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FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary Low-Cost FranchiseDictionary Franchising JULY 2018

FRANCHISEDICTIONARYMAGAZINE.COM

$5.95

THE ABC’S OF FRANCHISING

For Shine, Window Washing was just the THE ABC’S OF FRANCHISING beginning…

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

A business for every budget

38

This franchisor is on a mission to help new moms.

22

A standout franchisee shares his story.

14

Why Hispanic franchise owners are on the rise.


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866.423.6387 info@benetrends.com benetrends.com

July 2018 3


BE YOUR OWN BOSS! The World’s First VR Enabled Franchise Tradeshow

Franchise Expo

Unleash Your Inner Entrepreneur! The Great American Franchise Expo is the USA’s premier regional franchise expo series. Experience the power of virtual reality and tour the world’s top franchise brands from the expo floor. Educate yourself with the largest and most comprehensive series of seminars on franchising and business ownership. ______________________________________________________ • Choose from hundreds of concepts in dozens of industries. • Meet franchise law experts to guide you through the legal process. • Learn about financing options to fund your new business. • Interact with quality franchise company executives.

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2018 EXPO SCHEDULE Coming To A City Near You

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Take Your Business To Go • Unique In-Demand Business • Low Investment • Fast Startup • Mobile Business • Hands-On Training • Recurring Revenue Streams • Continued Marketing Support

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www.snapology.com/franchise

LEGO is a registered trademark of The LEGO Company, which is not affiliated with these programs. â

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con·tents

kən�tents/ noun

1. Your July lineup of stories and features 2. An amazing resource for franchisees

56 18

13

16

DEPARTMENTS

11 12 19 22

24 54 56 58

Letter from the Editor Buzzword What’s trending now.

Update

Franchising’s latest headlines.

Franchisee of the Month Midtown Chimney Sweeps’ Kurt Matthews shares his secret for success.

Entrepreneur

Building a business on a passion for serving others.

Interview

Dave Cooley talks about veterans in franchising.

Spotlight

Trending businesses you want to know about.

Last Word Why Soccer Shots keeps scoring in franchisee satisfaction.

July 2018 7


con·tents 36

16 FEATURES

30

28 Confessions of a Bargain Shopper 30 Value Proposition

You can have it all when it comes to franchise investments.

You don’t need millions to start a profitable business.

40 Low-Cost Franchises are the Future 43 Don’t Break the Bank Five reasons to consider low-cost franchising.

Franchising may be well within your reach.

46 Franchising on a Budget 48 Women in Franchising 50 Semi-Absentee Ownership 52 The 3 Hurdles to Business Ownership Yes, franchises with low-cost investments do exist.

Why franchising makes sense for many women.

Could this laidback model be right for you?

And how to get over them.

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ANCHISE

Sweep

Inspect

Trust • • • • • • • •

Low Investment Protected Territories Hands-On Training Online Training Website and SEO support Scheduling Software Customer Call Center Marketing Support

Please direct inquiries to: Byron@midtownsweeps.com or 720-575-7952, or visit AVAILABLE chimneyfranchise.com OPPORTUNITIES

• Large, protected territories • Fast startup, low overhead • Flexible, home-based business

Franchise Opportunities Available

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A FRANCHISE YOU CAN TRUST July 2018 9


on the cover

FranchiseDictionary FranchiseDictionary FranchiseDictionary FranchiseDictionary Low-Cost FranchiseDictionary Franchising JULY 2018

FRANCHISEDICTIONARYMAGAZINE.COM

$5.95

THE ABC’S OF FRANCHISING

For Shine, Window Washing was just the THE ABC’S OF FRANCHISING beginning…

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

fitness AUGUST 2018

THE ABC’S OF FRANCHISING

A business for every budget

38

22

This franchisor is on a mission to help new moms.

14

A standout franchisee shares his story.

Why Hispanic franchise owners are on the rise.

You don’t need millions to open a franchise business. We feature low-cost brands for every budget.

FranchiseDictionary Publisher/Editorial Director: FranchiseDictionary Jill Abrahamsen FranchiseDictionary editor@franchisedictionarymagazine.com FranchiseDictionary Executive Editor: Mary Lynn Mitcham Strom FranchiseDictionary THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

THE ABC’S OF FRANCHISING

Associate Editor: Maria Tattoli Web Designer: Audra Defalco

Contributors: Tim Church, Ryan Combe, Christopher Conner, Dave Cooley, Tom DuFore, Michelle Hummel, Faizun Kamal, Rick Morgin, Louie Picazo, Lisa Welko Marketing/Sales: Ruby Valencia (888) 315-9549, ext. 503 ruby@franchisedictionarymagazine.com

Graphics:

graphics@franchisedictionarymagazine.com

FranchiseDictionary FranchiseDictionary THE ABC’S OF FRANCHISING

franchisedictionarymagazine.com

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THE ABC’S OF FRANCHISING

Contact us: 301 North Harrison Street, Suite 9F, #444 Princeton, NJ 08540 info@franchisedictionarymagazine.com

franchisedictionarymagazine.com Entire contents copyright ©2018


let·ter

\�le-tər \ noun

1. A welcome note from our editor 2. A brief overview of what’s in this issue

It’s surprising to learn that many people still think franchising is only about big investments into fast-food restaurants. Today, there are exciting opportunities available for every professional background and every budget. Recently, our team went to the International Franchise Expo (IFE), where we were able to see some cool emerging brands. (See our coverage on page 12.) It’s exciting to meet the founders of companies and think about where they might be 10 years from now. It’s also interesting to meet prospective franchisees and see what they are looking for in a franchise investment. Lots of folks were surprised to find out that you can buy into a franchise for less than $150,000—or even under $50,000. Want to learn more? In this issue, we take an in-depth look at affordable franchises. In “Value Proposition” (page 30), we interview leaders of affordable franchises. What do their brands have in common? Low start-up costs, high margins, and they can all be run from home. Besides that, they’ve all taken interesting roads to success. We hope you find inspiration in their start-up stories and possibly find a perfect franchise for you. Best part is, you don’t have to break the bank to do it. All the best,

Jill Abrahamsen Publisher/Editorial Director editor@franchisedictionarymagazine.com

July 2018 11


buzz·word

\ 'bəz-'wərd \ noun

1. A compilation of franchising trends 2. What franchise experts are talking about

There was Something for Everyone at the IFE.

»

The Franchise Dictionary Magazine team had a blast at the International Franchise Expo last month. With more than 400 franchisors in attendance and tons of workshops and seminars, the event drew thousands of people from around the world.

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Show Time UPCOMING SHOWS Visiting trade shows is a great way for investors to meet franchisors face-toface. It’s not too soon to start making your fall trade show plans. The Franchise Show September 7-8, 2018 www.franchisingexpo.com Tampa Convention Center Tampa, FL

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1. Robert Cresanti, President & CEO of the International Franchise Association and Linda McMahon of the U.S. Small Business Administration, kicked off the opening ceremony at the International Franchise Expo. 2. Franchise Dictionary Magazine’s Editor-In-Chief Jill Abrahamsen and Sales Manager Ruby Valencia enjoyed meeting prospecive franchisees at the Magazine’s booth. 3. Thousands of people from around the world were in attendance at IFE. 4. The Waffle Experience’s COO, David Isbell, drew a huge crowd with his inventive new brand. 5. Benetrends’ National Account Manager Storm Miller was one of many Benetrends’ employees who advised aspiring entrepreneurs about funding options. 6. Vanessa Melman Yakobson, CEO of Blo, poses with our March issue, which featured her blow-dry bar franchise. At her booth, her team was giving blowouts to attendees. 7. Dozens of informative workshops and seminars went on during the three-day event at the Jacob Javits Center in New York City. Visit http://www.mfvexpo.com

Franchise Expo Midwest franchiseexpomidwest.com September 14-15, 2018 Donald E. Stephens Convention Center Rosemont, IL Use promo code FRANDICT for free admission. The Great American Franchise Expo www.franexpousa.com September 15-16, 2018 Santa Clara Convention Center San Francisco, CA The Franchise Show September 28-29, 2018 www.franchisingexpo.com Pennsylvania Convention Center Philadelphia, PA The Great American Franchise Expo www.franexpousa.com October 6-7, 2018 Mesa Convention Center Phoenix, AZ

July 2018 13


buzz•word

3 REASONS TO FRANCHISE A LOW-COST BUSINESS Here are three great reasons to consider franchising your low-cost business:

1. Huge Market

The lower the cost to open a franchise, the more exposure to potential franchisees. This means more prospects which should ultimately lead to more buyers.

2. Faster Launch Time

Generally low-cost businesses have quick start-ups from the time the franchise agreement is signed.

3. Faster Profitability

Very often, low-cost franchises operate from a home-based or shared office space model. This means overhead will be low, so there’s a faster path to profits.

—Tom DuFore

Tom DuFore is CEO of Big Sky Franchise Team. Learn more at www.bigskyfranchiseteam.com

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Why Hispanic franchise owners are on the rise More and more franchisors are making special efforts to attract Hispanic franchisees. And it’s no wonder. According to the last U.S. Census Report (2010), 55.4-million Hispanic people reside in the United States, and the population shows no signs of slowing down. A 2016 Bank of America Hispanic Small Business report spotlighted 1,000 Hispanic business owners, 100 of whom were Spanish-speaking only. The report exposed a high level of optimism amongst Hispanic business owners and found that a large percentage of them are hopeful for future revenue growth. Forbes.com recently indicated that Hispanics are opening new businesses 15 times more than non-Hispanics. Franchisors know a good market when they see it, so

they’re working hard to understand cultural differences to recruit qualified Hispanic franchisees. The Hispanic community is a rich and prolific market and Hispanic franchisees are instrumental in helping to expand into this untapped territory. Creating cultural diversity is now just as much a priority as executing strategic marketing plans. Franchisors are making Hispanic business owners feel at home from the get-go by hiring bilingual staff members, who can sell the brand to Hispanic entrepreneurs. Speaking Spanish doesn’t stop with staff members. Many franchisors are creating bilingual websites and marketing materials that connect the brand to the Hispanic entrepreneur. And of course, they’re embracing diversity in all the communities they serve.

Louie Picazo, CFE is a franchise consultant. He is an expert in franchise operations, development, and cultural integration. For more information, call (623) 826-6166 or email louiepicazo@gmail.com


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May 2018 15


buzz•word

4 MUST-HAVES FOR A SOCIAL MEDIA FRIENDLY WEBSITE 1. Social Media Icons

Adding social media sharing icons will provide your web visitors with a quick and easy way to spread the word about your business.

2. Eye-Catching Images Links with great images get more attention.

3. “Wow” Headlines

Put some serious thought into creating titles on your website pages. Ensure they are interesting, memorable, and eye-catching to get more clicks.

4. Social Media Feeds

Add a widget to your website that shows your latest social media posts. This is a great way to demonstrate your unique voice to make your brand more relatable, personal, and inviting. —Michelle Hummel Michelle Hummel is CEO of www.webstrategyplus.com

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Home-based franchises let you “have it all.” As a franchise consultant, I often hear people say, “I want to have it all.” Owning a homebased franchise might be the best way to obtain it. Most home-based franchises fall under the service-business heading, because franchisees provide a service at an outsourced location or a customer’s home. Home-based franchises can provide services to other businesses (B2B) or to consumers (B2C). Both models enjoy these benefits: Low overhead: Homebased franchises let you avoid costly rents and payroll. Unlike in a typical brick-and-mortar business, a home-based franchise doesn’t require a staff to man the operation during open business hours. Low start-up costs: The

initial start-up cost is generally much lower than with a brickand-mortar business. Franchise fees, training costs, and an initial start-up kit is usually enough to get you in business. Less working capital is needed: Most of these busi-

nesses start with you. Then you can hire additional employees only as you need them. There is no need to incur additional costs until you have clients signed on. You don’t pay a painter until they’ve completed a job. You don’t pay a tutor until they’ve had their first visit with a student. Get the picture? Resale is easier: When you decide it’s time to move on to another venture, it’s easier to sell a home-based franchise because there are no leases or store assets to transfer.

Linda Schaeffer has more than 25 years of experience in franchising in different roles. For more information, contact Linda at Linda@thefranchiseconsultingcompany.com

FranchiseDictionaryMagazine.com


contactus@webstrategyplus.com

June 2018 17


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FranchiseDictionaryMagazine.com contactus@webstrategyplus.com


up·date

\�əp- dāt\ noun �

1. The latest headlines in the franchise industry 2. Quick news bites to inspire you

Sharing the Spotlight

»

SCHOOL OF ROCK STUDENTS TAKE THE STAGE More than 500 students from School of Rock locations around the world headed to Summerfest 2018 in Milwaukee, Wisconsin, to play in their own student-led bands on six stages. Throughout the festival, students shared the spotlight with some of the biggest names in music, including mainstream and legendary rock acts, Imagine Dragons, Arcade Fire, and Journey. The event began on Wednesday, June 27, and finishes Monday, July 9. School of Rock provides students of all ages an exciting and engaging opportunity to learn guitar, drum, bass, keyboard, and voice.

July 2018 19


up•date In brief MAKING THE GRADE

Feel the Burn Mathnasium recently announced it has renewed its partnership with National PTA, continuing its mission to change lives through math. This is Mathnasium’s third year working with National PTA as a Founding Sponsor of National PTA’s STEM + Families initiative. “We are thrilled to extend what we started two years ago, providing engaging math experiences to students and families through Math Night events and grants to support them,” says CEO Peter Markovitz, Mathnasium co-founder. “We look forward to working further with National PTA, our valued partner, to bring quality math experiences to kids and parents, inspiring them to further explore STEM subjects and activities. Together, we truly are changing lives through math.” In the 2017–2018 school year, Mathnasium sponsored 35 $1,000 National PTA STEM + Families Math Grants to local PTAs around the country to help schools host Math Night events.

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LOCAL BURN BOOT CAMP IS GIVING AWAY 14 DAYS OF FREE WORKOUTS The Fort Collins, Colorado, Burn Boot Camp is giving away 14 days of free workouts to help clients achieve their fitness goals. Todd and Casey Sussman own the Fort Collins location. Casey started out as a member of a local Burn Boot Camp in North Carolina. Instantly hooked on the concept and the results, Casey decided to break out of her comfort zone and open her

own fitness business. “Casey and Todd are joining the strong network of Burn Boot Camp franchise operators at an exciting growth point for the brand,” said Devan Kline, CEO, and co-founder of Burn Boot Camp. “The Fort Collins location is well on its way to transforming the lives of residents and creating a meaningful community environment under their guidance.”

Pizza with Purpose PROTECTING TODAY’S TEENS MOD Pizza is introducing “The Isaac pizza,” in partnership with The Jed Foundation (JED), a leading nonprofit that exists to protect emotional health and prevent suicide for our nation’s teens and young adults. The Isaac pizza will shine a light on teen suicide and

FranchiseDictionaryMagazine.com

mental health and be available until October 1, 2018, during which time MOD will use its platform to help connect employees, customers, and communities to JED. MOD will also donate at least $50,000 to support JED’s programs and initiatives.


For Lease

5,000 - 23,340 SF Industrial/Flex

Possible retail or wholesaler 11,640 vehicles per day on Market St.

Click to View Full Listing

NJ Transit stop at building

932 MARKET STREET PATERSON, NEW JERSEY

For More Information: John Sawyer, Sales Associate 201 488 5800 x195 • jsawyer@naihanson.com

195 North Street, Suite 100 • Teterboro NJ 07601 | 10 Lanidex Plaza West • Parsippany, NJ 07054 | naihanson.com

July 2018 21


fran·chi·see \ fran-chī-zē, -chə-\noun

1. An outstanding franchise owner 2. Making “Plan B” work

KURT MATTHEWS

Midtown Chimney Sweeps Central New Jersey

H

By Jill Abrahamsen

aving worked for more than 30 years in the volatile field of advertising and marketing, Kurt Matthews wanted more control over his future while still using the customer service skills he honed throughout his career. At a crossroads, he starting thinking of “Plan B.” One day, while getting his chimney serviced, Matthews looked up and said to himself, “I can do that.” For a long time, he had thought about starting a business, but wanted something he could learn quickly. “Chimney sweeping looked like a lot of fun,” says Matthews. Having worked with many franchise businesses in his career, Matthews knew that investing in a franchise was a safer investment than starting something on your own. “I immediately wondered if there was a franchised chimney business,” he says. With a quick Google search, Matthews found Midtown Chimney Sweeps and spoke with founder and CEO Byron Schramm. Matthews scheduled a discovery day and flew out to Denver to meet the corporate team and learn more. Ironically, the day before he flew out, he was laid off from his job in advertising. “One thing about going after “Plan B” when there’s no more “Plan A,” is 22

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In order to promote his business, Kurt Matthews sponsors the Somerset Patriots, a local professional baseball team in his area (opposite page). Matthews and Midtown Chimney Sweeps founder and CEO Byron Schramm work in the field during training (below, left). Matthews enjoys the chimney sweep business and has used his advertising expertise to market the business by building strong relationships in his community.

that “Plan B” really has to work.” And it did. Matthews started by following Schramm’s advice: “Be the mayor of your town.” He meant that the best way for Matthews to market the business would be to put himself out there and meet people. Matthews kicked off the business in 2017 with a huge welcome party and gave discounts on chimney services to family, friends, and neighbors. He also joined the local chamber of commerce and networking groups. He exhibited at local street fairs and events in order to meet people in the community and get his name out there. “I really pounded the pavement and it more than paid off. In this first year, I’m earning as much or more than I did in advertising and I have control over my destiny,” Matthews says. “My marketing background really helped me promote the business at a local level, and corporate does a tremendous job with SEO (search engine optimization) and marketing on a national level.”

Matthews hosts “lunch and learns” with local Realtors to make them aware of potential chimney hazards and to teach them about fire safety. “I’d like to think I can make a difference and potentially save lives. Getting a chimney inspected is a very important step for potential home buyers and my goal is to make Realtors aware of this,” Matthews adds. There are no regrets for Matthews, in fact, he wishes he started the business sooner. His advice to potential franchisees is to follow the system. “The franchisor does all the heavy lifting in creating a system that works. It’s there to help franchisees succeed,” Matthews adds. “I’m actually amazed that the process was so easy. It’s really cool how it all just works. The freedom of being your own boss is so liberating. I look back and think ‘what was I so worried about?’” For more information, visit https://www.midtownsweeps.com

July 2018 23


en·tre·pre·neur änn-trə-p(r)ə-'nər\noun

1. One who manages and assumes the risks of a business 2. Building a business on the passion of serving others

E

By Jill Abrahamsen ntrepreneurs are a different breed. They are out-of-the-box

thinkers who are innovative and, generally speaking, quite extraordinary. In the case of Shine CEO and founder, Chris Fisher, you might say he’s extraordinarily extraordinary. Not only did Fisher launch Shine, a window-cleaning franchise, when he was in his early-20s, but he uses his business—and has dedicated his life— to support orphaned children in Uganda. Incidentally, he and his wife have three adopted children, and have another three of their own. Far from ordinary. Right out of college, back in 1998, Fisher started Golden Eagle Window Cleaning, named after the basketball team he played for at Cornerstone University. He invested in a truck and some squeegees and started cleaning windows. As the business grew, Fisher added holiday-decorating services as a way to retain employees through the off-season. Fisher changed the company name to Shine, which was better suited for both services and also represented Fisher’s passion for serving others or “shining a light.” By 2011, the business was ready for franchising and two of his long-time employees became his first franchisees. With everything going well, Fisher and his family hit a roadblock. His wife was diagnosed with breast cancer. She recovered, but the experience changed 24

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the family’s outlook. Fisher set off to do mission work in Uganda—bringing along his large family—and handed his CEO position over to a trusted friend. “I put Matthew DeYoung in charge. We both had faced adversity and shared the same faith and culture. The most important thing in our business was carrying on that culture of service,” says Fisher. More than two years later, Fisher came back to Shine as a franchisee, opening a new location and re-familiarizing himself with the business. He took back the CEO reigns a few years later. Today, his goal is to create opportunities for individuals to become leaders. “Our employees and franchisees are young. We want to set them up for success,” he says. Now very involved in the business, Fisher is looking to partner with franchisees who share his values. “It’s all about service. It sounds simple, but we’re looking for nice and friendly people who put the customer first.” For more information, visit https://www.shine-windowcleaning.com


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3 1. Fisher in Uganda playing with local children. 2. Window cleaning is at the core of the Shine franchise. 3. Fisher’s goal for his franchisees and employees is to create opportunities for them to become leaders. 4. Fisher poses with his wife and six children. 5. Shine’s holiday decorating arm was added as a way to retain employees through the off season. This part of the business can also be purchased as an individual franchise, which works well for people with other seasonal businesses, such as lawncare.

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2018 - 2019 U.S. SCHEDULE

Meet face-to-face with the hottest business ownership candidates in each city.

FALL 2018

SPRING 2019

TAMPA, FL

BOSTON, MA

COLUMBUS, OH

Tampa Convention Center

World Trade Center

Ohio Expo Center

September 7 & 8

PHILADELPHIA, PA September 28 & 29 Pennsylvania Convention Center

January 11 & 12

NEW YORK / NEW JERSEY

VIRGINIA/ WASHINGTON D.C.

Meadowlands Exposition Center

Dulles Expo Center

February 16 & 17

DALLAS, TX

October 5 & 6

SAN DIEGO, CA

Dallas Market Center

March 2 & 3

LAS VEGAS, NV October 26 & 27

Orleans Hotel & Casino

April 6 & 7

CHICAGO, IL

April 27 & 28

Del Mar Fairgrounds

Donald E. Stephens Convention Center

ORLANDO, FL

HOUSTON, TX

Orange County Convention Center

NRG Center

March 16 & 17

ATLANTA, GA

March 30 & 31

May 18 & 19

November 9 & 10 Cobb Galleria

PRODUCED BY:

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www.USFranchiseShows.com July 2018 27


Is that really what they are charging?

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CONFESSIONS OF A BARGAIN SHOPPER

I

By Jill Abrahamsen ’m not a coupon-cutter and I won’t waste my time in long lines

on Black Friday, but I do love a good bargain. And I don’t mean getting a low-quality purchase for an even lower price. I just want the most value for my dollar. So when I’m in the market for a new purse or shoes, furniture, or anything really, I never pay full price. I wait for sales, or I hit the outlet stores. It’s so satisfying to get exactly what I want for a fraction of the original retail price. Most people share my philosophy, but it’s easy to get swayed by marketing. It drove me crazy when my kids started becoming aware of brands. At just 12 years old, my son said he “needed” a pair of $200 basketball sneakers. I about hit the roof. His perception at the time was that the sneakers would make him play like Lebron James. When it came to prom shopping last year, my teenage daughter thought the best dress was the most expensive one despite the fact that the less costly one fit her far better. There are always misconceptions about value and price—even when it comes to purchasing a franchise. The most common myth, though, is that franchises are only for big investors. Wrong. According to FranData, one-third of all franchise opportunities cost less than $100,000. And there is no direct correlation between the cost of a particular

franchise and the return on investment. While some of the big restaurants and hotel brands can require millions in initial costs, there are tons of low-cost options promising high returns. With some 4,000 brands available today, franchise options go way beyond McDonald’s. There are low-cost franchises in almost every business sector, and many can be run out of your home. Service businesses, like home and health-care are great areas for low investments and high returns. Folks mistakenly think that the larger the investment, the higher the profit margin. Not true. Many big-ticket franchises come with high overhead and expensive build-outs and leases that all cut into margins. Low-cost brands, on the other hand, will often yield high margins since many have low overhead costs. So, before you assume that bigger is better, take a look at all the costs involved in purchasing and maintaining a particular franchise. You may find that less is actually more.

July 2018 29


COVER STORY

Value proposition You don’t need millions to open a profitable business.

“Y

By Jill Abrahamsen

ou get what you pay for” is a term that’s generally true when it comes to shopping for merchandise. But in terms of franchising, “low cost” can mean high returns, high quality, and smart business. On the following pages, we interview leaders behind some of the most lucrative and innovative low-cost brands. All have a remarkable story and offer insights into their affordable franchises. Take, Tony Lamb, for example. He started Kona Ice as a side business after a bad ice cream truck experience. The brand quickly took off and, in a few years, expanded to more than 1,000 locations. Three of our featured franchisors started out as young moms who wanted to contribute to the family income while raising their children. Shannon Wilburn’s low-cost consignment business, Just Between Friends, was run out of her living room at first and has grown into a lucrative franchise with more than 150 locations in 30 states. Denise Stern started Let Mommy Sleep after experiencing sleepless nights of her own as a new mom. She recognized a need and launched an overnight baby-care service for new mothers.  Back in 1988, Young Rembrants founder, Bette Fetter, offered art classes to children for $5 a head. Now an international brand, the company still runs on the same principle—instilling a love of art in small children with a business that has low overhead and a family-friendly schedule.  So if you think you can’t afford to buy into a franchise, think again. Today, there are franchises to fit every budget and suit every lifestyle. The question is, which one is the perfect fit for you? 30

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Tony Lamb

KONA ICE

TONY LAMB PINCHES HIMSELF EVERY SO OFTEN BECAUSE HE IS LIVING A DREAM “It’s been so surreal,” he says about his Kona Ice success. Prompted by a bad ice cream truck experience, Lamb founded Kona back in 2007 as a side business. He wanted to launch a “friendlier, healthier” version of the old summer standby. “Why would I want my kids to run into the arms of someone who looked and acted like an escaped convict?” he jokes about the ice cream truck driver he encountered.   Lamb envisioned a fun, family-friendly, mobile shaved-ice truck when he designed the business. To that end, the trucks are adorned with colorful characters and palm trees painted on the facades, and they play tropical music when they roll in. Franchisees have routes, but most of the income comes from events like festivals, local ball games, and even at zoos. The product line has developed over time and Kona is constantly looking to create healthier options that are also fun. The patented “flavorwave” allows customers to add their own flavors—as many as they like. Fruit is the main ingredient in Kona’s “FruitFirst” ice. Sweetened with a combination of pure cane sugar and all-natural Stevia leaf extract, the 24-calorie snack meets federal nutritional standards for school snacks. More than 1,070 territories have been awarded since the brand started franchising in 2009, and Lamb is still very much involved in the business. “I talk to every prospective franchisee to make sure our goals are aligned. I want them excited about Kona. I’ve walked away from big investors who offered million-dollar deals. I want to grow Kona responsibly,” Lamb says. Fundraising is a huge part of Kona’s culture. Every year, franchisees raise millions for community organizations across the nation. “I’m looking for people who have an interest in community involvement and want to be owner-operators.” Lamb attributes the brand’s success to the simple business model. “With low-cost investments and quick startups, owners enjoy fast ROIs. More than half of our franchisees are first-time business owners,” he says. “It’s an easy business to run and, let’s face it, selling sweets to kids is not a hard sell.” For more informaton, visit https://www.kona-ice.com

July 2018 31


COVER STORY

Shannon Wilburn

JUST BETWEEN FRIENDS

AS A YOUNG MOM, BACK IN 1997, SHANNON WILBURN WANTED TO CONtribute to her family’s income and still have the flexibility to be home with her children. Working with other moms in her community, she and co-founder Daven Tackett started Just Between Friends, a consignment business that they first ran out of Wilburn’s own living room. “We had 17 consignors set up shop and we even used a utensil bin as our cash drawer. We promoted it to moms in our neighborhood, schools, and church. In our first event, we sold $2000 worth of merchandise,” she recalls. After the successful launch, Just Between Friends hosted more events and soon were setting up shop at the local Fairgrounds in nearby Tulsa, Oklahoma. It grew from there, and the founders tested the business in other cities and eventually started franchising in 2003. Now with more than 150 franchises in 30 states, Just Between Friends offers a low-cost business that’s enjoying accelerated growth. “We provide a marketplace for families to make and save money on items that they no longer need. Today, being thrifty is trendy, and research shows that trend is growing. Yet much of this market is still untapped,” Wilburn says. Every year, franchisees organize two or three pop-up consignment events at a local venue. Local families sign up as consignors to sell new and gently used children’s and maternity items that they have outgrown. Consignors bring their items to the venue, and an online bar-code system helps price and prepare items. Franchisees and their teams organize and set up the events—typically in one day. They organize and oversee all details and handle local marketing. During the weeks leading up to the event, they may put in a lot of hours, but the rest of the year, the schedule is flexible. Franchisees usually spend about 20 hours a week prepping for the next event and marketing their businesses. Wilburn attributes the success of Just Between Friends to her franchise partners. “Our franchisees’ core values and desire to affect their community in a positive way has been a game-changer for our brand.” For more information, contact https://jbfsalefranchise.com 32

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Bette Fetter

YOUNG REMBRANDTS

WHEN BETTE FETTER STARTED TEACHING ART CLASSES TO CHILDREN out of her home back in 1988, she never dreamed the business would turn into a multimillion-dollar franchise with more than 100 locations around the world. Then a stay-at-home mom of four, Fetter began offering children’s art classes as a way to make extra money. At first, Fetter charged $5 a head, but as her service grew in popularity, she brought the business to local preschools. Using her fine-arts education and background in child development, she created a proprietary method to teach children drawing, the fundamental skill of all visual arts. Today, the core of her business—now known as Young Rembrandts—remains the same. The Young Rembrandts’ program focuses on teaching children to draw, using demonstration and a structured step-by-step process. Through weekly classes, students are exposed to a wide variety of subject matter, including artistic concepts, art history, and mastery of their materials. The company started franchising in 2001 after 13 years in business. “We had a tremendous foundation in place before offering franchise opportunities. My husband had a vision for growing the business and franchising made sense,” says Fetter. Offering a low-cost, feel-good business, Fetter is looking for owner/operators who want to be involved in the day-to-day operations. “I’ve had former students come back and are now teaching with us. We instill a love of the arts and that’s what I’m most proud of,” says Fetter.  For more information, visit http://www.youngrembrandts.com

July 2018 33


COVER STORY

Frank Samson

SENIOR CARE AUTHORITY

AFTER GOING THROUGH HIS OWN EXPERIENCE WITH AGING PARENTS, Frank Samson recognized a need for a very important service. “Senior care can be a daunting task for families,” says Samson. “Adult children need guidance when it comes to the care of aging parents.”  After doing years of research, Samson launched Senior Care Authority in 2009. Like the name suggests, Senior Care Authority works with families of seniors and helps them find proper care and housing in assisted-living communities. The company also helps customers navigate through the complex healthcare system by offering counseling services. Franchisees can work out of their homes with very low-overhead costs. Training is a multi-layered process, including an on-line portion, coaching, and field work. The field work involves visiting assisted-living facilities and setting up partnerships. “While we have national and regional agreements in place, a lot of the assisted-living communities and residential-care homes are local businesses and franchisees earn commission from these locations,” says Samson.  With a background in franchising, Samson knew his concept was a good business to be scaled. He spent several years perfecting the model and started offering franchising opportunities in late 2014. With more than 60 locations, the business is enjoying rapid growth. “Our franchisees are doing well, and we were recently recognized by Franchise Business Review as a leader in franchisee satisfaction,” says Samson. For more information, visit www.seniorcareauthority.com/franchise

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July 2018 35


COVER STORY

The Blue Family

BLUE MOON ESTATE SALES

TURNING A HOBBY INTO A LUCRATIVE BUSINESS IS JUST A DREAM FOR most people. But in the case of the Blue family, it’s become a very happy reality. Throughout her life, Deb Blue found herself frequenting estate sales, where she developed an expertise in appraising antiques and other household items. Sharing this passion with her husband, Ken, the couple launched Blue Moon Estate Sales back in 2009. A very simple model, Blue Moon appraises household items, stages homes, and runs estate sales for folks who are relocating or downsizing. Franchisees are paid on a commission basis and sales take place in customers’ homes. The start-up costs are low and so is the overhead. “This is a really fun business, and no job is ever the same,” says Deb. It didn’t take long for business to boom. The couple enlisted their son, David, to help run things in 2011. One day while Deb was driving on a highway, she saw a billboard that read “Franchise Your Business.” “We were trying to figure out the best way to scale the business, and franchising really made sense.” By June 2013, the Blues started offering franchising opportunities. Today, they have 31 locations. Franchisees take part in two-week training sessions, which teach everything you need to know about running the business, including gold and silver testing, staging, pricing, and sales techniques. “Our franchisees usually have their first client interview within a week of training,” says Deb. “We give constant ongoing support to our franchise partners. Through our Facebook group, franchisees are constantly collaborating on pricing and running the business. There’s great strength in numbers.” For more information, visit https://bluemoonestatesales.com

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July 2018 37


COVER STORY

Denise Stern

LET MOMMY SLEEP

ANYONE WHO’S A PARENT KNOWS THAT NEWBORNS ARE DEMANDING. Even when the pain of sleepless nights has long passed, the memory of exhaustion lives on. Denise Stern certainly remembers her sleepless nights, in fact, she has built an entire franchise business based on her experience. Giving birth to twins when her oldest son was just 17 months old was challenging. She was sent home from her delivery on “bed rest,” but her situation was far from restful. She needed help, and she especially needed a good night’s sleep. Later, recalling her experience, Stern started Let Mommy Sleep to help moms of newborns get much-needed rest. A simple service, Let Mommy Sleep sends registered nurses and certified caregivers to the homes of new mothers to care for babies overnight while mom gets some shut-eye. The business offers other services too, including a gift registry—instead of buying clothes or bibs, you can give mom the gift of sleep. There’s also in-home postpartum educational visits for the whole family. They cover all the bases, such as diapering, bathing, and feeding support. Wanting to help military families, Stern created Mission Sleep, (https://missionsleep.org), a non-profit arm of Let Mommy Sleep. It provides free, overnight newborn care to military families and first responders whose babies arrive when a parent is deployed, wounded, or deceased. “This business has changed my life and the lives of so many others,” says Stern. Although franchisees themselves don’t need to be registered nurses, they do need to be excellent communicators and good multitaskers. But mostly, Stern wants to partner with franchisees who share her passion. “I’m looking for people who ‘get it’ and want to make a difference; people who are excited about this business.” For more information, visit http://www.letmommysleep.com

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July 2018 39


Low-Cost Franchises are the future. Here’s why.

I

By Ryan Combe

ve worked with almost every type of franchise concept imaginable: Yoga, burgers, tanning, carpet cleaning, even divorce mediation. Every couple years I see “hot” new franchise concepts emerge. Soon dozens of similar brands are right there next to them.

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“The risk in starting a business

for $50,000 versus $500,000 is significant.” I got into franchising during the second frozenyogurt craze. Since then, I’ve seen other concepts take off: the better-burger boom, education, dozens of fitness concepts, build-your-own pizza, eyelash extensions, home health, and everything else in between. (If only someone would start a poke concept!) Many have come and gone while others have stuck around, but if I’m betting on the future of franchising, I’d lay heavy on low-cost brands. Here are five reasons why. Less Risk: Let’s start with the obvious. The risk in starting a business for $50,000 versus $500,000 is significant. It’s more than just the additional $450,000. Most pricier concepts require physical locations, and good retail locations require personal guarantees. This means you’re committing to pay the rent on a space for the entire term of the lease, which is typically five or 10 years. The majority of low-cost brands don’t require storefronts, which means no personal guarantees and much less risk. Easier Access to Funds: It’s hard to come up with $300,000. Most franchises encourage you to get an SBA loan, roll over a retirement account, or wait for an inheritance, but all of those options can take a long time and carry a lot of risk. Unless a brand offers inhouse financing, be prepared for a bumpy ride getting funds together.

Fewer Employees: Have you walked into a restaurant lately? If you have, you’ve probably noticed the “Help Wanted” sign on the door. Finding and retaining employees is becoming increasingly difficult. Last year, restaurant employee turnover was 133 percent, according to research firm TDn2K. Dealing with dozens of employees is hard. Most lowcost franchise concepts require only a handful of employees and thus eliminate one of the top obstacles of business owners today. Shorter Day-to-First-Dollar: How long it takes between signing a franchise agreement and making your first dollar should be at the top of every potential franchisee’s checklist. Low-cost brands on average have a significantly shorter ramp-up period, meaning people start making money faster, which helps to increase their chances of success. Millennials Want to be Business Owners: Almost every brand I see is heading for a major problem within the next 10 years. Business models do not attract millennials. Products might attract millennial consumers, but business models do not. About 62 percent of millennials want to start their own businesses, but their average student-loan debt is $30,000. This is a problem. They want and need a low-cost opportunity.

Ryan Combe has spent his entire career in franchising. Launching his first concept in 2007, in 18 months he grew the brand to more than 20 units open and more than 80 units sold. Since then, Combe has worked with dozens of franchise brands in all industries and sold thousands of franchises. Contact Ryan at (801) 831-8521, ryan@betterwayfranchise.com or visit https://www.betterwayfranchise.com

July 2018 41


THE #1 BEST SELLER

HIGHEST REVIEWED FRANCHISE BOOK ON AMAZON

“Smart, definitive and fun to read.” - Tucker Carlson “Consume this book!” - Richard Boyatzis “A powerful book.” - Richard Belzer Thinking about buying a franchise? This should be your first stop. Get educated.

This comprehensively researched and deftly written franchise guide brings together experience and fact to give you the tools you need to understand which franchise is right for you. With insights from respected franchise leaders and a thorough knowledge of franchising, this book will help you understand and master the 4 Critical Steps to finding the Ideal Franchise.

www.TheFranchiseMBA.com


Don’t Break the T

BANK

hink buying a business means breaking the bank? Think again. Affordable franchises may be well within your grasp. Low-cost franchises may not have the big payouts that often come with huge brand names, but they offer easier and more affordable startups and faster profitability. Since low-cost franchises require taking on less debt, owners have stronger cash flow and more flexibility when it comes to paying bills. And since you’re still part of a franchise network, you do not have to sacrifice support, training, or help from your franchisor. On the following pages, we look at promising small-business categories with minimum investments and maximum potential.

by Lisa Welko, Certified Franchise Executive

July 2018 43


Don’t Break the

BANK

Low-Cost Options

» Non-Medical Home Health Care

WHAT THEY DO: Non-medical home-care services help elderly folks live at home longer, because they have assistance. Aides come in on a regular basis and help with cooking, cleaning, and personal-hygiene tasks. Sometimes they help with grocery shopping and other errands, too. INDUSTRY FORECAST: According to the Bureau of Labor Statistics BLS, approximately 1.3 million additional jobs within the home-care field will be added by the end of 2020. Given the aging population and the dual-working homes of so many Gen-Xers, home-care careers look promising.

» Commercial & Residential Cleaning

WHAT THEY DO: Who knew cleaning up messes could be so rewarding? There are many avenues to consider here: Commercial cleaners keep banks, schools, churches, gyms, among other well-trafficked areas sparkling clean, while maid services keep homes looking their best, and disaster-relief cleaning services pick up after unpredictable emergencies. INDUSTRY FORECAST: Allied Market Research projects that the global cleaning-services market is expected to grab $74.299 million annually by 2022, with maid services accounting for the largest share in the market. According to franchisehelp.com, a website for franchise entrepreneurs, office cleaning and janitorial services account for approximately 31-percent of commercial-cleaning revenue.

» Home Inspection Services

WHAT THEY DO: When purchasing a house, a buyer has the opportunity to get it inspected. The goal of the inspection is to protect the homebuyer by presenting the property’s overall condition. INDUSTRY FORECAST: The BLS says the home inspection industry is expected to grow 10 percent by 2026. That’s faster than the average for many occupations. Although potential homeowners aren’t required to have a home inspection, according to the BLS, the public’s interest in safety will fuel the growth.

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» Cruise Coordinators WHAT THEY DO: If you want a home-based business that offers high-yields for low upfront costs, become a cruise coordinator. These helpful planners coordinate travel packages for individuals, private groups, and businesses. According to the Cruise Lines International Association (CLIA), even in today’s Web-savvy world, most cruises are sold by travel agents, not on websites. INDUSTRY FORECAST: The cruise industry continues to grow, with 27-million cruisers expected in 2018. That’s a million more than last year. Additionally, 27 new ships are coming out in 2018, according to the CLIA: 10 for river cruising, 17 for ocean.

Listen to Lisa: Low-cost franchising 1. How much can you afford to invest? Low-cost franchises vary in initial costs. Figure out how much you can afford to invest early on. No one wants to fall in love with a business that he can’t afford. Once you know your parameters, look at several options and make your ultimate decision based on which business is the right fit. 2. Calculate fixed costs and overhead including: Rent and utilities; telephone and communications; accounting and bookkeeping; legal, insurance, and licensing fees; postage; technology; advertising and marketing; and salaries. 3. Calculate variable costs including: Cost of goods sold; materials, supplies, and packaging; direct labor costs (customer service); direct sales and marketing. 4. Make a financial forecast: This will help you develop operational and staffing plans to help make your business a success. Have two plans: First, an optimistic plan. This is based on your validation process and speaking with successful owners in the system. Second, develop a worst-case scenario plan. Chances are that in your first year, you’ll fall somewhere in the middle. Without a Year One Plan, though, most won’t see Year Two. Lisa Welko helps aspiring business owners determine which specific franchise opportunities align with their strengths, goals, and values. For more information, visit www.integrityfranchisegroup.com

July 2018 45


Franchising on a

Budget by Christopher Conner

Yes, franchises with low-cost investments do exist. Here’s why they’re worth considering. More and more franchises are transitioning from storefront locations to work-from-home environments. Sure this means more convenience for franchisees, but it also means a stream of low-investment franchise opportunities, as the cost of opening these service-oriented businesses is a fraction of their brick-andmortar counterparts. Home-based businesses provide all kinds of services and products, which do not require the investment in capital, equipment, fixtures, or leasehold improvements inherent in traditional fixed-location businesses. Without these common expenses, there’s the opportunity for low-budget entrepreneurship. People who didn’t think they’d ever be able to own businesses have an affordable way in. Without a retail location, however, marketing can become tricky. Working from home requires that the franchisee goes out and markets the business in order to generate sales. So before investing in a low-cost franchise, confirm that the model comes with a great franchise marketing system. You want to ensure processes, defined strategies, and proven sales methodologies are in place, so you know you could be successful in your market. That said, low-cost franchises are available in a wide range of industries and they’re always worth a look. After all, you can’t beat the price. 46

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Food

Food service has a reputation for being a market segment reserved for the rich. It makes sense. The cost to open a fixed-location restaurant can exceed $500,000 without much effort, and then you still have to add the working capital needed to be profitable. But today, the food-service franchise market is full of excellent opportunities that don’t require the same capital outlay or expense, and yet they still have incredible financial models. Take food trucks, for example. The market has exploded in recent years with brands like Gyro Chef, which packs years of full-service restaurant experience into a convenient, efficient, and compact food truck operation. Kiosk and farmers’ market franchise models incorporate trailers and carts, which serve products to customers from small, low-investment service kiosks. These businesses can be started with a fraction of the investment of a traditional restaurant, and given the low operating overhead, can have very high profit margins.

Professional Services

Work-from-home businesses providing accounting services, financial planning, insurance, or consulting services have also taken rise in the last decade. Strong performing brands have become successful franchise sys-


tems in recent years. Traditionally, if you wanted to launch a professional-services business, you needed a large office, receptionists, and staff, but today you can start these businesses with low investments. You can start a professional sales-training franchise through Sandler or RC Evans Institute. Or, try a small business consulting service with Padgett small business franchises, or a business brokerage firm with Transworld or Capital Business Solutions, any of which can be managed from home. You could consider an ATM-service business with Aspire ATM systems, where a franchisee manages a territory of placed ATM machines. Many great franchises today allow people to work from a home office, which means more flexibility, better quality of life, and a lower investment to get up and running. Today’s consumers accept home-based businesses to be as credible as those with traditional offices

or retail locations, because their priorities are value and service.

Commercial Locations

Low-cost franchises can also be found in businesses that require a commercial location, but can be developed for less money. GrassRoots Lawncare is a great example, a low-cost lawn-and-turf-care franchise that just came to market. A franchisee would need only vehicles and a small office location, putting an initial investment at just over $100,000. The restoration market, including Restoration 1 and 911 Restoration, has some excellent options as well. Conner leads the Franchise Marketing System’s team in business consulting and franchise development projects. For more information, contact Chris.Conner@FMSFranchise.com

July 2018 47


WHY FRANCHISING MAKES SENSE FOR MANY WOMEN by Faizun Kamal Climbing the corporate ladder is always hard, but it’s especially tricky for women. Often, they’re considered unambitious compared to male peers, because though they work, they’re still the primary caretakers of their families. Some may have to leave the office at 5pm to pick up children from daycare, others can’t attend 7pm meetings because they don’t have childcare. Many can’t break away from home for overnight work trips. And for women who took time off to raise their kids, it becomes challenging to get back in the workforce. All of these realities chop away at a woman’s opportunity for success. That’s why many ambitious women are opting out of Corporate America and choosing to go the franchise route. Investing in a franchise becomes a very effective, and ultimately very fulfilling way to brave the workforce—but this time, on their own terms. Owning a franchise is a great option

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for women who want to work and earn income, but can’t put in the hours that traditional jobs demand. Business ownership gives women the flexibility to grow at their own pace, while working hours that gel with their personal responsibilities. Many female franchisees opt for semiabsentee-owned franchises. These franchise business models allow for managers to run the day-to-day operations, while the franchisee checks in and spends about 10 to 20 hours per week on the business. Franchising offers a range of ownership models in a range of industries. So if you are a professional woman who is tired of struggling through a corporate career and wants a job that offers lucrative incomes and work-life balance, there may be a franchise out there for you. Want to find out about franchises that may be the “perfect fit” for you? Email: faizun@thefranchiseconsultingcompany.com


Thinking about buying a franchise? Call us rst. “Just like a realtor can help you nd a home, the experts at The Franchise Consulting Company can help you nd and understand your franchise options.”

WHAT WE DO We help you identify, investigate and get educated about franchise businesses. Like a realtor, our services are free of charge to you as our fees are paid by the seller. MARKET LEADER The Franchise Consulting Company is the market leader for entrepreneurs structuring a comprehensive investigation to analyze the franchise options available to them. EXPERIENCE With over 2000 years of collective experience helping individuals purchase, operate and exit franchise businesses, we invite you to leverage our knowledge of franchising. FREE OF CHARGE If you are thinking about owning a franchise, reach out to us and we will connect you with one of our 100+ local consultants across the USA. Free of charge. SPECIAL OFFER Reference this ad to your consultant and receive a FREE copy of The Franchise MBA - the #1 Bestseller Refe and Amazon’s highest reviewed book on franchising.

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July 2018 49


SEMI-ABSENTEE OWNERSHIP Why it might be right for you.

S

by Rick Morgin

emi-absentee ownership is a great way to own a franchise without having it take over your whole life. As a semi-absentee owner, you’re relieved of the day-to-day operations and can focus on big-picture responsibilities: marketing, online efforts, and financials, to name a few. Your business runs under the direction of a highly trained, professional manager.

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“As a semi-absentee

owner, you work “on” the business, not “in” the business.” This type of ownership is ideal for anyone who wants to keep her corporate career and simultaneously build an asset. It you’re looking to transition away from corporate life slowly, semi-absentee ownership can be a great option. It lets you invest in something and still have the security of a regular job. Corporate executives who want to diversify their portfolios benefit from this type of ownership as do stay-athome parents who want to get back into the workforce and still have flexibility. Semi-retired professionals prefer semi-absentee ownership because it allows them to participate in their usual activities. Private equity firms also have the infrastructure in place to run and grow the business. How it Works Industries where semi-absentee ownership works best are essential services like haircare and beauty, simple or complex retail, fitness, therapeutic massage, automotive, specialty food, and healthand-wellness centers. Any business that can be staffed by people who are trained or certified lends itself to semi-absentee ownership. These owners often opt for multi-unit ownership. As a semi-absentee owner, you work

“on” the business, not “in” the business, which allows you to control your schedule. Figure putting in about 10 to 20 hours a week. Managerial skills like leadership, communication, and organization are very important. Your primary focus is on setting the tone of your company culture, starting with hiring the right manager. Having the right people in place helps you build equity and income. As attractive as semi-absentee ownership sounds, it’s not for everyone. Semi-absentee ownership may mean investing enough capital to open multiple units or acquire larger territory. You will also need to have a well-paying career, one where you can meet your personal obligations while you ramp up your business. Also, you should be able to delegate and step back so someone else can run your day-to-day operations. As with anything, when you start something new understanding the learning curve ahead can only help. At the start, you will probably spend more time on the business to get your arms wrapped around guiding your operation. Once you feel you are in control and things have settled down, you will find the balance you want and the ability to make a smooth transition to your new career.

Rick Morgin is an experienced and trusted finance and business development executive with success in increasing profitability and improving business processes. Contact him at rick@thefranchiseconsultingcompany.com

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3

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HURDLES TO BUSINESS OWNERSHIP And how to get over them

FranchiseDictionaryMagazine.com

by Tim Church


I

f you hang out at the office water cooler or local watering hole, you might learn that many people dream about owning a business. The idea of no longer “working for the man” or exiting “the corporate machine” is simply thrilling. But while so many people dream of taking charge of their professional destinies, most will never actually do it. An unscientific survey of some of the top franchise consultants in the country reveals that roughly one in 10 people who start researching business ownership opportunities will ever become business owners. So, what keeps people from taking the plunge? Here are three of the most common hurdles to small business ownership—and advice on what to do about them. THE HURDLE: MONEY How to Get Over It: True, some people just don’t have the funds to start or buy into a business. But many do—they just don’t know it. Consider a low-cost franchise. There are hundreds of low-investment franchises, which require $100,000 to $300,000 in start-up costs. With Small Business Administration (SBA) funding, most people only need a third of that amount. With a little thing the IRS invented, called “ROBS” (Rollover for Business Startups), people can pull money from their 401k accounts and avoid the tax penalties associated with early withdrawal. For home-based businesses—which dodge the usual high start-up costs that come with brick-and-mortar establishments—initial investments can be even lower than $100,000. Mobile businesses, where the business comes to customers, appeal to many entrepreneurs for exactly that reason. THE HURDLE: AMBUSHERS How to Get Over It: We know how it goes. You’re super excited about the companies

you’ve been researching and shared your enthusiasm with friends and coworkers. Then just as you’re about to buy a plane ticket to go meet a potential franchisor, BAM! Those friends start in with their horror stories. “Hey man, are you crazy? I knew a guy who went bankrupt in the first six months.” And so it goes. Your friends, coworkers, even your family may be negative or alarmist about your aspirations. Most people will never become business owners because of their own fears, so it’s hard for them to accept that you will. How do you defeat ambushers? Try to understand where they are coming from. Are they operating out of fear? Jealousy? Having this knowledge puts unsolicited advice in perspective. Next, do diligent research on potential franchises. The more research you do, the better equipped you will be to commit to your business plans and deal with unexpected problems when they arise. Consider enlisting a franchise consultant to help guide your research and also to share your ideas, concerns, and fears. THE HURDLE: LACK OF A TRANSITION PLAN How to Get Over It: This is where relying on the franchisor’s experience is key. A good franchisor will have a plan for your launch. Some franchises require full-time involvement. Other franchises want you to keep your day job while the business takes off. The point here is that you work with the franchisor to develop your transition plan as opposed to trying to figure it out yourself. That’s what franchising is all about. Tim Church has worked in franchise development since 1998 and has helped hundreds of people become successful business owners. Contact him at Tim@TheFranchiseConsultingCompany.com

July 2018 53


in·ter·view

\�in-tər- vyü \ � noun

1. A Q&A session with an industry expert 2. Dave Cooley on veterans in franchising

Dave Cooley is a retired U.S. Air Force lieutenant colonel with more than 24 years of service. He entered the world of franchising just over 20 years ago and has served as the vice president of four franchise companies. Today, he is a franchise consultant. Contact Dave@TheFranchiseConsultingCompany.com

Q

What makes franchising attractive for veterans?

A

Veterans are attracted to franchising for the same reasons as everyone else: They want to control their own destinies, be their own bosses, secure lucrative retirements, and possibly even provide a legacy for their families. A business is a wonderful thing to pass on to your children. Veterans often feel at home in franchising because franchise companies provide the training and support needed to become successful. Franchises operate similarly to organizations in the military, where veterans received training. Like in the military, once they receive training, they are expected to go out in the field and execute business plans. They train, then deploy and execute. Exactly like in the military.

Q

Besides discounts, what other perks do veterans get from franchisors?

A

Many franchise companies participate in the International Franchise Association’s Veterans Franchise Initiative, “VetFran.” Generally, franchise companies participate for two reasons: First, they want to acknowledge and thank veterans for their service. Secondly, they want to attract veterans to become franchise owners. Through this program, vets typically get discounts on franchise fees and other expenses, but they don’t get other considerations. Vets want to be part of the mainstream franchisee community and pull their own weight. Vets want to be part of the franchise “team” of franchisees and play under the same rules. They don’t want to be set apart.

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QA

Which business sectors are most popular with veterans?

Q

Lots of veterans are attracted to franchises where they can be hands-on owner/operators and do some of the actual day-to-day work themselves. As such, they gravitate to service businesses such as fire and water mitigation, construction-related businesses, power washing, junk removal, residential and commercial painting, and automotive aftermarket services and products, among others. Franchises in these categories typically require a low investment, and they can get into business with an SBA Express Loan. Other veterans, particularly retired members who have retirement pay coming in, focus on franchise options where they can work “on” but not “in” their businesses. This group prefers to develop strong teams of employees who do the actual work. Franchises that attract these types of veterans include IT services, commercial cleaning, employment and staffing, consulting services, tutoring, and training businesses. Still other veterans feel the need to have full-time employment after separating or retiring from the military because they have children to raise and need job security. These vets gravitate to semi-absentee ownership. They manage the businesses remotely and often engage in fitness, retail, automotive repair, and fast/casual food franchise categories. Every veteran’s needs are different. Financial resources vary. But their desire to be in control of their lives through business ownership are very much the same.

What does the future look like for veterans in franchising?

A

Only about eight percent of the entire adult population of the U.S. has ever served in the military, and that includes those who are on active duty today. With franchise companies wanting new franchisees who have military experience, and only eight percent of our population being veterans, the demand for veterans in franchising will remain strong over the long term. That’s why every veteran should consider franchise ownership. Franchise companies want you for the experience and capabilities you gained from military service. Those same experiences and capabilities will enable you, as a veteran, to be successful as a franchise owner.

QA

Why do so many franchisors recruit veterans? Franchise companies know veterans can work as members of teams. They can execute operational plans and perform as they have been trained to perform. They work diligently until the mission (job) is accomplished. They follow the rules and operate with integrity. These are traits that franchise companies want in all of their owners.

July 2018 55


spot·light

\�spät-�līt \ noun

1. Trending franchise businesses you want to know about 2. A great place to show off your franchise

Snapology® WE GET THE LINT OUT

Deck Medic® Since 1990, Deck Medic has established itself as the number one outdoor wood restoration company in the Chicagoland area. Deck Medic® has its own line of proprietary cleaners, strippers, and 100-percent oil-based stain that can only be purchased by franchise owners. Excellent customer service and the trademark Five-Step Wood Restoration Process sets Deck Medic apart. For more information, visit www.mydeckmedic.com

Looking for a homebased franchise with a low investment and high return? Snapology® provides the tools to operate and manage a thriving business. Based on collaborative principles, Snapology® has a flexible model that allows business to grow while incorporating your goals. Snapology® is a partner for STEAM programs, offering fun, hands-on learning classes in schools, community centers, and homes. For more information, visit www.snapology.com

® 56

Dryer Vent Squad®

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®

Dryer Vent Squad® provides a valuable, inexpensive service to homeowners that saves time, money—and could potentially save homes and lives. Since approximately 80 percent of all U.S. households have a clothes dryer, there is a huge base of potential customers. Dryer vents need to be cleaned and maintained on a regular basis. Dryer Vent Squad® takes away the worry and lets families reclaim time and money. For more information, visit www.dryerventsquad.com


The Waffle Experience® The Patch Boys®

Midtown Chimney Sweeps® The hearth industry is one of the fastest growing franchise opportunities in the United States. By investing in Midtown Chimney Sweeps®, you are not only purchasing a proven business model and marketing system, you are ensuring that you get and keep customers. The hearth industry is currently worth more than $2 billion, with 52 percent of all U.S. households having at least one fireplace. Midtown Chimney Sweeps® is the first chimney sweeping franchise in the U.S. to meet that demand. For more information, please call 844-SWEEP-NOW or visit the website, www.midtownsweeps.com

Named as a must-try in MSN’s 50 Best Things to Eat Before You Die, The Waffle Experience is on the fast lane for franchising success. With a cultlike following, customers are standing in long lines to try TWE’s decadent dishes, which are made from locally sourced natural and organic ingredients and paired with flavor-infused waffles. A favorite, “Praise the Lard” features house-braised pork belly, a cage-free egg, arugula, roasted tomato, ricotta, cracked pepper, agave syrup with a lardon-studded herb waffle. Franchisees enjoy a family-friendly schedule, low investment, and protected territories. For more information, call 916317-6057 or visit

Want to run a homebased business with low overhead and high profit margins? Check out The Patch Boys®. America’s most trusted drywall-repair company, The Patch Boys® takes care of damaged drywall caused by clumsy accidents or water damage. These jobs are usually too small for contractors, and most homeowners don’t have the time or skill to take care of drywall repairs themselves. When you join The Patch Boys® family, you become a part of an entrepreneurial community that works together to advance the brand. For more information, call 844-99-PATCH, or visit www.thepatchboys.com

www.thewaffleexperience.com

®

® July 2018 57


last word

\ last \ \ wərd \ noun

1. Great advice for any new business 2. Soccer with a great goal—improving childrens lives

Shooting for success Why Soccer Shots Scores in Franchisee Satisfaction 1. Passionate leadership: Soccer Shots, an extracurricular program that teaches soccer fundamentals to kids under the age of 8, was founded by two professional soccer players who love the game and know their product. 2. Feel-good business: Franchisees get to make a difference in the lives of children. The company’s goal is to give kids confidence on and off the field, by giving children a positive experience in sports and developing a love for fitness. 2. A great product: Placing a priority on excellent customer satisfaction, Soccer Shots provides parents a weekly summary of their child’s experience. All Soccer Shots coaches are trained in the use of developmentally appropriate techniques. The coaches not only teach the sport, but are trained to engage and inspire children. 4. Flexibility: Soccer shots offers a low-cost, home-based business with a family-friendly schedule. It’s a perfect opportunity for people who love children and soccer. 5. Gives back: The Soccer Shots Foundation provides opportunities to economically challenged children within the U.S. and around the world through the game of soccer. For more information, visit www.soccershots.org 58

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