SMALL BUSINESS
DUPLICATING SUCCESS
Arizona becomes a launching pad and testing grounds for franchises looking to grab their slice of the economic pie By JESSE A. MILLARD
D
rive down nearly any street in the Valley and you’ll find familiar signs: Blaze Pizza, Cold Stone Creamery, Five Guys, Massage Envy, McDonald’s, Orangetheory Fitness, Subway and many others. Arizona is a hotbed for franchises, which are typically associated with faraway corporations. The reality is different. Many of these franchises have local roots and they’re finding a lot of success here.
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AB | November - December 2017
Franchisors, both local and not, use Arizona as a testing ground for what they hope to be the next name brand. And local entrepreneurs take over these business models as franchisees in hopes of creating a steady flow of income for themselves. “Franchising really covers a broad spectrum of industries,” says Jeffrey H. Wolf, partner and franchising attorney at Quarles & Brady. “From food and clothing and other retail to handyman services or massage therapy services, franchising is much broader as an industry than a lot of people realize.” This year, Scottsdale-based Massage Envy celebrated its 15th year in business and announced that it will continue to expand both nationally and in Arizona. Last year, Massage Envy had plans to hire 200 employees in Arizona alone. The success of the franchise industry runs both ways — coming into Arizona and leaving Arizona. But franchises still benefit the state by offering good options for entrepreneurs and consumers. Franchisees of Scottsdale-based Amazing Lash Studio announced plans to open at least 35 studios in the Los Angeles area in the next two to four years. Outside brands like California-based Blaze Pizza, a fast-casual pizza concept that started in 2012, have already opened six franchise locations in Arizona.