monthly Sales October 2019 Share of Sales Uber Eats 20%

400

Sales indistinguishable from Uber rides before Aug '17.

Indexed U.S. Sales*

Same sales indistinguishable May-Aug '19.

300

Postmates 10% DoorDash 35%

200

Other

Eat24 (prior to Oct '17 acquisition)

100

Caviar Waitr Amazon Restaurants

Grubhub

2016

2017

2018

30%

2019

*Indexed to meal deliver Jan 2016 sales (=100)

RESTAURANT REVIEW STATISTICS

92% 77%

‌ f consumers read o restaurant reviews.

‌ refer peer p reviews versus critic reviews.

33%

‌ ould never eat w a restaurant with less than four stars.

RESTAURANT TECH STATISTICS

Over 80% of restaurants are turning to technology — like online ordering, reservation and inventory apps, and restaurant analytics — now more than ever to help them run their business successfully and efficiently.

41%

of restaurants use, or will soon use, ‌ andheld server tablets. h

68%

‌ f customers o agree that the use of server tablets improve the restaurant experience. Integrating your restaurant POS and reservations management system can boost your online reviews by 1/4 of a star and create 2% more return customers (who tend to spend 67% more on average). “We shall not fail or falter. We shall not weaken or tire. Neither the sudden shock of battle nor the long-drawn trials of vigilance and exertion will wear us down. Give us the tools and we will finish the job.” — Winston Churchill

Despite the rapid draw down the global economy and humanity has experienced over the past few days, it is the weeks and months ahead that will decide our future. To get to this place, today, every one of us is the culmination of thousands of generations who have come before us. Many of them knew great suffering, hardships and turmoil. However, every one of them lived through it. That’s an important point because you are the direct descendant of those people who had the strength to continue forward. So shall you and these dark days will soon be behind us. We have the tools and we will finish the job of ending this pandemic and getting back to our lives. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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ABOUT US

Making Healthy Taste Amazing by Siler Southerland, Project Manager Business Development, Village Juice Co. Healthy and delicious food is more than their passion, it’s their way of life. Lonnie Atkinson, one Village Juice Company’s founders says “we want to feel our best by nourishing our bodies with the highest quality ingredients. And we’re committed to sharing our healthy menu options with the world.” Village Juice Company was formed in 2014, first selling its cold-pressed juices out of a tent at the local farmers’ market. It has since grown to five full-service restaurant locations, each with

hen it comes to eating healthy, taking the time to find food that tastes good, but that is also good for you, is not always easy. However, when Village Juice Company was created, its founders set out to show everyone that eating well and nourishing your body can indeed be simple and easy. Moreover, healthy eating should taste just as good as it makes you feel. That is why the team at Village Juice Company pours their heart into giving everyone the opportunity to grab a healthy bite that tastes amazing.

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a full, creative menu of fresh, scratch-made foods consisting of salads, smoothies, toasts, raw vegan snacks and desserts and many more delicious, healthy options. Lonnie had spent decades honing her craft at some of the country’s best restaurants. She has created an amazing array of delicious menu options that are ontrend for today’s discerning diner, and Village Juice Company is poised to takeoff nationally as franchisees embrace the opportunity to share their vision and deliver an amazing menu in their own communities.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

Village Juice Company enjoys broad appeal with consumers of all ages and each of its locations has seen customers who are making a choice to change the way they eat for the first time, or who have always enjoyed healthy eating and are ecstatic to find a local option. The restaurant has validated its appeal with younger demographics as well through its success on two prestigious, food-forward thinking campuses: Wake Forest University and Elon University. Most recently, Village Juice Company has progressed into other innovative eateries such as

the Optimist Food Hall in Charlotte, North Carolina. There is nothing that Village Juice Company cannot do when it comes to the everchanging world of healthy eating. Atkinson explains that the atmosphere within Village Juice Company, was built on core values that continue today: honesty, positivity, community, and serving real healthy food. Village Juice Co. connects with their local communities and believes that the food a community eats really matters. Food brings communities together, and it is their mission to create

strong communities within Village Juice Company spaces to inspire creativity and optimism. Their vision? To nourish people with honest food. Village Juice Company has big plans to grow the brand and reach more communities with the delicious food they serve. Nathan Atkinson, President and CEO of Village Juice Company and Lonnie’s husband, believes “There are hundreds of communities that are completely lacking a healthy, delicious option. There are hundreds more that may have a salad spot, or a juice bar, but we don’t think there are other concepts that are like ours that offer so much under one roof.” Nathan and Lonnie have four daughters, so it is important to them that families have nutritious options. “Feeding a family of six healthy options, that everyone can agree on can be difficult. That’s one of the reasons we opened Village Juice Company: so that everyone can find something healthy on the menu to enjoy.”

THERE IS NOTHING THAT VILLAGE JUICE COMPANY CANNOT DO WHEN IT COMES TO THE EVERCHANGING WORLD OF HEALTHY EATING. 72

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LET'S CHANGE THE WAY WE EAT, LET'S CHANGE THE WAY WE LIVE, AND LET'S CHANGE THE WAY WE TREAT EACH OTHER. — Tupac Shakur

Want to be a part of their village? Connect with Village Juice Co. on social media platforms Instagram @villagejuice or on Facebook at Village Juice Co. They have stunning photos of their delicious menu. You can also learn more about their other services such as catering and online ordering or learn more about the company at villagejuicecompany.com. To learn more about how you can create your own village in your local community as they expand nationwide, check them out at https://www. villagejuicecompany.com/franchise.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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Feed Your Body the Food of Life Vitality Bowls by Thea Bakkar, PR Director, Vitality Bowls others faced with the same worry of an allergy-friendly, healthy food environment to nourish themselves and their loved ones, Roy and Tara created Vitality Bowls. Today, the company is based in Danville, California and has become a superfood pioneer with locations stationed coast to coast. Vitality Bowls offers the widest selection of superfoods, specializing in açaí bowls, a thick smoothie-like blend of the açaí berry native to South America. The bowls are topped

hen Roy and Tara Gilad sought to solve a concern that hit close to home in 2011, the end result would ultimately be greater than what they could have imagined. At the time, the husband and wife duo realized that many nearby restaurants failed to offer safe eating environments for their daughter who has severe food allergies. In an effort to provide

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with fresh fruit, organic granola and other superfood toppings including a list of organic options that are rarely found elsewhere. Additional antioxidant-rich menu items include salads, panini, fresh juice and smoothies. All items on the Vitality Bowls menu are made to order for each customer and prepared carefully to avoid cross contact of common food allergens. In July of 2019, Vitality Bowls recorded that is had sold more than 5 million açaí bowls to

VITALITY BOWLS OFFERS THE WIDEST SELECTION OF SUPERFOODS, SPECIALIZING IN AÇAÍ BOWLS, A THICK SMOOTHIE-LIKE BLEND OF THE AÇAÍ BERRY NATIVE TO SOUTH AMERICA. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

THE MISSION OF VITALITY BOWLS IS TO BRING HEALTH AND WELLNESS TO EVERY COMMUNITY ACROSS THE COUNTRY THROUGH FRESH, HIGH-QUALITY SUPERFOODS, PARTNERING WITH HEALTH-FOCUSED ENTREPRENEURS TO ACHIEVE IT. fans across the nation since the company’s inception and reached sales of 1 million bowls in the year alone. As business owners, Roy and Tara Gilad combine a collection of skills that make the pair uniquely qualified to lead Vitality Bowls alongside each other. Prior to founding Vitality Bowls, Roy honed his business leadership capabilities as the senior Vice President at K.A.D. Alliance, Inc., a tax, real estate investment and accounting firm where he specialized in investment, asset and system engagements for clients. Tara is a serial entrepreneur with a background in business

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ownership, retail and finance. With her developed business acumen, Tara is involved in all aspects of the business, specializing in franchise development. Since beginning its franchising efforts in 2014, Vitality Bowls has experienced tremendous growth. The superfood pioneer quadrupled in size with more than 141 locations currently open or in development throughout the United States. The Vitality Bowls franchise opportunity offers unique facets to prospective franchise members, such as simplistic internal operations, broad growth availability and the

$500 million açaí market it was built upon, catering to consumers with high demand. The mission of Vitality Bowls is to bring health and wellness to every community across the country through fresh, high-quality superfoods, partnering with healthfocused entrepreneurs to achieve it. The company is looking to grow by 25 units with 15 additional openings by the end of 2020 and with cafés established in nearly 20 states across the U.S., the momentum is only just beginning. In 2019, Vitality Bowls was included in Franchise Times’ 200+ list recognizing the 500

largest franchises in the industry and Inc. Magazine’s 500/5000 list for the nation’s fastest growing private companies. Also named one of Entrepreneur’s top food franchises, Vitality Bowls aims to redefine the fastcasual healthy food restaurant field at its locations across the country.

SINCE BEGINNING ITS FRANCHISING EFFORTS IN 2014, VITALITY BOWLS HAS EXPERIENCED TREMENDOUS GROWTH.

For more information about Vitality Bowls and its menu items, please visit: www.vitalitybowls.com. For more information about the Vitality Bowls franchise opportunity, visit http://franchise.vitalitybowls.com.

WWW.FRANCHISEJOURNAL.COM | APRIL 2020

REAL FOOD OPPORTUNITY

Enrich Lives

with Clean, Nourishing and Delicious Food Invest in the New Standard in Fast Food

Nearly a dozen years ago, two friends overhauled their careers and made the conscious-yet-risky leap into entrepreneurism. Anthony Pigliacampo, a design engineer, was thriving in his 9-5 job. But, he saw an opportunity to solve a problem – not being able to find restaurants that were both healthy and delicious – and he knew he could make a difference by letting his professional skills and personal passions collide. Being an uber athlete, Pigliacampo was always on the lookout for health-conscious, affordable food options he could get on-the-go. Much to his disappointment, he never found one that checked all his boxes and met his expectations. Pigliacampo decided enough was enough. He partnered with an old high

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school friend, Rob McColgan – both determined to disrupt the restaurant space by making real food the new standard in fast food. This mission drove Pigliacampo toward business ownership and co-founding Modern Market Eatery, a fast casual concept with madeto-order scratch soups, salads, grain bowls, sandwiches, pizzas and carved plates. Fast forward to 2020 and Pigliacampo has turned Modern Market Eatery into an award-winning 30-unit restaurant operation spanning across five markets. Guests love the elevated experience and freshly made food served at a reasonable price. Plus,

Modern Market Eatery was ahead of the curve when it was founded – everything is clean and made from scratch, resulting in guests’ dietary preferences being easily accommodated and customized. Logically, the next step for the modern, health-focused brand is to franchise the concept so people across the country can more easily enjoy clean, convenient and delicious food. Offering the Franchise Opportunity As fate would have it, Pigliacampo had a franchising expert living right up the road from him: Renee Israel, cofounder of Doc Popcorn and

MODERN MARKET IS BUILT ON THE IDEA THAT THE CREATIVITY AND SCRATCH COOKING TECHNIQUES USED IN FINE DINING CAN BE REENGINEERED INTO A FAST CASUAL FORMAT.

advisor to other emerging franchise concepts. Israel was the perfect fit to help Modern Market Eatery lever a franchise strategy to grow. Like Pigliacampo, Israel considers herself a healthcentric athlete and someone who is unshakably committed to taking care of her body and what food goes in it. When the founders asked her to join the Modern Market team, Israel jumped at the opportunity. It’s not because she needed to dive into a new business endeavor, but rather, because Modern Market Eatery and its purpose is one that parallels Israel’s own lifestyle and passions. Israel saw the impact Modern Market Eatery had on her community and the need for an elevated bakery café concept in cities around the country. Creating Doc Popcorn from scratch as a healthy snacking alternative in nearly 100 high-traffic venues before selling the company, Israel knew what needed to be done to kickstart the franchise program.

What Sets Modern Market Eatery Apart The efficiency behind the scenes is what sets Modern Market Eatery apart from its competitors. Modern Market is built on the idea that the creativity and scratch cooking techniques used in fine dining can be reengineered into a fast casual format. From sophisticated technology integrations, to a kitchen line that utilizes every inch, Modern Market Eatery has streamlined efficiency over its decade in business. The result? The average time it takes to serve an order is under six minutes. Additionally, Modern Market Eatery serves up a proprietary protein program with grass fed beef, all natural chicken, and sustainable salmon. All are cooked in house using highly refined techniques that yield a superior finished product compared to anything else in fast casual. Being founded by an engineer has led Modern Market to embrace technology. Like the food served in every restaurant, the new Modern Market website has been completely built from scratch. The proprietary digital platform enables guests to seamlessly place and customize orders, while also integrating directly

with all third party delivery providers. Most importantly, the recently rebuilt website enables franchisees to easily absorb orders from digital channels, including its own loyalty app, as easily as they could if the order took place at the cashier in a restaurant. This is critical since 50 percent of Modern Market’s orders begin online. Ideal Franchise Partners Modern Market is an ideal investment for experienced multi-unit operators and restaurant veterans looking for an efficient, healthy concept to add to their brand portfolio. The ideal candidate is aligned with the brand's culture, respects its scratch-made approaches and is interested in operating at least three restaurants. Anyone interested in learning more is encouraged to reach out to Chief Franchise Officer Renee Israel at renee@modernmarket.com or go to modernmarket.com/ franchise for more information on how to join this on-trend eatery in serving the modern diner and operator.

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EXPERT ADVICE

Six Great Reasons

Why Franchise Companies Want Veterans by Dave Cooley, Consultant, The Franchise Consulting Company

any franchise companies offer discounts and other incentives to attract new franchisees who have military experience. Do they do so in an effort to thank Veterans for their service to our nation? Well, yes, indeed. But that’s not the only reason. Franchise companies understand that historically Veterans have proven to simply be better franchisees. Franchisors know that Veterans are a “safer bet,” so to speak, than nonveteran new franchisees because, by and large, Veterans share the following six characteristics:

1. VETERANS ARE LEADERS! Virtually every member of the military, regardless of which branch, the Army, Navy, Marines, Air Force, Coast Guard, National Guard or Reserve, have had the responsibility to lead others. From the retiring colonel who commanded hundreds of people to a “two stripper” who supervised one or two others, just about every veteran has led others. Veteran franchisees are accustomed to leading and therefore do a better job supervising and training their employees. More, veteran franchisees are more likely to volunteer to mentor other franchisees and to serve on the franchisors’ franchisee advisory councils. 2. VETERANS EMBRACE DIVERSITY. The vast majority of military units have members of every race and religion, as well as both male and female. Veterans “socialized” in very diverse environments and bring that acceptance and willingness to work with others who are different from themselves with them when they become franchisees. Diversity is becoming more and more important to franchise companies in every industry and attracting not only diverse new franchisees, but also new franchisees for whom working with others who are of different races, religions, sexes, or even sexual orientations, is the “norm” is very important to franchisors.

THE MOTTO OF FRANCHISING IS “BE IN BUSINESS FOR YOURSELF, BUT NOT BY YOURSELF.” 86

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3. VETERANS ARE TEAM PLAYERS. From my experience in the military, at every training school or program, the rule was, “Cooperate and graduate!” What does that rule mean? To achieve success in the military you have to be a member of a team that unites and helps each other to achieve success. Most franchise companies refer to their franchisees as “family.” But what they really mean is that franchises are teams. The franchisors’ staff and all of the franchisees join together to achieve success by helping each other and encouraging each other. The motto of franchising is “be in business for yourself, but not by yourself.” Most people think the “not by yourself” part only means the assistance franchisees receive from the franchisors’ staff … but that’s only half of the “not by yourself” part of the motto. The other half is the support franchisees receive from each other. It’s not unusual for a franchisee with a problem or question to reach out to a fellow franchisee for assistance … sort of “cooperate and graduate,” huh? Working as a team comes naturally for Veterans! 4. VETERANS PERFORM UNDER PRESSURE. Sure, not every veteran has fought in combat or had to deal with aircraft emergencies … but every single military member had to go through some sort of basic training. Conjure up an image of a drill sergeant chewing out a new recruit. That’s pressure! Every veteran has had to perform

in one form or another in a high-pressure environment. Veterans learned how to keep their cool and to “think on their feet” about how to achieve success despite great demands and pressure! Franchise companies want franchisees who can perform well under pressure. Opening a new store or establishing your business in a new territory are both filled with high pressure situations and franchisees who can perform well under pressure simply become more successful than those who cannot perform as well. 5. VETERANS ARE EDUCATED AND VERY ACCUSTOMED TO WORKING WITH TECHNOLOGY. Virtually every veteran has achieved at least high school graduation … that’s a basic requirement for every branch of the military. More, every military branch encourages continuing education and even provides opportunities for their soldiers, sailors, Marines and airmen to obtain college credits. In the

officer ranks of each service, it’s an unwritten rule that you must have a master’s degree to advance to the field grade ranks and just about every military base offers advanced degree programs through local universities. In addition, almost every single role in every branch of the military requires members to become very comfortable using technology. From using computer programs, to using automated targeting systems and aircraft flight systems, to using downloaded applications, Veterans have proven skills regarding technology. Franchise companies are embracing technology more and more and they need franchisees who are educated and accustomed to using technology. From using and teaching employees to use point-of-sale systems to using CRM (customer resource management) systems, technology is at the forefront of franchise systems. Veterans can handle tech! WWW.FRANCHISEJOURNAL.COM | APRIL 2020

VETERANS, IF YOU WANT A BUSINESS … FRANCHISE COMPANIES WANT YOU. 6. VETERANS ARE DRUG FREE AND HEALTHY. Veterans, particularly those with recent military service, are by and large more healthy and drug free than the average population in our society. They come from environments in which drug use is not only forbidden but punishable by the Uniform Code of Military Justice. That’s not to say that the military is totally free of drug use. It’s not. But the military is vastly a drug-free environment. Also, members of any military

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branch receive free medical treatment and prescriptions and they are required to have yearly physicals. Of course, many Veterans have suffered physical and mental damage due to combat or accidents, but the vast majority of Veterans, particularly those who have recently left the service or retired, are in good health. Any franchise company would want their new franchisees to be in good health and drug free! If you are a military veteran

and you’ve been considering investing in a business of your own, please realize that franchise companies want you! You bring a lot of skills, attitudes, experience and ability that f ranchise companies highly value. ABOUT THE AUTHOR Dave Cooley is a Franchise Consultant with The Franchise Consulting Company. Dave has over 20 years of executive experience in franchising and consulting. Previously he was a Lt. Col in the USAF. Contact Dave at dave@ thefranchiseconsultingcompany.com

KEEPING YOU SAFE

This is No Time for Second Best by Rhonda Sanderson, Founder of Sanderson & Associates

acksonville, Florida based Paul Davis, a leading disaster and restoration franchise for residential and commercial properties, has been named a Best Buy in franchising by Franchise Times as part of the publication’s annual Zor Awards program designed to recognize brands in 10 of the industry’s most exciting and accessible categories. Designed to answer the question, “What’s the best franchise to buy?”, the Zor Awards is an industry-

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exclusive award program appearing in the March 2020 issue of Franchise Times. With a goal of introducing prospective franchisees to a few favored categories based on their individual preferences and style, the Zor Awards aids individuals exploring franchising by showing them how to select a franchise using an astute business mindset. The award reflects the need for disaster and recovery mitigation in these uncertain times. As the company expresses gratitude for this

PAUL DAVIS IS NAMED ONE OF THE TOP 10 FRANCHISES TO BUY IN 2020 BY FRANCHISE TIMES MAGAZINE AMIDST TAKING SIGNIFICANT STEPS IN CORONAVIRUS DISEASE (COVID-19) RESPONSE

PROPERTY MANAGERS AND EMPLOYERS ARE PROMISING THEIR TENANTS AND EMPLOYEES DEEP CLEANING.

prestigious award it also has taken proactive steps to respond to the Novel Coronavirus (COVID-19) outbreak. Paul Davis provides customers with deep cleaning and application of disinfectant for both residential and commercial properties. When coronavirus cases are found in areas served by Paul Davis, a full-time team of cleaning experts can respond, day or night, to properly apply disinfectant to materials and surfaces in community spaces as a critical step in safeguarding public health. In light of widespread community transmission of COVID-19, these services are important in heavy-traffic areas including residential and commercial properties. Paul Davis has seen a significant uptick in demand for both preemptive cleaning

and emergency disinfection and decontamination in the wake of the coronavirus outbreak. “Property managers and employers are promising their tenants and employees deep cleaning. We have the resources and advanced tools, such as electrostatic foggers and industrial strength virucides to provide peace of mind after a workspace or residence has been exposed,” said Art Dickerson, President

of Paul Davis’ Commercial Services division. The company continuously monitors and implements guidance from local, state and national health agencies, and uses qualified and government-approved chemicals designated under the United States Environmental Protection Agency (EPA) emerging viral pathogen policy. Safety comes first during Paul Davis biohazardous cleaning jobs such as treating COVID-19 and other substances and germs that pose a risk to human health or the environment. Unlike typical home cleaning service providers, Paul Davis professionals wear full protective apparels, including respirators and biohazard suits to perform disinfection and decontamination services.

About Paul Davis Restoration Since 1966 Paul Davis Restoration has restored residential and commercial properties damaged by fire, water, mold, storms and disasters. The experts at Paul Davis understand the complex process of recovering from property damage and provide complete services; helping to eliminate the hiring of multiple contractors. Paul Davis is a one-stop shop for disaster damage and restoration. with more than 300 independently owned franchises in the United States and Canada. The professionals at Paul Davis are certified in emergency restoration, reconstruction and remodeling. For more information, visit the company website at www.pauldavis.com WWW.FRANCHISEJOURNAL.COM | APRIL 2020

EXPERT ADVICE

It's a Marathon NOT a Sprint by Dave Jones, Consultant, The Franchise Consulting Company

It’s all about perspective and goals, right? To help those who are seriously contemplating taking action in 2020 and opening your franchise business, I thought sharing a few perspectives might be helpful with that decision-making process. I also could title this white paper “True Confessions of a former Corporate Executive”.

SO, YOU CANNOT AND SHOULD NOT IGNORE THESE FACTS AND PROJECTIONS: 1. On March 9th, the Dow Jones industrial

average declined 2,014 points, or 7.8%, its biggest single-day loss since October 2008. 2. Dow Jones Market Data figures going back to 1950 indicate that the Dow Jones Industrial

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Average tends to climb 75% of the time, with an average return of about 8.9% in the following year, when it finishes the previous year with a return of at least 20%. 3. The US unemployment rate decreased to 3.5 percent in February of 2020 from 3.6 percent in the previous month while markets had expected it to be unchanged at 3.6 percent 4. The 50 basis-point reduction, the largest cut since the 2008 financial crisis, took the central bank's benchmark fed funds rate to a range of 1 percent to 1.25 percent. True confessions of a former corporate soldier turned entrepreneur: In May of 2008, I took what was the boldest step in my professional career by leaving my Vice President position of a publicly traded company – crazy, right? So why did I decide to take that step?

There were a number of factors that lead to that decision, but the overriding reason was to strike a proper work-life balance. I knew that keeping my corporate job, or even taking a different corporate job, would likely not allow me that latitude. So, I left behind an attractive W-2 wage, stock options, a company pension plan, health care benefits and set out on my own – well not totally on my own. And looking back with the benefit of hindsight, that was the best professional and personal decision I have ever made.

SO WHY IS THAT? 1. I began my business in August of 2008, one

month before the announcement of the great recession (great timing eh)? 2. That recession caused me to make the decisions that I might not otherwise make – lean practices, aggressive selling and marketing, right sizing staff, etc. which all led to a leaner and more profitable business come January 2010. 3. When I began my business, my goals were simple: This is a Marathon not a Sprint! I wanted to aggressively grow my business and build an asset that I could sell in 6 – 8 years. I sold it in 7.5 years in May of 2016. 4. When I look back at the corporate income I left - versus the Owner Discretionary Profit (Equivalent to EBITDA for small business) that I took over nearly 8 years + the income from selling my business, it was a significantly better economic impact for me and my family. Perspective from another point of view To quote Executive Pastor Dave Clarke of Hope Church in Dubuque, IA Here are some lessons I’ve learned about goals: • You’ll never succeed without a plan. Just saying I want to run a ½ marathon won’t get me there. I need a specific plan with the individual runs I’m going to do each week. My spiritual life is similar. I want to read through the Bible in 2019, but I’ll never do it if I don’t have a plan of which sections to read and reflect on each day. • Some days you just don’t feel like it, but you get up and do it anyway. I’m convinced that half the battle is just showing up. If I can get

motivated enough to put on my running shoes and get out there, I usually find the motivation to finish the run. • Some days you make progress and some days it feels like you’re going backwards. I’ve had weeks where I feel really good and all my runs are pretty easy to complete. Then I have weeks where I’m not feeling it. Mentally it can be defeating, but the only way to succeed is to persevere and get out there again next week. So, let’s tie this back to opening your franchise business When times get tough, whether in your corporate job or as a Franchise business owner, there is no substitute for hard work, execution and staying true to your goals. In corporate, you get “plenty of help” staying focused, right? However, as a franchise business owner it is important to note that you are clearly not alone and on an island. My experiences from 2008 – 2016 taught me well that being part of a successful organization, with proven effective processes and programs, even in times of economic hardship will prepare you well to succeed – given that you execute well as the owner. ABOUT THE AUTHOR Dave has 26 years of Corporate experience with organizations like Proctor & Gamble and Matthews International, where he was Vice-President of Sales, Marketing and Product Development. With an undergraduate degree in Chemistry from Washington and Jefferson College, a Masters Degree in Business from Carnegie Mellon University, two US Patents in Merchandising and over 11 years of Franchise Industry experience, he is well prepared to assist with your evaluation of franchise business opportunities. Contact him at (412) 4009209 or email david@thefranchiseconsultingcompany.com.

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FRANCHISEJOURNAL.COM/SUBSCRIBE C O N TA C T U S I N F O @ F R A N C H I S E J O U R N A L . C O M

EXPERT ADVICE

The Entrepreneurial Blackhole: Maintaining a Healthy Work-Life Balance by Amanda Tokos, Consultant, The Franchise Consulting Company Being an entrepreneur is mostly amazing… but can be exhausting. Entrepreneurs take multitasking to a higher level and rarely stop when one task is completed or one business is successful. They often move onto a new idea before the last several are fully implemented, circling back at a later date without missing a beat. They are unfettered visionaries with unlimited amounts of ideas and not enough time in the day, the week, the year. They sometimes feel like they are invincible. Their friends, family, and peers either think they are super-heroes or perhaps a “little” crazy, or both; and they are often referred to

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as “serial entrepreneurs”. Sound familiar (wink wink)? Or do you know anyone like this? All kidding aside, the entrepreneur’s brain has an infinite work capacity. Most entrepreneurs do not work a normal 40-hour work-week. Their work is never done because it is not a job…it’s an integral part of who they are and what they do naturally. So, keeping a balance between work and life can be very difficult for entrepreneurs since the space in which they work has no boundaries. In fact, they often don’t realize they are losing that balance until things get out of control. Yet, no one intentionally sets outs to become stressed out. No one ever says, “I think I’m going to work so much that

I become ill and damage my personal relationships”. I have no doubt that many entrepreneurs and business owners do a terrific job maintaining a healthy worklife balance. Most of the time. So, what can one do to be proactive and avoid the gravitational pull of the “Entrepreneurial Blackhole”? FIRST Do an honest assessment of your current work-life balance. And then ask a couple people who know you well if they agree. Be open to their input. SECOND Identify the things that you are doing (or not doing) that contribute to a healthy worklife balance.

THIRD Identify the things that you are doing (or not doing) that negatively affect your worklife balance. For those who need some fresh ideas or just a reminder, here are some recommendations from one entrepreneur to another:

else can complete. Yes, you may need to spend some initial time training them, but your ROI will prove to be worthy (your time = money). Additionally, most people want to feel like they add value and will appreciate you asking and trusting them to help.

PRIORITIZE YOUR TIME. Focus on the tasks that only you can do and consider the tasks that, if not completed, will delay the process of something else. Of course, then factor in deadlines. Be aware of the things that are causing procrastination as it is often what you should do first. Stop over-committing. They will survive without you. You are amazing and a superhero, but you really can’t do everything.

LISTEN TO YOUR BODY. Make sure you are getting enough sleep and fueling your body with nutritious food. Get a massage. While mind over matter can push limits, eventually your body will put strains on you in an effort to say STOP or SLOW THE HECK DOWN. Too much strain can lead to illness, injuries and other health problems. What good are you if you are out of commission?

DELEGATE. There are many tasks you are probably doing that someone

PAY ATTENTION THOSE WHO MATTER MOST. Try to limit the amount of

time you are on the phone or working when they are spending time with you. Make sure you are spending quality time with them. Show up and be in the moment for special events. They will notice and it does matter. In the end, you are not going to regret not working more hours. MANAGE YOUR STRESS-LEVEL. Try turning your phone OFF (not on silent). For a couple hours. When you are awake. No, you won’t die. Now go get a massage. Yes, I know I said that already, but you really should because it reduces the stress hormone called Cortisol. Read a book. Write a poem. Journal. Meditate. Listen to music. Watch less news. Spend time outside. Exercise regularly. Set healthy boundaries with people…especially with those who deplete your energy or make you feel anxious, sad or angry. HAVE FUN. Take a mini-vacation. Take a long vacation. Go to a comedy. Buy that ticket to the concert or the game. Go dancing. Be silly and laugh at yourself. Do a fun project. THINK POSITIVE. Listen to inspiring stories from others. Spend time with people who lift you up and have great attitudes. Do something for your community or someone in need. Network with other entrepreneurs. Shut down the negative head talk when it creeps in. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

MAKES NECESSARY CHANGES. Remove obstacles or habits in your life that prevent you from having a balance or create an imbalance. Push the pause button on one or two…or three things. Maybe you need to let go of something. Sometimes holding onto the rope only hurts your hands. Or maybe you need to add something in your life. Change can occur

by simply saying “yes” or “no” to something, which means you could be just one decision away from changing your life. ABOUT THE AUTHOR Amanda Tokos has ten years of multiunit franchise experience as a former Massage Envy owner and operator, and currently advises on franchise options, career transition, and business development. Email us at info@ TheFranchiseConsultingCompany.com

MAINTAINING BALANCE IS DEFINITELY NOT A SCIENCE, BUT RATHER A CONSTANT WORK IN PROGRESS AS WE NAVIGATE THROUGH THIS JOURNEY CALLED LIFE.

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EXPERT ADVICE

Are You Passionate About The Work That You Do And The Life You Live? by Eddie Rodriguez, Consultant, The Franchise Consulting Company

Steve Jobs once said, “People with passion can change the World”.

n fact, Steve Jobs returned from a 12-year absence to Apple to find a Company that was running out of cash and close to bankruptcy, if you can believe that. So this is what he told his staff on day 1: “Apple is not about making boxes for people to get their jobs done, although we do that well. Apple is about something more. Its core value is that we believe that people with passion can change the World for the better” This is, in fact, the secret sauce to entrepreneurial success…’people with passion can change the World’. Jobs also gave a speech at Stanford where he said “You’ve got to find what you love”, The only way to do great work is to love what you do. If you haven’t found it, then keep looking. Do not settle. As with all matters of the heart, you know when you find it”. Passion is what should drive everyone in their pursuit of a more meaningful and successful life. It is everything. In these very unsettled times, with COVID-19 turning

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everyone’s World upside down, following your passion is the secret to overcoming the setbacks that we all face. It also builds resistance against all the naysayers who question your vision, your passion.

IF YOU ARE NOT PASSIONATE ABOUT YOUR WORK AND IDEAS, NOBODY ELSE WILL BE. It will inspire you and make you feel better about yourself. Successful entrepreneurs are extremely passionate. Not necessarily about their product or service, but about their mission, their life purpose. Steve Jobs was not passionate about hardware. He was passionate about building tools that would help people unleash their personal creativity. That was his mission. Howard Schultz of ‘Starbucks’ was very similar. It wasn’t about coffee to him, but it was about building a third place between work and home. He wanted to create an experience, that was his passion. Successful people like Steve Jobs and Howard Shultz can’t wait to get to work, every day of the week, and continue to think about their passion through the weekend. We need to ask ourselves, is this how we live our lives? Getting rich should not be

the motivation. In order for a business, franchise or otherwise, to succeed in the long term, you must have your heart and soul in it. Do you yearn to wake up early on Mondays because you can’t wait to get to work? The one quality that very successful entrepreneurs share is they don’t start a business just to make money, they start one because they are passionate about their mission. Perhaps, it’s to disrupt a category (AirBnB, Uber). Perhaps is to solve a problem they’ve faced (WatsApp). They want to make the World a better place. Some of the greatest

musicians of all time spend years before they release a song (i.e, Led Zeppelin’s “Stairway to Heaven”). This was not about money. It was about their unbridled passion. If you follow your passion, and make a difference you will feel successful on many levels. ABOUT THE AUTHOR Eddie is a highly experienced entrepreneur with over 30 years experience as a business owner/operator and franchise industry consultant. He has proven skills required to articulate and execute a successful business plan. Eddie has helped hundreds of executives identify new business ownership opportunities to pursue their dreams. info@ TheFranchiseConsultingCompany.com

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JANUARY

WE BELIEVE FOOD SHOULD BE DELICIOUS, ORGANIC AND INSPIRING.

It's not made, it's not manufactured, it's grown. To own your own grownTM and join our fast food revolution, please visit grown.org. Now awarding grownTM franchises!

NEW BUSINESS

From Executive To Entrepreneur

How Corporate Skills Transfer To Franchising by Faizun Kamal, Consultant, The Franchise Consulting Company

ears ago, careers were more of a straight-line path. Corporate America executives used to enjoy 30-year runs with the same company. They retired with pensions and gold watches. Well, those days are long gone. Career paths have turned into winding roads with unexpected twists and turns. In every industry, mid- to seniorlevel executives get laid off

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every couple of years. Many are ready for a change but are not sure what to do next. Franchise Consultants work with many corporate executives to help determine if franchising is a viable option. Moving from executive to entrepreneur can seem foreign and scary, but believe it or not, there is a lot of overlap. Here I highlight a few initial hurdles and explain why they may not be as daunting as you think.

SYSTEMS Every company has systems and processes and all employees – even highranked corporate executives – are expected to follow them. There is a chain of command and processes for submitting reports and expenses, as well as running meetings and completing projects. Business owners have the opposite experience – they are responsible for creating systems and processes for every aspect of their businesses. It’s exhilarating for some – not so much for others. A franchise can be the perfect compromise. You enjoy the independence, freedom, and profitability of entrepreneurship, but you get to take advantage of operating systems that have already been proven to work. RISKS Being an employee always seems like a safer option than being a business owner. But the truth is, there are risks on any job front. As an employee, the biggest risk is job security. Economic changes, industry disruptions, a difficult manager can all lead to job loss. Often, these factors are out of your control. Compared to a corporate position, franchise ownership lets you call the shots. It’s much less risky than a start-up business because a franchise already has a proven business model, significantly reducing your risk of failure.

TRUE, YOUR RISK IN ANY BUSINESS WILL NEVER BE ZERO, BUT IS ANYTHING IN LIFE TOTALLY RISK-FREE? SALES In corporate America, you don’t have to be in sales to sell. In fact, you have to sell your skills over and over again – at job interviews, as positions evolve, as companies merge, as new managers come in. Selling yourself is never-ending. Turns out, this skill transitions naturally to franchising because every franchise owner is ultimately a salesperson. You are responsible for marketing and generating new clients for your business – not merely focusing your time on what your business offers. As a franchise owner, you have to become comfortable with a variety of sales and businessgeneration techniques, including cold calling, referral

marketing, and networking. But you’re not in it alone. Robust franchises provide helpful training before you open the doors to your business. Franchising may be very different than corporate America, but they do have a lot in common. Either can lead you to financial freedom, it just depends on how you want to get there. ABOUT THE AUTHOR Faizun Kamal is a bestselling author, nationally renowned public speaker and career strategist. As a Franchise Coach. Faizun helps people make the transition from employee to entrepreneur. info@TheFranchiseConsultingCompany.com WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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BODYBAR Pilates

Fundraising U

Premier Martial Arts

Color World

Garage Force

Smash My Trash

D1 Training

Koala Insulation

skoah

Monster Tree

SPENGA

Upscale Pilates studio where quality instruction, a spa-like environment and an incredible customer experience meet to produce a business model driving strong returns. Embrace the Shake!

Convenient, simple business model offering 5 services: painting, power washing, gutter installation, drywall and light carpentry, and holiday lighting. Color Your World, Inside and Out!

Impact youth and communities by offering division one level sports training for both youth and adults. Drive strong revenues while building athletes of character. The Place For The Athlete!

The Exercise Coach

Over 100 now open! Personal training finess studio focused on consumers ages 45+. Proprietary fitness technology and a 20-minute workout create an experience unlike any other fitness concept. Low Cost, Simple & Profitable.

FlannelJax’s

Premier indoor entertainment and axe throwing venue focused on corporate team-building events and leagues. Extreme. Social. Fun

You drive your business. We drive your growth.

WHAT WE DELIVER

Leader in the school sports fundraising industry making an impact in local communities while driving strong returns for franchisees. Equip students, coaches and communities to Dream Big, Raise More, and Work Smart!

Launched strong! Over 100 clubs now open driving strong returns. Simple, proven and profitable martial arts concept focused on youth character development and community impact. At Premier, No Kid Sits the Bench!

Premium concrete coating and custom storage installation, unrivaled in quality and durability for both commercial and residential customers. Your Concrete Coating Solution.

Incredible launch…Over 100 territories sold already! Highly disruptive model built to shake up the commercial waste industry. Recurring revenue stream that reduces haul volumes and harmful emissions…we sell savings! Smash Trash, Save Cash.

High-quality insulation service aiming to reduce energy bills and waste. Backed by seasoned franchisors, Koala offers full support for franchisees (even a call center!) and is poised to become the household name in insulation. Delivering Efficiency, Improving Comfort.

First to market facials-only concept leveraging the shift to boutique beauty… now a $500B industry! Personal training for your skin through memberships driving recurring revenue. But it’s not just service… plant-based proprietary blend products drive 50% of revenue! Simply Powerful Skin Care.

First and only tree service franchise continues to demonstrate year over year increase in revenues! Reliable income streams make Monster a low risk, low overhead and proven opportunity with turn-key marketing and support systems. Money Really Does Grow on Trees!

Unique, fast-growing and profitable fitness concept combining 20-minute segments of spin, strength and yoga to create what’s simply known as “The Best Workout Ever!”

WHAT IS FRANCHISE FASTLANE?

Franchise FastLane is an accelerated turn-key franchise sales organization (FSO). We work with a limited number of franchisors to perfect their discovery process, bring them qualified franchisee leads and drive explosive growth.

SAVE MONEY

FAST-FORWARD

PROFIT

STAY FOCUSED

Minimal cost until we deliver

Expedite your growth

Become a sustainable brand

Continue to do what you do best

EXPERT ADVICE

Never Been in the Food Business? Why Start Now? by Martin Greenbaum, Consultant, The Franchise Consulting Company No matter if you never have worked in a restaurant, took a job flipping burgers in your teens, or are a culinary pro, it’s safe to say that everyone has a relationship with food. Aren’t we all food critics to some degree? I’m sure you know an amazing restaurant concept when you see it. You know, the restaurant that everyone is talking about, they’re busy all the time, and you consider it a treat whether you eat there or take it home. And when you’re waiting in line, amidst all the other customers in anticipation, you have to think about how successful the business must be. Perhaps it would be great to own such a restaurant. But how could someone who doesn’t have a background in food be as successful? No Food Experience Needed The stark reality is that 68% of all franchised restaurants are opened by people with little to no food experience. That’s why food franchises have a much higher success rate than independent restaurant. What food franchisors are looking for is franchise owners that have strong management and customer service skills, with the ability to execute on welldefined operational protocols with a high degree of

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consistency. Not only do most food franchises not require food related experience, many prefer that their franchise operators don’t come from the restaurant industry. From the franchisors’ perspective, this alleviates the need to un-train owners of bad habits prior to learning proper procedures and protocols. Don’t let a lack of food experience keep you from investigating the restaurant industry. It also offers great opportunity to those who are looking to scale into multiple locations and grow their income and net worth. Our Culture is Changing There are a variety of trends in the restaurant business and these trends are related to diverse cultures in our

Loyalty & Frequency When it comes to franchise business models, few have the frequency that restaurant concepts have. People have to eat and although they cycle through a variety of favorites, there are many restaurant franchises that retain a high degree of loyalty and frequency. As you investigate restaurant franchises, it’s a good practice to understand their customer frequency and loyalty metrics. Does the franchise have a loyalty program and what value does it offer? Also, does the restaurant make it easy for customers to interact with the brand through Apps or online ordering? Most importantly, do customers love the food? The best ways to get a feel from brand loyalty is to

DON’T LET A LACK OF FOOD EXPERIENCE KEEP YOU FROM INVESTIGATING THE RESTAURANT INDUSTRY. communities and the rise of the millennials. Customers in the quick serve restaurant segment are looking for quality, options, speed, convenience, flavor and experience. They want to be able to enjoy great food with social interaction or take it home to a more private setting. It’s about treating themselves to delicious food when, where and how they want it. Today’s restaurant franchisors understand this and are tailoring their business model to cater to customers unique experience preferences.

experience the restaurant in person and interact with real customers. It’s also a good practice to investigate the brands reputation online and see what customers are posting, sharing, tweeting, etc. about the brand. Obviously, it’s best to join a franchise that has a solid strategic plan that is carried out with consistency systemwide. Scalable Business Some of the most successful franchise owners are those that started with one location and grew to many. If you look at some of the biggest

restaurant brands, you’ll find that multi-unit operators are in abundance. In fact, most restaurant brands help you structure your business to scale from the onset. In fact, they are seeking franchise candidates that have lofty goals and the business acumen and drive to turn goals into accomplishments. When it comes to restaurant franchises, there’s no shortage of options of legacy and emerging brands to choose from. I recommend finding a great emerging franchise that’s unique, relevant to the demographics, and one you can quickly scale. Community Impact You have to put yourself in the shoes of the owner and understand the pride they must feel for what they do. First of all, you’re helping people fill a need—to eat. Most of us would like to make that experience as enjoyable as possible. Second, you bring people together. Families, friends, co-workers all coming together to share the experience of having your food. And let’s not forget the impact you have on your community by providing jobs and creating opportunities for employees to learn, be productive, and foster pride. ABOUT THE AUTHOR Marty Greenbaum enjoyed 8 years in the family franchise business and another 27 years as a marketing professional in the franchise industry. As a franchise consultant he helps people across the country determine what franchise options are best suited to enable them to achieve their lifestyle and financial goals. info@ TheFranchiseConsultingCompany.com

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Meet NuVinAir

at the world's biggest virtual Franchise Expo! For dates and registration details go to: www.franexpousa.com

FINDING SUPER FANS

Trader Joe’s Has Raving Fans— Does Your Business? by Mike Martuza, Consultant, The Franchise Consulting Company What is a Raving Fan? It’s a customer who not only uses your services regularly but also raves about your business to others. Inside the world of Trader Joe’s long time shoppers will give newbies advice as to what products to try while they are in the store and will rave about the products and customer experience while they are out of the store. Trader Joe’s has perfected growing their business by having existing customers become their primary source of advertising. In case you do not have access to a Trader Joe’s and have no idea what I’m talking about, Trader Joe’s is a grocery store – but not your mother’s grocery store. It’s an eclectic, fun and interesting place that turns grocery shopping into kind of cultural experience. They provide their customers with incredible combinations of low-cost staples along with moderately priced exotic items that cannot be found in a common grocery store. At first glance someone unfamiliar with a Trader Joe’s might think, “So what, another specialty grocery store”, but for its customers, Trader Joe’s has achieved the most loyal and fervent following in the industry. If you haven’t been able to tell, I would be the epitome of a Raving Fan. My

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wife claims that if Trader Joe’s was a cult I would be first in line to join as I not only shop there all of the time but I’m also a walking commercial. How does Trader Joe’s create raving fans? How can I take some of their methods and apply them to create raving fans for my business? What I realized was that to create raving fans I needed to create a “superb (or) memorable customer experience” that exceeded what my competitors provide. This proved to be trickier than expected because I quickly realized that my customers were not just the people looking to buy. My customers also included my employees, business partners and members of the business community with whom I interact. My goal is to have anyone who refers my business be certain that I will treat his or her referral the

right way. Walk into any Trader Joe’s and you will find crew members (employees) wearing Hawaiian shirts, handing out balloons and stickers to kids, and providing customers with samples of their products. Since every crew member has been trained to do all tasks in the store, the shopper never waits in a long check out line; I don’t ever recall standing in a line of more than 2 or 3 people. When I can’t find something a crew member will stop whatever he or she is doing and walk me over to the product. Lastly, if I’m unsure about a new product they encourage me to buy it, try it, and return it for a full refund if I don’t like it. Can you think of another grocery store chain that creates this type of experience for its shopper? To create an experience like this for the shopping-

Article reprinted with permission from the book “The Franchise Rules” by Michael Martuza

customer, Trader Joe’s must be treating their crew member and customers rather well. Although wearing Hawaiian shirts to work probably helps morale a little bit, there are bigger reasons the employees enjoy the work experience. The product layout in the store is determined by the employees based upon what’s best for the shoppers of that store. In addition to input into the store’s decisionmaking process, employees are well paid and are provided retirement accounts. Finally the other customers of Trader Joe’s, the communities and their suppliers are also raving fans. For the communities Trader Joe’s brings good jobs and their appearance

is a source of pride for the community, a sort of “we have arrived” statement not unlike the first openings of Starbucks in a community a few years ago. For the product suppliers Trader Joe’s is easy to do business with – no coupons, advertising fees, shelf fees or other headaches that they go through with the big grocery chains. So with Trader Joe’s employees, communities and suppliers serving as the store’s raving fans, is it any wonder that shoppers are their primary marketing tool? The lesson I took from Trader Joe’s to implement in my own business is that no matter who I am dealing with - past or potential clients, business partners, affiliate

organizations, etc. - I should treat them as I would want to be treated. Remember the Golden Rule? Sometimes in business it’s about doing the right thing, not about making the next dollar. Do the right thing by everyone you work with and you will win Raving Fans and help your reputation and business to grow. ABOUT THE AUTHOR Mike Martuza is a serial entrepreneur, lecturer and author of the best selling book “The Franchise Rules.” Mike has over 30 years of business ownership, business creation, franchising, consulting, coaching and management experience. He has been helping people find great “fitting” franchises for more than a decade. Reach him at 617.337.3033 or mikemartuza@ thefranchiseconsultingcompany.com.

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Join the premier managed IT services franchise, TeamLogic IT IN-DEMAND BUSINESS-TO-BUSINESS OPPORTUNITY

AWARDS AND RECOGNITION

TeamLogic IT provides businesses with technology support and services that range from simple computer systems support to managed IT services and project outsourcing. As an owner of your own TeamLogic IT business, you’ll help small- and medium-sized companies with a broad range of IT services. Your clients will come to rely on you to keep their technology current and their businesses running efﬁciently. You’ll help them with proactive, preventative and responsive IT services. Our monthly recurring revenue model is a win-win for you and your clients. And, the camaraderie, peer support and drive among our network of franchisees are like none other in the industry.

• The Channel Company® MSP 500 ELITE 150 • Channel Futures™ MSP 501 #37 • Entrepreneur ® Magazine Top 500 Franchise • Forbes Best Franchise to Buy • Franchise Business Review™ Top Franchise • Franchise Times® Top 200 Franchise • Franchise Gator Top 100 Franchise • Inc. 5000

FRANCHISE OWNER PROFILE The ideal candidate for a TeamLogic IT business is a person who wishes to work in a business environment, understands technology, has an aptitude for sales and/or building relationships, and enjoys working with other business professionals while building a team to deliver outstanding service and support. Many of our franchise owners were previously IT directors for small companies, executives in corporate America, engineers or technology consultants.

READY TO LEARN MORE? CONTACT US TODAY.

866.TEAMLOGIC

TeamLogic IT 949.683.3314 26722 Plaza, Mission Viejo, CA 92691

pspaan@teamlogicit.com teamlogicit.com teamlogicfranchising.com

EXPERT ADVICE

Becoming Top Dog in Your Franchise Brand by Rich LeBrun, Consultant, The Franchise Consulting Company

THE CHOICES ARE ENDLESS. From cleaning and fitness franchises, to fast food and relocation services, Forbes. com reports there are about 4,000 franchise systems in the United States alone. A qualified consultant walks you through the process of selecting a franchise that best suits you. The franchisor provides systems, tools, training and support to help you meet its brand standards for customer satisfaction. But it’s up to you to make your new business not only a success, but one of the top franchises in the brand.

Three of the most important things to help you achieve that goal are finding a franchise that fits your budget, personal interests, skills and experience; following the franchise plan with a commitment to succeed; and not only being a good leader but an even better follower. FINDING A FRANCHISE THAT’S A GOOD FIT Picking the right franchise for your passion and skill set is key, according to a recent article in BusinessNewsDaily. com, which suggest future entrepreneurs look at their personal goals, strengths, what role you want to play in the new business and what your investment budget is. It’s also important to find a trustworthy franchise that’s led by people who truly care about the people investing in their system. They respond to any personal and professional questions you may have and provide that “just right” fit you are seeking. COMMIT TO SUCCEED After carefully weighing all the options and choosing a franchise. Even though you are now the proud owner of a franchise, you still have to adhere to the systems and procedures the franchisor has put into place to succeed. If you commit to following the

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plan, your chances of being a successful franchise owner will exponentially increase. Every franchise has top performers, average performers and below average performers. What differentiates the top from the bottom is YOU. The franchise can only do so much by providing operating systems, marketing, training and branding in one place. The top performers pay close attention to costs, are committed leaders in their community and are able to build winning teams.

WHERE YOU LEAD, I WILL FOLLOW “The stronger the individual franchisee,” writes FranchiseDirect.com, “the stronger the entire franchise system.” While all franchisees in the brand want the system to succeed, there’s an unspoken competition to be the top producer. That’s a great thing. The business buzz word today is knowing your “WHY”. One of the best things you can do is for yourself and your

THE BUSINESS BUZZ WORD TODAY IS KNOWING YOUR “WHY”. business understand why you want to be in business in the first place. Ask yourself, what type of leader do you want to be, what will you stand for in the community, are there certain social causes that you align with that your business can support. Dream beyond the franchise. The franchise will give you the platform to be the boss and owner you always wanted to be. Barbara Kellerman, a leadership lecturer at Harvard University’s John F. Kennedy School of Government author of “Followership: How Followers are Creating Change and Changing Leaders,” said a person can learn about being a good leader by being a good follower. That includes making the commitment to learn what works best for your franchise and not being too proud to ask for advice when needed. You must be willing to work well with others, including the franchisor, other franchisees and customers, and assume responsibility for both the good and the bad. Finally, be flexible. As author, entrepreneur, philanthropist and life coach Tony Robbins once said, “Stay committed to your decisions but stay flexible in your approach.”

HERE'S TO YOUR SUCCESS!

ABOUT THE AUTHOR Having had the opportunity to own and operate several businesses throughout his thirty-year career, Rich LeBrun is passionate about helping his clients reach their financial freedom and secure their future through business ownership.

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OUR STYLISTS USE THEIR EXPERT TRAINING TO RECOMMEND THE PERFECT CUT OR STYLE FOR YOU.

OVER 2,700 LOCATIONS NATIONWIDE

EXPERT ADVICE

Why Not Buy a Business While Planning for the Next Recession? by Rick Morgin, Consultant, The Franchise Consulting Company Think back to 2008-2009. Unemployment was at 10% and more than 170,000 small businesses closed. But wait, not everyone’s finances suffered during that period. There are industries that performed well during those hard-economic times. Franchising performs well in all economic conditions. For example, in periods of growth catching the next wave of opportunity drives franchise growth. During a slowdown, the motivation of controlling one’s career and livelihood drives investment into franchising. Innovation in Franchising is not stopped by an economic slowdown. There’s no perfect time to buy a business. If you are looking for a franchise that has weathered a recession, start by asking yourself a couple of questions: are the products or services luxury items or necessities? How will your customers change their purchasing decisions during a downturn? Some industries that have shown resilience and endurance during a recession are: RETAIL CONSIGNMENT Customers can rationalize buying gently used goods versus new. According to CNN Money, in 2009 clothing

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store sales dropped 10%, but consumer spending in second hand or thrift stores increased an average of 35%. HEALTH AND SENIOR SERVICES The Bureau of Labor Statistics estimate that the demand for home health care aides is expected to grow by 70% as the U.S. population continues to age.

PETS

Why not look at the Pet Industry? Over 85 million U.S. families now own a pet and our pet owners are spending more every year. The number of U.S. households has increased 2% annually since 2011. But, consumer on their pets has increased 7% annually in the same time period. Thompson Reuters reported that Pet Care spending grew during the last two recessions: 29% during the 2001 recession and 17% during the 2008-09 recession.

WHAT’S TRENDING AND WHY THE PET INDUSTRY WILL CONTINUE TO GROW.

• Millennials while being 25% of the U.S. population own 35% of all pets. • Baby Boomers and Empty Nesters own and spend on pets. Fewer than half of the Baby Boomer generation has reached their 70’s. This means there is plenty of room to grow. • Millennials aren’t the largest group of pet owners but are some of the biggest spenders. Owners ages 18-24 outspend all age groups with an average of $173.67 per month. Pet owners between 25-34 of age spend an average of $141.50 per month. • The Institute of Family Studies cites that millennials (born 1980 to 2000) are marrying later and they turn to pets for companionship till they marry and even after. • Spending on veterinary care is outpacing all areas. From 1991 to 2015 spending catapulted from $4.9 billion to $35 billion per year. Pet owners will not skip their pet’s medication during difficult economic times Pets are part of our families; the humanization of pets has propelled the long-term trends of this industry. Once

MILLENNIALS WHILE BEING 25% OF THE U.S. POPULATION OWN 35% OF ALL PETS.

ABOUT THE AUTHOR

can argue that the products and services for Pets are necessities. Owners will cut back on other things before changing the grades of dog food and other pet supplies, especially medication. The Pet Industry brings a wide variety of opportunity. From

mobile grooming, boarding, daycare for socialization, training, retail, and CBD, there are great business models to research. Don’t discount retail, one Franchise system reached a milestone in achieving $1 Billion in Franchisee revenue.

Rick Morgin is a Consultant with The Franchise Consulting Company and alumnus of Santa Clara University. We assist clients with the educational process of researching and selecting available franchise businesses that best suit desired lifestyles and financial goals. The research, qualification, and application service we provide is free; our fees are paid by the Franchise company when a client opens their business. For more information please email rick@ thefranchiseconsultingcompany.com, call/text at (925) 324-6371 or visit https:// thefranchiseconsultingcompany.com WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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EXPERT ADVICE

Owning a Business is Great for Many People 4 REASONS WHY OWNING A FRANCHISE IS EVEN BETTER: by Seth Lederman, Consultant, The Franchise Consulting Company

hen you decide to start a business of your own, it could be a tough task to choose from the different categories, types, and business models available to you. In general, you may either want to start something completely of your own, which we can call as a traditional business model or alternately choose to buy a franchisee business option

from an existing franchisor. Both these options have their own pros and cons. For the sake of brevity, and the opportunity to share additional content with you in future articles, I will keep our focus on the benefits of franchise ownership. The continual growth of franchising and its impact on the GDP is really remarkable. Of course, within the world of franchising there are many

different options. Some are more structured and some are more flexible, but I do want you to know that it has been my experience that people need to understand how franchises really work, not the media stereotypes that you might read about but the reality of the daily business, and it is my commitment in this industry to help people figure that out before they even look at any particular franchise.

YOU ARE FREE TO CHOOSE, BUT YOU ARE NOT FREE FROM THE CONSEQUENCE OF YOUR CHOICE— A UNIVERSAL PARADOX 1. PRESTIGE People look up to business owners, and franchise owners who have established brands. When you own a franchise, friends and family will see you as a successful business owner. (Start-up entrepreneurs often take years before they get this “status” among those closest to them.) People rightfully respect franchise owner as community leaders. They create jobs (more about that shortly) and they have a positive impact on the local economy. Franchises are often supported by national brand advertising. You can probably think of half a dozen well respected brands right off the bat that are franchises.

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2. LOWER RISK Seasoned business owners know that entrepreneurs are not risk takers but risk minimizers. A study by franchise expert Scott Shane found that franchises have nearly double the success rate in early years than new businesses that are not franchises. The risk that most businesses take when they start from scratch ultimately boils down to one thing: untested concepts and practices. This is where franchises really shine. One important quality of franchises is that they are based on tested aspects of every part of the business. Guesswork is reduced to a minimum, and the chance of lasting success and wealth creation is significantly increased.

3. SYSTEMS Every business that’s successful eventually develops a system. You can do it by trial and error (the way many start-up entrepreneurs do), but with a franchise you don’t have to. When you get a franchise, you have a proven system ready to go to work right away. Here are just some of the proven business systems that come with a franchise: • Operations systems • Marketing systems • Sales Systems • Management systems • Customer service systems • Training systems for employees • Customer loyalty and retention

4. MONEY Franchises are businesses that are proven to be successful. Savvy franchise owners often view their franchise as an asset. Depending on how you staff and run your franchise, you can be the manager, or you can hire a manager and let the franchise make money for you without the responsibilities of day-to-day operations. There are many reasons people get into franchising, but if the franchise didn’t make money, they wouldn’t stay very long.

Here are some interesting facts about franchises: There are over

3000

franchise brands across

industry segments.

There are

785,316

franchised establishments, which is roughly 2% of the total businesses in the country.

Visit almost any town in America today and on many streets, you will find franchised businesses. One of the reasons that many franchises have been so successful is that, in franchising, a business synergy is created.

However, that 2% produces a staggering

Franchised establishments employ over

in output each year.

people each year creating, on average, 11 jobs per franchise establishment.

$819 billion

8.7 million

Franchisees brought together under one trademark can achieve things that as individual businesspeople they could not do. Group advertising, buying power and the sharing of ideas are some examples of what can happen.

Additional things to consider when weighing your options between franchising or a start-up: • If you know you want to run your own business, but you don't have a business idea. • It's also good for first-time business owners, as it offers support and training and for many networks you don't need any prior experience. Starting up solo can be much more daunting as it requires skills in every single area, from accounting to PR to sales. • You don't have much of your own money to put into a business, as you're usually more likely to secure bank finance than you would if you were starting from scratch. • But franchising isn't just for first timers. It can also be a great opportunity for more experienced businesspeople to make profit

in a relatively secure set-up, providing the possibility of fast growth without all the risk involved with starting up. • It's also a strong option if you want to get a business up and running quickly, as you can simply follow templates and already-tested working methods rather than spending months trying out different ideas and floundering about trying to get everything in place. • It's a good way of getting into a sector you have no experience in, as your franchisor will give you training, rather than you entering it with no knowledge and resultantly risking failure.

ABOUT THE AUTHOR Seth, a Franchise Acquisition and Development Specialist, is a multi-faceted entrepreneur with 30 years of experience in small business success, including ownership and sale of his own business enterprises. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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•

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Great Clips, Inc. • 4400 West 78th Street, Suite 700 • Minneapolis, MN 55435 • 800-999-5959 or 952-893-9088 • State of MN Reg. #F-928 This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law and the State of New York. Such filing does not constitute approval by the Department of Law of the State of New York. THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.

FRANCHISEJOURNAL.COM/SUBSCRIBE C O N TA C T U S I N F O @ F R A N C H I S E J O U R N A L . C O M

Q&A

VETERANS & Business Ownership by Steve Taylor, Consultant, The Franchise Consulting Company successful for many but especially for veterans.

Mr. Robert Addie grew up in Winchester, MA. Following high school, Robert enlisted in the Army reserve and attended the University of Massachusetts, Amherst where he studied business. Robert left the Army Reserve in 1989 as an E-5. Robert is both a franchisee and a corporate master (supports franchisees under him in a specific geographic area) for Action Coach – a global business coaching franchise that offers businesses, entrepreneurs and professionals personalized one-on-one mentorship. Interviewer (Steve): Robert – thank you for speaking with me about veterans and business ownership. Robert: You bet. I think we share a passion for a business model that has proved very

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Steve: Let’s start near the beginning. When we first met, you shared a great story about family, college and the military and how they reinforced each other. Robert: My parents were hard working, blue-collar folks. They wanted me to have more opportunities than they had. To them, this meant college. Additionally, there was a tradition of military service in our family. So . . . when I left high school, I enlisted in the Army. And in Massachusetts, that equaled zero tuition at state schools. BINGO! Steve: You went to Basic at Ft Benning? Robert: Yes – the barracks were called “Harmony Church” – They should have been condemned long before I got there and no longer exist. Maybe some of the older readers will remember them. I got qualified as a 11 Bravo infantry soldier, MOUNT (Military operations in urban terrain), demolition expert and motor pool (drove ambulances). Steve: What else have you done professionally, since? Robert: I have had a diverse career, but some type of

relation to franchising is a constant. For example, I helped develop theme restaurants for a hotel group that eventually became franchises. Steve: And Action Coach? Robert: A longtime friend of mine started the business and offered me the United States master(!). One morning (I was living in New Zealand at the time), I came into the office and saw a pile of thermal paper 3 FEET HIGH in front of the fax. My friend had fax’d the master agreement contract and asked me to consider the purchase. My (stunned) response was “I am in New Zealand, I have a young family, were are in the middle of a move back to the USA so at this time, sadly, . . . no thank you”. Fast forward 20 years and I was given another opportunity by Action Coach. And this time, I grabbed it and am very glad that I did. Steve: Why does Action Coach make especially good sense for veterans? Robert: The great thing about Action Coach is that 80-90% of what we do comes from a framework. Now EVERYBODY has to adapt to unique and changing circumstances – but veterans are uniquely

A STRONG ECONOMY FOSTERS A HIGH FUNCTIONING SOCIETY AND I SINCERELY BELIEVE WE ARE AGENTS OF CHANGE AND IMPROVEMENT. well qualified to stay focused on the MISSION in the midst of adaptation. Add to that a strong aptitude for accountability . . . and you have a very good Action Coach. Steve: Thoughts about transitioning directly from the military to franchising? Robert: I suggest it. Easier to transition immediately – and not be distracted. Steve: Would a former senior enlisted member be a good candidate? Robert: Absolutely. The typical senior enlisted person today has much of the same focus on mission accomplishment, leadership, and adaptability as any officer. Steve: How much does an Action Coach cost? Robert: $100K plus 4-6 months living expenses. For example – if you got an SBA loan you would need $10K plus the living expenses. Steve: The hallmark of a great franchise is the quality of the support. What kind of support can Franchisee’s expect? Robert: 50-60% of our staff are veterans which says a lot by itself. Each one shares a passion for creating successful franchisees.

Steve: You said you are moving to be closer to your parents. How does that impact your business? Robert: Not at all. I can move wherever I need to be as long as I have internet and airport access. It is one of the unique things about my current role at Action Coach – the portability of opportunity. Let me add – there is a HUGE demand around the world (Action Coach is in 87 countries) for business coaching and skills – and there are opportunities to move internationally within Action Coach. A strong economy fosters a high functioning society and I sincerely believe we are agents of change and improvement. Steve: Sounds like you have a Mission! Any parting thoughts? Robert: Franchising for veterans is an ideal path to apply leadership and execution skills to an established business – it is your clearest path to success. Learning the role of an Action Coach is no different than learning an MOS and executing on a mission.

SUCCESSFUL VETERANS = SUCCESSFUL ACTION COACHES! ABOUT THE AUTHOR Steve Taylor is a former Naval Officer, Naval Academy Graduate and Franchise Consultant with over 30 years industry and military experience. He may be reached at (925) 344-5981 or SteveTaylor@TheFranchiseConsultingCompany.com. WWW.FRANCHISEJOURNAL.COM | APRIL 2020

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REAL ESTATE

How do you choose the right

Real Estate Firm to partner with? by Rocco Fiorentino, MSM, CFE, Franchise Practice Leader at Keyser Real Estate

Have you ever gotten off the phone with your real estate broker and thought, who does he really work for? Have you noticed your broker trying to talk you down on your ask for free rent, Tenant Improvement Allowance or not wanting to fight the Landlord on the starting rent? Landlords are in control of the Real Estate system and they have stacked the deck against you by setting

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up a system where their partners are running around the country trying to tell you that they work for you. I think that we all know the reality of this situation and it ends up costing us, as a Tenant, a lot of money on an annual basis. A commercial real estate broker that represents both parties within the same transaction is creating a conflict of interest that is a detriment to you, the tenant, the franchisee. You are hiring the broker to work for you so why would you hire the guy that the Landlord already has working for them? Tenant Only brokers should be acting on your behalf during the negotiations and fighting to

get you the best terms available for the space in the market. This should be non-negotiable so that it is integral to the success of your business venture. Finding the right fit to support you, the tenant in your search for the right location to open your franchise business is one of the biggest hurdles to getting your business started off on the right foot. Besides searching for the right site, there is a strategic process of negotiating that space to get the terms that will help your business to thrive based on the market conditions and your economic model. Demographics, visibility, access, parking ratios, co-tenancy and psychographics can all be of varying importance for your specific franchise and market. Having the right partner to help you in this search and negotiation will be critical to your long-term success. How do you find the right person to help you with this important aspect of your growth process? Some commercial real estate brokers have different specialties and characteristics that can set them apart from any other. Every broker should have a specialty that would make them more valuable to your specific type of business

ONE OF THE MOST IMPORTANT DECISIONS THAT YOU WILL MAKE IS WHO YOU WILL PARTNER WITH AS YOU TO WALK YOUR FRANCHISEES THROUGH THE REAL ESTATE PROCUREMENT PROCESS. than a general broker. In the medical field, most doctors specialize in a variety of types of medicine. Certainly, there are General Practice doctors or family doctors, but many doctors are specialist in Cardiology, Dermatology, Oncology,etc. Lawyers specialize in a variety of areas of law. Knowing that your broker is a specialist in Franchising provides value to your process that other brokers will not bring and the cost to you is the same regardless of their specialty. Working with a broker that is a broker who represents tenants only, adds even greater value as you will know that they will never bring a conflict of interest into your negotiation and potentially lead you astray in your negotiations which may cost you money for as long as you are a tenant in that space. Working with a broker that knows the market that you are focused in will add additional value and ensure that you are not entering a space that will lead to long term problems like an above market lease, unfavorable terms, parking or visibility issues due to poor location within the center,etc. As a Franchisor, a dedicated national tenant-only broker will provide your brand with additional value as they can work intimately with your brand to understand over time the needs that are unique to

your system. The benefits can extend beyond this as a broker that understands your needs in one market can help you to determine how to find the right areas in other markets that will lead to your franchisee’s success. Mapping support, franchisee communications, market planning and Discovery Day involvement are other values that a national broker can bring to the table to add value to your brand. Knowing that your franchisees are being taken care of will be invaluable to your brand in ensuring that you are not losing the franchisees that you have worked so hard to enroll in our system. As both a franchisee and franchisor, one of the most important decisions that you will make is who you will partner with as you to walk your franchisees through the real estate procurement process. Until the store is open, there is no business being done and you are not growing. Finding the right real estate partner to ensure that this is done efficiently and effectively is paramount to your success. Do the research and find the right Tenant-Only broker to help you and your business will never be the same. ABOUT THE AUTHOR Contact Rocco Fiorentino at rf@keyserco.com

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