Multi Unit Franchising May 2021

FranchisingFeature multi-unit

m ay 202 1

SANONDAF

World leader in disinfection services

launches US franchise network

Are you ready to be a multi-unit franchisee?

multi-unit ownership

presents attractive option for franchisees

slow and steady growth offers franchise success Franchising USA

fe at ure : mu T r en wo lt m en di i-ung ni ni tfr fr fraaanch nch nchises isi ising ng

what’s new!

THE WOODHOUSE DAY SPA SIGNS NEW FRANCHISE AGREEMENT IN NC multi-unit franchisee with more than 17 years of franchise industry experience, previously operating six Dunkin’ and Baskin-Robbins locations for 10 years. Since 2014, she has owned and operated two JEI Learning Centers in Cary, North Carolina, where she currently resides. Esha is a global supply chain expert, food importer and investor who will be Sonal’s business partner in this new venture. The two entrepreneurs are very passionate about luxury spas and have traveled all over the world for the best experiences.

The Woodhouse Day Spa, a high-end day spa franchise, has inked a franchise agreement to develop a location in the Raleigh-Durham area of North Carolina. The new spa, which is slated to open in Winter 2022, will officially expand the brand’s footprint into its 22nd state.

Spearheading The Woodhouse Day Spa’s North Carolina

development are Sonal Patel and Esha Ray. Sonal is a distinguished

“Being a longtime franchise operator and somewhat of a highend luxury spa connoisseur, I was thrilled when I found The Woodhouse Day Spa because it felt like two of my worlds colliding,” said Sonal Patel. “Esha and I can’t wait to bring the first Woodhouse Day Spa to North Carolina and create a special place for local residents to practice their self-care, which has never been more important.”

Following The Woodhouse Day Spa’s acquisition by Radiance Holdings in July of last year, the brand is aggressively targeting key markets throughout the U.S. for franchise development, including North Carolina. www.ownawoodhouse.com

CLASSIC AMERICAN FOOD AND WHOLESOME ATMOSPHERE NOT A THING OF THE PAST As the hamburger market continues to grow and evolve, one fast-casual diner concept is staying true to the original burger shop feel, Corbett’s Burgers and Soda Bar. Corbett’s Burgers and Soda Bar will transport you back with a warm, family-friendly, old-fashioned touch, featuring fresh Hereford ground beef, hot dogs, homemade sauces and more than 250 varieties of bottled sodas.

“The core of our concept is based around bringing back good memories of times gone by. We wanted to create a wholesome place for friends and family to hang out and enjoy good food with a cold glass bottle of soda,” said Founder, Corbett Shope.

The success of this unique family-friendly concept has led to the launch of its national franchise opportunity.

“Corbett’s combines the quality and taste of an expensive burger franchise with the lower franchise costs and simplicity of a sandwich franchise,” said Michael Stadnicki, Chief Operating Officer and Partner of Franchise Edge.

Corbett’s has a streamlined system that pushes tremendous volumes during peak lunch and dinner periods. The order process with the

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point of sale is easy - the grill master continuously cooks burgers to keep up with the volume of customers and the sandwich stations prepare toppings based on customer requests.

Their proprietary system keeps things affordable while not sacrificing on quality. Their playful trademark, Sodalicious, sums up the food and beverage experience that customers love. https://corbettsburgers.com

CHICK N MAX SPREADS ITS WINGS WITH NEW FRANCHISE OFFERING Chick N Max – a next generation fast casual franchise specializing in almond wood smoked chicken and wings, chefcrafted sandwiches and golden fried tenders – has announced the launch of its franchise opportunity and plans to expand across the Central and Southeastern United States.

With three corporate-owned restaurants already serving throngs of customers throughout Wichita, Kansas, Chick N Max intends to double its footprint by the end of next year and open as many as five new restaurants each year thereafter.

The growth will be primarily achieved through multi-unit franchising and initially target select markets throughout Kansas, Missouri, Nebraska, Oklahoma, Texas and the Southeast United States.

“Our philosophy on food and communityfocused business practices that has caught the attention of our existing customers is sure to do the same with future franchisees alike,” says Chick N Max COO Bob Peterson. “The future looks bright for

Chick N Max and we have barely scratched

augment the company’s growth, Chick

Founded in 2017 and franchising since

looking to get in on the ground floor of

fast casual franchise in the nearly $40

chicken franchise industry.

the surface of our potential.”

N Max is seeking franchise partners

2021, Chick N Max is a next generation

an emerging brand in the ever-growing

billion chicken franchise industry. To

www.chicknmax.com

KOALA INSULATION EXPANDS FRANCHISE TO 200 TERRITORIES NATIONWIDE

Koala Insulation, a nationally established franchise business that seeks to save homeowners money on their energy bills by providing highquality spray-foam insulation services, has kicked off 2021 with substantial growth.

In April, Koala Insulation signed its 200th territory location, surpassing their original goal of expanding to over 150 territories in a year. They are continuing to gain a nationwide presence by adding locations in Washington, Wisconsin, New Mexico, and Texas.

Koala Insulation seeks to provide

“My excitement continues to grow as we expand across the United States. We intend to build on last year’s sales momentum and continue to exceed expectations. There are many exciting things ahead for this brand.” said Scott Marr, the founder of Koala Insulation. “It’s been truly rewarding to experience growth during the pandemic, and we’ve had the pleasure to partner with some of the best franchise partners.”

for the year, they are on track for another

franchisees with all the tools they need to run a successful, recession-resistant

insulation business. And while they have successfully established franchises in

some of the hottest markets in the U.S.

and smashed through their growth goal

record year. Koala has also been scaling its corporate team alongside its new franchise partners. Over the past year, Koala has tripled the size of its corporate staff in

anticipation of the continued growth of their franchise system.

https://koalainsulation.com/franchise/ contact-us

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what’s new!

FACE FOUNDRIÉ OPENS NEW LOCATIONS ACROSS MULTIPLE STATES

Minnesota-based skincare business Face Foundrié is expanding nationally.

The facial bar concept specializes in effective and efficient services for your face.

After opening its third location in Minnesota in just two years, it’s already expanding with new locations in Minnesota, Wisconsin, Colorado, Arizona and South Dakota.

“Our franchisees are a great group of super talented and intelligent people.

It is exciting to see so many different backgrounds come together to work on the same dream,” said Face Foundrié Founder and CEO Michele Henry.

“In a year of hard pivots, it’s been rewarding to see how we can continue to bring our services to the masses. We have disrupted both the service and training

sides of this industry despite the constant uncertainty. Our end goal remains the same, people deserve accessible and approachable skincare no matter where they are or who they are, and franchising has been an incredible vehicle to help us carry out this mission.”

commitments is hard, but during a pandemic is near impossible. People have really shown up for our mission and concept which is both inspiring and brings so much hope. People really do need this space and we can’t wait to bring it to them with our franchisees.”

“Selling 15 units and having 25 additional

https://www.facefoundrie.com

NINJA NATION ANNOUNCES NATIONAL EXPANSION PLANS FOR 2021 to play, train, and compete in world-class facilities while developing skills, strength, and confidence. The brand has four locations open and operating in Colorado and Texas. Their fifth location will be opening in Huntersville, North Carolina this spring.

Ninja Nation, the Colorado-based youth fitness concept, is announcing its plans for national franchise expansion as the demand for their obstacle course business has continued to increase into 2021.

The brand maintained its success following the COVID lockdown of 2020 and is continuing to expand across the country. They are excited to offer something for everyone from the first-timer to the seasoned athlete, including open gym time, classes for children and adults, competitions, birthday parties, special events, and mobile operations.

Due to a continuous inflow of interest and nationwide popularity, the brand is actively seeking multi-unit, area development, and semi absentee franchise opportunities in top markets throughout the nation.

“We are proud to offer kids this unique and engaging experience that provides them with both mental and physical confidencebuilding activities,” said Wayne Cavanaugh, Founder and CEO. “While our programs align with our mission of creating heroes and keeping kids active, it is also an exciting way to instill resilience into kids. We are thrilled to continue to create a positive impact in kids’ lives as we open locations across the country.”

Ninja Nation provides both adults and kids the exciting opportunity

www.ninjanationfranchise.com

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GERMINATOR REFRESHES BRANDING AND LAUNCHES SAFE ZONE CAMPAIGN

SALADWORKS AND FRUTTA BOWLS TEAM UP WITH COMBO KITCHEN Saladworks and Frutta Bowls have announced a partnership with Combo Kitchen, a franchise system that allows entrepreneurs to invest in a ghost kitchen and operate multiple food concepts listed in its network.

Operators benefit by generating additional revenue with the incorporation of a proven concept, while maintaining or even reducing their standard restaurant expenses. Combo Kitchen anticipates substantial growth nationwide with the WOWorks brands. In the first 60 days of the partnership, Combo Kitchen signed Saladworks for 14 initial locations. It foresees growing Saladworks and Frutta Bowls brands at a rate of 5-7 locations monthly throughout the remainder of 2021.

“What’s powerful about this partnership is its mutual benefit for all parties involved. Our unique ghost kitchen model calls for proven brands. Saladworks and Frutta Bowls can experience exponential growth while Combo Kitchen handles all franchise sales, royalty collections and other operational responsibilities,” said Combo Kitchen CEO Hossein Kasmai. “Restaurant operators boost their revenue with the incorporation of a recognized and established brand, while consumers can take advantage of new flavors being brought to their area.”

In the past year alone, Saladworks has grown by more than 40 restaurant locations, entering new markets such as Canada, California, Tennessee, Rhode Island, Ohio, Florida and Indiana.

Roughly 80% of these openings mark non-traditional presences, i.e. ghost kitchens, food trucks, grocery retail, hospitals and universities, as the brand continues to flex its muscles as an industry disruptor. Frutta Bowls is a fast-casual trend-setter centering on a unique menu that is made fresh-to-order with no sweeteners, no juices and no fillers added.

Germinator Mobile Sanitizing and Disinfecting has had a refresh, simplifying its branding to “Germinator” and launching a new creative campaign with an educative message.

The company’s first initiative is the launch of the Germinator Safe Zone campaign, which aims to better educate the market on the value proposition of 360-degree germ protection, 365 days a year for the spaces where we work, live, and play.

Launching in parallel with the new campaign, Germinator has embarked on a number of strategic channel partnerships, which includes the ability to offer new lines of sanitizing body products designed to provide protection up to four hours per use, air disinfection units designed to remove viruses, bacteria, allergens, and contaminants in the air, and innovative backpack and handheld mini electrostatic sprayers.

Germinator has also connected with SafeAccess, a risk management solution suite, which allows enterprises, schools/ academia, and event organizers to easily create and maintain health and safety policies and procedures, contact tracing, testing, digital health passports, AI-based cough signature detection, and more.

These new initiatives, when coupled with the company’s patentpending sanitizing and disinfecting service, create Germinator Safe Zones that provide advanced protection for surfaces, air and you.

Changes to the brand also include an updated logo and new website domain. www.thegerminator.com

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Cover Story: SANONDAF

- SANONDAF -

World leader in disinfection services

launches US franchise network Sanondaf Franchising USA is currently seeking prospective great franchisees and Area Developers to bring this amazing concept to different markets around the country.

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Sanoserv International Franchising, owner of the Sanondaf Disinfection Services

Brand, was founded in Europe (Malta)

in November 2011 and currently has 60

franchisees across five continents around

the world. The company has been actively ramping up operations to enter the US

market, which it did in March 2021 by

setting up Sanondaf Franchising USA, an Arizona corporation offering franchises throughout the United States.

What makes Sanondaf the world leader in sanitation?

Sanondaf is a touchless sanitation and disinfection service system and the

world’s franchise leader in the provision

of disinfection services. The company has

not been born as an opportunistic COVID19 solution, but has been developing and optimizing its system since its inception in 2011. Its system is not only ideal, as a

solution, to fight COVID-19, but has been

“ All North American franchisees will receive local support, coaching, sales training and operational training to ensure their success.”

applications provide strong, financially viable propositions in the following sectors: senior care facilities, catering, day care centers, hospitals, physician offices, hotels and motels, office buildings, restaurants, grocery stores, retail stores, houses of worship, beauty and hair salons, transport vehicles, aviation, transport hubs/facilities, schools, universities, and any other facility where people tend to congregate in groups.

Sanondaf franchisees

proven effective against an endless list of viruses, bateria, fungi and other pathogens.

Sanondaf uses the latest technology and industry innovations for regular touchless disinfecting services and its products have been used effectively across various industries including aviation, transportation, medical, high tech manufacturing, offices, schools, care homes and many others. The system uses a patented formula which is ideal for both surface disinfection as well as air disinfection for airborne pathogens. The system is also ideal for water treatment. Sanondaf provides various effective disinfection solutions amongst which are the leading systems “SanoFog” a fogging device spraying a dry fog aerosol disinfection product centered around a heating and aerosolizing turbine and “SanoStatic” an electrostatic solution deployed via an electrostatic spray disinfection system for surfaces

disinfection. Solutions are FDA certified and kill 99.9999% of viruses (including Covid-19 and all known variants), harmful bacteria, fungi, yeast, and other microorganisms.

Why is there a need for this service?

An expectation of cleanliness and sanitization has become the new normal.

The world has spent the past year wearing masks and fearing an invisible killer in Covid-19, and we’re not done yet. Even once we’ve achieved the upper hand with this virus, there will still be new variations and other viruses to protect our family, friends and clients from.

Sanondaf is a tried and tested solution proven to be effective in disinfecting both enclosed and open spaces. Sanondaf’s products may be used for domestic and commercial purposes, across different industries. Sanondaf’s multi-channel

Our ideal franchisees will be entrepreneurial but value the systems, processes, and support that come with an established international franchise model.

They will be trailblazers – excited about the opportunity to help bring a new (but necessary) concept to the United States and the financial opportunity that it offers.

They will care about their communities and want to make community spaces safe and clean for their families, friends and neighbors.

Our new offices in Phoenix, AZ include our training facilities, training & support personnel. All North American franchisees will receive local support, coaching, sales training and operational training to ensure their success. We will make sure that we’re there for our franchisees at every step of the way.

Looking ahead Our aim is to focus on growing the US business and our efforts and investment are being channeled to achieve this aim.

Our plan is to add up to 600 franchisees over the next five years as we bring this successful business model to all corners of North America.

To learn about franchising opportunities, contact Aaron McMartin, VP of Development, at amcmartin@summafranchise.com.

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Featu re

S i n e a d H o r a n -We b b | Fr a n c h i s i n g U S A

ARE YOU READY

TO BE A MULTI-UNIT FRANCHISEE? As confidence in franchising as a resilient and reliable business model grows, more and more growth-minded franchisees are thinking big and looking to expand their empire.

Multi-unit franchising offers a way for those with big business dreams to go from operating a single store or service to overseeing several units.

Some business investors want to focus on just one franchise; it’s their domain, their livelihood and their single focus.

The business may be a family operation or passion project for a retired couple, or maybe it’s the bread and butter of a firsttime business owner who is dedicated to putting all their effort into growing that individual store or service.

Is multi-unit franchising a smart choice for your future?

The more franchises you operate, the more profit and money you can generate. But dedicating oneself to more than one unit takes time and money. Patience is key.

prepared to multi-task the management of multiple units.

In addition to the tried-and-tested models of operating multiple units within the

one franchise brand, another, slightly less

common, option is for multi-unit investors

to own different types of franchise brands.

For other investors, franchising is a way of building something bigger. Maybe they are highly experienced franchise owners who are ready to expand their footprint, or a business-savvy investor who sees the potential profit in operating multiple locations.

It’s generally recommended for franchisees to become familiar with a franchise while waiting to turn a profit in order to gain back their initial investment. Then, once they have attained enough financial assets, they can feel confident in buying into another outlet of the same franchise.

Using this model, the entrepreneurial franchisee can slowly but steadily grow a solid network, replicating the process with each outlet. While this is the safest way for cautious franchise operators to expand their network, there are more direct paths to franchise growth for those willing to take a few risks.

Whatever your reason for franchising, it’s important to ask yourself:

Investing in multiple units at once can see quick results for opportunists who are

attribute of a successful multi-unit

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While single-brand, multi-unit franchising is still the standard method of operating a

franchise network, running multiple stores across multiple brands can, cautiously, be done. Traditionally, franchise investment used to come with protected territory

clauses, which prevented franchisees from investing in competitors within a certain

distance, but some franchisors are starting to loosen their rules around exclusivity

rights to adapt to this developing demand from entrepreneurial franchisees.

Which leads us to the most important franchisor:

only prepared to allow highly financed individuals to become multi-unit operators.

Spend some time researching the expectations and requirements of the franchise, attend networking events and franchise expos, and speak to existing multi-unit franchisees to learn more about their experiences and the pros and cons they have encountered, and what support and training is offered.

It’s important to be realistic about your goals, your abilities and your financial security. Success depends upon due diligence, so do your homework before committing to any big decisions. If you put the work in early, you will pave the best path – or multiple paths - forward.

To see what franchises are available, explore our Franchise Directory: https:// franchisingusamagazine.com/franchisedirectory

WHAT ARE THE BENEFITS OF MULTIUNIT FRANCHISING? Seeing the bigger picture Instead of running the day-to-day operations of a single unit where you can hone-in on the specific needs of that one store or service, multi-unit franchisors need to take a broad view of operations across multiple locations or service providers. For entrepreneurs who enjoy strategizing, financial forecasting and envisioning business trends, managing multiple locations can be highly rewarding and potentially very lucrative.

But these are skills and attributes that don’t come naturally to everyone, so be sure you have the right personality fit before making any key decisions. And, of course, you must be passionate about the brand as, in many ways, becoming a multi-unit franchisor makes you an ambassador for that brand. You must be highly focused on growing brand awareness and be invested in its success.

Multi-unit also means multi-tasking, so consider how you will juggle and prioritize the needs of each unit. How does one unit impact the other? How will you manage

the staffing needs of each unit and the personal relationships with management and other staff members? The dynamics of being a hands-on sole franchise operator is very different to being an infrequent presence among several different units across a large territory.

So, before you begin down the path to multi-unit ownership, do your homework.

This means being highly focused on:

To Franchisees • Greater earning potential – the more franchises you own, the more money you can make • Lower operational costs – franchisor may provide discounts for running secondary units, like lower fees and royalties • Staffing flexibility – access to a larger pool of staff, making it easier to cover absences and manage leave requests

The importance of due diligence

To Franchisors

Before committing to an initial investment in multi-unit ownership, it is vital to dig deep into due diligence. Some franchises are more tailor-made for network growth than others. Some even offer discounts for secondary units and have operational systems purposely laid out for multi-unit franchising. So, if you have a long-term vision to operate more units, find out now if the franchise has growth potential. Even if there is a possibility to own multiple units, you need to know upfront what the franchisor’s financial expectations are.

Some multi-unit focused franchises are

• Less training required – only one initial training course required to manage several outlets • Lower franchisee risk – granting additional units to a tried and tested franchisee means less risk than selecting a new franchisee to operate a location • Faster growth – time-saved on recruitment and training allows business to get up-and-running faster leading to quicker growth and higher profits

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Focus : Horse Power Brands

Meet the Multi-Unit Franchisors

on a Mission to Grow Service-based Brands Horse Power Brands, a trio of “blue-collar millionaires”, have teamed up on a mission to responsibly grow servicebased franchise brands.

Beards, flannel shirts and baseball caps are a common look for this lively downto-earth trio of Josh Skolnick, Zachery Beutler and Erik Van Horn. They not only have the business smarts and experience to grow and sell multi-million-dollar companies, but know their way around a farm and aren’t afraid to get their hands dirty. A rare mix today, they’re a breath

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of fresh air to the usual button-down shirt business executives.

Their first acquisition after forming Horse Power Brands is Mighty Dog Roofing specializing in commercial and residential roofing, gutters, siding, windows, skylights and storm damage. Just six months into the investment, the company has awarded 40+ locations to its first 13 Mighty Dog Roofing franchisees across 10 states and is on track to sign a total of 80+ franchise locations by the end of the second quarter 2021 The Partners teamed up last year with a goal to improve the franchisor-franchisee experience and ROI in the service-based franchise sector.

The trio, who crossed paths over their years in franchising together, plan to become

the industry’s next major service-based conglomerate with a clear differentiator – active involvement in the operations and franchisee support of its portfolio brands.

Horse Power is laser-focused on ROI by delivering systems, service and support, so franchisees can focus on sales and production to maximize monetization.

“The standard practice in our industry has become a race to 100 units sold, often without sensible offerings nor a clear vision to actually open all 100 locations. That’s not success. We are focused on providing atypical efforts and services to ensure we not only sell franchises responsibly, but open them with the tools to ensure the franchisees’ growth and longevity,” Skolnick said. “This is what sets us apart

“The Partners teamed up last year with a goal to improve the franchisorfranchisee experience and ROI in the service-based franchise sector.”

ABOUT THE FOUNDERS WHO TEAMED UP TO DO IT DIFFERENTLY IN SERVICE-BASED FRANCHISING Josh Skolnick Josh Skolnick is a serial entrepreneur who began a successful landscaping business in his youth. In 2008, he founded Monster Tree Service and grew it into a multi-million-dollar franchise with over 200 territories across the U.S. before selling it to Authority Brands in 2020. In 2018, Skolnick took over Redbox+, a patented combination portable toilet and dumpster rental service turning it into a nationally recognized brand with over 240 territories, but his drive didn’t stop there. On his most recent endeavour, Skolnick joined with two other franchising leaders to create the service-based parent company Horse Power Brands, which acquired and operates Mighty Dog Roofing. Skolnick lives in Pennsylvania with his wife, three children and dog Onyx, a Staffordshire Bull Terrier.

Zachery Beutler

s and why we’ll become a portfolio of service brands with $1 billion+ in annual revenue.”

Sharing a goal to see franchisees open and grow successful businesses, Skolnick, Beutler and Van Horn said the formation of Horse Power Brands is the high point of their respective franchising careers.

“After awarding franchises, we have the means and experience to actually get the locations open quickly,” Van Horn said.

“Seeing the franchisees open successful is extremely gratifying. Each of us have had years of experience as franchisees, franchisors, developers and consultants.

We are where private equity meets operational excellence.” https://horsepowerbrands.com/

Zachery Beutler began his career in franchising as a young, ambitious franchisee with Nebraska-based Complete Nutrition, later becoming a multi-unit franchisee of Color World Housepainting, Inc. He went on to take up a variety of roles in franchise development with 5 different brands and as Chief Development Officer of Redbox+. As one of the highest performers in franchise development, Beutler has gained a wealth of knowledge on building brands and businesses. He is also co-owner of Beutler Beef, a company that provides high quality beef, and most recently co-founded Horse Power Brands. Beutler and his wife make their home in Pender, Nebraska raising cattle on their family ranch alongside a beautiful daughter and two dogs, Winston and Jedi.

Erik Van Horn Erik Van Horn is a franchising and marketing mastermind who has experience franchising at every level including successful runs as a multiunit franchisee, Master franchisee, area developer, franchisee consultant and franchise industry podcaster. He worked with Liberty Tax Services, where he was a franchisee for six years and went on to be a Master franchisee for another four. Van Horn then opened Synergy HomeCare in 2011, Sola Salon Studios in 2012 and various other businesses garnering him more than 20 years of franchising experience. Most recently, Van Horn co-founded Horse Bower Brands. Van Horn and his wife live in Spearfish, South Dakota with their daughters and two dogs, Piper and Sparky.

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

Multi-Unit Ownership presents attractive Option for Franchisees is also a growing trend, as there was a 23 percent increase in entry-level multi-unit owners (2-5 units) during an eight-year span from 2010 to 2018.

The restaurant industry has the highest concentration of multi-unit franchise ownership. Almost every storefront franchise, whether it be a fitness concept, tax service, automotive or beauty-related business, has a large number of multiunit franchisees. Very few franchisors do not allow their franchisees to own several locations, while some, like major hair cutteries, expect their people to own multiple units.

Rick Bisio

One of the primary considerations for someone who is researching a franchise opportunity is whether to own a single location or multiple units.

Multi-unit operations are a common practice in franchising, have many benefits and should be a key part of an individual’s due diligence process when exploring franchise ownership.

According to a recent report by FRANdata, 54 percent of all franchises are multiunit operations, with 43,212 multi-unit operators controlling more than 223,213 franchised units in the United States. It

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A similar situation also applies for serviced-based franchises without a storefront location. Instead of operating multiple stores, service-based franchisees own several territories in which they have exclusive rights to operate within a given geographical area(s). This grants them additional growth opportunities and is a common practice within franchising.

Benefits of Multi-Unit Franchise Ownership There are many advantages to owning more than one franchised establishment, whether it be additional revenue streams, lower operating costs, time commitment or staff flexibility. Opening the first franchise location is often the most difficult. There can be a steep learning curve as the franchisee learns the new system. It also requires the owner to be more hands-on in running the business and spend more time on-site.

That process actually becomes easier

when a franchisee owns additional establishments. At that point, the franchisee can hire a manager and put a strong team in place to run all the locations while only needing to oversee operations from a big picture perspective. That can lead to fewer working hours, greater personal flexibility and a better work-life balance.

In addition to having another source of revenue, owning multiple franchised units provides franchisees with greater income diversification than managing just one location. It can sometimes mean a safer investment since they don’t need to depend on a single site to make all the revenue while also helping survive any difficult economic times.

There are also several operational benefits to owning multiple franchises. Whether someone owns two or five locations within a certain area, the marketing program will benefit every location and strategy becomes more efficient. If there is a situation in which a manager or employees are unable to work on a given day, other

support into a new franchisee as they teach them the system. This includes things such as helping them find the right location, negotiate their lease, hire and train staff, and market their business.

staff members from different locations can be brought in to fill their void. The person who handles the business’ accounting and finances can take care of that across multiple units. There are tremendous economies of scale when it comes to opening multiple locations.

To take advantage of many of these benefits that come from multi-unit ownership, it often makes the most sense to invest in multiple locations under a single brand. Franchisees are able to maximize their efficiencies while operating multiple units in the same system. Some owners chose to diversify their operations by owning franchises across several brands.

As a franchise coach, I would recommend first opening several with one brand before buying additional locations with another brand.

The Value of a Multi-Unit Franchisee Successful multi-unit operators are very attractive in the eyes of franchisors. The franchisors invest a lot of time, money and

When a franchisee learns the system, much of that assistance from the franchisor is no longer necessary. Once a franchisee is proven and successful, that person becomes a great candidate to open more locations.

There is less support needed from the franchisor and there is a higher potential for success.

Some franchisors actively seek candidates who have experience in owning multiple locations. In the restaurant industry, many franchisors will only accept franchisees with restaurant franchise experience who have operated a large number of units.

I recently spoke with a group wanting to open a restaurant franchise who were basically turned down by the franchisor who was looking for people who had a track record of owning multiple locations and the money to do so.

Deciding on Multi-Unit Franchise Ownership The desire and comfort level to own multiple franchise locations varies for each person. Some people prefer to open a single location and grow from there while others want to start by signing a multi-unit

deal. When I talk with people about this, I essentially ask them if owning one location will meet their needs.

People who do the proper due diligence should get a good idea of how much their earning potential will be from one location.

If that meets what they are looking for in their lives, they should only sign up for that location. However, if one location is not enough, they should probably sign up for multiple locations and do that at the outset of the process.

In some cases, the franchisor may discount the franchise fee for every additional unit or territory purchased by the franchisee. It also gives the franchisee exclusive access to a particular area and ensures they are not blocked by other owners if they wish to expand and grow their business.

Multi-unit ownership is a popular and growing trend within franchising. If operated correctly, it can be a very profitable and successful form of business ownership.

Rick Bisio is one of the countries most respected franchise coaches and author of the Amazon best seller, The Educated Franchise - 3rd Edition. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. https://afranchisecoach.com/

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“There are many advantages to owning more than one franchised establishment, whether it be additional revenue streams, lower operating costs, time commitment or staff flexibility.”

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Have Your Say: Farrellynn Wolf | CEO | Goodcents

Launching

Franchise Restaurants in New Markets

There are many obvious to-dos for launching in a new market, however, franchise restaurants must also have plans in place for three priorities that are easy to overlook: Having ‘boots on the ground’ to assist with training and ensuring brand standards, Farrellynn Wolf

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raising brand awareness, and assuring consistent supply chain services.

1

Boots on the Ground

Some franchises appoint area developers to serve as an extension of the franchisor in growing markets.

Goodcents, which is headquartered in De Soto, Kansas, just outside Kansas City, is currently expanding to new markets including St. Louis and Phoenix. We have ‘area representatives’ to develop those new markets, train new franchise owners, and serve as an ongoing resource for franchisees.

Area representatives are asked to invest in a defined geographic area that will be developed with a minimum of 10

“A restaurant franchise is only as good as its food, and food is only as good as its ingredients.

That’s why Goodcents partnered with Sysco, a global leader in distributing food products to restaurants. ”

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Building up the Brand

Brand awareness is two-pronged for franchises. They must make sure consumers know about the business and its products or services, and they also have to make sure potential franchisees are aware of the opportunity that exists.

restaurants – at least one of which must be owned by the area representative. An area

representative receives half of the franchise fee for each location in their area. After a

restaurant opens in their area, they receive more than a third of the royalties - or 2

percent of gross sales - from each location, for developing the area and supporting brand standards.

In this model, the area representative has

a financial stake in the success of the new

market. They are local owners working to

develop a 10-store portfolio of which they can be proud.

In the Kansas City area, everybody knows Goodcents. The restaurant concept is part of the fabric of the community. It is where youth sports teams gather after a game, where office teams order lunch for meetings, and where you pick up a family meal for a busy weeknight dinner.

But outside of the greater Kansas City area, Goodcents isn’t as well-known as some of its competitors. In addition to raising consumer awareness about the quality of the food, Goodcents had to raise awareness among prospective franchisees about what makes Goodcents a strong investment. To do that, Goodcents stepped up PR efforts and launched “brand awareness-building” ad campaigns in both St. Louis and Phoenix about the brand and the areas in development.

Before you can begin to grant franchise licenses in a new market, you must make sure your potential candidates know who you are and what differentiates your brand from the competition.

3

Distribution Centers

A restaurant franchise is only as good as its food, and food is only as good as its ingredients. That’s why Goodcents partnered with Sysco, a global leader in distributing food products to restaurants.

Working with Goodcents’ partner in Kansas City, the franchise recently added Goodcents proprietary items – food, paper goods, cleaning supplies – to Sysco’s distribution center in St. Louis. So, if a St. Louis location unexpectedly runs out of ingredients, they can be at a distribution center to restock in 20 minutes rather than the four hours it would take to get to Kansas City.

New Goodcents franchisees have many details to consider when opening their new locations, so sometimes it’s necessary to push some concerns to the back burner.

However, having a local area representative in the market to support site selection, open the restaurant and train crew, as well as oversee branding and partner with an established distribution center, is key to success in a new market.

Farrellynn Wolf is CEO of Goodcents https://ownagoodcents.com/

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Expert Advice: Tom O’Keefe | Managing Director | Southern Classic Chicken

Slow and Steady Growth Offers Franchise Success

Southern Classic Chicken, a family-owned fried chicken restaurant concept based in Shreveport, LA, recently launched a franchise program after 30 years in business.

The brand has learned many lessons, offering suggestions on the advantages of employing a slow and steady growth strategy utilizing the franchise model.

“Been There. Seen That” Often, we read about a unique, new concept that explodes on the scene and becomes a commodity in franchising. The idea seemingly sells out territory after territory with news of huge multiunit deals and promises of the arrival of hundreds of franchised units. But how many times do the same concepts see their development

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“Fledgling franchisors who move too hastily become susceptible to common mistakes including the fear of saying “no,” the failure of performing due diligence, and overselling large territories to unqualified developers.”

plans fulfilled? Rarely. The driving factor behind this tendency is a flawed growth strategy that focuses more on franchise sales rather than the opening and support of successful franchise units. The resulting failures of going too fast are not only brand-damaging to the rest of the system but can, in some markets or cases, become fatal to the brand. Said another way, the race is won by those who approach franchising with a “slow and steady” mentality rather than a quick blitz off the franchise sales blocks.

Some Common Mistakes Made

by Franchisors Who Move Hastily Moving quickly can come with a price.

Fledgling franchisors who move too hastily become susceptible to common mistakes including the fear of saying “no,” the failure of performing due diligence, and overselling large territories to unqualified developers.

It is crucial to understand that not every prospect is right for your concept, emphasizing the importance to be able to turn deals away. This can be for a variety of reasons from financial or operational qualifications to cultural fit. Failing to define and actively seek the characteristics desired in a franchisee candidate profile can lead to poor sales and tarnish a brand’s reputation. The majority of franchisees fail because they are either not properly capitalized or the franchise location should not have been accepted.

A disciplined franchisor needs to undertake the necessary diligence to confirm the financial status of the prospect and do a real estate analysis of any market before opening it up for franchising.

Steering the franchisee to profitable markets and sites that allow for optimal

chances of success is necessary homework.

Franchisors can often make the mistake of letting the excitement of selling territories consume them. Overselling large territories to unqualified developers, selling territories in “one-off” or distant markets where no brand name recognition exists, and failing to account for the time and expense of supporting these franchisees from afar can lead to failure. We encourage franchisors to employ a slow and steady growth strategy, beginning with entry into contiguous markets and then growing “inside-out.”

This model has proven its ability to allow franchisees to not only sustain but exceed their growth goals, in addition to creating brand recognition over time.

Slow and Steady Growth Can Improve Brand Name Recognition Franchisors desiring to be “best in class” will employ a growth strategy that makes such a desirable opportunity that only a limited number of applicants will be accepted. Generating this demand doesn’t happen overnight but, rather, through long periods of development. By creating a competitive franchise sales environment, the franchisor should attract better candidates. Reciprocally, sophisticated franchise prospects are typically more attracted to a franchise company that can showcase the value of its system through its long-established brand recognition, efficient unit-level operations, and compelling unit-level economics. All of these attributes are developed over time leading to a more attractive offering that draws in qualified applicants.

Pace Makes the Race There are many restaurant concepts that have come and gone; the operating

Tom O’Keefe

history of the franchisor illustrates how consumers perceive and react to a brand.

Longevity in the marketplace shows the ability to survive, thrive, and surpass any reasonable test of commercial viability, lending further credibility to the brand’s strength. Thus, the importance to deliver quality products at affordable prices in a safe and convenient environment is paramount. Adding to that is the ability to allow franchisees into the system and to provide them with the tools required for them to replicate the franchisor’s success. Southern Classic’s decadesold history of selling fried chicken and complimentary side offerings in its predominantly drive-thru model exemplifies how to achieve such success and do so in any economic environment.

The Slow and Steady Win the Race Ultimately, I implore you to demonstrate patient, focus, and discipline with your growth plans. Nurturing the confidence that you have in your concept will reflect your ability to succeed. While it may take time, and perhaps even more than originally thought, it’s the winning strategy. The side of the road is littered with those who moved too fast.

Tom O’Keefe is the Managing Director of Southern Classic Chicken, launching the 30-year-old family-owned brand to franchising. www.southernclassicchicken.com

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