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The Fall Franchise Chase! LATEST NEWS
naturalawn grow organically FINANCIAL ADVICE FROM THE BANKS
VOL 06, ISSUE 11, sep 2018
I was a Franchisee, Now I’m a Better Franchisor TOP LAWYERS’ ADVICE
GRAB A PIECE OF THE PIE WITH THE FASTEST GROWING PIZZA CHAIN IN AMERICA! *
Visit LittleCaesars.com or Call (800) 553-5776 to learn more about exciting franchise opportunities. *Based on 2015 U.S. store growth. Â© 2017 LCE, Inc. 62622
Franchising usa The magazine for franchisees
FRANCHISING USA VOLUME 6, ISSUE 11, 2018 president: Colin Bradbury. firstname.lastname@example.org
f r o m t he p u bl i s he r & e d i t or
Publisher: Vikki Bradbury. email@example.com
Editorial Department: managing editor: Diana Cikes firstname.lastname@example.org
Editorial team: Gina Gill Rob Swystun
DESIGN: Jejak Graphics. email@example.com
COVER IMAGE: NaturaLawn of America
CGB PUBLISHING Canadian Office: Sidney B.C Canada U.S. Office: 800 5th Ave, #101 Seattle, WA 98104-3102 Sales: 847 607 8407 Editorial: 778 426 2446 www.franchisingusamagazine.com Proud member of the IFA:
SUPPLIER FORUM International Franchise Association 1501 K Street, N.W., Suite 350 Washington, D.C. 20005 Phone: (202) 628-8000 Fax: (202) 628-0812 www.franchise.org
Welcome to the September issue of Franchising USA. With summer now over, it’s time to get back to business! If you were lucky enough to take some time off during the summer season, slipping back into work mode can be challenging; trust me, I feel your pain. So if an overflowing inbox and hectic meeting schedule has you suffering the back-to-business blues, I suggest you consider taking a few more days off from the office to attend the upcoming Franchise Expo Midwest from September 14-15 in Rosemont, IL. Register for free and join as our guest to take advantage of the opportunity to meet face-to-face with over 100 of the top franchise brands and get educated on how to be successful from the start through the over 30 free seminars offered. Our Cover Story this month features NaturaLawn, a lawn care franchise that has grown every year in gross revenue and customer count since its inception in 1987. Although there was little interest in the brand’s environmentally friendly approach to lawn care when it first started, the company has experienced substantial growth and is positioned to continue its expansion across the country. Turn to page 10 to learn how NaturaLawn evolved to become the nation’s leading organic-based lawn care franchise and the third-largest lawn care company in the industry. Our Special Feature this month is on Home-Based / Home Services
Franchising, with Pool Scouts on our Feature Cover. As a swimming pool service franchise, Pool Scouts has successfully expanded in 39 territories within nine states since it began franchising in 2016 and they plan on continuing this expansion in locations around the country. We sat down with Michael Wagner, President of Pool Scouts, to discuss what makes the company stand out from the competition so be sure to read the interview to find out. This month our Veterans in Franchising Supplement features Strategic Franchising on the Veterans Cover to discuss Life After Active Duty and Why Service-Based Franchises Are a Great Fit for Veterans. Honored to work with U.S. Veterans since its inception in 1994 within all 5 of its franchising brands – Fresh Coat, Caring Transitions, The Growth Coach, Pet Wants and TruBlue – Strategic Franchising is eager to continue working with potential new franchisees who are transitioning out of or have recently left the military. We’re happy to bring on another round of Ask the Expert this month, where industry expert Evan Hackel explores and answers readers’ questions about franchising. Have a question about your franchise? Email your franchising question to firstname.lastname@example.org and it could get featured in a future issue. Don’t forget to register now for Franchise Expo Midwest. The countdown clock is ticking so you better act fast! We hope to see you there. Happy reading!
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
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On the Cover 10 Cover Story: NaturaLawn: Grow Organically 14 I Was a Franchisee, Now I’m a Better Franchisor
58 The Fall Franchise Chase!
In Every Issue 6
Announcements from the industry
Home-Based & Home Services Franchising Feature
43 Veterans Supplement - News and Information
for Veterans in Franchising
63 A-Z Franchise and Services Directory
Focus 16 HealthSource
12 How Franchisee Experience Adds Important
Perspective to Franchisor Role Charles Bonfiglio, Founder and Chief Executive Officer, Tint World® LLC
18 3 Ways the Philosophy of Servant Leadership
Can Positively Impact Your Franchise Jeff Oddo, President, City Wide Maintenance
40 Five Things You Need to Know About Franchise
18 Franchising USA
Management Style David Banfield, President, The Interface Financial Group
58 The Fall Franchise Chase!
George Knauf, Senior Franchise Business Advisor, FranChoice
8 Ask The Expert
38 How Can I Keep My Employees Without Spending
Too Much on Payroll?
Evan Hackel, CEO of Tortal Training and Founder of Ingage Consulting
Home-Based / Home Services Franchising Feature
On the Cover 26 Pool Scouts Continues Expansion From Coast to Coast 32 Low Investment, High Margin Businesses 34 Mastering the Home-Based Franchise In Every Issue
22 Feature News 28 Feature Article Expert Advice 32 Low Investment, High Margin Businesses Make
Great Franchises Christopher Conner, President, Franchise Marketing Systems
34 Mastering the Home-Based Franchise
Peter Hans, President, Discovery Map International
36 Home-Based Business Are Cheap, But No Sure Thing:
Skills You Must Possess to Be a Successful Home-Based Owner Rick Bisio, Franchise Coach, FranChoice
58 Franchising USA
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what’s new! Ripley PR Launches Orange Orchard Division, Focused on Environment and Animal Welfare
Ripley PR, a Tennessee-based global B2B and franchise public relations agency, has launched a new PR division, Orange Orchard, dedicated to helping environmentally conscious and animal-friendly organizations effect change by taking their word out to the world. “Our philosophy at Ripley PR is that we want to live in a healthier, cleaner and kinder world,” said Heather Ripley, CEO of Ripley PR. “Working with businesses that are trying to make a difference in those areas fits with our own culture, and we can use our experience and knowledge to help organizations that share the same philosophy through our new Orange Orchard division.” The division will focus on eco-friendly, environmentally conscious, vegan businesses or animal-welfare organizations. Orange Orchard will also work with businesses working toward these goals culturally, or with a corporate social responsibility plan. “Globally, we are seeing a shift toward being better stewards of our planet: Restaurants and major franchise brands are adding
plant-based options to their menus, international companies are eliminating plastic waste in their packaging, and we’re seeing cruelty-free movements in clothing and fashion,” Ripley said. “Consumers are taking notice. We believe this is just the beginning, and we’re committed to not only our involvement in this world as a company, but in partnering with companies who share the same vision for our future.” For more information about Orange Orchard, visit www.orangeorchardpr.com or call 865-977-1973.
Minuteman Press International Goes Solar with SUNation Solar Systems Minuteman Press International, the top-rated business marketing and printing franchise headquartered in Farmingdale, Long Island, NY, has launched a significant initiative to move business operations in a more environmentally sustainable direction. As of March 16th, of this year, the company has converted to solar energy, enlisting SUNation Solar Systems of Ronkonkoma for the project. Minuteman Press is optimistic at the impact this decision will have on their business and their community. “Partnering with SUNation for our conversion to solar energy was easy and efficient,” says Bob
Titus, Minuteman Press International President & CEO. He adds, “Minuteman Press has strong roots in Long Island. We have been here since we established our family business in 1973 and since then we have expanded to nearly 1,000 franchises across five countries. Our world headquarters in Farmingdale continues to be our home base and we are thrilled that we were able to utilize SUNation, another industry-leading Long Island-based company, for our energy conversion.” Equipping their headquarters with solar energy sends a powerful message to Minuteman Press’ customers and worldwide franchise locations,
demonstrating a clear commitment to clean and responsible operating practices. This is further evident by the fact that they are also in the process of switching over all lighting in their 46,000 sq. ft. building to energy efficient LED technology. www.minutemanpressfranchise.com
Fork & Salad Brings on Important Leader to Support Company and Franchise Growth Lauren Mann will Oversee Operations at Existing Locations and Assist New Franchisees with Development
Fork & Salad, the Maui-based fast casual eatery specializing in healthy options and local Hawaiian flavors, has promoted longtime employee Lauren Mann as the brand’s inaugural Director of Operations and Director of Franchisee Management. In this position, Mann will oversee the daily operations of all Fork & Salad locations and provide new franchisees with the tools they need to develop, open, and operate their Fork & Salad franchised stores. Mann has spent the last four years working alongside Fork & Salad owners Jaron Blosser, Travis Morrin, and Cody Christopher at their full-service restaurant concept, Three’s Bar and Grill. She was first hired as a restaurant manager, quickly working her way up to the corporate management level. Founded in 2016, Fork & Salad was built with the purpose of helping to make farm-
to-table cuisine as healthy, convenient, and affordable as possible. The menu features a wide variety of healthy offerings such as sandwiches, salads, build-yourown options, and healthy beverages like housemade teas and organic kombucha. The Maui-based concept is committed to serving and supporting the island’s local residents and businesses, which it does by employing over 40 locals and sourcing ingredients from more than 25 Maui-based farmers and suppliers whenever possible. Fork & Salad is partnered with Fransmart, the industry-leading franchise development company behind the success of household concepts like The Halal Guys and Five Guys Burgers & Fries, as its exclusive franchising partner to grow the brand. For more information, visit www.forkandsaladmaui.com.
Fazoli’s Continues 2018 Development Momentum With New Openings and Successful Market Relaunches Fazoli’s, America’s largest elevated QSR Italian chain, announced a number of momentous achievements to close out the first half of the year. By mid-year, the company successfully opened over seven new restaurants, with plans to open up to an additional five locations by the end of the year - setting the brand up to achieve its highest number of openings in nearly 10 years. This continued surge in development has also helped the brand successfully reenter three markets where it previously operated, since the beginning of the year, including Columbus, GA, Plant City, FL and Poplar Bluff, MO. Fazoli’s was able to successfully return to these three markets after several years, by offering freshly prepared Italian fare at a reasonable cost and reestablishing itself as a leader in the elevated quick service Italian space. Strong brand loyalty and customer appeal have resulted in exceptional and sustained sales performance in each of these newly reopened markets. In addition to reestablishing a presence in these key cities, Fazoli’s achieved its two highest grand opening weeks in company history with its openings in Hazard, KY and
Columbus, GA, surpassing $100,000 and $95,000 in grand opening sales, respectively. Furthermore, Fazoli’s has continued its remodel initiative after successfully revamping nine of its locations in 2017 and observing sustained success in each of those restaurants. Fazoli’s is currently seeking single- and multi-unit operators to join its growing, franchise network. Incentives are also available for new franchisees looking to grow their portfolios with the brand. For more information, www.ownafazolis.com.
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what’s new! Jimboy’s Tacos Opens New Location in Nevada Jimboy’s Tacos, home of the parmesandusted Original American Taco, has opened its newest location in Lemmon Valley, Nevada at 310 Lemmon Drive. Franchisee Peter Francis first became involved with the Jimboy’s Tacos brand
when he was hired for a back-of-house position after high school, and has since worked his way up through the franchise and currently owns three additional Jimboy’s Tacos stores in Reno and Sparks, NV.
The 65 year old concept originally started as a simple food trailer on the shores of Kings Beach in Lake Tahoe, CA. With sights set on serving the best tasting taco on the market, founder Jim “Jimboy” Knudson created the Original Ground Beef Taco, which has remained the brand’s best-selling menu item since its conception in 1954. The iconic taco, which Food Network Star Guy Fieri has called a ‘guilty pleasure’ taco, is made fresh at each Jimboy’s Tacos location with seasoned ground beef, freshly shredded cheese, and lettuce in a crispy, stone-ground corn shell dusted with parmesan cheese - a Jimboy’s Tacos signature. Jimboy’s Tacos currently operates more than 40 locations in California and Nevada. The growing brand is actively seeking franchise partners to continue its West Coast growth and begin bringing Jimboy’s Tacos to the Sun Belt states. For more information about the brand and franchising opportunities, visit www.jimboystacos.com.
The Future of Dry Cleaning Comes to Concord, MA Lapels Dry Cleaning of Concord Opens at Former Zoots Location Lapels Dry Cleaning, an innovative, environmentally friendly dry-cleaning company headquartered in Hanover, Massachusetts, recently opened a full-service, environmentally friendly dry-cleaning store at 91 Thoreau Street in Concord, MA. The location had previously been a Zoots Dry Cleaning store. “We’re extremely excited to bring a sustainable, non-toxic way of dry cleaning clothes to even more people in the great community of Concord,” said Lan Nguyen, who also owns Lapels Dry Cleaning of North Andover and Lapels Dry Cleaning of Wilmington. “When we open our doors on July 26th, we will be one of the
only dry cleaners in the area utilizing a 100 percent environmentally non-toxic cleaning solution.” Lapels has pioneered its eco-friendly dry-cleaning experience over the past two decades. Part of that effort includes a partnership agreement with GreenEarth®, the dry-cleaning industry’s only non-toxic cleaning alternative, for its newer locations like Lapels Dry Cleaning of Concord. Using these kinds of solutions and the latest technology in equipment, Lapels is one of the few dry cleaners able to boast that there is no hazardous waste in their process. Lapels offers its customers Automatic
Lan Nguyen, owner of Lapels Dry Cleaning of Concord
Rewards earning them credit towards free dry cleaning for every dollar they spend, Loyalty Programs, a VIP Program which eliminates the need to wait in line, the use of a 24 Hour Drop Off Service and FREE Home Delivery to all its customers. For complete information on Lapels Dry Cleaning, please visit www.mylapels.com.
Pearle Vision Features Tennis Legend and Cultural Icon Billie Jean King in Latest Campaign Locali Expands Footprint To The East Coast With New Franchise Deal Florida-Based Viable Foods, LLC Plans to Bring ‘Healthy Convenience’ To The Greater South Beach/ Miami Area
Pearle Vision is capturing the hearts and minds of Americans with an emotionally-driven advertising campaign. “Olivia” casts an indelible light on the brand’s commitment to quality of care. The film tells the story of Olivia, a young girl exploring a myriad of interests ranging from sports to space. As her story unfolds it becomes clear to her mom and to the viewer that passionate Olivia isn’t seeing clearly. In the film, we see Olivia and her mom in the exam room at Pearle Vision. As it becomes clear that Olivia needs glasses, the Pearle Vision optometrist knows just how to help. She presents Olivia with a photo that elicits an immediate reaction of joy because the optometrist did more than diagnose Olivia’s visual acuity issue during the exam, she took the time to learn about Olivia’s unique interests (tennis, archery and space travel), all of which the young girl celebrates at home in her room with an inspiration board titled “Women Who Made History.” And that photo, we learn, is an iconic glasses-wearing heroine to add to her board — Billie Jean King, wearing a near identical pair of frames that Olivia now wears. Thanks to the genuine, personalized care from the optometrists at her neighborhood Pearle Vision, she proudly heads home wearing her “perfect pair” that we come to learn creates an even deeper connection to what and who inspires Olivia. For more information, visit www.PearleVision.com.
Locali, the wildly popular Los Angeles-based ‘healthy convenience’ concept, has recently signed a multi-unit franchise agreement with Viable Foods, LLC to expand the rapidly-growing brand into the greater South Beach/ Miami, Florida area. This deals marks the first expansion outside of California for Locali. Franchisee Roy Casiano, who operates Viable Foods, LLC with his wife Deanna Snyder, has been working in the food industry for over 13 years holding positions in operations and management. Most recently, Casiano acted as General Manager for Estiatorio Milos, a chain of high-end Mediterranean restaurants with locations in Miami and Las Vegas, among others. Since 2009, Locali has established itself as the largest and fastest growing health-conscious convenience concept in the market, and the only franchised natural food store with a healthy and organicbased deli menu. Offerings include made-to-order sandwiches, like the completely vegan “Badass Breakfast Sandwich,” which was named one of “LA’s 10 Best New Sandwiches” by Zagat, organic produce salads, chia bowls, probiotic smoothies, and other healthy options, many of which are vegan, vegetarian, and glutenfree. The ‘healthy convenience’ store also offers grab-and-go options and a wide array of curated food items available for retail purchase. Locali, in partnership with Fransmart, is looking for experienced, qualified franchise partners in the United States who are looking for an opportunity to become involved with the Locali brand, which yields great unit economics, small store footprint, low start up and food costs, and impressive margins. For information on franchising with Locali, visit www.localiyours.com
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Grow Organically When Phil Catron founded NaturaLawn in 1987, there was little interest in the company’s environmentally friendly approach to lawn care within the industry. Since then, perceptions towards natural, organic methods are much more favorable, and the company has experienced substantial growth. Since its inception, NaturaLawn of America has grown every year in gross
revenue and customer count. Even during challenging economic years, the company has seen continued growth - a testimony to their customer service and results, and a key reason that NaturaLawn is a superior franchise opportunity. “Lawns treated by chemicals and pesticides may look pretty on the outside, but are sick on the inside, because nothing is living in the soil,” Catron explains, “Our entire concept is built on building the foundation of the soil profile, where the plant roots support the top.” Instead of using harsh pesticides and chemical treatments on lawn surfaces, NaturaLawn’s patented approach focuses on preserving the lawn’s soil and using
natural pest prevention techniques. Catron goes on to explain, “When we first launched, the industry took a very negative approach toward us because we were against the norm.” NaturaLawn of America treats lawns using proprietary granular, organic-based fertilizers that are safer for children, pets, its employees and the environment. The company’s Integrated Pest Management (IPM) system involves preventing, monitoring and controlling pest activity. Before starting the company, Catron worked in training, product development and program development for two national lawn care companies. While at the first company, he began developing an organic
“Our customers are loyal to us not only because of the great results we deliver, but also because of the safer level of service we provide while focusing on building up the health of the soil.” - Blaine Young approach to lawn care that would have used biorational microbial materials to treat lawns. After Catron’s methods and ideas about reducing their unnecessary chemical impact were ignored by his first employer, he left the company to work for another lawn care provider and continued to research biologically beneficial materials. Unfortunately, this lawn care provider also did not embrace the concept of biologically beneficial materials. After gaining valuable industry insight from these companies, he subsequently left the second company in 1986 and started NaturaLawn of America the following year. “I decided that if this was something I was going to do, I would have to do it myself,” he says. “There were a lot of concerns from the general public about issues with chemical sensitivity,” he says. There were reports of clients’ pets and the employees of lawn care companies falling ill as a result of the chemicals being used to treat lawns. “I felt that we weren’t providing a service; we were just providing chemicals, whether they were needed or not.” Although NaturaLawn of America faced initial resistance within the industry, many of their peers have now come to embrace this more organic way of thinking. “The industry has truly tried to make that turn, but I compare it to an aircraft carrier trying to make a turn – it takes a very long time! NaturaLawn of America’s franchise system is more like a fleet of PT boats and is able to manoeuvre very quickly.” Catron continues, “No one likes to admit what
“Lawns treated by chemicals and pesticides may look pretty on the outside, but are sick on the inside, because nothing is living in the soil. Our entire concept is built on building the foundation of the soil profile, where the plant roots support the top.” - Phil Catron they were doing for 25 years is inherently wrong, but if you’re not willing to change and do what customers want, you will surely go out of business.”
A Turnkey System Today, NaturaLawn of America has 90 licensed franchises in 25 states, making it the nation’s leading organic-based lawn care franchise and the third-largest lawn care company in the industry. NaturaLawn’s 90 franchisees enjoy very high customer retention. “Our average customer stays with us for more than six years, and 85 percent of our customers continue with us every year,” says Franchise Development Manager Blaine Young. “When someone engages with you to purchase lawn care services, they want to see a healthy, green lawn that is as weed-free as possible. Our customers are loyal to us not only because of the great results we deliver, but also because of the safer level of service we provide while focusing on building up the health of the soil.”
The average NaturaLawn of America franchise reports more than $1.5 million in annual sales, and several of its locations range between $3 million and $8 million in sales. Each franchise is given an exclusive, protected territory of between 50,000 to 70,000 single-family homes, as well as the company’s patented and exclusive fertilizers. Franchise owners also benefit from advertising, marketing, accounting, purchasing, business management and other support services provided from NaturaLawn of America’s central office. A franchise support team visits new franchise locations an average of eight times a year for their first two years in business. Other franchisees also offer guidance and assistance during regular franchise meetings. “Our franchisees are given a turnkey business with processes, systems, and uniquely blended proprietary fertilizers which cannot be purchased anywhere else,” Young says. A NaturaLawn of America franchise
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Pictured left to right: Phil Catron, Founder; Theresa Smith, Vice-President Marketing; and Jesse Catron, Vice-President.
“Joining us is like being part of a family; we want to make sure our prospects are a good fit for our family and we are a good fit for their family.” - Blaine Young is like getting three opportunities for the price of one. While lawn care is the primary focus and service provided, additional opportunities to expand into mosquito services with Mosquito Ranger ® and flea and tick services with Tick Ranger® , are available in areas where needed. These three service lines allow NaturaLawn of America franchisees to receive lawn care, mosquito, and tick abatement equipment and solutions for using the federally trademarked services of NaturaLawn®, Mosquito Ranger®, and Tick Ranger®. “Once franchisees get lawn care up and running, they can offer the two additional services to existing customers or provide these services to new customers who may not be receiving lawn care from us,” Young says. “This gives NaturaLawn an exceptional point of differentiation for both customers and franchisees.
Smart Growth NaturaLawn of America’s revenues have increased 26 percent since 2014 and the company is targeting new franchisees on the East Coast as well as in the Midwest and the South. By design, three to four new franchises are added annually, enabling for steady and sustainable growth. “Although my position is focused on expanding the franchise system, we are not in business to simply award a franchise to just anyone who wants to write us a check,” Young says. “Joining us is like being part of a family; we want to make sure our prospects are a good fit for our family and we are a good fit for their family.” NaturaLawn of America is particularly interested in growing from within through its ownership incentive program, offered to all full-time franchise and home office
employees. Employees can receive a $5,000 discount toward the company’s $29,500 franchise fee for each year they remain with the company, up to four years of employment or a total $20,000 discount. Employees interested in the incentive go through NaturaLawn’s Internal Management Training Program which prepares them for owning their own franchise. “The incentive helps franchisees attract career-minded people and assists the Home Office in growing the franchise system from within,” Catron says. One potential future franchisee is Blaine Young himself, who joined NaturaLawn of America three-and-a-half years ago. “Being a person that has owned several different businesses, I saw an amazing opportunity,” he says. “I believe and am passionate in what NaturaLawn of America has to offer.” NaturaLawn of America not only provides superior products and services to its customers, it also offers a trusted, successful and supportive opportunity for franchisees. naturalawnfranchise.com
Own your own sandwich shop.
Franchise opportunities are now available locally and worldwide with new and existing shops. If you enjoy working with people, leading your own team, learning new skills and are ready for an exciting new challenge, contact us today! The Subway® franchise fee is $15,000 which is included in the total investment. The total investment can range from $147,050 to $320,700+ (See Franchise Disclosure Document for further details.) Restaurant owners should have half of the total investment in cash and finance the other half. Please visit subway.com or call Ralph Piselli, Franchise Sales Manager: 800.888.4848 x 1312 .
SUBWAY® is a Registered Trademark of Subway IP Inc. ©2018 Subway IP Inc.
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Charles Bonfiglio, Founder and Chief Executive Officer, Tint World ® LLC
I was a Franchisee, Now I’m a Better Franchisor: How Franchisee Experience Adds Important Perspective to Franchisor Role
“As a former franchisee, I shy away from a sink-or-swim mentality. To ensure franchise growth, a company has to stay ahead of trends and offer the latest in-demand products and services.”
To understand the challenges franchisees face, you have to walk a mile in their moccasins. Or better yet, walk many miles over many years. I entered the automotive franchise arena in the 1980s when I was in my early 20s. I eventually operated eight stores and became the company’s top franchisee. I was grateful for the opportunity and earned a good living and then some, but I wanted to strike out on my own. I knew I could do things better.
During my time as a franchisee, I served on numerous franchisor-level ad, marketing, and vendor committees. I learned about both sides of the process. It helped me gain perspective on what is expected of franchisors. That includes vendor contracts, leveraging buying power, training and marketing. Here’s a sampling of what I learned as a franchisee and how I apply those lessons as a franchisor.
Marketing support and transparency People don’t go into the franchise business to learn marketing. Long gone are the days of putting an ad in the Yellow Pages and a couple of magazines and calling it a day. Now there are social media platforms to consider, as well as digital marketing concepts like search-engine optimization and organic growth. It’s the responsibility of a franchisor to have an adequate marketing fund at the brand level and execute it expertly. You want your franchisees to focus on their customers
instead of chasing marketing techniques and tactics. It’s important, however, to allow some leeway and accept feedback from the local level. A franchise advisory council can help franchisors understand marketing and product needs at the local level. Former franchisees understand the importance of this. A company can’t just do a blanket national campaign. Feedback from the local level is crucial because franchisees understand their community. Digital marketing allows for localized campaigns. This is integral to growing a brand. Individual stores should see leads and conversions, of course, but the marketing goal is to drive traffic into local stores. Transparency is important, too, so franchisees should have access to ROI numbers and analytics in real time as opposed to an annual summary.
Buying power and buy-in As a franchisor, I build on my experience
to fill gaps and add value in areas that are appreciated by franchisees. This includes support with compliance issues and disclosure documents, but most importantly, buying power. As a franchise starts to scale up, it attains significantly more buying power. When I was a franchisee, I felt the buying power fell short. I had to use local store value to negotiate better prices, rather than across the brand. My franchise is intensely focused on national and international buying power, leveraging value of the entire company rather than individual franchises. And the good prices and local marketing efforts keeps our franchisees loyal with our vendors. This perpetuates buy-in, not because we are telling our franchisees to do so but because they see the value.
Five stars and trends We maintain a strict focus on samestore sales growth. We want them to get profitable as quickly as possible. Toward this end, we’ve a launched new five-star program that allows us to grade store performance on a variety of factors,
“My experience as a franchisee gives me a special perspective on building success, and that includes the use of great systems, trust, communication and teamwork.” including customer service, products, services, operations and financials. We then benchmark the results against the rest of the team. This proactive approach means the operations team can step in and provide support in certain areas before a store enters a spiral that can be difficult to reverse. On its face, franchisor to franchisee support is a simplistic thought process: What do we need to achieve for each location to grow and be as successful as they can? We point out negatives, of course, and identify areas where franchisees might need additional training. But we cross-pollinate the positives by directing franchisees to stores that are excelling in areas where they may be deficient. As a former franchisee, I shy away from a sink-or-swim mentality. To ensure franchise growth, a company has to stay ahead of trends and offer the latest in-demand products and services. A franchisee cannot be expected to put too much time into this, he or she is trying
to run a profitable business. We are incorporating a robust online purchasing feature across the company, for instance, and are stocking and planning for inventory related to the growth in the semi-autonomous vehicle space. We are also promoting energy efficiencies as carbon-neutral products grow in demand. As mentioned above, our goal is simple: To help our franchisees succeed. My experience as a franchisee gives me a special perspective on building success, and that includes the use of great systems, trust, communication and teamwork. Remember: If franchisees are successful, the entire company will be successful. Charles J. Bonfiglio is the founder and chief executive officer of Tint World® LLC, a privately owned franchise chain of independent retail window tinting, mobile electronics, auto accessories and appearance centers. He can be reached at email@example.com. www.tintworld.com
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Capitalizes on Changing Consumer Trends Americans are looking for ways to manage pain so they can stay active. This was the takeaway from a series of consumer focus groups and a market research study conducted by Grand View Research. HealthSource, America’s leading franchise group of holistic health clinics offering massage, orthotics, progressive rehab, nutritional supplements and spinal manipulation, used the insight to form a new brand strategy and launch a national brand campaign. The message to consumers: Do What You Love. This message is a major departure from typical
rehabilitation service providers that focus on the consumer’s pain instead of passions. Based on the number of new visits to HealthSource clinics after the launch of the campaign, the message is on point. In July, the network of clinics experienced a 39 percent increase in new customers, the largest jump since HealthSource was founded in 2006. Revenue was up 8 percent, and the quarter is tracking for double-digit growth. The integrated brand campaign developed by HealthSource features cyclists, tennis players, runners, walkers and others in their daily exercise routines. Advertising elements include radio and television spots, digital pre-roll, digital display ads, out-of-home billboards, direct mail, print and exterior window graphics. Co-op funding is covering the cost of broadcast advertising, while all other elements are being paid by a national media buy.
Kieran McCauley, vice president of marketing at HealthSource, believes the campaign message strikes an emotional connection with consumers. “We’ve essentially flipped the focus to active living from pain management,” said McCauley. “People don’t need to be reminded that they have pain, they need to remember what makes them happy, and this campaign shows them how to get into a routine to address and prevent pain – using stretching, massage, progressive rehab, nutritional supplements and spinal manipulation.” Plans are in place to evolve the campaign to highlight different passions every quarter throughout 2018 and 2019. HealthSource is also refreshing clinic exteriors with graphics of gymnasts, golfers, runners and other athletes doing what they love. Another aspect of the campaign is
showcasing natural and holistic ways of treating pain. This is important to many Americans who are increasingly more skeptical of traditional medical approaches as a result of the opioid crisis. Millennials in particular are leery of taking prescriptions, and prefer holistic and homeopathic treatments versus surgery and medications to address chronic pain. In 2017, Grand View Research, a U.S. based market research and consulting company, conducted a study on consumer preferences and adoption rates for a variety of alternative treatments to address chronic pain. The consumer insight was combined with sales data of the Alternative & Complementary Medicine Market. Using this two-tiered approach, the researchers determined that more and more consumers are switching to natural treatments. The study found that Complementary and Alternative Medicines (CAM), which include chiropractic, massage, progressive rehabilitation, acupuncture, yoga, magnetic intervention and nutritional supplements are collectively growing 17 percent annually. And by 2025, they are expected to reach $60.9 billion. These alternative health treatments are tracked by the National Center for Complementary and Integrative Health (NCCIH), which follows scientific research and consumer adoption on the diverse medical and health care systems, practices, and products that are not generally considered part of conventional medicine. “Millennials as a group are less likely to go to a medical doctor to address back or neck pain,” said McCauley. “Their focus is on life balance – ensuring that they eat right, exercise right, and reserve the right amount of time in the day to decompress. Instead of surgery or taking pain medicine, they are opting for stretching, massage, yoga and chiropractic adjustments.” This matches up with a National Public Radio survey that found 64% of millennials chose to address back pain through natural or alternative treatments. Entrepreneurs and businesses trying to meet the consumers demand for holistic health solutions are realizing success in the service sector. Health clinics are the fastest growing businesses in this segment,
“Today, consumers want a clinic that can provide a wide range of services with a health professional who can serve as a trusted and reliable wellness coach. Having multiple wellness options and services all in one location just fits with their busy lifestyles.” - Jason Pride and include such services as massage, medical spa treatment, rehabilitation, chiropractic, acupuncture, orthotics, yoga and wellness programs, as well as weight and fitness centers. These types of businesses are expanding in all regions of the country. While much of this business segment is fragmented and defined by many small players, national brands and franchises are achieving strong market share growth. HealthSource is a leader in the holistic category with nearly 300 clinics in the United States. The concept requires a low initial investment and generates high margins. Jason Pride, one of HealthSource’s newest franchisees, is opening his clinic this
month just outside of St. Louis in Ballwin, MO. As a CPA, he studied the numbers and decided to invest in the holistic health trend. “Being able to help people reach their health goals and do what they love is extremely rewarding, and the growth potential is very solid,” said Pride. “Holistic healthcare, like every industry, continues to evolve. Today, consumers want a clinic that can provide a wide range of services with a health professional who can serve as a trusted and reliable wellness coach. Having multiple wellness options and services all in one location just fits with their busy lifestyles.” Learn more about the forecasted growth of holistic healthcare and HealthSource at hsfranchising.com.
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Jeff Oddo, President, City Wide Maintenance
3 Ways the Philosophy of Servant Leadership Can Positively Impact Your Franchise The concept of servant leadership is founded on the simple notion of helping and serving others to meet their personal needs. This focus on internal and external relationships garners trust and employee loyalty, as well as positive consumer sentiment. Franchising USA
Our company values guide every employee, franchisee, and customer interaction, and servant leadership is one of our values and is essential to maintaining these relationships. Here are three reasons you should live by the servant leadership philosophy to lead your franchisees and employees toward greater goals.
1 Franchisee and Employee Satisfaction Employees at all levels should be treated with respect and made to feel significant and impactful, starting from the top down. Servant leadership begins with creating empowerment from within each
role in your business, acknowledging the employees as people and learning their individual culture and life outside of work. Studies have shown that 27 percent of employees at companies that don’t have a significant work-life balance will resign from their position within two years. Without recognizing the need for worklife balance, you may see higher turnover rates. Helping franchisees balance their personal lives and their work lives is one way to increase overall productivity and loyalty. This notion of balance, which seems simple in practice, is one of the most difficult to master as a business owner and leader. Though it’s rare to achieve it, it’s
“When we empower employees at all levels to take on leadership roles, we demonstrate the importance of treating team members with the respect they deserve.” important to never stop trying. This elusive balance is all about focusing on what is most important to yourself and those around you. As a leader, it is incumbent to identify priorities of your employees, then schedule those priorities on a calendar to accommodate to their personal needs. Allow a little leeway for their personal life — if they want to take a week off to travel to Spain, don’t make them feel guilty. Instead, help them adjust their schedules and wish them a fun and safe trip. It’s the small gestures like these that are noticed.
2 Better Corporate Culture As the leader of a business, the importance of creating a cohesive and positive corporate culture can’t be overstated. Leading by example is the way to achieve this, and also fosters a climate of influence that develops future leaders. When we empower employees at all levels to take on leadership roles, we demonstrate the importance of treating team members with the respect they deserve. Franchisors can enhance corporate culture by scheduling time to spend with employees as a group doing non-work-related activities. Plan team philanthropy events, luncheons, and get-togethers to get to know them as individuals and find common ground on a personal level. To demonstrate my commitment to these ideals, I asked every member of my leadership team to read the book “Everybody Matters: The Extraordinary Power of Caring for your People Like Family” by Bob Chapman and Raj Sisodia. The book acknowledges that 99 percent of organizations say their people matter, but questions whether or not most of those companies actually make decisions that consider their employees’ needs. This is a guiding principal that sets us apart.
3 Open Communication Critical to the implementation of servant leadership is holding ourselves accountable and expressing concerns as they arise. Have certain expectations of your employees, as they should have certain expectations of you. You should encourage your team to speak up if they notice your core values falling by the wayside. At City Wide, we encourage a culture of openness when it comes to voicing concerns. Feedback is welcomed, and the collection of everyone’s ideas, opinions, and concerns creates an overall positive environment. To make sure their value to the team is noted, reward your franchisees with recognition of their hard work. While running a franchise, it is easy for franchisors to lose track and sight of open communication amongst franchisees and employees. Having open communication systems in place in an organization is key. To ensure everyone feels invested and heard, encourage employees to come to you with ideas and concerns by scheduling weekly or monthly meetings and peer groups to give them a safe and positive forum to do so. At the end of the day, it is our duty as leaders and people to treat our teams with respect. Phrases such as “What goes around comes around” and “Do unto
others as you would have them do unto you” are true in that they directly apply to your success as a company or business. Positivity is a ripple effect, and as I mentioned previously, starts from the top down. You help yourself by helping others. In the words of motivational speaker Zig Ziglar, “You will get all you want in life if you help enough other people get what they want.” Jeff Oddo is the president of City Wide Maintenance, a sales and management company in the building maintenance industry with more than 50 franchise locations across the United States. www.citywidefranchise.com
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