Pillars of Franchising magazine - Issue 3 February/March 2022 by Pillars of Franchising

PILLARS OF FRANCHISING

Feb/Mar 2022

WOMEN ARE TAKING FRANCHISING BY STORM Mandy Rowe Elevates TrueREST to Another Level

WNBA Legend

Jackie Stiles Powers into Franchising

Jane Plitt Honors an Uncredited Pioneer in Franchising

Buy a Franchise

Find a Mentor

Create Buzz Feb/Mar 2022

CONTENTS WOMEN TAKING FRANCHISING BY STORM

Feb/Mar 2022

Cover Story Legend Powers into NextGen 8 WNBA Fitness Franchise Departments 4 Letter from the Editor 6

Calendar of Events .

Unique Funding Challenges Tips for Women Entrepreneurs

The Benefits of Leasing vs Buying Equipment

22 24

How to Find the Best Franchise Opportunity Taking the Journey Together

Elis Salamone

Are You Camera Ready for Your Next Zoom Meeting?

Finding the Sweet Spot in Negotiation

Retaining High-Performing Women Leaders

Features 14 Jane Plitt Q&A for Pillars of Franchising

Women Mentoring Women - It’s a Win-Win

Reading the Fine Print of the FDD

Featured Vendor

Your Roadmap for Targeted Marketing

Franchising with Mandy Rowe

One Woman’s Story of Choosing Financial Freedom

Million Dollar Minute

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Tune in Every Thursday! The Pillars of Franchising Show This issue is all about women in franchising, and we have an outstanding team of women representing a variety of experiences in life and life and business, starting with the WNBA legend Jackie Stiles. 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 Contact us at YourFuture@PillarsOfFranchising.com Contributors Katie Bateman Nancy Chorpenning Nancy Friedman RJ Grimshaw Dave Kajganich Harold Kestenbaum Kim Kreamer Kelly Krueger Michele Rempel Susan Scotts Karen Kimsey-Sward

What you will get: • Education • Entertainment • Resources • 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! Feb/Mar 2022

Letter from the Editor

All About

Women

Dear Pillars of Franchising Community: This issue is all about women in franchising. As the number of women in the space continues to grow, we want to acknowledge the opportunity franchising affords to women and families. In our last issue, we featured Dawna Blum who found financial independence for the first time in her life through her Wild Birds Unlimited franchise. In this issue, we feature three amazing women who have made a difference in their own lives and in their franchise systems. As you read this issue, here are some important facts about women in our space. According to the 2013 State of Women-Owned Businesses Report (commissioned by American Express OPEN): More than 8.6 million women-owned businesses generate over $1.3 trillion in revenues and employ nearly 7.8 million people in the United States. Between 1997 and 2013 the number of businesses in the United States increased by 41 percent while the number of women-owned businesses increased by 59 percent, 1.5 times the national average. Women-owned businesses exceed overall sector growth in eight of the 13 most populous industries.

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Women-owned businesses are highly concentrated in health care and social assistance, educational services, other services, administrative support and waste management services. Our cover story this month is about WNBA legend Jackie Stiles whose trailblazing career opened doors for other female athletes. She is stepping into franchising through her NextGen Fitness franchise, and we plan to follow her story as she navigates her new “team.” We also interview Mandy Rowe of TrueREST float spa who has learned from her father and is taking her experience to elevate the business. Her use of social media has gained the business quite a following, and she is definitely bringing her youth and energy to the business. Jane Plitt, a pioneer in the Women’s Movement herself, brings to us the story of Martha Matilda Harper who is the uncredited founder of the modern retail franchise model. Plitt tells us about Martha and her accomplishments and why it is important to tell the stories of women in history. This issue is packed with must-read articles of some truly amazing women. In addition, our Million Dollar Mentors, Kristin Selmeczy, Jerry Akers, Ray Pillar and David Kajganich share their perspectives on the women in their lives and businesses and their outlooks for the new year. We also have informative 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 welcome Karen Kimsey-Sward as a contributor and we have added Franchise 247 as a sponsor. 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

Feb/Mar 2022

PILLARS OF FRANCHISING February 2022 Click on the event you are interested in to email us for the link to join!

Monday

Tuesday 1

9:30 CT

Wednesday 2

5:30 CT

9:30 CT

9:30 CT Caffeinated Connects – Networking

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Friday 4

4:00 CT Pillars of Franchising Livestream 4:00 CT

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Caffeinated Connects – Networking

Caffeinated Connects So, You Want to Be – Networking an Entrepreneur – Networking

Caffeinated Connects – Networking 14

Thursday

4:00 CT

12:00 CT

Pillars of Franchising So, You’re a FranchiLivestream see. Now What? – Lunch & Learn 23

4:00 CT Pillars of Franchising Livestream

CALENDAR March 2022 Click on the event you are interested in to email us for the link to join!

Monday

Tuesday 1

9:30 CT

Wednesday 2

5:30 CT

Caffeinated Connects So, You Want to Be – Networking an Entrepreneur – Networking 7

9:30 CT

Caffeinated Connects – Networking

9:30 CT

4:00 CT

Pillars of Franchising Livestream

4:00 CT

12:00 CT

Pillars of Franchising So, You’re a FranchiLivestream see. Now What? – Lunch & Learn 23

Caffeinated Connects – Networking 28

Friday

Pillars of Franchising Livestream

Caffeinated Connects – Networking 14

Thursday

4:00 CT

Pillars of Franchising Livestream 30

9:30 CT

4:00 CT

Caffeinated Connects – Networking

Pillars of Franchising Livestream

Feb/Mar 2022

Cover Story

WNBA Legend Powers into

NextGen Fitness Franchise by Elizabeth Denham

ackie Stiles doesn’t do anything halfway. Her unwavering pursuit of excellence in basketball made her a legend in the WNBA, and now, she is attacking franchising with that same focus and drive. “I am relying on the same things that made me successful in my basketball career,” Stiles said. “I know I am resilient. I know I can overcome adversity. And I know if I am willing to work hard and surround myself with good people, I can be successful.”

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As a child, Stiles had big dreams and a killer work ethic. She always knew she wanted to play pro ball, and at the time, that wasn’t even an option as the WNBA didn’t launch until 1996. Add to that, she was an underdog topping out at 5-foot-7 ¾-inches tall, and she came from a small school with only 23 in her graduating class. This was not the formula that would propel most athletes to a legendary status in sports. But Stiles was special – driven, focused and talented. In high school in Claflin, Kansas, she led the country in scoring. She then dominated at Southwest Missouri State breaking records and leading the Lady Bears to the 2001 Final Four. She was selected fourth overall in the WNBA draft by the Portland Fire and went on to win Rookie of the Year her first year. “I was singularly focused during those years, and all I thought about was how to be a better player,” Stiles remembers. “My one constant was that I never missed a workout. If I had to get up at 2:00 a.m. to make a workout, I would.” She was so dedicated, in fact, that when she faced a bout of a rare cancer in 2017, she brought her stationary bike to her hospital room during chemotherapy

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treatments. While this dedication elevated her in the sport, it also took a toll on her body. She endured 13 surgeries in four years and retired in 2006 due to injury. She did some college coaching with stints at Loyola Marymount, Missouri State University and The University of Oklahoma before she made a move to fitness coaching and training.

Brian is now my NextGen rep. When I checked out the franchise, everything aligned. My life is not about success. It is about significance. And the core values of NextGen aligned perfectly with mine – fitness, drive, relationship building, it was all there.”

And then franchising fell into her lap. “It’s funny how opportunities come to you,” Stiles mused. “I learned about NextGen Fitness from Sherri Coale’s daughter, Chandler. Sherri was the Hall of Fame head coach I worked for at Oklahoma, and her daughter was friends with Brian and Hannah Andrews.

My life is not about success. It is about significance. Feb/Mar 2022

Coming Soon! The Jackie Stiles Story, Anything is Possible What: Documentary When: March 1, 2022, 3:30 a.m. & 7:30 p.m. Where: Gillioz Theatre in Springfield, MO Trailer: https://vimeocom/574039558

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Because Stiles says she can’t do anything halfway, she bought two locations – one in Springfield, Missouri and the other in Bentonville, Arkansas. While COVID-19 has slowed down her process to open, she is taking this time to learn, plan and get ready for her next adventure. “I am looking at staffing, and I am excited to surround myself with like-minded people,” she said. “I am looking at younger coaches who are hungry so that I can teach them and help them grow in the franchise. I am excited for

ways I can find to make the biggest impact. Working for Sherri at Oklahoma, I learned more in one year under her than I could have in 10 years of coaching somewhere else. I want to use those lessons and pay them forward.” Stiles believes the franchise model plays into her

strengths and comfort level as a team sport athlete. “I thrive in a structure,” she said. “I don’t like being an island out on my own, so I have enjoyed the idea of building something meaningful with others. And NextGen is the perfect fit.”

Career Achievements • • • • • • • • • • • • • •

Inducted to the Women’s Basketball Hall of Fame June 2016 Inducted to the National High School Hall of Fame July 2015 Inducted to the Missouri State, MVC, Springfield Area, Missouri and Kansas Sports Hall of Fame Named 2001 WNBA All Star/Rookie of the Year Named Verizon Academic All American First Team Named Missouri Valley Conference Player of the Year 1999, 2000, 2001 Named 2001 Missouri Valley Conference Scholar Athlete of the Year Named Associated Press, Kodak, and United States Basketball Writers Association First Team All American Became first NCAA D1 Women’s Player to score 1,000 points in a season (1,062) Won Wade Trophy 2001 Led Southwest Missouri State (now Missouri State) to Final Four 2001 Won the Honda Awards Broderick Cup as the Collegiate Woman Athlete of the Year in 2001 Named Missouri Valley Conference Player of the Century Honored by MVC by naming The Player of the Year Award in the Valley the Jackie Stiles Award

Feb/Mar 2022

Funding

Unique Funding Challenges

AND

Tips for Women Entrepreneurs

by Kelly Krueger

ould you believe that not too long ago, women were not allowed to obtain a business loan in the United States without a male relative co-signor? The Women’s Business Ownership Act of 1988 changed that, thereby allowing women to take out business loans in their own name.

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Would you believe that not too long ago, women were not allowed to obtain a business loan in the United States without a male relative co-signor?

Since then, women-owned businesses have grown exponentially, and now female small business owners are one of the fastest-growing sectors of our economy, according to the Small Business Administration (SBA). However, female entrepreneurs still face many funding challenges and hurdles. For example: •

student loan debt for women, as well as the gender wage gap (latest statistics show women earn 82 cents for every dollar earned by men). •

For women who are able to secure loans, the amount is generally much less, and the terms are not as favorable as those for men.

•

The SBA Office of Advocacy says women are more likely to utilize their own personal savings and credit cards to finance new business, whereas men tend to get financing

Women are less likely than men to secure business loans according to the SBA. Contributing factors include more

through loans. This means women typically start with less capital, which is critical for long-term business success. •

Less than 3% of venture capital funding goes to women-led startups (according to Crunchbase, in 2020 the number actually decreased to 2.3% from 2.8% the prior year).

Despite these challenges, there are several resources and creative funding options available for women.

Funding Tips for Women •

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Register as a woman-owned business. Doing so allows women to take advantage of various programs designed to boost access to funds and opportunities. For instance, a federal contracting program for women-owned businesses aims to create a level playing field and help agencies meet contracting goals.

es to investigate, including government programs, academic institutions and women’s organizations. Here is a list of highlighted programs by the National Women’s Business Council. •

There are many alternative and creative funding opportunities for women. For example, utilizing retirement funds to start a business, either as the sole funding method or as the capital injection for an SBA loan, is becoming more popular with women entrepreneurs.

SBA loan programs are a good option for women business owners. Guaranteed by the federal government, these loans provide competitive rates and fees, lower down payments, flexible overhead requirements and, for some loans, no collateral. Additionally, the SBA zeroed out fees to borrowers on SBA-supported loans under $150,000, which helps traditionally underserved segments of the population like women.

•

Grants and other types of startup business loans for women are also available. There are a variety of resourc-

To learn more about how Benetrends can help your women-owned business, schedule a consultation today.

Women entrepreneurs have come a long way in the past 30 years. While some challenges remain, the good news is there are more funding options for women than ever before, and they continue to grow.

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.

Feb/Mar 2022

Features

Jane Plitt Q&A

for Pillars of Franchising

ou have been on a mission to tell the story of Martha Matilda Harper, who was the true and uncredited pioneer of the modern retail franchise model. Why is this story so important to you? When I and other women became business owners in the 1980s, we felt like pioneers, blazing new paths for both ourselves and for other women. I was shocked to discover that over 100 years before us, women like Martha Matilda Harper had truly blazed new business paths. Harper created the modern retail franchise model with over 500 worldwide shops, yet we businesswomen and society never heard of her because history had buried her accomplishments. Harper’s story, and other path-blazing accomplishments by women, must be acknowledged to assure that we can both learn from women’s brilliance and build on it. Without acknowledging Harper, we falsely credit men like Ray Kroc. While Kroc’s business launch was highly admirable, he did not invent retail franchising.

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Why is it important to reveal the hidden talents of women in history who have not been given credit for their achievements? Without giving women credit for creating the modern retail franchise model (Martha Matilda Harper); for creating the technology allowing the wireless age with Wi-Fi, Bluetooth GPS and cell phones (Hedy Lamarr); for being the first Black millionaire (Madame C. J. Walker); for discovering the DNA structure (Rosalind Franklin); and many more, society falsely identifies men as being achievers and inventors, while women’s contributions are simply forgotten or often credited to men. This reinforces the erroneous stereotype that women are helpers, not leaders. Such historical amnesia perpetuates untruths, undermines women’s self-perception and reduces needed role models for girls to pursue their talents and dreams. The documentary that you wrote and directed about Harper is being released this month and was admitted to the Sarasota Film Festival. What was it like to write and direct your very first film? Honestly, it was joyful. The Marvelous Martha is a documentary brought to life with the precious assemblage of Harper’s historic photos. Giving voice to these characters, imagining what these folks would say about their lives, seemed a perfect way to reach another audience about Harper.

The story also included the tale of how I pieced her story together, giving full credit to the many devoted Harper employees/franchise owners (called Harperites). In addition, I had tremendous help from a wonderful editor, Linda Joffe, and a videographer, Karen Arango. How was Harper able to leverage her connections and relationships to further her business goals? To succeed, Harper brilliantly tapped multiple niches including society ladies, religious affiliates, poor women’s loyalty and the suffrage movement. Both Susan B. Anthony and she lived in Rochester, Ny., and Anthony promoted Harper as a prime example of what women could achieve when

they earned their own money. Harper became identified as a business owner women should support. Society ladies encouraged each other to bring Harper franchise shops to their communities/countries. In fact, it was Bertha Palmer from Chicago, who pushed Harper into expanding, and that is why Harper came up with the franchise model. Christian Science provided Harper with the structural model, and its followers also became loyal Harper customers. Lastly, Harper provided poor women (servants or factory workers) with opportunities to change their lives by joining the Harper enterprise. These ladies became devoted to Harper and literally went wherever she sent them, following Harper’s training and clear dictates around the world.

Feb/Mar 2022

How does Harper’s story translate to women in franchising today? Harper’s achievements provide all franchisers and would-be franchisees with inspiration and practical guidelines about how to succeed. For women, Harper’s story should encourage them to trust their passion, their dreams, and their voices to succeed. For example, Harper believed it was essential to listen to your employees before lecturing them. As a former servant for 25 years, Harper understood how to delight customers, and she reminds us that such fundamentals remain true today as they did in 1891 when she first launched franchising. Harper targeted poor women as franchisees – tell us about the influence she had on social entrepreneurialism as we know it today. Because Harper had been a servant from the time she was seven, she understood society’s limitations for poor women. By providing franchise ownership

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opportunities only to poor women for the first 100 of her franchises, Harper became a social entrepreneur. She used the Harper business as a way to create business for social change by economically empowering these powerless women with money. They then could choose what they did with their lives and whether to marry. As the first executive director of the National Organization for Women and a life-long activist, what is your advice to young women in the business world today? Dare to pursue your dreams against all odds. Be determined and persistent. Use your voice to help yourself and others Recognize the power of sisterhood. Connect. Network. Bring others along!

What is next on the horizon for you? I am taking the Harper documentary on the road and speaking to groups about how to succeed and using business for social change. I am recording my story from labor relations pro, labor arbitrator, feminist, businesswoman and author to visiting scholar.

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

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Franchise professionals who visit campus frequently to speak with students

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A 60-member Advisory Board that provides ongoing student coaching

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Scholarships specifically dedicated to franchising students

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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

Feb/Mar 2022

Financing

The Benefits of Leasing

Buying Equipment

by RJ Grimshaw

easing or buying new equipment is a difficult decision for many businesses. It can be challenging to know which is the best option for your company. Luckily, there are many benefits of leasing equipment rather than buying it that make leasing a strong business solution. For example, with leas-

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ing, businesses can start small and gradually grow into more expensive purchases. You can also lease more than one item at once, so you don’t have to worry about investing in more than you need today. Let’s explore some other benefits of leasing over buying so you can make an informed decision!

The Benefits of Leasing Equipment The benefits of leasing are plentiful. For one, it can be cheaper in the long run. When you lease, you’re not buying the equipment outright. Instead, you’re spreading out the payments over a certain time period. This can be cheaper than purchasing an item that will cost more for the same amount of time. You’ll also avoid paying sales tax on your purchase, which is beneficial if you only need the item for a short time or if you won’t make use of it often enough to justify purchasing it.

Additionally, there are many benefits of leasing when it comes to flexibility. For example, if you lease instead of buy, you can get more equipment later without having to worry about investing in too much, too soon. You don’t have to worry about making major upfront investments either; with leasing, all your payments are spread out over time so they’re easy to manage and more affordable on your budget. And since leases typically last only up to five years (though this may vary depending on your

agreement), you know what you’re getting into and how long it lasts ahead of time – you’ll never have to deal with unexpected expenses. Finally, there’s no risk when leasing because at any point during your lease you can return the equipment for no additional fee or penalty – plus some companies provide their customers with warranties that cover damages or defects for an entire year.

The Benefits of Buying Equipment If you want to make sure you are investing in the right equipment for your company, buying new equipment may be the best decision for you. When considering whether to buy new equipment, there are many benefits. For example, the upfront cost is the greatest investment you will have to make.

Yet, if you plan on keeping your office for a long time, buying new equipment can be a wise investment. Purchasing new equipment means that it is yours to keep and maintain so it’s not something that has to be leased or returned after some period of time. Buying also allows you to have more

control over how your office operates because it is fully customized with your specifications. However, if you are looking for a customized solution without paying the full cost up-front, leasing may be the better option for your company.

conference table, but are working out of a shared office space, you may want to only buy the desk and chair for your shared desk. This

way, if you move to a permanent home with a larger conference table, you will already have the chairs and desk that would fit it.

What is a Hybrid Solution? A hybrid solution is when you lease the equipment you need and purchase the rest. For example, if you have an office space with a large

Feb/Mar 2022

The Benefits of a Hybrid Solution One of the benefits of leasing is that it offers a hybrid solution. Most business owners don’t need to be completely committed to leasing or buying their equipment. With leasing, you can purchase your equipment at the start and then lease it back when you’re done with it. This way, you know that if your company grows, then the equipment will be available for you to use when needed. You can also do the opposite.

•

Lease your items and buy them later on, so you don’t have to worry about purchasing them in one lump sum upfront. If you’re still not sure which solution is best for your business, consider these benefits of leasing over buying: Leasing is more affordable than buying outright

•

Renting gives your business the flexibility to grow without expensive long-term commitments

•

You can lease multiple items at once

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You get all the perks of ownership without actually owning anything

You’ll save money by paying monthly instead of in one large up-front payment (and interest)

Conclusion The benefits of leasing versus buying an item can depend on a number of factors. The cost of the items, the amount of time you need the equipment for and the predicted resale value can all play a role in making a decision between leasing and buying equipment. Some companies may even opt for a hybrid solution to get the benefits of both leasing and buying.

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Leasing an item can be a great way to get items you may need for a short period, such as office furniture, while still being able to get brand new items without having to pay for them upfront. Buying an item is a great way to get equipment that will last years and help build your business in the long run. A hybrid solution is a great way to get the best results from both leasing and buying equipment.

RJ Grimshaw, President & CEO, UniFi Equipment Finance, has previously served on the ELFA’s (Equipment Leasing and Finance Association) Vendor and Captive Business Council Steering Committee, as well participated in the past two Industry Future Councils with the ELFA foundation. RJ is a lifelong student of business, and passionate about helping entrepreneurs succeed. UniFi Equipment Finance is a wholly-owned subsidiary of the Bank of Ann Arbor. RJ joined Bank of Ann Arbor in August 2013 as an Executive Vice President and Chief Sales Officer. With more than 20 years of experience in the equipment finance/ banking industry, he brings valuable experience in the areas of commercial banking, investment banking, and business banking.

Feb/Mar 2022

Sponsor

How to Find the Best Franchise Opportunity by Katie Bateman

ith so many franchising opportunities now on offer, how do you find the one that’s right for you? The number of new franchise opportunities in the industry is increasing all the time, with hundreds of new companies setting up in the sector alone each year. But how can

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you possibly keep track of all these new entrants to the marketplace? Somewhere among them might well be the opportunity you have been looking for, but when there are so many, just how do you find the one that’s right for you?

In the past, the most obvious way to do this has often been at an exhibition. With hundreds of companies, seminars and workshops, they can be a great way to gain an insight into both the latest franchising opportunities, along with advice and support. However, exhibitions are often full of companies that have the backing to be able to afford a presence. They are quite often established players while the smaller start-ups, that may have an exciting and new opportunity that’s perfect for you, have a much more difficult time showcasing their offering. In many cases, the chances of these types of businesses getting any visibility at these large-scale events and being able to demonstrate just how you can become a franchisee are very slim. And don’t forget, it’s not just about there being a level playing field. You need to be able to trust the franchisor and the opportunity. At an exhibition, money can build you an attractive and eye-catching stand, but the best opening for you might well be found at a far simpler stand tucked away at the back of the hall. So just how can you find what you need in this vast and complex arena? We think we have the answer. It’s called FranchiseShow247. com and is a brand new way for you to find what you’re looking for. The franchise marketplace is never going to be an easy one to navigate. So, the requirement for an independent virtual space which allows you to find out what’s available without pressure and genuinely offers the freedom to explore the widest possible range of franchise opportunities, has never been more important. What you need is a guide to help you dig down and pick them out. We think we’ve created just that, and we’d be thrilled if you would take a look www. franchiseshow247.com Katie Bateman Head of Community Engagement FranchiseShow247 Katie.Bateman@franchiseshow247.com

Feb/Mar 2022

Leadership

Taking the Journey

Together by David Kajganich “Are you going to help him? Are you going to work in it, too?” When we went to my parents’ house to tell them that we were going to quit our jobs and open a brand new sports bar franchise (along with asking them to cosign on our loan and using their home as collateral!), those were the first words out of my dad’s mouth.

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Lynn, my wife, had been at her job for over 10 years. It was a good job, just enough to make her feel comfortable and secure. She had a decent salary, benefits and a company car. We were recently married and were about to risk everything we had to do something on our own. “Yes,” was her answer, “We are going to do this together and both plan on being there every

day.” She was sincere then and stayed true to that for the 28 years we owned and operated the business. “I see dreamers like you come through here all the time. You are just a couple of dreamers.” Those were the words from the landlord of a space we were looking to rent and open our sports bar.

We were a little shocked and worked to convince him that we would make it work. Lynn was now more determined than ever and took on a “We aren’t a couple of dreamers, we will show him” attitude. It emboldened both of us. We were determined that we would succeed.

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Of course, it wasn’t always easy. There were many people who made discouraging comments, mostly, without even knowing it – they believed that they were looking out for us. But, when you are making a leap such as this, you must filter out those comments. It doesn’t take much for self-doubt to creep in. Having each other to rely upon and encourage each other was incredibly important at the time.

severe. Of course, it wasn’t easy. There were tense moments. Heck, every marriage has them, let alone working side by side every day. Work stress, home stress — all rolled into one. I’m still amazed at how she handled it all. I think it is just an innate resolve in some women who

have let them affect her. Success is found in the courage, determination, and perseverance to succeed – regardless of how others view you. Believe in yourself. Always.

I see dreamers like you come through here all the time. You are just a couple of dreamers.

“How long have you two been married? You know, couples who own bars never last. They end up breaking up or getting divorced.” Ah…the famous comment from one of our suppliers, after we were open. At this point, we had been married a little over a year and were working every day, basically from open to close. We were pouring our entire souls into it. Now, some guy is telling my wife that we would be getting divorced at some point! It takes strong character to believe enough in yourself to leave a comfortable job, risk everything and go into business… and now…you are faced with the statistics that your new marriage was going to crash and burn! Luckily, Lynn never took that to heart. Again, it was a “we’ll show him” attitude that helped us per-

want to defy the odds. We could scream and yell at each other in the office, and she would walk out and greet everyone as if nothing happened. I did not have that ability. “This is Dave’s wife.” Probably, the only time I would see her disappointed was when we would be introduced as: “This is David, he owns the sports bar, and this is his wife, Lynn.” It was unfair to her. She had as much to do with the success of our business as I did. She worked just as hard, and probably even harder. I believe it was because I handled most of the “business and negotiation” stuff while she spent her time in the daily operation, but it was still a little bit stereotypical. We overcame it and I would do my best to mention that we were both the owners as much as reasonable, but it was ridiculous that she wasn’t acknowledged automatically. Any one of those comments could have stopped her – and consequently us – if she would

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.

Feb/Mar 2022

Finance/Tax

WOMEN MENTORING WOMEN

IT’S A WIN-WIN

by Kimberly Kraemer, Special to Pillars of Franchising

hether you are a beginner or a veteran in the franchising industry, having strong mentors and resources is key to growth and success. When I attended my first Wom-

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en’s Franchise Committee (WFC) meeting at the International Franchise Association (IFA) annual conference in 2018, I immediately knew I had found the support network that I needed. I was seated at a table full of suc-

cessful, inspirational and intelligent women willing to share their insights and knowledge on previous successes and failures, and lessons learned from them.

The WFC is dedicated to inspiring and encouraging women in franchising by creating a network of business professionals who work to strengthen their success. They have created a number of

programs and resources in order to achieve this goal, ranging from “how to” guides and conferences to local networking chapters. As a supplier providing account-

ing and consulting services to the franchise community, I knew this group of women would be an integral part of my growth and success at Citrin Cooperman. While learning about the Women’s Franchise Network (WFN) and the local chapters that exist across the country, I realized there was an opportunity for me to get involved and help grow the New York/New Jersey Chapter. Since becoming co-chair of the NY/NJ Chapter in July of 2018, I have hosted and attended countless webinars and roundtables consisting of men and women sharing their industry expertise and experiences. Learning from them has allowed me to gain useful knowledge to better understand the current franchise environment and needs of my clients. This networking group provides an intimate networking setting with a national reach. To date, the WFN has grown to 16 established local networks, with an additional eight in various stages of development or reorganization. The WFC has evolved over the past few years, expanding their programs and resources to include video interviews and a weekly podcast on Clubhouse. These podcasts include stories of workplace challenges, managing work/life balance, climbing the corporate ladder and the ultimate power of entrepreneurship and franchising. The NY/NJ Chapter, along with many others, takes into consideration the needs and desires of their chapter members when

Feb/Mar 2022

determining topics for events, webinars and roundtables. We started our chapter by surveying our members to determine their interests and what time of day was most convenient for them to attend a meeting. Taking the time to learn the interests of each member has been helpful to ensure high attendance at our meetings. Our past events have included marketing webinars; roundtable

discussions from franchisors, franchisees, and suppliers on current environment best practices (such as dealing with COVID-19); franchise development best practices; and various additional topics. We also mix in lighter events and have had paint and sips at our New York City office, a Zoom event on ‘How to Dress From Zoom to Night,’ and a few charitable events during the holiday season.

As co-chair of the NY/NJ Chapter, I look forward to seeing us continue to grow and gain the most from the various opportunities that continue to arise. Since the beginning, our members have been asking for an in-person wine tasting event – fingers crossed for 2022!

“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).

DigitalEdge OBSESSED WITH YOUR SUCCESS

By UniFi Equipment Finance

Leveraging 39 years of experience implementing finance programs for the partners, UniFi has taken a bold new step in adding ease of use to their process. We are pleased to announce DigitalEdge, a fully digital end-to-end funding program offering franchisees a fast, easy and secure financing experience while offering franchisors a streamedlined process to accelerate development. Digital Edge features DocuSign technology, the global leader in e-signature technology.

RJ Grimshaw CEO, President UniFi Equipment D: 734-794-4250 IM: 315.529.2903 rgrimshaw@teamuniﬁ.com UniFi Equipment Finance, Inc - 3893 Research Park Dr. - Ann Arbor, MI 48108 - T: 800.748.0015 - www.teamunifi.com

28 Pillars of Franchising

Kimberly Kraemer is a director and a senior member of Citrin Cooperman’s Franchise Practice providing audit and accounting, business consulting and advisory, and tax planning services to a wide spectrum of franchise-related businesses. Kimberly works with franchisors and multi-unit franchisees in a variety of industries. She has been co-chair of the NY/NJ Women’s Franchise Network since July 2018. Kimberly is a Certified Public Accountant in the States of New York and New Jersey and a Certified Franchise Executive. She can be reached at https://www. citrincooperman.com/industries/ franchising or https://www.linkedin.com/in/kimberly-kraemercpa-cfe-277b7513/ or by phone at 646.795.5098

Feb/Mar 2022

Legal

Reading the Fine Print

of the FDD

by Harold Kestenbaum

f you have ever gone on an ocean cruise, you likely have a good understanding of which expenses are included in the all-inclusive* advertised price. A firsttime cruiser, however, may define all-inclusive as a place to sleep, food to eat and activities to do, all for the bargain price of $399* per night. Why then, should they bother to find the meaning behind that pesky asterisk listed after the advertised amount due? Surely, it’s a simple Terms of Service disclaimer like any other they’ve seen online.

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The rude awakening comes once onboard when they find out the all-inclusive amount they paid isn’t all-inclusive at all. In fact, it limits the restaurants they can choose to dine in, excludes alcoholic beverages, fails to mention a required housekeeping gratuity, and leaves them out of destination excursions. Had they read the fine print behind the asterisk, they’d have been prepared to make a more educated decision regarding their investment and saved themselves from financial stress sure to cloud some of the sunshine they were after. Reading the fine print gets a bad rap. It’s assumed to be boring, jargoned, not relevant in ordinary cases, or strictly regulated legalese. In the above example, however, the fine print would

have provided necessary details to plan a successful vacation and avoid financial headaches. A good PR campaign for reading the fine print could argue that that’s where you find the good stuff – the crucial information required to make an educated decision. A Closer Look at Items 5, 6 & 7 Items 5, 6 and 7 of a Franchise Disclosure Document (FDD) could be considered the fine print behind the initial franchise investment. On their face they explain the costs to open, but behind each item is a breakdown of each element that combines the total Initial fees, Other fees, and the Estimated Initial Investment. They sound the same, but they are very different. Prospective franchisees should always understand their obligation, as well as what to expect from the franchisor for their investment. The bottom-line of any franchise agreement is difficult to nail down but understanding exactly what fees are expected can be the difference between rough seas and smooth sailing. Let’s take each item one at a time. Item 5 is called the Initial Fee Paid to the Franchisor, or Initial Fee. Despite its title, this fee encompasses more than just the franchise fee. It should disclose all fees that are paid to the franchisor prior to the franchisee opening for business. These could include the cost of goods or services, training charges, or any other fees paid to the franchisor in this initial state of the franchise relationship. Item 6 is called Other Fees. This Item is displayed as a chart and details other fees paid to the fran-

chisor and its affiliates. Examples of Item 6 fees include royalties, local, regional and national advertising fees, service fees, training charges, lease payments if made to the franchisor or an affiliate, transfer and assignment charges, late fees, finance charges, payments for bookkeeping services or assistance with the build-out or furniture, etc. Item 7 is called the Estimated Initial Investment and is also displayed as a chart. It details the likely charges (stated in a range of fees) for various expenditures that a franchisee may incur in the first few months of operating the business. Typical expenses listed include, rent, leasehold improvements, franchise fee, utility charges and deposits, furniture, fixtures and equipment, vehicles (if required), computers, software, insurance, signs, office supplies and equipment, licenses and permits, legal and accounting fees, working capital, etc. A prospective franchisee should take note that the cost of the franchise is really a great deal more than just the up-front franchise fee. Read the fine print. This is not the time to skim or make assumptions. Investing in a franchise is no vacation, it’s a life-altering event. It is critical to learn as much as you can about the franchise, the franchisor, the business itself, and everything that is disclosed in the FDD. A responsible prospective franchisee will read through the entire 23 Items of the FDD, as well as the footnotes to each item

“

and understand them. Reading through the FDD is just one important piece of the due diligence strongly recommended to all prospective franchisees. Take the time to comprehend what is behind the pesky asterisk, the addendums, and the exhibits at the end of the document. Those who do have a better chance of enjoying their journey and will be less likely to find themselves in a position of being forced to abandon ship.

Reading the fine print gets a bad rap.

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.

Feb/Mar 2022

Marketing

Your Roadmap for

Targeted Marketing by Michele Rempel

ave you ever gotten into a conversation with someone at a networking event who said that “everyone” was their ideal customer or client? Maybe you’ve been guilty of claiming that your product or service could be sold to anyone. While in practice this may

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be true (most of us do need some type of insurance, for example), this type of catch-all thinking does not help your marketing efforts. Even if your product or service could be purchased by everyone, there is certainly a group of people who are more likely to buy from you.

Rather than targeting everyone, needs that your product or seryou should focus your marketvice will fulfill. What is the probing efforts on the ideal cuslem they are having that your tomer for your business. Not product or service will solve? only is advertising to everyone Ask the questions they will ask, rarely effective, the practice can or make the complaints that actually hurt your marketing they will make, and you’ll be efforts by annoying people and able to address their concerns wasting your advertising budin your answer (your marketing get. By the way, when you’re at message!) before they occur. a networking event, having a definite idea of your target marConsistency + frequency = ket makes you more memorable and helps others think of 3. List out the ways your possible referrals for you. ideal customer would find you. Does this person check Being targeted is a smart Facebook all the time? Watch approach to your marketing. videos? Read snail mail? Watch Here’s a great roadmap to sports? Do Google searches? identifying your target market: Read the news? The best way to reach your target audience 1. Create a customer profile. What does your ideal customer is via the channels from which they get their information look like in terms of demoalready. graphics? Do they generally fit within a certain age group, Now that you’ve done your income and education level? What are their interests? Where market research and identified your ideal customer, it’s time to do they live? Some people reach out to them. The key is to find it helpful to give this ideal share your marketing messages customer a name and even a background story. If you have a where they are most likely to website and have been collect- receive them. ing visitor data, this might be a good source of information Everyone’s natural inclination is to use social media, but which that you may not have conchannel is appropriate for your sidered. (If you haven’t been target market? If your ideal collecting visitor data, it’s time customer is generally younger to start!) than 30, for example, Facebook may now be a waste of time. 2. Identify your customer’s Remember to refer to your needs. Now that you have a ideal customer profile and the profile of your customer, you most likely places they would need to detail the specific

“

find you based on their demographics and behaviors. Once you determine the best channels to share your marketing messages consistently and frequently, you’ll create a habitual and memorable interaction. In addition to social media, consider trade magazines, networking events, conferences, radio, television, digital advertisvisibility ing, mailers and more. Remember, it often takes seeing a brand several times before someone decides to dip their toes into learning more about what you have to offer. Consistency + frequency = visibility. Here’s to being more visible to your ideal customer!

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 information about Westvyne, visit www.westvyne.com.

Feb/Mar 2022

Education

One Woman’s Story of Choosing

Financial Freedom by Susan Scotts

hile it is true that career ownership through franchising can create an opportunity to fulfill your professional goals and build wealth and equity for your future, there are many other benefits you might not be aware of.

34 Pillars of Franchising

In particular, women franchisees can experience freedom of time through work/life balance so they can live the life they desire by being able to focus on family, enjoy self-sufficiency or simply have time to enjoy life however they choose. A good example is my personal client, Elis Salamone, whose story I’m delighted to share with you.

Elis enlisted in the Army right out of high school looking for adventure and funds for college. This decision led to a successful 27-year military career – one that spanned the entire globe and included a combat tour in Afghanistan and dual service in the Air Force. She retired from the Air Force in 2014 as a Lt. Colonel and nurse practitioner. She beams when she shares that her military career has been her proudest professional achievement to date. After retiring from military service, Elis moved cross country to Washington state for a government job – one she thought was her civilian dream job. What Elis did not realize at the time – but would enthusiastically suggest now – is that she should have taken time some time off after retiring from active duty to reflect and figure out who she was as a civilian professional.

“

Fast forward a few years and a couple more civilian jobs, being laid off and terminated (for no reason!), Elis explains, “I was tired of not being able to control my own schedule or outcomes based on my work. As a multi-faceted professional, I was involved in the community and often did public speaking work and community work that required me to be away from my job, not to mention being there for my son who is unable to drive due to his epilepsy.” Her son, while an adult, has dealt with multiple setbacks due to his epilepsy and has needed a great deal of support, which was challenging when working away

from home. Having the ability to work from home has been a great advantage not only for her son but for Elis. She’s even included her son in the business, giving

The added bonus is I get to do this while having control over my schedule and being rewarded for my work, while making a difference in the lives of others.

The ability to fully control my schedule and how I manage it has been one of the most empowering benefits of career ownership. him the ability to work during the pandemic, which really helped expand her client list. Elis realized that she needed to shift her mindset and consider working for herself. Investing in a franchise was not only a great option, but a journey of self-discovery for Elis. She always thought about business ownership but shared she “never knew where to start.” Once I introduced Elis to franchising and she learned about different possibilities, she knew she had found her next path!

“Career ownership has been a huge learning curve, one with so many rewards. When I get frustrated, I remind myself that I’m

“What I love about TES (The Entrepreneur’s Source) is the ability to do what I love, which is helping others fulfill their potential.

Feb/Mar 2022

still in the baby stages of career ownership.” There is also a great resource in the support team at TES to provide guidance and ongoing training. “The ability to fully control my schedule and how I manage it has been one of the most empowering benefits of career ownership. Recently my mother needed me back East and I was able to block my schedule and take the time off to go visit my family without having to ask for anyone’s approval. It just does not get any better than that.” Elis’ big “why” is helping others, particularly women and minorities, explore possibilities and believe in the power of self-sufficiency. “I truly believe our country and communities will not thrive until there is more diversity in business. Empowering clients and seeing

36 Pillars of Franchising

the mindset shift is the most powerful outcome I can guide my clients through,” Elis said. Elis’ very first client, was a female U.S. Navy veteran from the Caribbean who dreamt of business ownership. This client is now thriving post military career as a business owner and making a difference in her own community. “Controlling my schedule means I can accommodate all the other parts of me, like working on my house, being involved in other ventures, writing and podcasting, traveling the world, spending time with friends and family or simply adding ’take a nap’ or ‘workout’ on my calendar.” She adds, “Business ownership is not for the faint at heart, but if you’re going to hustle and work hard, why not do that for yourself?” By helping others to achieve their dreams, Elis is realizing and

achieving hers. She has professional control over her activities and her time, as well as achieving personal work/life balance that she craved after the military. Now that’s living!

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.

PILLARS OF FRANCHISING Looking Forward Coming in April: “Seasonal Franchise Opportunities”

www.PillarsOfFranchising.com Feb/Mar 2022

Customer Service

Are You Camera Ready

for Your Next Zoom Meeting? by Nancy Friedman

f you’ve been on any Zoomtype meetings over the past 18 months or so, you may have experienced some less-than-professional meetings. Noise. Interruptions. Barking dogs. Crying kids. Are you part of the problem or part of the solution?

38 Pillars of Franchising

I don’t recall getting so many complaints about how people appear and act on Zoom in a very long time, and after taking some time to listen and evaluate, I am not sure we are heading in the right direction. Like it or not, the word is out, virtual meetings are here to stay, no matter how much we

gather in person and onsite. It’s a newfound way to communicate and is well-engrained in the business and social world. Rather than fight it, let’s maintain a measure of decorum. Here are only a few of many guidelines to help improve your conversations on a Zoom, Teams or whatever you use.

Camera Ready Tip #1

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GOOD LIGHTING – UBER important.

SMILE – There are some folks who feel you can’t hear a smile. That’s not true, and there’s also no way to not be smiling on camera and still look good. No way. Everyone can see if you’re smiling or not smiling; and yes, they can even ‘hear’ it. Show me a picture of yourself you don’t like, and I’ll show you a picture where you’re not smiling. Having a difficult situation? You don’t need to have a geek smile on your face; however, you can keep a slight uprise of your mouth. Not smiling makes you look older and it also makes you not look good! No one looks good when they’re not smiling. It’s that simple.

Camera Ready Tip #2

YOU’RE ON TV – You’re on the air! Sit up straight! Don’t slump. No one looks good when they’re slouching or slumping. That’s very unflattering. Keep your hands away from your face. Don’t lean into your face with your palm. Again, very unflattering. And watch some of your nervous habits. We all have them, but often we’re not aware we’re doing them. Some folks play with their hair constantly. Some folks bite v their nails. Others do some really odd things. Camera Ready Tip #3 Be aware. Be aware you can go on Zoom an hour ahead of the meeting and check PRACTICE, PRACTICE, PRACTICE! yourself out. It’s a great idea to do that. – Ahead of time. Practice with a friend Hair ok? Makeup? Background? or a home companion or even by yourself. Leave nothing to chance. Check out all the screen options available to you. This way when you’re on the meeting, you won’t be the one yelling out, “Where is this?” or “How do I do that?” or “I can’t find the mute,” and more. Don’t let a business meeting on Zoom be your first time on camera. You can and should rehearse. Be familiar with the screen and its options; there’s not an actor around who Camera Ready Tip #4 doesn’t have rehearsals. And trust me, do it more than just one time. YOUR NAME – Your name will autoIt’s your protection to be matically appear on your picture. You can better! change it to read your company name, or you can add your email address or whatever you’d like. The point is you can change it. You Camera Ready Tip #5 can customize that part as you sign on. Place the curser over your name and you will be able to BE CREATIVE – It’s obvious if you use change what it says. Simply look for the 3 little the same word over and over and over. dots in the upper right on the screen. It has Often some folks start with the same word a ‘change name’ option. Again, only if you every time they’re called on. They start with want to. But it’s a nice thing to know “so” (“so this” and “so that”). We don’t need about, before you go on. the word “so” starting every sentence. “Well,” is another often-used word to start every sentence. Be mindful, too, of how often you come out with an “umm.” The word “umm” is used as a crutch and not really needed.

Feb/Mar 2022

Camera Ready Tip #6

MEALS ON CAMERA – No meals. I’ll just be blunt. Don’t eat meals on Zoom or camera during a business meeting. Especially crunchy things: potato chips or anything chomping on loud things. It’s not appetizing to anyone. Loud noises sound 10 times louder when there is a microphone involved. Sometimes even that simple bottle of water makes a big sound. Feel free to use your mute button when you’re drinking. And absolutely no gum. So there!

Camera Ready Tip #7

DOGS & KIDS – Yes, they’re cute – to you. But they are a true annoyance to a meeting. Never fun on any phone call let alone a TV appearance like Zoom. Be prepared. You normally know when you’re going to have a Zoom meeting. Get the dog in another area of the house if you can. And kids – yes, they need attention. Consider trying to get your meetings while they nap or before they get up or after they’re asleep. Most of the barking, crying and extraneous noises are not appreciated. Camera Ready Tip #8

BACKGROUNDS – Be authentic. Keep it real. Fake is fake. And I’m pretty sure people don’t really believe you’re in Venice or at the beach. Some of the backgrounds can be fun; but in truth, they’re distracting – especially when you try and be funny and keep changing them every five or 10 minutes. Wherever your computer and camera are is normally fine. Remember they can only see what is behind you. So, if your place is a mess in front of you - who cares? Most of the folks who zoom are calling from home and we’re all pretty much in the same boat.

Camera Ready Tip #9

GOOD LIGHTING – Uber important. Keep the best possible lighting in front of you. That’s key. You know how when you’re outside, if you’re facing the sun, the picture turns out much better than if the sun is behind you? The faces usually look much darker and difficult to see when the sun is behind you. Same thing on Zoom. Keep good lighting in front of you. You can get a $12.95 LED light on Amazon. Or even most of the ring lights with a camera work great.

40 Pillars of Franchising

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.

PILLARS OF FRANCHISING The Dream Starts Here! Reach your target market with the click of a button. 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 Feb/Mar 2022

Pillars of Women

Finding the Sweet Spot

in Negotiation by Nancy Chorpenning

ave you ever wandered down a Barnes & Noble aisle or an Amazon business books page and seen how many books have been written about negotiating? Why do you suppose that is?

42 Pillars of Franchising

And have you ever noticed the titles? For example, Getting to Yes, Never Split the Difference: Negotiating as if Your Life Depended on It, Crucial Conversations Tools for Talking When Stakes Are High and Getting More: How You Can Negotiate to Succeed in Work and Life. It’s as though these authors perceive negotiating as a fixedsum game. But it isn’t really. Not if it’s successful. If you view it as a fixed-sum game, you’ve entered “the binary zone.” You are thinking it’s like a pie. If you get some, it means there’s some I don’t get. “Win-Win” is often evoked in speaking about a negotiation. But “Win-Win” is about capturing all the value and, more often than not, it’s “I win — you lose.” It’s about scarcity and abundance. Wherever you see scarcity, you will inevitably “lose” even if you “win.” Negotiating the “Sweet Spot,” as defined by Dr. Leigh Thompson, J. Jay Gerber Professor of Dispute Resolution and Organizations at Kellogg School of Management at Northwestern University (my alma mater), is when we leverage, integrate and expand the value of that which we are negotiating. Optimizing to the sweet spot includes money in addition to other intangible, but infinitely valuable, non-financial resources such as happiness, peace of mind, contentment, satisfaction, relationship stability and trust.

What is necessary is to perceive more than simply the cold, hard facts. It is crucial to understand what is important or of value to your negotiating partner. What are their priorities?

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is a skill, and it can be learned (unless you believe you can’t learn it). What are some of the negotiating challenges you have faced? How did you resolve them?

Wherever you see scarcity, you will inevitably “lose” even if you “win.”

Few people are willing (or even able) to share their priorities in a negotiation. Just listen to congressional politicians talk about negotiating the “Build Back Better” bill to see this operating in public—not the best way to negotiate, by the way. A certain senator will not reveal his non-negotiables, while a congresswoman is offering him various “packages” of components from the bill and beyond to illuminate what is of actual importance to him. She isn’t trying to strong-arm or embarrass him. Rather she wants to understand what is important — of value — to him beyond the mere specifics of the deal. Dr. Thompson describes an approach that is often more apparent among those with an abundance mindset (or a “growth mindset” rather than a “fixed mindset”). Successfully identifying and achieving the negotiating sweet spot where value is about more than just things that can be reduced to a financial transaction

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.

Feb/Mar 2022

Mentoring

Retaining High-Performing

Women Leaders by Karen Kimsey-Sward

he pandemic continues to take its toll on many employees, including women. Many, especially those who are at the beginning of their careers, have had either to downshift their careers or have left the

44 Pillars of Franchising

workforce in the past 18 months due to personal and professional roadblocks and challenges. Numerous research studies indicate 40% of women have considered or are considering leaving their companies or switching jobs.

Studies also show that companies with an equal gender mix perform significantly better than those that have male-dominated teams, especially when it comes to revenue and profitability. What are key areas we can focus on to build and retain our high performing women leaders at all levels? •

•

Evaluate your company culture. Corporate culture affects nearly everything in your company either directly or indirectly. In your business, ensure that the way people interact and collaborate with each other, the approach to problem solving and how decisions are made doesn’t undermine or impede the effectiveness of your women leaders. This important at every level in the organization all the way to an individual manager level. The views of one manager can undermine progress and the culture. Often, people don’t leave companies, they leave managers. Provide flexibility. Many women continue to bear the overall responsibilities of managing home and work. A key reason many are leaving the workforce is the stress of managing both and the lack of flexibility. Offer flexible work options that include when and/or where employees work. Although it is important to create fairness when making decisions on flexible work, let the employees have

a voice in how this can be achieved. It’s also important to ensure that an employee is not judged for having flexible work hours, or that they do not feel as if they are missing out on opportunity because they have a flexible work arrangement. •

Focus on pay equity. Pay equity is an important tool to retain and advance women in your organization. While compensation can’t take care of everything, it plays a part in retaining your key leaders. Pay equity perceptions within the company can also influence morale. Regardless of the size of your company it’s critical to have and follow fair and consistent policies.

•

Identify and leverage key strengths. Encourage women leaders to identify the key strengths they bring to their teams and the work they do. Work with them on a plan to leverage these strengths within the company. Provide them with growth opportunities that are aligned with their goals. For example, have them lead a meeting or a particular project and provide them with growth opportunities. This brings a sense of belonging and inclusion that is so important to keeping leaders engaged and part of the team. It is also key to celebrate differences within the organization and reinforce that we all play an important role within the organization.

Building an environment where your employees and leaders feel connected, valued and respected by each other will lay the foundation for a successful, thriving company. When you embrace a diverse group of men and women, people will identify and leverage the strengths and talents of one another. The number of women in leadership is continuing to grow, and whether you are a male or female leader, it is important to create a culture of opportunity and growth for all and to be in tune with the obstacles your employees and leaders face – and then to find a solution to retain your top talent.

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 or Franchising. Karen is currently COO of Dale Carnegie Chicago. Karen can be reached at 630-640-0339.

Feb/Mar 2022

Featured Vendors

UniFi Equipment Finance Formerly, Ervin Leasing, UniFi Equipment Finance provides superior service with a variety of lease plans on virtually all types of commercial equipment. We have earned a reputation for service and integrity. Our lease representatives are experienced professionals in the leasing industry and the equipment markets they serve. UniFi/Ervin Leasing has been a proud member of the Equipment Leasing and Finance Association (ELFA) since our inception in 1978. The two companies share a mission for quality service, strong credit culture and a commitment to build our communities. For more information, visit: www.teamunifi.com

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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

Westvyne Westvyne has been creatively bridging the gap between marketing & technology since 2010. We have been guiding our 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. We truly enjoy getting to know about our customers and their products and services We offer a full complement of services including digital marketing, website design, marketing and brand strategy, graphic design, podcast consulting and franchise marketing. Reach out today at www.westvyne.com

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

Feb/Mar 2022

Features

Franchising with

Mandy Rowe

by Elizabeth Denham

andy Rowe was bitten by the franchise bug seven years ago and will not be satisfied until everyone has experienced the healing powers of floating. As a part of TrueREST Franchising, she oversees franchise development and is a dedicated floater.

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“Until everyone knows about floating, my job is not done,” Rowe said. “The first time I ever experienced floating was when I lived in Nashville, and it was a profound experience. I had never experienced sensory deprivation in that way – it is so dark you can’t see your hand in front of you face. It is jarring at first, but once you try it, you want to do it again.” Rowe joined her father’s team at TrueREST Franchising seven years ago after working in Nashville in property management after college. Her father, James Rowe, is TrueREST’s CEO and has worked as a franchisee, a regional director and master franchisor with brands such as Help-U-Sell Real Estate, Healthy Inspirations and Dogtopia. When they began working together, there were a few kinks to work through in the begin-

ning, but it has been smooth sailing ever since. “I am my father. I am his exact replica,” she said. “So, the first year was a challenge. It was a bit contentious at first, but we knew we were symbiotic. He knows what he knows, and he knows what I can do. We haven’t missed a beat since that first year. He was the voice of the franchise, and now I am the face of it.” With her mother managing the corporate stores and her brother, a recent college graduate, joining the real estate side of things, it is truly a family business. “My dad instilled the value of compete transparency in our business,” Rowe explained. “We give that to each other. There are no doors on our offices, and we can look over each other’s shoulders at any time. And no one gets in trouble for asking questions or voicing opinions.

One thing Mandy Rowe has brought to the business is the passion and social influence of her generation. She has built quite a following on TikTok and continues to grow it. With more than 170,000 followers, and 7.9 million likes, she uses the platform to gain brand awareness and build the business. “It’s a lot of fun to make the videos,” she said. “We show the pods, we show the rooms, we answer questions. People are really into it!” After graduating with a degree in economics from Vanderbilt University, Rowe said she always knew she wanted to go into business.

Feb/Mar 2022

What is Float Therapy? True REST® (Reduced Environmental Stimulus Therapy) is a zero-gravity environment that allows the mind and body to completely let go, relax, and reset. Using 1,000 pounds of Epsom Salts, the buoyancy of the water makes floating on water feel like floating on air. By eliminating the forces of gravity pulling on the musculoskeletal and nervous systems, you can relieve pain, relax, recover and improve sleep.

Flotation therapy (aka sensory deprivation) offers relief and benefits which are cumulative—they build on themselves with each subsequent session. Though flotation is an “effortless” therapy, the body and mind actually learn how to relax into the float with each session. Stress, tension and pain have formed over time and will take some time to experience the greatest relief.

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“

Until everyone knows about floating, my job is not done.

“All of the personality and aptitudes test show that I should be an entrepreneur. I am one with vision, but not as great at getting things done…so I am a delegator versus an implementor,” she said. “And I love the health and wellness sector. I have found a whole different kind of fulfillment with TrueREST that I didn’t even know I needed.”

“The goal of the founder of our company, Nick Janicki, was to float one million people,” Rowe added. “In September, we hit 600,000. So, I think we will make it!” She also has a passion for helping women in business, and she believes franchising is a great way for women to become business owners.

The Future in Franchising

“It is extremely empowering to be in this space,” Rowe commented. “It is so much fun! My favorite part, other than floating, is working with franchises. A lot of times women miss out on the opportunity for business ownership because they don’t know about franchising. I think any woman who wants to be in charge of her income and career, not just as a franchisor, but as a franchisee, can pretty easily fulfill her passion and find a franchise to do it. She can have someone holding her hand and be up there with the big boys pretty quickly. I am seeing women do it in TrueREST, and I just love it.”

Rowe has lofty goals for the next phase of her career. TrueREST has 39 open locations today. She would like to see 50 more next year, and 100 in five years. She would also like to be on the top 20 list of franchises in Entrepreneur and wants to rise to CEO of the company before she is 40.

For more information, visit https://www.truerestfranchising.com/.

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 Feb/Mar 2022

Million Dollar Minute

Mentors Talk Pillars, Plans

by Elizabeth Denham This issue is all about women in franchising. As a woman, Kristin, and as men who have female family members in the business, David, Jerry and Ray, how do you see women thriving in franchising? What makes it a great opportunity for women? KS: We know that women are the primary decision-makers at home. We also know that depending on the product or service a franchise may offer, women like doing business with women! (And we all want to do business with people we like). For me, as an executive outside of the home, three kids, three dogs, travel hockey, travel baseball, theatre and speech

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activities, I can relate to most women in one way or another! Franchising helps lay out your business strategy and set your operational standards. Women are already great at handling multiple demands, and we know how to get things done! The franchising model makes it feasible for women to make career changes into business ownership. Franchising allows women to find more of a balance for family time! For my family, 16 years ago, it was the best decision I could have made! JA: I think Franchising overall has a gender neutral stance on business! I have seen so many successful women in franchising

that it is hard to imagine many, if any brands with gender bias! My daughters lead our Great Clips organization which is one of the largest groups in the largest hair care brand in franchising and every brand I am involved with has a solid place where women can be successful. DK: It comes down to passion and desire. If one is passionate about being in control of their own success, or a particular industry or just want to make a difference in some way, then they should go for it. Of course, doubts and fears creep into everyone. That is why franchising is so important for someone just

and Propelling into the NewYear starting out. It helps eliminate a lot of the unknowns and gives confidence that you can succeed. RP: Being an entrepreneur requires a considerable amount of tenacity (stick-to-itiveness), which I feel women may have the edge over men. In other words, you must be able to begin with the end in mind overcoming every pitfall in-between. How did being in franchising influence the way you raised your children and what lessons you have taught them about professional opportunities? KS: Franchising was a critical part of raising my family! It allowed my children to see a mom that was working hard at growing business and relationships in the community. The best part was that because I could control my schedule, I was extremely active at the schools they attended. With three kids, I bounced from room party to room party and volunteered as the PTA President for three years! We had family time for the weekends, holidays and vacations! I

love that we were a stronger family unit than we would have been if I were still working for someone else! Now that my kids are in high school and preparing for college, they are more interested in what I’m doing in the businesses. My son has been focusing on accounting, marketing and finance. All of my kids are required to learn a second language and continue throughout high school. With my new role at Pillars of Franchising, they are very excited to see how we build a company outside of franchising but all about franchising! JA: Overall, franchising is a microcosm of business success principals. Hard work, taking risks, being true to your model, etc.are facets of any successful business! Showing that franchising offers a larger peer group you can lean on for help and great voices for franchising like the International Franchise Association made it much easier for our children to find their way in this business. DK: They saw the dedication and hard work it took to be success-

ful. They saw the ups and downs and the perseverance needed to succeed. They have taken those lessons to their professional careers. RP: My children were in the process of leaving the household when I was starting the franchise. That doesn’t mean they have stopped learning. Having one son and a daughter-in-law in the business with me now, the learning never stops. As we move further into 2022, what are you looking forward to with your businesses? KS: I am now at a point where I am looking to grow key employees into larger leadership roles. I’m looking forward to bringing my kids into the business, so they have the opportunity to see first-hand what it takes to run this sized business. My goal is to begin my serious planning of “virtual” retirement… (for me, that simply means not living in the snow during the winter months)!

Feb/Mar 2022

JA: Growing back to nearer past customer count and revenue levels post Covid. Getting staffing back to a normal level leading to less struggles in the future. Continuing the transition to the next generation. DK: Looking forward to the challenge of beginning in a brandnew industry and starting a brand new business. RP: As we learned recently life is full of surprises. I do expect that beginning in the second quarter we will see significant improvement in all aspects of the business. But I am an optimist. What trends do you anticipate in franchising for the coming year? KS: I believe that services will continue to grow! There are more people who can no longer do things they used to do or know how to do. Some people have more income with less time to perform tasks or repairs, and then there are those with disposable income but a lack of skills! (As you can see by the lack of tradespeople today). I wasn’t even allowed to drive until I could change my own oil and help my dad do a brake job! Most of my employees today don’t even know how to jump their cars when faced with a dead battery! Today, and in the future, I see the “Do It For Me” industries doing very well! JA: More people looking to franchising as an option for their future. Greater opportunities for all in franchising. DK: It amazes me how many great opportunities there are. I

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would have to think that people buying into franchise concepts will be on the rise. It’s the simplest way to get started in your own business. RP: When is the best time to buy a franchise? There has never been a better time, as we have discussed on the show for a multitude of reason. More people want more control over their lives. What are you looking forward to this year as Pillars of Franchising continues to grow? KS: This is going to be a groundbreaking year for Pillars of Franchising! At this point we have such great people on our team with an abundance of talent! I personally look forward to helping more people find the perfect franchise for their lifestyles and goals. My goal is to bring the Pillars of Franchising brand to the forefront! When people think of franchising, when the have questions about franchising, I want them to think “Pillars of Franchising!” Building our brand by providing consulting, mentoring, marketing and investment / management opportunities throughout the industry is what I see in the future! JA: Continuing to provide meaningful mentoring for franchisees leading to their enhanced success. Kickoff of the investment arm of Pillars. DK: Helping others find the opportunity that sets them up for a lifetime of success RP: When Fred asked if I wanted to create a podcast with him,

my answer was “yes.” I wanted to spread the word about this wonderful business concept called “franchising.” Our audience has grown from nothing to thousands in a few short years. Its growth always allow me to tell more people about what I have learned in my business and from our guests. Any New Year’s resolutions? KS: Lol! Don’t I always start with losing weight and getting in shape? But seriously, this year I will start each day looking for the positive in the things I do, the conversations I have, the people I meet, the places I go… maybe even the weather… I try to remember that tomorrow is never promised. I hug, kiss and remind my kids I love them every day! I believe that if you are happy inside, people see that in you, and it can become contagious. Our world needs a bit more happiness, don’t you think? JA: Find six more franchises to become involved in! DK: Consistency compounds. The start of a new year is not a catalyst for change to me. If I start slacking in my routine, would I really wait until the new year to get back on track? Makes no sense to me. RP: I usually don’t commit to anything I may not complete well. With that said, I have ideas about how to improve many aspects of my life and business. RP: I usually don’t commit to anything I may not complete well. With that said, I have ideas about how to improve many aspects of my life and business.

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PILLARS OF FRANCHISING

56 Pillars of Franchising

Pillars of Franchising magazine - Issue 3 February/March 2022

Articles inside

Mentors Talk Pillars, Plans, and Propelling into the New Year

Franchising with Mandy Rowe

Retaining High-Performing Women Leaders

Finding the Sweet Spot in Negotiation

Are You Camera Ready for Zoom?

One Woman's Story of Choosing Financial Freedom

Your Roadmap for Targeting Marketing

Reading the Fine Print of the FDD

Women Mentoring Women

Taking the Journey Together

How to Find the Best Franchising Opportunity

The Benefits of Leasing VS Buying Equipment

Jane Plitt Q&A

Unique Funding Challenges and Tips for Women Entrepreneurs

Pillars of Franchising magazine - Issue 3 February/March 2022

WNBA Legend Jackie Stiles Powers into Next Gen Fitness Franchise