Franchising World Magazine - April 2024

Page 56

IFA 2024 CONVENTION HIGHLIGHTS PG. 34 APRIL 2024 FRANCHISE.ORG Leadership, Growth & Development Issue Restaurants of the Future are Taking a Non-Traditional Approach PG. 36 Going the Distance with Franchising PG. 40 Three Tips to Building a Strong Infrastructure to Fuel Franchise Growth PG. 44 SPECIAL CONTENT Learn Critical Updates at IFA’s Legal Symposium PG. 10 IFA Franchisee of the Year Award Winners PG. 14 CFE Class of 2024 PG. 24 IFA ANNUAL FEBRUARY 17–20 PHOENIX, AZ 2024 KELLI VALADE DEION SANDERS
JOE MANCHIN
PRICE DON YAEGER
SEN.
ROB

Your Hiring and Retention Checklist

Use HR Tech To Enhance the Employee Experience

HR technology can help your franchise gain a competitive edge in today’s tight labor market. Prevent turnover by utilizing data-driven insights and understand why your top performers leave.

Download our hiring and retention checklist to learn how HR technology can help you find the right talent for your team and keep them engaged, productive, and loyal.

We provide actionable insights to help you:

• Save time with new-hire prep work

• Streamline your onboarding process

• Improve your hiring process to find higher-quality candidates

• Enhance your employee’s experience and reduce turnover

Scan or click the QR code to download now! www.paychex.com/worx/guide/talent-checklist

Easier payments are the key to international franchising success

Everyone wants brand expansion, but not the complexity associated with cross-border payments. That's why franchisors rely on Flywire to support international expansion efforts and provide an easier way for their franchisees to pay. 240+ COUNTRIES

Franchisee in X country receives invoice in USD

Forced to navigate FX, high fees, payment delays Without Flywire

Selects currency and payment method, no FX risk or hidden fees, receive full amount With Flywire

CURRENCIES 35+ SPOKEN LANGUAGES
AND TERRITORIES 140+
GTLAW.COM REAL ESTATE TAX ANDSECURITIES CORPORATE &CYBERSECURITY DATA, PRIVACY , TECHNOLOGY &COPYRIGHTS PATENTS,TRADEMARKS , EIMMIGRATION MPLOYMENT& MADVERTISING ARKETING& HEALTH&PRODUCTSAFET Y REGULATORY COMPLIANCE : DOMESTIC TRADE INTERNATIONAL& RESTRUCTURING LITIGATION & POLICY GOVERNMENTLAW &DISTRIBUTION FRANCHISE ONE STOP SHOP ONE FIRM . ONE TEAM. Greenberg Traurig’s dedicated Franchise & Distribution practice provides clients with a truly “one stop shop” firm for their legal needs. WORLDWIDE LOCATIONS United States, Europe and the Middle East, Asia, Latin America Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2024 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney Advertising. Contact: Alan R. Greenfield in Chicago at 312.456.8400 / David W. Oppenheim in New Jersey at 973.360.7900. °These numbers are subject to fluctuation. 39927 GREENBERG TRAURIG, LLP | 2750 ATTORNEYS | 47 LOCATIONS WORLDWIDE ° FOR MORE INFORMATION : Contact us at gtfranchise@gtlaw.com or visit www.gtlaw.com/franchise Greenberg Traurig, LLP  GT_Law GreenbergTraurigLLP  GT_Law
10 New Year, New Rules: Learn Critical Updates at IFA’s Legal Symposium By Karen Boring Satterlee, Hilton Worldwide Holdings, Inc., and IFA Legal Symposium Task Force Chair 14 IFA Franchisee of the Year Award Winners 24 CFE Class of 2024 34 8 Highlights From the 2024 IFA Annual Convention 36 Restaurants of the Future are Taking a Non-Traditional Approach By David Bloom, Capriotti’s and Wing Zone By Lee Braun, Perspire Sauna Studio 44 Three Tips to Building a Strong Infrastructure to Fuel Franchise Growth By Scott Snyder, Bad Ass Coffee of Hawaii 48 Building a Franchise From the Ground Up By Joshua Malik, Joshua Tree Experts 52 Leadership Challenges for Emerging Franchisors By Randy Hetrick, OutFit Training IFA ANNUAL FEBRUARY 17–20 PHOENIX, AZ 2024 34 44 FEATURES SPECIAL CONTENT 4 FRANCHISING WORLD / April 2024 CONTENTS APRIL 2024 • VOLUME 56 • ISSUE 2
COLUMNS 6 From the Desk of IFA’s President and CEO 8 People & News 80 Featured Franchisees 85 FranPAC Report Card 87 Welcome New IFA Members INDUSTRY INSIGHTS HOME SERVICES & HOME BASED 54 Home Service Franchise Industry Outlook for 2024 By Khadija Cochinwala, FRANdata 56 Combine the Benefits of Rising Consumer Demand with the Efficiencies of Seasonal Franchise Opportunities By Michael Moorhouse, Mosquito Shield 58 Dedication to Franchisees: How Ongoing Training Elevates the Franchise Experience By Stefan Figley, 1-800-Packouts 60 Embracing Sustainability: Our Journey in the Gutter Services Industry By Danny Horboychuk, The Brothers that just do Gutters 62 Flourishing Prospects in the Home Services Industry By Danielle Wright, Premium Service Brands 64 How the Home Services Industry is Filling a Void By Austin James, Buzz Franchise Brands LODGING 66 A Spotlight on the Lodging Industry By Khadija Cochinwala, FRANdata FRANCHISE OPERATIONS 68 Quality Assurance in Franchise Operations: Maintaining Standards and Ensuring Customer Satisfaction By Jason Leverant, AtWork TECHNOLOGY 70 Revolutionizing Franchise Development and Support: The Impact of AI Integration By Joe Malmuth, Batteries Plus INTERNATIONAL 72 Legal Updates from Around the World By Kevin Maher and Abhishek Dube, Baker McKenzie LEGAL 76 The FTC and Franchising By David Koch and Lee Plave, Plave Koch PLC 78 Prospective Franchisee – No Need for a Lawyer. Wrong! By Harris J. Chernow, Reger Rizzo & Darnall April 2024 / FRANCHISING WORLD 5 EDITORIAL: Publisher Matt Haller Associate Publisher Jennifer Brandeen Editor-in-Chief Courtney Pettinella MARKETING & PRODUCTION: Creative Director Heather Bartlow Graphic Designer Catherine Marinoff ADVERTISING & CIRCULATION: Advertising Senior Director Carly Wooley Technology & Operations Director Sara Williamson Manager, Advertising Lauren Smith Franchising World (ISSN 1041-7311) “Volume 56, Number 2,” is published by the International Franchise Association, 1900 K St., N.W., Suite 700, Washington, D.C. 20006. For advertising information, call: IFA Advertising Department (202) 628-8000. Franchising World welcomes views and comments from its readers. Correspondence should be addressed to Editor, c/o Franchising World at 1900 K St., N.W., Suite 700, Washington, D.C. 20006. Franchising World reserves the right to edit letters for publication and also reserves the right to refuse advertising. With the publication of Franchising World, IFA is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialized fields before acting on any information published herein. The views and opinions expressed in Franchising World are those of the author(s) and do not necessarily reflect the views and opinions of IFA members or staff. Copyright © 2024 International Franchise Association. FRANCHISING WORLD ®
TOPICS

A2024

IFA ANNUAL

t the International Franchise Association, we kicked off the first quarter of 2024 with resounding success at the IFA Annual Convention. We welcomed more than 3,700 attendees from over 30 countries to Phoenix, Arizona for our hallmark event. This year, our convention theme — “Franchise Smarter” — perfectly captured another year of growth, development and success for the franchise business model. The theme Franchise Smarter allowed us to dive deeper on every aspect of successfully franchising — and doing it in the right, responsible way. Over the course of four days in Phoenix, we not only heard from franchise leaders, celebrities, politicians and leadership experts during each general session, but also hosted 44 breakout sessions, packed more than 55,000 meals for Meals of Hope through IFA’s Franchising Gives Back program, recognized 109 Franchisee of the Year Award winners, congratulated 170 new CFE graduates, and honored six amazing franchise leaders as our 2023 IFA major award winners. That’s the way to kick off a new year!

With this great start to 2024, I’m excited to see how our members will apply the lessons they learned at the convention to continue to “Franchise Smarter” in the year ahead. Luckily, you don’t have to wait another year to build on everything that you and your team learned in Phoenix, or to dive deeper on responsibly franchising — you just have to

As many IFA members know, 2023 was a year of regulatory challenges for franchising. While IFA continues to successfully fight the battles of the day, the continued threats from the Federal Trade Commission, the National Labor Relations Board, and states across the country show the continued need for vigilance and a proactive strategy going forward. At this year’s Legal Symposium, we will not only offer the breakout sessions, panels and networking opportunities

community must play to protect the business model for the next generation.

I hope you’ll join us in DC for the 2024 IFA Legal Symposium to learn more about the strategy IFA is enacting to protect the model and uphold responsible franchising. More information, along with registration and hotel booking information, is available at franchise.org/events/2024-legal-symposium.

For those of you who attended our annual convention, thank you for investing in yourself, your business and the franchise experience. For those who couldn’t make it this year or were with us in spirit, know we are working hard on your behalf so that your business, your community and the global economy feel the impact of what happens when so many talented, committed people work together.

Here’s to another great month!

Sincerely,

IFA’S MISSION

The International Franchise Association protects, enhances and promotes franchising.

IFA’S VISION

The preeminent voice and acknowledged leader for franchising worldwide.

EXECUTIVE COMMITTEE

Steve Hockett Great Clips Chair

Mary Kennedy Thompson, CFE Neighborly Vice Chair

Sam Ballas, CFE East Coast Wings + Grill Second Vice Chair

David Humphrey Ignite Fitness Holdings Immediate Past Chair

Bill Hall, CFE Treats Investment, LLC

Treasurer

Steve White PuroClean Chair, IFA Foundation Board of Trustees

Ron Feldman, CFE ApplePie Capital Vice Chair, IFA Foundation Board of Trustees

BOARD OF DIRECTORS

Jerry Akers Great Clips & The Joint

Tom Baber IHOP / Money Mailer

Marcus Banks Wyndham Hotels and Resorts, Inc.

Rob Branca Branded Management Group, Inc.

Michael Browning, Jr.  Unleashed Brands

Mitch Cohen Jersey Mike’s Subs; Sola Salon Suites

Adam Contos, CFE Area 15 Ventures

Randy Cross, CFE Fish Window Cleaning

Kimberly Crowell Kalo Companies

Steve Danon Restaurant Brands International

Jay Duke BDO USA, LLP

Clint Ehlers FASTSIGNS of Willow Grove, PA and Cherry Hill, NJ

Shane Evans, CFE Massage Heights Franchising

Sean Falk, CFE Just for Paws, LLC

Karen Finberg Marriott International

Greg Flynn Flynn Restaurant Group

Christopher Fuller Inspire Brands

Robin Gagnon, CFE We Sell Restaurants

Ericka Garza

Michael Gonda McDonald’s

Daniel Halpern Jackmont Hospitality

Dustin Hansen , CFE InXpress

Jon Hixson Yum! Brands

Harvey  Homsey, CFE Express Services, Inc.

Earsa Jackson , CFE

Clark Hill Strasburger

Aslam Khan

Falcon Holdings

Lillian Kirstein 7-Eleven

Tom Krouse

Donatos Pizzeria LLC

Ned Lyerly, CFE Starheel Ventures

Dennis Maple Goddard Systems, LLC

Dan Monaghan , CFE

Clear Summit Group

Kevin Morris

Domino’s Pizza LLC

Dave Mortensen Self Esteem Brands

Caroline Oyler Papa John’s

David Pepper Choice Hotels

Sarah Powell Focus Brands

Meg Roberts, CFE

The Lash Lounge

Gary Robins

The G & C Robins Company

Al Rodriguez Sport Clips

Indi Nandhra, CFE Mathnasium Chair, Franchisee Forum

Karen Satterlee, CFE Hilton Worldwide Chair, Franchisor Fourm

Tom Portesy Business Show Media Chair, Supplier Forum Advisory Board

Christina Russell, CFE

Azim Saju HDG Hotels

Luis San Miguel

Fresh Dining Concepts

Jyoti Sarolia, CFE

Ellis Hospitality Group

Heidi Schauer

The Wendy’s Company

Abby Schmidt Paychex

Michael Seid, CFE

CFW Clinics and One Family Health

Stephen Shields Express Employment

Omar Simmons

Exaltare Capital Partners

Christine Son

Dine Brands Global

Jeffrey Sopp

Kensington Hill Partners

John Teza Hand & Stone Franchise, LLC

Carolyn Thurston, CFE

Wisdom Senior Care

Larisa Walega , CFE

Ziebart International Corporation

Charles Watson , CFE

Tropical Smoothie Café

Graham Weihmiller, CFE BNI

Tim Williams

Williams Fried Chicken

From the Desk of IFA
President and CEO Matt Haller
6 FRANCHISING WORLD / April 2024
FEBRUARY 17–20 PHOENIX, AZ

Now that you have achieved profitabilit y – and the riskiest phase is over – keep your equit y and reap the economic rewards of continuing to scale the business.

Diversified Royalt y Corp’s royalt y transac tion is a liquidit y option that provides:

Diversified Royalty Corp. is a publicly traded company engaged in the business of acquiring top-line royalties from well-managed, multi-location businesses and franchisors in North America.

Please visit us at Booth # 400 at the Mandalay Bay Convention Center, Las Vegas, Feb 9 – 12

FRANCHISORS: GET LIQUIDIT Y. KEEP CONTROL.
SCAN THIS CODE TO LEARN MORE OR VISIT US AT DIVERSIFIEDROYALTYCORP.COM
LIQUIDIT Y OF A PRI VATE EQUIT Y DE A L 100% CONTROL RE TA INED SIGNIFICA NT UPSIDE VA LUE OF NE W STORE GROW TH NO CHA NGE IN FR A NCHISOR /FR A NCHISEE REL ATIONSHIP
GET THE MOST OUT OF YOUR FRANCHISOR BUSINESS IFA CONVENTION 2025

PEOPLE & NEWS

People ON THE MOVE Top 5

Chad Palmer

Chad Palmer has been promoted to chief marketing officer of United Franchise Group.

Rob Price

Rob Price has been named chief customer officer for Youth Enrichment Brands (YEB) in addition to remaining with School of Rock as brand president.

Brands Expanding

Bob DeGraff

N-Hance Wood Refinishing has named Bob DeGraff as brand president.

Shane Evans

Massage Heights co-founder

Shane Evans has stepped back into her role as CEO.

Nancy Delgadillo

Code Ninjas has welcomed Nancy Delgadillo as vice president of franchise development.

Goldfish Swim School Franchising, LLC, achieved significant growth over the last year, opening 21 new schools in 13 states and inking franchise agreements to develop 40 schools in 10 states over the next few years. In 2023, Goldfish continued expanding its footprint across the United States, opening schools in Alabama, Georgia, Illinois, Kentucky, Maine, Michigan, New Jersey, New York and Washington. Each of the 21 new locations can bring up to 50 jobs to the community. The new Maine school is the state’s first, opened in Portland by multiunit franchisees Tim and Jennifer Casper, who also own schools in New Jersey.

Marco’s Pizza announced a development plan to bring four new locations to Boise, Idaho. This strategic move aims to fortify the brand’s footprint in the northwest region. The first two locations are slated to open in Caldwell and Kuna this June. Shortly to follow the initial two openings will be a third location in Meridian, which is expected to open by the end of summer. Site selection is currently underway for the fourth location.

8 FRANCHISING WORLD / April 2024
OPEN

Awards, Honors & Achievements

Tutor Doctor held its annual conference in Toronto to recognize outstanding franchisees and celebrate the brand’s achievements and goals. This year’s conference, “Dream. Believe. Achieve.,” was centered around the importance of human connection, embracing future opportunities, and empowering franchisee success. Franchisees were recognized for their work and commitment to the Tutor Doctor mission of changing the trajectory of students’ lives. Some of the winners include:

z Franchisee of the Year Award: Veronyk Zinn and Tiffanie Cormier, Tutor Doctor Sudbury, Canada

z President’s Award: Clive and Vanessa Robinson, Tutor Doctor master franchisees, South Africa

z Rookie of the Year Award: Maureen Carr, Tutor Doctor Marin County, CA

Franchising Gives Back

Sport Clips

Sport Clips has donated $1.3 million to Veterans of Foreign Wars (VFW) Help A Hero Scholarships for veterans. The donation event was held at VFW Post 7397 in Lenexa, Kansas, and marks the eighth year in a row of donating more than $1 million for the Sport Clips VFW Help A Hero Scholarship program. Help A Hero has grown to be the largest scholarship program of its kind, offering service members and veterans support for education often needed in post-military careers.

Veteran-founded Sport Clips began work with the VFW in 2013 to provide Help A Hero scholarships. To date, the program has awarded more than 2,900 scholarships totaling more than $13 million.

The application period for fall 2024 Help A Hero Scholarships is open now through April 30 to receive up to $5,000 of assistance per semester, per family for service members and veterans in the rank of E-5 and below. To find out more, visit your local Sport Clips, SportClips.com/hero or vfw.org/Scholarship

SPONSORED BY

Three Five Star Franchising brands have been named to Entrepreneur magazine’s 2024 list of the fastestgrowing franchises in the United States and Canada: Mosquito Shield (#51), Five Star Bath Solutions (#96) and Gotcha Covered (#105).

One Hour Heating & Air Conditioning

To express their gratitude to the men and women who served our country, One Hour Heating & Air Conditioning launched its inaugural HVETerans Giveaway. As part of the giveaway, One Hour Heating & Air Conditioning would deliver the winner a complimentary new HVAC system. The winner was chosen based on their need for a heating and cooling system to help them stay warm or cool at home year-round and their personal story of serving in the military.

Brian Scott, a 15-year U.S. Army veteran in Williamsburg, won the contest and received a complimentary HVAC system valued at $10,000. The installation and service happened February 2 by One Hour Heating & Air Conditioning of Hampton Roads.

PEOPLE & NEWS Predictive Performance Executive Search www.capodice.com (941) 906-1990 Ranked Among America’s Best Executive Search Firms
Brian Scott with his wife, Andrea. One Hour Heating & Air Conditioning installing a complimentary HVAC system at Brian Scott’s house. Brian Scott serving in the military.
April 2024 / FRANCHISING WORLD 9

NEW YEAR, NEW RULES: LEARN CRITICAL UPDATES AT IFA’S LEGAL SYMPOSIUM

10 FRANCHISING WORLD / April 2024 FEATURE

Navigate recent changes to help your franchise succeed in 2024.

As an informed IFA member, you already know that 2023 brought major legal changes that impacted how your franchise does business. But here’s something you might not know: the International Franchise Association has a variety of educational sessions to help you navigate every essential detail.

These sessions are part of our annual IFA Legal Symposium, which will take place in Washington, D.C., from Sunday, May 5, to Tuesday, May 7, 2024.

Attendance at the 2024 IFA Legal Symposium has never been more critical. As you may recall, the Federal Trade Commission requested key information from franchisors in March 2023 — including detailed requests relating to franchisor business practices within franchise systems, questions relating to how franchisors manage franchisees and their employees, whether franchise agreements are negotiable and the use of the standards manual to implement system changes.

In October 2023, the National Labor Relations Board updated a rule in the National Labor Relations Act. Under the 2023 Rule, any entity that exercised or even had reserved the right to exercise control (including indirect control) over at least one essential term of employment would be a joint employer with the workers’ undisputed employer, even if such reserved control had never been exercised. This meant that virtually every entity that contracts for labor would be a joint employer because virtually every contract for third-party labor has terms that impact, at least indirectly, at least one of the specified “essential terms and conditions of employment.” On March 8, the 2023 Rule was reversed. For now, joint-employer status will be determined under the 2020 Rule, which states that an employer will be considered a joint employer only when it exercises “substantial direct and immediate control” over the essential terms and conditions of another company’s employees. We expect the NLRB to appeal. Confused yet?!

The IFA has programming to give everyone the tools they need to navigate the changing landscape of franchising. The IFA Legal Symposium benefits hundreds of franchise practitioners annually by ensuring they are up to date on the latest legal developments — keep reading to see how it will benefit you, too!

An Informative Track for Every Member

As we did last year, we have designed several tracks for franchise CEOs, development and sales executives, legal and compliance officers, and administrators. Attendees may choose from the Litigation, International, Relationship, Business Issues, Transactional, Corporate, Intellectual Property, and Registration and Disclosure tracks. Those choosing our popular Basics track will receive a solid foundation in topics like mergers and acquisitions, franchise litigation, handling defaults and termination, registration and disclosure, international franchising, and trademarks and IP.

Breakout Sessions That Help You Think Beyond the Box

Always well attended, the breakout sessions at our annual Legal Symposium are designed to infuse fresh dialogue, learning, and ideas across all aspects of franchising. Here’s a sample of what’s in store for you in May:

• “Brand-emonium!”: Learn how new brands can impact existing brands under the same family or parent company.

• “What Do These Common Contractual Words

Actually Mean?”: Brush up on your legalese with the defining session on contract language.

5–7
April 2024 / FRANCHISING WORLD 11
SYMPOSIUM LEGAL MAY
2024

SYMPOSIUM LEGAL

REGISTER TODAY: franchise.org/events

members to shake new hands, see familiar faces, and strengthen connections across industries, experiences, and service areas.

After the success of last year’s Rising Legal Professionals Meetups, incumbents in the franchising industry will enjoy meeting other like-minded individuals at this symposium. Members are also invited to various luncheons, roundtables, receptions, and more, all facilitated by those in non-legal franchise businesses. The IFA thrives with the diverse perspectives of franchisees, franchisors, and suppliers, and these sessions aren’t to be missed!

Continue the Learning with Additional Opportunities

By attending and participating in the 2024 IFA Legal Symposium, attendees will earn education and participation credits towards completing the Certified Franchise Executive (CFE) accreditation.

• “Not your Father’s Franchise Rule: Potential Changes to the FTC Rule to Promote ‘Responsible Franchising’”: Learn about potential changes to the FTC Rule and how they relate to “responsible franchising,” including a new form of FDD and a new broker registration proposal.

• “Fair Franchising Laws”: More countries are introducing “fair franchising” laws that are forcing franchisors to change their contract terms. Learn about the latest trends in international franchising.

There are too many to list here (all the more reason to come and explore for yourself!). Additional breakout sessions include programming for in-house counsel, a survey of franchise sales programs, programming related to dispute resolution, antitrust law, the dos and don’ts of using marketing funds, how labor laws are shaping our industry, and our ethics program, which this year focuses on the use of artificial intelligence in franchising.

Member Meetups, Luncheons, Roundtables and More

At the heart of every IFA event is our active community, and our Legal Symposium will offer ample opportunities for

IFA is also partnering with the International Bar Association for the IBA/IFA Joint Conference from May 7-8. A highlight of this joint conference is “News from Around the World,” crucial for any international franchise law specialist. We hope you come hungry to learn and to eat — the dinner is a prime networking event.

Now Is the Time to Book

There are many options for registering for the Legal Symposium. We strongly encourage members to pre-register at franchise.org/events by May 3, 2024, to secure their spot. Due to the critical nature of this information, on-site registration will be available with a $100 registration fee.

We look forward to seeing you at the IFA Legal Symposium and the IBA/IFA Joint Conference, both at the Grand Hyatt in Washington, D.C. Here’s to an informed and inspired 2024!

hilton-hotels-resorts

Karen Boring Satterlee is the senior vice president and assistant general counsel, Asia Pacific, at Hilton Worldwide Holdings, Inc., and IFA Legal Symposium Task Force chair. For more information about IFA franchisor member Hilton Worldwide, please visit franchise.org/franchise-opportunities/
5–7
WASHINGTON, DC
12 FRANCHISING WORLD / April 2024

CONGRATULATIONS TO John Duffy and Steve Howerton

IFA FRANCHISEE OF THE YEAR

City Wide Facility Solutions is proud to congratulate John Duffy & Steve Howerton, owners of City Wide – Tampa Bay and City Wide – Miami, on being awarded the International Franchise Association’s (IFA) prestigious Franchisee of the Year Award.

We thank John and Steve for continually spreading a massive ripple across the City Wide system and their local communities. Ripple on!

For Franchise Information Contact: citywidefranchise.com

(855)
TRY-CWFS

IFA FRANCHISEE OF THE YEAR AWARD WINNERS

IFA is proud to recognize the following franchise owners for the 2023 Franchisee of the Year Awards who were honored during the 2024 IFA Annual Convention. These franchise small business owners were nominated by their franchisors for their exemplary performance, dedication to franchising and commitment to their communities. Congratulations!

Aaron Carpenter & Joanne Oh Grand Welcome of Bend and Central Oregon

Adam Saxton & Matt Saxton The Saxton Group

Angela M. Goodman Eateries of Loudoun, Inc.

Anne & Matt Evers Drybar

Austin Wighaman BODY20 Bee Cave

Azim F Saju

Ark Hospitality Management and Development

Bashnin Sherali

Ivy Kids of Alamo Ranch

Beth Dotson Huntington Learning Center

Brandon Hudson & Damion Mason HandM Pizza, LLC dba Marco’s Pizza

Brent Chapman Window Hero Triad and Top Rail Fence Triad

Brian Wick One Hour Heating and Air Conditioning

Bruce & Sarah Seidel Live Healthy Enterprises, Inc.

SPECIAL CONTENT 14 FRANCHISING WORLD / April 2024

CONGRATULATIONS!

Evan McIntosh, Franchise Owner Asheville, North Carolina

2023 IFA Franchisee of the Year

Green Home Solutions got our attention a few years back as we researched innovative and responsible companies. We joined the Green Home Solutions franchise system almost three years ago and it has been an impressive experience to grow with them.

The corporate team at the Franchise Service Center and all of the franchisees share a desire to be great and to build something admirable.

It’s a fun and exciting team to be a part of and I cannot wait to see and be a part of what we do ahead.

Learn more about joining the Green Home Solutions family

GreenHomeSolutions.com

Bryan Frnka Amazing Lash Studio

Candice & Brian Winterringer Wintco Sonic Group

Chris Sikes Handyman Connection of Wilmington

Christopher Baker Twin Coast Enterprises, Inc.

Christopher G. McJunkins McJunkins Restaurant Group

Christopher Shimer Ruby Food Company

Christy Boswell & Jim Boswell Scenthound - South Denver

Craig Smith Family Kitchen Tune Up Williamsburg/ Hampton Roads Virginia

Dan Parlin Budget Blinds of Durham, Cary, and North Raleigh

David & Lorri Jones BC Northwest

David & Lesly Lytle Concrete Craft of Northern Indianapolis and Hamilton County

David Houck Home Clean Heroes of South Charlotte

David Pawek & Chris Hordyk Screenmobile of the North Bay

David Potts AandL Insulation Operations

David Wagner Rancho Cucamonga Coffee Company LLC

Denise Cross The Goddard School, Reno Nevada

Dianne Melillo & Gabrielle Melillo Season 2 Consign Central NJ

Don Pingley & Jessica Hackney DJ HOLDINGS, LLC

Don Ruggery, Jr. & Jay Ruggery Spherion Staffing

Dr. Kobad & Mrs. Nancy Bugwadia Mathnasium Operated by Bugwadia Enterprise, LLC

Ed Taliaferro

Rose City Pizza, LLC - Cascade Dining, LLC

Eli & Abby Power Benjamin Franklin Plumbing

Eric Danver FGG Spa, LLC

Erik & Wendy Skaalerud Big Blue Swim School

Evan McIntosh Green Home Solutions of Asheville

Fred Franchuk, Debbie Franchuk, & Stephen Franchuk Home Instead

Gloriaellis Mattei & Sergio Pacheco Zags Enterprises Inc.

Hajira & Zubair Khan

Kiddie Academy of Fort Wayne and Southwest Fort Wayne, Indiana

Hicham El Abbassi & Isalmou Boussaa DT Nova LLC

Jace Stickdorn & Annette Payne Vitall Partners

Jacob Stump & Sarah Simpson Artworks of Jacksonville, Inc.

Jake Kiser CertaPro Painters of Athens/Gwinnett

Jared Lee Lee Hill Investments, LLC dba Sport Clips

2023 Franchisee of the Year Award Winners 16 FRANCHISING WORLD / April 2024

I’m truly humbled and honored by this Franchisee of the Year recognition. This achievement belongs to my entire team and our commitment to redefining payroll excellence. True innovation stems from open collaboration and giving back is woven into our culture. I’m grateful for this prestigious honor and motivated to continue raising the bar.”

Franchisee Excellence: Congratulating Karen Mora of Payroll Vault

Karen Mora, a shining star at Payroll Vault, has been awarded the esteemed title of Franchisee of the Year. Her unwavering dedication, innovative thinking, and exceptional service have redefined the payroll experience and set a new standard for excellence.

With a local-minded approach and a commitment to personalized solutions, Karen goes above and beyond to exceed client expectations. Her positive office culture fosters collaboration, creativity, and fun, inspiring her team to reach new heights.

Karen’s impact extends beyond her business achievements. She understands the importance of giving back, actively supporting local initiatives and charitable organizations. Her generous spirit reflects Payroll Vault’s core values and strengthens the community.

As we celebrate Karen’s well-deserved recognition, we are reminded of our shared vision at Payroll Vault – to Re-Define© Payroll and empower local businesses. Congratulations, Karen, on this remarkable achievement that highlights your commitment to service, innovation, and community.

Jason Edge Junk King Portland

Jason Kline & Cecilia Yi-Kline SoR NorCal LLC

Jeff Baker The Grounds Guys of Wichita

Jeffrey J. DeCoste The Cleaning Authority - Brookfield

Jeremy & Jenny Smith Mr. Electric of Tulsa, Oklahoma City and Norman

Jesse Keyser & Charles Keyser Keyser Enterprises

Jessica Hackney BSN, RN Hydrate IV Bar Highlands Ranch

Joe Sandoval The Junkluggers of Orange County, CA and East Valley, AZ

John Carlson Christian Brothers Automotive - North Scottsdale

John Duffy City Wide Facility Solutions - Tampa Bay

John Kim B-R 31 ICE CREAM CO., LTD.

John Villon & Nilo Quiroz PuroClean of Central Southwest Houston

Jon Witmer & Mark Clapper Re-Bath Lancaster & Re-Bath West

Chester

José F. Morillo

Camp Bow Wow Katy, Kemah & Cypress, TX

Joseph C. Erickson j THREE, Inc

Joseph E Christie A Place At Home - North Texas

Judi V. Tompkins ATC Healthcare Services

Julie & Lance Turner Express Employment Professionals

K.C. Ryerson Owl Be There of Frederick and Loudoun

Karen Mora Payroll Vault

Katie Edge Renovation Sells San Antonio

Kerry Sawyer BE Infinite Inc.

Kevin Schramm LIME Painting of Boise

Kimberly & Fernando Rosario Hat Trick Studios, LLC

Larisa & Jeffrey Posner Goldfish Swim School Livingston

Lawrence Kourie Cluckin Inc

Marc Rogers Rogers Restaurant Group

Mark Paretchan

First Light Home Care of Marin and Sonoma Counties

Matt & Tracy Moten Floor Coverings International Cleveland/Akron

Matt Skellan Bath Tune-Up Columbus North

Michael & Ana Guasch SpeeDee Oil Change and Auto Service

Michael Jania The Lash Lounge Chicago

Michelle Ginn Stretch Zone

Mike Davis Restorative Touch Inc., dba Elements Massage

Nicholas Lambie Ziebart of Morgantown

Noah Gross Two Maids of Spokane

2023 Franchisee of the Year Award Winners 18 FRANCHISING WORLD / April 2024

IFA Franchisee of the Year

I am beyond humbled and proud to accept the IFA Franchisee of the Year award. As a Huntington Learning Center franchise owner, I’ve gained a sense of purpose being part of this community while also building an asset that contributes to my family’s financial security. It’s meaningful work that is both personally and professionally rewarding. I am truly committed to Huntington’s mission to give every child the best education possible.

WHY HUNTINGTON?

• Low initial investment starting at $154,506

• Over 34% higher 2022 average revenue than our closest competitor

• Nearly 50 years as an industry leader

• $5 billion industry and projected to grow to $18 billion by 2028

(Source: Grand View Research)

HUNTINGTONFRANCHISE.COM • SCAN THE CODE BELOW SCAN TO LEARN MORE
1-800-653-8400 •
AVERAGE 2022 FRANCHISE CENTER REVENUE HUNTINGTON Mathnasium Kumon ClubZ! Learning Rx Sylvan $389k $328k $311k $301k $161k 34% HIGHER REVENUE* THAN OUR CLOSEST COMPETITOR $522k 2022 REVENUES FOR HUNTINGTON AND ITS FRANCHISE COMPETITORS.
Daphne, AL & Montgomery,
This is not an offer to sell a franchise. This franchise is offered only by our delivery of a franchise disclosure document to you in compliance with the Federal Trade Commission’s rule on franchising and various state franchise sales laws. *Data are based on each company’s Franchise Disclosure Documents (FDD) for all franchise centers open in 2021 except for Kumon, which are for centers open at least three years; and Sylvan, which are for centers open at least 24 months. Kumon reports in its 2021 FDD that its average franchised center open at least 36 months had 150 subject-students. We estimate a subject-student’s monthly fee from our web search of the phrase ‘How much does a parent pay Kumon’. We used the average of the high estimates, $145 per month per single subject. We estimated the registration fee of $50 and materials fee of $30 from this web search; and we estimate that half of a center’s enrollees pay these fees.
Huntington Proudly Congratulates Beth Dotson Beth Dotson Multi-Unit Franchise Owner Huntington Learning Center of
AL

Noah Witt True North Restoration of SW Oregon

Patricia Miller 365 Home Care LLC

Patrick & Erin Elgin

Sola Salons - Twin Cities

Paul A. Groshko Spavia Lincoln Park

Phillip Scotton PRIMO Partners

Renee Friedman-Goldstein FASTSIGNS of Orlando, FL- Central

Rich Schepler AlphaGraphics South Charlotte

Robert Branca, Jr. Branded Management Group

Robert Stapf British Swim School Hudson Waterfront, NJ

Robin Bray Woodhouse Spas

Rontario Hicks Pool Scouts of Huntsville

Rosalyn (Roz) Mallet PhaseNext Hospitality/Buffalo Wild Wings

Sai Hossain Wetzel’s Pretzels

Samantha Loy Always Best Care Senior Services

Sanjiv Chand Jasam Enterprises LLC

Sari Papazian AdvantaClean of Norcross and Buford

Sergio Angione SRA Home Inspections

Sergio Rodriguez Aire Serv of the Coastal Bend

SG Ellison Diversified Restaurant Group

Shae Sims Athletic Republic Park City and West Jordan

Shawna Hicks-Cranston PostNet of Lakewood Ranch

Stephanie O’Neill & Whitney Learie-Kellam Foxy Box Laser + Wax Bar, Kamloops

Steve Howerton City Wide Facility Solutions - Tampa Bay

Susan Mendenhall Mendenhall Restaurants LLC- IHOP

Teresa Hatter Smooth, LLC DBA Radiant Waxing Utah

Tim Kurtz Alpha Management Group

Tom Tobin Tobin Auto Services, LLC

Toni Gilbert The Honey Baked Ham Company

Tony Zack Mister Sparky Myrtle Beach, SC

Travis & Kirsten Hibbert Smoky Mountain Pizza LLC

Trey & Cindy Powell Mosquito Joe of Lake Murray and Augusta

Val Hill

Lee Hill Investments, LLC d.b.a. Sport Clips

Woodie Hippler

Any Lab Test Now

2023 Franchisee of the Year Award Winners 20 FRANCHISING WORLD / April 2024

We have five core values and they are the pillars of our company. Those five core values are faith, commitment, compassion, loyalty and integrity.

WOMEN OF WISDOM: Patricia Miller

Patricia Miller is a problem solver. She saw years ago that there was a need to support her husband’s young niece, and didn’t hesitate to let her move in at 11-yearsold. Today Patricia’s niece is a happy and healthy adult.

“It was one of those things of nurturing, caring, putting our village around her to help her really adjust to a different life. And she grew up to be doing very well,” explains Patricia.

This was one of many solutions Patricia has navigated in her life. Yet she had no idea then that the in-home support system she extended in this situation would someday expand to helping hundreds of others through Wisdom Senior Care, an in-home care franchise based in Durham, North Carolina.

Growing up in a small Georgia town south of Atlanta, she went to the big city for college and ended up working for IBM. It was there she met her husband, and when they had children Patricia stepped away from her career to raise them.

Then tragedy struck. Her husband died unexpectedly at 44-years-old. She was a single mom who needed to support her family. Enter a longtime friend named Carolyn Thurston. She asked Patricia to come work for her company, Wisdom Senior Care. “So we created a position called Client Relations Manager, and I became that lead role,” Patricia recalls. She navigated issues between the clients, caregivers, their families

and the company. “It was a lot involved in that role, helping pull all these pieces together. And so Miss Carolyn would always joke, she said, ‘You must really love doing puzzles because you like putting pieces together,’ and I said I do actually.”

Working at Wisdom Senior Care aligned with Patricia’s personal values. She was inspired by Carolyn Thurston’s mission behind the company to “keep wisdom at home” by supporting seniors staying safe and supported in their homes as they age. “We have five core values and they are the pillars of our company. Those five core values are faith, commitment, compassion, loyalty and integrity,” Patricia shares. This approach to business taken by Carolyn Thurston, the company COO Charles Thurston and Wisdom Senior Care led Patricia to pursue owning her own franchise when the company scaled to become a franchisor.

In March 2020, Patricia opened her Wisdom Senior Care location in Chatham County, North Carolina. Then the pandemic hit almost immediately, but the connections she had established through the company’s support set her up for success. “We have a system with the franchise, so the system created a level field where you could go out and meet clients, you could meet strategic partners, and that’s what we’re doing. We’re taught how to do that, to get your business going because it’s such a tremendous need,” she explains.

wisdomseniorcare.com

THE BUSINESS OF KEEPING HOMES PEACEFUL

Property restoration is a rapidly growing $210 billion dollar industry in need of community heroes like you.

Start serving your community with a PuroClean franchise.

SCAN
IN
HERE Download our FREE franchise kit and speak with a PuroClean team member today.
www.PuroCleanFranchise.com

CLASS OF 2024

The Certified Franchise Executive™ program educates and certifies individuals and organizations in franchising to the highest standards. The members of the Class of 2024 exemplify these standards, having dedicated countless hours in pursuit of enhancing their professional skills.

Find out more about the program and get your CFE at franchise.org/cfe.

SPECIAL CONTENT
24 FRANCHISING WORLD / April 2024
Debbie Adams, CFE Neighborly Aaron Allison, CFE The Learning Experience Joseph Aloi, CFE TeamLogic IT, Inc. Ayse Aslan, CFE BNI Turkiye Je rey Baldwin, CFE Donatos Pizzeria, LLC Eddie Barrios, CFE The Haagen-Dazs Shoppe Co. Vera Marie H. BautistaKing, CFE Jolibee Foods Corp Nick Baxter, CFE i9 Sports Chris Becraft, CFE FASTSIGNS Sean Bell, CFE Sonosede Inc. Stephanie Benze, CFE AC Inc. Jim Bitticks, CFE Dave’s Hot Chicken Uriah Blum, CFE Vitality Bowls Enterprises, LLC Anya Bokeria, CFE BODY20 Jackie Bondanza, CFE Hounds Town USA May Borbon, CFE Renée Boudakian, CFE Rapid Marketing Strategies Scott Breimhorst, CFE Discover Strength Alessandra Brown, CFE Yum! Brands, Inc. Christopher Brown, CFE KFC US Robert Bruski, CFE Ctrl V Gloria Burbano, CFE Curious Jane Paul Calkins, Jr., CFE International Franchise Association Luke Carlson, CFE Discover Strength Alan Catlett, CFE International Franchise Association Englebert Josef Chua, CFE Potato Corner Kimberly Collier, CFE Ducklings Early Learning Centers Mathew Collins, CFE Snap-on Tools Company, LLC Eriel Cortez, CFE Red Ribbon Bakeshop
Certified Franchise Executive™ Program Class of 2024 April 2024 / FRANCHISING WORLD 25
Nathan Cowan, CFE Mr. Rooter Plumbing, a Neighborly Company

Randy

Darren

John

Gennifer

Lindsey

Art

Kelli

Meghan Delaney, CFE Self Esteem BrandsAnytime Fitness Joe Delatte, CFE Home Clean Heroes Michelle Diaz, CFE BNI Philippines Olivia DiGirolamo, CFE ServiceMinder Tessa Dormann Hood, CFE QC Kinetix Heather Dwight, CFE Primrose School Franchising Company Amy Elder, CFE Papa John’s Patrick Ellis, CFE Regions Bank Wayne Engeron, CFE CareerPlug Richard Estrella, CFE Estrella Insurance Marisa Faunce, CFE Plave Koch PLC Audrey Feci, CFE Lightbridge Academy Roberto Fortus, CFE McDonalds (Golden Arches Dev. Corp) Frank Foti, CFE Ace Handyman Services Kimberly Fuechtmann, CFE Self Esteem Brands Edgar Gabriel, CFE 7-Eleven Gauker, CFE Simply Cabinetry Heather Gerke, CFE QC Kinetix Lou Gervasi, CFE Canadian Franchise Association Dipshikha Ghosh, CFE BNI Global Elli Glytsou, CFE BNI Greece Desislava Grueva, CFE WePlay Music Rowena Guce, CFE Greenwich Ashley Gundlach, CFE British Swim School Cross, CFE Fish Window Cleaning Czarnogorski, CFE WingsUp! Danza, CFE Citrin Cooperman & Co. LLP Davis, CFE Topwings Inc. Davis, CFE The Casual Pint Franchising, Inc. DeCaro, CFE Waters Edge Wineries, Inc. Eric Haberacker, CFE Hand & Stone Massage and Facial Spa Leo Haley III, CFE Fresh Coat Painters Doug Hall, CFE Propelled Brands Natalie Hansen, CFE Ascent Hospitality Management Christian Hathaway, CFE Salons By JC
Certified Franchise Executive™ Program Class of 2024 26 FRANCHISING WORLD / April 2024
Chandler Hayden, CFE Taco John’s International Inc. Cynthia Huet, CFE Francorp Philippines Mike Hysick, CFE Mosquito Joe, a Neighborly Company Madalina Iordache, CFE Bright Pink Agency Danessa Itaya, CFE Bio-One Inc. Lynette James, CFE International Franchise Association Roderick Jasmin, CFE McDonalds (Golden Arches Dev. Corp) Benjamin Javier Gomez, CFE Mr. Electric, a Neighborly company Rey Jimenez, CFE Seaoil Philippines Teresa Johnson, CFE Twist Brands LLC Michael Judkins, CFE Franchise Sidekick Kristen Kiely, CFE The Grounds Guys, a Neighborly Company Jennifer Kier, CFE Byrider Franchising Keith King, CFE Denny’s Sharon King, CFE Mad Science Group, Inc. Gregory Lard, CFE FranNet Ken LeBlanc, CFE PropertyGuys.com Mitchell Lee, CFE Buddy’s Home Furnishings Keith Levenson, CFE ClientTether Jayne Levy, CFE Unity Rd. Robert Lewis, CFE PIRTEK USA & Canada Kristina Lichtenberg, CFE Primrose School Franchising Company Andrea Lilly, CFE Corporate Cleaning Group Jeanine Littrel, CFE International Franchise Association Juan Lopez, CFE Dave’s Hot Chicken Everett Lucas, CFE Buzz Franchise Brands Elyse Lupin, CFE Elysium Marketing Group Trish MacAskill, CFE Akerman LLP Goran Mamula, CFE WingsUp! Tracey Marshall, CFE Massage Envy Franchising Jessica Martin, CFE Payroll Vault Jason Hess, CFE Sign Gypsies Franchising Erik Hoe s, CFE GNC Holdings, LLC Sylvia Horta, CFE Dave’s Hot Chicken Suzanne Howie, CFE Print Three Stephen Hoyle, CFE Alliance Franchise Brands LLC
Certified Franchise Executive™ Program Class of 2024 April 2024 / FRANCHISING WORLD 27
Andrew Hrywnak, CFE Print Three Danielle Mendoza, CFE Playa Bowls Anne Milla, CFE 7-Eleven Beck Miller, CFE LaundroLab, LLC Melanie Moon, CFE Camp Bow Wow Sarah Moore, CFE Grace Morella, CFE Philippine Chamber of Commerce & Industry Haider Murtaza, CFE International Franchise Association Marina Navarro, CFE Dave’s Hot Chicken Grace Ng, CFE Yogurtland Franchising, Inc. Melissa Norton, CFE American Family Care Jared Nypen, CFE Great Clips, Inc. Michael O’Donnell, CFE Dave’s Hot Chicken David Paulson, CFE NIC Services Group LTD Jennifer Peterson, CFE Self Esteem Brands Jenny Phan, CFE Dryer Vent Wizard, a Neighborly Company Kristen Phillips, CFE Primrose School Franchising Company Michelle Pino, CFE McDonalds (Golden Arches Dev. Corp) Andrew Pittman, CFE Neighborly Alyssa Pivirotto, CFE WellBiz Brands, Inc. Doribet Prieto, CFE Dave’s Hot Chicken Judee Quiazon, CFE BNI Philippines Jorge Quintana, CFE SMB Franchise Advisors Lisa Racine, CFE Bojangles Restaurant, Inc Jill Ramos, CFE Elmer’s Restaurants, Inc. Jonathon Martin, CFE Aqua-Tots Swim School Taylor Martin, CFE HomeTeam Inspection Service Angie Masters, CFE Fish Window Cleaning Services, Inc. Riza Masupil, CFE Greenwich Shelly Matteson, CFE Elmer’s Restaurants, Inc. Jessica Medvedev, CFE Discover Strength Trevor Rappleye, CFE FranchiseFilming.com Chrissy Reed, CFE Ace Handyman Services Scott Reilly, CFE Little Caesars Lisa Renz, CFE BNI Global Mandy Rewis, CFE AnswerForce Franchise
Certified Franchise Executive™ Program Class of 2024 28 FRANCHISING WORLD / April 2024
Amy Reynolds, CFE ServiceMaster Brands Crissy Russo, CFE Junk King Franchise Systems Charito Sacayanan, CFE Francorp Philippines Kelly Sale, CFE Primrose School Franchising Company Jose Misael Santos, CFE Philippine Franchise Association Rufi no Santos, CFE Jolibee Foods Corp Cindy Savich, CFE Smoothie King Franchises, Inc. Carol Schillne, CFE Orion Investment Real Estate Marcella Schneider, CFE Authority Brands Julie J Schroeder, CFE Color Me Mine Timothy Sedgwick, CFE Real Property Management, a Neighborly Company Josephine See, CFE World of Nuts Corporation William Sentell, CFE Akerman LLP Elizabeth Shockley, CFE Yum! Brands, Inc. Lea Simmons, CFE International Franchise Association Lauren Smith, CFE International Franchise Association Geraldine Smythe, CFE iKids U Franchise, LLC Marietta Snetsinger, CFE Ascend Franchise Solutions Terri Sniegolski, CFE Creative Colors International, Inc. Kenny Rose, CFE FranShares, Inc. Rebecca Roselada, CFE McDonalds (Golden Arches Dev. Corp) Rosary Roxas, CFE McDonalds (Golden Arches Dev. Corp) Lynlea Rudell, CFE Pool Scouts Noymie Ruiz, CFE Francorp Philippines Anna Russell, CFE International Franchise Association Rachel Southard, CFE ecomaids Sarah Stacy, CFE The Honey Baked Ham Company, LLC Brianna Stevenson, CFE New Creations Mobile Restorations Courtney Stillings, CFE Franchise Business Review Royce Stozki, CFE Lightbridge Academy Kristopher Stuart, CFE Bloomin’ Blinds Fiona Styant, CFE MOLLY MAID Canada Samantha Tacca, CFE Hand & Stone Massage and Facial Spa Jason Theisen, CFE Ziebart International Corporation Tracy Timko, CFE Unity Rd. Joane Tomagan, CFE Philippine Franchise Association
Certified Franchise Executive™ Program Class of 2024 April 2024 / FRANCHISING WORLD 29
Sarah Tracy, CFE Hylant

Kimberly Van Heuvelen, CFE Bloomin’ Brands, Inc.

Russ

Laura Varnell, CFE Primrose School Franchising Company

Giovanni Varron, CFE TGP Pharma Inc.

Stephen J. Velichko, CFE Always An Angel Franchising, Inc.

Joseph D. Villalobos, CFE Dave’s Hot Chicken

Laura Vollmann, CFE Propelled Brands

Brian Woods, CFE Neighborly

Craig Wright, CFE Aqua-Tots Swim School

James Cecil Yayen, CFE Haim Chicken

Jennifer Yiangou, CFE Self Esteem Brands

Jiahui (Jennifer) Zhang, CFE Jones & Co.

Photos Unavailable

Anna Conant, CFE Self Esteem Brands

Saul Concepcion, CFE The Haagen-Dazs Shoppe Co.

Amy Crist, CFE Wild Birds Unlimited, Inc.

David Denker, CFE The Vitamin Shoppe

Travis Garrett, CFE Bu alo Wings & Rings, LLC

Mohsin Ghauri, CFE MTY Group

Eric Johnson, CFE

Rafal Kieliszek, CFE National Mattress Canada

Sydni Konohia, CFE International Franchise Association

Mike Kuberski, CFE MOLLY MAID Canada

Jason Losco, CFE WellBiz Brands, Inc.

Sara McCue, CFE Lightbridge Academy

Bett Mickels, CFE University of Louisville College of Business

Bill Murray, CFE 10 Fitness

Jim Roark, CFE Neighborly

Susan Roman, CFE Lightbridge Academy

Find out more about the program and get your CFE at franchise.org/cfe.

Renee Sica, CFE Lightbridge Academy

Samantha Thomason, CFE Self Esteem Brands

Philip White, CFE Neighborly

Garrett Williams, CFE Honest1 Auto Care

Richard Zimmer, CFE Savvy Sliders LLC

Ward, CFE Crystal Ware, CFE Location3 William Watson, CFE TBC Corporation Crystal Wells, CFE The Habit Burger Grill Thomas Wong, CFE Kevito Group Noelle Woodhead, CFE The Dog Wizard
30 FRANCHISING WORLD / April 2024
Certified Franchise Executive™ Program Class of 2024

PART-TIME VS FULL-TIME EMPLOYEES: WHAT TO CONSIDER WHEN HIRING

The difference between part-time vs full-time employment often goes beyond the number of hours worked each week. An updated job analysis and an understanding of the job-related impacts of employing a full- or parttime employee can help you allocate responsibilities appropriately among your staff.

What Are the Differences

Between a Part-Time vs FullTime Employee?

The distinction between a part-time versus a full-time employee is generally made by the employer, using job roles and expectations, along with ensuring compliance with applicable federal, state and local laws and regulations.

Hours & Benefits

To help determine whether a position should be part-time vs. full-time, consider what type of work is being conducted and how long it takes to fulfill the job requirements.

Federal, state, or local regulations may dictate certain requirements for part-time workers. Eligibility for most fringe benefits, including vacation, can be determined by the employer. Companies should look at the job market and determine which benefits for part-time employees are most desired and cost-beneficial.

Health Insurance

Under the ACA, applicable large employers (ALE) must

offer minimum essential coverage to at least 95% of their full-time employees and their dependents or risk a potential assessment if at least one fulltime employee receives a premium tax credit. This tax credit assists with the cost of health insurance purchased through a Health Insurance Marketplace. Even if the offer-of-coverage threshold is met, the ALE is at risk of a second type of assessment if it does not offer affordable coverage that meets minimum value to its full-time employees, and one or more of these employees receives a premium tax credit.

An ALE under the ACA is defined as an entity with an average of at least 50 or more full-time employees during the prior calendar year, including full-time equivalent employees. The ACA definition of full-time is an average of 30 hours or more per week (or 130 hours per month), so it’s important to examine your current employee base for compliance purposes.

Smaller employers are not required to offer health insurance under the ACA, but it’s up to the individual company to weigh the costs and benefits of offering health insurance to employees.

32 FRANCHISING WORLD / April 2024
ADVERTISEMENT

Taxes

Keep in mind that payroll taxes must be withheld for all employees, regardless of their full-time or part-time status. Any required state or local employment taxes must also be withheld, and workers’ compensation laws also apply to part-time workers.

Laws and Legal Differences

Classification of part-time and full-time employees is ultimately an employer’s decision, except where dictated under specific employment laws. An ALE must offer fulltime employees affordable and adequate coverage or risk an assessment if at least one full-time employee receives a premium tax credit.

Part-time workers who are on the job for at least 1,000 hours per year are also covered by ERISA, which gives them eligibility to participate in company-sponsored retirement plans.

Documentation is essential. Defining categories of employment helps to ensure that internal policies are applied consistently throughout the company and can help avoid future legal action.

Offering Part-Time vs FullTime Employment: Pros and Cons

Part-Time

Pros:

Increases the talent pool — Expanding hiring to include more part-time positions

Fulfills certain hiring needs — may attract job seekers with unique skills who cannot or do not want to work full-time.

Cost savings — Lower compensation and tax costs due to fewer hours and potential benefits savings.

Work efficiency — May be more efficient if job responsibilities can be met on a shortened schedule.

Cons: Time constraints — May not be enough time to fully complete job responsibilities on a timely basis. Also, deadlines may need to adjust.

Scheduling logistics — An additional element that should be integrated into a time and attendance system and tracked alongside full-time schedules.

Inefficient cost savings — May still be entitled to benefits such as health insurance.

Recruiting advantages — May be more attractive for those seeking career progression and development

Ease of scheduling — Fewer employees to manage.

Cons:

Costs — Higher financial investment in workers’ compensation to cover additional hours and benefits, including overtime hours.

Range of skills — Some highly skilled individuals may only want to work on a part-time basis, limiting company options.

If you are interested in how to hire smarter with Paychex’s HR recruiting and hiring software, contact a dedicated rep by clicking or scanning the QR code!

paychex.com/franchise

Full-Time

Pros:

Commitment — May show a greater commitment to the company.

April 2024 / FRANCHISING WORLD 33
ADVERTISEMENT

8 HIGHLIGHTS FROM THE 2024 IFA ANNUAL CONVENTION

Find Your “Rabbit”

Famed coach and football star Deion Sanders said find what will motivate you on a consistent basis. That’s what will drive you toward success.

Lines We Won’t Forget

“Meet people where they stand.” Experts like Kelli Valade, CEO of Denny’s Corporation, shared tips on big-picture solutions, financial metrics and unit success.

Tell Your Story

If you don’t tell your story, no one else will. New York Times best-selling author Don Yaeger taught us how to captivate an audience, increase your influence and build deeper relationships.

Protect the Model

IFA showed the power of its members with a big turnout and active engagement — contributions that will benefit generations to come. It’s the same back home, where franchising is important to both the community and the next generation of business leaders.

United Not Divided

U.S. Sen. Joe Manchin (West Virginia) brought his across-the-aisle style to the franchise industry to remind people of the strength that comes in working together instead of against each other.

Franchise Smarter

There’s power in the business model, said IFA President and CEO Matthew Haller and incoming chair Steve Hockett. It’s critical that we work together to preserve and strengthen it.

Franchising Gives Back

As a community, we packed over 55,000 meals for families in need during the IFA Annual Convention with Meals of Hope.

Play to Win in 2025

IFA’s 2024 Annual Convention had it all: fine dining, big names and learning for everyone. Next year we’ll do it again in Las Vegas, NV — February 10-13. You better be there!

IFA ANNUAL FEBRUARY 17–20 PHOENIX, AZ
2024
1 2 3
4 5 6 7 8
Kelli Valade, Speaker
34 FRANCHISING WORLD / April 2024
Deion Sanders, Keynote Speaker Sen. Joe Manchin, Speaker
April 2024 / FRANCHISING WORLD 35
Steve Hockett, IFA Chair

RESTAURANTS OF THE FUTURE ARE TAKING A NON-TRADITIONAL APPROACH

Heightened interest rates, real estate costs and the rising price of goods are combined to make the traditional brick-and-mortar franchise experience less attainable for otherwise interested investors.

36 FRANCHISING WORLD / April 2024 FEATURE

But far from tucking their tails and accepting defeat, franchisors in the restaurant industry are doing what they know how to do best — adapt to meet a new era of operations.

Some of the country’s most beloved and even lesser-known QSR franchise concepts are increasingly targeting their growth goals through non-traditional real estate options. These options can include setting up shop in casinos, sports stadiums, military bases, via ghost kitchens, in free-standing drive-through facilities, and/or in brick-and-mortar buildings that dramatically reduce the typical square footage historically required by particular brands for “proper” functionality.

Some of the country’s most beloved and even lesser-known QSR franchise concepts are increasingly targeting their growth goals through non-traditional real estate options.”

The intent behind these non-traditional real estate models is to reduce franchisees’ financial barriers and risks when signing on to join a brand without sacrificing customer experience. But there are still some facts and figures that any interested franchisee should consider.

For the long-term health and growth of any restaurant company, what must first be established is a dependable and predictable model for ROI that can help provide clarity to franchisees on what the pathway to profitability looks like. Such a model should consider three key elements, regardless of what the operating venue may look like:

Cost of Opening: Consider all capital expenses involved in opening the business. A cash-on-cash ROI should optimally be 30 percent or better to drive growth for any franchise location. We continually drive down costs as we accelerate our growth in concert with our internal teams and external partners.

1

2

Prime Operating Expenses: Include the cost of goods sold, labor, occupancy and finance costs and the sort. Oftentimes, brands want to see occupancy costs well below 10 percent. However, when interest rates are increasing, as they have this past year, it will drive total occupancy

costs up, well above the mark most brands prefer, making it more challenging to achieve the desired ROI.

Desired Revenue: Profits should typically be 2X the capital investment, assuming all other operating, occupancy and financing costs are aligned to achieve an ROI. This will better position operators to reach the 30 percent cash-on-cash ROI they should be looking to get.

3

For the long-term health and growth of any restaurant company, what must first be established is a dependable and predictable model for ROI that can help provide clarity to franchisees on what the pathway to profitability looks like.”

Restaurant operators have had to innovate continually to support their desired ROI model. In the past, this has included creating fast-casual versions of full-service brands, introducing robotics and back-ofhouse automation, and, indeed, shrinking down the required square footage to optimize revenue per square foot. And since one of the fastest-growing segments

April 2024 / FRANCHISING WORLD 37

of the restaurant industry is based on off-premises consumption of the product, I would expect these trends not only to continue but also likely accelerate.

“ Brands should continually refine their design and operating process to optimize efficiency from an investment and operating expense standpoint while maximizing revenue opportunities.”

marketing, and supply chain. The result is a restaurant that can tick and hum in any format, regardless of how consumers interact with the brand.

Competition within the QSR space grows more pronounced with each passing year. Various restaurant concepts will crack and fail under that pressure, finding it too difficult to stand out in a field where hundreds, if not thousands, of well-established fan favorites are already dominating the industry with first-in-class franchise opportunities. That’s where the value of non-traditional restaurant footprints shines. Some may view the trend as an unwelcome shift from the norm, while others will see it as an equalizer, a method by which many brands can expand more efficiently and cost-effectively than they may have previously thought possible.

INTERNATIONAL OPPORTUNITIES AVAILABLE: INTERNATIONAL OPPORTUNITIES AVAILABLE: (702) 522-2505 franchising@capriottis.com www.wingzonefranchise.com CURRENTLY OPERATING IN: United States | Panama | Philippines | India | Malaysia 38 FRANCHISING WORLD / April 2024

Our franchise expos provide the perfect platform to explore a variety of franchise concepts across multiple industries, all under one roof.

Meet face-to-face with franchisors, attend informative seminars, and network with industry experts to guide you to your next business move!

Join us to take the next step toward turning your entrepreneurial dreams into reality.

SCAN HERE! FT. LAUDERDALE, FL SEPT 6-7, 2024 AUSTIN, TX NOV 15-16, 2024
REGISTER WITH CODE “WP ” www.FranchiseExpo.com
DISCOVER YOUR NEXT BIG FRANCHISE OPPORTUNITY

GOING THE DISTANCE WITH FRANCHISING

40 FRANCHISING WORLD / April 2024 FEATURE
Four lessons learned from the CEO and Founder of Perspire Sauna Studio on Franchise Development

Ilace up my running shoes and hit the pavement for a Sunday morning run. Well, at my speed it’s honestly more of a long-distance jog. I’ve been a “middle of the pack” distance runner for most of my life, primarily because I always think best when I’m running. In the first few strides of the run, I can’t help but draw the parallel between the endurance required in distance running and my journey in franchise development. Perspire Sauna Studio’s venture into franchising has been a marathon, filled with lessons, challenges and joyful moments of progress. Here’s what the miles so far have taught us:

LESSON 1

Pace yourself.

In the world of franchise development, patience is not just a virtue; it’s a necessity. Much like training for a marathon, building a successful franchise network requires consistent effort and a focus on long-term goals. In the past, we have made the mistake of trying to solve every need of the business as they occur. In reality, there is a finite number of new systems, processes, products or projects that can be implemented by the HQ and the franchisees each quarter. The discipline lies within choosing the most impactful areas to work on and focusing the effort there. Priorities added or reshuffled in haste can derail progress. For our HQ Team, EOS (Entrepreneurial Operating System) helped us to evolve over time and learn to approach each objective with committed focus, understanding that sustainable growth takes time and dedication and should not be rushed.

By fostering a dedication to improvement, we ensure that every step forward brings us closer to our brand’s vision of a healthier and happier world.”

LESSON 2

The

goal is not a destination; it’s improvement.

Just like many lifelong distance runners know, there is always another hill to climb. This philosophy resonates deeply with our approach to franchising. Challenges are inevitable in any business, and looking within is really hard when there are changing external factors like economic concerns, government regulations, competition, etc. But since those things we have no control over we limit how much time we spend focusing on them, and choose to make changes that positively affect the people within the four walls of our studios (and there is always something that can use upgrading). By fostering a dedication to improvement, we ensure that every step forward brings us closer to our brand’s vision of a healthier and happier world.

April 2024 / FRANCHISING WORLD 41

LESSON 3

Growing together is better than growing alone.

Just as runners draw energy from the camaraderie of running beside fellow athletes and cheering spectators, franchisors thrive on the collective efforts of their franchisees and support network. Training and supporting franchisees who love their business has been the most impactful growth strategy for our brand, and also the most rewarding personally. By tapping into the potential of a diverse group of entrepreneurs in areas all over the country, we have not only seen the number of locations grow but have benefitted from the diverse perspectives and backgrounds of our franchisees.

Just as the most challenging segments of a long-distance run test our endurance and resilience, the toughest moments in franchising offer opportunities for growth and learning.”

We also set up a Franchise Advisory Council early into our franchising expansion so that we could have an organized feedback loop and work directly with a focused council of franchises on solving top issues. Additionally, the franchisees are routinely checking in on each other, sharing best practices and helping each other grow their business. Creating these spaces and this kind of culture is what franchising is all about. We’ve witnessed firsthand the power of shared knowledge, resources and experiences in propelling our brand forward.

LESSON 4

Learn to appreciate the challenges as much as the achievements.

Throughout our experience in franchise development, we’ve come to understand that adversity holds invaluable lessons. Just as the most challenging segments of a long-distance run test our endurance and resilience, the toughest moments in franchising offer opportunities for growth and learning. Embracing these challenges with a mindset of neutral curiosity allows us to overcome

and improve. To help take the edge off of hard times and to dial back expectations during good times, we have taken a stoic approach to good or bad news.

Katy Fetters, our VP of Experience, has been with me since 2012 at Perspire. Together we have seen a lot. Whenever something BIG happens, we don’t celebrate or doomsday, we just inevitably shrug and say to each other “who can say.” That is our stoic code for “time will tell” if that event is positive or negative in the long run. Over the years it has not been the smooth stretches but the rocky paths that shape us into stronger, more capable leaders. By remaining agile in how we handle challenges and opportunities, we can turn obstacles into opportunities for growth and innovation — traits needed for any franchise brand.

Both the distance running and franchising journeys require long-term patience, a commitment toward forward momentum, a collaborative nature and the unwavering belief that you will be able to conquer the challenge in front of you. As we continue to stride forward in our franchising endeavors, we are grateful for these lessons and the many others in the franchising community that have helped us along the way. Together, we’re not just building a franchise system; we’re creating a world where franchisees can achieve the entrepreneurial lifestyle of their dreams through service to others, one step at a time.

Lee Braun is the founder and CEO of Perspire Sauna Studio. For more information about IFA franchisor member Perspire Sauna Studio, please visit franchise.org/franchise-opportunities/ perspire-sauna-studio

42 FRANCHISING WORLD / April 2024

LOOKING FOR QUALITY LEAD GENERATION?

Maximize your brand's potential at Franchise Expo South and Franchise Expo Austin –as part of your marketing strategies in today's competitive market. These expos are your opportunity to connect with qualified franchisees looking to develop in the Fort Lauderdale and Austin region!

“ Franchise growth in the Southern U.S. continues to outpace the rest of the U.S.”
- 2024 Economic Outlook
RESERVE YOUR BOOTH To learn more about exhibiting, email Dana.Stein@comexposium.com or call 201-881-1654 www.FranchiseExpo.com SCAN HERE! AUSTIN, TX NOV 15-16, 2024 FT. LAUDERDALE, FL SEPT 6-7, 2024

THREE TIPS TO BUILDING A STRONG INFRASTRUCTURE TO FUEL FRANCHISE GROWTH

44 FRANCHISING WORLD / April 2024 FEATURE
Ensuring the lasting success and growth of your business begins with a forward-thinking strategy that prioritizes longevity at its core.

Akey way for brands to achieve longevity is through building strong infrastructure. With the right foundation in place, your business can remain relevant among numerous demographics and generations. Taking this a step further, quality infrastructure creates a blueprint that encourages your business to embrace innovation during changing times.

A strong infrastructure goes far beyond a brand’s brick-and-mortar. It extends into the integration of technology, day-to-day operations, and the cultivation of a brand experience. As your business navigates the complexities of diverse markets and ever-changing consumer preferences, your brand’s infrastructure enables your ability to adapt to challenges and seize growth opportunities.

April 2024 / FRANCHISING WORLD 45

At Bad Ass Coffee of Hawaii, our commitment to investing in our infrastructure has helped our franchisees feel supported long before they open their doors. From refined operational processes to supportive technology and tools, the infrastructure we’ve built has catapulted our brand into a new era of success. Taking the time to build a strong infrastructure can spur franchise development and help build a loyal customer base. Here are three best practices to help you build a solid foundation that will lay the groundwork for long-term success.

Unlock Market Potential by Recognizing Prime Real Estate

Having an eye for identifying prime real estate serves as the cornerstone for successful franchise expansion. This process entails intense market analysis and strategic demographic targeting. By delving into key markets and understanding the nuances of specific audiences, a business can fine-tune its real estate scouting to help franchisees pick the right spot to meet the needs and preferences of that local community.

Living in today’s rapidly evolving digital era, it is imperative to make business operations compatible with the latest technology.”

While selecting a prime location is key, you also need to embrace a diverse range of build options and flexible store models that can be customized to fit within each market. For instance, in the COVID era, drive-thrus emerged as essential components for brick-and-mortar locations in the quick service restaurant industry. In order to adapt to changing consumer preferences, Bad Ass Coffee of Hawaii introduced double drive-thrus as a new store model option – not to replace the traditional cafe model, but to supplement a portfolio more convenient store models based on the diverse demands of different markets.

The key to unlocking prime market potential is to understand that not all locations and consumer preferences are created equal. Important for a brand’s success is matching the site analytics and customer demographics with the right cafe type and convenience model to create a network of cafes that meet a wide range of needs in numerous markets.

Tailor to Technology for Operational Excellence

Living in today’s rapidly evolving digital era, it is imperative to make business operations compatible with the latest technology. Staying ahead of technological trends is not just advantageous — it’s essential for maintaining competitiveness and efficiency. A commitment to embracing technology is a guiding principle for shaping the future of a business’ infrastructure.

When I first joined Bad Ass Coffee of Hawaii in 2019, one of our initial priorities was to enhance our point-of-sale system so it seamlessly partnered with mobile and loyalty apps for customer convenience in mind. This enhancement also included back-office systems that were designed to leverage data to quickly identify operational opportunities and create efficiencies for staffing, reporting and management. The end goal was to boost productivity and lay the groundwork for further technological integrations. The impact that comes from fully embracing and leveraging new technology goes beyond internal processes. Implementing a digital online ordering system, for example, not only streamlines operations but also caters to changing consumer preferences for convenience.

46 FRANCHISING WORLD / April 2024

In essence, tailoring to technology can help your brand meet and anticipate consumer trends. It positions your brand for longevity through fostering consistent customer satisfaction. As technology continues to evolve, the commitment to embracing these changes positions businesses like Bad Ass Coffee of Hawaii at the forefront, setting the stage for continued success and resilience in any market landscape.

Prioritize Your Product and Customer Experience

Product innovation is a driving force for customer engagement and revenue growth. It might not be the first thing that comes to mind when thinking about infrastructure, but quality products and services are the backbone of any business. However, it’s not just about selling a product; it’s about creating an experience that resonates with consumers.

Beyond the traditional revenue stream from product sales, branded merchandise serves as a multi-purpose tool that unlocks new avenues for growth and drives brand awareness.”

Creating innovative product offerings is a dynamic strategy that can play into customers’ interests and increase their ever-changing preferences. The use of limited-time offerings is a powerful approach leveraged by many in the QSR space. At Bad Ass Coffee of Hawaii, we’ve captivated our audience with seasonal LTOs while also pioneering new territories, as demonstrated by the introduction of our Mana energy drink line. These strategies not only underscore our commitment to innovation and our versatility in crowded markets, but also keep our customers excited for what’s next — knowing that their current favorites have the potential to become permanent fixtures on our menu.

While the allure of seasonal offerings and new product platforms is undeniable, there is also immense untapped potential for revenue growth with branded retail offerings. Beyond the traditional revenue stream from product sales, branded merchandise serves as a multi-purpose tool that unlocks new avenues for growth and drives

brand awareness. This also adds to the consumer’s overall experience as they’re able to enjoy and interact with the brand outside the four walls of your store. The planning and marketing of merchandise can be a game-changer when it comes to increasing sales and fostering a lasting impression between your brand and consumers.

It’s crucial to establish your brand as both an experience and product provider that has the ability to break through the noise of the competition.

All-in-all, the key to long-lasting durability for your brand is the development of a rock-solid infrastructure. With today’s dynamic marketplace and ever-evolving consumer needs, establishing a robust infrastructure is pivotal for longevity.

April 2024 / FRANCHISING WORLD 47
Scott Snyder is the CEO of Bad Ass Coffee of Hawaii. For more information about IFA franchisor member Bad Ass Coffee of Hawaii, please visit franchise.org/franchise-opportunities/ bad-ass-coffee-of-hawaii.

BUILDING A FRANCHISE FROM THE GROUND UP

48 FRANCHISING WORLD / April 2024 FEATURE

Leadership Tips for Emerging Franchisors

Even though I’ve been running a tree and plant care business since 2005, in the franchising world, I’m a rookie. When you’re building a new franchise from the ground up, there’s a lot of learning, and there are a few things I wish I’d known when I started this franchising journey.

Biggest Lesson Learned

The people who have worked with you up to this point to build your business are not franchise development professionals, and you need that expertise to do things right the first time. Working with people who know franchising will save you time and money because you won’t make nearly as many mistakes. My advice? Bite the bullet. Spend the money. Get the professionals. BUT be ready to pivot if you find yourself in the wrong partnership.

I started working when I was just 13 years old, and I started with a tree crew when I was 17.”

Secure Your Advisors

If you’ve spent any time researching the franchising process, you realize how much you don’t know. Building Joshua Tree Experts out of my garage in 2005 was nothing like building the franchise we started working on in 2021.

The best decision I made was hiring a first-rate franchise attorney. Their knowledge about operating in the franchising space is unparalleled. They are reliable and dependable, and each team member within the group has a role and responsibility. We know exactly who to go to when we need answers, and we have complete trust that they always operate with our best interest in mind.

Looking back, I should have immediately partnered with a marketing company that specialized in franchise development. It would have saved us a lot of work revamping our operations manual and the franchise disclosure document (FDD) once we understood what kind of marketing was needed.

April 2024 / FRANCHISING WORLD 49

Find the Right Consultants

Much of my business acumen came from reading and watching how other people ran their businesses. However, I really didn’t know the ins and outs of franchising, so I knew I needed some expertise to guide me, which led me to broker groups and consultants.

Things might not always go the way you plan them, but you always learn something.”

When I found the right fit for us, they were invaluable in helping build our brand. However, it took a while for me to find the right people. Not every consultant or broker wants to work with an emerging brand, and I should have focused more on the people in this area who had experience with emerging franchisors. There’s a difference between an up-and-coming brand and one that’s been in

operation for a decade or two and looking to grow. The right insight makes for a strong franchise foundation.

Vendor Relationships 101

An exciting and challenging aspect of franchise development for me was concerning vendors. Some of our vendors had to change as we grew our business from two guys to a 60-person crew. In franchising, you may be seeking vendors nationwide for potentially hundreds or thousands of people, and that takes a special kind of expertise.

When I began working with a franchising expert who knew how to leverage vendor partnerships, we advanced in franchise development much more quickly. Now, we have those vital relationships that are not only high value to us as the franchisor but also to each of our franchisees as they learn each step in the process.

Building a Culture

I started working when I was just 13 years old, and I started with a tree crew when I was 17. I was absorbing lessons about business operations and culture-building without fully realizing it. I paid attention to how people interacted and how they came up with solutions whenever challenges arose.

Even though traditional school was not my strong suit — I graduated almost last in my class — I am proof that learning outside the classroom can also lead to success. I obtained my arborist license, pesticide license and other industry certifications. I read every business book I could get my hands on and took management roles to build my knowledge.

I am a people person, and building authentic relationships comes naturally to me. Business is based on relationships, and franchising is even more so because you’re helping other people build their own businesses and develop their relationships, too. That’s one of the things that excites me most as I build this next phase of my company with other entrepreneurs.

Franchisees need to know you have their backs, and one of the ways we’ve done that is with our unique business model, which offers a 3-in-1 revenue stream for owners. Recurring revenue is important. Client retention is important. Competence is important. These things are challenges for many in our industry, and it’s where we excel because of our model and our focus on building strong relationships.

It’s ok to be picky when defining your culture, especially when you’re setting the standard. Package the things you value most into your franchise system, and you’ll find yourself standing apart from the rest.

50 FRANCHISING WORLD / April 2024

Remember Where You Came From

Providing strong franchise leadership means embracing all your experiences and using what you’ve learned to propel you forward. When we started building our franchise, we had a lot of new experiences. It was a business based on what we had always done but a model based on nothing we had ever done! Nothing we learned ever went to waste, and nothing we did ever went against our values. Things might not always go the way you plan them, but you always learn something. At the end of the day, learning IS leadership. And in franchising, that’s what will help you create a roadmap for success.

Protect Your Brand
o er comprehensive insurance solutions and risk management services to protect your network and franchisees from risk. The 3P Commitment Protect Your Network Care for the People in Your Network Grow Your Network’sProfit April 2024 / FRANCHISING WORLD 51
Joshua Malik is the founder and CEO of Joshua Tree Experts and has been in the tree care industry for more than three decades. For more information about IFA franchisor member Joshua Tree Experts, please visit franchise.org/franchiseopportunities/joshua-tree-experts
We

LEADERSHIP CHALLENGES FOR EMERGING FRANCHISORS

Ideas from the field and how to navigate them.

Leading any startup business is hard. Really hard. Over 90 percent of startup businesses fail to reach their third birthday, why? Because creating something of unique value — with minimal resources and the dearth of experience in most startup teams — is not an obvious pathway to success. Startup leadership often feels like a SEAL patrol gone bad — a long uphill slog, in the black of night, under a driving rain, against the wind, with a 100-pound rucksack on your back, neck deep in thorny vines and poisonous vipers, with a cliff to each side. Much of the time, it feels also like the compass is broken because the list of unknowns vastly exceeds the list of knowns. Leading an early-stage venture is always a heavy lift.

The success of the franchisor is entirely dependent upon the success of its franchisees over whom the franchisor has relatively little direct control but can mainly hope to influence through preparation and persuasion.”

This is true irrespective of industry, business model, product, or service. Most early-stage ventures face a similar set of leadership challenges: sharply constrained resources, inexperienced staff members, lack of established processes, and an unmanageable mountain of tasks to be resolved each day. Add competition into the mix and you’ve got the perfect storm of challenges to overcome. Franchised

52 FRANCHISING WORLD / April 2024 FEATURE

startups are advantageous in many respects because, at least in theory, the franchisor has already “navigated the storm,” absorbed the bumps and bruises, and codified those learnings into processes and procedures that can be provided to new franchisees as an operator’s playbook.

In practice, however, the reality may be somewhat different. Oftentimes, early-stage franchisors are also their company’s “first franchisee” — meaning that they are running and growing the corporately owned stores that define the model for their would-be franchisees to emulate, while at the same time preparing all the infrastructure to scale the concept via franchise sales. This dilution of focus can easily come to resemble the old adage about the perils of stuffing “twenty pounds of (stuff) in a ten-pound sock.” And that lack of focus can quickly come to jeopardize the viability of the entire venture.

The most important asset in any operation is a strong, well-aligned, properly trained team.”

Successful corporate stores, after all, are the primary sales asset enabling any fledgling franchisor to persuade other prospective franchise owners to invest in this business rather than another alternative. Your Item 19 depends upon them. So not only does the start-up franchisor need to operate an exemplary corporate business, easier to say than to do, but it also needs to bottle up the “secret sauce” in a way that can be successfully translated to incoming franchisees who buy into the model. This means preparing all the franchise marketing and sales materials; all the educational systems, processes, materials; and all the educational infrastructure required to support inbound franchisees — all while staying focused on the core corporate business at the same time. It is a tightrope that is not easily navigated.

On top of these challenges, early franchise businesses involve still one more layer of complexity. The growth of their brand is largely dependent upon the ability and commitment of others (ie. the incoming franchisees) to execute the franchise playbook with the same faith, diligence, and tenacity as the franchisor. The success of the franchisor is entirely dependent upon the success of its franchisees over whom the franchisor has relatively little direct control but can mainly hope to influence through preparation and persuasion.

While there are few methods to guarantee success on this tenuous mission, there are some basic SEAL Team leadership principles that emerging franchisors may find useful to consider prior to commencing the sale of licenses to franchise their concept.

• The most important asset in any operation is a strong, well-aligned, properly trained team. The time to figure out that one’s team isn’t mission-ready is before launching the operation, not afterward. This is doubly true when franchising one’s business concept.

• Keep your front-site focus. The most critical step in becoming a viable franchisor is demonstrating consistent success as the company’s first “franchisee”. Never lose focus on that reality and prioritize your energies and assets accordingly.

• Lead from the front and lead by example. If your corporate stores aren’t performing as planned, your franchisees’ stores won’t either. Make it your top priority to demonstrate the success of your business model in the stores you run.

• Remember the 7 P’s (proper prior planning prevents piss poor performance). If the systems, processes, equipment, and training aren’t complete, postpone the launch. Deficiencies don’t get better with age and problems compound as complexity increases.

• Let the troops eat first. Once you sell your first franchise, that franchisee must become the beneficiary of everything you have to give, the center of your universe. Good leaders eat last.

• Give the credit, horde the blame. When things don’t go as planned, look in the mirror, own the results, and take immediate steps to fix what’s broken. Casting blame only creates resentment and misalignment. Own the results and your people will respect you for it, even if the blame wasn’t truly yours.

Despite the many challenges, the opportunity presented by successful franchise models make these risks well worth taking. With the proper foundation and preparation, franchise structures can scale at a pace that company-owned chains rarely achieve. And franchise ownership democratizes the purest embodiment of the entrepreneurial American Dream.

Randy Hetrick is a former Navy SEAL, Stanford MBA, founder & chairman of TR and founder & CEO of OutFit Training. For more information about IFA franchisor member OutFit Training, please visit franchise.org/franchise-opportunities/myoutfit

April 2024 / FRANCHISING WORLD 53

HOME SERVICE FRANCHISE INDUSTRY OUTLOOK FOR 2024

As the housing sector witnessed unprecedented growth during the pandemic, the franchised home services industry emerged as a pivotal player, catering to the diverse needs of homeowners.

With more than 65 percent of the American population residing as homeowners in 2023, the natural need for upkeep, maintenance and repair of homes has driven the growth of the home services total addressable market (TAM) size to surpass $657 billion with an approximate growth rate of 10 percent in 2023, according to KPMG’s Home Services Industry Update Report.

The demand for home services has been strong and will continue to remain as it serves a market with a consistent and permanent need that attracts repeat customers. The franchised home services industry has also proven to be recession proof as evidenced by the upward trend in its average unit revenues, growing at a CAGR of 9.6 percent from 2019 to 2022, showcasing how the brands in this franchising category not only survived but thrived through the pandemic years and beyond.

The brands in the home services franchising landscape can be categorized into three sub-segments – home maintenance, home improvement and home restoration/emergency repair. Home maintenance businesses provide services needed for everyday living such as housekeeping and cleaning, plumbing

and lawn care. Home improvement franchise services can range from small smart home appliance installations to big budget bathroom remodels or sunroom extensions. The home restoration franchises come to the rescue of homeowners who need emergency repairs due to damage caused by unforeseen fires or severe weather. In 2023, most homeowners prioritized basic home maintenance projects that included regular lawn maintenance/landscaping and gutter cleaning over other expensive home services and improvements due to inflation induced high costs affecting the daily lifestyle of consumers.

According to the IFA 2024 Franchise Economic Outlook report, the number of home-based services franchises will reach approximately 81,000 by 2024, representing a growth rate of 2 percent. Franchise employment in the industry is projected to increase by a corresponding 2 percent to 315,000 jobs. Franchise output in the industry is expected to grow faster than in 2023, driven by improvements in the housing market, with an expected growth rate of 4.6 percent to a total of $59.8

Average Unit Revenue Growth (Health Services Industry)

CAGR: 9.6%

INDUSTRY SPOTLIGHT: Home Services & Home-Based
$600,000 $400,000
2019 2020 2021 2022
$1,400,000 $1,200,000 $1,000,000 $800,000
$200,000 $0
Source: FRANdata
54 FRANCHISING WORLD / April 2024

billion. These positive projections for the franchised home services industry are driven by the following factors:

Rise in home prices, values and equity: Rising home prices have increased home equity rates, prompting homeowners to reinvest in their homes and improve their living spaces. Additionally, homeowners looking to sell benefit from investing in home improvement and maintenance services, as it enhances the overall value of the property and leads to higher asking prices.

1

are encouraged to renovate and enhance their living spaces.

5

High interest rates:

2

Mortgage rates reached record highs in 2023 and are currently hovering around the 6-7 percent range, slowing down home buying activity. Some homeowners who are locked in comparatively lower interest rates are forced to reconsider selling their homes to buy and upscale to new properties and instead choose to upgrade their current residences by investing in home improvement and remodeling services.

Projected increase in home sales in 2024: The housing market, which was largely inactive in 2023 due to high interest rates, low supply, and low affordability, is expected to rebound with the expected federal cuts in mid-2024. The National Association of Realtors (NAR) predicts a 13.5 percent increase in existing home sales to 4.7 million in 2024, which is expected to drive demand for home services, as unforeseen repairs often occur within the first year of ownership.

3

Rising dual income households: In 2023, approximately 53.3 percent of U.S. households were dual-income, meaning both partners/spouses were working, according to a 2024 Gitnux market data report. With more disposable income and purchasing power, homeowners are more likely to spend on home renovations and upgrades. In addition, with more adults in the family employed, residents have less time to spend on maintenance chores. The trend of more working millennials valuing their time as a resource is also a factor in their willingness to avail do-it-for-me (DIFM) home maintenance and repair services instead of indulging in do-ityourself (DIY) projects themselves.

6

Environmental and energy efficiency awareness:

Sustainability is a significant concern for modern consumers looking for eco-friendly solutions, energy-efficient installations, and sustainable materials. Homeowners are increasingly inclined to install/upgrade solar energy installations, energy-efficient HVAC systems, and other greenhouse upgrades since these also lead to lower monthly energy costs.

7

4

Aging housing infrastructure: According to KPMG’s Home Services Industry Update Report, the average age of houses has continued to increase to 47 years. Aging properties require more maintenance and upkeep as residents

Technology: Technology and AI are changing how customers connect to home service franchises with the rapid increase in online and mobile app-based booking services for home services. AI-driven innovations, including voice and vision recognition, help homeowners simply click on pictures or describe household repairs and get quick quotes. Search engine optimization through platforms such as Amazon Home Services and Google’s Local Services makes it easier for consumers and increases efficiency by focusing on response time, pricing, and

product/service reviews. From offering smart home integration services and products to virtual consultations and designs, embracing technological advancements is crucial for franchises in the home services industry to stay competitive and improve upon their service quality and customer experience.

Private equity investment:

8

The industry has attracted significant private equity investment in recent years. As the service offerings of individual franchised businesses in the sector are limited and fragmented, consolidations of different concepts to form platform companies are attracting increasing interest from investors. For instance, Empower Brands, backed by private equity firm MidOcean Partners, was formed in 2022 after a merger of Lynx Franchising and Outdoor Living Brands, and has since acquired four additional home services brands in 2023, including Canopy Lawn Care, Koala Insulation, Wallaby Windows, and Bumble Roofing. Another example is Authority Brands, which was born in 2017, received an investment from Apax Partners in 2018, and has grown from two home service brands to 16 today, with Screenmobile and Weed Pro (now rebranded as Lawn Squad) joining the platform in 2023.

In conclusion, in spite of an anticipated slower GDP amidst a subdued macroeconomic environment in 2024, there remain ample opportunities for franchises in the vast and diverse home services industry, known for their recession resistant business models, to expand and thrive.

Khadija Cochinwala is a research analyst at FRANdata. She is part of a team of analysts who measure, track, and analyze franchisor performance. Khadija is committed to producing quality franchise insights that enable strategic decision making and propelling business growth. For more information about IFA supplier member FRANdata, please visit franchise.org/suppliers/frandata

April 2024 / FRANCHISING WORLD 55

COMBINE THE BENEFITS OF RISING CONSUMER DEMAND WITH THE EFFICIENCIES OF SEASONAL FRANCHISE OPPORTUNITIES

Demand for home services has skyrocketed in recent years.

In response to evolving technology, generational shifts and changing real estate trends, more and more homeowners recognize the benefits of professional home improvement and maintenance options, such as:

• Efficient technology: Advances in energy efficiency and smart home capabilities promise savings as well as greater comfort and security.

• Home value: Remodeling and renovations can increase a home’s value and enhance the experience of residents.

• Convenience: Professional service reduces the time and risk associated with many DIY projects. Online booking and support make it easier for people to consult and connect with service professionals.

This rapidly growing market represents an unprecedented opportunity for home service franchise businesses. Franchisors can expand market share or reach new territories by meeting rising demand, and franchise owners can leverage the efficiencies of the franchise model to spark quick and exponential unit growth.

Some types of franchise opportunities are especially suited to take advantage of the current

wave of consumer demand. Home service franchises are among the most flexible franchise opportunities available, because they can be open and operational quickly, don’t always require a brick-and-mortar location or large staff, and are highly scalable. Lean operations mean they can respond quickly to evolving customer needs.

Seasonal franchise businesses, in particular, are among the leanest and most flexible home service franchise models, amplifying those advantages. Here are some of the benefits seasonal businesses such as pest control, lawn care and landscaping and pool services offer that enhance the overall advantages of franchise opportunities:

• Low cost of entry: Seasonal franchises often offer lower initial investments and tend to be easier to launch and operate than many year-round franchise opportunities. With limited inventory to stock or store and streamlined staffing needs, they can be operated from home, eliminating the time and expense involved in securing and maintaining a physical storefront.

• Quick to open: The same things that tend to keep initial costs down for seasonal home service franchises help those businesses streamline

and accelerate the steps to opening. In the right circumstances, seasonal franchises can be operating within a few weeks of signing the franchise agreement. That means owners start serving customers faster, generate revenue more quickly and begin to see a return on their investment.

• Low overhead: Once a seasonal business is up and running, ongoing costs tend to be much lower than brick-and-mortar businesses. Ongoing savings on rent, utilities, furnishings, and other expenses mean more revenue stays with you and can be invested back into scaling the business.

Franchise systems are designed to help people from a variety of backgrounds quickly launch and successfully operate a new business. These systems free owners from the time-consuming administrative tasks that can overwhelm independent entrepreneurs. Streamlining operations and administration is a proven method for kickstarting lead generation, sales and revenue, and the flexibility and lean operations of seasonal home service franchises fully leverage those benefits.

Michael Moorhouse is president of Mosquito Shield. Mosquito Shield, part of the Five Star Franchising platform of home service brands, was ranked the #1 franchise in pest control by Entrepreneur in 2023 and 2024. For more information about IFA franchisor member Mosquito Shield, please visit franchise.org/franchiseopportunities/mosquito-shield
INDUSTRY SPOTLIGHT: Home Services & Home-Based 56 FRANCHISING WORLD / April 2024
Save the Date March 25-28th, 2025 www. multiunitfranchisingconference.com Produced by If you are interested in sponsoring, please call: 800.289.4232, Ext. 202 or email: sales@franchiseupdatemedia.com ©2024 Franchise Update Media. All rights reserved.

DEDICATION TO FRANCHISEES: HOW ONGOING TRAINING ELEVATES THE FRANCHISE EXPERIENCE

One of the great things about franchising is that it’s open to people from all backgrounds who have a variety of experience, skills, expertise and goals.

Our industry’s success stories include people from all walks of life. Whether you’re starting your career, looking to escape the tedium of the corporate ladder, or searching for opportunities to enhance your retirement or build a family legacy, there is likely a franchise that can help you accomplish your dreams.

Because of the diversity that defines the industry, it’s important that franchisors recognize that training is a powerful tool for setting franchise owners up for success. Many people entering the franchise industry have valuable experience, but they need help to acquire the full range of specific skills they’ll need to launch and sustain a successful franchise business.

It’s critical that franchisors prepare new owners and their employees for the variety of operations their business encompasses. It’s not just the initial training leading up to the franchise opening that’s important. Instead, franchisors can benefit significantly by investing in ongoing, evolving training. Building training into the very culture of the company supports the overall growth of the brand.

Most franchise businesses offer intense training during the onboarding process. New franchise owners often visit corporate headquarters for an in-depth, in-person program that combines classroom and/or digital learning with simulations or other hands-on education. These programs

typically include a comprehensive array of subjects, from management and hiring to operations and marketing, plus a deep dive into the specific products and services the franchise owner will offer.

Building training into the very culture of the company supports the overall growth of the brand.”

This intense introduction to a franchise’s specific processes and systems plays a critical role in franchise owner success. Learning the ins and outs of the business from experts in a safe environment is a crucial phase in the lifecycle of a franchise location. Too often, however, the pre-opening session is the extent of training offered by the franchisor. Franchise owners go back to their territory or location, open for business and try to remember everything they learned in a one- or two-week crash course.

INDUSTRY SPOTLIGHT: Home Services & Home-Based
58 FRANCHISING WORLD / April 2024

By taking a holistic approach to training, franchise owners and their teams can quickly and effectively adapt and respond as their industry evolves. It also prepares them to incorporate new tools and processes that will drive business and help them stay competitive in their market.

In this approach, training can take many forms. Continuing opportunities to upgrade and enhance existing skills — and add new ones — are essential. Those opportunities could be onsite or virtual and may involve specific products, new technology, a review of best practices or updated processes. It’s important franchise owners are aware of these opportunities and have reasonable access to them.

In order to meet the level of excellence we’re committed to, we maintain an industryleading training system.”

Encouraging franchise owners to support and empower each other is another part of a comprehensive culture of training. Shared support among owners is a major strength of the franchise industry. Proactively encouraging and facilitating ownerto-owner connections leverages earned institutional knowledge and reduces friction for new owners.

At 1-800-Packouts, our goal is to always improve our processes and improve ourselves with the ultimate goal of improving our clients’ experience. In the contents restoration industry, we meet clients in the immediate aftermath of traumatic events. Their homes have been recently devastated by a fire, flood, extreme weather or other catastrophic

impact. Our work involves the care and restoration of items that may have enormous financial or personal value. We painstakingly assess the items, create a comprehensive digital inventory, carefully transport each item and provide state-of-the-art cleaning services and secure storage. It’s much more than a simple transaction. It’s a true service that requires extraordinary empathy and understanding in addition to skill and expertise.

In order to meet the level of excellence we’re committed to, we maintain an industry-leading training system. Our training starts early and continues throughout the lifecycle of the business. Regular communication between the franchisor and franchise owner and with the owner network begins immediately and extends throughout operations.

Our franchise owners experience a state-of-the-art hands-on introduction to contents and personal property restoration related to insurance claims. Our headquarters includes a fully furnished home that franchise owners and their staff inventory, pack, clean, repack and return, all according to the highest industry standards.

In addition to our unique hands-on onsite training, 1-800-Packouts has

invested heavily in an online training platform for franchise owners and their employees. This digital program features short, accessible courses on our estimating and packing processes that team members can use in the field or office. It serves the vital purposes of equipping new employees for the job, upgrading the skills of current employees, providing on-the-job insights that enhance customer experience, and ensuring all team members are up-todate on the latest industry standards and best practices. We’re always working to add relevant and timely content to make the platform more robust. Training can’t be a one-and-done proposition. Successful franchisors are always training, educating and adapting. For us, our commitment to equipping our franchise owners for success is based on our values and culture. We’re empowering our owners to serve their community and make a difference in their neighbors’ lives.

Stefan Figley is the brand president of 1-800-Packouts. 1-800Packouts is part of the Five Star Franchising platform of home service brands. For more information about IFA franchisor member 1-800Packouts, please visit franchise.org/franchiseopportunities/1-800-packouts
April 2024 / FRANCHISING WORLD 59
In recent years, the home services industry has witnessed a significant shift towards sustainability.

As the Brand President of The Brothers that just do Gutters, I have observed this transformation firsthand. The growing environmental awareness among homeowners is not just a trend; it’s a movement towards a more sustainable and responsible future.

The gutter service industry, often overlooked in the broader home services sector, plays a crucial role in this green revolution. A study by the National Association of Home Builders (NAHB) revealed that more than 80 percent of consumers prefer eco-friendly homes, indicating a clear preference for sustainable practices in home maintenance and improvement.

Reducing Waste Through Recycling

One of our key initiatives is the recycling of old gutter materials. Most recycling centers happily accept aluminum, copper, and steel, making it a great environmentally safe way to dispose of old gutters. When recycling, it’s important to follow the specific guidelines of the recycling center. For those unable to transport their old gutters, some local services offer pickup. Scrap yards also accept these materials

and may provide compensation based on the material amount.

Eco-Friendly Materials and Practices

In addition to recycling, we prioritize the use of environmentally friendly materials. Our aluminum gutters are made from 80 percent recycled materials, and we are constantly exploring options for further increasing this percentage. Moreover, we are researching the use of biodegradable cleaning solutions for gutter maintenance, to minimize the environmental impact of our cleaning processes.

Rainwater Harvesting Systems

With increasing concerns about climate change and water resources, rainwater collection has become both a popular and necessary practice. This begins with an efficient gutter system. We offer solutions for connecting rainwater collection barrels to your downspouts. This simple connection can significantly impact water conservation, offering benefits like reduced dependence on municipal or well water, flooding prevention, and pollution elimination.

Educating Consumers and Employees

Awareness is the first step towards change. We invest in educating our customers about the benefits of sustainable gutter solutions. Our team provides detailed information on how choosing recycled materials and eco-friendly services can make a significant difference in their carbon footprint. Equally important is the training of our employees. We ensure that all our staff are well-versed in sustainable practices, enabling them to implement these methods effectively and educate homeowners.

Looking to the Future

As we look ahead, our commitment to sustainability remains unwavering. The Brothers that just do Gutters is dedicated to exploring innovative ways to reduce our environmental impact further. We are actively monitoring emerging technologies and materials that can make gutter services even more sustainable.

Danny Horboychuk is the Brand President of The Brothers that just do Gutters. His leadership in this role has been instrumental in scaling the business and making the company one of the nation’s leading providers of gutter services in the home services industry. As part of the Evive Brands family, the company is committed to delivering high-quality service and ensuring the wellbeing of homes and communities across the U.S. For more information about IFA franchisor member The Brothers that just do Gutters, please visit franchise. org/franchise-opportunities/the-brothers-that-justdo-gutters

INDUSTRY SPOTLIGHT: Home Services & Home-Based 60 FRANCHISING WORLD / April 2024

PREFERRED VENDORS

IFA's preferred vendors o er franchisors and franchisees products and services to advance their brands.

AnswerConnect Franchise is an Industry leader in Live Reception Franchise services. AnswerConnect can help you 24/7/365 to answer calls, set appointments, qualify leads, transfer calls, CRM integration, and more. Let AnswerConnect work IN your business, so you can work ON your business growth.

As the authority in franchise funding, Benetrends has been funding America’s most popular brands for 40 years. Benetrends' innovative and comprehensive suite of funding solutions not only helps franchisees successfully launch their dreams, but also helps catapult growth of franchise systems.

Paychex is a preferred provider of the IFA. As a leading provider of integrated human capital management solutions for payroll, human resources, benefits, and insurance services, Paychex helps simplify the intricacies of business including franchises.

SOCi enables the management of online business listings, local social media profiles, and individual location reputations through an all-in-one platform, with access available to users from the ground level to the corporate level.

SCAN TO LEARN MORE ABOUT IFA’S PREFERRED VENDORS

FLOURISHING PROSPECTS IN THE HOME SERVICES INDUSTRY

A surge in demand for home services over the past several years places the sector on a promising upward trajectory, offering entrepreneurs a potentially lucrative opportunity to invest in a market that shows no signs of slowing down.

Home remodeling spending reached $481 billion in 2023, up from $406 billion in 2021, according to Harvard University’s Joint Center for Housing Studies. Despite some economic headwinds, experts forecast the industry to reach $450 billion in 2024. In 2023, homeowners spent an average of $13,667 across 11.1 projects, reflecting a 51 percent increase in home project spending compared to 2019.

Here are five key trends shaping the future of home services:

Aging Housing Infrastructure

One of the top motivators for homeowners remains the maintenance of their homes, according to Angi. With the median age of a home in the United States hitting 40 years old, homeowners are investing heavily in renovations and maintenance to preserve or increase their property’s value.

Older Homeowners Driving Spending

The number of seniors is on track to hit 82 million by 2050. An overwhelming majority of seniors agree that aging in place is an important goal, driving significant investment in home modifications and improvements to ensure safety, comfort and independence. At least 93 percent of seniors want to remain in their homes as long as possible. Bathroom modifications, such as comfort-height toilets and walk-in showers, accessible kitchen cabinets and flooring changes help make it easier for seniors to enjoy their home for years to come.

Millennial Homeownership

As millennials enter the housing market, their preferences and behaviors are influencing home service trends. This generation values

smart technology, energy efficiency and spaces that reflect their style, contributing to the overall increase in home improvement spending. With record home values, millennials are more inclined to invest in remodeling and maintenance to enhance their homes’ functionality and aesthetic appeal. Social media influencers and popular home remodeling programs are also prompting this tech-focused generation to make aesthetic upgrades to their living spaces, resulting in a high demand for home services.

A Market for Small Businesses

Small businesses are driving the growth of the home services industry.

INDUSTRY SPOTLIGHT: Home Services & Home-Based 62 FRANCHISING WORLD / April 2024

The personalized service and local knowledge they offer are highly valued by homeowners. With at least 40 percent of homeowners undertaking more home improvement work in response to rising interest rates, the market’s expansion provides ample opportunities for small businesses to capture new clients and projects.

New Technology Fueling Services

The integration of new technologies into home services is enhancing how services are delivered, improving efficiency and increasing customer satisfaction. Home service professionals can rely on 3D tools to paint a picture of the final

results for customers. In addition to improved customer service, smart home technology for thermostats, home security and more is becoming increasingly prevalent, requiring installation and maintenance services.

For entrepreneurs eyeing the home services industry, the market is ripe with opportunity. As homeowners continue to invest in their properties, the demand for home services will remain strong, making it an ideal time for entrepreneurs to enter this thriving market.

Application.

Applications may be completed online at franchise.org/cfe Acceptance.

Applicants will receive email notification regarding acceptance of CFE candidacy and next steps to launch your CFE journey.

Acquire credits.

You will be provided with a CFE Getting Started Guide that explains the program requirements and details for selecting the education courses that best fit your schedule and goals.

Program completion.

You now join the ranks of thousands of franchise leaders worldwide who have earned the esteemed CFE designation! APPLY

Program requirements can be satisfied through a combination of professional franchise experience, approved event participation, and authorized education courses.

Congratulations!

You’re a Certified Franchise Executive!

April 2024 / FRANCHISING WORLD 63
Danielle Wright is the chief development officer for Premium Service Brands.
THE PATH TO BECOMING A CERTIFIED FRANCHISE EXECUTIVE TM (CFE)
TODAY! BEGIN TODAY! Visit: franchise.org/certification Email: cfe@franchise.org

HOW THE HOME SERVICES INDUSTRY IS FILLING A VOID

When you come across “home services industry,” it may seem straightforward, but the concept actually includes a wide range of essential services that support homeowners in various ways.

From plumbing and landscaping to HVAC and home repair, the industry caters to an extensive range of needs, ensuring that homes are safe, functional and well-maintained. Recent numbers prove that the industry is in high demand. As of 2023, the U.S. Home Service Market was valued at a staggering $90.46 billion, with projections indicating a rise to $156.29 billion by 2030, with a 7.1 percent growth rate. This robust development underscores the increasing use of these home services.

Despite the rising popularity in do-it-yourself (DIY) projects, there remain certain tasks that even the most skilled DIY’ers are hesitant to approach. These challenging chores, combined with a necessity and an increase in disposable income, afford homeowners the flexibility to seek professional assistance. This perfect combination creates a strong demand for the specialized knowledge and services offered by home solution experts, making them an essential component of everyday life for homeowners.

Among the plethora of home services offered, there are niche businesses that cater to more specific

demands, such as holiday lighting. This particular service has seen a surge in demand over recent years, as more than 84 percent of Americans enjoy decorating their homes for the festive season. The process of installing these decorations is fraught with risks for homeowners, including falls from ladders and injuries from lifting heavy objects. In fact, over 18,000 individuals suffer decorating-related injuries each holiday season.

These safety concerns are where franchises like Wonderly Lights step in. Specializing in holiday light installation, the concept offers a full-service package

that includes professional exterior installation of lights and greenery, followed by the removal and storage of these decorations post-season. By opting for such services, homeowners can enjoy the festive spirit without the associated risks and hassles. The Christmas Lights and Decorations Market alone was valued at $16.18 billion in 2023, with projections showing an increase to $24.22 billion by 2030, with a 6.97 percent rate of growth.

While niche markets like holiday lighting might cater to a particular segment of customers, these clients tend to be highly dedicated and loyal, recognizing the unique value and convenience offered by such specialized services. Catering to a holiday-based market can be both fun and rewarding, offering service providers the opportunity to engage deeply with their work and their clients. Seasonal businesses such as holiday lighting services can serve as an excellent side hustle or a means to offset other business activities during the off-peak months.

As the industry continues to grow, services like these highlight how specialized, seasonal offerings can complement the revenue streams of traditional home maintenance services throughout the year, while providing value and safety to its clientele.

INDUSTRY SPOTLIGHT: Home Services & Home-Based
Austin James is the director of franchise development for Buzz Franchise Brands.
64 FRANCHISING WORLD / April 2024

Franchise Voice: The International Franchise Association Podcast delivers top trends and news from the world of franchising to franchise leaders and opportunity seekers. Hear about the success stories and proven business strategies that illustrate why franchising represents one of the most dynamic and widely used growth strategies in the modern era.

SUBSCRIBE AND LISTEN AT: podcast.franchise.org

A SPOTLIGHT ON THE LODGING INDUSTRY

The lodging industry’s substantial growth in 2023 reflects its resilient rebound from the challenges posed by the pandemic in 2020 and 2021.

According to the 2024 State of the Industry report by the American Hotel and Lodging Association (AHLA), the U.S. hotel industry revenue per available room (RevPAR) reached $98 in 2023, up from $93 in 2022, achieving a 4.8 percent growth year-over-year and marking a 13 percent improvement over 2019’s pre-pandemic RevPAR

levels. Nationwide average daily rate (ADR) increased to $155 from $149 in 2022 and is further expected to grow to $160 in 2024. Hotel occupancy has also continuously improved since the lockdown and is expected to climb up to 63.6 percent in 2024.

The strong performance of the U.S. lodging industry is attributed to factors such as the post pandemic

pent-up demand for leisure travel and the rise of ‘bleisure’ travel where company executives and employees combined the best of business and leisure in their travel plans. As more vacation destinations within the U.S. opened up and travel restrictions eased in other countries around the world, there was an increase in the number of domestic and inbound tourists. In addition, as the price of goods rose significantly due to inflation, consumers found more value in spending on services, including memorable travel experiences to concerts and sporting events. Hotel demand and revenues soared at concert destinations of highprofile celebrities such as Taylor Swift and Beyonce. The Eras Tour became the first tour to top $1 billion and generated more than $200 million in hotel room revenue in the U.S. As trade conferences and trade shows returned to pre-pandemic norms, companies also increased their business travel budgets, fueling growth in the industry.

Roadblocks for the Lodging Industry in 2023

Although 2023 saw an upward trend in the lodging industry revenues, franchised hotel businesses still faced challenges as investments in the industry remained subdued. Global investment volume reached a 10-year

INDUSTRY SPOTLIGHT: Lodging 66 FRANCHISING WORLD / April 2024

low (excluding 2020) of $32.5 billion in the first nine months of 2023, according to JLL’s Global Hotel Investor Sentiment Survey, due to high interest rates increasing construction costs.

Staffing shortages also disrupted the operations of franchised hotel businesses across the United States in 2023. During the COVID shutdown, travel restrictions forced the lodging industry to cut staff and management, with the unemployment rate sharply rising from 5.7 percent in February 2020 to 39.3 percent in April 2020. Even after three years, the industry has yet to return to pre-pandemic staffing levels. Lodging franchises have offered higher benefits and more flexibility to attract and retain talent, with the national average hotel wage reaching an all-time high of more than $23 per hour in 2023, according to the U.S. Bureau of Labor and Statistics — but the industry has continued to face skilled labor challenges, especially after the mid-year labor strikes.

Optimistic Forecast for 2024

Looking ahead, according to the IFA 2024 Franchise Economic Outlook report, 2024 will witness a forecasted 0.9 percent increase in the number of franchises in the lodging industry, reaching 36,000 locations. Total output production is expected to grow by 4.5 percent to $97.2 billion, driven by increased RevPAR. Employment in the lodging sector is expected to reach 723,000 jobs in 2024, reflecting the same growth rate as establishments.

The year began on an optimistic note, with inflation slowing and the Federal Reserve announcing plans to lower interest rates later in the year. These macroeconomic conditions are contributing to renewed interest among hotel investors and point to an overall

favorable outlook for the franchised lodging industry. The following trends will influence the lodging franchise sector in the year ahead:

In the midst of the projected sluggish economic atmosphere in the first half of 2024, priceconscious U.S. travelers are more likely to limit outbound international leisure travel and instead choose domestic vacation destinations. In addition, with the easing of travel restrictions in many countries, inbound travel by foreign tourists to the U.S. is expected to contribute a large share of lodging revenues. Chinese travelers, which constituted the world’s largest outbound travel market before the pandemic with 154 million trips and $255 billion in spending in 2019, cited the U.S. as one of their most popular and desirable long-haul destinations, according to a CNN news article on Chinese travel in 2023.

1

2

According to the New Concept Reports (NCR) published quarterly by FRANdata, it was observed that many mature lodging brands introduced several new concepts in 2023 in franchising. These concepts strategically offered various price points and service levels to cater to diverse customer needs while retaining customers through loyalty programs. The most notable of these concepts were extended-stay properties with features such as kitchenettes and high powered wi-fi connections aimed to attract the rising number of digital nomads who wish to work while they travel. These concepts are likely to retain popularity in 2024 with the current hybrid nature at workplaces.

3

With the borrowing rates expected to decrease by mid-2024, merger and acquisition transaction activity in the

franchised lodging sector is anticipated to rebound in the second half of the year, paving the way for growth in 2025.

According to a 2023 Hotels Mag news report, private equity investment in 2024 is likely to focus on luxury, select-service and extended-stay hotel assets in top urban markets including Los Angeles, New York, Chicago and Boston, among others. Additionally, there is a notable shift towards hotel conversions which is a swift and cost-effective way to expand portfolios. The 2024 AHLA State of the Industry report also predicts the return of foreign investment, mainly from investors in the Middle East and Asia, which had been absent since the lockdown due to geopolitical volatility and widespread border closures.

The growing integration of generative AI for enhanced operational management efficiency, monitoring consumers’ online search behaviors and enhancing overall guest experiences is rapidly being incorporated across the franchised lodging industry. More brands are expected to adopt AI interfaces to streamline and minimize complex and time-consuming efforts and maximize the workforce potential.

4

As inflation slows down and concerns about a recession diminish, coupled with renewed hotel investment opportunities, the franchised lodging industry is poised to sustain its recovery and growth momentum from 2023, with the overall outlook for 2024 suggesting a trajectory of accelerated growth.

Khadija Cochinwala is a research analyst at FRANdata. She is part of a team of analysts who measure, track, and analyze franchisor performance. Khadija is committed to producing quality franchise insights that enable strategic decision making and propelling business growth. For more information about IFA supplier member FRANdata, please visit franchise.org/suppliers/frandata

April 2024 / FRANCHISING WORLD 67

QUALITY ASSURANCE IN FRANCHISE OPERATIONS: MAINTAINING STANDARDS AND ENSURING CUSTOMER SATISFACTION

Understanding the Key Components of a Successful Quality Assurance Program

At the heart of every thriving franchise lies a steadfast dedication to maintaining high standards and ensuring customer satisfaction. As the COO and president of AtWork, one of the nation’s largest and fastest-growing staffing franchises, I have seen firsthand the important role quality assurance plays in sustaining brand integrity and fostering growth.

What is Quality Assurance in Franchising?

Quality assurance (QA) in franchise operations includes everything from standard operating procedures to ongoing training and performance evaluation. At its core, QA is about

creating a consistent, high-quality experience for every customer, regardless of which franchise location they visit. Consistency builds trust in the brand and ensures long-term success for the franchisor and its franchisees alike.

Service is at the heart of our business. A robust QA program has some key components to ensure customer satisfaction and brand integrity. Take a closer look at some essential elements of any successful franchise QA program.

Start With a Detailed Handbook

Standard operating procedures (SOPs) are the backbone of any QA program. They provide a detailed roadmap for franchisees, outlining

every step of the operational process. By breaking down operations into granular, documented processes, we ensure that every franchisee can replicate our successful formula. From the moment the doors open in the morning to the end-of-day closing routine, SOPs guide franchisees in delivering consistent service. It also helps franchisees navigate the unpredictable aspects of business operations, enabling them to make informed decisions and adapt to their specific market conditions.

Implement a Robust Training Program

Training is where SOPs come to life. Many franchisees come into the industry as newbies. A comprehensive training program ensures franchisees and their employees adhere to the SOPs and exemplify the brand’s values and commitment to quality. Training helps create a culture of excellence and accountability, which will distinguish the brand in a crowded marketplace.

FRANCHISE OPERATIONS
68 FRANCHISING WORLD / April 2024

It is important to remember that training is an ongoing process. Your training efforts need to evolve with the business and the market to keep the entire franchise network aligned with the latest best practices and industry standards. I recommend implementing a franchise coaching system, so franchisees receive personalized support and guidance from a trusted peer.

Solicit Feedback From Franchisees and Customers

Regularly evaluating franchisee performance against established SOPs and customer satisfaction metrics is essential. This evaluation often involves customer feedback mechanisms, such as surveys and Net Promoter Scores, as well as internal audits and reviews. These tools provide valuable insights into where operations can be improved and where they excel.

“ Consistency builds trust in the brand and ensures long-term success for the franchisor and its franchisees alike.”

My best advice when getting customer feedback from a survey is to keep it simple. According to psychologist Gloria Mark, the average person’s attention span is shrinking — it is down to only 47 seconds for a single screen. Completion rates also drop up to 20 percent for surveys that take longer than seven minutes. Avoid having customers answer a lengthy list of questions. They should be able

to give their feedback quickly so they can move on to their next task.

Despite all the technological advances, sometimes the best way to get feedback is to pick up the phone and connect with your customers. We implemented automated technology to remind our franchise owners when it is time to make a personal connection with their clients.

A comprehensive training program ensures franchisees and their employees adhere to the SOPs and exemplify the brand’s values and commitment to quality.”

Franchisors must also ensure that the support and services they provide to franchisees are effective and meet the franchisees’ needs. Franchisors should rely on regular feedback mechanisms, performance metrics and open lines of communication to gauge their efforts. By continuously monitoring and adjusting your support, franchisors can help franchisees overcome challenges, capitalize on opportunities and deliver the highquality service that customers expect.

Craft a Remediation Program

Even with the best SOPs and training, some franchisees may need help to meet your brand’s standards. A remediation program offers targeted support to these franchisees, helping them address specific challenges and align their operations with

brand expectations. Support can range from additional training to operational overhauls, depending on the nature of the issues identified.

A remediation program is an asset for any franchisor. It demonstrates a commitment to franchisee success and brand integrity, offering a structured way to address and resolve issues that could otherwise undermine the entire franchise network. Remediation programs also reinforce the idea that franchising is a partnership, with the franchisor and franchisees working together towards common goals. By investing in the success of each franchisee, franchisors strengthen the brand and ensure its longevity and relevance in the market.

Our commitment to QA has been key to our success and sustained growth. It forms the basis of our service-based approach. We continue to innovate and adapt our QA efforts to meet the needs of our franchisees and the markets they serve.

Jason Leverant is the president and chief operating officer of AtWork, an award-winning national staffing firm. He also serves as a board member with the American Staffing Association and owns an AtWork franchise location in Maryville, Tennessee. For more information about IFA franchisor member AtWork, please visit franchise.org/franchise-opportunities/ atwork-personnel

April 2024 / FRANCHISING WORLD 69

REVOLUTIONIZING FRANCHISE DEVELOPMENT AND SUPPORT: THE IMPACT OF AI INTEGRATION

Exploring the game-changing ways of integrating AI into a franchising business model.

In the fast-paced world of franchising, staying ahead demands a keen eye for innovation and efficiency. As conversations surrounding artificial intelligence (AI) have come to the forefront in recent years, we knew Batteries Plus had to evolve with the latest advancements in technology, especially as a technology-forward franchise brand.

In 2023, Batteries Plus launched the “AI Center of Excellence” — a long-term task force dedicated to exploring and implementing new uses for AI in our franchising business model so that we could provide enhanced

support for franchise owners, stores and associates, and ultimately, offer a better customer experience.

The possibilities are endless when it comes to ways in which AI applications can enhance services across the board — from franchise development and customer service, to learning management systems and inventory optimization to assist customers and owners. Today, the team is reimagining existing support tools by creating new conversational chatbots on knowledge bases, developing tools for content creation and AI-powered developer tools.

TECHNOLOGY
70 FRANCHISING WORLD / April 2024

Utilizing AI as a Tool for Franchise Growth and Development

The first priority for the “Center for Excellence” team was adopting a conversational chatbot, similar to what you may find on the popular AI platform ChatGPT. This chatbot has already proven to be invaluable in evolving our franchising model.

The possibilities are endless when it comes to ways in which AI applications can enhance services across the board — from franchise development and customer service, to learning management systems and inventory optimization to assist customers and owners.”

Hinging on timely and effective communication with prospective candidates, efficiency is the very foundation for effective franchise development. Whether it’s generating leads, or sorting through those leads to find the best fit for the brand, many franchisors can empathize that achieving significant, yet responsible, growth is no small task.

The deployment of AI-powered chatbots to aid in communication with candidates allows for immediate, personalized responses to inquiries, which, in turn, significantly increases the volume of leads our team has the bandwidth to cover. When compared to a tenured human lead qualifier, the

AI tool outperformed by a wide margin, with a remarkable 425 percent increase in qualified appointments booked.

Keeping Safety and Security a Priority in AI Implementation

It’s important to note that, as exciting as it is to implement AI into franchising strategies, we’ve found it to be imperative that each application undergoes a meticulous testing process before it’s launched into any customer-facing platforms. This is meant to minimize any risk of misinformation or other frustrations.

As we explore all available AI options, we’re simultaneously developing robust privacy policies and guidelines to ensure the safety and security of all Batteries Plus franchise owners and customers.

AI is reshaping our business strategy, offering the potential for significant future productivity gains. By leveraging AI tools to engage with candidates promptly, franchisors can enhance the overall candidate experience and drive sustainable and responsible

When

compared to a tenured human lead qualifier, the AI tool outperformed by a wide margin, with a remarkable 425 percent increase in qualified appointments booked.”

growth. As we continue to strategically integrate AI into our business model, we expect to see enhanced efficiency, improved decision-making, and overall operational optimization, positioning us for success from both a franchise development standpoint, as well as in the ever-evolving retail landscape.

Joe Malmuth is the chief development officer of Batteries Plus, leading the brand’s plans for franchising growth and development. For more information about IFA franchisor member Batteries Plus, please visit franchise.org/ franchise-opportunities/batteries-plus

April 2024 / FRANCHISING WORLD 71

LEGAL UPDATES FROM AROUND THE WORLD

The IFA’s International Committee is constantly monitoring legal developments around the globe to help keep the IFA’s membership apprised of new, pending or amended franchise laws and other developments that directly impact the franchise industry.

The past year has been a busy one for legislators and regulators with a number of new laws, amendments and proposals relating to franchising. Below we’ve provided a summary of select new developments that have been introduced within the last year.

Proposed Franchise Disclosure Laws

• Nigeria – In 2023, the Nigerian senate passed a new franchise law. Reports indicated that the

proposed franchise law would have requirements for pre-sale disclosure, registration of trademarks and other intellectual property with the Nigerian intellectual property authority, and registration of franchise agreements entered into with foreign franchisors. The President of Nigeria did not act upon the proposed legislation in time so it did not enter into force in 2023; however, the IFA is monitoring whether this legislation will be re-introduced in 2024.

• Poland – Polish parliament is reportedly considering the adoption of an amendment to the Polish Civil Code to expressly govern franchise agreements. While still under consideration, the draft law includes, among other things: a requirement to provide a franchise disclosure document 14 days prior to signing a franchise agreement and, unusually, before any amendment to a franchise agreement; a one year right of rescission for failure to provide disclosure or for providing false disclosure; and a limitation of one-year on post-term non-competition covenants.

The draft law also includes a few surprising proposals. One provides that termination of a franchise agreement by a franchisor for nonpayment by the franchisee would require that the payment default last for two full payment periods. In practice, this would give franchisees with monthly payment obligations up to a 60-day grace period, compared to the usual short grace period

INTERNATIONAL
72 FRANCHISING WORLD / April 2024

(e.g., 5 days) in most franchise agreements for payment defaults. Another provision would grant a franchisee the right to request that the fees under a franchise agreement be reduced if the franchisee’s revenues are materially reduced for reasons outside of the franchisee’s control. In effect, this would allow franchisees to sue franchisors to lower fees for any major unexpected events (force majeure) and, depending on the final wording of the law, possibly for other less serious events.

• Saskatchewan, Canada – Currently, six of 10 Canadian provinces have franchise laws. Saskatchewan’s proposed Franchise Disclosure Act would make it the seventh province in Canada to regulate franchising. The draft bill under consideration would be based upon the Uniform Franchise Act adopted by the Uniform Law Conference of Canada and British Columbia’s Franchises Act. If passed, the Saskatchewan franchise law should be familiar to franchisors already operating in Canada.

Amendments to Existing Franchise Laws

• Australia – In February 2024, the Australian Minister for Small Business released an independent review of the Franchising Code of Conduct. The review assessed the Code’s general fitness for purpose, considered expanding provisions relating to new vehicle dealerships, and assessed the effectiveness of the new Franchise Disclosure Register. The review found that, although the Code is generally fit for purpose, some substantive and drafting changes could be made to increase its effectiveness. The government will now consider these recommendations for implementation, and their response is expected by mid-2024, as the current Code is set to expire on April 1, 2025. Some of the key take-aways from the review will be welcomed by franchisors — namely, that existing disclosure requirements are too detailed and repetitive, and reduction or removal of disclosure obligations during renewal and when existing franchisees enter into additional franchises.

Less welcome to franchisors are proposals in the review to include in all franchise agreements certain vague and untested requirements that are currently only applicable to motor vehicle franchises. These will include requirements for a provision in franchise agreements relating to compensation to the franchisee if the franchisor ends the agreement early, and to assess if the franchisee will be provided

with a “reasonable opportunity to make a return.”

• Indonesia – The Indonesian Ministry of Trade (MoT) has unofficially confirmed that Indonesia’s franchise law is undergoing revisions that are expected to be approved during 2024. Notably, the revised regulations will no longer allow the issuance of a franchise registration (STPW) based upon pending trademarks. Instead, only fully registered marks will be accepted. In practice, this means that a brand must have at least one fully registered trademark in Indonesia to offer franchises in Indonesia. Another notable change is the revision of the definition of a franchise. Historically, the regulations have not clearly defined what constitutes a franchise. This has enabled many foreign brands to sidestep Indonesia’s franchise law by restructuring their agreements by avoiding the term “franchise agreement.” It appears that the MoT may be taking steps to close this known (and often used) loophole going forward. It’s unclear how or whether this change will affect prior agreements that were not registered but otherwise meet the new definition of a franchise.

Rosen Karol Salis, PLLC

Providing legal services in the franchise field for over 40 years.

Rosen Karol Salis, PLLC, has provided the highest-quality legal services in the franchise field for over 40 years. Our firm has represented franchisors, franchisees, and franchisee organizations in all areas of franchise law. Located in New York City, we provide legal services to clients nationwide. Our firm has represented clients in all areas of franchise law, from setting up franchising systems and programs, forming all entities, drafting, and negotiating (on all sides) franchise and multi-unit development agreements, disclosure, and other ancillary documents, as well as mediating, arbitrating, and litigating in both state and federal courts. We negotiate lease agreements and financing documents for the sale or acquisition of franchise related real estate, and handle all matters applicable to franchise transactions. Rosen Karol Salis represents franchisors and franchisees in nearly all industry fields, including restaurants, real estate brokerage, healthcare, fast food, fitness, energy, hospitality, education, health and beauty, telecommunications, senior care, courier services, apparel and many more.

Rosen Karol Salis are authors of the section on Franchise Law in the United States which appears in the Third, Fourth and Fifth Editions of the (International) Franchise Law Review. Since 2017 our law firm has written the review of franchise law in the U.S. which appears in the International Comparative Guide to Franchise Law. Rosen Karol Salis, PLLC is highest rated by Martindale Hubbell amongst franchise law firms in the U.S. Our Firm, Richard L. Rosen, John Karol, and Len Salis, have won numerous awards and honors in the field of Franchise Law.

RLR

ROSEN KAROL SALIS, PLLC

110 East 59th Street, 23rd Floor | New York, NY 10022

Tel: 212-644-6644 | Fax: 212-644-3344

Email: rlr@rosenlawpllc.com

www.richardrosenlaw.com

April 2024 / FRANCHISING WORLD 73

• Saudi Arabia – The Kingdom of Saudi Arabia’s new franchise law, effective since 2020, was amended in 2023 to remove the requirement for franchisors to disclose their financial status and provide copies of audited financial statements for the last two years. This amendment was spurred by feedback received by regulators that it was difficult for many franchisors to comply with these requirements. This change, which makes it easier for brands to enter the Saudi market, is consistent with the Saudi government’s goal of establishing the Kingdom as a hub for international franchising.

Other Laws Affecting Franchising

• Australia – As of November 2023, Australia’s Consumer Law, which has applied to franchise agreements with small business franchisees since 2016, will now impose strict penalties on franchisors who propose, use or rely on unfair contract terms in their standard form agreements. Very substantial penalties (up to A$50M) could be imposed for violations. Franchisors active in Australia are encouraged to have their form agreements thoroughly reviewed to remove any terms or conditions that could be viewed as unfair under the Consumer Law.

• Brazil – As of January 1, 2024, franchise agreements in Brazil will no longer need to be registered either with the Brazil Central Bank or the Brazilian trademark office (INPI). While the Central Bank registration requirement was eliminated over a year ago and the INPI registration process was made optional, in practice, INPI registration continued to be

necessary to allow franchisees to deduct franchise agreement fees as business expenses under Brazil’s tax code. This issue has now been resolved, effectively eliminating any reason to register franchise agreements in Brazil.

Although the need for registering franchise agreements has been eliminated, the amended law expressly requires that franchise disclosure documents be delivered in Portuguese and that franchise agreements prepared in a foreign language be accompanied by a certified translation into Portuguese. While translation had previously been required as part of the registration process, it is now mandatory for disclosure and franchise agreements, regardless of registration.

• Quebec, Canada – As of June 2023, franchise agreements and other standard ancillary agreements for franchisees in Quebec must be translated into French under Quebec’s new language law. This translation requirement also extends to certain trademarks, signage, menu

boards and packaging. Moreover, beginning in 2025, any non-French language trademarks (e.g., product names, taglines, etc.) must be registered to avoid a requirement for translation into French. The penalties for failing to comply with Quebec’s broad new language law requirements can be met with a fine of up to CAD$30,000 for a first offense. Accordingly, it’s important for franchisors active in Quebec or considering expansion to Quebec to review their contracts and materials to ensure compliance with the new language requirements.

• United Arab Emirates – The UAE’s existing commercial agency law was repealed and replaced in 2023. The new agency law, while similar in scope to the old agency law, expressly covers franchise agreements; however, it only applies to exclusive agreements covering all of the UAE or an entire emirate within the UAE. Notably, the new commercial agency law still requires registration of the agreement to grant an agent (franchisee) protection. This will allow franchisors to avoid registration by not agreeing to notarize and legalize franchise agreements as was the case historically under the old law.

a member of the IFA’s International Committee. Abhi is a board member of the IFA’s Diversity Committee and ABA Forum on Franchising’s International Division. For more information about IFA supplier member Baker McKenzie, please visit franchise.org/suppliers/baker-mckenzie

74 FRANCHISING WORLD / April 2024
Kevin Maher and Abhishek Dube are members of Baker McKenzie’s Franchise, Distribution & Global Brand Expansion team. They assist clients with expanding their brands globally via franchise, license, distribution, joint venture, M&A and direct investment. They work with new and existing franchise programs and have structured and negotiated franchise and distribution transactions for the world’s leading brands. Kevin is

It’s not just a membership. It’s a partnership.

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 790,492 franchise establishments that support almost 3 percent of the Gross Domestic Product (GDP).

IFA members include franchise brands and franchisees in over 300 different business format categories. Join us, and together we can continue to protect, enhance and promote franchising.

IFA TODAY
JOIN
franchise.org/membership

THE FTC AND FRANCHISING

The past few years have seen a surge of activity at the Federal Trade Commission, the federal regulator of franchising.

The activity has not yet translated into anything specific to the franchise sector, but there are reasons to remain on alert.

In March 2024, the U.S. Senate confirmed President Biden’s nomination of Republicans Andrew Ferguson and Melissa Holyoak to serve as commissioners. They will serve together with Chair Lina Khan, Commissioner Alvaro Bedoya, and Commissioner Rebecca Kelly Slaughter, who was simultaneously approved for a new term. By law, no more than three of the five FTC

commissioners can be from the same party. After operating with three Democratic commissioners and two empty seats for nearly a year, the FTC now has a full complement of five Commissioners. This may change the pace of FTC deliberations, but it is unlikely to change the agency’s policy direction.

By and large, the policy direction since Chair Khan’s appointment in the summer of 2021 has followed “key principles” she laid out in a memo to the FTC staff in September 2021. These principles included

“recognizing that antitrust and consumer protection violations harm workers and independent businesses as well as consumers,” “focusing on power asymmetries and the unlawful practices those imbalances enable,” and “focusing on structural incentives that enable unlawful conduct — be it certain conflicts of interest, business models, or structural dominance — as well as looking upstream at the firms that are enabling and profiting from this conduct.”

On the consumer protection side, the FTC has vastly ramped up its rulemaking efforts. By virtue of a U.S. Supreme Court decision in April 2021, the FTC lost what had been its primary tool to recover money in enforcement actions in court. To fill the vacuum, the FTC has been busy proposing new trade regulation rules — because the FTC has clear authority to recover money for rule violations.

LEGAL
Andrew Ferguson (R) Federal Trade Commission, Commissioner Melissa Holyoak (R) Federal Trade Commission, Commissioner Alvaro Bedoya (D) Federal Trade Commission, Commissioner Lina Khan (D) Federal Trade Commission, Chair
Photos: www.ftc.gov/about-ftc/commissioners-staff/commissioners 76 FRANCHISING WORLD / April 2024
Rebecca Kelly Slaughter (D) Federal Trade Commission, Commissioner

In areas of special interest to the franchise sector, several matters are before the FTC:

• The RFI. The FTC’s “Request for Information” (RFI), initiated in 2023, asked for a volume of information about franchising and resulted in the submission of over 5,000 comments. We understand that the FTC staff is reviewing those comments and may ultimately issue a report. The question is whether the report would lead to proposed changes in the Franchise Rule — or maybe even to the proposal of a new regulation governing the franchise relationship. If the FTC used its rulemaking authority to adopt limitations on the franchisorfranchisee relationship, that position would likely be challenged in court with the allegation that the FTC overstepped its authority.

• The Non-Compete Rule. In January 2023, the Commission proposed adopting this far-reaching regulation, which would apply in the employer-employee context. In doing so, the FTC took the controversial position that it has the power to make rules under the “unfair methods of competition” part of the FTC Act. As proposed, the Non-Compete Rule would not apply to franchise agreements, but the FTC specifically sought comment on whether it should expand the proposal to cover the franchisor-franchisee relationship. If the FTC were to do so, it would be unprecedented and undoubtedly provoke a vigorous challenge in court from the IFA and others. But even if the Non-Compete Rule remains limited to employer-employee relationships, the franchising community should pay close attention to how the FTC fares with its claim of “unfair methods of competition” rulemaking

power. If the FTC succeeds, the Non-Compete Rule surely will not be the last use of that power.

• The Franchise Rule. By its own calendar, the FTC is supposed to periodically review and consider revisions to all of its regulations on a ten-year cycle. The purpose of that review is to consider whether there have been changes in the industry, the economy, the law, or other factors that bear on whether to amend, retain, or even rescind a regulation. The Franchise Rule was last amended in March 2007, and so the once-a-decade review should have been completed years ago.

After operating with three Democratic commissioners and two empty seats for nearly a year, the FTC now has a full complement of five Commissioners.

The Commission conducted online public workshops in November 2020 to explore various issues relating to the Franchise Rule. There were three such workshops held at that time, followed by the public submission of comments to the FTC.

These steps produced no detectable momentum toward updating the Franchise Rule. The process for amending the Rule would require following the standards set by the Magnuson-Moss Warranty — Federal Trade Commission Improvement Act of 1975, and that process requires patience. Under that process (usually called a “Magnuson Moss Rulemaking”), the Commission would have to start by issuing a staff report, then issuing an Advance Notice of

Proposed Rulemaking (followed by a public comment period), a review of those comments, then issuing a Notice of Proposed Rulemaking (and a public comment period), a review of those comments, and then the final issuance of amendments to the Franchise Rule. Given these hurdles, the FTC’s interest in “unfair methods of competition” rulemaking — a different path — is probably no coincidence.

The NLRB Collaboration. Finally, consider the FTC’s 2022 Memorandum of Understanding with the National Labor Relations Board, the agency chiefly responsible for launching the “joint employer” debate. Although the MOU does not identify the joint employer issue as an “area of mutual interest” for the two agencies, it names several others, such as “the imposition of one-sided and restrictive contract provisions, such as noncompete and nondisclosure provisions” and “the ability of workers to act collectively” and “the classification and treatment of workers.” This not only verifies Chair Khan’s 2021 policy objectives, but also makes it easy to predict how the current commission would view joint employer and employee/independent contractor issues in the context of franchising.

Time will tell whether the FTC will play a more active role in regulating the franchise sector over the next few years. Stay tuned: in Washington, nothing should be taken for granted.

Dave Koch and Lee Plave are co-founders of the law firm

Plave Koch PLC, just outside of Washington, DC. Dave and Lee both began their careers at the Federal Trade Commission. Dave served in the Bureau of Competition and as an Attorney-Advisor to Chairman Daniel Oliver. Lee worked as an enforcement attorney in the Bureau of Consumer Protection on the Funeral Practices Rule and as Rule Coordinator for the Used Car Rule. For more information about IFA supplier member Plave Koch, please visit franchise.org/suppliers/plavekoch-plc

April 2024 / FRANCHISING WORLD 77

PROSPECTIVE FRANCHISEE – NO NEED FOR A LAWYER. WRONG!

Let’s start with the obvious of the tendency to avoid using (paying) a lawyer for FDD and franchise agreement reviews.

As attributed to Benjamin Franklin, this is one of those “penny wise, but pound foolish” situations. Prospective franchisees who simply rely on what they have heard and learned about a franchise system from the franchisor’s sales team or brokers, simply glance at the Franchise Disclosure Document (“FDD”) and sign the franchise agreement as is without the advice of a lawyer (and an accountant) run the risk of monetary and other disappointment. Prospective franchisees who do not ally themselves with a

franchise lawyer do themselves a great and, often costly, disfavor. A franchise lawyer knows what to look for in the FDD as it may not all be obvious to the casual reader and there may be “signs” that point to issues not fully developed in the FDD that a prospective franchisee should be aware of when evaluating the opportunity. A franchise lawyer can also assist a prospective franchisee on how to go about validating information and the sources of such information beyond that which a franchisor or its sales people may provide to a prospect.

Signing that 25-to-40-page franchise agreement that is filled with legal and monetary obligations, including a commitment by a franchisee for a period typically of five to 10 years or more, without the guidance or advice of a franchise lawyer is “foolish”. The FDD is required by the Federal Trade Commission under its Franchise Rule as a way to provide a prospective franchisee as to certain important background information about the franchise system – from when the system was formed, who is part of the ownership, who runs the system, what are the estimated initial costs/investment, what are the fees that a franchisee will incur, possibly some information on the financial performance of franchisees already in the system, what training a franchisee receives, to how many franchise and company units exist and are anticipated; among points of information.

LEGAL
78 FRANCHISING WORLD / April 2024

The goal is to have a prospective franchisee make an informed decision before signing a franchise agreement that might be a prospective franchisee’s largest investment – it’s a long-term and expensive investment that goes well beyond the initial franchise fee.

“Responsible franchising” is a two way street; not only by the franchisor but for the prospective franchisees to do due diligence beforehand and not simply rely upon what you think a franchise business model is or that which you have been told by the franchisor or its salespeople. You too need to take some responsibility before becoming a franchisee.

The FDD is all you need and there is no need for a lawyer to read it to me. Wrong! It goes beyond a mere reading – it goes to fully understanding the history and current state of the franchise system and knowing what that legal document called the “Franchise Agreement” (or “License Agreement”) really means. Is there more information or diligence a prospective franchisee should obtain or be doing before signing a long term legally binding contract/ commitment? Indeed there is. That is where an experienced franchise lawyer can be invaluable. As a prospective franchisee do you know how to piece together the information about initial investment costs (including working capital) in Item 7 with the time to opening in Item 11 and understand whether the initial investment is a reasonable estimate of costs and how that ties into the information in Item 19 (if any) to understand when you might expect to break even? Do you as a prospective franchisee know what to look for in Item 20 and as to the financial statements of Item 21?

A good franchise lawyer, one that does it on a daily basis who will know the many nuances of the franchise

relationship can guide the prospective franchisee, as to what further diligence is recommended, what questions to ask, how to properly review and use the FDD for information about the system; and most importantly to advice you about the 25 to 40 page franchise agreement and all of the other ancillary legal documents that a franchisor will require you to sign in order to be become a franchisee.

There is an irony to the FDD where the Franchise Rule requires that the main body of it, Items 1 through 23, be written in “plain English” but not so for the binding franchise agreement. That agreement is laden with all the legalese that many prospective franchisees do not really understand and/or do not understand the ramifications of the legal provisions until it’s too late. It’s not to say that a franchise agreement is a ‘gotcha’ document; but it is a legal document that will be enforced by franchisors and courts and you should understand all its terms and conditions.

You, as a prospective franchisee, might believe that franchise agreements are, “standard,” “uniform,” “written as required by law,” and that “franchisors do not make any changes to their franchise agreement.” All or some of that might be true BUT, that does not mean that one should simply sign until you know what you are signing. Are you aware of all of your obligations? Are you aware of the monetary exposure?

Are you aware of the terms that might prohibit you from being in related businesses not only during the term of the franchise agreement but after? Are you aware of what happens should you be in default and possibly terminated?

A good franchisor actually wants you to have the documents reviewed by a lawyer as a good system wants its franchisees to know exactly what they are entering into. It is not guaranteed success to enter into a franchise agreement – it, like all other business ventures, has risks and one should understand those risks before signing.

A prospective franchisee should not rely upon the FDD to tell the whole story about the franchisor because it only contains so much information. It is a very good starting point, but there are many other things to be concerned with and that’s where a good franchise lawyer is worth every penny.

Franchised businesses can be and are very successful but, like all business ventures, some do fail and “buyer beware” should be every prospective franchisee’s moto. This is why a franchise lawyer should be part of your team and diligence routine.

J. Chernow is the chair of Reger Rizzo & Darnall’s Franchise & Hospitality Practice Groups (with offices in PA, NJ, DE and MD). For more information about IFA supplier member Reger Rizzo & Darnall LLP, please visit franchise.org/suppliers/reger-rizzo-darnall-llp April 2024 / FRANCHISING WORLD 79
Harris

FEATURED FRANCHISEES

The International Franchise Association is proud to celebrate our franchisee members. See below to learn more about some of our Featured Franchisees — why they got into franchising, their unique backgrounds and how they contribute to their local communities.

MARK SNYIR

Mark Snyir, TWO MEN AND A TRUCK Multi-unit Franchisee, Northern California

Mark Snyir is a multi-unit franchisee with five TWO MEN AND A TRUCK territories in the northern California area. He has been with TWO MEN AND A TRUCK for almost 25 years and has been a franchisee for close to 20 years.

“I got into franchising based on the opportunity for expansion and the ability to be in the same business with like-minded peers that could trade off ideas with one another,” Snyir said.

The support system and training TWO MEN AND A TRUCK offered stood out to Snyir when it came to franchising, the other component was growth opportunities. Growth within the TWO MEN AND A TRUCK system was very important to Snyir as he had come

into the franchise as a general manager and worked his way up to become a franchisee.

“Now, as an owner, I am trying to lead by example by moving my own people into ownership positions,” he said.

Snyir did just that recently as he partnered with his director of sales and marketing, Tanya Nickel, as she participated in the Mary Ellen’s Moving People Forward® scholarship program and became a scholarship winner to open her own franchise in partnership with Snyir.

Snyir’s best advice when looking into franchising is to speak with others within the franchise network. “Be honest with yourself and them in what you are looking for and goals that you want to achieve. The feedback you receive can help make your decision easier,” he said

80 FRANCHISING WORLD / April 2024

Bart Williams, House Doctors Franchisee, Somerset, Kentucky

Before pursuing entrepreneurship, Bart Williams was on a fast track to corporate success. Despite a promising career trajectory, the demanding hours of spearheading store conversions during the early days of Walmart began to weigh heavily on his personal life, leading him to prioritize his role as a husband and father over his professional ambitions.

Wendy Johnson, Midas Franchisee, Raleigh, NC

Wendy Johnson is the franchise owner of Midas in Raleigh, NC, the #1 ranked Automotive Repair and Maintenance franchise according to Entrepreneur’s 2024 Franchise 500. Johnson opened her shop in September 2023, and is already enjoying the impact she’s making in the lives of her employees and the customers in her community.

Seeking a change, Williams moved to John Deere, where he provided insurance services for equipment. He also adjusted insurance claims in the aftermath of natural disasters, giving him a front-row seat to the American spirit of resilience and recovery. However, corporate politics and a desire for autonomy eventually drove Williams to consider business ownership during a career transition to control his destiny and leverage his passion for hands-on work.

Williams opened his Somerset, Kentucky House Doctors franchise in 2007, drawn by its flexible business model and the opportunity to apply his skills in construction and service. The franchise’s focus on handyman and home improvement services resonated with his background and personal interests and offered a less restrictive operational model than some of the other franchises he explored. House Doctors is one of the home services franchises under the Premium Service Brands umbrella.

Since opening his franchise, gross sales have continued to increase each year. Williams was named the 2023 Franchisee of the Year for both PSB and House Doctors. “If you deliver quality work and solid customer service, people will come back and use you again,” Williams said. “At least 65 percent of our business is repeat business.”

Williams plans to expand his service territory and is exploring additional opportunities within the House Doctors framework. His location also handles property management for one of the resort communities in his territory.

Johnson is new to the automotive industry, having spent one leg of her career as a scientist working with the National Institutes of Health and ultimately retired from Nestle as a member of the Corporate Affairs team. She was attracted to the Midas franchise opportunity because she was interested in opening a store in an industry that can be rewarding every day. Families are very dependent on a working car. It’s how they get to work to support their family, transport their kids to and from school and to extracurricular activities and more.

Johnson was also drawn to Midas specifically because she found that the company was very forward-thinking and anticipating how business will evolve in the coming years with the introduction of new technologies and the rise of electric vehicles. She appreciated the company’s positive outlook on the possibilities of changes in the industry and that they appeared poised to support their franchisees through those inevitabilities.

As a new business owner, Johnson has already joined the local chamber of commerce. She is excited to network with other business owners and become more involved in the Raleigh community. She hopes to spearhead community events in the future including food and school backpack drives and other activities to help support needs in her community.

FEATURED FRANCHISEES
April 2024 / FRANCHISING WORLD 81
WENDY JOHNSON

FEATURED FRANCHISEES

David Manley, ProLift Garage Doors Franchisee, Amarillo, Texas

David Manley, the entrepreneurial force behind ProLift Garage Doors in Amarillo, Texas, spent 26 years in retail management with giants like Walmart and Kroger in Virginia before becoming a franchise owner in the home services industry.

In 2017, Manley moved home to Amarillo from the East Coast and met his wife, Natascha. Tired of the retail grind, he landed a job at a privately held manufacturing company. The decision to venture into franchising was prompted by Manley’s dissatisfaction with the corporate direction his new job took following a company acquisition. He had a desire for autonomy and wanted to make a meaningful career change.

Seeking a business that promised scalability and support, he opened his ProLift Garage Doors franchise in 2022. He was particularly impressed by the brand’s straightforward business model and low initial investment, allowing owners to get started with just one technician and one truck. The extensive network of support provided by its parent company, Premium Service Brands (PSB), helped make his decision easy.

Manley’s territory, which covers the expansive Texas panhandle, offers ample room for growth. Looking ahead, Manley is focused on achieving profitability with ProLift while exploring expansion opportunities that align with his vision for the business. He is considering adding another one of PSB’s home services brands to his business through brand stacking.

Beyond business, Manley is deeply committed to giving back to his community. Through Kids-Lift, PSB’s non-profit affiliate, he partners with Fill With Hope to organize food drives, supporting children in need in the Canyon Independent School District near Amarillo. Manley was awarded PSB’s first-ever Kids-Lift award at its annual convention for his work helping children in his community.

Matt Black, Benjamin Franklin Plumbing and DRYmedic Restoration Services Multi-Unit Franchisee, Southern Florida

Matt Black’s franchising journey starts from humble beginnings. In 2000, he was hired as a warehouse worker for a plumbing company in Port St. Lucie, FL, to handle purchasing and change orders. Despite his lack of direct plumbing experience, Black quickly grew a reputation for creating systems the plumbers valued and within 90 days, was promoted to service manager. He spent seven years in this role before assuming the general manager position. Concurrently, the company transitioned to a Benjamin Franklin Plumbing franchise, exposing Black to the advantages of operating under the franchise umbrella of Authority Brands. He was drawn to franchising because of its templated business model, streamlined operations and established brand recognition.

In 2019, Black purchased the location from its previous owner, who served as his boss for nearly two decades. Subsequently, in 2023, Black’s interest was piqued by Authority Brands’ acquisition and franchising of DRYmedic Restoration Services, a restoration and remediation brand. Recognizing the synergy between plumbing and restoration services and an opportunity to maximize referrals, he decided to invest in a second business and became the proud new franchise owner of DRYmedic Restoration Services of Treasure Coast, FL. Presently, Black assumes the role of a multi-unit operator, overseeing sales and operations for both his franchises. Despite his novice status in the restoration industry, he’s learning as he goes just as he did with plumbing. Since purchasing his businesses, Black takes pride in the enhancement of company culture and increase in potential revenue streams.

MATT BLACK
82 FRANCHISING WORLD / April 2024
DAVID MANLEY

John Garretson, Lawn Squad Franchisee, Aurora, IL

It’s no surprise John Garretson found his way into the franchising world. As a military veteran, John boasts numerous skills and attributes that make him well-suited for entrepreneurship. Following over a decade of service in the National Guard and Ready Reserve, Garretson explored various career avenues and ultimately gravitated towards business. He initially worked in retail management and simultaneously launched his own lawn care business in 2009 as a side hustle. By 2020, Garretson’s side hustle had blossomed into a thriving, full-time business, prompting him to diversify his business portfolio through franchising.

He began franchising with The Cleaning Authority, a home cleaning service under parent franchisor Authority Brands, in 2023. His early success with the brand, coupled with his desire to expand the services offered by his lawn care company, led Garretson to explore additional business opportunities. It was during this period he was introduced to Lawn Squad, a lawn care company specializing in lawn fertilization, weed control, aeration, seeding and pest management for both residential and commercial properties. Formerly known as WeedPro, Lawn Squad had been acquired and franchised by Authority Brands in 2023.

With 15 years of lawn care experience under his belt and familiarity with the Authority Brands system, Garretson recognized operating a Lawn Squad franchise would prove lucrative. He opened his first Lawn Squad location in Aurora, IL, in March and is set to become the brand’s first multi-unit franchise owner. He is on track to open a second location in Nashville, TN, in 2025.

Chad Rowland, The Brothers that just do Gutters Franchisee, Tri-Cities, TN

Chad Rowland, co-owner with his wife Amanda, stands at the forefront of The Brothers that just do Gutters in the Tri-Cities, TN, embodying the entrepreneurial spirit and commitment to community that are hallmarks of successful franchisees. His journey in this leading gutter contractor service franchise is a blend of professional expertise and a deep-rooted desire to make a meaningful impact in the community.

Chad Rowland, with a robust background in corporate sales and marketing, primarily in the pharmaceutical and medical device industry, brings over two decades of experience to the table. “I spent most of my career in corporate America,” Chad shares. “But franchising intrigued me as it offered a tried-and-true blueprint for success.”

While Amanda, as a co-owner, plays a supportive role, Chad is the driving force behind the franchise. Their shared vision focuses on community engagement, evident in their active participation in local youth sports and church activities. “Our goal has always been to positively impact our community and to build a team that feels more like a family,” Chad emphasizes.

Their choice of franchise was not initially directed towards gutter services. However, upon meeting the leadership team of Ken and Ryan Parsons, Chad and Amanda recognized a special opportunity. “Their vision and values resonated with us. We knew they had our best interests at heart, and their team’s mentality was focused on our success,” Chad remarks.

Chad Rowland’s story with The Brothers that just do Gutters is not just about running a successful franchise; it’s about leadership, community involvement, and realizing entrepreneurial dreams. It stands as an inspiring example of how franchising can open doors to both business success and personal fulfillment.

FEATURED FRANCHISEES
JOHN GARRETSON
April 2024 / FRANCHISING WORLD 83
CHAD ROWLAND

FEATURED FRANCHISEES

ANTONIO MCBROOM

Antonio McBroom, Eric Taylor, Phillip Scotton and Josiah Fisher, Ben & Jerry’s Multi-Unit Franchisees

With a mission to change the trajectory for black entrepreneurs, Antonio McBroom, Eric Taylor, Phillip Scotton, and Josiah Fisher are the brotherhood that make up PRIMO Partners, the only award-winning, black-owned, and largest multi-unit franchise group of Ben & Jerry’s. Beginning in 2008, Antonio and Eric purchased their first Ben & Jerry’s franchise location, making Antonio the youngest franchisee in the system. With a vision to become a vehicle for change, the group continued to recruit rising leaders, adding Phillip Scotton to the team in 2012, and Josiah Fisher in 2016. An unstoppable force, PRIMO Partners continued to expand its empire and now has over 20 award-winning units with Ben & Jerry’s, among other enterprises.

As social entrepreneurs, the goal of PRIMO Partners is to create growth opportunities for people like them through mentoring, coaching and leadership development. Antonio, Eric, Phillip and Josiah are able to provide the tools, resources and education for leaders to be enlightened and to live out their dreams. A large part of this social impact includes various leadership and development programs where they teach people how to hire, train, and personally develop each member of their team, streamline team performance, enhance communication skills, and more.

At the core of the PRIMO mission is building the leaders of tomorrow, and taking every opportunity they have to distribute wealth and knowledge back into the community through numerous charitable endeavors. This includes investing a percentage of their annual revenue every year to various organizations to bridge the generational wealth gap in marginalized communities.

PRIMO Partners, whose team is largely made up of people of color, is a tribe of black entrepreneurs who are rooted in servant leadership, hospitality and growth.

SHANNON RIZZO &

Shannon Rizzo & Jesse Levan, GYMGUYZ Franchisees, King of Prussia, Pennsylvania

Jesse Levan and Shannon Rizzo, owners of GYMGUYZ King of Prussia, Pennsylvania, are on a mission to better lives across their community through kindness, motivation, positive energy, and healthy workouts. Shannon, a Philanthropic Advisor, Humanitarian and Social Change Catalyst with over 25 years of entrepreneurial success, has a philosophy of “rich and radical” living, which emphasizes unconditional love, gratitude, maximized health and wealth, and abundant connection to heart, human beings, and spirit.

Jesse, a dedicated father, motivational speaker and passionate advocate for health and wellness, is the founder of Healthy and Wealthy Dads. On a mission to help create a lasting legacy of health, wealth, and happiness, when Jesse isn’t working with clients in their homes for one-on-one workouts, he empowers fathers to lead balanced lives by sharing insights from his experiences in finances, stock trading and healthy living.

Committed to making a meaningful impact on every client through GYMGUYZ, the leader in home and on-site personal training, Shannon and Jesse’s shared vision of health, wellness, and social responsibility makes them the perfect team to guide individuals toward fulfilling and successful lives. The wellness-focused duo believes that a holistic approach to fitness leads to the best results, as feeling good about yourself on the inside comes first — and is just as important as feeling confident on the outside.

JESSE LEVAN
84 FRANCHISING WORLD / April 2024

IFA’s political action committee, FranPAC, supports pro-franchise, pro-business candidates for U.S. Congress.

Anthony D’Esposito NY

Debbie Dingell MI

Chuck Edwards NC

Tom Emmer MN

Ron Estes KS

Drew Ferguson GA

U.S. House of Representatives

Robert Aderholt AL

Rick Allen GA

Mark Amodei AZ

Kelly Armstrong ND

Troy Balderson OH

Andy Barr KY

Aaron Bean FL

Ami Bera CA

Lisa Blunt Rochester DE

Mike Bost IN

$1,000 Republican

$3,500 Republican

$1,000 Republican

$1,000 Republican

$3,000 Republican

$1,000 Republican

$2,000 Republican

$6,000 Democratic

$1,500 Democratic

$2,500 Republican

Julia Brownley CA $4,000 Democratic

Larry Bucshon IN $2,000 Republican

Tony Cardenas CA

Jerry Carl AL

Troy Carter LA

Buddy Carter GA

Matthew Cartwright PA

Ed Case HI

Lori Chavez-Deremer OR

Juan Ciscomani AZ

James Comer KY

Lou Correa CA

Jim Costa CA

Rick Crawford AR

Henry Cuellar TX

John Curtis UT

Don Davis NC

$2,000 Democratic

$3,000 Republican

$5,000 Democratic

$1,000 Republican

$1,000 Democratic

$1,000 Democratic

$5,000 Republican

$2,000 Republican

$1,500 Republican

$5,000 Democratic

$5,000 Democratic

$1,000 Republican

$5,000 Democratic

$1,000 Republican

$5,000 Democratic

$5,000 Republican

$1,000 Democratic

$1,500 Republican

$5,000 Republican

$2,500 Republican

$1,000 Republican

Scott Fitzgerald WI $1,000 Republican

Brian Fitzpatrick PA $1,000 Republican

Lizzie Fletcher TX $1,000 Democratic

Virginia Foxx NC $5,000 Republican

Andrew Garbarino NY $5,000 Republican

Marie Gluesenkamp Perez WA $2,500 Democratic

Lance Gooden TX $2,000 Republican

Josh Gottheimer NJ $3,000 Democratic

Kay Granger TX $5,000 Republican

Glenn Grothman WI $1,000 Republican

Brett Guthrie KY $2,500 Republican

Diana Harshbarger TN $3,500 Republican

Kevin Hern OK $10,000 Republican

Ashley Hinson IA $6,000 Republican

Erin Houchin IN $2,000 Republican

Chrissy Houlahan PA $4,000 Democratic

Richard Hudson NC $5,000 Republican

Glenn Ivey MD $1,500 Democratic

John James MI $1,000 Republican

Hakeem Jeffries NY $10,000 Democratic

Hank Johnson GA $1,000 Democratic

Mike Johnson LA $10,000 Republican

John Joyce PA $2,500 Republican

Jen Kiggans VA $1,000 Republican

Kevin Kiley CA $5,000 Republican

Raja Krishnamoorthi IL $2,500 Democratic

Darin LaHood IL $1,000 Republican

Nick LaLota NY $5,000 Republican

Nick Langworthy NY $5,000 Republican

Mike Lawler NY $5,000 Republican

REPORT CARD
CURRENT FINANCIAL SUPPORT OF FEDERAL CANDIDATES AS OF MARCH 6, 2024. =
$
Republicans ................$ 417,000 (72%) Democrats .................. $147,000 (25%) Independents ................ $ 13,500 (3%)
FRANPAC’S
2023-2024 Cycle Expenditures:
577,500
April 2024 / FRANCHISING WORLD 85

Laurel Lee FL

Debbie Lesko AZ

Julia Letlow LA

Zoe Lofgren CA

Blaine Luetkemeyer MO

Nicole Malliotakis NY

Kevin McCarthy CA

Lisa McClain MI

Morgan McGarvey KY

Cathy McMorris Rodgers WA

Carol Miller WV

Mary Miller IL

Marc Molinaro NY

John Moolenaar MI

Barry Moore AL

Gregory Murphy NC

Dan Newhouse WA

Donald Norcross NJ

Jay Obernolte CA

Jimmy Panetta CA

Chris Pappas NH

Greg Pence IN

Scott Peters CA

Guy Reschenthaler PA

David Rouzer NC

Steve Scalise LA

Brad Schneider IL

$1,000 Republican

$1,500 Republican

$2,000 Republican

$1,000 Democratic

$1,000 Republican

$5,000 Republican

$5,000 Republican

$2,500 Republican

$4,000 Democratic

$10,000 Republican

$5,000 Republican

$1,000 Republican

$5,000 Republican

$1,000 Republican

$1,000 Republican

$1,000 Republican

$2,000 Republican

$4,000 Democratic

$3,500 Republican

$2,500 Democratic

$2,500 Democratic

$1,000 Republican

$6,000 Democratic

$1,500 Republican

$5,000 Republican

$2,500 Republican

$2,000 Democratic

Hillary Scholten MI $2,000 Democratic

Keith Self TX $1,000 Republican

Chris Smith NJ $1,500 Republican

Jason Smith MO

Lloyd Smucker PA

Pete Stauber MN

Michelle Steel CA

Elise Stefanik NY

Bryan Steil WI

Haley Stevens MI

Glenn Thompson PA

Dina Titus NV

David Valadao CA

Beth Van Duyne TX

Jeff Vandrew NJ

Nydia Velazquez NY

Tim Walberg WI

Brandon Williams NY

Rudy Yakym IN

U.S. Senate

* = candidate for U.S. Senate

*Angela Alsobrooks MD $2,500 Democratic

*Jim Banks IN

John Barrasso WY

Marsha Blackburn TN

John Boozman AR

$5,000 Republican

$5,000 Republican

$2,500 Republican

$4,000 Republican

$7,500 Republican

$1,000 Republican

$3,500 Democratic

$1,000 Republican

$1,000 Democratic

$1,000 Republican

$5,000 Republican

$1,500 Republican

$1,000 Democratic

$6,500 Republican

$6,000 Republican

$1,000 Republican

$6,000 Republican

$5,000 Republican

$5,000 Republican

$2,000 Republican

Mike Braun IN $3,000 Republican

Ted Budd NC

Bill Cassidy LA

Susan Collins ME

$5,000 Republican

$7,000 Republican

$1,000 Republican

Chris Coons DE $3,500 Democratic

Kevin Cramer ND

$2,500 Republican

Ted Cruz TX $1,000 Republican

Bill Hagerty TN $1,000 Republican

Josh Hawley MO $1,000 Republican

John Hickenlooper CO $2,000 Democratic

Mark Kelly AZ $4,000 Democratic

Angus King ME $3,500 Independent

Amy Klobuchar MN $2,500 Democratic

James Lankford OK

$1,000 Republican

Joe Manchin WV $10,000 Democratic

Roger Marshall KS $6,500 Republican

Jerry Moran KS

Gary Peters MI

$10,000 Republican

$1,000 Democratic

Mike Rounds SD $1,000 Republican

Marco Rubio FL $2,000 Republican

Tim Scott SC

Kyrsten Sinema AZ

Dan Sullivan AK

John Thune SD

$5,000 Republican

$10,000 Independent

$1,000 Republican

$10,000 Republican

Tommy Tuberville AL $2,000 Republican

JD Vance OH

$1,000 Republican

Leadership PACs/Party Committees

2024 REPUBLICAN SENATE VICTORY $15,000 Republican

Blue Dog PAC

CHC BOLD PAC

CONGRESSIONAL BLACK CAUCUS PAC

HOUSE CONSERVATIVES FUND

$10,000 Democratic

$5,000 Democratic

$5,000 Democratic

$10,000 Republican

National Republican Congressional Committee $15,000 Republican

National Republican Senatorial Committee $60,000 Republican

New Democrat Coalition

$5,000 Democratic

86 FRANCHISING WORLD / April 2024

WELCOME

NEW IFA MEMBERS

Franchisors

Bigfoot Forestry Franchise, LLC

Rock Hill, SC

Contact: Natalie Dobbs bigfootforestry.com

Captain D’s, LLC

Nashville, TN

Contact: Mr. Hair Parra www.captainds.com

Cartridge World America

New York, NY

Contact: Mr. Greg Carafello, CFE www.cartridgeworldusa.com

DivaDance Company

Austin, TX

Contact: Ms. Jami Stigliano www.divadancecompany.com

Face to Face Spa

Austin, TX

Contact: Ms. Jenny Abraham www.facetofacespa.com

FIELD OPS

Bedford, NH

Contact: Mr. Jack Child www.gofieldops.com

FiiZ

Salt Lake City, UT

Contact: Jeffrey Lentz fiizdrinks.com/franchise

Fitness Machine Technicians

Hickory, NC

Contact: Mr. Don Powers www.fitnessmachinetechnicians.com

Frenchies Modern Nail Care

Littleton, CO

Contact: Mr. Guy Coffey www.frenchiesnails.com

G-FORCE Franchise Group LLC

Bedford, NH

Contact: Mr. Jack Child www.gogforce.com

GNC Holdings LLC

Pittsburgh, PA

Contact: Ms. Sarah Peters www.gnc.com

Hangry Joe’s Franchising LLC

Springfield, VA

Contact: Mr. Chuck Lovelace hangryjoes.com

Icon Restaurant Group - Ford’s Garage

Tampa, FL

Contact: Mr. Davide Ragosa www.FordsGarageUSA.com

JETSET Franchising LLC

Miami Beach, FL

Contact: Ms. Taylor Talcott jetsetpilates.com

Kidokinetics Franchise Corp.

Davie, FL

Contact: Ms. Terri Braun www.kidokinetics.com

MACH ONE Franchise Group, LLC

Bedford, NH

Contact: Jason Andrews www.mach1epoxy.com

Magnetsigns Advertising Inc.

Camrose, AB

Contact: Mr. Lloyd Sehn www.magnetsigns.com

Main Line Brands LLC

Hickory, NC

Contact: Jason Pritchard mainlinebrands.com

Mosquito Authority

Hickory, NC

Contact: Jason Pritchard www.bugbite.com

NPM Franchising, LLC

Woodinville, WA

Contact: Mr. Daniel Webb earthwisepetfranchise.com

PAINT CORPS Franchise Group

Bedford, NH

Contact: Mr. Burgess Perry www.paintcorps.com

RealClean Aviation Services, LLC

Maple Park, IL

Contact: Lucas Goucher realcleanaircraft.com

SEA Groups Franchising, LLC

Las Vegas, NV

Contact: Dave Zheng seafranchise.com

Send Me a Pro

Miami, FL

Contact: Bary El-Yacoubi sendmeaprofranchise.com

Shoot 360 Nation LLC

Vancouver, WA

Contact: Mr. Craig Moody shoot360.com

Summit Building Services

Stow, OH

Contact: Tom Lesiczka summitbuildingservices.com

Taqueria Factory - Fruitlandia

Chandler, AZ

Contact: Gamaliel Garfio taqueriafactory.com

Univista Insurance Franchise LLC

Miami, FL

Contact: Mr. Daniel Trigo univistafranchise.com

Suppliers

‘47 Concepts

Katy, TX

Contact: Arathi Dar www.47concepts.com

Abby Connect

Las Vegas, NV

Contact: Lisa Snyder www.abby.com

Answering Service Care

Margate, FL

Contact: Mr. Logan Shooster answeringservicecare.com

April 2024 / FRANCHISING WORLD 87

NEW MEMBERS

Suppliers (Cont’d.)

Awarity

Frisco, TX

Contact: Danielle Krieg www.awarity.com

The Bond Group

Boca Raton, FL

Contact: Mr. Walter Bond www.peakperformershuddle.com

Butler/Till, Inc.

Rochester, NY

Contact: Ms. Joelle Freeman www.butlertill.com

CBIZ

Denver, CO

Contact: Dan Hamann www.cbiz.com

Design Pickle

Scottsdale, AZ

Contact: Ciara Tejani designpickle.com

DSI Systems Inc.

Kennesaw, GA

Contact: Jose Santiago www.dsisystemsinc.com

Essential Properties Realty Trust

Princeton, NJ

Contact: Kyle Henderson essentialproperties.com

ezCater

Boston, MA

Contact: Genevieve Babineau www.ezcater.com

Flywire

Boston, MA

Contact: Caroline Broms www.flywire.com

The Franchise Firm LLP

Boca Raton, FL

Contact: Mr. Evan M. Goldman thefranchisefirm.com

The Franchise Pros

Alexandria, VA

Contact: Faizun Kamal www.thefranchisepros.net

Garnett Station Partners

New York, NY

Contact: Joseph Solano www.garnettstationpartners.com

Holman Fleet Leasing, LLC dba Holman Small Business Solutions

Mt. Laurel, NJ

Contact: Dave Nemerofsky www.holman.com

HUB International

Chicago, IL

Contact: Allison Kipnis www.hubinternational.com

Hyperlocology

Huntersville, NC

Contact: Caroline Gathagan www.hyperlocology.com

KTA Financial Services

Las Vegas, NV

Contact: Mr. Jonathan Lee ktafinancialservices.com

Leap Brands

Whippany, NJ

Contact: Chris Wunder leapbrands.io

LENSERF & CO. INC

Washington, DC

Contact: Mr. Jean-Claude Fresnel, Jr. lenserfco.com

McKay Advertising + Activation

Tampa, FL

Contact: Mr. Robert McKay www.mckayadvertising.com

NVP Associates, LLC

Menlo Park, CA

Contact: Jordan Siegal nvp.com

Orchatect

Richardson, TX

Contact: Monty Miller www.orchatect.com

PATLive

Miami, FL

Contact: Jackie Gonzalez www.patlive.com

PayWell

Naperville, IL

Contact: Scott Smith www.paywell.solutions

Pulse, LTD.

Chesterland, OH

Contact: Jeffrey Maguire pulsellc.com

redC Business Advocacy

Denver, CO

Contact: Brendan Charles www.redcadvocacy.com

Rocket Clicks

Menomonee Falls, WI

Contact: Tyler Dolph rocketclicks.com

SHRM

Arlington, VA

Contact: Chuck Wurl www.shrm.org

Sports Direct/CETV NOW!

Phoenix, AZ

Contact: Marty McDonald CETVNOW.com

Starheel Ventures, LLC

College Grove, TN

Contact: Mr. Ned Lyerly

StartUp Loans USA

Boise, ID

Contact: Craig Johnson startuploansusa.com

Strategic America

West Des Moines, IA

Contact: Mr. Dave Miglin www.strategicamerica.com

Urso, Liguori & Micklich, P.C.

Westerly, RI

Contact: Ms. Nicole Liguori Micklich www.ulmlawfirm.com

Vena

Toronto, ON

Contact: Danielle Fash www.venasolutions.com

VoiceNation

Duluth, GA

Contact: Ela Bayraktar voicenation.com

Zoominfo

Vancouver, WA

Contact: Garrett Kissel www.zoominfo.com

88 FRANCHISING WORLD / April 2024

2024 Events

The International Franchise Show

April 12-13 | London, England

Partnership event with MFV NSE

MFV FRANCHISE EXPO WEST

April 12-13 | Los Angeles, CA

Partnership event with MFV Expositions/Comexposium

LEGAL SYMPOSIUM

May 5-7 | Washington, DC

IBA/IFA JOINT CONFERENCE

May 7-8 | Washington, DC

MFV INTERNATIONAL FRANCHISE EXPO

May 30 – June 1 | New York, NY

Partnership event with MFV Expositions/Comexposium

Franchise

SMARTer

FRANCHISE CUSTOMER EXPERIENCE CONFERENCE

June 18-20 | Atlanta, GA

Partnership event with Franchise Update Media.

Franchise Expo South

September 6-7 | Ft. Lauderdale, FL

Partnership event with MFV Expositions/Comexposium

IFA ADVOCACY SUMMIT

September 9-11 | Washington, DC

FRANCHISE LEADERSHIP AND DEVELOPMENT CONFERENCE

October 16-18 | Atlanta, GA

Partnership event with Franchise Update Media

EMERGING FRANCHISOR CONFERENCE

November 18-20 | Austin, TX

franchise.org/events

Scan here to learn more about these events and plan your year with IFA!

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.