May/Jun 2024

The Path to Millions

Six entrepreneurs share the skills they never knew they needed.

A food startup’s old branding was dragging it down. Are you making the same mistake?

KAVIN

G. PFERDT

When Monica Ashauer switched up her business model, her company Birdy Grey finally took flight. P.50

JASON FEIFER

FRANCHISE

70 The 150 Top New & Emerging Brands

Want to buy a young, exciting franchise? Start here.

by TRACY STAPP HEROLD

86 Old Skills, New Use

This engineer wanted a new challenge. And she found it.

by JOHN FRANCIS

88 From 40 Stores to 200-Plus Franchises Nationwide

Estrella Insurance rethought its franchise strategy.

by KIM KAVIN

90 There’s a Better Way to Sell Franchises

A few bad actors are hurting us all. This is a call to action.

by AARON HARPER

102 Top Franchises for DEI

These 100 companies offer programs and incentives to expand opportunities.

by TRACY STAPP HEROLD

CLOSER

112 What Inspires Me

A terrible loss taught me about resiliency—and why building it is critical. by MITA

MALLICK

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May-June 2024

→ ROUND TWO Ben Witte thought his future was in CBD drinks. When the market shifted, so did he. P.50

The One Change Auto Services Giant Monro Made to Save Time and Gain Insight into Procurement

It impacted the entire business and allowed them to better serve their customers across the U.S.

In today’s fast-paced retail landscape, having a great product is essential, of course. But smart business owners know at least two other things are crucial for success as well: efficient inventory management and streamlined distribution processes. With smart business buying plans in place, these processes can enable companies of all sizes to minimize costs, improve cash flow, enhance customer satisfaction, make better decisions, and even gain a competitive edge.

That’s why when Monro, Inc. — an automotive service and tire dealer with more than 1,250 locations nationwide — needed to reconfigure their distribution services model, Luis Pereira, Senior Manager of Indirect Procurement, began to research options.

As Pereira puts it, “indirect items are anything that the business needs that doesn’t show up on a customer’s invoice that are important for operations.” For example, these items include office equipment, paper products, and cleaning products. While these items do not directly contribute to the company’s core products or services, they’re necessary for the smooth functioning of the workplace environment and the opportunity to better serve customers.

Monro previously operated with a traditional distribution system, which sometimes resulted in long lead times and limited visibility into procurement. Locations often had to resort to local purchases for those indirect items, and that led to untracked spending and inventory discrepancies.

“We would order bulk supplies and distribute them in the same manner that we would with our tires or parts, but there was a lot of tail spend from the stores when they couldn’t get what they needed because they would only receive deliveries every two to four weeks,” Pereira explains. “When stores would purchase supplies, I could see that they made an expense, but I had no idea of what the category or item was.”

From pilot program to realizing company-wide benefits.

With the impending divestment of their distribution arm, Monro needed a swift transition to a more efficient procurement model.

Pereira looked to Amazon Business to manage that tail spend, gain visibility, and better equip their employees to help

customers. The implementation of Amazon Business involved a structured approach: Monro began by collecting data and understanding their procurement patterns. Through collaborative efforts with Amazon Business Customer Advisors, Monro optimized their purchasing strategies and established guidelines for preferred products and suppliers.

At the start of a pilot program, Pereira intended for Amazon Business to act as a secondary option for when their distribution services couldn’t deliver items on time. But Pereira soon realized that there may be more potential for Amazon Business at play. “After an in-depth cost analysis, we validated that Amazon Business was the best option for us,” he says.

Saving time and money by buying smarter. Amazon’s flexibility and scalability stood out for Pereira. “Not only was it easy for us to implement when we had our own distribution services, but it was also very adaptable for when we changed our model. And that was significant for our business,” he says.

In addition, Monro benefited from saving time in terms of training and onboarding for their employees. “We used our own internal training module, Monro University, which explained how to use Amazon Business. This ensured that everyone took this step to complete the program and activate their account.”

Looking ahead, Monro plans to continue leveraging Amazon Business for purchasing and explore opportunities for expansion into other departments within the organization. “With Amazon [Business], the deliveries have been incredible, our locations are able to get what they need in just a day or two, and ultimately, this has had a core impact on our business and allowed us to better serve our customers,” he says.

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Every Action Has 2 Risks

Are you facing a difficult decision? Here’s the most important risk you’re not considering.

ENTREPRENEURSHIP is an endless series of hard decisions. I’m sure you’re facing one right now. Sadly, I can’t give you the right answer—but I can offer you something new to consider.

To really appreciate this, I first want to tell you about someone who faced a gut-wrenching choice of his own.

I’ll call him Steve. He’d stolen things, served time in prison, and wanted to turn his life around. Finding a job was hard, but he eventually landed some freelance work for a big company. He threw himself into it, outworking everyone and getting noticed.

After a few months, a senior leader called Steve into his office. They talked for 20 minutes. Then the leader offered Steve a fulltime job. “So just fill these forms out,” the senior leader told him. “We’ll do a background check, and then let’s get to work.”

That’s when Steve panicked. He was desperate for this job and was so close to his dream—but it could all fall apart once his manager learned his background. Steve happens to read my magazine column, so he emailed me to ask for advice. “What should I do?” he wrote. “Should I tell him about my conviction?”

“I can’t tell you what to do,” I replied. “But I’ll give you another question to ask: What’s the cost of not taking action?”

Because here’s the thing: When we weigh the risks of a

decision, we usually think about the consequences of doing it. What’s the upside? What’s the downside? But that’s only half the equation.

There are risks of action, but there are also risks of inaction Every decision has a cost—either because of what we do, or what we don’t do. You cannot truly know the wisdom of doing something, and decide whether it’s worth the risk, until you explore the costs of not doing it.

This applies to every major decision you’ll make. Are you in a relationship, unhappy with something, but afraid to tell your partner? Ask yourself: What are the risks of prompting some hard conversations, versus the risks of staying quiet as the situation gets worse?

Or let’s say you’re considering a career change. If you act, you might be gambling with your finances or career path. But if you don’t act, you might feel stagnant and regretful. Both are risks. Both are consequences. Only you can decide which is worse.

This is a version of what I told Steve, the former inmate. Do the risks of action outweigh the risks of inaction? And here’s what Steve did.

Steve realized that, in some ways, the future was already set. He could tell his manager about his past, or he could wait for his manager to discover it himself— but either way, his manager would find out. Steve could not

own the story. He could explain himself and humanize the situation. If Steve took no action, and waited until the background check came in, questions would inevitably be raised. Trust would diminish. People might wonder: Was Steve trying to hide this? Did he think we wouldn’t find out?

The manager’s reaction was unpredictable. But the risk of inaction seemed greater than the risk of action.

So Steve decided to be forthcoming about his past. He emailed me the night before he’d planned to talk with the manager. “Pray for me,” he wrote.

The next day, he sent me an update: The talk went very well. The manager said Steve was brave for being upfront about it,

he’s always wanted. He can restart his life.

We can move, or we can stand still. We can act, or we can stand by. But no matter what we do, we cannot escape risk. Every decision contains consequences. Every moment defines the next. And sometimes, the greatest risk comes from not doing the hard, scary thing…

Because sometimes, doing nothing gets you nothing.

Jason Feifer jfeifer@entrepreneur.com

@heyfeifer subscribe: entm.ag/subscribe

Jason

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‘You Don’t Have to Shut Your Heart Down’ Foods

What does it take to be a good leader? During his 44 years as CEO of Whole Foods, John Mackey learned his answer: Serve the business, serve its people, and never abandon yourself.

by JASON FEIFER

John Mackey is cofounder and the longtime CEO of Whole Foods. But in the early days of his business, he was called something else. And it wasn’t meant as a compliment: Wacky Mackey. One of his cofounders came up with the name, as a way of mocking Mackey’s lifestyle. To his doubters, Mackey seemed like an unserious leader for an increasingly serious business. He started the company when he was 24, having never attended a business class. He meditated, took psychedelics, and had many spiritual pursuits. He looked like a long-haired hippie. And while Mackey liked who he was, the skeptics ate at him. He wondered if he could grow into a fully respected leader, while still being himself. Ultimately, of course, he prevailed—building and running Whole Foods for 44 years, until his retirement in 2022. His rude cofounder had left the business decades earlier. Mackey chronicles all this and more in his new book, The Whole Story. “I wanted to convey to other entrepreneurs that this is a journey,” he says. “You have to grow, both personally and as a leader, as fast as the business. If you don’t, they’ll throw you out.” Here, he explains how to become the leader your company needs—without compromising your values.

In the early days of Whole Foods, you seemed like a great contradiction: You were growing into the role of a leader, and the company was succeeding, but your refusal to conform to people’s expectations put some people off. Yes. Here’s a story that’s not in the book. A woman was leaving Whole Foods Market. I didn’t know her, but she really wanted to speak with me on her way out. So she came into my office and basically told me, “You’re not like a CEO

→ OUT OF OFFICE

John Mackey hiking the McAfee Knob on the Appalachian Trail.

is supposed to be.”

I said, “Well, how’s the CEO supposed to be?” And she says, “More serious, more businesslike. You dress like a hippie, you don’t dress like a businessperson. You’re wearing shorts, you have long hair. You’re just not a good CEO.” And I said, “Well, the company is doing really well, so why do you say I’m not a good CEO?” She says, “Well, you just don’t act like a CEO.” And I said, “I don’t know how a CEO is supposed to act. I just act like I am. I’m an authentic person. I’m not trying to be a CEO. And I’m sorry you couldn’t reconcile that, but if you look at our results, they’re really good.” And she really had no answer for that.

What did you mean, you weren’t trying to be a CEO? I’m making a distinction between CEO and leader. A CEO is a position of authority. It’s a role. You’re the person in charge of the company if you’re CEO, but you may not be a good leader. You may have just played a good game and gotten promoted. But leaders are those who others want to follow. A good leader inspires people and has integrity. We trust people we know that are in service to the business, and that aren’t in it just for themselves.

In large corporations, you have people playing the game to get higher positions with the ultimate goal to become CEO. And the problem is, most don’t get there until they’re in their 50s or even 60s. So their stint as a CEO of a large public company may not be that long. It may be five to 10 years. And oftentimes they’re not thinking long term. They’re not thinking about, How do I serve the company best? They’re think-

ing, How do I get that stock price up so I can make a lot of money? That’s not how a leader would behave, but that is how a CEO might behave.

Now I see why you didn’t care about being a CEO. But how did you learn how to be a good leader?

I asked myself a question all the time, that I think other entrepreneurs should ask: What does the company most need me to do now?

If there’s something you’re good at, you want to keep doing it, because you enjoy it. But I found that I had to let go of those things, because the company no longer needed me to do them. I’ll give you an example. In the early days, the most important decisions we could ever make—besides hiring good people—were the locations. So I headed up the real estate team for several years. I was good at it, and I

now? The answer will change as time passes. But one of the reasons I was able to grow as a leader is because I kept asking that question, and I had the courage to go into unfamiliar, uncomfortable situations.

How did you prepare yourself for those new situations or responsibilities? Did you have a strategy?

I had a great executive team, and I trusted the wisdom of that intimate team. We would argue, we’d debate, and we’d make better decisions as a group. You need a team with a high degree of trust, because people need to be able to speak their own minds without fear that it’s going to harm them.

I think the media often portrays people like Steve Jobs and Elon Musk and Jeff Bezos as sort of like Superman or Superwoman. And I promise you, no matter how brilliant

through purpose and love— those are the two most important things. And not having a massive ego that takes all the air out of the room.

“Love” isn’t a word you hear often in business. In fact, many people say you need to leave your emotions at the door. Can you make the argument for talking more about love in business?

I understand what you just said, and [unbridled emotionality] is a misunderstanding of what love is. Love means you care about people, you care about what happens to them, and you care how they feel. You still have to make hard decisions. Your first responsibility is to the collective good of the whole business. That may mean somebody’s outgrown the business and they need to move on. You can still love them. You can still do that in a way that’s caring and do

I’M MAKING A DISTINCTION BETWEEN CEO AND LEADER. A CEO IS A POSITION OF AUTHORITY. IT’S A ROLE. YOU’RE THE PERSON IN CHARGE OF THE COMPANY IF YOU’RE CEO, BUT YOU MAY NOT BE A GOOD LEADER.”

liked it. But eventually, that wasn’t the most important thing the company needed me to do. So I stopped. Instead, I was forced into new situations. The company needed me to be more involved in PR as the face of the company, for example. And I made a lot of mistakes in PR! But it’s what the company needed.

That’s why the question is important. It’s not, What do I like to do? It’s not, What am I really good at? It’s, What does the company most need me to do

somebody is, they’re backed by a brilliant team, and they’re making a lot of these decisions collectively. I don’t think that’s well-understood.

What’s the key to building a brilliant team like that? It’s a word I use a lot in my book: It’s love. People on my team knew I cared about them, knew I loved them, and that we were trying to get to the same goals together. They knew I didn’t care who got the credit. You build that team

all you can to help them land in a good spot.

You will not inspire people, and you will not create loyalty and commitment, if people do not feel that you care about them. So that’s the answer to your riddle. You have to be a servant leader, for the good of the whole. But you don’t have to shut your heart down.

To hear this entire interview, find Jason Feifer’s podcast Problem Solvers wherever you get podcasts.

3 ways Startups Find Unexpected opportunities in WISCONSIN

When starting a business, having a great idea is just the beginning of the process. To bring that idea to life, you need to find market fit, consider funding or financing, and perhaps most importantly, to decide where you’ll set up operations to ensure that your business can thrive.

Take it from Alex Tyink, who moved back home to Wisconsin to start Fork Farms, a Green Bay-based business that reated indoor, hydroponic technology allowing people and communities to participate in the fresh, local food movement.

The idea for Fork Farms was hatched in New York City, where Tyink started volunteering at a rooftop farm and learning how to grow vegetables. Then he began experimenting. He eventually found that using the right combination of grow lights and reflective surfaces, he was able to reduce the amount of total energy required to produce a pound of food by almost a quarter from the industry average, he says. Tyink applied for patents and soon realized he was onto something.

So why start his budding agriculture tech business

1,000 miles west in Wisconsin? Here’s why Tyink’s business and so many others find opportunities for success in the Badger State.

1. The supportive, tight-knit community.

Tyink says there’s something about Green Bay, and Wisconsin in general, that people won’t find in other parts of the country: A community that supports its entrepreneurs from starting up to growing and scaling. “In Wisconsin, there’s a tight-knit ethos, and people have been so supportive of innovation and creativity,” he explains.

Complimenting this strong sense of community, entrepreneurs and their employees here enjoy a superb quality of life coupled with low business and living expenses (the cost of living in Wisconsin is 6.5 percent lower than the national average). Plus, Wisconsin is home to some of the best colleges and universities, which provides entrepreneurs with a qualified talent pool.

2. Access to capital.

Another important part of Wisconsin’s entrepreneurial ecosystem is its line-up of investment firms. Among them

is Titletown Tech, a venture studio and innovation center located in Green Bay.

When Tyink began to explore options for funding, he turned to the team at Titletown Tech. “Any time we look at a company, we look for smart and talented owners that are solving a meaningful problem with their business, and Alex and his team covered that,” says Cordero Barkley, a partner at Titletown Tech. “We figured out what their needs were, from offering them the opportunity to work out of our office space to working out the details of what a funding round may look like.”

Entrepreneurs can also apply for loans or grants directly through the Wisconsin Economic Development Corp., which offers a variety of grant programs that can be used to finance startup costs, expand operations, or purchase equipment.

3. A Wealth Of Private And Public resources.

Business owners who start up or relocate to Wisconsin also have access to a growing list of resources through the WEDC — everything from skills training to grants to local economic development projects.

“We have a suite of resources that are designed specifically for startups and entrepreneurs, and we understand what their challenges are and what their opportunities are,” Hagar explains. “So, our resources are tailored to their realities. All these things fit together in a way that an entrepreneur can find their own path through those resources. We also have an amazing network of partners that can provide a larger set of resources for ideally any entrepreneur to tap into.”

“Wisconsin is a place where the people are the biggest asset,” Tyink says. “We have gotten so much free advice and so many people have helped us without the need to compensate themselves. If you have a great idea and pure intentions, you’re going to find an amazingly receptive community of people and other businesses who are willing to help. My greatest advice is to be open to accepting that help.”

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The Skills You Never

Do you know what it takes to succeed? Here, six leaders share the skill they underestimated—and needed to develop.

1/ Spotting the red flags in dream clients

“I underestimated the importance of discernment. Early on, we had what seemed like a dream client—but red flags started to emerge. They were going through some internal strife, and their executives were contradicting each other, which bled onto our team. Winning the business took precedence over my intuition, and ultimately, the politics of our client pushed our work to the side. It taught me that winning can feel like losing if you aren’t careful who you help.”

—LILLIAN

MARSH, cofounder and managing principal, TinyWins

2/ Actively listening to customers

“I never imagined how important active listening would be. It means being attuned to additional context, what’s not being said, and refraining from attachments to what you want to be true. For example, I shared my cell phone number with our first 250,000 customers. It was daunting, but listening to them was how I discovered the trend of using social media for search and discovery purposes. This led us to base the entire company on social commerce.”

—KONRAD WALISZEWSKI, cofounder and CEO, @hotel

—KONRAD WALISZEWSKI, cofounder and @hotel

3/ Stamina for the slog of leadership

“I’d worked in the trenches at other startups—doing everything from taking out the trash to managing marketing budgets. But the total accountability of owning your own business is different: making sure trademarks get filed and contractors are paid on time, answering every investor question, sending invoices, being the go-to customer service person. You have to ‘eat your vegetables’ before you can build a team that takes care of it for you.”

—ANGELINE VUONG, cofounder and chief product officer, Cherub

—ANGELINE VUONG, Cheru

4/ Having a sense of humor

“I severely underestimated the importance of finding lightness in all situations. Starting and scaling a business is a bumpy ride, so cultivating a sense of humor has been a powerful coping mechanism. It not only alleviated tension, but allowed me to truly enjoy the journey. Whether overcoming a logistical nightmare or navigating a difficult conversation, finding moments of lightness helped me maintain perspective and keep morale high on my team.”

—MARINA MIDDLETON, CEO and co-owner, Create & Cultivate

5/ Seeing the details that matter to your customer

humor to your customer

“In the pre-owned fashion business, I quickly realized the value of getting details like color names and styles exactly right. For example, posting a light blue Birkin as ‘Hermès Birkin bag - light blue’ might result in an $8,000 sale. But posting a “Hermès Togo Verso Birkin 35 Bleu Zanzibar Malachite” will help you find the right buyer who knows that the bag is actually worth $15,000, due to the limited release of that color and leather combination.”

—BEN HEMMINGER, cofounder and CEO, Fashionphile

—BEN HEMMINGER,

6/ Asking for help

“As a practicing physician, asking for help was not seen as a strength. Competent physicians are trained to handle issues within their specialty without much collaboration. But as an entrepreneur, asking for help is a good thing, so I had to retrain my brain. There are so many knowledgeable people. It’s my job to identify those people, build relationships with them, and ask for their help.”

—DR. LYNDSEY HARPER, founder and CEO, Rosy

—DR. LYNDSEY HARPER, founder and Rosy

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Which Fridge Would You Eat From?

A great company mission doesn’t always inspire great sales. That’s why this discount grocery company rebranded, and is now reaching more customers. by

KIM KAVIN

Will people buy cheap food to help save the planet? The answer is yes—and no. This was the idea behind Flashfood, an app-based marketplace that aims to divert food away from landfills, and to families in need. It collects food nearing its best-by date, places it in refrigerators at more than 2,000 grocery stores, then sells the food to users at a discount. Since launching in 2016, it’s diverted more than 90 million pounds of fresh food and saved shoppers more than $200 million.

But when chief customer officer Jordan Schenck began listening closely to customers a while back, she heard a disconnect. Flashfood’s marketing and branding were all mission-oriented—with a leaf logo to signal sustainability, and phrases like “Help us reduce food waste” splashed across their fridges. “But when we got into the why of people buying the product, it was actually—‘Hey, I saved $2,000 on groceries, and I was able to fix my roof or get my kid school supplies as a single mom,’” Schenck says. “It wasn’t, ‘I took 900 miles of carbon dioxide out of the atmosphere.’”

Flashfood had fallen into a classic trap: Consumers may love a brand’s mission, but

that’s not why they buy. So this past January, Flashfood rebranded. “We wanted to make the affordable desirable,” Schenck says. Now the branding is all about bargains and people, and sends a less lofty message. “We wanted to keep it real random, like the fun of what you find in the fridges,” Schenck says. “And we wanted our design style to communicate joy, which led us to a vintage-inspired illustration style and an extremely tasty color palette.”

The month they launched the rebrand, they saw the highest number of app downloads in the company’s history. “We wanted to create a bright and energetic space,” Schenck says, “where you don’t feel like you’re making tradeoffs to be part of this club.”

→ OLD BRANDING

Small Packaging Changes Can Have a Big Impact on Consumer Perception and Help You Meet Your Sustainability Goals

Swapping plastic for paper can generate positive results for businesses in numerous ways.

Sometimes even the smallest change can go a long way in improving consumer perception and brand loyalty. Right now, one of the most immediately impactful things a brand can do is to switch plastic packaging materials for paper. And for good reason.

A recent study indicated that more than 80% of shoppers are concerned about plastic and packaging waste1, preferring options that are easily recyclable and produce less waste. In another recent survey, 78% of respondents said they think more highly of companies that package their products in paper-based packaging2

Unlike plastic, paper and paper-based packaging are some of the most recycled materials in the U.S. Paper has a recycling rate of 68%3, compared to just 5% for plastics4. More paper by weight is recovered for recycling from municipal solid waste streams than glass, plastic, steel, and aluminum combined5. That’s huge. Paper-based packaging is designed from the ground up to be recycled, making it the go-to choice for increasingly eco-conscious consumers.

As more consumers opt for paper-based products over plastic, many brands are turning to paper manufacturers for solutions that provide packaging integrity while also supporting brand sustainability goals such as material reduction, recyclability, and sourcing from renewable resources.

A simple way to eliminate single-use plastics. Plastic forks and knives. Laundry detergent bottles. Beverage containers. When you think of single-use plastics, these are some of the products that likely come to mind. Another is multipack bundles—the plastic used to bundle food and beverage products together for easy handling.

surface for high-definition graphics. It is also engineered for durable and comfortable handling and helps manage costs with minimized or optimized material usage.

“Customers appreciate the fully printable surface for crisp, vibrant graphics, and consumers appreciate its durability and ease of handling,” says Sam Shoemaker, President of Consumer Packaging at WestRock. He adds that, so far, wholesale businesses that sell multi-pack food and beverage products are the primary segment using EnduraGrip™. And they’re seeing positive results. “Customer and consumer response to EnduraGrip™ has been highly favorable.”

All in on paper.

That’s where EnduraGrip™ comes in, an innovative solution that enables brands to transition multipack bundles from plastic clips to a recyclable paperboard alternative. It was launched in early 2023 by Atlanta-based WestRock, a company that creates paper-based packaging for several industries including food, beverage, healthcare, retail, beauty, and more.

In addition to being highly recyclable, the paperboard-based EnduraGrip™ provides companies with a fully printable

With more businesses becoming serious about sustainability, many are looking to eliminate plastic from their packaging completely. One recent innovation replaces plastic-based blister packaging with a paper-based solution. Sonoco, a global provider of packaging products with more than 300 operations around the world, recently launched the EnviroSense® PaperBlister™, the company’s sustainable answer to traditional blister packaging for brands that want to eliminate plastic packaging.

Sonoco conducted in-person focus groups, developed new seal tooling, designed new blister cards and cavities, and “established a retrofit kit that could be ordered and added to existing sealing equipment to make it PaperBlister-ready,” says Kim Sanderson, a Senior Marketing and Sales Associate at Sonoco Alloyd.

Without the plastic window for visual product identification, the PaperBlister™ relies on realistic HD-quality graphics as well as cutouts in the front cards and back cavity card. And consumers are immediately aware that the packaging is sustainable thanks to highly visible recycling instructions incorporated into the design. “With so many stores requiring reduced or zero plastic, along with legislation pushing for various plastic laws, PaperBlister™ is a simple, streamlined way brands can fully move to eye catching, recyclable packaging without the need for investing in additional capital equipment,” Sanderson says.

By choosing paper products, you’re taking a sustainable path forward that also gives back. When you use paper products, you’re doing your part to help the planet. Because the paper, packaging and boxes you rely on every day can be recycled up to 7 times. In fact, paper is one of the most recycled materials in the U.S., and it comes from a natural and renewable resource—trees. Choosing paper products encourages America’s private forest landowners to grow and maintain healthy forests at a rate nearly double the volume needed to make the products you rely on every day. And that’s something we can all feel good about.

CHOOSE PAPER AND PAPER PACKAGING AND BE A FORCE FOR NATURE

Learn more at howlifeunfolds.com

The Big Idea

Finding Your Dimension X

Why do some people thrive, while others fall behind? As Google’s first chief innovation evangelist, I believe I found the answer: Successful people harness what I call their “Dimension X.” Here’s what it is.

by FREDERIK G. PFERDT

You may have heard this question before: “What advice would you give your 16-year-old self?”

I know this is a popular way to package the “wisdom” of someone with experience or success, and as Google’s first chief innovation evangelist, people asked me this sometimes. But I never got it. Why would I ask my older self what my younger self should have known or done? The missteps I made or the odd turns I took back then are part of who I am now. Offering someone else a road map of my own pitfalls and speed bumps would give them a defensive strategy, at best. No one’s gaining any yards by looking in my rearview mirror.

But I do think it’s useful for people to do a retrospective on their own lives, noting meaningful milestones, because those moments tend to reveal something very important: a personality trait that I’ll call your “Dimension X.” This is your unique superpower—the lens through which you see the world—not as it is, but as you are (to gently paraphrase Anaïs Nin). Over time, your Dimension X becomes a signature reflex that plays an increasingly important role in shaping your future. It’s your through-line response in events that move you forward. And if you cultivate it, it can act like a strong, confident hand on the rudder in your day-to-day decisions and in your overarching narrative.

So how do you know what your Dimension X is?

Here’s what I suggest. Make a map of the milestones in your life, chronologically. Milestones can be momentous events— happy or devastating—that change our lives in an instant.

But they can also take place over a longer period of time. What makes anything a milestone, positive or negative, is the extent to which it precipitated your forward motion. A quick sketch of my own milestones might look like the figure to the right.

THE FIRST THING I notice when I look at these milestones is how neutrally I regard them now. As difficult as, say, my grandfather’s death was for me, when I look at it in combination with other milestone events in my life, I can appreciate that it prompted me to let go of any excuse to move tentatively through my own life. It also triggered an intense need to see myself in the context of the whole world, not just the place where I grew up. When I consider the birth of my first child, I remember great happiness, of course, but also as a new and dynamic factor in my approach to my future. My choices became more complicated and interesting, as I was now thinking about a family instead of just myself. And throughout my milestones map, I can see a particular quality in me that has played a part in either bringing these events about or in coloring my responses to them. This quality—a strong bias for action—is my Dimension X.

It’s a default setting to just go for it, without overthinking or overfocusing on consequences. I believe there’s no such thing as a perfect decision, and most of the time, taking action helps me learn and adapt quickly. This bias toward action also allows me to identify and take advantage of opportunities immediately as they arise. You know the phrase “jump at the chance”? I’m the jumper. Almost every professional and educational opportunity I’ve ever had is a

result of my bias toward action. I applied for more than 60 visiting researcher positions to secure a spot at Stanford. I built the Google Garage without asking anyone for permission. Early in my career, this quality landed me in far-flung parts of the world, doing jobs I’d never considered before. Combined with other dimensions (particularly openness and experimentation), my bias toward action has enabled me to move fast and make choices—often risky ones, and not always successful ones—that have caused me to grow as a person.

SO LET’S create your map. Have a look at your highs and lows. Think about the moments that feel like significant junctures—individual events that caused you to have an emotionally intense response or longer-term developments that marked a turning point or profound learning or growth. These are often not the “big deal” moments you might think they’d be, like a graduation or marriage or promotion. Instead, they might be subtle realizations related to a personal relationship or an occurrence in your life.

On a blank, horizontal piece of paper, draw a line across the

line. Graph five to 10 milestone events across the page and include a brief description under each event.

Now look at the events on your map and consider these questions: Do you recall your state of mind at the time of these events? What actions did you take as a result? Did you take action immediately or did your behavior change over time? What beliefs or assumptions informed these actions? Can you identify something you learned from one event that affected your approach to the next? What was the factor that most influenced your response to these events, or even prompted any to occur?

You will likely spot something like a synapse at the point of your milestones, a connection with a bit of energy around it that indicates the presence of this factor, your Dimension X. Maybe you remember how you made a decision at one of these times. Whether it was spontaneous or deliberate, you had clarity

about your choice. It made sense because this factor was helping you express a truth about who you are and what you believe.

ONCE YOU’VE identified your Dimension X, think of three people who play very different roles in your life—say, a partner or other family member, a colleague, and a friend. Ask them to tell you a story about you, in which they think your Dimension X had an impact. No matter how well you think you know yourself and your own narrative, you will always be surprised and enlightened by the way someone else describes you. You may even discover a milestone or two for your map that you hadn’t thought of.

As you grow more aware of your Dimension X, you’ll find that its power is increasingly accessible to you. It won’t always lead to some dramatic breakthrough or giant success, and it may even lead to failures, but it will always move you forward.

The question I like a lot better than “What would I tell my younger self?” is, “What can I do today to create a new opportunity for myself tomorrow?” The answer is simple: Make just one brand-new choice. Your Dimension X will ensure that your choice is interesting, maybe even a little edgy, but it’s right there with you all the time, ready to nudge you toward the future you’re crafting. It’s your signature, your fingerprint, the singular thing that’s true about you. Use it to make big, bold moves. Use it to make quiet decisions that have far-reaching impact.

Excerpted from What’s Next Is Now: How to Live Future Ready. Copyright © 2024 by Frederik G. Pferdt. Reprinted by permission of HarperCollins Publishers.

→ PFERDT’S MILESTONE MAP

When the Best Way to Hit the Road

When You’re Ready to Go, Here’s the Best Way to Hit the Road

never to an

Owners and are often on the to meet with investors, clients, partners you name it Even small businesses that 50 or fewer average 14 business a year That can add up to a lot of time on the road

Business has never been confined to the four walls of an office. Owners and employees are often on the go, traveling the country to meet with investors, clients, partners … you name it. Even small businesses that employ 50 people or fewer average 14 business trips a year1. That can add up to a lot of time on the road.

Whether you have a drive and don’t want to put the miles on a personal or company car, or just landed somewhere new and need a set of wheels to get around, that rewards you the more you use it. hello to , a program for small- to businesses

Whether you have a long drive and don’t want to put the miles on a personal or company car, or you’ve just landed somewhere new and need a set of wheels to get around, there’s one option that rewards you the more you use it. Say hello to Hertz Business Rewards, a loyalty program specifically designed for small- to medium-size businesses.

Hertz Business Rewards allows to earn credits redeemable toward free rental on car rentals. It also provides benefits such as discounts, free additional driver, waived young driver fee, a discounted Loss Waiver, and more.

Hertz Business Rewards allows companies to earn credits redeemable toward free rental days on eligible car rentals. It also provides benefits such as discounts, free additional driver, waived young driver fee, a discounted Loss Damage Waiver, and more.

“The program aims to save costs, enhance says Rob Pellicer, VP of Commercial and Customer at Hertz Here are some of the many reasons business owners, upper managers, and their managers should

“The program aims to help businesses save costs, enhance productivity, and streamline their travel experience,” says Rob Pellicer, VP of Commercial Strategy and Customer Experience at Hertz. Here are some of the many reasons why business owners, upper managers, and their travel/procurement managers should keep Hertz top-of-mind when they’re ready to hit the road.

Cost savings.

Cost savings

Providing businesses with savings on their rental car usage is a key reason for choosin Hertz Business Rewards, Pellicer says. Through the program, there are several ways to save money:

businesses with savings on their rental car usage is a , the there are several ways to save money:

• on car car rates and receive protection These can help your business within when without comfort

• Exclusive discounts on car rentals. You can save 20% off car rental base rates and receive discounted vehicle protection.2 These savings can help your business stay within budget when traveling without sacrificing comfort and convenience.

Built to save time and money.

Built to save time and money.

that travelers save time and stay focused on

Whether it is the Hertz app for an easy the line on-location, a consolidated solution, or to earn and status for their next a rewards program that makes their travels much more more Business programs and to sign up tools, and

• Free be redeemed toward future free car rental days The more times you reserve a

• Free Day Rewards. Every reservation earns credits that can be redeemed toward future free car rental days. The more times you reserve a car, the more points you get to redeem.

• Enrollment Bonus: Unlock 3X credits first 90

• Enrollment Bonus: Unlock 3X credits during first 90 days.3

• Inclusive and discounted benefits: Hertz Business Rewards offers free additional driver and waives Young Driver fees.

• offers free additional driver and waives Driver fees

• Exclusive promotions and deals. These can help save your company more money and get the most out of your travel budget.

• Exclusive and deals. These can save your company more money and get the most out of your travel budget

Anything that helps travelers save time and stay focused on work is welcome in the world of business. With Hertz Business Rewards, there aren’t just cost savings—there are time savings too. Employees get expedited service and other perks that can help them spend less time dealing with logistical issues and more time focused on their business objectives.

them less time with issues and more time focused on their business objectives

Additionally, management can leverage the Hertz Business Rewards portal to track all rental activity and expenses in one place. “They will be able to track their spend more efficiently and realize the time-saving benefits Hertz offers, such as skipping the counter at select locations and a seamless booking experience through the Hertz app,” Pellicer says.

Employee satisfaction.

place. will be able to track their spend more and realize the benefits Hertz offers, such as the counter at select locations and a seamless the Hertz Pellicer says. satisfaction.

that use Hertz Business Rewards and encourage their employees to take advantage of the benefits, speed, and efficiencies of the program can make travel easier for their Pellicer says appreciate like discounts, and other benefits associated with programs like Hertz Business satisfaction and retention.”

Companies that use Hertz Business Rewards and encourage their employees to take advantage of the benefits, speed, and efficiencies of the program can make travel easier for their employees, Pellicer says. “Employees appreciate perks like upgrades, discounts, and other benefits associated with programs like Hertz Business Rewards, which can contribute to higher job satisfaction and employee retention.”

Whether it is using the Hertz app for an easy booking experience, skipping the line on-location, having a consolidated billing solution, or allowing employees to earn loyalty points and status for their next personal trip, “employees will enjoy the perks of having a rewards program that makes their travels much more enjoyable,” Pellicer says.

Visit Hertz.com to learn more about the Hertz Business Rewards programs and to sign up today.

With Hertz Business Rewards, owners and their employees enjoy discounts, tools, and

Pack These for Your Next Trip

Want to make your next business trip a pleasure? Gear expert and two-time Emmy Award winner Mario Armstrong has five items you’ll want to make room for.

1/ The 2-in-1 thermos.

Here’s how to travel lightly, stay hydrated, and cut down on single-use plastic: Just pack the CamelBak MultiBev [$52; camelbak.com]. The full thermos can keep 22 ounces of water chilled for hours— but the real genius is the lower portion, which screws off as a separate 16-ounce cup. Use it to carry coffee without a paper cup, to brew in your hotel room, or help keep a regular-size can cold. The MultiBev’s two-part lid holds a reusable silicone sipping lid to prevent spills. Unlike those massive, insulated thermoses, this one fits into your car’s cupholder.

2/ Slick surround sound.

Want surround sound to fill a room with music, or to make your presentation audible from anywhere?

3/ To-go espresso.

4/ The sound of sleep.

5

/ The tiny charger.

Pack the svelte Sony HT-AX7

Portable Theater

HT-AX7

Portable Theater System [$500; electronics.sony .com], which creates an envelope of sound with three Bluetooth-connected speakers. Slightly larger than a tissue box, the main wireless speaker’s battery lasts about 30 hours per charge with a pair of 4.8inch wide satellite speakers. The speakers sync together, and you can place them wherever you need to fill a space with robust audio.

If you’re camping (or heck, .just traveling for work in cheap hotels), a decent cup of coffee is hard to find. The solution: Bring the Outin Nano [$150; outin.com], a portable, TSA-friendly brewer weighing just under 1.5 pounds that uses an internal battery to turn cold bottled water into a shot of espresso in three minutes. The kit includes a cup, which you’ll appreciate when your airport hotel doesn’t contain one, and it brews from ground beans or espresso pods. Or bring it to a meeting for an afternoon pick-me-up—the brewing is nearly silent!

From planes to noisy hotels, a good snooze isn’t always easy. Next time, pop in the Soundcore Sleep A20 Earbuds [$150; available late May from soundcore.com]. A silicone earbud and fin fit snugly in the ear, designed to stay comfortable even if you sleep on your side (and they’re also good for regular daytime wear). It passively blocks sound by itself—but if you prefer white noise, you can pick from more than 50 in its app or stream your own. Expect up to 14 hours of runtime when playing sound through the earbuds.

Most portable chargers are for heavy-duty work, and squeeze into the maximum TSA-allowed size of 100 watt-hours. But the Rolling Square TAU 2 [$40; rollingsquare.com] goes small. Its 2.2-by-1.7-inch battery is about the size of a car key fob, with a 2,000-mAh battery to provide 28% to 54% of a phone’s charge, depending on the size— enough to get you out of a dead battery jam. The battery includes a tethered cable to charge just about any small device, and a magnetic dock to make recharging easy. It might even stop you losing your keys!

What SEO Insiders Know

Looking to boost your SEO? We asked a bunch of insiders: What do you know about your industry that most outsiders don’t? by FRANCES DODDS

By now, everyone knows search engine optimization (SEO) is important. If your content isn’t optimized, then your website isn’t being found—which can make or break your business.

But many of us are also keenly aware of what we don’t know. SEO is a complicated industry full of ever-shifting tactics, and even the experts sometimes disagree on what’s best. So we wanted to ask: What do SEO insiders know that we don’t? We gathered their tips, then bounced them off New York Times bestselling author and SEO expert Neil Patel. Here’s what we learned.

1/ Results will vary.

Companies often buy yearlong SEO consulting services and expect a return on investment that’s similar to an advertising campaign, says Pavel Buev, an SEO specialist at SoftSwiss. “But I can say with confidence that no one can guarantee exact success in website promotion,” he says. “Each Google update can completely change the situation for a site.”

Patel agrees: “Forecasts are educated guesses at best,” he says, and you should be ready to adjust along the way. “For example, if certain keywords aren’t performing well in the short term, you can balance this by using paid advertising.” But investing in SEO does pay off in the long run, he says.

2/ SEO hacks are (mostly) over.

Many agencies used to peddle “black hat SEO” tactics—hackerstyle marketing strategies meant to manipulate Google’s rankings, like backlink spamming and fake reviews. In turn, search engines like Google became good at spotting bad actors—and if they catch you doing that stuff they’ll kill your traffic, says Lauren Galvez, a small business SEO expert.

Patel agrees: “Black hat tactics are actually less common than they used to be, because companies learned the hard way that it doesn’t work most of the time.”

When choosing an agency to work with, he says, “Look for companies with awards, a global presence, and a solid portfolio of case studies from current and past clients.”

3/ Online advice is iffy.

Facebook is full of SEO-focused groups, where people swap tips on what works and what doesn’t. Should you check them out? Andriy Shum, head of SEO at SeoProfy, says no. “These threads become echo chambers of shortcuts and tricks that rarely align with sustainable, effective SEO practices.”

Patel is more forgiving. “There are so many Facebook groups about SEO that it’s unfair to dismiss them all,” he says. If you join, he suggests picking ones with very active communities—because people will call out bad advice when they see it. “And remember, just because something works for one website doesn’t mean it will work for another.”

4/ Website accessibility really works.

When people think about SEO, they often think about optimizing content. But according to Dylan Cleppe, CEO of OneStop Northwest, you should also think about accessibility. “This means making websites accessible for people with disabilities such as visual or hearing impairments,” he says. “Like providing text alternatives for non-text content, making navigation possible through keyboardonly commands, and ensuring websites can be fully accessed using screen-reader software.”

Patel agrees. Google prioritizes websites that offer better user experiences, of which accessibility is a part, he says. And he offers a small case study: “After we introduced a ‘high contrast’ option at

the footer of my website, we noticed a slight increase in overall organic traffic.”

5/ AI isn’t a shortcut. Many websites are pumping out AI-written content, thinking it’ll help them in search results. Patel says it won’t. “AI content is just regurgitated information, and search engines want stuff that’s new and fresh,” he says. “We’ve actually seen that if you just create tons of mediocre content through AI, it hurts your site’s overall traffic.”

Ultimately, he says, SEO isn’t about tricks or digital wizardry. It’s just about creating a great user experience—and that’s relatively intuitive. “If your plan puts the user first, you’ll be okay in the long run.”

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Japan

ASIA’S LEADING POST-PANDEMIC ECONOMY

If 2023 marked Japan’s breakout, 2024 could herald the beginning of a decadelong ascent as Asia’s premier investment destination. Clear indicators abound, notably the Nikkei index’s historic surge beyond its late 1980s peak, surpassing 40,000 for the first time in history, alongside a significant rise in wages at major firms—the highest percentage increase seen in 33 years. Equally significant, albeit less apparent, is the 23% discount Japanese stocks offer compared to their US counterparts as the Nikkei index reached 40,000. Additionally, the minimum investment required to trade Japanese blue chips is now approximately oneseventh of what was needed during the Nikkei index’s previous peak. These indicators collectively affirm Japan’s ongoing economic resurgence with promising prospects ahead.

Speaking at the Goldman Sachs Global Macro Conference in January, Prime Minister Fumio Kishida emphasized the significance of investing in Japan in 2024: “Now Japan has a golden opportunity to completely overcome low economic growth and a deflationary environment that has persisted for a quarter of a century. We will demonstrate to all of you Japan’s transition to a new economic stage by mobilizing all policy tools.” Kishida proceeded to outline retail investment, corporate governance reforms, and Japan’s asset management industry as key focus areas. More recently, he has also hinted at plans to introduce “unprecedented tax incentives and support measures for capital investment” to lower barriers to entry.

For businesses, Japan’s robust talent pool, high productivity in technologyrelated sectors, and advanced manufacturing capabilities present an unparalleled opportunity in Asia. Furthermore, Japan’s regulatory framework offers a variety of pre-existing avenues for exploration. These include the Regulatory Sandbox, established in 2018 to expedite cross-sector innovation and help entrepreneurs test products in a live market environment. Additionally, the Digital Agency fosters public-private collaboration and facilitates digital transformation (DX), propelling

D.Nagata

Japanese craftsmanship is prized for its meticulous attention to detail and unique blend of traditional techniques with cutting-edge technologies. And for good reason: Japanese technicians and associate professionals’ vocational skills were found to be the best in the world, according to the latest Global Talent Competitiveness Index (GCTI).

These proven strengths have established Japan as a prestigious manufacturer of auto parts, with the export market alone valued at around JPY 3.85 trillion, according to Statista. Through continuous innovation and a reputation for reliability, Japanese part exporters have cemented themselves in key markets such as North America.

One such company is D.Nagata, a supplier of high-performance engine and motorcycle engine components to the USA and Europe.

D.Nagata’s history stretches back to 1879, when it began manufacturing bamboo fishing poles. After moving production to Taiwan in the 1970s, the company pivoted to domestic industrial engineering in the 1980s, specialising in R&D for engine-related equipment and components. Most notably, it was one of the first Japanese players to transfer its domestic success to the US market, catering to demand for traditional 2-cycle engine and motorcycle engine technology.

Today, D.Nagata’s product line-up encompasses everything from automotive engine and transmission components – electronic and mechanical – to industrial and agricultural equipment, specialty vehicles, and petrochemical products. D.Nagata also imports defence parts for domestic clients, including the Japanese Ministry of Defence, as part of a highly successful venture run by an all-female team.

By partnering with US firms, D.Nagata and Nagata Technology Chicago

companies into emerging 4.0 verticals.

The semiconductor industry stands out as a key beneficiary of Japan’s economic resurgence, with the government striving to position it as a global leader in chip manufacturing. Notably, Japan has already attracted industry giants such as TSMC – the world’s largest chipmaker – and Samsung Electronics.

Fumio Kishida Prime Minister of Japan

Takahisa Amemiya, CEO and president of FICT, a leading semiconductor package substrates manufacturer, underscores the government’s enthusiasm: “The government is excited about the semiconductor supply chain’s growth. There are numerous examples, from TSMC establishing a subsidiary in Kumamoto Prefecture and recently announcing plans to open a factory here, to IBM transferring technology to a Hokkaido-based company. All of these initiatives were incentivized by the Government of Japan.”

Another catalyst for dynamism is the government’s ambitious goal of achieving net zero emissions by 2050. Japan has committed JPY 2trillion over the next decade to finance innovations in renewable energy, energy efficiency, and cleaner sources, while also outlining a roadmap for international collaboration. Additionally, Tokyo and several other major cities have positioned themselves as global hubs where sustainability investors can discover new opportunities within Japan’s cutting-edge environmental technology ecosystem. To enhance the momentum of the green transformation (GX) initiative, the government is introducing Economy Transition Bonds, totaling JPY 20 trillion, marking the world’s inaugural issuance of such bonds.

As the government unites the resurging economy towards its steadfast vision of prosperity, one undeniable truth emerges: Japan stands at a pivotal historic turning point, poised for unprecedented growth and opportunity. With bold initiatives driving innovation and investment across sectors, Japan is primed to lead Asia into a new era of economic prominence.

have positioned themselves at the cutting edge of the industry. “We have to be doing something different all the time,” explains D.Nagata’s president, Yosuke Nagata. “We’re currently supplying engine components and technologies to US companies; our business is growing.” As part of his relationship-building strategy, Nagata reveals he visited 49 US states; today, the company boasts a nationwide network in the USA. Going forward, Nagata is confident more overseas partnerships will help unlock its full potential. “We’re open to any partnerships abroad, with a focus on finding companies we can trust and who share our philosophy.”

Yosuke Nagata President

Aside from global partnerships, Nagata credits the dedication of D.Nagata’s talented employees as a defining factor in its success. By encouraging them to think outside the box, D.Nagata can develop unique, customer-orientated products at rapid speed. “We used to be in fishing poles, then we switched to engineering. We’re constantly changing and innovating. Escape from the ordinary – that’s our mission,” says Nagata.

Above all, D.Nagata embodies the Japanese spirit of craftsmanship. More specifically, it represents how companies are reimagining it for the modern, globalised era. For Nagata, the appeal is simple: “You can trust Japanese companies. We’re reliable, and you know what you’re getting.”

Mizuho Leasing

EMPOWERING GLOBAL GROWTH THROUGH STRATEGIC PARTNERSHIPS

Consumer confidence in Japan has shown a notable rebound, evidenced by the Cabinet Office’s official index reaching 38.0 in January 2024. This marks a significant increase from the previous year’s figure of 31.3 and nearly doubles the index of 22.1 recorded in April 2020 during the COVID-19 pandemic.

Anticipated to be a pivotal economic driver this year, domestic spending is poised to fortify Japan’s expansive and progressively international financial services sector. According to McKinsey, banks made a substantial contribution of $180 billion to the economy in 2022. The consultancy suggests that there is potential for an additional $45 billion contribution if banks focus on “developing their roles in service of national growth.”

Akira Nakamura President and CEO

Mizuho Leasing, established in 1969 under The Industrial Bank of Japan (now Mizuho Financial Group) as Pacific Lease, rebranded to Mizuho Leasing Company Limited in 2019, marking a pivotal moment towards global recognition. Listed on the First Section of the Tokyo Stock Exchange since 2005, it has experienced exponential growth, fueled by investments from Mizuho Financial Group (MHFG) and Marubeni Corporation in March 2019. Mizuho Financial Group’s 23% stake acquisition and Marubeni’s strategic partnership have propelled its domestic and international expansion. Leveraging Mizuho’s credibility and Marubeni’s global network, Mizuho Leasing aims to solidify its leadership in financial services worldwide.

“In the fiscal year 2022, spanning from April 2022 to March 2023, we achieved a record net income of JPY28.4 billion,” states Akira Nakamura, President and CEO of Mizuho Leasing. “This remarkable achievement can be attributed to two primary factors. Firstly, our affiliation with MHFG in 2019 significantly expanded the diversity and volume of business opportunities available to us. Combined with our dedicated efforts to enhance profitability, this enabled our company to achieve dramatic growth at an unprecedented pace. Secondly, our success is rooted in the steady implementation of initiatives tailored to meet the strategic business and financial needs of our customers. By capitalizing on our leasing company’s high degree of flexibility, we have been able to provide innovative solutions that address their requirements.”

Mizuho Leasing is uniquely positioned to leverage both Mizuho Financial Group’s extensive customer base—one of the largest in the world—while also capitalizing on the well-known and highly-respected Marubeni brand. The backing of these two large groups empowers the leasing company to extend significant capital and financial power to its customers, further solidifying its position as a leader in the industry.

Mizuho Leasing’s operations encompass various business sectors, enabling it to cater to companies across the entire economic spectrum. Collaborating with MHFG companies, Mizuho Leasing offers not only conventional finance solutions like leasing and mezzanine loans, but also a diverse range of services. These include business investments, operational support, asset ownership agreements, and subscription-based as well as XaaS services. By extending its offerings beyond the conventional capabilities of the banking group, Mizuho Leasing provides comprehensive and tailored solutions to meet the diverse needs of its clients.

Mizuho Leasing has earned acclaim for its approachability and competitiveness, both core principles of its business ethos. Leveraging extensive experience, robust financial backing, a diverse portfolio of business lines, profitability, and adeptness in seizing emerging opportunities, Mizuho Leasing stands as an ideal finance partner for businesses globally. Moreover, the company has strategically pursued international mergers and acquisitions in recent years, expanding its business base and global presence while sharpening its competitive edge in the industry.

The Marubeni alliance, launched in 2019, actively fosters overseas-focused joint ventures. These ventures, including the US aircraft leasing business Aircastle Limited, and US refrigerated trailer leasing and rental business PLM, have significantly broadened the company’s overseas operations, particularly in North America. Through its Group company, Mizuho Marubeni Leasing, Mizuho Leasing

has collaborated with the US sales finance company Auxilior Capital Partners, Inc. to enter the American vendor finance market. Nakamura noted, “We are open to any form of partnership, depending on the areas of focus and the products and services offered by potential partners.” Their most recent collaboration took place in June last year, acquiring a 51% stake in Rent Alpha, and subsequently increasing that stake to 54% in October. Currently, they are successfully collaborating with local partners, and the business is thriving. Rent Alpha stands out as one of India’s premier equipment leasing businesses by market share, providing Mizuho Leasing with a strategic entry point into India’s rapidly growing market. This acquisition adds to Mizuho Leasing’s series of strategic investments, including stakes in Australia’s Affordable Car Leasing, Vietnam International Leasing Co., and Japanese renewable energy provider Eco Style, among others. This ongoing M&A activity continues Mizuho Leasing’s tradition of expansion through strategic acquisitions, building upon a history that includes notable investments such as Nissan Leasing (1999), Daichii Leasing (2006), and a series of equity interest deals in March 2020 that initiated the joint operation of overseas asset financing business with Marubeni.

As Mizuho Leasing is currently experiencing a phase of robust growth, Nakamura underscores the company’s potentialities for further expansion. “We have a lot of potentialities which we can grow much further. In comparison with other competitors, our asset volume remains relatively lower, signaling significant growth potential and a notably high rating.” Guided by its MediumTerm Management Plan 2025, the company is committed to transitioning from a leasing company to a comprehensive multi-solution platform that addresses both business and social challenges. Looking ahead, he elaborates on the company’s midterm and long-term plans: “We have divided our business portfolio into three areas based on growth horizon: core, growth, and frontier. In the midterm, we are looking to invest in businesses and assets with long-term growth potential. By cultivating and nurturing these young businesses, the growth and frontier fields will flourish into major pillars of revenue for our company in the future. In the long run, we can further develop and move into asset management business as well as non-asset management business. We have a lot of business opportunities which we haven’t even touched yet.”

Key areas of growth include renewable energy, where Mizuho Leasing aims to secure 1 gigawatt (GW) of generation capacity by the end of FY2025. Expansion efforts will encompass core, growth, and frontier business areas, supported by a secure financing platform. This platform comprises a blend of indirect financing from over 100 financial institutions and direct financing, including bonds.

As an equity affiliate of Mizuho Financial Group, Mizuho Leasing has garnered recognition for its financial strength and stability. It was upgraded to AA- by the rating agency JCR in October 2023 and received a similar upgrade to AA- by R&I in January 2024, underscoring its strong position in the market.

These strengths underscore the global influence of Japanese corporations, as well as the country’s inherent competitive advantages.

“Foreign investors are one of the reasons why Japanese equities are currently experiencing such high levels and continuing to rise,” says Nakamura. ”The increasing interest in and perception of Japanese companies among foreign investors leads to a surge in capital inflows, creating a positive feedback loop. Moreover, amidst a weak yen environment, Japan’s geopolitical stability significantly influences investors’ decisions, particularly when compared to other major powers in Asia like China. In Japan, the burgeoning number of innovative startups is noteworthy. These startups leverage the financial robustness of large corporations with strong corporate earnings to accelerate their growth, while large companies are engaging in M&As with startups as a strategic method to foster new businesses. This trend is expected to persist well into the foreseeable future.”

Aisan Industry

DRIVING INNOVATION AND SUSTAINABLE GROWTH

Eclipsing its previous peak during the bubble economy 34 years ago, Japan’s Nikkei 225 index soared to a new record-high of 39,098.68 on February 22. This meteoric rise, fueled by a confluence of factors including a weakened yen, reflects a seismic shift within Japan’s business landscape. According to the Financial Times, Japanese corporate earnings have nearly tripled since the bubble era. This remarkable growth can be attributed to the concerted efforts of listed companies, who have diligently focused on enhancing their ROI, operating margins, and asset efficiency. As a result, a new era of prosperous shareholder returns has been ushered in, promising sustained growth and stability in Japan’s evolving economic environment.

Renowned for their commitment to innovation, unwavering reliability, and dedication to perfection, Japanese car manufacturers consistently dominate global best-selling models rankings. Fueling their success is a prestigious network of auto parts manufacturers adhering to ‘monozukuri’ principles, which blend traditional Japanese craftsmanship with cutting-edge mass production techniques. Thanks to their unparalleled product quality, these suppliers experience robust global demand. In fact, according to Statista, the value of auto parts exported from Japan reached an impressive JPY 3.85 trillion in 2022. Today, these manufacturers play a pivotal role in advancing Japan’s— and the world’s—decarbonization efforts by aligning with automakers’ electric vehicle strategies, thereby contributing to a more sustainable automotive industry landscape.

Established in 1938, Aisan Industry stands as a premier monozukuri manufacturer specializing in engine components, with a focus on fuel pump modules, throttle body products, and environmental technologies. Aisan commands an impressive 40% share of the global powertrain parts market within the fuel pump segment, a testament to its exceptional quality and reliability. Its products are seamlessly integrated into one-third of all cars worldwide, showcasing Aisan’s unparalleled reach and influence in the automotive industry. This achievement is made possible by its extensive network of 29 international

cell electric vehicles (FCEVs). Additionally, Aisan’s commitment to enhancing automotive performance and sustainability is exemplified by products like the Exhaust Gas Recirculation (EGR) Valve, which not only increases fuel efficiency but also purifies exhaust gas emissions.

Moreover, Aisan’s Fuel Pump Modules (FPMs) feature an eco-friendly design without rare metals, promoting fuel efficiency. The company also uses advanced environmental tech for charcoal canisters meeting strict regulations in Europe and the USA.

In terms of Aisan’s overall net sales for FY23, FPMs accounted for 41%, demonstrating their significance in Aisan’s product portfolio. Additionally, EGR valves, which enhance fuel efficiency and reduce emissions, constituted 9% of Aisan’s net sales, underscoring their pivotal role in supporting the company’s diverse product offerings and market presence.

With an extensive catalogue of star products and a high level of monozukuri, Aisan has achieved remarkable growth in recent years. For instance, in the nine months ending December 31, 2023, the company increased its net sales by 35.4% year-over-year (YOY) to JPY 233.4 billion and its ordinary profit by 52.6% YOY to JPY 15.9 billion. Additionally, Aisan’s share price reached a record high at the end of February, reflecting a 66.5% increase over the previous 12 months.

Aiming for their targets, in March 2024, Aisan plans to achieve JPY 280 billion in net sales and an 8.0% ROE, with a payout ratio of 30%+ for shareholder returns. In preparation for the future landscape of their business, the company adopted a ‘two-axis strategy,’ leveraging existing strengths while venturing into new areas. This includes expanding its current business and utilizing proprietary technologies to enter new domains such as next-gen fuel products (like synthetic biofuel), cell cases and covers for lithium-ion batteries, and non-mobility outputs like renewable energy infrastructure. This strategy aligns with Aisan’s ambitious VISION 2030 initiative aimed at realizing a decarbonized hydrogen society.

Nomura discloses that Aisan has invested JPY 8.5 billion in constructing a cutting-edge manufacturing plant for mass-producing next-gen, elite components. “The new facility adopts a novel approach to product creation, blending robotics and human workers in a collaborative effort.” Additionally, Nomura expresses eagerness to collaborate with Japanese partners to enhance Aisan’s presence in European and US markets.

companies spanning across Europe, Asia, the USA, and Mexico, reinforcing Aisan’s position as a global leader in engine component manufacturing.

According to Aisan’s president, Tokuhisa Nomura, a fundamental pillar of the company’s success lies in its distinctive approach to product development. Unlike conventional methods solely driven by customer requests, Aisan adopts a proactive stance by actively suggesting and receiving feedback from clients. This collaborative process ensures continuous advancement beyond initial specifications, keeping Aisan at the forefront of automotive innovation and industry trends. Moreover, this forward-thinking perspective extends throughout the entire supply chain, with a steadfast commitment to delivering higher-quality products across all facets of production.

A prime example of Aisan’s innovative approach is evident in its hydrogen fuel supply systems, which capitalize on the company’s expertise in internal combustion engine (ICE) vehicles to develop highly efficient units for fuel

“We’re receptive to engine-related M&As and joint ventures with global key players,” he emphasizes. The timing is opportune as Aisan has recently acquired Denso’s fuel pump module, poised to unlock fresh sales opportunities with overseas OEMs.

Nomura forecasts that JPY 28 billion of the anticipated JPY 60 billion annual sales for this new venture will originate from the USA. Ultimately, Aisan aims to revolutionize the global auto parts ecosystem. “Our ambition is to consolidate international manufacturing competitors into our company, expanding the market and establishing a hub of producers,” explains Nomura. In doing so, Aisan embodies Japan’s automotive industry’s competitive spirit and its renewed readiness to tackle new challenges abroad. Whether leading the industry during the golden era of the internal combustion engine (ICE) with carburetors in the 1950s or the 1980s with electronic components, Aisan has consistently been a driving force in Japan’s global expansion, and today is no exception. With its strong financial performance, innovative product portfolio, and ambitious growth strategies, Aisan presents an unparalleled opportunity for investors seeking to capitalize on Japan’s dynamic automotive industry and its trajectory towards a sustainable future.

Tokuhisa Nomura President

LIKE PIONEERING SOLUTIONS TO JAPAN’S SOCIAL ISSUES

Driven by higher prices and a 10% increase in tourist spending compared to 2019, corporate Japan’s profits surged in the April-December 2023 period.

Approximately 61% of the 270 Prime market companies that published results reported a year-over-year rise in net profit, the second highest percentage over the past decade. At the same time, share buybacks expanded to a record USD 65 billion, according to Nikkei Asia, contributing to a remarkable rise in stock prices.

The key to maintaining these results will depend upon Japan’s management of various demographic trends, notably an ageing population, a falling birth rate, and a declining workforce. Sectors such as nursing care, childcare, and recruitment are thus experiencing a rapid growth in demand. In 2021, for example, the number of people requiring longterm care exceeded 6.8 million, up from 5.3 million in 2012, according to Statista. Likewise, in 2019, the occupancy rate for serviced residences for older people rose to 92%, much higher than rental housing at 82%. Daycare is another area of high investment, as the government aims to build a supportive environment for full-time, two-income households who want to have children. By FY26, it plans to spend JPY 3.6 trillion annually to be on par with childcare leaders like Sweden.

Yasuhiko Okamoto Group CEO

Established in 1993, LIKE Group is leading Japan towards a brighter future by leveraging the opportunities offered by its demographic challenges. Through a quality-focused approach to childcare (‘LIKE Kids’), nursing care (‘LIKE Care’), and a unique range of recruitment and Human Resources services (‘LIKE Staffing’), LIKE has positioned itself as a business for every stage of life.

Founded by entrepreneur and CEO Yasuhiko Okamoto, LIKE is the result of an idea he had for a new kind of Human Resources firm whilst operating mobile phone stores. Okamoto recalls: “Whilst the mobile phone business was profitable, our small size prompted us to shift to the human resources sector. The transition stemmed from my realisation that the quality of service in mobile phone stores was subpar and could be improved.” Back then, what differentiated Okamoto’s Human Resources firm was its focus on cultivating transferable and vocational skills in prospective employees before matching them to clients. Today, the company

follows

Both LIKE’s childcare and nursing care businesses are

to answer

social issues. Okamoto explains how the company’s decision

to diversify into these two sectors stemmed from the absence of government support for working mothers. “At the time our company was founded, about 70% of the workforce is women, and most of them were leaving their jobs to raise children, so we stepped in. Coincidentally, shortly after we entered into childcare, the government began providing aid, facilitating our expansion.” In total, LIKE now operates around 400 nurseries, each run by an independent management team providing high-quality services. In collaboration with companies, universities, and hospitals, LIKE has also opened on-site childcare facilities to improve accessibility for working parents who cannot find a place in public nurseries.

Similarly, Okamoto reveals that nursing care appeared on his radar when he noticed a lack of specialised support for older people and the impact that was having on careers. “We recognised that many women were also quitting their jobs to care for ageing parents. I personally encountered challenges finding suitable nursing homes for family members with conditions like dementia.” Inspired by his experience, Okamoto says the company began operating long-term care facilities that also catered to individuals with illnesses such as dementia. Each of the LIKE’s 25 facilities is equipped with 24-hour, 365 days a year, professional medical care in partnership with leading medical institutions and is designed to offer a serene and peaceful environment for residents to enjoy their later years.

Reflecting on the success of LIKE’s business model, Okamoto says the company is open to partnership opportunities to take it to the next level, having already expanded services to Vietnam. “Our partnership strategy varies by country. Joint ventures can be challenging to establish in local markets, so we also offer

intellectual property, knowledge, and consultancy services. I believe in long-term alliances rather than one-time exchanges; collaboration for an extended period allows us to grow together and reap greater financial rewards. We pride ourselves on being fast decision-makers.”

With further international expansion on the horizon and ever-expanding demand at home, Okamoto also invites investors in the company’s stock. A key driver of future growth will be LIKE’s planned expansion to after-school care services for children, whilst the company continues to add more than 20 new childcare facilities each year. “We’re mainly targeting the Asian market; we believe our growth will benefit both investors and global society in the long run.”

Indeed, for Okamoto, LIKE has always been a stepping stone towards a better future for all. And by investing in people to drive solutions to Japan’s economy, he hopes to change the narrative and place the spotlight back on Japan’s strengths as a business powerhouse: “I want people to view Japan as more than its culture; we possess significant business expertise that sets us apart globally.”

the same philosophy, for example, offering a programme to train mobile phone salespersons; graduates are then dispatched to phone carrier shops or home appliance mass retailers.

designed

Japan’s emerging

Kakuichi

NANOTECHNOLOGY AND NEW MECHANISMS FOR SUSTAINABLE AGRICULTURE

With population growth and climate change looming, sustainable agricultural production has never been more important. Conventional agricultural technologies are reaching their limits and new innovations are required.

Kakuichi is a company that manufactures and sells products that contribute to agriculture in the field of water, a simple but indispensable part of global agriculture, by introducing effective irrigation with hoses and making changes to the soil with nanobubble technologies.

Kakuichi has played a leading role in supporting the development of Japanese agriculture for nearly 140 years, and is perfectly placed to help drive ongoing efforts to strengthen technology and sustainability.

One of Kakuichi’s innovative solutions to agriculture is a “nanobubble generator” that generates nanobubbles in water. Nanobubbles are very small bubbles with diameters ranging from a few nm to 1000 nm (1 μm). These microscopic bubbles can exist stably in water for long periods of time and promote the penetration and diffusion of substances. Kakuichi’s system allows for the gas to be changed as well as the concentration of gas to be adjusted according to the application, making more effective.

While the idea is simple - to change the nature of water for agricultural irrigation into the soil and crops - it is extremely difficult to establish in agriculture. Kakuichi, together with 1200 farmers throughout Japan, has continued to verify this technology and improve the equipment, accumulating data on the effective use of nanobubbles in the agricultural field.

“Having been involved in the nanotechnology business in the agricultural sector since 2016, we now feel that this technology has the potential to make agriculture more resilient to global warming, reduce environmental burden and resolving food selfsufficiency issues under population growth in the future,” Tanaka says.

There are many abandoned fields and orchards in Japan due to excessive fertiliser use. Many farmers have irrigated fields that had previously failed to yield and produce superior crops despite their efforts with nanobubbles, and have been able to produce normal fruit and crops. This not only supports the expansion of limited agricultural land, but also leads to food security through the re-use of abandoned land.

Access to water is essential to maintain and restore agricultural production, and Kakuichi is contributing to rapid

irrigation through the provision of hoses. In addition, joint research has been initiated in rice cultivation in the Mekong Delta for the efficient use of fertilisers and pesticides through the introduction of nanobubble technology.

Climate warming is making conventional agricultural cultivation more difficult. In Japan, the concentration of dissolved oxygen in hydroponic cultivation in summer drops significantly, causing root rot and making the cultivation of crops extremely difficult. Appropriate control of dissolved oxygen in the water according to crop and water quality has led to a reduction in crop losses during the summer.

Kakuichi’s nanobubble irrigation is also helping farmers recover from flood damage and reduce the risk of disasters caused by extreme rainfall and temperature fluctuations, supporting agriculture in the face of climate change.

While flooding is common in Japan, summer droughts are severe and monsoons and heat waves have become more frequent in recent years.

Acidification of the soil due to flood damage inhibits soil biological activity and delays soil recovery. Kakuichi’s nanobubble technology can provide oxygen to the soil for a longer period of time by sequestering oxygen in nanobubbles, thereby promoting soil recovery.

Controllable irrigation and controlled oxygen levels can reduce damage to crops and fruit trees caused by lack of water, such as root rot, wilting, deformation and fruit failure, and stabilise yields.

For environmental issues, joint research with a university reported that in black box soil, irrigation with oxygen nanobubbles promotes the ionisation of calcium and iron, while inhibiting the ionisation of aluminium.

The company’s nanobubble irrigation makes phosphoric acid fixed in the soil more soluble than normal water, leading to more efficient fertiliser application and reducing environmental impact.

The company is also currently conducting joint research with a tea manufacturer in a Japanese tea plantation to develop technology to suppress the production of nitrous oxide, which has a greenhouse effect 300 times greater than carbon dioxide.

Kakuichi was founded in 1886 by Riu Tanaka’s greatgrandfather; he is the fifth generation in his family to run the business. The company started selling farming hardware in Nagano, Japan. At the time, agricultural tools were transitioning from wood to steel, and the company’s mission was to produce metal equipment in a cost-efficient way.

The catalyst for Kakuichi’s business leap forward was the spray hose for agricultural use. Kakuichi’s high-pressure durable

Riu Tanaka President and CEO

hoses helped the company expand overseas, setting up a manufacturing plant in the US and growing to become one of the top producers of agricultural irrigation hoses in the world. Later, Kakuichi began manufacturing and selling large agricultural warehouses to protect farmers’ crops and machinery from the damage of earthquakes and tsunamis, creating Kakuichi’s current core business.

Tanaka himself became president three years after the Great East Japan Earthquake and tsunami, a milestone event which convinced him of the need for stronger decentralised networks that support a society in which every individual can achieve their potential.

At the time of the earthquake, Kakuichi was a wellestablished company with a long history and a stable financial base, but was unable to change despite the changing world. In such a critical situation, Riu Tanaka decided to take the helm as a representative, saying that the company would not survive if it did not change.

Having become acutely aware that it was essential to build a decentralised, self-reliant energy system, Tanaka made a major

shift to the environmental business.

Tanaka continued to ask himself, “What is essential for people now?” As a result, he came to the conclusion that the most

We are constantly creating and acting on new technologies and products,” says Tanaka. “Entrepreneurship is in our DNA and spirit. We are always creating new technologies and products and acting quickly. We have a long history. This does not mean that we have kept the same style and done nothing different. We have been able to survive because each time we have broken old forms and created new ones to create value.”

The company wanted to return the profits from renewable energy business to the farmers and create a technology that could provide something of value to the world, which led it to the nanobubble business.

“That is why we want to spread this technology around the world,” Tanaka says. “We are always looking to partner with people with an entrepreneurial spirit that is mutually beneficial, beneficial to everyone and, most importantly, gives back to society. We have a wide and diverse range of research and we value sharing our intelligence. We have technologies and patents that we can share with the world. We are looking for partners to share our intelligence and technology and to conduct research and development for technological breakthroughs.

important things are the importance of communities where people help each other, food and trust. This became the driving force behind the creation of a series of new businesses. Kakuichi will use nanobubble technology to help solve three key social issues facing agriculture: food security, climate change and environmental issues.

The Japanese are known for their seriousness and diligence, and boast unique technical skills developed over many years of research and development. Our meticulous attention to detail and precision technology form the basis of Japanese manufacturing. Although challenges still exist, such as information and language issues, Kakuichi is a long-established venture company that has always taken on new challenges. It is a company that creates new value through human connections. Nanobubble technology is one of the technologies that originated in Japan with potential to be utilised in various fields. We believe that innovation is born from new cultural exchanges. We invite you to visit Japan. Please visit our hotels and factories and experience Japanese food and manufacturing technology. We look forward to welcoming you to Japan.”

Irrigation using Kakuichi’s agricultural irrigation hose Portability, ease of operation, terrain adaptability, low cost Irrigation system design can be tailored to local needs

Solar-powered nanobubble generator Device that generates electricity from sunlight and irrigates open-air irrigation.

Nikken Sekkei

PIONEERING EXCELLENCE IN GLOBAL ARCHITECTURE AND URBAN DESIGN

Japan’s meticulous attention to detail extends across diverse sectors, from electronics to robotics engineering and architecture, establishing the nation as a global leader in innovation and excellence. Rooted in concepts like Kaizen for continuous improvement and Kodawari for the relentless pursuit of perfection, Japan’s cultural ethos has underpinned its extraordinary accomplishments. This dedication to precision and innovation extends seamlessly into the realm of architecture and design, where Japanese firms like Nikken Sekkei have made significant contributions. The resulting discipline, precision, and unwavering pursuit of excellence consistently elevate Japanese architectural designs and urban planning above the competition in the eyes of international clients and project users.

Atsushi Omatsu President and CEO

Japanese architecture firms harmoniously blend tradition and innovation. From traditional wooden structures to avant-garde urban landscapes, Japan’s architectural narrative reflects its socio-economic evolution and sets global benchmarks for design excellence. With the highest representation in the prestigious Pritzker Architecture Prizes, Japan’s influence on shaping new design paradigms for society is unparalleled, showcasing its unwavering focus on architectural innovation and leadership.

Established in 1900, Nikken Sekkei stands as the world’s fifth-largest architecture firm in 2024 according to BD World Architecture magazine, leaving an indelible mark on modern Japanese architecture. From the iconic Tokyo Tower to the towering Tokyo Skytree, which holds the distinction of being the world’s tallest free-standing broadcast tower, Nikken Sekkei’s portfolio boasts groundbreaking structures renowned for their cutting-edge design, engineering excellence, and profound societal impact. Beyond architectural marvels, the firm offers a comprehensive suite of services encompassing interior design, urban planning, landscape architecture, structural engineering, MEP engineering, civil engineering, and computational design & BIM. This multifaceted expertise underscores Nikken Sekkei’s pivotal role in shaping the built environment, both in Japan and on a global scale, as it continues to push the boundaries of innovation and design excellence.

Over the past century, Nikken Sekkei has played a significant role in Japan’s modernization. In 1904, the firm completed the first full-scale library in Osaka, facilitating knowledge sharing with the West. Later, its design of Osaka North Port boosted commerce and international trade. During the post-war economic boom, Nikken Sekkei pioneered large-span steel structures for offices, entertainment centers, and cultural hubs. In the 1970s, it master planned terminal buildings for major international airports like Kansai International Airport, supporting Japan’s globalization efforts. From the 1990s, Nikken Sekkei has distinguished itself by designing life-enriching urban outdoor spaces that are seamlessly integrated with existing infrastructure. These spaces not only enhance thequalityoflifeforresidentsbutalsoshowcasethefirm’sdedicationtosustainable urban development and community well-being.

Today, Nikken Sekkei’s commitment to creating captivating social environments is evident in various projects, including the PPP redevelopment of MIYASHITA PARK in Shibuya, where infrastructure like parks and parking lots harmoniously integrate with the city to provide public space and mixed-use functions—a prime example of organically linking urban elements for attractive living environments. This commitment is further demonstrated by the firm’s Transit Oriented Development (TOD) projects, where transport infrastructure cohesively merges with mixed-use

facilities. “Since 2000, we’ve undertaken numerous TOD projects aimed at revitalizing the vicinity of major train stations. Many of these areas were once traditional towns, but through our involvement, they have been transformed into modernized, expanded, and vibrant spaces. We strive to innovate and create designs that push the boundaries – that’s our competitive edge in Japan,” reveals Nikken Sekkei’s President and CEO, Atsushi Omatsu. He further emphasizes, “The key to our success lies within our talented workforce. Whether it’s technology or design, we ensure that we have the skilled professionals to tailor solutions to meet our clients’ needs.”

Having refined its TOD expertise in Japan, Nikken Sekkei now undertakes similar projects worldwide. One standout instance is the award-winning Suzhou Center in Jiangsu province, China, integrating high-grade offices and premier shopping with Suzhou’s subway transit network. Additionally, in 2022, Nikken Sekkei clinched the design competition for China’s next-generation transport hub, Shenzhen Xili Station TOD. Their winning proposal introduces the innovative ‘TOD 4.0’ concept, harmonizing the station, city, people, and nature seamlessly.

Lookingahead,Omatsuisenthusiastic aboutbroadeningNikkenSekkei’sglobal portfolio through strategic partnerships. “In the long term, we want to continue to engage in collaborative projects. From our experience in overseas ventures, we’ve recognized the significant impact of having local partners.” Leveraging its robust talent pool, Nikken Sekkei is poised to deliver optimal solutions to address both existing and evolving social needs, spanning interior design to civil planning.

Additionally, with a global network of offices spanning Europe, the Middle East, and Asia, Nikken Sekkei is positioned as the premier partner for a diverse array of international projects. The company recently achieved a milestone by completing the iconic Saudi Stock Exchange Headquarters, Tadawul Tower, a centerpiece of Saudi Arabia’s King Abdullah Financial District. Furthermore, it has been chosen to redesign the renowned stadium Camp Nou in Barcelona for FC Barcelona. Notably, Dubai’s One Za’abeel stands as one of Nikken Sekkei’s most celebrated recent international projects. Spanning two plots separated by a highway, the project’s dualskyscrapersareingeniouslylinked100metersabovegroundlevelbyTHELINK, an astounding 230-meter horizontal floating structure with the world’s longest cantilever.

Nikken Sekkei’s highly regarded fusion of modern design and Japanese architectural traditions distinguishes the firm within a highly competitive market. Expertise in niche areas like stadium facilities and supertall buildings reinforces its trusted partner status. Renowned for sustainability, Nikken Sekkei transformed Mizunami Kita Junior High School into Japan’s first certified zero-energy school. Omatsu emphasizes, “We’ve always been at the forefront of tackling social and environmental issues,” reflecting Nikken Sekkei’s ongoing dedication to addressing critical global challenges.

As Nikken Sekkei nears its 125th anniversary in 2025, it epitomizes innovation and cultural identity, embodying Japan’s craftsmanship ethos. With a rich legacy spanning architecture to urban planning, Nikken Sekkei consistently pushes design boundaries, leaving an indelible mark on Japan’s modernization. Internationally, its expertise and commitment to sustainability solidify its role in shaping iconic landmarks and sustainable urban environments. Synonymous with cutting-edge design and meticulous attention to detail, Nikken Sekkei remains a global leader in architectural innovation, poised to inspire future generations.

MIYASHITA PARK Photo by Nacása & Partners Inc.

One Za’abeel Photo by Koji Horiuchi

Optimus Group

THE JAPANESE AUTO EXPORT CHAMPION EXPANDING INTO AUSTRALIA

Fuelled by three consecutive fiscal years of record-high combined net profits at major Japanese firms and underlined by long-term trends such as the return of inflation, Japan’s benchmark Nikkei index has finally surpassed the milestone 40,000 mark – an all-time high. Importantly, there are many signs the bull run will continue. For example, as highlighted by Nomura Asset Management, the price-to-earnings ratio of the index currently sits at just 16 times, down significantly from 60 times during the last peak in the 1980s. According to the firm, the high ceiling for growth means the Nikkei index could reach 47,000 by March 2025.

One of Japan’s most investable sectors is its automotive industry, the world’s leading car exporter. Reputed for their reliability, innovative design, and advanced technology, Japanese cars are highly sought after worldwide, making the country a hub for used car dealers, who exported a staggering 1.22 million units in 2021, according to Statista. In recent decades, Japan has become the dominant exporter to import-only automotive markets, such as Australia and New Zealand. As all three countries use a left-hand lane/right-side driver configuration, Japanese used car dealers enjoy a significant competitive advantage over their European and North American rivals.

Nobuya Yamanaka President and Founder

One of the most successful of these is Optimus Group Co., Ltd. (TSE: 9268), a leading exporter and service provider to the automotive industry, founded in 1988. Optimus Group provides a wide range of integrated automotive services, including procurement and vehicle sanitation for plant quarantining, shipping, vehicle inspection, and financing. The Group registered net sales of JPY 54.95 billion in FY23.

of brand-new Japanese cars,” explains Mr. Yamanaka, who is himself a car enthusiast and gentleman racing driver, having raced at the prestigious 24 Hours of Le Mans in 2020.

According to Mr. Yamanaka, the key to Optimus Group’s success lies in its vertically integrated business model. “We’re developing the company in a unique style to ensure synergies between all our businesses,” he says. Optimus Group’s streamlined service begins with sourcing used cars from auction houses in Japan, utilising procurement professionals and on-the-ground consulting to ensure it taps into market trends. Then, its logistics businesses, such as Dolphin Shipping New Zealand, provide a one-stop land and marine transportation service that combines the Group’s inspection business. Since biosecurity is a major theme in exports to New Zealand and Australia, Optimus Group established JEVIC for the pre-shipment inspection and quarantining of vehicles.

Once its cars have arrived at their export destination, the Group’s business extends to safety inspection of imported vehicles by VINZ, maintenance, and financing for local car dealers. Its subsidiary, Auto Finance Direct, provides automotive loans to consumers, whilst Auto Trader Media Group operates an online automotive marketplace that connects customers with dealers. Thanks to the collective strength of its subsidiaries, Optimus Group can customise its business model to suit each export market.

Optimus Group is currently focused on expanding into Australia. It forged an alliance with OzCar, the country’s largest used car dealer, and acquired a 60% stake in Blue Flag, a vehicle data platform to support its B2B operations and pricing models. The Group recently acquired Autopact, the country’s third-largest new car dealership, placing 28 dealers, 35 brands, and over 100 showrooms under the Group’s umbrella. In addition, the Group also has entered into an agreement to acquire 100% of the shares of Autocare Services, Australia’s secondlargest integrated automotive logistics firm. Mr. Yamanaka is confident it can achieve the same success with its Australian partners as it has done with its New Zealand counterparts.

Optimus Group began as a fishery import business – Nichibo (Japan Trading) – until its founder, representative director, and president, Nobuya Yamanaka, discovered the flourishing market for exporting previously owned (used) Japanese cars to New Zealand. Within one year, Nichibo (Japan Trading) had accomplished a full-scale entry into New Zealand’s used car market. Today, the Group’s sales account for a remarkable one-quarter of all cars currently on the road in New Zealand and nearly half of newly registered used cars on the islands, whilst it has also expanded into other verticals. “Primarily, we export used cars, but we’re also happy to support the export

“There’s still lots of potential in Australia. Our desire is to continue growing with the Australian automotive industry – when we started our partnership, OzCar had only seven dealerships, but now we’ve grown those to 21, and we want to add another 20. Apart from Australia, we would also like to grow in other markets.”

Going forward, Mr. Yamanaka invites more partners to help expand the company and foster mutual growth. “We’re happy to work with people that share our philosophy and working culture,” he says, adding: “We’ve been in New Zealand for more than 30 years, nurturing many long-term relationships along the way. Our goal has always been to provide the solutions and services people need, not just compete with others.” Mr. Yamanaka also welcomes investors in the company’s stock, which jumped 277.35% in the 12 months ended March 8, 2024.

As Optimus Group pilots its course to new horizons, Mr. Yamanaka hopes its expansion will showcase Japan’s unique talents. “Our work ethic is exceptional, and I believe we’re highly skilled in balancing profitability and quality. We pay a lot of attention to details. Companies like us are here to serve customers – to make people happy.”

Renewable Japan

LEADING THE WAY TOWARDS SUSTAINABLE ENERGY AND ECONOMIC GROWTH

As Japan witnesses another year of record-breaking share prices and soaring corporate profits, businesses are strategically deploying their substantial cash reserves to sustain the ongoing market momentum.

Figures released by the Ministry of Finance indicate that Japanese companies’ capital expenditure surged by 16.4% year-over-year in the fourth quarter of FY23, marking the fourth consecutive quarter of growth. This increase aligns with a substantial uptick in corporate profits for the year, reaching some of their highest quarterly levels on record.

Renewable energy stands out as one of Japan’s most rapidly expanding and dynamic sectors, garnering significant attention since the country committed to achieving net zero emissions by 2050. Japan has already established itself as a leader in environmental innovation, a fact underscored by the World Economic Forum’s recognition of Japan’s global leadership in filing renewable energy patents between 2010 and 2019. Additionally, Japan ranks prominently for installed renewable energy capacity, with a notable focus on solar power infrastructure.

Looking ahead, the government is actively promoting ‘green growth’ initiatives to stimulate the economy. This includes a Green Innovation Fund worth JPY 2 trillion, as well as plans to bolster the offshore wind market and unlock the technical and financial value of Japanese firms operating in the space by spearheading regional collaboration, such as the Asia Energy Transition Initiative (AETI).

Ranked among the top ten in the sector, Renewable Japan is dedicated to realizing a net-zero Japan. Over the span of just 12 years, the company has evolved from a regional player aiding in the revitalization of Tōhoku after the 2011

The cornerstone of Renewable Japan’s rapid success lies in its distinctive, end-to-end business model, which has established it as a comprehensive solution provider within the sector. Renewable Japan’s services span a wide spectrum, ranging from liaising with local governments and building community trust to financing, planning, development, and post-construction operations and maintenance (O&M) of plants. Additionally, the company offers asset management services to its clients. Predominantly, it operates solar energy plants but also manages a hydroelectric plant. Furthermore, it has another hydroelectric plant under development and is actively investing in the development of several onshore wind farms to fuel future growth.

The driving force behind this groundbreaking model in Japan is Katsuhito

Manabe, the company’s president, who draws upon his extensive background in investment banking. Notably, he made significant contributions to establishing the securitization business during his early career, initially at Lehman Brothers and later at Barclays Securities Japan. Manabe believes that his finance expertise provides invaluable insight into the renewable energy sector. “Prior to launching this venture, I recognized the parallels between finance and renewable energy,” he explains. “For instance, financing a renewable energy project shares similarities with securitization.” He emphasizes how Renewable Japan handles the financing and acquisition of financial products, such as funds, for each project they undertake. “We’re innovators, yet we possess a deep understanding of finance,” he adds. Renewable Japan currently leads the domestic bond market for renewable energy projects, boasting a remarkable 33% share. This achievement underscores the company’s commitment to driving financial innovation within the renewable energy sector.

Manabe’s financial expertise has played a pivotal role in Renewable Japan’s global expansion efforts, particularly in managing relations with US and European bankers. In September 2022, Renewable Japan achieved a significant milestone with the completion of its inaugural overseas project – the acquisition of the Socovos power plant (21.65MW), starting operations in Spain through its local Subsidiary “RJ Eurodevelopment”. With this successful venture under its belt, the company is now poised to oversee numerous additional projects. “Globally, our focus extends to Europe, Australia, the USA, and Canada,” Manabe emphasizes. “Expanding our business to as many countries as possible is a top priority.” This ambition underscores Renewable Japan’s commitment to becoming a prominent player in the international renewable energy market, leveraging Manabe’s financial acumen to navigate opportunities across diverse regions.

Looking ahead, Manabe expresses eagerness to find partners to bolster Renewable Japan’s portfolio and expedite progress within the sector. In return, the company offers a wealth of expertise in managing renewable energy projects, totaling over 2 GW, along with local subsidiaries and seasoned personnel to facilitate market entry into various countries.

“We’re open to joint ventures with foreign companies in Japan as well as overseas, particularly in our target countries,” says Manabe, emphasizing their openness to collaboration. He adds, “On the technology side, we’re keen to learn from overseas players. Our business model, brought from abroad, is distinct in Japan. Additionally, we see significant potential for growth in Australia and the USA.”

In addition to investing in projects, another way to participate in Renewable Japan’s success is by investing in the company’s stock, which surged by 167.1% in the 12 months ending on March 4, 2024. Looking ahead, Manabe reveals his plans to increase its annual net income by JPY 500 million over the next three years, reaching JPY 2.5 billion by 2026. “We’re also diversifying our portfolio; we don’t rely on one business but have three or four. That provides us with security.”

By 2050, Japan remains resolute in its commitment to meeting at least fifty percent of its energy needs through renewable sources. This bold objective hinges on the pioneering efforts of trailblazers like Renewable Japan, who have not only shown that a harmonious convergence of decarbonization and economic prosperity is feasible but also highly desirable. Through their unwavering commitment to fostering regional and international collaboration, Renewable Japan stands as a shining example of Japan’s unparalleled excellence in innovation, entrepreneurship, and cutting-edge impact investing, propelling the nation towards a sustainable and prosperous future.

earthquake into an industry leader, boasting over 360MW in operational power plants distributed all over Japan and Spain.

Katsuhito Manabe President

Manzanares Power Plant - Ciudad Real, Spain

J.E.T. A PIONEER IN SEMICONDUCTOR CLEANING EQUIPMENT

Japan is poised for yet another year of blockbuster economic growth. Net profits at listed companies are expected to grow 13%, according to Nikkei Asia, whilst the Nikkei index closed above 36,000 for the first time in decades this January as foreign investors piled in. Between January 9 and 12, they purchased a staggering JPY 995.7 billion of Japanese stocks, according to Tokyo Stock Exchange data. Interestingly, most of the capital flow came from investors with a mid-to-long-term strategy, as the scale of stock purchases outstripped futures. Overall, these moves take foreign investors’ holdings of Japanese stocks up to 30%, up from 4% in 1990.

Masayuki Bouno President

Japan’s semiconductor market is currently worth around USD 48.2 billion, according to Statista, and is forecast to grow to USD 53.3 billion this year. Whilst a far cry away from its global dominance in the 1980s, such growth is an encouraging sign after years of increasing investments in the domestic industry. One area Japan continues to inspire leadership in is supplying essential cleaning equipment to global chip makers. A staggering 30-40% of all semiconductor manufacturing comprises cleaning processes, accounting for around 200 steps. There are two kinds of cleaning – batch-type cleaning and single-wafer-type cleaning. Both are used in highly controlled and sterile ‘cleanrooms’ where tasks like chip manufacturing in the front-end process are carried out.

Founded in 2009, J.E.T. provides customisable cleaning solutions to the world’s leading chip makers. An industry leader, J.E.T. has gained a solid foothold in Asia through R&D, sales, and after-sales of high-tech equipment, building upon the legacy of its forerunner company SES.

In the early days, J.E.T.’s strategy was simple – developing equipment that tapped into the needs of East Asian semiconductor manufacturers. Today, Bouno believes the company needs to add more markets to sustain its growth rate. “We’ve been preparing our strategy to join the US market. We’re also revisiting the domestic market, having just established a sales department to build some momentum. The semiconductor industry is growing well in East Asia. The next step

is to expand to the US and Japanese markets.”

Where J.E.T. truly excels is in its unique products. The company prides itself on a tailored service that constantly evolves to meet new needs. Most of J.E.T.’s competitors offer standardised cleaning equipment, which can limit chip

makers. J.E.T.’s standout products are its BW3700 and BW3000 batch-type machine and HTS-300 single-type machine.

The BW3700 and BW3000 cleans double the number of wafers per hour (50) than its competitors in some processes. It achieves this by using a unique one-way arm system to move the wafers, eliminating the possibility of jamming or congestion, which occurs in conventional two-way systems. Clients can customise everything from the number of cleaning baths to their specific configuration.

The HTS-300, meanwhile, cuts down the cleaning time of a single wafer to 90% of its competitors, maintaining a high temperature of chemicals using a halogen lamp for thirty seconds. The wafer treatment surface is also flipped upside down for the chemical spray process, reducing the supply of chemicals required by 95%. Plus, as the HTS-300 sprays these chemicals in mist form, it dramatically reduces the generation of SPM particles – which can adversely affect chip processing.

Whilst batch cleaning accounts for 90% of J.E.T.’s sales, new entrants to the chip-making market are focusing on single-wafer equipment as it does not require advanced technologies. Along with the increasing miniaturisation of wafers, demand for batch and single-wafer cleaning have continued expanding. So, too, is the demand for customisation over standardisation, as control over higher temperatures and chemical viscosities becomes an industry ideal. These trends perfectly align with J.E.T.’s skillset, making it the ideal investment opportunity.

“We’re constantly creating new technologies. We launched new equipment just this year and developed an entirely new cleaning process. In the next few years, we will grow exceptionally in the global market,” says Bouno. Notably, in the final three months of 2023, J.E.T’s stock price jumped by around 156%. Over the long term, its net sales increased at a CAGR of 21.7% between 2009 and 2022.

As J.E.T. continues to grow its success and global operations, Bouno is eager for more partners to come on board. As of June 2023, J.E.T.’s partnership network spans over 70 domestic and overseas firms. Bouno is particularly keen on supplier partnerships. “We do the R&D and design, but we outsource the parts from outside and assemble them in our factory. We need their support.”

Japan’s richness in materials, machinery, and technical prowess made it a semiconductor superpower in the 1980s. Today, those same factors have made it a safe haven for the global semiconductor supply chain, and now firms like J.E.T. are helping it reclaim its glory days. For Bouno, nowhere else compares. “There isn’t a better country to produce equipment than Japan. There’s an abundance of SMEs with advanced technologies available for a reasonable cost. Only Japan can provide such an environment.”

Tabio

PIONEERING PREMIUM SOCKS AND REDEFINING COMFORT GLOBALLY

Building upon its rich talent pool and cultural legacy, Japan capitalized on initiatives such as ‘Japan as Number One’ during the 1970s. This movement actively promoted Japanese movies, music, fashion, and design on the global stage. Consequently, Japanese products and services have garnered an esteemed reputation in international markets, with the label ‘made in Japan’ becoming synonymous with unparalleled quality, durability, and cutting-edge technology worldwide. At the core of this acclaim is a multitude of companies adhering to ‘monozukuri,’ the Japanese manufacturing philosophy characterized by a relentless pursuit of improvement and craftsmanship. It is this commitment to excellence that has propelled these companies onto the global platform, solidifying Japan’s status as a premier provider of superior products and services.

In the realm of sock manufacturing, Japanese firms stand out as exemplars of quality and innovation. Through the skillful integration of premium materials, durability, and ergonomic design, Japanese sock producers consistently rank among the world’s elite. Notably, the Japanese market commands a significant share, nearly 10%, of the global revenue for sock production, totaling USD 1.27 billion, according to Statista. This dominance is further underscored by the cultural significance of specific sock varieties, often cherished and worn for traditional or ceremonial purposes. Looking ahead, Statista’s projections indicate a promising trajectory, with the domestic sock market expected to experience a Compound Annual Growth Rate (CAGR) of 3.19% over the next four years, while the global market is forecasted to grow at a CAGR of 2.84%. These statistics not only highlight the enduring demand for Japanese socks but also forecast continued expansion both domestically and internationally in the coming years.

Established in 1968, Tabio stands as an iconic symbol of Japanese craftsmanship, renowned for its premium sock offerings.

With a diverse range of styles, fabrics, and colors, Tabio’s socks are meticulously crafted with a singular goal in mind: to enhance and elevate everyday comfort and lifestyle.

Boasting a widespread presence, Tabio operates over 230 stores across Japan and enjoys international acclaim with flagship outlets in prominent cities like London and Paris.

Moreover, the brand’s influence extends globally through a robust social media presence, captivating audiences across wider Europe and the USA.

The journey of Tabio traces back to its founder, Naomasa Ochi, who embarked on his sock-making venture at the tender age of 15. Driven by a vision to craft the world’s most comfortable socks, he diligently cultivated Tabio’s distinctive ‘made in Japan’ identity. This involved championing traditional techniques and fostering collaborations with local craftsmen, distributors, and material suppliers in Nara – renowned as the epicenter of Japanese sock production. Today, the legacy of Naomasa Ochi lives on through his son, Katsuhiro Ochi, who now leads Tabio as its president. Emphasizing their commitment to Japanese-made quality, Katsuhiro states, “Whilst we could manufacture overseas, we want to maintain our Japanese-made quality. It’s what differentiates us from the competition.”

At the core of Tabio’s esteemed reputation lies its commitment to skilled craftsmanship, premium materials, and a relentless focus on achieving an ultra-

comfortable fit. According to Katsuhiro, Tabio caters to two distinct types of Japanese sock customers: those who prioritize specific sock features and are willing to pay a premium price, and those who place importance on the manufacturer itself. He explains, “For example, soccer players opt for our soccer socks due to their specialized features. Although we don’t pay large sponsorship fees to the teams like major sports brands, so many professional players, including some on the Japanese national team, choose Tabio’s soccer socks. Despite price increases, they remain loyal to our brand. However, it’s crucial to articulate the unique value proposition of our brand to customers. Fortunately, global recognition and appreciation for this aspect are growing.”

Tabio ensures perfection in every customer experience by meticulously crafting each pair of socks. With craftsmen adept at making ‘zetsumyo’ adjustments to suit the characteristics of the materials, the company takes pride in its mastery of discerning subtleties like imperfections and stitching pressure to achieve exceptional quality. Sourcing premium yarns globally, including Tabio’s signature homemade extra-long staple cotton grown organically from seeds, alongside rare wool finer than cashmere, Tabio ensures the highest quality materials in its products. Furthermore, Tabio subjects all its socks to a rigorous quality control process. Starting with factory inspections, each pair undergoes additional scrutiny at the distribution center. Tabio’s in-house Quality Control center randomly selects ten pairs from each delivery lot for extensive testing exceeding Japanese Industrial Standards (JIS). Crucially, Tabio ensures not only impeccable build quality but also the desired softness, ensuring that customers experience both visual and tactile satisfaction.

In line with its mission to redefine the perception of socks, Tabio aims to elevate them beyond mere commodities. By offering premium products and highlighting the importance of comfort and style in everyday wear, Tabio strives to educate consumers about the true value of socks.

Looking ahead, Tabio has its sights set on becoming the global industry leader. Katsuhiro highlights that it is currently the only company in the world solely dedicated to sock production and is particularly eager to expand its presence in the USA. To achieve this, the company invites US-based businesses, factories, and retailers to join in its mission of reshaping consumer perceptions of socks. “Finding a partner who shares our commitment to high-quality socks is key to our growth. While seeking a distributor is the most straightforward route, we’re also open to collaborating with overseas factories that align with our monozukuri approach. We have confidence in the demand for our products.”

Given Tabio’s recent performance and growth strategy, now is an opportune time to consider investing in the company’s stock. With an 8.74% increase in the three months leading up to February this year, Tabio shows promising momentum. Furthermore, the global sock market’s relative immaturity provides ample room for Tabio, an experienced market leader, to ascend to international leadership. Notably, Tabio’s alignment with trends like eco-friendliness and high-quality products positions it for sustained growth and global dominance.

Frontline companies like Tabio, dedicated to excellence and innovation, are poised for a significant decade globally. For Katsuhiro and the Tabio team, the goal is clear: ‘We aim to etch our name into fashion history, striving for Tabio to become synonymous with premium socks worldwide.’” With an unwavering focus on quality, craftsmanship, and customer satisfaction, Tabio is positioned to reshape the landscape of the sock industry and emerge as a trailblazer in the fashion realm.

Katsuhiro Ochi President

Dress socks with the world’s thinnest lamé

HARDLOCK Industry

THE WORLD’S TOUGHEST NUTS

Japan’s per capita income is forecast to grow by 3.8% in 2024, according to official estimates, outstripping broader economic growth.

This should boost Japan’s domestic economy, while exports continue to grow on the back of the country’s world-beating manufacturing sector.

HARDLOCK Industry, a leading manufacturer of self-locking nuts and other nonloosening fasteners, epitomises Japan’s innovative and high-quality manufacturing. The inspiration for their unique products is derived from a traditional Japanese construction technique that employs wedges rather than nails to join parts. Their globally renowned HARDLOCK Nut guarantees the “complete unification” of the bolt and nut, effectively preventing loosening. This makes it an ideal choice for applications in safety-critical and high-pressure environments, including Railways, Infrastructure, Steel Mills, Machine Tools, Robots, Mining and Quarrying machinery, and Wind Power Plants.

The HARDLOCK Nut plays a crucial role in the Shinkansen, Japan’s worldrenowned “bullet train,” where it is utilized to secure the train body and the rail line. Additionally, it is employed for high-speed rail systems in locations as far afield as the UK, China, and Taiwan. “We deliver safety to protect lives,” says Katsuhiko Wakabayashi, HARDLOCK Industry’s chairman. “Our company prioritizes safety and reliability as our core values. Distinguishing ourselves from others, we excel in the unique ability to seamlessly unite two parts into a single, cohesive component. Our expertise allows us to adapt our innovative mechanisms to diverse fields and shapes, tailored to meet the specific needs of our customers.”

HARDLOCK Nuts are engineered to thrive in the harshest environmental conditions. Their robust design ensures resilience and longevity, making them particularly valuable in demanding settings. Although the upfront cost may be higher, the company’s products stand out for their enduring performance, requiring minimal maintenance and ultimately offering superior cost-efficiency over time.

FICT

FUELING JAPAN’S SEMICONDUCTOR RENAISSANCE

Japan is ambitiously aiming to triple domestic semiconductor sales by 2030, exceeding JPY 15 trillion, while currently leading in semiconductor materials and manufacturing equipment, commanding 56% and 32% of the global market share, respectively (World Economic Forum).

With over 50 years of industry expertise, FICT has emerged as a prominent supplierofhigh-endPCBsandICsubstrates.InitiallyestablishedasaPrintedCircuit Board (PCB) business unit within a leading Japanese company in the ICT industry, FICT specializes in PCBs crucial for semiconductor test equipment and package substrates essential for safeguarding IC chips. Notably, FICT’s products are utilized in the supercomputer Fugaku, one of the world’s fastest supercomputers, and the company also holds a significant market share in probe card testing (ST Board), ensuring chip integrity.

FICT has forged its reputation by delivering a continuous flow of innovative products and customized solutions, driving forward the global semiconductor ecosystem. Positioned at the vanguard, the company meets the escalating demand for thinner and more intricate chips essential in AI, IoT devices, cloud computing, and wearables. Noteworthy among its offerings are high-end PCBs with minimal conductor surface roughness, heralding breakthroughs in efficiency, and ultrahigh-speed data transmission. Additionally, its advanced glass substrates (G-ALCS : Glass All Layer Z-Connection Structure) mark a paradigm shift in the substrate domain, further enhancing its pioneering stance in the industry.

HARDLOCK Industry is currently actively seeking partnerships and collaborations to propel itself to the next level. This includes exploring opportunities in new segments, including the medical sector. “We are actively seeking partnerships with companies that align with our values and can effectively utilize our products,” says Wakabayashi. “With an extensive range of patents, we have the capacity to make meaningful contributions to diverse industries globally. Whether you operate in the wind power sector and require top-notch products or are involved in medical applications such as dental implants, bone implants, or spectacles, our products can cater to your needs.”

Katsuhiko Wakabayashi Chairman

The company already has a strong track record in global markets, with partners including UK distributor Staytite.

Looking ahead, HARDLOCK Industry has successfully secured government funds to advance the development of a durable plastic HARDLOCK Nut and bolt. Extensive research has been conducted to ensure that this innovative product will establish itself as the most high-tensile plastic nut and bolt on the global market. This product will be both lighter and more flexible than its metal counterpart, making it ideal for use in environments that prioritize anti-rust properties and lowweight materials, such as underwater infrastructure and drones.

HARDLOCK Industry remains singularly focused on delivering for its customers in a growing range of markets. In this approach, it reflects Japan’s timeless business culture.

“Japanese companies don’t just meet the customer’s needs, but always provide additional value,” says Wakabayashi. “We deliver better than requested – and we always try and improve. We are perfectionists.”

& CEO. “Historically, we’ve consistently led the market, pioneering cuttingedge solutions unmatched by other suppliers or competitors.” Amemiya highlights FICT’s primarily international customer base and its support for leading test equipment manufacturers in the semiconductor industry, including among its clientele companies providing equipment to test the world’s bestselling smartphones.

President and CEO

Looking ahead, Amemiya unveils the company’s ambitious goal of doubling its revenue from semiconductor-related activities in the next three years. ”The semiconductor market will experience rapid growth over the next decade. We have a significant opportunity now to fuel our expansion,” he states. FICT recently invested over USD 100 million to establish a new product line in Nagano, complementing its two existing production sites. This initiative aims to cater to overseas data centers and AI server markets, further solidifying FICT’s global presence and market position.

FICT is actively pursuing strategic partnership opportunities with potential investors, including financial institutions or prominent industry players seeking inorganic growth opportunities. With semiconductor chip foundries like TSMC or Japanese government-backed venture Rapidus (in joint development partnerships with IBM) opening production facilities in Japan, Amemiya is confident that unprecedented opportunities will arise. Indeed, success stories like FICT’s are contributing to Japan’s resurgence in the semiconductor industry. Leveraging their strengths, Japan is once again being recognized as a global powerhouse in the semiconductor value chain.

In essence, FICT’s commitment to innovation and excellence, coupled with Japan’s strategic initiatives, positions the nation at the forefront of the global semiconductor landscape, poised for continued growth and success.

“Our technology is highly advanced,” asserts Takahisa Amemiya, the company’s President

Takahisa Amemiya

Multilayer Glass Substrate Prototype (G-ALCS)

Amillion dollars sounds sexy. But what is it, really? For some, a dream. For others, a goal. A million in profit is a form of financial security—or at least the freedom to take some risks. A million in revenue is a marker point where business models are proven and investors start calling. For experienced entrepreneurs, a million dollars might be a unit they now measure in the tens or hundreds. But however many millions you have, it’s always a metric of note.

On the following pages, we’ll chart many paths to getting there—from founders, investors, fundraisers, and other experts.

You’ll learn how to build a $1 million business in a weekend, how to earn your first million tax-free, how to ask for a million dollars, and how a number of other entrepreneurs plotted and problem-solved their way there. All of it goes to show that if you haven’t made a million yet, it’s never out of reach.

IF ONE MILLION DOLLARS IS YOUR GOAL…

How do you make it? And what does it actually get you? The cohosts of the popular podcast my first million ( who made many multiples of that themselves ) share what they’ve learned.

by JASON FEIFER

Sam Parr and Shaan Puri think in millions. They’ve both had notable exits for many millions (Parr sold his newsletter company The Hustle to HubSpot, and Puri sold his video streaming company Bebo to Twitch). Together, they cohost the chart-topping podcast My First Million, where they kick around business ideas with successful entrepreneurs. Both agree: A million dollars sounds sexy, but it’s not an end goal. “When you have a million bucks, you’re not making tons of investments,” Puri says. “You can’t just live off it forever, unless you’re living a really minimalist life. So you should ask the question, ‘At what thresholds do things actually change, versus what are the arbitrary numbers that just sound good?’”

Here, they discuss the true value of a million dollars, and the strategic path to your first million (and many more).

Does a million mean anything, really?

SHAAN: For most of what you want, you either need far less than a million or far more than a million. A million is almost this dead zone where nothing happens.

Because the reality is, money is a tool. It has no use on its own, except that it can give you some amount of freedom. And there are different numbers. Let’s say you have $250K in the bank. You might have the freedom to take a shot—like, “I can work on something and not make a dollar for the next 24 months, or 36 months.” That’s great. It’s not forever money, but it is two-plus years of not having to answer to anybody. You

give yourself that runway. The next marker is “never need to work again” money, which is, like, $10 million. In the first part of your career, you’re trading your time for money—but after $10 million, your money works for money, and you work for you. You can do whatever you want.

Calculate how much the things you want cost, and then set your targets, break that into chunks, and break those into the first milestones you want to achieve—with the most important one being: “How much money do I need to be able to quit my job, go be an entrepreneur, and give myself two years of runway?”

How did you make those calculations?

SAM: I’ve had a spreadsheet since I was 22 years old, when I had very little money. I would track my monthly expenses against how much money I had saved. I’d say, “When I have zero income coming in, this is how many months I have.” My goal was to make that number of months go up. And I came up with a number [for how much to save so I didn’t have to work again, based on expenses]. I did that by speaking to a bunch of wealthy people about their expenses, and decided I should try to save up around $18 million.

I read a bunch of books and noticed a trend amongst people who I admire—Travis Kalanick, Mark Cuban, a handful of others. They sold a business at a young age, between their late 20s and 30s, to get that number. That made it much easier for them to do their big thing. So I said, “Instead of trying to build a business that I’d raise tens or hundreds of millions for in VC, I bet that in five years, I could start a business that nets me the number that I need.” And I used to track it all religiously on Google Sheets.

That is remarkably strategic.

SAM: Here’s why: When you create rules to play, and when you figure out the rules of the game, it’s far less stressful and more exciting to play the game.

Shaan, did you have a similar approach?

SHAAN: When I was young, I was like, “By the time I’m 30, what do I want? I want to have a million bucks in my bank account. I want to make Forbes 30 Under 30. I want to do this, I want to do that.” Then, fastforward—I’m 29, and I have an existential crisis. I think, Damn, I’m behind schedule. I do not have a million dollars. I am not Forbes 30. It didn’t feel good. And I was like, “Alright, I have two choices. Either I can keep telling myself I’m behind, or I could be like, ‘Are you joking? I got my whole life ahead of me. Everything I’ve done so far is preparing me to do the things I want. And some of these goals were stupid. I should rewrite these goals to be what I actually believe now, not what my 20-year-old self thought was cool.’”

That was a psychological turning point in my life. As soon as I did that, the floodgates opened. All of a sudden, I came up with different ideas. I ended up selling my company. By 31, I was a multimillionaire.

There was an intentionality to both of your answers.The choices that you made were different, but there was a reason you took the steps you did. SAM: Shaan and I came up with this idea called ABZ. When you’re starting something, you think about Z, which is the end of the journey. It’s exciting and awesome inspiration and motivation to get up each morning. But besides that, you should only focus on the letter A and the letter B—because you get your first customer and then get your second customer,

How do you think people should evaluate whether they’ve built the right path to millions?

SHAAN: I’ve found that, in my life, most people are trapped by inertia. An object in motion stays in motion. My mentor told me, “You have to be really careful, because you’ll just wake up tomorrow and do the same thing you’ve been doing—not because it’s the best thing to do, but because it’s the thing you’ve been doing.”

To guard against that, I decided to err on the other side of it—which is to say that unless it’s a hell yes, and

ily mean something is going well. Sometimes things feel very right to me, even though they haven’t taken off yet. But I will bias toward change more than the average person. Sam, you’re kind of different, right?

SAM: The way I think of it is—have you ever heard the Japanese term ikigai? It’s basically a Venn diagram of: What does the world want, what does the world want to pay for, what am I skilled at, and what am I passionate about? I think far too often, people try to fall into one or two of the buckets—like, what does the world want, and what do I

You want to fall right in the middle. And if you do, I don’t think it’s that challenging to make your first million. I think it’ll take five years. The challenging part is being willing to dedicate 40 hours a week for five years.

In both your answers, you’re describing a kind of useful interrogation— looking deeply at why you’re doing something. SAM: Well, yeah, it’s just being honest and only being the right type of crazy. You definitely need a little craziness in you, but the correct flavor of crazy.

→ SHAAN PURI

million - dollar UNLOCKS

New companies rarely get off the ground without some roadblocks, setbacks, and unforeseen decisions. Here, 10 founders describe the pivots that unlocked their growth and catapulted their profitability.

10 founders describe

by RACHEL DAVIES

UNLOCK / When you hit a wall, revisit your bigger idea.

When Ben Witte launched his brand Recess in 2018, his mission was simple: He wanted to make nonalcoholic relaxation beverages. CBD was hot at the time, thanks to the recent passage of the Hemp Farming Act, so he launched a line of CBD-infused sparkling waters—and then hit a problem. Consumers liked the drinks, but many retailers wouldn’t stock CBD, because the FDA hadn’t offered guidance on it. Witte faced a choice: Double down on CBD, or expand elsewhere?

UNLOCK / Give customers what they want, no matter the cost.

Soon after founding their company Pair Eyewear in 2017, Sophia Edelstein and Nathan Kondamuri started a private Facebook group for their customers. Pair sells glasses that magnetically connect with “top frames” in a variety of different patterns and colors, so customers can personalize their glasses like any other accessory.The Facebook group was a space where customers could share feedback and show off the fun ways they were styling the frames.

But pretty quickly, Edelstein says, they started hearing one thing over and over: “‘I need more styles,’” Edelstein says. “That’s what we kept hearing from our customers.” Back then, Pair only offered 10 styles of top frames, and their offshore manufacturers’ long lead times and large minimum order quantities made it impossible to launch more than one collection a season. With their current manufacturing process, what their customers wanted was impossible.

To make that decision, he reflected on his mission. His goal was to make nonalcoholic relaxation beverages—and CBD wasn’t the only way to do that! He looked for other ingredients and discovered magnesium L-threonate. “In 2020, no one was talking about magnesium, so it kind of felt like a secret hidden in plain sight,” Witte says. It’s believed to have a mood-lifting effect. A year later, he used it in a new line called Recess Mood, a line of relaxation drinks that landed in national retailers. Nowadays, CBD accounts for less than 10% of sales. “Would I have thought CBD would be a much bigger part of our business now? Yes,” Witte says. “But it’s important to know what details you can adjust and what you should stay true to.”

Instead of giving up, they researched what it would take to make this request a reality. The answer was daunting: They’d need to build their own proprietary manufacturing process in California, which would allow them to produce any top-frame style on demand. It took years to do, but they’re now able to satisfy their customers’ desire for more with a new collection almost every week, resulting in 24x revenue growth between 2020 and 2023.

UNLOCK / Find your ideal customer (and it might not be you!)

Loren Castle

loves sweets but wanted to avoid processed foods, and she assumed many others felt the same. That’s why she created Sweet Loren’s, a cookie dough brand formulated with whole grains and no dairy. But on shelves, her brand was competing against big players like Pillsbury or Nestlé Toll House—and to survive, she had to lower her prices even though her ingredient costs were much higher. “It wasn’t a healthy business,” Castle says. She needed a way to distinguish her brand— and the solution came from customers she never expected to serve. People saw her dairy-free dough, and then emailed to ask if she’d make a version that excluded whatever they needed to avoid—typically allergens like gluten, peanuts, tree nuts, and eggs. She reformulated her product to accommodate all of those, and it was a hit. Nine months later, Sweet Loren’s became an exclusively allergen-free product. No longer competing with traditional brands, she was able to raise her price. “All of a sudden, we had a healthy business, a healthy margin,” she says. “We really built a moat around us.” In the years since, the brand has expanded into over 25,000 stores nationwide.

UNLOCK / Don’t try to do everything yourself.

BookSmarts Accounting & Bookkeeping founder Jenny Groberg had been slowly growing her business for 10 years—and then, one day at home, she fell and sustained a brain injury. If she wanted to recover, a doctor told her, she’d need to give up working and focus on her health.

Groberg had long kept her company’s financial affairs close to the chest, but that was no longer an option. She promoted one of her employees, Emily VanBrocklin, to COO, and shared everything. “It was kind of awful, actually, because that was something I kept private,” Groberg says. “But that was one of the switch points. I offered her profit-sharing—which was the best thing I ever did. Then she had skin in the game.”

VanBrocklin ran the company for a few years while Groberg was hands-off, healing. And when Groberg returned to work in 2023, they split up work based on strengths, with VanBrocklin managing the team and being the point of contact for clients, and Groberg focusing on growth and community outreach. “That should be the role of every CEO, to delegate as much as you possibly can [to] go out and keep building,” Groberg says. Being able to divide the work paid off; with over 50% client growth, it was the first year that BookSmarts surpassed $1 million in revenue.

UNLOCK

Launch variations on your hero product.

Nina Farzin quit her job as a clinical pharmacist to spend more time growing a company she’d started on the side, Oogiebear. The business sold a proprietary tool she’d developed that removed boogers from babies’ tiny nostrils, allowing them to breathe better. The original product had been a hit, getting picked up by major retailers. Now she wanted to expand the company, but she wasn’t sure of her next move.

“I noticed that many companies with great products become one-hit wonders,” Farzin says. “I didn’t want that for myself.” She wanted to launch additional products—but as a self-funded founder, she needed to be careful. Ultimately, she decided to build upon what she already knew: She started with a case and multipack of her booger remover, to make it simpler for parents to travel with the booger tool. Then she launched a nose-to-toe balm, inspired by her own struggle to find a chemical-free balm to soothe her kids’ sensitive skin. In the five years since, the company has grown from $1 million to $5 million-plus in annual sales. “With the variations, I realized that there is no shortage of ideas here,” Farzin says.

UNLOCK / Find a better way to package your product.

In just one year, Montreal-based yerba mate company Mateína went from selling 300,000 units to selling 1.3 million units. How’d they do it? By shifting how they packaged and sold their product.

The company began in 2017, after cofounders Nicolas Beaupré and Elodie Simard took a trip to Argentina. That’s where they learned about mate, an energizing tea that’s usually served hot. They founded Mateína and started selling loose-leaf tea—but discovered that loose leaves are hard to distribute as samples, even harder to land on retail shelves, and very seasonal. (People mostly buy them in the winter, when they want hot tea.)

That’s why, in 2019, Mateína added a new product—a canned version of the tea, which was easier to stock and could be consumed year-round. “This is really when everything became real,” Beaupré says. And it’s when sales jumped. Since then, Mateína has grown at least 45% each year.

UNLOCK

Follow the money, even if it changes your model.

Birdy Grey had a problem. The company sells affordable bridesmaid dresses that can be shipped fast—but when it launched in 2017, customers kept complaining about its limited color and style selection. The founders knew this was a problem, but they weren’t sure what to do about it. Their fast-shipping model meant they needed inventory on hand, but they couldn’t afford to build out more inventory. “We tried to get a loan from traditional banks, but we were too young, small, and unproven,” says cofounder and president Monica Ashauer. “We’d have to go out and raise a bunch of money from equity investors, and the market conditions were really terrible.”

Then they had an idea: What if they offered made-toorder dresses in addition to their selection of readyto-ship dresses? It would be a departure from their fast-shipping concept, but it would solve the cash-flow problem. “We had to jump over our own shadow to even think about offering a longer lead time,” Ashauer says. But ultimately, this decision allowed them to offer a much wider selection of dresses, both in size and style, and it completely reversed their cash cycle, allowing them to shift from shelling out money for all of their styles before wedding season begins to paying manufacturers after the product has shipped.

UNLOCK / Experiment, even if you were taught not to.

After a stint as CFO of an international yoga franchise, Rachel Hirsch was ready to venture out on her own. In 2022, she launched her own business, Empowered Yoga. But eight months in, membership wasn’t growing and classes weren’t filling up. She’d tried to replicate the growth strategies she’d seen work for franchisees at her previous company, but it wasn’t going well.

Frustrated, she sat back to take stock of the situation, and realized something: She’d been following a corporate playbook when she was actually running a scrappy startup. She’d been so afraid of making a misstep that she hadn’t been trying anything new or daring. So, although it was scary, she started acting scrappier. She cold-messaged other brand owners to collaborate, hosted events out of the studio, and offered class packs (a no-no in her old world). “We can be malleable because we’re a startup,” Hirsch says. “Pivoting and being able to continue is a success.”

As she experimented, revenue doubled and classes started to fill up. She received an investment offer at a $1 million valuation in 2023, and Empowered has since expanded to a second location.

UNLOCK

/ Listen carefully to understand who needs your product most.

Patty Leuchten founded Diligent Pharma to streamline the process of clinical trial qualification, by connecting pharmaceutical and biotech companies with the right researchers to run their clinical trials. Diligent’s platform promises to cut 100 days from the process, and in the early days, they were eager to land big pharma firms. But they ran into an unexpected roadblock: Internal quality control teams within big pharma companies were resistant to buying Diligent’s platform, because they feared it would eliminate their jobs. Leuchten says this was a misconception, since their software was actually intended to “help people in these jobs do more with less resources.” But this roadblock also helped Leuchten realize something.

Sure, their platform was useful to these larger pharma companies. But the companies that really needed their help were the smaller ones that didn’t already have a whole team of people working on the process their platform was meant to speed up. These smaller companies really needed what Diligent was selling. With this observation, Leuchten reoriented Diligent to “hyperfocus” on small-to-midsize companies. This helped the startup double its revenue in 2023 to $2 million. “It starts with having expansive conversations, asking the right questions, and really listening to where the specific needs are,” Leuchten says.

UNLOCK / Boost your credibility to earn people’s trust.

MysteryVibe launched in 2014 with a mission to help people see vibrators as therapeutic devices, capable of alleviating sexual health issues. Given their taboo positioning as “sex toys,” vibrators are not often discussed in medical contexts, despite the fact that they can be used to resolve pelvic pain, prostate pain, and dryness after menopause. “We thought, This is an area that affects everybody, isn’t really talked about, and doesn’t have many solutions,” says cofounder and CEO Dr. Soumyadip Rakshit

There’s no way for one company to tackle a systemic issue, but in the decade since MysteryVibe was founded, they faced one big challenge: lack of education and understanding around sexual wellness, both from consumers and doctors. To change the stigma around vibrators—and stand out in the marketplace—they realized they needed to give their product more credibility. So they spent years working toward becoming FSA/HSA eligible. Through FDA registration, clinical trials, and journal publications, the process proved the products are medically useful. Advertising them as FSA/HSA eligible instantly led to a higher click-through rate, and after launching FSA/HSA eligibility in November 2022, the company saw 160% year-over-year revenue growth in 2023. As Rakshit says, “It gives a certain amount of credibility, beyond the fact that they will save some money.”

Avanti Feeds

LEADING INDIA’S GROWTH IN SUSTAINABLE AQUACULTURE AND FOOD EXPORTS

According to the latest OECD growth forecast, India’s economy is projected to grow by 6.2% in 2024, followed by a further 6.5% in 2025. With its robust demographic profile as the world’s most populous country, combined with modest inflation rates and substantial government support, India emerges as an enticing investment destination for those seeking alternatives to China.

To keep pace with India’s rapid population growth, the government is investing heavily in healthy food initiatives such as the National Nutrition Mission and FIT India. This has caused demand for affordable protein sources to surge. Although poultry currently dominates the scene, the remarkable growth of India’s seafood industry has sparked interest worldwide. Since India’s aquaculture industry kicked off in the 1990s, the country has surged to become the world’s thirdlargest fish producer, according to Invest India. The industry’s star product and largest export is shrimp, with India now the second-largest exporter of the protein-packed shellfish in the world, according to the FAO.

Dr. Indra Kumar Alluri Chairman & Managing Director

Established in 1993, Avanti Feeds has grown to become India’s premier producer of shrimp feed and the leading exporter of shrimp products in the country. Over the span of just over thirty years, Avanti has evolved from a pioneering company to a globally recognized brand known for its commitment to quality, sustainability, and support for regional fish farmers.

“Our primary advantage is quality,” asserts Indra Kumar Alluri, Avanti Feeds’ chairman, and managing director. “Avanti’s growth stems from our commitment to providing top-tier quality to customers. This philosophy has enabled us to cultivate long-term relationships – especially crucial in the food industry, where high standards are paramount.” In terms of shrimp feed, Avanti leads the pack. The company meticulously develops its feed in state-of-the-art laboratories to ensure it is nutritionally well-balanced and beneficial for farmers. With a steadfast dedication to delivering a premium product consistently, Avanti now commands an impressive 50% share of the domestic shrimp feed market.

Shrimp feed accounts for approximately 75% of Avanti’s revenues, according to Kumar, who reminisces about the company’s initial triumph as a pioneer in Indian aquaculture. “Back then, there was no domestic supply chain for aquaculture feed – everything had to be imported. We were the first domestic company to step in and provide feed.” Avanti’s intervention was instrumental, granting Indian fish farmers the ability to achieve higher, more profitable yields without relying on imported feed from Southeast Asia. Today, the company has expanded its feed production capacity from 10,000 MT to an impressive 775,000 MT.

The backbone of Avanti’s feed business undeniably lies in the farmers across India and Bangladesh who depend on its products. In order to enhance the region’s aquaculture ecosystem, Avanti collaborates with a network of 23,000 farmer-based enterprises and advocates for best practices throughout the industry. This effort encompasses seminars led by industry leaders, workshops, and technological demonstrations.

In addition to its significant presence and leadership in India’s shrimp farming industry, Avanti is also the country’s foremost shrimp exporter through its subsidiary, Avanti Frozen Foods. Established in 2015, it exports a variety of value-added products, including raw shrimps, cooked shrimps,

skewers, and marinated shrimp, to destinations such as the USA, Japan, Korea, Australia, China, and West Asia. “My vision for the next decade is to develop the domestic market for ready-to-eat foods like shrimp. We aspire to become one of the largest food companies in India,” Kumar reveals.

Avanti has also ventured into the pet food industry, which is a rapidly growing market in India. “Pet ownership is on the rise as families shrink,” explains Kumar. “As part of our broader growth strategy, we are also exploring fish feed manufacturing and expanding our operations in neighboring countries.”

With new opportunities on the horizon, now presents an opportune moment to invest in the company’s stock. It surged by approximately 20% in the first month of this year and has experienced a total increase of roughly 70% in the five years leading up to February 2024. Avanti is presently listed on both the BSE and the NSE.

As Avanti ventures into new markets, Kumar expresses the company’s openness to overseas partnerships, especially in the realms of technology transfer and food ingredient collaboration. Importantly, he believes that Avanti embodies the values most cherished in the global market: “Food safety is a top priority now, whether in the US or Japanese market, and that’s why people are interested in collaborating with us.” Avanti ensures full traceability from farm to fork. Additionally, all Avanti farms have received international certification from organizations such as BAP and ASC. Furthermore, the company employs a digital tracing system to benefit farmers and importers worldwide.

Avanti also promises sustainability to all customers and partners. The company recently pioneered a plant-based alga replacement for its fish meal, becoming the first in India to do so, and is committed to using sustainable alternatives across its product line-up. In addition, Avanti is a proud member of initiatives such as India’s Blue Revolution Scheme, which aims to promote sustainable practices amongst Indian farmers.

Investing in sustainability is paramount for Avanti’s future, just as it is for the entire industry and India as a whole. Whether by bridging the skill gap among farmers or providing a healthy, affordable protein source for the world’s largest population, Avanti has been leading India’s explosive growth for the past three decades.

Today, the company stands at the forefront of India’s aquaculture industry, embodying a legacy of innovation, excellence, and sustainability. With a steadfast commitment to quality and a vision for the future that embraces global collaboration and environmental stewardship, Avanti continues to redefine industry standards and drive positive change. There’s ample reason to celebrate. “India is the largest democracy globally, and our population is highly skilled and talented. India is the future,” declares Kumar confidently.

As India’s premier producer of shrimp feed and leading exporter of shrimp products, Avanti’s impact extends far beyond economic success— it symbolizes a dedication to nourishing communities, empowering farmers, and shaping a brighter, more sustainable future for generations to come.

Want to meet the people who can accelerate your growth? You might need to make $1 million in revenue first.

“I think there’s something magical about a million dollars in terms of just showing progress and scalability of the business,” says Laura Held, a partner at the investment firm Shamrock Capital. She says $1 million in revenue before EBITDA—interest, taxes, depreciation, and amortization—is a noteworthy metric that puts you on the map for everyone from angel investors to debt financiers.

Case in point: Marilyn Adler, a founder and managing partner at Mizzen Capital— a group that invests debt into lower middle market companies, which usually generate from $1 million to $10 million of EBITDA—says $1 million in EBITDA is the minimum a company must hit for her to even consider funding them in most

“As a banker, when somebody comes to me with a low EBITDA and it’s a nice company, I’ll say, ‘Do whatever you can to try and grow the company, and let’s talk in a couple of years,’” says Beatrice Mitchell, managing director of Sperry, Mitchell & Company, a boutique investment banking firm. “If you go below $3 million, there’s just a whole bunch of private equity groups that won’t even look at you.”

All three experts agreed that private equity isn’t right for every business. Much depends on a company’s unique long-term vision. But if you’re interested in an exit strategy, private equity can be a great way to maximize your payout.

“One thing that’s really attractive about private equity is that you can get what’s called the ‘second bite of the apple,’” Held says. “You sell a portion of your interest in the

by KRISTEN BAYRAKDARIAN

Do you have the #1 skill that drives success?

Noah Kagan was the 30th employee at Facebook, the fourth employee at mint.com, and has started many successful businesses of his own. Now, his company AppSumo does nearly $100 million in annual revenue. Along the journey, he says he’s discovered something: Success isn’t about long-term dreams; it’s about immediate action. His new book Million Dollar Weekend lays out a plan for just that. He explains.

People often say they want to start a business, but they don’t have an idea. I think ideas are bullshit.

That’s a hot take. Ideas are bullshit! There’s so many articles out there with business ideas, so how come more people haven’t become millionaires? The reality is, the idea isn’t the problem. The person is afraid—that’s the problem. They’re not prepared to ask people to be their customer, or to be their employee, or to give them feedback. Instead of thinking make a million dollars IN A

WEEKEND?

OK, you won’t earn it in a weekend. But serial entrepreneur NOAH KAGAN says you can start a thriving business quickly—if you’re willing to move fast and be uncomfortable.

by JASON FEIFER

You can do this in a weekend?

You just need to be comfortable doing it.

This is where you go to a coffee shop and ask for a discount on the coffee, right?

Yes. It’s about asking, getting rejected, and realizing rejection’s not so bad. Then you ask again. And again. As you keep doing this, you keep getting better, until you eventually find a problem that people are excited to give you money for, and you’re on your million-dollar path.

What if you’re comfortable pitching, but worried about pitching the same people over and over?

Number one, I call it the “surveyto-sale” method. Communicate with people through a survey,

It seems like your message is: Don’t get caught up in what you need later, because there’s a lot to do now. Along

Invests In Entrepreneurs

FIRST TAX-FREE MILLION

It’s legal, smart, and great for your long-term savings.

by MARK J. KOHLER, CPA, ATTORNEY

Yes, you can make a million— and more—without paying taxes on it. The wealthy do it every day, and the formula is simple: Take a business or investment idea that’s separate from your “day job,” combine it with a Roth IRA structure, give it a little time and sunshine, and voilà!

PayPal cofounder Peter Thiel famously did this, according to ProPublica. He turned a $2,000 Roth into $5 billion, by using his Roth to fund his investment in PayPal, which grew astronomically. He never had to pay taxes on the $5 billion because it was generated from that one little $2,000 Roth (that he’d already paid taxes on when he was contributing to it). Thiel used his Roth profits to buy more shares of other startups at low prices with huge growth opportunities, and the rest is history. So how do you do something like that? Here’s a step-by-step guide.

STEP 1/

Pool your accounts.

Create a spreadsheet of all your IRA accounts, with account numbers and estimated balances. As you do this, open the proper self-directed IRA accounts based on the types of retirement funds you’re pulling together. (You’ll want a trained eye on this, so ask your accountant.) Then transfer the chosen accounts taxfree and penalty-free to the new self-directed accounts.

STEP 2/ Convert the money.

If you have any traditional IRA or 401(k) money, convert your funds into a Roth position as

soon as possible. Yes, you’ll pay some tax, but no penalties—and you’ll have frozen the value for tax purposes. You’ll never pay tax again on the future growth and value you create.

For example, say you expect a startup or real estate deal to have a significant bounce in future value. Converting the traditional IRA to Roth now, at a far lower value, allows all that future wealth to be tax-free. (Again, consult a professional as you do this.)

STEP 3/ Feed the machine.

Don’t worry about making a huge upfront investment. Just set up regular contribu-

tions to your Roth accounts. For example, a 30-year-old who starts contributing $500 a month into their Roth, at a conservative 8% annual return, will have $1M at age 65 tax-free!

Perhaps you’ve heard that you can’t contribute to a Roth if you make too much money. That’s false. You can always contribute to a Roth at any age or income level.

STEP 4/ Invest in what you know.

Here’s the real meat of this tax strategy: Your Roth isn’t relegated to stocks, bonds, mutual funds, and ETFs—which means you can also invest in “alternative investments,” just like the wealthy do.

What’s that? It’s any business (minus some limitations related to family members and personal ownership) that you think is worth investing in. You can invest your Roth in a startup, for example. If you have unique industry knowledge, or a strategic advantage with an undiscovered business opportunity, that’s your secret weapon inside your Roth.

STEP 5/ Structure it properly.

The Roth can be structured to create even more incredible benefits. The LLC is a powerful tool when combined with the Roth account, for example.

Many investors don’t realize they can combine multiple retirement accounts, including other family members’ Roth accounts, all into one LLC for more buying power and leverage. In fact, investors can combine their own personal funds with their Roth in a properly structured LLC. By using the “IRA/LLC investment structure,” self-directed IRA investors can have signing control of the LLC and even serve as manager without pay for administrative duties. This in turn makes it easier for investors to begin projects, sign contracts, access the checking account, and more quickly fund transactions. Again, consult a professional for all of this—it’s a proven strategy, but requires deep knowledge of the rules. And remember that Rome wasn’t built in a day. The Roth IRA account is not a get-rich-quick scheme. It is a way to grow generational wealth and enable you to live the life you hope to in the future.

HOW TO ASK SOMEONE

for a million dollars

Philanthropic fundraisers often get donors to give $1 million—and their tactics are useful for anyone trying to win over someone else’s dollars.

by LIZ BRODY

Short of running an online scam, how do you get someone to willingly fork over $1 million? The magic happens somewhere between dumb luck and intelligent strategy, says Wanda Urbanska, who does it regularly. She’s the director of philanthropy for North Carolina State University’s College of Engineering, and brings in large gifts for the school—but she’s also done it for other causes, including her PBS series, Simple Living with Wanda Urbanska.

No matter what you’re raising money for, she says, the same basic rules apply:

RULE 1/ Don’t let the zeroes faze you.

“One of the biggest mistakes,” Urbanska says, “is to be intimidated by wealthy donors. Walk into the room as an equal, with the attitude that you’re here to explore an opportunity of philanthropic engagement. Of course you want it to work, but if not, it doesn’t matter.”

as disingenuous, she says. Her advice: Make your intention clear quickly. “I identify myself in the first email as an advisor who helps people achieve their philanthropic ambitions. I’m very upfront.”

RULE 4/ Help them help themselves.

Ask donors lots of questions about their lives—and as you listen, look for ways that a

Charities Are Getting Down to Business

That’s

Nonprofits are struggling. That’s why more charitable leaders are taking a page from their for-profit peers—and learning how to make money.

by LIZ BRODY

Six years ago, Michelle Brown (pictured above) met with a major funder of her literacy nonprofit. She’d been counting on them to renew their grant, and there was no reason they shouldn’t.

But as the meeting began, she had that sickening, slow-motion realization that everything was about to change. In her mind’s eye, she saw millions of dollars fluttering away like a flock of geese, on to warmer waters.

She thought of William, a seventh-grader in a small, struggling Mississippi town, who was so behind in reading—the one who inspired Brown to start her nonprofit, called CommonLit. Her memories flashed through the years of winning grants and charming donors. The tens of thousands of teachers using the program for free. The measurable improvements in children. But now, her major funder was dropping off, because—as far as she could tell— philanthropists were moving on to some shinier, trendier cause. Brown walked out of that meeting knowing her budget would soon evaporate, wondering how she would support a staff of some 20 people and keep her students reading. “I never thought when I started a public charity, especially for something so basic as literacy,” she says, “that philanthropy wouldn’t come through.”

So Brown did something that had long been frowned on in the world of charities: She started thinking like a business.

On the face of it, a business mindset—which includes thinking about products to market and sell, consumers to test and please, and money to be made and not just solicited—seems antithetical to the premise of a nonprofit. The assumptions are all there in the name: Nonprofits offer social services unhindered by market forces or the “greed” (as some might say) associated with making money. A nonprofit’s mission is purely to help. But depending on generosity has always been a precarious model, and in this time of perceived economic instability, charitable giving is in a downward spiral. In 2022, donations plummeted 10.5% adjusting for inflation, according to Giving USA. “Broad public support for nonprofits has also been down this past year,” says Soraya Alexander, president of the fundraising platform Classy and COO of GoFundMe, looking back at 2023. “This has required the social sector to be more creative with how they fund their important work.”

And in reality, there’s nothing to say that charity causes and business strategies cannot coexist. Now, numerous factors are converging

to give this idea more cultural traction. Since the pandemic upended norms and life poured online, more nonprofits have started using technology and data to carry out their services—both of which lend themselves to earning revenue. The pandemic also laid bare the tenuous nature of our social safety nets—governmental and charitable— underscoring how easy it is for people to fall through the cracks. For sick people to not get the care they need, for families to go hungry, or for kids to fall behind in school. And younger generations are bringing new attitudes about purpose to the workplace. They expect their employers to have missions they believe in—to be actively working to make the world a better place—all of which is making the lines between nonprofit and for-profit causes blurrier.

Beyond these shifting notions about profit, there is a growing sense that the existing philanthropy system is faltering and outdated, including the standard practice of restricting funding, which means that even when a nonprofit does get donations, it may not be able to use them to actually keep the lights on, much less expand.

One of the most fiery advocates for rethinking charities is Dan Pallotta. With two books, TED talks with over 7.5 million views, and a new film called UnCharitable (streaming June 15), Pallotta has long argued that nonprofits are pressured to pay measly salaries, keep operating costs low, and avoid taking risks to innovate, while being expected to fill society’s greatest needs. “I look at Tesla, or Apple, or NVIDIA—where they have a massive dream and go out and raise billions of dollars in capital in order to finance that dream,” he says. “Nothing remotely like that is happening in the nonprofit sector.”

These are the kinds of things that Brown started to question after her major donor backed away. Today, she looks at that meeting as the day that “made us get our shit together.” And she’s not the only nonprofit founder who’s had a moment like this; more and more are experimenting with business strategies to accelerate their causes. As you’ll read, charities are doing everything from salvaging medicine to drilling wells in Africa to seeking a cure for cancer. But to succeed, they need to challenge some of the major dogmas that have dominated the charity space for decades. Here are three.

CHARITY DOGMA/ Your “customers” can’t pay.

Anonprofit founder rarely wants to serve “paying customers.” In fact, it’s the opposite: They want to serve the people who cannot pay.

That’s how Brown got into charity. She signed up for Teach for America and in 2009, at 22 years old, ended up in Itta Bena, Mississippi. That’s where she met William, the seventh-grader at his wits’ end with reading. Stuck in the remedial class, he was starting to get into trouble. One day, Brown was teaching the advanced reading students and they were animatedly discussing Anne Frank’s diary when she saw William looking in from the outside, dejected. People talk about their call to action, the life whisper, the moment of obligation; this was hers. Despite the rules, she invited him into the classroom. “I swear to you,” she says, “I’ve never seen a child go from being so shut down to becoming alive with questions, talking to his peers, and using vocabulary words that I had not heard before.”

Five years later, after finishing a master’s from the Harvard Graduate School of Education, she decided to start a nonprofit so students like William wouldn’t be underestimated. She researched and developed a proven literacy program that emphasized reading as a social experience, rather than drills and exercises. There would be texts and curriculum online in multiple languages for teachers, parents, and students, all for free. At first she had no

trouble raising money, including winning a $3.89 million award from the Department of Education in 2016. But two years later, when her major funder dropped off, she learned the hard way that charity causes go in and out of style like shoes and dog breeds. Not long after, she grabbed her chief strategy officer and said, “We are now Team Money.”

Kevin Barenblat calls this moment “nonprofit judo.” He’s the cofounder and president of Fast Forward, an accelerator for charities that deploy tech to serve their beneficiaries (including CommonLit), and he’s seen many passionate founders arrive at this realization. “It’s like, how do you take what looks like weaknesses of the nonprofit model and turn it into a strength?” he says.

Team Money did that with a traditional business approach: It talked to its best customers—the tens of thousands of teachers using its program for free—and learned what other problems these people had. CommonLit then developed a robust suite of services, which it began selling to schools. “If they use it with fidelity,” says Brown, “we see the outcomes from children dramatically increase, so it’s driving revenue and impact all at once—a double bottom line.”

Earned revenue is hardly a new idea for nonprofits. It’s part of the recipe—along with government grants, foundation and corporate philanthropy, and individual donations—that many use to sustain themselves. In fact, in 2019, 49% of total revenue came from fees for programs, according to the National Council of Nonprofits. What’s changing is the entrepreneurial mindset that founders are bringing to their earned revenue streams. Instead of approaching them as trickling sideline operations, they’re building products with plans to scale and sell them to nontraditional customers. Not only does the money make a nonprofit organization more financially secure, but it frees them from needing “restricted donations”—funds designated only for certain programs or initiatives, which must be documented to the penny. Although these funds are common in the sector, they often hamstring charities trying to grow and improve their operations.

CommonLit’s strategy—of finding other problems it can solve for customers who can pay—has been repeated in many other nonprofits. SIRUM is a good example. The organization helps give millions of dollars of unused, perfectly good medicines (unexpired, no controlled substances) to people who can’t afford them. It does this by getting surplus drugs from manufacturers and healthcare facilities, and then, through partnerships with charity clinics and pharmacies, distributing those medications to the patients. At the beginning, the model was simple: The drug donation process happened for free. This is still true, but SIRUM discovered another option. The manufacturers and healthcare facilities also had drugs they couldn’t donate— expired or otherwise unusable—and had to pay a company to collect and destroy them. So SIRUM created a new service: It would accept all surplus medications—the stuff worth donating and the stuff to trash—and take care of the courier pickup, shipping, logistics, and record-keeping. But this new service would come with a fee.

“They’re like, ‘Wait, I have to pay to donate to you? This a joke, right?’” says Adam Kircher, one of SIRUM’s three founders. But once he showed the manufacturers and healthcare facilities how this would save them time and money, many got on board. Kircher is currently exploring other ways to drive revenue, including potentially selling SIRUM’s data to predict drug shortages, for example. Today, earned revenue makes up about 20% to 30% of the nonprofit’s core operating budget, excluding some hefty one-time expenditures, but Kircher hopes that will get to 100%.

Still, for every nonprofit like CommonLit or SIRUM that finds earned revenue, there are many others that hit walls. Not all have

something to sell, or clients who can become customers. Not all have systems and cultures to support this pivot, or donors who will tolerate years of experimentation and market research. And very few have the resources to iterate, collect data, and improve efficiencies, the way for-profit companies do. “People want the impact data, but they’re not going to fund the mileage reimbursements and everything else it costs to get it, because that’s not sexy,” says Sarah Evans, who’s working on creating earned revenue for her nonprofit Well Aware, which drills wells and builds water systems with long term maintenance support in East Africa. When Well Aware collects impact data, for example, they have to spend time working in the villages to figure out metrics like how much the clean water is reducing disease and how much time it saves farmers to not have to walk so far for water, and then have that data analyzed and presentable. She makes it happen, but it costs thousands of dollars a year.

CHARITY DOGMA/ Never spend on overhead!

Charity websites often make promises like “98 cents of every dollar you give goes to the hungry children.” That sounds great, right? If you donate your hardearned money, you want it to go directly to the kid you saw in a heart-wrenching photo, whose big eyes are filled with the sediments of hardship.

“But they’re not selling the impact that they’re making. They’re selling how low their overhead is,” Pallotta says. Why do nonprofits talk like this? Because the public has been trained to look for it. Charities that spend “too much” on administration have been criticized in the press, and it affects their scores from rating organizations like Charity Navigator and Charity Watch. And although that’s starting to change, the myth of overhead persists, and nonprofits feel its pressure. The result is that they must figure out how to achieve their ambitious goals, even though they can barely afford the staff and resources to do it. As GoFundMe and Classy’s Alexander says, “The misguided focus on low overhead limits the sector’s ability to scale its impact effectively.”

For one, employees are expected to work for passion. “You can’t get paid a living wage,” says Jody Levison-Johnson, president and CEO of Social Current, which works with a network of more than 1,800 human and social services organizations. “People are leaving to go work at Amazon, where there’s less stress and more money.” Low salaries make it challenging to attract top talent from the business world who could help, say, in finance, fundraising, and product development. Paul Blavin, a philanthropist and businessman, has seen this firsthand, having sat on the boards of multiple nonprofits. “I remember one where they were trying to recruit a development officer and were very much focused on, ‘Well, we need to cap the salary.’ And I’m like, ‘If we could pay them a million dollars a year and they could raise five, God bless them, let’s do it,’” he says. “There’s no difference between a social venture and a for-profit venture in that the results are going to be driven by the people.”

But there’s no easy fix for a strapped founder, as Vikas Birhma learned. His small nonprofit, Gramhal, aims to make technology that helps farmers in India. But his underpaid staff was rarely sticking around to finish projects. “We couldn’t get good talent to even apply,” he says. So he’s now attempting a high-risk experiment: In October 2023, he greatly raised the salaries he’s paying, sometimes by as much as 100%. His hope is to maintain his unrestricted funding (fellowships, accelerators, and competitions) long enough

I or where have a is

“I look at Tesla or Apple, where they have a massive dream and raise billions to finance it. Nothing like that is happening in the nonprofit sector.”

to prove the impact this change will make. Then it will be easier to raise other kinds of donations. “We’re now hiring at market rate salaries,” Birhma says, “and these roles are critical because we’ve achieved product-impact fit—and it’s time to take the next leap.”

How can other nonprofits tackle this problem? Pallotta suggests transparency and dialogue. “Develop a donor literacy program and put your entire staff, board, and all your major donors through it,” he says. “If you can get them excited about these new ways of thinking, now you’ve got permission as a community to move forward with bold ideas.” Brown is doing that at CommonLit. When she takes gifts now, she brings the donors along on her thinking: “This is the plan. This is what we’re going to spend it on. Are you in? Are you out? Like, are we in a relationship or not?”

CHARITY DOGMA/ Investors are for businesses, not nonprofits.

In business, everyone is familiar with venture capital: An investor puts money into a startup, hoping to supercharge growth and lead to an exit where everyone profits.

But in nonprofits, there’s an increasing embrace of something called philanthropic venture funds. In this case, “investors” give nonrestricted dollars to a fund, which is set up by a charity. That fund then invests in new projects that help the organization grow and improve its impact.

The concept isn’t new, and the term “venture philanthropy” itself is credited to John D. Rockefeller III in 1969. But it’s taken on a fresh life recently, as successful executives and entrepreneurs apply a businesslike approach to their philanthropy.

Thomas Vozzo is a great example. His long corporate career ended in 2011 as executive vice president of the $13.5 billion professional services company Aramark. Then he became the volunteer CEO of Homeboy Industries, a nonprofit that offers support to formerly incarcerated gang members. Homeboy provides services such as therapy and tattoo removal, but its most unique impact takes place in its stores. It owns and operates 14 small businesses, such as an electronics recycling business and a bakery, where former gang members can work and develop professional skills. Most of Homeboy’s donors wanted to fund the services, but Vozzo was itching to actually grow these businesses and start new ones. His solution? To set up a venture philanthropy fund dedicated

to doing just that. “For-profit America knows that they need to spend money to make money,” he figured. “Well, let’s use that same mentality in the nonprofit world.” The idea excited his corporate donors, and with $12 million so far, the fund helped Homeboy open a new dog-grooming enterprise, among others.

For any nonprofits considering venture philanthropy, Sean Doherty has advice: Be very specific about your goal. That way, just like a for-profit venture fund, you can attract the right investors, identify opportunities that appeal to them, and create more impact for everyone. Doherty himself set up a fund for the JDRF, a foundation that researches a cure for Type 1 diabetes. The former general counsel for Bain Capital, Doherty has a son with Type 1 diabetes, so the cause is personal to him. And he was frustrated that virtually no biotech companies were working on a cure. “Unless we change this simple fact, we are whistling in the wind,” he says.

Medical nonprofits are ripe for this kind of philanthropy, given how expensive drugs are to develop but how potentially lucrative it is when done successfully. It’s also a way to help scientists focus on the disease they’re advocating for. The Multiple Myeloma Research Foundation (MMRF) also has a venture philanthropy fund, which has raised more than $17 million and already had two exits, kicking back $4 million for more research. And after eight years, the Type 1 diabetes fund has about $200 million in assets and a portfolio of 38 companies, which have returned $89 million into play. More importantly, they’ve spawned exciting discoveries in the search for cures.

MMRF’s founder, Kathy Giusti, urges other nonprofit founders to explore venture philanthropy as an option. The author of Fatal to Fearless, Giusti started the nonprofit after being diagnosed at age 37 with multiple myeloma and told she only had three years to live. “One of my big regrets,” she says, “is that I didn’t do it sooner.”

These days, CommonLit is still fulfilling its mission of helping children to read—but it’s also getting good at making money. Once it started selling its literacy programs to schools, it was technically competing against everyone in the for-profit ed tech sector. So just like any other founder, Brown has had to find her competitive advantage. And here, being a nonprofit helps. She wins customers by pricing her product lower and selling it as a research-backed, mission-driven program that improves reading at $4 per student, the cost of a paperback book.

Currently, revenue from CommonLit’s products covers 63% of operations, which include paying a staff of nearly 130 at market salaries. Brown expects revenue to cover 100% of operations by 2026. In the meantime, the program is in 2,400 schools, and has helped more than 5 million students become more proficient. “Our revenue is our lifeline and it’s our future,” Brown says. “Without it, we would definitely not be here.”

Pallotta is heartened by stories like this and is trying to create more of them using UnCharitable. In an ambitious initiative, the filmmakers are teaming up with the nonprofit Social Current to develop teaching tools to educate the next generation of nonprofit leaders, and work deeply with five pilot cities on new ways to address their social needs. “Entrepreneurs to me are the real heroes,” Pallotta says. “Nonprofit is just a tax status. So if you’re passionate about something that can be monetized, do it as a forprofit. Whichever way you go, put all your frustration and all your love and courage and imagination into it, and you will make a great difference. And when you do, the money will follow.”

Liz Brody is Entrepreneur’s contributing editor.

The Top 150 New and Emergıng Franchises

Want to buy a young, exciting franchise? This ranking of top brands should be your first stop. by

TRACY STAPP HEROLD

Franchising is full of decades-old brands that have proven themselves—so why would someone consider buying a franchise from a brand-new franchisor instead? There are many reasons: Although newer franchise concepts may come with higher risk, you can usually have more influence over how the brand develops, you may get in at a lower price than future franchisees will, and you have more available territories to choose from. If that sounds appealing, there are plenty of new franchise brands to consider: An estimated 300 companies begin franchising every year, and of the 1,389 franchisors that applied for our 2024 Franchise 500 ranking, nearly 17% had started franchising in the past five years. So which are the strongest new and emerging franchise con-

cepts? That’s what we assessed in this ranking, which is based on the scores that these companies received during the Franchise 500 evaluation process. We looked at more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. Only brands that started franchising in 2019 or later were considered.

Getting in on the ground floor with the next hot concept can be an exciting prospect, but keep in mind that this list is not intended as an endorsement of any particular franchise, rather just as a starting point for your own research. Before investing in any franchise, make sure you carefully read the company’s legal documents, consult with an attorney and an accountant, and talk to existing franchisees.

1

Koala Insulation Insulation services FRANCHISING SINCE 2020 STARTUP COST

$182.6K-$210.5K TOTAL UNITS (Franchised / Co.-Owned) 384/0

2

Jeremiah’s Italian Ice Italian ice, gelati, soft ice cream

FRANCHISING SINCE 2019

STARTUP COST

$325.6K-$696K

TOTAL UNITS (Franchised / Co.-Owned) 100/19

3

Randy’s Donuts Doughnuts, breakfast sandwiches, croissants, coffee, tea, drinks

FRANCHISING SINCE 2019 STARTUP COST

$606K-$1.2M TOTAL UNITS (Franchised / Co.-Owned) 23/9

4

Your CBD Store CBD stores

FRANCHISING SINCE 2020 STARTUP COST

$93.3K-$148.6K

UNITS (Franchised / Co.-Owned) 289/1

5

Mighty Dog Roofing Residential and commercial roofing services, siding, windows, gutters, and solar

SINCE

$214.5K-$319.99K

/ Co.-Owned) 90/0

6 KidStrong Physical fitness, leadership, and confidence-building training for children FRANCHISING SINCE 2019

STARTUP COST

$313.2K-$664.2K TOTAL UNITS (Franchised / Co.-Owned) 93/9

7

Sign Gypsies

Special-occasion yard sign rentals

FRANCHISING SINCE 2020

STARTUP COST

$4.2K-$9.9K

TOTAL UNITS (Franchised / Co.-Owned) 715/1

8

Shoot 360 Basketball training facilities

FRANCHISING SINCE 2019

STARTUP COST

$754K-$2.6M

TOTAL UNITS (Franchised / Co.-Owned) 29/2

9 QC Kinetix

Regenerative medicine and nonsurgical pain management therapies

FRANCHISING SINCE 2020

STARTUP COST

$227.3K-$495.9K

TOTAL UNITS (Franchised / Co.-Owned) 187/12

10

Ellie Mental Health Outpatient mental health services

FRANCHISING SINCE 2021

STARTUP COST

$278.5K-$480.4K

TOTAL UNITS

(Franchised / Co.-Owned) 122/26

11

The Vitamin Shoppe Vitamins, minerals, supplements, sport nutrition products

FRANCHISING SINCE 2021

STARTUP COST

$528.9K-$976.9K

TOTAL UNITS

(Franchised / Co.-Owned) 31/673

12

Richard’s Painting Painting

FRANCHISING SINCE 2019

STARTUP COST

$60.2K-$106.5K

TOTAL UNITS

(Franchised / Co.-Owned) 18/2

WE ASKED TOP NEW AND EMERGING FRANCHISORS

/

Why did you choose to franchise your business?

THREE ANSWERS/

“Franchising was a great way to scale our business quickly. We knew we were onto something with the amazing success of our corporate stores and wanted to spread it nationwide as quickly as possible. Franchising was the clear path for our business model.”

—JUSTIN CROWELL, cofounder, QC Kinetix (No. 9)

—JUSTIN 9)

“I built this concept to be franchised from the start. I had always loved the franchise model and knew that I wanted to connect with individuals who had that entrepreneurial spark. In addition, the consistency and high ability to replicate made it a perfect fit as a franchise model.”

—MICHELE HENRY, founder and CEO, Face Foundrie (No. 57)

—MICHELE HENRY, founder and CEO, Face

“I love supporting and mentoring entrepreneurs. With franchising, I am able to partner with driven, community-minded people to help them achieve entrepreneurial success while also having a tremendous positive impact.”

—KRISTEN founder and Tierra Encantada (No. 104)

—KRISTEN DENZER, founder and CEO, Tierra Encantada (No. 104)

The Top 150 New and Emerging Franchises

Send Me a Pro In-home services

FRANCHISING SINCE

STARTUP COST

$49.1K-$84.8K

TOTAL UNITS

(Franchised / Co.-Owned)

Strickland Brothers 10 Minute Oil Change

Oil changes and routine auto maintenance

FRANCHISING SINCE

STARTUP COST

$217.9K-$1.9M

TOTAL UNITS

(Franchised / Co.-Owned)

Combo Brands

Ghost kitchens/ restaurants, personalcare services, homeimprovement services, children’s enrichment services, pet care

FRANCHISING SINCE

STARTUP COST

$7.8K-$353K

TOTAL UNITS

(Franchised / Co.-Owned)

Hello Sugar Traditional waxing and sugaring

FRANCHISING SINCE

27

Dave’s Hot Chicken Nashville hot chicken FRANCHISING SINCE 2019

STARTUP COST

$615.8K-$1.8M TOTAL UNITS (Franchised / Co.-Owned) 133/19

28 Fundraising University Fundraising FRANCHISING SINCE 2020 STARTUP COST $91.8K-$98.5K

TOTAL UNITS (Franchised / Co.-Owned) 43/6

29

Dumpster Dudez Residential and commercial dumpster rentals FRANCHISING SINCE 2019

STARTUP COST

$345.1K-$403.7K

TOTAL UNITS (Franchised / Co.-Owned) 17/1

30

Blingle! Holiday, landscape, patio, permanent, and event lighting FRANCHISING SINCE 2021 STARTUP COST

$280.97K-$419K

13

Alloy Personal Training Small group personal training

FRANCHISING SINCE 2019

STARTUP COST

$185.3K-$452.4K

TOTAL UNITS (Franchised / Co.-Owned) 24/1

14

KeyGlee

Wholesale real estate

FRANCHISING SINCE 2020

STARTUP COST

$122.3K-$296.6K

TOTAL UNITS

(Franchised / Co.-Owned) 98/5

15

Blue Kangaroo Packoutz Contents restoration

FRANCHISING SINCE 2019

STARTUP COST

$221.8K-$431.4K

TOTAL UNITS (Franchised / Co.-Owned) 91/1

16

Augusta Lawn Care Services Lawn care and landscaping

FRANCHISING SINCE 2019

STARTUP COST

$12.99K-$82.5K

TOTAL UNITS (Franchised / Co.-Owned) 126/7

17

Prime IV Hydration & Wellness IV therapy, cryotherapy, peptides

FRANCHISING SINCE 2020

STARTUP COST

$164.6K-$599.7K

TOTAL UNITS (Franchised / Co.-Owned) 76/1

18

Bath Tune-Up

Bathroom remodeling

FRANCHISING SINCE 2020

STARTUP COST

$104.9K-$158.9K

TOTAL UNITS

(Franchised / Co.-Owned) 52/0

19

Everbowl Health food bowls

FRANCHISING SINCE 2019

STARTUP COST

$133.9K-$451.6K

TOTAL UNITS

(Franchised / Co.-Owned) 64/2

20

American Freight Furniture, Mattress and Appliance Furniture, mattresses, and appliances

FRANCHISING SINCE 2020

STARTUP COST

$496.9K-$942.9K

TOTAL UNITS

(Franchised / Co.-Owned) 7/355

STARTUP COST

$61.6K-$482.7K

TOTAL UNITS (Franchised / Co.-Owned) 51/13

25

All Dry Services

Water and mold remediation and restoration

FRANCHISING SINCE 2020

STARTUP COST

$87.7K-$275.3K

TOTAL UNITS (Franchised / Co.-Owned) 125/1

26

ISI Elite Training Group fitness

FRANCHISING SINCE 2019

STARTUP COST

$327.4K-$687K

TOTAL UNITS (Franchised / Co.-Owned) 32/2

TOTAL UNITS (Franchised / Co.-Owned) 48/0

31

Hangar 54 Pizza Pizza, chicken, breakfast FRANCHISING SINCE 2020

STARTUP COST $9K-$349K

TOTAL UNITS (Franchised / Co.-Owned) 114/1

32

StretchMed Assisted stretching FRANCHISING SINCE 2019

STARTUP COST $70.4K-$185.5K

TOTAL UNITS (Franchised / Co.-Owned) 25/1

→ DAVE’S HOT CHICKEN

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1

REIMAGINED HIGH INTENSITY INTERVAL TRAINING

We pack transformative strength training and endurance boosting cardio into 35 adrenaline pumping minutes.

3 2

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Expedited workouts mean more classes in a day, serving more members and prospects.

ADDICTIVE WORKOUTS FUEL MEMBER LOYALTY

The Basecamp experience is unlike any in the market with immersive lighting, a state-of-the-art app and custom DJ sets for each workout.

$250.8K-$474.8K

UNITS (Franchised / Co.-Owned) 53/0

The Top 150 New and Emerging Franchises

39

Super Soccer Stars Soccer programs FRANCHISING SINCE 2022

STARTUP COST

$72.8K-$105.8K TOTAL UNITS (Franchised / Co.-Owned) 47/13

40

Gatsby Glass

Frameless glass showers and shower doors, custom interior glass, railings, doors, mirrors, commercial glass partitions and walls

FRANCHISING SINCE 2022

STARTUP COST

$209.8K-$358.2K

UNITS (Franchised / Co.-Owned) 11/0

41

The Now Massage Massage services

FRANCHISING SINCE 2019

STARTUP COST

$477.5K-$819.1K

TOTAL UNITS (Franchised / Co.-Owned) 44/4

42

Temporary Wall Systems

Rental, installation, and service of modular containment systems

FRANCHISING SINCE 2021

STARTUP COST

$145.4K-$352.5K

TOTAL UNITS (Franchised / Co.-Owned) 75/0

43

Vicky Bakery

Baked goods, breads, pastries, sandwiches, coffee

FRANCHISING SINCE 2021

STARTUP COST

$626.7K-$1.2M

TOTAL UNITS

(Franchised / Co.-Owned) 11/10

44

Scoop Soldiers Pet waste removal

FRANCHISING SINCE 2019

STARTUP COST

$68.3K-$118.3K

TOTAL UNITS

(Franchised / Co.-Owned) 46/58

WE ASKED TOP NEW AND EMERGING FRANCHISORS/

What unexpected challenges have you faced since franchising, and how have you responded to them?

THREE ANSWERS/

“Our biggest challenge was figuring out who would be the best fit for our model and who to cater the message to. We’ve landed on corporate refugees and people who want to leave their 9-to5, because our franchise allows people to work part time initially, and eventually they can quit their job and go full time.”

—NEEL PAREKH, CEO, MaidThis Cleaning (No. 58)

NEEL PAREKH, CEO, MaidThis (No. 58)

“When we helped our first franchisee go live, we realized there were several aspects that we needed to streamline. We decided to create a ‘business-in-a-box’ concept where we prenegotiated programs with vendors for payroll, bookkeeping, marketing, insurance, etc., so franchisees can basically sign on the dotted line.”

—JEFF GARTNER, cofounder and CEO, Hudson Valley Swim (No. 77)

—JEFF cofounder and Hudson Valley Swim

“Selecting the right franchisees. Initially, our enthusiasm led us to welcome anyone with interest, but we quickly learned that alignment in vision and values is critical. We introduced a comprehensive vetting system that goes beyond financial qualifications to assess a candidate’s dedication to service excellence. This shift has been a game-changer.”

—AL NOUFARO, franchisor and CEO, Junk Chuckers (No. 115)

45

Purchase Green

Artificial Grass

The Top 150 New and Emerging Franchises

Franchise expansion has become increasingly international in the last few years. Here are the 25 brands with the greatest franchise growth outside of the U.S. and Canada from July 2021 to July 2022.

Sales, installation, and maintenance of artificial turf, putting greens, and sports turfs

FRANCHISING SINCE 2020

STARTUP COST

$110.1K-$550.7K

TOTAL UNITS

(Franchised / Co.-Owned)

27/21

46

Detroit Wing Company

Chicken wings

FRANCHISING SINCE 2021

STARTUP COST

$378.9K-$747.6K

TOTAL UNITS

(Franchised / Co.-Owned) 23/1

FRANCHISING SINCE 2019

STARTUP COST

$67.1K-$83.2K

TOTAL UNITS (Franchised / Co.-Owned) 13/1

48 Big Chicken Chicken sandwiches and tenders, salads, sides, desserts

FRANCHISING SINCE 2021

STARTUP COST

$681.5K-$1.5M

TOTAL UNITS

(Franchised / Co.-Owned) 8/3

FRANCHISING SINCE 2021

STARTUP COST

$85.8K-$116K

TOTAL UNITS (Franchised / Co.-Owned) 51/6

50

The DripBar IV vitamin therapy

FRANCHISING SINCE 2019

STARTUP COST

$142.1K-$404.8K

TOTAL UNITS (Franchised / Co.-Owned) 57/1

2021

STARTUP COST

$148.5K-$242.3K

TOTAL UNITS

(Franchised / Co.-Owned) 13/3

52 i4 Search Group Healthcare recruiting FRANCHISING SINCE 2021

STARTUP COST

$66.8K-$113.6K

TOTAL UNITS

(Franchised / Co.-Owned) 30/0

Outsourced IT support for

FRANCHISING SINCE 2019

STARTUP COST

$100K-$124.9K

TOTAL UNITS (Franchised / Co.-Owned) 11/1

54 Website Closers Business brokerages for tech and internet businesses

FRANCHISING SINCE 2020 STARTUP COST

$67.7K-$112.6K TOTAL UNITS (Franchised / Co.-Owned) 31/1

55 Hangry Joe’s Hot Chicken Hot chicken sandwiches FRANCHISING SINCE 2021 STARTUP COST

$238.5K-$421K TOTAL UNITS (Franchised / Co.-Owned) 43/1

56 Rumble Boxing Boxing fitness studios FRANCHISING SINCE 2021 STARTUP COST

$405.6K-$4.2M TOTAL UNITS (Franchised / Co.-Owned) 52/15

57 Face Foundrie Facials, lash and brow services, skin care FRANCHISING SINCE 2020

COST $255.8K-$563.5K TOTAL UNITS (Franchised / Co.-Owned) 24/5

58 MaidThis Cleaning Vacation-rental and residential cleaning FRANCHISING SINCE 2020 STARTUP COST $50.4K-$72.7K TOTAL UNITS (Franchised / Co.-Owned) 15/2

59 Groovy Hues Painting, power washing, gutter and shutter replacement, carpentry FRANCHISING SINCE 2022

STARTUP COST

$223.8K-$420.8K TOTAL UNITS (Franchised / Co.-Owned) 10/0

60 DumpStor Dumpster and jobsite storage container rentals FRANCHISING SINCE 2021 STARTUP COST

$112.8K-$458.95K TOTAL UNITS (Franchised / Co.-Owned) 8/3

$79.4K-$171.3K

67

Carousel’s Soft Serve Icery Soft-serve ice trucks

FRANCHISING SINCE 2021

STARTUP COST

$75.8K-$99.8K

TOTAL UNITS (Franchised / Co.-Owned) 7/0

68

SnapHouss Real estate photography, videography, 3D virtual tours, aerial/drone photos/ videos

FRANCHISING SINCE 2021

STARTUP COST

$31.2K-$60.2K

TOTAL UNITS

(Franchised / Co.-Owned) 33/1

69

Top Rail Fence

Residential and commercial fencing

FRANCHISING SINCE 2022

STARTUP COST

$103.4K-$219.2K

TOTAL UNITS (Franchised / Co.-Owned) 51/0

70

Heyday

Facial services and skincare products

FRANCHISING SINCE 2021

STARTUP COST

$966K-$1.2M

TOTAL UNITS (Franchised / Co.-Owned) 19/10

71

Basecamp Fitness

Fitness studios

FRANCHISING SINCE 2019

STARTUP COST

$507.8K-$895.1K

TOTAL UNITS

(Franchised / Co.-Owned) 9/5

72

FunBox

Outdoor bounce parks and indoor inflatable amusement parks

FRANCHISING SINCE 2022

$69.7K-$101.2K

UNITS

/ Co.-Owned) 30/7

STARTUP COST

$572K-$795K

TOTAL UNITS

(Franchised / Co.-Owned) 16/3

WE ASKED TOP NEW AND EMERGING FRANCHISORS/

As an emerging franchise, how do you compete against more established franchises?

THREE ANSWERS/

“To set ourselves apart, we’ve embarked on various initiatives that inject energy into the brand. For example, our partnership with Blue Origin. What other concept can say that their consumers can send postcards into outer space? It’s all about embracing creativity, leveraging our connections, and constantly seeking opportunities to surprise and delight our guests.”

—Josh Halpern, CEO, Big Chicken (No. 48)

—Josh Halpern, CEO, Chicken (No. 48)

“We market ourselves as the ‘anti-franchise franchise,’ and I believe that lends to a slightly different market than most franchise brands. We also don’t require previous restaurant experience—just a desire for community engagement and an entrepreneurial spirit. We have to want to have a beer with you first and foremost.”

—Matteo Rachocki, CEO, Voodoo

—Matteo Rachocki, CEO, Voodoo Brewing Co. (No. 84)

“Franchising is a relationship business. The business model and the unit economics need to be competitive, but we will always set ourselves apart by the relationships we develop with candidates and franchisees. Being a young system gives us some advantages, like having an accessible leadership team, being flexible in direction, and having lots of green space in major markets.”

—Beck Miller, senior director of franchising, LaundroLab (No. 143)

—Beck senior LaundroLab

The Top 150 New and Emerging Franchises

75

Rolling Suds Power washing

FRANCHISING SINCE 2022

STARTUP COST

/ Co.-Owned) 13/6

$144.8K-$197.7K TOTAL UNITS (Franchised / Co.-Owned) 18/1

76 Grand Welcome Vacation rental property management FRANCHISING SINCE 2019

STARTUP COST

$37.9K-$169.8K

TOTAL UNITS

(Franchised / Co.-Owned) 44/8

77

Hudson Valley Swim Swimming and water safety lessons for all ages

FRANCHISING SINCE 2022

STARTUP COST

$79.5K-$119.5K

TOTAL UNITS (Franchised / Co.-Owned) 3/7

78

Costa Oil Oil-change services

FRANCHISING SINCE 2020

STARTUP COST

$155.8K-$1.9M

TOTAL UNITS

(Franchised / Co.-Owned) 28/15

79

OTA World Massage chair and accessories stores

FRANCHISING SINCE 2019

STARTUP COST

$59K-$156K

TOTAL UNITS (Franchised / Co.-Owned) 23/0

80

Hello Garage Garage renovation

FRANCHISING SINCE 2020

STARTUP COST

$131.6K-$160.9K

TOTAL UNITS

(Franchised / Co.-Owned) 141/10

81

Stride Fitness

Treadmill-based interval training

FRANCHISING SINCE 2019

STARTUP COST

$379.9K-$554.7K

TOTAL UNITS (Franchised / Co.-Owned) 19/1

82

Beef-a-Roo

Burgers, roast beef sandwiches, milkshakes, fries, salads

FRANCHISING SINCE 2022

STARTUP COST

$344.7K-$1.4M

TOTAL UNITS

(Franchised / Co.-Owned) 2/12

83

Modern Market Eatery Healthful food

FRANCHISING SINCE 2020

STARTUP COST

$728.5K-$1.5M

TOTAL UNITS (Franchised / Co.-Owned) 3/23

84

Voodoo Brewing Co. Craft brew pubs

FRANCHISING SINCE 2019

STARTUP COST

$479K-$1.1M

TOTAL UNITS

(Franchised / Co.-Owned) 11/5

85

Boss’ Pizza and Chicken Pizza and broasted chicken restaurants

FRANCHISING SINCE 2021

STARTUP COST

$137.2K-$538.5K

TOTAL UNITS

(Franchised / Co.-Owned) 4/8

86

Accelerated Waste Solutions Junk removal and apartment/condo doorstep trash pickup

FRANCHISING SINCE 2019

STARTUP COST

$88.99K-$325K

TOTAL UNITS (Franchised / Co.-Owned) 27/5

87 Team Up Athletics Team sport jerseys, apparel, and equipment

FRANCHISING SINCE 2022

STARTUP COST

$71.5K-$239.2K

TOTAL UNITS (Franchised / Co.-Owned) 10/1

88 ManageMowed Commercial landscape management

FRANCHISING SINCE 2019

STARTUP COST

$114.8K-$245.8K

TOTAL UNITS (Franchised / Co.-Owned) 20/2 89 Fuse HVAC & Appliance Repair HVAC and appliance

UNITS (Franchised / Co.-Owned) 13/1

→ ALOHA POKE CO.

“There’s genuine compassion from Pure Barre. They’re vested in all aspects of the business. We exceeded goals. We broke records. That was really a bonus for everything else that came with it, which was the joy of the studio.”

“From the weekly & daily calls, to emails, to having our management team very accessible... there’s so many resources. We really love how much they care about the franchisee, the studios, and how intimate they are with it.”

studio. I awareness

there’s so and how I can reach out to the corporate team and immediately

“I can reach out to the corporate team and immediately get responses, usually within minutes. It’s kind of wild.”

calls

also in-studio visits from our

BODY FIT TRAINING

“I chose BFT due to Xponential’s track record in scaling other brands and because the BFT workout aligns with my own fitness interests as well as the growing awareness for strength training.”

Kevin

Boesen,

Multi-Unit BFT Franchise Owner,

Arizona

“I own different franchises and different concepts outside of Xponential. Their team has been fantastic for support. I’ve been with the franchise since 2015. I’ve watched it grow. My studios have grown. I started with one unit, now up to seven, and recently acquired the master franchise rights for Switzerland, Ireland, and France.” “Not only just through Zoom calls and speaking with the StretchLab team, but also in-studio visits from our regional sales manager, Jason, and they respond quickly. They’re always available and it’s something that, like I said, has helped us continue to grow and solve a lot of issues that we’ve seen along the way.” “I feel like we have such a connection with every person on the corporate team that there’s always someone that can get back to us a timely manner. But then just the weekly calls, the group calls for open studios or pre-sale studios, the recordings of these calls on the LMS platform that we use to share information & train with, are also so helpful.”

to the the we with, are also so helpful we our doors because of the robust and we’ve ever since. So literally the

“We were successful from the day we opened our doors because of the support we received - we opened with a really robust membership and we’ve just grown ever since. So literally the first month we opened!”

Karlos Galvan & Frank Amaya, Row House Tustin and Temecula, CA

Megan and Rob Jones, Pure Barre Raleigh and Cary Crescent

Chris Fichaud, Multi-Unit Club Pilates Owner, TX & International Master Franchise Owner

Matt Duffy, Multi-Unit StretchLab Owner, Tucson, AZ

Tania Rupp, Multi-Unit YogaSix Owner, Orlando, FL

Michelle Littlewood, Pure Barre Bend, OR

Lanie Marinelli, Multi-Unit Pure Barre Franchise Owner, Colorado

There’s genuine compassion

The Top 150 New and Emerging Franchises

96

Grimaldi’s Coal-Brick Oven Pizzeria Pizza restaurants FRANCHISING SINCE 2019

STARTUP COST

$1.4M-$1.8M TOTAL UNITS (Franchised / Co.-Owned) 2/45

97 Taxi Mom Transportation service for school-age children

FRANCHISING SINCE 2019

STARTUP COST

$70.9K-$129.6K

TOTAL UNITS (Franchised / Co.-Owned) 7/5

98 Garage Kings Garage floor coatings, cabinets, and storage solutions

FRANCHISING SINCE 2020

STARTUP COST

$176.4K-$235.2K

40/0

TOTAL UNITS (Franchised / Co.-Owned) 20/0

99 M14Hoops

Youth basketball training and development

FRANCHISING SINCE 2021

STARTUP COST

$97.4K-$127.5K

TOTAL UNITS

(Franchised / Co.-Owned) 12/2

100

Rubbish Works Eco-friendly junk removal and dumpster rental

FRANCHISING SINCE 2020

STARTUP COST

$106.4K-$144K

TOTAL UNITS

(Franchised / Co.-Owned) 10/0

101

Hydrate IV Bar IV therapy spas FRANCHISING SINCE 2020

STARTUP COST

$238.1K-$454K

TOTAL UNITS

(Franchised / Co.-Owned) 6/4

102

1-800-Textiles

Textile restoration FRANCHISING SINCE 2022

STARTUP COST

$71.7K-$739.5K

TOTAL UNITS

(Franchised / Co.-Owned) 47/0

103

Zion Healing Centers

Mental and behavioral health services

FRANCHISING SINCE 2021

STARTUP COST

$320.2K-$508.3K

TOTAL UNITS

(Franchised / Co.-Owned) 10/1

104

Tierra Encantada Spanish immersion early education

FRANCHISING SINCE 2019

STARTUP COST

$1.5M-$2.9M

TOTAL UNITS

(Franchised / Co.-Owned) 2/9

→ LITTLE KITCHEN ACADEMY

Join 750 franchise founders and senior executives at the 12th Annual Springboard Event as we take part in sessions, breakout programs and expert panels! You’ll network with the best in franchising as they share success stories and tips to avoid pitfalls that could be detrimental to the growth of your brand. There truly is no comparable event for emerging and re-emerging franchisors. To register or for more information visit FRANCHISORS, START YOUR ENGINES!

The Top 150 New and Emerging Franchises

113

Wonderly Lights

Holiday and exterior lighting services

FRANCHISING SINCE 2022

STARTUP COST

$66.4K-$82.7K

TOTAL UNITS (Franchised / Co.-Owned) 14/1

114

Wise Coatings Floor coatings

FRANCHISING SINCE 2021

STARTUP COST

$114.6K-$133.7K

TOTAL UNITS (Franchised / Co.-Owned) 14/1

115

Junk Chuckers Junk removal

FRANCHISING SINCE 2020

STARTUP COST

$39.4K-$72.8K TOTAL UNITS (Franchised / Co.-Owned) 40/2 116 Salty Paws Dog

→ SALTY PAWS

118

DryerVentz - DuctVentz

Dryer vent and air duct inspection, cleaning, and repair

FRANCHISING SINCE 2020

STARTUP COST

$68.9K-$98.9K

TOTAL UNITS

(Franchised / Co.-Owned) 11/0

119

CR3 American Exteriors

Roofing and exterior remodeling

FRANCHISING SINCE 2022

STARTUP COST

$73K-$188.3K

TOTAL UNITS

(Franchised / Co.-Owned) 8/4

120

Clozetivity

Custom closet design and installation

FRANCHISING SINCE 2021

STARTUP COST

$81.5K-$157.5K

TOTAL UNITS

(Franchised / Co.-Owned) 51/0

121

Turning Point Breakfast, Brunch & Lunch

Breakfast, brunch, and lunch restaurants

FRANCHISING SINCE 2021

STARTUP COST

$938K-$1.4M

TOTAL UNITS

(Franchised / Co.-Owned) 1/23

122

Benny’s Pizza Pizza

FRANCHISING SINCE 2019

STARTUP COST

$138.4K-$370K

TOTAL UNITS

(Franchised / Co.-Owned) 2/27

123

Puddle Pool Services

Residential and commercial pool and spa maintenance

FRANCHISING SINCE 2022

STARTUP COST

$99K-$148.9K

TOTAL UNITS

(Franchised / Co.-Owned) 12/2

124

Ideal Siding

Home siding renovation

FRANCHISING SINCE 2019

STARTUP COST

$68.5K-$107.4K

TOTAL UNITS

(Franchised / Co.-Owned) 34/0

125

Zebra Robotics

Robotics, coding, and technology education centers for grades 1 through 12

FRANCHISING SINCE 2019

STARTUP COST

$160K-$320K

TOTAL UNITS

(Franchised / Co.-Owned) 5/6

126

Level Up Automation

Design and installation of commercial and residential technology modifications and integrations

FRANCHISING SINCE 2021

STARTUP COST

$51.8K-$68.2K

TOTAL UNITS

(Franchised / Co.-Owned) 8/1

127

Access Garage Doors Garage door sales, installation, and repairs

FRANCHISING SINCE 2019

STARTUP COST

$49.99K-$99.6K

TOTAL UNITS (Franchised / Co.-Owned) 6/1

128

Dope CFO Certified Advisor

Accounting, tax, and CFO services for cannabis/ CBD/hemp businesses

FRANCHISING SINCE 2022

STARTUP COST

$57.2K-$235.8K

TOTAL UNITS (Franchised / Co.-Owned) 7/1

129 Press Waffle Co. Belgian waffles, coffee, ice cream

FRANCHISING SINCE 2019

COST $188.4K-$497.3K

UNITS (Franchised / Co.-Owned) 6/3 130 Snapchef Staffing and training for commercial kitchens FRANCHISING SINCE 2022 STARTUP COST $134.3K-$193.7K

$1.2M-$1.7M

Engineering a Better Life

Kayla Opperman put a lot of time and money into establishing her career, and she didn’t want to throw that away. But when she found a franchise that put her background to use, she was all in.

by JOHN FRANCIS

Kayla Opperman made good money at her engineering job. But when her daughter was a baby, she got tired of long hours in the office. She also recognized there was a limit to how much she could make working for someone else. “I’d worked hard to get an engineering degree,” she says, “so I didn’t want to let that go completely. But I started researching if there were any franchises that involved engineering. And that’s when I came across Snapology.”

Snapology is a kids’ STEM and robotics brand founded in 2010, and now has 130 locations around the country. But in 2018, there were no locations in Colorado, where Opperman lived, and she viewed that as a big opportunity. When she visited headquarters, she loved how happy everyone seemed, so she went for it. Six years later, she and her husband own five units, as well as one with Class 101, a college-planning franchise. Here, she talks about scaling strategies, working with your spouse, and the importance of friendships with other franchisees.

You scaled to five units pretty quickly.What was that like? Snapology has proven to be a good choice for a lot of reasons, but especially the scaling part. At first, we were kind of living off my husband’s paycheck and I was reinvesting in the business to expand more. I was in the green with my first franchise 10 months in, so bought my second franchise a year later. I bought three more units a couple of years after that, which made sense because I’d gotten to know my market and customer base, and I knew I wanted those other territories.

How did you and your husband make the decision to work together?

It just started to make sense. When COVID happened, he

started working remotely, so he got roped into my business stuff. After a while he was working full time at Snapology, and full time at his engineering job, and also taking care of two kids. So it was like, something’s gotta give. He quit maybe eight months after I bought those additional units, and it’s been great. We don’t really have a work-life balance, more like work-life integration. But that works for us. We’ll go out on a date and talk a lot about business, but that’s because we like talking about it.

Snapology was acquired by Unleashed Brands after you joined. How’s that been for you? To me, it meant more resources. I genuinely love and care about Laura Coe, the founder and now-former CEO of Snapology,

around me and more resources.

What are your plans for continued growth?

Well, we’re pretty maxed out on our territory with Snapology. I also feel like it’d be hard to own a Snapology remotely. I’m from the Chicago area, so I thought about opening one in my hometown, but I just don’t think it’s possible. But Class 101 focuses on high schoolers. At Snapology, I’m working with elementary-age kids, and eventually they’ll be the age

Do you have advice for other prospective franchisees?

Talk to other franchisees. We rely on each other for ideas, and you form a special bond when you train together. They’re my best friends now. The other thing is, when you buy a franchise, I think you need to make it your full-time commitment. When people buy a franchise while they’re still working another job, they’re so slow building it that they end up failing, because you do have to pay royalties. So I tell anyone thinking about it: You need to be all about it.

‘We Built Success on Top of Success’

Decades ago, Nicolas Estrella Sr. built an insurance company that spoke to the Hispanic community in Florida. Now, through franchising, his son is taking their strategy nationwide. by KIM KAVIN

When Cuban immigrant Nicolas Estrella Sr. started selling auto insurance in Miami in the 1970s, he had an opening line: His last name meant “star” in Spanish, so he and other Latino immigrants could bet on the same shooting star—the American dream. “He realized he could fill a void in the marketplace for the greater Hispanic community,” says his son, Nicolas Estrella Jr. Estrella Jr. took over as president of Estrella Insurance in 2006. At the time, the business had 40 corporate stores and three franchises, left over from a previous attempt at franchising in the ’90s. But when Estrella Jr. took a closer look at the franchises’ finances, he was surprised by what he found. “They weren’t doing well,” he says, “but they were doing very decently without any type of support. And the profit margin on that type of business was much greater than the corporate model.” This made him wonder: Should Estrella Insurance try franchising again? Today, the company has no corporate stores, 206 franchises across the nation, and is growing rapidly. It still sells auto insurance, but offers many other policies as well—including for pets, boats, health, home, and more. Here, Estrella Jr. talks about the pivot.

How hard was it to transition to the franchise business model?

It was very difficult. At the time, we had a hair under 400 employees, with salespeople working at the corporate stores and back-office employees who all worked from a central office. [Back-office workers] made up a significant share of employees in the whole organization—but under the franchising model, franchisees become their own units and do their own backoffice work. So unfortunately, I had to lay off a lot of the corporate employees, many of whom had been with us for so long they were like family.

How did you find your first franchisees?

We made the existing managers an offer they couldn’t refuse: We would provide them with the financing to buy the business and convert it into a franchise. We did it over a span of two or two and a half years.

Now that you’ve gone national, do you still mostly market to Hispanic communities?

What we identify is metropolitan areas that have density and diversity. That’s where our business model works best. These aren’t solely Hispanic areas, but there’s been a significant

Are many of the franchise owners Hispanic?

women. We started off with a basket of offices where the managers were women. This was something that, to a certain extent, was by design. My father felt that these women were more approachable. They were going to interact with the community much better than the male persona. But when they saw the success their bosses experienced, they said, “I want my share of that.”

How have things changed from

So they reached out to us, and we gave them the support they when your father started selling insurance?

The evolution of the immigrant community has changed everything. They are business owners now. They have their own grocery stores. They have their own gas stations. They have their own mechanic shops. They have become lawyers. They have become doctors. They have grown, and it has allowed us to grow too.

DIVERSITY DRIVES EDUCATION

Lightbridge Academy is proud to be ranked as one of the Top Franchises for Diversity, Equity, & Inclusion!

We strive to build a diverse, equitable, and inclusive environment for all those in our Circle of Care. 70% of Lightbridge Academy franchisees come from diverse backgrounds. 92.9% of our owners include minority AND women in ownership.

Lightbridge Academy of Bayonne, NJ

Lightbridge Academy of Timonium, MD

Lightbridge Academy of Warren, NJ

Lightbridge Academy of Scarsdale, NY

Gigi Schweikert, CEO

THERE’S A BETTER WAY TO SELL AND GROW FRANCHISES

When franchises grow responsibly, they create incredible opportunities and wealth for franchisees and franchisors. But when they grow irresponsibly, they create problems that hurt us all. Here’s a four-point plan to help everyone in this great industry thrive— and it’s called Responsible Franchising.

by AARON HARPER

Ilove franchising. This industry helps people achieve their dreams of business ownership. It helps founders scale their brands into national or international successes. It can be a pathway to personal satisfaction and financial freedom. To achieve all that, franchises must act responsibly—and the vast majority of them do. There are hundreds (or even thousands!) of brilliant, energetic, innovative, responsible brands.

But at the beginning of my career, I worked for a brand that was none of those things. It tortured me.

This was 2017, and I had taken a job in franchise sales, scaling a decades-old service business by signing up new franchisees. I was taught: If a prospective franchisee has $30,000 in the bank, try to sell them five units. Some of these people were in their 60s or 70s, only made $50,000 to $60,000 a year, and $30,000 was the only capital they had. This seemed odd to me, but I was new and didn’t ask questions. Later, I’d learn that these people rarely succeeded as franchisees. Many of them lost a lot of money. They blamed me, and sometimes cussed me out on the phone. (The company now has new owners, and the bad practices have stopped.)

As my career in franchising progressed, I gained a clearer understanding of what happened. Although most franchise brands are devoted to their customers and franchisees, some are just devoted to numbers— selling as many units as they can, no matter what. I also came to understand why this happens; it often starts with well-intentioned franchisors who don’t do their homework

and get trapped trying to raise cash as fast as possible, and start working with consultants and salespeople who make the problem worse. This bad-acting minority can harm this industry’s reputation, which is tragic.

I knew there had to be a better way, so I went in search of it. I started talking to others in the industry, learning from leaders who do it right. After a few years, I became the franchisor for a 34-year-old residential and commercial power-washing company called Rolling Suds,

where I put these best practices into place myself. Now I can say with confidence: When franchising is done right, it transforms lives for the better. I’ve seen it with my own eyes! That’s why I became so passionate about stopping irresponsible sales techniques, like the ones I was once forced to do.

Along with many like-minded peers, I decided to start talking about these solutions as simply a series of best practices. I want people to think of it as a movement—a movement called

Responsible Franchising. I believe in this industry and the opportunities it presents, and I’m writing this article because of this passion. This text calls upon all stakeholders in the franchising industry to embrace this movement, and to actively and openly champion integrity, resilience, and sustainable growth. Most of you already do. I know that. But even a few bad actors can harm our entire industry’s reputation, which is why we must all speak up. That’s when everyone truly thrives.

The Problem

How did we get here?

When franchising boomed in the 1950s, bad actors and salespeople saw opportunity: They made unfounded promises to new franchisees, ultimately draining people of their savings in exchange for businesses that would never succeed. After many attempts at solving this problem, in 2008, the Federal Trade Commission stepped in with the Franchise Disclosure Document (FDD). Franchisors must legally produce this document, which provides prospective franchisees with the details of a franchise’s history, the fees involved, and the franchisee’s responsibilities. This way, prospective franchisees can see what they’re buying.

The FDD is great in many ways, but it contains a hole: The franchise can misrepresent the level of support it provides franchisees, or wrongly claim that a business can be run without much effort (or in sales lingo, it can be run “absentee” or “semi-absentee”). This is why most experts, including Entrepreneur magazine, always advise that prospective franchisees do their own research—looking at the FDD, yes, but also talking with (and even shadowing) current franchisees, and taking other actions to truly understand how a brand operates. That’s good advice. You’ll find the best brands that way.

Now, here’s a question: Why would a franchisor misrepresent itself like this? Why tell people that a business can be run part time, if it’s not true? The answer is complicated—so to appreciate it, let’s imagine a new franchisor we’ll call Steve. Steve built a local business,

and now wants to franchise it. He doesn’t know much about franchising, so he hires lawyers and consultants to help. Those services are expensive—sometimes upward of $100,000— and do not always fully prepare a franchisor for the costs and challenges ahead. By the time Steve’s franchise is created, he has little money left, and no idea how to find franchisees. Steve needs sales help, so he turns to the two kinds of organizations that help with sales—franchise sales organizations (FSOs) and franchise brokers.

FSOs are like a supercharged, outsourced sales team: They help franchises grow by taking over their sales efforts, selling the brand to prospective franchisees, and managing the sign-up process. Brokers are like career guides for prospective franchisees, helping a franchisee find the right brand for them. To be clear, FSOs and brokers don’t only work with new-

incentives create problems. I’ve seen all sorts of tricks. I saw one FSO promise to help emerging franchises sell more than 100 units in under two years, which is unsustainable for most new brands. I’ve also seen FSOs and brokers misrepresent or downplay the time commitment needed to open a unit, claiming that people can run it as a passive investment. That may be possible for a limited number of brands, but most franchises are full-time work.

Now we’ll return to Steve, our new franchisor. Let’s say he hires an overly aggressive FSO, and they sell his first 50 franchises. That sounds great—but FSOs are costly. Some charge high commissions for their sales; others take equity or a share of royalties. When Steve looks at the numbers, he broke even or lost money on those 50 sales. That means Steve can’t afford to build a team to support his new franchisees—and his

equity has taken a strong interest in franchising and is actively buying or investing in earlystage franchises. Sometimes this works out well—the PE firm provides operational and strategic support, and the brand (and its franchisees) are stronger as a result. But sometimes it falls apart.

The moral of the story is this: Because Steve didn’t do his homework, he got into franchising without understanding its costs. He sold a lot of franchise units, but his business was never healthy—and his franchisees didn’t get the experience they deserved.

This doesn’t just hurt Steve’s franchisees. It hurts all of us. People hear about a friend who bought a franchise and regretted it, and the industry’s reputation and trust is harmed.

According to FRANdata, hundreds of new franchisees offer an FDD every year—and hundreds of them may stop after

WHEN FRANCHISING IS DONE RIGHT, IT TRANSFORMS LIVES FOR THE BETTER. I’VE SEEN IT WITH MY OWN EYES! THAT’S WHY I BECAME SO PASSIONATE ABOUT STOPPING IRRESPONSIBLE SALES TECHNIQUES, LIKE THE ONES I WAS ONCE FORCED TO DO.”

bies like Steve; they also help accelerate growth for established brands. Many of them are honorable, responsible, and truly committed to a franchise’s success. I’ve worked with many of them, and like them both personally and professionally. But some of them act irresponsibly. FSOs and brokers are paid in many ways, and a common way is to be paid for every sale they make—which means the more franchises they sell, the more money they make. You can see how, in the wrong hands, those

franchisees may have been sold a totally wrong idea about how much work their business will take. Steve’s new franchise is on the brink of failure. He needs a way out.

So what happens next? Maybe Steve’s business goes under. Maybe he sells it. Or maybe Steve was never a well-intentioned franchisor to begin with—and in truth, he just wanted to pump up sales to raise his company’s valuation, so he could sell it quickly at a high price. After all, private

just one year. That’s an incredible amount of churn, and it is simply not sustainable.

But we can fix this. Here’s how.

Solutions

If you love franchising the way that I do, then I have good news: Franchising itself isn’t the problem; irresponsible sales and a lack of education are the problems. And those problems are solvable.

I’ve seen it myself. My first franchise sales job was a disaster, but my second job showed

what change can look like.

The year was 2020, and I was leading growth at a different home services company. The company was recently acquired, and I’d been empowered to reshape its processes. I interviewed the current franchisees and discovered how little support they had. My team and I listened to their concerns, then built systems around training, coaching, marketing, and technology, and taught each franchisee how to recruit employees.

Instead of a typical sellerbuyer relationship, I began working with each franchisee in a collaborative and transparent way from the first call to them opening their business. I turned away prospective franchisees who weren’t right for the system, and I was clear about the challenges they could face. The first franchisee who launched with the systems in place was seeing positive cash flow within the first month of operation. Over the next two years, I awarded 223 units to 83 franchisees. But more importantly: They all opened on time and were thriving.

What did I do to succeed? It wasn’t rocket science, and I certainly wasn’t the first or only one to do it. All I’d done was franchised responsibly—in the best interests of the franchisee. To succeed in this industry, both sides must be set up to win. The franchisor’s job is to create the system, and the franchisee’s job is to execute the system. Once I saw how powerful Responsible Franchising could be, I wanted to do it on my own. That’s why, in January 2023, I acquired the franchise rights to Rolling Suds, the power-washing business that I mentioned previously. We’ve now brought on over 40 franchisees and are in the process of opening more than 75

units in 25 states this year.

So what exactly does it mean to franchise responsibly? It starts in the franchise sales process and continues through supporting the franchisee. The sales arm and operations arm of the company must be totally aligned to ensure a positive experience for franchisees.

Here are the four core tenets of Responsible Franchising:

1/ Set clear expectations. I almost never sign on a prospective franchisee if they hope to only work part time. That’s simply not realistic for most business owners.

It’s better to clearly lay out what the franchisee can expect, how many hours they’ll likely devote to the business, and how much money they may spend before it becomes profitable. Franchising is a great model, but it is rarely a passive business, especially for first-time franchisees or emerging brands.

Entrepreneur analyzed five years of data and found that franchisees with lower-cost franchise brands tended to fail more often. When the initial investment was between $15,000 and $25,000, the failure rate nearly doubled—going to 9.3%, compared to an average failure rate of 5% for people whose startup costs were higher than that. And I understand why. Lower-cost franchises can appeal to people on more limited budgets, who underestimate what it will cost to truly run their business.

Now here’s a data point for franchisors: Whatever you think it’ll cost you to start franchising your business, you may want to double that. Many factors can impact the amount of startup capital you’ll need, including the industry you’re entering, the amount of experience you have, the speed at which you want to grow, and endless outside factors from

bank. When he went to training to learn how to use the equipment, he clearly wasn’t the right person to run this business. He didn’t seem engaged and struggled to operate the equipment. He ran the business for less than a month before it went under. He should never have been sold that business.

A franchisor needs to know what type of person will be a successful franchisee, and only work with those kinds of people. At Rolling Suds, our ideal franchisees are business-savvy, outgoing people who are comfortable networking in their community and have a desire to build a big business. They have grit and determination, and they demonstrate behaviors that align with our core values, including living an honest life with integrity and purpose. They are compassionate and helpful to those around them. If someone doesn’t have these skills or values, they’re probably not a right fit. Sales and

IT’S BETTER TO CLEARLY LAY OUT WHAT THE FRANCHISEE CAN EXPECT, HOW MANY HOURS THEY’LL LIKELY DEVOTE TO THE BUSINESS, AND HOW MUCH MONEY THEY MAY SPEND BEFORE IT BECOMES PROFITABLE.”

Many prospective franchisees have never owned a business before, so they don’t know how to hire and manage staff, secure a lease, or negotiate with suppliers. It’s up to the franchisor to train and support them.

2/ Carefully determine capital adequacy. Franchisors and franchisees can both underestimate the amount of capital required to be successful. That’s a mistake.

Here’s a data point about franchisees: Last year,

real estate (if you’re entering a brick-and-mortar business) to the cost of labor (if you need employees). And if you plan to work with an FSO, broker, or other third-party seller, make sure you have even more cash on hand. You’ll need it.

3/ Choose the right franchisees.

At my first franchise sales job, there was a franchisee, a gentleman in his 60s, whom I still think about. I sold him five territories, and he had about $60,000 in the

operations experience is less important, because I can teach those skills—but I can’t teach grit and compassion.

I find most of my franchisees through brokers—because as I said above, most brokers are wonderful and ethical people (even if some of their peers are bad actors). And ultimately, as a franchisor, it is my obligation to only accept franchisees who will succeed with my brand. I’ve turned away more than 50 people over the past year, even though they had enough cap-

ital. That works out to turning down about $10 million in revenue. It was the best money I’ll never make. Those prospective owners weren’t the right fit, and that’s all that matters.

4/ Aim for sustainable growth. While it’s tempting to sell 100 units in a year or two, that’s not a sustainable level of growth for most franchises. It’s important to only open the number of units that can reach profitability. How does a franchisor determine the right pace? It’s all about how much capital is available, as well as the staff and infrastructure available to support the franchisees. If a franchise has one person on staff and only $200,000 in capital, it simply cannot support 100 units. Not even close. I advise any emerging brands to figure out exactly how much it will cost in infrastructure to get one unit open and profitable. They can back into that number based on the available capital, and only sell the number of units they can feasibly open. Some people might look at my numbers of 40 new franchisees in one year at Rolling Suds and say I’m growing too fast. But I have a huge staff working for me, plus years of experience in the franchise industry and fully developed systems in place. I also consider the experience of the franchisee when I decide how many units to sell. I don’t award anyone more units than they can reasonably open.

That’s what Responsible Franchising is: Setting clear expectations, ensuring the right amount of capital for both the franchisee and franchisor, choosing the right franchisees who are prepared for the risks associated with running a business, and

growing at a sustainable pace.

Like I wrote above: I don’t take credit for this strategy, nor do I think it’s exclusively mine. I know that most of my franchising peers also act this way. But as my career progressed, and I saw the power of Responsible Franchising, I became convinced that it is more than just a growth strategy. It must be a philosophy—written down, spoken about often, and with core principles that we can all adhere to, for the good of this industry and everyone who seeks to benefit from it. We must also shine a light on bad actors so we can change the landscape internally.

This is the reason I gave a keynote speech about this at the International Franchise Association Emerging Franchisor Conference, have written about it extensively, visit Capitol Hill every year to discuss this with lawmakers, plan to launch a podcast soon, and am now writing this declaration for

What Happens If We Don’t Act

Recently, lawsuits have reverberated throughout the industry. In one case, multiple franchisees sued a brand that worked with an FSO to sell them their units. In their claims, the franchisees say they were told their business could be profitable with minimal effort—taking far fewer hours and making much more money than was possible.

The government is clearly watching the franchise industry. Last year, the National Labor Relations Board changed a rule called “joint employer” that could have made franchisors jointly responsible for a franchisee’s employees. It was struck down in court, but the effort shows you what regulators are thinking. And last year, the U.S. Government Accountability Office issued a report recommending changes to franchise disclosure practices—pushing for

course before they can begin franchising, to ensure that they know exactly what they are getting themselves into? I think the answer to all of these is yes, but I want the industry to discuss!

This issue is resonating across the industry. When I give talks about Responsible Franchising, people approach me afterward to thank me. Employees who work at irresponsible franchise companies are reaching out to me, seeking work with a franchisor that operates responsibly. They tell me they can’t sleep at night with some of the things they are seeing. Franchisors and industry leaders are rallying behind this. Matt Haller, the president and CEO of the IFA, now speaks about it regularly.

I’ve said it before, and I’ll say it forever: When done responsibly, franchising is truly a great business model—and there’s plenty of money to be made without any misleading sales tactics or unsustainable growth. I

WHILE IT’S TEMPTING TO SELL 100 UNITS IN A YEAR OR TWO, THAT’S NOT A SUSTAINABLE LEVEL OF GROWTH FOR MOST FRANCHISES. IT’S IMPORTANT TO ONLY OPEN THE NUMBER OF UNITS THAT CAN REACH PROFITABILITY.”

you to read. I want to accelerate this movement of Responsible Franchising. Joining the movement is simple: If you are in franchising, and if you franchise responsibly, then you’re in!

Now it’s time to help others act responsibly too. If we are to succeed as an industry, and to fulfill our true mission of creating economic opportunity for those who believe in us, then we must franchise responsibly.

If we do not, the consequences can be larger than anyone thinks.

more education and outreach.

The threat of lawsuits and regulation will hopefully motivate change, but the franchising industry can also do more to hold itself accountable. For example, the IFA endorsed a bill in California to increase regulation of FSOs and brokers, as well as provide more disclosure to prospective franchisees. Next, let’s ask: Should there be state-mandated licensing for FSOs, brokers, and other third-party sales advisors? Should emerging franchisors have to complete a standardized licensing

don’t think there’s a quicker way for a person to generate wealth than to find the right brand and execute it. Investing $150,000 in the stock market will almost never generate the same return as investing $150,000 into a successful and responsible brand. It’s a win-win. And if we prioritize the success of franchisees, that’s how it will stay.

Aaron Harper is the CEO of Rolling Suds. Freelance reporter Blaire Briody contributed to this report.

Opportunities Abound

If becoming an entrepreneur with the support of an established business network sounds enticing, a franchise may be the right choice for you. Take a look at these opportunities to get started.

A Business That Is Always In Demand

Sparked by the challenges of 2020/21, forward thinking, planning, preparation and seeking out supply chain workarounds meant that Batteries Plus entered a period of accelerated growth. Investors noticed what we knew all along: Diversifying your franchise portfolio just makes sense. Known for being stable with essential products and services available to both businesses and retail customers, Batteries Plus recorded their largest sales year in the history of the company in 2021.

Batteries Plus is an essential business, and essential businesses are the future of franchising. By providing products and services that consumers and businesses need, you’re better able to weather economic downturns and global instability. By offering batteries for everything from vehicles to thermometers, as well as cell phone repair and key fob replacements, a Batteries Plus franchise can tolerate economic shifts and grow as a result of them.

Since 2020, Batteries Plus has had 222 signings, and 126 new locations to our system’s network of 720+ specialty retail stores. The agreements represent a healthy mix of single and multi-unit growth across the country.

Batteries Plus franchise owners have been inspired by our brand’s performance over the past two years, as we experienced double-digit commercial sales growth. This remarkable growth occurred because of the way commercial customers rely on Batteries Plus for our power, device repair services, and more. Owners were also able to take

About Batteries Plus

Batteries Plus is a stable, 35+ year-old, predictable business model that offers needs based products and access to reliable lending partners. We also offer proprietary systems, a multi-layered support system, low staff count, brand recognition, and ability to sell to businesses before store opening.

Batteries Plus Facts

B2B, National Accounts, Retail & eCommerce Revenue Streams

$10,000 off for Veterans, First Responders, & BIOPIC groups

advantage of our program that allows them to make commercial sales even before their new store officially opens!

We continue to experience recognition, both from the franchising world and our business customers. In addition to receiving an award from our National Account partner, Johnson Controls, we continue to climb the Entrepreneur’s Franchise 500 rankings and appear on their Hall of Fame and Multi-Unit lists. In addition, this year Batteries Plus earned the Franchise Customer Experience Certification, administered by the Franchise Customer Experience Institute.

Rolling Suds Named to Entrepreneur’s 2024 Top New and Emerging Franchises

Rolling Suds, on track to being the largest power washing franchise in the world in 2024, presents an exceptional franchise opportunity tailored for ambitious individuals aspiring to establish a lasting legacy and accumulate generational wealth. Emphasizing responsible franchising, Rolling Suds is dedicated to ensuring a positive franchisee experience and offers unparalleled support throughout the franchise journey.

Having sold more than 140 locations in 13 months, Rolling Suds has a proven track record of franchisee success, capitalizing on the fragmented nature of the mobile power washing industry. In an industry lacking a dominant national leader, Rolling Suds introduces a disruptive element, poised to establish new standards of excellence.

About Rolling Suds

Anchored by decades of carefully refining our business model and power washing techniques, Rolling Suds is proud to be one of the fastest-growing franchises in the United States, soon to be the largest in the world.

Rolling Suds Facts

Startup Costs : $149,915$206,140 for 2 territories

Niche Benefits : We’re the best at power washing and we do it 2-3x faster than the competition

“I wish we had found out about this sooner... I just now, for the first time, have found out what I want to do for the rest of my life.”

—Jud McGehee, very first Rolling Suds franchisee, located in Austin, TX

Utilizing a commercial lead center, Rolling Suds supplies franchisees with an internal centralized resource for exceptional leads. Its proprietary technology and process, the Professional Wash Method, also sets Rolling Suds apart as it allows franchisees to be faster and more efficient. This wash method boasts a cleaning process 2-3 times faster than competitors, coupled with an impressive 96% customer satisfaction rate.

Franchisees benefit from a business model with low start-up costs and overheads, offering a lucrative opportunity for budding entrepreneurs. While adhering to a proven system, Rolling Suds encourages franchisees to contribute suggestions aligned with the company’s values, fostering a collaborative environment.

To learn more about Rolling Suds, visit rollingsudsfranchise.com

Top Franchises for Diversity, Equity&Inclusıon

These 100 companies offer programs, incentives, and other initiatives to help expand opportunities for all.

by TRACY STAPP HEROLD

Afranchise is most successful when it reaches a wide variety of communities—and to do that best, it needs to bring a diversity of voices and experiences into its franchisee and corporate-level ranks. That’s why, for the third year, we’ve chosen the 100 franchises that we think are doing the most to expand opportunities for all.

Typically, our franchise lists are created by gathering and crunching a lot of data, and then ranking brands based on the results. Diversity, equity, and inclusion (DEI) efforts can be difficult to quantify, so we’ve chosen the companies on this list editorially, and they’re listed alphabetically instead of ranked. To determine which brands to include, we considered a number of factors, including: any incentives offered to franchisees from underrepresented groups; diversity among franchisees; diversity within the leadership team; and other company initiatives or programs related to DEI. We also asked leaders from each company why their brand values DEI and what specific ways they have found to promote and support it. You’ll find a sampling of their answers on the following pages.

If DEI is important to you, this list can be a great starting point for finding a franchise company that aligns with your mindset. But keep in mind that the list is not intended as a recommendation of any particular company, and it’s important to do your own homework before investing in any franchise opportunity. That means reading the company’s legal documents, consulting with an attorney and an accountant, and talking to current and former franchisees about their experiences.

List compiled with assistance from Jordan Hall.

Abrakadoodle

Art-education programs for children

FRANCHISE FEE

$25.4K-$56.9K

STARTUP COST

$38.7K-$82.6K

TOTAL UNITS (Franchised / Co.-Owned)

481/2

AeroWest

Odor control, restroom care, hygiene, scent marketing

FRANCHISE FEE

$25K STARTUP COST

$35.2K-$91.3K

TOTAL UNITS

(Franchised / Co.-Owned)

25/11

INCENTIVE

25% off franchise fee for BIPOC, women, and LGBTQ+ franchisees

Allegra Marketing Print Mail

Printing, marketing, direct mail, signs, promotional products

FRANCHISE FEE

$45K STARTUP COST

$129.5K-$456.8K

TOTAL UNITS

(Franchised / Co.-Owned)

237/2

INCENTIVE

25% off franchise fee for BIPOC, women, and LGBTQ+ franchisees

All Med Search

Healthcare industry recruiting and placement services

FRANCHISE FEE

$50K STARTUP COST

$67.1K-$83.2K

TOTAL UNITS

(Franchised / Co.-Owned) 13/1

INCENTIVE

15% off franchise fee for franchisees who identify as BIPOC, women, and/or LGBTQIA+

AlphaGraphics

Printing, marketing communications, signs and graphics

FRANCHISE FEE

$48.95K STARTUP COST

$285.3K-$368.6K

TOTAL UNITS

(Franchised / Co.-Owned) 259/0

INCENTIVE

$5,000 off franchise fee for BIPOC and women franchisees

Altitude Trampoline Park

Family entertainment centers

FRANCHISE FEE

$45K

STARTUP COST

$1.6M-$2.8M

TOTAL UNITS (Franchised / Co.-Owned) 70/9

Anago Cleaning Systems

Commercial cleaning

FRANCHISE FEE

$5K-$31K

STARTUP COST

$11.3K-$68.3K

TOTAL UNITS (Franchised / Co.-Owned) 1,835/0

Apricot Lane Boutique

Women’s clothing, accessories, gifts

FRANCHISE FEE

$39.5K

STARTUP COST

$146K-$341.3K

TOTAL UNITS

(Franchised / Co.-Owned) 114/0

ASP-America’s Swimming Pool Company

Swimming pool maintenance, repairs, and renovations

FRANCHISE FEE

$40K-$90K

STARTUP COST

$84.4K-$207.4K

TOTAL UNITS

(Franchised / Co.-Owned) 379/0

INCENTIVE

$5,000 off franchise fee for minority, women, and LGBTQ+ franchisees

Assisted Living Locators

Senior-living placement and referral services

FRANCHISE FEE

$49.9K

STARTUP COST

$74.2K-$94.5K

TOTAL UNITS

(Franchised / Co.-Owned) 141/3

INCENTIVE

5% off first-unit franchise fee for BIPOC franchisees

WE ASKED/

Why is diversity, equity, and inclusion important to your company?

THREE ANSWERS/

“Our franchisees serve diverse consumers and communities, spanning various demographics, cultures, and backgrounds. By promoting diversity within our support team and franchise community, we ensure that we can effectively connect with our guests.”

—Jessica McDonald, senior director of brand marketing, Altitude Trampoline Park

—Jessica McDonald, senior director of brand Altitude Park

“Diversity, equity, and inclusion are integral to the foundation of a thriving, innovative franchise com munity. We believe that embracing different perspectives enhances our business culture, nurtures creativity, and ensures everyone has a seat at the table, making a positive impact on our community.”

—Tina Bacon-DeFrece, CEO, Big Frog Custom T-Shirts & More

“Our founders, leaders, and the majority of our franchisees are people of color and women. We understand firsthand the significance of seeing individuals who resemble us in positions of leadership and influence. This representation not only reflects the diverse communities we serve, but also ensures our products and services cater to a broad range of needs.”

—Vishal

—Vishal Bhasin, cofounder, Wize Computing Academy

$57.7K-$74K

10%

$49.5K

$18K-$39.5K

$155.9K-$549.3K

Top Franchises for

The Camp Transformation Center

Fitness/weight-loss services

FRANCHISE FEE

$49.5K STARTUP COST

$351.4K-$474.4K

TOTAL UNITS (Franchised / Co.-Owned) 103/3

Caring Senior Service

Nonmedical home care

FRANCHISE FEE

$49K STARTUP COST

$116.9K-$176.1K

TOTAL UNITS

(Franchised / Co.-Owned) 50/5

INCENTIVE 20% off first-unit franchise fee for BIPOC, women, and/ or LGBTQ+ franchisees

Caring Transitions

Senior transition and relocation, online auctions, and estate liquidation management

FRANCHISE FEE

$44.9K

STARTUP COST

$58.9K-$84.6K

TOTAL UNITS

(Franchised / Co.-Owned) 278/0

Central Bark

Dog daycare, boarding, grooming, training, and retail

FRANCHISE FEE

$49K

STARTUP COST

$552.8K-$934.2K

TOTAL UNITS

(Franchised / Co.-Owned) 35/0

FRANCHISE FEE

$39.5K

$195.9K-$291.4K TOTAL UNITS

(Franchised / Co.-Owned) 75/0 INCENTIVE 10% off franchise fee for first standard franchise for women and ethnic minorities Building Kidz

Challenge Island Educational enrichment programs

FRANCHISE FEE

$44.9K

STARTUP COST

$53.4K-$68.9K

TOTAL UNITS

(Franchised / Co.-Owned) 216/7

Chef It Up!/Chef It Up 2 Go!

Allergy-friendly cooking parties, classes, and events

FRANCHISE FEE

$18K-$27K

STARTUP COST

$30.1K-$73.4K

TOTAL UNITS

(Franchised / Co.-Owned) 14/4

/ Co.-Owned) 38/5

INCENTIVE 5% off franchise fee for minority and women franchisees

WE ASKED/

How has your company promoted DEI at the corporate or franchise level?

THREE ANSWERS/

“In 2023, we placed an emphasis on accessibility as our DEI focus. This initiative encompasses projects such as improved signage, autistic certification, email accessibility, recruitment efforts, internships, campground design, and technology partnerships, all aimed at enhancing the camping experience for individuals with diverse needs.”

—Whitney

Scott, senior vice president of strategy, Kampgrounds of America (KOA)

—Whitney Scott, senior vice president of strategy, of America

“We tell our community that ‘ballet is for everybody.’ Our Ballet Storytime curriculum and our monthly Ballet Book Club both feature visual representations of characters that are diverse in race, gender, and body type. We want our students to see that ballet is more beautiful when differences are included and honored in the studio and on the stage.”

—Genevieve Custer Weeks, founder and CEO, Tutu School

“Our values statement has always included: ‘We embrace diversity in our community.’ We share that with our franchisees, their teams, and retail customers. Just one example of putting it into action is our support of the Black AF in STEM Black Birders Week as one of our strategic partner support programs.”

—Paul Pickett, chief development officer and executive vice president of franchising, Wild Birds Unlimited

Paul Pickett, chief development officer and executive vice of Birds Unlimited

Chefs For Seniors

In-home meal preparation service for seniors FRANCHISE FEE

$8K-$13K

COST

$12.6K-$29.4K TOTAL UNITS

(Franchised / Co.-Owned) 83/1

The Cleaning Authority Residential and commercial cleaning FRANCHISE FEE

$15K-$20K

$79.1K-$175.3K TOTAL

/ Co.-Owned) 222/3

$5,000

Denny’s

Full-service restaurants

FRANCHISE FEE

$30K STARTUP COST

$1M-$2.3M

TOTAL UNITS (Franchised / Co.-Owned) 1,522/66

DivaDance

Dance classes and parties for adults

FRANCHISE FEE

$18K-$32K

STARTUP COST

$32.4K-$69.4K

TOTAL UNITS (Franchised / Co.-Owned) 26/4

DonutNV

Mini doughnuts, juices, hot and iced coffee

FRANCHISE FEE

$59.5K

STARTUP COST

$185.1K-$253.5K

TOTAL UNITS

(Franchised / Co.-Owned) 117/1

DoodyCalls

$49.5K

$106.5K-$166.8K TOTAL UNITS (Franchised / Co.-Owned) 59/3 INCENTIVE

$5,000 off first-unit franchise fee for minorityowned, women-owned, and LGBTQ+-owned franchises

Corvus Janitorial

$8.5K-$18.5K

$9.6K-$34.5K

UNITS (Franchised / Co.-Owned) 1,959/0 Crestcom

$75K

$91.9K-$104.9K

UNITS (Franchised / Co.-Owned) 164/0

Deka Lash

Eyelash extensions, brow services, skincare solutions

FRANCHISE FEE

$59.9K STARTUP COST

$222.8K-$476.9K

TOTAL UNITS

(Franchised / Co.-Owned) 129/1

→ DREAM VACATIONS

Pet waste management

FRANCHISE FEE

$49K

STARTUP COST

$64K-$83.5K

TOTAL UNITS

(Franchised / Co.-Owned) 77/2

INCENTIVE

$5,000 off franchise fee for minority and women franchisees

Dream Vacations

Travel agencies

FRANCHISE FEE

$495-$10.5K

STARTUP COST

$1.8K-$21K

TOTAL UNITS (Franchised / Co.-Owned) 1,874/0

Executive Image Building Services

Commercial cleaning and building maintenance

FRANCHISE FEE

$35K

STARTUP COST

$39.1K-$83K

TOTAL UNITS

(Franchised / Co.-Owned) 51/1

INCENTIVE

80% financing of franchise fee for BIPOC, women, and LGBTQ+ franchisees

FastSigns

Signs, graphics

FRANCHISE FEE

$49.8K

STARTUP COST

$240.1K-$310.6K

TOTAL UNITS

(Franchised / Co.-Owned) 768/0

Fit4Mom

Prenatal and postnatal fitness and wellness programs for mothers

FRANCHISE FEE

$7.5K-$13.4K

STARTUP COST

$8.2K-$28.7K

TOTAL UNITS

(Franchised / Co.-Owned) 226/1

Fresh Coat Painters

Residential and commercial painting

FRANCHISE FEE

$49.9K

STARTUP COST

$66.2K-$96.3K

TOTAL UNITS

(Franchised / Co.-Owned) 172/0

Frios Gourmet Pops

Frozen pops

FRANCHISE FEE

$20.5K

STARTUP COST

$40.9K-$71.8K

TOTAL UNITS

(Franchised / Co.-Owned) 86/0

Fun 4 US Kids

Family calendar/directory websites for local communities

FRANCHISE FEE

$3K-$25K

STARTUP COST

$10.7K-$47.8K

TOTAL UNITS

(Franchised / Co.-Owned) 15/6

G-Force Parking Lot Striping

Pavement marking services

FRANCHISE FEE

$7.5K-$37.5K

STARTUP COST

$34.8K-$120.5K

TOTAL UNITS

(Franchised / Co.-Owned) 44/0

Grasons Estate Sales & Business Liquidations

Estate sales, business liquidations, online auctions

FRANCHISE FEE

$49.9K

STARTUP COST

$58.8K-$109K

TOTAL UNITS

(Franchised / Co.-Owned) 35/0

INCENTIVE

5% off first-unit franchise fee for franchisees who identify as Black, Asian, Hispanic, Native American, or any other racial or ethnic minority group

GW Gyro & Wings

Gyros, wraps, wings, cheesesteaks

FRANCHISE FEE

$29.9K

STARTUP COST

$265.6K-$559.6K

TOTAL UNITS

(Franchised / Co.-Owned) 37/0

Heating + Air Paramedics

Residential heating, air conditioning, and air quality services

FRANCHISE FEE

$40K

STARTUP COST

$130.1K-$237.4K

TOTAL UNITS

(Franchised / Co.-Owned) 5/1

INCENTIVE 10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

Home Instead

Nonmedical senior care

FRANCHISE FEE

$54K

STARTUP COST

$98K-$125K

TOTAL UNITS

(Franchised / Co.-Owned) 1,213/4

Homewatch CareGivers

Home care services

FRANCHISE FEE

$50K

STARTUP COST

$92.3K-$154K

TOTAL UNITS

(Franchised / Co.-Owned) 222/0

INCENTIVE

$5,000 off franchise fee for minority, women, and LGBTQ+ franchisees

i4 Search Group Healthcare recruiting

FRANCHISE FEE

$50K-$80K

STARTUP COST

$66.8K-$113.6K

TOTAL UNITS (Franchised / Co.-Owned) 30/0

Image360

Signs, graphics, displays, digital imaging, visual communications

FRANCHISE FEE

$40K-$45K

STARTUP COST

$132.1K-$522.1K

TOTAL UNITS

(Franchised / Co.-Owned) 281/2

INCENTIVE

25% off franchise fee for franchisees who identify as women, BIPOC, and LGBTQ+

ISI Elite Training Group fitness

FRANCHISE FEE $60K

STARTUP COST

$327.4K-$687K

TOTAL UNITS (Franchised / Co.-Owned) 32/2

JPAR Real Estate

Real estate

FRANCHISE FEE

$25K-$30K

STARTUP COST

$36.7K-$237.9K

TOTAL UNITS

(Franchised / Co.-Owned)

42/26

INCENTIVE

5% of franchise fee

donated to NAR-affiliated nonprofit on behalf of women, BIPOC, and LGBTQ+ franchisees

Junk Chuckers

Junk removal

FRANCHISE FEE

$30K

STARTUP COST

$39.4K-$72.8K

TOTAL UNITS

(Franchised / Co.-Owned)

40/2

INCENTIVE

15% off franchise fee and $5,000 royalty fee credit for women, persons with disabilities, and other underrepresented groups

The Junkluggers

Top Franchises for Diversity, Equity & Inclusion

Environmentally friendly residential and commercial junk removal

FRANCHISE FEE

$50K

STARTUP COST

$98.1K-$359.3K

TOTAL UNITS

(Franchised / Co.-Owned) 124/4

INCENTIVE

$5,000 off franchise fee for minority and women franchisees

Kampgrounds of America (KOA)

Campgrounds and RV Parks

FRANCHISE FEE

$11.3K-$35K

STARTUP COST

$106.3K-$15.2M

TOTAL UNITS

(Franchised / Co.-Owned) 456/51

Keyrenter Property Management

Residential property management

FRANCHISE FEE

$40K

STARTUP COST

$104.6K-$220.3K

TOTAL UNITS

(Franchised / Co.-Owned) 43/1

Lawn Doctor Lawn, tree, and shrub care; mosquito and tick control

FRANCHISE FEE

$40K

STARTUP COST

$117.7K-$143.2K

TOTAL UNITS

(Franchised / Co.-Owned)

635/0

INCENTIVE

$10,000 off franchise fee for BIPOC franchisees

Lennys Grill & Subs

Deli subs, Philly cheesesteaks, catering

FRANCHISE FEE

$20K-$25K

STARTUP COST

$339.8K-$508.5K

TOTAL UNITS

(Franchised / Co.-Owned)

59/4

INCENTIVE

$5,000 off franchise fee for BIPOC, women, and/or LGBTQ+ franchisees

Level Up Automation

Design and installation of commercial and residential technology modifications and integrations

FRANCHISE FEE

$35K

STARTUP COST

$51.8K-$68.2K

TOTAL UNITS

(Franchised / Co.-Owned) 8/1

INCENTIVE

10% off franchise fee for BIPOC, women, and LGBTQ+ franchisees

Lightbridge Academy

Early education and childcare

FRANCHISE FEE

$40K

STARTUP COST

$621.2K-$5.2M

TOTAL UNITS

(Franchised / Co.-Owned) 52/17

Little Kitchen Academy

Children’s cooking classes

FRANCHISE FEE

$65K

STARTUP COST

$394.5K-$655.1K

TOTAL UNITS

(Franchised / Co.-Owned) 12/2

MaidPro

Residential cleaning

FRANCHISE FEE

$45K

STARTUP COST

$105.6-$130.8K

TOTAL UNITS

(Franchised / Co.-Owned) 267/0

INCENTIVE 10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

MassageLuXe

Therapeutic massage, facials, waxing

FRANCHISE FEE

$42.5K

STARTUP COST

$414.7K-$768K

TOTAL UNITS

(Franchised / Co.-Owned)

79/0

Men In Kilts

Window and exterior cleaning

FRANCHISE FEE

$38K

STARTUP COST

$127.5K-$222.95K

TOTAL UNITS

(Franchised / Co.-Owned)

42/0

INCENTIVE 10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

Mobility City

Mobility equipment repairs, rentals, and sales

FRANCHISE FEE

$47.5K-$150K

STARTUP COST

$197.4K-$460K

TOTAL UNITS

(Franchised / Co.-Owned)

36/1

INCENTIVE

10% off franchise fee for women and BIPOC franchisees

Monster Tree Service

Residential and commercial tree and plant care services

FRANCHISE FEE

$49.5K

STARTUP COST

$399K-$535.6K

TOTAL UNITS

(Franchised / Co.-Owned)

231/1

INCENTIVE

$5,000 off franchise fee for minority and women franchisees

Mosquito

Hunters

Mosquito, tick, and flea control

FRANCHISE FEE

$40K

STARTUP COST

$99.8K-$116.8K

TOTAL UNITS

(Franchised / Co.-Owned)

133/6

INCENTIVE

$10,000 off franchise fee for BIPOC franchisees

Mosquito Squad

Outdoor pest control

FRANCHISE FEE

$27.5K-$50K

STARTUP COST

$164.5K-$217.1K

TOTAL UNITS

(Franchised / Co.-Owned) 224/15

INCENTIVE

$5,000 off franchise fee for minority and women franchisees

Neighborhood Barre

Barre fitness classes, apparel, merchandise

FRANCHISE FEE

$35K

STARTUP COST

$78.5K-$248.5K

TOTAL UNITS

(Franchised / Co.-Owned) 22/3

1Heart Caregiver

Services

Nonmedical senior care

FRANCHISE FEE

$47.5K

STARTUP COST

$91.3K-$133.4K

TOTAL UNITS

(Franchised / Co.-Owned) 18/3

Patrice & Associates

Hospitality, executive search, retail, and sales recruiting

FRANCHISE FEE

$65K

STARTUP COST

$90.1K-$92.8K

TOTAL UNITS

(Franchised / Co.-Owned) 199/0

Pedal Pub Party bike tours

FRANCHISE FEE

$39.9K

STARTUP COST

$117.5K-$270.4K

TOTAL UNITS

(Franchised / Co.-Owned) 20/1

Pestmaster

Pest and rodent control, wildlife exclusion, vegetation management

FRANCHISE FEE

$42.5K

STARTUP COST

$84.6K-$188.8K

TOTAL UNITS

(Franchised / Co.-Owned) 41/6

INCENTIVE

10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

Pet Wants

Natural pet-food stores/ delivery

FRANCHISE FEE

$42.5K

STARTUP COST

$131.4K-$202.5K

TOTAL UNITS

(Franchised / Co.-Owned) 132/1

Port of Subs

Subs, wraps, salads, desserts, breakfast, catering

FRANCHISE FEE

$25K

STARTUP COST

$310.5K-$528.2K

TOTAL UNITS

(Franchised / Co.-Owned) 116/14

PostNet

Packing, shipping, printing, signs, marketing solutions

FRANCHISE FEE

$36.8K

STARTUP COST

$209.3K-$261.3K

TOTAL UNITS

(Franchised / Co.-Owned)

730/0

INCENTIVE

10% off franchise fee for BIPOC and women franchisees

PuroClean

Property damage

restoration and remediation

FRANCHISE FEE

$59K

STARTUP COST

$95.5K-$245.9K

TOTAL UNITS (Franchised / Co.-Owned) 436/0

Rent-A-Center

Rent-to-own furniture, electronics, tires, computers, appliances

FRANCHISE FEE

$35K

STARTUP COST

$367.1K-$693.6K

TOTAL UNITS (Franchised / Co.-Owned) 384/1,923

Richard’s Painting Painting

FRANCHISE FEE

$39.95K

STARTUP COST

$60.2K-$106.5K

TOTAL UNITS (Franchised / Co.-Owned) 18/2

INCENTIVE 15% off franchise fee for BIPOC, women, and/or LGBTQ+ franchisees

Robeks Fresh Juices & Smoothies

Juices, smoothies, bowls

FRANCHISE FEE $30K

STARTUP COST

$320.4K-$484.4K

TOTAL UNITS (Franchised / Co.-Owned) 97/2

RockBox Fitness Boxing, kickboxing, and functional strength training fitness studios

FRANCHISE FEE

$59.9K

STARTUP COST

$374.6K-$491.3K

TOTAL UNITS (Franchised / Co.-Owned) 57/0

Send Me a Pro In-home services

FRANCHISE FEE

$34.99K

STARTUP COST

$49.1K-$84.8K

TOTAL UNITS

(Franchised / Co.-Owned)

84/0

Senior Care Authority

Senior-care consulting and placement

FRANCHISE FEE

$52.5K

STARTUP COST

$73.1K-$99K

TOTAL UNITS

(Franchised / Co.-Owned)

84/4

Senior Helpers

Personal, companion, Parkinson’s, and Alzheimer’s home care

FRANCHISE FEE

$55K

STARTUP COST

$127.8K-$171.8K

TOTAL UNITS

(Franchised / Co.-Owned)

356/5

INCENTIVE

10% off franchise fee for BIPOC franchisees

Servpro

Fire, water, and other damage cleanup, restoration, and reconstruction

FRANCHISE FEE

$90K

STARTUP COST

$236.3K-$296.8K

TOTAL UNITS

(Franchised / Co.-Owned) 2,199/0

Sir Grout

Residential hard surface restoration and maintenance

FRANCHISE FEE

$60K

STARTUP COST

$121.8K-$182.7K

TOTAL UNITS (Franchised / Co.-Owned) 57/0

INCENTIVE 10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

Top Franchises for Diversity, Equity & Inclusion

Skyhawks & SuperTots Sports

Academy

Children’s fitness programs

FRANCHISE FEE

$15K-$42.5K

STARTUP COST

$30.3K-$89.8K

TOTAL UNITS

(Franchised / Co.-Owned) 177/70

SnapHouss

Real estate photography, videography, 3D virtual tours, aerial/drone photos/ videos

FRANCHISE FEE

$9.9K-$29.7K

STARTUP COST

$31.2K-$60.2K

TOTAL UNITS

(Franchised / Co.-Owned) 33/1

INCENTIVE

Up to 60% off equipment fees and up to 100% off initial marketing fee for franchisees who identify as BIPOC, women, and/or LGBTQIA+

Spherion Staffing & Recruiting

Flexible staffing, recruiting, workforce management solutions

FRANCHISE FEE

$40K

STARTUP COST

$214.3K-$471.98K

TOTAL UNITS

(Franchised / Co.-Owned) 214/0

INCENTIVE

25% off franchise fee for SBA-recognized disadvantaged/minority groups

StretchMed

Assisted stretching

FRANCHISE FEE

$40K

STARTUP COST

$70.4K-$185.5K

TOTAL UNITS

(Franchised / Co.-Owned) 25/1

INCENTIVE

10% off franchise fee for BIPOC and LGBTQ+ franchisees

Tierra Encantada

Spanish immersion early education

FRANCHISE FEE

$60K

STARTUP COST

$1.5M-$2.9M

TOTAL UNITS

(Franchised / Co.-Owned) 2/9

INCENTIVE

$5,000 toward opening training or marketing for BIPOC, women, and LGBTQ+ franchisees

Tutu School

Children’s ballet schools

FRANCHISE FEE

$42K

STARTUP COST

$89.1K-$158.3K

TOTAL UNITS (Franchised / Co.-Owned)

66/3

Unishippers

Parcel and freight shipping services

FRANCHISE FEE

$30K

STARTUP COST

$34.6K-$233.3K

TOTAL UNITS

(Franchised / Co.-Owned) 237/74

INCENTIVE

50% off franchise fee for women and minority franchisees

United Country Real Estate Real estate

FRANCHISE FEE

$10K-$20K

STARTUP COST

$10.5K-$44.9K

TOTAL UNITS (Franchised / Co.-Owned)

422/1

The UPS Store

Shipping, packing, mailboxes, printing, faxing, shredding, notary services

FRANCHISE FEE

$9.95K-$29.95K

STARTUP COST

$101.8K-$476.99K

TOTAL UNITS

(Franchised / Co.-Owned)

5,568/2

INCENTIVE

50% off $29,950 franchise fee for first-time Black, Asian, Hispanic, Native American, and LGBTQ+ franchisees purchasing a new store

USA Insulation

Home insulation and energy-efficient products

FRANCHISE FEE

$55K

$269.5K-$398K

TOTAL UNITS

(Franchised / Co.-Owned) 113/1

INCENTIVE

10% off franchise fee for franchisees who are women, ethnic minorities, physically challenged, or LGBTQ+

VetCor

Emergency restoration services

FRANCHISE FEE

$60K

STARTUP COST

$173.9K-$358.3K

TOTAL UNITS

(Franchised / Co.-Owned) 23/1

Wendy’s

Burgers, chicken sandwiches, breakfast sandwiches, sides

FRANCHISE FEE

$50K STARTUP COST

$320.5K-$4.6M TOTAL UNITS (Franchised / Co.-Owned) 6,724/403

Wild Birds Unlimited Bird-feeding supplies and nature gift items

FRANCHISE FEE

$40K

$209.4K-$350K

Wize

Computing Academy

Coding, robotics, and design classes, camps, and competition prep

FRANCHISE FEE

$32.5K STARTUP COST

$40K-$70K

TOTAL UNITS

(Franchised / Co.-Owned) 19/2

Woofie’s

Pet sitting, dog walking, mobile pet grooming

FRANCHISE FEE

$52.5K STARTUP COST

$129.1K-$246.4K

TOTAL UNITS (Franchised / Co.-Owned) 23/2

INCENTIVE

$5,000 off first-unit franchise fee for minorityowned, women-owned, and LGBTQ+-owned franchises

Young Chefs

Academy

Cooking schools for children and adults

FRANCHISE FEE

$45K STARTUP COST

$150.4K-$199.9K

TOTAL UNITS (Franchised / Co.-Owned) 28/1

Zoom Room

Indoor dog training and socialization, pet products

FRANCHISE FEE

$49.5K STARTUP COST

$317.6K-$489.5K

TOTAL UNITS (Franchised / Co.-Owned) 54/1

$182.5K-$443.5K

TOTAL UNITS (Franchised / Co.-Owned) 501/0

INCENTIVE

50% off franchise fee/ transfer fee for BIPOC, women, and LGBTQ+ franchisees

What Resiliency Really Is

by Mita Mallick, head of DEI, Carta

When I began my career in marketing, a mentor told me this: Resilience is key. I nodded at the time, thinking I understood what he meant—that nothing is easy, that the strongwilled survive, and so on. I struggled with confidence during my early career, but over time I grew bolder, well-respected, and accomplished. Wasn’t this resiliency?

I thought I’d learned my mentor’s lesson.

But I did not understand resilience at all. That became clear in 2017, when my father unexpectedly died. He was a stable, inspiring force in my life—and with him gone, I felt in free fall. I started isolating myself. I lost focus at work. My decades of experience and confidence slipped away. Months after his death, I discovered one of his handkerchiefs in his study. For as long as I could remember, he kept one of these tucked in his pocket. It was his version of a small luxury—like a consistent gift to himself, despite what the world gave or took from him. He was an Indian immigrant engineer who left his family behind in Kolkata to start a life in the U.S. He didn’t have a community of support to fall back on. He struggled to fit into corporate America. But despite all that, he became an executive of a Fortune 500 company.

As I grieved, I carried his handkerchief wherever I went. It reminded me to do as I’d watched him do—to establish routines at work, to focus my attention, to practice self-care. I started taking long walks and made sure to eat lunch every day. I built new connections with colleagues, took on new projects, began co-leading our women’s employee resource group, and helped my employer rethink its bereavement policies. In short, I established my own purpose, no matter what challenges surrounded me. Just like my father.

In time, I came to reflect upon my mentor’s old words: Resilience is key. Now I understood. Resilience is not something you can borrow, emulate, or study in a management book. It is not something you can just have, as I once thought. It is something you build—an iterative process that’s unique to each of us, as we adapt to life’s challenges and choose to move forward again. On the other side of that process, you truly find yourself.

→ MEMORIES KEPT

The author’s father, Satya Priya Mallick, and the handkerchief he used to carry.

WHAT INSPIRES YOU?

Tell us about a story, person, object, or something else that pushes you forward, and we may include it in a future issue. And we may make you photograph it, too. Email INSPIRE@ENTREPRENEUR.COM with the subject line “WHAT INSPIRES ME.”