Multi-Unit Franchisee Magazine - Issue II, 2024

Franchisee Multi-Unit

Mentoring & coaching to win

Build culture to engage your team 2024 Multi-Brand 50 rankings

MVP JOSEPH OMOBOGIE

FROM NIGERIA TO THE AMERICAN DREAM

Now’s the time to get your claws on a family-friendly, seafood boil franchise that’s cracked the code on profitability and bold Asian-Cajun flavors guests love.

As the conversion experts in second generation restaurant sites, you’ll shell out less on your buildout while dramatically shortening the time to start bringing in the clams.

menu and proprietary flavors drive repeat business

category in a crowded food segment

Median Initial Investment***

faster with 2nd gen locat

• Semi-Absentee: No on-site staff

• Multi-unit expansion available nationwide

• Recession Resistant

"People are really embracing this concept in the salon industry and feeling confident bringing their business to MY SALON Suite." MY SALON Suite's franchise model has been a great way for me to learn, adopt and improve the proprietary processes, products and best practices. There's very valuable know-how and support for each step of the business from the start and continued through the growth." Alpesh Trivedi, Franchisee Multi-unit franchisee in Michigan and Illinois

44 2024 MUFC

It was another record-setting year for both franchisee and exhibitor attendance at the annual MultiUnit Franchising Conference in Las Vegas.

52 A TEAM APPROACH

Multi-unit operators rely on mentoring and coaching strategies to grow their skills, build their teams, and strengthen their businesses.

56 WIN THE WORKPLACE

Operators take steps to establish a winning culture that engages employees and incentivizes them to provide stellar customer service.

franchisees by number of units and their brands

multi-unit franchisees gather in Vegas

and coaches point the way

franchisees build winning cultures

program aims to drive growth

Our Team

CHAIRMAN

Gary Gardner

CEO

Therese Thilgen

EXECUTIVE VP OPERATIONS

Sue Logan

EVP, CHIEF CONTENT OFFICER

Diane Phibbs

VP BUSINESS DEVELOPMENT

Barbara Yelmene

BUSINESS DEVELOPMENT EXECUTIVES

Kry stal Acre Jeff Katis

Judy Reichman

EXECUTIVE EDITOR

Kerr y Pipes

MANAGING EDITOR

M. Scott Morris

ASSOCIATE EDITOR

Eddy Goldberg

CREATIVE DIRECTOR

Cindy Cruz

DIRECTOR OF TECHNOLOGY

Benjamin Foley

WEB DEVELOPER

Don Rush

WEB PRODUCTION ASSISTANTS

Esther Foley Juliana Foley

DIRECTOR, EVENT OPERATIONS

Katy Coutts

SENIOR SUPPORT MANAGER

Sharon Wilkinson

SENIOR SUPPORT COORDINATOR

FRANCHISEE LIAISON

Leticia Pascal

SENIOR GRAPHIC DESIGNER

Michael Llantin

VIDEO PRODUCTION MANAGER

Greg Del Bene

EVENT OPERATIONS MANAGER

Chelsea Weitzman

EVENT PRODUCTION COORDINATOR

Lillian Swenor

CONTRIBUTING EDITORS

Mary Lou Atkins Tori Wagner

John DiJulius Matthew Haller

Barbara Nuss Carol M. Schleif

Paul Wilbur

CONTRIBUTING

Bond

Colleen McMillar

Gaylor

Multi-Unit Franchising Conference Reaches New Heights—Again

The

recent Multi-Unit Franchising Conference in Las Vegas was a resounding success. The annual gathering has always set a standard for learning and networking, and this year’s event was no exception.

Dynamic exhibit hall

The heart of the conference—the exhibit hall— was a bustling hub of activity. It was not just a showcase of opportunities, but a place for franchisees to explore new ideas and forge important connections. The energy here was palpable, reflecting the eagerness of franchisees to grow and innovate.

Inspirational speakers

The conference was elevated by speakers who brought valuable insights to the forefront. Jim Collins’ presentation on novel business growth strategies resonated deeply, sparking ideas that many have already started to implement.

Chef Jeff Henderson’s story was a highlight, serving as a powerful testament to perseverance and commitment. His journey from humble beginnings to culinary success was an inspiring and poignant reminder of the resilience needed in the franchising world.

In addition, the breakout sessions offered a treasure trove of knowledge. They delved into pertinent topics, ranging from leveraging new technologies for business growth to building infrastructure to support expansion to creating business plans to prepare for a potential sale. Industry leaders offered in-depth discussions, lessons learned, and practical advice relevant to today’s franchise landscape.

Unparalleled networking

Networking is the conference’s cornerstone, and this year was no exception. The event offered a rich environment for franchisees to connect, share experiences, and learn from one another. The diversity of new attendees was particularly noteworthy, signaling a robust future for our industry.

Social events, including the golf tournament at Arroyo Golf Club, the Chairman’s Pool Party, and the franchisee opening event at Carmine’s Restaurant, were more than just fun gatherings. They were vital for building relationships, and every conversation presented a chance to learn and grow.

Plan for 2025

The Multi-Unit Franchising Conference is a catalyst for growth and inspiration. This year’s conference has set a new benchmark for excellence. It has been an empowering experience, and as we look ahead to 2025, we carry with us the knowledge, inspiration, and connections that will continue to drive our success in the dynamic and ever-evolving realm of franchising.

As we bid farewell to this year’s event, we look forward to the next one with great anticipation. Mark your calendars for March 25–28, 2025, at Caesars Forum. It promises to bring more enriching experiences, learning opportunities, and unparalleled networking.

Be part of a brand and community built through earned experience with a culture of strong leadership, innovation, operations, and growth.

We have opportunities in select, prime markets and non-traditional venues for qualified restaurant operators and developers with varied incentives for development.*

• Part of Dine Brands Global, a publicly traded company and one of the largest full-service restaurant groups in the U.S.

• An iconic brand with an integrated franchise support system—operations, training, new restaurant openings, marketing, site selection, design, food innovation, and technology*

• Strong franchisee collaboration and feedback in various corporate committees to keep the brand relevant

A restaurant company unlike any other.

The Inspire portfolio is a powerful combination of iconic brands that creates one of the most innovative opportunities in the restaurant space. Inspire o ers franchise owners access to a diverse portfolio of beloved, globally recognized brands covering all day parts. With more than 32,650 locations across 57 global markets, Inspire provides tremendous runway for growth.

$32.5B Global System Sales

$9B Global Digital Sales

32,650+ Global Restaurants 410M Global Guests

Learn more about franchise opportunities at inspirebrands.com/franchising

2,900+ Franchisees

57 Global Markets

CELEBRATING

FRANCHISE EXCELLENCE:

THE 2024 MULTI - UNIT FRANCHISEE MVP AWARDS!

Written by KERRY PIPES

Las Vegas glittered brightly as Multi-Unit Franchisee magazine revealed its prestigious MVP (Most Valuable Performer) Award winners. These outstanding individuals were honored on stage at the Multi-Unit Franchising Conference in March and recognized for their exceptional contributions to the industry.

This year’s MVPs represent the pinnacle of multiunit franchising. They’re not just successful business leaders, but also innovators, community advocates, and philanthropic champions. These franchisees exemplify the very best of the industry by growing their businesses, brands, and impacts on the world.

Each MVP has a unique journey to success. Get ready to delve into their inspiring stories of hard work, resilience, and triumph. From the books

JIM

that shaped their visions to their innovative management styles, you’ll discover the secrets behind their achievements, including how they tackled the pandemic’s challenges and adapted to the aftermath.

This year’s MVPs are more than just award winners; they’re an inspiration for everyone in franchising. Through their stories, you’ll gain valuable insights into hiring and training practices, discover strategies for navigating industry shifts, and get a glimpse into the future of franchising.

The 2024 Multi-Unit Franchisee MVP Awards showcase the exceptional individuals who elevate franchising. Their dedication and innovation are testaments to the true value of this dynamic industry.

KADIRALI "ALI" CHUNARA

JOSEPH OMOBOGIE

American Dream MVP

CHESTON

McLAIN

KEEGAN TRUDGEN (AND TIM LOHSE)

FASTEST GROWING AUTO STYLING FRANCHISE!

A PASSION FOR FOOD SERVICE

Jim Balis is the 2024 Multi-Brand Leadership MVP (Most Valuable Performer) for achieving brand leadership with multiple brands.

Written by GINNY GAYLOR

JIM BALIS

Jim Balis started in the restaurant industry when he worked as a dishwasher in high school. In college, he ran a business providing food backstage for performers. During those early years, he developed a deep and abiding appreciation for the food service industry, and he continues to excel at it as the CEO of Sizzling Platter.

His love of food came from his mom and her parents. “My mom was an excellent cook, and I helped her quite a bit,” he recalls. “She was really into food, and she would save up, and we would go to good restaurants.”

His mom’s parents traveled a great deal and were also foodies. “They would go into the city from Brooklyn and try the latest and greatest restaurant,” Balis says. His dishwashing job was at their favorite restaurant. “Back then, I would sit during breaks with the owner, and once I told her, ‘You are not charging enough for drinks,’” he says. The owner was interested in his opinion, and even though Balis was still a teenager, she sat with him and talked about the business aspects of running a restaurant.

As an adult, Balis formed a restaurant management group. Unlike typical consulting groups, his did assessments of restaurants and then helped them to improve operations and profitability. “We only got paid if they improved,” he explains. “They loved that.”

At Sizzling Platter, he and his team oversee a large portfolio with multiple brands, and they are poised for further growth. “We want to create unparalleled experiences for our team members and guests of our restaurants while driving strong financial performance,” Balis says. “At the same time, we’re trying to become the world’s premier franchise platform. But having our guests and team members be the first on that list is intentional. We spent a lot of time focusing on that.”

Balis brings a wide range of experience to the food industry. He knows what it means to be a frontline worker, an owner, and a multiunit franchisee. All of that history in the business has made him a well-rounded operator. “I’ve had all the perspectives,” he says, “and that has really helped me.”

MVP QUESTIONS

Why do you think you were recognized with this award? Leadership and focus on team members, culture, and people at all levels.

How have you raised the bar in your own company? Through our revised mission statement: “We provide unparalleled

" VALUING OUR TEAM MEMBERS FIRST AND FOREMOST. FOSTERING AN ENVIRONMENT OF PERSONAL AND PROFESSIONAL GROWTH. COLLABORATION, FACT-BASED DECISION-MAKING, TRUTH SEEKING, AND SHARING THE SUCCESS AND WEALTH OF THE COMPANY."

experiences for our team members, guests, and brands while driving strong financial performance to become the world’s premier franchise platform.”

What core values do you think helped you win this award? GRIT: growth, integrity, respect, and teamwork (our core values).

How important is community involvement to you and your company? Very—we can share all we do at Sizzling Platter. Separately, I started FeedUSToday, which is now in year four. We try to feed more than 150,000 people on a single day.

What leadership qualities are most important to you and your company? Valuing our team members first and foremost. Fostering an environment of personal and professional growth. Collaboration, fact-based decision-making, truth seeking, and sharing the success and wealth of the company.

PERSONAL

Key accomplishments: Raising two wonderful children, helping my wife start two very successful businesses, opening two independent restaurants, and starting my own advisory firm.

Next big goal: Spend less time working and more time doing hobbies I enjoy.

Hardest lesson learned: It’s okay to take days off from email while on vacation.

Best advice you ever got: Don’t be frustrated by what you can’t control.

LISTEN FIRST, PROCESS INFORMATION SECOND, COLLABORATE ON AN ACTION PLAN THIRD, HOLD YOURSELF ACCOUNTABLE FOURTH, AND SHARE YOUR SUCCESS FIFTH."

Favorite book: Too many to name one. The last one I read was Killers of the Flower Moon: The Osage Murders and the Birth of the FBI by David Grann.

What’s your passion in business? Having a positive impact on people’s lives.

MANAGEMENT

Business philosophy: Listen first, process information second, collaborate on an action plan third, hold yourself accountable fourth, and share your success fifth.

Management method or style: Collaborative, fact based, truth seeking, and constructive.

Greatest challenge: Starting an advisory firm from scratch.

How close are you to operations? Very—I love visiting stores, spending time back of house, and going through training programs.

How do you hire and fire, train and retain? Hire: Zoom interview, in-person interview, have candidate meet our team/assess culture fit, ask for a case study, and then collaborate with the team on decision to hire. Fire: It is rare for someone I fire to be surprised. Train and retain: Training is often the most under-invested department of our business.

COVID-19

What have been the biggest impacts of Covid-19 on your business? It certainly varies by brand. In Jamba, we saw a big uptick from the government subsidies, but when they expired, we tried to maintain the momentum. In Red Robin, it was trying to retain off-premises use cases that skyrocketed during Covid. For all brands, it has been managing the new people dynamic post-Covid.

BOTTOM LINE

Annual revenue: $1.2 billion.

2024 goals: Overachieve our mission statement.

Growth meter: How do you measure your growth? Unit count, sales, EBITDA, retention, and employee sentiment.

Vision meter: Where do you want to be in five years? 10 years? Be the employer of choice as one of the top five largest franchise operations in the world.

What kind of exit strategy do you have in place? Either sale to private equity or IPO. 

1

MOVING FORWARD

Al Bhakta is the Mega-Growth Leadership MVP (Most Valuable Performer) for achieving excellence in growth and expansion.

Written by GINNY GAYLOR

Al Bhakta had the entrepreneurial itch from a young age, and his plans solidified in college. He and five friends from the University of Texas at Dallas were looking for a place for underage students to hang out, and they stumbled upon a business idea and a lifelong partnership.

Bhakta credits the group’s bond to the fact that they were all working in college. “We all had jobs to help put us through school,” he recalls. The group saw a need in the marketplace based on their own search for an underage pool hall. “We wanted something to do without alcohol, a place to play pool and other games,” he says. “That was the idea at the time.” The group started their pool hall and operated it through college. They sold it after graduation and applied what they’d learned to their franchise restaurant business.

Bhakta has been in the restaurant industry for 22 years and has been on both the franchisor and franchisee sides. As founding principal for CMG Companies, he and his team operate more than 400 units in more than two dozen states. CMG’s holdings include KFC, Taco Bell, Sonic Drive-In, Little Caesars, Rent-ACenter, and Ace Hardware. He has previously franchised with hotel concepts, such as IHG, Marriott, and Hilton, and served as the chief executive officer of Genghis Grill from 2004 to 2014.

AL BHAKTA

CMG has grown organically and through acquisitions for each of the brands they are involved in. Bhakta and his team tend to take underperforming units and turn them around, transforming them into locations the brand can take pride in. CMG plans to continue to grow and diversify with other brands. CMG Companies ranked No. 15 on this year’s Mega 99 list of largest franchisees in Multi-Unit Franchisee magazine. This issue’s edition of the Multi-Brand 50 lists CMG at No. 12.

Today, five of the six original pool hall business operators still live around the Dallas-Fort

"TRY TO LEAD BY EXAMPLE ALWAYS. HOPEFULLY, MY WORK ETHIC AND PERSISTENCE ARE THINGS MY PARTNERS AND TEAM MEMBERS APPRECIATE ABOUT ME."

Worth area. In addition to working together, the partners and their families take vacations together. “Everyone gets along, and it’s been a good run,” Bhakta says.

MVP QUESTIONS

Why do you think you were recognized with this award? Thanks to the nominators for recognizing CMG for more than two decades in the franchise world.

How have you raised the bar in your own company? Try to lead by example always. Hopefully, my work ethic and persistence are things my partners and team members appreciate about me.

What innovations have you created and used to build your company? I wish I could tell you we have done something innovative. Slow and steady and compounding efforts have helped build our company.

What core values do you think helped you win this award? Our core values: One for all, all for one; respect … everything, everyone, always; work hard, play hard; check all egos at the door; what comes around goes around; karma is a _ _ _ _ _ !; and play to win—without offense, no fun, but defense wins championships.

How important is community involvement to you and your company? The restaurants and retail franchised units are all local businesses. We try to stay involved as much as we can in the local communities. CMG also has a nonprofit called Chalak Mitra Life that we use to contribute to various charitable causes.

What leadership qualities are most important to you and your company? Honesty, integrity, and a passion to learn and grow.

PERSONAL

Formative influences/events: Meeting my business partners in college and becoming best friends first and then building the foundations of CMG together ever since.

Next big goal: $100 million in EBITDA.

Best advice you ever got: Time is your most valuable asset. Don’t ever forget to value your time.

Favorite book: Anything nonfiction, primarily focused on autobiographies.

What’s your passion in business? Driving the culture, building teams, keeping energy high, and filling the boat (taking people with us)!

MANAGEMENT

Business philosophy: Outhustling and outworking everyone tends to deliver positive results compounded over time.

Management method or style: Fairly democratic: gather information, share information, and vote on the big decisions. Try to give everyone a say in the major decisions.

Greatest challenge: Too many to name. The key is to get back up and keep fighting.

How close are you to operations? I stay fairly connected with the leadership teams of the portfolios I oversee, and each of the partners does the same with the other portfolio companies.

How do you hire and fire, train and retain? Hire slow, fire fast. Training and retention will always be something that we work on perpetually. There are no silver bullets.

COVID-19

What have been the biggest impacts of Covid-19 on your business? Initially, in March 2020, it was scary having the responsi-

bility of 7,000 team members on our shoulders. We just put our heads down and focused on overcoming the challenges that came along. Having self-belief that together we could get through it proved to be very effective, and most of our businesses came out stronger as a result.

BOTTOM LINE

Annual revenue: Approximately $650 million.

2024 goals: Getting closer to $100 million in EBITDA and diversifying into other franchise brands.

Growth meter: How do you measure your growth? We tend to focus on EBITDA growth versus number of units as a measurement of growth.

Vision meter: Where do you want to be in five years? 10 years? We tend to focus on shorter milestone periods as business changes fast. We like to do annual operating plans and set annual goals every year, ensuring we are adjusting to real-time ebbs and flows. Our CMG overall vision is “One Team. Big Dreams!”

What are you doing to take care of your employees? Our leaders either have equity or profit sharing in our businesses. This has been the biggest reason for our overall success. What kind of exit strategy do you have in place? We tend to go into the various franchise businesses with legacy in mind. We like the long-term nature of the franchise portfolios we own. 

"OUTHUSTLING AND OUTWORKING EVERYONE TENDS TO DELIVER POSITIVE RESULTS COMPOUNDED OVER TIME."

A PURPOSEFUL LIFE

Kadirali “Ali” Chunara is the Noble Cause MVP (Most Valuable Performer) for his organization’s passionate, unwavering support for those in need. His son, Shehzaan Chunara, conducted an interview with Multi-Unit Franchisee magazine on behalf of his father.

Written by GINNY GAYLOR

KADIRALI “ALI”

CHUNARA

TITLE

President

COMPANY

Chunara Group of Companies

NO. OF UNITS

50 Dunkin’, 10 Take 5 Oil Change, 2

Church’s Texas Chicken, 7 Popeyes

Louisiana Kitchen, 10 TGI Fridays, 7 Blaze

Pizza, 9 My Eyelab, 5 Kale Me Crazy, 62 Checkers & Rally’s, 4 BurgerFi, 3 Nothing Bundt Cakes, 1 Jimmy John’s AGE

While growing up, Shehzaan Chunara rode around with his father, Kadirali “Ali” Chunara, as he grew and developed his franchise business. His father came to the U.S. in the 1980s and worked multiple QSR jobs until buying his own Blimpie franchise. “He got into franchising because it was the easiest way to climb the social ladder in this country, even without an education,” Chunara explains.

From his earliest days in the business, Ali Chunara believed it was important to put in long hours to achieve success. During one sixmonth period, he worked 18 hours a day for seven days a week without taking a day off. “He put in a lot of work in the beginning,” Chunara says. “He started to achieve his first bit of success in 2004. He was able to sign the agreement to buy Checkers. I think it was 10 corporate Checkers locations, and he signed a development agreement with them.”

Success for his father wasn’t about buying fancy cars or flying first class. “He really believes in giving back,” Chunara says. His father also offers others the chance to feel the joy of giving. Each year, he hosts a fundraiser for the Aga Khan Foundation at his restaurants. He matches every dollar donated by customers as well as by vendors, franchisors, bankers, and partners. “That allows us to raise around $300,000 a year for the foundation,” Chunara says.

The money goes to developing countries. It’s used for microfinance programs and poverty alleviation. The funds also help educate and feed children. The Aga Khan Foundation has made a difference in the lives of millions of people, especially women and children. “He believes very strongly in helping people,” Chunara says, “and that’s how it’s been for him for a long time.”

Chunara followed his father into the family business and has adopted his father’s approach of serving others. “You can make money doing anything,” he says. “But if you don’t have a purpose, nothing matters.” Chunara’s current purpose revolves around uplifting the company’s partners. “Being part of their lives and being able to change their livelihoods is what I strive to do every day.”

" LEADING BY EXAMPLE —IF THAT MEANS AN OPERATING PARTNER IS GOING TO GET UNDER A CAR TO CHANGE OIL OR FLIP A BURGER, SO BE IT. THEY WILL GARNER MORE RESPECT FROM THEIR RESPECTIVE TEAMS BY SHOWING THAT SUCCESS IS ACHIEVED WITH ALL HANDS ON DECK."

MVP QUESTIONS

Why do you think you were recognized with this award? Because he made it such a big part of his day-to-day job to give back. He doesn’t believe he’s in this business for the money as much as he is for having the opportunity to give back. Franchisors can see that.

How have you raised the bar in your own company? Created a sense of uniformity across the organization and professionalism with how we operate.

What core values do you think helped you win this award? Generosity.

How important is community involvement to you and your company? Very.

What leadership qualities are most important to you and your company? Leading by example—if that means an operating partner is going to get under a car to change oil or flip a burger, so be it. They will garner more respect from their respective teams by showing that success is achieved with all hands on deck.

PERSONAL

Key accomplishments: Starting to invest in private equity funds, building up our family’s real estate portfolio, and signing development agreements with Take 5, Nothing Bundt Cakes, and BurgerFi, some of our newest brand additions to the portfolio.

1 son, 1 daughter

While it is common for franchise restaurants to be passed on in families, Chunara doesn’t plan to do that. “The assets we’ve built up, I plan to donate to the Aga Khan Foundation,” he says. “That also brings me purpose.”

Next big goal: Clean up our restaurant portfolio by eliminating the bottom 10% of assets we own.

Hardest lesson learned: Don’t invest in a brand that is vertically integrated. Don’t grow

in a brand until you have gotten in and had time to allow the executive team to prove their vision to you, and you see some concrete financials as an existing franchisee.

Best advice you ever got: Be patient.

Favorite book: Art of the Deal by Donald Trump.

What’s your passion in business? Being able to give back in the way of foundation donations and helping grow the livelihoods of our operating partners who work with us.

MANAGEMENT

Business philosophy: Feed your people and your business before you expect your business to feed you.

Management method or style: Delegate yet micromanage to an extent.

Greatest challenge: Finding a place to slow down or stop, and being able to say no to an opportunity.

How close are you to operations? We’re not involved in operations at all. We’re in-

volved in building the overall infrastructure for our company and new brand development.

COVID-19

What have been the biggest impacts of Covid-19 on your business? A lot of free money has given us a false sense of optimization surrounding some of our businesses.

BOTTOM LINE

Annual revenue: $250 million-plus.

2024 goals: Continue to grow in some of our new brands, including Blaze, BurgerFi, Nothing Bundt Cakes, and continue to clean up the bottom-performing assets in the rest of the portfolio.

Growth meter: How do you measure your growth? By the number of operating partners we have, helping move them to their next step in life, and of course, bottom-line free cash flow across the network.

Vision meter: Where do you want to be in five years? 10 years? Similar place, maybe more stores but definitely more people who we

" BEING ABLE TO GIVE BACK IN THE WAY OF FOUNDATION DONATIONS AND HELPING GROW THE LIVELIHOODS OF OUR OPERATING PARTNERS WHO WORK WITH US."

can impact and help provide an opportunity to build livelihoods for.

What kind of exit strategy do you have in place? We do not have a specified exit strategy as each partner runs their own grouping of restaurants and decides when it’s time for each of them respectively to exit or expand. 

AN ENDURING PARTNERSHIP

McLain Hoogland is the Single-Brand Leadership MVP (Most Valuable Performer) for achieving leadership with a single brand.

Written by GINNY GAYLOR

Four generations ago, McLain Hoogland’s family got its start in business with an appliance store, but things really took off during the early days of home video rentals.

“My grandfather started Family Video in 1978, and my dad scaled it, growing it from 40 stores to more than 800,” Hoogland says. “It was all privately owned, and he bought all the real estate.” Once the video industry declined, the family converted their holdings into a commercial real estate company, Highland Ventures, which includes the Hoogland Restaurant Group.

The family business began franchising with Marco’s Pizza in 2012. Hoogland, who served two combat tours in the Marines, started working with the brand in 2016. Since then, the company’s relationship with Marco’s has become an enduring partnership.

“One of the reasons why I like Marco’s is because they are also new to franchising,” he says. “We’ve been able to help each other—I’m still learning restaurants, and they were learning scale.”

MVP QUESTIONS

Why do you think you were recognized with this award? I hope that it is for my continued engagement with the brand. My team and I have been instrumental in helping Marco’s continue to grow and improve through technology and operations. It has been a great partnership for more than 10 years at this point. And I think it has only gotten stronger in the past few years. I try to be a leader for the brand, and I hope that Marco’s feels the same.

How have you raised the bar in your own company? We have been trying to use different forms of technology to improve internally. Whether it is implementing a new SDWAN network or partnering with a new applicant tracking platform, we are always looking to use new products to help us become more efficient and faster.

MCLAIN HOOGLAND

Today, Hoogland Restaurant Group is the largest Marco’s Pizza operator in the system with 117 units operating in 22 states. There are plans to grow the unit count by another 20 locations this year. In 2023, comparable samestore sales of their locations experienced a 7.9% lift with a 4.4% increase in orders over 2022. Hoogland is also a member of the Marco’s Independent Franchise Association, which helps people at corporate to better understand what’s happening on the ground.

While the restaurant sector represents a significant portion of the portfolio in personnel terms, the real estate holdings stand out as the cornerstone financially. Despite the scale of operations, Hoogland says the company still operates as a small, family-owned business. Hoogland’s father and brother also help guide the business. They’ll continue steering the ship until the fifth generation of family members is ready to take the helm.

For now, Hoogland is a single-brand operator who prioritizes growth, customer service, and investing in the next generation of workforce leaders.

“We want to always be growing both through total number of locations and people,” he says. “I want to continue to be able to provide a road map for employees to continue to be promoted with more and more opportunity.”

What innovations have you created and used to build your company? Many innovations in our stores have been made possible thanks to Marco’s, and we are lucky to partner with a company that listens in real time to franchisee challenges and adapts new technology and initiatives as a solution. One great example is Marco’s instituting MOMS (Marco’s Order Management System), which seamlessly connects front-of-the-house operations with back-of-the-house cooking.

Other innovations within Hoogland Restaurant Group have involved location selection, digital integration, data analytics, engagement platforms, sustainability initiatives, employee training platforms, and community-centered initiatives.

What core values do you think helped you win this award? Winning this award is a

"I HOPE THAT IT IS FOR MY CONTINUED ENGAGEMENT WITH THE BRAND. MY TEAM AND I HAVE BEEN INSTRUMENTAL IN HELPING MARCO’S CONTINUE TO GROW AND IMPROVE THROUGH TECHNOLOGY AND OPERATIONS."

reflection of my commitment to upholding our core values of hard work, problem spotting/ solving, leading not managing, and having an ownership mentality. These core values collectively define the ethos of Hoogland Restaurant Group and have been instrumental in earning this prestigious recognition.

How important is community involvement to you and your company? Community involvement is integral to Hoogland Restaurant Group as we serve a large number of communities across the country. We are active in 25 different markets in 22 states and also involved in the smaller communities within those 25 larger markets. We continue to work with local schools and community centers, and we hire all of our employees from the local communities as much as we can.

What leadership qualities are most important to you and your company? We value hard work, leading (not managing), and being a problem spotter and solver.

PERSONAL

Key accomplishments: I am the fourth generation of this family to lead Highland Ventures, which includes the Hoogland Restaurant Group. We currently have 117 Marco’s Pizzas with 10 more in development, making us the brand’s largest franchisee. Hoogland Restaurant Group opened Marco’s 300th milestone location, and after growing over time, we recently opened Marco’s milestone 1,200th in January 2024. It was a full-circle moment that truly honors Marco’s incredible growth and how they’ve withstood the test of time.

Next big goal: Hoogland Restaurant Group aims to continue our growth crusade and expand our portfolio by selecting prime territories for expansion, with immediate plans to grow our unit count by 20 in 2024.

Hardest lesson learned: Learning to delegate better—I tended to take everything onto myself. It was hurting the business because I couldn’t handle everything that needed to get done. I had to learn to let go, prioritize, and trust my leaders.

Best advice you ever got: Hire people who are problem-solvers, and your business will be much better. This is something my grandfather always talked about and something I really try and continue to push.

Favorite book: Gates of Fire by Steven Pressfield.

What’s your passion in business? My passion in business has always been solving prob-

lems to make the business more efficient on the basic level. On a high level, it would be the overall growth of the business. There is nothing more fun than growing a business, whether it is with Hoogland Restaurant Group or with one of the other businesses that we run.

MANAGEMENT

Business philosophy: My business philosophy is simple. We want to always be growing both through the total number of locations and people. I want to continue to provide a road map for employees to continue to be promoted with more and more opportunities.

"COLLABORATION IS ANOTHER CORNERSTONE OF MY MANAGEMENT APPROACH. I ENCOURAGE OPEN COMMUNICATION AND TEAMWORK, FOSTERING AN ENVIRONMENT WHERE IDEAS CAN BE SHARED FREELY, AND INNOVATION IS ENCOURAGED."

This will let us grow into more communities where we will be able to have a big effect on the community as a whole, whether it is through connections with local schools or through just overall good customer service.

Management method or style: I believe in having a team that can accomplish any goal through the process of problem spotting and problem-solving. I want to have my team consistently looking to improve on every aspect of the business and have the ability to communicate to any level in our organization. Some of the best ideas have come from our lowest-level employees. I also believe that a business should be built around those who are doing the frontline work. A lot of companies have a separation between the corporate employees and the frontline employees. I believe the two sides should be really close together. I require all of my leaders to spend significant time inside the restaurants and working with the frontline employees.

Collaboration is another cornerstone of my management approach. I encourage open communication and teamwork, fostering an environment where ideas can be shared freely, and innovation is encouraged. This collaborative atmosphere helps identify and leverage the diverse strengths of our team to overcome challenges and capitalize on new opportunities.

Continuous improvement is a personal passion and a business necessity. I am committed to a philosophy of lifelong learning for myself and my organization. We regularly review our processes, results, and strategies to identify areas for improvement. We are always looking for ways to innovate and enhance our efficiency, customer service, and product quality.

Greatest challenge: My greatest challenge is to keep up the growth goals that I have set for myself and my team. My team is constantly pushing to open more locations, and they are the ones who are doing all the work. It takes a lot of time and diligence to find the right locations in the right market, and we are very diligent in site selection. That makes it hard to grow at the speed I would like.

How close are you to operations? I like to stay very close to the operations. I regularly work in the restaurants. I think it is really important for the team members to see consistent leadership and see that the leaders in the company still know how to make an amazing pizza.

I make it a priority to maintain regular communication with our management teams and frontline employees. This is accomplished through site visits, participating in operational reviews, and leveraging technology to stay connected with multiple locations. Being accessible and involved in this way allows me to stay informed about the operational nuances

of our business, which is crucial for making informed strategic decisions.

How do you hire and fire, train and retain? When it comes to hiring, we focus on finding individuals who not only have the necessary skills and experience, but also share our company’s values and vision. The hiring process is thorough, involving multiple stages of interviews to assess both technical abilities and cultural fit. We look for candidates who demonstrate a passion for customer service, a willingness to learn, and a positive attitude toward teamwork and growth. We aim to bring people on board who can contribute to our supportive and ambitious culture, driving the company forward.

Termination of employment is always a last resort and is treated with the utmost seriousness and sensitivity. It occurs only after all other options, such as retraining, reassignment, or performance improvement plans, have been exhausted. Our approach is to ensure the process is fair and respectful. We aim to communicate clearly about the reasons behind the decision and support the individual during the transition.

Training is an ongoing investment in our employees’ growth and the company’s future. We provide comprehensive initial training for all new hires, covering their specific job roles, our company culture, customer service standards, and operational procedures. Beyond this, we offer continuous learning opportu-

nities, including leadership development for potential future managers, specialized skill training, and cross-training to promote flexibility and understanding across different areas of the business.

Retention is key to maintaining a knowledgeable and experienced team. We strive to create a positive work environment where employees feel valued, supported, and part of a community. This includes offering competitive compensation and benefits, opportunities for career advancement, and recognition for hard work and achievements. We also encourage feedback and open communication, allowing employees to voice their ideas, concerns, and suggestions for improvement.

BOTTOM LINE

Annual revenue: Estimated $100 million. Growth meter: How do you measure your growth? One of the primary measures of growth is through our financial performance. This includes looking at revenue growth, profitability, and other key financial metrics, such as EBITDA. Comparing these figures year over year or against our planned targets, helps us gauge the financial health and growth rate of our business.

For a franchise-based business, the number of new locations you open is a significant growth indicator. It reflects not just your overall expansion, but also the strength and appeal of the brand. Tracking the pace at which new

stores are launched, alongside the success and performance of these new outlets, helps measure our growth and market penetration.

Growth is also measured by customer-related metrics, including customer satisfaction scores, repeat business rates, and the acquisition of new customers. Customer feedback tools and data analytics help us understand how well we are meeting customer needs and how effectively we are expanding our customer base.

Vision meter: Where do you want to be in five years? 10 years? In the next five years, I would hope to have opened an additional 100 locations for Marco’s. I think we would also be looking to start with another brand that would complement the Marco’s brand. In 10 years, I would still think we are the largest franchisee for Marco’s Pizza and have potentially become a true multi-brand business with one or two more brands added to our portfolio.

What are you doing to take care of your employees? Employees are the most important part of the business, and we have a bunch of different things we do for them. We have a robust bonus program that is uncapped and pays the store-level leaders and above a percentage of profit. We have access to two different vacation properties for employees who have been with us for a certain amount of time.

What kind of exit strategy do you have in place? We have always been a company that likes to run operating businesses. I do not have an exit strategy at this time. 

“HUNGRY, HUMBLE, AND SMART”

Mark Ireland is the Innovation Award MVP (Most Valuable Performer) for bringing a new and unique contribution to his brand.

Written by GINNY GAYLOR

MARK IRELAND

Fitness transformed Mark Ireland’s life. Growing up in Florida as a skinny kid who was bullied, he decided to take action during middle school by lifting weights and working out. In high school, he wanted to join the football team but found he was more often used as a tackling dummy because of his size. Dissatisfied with this role, Ireland adopted routines from Arnold Schwarzenegger’s Encyclopedia of Modern Bodybuilding. He discovered a supportive community at the gym where everyone shared the common goal of self-improvement.

After graduation, Ireland enlisted in the military where physical exercise played a significant role. When he left the army four years later and returned home, he pursued part-time college studies, worked as a bartender, and joined a gym.

“I’ll never forget. I was going into the gym one day, and I saw the owner’s parking spot,” he recalls. “And here come the owners in a convertible—both in great shape—and they go into their club. I saw them and thought, ‘That is amazing.’”

The encounter planted a seed.

Though he worked in manufacturing, he never lost sight of his dream. “I was good at what I was doing, but I kept thinking, ‘Is this as good as it’s going to get?’” he says. “I was middle-aged and not happy with my career, so I talked to my girlfriend at the time.”

The couple, now married, had a conversation about their dreams. They found out that they both wanted to own a gym. “We started researching, and 17 years later, here we are.”

Ireland has continued to identify innovative ways to increase the value of the memberships offered at his clubs. Understanding the increased emphasis being placed on recovery across the fitness industry, he proposed a premium membership concept to the Anytime Fitness corporate team, offering red light therapy, monthly Evolt scans, and regular check-ins with a coach. In January, the brand approved.

He is a member of Anytime Fitness's Franchise Advisory Council, and his leadership and innovative mindset have proven to be extremely valuable to the brand, especially as the corporate team continues to focus on helping members achieve holistic health and wellness.

“I am engaged with the brand, passionate about what we do, and always looking to improve and evolve our offerings to our members and each system as a whole,” he says.

"I AM ENGAGED WITH THE BRAND, PASSIONATE ABOUT WHAT WE DO, AND ALWAYS LOOKING TO IMPROVE AND EVOLVE OUR OFFERINGS TO OUR MEMBERS AND EACH SYSTEM AS A WHOLE.”

MVP QUESTIONS

Why do you think you were recognized with this award? I received a call from Self Esteem Brands (Anytime Fitness’ parent company), and they asked if they could submit my name for this award. I’d like to think it’s because I am engaged with the brand, passionate about what we do, and always looking to improve and evolve our offerings to our members and each system as a whole.

What innovations have you created and used to build your company? I asked Anytime Fitness corporate if I could pilot red light therapy as a recovery option in my clubs in 2023. The results were amazing. We changed our membership offering from a single option to a base and premium option and upgraded 28% of all new members joining to premium membership. For the first two months of 2024, we are averaging more than 55% upgrades to premium. This has led to an increase in membership revenue and a decrease in membership attrition.

What core values do you think helped you win this award? Our core values are to always possess honesty, integrity, and loyalty; provide our members with more than they expect; always continue to learn and grow; be kind and have a sense of humor; serve our communities and each other; and help people, make friends, and have fun!

How important is community involvement to you and your company? Extremely important. The more engaged we are with our communities, the more support we get from the communities. It’s the ultimate referral program.

What leadership qualities are most important to you and your company? Hungry, humble, and smart.

PERSONAL

Key accomplishments: Married my best friend, Helen. Quit my middle management factory job at the age of 45, opened our first club, and started living life to its fullest. I have summited Mount Hood, Mount Baker, and Mount Rainier. I’ve hiked the Wonderland Trail at Mount Rainier National Park and the Paria River Slot Canyon in Utah. I’ve also rafted the waters of the Grand Canyon.

Next big goal: Explore Torres del Paine National Park in Patagonia in Chile.

Hardest lesson learned: Not everyone’s interests are on your best behalf.

Best advice you ever got: Trust but verify.

Favorite book: Think and Grow Rich by Napoleon Hill.

What’s your passion in business? Helping others achieve their goals.

MANAGEMENT

Business philosophy: Provide my team with the vision, tools, knowledge, support, and accountability to accomplish the mission.

Management method or style: Explain how to do it, show them how to do it, watch them do it, let them do it, and repeat when needed.

Greatest challenge: It’s changed over the years. Now I would say finding hungry team members who want to be challenged to grow.

How close are you to operations? I’d like to think I’m an engaged owner. I review our KPIs daily, work with our regional manager daily, and visit clubs one to two times a month. We host a monthly leadership meeting to train and strategize.

How do you hire and fire, train and retain? We use Career Plug recruiting service and always have it on. We recruit from within our clubs: We’re always on the lookout for members who would make great team members. We offer scholarship opportunities for personal trainers. We look for team members who are hungry, humble, and smart (emotional intelligence). We create a culture of accountability. Those who do not hold themselves accountable will stand out and typically weed themselves out.

COVID-19

What have been the biggest impacts of Covid-19 on your business? During the pandemic, we were shut down completely. Our industry was deemed nonessential, and in some areas of the country, we were considered

a spreader of the virus. Since then, the public has realized that preventive health measures are an important part of a healthy lifestyle. We have doubled down, providing our clients and members with the knowledge, tools, support, and accountability to achieve their health goals. Because of this commitment to them, we are thriving.

BOTTOM LINE

Annual revenue: $3.6 million in 2023. 2024 goals: Figure out our exit strategy.

Where do you want to be in five years? 10 years? More travel and adventure with family and friends, meeting cool people, and doing cool things.

What are you doing to take care of your employees? Teaching them how to run their own business.

What kind of exit strategy do you have in place? Working on that now. 

SERVANT LEADER

Joseph Omobogie is the American Dream MVP (Most Valuable Performer) for achieving remarkable success in his new country.

Written by GINNY GAYLOR

More than 20 years ago, Joseph Omobogie took the mighty risk of leaving his native Nigeria to seek success in the U.S. His faith in God and belief in the Golden Rule guided him during difficult times. He worked in factories and restaurants and installed security equipment until the right opportunity and the right person presented themselves.

“I came to this country, and Mark Parmerlee, the Golden Chick president, took me under his wing,” Omobogie recalls. “He didn’t care if I spoke English or what my color was.”

Parmerlee has supported Omobogie throughout his franchise career. “I wanted to buy a property, but my credit wasn’t good enough, so he helped me, and the property is 100% mine today,” Omobogie says. “I can’t stop talking about him because I would not be here without him.”

Omobogie first encountered the Golden Chick brand while installing security cameras at a gas station with a Golden Chick location. “I overheard they wanted to lease the location,” he recalls. That store was his first, allowing him to start the path to realizing his business goals. “I started working harder every day,” he says.

JOSEPH OMOBOGIE

Despite bumps along the way, Omobogie was determined. He eventually became the No. 1 store in the Golden Chick chain. He’s now a multi-unit and multi-brand franchisee who owns Tropical Smoothie Cafe, Thai Express, Marco’s Pizza, and Captain D’s locations in addition to Golden Chick. His operating group brings in more than $30 million annually, and he oversees approximately 400 crew members who “work with him,” not “for him,” he says.

Omobogie has a fierce drive to grow and improve, but he is quick to credit Parmerlee’s mentorship and assistance in helping him achieve all he has. “Mark has done nothing but good for me,” he says.

MVP QUESTIONS

Why do you think you were recognized with this award? I am honestly very surprised, and it is an honor. To be recognized completely caught me off guard.

How have you raised the bar in your own company? I raise the bar by holding my entire team accountable with high levels of service and very high standards in all my stores.

What innovations have you created and used to build your company? I use the Golden Rule. I want my whole team to treat

"ONE OF THE HARDEST LESSONS I HAVE LEARNED IS THAT I NEED TO MAKE SURE THAT I AM TAKING TIME TO INVEST IN THE PEOPLE I HAVE AROUND ME— ESPECIALLY MY TEAM."

everyone as they would like to be treated. It hasn’t failed me yet.

What core values do you think helped you win this award? That would be my passion for this work. It includes my eagerness to work hard and to bring in every walk of life on this journey with me.

How important is community involvement to you and your company? It is very important. Without our community, we are nothing, and we have nothing.

What leadership qualities are most important to you and your company? To have master-servant qualities. That would include humility, empathy, stewardship, and awareness.

PERSONAL

Formative influences/events: What influences me is the hunger to be successful.

Key accomplishments: I feel that my key accomplishments are to be able to build a company from the ground up and have the complete support of my team to run operations smoothly if I am not involved.

Hardest lesson learned: One of the hardest lessons I have learned is that I need to make sure that I am taking time to invest in the people I have around me—especially my team.

Next big goal: By the time I turn 60, I would like to own 60 locations for various brands.

Best advice you ever got: That hard work pays off, but not only hard work: Consistent hard work will always pay off.

Favorite book: My favorite book is the Bible. What’s your passion in business? Honestly, it would be the people. To be able to serve our different communities is my passion.

MANAGEMENT

Business philosophy: My business philosophy is creating a culture of inclusiveness and

belonging where all are welcome, exceeding customer expectations in everything we do, holding ourselves accountable at every step, embracing change and innovation, and looking for new ways to grow our organization and ourselves.

Management method or style: I like to empower my people to give them the opportunity to thrive. It’s not a dictatorship. We have to work together to get to the bigger picture. Yes, I started the company. Yes, I am the owner, but I could not do this without the help of my team.

"I LIKE TO EMPOWER MY PEOPLE TO GIVE THEM THE OPPORTUNITY TO THRIVE. IT’S NOT A DICTATORSHIP. WE HAVE TO WORK TOGETHER TO GET TO THE BIGGER PICTURE."

Greatest challenge: Ensuring that my team and my community are taken care of.

How close are you to operations? I’m in my stores daily. There’s nothing in the store that I can’t do. I go to a store, and I’m in conversation with the managers, the crew, and the customers. I work right alongside the rest of my team. Anything they do I will do as well. I treat them like family because they are my family.

How do you hire and fire, train and retain? I entrust my area managers and GMs with that responsibility. I visit stores and share my vision and feedback with them.

COVID-19

What have been the biggest impacts of Covid-19 on your business? Employees— nobody wanted to work. I think everyone was just scared. It was something we haven’t faced. We had to adjust, and our community still needed to be fed. In the beginning, some days we only had two or three people in the store, but they still showed up, adjusted to the safety guidelines, and were there.

BOTTOM LINE

2024 goals: My 2024 goals include continuous

growth. I would like to add at least seven more stores by the end of the year.

Growth meter: How do you measure your growth? There is no measurement. As long as there is continuous positive growth, that’s all that matters to me.

Vision meter: Where do you want to be in five years? 10 years? In five years, to have 60 locations open. In 10 years, the sky’s the limit, honestly.

What are you doing to take care of your employees? I do not like to call them my employees. They are my familial co-workers. I do whatever it takes to take care of them just like I would want someone to do for me.

What kind of exit strategy do you have in place? I don’t have one. I love what I do and have built people around me who have the same compassion I have. 

A MISSION TO SERVE

Todd Recknagel and Kristi Mailloux are the Influencer for Husband & Wife Team MVPs (Most Valuable Performers) for demonstrating excellence in franchising as husband and wife.

Written by GINNY GAYLOR

TODD RECKNAGEL AND

KRISTI MAILLOUX

Todd Recknagel and Kristi Mailloux were raised by entrepreneurs. “We both watched our parents who owned their own businesses in different industries,” Todd explains. “My grandparents were also entrepreneurs,” he adds. The family influences offered both of them a vision and an opportunity to see the value that owning a business could provide.

Todd’s grandmother was widowed at a young age and opened a gift shop to support her family. “It allowed her to have freedom and independence,” he recalls. “I experienced that without realizing what it meant, especially for a woman in the 1950s.” His other grandparents were early A&W franchisees, and his parents owned a group of pharmacies.

Kristi’s parents owned an HVAC business. She explains that growing up in that environment showed her the freedom and flexibility that owning your own business can bring. “We were growing up at the knees of the entrepreneurs who came before us,” she says.

Their fathers were salespeople for their respective family businesses, which taught Todd and Kristi the importance of community from a young age. “My dad knew so many people in the community, and he was of great value to the community,” Todd says, adding that he and his wife continue that spirit of giving back.

The pair are dedicated to their faith community, including supporting a retreat to help pastors refocus and reconnect to their missions. Todd and Kristi also take part in a marriage ministry, helping married couples strengthen their relationships.

They’ve also supported other franchisees. Both have been speakers at franchise events. Todd is a longtime board member of the International Franchise Association and was

" WE BELIEVE IT’S EXTREMELY IMPORTANT TO MAKE SURE OUR COMPANY LEADERSHIP TEAMS ARE FOCUSED ON MAKING OUR EMPLOYEES FEEL VALUED WHILE FOCUSED ON PROVIDING A GREAT CULTURE."

chair of the IFA’s membership committee and Franchisee Forum.

Todd’s first job out of college was working for a franchisor. That’s when he first realized the value of franchising. “It helps so many people who may not be entrepreneurs at heart become business owners because of the proven model,” he says. His appreciation for franchising has only grown since then and has allowed the couple to scale their lives in better ways. As Kristi says, “Our dads had to figure it out on their own, but if they had franchises, they could have scaled their businesses at a much higher pace.”

MVP QUESTIONS

Why do you think you were recognized with this award? We’ve both been devoted to franchising for more than 30 years, serving many roles and being blessed with opportunities to lead many teams. We are honored to receive the Influencer for Husband & Wife Team MVP Award.

How have you raised the bar in your own company? We believe it’s extremely important to make sure our company leadership teams are focused on making our employees feel valued while focused on providing a great culture. This has helped to improve our company performance and led to greater profitability for our companies.

What innovations have you created and used to build your company? In some of the franchise systems, we’ve been large multiunit franchisees. We have even been the largest multi-unit franchisee. We’ve built more sophisticated methods of operations and systems than the platforms offered by the franchisor. The franchisor has adopted some of the systems we developed. It is gratifying to be able to lead as a franchisee and add value to our franchise systems.

What core values do you think helped you win this award? We believe it is our passion for scaling business systems, adding value to our teams, and having faith and optimism in everything we do.

How important is community involvement to you and your company? We are involved in several communities, likely in a different way than you might think of community. Our companies are spread among 13 different states; yes, we’re involved in the local communities and charitable events. In addition, we are committed to the franchising community, trying to enhance and protect the franchising model, and we’re dedicated to the

faith community, helping pastors and marriages. For example, we are using our talents to help organizations scale by serving as advisors for pastors’ retreat centers, trying to help the significant number of pastors who are burned out. We are involved in a marriage ministry that is helping improve marriages. Imagine our society without pastoral care and with the continued epidemic of broken marriages and families. Those are additional communities we serve.

What leadership qualities are most important to you and your company? A great Bible verse says, “Seek the Lord first and His righteousness and He will add everything else unto you.” We do our best to abide by this by seeking Him first, and culture, growth, and profits will follow. We want to be clear here that this is a daily focus that we strive to make sure we spend time on as we often get excited about something and get ahead of ourselves. It has been important to slow down and evaluate the opportunity by passing it through our filters (described earlier) while also hearing from God.

PERSONAL

Formative influences/events: Todd:

Started in franchising in the early ‘90s as a Blimpie franchisee (largest multi-unit franchisee at the time) and area developer. Won the IFA’s Franchisee of the Year Award 25 years ago in 1999. I joined the IFA Board in 2002 and helped lead the IFA prayer breakfast, Franchisee Forum, and Franchisor Forum. I have been partnered with 10 franchisors and five multi-unit franchisees.

Kristi: My first job out of college was entry level at Molly Maid franchisor corporate headquarters, where I spent 20 years in multiple roles, learning from the ground up. I ended up leading Molly Maid during my last six years with the company, and it served as an amazing education because I was learning directly from successful franchisees and leaders of the company. Little did I know then, it would lead to a path pretty much for the remainder of my life/ career of being both a multi-unit franchisee and franchisor.

Next big goal: Wherever God may lead us. We consider Him a partner in all of our

decisions. We are considering lots of opportunities right now.

Hardest lesson learned: Pay God first, pay ourselves second, and then pay debt down third. Follow that formula and you will never run out of resources. We have had to relearn this in almost every company we have had.

Best advice you ever got: Know the difference between a want and a need.

Favorite book: Other than the Bible, Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins is still a favorite. The theories and formulas in that book are perfectly relevant for today.

What’s your passion in business? Helping our leaders further develop their skill sets to become all that God intended them to be.

MANAGEMENT

Business philosophy: It is kind of interesting. We have learned over time to develop filters regarding business characteristics that will help us say yes or no to a new opportunity. It should align with our vision and purpose, be a service or product we are passionate about, be a repeat/recurring model where possible, include partners that we like and trust, and have executives/team leaders who we genuinely enjoy being around.

Management method or style: We work to give our people the proper training and development to grow and then coach along the way to help them overcome challenges and celebrate successes. We have also been willing to move people on who refuse to be developed and turn into a cancer in our culture.

Greatest challenge: Todd: Leading myself and overcoming my challenges! Because I have been blessed to experience success, I have tendencies to be prideful or selfish. If I strive to value myself and, in turn, value others, then I need to be intentional about adding value to others and treating them as I would want to be treated. Overcoming myself is challenge one. Challenge two is building a great culture.

Kristi: Making sure we are adding value to our leaders, so we can build an attractive culture so recruiting and retaining great employees is never really an issue.

How close are you to operations? Todd focuses more on the finance and strategic leadership areas. Kristi is much more involved in leading our operational and marketing team members and goes deeper in those areas but is more behind the scenes in assisting our leaders.

How do you hire and fire, train and retain? We have helped create (with our leadership teams) a recruiting program in both our Sola Salons and Massage Envy groups. Those include adding innovative technology and resources that help our teams recruit team members who outperform the competition. We also focus heavily on retention. Both areas require constant attention, metrics tracking, and tweaking.

COVID-19

What have been the biggest impacts of Covid-19 on your business? We live in a changing world and have been so proud of how our teams have navigated Covid, the Great Resignation, higher interest rates, high unemployment, low unemployment, and more.

BOTTOM LINE

Annual revenue: Approximately $125 million in Massage Envy, approximately $30 million in Sola, and approximately $100 million in Office Pride (franchisor-system sales).

Growth meter: How do you measure your growth? The typical metrics include revenue and EBITDA growth. In our Massage Envy group, our focus is on recruitment and retention. We have become the largest single employer of therapists and estheticians in the country. Our service providers have provided more than 20 million hours of healing to our clients, a staggering sum. In our Sola Salons group, occupancy and the success of our Sola pros. By focusing on our pros, occupancy takes care of itself. We are just blessed to be a part of these teams.

Vision meter: Where do you want to be in five years? 10 years? We hope to be able to take part in similar types of business opportunities, and we have no real plans to retire. Our business size may be more or less than today. What really matters is where God is leading us.

What are you doing to take care of your employees? We believe in taking great care

of our team members and value their health and wellness along with aligning their interests with ours. In our Massage Envy group, we have incentive bonuses, paid time off programs, healthcare, 401K, free monthly services (a best-in-class suite of benefits), and advancement opportunities to grow personally, like continuing education programs and leadership development. In our Sola Salons group, we provide similar opportunities for our team members.

What kind of exit strategy do you have in place? We do not plan to retire. However, having private equity partners with all our companies, we tend to be on their schedule for exit timing. We have a charitable trust and a foundation set up so that we can continue to invest in more companies as well as continue to do God’s kingdom work. We believe our God-given skill sets include being a multiplier of multipliers, which means adding value to leaders who impact many others and using our talents to help scale other organizations. 

MOTIVATED MARINE

Cheston Syma is the Veteran Entrepreneurship MVP (Most Valuable Performer) for outstanding performance, leadership, and innovation by a military veteran.

Written by GINNY GAYLOR

CHESTON SYMA

Cheston Syma’s entrepreneurial spirit kicked in during elementary school when he started selling Blow Pops to his classmates for a quarter each. “My parents owned their own business, and I grew up helping them,” he recalls. Looking for ways to make his own spending money, he asked his mom for a big bag of candy. “She asked me what I wanted it for, and I told her.” Syma’s mom supported his plan, and soon he had recruited friends who helped him and earned their cut.

“I made $20 a week and had employees,” he says with a laugh. “It was great for a 12-year-old.”

Syma credits his parents’ work ethic as a strong influence on his early entrepreneurial ventures and his efforts today. “They worked very hard, but they set their own hours, controlled their own time,” he says. “That stayed with me.”

While Syma knew he wanted to be a business owner, he also wanted to join the Marines. He viewed it as a chance to do things he might not get the chance to do again. After serving for six years, he attended the University of Houston and earned his degree in business finance.

After graduation, while working as a personal trainer, a client asked if he enjoyed what he did and if he wanted to do it as a career. He told the client of his dreams of owning his own business. The client worked at Sport Clips and suggested he come check it out.

“I thought it was a great model, so I filled out the paperwork and bought my first two locations from someone who was selling in 2004,” he says.

Now Syma is up to 52 locations and still growing. He employs nearly 400 people, and he currently owns the highest-grossing Sport Clips locations in Houston and the North Dallas area.

“They gave me a great start, working with a franchise that’s very supportive, especially of military veterans,” he says.

MVP QUESTIONS

Why do you think you were recognized with this award? Honestly, I’m not sure, as I am sure there are many qualified and successful veterans out there who deserve it as well.

How have you raised the bar in your own company? I expect my leaders to always lead from the front, which means leading by example. Do not ask others to do what you are not willing to do yourself. To this day, I will clean toilets and the floor around the toilet to show I am also there to serve the customers (not

myself). I clean other things too, but that one seems to get the most attention and chatter.

What innovations have you created and used to build your company? The great thing about joining a franchise is that you are buying into a turnkey operation that is supported by a very talented support team that you as a small franchisee may not be able to afford. There will always be process gaps that a franchisee may find and can fill on their own. Many of the processes I have implemented are the innovations that have propelled my stores to the top of the leaderboard. One such innovation example is the in-depth leadership classes my top leaders and I teach. Many times, as business owners, we concentrate solely on teaching management skills but do not take the time to teach leadership skills. You never hear someone say, “I will follow that person anywhere because they are a good manager,” but you will hear someone say, “I will follow that person because they are a great leader!”

What core values do you think helped you win this award? I have adopted Sport Clips’ values as my own:

• Do what’s right means always do the right thing. Nothing is worth violating this rule.

• Do your best. People can never achieve their goals, objectives, and dreams without giving their absolute best effort every day.

• Treat other people the way they want to be treated means always thinking about how your actions may affect others and whether that would make them feel good. Remember that others may want to be treated differently than you. Some people prefer direct communication; others need more empathy and support.

How important is community involvement to you and your company? We strive to be involved in the community like most businesses, but it is hard to donate to every Little League team that calls. Even though we do donate to many, it is not always possible to donate to all. We try to impact our local communities most by participating in more generalized causes that have bigger impacts with national and local nonprofits that share our values.

What leadership qualities are most important to you and your company? Tact— how you speak to others. Dependability—if you say you will do something, will you? Integrity—can I trust you? Initiative—can you do things without being asked? Enthusiasm— do you inspire? Unselfishness—do you put others first?

PERSONAL

Formative influences/events: The leadership skills, patience, and perseverance I learned during my time in the Marines.

Key accomplishments: To be able to employ and help almost 400 people in five different states. Small businesses are the heartbeat of America, and I feel proud to be able to provide careers to so many.

Next big goal: There are so many big goals. Open 12 SweatHouz units in Austin in the next six years, open nine Big Blue Swim Schools in Houston over the next six years, and acquire the rest of Sport Clips Haircuts locations in Houston. But to eat an elephant, you just take one bite at a time, so I do not think about big goals. I just want to have a happy team, and live by my values, and success seems to follow that.

Hardest lesson learned: Mistakes you make yourself are the costliest form of education. Take the time to learn from others. Network, research, and pilot new ideas to prevent those costly mistakes.

Best advice you ever got: If no one died, and you won’t remember it a year from now, it’s not a big deal.

Favorite book: Extreme Ownership by Jocko Willink.

What’s your passion in business? My passion is building—building businesses, stores, and teams—and seeing all the cogs work in unison to achieve success.

MANAGEMENT

Business philosophy: Show your team the path to success and they will pave the way for your own success.

"TO BE ABLE TO EMPLOY AND HELP ALMOST 400 PEOPLE IN FIVE DIFFERENT STATES. SMALL BUSINESSES ARE THE HEARTBEAT OF AMERICA, AND I FEEL PROUD TO BE ABLE TO PROVIDE CAREERS TO SO MANY."

Management method or style: Train, mentor, and coach, then step aside. Give praise freely and often and always inspect what you expect.

Greatest challenge: Rebounding from Covid was and still is my greatest challenge. The business atmosphere and employee mindset seem to have changed.

How close are you to operations? I have a very flat organization. I’m not saying it’s the right way to do things, but it is the way I have chosen for this period in my life. All leaders who are not at the store level report directly to me.

How do you hire and fire, train and retain? We try to hire on personality and teach the skills. Because it is a franchise, we have a robust training program online and in person for the various brands we are involved in. Retention is based on attitude, performance, and results. There will always be a bell curve of performances, so we don’t necessarily let people go for performance or results, and that is why I listed attitude first.

COVID-19

What have been the biggest impacts of Covid-19 on your business? The biggest impact of Covid-19 has been the mental shift of the labor pool. There seems to be a large shortage of available talent now that we have returned from the Covid shutdowns, and it is difficult to pinpoint the reasons for the shift. I am sure there are various reasons contributing to the labor shortage, but even after three years, it seems to be a large impact on almost all industries.

BOTTOM LINE

Annual revenue: $15 million annual estimated for 2024.

Growth meter: How do you measure your growth? As with any for-profit company, we measure growth using YOY revenue comparison, but measuring growth isn’t always the key indicator of success. There can be sacrifices in long-term sustainability for short-term growth, so various metrics have to be measured to ensure there is growth and success. Other metrics are retention, key KPIs, and the “social web” of the company. The social web is a term I coined to describe how interactive and boughtin the employees are. If the company hosts a party, how many employees show up? The more who show up, the stronger that web is.

Vision meter: Where do you want to be in five years? 10 years? In five years, I would

like to see myself at 100 units of various brands and still CEO. In 10 years (or less), I would like to see myself hiring a CEO and taking more of an advisory role within the organization.

What are you doing to take care of your employees? I have always had the belief that businesses must take care of their employees first by paving their path to success. If the employees are successful, that is a good indicator the company will be as well. A happy team is a happy business. There is always a larger pool of customers than there are of good employees, so address the tightest constraint first. In my various businesses, we try to pay at the top part of the pay curve compared to our competition. We provide meaningful benefits and give employees various release-valve options. Many times, employees leave because either bad people are allowed to stay or because they do not feel supported. Not only do my employees have the personal phone numbers of the entire leadership team (including mine), but we also do quarterly surveys to measure the morale of the company, we do random calls to the stores weekly, and I am constantly doing in-person site visits so that I get a true pulse of the store’s operations, morale, and energy.

What kind of exit strategy do you have in place? I do not have an exit plan currently. My plan is to be able to oil the machine well enough so that I can step back and allow others to lead in my place. 

“PUSHING THE ENVELOPE”

Keegan Trudgen, along with business partner Tim Lohse, is the Spirit of Franchising MVP (Most Valuable Performer) for extraordinary and enduring performance, growth, and community giving.

Written by GINNY GAYLOR

KEEGAN TRUDGEN

(and business partner Tim Lohse)

Keegan Trudgen admits it may sound unusual to some, but he’s been interested in business since elementary school.

“I spent my entire childhood dreaming up business ideas,” he recalls. He got his start mowing lawns and doing odd jobs for a neighbor, Paul Schmitt, who became Trudgen’s mentor. “I would ask him what he knew about business. He owned his own company, and he mentioned that I could get people to mow for me, so I didn’t have to mow, and my 9-year-old mind was blown,” he says, laughing.

Following his early days as a mowing mogul, Trudgen went on to school, receiving his MBA from Northwestern University before working at several large corporations. “But I always knew I wanted to do my own thing,” he says.

He reached out to a friend who had started a franchise and asked how he got started. The friend was moving and offered to sell him the business. Trudgen wasn’t ready at that moment, but the two developed a plan for Trudgen to manage the business for a year. After that, Trudgen bought the friend out and started expanding. “I was at the right place at the right time with the right brand,” he says. “I love the brand, and I enjoy what I do.”

Trudgen and his business partner Tim Lohse have territories spanning multiple states, and they have received multiple awards from PuroClean, including being named perennial President’s Circle winners.

Trudgen and his team have volunteered with food banks, toy drives, Realtor events, golf tournaments, and breast cancer awareness initiatives. They’ve also supported one of their team members who was paralyzed in a motorcycle accident.

Whenever there is a call for storm support, they work in the trenches and volunteer time and materials as needed. A major insurance company commended the team for providing excellent customer service to policyholders.

Trudgen and his team represent PuroClean on the Network Leadership Council and serve as brand ambassadors. They also mentor other PuroClean franchisees.

In 2022, they partnered with the International Franchise Association, speaker Scott Greenberg, and Bright Pink Agency to launch an official Franchisor Appreciation Day, which continues annually. Trudgen has also been a panelist for the Multi-Unit Franchising Conference and the IFA Annual Conference.

“Our business philosophy centers on servant leadership, extreme ownership, active collaboration, and relentless customer service with a mission to help those affected by disasters,” he says.

MVP QUESTIONS

Why do you think you were recognized with this award? We are always pushing the envelope as to where we can take this business and work with PuroSystems, which owns PuroClean, to make those dreams a reality and bring others in the network along with us.

How have you raised the bar in your own company? We are leading the technological charge and using tools and technology to help people affected by disasters.

What innovations have you created and used to build your company? We developed the multi-unit program for PuroSystems, allowing PuroClean franchisees to reinvest in PuroClean and serve other communities and clients.

What core values do you think helped you win this award? Servant leadership, extreme ownership, active collaboration, and relentless customer service.

How important is community involvement to you and your company? Our community is everything to us. We service our community in times of disaster and want to be a resource for them.

What leadership qualities are most important to you and your company? It is important to train and develop your people and give them opportunities to grow and lead.

PERSONAL

Formative influences/events: Meeting my first mentor, Paul Schmitt, who introduced me to the basics of business at the age of 9.

Key accomplishments: Being awarded an MBA from Kellogg Graduate School of Management in 2008 and acquiring PuroClean Disaster Services in 2013.

Next big goal: Becoming the largest PuroClean operator in the franchise network. Hardest lesson learned: Don’t compare yourself to anybody else. You don’t know their struggle, and they don’t know yours.

Best advice you ever got: You can be right, or you can be rich, but you can’t be both.

Favorite book: Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins.

" WE INVEST IN OUR EMPLOYEES FOR TECHNICAL REASONS AND TO GIVE THEM ACCOMPLISHMENTS, WHICH WE CELEBRATE."

What’s your passion in business? Helping people.

MANAGEMENT

Business philosophy: Our business philosophy centers on servant leadership, extreme ownership, active collaboration, and relentless customer service with a mission to help those affected by disasters.

Management method or style: Hire good people and let them tell you what to do.

Greatest challenge: Getting the best people to join your team.

How close are you to operations? Very close. We are aware and involved in our daily operations.

How do you hire and fire, train and retain? We train people as if they will never leave.

COVID-19

What have been the biggest impacts of Covid-19 on your business? We helped essential businesses stay open and keep people employed during the pandemic.

BOTTOM LINE

2024 goals: $16 million.

Growth meter: How do you measure your growth? Growth in net operating income and measuring the effectiveness of this number as a percentage of revenue.

Vision meter: Where do you want to be in five years? 10 years? We want to be the largest PuroClean operator in the franchise network, servicing communities and our clients nationwide.

What are you doing to take care of your employees? We invest in our employees for technical reasons and to give them accomplishments, which we celebrate.

What kind of exit strategy do you have in place? We want to develop a solid, recession-resilient business that will be attractive to any investor’s portfolio. 

2024 MULTI-BRAND 50

Multi-Brand 50

(all

Multi-Brand 50

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Industry pros find common cause at MUFC

Written by KERRY PIPES

2024 Multi-Unit Franchising Conference

The Multi-Unit Franchising Conference (MUFC) has become the conference for franchisees, franchisors, and suppliers to gather, talk shop, do business, and have some fun.

“This conference is a place to meet people, be interactive, and exchange phone numbers,” said MUFC Chair Jesse Keyser as he officially welcomed attendees to Caesars Forum in Las Vegas. “This conference gives you a gear that no other conference can.”

This year, a record 2,300 attendees met in Las Vegas for franchising’s signature event from March 19-22. There were more than 800 franchisees representing 250 brands, operating more than 17,000 units, and generating more than $15 billion in systemwide revenue. More than 380 exhibitors and sponsors were on hand to support the conference and meet with franchisees during exhibit hall hours.

Numerous education sessions covered important industry topics, such as growth, planning, leadership, and logistics, and peer-to-peer networking opportunities were around every corner. This year’s Sponsor Networking Area filled two large meeting areas and set a new record for the number of exhibitors.

KEYNOTES

On the first full day of the conference, Jim Collins, author of Good to Great, one of the best-selling business books of all time, commanded everyone’s attention during his keynote address about having “disciplined people, a disciplined process, and disciplined action” as a formula for success.

“Discipline is in essence consistency of action,” Collins said. He shared insights into

how to build an enduring organization, including how important it is to get the right team “on the bus.” He also advised leaders to stay humble and operate from the “Stockdale Paradox,” which means moving forward with unwavering faith while always acknowledging the facts on the ground.

“It’s not about making a company that is built to last,” he said. “It’s about making a company that is truly worthy of lasting.”

Jeff Henderson, aka “Chef Jeff,” was on hand for day two to tell his remarkable story of redemption that found him going from the streets to the kitchen. As a child, he lacked the advantages that others had, but he also learned to adapt. “I was born partially blind in my right eye,” he said. “But I was able to see things that people around me never saw.”

While serving jail time on drug charges, he fell in love with food service and also learned about business from white-collar inmates. He left prison with a new perspective and a drive to succeed as a chef. Henderson became the star of television’s “Flip My Food with Chef Jeff” and author of If You Can See It, You Can Be It.

“It’s a country of second chances,” he said and asked his audience to consider offering opportunities to people from disadvantaged backgrounds. “Do managers and leaders reflect the demographics of the community?” he said. “Do they reflect the customer base of that store?”

WARM - UP

Every MUFC kicks off with a charity scramble-style golf tournament at the Arroyo Golf Club at Red Rock. That evening was set aside for a franchisee-only get-together at Carmine’s

great opportunity for franchisees to see old friends and make new ones.

DAY 1

A continental breakfast greeted attendees as they prepared for their first full day at the event.

Franchise Update Media’s co-founder and CEO Therese Thilgen welcomed attendees and revealed the record number of attendees and exhibitors at the year’s event.

Next up was Jesse Keyser, MUFC chair, who encouraged everyone to take advantage of the opportunities and build relationships throughout the conference. Platinum Sponsors Jersey Mike’s Subs and Inspire Brands were recognized.

The rest of the morning belonged to keynote speaker Jim Collins.

Box lunches gave attendees a chance to chat with those around them before FRANdata CEO Darrell Johnson took the stage with his annual economic report. The good news: “Record stock market and falling inflation, net worth of U.S. households has increased 37% between 2019 and 2023.” Bad news: “Inflation has outpaced wage growth, consumer spending and buying habits are trending down, and real disposable income has lagged real consumption for two years.”

Johnson said mature brands are accelerating the launching of new brands, and personal services and QSRs are expected to exceed other sectors. He also sees continuing growth of platform companies acquiring brands within the same sector or industry. He noted that lenders were becoming very data driven at sector, brand, and borrower levels.

Italian Restaurant in The Forum Shops at Caesars Palace. This casual event is always a

2024 Multi-Unit Franchising Conference

Next up was a general session panel called “Enterprise Growth: Identify the Next Big Brand or Category.” Supercuts multi-unit operator Gary Robins moderated a panel that included Jim Balis, CEO of Sizzling Platter, a multi-brand franchisee with nearly 800 units in the U.S. and Mexico; Ray Harrigill, an operator whose holdings include Hampton Inn, Home2 Suites, Holiday Inn Express, Palm Beach Tan Tanning Salons, Massage Envy Spas, and My Salon Suites; Tony Lutfi, a multi-unit franchisee of Arby’s, Church’s Texas Chicken, and Batteries Plus; and Charles Keyser, who, along with his brother Jesse, operates Oxi Fresh Carpet Cleaning and Sport Clips.

Robins and the panelists discussed how to vet emerging brands and industries. They agreed the brand’s leadership is a major factor when deciding to work with a new brand. “We want to be involved with brands that have great leaders,” Lutfi said.

The panel wrapped up the day’s formal schedule, and everyone headed to the Sponsor Networking Area for the first time to enjoy cocktails and conversation.

DAY 2

Breakout sessions kicked off the second day. Attendees could choose from four tracks: Business Logistics, Future Planning, Grow Leaders, and Growth. The four morning sessions included “Grow Leaders Track: Programs To Develop Area Managers into Stronger Leaders,” which zeroed in on how operators can

identify, hire, and promote their area managers and build stronger leaders. Panelists shared how they had used tools and strategies to raise up next-level leaders in their organizations.

The session was moderated by Scott Taylor, a former top executive at Walk-On’s Enterprises and Family Sports Concepts. His panelists included Aicha Bascaro, founder and CEO of the American Franchise Academy; Laura Storrjohann, an area manager with Keyser Enterprises; and Clement Troutman, a Tropical Smoothie Cafe multi-unit operator.

“As the saying goes,” said Troutman, a 24year Navy veteran, “true success is how many people are better off because of you.”

Down the hall was “Growth Track: Build Your Infrastructure to Expand Your MultiUnit Enterprise,” where moderator Andrew Feghali, a multi-unit operator of Little Caesars, Jersey Mike’s Subs, and Dave’s Hot Chicken, led panelists through a discussion of how to attract quality employees and build a strong bench. Panelists discussed everything from building culture to finding the right contractors. Several panelists mentioned that they offer general managers and other employees pathways to ownership by allowing them to invest in the unit, providing extra incentives to succeed. Panelists were Alex Carney, a Freddy’s Frozen Custard & Steakburgers franchisee; Jason Dalton, a Camp Bow Wow franchisee, Wade Oney, a Papa Johns franchisee; and Chris Smith, a McDonald’s operator.

Two other sessions rounded out the morning: “Business Logistics Track: Funding Options To Grow More Franchise Locations in Challenging Times” and “Future Planning Track: What New Technologies Are Positively Impacting Your Business Growth with Multiple Locations and Brands.”

The morning’s next event was a general session featuring Jeff Henderson.

Next up was a general session panel called “Advocacy and the Value to the Bottom Line.” Rob Branca (Dunkin, RimTyme, and Interstate Battery) moderated a panel that included Ashley Coneff, VP, government affairs & impact for Inspire Brands; IFA President and CEO Matt Haller; labor attorney Michael Lotito; and multi-brand franchisee Nathan Garn.

boneless menu and optimizing our kitchen operations. Our

impressive top-line sales, reaching $3.23M*, to

younger demographic, through glowing reviews.

In 2020, our mission was to craft the best hand-breaded chicken tender and sandwich within our segment. Since then, we've expanded into multiple markets

2024 Multi-Unit Franchising Conference

The panelists emphasized the importance of advocacy at every level and how all franchisees should get involved and build relationships with political figures now. “If you need a relationship today, it’s too late,” Garn said.

Box lunches followed next and led right into the announcement of the 2024 MVP Award winners. (For more on the MVP Awards, read Page 08.)

One more round of breakout sessions filled the afternoon schedule. “Business Logistics Track: IFA Franchisee Advocacy—Importance of Protecting Your Business,” “Future Planning Track: How To Build Your Business Plan To Prepare for a Potential Sale—Whether You’re Ready or Not,” “Grow Leaders Track: Best Practices for Recruiting—Roles/Structure of the Recruiter,” and “Growth Track: Enterprise-Size Franchisee Forum—Successful Franchisees Discuss Their Biggest Learnings, Successes, and Challenges.” The rooms were packed, and each session allowed for audience interaction and discussion.

One more trip to the Sponsor Networking Area rounded out the day.

WRAP- UP

The final morning of this year’s MUFC offered two closing sessions for attendees to choose from: “Build Your Growth Leaders Plan—Attract, Recruit, Retain Unit-Level Talent To Grow Within the Organization” and “Closing Workshop 2: Expansion Program for International Investors, Franchisors, and Franchisees.”

The conference was a hit with attendees.

“This was my first experience at the MultiUnit Franchising Conference, and I truly enjoyed it. I will certainly return in the future,” said Nadeem Bajwa, a Papa Johns franchisee with more than 200 locations.

“We thought the conference was excellent. The speakers, panelists, and exhibit hall area are top shelf. We attend every year and wouldn’t miss it,” said Ray Harrigill, a multi-unit franchisee with Palm Beach Tan, Massage Envy, Hampton Inn & Suites, Holiday Inn Express & Suites, Home2 Suites, and My Salon Suite.

“MUFC 2024 was an incredible event. The speakers were amazing, sharing great content and best practices for multi-unit franchisees. A really great list of franchisor brands as well. Left with a great list of new franchise connections. Really enjoyed the opportunity to participate as a speaker. Certainly looking forward to next year’s event,” said Clement Troutman, a Tropical Smoothie Cafe franchisee.

“The event was great! It was good to see the interest in district manager development with it having a full room with a standing audience.

A lot of people approached me to thank me for the information afterward. I believe that we made a difference,” said Aicha Bascaro, founder and CEO of the American Franchise Academy.

“I thought the event was fantastic. It was one of the better conferences I have attended, and I attend a lot,” Jim Balis, CEO of Sizzling Platter.

Next year’s Multi-Unit Franchising Conference will be at Caesars Forum in Las Vegas, March 25-28th, 2005. For more information, visit www.multiunitfranchisingconference. com in the coming months. 

CONFERENCE BY THE NUMBERS

Aggregated statistics from the 2024 MUFC

2,300 Total attendees registered

800+ Franchisees registered representing more than 600 franchisee enterprises

250+ Franchise brands represented 17,000+ Operating units

2 or more brands

3 or more brands

3 or more units

10 or more units

384 Exhibitors and sponsors (combined)

$15+ billion Total annual revenue

75% Franchisees seeking other brands

71% Single-brand franchisees seeking other brands

68% Franchisees interested in acquiring operating franchises

4,000 Units opening in the next 12 months

Mentoring and Coaching

In the mid-1980s, Shane Paul was talking to his sergeant in the Army National Guard when the senior soldier dropped this pearl of wisdom: “Only a fool learns from his own experience. The truly wise person learns from the experience of others.”

It’s a timeless maxim with several variations. When a young and inexperienced Paul heard the quote for the first time, it was a lightbulb moment. The future Jack in the Box franchise operator realized that he didn’t need to figure out everything on his own. He could pick the brains of others, learn from their mistakes, and emulate the qualities that made them successful.

He tells the story when explaining his approach to professional development. The sergeant’s words led to Paul’s career-long practice of seeking out mentors to advise him and help sharpen his interpersonal skills, and he’s shared what he’s learned again and again.

He also has another story. It’s about an incident that happened when he was working as a restaurant manager in the mid-1990s. He made a mistake calculating food costs. The blunder was memorable because of what followed. “My district manager took me out to the dumpster area and cussed me out for 10 minutes,” Paul says. “I teared up, and I was a grown adult. It hurt.”

That encounter also informed his career. He realized that if he wanted to coach employees to great job performances, he couldn’t just point out their weaknesses. He had to notice their strengths.

Whether they are on the receiving end or the giving end, mentoring and its more results-oriented sibling, coaching, are powerful tools for franchisees. Formal and informal mentoring and coaching aim to build skill sets through personal interactions. When done right, they can effectively enhance professional development and improve job satisfaction.

How do mentoring and coaching differ?

Matt Maiorino, managing partner of Merion Health Partners, which owns seven American Family Care locations in the Philadelphia area, says there are key distinctions.

“To me, mentorship really involves being a sounding board for someone less experienced. Coaching is probably more directorial; it’s a this-is-how-you-do-it kind of approach,” Maiorino says. “Coaching feels more like training to me, whereas mentorship is like an ongoing, interactive relationship where you’re saying to someone, ‘This is what I’m thinking,

but what are you thinking? Is this how you could approach it?’”

Omar Simmons holds similar views on mentoring and coaching. He’s a founder of Exaltare Capital Management, which owns 110 Planet Fitness gyms, seven Urban Air Adventure Park locations, and more than 30 Good Feet stores. Along with Conscious Capital, he’s the franchisor for Uni K Wax.

“I was captain of my track team in college, and I’ve always valued coaching. I think of coaching as a little bit more objective and task oriented. It’s a little bit more specific and usually driven toward a particular objective,” he says. “I think of mentoring as being more holistic and more relational: ‘I’ve had some experiences that might help you think through a situation and help you develop more broadly.’ I think of mentoring as distinct from coaching. You can be a mentor and a coach, but you have to be clear on what hat you’re wearing at any one time.”

ASKING FOR HELP

Paul was a consultant for McDonald’s and Burger King before being hired by Jack in the Box as a division vice president in 2012. He then took over franchisee operations on the West Coast. He decided to become a franchisee in 2017. Now, he owns seven Jack in the Box locations in San Diego and will soon expand to Louisville, Kentucky.

When he was new to Jack in the Box, he found someone to help him understand the company’s culture and workplace dynamics and to act as a sounding board. “One of the biggest mistakes I’ve seen is people just trying to do it on their own,” says Paul, who’s sought out mentors and had them assigned to him. “They’re afraid to ask for help. They don’t want to look like they don’t know what they’re doing.”

His advice to franchisees who are struggling is to ask for help because most people are willing to give it. Over the years, he’s mentored quite a few people. “When somebody genuinely wants to do well, and they’re asking for help, nobody says no,” he says.

Mentors vet ideas and talk through challenges that arise. Often, they share their professional network and give advice and encouragement to their less-experienced mentees. “Mentoring requires you to actually adapt over time to the style of the person learning from you,” Paul says.

It’s a relationship that sometimes has no end date. Ray Pepper, one of Paul’s mentors at Jack

in the Box, retired five years ago. “And to this day, we still meet three or four times a year,” Paul says, “and I’ve been seeing him for over a decade.”

INVESTING IN PEOPLE

Coaching carries a different connotation. It’s often seen as corrective. But “when you coach, it’s not always correcting bad behavior,” Paul says. “The best coaching action is given when you see someone doing something well, but they can maybe do better, and it’s positive.”

He also sees coaching as part of his job. It doesn’t require the same level of buy-in from the other party as mentoring does, he says. He can coach someone whether they want it or not.

“In a multi-unit franchisee environment, there are usually specific ways you do things,” he says. Tasks and processes are spelled out, he adds, “and that’s where I see a lot of coaching on the spot come into play because they’re doing something, and you know they can’t do it that way.”

Feedback should be delivered in a palatable way because some employees don’t want it. On the other hand, many franchisees don’t shy away from feedback—negative or positive.

Simmons’ businesses grew fast, and his background in private equity played a large role in that. He understood strategic value creation and how to secure financing. “What I had to learn was how to manage the human beings who actually deliver the service to the customers that we care about,” he says, “and that’s where I got a lot of help.”

As a first-time CEO in 2012, he scouted mentors and joined organizations that catered to CEOs with entrepreneurial leanings. “I’ve also benefited from coaching. I tried executive coaches and got help from experienced board members. I’m a big believer in investing in people, including myself,” he says.

Being the efficient business operators that they are, Simmons and his wife, Raynya, came up with a vision for how to scale their investment in others. They started and provided the seed funding for the Franchise Ascension Initiative, a new effort announced at the International Franchise Association Annual Convention in February. The initiative focuses on identifying talented people from underrepresented communities and preparing them to become franchise owners.

“We wanted to create a program where we could systematically and structurally get

Mentoring and Coaching

people mentoring and could scale an entire program to help people be their best selves,” Simmons says. “It’s not just training in how to be a business owner and how to be a franchise owner. There’s also a mentoring and coaching component that happens after the six-month training program.”

Brands have thrown their support behind the initiative. Soon after the announcement, franchise leaders began volunteering to be mentors. The response has been overwhelming, Simmons says.

“It’s been incredibly heartwarming—the number of people and brands that are like, ‘How can I help?’ Some people are offering business services. People are offering their talent,” he says. “It feels great to give back. It feels even better when you see other people working shoulder to shoulder with you, committed to making a difference.”

IDENTIFYING THE EXPERTS

Maiorino of American Family Care has been in franchising for five years. Before that, he worked in real estate and private equity for about 15 years. He said he was drawn to the urgent care and walk-in clinic model because of the industry’s impressive growth and because he wanted to be in a service-oriented business. “I just really liked the idea of enhancing people’s lives and improving health,” he says.

While he understood the site-selection side of franchising, he knew he’d need to quickly bone up on other aspects of the business.

“There was a lot on the operation side that I needed to learn,” he says, “and, in that respect, finding the right mentors was key.”

He began identifying the experts inside the American Family Care network with deep knowledge of business development, marketing, and finance. He found a mentor in fellow American Family Care franchisee Jack Fromm, who’s in a partnership that owns multiple clinics in Tennessee and North Carolina.

“Very early on, he invited me down to tour their clinics and to get an understanding of how they approach business development,” Maiorino says. “I would come down and pick the brains of his team.”

It was an incredibly fruitful relationship. As Maiorino’s knowledge of operations grew, he started to give back by becoming a mentor to others in the brand. He also shares ideas with Fromm that could help improve his operation.

Maiorino encourages franchisees who need a bit of guidance to look around their franchise

network and take stock of the experts there. Franchise advisory councils and franchise associations are great for meeting brand leaders.

“All these franchises have what is essentially a board of franchisees, and they often have many subcommittees,” he says. “Just getting involved and finding a way to contribute and having a willingness to contribute, to me, is an excellent way to network and find people that know more about something than you know. It gives you an opportunity to learn from them. I think approaching it with humility, in kind of a hat-in-hand way, goes a long way.”

SETTING GOALS

Greg Atwell is the director of operations for Mosquito Squad and also a franchisee with ownership of the El Paso-Las Cruces territory in Texas and New Mexico.

“There’s a lot of informal mentoring, where people build relationships at meetings and connect that way,” says Atwell, who has been a franchisee for KFC and Taco Bell in the past. “My group of business advisors and I will help hook different franchisees up together. We’ll take a new franchisee, and if we see they’re struggling in a certain aspect, we’ll have another franchisee connect with them. That’s been our system for a while now to help guide them through some of those struggles.”

Atwell has been a mentor and a mentee. Trust is key to a successful mentoring relationship. Both sides need to invest the time it takes to build the necessary comfort level.

“It’s definitely a time commitment,” Atwell says. “At a minimum, to be a good mentor, depending on what you’re doing, it’s at least two or three hours a month. Anything less than that and you aren’t really connecting with the mentee.”

Conversations should be mentee driven, he says. However, even in an informal arrangement, it helps to impose some structure on the meetings or calls, and it’s important to keep up with what the mentee wants to accomplish.

“You want to make sure you set goals so that when you’re doing your monthly calls, they, the mentees, are letting you know how they are,” Atwell says. “Are they on track, off track on the goals that we set to drive them forward?”

The payoff comes in watching the growth of the mentees as they become more comfortable doing things that they had struggled with in the past. Atwell says he gets satisfaction from knowing he played a part in helping someone else grow.

“It doesn’t matter what profession you’re in or what you’re trying to do,” he says, “I think anybody can benefit from mentoring.” 

Words of Wisdom

At heart, mentoring is about sharing wisdom and experience with others to help them develop as people and business leaders. Check out these insights:

• “It’s important to approach the relationship as a mentee with what I would refer to as mental liquidity. What I mean by that is the ability to change your mind without getting stuck in a particular point of view despite what your prior experience might lead you to believe.”—Matt Maiorino.

• “Mentoring is very relational. What works in one relationship might not work in another.”— Omar Simmons.

• “For mentoring, just know that you’re giving advice. You’re not giving specific directions. When you talk about coaching, understand your tone. Understand they may not want the coaching, so it makes a difference how you deliver the message.”—Shane Paul.

• “Communication. Twoway communication.”— Greg Atwell.

Afranchisee can’t serve each customer. From day to day, they need teams of people to help them accomplish everything that must be done to build a successful business. That’s why it’s important to establish a winning culture that engages employees and incentivizes them to provide stellar customer service.

In the aftermath of the pandemic and the Great Resignation, low unemployment rates mean workers have options. Business leaders have long understood that customers choose where to spend their dollars. They’re also adapting to the reality that workers have choices about where to sell their time.

Organizations of all sizes are developing ways to acknowledge their teams’ contributions. Strategies include awarding points and prizes for standout performance, focusing on hiring from within, and making sure a worker’s tires are safe enough to get them between home and work each day.

However, culture goes beyond strategies. When done right, it’s a fundamental part of growing a business. Read on to see how leaders can turn employees into team members.

People first CEO Jim Balis and other leaders at Sizzling Platter, which operates nearly 750 restaurants, spent 2022 changing the company’s mission statement to reflect its priorities: “We provide unparalleled experiences for our team members, guests, and brands while driving strong financial performance to become the world’s premier franchise platform.”

The mission statement appears on the first page of the company’s website. Click on the “Who We Are” button, and the words “We are a people first company” pop up. Scan down the page a little further, and Sizzling Platter advertises that in 2022, the company promoted more than 5,000 people and gave raises to more than 6,500 employees.

“It’s very important to be an employer of choice and to really take care of our people and engage with our team members on a personal level,” Balis says.

Sizzling Platter’s expansive portfolio includes Little Caesars, Jamba, Wingstop, Dunkin’, Jersey Mike’s Subs, Cinnabon, Red Robin Gourmet Burgers, and Sizzler. Balis can’t have a personal conversation with each of his thousands of employees. However, he and his leadership team consistently communicate how important team members are to

everything the company wants to accomplish. By creating and reinforcing a culture of appreciation, Sizzling Platter sends a message to everyone in the organization.

“Even when we have meetings on the financial performance of our business, our brand presidents start off with an example of how we’ve lived up to our mission statement the last week. There are some incredible stories that come out of that,” Balis says. “This isn’t just about driving financial performance. We also want to really stress and highlight the importance of our culture and how we’re focusing efforts there.”

The dynamic between employers and employees has changed in the wake of the pandemic. The Sizzling Platter team recognized the need to engage with team members and take care of them. The approach starts on day one. “We put a lot of effort now into that first day, making sure they have uniforms, making sure we prepared for them, and making sure they get the training they need,” Balis says.

Follow-up surveys ask about the team member’s first day, first week, and first month. Other questions cover how training can be improved and how the new hire is fitting in with the team. “We want them to feel comfortable at their job,” Balis says, “and we don’t want them stressed because we’re not properly staffed.”

Photos of new hires appear on a screen in the back of the house as a way to welcome them. Whenever someone gets a positive review from a customer, that shows up on the screen as well. Sizzling Platter also uses a third-party provider to award points that can be exchanged for prizes. “We really try to use it for reaffirming how much we appreciate everything they’re doing day in and day out,” Balis says.

Managers who exemplify Sizzling Platter’s culture receive financial rewards and attend a yearly retreat in Mexico. Financial performance matters and so does having a history of promoting from within. Balis says that when employees see how the company cares for them, they’re more likely to provide high-quality service to customers.

“We can’t stay static, right?” Balis says. “We’re constantly looking at ways to be better and to evolve in positive ways.”

(For more about Jim Balis, read Page 10.)

Changing approaches

Greg Goodman, a co-creator of Turbo Tint and a franchisee, considers his employees to

be as important as the customers who visit his two locations in Oklahoma City. However, he didn’t start out believing in an employeefirst culture.

“I was just an employer hiring employees and expecting them to do their job from 8 a.m. to 5 p.m.,” says Goodman, CEO of DBA Turbo Tint. “I wasn’t really invested in my employees.”

Over time, he noticed a problem with that approach. The people he’d spent so much time training kept leaving for other jobs. The bottom-line issue caught his attention, but he didn’t solve his problem until he recognized the human issue.

“I tried to put myself in their position. What would I like to see this company do for me?” he says. “That’s when I started making sure my guys had health insurance. It’s very important that my guys are healthy and can afford to go to the doctor.”

That was just the beginning. Team members now get their birthdays off from work with pay. Leeway is built into the schedule for parents to catch an important ball game or band performance. Once a quarter, the business shuts down, and employees go bowling, golfing, or some other outing to build teamwork. In addition, the team gets a free lunch each week, and workers select the menu. Lunch happens each Thursday, and it’s followed by “Whiskey Friday,” when the business shuts down for the week at 4 p.m. instead of 5 p.m.

“They could have a glass of whiskey if they wanted. They could have a beer if they wanted,” Goodman says. “We would talk about women. We talked about cars. We talked about politics. We talked about whatever. But there’s no talking about work. It’s about camaraderie.”

In addition to building their team and serving customers, Goodman and his son Chandler represent the brand and teach the Turbo Tint way to new franchisees and installers who visit Oklahoma City.

“We really push the team culture, and we just try to get new owners to emulate what we do,” says Chandler Goodman, COO of DBA Turbo Tint.

In recent years, Goodman has pulled away from day-to-day operations, and his son has stepped in. Chandler Goodman manages the two locations and is committed to maintaining the same culture-building policies that his father started.

“We think of them as part of our team rather than employees,” Chandler Goodman says.

Culture

“Our whole production system is based on a team. They work together to complete the vehicle or the job as quickly as possible.”

There must be accountability, but there’s also a general understanding that people will mess up at times. “We tell our customers that even Rolls Royce has a service department, so no matter how good you are, there will be mistakes,” Chandler Goodman says. “I don’t care if it was our top dog or the guy who just started tinting yesterday. It does not matter to me. Fix it and move on.”

He can’t provide an ROI on investing in people, but he sees no bottom-line or human reason to veer from the path his dad set years ago. “I will tell you, our guys fully buy into it,” he says.

Calm and collected

For a positive culture to take hold, people up and down the organization need to buy in. If procedures aren’t promoted and modeled by the person at the top, the team won’t adopt them.

“It’s just a daily thing,” says Mark Boyd, who owns House Doctor and Painting 360 territories in Augusta, Georgia, and Aiken, South Carolina. “You have to get up every day prepared to process your own emotions and to process the emotions of others. That’s what it takes to be successful.”

In his experience, home repair can stir up emotions for customers, employees, and subcontractors. Mistakes and misunderstandings happen, and tempers can get heated. Boyd says his first job is to project calm when dealing with conflicts.

“The biggest thing is don’t panic so you can keep the team in line,” he says. “Team members are afraid they’ve let the customer down, or they’re afraid that they’re going to be blamed, or they’re afraid that they’re going to let their employer down, which creates a fear that they’re going to lose their job.”

In those situations, the goal is to alleviate that fear, so the worker doesn’t act on it and

worsen the situation. Problems at the job site aren’t always caused by the job. There might be underlying factors at play.

“Groceries are expensive, fuel is expensive, cars are expensive, and just to rent a home is very expensive now,” he says. “A lot of times, it’s just solving that daily life need now and seeing if you can help them so that they can be productive. Do they need tires on the car to make it safe for their family?”

Boyd says his approach has affected profitability because he’s not constantly training new workers. It’s also helped attract workers because team members and subcontractors tell others about the culture. “When people are trained, they understand what your guidelines and what your rules are,” he says. “Then they can teach it to the next person we hire.”

It helps that he’s an owner-operator, so he spends plenty of time with his frontline employees and gets to know them. However, maintaining and modeling culture isn’t easy. It took him years to arrive at his approach as he learned from watching good and bad managers. He also studies management and leadership books by Steven Covey, John Maxwell, and others.

“You have to be prepared to take a moment to really understand what that person is going through and see if we can work through it,” he says.

Opportunities abound

Working nights in an intensive care unit in St. Louis doesn’t provide Dr. Chris Jenkins much time to oversee his frontline workers at seven MassageLuXe locations in Florida and one in Pennsylvania. He relies on his regional manager and general managers to shape the culture at his studios.

“It works out really well because I have an amazing regional manager and good general managers at each location, so I’m able to have my proxies in place who do exactly what I would hope that I was doing,” Jenkins says. “Obviously, when you get to a multi-franchisee level, you can’t clone yourself. If you don’t have

people in place that represent you, you’re never going to be able to do it anyway.”

He’s learned that there’s a vast difference between having a person in place and having the right person for the job. When getting the Pennsylvania studio online, he had a different regional manager who might have said the right things but didn’t always follow through.

“It has to be consistent,” he says. “If it waxes and wanes, it’s not culture.”

After firing that manager, he elevated an employee who had started as a receptionist when she was in high school and earned a degree in hospitality management. She’d moved up from shift supervisor to general manager. “I put her in place, and she really ran with the position,” he says. “Now, we almost never hire managers from outside.”

When hiring new front desk workers, it’s understood that some will be transient, but Jenkins says it’s important for his staff members to see that they can move up in the company and build their careers.

“We try to keep a two or three-deep leadership in mind so that we have a general manager who’s supported by a good assistant manager,” Jenkins says, “and then they have shift supervisors who are ready to step in when somebody may get sick, or we may need somebody to step up if somebody moves on. It’s so much more successful that way because they see the culture.”

In addition to putting the right people in place, Jenkins sets goals that embody the culture he wants to cultivate. Profitability is important, but he says it’s also crucial that his staff members don’t feel as though their jobs are constantly on the line.

“I’m not a person who’s just going to fire somebody because they had one bad month,” he says. “Let’s find out what they need. Maybe they’ve had to take an Uber to work every day because their car is in the shop. I put too much into these people to just discard them when they’re having a bad month.”

Proven track record of successful multi-unit operations

Plan to grow a minimum of 10 cafés, depending on market size

Capital to support quick expansion

Passion

coffee & tea,

and The Coffee Bean & Tea Leaf

Jenkins says the MassageLuXe corporate team provides training to help build the right culture at his locations. He’s also learned from Boy Scout and church leaders who trusted him with responsibility when he was growing up.

“You’re saying, ‘Here’s your responsibility. I’m going to teach you what you need to do, and then you do it,’” Jenkins says. “I like that model.”

The value of time

Chris McJunkins started busing tables at age 15, and he’s been a bartender, host, waiter, dishwasher, and cook over the years. During that time, the contrast between good bosses and bad ones helped him develop his approach to management.

“I was just a young floor manager and had a great boss who taught me. He would take the time to teach you a lot and treat everybody fair,” McJunkins says. “Then you have a different boss, and it’s like, ‘Wait a minute. This is the same restaurant or same concept, but the leader is different.’”

As CEO of McJunkins Restaurant Group, he’s in charge of 10 Walk-On’s Sports Bistreaux locations and two Smalls Sliders locations (with a third on the way) in Louisiana, Arkansas, and Texas. He says leaders must set the tone and establish culture.

“If you’re in the restaurants day to day, every single day in the same building, you can create

the culture,” he says. “You’re there. You’ve got your hands on it. You’re touching everybody. You’re touching every customer and touching every employee. As we have grown, obviously, I can’t be in every store every day.”

McJunkins relies on like-minded people to run his restaurants and treat employees the way they should be treated. It’s his job to teach his managers and motivate them to run their locations properly. In a way, he’s passing down lessons he’s learned from Brandon Landry, the founder of Smalls Sliders and Walk-On’s.

“He’s a master. You can feel that he cares,” McJunkins says. “Everybody might want his attention, but when he’s talking to you, you’ve got his attention. He’s able to share his vision, and everybody wants to make it that way. Culture starts at the top.”

If McJunkins’ managers boost sales at their restaurant, they earn a share of profits. Rather than looking for opportunities elsewhere, they stay where their efforts are rewarded and continue to apply their skills and experience. “If you can keep the consistency going, you keep staff,” McJunkins says.

In a tight labor market, it’s important for workers to feel valued. McJunkins and his team achieve this by showing a healthy respect for staff members’ time. “Let’s just say you have eight servers on a shift and you schedule 12,”

What is culture?

An organization’s culture reflects its shared attitudes, values, goals, and practices. It’s not an addon, but a foundational touchstone that binds teams together and makes great things possible. As Larry Senn, the author of Winning Teams, Winning Cultures, says, “Culture is not an initiative. Culture is the enabler of all initiatives.”

Here are some other takes on culture:

• “A hallmark of a healthy creative culture is that its people feel free to share ideas, opinions, and criticisms. Lack of candor, if unchecked, ultimately leads to dysfunctional environments.”—Ed Catmull, author of Creativity, Inc.: Overcoming the Unseen Forces That Stand in the Way of True Inspiration.

• “Listen, involve, synergize at work. Then you will bury the old and create an entirely new winning culture which will unleash people’s talents and create complementary teams where

strengths are made productive and weaknesses are made irrelevant through the strengths of others.”—Stephen Covey, author of The Seven Habits of Highly Successful People.

• “Corporate culture matters. How management chooses to treat its people impacts everything for better or for worse.”—Simon Sinek, author of Start with Why: How Great Leaders Inspire Everyone to Take Action.

• “Company culture is the backbone of any successful organization.”—Gary Vaynerchuk, author of Twelve and a Half: Leveraging the Emotional Ingredients Necessary for Business Success.

• “Employee engagement arises out of culture and not the other way around.”—Moe Carrick and Cammie Dunaway, co-authors of Fit Matters: How To Love Your Job.

• “Culture does not change because we desire to change it. Culture changes when the

he says. “Four of them could have been home doing whatever they wanted to do. And the other eight could have been making the money that they should have been making instead of spreading it out to 12 servers.”

The same approach to scheduling applies to busboys, cook staff, and everyone else. “If they’re going to come to work, we’re going to make sure it’s worth their time,” McJunkins says.

Training and motivation are always important and necessary, but McJunkins says there is a limit to what they can do. In some cases, the best way to maintain a good culture is to let someone go.

“Sometimes, you just know that you made a bad hire. They don’t fit into your culture, but you’ll hold on to that person, thinking you can change them,” he says. “Sometimes, you do all you can to train or motivate or engage in private one-on-one conversations to get them on the same page as the rest of the group. At some point, you know it’s not going to work out.”

Customers have a choice of where to spend their money. Success often comes down to the quality of service frontline staff members provide, and those employees also have choices to make.

“I know it’s an old cliché, but it’s true,” McJunkins says. “Do you treat people like you want to be treated?” 

organization is transformed—the culture reflects the realities of people working together every day.”—Frances Hesselbein, author of My Life in Leadership: The Journey and Lessons Learned Along the Way.

• “No company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it.”—Jack Welch, author of Winning.

• “To win in the marketplace, you must first win in the workplace.”—Douglas Conant, author of TouchPoints: Creating Powerful Leadership Connections in the Smallest Moments.

• “Good leadership requires you to surround yourself with people of diverse perspectives who can disagree with you without fear of retaliation.”— Doris Kearns Goodwin, author of Team of Rivals: The Political Genius of Abraham Lincoln. 

SATISFACTION GUARANTEED

Certification program aims to drive franchise growth

Special to Multi-Unit Franchisee Magazine

Why do some franchise brands make it while others fail? According to FRANdata research, approximately 300 companies begin franchising each year in the U.S., but 84% of franchise systems never grow beyond 100 open locations. A new initiative called the Franchise Customer Experience Certification seeks to tackle this challenge.

According to founder Jayson Pearl, growth stalls for one reason above all others. “Our research shows that growing past 100 locations—or not—comes down to unit economics,” Pearl says. “Without it, even the most positive and engaged franchisee can’t afford, or won’t choose, to invest in sales and marketing,

to add additional units, or to recommend the franchise when prospects call for validation.”

Customer experience is a crucial and often missing element of success, Pearl says. A recent McKinsey study found that brands with higher customer experience scores have double the revenue growth of their peers. “However, there’s very little research into the most effective practices to leverage the customer experience to drive growth in franchising,” he says.

A 30-year franchising veteran, Pearl was inspired to create the certification program after working with the International Franchise Association and Franchise Update Media on the

Franchise Customer Experience Conference in Atlanta.

In May 2022, he assembled a working group of franchisors to explore solutions. Brands were chosen from different industries, but all have many years in franchising, consistent growth, and top consumer and franchisee-satisfaction accolades. Leaders included Chicken Salad Chick COO Jim Thompson; Christian Brothers Automotive Chief Growth Officer Brad Fink; PuroClean VP of Marketing and Online Learning Alex Pericchi; Wild Birds Unlimited COO Amy Moore; and Carrie Evans, a Certified Franchise Executive.

The group began with the hypothesis that profitable franchise unit growth happens when highly satisfied franchisees create highly satisfied consumers, leading to a cycle of growth and success. Focusing on franchisee and consumer experience, they set out to identify the most effective franchisor practices needed to create this virtuous cycle.

Their goal was to identify the standards and processes that lead to better franchisee profitability. For example, consumer feedback is important, but how are brands acting on that feedback and tracking improvement? What elements of the consumer journey have the biggest impact on customer loyalty? How do these metrics link to franchisee profitability?

What are ways to recognize franchisees who are driving profitability through great consumer satisfaction? What is the effect of franchisees collaborating on business planning and sharing accountability for results?

The franchisor leaders discovered that collaborating to support franchising had unexpected benefits. “Networking with fellow franchise executives was an indispensable way for us to unlock the secrets of delivering exceptional customer service, learning the most effective ways that brands can help their franchisees drive success,” Moore says.

The working group met over 18 months to share and analyze their brands’ practices and processes and examine examples across franchising. From this research, they developed a model with franchisee profitability at the core. They identified 32 different practices around franchisee and consumer experience that, when active and effective, lead to higher franchisee profitability. The group organized these into five pillars of success: Operationalizing Culture, Defining the Brand Way, Measuring and Improving Consumer Satisfaction, Measuring and Improving Franchisee Satisfaction, and The Profit Path.

er. “It turns out that a lot of the things that I thought we did differently aren’t as different. There are others out there who are very interested in the satisfaction of brand experience—and we can learn from them,” Fink says. “This further solidified the belief that if the franchisor prioritizes franchisee satisfaction and experience, and teaches, coaches, and trains guest satisfaction, it’s not hard to get positive, multi-directional results throughout your brand and into your communities.”

In November 2023, the institute invited brands from across industries to become certified and contribute their expertise toward improving the program. Participants included Batteries Plus, Fastsigns, Homewatch CareGivers, Massage Heights, My Salon Suite, NerdsToGo, and QC Kinetix. These brands completed their certifications and were recognized with awards at the IFA Annual Convention in February.

Based on the working group’s discoveries, Pearl founded the Franchise Customer Experience Institute this past year to build a certification program for brands seeking to drive faster growth through better consumer and franchisee experiences.

The institute’s team built the processes for validating franchisor practices through a secure online entry portal, franchisee and consumer interviews, and third-party data.

“There’s really nothing like this in franchising,” says Todd Houghton, president of Homewatch CareGivers. “We expected to learn a lot about the good things we are already doing along with ways to improve, and we did, but we also found that the process of gathering together all that we do around many areas of our organization was valuable. We now have a complete view of all the processes and tools related to our culture, training, and customer experience and how these drive franchisee profitability. We can use this in many ways, including onboarding new home office team members.”

Today, the Franchise Customer Experience Institute is working with executives for the next round of certified brands to be recognized at Franchise Update Media’s Franchise Customer Experience Conference in Atlanta, June 18–20.

“Our mission is to be the trusted resource for helping more fully build the community of franchise brands dedicated to customer experience excellence, learning from each other, and growing to new heights,” Pearl says.

[Photo: The Fastsigns brand leadership team was one of 11 that received the award recognizing their Franchise Customer Experience Certification at the 64th International Franchise Association Convention. From left to right are Chris Becraft, Grant Walker, Andrea Hohermuth, Jeffery Lewis, Scott Krupa, and Lana Daley.] 

The brand leaders were especially surprised by how much they could learn from each oth-

The team also created a Franchise Customer Experience Resource Center with research and more than 100 best practices and tools for brand teams to use as they pursue and achieve their certification.

Yum! Brands and the University of Louisville collaborate to change lives

Written by Helen Bond

University of Louisville’s Yum! Center for Global Franchise Excellence

Summer Worful was 15 when she landed her first job as a crew member at McDonald’s. Despite being painfully shy, she came out of her shell as she fell in love with her weekend side hustle. Still, when she left her small hometown of Smithfield, Kentucky, for the University of Louisville, Worful knew nothing about franchising and had never envisioned a future that included owning a business.

Everything changed when Worful took a business course on the fundamentals of the franchise model offered through the University of Louisville’s Yum! Center for Global Franchise Excellence.

Part of the center’s undergraduate franchise management certificate track, the class opened Worful’s eyes to the world of franchising and the depth and breadth of what it offers. This spark of enlightenment was ignited in real-world ways when the 22-year-old senior, a business administration major with a minor in management, joined three fellow students at the 2024 International Franchise Association (IFA) Annual Convention in February.

“It really made the impossible seem possible,” Worful says. “I got a lot of inspiration from people who were underrepresented or had a lot of struggles in life and saw how they took that as an opportunity and not as a setback, and it made them more motivated and even hungrier to go after their dreams. When I left, I seriously had the mindset that I could be a franchisee if I kept working hard. It was so awesome.”

Breaking barriers

Expanding the reach and opportunities for franchise education and entrepreneurship across industries is exactly what Kathleen Gosser had in mind when she leveraged her franchising and learning background to co-create the online franchise management certificate program—the first of its kind at a public university.

The center is part of Louisville, Kentucky-based Yum! Brands’ Unlocking Opportunity Initiative, which is a five-year, $100 million commitment designed to promote equity, inclusion, education, and entrepreneurship for employees, frontline restaurant teams, and communities worldwide.

Gosser, director of the center at the university’s College of Business, spent 35 years with the global brand before retiring to start her encore career. Under her leadership, the center continues to build momentum for its mission

through multilevel online franchise education and research and an ever-expanding number of heavyweight industry partnerships, including a franchising “who’s who” that makes up the Yum! CFGE advisory board. (Therese Thilgen, co-founder and CEO of Franchise Update Media, is a board member.)

“Our vision is to empower communities to build and sustain generational wealth through franchising,” says Gosser, who earned her MBA and Ph.D. from the University of Louisville. “Our mission is to be a world-class center that brings franchise education and research to all. That’s really important to us.”

who minor in entrepreneurship. Classes fill up immediately, and there are waiting lists, Gosser says.

Four courses, including a management practicum in the form of a research project or internship, focus on the critical elements of franchising through the lens of the franchisee. Students explore the pros and cons of the franchise model, dive into the franchise disclosure document and franchise agreement, learn what it takes to buy and grow a franchise, and unpack all the angles of the people side of the business. In fewer than three years, 432 undergraduate students have enrolled in the program.

Our vision is to empower communities to build and sustain generational wealth through franchising.

“If I had my way, everyone in the college of business would take the first franchising course because if I’m a finance or a marketing major or any of the others, I can have a job in franchising,” Gosser says. “Opening their eyes up to it is my big goal for folks to understand there are opportunities like you can’t believe in this wonderful business model.”

Marlee Henson, 19, discovered the franchise fundamentals and legal class while hunting for a management elective to add to her busy schedule. Henson, who says her nature is to do extra things, is passionate about everything she takes on. She had previously experienced Gosser’s gift for teaching in an orientation class and was eager to discover what the introductory franchising curriculum had in store.

“I mostly thought of restaurants and didn’t really think of all the opportunities that are out there,” Henson says. “It was so intriguing to me that there are not only a lot of different job opportunities but also industries within franchising, so I wanted to explore that more.”

Launched in 2021 with a stackable graduate-level franchise management certificate, the center was a success from the start. It was followed quickly by the development of a noncredit executive education version, now a requirement of the IFA’s credential, the Certified Franchise Executive (CFE).

Gosser, an assistant professor of franchise management, believes she’s found the sweet spot with the addition of the center’s nutsand-bolts undergraduate franchising track. The modules are open to any business school student as electives, with the online franchise management certificate available as an opportunity for management majors and students

Henson was hooked. The sophomore from Harrisburg, Kentucky, decided to add a franchise management certificate to her pursuit of a double management and marketing major along with a stackable healthcare leadership certificate to support her current job in marketing and communications for a local healthcare system.

Henson also attended this year’s IFA Annual Convention. She is finding her way in franchising, but she already has a keen interest in how the industry invests in communities.

“I see franchising as this middle ground where generational wealth is created in outstanding ways,” Henson says. “There are so many stories that are so inspiring. At the same time, there’s so much opportunity for growth. People are growing, and the economy and lo-

University of Louisville’s Yum! Center for Global Franchise Excellence

cal communities are growing, but at the same time, people are actually being helped, and it’s making a real difference in people’s lives.”

Henson plans to take a course on franchise human resources and leading teams as she continues to be on target for early graduation in December 2025. She’s still determining what the future holds but expects it to include the pursuit of an MBA and a master-level franchise management certificate.

“If I end up working in franchising, I’m sure I’ll get my CFE as well,” Henson says.

As Worful wraps up her last semester of college, she reflects on an experience that has played out in unexpected ways. She had never planned to work for McDonald’s after high school, but an offer to lead shifts as a restaurant manager, along with partial tuition assistance through the brand’s Archway to Opportunity program, was too good to pass up.

Worful’s work and school lives crossed paths, forging a career right before her eyes. In October, she jumped at the offer of a unique part-time opportunity as a business unit administrator, working with roughly 30 franchisees in the Bluegrass Operators Association (BOA), which includes 170 McDonald’s restaurants in the Louisville and Lexington areas of Kentucky.

Everything clicked for Worful when she enrolled in the introductory class on the basics and legalities of franchising. As she began analyzing the FDD as part of the coursework, she chose what she knew for a case study. Her firsthand experience at McDonald’s helped her better understand the franchise business model structure and the risks and responsibilities of a franchisee in an industry that is all about relationships. When Worful graduates in May, she’ll be ready with a foundational degree and a full-time position with the BOA waiting for her.

“I think that the class gave me the opportunity to have the job I have now because I can use it as a tool that most people don’t have,” Worful says. “Unfortunately, most people don’t have the opportunity to take a franchise class. And I honestly don’t think they really know what they’re getting into whenever they have positions like mine. Having that background knowledge makes my job a lot easier. They can talk about franchisees and franchisors and the relationship, and I know what that’s like.”

With each uplifting story, it’s easy to see why the franchise industry has embraced the

center’s work. Along with financial aid for all program levels in the form of scholarships, the CFGE board of advisors has provided travel money for the past two years for a select group of undergraduates to attend the annual convention of the IFA, which waived the registration fee.

Gosser says she has been overwhelmed by the willingness of franchise industry executives to take part in virtual roundtables, appear as a guest on her “FranchiseU” podcast, and donate their time, money, or resources in other ways.

“I cannot tell you how many people have reached out to me and said, ‘What can we do to help?’, ‘How can we provide our expertise?’, ‘Is there a way we can teach?’, ‘Is there a way we can speak to your students?’” says Gosser. “And, when I ask, no one says no.”

The center is establishing a system to track undergraduate data, but with students like Henson and Worful, you don’t have to look far to see the program’s impact. And you can bet Gosser’s not done yet.

Along with opening up the franchise management education program to the entire university—which is on the docket, says Gosser— she hopes to see franchise education become a mainstay in all higher education institutions.

She also looks forward to welcoming former students back as they venture out and become franchisees, work for franchisors, or have a career in a related field.

“I want my students to go on and be successful within the franchising model and then come back and have the students learning from them, so it’s full circle,” Gosser says. “That would be the real win.” 

MAKE CONVENIENCE Irrelevant

“Location, location, location” takes a back seat

Written by JOHN DIJULIUS

The phrase “location, location, location” has always been the number one strategy of brick-and-mortar brands. A great location was regarded as an area with heavy foot traffic, complimentary attractive businesses (Apple, Starbucks), easy accessibility, and the right demographic for your brand.

Today, the right location isn’t as important as the experience your brand consistently delivers. Plenty of businesses opened up in prime shopping centers but were poor at customer service and eventually closed. More than 80% of consumers surveyed say the experiences a company provides are as important as its products.

A motto of The DiJulius Group is to help companies “Make Price Irrelevant.” We define it this way: Based on the experience your brand consistently delivers, your customers have no idea what your competition charges.

The same can be said for “Make Convenience Irrelevant.” Think about your favorite restaurant, clothing store, dry cleaner, or café. I bet most of your favorite places are not the most convenient. Oftentimes, we drive past numerous competitors to get to the retailer of our choice because we prefer them and are willing to put in more effort to give them our business.

The first business I opened 31 years ago was John Robert’s Spa, a chain of upscale salons and spas in Northeast Ohio. John Robert’s has been selected as one of the top 20 salons in the U.S. multiple times. None of our locations are in prime real estate shopping centers. Our top-performing salon is located in Solon, Ohio. Solon is a great city; however, our salon is hidden off a side street that is difficult to access from the main road.

The salon is in an old and unattractive strip center. Other tenants go in and out of business regularly. We get guest complaints weekly about the inconvenience of the location. Yet, since 2001, the Solon location provides the

most revenue per square foot and has been our most profitable unit.

For more than 30 years, the strip mall has had at least half a dozen restaurants open and close, including well-known national brands and some mom and pops. Nothing has ever lasted in that location. That changed about 10 years ago when Chick-fil-A opened. Now, a line of cars tries to get in and out of Chick-fil-A. It is one of Chick-fil-A’s topperforming restaurants.

Retail renaissance

Because more and more brick-and-mortar brands are realizing the importance of the experience, retail is coming back.

A Fast Company article, “Brick-and-Mortar Retail Is Back but Without the Gimmicks,” demonstrates how a decade ago, the “retail apocalypse” was in full swing with thousands of stores closing annually as consumer behavior shifted toward online shopping. Brands were forced to create engaging in-store experiences to attract customers back to physical locations. After the pandemic, consumers have been eager to return to in-person shopping, resulting in more than 16,000 new store openings in the past two years. Retail sales soared to $6.18 trillion last year, marking an 11% increase from the previous year.

As the retail sector rebounds, brands are shifting their focus from merely providing entertainment to delivering personalized customer service that leaves a lasting impression. For instance, Todd Snyder offers instore tailoring services with a glass of Scotch. Orvis invites customers to participate in complimentary fly-fishing lessons in local waters, enhancing their ability to use new fishing equipment.

These enhanced customer experiences hark back to the traditional, personal touch that shopkeepers previously used to cultivate

relationships. In today’s digital age, such personalized, face-to-face interactions are perceived as unique.

The store experience

Todd Snyder and Orvis aren’t the only retailers using experiences to draw customers to their physical locations. Casper offers nap pods for daytime rest, Vans built a skate park inside its London store, and brands ranging from Glossier to Perrier designed visually stunning pop-ups to serve as perfect settings for Instagram photos. Converse has expanded its customization service, so customers can design a pair of sneakers entirely from scratch, selecting the shape, material, and shoelaces. The shoes are then assembled into the final product on the spot.

A Newsweek article, “What Consumers Expect from In-Store Experiences in 2024 and Beyond,” revealed customers expect frictionless shopping experiences bolstered by great customer service and technology. In a report from McKinsey, 71% of consumers expect businesses to understand and cater to their individual interests, and 76% of consumers said they get frustrated when companies fail to do so.

Retailers are attracting and keeping customers by marrying the digital with the in-store experience. Self-service kiosks, digital menus, and self-checkout systems are becoming increasingly common. Through augmented reality and smart labels, retailers can offer interactive product demonstrations or engage customers with in-store treasure hunts. Moreover, virtual reality can deliver comprehensive virtual try-on sessions or immersive product testing experiences, enhancing the overall shopping journey.

Retailers are creating unparalleled in-store experiences that go beyond what’s available online by offering personalized shopping options. Technology is at the heart of this customization, allowing retailers to utilize customer data and analytics to present individualized content through interactive displays. It’s all part of the retail renaissance. 

John DiJulius III, author of The Customer Service Revolution, is president of The DiJulius Group, a customer service consulting firm that works with companies, such as Starbucks, Chickfil-A, Ritz-Carlton, Nestle, PwC, Lexus, and many more. Contact him at 216-839-1430 or info@thedijuliusgroup.com.

Setting the Right Tone

Map out your employee orientation plan

Written by MARY LOU ATKINS

Orientation is an important event that sets the tone for your new employee’s job engagement. Employees are statistically more likely to stay with a company that has a great onboarding and orientation experience.

This is not only a time to explain policies and expectations, but to reinforce your culture while you connect and celebrate. The way orientation is handled is the new hire’s first impression of their co-workers, work environment, the company, and you. Make sure they feel welcome and appreciated.

Before orientation

You can set up for a smooth, successful orientation by preparing everything you need in advance. Here’s a list:

• Prepare uniform, supplies, keys, etc. to give to the new hire.

• Create new user logins and grant permissions for all applicable systems.

• Add new hires to your timekeeping system so that the employee can immediately clock in.

• Call the employee to confirm attendance and answer any questions.

• Make sure that all applicable federal, state, and local labor law posters are current and displayed in a prominent area.

Bonus tip: Share how excited you are about the new hire before their first day, so employees are aware of the new hire and eager to meet them.

During orientation

It’s time to give the new hire the best orientation they’ve ever had. Welcome them genuinely and warmly and spend some time getting to know them better. It’s always a great idea to offer a beverage and a snack.

It’s important to share the company’s story, so the new team member understands the history of their new workplace. This is particularly helpful when conveying the company’s culture.

Give the new hire:

• Snacks/beverages/welcome gift

• Important contact information

• Keys

• Login credentials for email and any other applicable system(s)

• Training schedule

Procedures

Show the new hire where to find all labor law posters and review important highlights with examples. You’ll also want to have an in-depth discussion about policies in your employee handbook. Be sure to review:

• Parking

• Breaks

• Storing personal items

• Uniforms

• Employee discounts

• Attendance, tardiness, and call-out procedures

• Payroll schedule

• What to do if there’s a conflict

• Scheduling, swaps, PTO, off days

It’s also important to confirm next steps and to thank the new hire for their time and attention. Let them know how excited you are to work with them.

Bonus tip: Did your new hire mention any favorite snacks, colors, etc. during the interview process? Take those into consideration when preparing for orientation.

After orientation

During training, it’s important to touch base with the new hire, trainer, manager, and others. Determine who is responsible for reaching out to whom. Establish a timeline and calendar for check-ins, and plan at least one in-person visit to show your support. After all, you are responsible for setting them up for success. 

Mary Lou Atkins, sHRBP, is the vice president of human resources at Chicken Salad Chick. She is a seasoned and strategic HR executive with 40-plus years of experience in the restaurant industry. She is skilled in talent and performance management as well as employee relations. She joined Chicken Salad Chick in 2019 as human resources director after previously holding various positions within operations, training, and HR at Popeyes Louisiana Kitchen for 35 years.

COACHING

Adopt a 5-step framework to solve problems

Written by BARBARA NUSS

When coaches lead franchisees to discovery through inquiry, the solution is their idea. And people don’t argue with their own data!

This five-step coaching framework works for any problem-solving process, including financial coaching. The secret sauce is a robust supply of open-ended questions that guide the franchisee to discover issues and solutions for themselves.

Step 1

Start by assessing the situation. With franchisee and coach side by side, review financial statements, ratios, goals, and KPIs. Make two lists: What is going well? What needs attention? And then start asking questions:

• How are results trending? (leads, conversions, average ticket, sales, gross profit, labor cost, cash flow, etc.)

• How do results compare to benchmarks?

• What stories do the numbers tell?

• How would you like it to look? What numbers do you think are attainable?

• How would you summarize all this?

Step 2

Go behind the numbers and consider the conditions that drove them. Priorities might be adhering to systems, developing teams with skills and capacity to scale, lifting employee and customer satisfaction, and improving operational efficiencies. Consider these questions:

• If you could fix just one thing, what would it be?

• How could you get a quick win?

• What is the most important story the numbers tell?

• What concerns you most?

• What will happen if you don’t do anything about it?

Step 3

Brainstorming works best with a variety of brains. Expand the think tank. Include team

members or a cohort of franchisees focused on common priorities. Make coaching scalable by getting people together for this step. Try these brainstorming questions:

• What drives success for the priority areas?

• What opportunities are you not exploiting to their full potential?

• What is holding you back, getting in the way of success?

• What have you tried already?

• What needs to change for you to become even more successful?

Step 4

Next, choose measurable milestones. These will become your framework for future coaching conversations. Choose leading indicators that measure drivers of sought-after improvements. Set quarterly targets extending through the coming year. Later, contrast these goals with actual performance. Consider the following questions:

• How will you know when you have succeeded? How can you measure it?

• What activities could shift results? How could you measure them?

• What does “good” look like? What is a “good” number?

• How big of a stretch is that?

• What goal would inspire you?

• If there was a bigger goal behind this goal, what would it be?

• Let’s put that goal aside and investigate others. What other goals would keep the team focused on the priority?

Step 5

The first four steps won’t change anything without step five, the plan. What do you need to know before deciding on a course of action? Who should be involved in developing and executing this plan? What structure will keep the plan front and center with you and your team? (Select meeting cadence, reports, dashboards,

accountability partners, mentors, etc.) Here are some more questions to ask:

• How is the business different if you reach the goal? (This reveals actions that could be taken now.)

• What needs to happen so you can do this?

• How is your current strategy working? What could make it work better?

• What must you start doing, stop doing, or continue doing?

• Who on the team is accountable for getting this done, by when?

• What are the next steps?

• What are the milestones for the next quarter?

Best answers

Accepting low-quality information is a rookie mistake. Never accept the first answer. Follow-up prompts can get to the good stuff:

• What do you mean?

• Tell me more.

• Where does that lead you?

• What other angles can you think of?

• Can you name just one more possibility?

• What could be causing that?

Keep it going

Before ending your coaching session, ensure everyone is clear about when the detailed plan will be written, complete with targets, dates, and assignments. People should know their annual and quarterly financial and nonfinancial performance goals and the top initiatives and milestones to accomplish before the next meeting. It’s also crucial to spell out how and when to measure, review, and assess progress.

A consultant with a solid framework, a curious mind, and a collaborative spirit can outperform one who relies on subject matter expertise to solve problems for franchisees. When the measure of success is improved financial performance, the process, not the advice, influences results. 

Barbara Nuss is the president and founder of Profit Soup, a financial training firm specializing in providing developing skills for franchisors and franchisees that enable them to trust their numbers, focus on priorities, make better decisions, and earn more profit. Visit www.profitsoup.com.

A Smooth M&A Integration

Investing in culture, coaching, and mentoring

Written by TORI WAGNER

Acquisitions are critical strategic tools for businesses seeking growth, diversification, and competitive advantage. However, the success of a transaction is not solely determined by financial metrics or strategic fit.

The integration of distinct corporate cultures, along with effective coaching and mentoring, plays a pivotal role in realizing the full potential of a merger or acquisition. Understanding the importance of culture, coaching, and mentoring is paramount in ensuring the smooth integration of teams.

Cultural dynamics

Culture presents itself through every aspect of an organization, influencing behaviors, decision-making, and overall operations and performance. During an acquisition, cultural clashes can present significant hurdles, potentially derailing the integration process and jeopardizing the transaction’s success. Conducting cultural due diligence identifies potential synergies and areas of misalignment. The acquired company and its employees often feel threatened, primarily by the unknown. Remember this dynamic when integrating the new team into the existing platform and operating environment.

Integration challenges often arise due to differences in communication styles, decision-making processes, and work habits. These differences can lead to friction among teams and resistance to change from employees wary of the new corporate landscape. Addressing these cultural differences requires a strategic approach, emphasizing the importance of cultural integration in achieving a seamless transition. Successful acquirers prioritize integration because losing existing employees is rarely a good alternative.

The role of coaching

Coaching helps prepare leadership teams for the complexities of M&A transactions. Effective coaching can equip leaders to anticipate challenges, address resistance, and foster col-

laboration among merging entities. Leaders are encouraged to lead by example, demonstrating adaptability and a commitment to the unified vision of the merged organization. Nevertheless, many employees have not gone through a similar acquisition and can be surprised by the sometimes challenging and time-consuming process.

Effective coaching by an advisor helps build a resilient leadership team that can navigate the uncertainties of M&A, ensuring that the closing, as well as the integration process, is aligned with the strategic objectives of the transaction.

Mentoring for success

Mentoring is another critical element of a successful M&A integration. Mentors provide guidance and support to help mentees adapt to the new corporate culture, understand their roles and responsibilities, and explore career development opportunities after the merger. The presence of mentors can significantly ease the transition for employees, helping them to see change as an opportunity rather than a threat.

Mentors facilitate cultural adaptation by sharing their experiences and insights, which can help employees transition more efficiently and effectively. They also advocate for their mentees, ensuring that their concerns are heard and addressed in the new organizational setup.

Structure and culture

Franchise networks come in all shapes and sizes, which can affect culture. Family-run enterprises can often operate like true local small businesses, serving their employees and the communities where they are located. Large firms can run more like a corporation with formal corporate structure and practices. Mergers and acquisitions among widely different-sized organizations will have the greatest adjustment for employees.

Franchise brands also affect the culture of their franchisees. Brands can lose their focus

on serving the franchisees’ best interests. They can get caught up in unit economics, growth, fee income, and serving their investors. All of these can have significant effects on franchisees currently in the system and potential franchisees attracted to the system.

Over time, companies may lose sight of the cultural elements that made them successful. Focusing on short-term objectives and immediate challenges can lead to a gradual erosion of the core values and principles that once defined the organization. Employees may become disconnected, lamenting, “This is not the same organization I started working for.” Franchisees can have the same attitude as culture changes, resulting in similar statements, such as, “The franchisor doesn’t care about my profitability anymore.” Both developments are problematic. A culture that took many years to develop and cultivate can disappear in a fraction of the time.

Be strategic

To effectively integrate culture, coaching, and mentoring into M&A processes, companies should establish clear guidelines, goals, and responsibilities. By emphasizing the collaboration of cultures with the mindset that “1 + 1 = 3” you help create a unified and synergistic environment.

Proactive communication and dialogue are essential to avoid misunderstandings and rumors that could undermine the integration process. Establishing a post-merger coaching and mentoring framework can support employees throughout the integration, driving engagement and retention.

The success of M&A transactions extends beyond financial considerations. Understanding and integrating cultural dynamics, coupled with effective coaching and mentoring, are crucial for realizing the full potential of mergers and acquisitions. By fostering a collaborative and supportive environment, companies can navigate the complexities of M&A and achieve sustainable growth and success. 

Tori Wagner is a vice president with C Squared Advisors, an advisory firm focusing on multi-unit franchisees and franchisors. She has worked with franchisees for more than a decade, advising clients through M&A transactions and raising debt and equity capital to support strategic initiatives. Contact her at 508-769-0097 or tori@c2advisorygroup.com.

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The Running of the Bull

HOW DURABLE IS 2024’S MARKET RALLY?

Written by CAROL M. SCHLEIF

“Risk means the chance of being wrong—not always in an adverse direction, but always in a direction different from what we expected.”—

Peter Bernstein

One of the most frequent questions we get from clients is, “How sustainable is the current market rally?” The question implies that the strong double-digit rise over the past six months must be too much of a good thing. But according to market technicians (those who follow chart and price movement patterns), “the trend is your friend” and a rally in progress is likely to continue in that direction, even if there is some choppiness along the way.

After a brutal 2022 with its double-digit declines in stock and bond markets, both key asset classes found their footing by late 2023, reaching new highs by year’s end. Early on in the equity market rally, the returns were generated by just a handful of stocks—the “Magnificent Seven”—all beneficiaries of the latest Wall Street darling du jour, artificial intelligence. Importantly, the rally broadened out by the end of the year, carrying wide swaths of individual stocks, industries, locales, and market capitalization tiers with it.

While an interim pullback of 10% to even 15% or more would not be unusual, we see enough underlying strength to suggest the current bull has longer to run. In fact, given a host of structural trends, a multi-year positive trend is possible. Listed below are a few key underpinnings to a positive case as well as a few potential headwinds to keep things balanced.

TAILWINDS

The economy is humming along nicely with solidly employed and spending citizens and decelerating inflation. Decelerating inflation has the U.S. Federal Reserve and other Central Banks sending strong hints that the interest-rate-hiking cycle is over. This gives creditors and businesses alike the opportunity to firm up models and makes them more likely to go forward with plans for expansion, capital expenditures, and other business combinations.

Artificial intelligence has hit the mainstream after more than a decade of experimentation by companies in a wide swath of industries, including energy, healthcare, technology, logistics, retail, investment, services, etc. Data center spending has ramped up markedly as demand for processing power has accelerated.

In addition, investors’ risk appetite has returned, and the market rally continues to broaden in scope. Potential investors are looking for lower valuations and feel comfortable going further afield in their searches.

Substantial fiscal stimulus remains in the U.S. system thanks to the CHIPS and Science Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act. Spending on many infrastructure, grid, reshoring, and other major projects is only just now starting to flow.

There have been nascent signs of life in the mergers and acquisition market. Cash coffers raised in recent years at private capital and VC firms need to be spent.

Companies continue to rightsize their businesses and innovate, as evidenced by a host of announcements during the most recent earnings season. Corporate margins remain near all-time highs as recent pricing power holds even while cost pressures lessen.

HEADWINDS

Two hot wars in critical commodity and shipping regions continue to pinch progress in select areas. Escalation, or the involvement of other regional players such as Iran, could destabilize markets.

Political strife and a long contentious presidential election cycle could impact current congressional action/inaction and weigh on investor psyches. The election itself, depending on the specific outcome, could lead to changes in corporate policy for energy, imports, immigration, and more, particularly if there is a single-party sweep of the White House and both houses of Congress.

Dislocations in some regions and segments from rolling maturity walls in various types of commercial real estate, including downtown office, multi-family, and warehouse, could prompt bumpy market behavior and/or a rethink of the “risk on” attitude.

A SUSPICION

Markets are always a complex interplay of countervailing trends. Given a preponderance of constructive secular themes, we suspect enough positives undergird the present situation to allow the bull to continue its overall positive bias for some time to come. 

Carol M. Schleif is chief investment officer at BMO Family Office, a wealth management advisory firm delivering investment management services, trust, deposit, and loan products and services through BMO Harris Bank. To learn more, visit www.bmofamilyoffice.com.

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TAKE ACTION

Franchisee engagement can affect government policy

Written by MATTHEW HALLER

One thing is certain in the world of political uncertainty: Franchisee engagement is essential to successful policy outcomes. This year has brought one of the most consequential policy battles to date for multi-unit franchisees: fighting to overturn the National Labor Relations Board’s (NLRB) expanded joint-employer standard.

This rule from the NLRB would take away franchisee autonomy, wipe out franchisee equity, and change the franchise business model as we know it. We experienced the consequences of this rule when a similar standard was issued in 2015. That’s why multi-unit franchisees have been outspoken against the rule and critical to bringing it to an end once and for all. Countless members of IFA have advocated against expanded joint employer, leading to bipartisan support for legislation to overturn the rule, which has passed the U.S. House and Senate.

The importance of multi-unit franchisees engaging in advocacy on behalf of franchising is paramount, especially with increased government and media scrutiny over the franchise business model. Multi-unit franchisees are the ultimate validator for responsible franchising

because they are already operating units of a brand and decided to put more skin in the game by adding to their portfolio.

“Firsthand experience”

At this year’s IFA Annual Convention in Phoenix, attendees heard from multi-unit giants David Humphrey of Ignite Fitness Holdings, Greg Flynn of Flynn Restaurant Group, and Jesse Keyser of Keyser Enterprises. They shared why it is a priority for them to take time away from their day-to-day jobs to get involved in government relations. Flynn said, “[Lawmakers] believe more of what you have to say because you’re doing it from firsthand experience. Advocacy is so important for our businesses. We operate in a tangle of regulations and laws that are very hard to navigate. They really affect our outcomes in important ways. Anything we can do to make our lives a little less burdened by the regulations, or even assisted by helpful legislation, has outsized impacts on our businesses.”

We continued the conversation on a panel at the recent Multi-Unit Franchising Conference with multi-brand franchisees Rob Branca and Nate Garn, who detailed the real-life

implications of the California FAST Act and the bottom-line impact of tax law changes, such as the need to reinstate the interest deduction that expired in 2022. We also talked about the importance of having relationships before you need them, which happens through persistence in advocacy over the years.

Your voice matters

Whether you’re a longtime advocacy pro or don’t know where to start, remember that your voice makes a difference, and IFA is here to support you in that journey. Whether it’s making a connection, facilitating a meeting, or sharing your message, we are working tirelessly here in Washington and around the states to protect this powerful business model, but we can’t do it without you.

Thank you to everyone who has taken the time to make a difference, including the 5,300 individuals who joined the petition to the White House urging the president to sign the legislation to overturn joint employer, and for your work to make this business model stronger. The bill would not have made it this far without your support, and these efforts are stopping this policy before it brings any more harm. Together, we can change the narrative around franchising so that lawmakers truly understand how the business model works and see all the good business owners like you do every single day. 

Matthew Haller is president and CEO of the International Franchise Association.

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A Shifting Financial Landscape

Changing rules alter franchise lending

Written by PAUL WILBUR

The landscape of franchise financing is shifting. New lenders are entering the market, and the characteristics of the average franchisee are changing. The Small Business Administration (SBA) continues to make changes, and the Federal Reserve has been responding to a unique economy.

The diversity of sectors and brands in franchising is vast, as is the type of franchisee borrower. Lenders have different relationships with single-unit, 2–10-unit, and 10–plus-unit borrowers. Emerging brands, defined as having fewer than 50 franchised units and fewer than five years in franchising, don’t have enough performance data available to help the lender feel comfortable underwriting loans but offer new opportunities for lenders to develop long-term partners as they grow. On the other hand, mature brands generally have historical performance data available but are more likely to have established relationships.

The SBA-guaranteed loans remain an essential financing source as they offer reasonable interest rates, extended repayment terms, and the ability to minimize injection while maximizing the loan amount to cover the bulk of the cost.

However, the SBA Franchise Directory was taken down in May 2023, and new standing operating procedures were released in August 2023. The SBA intended to require the lenders to judge the eligibility of any franchise loan, but many of the lenders were not prepared to make these decisions.

The lenders’ responses have varied. Some are asking franchisors to provide assurances for every loan. Some have added new fees for the borrower to cover the charges necessary for their lawyers to conduct reviews. Worst yet, some have simply decided to make fewer loans, especially to new brands with whom they have no history.

Certification

One solution for this problem that is making a difference is the Franchise Registry Eligibility

Certification. Created in consultation with some of the largest lenders in the industry, the certificate is a statement made by the franchisor that their franchise agreement meets the requirements of SBA lending. By signing the certificate, the franchisor assures the lender that loans made to their franchisees are eligible for the SBA guarantee. Importantly, completed certificates are hosted on FRANdata’s website for franchise lenders, the Franchise Registry, www.franchiseregistry.com.

All the major franchise lenders (more than 9,000 now and counting) use the Franchise Registry to access information about each brand they are lending to. Additionally, some of the largest franchise lenders now require FRANdata’s Franchisor Registry Eligibility Certification to process their loans.

FUND score

Lenders are requiring more information from borrowers and franchisors. Borrowers will need to provide historical financial statements, cash flow statements, balance sheets, and personal guarantees. Franchisors must provide franchise disclosure documents, and the FDDs should include item 19 performance statements. Some of the largest franchise lenders now rely on the FUND score to provide a

benchmark that determines current and future success. Franchisors, with their FUND score and/or bank credit report available, demonstrate to lenders a brand’s readiness to support their franchisees in getting financing.

We recently awarded the FUND TopScore Award at the Multi-Unit Franchising Conference—spotlighting the brands with the highest FUND score at the event. The TopScore FUND Award was created to highlight those brands that have risen above their peers by simplifying the financing process, which means a lower cost of capital and better financing terms for franchisees.

As the landscape of franchise financing continues to evolve, it’s clear that adaptation is critical for both lenders and franchise brands. With the vast diversity across sectors and brand types, lenders are navigating varied relationships with different kinds of franchisee borrowers. Emerging brands present opportunities for long-term partnerships, albeit with less historical performance data, while mature brands offer stability but often come with established relationships.

Despite the importance of SBA-guaranteed loans, recent changes in SBA regulations have added complexity to the lending process, prompting lenders to seek assurances and additional fees from franchisors and borrowers alike. The Franchise Registry Eligibility Certification provides lenders with confidence in SBA eligibility. It’s hosted on FRANdata’s Franchise Registry and streamlines the lending process for both parties.

With lenders now requiring extensive financial information and franchisors providing comprehensive disclosure documents, collaboration and transparency are becoming paramount in navigating the evolving landscape of franchise financing. 

Paul Wilbur is COO of FRANdata, where he is instrumental in building the company’s research and consulting framework. He manages the research, information management, marketing, and IT departments and plays an integral role in the strategic development of FRANdata’s suite of franchise solutions. Contact him at 703-740-4700.