Multi - unit Franchising April 2018 Franchising USA 6#6 2

FranchisingFeature m u lt i - u n i t

april 2018

multi-unit franchises

scaling to success

Leading Australian brands heading for us shores

why not two franchises?

mu lt i-un i t FR A NCHISI NG FE AT U RE

what’s new!

UFC GYM® ANNOUNCES EXCLUSIVE PARTNERSHIP WITH TD LIFESTYLE

UFC GYM struck a 10-year partnership agreement with TD Lifestyle, plc. to bring more than 100 franchised locations to the United Kingdom and the Republic of Ireland.

UFC fighter and current UFC GYM franchisee Michael Bisping, a UK native, is partnering with TD Lifestyle to open these gyms.

The move further expands UFC GYM’s global reach, adding to its more than 150 locations in 11 countries and similar multifranchise deals announced in India and Mexico in the past year.

“This is a huge opportunity for both the UFC brand and UFC GYM, as the U.K. and Ireland markets both have significant populations of MMA fans and fitness enthusiasts,” said UFC GYM President Adam Sedlack. “This is an important step for us as we continue to bring our Train Different philosophy to fitnessminded people around the world.”

The development deal includes a mix of UFC GYM’s Signature, Core and CLASS by UFC GYM models, which provide options for locations with larger or smaller footprints.

“We’ve been working for a couple years to bring UFC GYM to England, Scotland, Wales and all of Ireland,” said TD Lifestyle

Director Joe Long. “We’ve negotiated an unprecedented partnership to launch all three club formats and our UFC GYM locations will be very different compared to anything currently being offered in the U.K. UFC GYM’s possess a versatile fitness platform while offering the highest caliber training facilities within an aspirational and high energy environment.” ufcgymfranchise.com

AtWork Group Named a Franchisee Satisfaction Award Winner AtWork Group, an award-winning national staffing franchise, has been named to Franchise Business Review’s Best Franchise Opportunities of 2018, the only franchise list based solely on reported owner satisfaction.

Franchise Business Review annually surveys approximately 30,000 franchise owners to gather data about franchisee satisfaction. The feedback from the surveyed owners is then used to select 200 franchises across four size classes to represent the best opportunities for prospective franchise owners to invest in. These four size classes are Small (under 65 locations), Medium (65 – 120 locations), Large (120 – 299 locations) and Enterprise (300+ locations) with each class being represented by 50 franchises on the list. With close to 100 locations nationwide, AtWork was selected as part of the Medium class.

“The fact that this award is based on franchisee satisfaction alone makes it incredibly special,” said Jason Leverant, president and COO of AtWork Group. “When a franchise owner is satisfied and passionate about their business, it translates directly to their daily interactions with clients and job seekers. Offering ongoing support

Franchising USA

and comprehensive training to all our franchisees is a top priority for us, and we will work hard to maintain this level of satisfaction for all our franchise owners.”

AtWork Group is currently operating in 26 U.S. states and plans to award more than 100 new franchise locations to local entrepreneurs by 2022. The company offers staffing solutions to businesses in all industries, providing quality candidates for administrative, call center, customer service, accounting and light industrial positions. Flexible employment solutions are available including temporary, temp-to-hire, payrolling and full-time placements.

For more information about franchise opportunities, visit www.atworkfranchise.com.

Subway® To Launch North America Loyalty Program That You’ll Definitely Want to Join Earn tokens for every visit and receive rewards, exclusive deals, surprises and more with Subway MyWay™ Rewards at approximately 28,500 participating restaurants Subway® asked its most dedicated customers what they want from a loyalty program. They want a program that gives them flexibility in how they earn and redeem. They want more rewards, and a surprise or two. Oh, and they want a completely personalized experience. This March, customers will get just that with Subway MyWay™ Rewards.

More than a loyalty program, Subway MyWay Rewards will redefine choice and accessibility to Subway’s more than 37 million sandwich and salad combinations.

The program will be a customized experience – from how customers join, earn and redeem, to surprise rewards and exclusive offers.

“We know time and money are important to our guests,” said Subway® Chief Digital

Officer Carissa Ganelli. “It’s important to us that we deliver a seamless, convenient experience to help our customers get what they want when they want it - and what they want is our delicious, nutritious, and affordable food.”

With an estimated 28,500 participating restaurants in the U.S. and Canada*, Subway MyWay Rewards will be the largest loyalty program for earning and redeeming rewards in the quick service restaurant industry.

Subway MyWay Rewards is part of Subway Digital’s work to transform the customer experience through an omnichannel approach, with the integration of the app, remote ordering and, in-restaurant kiosks.

For more information visit Subway.com.

Tropical Smoothie Cafe Promotes Industry Veteran Tropical Smoothie Cafe, the leading fast casual cafe concept known for its better-for-you food and smoothies with a tropical twist, announced today that industry veteran Kristi Kingery has been promoted to senior vice president of supply chain and quality assurance.

In her new role, Kingery will oversee quality assurance, supply chain and culinary for Tropical Smoothie Cafe’s more than 635 locations nationwide. She’ll also be responsible for spearheading food safety and supply chain risk initiatives by implementing new processes for auditing supplier facilities and evaluating product needs for both suppliers and distributors.

“Kristi is an integral part of our team and greatly contributed to the brand’s success

last year by optimizing our supply chain efforts,” said Mike Rotondo, CEO of Tropical Smoothie Cafe.

Kingery joined Tropical Smoothie Cafe in 2017 and in less than a year, made a significant impact on the brand’s supply chain by successfully developing and implementing a strategy to improve profitability for franchisees. These efforts resulted in savings of more than $3,000 per cafe, per year and reduced delivery case shortages by 78 percent.

“Supply chain operations are a vital part of any business and Tropical Smoothie Cafe is committed to executing the most efficient processes to increase profitability for its franchisees,” said Kingery. “Over the last year, our team has focused on

developing and implementing strategies that reduce costs, minimize risk and increase the rate of production, which ultimately contributed to the overall success of the brand and local cafes.” tropicalsmoothiefranchise.com

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 21

mu lt i-un i t FR A NCHISI NG FE AT U RE

what’s new!

CoreLife Eatery Secures Major Franchising Deal to Bolster Florida Presence area of Tampa. Franchisee William Janikies and his family-owned operation have a proven record of franchising success and a history of building and bolstering brands like Burger King, Krispy Kreme, Popeye’s and more.

“The Jan Companies began with a single Burger King in 1969 and today operates 82 Burger King units nationwide. That’s the kind of tremendous success and growth we foresee coming from this partnership,” Janikies said. “There is endless potential with a brand like CoreLife Eatery, where the focus is on flavor and delivering fast, fresh, healthy food, and we’re excited to deliver it to communities across Florida.”

For CoreLife Eatery, an active lifestyle restaurant offering a variety of greens, grains and broth-based dishes, the future is

This agreement is in addition to two large development deals CoreLife Eatery has recently cemented in Cleveland, Ohio and Raleigh, North Carolina.

business headquartered in Rhode Island. The Jan Companies

CoreLife Eatery, which offers a wide variety of fresh ingredients that are transformed into custom-created dishes, has experienced tremendous and rapid growth since opening its first restaurant in 2015. CoreLife Eatery currently has 27 operating eateries and is on track to open 300 restaurants within the next five years.

the first eatery on track to open this August in the Carrollwood

For more information on franchising opportunities, please visit www.corelifeeatery.com/franchising.

looking bright in the Sunshine State.

CoreLife Eatery recently signed a 32 restaurant development

agreement with The Jan Companies, a second-generation family have an aggressive plan for opening restaurants in Florida, with

British Swim School Franchisee Celebrates Platinum Anniversary Celebrating a platinum anniversary (that’s 20 years!) with franchise brand British Swim School is Antony White, who originally hails from the UK and has two territories of the renowned swim school in the Chicago and North Shore areas of Illinois.

“I have been working with British Swim School since the late 90s and was instrumental in the whole franchise process – it is a product and service I very much believe in.”

As the brand progressed further toward the franchising route, White recognized it was something he wanted to remain a part of, because he loved (and still does) the day-to-day that comes with working for himself, while contributing to a brand that

Franchising USA

is serving the greater good.

“I’ve always loved the day-to-day operations of the swim school – greeting parents and students, working closely with my team, being there at the helm guiding my business how I want.” If he could leave others with any one piece of advice, it would be to find something they are passionate about, and turn it into a career.

To celebrate the milestone, White’s agenda includes developing a stronger, deeper relationship with the Illinois community – working to spread British Swim School’s ultimate mission of educating on the essential, life-saving skill that is swimming and water safety. franchise.britishswimschool.com

partnership with Pilot Flying J Travel Centers in 2017, accounting for five of the total 12 locations open throughout the year, with a commitment for an additional 20 in 2018.

Dunkin Donuts Expands Non-Traditional Portfolio Dunkin’ Donuts, America’s all-day, everyday stop for coffee and baked goods, announced earlier this year that its franchisees opened more than 86 new non-traditional locations across the country in 2017.

Being a leader in convenience, the brand’s franchisees continue to open restaurants throughout the hotel sector, including a Great Wolf Lodge location in Bloomington, Minnesota and two

restaurants in the Hard Rock Hotel & Casino located in Las Vegas and Biloxi.

Other notable non-traditional partnerships throughout 2017 include a three-unit deal with nationally recognized grocer Price Chopper in Kansas and the opening of 12 rest stop and travel center restaurants across the country.

The brands franchisees opened a total of 12 travel center restaurants around the country, also significantly increasing its

Dunkin’ Donuts continued to expand its partnership with Great Wolf Lodge in 2017, opening a new restaurant at its Minnesota resort in December, marking the tenth restaurant to open under a franchise agreement between Dunkin’ Donuts and Great Wolf Resorts. Additional locations are slated to debut this summer, one in the outskirts of Atlanta and another just outside of Chicago.

In 2017, Dunkin’ Donuts franchisee opened its first non-traditional location at the University of Hawaii in October.

A total of 8 restaurants on college and university campuses opened during 2017.

Dunkin’ Donuts’ non-traditional offerings are located at a variety of different venues from airports, mass transportation terminals, casinos, resorts, hospitals, stadiums, grocery stores, military bases, and universities.

To learn more about Dunkin’ Donuts, visit www.DunkinDonuts.com.

MOSQUITO SQUAD LAUNCHES INTERNATIONAL MARKETS IN EAST AFRICA

Mosquito Squad, the largest and most trusted mosquito and tick control franchise in North America, has announced its global expansion with the launch of its first operation in East Africa through an agreement that covers Kenya, Uganda and Tanzania.

These are the first international markets for Mosquito Squad, which currently has more than 240 operating territories throughout the U.S. and Puerto Rico. Owned and operated by Fred Rariewa, Mosquito Squad will initially focus on Nairobi, Kenya by providing mosquito protection to areas where pest-born illnesses are prevalent and growing.

“We are thrilled to have selected a talented operator to represent

our brand and provide Mosquito Squad service in this important international market. Our presence in East Africa will provide an important community service by helping to prevent citizens in Kenya, Uganda and Tanzania from being affected by dangerous mosquito-borne illnesses,” said Chris Grandpre, chairman and chief executive officer of Outdoor Living Brands, parent company of Mosquito Squad. “As a long-time financial supporter of Malaria No More, we’ve worked for years to educate and prevent the spread of malaria throughout Africa where more than 425,000 children die every year from this preventable and treatable disease.

By bringing our mosquito control services directly to the people of East Africa, we’ll have the opportunity to make an even greater impact.”

By providing useful mosquito management knowledge and consistently delivering exceptional services, Mosquito Squad has earned the trust of consumers and continues to experience rapid growth as a result, with over 240 locations nationwide. www.MosquitoSquadFranchise.com

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 23

mu lt i-un i t FR A NCHISI NG FE AT U RE

Cover Story: Retail Food Group (RFG)

Leading Australian brands heading for US shores Retail Food Group (RFG) is a global food and beverage company, with a network of more than 2,400 outlets across nine Brand Systems spanning over 80 licensed international territories.

From humble beginnings in 1989 as the owner and manager of around 50 Donut King and bb’s Café stores, RFG is now Australia’s largest multi-brand retail food franchise owner, developer and manager.

RFG has its sights set on expanding its international footprint, with a focus on introducing some of its well-known and muchloved food retail brands – including Donut King, Crust Gourmet Pizza Bar, Brumby’s Bakery, Michel’s Patisserie and Pizza Capers – to American shores.

RFG’s presence in America is already represented by its gourmet specialty coffee brands, Gloria Jean’s Coffees, which currently has over 65 coffee houses and It’s A Grind, which has 20-stores in California and two new stores opening over the next two months.

Gloria Jean’s Coffees is a brand success story. After opening its first coffee house in Australia in 1996, the Gloria Jean’s Coffees business model was perfected for international growth

Franchising USA

and the footprint has grown to approximately 900 coffee houses worldwide, across over 50 licensed territories.

Keeping the brand fresh and relevant to consumers in an ever changing and dynamic retail environment is critical to RFG’s success. RFG has invested considerable resources into researching the ‘Gloria Jean’s of the future’, and in February this year launched a complete brand refresh in Sydney Australia, which is currently being rigorously tested before being rolled-out internationally.

The new brand positioning includes a new logo, store design, coffee blends, menu, uniform and more. “We have completed reviewed all aspects of the value chain to ensure that Gloria Jean’s will remain a forerunner in coffee franchising in the future,” said RFG’s Chief Executive – International, Mike Gilbert.

“We are particularly excited about launching the Gloria Jean’s Coffee rebrand into the USA market, as we believe it has a unique positioning and modern feel from the store design to the menu, that US consumers will love,” said RFG’s USA President, Sam Ferreira.

The Company is also a roaster and supplier of high-quality coffee and affiliated products, operating four coffee roasting facilities, with a fifth under development in the Middle East, that supply Australian and international markets through a suite of wholesale coffee brands.

“Our Brand Systems are leaders in the food retail space in Australia, and they’re ripe for international growth.” - Sam Ferreira

“Sourcing, blending and roasting our own coffee gives us great control over one of the key success factors to our brands, being of course coffee,” said Mr Ferreira. “We have our own coffee roasting facility here in LA which roasts to order, ensuring that high quality espresso coffee is delivered to our consumers time and time again”.

RFG’s international expansion model is based on recruiting Master Franchise Partners or Area Developers who purchase a license to develop a certain Brand System in a defined territory.

This model provides the Company and local partners with the opportunity to forge sustainable partnerships to successfully develop RFG’s Brand Systems internationally.

“RFG considers its international licensees more like business partners. Our international model is collaborative and supportive, and we work with our partners on a broad range of operational matters, including development schedules and growth strategies, as well as marketing and training,” said Mr. Gilbert.

“Our Brand Systems are leaders in the food retail space in Australia, and they’re ripe for international growth,” he added.

“While we’re always looking for exciting, uncharted new territories, we have already identified the US market as a fantastic fit for us,” said Mr Ferreira. “We’re currently brewing plans to expand both our existing Gloria Jean’s Coffees presence here and bring some of our other brands to the US for the first time.”

“While we’re always looking for exciting, uncharted new territories, we have already identified the US market as a fantastic fit for us,” said Mr Ferreira. “We’re currently brewing plans to expand both our existing Gloria Jean’s Coffees and It’s A Grind brand presence here, and bring some of our other brands to the US for the first time.”

Donut King, Brumby’s Bakery and Crust Gourmet Pizza Bar are just three core brands that RFG have identified as being ripe for global expansion. All three brands have a strong heritage and are proven franchise models in their home market.

“Donut King and Crust have recently been licensed to new partners in the UK market with outlets set to open in 2018,”

“We are particularly excited about launching the Gloria Jean’s Coffee rebrand into the USA market, as we believe it has a unique positioning and modern feel from the store design to the menu, that US consumers will love.” - Sam Ferreira said Mike Gilbert, adding “We are expecting strong growth of these leading brands across the UK and into Europe and are excited to be offering them to the US market as well.”

RFG’s President, USA, Sam Ferreira, said the impact of RFG’s expertise in terms of retail, franchising and coffee is instrumental to the brand’s strength.

“The backing provided by RFG is world class,” he said. “They have been invaluable in creating a holistic service and support package for new Master and Area Partners joining any one of our nine brand systems, including proven methods in training, marketing, procurement and menu innovation, all of which are centered on supporting Masters in their operations.” www.rfgbrands.com

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 25

mu lt i-un i t FR A NCHISI NG FE AT U RE

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 FEATURE

Multi-Unit Franchising is a simple concept in which a franchisee owns and operates multiple units within the same area.

Sometimes this process is agreed upon immediately and a slow roll out of each unit is scheduled and organized between the

franchisee and franchisor. While other times, a franchisee has already managed a unit and wants to further their profit and responsibility by extending their operations.

Sometimes a franchisee can operated numerous franchises by

applying their knowledge and abilities to each unit successfully and establishing a trustworthy management team to run each business.

Franchising USA

It’s become a more popular concept over the years; however, it takes a lot of investment and funding. If prepared properly, franchisees can use extra profit from one franchise to invest in another.

Multi-unit franchise corporations usually only align themselves with successful and well-branded franchises, which makes the success rate more guaranteed and the reliability secured. It’s unlikely that a multi-unit investment would be with an unstable company.

“For those comfortable in their franchise success and looking for opportunity to grow, a multi-unit franchise is one of the easiest and most profitable options, allowing for an eventual work-life balance.”

When considering a franchise investment, it would be wise to ask if the option of multi-unit is available and what the opportunities are for growth and extension before investing. Once a franchisee has a pretty good handle on a single unit, multiplying their investment may be a simple and easy transition, depending on the franchisor.

One of the downfalls of multi-unit franchising is definitely the small niche of opportunity. You can’t generate multiple businesses in a specific area when the demand is not available. Sometimes the opportunity you’re looking for might not be in the desired location. Early research in your territory, as well as investigation into the type of multi-unit franchise you’re interested in would be the best first step.

Consider whether or not this franchise has performed multi-unit franchises successfully in the past and research how well it performed in comparison to others multi-unit franchises.

New and Fast Moving Brands A great business opportunity for those interested in multi-unit franchising is a new and upcoming business. A small business that found exceptional growth in the first year and began franchising may be looking for someone to manage the opening of multiple units immediately.

A lot of restaurants and coffee shop start off small and find their product gains momentum through word of mouth. After a few locations are opened there is a large demand to keep the businesses growing in more locations. This start up gig is a great way to begin multi-unit franchising, if

that is what the franchisor is considering.

The business may need a quick turnover that demands back-to-back openings as well as an outside source to franchise the business.

consider expansion when the first unit is functioning on it’s own and successfully.

You must be confident in the employees you have hired before moving forward with more investments.

This type of multi-unit may be spread over many locations, which may mean some of your time would be on the road.

Usually a franchisee takes their current brand and franchises it at another location. This is the easiest transition for franchisees because they are familiar with the operating system and product at hand, plus it’s likely that the franchisor was planning to extend the business in other locations.

Though most franchises likely have a great work life balance, a new franchise with multi-unit ownership may have higher hands-on expectations. The investment and hard work would be heavy at the beginning, eventually it would have a great pay off.

Taking the time and effort in talent would be extremely helpful. A reliable and experienced staff placed at each unit allows the franchisee to step away and manage all his franchises from a distance.

Same Brand Units Nearly 88 percent of multi-unit operators are in one brand. In order to expand the units, franchisees most prove that the opening of a new location would not hinder their current business. They must also show that they can operate both locations successfully, possibly in different territories. It’s important to only

Franchisors also benefit from having the same franchisee further their brand. Once a franchisor has established a reliable source that can extend their profit and guarantee success, it’s an easy investment on their end as well.

Restaurants Multi-unit owners now control over 75 percent of franchise restaurants, one of the most popular types of business franchises.

Restaurants are one of the easiest franchises to start, though it comes with a hefty investment price tag – it is likely a guaranteed success. Restaurants have figured out operating systems, marketing, locations and all the many means involved

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 27

mu lt i-un i t FR A NCHISI NG FE AT U RE

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

“It’s important to only consider expansion when the first unit is functioning on it’s own and successfully.

You must be confident in the employees you have hired before moving forward with more investments.” in a successful business. It’s one of the first forms of franchise and a lot of restaurants eventually turn franchise depending on demand.

For those interested in multi-unit franchise, it’s easy to invest in numerous restaurants within your own territory, but also running a specific restaurant and later setting it up in another location would be an easy transition. It allows for same brand ownership or different brand ownership.

Franchise restaurants don’t leave a lot of room for creativity; they follow a format no matter where they are located. Menus are the same, greetings have the same script, and even layouts can be similar.

Though that consistency can be extremely beneficial to those interested in managing multiple units, it makes for a very easy transition.

Research and conversation has to happen before considering a restaurant franchise.

Franchising USA

There are so many options that it’s best to take advantage of the wide variety of choice. Some options are extremely successful, while some garner a large profit, while others are easy to run.

Develop an understanding of possible choices, while also creating a support group of multi-unit franchisors as a guide.

Restaurants tend to have a high turnover rate, and multi-unit franchisees depend on their staff to mainly run the floor. Be prepared to jump in once and awhile when short staffed or when employees are newly trained.

Multi-Unit franchises are a great way to invest in multiple businesses with ease and support. The idea has gained more traction over the last century with 53 percent of U.S. franchise units making it a growing trend.

It takes a lot of funding, as well as experience and research before being able

to continue the growth into a multi-unit franchise. It’s not going to be much of an option at the beginning of a franchisee’s career but worth consideration at initial investment.

For those comfortable in their franchise success and looking for opportunity to grow, a multi-unit franchise is one of the easiest and most profitable options, allowing for an eventual work-life balance.

It’s a growing form of franchise that helps franchisees continue their own entrepreneurial growth as well.

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.

Look out for our next special feature:

automotive FRANCHISING

The public and policymakers need to understand franchising.

Our purpose

busi n ess serv ices FR A NCHISI NG FE AT U RE

Page 29

@OurFranchise is an industry-wide campaign created to spread the word about the value of franchising and share the stories of men and women just like you, who are leading the way as franchisors, franchisees, and franchise employees. The franchise business model has been proven time and time again to work, but it’s threatened when the public and politicians don’t understand how it operates to benefit local, independent franchise establishment owners and their communities. Putting a spotlight on real leaders succeeding with the franchise model is how we’ll ensure franchising is stronger than ever before.

Follow us

Share the tools and resources offered on AtOurFranchise.org/resources

Help us keep the momentum going

Since our launch in June 2016, we’ve reached 1.7 million people through outreach efforts, including events in key cities and states, where we spoke directly with business owners, employees, policymakers, and the media. Additionally, we’ve reached people across America through our website and social media channels, digital advertisements, and the promotion of We the Franchisees on Politico – but there is much more work to do. As a franchisor, franchisee, or franchise vendor, you are a leader in your community – and we need your support, now more than ever.

You benefit by joining

By joining @OurFranchise, you’ll get access to exclusive stories and resources that can help grow your franchise business, educate employees at all levels about the franchise business model, and share the economic importance of franchising with consumers. You will also have the opportunity to share your franchise success story with your peers.

Visit AtOurFranchise.org Contact Erica Farage, Senior Director of Political Affairs and Grassroots Advocacy and Multi-Unit Franchisee Engagement International Franchise Association efarage@franchise.org (202) 662-0760

b

a

x

Our Franchise

@OurFranchise

@OurFranchise

This is just the beginning

Make sure you stay up to date with the campaign’s latest efforts through email updates and social media.

Visit our website to read and share the latest stories of franchisors and franchisees making an impact in their communities. Become a franchise advocate to help ensure Americans, now and in the future, have the opportunity to start franchise businesses. Take the lead today!

mu lt i-un i t FR A NCHISI NG FE AT U RE

Expert Advice: Christopher Conner, President of Franchise Marketing Systems

Multi-Unit Franchis Scaling to Success In Franchising, the pinnacle of success as a franchisee is the multi-unit franchise owner. Multi-unit franchising is not for the faint of heart, but more so the hardened, business savvy investor; the courageous business leader who shows no fear.

Franchising USA

The difference between a single unit franchise owner and a multi-unit franchise owner is the focus on scalability. Yes, multi-unit franchise owners have access to more capital and generally more business acumen, but what really separates them from those of us who get stuck as operators is the never-ending commitment to scaling a business model.

“Multi-unit franchisees . . . invest in people and look to their staff as being an asset, not an expense. They believe in culture, vision, brand the bigger picture.” unit franchisees and others get stuck in a single location, essentially buying a job?

First, the Multi-unit franchisee is not looking at a daily Profit and Loss Statement. They manage with a longer term approach to the business, making decisions initially week to week, then month to month, then quarter to quarter.

There is planning incorporated into decision making and in how to manage the business in order to avoid short term “fires” and obstacles that prevent the business from achieving success. A successful multi-unit owner manages from a position of strategy as opposed to fear.

ses:

As a business owner, it many times is easy to get caught up in the small details of what makes the business work day to day and be pulled into $10/hour positions, flipping burgers or mopping the halls.

Multi-unit franchisees don’t even let this be a consideration, although they focus on details, they are willing to sacrifice short time profitability for long term gains in the business. They invest in people and look to their staff as being an asset, not an expense. They believe in culture, vision, brand the bigger picture.

So why do some people succeed as multi-

Second, the multi-unit franchise owner puts an extreme emphasis on systems and structure as opposed to just dollars.

Operational, Marketing and Technology systems are imperative to a successful multi-unit franchise investment. There is a core focus and belief that with good, proven systems and structure, the profitability will soon follow,;short term profitability without systems doesn’t last.

When investing in franchises, the training platform, KPI’s, unit level performance, franchise marketing systems and other mechanisms are what drive a franchise investment decision, not short term fads.

Third, the multi-unit franchisee appreciates leadership and vision from the franchisor. They want to know, understand and believe in 5, 10 and 20 year plans for the business. They need to see and feel that the franchisor is motivated by long-term success that matches their commitment to the brand. Good multi-unit franchisees generally do not make quick decisions and instead evaluate options carefully and with great scrutiny.

Once a strong franchise investment is made, they continue to invest in that brand now that the unit metrics are understood

and the business model is proven. VR Junkies, a virtual reality franchise based in Utah recently sold a Multi-unit franchise offering to Martin Hall, a proven and successful Multi-unit franchise and business owner. The plans include the development of 15 units, with groups of 5 units each to prove consistency. With each five unit group succeeding, the next group will be opened and developed.

What attracted Mr. Hall to the VR Junkies brand was the unique market positioning in virtual reality, strong operating systems, simple operating model and a leadership team focused on capturing market share in virtual reality.

Multi-unit franchise ownership requires an ability to pull away from emotionallydriven business decision making. Business and franchise owners who act out of fear or emotional swings have a tough time getting out of the day to day business and scaling. The long term benefits of multiunit franchising have been proven to be enormously profitable for some – in fact, people have launched public companies of multi-unit franchise chains and build massive organizations using the model.

When it comes to franchising, it pays to think from the perspective of scale.

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. www.franchisemarketingsystems.com

Chris Conner

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 31

mu lt i-un i t FR A NCHISI NG FE AT U RE

Expert Advice: Peter Hans, President, Discovery Map International

Why Not Two Franchises?

“Just remember that the first order of business is always getting franchise number one up and running smoothly— and profitably--before considering expansion or another franchise opportunity.”

Peter Hans

“Let’s play two”. That’s how baseball Hall of Famer Ernie Banks responded to a beautiful day for baseball. That’s also the thought process of many franchise owners whose businesses get off to a good start.

Yet before planning a second franchise, it’s important for franchise owners to make sure some ducks are in a row with the first.

Franchising USA

If you’re a location-based business—e.g. dry cleaner, restaurant, etc.—you want to get through your grand opening and be turning a profit. You want to have a good sense of the buzz about your business from customers. Comments like, “we have so desperately needed this service in this area” or “I wish we had one of these in my town” or something along those lines are things you want to note.

Most importantly, you want to smooth out the operational hiccups before entertaining expansion plans. Some things you will want to consider: • What’s the current state of the commercial real estate market? – Are rents currently high? You may want to wait on expansion. Maybe there’s an area you are targeting that’s on the rise and you can get in low?

• Do you have enough employees?

If you’re hands-on in your current franchise, how can you be two places at once? The answer is you can’t. That’s why having reliable and dependable staff is a must to help run at least one of your locations. Or maybe your current

staff will be part of both locations? You may have to hire for both locations.

• What about a loan? Will the bank that helped you secure funding work with you again? If not, what’s your alternative?

• Family support – Many franchise opportunities are quite demanding and can impose on family time. Is your family okay with that? Will they be part of your staff/support for an additional location? This can be a particularly important conversation if your spouse or older children want to help but have other interests they want to pursue.

Considering these things is very important before taking a next step.

For home-based franchises, you don’t have the challenge of finding a second physical location. You do need to have your operations and systems in place to accommodate the additional work.

For example, let’s say a franchisee has Springfield, Massachusetts as its territory and wants to add Amherst, Massachusetts.

Much like a franchise with a storefront, the systems need to be in place to make

“Before planning a second franchise, it’s important for franchise owners to make sure some ducks are in a row with the first.”

the first franchise successful. That could be something as simple as a set schedule: Mondays and Thursdays are for sales calls; Tuesday is for administrative work; Wednesdays are for networking groups; Fridays are to visit existing clients, etc.

If the Springfield, Massachusetts franchise owner wants to add the Amherst, Massachusetts franchise, he/she will have to first plan how to manage the same activities for two locations. It also presumes the Springfield territory is up and running smoothly with enough revenue to sustain things while building up Amherst.

franchise owner is to purchase a different franchise that complements your current one. For example, the restaurant owner purchases a dry-cleaning franchise. In addition to the restaurant being able to utilize the services of the dry-cleaning franchise, there are cross promotional opportunities (e.g. dry-cleaning customers receive coupons off their next meal at Restaurant Y; Restaurant Y customers receive 10 percent of their next drycleaning order).

unit franchise owner, there are many ways to skin the proverbial cat. Just remember that the first order of business is always getting franchise number one up and running smoothly—and profitably--before considering expansion or another franchise opportunity.

Now, the presumption is that the franchise owner takes on all the duties for both locations. That might not be plausible.

Maybe the franchise owner hires a bookkeeper or other back office staff, so he/she can focus on what he/she does best, sell. When it comes to being a multi-unit franchise owner, there are many ways to get the job done.

Different franchise opportunities can be complementary in other ways as well. For example, our franchise owners often work seasonally. So, they work hard for four to six months and can ease up for the rest of the year. That means they could pursue additional locations within our system and set it up to run when the other location is slow. Or, they could find a different franchise opportunity to run year-round and figure out a system for the months when our franchise is front and center.

Peter Hans has served as the President of Discovery Map International since 2005. In addition, he is a member of and has had an interest in Flagship Associates, LLC, which is a Vermont limited liability company and real estate holding company in Waitsfield, Vermont, from July 2003 to the present as well as being a managing member of Berkley Holdings, LLC, a Waitsfield, Vermont limited liability company and real estate holding company, from June 2007 to the present. In 2017, Hans became a partner in Discovery Map POI, a franchisor of map locations across Slovenia and into neighboring countries across Europe.

Another way to become a multi-unit

As you can see, if you want to be a multi-

www.discoverymap.com

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 33

mu lt i-un i t FR A NCHISI NG FE AT U RE

Expert Advice: Josh Allen, Director of Marketing at Location3

It is more important than ever for franchise brands to take the reins in managing the presence of every one of their locations online.

As mobile adoption rates and online user activity on mobile devices continue to grow at an exponential rate, franchise businesses have an opportunity to capture the interest of potential customers on mobile and drive them in-store to make a purchase. However, in order to maximize the reach of your business locations online, it’s important to consider the key factors that make them discoverable by consumers.

Your Local Digital Footprint

Are Your Franchise Locations Discoverable Online?

From a local search marketing (non-paid) perspective, these factors are broken down into two primary categories: (1.)

Local Business Listings (i.e. Google My Business / Google Maps) and (2.) Local Organic Search Results. Let’s take a look at some of the fundamental tactics your franchise can start implementing today within each of these categories to ensure your brand and locations are front and center in capturing the attention of online users.

Franchising USA

“In addition to local business listings, your franchises have the opportunity to rank prominently in local organic search results if your website and franchise pages are structured properly.”

Local Business Listings Each year, a group of digital and local search marketing industry experts and thought leaders compile the definitive report outlining the top factors that contribute to your business’ ranking in search engines like Google, and other directories. It’s no secret that the actual proximity of the online user to your physical business has a significant impact on whether or not your location appears in the user’s results. However, proximity isn’t the only factor that impacts how/ when/where your franchise shows up.

First and foremost, it’s critical that the primary “NAP” information (Name, Address, Phone) is accurate for each and every one of your franchises. That’s simply table stakes for ranking well.

Second, it’s important that your business locations are categorized accurately for every location using Google My Business Categories. In selecting categories, it’s important to be specific while also ensuring they are representative of your actual business. For example, instead of selecting a broader category like “Salon”, it may be more impactful to select “Dry Bar” or “Nail salon” instead. Because you can select more than one category, the primary category of choice should be most relevant. If you have a coffee shop that is an extension of your restaurant, you might choose “Family restaurant” as your primary category and “coffee shop” as an additional category. After populating your franchise business listings with the correct NAP information and accurately categorizing each one, it’s important to incorporate robust content like hours of operation, brand logo, website URL, quality images, and other information that can serve to create a quality experience for your potential customer. Speaking of

the customer, don’t forget to regularly read and respond to your customer reviews! Not only is this a best practice for improved customer service, data shows that a higher rate of positive reviews and a higher rate of review response by the franchise owner can help your listings rank higher and ahead of your competition.

Local Organic Search Results In addition to local business listings, your franchises have the opportunity to rank prominently in local organic search results if your website and franchise pages are structured properly. A comprehensive Local SEO strategy is needed to establish a sound technical foundation for your website, while also incorporating franchise location pages and hyper-local content that is relevant to users, market-by-market.

If you’re planning to create location pages, it’s important to build them as an extension of your brand website using what is called a “Subdirectory” (NOT “Subdomain”.) An example of what this looks like from a URL structure: www. mybrand.com/denver/store-123. The reason for using a Subdirectory is that it allows each franchise page to leverage the pre-existing search ranking authority already established by the brand website URL. Subdomain architecture (i.e. denver.mybrand.com) simply does not allow your location pages to tap into this valuable ranking factor. In addition to site hierarchy, it’s important to approach each franchise page much like a business listing and firmly establish local content like NAP information, hours of operation and specific products/services offered at each franchise. You can then layer on content that is more personalized for each franchise like specific menu information, community engagements and more. Lastly,

Josh Allen

once your location pages are live, be sure to take those unique location URLs and implement them on your business listings for even greater local search integration.

In Summary When it comes to helping your franchises capture the valuable attention of online consumers, start by focusing on your Local Business Listings and developing franchise location pages that are not only an extension of your website, but truly an extension of your business. In using a consistent approach to implementing key business information system-wide, while also providing a localized experience for each franchise when appropriate, you can own more search result real estate and help send customers to your business before they find the competition.

As Director of Marketing, Josh Allen is responsible for planning, developing and managing Location3 and LOCALACT brand strategies, with a focus on establishing new business partnerships among franchise systems and multilocation brands. He also works with Location3 client partners to establish key initiatives for increased franchise engagement and growth. He is an active member of the International Franchise Association and has previously been featured by the American Marketing Association, Franchise Update Media, MediaPost and more discussing franchise digital marketing strategy. www.location3.com/franchise-digitalmarketing

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 35

mu lt i-un i t FR A NCHISI NG FE AT U RE

Expert Advice: Alex Wilkes, General Manager, Pearle Vision

Growing your Fra with Area Development Programs

Franchise growth will remain a top priority for brands year after year, but strategies vary among franchisors. Although there are several ways to ignite expansion, a well-planned area development program has the potential to propel large-scale growth throughout a sustained period of time.

Franchising USA

Rather than signing one unit or two unit deals, a traditional area development program involves awarding large territories for individual franchisees to open multiple locations within the regions they are granted rights to develop.

A little more than a year ago, after several months of planning our comprehensive area development go-to market strategy, Pearle Vision introduced the program to our franchise system as well as our new franchisee prospects. We implemented a more traditional program, the type that awards franchisees the opportunity to own several locations within the region they obtain the rights to develop. As we ignite expansion through carefully selected strategic growth initiatives, we

are encouraged by the initial success and positive response to our area development program. Now, we are expanding on the program, as it has become one of our most important vehicles for growth.

Similar to Pearle Vision, as your brand continues to evolve, here are three notable benefits you may also find from incorporating an area development program into your franchise growth strategy.

1. Unified Operations In business, it’s imperative to have consistency across all aspects of operations. Though, in franchising, uniformity often becomes more difficult to control as more independent business

anchise “An area development plan can facilitate operational consistency by offering franchisors a smoother training process and ensuring there is a well-structured business plan put in place across a particular region.”

Alex Wilkes

owners are added to the mix. An area development plan can facilitate operational consistency by offering franchisors a smoother training process and ensuring there is a well-structured business plan put in place across a particular region. By working with a single operator or operator team as an area developer, your franchise can better maintain an operational consistency in high-quality customer experience at the local level, which can have a positive effect on the brand’s reputation as a whole.

Our area development program was designed to be an enticing “win-win” for the area developer and the brand. In exchange for a per-unit development fee, area developers receive limited exclusive rights to their territory and a reduced royalty fee, which provides the potential for a strong return on their investment.

We are able to offer flexible development plans of five to 20-units. Having enticing incentives helps franchisors better attract developers who can grow a single region and enhance operational consistency.

2. Qualified Franchise Partners to Depend On In order to maintain a strong culture across the franchise system, franchisors only seek individuals that fit their brand’s criteria. If your company has unique requirements for prospective partners, such as industry certifications or notable net worth, your franchise may have a

smaller pool of qualified candidates. Thus, if you’re signing a skilled franchisee that fits your criteria and has an eagerness to grow the brand, your system can benefit from offering the individual an area development deal to open multiple locations across a larger territory.

Recognizing the benefits of reserving large geographic territories through our area development program, two of our seasoned franchisees were early adopters who now own large territories in the Phoenix and Tampa markets. As an area developer, they have an opportunity to maintain a growth schedule and reach their entrepreneurial ambitions.

3. Attainable Growth Projections Once you’ve secured a dependable area developer to grow a particular region, your team will spend less time vetting through additional prospective franchise partners for that area. With talented area developers in place, franchisor teams can focus on developing additional new territories and dedicate resources to other needs within the company. In turn, the franchise will likely have less time between location openings in the area developers region and you’ll be able be to establish a routine and solid relationship with the franchisee. Plus, when only one franchisee is involved in the development schedule, the owner will often choose to work with the same set of local vendors throughout the build-out process, from site selection to opening day.

Ideally, if a lesser number of third parties are added into the mix, the projected growth plan stays on course. As your area developer reaches the fourth or fifth location, the procedure becomes simpler for everyone involved.

Our strategy to award large development territories to skilled franchisees has provided steady, predictable expansion in communities through our key growth markets. In just over a year, our area developers in Tampa and Phoenix are already benefiting from the support structures, decreased royalties and growth schedules as they continue to open additional units in their region.

As you strategize your own development plans, I encourage you to further contemplate area development programs to drive your franchise’s growth for years to come.

Alex Wilkes has been General Manager for Pearle Vision since March 2016, and recently guided the company through the launch of the brand’s area development program, which has already produced growth results in the Tampa and Phoenix markets.

Established as one of Pearle Vision’s key pillars for growth, the benefits to entrepreneurs of the area development program include limited exclusive rights to their territory and a reduced royalty fee. www.ownapearlevision.com.

Franchising USA

mu lt i-un i t FR A NCHISI NG FE AT U RE

Page 37

mu lt i-un i t FR A NCHISI NG FE AT U RE

Profile: Miracle Method Surface Refinishing

Long-Time Employee Takes Ownership of Miracle Method of Charlotte Miracle Method Surface Refinishing, the nation’s largest professional bathroom and kitchen refinishing franchise, announces Miracle Method of Charlotte has a new owner, but he’s no stranger to the business.

For 15 years, Armando Garcia has worked at Miracle Method of Charlotte, working his way up from employee to general manager. Now, he’s the owner.

“I’m excited about the opportunity. During my time here, I’ve enjoyed working with people, and I know firsthand that we have a product of great value that helps customers save money and keeps smiles on their faces,” said new franchise owner, Armando Garcia.

Miracle Method of Charlotte offers kitchen and bathroom surface refinishing and specializes in bathtubs, tile, and countertops. They serve Charlotte and the surrounding areas, including Cherryville, Concord, Denver, Fort Mill, Gastonia, Hickory, Huntersville, Lincolnton, Matthews, Mint Hill, Mooresville, Rock Hill, and Shelby. Garcia purchased the franchise last month after 15 years of experience under the previous owner. He plans to bring a fresh perspective, while maintaining the strong work ethic and company values.

“I like the fact that I can bring my family into the business and mold a future generation to understand that with hard

Franchising USA

Miracle Method of Charlotte’s new owner Armando Garcia and son Alec

work and commitment, you can create a business that will stand strong through the years,” Garcia said.

Gwyn O’Kane, VP of franchise development said, “This is a great example of the ideal opportunity Miracle Method offers as a franchise. The exiting owner has a great business to sell and in this instance they are selling to a long term employee who can carry on the legacy of great service. For Armando it is the opportunity to take all his years of experience working for Miracle Method and now run his own business forging a promising future for his family. It is not unusual for employees of Miracle Method to start a new franchise location, but in Armando’s case he was able to secure the one he was familiar with.”

Miracle Method has been offering an affordable alternative to kitchen and bathroom replacement for more than 38 years, and is the fastest growing company of its kind with a 73 percent increase in sales over the last six years. Entrepreneur magazine ranked them No. 1 in their category on the Entrepreneur Franchise 500 list. They are also listed as a Top 50 Franchise for franchise owner satisfaction

by Franchise Business Review.

Miracle Method of Charlotte is located at 4301- R Stuart Andrew Blvd., Charlotte, North Carolina, 28217. To find out more, call 704-676-4976 or visit miraclemethod. com/charlotte.

About Miracle Method Surface Refinishing Miracle Method is the nation’s largest bathroom and kitchen surface refinishing franchise, with 140+ locations throughout the U.S. Founded in 1979, Miracle Method specializes in tub, ceramic tile, and countertop refinishing and strives to constantly improve their areas of expertise.

The award-winning franchisor was listed on Entrepreneur Magazine’s Franchise 500® list in 2018 and is also an actively participating member of Vet Fran. Miracle Method’s franchise owners all live in the markets they serve and pride themselves on being independent, local small business owners building outstanding reputations in their communities.

To learn more about franchise opportunities, visit fss.miraclemethod.com or call 877-434-5096.

A uniquely FLAVORFUL FRANCHISE OPPORTUNITY

Pollo Campero has served flavorful chicken made with our original family recipe since 1971. Our menu includes fried, grilled, and boneless chicken for wholesome, customizable, easy-to-share meals. Join our family!

Compounded Annual Sales Growth of 12% for the past six years 25 best fast-food chains in America – #6 Business Insider Over 350 restaurants system-wide with rapid expansion plans in 2018 and beyond

Learn more about franchising with Pollo Campero at CAMPERO.COM/FRANCHISING

POLLO CAMPERO Franchising USA : 7”x4.875”

JEJAK GRAPHICS is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 20 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services including: t "EWFSU EFTJHO t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO

Adverts

t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ OFXTMFUUFST t 8FCTJUF FNBJM BOE TPDJBM NFEJB CBOOFST Artwork is tailored to your brand and focused on your message and target audience.

No job is too big or small.

Stationery

Posters

$POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT can make your company or organisation leave ‘a lasting impression’.

JEJAK GRAPHICS

a lasting impression

03 5977 8804 | 04222 676 39 jejak@bigpond.com EXAMPLES: www.issuu.com/jejakgraphics

Logos

Manuals