FranchisingFeature retail franchising
december 2 0 1 6
7-eleven superstar talks franchising
chicken or egg site selection and leasing Franchising USA
Upscale Resale Franchise Clothes Mentor Attracts New Customers The lively shows were both entertaining and educational, as models showcased the hottest fashion trends for plus-size and millennial women while the experts elaborated on the tastes, lifestyle, shopping preferences and more for these customers.
NTY Franchise Company’s flagship resale brand Clothes Mentor is expanding its fashion focus, attracting two new customer groups: plus-size and millennial women. Launching the push to better serve these demographics at this year’s conference
in Minneapolis, the company produced two exciting fashion shows hosted by Mall of America trend expert Sara Rogers and featuring fashion bloggers Amanda Williams (mybellamoxie.com) and Davee Ek (daveesecrets.com), both nationally recognized in the plus-size and millennial spaces.
Building off of the runway excitement, franchisees continued to learn more about Clothes Mentor’s new plus-size and millennial customers during in-depth training sessions. Topics included digital and data-driven marketing, the personal shopper program, maximizing social media and more—all of which have helped Clothes Mentor stores speak to new and existing customers on a more personal level than any other women’s fashion resale franchise in the country. Franchisees left this year’s Clothes Mentor conference energized and inspired to make 2016 a big year by welcoming new plussize and millennial customers into their stores. www.clothesmentor.com
Unishippers Global Logistics Recognized as a Top Veteran-Friendly Franchise
Unishippers Global Logistics, LLC, the nation’s first and one of the largest small package and freight shipping resellers, has been named a top franchise opportunity for U.S. Veterans in the annual Military Times “Best for Vets: Franchises” rankings, coming in at no. 36. This is the third consecutive year the company has been named a top veteran-friendly franchise.
The Military Times ranking was based on a comprehensive survey asking franchises to reflect on their company culture, performance of existing franchise units, investment level and other beneficial support offered to veteran and active-duty service members. “We enjoy seeing time again how compatible our business model is with the skill set and discipline that veterans
gain during their military training,” said Kevin Lathrop, CEO and President of Unishippers Global Logistics. “In addition to the 20 percent franchise fee discount, Unishippers is always looking for ways to make the transition into logistics a smooth and rewarding business venture for veterans by providing ongoing resources and support.” For veterans eager to jump into a proven system, Unishippers has shown steady annual growth, with system-wide revenues reaching upwards of $450 million and the addition 20 new franchise owners last year. www.unishippers.com/content/franchising/
Repicci’s Announces Partnership with Cardiff International Repicci’s Italian Ice & Gelato’s new Mobile Franchise Opportunity, as featured in a 2016 Franchising USA article, is on the move! 2016 has been great year for the Repicci’s Mobile Franchise. After receiving special invitations and participating in two of the year’s largest sporting events ever, the 100th running of the Indianapolis 500 and the Battle of Bristol, Repicci’s has continued their run in the fast growing Mobile Opportunity category. Repicci’s is proud to announce their affiliation with Cardiff International, as a subsidiary of their dynamic company. This partnership positions the brand for rapid growth and will position the brand among the fastest growing mobile opportunities available. Repicci’s is leading the pack and most certainly can assist you in crossing the finish line in first place. Training for two of Repicci’s Newest Franchisees located in Daytona Beach & Charlotte was just completed in Atlanta at the Corporate Training Center. The announcement of the new “Hot Station” that includes Imported Italian Coffee, Hot Chocolate and Tea adds to the companies’ already award winning products, where you not only have flavors for all ages but now have products for all climates – 12 months out of the year. www.OwnaRepiccis.com
Zenoti Enhances Customer Experience with Mobile POS Innovations Wouldn’t it be great if your customers could check in, enjoy their spa experiences and walk out without the hassles of tedious check-outs at busy front desks? Or, if you could capture more business by servicing customers that are relaxing poolside - perform the service, and accept a signature or payment, all without them getting up? It is all possible now – thanks to Zenoti’s mobile POS. Zenoti’s leading platform is engineered for reliability and scale, using enterprise-level technology made available to businesses of all sizes from the single location brand to chains with over 200 outlets. Zenoti clients, now 5,000 doors strong worldwide, are choosing the software to streamline their businesses, increase customer loyalty, drive revenues and cut costs. The addition of mobile POS will afford businesses the ability to dramatically enhance customer experience with conveniences such as mobile check out’s. Zenoti’s mobile POS enables spas, salons and fitness centers to make customer convenience paramount and go where their customers are with a “mobile front desk.” Chair side check-outs are only just the beginning to this powerful tool. Think, seamless check-out’s prior to even leaving the spa treatment room to avoid the hassle of busy front desks, or additional service bookings made pool-side. To learn more visit, www.zenoti.com
A Decade of Calm — Elements Massage™ Franchising is 10 Years Old
In 2006, Elements Massage™ (Elements) became the first massage therapist-inspired, national franchise system. This year, the Elements franchise system celebrates its 10-year anniversary with 230 studios spanning 36 states. The franchise was built on a simple business model with one single service offering, therapeutic massage. The simplicity of the model eliminates the complexity of inventory and multiple services and allows Elements Massage to do ONE thing, better. In addition, most Elements Massage franchise owners have managers in place to run the day-to-day operations, which allows owners to keep their day job and/or focus on driving the business. While a lot can change in 10 years, in the case of Elements, some very important factors remain the same and have supported the brand’s continued growth and success: • The management team brings nearly a century of combined franchising experience to the table to support franchise owners and expand the brand. • 20.1% y/y Same Studio Average Revenue Increases* **As noted in Item 19 of the Elements Massage March 2016 Franchise Disclosure Document.
Tint World® Recognizes Franchisees with 2016 Awards Tint World® Automotive Styling Centers™ awarded franchisees at their ninth annual National Franchise Convention, October 31 in Las Vegas, Nevada.
Randy and Austin Silver, a father and son team who own a store in Cary, North Carolina, won the Franchise of the Year Award; Rodney Theil, owner of the Grapevine, Texas store, won the Best Performing Franchise Award; Michael Richards, owner of the Naples, Florida store, won the Most Improved Franchise Award; brothers Donnie and Steve Saucier, owners of the new Gulfport, Mississippi store, won the Rookie of the Year Award; Cary Lopez, owner of the West Palm Beach and Boynton Beach, Florida stores, won the Local Marketing Impact Award; Danny Rios, owner of the San Antonio, Texas store, won the Franchise Mentor of the Year Award; Tim Kjaer, owner of the Long Island, New York store, won the Top Gun Franchise Award; and Danny Shenko, owner of the Fort Lauderdale, Florida store, won the New Franchise Ambassador of the Year Award. In addition, several franchise owners won Customer Service Excellence Awards. To see the full list of award winners, visit www.tintworld.com/2016awards.
Big O Tires Franchisees Honored with IFA’s Franchisee of the Year Award Big O Tires® franchisees Dutch and Jacqui Tryon of Topeka, KS were honored in September by the International Franchise Association with its annual Franchisee of the Year Award. “IFA is proud to recognize Dutch and Jacqui with the Franchisee of the Year award,” said IFA President & CEO, Robert Cresanti, CFE. The Tryons are top performers in the Big O Tires organization with their focus on operational excellence and customer satisfaction. “Dutch and Jacqui are exceptional operators and community leaders,” said John Kairys, Executive Vice President and General Manager of Big O Tires. “The entire Big O Tires network is extremely proud of them and has learned a lot from them both throughout the years.” The Tryons joined the Big O Tires organization in 2005 when they opened a store in Topeka, KS. In March 2011, he
opened a location in Lawrence, KS.
have been presented with as members of
“Jacqui and I both love what we do and
the Big O Tires organization and of all of
and every day,” said Dutch. “We’re
truly enjoy serving our community each
the relationships we have made through
appreciative of the opportunities that we
BareBones WorkWear® Expands Again with 3-Unit Veteran-Owned Franchise Investment Workwear is one of the burgeoning categories of retail clothing stores internationally. Bare-Bones has earned high praise for
bringing many products, brands and embroidery services under
one roof making it convenient to find the right work apparel and gear that supports safety and comfort on the job. Employers and men and women who work hard for a living and endure rugged weather and environmental conditions are seeking rain gear,
scrubs, durable clothing, work boots, safety gear, hard hats, and more at pre-discounted prices.
BareBones WorkWear® was named to Inc. Magazine’s 5000 Emerging franchisor, BareBones WorkWear® announced the opening of the first of three more Veteran-owned BBWW franchises in California. Brett Parent, a construction worker, master electrician and veteran of the Air Force Reserves, his
Fastest Growing Private Compa-nies in America for 2015. Like
the original corporate stores, the franchises feature a wide array of quality brand names including Carhartt, Dickies, Ariat, 5.11, Viking, Timberland, Keen and many others.
wife Dorothy and son Heath, have invested in three new units
BBWW is an active member of IFA, VetFran and FBA.
of the fast growing workwear specialty retail store.
7-EL E V EN
LET’S TALK FRANCHISING WITH A 7-ELEVEN SUPERSTAR We could easily give you a long list of reasons why franchising with the world’s #1 convenience store is smart and easier than you think. But we don’t want you take it from us. We’d rather you listen to someone who’s doing it exactly right. Meet Adam Radogna, a successful 7-Eleven Franchisee who took time out of his day to answer a few questions about his career. Adam is doing an extraordinary job, so if you’d like to know more – and if you happen to be in the Cleveland area –
stop by his store for a visit. He’d be happy to answer your questions and show you around!
GETTING STARTED Q: What were you doing before you became a Franchisee? A: When I was 19 years old, I was
working as a third-shift employee at an ampm convenience store. I worked hard, and several months later got promoted to assistant manager, then manager. When 7-Eleven purchased the store, they offered me additional training and the chance to become one of their corporate store managers. So I took them up on their offer!
Q: Did you plan on becoming a Franchisee? A: Not really. But as manager, I was
already running the store as if it was mine. I also knew a lot about the business and had a growing passion for my work. And I definitely like the idea of being my own boss. Franchising seemed like a smart career decision.
Q: What surprised you most about the franchising process? A: It was fast and easy! After doing some
research, I went to a franchise seminar, applied and got approved. I also had access to my own Franchise Sales Representative, who was always available to answer my questions. The entire process moved very quickly and the changeover was smooth. It was exciting to have everyone there to help celebrate my grand opening.
Q: Was it difficult to finance your franchise? A: I actually received financial support
from two programs offered by 7-Eleven. The Store Manager Franchise Support Program offered me financial incentives because I was already a corporate store manager.
I also chose a Zero Franchise Fee store, which is a lower-volume store that’s offered with no franchise fee. The program required very little money down, and 7-Eleven even helped with financing. I got a great deal!
“We’ve gained new customers through the 7-Eleven app. ... During the seven months since I’ve taken over the store I’ve seen a 6-10% sales increase every month.” Q: In your opinion, what are your strengths and how have they helped you succeed?
Q: What does it take to succeed as a 7-Eleven Franchisee?
A: I’m passionate about the convenience
A: Of course, it takes patience, time and
business. It’s something I know and love – so it doesn’t feel like work. I’m also
positive. I know it’s not a perfect world, but being positive makes everything a
lot easier. I also have a good work ethic,
which has definitely helped me get this far.
involvement in the business. I’ve also found that thinking outside the box helps, especially when it comes to customers’ needs.
Q: What do you mean by “thinking outside the box?”
another store, which would make me a
A: It just means bringing in merchandise that you know your customers will be looking for. It helps to wear your entrepreneur hat when making these decisions.
decide in the future, I know 7-Eleven will
Q: Can you give an example?
Q: What’s next for you as a Franchisee? A: Right now I’m planning on getting
multiple-store Franchisee. Whatever I help me succeed.
THINKING OUTSIDE THE BOX Adam explains how innovative thinking
and customer loyalty play a big part in his success as a Franchisee.
A: During the NBA playoffs and after
the title win, I experimented by bringing in Cavaliers T-shirts to sell for $5. I sold $3,000 worth of shirts, so obviously it was something customers wanted. I’ve also ordered yard mulch three
7-EL E V EN well worth it. The store and neighborhood you choose have to be a good fit. It really is a big part in your success.
Q: Tell us a little about your neighborhood. Why do you think it was such a good fit for your 7-Eleven franchise? A: My store is located between three
cities and is on two major roads. It’s also a half-mile from a major highway. This means I’m able to capitalize on the commuters as well as the residents and employees in nearby businesses.
Q: What do you do to help build relationships with your customers and your community? A: For the past two years I’ve made
contributions to the local high school and middle school. This includes grants, coupons and snack donations for PTA events. I’ve even participated in the schools’ fundraisers.
separate times and sold out of all three deliveries. This was not offered in prior years, and it’s not something you’d expect to find at a convenience store. But I had a feeling it was something my customers would be interested in.
Q: How does 7-Eleven help you offer what your customers want? A: For starters, our product assortment is huge. 7-Eleven also gives me lots of flexibility when it comes to choosing what to stock for my customers. Expanding and changing the assortment is also something I’m able to do regularly. Q: Are there other ways 7-Eleven helps you build customer loyalty? A: We’ve gained new customers through the 7-Eleven app. Coffee and fountain sales as well as hot food sales. I’m also getting lots of customer compliments through the Voice of the Customer portal. Franchising USA
During the seven months since I’ve taken over the store I’ve seen a 6-10% sales increase every month.
Q: In your opinion, what keeps customers coming back? A: That’s easy. Excellent customer service, retailer initiative – which is basically carrying products customers want, listening to customers, store cleanliness and fresh, hot food and grill options. BEING A GOOD NEIGHBOR The location of a 7-Eleven Franchise is a big deal. Not only will it play a part in how much traffic is driven to your store, location is all about community. It’s the schools you support, the people you know and the neighborhood you serve.
Q: How important is your store’s location to its success? A: I always tell potential Franchisees to
do a lot of research before they choose a location. It takes time and energy but it’s
Q: Why is community involvement important to your store’s success? A: It helps to build mutual support. My
store is recognized in the community because of our involvement with local schools. One school put up a 7-Eleven banner in the gym because of the donations we’ve made. As a result, the teachers, faculty and parents patronize my business. And I always hear positive feedback from customers. ***
So now that you know parts of Adam’s story, you may be interested in our bigger Franchising story – especially if you’re the entrepreneur type looking for new ways to grow a career. 7-Eleven is consistently ranked as a top-five franchisor, our business model is turnkey and the support our Franchisees receive is hard to beat. Learn more at one of our free, 10-minute webinars, or at a seminar near you. Our website has details, along with other Franchising information. Visit us at http://franchise.7-eleven.com/ franchise/home.
Click here to find out more...
FRANGUIDE.COM 703-424-2980 FIND YOUR FRANCHISE WITH FREE GUIDANCE FROM INDUSTRY EXPERTS
b y G i n a G i l l Fr a n c h i s i n g U S A
e r u t Fea
The Beauty industry is customers are willing look good. In fact, the during With online shopping and so much competition, signature retail outlets are looking towards franchise options to help establish a brand and create continuous marketing support.
Apparel and Clothing Clothing used to be predominantly a female sector, but nowadays it crosses all genders and ages. There are retail options for men, women and children. While some franchise options specialize in one specific area, some cover all consumer choices.
With more options on the market, franchising opportunities have fluctuated throughout the years and hit an all time high in 2015.
Clothing can be sold at a high end, while also featured in an outlet atmosphere. Nowadays consumers are not as concerned about name brands and logos are they are with fashion. Itâ€™s created a highly competitive clothing market, but it also allows for more option and an ever growing industry.
There were over 780, 000 franchises in the US market last year and more retail options seeping into the industry.
For someone who has a passion in fashion, this may create a great work life balance. While those who have worked in retail,
will have an understanding of the methods and can escape the unpredictable schedule of being an employee in the field. The area of the store may be predetermined by current similar competitors or a mall layout so the physical location may not be an option. A clothing franchise should also express similarities between stores from coast to coast. There will be a lot of guidelines to follow, with a lack of creative expression in displays and layout since marketing, branding and reputation will already be well established.
Beauty Industry Women alone collectively spend over $400
is extremely popular and ing to break the bank to numbers stayed strong during the 2008 recession. billion on beauty products each year while women on average spend $15,000 on such products within their lifetime. It’s a multifaceted industry that covers a lot of different products and lines. There are soap retail stores, hair care, body care, make up outlets. The list is endless and it’s dominating the mall’s surface areas. With social media at the forefront of influence, people are concerned about their outward appearances at a younger age.
it has now reached a franchising level and
necessary to have training in the area, it
That being said, there are also franchise
The Beauty industry is extremely popular
to obtain a reputation and service in the
bank to look good. In fact, the numbers
Men are more concerned about their skin care and make up regime and it’s reaching more levels of consumer consumption than it ever had before.
opportunities that rely on professionals
A lot of beauty products used to be marginalized to beauty professionals but
that area might find a business opportunity
beauty industry, including hair salons and esthetic spas. A well trained person in within a franchise. Though it is not
would certainly be an asset
and customers are willing to break the
stayed strong during the 2008 recession. So for those who are interested in the
retail field and want a guaranteed profit, this could be the best bet.
b y G i n a G i l l Fr a n c h i s i n g U S A
Technology and Gadgets Smart phones and Laptops are here to stay and it has become a part of our everyday lives. It was only a decade ago that iPhones and flat screens were things of luxury, with customers saving for months to purchase high-end pieces of technology. But nowadays, these gadgets lie around the majority of peopleâ€™s living room and are essential to the household. The average person spends close to 127 minutes on their phone everyday and they are willing to shop for it. Most retail venues are competing with online shopping while digital retails can take advantage of there specific knowledge to bring costumers into their doors.
The majority of people are not wellversed in technology and want a specialist to help them make those high end purchases. They arenâ€™t willing to risk purchasing these products online.
The majority of people are not well-versed in technology and want a specialist to help them make those high end purchases. They arenâ€™t willing to risk purchasing these products online. However, one of the downfalls in this field is that there are a lot of cellular service providers sell phones with contracts and it depletes digital retail performance. However, digital outlets are specializing in numerous products from DVDs to cameras
and office supplies, making it easy to gain profit. A franchise in this area has the experience, reputation and training to help get your started, while most of the products have well-known brands and marketing. Consumers are already dedicated to this industry and are already loyal to certain stores.
A retail franchise may have a lot of competitors and that is a downfall, however, it usually comes packed with branding, reputation and a lot of support from head office.
Home Improvement and Décor People want to their home to be the most esthetically pleasing; it’s the place we want to be and the place we are always aiming to get towards. People have higher standards for their home and are willing to spend money on décor and renovations. More and more people are learning about home improvement and willing to take a stab at it themselves so they can enjoy their home to its best capabilities. Home improvement retail stores also offer a huge variety of products, from flooring to windows, to appliances and furniture. The majorities of purchases is higher ended and foot a large bill. In fact it is estimated that US improvement and repair expenditure amounted to $326.1 billion last year. Any retail option would benefit from a franchisor with past retail experience. Someone who has been on the floor, with a background in customer service would be beneficial to the operations overall, however it is not necessary. Those with a field of knowledge with the products may also contribute to a successful outcome but it is not vital to the operations or profit of a franchise. A retail franchise may have a lot of competitors and that is a downfall, however, it usually comes packed with branding, reputation and a lot of support from head office. It’s a safe bet, while also providing a lot of choice dependent on the franchisor’s passion. 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: SENIOR CARE FRANCHISING Franchising USA
Sarah Kulbatski, Director of JT Corporation
Local Store Marketing Success Business owners can easily get too involved in the day-to-day operations of their retail stores, like spending time brainstorming marketing ideas or promotional events. Sarah Kulbatski
Some retailers worry that marketing is too expensive, others may find it too time consuming. Without announcing who you
are and what you sell, how will anyone know? As a franchise owner, marketing is an integral part of your business. Without marketing, all aspects of your business will suffer. With marketing, you can achieve your ultimate goal â€“ a profit. Broadly, marketing is everything that you do â€“ individually and in conjunction with the franchisor â€“ to get your product from the manufacturing area and the kitchen to the guest. This includes suggestive selling on the part of your employees, your pricing, your menu, packaging, display,
advertising, promotion, community activity and public relations. The most effective marketing plan, at the store level, should have more than just advertising or promotions. Your marketing mix, in order to maximize results, should have a combination of advertising, promotions, merchandising, community activity and public relations. It is the synergy of all of these elements working together, that will bring you the maximum return for your marketing investment. When you lay out your marketing calendar, be sure to consider each of these elements of your marketing mix:
INSTITUTIONAL ADVERTISING To project the proper image as well as build and maintain consumer awareness within your trading area of what you are, where you are and why you should be patronized.
PROMOTIONS To build traffic, you can emphasize certain days or hours for specific product promotions.
IN-STORE MERCHANDISING To promote specific products, for example, your menu.
LOCAL STORE MARKETING / P.R. To firmly establish your store as part of the community and further project a favorable image among your guests, particularly in your immediate trading area. Localized, “grass roots” marketing. Franchisees benefit from both national and regional advertising: the store that has a local store marketing plan can achieve higher customer counts, increased sales, and better brand awareness in the local market than those who do not. Local Store Marketing (LSM), one of the most valuable tools and a sales plan arsenal that is frequently overlooked, is also known as “neighborhood marketing”. LSM is a specific program, targeted to a specific group or groups of potential customers, within a trading area, to create
“Local Store Marketing (LSM), one of the most valuable tools and a sales plan arsenal that is frequently overlooked, is also known as “neighborhood marketing.” awareness and initiate trial purchases of your product with potential customers right in your own backyard - the three to five-mile radius around each store location. Some programs that retailers have found successful: 1. Printing the products they sell on the back of their business cards. 2. Distributing specialty items such as pens or mouse pads with their logo. 3. Collecting customers’ mailing addresses, by having a draw for a product or a gift certificate. 4. Donating their product to a charity event or auction, or volunteering their time to a charity or non-profit organization. 5. Picking the slowest day of the week to hold a one-day “special”, for example, pairing up slow moving items with related products and repackage as a special buy. Programs, such as the ones above, are created to: 1. Enhance the store’s image in the community 2. Increase customer loyalty and build brand awareness 3. Grow store traffic and sales 4. Develop involvement and recognition within the local community The key to success with Local Store Marketing is creating community partners, such as those business and non-business organizations, that interact with potential customers in the trade area, for example, the Yellow Pages, the Chamber of Commerce, local community newspapers, and even the building department. Select businesses or non-profit organizations that fit with the type of products your business offers. Determine what kind of potential
customers frequent the potential partner’s place of business or interact with the activities of the potential partner. Focus on partners whose customers/employees you would want to make your own. Local Store Marketing is an ongoing process intended to build sales over time. It is challenging and requires a consistent ongoing effort, commitment, creativity and lots of work. Plans need to be specific, measurable, planned, coordinated, executed all year long, with every store, consistently. This process ingrains the brand in the local community and the customer’s minds. If one builds or opens a store expecting guests to become loyal patrons immediately – the store will suffer. Local Store Marketing, both internal (inside the four walls of the store) and external (within 1-2 miles of your store), needs to be part of the store’s life. It is about building relationships, giving back to the community, creating a venue for activity or entertainment, and serving the needs of customers, within the 3-5 mile radius around the store for many, many years. The best part of Local Store Marketing is its rewards. Local Store Marketing can make such an impact on a community and drive sales, frequency, loyalty and awareness, that it can eliminate the need for other forms of advertising expenditures. It builds store awareness and visibility in the community. It grows sales by tapping the resources you already have, both in the store and in your local store market and it energizes your local team, to take an active role in the store’s success. Sarah Kulbatski is director of JT Corporation, a company specializing in franchise consulting and risk management. www.jtfranchising.com
Jeff Grandfield & Dale Willerton, The Lease Coach
Chicken or Egg Site Selection and Leasing Which Comes First, Finding a Franchisee or Finding a Site?
As we explain in our book, Negotiating Commercial Leases & Renewals FOR DUMMIES, there is a great deal for potential franchisees to consider before committing themselves to any franchise concept. Two of those factors include site selection and leasing. While we are strong supporters of franchising, we have found there are two very distinct systems in place when it comes to these two points. We will use the “Which comes first – The Chicken or the Egg?” analogy to put this into perspective.
“With the “Egg First” approach, some franchisors will do their real estate development homework initially, secure a site and use that site as a tangible platform from which to advertise and sell the franchise.” With the “Chicken First” approach, franchisors will advertise for prospective franchisees first, and then once the franchisee is secured, begin the site selection process. This site selection process may be done with or without the franchisee’s input. Why do franchisors use the “Chicken First” approach? Well, it lets them expand and uncover prospective franchisees in other cities without making any efforts on the real estate side. If no local entrepreneur steps forward in a specific city from advertising efforts, the franchisor will not have to fly and conduct site selection. With the “Egg First” approach, some franchisors will do their real estate development homework initially, secure a site and use that site as a tangible platform from which to advertise and sell the franchise. This can be more work, comes at a greater expense and is done far less frequently than the easier “Chicken First” approach. The “Egg First” approach to site selection is, however, far more advantageous for both the franchisor and the franchisee. We can’t tell you how often we receive calls from disgruntled franchisees who bought and paid for a franchise and maybe even went through training camp but are not open for business because the franchisor could not produce a “suitable site” for them. A major franchisor was recently forced to refund over a million dollars to franchisees partly for this very reason. However, when the franchisee knows in advance what location he/she will be leasing before he/she signs the franchise agreement, there are usually fewer grievances. There may still be complaints if the location is weak; however, these are less common because the franchisee knew in advance where the store would
eventually be located and many of the important leasing details (like the size of the store and the rent). In cases where the franchisor has pre-selected a poor site, the end result will be the same – low sales and an eventual store closure. With the “Chicken First” approach to site selection (where the franchisee signs on before a location is secured) there are numerous downsides and questions: • What if no location is found – does the franchisee release the franchisee? What if the franchisee has already quit his/her day job and has been waiting months to open his/her new franchise? This happened to a franchisee who eventually turned to The Lease Coach when her franchisor could not produce a “suitable site”. She had paid her money but was unemployed for almost a year waiting for a site (which, by the way, never did come to fruition and she walked away) • What if the site the franchisor produces is weak or questionable or to be located at a great distance from the franchisee’s home? Initially, the franchisee will spend a great deal of time with the new business. The franchisee may consider that a great distance to travel will be inconvenient and, in retrospect, would not have signed up with that specific franchise system.
assist the franchisees with lease renewal negotiations and relocations. Why is this story relevant? Well, just a couple of hundred franchisees own all of those 1000 franchise stores. The easiest way to expand your franchise system is when a single franchisee becomes a multiple store operator. And, if the initial store or location is weak, it will be more difficult for the franchisee to open more stores. If the franchisor forces a franchisee to take or lease a location he/she doesn’t want, is this person likely to open more stores for them? Obviously not - unless he/she profits despite objections. Therefore, it is in the franchisor’s long-term best interests to take the “Egg First” approach to site selection and leasing. By taking the latter approach to site selection and franchise expansion whenever possible, franchisors will build a stronger and more profitable franchise system. Franchisees will be happier and more profitable in the long run. For a copy of our free CD, Leasing Do’s & Don’ts for Franchise Tenants, please e-mail your request to JeffGrandfield@ TheLeaseCoach.com. Dale Willerton and Jeff Grandfield The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). www.TheLeaseCoach.com
• What if the location the franchisor selects is too big, the rent is too high or the build-out costs exceed initial projections because of uniqueness to that particular site? We were hired to speak to a 1000-plus store franchise chain. They had invited us to give several real estate training sessions at their annual conference. Even though the franchisor initially provided some real estate support when the stores were opening, the franchisor did not
Matthew Jonas, President, TopFire Media
How Corporate Support C Foster Local Franchise S National brand recognition and visibility are of grand importance for any retail brand when it comes to generating consumer interest, and ultimately contributing to sales growth both online and in-store. Organizations spend millions of dollars per year to market their brand, and whether through digital media or traditional advertising, most large-scale retailers have a complex strategy in place
that ensures they drive sales success.
Searching for a deal
In addition to a national brand effort, a real opportunity for retail gains is held within the ability to market locally to the appropriate audiences, driving the in-store foot traffic that generates revenue and further validates the retail brand to those in target markets.
Search engine optimization (SEO) should be the heart of any localized marketing campaign. Truthfully, local SEO efforts are more complex than a traditional campaign, with a profound number of details and elements to consider. While there’s no silver bullet to rocket a local retail franchise to the top of search results, a few tried and true principles offer a great start:
In the highly competitive retail marketplace (especially around holiday time), it’s imperative for retail franchisors to educate their franchisees on the essential practice of localized marketing, and to support those efforts at scale with desired results. To do so, prioritizing an effort around local search, email and social marketing in part can bring consumers to stores in droves.
• Google My Business: Arguably the most important element of any local effort, Google My Business optimization can make or break a consumer’s ability to find a business on the web. Start by finding duplicates of the business page and removing them, verify the true
“While the web enables marketers to target globally, the world is perhaps smaller than ever. With consumers prioritizing vicinity, local marketing is now more important than ever.” Coupon craze Email marketing stands tall when it comes to driving retail sales and conversions. In fact, email has been one of the biggest revenue-driving channels for customers in 2016, accounting for as much as 40 percent of total revenue in some instances, and representing about 20 percent of retail traffic.
Can Help Success listing, get a NAP (name, address, phone number) in, and categorize the business properly. • Schema markup: Schema code helps search engines better understand a website. The code contains additional information about the business, including hours, reviews and more. To optimize locally, it’s essential to set up both “local business markup” and “review markup” within the schema code. Surrounding area meta descriptions: While never a shoe-in, by including surrounding cities of a businesses retail location, a business greatly increases the chances a searcher discovers a location when they pinpoint the city they want to explore.
Retail brands are certainly aware of these results, and should facilitate a local effort to bring a portion of those sales in-store. Current studies suggest a nearly 50/50 split when it comes to online and brick and mortar shopping, so centering an email marketing campaign around in-store only coupons has long legs. Whether it’s offering a percentage off, a buy-one-getone or any other number of incentives, focusing on driving location traffic is essential to sales and growth.
Social shopping Delivering the right message, at the right time, to the right people — the guiding principles of any quality marketing effort. For social media marketers, the ability to target specific audiences is a top-tier benefit of any strategic plan, and highly beneficial to a retailer’s ability to get consumers through the threshold. Many retail brands have thousands, or even millions, of fans between Facebook, Twitter and other active social platforms. Within these networks lives a grove of information about consumer interests and demographics, so even with the large following marketers can accurately pinpoint and target consumers. For example — Facebook’s audience targeting enables marketers to apply a radius from a specific retail location to promote in-store only deals to those within that radius. Even consumers who haven’t become fans of a brand yet can still be targeted through promoted content and advertising.
Make the sale Driving national recognition and exposure is priority for any and all franchise retail brands, with that awareness trickling down and benefiting local franchisees. In addition, by implementing a local marketing effort, retail franchises can proactively drive foot traffic and in-store sales, a benefit for the franchise as a whole. While the web enables marketers to target globally, the world is perhaps smaller than ever. With consumers prioritizing vicinity, local marketing is now more important than ever. Matthew Jonas is the president of TopFire Media, an award-winning integrated public relations and digital marketing agency specializing in franchise marketing and consumer branding. Together with the leaders of iFranchise Group and Franchise Dynamics, Jonas established TopFire Media to provide a strategic and synchronized method for digital marketing in the franchise industry. As a digital marketing strategist with more than a decade of in-depth experience in SEO and PPC, social media publishing, conversion based marketing, inbound marketing, sales management, and online lead generation, Jonas has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com
Published on Nov 30, 2016
Retail and Franchising December 2016 from Franchising USA. Cover Story on 7- Eleven, Expert advice, news and profiles on the many Franchises...