1851 VOL. 1 2013 | 1851 PROJECT.COM
Y O U N G O N E S T O W AT C H Sean Fitzgerald EVP of Franchise Development Bright Star Care
Rich Stark CEO | Stark Logic
Ashley Betzendahl Social Communications Manager Goddard Systems
Jennifer Durham VP of Franchise Development Checkers & Rally’s
CUNNING
Matt Haller VP of Public Affairs | IFA
CUNNING CURRENT
MODERN YOUTHFUL
T H E S O C I A L 1 0 0 . T H E M U LT I - U N I T M A N . B E S T C I T I E S F O R G R O W T H
Clay Neff Executive Director of Franchise Development Wireless Zone Scott Frith CEO | Lawn Doctor
Eric Little SVP of Franchise Development Right At Home
Scott Sutton VP of Franchise Development Safeguard David Peddie Head of Marketing | Mathnasium
Randy Shacka President | Two Men and a Truck
UNIQUE
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312-526-3986
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for more information, visit us at
or call
WWW.CHECKERSFRANCHISING.COM 888.913.9135
FULLY LOADED FRANCHISE OPPORTUNITIES
Checkers has redefined itself to provide more revenue generating programs than ever before. Take a look inside to see some of the recent updates we’ve made to bring value to our guests and franchisees.
NEW RESTAURANT PROTOTYPE
To further enhance the guest experience, a new prototype location has been developed. The benefits of the prototype restaurant are: • Lower investment costs than previous free-standing locations • Improved drive-thru experience – fast, easy, accurate • Redesigned kitchen provides operational efficiency • Iconic brand features remain – stainless steel band, checkerboard accents, red umbrellas and black, red and white color scheme • Sales to investment ratio 1.8:1
DRIVE REVENUE THROUGH MENU AND DAYPART INNOVATION
Listening to our guests is very important. They provide valuable insight to help us develop new products and drive restaurant visits. • • • •
Chicken Bites Classic Wings in 5 flavors Cold Creations line of treats Late Night daypart provides more opportunities to meet guest demand
ALTERNATIVE BUILDING FORMATS Varied restaurant formats can accommodate any neighborhood and provide compelling returns: • End-cap • Inline • Conversions
®
• After expansion of hours and increased marketing focus, we have seen late night sales double from 2007-2011 at Company owned restaurants
PRODUCT INNOVATION DRIVES REVENUE.
We’re giving guests more reasons to visit, more often.
FACILITY & EQUIPMENT SUPPORT EFFICIENCY.
Upholding high standards of food and service through upgrades in the latest technology.
OPERATIONS & LABOR DELIVER EXCELLENCE.
Our initiatives provide a great guest experience.
NEW RESEARCH FACILITY.
Our new research facility provides the opportunity to understand our guests’ preferences.
THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLTEE AND NOT MISLEADING. This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MN Registration #F-4351
© 2012 Checkers Drive-In, Restaurants, Inc. 4300 W. Cypress St., Ste. 600, Tampa, FL 33607
1851 PROJECT 2013
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THE YEAR AHEAD
YOUNG ONES TO WATCH
THE SOCIAL 100
By Steve Coomes Few people who know Steve Calderia would ever call him a pessimist. But as the president of the International Franchise Association, Calderia finds forecasting the franchising industry’s future for 2013 unsettling.
By Ben Heinemann We present our list of 40 young people who have the drive and determination to make big things happen in the early stages of their careers, making room for even bigger things to come down the road.
By Kate Aoueille Brands no longer talk at us. They talk with us. With that in mind, 1851 presents a comprehensive list of the top 100 franchise brands using Social Media
Image courtesy of The International Franchise Association.
PUBLISHER NICK POWILLS EDITOR IN CHIEF BEN HEINEMANN CREATIVE DIRECTOR NAKWARE HOWARD CONTRIBUTING GRAPHIC DESIGNERS ANNA AFFIAS CAITLIN VANDERKLOK
CONTRIBUTING WRITERS BROOKE WYLIE MATT DIAZ KATE AOUEILLE RALLE KARADJOV LIZA RUSH CHRIS POWILLS GREG AVDOIAN JORDY PATANO CARLY LEVISON PARI MANIKAS RYAN O’DONNELL STEVE COOMES LAUREN KAMINSKI JORDAN BRANDES
MAILING ADDRESS 730 N. Franklin, Suite 310 Chicago, IL 60654 ADVERTISING OPPORTUNITIES nick@1851project.com 312.526.3996
1851 PROJECT.COM | 2013 5
1851 PROJECT 2013
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GIVE TO GAIN
TURNING LIKES INTO LEADS
THRIVING UNDER 100K
By Liza Rush
For many franchisees, low-cost franchises prove highly successful.
By Lauren Kaminski How Toppers built a loyal fan base by listening to its customers.
1851 discusses how franchisors can expand their markets utilizing social media platforms.
By Matt Diaz
Image courtesy of The International Franchise Association
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ATHLETES IN FRANCHISING
THE MULTI-UNIT MAN
THE BEST CITIES TO OPEN A BUSINESS
By Steve Coomes
Advice from Aziz Hashim the multi-unit franchising guru.
For retired pro-sports athletes (and a few current), franchising provides opportunities for success beyond the game.
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1851 MAGAZINE INAUGURAL PRINT EDITION
By Nick Powills
By Jordy Patano 1851’s list of the top cities friendliest to new businesses.
1851 PROJECT 2013 THE BEST CONFERENCES FOR FRANCHISEES AND FRANCHISORS IN 2013 - 2014 Multi-Unit Franchising Conference March 27-29, 2013 Las Vegas
The International Franchise Expo June 20-22, 2013 New York
The IFA Public Affairs Day
This conference provides you oneon-one opportunities with some of the biggest and most powerful franchisees in the world. For franchisors, you are provided the same opportunity.
While it’s still debatable what place franchise expos will hold in development budgets, the International Franchise Expo has proven to be a step in the right direction, connecting franchisors with deals and franchisees with opportunities.
When it comes to finding a purpose and making a difference within the industry you represent, the Association’s Public Affairs Day provides franchisors and franchisees the opportunity to talk about real political issues with those who represent their home markets.
September 15-18, 2013 Washington, D.C.
International Franchise Association Convention February 22-25, 2014 New Orleans When it comes to an information download, no conference produces more content, experience and networking opportunities within the franchise community than the IFA’s Annual Convention.
1851 PROJECT.COM | 2013 7
LETTER FROM THE EDITOR By Nick Powills
LETTER FROM THE PUBLISHER 1851 was never going to be a print magazine.
and rankings of the young ones, the Social Media
broker has rewritten the development landscape.
Perhaps I should learn a thing or two about
studs and veteran friendly businesses. We also
Media has changed, the International Franchise
using the word “never.” As you read this, you
offer great informative Webinars for prospective
Association ( IFA ) has changed. What we
can clearly see that 1851 has evolved from the
franchisees and the lead generation community.
envisioned yesterday as the best way to do things
virtual to the physical world. While I certainly
It has been productive, busy and eye opening.
has not remained the same. Yet our president
wouldn’t say this was on accident, I wouldn’t say it wasn’t on purpose either.
remains the same, as does our uncertainty. Yet, even with those successful moments, what I envisioned last May has not remained the same.
When the publication was created in May of
8
If I could never use “never” or “always,” I would be a better person. I would look at everything,
2012, my team and I saw an opportunity - an
While I may not have been in the franchise
whether it be business or life, with eyes wide
opportunity to provide a daily resource for the
community as long as others, I have used my
open. While a print publication wasn’t in the
franchise community. Most of the resources
time to observe and collect as much data as
cards 10 months ago, the high demand of our
that currently exist focus on a singular audience:
possible before distributing what I presume as
readers to uphold our vision forced us into
franchisor, franchisee, multi-unit franchisee,
best practices. Looking back at my first entrance
unplanned waters. While this issue is printed,
supplier or the prospective zee. 1851 was
into the community, I couldn’t see as clearly as I
it may be the last. I will let the evolution of best
created to provide vision and insight across all
do today. Ten years from now, I will most likely
practices determine what’s next. And, I will be
franchise audiences in a broad, yet informative
say the same thing about my views as I do today.
OK with it.
way, thus connecting the silos and bringing
The reality is “nevers “or “always” don’t work in
together the audiences to tackle both personal
business, franchising or life. Evolution, revolution,
and business growth.
exploration and rewrites are guaranteed.
Ten months later, I am pretty pleased with
Franchise portals don’t work the way they used
what has happened. We have more than 5,000
to and franchise development pros cannot snap
readers, daily content during the business week
their fingers and close deals. The franchise
1851 MAGAZINE INAUGURAL PRINT EDITION
Nick Powills Publisher
WE TEACH FRANCHISORS
HOW TO DRIVE Every franchisor with more than 100 units looks back and wishes they would have done a few things differently. Now there is an executive consulting team that can help you and your company look forward to a successful future based on their in depth knowledge, experience and proven track record of success.
FOR MORE INFORMATION CONTACT US AT 267.767.8130
INFO@SMBFRANCHISING.COM
WWW.SMBFRANCHISING.COM
10 TIPS FOR ACHIEVING SUCCESS IN YOUR FRANCHISE By Kate Aoueille
1.
UNDERSTAND YOUR GOALS AND OBJECTIVES “A business or franchise should be a vehicle that
have to talk to the average franchisees, longtime
disclosure document is and how to use the
franchisees, new franchisees, those doing well
information inside of it,” said Steven Corp, VP
and even those doing not so well,” said John Blair,
of Franchise Sales for Moe’s Southwest Grill.
Director of Marketing for FranNet. “You should
Regardless of the segment you are pursuing,
find out specifically why former franchisees left
the Federal Trade Commission makes every
the system,” Blair said. Understand whether
franchise company release an FDD. Read it and
the reasons were systematic problems with the
read it carefully, over and over again.
franchise or problems specific to the individual. “By investing in your business prior to purchase, you are better prepared to enter into the model,” suggested Blair.
helps you achieve your personal goals. You need
5.
to understand what it is you want the business to do for you,” said Margie Pascetta, coach and franchise expert for The Entrepreneur’s Source. Begin by considering the following questions -Are you looking for a business that matches your lifestyle, or builds long term wealth and equity?
3.
FOLLOW YOUR PASSIONS It is imperative that your franchise aligns with your passions. “Everyone wants to make money,
to supplement your income? Are you looking to
RECOGNIZE YOUR INVESTMENT LEVEL
invest in something that makes you feel good? Be
“Find a business that meets your investment
Checkers Drive-In Restaurants. If you are not
honest with yourself and answer these questions
level,” said Steve Beagleman, President and CEO
truly committed and passionate about your
as truthfully as you can. These answers will
of SMB Franchise Advisors. Many prospects
business, it will ultimately fail.
help you truly understand which franchise
dive into a franchise opportunity before looking
opportunity is the best fit.
at the cost of running it long-term. Do not just
What is truly motivating you? Are you looking
but make sure money isn’t your primary driver,” said Khursheed Amhad, multi-unit owner of
consider the initial investment and finances required in opening a franchise, but also take into account the money you will need to sustain it, like your working capital. Finally, make sure you understand that you are making a long term investment. Therefore, you will not make money
2.
initially.
INVEST IN A LAWYER AND A CPA
COMPLETE YOUR DUE DILIGENCE Prior to signing a franchise agreement, go through an in-depth and thorough validation process. A major component of this process is talking to franchisees. “Do not assume talking to three top-performing franchisees is enough. You
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1851 MAGAZINE INAUGURAL PRINT EDITION
6.
When considering a particular franchise
4. ABSORB THE FDD “Thoroughly understand what a franchise
opportunity, hire a lawyer and an accountant who have experience representing prospective franchisees in transactions. “Their input, guidance, and advice are invaluable and cannot
be duplicated by anyone else,” said Lee Plave,
way after the first term you can exercise your
one of those extreme athletes that jumps off
attorney and partner at Plave Koch. “If you are
options, renegotiate, or leave. Also, try to limit
cliffs with a parachute,” said Eric Bell, Director
looking at a prospective franchise to invest in,
the personnel guarantee to the first term,”
of Sales and Service for Franchise Gator. “He
an attorney who has knowledge of representing
added Trotter.
was asked what it’s like to not have any fear.
franchisees on transactional matters will help
His reply– ‘I have a tremendous amount of fear
you understand the obligations you will be
every time I jump. There’s a challenge in facing
taking on. Additionally, an experienced CPA
it I enjoy. Those who have no fear when base
who understands franchising will be helpful in
jumping are probably not stable. Keep them
evaluating the monetary and financial aspect
8.
away from me.’ Don’t think for a second your
of the business you are considering,” continued
fear is an indication to walk away. Fear is normal.
Plave. Both will open your eyes to the franchise
Work toward understanding it and overcoming
process and the commitment you will undertake.
BE AWARE OF BUSINESSES THAT FOLLOW TRENDS There are many segments in the franchising
it. Eventually, that fear will be a motivator.”
10 .
industry that are quickly rising in popularity. Yet, before you purchase a franchise model, it is essential to “consider the lifespan of the business,” said Terry Corkery, President and CEO of Franchise Works. Ask yourself, “Is it a
7.
trend that will yield success for five years, 10 years? Does it have serious, long-term growth potential?,” said Corkery. There are a lot of risks
CONSIDER THE REAL ESTATE OPPORTUNITY Research is vital in real estate–research not
associated with investing in trends – like yogurt
REGULATE YOUR CASH
or technology. When the trend dies, you are
“When you get into business, you have the
stuck with a franchise that is no
misconception that you can do whatever you
longer profitable.
want,” said Dennis Demshar, multi-unit franchise
only the location, but also the economy and
owner of Honey Baked Ham. In order to make
the terms of the deal. “Now is the best time
sure your cash lasts, adequately plan throughout
to lock into historically low real estate lease
the calendar year. If you own a restaurant,
rates,” said Randy Trotter, President of Horizon
assume you will have spikes in sales during the
Franchising, VP of franchise development for Workout Anytime as well as an area developer for Boneheads. “To protect yourself in an
9.
holidays. If you have a pest business, assume the summer months will provide the majority of your income. “During those spikes in cash, you have a
uncertain economy, sign a lease for a five-year
MANAGE YOUR FEAR
lot of money in your pocket,” said Demshar. “Plan
term with two or three, five-year options. That
“I once heard an interview with a base jumper,
accordingly and do not spend it all at once.”
The following books lay out strategies and tips for being the best business leader you can be while providing insight on how not to run a business
“Steve Jobs” By Walter Isaacson
“Good to Great: Why Some Companies Make the Leap…And Others Don’t” By Jim Collins
“Strengths Finder 2.0” By Tom Rath
“Bitter Brew: The Rise and Fall of Anheuser-Busch and America’s Kings of Beer” By William Knoedelseder
1851 PROJECT.COM | 2013 11
TURNING DREAMS INTO REALITY CREATIVITY IS KEY TO FUNDING YOUR BUSINESS
By Brooke Wylie With the economy still in recovery mode and financing hard to come by, potential franchisees are getting more creative than ever before when it comes to pooling the capital it takes to open their own business. Below, we profile some of the more striking ways several entrepreneurs funded their businesses.
John Heifner
$10,000 to more than $500,000, funded
penalties or initial taxes are incurred.
spent 18 years
more than 4,000 businesses in 2009.
Looking for untraditional ways to finance a
The process for using your 401(k) was
franchise has started to become
working as a nurse, eventually climbing to the
first pioneered by Benetrends, a company
more mainstream.
founded by Len Fischer in 1983. Today,
role of Director of
Benetrends says that nearly 10 percent of
“The tight credit market continues to
Healthcare Systems
all franchise businesses are funded utilizing a
challenge budding entrepreneurs in securing
in the Knoxville, TN
portion of a 401(k). Nicole Russo, Director of
the necessary capital for their business
area. While working as a personal trainer on
Marketing for Benetrends, points out that it’s
the side, John realized he wanted to make
becoming more popular because those
the switch from reactive care to full-time
interested in this form of financing
preventative care while tapping into his desire
don’t have to use all of their
to become an entrepreneur. So in 2011, he
401(k) assets – in fact, about 50
became a franchisee with Workout Anytime, a
percent of Benetrends’ clients
are more likely to support
24-hour gym and fitness franchise. But instead
only use about half of the
due to the proven track
of taking on bank loans to fund his business,
funds in
record of success a
John decided to use his 401(k).
their 401(k).
ventures,” said Jania Bailey, President and COO of FranNet. “Even so, franchising continues to remain one of the business opportunities that lenders
franchisor can show a lender.”
John is not the only one looking to his 401(k)
In order to take advantage of this
to get his business off the ground. According
option, individuals must set up a C
to FranFund, a company that helps franchisees
corporation and establish a corporate
find financing opportunities, since October
retirement account. They can then
2008 the percentage of their clients who used
roll outside retirement accounts into
the ROBS (Rollover for Business Start-Up)
the corporate retirement account and invest
lending experts, matches private investors
program to fund their business has increased
the money in company stock. Since the person
with those needing funding. Often called the
from approximately 65 percent to 93 percent.
is buying shares of their own business, they
eHarmony or Match.com of small business,
ROBS transactions, typically ranging from
are effectively feeding it funds. By doing so, no
BoeFly connects all parties involved in the
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1851 MAGAZINE INAUGURAL PRINT EDITION
Other companies have started realizing the need for financing small business owners face. BoeFly, which was founded by small business
“
Franchising continues to remain one of the business opportunities that lenders are likely to support. -Jania Bailey
”
loan process, including lenders, borrowers,
they had found that opportunity.
franchisors, etc., and helps facilitate the
With the start-up costs being rather
transaction. Essentially, they introduce
substantial, says Maria, the Van Vrusts had to
those looking to invest in a business with
find alternative ways to finance the business.
those looking for funding, building a good
Using the 401(k) rollover plan and an SBA
match based on what each party is looking
loan with the help of Benetrends, as well as
for. According to the company’s website,
teaming up with another pair of investors, the
BoeFly has facilitated nearly 3 billion
Van Vrusts were able to cover the majority of
dollars worth of transactions
the investment required to get their business
to date.
off the ground. They also learned of leasing opportunities for certain equipment, allowing
“Another emerging trend is using securities-
them to provide additional services for
based lending, in which prospective
customers at a lower cost than buying.
business owners leverage portfolios, much
This method allows business owners a more
in the way you use equity loan,” said Dallas
inexpensive option when their businesses
Kerley, Chief Development Officer for
rely heavily on equipment, and also allows
Benetrends. This means that if someone
owners to keep pace with new
has money in an investment portfolio, they
technology trends.
can generally get 70 percent of that value in a loan – and can often get the loan in
It’s important for new business owners to
approximately 10 days with an interest rate
consider all options and do their homework
of about 4-5 percent.
before deciding on what financing methods are right for them. There are several new
After leaving the corporate world, Maria
options entrepreneurs are using to make
Van Vrust and her husband David were
their dreams a reality, and creating a
looking for a new business opportunity.
custom finance plan through new channels
After visiting their local Sky Zone Sports at
is becoming more available – and more
the request of their daughter, they realized
typical – than ever before.
1851 PROJECT.COM | 2013 13
GIVE TO GAIN HOW
BUILT A LOYAL FAN BASE BY LISTENING TO ITS CUSTOMERS
brand to achieve one mission: to serve a high
treats for kids. “We want to put a smile on
quality product in a fun atmosphere, where
someone’s face every time they come
the customer feels like they are involved in
to Toppers.”
the experience. Twenty two years later and 50 locations deep, the Toppers culture has
The desire to constantly keep customers
become ingrained in each location, as the
happy is based on the original founders
franchisees take pride in going above and
of the pizza concept - a group of very
beyond in customer service and keeping
passionate people who are committed to
their fans happy.
being a part of the best pizza company in the world. Paying attention to details in service
“Our goal is to make personal connections
and ensuring that each pizza fanatic has a
with our customers,” said Scott Iversen,
fun experience when they come to Toppers
Director of Marketing for Toppers. “We try
was the goal from the start. Over time, each
to learn each customer’s name, and we pay
franchisee and corporate store continues
attention to what they have ordered in the
to evolve to further serve the needs of each
past, so when they call in, we can base
individual community.
their order off of their history.” To help make the experience a
“We give the drivers a caddy with plates,
By Lauren Kaminski and Kate Aoueille
positive one overall, each
silverware, napkins, crushed red pepper, and
Toppers location keeps
parmesan, and no other company does that,”
the delivery caddies
said Toppers franchise owner Bill Stayduhar,
Toppers Pizza was built on more than just a
filled with green
who has owned his location in Charlotte
thin crust. Founder and CEO Scott Gittrich
army men, small
for 15 years. He also noted that his location
created the eclectic pizza delivery franchise
trinkets and
supplies dog treats for customers who bring
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“We try to make a personal connection with our customers”
FANS PER LOCATION While Social Media is not a
magic bullet, staying true to its fans has paid off for Toppers.
in their dogs, an interesting and unique
Stayduhar. “If we are just a little bit late, we
gesture for a pizza company.
give them a card for a discount for next time,” he added. Another franchisee, Jon Crowe,
The fun and eclectic culture represented at
who opened his location in Lincoln, Nebraska
each Toppers location begins with corporate,
in 2012, boasts on the brand’s accuracy in
“The difference between us and the big guys
delivery and pick-up times. “If we are going
is the way we communicate,” said Iversen.
to take 30 minutes to deliver, we tell them
A large part of Toppers culture is stemmed
40, and our customers really
from their team member statement – to be
appreciate that.”
Toppers Pizza boasts a higher fan per location number than its larger competitors. Even though the brand is the largest in the delivery pizza category, Toppers earns these numbers by employing a unified brand approach to social media by
the best company in the world and “kill it” on every customer experience. The core
Toppers continues to thrive in customer
values that Toppers passes down to every
service by concentrating on the little details
franchisee and employee is to live with
while also providing a quality product
integrity, have fun, build something special,
and service. The brand implements a ‘no
bring it with passion, and give the customer
questions asked’ policy when a customer
what they want. In order to be a part of the
has a complaint.
not allowing franchisees to create and operate their own Facebook pages. This creates one centralized and contentrich page while also maintaining a consistent local message, allowing Toppers to give its fans
Toppers brand, employees must deliver on these core values time and time again.
1,146
The core of the brand is churning out tasty food while truly catering to each customer to
The culture emanates throughout each
make them feel special, put a smile on their
location, with customer satisfaction as the
face and keep them coming back for more.
main focus. “When we have a new customer,
Coupled with awesome food, it makes sense
we give them a card for a free order of
that Toppers customers call
Topperstix for the next time they call in,” said
themselves fans.
the best Social Media brand experience possible.
1851 PROJECT.COM | 2013 15
Hot Off the Press Kilpatrick Townsend’s Franchise Team congratulates our friend and colleague, Nick Powills and his company, No Limit Media, on the launch of 1851 and its first print issue.
A Verizon Premium Wireless Retailer
Like 1851, Kilpatrick Townsend prides itself on being a “go-to” source for the franchise community. Our firm has earned a national reputation for understanding the franchise business, its processes and systems. We apply our extensive knowledge to help our clients manage their businesses better, reduce conflict, avoid unnecessary litigation and preserve important trading relationships. For more information, please visit www.kilpatricktownsend.com Rupert M. Barkoff rbarkoff@kilpatricktownsend.com Christopher P. Bussert cbussert@kilpatricktownsend.com ATLANTA AUGUSTA CHARLOTTE DENVER
FRANCHISE OPPORTUNITIES NOW AVAILABLE
DUBAI NEW YORK RALEIGH SAN DIEGO SAN FRANCISCO SEATTLE SHANGHAI SILICON VALLEY STOCKHOLM TAIPEI TOKYO WALNUT CREEK WASHINGTON D.C. WINSTON-SALEM
www.kilpatricktownsend.com
Go to www.WirelessZone.com or call Clay Neff • 412-491-6782
TURNING ‘LIKES’ INTO LEADS By Liza Rush Last September Facebook hit a milestone, reaching 1 billion active users each month. This means Facebook reaches one out of every seven people on the planet. With the average user spending 20 minutes on the site per visit, this gives business owners and franchisors in particular an ample opportunity to sell their brand and, at the very least, spark interest for future development opportunities. The looming question for franchisors searching to expand their markets utilizing social media platforms is how?
*Statistics compiled from 1851’s Virtual Roundtable webinar series.
The Budget. Reach.
How much money are franchisors budgeting for Social Media?
Facebook reaches one out of every seven people on the planet.
$0-25,000 $25-50,000 $50,000+
Opportunity. Twitter finds that 56 percent of customer tweets to companies are being ignored, leaving a huge opportunity to increase customer satisfaction.
Growth. It’s no secret that the Internet has become
create buzz with Twitter, engage through
the primary form of communication for the
insight with Facebook and develop and
majority of the Millennial generation. The
foster relationships through LinkedIn.
outlet is utilized for finding roommates, housing, and even dating, with each having
“It’s more of a laser approach as opposed
a specific platform. By applying the correct
to a flashlight,” Downs said. By infusing PR
approach within each channel, a brand can
through Social Media, a story’s exposure
experience success with development leads.
can grow while also gaining a longer shelf
Instagram, the newest social media giant, has shown and increas of 724% of average daily mobile visitors in only six month’s.
life. This also brings another aspect to the Kevin Downs, Director of Marketing for
table—people. People are more likely to
Wireless Zone, has started 2013 with a
respond and identify with individuals like
fresh outlook. Evolving the brand’s social
themselves. So speak like a human, not a
media presence from validation to lead
press release and create a cohesive voice
generation, Downs’ plan of attack will
across all platforms.
1851 PROJECT.COM | 2013 17
By Brian Diggelmann One of the most influential factors in an
Tony Padulo, VP of Franchise Development
“I’m not sure that means I’m going to have to
entrepreneur’s decision of which franchise to
at Goddard Systems, Inc., says if a franchisor
go out and do my homework,” he says. “My
buy is undoubtedly the franchise disclosure
doesn’t present an item 19, it should be one of
preference is that our clients require their
document (FDD). Historically known as a
the first questions a prospect asks.
franchisees to take the data and come up with
23-item long stack of paper, the FDD serves
their own answers. It doesn’t always happen that
as the bible for the franchise it represents,
“It’s not a write off, but if I were a candidate it
containing much of the relevant information
would certainly raise a red flag,” Padulo says.
someone interesting in buying that franchise
“Some cases may be justified—for example, it
Most importantly, any and all information
would want to know.
may be an emerging franchisor without the
presented in an item 19 must be verifiably
history to do it. You need to understand why.”
true and cannot mislead candidates. So while
But the writers of FDDs face an inherent
way, but it’s certainly better when they do.”
franchisors need not include every detail,
problem—they
Of course, if a brand has
what does end up in the item 19 must paint an
must create a
nothing to hide, including
accurate picture of their business.
legal document
the information is usually
that can be
a solid choice. Toppers
In the end, every FDD will be different and the
understood by
Pizza Director of Franchise
inclusion and specifics of an item 19 will depend
a layperson.
Development Mark Cairns
entirely on the individual franchise. The best
Nowhere is this
said his company includes
practice is to work with an experienced franchise
more important
a detailed item 19 because
attorney who can help make your FDD sell
that in item 19 of
the information paints the
your concept.
an FDD, where
brand in a good light.
a franchisor may choose to include a financial performance representation.
“The numbers are very positive and the stores represented make a lot of money,” Cairns said.
Many franchise prospects mistakenly believe
“From a legal standpoint, it’s very helpful that
the item 19 will tell them how much they can
people can really dive down into the numbers
expect to make as a franchisee, but that’s not
and understand it.”
the case. In reality, item 19s are limited to the hard numbers that show how existing units
Finding the right amount of information to
performed. The entire section is optional, and
share is the next hurdle. Franchise attorney Lee
deciding whether or not to include it is the
Plave suggests franchisors do not include their
first challenge in turning an item 19 into a
complete balance sheets and every
marketing tool.
figure imaginable.
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1851 MAGAZINE INAUGURAL PRINT EDITION
KEY QUESTIONS According to the U.S. Small Business Administration, three key questions to ask while diving into an FDD include:
1 2 3
Do you know how much money you can invest?
What are your abilities?
What are your goals?
i believe that ‘young’ means seemingly endless possibilities.
stand out,
speak up
& be kind. alexis gillette
director of marketing, mooyah burgers, fries & shakes
young ones to watch.
THRIVING UNDER 100K FOR MANY ‘ZEES, LOWCOST FRANCHISES PROVE HIGHLY SUCCESSFUL
Wireless Zone is the largest independent
extremely community oriented and we embrace
Verizon Wireless franchise in America. With
that. The more community outreach we do in
a foundation set on customer service and
these communities, the more successful we are.”
community outreach, it is no wonder this franchise has been able to reach over 460 units
By Matt Diaz
since its founding in 1988. “I saw a business that I didn’t feel was going
With today’s economic climate, it’s easy to be drawn to low-cost options to help make ends meet. In the world of franchising, however, this notion has its ups and downs. Just because an opportunity is low-cost doesn’t mean its the right choice, nor does it mean you will fail. There are a number of factors that play into owning a successful franchise, and these three franchisees know just what it takes to be successful with less than $100 thousand.
anywhere but up,” said Nate Bastarache, franchisee for Wireless Zone. “I saw stability and growth of the Wireless Zone concept and knew that it was right for me. Additionally, a lower cost option allowed me to build a foundation for success more quickly” The potential for growth was one of the primary reasons Nate got involved with Wireless Zone
BARBARA BLISS-MODDER
and one of the key factors that led to his success. After 15 years in the automotive industry working primarily as a general manager, Nate opened his first Wireless Zone location in Easthampton, Massachusetts in 2009. Currently,
BRAND: SHOWHOMES
he is working on his fifth store with hopes to
TOTAL INVESTMENT: $43,300-$82,000
open more in the future. One issue with a low-cost option is growing too
Barbra Bliss-Modder is as passionate a
big too fast. “If you have a number of locations
franchisee as you will find in any system. For
but just one is underperforming, it can bring your
seven years, she has been a franchisee for
entire operation down,” Bastarache said. A good
Showhomes, a premiere home staging franchise
way to curb this issue is to carefully plan out
that transforms vacant houses into life-filled,
developments with respect to time and location.
inviting homes that appeal to buyers.
“As Americans, we often forget that our eyes can
NATE BASTARACHE
be larger than our stomachs, a personal affliction
“For most people, becoming a franchisee
of mine.”
means taking a leap and investing your life into something new,” said Bliss-Modder.
Another way Wireless Zone helps procure
“Being passionate about your concept and
development is through community outreach.
investing more than just time and money is what makes a franchisee successful.”
BRAND: WIRELESS ZONE TOTAL INVESTMENT: $80,250-$268,500
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1851 MAGAZINE INAUGURAL PRINT EDITION
“The wireless industry is extremely saturated with everyone having a phone these days,”
Franchisee of the year for Showhomes in
said Bastarache. “The Wireless Zone model is
2010, Bliss-Modder knows what she’s talking
MORE BRANDS UNDER 100K
about. “I was a realtor for six years before
purchasing his first location in Miami, Florida.
purchasing my territory. I love homes and I
“What really separates us from the
love to help people visualize, so this was a
competition is our passion and having fun,”
perfect business for me.”
said Patrick. “If our customers don’t have a good time and leave feeling good, we haven’t done our job.” Eric has recently opened his second location in Fort Lauderdale, Florida.
Engineering for Kids Total initial investment: $39,500-$44,500 HandyPro Total initial investment: $68.530-$107,333
BARBARA BLISS-MODDER
Smart Tax Total initial investment: $36,650-$93,600
ERIC PATRICK Fetch! Pet Care Total initial investment: $25,900-$39,500 Proforma Total initial investment: $4,730-$44,700
BRAND: PAINTING WITH A TWIST TOTAL INVESTMENT: $98,000
For most people, becoming a franchisee means taking a leap and investing your life into something new.
TGA Premier Junior Golf Total initial investment: $16,000-$62,200 Stratus Building Solutions
“When choosing a low cost franchise you have to
Total initial investment: $3,450-$57,750
be aware of the barriers to entry and how easy it might be for others to duplicate your product,”
CruiseOne
said Eric Patrick, a franchisee of Painting with a
Total initial investment: $4,630-$26,270
Twist. “This can lead to crowding in a market so it’s important to make sure you believe in your
“A low cost option allows someone without
Anago Cleaning Systems
concept, truly enjoy what you’re doing and focus
significant assets or a major loan from a bank
Total initial investment: $8,540-$65,410
on what separates you from your competition.”
to obtain their dream of business ownership in
Caring Transitions
For Patrick, being in this business is all about
“With the state of the economy right now it’s
Total initial investment: $45,480-$73,680
giving a great experience to his customers. A
difficult for people to find funding, so these
self-taught painter, Patrick originally worked as a
opportunities are very important for building
corporate artist for Painting with a Twist before
up local communities.”
a relatively short period of time,” said Patrick.
Bevintel LLC Total initial investment: $36,900-$50,600
1851 PROJECT.COM | 2013 21
TOP GROWTH SECTORS IN FRANCHISING By Jordy Patano Every year there are industries and trends that emerge as the leading franchise concepts, representing the ‘hottest’ and fastest growing new business sectors. Whether it be driven by people looking to make a difference, economic trends or shifting population demographics, people are quick to leap at the fresh opportunities. We compiled a list of six of the fastest growing sectors of the franchise industry and companies in each of the categories that are particularly strong brands to watch.
into this category to teach more specialized
the space, offering grass-fed beef and organic,
education and help children keep a competitive
locally grown toppings.
edge. Concepts in math, science, music and
5.
engineering, like Mathnasium, Kumon Math & Reading Centers, School of Rock, Engineering for
Ice Cream + Frozen Treats
Kids and The Mad Science Group, help kids see
We have all heard about the froyo craze over
the fun in specialized fields.
the past few years, and this industry isn’t
3.
going anywhere. The sector will continue
Fitness
booming through next year, even though it seems to be saturated in most areas. Leaders
It’s no surprise fitness concepts make the list
will set themselves apart by being innovative
in 2013. Over the past few years, this booming
and adding new menu items that will drive
industry sector has been legs ahead by providing
traffic throughout the entire year. Industry
low-cost services available around the clock.
giants like Red Mango, Menchie’s and Yogli
With many people cutting budgets for this once
Mogli will continue to grow, but new emerging
luxury concept, people are finding convenience
rock stars of the sector like Yogurtini, Forever
with these gyms in their hectic schedule. Some
Yogurt and FrozenPeaks are catching up very
industry giants and up-and-comers in the
quickly. Outside the frozen yogurt industry,
industry include Anytime Fitness, Snap Fitness,
companies like Culver’s, Ritter’s Frozen
As after school programs for children often get
Crunch Fitness, Workout Anytime, KoKo
Custard, Kona Ice and MaggieMoo’s will thrive
cut because of budgets, franchises have stepped
FitClub and Fitness Revolution. There are even
in this diverse sector.
in to create programs designed to give children a
online groups like iLoveKickboxing.com, more
fun, less competitive answer to the sport leagues
specialized fitness facilities like Jazzercise Inc.
of the past. With people looking to pursue their
and focus fitness like Live 2 B Healthy
passions while helping inspire children to live
Senior Fitness.
1.
Children’s Fitness
healthy and active lives, there is a clear reason these franchises are growing so quickly. Some of the top emerging franchises in this sector
4.
6.
Senior Care
With the large population of baby boomers, the 65-year-old and over sector of the United
Hamburgers
States is growing faster than ever before. Beyond the U.S., the global aging population
include i9 Sports, Soccer Shots, NZone America,
Who doesn’t like a good hamburger when the
is reaching unprecedented levels, demanding
Sky Zone Indoor Trampoline Park, My Gym
toppings are completely your choice? Clearly
this industry grow at an increasing rate just
Children’s Fitness Center and TGA Premier
everyone in America agrees that customization
to keep up. In-home services have been the
Junior Golf and Tennis.
is king in this booming sector. The simplicity of
clear leader of the pack, assisting those who
these concepts is most interesting, with the most
can’t get around as easily as they once could,
successful brands specializing in burgers, then
or those looking for companionship or even
adding on a few additional items to not distract
medical assistance. The variety of services
With declining rankings in the United States,
from the main menu item and the variety of
and opportunities for senior care franchises
especially for math and science scores in our
toppings. Some of the major players in this
will only grow exponentially. Some of the
schools, educators emerged from their careers
QSR segment, as well as fresh up-and-comers,
leaders both nationally and internationally
and turned into entrepreneurs to help solve
are Five Guys, Burger 21, Elevation Burger,
are Qualicare, Right at Home, Home Instead,
the disjuncture. Franchisees with a passion for
MOOYAH, Smashburgers and BurgerFi. Organic
Always Best Care, Bright Star and Seniors
education and industry have quickly jumped
burger chains have also begun moving into
Helping Seniors.
2.
22
Children’s Enrichment Services
1851 MAGAZINE INAUGURAL PRINT EDITION
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Stark & Stark’s Franchise group is dedicated to
helping
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We blend our
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Imagery courtesy of The International Franchise Association
STEVE CALDEIRA By Steve Coomes
WASHINGTON’S GRIDLOCK & SOARING DEBT COULD SLOW PROGRESS IN 2013 Few who know Steve Calderia would ever call him a pessimist. But as the president of the International Franchise Association, Calderia finds forecasting the franchising industry’s future for 2013 unsettling.
Bipartisan gridlock in Washington, soaring national debt and looming health care costs have Calderia—typically an industry cheerleader—concerned about the effects of a stalled government on business growth and profitability. Asked to elaborate on several topics affecting franchising, Calderia shared his thoughts with 1851.
D A E H A R THE YEA OK
2013 OUTLO
STEPHEN J. CALDEIRA
President and CEO of the International Franchise
With the election behind us, what effect will a
lawmakers in the new Congress can consider
second term for President Obama have on the
a comprehensive overhaul of the tax system.
franchising industry?
The partisan rancor, negative rhetoric and perpetual gridlock must come to an end so that
We congratulate President Obama and the
we can begin to heal this country and get it
new members of the 113th Congress and
moving again.
Association, the world’s
respectfully urge them to create bipartisan
oldest and largest
solutions to address long-term fundamental
When you speak with franchisors and
organization representing
fiscal reform, including comprehensive tax
franchisees, how are they preparing for the
reform, reforming entitlement programs and
formal institution of the PACA in 2014?
the franchising industry.
reducing the unsustainable debt. However,
Caldeira works with the IFA
raising taxes on small businesses, including
Franchisees and franchisors alike are simply
board to set the direction for
franchisees, which create 65 percent of all net
running the numbers on their business at this
the organization’s strategic
new jobs, is clearly the wrong approach.
point to determine if they are subject to the
priorities: government relations and public policy,
employer mandate. Many franchisees are Franchise businesses are in every state and
right around that 50 FTE-equivalent employee
congressional district and they stand ready to
threshold, so they need to determine if their
including the association’s
accelerate job creation. While this was a status
numbers of full and part-time employees
political action committee,
quo election, the current status quo for small
qualify them as a “large employer” under the
media relations, public
business is unacceptable.
law. The lack of regulatory guidance on several
relations and professional development programs and research initiatives.
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1851 MAGAZINE INAUGURAL PRINT EDITION
key Affordable Care Act provisions that are With the elections concluded, the current
still being promulgated is preventing them
Congress should act immediately to pass a
from preparing as thoroughly as they’d like, but
short-term deal that would avert the fiscal
these small business owners will have to make
cliff by extending all current tax rates until
tough decisions about how to comply with the
FRANCHISING BY THE NUMBERS ·
Number of franchise establishments in the U.S. will increase by 1.4 percent in 2013
·
Franchise industry projected to create 162,000 new jobs in 2013
·
GDP of franchise sector projected to increase 4.1 percent in 2013
·
Output of franchise establishments in nominal dollars will increase 4.3 percent in 2013 for an increase of $33 billion
law while still growing their businesses.
risk to having a healthier and sustainable
franchising, including 4,314 who have become
We also continue to educate our members
recovery. While franchising continues to
veteran franchise business owners, since 2011
on a very consistent basis through all of our
perform well, long-term growth and business
through Operation Enduring Opportunity,
communications channels (including health
planning is still weaker than it could be.
a campaign of the International Franchise
care-related webinars) on what we know and
Association’s VetFran Strategic Initiative.
what they may need to be thinking about as we
Immigration reform will most likely be on the
As we continue to work hard each and
continue to move forward and learn more.
federal legislative agenda a well, so we’ll be
every day to extend career opportunities
heavily engaged in that critical issue area for
to our nation’s veterans, we are gratified to
industry as well.
recognize the great progress that has been
What is the biggest challenge the franchise industry as a whole faces in 2013? Unintended consequences of city, state and
made by employers across all segments of the What’s the biggest benefit to the franchise
franchising industry. As we celebrated Veterans
industry in 2013?
Day this year, we continue to recognize that
federal issues/regulations around health care,
we must keep up the momentum to enable our
workforce policy and banking (at the federal
With more than 1 million veterans transitioning
nation’s veterans to fulfill their dreams and find
level which affects small business lending),
out of military service by 2015, veterans
meaningful career opportunities here at home.
and which have proliferated in recent years,
returning from Iraq and Afghanistan could
present a huge threat to the industry. So any
be a huge benefit to the franchise industry in
In what industry will franchising see the
new legislation or increased regulations that
2013, both as highly-qualified employees and
largest growth spurt in 2013 and why?
stifle growth, as oppose to enable it, poses a
franchisees entering the industry.
significant risk to achieving and sustaining the economic recovery this country urgently needs.
Recovery of the housing market will help IFA answered First Lady Michelle Obama’s
many sectors of our industry, including real
call to assist in the transition effort through
estate and residential services tick upward.
Additionally, at the federal level, the lingering
the White House Joining Forces initiative. In
Additionally, as 10,000 baby boomers hit the
uncertainty surrounding the direction of federal
2012, 64,000-plus veterans, military spouses
age of 65 each day, the in-home healthcare
tax and spending policy also poses a significant
and wounded warriors have started careers in
sector will continue to grow as well.
1851 PROJECT.COM | 2013 27
YOUNG
ONES TO
WATCH By Ben Heinemann
Young people are making noise – and are on the horizon of big things within their respective businesses. If you asked Geoff Hill, Vice President of Roark Capital Group, he would suggest the formula for young executives maturing into established leaders is simple: Results + knowledge + relationships. “If someone asked me for advice on how they can become more successful in business, I would ask them how they were doing in each of those categories,” he says.
Keeping that winning recipe in mind, 1851’s list of 40 young people have the drive and determination to make big things happen in the early stages of their careers, making room for even bigger things to come down the road.
VOTE FOR THE TOP YOUNG ONES AT: FACEBOOK.COM/1851MAGAZINE
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1851 MAGAZINE INAUGURAL PRINT EDITION
FRANCHISING
YOUTH
MOVEMENT
1851 PROJECT.COM | 2013 29
YOUNG ones to WATCH
27
34
32
32
35
28
ASHLEY BETZENDAHL
RANDY SHACKA
MATT HALLER
LIBERTY HARPER
ADAM POVLITZ
GODDARD SYSTEMS, INC. AGE: 27
TWO MEN AND A TRUCK AGE: 34
IFA AGE: 32
FATBURGER AGE: 32
ANAGO AGE: 28
If you asked Ashley Betzendahl in college what she would be when she grew up – Social Web Communications Manager probably wouldn’t have been the four words of her choice. Thankfully for Goddard Systems, Inc., that career path is perfectly fitting for the 27- year- old. In fact, the social guru has paved the way for other brands in the sense of best practices. Take a look at her work and you will receive a glimpse into social perfection. As for her next step? Much like Social Media, Betzendahl’s world changes every second. She does love franchising, though, and sees herself painting a nice footprint in the future.
Randy was 21, having just completed a semester internship at Disney World, when he got a call from the director of marketing for Two Men And A Truck regarding an internship opportunity in the company’s marketing department. Now as the President of Two Men, you might say the internship opportunity has paid off for Randy, who at the stillyoung age of 34 continues to inject the company with his energy and spirit. “There is no pattern for what business looks like in the future and this chaotic environment in itself lends to more opportunities for the younger generation that are ready to take them on,” he says.
As Vice President, Public Affairs and Chief of Staff to the President & CEO for the International Franchise Association, this 32-year-old rising superstar has a future path planned and a great mentor to follow in IFA’s President Steve Caldeira. Haller’s eyes have been on the ball ever since graduating from North Carolina State University, where he was director of industry relations at the Pharmaceutical Care Management Association and manager of political affairs at the U.S. Chamber of Commerce. Oh, and don’t forget legislative assistant for UPS Corporate Public Affairs and a director of public affairs at Levick Strategic Communications, LLC.
Liberty has done it all. She has been a franchisee, a franchisor, a consultant, an Internet TV show host and a development member for a marketing brand. Now guess her age - Harper is 32 years old, but has built a portfolio that would make some of the franchise community’s influencers jealous. Despite accomplishing so much so fast, she refuses to sit still. The entrepreneur in her still craves making a difference in people’s lives by relying on a blend of experience that encompasses success and failure.
When Adam decided he wanted to be in a more impactful position, he left a successful job at IBM and jumped into the world of franchising with Anago. As Anago’s Executive Vice President, the 28-yearold certainly makes an impact. And while he says young people can be wellrepresented in business, it’s important for them to work hard for it. “Put in the hours, work hard, work smart, and no matter what age you are, you’ll be recognized,” he says.
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1851 MAGAZINE INAUGURAL PRINT EDITION
YOUNG ones to WATCH
28 28
25
30
31
27
MANDY & AHMAD
ALEXIS GILLETTE
STEVEN & JASON PARKER
GEORGIA PAULDING
DAVID PEDDIE
FOREVER YOGURT AGE: 35 & 28
MOOYAH AGE: 28
K-9 RESORTS AGE: 25 & 27
SYLVAN AGE: 31
MATHNASIUM AGE: 30
Over the last two years, self-serve yogurt franchisees have been all the rage – Mandy and Ahmad noticed the trend exploding in Scottsdale, AZ, where the two ran a vacation-rental company. The two young entrepreneurs decided to bring the froyo craze to Chicago, where Forever Yogurt has taken root as the most successful froyo business in the Midwest. New additions to the concept like a Froth Bar (hot chocolate) have earned award winning results, netting sweet success for not only Mandy and Ahmad but their franchisees.
Alexis credits a clever writing sample, an artfully crafted resume and her sense of humor (not to mention some serious style when it comes to her shoes) for launching her career at such a young age. As a selfproclaimed food lover, her job as Director of Marketing at MOOYAH is the perfect fit. And even though she admits that “young means less years on earth,” she prefers to believe that “young means seemingly endless possibilities. Stand out, speak up and be kind.”
Ray Kroc. Harland Sanders. Fred Deluca. Jimmy John Liautaud. Jason and Steven Parker. That’s the dream for these two young franchisors. They don’t sell hot dogs (they take care of dogs in a luxurious resort) or another American staple food product – but, when it comes to dogs and animal day care, they hope someday they can be mentioned in the same sentence as the famous founders who preceded them. How will they get there? By listening a lot, taking a few aggressive leaps, and banking on the fact that no one can take care of furry family members better than they can.
Georgia Paulding has always had a passion for working with kids. Ultimately, her current position within Sylvan’s Franchise Development team offered her a way to make a difference and help today’s youth. “If a senior executive takes a chance on mentoring a young professional, it is my belief that the company will ultimately benefit from another generation of networking, fresh ideas and enthusiasm,” she says of young people in the corporate world. “Those young professionals then have a responsibility to step up and become a leader themselves within the company.”
When David Peddie became the Center Director of a Mathnasium in 2006, it’s doubtful he could have known that just six years later he’d be a key member of the supplemental education franchise’s corporate team. In 2007 he opened his own center and grew it to be among the top 10 percent of franchises within the entire Mathnasium system. David’s passion and gift for marketing caught the eye of the corporate team and he was promoted to Western Regional Manager in 2011 and Head of Marketing a year later. Today, Mathnasium opens about one center as week and has seen a jump in center sales under David’s leadership.
1851 PROJECT.COM | 2013 31
CHRIS VOLK PITA PIT AGE: 29
he found out that Pita Pit offered a discount on franchise fees for qualified veterans. As a military veteran, Volk placed a high value on discipline,
Chris is a Hazen, North Dakota native and Army
precision and following a set plan, which he
veteran. At the age of 21, he decided to enlist in
has been able to transfer into success with
the United States Army and was stationed at Fort
Pita Pit. Volk is currently a multi-unit franchise
Drum in New York, near the first Pita Pit location
spearheading the growth of Pita Pit throughout
in Kingston, Ontario. After extensive research
North Dakota.
BRITTANY & ANTHONY RODGERS HAND & STONE AGE: 29 & 32
franchisees identify the right opportunity with them. Equipped with a financial plan, passion and vision, the young husband/wife team landed upon an emerging New Jersey-based
Brittany and Tony Rodgers always knew they
franchisor, Hand & Stone Massage and Facial
wanted to own their own business–they just
Spa. Much like other first time franchisees, the
didn’t know what. They turned to FranNet,
duo plans to work their way into multi-unit
a franchise broker that helps prospective
franchise ownership.
CADE HOWARD THE GROUNDS GUYS AGE: 22
becoming a franchise owner. Howard is all for bucking trends and plans to continue growing his franchise business in his community.
Cade Howard doesn’t believe in stereotypes. If he did, he wouldn’t be an emerging franchisee of The Dwyer Group’s lawn care concept, The Grounds Guys. Why? For one, he is 22, and two, he already owned another lawn care business before
KAT COLE CINNABON AGE: 33 Kat Cole turned a spending-money gig at Hooters into a skyrocketing career in franchising. She landed a job at Hooters corporate before she was old enough to rent a car, and by her late twenties was being offered positions with VP in the title.
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1851 MAGAZINE INAUGURAL PRINT EDITION
Today, Cole is a part of the booming Focus Brands, serving as President of Cinnabon, Inc.
JON-ANTHONY LUI TUTOR DOCTOR AGE: 27
father – a franchise sales veteran who taught Lui more than just the basics. In college, the depth of understanding wowed his classmates. Today, it
If Jon-Anthony Lui believed everything he read, he
wows his colleagues. And this is just the beginning
probably wouldn’t be successful as a franchise in
for the 27-year-old, who says “I don’t just want to
the Tutor Doctor system. When Lui was in college,
be successful, I want to be significant.”
his text book gave him a two-lined paragraph definition on franchising. Thankfully, he had his
THE PITA PIT TEAM
alternative to fast food. This has all meant
PETER RIGGS, BEN DRAKE, & COREY BOWMAN AGE: 33, 33, & 35
Corey as they continue to grow the brand both
success at a young age for Peter, Nelson and
in the U.S. and Canada.
Guess what? This youthful brand is run by some pretty youthful and very successful executives. If you lived on (or visited) a D1 college campus, chances are you have experienced the healthy
JEREMY LEE HUDDLE HOUSE AGE: 34
significant influence on franchisees and their local store marketing. The local store marketing guru has since helped hundreds of franchisees strengthen
When Jeremy started his franchising career,
their local communications through events and
he certainly wasn’t planning on staying in it
promotions. Lee’s helping hand has also given him
forever – especially since he has always had the
real life experience, which will, someday, provide
entrepreneurial bug to open his own restaurant.
beneficial for him opening his own restaurant – or
But things changed as he realized he could have
perhaps starting his own franchise brand.
JOHN HELM
When John told a boss of his he wanted to own
Jersey Mikes Subs Age: 33 You could say it was fate that John ended up owning five Jersey Mike’s locations in New Jersey – he attended the same high school as the Founder and CEO, Peter Cancro, who founded the sandwich franchise when he was only 17.
his own business, his boss not only offered to be a silent partner, but confessed to John that he had always wanted to own a Jersey Mike’s as well. And so, at 25, John opened his first location in Brick, New Jersey, and continues to expand along the Jersey Shore slinging some of the best sandwiches around.
ALICIA SORBER TWO MEN AND A TRUCK AGE: 26
the corporate office in Lansing, Michigan, Alicia became the first employee of the brand’s Chicago location. Now, after even more hard work and a
Growing up, Alicia was intrigued by the growth of
move across the country, Alicia is the owner of the
her family business, which just so happened to be
San Diego location and loves every minute of it.
the iconic Two Men And A Truck. But there were
And no, she doesn’t miss the snow.
no hand-me-downs for Alicia. After putting in the hard work as an intern and eventually working at
DARYL SMITH JR. FANTASTIC SAMS Age: 30 After graduating from the University of Maryland – Eastern Shore, Daryl leaped into the corporate world, working as a project manager for Verizon
the move to franchising, working as a marketing director for Chick-fil-A while also deciding to pursue his dream of business ownership. With a passion for the hair industry, Daryl opened his very own Fantastic Sams in Dover, adding to his already impressive resume all before the age of 30. Now that’s what we call fantastic.
Telecommunications for six years. He then made
JOSH COHEN JUNKLUGGERS Age: 30 Josh got the idea for making extra money hauling junk away while huddled around a campfire in Australia where he was studying abroad. Upon
eventually growing the company to the current multi-state and very successful operation it is today. “I started with my Mom’s SUV and $3,000 of Bar-Mitzvah money, so I wasn’t well funded. It takes passion and perseverance to succeed more than anything,” he says.
his return to the states and at the age of 21, he launched the business using his mom’s SUV,
JOSH SKOLNICK MONSTER TREE SERVICE
1851 MAGAZINE INAUGURAL PRINT EDITION
they can do it, so can I.” And so, Josh founded
AGE: 28
Monster Tree Service, growing the company to
Josh is a career landscaper who started a multi-
a profitable multimillion dollar business in four
crew lawn care service while in high school. His
years. As Josh puts it, “I’ve built a substantial
clients often asked him to address their tree
business without ever removing a tree myself.”
problems, but having no experience himself, he
Who says money doesn’t grow on trees?
subcontracted the work. Noticing the money
34
tree landscapers were making, Josh thought “If
BEAU GREEN RIGHT AT HOME AGE: 30
grandmother and his mother-in-law and realized he and his wife wanted to find a way to provide a better service at home. The former University of
When it comes to senior home care, rarely do
Louisville walk-on basketball player went on to
you find the youth interested in the business.
have a solid college career as a guard at Samford.
That is unless you are Beau Green, 30-year-old
The discipline learned as a college athlete has
franchisee of Right at Home in Birmingham, AL.
guided Green through following the franchise
Green watched how his mother cared for his
game plan at Right at Home.
MINDY GOLDE
has helped Systino grow into a well-respected
LISTEN 360
platform, and then while on top of the community,
AGE: 33
through a name change to Listen360. That’s called
If the franchise community were a movie, Mindy
fearlessness. President Golde? Maybe someday.
may call it “Old School” – and probably wouldn’t
In the meantime, she is focused on the client and
watch it. That “Old School” mentality does not
passionately making a difference for them. She
work for Golde—in fact, she completely ignores
is creating the next stage of service standards –
being told she has to wait her turn. The go-getter
qualities sure to be embraced by the followers.
TODD BINGHAM
young people like himself have a tremendous
FRANNET AGE: 35
opportunity to make it in business despite the current economic climate.
Todd started his career in the tech field right out of college, working at a hospital in London, KY. Now, as Vice President of FranNet, Todd “loves being a part of an organization that helps people realize their dreams,” and believes that
DOUG SCHNEIDER
soccer with Soccer Shots founders Jason Webb
SOCCER SHOTS Age: 35
around, Doug became one of the first franchises
Doug has always had a passion for soccer, playing the sport almost his entire life and even playing in the the Olympic Development program and traveling to Scotland to train with a first division professional team. Doug also played college
and Jeremy Sorzano, and after kicking the idea
in the Soccer Shots system. Now, at the ripe age of 36, Doug, along with his brother Kevin, have capitalized on their passion for soccer, filling their days doing what they love best.
1851
L A I C O S
100
By Kate Aoueille
er’s lue to the consum va ds ad it n he w successful ers monthly active us with us. A brand is n lk io ta ill m ey 1 Th . 90 h us it at W talk eate interaction. Brands no longer l, content-driven e opportunity to cr fu th g ng in ni iz ea se m e ng ar l ti ds book on traditiona experience by crea unts, certain bran e th co ac ng r ti te ri it -w Tw re n le io 465 mill audience whi media. on Facebook and whelmingly large er ov is th are owning social h it at w th s ds on ti an ec br 0 nn co 10 the Top meaningful are 1851’s picks of g in w llo fo e Th g. advertisin
* Numbers are current as of 1.14.13
Rank
Franchise
1.
38
# of Facebook Followers
# of Twitter Followers
315,263 9,559,360
Facebook + Twitter Link
FB: http://www.facebook.com/tacobell TWITTER: https://twitter.com/#!/TacoBell
2.
5,397,759
47,764
FB: http://www.facebook.com/dairyqueen TWITTER: https://twitter.com/#!/Dairyqueen
3.
1,637,929
132,890
FB: http://www.facebook.com/jimmyjohns TWITTER: https://twitter.com/#!/jimmyjohns
4.
7,863,947
156,864
FB: http://www.facebook.com/Dominos TWITTER: https://twitter.com/dominos/
5.
26,795,226
900,280
FB: http://www.facebook.com/McDonalds TWITTER: https://twitter.com/#!/McDonalds
1851 MAGAZINE INAUGURAL PRINT EDITION
* Numbers are current as of 1.14.13
# of Facebook Followers
# of Twitter Followers
6.
19,634,665
918,871
7.
9,912,458
152,727
FB: http://www.facebook.com/PizzaHut TWITTER: https://twitter.com/#!/pizzahut
8.
8,319,533
194,330
FB: http://www.facebook.com/DunkinDonuts TWITTER: https://twitter.com/#!/DunkinDonuts
9.
4,561,970
82,610
FB: http://www.facebook.com/benjerry TWITTER: https://twitter.com/benandjerrys/
10.
3,733,783
68,909
FB: http://www.facebook.com/applebees TWITTER: https://twitter.com/applebees
Rank
Franchise
Facebook + Twitter Link
FB: http://www.facebook.com/subway TWITTER: https://twitter.com/#!/SUBWAY
1851 PROJECT.COM | 2013 39
* Numbers are current as of 1.14.13
Franchise
Rank
40
# of Facebook Followers/ Likes
# of Twitter Followers
Facebook + Link Link
11
Buffalo Wild Wings
9,883,441
224,346
FB: http://www.facebook.com/BuffaloWildWings TWITTER: https://twitter.com/BWWings
12
Outback Steakhouse
2,318,032
32,206
FB: http://www.facebook.com/outback TWITTER: https://twitter.com/Outback/
13
Arby’s
1,973,991
86,702
FB: http://www.facebook.com/arbys TWITTER: https://twitter.com/Arbys
14
Carl Jr’s
1,163,147
30,812
FB: http://www.facebook.com/carlsjr TWITTER: https://twitter.com/#!/CarlsJr
15
Baskin Robbins
5,586,435
36,237
FB: http://www.facebook.com/baskinrobbins TWITTER: https://twitter.com/#!/BaskinRobbins
16
Chick-fil-A
6,586,704
207,863
FB: http://www.facebook.com/ChickfilA TWITTER: https://twitter.com/ChickfilA/
17
Wendy’s
2,816,268
144,278
FB: http://www.facebook.com/wendys TWITTER: https://twitter.com/wendys
18
Radio Shack
1,559,229
133,536
FB: http://www.facebook.com/RadioShack TWITTER: https://twitter.com/#!/RadioShack
19
Burger King
5,955,189
78,591
FB: http://www.facebook.com/burgerking TWITTER: https://twitter.com/BurgerKing
20
7-Eleven
2,562,073
29,343
FB: http://www.facebook.com/7Eleven TWITTER: https://twitter.com/#!/7eleven
21
Papa John’s
2,653,742
65,942
FB: http://www.facebook.com/papajohns TWITTER: https://twitter.com/#!/PapaJohns
22
Sonic Drive-In
2,321,405
32,763
FB: http://www.facebook.com/sonicdrivein TWITTER: https://twitter.com/#!/sonicdrive_in
23
Cold Stone Creamery
1,974,969
15,390
FB: http://www.facebook.com/coldstonecreamery TWITTER: https://twitter.com/#!/ColdStone
24
Kentucky Fried Chicken
6,068,352
117,679
FB: http://www.facebook.com/KFC TWITTER: https://twitter.com/#!/kfc_colonel
25
Little Caesar’s
1,395,767
8,078
FB: http://www.facebook.com/LittleCaesars TWITTER: https://twitter.com/littlecaesars
1851 MAGAZINE INAUGURAL PRINT EDITION
* Numbers are current as of 1.14.13
Franchise
Rank
# of Facebook Followers/ Likes
# of Twitter Followers
Facebook + Link Link
26
Hardees
815,399
16,119
FB: http://www.facebook.com/Hardees TWITTER: https://twitter.com/#!/Hardees
27
Edible Arrangements
615,775
22,114
FB: http://www.facebook.com/ediblearrangements TWITTER: https://twitter.com/#!/edible
28
Cinnabon
871,349
28,663
FB: http://www.facebook.com/Cinnabon TWITTER: http://twitter.com/#!/Cinnabon
29
Hungry Howie’s Pizza
211,108
2,383
FB: http://www.facebook.com/hungryhowies TWITTER: https://twitter.com/#!/hungry4howies
30
Yogurtland Franchising Inc.
288,660
7,874
FB: http://www.facebook.com/yogurtland TWITTER: https://twitter.com/YogurtlandInc
31
Famous Dave’s
317,255
28,335
FB: http://www.facebook.com/famousdaves TWITTER: https://twitter.com/famous_dav
32
Quiznos
1,028,153
23,731
FB: http://www.facebook.com/Quiznos TWITTER: https://twitter.com/#!/Quiznos
33
Moe’s Southwest Grill
243,315
22,629
FB: http://www.facebook.com/moessouthwestgrill TWITTER: http://twitter.com/#!/Moes_HQ
34
Sears Home & Business Franchises
2,210,150
83,143
FB: http://www.facebook.com/sears TWITTER: https://twitter.com/Sears
35
CiCi’s Pizza
930,129
1,719
FB: http://www.facebook.com/Cicis TWITTER: https://twitter.com/#!/CiCis_Pizza
36
Toppers Pizza
56,112
3,695
FB: http://www.facebook.com/ToppersRocks TWITTER: https://twitter.com/#!/ToppersPizza
37
Auntie Anne’s Pretzels
738,390
28,191
FB: http://www.facebook.com/auntieannespretzels TWITTER: http://twitter.com/#!/Auntieannes
38
GNC Franchising
959,584
100,236
FB: http://www.facebook.com/GNCLiveWell TWITTER: https://twitter.com/#!/GNCLiveWell
39
Rita’s Water Ice
723,220
15,928
FB: http://www.facebook.com/RitasItalianIceCompany TWITTER: https://twitter.com/#!/RitasItalianIce
40
Bojangles’ Restaurants, Inc.
287,772
5,504
FB: http://www.facebook.com/Bojangles TWITTER: http://twitter.com/#!/Bojangles1977
1851 PROJECT.COM | 2013 41
* Numbers are current as of 1.14.13
Franchise
Rank
42
# of Facebook Followers/ Likes
# of Twitter Followers
Facebook + Link Link
41
Five Guys
816,500
22,630
FB: http://www.facebook.com/fiveguys TWITTER: https://twitter.com/Five_Guys/
42
Popeye’s Louisiana Kitchen
333,985
14,056
FB: http://www.facebook.com/PopeyesLouisianaKitchen TWITTER: https://twitter.com/PopeyesChicken
43
School of Rock
279,123
5,309
FB: http://www.facebook.com/SchoolofRockUSA TWITTER: https://twitter.com/#!/SchoolOfRockUSA
44
Hampton Hotels
249,178
16,696
FB: http://www.facebook.com/Hampton TWITTER: https://twitter.com/#!/hampton
45
Firehouse Subs
384,493
17,033
FB: http://www.facebook.com/firehousesubs TWITTER: http://twitter.com/#!/FirehouseSubs
46
Smashburger Franchising LLC
95,397
9,190
FB: http://www.facebook.com/smashburger TWITTER: https://twitter.com/Smashburger
47
Double Tree by Hilton
178,484
45,629
FB: https://www.facebook.com/Doubletree TWITTER: https://twitter.com/#!/doubletree
48
Lenny’s Sub Shop
89,258
3,734
FB: http://www.facebook.com/LennysSubs TWITTER: https://twitter.com/#!/lennyssubs
49
Which Wich Superior Sandwiches
170,653
13,116
FB: http://www.facebook.com/whichwich TWITTER: https://twitter.com/#!/whichwich
50
Taco John’s Int’l. Inc.
111,223
6,639
FB: http://www.facebook.com/tacojohns TWITTER: https://twitter.com/#!/tacojohns
51
Checkers Drive-In Restaurants
129,127
1,355
FB: http://www.facebook.com/checkersrallys TWITTER: https://twitter.com/checkersrallys
52
The Melting Pot
341,057
12,122
FB: http://www.facebook.com/themeltingpotrestaurants TWITTER: https://twitter.com/#!/TheMeltingPot
53
Smoothie King
287,464
3,790
FB: http://www.facebook.com/SmoothieKing TWITTER: https://twitter.com/#!/smoothieking
54
MOOYAH Franchise
57,137
21,286
FB: http://www.facebook.com/Mooyah TWITTER: https://twitter.com/#!/mooyahburger
55
Embassy Suites Hotel
358,421
13,052
FB: https://www.facebook.com/EmbassySuitesHotels TWITTER: https://twitter.com/#!/EmbassySuites
1851 MAGAZINE INAUGURAL PRINT EDITION
* Numbers are current as of 1.14.13
Franchise
Rank
# of Facebook Followers/ Likes
# of Twitter Followers
Facebook + Link Link
56
Wingstop Restaurants Inc.
191,610
21,765
FB: http://www.facebook.com/Wingstop TWITTER: http://twitter.com/#!/wingstop
57
H&R Block
143,187
13,759
FB: http://www.facebook.com/hrblock TWITTER: https://twitter.com/#!/HRBlock
58
Qdoba Mexican Grill
132,955
16,575
FB: http://www.facebook.com/QdobaMexicanGrill TWITTER: http://twitter.com/#!/QdobaMexGrill
59
Hilton Garden Inn
105,159
2,197
FB: http://www.facebook.com/HiltonGardenInn TWITTER: http://twitter.com/#!/maidbrigade
60
Great Clips
72,080
5,381
FB: http://www.facebook.com/GreatClips TWITTER: https://twitter.com/#!/GreatClips
61
Huddle House
46,527
3,430
FB: http://www.facebook.com/ILoveHuddleHouse TWITTER: https://twitter.com/#!/huddlehouse
62
A&W Restaurants Inc.
153,427
3,872
FB: http://www.facebook.com/awrestaurants TWITTER: https://twitter.com/#!/awrestaurants
63
Pizza Ranch
74, 365
2, 041
FB: http://www.facebook.com/PizzaRanchRacing TWITTER: https://twitter.com/pizzaranch
64
Charley’s Grilled Subs
165,263
1,970
FB: http://www.facebook.com/CharleysPhillySteaks TWITTER: http://twitter.com/#!/Charleys
65
Ace Hardware
369, 051
17,548
FB: http://www.facebook.com/acehardware TWITTER: https://twitter.com/#!/AceHardware
66
ampm
364, 665
9,281
FB: http://www.facebook.com/ampm TWITTER: https://twitter.com/#!/ampm
67
Anytime Fitness
85,950
60,602
FB: http://www.facebook.com/AnytimeFitnessOfficial TWITTER: https://twitter.com/#!/AnytimeFitness
68
Genghis Grill
94,489
27,319
FB: http://www.facebook.com/genghisgrill TWITTER: https://twitter.com/#!/genghisgrill
69
Marble Slab Creamery
143, 984
958
FB: http://www.facebook.com/marbleslabcreamery TWITTER: https://twitter.com/#!/marbleslab
70
Captain D’s
69, 192
2,557
FB: http://www.facebook.com/CaptainDs TWITTER: https://twitter.com/#!/CaptainDs
1851 PROJECT.COM | 2013 43
* Numbers are current as of 1.14.13
Franchise
Rank
# of Twitter Followers
Facebook + Link Link
71
Denny’s
604,051
18,080
FB: http://www.facebook.com/dennys TWITTER: https://twitter.com/#!/DennysDiner
72
The UPS Store
116,778
3,865
FB: http://www.facebook.com/theupsstore TWITTER: https://twitter.com/#!/TheUPSStore
73
Snap On Tools
294, 050
6,873
FB: http://www.facebook.com/SnaponTools TWITTER: https://twitter.com/#!/Snapon_Tools
74
Massage Envy
89,727
4, 257
FB: http://www.facebook.com/MassageEnvy TWITTER: https://twitter.com/#!/MassageEnvy
75
Capriotti’s Sandwich Shop
49,843
10, 327
FB: http://www.facebook.com/capriottis TWITTER: https://twitter.com/#!/capriottis
76
Fetch! Pet Care
28,899
2,160
FB: http://www.facebook.com/fetchcorporate TWITTER: http://www.twitter.com/fetchpetcare
Goddard Systems, Inc.
15,856
3,389
FB: http://www.facebook.com/goddardschool TWITTER: http://twitter.com/#!/goddardschool
Golden Corral
321, 166
5, 445
FB: http://www.facebook.com/goldencorral TWITTER: https://twitter.com/GOLDENCORRAL
79
Wing Zone
18, 870
2,811
FB: http://www.facebook.com/WingZoneNation TWITTER: https://twitter.com/#!/wingzone
80
Radisson Hotels
75, 832
3, 852
FB: http://www.facebook.com/Radisson TWITTER: https://twitter.com/#!/radisson
81
Orange Leaf Frozen Yogurt
73, 860
7, 976
FB: http://www.facebook.com/orangeleafyogurt TWITTER: https://twitter.com/#!/myorangeleaf
82
Papa Murphy’s
200, 802
945
FB: http://www.facebook.com/papamurphyspizza TWITTER: https://twitter.com/#!/papamurphyspizza
83
The Haagen-Dazs Shoppe Co.
64, 894
1, 838
FB: http://www.facebook.com/haagendazsshops TWITTER: https://twitter.com/#!/haagendazsshops
84
Pita Pit
31, 392
3,392
FB: http://www.facebook.com/pitapitrocks TWITTER: https://twitter.com/#!/pitapitusa
85
Biggby Coffee
20,148
7,746
FB: http://www.facebook.com/BiggbyCoffee.Bhappy TWITTER: https://twitter.com/BiggbyBob
77 78
44
# of Facebook Followers/ Likes
1851 MAGAZINE INAUGURAL PRINT EDITION
* Numbers are current as of 1.14.13
Franchise
Rank
# of Facebook Followers/ Likes
# of Twitter Followers
Facebook + Link Link
86
Lawn Doctor
10,117
822
FB: http://www.facebook.com/LawnDoctorFans?ref=ts TWITTER: https://twitter.com/LawnDoctor
87
Culver Franchising System Inc.
332, 722
12,674
FB: http://www.facebook.com/culvers TWITTER: https://twitter.com/#!/culvers
88
Long John Silver’s
82,461
6,326
FB: http://www.facebook.com/LongJohnSilvers TWITTER: https://twitter.com/#!/longjohnslvrs
89
Philly Pretzel Factory
24, 028
2,406
FB: http://www.facebook.com/PhillyPretzel TWITTER: https://twitter.com/#!/ppfpretzels
90
Matco Tools
149, 359
1,359
FB: http://www.facebook.com/matcotools TWITTER: https://twitter.com/#!/matcotools
91
Bruster’s Real Ice Cream
66, 785
78
FB: http://www.facebook.com/BrustersRealIceCream TWITTER: https://twitter.com/#!/realicecream
92
Hilton Garden Inn
105,157
2,197
FB: http://www.facebook.com/HiltonGardenInn TWITTER: http://twitter.com/#!/maidbrigade
93
Right at Home
6,031
3,363
FB: http://www.facebook.com/pages/Right-at-Home/138394643218 TWITTER: https://twitter.com/#!/rightathomeus
94
Forever Yogurt
6,247
2,805
95
Jersey Mike’s Subs
77,449
4,613
FB: http://www.facebook.com/jerseymikes TWITTER: https://twitter.com/#!/lovejerseymikes
96
Planet Fitness
245,712
16,915
FB: http://www.facebook.com/planetfitness TWITTER: https://twitter.com/#!/planet_fitness
97
Choice Hotels
114,918
12,915
FB: http://www.facebook.com/choicehotels TWITTER: http://twitter.com/#!/ChoiceHotels
98
Supercuts
39,953
4978
FB: http://www.facebook.com/Supercuts TWITTER: https://twitter.com/#!/Supercuts
99
TCBY
76,478
9,431
FB: https://www.facebook.com/tcby TWITTER: https://twitter.com/#!/tcby
100
Stevie B’s Pizza
62,635
1,159
FB: http://www.facebook.com/SteviBsPizza TWITTER: https://twitter.com/#!/stevibs
FB: http://www.facebook.com/pages/Forever-Yogurt/129135957108387?fref=ts
TWITTER: https://twitter.com/ForeverYogurt
1851 PROJECT.COM | 2013 45
PEYTON & PAPA In October of 2012, Peyton Manning became known for more than being the quarterback of the Denver Broncos. Manning purchased 21 Papa John’s franchises in the Denver area, likely the result of his friendship with Papa himself, John Schattner. Not only is the deal sure to be a lucrative enterprise for Manning, but Papa John’s and Manning have already done a number of commercials together, acting as a franchisee and a spokesman for the delivery pizza brand at the same time.
FRANCHISES TURN TO ATHLETES TO POWER BUSINESS By Steve Coomes For professional athletes, there comes a time
“When you tell yourself, ‘I’ll get into it
when the word “professional” gets taken out of
and get somebody to run it while I do
the picture. What follows is usually a struggle
something else,’ that’s always a recipe
of finding beneficial and, more importantly,
for failure,” said Bridgeman, whose B.P.
meaningful work after sports. Established
Companies owns 165 Wendy’s and 127
rarity, says Troy players have the “ These RESOURCES and the DESIRE to succeed.
”
Vincent, whose NFL career with the Washington Redskins, Miami
franchise systems
Chili’s. For better than
Dolphins and
often present ideal
half of his 25 years with Wendy’s,
Philadelphia Eagles spanned 15 years. Today he’s
opportunities for these
Bridgeman worked the lunch
Vice President of the NFL Player Engagement
former stars to get
shift almost daily to ensure he
and working to help ex-footballers learn more
started in business
knew as much as any employee
about franchise opportunities.
without requiring them
in his system. “If you’re going to
to re-invent the wheel.
be successful in this, you have
While most athletes are showered with business
to know what it takes to do the
opportunities after their careers, Vincent says
But that doesn’t mean
job. That’s the part that seems to
many make bad decisions unintentionally with
becoming a franchisee
escape people coming into the
their hard-earned millions.
is easy, says Ulysses
industry. Franchising provides
“Junior” Bridgeman, a retired NBA star for
Image courtesy of the Milwaukee Bucks.
great systems, but you still have
“It’s a lack of education and awareness, and we
to work them.”
want to help them with that,” said Vincent. He’s
the Milwaukee Bucks.
now leading the league’s partnership with the
Bridgeman, who became a Wendy’s franchisee
According to Forbes, Bridgeman is the 18th
International Franchise Association to form the
shortly before his 12-year career ended, says
wealthiest African-American in the U.S. and
NFL Franchising Boot Camp, which will launch April
successful franchisees are highly-active in
has a net worth of more than $200 million.
26-29, 2013, at the Ross School of Business at the
their businesses.
His exceptional success off the hardwood is a
University of Michigan in Ann Arbor. “These players
46
1851 MAGAZINE INAUGURAL PRINT EDITION
BIG shots
PEYTON MANNING
Image courtesy of Jeffrey Beall (Flickr member) Creative Commons Attribution license.
Image courtesy of Steve Lipofsky Creative Commons Attribution-Share Alike 3.0 Unported license.
Magic Johnson This Hall of Famer built his own Starbucks franchise empire before selling 105 of his locations back to the company, making a cool $70 million in the process.
Image courtesy of Tulane Public Relations (Flickr member) Creative Commons Attribution license.
Drew Brees
already are in the concept to get the unedited, unabridged version of the story. After that, I’d talk to others in the restaurant business and get
When he isn’t throwing touchdown passes for the New Orleans Saints, Brees fulfills his duties as the co-owner of a New Orleans Jimmy John’s location. Brees opened his second Jimmy John’s location this past summer and is reportedly looking to continue the expansion of the brand throughout the area.
their take on the brand.” Both Bridgeman and Vincent acknowledged that franchising’s popularity among current athletes (Papa John’s signed Denver Bronco’s quarterback Peyton Manning, New Orleans have the resources and the desire to succeed, but
Saint’s quarterback Drew Brees is a Jimmy
they need direction. Over the four days of the boot
John’s franchisee, and Milwaukee Bucks forward
camp, they’ll get that.”
Drew Gooden is a Wingstop man) makes the opportunity more alluring. But as Bridgeman
Vincent said participants can expect individual
stresses, an athlete who merely invests in the
face time with franchisors, franchisees and IFA
business might not get the return or enjoyment
executives who can better explain their options.
he’s seeking.
Such an intense due diligence opportunity is a
“If you don’t have a passion for that brand,
blessing, Bridgeman says, because serious fact
definitely don’t get in it,” Bridgeman advises.
gathering is essential to making good choices.
“The restaurant business, especially, is like
Image courtesy of Angela N. (Flickr member) Creative Commons Attribution license.
Venus Williams Thirsty for a smoothie? Head to one of the tennis superstar’s Jamba Juice franchises, the second of which opened in July 2012 outside of Washington, D.C.
sports: competitive, people-focused and takes a “If I were counseling an athlete, I’d tell him
lot of hours to make it work. But if you find that’s
to talk to the brand he’s interested in first,”
the type of business that fits what you’re after,
Bridgemansays. “Then I’d talk to franchisees who
give it a shot.” 1851 PROJECT.COM | 2013 47
THE MULTI-UNIT MAN ADVICE FROM AZIZ HASHIM THE MULTI-UNIT FRANCHISING GURU.
By Nick Powills
AZIZ HASHIM
Founded in 1995, NRD If Aziz Hashim had a dollar for every time a new franchisor asked for advice on how to market their franchise opportunity to him, he might be able to retire from franchising. The reason Hashim is asked so many questions is because he has a bullseye on his back.
Holdings, LLC, owns over 60 restaurants, including Popeyes, Domino’s Pizza and Checkers/Rally’s
After the franchise portals stopped delivering a constant flow of new leads and deals
Drive-In Restaurants. One
to franchisors, marketing strategies adapted and focused on the multi-unit franchisee
of the franchise industry’s
audience with hopes that a zee who could open three units at the same time, rather than one, would instantly provide great returns.
superstars, NRD’s Founder, President and CEO, Aziz Hashim, continues to be a leading multi-state, multi-
While true, once every franchisor started marketing toward that audience, the marketing strategies were no longer unique and became rather dull. Hashim founded NRD, a U.S. company, in 1996, with one QSR location and has since grown the company to over 60 restaurants, including several high-profile brands including Popeyes, Domino’s Pizza and Checkers/Rally’s Drive-In Restaurants, Inc. He expanded his portfolio with his international retail company, Dandle, Inc., and grew even more in 2010 as a franchisee of PetValu, a major pet supply franchisor in Canada. Hashim also serves on several boards including the Popeyes Foundation, the Multi-Unit Franchise Conference and the BB&T Bank regional advisory board. Hashim provided 1851 with tips for how to succeed as a multi-unit franchisee.
48
1851 MAGAZINE INAUGURAL PRINT EDITION
brand and multi-national franchisee. 1851 sat down with Aziz to learn more about what makes him tick.
ROI IS WHAT REALLY COUNTS
franchisees, especially if you have some strong
KNOW YOUR AUDIENCE
I don’t really look at the earnings claim. That’s just
credible players in that group. If there are
I don’t think franchisors think about who their
the claim and we all know there are ways around
credible people involved in the brand, it will help
audience is. If you are targeting the multi-unit
those numbers. The more attractive piece to talk
you validate your brand. However, I have never
audience and you have a sales guy who doesn’t
about is the true ROI. I don’t care if you are No. 1
bought a brand because someone I knew was
know how to talk to them, you are already
in category, or No. 1 in growth —what I care about
associated with that brand. That doesn’t enter
eliminating hope. If I were running my brand,
is whether or not I can make a return on
my discussion. If I know someone, I may pick up
I would divide my sales team in two: a multi-
my investment.
the phone and get some insight from them and
unit and a single-unit team. There is a different
use that franchisee as a form of reference, but I
approach to take with each of these groups.
SET REASONABLE GOALS
will ultimately circle back to ROI and discussions I
The single-unit person will want to go through
Don’t shoot for the sky right away. It took Fred
have with the senior people behind the brand.
the complete sales process while the multi-unit
Deluca (Co-founder of Subway) 10 years to get
person wants to go straight to the top. To me, the
to that first 200. Then they took off. Don’t try to
USE YOUR DEVELOPMENT WEBSITE
sales person I want to deal with is the CEO of the
open 100s every year if you don’t have the force
When it comes to your development website, use
brand. If the CEO refuses to talk with me, then
to support and perfect the model. Build your infrastructure and get the concept right before pushing the pedal too hard.
FALL BACK ON FUNDAMENTALS
it as a guide for quick reference.
Don’t shoot for the sky right away
that’s not the right brand for me.
A lot of brands don’t like to put up proprietary information, but at the end of the day, all of that information is accessible. I want to know the typical size of your real estate, your demographics, and your footprint. Those are
Go back to the sales fundamentals. Work hard
helpful to have at my fingertips. Don’t think you
and growth is not impossible. There are brands
are giving anything away, just make sure there is
out there that do a good job. You can see that
basic information for me to find.
the ones that do a good job are the ones that are constantly landing the big franchisees. Follow
PRESNTATION MATTERS
other brands.
I will look at any brand. In fact, I am constantly researching opportunities. Chances are, I already
THE TRUTH ABOUT DIRECT MAIL.
know who you are and know much of your sales
You know how you get junk mail at home and
information. Would I ever buy a start-up? That’s
throw it away? That’s the same with me and
tough. When a multi-unit person’s company is
the direct mail pieces that are sent to me from
larger than the company that is trying to sell
franchisors. In fact, my staff throws it away before
them, it makes it somewhat challenging because I
it gets to me. In my opinion, direct mail is kind of
have more experience than you do. On the other
a waste of time. I don’t think franchisors will get
side of the spectrum, newer brands represent
a bang for their buck with direct mail. I am sure
more opportunity and wide open territory. When
some of them get call backs and some leads –
I am talking with brands with fewer than 100
especially since so many do it–but if you are going
units, chances are the sales team is the CEO,
to reach a real multi-unit franchisee, I don’t think
which means, there is not a process in place to
mail solicitation is the way to go because we get
support me coming on board. Think about
way too much of it.
the way you present the opportunity. This
MARKET YOUR EXISTING ZEES
will be critical to
I think it’s OK to market to your existing
your success.
AZIZ HASHIM Image courtesy of The International Franchise Association
1851 PROJECT.COM | 2013 49
editorial sections / due diligence / industry calendar / franchise resources 1851 Magazine is a monthly online publication with themed issues released on the 18th of every month. New content appears daily, Monday through Friday. 1851 was created to fill a gap in coverage of the franchise industry by providing an online educational resource where readers find daily content from thought leaders, industry experts and entrepreneurs.
www.1851project.com | facebook.com/1851magazine | @1851magazine
ROAD WARRIORS By Ralle Karadjov Gone are the inconvenient days of stationary desktops, handwritten Rolodexes and internet dial-up. With the arrival of 2013, comprehensive technology has elevated the business environment in more ways than just texts and tweets. Our international economy thrives off new inventions and global gadgets that have truly changed the way we do business. Traveling for work has become almost a necessity in order to reach new marketplaces, secure development deals and achieve brand name status. The key to a stress-free business trip lies with efficiency. Technology has made business traveling much simpler, resourceful and effective. From noise cancelling headphones for long flights to phones that navigate to the nearest coffee shop, the tech world will continue influencing our global economy. We’ve interviewed the franchise world’s top travelers for an inside look into their tech savvy bags to uncover their on-the-road necessities.
Steve Caldeira President and CEO of the International Franchise Association As President and CEO of the IFA, Steve’s job requires him to travel 35 percent to 45 percent of the year to speak, promote, and attend events on behalf of the franchise industry. Recently, Steve has increased his internationally trips to include South America and Asia to connect with franchise sectors in these growing markets. Tips for Travel Rest and exercise when you can, and don’t be afraid to ask a restaurant to consider making something that may be a tad healthier than what’s on the menu,” Caldeira says. “If you are respectful and let them know that you appreciate their consideration, most restaurants will work with you.” Working while traveling is easy because I have an… iPhone You will never catch me traveling without... 1. Peanut Butter Cliff Bars 2. Gillette Fusion Razor Blades 3. Ambien
Jania Bailey President and COO of FranNet Jania travels around 30 percent to 40 percent of the year. Her job takes her throughout the United States, particularly for industry meetings in Las Vegas, Atlanta and Washington, D.C. Which electronics have made your life easier while working out of the office? I could not live without my iPhone and iPad. They have made it so much easier to communicate when traveling. I love the fact that they sync with my computers so I’m always up to date. Tips for Travel Try to stay up to date on e-mails and calls so that you are not buried alive when you get back to the office. Also, try to eat like you do at home to avoid big changes in your diet or sleep routine. You will never catch me traveling without... 1. iPhone 2. iPad 3. Laptop
Jim Murphy Founder and Chairman of Afterburner, Inc. As the Founder and Chairman of Afterburner, Inc., Jim, or “Murph” as he goes by, travels two days a week on average. With offices in Australia and Brazil, Murph has travelled domestically and internationally, including trips to Brazil, Portugal, Argentina, Singapore and Canada this past year. Which electronics have made your life easier while working out of the office? A magicJack phone hookup; once installed it creates a very lowcost international land line that worked great for me in Brazil. Tips for Travel If you use the new slim design laptops, it’s best to carry extra software protection dongles, at least three packed in different bags. This way, if you’re doing a presentation and need a VGA hook up to the projector, you will be ready. Also, it’s best to always carry a backup presentation on a thumb drive in a separate bag or carry it in your pocket for a safe backup option.
You will never catch me traveling without... 1. iPad mini 2. iPhone 3. Laptop with plug convertors for International travel 1851 PROJECT.COM | 2013 51
Tips
Travel for
By Chris Powills
Booking travel can be a tiring and stressful
agents- with actual offices, and hopefully
experience. Understanding the best practices
helpful personnel, that would provide advice
of booking travel can help relieve some of
or help to book your trip in its entirety. And
that stress and can help save time and money.
then there are OTAs, or online travel agents,
Saving money and getting the best deal has
which are travel booking platforms that allow
never been easier with information that is
you to do most of the planning and booking
provided on the Internet. However, knowing
activities on your own.”
where to find the information and how to conduct the necessary research can be tricky.
Using a travel agent mostly depends on the traveler’s needs and preferences. Karadjov
There are many this to consider when booking
goes to explain that “in general, simpler travel
travel, including asking questions like when
(round trip, rental car and hotel) can easily
is the best time to travel? How can one find
be handled online. More complex travel,
information on airports? What are some
involving international, multi-city travel,
money saving tips for travel? These questions
stop-overs or a larger group of travelers, is
and more should be in everyone’s mind when
where traditional travel agents provide the
trying to book travel. Sometimes it is best to
most value.”
use travel agents throughout the process,
All statistics are from the U.S. Travel Association 52 1851 MAGAZINE INAUGURAL PRINT EDITION
but it is not necessary. According to travel
Flexibility can be another factor when
expert Yuri Karadjov, “Travel agents today
booking travel. Leisure travel tends to give
are not what they used to be only a few
the most wiggle room for travel dates. This
years ago. There are the traditional travel
can be used as an advantage if research is
Our favorite travel booking websites Kayak – www.kayak.com: Kayak’s website is clean, intuitive and able to pull prices from hundreds of travel sites for everything from flights and hotels to cruises and full-package vacations. Travelocity – www.travelocity.com: We like Travelocity because of its partnership with Virgin Atlantic Airways for those times you hear London calling. Google – www.google.com: The search engine does a fantastic job pulling rates for flights and other travel necessities. All you have to do is search for something like “Flights from New York to L.A.”
It is important to do research when booking travel. done right. Travelers should look to book
However, businesses can sometimes receive
the best thing is to check the airline’s website
corporate discounts that can even sometimes
for the baggage policy.”
be negotiated. With business travel, be weary, as “in many cases business travel is
A lot of information can be found on useful
subject to corporate policies, which dictate
websites. “Seatguru.com is one travel site
what type of travel agents or channels one is
which provides information about the good,
allowed to use, the class of travel (economy,
bad and ugly of each type of aircraft and
business, etc.), approved hotels and rental car
flights,” Karadjov said.
companies,” explained Karadjov.
ahead of time and buy based off of the trends
Websites like Airportplugs.com and Airpower.
of ticket pricing. “All travel vendors set their
The best way to find information regarding
jeffsandquist.com also provide travelers with
prices according to the demand and supply
rules and regulations, baggage fees and
possible places to plug in electronic devices at
situation at the time of the planned travel,”
information is to research via the internet.
airports. Both websites are still evolving and
said Karadjov. “If the demand is higher on
Rules and regulations comply with domestic
have recently added pictures for plug in areas
specific days, then the prices are likely to be
and international statues and standards.
at certain airports.
higher, and vice-versa. So it is worth checking
Baggage fees are usually listed on airline
alternative days and even times of the day
sites as well. “There are still airlines, such as
At the end of the day, it’s important to do your
for flights.”
Southwest Airlines, that do not charge fees
research when booking travel. Understanding
for check bags,” said Karadjov. “baggage fees
where to look on the web is essential to
When booking for business, the dates of
are also waived based on the traveler’s status
relieve stress and to find the best information
travel can be limited and it might be difficult
with airline and the travel destination. As
when booking travel, ensuring a safe and
to book on certain “alternative” days.
there is no standard that governs these fees,
comfortable journey.
1851 PROJECT.COM | 2013 53
WHAT TO KNOW ON THE GO By Pari Manikas When clients are in town, it’s often a difficult decision to decide where to sleep, dine and drink. We interviewed some industry experts to give you a list of the best places to eat, drink, and stay in franchise hubs.
Expert Matt Haller
City
Places To Eat
Places To Sleep
Places To Drink
Washington, D.C.
Morton’s Steakhouse Pearl Drive Oyster Estardio
Willard Intercontinental JW Marriott The Washington Hilton
PJ Clarkes Round Robin Scotch Bar The Oyster Bar Off The Record Brasserie Beck
Atlanta, GA
New York Prime
The Intercontinental
Prohibition
New York City, NY
Hell’s Kitchen Patsy’s Dos Camino’s
The Marriott The Hilton The Hyatt
Red Lion The Bar at the Ace Hotel The Gramercy Park Hotel
Minneapolis, MN
MASA 112 Eatery Bar LaGrassa
The Hilton The W Graves 601 Hotel
Brit’s The Local La Bella Vie
Denver, CO
The Palm Elway’s Steakhouse
The Hilton Garden Inn The Marriott
Elway’s Bar
VP Public Affairs, IFA
Stan Friedman VP, North America Franchise Development, Tutor Doctor
Gary Occhiogrosso Chief Development Officer, TRUFOODS
Victor Salamone VP Franchise Operations and Development, Famous Dave’s
Stuart Mathis CEO, Quiznos
1851 PROJECT.COM | 2013 55
BEST CITIES TO OPEN A BUSINESS By Jordy Patano Ever dreamed of becoming a small business owner and wondered what’s the best environment for a start-up? We’re here to help you figure out if a move is the right choice to spark your entrepreneurial spirit. Below is a list of the top cities that are the friendliest to new businesses. We took into consideration the growth of each city, impact that franchising has overall, tax-benefits and the overall acceptance of newly launched businesses.
1. Austin, TX Austin has been one of the fastest-growing cities for the past three years and it doesn’t seem to be slowing down. Austin is seeing an influx of new residents who are demanding new businesses to keep up with such tremendous growth. Opportunity abounds here.
46.88 91%
The highest Small Business Vitality Score in the country. Rate at which the population is rising.
136,900 Jobs created through franchising. 9,000 Current Franchises. 4,436 Workplaces provided through franchising.
2. Raleigh, NC Similar to Austin, the economic climate and continued population growth are the perfect combination to foster small business growth and corporate relocation. Raleigh has seen an upward population change that is expected to continue, and the city also maintains a strong and thriving economic market.
40.89 86.5%
Small Business Vitality Score. Rate at which the population is rising.
55,000 Jobs created through franchising. 3,700 Workplaces provided through franchising.
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1851 MAGAZINE INAUGURAL PRINT EDITION
3. Houston, TX Texas and its major cities have continued booming, and Houston is no different, with tax benefits for business owners and a positive environment for hiring.
37.48
The highest Small Business Vitality Score in the country.
50%
Rate at which the population is rising.
211,800 Jobs created through franchising. 5,300 Current Franchises.
4. Salt Lake City, UT With highly-favorable business conditions and room for growth, the Salt Lake City-Provo area is experiencing an influx of residents as well as new business headquarters, where residents can experience both the benefits of the West in an urban environment.
33.10
Small Business Vitality Score.
66.9%
Rate at which the population is rising.
90,000 Jobs created through franchising. 2,956 Workplaces provided through franchising.
5. Atlanta, GA Atlanta is a hub for both Fortune 500 companies and some of the biggest franchisors in the industry. Not to mention the state government is creating a welcoming environment to corporations looking to expand their presence.
33.10
Small Business Vitality Score.
67.8%
Rate at which the population is rising.
362,900 Jobs created through franchising. 10,370 Current Franchises.
1851 PROJECT.COM | 2013 57
GO WITH THE FLOW: GREG TANNER By Nick Powills If you don’t know Greg Tanner by now, you must have been hiding under a rock. Tanner is the king of awareness and leveraging within the franchise community. While he serves as the National Director of Franchising for Aaron’s, a leaseto-own appliance company, he is better known for taking punches at non-direct competition with mock logos. He is also the author of his personal guide to franchising, which he has rightfully named Tannerisms. 1851 caught up Tanner while driving the back roads of Georgia on his way home from another day on the job. NP: Greg, I couldn’t think of anyone better than you for the launch of my “Go with the Flow” column. GT: Is that flattering? NP: Of course it is. You are king of Tannerisms. King of knowledge. King of franchising. GT: Ha. That’s not that hard to accomplish. NP: I know you have told me this story a million times. Literally a million times. But tell it to me again. What’s the story with the napkin? GT: Well, it launched my career with Aaron’s. I got a call from Doug Kushell (www.franchisesearch.com). He called
and said, “Hey Greg, I think I got someone who may be interested in hiring you. Do you have a resume?” Hell, I hadn’t made my resume in 20 years. So, I said, “Here’s what I will do, I will jot something down on a napkin and fax it over to you cause I am at a hotel bar and that’s the best I can do.” So, I jotted down some BS information, not expecting it to go very far, went to the hotel fax machine and sent it to Kushell. Next thing I knew, I was getting hired at Aaron’s. That napkin really got me where I needed to go and he still has that napkin framed in his office. True story.
GT: Yeah. I told Kushell that people should only judge you on one thing in the franchise industry: have I made more money every year of my career? All that sophistication BS, the strength in marketing and blah blah blah, doesn’t mean (donkey). More money every year means he knows how to sell franchises. You read resumes about these damn development guys who claim to have grown brands and their resume looks like they could launch a rocket somewhere. Yeah right. You should always evaluate on whether or not the person has made more money every year of their career.
through the garbage? GT: Exactly. You can analyze every key word on a resume, but the facts are the facts.
1851 MAGAZINE INAUGURAL PRINT EDITION
GT: If you listen to a lot of the presentations of people who supposedly know what they are doing, they use a lot of different terminologies, like metrics or critical mass. What the (donkey) are they talking about? The bottom line is it is all about building relationships, being able to recruit and provide great information to a poor fellow looking to make the right decision. NP: You are personally branded. Why?
NP: That easy huh?
NP: Money helps you cut
58
NP: Over the last few years, has franchise development gotten worse or better?
GT: Walk through the IFA [International Franchise Association] convention and ask people if they know me. I am Tanner branded. People know Greg Tanner. Personal branding helps create awareness of the opportunity. NP: You used Tannerisms to personally brand yourself. GT: Yeah. I saw it as a stepping stone to be able to start the branding process. You become an authority as an author. I haven’t written anything that will turn into a movie or a pay-per-view TV special. All I created was a source for prospective franchisees to learn some insight into the purchasing process and for the franchise community to have no question as to who I was. NP: Do your prospects read it? GT: Aaron’s is a million dollar investment. People need to wake up and smell the roses. It’s about breaking down the walls and building a personal relationship. Think this book helps? I am a rare bird in this industry. But, I have fun doing it. I find the humor in everything I do.
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1851 PROJECT.COM | 2013 59
WE DID IT!
Safeguard exceeds $100 million in business acquisitions and mergers While others are slowing, the Safeguard franchise network is growing. Through the acquisition of independent businesses and resale to existing Safeguard franchisees, the Safeguard enterprise continues to expand in a monumental way. And it’s just the beginning. If you’re looking to find an organization that provides unparalleled, growth-focused resources to its franchisees, look no further than Safeguard. Whether you’re interested in buying an existing business from Safeguard, or starting your own organization from the ground up, contact us today.
Deno Scoular, CFE Director of Franchise Development, East Region
R. Scott Sutton, CFE Vice President
Donald Averitt Director of Franchise Development, West Region
Kevin Derella, CFE Executive Director of Franchise Development, Canada
Safeguard, through its network of franchisees, has been providing the products, services, and expertise needed by business owners to help their businesses grow. Through innovation, dedication, and a commitment to quality and integrity, Safeguard has transformed itself from a small check printing business to a fully diversified Print, Promotional, and Web Services enterprise. This information is not intended as an offer to sell, or solicitation of an offer to buy a franchise. It is for informational purposes only. © 2013 Safeguard. All rights reserved.
Connect with Safeguard at 1-800-338-0636 or visit us at www.safeguarddevelopment.com
@safeguardgrowth