MULTI-UNIT FRANCHISING April 2019

FranchisingFeature multi-unit

Top Strategies for Growth and Transformation

as a Multi-Unit Franchisee

Setting Up a Multi-Unit Opportunity Creating a Culture

That Supports Multi-Unit Franchises

a pril 2019

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what’s new!

Captain D’s Continues Aggressive Growth with New Colorado Springs Restaurant Multi-Unit Operator Expands the Fast Casual Seafood Leader’s Presence in Colorado Captain D’s, the nation’s leading fast casual seafood restaurant, recently announced the opening of its newest franchised location in Colorado Springs, Colorado.

Located at 4441 Integrity Center Point, this restaurant marks the first new Captain D’s to open in Colorado since the 1990’s. The new Colorado Springs location is owned and operated by existing multiunit operator and Vietnam War Army veteran, Lester Nowell, who has been a Captain D’s franchisee since 1986 and currently owns five restaurants throughout the greater Colorado Springs region.

Captain D’s reignited growth in Colorado comes on the heels of a successful 2018, in which the brand rolled out a new royalty incentive program and achieved its highest average number of units signed in three years. The opening of the new Colorado Springs restaurant is a direct reflection of how years of continuous success have fueled a surge in franchise development from both new and existing franchisees and accelerated its expansion throughout the U.S. In the past year, the company has opened more than a dozen new

locations and inked numerous franchise development agreements to open new restaurants in states like Florida, Mississippi, Louisiana,

Georgia, North Carolina, Illinois, Michigan and Oklahoma. With

more than 530 restaurants in 22 states, Captain D’s is the fast-casual seafood leader and number one seafood franchise in America

ranked by average unit volume. With these efforts, Captain D’s has remained true to what it does best — serving high-quality seafood with warm hospitality at an affordable price in a welcoming atmosphere.

For more information, visit www.captaindsfranchising.com.

Screenmobile goes mobile… again Screenmobile franchisees have gone mobile in more ways than one. “America’s Neighborhood Screen Store” announced today the launch of its new mobile app for franchisees that facilitates the process of finding and communicating with approved vendors.

With just one click on a smartphone or tablet, comprehensive vendor information, including pricing, is readily available to Screenmobile franchisees. The app will make it easier for the brand’s franchise partners to find the materials they need to get jobs done as efficiently as possible, taking out the guesswork and improving customer outcomes, as well.

Founded in Glendora, California in 1980, Screenmobile has successfully become the nation’s leading mobile screen service franchise, with 119 licenses across more than 25 states. Screenmobile has proudly been ranked on Entrepreneur magazine’s “Franchise 500” list for the past 14 consecutive years.

The new technology is just one of the many ways that Screenmobile is providing support to its franchisees. The app will save franchisees both time and the stress of doing this on their own, as researching vendors can be an extensive process.

Screenmobile specializes in window, door and patio porch screens, as well as solar shading products. The company is dedicated to establishing responsible, lasting partnerships with franchise owners and pledges organizational support through progressive leadership, continual training and company growth.

Notably, the app was created in-house, demonstrating the uniquely large and sophisticated technical capabilities of the franchisor.

For information about franchising with Screenmobile, visit franchise.screenmobile.com.

Franchising USA

Take 5 Oil Change Merges into the Fast Lane with Major Growth Plans for 2019 Take 5 Oil Change (Take 5), admired among drivers for its unique stay-inyour-car oil change and customercentric approach, announced today a strategic franchise growth initiative to increase its presence across the United States.

The concept’s growth during the past few years has been explosive, and Take 5 will continue to expand across the country in 2019. In the last 18 months, the brand signed multi-unit development deals for an additional 120 locations. In 2019, the oneof-a-kind oil change concept has plans to open 30 franchise stores and anticipates inking multi-unit franchise agreements representing the sale of 140 locations.

Take 5, which is backed by more than 30 years of steady growth and success, is wellpositioned for continued expansion. With more than 350 corporate and franchised locations open from Texas eastward to Virginia and north to Ohio, this year Take 5 is targeting major metropolitan markets

across the nation including Chicago, Detroit, Washington D.C. and Philadelphia, to name a few.

As Take 5 grows, it is awarding franchise opportunities to qualified multi-unit owners and groups seeking to add a successful segment to their portfolio.

The ideal franchisee is someone with

an entrepreneurial outlook who is well capitalized and has a core competency in managing a team, real estate and experience running a multi-unit business.

Individuals and groups interested in franchising with Take 5 can learn more about the brand and its available territories at www.take5franchise.com.

Pinch a Penny Continues Aggressive Texas Expansion With 17th Lone Star State Location Pinch A Penny Pool Patio and Spa, the world’s largest swimming pool retail, service, and repair franchise, reported the opening of its first San Antonio, Texas location at 22250 Bulverde Road.

The new San Antonio store is owned by first-time franchisees Aaron and Madison Thompson, who previously operated Clear Blue Pool Supply for more than five years in the same space before converting it into a Pinch A Penny retail and service location.

Pinch A Penny’s entrance into the San Antonio market is fueled by the company’s aggressive Texas growth plans and comes on the heels of its ongoing growth throughout the state. In addition to the new San Antonio store, Pinch A Penny also recently announced the opening of its latest

conversion in Kingwood, Texas, and will be accelerating its expansion strategy over the next several months in key markets in the Lone Star State.

“Our San Antonio location is a direct reflection of our innovation in action, and we look forward to continuing to expand our franchise network and helping more local business owners throughout Texas take their operations to new heights by joining the Pinch A Penny family,” said Michael Arrowsmith, Chief Development Officer of Pinch A Penny.

Pinch A Penny Pool Patio and Spa of San Antonio will serve customers MondayFriday from 10 a.m. to 7 p.m., Saturday from 9 a.m. to 5 p.m., and Sunday from 10 a.m. to 4 p.m.

For more information on the new San Antonio store, call 210-495-7777 or visit pinchapenny.com/ stores/TX/San-Antonio.

Franchising USA

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what’s new!

Tint World® Honors Franchise Owners, Plans Ahead for 2019 Success Tint World® Automotive Styling Centers™, a leading auto customization and window tinting franchise, honored their top performing franchise owners at its 11th annual International Franchise Convention held Feb. 17-19 at the Walt Disney World Swan and Dolphin Resort in Orlando Florida.

The convention featured a vendor trade show, seminars and training, while an awards banquet on Feb. 19 recognized topperforming franchises. This year’s theme was “Play to Win,” and attendees learned best practices to boost sales and run their stores more efficiently.

In 2018, Tint World® reported an increase of chainwide sales of more than 27% percent from 2017 to 2018, and an increase in store locations from 54 in 2017 to 68 in 2018. The company also entered the growing United Arab Emirates market with its first store in Dubai. There are currently 21 more locations in development across the United States and Canada.

Tim and Stacy Kjaer, co-owners of the Medford/Long Island, New York store, along with manager Kurt Kaufman were once again honored for being in the $2 Million Club. Members of the $1 Million Club included Rodney Thiel and Mike Richards, owner of the Grapevine, Texas store, Danny Shenko and Mike Rogers, of the Ft. Lauderdale, Florida, location; Acey and Kerri Light, owners of the Lubbock, Texas store and Santiago and Dominica Rojas, owners of the Massapequa Park, New York store.

Conserva Irrigation Grows National Footprint with Florida Expansion

Conserva Irrigation, the only national outdoor irrigation company founded on the concept of water conservation, signed four franchise agreements to expand the brand’s presence throughout Florida.

On the heels of Conserva’s rapid expansion in 2018, the water conservation-leader has added territories in West Palm Beach, Orlando, Brevard County, Jacksonville and St. Augustine. Joining Conserva’s industry-leading team are the following franchisees: • Yohei Castro of Conserva Irrigation West Palm Beach • Jeff Daniels of Conserva Irrigation Brevard County • Scott Mullins and Roger Mullins of Conserva Irrigation of Orlando • Vanesa and Chris Ellis of Conserva Irrigation NE Florida (Jacksonville / St. Augustine) Conserva now operates in more than 86 territories around the country, including 29 counties throughout the Sunshine State.

“We’ve had our eye on Conserva for some time and we’re excited to get started,” said Vanesa Ellis. “Conserva is helping to eliminate the water waste issue plaguing our planet. Our customers are saving money and we’re using eco-friendly, water-saving techniques to help our clientele enjoy their beautiful landscape. It’s a win for all parties involved – from an environmental and economic standpoint.”

Tint World® Automotive Styling Centers™ offer sales and installation of auto accessories, mobile electronics, audio video equipment, security systems, custom wheels and tire packages, window tinting, vehicle wraps, paint protection films, detailing services, nano ceramic coatings, maintenance and repair services, and more.

Conserva Irrigation is seeking further expansion into the Tallahassee, Tampa, Naples and Miami areas. The irrigation company is also looking for single- and multi-unit operators with a range of experience levels, as well as those looking for add-on or conversion business opportunities. Potential franchisee candidates should be willing to invest between $43,550 and $80,250. Incentives are also available for veterans, multi-territory agreements and those with existing businesses or are an employee of an existing franchisee.

For more information, visit www.tintworld.com.

For more information, visit www.conservairrigation.com.

Franchising USA

CHICKEN SALAD CHICK FUELS GROWTH IN TEXAS WITH THIRD OPENING THIS YEAR throughout DFW, including Arlington and Mansfield. A restaurant industry veteran and multi-brand operator, Ibarguengoytia has two decades of experience directing restaurant operations and owns a variety of concepts including, Bruegger’s Bagels, Cru Wine Bar and Panda Express. Following the debut in McKinney, Ibarguengoytia plans to open new restaurants in Mansfield and Arlington later this year.

Chicken Salad Chick, the nation’s only southern inspired, fast casual chicken salad restaurant concept, announced the opening of its newest location in McKinney, Texas.

Located at 3520 West University Drive, the McKinney restaurant marks the brand’s fourth in the Dallas-Fort Worth area and

third opening in Texas this year, following Chicken Salad Chick’s debut in Irving and College Park last month.

The McKinney location will be owned and operated by multi-unit franchisee Luis Ibarguengoytia of Metroplex CSC LLC, as a part of a 15-unit deal to bring Chicken Salad Chick restaurants to additional cities

The Chicken Salad Chick concept was established in 2008 by founder, Stacy Brown. With more than a dozen original chicken salad flavors as well as fresh side salads, gourmet soups, signature sandwiches and delicious desserts, Chicken Salad Chick’s robust menu offers a variety of options suitable for any guest.

Chicken Salad Chick in McKinney will be open Monday – Saturday from 10:30 a.m.

– 8:00 p.m.

For more information, visit www.chickensaladchick.com or call 214-856-3908.

Shoney’s Multi-Year Franchisee, Eric Ashford, Reopens Ashburn, Georgia Location On March 8, Past Franchisee of the Year, Eric Ashford had an opening/ ribbon cutting for Shoney’s Restaurant in Ashburn, Georgia.

Attendees included: Franchise Owners, Eric & Patrice Ashford, Mayor of Ashburn, Sandy Lumpkin, Turner County Chamber’s Board of Elections Supervisor, Jan Winter, Chairman Mike Moore, County Manager, Joe Saxon and Chamber Representative, Ashley Miller.

The event was held on Friday, March 8 at 11:00 AM. Shoney’s of Ashburn, Georgia is 840 Shoney’s Drive Ashburn, GA 31714 At age 18, Shoney’s franchisee Eric Ashford began his restaurant career washing dishes.

Over time, Eric worked his way up through the ranks with his goal to always be the best

at whatever tasks were assigned to him.

Today, Eric is the proud owner of three Shoney’s restaurants, which include the Greenville, Evergreen, Dothan, AL locations, and now Ashburn.

The Ashburn restaurant now features a newer design compared to older locations with contemporary features and a large outdoor patio that can be enclosed by sliding and garage-style glass walls for multi-seasonal use. The location now features a new menu, which will include a fully stocked fresh food bar for breakfast, lunch and dinner as well as other entrees ala cart.

Shoney’s Restaurants opened its first location in 1947 – and has become a household name for serving All-American

food for over 70 years. From starting as a single drive-in in West Virginia to now having a footprint in 17 states, Shoney’s continues to be one of the nation’s top casual dining destinations.

To learn more about becoming a Shoney’s Restaurants franchisee, please visit the SHONEY’s website at franchising.shoneys.com.

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Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

Multi-Unit Franchising Fe at u re

What is better than owning one franchise?

Owning multiple! A trending investment strategy in the franchising world is multi-unit purchasing.

What was once only an option for veteran franchisers, the idea has expanded to a wider audience because there is less of a risk and more preparation.

There had been significant growth for multi-unit franchising, with multi-unit operators now controlling over 50 percent of all franchised units, according to the International Franchise Association Education Foundation.

Franchising USA

Single-unit franchising was once the only option for most people. Those looking to start their own business would invest a lot of their savings into one business option that was safe and a guaranteed success. The multi-unit option was less likely for individuals because sometimes an initial higher investment had to be agreed upon at the beginning of the process. However, some franchises have a lot of different signing options and opportunities. Now one could gradually gain ownership of more units as they build profit, but the argument to extend must be beneficial to the franchisor. Though one unit is successful and the numbers are great, location, territory, population, and needs assessment must be taken into consideration. For example, you wouldn’t want to lose your customers in one area to fulfill another.

One can determine their choice to multiply after they have garnered enough profit or one might want to expand their unit into different areas. For example, a day care may turn into a multi-unit by adding a tutoring franchise, while some fast-food restaurants have capitalized on locations and are set up side by side in the same building. That being said, nearly 88 percent of multi-units are in one brand, which could be a sign that staying within the same brand is easier and has better results.

Another means to become a multi-unit owner is by becoming an area developer – meaning the franchisee owns and operates a region, and is responsible for the units within the area. This type of agreement will have a long-term plan specific to that region with intended numbers of locations,

areas within the territory and at what point each franchise will open.

Multi-unit is now a way for franchisees to see their worth and grow in a realistic and manageable way. Though a lot of individuals consider franchising as an opportunity to create work-life balance, a single-unit franchise allows for more hands on control. Once you enter the multi-unit franchise, your ability to dabble directly on the ground will be limited due to time constraints. Taking time to selfreflect on the business needs at a personal level is important before taking the plunge.

Would you rather be directly involved in the operations on location or would you rather use your time to manage the overall business in a multi-unit manner?

A franchisor may have demands from the franchisee as well. Taking on a lot of franchises could be a lot of work and a risk for the franchisor as well, therefore they may expect a franchisee to have experience, education or other criteria before passing over multiple keys.

Review the expectations of a franchisee

“Taking on a lot of franchises could be a lot of work and a risk for the franchisor as well, therefore they may expect a franchisee to have experience, education or other criteria before passing over multiple keys.” before investing in any franchise – though you may not see yourself owning more than one unit, multiple units could be more realistic down the road. It’s best to know what your options for growth are before your initial investment, in case your visions become bigger with time.

Beneficial for Franchisors

Food Industry A common type of multi-unit franchise is the food and beverage industry. It’s typical to see coffee shops littered throughout most major communities across America.

These types of business have multiple customers at many different times during the day.

Multi-unit industries are beneficial to franchisors as well – it’s hard to manage multiple franchisees. A person in charge of one region who is well-versed in the brand, operations, expectations and needs of that particular franchise, as well as the community, makes the job of a franchisor a lot easier. Sometimes supporting and managing multiple single-unit owners can be a time suck and exhaustion.

An assessment of the area is important before even considering reaching out about a multi-unit partnership. If there are successful small businesses that offer the same services, it might not be a great idea to start something so competitive. Have a general understanding of the community and how they shop – would they be more dedicated to a familiar brand or prefer to shop local?

Franchisors can relax with a well experienced multi-unit operator in the field – it leaves more headspace when you can rely on someone you trust. Plus, with fewer people to support, the time with franchisees is time well spent.

That being said, a multi-unit agreement in the food and beverage industry is likely the safest investment. Franchisors have perfected this process and can pretty much template out the expectations and needs for success.

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Featu re

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A background in food management would be a helpful asset, but manager experience or expertise in any customer service industry would be beneficial.

The food industry has a lot of options, consider a service that you’d enjoy pursuing as well as one that appeals to the territory you hope to run. Is this a service and product that could be multiplied many times within your region?

Some new and successful restaurants may consider franchising for the first time as a multi-unit option, so review the area and see what options are available within your preferred territory, or if there are partnerships you would like to create.

Be Cautious Though one might be excited and have the capital to invest in multi-units, if you do not have the experience and knowledge to run more than one business successfully, it’s not as simple as it looks. Without relevant expertise, tread lightly but with

Franchising USA

“A multi-unit agreement in the food and beverage industry is likely the safest investment. Franchisors have perfected this process and can pretty much template out the expectations and needs for success.”

high expectations. Ask franchisors about future options and where the opportunity lies.

For those confident in their abilities and a background in managing multiple projects, research your target, region and competition. Then review your personal needs and desires when running a multiunit industry; make sure they both match up. Ask franchisors if you can work your region as a whole unit, grow outside your region, work in different brands, access all capital for different placements.

For example, one franchise is having a down turn due to outside temporary factors: weather, construction, staff turnover, etc. Can you maneuver money and people within your region to bring success to more accessible and functioning locations?

There are a lot of hypotheticals that could be considered before taking the plunge, and whether a veteran or rookie, it’s worth trying to consider as many as possible.

Multi-unit franchises were once a game that only professionals with a lot of capital had access but now it’s anyone’s game.

Depending on the franchisor, the region, the expectations and support, multi-unit franchises could be the investment that is best for everyone involved.

ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.

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Expert Advice: Christopher Conner, President of Franchise Marketing Systems

Creating a Culture That Supports Multi-Unit Franchises

Franchising USA

Most franchisors have a vision of attracting multi-unit franchise owners to their system.

The concept of strong franchise partners who bring capital, experience, ability and industry knowledge to the brand and with each deal open three or more locations is obviously appealing.

At Franchise Marketing Systems, we primarily support new and emerging franchisors who are just launching their brand and beginning to promote the offering, and so many entrepreneurs aim to recruit multi-unit franchise owners as their primary targets. The reality is that Multi-Unit franchisees are a hot commodity. This is a select group of people who have the capital, know-how and the entrepreneurial willingness to execute on a business model and take a franchise to market in multiple locations.

In many cases, these are investors who have done this before and successfully ramped up multi-unit franchise investments. So this makes the presentation for a new franchisor a bit difficult and in most cases kind of a long shot to sell to Multi-Unit Franchise owners. But that’s not always the case.

RockBox Fitness, a new fitness brand has sold their first 30 units since launching the brand in early 2018 and the majority of these are multi-units with 2-4 locations each. Other new franchise brands have had similar results in other industries as well, Hummus Republic (24 Units), East of Chicago Pizza (76 Units) and Young Engineers (147 Units) are examples.

The key to effective Multi-Unit franchise development is to have a tight system and an excellent presentation that hits key value points relevant to these types of investors. This larger investor knows what

questions to ask and they understand what pitfalls to look for in a franchise; if you aren’t able to address these satisfactorily, you will have a tough time getting Multi’s into your franchise.

What is your franchise marketing system, how do you get customers, what are the metrics for new client sales and how much validation do you have that this can be replicated? What is your core operating technology, what business functions does it cover, how easily can it scale and report?

How has your staffing and recruitment model worked in the past, what types of employee traits and characterizes are you finding most relevant to the franchised business model and how will you support my recruitment? These are all examples of some of the questions a larger franchise investor will want answers to.

Recently, I had a meeting with a client in the medspa industry and one of our first candidates was a very large Pizza Hut Franchise owner with almost 50 stores.

Her concerns with the new franchise were primarily centered around how much proof there was that the founder was able to replicate herself. The investor wanted to see that could the franchisor duplicate herself with employees and staff first before she would invest in the franchise platform. Her questions went a lot deeper and the financial analysis was specific, to the point and aggressive. It was an incredible learning experience for the new franchisor to be able to address these questions and overcome strong objections.

If your target is to focus on Multi-Unit franchisees, you need to define your franchise system in a way that allows them to scale the brand themselves. Keep in mind that a Multi-Unit Franchisee will not be working in the locations every day, so the profit per unit will effectively shrink with management. After Royalties, Marketing Fund and other franchise operations expenses, there needs to be enough “meat on the bone” for the investor to buy into your franchise in a big way.

Systems, training and technology are also more critical to a Multi-Unit franchisee then they would be to an owner operator.

Chris Conner

Due to the scale of the business, they need to have the ability to manage the operations and get the information critical to their ability to operate more than one location. Many times, Multi’s will want to see that you as the Franchisor are operating multiple units so they can understand how effectively you have been doing this.

The upside to this approach to franchising is obvious. With the right franchise investors, your system expands, you get talented and incredible people into your brand and you scale with less partners in your franchise model. Multi-Unit Franchise buyers are in my opinion the best possible way to do franchising, but you need to have the right model and the right validation to make it happen.

Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting.

For more information on how to choose the right food service franchise, contact Chris Conner at Chris.Conner@ FMSFranchise.com www.fmsfranchise.com

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Expert Advice: Ed Yancey, Director of Franchising, B.GOOD

Top Strategies for Growth and Transformation as a Multi-Unit Franchisee As an experienced franchisee and operator, the key to making the next leap in your franchise career is ensuring you are being as deliberate and strategic in your growth as possible.

Find a brand that is doing well financially

Ed Yancey

As a multi-unit operator, you may have decided it’s the right time to transform your franchise investment with increased sales, to open new units or expand into a new brand.

This shift should be rooted in a high-level strategic vision on what you want to see as a result of your growth as a franchisee, and how you want to transform your business portfolio.

Franchising USA

This first strategy may seem like the most basic, but it also the most important. Even the most experienced and savvy owneroperator with his or her eye on growing and transforming a franchise portfolio won’t succeed without prioritizing a concept that is financially soluble. This starts with thorough research into an FDD, but expand your research to include in-depth conversations with existing franchisees. Find out exactly how they’re making their money to make sure your growth with the franchise holds the same fiscal future.

Know the leadership involved Before you buy into a concept, don’t limit your interaction to the salesperson.

You should take time to familiarize yourself with the entire leadership team – from CEO to senior VP of franchise development to the main corporate marketing team involved in franchisee support. You should know the people behind the brand and where they’re going strategically, as well as be assured you share the same values. For example, if you want to grow but the leadership team of

the franchisor is selling only one unit at a time, it might not be the fit for your vision as a multi-unit franchise owner.

Spend time getting to know the vision As you get to know the people behind a brand, you’ll develop a better sense of the overall vision of the concept. If your focus as an entrepreneur is to find ways to continue growing and transforming your franchise portfolio for success, make sure your vision as a business person aligns with the vision of the franchisor.

Your investment ratio should be 2:1 If you can find a concept that has a twoto-one sales to investment ratio, you may have found a brand that will leverage your goals as a multi-unit franchisee. For example, if a concept costs $500,000 to build, and the average unit-per-volume is $1 million, that can be a good indicator of steady financials that you should take into account alongside more intangible such as vision and values of a franchisor leadership team.

Hospitality is the foundation If your franchise concept provides a service, and in many cases a product that is experiential in nature, it is critical that anybody that’s going to grow his or her franchise footprint sees hospitality as the

foundation. Entrepreneurs may get caught up in adding more units, getting operations ironed out and identifying concrete markers of success, but if you don’t spend time hiring and putting in place operations staff with a hospitality mindset, the pure numbers may let you down. Multi-unit franchisees without a focus on hospitality may struggle to gain longstanding momentum, but may strive for significant growth in the future.

Transformation comes from culture There are certain franchise concepts that produce franchisees with the skills and tools to succeed at any franchise concept they undertake in the future.

Specific brands are able to build multi-

unit operators and teams that execute extraordinarily well, and once they head to another concept they excel because of the culture they brought along with them.

As a multi-unit franchisee looking for growth opportunities, be sure to analyze the training you’ve already received, and find ways to bring transformative qualities of your own background with you into new concepts.

Focus on your people Arguably the most important piece of growth and transformation as a franchisee with multi-unit experience and aspirations is to focus on the people you’re putting into your investment. For franchisees that have been in the business, opening and owning a franchise is like raising a child.

If you invest time and patience into its

development during the formative years, when it’s grown, you’ll be able to be proud of its success and see the fruits of that energy. It takes a lot of time, energy and resources to own a franchise, let alone multiple units or brands, and that output is only multiplied as you set your sights on growing or transforming your footprint.

Above all, keeping a keen eye on your people, coaching and building them to be successful will be the key to delivering a great guest experience everyday.

Ed Yancey, director of franchising for B.GOOD, brings more than 20 years of franchising experience to B. GOOD. B.GOOD is a Boston-based sustainably-sourced farm-to-table sensation. www.bgoodfranchising.com

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Expert Advice: Kevin Dubois, CEO, Lapels Dry Cleaning

Multiple Franchises, Multiple Locations: Making Multiple Franchise Locations —and Multiple Franchises—Work Franchising USA

One of the biggest trends in franchising is the Huband-Spokes Business Model. We’ve seen this with central commissaries in Dunkin Donuts and Panera Bread as well as many emerging franchise systems.

“Starting out with two stores puts franchise owners in the multifranchise mindset from day one. That means developing a system of management for multiple locations.” open a satellite store within 30 days of the plant’s opening.

Kevin Dubois

Few people recognize that the very first hub-and-spokes business started in the dry cleaning industry. Dry cleaning naturally lends itself to this model as it is very easy to scale a dry cleaning operation with the addition of satellite stores or stores that simply take in the dry cleaning work and send it to the plant to be processed and returned.

Our organization has followed this model and a majority of our owners are “multiunit franchisees”. Our “hub” features a state-of-the-art plant to accommodate pickup and delivery to five additional satellite stores. Those satellite stores can be opened for as little as $100k per unit.

The typical hub-and-spokes enterprise for Lapels franchise owners incorporates a market of approximately 150,000 people, when fully built out. That translates to about six towns in a suburban market and several city blocks in an urban area.

Without minimizing the effort it takes to build up the business and clientele, the idea is to put a system in place where you can operate the dry cleaning plant and manage the transportation of clothes to the satellite stores. Sometimes it’s the franchise owner who acts as the hands-on manager who manages that. In other cases, a franchise owner will hire a manager to handle the day-to-day while he/she oversees the operation from a higher level.

Many of our new owners join our organization with the idea they will have a dry cleaning plant to start and a plan to

Two of our current franchise owners

owned nearly 30 hair salon franchises

Starting out with two stores puts franchise owners in the multi-franchise mindset from day one. That means developing a system of management for multiple locations. Doing this at the beginning of their ownership gives them an advantage over another owner who enters our system with just one location. As the multilocation owner grows their business, they are in a much better position to add a third, fourth, fifth, etc. location since balancing multiple locations is how they learned the business.

prior to purchasing their dry cleaning

When you have a system in place where you can run multiple locations efficiently, you can start to see how dry cleaning owners can enjoy a high level of success.

The wheel starts with a hub and maybe a spoke or two and then continues to add more. If you have ever ridden a bicycle, you know the more spokes to the wheel, the smoother and faster the ride.

Owning multiple franchise locations is not

While the discussion here has been for dry cleaning, the hub-and-spokes model can work for a number of businesses and franchises.

franchises. While there may be some

cross-marketing opportunities, for the

most part their franchises don’t overlap.

What the franchises do share are the

systems. Each has a manager in charge

so that the franchise owner is not bogged down by the day-to-day operations and

can view both operations on a global basis.

Each also has a reporting system where the franchise owner can get a real-time report on the performance of all locations.

for the faint of heart. You must possess

a certain number of skills and character traits. You must know how to hire good people, specifically managers, develop them and keep them incentivized to

want to successfully run and grow your business. Another part of that is having

your manager be able to hire and groom potential managers.

Being tech savvy and able to use and

understand reporting applications certainly

Another reason for the success of dry cleaning owners is how nicely the industry lends itself to complementary franchises.

In other words, two different franchise types that can be run simultaneously because there’s some overlap in efforts.

Several of our franchisees own and operate multiple dry cleaning locations as well as multiple locations of other franchises. In some of those cases, the types of franchise complemented each other.

helps. You should be a multi-tasker but

For example, the owner of a restaurant franchise might be interested in owning a dry cleaning franchise. The dry cleaning franchise could provide laundry service for linens and employee uniforms. Similarly, the owner of a chain of hotels might also have an interest in a dry cleaning franchise to provide dry cleaning services to guests and staff.

To learn more about franchise

also have the ability to compartmentalize

and focus on the specific task at hand. You can jump in and help on the day-to-day,

but the big picture should be part of your every activity.

Kevin Dubois is the CEO of Lapels Dry Cleaning and co-author of Entrepreneurial Insanity in the Dry Cleaning Business. opportunities with Lapels Dry Cleaning, call toll free (866) 695-2735 or email sales@lapelsdrycleaning.com.

Additional information and up-to-date company news can also be found on the company’s Web site, www.lapelsdrycleaning.com.

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Expert Advice: Neal Courtney, CEO, Cookie Cutters Haircuts for Kids

Setting Up a Multi-Unit Opportunity

While signing any development deal is an exciting step in launching your franchise opportunity, a key to rapid growth is signing multiunit deals.

unit deals fall into the 3-10 location range can help propel your brand to new heights faster than you imagined.

It is valuable to have a variety of deal

When deciding to offer a multi-unit franchise opportunity there are a few things to consider. While it can be the key

sizes, ranging from one to 10 or more

locations, but having a majority of multi-

Franchising USA

For Cookie Cutters, our secret ingredient to success has been the amount of multiunit development deals we sign. Typically, we do not sign deals that are less than three units. Due to this business practice, we’re now the largest children’s hair salon in the competitive space.

“If you are set on offering multi-unit or area developer deals, you should offer a few incentives to better position the opportunity to a prospect.” to success and rapid growth, it can also be part of your failure if you do not prepare accordingly.

Finding the Right Partners As with anything in franchising, finding the right franchise partners is crucial. For multi-unit deals especially, you have to ensure that the franchisees will uphold their entire agreement and truly become brand advocates utilizing their large foot print. I advise you to find franchise partners who are financially ready and perhaps have business experience, whether in franchising or otherwise. These will be your best partners for those large multiunit deals.

As a caveat, it is important to source franchise partners who are passionate about the brand, especially for smaller multi-unit deals. We sign many 3-unit deals with new entrepreneurs, families and couples just looking for a new opportunity.

They become our best multi-unit franchisees because they are eager, handson and truly depend on their own success.

Multi-Unit vs. Area Developer My wife and I started out as multi-unit franchisees with Cookie Cutters, before becoming area developers and eventually purchasing the franchise from the founders and becoming the CEO and COO. The distinction between multi-unit franchisees and area developers is often murky and that’s because it depends on the specific contract.

Multi-unit franchisees have signed on to open several units, but may not have a specific territory. Area developers have signed on for a territory but may not open units directly. Multi-unit franchisees are hands-on, building the business on the ground. Area developers can serve as an extension of your development team.

They are looking for franchisees in their territory to develop it and open units. With

area developers you essentially pass on the franchise development responsibilities to them, trusting that they will open the expected units either personally or through franchise sourcing.

To determine if you will offer both development deals or one or the other, look at your expansion targets and progress.

Could you benefit from an area developer joining the team? Area developers are often local to that particular territory and can help if you are entering a new market.

Do you already have a strong presence in a market but want to add a few more stores?

A multi-unit franchisee who is looking for a new opportunity can be the perfect partner to complete a market.

This is also where the right franchise partner fits in. Often a local, experienced and financially-able franchisee will make a strong area developer candidate, while a newer entrepreneur is best suited for multiunit franchising at the beginning.

Incentives Investing in a franchise is a large commitment on its own, but investing in three, five or 10 stores is daunting, and often, unmanageable. If you are set on offering multi-unit or area developer deals, you should offer a few incentives to better position the opportunity to a prospect.

There are several ways to offer incentives, which should be determined based on the development deal you are offering.

For starters, it is common for franchisors to lower franchise fees based on the number of units a prospect is signing for.

For example, 10 percent off three-unit deals, 25 percent off five-unit deals, etc.

You may also consider slashing ad funds or royalties for some time if a franchisee opens five units within a certain time frame, for example.

For area developers, profit sharing or commissions often serve as an incentive.

Neal Courtney

Remember, an area developer is essentially an extension of your development and sales team. You want to incentivize them to go out and develop their territory, signing more deals in the process.

While it is difficult to stomach a few concessions, especially as a startup, offering incentives for multi-unit territories is beneficial in the long run.

Progress Checks Once you have everything set, it is important to check in on your multiunit franchisees and area developers to ensure they are hitting their targets in a timely fashion. You may need to adjust development agreements as time goes on or push a little in certain areas. The follow through and progress updates after a deal is signed cannot be overlooked.

Multi-unit franchise deals and area developers are key to a franchise’s success and rapid growth. Yet, with great upside, comes risk. Proceed cautiously and strategically and you will be on your way to becoming the next big thing.

Neal Courtney is the CEO of Cookie Cutters Haircuts for Kids. Prior to becoming CEO of Cookie Cutters, Neal and his wife, Alexis Courtney, were established Cookie Cutters franchisees with five locations. Neal served as the CEO of Famous Brand International, which included Mrs. Field’s Cookies and TCBY, among others. www.kidscuts.com

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Th e In t er fac e F i nan c i a l G r o up

Hard workers –

not wanted!

“If you’re an individual that is perhaps a recovering workaholic . . . then the IFG 50 – 50 franchise should be on your radar.”

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How often have you seen a headline that says hard workers are not wanted? As the franchisor of the IFG 50 – 50 Franchise from The Interface Financial Group we are actively looking for new franchisees, however we are not looking for ‘hard workers‘.

In our experience hard workers often fall into the ‘workaholic’ category – they are often re-inventors of the wheel and they invariably become obsessed with detail, often just for the sake of detail.

While these may be admirable traits in some situations, they would not represent a good fit for an Interface franchisee.

What’s wrong with hard workers and why don’t they fit for Interface? Let’s be clear, there is absolutely nothing wrong with hard work. it’s just that we don’t see the necessity for hard work when you can substitute that with smart work.

Workaholics

“We have spent many years building a business and integrating as much technology as possible to ensure that our franchisees are ‘work smart’ individuals and not ‘work hard’ individuals.”

typically between say 10 AM and 3 PM. For individuals that cannot scale down to core business hours, then this is probably not the right franchise for them.

Wheel Inventors As a franchisor we are certainly not looking for individuals that want to reinvent the wheel, and certainly not individuals that want to reinvent the franchise. The Interface Financial Group has been in operation for over 45 years and, as such, we think we have a wellhoned, developed and proven system.

That is not to say, however, that we do not continue to add improvements and technology as appropriate.

Individuals that want to reinvent the system once they have come on board invariably are not happy as a franchisee.

This applies to basically any franchise – the franchisor has done the heavy lifting and crafted the franchise, and it is now established and ready for the franchisee to utilize that developed work to build out their own franchise unit.

Detail – Detail – Detail

We have spent many years building a business and integrating as much technology as possible to ensure that our franchisees are ‘work smart’ individuals and not ‘work hard’ individuals. On a regular basis we meet potential franchisees who have a history of working 40, 50 or even 60 hours a week – and not for themselves but for somebody else.

The Interface Financial Group is engaged in a financial service known as invoice discounting. This is a simple and straightforward service whereby our franchisees, in conjunction with ourselves, purchase current quality invoices from our client companies who do not want to wait 30 – 90 days to get paid for goods or services that they have already delivered. We are in the business of cash flow acceleration.

Even working those hours for yourself is definitely outside of the Interface box. Our working smart approach is for franchisees to be engaged during what we refer to as core business hours –

Needless to say, this financial service requires much attention to detail in order that each and every transaction is documented accurately and in a timely manner. When you are working with

money, you need to be very comfortable that the system is proven and will protect both franchisee and franchisor. IFG’s 47 years of experience certainly provides that comfort zone.

So, on the one hand we say we are looking for individuals that are not obsessed with detail, but on the other hand we clearly indicate that our transaction requires much due diligence and documentation. The difference comes when we look at who is doing the paperwork involved in an invoice discounting transaction. While both parties, franchisee and franchisor, are engaged in the transaction, it is the responsibility of the franchisor to handle all the transactional paperwork from start to finish.

This means that our franchisees basically have a paperless franchise and are not caught up with the day-to-day detail of form filling, report writing, bookkeeping, etc.

If you’re an individual that is perhaps a recovering workaholic, an individual that enjoys utilizing their people-to-people skills rather than their people-to-paper skills, and if you are an individual who likes the comfort of working under the umbrella of a well-established and proven system, then the IFG 50 – 50 franchise should be on your radar.

We live and work in the age of technology, and The Interface Financial Group have built a tremendous element of technology into the IFG 50 – 50 franchise. This technology enables franchisees to work smart and not work hard, to put their capital to work rather than putting themselves to work and, naturally, to enjoy the benefits that come from such a system. www.interfacefinancial.com/franchise

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WORK SMART

NOT

HARD!

IFG 50/50 - A Different Franchise Approach!

NO

Staff Premises Long hours Paper Inventory

WE BUY INVOICES TO ACCELERATE OUR CLIENTS’ CASHFLOW! WE DO NOT LEND MONEY!

GET A FREE eBOOK www.Interfacefinancial.com/franchise

AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED

For more information contact David Banfield, President E: ifg@interfacefinancial.com