Pillars of Franchising magazine - Issue 4 April/May 2022

PILLARS OF FRANCHISING

April/May 2022

Seasons of Change Hall of Fame Women’s Basketball Coach

Sherri Coale Finds Her Lane in Franchising

Buy a Franchise

Ruth Agbaji

Navigates the Ups and Downs of Acquisition

Find a Mentor

Create Buzz April/May 2022

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CONTENTS Seasons of Change

April/May 2022

Cover Story During a Season of Change.

8 Leadership Ruth Agbaji’s Code Wiz Poised for Growth.

Departments 4

Letter from the Editor

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Calendar of Events .

12

Welcome Laura Liss to Pillars

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Back to the Familiar

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Maintaining Your Financial Plan

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How to Make the Most of Marketing Your Seasonal Business

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The History of Franchising in the United States

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Spring Cleaning the Mental Clutter

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“Labor” is Not a Dirty Word. Getting Back to the Basics of Staffing.

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3 Year-Round Common-Sense. Tips (that are not so common)

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Sherri Coale

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What’s All This About “Fun” in Business?

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What You Can Do to Set Yourself Up for Success Pre-Funding Checklist:

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The Importance of Online Visibility and Creating a Strong Digital Footprint

Features the Board to the Mats A Q&A With 14 From Hall of Fame Women’s Basketball Coach Sherri Coale

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Featured Vendors

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Million Dollar Minute

Tune in Every Thursday!

The Pillars of Franchising Show Ruth Agbaji gives a raw interview about the cycle of emotions during a big transition and leading her team to new heights.

Editor-in-Chief Elizabeth Denham Elizabeth@PillarsOfFranchising.com CEO Kristin Selmeczy Kristin@PillarsOfFranchising.com Designer Annie Malloy malloyab@gmail.com Proofreader Cassidy Ford ford.cassidy@thefranchiseticker.com

What you will get:

Contact us at YourFuture@PillarsOfFranchising.com

• Education

Contributors Katie Bateman Nancy Chorpenning Nancy Friedman Michael Ianuzzi Dave Kajganich Harold Kestenbaum Kelly Krueger Michele Rempel Susan Scotts Karen Kimsey-Sward

• Resources

• Entertainment • Opportunities

Live on Thursdays at 2:00 PT | 3:00 MT | 4:00 CT | 5:00 ET Broadcast on Youtube, Facebook, Blogtalk Radio, LinkedIn, Twitch and more!

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Letter from the Editor

Seasons for

Change Dear Pillars of Franchising Community: This issue is all about seasons of change in business. Change is a normal and healthy occurrence in business, but with the last few years of pandemic disruption, it has come with more stress, uncertainty and unpredictability.

Our cover story subject this month is Ruth Agbaji, franchisor of Code Wiz. Already accustomed to change as an immigrant from Nigeria, Agbaji built a business from the ground up and recently sold it. While she remains on board at Code Wiz as the visionary leader, she has learned tons about herself and her business through the process of acquisition and growth.

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We also talk to Hall of Fame women’s basketball coach from the University of Oklahoma who has recently begun a new role as Culture Coach at NextGen Fitness. Her experience in building a winning team transcends basketball and has provided her a leadership role in her next career phase.

As usual, we have a jam-packed issue with our regular contributors and our Million Dollar Mentors, Kristin Selmeczy, Jerry Akers, Ray Pillar and David Kajganich who share their perspectives on the changes they have seen in their new businesses.

We also have meaty articles from Nancy Friedman, the Telephone Doctor, on customer service; Susan Scotts on franchise education; Michele Rempel on marketing; Harold Kestenbaum on legal issues; Kelly Krueger on funding; Michael Ianuzzi on tax/finance; Nancy Chorpenning on the power of a circle of women and our very own Million Dollar Mentor, David Kajganich on leadership. We also introduce Laura Liss, franchise attorney who has recently joined the team. Karen Kimsey-Sward of Dale Carnegie provides great advice on the labor shortage and staffing.

Join us on our social media, subscribe on the website and join us every Thursday at 4:00 CT for the Pillars of Franchising live stream! We look forward to serving you, and remember…

The Dream Starts Here!

Elizabeth Denham Editor-in-Chief

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Cover Story

Leadership During a Season of Change.

Ruth Agbaji’s Code Wiz Poised for Growth.

W

by Elizabeth Denham

hen Ruth Agbaji agreed to speak with Pillars of Franchising for this issue, she was invited to talk about planning for seasonal business throughout the year and ramping up for sum-

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mer programs as the CEO of her franchise, Code Wiz. What quickly came to light was that Agbaji and her business were both experiencing a season of change that includes rapid growth, expectation management and an emotional roller

coaster. These challenges have required a new level of leadership from Agbaji and her team so that her business can blossom, and she can forge an even greater path than she had previously imagined.

A Season of Change While Agbaji has some great advice on tackling the ebbs and flows of seasonal business (see sidebar), she has had to grow in new ways as a leader. In March 2021, Tutor Doctor bought Code Wiz after working for about a year together as aligned businesses that would refer students to one another. Now, the sky is the limit, and Agbaji is holding on for the ride and trying to adjust to the new possibilities.

“I have learned so much throughout the process of building a business and then a franchise,” Agbaji said. “And now with CSG, it is a whole new level of potential. It’s been exciting and stressful and a lot of learning what I know and don’t know.”

When CSG (Clear Summit Group), the parent company of

Tutor Doctor acquired Cod Wiz last year, Agbaji’s vision for her business had to evolve. And that evolution has come with laughter and excitement as well as tears and fear.

“I’ve been blessed with a sensitive conscience,” she noted. “And it has always been so important to me to ensure that my franchisees’ investments are protected.

I was very clear that I could only grow the business as fast as I could support it. Now, with CSG behind me, I have had to adjust

my vision and expectations. Now, the likelihood of someone losing their nest egg has been greatly reduced. My mindset has had to change, and this is not easy.”

Lessons on Embracing Change One of the most important lessons Agbaji has learned and honed is that of expectation-setting during a transition.

“From my side, It is important to prepare yourself for what is to come,” she said. “You have to stay humble. While you might be the expert on your brand, you still have a ton to learn. You have to stay open to others’ opinions – even about your brand, so leaving room for adjustments is important.”

On the acquisition side, expectations are equally as important.

“You have to recognize that this business is like someone’s child, so if you come in and bulldoze everything, you will be met with resistance,” Agbaji noted. “Setting expectations properly creates the best experience for everyone.

Tutor Doctor respected my brand

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“

…it has always been so important to me to ensure that my franchisees’ investments are protected.

and understood that it was like my third child.”

Once Agbaji learned to embrace the change and the possibilities, she realized how much more she had to learn. She explained that she has a perfectionist streak, and when Tutor Doctor came in, she thought they would see just how perfect everything was.

“They are not going to find anything, I thought, and boy was I wrong,” she laughed. “When I saw their operations manuals and

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KPIs– I knew what I didn’t know!”

One method that has helped Agbaji through this transition is the “Transition Curve of the Emotional Cycle of Change.” One change model that has been adapted from psychologists Don Kelley and Daryl Connor and discussed in The 12 Week Year, by Brian P. Moran identifies the stages and cycles of change.

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Uninformed optimism. This is the first stage and the most exciting as we imagine all the

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•

•

•

benefits that we are going to get from change Informed pessimism. This stage is characterized by a shift into negative emotions.

At this stage, the benefits don’t seem important and the costs of change are not that apparent The valley of despair. Most people give up at this stage.

They abandon the reason they wanted to change in the first place Informed optimism. The likelihood of success at this stage is higher. The benefits of your actions start to bear fruit Success and fulfillment. This is the stage where you complete the cycle and enjoy the full benefits of the change process.

Agbaji admits she has gone through all of these stages and

expects that she will continue to as she moves forward.

“Some people talk about going through these stages over time – months,” she said. “I have gone through them all every day or every week. It is not going to end.

I will just adjust, trust the process and know that I am not doing it alone. CSG and Tutor Doctor are available to me – that means everything to me.”

Effective Leadership Through Transition Agbaji also finds herself very aware that these changes do not just affect her. They affect her team, her franchisees and the customers of Code Wiz. She has learned that her tone, her attitude and her fears are telegraphed to those she leads.

“They pick up on it if I am stressed, tired or worried as much as they take on the excitement, optimism and energy,” she observed. “I have to be aware of what I am putting out to the team and the franchisees so that I lead from strength and not from fear.”

Agbaji has some tips for helping lead your team during a transition: •

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Prepare the team for change as much as possible. Things might change, and they need to embrace it.

Keep the parts of the culture that are good and be open to those that could be better. If

•

•

you embrace these changes, the team will as well.

Be aware that the energy you bring to work is the energy the team will take with them throughout the day.

Understand that leadership can be lonely, and surround yourself with others outside of your business who can relate to your situation.

Agbaji is looking forward to seeing Code Wiz grow as a part of Tutor Doctor and CSG. With 10 locations now, she hopes to grow to 25 this year, 100 in three years and 200 in five years.

To learn more about Code Wiz, please visit: https://codewizfranchise.com/ If you are interested in connecting with other franchisors, please contact us at yourdream@pillarsoffranchising.com.

Ruth Agbaji’s Tips for Seasonal Planning 1. Identify the busy and slow times in your business and lay out a calendar for the year.

2. Set goals and benchmarks for each season of your business based on previous years’ performances.

3. Plan hiring ramp-ups in plenty of time to get new employees trained and ready BEFORE the busy season.

4. Create a yearly plan, but make sure it is fluid as things often change quickly – especially in times of a pandemic and economic uncertainty.

5. Network now with the future in mind. Networking is great for business, but there is not always an instant payoff. Network far enough ahead that you have opportunities to cultivate your connections and build relationships.

6. Research community events that could relate to your business. Are there teams you could sponsor?

School events/fairs you could participate in? Local runs/fundraisers you could help with? Getting embedded in your local community can be one of the best long-term things you can do for your business. It builds relationships, brand recognition, brand loyalty and trust.

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Legal

Welcome Laura Liss

to Pillars!

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by Laura Liss and Elizabeth Denham illars of Franchising is excited to announce the addition of franchise attorney Laura Liss to the team. Laura works on both the franchisor and franchisee sides of the legal world and has knowledge that will help our clients and educate our live

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stream viewers. As a regular host on the show, Laura will offer helpful legal tips and an experienced perspective on a variety of topics that relate to franchise law. She is also available to answer callin questions during the broadcast.

Lega I know you work with your father who is a long-time franchise attorney. Was it he who inspired you to become a lawyer?

My parents are both attorneys, and much of my inspiration does come from seeing all of their hard work for clients while growing up!

I love working with entrepreneurs and business owners, and law is a great way to get to do that.

What attracted you to franchise law?

I love working with entrepreneurs and business owners. Franchise law touches on so many different areas (trademark law, corporate law, real estate law, etc.) and that means that no two projects or days are the same. I enjoy the variety!

What is it like working with your father?

My dad is my biggest cheerleader! I am really fortunate to have his support now and even before I joined the firm when I used to live and practice franchise law in Denver.

What do you like to do in your time off?

I enjoy a pretty active lifestyle – long nature walks, time with family, travel, and cooking/baking! The pandemic has given me more time to do almost all of those things, which has been an upside.

What should we be keeping an eye on in terms of potential legislation that could impact franchising?

Periodically some required updates to the Franchise Disclosure Document occur, which is the legal document used to sell franchises, and I believe those

are currently under evaluation.

Separately, more potential regulation that may affect the franchise industry is happening at the employee-employer level, which can make it more costly to be a franchisee (an employer). But it is still a great time to be a franchisee or to franchise an existing, successful business!

When potential franchisees do their due diligence, what are the top three things you think many don’t do enough of?

Most potential franchisees have never had their own business before and so they don’t have the experience to do a thorough budget or know how to forecast revenue. This means that they may not be able to build a strong business plan or feel confident going forward.

Other franchisees are intimidated by taking out a bank loan to finance their business, but an underfunded business is much more likely to fail, and interest rates are still relatively low.

Finally, many new franchisees are inexperienced with social media and don’t realize how many of their customers will find them through these networks. Having great social media is very important! Even if the franchisee doesn’t like or use social media, they need to have someone else in their life who does know it evaluate how the franchise is doing it and see if it is being done well.

What trends are you seeing in your practice regarding franchising?

The biggest trend is the return of new franchise buyers! Many

were scared off by the uncertainty earlier in the pandemic, but now we are working with many clients on reviewing their franchises and starting their companies.

If you were going to buy a franchise, which one would you buy?

I get asked this often! I would probably buy something in the pet-care sector like a doggie daycare franchise. Many people got pets during the pandemic, and even if folks are working from home more, most will resume going to the office a couple days a week at least, creating demand for daycare services; plus animal boarding services will be needed for travel.

What do you enjoy most about working with the crazy Pillars crew?

I enjoy how committed everyone is to franchising and the shared knowledge!

Laura advises on franchise, general commercial, real estate, and trademark transactions and litigation matters, including preparing and reviewing franchise disclosure documents, buying or selling a business, commercial real estate and contractual matters, as well as trademark litigation. Laura previously practiced in Denver, CO. Her involvement in the Denver community includes: Chair, Franchise Subsection of the Colorado Bar Association; Member, Doyle Inn of Court; FY 2017-2018 Trustee and Second Vice Chair, Board of Trustees, Denver Bar Association; -FY 2105-2018 - Executive Committee Member, Denver Bar Association Young Lawyers’ Division. Laura can be reached at Laura@lisslamar.com.

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Features

From the Board to the Mats A Q&A With Hall of Fame Women’s Basketball Coach Sherri Coale

by Elizabeth Denham

S

herri Coale, Hall of Fame Head Coach of the women’s basketball team at the University of Oklahoma for 25 years recently sat down with Kristin Selmeczy and Elizabeth Denham to discuss her new role as Culture Coach with NextGen Fitness. Her leadership and values shine through in her interview, and we know she will bring her best game to her new role.

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Brand Consistency Kristin Selmeczy: Shaquille O’Neal talked about this a little bit at the IFA convention. He noted that he believes the game of basketball and professional sports in general translate well to success in franchising. Is that what brought you to franchising, and how do you think being a coach is going to help you in your role with NextGen Fitness?

Sherri Coale: I want to make sure that as they franchise their organization, the authenticity of the brand remained true. That the same look and feel, branding and operations – that the brand is consistent wherever a next-gen fitness studio exists. Their concern is with how to do that as it spreads in so many different directions, and this led them to me to discuss how to build a team, how to be clear and how to develop a sense of individuality while promoting the authenticity of the foundation of the brand.

No matter what entity you are creating, it’s about how people.

It’s about how human behavior works and then how humans work together to achieve the desired goal. So, it doesn’t really matter if you’re on a football field or basketball court or in a board room or in a warehouse. If you take a look at a brand, it can allow people to be their authentic self

and bring what they have to offer to the table while honoring the brand.

There has to be a very clear alignment with the values. That’s where my job comes in - reinforcing that culture and creating a set of expectations that everybody decides to live by. We have a saying that as the water rises so do the boats. So every studio is striving to become the best it can be.

Team building Elizabeth Denham: Sherri, you mentioned something about the commonsense things you do for team building in basketball that you are surprised you don’t always see in the business world.

As a leader of a team who developed a strong culture at Oklahoma, what do you think your strengths are in creating a healthy culture at NextGen?

SC: First and foremost is the fact that everybody is so distinct and unique in their own ways. We all face similar challenges. But no two people are alike, and so when looking at a room full of very distinct individuals and personalities you have to find a way to appeal not only to their desires but to their needs. At the same time, you have to understand how important it is for everyone to be heard, for everyone to have a piece of ownership and to understand their role. It takes clarity of expectations and roles. And then the way you bind those people together, that is how you get extra miles out of them. We want them to run beyond the tape past the finish line and keep going. That only happens is if they feel like they’re invested and have ownership. They need to love the person to their right and love the person to their left -- that’s when you start to get extraordinary results.

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their goals, so it’s very service-oriented. Also, it is personalized, so you can help people reach different goals from relieving stress to losing weight to getting more fit or warding off injury.

We are still determining individual training and small classes and what they look like. We are literally making the path by walking it.

KS: What is your goal as the cultural officer to be able to translate that culture from a franchise owner into picking the right team and how do you train those franchisees?

The goal is to build an environment where people can do their best work. When you do that, then the culture becomes contagious. I love letting everybody shine in their own light and then making sure that everyone has mutual respect for each other.

This is how I see the culture for NextGen Fitness.

NextGen Fitness Culture and Celebrating Failure KS: So, tell us a little bit about the NextGen model and what makes you so excited about it.

SC: I think it is appealing first and foremost because of their expectation of excellence in everything they do. There is an emphasis on relationships with their clients and

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on training the person, not just the body which is very holistic.

Also, the only way we reach our goals is by helping clients reach

SC: I think as you as you identify a group of interested people, the most important thing that we’ve talked about in the last couple of weeks has been the fact that you can’t always control everything.

What we can control is who and how we are at all times. So, we continue to model behavior. If I want my employees to do some-

thing, then I must do that as an example. We continue to grow ourselves and our willingness to be what we want those employees to be. Maybe you hire someone that might appear to be a level C employee when you choose them, but the only way you stretch yourself and reach other heights is to reach higher.

You can fall on your face and then get back up and do it again. So, we would celebrate it. We used to sometimes take some athletic tape and go put an X on the floor when somebody missed a wide-open shot or did something wrong, and then we would clap about it and go “right here’s where it happened because next time you’re going to get it!”

us was accustomed to that at all.

But I’m watching them now. I sit back like a proud mama watching her children saying, “look who you have become,” because they just continued to show back up. They would lose, and they wouldn’t run and hide. They just show back up and that’s what we want our workforce to do.

You must be willing to guide someone who’s maybe not quite ready and groom them. You have to let them grow a bit. As leaders we have to be a little bit patient and remember that sometimes we might be the only example of what we’re looking for looks like.

You can’t punish a potential employee for what they don’t know.

You have to provide that for them and then hold the expectation high but support them as they will fail. If they’re trying to do something significant, they’re going to fail. Support them through that and redirect them.

SC: Well, you know I think I’ve always felt this way about coaching whether it was at the high school level or then for 25 years at the Division I level. It’s not who you are, it’s what you do when you’re

KS: Predominantly sports has been run by males, and now you’re stepping into franchising where females are underrepresented. We are making great strides, but what are some of the things that you intend on doing to help promote and grow women in not just sports but also in franchising.

involved in a leadership position.

As a woman you are showing other women what is possible. When you’re involved in in a franchise, you’re showing other people that you can do this, too. I just have this strong belief that we’re meant to work together. I always had a male on my staff because I loved that he would see it one way, and I would see it another, and together we could see it kind of all the way around.

I have this framed saying in my kitchen that says “God speaks to us each differently and expects us to tell each other.” I really believe that is true and that we use our special way of seeing things as females, and we share that with those around us. And males do the same and we make this tremendous team built on mutual respect.

I’m watching two seniors right now who are playing at Oklahoma. I retired last spring, and they came in as freshmen. They were potentially really good players but not ready for basketball at the highest possible level. They failed a lot, and we lost a lot. None of

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About Sherri Coale Sherri Coale is a native Oklahoman. She grew up about thirty miles to the right side of the Red River in a small rural town where she fell in love with reading, writing, and basketball, not necessarily in that order. In 1987 after a highly successful collegiate career at Oklahoma Christian, she hung up her high tops, moving from the court to the sideline as she began what would become a Hall of Fame career as a Women’s Basketball Coach.

For 25 years, Sherri Coale served as the head women’s basketball coach at the University of Oklahoma where she is the winningest coach in OU history. She built a powerhouse program in Norman that appeared in 19 straight NCAA tournaments and competed in three Final Fours.

Sherri Coale is a member of the Women’s Basketball Hall of Fame, the Oklahoma Sports Hall of Fame, the Oklahoma Women’s Hall of Fame, the Oklahoma Christian Hall of Fame, the Norman High School Wall of Fame.

During her illustrious career at the University of Oklahoma, in addition to coaching the Sooners, Coale participated in USA Basketball as an assistant coach in 2001 where the squad won a bronze medal, and a head coach in the World University Games in 2013 where her USA squad defeated Russia on their home court to bring home the gold. In addition to competitive excellence inside the lines both nationally and internationally, Sherri Coale has received numerous accolades

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and recognitions for her players’ performance academically as well as their team community service through the years. Maximizing her players’ skills both on and off the court has always been her goal.

Sherri Coale is a master motivator, an engaging speaker, a gifted writer, and a keen observer of everyday life. Her newest adventure is as Culture Coach of NextGen Fitness where she will help this emerging franchise grow a

culture to find the right franchisee and build a successful franchise system.

She and her husband, Dane, have been married for 34 years. They have two children, one daughterin-law, and one adorable granddaughter around which their universe currently spins.

To learn more about NextGen Fitness, visit: www.nexgenfitness.com

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Leadership

Back to the Familiar

A

by David Kajganich bout a year ago, my niece mentioned a franchise business that she thought was an exciting opportunity.

I helped her and her husband explore the idea. It is a new franchise and a relatively new concept. After the initial conversations, the idea must have just faded away, because they never pursued it.

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Recently, I struck up a conversation with a random guy while relaxing at a pool, 1,000 miles away from home. Coincidentally, I find out the guy is the CEO of the franchise my niece was excited about. Turns out, the franchise concept is taking off and is growing rapidly due to its successful units.

I texted the coincidence to my niece and congratulated her for having great instincts.

Lea I also included that having great instincts in identifying an opportunity is a great quality…and it is step one. I included that the next step…actually doing something about it…is the difficult step that most people don’t take.

Taking the first step in 1991 to explore buying a franchise was exciting. It was exactly my vision.

It’s what I wanted to do. I didn’t hesitate. I sent for the information and proceeded to do whatever it took to get open. It was only then that I found out that we would be the very first franchisees! Some mixed feelings on that, but we pressed on and after 28 years, we recently sold our units.

A few months later, I was on the trail of finding another franchise.

This time, I had certain criteria it had to meet. After all the searching and due diligence, I signed with The Joint Chiropractic in August. Just like that…everything that is needed to start a business was again back on my plate. Sure, it is a completely different industry, but the mindset and the steps are the same.

As we get closer to the opening, the challenges are there. They always are. They never go away.

One thing that always makes it easier, is that in a franchise, there are so many resources you can rely upon for help. So many areas of the business have been made easier.

However, that doesn’t mean it is easy. We went through the site

selection, the lease negotiations, the architectural process, the permitting process, the bidding of contractors, etc. Nothing was as smooth as one would want. Especially, finding the contractors. The result is that we are at least two months behind when we initially thought we would open.

It will test your mettle, courage, belief and your patience, but as they say, ‘stuff happens’ to everyone. And I am better equipped to deal with it this time around, having that previous experience behind me.

That means we are already paying rent on a space that is still under construction. That happens, so I advise to always plan on paying rent before you open your doors.

I would love to state in this article the date we are going to open.

However, that would mean that the construction is done, and we actually have the staff in place.

Whoops! The construction, while making great progress, is in that familiar stage of drywall and masonry dust, smell of paint, delivery boxes stacked out of the way and brown paper on the windows. The sign of progress!

The construction will be completed soon. We will eventually staff the location with great people and high performers. Will it happen exactly in the time frame I wish? Probably not. We will open when we are ready to open. And we will be successful. And years from now, we will not look back on the delays as a deterrent to our success.

Yep, this is awfully familiar. Our first business was delayed four months. We ran out of money in the process and still made it over 28 years.

David Kajganich is one of Pillars of Franchising’s Million Dollar Mentors. He began his career in franchising in 1992 when he became the first franchisee for Buffalo Wild Wings. Within the first year, he reached more than one million dollars in revenue, and for nearly three decades, he successfully ran multiple units until he sold the business in 2020. David was also involved as an area director for a quick service sub sandwich concept as well as for a fitness franchise. Through his experiences, he honed his skills in the areas of leadership, performance coaching, influence and persuasion to help franchise owners get the most out of their managers and employees. He is currently a performance coach through his business, Eagle Status Performance, LLC. You can reach David at david@davidkajganich.com.

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Finance

Maintaining Your

Financial Plan

A

by Michael Ianuzzi

s the spring season approaches, many people start compiling housekeeping to-do lists, which might include things such as power washing, sprinkler installations, HVAC tune-ups, junk removal, and painting. (By the way, all of these to-dos could be serviced by a franchised brand.) The same type of housekeeping list could be used by franchisors and franchisees when it comes to looking at their business and making sure both the business and their finances are on track. Here are some useful tips to help you plan:

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Fina If you’ve previously created a business plan to obtain SBA financing or a loan, revisit that business plan, compare it to where the business stands today, and ask yourself the following questions: • • •

•

Are your actual results trending to what your plan said?

Are your revenues in line with what was projected?

How are your expenses tracking?

Did you update your budgets, compare them to actual results, and identify and investigate large variances?

Have you looked at your expansion plans lately?

As a Franchisor, ask yourself: • • •

• • •

What territories are you currently selling in?

Are the franchisees profitable?

Are you consulting with the franchisees and providing them meaningful benchmarking data?

Are franchisees validating your system?

Are you planning for the next phase of your business?

Are you ready for a private equity investment?

As a Franchisee, ask yourself: •

•

•

• •

•

other franchisees in the system?

Are you speaking to other franchisees and asking them how they are doing and what are some best practices they can share?

How involved are you in your community? Do you sponsor any sports teams, do people know that you are there, are you a member of any networking groups to build your business?

Is it time for another unit/territory?

If you have any debt, did you evaluate your overall debt portfolio to make sure it is structured correctly for your future goals and plans?

Before interest rates start to rise further, did you look into refinancing debt or take out a line of credit to hold for future use?

Keeping your business financially sound and maintaining your business plan is key to your financial future and success. Leaving things to the last minute or not properly planning for the next phase of your business can hurt you in the long run. Proper planning, strategic thinking, and having sound internal financial data in order to make timely decisions are some of the keys to success.

How are your unit economics tracking? Do they line up with

“Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure.

Citrin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited (MGNL).

miannuzzi@citrincooperman.com

Michael Iannuzzi is a partner and co-leader of the firm’s franchise practice providing audit and accounting, business consulting and advisory, and tax planning services to a wide spectrum of franchise related businesses. Michael works with franchisors and multi-unit franchisees in a variety of industries, including, but not limited to, fitness and athletic centers, children entertainment centers, junk removal companies, mobile concepts, Quick Service Restaurants (QSRs), and grocery stores.

Links – Franchise Website Link - https:// www.citrincooperman.com/industries/franchising Social Media: Michael Iannuzzi - https://www. linkedin.com/in/michael13/ Citrin Cooperman: https://www.linkedin.com/company/ citrin-cooperman/ https://twitter.com/citrincooperman https://www.facebook.com/Citrin.

Cooperman.CPAs/ https://www.instagram.com/citrincooperman/

April/May 2022

23

Marketing

How to Make the Most

of Marketing Your Seasonal Business

I

by Michele Rempel

was speaking with a woman last week whose beach town business earns the majority of its revenue in four to five exhausting months. We talked about the challenges

24 Pillars of Franchising

of managing a large influx of customers and projects in a short time frame as well as staying top of mind during the slow and super slow months.

Mar Does your business also rely on seasonal customers? If you own an ice cream shop, a mosquito abatement company or a tax office, your marketing schedule, strategies and tactics may be quite different from businesses that have a steadier steam of revenue.

Keeping your business “top of mind” during the off-season can be daunting.

Here are some ideas to consider to keep customers engaged (and maybe even buying) all year long.

Ask for reviews. Build up those Google review numbers especially. Contact your past customers and ask them for feedback as well as provide them with links to leave an online review. Tip: Do this in batches. Flooding Google, Facebook or Yelp with reviews will usually cause them to filter out some of the reviews, so ask a handful of customers every couple of weeks. It’s more labor-intensive, but you’ll get better results.

Partner up with other local businesses. If your business is in a touristy area, for example, organize a breakfast where you get together to discuss how others deal with seasonality. Or, talk about ways that you can promote your area during the off-season.

Business owners often get isolated and stay in a bubble. Consider learning from others and lifting each other up.

Offer early payment specials.

Not every business can do this, but if you can, it might be a good idea to offer a discount to reward people who want to reserve or pay early (depends on your business type, of course). Even if someone doesn’t take you up on the offer, it’s still valuable content that will help people remember you are an option in the upcoming season.

Upsell to existing customers.

Offer your past customers a special package for the upcoming season, or let them know about products and services to get them ready for when they visit or use your services next.

Celebrate the locals. If you’re in a tourist town, hold a big sale for the locals to show appreciation and thin out last season’s merchandise. They will most likely enjoy the savings without wading through the in-season crowds.

“

•

Keeping your business “top of mind” during the off-season can be daunting.

Not currently collecting customer data? Time to set up a system for the upcoming season! Set up a QR code at the register and/or send it with your reps. Link the QR code to your CRM as well as your Facebook and Instagram accounts. Let customers know that if they share their email address, they’ll receive benefits such as discounts and other perks. And then do it.

April/May 2022

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Mar

Create a contest or giveaway.

Allow the winner(s) to claim the prize either immediately (if it can be shipped or delivered) or during the regular season. This can also be a great way to collect email addresses and ask for them to “opt-in” to your future communications. Share the contest on social media. Videos work especially well to create buzz around a giveaway, especially Instagram Reels.

Provide some education. Do you often get the same questions from customers or clients? Make up a series of posts or emails or

postcards that address some of these common questions. Another option would be to hold online seminars and set up your business or a key person on your staff to become a thought leader in your industry.

Use the slower time to find out what your customers want. Consider conducting a survey to find out what other products or services your customers might want.

Are you missing out on an opportunity to provide something you haven’t before?

Create your marketing plan for the coming season. Use the down-time to look at your website (if you have control over it) and make sure the information is up-to-date and accurate. Take a fresh look at your competition or other businesses in the same space. What are they doing on social media? Consider consulting with a marketing expert or company to find opportunities to market during the slow and busy times.

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26 Pillars of Franchising

Michele Rempel is the founder and managing partner of Westvyne, a marketing and website design firm based in California and Illinois. For almost a decade, she and her team have been guiding their clients in what to say, how to say it, where to say it, and who to say it to in order to attract and retain customers. For more infor- mation about Westvyne, visit www.westvyne.com.

rketi April/May 2022

27

Legal

The History of Franchising

in the United States

by Harold Kestenbaum

Y

ou might assume that franchising in the United States is a relatively new thing. Actually, it’s pretty mature, though there is some debate about who the first franchisor was.

Sewing, Hair, and Books. Oh My! Here’s where records get murky: there are at least three possible first franchises in the US. Let’s work backwards.

28 Pillars of Franchising

Martha Matilda Harper, an entrepreneur who ran a salon business, franchised her first salon in 1891.

She then developed franchise systems that you would recognize today. She provided franchisees with training, branded products, and training, and grew the system to over 500 salons and training schools.

But slightly before that, Albert Singer, who had had difficulty marketing sewing machines, found success in franchising as a way to sell his machines in the 1860s. He is credited as having been the first to develop a franchise contract.

But even further back, we have a familiar name: Benjamin Franklin.

In addition to inventing many common items like bifocal glasses and the odometer, he also created what was the first documented franchise, though it was called a “co-partnership,” in 1731 in Philadelphia. (Okay, technically we weren’t the United States of America yet, but it still counts!)

He entered into that arrangement with Thomas Whitmarsh to print many of Franklin’s writings, including the Poor Richard’s Almanac, and Whitmarsh was required to buy his printing materials from Franklin.

Fast Forward to Fast Food Franchising grew more fashionable in the mid-1900s in the US when a new type of franchise popped up in the form of retail

“

We’ve come a long way!

and fast-food chains. Both the Baby Boom and families’ move to the suburbs at the time created the need for fast food and retail chains to develop in more remote areas outside of cities, thus creating the need for franchising these types of businesses.

In 1919, Roy Allen opened his first root beer stand in Lodi, California, and just two years later, began franchising as A&W Root Beer.

By the 1960s, the franchising industry was booming. Everything from auto supplies to hotels, convenience stores, and plumbing, was being franchised. But this explosion also created problems, and franchising gained a bad reputation. Many franchises sprouted up that were less than scrupulous and were under-funded. Many of these franchise systems went into bankruptcy, leaving their franchisees with large investments and no business to show for that investment. As a result of these practices, investing in a franchise was considered a speculative investment.

More Regulations Means Better Balance for Franchisors and Franchisees The good that came out of the problems in the 1960s and ‘70s is that franchise regulations really became established. Modern franchise laws developed and the regulations governing franchis-

ing, both federal and state, were promoted. Franchising became a highly regulated area of law requiring franchisors to provide a disclosure document (originally the Uniform Offering Circular and now the Franchise Disclosure Document) to prospective franchisees.

Today, these regulations are upheld, and franchisees have recourse if they feel a franchisor isn’t living up to its end of the bargain. We’ve come a long way!

Harold L. Kestenbaum joined Spadea Lignana in 2019, having unrivaled experience in the franchise industry and in franchise law. He founded and served as President and Chairman of the Board of FranchiseIt Corporation.

Harold also authored the first book dedicated to the entrepreneur who wants to franchise called “So You Want to Franchise Your Business.” Contact Harold at hkestenbaum@spadealaw.com or call at 215.774.3365 x136.

April/May 2022

29

Education

Spring Cleaning

the Mental Clutter

by Susan Scotts

Self-Limiting Beliefs This spring, as you are focused on “spring cleaning” your home, office, or personal spaces, how about doing some cleaning in your own mental space?

It’s important to clear out some of the mental clutter and limit-

30 Pillars of Franchising

ing self-beliefs that we all have.

Spring is a great time to take inventory of limiting thoughts that may be holding you back. When starting the process, it is important for you--first and foremost--to believe in yourself before anyone else can. How can you expect to succeed if you set yourself up for failure before you even begin?

Do you ever find yourself -- or observe others in your life like friends, family members, or even spouses--knocking your belief in yourself, your talents and skills needed to be successful? Sometimes you (or those you love) can be your worst enemy. They love you and mean well, but the result is emphasis on why you won’t

Edu succeed in making changes you want in your life.

Those negative self-beliefs may not be your own fault. Past experiences stick with all of us from childhood, from parents, teachers, neighbors, even schoolmates, knocking you down and making you believe you aren’t good enough to succeed, and definitely not smart enough to do something like owning your own business (a dream of many people).

Are You Worthy?

Externally we all want to be successful, but your internal question is “do you really believe you deserve it -- that you are worthy?”

If not, it is time right now, as you are preparing your space for spring, to change that thinking as well. After all , it is just a limiting thought. Deep down, most people feel not worthy enough, not good enough, not smart enough.

“

By releasing those limiting beliefs and thoughts (remember you control your thoughts!), you open yourself to receiving the good you deserve.

Believe in Yourself

The starting point of all abundance is the development of a prosperity consciousness - to believe in yourself without a shadow of a doubt. And belief always comes from within Your past is just that, it is past, leave it there; let it go.

best. And I am worthy of reaching my goals and desires,” said out loud, several times a day with conviction may feel strange at first (we are so accustomed to negative thoughts and messages!). I like to suggest people look themselves in the eye in the mirror and say them UNTIL they BELIEVE THEM, Feel in your body the emotional realization that you do deserve abundance. You are worth it. After all, if you don’t believe in yourself, how can you expect others to? If you don’t hold yourself in the highest regard, how can you expect others to?

Your past does not define you and has no hold over you unless you let it run your life. In the NOW, you must be willing to forgive and love yourself, and BELIEVE IT. Using positive affirmations can be a very helpful way to reprogram the thousands of negative messages you receive daily.

Affirming statements, such as “I am a good person; I deserve the

Spring is a great time to take inventory of limiting thoughts that may be holding you back.

Susan Scotts is a multiple award winning career transition coach with The Entrepreneur’s Source® and possesses three decades of experience in helping empower individuals to become entrepreneurs through franchise business ownership. For a complimentary consultation, she can be reached at 561-859-9110 or SScotts@EsourceCoach.com.

April/May 2022

31

Business Tools

“Labor” is Not a Dirty Word.

Getting Back to the Basics of Staffing.

by Karen Kimsey-Sward

T

he Great Resignation. Quitter’s Market. Hiring Crisis.

Across the country, franchisees and small business owners in every industry, at every stage of growth, curse these phrases as they face a common challenge: Labor.

32 Pillars of Franchising

managers and systems in place needed to support my company culture?”

Exceptional employees seek exceptional workplace culture.

Mastering the basics will draw the right candidates to your business, and it prepares you to accurately judge if they are, in fact, a good fit for your team. What does this look like?

•

•

• Last year, a record-breaking 3.98 million-plus workers quit their jobs on average each month.

These numbers are staggering, and as the U.S. economy faces a 15-year labor shortage, they seem insurmountable.

them the right tools to do the job well. The best leaders build teams—and keep them—by consistently focusing on the fundamentals of their business.

•

Get Back to The Basics

•

They aren’t.

The primary key to attracting and hiring top candidates is simple: master the basics. First and foremost, know your values and what factors are important to you as a team member. Second, stop and ask yourself, “Do I have the right

Building an effective team is not about how many spots you can fill to get the job done. Rather, it’s about attracting the right workers to the right roles and offering

You aren’t hiring warm bodies. You understand that one toxic person can damage your reputation and drive other employees away.

You look at both skill and EQ. An employee must exhibit a high degree of emotional intelligence to work well with others and contribute to a winning team.

You structure the interview process so that you talk less about your values and ask more questions about theirs.

You incentivize existing, happy employees to bring in new employees (and it doesn’t always have to be with money).

You involve your high performing employees in the interview process.

Go Beyond the Resume A structured hiring strategy goes beyond reading a resume and asking a candidate, “What is your best skillset?” in an interview.

April/May 2022

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Busi “

The best leaders build teams—and keep them—by consistently focusing on the fundamentals of their business.

Resumes can be deceiving, and prior experience only indicates a person held a position on a team, not that they were a team player.

you also must make sure you are getting to know the interviewees.

You can do both at the same time.

Instead of evaluating on experience and skill alone, effective leaders utilize behavioral interviewing to lead candidates to paint word pictures of who they are as people and workers. Behavioral interviewing requires you to ask the right questions and not only hear and analyze the verbal answers, but also watch for physical cues. How do they interact with you? Do they look you in the eye?

Assessing For the Best

Great behavioral questions reveal far more telling answers about character traits, strengths and weaknesses and work ethic. Asking, “Are you good at handling conflict?” can garner a “Yeah, I’m great!” Whereas asking, “Walk me through a time you faced conflict and how you handled it,” forces someone to describe an actual situation which may arise with your team. People tend to replicate past behavior.

When interviewing many applicants, you must execute a quick turnaround and clear process, but

34 Pillars of Franchising

Your company culture is a calling card to quality candidates, and you are employing behavioral interviewing to determine fit. But other tools exist to help you find the right people for the right roles in your small business.

Utilizing personality assessments in conjunction with an interview allows you to objectively assess job candidates and reduce bias, removing emotion from the final hiring decision. These tests can identify traits from persuasiveness and proneness to boredom to detail orientation and more.

They also give hiring managers a behind-the-curtain look into the emotional intelligence and self-awareness of the applicant.

This information is invaluable in determining culture fit.

This brings us full circle, back to the basics. You’ve found the right fit and they’ve bought into what you’re selling. You’ve now made them a promise you have to keep.

Providing your team members with the support systems and leaders they deserve from day one, minute one is essential. We work hard to gain employees, but we should work even harder to keep them.

Karen Kimsey-Sward has over 25 years working with business owners and franchisees helping them move to the “next level” of performance. She has experience as a business owner who has been through all stages of a company’s life; from its founding through the various stages of growth. She has also been on the franchisor side as a VP of Franchising. Karen is currently COO of Dale Carnegie Chicago. Karen can be reached at 630-640-0339.

i

TRAINING THE NEXT FRANCHISE GENERATION T H E TI TUS C ENT ER FOR F RANC H I SI NG AT PAL M BE AC H AT LA NTI C U NIV E RS ITY OF F E RS A C O N CENTRATION IN F RANC HIS ING. The Center’s distinctive features include: •

Four college courses with a franchise internship that lead to a Concentration in Franchising

•

Franchise professionals who visit campus frequently to speak with students

•

A 60-member Advisory Board that provides ongoing student coaching

•

Scholarships specifically dedicated to franchising students

•

The Kobel Challenge, which provides substantial funds to help graduates buy franchises

LEAR N M O R E :

TitusCenterforFranchising.com

LEFT: DAVID WILD, DIRECTOR OF FRANCHISING, SLOAN’S ICE CREAM RIGHT: MICHAEL SCALIA, FRANCHISING INTERN

April/May 2022

35

Customer Service

3 Year-Round Common-Sense

Tips (that are not so common)

I

by Nancy Friedman

f it is all ‘just common sense,’ ever wonder how come it’s not so common? As long as I have been giving customer service training, it is still surprising how many service representatives don’t “just know” some of the common practices to help their service shine! And since the telephone remains the original ‘social media,’ we have a handful of tips in the ‘common sense’ column that are frequently forgotten for phone etiquette. There are more, but these will get the boat off the dock. Enjoy!

36 Pillars of Franchising

1. Answering a Business Call; The 3-Part Greeting Well, what is so difficult about that? It’s done every day. Right.

But is it done well? I wager if we called one hundred organizations, we would get a countless number of ways that the phone is answered. And that is within the same company. Some good, some not so good.

At Telephone Doctor, we believe there should be one uniformed method of a greeting to answer a business call. Consistency counts!

•

Buffer Words – Buffer words welcome the caller such as, “Thanks for calling” or even “Good morning, (afternoon or evening.)” However, “Thanks for calling” is good for elimi-

“

April/May 2022

37

Cust • •

nating saying the wrong time of day. Stick with “Thanks for calling.”

Then your company name Then YOUR name

“Thanks for calling Telephone Doctor’s office. This is Nancy.”

(Then STOP. Watch the positive results.)

“How can I help you?” after your name is NOT necessary on an initial greeting. You are there to help. That is why you answered the phone. Semi-useless. Two things happen with this common sense tip: • •

It speeds the rapport building process Not having “How can I help you?” after your name, allows the caller to acknowledge you and usually give their name.

2. Thank You for Holding: A forgotten Common Sense Tip! Being put on hold remains one of the top three frustrations of the American public. Thanking a caller when we come back from having them hold is key. And seldom done. Knowing how to put someone on hold is certainly important; however, so is thanking them for holding after you have come back to the phone. Again, a simple, common-sense tip.

Think for a minute though, how

38 Pillars of Franchising

often are you ‘thanked for holding’? Rarely. I am amazed at the number of times I am put on hold and when the person comes back to the phone, they just start in on the conversation like they weren’t even gone. (Like stepping on someone’s toes and not saying ‘excuse me.’) And normally, people are gone longer than they should be. So that “thank you for holding” would sound nice and sure would be appreciated.

3. Monogram the Call

everyone spells their name the same way. Tom, Thom; Christy, Kristy; Charlie, Charley. You get the idea. The list goes on. GET IT RIGHT!

We have many more essential telephone skills to share. However, we know giving too much information at one time is not effective. These 3 common sense tips to maintain great customer service during high (or low) volume times of the year will get you started.

Know the name? Use the name.

Most of us like our name. We want it pronounced right and spelled right. Most people save things with their name or initials on them. Same thing should happen on a phone call. When you know the caller’s name, use it. Do not abuse it (by using it too much); however, do include it throughout the conversation.

And folks want to hear it pronounced properly and spelled right. Do not be afraid to ask the caller the correct pronunciation of their name if you are not sure.

They will appreciate it! It is a heck of a lot better than butchering their name.

Do not assume the spelling of a name. ASK! Are you aware there are 19 separate ways to spell the last name of NICHOLS in the New York phone directory? Not

Nancy Friedman is a popular speaker in the franchise industry and a highly respected customer service expert. Email: Nancyf@telephonedoctor.com. During COVID, call her cell at 314-276-1012 or office: 314-291-1012 (central time) and visit www.nancyfriedman.com.

Need a company Zoom meeting?

Or a 30-minute RX Shot in the Arm for your team? We’d love to share our tips, ideas, skills and techniques with you and your team.

to

PILLARS OF FRANCHISING Looking Forward Coming in June: “Franchising on Fire”

www.PillarsOfFranchising.com April/May 2022

39

Pillars of Women

What’s All This

About “Fun” in Business?

S

by Nancy Chorpenning ome folks may believe that “fun” and business don’t belong in the same sentence.

40 Pillars of Franchising

Pilla “

Some folks may believe that “fun” and business don’t belong in the same sentence.

Not so!

If you’re NOT having fun in your business, you’re doing it wrong.

Don’t misunderstand me. Not everything in running a business is “fun.” But I contend that if you don’t enjoy it, you’re probably not GREAT at doing it. And it makes all the sense in the world to delegate these tasks to someone else, even if it’s a contractor who helps you just a few hours a month.

So that’s Lesson #1. Delegate!

(And that’s WAY different than “abdicating…”)

Catherine Price says in her book “The Power of Fun” that “true fun is the confluence of playfulness, connection, and flow.”

By playfulness she means a spirit of lightheartedness and freedom.

And that’s one of the key reasons most of you found (or are looking for) a franchise to operate.

You can spend more time on the aspects YOU enjoy.

Connection can be either the people you surround yourself

with and/or your physical environment. That may be customers, clients, team members or other owners.

Flow is a biggie. This is a psychological term that describes when you’re fully engrossed in your present experience that you may lose track of time. “Being in the now” is another way to express it. You KNOW when you’ve experienced authentic flow. When I try to envision the sensation, I go back to a time on a sailboat in the Gulf of Mexico, with the sun, breeze, and salt water in my face.

The hum of the hull as it glided along the waves…even now, I get a sense of the remembered feeling.

What is your experience of flow?

And when is the last time that you can remember bringing playfulness and relationship or accompaniment with it?

Focusing on the right priorities that will lead to success and build value is critical for business owners. My specialty is working with women entrepreneurs whose businesses are in building and growth stages.

Then, as they navigate the challenges of scaling, I help prioritize strategy, structure, staffing, practices, systems and processes. CEO School for Women™ is a curated group that includes online learning to enhance business skills, virtual coaching to share and get feedback strategic issues, and offline retreats to regroup, refresh, and renew. Visit www.ceoschoolforwomen.com to learn more.

I believe there are ways to build these sensations into our businesses. It takes awareness and intention and some skills that any one of us can acquire. If only we invest the time and effort to learn.

We are focusing on FUN at our women’s retreat in April at our Mindset Reset at the Beach, if you’d care to join us. www.ceoschools.us/mindset2022

April/May 2022

41

Contact Us

Let us help you grow your brand. Find out how we can target your next franchise owner.

Contact us at YourFuture@PillarsOfFranchising.com

42 Pillars of Franchising

PILLARS OF FRANCHISING The Dream Starts Here!

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Distribution: Social Media – 60,000+ connections Subscribers – 9,000+ Monthly Podcast Downloads – 6,000+

We have our finger on the pulse of franchising.

BECOME A SPONSOR elizabeth@pillarsoffranchising.com April/May 2022

43

Funding

What You Can Do to Set Yourself Up for Success

Pre-Funding Checklist:

S

by Kelly Krueger

o, you’re interested in buying a franchise, but how soon in the process should you look for funding and what can you do to better prepare yourself for the process?

We get asked this question all the time and tell people it’s best to start as early as possible in order to achieve your desired outcome.

All franchisors and lenders have minimum criteria for approving candidates. You may meet one franchisor’s requirements but not another’s. Similarly, you may meet the requirement of a specific franchisor but not a lender. It’s important to do your homework, get your financial house in order, and consider all your funding options.

Here is a quick pre-funding checklist of what you can do to better set yourself up for success: 1. Research your options early. There are numerous funding options, some you might not even be aware of (i.e. ROBS funding, HELOC loans, portfolio loans). Don’t count anything out until you

44 Pillars of Franchising

properly investigate each of them. Be aware that as times change so do trends and the popularity of different options.

Additionally, your situation and background can impact whether you qualify for specific funding programs. Don’t let pre-conceived notions deter you from at least considering all the different funding strategies. And don’t give up until you have exhausted all options!

2. Write a business plan. When you need funding, your business plan is one of the most vital considerations. Funding sources will closely examine how your business will handle cash flow and what revenue projections look like in both the short and long term. While a business plan is certainly important for finding funding, it is also a tool that compels

Fun

you to put together a framework and structure for your business idea.

3. Know your credit score.

Your credit score is viewed as a measure of your financial responsibility. Typically, the higher your score, the better the loan options you’ll receive from lenders. For most SBA and term loans, a credit score of 680 (and up) is what is required. If you don’t meet this threshold, investigate ways you can boost your credit score (For example: catching up on past due accounts, paying down revolving account balances, and consolidating debts).

4. Determine your Liquidity.

Liquidity, or the measure of being able to quickly convert assets into cash, is one of the most important considerations of lenders. Typically, for example, for SBA loans under $150k, borrowers should have the liquidity to be able to put

“

10% equity injection in from their personal savings, checking, marketable securities, some IRAs, or 401(k)s. Then, on the backside, lenders like for a borrower to have at least $50,000 in post-closing liquidity after they put their 10% in and the loan is funded.

5. Calculate your net worth.

This one isn’t as important as liquidity, but nevertheless some franchisors may require a certain net worth. To calculate your net worth, add up all your assets (savings, checking, CDs, annuities, etc.), then subtract all your liabilities (loans, credit card debt, medical bills, etc.).

6. Get pre-qualified! Did you know you can find out how much funding you might qualify for in advance, just like with a home? By getting pre-qualified through a funding provider, you can better identify what you can afford.

Some pre-qualification pro-

It’s important to do your homework, get your financial house in order, and consider all your funding options.

grams are even offered free of charge (visit benetrends.com/ prequalify).

About Benetrends: Benetrends Financial has been funding America’s most popular brands for over 35 years. Our innovative, fast and economical suite of funding solutions is designed to help franchisees secure the capital needed to successfully launch their dreams.

Contact us for a complimentary funding consultation at benetrends.com/funding-consultation or contact Kelly Krueger at benetrends.com/kelly-krueger.

Kelly Krueger is a Senior Consultant at Benetrends Financial with over a decade of franchise and business funding experience. Benetrends has been a leader in the financial services industry for nearly 40 years, helping entrepreneurs understand their funding options and develop smart capitalization strategies. Kelly has a well-rounded, empathetic approach to assisting her clients.

Prior to her position as a Sr. Consultant, Kelly was a Financial Services Professional with Prudential where she earned the following professional licenses: Series 6, Series 63, Life & Health. She also worked as a Pharmaceutical Specialty Sales Professional for near 14 years for both Schering-Plough and Sanofi-Aventis. Contact Kelly at 267.328.1296 or kkrueger@benetrends.com.

April/May 2022

45

Sponsor

The Importance of Online Visibility and Creating a Strong Digital Footprint

A

by Katie Bateman

s the business world has evolved towards an online, virtual system, it is important to be visible in as many places as possible to create exposure and brand awareness. When you do, you must ensure your customers can access information in an easy, friendly and flexible approach.

Whether an individual is looking for services or suppliers, the first place to look is online. Having a large, strong, digital footprint is key to the importance of online visibility.

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What is Online Visibility?

What is online visibility? In a nutshell, online visibility is how visible your website is online. It represents the combination of the amount of search terms your website comes up for, where the website ranks in a search and how likely it is that the website will be clicked on. Keeping track of these metrics ensures your website is seen by more visitors/customers.

A digital footprint is the path of information that individuals share about themselves as they use the internet. Whenever you are online, you are leaving a digital footprint in all the activities you do, including sharing, posting and visiting websites.

Digital Footprints There are different types of digital footprints: passive and active.

A passive digital footprint is sharing data involuntarily i.e. when you visit a website and the website logs your IP address which provides your location.

If you allow a website to install cookies, this information can be shared with the site and allows the website to track your online path and target you for advertising. The other type is active digital footprint, which is everything from signing up to newsletters or mailing lists to completing purchases, creating online accounts i.e. anywhere you are actively placing your information.

business name in different search engines and look over the results on the pages that come up. This will allow you to assess how much information is out there, how accessible it is, and whether the information is positive or negative. In addition, Google has a feature that is called Google Alert to provide your business a notification whenever you get mentioned online.

The next step is to check your social media accounts; see what information and details are visible to visitors that are not connected to your accounts. There are a number of ways you can change your settings so visitors that are only connected with your social media account can see your information, therefore giving you more control on your social media accounts.

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campaigns and advertising.

Record videos -- they are great sources of information and help to capture customers attention.

Remember quality over quantity. The quality of your followers is much better than the number of followers on your social media accounts.

When posting on social media, it’s also great to engage with other people. Make sure you comment on industry related topics or engage with your followers on their posts.

Make your online content searchable and unique so it’s easy for it to be searched.

Use hashtags and post at optimum times These are crucial tools to increase visibility on social media.

Without presence there cannot be visibility, and without visibility your website can no longer be in Google’s index. As a result, only people who know the URL of the website will be able to find the business on their browser, rather than it appearing in search results or in as part of a campaign.

Having a large, strong, digital footprint is key to the importance of online visibility Increasing Your Online Visibility What can be done to improve online visibility for your business?

• • •

Is My Marketing Effort Working?

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So, how can I see my business digital footprint? First, place your

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Start by creating a website.

Blogs are a great way to help with exposure and brand awareness.

Create social media accounts and update these regularly.

Encourage customers to leave reviews via Google reviews or Trust Pilot.

Use marketing tools such as

Having a strong digital footprint is vitally important for your business to help you stand out and establish your brand in the online world. A strong online presence allows you to build your brand awareness and exposure to gain integrity that is needed to appeal to customers, and also allows customers to access information in an easy and flexible way in a global 24/7 world.

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Pillars Bookshelf In each issue we will share book recommendations from the Pillars Team. We love a great business book, and we each have books that have helped us keep on track and have given us new insights. We are interested in knowing what books you are reading. Have a recommendation? Let us know what it is and why it resonated with you at yourdream@pillarsoffranchising.com.

Karen Kimsey-Sward How to Win Friends and Influence People by Dale Carnegie This one, which is no surprise coming from me, is one of the best-selling books of all time. It provides time-tested practical tools for business and personal use. Now, more than ever, we all need to have those key people skills to influence people, collaborate with others and deal with conflict.

Elizabeth Denham Dare to Lead by Brené Brown I joined a workshop about this book, and it was a great tool for becoming a better leader. As a big communicator, I value conversation, vulnerability and understanding where others are coming from in relationships – both business and personal. I feel like Brown offered me permission to continue leading and learning in the way that is my strength – and to do it better.

Laura Liss Dark Horse Achieving Success Through the Pursuit of Fulfillment

by Todd Rose I love this author’s approach of harnessing your individuality and focusing on fulfillment to achieve excellence. Do not be cookie cutter!

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Jerry Akers Good to Great by Jim Collins “Good” is the enemy of “great,” and this book proves it to a fault!

Watching the small changes going on internally in large corporations, changes which we all know take them from “good” to “great,” creates an intuitive leap allowing the reader to imagine the same things happening in their company. While many will dismiss this book because many of the “great” companies used as examples are arguable no longer “great,” I believe that simply reinforces the concept that you cannot remain great if you quit striving for improvement.

Ray Pillar The 21 Irrefutable Laws of Leadership by John Maxwell If you need a book on leadership, this is the one for you! It helped me learn a lot about leading my team, establishing our work dynamic and growing my leadership skills.

Kristin Selmeczy The Gifts of Imperfection

by Brené Brown This book is one of my favorites. It is important to all of us, but to women in particular, that we learn not to try to be all things to all people – especially if we are struggling ourselves.

We need to be kind to ourselves.

When we are, it is much easier to prioritize and find balance and joy in the things we do.

David Kajganich The Entrepreneur Rollercoaster

by Darren Hardy This book will take you through all the ups and downs of someone entering business for the first time.

The Dream Starts Here Pillars is now a full-service consulting firm.

We help you select and buy a franchise, grow it to profitability and make your dreams a reality.

If you are a potential or current franchisee, we can help you with: • • • • •

Finding the right franchise Navigating the purchase process Finding a mentor Building a network Reaching your goals

If you are a franchisor, we can help you with: • • • • •

Attracting new franchisees Marketing your business Lead generation Generating visibility Reaching your goals

YourFuture@PillarsOfFranchising.

www.PillarsOfFranchising.com April/May 2022

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Featured Vendors

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Spadea Lignana Franchise Attorneys Unlike many franchise law firms, we take a balanced approach by representing both franchisees and franchisors (not of the same system of course). By knowing both sides, our franchise attorneys are better able to help our clients navigate difficult issues. We have a deep understanding of the relationship dynamics that underpin all franchise systems. Many of our partners have held senior leadership positions for national franchise brands and some were franchisees themselves.

That experience has proven invaluable in advocating on behalf of clients. We know franchising and we can help. Learn more at www.spadealaw.com

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Telephone Doctor Years back, Nancy Friedman phoned her insurance agent and said, “Cancel all my policies!” She was upset after repeated episodes of poor customer service. So, the agent invited Nancy to teach his staff how to improve their telephone skills. Combining the service techniques pioneered at an earlier start-up business with the presentation skills acquired from a background in professional theatre, Nancy’s customer service training program proved to be extremely popular. Word spread and after a series of Fortune 500 corporations hired her, a company was formed to market these skills and techniques. Nancy began delivering workshops to corporations and associations across North America. Today, ServiceSkills and Telephone Doctor® are both respected brands in the corporate learning space. We’ve helped over 30,000 organizations improve the Customer Satisfaction Scores (CSat) of their Customer Service Reps, Help Desk Staff, Call Center Agents, Tech Support Staff and other team members. Learn more at www.telephonedoctor.com

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Million Dollar Minute

Mentors Talk Pillars, Plans

by Elizabeth Denham

I

n this issue, we are talking all about the seasons of change. Every business goes through ups and downs, evolutions and growth, uncertainty and confidence. This month, we ask our Million Dollar Mentors about how they have made decisions in their businesses, how they have chosen to grow and what they would like in the future.

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This issue is about “Seasons of Change.” As a franchisee, how have you made the decision to expand your portfolio and invest in more locations?

Kristin Selmeczy: My decisions to expand, within Molly Maid, have really been based on the needs of others to sell. My most recent business allows me to help others buy franchises. This will ensure that I can pursue my dream of living where I want while helping others! I can travel and meet with franchisee, franchisors and others within the industry! I’m super excited!

Jerry Akers: Once we discovered that we had a skill level necessary to run one successful location, it was fairly easy to decide to go for more. By leveraging the back office and other global needs for the business, we were able to lower our overall costs per location, keeping more profit for paying down debt and rewarding us for our hard work and risk. We truly believe that once you make the decision to expand you should always have expansion on your mind and do 1/3/5 year plans incorporating expansion through organic and acquisition growth.

Mill and Propelling into the NewYear

Ray Pillar: I am always looking to expand my business. The infrastructure, staff, phones, computers, etc., is currently underutilized.

Ideally, I would purchase contiguous territory to my business but if that were not possible, then I would add additional territories that were not contiguous. I would even consider a separate business that would dovetail into my existing business.

David Kajganich: It came about because of the profitability of the first location. Owning a franchise made it easier to expand because it was just a duplication of operational systems. Of course, running multiple locations is much different than running a single unit. However, implementing systems and processes was made much easier since the operational systems of each unit were already in place.

You are all in different phases of your careers in franchising. What are your plans for transition and how will you or have you known when it is time to pass the business to someone else?

KS: I’ve always said I would retire or move on when I’m no longer having fun! I no longer ask myself what I want to be when I grow up… now it’s just when do I get to go at a slower pace?

JA: With two daughters already working in management roles in the company, it was always the plan to pass the business burdens over to them and gradually give them ownership. COVID accelerated that because they were handling virtually all of the “getting the business restarted after the shutdown duties” and did it so well it became clear they could handle more. They now handle virtually 100% of running the business with our oversight.

DK: After 28 years, we sold our business in September of 2020.

Basically, we were approached with the idea of selling. After much thought, it was the perfect time for us and the buyer. We were kind of stagnating and the buyer had expansion plans. We thought that it was a great opportunity for our employees and their potential for advancement with a larger company.

RP: This is not something you suddenly start thinking about 10 or 20 years down the road. You need to begin thinking about it from the start. That usually begins with delegating authority so your employees can do their job. Begin with the end in mind!

How have you seen your business change over the course of franchise ownership?

KS: I started with one location, and gradually added others.

When my children were smaller, I worked the business at a level I could maintain and still have time to spend volunteering at the kids’ schools and sports. As they became more independent, I hit the accelerator and grew like crazy.

JA: Our business has grown exponentially and with that growth went changing management responsibilities and different ways of doing things. For instance, we can no longer visit every location monthly due to time and distance issues. To that end we expect our kids and mid-level managers to fill in for us. Additionally, we do far more videos for distribution

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to the staff to keep in touch with them. We are now advisors, and I handle legislative issues rather than working in the business

How do your long-term plans for your business align with your long-term plans for your family and lifestyle?

RP: Actually, the business has not changed as much as I have.

As many of the same problems crop up. You have dealt with them before and delegated responsibility to others. You become more relaxed and able to concentrate on what you like to do.

KS: My long-term plans for business, life and lifestyle go hand in hand. By hiring and grooming the right management team, many models allow you to be semi-absentee or absentee in your business so that you can enjoy the lifestyle you want. Pillars will also allow me to do that and live anywhere while still helping others find their own success.

DK: The business has changed 180 degrees. From a bar-based concept where 90% of the transactions were cash, to a casual restaurant where 90% of the transactions are card based. The list is long, but everything from how locations were evaluated to the decor, to the menu. The concept evolved over time and became better with each evolution.

What are your long-term goals for your businesses?

KS: It will be up to the kids whether or not one of them wants it.

If not, I will simply sell it off and move along to the next book in my life!

JA: Continued growth and an accelerating turn over to the next generation.

RP: I will continue to take advantage of opportunities as they come along.

DK: I am looking to duplicate the process with my new venture.

Starting out with one location, the goal is to acquire and add additional locations over the next 5-10 years.

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JA: It will allow us to “retire” to not only normal retirement paths, but for me to be involved in starting/ owning/managing other businesses for my retirement satisfaction.

RP: Continue to take advantage of opportunities, help others find their business path through the Pillars of Franchising show and my travels. I feel comfortable that when I leave this world, my family will have something to rely on that I have created.

DK: This is exactly why I chose this current business. I was looking for a business that I could scale and also be able to operate successfully, without being needed in a hands-on fashion in the location. The criteria I had when I was searching for this business was much different than it was 28 years ago. At that time, I knew it was going to be a hands-on, everyday commitment. The next business had to fit in and protect the lifestyle that we worked so hard to achieve.

What is the best vacation you have ever taken?

KS: St Maarten with the family!

Our first trip convinced us to buy a time share. We’ve been back every year and some years, multiple times! It’s a great place to slow down and enjoy family time!

JA: Seven days to Ireland on a golf trip with friends!

RP: The last one. Sounds corny but when I think about meeting up with old friends, finding new friends and new adventures, I appreciate that because of the wisdom of age I am able to enjoy everything more than ever.

DK: Well...this is an eye-opening question. Probably going to Spring Training many times.

However, we never really took a vacation. Sure, we were able to get away, but it always seemed to include work! I could tell you the worst vacation...taking a two- and three-year-old to Disney World!

Painful experience for someone who hates waiting in lines...and they don’t remember any of it anyway!

If you are interested in franchise ownership, reach out at yourdream@pillarsoffranchising. com

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