FRANCHISE Journal LEARN The Key to Success of Any Business p. 44
THE SCOOP Why Buy A Gym Or Fitness Center? p. 77
HOW TO Use Your Fear — Pivot Your Career. p. 60
TM
MAY 2020 /FranchiseJournal.com
FITNESS EDITION
FIT FOR LIFE
Franchise Expo
TRADESHOWS IN THE TIME OF A PANDEMIC p.17
TAP INTO A $52 BILLION INDUSTRY KOALA INSULATION FRANCHISING • A proven business model that works
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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.
FranExpoUSA.com
AN UNRIVALED FITNESS EXPERIENCE NEARLY 300 STUDIOS SOLD!
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It’s time to focus on building strength, lean muscle and high calorie burn. Throughout 20-minutes of circuit-style HIIT strength training your heart rate remains elevated and you’re pushing your muscles toward exhaustion. Each SPENGA class utilizes one of several formats of HIIT training and a variety of strength training exercises ensuring no two workouts are ever the same.
The body is hot and becoming fatigued. Your final push will focus on strength, flexibility and recovery. The SPENGA workout finishes with 20-minutes of revitalizing yoga. A combination of static, flowing and repetitive movements builds strength and increases body awareness to improve alignment, posture and joint stability. Yoga ends with deep flexibility movements and a relaxing recovery. Take a deep breath; you’ve just completed the best workout ever.
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DAILY
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TUNE IN WEEKDAYS • 7:00pm EST AMERICASVOICE.NEWS
DONATE FOOD & HELP FEED AMERICA During COVID-19 Think About Those Who Can't Help Themselves
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Every donation helps.
contents
MAY 2020
48
LEGENDS BOXING Creating A Second Home For Members.
10
Welcome Notes
17
Trade Shows In The Time Of The Pandemic
24
Should I Buy More Toilet Paper? by Kapil Manocha
28
No "Coronavirus" Can Stop These Sales by Steve Bigari
32 Legal Considerations For Fitness Franchisors Pivoting During Covid-19 by Jonathan N. Barber
36 Top 10 Priorities in Making Your Final Franchise Selection by Seth Lederman
40 Veterans, Remember "PT"? It Could Be Your New Business! by Dave Cooley
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MAY 2020 | WWW.FRANCHISEJOURNAL.COM
44 The Key To The Success Of Any Business by Janice Charles
48
LEGENDS BOXING Results For Everyone by Mike Samson
52
Career Advice From Bob Dylan? by Mike Martuza
56 How Technology and Customers Are Shaping The Franchise Model by Rick Morgin
60
Use Your Fear — Pivot Your Career by Faizun Kamal
64
FITNESS THROUGH THE AGES See Popular Workout Trends Over The Past Eight Decades!
100
72
90
72 FEATURE other's Day Tribute: This Mother/Son Duo M Is Helping Homeowners Make One Of Their Biggest Purchases
77 FEATURE
Why Buy A Gym Or Fitness Center? by Chris Otter
86 Fitness Businesses — Major Players In The Franchise World by Patrick Elsner
90
ROCKBOX Fitness With A Punch
96 Buying An Existing Franchise — A Two Step Process by Nancy Lanard
100 ATHLETIC REPUBLIC Harnessing The Power Of Sport by Charlie Graves
104 CLOVR LIFE SPA A Spa For Your Life. Not Just Your Day.
110 GUIDANT FINANCIAL After The Storm: How To Get Ahead Of The Fitness Demand by Allison Zurich
114 BODYBAR PILATES & FRANCHISE FASTLANE Are Gearing Up For A Transformative 2020
118 118 MAHANA FRESH
Using Food As Fuel
122 XPONENTIAL FITNESS Fights the Fight With The Pandemic Pivot 126 Service Dogs — Why They Are Important by Phyllis Pieri
130 Why Is The Fitness Industry Booming? by Drew Paras
134 Gregory K Mohr: A Multi-Million Dollar Franchise Consultant Shares His Journey
140 Understanding and Managing Fear by Mark Schnurman
144 TALENT SOLVED Psychometric Assessments: Consistently Outperforming Traditional Selection Methods
148 PERSPECTIVE “When we change the way we look at things, the things we look at change.” by Mariel Miller WWW.FRANCHISEJOURNAL.COM | MAY 2020
7
2020 ONLINE FRANCHISE EXPOS Franchise Expo
WWW.FRANEXPOUSA.COM
THE GREAT AMERICAN VIRTUAL FRANCHISE EXPO TIMES ARE 11:00 AM - 5:00 PM EST MAY 15-17
The Virtual Franchise Festival www.nationalevent.com
JUNE 25
The Great American Expo www.FranExpoUSA.com
AUGUST 20
The Great 20 Expo
www.FranExpoUSA.com
OCTOBER 22
The Great American Expo www.FranExpoUSA.com
MAY 28
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JULY 9
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SEPTEMBER 10
The Great American Expo www.FranExpoUSA.com
NOVEMBER 12
The Great American Expo www.FranExpoUSA.com
UPCOMING EXPO: MAY 14 MAY 28-30
International Franchise Expo www.ifeinfo.com
JULY 23
The Great American Expo www.FranExpoUSA.com
SEPTEMBER 24
The Great American Expo www.FranExpoUSA.com
NOVEMBER 23
The Great American Expo www.FranExpoUSA.com
JUNE 11
The Great American Expo www.FranExpoUSA.com
AUGUST 6
The Great American Expo www.FranExpoUSA.com
OCTOBER 8
The Great American Expo www.FranExpoUSA.com
DECEMBER 10
The Great American Expo www.FranExpoUSA.com
PLANNING ON ATTENDING A TRADE SHOW IN 2020? THERE ARE ALOT OF CHOICES! Download our Free White Paper on how to get the most from your time at WHATEVER show you go to! Go to www.FranchiseJournal.com/whitepaper
Franchise Expo
The World's Most Trusted Source of Franchise News
welcome I
NOTES
t is almost beyond comprehension the changes that have occurred in the world since March 13 when President Trump declared the COVID 19 pandemic a national emergency. Schools have closed, businesses have shuttered and most of the population has been in quarantine. Few would ever think they would see something like this in their lifetime.
OUR HEARTS GO OUT TO ALL THOSE WHO HAVE BEEN AFFECTED BY THIS PANDEMIC. The toll on human life stretches into the millions. Along with the turmoil, heartbreak and confusion there have been shining examples of heroism. Human nature is inherently good and the outpouring of support throughout the world has been stunning to see. From children making masks for first responders to 99 year old WWII British Army veteran Captain Tom Moore walking 100 laps in his garden to raise money, everybody is pitching in. By the time you read this Captain Tom will be a centenarian. It is fitting that he is showing his support for first responders through physical fitness. At almost 100 years old, he is still
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MAY 2020 | WWW.FRANCHISEJOURNAL.COM
physically active. Fitness is not a fad, it is life. We are dedicating this issue to Captain Tom and everybody who has so valiantly done what they can, where they can to make the suffering of the world a little bit less. It is times like this that we remember how much more alike we are. We will prevail through this pandemic and get back to the simple pleasures of life. From seeing the kids off
to school, to gathering with friends, travelling for business and going to work out; all of us at The Franchise Journal send our very best thoughts and love to our readers for their continued good health.
Nick Neonakis
Founder, Franchise Journal
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
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CONTRIBUTORS Jonathan N. Barber Steve Bigari Janice Charles Dave Cooley Patrick Elsner Charlie Graves Catherine Greenwald Faizun Kamal Nancy Lanard Seth Lederman Kapil Manocha Kiara Martilla Mike Martuza Mariel Miller Rick Morgin Chris Otter Drew Paras Phyllis Pieri Mike Samson Mark Schnurman Allison Zorich
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
BRING THE HOTTEST DANCE-BASED CARDIO WORKOUT TO YOUR COMMUNITY A combination of personal training and movement-based technique, AKT empowers members to become stronger in their bodies, minds and communities — and have fun doing it!
4 DIF F E R E NT CL A S S T Y PE S DANCE
CIRCUIT
I n t e r v a l w o r ko u t t h a t p a i r s dance-cardio & toning
Timed full-body power & strength class
BANDS
TONE
U n i q u e i n t e r v a l w o r ko u t t h a t uses our overhead bands & b ox t o w o r k o n f u l l - b o d y conditioning
S treng th focused low-impact muscle endurance class, that ends with a guided foam roll
Learn more about AKT franchising by visiting theakt.com/learn
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
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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)
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Franchise Expo
COVID-19 GUIDANCE
TRADE SHOWS IN THE TIME OF THE PANDEMIC FEW BUSINESSES HAVE CHANGED AS RADICALLY SINCE MARCH 2020 AS THE TRADE SHOW INDUSTRY. With a COVID-19
induced ban on congregating and people fearful of getting close to one another, the positives of a trade show are now considered negatives. Pressing the flesh and meeting in person is now causing fear in the general population for the foreseeable future. However, business must continue and the ability for a company to gain exposure to new clients is critical. Just as commerce and entertainment have moved into the online space, so now are trade shows moving into the online space. We sat down with Nick Neonakis and Abel Beyene of The Great American Franchise Expo
Franchise Expo
to discuss what they see on the horizon. As the inventors of using Virtual Reality in conjunction with franchise trade shows, they already had multiple technology platforms that they were using and that has given them a significant advantage now. As one of the premier franchise trade show producers and the only American owned franchise trade show in existence, they have unique insights into how trade shows will evolve online. This article is a synopsis of the conversation. “We do 8-10 physical shows per year and our last show was March 14-15th in Tampa, just as the virus was starting to accelerate. Half the exhibitors cancelled the day before the show and the turnout was understandably low. We WWW.FRANCHISEJOURNAL.COM | MAY 2020
17
wanted to do something to help the community so we turned the show into a giant food drive and gathered TONS of food for Feeding America. This amazing group has now become our main philanthropic effort and every one of our websites has a ‘FEED A KID’ button that takes you to their donation website” said Neonakis. “ONLINE TRADE SHOWS EVERY TWO WEEKS” “We realized that we had to move our shows online. We set an ambitious goal of doing our 1st online show on March 31st and then worked around the clock with our team to make it a reality. Our 1st show had over 250 exhibitors and 4000 people registered” said Beyene “it was a huge success, we learned alot from the experience and then did our second show on April 15th. That was even bigger and we learned even more. We have committed to doing 2 shows per month from now through the end of the year and are focused on being the #1 resource for franchisors to grow through online trade shows.” Here’s how to get your company’s exhibiting plans ready for future trends. 1) In the Future of the Trade Show Industry, Technology Will Be King By 1900, Studebaker was the largest buggy and wagon works in the world with over 3000 employees making over 100,000 horse-drawn vehicles of all kinds. They are now a memory. They were not able to adjust to the changes in the market. Technology will touch virtually every
aspect of your exhibit program in the future. And it’s already started. Interactive experiences are commonplace in trade show exhibits these days. Tools like badge scanners, tablet kiosks and customized apps have changed the way exhibitors interacted with attendees. Going online is a continuation of that. Imagine a future where your booth brings your attendee into your virtual world. Using a VR headset, they can take tours of your corporate headquarters and your f ranchised locations. Using live video chat, they can talk with you and your team. The idea is to create an immersive experience that is even better than a physical trade show because you can give them so much. More technology is on the way. In a web-based world, it’s no longer necessary to wait until the next show for attendees to find what they’re looking for. The trade show experience must offer something that can’t be delivered through the internet. Video chat capabilities are the norm along with the ability of the client to access information if they don’t want to be on video. The primary ways this new value can be added is through education and entertainment. These are much easier to provide in the face-to-face environment of the trade show floor. Product demonstrations will take on a more theatrical flair, with increased technological support (interactive screens and content delivered to attendees’ cell phones). Gaming will find a place in some exhibitors’ booths, too. Attendees can engage with the product in ways not possible elsewhere. Some brands have already embraced using virtual reality headsets and The Great American Franchise Expo has hundreds of virtual reality tours ready to go.
IN A WEB-BASED WORLD, IT'S NO LONGER NECESSARY TO WAIT UNTIL THE NEXT SHOW FOR ATTENDEES TO FIND WHAT THEY'RE LOOKING FOR. 18
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2) In the Future of the Trade Show Industry, Exhibitors Will Make It Personal The kind of personalization that has found its way into other forms of modern marketing will make its way onto the trade show floor. Exhibitors looking to make the most of this trend will begin customizing their trade show marketing efforts. They will appeal to individuals, not groups. Effective marketing in this environment will require anticipating the needs of prospects. Tradeshows must be tailored to their specific preferences. Providing these customercentric, personalized experiences will create a deeper connection with the exhibitor’s brand. The result will be a richer, more memorable experience for the prospect, perhaps even shortening the sales cycle. Savvy exhibitors will focus more attention on market research. Why? Because there will be more data available, and it will be more easily
accessible. Their goal will be to learn all they can about their target prospects. They will then be capable of predicting attendees’ behavior. That gives them the ability to create these personalized in-booth experiences. The Great American Franchise Expo provides a full dashboard of data to its exhibitors. From the contact information of the attendee along with the booths they visited down to the areas of the country attendees are coming from. Data is critical and technological proficiency is a necessity. Solutions and practices that worked in the past are becoming outdated and ineffective. 3) In the Future of the Trade Show Industry, Social Media Will Continue To Be Relevant We all recognize the revolution that social media has brought to the trade show floor. Social media seems to have been designed with trade shows in mind. WWW.FRANCHISEJOURNAL.COM | MAY 2020
19
Think about it. These events are chaotic for attendees, because exhibitors bombard them from all sides. Shows are also just a few days long, so attendees can’t possibly see everything they would like to. Social media channels allow you to connect with these attendees. You can easily offer them incentives to visit your trade show exhibit. You couldn’t do this effectively in any other way. Social media will continue to support the power of face-to-face interactions. These can only happen on the trade show floor. Think about how you’ve used (or should be using) Facebook, Linkedin, YouTube, Twitter, Pinterest and Instagram. They enhance your exhibiting efforts, offering content that’s relevant and delivered in real time. Now imagine what might come next that could offer even better ways for you to connect with show attendees. If you’re not making the most of what’s already available, you won’t be ready to embrace the next new thing. Having a polished and comprehensive social media footprint is a must do to help trade show exhibitors. It allows them to reach prospects and offer information to act on immediately. This has real value for those who embrace it and make the most of it. 4) Summary Whether we realize it or not, trade show exhibiting has changed massively and almost overnight. The old ways of doing things are rapidly becoming antiquated. There is a hope and belief that we will get “back to the good old days” and perhaps we will but those companies that wait around until this happens will be eclipsed by those who are forward facing. In order to grow your brand you must position yourself to meet today’s challenges with new plans and new tools. If your trade show exhibit isn’t prepared for the future, we can help. Reach out to The Great American Franchise Expo for a full review of our offerings as well as a complimentary Social Media evaluation to ensure that you are on the cutting edge of the online trade show learning curve. www.FranExpoUSA.com Abel Beyene: 917-862-6314 abel@franexpousa.com
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MAY 2020 | WWW.FRANCHISEJOURNAL.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 WWW.FRANCHISEJOURNAL.COM | MAY 2020
21
YOU PICK YOUR GOAL WE HELP YOU GET THERE
GIVE YOUR KID THE D1 EDGE Join a Team, Not a Gym
NOW AVAILABLE
At D1 Training, our mission is to be the place for the athlete. Beginner or pro. young or old, we define “athlete” as anyone dedicated to their sport or fitness. We focus on building character and provide a supportive environment with Division I level training where all are welcome!
OWN A D1 TRAINING FRANCHISE NOW IS A GREAT TIME TO OWN A D1 FRANCHISE With the fitness industry exploding, owning a boutique gym facility catering to a higher-paying clientele is a great investment. Owning a D1 franchise is a great way to start.
ATHLETES LOVE TRAINING AT D1 A business is only as strong as its customer base, and at D1, our customers love us. They also love becoming a part of a fitness community and telling others about it.
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DISCOVER
CANADIAN
FRANCHISING! Online Trade Show Marketing is the #1 Way to Meet New Opportunities!
THE LARGEST ONLINE SHOW IN CANADA!
Attend
Tour
Meet
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Franchise Expo
COVID-19 GUIDANCE
Should I buy more toilet paper? by Kapil Manocha, Consultant, The Franchise Consulting Company In today's circumstances I get a lot of questions like these — I am not sure what will happen to my job...should I start exploring business options? I was in the middle of evaluating business opportunities....should I stop? Do I need to course correct? What will happen to small businesses? Is the world coming to an end?
I THINK THE FIRST QUESTION TO ASK YOURSELF IS — DO YOU BELIEVE THAT THESE CIRCUMSTANCES WILL LAST INDEFINITELY OR THAT THE WORLD IS COMING TO AN END? If your answer is 'Yes', then I think you should just stock up on more toilet paper and canned food, withdraw all your money from your bank and stock investments, and hoard the cash and sit at home. I am more of a "glass half full" kinda guy and I believe that like all else, THIS TOO SHALL PASS! So if you're in the same camp as me, or at least open to the idea of considering an outcome other than a doomsday scenario, then let's think through this logically. A good friend of mine posted something on social media that caught my attention. I am going to steal shamelessly and start with that Question: What do you think LeBron James is doing right now? Hint: If your answer is “Binge-watching Love Is Blind on Netflix”, you’re wrong! Answer: He’s keeping his head in the game! He’s working out, he’s reviewing game footage, he’s doing everything in his power to be MORE
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READY THAN ANYONE when the NBA ramps up again. Now, will the business landscape look different? Are we going to discover that some services like consultations with your doctor can be done virtually? Are companies like Zoom® going to play a bigger role in our lives? Are businesses like JCPenny® and Macy's® going to struggle? Probably so. But these are not the outcomes of the COVID-19 virus. These changes were gradually happening around us all the time as a result of shifts in consumer preferences, advances in technology, market demographics, efficiency and productivity gains, and other such reasons. The current situation might have accelerated the transition, but it certainly did not cause it.
IN TODAY'S CIRCUMSTANCES THE QUESTION TO ASK IS — IS THERE ANYTHING FUNDAMENTALLY WRONG WITH THE U.S. ECONOMY? If you look back in history at the economic crises — The 2008 downturn was caused by the subprime mortgage crisis, where $200,000 homes were being valued at $1 million with home loans up to 99% granted indiscriminately to borrowers with poor credit histories. This severe over valuation of real estate and the underlying high-risk loans ultimately caused the market collapse of 2008. So there was an underlying economic problem. The 2001 downturn was caused by the dotcom bubble bust. Technology companies with simply a business idea and a dot-com domain address were valued for hundreds of billions of dollars. These companies had no assets, sales, or earnings to back up these huge valuations. Again, a fundamental economic issue. The 1990 and 1980 recessions were caused by the Savings and Loan crisis, interest rate hikes and restrictive monetary policies enacted by the Federal Reserve. Once again, an underlying economic cause. I could go on and on about 1974, 1970, 1960, etc. but I think you get my drift. So if underlying economic mis-steps like overvalued companies, overheated housing markets, lackadaisical credit controls, monetary and fiscal policies, oil prices, etc. cause recessions, is there anything fundamentally wrong with the US economy at this time? I don't believe so. The one thing I can think of is consumer confidence, which will likely take a hit. But essential services like salons, automotive, food, fitness, senior care, childcare, property services, and many such industries will still be needed just as much as they were before. Have you ever heard anyone say - "I'm not going to get a haircut because the economy is in a downturn"? If your basement was flooded could you wait to fix it until after a recession? What if the brakes on your car went bad? Could you put that off? Can Amazon kill your childcare business? Can you outsource your yoga or pilates studio to Mexico?
You have a choice — you can either hoard more toilet paper or you can keep your head in the game. Some things to think about: • SBA Loans - Under the recent CARES Act the federal government has appropriated $17 billion in SBA Loans to subsidize some small businesses. The SBA will also pay six months of principal, interest, and fees for new SBA loans made between March 27, 2020, and September 27, 2020. • Interest Rates - are at an all time low. With the SBA's generous terms and low interest rates, this is the time lock in the loan for your small business • Commercial Real Estate - Some mom and pop businesses will close. Do you think these landlords will be willing to offer flexible terms and tenant improvement allowances? Very likely. • Oil Prices - are at a historic low. What does that do to the cost of construction and commodities in general? • Contractors - if you need to build your yoga studio or oil change shop do you think contractors will be offering discounts and willing to cut you some deals? You bet • Franchisors - is there a possibility of franchisors offering some favorable terms or bigger territory? Maybe At some point life will go back to normal people will eat out, go to the movies, workout, get massages, and take their kids to the ball game. Like LeBron, if you keep your head in the game now, you will be ready to take advantage when it does. ABOUT THE AUTHOR A leading Franchise Coach, Kapil Manocha has helped dozens of people gain financial and personal independence through business ownership. His proven process matches you with franchise businesses that are the best fit for you. He has also consulted for several Fortune 500 and small and medium companies to help them grow their business and save cost through operational efficiencies. Contact Kapil at 216-538-3661 or kapil@thefranchiseconsultingcompany.com.
WWW.FRANCHISEJOURNAL.COM | MAY 2020
25
COVID-19 GUIDANCE
No “Coronavirus” Can Stop These Sales
T
by Steve Bigari, CEO, SYNQ3 Restaurant Solutions
oday, just about every news headline spells doom and gloom for individuals and for businesses as the Coronavirus frightens consumers to purchase bulk, hoard essentials and stay indoors. American companies are feeling the economic burden as more shops are forced to close due to declining foot-traffic and employee concerns. Numerous retailers reported to Business Insider about the serious challenges they’re facing as they’ve had to do temporary closures, manage without products from China, attempt
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to reassure customers to visit their stores, and figure out solutions for employees who are forcibly without work or who don’t want to come to work because of the spreading virus. Sound familiar? Want to know who’s NOT feeling the pains of decreasing business? Companies that offer off-premise, digital solutions for guests. According to a Guardian article, “Food delivery and digital subscription services are witnessing a surge in sales while department stores, fashion chains and restaurants are taking a hit, as consumers opt to stay in with a takeaway to avoid the recent storms and the
coronavirus outbreak.” While on-premise businesses are seeing a significant decrease in sales, takeout and fast food sales have risen by 8.7 percent, the article states. The interesting part here is that this trend toward off-premise sales has been happening for years, not just during this current crisis. Consumers were already showing businesses that they want more off-premise, automated options for the sake of greater convenience. They wanted these options long before the hysteria of worldwide epidemic hit; and, companies that offer them are reaping the benefits. Is your franchise capitalizing on the off-premise opportunity? Or are you suffering at the feet of consumers … feet that are either in your stores or not. At SYNQ3 Restaurant Solutions, we work with restaurants to provide fully off-premise solutions for customer takeout, catering and off premise ordering. Dozens of great restaurant brands like Chipotle, MOD Pizza and Noodles & Company use SYNQ3 tech to offer frictionless, convenient ordering that’s fast and easy for the guest, whether they want delivery or pickup, and that drives sales while increasing efficiency for the restaurants. So, if guests want
to stay home surrounded by a mountain of cleaning supplies and still have their favorite steak burrito, they can. When a guest contacts the restaurant by voice (car, smartphone, smart-home, etc.), a personalized, branded artificial intelligence or live restaurant specialist takes the order. This AI isn’t like your run-of-the-mill, auto-generated response system that leaves consumers feeling agitated and inconvenienced. This is a conversational, adaptable AI that can pick up on tone, emotion, noise and more and use that data to transition the conversation to best serve the guest at that moment for that order. We never make a guest use automation; we invite them. We meet them where they are, and we take them where they want to go. Even if that means directing the order to a wonderful human orderingspecialist. Now, think about your franchise. Imagine advanced automations and conversational AI handling your orders and other business processes, seamlessly integrating them into your system, making sure your cooking/production/ shipments/etc. happen at just the right time, communicating with your delivery partner’s systems, ensuring calls are never dropped and upsell opportunities aren’t missed, and, ultimately, making life
easier for your consumers and more profitable for you. This technology exists and is operational today. And, at SYNQ3, our technologies are backed by humans … many of whom work from home (take that, Coronavirus). We’ve setup our solutions with fail-safes to make sure the consumer’s wants and needs are always at the center of our processes. It’s all about serving them, no matter what your industry. Think about the current problems your franchises face, beyond the Coronavirus, that could be resolved with the help of automation and other technologies. Problems like labor shortages, inefficient processes, wasted time and resources. On an individual franchise or industry basis, automation can make huge changes and improvements to how businesses operate and grow sales. Then, when you aggregate and start bringing multiple, automated industries together, from retail to restaurants to dry cleaners, technology like SYNQ3’s solutions can completely transform how local commerce looks. The future is poised for the aggregation of consumer purchases, which can increase efficiency and drive profits for all participants. (That’s a story for another day – maybe you caught some of it at this year’s IFA convention 10X chat – or you can read more here).
Overall, as we automate processes and aggregate transactions, we provide greater convenience for guests, better our brands’ reputations and increase profits. We can better protect our businesses and maintain sales despite economic recessions, labor shortages, natural disasters, public-health epidemics, and other crises that will continue to arise. By offering more off-premise and automated solutions for your consumers, you can increase your sales throughout the year, not just during a major pandemic. Ease your franchises’ Coronavirus crisis and set your business for future success with off-premise automations and AI. Start thinking today about how you can make automation work for you and your guests. If you want to find out more about the off-premise, automation solutions that could revolutionize your business and increase profits, get connected with SYNQ3’s CEO Steve Bigari at solutions@synq3.com. ABOUT THE AUTHOR Steve Bigari, founder and CEO of SYNQ3 Restaurant Solutions, is a leader in disruptive innovation for the restaurant industry. Steve challenges traditional paradigms and drives change by transforming the way off-premise, restaurant sales are facilitated. Using AI and other tech innovations, SYNQ3 is the global leader in restaurant automation servicing thousands of restaurant locations nationwide.
THINK ABOUT THE CURRENT PROBLEMS YOUR FRANCHISES FACE, BEYOND THE CORONAVIRUS, THAT COULD BE RESOLVED WITH THE HELP OF AUTOMATION AND OTHER TECHNOLOGIES. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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FITNESS EDITION
Legal Considerations
for Fitness Franchisors Pivoting during COVID-19 by Jonathan N. Barber, Esq., CPA, Partner at Franchise.Law
I
t has been so encouraging to see fitness concepts pivot in response to the coronavirus pandemic. Many franchisors are working tirelessly to develop content and solutions to keep their franchisees’ members engaged. In doing so, they usually keep those members’ subscription fees coming in for their franchisees. This ultimately helps keep their franchisees afloat while the fitness industry has been hit hard. Most fitness franchisors take a common-sense approach to driving revenue to their franchisees during this time. They pump out content, free of charge, that drives consumers to purchase something. That “something” could be one or more live virtual classes, access to a database of virtual classes, fitness programs for kids quarantined at home, or some sort of customized fitness plan. These franchisors could also be raising awareness of
FRANCHISORS (PROVIDING PACKAGES OF ONLINE CLASSES FOR PURCHASE) MUST CAREFULLY NAVIGATE THEIR FRANCHISE AGREEMENTS TO DETERMINE WHO IS ENTITLED TO THE REVENUE FROM THESE ONLINE PRODUCTS. 32
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their franchisees’ difficulties as small business owners. Many franchisors across every industry are promoting gift card programs. For example, they will sell a gift card for $25, but it is redeemable for $50 when the business reopens. This obviously creates revenue right now, which is when it is needed most. As creative as franchisors can get, there are some legal considerations they must be aware of even though they’re trying to help their franchisees out. Most importantly, franchisors need to be aware of the rules for alternative channels of distribution in their franchise documents. Most franchise agreements and franchise disclosure documents discuss “alternative channels of distribution.” All franchise documents are required to address these under the Federal Trade Commission’s Amended Franchise Rule. Alternative channels of distribution are ways that a franchise’s products or services can reach consumers outside of the typical franchise offering. For example, with a restaurant franchise concept, an alternative channel of distribution would be direct delivery of meal kits to customers within a franchisee’s territory. With a gym franchise, an alternative channel of distribution would be online training classes. Many fitness franchisors are jumping on the opportunity to deliver quality content to their members during this time. However, these franchisors need to be aware of the territorial restrictions
in Item 12 of their franchise disclosure document and the corresponding provisions of their franchise agreements. Primarily, their franchise agreements may actually prohibit them from providing this content and service directly to consumers within a franchisee’s territory. These provisions also should outline who retains revenue from these channels of distribution and whether that revenue is subject to royalty fees or other fees. Most fitness franchisors that are pivoting with online classes are offering that content to paying members of their franchisees’ gyms. This makes sense because the members are keeping their subscriptions active to maintain access to this content, which, in turn, benefits the franchisees financially. This results in happy franchisors who are seeing the franchisor step in and support them through this time by keeping their members involved and subscribed. Some other fitness franchisors are providing
packages of online classes for purchase. These franchisors must carefully navigate their franchise agreements to determine who is entitled to the revenue from these online products. The franchisor may not be able to retain any amount for their marketing and production efforts because 100% of the revenue is due to the franchisee. The franchisee could potentially raise claims for encroachment if this causes problems. Ultimately, an enterprising fitness franchisor who is pivoting to support their franchise system during COVID-19 must be aware of restrictions on their creativity. It’s very important for them to collaborate with their franchise attorney prior to rolling out any significant changes or offerings. ABOUT THE AUTHOR Jonathan is an innovative franchise attorney with Franchise.Law. His firm represents over 100 franchisors in transactions and litigation, and they take pride in their creative solutions to today's franchise issues. Contact Jonathan at 980-202-5679, jonathan@ franchise.law or visit www.franchise.law. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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DELIVERY OF FDD THAT IS READY FOR FILING WITH ALL REGISTRATION STATES Managing Partners Jason Power and Jonathan Barber
STARTUP FRANCHISOR FORMATION PACKAGE Executive meeting with Attorney to gather all information required for preparing Franchise Disclosure Documents and Exhibit
Review of all existing corporate documents and marketing materials
980-202-5679 info@franchise.law
EXPERT ADVICE
TOP 10
Priorities in Making Your Final Franchise Selection by Seth Lederman, Consultant, The Franchise Consulting Company
“When you need to make a decision, don’t let your emotions vote” – Joyce Meyer With over 3000 thousand franchise opportunities available, narrowing down your options can be a daunting task. They’re many extrinsic and intrinsic factors at play and in need of significant evaluation and consideration. These are critical; I would consider almost mandatory elements of an astute and pragmatic franchise vetting process. This vetting process for intrinsic factors may require an enormous amount of Due Diligence. DUE DILIGENCE The term Due Diligence is used very often and loosely in the franchise industry. It might be beneficial to know its definition. Due Diligence is the reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something; a comprehensive appraisal of a business undertaken by a prospective buyer, especially
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to establish its assets and liabilities and evaluate its commercial potential. There are many criteria and variables to consider when evaluating and comparing franchise opportunities, but none as important than franchisee validation. What existing franchisees have to say about the franchise provides contextual reality to what you see on a website, promotional material, and in an FDD. In summary, here are the recommended priorities in your franchise acquisition process: 1: SELF-EVALUATION Ask yourself what you really want to achieve by owning a business. Things like, what hours you want to work, what kinds of things are you good at and like to do, how much money can you afford to invest and what returns will you need to produce from the business? Where you want to live and
operate your business, as well as what your exit plans are in the future. 2: FINANCING Do you have a clear idea of how much money will be available to you. Unless you're sitting on a mountain of cash, start this process early on because the answers can be quite different from what they were just a few months ago. 3: EVALUATE INDUSTRY CATEGORIES Focus on industry groups or categories. Based on your impression of each of these segments, ask yourself if it appears to meet the desired criteria you identified in Step 1; If it doesn't, cross it off. You'll end up with a list of possible industry segments. 4: LOOK FOR RECESSIONRESISTANT AND ESSENTIAL SERVICES SEGMENTS Take your list of possible industry segments and ask
yourself a simple question: "Do I believe this is a business that will continue to do well regardless of the state of the economy?" This will be true of businesses like damage restoration, fast food, senior care or hair cutting, but it may not be true of others like optional expensive services businesses or upscale retail. Cross off industry segments if you believe that they're not recession resistant so you give yourself the best possible chance for a successful decision. 5: START IDENTIFYING INDIVIDUAL FRANCHISE COMPANIES Once you've narrowed down the list, look at individual companies and pick one that
you think is representative of the category. Try to select companies that will have territories available in your desired area. From this list of companies, pick a few that seem most interesting or attractive to you based on your criteria identified in Step 1. 6: REQUEST PRELIMINARY INFORMATION FROM FRANCHISORS After selecting a few companies that match with you, contact the companies and request basic franchise information. This might be on a website or in brochures, videos or other materials they may send you after you visit with one of their development staff. Review the preliminary information from
each company to determine if, based on this further information, the company still appears to meet your criteria and is worth spending more time on. 7: STUDY THE FDD After your initial contacts and the submission of a qualification questionnaire, the franchisor will typically provide you with its Franchisor Disclosure Document (FDD), an FTC-mandated disclosure document. The FDD contains extensive information about the franchise, including the history of the executives, any litigation the company has experienced, the names and contact information for the current franchisees, and a copy of the franchise contract. Review this information carefully and get any questions you have answered before you proceed to the next step. 8: CALL EXISTING FRANCHISEES The best source of information for any franchise system is the existing franchisees. Contact franchisees and ask them all about the business, their lives as franchisees, and what they think of the company. This is a good tool for evaluating how well a franchisor supports its franchisees, whether the startup cost projections are realistic and how effective the provided marketing materials are. 9: VISIT THE FRANCHISOR Assuming everything else checks out, your second-tolast step is usually a visit to franchisor headquarters. This is a great time to get any final WWW.FRANCHISEJOURNAL.COM | MAY 2020
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Also, keep in mind that they will be carefully evaluating you as a potential franchisee at the same time, so this final judgment is a two-way street.
questions answered and to meet the people who will be helping you get your business up and running. Though this may seem like a formality, it's a vital check-and-balance to make sure you are completely comfortable and confident in the company you are about to enter into business with.
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10: MAKE YOUR DECISION Once you've completed your Due Diligence on all of your final franchise opportunities under consideration, it's time to make your final decision. You can be sure that you've made your choice for all of the right reasons, that this franchise opportunity does all of the following: • Matches your financial resources • Provides you with the lifestyle you imagined
• Uses your particular skills and experience • Provides a recessionresistant product or service • Has a majority of happy and successful franchisees • Employs an experienced and enthusiastic staff of personnel who will help you achieve your dreams of business ownership success ABOUT THE AUTHOR Seth Lederman, 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. Contact him at seth@ thefranchiseconsultingcompany.com or call 312-307-1297.
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FITNESS EDITION
Veterans, Remember “PT”? It Could Be Your New Business! by Dave Cooley, Consultant, The Franchise Consulting Company
O
k, for those of you reading this who aren’t veterans, “PT” stands for Physical Training, something every member of the military has had to go through … usually daily. Most commonly, all of the troops “fall out” for PT on a parade field or other large area and the exercise leader starts with something like this:
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“FIRST EXERCISE WILL BE JUMPING JACKS!” Position of the exercise, MOVE!” On the command of “move” the troops snap to the beginning position of the exercise. “Exercise, BEGIN!” “One, two, three, four …” Veterans, “Push Ups, Squat Thrusts, Sit Ups, Jumping
Jacks, Pull Ups, timed runs” … remember those? For many who served in the military, the regular routine of exercise remains in their daily lives to this day. A disproportional percent of the adult population who regularly exercise are military
veterans. Perhaps that’s because they learned the benefits and importance of regular exercise while in the military. A great number of veterans are lifelong fitness buffs and therefore, many veterans should consider the fitness industry when considering franchise options. The industry statistics website, statsta.com, reports that the U.S. fitness industry is an estimated $30 billion market. More, this site reports the United States is the single biggest market worldwide not only in terms of revenue but in regards to the number of members in health & fitness clubs as well. We all know the “big box” fitness franchises, such as Planet Fitness, and the equally as large corporate-owned fitness brands, such as 24Hour Fitness, and these brands remain strong. But, the big box fitness businesses are rapidly losing market share to boutique fitness brands. Matt Dixon, in the website, toptal.com, reports the rapid rise of boutique fitness brands offers valuable lessons to young, growing companies: dominate a niche. Offering a highly unique experience and cultivating close relationships with customers, these brands built loyal, high-paying customer bases. Orange Theory … heard of them? Of course you have! This boutique fitness franchise is almost sold out nationwide – proof boutique fitness is indeed a viable industry! The boutique fitness industry in
franchising is populated by many, many strong business models that appeal to various different segments of the fitness market. From franchises focused on Pilates … to yoga … to boot camp exercising … to boxing … to dance-based fitness, the range of boutique fitness franchises is very wide. There is a fitness franchise to fit just about anyone’s interest, including the interests of franchise owners. If you are a veteran who values exercise and fitness, you owe it to yourself to investigate the fitness franchise industry! In addition to fitness being a $30 billion industry and an ever growing percentage of that large market seeking boutique fitness options, by and large, fitness franchises are affordable and profitable to own. Most boutique fitness franchise brands require only a relatively small facility, making the cost to buildout a facility a manageable expense. More, many fitness franchise brands have pre-opening marketing campaigns that result in many, many members already signed up and waiting for the new facility to open! If you are a lifelong fitness person, you should seriously investigate the fitness franchise industry. You just might find a business you love!
VETERANS: FALL OUT FOR EXERCISE!
ABOUT THE AUTHOR Dave Cooley is a retired USAF officer who has served in executive positions in franchising for the past 20 years. This is Dave's 8th year as a consultant with The Franchise Consulting Company. Contact Dave at 720-259-9475 or dave@ thefranchiseconsultingcompany.com.
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EXPERT ADVICE
THE KEY to the Success
of Any Business
by Janice Charles, Consultant, The Franchise Consulting Company
T
he KEY to the success of your business is all around you. It surrounds you every day. It’s right outside your f ront, back and side door. It’s your community. Sound simple? It really is! Your community can make or break your business. Let’s look at 2 similar businesses. This can apply to an IT business, restaurant, Realtor or window cleaning business, literally any business Scenario One – you call or visit a business. They are professional, provide you with the service or product you requested, your transaction went smoothly, and they thanked you for your business. Very pleasant and you left satisfied with your visit.
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Scenario Two – the same as Scenario One and….the Owner makes the time to talk with you personally. They tell you how much they appreciate you as a customer. In fact, they tell you they read about your child and their recent accomplishment(s) and congratulated you and your child for the outstanding honor. As you continue to talk, the Owner asks more about the organization that your child
belongs to and asks how he can support it. You respond that you need more people involved in an upcoming event and how more people would result in continued success for the kids. The Owner responds that he’s happy to help. In fact, he is connected with multiple others that could help get the word out. Let’s think about both scenarios. If you are a consumer, which business
PEOPLE PATRONIZE BUSINESSES WHERE THEY “FEEL” VALUED AND APPRECIATED.
are you going to revisit and tell your friends about? Why? It’s the personal connection. People patronize businesses where they “feel” valued and appreciated. As a Business Owner, how much did it cost you to have this conversation and help your customers? Absolutely nothing! Let’s look at a different example that you can also do at NO COST. You read an article that the local High School is short on staff. One might think that this is a shame…budget cuts again, right? As a Business Owner there is a LOT you can do.
Here’s a list: 1. Tutor/Mentor a student 2. Use your business as a laboratory for students 3. Help business classes with financial statements, marketing plans and project management 4. Hire students to work with you as an internship 5. Help publicize events at the High School to your customers Five simple ways you can help and I’m sure you can think of many more. Not only is helping your local schools the right thing to do, it will also increase your business. Word of mouth is invaluable.
While running 13 McDonald’s restaurants in Colorado, our community involvement netted about an additional 10% in sales vs. other McDonald’s who were not working in their community. When McDonald’s Corporation asked what we were doing, it was simply getting involved in the community. Get involved – it will be more rewarding than any increase in sales you will receive. ABOUT THE AUTHOR Janice Charles is a franchising veteran with over 40 years of franchising experience. Janice can be reached at: janice@ thefranchiseconsultingcompany.com
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at the world's biggest virtual Franchise Expo! For dates and registration details go to: www.franexpousa.com
FITNESS EDITION
LEGENDS BOXING: Results for Everyone by Mike Samson, Brand Director, Legends Boxing
WHAT IF YOU HAD THE OPPORTUNITY TO NOT ONLY HELP HARDWORKING, EVERYDAY PEOPLE MEET THEIR HEALTH AND FITNESS GOALS, BUT PROVIDED THEM WITH A PLACE THAT THEY BECAME PROUD TO CALL THEIR SECOND HOME?
Meet Legends Boxing, where our members come for the workouts, and stay because of the sense of belonging that they find within the Legends tribe. Our franchisees are drawn to Legends not just because it’s a cool and rapidly growing form of fitness, but because of the proven impact that they are able to make in the lives of others. Legends Boxing was founded on the premise that ANYONE could learn the techniques that professional boxers use in the workouts in order to reach their own health and fitness goals. Since one of the values that Legends lives by is “Real”, we train all of our boxing coaches how to teach members real, USA boxing techniques in a one-hour fitness class setting. These classes are designed by National Head Coach and Co-Founder, Andrew Scott and are truly designed for everyone. Legends welcomes ALL ages and ALL fitness levels and we uniquely have an almost 50/50 membership ratio of male to female.
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An enthusiasm for fitness is only one of the reasons that aspiring franchisees end up choosing Legends. Another reason why many of our franchise owners decided to buy their first gym is because of the work life balance that Legends has to offer. Our business model allows the gyms to be run in one of two
ways: in an owner-operator model, where the owner is heavily involved, or in a semi-passive model, where the owner hires a general manager to run the day to day operations. Our franchisees are proof that our semi-passive model works– we have franchisees who have grown and scaled
to successfully run multiple boxing gyms while managing from a high level role as opposed to working in the gyms day in and day out. This gives them the work life balance that they desperately craved before achieving their dreams of business ownership. Another key reason that Legends is a hot choice in the franchise industry right now is the amount of prime real estate that is still available. The ground floor opportunity with Legends combined with a proven, and still-emerging industry means that gyms that open in these available hotspots are destined to be successful. The level of support and guidance that Legends has to offer also makes our gyms an attractive choice for those without a strong background in business ownership or even boxing and fitness.
No marketing experience? No problem. No real estate experience? We’ve got you taken care of. Never tried a boxing workout before? You guessed it– we help there, too. Once you become a franchisee with us, it starts with real estate support. You are never alone in selecting a location, negotiating a lease, and finally bringing your gym to life. Our real estate team is highly experienced, and works hard to help you get the best rates possible, in turn bringing in the most ROI possible. And during build-out, you only have to work with a single point of contact to bring everything together. While you get ready to open, we’ve got marketing support and training on your side, too. We bring you and your coaches out to our corporate offices and teach you everything they need to know to run a
successful business, teach a boxing class that will leave your members raving, and ultimately grow and retain consistent revenue. In the meantime, our marketing team will be busy bringing in pre-sale memberships before your doors even open. And that support will continue afterward too, always driving in new leads for you to boost your membership levels. At Legends, we look for franchisees with an enthusiasm around fitness and changing lives, consider themselves early adopters, and have a goal to run a profitable and successful business with the support and guidance of the corporate leadership team. Do you fit that bill? Let’s start the conversation, send us an email at legendsboxingleads@ zeesprout.com to learn more about the opportunities that await.
WHEN LIFE HITS HARD, LEGENDS HELPS YOU FIGHT BACK.
ABOUT THE AUTHOR Mike Samson is the brand director for Legends Boxing. After discovering the franchising industry, he became passionate about helping aspiring business owners achieve the freedom and work life balance that they craved while at the same time being able to make an impact on the community around them. 651-500-1651 www.legendsboxing.com
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REAL. RESULTS. BELONG.
REAL USA boxing. Find the RESULTS you want. BELONG to more than just a gym.
Legends boxing is a class-style gym that will provide professional insight to anyone, reguardless of skill, phyisique, or experience. We believe boxing is a sport and skill that can belong to anybody, for everybody.
BENEFITS OF BOXING FITNESS • Learn a real, life long, every-day skill • Earn a greater sense of Self-Confidence • Get in shape without traditional gym monotony • Find friends for life with the Legends Tribe.
for more information, or to sign up for your free workout visit legendsboxing.com
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COVID-19 GUIDANCE
Career Advice from
by Mike Martuza, Consultant, The Franchise Consulting Company
ver the past couple of months everything has changed and will probably continue to change for the foreseeable future. While listening to the radio the other day I heard two songs about change that were played over the course of
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about 10-15 minutes. The first song was from the 1960s and second from the mid-2000s. Being a child of the sixties I always found a lot of inspiration in the songs of social change that dominated the later part of that decade. I began thinking about the lyrics and the different
messages and wondered how people believed they could affect change not only in the world but in their own lives during this difficult time. The first song was Bob Dylan’s “The Times They Are a- Changin'”. The first verse sets the expectation of how change will occur.
Mayer takes a very negative view of our capability to affect change and saying that we should sit back and hope that it happens. If you want something better than what you think lies along your current path, do you follow Dylan’s advice and accept that change will occur, grab it and take control? Or, do you believe more in Mayer’s vision, that you are just along for the ride and are essentially helpless to change anything, therefore you’ll just wait around for the world to change and provide you with a better job, more money, a better life, etc? In my experience it has always been those who affect, not those who wait for, change who come out better in the end. Dylan’s message is simple, the world is changing and if you don’t grab the bull by the horns and look out for yourself you’ll be worse off. The second song was John Mayer’s “Waiting On The World To Change”. The following is the opening from that song:
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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FRANCHISE NEWS
How Technology and Customers are
Shaping the Franchise Model
by Rick Morgin, Consultant, The Franchise Consulting Company
The franchise landscape is changing quickly. New business opportunities are emerging within traditional industries, creating what we refer to as disruptions. This is good news for both sides of the franchise model. Companies ready for expansion can more easily consider franchising, and entrepreneurs eager to own a business can find a greater range of opportunities. What is causing this shift, this disruption? Simply put it’s due to advances in science and technology. Advances in science and technology are allowing businesses to develop innovative new products, attract a greater number of customers, and provide
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increased convenience to those customers. What this means is traditional offerings are being broken down into highly convenient and customized products and services consumers can purchase with the touch of a button. The fitness industry is one example where we see disruption and opportunity. If you think about traditional fitness service offerings, Big Box gyms come to mind. If we apply advanced technology, improved customer access and greater convenience to this industry, we find many new offerings. For example, specialized fitness concepts have developed a segment of the fitness industry
known a s boutique fitness. Specializing in a specific fitness category such as Yoga, Indoor cycling, Rowing, or Stretch and building a studio in an aesthetically pleasing, smaller and more personable footprint, boutique fitness has grown 450% year over year since 2010. Boutique fitness concepts create an intimate and almost tribe like following. This loyal customer following develops because the franchises operating in this space empower their managers, trainers, and staff. This team utilizing technology creates the customer experience that consumers are looking for in new fitness concepts. Customers can use
smartphones to access the app and schedule a workout based upon location and desired time frame. Several fitness franchises are making their workout content available to their members (and non-members) through the internet. This outreach is important with our current
track record is in attracting, empowering, and retaining thousands of their fitness instructors will benefit the franchisee in their system. Look for a company that has the highest of brand standards and marketing programs and guidelines. What this means is that, the company provides
disruptors and go beyond the maintenance and collision repair businesses. It’s exciting to see this level of disruption across traditional industries. So many new opportunities are emerging for both franchisors and franchisees. Additionally, just as we are seeing greater
environment due to COVID-19. For example, The GymGuyz holds a live workout session on Fridays 2pm EDT/11am PDT on Facebook. When investigating the fitness industry, potential Franchise candidates should find the company whose strengths give them an edge in this field. A company whose strengths are in real estate, labor, marketing and branding, and build-out has mastered the most difficult aspects of opening a franchise location. A dedicated team devoted to real estate who proactive searches for the right location with the right demographics will simplify this part of the process. A company whose
the bulk of the marketing programs delivering the brand standard which allows the franchisee to focus on the customer experience. A brand or company who has a standard footprint has also figured out efficiencies in the build out process, this reduces a franchisees time to their grand opening. Other examples of change can be found in the beauty and fashion industry, where blow-dry bars, on-call stylists, and gown rentals are disrupting traditional salon and boutique businesses, bringing increased convenience to more customers. The automotive industry has fantastic business models that are industry
convenience for consumers, we are seeing greater flexibility for businesses. More aspiring entrepreneurs can enter the franchise market with varying levels of investment and commitment. ABOUT THE AUTHOR 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 www. thefranchiseconsultingcompany.com
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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
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Proud to offer $10,000 Discounts to Military Veterans, First Responders and ethnic minorities
Recurring Revenue
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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
CAREER ADVICE
Use Your Fear— Pivot Your Career by Faizun Kamal, Consultant, The Franchise Consulting Company
WE ARE STUCK.
Quarantined inside our homes, the days starting to become a blur. We are worried for our livelihoods, wondering if we will still have a job when the pandemic ends. How will we pay our bills and provide for our families? As dark fearful thoughts take over, it very quickly becomes a downward spiral. When you feel like you're at the end of the rope, tie a knot and hang on. Your fears are a message. You may be at the end of a chapter that's ending and not realize that you are at the beginning of a new one... In 2015, after almost a decade in the corporate world, I was laid off. I did not have a plan or a roadmap for my future. I was not sure what the next chapter of my life would look like. The one thing that I was totally certain about and never wavered on, however, was the quiet determination that I was never again going to be an employee. I was no longer willing to trade my time, my freedom, my soul – to build someone else’s company, someone else’s future. You see, like so many people we all know, I got a job. Not because it was my calling. Or because I felt so
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DO YOU FEEL LIKE YOU HAVE SO MUCH MORE TO OFFER THE WORLD AND THAT YOU ARE LIVING YOUR LIFE AT HALF MEASURE?
passionate about it. I got a job that paid really well. Don’t get me wrong. Money is important. It allows us to take care of our families and our responsibilities. However, what I learned from this is that until my inner values aligned with my external actions, I was never going to truly be fulfilled or happy. So when my boss informed me about my lay-off, I knew this what I had been waiting for. Now, the timing wasn’t right because we had a little baby and we needed health insurance and bills still had to get paid and, and, ... and, yet, at the same time, the timing could not have been more perfect. In the months that followed, despite huge odds and twists in the path, I found my path, my calling. I discovered the world of franchises. I started a franchise consulting business to help my clients redesign their careers & lives through a franchise business of their own. I now work in my zone of genius everyday. I work for a purpose that is bigger than myself. I love my clients and see myself in every one of them. And I would not trade my life now for anything in the world. As you find yourself living through a global pandemic, acknowledge the feelings that arise in you as you take
inventory of your life and career. > Have you been unhappy in your job for years? > Have you lived in constant fear that you may be laid off at any time? > Do you feel like you have so much more to offer the world and that you are living your life at half measure? As you spend your days at home surrounded by family, this is the perfect time to begin exploring franchise ownership. If you have dreamed about escaping the 9-5, generating real wealth and finally living life on your own terms – stop dreaming and start your exploration. As
the poet Rumi said: “Why do you stay in prison when the door is so wide open?” If you feel a yearning inside you for something different, better, bigger .... pay attention to it. It may be beckoning you closer to your best life. Oh, and the timing of it all is never right. It’s perfect.
ABOUT THE AUTHOR Faizun Kamal is a nationally renowned public speaker, best-selling author and sought-after franchise coach. Her best selling book, “The Right Franchise for You: Escape the 9 to 5, Generate Wealth, & Live Life on Your Terms”, is the guide that thousands of clients have used to find their “perfect fit” franchise! info@thefranchiseconsultingcompany. com
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HONORED
TO HAVE THE
highest
WOMEN
consultants
WE DO...
s
percent active OF
in the
INDUSTRY
and we're proud!
FITNESS EDITION
Fitness
Through The Age
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s
es
by Nick Neonakis, Founder, Franchise Journal
R
unning was probably the earliest form of physical exercise practiced by our earliest ancestors. Typically they were running for their life away from wild animals. “Run for your life!” Physical development followed a natural path that was determined by the practical demands of life in a wild landscape as well as the vital need to avoid threats and seize opportunities for survival. One’s movement demands consisted of locomotion, the manipulation of tools and natural objects (rocks, tree limbs, etc.), and defense. To survive in a harsh environment full of natural and human obstacles and enemies, early man had to know not only how to run, but also walk, balance, jump, crawl, climb, lift, carry, throw and catch things, and fight. We can also safely assume that playful or creative moves like early forms of dancing were performed when bellies were full and predators weren’t around. Man’s transition from nomadic hunter-gatherer to farmer led to dramatic changes in his physical activity. The numerous demands of growing food and raising cattle meant a lot of chores and a lot of daily labor for farmers. But these tasks were largely repetitive, and required a very limited range of movement. Between 4,000 BC and the fall of the Roman Empire in 476 AD, civilizations rose and fell through war and conquest. Assyrians, Babylonians, Egyptians, Persians, and later on, the Greeks and Romans all imposed physical training on boys and young men. The purpose? Preparing for battle. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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FITNESS EDITION
ANCIENT MILITARY TRAINING had similarities to the movements performed in nature by our cavemen brethren, but with more structure and a different end goal.
Ancient military training had similarities to the movements performed in nature by our cavemen brethren, but with more structure and a different end goal. Young men practiced fundamental skills such as walking and running on uneven terrains, jumping, crawling, climbing, lifting and carrying heavy things, throwing and catching, unarmed fighting, and weapons training.
Records of athletic competitions exist from ancient Egypt, and of course, the ancient Greeks famously created the first Olympic games. 66
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Civilized populations valued physical culture for sports as well. Records of athletic competitions exist from ancient Egypt, and of course, the ancient Greeks famously created the first Olympic games. Not surprisingly, these early sports were all based on practical, natural movement skills and were fundamentally related to the preparedness needed for war — the Greeks strove to best each other in running (sometimes with armor and shield), jumping, throwing (javelin or discus), and fighting (striking and wrestling). The Renaissance Era (from around 1400 to 1600) prompted a much greater and open interest in the body, anatomy, biology, health, and physical education. Not surprisingly, war and battle preparation were a major reason for exercise.
In Scotland, the Highland Games began during the Romantic trend of the 1830s, and included traditional physical challenges distinctive to Scottish culture such as caber tossing, hammer throwing, and the stone shot put, along with running, wrestling, and jumping. As the demands on war evolved, fitness became more structured and an interest in physical fitness and health became more prevalent. In the modern era, fitness is constantly evolving and has gone through multiple trends as the marketing of fitness regimens has become a hallmark of the commercialization of exercise. Over the past 80 years, we have gone through a variety of fitness phases, some of which laid the foundation for modernday exercise routines.
FITNESS EDITION LET’S TAKE A WALK THROUGH SOME OF THE MOST POPULAR WORKOUT TRENDS OF THE PAST EIGHT DECADES!
1940s STRETCHING Exercise for women in the 1940s was characterized by stretching. Jumping jacks were adopted by the U.S. army because of the low level of fitness amongst drafted soldiers, sparking this exercise to become popular among men. Jumping jacks and toe-stretches were thought to keep bodies toned and in shape.
1960s VIBRATING BELT
1950s HULA HOOP The hula hoop was a toy trend that caught fire the moment it hit America. More than 400,000 were sold by 1957! Granted, it was classified as a toy when it first hit stores, but hula hooping for 30 minutes can be a great full-body workout. Nowadays, adults can use a weighted hula hoop as opposed to a plastic one if they want to feel the burn!
It seemed to be a widespread belief in the ’60s that you could jiggle away unwanted fat. The machine originally gained popularity in the early 1900s, but had a big comeback in the ‘60s. You would loop a wide belt around any area problem area, turn it on and bam! Your fat would magically “melt” off. No sweat, no problem! Except that it did not really work. People eventually came to realize this, and the vibrating belt faded away.
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FITNESS EDITION
1970s JAZZERCISE The ’70s brought in a new, high-intensity form of exercise called Jazzercise, which is still practiced today (although not as widely). Jazzercise is a mix of jazz dance (no surprise there), ballet, Pilates, yoga and kickboxing. The routines are usually set to a popular song of the instructor’s choice. This trend was the beginning of choreographed exercise set to music.
1980s AEROBICS Aerobics sprung up as a spinoff of Jazzercise. While the two exercises are similar, aerobics is less of a dance routine than Jazzercise. It was originally invented in the ‘60s, but it was not put on the map until one of the most famous athletes of all time, Jane Fonda came out with a book and aerobics workout tapes. She also pioneered the use of leg warmers not just for exercise but also as a sporty casual look that says “I workout and look good doing it”.
1990s TAE BO Karate master Billy Banks took over the fitness world in the ’90s. He created Tae Bo, a highintensity cardio workout that combines martial arts, boxing, dancing and hip-hop beats. At the height of its popularity, over 500 million Tae Bo videos were sold. The only thing missing was more cowbell.
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FITNESS EDITION
1990s SPINNING Spinning classes started heating up in the 1990’s and it was the beginning of a workout revolution. With the addition of upbeat music, Soul Cycle was born. Fast forward to modern day where spinning classes can be found at almost every gym.
2000s ZUMBA Building on past dance-inspired workouts, Zumba emerged as a Latin-inspired workout. This fitness style mixes salsa, tango, bachata and flamenco dance styles to upbeat Latin or pop music. Zumba classes can be found in most gyms, and the exercise is popular in 180 countries worldwide.
2010s CROSSFIT CrossFit was born in 2000 and focuses on conquering obstacles and training the whole body. It is a mixture of gymnastics, weightlifting, pullups and calisthenics. The first CrossFit gym originated in Santa Cruz, California. Now, there are thousands of CrossFit gyms and trainers across the country and a huge community has formed around the fitness trend.
TODAY The fitness industry is dynamic and all encompassing. Companies like XPONENTIAL fitness have multiple brands representing various disciplines that give devotees the ability to exercise in various mediums from Yoga to Pilates to Spinning. While the industry has slowed due to COVID, there is no doubt that exercise and fitness is something that will be with us forever.
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200 + TERRITORIES AWARDED
SOLVING FITNESS FOR THOSE 50 AND OLDER The most under-served, dissatisfied and fastest growing segment with disposable income to spend!
SMART.
SIMPLE.
SCALABLE.
Utilizing Exerbotics, our proprietary equipment and technology platform, we offer the most advanced fitness and exercise solutions in the world. This allows us to work with clients of all ages and fitness levels. The data-driven results our clients achieve drive high retention and satisfaction. As an owner, you are delivering a workout that isn’t able to be replicated anywhere in your market.
Exercise Coach represents a small-footprint and low-cost alternative to the large gyms and group fitness studio franchises. A fully functional Exercise Coach can be located in as little as 800 square feet and can be opened with 2-3 employees to start. Once opened, there are very few operational challenges. Just market, sell and grow your business while managing your coaching staff and spreading the message of fitness in your community.
Perfect for multi-unit franchisees, all business systems are tracked by an industry-leading CRM, allowing real-time access to crucial business and sales data. Each location can be fully managed by a Lead Coach, freeing up the owners’ time to work on the business, not in it. And best of all, a turnkey marketing system delivers consistent lead flow and we offer sales training and a custom sales platform to empower your coaches to follow up with each prospect and close more clients.
STRENGTH CHANGES EVERYTHING™ exercisecoachleads@franchisefastlane.com
531-333-3278
FRANCHISEJOURNAL.COM/SUBSCRIBE
PILLAR TO POST To learn more about a Pillar To Post Home Inspectors franchise go to: www. pillartopostfranchise. com
MOTHER’S DAY TRIBUTE
S
This mother/son duo is helping homeowners make one of their biggest purchases
hauna Barker and her son, Justin Barker 21, launched a family-owned and operated Pillar To Post Home Inspectors® franchise in 2019 because they were ready to work for themselves.
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Shauna was drawn to the home inspection industry, having owned and renovated rental properties in the past. The territory they service contains the metropolitan areas of Kansas City on both Missouri and Kansas sides.
“I enjoyed my property business. I like homes in general; the building, decorating and inner and outer workings of a home has always interested me,” Shauna said. Another aspect Shauna enjoys about home inspection is how she’s always learning. “Some of it can be humorous when you see DIY repairs or renovations,” she added,
F E ATU R E
“and it’s also interesting to see how home building and renovating has improved over the years.”
P
Life Before Pillar To Post rior to owning a Pillar To Post franchise, Shauna was the owner/operator of a transport company, as well as the CFO for a sunglass company. In her free time, Shauna enjoys spending time with her family playing board games, card games and putting together puzzles. She loves the outdoors and spending time with friends.
educated decision when buying a home. Prior to owning his own Pillar To Post franchise, Justin spent years working as a diesel technician. This is where Justin learned a lot about attention to detail and quality work, which are skills he honed into a career as a professional home inspector. In Justin’s f ree time he enjoys working on and upgrading vehicles and hopes to someday have a garage that’s bigger than his home. “We come f rom two very different prospectives due
“We come from two very different prospectives due to our age, experiences, and education and with those difference we make a ”
GREAT TEAM.
“The Barker family is competitive and we like to challenge each other, but at the same time we encourage each other to continually become better people,” Shauna said. Justin Barker, 21 teamed up with his mom, because they both wanted the freedom to work for themselves while helping others. What Justin most enjoys about home inspection is spending time teaching people important details about home care and helping them make an
to our age, experiences, and education and with those difference we make a great team. Justin is constantly expanding his learning and knowledge, I am putting my experience to work in marketing and networking, and together we push each other to persistently improve. Both of us recognize family must be separate from business, great communication is a must, and we appreciate this opportunity to work together,” Shauna said. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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FITNESS EDITION
WHY BUY A GYM OR
FITNESS CENTER BY CHRIS OTTER
When considering franchise and business ownership opportunities, we know that you can choose from many industries and many concepts. Here are 8 reasons why you should consider business ownership in the fitness industry. 1. RECURRING REVENUE/ CUSTOMER RETENTION
Unlike many business models that are a “one and done” purchase that require the business owner to constantly spend advertising dollars to compete for consumer expenditures every day - fitness offers the opportunity to create a revenue stream that accumulates through recurring monthly membership fees to increase income potential and build greater equity in your business. Most membership fees are charged monthly through auto-debits to your customers. This provides a predictable, recurring, and bankable revenue stream. Most gyms provide incentives for members to sign monthly or yearly
agreements. These membership packages often come with perks and bonuses such as group classes, gear or clothing discounts. In addition, fitness offers one of the highest average customer retention rates in all of franchising – typically ranging from 6+ mos. to 4+ yrs. As it is said, it is much cheaper to keep a customer than find a new one!
2. HIGH ROI BUSINESS
While there will certainly be a number of startup and carrying costs in opening any new business, fitness can offer a very attractive ROI and cash-on-cash return for the business owner. The availability for preferred financing terms, accelerated depreciation on equipment, WWW.FRANCHISEJOURNAL.COM | MAY 2020
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recurring revenue from membership sales, all contribute to an appealing business investment. Coupled with the benefits of a franchise system, shared cost benefits, proven systems and efficiencies, you end-up with a business that is not only fun to own, but financially attractive based on investment, income and equity potential.
3. EQUITY/ WEALTH CREATION One of the biggest advantages of owning your own business
is creating wealth through the asset value of your business upon resale. To put this in perspective twenty percent of the affluent all over the world are retirees. Of the remaining eighty percent, more than two-thirds are self-employed owners of businesses. Simply put, most of the affluent in America are business owners, including self-employed professionals. Think about this - in America, fewer than one in five households is headed by a self-employed business owner,
but these self-employed people are four times more likely to be millionaires than those who work for others. If you are considering business ownership and want to build wealth - one of the best ways to maximize the equity in your business is through recurring revenue that is less to prone to disruption as business buyers will pay more for a predictable, recurring revenue stream. The fitness industry is one of the very best in franchising for building recurring revenue through long-term memberships and high customer retention.
4. MULTIPLE
REVENUE STREAMS Fitness offers very attractive multiple revenue streams through recurring monthly membership fees, personal and class training, merchandise sales including fitness apparel, work-out gear, supplements and more. Depending on location, demographics and desired investment level, you can choose from a variety of “boutique” fitness concepts including Yoga, Pilates, cardio boxing, Martial Arts and more, as well as traditional fitness such as strength training and cardio for men, women and children to deliver an all-inone neighborhood fitness center for the entire family.
5. STRONG GROWTH INDUSTRY Fitness is not a fad or prone to changes in consumer demand. It cannot be replaced by technology or outsourced overseas. According to the International Health, Racquet
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& Sports Club Association (IHRSA.com), it is a recession proof $87 billion industry that has enjoyed a 20+ year average annual growth rate of 8% per year despite a recession and is expected to continue to grow at an even higher rate as more women and seniors are joining fitness centers in the pursuit of a longer, healthier lifestyle. Furthermore, “boutique” fitness is one of the fastest growing sectors in the U.S. economy growing at 450% per year since 2010 while the martial arts industry is growing at 2X the rate of general fitness. The ever-increasing desire to improve one’s health and wellness will always create a demand for fitness facilities. While there has been an increase in online training resources and home gym equipment, the need for hands-on personal trainers, social interactions and sense of community that gyms provide will always be in demand. Members often visit their gym simply for the personal interaction of other members, with group classes being a leading influence for many member visits. Unlike many sectors or latest fad, the basics of the health and wellness industry will never change or fade away. Structured exercise has been around for hundreds of years and will be relevant for our bodies forever. Although there may be a need to adapt
new training concepts and equipment from time to time, the increased awareness of the benefits of physical activity impacts all age groups and genders expanding consumer demand greater than ever before. With people paying more attention to a healthier lifestyle and willing to spend more money on their health and wellness, the need for fitness facilities will continue to grow.
6. LOW OVERHEAD/ FEW EMPLOYEES Fitness has little to no cost of goods (COG’s) and little to no variable expenses producing excellent net margins. In addition, labor costs are relatively low as fitness typically requires few employees – often only 1-2 during non-peak hours depending on the concept. As a result, fitness does not have the headache of constantly recruiting and managing many employees. Plus, unlike most servicebased businesses - fitness enthusiasts love what they do! For most, it is much more of a chosen career path (many will have fitness related college degrees or professional accreditation) vs. simply being another job that they will frequently change. In fact, many times, when they aren’t being paid to train, you will still find them in the gym, working out themselves or socializing with clients
offering insight on how to improve their physical, mental and emotional fitness. As a result, if you provide the right environment, your employees are more likely to remain loyal and help build a positive culture for your customers. In turn, your members will refer others (i.e. low cost of customer acquisition) building your revenue base and increasing customer retention.
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7. SIMPLE BUSINESS MODEL
Fitness is a very wellestablished proven industry without the many moving parts found in other industries. Fitness offers a predictable, sustainable revenue stream through recurring memberships and multiple revenue sources that can be annuitized and easily duplicated across multiple manager-run units.
8. FUN BUSINESS!
Unlike many sectors like food or automotive repair, fitness is a fun and rewarding business to own and operate! It is a business that you can enjoy and allow you to turn your passion into profit by helping others transform their lives through health & fitness!
So, why should you consider investing into a fitness franchise? First and foremost, it is well established that a proven franchise system provides the highest potential for success.
Why? Consider the amount of time and energy that would be needed in developing effective advertising, marketing, management systems, location site selection and lease negotiation, buildout specifications, equipment research, financing, supplier relationships, class programs, etc. necessary for successful brand penetration and efficient operations. For most, the cost of royalties associated with a franchise is a well thought out and worthwhile investment in the success and prosperity of your business, while providing the “recipe for success” of an established franchise system that has been successfully proven and replicated multiple times in diverse markets. Let’s look at some of the ingredients of a franchise’s “recipe for success” and why a franchise will save you time and money and help you be more successful:
Why Should You Consider a Gym/Fitness Franchise?
1. BRAND AWARENESS
A critical key component of any business is the ability to attract, acquire and retain new customers. Being part of an established franchise brand provides your potential customers with a name they will know and trust – so they are more likely to visit providing your business the opportunity to deliver a great experience and acquire longterm members. In addition, a franchise provides the proven operating systems that will give your customers a clear understanding of the memberships, packages and services provided, as well as the peace of mind and security of consistent systems that are well accepted across the country. Have you ever wondered why there are so many Planet Fitness locations, or how come Orange Theory or Anytime Fitness gyms seem to be everywhere? It’s the same reason there are multiple Domino's Pizza's, Jiffy Lube's or Sport Clips in almost every major city. It’s because successful franchises have the brand recognition to attract more customers, as well as the shared operating systems in place to retain more customers and make them comfortable that your business will be around for the long haul.
2. HIGHER MONTHLY RECURRING INCOME
As mentioned, one of the most attractive aspects of owning a fitness/gym
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4. MULTIPLE OWNERSHIP MODELS
business is the ability to create recurring revenue through long-term membership fees, thus building overall income potential and greater equity. Being part of a national franchise system will allow you to attract and retain more customers to increase revenue while also increasing the number of new customers that may be relocating to your area and transferring their existing membership to your club.
3. BUILD MORE EQUITY
Franchises typically demand a higher resale value in the market. Why? It’s simple - would you rather buy a Subway or some unknown independent sub shop? Business buyers benefit by stepping into a known franchise system with the proven systems and training that is provided to ease transition of ownership vs. purchasing an independent business that may lose
customers and/or employees due to a change in ownership or needing to reestablish vendor relations, supply chain, etc. In addition, franchise owners enjoy the advantages of greater brand recognition, established marketing systems and assistance, comprehensive training and ongoing support, economies of scale, purchasing power, and more - of a national franchise system. As your clientele and business grows and becomes more profitable, so too will your equity. With recurring revenue from membership sales, predictable and sustainable income makes owning a fitness franchise very attractive to potential buyers.
While it helps if you believe and live the fitness lifestyle, not all franchise owners are personal trainers or hardcore fitness enthusiasts. More important than fitness experience is business acumen. With established business systems, operational procedures, and class programing in place, franchises offer very attractive investment opportunities for owner/operator, semiabsentee and multi-unit ownership. Even if you have minimal to zero experience in the fitness industry, you can still successfully own a gym or chain of locations.
5. WIDE RANGE OF INVESTMENT LEVELS From Bootcamps to Big-Box Gyms, the cost of ownership can range from $150,000 to $1,500,000. Depending on your financial goals, investment capital and work/lifestyle goals, bigger is not always better. There are boutique sized gyms that are returning 40% annual cash-on-cash to their owners providing very attractive, scalable multi-unit ownership opportunities. Finding a broker/consultant who specializes within the fitness industry can help you align your personal and financial goals to opportunities best suited for you.
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6. EASY TO FINANCE
As part of a franchise organization, accessing business financing can be easier than you might think. Most brands have prearranged contacts with preapproved SBA funding and equipment financing in place. These brands will have detailed schedules for equipment, tenant improvement needs, burn capital, timelines for development and business ramp-up to streamline your funding application & approval process. With SBA loans, 401K rollovers, and HELOC’s being just a few financing options often available. https://www.wesellgyms.com/ financing/ can help provide options from some of the top gym funding resources in the country.
7. BE IN BUSINESS
FOR YOURSELF – NOT BY YOURSELF!
There are countless examples of multi-unit franchisees enjoying huge success owning large chains of locations
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around the country such as Domino’s Pizza, Sports Clips, Jiffy Lube, Meineke Auto, Planet Fitness or Orange Theory’s just to name few. Many of these operators have 20, 80, 200 and even 700 units under their control! Really think about this for one moment… many multi-unit owner / operators have 40+ units of a franchised brand. Why? The owner of 40 Domino’s Pizza locations surely knows how to make pizza by now. He/she obviously knows how to build-out locations, has no issue with getting additional financing, selecting equipment, hiring staff, buying inventory and supplies etc. so why wouldn’t he/she simply open their own pizza delivery business? Because they understand the secret sauce to making their “work / life” balance better. They understand that
paying a franchise royalty fees gives them greater free time and flexibility when running their businesses. Royalties are the magic that makes the formula work. What would it cost you to develop and hire on-going management, training, marketing, advertising, web development, social media and customer support team? What about your site selection, buildout and equipment team? The answer is… a lot more than the typical owner could ever spend independently. You certainly couldn’t hire this group of talent for under 10% of company gross sales, and the vast majority of all royalties are between 6% and 8%. The wonder of royalties is that instead of an individual owner footing all the bills to develop and run his/her business, these expenses are shared among other franchisees within the organization. Being part of a franchise system provides the advantage of having an entire organization of knowledgeable industry professionals dedicated to the success of your business – including ongoing R&D to identity and introduce new products and services, supporting your business and continuing to improve methods and procedures to enhance unit level operations and profits. Sure, you may be able to do all of these tasks and support items yourself but, isn’t better to work smarter than harder,
FRANCHISES TYPICALLY DEMAND A HIGHER RESALE VALUE IN THE MARKET
and have others help develop systemwide improvements so you can benefit from other people’s efforts? Multi-unit franchise owners clearly understand this and are able to build large business empires far greater than they could do on their own. Franchises offer the ongoing support, education and system enhancements for their franchisees as well as networking opportunities with other franchisees to exchange best practices and ideas to continually refine and improve their business to achieve greater success and enjoy more free time and attractive lifestyle. With over 39,000 health clubs in the US, being part of a gym franchise can provide the owner with a great number of benefits and significant competitive advantages within the industry to position you for
greater success. Bottom line - As the number of health-conscious people around the county continues to grow, so too does the opportunity to invest in a health and fitness franchise. It is estimated that approximately one out of every five individuals in the US, has some type of gyms membership (statista. com). The fitness industry is a lifestyle not a trend. With increased awareness and information about how being active can help you physically, mentally and emotionally, the demand for fitness facilities is at an all-time high, and will continue to grow, which leads to profitable opportunities for those looking to invest. From a business and financial aspect, the pros and success rates of buying into a franchise far outweigh the costs of royalty fees.
For most people who go to the gym, it is not just about getting in a workout, it is about the environment and feeling part of a community. Whether it is a chance to share time and experience with a family member or friend, train for a personal goal or competition or even connect with new like-minded friends, the gym is more than just a place to get in shape. When you consider that an average gym membership costs between $50 to $125 per month and there are over 60 million people (according to IHRSA) who are being served per year, the stability and growth of owning a gym franchise can be a very rewarding and profitable business venture If you are interested in exploring the financial and lifestyle benefits of owning a gym/fitness business, we have a team of industry experts who will take the time to help you evaluate opportunities that are well suited for both your personal and financial goals.
ABOUT THE AUTHOR As a Senior Franchise Consultant with The Franchise Consulting Company, Chris Otter brings over 25 years of successful experience in franchising as a multi-unit owner and franchisor, as well as independent business ownership and consultant having helped thousands explore business ownership. For more information or to schedule a call, please contact Chris Otter, The Franchise Consulting Company, at (912) 506-9208 or Chris@ TheFranchiseConsultingCompany.com
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FITNESS EDITION
Fitness Businesses—
Major Players in the Franchise World by Patrick Elsner, Consultant, The Franchise Consulting Company Franchising and fitness go together like burgers and fries. While the fast food industry dwarfs the $28 billion fitness category, tipping the scales at about $68 billion, Both industries are often cited as being major players in franchising’s economic engine. While the paradox is not lost on observers, one contributing to the ever-expanding waistlines, the other fights the battle of the bulge by burning calories. What is really tasty to those fitness buffs and entrepreneurs alike is the vast menu of franchise choices to slim down your girth while eager franchisees aim to expand their wallet. In the last 15 years, “boutique fitness” has changed the industry landscape. A category once dominated by big box gyms like Gold’s Gym, Lifetime Fitness, LA Fitness (formerly Ballys, which was formerly Vic Tanny for those Baby Boomers who might remember), plus a plethora of independents, these boutique brands are sprouting everywhere. The brand that is considered the most dominant by total number of units open is Orange Theory. Started in Boca Raton Florida, they boast over 1 million members in 23
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countries. With 1200 studios, and doing over $1 billion in sales annually, as recently as 2018, Orange Theory sits atop the leaderboard. Ellen Latham, an exercise physiologist, created this high intensity interval training program that has a cult like following. With heart pounding unit economics, franchise owners’ welcome members to participate in these group workout sessions. The communal feel and the results the workouts deliver have propelled the brand to the top of charts. The workout has three legs to the stool: treadmill, indoor rowing, and weight training. Participants cycle between all these different stations over the course of a session. All the workouts are led by a coach. The participants goal is to stay in a heart rate zone to maximize the calorie burn. Participants can also wear a branded heart rate monitor that is then displayed on screens at the front of the class. Following each session, members receive the stats from that class’s success Via email/mobile app. Members boast about the effectiveness of the work out. “I feel the burn long after the workout,” Salah Orsan, insurance executive in St Louis, said. He’s dropped about 10 lbs. since joining the franchise a few months ago. Opening an orange theory is not for the faint of heart. Initial investment runs anywhere from $575,000 to over $1.5 million, according to Orange Theory’s website. Interested in opening a location? The website states Less than 0.1% Who inquire about opening
a franchise are awarded one. That, in large part to the fact that most major markets have already been awarded and either have a location or will soon open one. So, if you can’t fulfill your entrepreneurial desires with an orange theory, what does one do? Well the same thing that Burger King, Wendy’s, and Taco Bell franchise owners did when they recognized that they could not open a McDonald’s. They went to the next best thing. If you can’t join them, open a competitor. In fitness, there is no lack of willing companies trying to get their own fair share of this $28 billion market. We like a Company called Xponential Brands. They have nine different franchise companies in the boutique space under their umbrella. The CEO, Anthony Geisler, is
a well-regarded leader with a deep pedigree in the fitness space. His claim to fame was LA Boxing. In 12 years, he built the concept and grew it into 35 states before selling in 2012. Now with boutique fitness concepts across several types of exercise including Pilates, yoga, rowing, cycling, Geisler is expanding his franchise brand nationwide. While fast food and fitness are worlds apart in many respects, the goal to satisfy the hunger for the customers remain aligned.
Now pass the salt! ABOUT THE AUTHOR Patrick Elsner was one of the top franchise consultants in 2019 for FCC. He has helped more people explore franchise ownership in his 18 years as an industry expert. info@thefranchiseconsultingcompany. com
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FITNESS EDITION
Fitness with a PUNCH by Chelsea Renno, Punchologist, RockBox Fitness
The RockBox story didn’t start in a boardroom. Like many success stories, it started with one person and a dream. Steve Halloran, co-founder of RockBox Fitness, was a serial entrepreneur with corporate roots who also happened to be an avid amateur boxer. Combining his love for boxing, kickboxing, and functional strength training led Steve to start his first training studio in 2013. He quickly grew his membership, and his passion for changing people’s lives through fitness was felt by every new member he gained.
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Roger Martin, a pharmaceutical sales and marketing executive, started taking classes at RockBox, it wasn’t long before his entrepreneurial spirit kicked in alongside his fitness drive and passion for boxing and kickboxing. Inspired by the vision and the potential, Roger left his role to build the brand full-time.
Steve and Roger spent the next couple of years focused on the market positioning, and member experience to enable the locations to thrive in a competitive but fast-growing market. Two additional corporate owned RockBox studios are opened
Jeff Dudan, started working out at RockBox Fitness, and like Roger, immediately recognized the potential for RockBox Fitness to be a leading boutique fitness franchise brand.
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JEFF DUDAN JOINS AS EQUITY PARTNER In 2019, Jeff Dudan joined the team as an equity partner, bringing his franchise executive expertise to help grow the brand noting: “One of the things that attracted me to RockBox Fitness was the company’s level of research and how it has been positioned in the fitness industry, RockBox has everything you’re looking for in a fitness brand. I became a member last year and I’ve been experiencing tremendous personal results.” Dudan is the founder and former CEO of AdvantaClean, a Light Environmental service franchise business that specializes in mold remediation, water damage restoration, and air duct and dryer-vent cleaning. He grew the company to more than 230 franchise territories in 37 states before selling it to Home Franchise Concepts in January 2019.
DIFFERENTIATION By mixing perspiration with inspiration, our franchise model perfectly balances grit and grin. The Workout: RockBox Fitness was built to avoid the No. 1 problem with any fitness program – boredom. The studios feature all the boxing equipment and heavy bags one would expect for a boxing- and kickboxing-
based workout, plus an array of functional-training tools such as kettlebells, battle ropes and sleds (elliptical and treadmill machines need not apply). Our functional training stations have kiosks demonstrating the proper technique for each exercise. The Studio: Our studios are equipped with high-end sound systems to rock the tunes that keep
OUR STUDIOS ARE EQUIPPED WITH HIGH-END SOUND SYSTEMS TO ROCK THE TUNES THAT KEEP MEMBERS PUMPED AND PUSHING HARD.
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members pumped and pushing hard. Coloradaptive lighting is also used to cue another level of psychological motivation. When the lights change, so does the intensity. Nutrition: RockBox is unique in that we also help members better their health offering nutritional programs, dietary supplements, and 1:1 accountability coaching. OUR NETWORK RockBox works with people who feel just as strongly about fitness and changing lives as we do. We work hard to create a network of more than just professional colleagues, but of a family of RockBox owners. We see all our partners as family! Most RockBox Fitness franchisees have no fitness industry experience. We look for franchisees who possess a strong work ethic, drive to succeed, solid character, professional demeanor, discipline, and a genuine and authentic desire to help people. LOOKING AHEAD The company value’s spell out the acronym F.A.S.T.E.R, and it’s no surprise the RockBox Fitness model is quickly paying off for franchisees joining the team. RockBox has three corporate stores, 17 operating franchises, and 16 more franchises actively working through our pre-opening process. We have an additional 40 licenses sold, expanding our network throughout the Southeast, Texas, Arizona, New Jersey, Ohio and California to name a few!
Interested in learning more about opportunities available with RockBox Fitness Franchising? Jdudan@rockboxfitness.com Jeff is a published author, Forbes contributor, speaker, and consultant to emerging franchise brands as well as a serving YPO as Chapter Chair of the Southeast Regional US Chapter, Novant Health as Advisory Board member, and the IFA Franchisor Forum as a member.
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DISCOVER
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FRANCHISING! Online Trade Show Marketing is the #1 Way to Meet New Opportunities!
THE LARGEST ONLINE SHOW IN CANADA!
Attend
Tour
Meet
Learn
The Largest Online Franchise Trade Show in Canada!
The Best Canadian & U.S. Franchise Offerings.
With Canadian Experts on Business, Finance, Law and Marketing.
About the Hottest Business Trends in Canada.
Ask for Your FREE VR Headset! TO REGISTER
For Your Free Tickets or to Learn About Exhibiting Go To:
www.FranExpoCanada.com In Conjunction With The Great American Franchise Expo
Franchise Expo
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at the world's biggest virtual Franchise Expo! For dates and registration details go to: www.franexpousa.com
BUSINESS ADVICE
Buying An Existing Franchise – A Two Step Process by Nancy Lanard, Esq., Founder, Lanard & Associates When you are buying an existing franchise business it is a two step process. A person must evaluate both the franchise investment opportunity (the franchisor/ franchisee relationship) and the existing business opportunity (the seller/buyer transaction). This involves two very different steps that need to be taken. STEP ONE Evaluate The Franchise Opportunity In the same manner that you would evaluate any franchise investment opportunity, you need to validate this franchise opportunity. You should speak with existing franchisees of the system (the full list of the franchisees and contact info is an exhibit to the FDD and found in the Table of Contents of the FDD) and learn about
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their experiences with the franchisor. You do not need the franchisor’s consent to call the franchisees. In another blog post I have listed my top 10 favorite questions to ask existing franchisees (see Top Ten Questions to Ask Existing Franchisees). Talk to as many franchisees as you have time to call as they are the people running the business and working with the franchisor and will be most knowledgeable about the system. Next, read the 23 Items of disclosure that are in the front section of the FDD. They are required by federal law to be written in Plain English and represent important information that you should know before investing in a franchise. I also strongly recommend that you evaluate (or have
an accountant evaluate) the financial statements of the franchisor to ensure that the franchisor is financially strong enough to support the system in place and the growth that is anticipated. The financials will be an exhibit to the FDD (listed in the Table of Contents) and the number of locations and growth can be found in Item 20, tables 1 and 5. Once you have done that independent evaluation, the experienced franchise attorneys at Lanard and Associates can review the franchise agreement and any other documents you will be required to execute with the franchisor. STEP TWO Evaluate The Business That Is Being Sold If you are buying an existing franchise business, you need to ensure that the business itself makes sense financially, that the assets are free of claims by creditors and that the party signing on behalf of the seller has the authority to bind the seller, among other things. This means evaluating (or having your accountant evaluate) at least 3 years of tax returns for the business and all other financial information about the business. You should have an experienced attorney review the lease for the business (assuming
it is a brick and mortar business) and determine if the lease has sufficient years remaining to be an asset of the business. If there is only a short term remaining on the lease, it is possible that you may have to find another location or renegotiate the lease terms, which may be financially, and in other ways, less favorable than the current lease. You should also review all outstanding contracts of the business, and evaluate the condition of all the hard assets. Any Purchase Agreement that you enter into should protect you with sufficient warranties from the seller that you can be sure that you are obtaining clear title to the assets and that all the assets are in good working order. You should also obtain warranties and representations that the individual signing on behalf of the seller has the authority
to represent the seller and sign the documents. There are many other issues and concerns when buying an existing business that need to be addressed. For example, in some states you will need to get tax clearance or bulk sales clearance from the state in which the business is located in order to ensure that you do not inherit any tax liabilities. Retaining experienced counsel to assist you with this important process is critical to ensure you do not make any mistakes that will be costly in the future. CONCLUSION As you can discern from the discussion above, buying an existing franchise business (a resale) is a two part process. Both parts – evaluating the franchisor/ franchisee relationship and documents, and evaluating and negotiating
the sale documents and all accompanying documents and assets (along with ensuring the assets are transferred properly and clear of liens) is critical to the success of a prospective franchisee buying a resale of a franchise business. Neither aspect is more important than the other; they should be reviewed carefully by an attorney who is both familiar with franchise law and handling acquisitions. The attorneys at Lanard and Associates have the expertise to help you with this important acquisition. ABOUT THE AUTHOR Nancy is a franchisee attorney who represents individuals investing in a franchise, sets up the entity and reviews and negotiates the lease for their business, along with the legal documents for resales of franchises. Contact Nancy at 215-392-0030 or nlanard@lanardassociates.com lanardandassociates.com
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JOIN THE LARGEST INDOOR CYCLING
Franchise in the World Today!
BRING THE HOTTEST WELLNESS BRAND TO YOUR COMMUNITY! WITH OVER 200 STUDIOS OPEN AND A LOYAL, GROWING FOLLOWING, CYCLEBAR CONTINUES TO RAPIDLY EXPAND.
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A DIVISION OF KEYSER
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FITNESS EDITION
ATHLETIC REPUBLIC— Harnessing the Power of Sport by Charlie Graves, CEO of Athletic Republic
A
thletic Republic is a sports performance training franchise that utilizes a science-based, data-driven, individualized approach, to help athletes of all ages increase speed, improve power, enhance agility, and develop the endurance and efficiency to improve their game-day or race-day performance. Athletes earn the Athletic Republic advantage by following our systematic approach that has endured the test of time and outlasted countless training and fitness trends for more than three decades. One of Athletic Republic’s core values is ‘We Believe in the Power of Sport.’ Sport teaches us productive life lessons, about the value of
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setting goals, working hard, playing fair, and working as a team to achieve a common goal. We also learn how to persevere through adversity and to develop leadership skills. Now more than ever our headquarters team, franchise operators and athletes must harness these qualities hey have developed and refined through sport to respond to the COVID-19 crisis. For the headquarters team that means moving forward with new programs and projects that will be part of our reopening, including: a new Athletic Republic Home Virtual Training App; an Outside Training curriculum for clubs and teams looking to bring their players safely back to competition; the introduction of new sport-focused training protocols and membership models; a line of ‘NSF Certified for Sport’ nutritional supplements; and reopening marketing that respects our customers’ interpretations of the new normal. For our operators, our individualized small-group training format with a ratio of 5 athletes to 1 trainer allows them to effectively deliver the right workout to each athlete every time. Athletes of different ages, of different physical development, from
different sports, and who have completed a different number of AR workouts can all train together, each following a different training protocol suited to their specific needs. This small group setting is well suited for the increased athlete separation our centers will implement, along with increased time between classes for additional cleaning and nightly sanitization. We expect our athletes to return because we help them get faster and move better, which will be of particular importance and even urgency as they seek to rebound from missed seasons or interrupted training. Our expertise provides
SPORT TEACHES US PRODUCTIVE LIFE LESSONS, ABOUT THE VALUE OF SETTING GOALS, WORKING HARD, PLAYING FAIR, AND WORKING AS A TEAM TO ACHIEVE A COMMON GOAL.
WE EXPECT OUR ATHLETES TO RETURN BECAUSE WE HELP THEM GET FASTER AND MOVE BETTER, WHICH WILL BE OF PARTICULAR IMPORTANCE AND EVEN URGENCY AS THEY SEEK TO REBOUND FROM MISSED SEASONS OR INTERRUPTED TRAINING. them with a proven, highly effective way to come back stronger than ever. As part of our standard methodology, we test every athlete to establish a performance baseline, which identifies their strengths and areas for improvement. Then we assign a series of proven periodized training protocols that maximize the development of their neurologic and metabolic systems. We quantify these improvements with an assessment at the end of each training block to evaluate progress, then monitor the data with our proprietary online Athlete Information Management System (AIMS). Athletic Republic has the proprietary equipment, sportspecific training protocols, education programs, operating systems, support structure, and business development expertise to meet the expanding demand of the market with a lineup of training services that deliver results for every athlete. To learn more visit us at www.AthleticRepublic. com or contact our franchise development team at AthleticRepublic@ BrandOneFD.com.
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ABOUT US
A Spa For Your Life. Not Just Your Day.
A
s we continue to navigate our way through these unprecedented times together, there’s one thing we know for sure…there will be an end to this and when it does end, there will be an overarching need for a focus on health and wellness. CLOVR Life Spa was built on a singular, core idea: spagoing ought to be an inviting but casual experience. Today, the day-spa industry treats wellness like healthcare. It calls experts, “practitioners and therapists,” we call them “Artists.” Traditional spas place you in a “waiting room,” we INVITE you to hang out in our “Living Room.” At CLOVR, we have a dedicated “Chill Lounge” where our guests can just “Chill” and have an opportunity to enjoy some much-needed mindfulness. We believe wellness goes beyond the body and the mind; it’s based on what a healthy lifestyle looks like for you as an individual. We knew the model needed to be stronger, the “artists” needed to be better understood, and the consumer needed a better fit. We knew wellness was personal, and it will look, feel and sound different to everyone we reach. We saw a clear necessity to do better, so we did just that.
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SOME INSIGHT INTO THE SPA INDUSTRY According to iSpa (experienceispa.com), the spa industry has demonstrated year over year growth over the past decade. For the ninth consecutive year, there were across the board increases in all key performance indicators. In 2018 the industry set new records in total revenue, visits, location and revenue per visit. Total spa revenues were $18.3 billion and spa visits were up to 190 million. Revenue per visit climbed to $96.50. Profits also demonstrated steady growth as well. Finally, the average revenue per spa establishment has reached $826,000, the highest since 2001. On top of these positive growth numbers, when you factor in the additional mental and physical stress currently accumulating across the country, it’s clear the spa industry is posed for continued success. EXPERIENCE THAT MATTERS The CLOVR leadership team was behind some of the biggest names in the health and wellness franchise industry,
assisting in the development of Massage Envy, Amazing Lash Studio, The Joint Chiropractic and Redline Athletics. Boasting over 50 years of combined experience in franchise development and growth, as well as vast experience with consumer facing industries in brand innovation, technology and operations, CLOVR’s management team is primed for another top tier franchise brand. ANTI-MEMBERSHIP MEMBERSHIP Utilizing our experience from the aforementioned franchise brands, we believe the recurring revenue business model is attractive to our franchisees because it establishes a regular, predictable income stream as long as the customer continues to use our services. To ensure this, we have built a NEW membership model to keep our members engaged in an ongoing relationship. We call it the “Anti-Membership Membership.” It’s definitely not your average membership.
WE BELIEVE WELLNESS GOES BEYOND THE BODY AND THE MIND; IT’S BASED ON WHAT A HEALTHY LIFESTYLE LOOKS LIKE FOR YOU AS AN INDIVIDUAL. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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Here’s how it works: 1. Every Dollar Goes to Services – Instead of a monthly contribution going toward a single service, every dollar can add up to be used on any service or combination of services, whenever they like, however they like. 2. Everything Rolls Over - The contribution dollars roll over from month to month, so they can be used for any combination of services or product at any time.
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3. Members Save Money Members receive 30% - 40% off discounts on services and 10% off discounts on retail products, plus access to exclusive events and offers. 4. It’s Sharable – With our household membership, anyone in the home can use the member dollars. 5. There’s No Lockdown – Anyone can cancel at any time with no penalties. When we founded CLOVR Life Spa, we knew one thing: CLOVR was going to be different. Different because we choose to focus on what people really need and want, instead of what works just for the business model. By truly focusing on our member’s needs, CLOVR is more than a business, it’s part of the community.
IT’S A MATTER OF NECESSITY We have created a better, more personal experience, supporting a culture in which wellness goes beyond the physical to help you feel more ready for whatever your life brings. A spirit of friendship, moments of inspiration and a place to give yourself whatever you need to live your best life. At CLOVR, if you believe what we believe, you will never be the same.
We will be your necessity.
ABOUT CLOVR LIFE SPA Spa Acquisitions, LLC dba CLOVR Life Spa Franchising with headquarters in Scottsdale, AZ. For more information on franchise opportunities, please visit www.LifeSpaFranchise.com
OUR STYLISTS USE THEIR EXPERT TRAINING TO RECOMMEND THE PERFECT CUT OR STYLE FOR YOU.
OVER 2,700 LOCATIONS NATIONWIDE
© 2020 Supercuts Inc. Printed in the USA.
FITNESS EDITION
After the Storm: How to Get Ahead of the Fitness Demand by Allison Zorich, Director of Business Development, Guidant Financial
already in operation saw a median gross profit of $193,656, an average COGS (cost of goods sold) of $85,489, and an average total value of $179,622. This shows just how strong the fitness industry kicked off in 2020. Gym memberships were rising, new fitness franchise concepts were growing, and real estate was a hot commodity.
THEN THE CORONAVIRUS HIT.
The gym and fitness industry generates roughly $3.7 billion in revenue each year. IBISWorld reports that the industry grew at a rate of 5.2 percent in the five years leading up to 2020 and forecasts industry revenue will hit $4.0 billion by 2023. What does that growth look like for fitness business owners? Guidant’s data shows individuals who started a gym or purchased a franchise location in 2020 invested an average of $247,799. Businesses
$3.7
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Fitness concepts have had to shift their way of operating – they’ve needed to think outside of the box and be innovative to keep members active and engaged. Brands like Orange Theory, Spenga, Burn Boot Camp, ISI Elite, CityRow and many others have accomplished this by taking their brands virtual. These brands now offer virtual workouts through their apps, social media, YouTube, etc.
$4.0
billion predicted by 2023
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These are great ways of making sure clients stay engaged and are ready to return when the quarantine lifts. I recently had the opportunity to participate in a virtual happy hour with women leaders in franchising. One of the attendees was Susan Boresow, President of iLoveKickboxing. Susan shared that iLoveKickboxing has offered a virtual membership option for over a year now, which I thought was remarkable. Not only are they already in a position to better weather these unprecedented times, but they have the operational infrastructure in place to accommodate their members, regardless of the pandemic situation. Like this, Bedros Keuilian, Founder of Fit Body Boot Camp, was a panelist on a webinar I recently attended. He further validated that having a virtual platform is another way to add secondary income for franchisees.
$247,799
invested in new gyms & Fitness Centers
$193,656
prof its for current gyms & f itness centers
Right now, it might seem like a bad idea to pursue a fitness concept with so many customers under shelterin-place orders and the SBA and lenders showing stricter scrutiny to fitness businesses. But USA Today reports that sales of food like sugary cereal, junk food, and frozen pizza are up as people crave those comforts through the pandemic. Most of us have laughed at memes talking about our bad habits during the quarantine – overindulging in less-than-healthy food and virtual happy hours. But the truth under these jokes shows that we’ll need and want fitness brands more than ever in the months to come. When it comes down to it, the franchise industry, fitness included, has seen huge challenges before. So while the coronavirus pandemic might be unprecedented, challenge isn’t. You can look at the past storms we’ve weathered to understand that we’ll get through this one, too: the 20072008 financial crisis and the following Great Recession, the economic impact of the Gulf War, and even the 1973 oil crisis. Get ready for when people flock back to fitness businesses
$85,489
average cost of goods sold
by pursuing financing that doesn’t rely on the overlytaxed SBA – like Rollovers for Business Start-ups (ROBS). ROBS uses the money in your rollable retirement account to fund your franchise. This lets you invest your cash in yourself, instead of a volatile market. With ROBS, you start your business debt-free and cash-rich, while eliminating the concern about SBA approval, high-cost down payments, or risking your home as collateral. Guidant Financial is the largest ROBS provider in the space. We’ve helped over 20,000 entrepreneurs open their doors – both small businesses and franchises. Our CEO, David Nilssen, said,
$179,622
average total value
“The coronavirus outbreak has created significant challenges everywhere. And while it’s natural to be concerned, if you are able, it’s also good to look ahead toward life after the pandemic – and making moves to ensure you’re poised for success.” The average timeline to open a new business is about three to five months, depending on how long it takes to locate space and negotiate the lease. ROBS only takes around three weeks to complete from start to finish. This speed puts you in a great position to have your business ready to open, operate, and generate revenue as soon as the quarantine is over. Without the fear of depending on an SBA approval, the control is in your hands.
For more information, contact: Allison Zorich, CFE Director of Business Development allison@guidantfinancial.com WWW.FRANCHISEJOURNAL.COM | MAY 2020
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FITNESS EDITION
BODYBAR Pilates & Franchise FastLane BODYBAR Pilates & Franchise FastLane
Are Gearing Up For A Transformative 2020 Are Gearing Up For a Transformative 2020 The up-and-coming pilatescentric fitness concept and franchise sales solution recently struck up a partnership that is poised to take BODYBAR to an exciting new phase of growth. Talking to Kamille and Matt McCollum, you’d be surprised to discover the two are newcomers to the franchise game. The newlyminted franchisors of 7-yearold fitness concept BODYBAR Pilates exude a level of drive and mindfulness acumen usually only found in the most seasoned of entrepreneurs, making it evident from the start why Franchise FastLane sees so much growth potential for BODYBAR. The McCollums began their tenure with BODYBAR as franchisees initially in Fort Worth, Texas, the city adjacent to the brand’s Dallas home. “Between the workout, the income and the community of like-minded people, we fell in love as fran-chisees,” Kamille said. The brand was going through changes in leadership at the time of their opening, so the McCollums took it upon themselves to establish the necessary systems and processes to get their studio packed and profitable. Between Kamille’s team leadership and Matt’s business development background, it was no time
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their studio was bustingfitnessqualified Thebefore up-and-coming pilates-centric concept to identify with the McCollums’ journey from the seams with business and struck andat franchise sales solution recently up a franchisee to franchisor, as he the two began considering the partnership that is poised to take BODYBAR to an himself made the switch when prospect of expansion. When exciting new phase of growth. he left GNC to found Complete they went back to the brand, Nutrition in 2005. When though, they were met with an Talking to Kamille and Matt McCollum, you’d be surprised to discover the two are newcomers to the franchise game. The he was introduced to mindfulness the entirely different opportunity. newly-minted franchisors of 7-year-old fitness concept BODYBAR Pilates exude a level of drive and acumen usually only found in the most seasoned of entrepreneurs, making it evident from the start why Franchise FastLane sees McCollums through a mutual “Purely based on our studio’s so much growth potential for BODYBAR. business associate in midsuccess and the processes The McCollums began their tenure with BODYBAR as franchisees initially in Fort Worth, Texas, the city adjacent to the 2018 asofthey began heading Matt I had established, brand’s Dallas and home. “Between the workout, the income and the community like-minded people, we fell in love as franchisees,” Kamille said. The brand was going throughus changes in leadership at the time of their opening, so the McCollums up BODYBAR’s franchising BODYBAR leadership asked took it upon themselves to establish the necessary systems and processes to get their studio packed and profitable. initiatives, was surprise to Kamille’s partner them andbusiness take development Between teamwith leadership and Matt’s background,itit was no no time before their studio was busting at thethe seams with business and the two began considering the prospect of expansion. When they went back to they all connected so quickly. over brand’s franchising the brand, though, they were met with an entirely different opportunity. “Matt and Kamille previously efforts,” Kamille said. Before “Purely based on our studio’s success and the processes Matt and I had established, BODYBAR leadership asked us to being franchisees is going to long, the McCollums were partner with them and take over the brand’s franchising efforts,” Kamille said. Before long, the McCollums were taking on the entire business—on June 1st, 2019, they were officially full-fledged of BODYBAR Pilates, and their partservefranchisors as a powerful resource taking on the entire business— nership with Franchise FastLane began. in their journey as franchisors,” on June 1st, 2019, they were Zink said. “Having been there officially full-fledged franchisors myself, I can say first hand of BODYBAR Pilates, and their that working with customers, part-nership with Franchise understanding the product FastLane began. and being the one to open and Franchise FastLane CEO close a location each day gives Ryan Zink is uniquely
MAY 2020 | WWW.FRANCHISEJOURNAL.COM
FRANCHISE FRANCHISE FRANCHISE “BAR” “BAR”TALK TALK FRANCHISE “BAR” TALK “BAR” TALK
17% 17% 17 % 17% 17% HIGHER REVENUE HIGHERREVENUE REVENUE HIGHER POTENTIAL THAN HIGHER REVENUE POTENTIAL THAN LEADINGTHAN POTENTIAL POTENTIAL THAN LEADING COMPETITORS! LEADING
LEADING COMPETITORS! COMPETITORS! COMPETITORS!
Franchise FastLaneperspective CEO Ryan Zink is you invaluable uniquely qualified to identify with the —nobody understands McCollums’ journey from franchisee franchisee better than toa franchisor, as he himself made the someone who there switch when he lefthas GNCbeen to found Complete Nutrition in Matt 2005. and When he was themselves, and introduced to the McCollums Kamille embody that.” through a mutual business associate in mid-2018 From the initial conversation, as they began heading up BODYBAR’s Kamille and Mattitknew franchising initiatives, was nothat surprise working with Franchise they all connected so quickly. would take a lot FastLane
off ofand their plate and letbeing “Matt Kamille previously them focus on what they franchisees is going to serve as ado powerful resource in their journey as best: Streamline unit-level franchisors,” Zink said. “Having been operations, establish strong there myself, I can say first hand that processes and build a profitable working with customers, understanding business fast.being the one to open the product and anaemerging brand, we’re and“As close location each day gives you invaluable perspective looking at dollars and—nobody cents understands a franchisee better very closely and we felt like than someone who has been there having Franchise FastLane themselves, and Matt and Kamille on ourthat.” team would help us embody reach our goals as quickly and
From the initial conversation, Kamille and efficiently asworking possible,” Kamille Matt knew that with Franchise said. Plus, Matt FastLane would takeadded, a lot off “We of their plate and let them focus they do were impressed by on thewhat broker best: Streamline unit-level operations, relationships they’d established establish strong processes and build a and with their great reputation profitable business fast.
throughout the industry.”
“AsThough an emerging we’re looking thebrand, relationship is at dollars andthe cents very closely and we young, BODYBAR team is felt like having Franchise FastLane on
already seeing returns. Beyond just the weekly calls Matt and Kamille have with the Franchise
our team would help us reach our goals FastLane team, the McCollums as quickly and efficiently as possible,” have been incredibly impressed Kamille said. Plus, Matt added, “We were by Ryanby and availability impressed the Carey’s broker relationships to answer their many questions they’d established and with their great reputation throughout the wherever industry.” and provide insight
possible. In fact, the Though the relationship is Franchise young, FastLane team has gone so far the BODYBAR team is already seeing returns. Beyond just the weekly calls as to connect BODYBAR with Matt and emerging Kamille havebrands with the Franchise other as a FastLane team, the McCollums have means of sharing best practices been incredibly impressed by Ryan and and learning the their mistakes Carey’s availabilityfrom to answer many they’veand already made, in the questions provide insightall wherever possible. theparties’ Franchise FastLane name In offact, both overall team has so far as to connect goal ofgone growing BODYBAR BODYBAR with other emerging brands Pilates nationwide. as a means of sharing best practices and“We’ve learning heard from thenothing mistakesbut they’ve greatmade, things about what already all in the name of both parties’ overallFastLane goal of growing Franchise has been BODYBAR nationwide. able to Pilates accomplish with its
partners webut feelgreat likethings we’re “We’ve heardand nothing about what Franchise FastLane been in great hands with theirhas team,” able to accomplish with its partners and Matt said. “They know how to we feel like we’re in great hands with sellteam,” effectively and cultivate their Matt said. “They know how relationships along the togreat sell effectively and cultivate great relationships along the way,in which is way, which is pivotal their pivotal in their success. We can trust success. We can trust them them with validating candidates and with validating candidates and getting people to us who are a good fit people to operations us who are a sogetting we can focus on the side fit so we canfranchises focus onopen the ofgood our business, getting and successful side just asoffast asbusiness, they’re operations our bringing leads in. getting franchises open and
THE
THE BODYBAR THE
THE DIFFERENCE BODYBAR BODYBAR DIFFERENCE BODYBAR DIFFERENCE Pilates is a leading boutique fitness format
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Pilatesisisalso a leading Pilates a boutiquefitness fitness format boutique format proven franchise model Pilates is a leading
boutique fitness Pilates also aformat Pilates isisalso Initial brand is a proven franchise model proven nearly sold outa model Pilates isfranchise also proven franchise model Initialbrand brandisis BODYBAR Initial nearlysold soldout out differentiators set it apart nearly Initial brand is
nearly sold out BODYBARinvestment Reasonable BODYBAR with high returnsset differentiators setit itapart apart differentiators BODYBAR differentiators set it apart Robust systems Reasonable investment Reasonable investment ofwith support highreturns returns with high Reasonable investment
with high returns Passionate, Robustsystems systems Robust experienced founders support ofofsupport Robust systems of support Passionate, Passionate, experiencedfounders founders experienced bodybarleads@franchisefastlane.com Passionate,
531.333.3278 experienced founders
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531.333.3278 531.333.3278 bodybarleads@franchisefastlane.com 531.333.3278
successful just as fast as they’re bringing leads in.
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Moderate Investment with High Net Returns
FIND YOUR BALANCE BODYBAR PILATES WILL CHALLENGE ALL OF YOUR MAJOR MUSCLE GROUPS AND PROVIDE YOU WITH A FULL BODY WORKOUT.
HIGH INTENSITY, LOW IMPACT PILATES WORKOUTS PERFECT FOR INCREASING FLEXIBILITY, MUSCLE STRENGTH, POSTURE AND BOOSTING OVERALL HEALTH.
BEYOND YOUR TONED ABS, YOUR BODY WILL BE TRANSFORMED FROM THE INSIDE OUT. CAN YOU SAY BODY GOALS?!
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Room for multi-unit development in many markets Online interactive workout platform available during current crisis and plans to continue beyond Strong leadership team with large investment backing New trademark twist on a classic pilates format
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531-333-3278
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.
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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.
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FITNESS EDITION
MAHANA FRESH—
USING FOOD AS FUEL by John Thomas, President, Mahana Fresh
Mahana Fresh started with the vision to provide healthy fresh food not only for athletes but for everyone. By using the principles that fuel athletes and applying them to make food fast, delicious and convenient they have revolutionized the QSR space. During the pandemic their franchisees have been providing healthy nourishing food through contact less curbside pickup and delivery not only direct to consumers but also to our front line heroes. Food is the fuel that helps athletes perform their best. Without it, endurance, strength and overall performance will be down. If you want to get the most out of your workouts and athletic capabilities, your diet should be a top priority in your fitness efforts. As your body puts out energy through exercise and training, you need to replenish those lost nutrients, which can be done by choosing the right foods. Here are a few of the groups that are important and you will find across the Mahana menu.
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BERRIES Blackberries, raspberries and blueberries are just a handful of the delicious berries that are rich in antioxidants, which need to be replenished after physical activity. Darker berries contain phytochemicals and other protective elements that prevent oxidative stress that occurs in the body during strenuous activities. They also preserve muscle strength as you age, so they’re good for the long term.
SALMON This oily fish is packed with lean, muscle-building protein and omega-3 fatty acids, which reduces the inflammation that can happen with continual athletic activity. It is also a natural artery cleanser, helping to prevent heart disease, which can affect even the most active people. Get creative and enjoy salmon in burgers, salads or pastas to get the recommended eight ounce serving per week.
BEANS/LEGUMES Vegetarians and meat eaters alike can get their fill of plantbased protein by eating beans and legumes. Black beans, pinto beans, kidney beans, lima beans… the varieties are endless! You can add them to a salad or cook them into a stew or chili. Unlike meat, beans and legumes don’t have saturated fat and contain fiber, which will help you feel fuller longer.
PASTA Not all carbs are bad! In fact, they’re an important part of the athlete’s diet. While the body burns fat and protein, it must first convert them into carbohydrates, making the body work harder. Straight carbs act as a fuel for the active person. Keep in mind that pasta contains fiber, which can cause gastrointestinal stress, so don’t overdo it before a big event where you’ll be competing or playing. Whole grain pasta typically contains less sugar than white pasta, which can also help athletic performance.
CRUCIFEROUS VEGETABLES Dark, leafy greens such as spinach and kale, as well as broccoli, cauliflower and brussel sprouts are rich in antioxidants, vitamins and minerals to boost your athletic abilities. They also contain high levels of vitamins A, K and B6, and calcium and iron, all of which protect the body against inflammation. Iron also means more oxygen being supplied to working muscles. Kale contains carotenoids and flavonoids, two power antioxidants, and fiber, which helps lower cholesterol.
SWEET POTATOES Sweet potatoes are rich in vitamins A and C, both antioxidants that remove free radicals from your body. They lower blood pressure, which is important for athletes to their heart health when participating in sports. They’re high in vitamin and mineral content and contain the levels of potassium, iron, manganese and copper athletes need for healthy muscles.
NUTS Nuts are high in protein and healthy fats, making them a mainstay in athletes’ diets. Eaten with carbs, they help level out blood sugar and sustain carbs over a longer period of time, rather than burning them off right away. They’re also easier to digest and don’t upset your stomach. Plant-based protein nuts are rich in fiber and antioxidants like vitamin E. The anti-inflammatory nutrients found in nuts are great for bone health, which is needed by every athlete. They also lower the bad cholesterol, which is good for heart health. HYDRATING FOODS Radishes, watermelon, bell peppers, spinach and oranges are just a handful of foods you can eat to replenish lost fluids. If you’re tired of downing water (not that you shouldn’t), opt for one of these snacks after exercising.
FLAXSEED, OLIVE AND COCONUT OIL The monounsaturated fats found in olive oil have anti-inflammatory properties, which athletes need when putting so much stress on their bodies. Flaxseed oil contains omega-3s, which is also anti-inflammatory, to help recover quickly with bumps and bruises. It also contains fiber and protein. Coconut oil is filled with medium chain triglycerides (MCTs), which can help with your endurance during a grueling workout. The MCTs in coconut oil can also help with metabolism and energy from fat.
Poor eating habits will eventually lead to poor performance. During these challenging times it is important to eat foods that boost your immune system and give you the energy to function at your peak. Whether you’re a recreational or competitive athlete, your body needs the right nutrients to fuel itself during high-intensity activity. These foods provide the restorative, energy-boosting properties necessary to stay healthy while putting your body through exercise or other endurance activities. For more information, reach out to Patrick Sommer, Director of Franchise Development 980-216-0533 or at patrick.sommer@ mahanafresh.com. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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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
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
FITNESS EDITION
Xponential Fitness—
Fights the Fight with the Pandemic Pivot Like many businesses, the Xponential Fitness family of brands found themselves responding to a rapidly evolving situation in early March, with the shuttering of studios nationwide due to the COVID19 pandemic. CEO of Xponential, Anthony Geisler’s fighting spirit in business was engaged immediately: “We looked at it and we said, do we want to close the stores, stop billing everybody and sit idle, or do we want to fight our way through the storm?” he said. The quick answer was “Let’s go fight the fight. Let’s get back to the market first. Let’s switch people to virtual so we can keep them engaged. We believe it will allow us to sustain business during this time, but also get back into the market quickly.”
“DO WE WANT TO CLOSE THE STORES, STOP BILLING EVERYBODY AND SIT IDLE, OR DO WE WANT TO FIGHT OUR WAY THROUGH THE STORM?” Within a day, a “COVID19 Task Force” was established and work was underway to find ways to provide alternative revenue streams, financial relief and member engagement tools that franchise owners could leverage. THE PIVOT The main focus for Xponential was making sure members could stay active and healthy during this chaotic time and allow franchise owners to continue generating revenue. A full digital experience was quickly created including video on-demand workouts for active members on each brand’s GO™ platform, extensive support for livestreaming classes at the local level as well as Corporate-led workouts, and an online gift card purchasing platform directly supporting individual studios. FINANCIAL RELIEF Recognizing the need to quickly find ways to provide financial relief for franchise owners, Xponential introduced a 50% reduction in the marketing fund fee; free
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shipping on retail; 20% off retail and absorbing all transaction costs and fees associated with gift card purchases. Vendor concessions across marketing, sales, equipment, and lending partners were also negotiated for owners using the weight of Xponential’s network of 1500 studios. Focused on signing leases just a few days prior, the Xponential Real Estate Department was quickly repositioned to work with all of franchise owners to assist in rent relief discussions with landlords, while also the Finance team were tasked with providing guidance on any external financial relief efforts and ways to increase efficiencies with owners’ operational expenses. Much like studios had to pivot to digital, Xponential’s corporate operations made the move too, conducting virtual discovery days, franchise trainings, general manager trainings and teacher trainings. ENGAGEMENT THROUGH CREATIVITY Engagement has been key and
brands have been determined to keep members engaged and make sure they feel connected to their brand, their workout and their local studio community through all of the digital channels available. Pivoting allowed for creativity with members engaged through livestreaming classes; social engagement; offering 60 Days of each brand’s GO™, the on-demand streaming library serendipitously established in late 2019; member events like virtual “Sip & Shop”; virtual happy hour or “Wine Down Wednesday”; fitness challenges; and renting out their bikes in CycleBar or rowers in Row House to members to continue their workouts at home. Member loyalty has proven fierce during COVID19. So fierce that Pure Barre members created their own social campaign, #purebarrehelps, sharing videos on Instagram of how much their Pure Barre virtual workouts are helping them during COVID19. With
more than 300,000 video views in a few short weeks, the member generated campaign has allowed the brand to reach new, socially connected audiences. Starting with just a few locations, the momentum among CycleBar owners and Row House to rent their bikes and rowers out to members grew quickly and became not only a way to generate revenue but help members stay connected to their community and workout during the stayat-home order. Their creativity paid off, with members sharing their gratitude: “New norms. Riding this bike has been a whole new experience. It’s lonely yet I feel so connected. It’s difficult yet it feels so empowering to just ride. I miss the room. I miss the lights. I miss the community right in front of me...But this all can’t happen for now. Not yet. But we can be creative…...” shared Heather Myers, a CycleBar Paradise Valley member. “New norms. Riding this bike has been a whole new experience. It’s lonely yet I feel so connected. It’s difficult yet it feels so empowering to just ride. I miss the room. I miss the lights. I miss the community right in front of me...But this all can’t happen for now. Not yet. But we can be creative…...” The ‘Pandemic Pivot’ has highlighted just how creative and nimble the Xponential brands need to be, finding ways to generate alternative revenue streams for their franchise owners, and maintaining brand awareness and loyalty during a digitally
competitive time for the fitness industry. Now the focus is on reopening studios state by state with what has recently been referred to as “The X Factor” - sales, marketing, operations, and scale. Many members have expressed their eagerness to get back to their workouts as soon as studios start to open back up, perhaps the best sign of Xponential choosing to “fight the fight” and weather the storm. For more information on Xponential Fitness go to: www.xponential.com
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MAKING A DIFFERENCE
SERVICE DOGS—
Why They are Important by Phyllis Pieri, Consultant, The Franchise Consulting Company I have a lovely neighbor next door who has multiple sclerosis (MS). You really wouldn’t know it if you saw her except that sometimes she uses a walker. One Sunday at church I went over to say hi and noticed her service dog. It helps to improve her quality of life and helps keep her safe and healthy. MS produces a variety of symptoms, and the illness can make it difficult for you to get around, interfere with your balance, and impair your vision. These highly trained animals can perform a wide variety of tasks. One of hers is to make sure she doesn’t get overtired. What a gift this dog is.
WE HAVE ALL SORTS OF DIFFERENT SERVICE DOGS TODAY. MOBILITY ASSISTANCE DOGS These types of service dogs can perform a wide range of tasks for people with a wide range of mobility issues. According to Service Dogs of America, mobility assistance dogs can bring objects to people, press buttons on automatic doors, serve as a brace for people who are ambulatory or even help pull a wheelchair up a ramp. These dogs help people increase their independence and confidence.
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GUIDE DOGS Assistance dogs who lead visually impaired and blind people around obstacles are one of the most commonly known types of service dogs. HEARING DOGS For people with hearing impairments, service dogs assist by alerting to noises such as alarms, doorbells or crying babies. When the dog hears the sound, they’ll touch their human and lead toward the noise. DIABETIC ALERT DOGS Also known as DADs, these service dogs can provide
independence and security by alerting to chemical changes in blood sugar. The scent changes associated with hyperglycemic or hypoglycemic events in diabetics are imperceptible to humans, but not to dogs. These service dogs alert their people to blood sugar highs and lows before the levels become dangerous. SEIZURE ALERT DOGS Seizure alert dogs are one of the controversial types of service dog. They react with a specific type of behavior right before her human has a seizure. The ability to alert
to seizures seems to be a natural ability for a small number of dogs, although some neurology experts say there is no reliable evidence to suggest that dogs can reliably predict seizures. SEIZURE RESPONSE DOGS Not to be confused with seizure alert dogs, seizure response dogs provide help to a person experiencing an epileptic seizure. These dogs bark for help or to press an alarm system during a person’s seizure. They can also get a person out of an unsafe place. And may bring medicine or a phone to a person who is coming out of a seizure. AUTISM SUPPORT DOGS For kids on the autism spectrum, these dogs provide a sense of predictability as the children navigate social settings. The dogs can be a big help for kids who have trouble connecting with classmates. The canine acts as an icebreaker in social situations. They improve the child’s quality of life by reducing isolation and comforting the child in stressful times. These dogs are also trained to keep children from running away and can track children if they do run off. FASD SERVICE DOGS An emerging category of service dog, these dogs support children who were exposed to alcohol prenatally, and have been diagnosed with fetal alcohol spectrum disorders (FASDs). These
DOGS DON'T JUST FILL YOUR HEART; THEY ACTUALLY MAKE IT STRONGER. children may have physical and mental difficulties, as well as behavioral problems and learning disabilities. According to 4 Paws for Ability, FASD dogs are trained similarly to autism service dogs. They can also be trained to interrupt a repetitive behavior. ALLERGY DETECTION DOGS With the rise in food allergies has come another type of medical service dog. Allergy detection dogs are trained to sniff out and alert to the odor of things such as peanuts or gluten. Often partnered with children, allergy detection dogs can be trained to alert to allergy-inducing smells at school. Allergy detection dogs provide kids with a greater sense of independence and giving their parents a greater sense of security. While it’s clear that some dogs can be successfully trained to alert for allergies, this category of service dog attracted negative attention when some parents said they paid for dogs that couldn’t care less about a deadly peanut. Dogs don't just fill your heart; they actually make it stronger. Studies show that having a canine companion is linked to lower blood pressure, reduced cholesterol, and decreased triglyceride levels, which contribute to better overall cardiovascular health and
fewer heart attacks. If you are looking for a business that makes a difference in the lives of people, you might consider the industry. The pet industry has been exploding. Petco was the first Big Box store in 1965 but then PetsMart arrived in 1986 and then Pet Supplies Plus in 1988 which is a franchise. They wanted to add that personal touch to the industry with great products, personalized customer service and a neighborhood feel and a special way to greet their “neighbors.” In 2011 is when e-commerce arrived on the scene with Chewy. Sixty-seven percent of U.S. households, or about 85 million families, own a pet, according to the 2019-2020 National Pet Owners Survey conducted by the American Pet Products Association (APPA). This is up from 56 percent of U.S. households in 1988, the first year the survey was conducted. ABOUT THE AUTHOR Phyllis Pieri CFE I use my passion for people and my 35+ years in the franchise industry to guide fledgling entrepreneurs through the franchise selection process. In my franchise career, I have done it all, including working for franchisors, consulting with franchisees, and owning franchises myself. This depth of experience makes me ideal for helping people find their “perfect match” franchise. info@ thefranchiseconsultingcompany.com
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FITNESS EDITION
Why is the
Fitness Industry Booming? by Drew Paras, Fitness Industry Franchise Advisor and Business Broker
F
rom gyms, health clubs, fitness centers to online fitness coaching, and video tutorials, the fitness industry has exploded globally. As of now, the worldwide fitness industry is worth nearly $100 billion. As more and more people are engaging with wellness and fitness firms, to adapt to healthier lifestyles or for recreational purposes, the industry has grown from $87.2 billion in 2017 to $99.9 billion in 2019. It is expected to follow the same trajectory of 8.7% annual growth for the next five years (www.IRHSA.com). There are several reasons for this historic growth pattern. Apart from thousands of health clubs and gymnasiums popping all around the globe, there is a set of more deeply rooted and ironically, unexpected reasons that drive the boom. 1. Preventative Healthcare: Prevention is better than cure; the same policy is being followed by consumers worldwide. Traditionally, healthcare providers practiced therapeutic practices to cure a health condition. Now, however, preventative practice is becoming popular. Rather than prescribing medicine or medical approach, professionals now tend to advise their clients about lifestyle changes and preventative exercises, such as improving food consumption and increasing their level of activity.
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2. Insurance costs: Obesity or low levels of activity makes people prone to diseases. Hence, physically fit people cost much less to insure. Employers and insurance companies have realized this, and now they are encouraging and incentivizing healthy lifestyle. Many employers are now covering the costs for gym memberships or fitness coaching for their employees, not just for reducing health insurance costs but also for the wide range of benefits that accrue from employee wellbeing. 3. Tech-boosted fitness: Wearable technology, such as smartwatches, fitness bracelets, and smartphones that we carry around, is making personalized health and activity statistics more accessible for everyone. Wearable technology is enabling users to have a greater awareness of personal health and fitness. With the power to record every step taken, every calorie burnt, and what their blood pressure and heart rate are, people feel more in control of their health and are encouraged to do more. As they receive digital feedback, users are motivated to take healthier steps; this drives them to sign up with health clubs and buy gym memberships. 4. More online classes: More people streaming exercise sessions online and exercise tutorials on YouTube have integrated the part of the population into the fitness industry, which, previously, couldn’t take an hour out from their busy schedules to follow a workout routine. However,
the common belief that online exercise classes have led to fewer people actually going to gyms and fitness centers is entirely wrong. The opposite is, in fact, true. People who take online classes also maintain a membership at gyms or fitness centers as this combination gives them greater variety and helps them to be consistent in their workout routine. While these are only some of the many reasons why this particular industry is growing so rapidly, this high pace of growth and its likelihood to continue in the upcoming years attracts attention from investors. Gymnasiums are at the center of the fitness industry, not only because the gym is the first thing that comes to everyone’s mind when they think of improving their fitness, but also because budget-friendly gyms are one of the core reasons behind the growth of the industry. ‘High Value, Low Price’ facilities are attracting higher numbers of clients. As compared to the more expensive option of larger health clubs that offer a greater variety of services other than fitness training, the exercise, and training centric gyms that have memberships placed at much lower costs are gaining popularity. Nonetheless, with such
potential, any investment in the fitness industry is sure to bear fruit for the investor. The fitness industry is one of the most proven and successful sectors in franchising, providing bankable recurring revenue, (auto EFTs) low labor requirements, little to no COGS or inventory to track and control - combined with a simple, straightforward operating model that can be easily replicated for multiple unit ownership. ABOUT THE AUTHOR Drew Paras is a Fitness Industry Franchise Advisor and Business Broker. To learn more and explore available opportunities contact Drew at drew@ thefranchiseconsultingcompany.com.
WEARABLE TECHNOLOGY IS ENABLING USERS TO HAVE A GREATER AWARENESS OF PERSONAL HEALTH AND FITNESS. WWW.FRANCHISEJOURNAL.COM | MAY 2020
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EMPOWERING LIVES THROUGH MARTIAL ARTS
OVER 100 SCHOOLS OPEN AND 200 IN DEVELOPMENT
WE EMPHASIZE FINANCIAL PERFORMANCE
EMPOWER MORE STUDENTS OF ALL AGES WITH MARTIAL ARTS
A FRANCHISE SERIOUS ABOUT BRANDING & MARKETING
PREMIER MARTIAL ARTS IS IN RAPID GROWTH MODE
Premier Martial Arts is unique in the $4 billion martial arts industry because of our focus on financial performance. Our business model is designed to maximize profitability, and our ongoing coaching helps our franchisees meet their goals.
We teach thousands of students on a daily basis, beginning at age 4 and all the way up to senior citizens. Our curriculum emphasizes life-lessons, as well as self-defense and fitness, providing a well-rounded approach to martial arts.
Premier Martial Arts is one of the only martial arts franchise systems that has developed the professional branding necessary to build brand awareness. Our expertise in branding allows us to help our franchisees market effectively in their communities.
We have more than 100 schools open across the United States. Our business model has generated significant interest from entrepreneurs and martial art studio owners who want to own a martial arts business with the potential for long-term success.
NO KID SITS THE BENCH! • 95% Student Retention Rate • Semi-Absentee Ownership • FREE Online Karate Lessons for Kids during Quarantine • 15-Year Business History • Establishes Self-Discipline, Respect, Self-Confidence & Self-Defense
premierleads@franchisefastlane.com
531-333-3278
COVID-19 GUIDANCE
Gregory K Mohr A Multi-Million Dollar Franchise Consultant Shares His Journey on How He Started with Franchising and Where Did it Lead Him Greg Mohr, for the longest time has been helping dozens of people achieve their future goals, connecting them with future opportunities, helping them invest in themselves. He is also a Multi-Million dollar franchise consultant. Broker of the year 2015. Top Broker in 2018 and 2019. This recognition is, in part, a result of Mohr's work within the Franchising world helping the corporate refugees and investors. SOME OF HIS ACHIEVEMENTS INCLUDE: • Partnering with a trusted franchise attorney who negotiated and saved a candidate $15,000 off franchise fee for multiple territories. • Consulted with IT professionals to discover that an auto repair franchise, despite IT background, was an ideal fit for personal and business goals. • Placed VP in Las Vegas gaming industry in tutoring and nannie franchise upon learning she had a deep desire to help children. She consequently purchased rights to the entire Las Vegas valley. • Diligently consulted with a candidate for 8 months to help him discover franchise ownership was not suited to him and his goals.
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Mohr, currently residing in Mora, New Mexico, has been involved with the Franchising arena helping the people who want to be free from the captivity of the corporate world, who has the burning desire of financial freedom for 8 years, getting his start when he himself was in the corporate world. He was a restaurant manager working for a master franchisor. He at that time, was building up a franchise empire of restaurants throughout the Sacramento, California area. His gift to determine pain points
of restaurants had paved the way for Greg to be successful in helping restaurants where the problem lies mostly. As he himself had extensive experiences as a manager, his ultimate weapon was the power of listening and understanding employees and taking action. He believed that when employees are treated unfairly, employees would treat customers the same, in return, lack of excellent customer service that could spread through word of mouth which is bad for the business.
"IF YOU TALK, YOU CAN ONLY TELL SOMEONE SOMETHING YOU ALREADY KNOW, IF YOU LISTEN, YOU MAY LEARN SOMETHING NEW." — GREG MOHR After he got his degree in Engineering and obtained his MBA, he decided to pursue his passion in business ownership. An avid reader of Robert Kiyosaki’s series of Rich Dad/ Poor Dad, this was essentially an end to his corporate career and has led him to the path of entrepreneurship. He started business ownership with rental properties and dry cleaners with many drop off locations. Through his extensive experiences he has shared his knowledge in investigating the business opportunities before anything else as this will help other prospective franchise owners avoid the bumps he had gone through when he was starting off. WHY DID I START A FRANCHISE: In a recent one-on-one interview, Mohr reminisced on other past achievements, which helped build momentum towards the present day. Notably, one of the proudest was helping a gentleman transition out of a corporate job he did not like. He purchased a franchise, built it up, had Greg help him sell it and find another franchise. In response to a question on the driving force behind his success, Mohr has explained
how it really boiled down to helping people realize their goals, feeling better about themselves and their future. “The most important lesson from reading many books and going to many seminars, is really getting to know my people, my candidates as well as possible, finding out where they have been, where they are and most importantly where they want to be”. He shared: “It is a big responsibility to be a Franchise Consultant because you're asking people to invest in themselves, you're asking them to invest their hard earned money into the right franchise, so a big responsibility to find them that right franchise where they will be better than they were before, both emotionally and financially and really making them feel good about their future plans and helping them reach their goals.” Reflecting on all of his recognitions Greg is quoted as saying: "If you talk, you can only tell someone something you already know, if you listen, you may learn something new." In the same interview, Mohr stated his intentions for the future. The primary goal for the next 12 months, he wishes to know as many new people as possible. Looking farther ahead, the aim is to help with WWW.FRANCHISEJOURNAL.COM | MAY 2020
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the ongoing global crisis we have which is Covid-19. He aims to find franchises that will continue to do well in this environment. During the interview he stressed that being prepared is always the key to any unforeseen circumstances like Covid-19. “So anytime something happens throughout the United States, or the world, you have to adapt yourself to it. And in this particular case, there's a lot of people that are going to be out of jobs, a lot of people that are going to be looking for their next adventure so to speak. So what we need to do then as consultants in particular, is figure out that
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in this environment, in any environment like this, if it ever pops up again in the future, what Franchises will survive in this situation, thrive and continue to grow. This will make sure you're not taking a hit in income, or at least not for too long as you build the business up and get it to where you want it to be.” HOW LONG WILL MY FRANCHISE LAST: When asked more personally about how they want to be perceived and remembered, Mohr said: "I connect you with your future. I help you invest in yourself!" Mohr closed the interview by sharing his recommendation
for anybody who wanted to follow in his footsteps in some fashion, perhaps taking the achievements even further. According to Greg Mohr, the key is “Getting to know your candidates, listening to them, “getting” them.” ABOUT GREG MOHR Greg Mohr has today been recognized for his efforts in helping hundreds of people achieve their financial goals, connecting them with their brighter future, helping them invest in themselves. Mohr has also shared his reflections and advice in the ongoing Covid-19 issue; preparing your future for inevitable circumstances that might jeopardize your income in an interview. Contact Greg at gregmohr@ thefranchiseconsultingcompany. com. Further information, can be found at www.franchisemaven.com.
CUT HAIR, GROW BUSINESS WITH
Own a franchise with the #1 salon brand: •
Largest Salon Brand in the World
• Recession-Resistant
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Over 150 Salons in Canada
• No Hair Experience Required
•
4,500 salons throughout the U.S. and Canada
• Multi-Unit Business
www.greatclipsfranchise.com • 800-947-1143
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.
MANAGING FEAR
Understanding and Managing Fear by Mark Schnurman, Consultant, The Franchise Consulting Company
S
tarting your own franchise business can be one of the most rewarding events in a person’s professional life. Business ownership is an opportunity for freedom, flexibility and control and can provide significant earnings and a legacy for your family. And it will engender fear. I often reflect on my path to business ownership and the fears associated with launching a business. Even though I started consulting as a side business about 15 years ago, and experienced success, my transition to fulltime self-employment was fraught with fear. These are some of the fears that many of my clients need to overcome.
FEAR OF FAILURE/UNNECESSARY RISK. For many of us, fear of failure keeps us from moving forward in meaningful ways. Strong franchise systems reduce this risk and offer the advantage of joining a proven business model with training, support and systems that enhance your probability of success. Like everything in life, it is important to take reasonable and calculated risks. In addition, if you are reading this you are likely smart, talented and have a track record of achievement. Why would things suddenly be different? In fact, most people perform better as owners than as employees because they have greater control and are more vested in every outcome. That is why franchise models outperform traditional businesses. FEAR OF CHANGE. Most of us live in our comfort zones, doing what we have always done. Inertia keeps us in place. The reality, though, is that the magic happens outside our comfort zone when we stretch our capabilities. FEAR OF TALENT/EXPERIENCE GAPS. You may not think you have enough knowledge or experience. A good franchise is essentially a business in a box and will teach you everything you need to succeed — and then some! It is important, though, to recognize your true knowledge gaps, and avail yourself of the franchisor’s training and support. FEAR OF MANAGING EMOTIONS. FEAR has been called False Evidence Appearing Real. The vast majority of decisions are based on emotions. Emotions often keep us from seeing the facts, reality and logic in the world. Make decisions based on facts not feelings.
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EMBRACE YOUR FEAR, DO YOUR RESEARCH, FIND THE RIGHT BRAND, BELIEVE IN YOURSELF AND CHASE YOUR DREAMS! FEAR OF CHOOSING THE WRONG CONCEPT. There are a lot of Franchises to choose from (about 4,000). That’s too many. It creates a paradox of choice - we want a lot of options but the more choices we have the harder it is to make decisions. A franchise consultant can help you calibrate your personal, professional, lifestyle and financial goals and recommend a few good brands. This is an invaluable benefit and helps to mitigate the fear of making a bad choice. One of the important aspects of franchising is the discovery process. Prospective franchisees are able to systematically learn about a franchise from several different perspectives. The process is invaluable in helping you to really understand and appreciate the business model and most importantly it allows you to confront your emotional fears with facts. During the discovery process, candidates speak regularly with franchisors and are able to ask any questions and address concerns that arise. As a candidate, you will review the franchise disclosure document (FDD) and learn more
about the brand, its costs, its executives, etc. in a formal manner. You will speak to current franchisees and learn about their experiences. They are very honest and open as they want their brands to grow (with the right franchisees) and love sharing their experiences. Finally, you can attend discovery days and/or spend a day in the life with a franchisee. In other words, the process allows for an incredible amount of learning, transparency and validation. All of which results in a reduced level of fear. But fear never completely goes away and top franchisees use it as a force multiplier to drive their performance. So embrace your fear, do your research, find the right brand, believe in yourself and chase your dreams! ABOUT THE AUTHOR Mark helps people learn about franchising and find the right brand fit. His diverse experiences allow him to relate to his clients and help them achieve their goals — which is his passion! info@thefranchiseconsultingcompany.com WWW.FRANCHISEJOURNAL.COM | MAY 2020
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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!
HIRING PRACTICES
Psychometric Assessments: Consistently Outperforming Traditional Selection Methods Psychometric assessments are essential to selection. It has been found that 75% of the Times Top 100 organizations use psychometric assessments successfully in their selection practice. In the current war for talent, it is critical that selection practices are optimized in an organization wherever possible. The impact of poor selection practices can be dire to an organization. This includes increased recruitment costs, staff turnover, training costs, opportunity cost, poor morale, litigation and discontent in the workplace. It is estimated that the wrong hire can cost at least the equivalent of the position’s annual salary. With the average salary of a CEO in the United States the region of $5.3 million dollars, this is a mistake that organizations cannot afford to make. Psychometric assessments are a standard and scientific approach to measuring an individual’s mental capabilities and behavioral style. They assess an individual’s suitability for a role based on personality characteristics or cognitive abilities. It offers credibility and objectivity to
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the process of recruiting that reduces the risk of litigation. Psychometric assessments provide information on an individual’s character, strengths, weaknesses and working style. They measure a number of attributes including intelligence, critical reasoning, personality profile, emotional intelligence, learning potential and integrity. Résumés and interviews do not provide a clear, up-to-date assessment of these hidden skills. Furthermore, it is not always possible, using traditional selection methods, to assess many of the characteristics that are essential to the role such as teamwork, reasoning and personal empathy. Psychometric assessments
provide measurable, objective data that is a better view of an employee’s suitability to a role than other selection practices. This ensures that the right person is chosen for the role. Well-designed psychometric assessments have been shown by a number of researchers to be among the fairest and most accurate ways of recruiting employees. Robertson and Smith (2001) suggest that personality scales achieve validities of .4, assessment centers and ability assessments have values of .5, structured interviews are .3 and application forms are .25. Furthermore, they suggest that interviews have a validity of .2 and, educational
qualification and references have a validity of .1. There is consistent bias in interviews and analyzing résumés. Even the most skilled recruitment specialist has the propensity to favor a candidate on irrelevant characteristics. In contrast, psychometric testing ensures that all applicants are given an accurate standardized test and they are not discriminated against on grounds such as gender, race and/or disability. As a result of the aforementioned factors, there is a greater acceptance for
psychometric assessments than traditional methods. It has been found, in a survey of 1000 graduates, 57% of the sample describe personality and intelligence assessments as useful in the selection process. This is greater than the 41% of graduates that consider interviews to be useful in the selection process. TalentSolved offers a variety of online psychometric assessments to best suit the needs of clients. The TalentSolved range includes personality, aptitude, emotional intelligence and integrity
PSYCHOMETRIC ASSESSMENTS PROVIDE INFORMATION ON AN INDIVIDUAL’S CHARACTER, STRENGTHS, WEAKNESSES AND WORKING STYLE.
assessments. Assessment batteries are carefully chosen with clients for the level and the role, and to assess the particular attributes needed to successfully complete the role. This ensures that the right selection decisions are made. TalentSolved provides a variety of assessments that are able to measure individuals’ performance, potential, proficiency and promotability; adding value to an organization’s talent acquisition and management processes. Visit us today at www.talentsolved.com and get in touch with the guru’s! 1 Validity of an assessment in the
context of work is the degree of relevance the assessment has in forecasting job performance. The closer the validity to 1, the more accurate a measure is.
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Own a Creative, Dynamic Business in the $100 Billion Flooring Industry INDUSTRY TOTAL INVESTMENT: $180K-$200K Mobile Flooring Showroom We bring the showroom to the customer and bring her an experience the Amazon Way – where she wants it, when she wants it; IN HER HOME, with her own lighting and home décor.
Ideal Candidate Our executive business model is perfect for people who:
Franchisee Benefits •
Industry Disruptor
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Ideal Work-Life Balance
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Quality Products
•
Mobile Business
•
Can lead, hire and inspire a team
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Have strong soft skills and enjoy networking
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Low Overhead
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Training & Support
Have business acumen
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Established Brand
•
OUR FRANCHISE LOCATIONS
ARE OPEN FOR BUSINESS! www.opportunities.flooring-franchise.com
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
OPPORTUNITY
PERSPECTIVE
“When we change the way we look at things, the things we look at change.” by Mariel Miller, Consultant, The Franchise Consulting Company
KEY
TAKEAWAYS
With oil prices below zero, unemployment rising exponentially and circumstances the world have never seen nor could ever imagine, all signs indicate a unique recession. According to the International Monetary Fund, there were a total of 4 global recessions after World War 2. They occurred in 1975, 1982, 1991 and 2009. Clearly, 2020 has forever established itself as an absolute epic game-changer on all fronts. Every bit of what we’re experiencing since March of this year is completely bizarre, uncommon, extraordinary and unusual (all synonyms for “unprecedented” which may be a word that had a 2019 expiration date), But we can remain hopeful and even intend to this on the upside by shifting our focus on what we DO know. For one, recessions are an
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expected phase of The Business Cycle. In fact, Khan Academy teaches our kids: “ Every nation’s economy fluctuates between periods of expansion and contraction. Changes in expansion and recession exist in the short run. In the long-run, economic growth occurs again, allowing a nation to increase its output over time.”
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Business cycles refer to the cyclical increases followed by decreases in production output of goods and services in an economy.
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The stages in the business cycle include expansion, peak, recession or contraction, depression, trough, and recovery; in that order, although depression is not always reached on the way down.
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More specifically, according to the NBER, “Since 1945, the average expansion lasted 58 months while the average contraction lasted 11 months. After the 1990s, the average expansion lasted 95 months, while the average contraction remained the same.” Can we speculate here and assume a similar recovery?
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Business cycles are measured by the National Bureau of Economic Research (NBER) in the United States.
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Since the 1990s, the average expansion in the U.S. has lasted 95 months, while the average contraction has lasted 11 months.
Perhaps. We do know one thing ~ sooner or later, consumers will consume again. By the time most of us function normally again, the tragic reality is that a number of good companies, small businesses and institutions simply won’t be functioning at all. In all of that, however, there most certainly be opportunity in all categories. We can expect essential businesses with new solutions, brand new businesses providing services to new needs and tried & true established businesses needed to be completely resurrected. Savvy professionals and investors are preparing themselves for where wealth will be built when we resume life as we knew it. (otherwise known as “the new normal”, similar expiration as above). Building your network is, perhaps, the most efficient way to position yourself in the right place at the right time ~ and perhaps even making your way to the front of the line. Most valuable are the experts who have access to real-time industry data, current quality opportunities and are networked with other resources you’ll need.
A GREAT TEAM SHOULD INCLUDE: FRANCHISE FINANCE PROFESSIONALS These talented professionals offer in-depth conversations, at no charge. They help you assess the most popular funding strategies early-on and can coordinate all aspects of the funding process down the line.
FRANCHISE CONSULTANT WITH A SOLID TRACK RECORD. They can educate you on the industries to watch as well as local quality opportunities as they hit the market, also without charge. They also educate and support you through the learning curve and streamline the search and acquisition process. You can research, reach out and get to know some talented consultants here: TheFCC. SBA LENDER At this time, its advantageous to have personal relationships with local bankers from approved SBA lending institutions. You can find lists on the SBA website – www.sba. gov/lenders
FRANCHISE ATTORNEY Franchising is complicated, as its regulated with rules and laws to protect the consumer and to protect the brand. A topnotch franchise attorney should be on your Essentials List. Gathering the right connections, creating a bold action- plan, and remaining ultra-responsive is a formula for coming out of 2020 not only owning a high-potential business, but becoming part of the solution. ABOUT THE AUTHOR Mariel Miller is a popular, award-winning franchise consultant with over 29 years in the industry. She works nationally with professionals curious about semi-passive and active ownership models with bet-in-class brands at every investment range. Reach out to Mariel at 732-298-0900 or at mariel@ thefranchiseconsultingcompany.com WWW.FRANCHISEJOURNAL.COM | MAY 2020
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DONATE FOOD & HELP FEED AMERICA During COVID-19 Think About Those Who Can't Help Themselves
For more information go to: www.FeedingAmerica.org
Put a Food Collection Box at your location and bring the food to your local food bank.
Every donation helps.