AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
FranchiseConnect
®
SEP/OCT 2019
VOL 01 ● ISSUE 03
WHY YOU NEED
TO INVEST IN A
FITNESS FRANCHISE Franchise Connect ®
TOP 100 FITNESS
FRANCHISES 2019
PITFALLS OF COMMERCIAL
LEASING TO AVOID
LEGAL ADVICE
The Journey to Franchise
Ownership through Due Diligence
MEET THE PEOPLE BEHIND THE BRANDS
ZOOGA
dlapiper.com dlapiper.com
SHOULDER SHOULDER TO SHOULDER. SHOULDER TO SHOULDER. TO SHOULDER.
dlapiper.com
When it comes to our clients and their business issues, we’re in the trenches with them. When they need practical to complicated problems When it comessolutions to our clients and their business that extend the world, we them. are there. We are issues, we’rearound in the trenches with When they a law practical firm that solutions works ourtheir clients wherever need to complicated problems When it comes to ouralongside clients and business and whenever they need us. that extend around the world, we are there. We are issues, we’re in the trenches with them. When they aneed law practical firm that solutions works alongside our clients wherever to complicated problems and they need us. we are there. We are that whenever extend around the world, a law firm that works alongside our clients wherever and whenever they need us.
Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545 Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545 Richard G. Greenstein, 1201 West Peachtree Street, Suite 2800, Atlanta, GA 30309 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com | Attorney Advertising | MRS000100545
Providing Superior Health Care Programs that will Positively Affect Millions of Lives! Offering A New Opportunity in Revolutionary Health and Wellness Services for Individuals and Organizations. Our franchisees provide services in three vertical markets that are in huge demand today: 1. Medical Support Services Behavioral Health Screenings DNA Testing Nutritional Supplements Weight Loss System Chronic Care Management (CCM) Thermal Imaging 2. Senior Wellness 3. Workplace Wellness
The RX2Live franchise offers an outstanding return on investment for the franchisee and ďŹ lls a critical need in the marketplace. You are in the right place at the right time to position yourself in a unique franchise that is poised for explosive growth.
Judy Cole (757) 323-3798 jcole@rx2live.com http://virginiadc.rx2live.com
where fitness meets fun!
the exciting business of kids yoga! ZOOGA is unique and we believe you will agree that it is one of the most rewarding franchise opportunities for you and your family. We believe our model will be as successful and rewarding for you as it has been for us.
why zooga? ZOOGA offers a proven business model and a system that works. In addition, ZOOGA is the only franchise in the kids yoga market, making this one of the few opportunities to be the first into your market. ZOOGA offers both social and financial rewards that will increase your quality of life beyond most investment opportunities.
ZOOGA YOGA FRANCHISE
(310) 839-3110 11054 Washington Blvd. Culver City, CA 90232
For more information, or to fill out a franchise application visit: www.zoogayoga.com/franchise
We pledge you won’t be disappointed!
COMMERCIAL BUILDING SERVICES NEW BUILD
●
REMODEL
●
UPFIT
ITEK Construction + Consulting, Inc. | 627 Carlisle Dr. Herndon VA 20171 Phone (703) 261-6663 ● info@itekconstruction.com ● www.itekconstruction.com
WHAT'S INSIDE
09
FROM THE PUBLISHER The Fitness Franchise Boom
COVER STORY
Sitki Kazanci
WHY YOU NEED TO INVEST IN A
10
START SMART How Technology and Customers are Shaping the Franchise Model
FITNESS FRANCHISE
By Rick Morgin
12
From Executive to Entrepreneur; How Corporate Skills Transfer to Franchising
By Faizun Kamal
13
I Called Your Franchise
By Nancy Friedman
18
22
MEET THE PEOPLE BEHIND THE BRANDS
LEGAL ADVICE
ZOOGA YOGA
The Journey to Franchise Ownership through Due Diligence
By Lynne D. Shelton, Esq.
24
3 Best Practices for Turning Stress into Success
34
By Mary McHugh
The Power of Personalized Marketing
28
By Melissa Kazanci
How to Maintain a Great Brand Image for your Business
36
By Elizabeth Adams
30
Pitfalls of Commercial Leasing that You Need to Avoid
By Sara Jensen
32
A Strong Bottom Line By Keeping Your Customers in Good Shape
By Chris Conner
DIAMOND IN THE ROUGH Why Invest in an Unprofitable Business?
Franchise Connect
By Holly A Ford
®
TOP 100 FITNESS
FRANCHISES 2019
38
Where to Begin in Exploring Your Options in Fitness Franchising
By Marilyn R Imparato
SEP-OCT 2019 | FRANCHISE CONNECT 7
AMERICA’S BEST BUSINESS OPPORTUNITY MAGAZINE
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8 FRANCHISE CONNECT | SEP-OCT 2019
Feb 08 - 11, 2020 IFA2020 Convention Orlando World Center Marriott Orlando, FL www.franchise.org/events/convention
FranchiseConnect
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VOLUME 1, NO 3, SEP/OCT 2019 1751 Pinnacle Drive, Suite 600 McLean, VA 22102 info@franchiseconnectmag.com www.franchiseconnectmag.com (703) 665-5507 ADMINISTRATION FOUNDER / PUBLISHER
Sitki Kazanci PRESIDENT / CFO
Jackie Harty EDITORIAL MANAGING EDITOR
Elizabeth Adams EDITORS
May 28 - 30, 2020 International Franchise Expo The Javits Center New York, NY www.ifeinfo.com INTERNATIONAL FRANCHISE SHOWS, EVENTS & CONVENTIONS Aug 07 - 09 2019 International Sourcing Fair Gallagher Convention Centre Gallagher Midrand, South Africa www.internationalsourcingfair.co.za Oct 10 - 13 2019 17th Franchising & Dealership Trade Fair CNR Expo Center Istanbul, Turkey www.bemyfranchise.com.tr Oct 16 - 17 2019 Women in Business Expo London, UK Farnborough Int'l Conference Centre www.wibexpo.co.uk Nov 05 - 06 2019 The Global Franchise Market Dubai Int'l Convention Center www.globalfranchisemarket.com Nov 14 - 16 2019 Franchise Expo Frankfurt Frankfurt, Germany www.franchiseexpofrankfurt.com Mar 05 - 07 2020 Feria Internacional de Franquicias Mexico City, Mexico www.fif.com.mx
Sara Jensen David N. Smith Melissa Kazanci Mary McHugh CONTRIBUTING WRITERS In Alphabetical Order by Last Name
Chris Conner Nancy Friedman Holly A Ford Faizun Kamal Rick Morgin Lynne D. Shelton, Esq. Marilyn R. Imparato INTERN
Christina Huang DESIGN / PRODUCTION DESIGN
Creative Edge Design Studio PHOTOGRAPHY + VIDEO
Ibrahim Turk PRODUCTION MANAGER
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Advertising Department (703) 665-5507 info@franchiseconnectmag.com Franchise Connect Magazine, published bimonthly by the Creative Edge, 1751 Pinnacle Drive, Suite 600, McLean, VA 22102. Application to Mail at Periodical Postage Rates is Pending at Merifield, VA, and addititonal mailing offices. POSTMASTER: Send address changes to Franchise Connect Magazine, 1751 Pinnacle Drive, Suite 600, McLean, VA 22102 Creative Edge and Franchise Connect Magazine are not responsible for advertisement content and contributers' articles. © 2019 by Creative Edge. All rights reserved.
FROM THE PUBLISHER
A
The Fitness Franchise Boom
Americans have become increasingly concerned over health and fitness in the last 20 years. Obesity has become a national epidemic. There have been major public health campaigns that have highlighted the connection between weight and diabetes and a whole host of other health issues. This has opened up opportunities for those looking to invest in sports, gym, and fitness franchises. The number of fitness club memberships has soared. With this has come franchise expansion and more different kinds of franchising opportunities. In this issue, we focus on the fitness franchise sector. Our team carefully researched the published information on hundreds of fitness franchises. We have published the "Top 100 Fitness Franchises". The companies are not listed by rank. If you are looking to invest in a fitness franchise, this list provides a starting point for you.
THERE HAVE BEEN MAJOR PUBLIC HEALTH CAMPAIGNS THAT HAVE HIGHLIGHTED THE CONNECTION BETWEEN WEIGHT AND DIABETES AND A WHOLE HOST OF OTHER HEALTH ISSUES.
We interviewed Antonia King, owner of Zooga Yoga for our "Meet the People Behind the Brands" pages. Zooga Yoga is unique in that it is the only yoga studio dedicated to babies, kids, teens, expectant moms, parents, and families. It started out in the Los Angeles area and is now expanding nationwide. Lynne D. Shelton's article on the Legal Advice pages is the first of a three part series. In these articles, she will provide key information on how to evaluate and buy a franchise, along with the steps of due diligence needed to not only begin your journey of business ownership, but achieve it – soundly. Did you know that restaurants only account for about one of the 70 industries offering businesses that are franchised. In the U.S. today. There are franchises in all types of industries, from medical to tax preparation businesses, from doggy daycare and pooper scoopers to senior care, just to list a few. In our next issue, we will focus on "Food and Drink Franchises" If you are interested in this sector, you shouldn't miss our next Franchise Connect Magazine. See you in the next issue.
SITKI KAZANCI / Founder-Publisher
SEP-OCT 2019 | FRANCHISE CONNECT 9
Shaping the Franchise Model If we apply advanced technology, improved customer access, and greater convenience to this industry, we find many new offerings.
T
he franchise landscape is changing quickly. New business opportunities are emerging within traditional industries, creating what we refer to as disruptions. This is good news for both sides of the franchise model. Companies ready for expansion can more easily consider franchising, and entrepreneurs eager to own a business can find a greater range of opportunities. What is causing this shift, this disruption? Simply put it’s due to advances in science and technology. Advances in science and technology are allowing businesses to develop innovative new products, attract a greater number of customers, and provide increased convenience to those customers. What this means is traditional offerings are being broken 10 FRANCHISE CONNECT | SEP-OCT 2019
down into highly convenient and customized products and services consumers can purchase with the touch of a button. The fitness industry is one example
PHOTO BY BRUCE MARS FROM PEXELS
By Rick Morgin
where we see disruption and opportunity. If you think about traditional fitness service offerings, Big Box gyms come to mind. If we apply advanced technology,
PHOTO BY VICTOR FREITAS FROM PEXELS
HOW TECHNOLOGY AND CUSTOMERS ARE
improved customer access, and greater convenience to this industry, we find many new offerings. For example, specialized fitness concepts have developed a segment of the fitness industry known as boutique fitness. Specializing in a specific fitness category such as yoga, indoor cycling, rowing, or stretch and building a studio in an aesthetically pleasing, smaller, and more personable footprint, boutique fitness has grown 450% year over year since 2010. Boutique fitness concepts create an intimate and almost tribelike following. This loyal customer following develops because the franchises operating in this space empower their managers, trainers, and staff. This team utilizing technology creates the customer experience that consumers are looking for in new fitness concepts. Customers can use smartphones to access the app and schedule a workout based upon location and desired time frame. When investigating the fitness industry, potential franchise candidates should find the company whose strengths give them an edge in this field. A company whose strengths are in real estate, labor, marketing and branding, and build-out has mastered the most difficult aspects of opening a franchise location. A dedicated team devoted to real estate who proactively searches for the right location with the right demographics will simplify this part of the process. A company whose track record is in attracting, empowering, and retaining thousands of their fitness instructors will benefit the franchisee in their system. Look for a company that has the highest of brand standards, marketing programs, and guidelines. What this means is that the company provides the bulk of the marketing programs, delivering the brand standard that allows the franchisee
“SPECIALIZED FITNESS CONCEPTS HAVE DEVELOPED A SEGMENT OF THE FITNESS INDUSTRY KNOWN AS BOUTIQUE FITNESS. ”
PHOTO BY WILLIAM CHOQUETTE FROM PEXELS
START SMART
to focus on the customer experience. A brand or company that has a standard footprint has also figured out efficiencies in the build-out process; this reduces a franchisee's time to grand opening. Other examples of change can be found in the beauty and fashion industry, where blow-dry bars, on-call stylists, and gown rentals are disrupting traditional salon and boutique businesses, bringing increased convenience to more customers. The automotive industry has fantastic business models that are industry disruptors and go beyond the maintenance and collision repair businesses. It’s exciting to see this level of disruption across traditional industries. So many new opportunities are emerging
for both franchisors and franchisees. Additionally, just as we are seeing greater convenience for consumers, we are seeing greater flexibility for businesses. More aspiring entrepreneurs can enter the franchise market with varying levels of investment and commitment. w Rick Morgin is a Consultant with The Franchise Consulting Company and alumnus of Santa Clara University. He assists clients with the educational process of researching and selecting available franchise businesses that best suit desired lifestyles and financial goals. The research, qualification, and application service he provides is free; fees are paid by the franchise company when a client opens their business. For more information, email rick@thefranchiseconsultingcompany .com, call/text (925) 324-6371, or visit www. thefranchise consultingcompany.com
SEP-OCT 2019 | FRANCHISE CONNECT 11
PHOTOGRAPH COURTESY SHUTTERSTOCK
FROM EXECUTIVE TO ENTREPRENEUR
How Corporate Skills Transfer to Franchising By Faizun Kamal
Y
ears ago, careers were more of a straight-line path. Corporate America executives used to enjoy 30-year runs with the same company. They retired with pensions and gold watches. Well, those days are long gone. Career paths have turned into winding roads with unexpected twists and turns. In every industry, mid- to senior-level executives get laid off every couple of years. Many are ready for a change but are not sure what to do next. Franchise consultants work with many corporate executives to help determine if franchising is a viable option. Moving from executive to entrepreneur can seem foreign and scary, but believe it or not, there is a lot of overlap. Here I highlight a few initial hurdles and explain why they may not be as daunting as you think. SYSTEMS
Every company has systems and processes and all employees – even high-ranked 12 FRANCHISE CONNECT | SEP-OCT 2019
corporate executives – are expected to follow them. There is a chain of command and processes for submitting reports and expenses, as well as running meetings and completing projects. Business owners have the opposite experience – they are responsible for creating systems and processes for every aspect of their businesses. It’s exhilarating for some – not so much for others. A franchise can be the perfect compromise. You enjoy the independence, freedom, and profitability of entrepreneurship, but you get to take advantage of operating systems that have already been proven to work. RISKS
Being an employee always seems like a safer option than being a business owner. But the truth is there are risks on any job front. As an employee, the biggest risk is job security. Economic changes, industry disruptions, or a difficult manager can all lead to job loss. Often, these factors are out of your control. Compared to a corporate position,
IT’S MUCH LESS RISKY THAN A START-UP BUSINESS BECAUSE A FRANCHISE ALREADY HAS A PROVEN BUSINESS MODEL
franchise ownership lets you call the shots. It’s much less risky than a start-up business because a franchise already has a proven business model, significantly reducing your risk of failure. True, your risk in any business will never be zero, but is anything in life totally risk free? SALES
In corporate America, you don’t have to be in sales to sell. In fact, you have to sell your skills over and over again – at job interviews, as positions evolve, as companies merge, as new managers come in. Selling yourself is never-ending. Turns out, this skill transitions naturally to franchising because every franchise owner is ultimately a salesperson. You are responsible for marketing and generating new clients for your business – not merely focusing your time on what your business offers. As a franchise owner, you have to become comfortable with a variety of sales and business-generation techniques, including cold calling, referral marketing, and networking. But you’re not in it alone. Robust franchises provide helpful training before you open the doors to your business. Franchising may be very different from corporate America, but they do have a lot in common. Either can lead you to financial freedom; it just depends on how you want to get there. w You can find Faizun Kamal's new book at Amazon. Excerpted from The Right Franchise for You: Escape the 9 to 5, Generate Wealth, & Live Life on Your Terms. Faizun Kamal is a bestselling author, nationally renowned public speaker and career strategist. As a Franchise Coach. Faizun helps people make the transition from employee to entrepreneur. Contact her at (443) 604 6276 or email Faizun@ thefranchiseconsultingcompany.com.
I CALLED YOUR FRANCHISE Wow. Not all terrible. But help is needed. Here's a start. By Nancy Friedman
I have an assignment for you.
If you have never called in to ask for yourself, a service, or a product at your own franchise, I highly recommend that franchisee managers call their own franchise to hear how their customers and potential customers are being handled.
We cannot fix what we do not know. We must call in and find out what is going on in our business. This is not rocket science. It is plain old common sense.
the call to get the answer? Then why do they say, “How can I help you?” in the greeting. It’s USELESS if the person answering cannot help the caller, isn’t’ it? If the person answering the call cannot answer the question promptly and correctly every time, we strongly suggest NOT using “How Can I Help you?” in the initial greeting. They are there to help. That’s why they answered the phone.
Are you wondering: What questions should I ask?
A few sample questions for you on a mystery call would be: There are folks who tell me, “Well, Nancy, • Where are you guys located? This will tell you a lot. I had one lady yell they’ll recognize my voice.” Maybe they will -- if you call in for someone out to a coworker: “Hey Bob, where are else -- but if you call in and ask for yourself…. we?” Yes, it happened to me. I do it all the time. I call my office, and say, • Hi, how much is a (product, service) “Is Nancy there?” and trust me no one has This is critical. Those locations that answer ever said, “That you screwing around, Nancy?” with a price right off the bat are in big They may think it, know it, or suspect if. But trouble. Because the customer will usually they will never take the chance. say, “Ok, thanks very much.” The franchiAnd if you do happen to have a recognizsee answer is usually, “You’re welcome.” able voice. let a team player do it for you. Be Hundreds of thousands of your marketing on the speaker phone. Get on an extension. dollars are lost with this one. Record it so you can hear later. And if you • Start off with a complaint. need or want to, let the person who answered And see how it’s handled. A soft complaint. it ineffectively hear it. Then TRAIN, don’t Nothing huge. We’re not trying to make it complain. impossible for your folks to answer. We are Don’t make your questions too convoluted. trying to help with the simple, common A simple question to the person who answers sense questions your customers and will tell you a whole lot and what you need potential customers will ask. to do to fix the problem. There are dozens of easy questions to ask Does your first responder need to transfer your customers. Many franchisees fail, and
they don't need to. With a little bit of soft skills training, it all can be fixed. My goal here is to bring the concern to you – so you’re aware. At my conferences, I always ask the audience: “How many of you call in to your own office, to see how your customers are being handled?” I’m often amazed at the number of franchisees that do not call in and find out how their customers and potential customers are being handled. One of the best favors I can do for you is tell you to call into your own locations. The answer to many of the people problems at any location, office, store, or wherever is training. On-the-job training isn’t training. It’s refreshing. And if the person has never had training to start off with, on-the-job training isn’t as effective. Sometimes I feel as though I’m preaching to the choir, but like most things, we need to hear some things over and over.
Thank you for the opportunity to help you. w
Nancy Friedman, a former franchisor, is founder and president of Telephone Doctor Customer Service Training in St Louis, MO. Telephone Doctor helps companies communicate better with their customers and coworkers. Nancy is a popular keynote speaker at franchise conferences and corporate meetings around the country. The author of nine books, Nancy has appeared on Oprah; Fox News; CNN; Today Show; CBS This Morning; Good Morning America, Great Britain, Australia; and many other radio and TV shows and media outlets. She can be reached at nancy@telephonedoctor.com, at www.nancyfriedman .com, or 314-291-1012.
SEP-OCT 2019 | FRANCHISE CONNECT 13
WHY YOU NEED TO INVEST IN A
FITNESS FRANCHISE Americans are becoming increasingly concerned over health and fitness, and this trend has become an opportunity for entrepreneurs to invest in sports, gym, and fitness franchises. Over the past five years, the fitness franchise industry has benefited from public health campaigns that brought awareness about obesity, diabetes, and other health issues. As the public grows increasingly conscious of these facts, the number of fitness club memberships has soared. This larger demand has encouraged franchise expansion, and in response, many franchisers have, in a bid to create larger customer bases, offered more franchising opportunities.
14 FRANCHISE CONNECT | SEP-OCT 2019
OVER THE PAST FIVE YEARS, THE FITNESS FRANCHISE INDUSTRY HAS BENEFITED FROM PUBLIC HEALTH CAMPAIGNS. AS THE PUBLIC GROWS INCREASINGLY AWARE OF THESE FACTS, THE DEMAND FOR FITNESS FRANCHISES HAS RISEN.
COVER STORY
SEP-OCT 2019 | FRANCHISE CONNECT 15
GYM AND FITNESS MARKET GROWTH
WHY YOU NEED TO INVEST IN A
FITNESS FRANCHISE
The United States holds the largest health and fitness market share with 38,477 gyms with health and fitness clubs, growing at an annual rate of 3.6%, and the industry revenue growing at a slightly higher rate of 6.1% currently. Many of these clubs come under the umbrella of 1,800 fitness franchises located in the United States.
HEALTH AND FITNESS DEMOGRAPHICS
According to the most recent report on Statista, Americans on the whole spent 5.27 THE FITNESS FRANCHISE hours a day on sports and leisure activities in 2018. Based on ethnicities, black Americans BOOM In the United States, gym and health and fit- were seen to spend more time working on ness franchises account for an estimated $34 their health and fitness at 5.73 hours a day. billion, and since 2013, has been among the They are followed by white Americans, who top ten fastest growing franchise categories. spend approximately 5.28 hours, and HispanIn 2018, the International Health, Rac- ics and Latinx, who spend 4.82 hours. quet and Sportsclub Association reported that the industry has been growing at a steady GYM MEMBERSHIP average rate of 5.2% annually since 2013 STATISTICS and shows no signs of slowing down. In fact, With the fitness industry booming, a signifithe fitness franchise industry is expected to cant improvement has been seen in gym maintain its growth trajectory through 2023. member statistics:
16 FRANCHISE CONNECT | SEP-OCT 2019
• About 20.8% of Americans have at least one gym membership, and experts estimate the number will double in the next decade. • In 2018, actual visits to the gym increased by 6.1 billion, which is a record high for the United States. • In 2018, the number of gym and health club memberships in the United States grew to 62.5 million — a rise from 60.9 million in 2017 — which contributed significantly to the industry growth. Many of these belonged to both traditional and boutique-style facilities. • Health and fitness club members use a club or studio for an average of 104 days per year. • Although the fitness club industry has a reputation of a high turnover rate, its average retention rate is 72.4 percent. • In 2018, Americans spent $33 per month on gym memberships. • One gym member spends an average of $517 on membership each year. These stats show that there is a lot of potential for even more growth, and gyms, sports, and health and fitness facilities need to step up and convince more people to join.
SPENDING ON SPORTS
The sporting goods market is a billion-dollar industry in the United States. Americans spent $56 on health supplements, $35 on athleisure clothing and accessories, $17 on health-conscious meal plans, and $14 on personal trainers in a month. This means an average American spent $155 on their personal health and wellness. Sales from sporting good stores account for $47 billion annually. In fact, in 2015, sporting good sales amounted to $64.8 billion. These items include athletic clothing, footwear, sports merchandise, and exercise equipment, but do not include recreational products like bicycles, RVs, snowmobiles, and pleasure boats.
IN 2018, AMERICANS SPENT $33 PER MONTH ON GYM MEMBERSHIPS
significant increase in capital. For example, if a fitness franchise has been proven to be successful with 1,000 members, it becomes easier to expand it to 5,000 members without too much working capital. By starting a franchise, you don’t just get the benefit of a well-known brand but one that has a successful business model. 3. The Fitness Industry Is Growing. As mentioned above, the fitness industry is growing at an unprecedented pace and entrepreneurs can take advantage of the growing demand. Personal training and visits to the gym are fast becoming a necessity and not a luxury. This means there will be no shortage of demand any time in the next several years.
WHY YOU NEED TO INVEST IN THE FITNESS FRANCHISE IN THE US
4. Fitness Brands Are Relatively Less Expensive. Compared to several other franchising concepts, including the hospitality management industry, health and fitness franchises are typically less expensive. A franchiser can make an investment in small boutique gyms or fitness centers with as little as $50,000. On average, the initial investment cost for a fitness franchise is around $319,688, which is still less than other franchise options.
1. Fitness Franchises Are Market-Ready. One of the biggest advantages of starting a franchise is that most of the brand-related marketing is already built. All you need to do is to start your franchising effort rather than build your brand from scratch. When you already have an established brand, your fitness franchise only has to follow its rules, making client acquisition much easier. This allows club owners to focus on retaining their older clients, acquire new clients, and provide a unique health and wellness experience.
5. Fitness Clubs Have Recurring Revenues. One of the biggest incentives to invest in a fitness franchise is that health and wellness clubs generate recurring annuity-like revenues. In many other businesses, once customers pay for a product or service, they don't have any other financial commitment. However, when it comes to the fitness industry, members have to pay a monthly fee, irrespective of club use. Although a large number of people join a fitness club only for a short period of time, a higher percentage pay their monthly fee faithfully and visit the club month after month. For franchise owners, a consistent income source is one of the best deals when it comes to investing in a fitness franchise. The health and fitness industry is one of the most pivotal franchise opportunities, particularly with the increased awareness of staying fit. You can take advantage of this unprecedented demand by dipping your toes into a fitness franchise. w
In the United States, the fitness franchise results in a job for 60,000 people and more than 7,200 operations. In the past decade, membership and revenues have nearly doubled, and the industry shows no signs of slowing down any time soon. So, if health and wellness are your priority, investing in this franchise can be extremely lucrative for you.
2. Fitness Franchises Have a Proven Scalable Business Model. Once your fitness club is proven on a small scale, it can easily be expanded without a
ATHLETES INVESTING IN FITNESS FRANCHISES Professional athletes are actively investing in fitness franchises. Former Major League Baseball player Alex Rodriguez is a UFC Gym franchisee, who invested in the franchise because he wanted to prepare for life after baseball. Former heavyweight champion Mike Tyson also came up with the boxing franchise Mike Tyson Academy, which advocated stress management. It should also be noted that athletes who have ventured into the fitness franchise industry have to perform due diligence before operating their businesses. To help them out, National Football League player Michael Stone cofounded the Professional Athlete Franchise Initiative (PAFI), which educates professional athletes to understand the world of franchising.
SEP-OCT 2019 | FRANCHISE CONNECT 17
MEET THE PEOPLE BEHIND THE BRANDS
Zooga Yoga offers a proven business model and a system that works. In addition, Zooga is the only franchise in the kids yoga market, making this one of the few opportunities to be the first in the market.
Where fitness meets fun! By Christina Huang
an executive producer in film and television program for kids and family. The name Zooga for more than 15 years with an emphasis on was created by blending together “zoo” and ooga Yoga is the brainchild of Antonia youth content, including a variety of animated “yoga.” Many of yoga poses are animal names, KIng. It is the premier kids franchise feature films for Pixar, Disney, Fox, and Sony, especially when teaching yoga to kids! Today, I continue to run my Los Angelestoday in the US. It is the only yoga as well as writing, directing, and producing studio dedicated to babies, kids, teens, programming for MTV. -based studio, while working to expand However, my passion for the arts started Zooga Yoga across the US. Along with my expectant moms, parents, and families. It started out in the Los Angeles area and is well before that. I had a lifelong love of dance company-owned studio in Culver City, I curnow expanding nationwide. and performance. My background includes rently have two franchises in West Hollywood childhood ballet, contemporary dance, musi- and Redondo Beach. In my free time, I concals, and the occasional TV and print acting tinue to practice yoga, enjoy seeing movies Antonia, tell us about yourself and job. As an adult, I studied dance, Pilates and with my husband, having lunch with friends, how you came up with the Zooga yoga for more than 20 years with some of and playing sports mom to my three kids, idea. I am the founder and owner of Zooga Yoga, Los Angeles’ best yoga instructors, including Hudson, Mila, and Oliver. With my husband mother of three, wife, television and film Bryan Kest and Steven Earth. In addition, I am Chris, we are truly living our dream being producer, businesswoman, and entrepreneur. certified as a children’s yoga teacher. entrepreneurs, parents, and students of life, In 2012, I combined my love of children, always trying to learn and be better – the After graduating from the University of Southern California with a BA in Film/Television yoga and entertainment to create Zooga same philosophy that will continue to fuel (Magna Cum Laude), I enjoyed a career as Yoga, a unique brand of yoga studio and yoga my entrepreneurial success. Great teachers are at the heart of all success, both business and personal.
Z
How long did it take to get Zooga to the franchise market?
It took four years from inception to take Zooga to the franchise market. From the beginning, I was looking to expand our brand and create a nationwide company. My influences were successful producers in the entertainment industry. I was trained to see the big picture, and that is exactly what my mission with Zooga is. After opening the doors in 2012, I quickly learned the need for a kids’ yoga and a family center was a desired and appreciated commodity in our community. Within one year, the classes were packed. We were doing mobile units in schools all around Los Angeles 18 FRANCHISE CONNECT | SEP-OCT 2019
and we were growing rapidly. We knew we had something special. Within three years of opening, we were asked to go on the TV show Shark Tank. The goal for going on the show would have been to gain funding and a strong, experienced partner to help grow a national franchise. To prepare for the show, I researched franchise companies and hired iFranchise to consult. After much thought and research, it became apparent to everyone involved that we had a great business model for franchising. We also realized the cons of giving up what would have inevitably been a huge portion of our business far outweighed the potential upside of our appearance, and we decided against Shark Tank. Instead, using the profits from my current studio, I hired a franchise consultant and registered Zooga Yoga as the first nationally available kids yoga studio. In 2016, I was officially a franchise, and on that exact date, I sold my first franchise!
quality control. The challenges are limitless, but I think that is why people like me and my franchisees get in the game. The greater the challenge, the greater the rewards.
What mistakes have you made and learned from?
One mistake that I made in the beginning was not managing initial expectations of the franchisee better. It is easy for our excitement to boil over and cause a new franchisee to think the path is going to be paved with roses. Setting a professional tone for your franchisee relationships and creating hard, logical goals is a must. With two franchises under my belt, we have now created a better onboarding process for managing franchisees, their expectations, and what it takes to mentor a franchisee to success.
floating bamboo floors, energy efficient LED lighting, and low volatile organic compounds paint. Zooga Studios are bright, fun, and creative! Zooga not only offers our signature Kids Yoga classes, we offer a variety of classes for all ages including Kids Dance, Kids Music, Parent and Me fitness, Messy Arts, Soccer, Kickin’ Ninjas, Baby Sign, Teen, Adult, and Pre-Post Natal classes. If that’s not enough to keep you coming back for more, we offer specialized parenting workshops, babysitting drop-off nights, studio and home privates, kids teacher trainings, and school and camp programs too. Plus, you can plan your next celebration with us! We provide unique,
What is unique about Zooga?
Zooga Yoga opened as the only yoga studio in What were the main challenges? the Los Angeles area dedicated to babies, kids, As an emerging franchise, we are still learning teens, expecting moms, parents, and families. every day. Some of the biggest challenges are Today Zooga Yoga is the ONLY premiere kids taking it slow and maintaining brand stan- franchise available in the United States. What dards, learning the franchise business, not makes us unique is our branded experience, expanding too quickly, and qualifying the atmosphere, and our products. Zooga has a best candidates for ownership. We continue playful and unique approach to yoga. Zooga to always do research on our space in the couples traditional yoga poses and elements industry, create new materials and products, with fun themes that include animal poses, and strive to be the best-managed and most animal adventures, games, and props to profitable franchise we can be. I never stop create a specialized brand of YogaPlay. This putting time and creativity into the business approach is designed to foster confidence, model, and it can be challenging to stay one creativity, and imagination while keeping true step ahead at all times, but that is what we to the goal of whole mind and body health require of ourselves to know that we are not that is inherent in the practice of yoga. This just the first but always the best. There is combination of process, learning, and fun is definitely a learning curve to being a business our unmistakable brand. owner of any kind, learning about real estate, Zooga’s locations are also eco-friendly, feacontracts, national and local law, marketing turing green building techniques, including ideas, leadership, being an effective boss and recyclable materials, acoustic ceiling tiles, SEP-OCT 2019 | FRANCHISE CONNECT 19
one-of-a-kind birthday parties, baby showers and group private parties– at the studio and at your home or location of your choice. In addition to classes available for all ages, Zooga also offers a kids yoga retail component, including many Zooga-branded products only available from Zooga. Yoga mats, yoga cards, CDs, DVDs, books, apparel, tote bags, eye pillows, and water bottles are just some of the items available. Our mission is to inspire fun and promote fitness for kids and families through yoga and much, much more. Created and perfected at our flagship location in Culver City, California, our approach is completely unique! Guided by yoga principles and designed for maximum entertainment, Zooga Yoga is truly one of a kind. Our Om is your home.
Who is your target audience?
Our target audience is kids and families. Zooga is a multifaceted mind-body fitness studio catering primarily to children ages zero to 18.
How many franchisees do you have now?
We currently have two franchisees and one company-owned location, all in Southern California.
How do you select franchisees and locations?
During the selection process, we carefully select prospects with like-minded visions who have a desire to cater to kids and families in a healthy environment. We are looking for passionate, caring, patient, and creative people who can absorb the details or our business from our training and manuals and recreate it in their hometown. We often find wonderful candidates who have a career, then after having children, find themselves looking for a new, more fulfilling opportunity in life, something that allows them a more manageable life/work balance and a more flexible schedule. Since this is an owner-operated franchise, we are looking for prospects with work experience who can multitask, enjoy the studio environment, with rigid attention to details, and demeanor that keeps clients happy and coming back again and again.
Do you provide any training for the new franchisee?
Zooga Yoga offers a proven business model and a system that works. In addition, Zooga is the only franchise in the kids yoga market, making this one of the few opportunities to be the first in your market. Zooga offers both social and financial rewards that will increase your quality of life beyond most investment opportunities. ● As a franchisee, you will be given all the tools to duplicate the system— the 20 FRANCHISE CONNECT | SEP-OCT 2019
●
●
● ●
training, the name, use of the trademarks, the market research, and the support to maximize your success in every facet of the business. We will assist you in picking the best location(s) in your desired territory and help you design and use your space to its maximum effect. Immediately upon signing the franchise agreement, you will have access to not only the system and policies but our strategies and guidance as well. We take your success personally and will provide preferred vendor lists, personal assistance, and advice in every area of your business. You will have continued access to our growing list of retail and service products. You will enjoy the benefits from our name recognition and marketing experience. You will be part of the Zooga network of successful franchisees.
What are your plans for the future?
Zooga Enterprises has a lot of exciting plans for the future. We are working on a new online platform, bringing Zooga into homes across America, which will raise brand awareness. We are developing new Zooga-branded products and curriculum, and we plan to open 10+ locations in the next two to three years. Next steps after expanding nationally are to hit the international market, where we are already gaining interest. Soon Zooga will be a household name. Namaste! w
For more information: (310) 839-6642 info@zoogayoga.com www.zoogayoga.com/culvercity
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THE JOURNEY TO
Franchise Ownership through Due Diligence By Lynne D. Shelton, Esq.
A
mericans all over the country dream of owning their own business. Many look to franchise ownership as a way to realize this dream while reducing the start-up risk and expense. This three-part series will provide key information on how to evaluate and buy a franchise, along with the steps of due diligence needed to not only begin your journey of business ownership, but achieve it – soundly. For anyone unfamiliar with franchising, you should understand some of the terminology before getting in too deep. This is especially important in this industry, because they use a lot of jargon and abbreviations. First is the term franchisor (commonly shortened to “Zor”). In your journey to franchise ownership, you will learn that a good franchisor is a successful business person who sells a model of his or her success, so that others, like you, may reap the benefits
22 FRANCHISE CONNECT | SEP-OCT 2019
of their experience, business savvy, time, and financial investments, and even their failures, thereby allowing their franchisees to avoid the learning curve of mistakes. Next is franchisee (commonly shortened to “Zee”). This should not be thought of simply as the person who buys a franchise and follows the franchisors rules. The purchaser is more than that. As a franchisee, you truly are an entrepreneur who buys a business from another entrepreneur, the franchisor, who has created a successful, proven franchise system, creates jobs in the local economy and builds a career for themselves and a vehicle for their own financial future. Lastly is the infamous franchise disclosure document (commonly shortened to “FDD”). Although it can be an intimidating document, the FDD is a sales and analysis tool required by both state and federal laws. The FDD legal document is required by law to be provided to you at least 14 days before the franchisor is allowed to accept any money or signed
agreements, such as the franchise agreement or an area development agreement. The FDD will set out how much the franchise will cost, what your roles and responsibilities will be, and what the franchisor must do to help you during the franchise relationship. Now that you understand the terminology used, it’s time to look at why you should consider owning a franchise. Many people don't understand the power of franchising. Franchising as an industry does more for the U.S. economy and job rate than any other industry. Although helping the economy and job rate is a noble cause, most people go into business for themselves to be their own boss, have job stability, or build something to benefit themselves and their families. Franchising is a great vehicle
“MANY PEOPLE DO NOT UNDERSTAND THE POWER OF FRANCHISING. ”
PHOTOGRAPHS COURTESY RIDO
LEGAL ADVICE
With the average franchise term being 10 years, you must choose a franchisor that you're compatible with.
to make this happen. franchise to others; and if they could do it During your search for a franchise, you all over again, would they? And don’t forget should remember three rules: First, make to ask the follow-up question behind each sure the franchisor really does have a proven “Why?� For example, if they would not do it system that works. Second, make sure that again, why not? Their reasons could cause you are compatible with that system. Third, no trepidation in you at all, such as, "It was make sure you will enjoy following and oper- my husband's dream, and we got divorced." ating the system for as long as you intend Those sets of facts should not have a negative or deal-breaking influence on whether to own the business! you should buy the franchise.
Proven System
One way to determine whether the system works is to talk with other franchisees of that business. By law, the franchisor is required to list within the FDD the existing franchisees with their contact information, along with an additional list of former franchisees, who have left the franchise system. You should take full advantage of this list; this is where your due diligence comes in. Contact many of the franchisees, and ask them questions, such as what their opinion of the business is; whether they would recommend owning this
Compatibility with the Franchise System
With the average franchise term being 10 years, you must choose a franchisor that you're compatible with. How do you know if you're compatible with this franchisor or the franchise system as a whole? You take a compatibility test. A great number of franchise systems have their own franchise personality/compatibility test. If the system that you are looking at does not have one, feel free to take ours from the author's website.
Operational Enjoyment
With the average franchise term being 10 years, you must choose a franchise system or industry that operates a business that you will enjoy operating for the long term. That is, do you intend to be a full-time operator of the business, also known as Owner-operator in the franchise industry? If you're not going to be an owner-operator, you should ask yourself if this is going to be a business that you will be proud to own, and are you qualified to hire the type of managers needed to run the business on a daily business? However, you should also keep in mind that if a manager quits or is off work for vacation or due to illness, there is a possibility that you could need to step into the daily operational role until the manager returns.
Cost/Benefit Analysis
With the above rules in mind, you should perform a cost/benefit analysis of the franchise or franchises you are considering. During SEP-OCT 2019 | FRANCHISE CONNECT 23
PHOTO BY RAWPIXEL.COM FROM PEXELS
your analysis, consider whether the cost of that particular franchise is worth it. Look not only at the cost of the franchise fee, but also at the total investment necessary to get the franchise open and operating. Make sure it is not more than you can realistically handle on your own, which we will cover in more detail in our next issuei. You must also consider your lifestyle and family in your cost/benefit analysis. Almost all franchises will require that you attend training at the franchisor’s location for several days to several weeks depending upon the franchise system. Ensure you can afford to be gone from your family or even your “day job” for this time period. Additionally, owning and operating a franchise will bring new roles and responsibilities to your life. During your self-analysis, make sure that you are prepared to handle the additional responsibilities such as bookkeeping, payroll, regular communications with and reporting to the franchisor, hiring and firing, advertising and marketing, the overall day-to-day operations of running the business, and all other roles that may be applicable. If you
are not strong in one of these areas, do not worry because there are franchise systems which allow you to hire managers to help with some of those roles.
Types of Franchises
Now that we have a general idea of the roles to be played in a franchise, you need to consider the types of franchises available to you. Within all of franchising you will encounter two classes of franchises, the business format franchise and the product distribution franchise. Each format requires its own set of requirements and skills. In the business format franchise, you will use the franchisor’s trademark, trade name, or service mark and be required to distribute the brand's products or services. You will additionally receive the methodologies and procedures that are necessary for the successful operation of the franchised business, unlike in a product distribution system. A majority of the franchises that are purchased now are classified as business format franchises. Not as common is the product distribution franchise which can include gas stations
i Financial realities. Last visited July 10, 2019. https://www.frandata.com/case-studies/ ii United States Census Bureau. Last visited, September 11, 2019. https://www.census.gov/data/tables/2017/econ/cbp.html
24 FRANCHISE CONNECT | SEP-OCT 2019
and car dealerships. Product distribution franchises require that you distribute the brand's products and services, but normally do not require or may not offer the use of the trade name or the trademark. For example, there is a popular BBQ restaurant in Texas that also contains a gas station selling a popular brand of gasoline. Most people, when asked to name a franchise, automatically think of popular fast food restaurants; but what most do not know is that restaurants only account for about one of the 70 industries offering businesses that are franchisedii. In the U.S. today, there are franchises in all types of industries, from medical to tax preparation businesses and from doggy daycare and pooper scoopers to senior care, just to list a few. Additionally, there are franchises that require commercial or retail leases and those that you can run from your home office. With more than 70 different industries to choose from, there is a franchise out there to suit the needs, desires, and skill sets of any would-be business owner. w In upcoming articles, I will take these discussions further and give you the tools necessary to further analyze yourself to find out whether you are fit for the franchise life. You will also learn what additional steps are needed to complete your journey to becoming a franchise owner. Lynne D. Shelton in a previous life was a franchisor of a large franchise system, and is currently a senior attorney for Shelton Law & Associates franchise law firm. Shelton Law & Associates' (SLA) attorneys have 50+ years’ business consulting, franchise, and trademark experience. Their knowledge facilitates an understanding of a large variety of businesses, services and technologies. They help businesses protect their brands through trademark, copyright, and business contractual transactions. These services allow SLA to “Expand their Brand®” through Franchising. For franchisors, SLA provides full outsourced in-house counsel. SLA additionally works with entrepreneurs buying franchises by assisting with business creation, industry evaluations, franchise disclosure document review, fairness factors, opinion letters, and negotiations. For more information or to schedule a customized consultation for your business, you can write to franchising@SLA.Law or call (866) 99-FRANCHISE.
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2010 2013 1998 2017 Oct. 2015 2011 2004 2012 2011 2008 1990 1969 2004 2001 2007 1992 2010 2010 2003 2014 2015 1976 2008 2005 2017 2007 2000 2008 2010 2008 1998 2012 2010 2008 2009 1997 2008 1990 2004 1999 2013 1984 2010 2009 1991 2001 2001 2016 2004 2000 2008
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2003 2001 1965 2012 2008 2009 2013 2012 2010 2015 2008 2010 2004 2010 2010 2008 2011 2012 2006 2012 2014 2011 2011 2013 2018 2011 2002 2014 2014 1965 1992 2009 2009 2002 2007 1983 2004 2009 2012 2007 2015 2007 2013 2017 2007 2003 2009 2013 1999
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2018 2005 1980 2015 2009 2018 2015 2015 2018 2017 2017 2010 2013 2016 2016 2011 2017 2012 2007 2016 2015 2013 2014 2017 2018 2016 2006 2015 2017 2013 2004 2011 2011 2011 2011 2008 2018 2015 2018 2012 2015 2009 2014 2017 2017 2004 2011 2018 2005
$487,600 - $965,400 $6,205 - $24,285 $2,218,250 - $5,000,500 $64,650 - $142,300 $162,808 - $478,925 $280,000 $1,495,930 - $3,640,400 $142,330 - $349,150 $162,961 - $274,302 $169,275 - $248,125 $152,000 - $504,000 $563,529 - $999,121 $34,000 - $99,765 $263,982 - $725,737 $167,000 - $326,500 $136,273 - $466,483 $423,480 - $920,800 $84,600 - $292,900 $71,412 - $172,675 $142,000 - $343,500 $93,800 - $566,500 $146,868 - $295,592 $61,150 - $87,300 $276,852 - $472,128 $199,850 - $566,300 $16,000 - $29,350 $944,250 - $1,592,500 $319,150 - $497,200 $257,700 - $400,800 $860,500 - $1,483,500 $151,000 - $4,217,000 $115,445 - $213,298 $136,000 - $198,000 $577,708 - $1,201,802 $411,850 - $647,750 $89,900 - $197,600 $125,100 - $184,900 $261,270 - $365,520 $283,300 - $452,800 $167,967 - $280,446 $173,250 - $521,000 $99,675 - $143,075 $310,600 - $626,200 $230,000 - $437,500 $225,335 - $354,300 $149,771 - $462,800 $259,100 - $363,000 $44,050 - $90,650 $555,500 - $996,400
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(619) 795-9712 (630) 460-9330 (636) 326-4111 (646) 450-2405 (651) 204-0560 (702) 706-1155 (702) 982-2930 (704) 763-7533 (716) 427-3143 (720) 464-6333 (720) 580-4272 (732) 640-5480 (757) 870-4488 (760) 505-4160 (760) 590-6466 (772) 529-0108 (773) 360-8228 (778) 549-4717 (781) 812-2870 (800) 421-5850 (800) 598-8872 (800) 670-0263 (801) 755-9825 (801) 784-4446 (833) 629-9328 (843) 324-6623 (845) 920-1998 (847) 867-9322 (857) 702-2769 (858) 217-3920 (877) 283-2496 (888) 524-4047 (888) 638-3222 (888) 827-9262 (904) 374-4725 (913) 725-0777 (914) 302-2022 (928) 225-9707 (949) 346 9794 (949) 346-9794 (949) 379-3060 (949) 522-1188 (949) 679-0872 (951) 310-8322 (951) 501-6070 (952) 474-5422 (952) 873-7900 (954) 790-3551 (972) 672-3830
www.lastrealgym.com www.fit4mom.com www.goldsgym.com www.epicintervaltraining.com www.titleboxingclub.com www.tmbootcamp.com www.trufusion.com www.burnbootcamp.com www.findyourcapacity.com www.stretchlab.com www.coreprogression.com www.orangetheoryfitness.com www.kaiafit.com www.selfmadetrainingfacility.com www.thecamptc.com www.hardexerciseworks.com www.shred415.com www.enviefitness.com www.getinshapeforwomen.com www.4u-fitness.com www.tapoutfitness.com www.themaxfranchising.com www.impactstrong.com www.legendsboxing.com www.mayweather.fit www.justyoufitness.com www.retrofitness.com www.cyclebar.com www.therowhouse.comfranchise www.totalwomanspa.com www.ufcgym.com www.myhousefitness.com www.fitbodybootcamp.com www.charterfitness.com www.endurancehouse.com www.tigerrockmartialarts.com www.purephysique.com www.haptonline.com www.yogasix.com www.clubpilatesfranchise.com www.alkalignstudios.com www.9round.com www.fitwall.com www.sudorewellness.com www.hardcorefitnessbootcamp.com www.snapfitness.comus www.welcyon.com www.bodytherapeutix.com www.workoutanytime.com
DISCLAIMER: Our magazine is not an offer to sell a franchise, and is not directed to any reader to buy any franchises. The companies are not listed by rank. Our team carefully researched the listed information. The company information may chang; please make sure to check and contact the company directly.
SEP-OCT 2019 | FRANCHISE CONNECT 27
PHOTO BY PRESSFOTO
HOW TO MAINTAIN A GREAT BRAND IMAGE FOR YOUR BUSINESS A good reputation is such a fragile thing that it can be shattered by the tiniest of mistakes. However, there are many things in your control which can help you maintain a great reputation.
W
hen people find out that I’m a business start-up advisor with a specialty in franchises, the question I normally get is, “What is the hottest franchise out there?” My answer usually disappoints them: “It depends.” Everyone knows that this is a typical “lawyer answer,” because it can’t get you into trouble, and you aren’t committing to anything until the client pays your retainer (and maybe not even then). It is, however, the only right answer to that question, because the “hottest” franchise is really the BEST franchise for you, and what that is depends entirely on what you enjoy doing, what your budget is, what you are hoping to achieve with the business, and where you live.
28 FRANCHISE CONNECT | SEP-OCT 2019
An entrepreneur’s dream is to have a great brand image. However, that’s easier said than done. In fact, a good reputation is such a fragile thing that it can be shattered by the tiniest of mistakes — some of which may be beyond your control.
However, there are many things that you can control and which can help you maintain a good reputation. Lets’ take a look at them:
CREATE A BEST FIRST IMPRESSION Never underestimate the importance of first appearances. Remember that you will be judged on how you look and behave even before you open your mouth. So always make sure you are impeccably dressed, polite, and professional. This can be a huge opportunity to impress others just by your mere presence.
COMMUNICATE Always make sure to keep your customers in the loop with the latest updates. This can be done through emails, traditional mail, phone calls, texts, or social media. This ensures that
IMAGE BY MACROVECTOR
By Elizabeth Adams
the clients know you have their best interests at heart. Good communication is the key to a good reputation.
ASK FOR FEEDBACK Don’t be embarrassed to ask your customers about their opinions of your products and services. Encourage reviews and positive criticism. You can also send your customers a survey occasionally to check what they think. When you do this, your customers will know you value them. Also, make sure you implement the positive changes your customers request.
EXCEED EXPECTATIONS It just takes little things. For example, if you promise to follow up with your client in the next 24 hours, do it in 18. If you promise to get someone a reference, get them two or three. Always send personalized thank you notes to your customers. Little things like that can boost your brand image.
ACT WITH INTEGRITY In the business world, even a small act of greed, selfishness, or jealousy can have a serious negative impact on your franchise and show lack of integrity. If you think that you will not be able to achieve something in time, don’t do it. If your product does not deliver what it promises, do not try to sell it. Don’t cancel events or appointments at the last minute. If something interferes with it, find someone who can fill in for you or who can do the job just like you. You don’t want to be known as flaky and unreliable.
ADDRESS FAKE NEWS Professional jealousy is a real thing. If someone is spreading false rumors about your business, don’t just expect them to go away on their own. Actively work to make sure your clients know that the rumors are baseless. Address it in a positive way so that your customers don’t feel like you are just looking for petty revenge. As you grow your business, it is essential to keep monitoring your reputation. If you can’t do that yourself, hire someone else to do it for you. It will help you in the long run. w
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SEP-OCT 2019 | FRANCHISE CONNECT 29
Pitfalls of Commercial Leasing
THAT YOU NEED TO AVOID No entrepreneur or franchiser wants to get trapped in a commercial leasing agreement that cannot be terminated without significant penalties. Here are some of the pitfalls to avoid. By Sara Jensen
F
or any entrepreneur or franchiser, commercial leasing means major investments and should require in-depth research and experienced advice. Whether it is hidden costs or a hard-headed landlord, you don’t want to get trapped in a long-term commercial leasing agreement that cannot be terminated without high costs and penalties to you. Below, we offer some expert advice on some of the most common types of commercial mistakes that can throw you in a pit. DO NOT PROCRASTINATE
We have heard that the early bird gets the worm, but now it's time to put these words into practice. Don't hold off on searching for your commercial space until the last minute. Industry experts say that tenants should start looking for spaces less than 10,000 square 30 FRANCHISE CONNECT | SEP-OCT 2019
feet at least six to nine months ahead of time. That’s because it could take you that amount of time to search for a suitable property, perform due diligence, and then come to a lease agreement. In fact, if your space needs to be remodeled or renovated, you can move your timeline by as much as 12 months. The larger the business, the more complicated your leasing process will be, so big corporations and franchisees need to start even sooner This also goes for renewing your lease. If you put off approaching your landlord until two months before your agreement expires, you will hardly have any time to negotiate better terms as your landlord will know you don’t have time to find another place.
DO NOT HOLD OFF ON SEARCHING FOR YOUR COMMERCIAL SPACE UNTIL THE LAST MINUTE.
To make sure this doesn’t happen, tenants should look for plenty of other options, familiarize themselves with real estate trends, and start negotiation several months before they need the building. NOT PERFORMING DUE DILIGENCE
No matter how much you try to avoid it, you cannot have a successful commercial leasing agreement if you don't do your homework. Tenants who forego due diligence may later receive some nasty surprises. In some cases, they will find out that the building is inadequately wired, which could have been factored into the leasing deal if they had known about it beforehand. In other cases, the building’s infrastructure may be old or outdated, which could be inadequate for the business. One of the most important things to check is the HVAC system which should always be in good working order; otherwise, you will need
COMMERCIAL REAL ESTATE
to work the cost of it into your agreement. Also, ensure that the space is safe and meets the Americans with Disabilities Act guidelines. These things need to be addressed as part of the negotiations. Before signing the lease, work with your IT and architectural teams to ensure they have a tenant improvement budget that will work out for the space you want to create. NOT CLARIFYING LEASE OBJECTIVES
One of the worst things you can do is to run out looking for an office space without first consulting with other company executives on the business’ objectives. Some questions that should be asked beforehand should concern what type of brand image they want the space to portray. The layout of the building should also be taken into account, and the executives should decide the breakdown for private and collaborative office space. Businesses should also consider how much space they need. This is a good time to hire the services of an architect and develop a blueprint that will consider the layout, floor load capacity, and company growth forecast. A lot of businesses start searching for office spaces without considering these factors and end up either with a very costly hardly filled space or a cramped and dark office that can contribute to low employee morale.
LEVERAGE EXPERIENCE
When negotiating the lease, it is a common mistake to assume you will get the best out of the deal. However, your landlord will endeavor to make sure the terms of the lease are in their best interest. In this case, an inexperienced tenant is often at a disadvantage. To balance it out, tenants should hire the experience and expertise of a qualified lawyer, accountant, or real estate broker.
GETTING LOCKED IN A LONGTERM DEAL
NOT CONSIDERING BUILD-OUT COSTS
Approach long-term commercial leasing deals very cautiously. If you are a business owner, you may think you need a space for several years. But what happens when your business grows or if you want to relocate to another more high-traffic location. You may also decide to downsize or move to a smaller building. If you don’t take these things into account, you may be locked into a long-term deal and will have no way out except for heavy penalties, which can easily cost as much as the cost of your entire term.
When you are vacating a space, you will likely strip it down to blank walls and floors. Foreseeing this, many landlords often push to have new tenants absorb some of the build-out costs. Even though these costs vary by space to space, the average cost of a progressive space can cost $152.23 per square foot while traditional space can cost $177.06 per square foot. These include standard paint finishes, carpeting, and the lighting for the space. All of these expenses can build up.
SIGNING THE DEMOLITION CLAUSE
If you have rented a building that has the potential to be demolished and rebuilt, your landlord may be tempted to sell it to a developer if a good enough opportunity comes to them. If this happens, and you have negotiated terms for a long-term deal, signing the demolition clause may be the worst thing you can do. A demolition clause states that if the building is being resold, the landlord has the right to ask their tenants to vacate the space within a specific period of time. If you unknowingly sign this clause and your landlord has been lured by the smell of money, you can say goodbye to your five-year renewable lease — and the workspace for hundreds of your employees. Business owners will not get what they need if they don't do their homework. Now is the time to assiduously plan ahead, clarify your goals, go over the fine print of your leasing contract, and don't forget to get a team of experts on your side. Once that’s done, you can relax in your great new office space. w SEP-OCT 2019 | FRANCHISE CONNECT 31
A Strong Bottom Line BY KEEPING YOUR CUSTOMERS IN GOOD SHAPE By Christopher Conner
I
PHOTO BY YOGENDRA SINGH FROM PEXELS
FITNESS 32 FRANCHISE CONNECT | SEP-OCT 2019
love the fitness market. It’s one of the businesses that you can truly have it all. You are in the business of helping people look, feel, and be the best versions of themselves. If you have caught the fitness bug personally, you probably can’t imagine a way to make a living that would be more fun and would be easier to have passion doing every day. Fitness has become a big business globally, generating almost $30 billion annually in the US alone. A consumer can see it in the franchise industry with an explosion of new brands, market segments, and categories within the fitness market. One of the current trends in franchising is the transition to customized, more personal interaction between the brand and the consumer and between the consumer members of each facility. It is a huge transition from the days of fitness in years past, where the building was large, obnoxious, full of members who worked out one time every three months, and there was very little interaction with the member outside of a monthly membership charge on their account. Today, people want results. Consumers want to accomplish their fitness goals, and they are willing to spend to get there. This includes weight loss, adding muscle, better health, nutrition, and a variety of other health
EXPERT ADVICE
"FITNESS HAS BECOME A BIG BUSINESS GLOBALLY, GENERATING ALMOST $30 BILLION ANNUALLY IN THE U.S. ALONE. "
The education and children's services market has quickly become a massive market segment in small business globally creating opportunities in virtually every market around the world. PHOTOGRAPH COURTESY VICTOR FREITAS
and wellness accomplishments. Customers pay much higher membership fees to get customized, focused attention from the service provider. Franchises such as RockBox Fitness, which has sold more than 50 franchises since 2018, has monthly membership fees in excess of $159 and has had enormous success across the US. Other brands such as Crew Fitness, a rowing franchise system out of Alabama along with Level Red Boxing, based in Erie, Pennsylvania, all offer member-focused group training programs. Burnrate Fitness out of Burlington, North Carolina, brings the model to an entirely new level with nutrition counseling along with endurance, flexibility, and strength training all under one roof. Today’s customers want specific, tailored services that fit their interests and personality and are willing to pay for boutique fitness programs over big-box retail programs. This transition to customer-centric fitness has done a variety of things to the fitness franchise market; most notably, it has improved unit level economics with a shorter ROI and lower overall investment range. Brands such as Title Boxing, which has opened more than 160 franchises in seven years, can be opened with an investment range as low as $162K, which opens the market to a wide range of new fitness franchise investors and makes for a strong ROI potential with a lower investment. Customers expect attention, but they don’t want one-on-one necessarily. The classroom fitness model allows for personal trainer-type pricing ranges with only one trainer leading the room. This dynamic makes the profit margin stronger with a nominal cost of labor and a classroom full of high monthly fee paying members. Customers appreciate the attention and the comradery that comes with the model. CrossFit and Orange Theory are
two models where you can find members who interact with one another like they are family and create bonds with one another that are fun, personal, and help hold everyone accountable to a good workout. What seems to be the key to a strong fitness franchise brand in today’s market? Personalized attention and customer-centric focus is a big deal; people expect this in a gym today, but they are not as sensitive when it comes to what they are doing during their workout. Rowing, boxing, cycling, and weight training have all been well received in a variety of fitness franchise brands. Have a strong, simple, and sexy brand. The successful fitness franchises all have one thing in common, their brand is exciting, easy to remember, and creates a following quickly with bold coloring, great digital presence, and a very cool look and feel. All of these fitness success stories definitely “get” marketing. They know
how to drive traffic into the locations, create awareness, and convert interest into paying members. Fitness is a big market segment right now and only getting bigger. If you have passion for the space, I’d advise a deeper look into some of the amazing fitness brands available today in franchising. w For more information on fitness franchises, contact Chris Conner with Franchise Marketing Systems: Chris.Conner@FMSFranchise.com Christopher Conner started his career in franchising in 2002 working for a franchise consulting firm in Chicago. He founded Franchise Marketing Systems in 2009 after seeing a need for full service franchise development services for new and start-up brands. Today, Conner's team has expanded to 27 consultants between the US and Canada and has worked with over 200 brands to support successful franchise development strategies. For more information on Chris Conner or Franchise Marketing Systems, visit www.FMSFranchise.com
SEP-OCT 2019 | FRANCHISE CONNECT 33
THE POWER OF
Personalized marketing is one of the most crucial tactics that can result in increased brand loyalty and a great reputation.
Personalized Marketing By Melissa Kazanci
P
ersonalized marketing is one of the most crucial tactics that can result in increased brand loyalty and a great reputation. When we talk about the personal touch, we don’t just mean calling customers by their name. These days people want to do businesses only with brands that: • Can immediately identify them based on their buying preferences. • Have instant access to information about every interaction on every buying channel • Understand their customers’ issues and know how to solve them.
Better Customer Experience
A Salesforce report shows that the bombardment of advertisements does not work well on customers these days. Instead, 58% of customers say that personalization is an important factor in deciding whether to buy from a company and determining a company’s reputation. Customers are now willing to share 34 FRANCHISE CONNECT | SEP-OCT 2019
their personal data so that businesses can understand what they truly want. This oneon-one interaction between a client and the business can help them reconnect and will create a better experience for the customer as well as respect for the business.
that taps into their emotions, brings them nostalgia, or is about a cause they care about. This can spark positive memories or a sense of purpose in customers that can guide their buying behavior.
Boost in Revenue
A custom-tailored newsletter with personalized recommendations can help you retain customers by reengaging them to your brand and showing them the business has a lot to offer them. You should also reward your frequent customers by offering them free deliveries, sending them a giveaway, or giving them coupon codes related to products that interest them. Personalized marketing can improve customer retention by 5%, which can boost revenue by 95%. Businesses need to see things from their customers’ perspectives to increase brand loyalty. Personalization can help your customers discover things they were unaware of and lead to unplanned buying decisions. When implemented correctly, personalized marketing can have a wonderful effect on your company’s sales. w
A survey conducted by Accenture shows that at least 50% of customers will shop at a store if the staff knows them by their name, and two-thirds will do so if the retailer knows their purchase history. Businesses can create a hyper-personalized experience for their customers by segmenting them according to age, location, gender, revenue, etc., and offering them loyalty programs, sales promotions, and discounted deals based on the gathered data.
Increased Emotional Buying
When you have customers’ data, it becomes easy for businesses to know what touches their hearts. Customers buy items like clothing, shampoos, and even water bottles if they see an advertising campaign
Improved Customer Retention
DIAMOND IN THE ROUGH
Why Invest in an Unprofitable Business? "Do not be fooled by its commonplace appearance. Like so many things, it is not what is outside, but what is inside that counts. This is no ordinary lamp. It once changed the course of a young man's life; a young man who, like this lamp, was more than what he seemed: a diamond in the rough. Perhaps you would like to hear the tale?" — Aladdin By Holly A Ford
A
new franchise owner approached me one deep dark hallowed night. Ok well maybe it was actually by phone on a weekday afternoon. Whatever… Anyway, this owner, who will be representative of dozens of owners I have worked with in this area, had opened his new franchise less than two years prior. He was in an agitated state. He had invested in a reputable franchise, beautiful buildout, and massive initial marketing. He hired and trained 12 employees and began operations. Unfortunately, he bled his working capital in less than 4 months, and break-even was not projected until 12 months. This owner borrowed what he could, cut out marketing, and tried to stay on top. Rather than be terminated, he came to me to find a buyer. The phrase "diamond in the rough" pertains to a person or an item that has potential, and to the untrained eye, is overlooked or missed 36 FRANCHISE CONNECT | SEP-OCT 2019
the business to the franchisor, an owner can often come out with their shirt on by selling to a buyer with a higher risk tolerance.
ADVANTAGE TO THE SELLER? They get out with more than they would by relinquishing the business.
ADVANTAGE TO THE BUYER? They have a much lower investment with a higher return for the risk they are willing to take.
Franchise owners whose businesses are struggling have options. Taking a long hard look at the business with a detailed analysis will illuminate the truths of the enterprise. Only then can the business be optimized. The owner should begin with a current, consercompletely. The Japanese have a saying that vative valuation and then review and anais not dissimilar to the phrase diamond in lyze each factor of distinction to develop a the rough: "A jewel, unless polished, will not projected value based on several forecasted sparkle." This business fell squarely in the scenarios. This can be very empowering for category of a diamond in the rough. owners, who can now have the option to I have clients who sign buyside agreecontinue the business or sell, rather than ments with my firm for the sole purpose terminate. of acquiring one or more diamond in the For owners who are out of time, developing rough businesses. These often cash buyers a projected forecast can assist in engaging seek to gamble on buying a failing business, buyers that are intrigued with this diamond use their skills to turn it around, and then in the rough and have the means and knowlultimately sell it for a very high return on edge to cut and polish the business into proftheir investments. itability. w Think about this mindset for a minute. A franchise owner invested upwards of a half Holly A Ford is the founder and CEO of million dollars in the buildout, hired and international business brokerage Zarian Firm and author of best-selling book trained all the employees, invested in marCreate Your Own Wealth - A Collection keting and growth, only to find that in the of 2-Minute Topics on Franchising. Ford first few years, for one reason or another, they is a member of the Forbes Communication Council, contributor to 12 publications, couldn't sustain the business into profitabil ity. Now they want to get out fast. So, what's and co-host of blog talk radio show, Pillars of Franchising. Ford's mission to "Empower Humanity with Creative Force" the answer? has ignited an initiative to leverage franchising world wide Well rather than terminate or relinquish as a social entrepreneurial catalyst for global change.
Your franchise and business opportunity resource! Are you considering owning your own business or franchise and not sure where to start? Franchise Search Partners, LLC provides franchise consulting services to assist you in making the best decision in buying a franchise or business opportunity. Our services are free to our clients, as they are paid by the franchises we represent. We represent over 500 of today's leading franchise opportunities and are well known in the industry for our professional approach by our franchise partners. With so many franchise opportunities available today it is much easier to choose the wrong franchise than the right one. Our primary goal is to help you navigate through the entire process and build a business for you and your family’s future.
Jason Blough, CFC | Managing Partner (240) 446-6413 Call/Text www.FranchiseSearchPartners.com jason@franchisesp.com SCHEDULE A CALL WITH ME:
jasonb.youcanbook.me
PHOTOGRAPH COURTESY BRUCE MARS
WHERE TO BEGIN IN
Exploring Your Options in FITNESS FRANCHISING By Marilyn R Imparato
Y
PHOTOGRAPH COURTESY LI SUN
ou have made the decision to embark upon exploring franchise options and want to see what is out there in fitness franchising. It can be a daunting process with all the
brands, concepts and variety to choose from. So where should you begin?! I believe you have the choice of two routes to go. You can either trudge through the myriad options alone or you can partner with a consultant with expertise in franchising to help you navigate
38 FRANCHISE CONNECT | SEP-OCT 2019
the process. I will touch on the plusses and deltas of both routes to give you fodder to choose which route is best for you. If you decide to explore on your own, you are going to be in control of your time and the amount of time you will invest in your exploration process. This is also a delta. Since this is not your area of expertise, this will unfortunately elongate your learning curve and will not help protect you from what you do not know in the franchising industry. Can you come up to speed on all the nuances in the franchising industry? Yes. Will it take a lot of time to do so? Yes. If you do choose to go it alone, you will need to carve out considerable time for research on each and every one of the opportunities you choose, what your role is, what is required of you, what the competitive landscape is, and many other aspects in operations, technology, finance, and human resources, just to name a few.
TAKEAWAYS
NO MATTER HOW THOROUGH YOU BELIEVE YOU CAN BE IN FINDING A FRANCHISE, SEEKING WISE COUNSEL IS VITAL TO YOUR FUTURE SUCCESS!
PHOTOGRAPH COURTESY PIXABAY
If you are up for this challenge, then this route may be the best course for you! Unfortunately for me back in 2002, I decided to do just this route while I was still a C-level executive and simultaneously completing my MBA. Had I opted to work with a consultant at that time in my life, I can honestly say that I would not have chosen that fitness concept and may have not even chosen fitness at all. It is precisely why I help match people with the optimum opportunity for them today, to pay it forward and help them not make the same mistakes I did with my first franchise, which just so happened to be in fitness. My take away is this: No matter how thorough you believe you can be in finding a franchise, seeking wise counsel is vital to your future success! Should you decide to work with someone in the Industry that has years of expertise with franchising and fitness franchises in particular, I would obviously recommend this route, since there are no fees to you to obtain this expertise and coaching. So how do you know which consultant you should work with? My advice is to ask questions about their background and expertise, and Whatever direction you choose, make sure that you are thorough go with your gut! You need someone in this process to avoid making the wrong choice. who you feel will be looking out for your of the way in the franchise exploration into franchise ownership.“ In conclusion, whatever direction you best interests and and due diligence process, the funding has the expertise, so make sure they meet process, and the legal processes. choose, make sure that you are thorough To quote one of my candidates, Brian in this process to avoid making the wrong your specific requirements. There are a lot of consultants out there just like there are Uretzky, “Having an advisor to help navi- choice. w many realtors out there, so be sure it is gate through the process was crucial for someone that can provide the expertise me to make sure to cover all the bases Marilyn R Imparato Senior Consultant with The Franchise Consulting and value to you and your process! Be in the decision-making process. In terms Company. Marilyn is a former C-Level careful not to work with a consultant that of working directly with Marilyn, I feel Executive in the Technology Industry Marilyn connects with me on a personal tries to push you in a direction that is not and MBA Graduate that has been in the Franchising Industry for over 15 years. the direction you want to go or does not level to help meet my needs in franchisMarilyn is passionate and dedicated to listen to your needs and wants. Make sure ing. For me it was crucial to surround assisting potential Franchise Owners they have the knowledge and resources myself with people I can trust because navigate through the entire process from beginning to completion. to help navigate you through every step I was seguing out of corporate America SEP-OCT 2019 | FRANCHISE CONNECT 39
PHOTOGRAPHS COURTESY RICCARDO BRESCIANI
THE FUTURE OF WORK:
How Office Design is Changing By Sara Jensen
I
f you were living in the 1980s, you would be expected to work in cubicles. However, today’s workplace is no longer your dad’s office. Workplace designs are rapidly changing and for the better. Now that 2019 is more than half gone, this is the perfect time to contemplate the future of the workplace. As millennials and Generation Z enter the workforce from college, more and more employees are demanding a fresher, more innovative, and more imaginative work environment that promotes flexibility, creativity, productivity, and well-being.
That means we may be seeing the last of cramped cubicles and grey windowless walls or experiencing sitting at a desk staring mutely at the screen for eight hours.
40 FRANCHISE CONNECT | SEP-OCT 2019
Here are some aspects that define the future of the workplace:
FLEXIBLE UNIVERSITY-STYLE SPACE Research suggests that about 82% of fresh-out-of-college workers do not feel comfortable or happy with the traditional office design. At universities, students were allowed to work in libraries, cafes, classrooms, dorms, the garden, and anywhere they wanted. This is why new workers often get lost when they move from their flexible university environment into tightly structured corporate spaces. This results in new recruits
"WORKPLACE DESIGNS ARE RAPIDLY CHANGING AND FOR THE BETTER. "
taking longer to understand the company’s objective and also an increased risk of them leaving the company after a short time. Although two jobs in a year may be acceptable to young workers, it can be a death knell for a new company struggling with high turnover. An engaging workplace experience can be the secret to retaining employees. New workplaces are coming equipped with private places for collaboration, which can offer plenty of opportunities for new hires to work in groups. Modern offices are also offering opportunities to relax and to focus on work and an open plan area for daily work and meal times.
ACTIVE WORKPLACE DESIGN One of the key values that are highlighted in modern workplaces is activity and wellbeing. Health and wellness are a priority for
DESIGN
A smart office cannot connect just employees. It can connect all the things in an office building. millennials and younger workers, and offices are now starting to incorporate flexible furniture and wellness programs. Offices are a breeding ground for sedentary behavior, and a couple of hours of exercise after work just don’t cut it if you want optimum health. Keeping these in mind, modern offices are implementing a few distinct strategies: • Something as simple as making stairs more attractive can work wonders. Most stairs consist of grey chunks of cement and white walls. They can be improved by adding a splash of color, allowing in more light, and making the stairs a more obvious choice. Some companies even host inter-departmental challenges to take stairs. • You can also put key company hotspots in locations separate from each other. For example, you can place the photocopier or printer across the office from the coffee spot. This will promote more walking from one spot to another and can also encourage socializing. • Several studies suggest that natural lighting translates to more alert and focused workers and can create a better indoor experience. Adding larger windows, skylights, or outdoor activity areas can unlock significant health and wellness benefits for your employees. • A corporate gym is a very attractive perk for employees and can help release mood-elevating endorphins. This can help workers get rid of stress that is a natural part of corporate work and improve their productivity.
BIOPHILIC DESIGN “Going green” has become a buzzword for offices. Natural elements have shown to increase employee health by 13% and efficiency by 8%, so it seems the buzzword is here to stay. Unlike older offices, which would make do with a few odd potted plants in a halfhearted attempt to bring some color into
A Microsoft office the office, your entire office can be inspired by nature. Modern offices are now building bamboo walls that are wood but do not promote deforestation. The curves and lines of the office itself can mimic the swooshes of nature, and today’s offices are all about sustainability, using renewable resources, reducing carbon footprints, recycling, conserving water, and eating locally sourced organic food. Keeping all of these things in mind, many companies are also factoring outdoor space into their workers’ functioning. If getting some fresh air can improve your attentiveness like magic, why not host a corporate brain-storming conference out on the lawn?
EMBRACING TECHNOLOGY A smart office cannot connect just employees, it can connect all the things in an office building. Wireless technology gives us freedom to move about and creates more dynamic ways of working. It means your business is on its way to becoming more agile, collaborative, and intelligent. Today’s offices are also welcoming virtual reality and augmented reality into their culture, and many have been known to boost competitiveness by hosting training sessions via in-filed scenarios. The futuristic technology can revolutionize how we work, collaborate, and create. Another aspect of the modern workplace
is the BYOD — bring your own device. This allows workers to use their own laptops, smartphones, tablets, and virtual assistants so that they can have more comfort and freedom when doing their job. Moreover, it has been seen that employees work quicker when they use devices they are more familiar with. That means your smartphone and wearable gadgets are more than your playthings for home — they are becoming increasingly integrated into the office and can help you in presenting, making schedules, tracking your progress, responding to messages, and helping out with conferences. With more downtime translating to more creativity to productivity, workplaces are going above and beyond to offer employees the kind of comfort they get at home to wind down. This means adding TVs, cushy sofas, saunas, and community spaces, right at the office. Think Google. The tech giant may have gotten there first, but there are many other companies that are following the same trend. With the work and life divide becoming increasingly blurred, these break-out spaces will become extremely vital for your employees’ positive mental health. The perfect workplace will be full of unique gestures and idiosyncrasies that will make the workforce feel valued and cared for. And that’s exactly how it should be. w SEP-OCT 2019 | FRANCHISE CONNECT 41
COMPANY PROFILE
Incredible Educational Franchise Opportunity
A
Making Science & Engineering Fun for Students
fter-school programs are one of the fastestgrowing industries in the nation. According to Marketresearch.com, over the five years to 2018, the number of students participating in after-school activities has risen due to increased demand and over the five years to 2023, industry revenue is anticipated to continue growing. Furthermore, according to data from the Afterschool Alliance regarding parents who have a child in an after school program: • 77% agree that afterschool programs help children gain teamwork, leadership, and critical thinking skills • 88% agree that afterschool programs help develop children’s social skills Stemtree franchise presents a K-12 educational business opportunity to be a part of this growing multi-billion dollar after-school industry. Stemtree’s focus on science, technology, and engineering aligns with today’s nationwide emphasis on STEM: Science, Technology, Engineering, and Mathematics. In comparison to other STEM centers, our K-12 Stemtree education goes deeper and broader. Stemtree’s unique education model offers each child a self-paced, customized program which allows them to become confident and capable in a less intimidating, yet fun environment. Our highly structured curriculum not only incorporates STEM activities/experiments but also teaches the principles of science and engineering behind these activities. We are currently the ONLY franchise that offers a complete curriculum for each of the following workouts: • Science by grade level and high school Biology, Chemistry, and Physics • Coding • Robotics • Electricity & Electronics
®
Stemtree’s unique concept and perspective on the marketplace has prepared us to expand our franchise at a rapid pace. Our business model is structured to support the industry influx, allowing for new Stemtree franchisees to start generating quicker returns. The Stemtree support system is consistent throughout the lifetime of our partnership, and we assist you in every step of the way. If you have a passion for helping others and improving lives, then owning a Stemtree franchise would be one of the most rewarding franchises available. Stemtree franchise system offers you an opportunity: • To Inspire Children • Access our specialized Turnkey Curriculum • 365 Potential Revenue: In-center & out-center enrollment plans throughout the year • Training and Support • Highly Structured Curriculum • Unique Education Model
STEMTREE FRANCHISING, LLC 220 Maple Ave, West Vienna, VA 22180
42 FRANCHISE CONNECT | SEP-OCT 2019
+1 (877) 200-STEM (7836) franchise@stemtree.com www.stemtree.com
COMPANY PROFILE
E
Very Niche
This specialized home-based franchise gives homeowners peace of mind very day, all across the USA, mega developments, residential homes, commercial towers, and custom-built mansions are built. At some point or another, after the sheet rock has gone up and the walls have been painted, there will be hundreds of situations where the walls will need to be re-opened. It could be a small upgrade to a sink or light fixture or a large-scale remodel, or maybe an unfortunate situation, like a water or gas leak. In all of these cases, knowing what’s behind the walls can be the difference between a simple, inexpensive fix or a costly mess. That’s where Jobsite Image comes in. An innovative service, Jobsite Image documents and photographs what’s behind the walls of customer’s homes and catalogs the images with a unique system that includes a web-based page and login for each client. Every pipe, electrical wire, AC duct and MEP element can be accessed with one click of a button. Customers love the service because it gives them peace of mind and can save money and headaches down the road. For investors, Jobsite Image is an easyto-run, home-based business with low startup costs and very little overhead or competition. The company’s streamlined processes and extensive support and training lets franchisees hit the ground running with an in-demand service in a matter of weeks.
JOBSITE IMAGE 3oo Carnegie Center Suite 150 Princeton, NJ 08540
877.MY.JOBSITE info@jobsiteimage.com www.jobsiteimage.com
SEP-OCT 2019 | FRANCHISE CONNECT 43
COMPANY PROFILE
Where fitness meets fun!
Our mission is to inspire fun and promote fitness to kids and families through yoga and much, much more.
I
n 2012, Zooga Yoga® opened as the only yoga studio in the Los Angeles area dedicated to babies, kids, teens, expecting moms, parents and families. And now, Zooga Yoga is the only premiere kids franchise available in the United States! Zooga has a playful and unique approach to yoga. Zooga couples traditional yoga poses and elements with fun themes that include animal poses, challenging and partner poses, games and props to create a specialized brand of ‘YogaPlay®’. This approach is designed to foster confidence, creativity and imagination while keeping true to the goal of whole mind and body health that is inherent in the practice of yoga. Zooga Studios are bright, fun and creative, dedicated to introducing kids and families to a one-of-a-kind, branded yoga experience called Zooga Yoga. The pressures of today’s fast-paced, social media, digital bombardment, stress filled world, create particularly difficult challenges for children. Zooga Yoga combines the most current mind and body wellness techniques with traditional yoga poses, dance, props, original kids music, and laugh-out-loud games to create interactive animal adventures that are nothing short of the future of fitness of kids. Zooga classes are developed to create not only a deeper sense of strength and focus for kids of all ages, but also to encourage bonding and togetherness for mommies, daddies and their little ones. Guided by yoga principles and designed for maximum entertainment, Zooga is good fun for kids and parents. Zooga’s locations feature green building techniques, including recyclable materials, acoustic ceiling tiles, floating bamboo floors, energy efficient LED lighting and low VOC paint. Zooga offers a variety of classes for all ages including: Zooga not only offers our signature Kids Yoga classes, we offer Kids Dance, Kids Music, Parent and Me fitness classes,
Messy Arts, Soccer, Kickin’ Ninjas, Baby Sign, Teen, Adult and Pre-Post Natal classes. If that’s not enough to keep you coming back for more, we offer specialized parenting workshops, babysitting drop off nights, studio and home privates, kids teacher trainings and school and camp programs too. Plus, you can plan your next celebration with us! We provide unique, one-of-a-kind birthday parties, baby showers and group privates– at the studio and at your home or location of your choice. In addition to classes available for all ages, Zooga also offers a kids yoga retail component, including many Zooga branded products only available from Zooga. Yoga mats, yoga cards, cd’s, dvd’s, books, apparel, tote bags, eyes pillows and water bottles are just some of the items available. Zooga’s caring, experienced teachers guide children and parents through a transformational, educational yoga experience. We are passionate about teaching kids of all ages to experience the healthy benefits of yoga and physical activity in a non-competitive, stress-free environment. Yoga is an ancient practice that can help modern kids achieve calm and balanced minds, while they build strong and flexible bodies. Our mission is to inspire fun and promote fitness to kids and families through yoga and much, much more. Zooga is a multifaceted mind-body fitness studio catering primarily to children ages 0 to 18. Created and perfected at our flagship location in Culver City, California, our approach is completely unique! “Our Om is your home”. Learn to roar like a lion, float like a butterfly, and swim like a dolphin. It’s a jungle out there, so bring your animal instinct and sense of yogaplay®.
Franchises now available for purchase.
email franchise@zoogayoga.com for more information.
ZOOGA YOGA | CULVER CITY 11054 Washington Blvd. Culver City, CA 90232
44 FRANCHISE CONNECT | SEP-OCT 2019
(310) 839.6642 info@zoogayoga.com www.zoogayoga.com/culvercity
COMPANY PROFILE
T
Total Row Fitness Join the Rowing Revolution!
otal Row is a rowing centric group boutique fitness studio. Headquartered in Atlanta, Georgia husband and wife owners, Elliott and Lauren Smith, built Total Row on 3 founding principles: (1) Provide a scalable workout that someone of any age or ability can enjoy, (2) Broaden the target market of those looking to join group fitness classes, and (3) Give back to their local community. There is a reason rowing is making waves in the fitness industry! “We had worked out for years before, and most places are really intimidating unless you fit a very specific demographic. We decided to change this and created Total Row. By putting rowing front and center, we took advantage of the exercise’s total body, low-impact motion that almost anyone can do. Our studio is warm and welcoming, and it is a nice reprise from the celebrity instructors and head-banging music,” said Elliott. Because Total Row classes always have rowers
as the central cardio component, classes are total body, low-impact, and calorie-torchers (participants can burn up to 900 calories per class)! With the addition of suspension bands, kettle bells, slam balls, yoga, and more, each class is unique and fun! Classes are scalable to any age or ability, and we have members that range from Olympic gold medalists to grandparents! The Total Row Franchise is committed to supporting the communities that help it thrive. Each year, the company donates to 10 different charities through its “Give Me 10 Big Ones” program. Total Row franchises are unique, scalable, flexible and are built to thrive in both small and large markets. If you have a passion for helping people live better, healthier lives, we want you on our Crew! Total Row Studios have a low fixed cost structure, which opens the reality of owning an exciting, impactful business to a wide range of investment levels!
TOTAL ROW FITNESS
3655 Roswell Road Suite 204 Atlanta, Ga 30342
(404) 247-9328 studio@totalrowfitness.com www.totalrowfitness.com
SEP-OCT 2019 | FRANCHISE CONNECT 45
COMPANY PROFILE
Verity Commercial – Your Trusted Advisors Transforming your commercial real estate needs into a strategic advantage WHAT WE DO
Verity Commercial is a commercial real estate advisory and investment company located in Reston, VA. We bring extensive experience in brokerage, project management, and investment services. Verity was founded on the simple premise that we want to change the way people think and act about real estate. Verity enables business owners and executives to transform real estate from a necessary business expense into a strategic business advantage. Brokerage / Advisory Traditionally commercial real estate is viewed as a transaction that is either a necessary expense to be minimized, or as a direct investment on the part of an individual or a group. Verity works with businesses to transform their space needs into a strategic advantage that positively impacts their bottom line. Project Management We work on some of the most technically challenging projects in the Washington, DC metro area. Our core industries include data center, life science, healthcare, office, and manufacturing. Verity works as an integrated extension of our client’s team by defining, controlling, and managing all aspects of design and construction while keeping the ownership fully informed of project status in terms of scope, budget, and schedule. Our holistic approach integrates real estate, finance, and business strategy into the design and construction process, thereby aligning objectives and simplifying complexity. Investment Our constant comprehensive surveillance of the commercial real estate market and our long-standing relationships
with key players allow us to uncover promising properties ahead of the competition. We leverage our day-to-day service business to identify off market assets with limited competition to create opportunities for our investors.
SERVICES
Our services enable clients to transform real estate from an expense to be minimized into a strategic advantage, ready to make a meaningful impact on their overall business performance. • Tenant/Buyer Representation • Landlord/Owner Representation • Investment and Advisory • Acquisition and Development • Project Management • Construction/Development • Fee Development Verity was recognized by Inc. 5000 two years in a row as one of the Fastest Growing Companies in America and received the Virginia’s Fantastic 50 Award as one of the 50 Fastest Growing Companies in Virginia.
VERITY COMMERCIAL, LLC 1821 Michael Faraday Drive Suite 208 Reston, VA 20190
46 FRANCHISE CONNECT | SEP-OCT 2019
(703) 435-4007 info@veritycommercial.com www.veritycommercial.com
COMPANY PROFILE
ITEK Construction & Consulting
I
Full-Service Construction
TEK Construction is a full service construction company, located in Herndon Virginia. Established in 1994 with a clear strategy of continuing growth, as a general contractor, ITEK Construction, Inc. has built a solid reputation of stability and exceptional client services. Our quality and satisfactory services are the reason why a large percentage of our business is with repeat clients who place their trust in us. We are committed to providing the necessary resources to complete the project on time and within budget despite the many challenges that are encountered. We manage all aspects of the commercial construction process. Our talented and loyal staff is the core of our success. Our team has broad skills and experience in construction estimating, management, and project development. ITEK believes that every client should enjoy a finished project with their expectations surpassed. The owners are integrated in the construction process. We continue to be recognized for our top-notch construction workmanship, superior commercial construction services to our clients, highest level of safety standards and contributions to our community. ITEK has been exceeding the established goals in almost every instance. Pursuing satisfaction of our clients in the construction industry, we tackle each challenge with safe, reliable and innovative solutions.
We believe that the highest quality work and customer satisfaction result from adherence to these values. SKILLS & KNOWLEDGE We approach every project with one goal in mind; to exceed client’s expectations. We are able to achieve this goal because we hire the finest talent, manage every detail, imagine the unknown and articulate it for others, translate the new ideas into concrete forms and set one of the highest quality standards in the commercial construction industry. APPROACH Organizations demand fast and efficient projects that do not interrupt their business operations. At ITEK, project success is determined early on, sometimes even before actual work begins. We continually seek alternatives that will reduce the cost and duration of each project, while maintaining clean, safe and unobtrusive construction sites. We seek to understand the foundations of our clients’ criteria for decision making.
CORE VALUES We believe that fostering relationships, constant pursuit of excellence, community responsibility and ethical behavior yield the highest quality of work. Project success is determined by understanding our clients needs, business objectives, and even their competitive markets, in order to accurately define their real project needs and constraints.
ITEK CONSTRUCTION INC. 627 Carlisle Drive Herndon, VA 20170
(703) 261-6663 oyazgan@itekconstruction.com www.itekconstruction.com
SEP-OCT 2019 | FRANCHISE CONNECT 47
COMPANY PROFILE
Own Your Own Explosive Health and Medical Support Business Opportunities like this don’t come around very often but when they do, those who recognize the trend and act quickly are the ones who reap the benefits for a lifetime.
T
his is the first time ever in the trillion-dollar health and wellness industry that a revolutionary franchise like this has ever been offered. We have collaborated with the best minds in the world of franchising and combined it with the lucrative and in-demand health and wellness services industry to form a dynamic franchise opportunity so powerful you’ll be wondering why no one has done this before. Combining recent technological advances, with ideal market conditions make the timing ideal for this winning franchise opportunity. The public is finding it increasingly difficult to get quality health care at an affordable price. Medical professionals are struggling like never before to make ends meet. The RX2Live franchise provides an exciting solution to these growing problems so everyone wins. Our proprietary programs are helping doctors double and even triple the net income of their practices without increasing the size of their staff, adding new patients and with little or no upfront investment.
Our franchisees provide services in three vertical markets that are in huge demand today: 1. MEDICAL SUPPORT SERVICES
Behavioral Health Screenings RX2Live has an innovative tool that allows doctors to easily and effectively conduct mental health screenings right from their office. A true turnkey system that is automated, customized and provides critical information about a patient’s overall health.
DNA Testing Our premier service that reveals a person’s genetic makeup which allows health care professionals to accurately prescribe a program for diet, exercise and nutritional supplementation. We call it our Customized Roadmap to Wellness.
48 FRANCHISE CONNECT | SEP-OCT 2019
COMPANY PROFILE
Nutritional Supplements Analyzing DNA test results allow doctors to design a supplement program to optimize the health of the patient. RX2Live stores and automatically ships product to the patient monthly while the health care professional collects a residual on all orders. Weight Loss System The most effective, safe, rapid, natural weight loss system ever developed. Gets the weight off and keeps it off. Chronic Care Management (CCM) Using our system and proprietary software, doctors receive cash reimbursement from Medicare of up to $20 per patient every month. This is done with no upfront investment and once patients are enrolled, doctors can start billing immediately for a service we provide. Thermal Imaging Allows health care professionals to quickly and easily offer affordable Thermal Imaging Services right from their own office. Using a special camera, patients can be scanned quickly and painlessly by a trained assistant to determine potential problem areas. The scan graphically illustrates potential problem areas in the body. This is an immediate revenue source for health professionals.
2. SENIOR WELLNESS
With an increasing population of baby boomer retirees, Senior Wellness programs are already in big demand and will continue to grow in the coming years. The RX2Live Senior Wellness program allows
health care providers to follow a comprehensive support system designed to improve attitudes, live longer, happier, and healthier lives. We promote an enhanced quality of life for seniors by improving cardiovascular function, strength, flexibility, balance, endurance, intellectual stimulation, diet, and education programs. Patients are simply referred to RX2Live and we take care of the rest.
3. WORKPLACE WELLNESS
This is one of the fastest growing and most popular segments in healthcare services today. A comprehensive analysis of 42 published studies of worksite health programs showed that companies including ‘self-insured employers’ that implemented an effective wellness program realized significant cost reductions and financial gains.
The RX2Live franchise offers an outstanding return on investment for the franchisee and
fills a critical need in the marketplace. You are in the right place at the right time to
position yourself in a unique franchise that
is poised for explosive growth.
Judy Cole (757) 323-3798 jcole@rx2live.com http://virginiadc.rx2live.com SEP-OCT 2019 | FRANCHISE CONNECT 49
BY THE NUMBERS
4%
THE HEALTH AND FITNESS INDUSTRY HAS A GLOBAL REVENUE OF
$87.2 BILLION WITH 201,000 CLUBS AND 174 MILLION MEMBERS
OF ALL SMALL BUSINESSES IN THE USA ARE FRANCHISES
AMERICANS SPEND
$33 PER MONTH
97%
ON GYM MEMBERSHIPS
U.S. CONSUMERS PURCHASED SPORTING GOODS WITH A TOTAL VALUE OF MORE THAN
OF NEW FRANCHISES ARE STILL IN BUSINESS AFTER 5 YEARS
20%
$64 BILLION
Nearly of Americans took part in sports, exercise or recreational activities every day SOURCE: Bureau of Labor Statistics
Study done by Arthur Anderson/now Accenture on a sample of 400
62% OF ALL NEW BUSINESSES CLOSE AFTER 6 YEARS
SOURCE: National Sporting Goods Association
THE U.S. FOOD TRUCK INDUSTRY WAS VALUED AT
U.S. Small Business Administration
$856.7 MILLION DOLLARS Landlords love franchises because of their 97% success rate THE UNITED STATES HOLDS THE LARGEST HEALTH AND FITNESS MARKET SHARE WITH GYMS, HEALTH AND FITNESS CLUBS, GROWING AT AN ANNUAL RATE OF 3.6 PERCENT AND THE INDUSTRY REVENUE GROWING AT A SLIGHTLY HIGHER RATE OF 6.1 PERCENT CURRENTLY.
38,477
50 FRANCHISE CONNECT | SEP-OCT 2019
SALES FOR THE PET SERVICES OF GROOMING AND ANIMAL BOARDING TOTALED OVER
$5.2 BILLION
DOMINO’S STORES ACROSS THE GLOBE SELL AN AVERAGE OF
3 MILLION PIZZAS A DAY
© FRANCHISE CONNECT MAGAZINE
SOURCE: Broadway World; IBISWorld
Helping franchises thrive is important. Our expertise and knowledge of franchise specific lending, combined with our full-service banking capabilities, enables us to create solutions that fit your unique needs. • Customized solutions for acquisitions or buy-outs • Lending and real estate expertise for expansions and new construction • Equipment financing for new purchases and upgrades • Payment solutions to manage your business and cash flow effectively • Employee benefit solutions • Insurance options to help protect your investment1 See what we can do for your business. Stop by your neighborhood branch or contact us at 1-800-724-6070 or mtb.com today.
Equal Housing Lender. Insurance products are offered by M&T Insurance Agency, Inc., not by M&T Bank; are Not FDIC insured; not a deposit in, obligation of, nor insured by any federal government agency; not guaranteed or underwritten by the bank; not a condition to the provisions or terms of any banking service or activity. All loans and lines of credit are subject to receipt of a complete M&T application, credit approval and other conditions. Other terms, conditions, fees and restrictions may apply. Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions, and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details. ©2019 M&T Bank. Member FDIC. 20435 (3/19)
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