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M a i n F e at u r e
HOME-BASED F r a n c h i s i n G
tO P 4 r e a s O n s tO “OWN YOUR OWN”
TEEN ROAD TO SAFETY W h e r e s a F e t Y B e G i n s
LATEST NEWS FINANCIAL ADVICE FROM THE BANKS TOP LAWYERS’ ADVICE
T H E M A g A z I N E F O R F R A N C H I S E E S
Franchising USAVOL 02, ISSUE 12, OCT 2014
$5.95 www.franchisingusamagazine.com
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Franchising USA
FRANCHISING USA VOLUME 2, ISSUE 12, OCT 2014 president: Colin Bradbury. [email protected]
publisher: Vikki Bradbury. [email protected]
editorial department: [email protected]
editorial team: Rob Swystun Stephen Kelly Gina Gill
advertising sales: [email protected]
production: Samantha Klimecki. [email protected]
design: Jejak Graphics. [email protected]
cover image: Teen Road To SafeTy andrew Wunderlich, President
cgb publishing 676 Wain Rd. Sidney, BC V8L 5M5 Canada sales: 778 426 2446 editorial: 778 426 2446 www.franchisingusamagazine.com
Proud member of the Ifa:
International franchise association 1501 K Street, n.W., Suite 350 Washington, d.C. 20005 Phone: (202) 628-8000 fax: (202) 628-0812 www.franchise.org
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Working from home. The worker’s Holy Grail! No rush hour, no traffic snarls, smaller start up and operating costs. Perfect!In this, our October issue, we explore just some of the options available to you when considering starting up your own Home-Based Franchise.
Our regular contributor, George Knauff writes a fabulous expert advice article on ‘Empire Building from Your Basement’ and points out the advantages – and the pitfalls - of working from home. He also reminds us that while running a home-based business is a fabulous permanent option, having low start-up costs and flexibility also makes it a good starting point from which to expand.
On the cover this issue is one such business – Teen Road to Safety - a company which Andrew Wunderlich started as a home-based business in 2004 and is now franchising and set to expand. Teen Road to Safety uses current or retired law enforcement officers and professional stunt and race car drivers for their advanced training, it is certainly an excellent option for a home-based business.
And what of other options for Home-Based Franchising? Our regular feature
by Rob Swystun shows us the range of business types that can be run from home including some you may not have considered. He also explores the question of whether working from home is for you.
For those of you already operating a successful franchise - whether home-based or not - we have a fantastic range of helpful advice from our experts, including ‘How to Make the Most of your Franchise Expo Experience’ by Adam Heitzman. Andre Kay shows us how to ‘Increase Sales 3 Ways’ and Hesham ElHamahmy looks at ‘Franchise Marketing Trends in 2014’.
Our ever popular Veterans Supplement has some great stories of Veterans who have successfully made the transition into franchising, working in a variety of industries. These include educating the next generation with Best in Class Education, mixing art and a social night out with Pinot’s Palette and Fresh Coat Painters – an excellent Home-Based Franchise option.
I hope you enjoy this month’s read and may I wish you all success in your future endeavours.
Happy reading and good luck!
Vikki Bradbury
Publisher
F R O M T H E
Publisher
SUPPLIERFORUM
T H E M A g A z I N E F O R F R A N C H I S E E S
Franchising USA
Franchising USA
10 Cover Story Teen Road to Safety
30 Feature Article Home-Based Franchising
52 Top 4 Reasons to “Own Your Own” Tariq Fahrid, Edible Arrangments
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On the Cover
CONTENTS
Profile14 TruBlue Total House Care
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Franchisee in Action18 great American Deals
In Every Issue06 Franchising News Announcements from the Industry
30 Feature Article Home- Based Franchising
37 Veterans Supplement News and Information for Veterans in Franchising
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Expert Advice
12 Franchise Marketing Trends in 2014 Hesham ElHamahmy, Nexus Online Media
16 How to Make the Most of Your Franchise Expo Experience Adam Heitzman, HigherVisibility
22 Increase Sales 3 Ways Andre Kay, SociallyBuzz
28 What’s The Hurry? David Banfield, The Interface Financial group
34 Franchise Support Best Practices Bryce Ebeling, Loyaltygenerator
48 Home Sweet Business. Empire Building from Your Basement! george Knauf, FranChoice
52 Top 4 Reasons to “Own Your Own” Tariq Farid, Edible Arrangements
58 U.S. Franchise Industry grows 3.8% in Four Years Jeff Lefler, Franchisegrade.com
60 Defining Success as a Franchise Owner Andy Roe, SurePayroll
Franchisor in Depth24 OrthoNOW®
54 Meineke Car Care Centers
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THE GREENE TURTLE SIgNS 11-UNIT DEVELOPMENT AgREEMENT FOR NEW JERSEY
Del Taco recently launched its Fresca
Bowls: premium, made-to-order bowls
loaded with fresh, flavorful, high-
quality ingredients. Priced at just $4
each, Fresca Bowls are served on a bed
of fresca lime rice and seasoned black
beans, and are offered in the following
three varieties:
• Southwest Grilled Chicken & Veggie Bowl combines fresh-grilled chicken and a blend of fire-roasted, red and green bell peppers, caramelized onions and flavorful Poblano peppers
• Pollo Asado Grilled Chicken Bowl is made with marinated, fresh-grilled chicken, hand-chopped pico de gallo salsa, onions and cilantro
• Fire Roasted Veggie Bowl features Del Taco’s tangy green chile sauce, freshly-chopped pico de gallo salsa, and a blend of roasted vegetables
DEL TACO INTRODUCES FRESCA BOWLS
operators Balrup Hundal, Surinder Hundal and Parminder Singh, will focus on development in southern New Jersey.
“My partners and I did a lot of research looking for the perfect brand to develop here,” says Raj Rana, “and we are confident we’ve found a winner in The Greene Turtle. More than your average sports bar and grille, The Greene Turtle is a community hangout where people can have great food, choose between numerous craft and commercial brews and enjoy a lively atmosphere. We expect New Jersey will fully embrace the concept.”
Currently, there are 37 locations open in the mid-Atlantic region and on New York’s Long Island. Tom Finn, Vice President of Franchise Business, says the company is seeking experienced multi-unit investors to develop additional markets in northern New Jersey, New York City, New England, Pennsylvania, West Virginia, Virginia, the Carolinas, Georgia and Florida.
www.thegreeneturtle.com/franchise.php
“Del Taco is thrilled to introduce its new line of Fresca Bowls, loaded with a generous portion of fresh-grilled chicken that far outpaces competitors, to deliver what we believe is the freshest bowl experience for the money,” said John Cappasola, chief brand officer, Del Taco LLC.
“We are committed to providing our guests with options that focus on freshness, as well as providing a convenient and elevated dining experience, all while continuing to deliver the value that Del Taco is famous for.”
For more information visit: www.deltaco.com
The Greene Turtle Sports Bar & Grille has finalized an
agreement with a new franchise group to develop 11 units in
New Jersey, marking the first locations of the casual dining
chain to open in the Garden State.
Imperial Restaurant Group LLC, led by former multi-unit QSR restaurant owner Raj Rana and petroleum distribution/retail
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VICTORY LANE QUICK OIL CHANGE ANNOUNCES
SALE AND NEW OWNERS
Victory Lane Quick Oil Change is
proud to announce that the company
has been sold to Justin and Lauren
Cialella, effective July 30, 2014.
The Cialella’s own and operate 11 Victory Lane locations in Michigan. Derrick and Jane Oxender, the founders and former owners, retain ownership of 4 locations after the sale.
The company headquarters has relocated from Ann Arbor, MI to Canton, MI following the sale. The company is currently looking at additional opportunities to expand its franchise operations throughout the U.S.
“We are pleased that as Jane and I looked to the succession of the company, the Cialella’s were willing partners in a transition that will position Victory Lane for growth and continued success for many more years,” says Derrick Oxender, Founder and former CEO.
“The Victory Lane Brand is one of the oldest in the industry and the franchising model is unique in its independence from big oil companies, and its commitment to customer service. We are excited to grow the company for many years to come” says incoming CEO Justin Cialella.
For more information visit: www.victorylane.net
BACH TO ROCK INTRODUCES CUTTINg-EDgE COMMUNICATION TECHNOLOgY FOR STUDENTS, PARENTS AND TEACHERS Bach to Rock, America’s Music School for students of all ages, is taking its
transformative approach to music education to the next level in 2015 with the
introduction of a proprietary digital communication system that empowers students,
parents and teachers.
The interactive tool supports Bach to Rock’s face-to-face music education methods with the ease and efficiency of touch-screen tablet technology. It brings the Bach to Rock curriculum to life in a way a parent can quickly understand, almost instantly showing them what their child has mastered — whether it’s recognizing a quarter note, reading notes on the treble clef or knowing what sharps and flats are in which key signatures. The parent can also see what musical skills and concepts their child has yet to conquer.
“A supplemental digital delivery system helps teachers better understand how their student learns and can help them personalize every lesson to give the student a well-balanced music education,” says Aaron Schmidt, Bach to Rock’s Director of Curriculum and Training. “This new proprietary technology, which will be rolled out at all Bach to Rock schools in 2015, is right in sync with our commitment to reinvent music on a national scale,”
For more information visit: www.bachtorockfranchise.com
Franchising USA
what’s new!
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MOBILE DEVICE REPAIR FRANCHISE OPPORTUNITY
NEW COO FOR MERRY MAIDs
Joe Chaves has been promoted to chief
operating officer of Merry Maids, a
franchise in which 8,000 cleaning
professionals provide approximately
200,000 residential cleaning services in
1,600 locations each month.
Chaves was formerly vice president, of franchise operations for sister company ServiceMaster Clean, a role he held since September 2012. Both companies are based in Memphis, Tenn.
As COO, Chaves will continue to build upon the positive culture of trust and respect for which Merry Maids is known among franchisees and branches. He is committed to maintaining best-in-class operating standards and overseeing Merry Maids’ highly profitable business model
that ensures franchisees and branches realize a significant return on their investment.
A franchising veteran, Chaves came to ServiceMaster Clean after six years as director of operations for Subway. Prior to that, he spent 23 years total with Dunkin Brands in a variety of real estate, operations and development positions and, with his wife Paula, owned two Dunkin Donuts/Baskin Robbins franchises in the Orlando, Fla. area. They have two grown daughters who reside in Maryland.
Merry Maids is the largest home cleaning franchise network in the US. and is a brand of ServiceMaster Global Holdings, Inc., whose other franchise brands include ServiceMaster Clean, ServiceMaster Restore, Furniture Medic and AmeriSpec.
For more information, visit www.MerryMaids.com.
Mobile device repair company iDropped, which currently has
five locations in Pennsylvania, is now looking to significantly
expand through a franchising strategy set to propel iDropped
to hundreds of locations in the next five years.
iDropped provides fast, on-site mobile device repair for the most popular brands of mobile devices with a specialization in Apple products and the Samsung Galaxy series.
Unlike many wireless retailers that require customers to go days without their phones while being repaired, iDropped strives to fix phones in an hour and other devices within 24 hours. Each device goes through a rigorous pre-repair and post-repair checkpoint to ensure complete functionality before it is returned to the customer. iDropped supports each repair with a one-year warranty.
“iDropped is focused on carving a niche as the most trusted brand in the device repair industry,” said Charles Hibble, iDropped CEO and co-founder. “For technology enthusiasts, our franchising program provides the business know-how, branding and experience to turn their passion into a growing, in-demand business for years to come.”
Franchise partners have access to premium part suppliers, distributors and other vendors to ensure customers receive quality repairs at every location.
To learn more visit: www.idropped.com
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sOCCER sHOTs PROVIDINg A gREAT CAREERAt Soccer Shots we take pride in welcoming franchise owners that have worn the military uniform and now enjoy using the passion of soccer, and the education of small children as their career.
The Soccer Shots franchise is an intro
to soccer program that teaches basic soccer skills and character development to children ages two-eight. We offer a quality, high-energy soccer program with principled instruction wrapped in fun.
We have franchise opportunities in cities throughout the United States and Canada.
With a 15 percent franchise discount to veterans, the Soccer Shots franchise provides a great career after military service.
Please contact [email protected] to learn more or find franchise information at www.soccershotsfranchising.com.
According to the Canadian Medical
Association, Canadian seniors are
becoming increasingly worried
about the availability and quality of
healthcare services.
To fill this demand, the successful U.S.-based BrightStar Care, with over 260 franchises that provide private duty medical and non-medical in-home care, plans to expand into Canada. International franchise development veteran, Anthony Padulo, who has previously led international efforts for franchises including Dunkin’ Brands, BP Oil and Aamco, is spearheading the expansion.
As Executive Vice President, International, for BrightStar Care, Padulo is focused on securing deals on a national or regional scope, either with Area Developers in
Canada to own and operate multiple locations at a time, or Master Franchisees, who can sub-franchise after opening two to five of their own.
BrightStar Care has the capability to open more than 100 units in Canada throughout the Atlantic Provinces, British Colombia, Ontario and Quebec thus far. The highest potential markets in Canada include Toronto, Vancouver, Calgary, Edmonton, Montreal and Ottawa. For the second year in a row, the company was presented with the prestigious Enterprise Champion for Quality Award by The Joint Commission for its proven commitment to the highest level of clinical quality and safety.
For more information visit: http://franchise.brightstarcare.com/international/
BRIGHTsTAR CARE ExPANSION
Teen road to Safet y
Franchising USA
TEEN ROAD TO SAFETY
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one key to having a successful business is to fulfill a need and that’s just what Teen road to Safety’s president Andrew Wunderlich has done. Due to cuts in the education system, schools can no longer afford to offer driver training like they used to. It’s all being done through private companies now. But, those companies aren’t doing a particularly good job, according to Wunderlich, and he aims to raise the bar on driver training with Teen Road to Safety.
A retired police officer with the Los Angeles Police Department, Wunderlich got a first-hand look at how devastating poorly trained drivers can be.
“I found that cars were killing people more than guns were and that the accident rates
among teenagers were really high and I decided that something had to be done in regards to that,” the company president said during a recent interview from his headquarters in Orange County, CA.
Despite the company’s name and focus on teenagers, it does also teach adults and seniors to drive, as well as provide corporate training to companies who want their employees to get additional driving training. But, it doesn’t just teach these people to drive enough to be competent; it uses the same training methods that police officers receive for their driver training.
After researching driving schools to see how they operated, Wunderlich felt there was a lack of training on these schools’ parts and he felt there was an obvious void to fill with truly comprehensive driver training.
“I wanted to implement something that was very similar to police officer training,” he explained.
And so, Teen Road to Safety goes above and beyond state requirements for driver training.
It provides six-, 10- or 20-hour programs that start with classroom or online driver safety education, then in-car training on public streets and wraps up with a one-day closed course training session that addresses car control.
It’s not just the training that’s provided that makes the driving academy comprehensive; it’s also the type of people who Wunderlich hires that make the difference.
In order to work for Teen Road to Safety as a driving instructor, people must have no less than 10 years of experience in a law enforcement service. Many of the people he currently has on staff, Wunderlich said, are currently serving on or recently retired from the California Highway Patrol or local police departments.
This means that teens and adults alike get
WHERE SAFETY BEgINS
a lot of good experience and instruction in a short time based on the instructors and methods used.
big backingWunderlich’s plan to teach California’s next generation to drive safely has attracted some big name backing. The company currently has a sponsorship deal with Ford, meaning all Teen Road to Safety franchises are located inside Ford dealerships. Ford provides the company with office and training space and usage of Ford vehicles, including brand new Ford Mustangs, for people to learn in.
The company also has a deal with indoor kart racing company, K–1 Speed to do cross promotion marketing support.
ready to expandOpen since 2004, the company now has five corporate locations in Orange County, CA and one franchise open in Newport Beach, CA in the Theodore Robins Ford dealership, Teen Road to Safety is now set to expand across northern and southern California and then into other states, with Texas, Florida, Arizona and Nevada leading the way.
“My business plan was to mentor the first franchisee,” Wunderlich said.
The company has been franchising since 2011 and his early franchisee is a former employee who is also a retired police lieutenant who saw the growth of the company and wanted to own a piece of it. The franchisee now wants to purchase another franchise, no surprise considering that the business growth has doubled every year.
Wunderlich spent two years mentoring his first franchisee and now has a system in place to bring in other franchisees to help grow the brand.
He described the type of franchise prospects he is looking for as go-getters that like to work hard and are passionate about what they do. It also helps if they have a business and marketing background.
Wunderlich also wants to have a personal
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hand in growing the business. He said he would mentor new franchisees himself for several months to help them get settled in the business. Together, they would decide what location the franchisee is interested in and he would provide them with the contacts necessary to get set up in a Ford dealership and they would be responsible for the cities near their dealership location. Potential franchisees can also expect a team of trainers from Teen Road to Safety to assist them, as well, he said.
Currently, he noted, he has some franchise opportunities set up that are essentially turnkey franchises at this point, just waiting for the right person to come along and jump in and start running them.
In the beginningIt wasn’t always sponsorships and expansion for the company, though. Wunderlich started Teen Road to Safety out of his garage in 2004 and built it from the ground up into the business growth juggernaut that it is today.
Part of the reason for the phenomenal growth can be attributed to the fact that the company is so unique in what it offers that it essentially has no competition. Wunderlich said there are no driving
academies that offer anything even close to the level of training that he is offering due to the type of instructors he uses and the type of training they offer. No other driving academy is using current or retired law enforcement officers and professional stunt and race car drivers for the advanced training.
Wunderlich estimated that the company has about 700 students training in all its current locations in any given month.
From those humble beginnings in his own garage, Wunderlich has seen the reputation of his business and himself take off. He recently appeared on The Doctors TV show; he regularly appears in magazines and speaks at schools about teen driving safety. He was hired by Mercedes Benz to instruct that company’s employees at their in-house driving academy and Teen Road to Safety regularly gets recommended by courts and attorneys to assist people to improve their driving.
Wunderlich didn’t just identify a need and fill it; he’s created a demand and is filling that. Now all he needs are the right people with a strong desire to own a thriving business and do something great.
For more information visit: www.TeenRoadToSafety.com
“Teen road to Safety goes above and beyond state requirements for driver training.”
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Hesham ElHamahmy, CEO, Nexus Online Media
These days, there is so much competition for the consumer’s attention and so many choices of online marketing solutions to reach them that it is easy to understand why today’s franchisee is bewildered about the best way to reach their customer. For many franchises, the 2014 trends in franchise marketing are all pointing towards mobile advertising, semantic search, organic online marketing, and integrated marketing which suggest that
while marketing your franchise is not getting any easier, the trends present exciting new opportunities to reach your actual customer!
Here is more in-depth look at these franchise marketing trends:
Mobile MarketingThe seismic shift in consumer reliance on mobile search places a greater emphasis on mobile marketing because of the significant shift of consumer eyeballs away from traditional media like television and PC’s to mobile devices when they need to make a purchase. Due to the increasing access of mobile platforms mobile advertising is up 138 percent from last year according to a study by IAB.
This number represents the importance of mobile advertising in the future, and if your business’s internet presence proves
non-mobile friendly all investments in this sector will render useless. To increase profitability shorten content length for mobile devices, lower image resolution for instant download/ buffering times, and make it geo-location aware.
Semantic SearchCompounding the mobile marketing trend is a move to semantic search by giants like Google who are determining search result rankings for your business based on criteria that is much closer to what customers are typing into their search requests. Major search engines like Google have long abandoned the ‘one-word-search-system,’ and since upgraded to semantic searches which produce more relevant results based on multiple word phrases opposed to one key word.
This method provides much ease to
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“The seismic shift in consumer reliance on mobile search places a greater emphasis on
mobile marketing.”
the consumer but tremendous amounts of stress and frustration to the average online marketer. While once successful marketing required identifying key words; it now requires identifying key phrases consisting of three-five words that your potential customers are most likely to search for, and when there are 120 potential arrangements of just one five word phrase perfecting your search engine optimization can get overwhelming.
Companies such as Nexus Online Media have been developing technology to address this variable challenge. According to Nexus Online Media CTO, Mike Kogan, “the process begins by probing the internet on a periodic basis to capture the key phrases on a specific topic that are subsequently integrated into the website and social media content. This produces digital content that is both semantic friendly and semantic relevant to keep up with the changing user trends.”
organic online MarketingGoing away are the days of simply buying AdWords that simply achieve what good, native content, can achieve on your website and social media. Why? Today, $31B or 85 percent of online advertising is spent on Pay per Click (PPC) advertising. However, only 13 percent of paid Ads are actually selected by the consumer.
The result: Very poor ROI’s that are driving the inevitable trend by franchises to revisit their AdWords purchases. More and more companies are shifting the marketing dollars away from PPC to organically search optimized native Ad content that is catchy and relevant which will reach the 87 percent of consumers selecting non-PPC advertisements.
Integrated Marketing ProvidersFinally, with such an overwhelming choice of mediums like Facebook, Twitter, Pinterest, etc. to reach consumers, many marketing agencies are beginning to integrate website, social media, email marketing, etc., in order to offer the franchiser and franchisees one-stop shopping.
These companies provide services that bundle the company website, social media, SEO, PR postings, and email marketing services together for business so there is only one program to deal with. Proceed cautiously though because many marketing providers claim to do it all. However, under scrutiny, the services are often on separate platforms that can’t be optimized for maximum promotion at the lowest cost had they been truly integrated onto one platform. Having an integrated marketing company keep up with these trends ensures that no dollar gets spent on outdated promotion methods, which ensures customers will always find your business.
Why are these trends important to the franchise industry?
1. The majority of franchises rely on local advertising to reach their customers. The mobile device is location aware to within 50 feet of its actual location. Therefore when a potential customer is searching on their phone, only those businesses relevant to the search AND mobile friendly are presented to the customer.
2. Google’s move to semantic search means every business needs to revisit their online marketing content to ensure it is semantic friendly; otherwise,
Google will gradually move your business down in the search results.
3. Your Pay per Click (PPC) advertising budget is reaching only 13 percent of online consumers. Native Ad content that is organically search optimized is more cost effective and more powerful at reaching the other 87 percent of online shoppers.
4. Franchises can’t just keep adding to their marketing budget every time a new advertising medium is launched. Your in-house team or outside provider must begin to integrate all the marketing technologies in order to manage the growing complexity and cost of managing them all.
Hesham ElHamahmy is CEO of Nexus
Online Media. Hesham has over 20
years of experience managing and
growing businesses into new markets.
His vast wealth of experience in
technology and business development
has enabled Nexus Online Media and
its clients to gain a powerful advisor
and mentor when determining the best
growth strategy. Hesham holds a BSEE
from the University of Toronto and MBA
from Columbia University.
For more information:
Website: www.nexusbeyond.com
FRANCHiSE MARkETiNg TRENDS iN 2014
Hesham ElHamahmy
Franchising USA
Trublue Tota l House care
Franchising USA
A BlESSiNg iN DiSgUiSEAdam Wallace has always been familiar with the phrase “blessing in disguise,” but he only recently discovered its true meaning. Wallace, owner of TruBlue Farmington Valley in Farmington, CT, had been with his previous employer for 20 years and was a general manager in a manufacturing
TRUBLUE
“I never wanted to be in a position again where someone could control my destiny.”
plant overseeing 75 employees and three different product lines in a 42,000 square foot plant.
But, after having a few disagreements with the owner, Wallace found himself in the unfamiliar position of being unemployed.
He took time off to think about his next step and one thing was immediately apparent: he wanted to be his own boss.
“I never wanted to be in a position again where someone could control my destiny,” Wallace stated during a recent interview from his TruBlue office in Farmington.
Armed with this goal, Wallace hit the internet, researching businesses he could buy. What he found was a lot of flower shops, car washes and package stores for
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sale, so he avoided those. An opportunity for a home care business piqued his interest because he has a lot of family in the medical field, but that particular business didn’t get back to him.
This prompted Wallace to search for other home care franchising opportunities, which led him to Home Helpers, a company owned by the Strategic Franchising family of brands. And that’s when Wallace first saw the TruBlue logo and knew he had found his calling. TruBlue - which offers maid, landscaping and handyman services - fit more in line with Wallace’s work experience.
He called TruBlue, flew out to the company headquarters in Cincinnati, OH shortly after that to meet with them, and then bought his franchise in June 2013.
Being the first TruBlue franchise in Connecticut, Wallace had his pick of the territories he wanted. Together with the franchisor, he performed market research about demographics in the state and they mapped out a territory for him with about
200,000 people in it. After a training stint back in Cincinnati, Wallace opened for business on October 1, 2013.
And then …
“It’s been crazy,” Wallace summed up his first year in business. “It’s been a crazy year.”
The lead generating system has been bringing him more leads that he can currently handle. The franchisee has four full-time employees and was planning on hiring a fifth employee that afternoon. He has five vehicles on the road full time and he’s outgrowing the warehouse space that he rents.
This sudden growth spurt, while welcomed for the business, has meant his weekdays have been absolutely hectic.
“The work life balance has been mostly work, but that’s been getting it up and going,” he said. “That’s been dedication to work.”
In the near future he sees things settling down, giving him more time to dedicate to
his family once the business settles into a rhythm.
For anyone interested in joining TruBlue, Wallace recommends being prepared, knowing what you’re in for and being familiar with what your territory will require. For example, he said, he pushes a lot of snow in Connecticut, which would obviously not be the case in Florida, which would have different requirements.
He also said that the future certainly looks bright with TruBlue. While the brand markets itself toward seniors, it’s not only that age group that is requesting the company’s service. Even 30-40 year olds are interested in hiring the company.
“People aren’t handy like they used to be,” Wallace said. “So, there is a big demand for us.”
That demand is a big part of what has turned out to be Wallace’s blessing in disguise.
For more information visit: Website: www.trubluehousecare.com
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Adam Heitzman, Co-Founder and Managing Partner, HigherVisibility
As 2014 winds down, it’s time to start thinking about how you can get creative and what new initiatives you can get involved with in the New year to help your franchise grow.
Setting up a booth at a trade show is one way to help develop your franchise by actually meeting potential candidates face to face. Those visiting a franchise expo are likely there to learn more and are further along in their research than many of those who are still researching online. In other words, you’re getting very targeted traffic and, even better; you get to respond to it as directly as possible.
Tips to leveraging Franchise expos for Franchise DevelopmentIf you have a franchise booth at an expo, you want to make sure that you make a lasting impression. This isn’t always easy because while you might have the best people attending and you might have the best avenue to respond, you also have your competition right there in your peripheral vision.
Below are a few tips and tricks that will help you accomplish your goals and stand out amongst potential franchisees:
How to Make tHe Most of Your
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“If you have a franchise booth at an expo, you want to make sure that you make a lasting
impression.”
Adam Heitzman
1. Pay special attention to who you put in charge of your booth
The person you put in charge of your booth is probably the most important thing to keep in mind. Initially you might not want to send your top salesman to the event, but this is the place for your best. You have to make sure that the person in charge is very knowledgeable and able to help, but I always say that personality is just as important. In fact, it’s almost more important when it comes to a trade show.
You want to lure franchisees in first and give them a good look at your business and then send them to the owner and technical experts in a follow-up meeting. Those who are high-energy are going to show that your business is one someone should want to work for, which is one of the most important things to notice initially before learning more information.
2. Setup a workshop a few hours before the trade show
This is a great option not only to make candidates feel more comfortable, but help give you a feel for what to discuss at the actual expo. It helps you find the people who are interested in your specific business as well as understand the goals of those attending. Remember, trade shows are always different depending on a variety of factors such as location, time of year, etc., so holding a workshop before every single trade show is key.
Also keep in mind that you can discuss more topics than simply owning or buying a franchise. Some people are there to learn more about franchise SEO, (which you can learn more about on our website at www.highervisibility.
com), or how to manage content, which you can learn more about at www.contentmarketinginstitute.com/2013/02/content-marketing-franchise-level. You’ll be surprised at the varying levels and goals people come with.
3. Have materials set to go for people at all different levels of the franchise process
This is probably the most obvious thing to remember, but part of being prepared is having all of the information you possibly can in different documents. Have pamphlets for those who walk right by as well as for those who stop and ask questions, those who seem very serious, etc. Overdo the copies!
4. Be sure to ask candidates questions as well
This is another point that will really set you apart from your competition. Many franchise owners come in with all of the answers and forget the power of engaging the candidate through questions of your own. You don’t have much time to make that first impression, so let them know that you value what they are looking for right away. Ask them about the industries that interest them, what they wanted to learn from the trade show, why they’re interested in franchise ownership, etc.
5. Coordinate a follow-up discussion before they leave your booth
Don’t just get someone’s number and information—actually plan that next follow-up right there on the spot. This won’t always work of course, but it’s a good idea to at least try and have an idea of when you will speak again. If coming up with a meeting time right away isn’t possible, make sure to follow-up on your own within three to five days after the expo.
As an extra tip, I would try to ask about financial aspects and intentions first. This certainly should not be your opening line, but before really following up with someone you want to make sure that you are a good match (and they’ll appreciate it, too).
It is also a good idea to write something unique down about the person so that you can remember them when the time comes. This isn’t always as easy as you might think going into your first expo, so give it a try.
How to Get Involved with Franchise exposTypically in order to get a booth at a franchise expo all you need to do is visit the franchise expo website and request exhibitor information. For example, you can check out one of the expos coming up next, The West Coast Franchise Expo at http://www.wcfexpo.com. The button or link is usually very visible, and there are always FAQ pages if it’s your first time, that talk about how to setup your booth, requirements for having a booth, etc.
Adam Heitzman is the Co-Founder and
Managing Partner at HigherVisibility,
a nationally recognized SEO firm that
offers a full range of Internet marketing
services.
For more information:
Website: www.highervisibility.com
Great Amer ican Deals
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A TEAM OF THREE FRANCHISEES TELL US ABOUT gREAT AMERICAN DEALS
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Great american Deals... Great american Dream
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Special offers flood e-mail inboxes daily but they don’t always apply to the consumer. In fact, after getting excited about the offer a subject line is promoting, we come to realize the coupon does not apply to our area.
Who wants a discount for something so far away from home?
“This isn’t a get rich quick kind of business; you really have to have your heart in it.”
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Plus the coupons are always for big box stores and name brand products.
That is where Great American Deals’ differ from the regular e-mail promotion. The company works within the community and creates deals with small businesses to help the consumer give back locally. This approach helps the customer discover gems within their own town while also supporting local businesses.
These highly localized deals not only help businesses acquire new customers but they also create retention and lifelong business relationships. Franchisees are familiar with the best local businesses and are passionate about the growth and prosperity of their community.
A team of three stay-at-home moms saw Great American Deals as a franchising opportunity that allowed them to give back locally, while also remaining involved parents.
Owners of North County Deals, Jianna King, her sister Jaysie McLinn and partner, Jodi Gallen loved the idea of helping schools and small businesses within their community.
“My dad comes from the franchising world and he and his business partner had been hearing about Great American Deals and approached my sister and I about the opportunity,” explained Jianna. “We milled around the idea for a while and researched it for a few months trying to think about our community and how it would help small businesses. We thought it would be a good fit for us.”
Located in Northern San Diego, the franchise was purchased in March of this year, with training completed in April. Jianna sees the area as the perfect location for a Great American Deals franchise because it supports local companies by helping strengthen their reputation within a tightknit family-oriented community.
Jodi Gallen, Jianna King and Jaysie McLinn
“We live by the coast so we are about ten to fifteen minutes from the ocean. It is very suburban, with lots of families, schools and lots of beach town communities,” explained Jianna.
Jianna graduated from San Diego State University in 2005 and has worked in sales and office management before becoming a stay-at-home mom. She is the mother of two young boys and enjoys volunteering at local schools. This franchise has allowed her to continue volunteering, while also directly contributing to the community. In fact, North County Deals will donate one dollar for every deal purchased to a local school, organization or charity of the consumer’s choice.
Jaysie graduated from California State University San Marcos and worked in the online operations department for Google Inc. She currently resides in North San Diego County and sees her business as a means to give back locally, while also contributing directly to her own daughter’s school.
Jodi has a background in marketing and has been involved in her children’s school. Being a mother of three, she enjoys using her experience to continue to support schools and small businesses.
After becoming business owners, the three women are currently working on creating a work-life balance.
“To be honest, the business kind of fell into our laps, we all have young children and we weren’t totally ready but when this came across us we couldn’t pass it up and we thought it was perfect,” said Jianna. “We can still pick our kids up from school, be with them and volunteer in the classroom while raising money for those schools and helping small businesses in the area. Like every new business, it takes a lot more than you would ever have initially anticipated. Of course, it is hard to balance any new job while being a mom because that is a full time job in itself.”
After signing the contract with Great American Deals, Jianna, Jaysie and Jodi went to the Beverly Hills office for three days of training.
Franchising USA
“It was nine hour days at corporate headquarters and we were exposed to tons of information. We had some people help us with social media, sales and how to approach schools for campaigns and it was really in depth,” recalled Jianna. “Real life experience has taught us more since then.”
There is continuous technical support too which really helps to make things run smoothly.
“We have lots of help with our marketing which is great because we are the face of the brand in our area. We spend lots of time being visible and active at community events which ultimately contributes to our success…” said Jianna.
“It’s also very important to be involved with the school system since they help spread the word about our great hyper local approach to the daily deal industry and, in turn, we offer them the easiest year-round fundraiser ever!”
For those considering a franchise
Franchising USA
“We can still pick our kids up from school, be with them and volunteer in the classroom, while
raising money for those schools and helping small businesses in the area.”
opportunity with Great American Deals, Jianna suggests they be involved within their community and concerned for it’s development.
“Someone needs to be well connected in the community and really passionate. This isn’t a get rich quick kind of business; you really have to have your heart in it,” said Jianna. “It doesn’t come quickly; it happens one e-mail at a time. It’s not something you can expect to happen over night.”
All three women are committed to their community in North San Diego and excited about remaining active mothers within their children’s lives. They also enjoy the gratification of knowing that their efforts are supporting small locally owned businesses along with the school system and that they are delivering great
discounts from the best nearby businesses to their neighbors.
“This franchise is not just geared towards moms but people who are passionate about seeing their community grow and really seeing the small businesses around them prosper. It’s about filling in the gap for small businesses. We truly care about the companies we work with and want to see them develop. I think that is the basis of the company,” said Jianna.
“The three of us are having a lot of fun doing this, we found this friendship and business partnership that we really are enjoying and we hope that we can make it successful.”
For more information visit:
http://franchising.greatamericandeals.com
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iNCREASE SAlES 3 WAYS 3 WAYS FRANCHISES CAN USE LOYALTY PROgRAMS AND SOCIAL MEDIA TO INCREASE SALES!
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Andre Kay, CEO & Chief Marketing Officer, Sociallybuzz
Today we live in a much more competitive business world than the one we used to know. Staying relevant and up to date might be a struggle for some franchise businesses especially when it comes to social media.
Using platforms such as Facebook or Twitter is now the most important way to help a business grow and create revenue, but how exactly?
1 Share pictures and other content so that the business
can appeal to customers.That’s right, one of the great benefits that the majority of social media platforms offer us is the ability to post and share images with other people. Restaurant owners are able to share mouth-watering pictures with their followers that will make
Franchising USA
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iNCREASE SAlES 3 WAYS 3 WAYS FRANCHISES CAN USE LOYALTY PROgRAMS AND SOCIAL MEDIA TO INCREASE SALES!
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them desire the restaurant’s best dish. The same goes for any other business.
Thanks to the success of social media platforms such as Instagram, Snapchat and Pinterest we know that great images captivate people and lead them to share that same content making it a great way to create an organic following for the company hence making it stand out among competitors. Sharing images is the best way to get across to an audience since it gives them a visual that can easily stay in their mind.
2 It allows businesses to become aware of their flaws.
This is something companies rarely see as something positive. Another benefit of being active on social media is that users review and critique businesses, this helps us learn where a business needs to improve in order to provide a better service. Even though this might not lead to an immediate boost of sales for a company, it will sure help the business become aware of their flaws and work on them making it possible for customers to keep coming back thanks to the improved service.
“one of the great benefits that the majority of social media platforms offer us is the ability to
post and share images with other people.”
3 A person who uses loyalty points is worth more than
regular customers.Using social media to promote loyalty programs is something businesses should be doing constantly on all of their platforms. It is said that offering loyalty programs can increase repeat shopper annual visits by up to 20 percent according to Shopify.com.
Another sort of loyalty program that may be used on customers is the check-in feature on many social media platforms. Encouraging customers to check-in at a business location by providing a discount is a great way to create loyal customers and get seen on a large scale through social media channels that could inspire future customers to use the business’s service.
In conclusion, social media and loyalty programs are not going away any time soon. These three simple tips can help franchisees and franchisors jump start their social media and loyalty program strategies.
Andre Kay is CEO and chief marketing
officer of Sociallybuzz, which exists
to help franchise owners grow their
business using social media. By helping
them reach relevant customers, build
customer loyalty, mange reputation
and increase revenue. We protect
relationship with their customer, create
effective campaigns, manage their social
channels and online reputation 24/7.
Read the company’s blog (http://
sociallybuzz.wordpress.com/), follow it
on Twitter and “like” its Facebook page.
or thoNoW®
Franchising USA
When a medical emergency happens, everyone immediately goes to an emergency room. The wait can last hours and can result in ineffective outcomes. A broken arm at the playground is not necessarily top priority in an emergency waiting room. orthoNoW® allows patients to skip that lengthy process and receive immediate treatment.
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OrthoNOW®EMERgENCY TREATMENT
WITHOUT THE WAIT!“Your kid falls, what do you do? He is holding his elbow, it’s swollen, and it hurts. So you go to the ER,” explained Dr. Alejandro Badia, CEO and Chief Medical Officer of OrthoNOW.
“That is what OrthoNOW® hopes to change. When you go to the ER you could wait up to five or six hours with a broken arm. It is not considered a medical emergency. Your child will need an x-ray and then be told to see an orthopedic surgeon for a follow-up visit. Then, you then have to navigate it with your insurance company. Think about what an ordeal that can be.”
The tag line is “because injuries don’t happen by appointment.” At OrthoNOW®, a child with a broken elbow would be seen within ten minutes, receive an x-ray and there is someone on site who can perform the appropriate splinting and a surgeon is avail able, if necessary. This scenario can be considered with an injured worker or sports injury amongst many other emergencies. OrthoNOW® simplifies this process, while also making it more expert and decreasing the costs.
“I was a franchisee of a general urgent care center organization. I was tired of seeing patients going the usual route. They would go to the ER and, by the time I saw them, it was pretty late in the game. They spent a lot of money and were very frustrated,” recalled Badia. “As a franchisee of the general urgent care center, the message wasn’t clear; the whole concept wasn’t focused. I was hoping to drive urgent care issues to it but, we had competitors in the area that had been there a long time. I learned a lot about the franchise concept and how a franchisee should be supported.”
Dr. Alejandro Badia
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Dr. Badia closed his franchise and reopened as OrthoNOW® in mid 2012 as an isolated orthopedic urgent care center. It began franchising in January 2014.
There are currently six franchises in Florida and five planned in South Jersey. There are territories available across the country.
“We have very strong leads in Southern California, Pennsylvania, Texas, the rest of Florida, Illinois, Massachusetts, and Maryland. It goes on and on. We are meeting with people in Boston next Wednesday,” explained Tom Ferro, President of OrthoNOW®. “We have had discussions with people on an international level. I think once the U.S. aspect becomes really entrenched, we should expand internationally within the next few years.”
The organization’s main focus is orthopedic services. It handles not only sprains and strains, but also concussions, which is a part of sports medicine. OrthoNOW® reaches out to sports teams and big employers to give them the ability to see the appropriate specialist right away without going through the middleman.
A typical general urgent care unit offers treatment by general physicians, while orthopedic providers staff OrthoNOW®. Once you enter the facility, there is no reason to leave for more medical attention.
“Orthopedic health care providers such as a single orthopedic surgeon, a group of orthopedic surgeons, or an ambulatory surgery owner, are all an ideal franchise fit for the company. However, secondary targets include private investors or someone with a healthcare industry understanding,” explained Ferro.
Healthcare is an opportunity that is constantly in need; it is not just a trend. As long as an investor receives the proper training, they could easily own a series of OrthoNOW® facilities in an area.
OrthoNOW® provides franchisees with various training and support before and after an opening. “One significant benefit of owning the franchise is the revenue portfolio management provided to franchisees through OrthoNOW®. This significantly expands the revenue potential for a franchisee vs. opening a center on their own. OrthoNOW® accomplishes
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this by the several exclusive strategic partnerships with various technology firms,” states Ferro.
The franchisee is invited to Miami pre-opening for a week of formal training across all aspects of the business from check in and office management to community marketing, including effectively leveraging various technologies.
“Essentially our goal is to train each individual franchisee in the best practices as far as running all aspects of the business and operations,” said Ferro.
There is ongoing support through quarterly business reviews with each franchisee, benchmarking their performances in different critical business categories. It is an opportunity for improvement and a means to identify areas of opportunity for growth through shared practices of why some clinics are doing better than others in a particular area.
“They could learn something and focus on growing their business. That way, it is an ongoing partnership and we plan on frequent touches with our franchisee. It’s not when you buy it, you own it and are on your own. We want each franchisee to be successful and our goal is to provide support on an ongoing basis, not only thru quarterly reviews,” continued Ferro.
There is currently no direct competitor with OrthoNOW®, except urgent care facilities and the emergency ward. OrthoNOW® provides many technologies and benefits from joining them as a franchisee, in comparison to other care facilities.
“Very rarely do you find a business that directly addresses every stakeholder involved. The benefits to the patients are very clear and concise: immediate effective treatment versus waiting for hours and higher costs elsewhere for
“The benefits to the patients are very clear and concise: immediate effective treatment versus
waiting for hours.”
Tom Ferro
or thoNoW®
treatment,” says Ferro.
The second stakeholder is the insurance company. The cost to the insurance company after the OR is $1500-$2000 at a minimum, depending on the injury for any orthopedic injury. Coming to OrthoNOW®, the average collection per patient is $275.
That is a significant cost savings, not only to the insurance provider, but also to the overall healthcare system.
The third stakeholder is the orthopedic surgeon. This model is a practice builder and serves as a patient magnet to attract new patients to help grow an orthopedic group practice.
“Once that patient comes into OrthoNOW®, it becomes a source to generate additional downstream revenues for that orthopedic group practice,” said Ferro. For instance, sixteen percent of the patients that come through the doors end up in surgery and twenty five percent are referred for rehab and many of those surgeons have a rehab clinic. And yet another source of downstream revenue is imaging technology. Seventeen percent of the patients require an MRI.
“We are an orthopedic group practice that is a fully integrated healthcare network: from injury to treatment to recovery,” continued Ferro.
OrthoNOW® provides many new and upcoming technologies, including ARPwave, which is an electrical stimulation device that triggers the nerves and reconfigures the messaging to the muscle. This device significantly reduces pain and increases range of motion by focusing on the problem, rather than the symptom.
“Every other technology on the market today is focusing on the symptom and sometimes you get temporary relief. However, by reconfiguring the messages of the nerves to the muscle, you’re able to address the problem. It’s a significant
Franchising USA
benefit,” explained Ferro.
OrthoNOW® is presenting new technology to the public and bringing orthopedic care to the consumer.
From a franchising perspective, an investor is provided with various technologies that strategically fit the business model as well as the patients that come through the door. “Part of our portfolio management services is exclusive technology and exclusive strategic partnerships,” said Ferro. “We have a space in orthopedic care and companies are partnering with us because this is a new market that we have created and a distribution channel for their product which provides a significant upside benefit to the franchisee.”
Whether it is reduced costs for certain products or access to exclusive technology, OrthoNOW® provides an advantage within its own marketplace.
“Anyone can put a shingle up and call themselves an orthopedic care facility but, we are not only offering a turn-key franchise but also providing a robust business model that will continuously provide additional revenue opportunities to grow the practice,” explained Ferro.
OrthoNOW® saves a lot of legwork by sorting through all the different technologies, setting up meetings with companies and offering a board
of colleagues with experience and information, while also providing a continuous profitable revenue stream.
ALEJANDRO BADIA, MD, FACS is a hand and upper extremity surgeon at Badia Hand to Shoulder Center in Doral, Florida. Dr. Badia was educated at Cornell and NYU, trained in orthopedics at Bellevue Hospital/NYU Medical Center, a hand/microsurgery fellowship in Pittsburgh and trauma fellowship in Germany. Badia served as worldwide president of ISSPORTH and co-founded the MARC Training Laboratory. He recently launched OrthoNOW®, the only orthopedic urgent care center franchise.
TOM FERRO is a global healthcare industry senior executive cross-functionally trained in sales, marketing, product development, business development, and market development with the industry’s top firms including: Johnson & Johnson, Stryker Corporation, Biomet, Becton Dickinson and Company, and Baxter. Tom has also been involved at the executive level in two start-ups including: Global Orthopedic Network, Inc. and is currently the President of OrthoNOW®.
For more information visit: www.orthonowcare.com
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“orthoNoW is presenting new technology to the public and bringing orthopedic care to the
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SAFE. CLEAN. FUN.® FOR ALL AGES!SAFE. CLEAN. FUN.® FOR ALL AGES!
THE ULTIMATE FRANCHISE!THE ULTIMATE FRANCHISE!
SAMPLE REVENUE & INCOME*
$2,093,280 GROSS SALES
$821,181 OPERATING INCOME
39.23% NET MARGIN
ASSET REQUIREMENTS
$1,000,000 NET WORTH
$500,000 LIQUID ASSETS
SAMPLE REVENUE & INCOME*
$2,093,280
$821,181
39.23%
ASSET REQUIREMENTS
$1,000,000
$500,000
* Figures obtained from our Dublin, California location as published in Items 7 and 19 of our 2014 Franchise Disclosure Document (FDD). For complete performance of all Rockin’Jump locations please see item 19 of our FDD. A new franchisee's results may differ from the represented performance. There is no assurance that you will do as well, and you must accept that risk.
** This advertisement is not an offering. An offering can only be made by prospectus filed first with the department of law of the state of New York. Such filing does not constitute approval by the department of law.
ROCKIN' JUMP IS THE ULTIMATE FRANCHISE OPPORTUNITY! ROCKIN’ JUMP PARKS OFFER CHILDREN AND ADULTS A SAFE. CLEAN. FUN ® VENUE TO PLAY, MEET UP WITH FRIENDS, AND HOST EXTRAORDINARY GROUP EVENTS.
ROCKIN' JUMP’S TRADEMARKED SAFETY PROGRAM, UNIQUE OPERATIONAL PLATFORM AND WELL ORGANIZED TRAINING & SUPPORT FEATURES REMOVE THE GUESS WORK AND ASSISTYOU IN YOUR PATH TO SUCCESS.
FOR MORE INFORMATION VISIT: FRANCHISE.ROCKINJUMP.COM
PHONE: 415.225.6037EMAIL: [email protected]
ROCKIN' JUMP IS THE ULTIMATE FRANCHISE OPPORTUNITY!
PHONE: 415.225.6037EMAIL: [email protected]
Franchising USA
WHAT’S THE HURRY? David Banfield, President, The Interface Financial Group
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If your flight has been called and you are not yet at the gate, there is good reason to make a spirited dash to the departure gate. There may be many examples where there is a viable reason to rush through things to get to the end. However, when thinking about self-employment and entrepreneurship, there is little reason for anything other than a planned and sometimes cautious approach.
There are many variables to consider, and each needs appropriate time and research. If franchising is the preferred route into owning one’s own business, then timely research is still the order of the day. The franchise marketplace today has literally thousands of opportunities, and the good news is that with a franchise you can invariably gather a great wealth of information to enable you to complete the appropriate due diligence exercise.
Pursuing a franchise opportunity is, for
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Franchising USA
David Banfield
most people, a life changing situation. Many would-be franchisees have been in a corporate employment situation - often for many years - and stepping into a franchise might, for some, seem like stepping into the unknown.
There should be no hurry - the franchise will not take off without you. As you work through the process there are many aspects to consider, review, and research. Each aspect demands a thorough review to ensure that you are not flying ‘blind’ but have all of the appropriate data.
Some of the specific areas that you need to review are: the type of franchise, location, structure, and your own legal framework.
In reviewing the type of franchise to pursue, most people have a fairly set view of what they would like to do. Many, perhaps inappropriately, think they can turn their ‘hobby’ into a business, and that business already fits an established category. Be careful. While on the face of it this makes sense, something you enjoy turning into your own business may not work for you or the franchisor. Always remember that a franchise is a tried and proven system. Turning a hobby into a franchise invariably means doing the thing you like to do in a completely different manner and time frame. Under a franchise format, what you did as a hobby becomes a business designed to operate on regular hours to make a profit at the end of the day.
Franchise location is something to explore with the franchisor. Most, but not all, franchises come with a fixed territory. The first question is naturally - is there a territory available in my immediate area? If not, then is relocation an option? The franchise review process now takes on an additional dimension as you start to
consider the ramifications of relocation of, maybe, not just yourself but your entire family. The cost of that relocation must also be factored into the overall cost of the new franchise operation. Will it now take longer to reach the break-even point?
When examining franchises you will readily realize that there are numerous business models to consider. Some franchises, as we have stated, are territory dependent; some require extensive premises and build-out facilities, and many will require staff and specialized equipment.
The franchise structure will also vary in terms of financial requirements. Some will require a fixed amount of capital and expenditure, and in some cases franchisors offer financing packages or arrange those on behalf of their prospective franchisees. Some franchises have an offering whereby there is only the need to pay a one-time franchise fee, and then the franchise is royalty free. Such an arrangement usually requires the franchisee to acquire products or services exclusively from the franchisor, at the franchisor’s stated price level.
While this is at best a very brief overview of some topics that need to be on a prospective franchisee’s investigation list, and they certainly are just a brief selection, there is always help in the research area in the form of a disclosure document. This sometimes lengthy document will answer many of the basic questions surrounding the model on offer. What it cannot address is how you as an individual will fit into that particular franchise model.
This is where your own detailed and sometimes time-consuming research must take over. In looking at the relocation issue as discussed above, the disclosure
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“There should be no hurry - the franchise will not take off without you. As you work through
the process there are many aspects to consider, review, and research.”
document will not necessarily have the answer. Research into the new location, not only for the business but perhaps for a family relocation, will take time and energy to pursue.
As you start to look at franchise models and types, you may become overwhelmed at the variety and sometimes complexity of the individual models. Prepare a basic plan ahead of time so that you are not easily distracted from your main line of enquiry.
The bottom line is naturally to end up in a business where you are comfortable, and where you can clearly see the profitability of the business over the appropriate time span. Getting to the bottom line is not something that should be hurried. You can’t buy a franchise off the shelf, even if it is a proven brand. Research and then maybe some more research are the prime requirements to ensure that you end up with the right choice for you.
David Banfield is President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status.
Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas.
For more information: Website: www.interfacefinancial.com
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Working from home can be great. No commute, your own amenities, the chance to make a hot lunch instead of having leftovers or sandwiches and don’t forget pajamas, the uniform of people who work at home. Okay, so most home-based franchises do require you to leave the house, but you still get to be your own boss and run your business from the comfort of your own home. This helps you save on rent for an office and leads to some great tax write offs. And, you wouldn’t want to spend all day cooped up in your house anyway, right?
The fact is that most home-based franchise businesses actually require you to get out there and schmooze, because usually you aren’t waiting for people to come to you.
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It’s up to you to get out there and drum up business.
The range of home-based franchise businesses is wide. In fact, almost every type of franchising opportunity has home-based franchises available. According to 2011 numbers from Entrepreneur, these are the amount of home-based businesses that make up the following sectors:
• Automotive 21 percent
• Business Services 66 percent
• Children’s Businesses 41 percent
• Financial Services 43 percent
• Home Improvement 82 percent
• Maintenance Services 81 percent
• Senior Care 30 percent
• Technology or Internet 75 percent
The numbers on small home-based businesses are pretty staggering. According to the U.S. Small Business Administration, there are 25.8 million businesses in the United States. Amazingly, over 99 percent of all employers are small and home-based businesses. Small and home-based businesses and franchises employ just over 50 percent of all private sector employees, plus they generated 64 percent of new jobs in the country over the past 15 years. They really are the lifeblood of the country.
The recession a few years ago saw an upsurge in people working from home, as they were laid off from jobs and had to reinvent themselves. Companies also began increasingly hiring independent contractors, fuelling the growing number of small home-based businesses to fill this demand.
People’s increasingly hectic lifestyles are also causing them to turn to home based businesses and franchises. Facing lengthy commutes and demands on their time, many people are opting to make their home their place of employment so they
can be around home and family more, even if they’re there in a working capacity.
ADvANTAGeS oF WorkING AT HoMe
byobNo, that doesn’t stand for bring your own beer, at least not in this case. It stands for be your own boss and that’s exactly what you get to be when you run a franchise from home. Being your own boss at home means you’re not trapped in a set work day. While you definitely don’t want to waste time with too much distraction, working at home means you get to keep the hours you want to keep and can step out when you need to run an errand or just to take a bit of a stress break without having to ask anyone’s permission.
commutelessIt may not be a word, but it will be a reality for you if you open a home-based franchise. You’ll save time (more time to sleep in the morning, less time to go from work to home life), you’ll save money on fuel or public transportation and you’ll save yourself the stress of those roads packed with people who want to be anywhere but on the road heading to work in the morning.
AffordabilityThe most obvious item you’ll be saving money on is rent. There will be a drastically reduced initial investment starting out at home and operational costs will be much easier to keep down, too. According to a 2009 report from Franchise Direct that included a representative sample of 33 home-based franchises, the average total initial investment for a home-based franchise can range from just under $45,600 to just over $94,800.
versatility and Personal GrowthThe old saying jack-of-all-trades may as well have been invented for home based businesses. Many jobs only require people to master a couple of specific tasks, which can cause boredom. However, running a home-based franchise means you’ll need to jump in and get experience in all facets of running a business, including marketing, sales, strategic planning, research and development, customer service and human resources. You’ll also be the president and CEO, meaning the buck stops with you. But, you won’t have to go it completely alone. Your franchisor will offer you support and guidance every step of the way.
“The average total initial investment for a home-based franchise can range from just under
$45,600 to just over $94,800.”
Feature
A Proven business ModelAnd, maybe the most important thing, when you open a home-based franchise you will have the aforementioned backing and support of a brand and an entire business system that is already established. An independent home-based business does not have the luxury of a system like this, but as a franchisee, you get to tap into a network that wants you to succeed as much as you do because it’s in everybody’s best interest if you succeed.
easier?A lot of people equate home-based with easy, but that’s simply not the case. Being in the comfort of your own home means you run into some unique problems, like getting too comfortable.
“Don’t go into franchising thinking it’s a one way ticket to easy street,” Franchise Opportunities Network president Garth Snider told Inc.com. “Most franchisees will say it’s well worth it, but it is hard work,” Snider says. “If you’re easily distracted by the kids or Oprah, then [a home office] may not be the best environment for you.”
Snider, a franchise law attorney, says you can expect to work long hours, at least for the first while, as you get up and running. Those long hours can stretch into 12 or 14 hour days and when your home is your office, it makes it that much more difficult to get away from work.
look beFore yoU leAPSome questions to ask yourself before deciding on a home-based franchise are:
• Can I work for long stretches in a solitary environment?
• Does my home have enough space to fit an office?
• Am I a self-motivated and organized enough person to work from home?
• Will I feel comfortable living where I work?
Something else you have to consider is whether you will legally be allowed to open a business in your home. You’ll need to check with your municipal government about zoning and what types of commercial endeavors you’re allowed to run out of your home.
Since most home owners insurance doesn’t cover losses of business equipment, technology, income, liability exposure, medical costs and other risks faced by home-based business owners, additional insurance will likely have to be purchased for you to be completely covered. And if you have customers or other people related to your business coming into your home for business purposes, you will need liability insurance to cover you if a customer or employee is injured.
Obviously, you’ll also need to prepare your home to accommodate an office. Just designating a corner of the basement may be enough, but it’s a good idea to try and emulate an actual working environment
Franchising USA
look out for our next special feature:
Food Franchising
Rob Swystun
where you can keep your home life out so it helps you concentrate on work while you’re in there. If you’re using a landline, try to get a separate one for the business.
Another tip is to get dressed every morning for work, which will help keep your mind on business and keep you motivated (until you get used to it, then you might be able to slip in some PJ time).
And don’t forget the business license. Just because it’s being run out of a house doesn’t mean you get to bypass the licensing.
The low startup investment, quicker startup time, lower overhead, lack of commute and advances in technology that makes working from home completely viable nowadays have all contributed to home based franchises’ increase in popularity. Those advantages, coupled with the backing and support of an established business network make at-home franchising a lucrative option for many.
ABOUT THE AUTHOR: A former journalist, Rob Swystun, has been writing professionally since 2006 and now concentrates on freelance writing. He lives in Winnipeg and is currently an Athabasca University student studying for a BA in Communications.
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Franchising USA
IT’S “WOW” OR NEVER
CRAIG MERRILLSWashington DC
Franchise Partner
WOW1DAY.COM | 1-888-WOW-1DAY
Don’t miss your opportunity to be a part of America’s next $100 million brand. By leveraging the success of their sister company 1-800-GOT-JUNK?, WOW 1 DAY PAINTING is revolutionizing the home improvement space, bringing innovation and professionalism to an age old industry.
Franchising USA
Bryce Ebeling, Founder and CEO, LoyaltyGenerator
Franchising USA
exp
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dvic
e franchise support best practices
its uniqueness. Franchises always start as an idea, fostered by a plan. Through hard work, sleepless nights and countless sacrifices, the plan coalesces into a successful business proposition. The fact that the entrepreneur endured hardships and succeeded, means they can more rapidly scale their “baby” and leverage their experience by allowing others to replicate their success while avoiding countless traps and mistakes they made along the way.
But, there’s just one problem; no one ever teaches the new franchisor how to be a good franchisor. When the IFA conference was in San Diego, I remember speaking with Sharon, director of marketing for a sizeable multi-brand franchise system. I had just completed a divestiture of my franchise when we began to swap “franchise support” war stories. I shared with her that while I often communicated with my corporate office’s support staff, in the several years I owned my top-performing franchise, I received one proactive communication from the staff member directly responsible for the success of any franchise, my Franchise Performance Coach (FPC).
I never had the need to reach out to this person; I always knew who to connect with at HQ when I needed something. The most unfortunate detail of the story, was that when having my final conversation (as a franchisee) with the senior vice president of franchise operations, I heard excuses rather than questions about how this could be averted in the future. Hearing that from one of the most senior staff members responsible for franchisee success was shockingly pathetic.
Sharon then shared one of the most mind-boggling antidotes I had heard in
The relationship between a franchisor and a franchisee can be a delicate subject. However, there are certain processes and best practices employed by effective franchise organizations that can be duplicated to ensure successful franchise relationships.
Finding a franchisor that is capable of providing the appropriate amount of support is one of the most important characteristics when vetting potential franchise opportunities. This factor is important because whether you will rely on franchise support or not, many of your peers will require support to sustain the brand’s integrity. Emphasis on the importance of building positive relationships between a franchisor and a franchisee will help with the successful implementation and adoption of company-wide strategies and initiatives.
After 15 years of doing business in the franchise industry, I’m still in awe of
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franchise support best practices
Bryce Ebeling
“Franchisees don’t know what they don’t know, so let’s err on the side of over support rather
than under support.”
11-plus years of franchising. She started the story noting that several of her brands had experienced a high level of franchisee attrition in 2008. In her story, the FPCs supported franchisees across multiple brands. Sharon was on a planning call with the entire franchise marketing and operations teams when one of the most senior FPCs said, “My personal goal in 2009 is to proactively reach out and assist my worst-performing franchisees rather than waiting for them to ask for help.”
Read that again.
What’s worse, she added, was that the other FPCs were excited about this goal.
I can’t decide which is worse - the FPC admitting in front of their entire team that they weren’t doing their job, his colleagues agreeing with him or that no other management personnel was concerned about the admission.
Over the years I’ve worked at a franchise headquarters and have been a franchisee myself, and I understand the tight ropes the franchisor must constantly walk. No matter which side of the franchise model you are from, both stories are unacceptable behavior at EVERY level. Not only are they likely a breach of the legal terms of franchise support models but shouldn’t everyone at corporate recognize that franchisees only ask for help when it’s too late? It’s the franchisor’s job to be proactive.
One of the first franchise systems I worked at had one of the best and most consistent support models I have ever seen in franchising and it was created because they had been sued by a franchisee. The franchisee claimed they weren’t provided the support promised in the franchise agreement. Fortunately for the brand, they
lost that lawsuit which prompted them to document EVERYTHING moving forward.
They even developed a custom CRM system that identified franchisees that were overdue for staff visits, among other support issues. The audit system made management recognize that reactive support wasn’t enough to provide their franchisees adequate support for success and fulfill their duties as a franchisor. And here was their key takeaway…franchisees don’t know what they don’t know, so let’s err on the side of over support rather than under support.
Below are a handful of strategies to identify if your prospective franchisor partner has a franchisee communication strategy and a manner in which to hold staff members accountable.
Ask these questions to more than one corporate executive:
1) “As of right now, how many franchisees have not had a call from an FPC in the last 30 days?” Follow up with, “How do you know and how do you verify this?”
2) Ask how many on-site visits each franchisee receives per year (excluding new franchisee training initiatives) in addition to the FPC site visits.
During your franchisee due diligence, ask more than one franchisee the following questions:
1) How frequently do you have planning calls with your FPC? How long do these call last, what do they entail and how in depth are they?
2) How many visits have you had from your FPC in the past 12 months?
3) Over the past two years, how many different corporate staff members have visited you on-site?
By asking similar questions of the corporate executives and the franchisees during your due diligence process, you
will be able to quickly understand whether the corporate executives really have their franchisee support under reasonable control or if they are just winging it. If the corporate executive can’t tell you, with a fair amount of certainty, how many franchisees are behind in support calls or the answers from your franchisee discussions don’t reasonably align with the answers from corporate, it may be a red flag worth paying more attention to.
Bryce Ebeling is the founder and CEO of
LoyaltyGenerator, an automated cross-
media marketing platform that offers
franchisors and franchisees a single
point of access to an email solution,
direct mail printing, text message
provider and customer data analysis.
With more than 15 years of experience
working in and around franchising,
Bryce worked in support roles at two
mature franchise systems, owned and
operated a successful franchise ranked
in the top 20 percent of more than 300
units and has consulted with hundreds
of independent franchise and non-
franchised owners on marketing and
operational related challenges.
For more information:
Visit www.loygen.com/blog
Franchising USA
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OCTOBER 2014
STREETSHARES takinG it tO the street!
www.franchisingusamagazine.com
PiNOT’S PAlETTE aWards First VetFran deal
FRESH COAT PaintinG dOne riGht
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Franchising USA
CONTENTS
V E T E R A N S I N F R A N C H I S I N g S U P P L E M E N TO C T O B E R 2 0 1 4
Our Veterans in Franchising special supplement has become
a regular feature of Franchising USA.
TO SHARE YOUR STORY in the next issue, please contact
Vikki Bradbury, Publisher
Phone: 778 426 2446
Email: [email protected]
News & Expert Advice46 StreetShares. Taking it to the Street! Jim Mingey, Veterans Business Services
Profiles40 Best in Class Education
42 Pinot’s Palette
44 Fresh Coat Painters
Franchising USA
best in class educat ion
best in class education is proud of our U.S. veterans. you have bravely served our country and risked your lives to protect our nation. We know you are passionate about improving the lives of Americans in any way you can and we thank you for your sacrifice. We would like to honor you, our veterans, by offering special incentives to open a Best in Class Franchise.
Best in Class is offering a “3-3-3 Veteran Incentive”. We are giving $3,000 off the franchise fee for the first three centers you open. In addition, we are waiving the royalty for the first three months of opening a center.
A Best in Class Education Franchise makes a difference in the lives of our nation’s children. If you have a passion for education and a real desire to invest in your future - and the future of young students in your local area - a Best in Class Education Center may be the key to opening the doors to the future. What better way to continue to serve our country than by serving our nation’s youth?
The Best in Class organization is perfectly positioned for growth in the education franchise industry. Since we began operating education centers over twenty years ago, we have demonstrated that we can garner results for students of all types, and in multiple markets across the U.S. Now we are looking for motivated, qualified people to join us in our quest to bring top-quality, results-oriented education services to students everywhere. You can make a difference in the lives of school children in your community by operating an education franchise with
Franchising USA
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a stellar reputation and a time-tested business model and curriculum. If you have a passion for education and a real desire to invest in your future and the future of young students in your local area, a Best in Class Education Center may be the key to opening the doors to the future.
About best in class education centerBest in Class Education is not just our name, but our motto as well. In addition to giving top of the line education from quality instructors, we offer a fully customizable approach towards learning that is sure to move your children towards the head of their class. With weekly testing and fully developed course materials, we monitor students’ progress every step of the way. Your children will gain a sense of confidence and excitement towards learning unlike any they have experienced before.
Best in Class Education Centers are institutions specialized in tutoring Mathematics and English for both enrichment and remedial purposes.
Opened in Washington in 1995, Best in Class Education Center is committed to strengthening students’ analytical and reasoning skills through our tailor-made teaching materials and professional guidance. The exercises are carefully formulated and tested so as to provide students with enough drilling in different aspects. They enable students to have a complete revision of their learned topics. As an educator, we encourage students to develop their potentials and make progress whenever possible. Therefore, if students are capable of learning something ahead of their day school curriculum schedules, they can proceed to learn and practice it under our step-by-step guidance. In fact, some students are doing mathematics three grades higher than in day school. This learn-at-your-own-pace approach renders the learning process more flexible and prepares students for their future academic needs.
Learn more about Best in Class
franchise opportunities at
http://www.veteransbusinessservices.us/
product-item/best-in-class-education
BEST iN ClASS EDUCATiON buy a franchise that makes a Difference
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OCTOBER 23-25, 2014 ANAHEIM CONVENTION CENTER
ANAHEIM, CA
Are you ready to take control of your own destiny, fulfill that dream and have a better quality of life with financial security? Consider owning a franchise. A franchise allows you to be in business for yourself but not by yourself, with a proven business system that gives you endless support and branding.
At the West Coast Franchise Expo:
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Franchising USA
Pinot ’s Pa let te
Doesn’t have to be
a blank canvas
PINOT’S PALETTE AWARDS FIRST VETFRAN DEAL
Franchising USA
Waylon White, 37, had already completed one U.S. tour in Iraq when he volunteered to return for a 2nd deployment to train Iraqi forces in May 2006. little did the U.S. Marine corps captain know, his next visit would not be like his first.
There for only 22 days, Waylon and a fellow Marine Captain were embedded with 60 Iraqi soldiers when insurgents began attacking their small compound. The other Marine was killed in that attack, and Waylon was knocked unconscious from an exploding mortar round. He would later wake up in Germany at Landstuhl Regional Medical Center with a list of injuries including a fractured skull, shrapnel is his back and arms, and skin missing from areas on his arms and face.
“I couldn’t believe I survived,” Waylon, a recipient of the Bronze Star and Purple Heart, said. “I don’t recall every moment of that day, but I knew shortly after I woke up in Germany that, as hard as it was going to be, I had to recoup and figure out what I was going to do next.”
But he wouldn’t go at it alone. Victoria White, 33, would be instrumental in shaping what would come next for Waylon. The couple, now with three children, first met right before Waylon returned to Iraq and later reconnected after he returned to the U.S. in October 2006. Eventually
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Waylon and Victoria made their way to Kansas, got married and discovered they wanted to own their own business.
“Victoria went with her friends to a Pinot’s Palette location and instantly fell in love with it,” Waylon recalled. “Then we both went together to a class, and quickly looked into owning our own paint-and-sip studio.”
Waylon and Victoria would also be the fast growing paint-and-sip franchisor’s first VetFran franchisee. The program, available to members of the International Franchise Association, helps U.S. military veterans locate franchise opportunities
and provides a path toward business ownership with training, mentoring opportunities and financial assistance. As a member of VetFran, Pinot’s Palette offers veterans a 10 percent discount on its current franchise fee, reducing it to $22,500.
“The team in Houston was incredibly attentive and helpful,” Waylon said. “From the initial contact to assisting us with opening our first studio, we could not be more happy with our decision.”
The couple plans to open their new studio this December in Lawrence, Kansas.
“VetFran is a great program and we’re
thrilled to be Pinot’s Palette’s first veteran-owned franchise to receive the benefits of this partnership,” Waylon said. “It’s hard to believe that after all we’ve gone through to get here, that we will soon be opening the doors to our very own studio.”
For more information about Pinot’s
Palette franchise opportunities or to
locate the nearest studio, visit www.
pinotspalette.com.
To learn more about Pinot’s Palette
VetFran opportunities go to
www.pinotspalette.com/vetfran and
submit the online form to access the
brochure.
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At Fresh coat our model is designed to do two things: Service the customer and make our owners money.
Our customers are seniors, busy families and small business owners. We are America’s Number One trusted painting company. Our owners focus on managing the business and ensuring the customers’ needs are met.
Are you a business professional who believes our seniors and busy families deserve a trusted contractor who delivers on their promise? Are you tired of working long hours for someone else? Are you ready to make the money you are worth?
Fresh Coat guides you every step of the way to become a successful franchise owner. Start the qualification process today!
What’s in it for you? • Turnkey business - launch in under six
weeks!
• Industry leading profit margins
• Home based
• Low start-up costs with financing available
• Recurring revenue – loyal customers and referrals
• Exclusive, protected territory
• Recession resistant - $40 billion industry that can’t be outsourced!
5 Profit centers • Residential (interior and exterior)
• Commercial and office buildings
• Real estate-based programs
• National accounts
• Government contracts
For more information: Website: www.freshcoatpainters.com
Fresh coat Pa inters
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“The low start-up cost and return on investment are what attracted me to Fresh Coat and the proven systems and operations support provided a structure that facilitated a rapid launch. The experienced leadership team is forward thinking and driven to help me succeed. I highly recommend Fresh Coat for those looking to leverage their leadership skills and commitment to succeed as business owners.”
Rich Whitaker - Fresh Coat Franchise Owner and Veteran.
“To us Fresh Coat has meant freedom. We had the desire to own our own business and to have the freedom to manage our lives around that. However, we knew we needed the support of a franchise to make that desire a reality. The Fresh Coat program and Operations team have done just that for us. We are proud to be part of the Fresh Coat family of other franchise owners who continuously support one another and our tagline of “Painting Done Right”!
Sarah Ross.
fresh coat – paintinG Done riGht….A PROVEN BUSINESS YOU CAN BE PROUD OF!
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You will notice some innovative changes at IFA's 2015 annual convention! We've upped the ante with new enhanced features and paramount educational and networking events. You
don’t want to miss franchising’s biggest and best event of the year!
HERE’S WHY:
DON'T MISS THE BIGGEST FRANCHISE EVENT OF THE YEAR!
Unique networking opportunities will connect you with other franchise executives to expand your portfolio of contacts and cultivate partnerships that will help you and your brand get to the next level.
Interactive roundtable discussions led by experienced and savvy franchise leaders will give you an array of new and exciting information that will help you grow and evolve your brand.
Informative educational sessions focus on hot topics that impact your bottom line – everything from operations, technology, franchise relationships, sales & development and more. This is the perfect event to showcase your innovative brand in the exhibit hall!
convention.franchise.orgTHE EARLY BIRD CATCHES THE SAVINGS!IFA Members: Register before October 24 and save $50!
REGISTER NOWRegistering online is now easier than ever with our
newly improved and streamlined
process!
Contact Lynette James at 202-662-0782 or [email protected] if you are interested in exhibiting or sponsoring.
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IRAq VETERAN DEVELOPS INNOVATIVE PEER-TO-PEER LENDINg SYSTEM
VETERANS WITH FRANCHISES gET BETTER ACCESS TO CREDIT
takinG it to the street!
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After World War II, millions of American veterans became business owners. This “greatest generation” sparked an economic boom, and America flourished. Banks were smaller, community-oriented, and supporters of small business. Oh, right, business owners had access to these small business loans. Times may be changing back to the future!
When Veterans say, “leave no man behind,” that may now include a Veteran left behind by a loan rejection at a bank. A Veteran can now go to his peers and other investors to pitch his project directly. That’s the thesis at a new company called Street Shares which was started and now run by an Iraq War Veteran, Mark L. Rockefeller. And he’s already taking it to the streets. According to Mark “One could describe StreetShares as Shark Tank meets eBay.” It’s the only place in America where the borrower ‘pitches’ and the Investor ‘bids’ for a loan. Investors also get to see the data like any lender, but like the old days, get more exposure to the borrower’s character as well.
StreetShares is a social lending marketplace that connects small business owners with investors. Small business owners create business pitches to request loans from institutional and retail investors. Investors make bids to back a loan to the small business. The end result: Small business owners get the loans they need, and investors get the returns they require. Loan amounts are up to
$50,000 but don’t necessarily need full asset security for approval. The minimum requirements include being in business for one year, earning revenue, being incorporated or a single member LLC, plus having reasonable credit and being willing to guarantee the loan.
Unlike crowdfunding sites that simply bring together businesses and investors, StreetShares stands in the middle of the transaction, issues the loan to borrowers, and manages repayments to investors. Also, StreetShares provides small business loans, not equity investments. This way, business owners do not have to give up ownership, and investors do not have to wait years before receiving any returns. But like crowdfunding, StreetShares provides an online marketplace that democratizes capital, gives approved investor members the opportunity to invest in private businesses, and gives businesses the opportunity to obtain funding from large numbers of investors, including other Veterans and their customers.
Have a cool story? Tell it!Veteran borrowers get to ‘pitch’ directly to potential investors, tell about their companies and why they’re requesting the loan. Veterans can let them know why a product or service will succeed allowing them the chance to set their company apart from the competition.
Investors bid on their returnsOn the investor side of the transaction, bidding is done through a “reverse auction” process. The winning bids are those with the lowest interest rate demanded by investors. Investors search for and select borrower loan requests they find attractive. Then they choose
Jim Mingey
an amount and rate they want to bid. During the course of the auction, multiple investors place bids to fund “loan shares” of the overall loan request. All bids are transparent to all investors, and investors place bids, naming both the amount they wish to invest and the interest rate they require to back the loan. Bids can be as low as $25 or as high as the entire remaining amount on the loan request. StreetShares places the first bid, co-investing in every loan at a rate StreetShares thinks is appropriate given the risk. At the end of the auction, the bids with the lowest interest-rate demands that equal the remaining loan amount are consolidated to form the financial backing for the loan. The more bids in the auction, the lower the interest rate the business borrower will pay. At the end of the auction, the borrower can elect to accept or decline the offered loan.
It’s tough for any entrepreneur to get financing in the early stages of a business so the StreetShares peer-to-peer lending model could well be a game changer both for Veteran franchises and other community small businesses. It’s appropriate that a member of the next “greatest generation” is the pioneer.
For more information visit: http://www.veteransbusinessservices.us/portfolio-item/streetshares
“When veterans say, “leave no man behind,” that may now include a veteran left behind by a loan
rejection at a bank.”
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George Knauf, Senior Franchise Business Advisor, FranChoice
Franchising USA
As I advise corporate professionals every day, spending more doesn’t necessarily mean making more. There are good businesses that you can start from a home based office that will get you positioned to move down the path to independence, freedom and control over your earnings.
For some the home base is a first step in the growth of their business empire that may eventually require an office, for others it will be the way they operate going
forward and for others it is where they do most of the work for their semi-absentee retail business.
Home based operations can save money in some key areas: Staffing, infrastructure and sometimes inventory. Many of our candidates look at home based options to fit within a particular start-up budget, others want to operate this way to achieve a lifestyle goal. If you are looking for a cost effective way to get into business then home based businesses are the starting point for an investigation.
When looking for businesses, as always, the match between the model of candidate (skills, strengths, working habits, goals, etc.) and the model of the typical owner in that business must match. There is no long term benefit to you in getting excited over a product or service if you will not want to do the work.
With traditional home based businesses you may have a small staff, if any at
all, and the owner will wear most of the hats. Most companies with staffing requirements would set their base of operations out of an office or retail location so that the employees have someplace to come to check in, get their tasks and meet with their managers.
How you will want to spend your day will also be a factor. Your day as a home based business owner may have a broad range of activities from administrative tasks to networking, sales, marketing and delivering your product or service directly to the client.
Do you prefer to spend your time in the office most of the day, and what tasks do you enjoy doing there? Or, do you prefer to just stop in the office to gather your materials and get out in your community to meet with clients?
For our candidates that are used to spending hours per day commuting to a job working from home or in their
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EMPIRE BUILDINg FROM YOUR BASEMENT!
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george Knauf
community is a luxury they learn to love fast. They get to do work they are good at, build their future and spend more time with their family.
If I broke down fully home based businesses into what seem to be the most obvious skill sets, to me they would be:
•Sales- Brokering goods or services
- Acting as a matchmaker between service providers, sellers, buyers and clients
•Professionalservices- Business consulting/coaching
- High tech services – in an executive role
- Educational services
•Technicalorrepairservices- Upholstery repair
- High tech services- in a technician role
- Auto
- Vending
- Home inspection
Through these categories we see a broad range of skill sets and working preferences. Some are aimed at a more professional role while others are more hands on technician roles.
If you enjoy getting your hands on your work, being involved in fixing or repairing things, then there are a variety of options where you can load up a specialized and branded vehicle to go out and service client’s needs. This could be a simple process of restocking a vending machine and collecting change, doing very detailed repairs on leather upholstery for retailers and car dealerships or even installing very high tech equipment. These hands on roles will require physical capability to do the work and sometimes unique requirements like being able to match a broad spectrum of colors well.
These hands on roles are great for candidates that like to focus on a single task, complete it to a very high degree of quality and see a finished result in a short
period of time. Often these candidates do not want to manage a larger team of employees.
If you are in a more professional mindset, you might check into your home office to organize your day then go to the local chamber of commerce breakfast before going to scheduled appointments with clients. After your appointments you might have time set aside for more networking or putting together an advertising campaign.
Either of these roles could theoretically offer room to grow a team, and your business empire, beyond the work that you can do all by yourself.
There are some unique challenges in home based businesses:
•Managingyourtime- Nobody will be checking in to see
how hard you are working, there will be no boss standing over you, no risk of being downsized to scare you into working hard.
- You will have to be self-motivated, though you will have a support team of cheerleaders in the franchisor.
- At first, every one you know or are related to will think that you can come out and play any time! Just one round of golf per week please!
- Times that you can be seeing clients are your “money hours”, do paperwork and administrative functions outside of those hours.
•Runningahomeofficeasopposed to a social hangout for family or friends- Set office hours, tape them to the
door, lock the door if you have to
- Schedule any to-do’s or family activities and plan on making up lost time for the benefit of your business.
- To some extent your hours will be
flexible, within the acceptable hours of your clients. You can’t service clients when they are not there!
•Companyvehicles- Your company vehicle has to look in
perfect condition, clean, organized and well maintained at all times. It is your billboard!
- Don’t skimp on any auto wrap recommended by the franchisor.
As the most cost effect franchises, home based businesses offer really interesting avenues to begin building your business empire. Select well and you could have many years of doing something you love.
Mr. Knauf is a highly sought after, trusted advisor to many companies; Public, Independent and Franchised, of all sizes and in many markets. His 20 plus years of experience in both start-up and mature business operations makes him uniquely qualified to advise individuals that have dreamed of going into business for themselves in order to gain more control, independence, time flexibility and to be able to earn in proportion to their real contribution.
For more information: Website: www.georgeknauf.com
“As the most cost effect franchises, home based businesses offer really interesting avenues to
begin building your business empire.”
George Knauf, Senior Franchise Business Advisor, FranChoice
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Visit LittleCaesars.com or call 800-553-5776
Join the fastest growing pizza
chain in America!*
Our footprint fits your space.
Non-traditional concepts available.
*Based on 2013 store growth. ©2014 LCE, Inc. 45494
OPPORTUNITY IS KNOCKING!
GET YOUR FOOT IN THE DOOR BEFORE IT CLOSES!
45494_pd_FootInDoor_8x11_4c_FD.indd 1 7/15/14 2:43 PM
Franchising USA
FRANCHISES WITH BENEFITS:
top 4 reasons to “own Your own”
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Tariq Farid, Founder and CEO, Edible Arrangements
It is no secret that I am a huge fan of the franchising concept. Why? because the franchising model provides the best of both worlds for franchisee and franchisor. The franchisee gets resources, support and structure with individual owner freedom. The franchisor also benefits: the company is able to grow stronger and better due to the local knowledge and community engagement of local store owners. After all, franchisees are small business owners who know their communities better than any corporate headquarters ever could!
So, whether you are an aspiring entrepreneur who dreams of owning your own small business, a young college graduate, a “corporate refugee” looking for change or a retiree looking for a great “second act,” franchising offers a great opportunity. Here are my top four reasons to consider pursuing your small business dreams with a franchise - all based on my experience with growing one Edible Arrangements® store into 1,200 in just 15 years.
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Tariq Farid
1 Franchisees are part of the group of small businesses
that truly turn the wheels of our economy. Between 2001 and 2009, not one single Edible Arrangements® store closed. Why? Because the stores are owned by franchisees. When times get tough, franchise owners get innovative. They reinvent how they do things, they reorganize. They pay themselves less for a while if it’s necessary. They are invested and care, and they are not going down easily! They come through hard economic times stronger as a result of their dedication. On the other hand, company-owned stores are at the whim of the corporate office. If profits are down - sometimes even slightly - company-owned stores will be shut down to improve the bottom line, rather than toughing it out. Between 2007 and 2009, at the peak of the financial crisis, the employment rate among all U.S. businesses dropped 4.2 percent. For U.S. franchise businesses, that number was significantly less, only 2.4 percent.
2 Franchises allow owners to bring together passion and
commitment while providing the leeway to best serve local customers. Edible Arrangements® provides all advertising, marketing, technology and employee training materials needed
“As quickly as a product or service becomes popular, some savvy businessperson will create a
company around that product or service.”
to ensure a uniform presence of our brand around the world. With these organizational tools in hand, Edible Arrangements’® franchisees are encouraged to do creative local promotions and advertising and, in particular, to engage in their local communities as they see fit. After all, as local store owners, they live there and know best what needs and opportunities exist to make a splash locally. And they do! Our franchisees are passionate, dedicated and know which small touches will best serve their local communities.
3 Franchises are the “next frontier” in innovation!
Most people are very familiar with food and convenience store franchises. These great businesses are in all of our neighborhoods. However, if you want to do something innovative and fresh, franchising is still an option for you!
As quickly as a product or service becomes popular, some savvy businessperson will create a company around that product or service and often see its potential as a franchise. This gives you the opportunity to get in on the ground floor of the next emerging trend, whether it’s a “green” business that recycles vegetable oil such as Recóleo, mobile video game birthday parties such as Mobile Gaming Revolution or even a Beef Jerky Outlet, there are plenty of creative options out there. There is no limit to the opportunities available.
4 Franchise growth is outpacing other industry
growth!
Since the recession, franchise business growth has exceeded that of other businesses. The franchising industry is also adding jobs to the economy at a faster pace than other businesses: franchise job growth was a 3.1 percent for the most recent year; compared to 2.1 percent for all businesses. According to IHS Global Insight’s research, the number of franchise establishments in the United States is expected to increase by 1.7 percent by the end of the year. I don’t know for sure, but I bet this growth has something to do with the power of the franchising model: the passion, commitment and local knowledge of the small business owner, the franchisee.
Tariq Farid is the Founder and CEO
of Edible Arrangements. The company
began in 1999 with one small store in
East Haven, Connecticut. Through
franchising, the company has grown
to 1,200 stores in 14 countries and
territories in just 15 years. Farid is a
champion of the franchising model as
a great way to grow a large business,
but also firmly believes becoming a
franchisee is pathway for successful
small business ownership.
For more information:
Website: www.ediblearrangments.com
Franchising USA
Meineke car care centers
Meineke car care centers first opened in 1972 and has been franchising ever since. The company is dedicated to growing its brand and, in fact, Meineke’s senior vice president of franchise development, Dave Schaefers, was recently in vancouver, bc to do just that.
Currently, Meineke has just under 1,000 franchises, but Schaefers said the company, which is part of the Driven Brands family of automotive companies, could easily double its number of franchises.
Meineke’s current locations include 48 of the 50 States - Hawaii and Vermont being the only ones the brand is not in - parts of Canada and Mexico.
The company has 25 “hot markets” that it is looking to grow in based on population and volume of cars, including Los Angeles, Dallas and Miami.
complete careMeineke’s main product and service is complete car care, specializing in
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“Meineke’s main product and service is complete car care, specializing in brakes, oil
change, exhaust and diagnostic services.”
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Dave Schaefers
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brakes, oil change, exhaust and diagnostic services.
Because a franchisee would be dealing with employees and dealing with one of their customers’ major life investments, the type of person who would be a good fit for a Meineke franchise, Schaefers said, is someone who likes dealing with people and who wants to be hands on with running their business.
“Our industry is very much a people-person industry,” Schaefers said during an interview from Vancouver. “It’s got to be someone with the capability to: a) follow a system and b) understand that you need to have a sense of urgency and a sense of quality of the work that you’re providing.”
With the way technology has changed and put more power into the hands of consumers, the industry has changed from being a transaction-based industry to a relationship-based industry,” Schaefers said. He speaks from experience, having been a franchisee of ten Meineke stores on his way to his executive position.
“Franchisees have to care about how their store looks, how the phone is answered, how their employees look and how they act and treat the customers,” Schaefers outlined.
“You need someone who really cares about giving the brand experience,” he added.
Schaefers said there is a need for this service because even though the industry is worth $320 billion, there is actually over $600 billion of un-serviced repairs every year, meaning when a vehicle is taken in to fix a problem, only a portion of the work it requires is actually done. There is usually much more work on the vehicle that needs to be done but that isn’t performed.
“It’s great because it’s a destination
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business,” Schaefers said. “People come to us and if you do a good job, they come back again.”
customer educationWhat differentiates Meineke from the competition in an industry where virtually all companies are offering similar products and services is that Meineke actively tries to educate the customer about why they do the repairs they do.
“I think it builds trust and when you build trust you typically end up with very loyal customers, so that’s the operating method that our franchisees fall under and I think that differentiates us a good deal from the competition,” Schaefers said.
Meineke technicians inspect the vehicles, assess them, make an estimate and present what they find to the customer and let the customer know what needs to be fixed and in what priority. Customers are free to make appointments for later if they cannot get the service done that day.
“The more you are able to educate a customer about what they need and don’t need, the better off you’ll be with that customer,” Schaefers explained.
comprehensive TrainingFranchisees are given an initial two and half week training course in Charlotte, NC, but the company also has Franchise Business Consultants located throughout the country who perform routine visits with franchisees. And, Meineke being what Schaefers calls a “data driven company,” it also does a lot of electronic communications with franchisees.
An example of that would be Meineke’s Dealer Access system, an online hub where franchisees can pull up information about all of Meineke’s fleet accounts, all of its training materials, company news, and market research data.
“There are lots of tools for franchisees,” he said.
And, the company is constantly trying to improve itself. Currently, Meineke is testing how phones at the various franchises are answered, giving franchisees the opportunity to grade themselves on how well they convince customers to come into the franchise.
Lastly, Meineke also has their national warranty program, meaning if a vehicle is serviced in one part of the country at a franchise and it breaks down in another part of the country, the warranty is still good. That also works across international borders.
With that kind of active expansion going on, there is plenty of room in Meineke for more people-person franchisees.
For more information visit: www.meinekefranchise.com
Meineke car care centers
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“The more you are able to educate a customer about what they need and don’t need, the better
off you’ll be with that customer.”
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I began my journey with Sherpa Kids wanting to do something worthwhile in my community. I’m not a salesperson but I love talking to Principals and Governing Council members about Sherpa Kids.
Sherpa Kids will work and engage with all stakeholders to ensure continuous learning that meets children’s needs. We pride ourselves on creating a nurturing and caring environment for the care of your school-aged children. We do this through a structured and well-balanced program in before, after school and vacation care services.Become a Sherpa Kids Country Master Franchisee and make an investment on two levels.Your new life will be rewarding financially and personally as you help school communities and franchisees achieve their business and lifestyle goals.Each member of the Sherpa Kids Franchise System has an important role to play.The success of every individual Franchise strengthens the Sherpa Kids brand. A growing Franchise System means greater marketing and advertising power, more brand awareness, higher market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies.Already operating in 4 countries – Australia, New Zealand, South Africa, England and soon to be Ireland.
Enquire about international business opportunities with Sherpa KidsPhone Vicki Prout on +61 439 803 078 or email [email protected]
www.sherpa-kids.com
Sherpa Kids will work and engage with all stakeholders to ensure continuous learning that meets children’s needs. We pride ourselves on creating a nurturing and caring environment for the care of your school-aged children. We do this through a structured and well-balanced program in before, after school and vacation care services.Become a Sherpa Kids Country Master Franchisee and make an investment on two levels.Your new life will be rewarding financially and personally as you help school communities and franchisees achieve their business and lifestyle goals.Each member of the Sherpa Kids Franchise System has an important role to play.The success of every individual Franchise strengthens the Sherpa Kids brand. A growing Franchise System means greater marketing and advertising power, more brand awareness, higher market penetration, new and improved systems, and more team members to share knowledge, ideas and strategies.Already operating in 4 countries – Australia, New Zealand, South Africa, England and coming soon to Ireland and Canada.
Franchising USA
u.s. francHise industrY Grows 3.8% in four Years
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Jeff Lefler, CEO, FranchiseGrade.com
After extensive analysis of the U.S. franchise industry from 2010 to 2014, we concluded that, based on the performance of 1,695 companies that operate franchise systems in the United States, the franchise industry grew by 3.8 percent. This was based on data collected from Franchise Disclosure Documents and compiled into our Franchise Industry Report.
We are excited to see how well the franchise industry has performed coming out of the recession. Our analysis uncovered the following key findings that were contributing factors to this growth:
135,289 New Franchised outlets openedWe discovered that two different points of analysis for outlet growth create different outcomes:
1. Beginning 2013 franchised outlets open minus beginning 2010 franchised outlets open showed a net growth of 15,506 outlets.
2. Outlets opened minus terminations, non-renewals, reacquired and ceased operations showed a net growth of 16,644 outlets.
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In a number of instances, we found that Item 20 data differed from year to year. For example: In some franchise systems, the number of outlets at the end of one year did not match the number of outlets at the beginning of the following year, or the number of outlets opened minus terminations, non-renewals, reacquired and ceased operations did not equal the net growth in that year.
9.9 Percent yearly Franchisee Turnover rate (FTr)This is one of the most interesting findings we uncovered in our analysis. Over 135,000 new franchised outlets were opened, while a combined 118,000 outlets were closed or reacquired and an additional 46,000 outlets were transferred.
Between 2010 and 2014 the average Franchise Turnover Rate was 9.9 percent per year. The scope of the FTR could be affected by a number of factors such as the financial impact of the recession, expiration of initial franchise agreement or renewal terms, or unhealthy franchise systems. No matter the reason, this Franchisee Turnover Rate was higher than expected and was one of the most significant findings in our analysis.
We concluded that the while the industry has experienced steady growth, there should be some concern about the yearly FTR. Further analysis will help us understand the contributing factors.
$59 billion Franchisee InvestmentsWithin the Sample, there were a total of 135,289 new franchised outlets opened during the four year period for a combined total of $59.4B in new franchisee investments.
Between 2010 and 2014, based on Item 20 data, there were:
• Outlets Opened: 135,289
• Terminations: 40,113
• Non-renewals: 11,997
• Reacquired by the Franchisor: 8,431
• Ceased Operations: 58,104
• Transfers: 46,187
The above results could be attributed in part to the effects of the great recession whereby many businesses failed to survive. The franchise industry may still be feeling the impact of that pressure.
A total of $3.07B in initial franchise fees were collected between 2010 and 2014. Commercial & Residential Services franchise systems led all sectors, collecting a total of $621M in franchise fees.
This does not include calculations of franchise fees on transfers within the 2010 to 2014 period.
Based on our analysis of Item 7 disclosures within the FDD Sample, we determined that franchisees invested $59.4B into the franchise industry between 2010 and 2014 based on disclosed average initial investments. This was calculated by taking the number of new outlets opened by each system multiplied by their average investment as disclosed within Item 7. This does not include any fees or investments from, or required by, transfers.
Moving ForwardOur analysis indicates that we can expect consistent growth over the next year. Specifically:
• We expect to see the Personal Services sector lead growth as both Children’s Services and Home Care continue to outperform the industry.
• We are looking for continued trends in the data related to Franchisee Turnover Rates to determine causation of FTR scope.
• As additional Franchise Disclosure
“between 2010 and 2014 the average Franchise Turnover rate was 9.9 percent per year.”
Documents are collected, we expect to see a drop in industry averages based on a number of factors including Item 19 FPR rates, litigation and other averages.
• As additional smaller franchise systems are incorporated into our sample in the future, these systems have less activity leading to less variability within their FDDs and analysis.
The information we have shared here is but a snapshot of the information we have included in our latest Franchise Industry Report.
To learn more and to order the full report, visit us at www.FranchiseGrade.com.
As the CEO of FranchiseGrade.com, Jeff Lefler understands that there is no Silver Bullet or sure-fire, simple way to pick a guaranteed franchise system winner. However, by using a little science and a lot of hard work, Jeff and the team at FranchiseGrade.com have developed a sophisticated research, analysis and comparison model to help potential investors and existing Franchisees assess a realistic value for any franchise system relative to others. It’s called a Franchise Grade.
With over fifteen years of small business experience and ten working in franchising as a multi-unit Franchisee, consultant and Franchisee Association President, Jeff has a good understanding of the level of hard work, dedication and commitment that drives a successful franchise system. As part of his ongoing involvement with the industry, Jeff also served as a Member of the Strategic Committee of the International Association of Franchisees and Dealers.
Jeff Lefler
Franchising USA
Andy Roe, General Manager, SurePayroll
A new survey gives a fairly solid salary benchmark to distinguish whether workers are happy or unhappy with their incomes.
Because salaries have been stagnant during the economic recovery, the number of workers who feel unhappy with their pay is inching upward. Nearly two-thirds of American workers (65 percent) do not
earn their desired salary, according to the new survey by CareerBuilder.
The demarcation line appears to be $75,000. Those who earn under that figure tend to be unhappy with their pay and those who earn above that line are more satisfied.
“The survey supports past research suggesting that the $75,000 threshold is particularly significant, as this level allows households in most areas of the country to not only get by, but enjoy an ideal lifestyle and a secure future,” said Rosemary Haefner, vice president of human
resources at CareerBuilder. “Interestingly, what workers would ultimately like to earn does not necessarily factor into what they need for a successful career.”
What about franchise owners, though? Their satisfaction quotient is probably much less tied to a specific income. Those who run their own business tend to have varied motives, with money only being one of them.
One of the nation’s leading experts on small business and entrepreneurship, Jim Blasingame, writing in Forbes, cautioned
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“If you became a small business owner to find financial success, good for you; as a capitalist, I admire that motivation. But if you think getting rich will make you happy, get your umbrella out because I’m going to rain on that parade with these two truths:
1. Wealth only provides options, it does not guarantee happiness.
2. If you can’t be happy without wealth, you aren’t likely to be happy with it.”
“you’ll know you’re achieving that growth if you look forward to coming in every day and are optimistic about
the future of your franchise and your role within it.”
Blasingame’s advice is universal to both business owners and workers. If we all followed it, there would be more satisfied people in the workplace.
The Thrill of leadershipIf you’ve decided to take on the task of running a franchise, it’s likely that you’re a natural leader. You don’t see the responsibility as a burden, but rather an inspiring challenge.
For many leaders, there is a certain thrill attached to bringing together a group of people from varying background and turning them into a cohesive unit. This requires an ability to train and teach people, to be firm when necessary, as well as offer support and encouragement.
If you can get your staff to come to work every day and take pride in what they do, you’ll feel the rush of successful leadership. This is one of the most rewarding aspects of running a business.
The relationships you develop can’t be reflected in a paycheck.
Success is Happiness Ultimately, your measure of success is going to be your own personal happiness, and all that entails. It seems like an abstract concept, but the more you think about it, the more tangible it becomes.
Part of it is individual growth. Are you learning more from what you’re doing? Are you becoming smarter about business, people and service? Yes, you’re trying to grow a business, but you’re also trying to grow as a person.
You’ll know you’re achieving that growth if you look forward to coming in every day and are optimistic about the future of your
franchise and your role within it.
The other part of this mystical concept called happiness is about the people around you. Your family, friends and colleagues.
If you can make the business profitable, while still connecting with employees and most importantly, being that positive presence in your family’s life, you’re well on your way.
Andy Roe is the General Manager of SurePayroll, Inc., http://www.surepayroll.com, a Paychex Company. SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with1-10 employees.
You can follow Andy on Twitter @AndrewSRoe.
Andy Roe
DEFiNiNg SUCCESS AS A FRANCHiSE OWNER
Franchising USA Franchising USA
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