January/February 2020 $5.95
Sharon Estroff is Fierce Following her Gut Led Challenge Island’s CEO to Success
5 Rockstar Questions Every First-Time Franchisee Should Ask Choosing the Right Business Model Searching for the Unicorn of Work-Life Balance Marketing Tips
Legal Tools
Business Trends
January/February 2020 1
Looking Forward
Coming in March: the “She Gives Back� Issue Reserve your space today.
Reach out at info@thefranchisewoman.com 2
The Franchise Woman
On the Calendar Franchise conferences and expos are a great way to check out the latest brands, meet people in the industry and research business opportunities. Find one in your area and take the leap!
The Franchise Show Phoenix, AZ Phoenix Convention Center South Building Jan 24 - 25, 2020 www.franchiseshowinfo.com/phoenix/visitor/ IFA’s 60th Annual Convention Orlando, FL Orlando World Center Marriott Feb 08 - 11, 2020 www.franchise.org/events/convention The Great American Franchise Expo Dallas, TX Irving Convention Center Feb 15 - 16, 2020 www.franexpousa.com/attenddallas
The Franchise Show New York/ New Jersey Meadowlands Expo Center Feb 15 - 16, 2020 www.franchiseshowinfo.com/ newyork/visitor/
The Great American Franchise Expo Tampa, FL Tampa Convention Center Mar 14 - 15, 2020 www.franexpousa.com/
Franchise Expo South Miami Beach, FL The Miami Beach Convention Center Feb 20 - 22, 2020 www.franchiseexposouth.com
Franchise Expo Nashville Nashville, TN Music City Center Mar 20 - 21, 2020 www.franchiseexponashville.com/
The Great American Franchise Expo Houston, TX Stafford Center Feb 22 - 23, 2020 www.franexpousa.com/attend-houston
The Franchise Show Chicago, IL Donald E. Stephens Convention Center Mar 28 - 29, 2020 www.franchiseshowinfo.com/ chicago/visitor/
The Franchise Show Austin, TX Austin Convention Center Feb 29 - Mar 01, 2020 www.franchiseshowinfo.com/austin/ visitor/ January/February 2020 3
IN THIS ISSUE
29
10
Departments 3 On the Calendar. 28 5 Easy Tips to Improve Franchise Lead Conversion. 6 Letter from the Editor. 38 Policy and Pride. 13 I am Woman. 40 Understanding Franchise Models. 14 Is Your Voicemail Fierce, Fun,and Fabulous? 50 Featured Franchises. 22 Comply With This Google Rule or 53 Briefs: Women on the Move. Lose Business.
24 Does Franchising Offer Women a Better Chance to Succeed as an Entrepreneur?
4
The Franchise Woman
32
43
20
Features 10 Changing the World One Flan at a Time.
42
36
5 Rockstar Questions Every First- 31 Time Franchisee Should Ask.
18 Fiercely Following her Dreams, 43 30
Sharon Estroff Continues to Take on the Challenge.
Passion + Purpose + Elbow Grease = Success.
Searching for the Unicorn of Work Life Balance.
46
It’s Never too Late to be a Female Entrepreneur.
34
Ready, Set, Go! Taking the Plunge to Business Ownership. January/February 2020 5
Letter from the Editor Happy New Year! As we close out 2019 with our first two issues under our belts, I am thrilled with the warm reception The Franchise Woman has received. Not only have we talked to and featured amazing women in the franchise industry, but men are interested in what we are doing, too. They are even volunteering to be The Token Man! I am extremely grateful for the invitations I received to appear on several podcasts. Stan Friedman, Bob Griffin, and Fred McMurray have all been gracious enough to invite me on their shows in support of the magazine. I look forward to building those relationships and ensuring that the conversation about the importance of women in franchising continues. If you haven’t heard our story, check out the interviews here. This January/February issue is chock full of great information by great contributors. We have Kristen Horler of Baby Boot Camp helping us sort out the constant struggle for worklife balance. Marietta Snetsinger offers great tips on lead conversion. Michelle Hummel discusses the importance of SSL certificates for your websites, and this month’s Token Man, Eric Schechterman discusses the advantages of franchising over start-ups. We are excited to introduce a column centered around policy that affects franchising across the country and what the IFA is doing to support good policy for franchises. We will also include reports on the activity of the Diversity Institute and the IFA’s newly-announced Pride Council. We believe in inclusion and acceptance of all, and we will work to prioritize those doing good work around this issue. Our cover story this month features Challenge Island’s founder and CEO, Sharon Estroff. Hers is an inspiring story of fierce perseverance and grit. We also spoke to Princess San Diego of What’s Your Flan. This Phillipine’s-based franchise just reached 100 units in only three years. Leslie Dempsey of GYMGUYZ® tells use what it’s like to find your passion and make it your purpose. If you have a great story, please reach out. We can’t wait to meet you! Fiercely,
Elizabeth Denham Publisher/Editor
6
The Franchise Woman
January/February 2020 $5.95
Sharon Estroff is Fierce Following her Gut Led Challenge Island’s CEO to Success
5 Rockstar Questions Every First-Time Franchisee Should Ask Choosing the Right Business Model Searching for the Unicorn of Work-Life Balance Marketing Tips
Legal Tools
Business Trends
We focus on providing accounting solutions to franchises.
Sharon Estroff is the founder and creator of the Challenge Island® program. She started Challenge Island in her second grade classroom and began running it as an enrichment business using the current model in 2003. It has been growing by leaps and bounds ever since.
• Tax preparation and planning
Publisher/ Editor in Chief Elizabeth Denham elizabeth.denham@thefranchisewoman.com
• Monthly accounting, budgeting and contract reporting
Designer Annie Malloy annie.malloy@thefranchisewoman.com Contributors Angel Coté, Nancy Friedman, Kristen Horler, Michelle Hummel, Faizun Kamal, Julie Lusthaus, Eric Schechterman, Marietta Snetsinger, Susan Scotts Marketing Juanita Azul info@thefranchisewoman.com Contact Us 7060 Ponce de Leon Drive Spanish Fort, Alabama 36527 www.thefranchisewoman.com Entire contents copyright ©2019
We service franchises in all 50 states. We offer:
• Reconciliation of daily activities • Financial reporting • Monthly financial analysis
Willis + Rice Tax Georgetta Rice
georgetta@willisricetax.com • 678-793-4461 www.willisricetax.com
8
The Franchise Woman
We strive to create an amazing resource for women in the franchise industry. We appreciate all ideas, feedback and questions. Please contact us at any time. www.TheFranchiseWoman.com info@thefranchisewoman.com 251-300-1324 January/February 2020 9
She gives back
Changing the World
One Flan
For some people, failing in business 14 times would be enough to make you quit trying. But when you are as fierce as the Philippines’ Princess San Diego, you keep believing and keep moving forward. Good thing she did! After only three years, her dessert business What’s Your Flan, reached its 100th unit with franchise lo-
10 The Franchise Woman
at a Time
cations operating all over the Philippines and one in Dubai.
“I am so blessed to be a part of this dream and to have our WYF company that is like family,” San Diego said. “Everything has been so unexpected, and I am so happy.”
by Elizabeth Denham
How She Started San Diego always wanted a source of income so she and her husband could save for their family’s future. Her husband funded her first 14 businesses which ranged from restaurants to gadget sales and a clothing line to car accessories. She started What’s Your Flan with her own $20 in her kitchen. “It was hard being of a certain age and feeling like I had not achieved anything,” San Diego said. “My husband’s support has been a big factor in my success. He told me, ‘you only have to succeed once.’” And succeed she did, but not without challenges. After considering options for treats to feed her love for cooking, San Diego discovered an amazing Mexican treat – flan! She started small in her own kitchen, and the first few months were great. She kept going, added flavors and thought she was on her way. But by summer, she had no sales and no customers. She was ready to give up.
Perseverance In San Diego’s moment of doubt, her husband stepped in and gave her some encouragement. Together, they came up with ideas to help her reach more customers and increase sales. They stepped up their packaging, introduced different flavors, offered opportunities to resellers and made the product available nationwide. Once people started discovering the product, she had to offer more flavors to keep up with demand. What’s Your Flan is now the pioneer in the flavored leche
flans niche, making it the number one flan business in the Philippines and abroad. They are continuously innovating their favorite desserts and have begun adding a new line up of products with unique concepts. “We are somewhat unique in that we are a home-based business,” San Diego said. “It’s difficult in the Philippines to open a storefront. It is expensive and traffic is so bad, people would rather stay home and order online.”
January/February 2020 11
Changing the World As a home-based business with a low entry point, San Diego’s business model targets people who are often marginalized in society – the unemployed, the disabled, senior citizens, housewives and abused OFWs (overseas Filipino workers). “We look for people who could benefit from business ownership who are often overlooked or unable to work in a corporate job,” San Diego says with pride. “There are many companies that won’t hire senior citizens or people with disabilities, but they can work if it’s flexible.” San Diego is also dedicated to helping repatriated and abused OFWs. She has partnered with HOPE of the Blas Ople Center (and other NGOs who serve this community) in helping the repatriated and abused OFWs by giving them opportunities, seminars and counseling. There are 760,000 OFWs and one in five is a domestic worker. Many of these workers face abuse when working abroad. What’s Your Flan also partners with UNICEF. A percentage of sales goes to the organization and WYF supports UNICEF’s annual Christmas Celebration Charity event at The House of Refuge.
Awards San Diego won 1st Place in the NextGen in Franchise Leaders event held at Franchise Asia Philippines in July of 2018. She won The NextGen in Global Franchising first runner up award at the International Franchise Convention’s annual confrence held in Las Vegas last February. She is the first Filipino and Southeast Asian to reach this level of success.
For more information about What’s Your Flan go to: https://m.facebook.com/whatsyourflan/. You can also email Princess at whatsyourflanmainbranch@yahoo.com.
12 The Franchise Woman
I am Woman by Elizabeth Denham
I am fun, fierce and fabulous. I am smart, driven and successful. I am engaged in my community. I give back and pay it forward. I am all of these things and none of these things. Because every day is a new challenge. Every day is a new gift. There are days where success comes naturally – personally, professionally. And there are days when success is defined by survival. I believe in the gift of the struggle. I own it. I accept it. I face it. I believe you must embrace your reality – the good and the bad. Embrace your reality. Own your struggle. Knowing there is a lesson to be learned, a gift to unwrap. I achieve all of these things and none of these things. Because I am imperfect. But when I fail, I know where to look. I look for the gift in the struggle. It is always there.
January/February 2020 13
Customer Service Tips
Is Your
Voicemail
Fierce, Fun and Fabulous?
by Nancy Friedman, Founder, Chairman Telephone Doctor Customer Service Training
When was the last time you listened to your own voicemail greeting? Since you recorded it? Years ago? The message you have on your voicemail is often the first impression potential customers have of your business. I have helped many franchise folks with their voicemail greeting, and on a scale of 1 to 10, most were a 2 or a 3. Some got up to a 7 or 8. This is a critical thing to get right. And it’s not that hard. Below are some common voicemail mistakes people make. Generally they can be: • Too long • Too short • Boring • Lacking emotion • Uninformative
14 The Franchise Woman
A most-overlooked business tool, some folks have a message which sounds like a sequel to “Gone With the Wind.” Others simply say, “Hi, this is Bob, leave a message.” Come on, we can do better. Much better. One guy in Chicago had this: “You know what to do, GO.”
My guess is you haven’t checked in and called your own voicemail in a long time. So, your first assignment from the Telephone Doctor is to do just that. We cannot fix what we do not know. Call your own voicemail. If you’re not 150% happy with it… take 60 seconds of your busy day and rerecord. If not for you, for your callers.
Here are the Big Five voicemail/cell phone frustrations. 1. I’m not at my desk right now. (OMG!) DUH? That’s a hot lot of news. What a boring, semi useless statement. Live a little. Let your callers know where you are – not where you’re not. Tell them, “I am in the office all this week” or “I’m in a sales meeting till 3 pm.” Let them know if you do or don’t check messages. Let them know when you will be back. 2. Your call is very important to me. (THE GROANER) OMG. Really? A big-time waster. The caller is thinking, “Well, if I’m so darn important, where the heck are you?” And then again, think about it. Maybe the call isn’t so important to you. You just don’t need this phrase. 3. I’m sorry I missed your call. (USELESS) How dull. Of course, you are. (Although, there are probably some that you’re not sorry to have missed). OK to leave this phrase out! It’s a given. Use the time and space for something more valuable − like where you are and when you will return! Or, who they can call for more information.
January/February 2020 15
4. I’ll call you back as soon as possible. (AND WHEN IS THAT?) Not interesting and not fun. Mainly because your “as soon as possible” and my “as soon as possible” may not - and probably are not - the same. And based on our Telephone Doctor surveys, probably not true. The truth is most people aren’t returning their phone calls in a timely fashion (if at all). If you’re telling your callers you’ll call them back, make sure you do. If you think you may not return the call…then try this: “Go ahead and leave your phone number and I’ll DECIDE if I’ll call you back or not.” (Just kidding!) Unreturned phone calls rank high on the frustration list. “As soon as possible” is not an effective phrase. All you need is to say, “I will call you back.” (Then do it! Or have it returned on your behalf.) Not returning a phone call is like not using your turn signal. Just rude. 5. No escape. (Everyone needs an escape) Hitting operator - ZERO, while not available on your cell, remember to tell callers to hit ZERO for the operator (or whoever) if they need more information on home or office phone. On your cell, you can give them another name and extension. The main point is to offer an alternative when you’re not there. Plus, you’ve bought back some time to say something more interesting or helpful to the caller.
TELEPHONE DOCTOR Customer Service Training
VOICE MAIL WARNING NOTICE COMPANY NAME: OFFENDERS NAME:
Your cell phone message has been charged with: 1. Spoke way too fast. 2. Spoke way too slow. B O R I N G 3. Message was sequel to GWTW 4. Message OUTDATED, UNHELPFUL or PROVIDED NO INFORMATION 5. No SMILE. BLAH. YOU CAN DO BETTER! • Your voice mail is your vocal business card. Callers deserve better treatment. • Call your own message at work and your cell phone. Hear what your callers hear. • Watch Telephone Doctor’s one-minute video 5 Frustrating Voice Mail Phrases. http://www.nancyfriedman.com/warnings Signed: A concerned caller (Signature, Optional)
Courtesy of the office of... Nancy Friedman Keynote Customer Service Speaker www.NancyFriedman.com nancy@telephonedoctor.com O: 314-291-1012 /C: 314-276-1012 © 2019 Nancy Friedman
And please, please, please remember to SMILE when recording the message. Believe it or not, callers can “hear” the smile in your voice!
Nancy Friedman, Founder and Chairman of Telephone Doctor Customer Service Training, is a sought-after speaker for franchise and corporate conferences, sharing tips and advice in customer service, communication and sales. As a former franchisor, she brings the good, bad and ugly for us to review. Author of 9 books, Nancy can be reached at www.nancyfriedman.com, or email her at nancy@telephonedoctor.com or a call: 314-291-1012 CST.
16 The Franchise Woman
GOLD STANDARD Of Customer Service
She is Fierce
No path to success is a straight line, but when you are fiercely dedicated to your vision, you figure it out. That’s exactly what Sharon Estroff, founder and CEO of Challenge Island has done. And she has turned it into an international franchise company that is now the number one STEM/STEAM program on Entrepreneur Magazine’s Franchise 500 and is made up of 90% female franchisees.
18 The Franchise Woman
Fiercely Following her Dreams,
Sharon Estroff
Continues to Take on the Challenge by Elizabeth Denham
Leading by example, Estroff shares her lessons in learning from her mistakes and growing in her ability to believe in herself. “Every time I have made a good decision it has been because I trusted my gut and my instincts,” said Estroff. But it has taken time for her to build the confidence to follow her inner voice. “Being a female CEO in the male dominated franchise space can be daunting - especially when you are coming from the field of education, not business,” Estroff says. “Sometimes I feel like I am wearing a sign that says, give me all of your unsolicited advice about what I should and should not be doing! I know people are only trying to help, but Challenge Island is just as out of the box as I am in the franchise world, so their advice doesn’t always align with my core values and vision.”
Each time she has allowed herself to be steered in a dubious direction, Estroff has learned critical lessons. And each time she has managed to pull herself back on course after making a mistake, she has gained a clearer view of her big picture goals and greater confidence in her ability to make the right choices for her company. It’s been an important – albeit bumpy - evolution.
program I created for my students, and turned it into a full-time gig.”
In 2003, Estroff was “at the height of what she calls her “Dr. Jekyll and Mrs. Hyde phase.” She spent her days as a cheerful, engaged second-grade teacher and her evenings as a stressedout mom attempting to help her own four children with homework.
“With the popularity of STEM, STEAM and 21st Century Skills in the educational marketplace, I had a hunch that this business model would work for other parents out there,” Estroff says. That hunch was right and today, Challenge Island is one of the fastest growing educational franchises in the world with 100 units in 30 states and 4 countries.
“I knew it was time for a career shift,” she says, “but as an educator born into a family of educators, I was afraid to stray too far from the field of education. So I took Challenge Island, a STEAM
Estroff began offering Challenge Island as a n afterschool enrichment class in nearby schools while tutoring on the side to make ends meet. Before long, she had created a profitable home-based business that she could run around her family’s busy schedule.
Part of her journey has included staying true to who she is. “I have learned to recognize what I am good
January/February 2020 19
at and what I am not,” Estroff explains. “The key is embracing your strengths while building a ‘tribe’ of people around you who have skillsets that are different from your own, but share the same fundamental values and mission as you do.” In fact, the tribes model is at the core of both the Challenge Island curriculum and company. “Our entire franchise system is built on the power of the tribe.” she says. Estroff notes that about half of the Challenge Island franchisees come from the education world and the other half come from the corporate world, running the gamut from former lawyers to marketing executives to Wall Street Bankers. One quality that all owners share is the desire to make a difference as well
20 The Franchise Woman
as an income. Challenge Island franchisees bring STEAM education and 21st Century skills to their communities through after-school programs, camps, in-school field trips, scout badge workshops, family nights, and corporate STEAMBUILDING® events. There are a few things that set Challenge Island apart from other STEM franchises, which are generally based in coding, Legos and robotics curriculums. Challenge Island takes a wholistic, cross-curricular approach to engineering, adding the arts (fine arts, language arts, dramatic arts, music, and good old-fashioned imagination and creativity) and focusing on essential soft skills like collaboration, communication, critical thinking and problem solving. This
STEAM program also uses the original definition of technology: a new solution to a problem. “While we are all for digital technology,” Estroff explains, “we also know that kids need a break from their devices. Research shows that depression, loneliness, anxiety, and lack of creativity and imagination abound among digital native children. Challenge Island gives them a chance to imagine up worlds that are not powered by an electrical current and to read facial expressions rather than emojis, for a change.” Through the use of a thematic island with a map and passport stamp, playful costumes, music and artwork, the kids solve problems using only the items in the treasure chests. This method caters
to kids of all ages, abilities and strengths and encourages the use of creativity and imagination. The path to success has not been smooth. In 2012, a franchising company acquired Challenge Island and began franchising it in 2013. Estroff believed this was a good decision because of the resources and experience available to her through this group -which franchised a Lego-based brand - were appealing. As time went on, Estroff realized this was not a match made in heaven – the other company’s values and vision did not align with hers. She began to feel like she had sold her baby. Then, by some miracle and after a long-fought battle, Estroff was able to buy Challenge Island back in December of 2015 along with 25 then-wobbly franchisees who were looking to her for support and guidance. Today, Challenge Island is 100 franchises strong because of Estroff’s vision and leadership, yet she is still awestruck by both the success and scope of it all.
“I have these incredibly talented and passionate franchisees whom I thank my lucky stars for every day,” she says, “and I have the Challenge Island enterprise, this entity that – like my children – continues to grow in ways and directions beyond my wildest dreams. Leading this fast-growing company requires me to continuously broaden my skillset, to be introspective and proactive, and to make strategic and financial decisions that are both healthy and aggressive.” Looking ahead, Estroff continues to push boundaries and chase the next big idea. She is starting a series of books for Challenge Island. Each book will feature a different island and have fictional stories along with activities. Throughout her process, Estroff has learned who she is and continued to push success. “I may be a fish-outof-water-teacher in a great-big-franchisingsea; but whatever we are doing seems to be working, so we keep on swimming forward.”
For more information, please contact info@challenge-island.com
January/February 2020 21
Cybersecurity
Comply With This
Google Rule
Or Lose Business by Michelle Hummel
Do you count on showing up in a Google search to gain customers? Does your website have a section where people can sign up for your mailing list or request a free consultation? What about a place for visitors to ask questions? Do you sell products or services online? If you
22 The Franchise Woman
answered “yes” to any of these questions, your website needs a valid SSL certificate. If you don’t have one, Google’s protection code will mark your site as unsafe. This causes reduced rankings in search and lost site traffic which leads to lost business.
Unsecure Notification With the release of Chrome 68, the ribbon is a thing of the past. Users will now see a warning with your website where expired.badssl.com appears:
Google’s New Code Starting in 2014, Google ranked sites that begin with “http” lower than those with “https.” Ask any experienced business owner, and they’ll tell you a higher Google ranking leads to increased sales. In 2017, Google started to highlight unsecure websites by denoting each “http” site with a ribbon warning in the address bar. While some savvy web surfers noticed the ribbon, they didn’t think too much about it unless they had to enter credit card information.
According to Security Week, 18.5 million websites are infected with malware, a virus that can allow hackers to steal personal information and ruin computers and mobile devices. With this epidemic, cybersecurity is now a common term even among casual web surfers – and Google is doing its part to protect its reliability and its customers’ personal information with the launch of Chrome 68.
Not only will your search rankings take a huge hit, but depending on the web browser and experience level, your potential customers won’t be able to reach your site at all – especially mobile users. Considering 48 percent of buyers use mobile devices as the first point of contact to start their search, this is business you can’t afford to lose. Even advanced web surfers may choose to leave the site before entering once they see that message. However, website owners shouldn’t think Google is punishing them for not complying with new rules; they should realize that Google is rewarding those who are making the Internet safer against cybercriminals. It’s also a subtle hint to your future customers that your business is credible.
What Should You Do? Get an SSL certificate. The good news is they aren’t very expensive. But unless you’re proficient in coding, you should trust a professional to install your certificate. Michelle is the CEO and Founder of Web Strategy Plus, a full-service digital marketing agency, where her team of experts specializes in helping franchise owners develop websites, SEO and Social Media Strategies. A published author of three books in her series, “The Social Media Magnet: Everything You Need to Know to Attract Customers with Social Media.” She also holds a valuable Internet Marketing Degree and provides training to help individuals acquire Social Media Management Certification through Web Media University. Contact Michelle at info@michelleshummel.com.
January/February 2020 23
Does Franchising
Offer Women a Better Chance to Succeed
The secret is out, the next big thing in franchising is already here….female franchise owners. The numbers tell a story of rapid change. At FranNet, female franchise ownership jumped by 83 percent. Entrepreneur.com reported in a 2018 article that female business ownership jumped by 83 percent between 2011 and 2017. An obvious reason for the shift is a corporate world full of unfair pay gaps, improper workplace environments and an antiquated culture of penalizing women for stepping away from employment in order to raise their family. Franchising has become the answer for the budding and powerful female population.
24 The Franchise Woman
As an Entrepreneur? by Eric Schechterman
But why have these women opted for franchising vs. traditional business ownership? It is because the numbers show a higher chance for success. When Janine Allis, Boost Juice Founder and Shark Tank investor, spoke to SmartCompany she said, “There’s no question — you’re three times more likely to be successful with a franchise than you are going to be on your own.” Research over the years has indicated that the success rate for franchise-owned endeavors is significantly better than the rate for non-franchise-owned small businesses. According to 2019 census data and a study published in the
Journal of Economics & Management Strategy, the two-year success rate of a franchise is about eight percent higher than the independent success rate, and the one-year survival rate for a franchise is about 6.3 percent higher. I love data…I love statistics…I can spend all day finding article after article and study after study that have numbers showing that franchising increases your chances for success. That being said, it is not a perfect world, and I am sure one can find data that supports the other side of the argument. Rather than regurgitating numbers and studies, maybe the better question is WHY is there more success or less risk?
The answers are simple… Support With a franchise business, you get to enjoy a support system from the start. One of the most common reasons businesses fail is not being able to afford the right team. A non-franchise small business owner may not be able to hire a customer service department, a marketing team, an R&D team, etc. In a franchise model, you have access to all of these services and more from the parent company.
Research You get to research the business’ viability before you start. This is my favorite part of franchising and something that you just can’t get when you start from scratch. When you launch a franchise business, you’ll get information on the financials, meet the management team, speak to existing franchisees who have already run the business, etc. When you invest in a franchise, it’s more of a business decision than a leap of faith when you do the proper research.
Proven Success You are building a business based off a well-established model. This goes beyond just brand recognition and marketing. This also reduces the amount of mistakes a new owner could make. If you are investing in a franchise with 100+ locations, that is 100+ test cases that have been used before you to identify best practices, training, revenue streams, common pitfalls, etc.
January/February 2020 25
Financing Financing options are typically offered with banking relationships in place to make funding easier. This is simple. Banks and financing companies love franchise brands and are very hard on independent start-ups for all the reasons discussed above. In most cases, a franchise will have financing relationships in place to make this an easier part of your journey.
Data
Franchises enable you to pinpoint target markets and give you support. We live in a world of data. Franchises use that data today to ensure success. Franchise brands don’t just throw a dart at a board and say “we think one can work here.” There is a reason you might see a Supercuts, GreatClips and SportClips within a mile of each other. It is because the marketing demographics showed those brands that the specific area could support the business model. This is something people often forget. When a franchise says it can work where you are, it is because the income, population, demand and competition in the area all point to the success of your location.
Partnership It’s a great way to be in business for yourself but not by yourself. This sums up all of the above. Franchising is partnership. You not only have the support of the parent company, you have the support and guidance of all the other franchisees in the system. And remember, the parent company makes money when you make money. They are invested in your success.
As part of one of the top franchise consulting teams in the country, Eric works closely with clients to understand their goals, values, lifestyle and interests to help coach them through the process of learning about franchising. Eric has worked as the Chief Development Officer for a funding firm focused primarily on funding start-up franchises. He was honored to earn a distinction of Certified Franchise Executive (CFE) by the Board of Governors of the IFA in 2016. Contact Eric at eschechterman@frannet.com
26 The Franchise Woman
January/February 2020 27
Business Trends
5 Franchise
Easy Tips to Improve
Lead Conversion by Marietta Snetsinger So, your marketing is on fire and you’ve got a hot new lead. Now what? If you are new to the franchise qualification and recruitment game, you may have already figured out that converting qualified franchise leads can take some time and effort, and can be downright daunting and frustrating. You are convinced they are only moments away from
1
28 The Franchise Woman
signing the franchise agreement. And then poof... they are gone. No word or explanation. And you are left wondering... What the heck happened? What did we do wrong? How can we get the re-engaged? It can be frustrating and definitely takes its toll on the confidence of your franchise development team.
A few tips to improve your franchise conversion and qualification process
It’s NOT About YOU! It’s all about THEM (at least in the beginning). They will likely ask you lots of questions about your brand (some of it already on your website). BUT once a lead reaches out to you, it is your job to connect. Instead of feeding them endless emails all about YOU and YOUR concept, take a few minutes to ask about them and their goals. By finding out more, you will be better equipped to help them make a valid business decision to join your franchise system.
2 3
Keep Recruitment In-house Know Your UFP Franchisors are often keen to outsource franchise re(Unique Franchise cruitment right away. But early in the game (under 50 franchise units), you would be wise to save your hardProposition) earned franchise fees and re-invest in your business by keeping it in-house. You will learn so much about your offering and what real life leads are seeking in terms of information. Think of it as research to know what you are offering is in alignment with what leads are seeking. Simply put, is your marketing message attracting the right types of leads?
Utilize Technology
There are all kinds of ways that you can incorporate technology into your qualification. Two of my personal favorites are Zoom and Calendly. Zoom is an easy way to connect “eyeball to eyeball” and share slides or even just have a conversation. Because people receive information in different ways, this is a great way to visually and verbally share content. The interaction can even be recorded for viewing by other members of your team. My second favorite technology is a scheduling app. This allows candidates to schedule a mutually convenient time to have a conversation. It also requires the franchise candidate to take some action early and confirm if they are serious about the opportunity. If they take the time to book a time and show up for the conversation, you can bet they are taking the process more seriously. Personally, Calendly.com works well for me but there are many options including Time Trade, Acuity and vCita.
4
Showing evidence of how and what exactly makes your franchise concept unique is crucial. At the customer level or as a business opportunity, your organization must articulate how their needs can be met in a way that is different from the competition. Being able to articulate exactly what you offer can go a long way in helping you to attract the right franchisees. When a lead is doing their research, they will compare you to other concepts. It is important that you clearly communicate why your concept is the right place for them to invest their hard-earned dollars.
The Confidence Game
5
The most common reason for a lead to vanish often has nothing to do with you and everything to do with their own level of confidence and mindset. At some point in the process they are going to have a serious case of “second thoughts” or “the self-doubts.” So just name it, let them know that this will likely happen, and it is your job as a franchisor to be the leader, ease their doubts and help build their confidence as they contemplate this decision. Sometimes they just need a wee vote of confidence. And when it happens, they will remember what you told them.
With more than 20 years of experience in the international franchise industry, Marietta Snetsinger is passionate about establishing solid operational systems and leadership within franchise organizations. She played an important role in developing operational support tools and recruitment strategy with brands including M&M Meat Shops and Baskin-Robbins. She is a well-respected franchise expert and speaks at franchise shows across the country. As the founder of Ascend Franchise Solutions, Marietta works closely with small and emerging franchisors, on a daily basis. Reach out to her at marietta@ascendfranchise.com call 519-212-0309 or visit www.ascendfranchise.com.
January/February 2020 29
30 The Franchise Woman
She is successful
Passion +
Purpose +
Elbow Grease =
Success! by Elizabeth Denham
It seems like common sense that your passion and your work should go hand-in-hand. But sometimes you find yourself on a path where those things do not align. That’s what happened to Leslie Dempsey about five years ago. And when she found her passion and her purpose, she threw in some good old fashioned elbow grease and got to work! “I was a licensed marriage and family therapist, and I had taken some time off to raise her children,” Dempsey said. “When I was ready to look for something, I couldn’t find anything in my field that I was excited about.” After having her babies, Dempsey began working out five days a week, lost all her baby weight and got in the best shape of her life. She incorporated good nutrition habits and invited friends along in her journey to health and wellness. About that time her husband found out about GYMGUYZ® and thought that was exactly what she should be doing. GYMGUYZ delivers in-home personal trainers to your door for customized one-onone or group training. They have franchise locations in 615 cities across the country.
January/February 2020 31
“Helping people achieve their fitness and overall health goals is a positive service. Our job is to motivate you so that you get results and feel better,” Dempsey said. “This kind of positivity makes me so much happier than doing the therapy. In that role, I was frustrated and depressed. There were a lot of barriers to success when I worked in the school system. I felt like I was not really making a difference.” Dempsey has nine coaches and three vehicles in her franchise in Marin County, California. She credits her success to her hands-on approach. She does
32 The Franchise Woman
all client body assessments and reassessments and routinely checks in on them. She wants to get to know each client so she can match the personalities of the clients and coaches to promote optimal success. She added that the business model put together by Founder and CEO, Josh York is supportive and accessible. “Josh has instilled a family atmosphere in the franchise,” Dempsey said. “He is very close with all of his coaches. He is a really present leader and hears what coaches need
and makes sure they have it.” In terms of building her client base, Dempsey has several marketing verticals that have proven effective: Branded Vehicles: We park them in visible areas and people approach us for information. Brand Awareness: We use digital marketing and SEO to keep an online presence active. Events: We do local health and wellness and athletic events to meet new people.
Networking; We are a health and wellness resource for the local Chamber of Commerce. We also attend groups and events to increase referrals. Looking to the future, Dempsey would like to increase corporate partnerships and to get involved in employee health and wellness programs. She and another coach who works for her are also working toward a post-rehab conditioning certification to add medical exercise services to her menu. She is also excited about her partnership with a group called “Cleaning for Kidz.” This group provides cleaning services for families of children with cancer. Her franchise partners with them to offer free and discounted training services to the kids and their families which keeps them active, relieves stress, and puts smiles on their faces. Dempsey believes the true key to success is in the relationships you build during the growth of your business. “Our services are very personal,” she said. “We are in someone’s home. They open up to us about their struggles and goals and this allows us to build relationships. We want all of our clients to know we really care about them. I love the coaches. I love the clients and I look forward to everything I do. I am grateful to be doing what I am doing and to be a part of this franchise.” For more information visit www.GYMGUYZ.com
January/February 2020 33
Ready, Set, Go!
Taking the Plunge
to Business Ownership Working as a franchise coach for countless people, I have learned what is required to take the plunge into business ownership. From management consultants to business executives to corporate refugees, I have helped them navigate through the next chapter in their lives through franchise investment. While every client is different, they each face the same fears: the fear of the unknown. Leaving what most people consider the safety and security of the familiar and walking straight into the unknown feels scary. What are the stressors? What are the risks? Do I have what it takes? These questions run through the minds of most of us when we are consid-
34 The Franchise Woman
ering a drastic change in career path. As a former telecom executive, I am very familiar with the comfort and Am I ready for perks of a corporate career a change? – the bonuses, the raises, the 401k. I also know the deep frustrations of Most of us try to make the best of where we are. We feeling that you are under rationalize that it “isn’t that bad” while talking continually someone else’s thumb, about the things that drag us down in our jobs, wishing for the attending endless and weekend and dreading Monday. Does this sound familiar? Does unproductive meetings, this sound like a person happy in her career? A wonderful career being buried under orga- is so much more than the money it brings. I believe, in fact, that nizational bureaucracy, it is about those things that money cannot buy – time spent and getting caught up in on hobbies and interests, freedom to spend an afternoon at interpersonal politics. the playground with your daughter, independence from the rat-race of ever more possessions. So here is the question: how much are you willing to compromise before you Below, I share the 5 quesare ready to forge your own path? Are you ready tions I ask all my clients. for a change? Answering these questions will help you as you embark on your personal journey from the familiar to the unknown.
What is most important to me? Identifying the “why” of what you are doing is critical. Simon Sinek in his seminal book “Start With Why” says that most people don’t know why they do what they do. Conversely, customers are not attracted to your business because of what you do, but why you do it. Make sense? What motivated you in your career up to now? Money? Responsibility? Aligning your passion and your purpose is not only possible, it is key in What action can I take to finding fulfillment in your career and in your life. Because really, those two things are one in the same. And it is move me closer to fulfillment? possible. I am living proof. So ask yourself, what is most important to you? As Nike famously said “just do it”! I do not say this lightly or flippantly – this is a monumental decision in your life. But think back to a time when you had no choice – when you were fired or laid off or not making your bills. It may have felt insurmountable, but you did something to change it. This is no different. The first step is the most difficult, but each Do I have to do successive step gets easier and easier. So consider the possibilities and ask yourself, what is the first step I it alone? can take? Franchising is the best way to be in business for yourself, but not by yourself. It allows you to surround yourself with like-minded people who share the same goals, values and determination as you. As you move forward, continually analyze who you have surrounded yourself with and make sure they are supportive. Sometimes, when you’re going through a major life change, a life or business coach can be invaluable. A trained professional can help you clarify your motives and values (your whys), and your skills and strengths (your hows) to What am I most afraid of? help uncover the perfect-fit business for you! So consider whether an experienced coach can help you take your Deciding to become an entrepreneur can feel so empowering first and second and third steps toward your goal – but at the same time, terrifying. What is your biggest fear? of owning your perfect-fit business. Is it reasonable or is it exaggerated? Looking back at your life, have your greatest fears been realized? Or have you managed them? Have you been able to overcome most of the things that scared you? This is important to understand because it could be the very thing holding you back. Isn’t not doing anything scarier than taking the chance?
Faizun Kamal is a nationally-renowned public speaker and career strategist. As CEO of The Franchise Pros, Faizun coaches people nationwide on making the transition from employee to entrepreneur. She provides guidance to embrace chaos, fear, insecurity and uncertainty as doorways of opportunity to help individuals find their “perfect fit” business based on an assessment of their personal, lifestyle and income goals. She guides clients to move beyond career burnout to build a sustainable career that they love! Email Faizun at faizun@thefranchiseconsultingcompany.com or call 443-604-6276.
January/February 2020 35
5
Rockstar
Questions
Every First-Time Franchisee Should Ask
Are you thinking of becoming a franchisee but not sure how to find a good fit? If you’re like the majority of franchise prospects, you naturally want to know things like “How much will it cost?” and “How much money can I make?” However, having been a franchisee for 18 years and around franchising almost my whole life, I would recommend going deeper with your questions and check in on the following:
1
Are you passionate about the brand? Your franchise will become like your baby, and if you are not excited about the brand and product or service offering, you are going to get tired of it real fast. You are likely going to be responsible for drumming up business in your local market, so make sure you are passionate about the brand or you will struggle when it comes to bringing in business.
36 The Franchise Woman
2
by Angela Coté
Are you aligned? A sign of a successful company is one that is uber clear on the foundation of why they exist and their core values that drive decision making. Start by lifting the hood on the company’s mission, or sometimes referred to as the company’s “WHY,” and make sure it resonates with you so that you are aligned and set up to succeed. Next, find out what their core values are and what processes are in place to ensure that everyone in the organization lives and breathes these core values. Do the core values sound authentic and do they get you excited?
3
In biz FOR yourself but not BY yourself ! Find out what support systems the franchisor offers. If the response is along the lines of “they have our number and can call us anytime,” this can be a big red flag, as it can mean that the franchisor leaves you to fend for yourself. Most franchisors have the technical support figured out but not every franchisor really understands how to work with their franchise partners to make the relationship feel like a true partnership. Ask the franchisor or franchise partners questions like “How often do we see our field support team in person?” and “What strategies does the company use for helping franchisees build their business and ensure profitability?”
4
The legal documents are your friend. Check the Franchise Disclosure Document to see how many transfers and/or closures the franchise company has experienced and why? For example, if you find out that multiple units have closed due to poor locations, it may be a red flag that the company doesn’t put enough resources into ensuring the location is viable. Transfers can indicate anything from an operator realizing the opportunity was not a fit for them to the franchisor not selecting the right people. If the franchisor is not clear on the qualities of their ideal franchisee, how do they know you are going to be a good fit? Is anyone else being brought onto the team who isn’t well suited to run the business? This could potentially dilute your investment.
5
Technology is also your friend. Technology is such a critical component of small business success. The right technology creates efficiencies that lead to increased profitability and satisfaction. Some questions to ask around technology include: Is the technology simple and easy to use and does it do what the franchise partners need to maximize profitability? What is the communication hub like? How and where can I easily communicate with headquarters and my franchise peers? What metrics are available through technology to benchmark my territory compared to other locations?
What do the current franchisees think of the technology? When it comes to ensuring a franchise system is a fit, take the time to get really clear on what you are getting into. Unfortunately, I come across too many franchisees who feel they went in without digging deep enough into the things that are important to really understand the company. Don’t be one of them − slow things down a little now and it will pay off in spades. Ask the rockstar questions so you can unleash your full potential and optimize your success.
Angela Coté, Franchise Growth Catalyst, works with franchisors to improve franchisee profitability and performance, and helps startup franchisors with where to focus their time, money and energy to achieve sustainable growth. Having grown up helping build her family business to almost 500 franchise locations, Angela has an extensive understanding of the roadmap to success. For more information, visit www.angelacote.com or reach out to angela@angelacote.com.
January/February 2020 37
Policy and Pride The Franchise Woman is excited to Introduce our new “Policy and Pride” column. We plan to report on policy and legislation that impacts the franchise industry and we’ll let you know what’s happening at the International Franchise Association (IFA). We are also thrilled that the IFA has launched a Pride Council. We will cover what they are working on to advocate for diversity and inclusion throughout the industry. Stay tuned, and if there are topics you would like to see represented, please reach out to info@thefranchisewoman.com.
by Elizabeth Denham
The franchise industry in California is holding its collective breath as we enter 2020 with the implementation of the new AB-5 law regarding misclassification of workers. Under this legislation, franchisors must be able to pass all three elements of the standard employment ABC test in order to classify workers are franchisees. According to Stephen Worley, Senior Director of Communications of the IFA, passing the “A” portion of the test is tricky for franchisors. Part A states: ...The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact...
“There is no one who can say they are 100 percent sure they know what will happen,” Worley said. “All we can agree on is that no one knows, but none of it is good for franchising.”
38 The Franchise Woman
This law sets franchising up for complicated situations where franchisees could be classified as employees of franchisors. “We want to be clear that we are not trying to criticize this bill. We support proper classification of employees,” Worley explained. “We are just looking for a franchise exemption.”
Long-term impact of this bill could include increased financial burdens on franchisors in terms of Worker’s Comp, liability and insurance costs, reduced expansion by franchises in the state of California and decreased ability of franchisors to offer support to franchisees. The IFA is actively involved in trying to obtain an exemption as this law goes into effect January 1, 2020. Stay tuned for updates.
Pride The IFA launched a Pride Council in September. The Franchising Pride Council will provide opportunities for mentorship, foster discussions around best practices and create a forum for sharing experiences to benefit others. Representative Chris Pappas (D-NH1) attended the launch and said, “where the business community stands today is ensuring everyone has the opportunity to make it up the ladder.” One of the chief goals of the Council will be to encourage more LGBTQ entrepreneurship and make business ownership a more attainable goal for the members of this important community.
Executive Vice President of Franchise Development at FASTSIGNS® and Council Chairman Mark Jameson said, “diversity is a key part of franchising and I believe this Council is such a big step towards expanding that hallmark of our business model to the LGBTQ community.” Stay tuned for our March issue where we will feature members of the LGBTQ community to highlight why this is such an important step in the franchising industry.
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). For more information, visit www.franchise.org
January/February 2020 39
Legal Tools
Understanding
Franchise
Models by Julie Lusthaus
One of the most important decisions a franchisor must make is what type of franchise model to offer. The decision to go with one over another is strategic and requires a franchisor to consider how they want to expand their franchise
40 The Franchise Woman
and what type of operators they want to have. There are four main types of franchise models for business format franchising: Single Unit, MultiUnit Development, Conversion, and Master Franchise.
Single-Unit This is the most common type of franchise. Essentially, the franchisor offers a franchisee the right to operate one franchise business. If the franchise requires a brick and mortar presence, then the single unit franchisee typically buys the right to operate at a physical location. In addition, the franchisee may receive some territorial protection prohibiting the franchisor or other franchisees from operating within that designated territory. Territories are typically defined as a radius surrounding the physical location (e.g., 1.5 miles), by zip code or by population. Where the franchise business is a service business that does not require a physical location, the franchisee is often provided a geographical territory within which it must operate. In a single unit franchise, the individual owner(s) of the franchisee entity often oversee the day-to-day operations of the business.
Multi-Unit Development In this franchise model, the franchisor sells a franchisee the right to develop multiple locations within a designated territory. This is also known as an Area Development Franchise. Here, the area developer is typically granted an exclusive area in which to develop a specified number of franchised businesses pursuant to a negotiated schedule. The appeal for franchisees is that they can develop several franchises in a region to take advantage of market conditions, increase revenue quickly, improve efficiencies or reduce costs by running multiple local businesses. Franchisors benefit from having fewer franchisees to manage, receiving some compensation upfront in consideration for holding the territory open for the area developer, and expanding their franchise more rapidly. With a multi-unit offering, the franchisee (and/or developer) signs a franchise agreement for the first location as well as a development agreement pursuant to which the additional franchises will be developed. However, when it comes time to develop each additional franchise, the franchisee will also sign a separate franchise agreement for each such franchise.
Conversion A conversion franchise is used when a franchisee already has an existing operating business but wants to convert it into a franchise. For example, a restaurant owner wants to buy the right to use the name and franchise system of a well-known restaurant franchise. The franchisee will likely have to make changes to its business, including a name change, possible renovations, new computer systems, etc. The franchisor will likely benefit from a quicker launch of the location. The franchisee may also have an established customer base which means more revenue for both parties.
January/February 2020 41
Master Franchise Sometimes, a franchisor will want to sell a franchisee the right to offer and sell franchises to other franchisees. In this franchise model, the franchisor becomes a “master franchisor” and the franchisee assumes the role of a “master franchisee” (or “subfranchisor”). The master franchisee does not own the franchise system but acts as a middleman in developing additional franchises. These types of arrangements generally occur when a franchisor is a foreign company or unfamiliar with a particular region or market and wants to grant someone local the ability to sell and oversee franchises in a designated territory on the franchisor’s behalf. The master franchisee not only recruits franchisees but will also provide training and ongoing support. As a result of the extra layer of control required because of the master franchisee’s oversight, there may be some inefficiencies but the franchisor benefits from having the master franchisee assume the risks and obligations of supporting local franchisees.
Before preparing the FDD, franchisors should consider which franchise model to offer and develop an appropriate business expansion plan. This decision about a franchise model will affect the FDD significantly and may require preparation of additional disclosure documents and/ or agreements. Before you decide which one is best for your franchise, consult an experienced franchise attorney to evaluate the advantages and disadvantages based on your goals for your business and prepare the documents you need to protect your interests.
Julie Lusthaus represents franchisors, franchisees and independent business owners. To learn more, visit her website at www.lusthausfranchiselaw.com
42 The Franchise Woman
Work-Life Balance
Searching for the
Unicorn
of Work-Life Balance by Kristen Horler, MS
For several years I heard working moms talk about ‘achieving worklife balance.’ So, like most working moms, I searched for it, only to feel like an absolute failure over and over again. I read books and articles and spent hours with my leadership coach, trying to find the secret to being a wife, mom, and
CEO, without losing my mind and losing myself. On Monday, I yelled at the kids for being late as we left the house for school. On Tuesday, I could not find two minutes to speak to my husband. On Wednesday, I was
stuck in traffic and showed up late for a meeting. On Thursday, I was too tired to make dinner and we put frozen pizzas in the oven. The list of apparent mom failures continued on and on. I wanted to be present for my children, have time to connect with my husband, make dinner for our family and get us all
January/February 2020 43
to sit at the table together when we ate. The irony was I also juggled the demands as CEO of a franchise dedicated to fitness & nutrition programs for moms. My business is focused on family-first and helping moms achieve work-life balance. How could I help moms if I was struggling with finding balance in my life? In 2018, I experienced significant loss for the first time. In less than a year, I lost my grandmother, my younger brother, and my parents divorced. At the same time, my husband’s parents were going
44 The Franchise Woman
through significant health issues in England, resulting in additional travel and stress for our family. The unexpected gift of loss for me was the realization that something is better than nothing. I spent most of my adult life not knowing that I was setting myself up for disappointment. I have expectations of myself that are…can I say it…unattainable. While eating together as a family is a priority for me, it’s not a priority for my two teenagers or my husband. Just me. I value having a few minutes together at the end of the
day to catch up and connect. I also know that our oldest child will be leaving for college in six months and our time with our youngest child is limited, so I’m holding on to every moment with them. So, when I declared to my family that we were going to start having dinners together six days a week, they complained and came up with every excuse to get out of it. But, I was committed, and I stuck to my goal. Within the first week, the rest of the family discovered what I (clearly) already knew; we really enjoyed spending time together! However, by week three, when I had work
deadlines rapidly approaching, I discovered that something had to give. Either my work was going to sacrifice or my sanity. So, as any experienced CEO does, I asked for help. My 18-year-old daughter agreed to make dinner one night a week and my husband said he would help with two more nights. Then, my daughter had the audacity to suggest that we cut back on the number of nights we ate together. I was horrified. How could she say that?!? But, I also knew that I couldn’t keep going at this pace.
It was at that point that I did the unimaginable; I lowered my expectations. We began to have dinner at the table two to three times a week instead of six. Since we didn’t always have the energy to go out at the end of a busy week, my husband and I started to discover different ways of enjoying date night, even if it was a trip to Costco together on a Tuesday night.
out amazing but turn into afternoons that feel like everything is falling apart. There are days that you are on cloud nine and you know you can change the world, and there are days where you question yourself and your decisions. The important thing is to have clarity in your priorities, stay true to your values, and be intentional in all that you do.
In my decade-long attempt to achieve work-life balance, I realized that there isn’t a golden ticket. Just like building a franchise system, there are ups and there are downs. There are successes and there are failures. There are days that start
I remain adamant about no phones at the dinner table and no work after 6:30 p.m. I try to be fully present with my family and friends, and I am still trying to find joy in being ‘lazy’ and eating pizza on the couch with my husband.
Kristen Horler is a recovering overachiever who is learning to let more stuff go that is not aligned with her priorities and goals. As a former pastry chef turned fitness professional, Kristen created Baby Boot Camp shortly after her first child was born in August 2001. After extensive research, she was unable to find an effective workout that didn’t require hiring a personal trainer and a babysitter. Drawing from her experience as a fitness professional and new mom, Kristen developed Baby Boot Camp to balance the fitness needs of new moms. Kristen is passionate about food, fitness, and inspiring wellness. She enjoys cooking, spending time with her family, and traveling. Visit www.babybootcamp.com to learn more.
January/February 2020 45
It’s Never Too Late To Be
A Female
Entrepreneur
by Susan Scotts
If you’re over 50, chances are the decision to leave a job won’t be yours. A new data analysis by ProPublica and the Urban Institute shows more than half of older U.S. workers are pushed out of longtime jobs before they choose to retire. The analysis found that between the time older workers enter the study and when they leave paid employment, 56 percent are laid off at least once or leave jobs under such financially damaging circumstances that it’s likely they were pushed out rather than leaving on their own. As the world around us changes, and existing industries and companies are disrupted, careers will be disrupted as well. Chasing corporate careers to the top is certainly not the only way to achieve success.
46 The Franchise Woman
There are many reasons why a woman in her 50s might choose to forge a new career path. As life expectancy rises, there is a whole new phase of life that people look forward to, like staying active and keeping the brain stimulated through work. There is also a financial imperative to make sure the future is secure as you live longer. Many have been laid off, and others have always had a desire to become self-sufficient or reinvent their careers.
for those aged 65 and older, the number is put at 132 percent, the biggest rise of any demographic.” Whether you are laid off or downsized or have always had an entrepreneurial desire and choose to begin something new, you have options you may have never thought about.
You can begin a business from scratch. While many have succeeded in this path, it takes considerable According to The Guardian, “A time and money, not to mention an fifth of new businesses are being idea that is unique, coupled with founded by over 55s. It is a boom time for middle-aged entrepreneurs. the marketing to get the business Barclays Bank reported a 67 percent off the ground, and you are likely working alone unless you have conincrease in women over 55 opening business accounts in the last decade; siderable working capital to invest.
Instead of starting an untested venture, choosing a franchise can be more appealing for women later in life. Since they may have been out of the workforce for a while to take care of the kids, many may be thinking they missed the boat to business ownership. But with more time on their hands with children who are grown, franchising is a much shorter path to ownership than starting from ground zero. A franchise is simply a proven system of doing business with tools, technology, training, marketing materials and ongoing support. You’re not alone, because although you’re in business for yourself, you’re not by yourself. And you don’t have to have experience or background or knowledge in an industry. You can find something in your wheelhouse that uses your skills or interests even though it may not be the same industry that you were previously in. And the upside: at a more mature age, you will have more experience and contacts to draw from. Women are investing in franchises at a rate far faster than men. In fact, women flock to franchising, according to The Wall Street Journal December 2, 2019 report. “As of May, women own or co-own 35 percent of the franchise outlets in the U.S.—around 265,000—according to the Franchise Business Review research firm. That represents outlet growth of 25 percent from a decade earlier, and in the two years ended in May, 41 percent of new franchise outlets opened have been owned or co-owned by women. The growth reflects women’s growing prominence in the corporate world. As women gain access to more resources and connections, they are starting businesses of their own.“
January/February 2020 47
Martha Stewart is just one of the many entrepreneurial women who decided later in life to reinvent herself.
Some examples of women who decided later in life to reinvent themselves include Ariana Huffington who created the Huffington Post at the age of 55; Martha Stewart, who published her first book ‘Entertaining” after the age of 41; Joy Behar, former co-host on The View, a high school English teacher who didn’t launch her show business career until after age 40; Laura Ingalls Wild, who was 65 years old when Little House in the big Woods was published; Vera Wang who didn’t enter the fashion industry until the age of 40, and is now one of the world’s most respected names in fashion; Julia Child, who worked in advertising and didn’t release her first cookbook until the age of 50 which then catapulted her into stardom; Mary Stuart Masterson, who didn’t start her film studio and production company until the age of 50; and Nina
Zagat, who turned 42 before giving up a legal career to write the first restaurant guide with her husband. Of course, there are many examples of men as well. Colonel Sanders was 65 before he franchised his company KFC. Ray Kroc, founder of McDonalds, was 52 when he purchased the burger and shake franchise. And a man by the name of Sam Walton was 44 before he opened the first true Wal-Mart. Another example is yours truly. At age 42, I was tired of rushing to work, sitting at a desk all day and then fighting rush hour traffic again to get home where there was more work waiting for me like cooking dinner, doing laundry and housework. Not to mention, I constantly faced the aggravation of out of state travel
and working nights, evenings and weekends. Even though I was in the franchise industry in an executive role, I did not own my own business and knew I had plateaued. So I decided to take the leap of faith and begin my own franchise. It was the best thing I ever did! I earned three times what I was making working for someone else, and I had complete control over my schedule. I even joined a women’s competitive tennis league and play several times during the week! If you have an entrepreneurial drive just waiting to come out, you owe it to yourself to take the first step toward franchise ownership. Who knows, maybe one day your success story will written about in this magazine!
Susan Scotts is a multiple award winning career transition coach with The Entrepreneur’s Source® and possesses three decades of experience in helping empower individuals to become entrepreneurs through franchise business ownership. For a complimentary consultation, she can be reached at 561-859-9110 or SScotts@EsourceCoach.com.
48 The Franchise Woman
PUSHPA KUNWAR The Patch Boys Las Vegas, NV
TAMARA HOLMES The Patch Boys Central VA
LEA RUBINSTEIN The Patch Boys Ocean County, NJ
LISA KALEZIC The Patch Boys Raleigh, NC
Don’t Let Our Name FOOL YOU The Patch Boys is a Great Business for Women • Niche Concept
• Flexible Schedule
• Low Cost of Entry
• Low Overhead
• Quick Startup Time
• High Margins
• Home-Based Business
• Ideal Work-Life Balance
Holes in your ceiling? We can help!
www.holeshappen.com
844-99-PATCH
January/February 2020 49
Featured Franchises
The Patch Boys® The Patch Boys solves a common problem for homeowners: repairing drywall. Whether the electrician left a hole after replacing a light, a leaky pipe ruined the bathroom ceiling, or the kids decided to play catch in the living room, holes happen. While repairing drywall may sound easy, contractors usually won’t take on such small jobs and most homeowners don’t have the time or skill to do the work themselves. The Patch Boys specializes in this in-demand service and has created an easyto-run, home-based franchise opportunity for investors. With more than 100 locations, this fast-growing brand has won many accolades, including ranking on Franchise Business Review’s “2019 Most Innovative Franchises” and Entrepreneur magazine’s “2019 TOP 100 New Franchises to Keep Your Eyes On.” For more information, call 844-99-PATCH or visit www.thepatchboys.com.
50 The Franchise Woman
The Original Popcorn House The Original Popcorn House is popping up in cities across the country. They feature over 60 handcrafted, gourmet popcorn flavors, homemade sweet treats, and deliciously crafted, cinnamon frosted, praline nuts. Every family-owned and operated small business franchise can sell gourmet popcorn through retail locations, wholesale, catering, fundraising, special events, corporate accounts and E-commerce. Franchisees benefit from exclusive training at Original Popcorn House’s headquarters in Delray Beach, Florida. You’ll receive a hands-on “popping” experience, plus operations, marketing and business management support. This is a low-cost and unique franchise opportunity. For more information, visit www.originalpopcornhouse. com.
JOBSITEIMAGE Challenge Island®
Jobsite ImageTM What’s in your walls? Jobsite Image customers know! An innovative service, Jobsite Image photographs what’s behind the walls of newly-constructed and renovated homes and catalogs the images with a unique system that includes a web-based page and login for each client. Every pipe, duct and MEP element can be accessed with one click. Customers love the service since it can save them money and aggravation down the road. For investors, Jobsite Image offers an easy-to-run, home-based business with low startup costs and very little overhead or competition. For more information, contact 877-my-jobsite or visit www.jobsiteimage.com.
Challenge Island is an Entrepreneur Magazine’s Franchise 500-ranked international educational enrichment program with nearly 100 locations in the U.S. and worldwide. Founded by award-winning educator, author, and parenting/education journalist Sharon Duke Estroff, Challenge Island® is grounded in cutting edge educational thought and at the forefront of S.T.E.A.M. education and 21st century learning. Wrapped in whimsical trimmings (headbands, face paint, and the beat of the tribal drum), the Challenge Island program features an unmistakable spirit and flair. A sense of anticipation fills the air as tribes of kids enter new worlds of adventure and imagination through Challenge Island afterschool classes, in-school field trips, camps, birthday parties, family fun nights and much more. For more information, visit www.challenge-island. com.
January/February 2020 51
Connecting on Social Media
Follow Us on Social Media @thefranchisewoman
thefranchisewomanmagazine
@WomanFranchise
The Franchise Woman
52 The Franchise Woman
Women on the Move The Franchise Woman would like not only to inspire women to achieve their dreams of successful business ownership, but also recognize women who are owning it, killing it and making big moves in the industry.
Gina Bridges-White
Franny Tacy
Kim Scott
Gina Bridges-White is the newest franchisee of America’s Color Consultants. She’ll serve the greater Charlotte, North Carolina area and will assist homeowners and small businesses with their paint color choices. For more information call 980-322-4052.
Franny Tacy, Co-CEO of Franny’s Farmacy, is the first female hemp farmer in North Carolina in over 75 years continuing to expand with multiple franchises.
ServiceMaster Global Holdings, Inc., a leading provider of essential services to residential and commercial customers in the termite, pest control, cleaning and restoration markets, announced Kim Scott has joined as president of Terminix Residential.
January/February 2020 53
Cindy Mockler
Amelia Wicaksono
Edible BrandsÂŽ named Cindy Mockler Vice President of Innovation.
Amelia Wicaksono is the proud instructor of Kumon Math and Reading Center of Franklin Square, NY as a new franchisee.
Christina Clarke Wingstop Inc. appointed Christina Clarke Chief Marketing Officer.
54 The Franchise Woman
Contact Us Let us help you grow your brand! Find out how we can target your next franchise owner. We strive to create an amazing resource for women in the franchise industry. Please contact us at any time.
251-300-1324 www.TheFranchiseWoman.com info@thefranchisewoman.com
January/February 2020 55
56 The Franchise Woman
www.TheFranchiseWoman.com
