k e e p i n g
BUSINESS JOURNAL
b u s i n e s s e s
c o n n e c t e d ™
JANUARY 2019
VOLUME 4 ■ ISSUE 1
IN PROFILE
NORTH COUNTY CORRIDOR
Magnetic Wellness in Oakdale is using pulsed electro-magnetic frequencies to ease their clients’ aches and pains. PAGE 3
NEWS
Prime Shine Car Wash will undergo a rebranding in the region after the business was purchased by an Arizona-based company. PAGE 6
PHOTO CONTRIBUTED
Stanislaus County officials and outgoing Congressman Jeff Denham discuss the North County Corridor project that is expected to make a major impact on moving goods and products through the region.
Connection project awarded $20M
T
STAFF REPORTS 209 Business Journal
he U.S. Department of Transportation has awarded four California projects $72.5 million in grants from its BUILD Transportation Discretionary Grant program, formerly known as TIGER grants. Among the projects in line for funding is the North County Corridor. In November 2016, residents of Stanislaus County voted overwhelmingly to approve Measure L, instituting a special 25-year, one-half cent sales tax increase for local transportation improvement projects. This designated Stanislaus a “Self-help County,” creating opportunities for federal funding like the TIGER and BUILD grants. “Stanislaus County has had strong leadership in the Public
Works department. The team has worked hard to secure the necessary funding for road infrastructure work,” said Paul Van Konyenburg, of the California Transportation Commission. “But they didn’t do this alone. We are so grateful that Senator Dianne Feinstein fought for us, and that Jeff Denham represented well in Washington on our behalf to highlight the needs of our community.” “The passage of Measure L and becoming a Self-help County has made an enormous difference. We are able to compete well with leveraging funding,” said Vito Chiesa, Stanislaus County Board of Supervisors. Congress tripled the funding for the program this year to $1.5 billion. California’s $72.5 million is eight times the amount re-
ceived last year. “This is outstanding for Stanislaus County. The North County Corridor is a critical inter-regional connectivity project that will positively impact the movement of our goods and services,” said Supervisor Terry Withrow, who has been a leader for regional projects, ensuring their forward momentum. “Investment in our transportation infrastructure is necessary for California’s long-term economic growth,” added Senator Feinstein. “These grants, combined with state and private funding, will ensure these vital projects can move forward. California projects funded include: •$20 million for Stanislaus County to build three miles of the new SR 108 North County Corri-
dor, a six-lane expressway. • $15 million for San Francisco roadway improvements on Market Street between 6th and 8th streets, including roadway resurfacing, streetcar track replacement, upgrading traffic signals and a new F-line streetcar turnaround loop at McAllister Street and Charles J. Brenham Place. •$20 million for Imperial County to widen the existing bridge at the Calexico Border Patrol Station to accommodate two additional northbound commercial truck lanes, two additional northbound passenger vehicle lanes, and bicycle and pedestrian improvements. • $17.5 million for Kern County to widen five miles of Route 46 to four lanes in each direction, add one mile of bike lanes and sidewalks, and build a new bridge.
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JANUARY 2019
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IN PROFILE
New farm supply shop offers ‘elite’ service BY ANGELINA MARTIN 209 Business Journal
Armed with a knowledge of the industry derived from his own experiences, Modesto native Erik Rosales has opened up shop in Turlock, ready to provide the community with supplies for their pets and livestock at Elite Farm Supply. Since opening in September, Elite Farm Supply has provided another shopping option for Turlock animal lovers in search of kibble for their dog, feed for their horses or even a new chicken to add to their coop. Rosales decided to branch out on his own and open the store after working with his father for the past several years at Rosales Feed and Supply in Ceres, he said, and settled on Turlock as the perfect location. “It feels like more of a country town here. There are a lot of little farms,” Rosales said. “Even downtown there are a lot of houses, where everyone has cats or dogs or some sort of pet…we’re just try-
Elite Farm Supply Type of business: Rancher, farmer and pet owner supply store Location: 225 Lander Ave., Turlock Hours: 9 a.m. to 5:30 p.m. Monday through Saturday; 9 a.m. to 1 p.m. Sunday Contact information: 209-620-8775 Specialty: Poultry
ing to provide a service for all of those different people and, hopefully, do a good job.” Elite Farm Supply caters to the average farmer, with plenty of feed, seed and care items for larger animals, as well as the common pet owner thanks to a wide variety of leashes, accessories and food for dogs and cats, mice and other goods for feeding reptiles and even a selection of smaller pets, like hamsters. While Rosales considers himself an expert in nearly all of these areas, Elite Farm Supply’s true specialty is its poultry, he said, which offers customers a wide variety of chicken breeds to choose from for their own coops, as well as supplies
to get any potential coops up and running, including the coops themselves, brooders, heat lamps and more. Come springtime, the shop will have baby chicks to choose from, he added, and any breeds that the store doesn’t have in stick can be ordered upon request. Rosales said that he is constantly learning more about the feed industry when he can, talking with local veterinarians and farmers so that he’s always able to answer any questions from customers. It’s this personal time he puts into both knowing his business and customers that sets him apart from other, larger pet stores in town, he said. Being a family-owned
ANGELINA MARTIN/209 BUSINESS JOURNAL
Erik Rosales stands in his recently opened feed and pet supply store, Elite Farm Supply, located on Lander Avenue in downtown Turlock.
business lets him not only communicate with his customers more efficiently, he said, but also allows the shop to be more lenient on its pricing. “Here, it’s more oneon-one with the owner so
you can usually get a better price with us,” he said. “Coming from a background of raising farm animals, I also think it’s always better to have someone that knows what they’re talking about.
“We have a good idea of what people need, so we can show them what to use and what will work for them, instead of just thinking something might work.”
BEMER Therapy offered in Oakdale BY TERESA HAMMOND 209 Business Journal
The concept is simple, yet the effects profound. Cutting edge technology has found its way to Oakdale and owner Bree McClintock could not be more excited to share it with the community. McClintock recently opened Magnetic Wellness featuring BEMER Therapy. It’s a system which helps increase energy, assists the body in healing, as well as offers immune system support. All this through the
stillness of lying on a table, similar in appearance to a massage table, which features a mat attached to a machine that sends “pulsed electro-magnetic frequencies” through the body. BEMER sessions may range from eight to 30 minutes, depending on the client’s needs and/or ailments. It ultimately promotes circulation in the individual’s body, which in turn brings with it great benefits to one’s overall health.
“Circulation is everything. It helps you out of pain,” McClintock said of the BEMER system and her discovery of it. “It helps with sleep, it helps with depression.” Now five years in the essential oil business, McClintock has seen the positive profound effects that non-traditional treatments can have on the body, mind and spirit. She has seen the benefits of BEMER Therapy not only on herself, but her SEE MAGNET, PAGE 6
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JANUARY 2019
IN PROFILE
Masa Latina opens in Manteca BY VINCE REMBULAT 209 Business Journal
Masa Latina is not another taqueria. Rather, this new Latin American restaurant in Manteca offers up dishes closely related to that of the familiar Mexican fare. Take guasacaca, which is a Venezuelan avocado sauce akin to guacamole. Along those lines, Masa Latina doesn’t have chips and salsa on the tables of this refurbished building with an interior consisting of a backroom that can double up as extra dining space and catered banquet space for special or private events. “What we have is comfort food from Latin America made with fresh masa,” said owner Arturo Zarate. Masa is made from ground corn soaked in a lime and water solution. Masa Latina is in a familiar free-standing lot at 1800 W. Yosemite Ave., directly across from Kaiser Permanente Manteca Medical Center. There’s been a number of businesses
VINCE REMBULAT/209 BUSINESS JOURNAL
Masa Latina owner Arturo Zarate and restaurant manager Isis Alfaro.
at the place from over the years. Zarate, who is from Tracy, spent over a year with the remodel. “We gutted, tore down, and rebuilt the inside of this building,” he said.
Zarate also saw plenty of potential. “I like the place and I like the location,” he said. Newly placed sliding wooden doors allow for the separate dining areas
in the back room – both have a seating capacity of over 100. An empty patio in what used to be part of the parking lot is now gated for outdoor dining that’s part of the future plans.
The front room consists of dining and a bar – Zarate is in the process of waiting for his liquor license for the latter. The plans call for a full bar with beers of tap featuring some of the local microbrews. From there, he’s also looking to extend his business hours past the current 10:30 a.m. to 9 p.m., Mondays through Thursdays; and 10:30 a.m. to 10 p.m. on Fridays. Zarate is also the owner of Mile Wine Co., a neighborhood establishment on Stockton’s Miracle Mile. He took over the place at 2113 Pacific Ave. in November 2017 at about the same time he purchased the Masa Latina. Masa Latina is also a family restaurant with Latin American décor using the work from local artists. He had a soft opening, bringing in curious customers who spread the word on the new business via word of mouth or social media (Facebook, Instagram, Yelp, etc.) during the past month. “The food is very fresh and presented well in its plates – everything was fresh and pretty goodsized portions,” said one
Yelper post. Masa Latina offers up papusa – an El Salvadoran street food – a thick, griddled corn cake with a savory filling. Emplanadas, arepas and puffy tacos are also on the menu. Emplanada is a Spanishinfluenced pastry turnover filled with savory ingredients. Arepa is a cuisine of Columbia and Venezuela made of ground maize dough and accompanied with cheese or avocado. The puffy taco originated in San Antonio – an uncooked corn tortilla is quickly fired in hot oil and then filled with meat, cheese, and veggies. Masa Latina, in addition, has a variety of “Twisted Fries,” including Asada Fries, BBQ Pork Fries, Taco Fries, Buffalo Chicken Fries and Veggie Fries. As for the grand opening, Zarate was officially welcomed as a new business in town by the likes of the Manteca Chamber of Commerce, elected officials, and police and fire personnel, to name a few. For more information on Masa Latina, call (209) 6474928.
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209 209BUSINESS BUSINESS JOURNAL JOURNAL
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OPINION
Vol. 4 No. 1 ■ January 2019 PUBLISHER Hank Vander Veen
Talent wins games, but teamwork and intelligence win championships. —Michael Jordan
GENERAL MANAGER Drew Savage
MANAGING EDITOR Sabra Stafford
NEWSROOM Dennis D. Cruz Kristina Hacker Teresa Hammond Glenn Khal Angelina Martin Candy Padilla Paul Roupe Virginia Still Dennis Wyatt
CREATIVE DIRECTOR Harold L. George
GRAPHIC DESIGNER Sharon Hoffman
ADVERTISING DIRECTORS Chuck Higgs
SALES & MARKETING Chris Castro Beth Flanagan Dawn Hamilton Corey Rogers Melody Wann Charles Webber Jennifer Webber
American civic life tries to make a comeback BY SALENA ZITO Creators Syndicate
It’s just before 7 p.m. on a frigid December night, and already the Allegheny Elks Lodge No. 339 on the city’s North Side is filling up quickly — both the long bar and the tables in the adjacent hall. There’s a woman collecting for a 50-50 raffle. (You may as well give in; she won’t take no for an answer.) Elks volunteers young and old are manning the bar and the kitchen, where the special tonight is a gourmet grilled cheese (black forest honey ham, Gouda cheese and bacon). Upstairs a six-lane sparkling white and red art deco bowling alley straight out of the 1920s is filled with young people from a local league. The floor above that is where lodge meetings are held; it is a beautiful ballroom also straight out of the Roaring ‘20s. The beer is cheap and cold. The food is cheap and tasty. Soon the entire building is packed to the rafters, people lining the walls in the hall and the bar. It’s as if Frank Capra made a movie in this century. Ad Feedback Tonight is Banjo Night, the weekly event when the Pittsburgh Banjo Club takes to the stage in the 90-year-old building. The event attracts an eclectic mix of college students; suburbanites; pink-haired, inked, multi-pierced artists;
and octogenarians all joining in to sing along to tunes like “Daisy, Daisy” and “You are my Sunshine.” There’s even a free song sheet, but it carries a stern warning: “Thou shall not take with you.” This is not an Elks event, as the Banjo Club rents the hall every week. Still, its presence at the lodge has helped reignite interest in the civic organization that first came into being just after the Civil War. A group of young actors initially formed a social club to elude New York City’s strict Sunday tavern hours of operation. Theatrical shows would end too late for them to grab a drink after a show. The Jolly Corks, as they were originally called, evolved into a charitable civic group through tragedy. One of the original members died, leaving his widow and children destitute, and they all chipped in to ease her financial stress. This moment transformed their organization from the social Jolly Corks to the service-oriented Elks. Memberships in civic organizations such as the Elks or Masons or Rotary Clubs peaked across America after both world wars, and they began falling in the 1960s when Americans began shedding fraternal socialization and front porches for television shows in their living rooms and backyard decks.
Since the late ‘90s, all of them have rapidly faced near extinction, thanks to the isolating effects of gaming and smartphones, and the anti-social components of social media. These things erase that sense of community, security and civic duty that fraternal organizations can cultivate. By 2012, the membership at this Elks had hit a low, only 340 members remaining, and most of them were closer in age to 80 than to 70. The community was ebbing in fast-forward, and
that social capital was evaporating. Ad Feedback And something else was fading: the tradition of elders sharing stories, sometimes tall tales, passing on their wisdom and experiences to the young people in the community. It’s the kind of knowledge and information you can’t Google or ask Alexa to find for you, the kind of knowledge that shapes the character of men and women and a community. SEE AMERICAN, PAGE 6
DIGITAL Frankie Tovar Rich Matheson
To advertise in 209 Business Journal, call Manteca • 209.249.3500 Oakdale • 209.847.3021 Turlock • 209.634.9141 209 Business Journal is published monthly 122 S. Third Ave • Oakdale, CA 95361 Information: dsavage@209businessjournal.com 209businessjournal.com The Oakdale Leader USPS No 178-680 Is published weekly by Morris Newspaper Corporation, 122 S. Third Ave. Oakdale, Ca 95361 ©Copyright 2019. 209 Business Journal All rights reserved. Reproduction in whole or in part of any text, photograph or illustration without written permission from the publisher of 209 Business Journal is strictly prohibited. The opinions expressed in 209 Business Journal are those of the authors and do not necessarily reflect the view of 209 Business Journal management or owner. 209 Business Journal assumes no responsibility and makes no recommendation for claims made by advertisers and shall not be liable for any damages incurred.
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JANUARY 2019
NEWS
Prime Shine Car Wash purchased by Arizona company BY ANGELINA MARTIN 209 Business Journal
After nearly 30 years of service to the Central Valley community, Prime Shine Car Wash will soon be known by another name. Prime Shine grew from a single Modesto location in 1991 and was started by founder and Chairman Norm Porges, who began with the goal of changing how Californians think about washing their cars. That legacy will continue through Mister Car Wash — an Arizona-based company which has more than 250 car washes and 30 oil change express locations in 21 states. The Prime Shine acquisition, which includes 19 car washes in 12 cities (Modesto, Ceres, Turlock, Manteca, Oakdale, Lodi, Riverbank, Atwater, Patterson, Merced, Tracy and Los Banos), represents Mister Car Wash’s second investment in California. “Finding the right company to continue our legacy was important to us,” Norm Porges said. “We spent considerable time vetting potential buyers for one that would match our people-first culture and passion for washing cars.”
Since its start, Prime Shine has been recognized numerous times for its commitment to business leadership, employee excellence and environmentally-sustainable practices like filtering, recycling and recycling water as well as solar energy and LED lighting. Nearly 95 percent of the fresh water at every Prime Shine facility is captured for potential reuse, and each wash uses only about 30 gallons, saving millions of gallons of water every year in comparison to people washing their vehicles at home. These water conservation efforts landed Prime Shine a spot as one of only a few members of the International Carwash Association’s Water Savers environmental certification program in the Northern San Joaquin Valley. In 2013, Prime Shine created its internal training and developmental program Prime Shine University, designed for its employees to become better members of the community and better leaders. The company’s commitment to philanthropy — via the Prime Shine and Porges Family Foundation — ben-
ANGELINA MARTIN/209 BUSINESS JOURNAL
Prime Shine Car Wash, which operates 19 locations throughout the Valley, was recently purchased by the Arizonabased company Mister Car Wash and will undergo rebranding this year.
efitted many important organizations and programs within its service territory, and despite Prime Shine’s sale, Norm and Prime Shine president/CEO Evan Porges expect to continue their involvement in community causes. Norm and Evan Porges also helped develop the Champions of the Ameri-
TERESA HAMMOND/209 BUSINESS JOURNAL
Wellness specialist Bree McClintock, right, helps new client Faith Lisson during a Magnetic Wellness session using BEMER therapy. McClintock recently joined the Body Tropics team in Oakdale, using a space within the building to bring the advanced therapy to the community.
MAGNET
FROM PAGE 3
family as well. So much so, she approached Body Tropics owner Kama Robinson with the idea of bringing it to the community. “It already went hand in hand with what she was doing,” Robinson said of her essential oils business. “She’s such a natural healer, it made sense. She’s so good at it.” Robinson shared her own positive outcome from not just use of the oils, but the BEMER therapy as well, noting
that in addition to spending time on the mat, she places the pad (used for concentrated treatment) on her gut to aid with her overall gut health. “I live with the belt on my gut,” she said of her treatment time with McClintock. “Everybody likes it on their back and on their spine, which is great. I put it on my stomach. After a week I’d hear my stomach gurgle every time.” According to McClintock the increased circulation throughout the body, opens the capillaries aiding with anything from aches and
can Dream program at California State University, Stanislaus, which honors the entrepreneurial and community spirit of innovative leaders from the Central Valley. “We are honored to be entrusted with one of the industry’s best businesses,” Mister Car Wash president and CEO John Lai said. “The Porges fam-
muscle pain to better digestion (i.e.: gut health). Recommended usage is twice a day, but with 16 to 24 hours of effectiveness post treatment, McClintock shares every other day may prove powerful for most. McClintock believes so much in the treatment that she is currently offering the first two treatments for free. Clients can then pay per visit or purchase a monthly pass. “When you unblock all your capillaries, your heart’s not having to work as hard,” she said. “It (the magnetic pulse) promotes circulation.” With just a few months of providing the service and the testimonials already coming in, McClintock becomes emotional when posed with the question of why she enjoys bringing this to the community. “The reward is just making people feel so good,” she said through tears. “I love helping people. It makes me feel good.” Magnetic Wellness is located in the Body Tropics building at 131 S. Second Ave., Oakdale. Hours are Monday to Friday from 9 a.m. to 6 p.m. and Saturday from 10 a.m. to 4 p.m. For additional information or to arrange a complimentary appointment call (209) 505-4374.
ily has built a business that is grounded in service and giving back, and is a pillar within the Central Valley community.” As Mister Car Wash works to rebrand all 19 Prime Shine locations, operations will continue at each site and nearly all 200 of the company’s employees will be offered the opportunity to stay in their
AMERICAN
FROM PAGE 5
Today the membership is nearly double its 2012 low point. Weekly outside events like Banjo Night and the monthly jazz and bluegrass nights bring the crowds. Annual events like the Lenten Fish Fry and the very popular Johnny Cash Night, which always falls on the late crooner’s birthday and typically features several Cash cover bands, have raised enough awareness about what Elks actually do that membership has soared. And the scope of its work, all volunteer, is astounding, from supplementing federal food stamp deficiencies for the local poor, to summer day camps for atrisk kids, to youth drugawareness programs, to veterans programs, to visiting nurses, to a holiday charity drive. There was even a luggage charity drive to collect gently used luggage, totes and book bags for foster children transitioning between
current roles. “We know that our employees, customers and community will be in good hands with Mister Car Wash,” Evan Porges said. “We’ve seen their track record of integrating businesses and knew they would be the people to continue the Prime Shine legacy.”
homes and women transitioning in or out of women’s shelters. This provided a bit more dignity than the black trash bag Health and Human Services provides. They also raised money for the victims of Hurricane Maria in Puerto Rico and for the Tree of Life Synagogue Victims & Families Fund in the aftermath of the mass shooting this fall. All of these only touch the tip of the iceberg of the philanthropic work this one lodge does, with many of the new members having first walked through the lodge doors on Banjo Night, looking for a place that could become a second home of sorts, a place to connect with people they were somehow missing in their lives. Too often people think that to make significant change in the world they have to get involved in global issues or lobbying the central government. What they miss is that most things that improve the world begin
in a small community civic organization like this Elks — even something like helping homeless veterans get a free haircut, interview clothing and housing until they get on their feet. That vet or the kid who gets a scholarship through the Elks will in turn keep alive the notion of service and go on to improve the world in his or her own way. Ray Link, the young “exalted ruler” of this lodge, says there are a dozen or so new members about to be sworn in to this Elks beginning in 2019. Even the mayor of Pittsburgh, Bill Peduto, has been a member in good standing for a couple of years. Joining has been something Americans have been doing for centuries. In the past decade, we’ve sadly replaced our participation in churches and civic organizations with a heavy participation in politics and social media, neither of which really does much for us or our communities.
Fortune 500 company
husband and wife
209 BUSINESS JOURNAL
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BUILDING YOUR BUSINESS 19%
“Family-owned” means:
28.8 Any million small business in which two or more family members operate the company, businesses inof ownership or control and the majority lies within a family. the US - 19% are family-owned. Are family businesses successful?
78%
60%
Family-owned businesses employ
60% of the US workforce and create 78% of all new jobs.
Challenges family-owned businesses face 64%
AT WORK
GDP
When you’ve bought a franchise but the numbers don’t add up “A partner and I invested in a franchise last year. The franchise offers a variety of healthy foods, but focuses primarily on soups and salads. “We were offered a number of territories, but chose a large downtown area in an upscale Midwestern city. “The problem has been finding the right location for the first restaurant. We have found a potential site, but the rent is extremely high and the landlord won’t budge. We have ‘run the numbers’ and the bottom line is that we will have to sell about 250 soups and salads every day just to cover the rent. My partner and I are not comfortable we will be able to achieve that sales volume anytime soon, especially in the current down economy. “The franchise really likes this location and is pushing us to start building our territory since we’ve had it for a year now. But we do not want to ‘throw good money after bad’ building a location that won’t ever be profitable. How can we handle this situation in a ‘win win’ way?” Generally, the time to figure out whether a franchise is going to work is BEFORE you buy the franchise, not after. One of the key issues you want to raise with any franchise before you buy is the average breakeven: How long does it take the typical franchisee to generate enough operating revenue to cover its monthly operating expenses and start paying back the initial investment? If the franchise won’t disclose this information, you should call lots of its franchisees and ask them point-blank how long it took them to break even. Another key issue is geographic distribution. The perfect franchise is one that has franchisees in all 50 states and in every con-
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CLIFF ENNICO CREATORS SYNDICATE
ceivable demographic area: high-income, low-income, urban (high population density), rural (low population density) and so forth. A franchise that is very successful in rural America may experience difficulty when it opens outlets in large cities where real estate, labor and, well, everything else is a whole lot more expensive. Item 20 of the Franchise Disclosure Statement will provide this information. Since you have already bought the franchise and selected your territory, it is too late to do this type of homework. Here are some ways you might — might — be able to move forward with this franchise. Show Them the Numbers. It won’t be enough to call the franchise and say that you and your partner are getting cold feet. The franchise won’t like that and may be tempted to terminate your franchise agreement (the default section of the agreement usually allows that). You will need to make a detailed presentation — in spreadsheet format — showing clearly that the numbers at this location aren’t likely to work. Show exactly how many daily, weekly and monthly sales you would need to generate at the franchise’s current price level to meet your monthly expenses at this location, and ask bluntly if any of the other franchisees have succeeded in achieving that sales level within a reasonable time after opening. Spell out Your Breakeven Expectations. Now it’s time for some hardball. You will need to state clearly: “We
do not want to build a location unless there’s a betterthan-average chance we will break even within X to Y months. And if it takes much longer than that, we will be looking for the exits and cut our losses.” Ask to see the average breakeven figures for other franchisees, especially those in high-rent areas similar to your territory. Renegotiate Royalties. If the franchise is really eager for you to build a location at this site, it may be willing to temporarily waive or reduce the royalty rates and other regular monthly fees. Renegotiate Prices. Many franchises base their product and service prices on nationwide average price data, disregarding the fact that it costs more to operate in certain areas of the country than others. If you are the first franchisee to operate in a high-rent urban area, you may be able to persuade the franchise to raise the price levels just in your territory. Keep in mind, though, that you may be raising your prices so high that you discourage business. Nobody I know, even in New York City, will pay $50 or more for a basic soup-and-salad combination (unless it’s being offered by a celebrity chef at a four-star restaurant). Renegotiate the Territory. If some of the other franchisees are breaking even quickly in territories that don’t look like yours, you may be able to exchange your territory for another one where you will be likelier to succeed. Exit the Franchise. If push comes to shove, you may have to throw in the towel and exit the franchise empty-handed. It would be painful, but at least you will know you have cut your losses. Better luck with the next franchise.
of family businesses survive the transition from first to second generation ownership.
30%
12%
survive the transition generation.
Family businesses can range from
1.2 million family-owned small businesses are run by a husband and wife
Successes and Obstacles
Mom and Pop Shop
Mom and Pop Shop
64%
of Gross Domestic Product (GDP)
from second to third Family-owned businesses range in size
The Family Business 13%
Family businesses generate
2 people to thousands in a
Fortune 500 of family business company owners expecting to retire in five years DO 19% NOT have a successor.
47%
of family businesses remain in the family over 60 years.
28.8 million small businesses in the US - 19% are family-owned.
How do family businesses survive? Challenges family-owned
“Family-owned” means:
businesses face
Good governance - 94% ofsurvive the transition of family businesses
Any business in which two or more family members operate the company, and the majority of ownership or control lies within a family.
12% 30% family-owned firms are controlled survive the transition from first to second generation ownership.
Mom and Pop Shop
Are family businesses successful?
60%
from second to third generation.
by supervisory or advisory boards.
13%
of family businesses remain in the family over 60 years.
47%
of family business owners expecting to retire in five years DO NOT have a successor.
Focus on the next generation -
78%
40% of companies included HowOver do family businesses survive?
Family-owned businesses employ
younger family members on boards Good governance - 94% of and committees to nurture business family-owned firms are controlled by supervisory or advisory boards. and management skills.
60% of the US workforce and create 78% of all new jobs.
Focus on the next generation -
Over 40% of companies included younger family members on boards
64%
and committees to nurture business Customer and employee-oriented and management skills.
Family businesses generate 64%
GDP
74% of family-ownedCustomer firms report and employee-oriented 74% of family-owned firms report stronger values and culture.
of Gross Domestic Product (GDP)
stronger values and culture.
Family-owned businesses range in size
Work with a SCORE mentor to help make your family business a success.
Work with a SCORE mentor to help make your family business a success. Family businesses can range from
1.2 million
family-owned small businesses are run by a husband and wife
2 people to
thousands in a Fortune 500 company
www.score.org
Sources: h tt ps ://www. i n c.co m/e n cycl o pe di a /fa mi l y- own e d- bu s i n e ss e s . h t ml h tt p://s ma l l bu s i n e ss .ch ro n .co m/fa mi l yown e d- co rpo rat i o n - 81 4 66. h tml
19%
h tt ps ://www. st at i sti cbra i n .co m/fa mi l y- own e d- bu s i n e ss - st at i st i cs / h tt ps ://h br.o rg/2015/0 4/l e a de rs h i p- l e ss o n s - fro m-gre at- fa mi l y- bu s i n e ss e s h tt ps ://www. s ba .gov/s i te s /de fa u l t /fi l e s /a dvo ca cy/S B- FAQ- 2016_ W EB. pdf h tt p://www.fa mi l ybu s i n e ss ce n te r.co m/re s o u rce s /fa mi l y- bu s i n e ss - fa ct s /
28.8 million small businesses in the US - 19% are family-owned.
h tt ps ://www.fo rbe s .co m/s i te s /a i l e ro n /201 3/07/31 /t h e - fa ct s - o f- fami l y- bu s i n e ss / h tt ps ://h br.o rg/2014/0 4/ge n e rat i o n - to - ge n e rat i o n - h ow-to - s ave - t h e - fa mi l y- bu s i n e ss
www.score.org Sources: Challenges family-owned h ttps://www.in c .co m /en cyc l o pedi a/fam i l y- own ed- bu s i n ess es . h t m l businesses face h ttp://smallbus i n ess .ch ro n .co m /fami l yown ed- co rpo rat i o n - 8 14 66. h tm l h ttps://www.st at i sti c brai n .co m /fam i l y- own ed- bu s i n ess - st at i st i cs /
30%
of family businesses survive the transition survive the transition h ttps://h br.org/2015/0 4/from l eader s h i p- l ess o n s - f ro m -great- fami l y- bu s i n ess es second to third from first to second generation. h ttps://www.sba.gov/s i tes /defau l t /fi l es /advo c acy/S B- FAQ- 2016_ WEB. pdf generation ownership.
12%
h ttp://www.fam i l ybu s i n ess cen ter.co m /res o u rces /fam i l y- bu s i n ess - fact s / Mom and Pop Shop
13%
h ttps://www.fo r bes .co mof /sfamily i tesbusiness /ai l ero n /2013/07/3 1/t h e- fac t s - o f - fam i l y- bu s i n ess / of family businesses owners expecting to ttps://h br.org/2014/0 4/gen erat i o n - to - gen erat i o n - h ow-to - s ave- t h e- fami l y- bu s i n ess remain in theh family retire in five years DO over 60 years. NOT have a successor.
47%
Dos and Don’ts of hiring relatives for your business
How do family businesses survive?
SCORE ASSOCIATION
Good governance - 94% of family-owned firms are controlled by supervisory or advisory boards.
When you’re starting a new business, the Focus on the next generation 40% mere idea of hiring your first employees can seem daunting. You have to find job candidates, interview them and then decide Customer and employee-oriented which of these people you trust enough to 74% hire—all at a time when you have so much work to do that you can barely think. No wonder that instead of going through this Work with a SCORE mentor to help effort, many startup entrepreneurs choose make your family business a success. employees closer to home: their own family members. Over of companies included younger family members on boards and committees to nurture business and management skills.
of family-owned firms report stronger values and culture.
There are several advantages to hiring www.score.org members of your family to work in your startup: Sources:
https://www.inc.com/encyclopedia/family-owned-businesses.html
http://smallbusiness.chron.com/familyowned-corporation-81466.html https://www.statisticbrain.com/family-owned-business-statistics/
■ Known quality: You already know the person and have a good idea of their work ethic, past work history and personality. You won’t have to do a background check, or lie awake at night worrying that your job candidate has a criminal record. https://hbr.org/2015/04/leadership-lessons-from-great-family-businesses https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf http://www.familybusinesscenter.com/resources/family-business-facts/
https://www.forbes.com/sites/aileron/2013/07/31/the-facts-of-family-business/
https://hbr.org/2014/04/generation-to-generation-how-to-save-the-family-business
■ Tax advantages: If you hire your child under age 18 to work in a sole proprietorship or a partnership in which both partners are parents of the child, the child’s wages are not subject to Social Security and Medicare taxes. If you hire your spouse or your parent to work in your business, that person’s wages are not subject to FUTA tax. If you hire your child under age 18, you may even be able to shift some of your income to their lower tax bracket and realize tax savings this way. (Consult your accountant and follow IRS guidelines regarding tax treatment of family members.) ■ Building a dynasty: Hiring family members can be the beginning of a lasting family business. Family members will often take more pride in their jobs than outsiders, and can be highly motivated, especially if they have hopes of leading the business one day. ■ Cost savings: In addition to the tax savings they can provide you, family members may be willing to work for lower pay than other employees—especially when your business is just starting out. However, it’s important to honestly assess the risks of hiring family members. ■ Entitlement: Even a family member with
a stellar employment record may take advantage of your relationship when he or she comes to work for you. ■ Discipline issues: How easy will it be to discipline the family member you are considering hiring? What will you do if he or she doesn’t live up to your expectations? Will you feel comfortable doing employee reviews of the person? ■ Perception of nepotism: If you start out hiring family members, as your business grows you may find it difficult to hire nonfamily members. Whether fairly or not, outsiders may believe that they won’t get fair treatment at your company and that family members will always come first. ■ Authority problems: Family members who treat you with familiarity can undermine your authority with nonfamily employees, causing discipline issues throughout the company. ■ Gossip: Family members who work in the business may gossip about your personal life with nonfamily employees or may tell your family members things about your business that you’d rather keep private. ■ Unrealistic expectations: If you hire your brother, will your aunt expect the same treatment for your lazy, unskilled cousin? Consider the message that hiring one family member could send to others in your family. If you hire family members, take these steps to help the arrangement run smoothly: ■ Write an employee handbook, and have your family member sign an employment agreement just as you would with any employee. Make sure your relative understands that the same rules apply to all employees. ■ Hire family members on a trial basis. For example, set a 60- to 90-day probationary period during which the family member may be let go if your expectations aren’t met. (This is a good idea when hiring any employee.) ■ Hire family members only if their skills and experience fit the job. Never hire a family member as a favor. Doing so is the surest way to regret your decision.
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209 MAGAZINE AND THE FRUIT YARD AMPHITHEATER PRESENT:
OF THE
Save the Date!
Sunday, April 28th, 2019 1:00-5:00pm
Spend an afternoon sampling food, wine and craft beers from the 209’s finest restaurants, wineries and breweries in the beautiful new outdoor amphitheater venue at the Fruit Yard. Live music will be performed by well-known local artist Alex Lucero.
Raffle prizes and premier silent auction all benefit United Cerebral Palsy. For Vendor and Sponsorship Opportunities call Taste of the 209 Coordinator Jennifer Webber at (209) 249-3550
209 BUSINESS JOURNAL
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ACCOLADES
PROMOTIONS, APPOINTMENTS, HONORS, ETC. Honor for Turlock Olive Garden general manager
Ron Ghaffari, General Manager of the Olive Garden in Turlock just achieved Diamond Club status, one of the top honors at parent company Darden Restaurants. Ghaffari was recognized this year for his commitment to delivering guest experiences at the highest level, while making a difference in the lives of guests and team members, Ron Ghaffari as well as in his community. This is the third time he has received this recognition. “Ron welcomes every guest and team member that comes through his restaurant doors like family,” said Dan Kiernan, President of Olive Garden. “His passion for creating a vibrant, engaging team member culture make him an incredible asset to both the Turlock community and our Olive Garden family.” Ghaffari attributes his professional success caring managers with a great work ethic and genuine love of the job. Ghaffari joins an elite group of 44 General Managers selected from more than 850 Olive Garden restaurants in the country this year, making this a truly exclusive honor.
Community College District, while helping to ensure equitable access and success to all students. Departing trustees Dennis Jordan, Cindy Lashbrook and Leonel Villarreal gave a few parting words before giving way to their replacements. Lashbrook and Jordan were the board’s longest tenured members, having served the last eight years. “I’m proud to have this opportunity to serve this institution that has played such a pivotal role in our community,” Pedrozo said. “I’m ready to get to work alongside my fellow board members and continue to build upon the excitement and momentum that President (Chris) Vitelli has brought to the campus.”
New judge for Merced County
Steven K Slocum, 41, of Merced, was appointed to a judgeship in the Merced County Superior Court and was formally sworn in on Dec. 7. Judge Slocum served as a commissioner at the Merced County Superior Court since 2018. He served in several positions at the Merced County District Attorney’s Office from 2005 to 2018, including as supervising deputy district attorney. Slocum earned a Juris Doctor degree from the Pepperdine University School of Law and a Bachelor of Arts degree from the University of California, Los Angeles.
New Merced College Board of Trustees members welcomed
Newly elected board members John Pedrozo, Sue Chappell and Mario Mendoza were introduced to the Merced College community at the monthly Board of Trustees meeting on Dec. 12. The board consists of seven elected officials, each representing a region in Merced County. Its purpose is to support the mission, vision and core values of the Merced
Cruz as a police dispatcher. He joined Stanislaus Regional 9-1-1 Joint Powers Authority as the Executive Director in mid-2016. At this agency, he was responsible for all aspects Scotty Douglass of the organization that provides emergency dispatch and public safety technology services to all agencies within Stanislaus County. Recently, he was given an opportunity at the Stanislaus Animal Caluha Barnes Services Agency as Interim Executive Director, a role he has used to begin a strategic visioning process to be used in the development of a robust business plan. While overseeing both agencies, Douglass has been responsible for over 90 employees and a combined budget of over $13 million. Douglass has a bachelor’s degree in management and a master’s degree in leadership. Barnes has more than 25 years of experience in the public sector and has worked at every level of government – federal,
state, county, city and special district. A significant part of that time has been in administrative management, budget development and oversight, organizational change management, and process improvement. Barnes served at the City of Santa Rosa as Director of Community Engagement, where she was charged with implementing recommendations of a Mayor’s Task Force on Open Government. The Department also staffs a 14-member Charter-directed Community Advisory Board for which she launched the first strategic planning process since the Board’s inception in 2002. In July of 2018, Barnes assumed the additional responsibility for the Recreation and Parks Department as the Interim Director. Barnes holds a master’s degree in public administration. The two will act as liaisons to the City Council for many of the high-profile projects from city departments. Douglass will also act as a critical resource on the city’s performance management, while Barnes will provide oversight on the Strategic Plan and homeless program.
Convenience store group supports food bank
The Central Valley chapter of the American Petroleum & Convenience Stores Association led by President Sukhi Sandu donated $500 to the food bank operation SEE ACCOLADES, PAGE 12
New faces for City of Modesto
Scotty Douglass and Caluha Barnes, have joined the City of Modesto’s leadership team as Deputy City Managers. “I’m excited for Scotty and Caluha joining the city of Modesto family,” said Joe Lopez, Modesto City Manager. “The two new deputy city managers will focus on collaboration in efficiently meeting the needs of our customers, and will be instrumental in leading the charge toward a more responsible, innovative organization.” Douglass began his career in public service by working for the City of Santa
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JANUARY 2019
STOCKTON TO L.A. FLIGHTS United Way Express starting two daily flights in August BY DENNIS WYATT 209 Business Journal
United Airlines is launching two daily United Express flights through its partnership with SkyWest to and from Stockton Metro Airport beginning Aug. 22. The service was announced Dec. 19 at a news conference in the lobby of the Stockton Metro Airport. The last time Stockton had direct service to a major hub was in 2003 when America West provided service to Phoenix. Airport Director Russell Stark noted the service will eliminate the need for business and leisure travelers to battle traffic and congestion to fly out of San Francisco International to take advantage of the widest number of possible fight connections. The new service is expected to help reduce traffic congestion over the Altamont Pass corridor and Bay Area freeways in order for Northern San Joaquin Valley air travelers to catch flights in San Fran-
cisco, Oakland, or San Jose. It also will help take pressure off the Interstate 5 corridor used to access Sacramento International Airport. “When we think of a commute, we think of the Altamont Pass,” noted San Joaquin County Supervisor Chuck Winn of Ripon. “Going north-south in California is a commute for a lot of firms now locating in our area.” Winn noted even agricultural endeavors will benefit from the United Express. As an example, many winery owners in his sprawling district that includes 80 wineries in the Lodi area often log 150,000 miles a year in business travel. The United service is also expected to further strengthen the appeal of firms locating in the region. Ironically it was an attempt by local officials to rebrand Stockton Metro as Stockton-San Francisco Airport in a bid to market Stockton as a fifth airport option in the Northern
California Megaregion that is closely identified with San Francisco that generated help in securing United Way Express service, noted Tom Patti who represents Manteca north of Yosemite Avenue and Lathrop on the Board of Supervisors. While San Francisco International Airport moved to kill the name change that was the target of jokes in Bay Area media to avoid confusing travelers, key SF Airport personnel stepped up to assist San Joaquin County in securing regular service. They did do in a bid to reduce congestion in terms of flights at SF International. “Several high-tech firms now call San Joaquin Valley home,” Patti said. “These employers and their employees will benefit greatly from air service to one of United Airlines’ hubs, giving them global access right out of Stockton.” Currently on an annual basis, nearly 5.5 million passengers within a 25mile radius of Stockton
Metro travel over an hour when there is no congestion to reach airports in the Bay Area or Sacramento. Manteca-Lathrop arguably is almost as well situated as Stockton is to take advantage of the county operated airport. It is an eight mile drive from downtown Manteca to Stockton Metro via Airport Way and a five mile drive from downtown Stockton via Airport Way. Parking is also easier and going through TSA security is significantly faster. TSA will be adding another screening line when United service starts. You can now book round trip flights after Aug. 20 on the United site at united. com, using the United mobile app, or calling United Reservations at 800.864.8331. The cost of a roundtrip flight is $185. The seven-day-a-week flights will depart Stockton at 7:41 a.m. and arrive at LAX at 9:10 a.m. as well as at 3 p.m. and arrive at LAX at 4:20 p.m. Flights from Los Angeles
to Stockton depart at 1 p.m. and arrive at 2:22 p.m. as well as departing at 5:10 p.m. and arriving at 6:32 p.m. SkyWest will be using the 50-seat Bombardier CRJ200 feature a center aisle with two seats on each side.
ACCOLADES
FROM PAGE 11
that serves as the distribution center to supply nearly 100 food closets throughout the 209 region. The chapter has more than 200 members from Lodi to Merced. The donation comes on the heels of the successful Turkeys R Us drive that as-
Allegiant Airlines that specializes in tourist travel already has flights out of Stockton to Phoenix, Las Vegas and San Diego. The airport also has a number of Amazon Air Prime cargo flights each day.
sured 750 struggling families in Manteca, Ripon, and Lathrop had traditional turkey or ham meals for Thanksgiving and Christmas. That is in addition to 200 turkeys provided to the community Thanksgiving dinner effort by the Manteca Rotary and Sunrise Kiwanis that provided more than 2,300 meals for people in the three communities.
THE COMMUNITY THAT GROWS TOGETHER, THRIVES TOGETHER. At Kaiser Permanente, we don’t see health as an industry. We see it as a cause. That’s why we’re excited to be a part of the Central Valley. Our doors, hearts and minds are always open to help every last one of you thrive. Learn more at kp.org/centralvalley.