RETAIL AND FRANCHISING FROM FRANCHISING USA JANUARY 2020

FranchisingFeature retail franchising

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RETAIL FRANCHISING IS STILL GOING STRONG special

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SUCCESSFUL RETAIL FULFILLMENT REQUIRES PROACTIVE INSIGHTS AND PLANNING

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what’s new!

Cannabis One and ONE Cannabis Unite, Primed to Transform the Future of Cannabis unmatched. Connecting these exceptional performers will usher in a wave of gamechanging initiatives for the industry as a whole,” said Jeff Mascio, CEO of Cannabis One. Together, the Colorado-based companies will be focused on expanding its franchise footprint worldwide, which includes agreements signed for 15 dispensary franchises across five states and multiple corporate dispensaries in the United States.

Cannabis One Holdings Inc. (CSE: CBIS) (“Cannabis One” or “CBIS”) and ONE Cannabis Group (“ONE”) announced today that they have entered into a definitive arrangement agreement to combine businesses.

“As two Colorado born and bred companies, we’re comprised of industry

pioneers who have honed best practices across nearly all areas of cannabis over the past decade. Together, Cannabis One and ONE Cannabis will lead the industry into a truly successful Cannabis 2.0 with our winning combination. Our products and services deliver a level of consistency and quality to cannabis consumers that’s

“Franchising is the most agile and proven way to scale in the cannabis industry,” said Mike Weinberger, COO of ONE Cannabis, which began its franchise program in 2018. “Cannabis One shares our vision of inspiring confidence in cannabis for all, and we look forward to working together to elevate our brands across North America and beyond.”

For more information, visit ocginc.com.

7Rewards® Loyalty Program Crosses 25 Million Member Mark Since expanding its 7Rewards loyalty program two years ago, 7-Eleven, Inc. has seen membership in the app-based platform almost triple (278 percent) from 9 million to 25 million members. This explosive membership growth has translated to increased store visits and a larger, more loyal customer base for the world’s largest convenience retailer.

In 2019, 7-Eleven was awarded several awards for its loyalty program: Convenience Store News’ Technology Leader of the Year Award, Loyalty360 Technology and Trends Platinum Award, The International Business ‘Gold Stevie’ Award for Integrated Mobile Experience, and more. Each of these notable award competitions recognize brands that are building stronger and deeper loyalty with their customers in a proactive, meaningful and measurable way.

“While winning awards is certainly an honor, the real measure of success is how 7Rewards benefits our customers and franchisees every day,” said Joe DePinto, 7-Eleven President and CEO. “7Rewards members visit our stores more often and spend more

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when they shop. That means increased store traffic for franchisees and our corporate stores – an added eight customers per store each day.”

Find out more online at www.7-Eleven.com.

Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating technology enabled hair salons, announced today they have entered into an agreement for the sale and conversion of an additional 133 company-owned salons located in the state of Pennsylvania and surrounding areas to the Alline Salon Group, formerly known as Super C Group.

The salons being acquired are currently branded as Holiday Hair®, Famous Hair®, Best Cuts®, CityLooks®, Style America® and BoRics Hair Care®. One hundred and five of the salons will be under the Holiday Hair® banner and the balance will be converted to the Regis Cost Cutters® brand.

The transition and conversion began early December and will continue into early 2020.

partnership now covers Michigan, Ohio and Pennsylvania and three brands: Supercuts, Cost Cutters and Holiday Hair.

The Alline Salon Group has created an excellent culture and built a team of proven leaders. We are optimistic about our future together,” commented Eric Bakken, Executive Vice President, President Franchise of Regis Corporation.

commented, “Growing with competent multi-unit operators, like the Alline Salon Group, strengthens our franchise portfolio and further accelerates our strategy to convert to a capital-light, technology enabled franchise business.” Mr. Sawyer added, “Regis has a pipeline of 970 salons to be transitioned to franchisees in various

“We are pleased to expand our relationship with the Alline Salon Group. Our

Hugh Sawyer, President and Chief Executive Officer of Regis Corporation

www.regiscorp.com

stages of negotiation.”

skinBe Med Spa Partners with Lasky Architect PA Scott Lasky, CEO, ncarb, aia, has nearly forty years of experience in architectural design and construction. Lasky Architect PA has been the architectural lead in projects of varying nature, size and geographical location.

skinBe Med Spa announced today that it has partnered with Lasky Architect PA, an international firm that provides a full range of architectural, interior design, engineering and project management services.

“We are thrilled to be partnering with experts to continue to expand our footprint while adding value to our franchisees and protecting the skinBe brand by streamlining processes. I am confident that Scott Lasky and his team have what it takes to help us build the skinBe empire. It’s simple; talent wins games but teamwork and intelligence wins championships.” said Beth Donaldson, Founder + CEO.

“We at Lasky Architect PA are excited to have been chosen for an exclusive relationship with skinBe Med Spa to provide architectural, engineering and interior design services for this fast growing franchise organization. Working with Beth Donaldson CEO, has been a pleasure and as they expand nationally, each future franchisee will experience the professionalism she exudes. The space design for skinBe Med Spa clearly hits the perfect tone for their mission, services and vision. We at Lasky Architect PA, thank skinBe Med Spa for this opportunity and are excited to be a part of this revolution,” said Scott Lasky CEO, ncarb, aia “We are proud of the team we are building and the partnerships we have created. It takes the powerful mindset of a collective for empires to be built,” said Dee Davis, skinBe COO.

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Regis® Announces Agreement to Franchise the Holiday Hair Brand and Sell an Additional 133 Company-Owned Salons to the Alline Salon Group

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what’s new!

BoConcept Capped Off 2019 with Four Major Industry Awards

The Global Design Leaders’ GLASS Campaign Provided a Unique and Holistic Aesthetic Experience and Ignited High Levels of Customer Engagement created a unique consumer experience that highlighted the elegant and streamlined design of LG OLED Glass TVs, along with the contemporary look and feel of BoConcept’s luxury furniture.

“Since its inception, BoConcept has been committed to elevating interior spaces so they can look their absolute best and truly make an impression,” said Steen Knigge, Director of U.S. Marketing for BoConcept. “The BoConcept team worked tirelessly on the GLASS campaign, which speaks to the modern consumer who is looking to unite form and function through the harmonious partnership of technology and design.”

Danish-founded retail furniture franchise BoConcept is capping off a major year of growth that saw the global brand receive four major industry awards in 2019.

The awards recognized LG Electronics and BoConcept’s

BoConcept was originally founded in Denmark in 1952 and began franchising in Paris in 1993. Today, BoConcept boasts a franchise footprint of more than 300 locations in 65 countries. The brand continues to expand the business and aims to reach 600 stores globally.

integrated BoConcept furniture designs with “Picture on Glass” LG

“Trends come and go,” said Knigge. “But BoConcept proves that disruptive innovation, not to mention a commitment to providing high-quality customer service, will never go out of style.”

global home entertainment technology leader LG Electronics and

For more information please visit www.boconcept.com

collaborative GLASS campaign, an in-store partnership that

OLED TVs. The GLASS campaign was done in partnership with

Adam Cannon Promoted to Vice President of Brand Management at G6 Hospitality G6 Hospitality LLC, the parent company of Motel 6 and Studio 6 brands in the United States and Canada, announced Adam Cannon has been promoted to the newly created position of Vice President, Brand Management.

He will report directly to Rob Palleschi, Chief Executive Officer.

In his new role, Cannon will focus on the

development of a new Brand Management business unit. He will be responsible for outlining brand objectives, establishing reporting and performance goals, and

ensuring alignment across the enterprise.

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Cannon previously served as Vice President of Operations for the Studio 6 extended stay product. He and his team were instrumental in the development and implementation of critical needs for the enterprise, collaborating across departments within G6 Hospitality in both the owned and franchise environments.

Before that, he spent 16 years at Wyndham Hotels & Resorts, in roles ranging across both regional and brand operations.

Cannon served as Vice President, Operations on four of Wyndham’s economy brands throughout his tenure. www.g6hospitality.com

CAROLINA HEMP COMPANY SET TO OPEN FIVE NEW FRANCHISES IN Q1 2020

Carolina Hemp Company has just closed deals to open up franchises in North Carolina, South Carolina and Georgia Carolina Hemp Company is proud to announce that they are opening franchises in Rock Hill, South Carolina, Knoxville, Tennessee, Atlanta, Georgia, Wilmington, North Carolina, and Wake Forest, North Carolina.

Carolina Hemp Company is a whole distributor of high-quality goods, based in the beautiful mountains of Asheville, North Carolina. The company’s mission is to bring balance through hemp -- throughout the entire United States.

The company currently sells premium CBD oil (for both humans and pets), hemp flowers, pain creams, CBD coffees and teas, edibles (gummies and other food products), apparel, vape accessories, educational materials, and beverages.

“We are thrilled to see so much interest from franchisees so quickly,” says Founder, Brian Bulman. “I believe this proves that our message resonates with people looking to get into the hemp space. The passion and intensity of our newest franchise partners is very refreshing.”

The company plans on opening over 200 stores by 2023, with a lot of interest already coming from Texas and the Southeast part of the United States.

“Our expansion into multiple states is a natural progression for Carolina Hemp Company,” says Chief of Positivity, Greg George.

“Becoming the next GNC of the CBD/Hemp retail business requires rapid expansion into multiple states.”

To learn more about becoming a Carolina Hemp Company franchisee, please visit the Carolina Hemp Company’s website at www.carolinahempcompany.com

Woof Gang Bakery Unleashes First Ohio Store in Cleveland with a Grand Opening Celebration and Free Dog Treats for a Year Woof Gang Bakery, the leader in specialty pet retail and grooming with 130 locations across the U.S., celebrated the opening of the company’s first Ohio store in December with a grand opening event.

The new Woof Gang Bakery location is a locally-owned franchise, offering professional pet grooming and a wide selection of healthy pet foods, gourmet baked treats, toys, accessories and pet supplies.

The store is located at 20075 Chagrin Blvd., in the Shaker Heights Van Aken District.

Throughout the grand opening event, customers could enter to win “pawsome” raffle prizes including free pet food for a year, free dog treats for a year, stylish collar and leash sets, a gift basket filled with dog toys and more pet pampering products.

Ohio natives Natalee and Joe Gilk are the franchise owners of the new Woof Gang Bakery store. With Joe’s 26 years of experience in the pet industry and an qualified retail team, the Gilks bring expertise and commitment to the well-being of their furry clientele.

“Because we adore animals and know that pets are a part of our families, it’s our goal to provide our customers with personalized service, meet their individual needs and provide them with the best products and grooming services to keep their pets healthy and happy,” said Natalee Gilk.

To learn more, visit woofgangbakery.com

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retail Franchising Feature

Over the last decade the retail industry has expanded and changed to the many demands of the public. Years ago, shoppers had a tendency to be drawn to name brands, and logos that represented importance and wealth. Now, customers are looking for style, convenience and frugality.

The franchising world has been consistently flexible with the mainy styles and requests of their retail shoppers. Once known for huge branding and marketing, retail franchises now explore the many different styles and budgets of customers, as well as trends both in fashion, design, desires and spending habits.

People want quantity over quality in some aspects, but are willing to pay for big ticket items: a pair of rain resistant boots, or a solid thermal winter coat, a vacuum with a long life, or a high end laptop and case.

While they are also satisfied with a bag of t-shirts that get the job done, just the same as any high-end brand tee. Shoppers are more likely to fill their cart at a dollar store with everyday items than pay for a well known brand of toothpicks or handsoap, for example.

There are very peculiar and fickle buying habits exhibited in the retail world as there are so many styles and considerations to adhere to, but the franchise industry has figured out how to follow spending trends and work directly within it to garner success.

The retail franchise covers a lot of lines of products. Though there is a tendency to think of clothing when considering retail, it can expand to other types of franchises: health and beauty products, furniture and home accessories, even groceries stores are a form of retail, to name a few. The

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“Though there is a tendency to think of clothing when considering retail, it can expand to other types of franchises: health and beauty products, furniture and home accessories, even groceries stores are a form of retail, to name a few.”

“People want quantity over quality in some aspects, but are willing to pay for big ticket items: a pair of rain resistant boots, or a solid thermal winter coat, a vacuum with a long life, or a high end laptop and case.”

Grocery Stores

definition of retail sales is essentially just the sale of goods to the public.

However, over time, retail has expanded well beyond simple goods. It’s not just about what people need, but rather what they want.

With the introduction of the internet, the retail market has opened its doors to accessing more buyers and even more products. Some products are exclusive to online shopping, while some sales are only available on websites. Most importantly, online sales have increased access and in turn, more profit. Online retail sales rose to 10% in 2019, compared to less than 2% in the first quarter of 2003 (source: https:// qz.com/1677747/americans-are-spendingway-less-time-shopping).

While online shopping is up, visiting stores for retail needs has decreased. Customers

are more likely to visit stores that provide more than one type of good. Rather than

hit up a clothing store, that only provides

such, they rather visit stores with all their needs met: food, appliances and clothing

all under one roof. Nowadays, consumers needs in retail are based on convenience rather than specifics.

When it comes to retail, the new desires

and trends of the consumer determine the success of a franchise. Therefore, when considering an investment, it’s worth

taking a look into what exactly a franchise is offering and if the franchise has

responded well to previous variables that consumers had demanded.

What once was considered a food market, is now so much more. Chains have reacted to the desires for one-stop-shop. Aisles that used to be filled with canned goods, boxes of cereal and pasta sauce are now filled with health and beauty products, children’s toys and even clothing lines. Grocery store franchises have responded to the needs of its customers and extended sales revenue beyond food. Increasing profit by addressing other retail desires, the grocery store is a good investment.

When reviewing the grocery store options, a good understanding of the direct competition is necessary but also a list of the many services offered helps determine the rate of success. Pick up services are popular, so customers can avoid going into the store to pick up groceries. While online shopping for clothing and other products are an option in some stores - all options broaden the breadth of consumers

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tomers are “With climate change on the rise, cus print. People are more conscious of their carbon foot ad of constantly willing to look for used goods inste indirectly to global buying new products and attributing warming.”

and could lead to more profit. However, more services could create more work and expectations, which might not create the work-life balance a franchisee is seeking.

Clothing Stores The average person spends $161 on clothing a month, meaning there is some buying power behind clothing retail franchises. During the recession, a lot of clothing stores failed to keep up with the demand, while others survived the drought and managed to not only provide trends, but also budget-friendly options to survive the demands of the economy. Since then, clothing stores without large price tags, but stylish options have become more popular.

People care less about logos, and more about affordability.

When looking at franchises specializing in clothing, it’s wise to consider all genders and children’s options as well.

Since shoppers enjoy shopping in one location, the more products offered within a franchise the better. Being able to get everything for the whole family in one

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place is appealing to customers, and gains more profit in the long run. It’s important to have women’s clothing as they spend closer to $150-$400 monthly and spend approximately 76% more than men on clothing.

Again, does the store provide good online services and how do the online sales impact a franchisee directly? Some franchises offer the option to have clothing shipped directly from a store location for online purchase, to which the franchisee benefits from the profit.

Consignment and Second-hand Stores With climate change on the rise, customers are more conscious of their carbon footprint. People are willing to look for used goods instead of constantly buying new products and attributing indirectly to global warming.

Though what might seem like a smaller scale operation, secondhand good sales reached over $1 billion in the US by

August 2019 (source: https://www.statista. com/statistics/879217/us-retail-usedmerchandise-store-sales-on-a-monthlybasis/). Franchises have recognized the profit and business opportunity in second hand goods with great scale stores providing the many needs of climate conscious and frugal shoppers. What was once monopolized by charities and small business owners, is now a growing business opportunity. The benefit of a franchise is the operations, marketing and branding. A secondhand goods franchise has templates for success to gain profit from lower ticket price items and a reputation that customers recognize.

Overall the retail franchise offers many opportunities, those passionate in fashion have many clothing options to consider from high end to second hand goods that appeal to many different customers. To run a successful retail business and adhere to the variety of desires from the public, a franchise can guide investors in the direction that the consumers want and will keep up with the ever changing trends.

Look out for our next special feature:

FRANCHISES IN YOUR PRICE RANGE

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

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The public and policymakers need to understand franchising.

Our purpose

@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.

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Our Franchise

@OurFranchise

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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!

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

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Expert Advice: Yan Krupnik | Director of Business Development | Retalon

Successful Retail Fulfil Requires Proactive Insig and Planning increase in order volume at any time.

Here’s everything you need to know about retail fulfillment.

Are your ‘convenient’ fulfillment options causing more issues than they solve?

Today’s consumers value efficiency and convenience. Options like in-store pickup, office delivery, local store shipping and more are extremely valuable to offer your customers.

Yan Krupnik

Retail fulfillment is exceptionally important for many franchises, but not everyone can keep up.

Here are some tips to get it right.

As a franchise retailer, you understand the importance – and the struggle – of keeping up with an ever-increasing volume of orders. It can be challenging and expensive to meet these demands if you’re unprepared.

That’s why it’s critical to have a solid “last-mile retailing” plan in place. Slow or disorganized fulfillment can lead to costly consequences and damage your relationship with customers, especially during particularly busy sales seasons.

Late deliveries, running out of inventory, and orders with missing products can be detrimental to your brand’s reputation.

You must be ready to handle a swift

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Flexible fulfillment options translates to satisfied customers and a competitive edge.

However, according to a recent Gartner report, retailers who go above and beyond with these options often end up spreading themselves thin. As Gartner VP Analyst Robert Hetu says, retailers often end up negating their revenue gains by spending excessively on options like same-day delivery, free shipping and free returns.

While the value of these fulfillment options a consumer is obvious, these systems and practices must be must be carefully monitored and managed to make it worth it for the retailer.

Take BOPIS (Buy Online, Pick Up In-Store), for example. With BOPIS, consumers can avoid shipping fees and pick up their product on their own time.

Additionally, customers often end up making in-store impulse buys when they pick up their online orders. By displaying small items and sales/deals near the pickup register or customer service desk, you may be able to trigger more purchases.

However, if brick-and-mortar retailers aren’t keeping an eye on in-store stock as they fulfill online orders, they might run

out of inventory and lose out on regular sales. If you typically fulfill your online orders from a warehouse, you might miscalculate or underestimate the amount of stock to allocate to your store shelves.

If you fulfill online orders from your store inventory, your warehouse may end up overstocked, which ties up valuable cash and space.

Before you invest in and implement any type of “convenient” fulfillment option, you must ensure that your e-commerce, store and DC systems are fully aligned.

It’s important to prioritize offers that work best for your business, considering both convenience and fulfillment speed.

Be proactive about order fulfillment by utilizing the right technology Predictive analytics has become a popular buzzword in the retail world, and for good reason. This technology helps retailers understand how much inventory they need to purchase and where it needs to be allocated (warehouses, store locations, etc.) for optimal order fulfillment, long before those orders are even placed.

These predictive systems also provide better visibility into future orders, consumer behavior and demand. They allow your business to proactively account for a multitude of factors – seasonality, geo-demographic diversity, competition, promotions, consumer demand, current and future inventory levels, etc. – which is impossible to do efficiently in a manual way.

Finally, AI-based retail solutions can help retailers handle returns seamlessly and

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cost-effectively. For instance, a predictive analytics platform can recommend where to restock returned items so that they go to the store most likely to sell the product again.

No matter where you are in your business sales cycle, you should always be working on your franchise system’s fulfillment plan to prepare for an increased volume of orders. Without a plan or the right tools in place, you’ll be left scrambling to keep customers satisfied.

Yan Krupnik is the Director of Business Development at Retalon. Founded in

2002, Retalon is an award-winning provider of advanced retail predictive analytics & AI solutions for supply chain, planning, merchandising, inventory management, pricing optimization, with a transformational approach to the retail industry. From inception, Retalon solutions were built on one unified platform powered by advanced mathematics & AI resulting in higher accuracy and the ability to optimize unique and complex retail processes. www.retalon.com

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

Retail Franchisin Still Going Stro

During the holiday season many people frequent retail franchises and drive business to those locations.

It might involve purchasing holiday decorations at the nearby Ace Hardware, shopping for gifts at your local Pet Supplies Plus or getting together with

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friends to try that new Popeyes Chicken Sandwich that everyone is talking about.

Many of these establishments have significant brand recognition, and their familiarity with its customers can mean big business during the holiday season.

Of course, not all retail franchises benefit from increased sales during the holidays.

Regardless, for those who are considering purchasing a retail franchise, there are several important things to know about the

benefits, challenges and overall outlook about these types of businesses.

What is a Retail Franchise?

Retail franchises operate from a storefront location and sell products and services directly to its consumers. They can

encompass a wide variety of industries, including food, clothing, health and

personal care, just to name a few. They can also be well-known brands with hundreds

ng is ong

“Retail franchising, like all other businesses, has its own set of pros and cons. Despite any economic downturns or competition from online retailers, it will always occupy a large slice of the American consumer landscape.” it is important to work with the franchisor to identify territories that will be able to support the business in that specific area.

In order to grow the business, owners will need to open additional units. Each of these locations will have its own radius of attraction around it. In some cases, this growth can be planned in advance and owners will sign a multi-unit development agreement. This contract contains language that includes the number of units that a franchisee will open and a specific time frame to have them operating.

Non-retail businesses tend to be more service-driven and can be operated from a home, office or warehouse. They generally have larger exclusive territories and don’t require multiple locations in order to grow.

Their business growth is more organic building up its customer base over time.

Is a Retail Franchise Right for You? Owning a retail franchise is not for everyone, and careful consideration should be given before investing in one. There are some unique aspects of owning a retail franchise that can be challenging to some people, but not a major concern to others.

It depends on the individual’s comfort level and what they want to get out of the ownership experience. or thousands of locations across the

country, which is part of their value.

Location, Location Location.

One of the first and most important

decisions revolves around location. Retail

businesses typically attract customers from a several-mile radius, and their success if often determined by high visibility, easy access and strong, consistent in-store

traffic. When considering retail franchises,

First, most retail franchise have extended hours. Since business is dependent on customers coming through the door, those franchises need to be open not only during the day but also when people are most available to come and shop. That often means hours in the evenings and on weekends. Running a retail business is not a 9-to-5 operation, and people should be prepared for that.

To cover these long hours, a franchise owner will need to be comfortable hiring, training and managing a large staff. It

Rick Bisio

“Owning a retail franchise is not for everyone, and careful consideration should be given before investing in one.”

can be a challenge to find and retain good employees, especially when the workers can be younger and some positions are only part-time. Turnover is inevitable and the experience of having to fire someone is unpleasant. Human resources is a big part of owning a retail franchise, and that only increases if there are plans to add multiple locations.

Although operating longer hours and managing a large staff is part of owning a retail business, franchisees don’t need to be there from open to close and make every personnel decision. Many retail franchises can be manager-run, in which the owner can hire a manager to oversee the day-today operations. That situation is often not

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

“There are some unique aspects of owning a retail franchise that can be challenging to some people, but not a major concern to others. It depends on the individual’s comfort level and what they want to get out of the ownership experience.” the case with non-retail businesses.

Having a manager-run model is a distinct advantage in owning a store-front operation and it helps greatly when a franchisee wants to scale their business by adding multiple locations. The owner doesn’t have to actively run each location and can focus on growing their business.

In some cases, people can keep their fulltime job while starting off in franchise ownership, which allows them to maintain some income while initially building their business.

In some cases, retail franchises also come with a degree of brand awareness. If someone buys a SuperCuts franchise, they are benefitting from the customer’s knowledge and comfort from the brand, giving them edge over a local mom-andpop barber shop.

The only problem with that, however, is that this advantage comes at a premium for retail franchisees. They have a higher amount of fixed costs, with inventory, employees, insurance and the lease and maintenance of a physical storefront location. People should anticipate this added cost and be able to build an accurate P&L to project when their revenues will be able to meet and exceed their expenses.

As a franchise coach, I hear from a number of people who are concerned how a potential recession in the future may impact a retail franchise. My response is that retail businesses and franchises don’t necessarily change based on the economy.

The key factor is what industry the franchise is in. If someone owns a retail franchise that provides low-cost haircuts, it will probably be fairly recession-proof.

But if it is a retail franchise that does

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high-end framing and the economy goes down, then the number of customers may decrease as well.

Retail franchising, like all other businesses, has its own set of pros and cons. Despite any economic downturns or competition from online retailers, it will always occupy a large slice of the American consumer landscape. People who are interested in a retail franchise will just need to think about these factors and determine if it is the right fit for them.

Rick Bisio is a leading franchise coach with FranChoice, the creator of the FDD Exchange and the Franchise Glossary and the co-host of Rick Bisio’s Franchise Focus. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. www.afranchisecoach.com/the-coach

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