Trending Franchises Franchise Feature

FranchisingFeature trending franchises

ju ne 2019

Scooter’s Coffee: Riding the Strong Trend in Coffee Concepts

Setting the Trend in Franchising Franchising Reinvented:

The Latest Trends Rocking the World of Franchising

fe at ure : t r en di ng fr a nch ises

what’s new!

Tropical Smoothie Cafe® Opens 750th Location

Blo Blow Dry Bar Achieves Significant Growth and Success in the First Quarter of 2019 Blo Blow Dry Bar, the original blow dry bar and the world’s largest blow dry bar franchise, announced that its successful development efforts throughout the first quarter have accelerated the brand’s growth, opening 11 new locations and signing new franchise agreements that will further expand Blo’s presence nationwide. This surge in franchise development has fueled Blo Blow Dry Bar’s ongoing success, achieving 15 consecutive months of positive year-over-year same-store sales growth.

“Blo brings an affordable luxury to the communities we’re in and with a demand for the services and experience we provide, we’re accelerating development in new and existing markets. We’re eager to build on this momentum to make our catwalk-quality blow outs accessible to women worldwide,” said Vanessa Yakobson, CEO of Blo Blow Dry Bar. Blo has grown its northern footprint with the addition of two new bars in Manhattan, as well as new openings in Northern Baltimore, West Orange and Franklin Lakes, New Jersey and two new locations in the brand’s hometown of Toronto. Atlanta welcomed a new bar in East Cobb, which marked the third of six locations slated to open in the greater Atlanta area this year. Additionally, Blo opened new bars in Denver and Chicago and also introduced its “no cuts, no color” concept to Iowa with the state’s first location in the Quad Cities. The company is further driving its franchise development with the signing of three franchise agreements bringing new locations to markets including Chicago, South Florida and the Philadelphia metro area.

For more information, visit blomedry.com.

Franchising USA

Tropical Smoothie Cafe, LLC, a leading national fast-casual cafe concept known for its better-for-you smoothies and food with a tropical twist, celebrated a milestone achievement with the opening of its 750th location in the system on May 17th in Sugar Land, TX at 13445 University Blvd.

This major landmark opening showcases Tropical Smoothie Cafe’s rapid growth and sets the company one step closer to reaching its goal of opening 130 new cafes in 2019.

“We continue to experience tremendous growth year after year and look forward to building on this momentum to propel our aggressive expansion efforts in target markets across the state of Texas and beyond, with the goal of having 1,500 cafes open nationwide by 2025,” said Charles Watson, CEO of Tropical Smoothie Cafe, LLC. Currently, 50 franchised Tropical Smoothie Cafe locations operate across the state of Texas, with nine cafes open in the Houston area, and another four expected to open in the market before the end of 2019.

With 750 locations open nationwide, the company is looking to add qualified franchisees to its growing brand and currently has franchise opportunities throughout the U.S. For more information about opening your own Tropical Smoothie Cafe franchise, please visit www.tropicalsmoothiefranchise.com.

Seva Beauty® Continues Expansion Seva Beauty® announced that they are expanding their locations. The beauty company will open a new Studio at 16041 Tampa Palms Blvd.

W, Tampa, FL 33647. The owner of this new location is Dharati Patel, a businesswoman who has managed different companies and will now own a Seva Beauty® Studio for the first time.

Seva Beauty® offers the flexibility to operate in a variety of venues such as shopping malls, premium outlets, and more. This Studio will open in a strip mall location, providing Seva Beauty® customers with a new convenient destination.

“I would definitely recommend Seva Beauty® to others. The support and guidance that this company provides to their Franchisees from the beginning to the opening of the Studio are great”, said Patel.

The opening date of this new Seva Beauty Studio will be announced soon.

Seva Beauty is the pioneer of the “Fast®

Casual Spa” offering services such as Brow Shaping, Lash Extensions, Brow Tinting, Facials, and Makeup. Most services can be performed in 15 minutes or less. Seva Beauty® currently operates in 28 States and Puerto Rico with plans to continue growing both nationally and internationally. Today, Franchisees from coast to coast can join a company that

has a proven track record, a reputation of being core value driven and a mission of bringing Beauty to the People®.

Ranked in Entrepreneur Magazine’s Top 100 Fastest Growing, Top 25 New, and Top 500 Franchise categories.

For more information visit www.sevabeautyfranchise.com.

Camp Bow Wow Strengthens Position as Leader in Pet Care Industry with 2018 Business Successes & 2019 Growth Forecasting Camp Bow Wow®, the largest and leading doggy day care and boarding franchise, announced 2018 to be one of its strongest years of growth and innovation in company history upon the release of the Franchise Disclosure Document.

With a 12% increase year-over-year in system-wide gross revenue , the 125+ million-dollar brand opened 20 new locations in 2018 and closed the year with a grand total of 165 Camps. Kicking off 2019 on a high note, Camp Bow Wow has been recognized for the fourth consecutive year as #1 in the Pet Services category in Entrepreneur magazine’s Franchise 500®, the world’s first, best and most comprehensive franchise ranking.

“At the core of Camp Bow Wow’s significant growth in 2018 is the strong partnership between our corporate support team and franchise owners that allows us to reach new milestones together,” said Camp Bow Wow President, Cail Morrison.

A further testament to the brand’s achievements, Camp Bow Wow received the Gold Stevie® Award in “Marketing Campaign of

the Year” for the company’s dynamic #GiveAFetch campaign that aimed to promote being a responsible pet parent while celebrating the special things dog owners do for their pets. As a result of the 2018 initiative, the company donated $40,000 to shelters and rescues across the country.

With Camps in 42 states and Canada, and continuing to expand nationwide, Camp Bow Wow touts 32% of their system as multiunit owners who have invested in multiple franchised locations.

For more information, please visit campbowwow.com.

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 23

fe at ure : t r en di ng fr a nch ises

Cover Story: Scooter’s Coffee

Scooter’s Coffee: Riding the Strong Trend in Coffee Concepts Scooter’s Coffee occupies a prosperous intersection of the franchising business these days. They are riding the strong trend in coffee concepts with a preference for going to market with multi-unit franchise partners who may own multiple brands.

The results have been explosive, with a robust number of store openings, record annual unit volume and same-store sales growth that is far outpacing the QSR industry average. Plans to field Scooter’s Coffee brand in consumer packaged goods this year are expected to add to the momentum.

Coffee franchises are hot. More than 80 percent of Americans drink coffee daily, providing a huge pool of existing and potential customers for Scooter’s Coffee and its competitors. U.S. coffeehouse sales are expected to reach $28.7 billion by 2021 despite increased competition from ready-to-drink coffee, according to Mintel, a leading research house. That would be up from sales of $23.4 billion in 2017 — which in turn represented a 41 percent increase from sales in 2011.

What’s more, drive through coffee kiosks — a major point of emphasis for Scooter’s Coffee — are an especially popular type

Franchising USA

of outlet for increasingly time-strapped consumers. And kiosks have the benefit of being easier and much less expensive to locate and build than full-service coffeehouses.

Scooter’s Coffee adds its own franchising distinctives to the overall promise of coffee. Based in Omaha and operating 215 stores in 14 states now, the brand plans to open an additional 65 stores in 2019 and is structuring and resourcing the company to grow to 1,000 stores by the end of 2023.

Scooter’s emphasizes customer satisfaction with a loyalty application that already has surpassed 37,000 users and accounts for about 10 percent of transactions. It focuses on franchisee satisfaction with a strong system that provides a structured training course, strict product-quality controls, top-level marketing and communications, an embracing system-wide culture and ongoing operational support.

Scooter’s management, led by CEO Todd Graeve, also has accelerated growth by emphasizing franchise partnership with entrepreneurs who want to own multiple Scooter’s Coffee stores as well as those who already have been successful with other brands that are complementary to Scooter’s. Multi-unit operators are taking over the franchise business from the old model of single-unit owners who are content to “buy a job” and be their own bosses. Today, more than half of all franchise units in the United States are run by multi-unit operators.

Multi-brand franchisees also are a rising trend. Often, they have expanded their number of stores to the maximum for their territory and want to take on a second or third brand to continue to grow their enterprise. Other motives include seeking additional brands to provide cash flow for different dayparts or to hedge against changes in markets, consumer tastes and economic shifts.

“Right away we liked the fact that Scooter’s already was in our market, so the brand was already here.” - Carissa Votroubek

“There’s that small-business feel that we so appreciate. And more important than that, we think that’s something Scooter’s Coffee will continue to focus on as they grow.” - Carissa Votroubek

All of those considerations played in the minds of Carissa and Brent Votroubek a couple of years ago as they pondered strategies for expanding from multi-unit operators of Jimmy John’s franchises to multi-brand franchisees. The couple in Cedar Rapids, Iowa, were already part of a family enterprise that owned a handful of outlets for the Champagne, Illinois-based sandwich brand. Brent Votroubek also worked in commercial and residential real estate development; and his wife, Carissa Votroubek, was a telecommunications equipment leasing consultant.

especially good to the Votroubeks. They were seeking a partnership with a brand that was relatively new and on the rise, and that emphasized the human touch, personal relationships with franchisees and the passion for shared success.

“Scooter’s Coffee had just opened up in Cedar Rapids, and like a typical female, I said that owning a coffee shop would be kind of cool,” Carissa Votroubek recalls. “Right away we liked the fact that Scooter’s already was in our market, so the brand was already here.”

Carissa, who is 32, and Brent, who is 34, embraced other aspects of the Scooter’s Coffee proposition and personality.

She liked the brand’s emphasis on the sustainability aspects of coffee harvesting and “the fact that Scooter’s has a very philanthropic side,” Carissa says.

After researching not only Scooter’s but also a number of other national coffee chains, including Caribou, Dunn Bros. and Dunkin’, Scooter’s Coffee looked

Already involved with their extended family in a Jimmy John’s enterprise that had grown to five local outlets, the Votroubeks committed to a four-

“When we went to their ‘discovery day,’ we really felt like everyone there cared about us,” Votroubek recalls. “They seemed passionate about the business itself.”

store territory in Cedar Rapids with Scooter’s Coffee. Their positivity about Scooter’s was reaffirmed during the ramp-up process, Votroubek says. Brand management kept its promises and demonstrated a flexibility that helped the couple complete construction and trim costs on the first two Scooter’s Coffee outlets.

Now, the Votroubeks are looking forward to opening the other two Scooter’s Coffee locations in Cedar Rapids and to succeeding and growing along with the brand.

“There’s that small-business feel that we so appreciate,” Votroubek says. “And more important than that, we think that’s something Scooter’s Coffee will continue to focus on as they grow. That’s a piece we don’t want to lose.” franchising.scooterscoffee.com

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 25

fe at ure : t r en di ng fr a nch ises

Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

franchises feature The most compelling part of the franchising industry is that it’s always developing, growing and finding new and innovative ways to make a successful and profitable business.

Trending Franchises of 2019

As consumers needs change and expand,

Consumers are hooked on the idea of paying for time and investing in convenience. A service that provides freedom and time to be with their families is considered money well spent.

so does the economy and therefore

franchises. Trends start to falter and new fads create business opportunities that

could be the next new thing that everyone

needs or wants. There are constant ongoing opportunities to consider and review for investment.

Franchising USA

A trend for convenience and time The economy used to be forced and guided by a human need for materialistic products.

Americans took pride in ownership and enjoyed having the best new gadget. While that necessity has never faltered, there is a new driving force behind businesses that has changed the course of business.

This has created a trend in related franchises, particularly in Cleaning Services. A working family barely has

time to keep up with the demands of a busy household. Cleaning services used to be a trend only available to the luxury class because it wasn’t worth the money for everyone else. Now people budget their income to provide for such a service so they can use their free time to be with family and enjoy the things they love.

The cleaning industry is not simply household chores; there are speciality services including window cleaning and dry cleaning, residential cleaning as mentioned above, and commercial businesses - which all have franchising options. There are a variety of options to consider that are profitable within the franchising field. It’s currently a $78 billion industry when you consider all the options available.

Though this field of interest is easily accessible because it has a lower start

“Cleaning services used to be a trend only available to the luxury class because it wasn’t worth the money for everyone else. Now people budget their income to provide for such a service so they can use their free time to be with family and enjoy the things they love.”

Educational development is a newer trend with a wider variety of options in franchising. Parents are more likely to invest in their children’s futures and schooling than ever before. Most parents want their kids to have opportunities that they hadn’t as a child and therefore willing to prioritize money to have a better education - as well as knowledge in other categories outside of the school yard. up cost, there are some drawbacks. The business is very dependent on its workers and reputation. With strong competition, there is always another option down the street or a cheaper option accessed through social media or service apps. Therefore, a franchisor might want to review cleaning standards, talent and HR management and possible turnover. A cleaning franchise with a reliable operations plan, as well as a successful rate for long term employees and management could be more successful and dependable.

Games and Education A powerful consumer market that is a newer consideration is children. Kids have incredible buying power even though they have no income. According to a survey developed by the Department of Agriculture conducted between 2005 to 2006, the average working family spends close to $9000 per child until the age of 18.

For a total of $169,080, which has raised to $233,610 for a child 0-17 years of age in 2018.

The most common opportunity is supplemental education in the form of tutoring. Some of these franchises have a fixed location with tutorers reporting to work during certain hours, while other options allow franchisees to work from home and contract out tutors to customers.

These options have different start up costs, responsibilities and expectations. A large corporation with a steady group of workers has a higher investment fee, but an at home business may cut into more family and personal time with bigger responsibilities and operational considerations.

While a portion of the Department of Agricultural survey mentioned above considers educational costs, it did not cover entertainment, recreational or sports costs; something a lot of American families consider a priority or at least worthy of investment.

More than 60 percent of American families spend $1,200 to $6,000 per child annually on youth sports; 20 percent of families shell out $12,000 annually per child, according to an article published by the Chicago Tribute in 2018.

“Dance schools and sports camps are trends that have created profitable opportunities for children that is open to all kids, whether or not they have the skill or passion in a sport.”

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 27

fe at ure : t r en di ng fr a nch ises

Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

“Birthdays are no longer blown up balloons and freeze dance, but rather a huge business opportunity.”

Recreational and sport franchises are on the rise as the demands of parents and children are ever developing. These are great options for those who want to work with kids and run a successful business.

A franchise for everyone The franchising industry has opened its doors to more investors, as opportunities develop and consumers expect more choice but want to spend less money, and now the variety of franchises is endless.

This number is associated with the development in new franchises and trending sports and entertainment businesses. While there is pressure for some American families to invest in sports development in hopes that it will create prosperous and wealthy career for their kids, there are franchises focusing on everyday sports, as well as short term celebrations or recreational fun as well.

There are franchises directed towards the development of a certain sport: swimming, baseball, tennis or what have you. These franchises are for kids starting out in a new sport and learning basic skills. Dance schools and sports camps are trends that have created profitable opportunities for children that is open to all kids, whether or not they have the skill or passion in a sport.

“Dependent on a franchisee’s own personal passion, one could look at and invest in a business that truly speaks to their own sport interest or their desire to work with kids.”

Dependent on a franchisee’s own personal passion, one could look at and invest in a business that truly speaks to their own sport interest or their desire to work with kids.

A recreational franchise is also a trending consideration for 2019, with parents now looking at new ways to keep their kids busy and entertained when they are apart from them.

Recreational franchises include birthday party celebrations franchises. Birthdays are no longer blown up balloons and freeze dance, but rather a huge business opportunity. There is a growing number of mobile franchises have different entertainment packages that can bring the party to you, like gaming trailers or blow up castles.

The mobile recreational entertainment franchise has a lower start up fee, but there are stabilized franchises that are open to the public every day and offer birthday party venues: trampoline and indoor jungle gyms, arcade and restaurant opportunities are a few examples.

A trending type of franchise is one within the everyday person’s price range and these include mobile franchises. Without a large location to secure, franchisees work from their home and service people sight on scene.

Mobile businesses are accessible to a lot of people who are interested in franchises and have a lot of options dependent on your passion. Though the work and responsibilities may be a little different than most franchises, it a franchise that is always developing and peaking interest.

Franchising today offers a bigger world of opportunity than ever before and is constantly developing. Even a trending franchise can grow into new developments that are more popular that it was initially expected.

Either way, all business is developed and determined by the wants and needs of consumers and nowadays busy families want convenience at a lower costs which has been the driving force behind the more popular and trending franchises of today.

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.

Franchising USA

NOBODY GETS TO THE TOP BY ACCIDENT!

Page 29

We advise many of the top franchise owners in the world. You can get acces to the very same resources that build their empires at no cost!

Contact George Knauf to Start Building Your Empire TODAY! www.MyPerfectFranchise.com Franchising USA

fe at ure : t r en di ng fr a nch ises

Snapshot: Fresh Coat

Changing The Narrative: How Fresh Coat Has Solidified its Reputation as The Trusted Painting Franchise

It doesn’t require years of experience to know just how tainted and fragmented the painting industry is.

Everyday, painters show up hours late, call it a day early, and leave jobs halffinished… sometimes never finishing them at all. Unfortunately for customers, both commercial and residential painting too often lacks accountability, reliability, affordability, and yet the quality is still hit or miss. Steve Kwon, SVP of Franchising tells a story; “I called four painters. Two didn’t show up. One showed up an hour and a half late. And one wrote a quote on the back of a speeding ticket. It felt good knowing that our Fresh Coat owners are so much better than that.” Ask anyone about their experiences with the painting industry, and they’re sure to share a similar story. The Fresh Coat Franchise- recently named to Entrepreneur’s Franchise 500 and

Franchising USA

Franchise Gator’s Top 100 Franchises for 2018- has capitalized on the stigma within the painting industry by simply committing to do the very thing its competitors have failed to do; putting the customer first.

According to Brian Santos, Fresh Coat’s Director of Education; “It’s about the people. We give [our franchisees] a proven system in which they can support their family and effectively scale their business.” Fresh Coat, from the top down, has dedicated itself to quality and to the customer. ‘Quality’ and ‘Accountability’ aren’t just buzz words; they are the foundation of the brand itself. While Fresh Coat offers countless perks to franchisees, including EPIC™ Proprietary Quoting Software, National Partnerships (the likes of Sherwin Williams), Easy Pay™ (0% same as cash financing), and a VIP Realtor Referral Program, what they really pride themselves on is not their technological edge, nor is it their marketing support, but rather the quality of work they provide and the trusted household name they have cultivated nationwide.

“It’s about the people. We give [our franchisees] a proven system in which they can support their family and effectively scale their business.” - Brian Santos With industry-leading profit margins,

a $140 Billion market demand, and no

inventory required, prospective franchisees are increasingly being drawn to the

financial opportunity of owning a Fresh

Coat. But its not just the money that makes the difference, it’s the desire to join a

trusted brand in an untrustworthy industry and the opportunity to be an asset to the community, that has driven painters and non-painters alike to launch their own Fresh Coat Business.

For more information on starting your own Fresh Coat Franchise, visit: www.FreshCoatFranchise.com/trust.

Page 31

ALL ROADS LEAD TO

Sept. 13-14, 2019 • Donald E. Stephens Convention Center Meet face-to-face with 125 proven franchise opportunities and take the next step toward business ownership with one-on-one meetings and educational seminars presented by the foremost experts in franchising.

Visit FranchiseExpoChicago.com for more information.

SPONSORED BY

Franchising USA

fe at ure : t r en di ng fr a nch ises

Expert Advice: Sarah Kulbatski | COO | JT Franchising

Franchising Reinvented: The Latest Trends Rocking the World of Franchising

In its earlier years, franchising was a place for single unit owners, who were happy to be their “own boss”, “buy a job” and provide a modest income for themselves and their families.

Franchisors faced significant and unique challenges. They most importantly fulfilled the traditional corporate leadership role, ensuring their company delivered on its promise to its customers, behaved in

Franchising USA

a responsible way and earned profits.

However, they also played the franchisor role, which required them to coordinate the ambitions of their franchisees, people who are franchise leaders in their own right.

Social and economic changes, mean that the best franchise systems must be adaptable in the way they do business.

In the digital age, franchise businesses have to stay on top of new developments, new franchise tech, changes in consumer behavior and latest management techniques, to “shine up” their operations and stand out in a sea of competition.

As well, as a franchise system grows and develops, changes will be needed to maintain adequate levels of support to its franchisees.

We are halfway through 2019, and so far it has been a busy year for the franchising industry. We have seen new startups enter the franchising sector and others lose traction. So, what are the latest trends rocking the world of franchising?

1

More than half of all franchise units in the United States, are run by multiunit operators, some with hundreds of units and revenues in the tens of millions.

These operators don’t work in their stores, or travel from home to home to provide services. Rather, they manage their company, employing a professional staff of field and unit managers, while they focus on strategy and growth.

2

Multi-brand franchisees (those with two or more brands) are also a rising

trend. These franchisees have often maxed out their territory, with their first brand and must now take on a second or third brand, to continue to grow their organization.

Others are seeking additional brands to provide cash flow for different day parts, or to diversify their risk, by creating a hedge against market cycles, changing consumer tastes and shifts in the economy.

3

More and more franchises are eyeing overseas markets as means for expansion. In recent years, an increased number of US franchises have gone global, thanks to a recovering economy and the intervention of the FTC. Even franchises that already have an international presence, are opening more locations in more countries.

4

“In the digital age, franchise businesses have to stay on top of new developments, new franchise tech, changes in consumer behavior and latest management techniques, to “shine up” their operations and stand out in a sea of competition.”

7

The most successful franchise brands reveal a love of consumables. We love our food! Edible consumables are growing in a recovering economy, as consumer purchases of bigger ticket items are delayed or scaled down in budget conscious households. Innovations in food concepts are also reasons why consumers are responding in a positive way, to the increased variety and creativity in all things food.

A smart trend gaining popularity, is providing customers with add ons that supplement a franchise’s core business.

These may include supplementary services/ goods, that engage changing demographics in order to attract a new customer base.

This ranges from concept development for current or predicted future needs within your market, vertical integration within your supply chain, or cross promotional initiatives to foster brand awareness.

Franchises, in order to gain a competitive edge, are embracing new technology as a means of operating responsively and quickly to their customers. Mobile pay and apps are the strongest customer facing technology being deployed, with increasing uptake by consumers. Incorporating Apple or Android pay, is also an emerging trend. Franchises are investing in their online profiles, with the ability to access resources and materials 24/7. As a result, this investment enhances the experience of their customers and increases brand awareness.

Staffing in the franchise sector is also moving forward to meet the demands of a 21st century workforce by assisting in building the brand from the inside out.

Evolving a franchise’s internal hiring processes, in response to the changing workplace demographics of Millennials and Gen-Z employees, is a must. Next generation staff have prompted rethinks of various HR processes, such as faster recruiting channels and more frequent and less formal performance review processes, to proactively identify issues that may prevent the retention of valuable staff, shifting the focus from non-traditional hiring procedures, and an emphasis on the workplace culture and lifestyle benefits.

5

6

Emergence of Micro-Influencer Marketing - personalities with a massive following on social media (e.g. content producers, beauty vloggers, celebrities, industry thought leaders).

More and more franchises are looking to collaborate with these micro-influencers to boost sales, build their online presence and bolster brand awareness.

8

9

Some franchise companies have come up with a so-called employee-tofranchisee program: a program that allow employees to work their way to becoming their “own boss”. Once they meet programspecific requirements, they can buy a franchise location with little or no equity.

Sarah Kulbatski

10

In the past, we have seen more minorities purchase and operate franchise businesses, however, more and more women are making waves in the industry, from fast-food to IT management and everything in between.

Sarah Kulbatski is the COO of JT Franchising. By virtue of having spent most of her professional career in the franchising sector, Ms. Kulbatski, a dynamic individual with a passion for business, who is driven to achieve short and long term results, with a commitment to quality and sustainability, has extensive experience in working within a climate of positive franchise relations. Ms. Kulbatski believes that a climate of positive franchise relations lies at the heart of a successful and thriving organization. www.jtfranchising.com

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 33

fe at ure : t r en di ng fr a nch ises

Expert Advice: Christopher Conner | President of Franchise Marketing Systems

Setting the Trend in Franchising

Franchising is an amazing industry. There are so many elements to the business which give an insight into what’s happening in the small business world, what markets are growing or declining and what consumer trends are taking shape.

Franchising USA

Due to the nature of small business, it is sometimes difficult to have accurate data or market research because of the fragmented nature of the privately owned companies that make the market. Franchising is one way to have an eye on the small business community trends and opportunities. As industry categories pick up momentum and consumers speak with their dollars, franchise brands are born and franchise industry categories develop significant traction.

Franchise Marketing Systems is a franchise development firm, we help companies franchise their business and go to market as a franchise offering. One of the really fun parts of this work is to be able to see

first hand what markets are expanding and growing enough to support franchise development efforts. If someone is franchising a business, there must be increasing trends in consumer purchasing for that particular product or service category. Maybe, in some cases, it isn’t necessarily the what, but more the how people prefer to purchase the services or products. I have been working in franchise development long enough to see some of these trends come and go and look back on the growth spurts of some and the collapse of others. I am a big proponent of entrepreneurship and hate to see anyone go out of business. So what trends do we see in the franchise market today and

“When investing in a business, the growth of the market and of a particular franchise brand isn’t as relevant to the success of your franchise investment as the bottom line of the actual business itself.” how can we better navigate the currents of capitalism to make better business decisions in the future?

One thing I’ve noticed in any given franchise market trend is that franchise investors like things that are new and innovative. When someone creates a business model that is really game changing and “out of the box”, people start to pay attention. Think of some of the most recent franchise trends that have taken shape in the industry. Massage, Fitness and even Pizza have all had their moments in franchising in the last decade and continue to show signs of growth.

What caught people’s attention? One brand in each category that created a new system and a new way of doing things that brought life, innovation and growth to an entire category.

Massage Envy was certainly the leader and still today leads the way in the massage market. The brand accomplished this by bringing a modernized approach to the antiquated massage industry and “McDonaldizing” the business model with a membership program, strong branding and a consistent way of doing business that opened up massage to the every day person. Soon after, the growth trend started and along came a variety of massage service franchise brands, all of which experienced significant growth including Hand and Stone, Elements, Massage Heights along with others.

The Fitness market is in the midst of a complete revolution started by Orange Theory, the boutique, classroom fitness brand which opened up the entire market for growth with a community-focused, trainer-led fitness service. Consumers spoke with their spending and moved away from the traditional big box gyms and into this model. Along with Orange Theory, RockBox, Title Boxing and others expanded by leaps and bounds and opened locations in strip centers around the world.

Maybe the most incredible franchise trend today is the pizza market, which had been

essentially stagnant for decades with very little innovation or brand development.

Blaze Pizza changed this with a new way to serve pizza to the consumer, quick, convenient and almost “Subway-like”. The market went nuts and so did the franchise industry. Mod Pizza, Pieology and D.C. Pizza were all derivations of the Blaze model which benefited from this market expansion. In each of these cases, the trends remain positive and the markets continue to expand quickly creating opportunities for investors and long lines at the cash register.

But how do you analyze whether a trend is genuine opportunity or just market hype? I was in franchising when people launched the ebay drop off store market craze. In the midst of the market growth, it was hard not to get excited about the brands expanding so quickly and the technologydriven concept. Hundreds of ebay stores were opened under a variety of different brands, each of which disappeared as quickly as they opened when the consumer realized they could go right to ebay without dealing through a middleman. Frozen Yogurt recently experienced this kind of downturn after thousands of retail yogurt stores were opened. The model was fun, simple and easy to manage, it was understandable that investors jumped into the market in droves. The sad reality is that people lost a lot of money, in some cases all of their money. So what can you do to make a better investing decision and avoid falling victim to what happens to be popular at that point in time?

When making an investment decision, the age-old saying of keep emotions out of it seems to hold true here. It’s easy to get excited when everyone else seems to be running towards a “good idea”. But when investing in a business, the growth of the market and of a particular franchise brand isn’t as relevant to the success of your franchise investment as the bottom line of the actual business itself. Understand the numbers and verify that the profitability

Chris Conner

“Trends are not necessarily a bad thing, but to avoid calamity, good investment decisions require level headed thinking.” of a franchised business meets the ROI expectations you have for your investment.

Next, and maybe most importantly, do the consumer research to understand what trends are supported by consumer buying habits. If you see that people are buying more of the product or service from the particular business model you are considering investing in, that’s a good sign.

If the consumer market isn’t expanding as quickly as the number of franchises in the market, definitely bad. Trends are not necessarily a bad thing, but to avoid calamity, good investment decisions require level headed thinking.

Christopher Conner is the President of Franchise Marketing Systems and has spent the last decade in the franchise industry working with several hundred different franchise systems in management, franchise sales and franchise development work.

His experience ranges across all fields of franchise expertise with a focus in franchise marketing and franchise sales but includes work in franchise strategic planning, franchise research and franchise operations consulting.

For more information on how to choose the right food service franchise, contact Chris Conner at Chris.Conner@ FMSFranchise.com www.fmsfranchise.com

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 35

fe at ure : t r en di ng fr a nch ises

Expert Advice: Rick Bisio | Franchise Coach | FranChoice

Advice for Aspiring Franchisees about

What is Trending in 2019

Many times, when I meet someone and we make small talk, I am asked what I do for a living. When I tell them I am a franchise coach, their response is “what businesses are hot right now?�

Franchising USA

They want to know what is the next big thing that will make money and be a great success story. It is very similar to the stock market when people want to jump in and buy the stock that is on the rise.

that draw a lot of attention but are unable to sustain its initial success. Regardless, prospects need to be wary about trending franchises and do the proper research to figure out if it will have staying power.

People have been and always will be attracted to what is new and popular. That is the case with business opportunities, including franchising. Over the years, I have seen a lot of concepts that have been considered trendy and became quite profitable for many years. At the same time, there have been other franchises

While trendy business concepts may be prevalent and generate a lot of discussion, people should know they also come with a considerable amount of risk. All you have to do is look at examples from a couple of decades ago to see cases of hot new ideas with tremendous buzz that ultimately failed.

“Any kind of franchise opportunity requires research and due diligence on behalf of the potential owner to try to gauge the likelihood of it being a successful venture. That is certainly the case with a trending franchise.”

In the 1990’s, consumer demand for bagels increased, which led to the opening of bagel restaurants. Everywhere you looked, there was Bruegger’s Bagels or Einstein Bros. Bagels popping up. Eventually other restaurants responded by simply adding bagels to their menus. It then became difficult for the businesses serving only bagels to survive when so many other restaurants then started serving bagels as well.

In the early 2000’s, eBay stores were all the rage. They sold thousands of these and people had plans to open an eBay store and get rich. After the initial wave of popularity, the stores fizzled out. Home meal replacement companies were very trendy several years ago but many of them have now gone out of business.

What are some examples of franchises that are currently trending? Paint and sip locations are a relatively new phenomenon in which you paint pottery or artwork while having a glass or two of wine with friends. Another business that is currently popular is cryotherapy chambers, which uses cold temperatures as treatments for various ailments. Same goes for the surge in cannabis stores selling marijuana in states in which it is legal.

So how do we know if any of these are good business opportunities worth exploring or are a flash in the pan that will quickly run its course? I always recommend to people that they should ask themselves “is it an industry?” or is it just a cool idea or menu addition? Try to look ahead 10 years into the future and determine what the business will look like at that time.

In applying this approach to the example of cryotherapy chambers, do we see a vision or future where there are cryotherapy businesses all over the country? Will there be enough demand for their services where

people will continue to seek treatment to the point it will become a successful standalone business?

I personally have a hard time imagining that. I think cryotherapy will still be used 10 years from now, but it is essentially a menu addition. If cryotherapy continues to be popular, a doctor’s office can add that service, or a franchise like Massage Envy could add a chamber to every location if they desire. It then looks like the case of bagel restaurants suffering when other stores start adding bagels to their menus.

Given its current popularity, I would expect thousands of cryotherapy franchises sold, but I would be very surprised if cryotherapy becomes a sustainable sector.

The case of cannabis stores is another very interesting example of a trendy business.

There have been many stores that have opened in recent years and successfully capitalized on the legalization of marijuana in certain states. As we look 10 years from now, will people continue to smoke cannabis? Yes, absolutely, I’m positive they will. But then the question is, how will the industry evolve?

That is something I can’t quite answer, but I do ask myself several things regarding the industry. In the coming years as more states legalize marijuana, the federal government will change the laws and make it legal. So, what happens at that point? My guess is all the big businesses that are currently selling tobacco will all get into the cannabis industry. They have already positioned themselves for this by purchasing manufacturing facilities.

Cannabis may be sold by a wide variety of locations and there may not be a need for stand-alone cannabis shops. It is difficult to completely project the future of marijuana sales in this country, but this case is an interesting situation to consider.

This is not to say that all trendy business opportunities will be doomed to fail

Rick Bisio

over time. The fitness industry is trendy with new popular forms of exercise. If we go back and ask if this concept is an industry and will it still be around in 10 years, the answer is clearly yes to both. It has been a successful business for years and I can’t imagine a decade from now, people will not have an interest in personal fitness. You will just want to make sure the particular concept has staying power.

In looking at exercises such as Pilates and yoga, they have been successful for a long time and that should continue to be the case in the future.

Any kind of franchise opportunity requires research and due diligence on behalf of the potential owner to try to gauge the likelihood of it being a successful venture.

That is certainly the case with a trending franchise. Franchises require a significant financial commitment and you will want to make sure the business will continue to have customers and will be profitable over the long-term before buying in.

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

Franchising USA

fe at ure : t r en di ng fr a nch ises

Page 37

sn apsh ot

T h e G r ow t h C oac h

[TECH] Smart ™ Time Management

The Growth Coach Franchise’s Latest Move Signals Their Foray into the Digital Realm “Smart Time Management™ provides all Growth Coach clients with the option for interactive, self-paced, virtual training while still receiving the perks that only personal coaching provides.”

Convenience is Convincing

The demand for business coaching has ballooned into a massive $11 Billion industry.

With over 28 Million businesses in the

United States, as the demand for coaching has increased, so too has the demand for

easily-accessible, cutting-edge, resources.

To improve their bottom line, businesses and business-owners across the country

are always looking for new approaches to employee development. Employers might

be interested in a business consultant, but not if it requires too much travel or too

many logistics. For this reason, employers and business coaches alike are growing

increasingly interested in the benefits of

digital assets and semi-virtual coaching.

Franchising USA

The Demand for Digital The Growth Coach Franchise has responded to this demand by unveiling its latest foray in the virtual/digital side of coaching. Smart Time Management™ provides all Growth Coach clients with the option for interactive, self-paced, virtual training while still receiving the perks that only personal coaching provides. By utilizing this virtual/personal hybrid, clients can take advantage of the 24/7 accessibility and convenience of the web, while also receiving the proper encouragement and tone that comes only with personal connection. Growth Coach believes the human element is what drives engagement and growth, while newly created digital assets ensure all clients get the resources they need to succeed, thus creating a highly effective one-two punch designed to drive results and promote retention.

Another major reason why virtual coaching has become so enticing to employers is the utter convenience. According to Lisa Hudson, President of The Growth Coach, Smart Time Management™ allows Growth Coach Franchisees to serve far more clients by making the logistics easier for everyone.

“While group-coaching is great- especially when it’s hands on- it also requires people actually get in their car.” And while the program is technically designed to be supplemental, by offering coursework, videos, assessments, and personalized modules, it can absolutely stand alone for even the most remote clients.

Just the Beginning Smart Time Management™ is yet another addition to Growth Coach’s many services, but it is not the last. Signaling a concerted effort to capitalize on the potential of the digital realm, Hudson says that clients can expect more and more digital options in the coming months. Growth Coach is confident that as they continue to build out their mixed curriculum and catalogue of virtual resources, it will continue to drive better results for employers, clients, and coaches, alike.

For more information on becoming a Growth Coach and further information about all their offerings, please visit www.growthcoachfranchise.com/digital

Page 39

WORK SMART

NOT

HARD!

IFG 50/50 - A Different Franchise Approach!

NO

Staff Premises Long hours Paper Inventory

WE BUY INVOICES TO ACCELERATE OUR CLIENTS’ CASHFLOW! WE DO NOT LEND MONEY!

GET A FREE eBOOK www.Interfacefinancial.com/franchise

AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED

For more information contact David Banfield, President E: ifg@interfacefinancial.com Franchising USA