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Fishman PR. The largest and most trusted PR and content marketing firm in franchising, driving franchise leads and franchisee growth for over 25 years. www.fishmanpr.com | [email protected] fishmanPR f you're a brand on a roll, and want to expand I overseas, you will have a long list of CONTENts information you need to find, and preparations you need to make. We won't go into these FRANCHISE 44 WHAT WILL SELL here as you'll find regular OPPORTUNITIES YOUR FRANCHISE? articles in this magazine that Single-service concepts are purposed solely to make 46 HOW WILL YOU FUND your expansion into new markets as pain-free as possible. 14 CARL'S JR YOUR EXPANSION? But one thing you should do, and that as soon as possible – Famous American burger franchise And without using the kids' is to visit a recognized franchise expo in your target country. 20 WAYBACK BURGERS college funds... Once again, keep up with Global Franchise and you'll Where quality counts 49 WHY MORE WOMEN find regular updates on upcoming shows and what you can WANT TO FRANCHISE expect to get from them, so I won't expand on the benefits 28 FIBRENEW of such a visit in detail. Your main reason for going will Highly successful repair service Michelle Rowan has the data be to meet prospective franchisees face to face, and a lot 42 FANTASTIC SERVICES 52 5 SIGNS TO LOOK can be read from even a short meeting at a busy show. One-stop shop for home services FOR IN A FRANCHISOR Choose your partner wisely – Obviously, if the lead shows interest, you will be following up with a longer, private meet later. 60 FASTSIGNS here's how Partner a world leader Visiting a franchise show brings the chance to 57 IGNORE THESE PITFALLS glean important and detailed information on a host of 74 HELEN DORON AT YOUR PERIL topics scheduled for seminars and discussions. It offers EDUCATIONAL GROUP Getting expansion wrong risks the opportunity to asses your competition at close range, your brand says Carl Reader Award-winning franchise to communicate your message to a vast number of 76 ORKIN 62 TOP TEN BRITISH visitors and to learn from others who have been on Leaders in pest control BRANDS THAT HAVE the same ride as you. GONE GLOBAL And on, course, it's your number one networking 78 ONE CANNABIS James Fell looks at Brits reversing opportunity. Franchise shows and the annual IFA Time to get on board? the trend convention are the places you will meet people from 66 LET'S WORK TOGETHER every avenue of franchising life, from fellow franchisors, ADVICE AND INSIGHT Why your sales force must to master franchises, franchisees, franchise lawyers, PRs, work as a team marketers and every kind of franchise supplier, including 68 GOLDEN RULES journalists from Global Franchise! 5 UPFRONT FOR OVERSEEING AN A big plus with this is that you generally get to meet Bit-size bits INTERNATIONAL FRANCHISE them with their hair down. I can vouch personally for this, 9 THE RISE AND RISE OF Lauren McKinnie offers a having just returned from IFE in New York, where the THE HAMBURGER pre-flight checklist evening socialising was every bit as useful (and very often Everything you needed to know but 70 SLOW-COOKING SUCCESS noisier) than the formal events of the day. A good tip is were afraid to ask Easy does it, says Matt Ross to find the name of the hotel where the most influential franchising crowd is staying; many a good connection has 16 READY TO TAKE ON 72 EXPOSURE been made over a beer. Use connections to have yourself THE WORLD Upcoming expos and events Adapting your experience to added to party lists – every show has its share of socials. a new market 83 THE LAST WORD It's not unusual for some of the more generous spirits to Experts' opinions throw big restaurant parties and beanos in places where 18 WHAT'S YOUR you can watch the leading lights of the business being LOYALTY STRATEGY? thrown from a rodeo bull. So make sure you're at the next Christy Wilson Delk on why LEGAL you need one big expo. The Global Franchise team will see you there! 30 SHOULD I OUTSOURCE 24 FRANCHISE AGREEMENTS – MY I.T.? THE GREAT ESCAPE Ross Gilfillan And can I save cash doing it? Roz Goldstein looks over your most Editor, Global Franchise important document 33 GF ONLINE [email protected] What's happening wire-side INTERVIEW 34 HOW CAN I TRANSLATE @globalfranmag MY SUCCESS? Why you need to establish a pilot 23 5 MINUTES WITH Global Franchise operation EMMA LUSTY Global U.K. Commercial contract lawyer Global Franchise 39 HOW TO CHOOSE Franchise magazine YOUR BRAND DILIGENTLY 65 5 MINUTES WITH Learning to look before you MARC MUSHKIN leap is crucial Carl's Jr's VP of international sales globalfranchisemagazine.com

INSIDER ADVERTISEMENT SALES DIRECTOR INFO EDITOR Fund Your Venture Global How to find the right financier Mark Forsyth 44 (0)1323 471291 | [email protected] Competive Streaks Ross Gilfillan | [email protected] Franchise Building great sales www.globalfranchisemagazine.com Hot Expansion? Find franchisees MASTER, REGIONAL AND INTERNATIONAL FRANCHISING and masters GROUP ADVERTISEMENT MANAGER SIGNS OF A BRAND ONLINE EDITOR FASTSIGNS: 5 TO PARTNER WITH ESSENTIAL TIPS FOR WORLD-LEADING 7 OVERSEAS EXPANSION Richard Davies 44 (0)1323 471291 | [email protected] SIGNAGE BRAND ARTICLES PACKED 19 WITH EXPERT ADVICE James Fell | [email protected]

TOP OPPORTUNITIES SENIOR ACCOUNTS MANAGER MUST-GO SHOWS ART DIRECTOR Lloyd Oxley Neil Phillips 44 (0)1323 471291 | [email protected] DESIGNERS Luke Rogers, Chris England Published by Aceville Publications Ltd ACCOUNT MANAGER The Boatshed, Sovereign Harbour, NOT A MALE PRESERVE NAIL THAT FRANCHISE Why franchising CREDIT CONTROL Sue Carr 44 (0)1206 505903 Get it right first time appeals to women Craig Bartlett 44 (0)1323 471291 | [email protected] Eastbourne, East Sussex, BN23 6JH.

PAGE RAY HAYS PAGE CARL PAGE MARC 34 Why you need a 57 READER 65 MUSHKIN PUBLISHER Matthew Tudor Printed in England pilot operation Pitfalls to avoid Secrets of succesful at all costs international expansion EDITORIAL DIRECTOR (BUSINESS) © Aceville Publications Ltd ISSN 1744-6988 EXPERT ADVICE 03 Emily Seddon | [email protected] 9 771744 698037 The Superwomen Of Franchising 5 females harnessing the power of proven brands How To Franchise What Your Business Top 10 things to consider Hungry For Success The Warrens Bakery Franchise franchisee growing a £3.99 | VOLUME 15 ISSUE 3 www.what-franchise.com multi-unit retail operation Celebrating 30 years of success with Disclaimer: Limitations of Global Franchise Content: the Global Franchise Content (including any information we publish regarding Third Party Products) is only for your general information and entertainment purposes and is not intended to address your particular requirements. In particular, the Global Franchise Content, including UGC and any other content provided by third parties and distributed by Global Franchise Website, does not constitute any form of advice, recommendation, representation, endorsement or arrangement by Global Franchise. It is not intended to be and should not be relied upon by users in making (or refraining from making) any specific investment, purchase, sale or other decisions. Appropriate independent advice should be obtained before making any such decision, such as from a qualified financial adviser. Any agreements, transactions or other arrangements made between you and any third party named on (or linked to from) Global Franchise Website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. It is not intended to be and should not be relied upon by users in making (or refraining from making) any specific investment, purchase, sale or other decisions.

BFA HSBC POWERBRANDS The WarrensAppropriate Bakery franchisee independent advice should be obtained before making any such decision, such as from a qualified financial adviser. Any agreements, transactions or other arrangements made between you FRANCHISE AWARDS CARE & ELDERLY growing a multi-unit retail operation Finalists supplement inside this issue 22-PAGE CARE SPECIAL and any third party named on (or linked to from) Global Franchise website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website, 4 GLOBALPAGE BEAT THE PAGE FRANCHISE FRANCHISE PAGE TREND | | ISSUE 4.4 32 GLOBAL80 CLOCK FRANCHISE48 AGREEMENTS 64 SPOTTING ISSUEwhether 8.3or not it is classified as “real time”, may have stopped being current by the time it reaches you. The views and opinions expressed in Global Franchise magazine are those of the author(s) and do 9 ways to do more What every aspiring Why retail’s loss is in less time franchisee needs to know franchising’s gain not necessarily reflect the views and opinions of Global Franchise magazine or staff. UPFacts, figures and funFRONT from the world of franchising IN THIS ISSUE: What’s your beef 9 with burgers? What’s stopping you launching into the hamburger market? Lets’ talk about IT 30 Could you save time and money by outsourcing your IT? It’s All About 46 the Money Finding the right franchise partner to fund your expansion

Girls Just Wanna 49 Have Franchises Survey reveals why more women are becoming involved

IN THE NEWS

MEET THE McAMBASSADORS TO AUSTRIA A hamburger restaurant isn’t the first place you’d look for help in a foreign country. Until now, that is. In Austria, U.S. citizens who have become separated from their passports (it happens!) or who have run into other tricky problems can now get help from any one of the country’s 194 McDonald’s. Staff at these restaurants will connect distressed travellers with the U.S. embassy using a 24 hour hotline. To facilitate the scheme, U.S. Ambassador Trevor Traina has signed an agreement with McDonald’s managing director in Austria, Isabelle Kuster. The franchised hamburger chain said it would also extend a helping hand to non-U.S. travellers. More at globalfranchisemagazine.com/news

GLOBALFRANCHISEMAGAZINE.COM 5 GETTING GLOBAL RIGHT

KNOW YOUR MARKET “While the world is growing homogenous in many respects ... the differences in cultural preferences can still make or break a franchise WHAT TO LOOK desiring to go global” FOR IN A … Stacey Ruth, InsideOut Marketing DIFFERENT STROKES MASTER FRANCHISEE “The legislation that applies “A franchisor must feel confident to a business … that the franchisee will know the culture and pathway to relationship success better than the franchisor” between two parties Ken Phipps, Gold’s Gym may be different in another country. Understanding the “They must share your passion and vision and integrate well dynamics of that and how it works, with your team while building and in particular the implications their own” Catherine Monson, FASTSIGNS International of it to you as franchisor is vital.” Carl Reader, d&t advisory

“The availability of a management WHAT SHOULD YOU LOOK FOR team with a track record and IN A FUNDING PARTNER? experience of the sector...is usually desirable, if not essential” “A funding partner Brian Duckett, The Franchising Centre should be able to understand “Master franchisees need to perform your brand inside due diligence into the growth capability of the franchise concept and and out. This means negotiate when possible a less aggressive and knowing your investment costs, more realistic development schedule” Adam G. Wasch, Wasch Raines LLP net worth requirements, multi- unit awards, closing timeline, and even your development schedule” Allison Zorich, Guidant Financial

6 GLOBALFRANCHISE | ISSUE 4.4 ARE YOU READY? DISCOVER A FRANCHISE OPPORTUNITY AT THE HOME OF HOT-N-READY ® — LITTLE CAESARS PIZZA!

59 years of great tasting products Our cheese is a signature blend of We are the third largest pizza chain Our dough is made fresh in stores mozzarella and muenster cheese in the world (based on net number everyday Worldwide growth since 1962 of stores in 2017). Our sauce is always fresh packed Globally in 23 countries with We have been voted “Best Value in never from concentrated tomato paste opportunities to expand into America” for 11 years in a row. (By new markets Sandelman & Associates 2007-2017)

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For more information check out franchise.littlecaesarsinternational.com

SECTOR FOCUS: HAMBURGERS

The Rise And Rise

of the hamburger

There's more to the humble hamburger than bread and patties. Bill Chemero uncovers the secret of success for a great American icon

WORDS BY WILLIAM CHEMERO

GLOBALFRANCHISEMAGAZINE.COM 9 SECTOR FOCUS: HAMBURGERS

obody can pinpoint the exact date the N hamburger was invented, which may be fitting. Hamburgers are timeless. They seem to have been around forever, and they probably will be. It’s easy to imagine that someday when Earthlings are colonizing other planets, people will be doing their best to make sure they bring the hamburger with them. Seriously, mark my words: someday, some American burger brand is going to be fighting to be the first hamburger restaurant on the Space Station, the Moon or Mars. So, what’s the appeal? And why has the love for hamburgers increased, rather than faded, over the years? The easy answer – hamburgers are delicious and convenient to eat on the run – almost sounds too easy. You have to come up with something bigger, such as that the hamburger is an American icon and a symbol of freedom and all that is right in the world. But in many ways, it is just what I said. They taste good, and they’re easily portable. In fact, that that Lassen didn’t like to waste turns out to be very important to the The invention of food, understandably, and he hamburger, both in its history and the hamburger wound up with excess beef and probably its future. If you like your food history with dates attached, it is believed that ended up sticking it in between two the first hamburger was created slices of bread, and customers liked in 1895. Now, many sources it, and for a while, Lassen’s diner pinpoint the starting date as the was the only hamburger restaurant 1904 World’s Fair in St. Louis, in the world. and, indeed, it was a happening That said, nobody knows for sure place. Supposedly, that year, the what happened, and some people hamburger, the hot dog, peanut have pointed out that it seems likely butter, iced tea, the club sandwich, that some unknown person in the cotton candy and the ice cream 1800s may have had the idea to cone all debuted at the fair. If that’s slap some meat between bread. true, somebody get me a time Still, Lassen may have been the machine. I want to go back there one to get the concept going viral, and visit for a day. as we would say today. As for how But the Library of Congress it got its name, it’s said that the credits Louis Lassen as having meat for the first hamburgers invented the hamburger in 1895, came from Hamburg, Germany. though some sources place it Apparently, that grilled ground happening in 1900. One story goes steak Lassen served up was from that Lassen had a diner called a Hamburg cow. Louis’ Lunch, and a businessman darted inside and asked if he could The hamburger today get something made quickly and There are approximately 50,000 eaten easily, while he was walking. burger restaurants in the United Lassen is said to have put some States, according to various figures grilled ground steak between two out on the internet. You could make slices of toast. Another story is the argument that that sounds

10 GLOBAL FRANCHISE | ISSUE 4.4 Later, as the public again became comfortable eating meat, advertising started focusing on the fact that you could get burgers on the cheap. That was arguably a big part of McDonald’s early success. In the early 1960s, one of the restaurant’s ad slogans marveled of their hamburgers, “Real good… and still only 15¢.” Over the years, there have often been themes revolving around burger ads. Wendy’s struck a chord when it had its, “Where’s the beef” ads, arguing that the quality of your hamburger matters immensely. In a lot of ways, that’s how fast casual burger franchises, and many fast casual restaurants in general, came to be. It was a backlash against fast food outlets offering cheap, but not THE AUTHOR very nutritious, foods. William Chemero And I’d like to think that the is Executive Vice restaurant franchise I help run, President at Wayback Wayback Burgers, has come Burgers, a restaurant full circle. Along with stressing chain based out of Cheshire, the excellence of our beef, our Connecticut. advertising often makes the Wayback began point that when you come here, franchising nine years you’re getting a taste of the way ago and currently has 142 units in operation burgers used to be made, before with over 400 more the industry got lazy, a time contracted to open. “There are approximately when quality mattered and when people really cared about the time Wayback Burgers 50,000 burger restaurants in and attention they lavished on has international master franchisees in preparing food. But whatever the the United States” Canada, Argentina, ads’ themes, the message has always Brunei, Malaysia, been that any time is a good time to Pakistan, Bangladesh, eat a hamburger. the Netherlands and in Saudi Arabia. too high, or too low. The National Burgers haven’t always been Currently there are Restaurant Association estimates popular, however. In 1906, when Variety is the spice of life restaurants opened in that there are over 1 million Upton Sinclair’s best-selling novel, But why is the hamburger so Casablanca, Morocco, restaurants in the United States, The Jungle, came out, it exposed popular? After all, a lot of people Kuwait City, Kuwait, al Khobar, Saudi and so 50,000 may well be burger the unsanitary practices going enjoy eating hot dogs, but there Arabia, al Khartoum, restaurants. But what is a burger on in the meat packing industry, are very few hot dog chains Sudan, Kuala Lumpur, restaurant? Some restaurants and, well, for a while, hamburgers (and while we do sell hot dogs Malaysia, two in specialize in burgers – but plenty weren’t thought of very highly. So, at Wayback Burgers, we never Brunei and Buenos of restaurants offer a little bit of when you had restaurants later, considered calling ourselves Aires, Argentina. everything, including burgers. If like White Castle, coming on the Wayback Hotdogs). Or think about you’re an Italian restaurant, but you scene in 1921, a big message was something like a club sandwich have burgers, do you count that as – we’re clean and responsible with (which we do not sell). It’s very a burger restaurant? Probably not. preparing our meat. That’s why the tasty, at least in my opinion, and What about a hospital cafeteria that buildings were white (you associate done right, a club sandwich has a sells burgers? Also, probably not. the color white, like white sheets lot of good, varied meats. But there Still, my point is – even places that and a hospital, with cleanliness), are not club sandwich joints, the aren’t considered burger restaurants and the customers could see their way you have burger joints. I can’t often sell burgers. They’re sold just burger meat being ground through think of any club sandwich chain. about everywhere that people eat. a window (the unspoken message You tend to not go to a baseball It is believed that Americans eat 14 was: We’re transparent, and see, stadium concession stand and order billion burgers a year. everything’s fine). a club sandwich.

GLOBALFRANCHISEMAGAZINE.COM 11 SECTOR FOCUS: HAMBURGERS

Ramen noodles, fried bananas and important to consumers, so while peanut butter, cranberry sauce and a burger chain can and should more. You can even find recipes for brag about its quality, this may doughnut burgers – a hamburger not distinguish greatly from many in between glazed doughnuts. And competitors. But because of the while some burger purists may variety that a burger can provide, not like it, plant-based burgers are many chains have, at least, had a becoming more popular than ever. lot of success in offering up limited Not that you couldn’t make a time offers. If you come up with club sandwich using doughnuts. an unusual but delicious looking I guess you could, but the burger burger, you’re going to stand out starts off as something easy to hold from everyone else and attract new while you’re, say, driving, and it’s guests – at least for a while. tasty, and you can build out the If there’s a recipe for a successful burger from there. I can’t imagine hamburger in fast casual, I think My theory is that not only is the successfully eating a club sandwich you’d want to include choosing your burger tasty and easy to eat – the while driving. Of course, you could image and getting it right as well as burger may be greasy, but the buns argue that hot dogs are versatile, an uplifting décor, colors, uniforms are not, making it easy to hold too, and yet, hot dog franchises and a logo. There are many with one hand – it’s very flexible. haven’t caught on the way burger different approaches to the look of a Few burgers taste exactly alike for franchises have. The public may restaurant, but you definitely don’t starters, due to the different ways just like what the public likes. want to offer a sense of drab or one can grill and the varied types sameness. You want to be inviting. of meat, and thanks to the magic Make it an experience Again, I think that’s why fast casual of toppings, a restaurant can really Because you can do so much with restaurants are thriving. They’re differentiate itself. Over the years, these delectable delights, that has inviting people in, to sit, relax, have we have seen cheeseburgers, bacon helped each hamburger restaurant a bite to eat, and not eat food that burgers, mushroom burgers, and brand differentiate itself. Frankly, has been rushed out and warmed burgers slathered with onions it’s becoming harder to do in recent up for hours under a heat lamp. or avocado – or all of the above. years. Even burger chains that used You also want to think about how A couple years ago, the website to be associated with, say, frozen you’re going to serve your burger. Mental Floss made a list of some beef, like McDonald’s, are starting You want it to be in a convenient of the weirdest toppings to ever to embrace the idea of offering package that keeps the food hot, but land on a burger, and they included fresh beef. Quality has become very it needs to be eco-friendly. In short,

12 GLOBAL FRANCHISE | ISSUE 4.4 you offer food, even down to the “It’s easy to imagine that someday when package, that people can feel good about consuming. Earthlings are colonizing other planets, And, of course, you want to think people will be doing their best to make about promotional ideas, novelties and special offers. For instance, sure they bring the hamburger with them” every year, Wayback Burgers celebrates National Burger Month in May and Free Shake Day in June Opening that first end to, more likely, somewhere in with free giveaways and discounts. hamburger franchise the neighborhood of $250,000. We often offer limited time orders I’m often asked how you know if Then there’s the dining room, where with fun and sometimes bizarre you’re ready to buy a franchise. you’ll be buying tables and chairs milkshake flavors; we’re still pretty From the discussions I’ve had with and booths and soda fountains. proud of our milkshake that had numerous people, who end up Every time you think to Peruvian chocolate cricket powder buying and those who don’t – you yourself, “OK, it can’t get any more in it, and our beef jerky milkshake. just know. You’ve generally been expensive,” it does. However, when Burgers are fun, and a restaurant’s working in the restaurant business it comes to launching your very promotions should reflect that. for a while, and you’ve seen how own fast casual burger restaurant, other people make decisions, and Wayback Burgers helps you Good management you think to yourself, “I wouldn’t keep it as affordable as possible But good management is extremely do it that way,” or, “If I ever go into (we’ve developed a slimmer, more important as well. You can have business, I will do it that way.” efficient in store design for this great name recognition, and people It’s kind of like being hungry for very purpose). can enjoy or even love your burgers, a burger – you start to become Most new owners tend to be but if the company isn’t well run, famished for the idea of owning your professionals looking for a second there’s no guarantee you’ll last. Just own business. But, of course, you or third act, who want to be their think about Burger Chef, for those need to have more than industry own boss as well as set themselves who remember the once restaurant experience. You hopefully have up for a business that can one day giant that was the second largest money in the bank or such great fund their retirement. But you want burger chain, next to McDonald’s, credit with that experience that to ease into the franchise world after in the early 1970s. By the early a lender has no trouble lending conducting effective due diligence. 1980s, it had faded away, with the you the money for your franchise. Start reading about franchising. remaining restaurants being sold to The estimated investment for a You will, if you get serious and to Hardee’s, which is Wayback Burgers franchise is often the point where you think you’ll still around. Restaurants need to between $350,000 and $400,000, buy a franchise, want a franchise be managed well. It’s just as which you’re going to need for attorney to help you make sense important as getting the food everything from renovating the of all the legal forms that come right. You can’t make and serve interior of a location to filling your with a franchise. great food if you can’t make brick and mortar establishment And I think restaurant owners enough money to stay open. with grills, refrigeration, need to be prepared not to do this And that’s important to think dishwashers and other on the cheap. Your employees, for about, if you’re thinking of starting restaurant equipment. instance, if you want to get good your own burger restaurant or You may find a ones – and keep the good ones – considering buying a burger property that’s need to be paid as much as the franchise. You want to align in a perfect market will bear. And stay up on yourself with a brand that’s growing location, but it the news: as you likely know, the and not one that’s stagnating. isn’t built out for minimum wage, in many states, food service. That is changing, and frankly, for most could run anywhere positions, if not all, you probably from $50,000 on the low will have to pay over the minimum wage. Even in casual fast food, it’s often hard to compete if you’re paying a federally or state mandated minimum wage. But, look, the good news is that if you’re getting into the burger business, you have a product that really is an American icon, beloved around the world and maybe, someday, the universe.

GLOBALFRANCHISEMAGAZINE.COM 13 BEHIND THE BRAND

AT A GLANCE CARL’S JR. RESTAURANTS Established: 1941 Number of franchised outlets: 2,900 US and 940 International Location of units: US based, 45 international Markets Investment range: $400K to $2 Million USD per Restaurant Minimum required capital: $150K (inline) to $300K (freestanding) USD per Restaurant A Hamburger carlsjrfranchising.com/international as having a “Larger than Life Personality” and “Burgers Built to Spill!” while the feeling Carl’s Jr. for the World creates is a “Crave Culture” centered on our big, juicy 100 percent Angus Thickburgers®, our Hand-Breaded Now targeting the U.K. And Germany, Chicken Tenders™, our Hand- Carl’s Jr. Restaurants has gone from humble Scooped Ice Cream Shakes and Malts™, and all our specialties. All beginnings to global success our marketing, public relations, social media and promotions are aligned to communicate this arl’s Jr. has been The first day’s sales totaled compelling message. a destination for $14.75. With his passion for C Handmade American customer service, business grew STRONG COMMITMENT, Classic menu items for to four carts, and then on January UNPARALLELED SUPPORT over 75 years. As a quintessential 16, 1945, Carl opened his “Carl’s Our company and its leaders are California burger restaurant, Carl’s Drive–In Barbecue” in Anaheim, dedicated to helping you build Jr. has a story that dates back to Calif. It was a hit, and wanting growing restaurant operations the 40s and 50s at the dawn of the to keep growing but sensing he that are sustainable for the long modern Southern California car, needed to create a scalable version term. We employ state-of-the-art sun and surf culture … of his restaurants, Carl developed a marketing, advertising and public Carl N. Karcher, along with smaller version of his restaurant – relations to help you stay culturally his wife, Margaret, didn’t realize a “junior” version, hence the name. relevant in your market. what would happen when he On this platform, throughout the We provide you with best-in- started his business, with a single 1950s and into the 60s and beyond, class product development, a hot dog cart, on July 17, 1941, this new “fast food” concept, Carl’s contemporary facility design with using $311 borrowed against his Jr.® restaurants became an icon in dedicated FF&E vendors and a 1941 Plymouth Super Deluxe the restaurant world. tested operating platform backed automobile (plus $15 that Today, the business that began by a strong and experienced Margaret pitched in!). with that first hot dog cart has international team. Carl’s Jr. grown into CKE Restaurants, Inc. provides a network of support, CKE, the parent company of Carl’s supervision, guidance and auditing “We employ state-of- Jr. and its sister brand, Hardee’s, is for its international franchisees the-art marketing, an international powerhouse in the around the world with a dedicated burger segment with almost 4,000 team of over 60 professionals in advertising and public total restaurants around the globe. support centers from the US to Our brands are accelerating Europe, the Middle East, Australia relations to help you growth by emphasizing our core and Asia, backed by our world values and attributes: SUPERIOR headquarters support center in stay culturally relevant BURGERS and GREAT SERVICE Franklin, Tennessee, numbering in your market” with the VALUE and the over 150 and growing. CONVENIENCE of a QSR. The The company also features a Carl’s Jr. Brand DNA is expressed cutting-edge product development

14 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - Carl’s Jnr

THE PROFILE OF THE IDEAL CARL’S JR. FRANCHISEE: The brand is growing at a pace that the company wishes Carl’s Jr. is seeking existing multi-unit commitment would require $20 million to accelerate, aiming for 2,000 restaurant operators or hospitality USD in net worth to be presented (with industry groups with experience acceptable third-party verifications) international restaurants in developing non-competing international and $6 million USD of that in available the next several years. If you or regional brands. The ideal candidate liquidity. In markets where free-standing are interested in opening a has an infrastructure in place already restaurants are not as prevalent and dialogue with Carl’s Jr. about to find excellent sites, develop the real in-line locations predominate, these the possibilities to become an estate, operate to system standards requirements are altered to reflect the and manage the supply chain and other lower investment level. In addition, “area developer” owner-operator key functions locally with Carl’s Jr.’s excellent credit and a good business franchisee in one of our targeted international support. reputation along with presenting a well- markets, please contact our Financial requirements are comparable thought-out and researched business plan professional franchise sales and to other major international QSR showing the capabilities and connections brands, with a minimum commitment to succeed is required. development team. of 5 restaurants over a mutually agreed All details can be discussed in an initial For more information in general, upon timetable: showing a minimum call or e-mail exchange with Mr. Mushkin. please visit carlsjrfranchising. demonstrated net worth of $1 million If you believe your group fits our profile com/international. If you USD per restaurant committed with 30% and if you wish to be a part of this growing would like to be considered for available liquidity. segment of the restaurant industry please As an example, a 20-restaurant reach out to us now! a franchise, please contact Marc Mushkin, CKE’s Vice President of International Franchise Sales & test kitchen in its central support Carl’s Jr. has a long history of Development. A 35 year industry center in the US and a supply chain success and is expanding rapidly veteran with experience developing and quality assurance team based in Mexico and Central and restaurants in 25 countries over in regional international centers, South America as well in Canada four continents, Marc is based in visiting each market regularly and the Caribbean. the US and can be reached at +1 and working with our world-wide In Asia and Oceania, Carl’s Jr. (305) 588-2724 | E: mmushkin@ network of suppliers and vendors. has built on its presence in SE ckr.com. For European and UK This commitment is top to Asia, New Zealand and China, inquiries specifically, please reach bottom in our company. Under opening to huge crowds in the out to our Europe specialist, the leadership of CKE’s new CEO, past two years in Japan and Benjamin Simon, VP for Franchise Ned Lyerly, and our President, Australia. Carl’s Jr. now has five Sales / Europe. Benjamin is International, Mike Woida, Carl’s Jr. regional franchisees in Australia experienced in major brand has been growing at an impressive – each developing rapidly – with franchising for many years and pace across several continents. Ned several more area developer he is based in France to serve our and Mike have a combined 75 years regions open for development in European candidates. Mr. Simon of experience in this great company: NSW, WA, the ACT and parts may be reached at +33 (7) 71 28 07 a tenure unprecedented in major of Queensland. 47 | E: [email protected]. international brands. Together, they have built CKE’s international system from under 100 restaurants to nearly 1,000. And CKE’s entire leadership team is committed to supporting and guiding Carl’s Jr.’s expansion across the globe. Drilling down to each major international region, our system is led by experienced general managers supported by country directors and dedicated teams in place and is growing as our system expands.

FOCUS ON GROWTH MARKETS Carl’s Jr. is targeting key international markets in Europe for expansion: highlighting the UK and Germany. Our newly-opened European markets of Denmark, Spain, France and Belarus, added to our presence in Turkey and Russia, have been well received and are establishing our brand in this important region. In the Americas,

GLOBALFRANCHISEMAGAZINE.COM 15 INSIGHT

Ready To Take on the World?

Successful international expansion is not so much a matter of taking a product to the world, it's more about selling an experience that's adaptable to the new market

WORDS BY STACEY RUTH

our words define the contradictory. Many global be aware that checking off all essence of what it franchising consultants caution the recommended globalization means to be a global brands not to begin global preparedness boxes does not exempt F brand: Naughty. Green. franchising just because someone in it from having a struggle, or even Pork. Burger. another country approaches them failing, internationally. The Naughty Green Pork Burger with the flattering offer to become That is why Burger King’s THE AUTHOR was a sandwich sold in China, by their first global master license. Naughty Green Pork Burger is Stacey Ruth is the the iconic American-based fast food However, Gold’s Gym succeeded such a classic example of what it founder of Inside Out franchise, Burger King, which has in that very scenario when two means to be set up for international Marketing. She is a enjoyed a lengthy reign in the top Americans living in Russia saw marketing success. Here are the leadership and brand- ing speaker on the 20 global franchise brands. With its an opportunity for a fitness three key lessons this sandwich Unstoppable Leader green-colored bun and pork patty, concept there. teaches franchise concepts and The Unstoppable the Naughty Green Pork Burger was It is precisely this unpredictability considering amplifying their Brand. She is a brand developed specifically for the Asian that makes international franchising global presence: consultant, and launch of Angry Birds, and was all so fascinating, challenging, and author of Truth and Dare: Inside about the local Chinese consumer. worth exploring. Any franchise Out Marketing. Successful marketing is always considering going global, or who InsideOutSmart.com based on a deep understanding has become international, but www.unstoppable of a brand’s consumer above might be uncertain of lbrandleader.com all else. While the world is how to ensure growing homogenous in many their success, respects, thanks to social media, should communications technology and international travel, the differences in cultural preferences can still make or break a franchise desiring to go global. What has defined top global franchise brands’ success is multi-faceted, and often

16 GLOBAL FRANCHISE | ISSUE 4.4 Successful global brands country, and readily crosses borders what Simon Sinek made famous as the market an experience when that consumer experience is organizational “Why”. So, when Gold’s It is seductive to believe you are selling clearly understood by the brand. Gym, which is focused on health and a product, whether you have a flame Then it can be appropriately adapted wellness, entered the Russian market, broiled burger or a hotel room. according to cultural preferences. they could incorporate a banya (a popular Nothing could be further from the truth. Successful international franchise “Successful international franchise brands understand that what they are selling is an experience, which brands understand that what they far outweighs the product. Brands are selling is an experience, which that understand this have what in marketing is known as “brand far outweighs the product” intimacy”. Brand intimacy, identified by the MBLM Agency, recognizes how vital the emotional bond between According to Dr. Cassandra Hill, Slavic steam bath with a stove) into their consumer and brand is. From Executive Director of the Choice concept in that market without detracting McDonalds to Ace Hardware and from Hotels Owners Council, “Every hotel from their original brand in any way. Aussie Pet Grooming to Kumon and room ultimately provides a guest the ReMax there are universal emotional basic needs, a bed and a bathroom. Successful global experiences customers all over the What is happening now is that we are brands are humble world have when they interact with selling a unique experience that begins Regardless the success a system has these brands. at the point you make the reservation experienced, each new country presents The most intimate brands have throughout your stay, and concluding a new set of laws, regulations, economics, been shown to outperform in revenue with the checkout.” cultural preferences and biases, that and profit annually and also over a simply cannot be studied superficially duration of time. The goal of brand Successful global brands from afar. Additionally, whether a brand intimacy is to create long-term are consistent – not rigid is first in the market, and must educate purchasing relationships between In order for a brand to be flexible and consumers about itself, or are competing consumers and the brands they adaptable in its product offerings, with thousands of franchise concepts choose, which starts in their primary just as Burger King was, it must in the US, gaining traction is rarely be crystal clear on what defines its an overnight event, and almost never essential culture and identity in its effective without local resources. home country first. That essential Humble brands also understand that reason to exist then translates they will inevitably make mistakes. A universally across all former Director at global marketing cultures. It is giant, Coca-Cola (infamous for the mistranslation of its name as ‘Bite the Wax Tadpole” in some Asian markets), put global branding this way, “There are going to be mistakes – we know that. But don’t take yourselves too seriously. Mistakes almost always come from not researching and listening to local experts. Never assume they are just going to love us no matter what.”

GLOBALFRANCHISEMAGAZINE.COM 17 INSIGHT

What's Your Loyalty Strategy?

Franchise loyalty is the glue which sticks franchise systems together, argues Christy Wilson Delk

WORDS BY CHRISTY WILSON DELK

opened my Kids R Kids when he learned that the British drink simplifies your planning, leadership Academy franchise in their coffee take-away (to-go) style and management tasks while keeping I 1998 in a very culturally and so prefer drive-through service you fully aligned to your franchisor’s diverse area of Orlando, over going inside. The company also brand and processes. I’ve been told that Florida. Although many friends reacted learned that classic coffee-sipping cities the Four Pillars Approach represents as if I had planted my franchise flag in like Paris and Vienna actually desired everything a franchisee needs to know THE AUTHOR a different country, this was an aspect the “Starbucks experience” rather than and that is probably not found in the ”Christy Wilson of opening my business that I had not having the company adopting to the Owner’s Manual. The approach also Delk is a business given much thought to. The area was host country’s traditional coffee houses. helps you maintain a healthy work/life professor at Rollins booming, my franchisor approved my Having learned from previous mistakes, balance and done correctly, enables you College in Winter Park, Florida, as well site plan and I was eager and anxious to Schultz did his homework before to grow your revenue and profits every as a contributing get this dream started. making cultural assumptions. Good year. It definitely did for me. franchise industry This business was going to work. on him. If you own a multi-national franchise writer. With over 15 No matter where it was. It had to. years of successful Everything was on the line. A year franchise ownership, Christy uses her earlier, I had sold my house and “I’ve been told that the Four Pillars cumulative business cashed out my retirement plan for the and franchise down payment on the $1.67 million Approach represents everything experience, as well loan needed to finance the franchise as her new book, a franchisee needs to know and Adventures in construction and get the doors open. Franchise Ownership, Thankfully, with the help of that is probably not found in to consult, lead many loyal clients, staff and others, workshops and I did succeed and after 15 years of the Owner’s Manual” speaking very profitable ownership, I sold engagements to teach others how to my franchise. Now, as a business Walmart was not so lucky. Years ago, or are considering buying one, I implement their own professor teaching management the largest retailer in the United States strongly encourage you to start building 4 Pillars approach to and organizational behavior, I know failed miserably when they expanded your Loyalty Pillar. I believe it’s even motivate and lead that things could have turned out into Germany. Assumptions were more important for you than for them to higher performance and even better and probably sooner had made about German consumers and domestic franchises. This is why. success. You can I planned my franchise ownership workforce that were flat wrong. This learn more at: adventure more strategically. oversight of cultural differences cost How building loyalty will www.Christy Walmart billions of dollars. Franchisors strengthen your business WilsonDelk.com. Why cultural and franchisees cannot afford to make Owning a franchise is hard. For me, intelligence matters these kinds of mistakes. That’s why, as it was the unforeseen challenges that Your adventure, as a prospective a franchisee considering ownership I struggled with the most. Recessions or current global franchise will be of multi-national franchise, it is vitally and competitors are two examples. different from mine. And so, with my important that you quickly build a But like me, you will learn from them professor spectacles wiped clean and strong 'loyalty pillar'. as your business becomes stronger entrepreneur hat on straight, I have and your revenue and margins grow. some strategic and cautionary advice The Four Pillars approach I slept very well at night during the for you. Omnipotent thinking and a A 'loyalty pillar' is one part of the Four 2008 U.S. recession and ensuing lack of cultural intelligence has left Pillars Approach which I relied on as global economic slowdown. Even with a lot of smart people and successful a franchise owner. (I developed this several competitors opening in my organizations scratching their heads. approach over the first few years of local market. Let that not be you or your franchisor. ownership when I realized that my job I attribute that in large part to Howard Schultz, CEO of Starbucks, was more challenging than I initially the loyalty-building strategies and had to re-think his European expansion thought it would be.) This approach programs I had in place. I believe

18 GLOBAL FRANCHISE | ISSUE 4.4 it will be even more important for you because of your unique global franchise structure, regardless of the strength of the franchise brand in the home country. If you need convincing, consider what loyalty can do.

Why building loyalty is the foundational pillar Think about it this way: It’s your loyal clients and customers who keep your cash flowing while you work on bringing in new ones in order to Nor would I have grow your revenue or even open a been granted the second unit. It’s your loyal supervisors ‘forgiveness’ when I and staff that helps you attract and ended up on the local news retain great employees thereby (not in a good way) or when keeping your expenses down and your I occasionally veered from the level of service high. It’s community manual to try something new. loyalty you earn over time through As a loyal global franchise your solid reputation, good acts and owner, there will be many local engagement that protects and opportunities over the years to strengthens your business that will connect with your franchisor. carry you through the unexpected No doubt, you will need to challenges. And for you, it will be discuss big and small cultural Franchisor Loyalty that will help you differences, work through potential best navigate cultural differences that divides that impact your business and may arise between your business, your share your ideas for service or product brand and your local market. enhancements that make sense for your local market. As a loyal global Franchisor loyalty is franchise owner, you will have earned crucial for your success the right for that type of trust and Loyalty is defined as your feelings of meaningful communication. It’s support or duty towards someone or never too soon - or too late- to build something. Like communication, it is a your loyalty pillar today. two-way street. My loyalty towards my franchisor was expressed by my words; such as objecting to negative comments expressed by other franchisees and by telephoning periodically just to ‘check- in’. My loyalty was also expressed by my behaviors. I mentored new franchisees, hosted area training sessions and paid close attention when quality issues were pointed out. Being a loyal franchisee pays off with big dividends. My financial success is proof of that. Without franchisor loyalty, I probably would not have had the opportunity to expand twice; both of which were not standard franchise models.

GLOBALFRANCHISEMAGAZINE.COM 19 BEHIND THE BRAND

AT A GLANCE How Doing One WAYBACK BURGERS Established: 1991 Thing Well Number of franchised restaurants opened worldwide: 166

Number of countries/provinces sold international: 38 BROUGHT Investment range to open a restaurant in the USA: $350,000-$450,000 US International master franchises fees: Determined by size of the country SUCCESS Contact: [email protected] 011-203-649-3392

Wayback Burgers – a fast-casual franchise concept

specializing in burgers and shakes – is expanding its a substandard product. Wayback international franchise operations. Burgers’ global popularity has been by the fact that the hamburger is beloved in America, and ome people stare at The concept has always been that internationally. The burger is seen a menu and act as if when you sit down for a Wayback as an iconic, delectable American they’re choosing their Burgers meal, you should feel as treat. That’s surely helped fuel S Wayback Burgers growth. last meal. Which is if you’re going way back. Wayback understandable. Some restaurants Burgers captures that era when But Chemero says that the serve a little bit of everything, and it food didn’t taste like it was mass company wouldn’t be anywhere all looks so good. How can anyone produced. The burgers were thick if it wasn’t for the people with make up their mind? Investing in and juicy, the fries delicious and the whom they choose to partner. For a franchise can feel the same way. milkshakes hand-dipped. There’s instance, outside of the United There are so many. How can anyone an old-fashioned flavor that will States, instead of selling to know what to choose? never go out of style that Wayback individual franchisees, the company That’s why, at Wayback Burgers, Burgers provides. sells to master franchisees who then there has been a guiding philosophy That isn’t hyperbole served look for single store and multi store in the kitchen from the moment with a side of hubris. The franchisees in each country. The the restaurant was founded in 1991. Wayback Burgers franchise has master franchisee works with new Don’t be all things to all people. seen incredible growth over the franchisees to build restaurants Specialize in one thing that virtually last decade. In 2008, when John in their territory, which means everyone enjoys and agrees upon: Eucalitto, CEO, and Bill Chemero, that ambitious master franchisees the burger experience. Do that, CDO, joined the company, there have a lot of bandwidth to create and the public and business owners were 10 Wayback Burgers in the their own mini-Wayback Burger and investors will come. United States. Now there are empires. Because of that power and 166 locations across the globe, in responsibility, Chemero says that countries as diverse as Pakistan the company has implemented a and the Netherlands, and 515 very thorough process that helps commitments to add more brick ensure each master franchisee and mortar establishments. is positioned to thrive as an How has the company done it? international brand ambassador. Chemero shares some of the company’s secrets. Listen to your guests, your team members, and your It starts with people. You franchisees. Everybody says thought we were going to say that that; not everybody does that. “You it starts with the food, didn’t you? know you’re a success when you see Well, maybe we should have. No the same faces coming into your brand attracts repeat customers restaurant,” Chemero says, of the or word-of-mouth referrals with guests. “We often have repeat guests

20 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - Fantastic Services

“Wayback Burgers captures that era when food didn’t taste like it was mass produced”

other than burgers – as it must. “You always want to be thinking about the veto vote,” he explains. “You’ve got four guys in a car. Three of them want burgers, and the fourth says, ‘No, I’d like salad… or chicken…” Wayback Burgers doesn’t offer everything possible on a menu. There is no Wayback pizza. But it does have chicken sandwiches, fish, salads… It’s at least protected from the veto vote torpedoing group outings to Wayback Burgers.”

Training – and attention is imperative. People who showing up two to three times a qualify to be a master franchisee week. They’re telling us how great are invited to the corporate office the food is. They like the ambiance, for an international discovery day and the customer service.” to learn more about the master But Chemero says that it’s just as franchise opportunity. They will important for corporate to listen also be taken to a nearby Wayback to the people who really make Burgers for lunch, where they can the business work – its master enjoy the food but also be given franchisees, single and multi-unit a behind-the-scenes tour of the franchisees and the team members restaurant. Prospective master that work in our restaurants. franchisees also have in-depth, Wayback Burgers’ success has personal time with the executive always been a group effort and leadership and meet the entire always will be. Wayback Burgers corporate team. Those who become master A competitive price matters. franchisees receive intensive “It’s all about the product, the training and will work closely service and your price points,” with the executive team to Chemero says. Because the total ensure their own restaurants, investment is relatively low for a and their franchisees’ restaurants, fast-casual restaurant, Wayback are a success. Burgers can generally charge a buck And in the end, that’s what or two less than its competitors. “If makes choosing a franchise you’re getting really good food for a easy, or at least a little easier. buck or two less than what you’d get You want to look at your menu elsewhere, you’re going to go there,” the menu are simple to prepare. “We of options and know that the Chemero says. have a lot of minimum-wage team product and service is strong members,” Chemero says. “High but so are the relationships The simple menu makes school students, college kids, senior between master franchisees and the business more efficient. citizens. Our menu is easy to execute, Wayback corporate. Because in the It isn’t only that inventory and yet it’s a diverse one.” restaurant franchise business, if management is simpler with a At the same time, Chemero says corporate has your back, you can mostly burger menu, the items on that the menu does have items focus on filling customer stomachs!

GLOBALFRANCHISEMAGAZINE.COM 21

+

5 minutes with... EMMA LUSTY

Global Franchise meets a U.K. - based commercial contract lawyer

Emma is a lawyer at Shoosmiths GF: Why specialise in franchise law? GF: How do you think other people with an interest in commercial EL: My family has a history of would describe you? contracts, specialising in franchising, but I hadn’t even EL: I think other people would franchising. She works with considered franchise law - I actually describe me as hyper-organised, franchisor and franchisee clients on wanted to be a clinical negligence a little (ahem, very) “OCD” but a wide range of franchise matters lawyer! But I couldn’t resist an otherwise not your typical lawyer. including: drafting franchise opportunity to train at a niche agreements and other franchise franchise practice. It turns out GF: If you had to start over, what documents; advising franchisors that I’m not a fan of litigation so would you do differently? in relation to their resale process would have made a crummy clinical EL: One of my biggest regrets in life and franchisees in relation to negligence lawyer! is that I wasn’t a natural linguist the buying and selling of both at school so gave up the study of franchise businesses and competitor GF: How would you describe the foreign languages at the earliest businesses; and advising franchisors franchising community? opportunity. I wish that I had in relation to breach/termination EL: The franchising community is persevered not least because like no other business community. it would perhaps make me braver issues and disputes. Emma is Despite the perception of with my holiday destinations! an active member of the British Franchise Association (bfa) and GF: What would you have as regularly speaks at franchise events. your last supper? “Despite my family history EL: My Mum’s Christmas dinner GF: Where is home for you? with all the trimmings. And a EL: Having grown up in the East with franchising, I hadn’t cheeky Yorkshire pudding…it is Midlands, I spent time studying at my last supper after all… Warwick University and then the even considered franchise College of Law in York, but the pull law - I actually wanted to be GF: How much travelling do you do? of my roots in the West Midlands EL: Not as much as I would like to was too great and I am now back a clinical negligence lawyer” do! I have been very fortunate to have living near Solihull. had the opportunity to visit many different places across the globe, but GF: Did you always want to be franchisors being in competition in recent years my bucket list seems a lawyer? with each other, in my experience, to be growing rather than shortening. EL: Yes, although no-one is really franchisors are only too happy sure where that desire came from to share best practice and give GF: How do you prefer to relax? since no-one in my family is involved advice to others. There is a real EL: When I’m not in the office you in the law and I had not encountered sense that we are all in it for will usually find me with a gin and lawyers until I did some work the greater good, to promote tonic in front of the TV watching experience at a regional firm during franchising as a fantastic way of a boxset on Netflix and probably my time in the Sixth Form! developing your business. battling with a cross stitch.

GLOBALFRANCHISEMAGAZINE.COM 23 LEGAL

Franchise Agreements – The Great Escape Franchisor-franchisee disputes can be avoided or settled if you use your franchise lawyer effectively. Here's how…

WORDS BY ROZ GOLDSTEIN

t happens all too often: As a franchisor, you “There are a growing number I have spent time, effort of lawyers who regularly act for and good money on getting your template franchise franchisees who are dissatisfied agreement drawn up by a proper with their franchise, saying that they franchise lawyer. When it came to filling in and sending out versions wished they hadn’t signed up to the of the agreement to franchisees who are about to come on board, franchise in the first place” you entrust the task to someone in your admin team. Some months/ regularly act for franchisees who changes of staff and/or office moves. years later, a franchisee is in default, are dissatisfied with their franchise, Documents go astray. If you don’t action needs to be taken. You hand and no shortage of franchisees who have signatures of all the parties the relevant documents over to your visit those lawyers, saying that they on an agreement, you have given lawyer, confident that you have a wished they hadn’t signed up to the yourself an uphill battle. water-tight case. franchise in the first place, and who Then comes the unwelcome are seeking a way out. The smartest Solution: Pay your franchise news: your franchisee’s lawyers have lawyers know all the escape routes. lawyer to take responsibility for found a loophole. Your case is now So if you want to know how to reduce issuing franchise agreements and looking not so water-tight, and your your risks, read on… keeping scanned copies of the lawyers are now warning you about signature copies. the substantial costs and risks of Escape Route 1 litigation. The quick, cost-effective Who has got the agreement? It is Escape Route 2 route to justice that you thought you surprising just how often franchisors You can find the signed agreement, would have is nowhere in sight. can’t actually find a properly signed but the details were not filled in copy of the relevant franchise properly. It is incredibly easy to How can this have happened? agreement. After the agreement slip-up here. You need a keen eye for The truth is that it can happen was originally signed, years can detail to ensure that the right people frighteningly easily. There are a go by before a dispute arises, in signed in each of the right places, growing number of lawyers who which time you may well have had that all the details re territory and

24 GLOBAL FRANCHISE | ISSUE 4.4 fees etc were correctly added. Where competing business for 12 months same form that you have provided to a franchisee provides a personal after the end of the term – should every other franchisee, there may well guarantee, for example, this should run from 12 months from the point be a runnable argument that some be signed as a deed, which means that that you terminate the agreement, provisions cannot be enforced. their signatures must be witnessed or for 12 months from the original by someone independent. If witness expiry date of the agreement. The Solution: Certainly you need a specific signatures or details are missing, or if franchisee’s lawyers may well argue warning in your franchise agreement, you witnessed the signature yourself, for the latter, and tell you that the 12 on the same page as the franchisees’ you could be in difficulty. months has already expired. Because signatures, that they must not sign the law is not clear-cut, your case will before taking independent advice. Solution: Same as for Escape Route be more difficult. Consider even making this mandatory 1. It should only cost a modest before on-boarding a new franchisee. amount to pass the responsibility Solution: Keep rigorous records of this to your franchise lawyers. so that you can flag well in advance Escape Route 5 that an agreement is up for renewal. The restrictive covenants relating to Escape Route 3 Check that your standard agreement not competing against the franchisor The franchise agreement had expired. has a specific provision providing for are too wide, or have left unintended The franchisee continued operating a short notice period for termination loopholes. Restrictive covenants will beyond the expiry date of the if the agreement continues post its not generally be enforceable if they agreement. You may have mentioned original expiry date. are drafted wider than they strictly to them a few times the need for a needed to be in order to protect the new agreement, and you may even Escape Route 4 franchisor’s legitimate goodwill. A have sent them a renewal document. The franchisee signed their franchise smart lawyer will pick at the wording, Nevertheless, it was not signed. agreement without being advised to and will sometimes succeed in finding This does not make your legal take independent legal advice. This a hole which is sufficient to unravel case against the franchisee hopeless. unfortunately leaves a potential door the whole clause. But it does present difficulties, open for the franchisee to argue that particularly if you want to enforce they did not understand what they Solution: Get your franchise the non compete clauses that were to were signing. In particular that they agreement reviewed regularly. Your apply after termination. did not realise they were providing a restrictive covenants might have been There is an open position in the personal guarantee. appropriate for your business as it English courts whether the restrictive As the franchise agreement was in all was at the time of drafting. But what covenants - eg prohibiting the probability provided to the franchisee was once exactly on point might not franchisee from being involved in a on a “non negotiable” basis, and in the be so as your business evolves.

GLOBALFRANCHISEMAGAZINE.COM 25 LEGAL

“You hand the relevant documents over to your lawyer, confident that you have a water-tight case. Then comes the unwelcome news: your franchisee’s lawyers have found a loophole”

Escape Route 6 Escape Route 8 Misrepresentation. The most Your franchisee has been involved in commonly-used escape route that another competing business, and you lawyers acting for franchisees will want to sue for damages. But how use is a claim that the franchisor gave do you calculate your actual losses? a prospective franchisee unrealistic This is less of an “escape route”, but forecasts of turnover, profits, or rather a hurdle that you will need to customer numbers. They then argue climb over if you want a payment by that because of this the franchisee way of compensation. what seem like trivial changes to should be able to “rescind” the their franchise agreements. agreement, which means treating Solution: Do not be deterred. You the agreement as never having will need to think long and hard about Solution: Make sure that your existed in the first place, making post what damage the (ex) franchisee is franchise lawyers explain to you what termination obligations completely actually doing to you, and how they “hard core” restrictions, and “grey null and void. are damaging your income stream. list” restrictions are, so that you can Are they making it harder for you to be sure that nothing in your business Solution: Never make forecasts recruit other franchisees? If yes, you is falling foul, and do not fiddle with of future earnings to prospective are loosing out on Initial Fees and your agreement without legal advice, franchisees unless these are backed Management Service Fees. no matter how tempting it is. up with real-world evidence. Putting a disclaimer in your franchise Escape Route 9 In summary, whilst it is impossible brochure to the effect that the If you are taking action against your to avoid all possible legal risks, there forecasts are illustrative only and that franchisee, you may well want to are some quite simple things you the franchisee’s performance is not have “step-in rights”, which enable can do to ensure that you close off guaranteed will not suffice. As to what you to take over and run your the most commonly-used escape counts as “real-world” evidence, seek franchisee’s business in order to routes. Almost all franchisors have advice from your franchise lawyer. protect your customers’ interests and to deal with legal disputes with the reputation of your brand. But franchisees at some point, and it is Escape Route 7 these are notoriously tricky to draft. expensive and time-consuming. But Your agreement falls foul of the Particularly if you want the right to having to drop action against an ex Trading Schemes Act 1996. This enter your franchisee’s premises and franchisee in flagrant breach is also Act was designed to stop pyramid take over their lease. highly damaging to reputation. Both selling. But the law of unintended you and your franchisee network consequences saw to it that it ended Solution: Take advice from your deserve for that to be avoided. up putting a restriction on the franchise lawyer about whether you enforceability of franchise agreements need a specific Deed of Option in as well. You may be able to draft your relation to your franchisee’s lease. agreement in such a way that you THE AUTHOR avoid the impact of this Act. But Escape Route 10 Roz Goldstein is the managing director and depending on your industry sector, If all else fails, a lawyer acting for founder of Goldstein Legal, a UK-based law this may not be achievable. a franchisee will have a look at firm specializing in national and international whether the agreement, or any franchise law. Goldstein Legal’s strong in- dustry reputation is built on years providing If you don’t remember part of it, is unenforceable because Solution: tailored legal advice to clients in the USA, having taken careful advice from it is contrary to EU competition UAE, and Europe. Roz founded the firm in 2006, after almost 20 your franchise lawyer at the time, law. Most franchise lawyers will years’ experience as an in-house lawyer for major publicly listed check this point with them again. be very mindful of this when companies. She uses her commercial background and franchising Are you doing anything that might drafting franchise agreements. But expertise to deliver business-focused solutions for franchisors and franchisees. Roz sits on the British Franchise Association (bfa) board cause the Act to apply? If yes, you problems can arise where business of directors as the bfa’s legal representative and is a bfa Qualified might need to make changes to your systems change over time, or when Franchise Professional (QFP). www.goldsteinlegal.co.uk business methods. franchisors are tempted to make

26 GLOBAL FRANCHISE | ISSUE 4.4 FIND YOUR FRANCHISE AT FRANCHISE.ORG

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multiple markets, Fibrenew may be a great fit! “With 30+ years With 30+ years of development of development and growth in Canada, USA, Mexico, Chile, New Zealand, and growth in and Australia, it’s now time for Fibrenew to open in the UK. Canada, USA, IT’S NOT REUPHOLSTERY. Mexico, Chile, IT’S FIBRENEW Have you ever noticed a damaged New Zealand, leather sofa, ripped car seat, torn medical bed or cracked restaurant and Australia, seat and wondered; can that be fixed? The answer is yes, and that’s it’s now time what Fibrenew does. We restore for Fibrenew to damaged leather, plastic, and vinyl wherever it is found. Whether on open in the UK.” furniture in homes or offices, in car/boat/plane interiors, hotels, restaurants, pubs or medical IS IT RIGHT FOR YOU? facilities, individuals and businesses We are looking for individuals with turn to us to help save them energy and passion for building a money over the cost of replacing successful business. Someone who their damaged items. We help our understands customer service and customers with on-site restoration always goes above and beyond to service using our proprietary provide an exceptional customer products and specialized processes. experience. Individuals who have People love us for this and we make a self-starter attitude but are also money doing it. It’s win-win! trainable and coachable. We’ll teach you the rest. SIMPLE AND EFFICIENT If this opportunity excites you, OPERATION or you are curious to learn more, With low monthly overheads, few or we would welcome the chance re you an entrepreneur no employees to manage and a flat to talk with you. We invite you to who is ready to join a rate royalty system, our concept is visit our website, check us out on ground-floor opportunity A ideal for individuals who are wanting social media or give us a call. Ask us in the UK? If you are to be in business for themselves about attending one of our monthly looking for a business concept that but not by themselves. You’ll be an Franchise Opportunity Webinars can’t be outsourced or replaced by independent business owner but where you can talk directly with machines, with rock-solid support, with the backing of a proven system existing Fibrenew Franchise marketing and technology systems, and team that has decades worth of Partners and Team Members from an exceptional product line and a experience and knowledge. We’re our HQ Operations to learn more. niche service that’s in-demand across always here to help. Cheers, and talk soon!

28 GLOBALFRANCHISE | ISSUE 4.4 JOIN OUR ICONIC CALIFORNIA BURGER BRAND!

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Should You Outsource Your IT? To fund an in-house IT department or to outsource is a question that this advice will help you to answer

WORDS BY DAN MAY

THE AUTHOR n today’s world of 5 Key benefits to access to a much wider technical Dan May is digital disruption outsourced IT team when you need it. Commercial Director and innovation, at ramsac, an IT I franchising businesses support and managed 1. Reduce and 5. An on-demand services provider need to continually evolve and control costs IT department based in Surrey, UK, have a resilient technology One of the biggest problems for Working with a company offering a proactive infrastructure to stay competitive. people setting up a franchise is gives you access to much more 24-hour service which To keep on top of performance than just technical support. You will cuts the stress out of getting the money together to managing technology. and drive decision making, cover your start-up costs. For have access to teams specialising Dan is responsible financial and business processing many franchises, an in-house IT in procurement, project for the commercial has to be fast, reliable and secure. specialist with the required level management, installation, ongoing development of For franchising businesses, there of knowledge is way out of budget maintenance, and senior level the business and are additional considerations IT management oversees ramsac's – IT Managers earned an average marketing, which need to be taken into salary of $149,730. And what do relationship and account to ensure the right IT you do when that one resource is CHOOSING business infrastructure is in place to on holiday or sick? Add in the costs THE RIGHT development meet the franchisees and SUPPLIER functions. of training, pension, benefits and franchisor’s needs. other employer costs, the true price Once you’ve decided to outsource When buying a franchise, quickly ramps up. This is money some or all of your IT functions, it’s you run the risk of choosing that could otherwise be spent on imperative to choose a provider who a franchisor that is great at business-critical activities. understands your needs and will be selling but is lacking when it aligned with your business. Some comes to supporting franchisees. 2 Focus on the day job franchises may have preferred Fortunately, outsourcing IT Some franchise owners are forced suppliers, but depending on your support can fill the gap for both by necessity to assume the role set up, you may have to look for parties. Because, while franchises of de facto IT support because your own supplier. It’s not just there's no one around to handle it. about awards and accreditations. “Outsourcing your IT Outsourcing IT can allow you to Franchises looking for an focus on running your business and outsourced IT provider should efforts reduces your frees up staff to concentrate on consider the following: their key duties. overheads and allows 1. Culture 3. Support your franchises Your chosen partner will most you to focus on running With the right business relationship, likely be providing your business you can use your outsourced IT with remote helpdesk services and your business” partner as your preferred partner onsite duties. They are an extension to your franchisees. This gives you of your workforce and it’s important come in all shapes and sizes, the and them a central point to which to they understand and can align with benefits of outsourcing your IT address any IT issues. your culture and vision. efforts are universal. Outsourcing your IT efforts 4. Access to specialist 2. Strategic input reduces your overheads and allows expertise and the You want more than simple break/ you to focus on running your latest technologies fix support from an IT outsourcer. business. At the same time, you One of the biggest benefits of They should understand the needs get full support for any existing IT outsourcing is that you get access and demands of a franchise and support you have with specialist to a much bigger team of experts. offer strategically led advice to expertise and technologies Working with an appropriately- help you make the right available on demand. sized outsourcing partner gives you IT decisions.

30 GLOBAL FRANCHISE | ISSUE 4.4 3. Relationship other than it’s the best choice them often considered less risky by management for your needs. entrepreneurs. The reality is that As well as technical staff and no franchise is immune to changes services, you need to ensure 5. Ability to offer in the market and the changing your chosen partner has the appropriate services demands of customers. personnel and attitude to manage and contracts This is where having an agile and relations and ensure a successful There’s no “one size fits all” service effective outsourced IT company outsourcing experience. If you are for IT Outsourcing. You may can be so advantageous. You can relying on them to provide support require 24/7 helpdesk access, and evolve your internal processes to all your franchises, you need frequent onsite visits or you may in response to demands without to make sure they're happy to have a dispersed workforce and changing the outward face of the handle requests from multiple cloud-based services where remote franchise, giving you the best of points of contact, potentially management and administration is both worlds. all over the country. key. Successful outsourcing requires Outsourcing enhances your a provider who can offer the productivity and delivers essential 4. Vendor impartiality options and services to meet your support without excessive costs. One of the reasons for outsourcing requirements and adapt to changes Ultimately, the benefits of is to have advice on choosing the in your franchise, whether they outsourcing your business IT right solutions and technologies. come from the head office or come needs to a company will vary To this end, make sure your from internal innovation. depending on your needs. It's supplier is giving impartial advice Franchise systems are based important that you choose the and is not motivated to sell a on a proven model that can be right solution for your business. particular product for any reason successfully replicated. This makes

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UK UNDER THE SPOTLIGHT IN THE LATEST WIRE WHATS Whether you're interested in expanding your British franchise overseas, or you've been eyeing TRENDING up the UK as the next market to launch in, the latest edition of Global Franchise's Wire focuses “Fitness on everything British. and health From rounding up the most successful UK food master franchises that have gone global to looking at the franchise problems international brands have with coming to the UK – and a little Brexit coverage opportunity thrown in for good measure – this document will provide you with everything you need to pages have know about the state of franchising in Blighty. If you're unfamiliar with Global Franchise's received a Wire, it's a series of downloadable monthly reports compiled by experts in the franchise field substantial with a key focus on sectors, trends and regions currently influencing or affecting the world of amount of website traffic franchising. Download your copy for free at globalfranchisemagazine.com/wire over the last month, showing that it's not only consumers COMING SOON: VIDEO MASTERCLASSES internationally. Most of the team members that have an appetite for ON LAUNCHING IN THE U.S have field experience franchising in over 30 wellness and exercise concepts, but investors, We recently partnered with the FranLaunch countries, making them perfectly positioned to too. The health food and USA team to bring you masterclass-style bring you tried-and-test, must-know expertise. fitness franchises currently video classes covering how to successfully Keep your eyes peeled and bookmark attracting a lot of attention launch your franchise into the USA. Hosted globalfranchisemagazine.com/videos to from our web visitors by FranLaunch USA's Ray Hays, and ensure you don't miss out! include F45 Training, centred around his P.A.C.E concept, these Boost Juice, and 9Round. online quick-fire tutorials will run you Make sure to head to through everything you need to know globalfranchisemagazine. about testing and successfully bringing com/master-franchises to your brand to the U.S. take a look for yourself.” The FranLaunch USA team has a passion for cross-border franchise expansion and James Fell, Online Editor understands the challenges of doing business of Global Franchise

GLOBALFRANCHISEMAGAZINE.COM 33 INSIGHT

HOW CAN I TRANSLATE MY SUCCESS?

Establishing a pilot operation is an essential step in your journey into new international markets

WORDS BY RAY HAYS

34 GLOBALFRANCHISE | ISSUE 4.4 s franchisors explore market opportunities A outside their home country, one key question typically stands out. How do we know that our concept’s success will translate across international borders? Unfortunately, this question has no easy answer. Entry into a new international market involves many variables – known and unknown – which could impact a franchise’s ability to thrive. International franchisors face many pitfalls, such as regulatory requirements, labor laws, supply chain, cultural norms and customer tastes, just to name a few. Even “Most international franchise international markets that may seem similar – such as the U.S. and Canada executives would agree that – have significant differences that may require unique adaptation of the selling franchises into a new franchise business model. international market is chancy Market research can be helpful to identify potential obstacles in new without a pilot operation to test international markets. However, even the most detailed market study may the franchise model” overlook unanticipated challenges that will only arise post-launch. So what level of testing time to begin selling franchises in Herein lies the importance of a pilot and proof of concept is a new market is a judgment call unit to show proof of concept for a necessary to begin selling that takes into consideration pilot franchise through daily operations, franchises? operating data, market feedback where the rubber meets the road in In an ideal scenario, a franchisor and a brutally honest assessment of the new market. or master franchisee in a new hurdles encountered and expected. Most international franchise international market would And perhaps the most important executives would agree that selling operate multiple pilot units up factor in the decision is your level franchises into a new international through a cumulative return of of confidence in the ability of the market is chancy without a pilot investment or beyond. However, master franchise to lead, grow and operation to test the franchise model. reality conflicts with the ideal, and manage a franchising system with Early franchisees risk becoming lab this is seldom feasible. A master your brand.” rats that meet an unfortunate demise. franchisee looking at larger scale If we agree that a pilot unit is Take the example of one U.S. development is under immense necessary to test a franchise in a franchisor, who decided to begin financial and competitive pressure new international market, then selling franchises into Canada to subfranchise and grow quickly. who should own and operate that under a direct franchise model Reality calls for a balanced pilot operation? Typically it comes without a pilot unit. The first couple approach to testing. Minimally, down to two scenarios: a master of Canadian franchisees realized from an operational data franchisee-owned pilot or the – too late – that the American perspective, a franchisor should franchisor-owned pilot. management software could not look for ramp and trajectory in be adapted to meet regulatory the key metrics for their franchise The master franchisee- and tax standards in Canada. The – probably some measures of owned pilot unit new, untested Canadian franchise customer counts/retention, average In the heyday of global franchise locations were dead in the water transaction value, costs of sales, brand expansion from the 1980s to with no software solution to run the costs of labor and real estate, the 2000s, many U.S. franchisors business. These Canadian locations and overall movement toward chose to have local master were forced to close, and after a breakeven and profitability. franchisees – or country Licensees, painful lawsuit, the U.S. franchisor Kurt Ullman is a 26-year veteran Area Developers, etc – own and retreated from Canada for years of international franchising, who manage the first pilot operations in to come. Similar cautionary tales has taken diverse concepts across new international markets. abound in the international borders into 96 countries. He puts During the 1990s, I worked on franchise world. it this way: “Ultimately, the right dozens of master franchise launches

GLOBALFRANCHISEMAGAZINE.COM 35 INSIGHT

around the world. Typically, the expansion today. That said, the When a master franchisee plan was simple. The franchisor master-led pilot approach is far is responsible for opening and would come to the table with the from flawless. The ugly truth is that operating a pilot unit in a new concept, branding and business international master franchises international market, it’s critical for model, and the master franchisee have a historically high failure the franchisor and master to work would bring the local market know- rate. I’ve had the unfortunate in unison to ensure a successful how and investment to launch and task of terminating or replacing market entry. For example, localize the concept in their market. struggling master franchisees, and UK-based CrepeAffaire entered This would include the master’s typically, they failed for one of two Kuwait in 2015 and Saudi Arabia investment in a pilot operation. reasons. Either the franchisor failed in 2017 under master franchise Once the pilot reached operational to commit adequate resources agreements. CrepeAffaire Founder stability to the satisfaction of the to the support of the master and CEO Daniel Spinath says, franchisor, then the master would be franchisee during the pilot phase, “The early pilot units operated by allowed to begin selling franchises. or the franchisor signed on with an our master franchisees in Kuwait This continues to be a popular unqualified master franchisee who and Saudi Arabia required a close strategy for international franchise was not up to the task. collaborative effort between our local master partners and the UK headquarters team. Together we were able to find solutions to key THE AUTHOR challenges, such as importation Ray Hays is Managing of our food ingredients and Partner at FranLaunch adaptation of our model to the USA, a franchise retail environment in the Gulf management firm that region.” After several years of fine- facilitates US market entry for international tuning the early units, CrepeAffaire franchisors. He has a is now in expansion mode in the 28-year track record Gulf States, with four Crepe and field experience Affaire locations currently open in over 50 countries worldwide. Ray has in the region and eight new managed more than 30 locations slated to open over the new-country launches next two years. for a wide range of franchise concepts. Learn at www. The case for a franchisor- franlaunchusa.com. owned pilot unit Australia is one market where many international franchises have stumbled – especially American concepts. Not surprisingly, Alan Branch, President of Global Development for Australia-based OptiVance 360 is a strong advocate for franchisors taking control of international pilot operations through the initial growth phase. Branch believes that it’s a matter of good business, accelerated growth, greater profits, as well as protection of the franchise’s culture and brand. “Franchising internationally requires the building of the franchise brand and culture, country by country. Every franchisor must protect its brand and culture. Each time the franchise moves to a new country, that brand and the culture risk becomes diluted and or corrupted. These problems will be magnified through social media, with disgruntled master franchisees and individual franchisees – both in the target country and in the franchisor’s home country

36 GLOBALFRANCHISE | ISSUE 4.4 – running to speak to lawyers,” “When a master Choosing the best Branch says. approach to reach Taking the step of establishing franchisee is responsible proof of concept franchisor-owned pilot operations The ideal strategy for a pilot can provide major financial gain, to open and operate operation may vary based on the proving the launch of concept franchise concept and the and increasing the fee for country a pilot unit in a new particular international market. A rights. Alan Branch adds, “Many international market, master-owned pilot may work in a franchisors claim this cost is too small international markets, but large high, but compare it to the cost it’s critical for the markets, like the United States, may of litigation by an angry master merit the investment in a franchisor- franchisee, a worldwide class franchisor and master owned pilot. Other pilot strategies action or stalling future country have proven successful beyond expansion.” to work in unison to master-owned and franchisor-owned One example of a successful ensure a successful units. In some cases, franchisors chose franchisor-driven pilot strategy to acquire competitors (independent is New Zealand-based Driving market entry” or franchised) in the new market and Miss Daisy, a socially responsible convert them to their franchise brand. franchise providing companion to placing a master licensee, the Another franchisors launched pilots driving services for those in need. key ingredient from our perspective under a joint venture or hybrid JV- This franchisor directly established was our hands-on establishment master agreement. operations in the United Kingdom of a quality bunch of related Regardless of the approach, pilot over a 12-month period, prior to suppliers, which were crucial for units play a critical role in adapting appointing their master franchise. our business ongoing. Having done the franchise and reaching proof They are now entering a third this in our home country, we knew of concept in new international country (Australia) ahead of its exactly what we required. Having markets. Those franchisors who original international schedule, these foundations laid and ready commit the time and resources to the along with additional plans to to go was critical to introducing successful launch of international expand across Europe. our first franchisees and creating pilot operations are better positioned Jack Harper, Founder and Owner momentum and value in the early to build a lasting global franchise of Driving Miss Daisy states, “Prior stages of development.” expansion program.

GLOBALFRANCHISEMAGAZINE.COM 37 BEHIND THE BRAND WINNERS PROFILE Helen Doron Educational Group “ Our Franchisees Winner of the 2019 Global Franchise Awards Best own and run their Lifestyle Franchise is Helen Doron Educational Group own businesses, but know they are How would you describe the Helen Doron What does the Helen Doron Educational Educational Group? Group consist of today? integral parts of Beginning back in 1985, the Helen Doron My goal was to create the very best, fun, Educational Group represents an outstanding musical, stress-free education that brought an international educational franchise business opportunity the highest level of results, as well as all-round network and for qualified entrepreneurs and prospective development of the children. I wanted parents franchise partners. Featuring an exclusive to understand children’s potential. I started strong members methodology and pioneering educational with teaching English, as the learning of an materials, we offer innovative, results-oriented additional language brings the greatest brain of a team” educational programmes for babies, children, development. However, I am happy that our adolescents, and teens the world over. educational group today has the following franchises: Which qualities earned it the title of Best Helen Doron English: for aged 3 months – Children’s and Educational Franchise? 18 years using a unique and highly effective Based on our truly unique methodology and methodology and materials and filled with fun more than 30 years of experience, we built games and song. a community of professionals who share MathRiders: for ages 2 – 18 uses exploratory common goals and values, and are passionate models and inquiry-based learning. It makes about education and children—and about their maths real, meaningful, musical, motivating business. We all learn from our experience and and fun. from each other, and that makes professionals Ready Steady Move: for ages 3 – 7 is an comfortably find their own places within innovative whole-brain fitness course using our global community. They know they have elements from a variety of disciplines, comprehensive business support and are giving including yoga, Pilates, dance and martial arts. the children in their respective countries a The movement routines are used to introduce better future. a basic vocabulary in one of six languages: English, Spanish, German, Hebrew, French, or What makes a Helen Doron Educational Mandarin. Group franchise an attractive proposition Helen Doron Kindergartens: for joyful for a potential franchisee? learning, play and discovery, packed with We offer a time-proven business model and proprietary content. unprecedented support. Our franchisees own and run their own businesses, but know Nearly three million children have learned they are integral parts of an international English with the unique Helen Doron network and strong members of a team. Our methodology. Today, Helen Doron English business model allows them to develop their is an international educational franchise own style, backed by an efficient and effective with more than 1,000 learning centres in 37 support system. Our leading countries, and still growing. franchise, Helen Doron English, is unique in its methodology as it teaches English the way children learn their mother WHAT THE JUDGES SAID tongue. Our extensive range of “Helen Doron Educational Group exclusive learning materials for has made the effort to keep up with innovation and changing educational ages three months to 19 years of environment, has lots to offer for age includes audio, video, print potential international franchisees, and materials, digital materials, apps, has made extra effort to have a portfolio online games, an internet radio for the future” station for teens, and more.

38 GLOBALFRANCHISE | ISSUE 4.4 INSIGHT

How to Choose Your Franchise Diligently Being your own boss can be very rewarding. But before you embark on this life changing journey it’s time to have a conversation with the most important person in the room….YOU.

WORDS BY MATT O’NEIL

fter 20 years in the does provide a sound business Contrast this with buying a trusted franchise industry I model for those who are unable to national Franchise brand. You have learned that there invent the next big thing. People immediately become part of that A are certain principles who are not pure entrepreneurs but brand family. Instead of having to that you should consider carefully. still want to be their own boss and reinvent the wheel, you automatically Purchasing a franchise can be run their own business. However, inherit the brand history and gain confusing at the best of times. So there are certain things to consider, instant credibility. The franchisor’s how do you choose the right one? before parting with your hard- good news stories that they have Franchising has become big business. earned cash and investing it in a worked hard to build over the years, With over 950 franchise brands in the business format franchise. Below become your good news stories. That UK and Ireland and huge numbers are what I believe are the six key is the power and value that comes globally, franchising is now one of the principles you need to know. from investing in a trusted brand and most successful ways of starting a new it is worth its weight in gold. business. Recognised The value of a by the banks as the safer and smarter 1 trusted brand Can you follow way of starting a new enterprise, Starting your own business from 2 a recipe? business format franchising is an scratch can be difficult. It can take Why do so many people buy cook excellent model for people who want years for people to get to know who books? Well, if you want to cook to “be in business for themselves – you are, where your business is like a master chef, you must follow but not by themselves”. located and even longer to build a the recipe. In franchising the recipe, Not everyone is cut out to run their history of quality client testimonials often referred to as the formula, is own business. However, franchising and brand credibility. the key to success.

GLOBALFRANCHISEMAGAZINE.COM 39 INSIGHT

“You immediately become part Income 5 There’s little point in spending of that brand family. Instead of your life savings on a business that having to reinvent the wheel, you will not produce the kind of income that’s in line with your needs, wants automatically inherit the brand and aspirations. The point is, will the business history and gain instant credibility” produce enough for you financially and stimulate you mentally​? You may be talented and driven but Ask any bank or national/ If funds are tight, then you common sense should prevail. Make international franchise association may be better to stick with a sure you verify what the earnings and they will tell you that the two proven business system with an are. This can only really be done main reasons why franchisees fail, established market that can be by speaking with a wide variety of is not following the formula and backed up by facts and figures franchisees of the same business coming into business underfunded! verified by existing franchisees. you are looking to join. Don’t be Franchising is all about following taken in by the high earners. They the model the franchisor has put in Can you afford it? may be few and far between or place. Just like baking the perfect 4 Remember, the second most there could be other reasons why cake, the franchisor has established common reason why franchisees they are earning more, such as their a successful recipe. All you need to fail is because they come into location or time in the business. do is use the same ingredients and business underfunded. In other cook them for the correct amount words, they can afford to buy Do you have the of time on the right heat and you the business, but can’t afford 6 X factor? will have a successful end product. to run the business and still be Can you really see yourself running The franchisor has established in business 12 months later. this business? Do you have the and built an existing business. So make sure you decide what acumen, determination and drive to The formula has been recorded in you can afford before you start run your own franchise? Will it suit the manuals and in the training looking. This will help you avoid you and your background? Are you programme run by the franchisor. overstretching yourself and enable willing to get your hands dirty, roll If you follow the system and add you to choose the business that up your sleeves and get involved? the magic ingredient, hard work, will suit your pocket. All good questions to ask yourself. you too should be successful. You can do this by finding out I would recommend that you what the true cost of starting involve your partner in initial Is there a market in the business is. This is made discussions, meetings and decision 3 your country? up of the initial franchise making, so they understand what’s This sounds like I’m stating the fee, accountant & legal fees, involved and the commitment obvious. You must satisfy yourself that premises etc. You also need to required by you. Make sure you the business you are buying has an know what working capital you have their full support. established marketplace. It may work need (i.e the money you will Finally, will you enjoy doing it? really well in America - or whatever need to run your business on a Enjoying the journey is key - If country the master franchise is based day to day basis). Finally, when you don’t enjoy doing something, in – but will this transfer to the will you be able to start drawing you won’t do it for long. So picture country where you live? a wage from the business? And where you want to be in five or You could be the first to bring a most importantly, how you are 10 years’ time. Celebrate your new concept into the country and going to pay your living costs successes, it will help to focus your make a fortune, but there is also during the start-up phase? mind. If you are still not sure once the risk that the demand for the Speaking with other you reach the end of this process, product or service may not transfer. franchisees of the same business I would recommend you start it Ask yourself, can you afford to will help you understand how again. You haven’t spent any money gamble your life savings? Is the much money they needed and yet and may help you get to the demand for the business based on how long it was before they right answer. a densely populated city only? Will started making a profit or it work where you live, especially if drawing a wage. You will get a THE AUTHOR you live in a provincial seaside town number of different answers, so Matt O’Neil is Head of Recruitment at Expense or a rural area? How can you follow speak to as many as you can and Reduction Analysts UK, who were winners of the Best White Collar Franchise in this year's Global a tried and tested formula if there you will get a good idea of what Franchise Awards. isn’t one to follow? the average is.

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AT A GLANCE FANTASTIC Technology SERVICES Established: 2009 Number of franchised outlets: where it counts, 400 + Location of units: UK, Australia, USA Investment range: 10 000 - 200 000 people where Minimum required capital: 30 000 Contact: Email: [email protected] Phone: 442078463577 it matters joinfantastic.com

Fantastic Services is the ‘one-stop shop’ for all home services

rom cleaning, franchise with over 400 units in successful use of automation and gardening, landscaping, the UK, the USA and Australia. technology within an industry that pest control, and waste The brand has set out to expand its was lagging in terms of convenience F removal – to handyman, reach through master franchising, and accessibility. The company plumbing, electrical and building offering exclusive rights to partners has invested over £2 million in services, Fantastic Services offers in new territories. building a sophisticated Customer end-to-end property maintenance With so many services and Relationship Management system and improvement to domestic franchise packages to choose from, that works in sync with its websites and commercial customers. What the first word that comes to mind and mobile applications. The started as a small professional is ‘flexibility’ – but what makes result? A fully automated online cleaning company in London about Fantastic Services a truly exciting booking process that doesn’t require a decade ago is now an international brand to partner up with is its any human monitoring. Fantastic Services gives customers easy access to prices and service availability in real time through its online booking platform and GoFantastic – their award- winning mobile app. This makes Fantastic Services one of the most convenient and accessible ways to have a job solved by professionals. And not just any professionals but in-house tradespeople who have all the necessary skills and tools, and aim to achieve a certain level of workmanship. This is what sets Fantastic Services apart from traditional two-side marketplaces where people can post jobs and freelancers bid to get the job – instead, the customer can rely on complete solutions for their needs, all provided by one company. And by having its range of services completely standardized, all jobs are done in accordance with company standards.

42 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - Fantastic Services

customers from day one. It all starts with a streamlined onboarding process in which the partners are introduced to the company’s online business model, service provision standards, and internal procedures. The very same management team that has grown the brand across three continents works closely with all newly- joined partners to ensure their successful start and help them grow their business. Meanwhile, the headquarters of the company is concerned with all marketing, helping Master Franchisees discover local services providers and find them customers. “Fantastic Services is all about delighting the customer. We are COMPREHENSIVE “What makes Fantastic looking for partners who are SUPPORT willing to go the extra mile and “Automation is all the buzz Services a truly exciting provide that special attention to nowadays. But I believe that detail winning the hearts of first- Fantastic Services is a successful brand to partner up time users and turning them into example of a company that resorts fans. That is why we created the to automation only to make things with is its successful Fantastic Club.” says Sovndahl. better for the thousands of people use of automation The Fantastic Club is the who are involved with it.” says co- company’s online premium founder and CEO Rune Sovndahl. and technology” subscription that grants the user In London alone, there are over 500 access to preferential booking, branded vehicles that roam the busy price rates, and seasonal deals. streets every single day, going from reduced by about 10 miles a day There are over 36,000 users one job to another. Due to GPS – definitely winning a few points subscribed to the club. optimization and automatically from Mother Nature thanks to assigning jobs to technicians based reduced carbon emissions. Interested in Fantastic Services’ on their skills, equipment, and Fantastic Services provides business opportunities? Visit proximity to the customer’s address, comprehensive support to their JoinFantastic.com or call each vehicle’s travelled distance is franchisees and guaranteed +44 20 7846 3577

GLOBALFRANCHISEMAGAZINE.COM 43 INSIGHT

What Makes A Saleable Franchise? Some kinds of franchise concepts make particularly attractive propositions to franchisees. Here's why single service concepts can work well

WORDS BY TED RIPPEY

THE AUTHOR eep it simple.” best. This strategy brings brands a • 3. Efficient location openings – As a seasoned It’s the adage we’ve laundry list of benefits, both at the In addition to ongoing operations, aftermarket franchise “ heard time and time franchisee and corporate level. All of single-service models bring a professional and Vice K President of Franchise again. Its message is which, when leveraged correctly, fuel streamlined opening process as the Development at clear: a simple approach often works growth. Here’s how it works. build-out phase, staff training and Take 5 Oil Change, better than a complex one. I feel the operating procedures are generally Ted Rippey launched saying, in many cases, rings true for Make your model more straight-forward than the Take 5 franchise initiative in March the franchising industry as well. more appealing concepts with dozens of services to 2017 and oversees Here’s why. Franchise growth relies on one thing: offer from day one. And, you know the brand’s ongoing One of the biggest challenges for an attractive franchise opportunity. what always goes over well with growth. Before joining franchise brands is differentiation. For an opportunity to be considered franchisees? Low ramp-up time. the Take 5 team, Ted With more than 3,000 franchisors a smart investment, the concept served as the Chief Compliance Officer vying for franchisees, the unique needs to be profitable, ripe for • 4. Simplified business model – at Driven Brands, the qualities of a particular brand aren’t growth and backed by well-funded Streamlined operations coupled parent company of always obvious. While brands go support, training and marketing with a reputation for reliability Take 5. In that role, he about differentiating in several ways, functions. Getting to that point firmly in place, can make a oversaw all franchisee compliance matters. it’s safe to say many rely heavily on may not be an obvious path, but single-service concept easier Prior to joining Driven product and service innovation. I’m could be simplified through a to operate and ensures that Brands, Ted, along here to tell you that might not be your single-service concept. it offers a clear consumer with his father and best bet. brother, founded Single-service concepts, or brands There are four key qualities that 1-800-Radiator, a wholesale auto parts whose vast majority of revenues come make a single-service franchise distribution franchise. from a single source, present a unique model more appealing: opportunity for differentiation. These • 1. Loyal consumer followings – If you’re selling one thing that you’ve “With more than perfected, as opposed to constantly “innovating” to 3,000 franchisors vying reach new customers, you’ll end up for franchisees, the building a loyal, almost “cult-like” following, that values your brand’s unique qualities of a reliability. Prospective franchisees want a brand that carries clout with particular brand aren’t consumers, and a loyal following always obvious” will get you there. • 2. Streamlined franchisee concepts focus on one – maybe two operations – Franchisees have a – services or products, and execute lot on their plates, so a streamlined them better than anyone else. franchise model is often more For our brand, Take 5 Oil Change, attractive, as it can help them run 85 percent of our revenues are their business more efficiently. generated strictly through oil changes. Single-service models can make Instead of relying on additional it easier to source materials and services to drive consumer interest equipment, target local audiences and sales, we stick to what we know and train employees properly.

44 GLOBAL FRANCHISE | ISSUE 4.4 proposition – two qualities a brand the ability to focus and direct franchise opportunity, ultimately that score very high with resources to other key areas of the powering growth. Now that the potential prospects. business that will ultimately drive foundation has been set – with a solid franchise development efforts. offering and the support functions to A well-executed single-service model One function to prioritize is back it up – you’re ready to make a brings these four characteristics franchisee support, meaning dedicating commitment to best-in-class franchise to your franchise opportunity, funding toward increased operational development lead generation. differentiating your concept in the and training resources for your crowded franchise space. franchisees. This will not only support The bottom line them directly at the unit-level (which A single-service concept is not always Save resources, grow will drive systemwide performance), one that only has one offering in the your footprint but investments put toward your literal sense, but rather a model that A huge cost for franchisors is product franchisees can make your brand more features one service or product that innovation. In fact, R&D is one of the appealing to prospects, too. strategically overshadows all others. largest line items on the books for many Finally, don’t forget about marketing While this approach isn’t necessarily brands. With a single-service offering, and advertising. Competition is fierce, a perfect fit for every franchise however, those costs can be greatly – if and brand visibility is fundamental business out there, it’s one to consider not entirely – reduced. The need to to success. When executed correctly, when strategizing how to grow introduce a new service or product marketing and advertising functions your franchise brand into offering every quarter? Eliminated. can enhance brand visibility, drive new markets, while keeping Securing extra budget to market those consumers in and increase sales. consumers coming back introductions? No longer a concern. Inevitably, these outcomes for more. Instead, a single-service model offers will fuel interest in the

GLOBALFRANCHISEMAGAZINE.COM 45 INSIGHT

How will You Fund Your Expansion? Securing the right funding partner is an important step on the road to expansion. Here are the key questions to ask when choosing yours

WORDS BY LAUREN MCKINNIE

hoosing the right needs. Being able to clearly articulate Do they provide funding partner is the characteristics of your start- multiple avenues to C vitally important to ups vs. resales and the candidate 1 make small business your brand’s successful characteristics you desire can help ownership a reality? growth. Not all funding partners a funding partner share success Becoming a small business owner provide the same level of service or stories and demonstrate to you can be an exciting and overwhelming financing solutions, which that they can successfully meet THE AUTHOR time. Choosing a funding partner that Lauren McKinnie is a is why it’s necessary to your needs. offers multiple financing solutions will contributing writer explore different Here are five key questions to only increase your clients' chances of and media associate companies to see ask yourself when looking getting the capital they need to make for East Coast Wings what best at potential funding their investment into that business. Franchise. She fits your regularly writes partners. There are many ways to finance your content for a variety small business such as Rollovers for of business and Business Start-ups (ROBS); SBA loans; franchise blogs. unsecured financing; home equity line of credit (HELOC); conventional loans; etc. Ensuring you partner with a provider that offers a

46 GLOBAL FRANCHISE | ISSUE 4.4 full suite of services is a crucial element Will you be Will that funding partner go of the partnership. supported through the distance to understand 3 technology and 5your brand, your team, and Are you confident in marketing components? your needs? their capabilities and Having insight as to where your A funding partner should be able to 2 do you trust their candidates are at in the franchising understand your brand inside and out. This expertise? process is a necessity. A funding partner means knowing your investment costs, net Often, candidates will seek out their should be able to provide you with the worth requirements, multi-unit awards, local bank to access the capital they real-time status of your pipeline 24/7, closing timeline, and even your development need. This experience usually doesn’t give weekly updates via email and schedule. Further, your funding partner end well because lenders don’t really phone, create prequalification tools should be able to put together programs understand franchise lending. A for your candidates to easily educate for qualified candidates specific to your funding partner should educate, rather themselves on the funding solutions investment. This includes identifying lenders than advise. Every candidate will be available to them, and also develop that have an appetite to consume loans for different with regards to the amount co-branded collateral, videos, your brand and want to do so on a more of debt they want when opening their infographics, and blogs that you expedited basis. doors to operate. A funding partner can share with your candidates. that can inform them of all the various It’s critical to choose a funding partner that ways they can make that happen will Does the funding offers financing solutions tailored to your be instrumental to your candidate’s partner align brand, but who also has the knowledge and success. In addition, confirm that 4with your expertise to execute them. Your candidates funding partner will have a team in company values? need to understand their options in order to place to assist you and your candidates, Choosing a funding partner that has enjoy success for years to come. We all know so you’re not chasing down answers your same goals and values creates that the brand succeeds when their franchisees and updates. a strong partnership. Ask yourself if are succeeding; if you choose a funding they in the business of empowering partner who can offer all the elements above, “A funding entrepreneurs? Will they think outside you will be able to focus on the growth of the box to ensure your candidate has your brand, while trusting that your partner should all the options available to them? Will candidates are in capable hands to access they treat your candidates with respect the capital they need. be able to and essentially be an extension and representation of your brand? Will understand they be passionate about your brand and work with your team your brand in unity? Do they care about inside and out” the success of your candidate long-term?

GLOBALFRANCHISEMAGAZINE.COM 47

INSIGHT

Why More Women Want to Franchise From employment to empowerment: here's what women need to know to be successful in franchising

WORDS BY MICHELLE ROWAN

THE AUTHOR onja Brummer planned Michelle Rowan to put her degree to is President & use teaching physical COO of Franchise S Business Review, an education. But, with independent research state budget cuts hitting school and consulting firm districts, it became clear she specializing in needed an alternative. “I knew franchisee satisfaction that the budget cuts would make and analysis. She sits on the Conventions it difficult for me to get a job as Committee for the a teacher and that they were International Fran- leading schools to cut out chise Association, is physical fitness,” said Brummer. the Vice-Chair of the Women’s Franchise While in college, Brummer Committee, and is a worked as a coach for Amazing Certified Franchise Athletes, which had just started Executive. Michelle franchising. She decided to forgo has facilitated CEO the teaching credential program Performance Groups and Executive and make the leap into business Networking Groups ownership. Sonja Brummer is and also mentors far from alone. The International students at the Franchise Association is seeing “for women looking for work/life University of more and more women entering New Hampshire. balance, franchising offers www.Franchise franchising. And for good reason. BusinessReview.com. Women often bring unique qualities a number of innovative concepts” and perspectives as business owners that bolster their success. Franchising also offers women appointment, or another activity I Rhea Lana’s, a children’s clothing benefits they may not find working want to attend, I can schedule my consignment event business, has all in a more traditional job. Susan hours around it.” women franchise owners. Maranhao, a Wild Birds Unlimited Clearly, franchising can be a “They understand the strength franchisee since 1990, previously tremendous opportunity for women to that comes from being part of a worked for the city of Boston. “The forge a path to meeting their personal high-achieving team. Because of major negative to working in the and financial goals. But franchising this dynamic, they work hard to public sector is that more often than is still not without its challenges. find solutions that meet the needs not, you are not in control of your Franchise Business Review has of the team and organization, career path,” said Maranhao. “I wanted surveyed hundreds of thousands of even if it means great sacrifice for to have a stable future and to not franchisees. Based on our research, themselves,” says Rhea Lana Riner, have to worry about whether or not there are five key things to consider Founder and CEO. Tony Lamb, I was going to have a job come the before investing in a franchise. CEO of Kona Ice, which has nearly next election.” 75% of its franchises co-owned and Similarly, for women looking for Ensure you’ll get the operated by women, says, “From work/life balance, franchising offers support you need. a business perspective, they are a number of innovative concepts 1 One of the major benefits organized, responsive, creative, that offer flexibility and the support of franchising is entering into and excellent at marketing the necessary to be successful. Andrea a proven system. Find out exactly business. Women want to leave Joyce, a franchisee with Dream what the company’s training their community better than Vacations, says, “I work from home, so and support program entails, they found it.” if my son has a sporting event, doctor not just as you ramp up to

GLOBALFRANCHISEMAGAZINE.COM 49 opening, but once your business Ask a lot of questions make sure that whatever brand you is well established. Call current franchisees to choose is a partnership based on “What I most appreciate is that 4understand exactly what mutual respect and trust. While you my franchisor and I work well you’re getting into. Amazing need to feel good about the business together,” says Wild Birds Unlimited’s Athletes’ Brummer recommends you’re entering into, it’s not just Maranhao. “I receive a high level of talking to other franchisees to find about going with your gut. support from my Enterprise Coach. out all the pros and cons before She helps me establish both revenue investing. Ask women franchise and operational goals each year and owners about any specific challenges then I work on a plan to achieve them.” they may have and if their experience is consistent with their expectations. Look for a Ask the franchisor for franchisee progressive brand satisfaction scores as well. Jim 2 with a vision Westover, VP of Operations for Make sure the franchise brand Yogi Bear’s Jellystone Park you’re considering has a vision for Camp-Resorts, says, “We encourage the future: How does it evaluate its our candidates to read through our position in the marketplace? Does it franchisee satisfaction research. constantly look for new and better Most franchisees will be very ways to serve its customers and gain honest about their business new ones? Think about your personal experience, and the challenges goals and how they align with the they’ve faced and overcome to goals of the organization. FBR’s CEO grow their business.” Eric Stites points out, “When you look at the top-performing franchisees in Seek expert advice any system, it’s not the brand’s vision, Jenny Muller, prior work experience, or specialized 5who owns skills that set them apart, but rather, two Painting With a clear, personalized vision for their a Twist franchises, business and what they want to get says, “Develop out of it.” a working relationship with Make sure the an attorney and franchisor seeks out a CPA who you 3 and values input can trust to guide from its franchisees. you and explain If the brand you’re considering things in a way you is not asking for feedback from can understand.” franchisees on a regular basis, this Seek out expert is a brand to avoid. “Find out if advice on the franchise you are considering financial planning surveys its franchisees,” recommends from someone Victoria Schafer, a TSS Photography knowledgeable franchisee. about funding “TSS Photography is accessible franchise owners, and and willing to help, but also specifically, someone always asking for thoughts and who has expertise in suggestions from franchisees on how incentives and low rates they can improve.” for minorities. Finally,

HOW SATISFIED ARE WOMEN IN FRANCHISING?

Franchise Business Review compiled satisfaction survey data from 6,400 female franchisees representing 300 franchise brands. Here are the overall findings:

• I enjoy operating this business – 90% • I enjoy being part of this organization – 88% • Would recommend my franchise brand to others – 85% • I respect my franchisor – 84% • I believe my franchisor acts with a high level of integrity – 80% • Would “do it again” knowing what I know today – 74%

50 GLOBAL FRANCHISE | ISSUE 4.4 Helen Doron - Founder & CEO ARE YOU PASSIONATE ABOUT EDUCATION? JOIN AN AWARD-WINNING GLOBAL FRANCHISE AND MAKE A DIFFERENCE!

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MORE THAN A BUSINESS. A WAY OF LIFE. ADVICE

Five signs to look for in a Franchisor Franchisees need to vet their franchisors before joining. Here are five things they need to look for in a quality franchisor.

WORDS BY JOSH COHEN

ranchisors and they deliver customer service? If • A thorough franchise franchisees have a you don’t align with their answers, it disclosure document (FDD) F symbiotic relationship won’t be a good fit. with each other. You can’t determine a good fit by Remember that franchise ownership The franchisor provides the only looking at a franchise’s potential is very hands-on, especially during business playbook and supports the for financial success – this doesn’t your first 18-24 months. Even though THE AUTHOR franchisee. The franchisee grows the lead to long-term engagement. you’re joining an existing business, Josh Cohen is CEO franchisor's brand and spreads it into It also doesn’t build the brand, it doesn’t mean they've done of The Junkluggers new markets. When all goes to plan, especially in their local market. everything for you. As the franchisee, www.junk this relationship is a win-win. If they want to create a lasting luggers.com you’re responsible for bringing their But no two franchisors are alike. impression in the minds business model to life in your A franchisor needs to have certain of consumers, brands need to market local market. qualities for this relationship to an experience. A quality mission work. It'll make it easier for you to statement, core values, They make resources establish their national brand in and vision work together to easily available your local market. Here’s what you create this experience. 3 The best franchisors provide should look for in a franchisor before training, technology, and resources signing on the dotted line. They have a reliable to support their franchisees. They business model don’t let them go out on their own. They have a strong 2 Becoming a franchise A company’s resources are more mission, core values, partner lets you immediately lean than just marketing and training 1 and vision on an established business model. manuals. A company’s relationships A great website, a trendy logo, You’re not forced to go through an with vendor partners could also and a cool product or service will extended trial and error process to be viewed as valuable resources only take a company so far. They find out what works — the company for new franchisees. Many existing create a facade with little substance has already done this. They present franchisors have these relationships underneath. It’s not possible for each new franchisee with a company in place so new franchisees don’t a company to survive on these playbook. It's not a secret formula have to establish their own network elements alone. To get to the next to success, but it points them in the — they can utilize existing level, any great company will also right direction. relationships instead. possess a mission, core values, Look at potential franchisors Another valuable resource is the and vision to propel it forward. and dissect both the franchise company’s marketing program. Consumer demand alone can’t disclosure document (FDD) and Franchisees don’t have to create do it. franchise agreement. It should a marketing department from Dig a little deeper than just the include the following: the ground up — they can use the company image when you’re vetting national marketing program of franchisors. Read the company’s • How much the franchisee will an established brand. Oftentimes history and check out their website need to invest franchisees will be required to to get a feel for the brand. Ask • The required process for starting contribute to this program in the yourself: What’s the purpose behind up and operating form of fees. These directly support their business? What qualities do • The type of support and the marketing and advertising they look for in employees? What resources available to collateral available to all franchisees motivates the company? How do the franchisee

52 GLOBAL FRANCHISE | ISSUE 4.4 in the network. Most smaller provides. It starts everyone on an established or emerging franchise, be sure franchises will give their franchisees even playing field. But the most it has an industry presence. Work for a direct access to proven marketing successful franchisees implement company that has a stake in the market, materials and tactics. these tools and resources in and not one that operates in the shadows Franchisees have this advantage their marketplace. of more meaningful brands. over independent businesses. They It’s also easier to work with a company are working under a credible, They have an that has its brand locked down. They recognized name in the industry industry presence know their target audience and how their while small businesses have to carve 4When people hear the word image is perceived by customers. They also out their own place. But franchisees "franchise," they probably attribute know how their image stands up against aren’t totally off the hook: they’re it to fast food chains. McDonalds, competitors in the industry. Franchisees responsible for marketing and Subway, and Pinkberry top the list aren't left wondering how they should market the franchise. They know exactly “To get to the next level, any great how the brand is advertised. They openly communicate company will possess a mission, with their franchisees 5Collaboration is at the core of the core values, and vision to propel franchisor-franchisee relationship. But it forward” there needs to be an open feedback loop for it to work. That way franchisees advertising in their local area. This of the most popular franchises in can voice their opinions, challenges, requires creating a local ad plan and the world. But franchising isn’t and successes. Not only will this using guerilla marketing techniques limited to fast food and fro-yo. A keep the franchisor aware of issues, to make an impact in the region. growing business in virtually any but it will stimulate discussion with Every franchisee has access to industry can franchise. other franchisees. tools and resources the franchisor Whether you choose an When you’re looking at potential franchises, take note of where and when they communicate. Which channels does the franchisor use? When are company meetings? Does the business have a Franchise Advisory Council (FAC)? The right franchisor will have open lines of communication, including one-on-one and group meetings.

Do your research before you commit It’s exciting to become part of a larger brand. You get to use your own experiences and expertise to help a company grow in your local market. But don’t let this excitement blind you from doing your homework ahead of time. Understanding the FDD and franchise agreement are important considerations. You want to understand the amount of investment and requirements on your plate before committing. Otherwise you risk being put in a position where you’re learning this information on the fly. Remember that being a franchisee doesn’t mean going it alone. You’ll need the expertise, support and advice of someone who’s been there before. The road ahead is tough, but it’s easier when someone has your back. Find a franchisor who sees you as their new franchise partner.

GLOBALFRANCHISEMAGAZINE.COM 53 ALL ROADS LEAD TO

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For more information on franchise opportunities: Contact Mark Jameson: [email protected]

INSIGHT

Ignore These Pitfalls At Your Peril You're ready to make that big move overseas. How you make that move can affect not only your business in that new market, but the fate of your brand as a whole. Here's how to avoid six common pifalls

WORDS BY CARL READER

xpanding However, that’s not always the Unfortunately, the reality internationally case. So, if a franchisor is seriously is that most businesses E passes through every entertaining these sorts of offers, that have tried to franchise franchisor’s mind they need to make sure that they into America have at some point. It can be a really go through the following steps, to failed. The US has attractive way to grow your ensure their global plans are set up a fantastic THE AUTHOR business quickly, but there are for success. Carl Reader is many challenges along the way to founder of the be considered. Here's how you can It’s vital to #BeYourOwnBoss avoid the pitfalls of an international identify the movement and 2 chairman of business development plan. initial key markets advisory firm d&t, Any business owner in the which has over 2,500 Make sure that UK – not just franchises but clients in the UK. Carl your expansion is any business owner looking to has been on TV and 1 radio a number of instigated by you expand – should look at their times including BBC Often, it’s a blind approach that can key markets. Who and where News, BBC Radio 1 first turn franchisors’ heads towards are they? With international and BBC Two, talking this path. It can be very flattering to expansion, I tend to see on a wide variety receive an email from a prospective franchisors leaning towards of business-related topics. Carl has investor – almost like a pat on the countries that speak written two books on back for the business they’ve built. English. A very popular starting up a business UK businesses in particular often choice is America, and his new book, receive investment offer approaches, perhaps because Be Your Own Boss, is due to be published often from the GCC or China, which it’s the home of shortly. Carl's third have been made purely on the basis franchising. book will demystify of the prestige associated with the the business world words “Made in the UK”. and encourage An offer can come in from readers to become their own boss anywhere. Perhaps it’s somebody by starting up a in a different continent, or in a city business. www. the recipient enjoys vacationing in. team-dt.com This can make it extra-tempting. However, it’s important to make sure it’s the right move for your business. The franchisor may consider that international expansion would be the perfect growth route for their business.

GLOBALFRANCHISEMAGAZINE.COM 57 ADVICE

ways, it’s the opposite. You need to only on franchise investments, but “The US has a fantastic make sure that, rather than planning also on the investment community for convenience, you plan for nations as a whole. They will know the types franchising industry, and markets suited to your business of industries that are attractive to absolutely overflowing model. You should decide on your investors, and also be able to give a markets based on whether your reasonable opinion of your chances with great brands. This business model will be a success – of success (or otherwise!). not on what language they speak. Once you have the experts makes the US franchise This, in turn, should be based on onboard, it’s essential that you visit the demographics you know, and the region itself, and identify the market incredibly hard research you’ve done – see point 4. main promotional routes you would look to use there. International to penetrate” Make sure you’re consultants will be able to help you 3 prepared from a on a high level, but they will not franchising industry, absolutely UK perspective have the in-depth knowledge of overflowing with great brands. This When you’re looking to branch what works and what doesn’t on makes the US franchise market out overseas, you need to make the ground – and that’s when you incredibly hard to penetrate. sure that you’ve got a suitable head need to get out there. You can look We also need to remember that office to support your overseas at local magazines and recruitment English isn’t always English. While franchisees. It’s important to have websites, and visit exhibitions to the language parallels, the key to this set up before you start planning better understand the way that great marketing is in the nuances any further in detail. Before setting franchising is done in that nation. of communication. After all, there up a master franchise, make sure This is because the way are differences between marketing that you’ve got a strong team in franchising is promoted in each in England and Scotland, for place. They need to be prepared to country is different. Attending example. The local population will work across different time zones. a franchise show in the US is have their own ways of speaking, You need team members who extremely different to attending their own terms, expectations understand the cultural nuances a franchise show in Turkey, for and their own marketing and differences between different example. You need to make sure that phrases that will resonate with cultures, so that they are able to you spend time speaking to other customers. Franchisors are deal with international partners franchisors and get a feel for how often surprised to find that in an appropriate manner. franchising is done in those areas. promotion in a new country They must also understand You can then begin building isn’t as simple as replicating that what works from a business relationships with the professional the way you would promote perspective in the UK doesn’t advisors in both regions, because your business in your home necessarily work overseas. The those who have helped you franchise country. application of legislation is just one in your home state aren’t necessarily While English-speaking example of this. Employment law in the ones who will be able to help you countries are often France (for example) is very different franchise overseas when it comes to considered the “easy to employment law in the UK. the nuts and bolts of actually setting route”, in many it up. If you are a retail or food and Research and plan for beverage franchise for example, 4 your chosen markets what is the property availability like? A great way to fast-track this What are the running costs? What process is to speak to an established are the legal issues etc – these are international consultant who has the things you will need to look into experience of exporting brands to and consider carefully. different nations. Nothing beats your Relating to this, another thing own research, and we’ll go onto that to consider is that your banks, shortly! However, the knowledge of solicitors etc may not necessarily an expert is invaluable. They will have a presence locally. In that case, be able to give their insight not you would need to find local legal

58 GLOBAL FRANCHISE | ISSUE 4.4 and banking advisors so that you well have made early on in your developers to have agreements and can set your master franchise holder franchise journey, such as selling comply with legislation with their up for success. This is of course territories that are far too large, franchisees in their local jurisdiction, something you will revisit once you negotiating deals with franchisees you need to ensure that you have eventually have an area developer or that don’t actually work for the your agreements in a jurisdiction master franchise holder. longer term of the business, and that you are happy and comfortable setting up a negative culture. You with. It should be you dictating the Make sure the deal is need to make sure that you help and terms of how the master franchise 5 equitable for all sides support them. You need to temper agreement should take place, not Once you’ve done the research on their enthusiasm to focus on getting them. This needs to be something the ground, it can be very tempting a return on their investment, and under your control – however, it’s when doing an international deal to help them to develop a franchise also important to balance that with just try and push something under network that is sustainable in their allowing them to apply the relevant the line, so that you can wave that region for the long term. legislation that they have within their flag and say that you’re international. I can’t emphasise enough how nation to their franchisees. However, if you undervalue your important it is that this process is The legislation that applies to franchise at this stage, then the done properly, not only for the success a business relationship between likelihood is that you are not going to of your expansion into this market, two parties may be different in invest in the joint growth of your first but also future ones. Ideally, you want another country. Understanding the region. This in turn could decimate the first nation you enter into to be dynamics of that and how it works your chances of going into other able to be used as an example for any and in particular the implications nations moving forwards. future international sales. of it to you as franchisor is vital. Ensuring an equitable relationship The best way to do that is to take with both a fair investment from Get the legal side sorted some strong legal advice from an the master franchise holder AND 6 Finally, and crucially, it’s accredited solicitor, with experience a fair input of time and efforts and important that you don’t let the tail in international matters. resources from you is essential to wag the dog. While you’ll need to make sure that your international allow your master franchises or area venture is a success. But what does that mean in practice? International expansion isn’t something that you can just chuck money at and expect to just run smoothly. It requires your international development manager or indeed yourself as franchisor to be there and help nurture the area developer or the master franchise holder. This will help them grow into the role of being a regional franchisor, and allows you to avoid predictable – and avoidable – problems. If you leave them to go off under their own steam and set up a franchise themselves, without any real help or support, then the likelihood is that they will make the same mistakes that you may

GLOBALFRANCHISEMAGAZINE.COM 59 BEHIND THE BRAND

AT A GLANCE FASTSIGNS INTERNATIONAL, INC. FASTSIGNS Established: 1985 Number of franchised outlets: Over 700 Location of units: International: U.S., Canada, England, Saudi Arabia, UAE, Grand Cayman, Mexico, Chile, and Australia Investment range: • Cobrand: $84,268 – $209,583 Mastering • Conversion: $95,897 – $212,648 • New center: $197,172 – $313,136 Contact: [email protected] / +1 (888) 285-5935 Global Growth www.fastsigns.com

explained master franchisee Gonzalo With locations now spread across the globe, FASTSIGNS Alcayaga, executive director of FASTSIGNS-Dimacofi Soluciones International is a model of successful expansion Gráficas. “The first thing is to develop FASTSIGNS in the Chilean market and then extend to neighboring ith over 700 opened five centers in Santiago — countries, but we want to go step- independently owned only a year after signing the franchise by-step, learning to do things better.” and operated locations development agreement. W across nine countries, “Such rapid development in a CONTINUED FASTSIGNS International, Inc., is new market is unprecedented for us, DEVELOPMENT truly a master of global growth. The but we’re thrilled with our Chilean WORLDWIDE U.S.-based franchisor has a presence partner’s passion for the brand and FASTSIGNS has signed several in Canada, England, Saudi Arabia, their business acumen that have master franchisee agreements in UAE, Grand Cayman, Mexico, Chile, allowed them to build a strong recent years, including in Spain and Australia (where centers operate presence in the market in such a short where existing FASTSIGNS as SIGNWAVE®). period of time,” said FASTSIGNS franchisee Chris Kirby plans to The brand’s latest explosive CEO Catherine Monson. develop a minimum of 10 locations, growth has occurred in Chile, where The growth strategy in Chile is specifically targeting initial FASTSIGNS’ master franchisee robust. NEOMARK, a family-owned development in Barcelona, business with over 40 Madrid, Valencia, and Malaga, years of experience while new master franchisee manufacturing the Famalco Group will open 16 signs and graphics, centers throughout Malta, Italy, converted its and Greece. existing location to a FASTSIGNS is continuing to grow FASTSIGNS, while worldwide with a focus on finding also opening new master franchisees for Québec, centers, acquiring New Zealand, Brazil, North Africa, another company, Southeast Asia, India, Europe, and Dimacofi, and looking Latin America. toward future growth “For master franchisees, we’re outside of Chile. seeking savvy entrepreneurs that “Although we are a also have a deep understanding family company with of what it takes to grow a brand many years in the in a new country, in addition to graphics industry, we being driven to help businesses in can always be better. their community solve their visual FASTSIGNS showed communications and marketing us that they are able challenges,” said Mark Jameson, to help us strengthen EVP of Franchise Support and our business to take Development, FASTSIGNS Grand Opening of FASTSIGNS of Hartford, CT it to the next level,” International, Inc.

60 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - FASTSIGNS International

In the United States, FASTSIGNS is seeking to develop centers in urban markets such as New York City; Providence, Rhode Island; Boston; Portland, Maine; and Buffalo, New York; while also expanding its co- brand and conversion programs. “FASTSIGNS’ business model is focused on providing custom marketing and graphics solutions for local businesses, so franchisees that operate centers in urban areas are well-positioned to serve the countless organizations right in their backyard,” Jameson added. “Whether a new center, conversion, or co-brand, FASTSIGNS franchisees in these FASTSIGNS location in Santiago, Chile areas continue to experience strong sales and growth.” being named the #1 franchise MODERN, INNOVATIVE opportunity in its category and #95 “FASTSIGNS has always TRAINING overall on Entrepreneur magazine’s remained on the cutting- FASTSIGNS is known in the industry 2019 Franchise 500®. FASTSIGNS for equipping its franchisees with was the only sign, graphics, and edge of its industry, tools vital to securing the ongoing visual communications franchise to success of each individual location. be recognized in the top 100. which has allowed it to In 2018, FASTSIGNS announced In March, Global Franchise develop into a highly the launch of its partnership with named FASTSIGNS the Supreme 1HUDDLE, a workforce-training Champion as part of our Global adaptable company” platform that converts unique Franchise Awards 2019 and, training content into science- in June, Forbes recognized to meet a growing demand for eye- backed, quick-burst training FASTSIGNS as one of America’s catching graphics and marketing games that are proven to accelerate Best Franchises to Buy in 2019. through franchising. workforce productivity. FASTSIGNS also made FASTSIGNS has always remained FASTSIGNS currently has about Franchise Direct’s list of the Top on the cutting-edge of its industry, 30 games in its system that each last 100 Franchises 2019 and ranked which has allowed it to develop into 2-3 minutes, from understanding the #2 on this year’s Franchise Gator a highly adaptable company that company’s brand positioning to sales Top 100 list. In addition it was the provides visual marketing solutions tactics and products. In an interview Franchisees’ Choice Designation that meet the ever-evolving needs last year with Sign Builder Illustrated, for the seventh consecutive year of its franchisees and clients. But Monson emphasized the importance by the Canadian Franchise beyond its success in its segment, of adapting the brand’s training to a Association for its strong FASTSIGNS is on the cutting-edge new generation of franchisees relationship with Canadian of franchising, constantly evaluating and employees. franchisees, as well as extensive how it can better support franchisees “A majority of our franchisees franchisee training and support. through technology, training, are younger. Finding a way to get marketing, and more. information and training to them in ON THE a faster, more efficient way is critical CUTTING EDGE FASTSIGNS team with master for us and gamification is an effective As a growing $29 franchisee from Santiago, Chile way to achieve that” Monson said. “It billion industry, signage helps reinforce traditional online or and graphics will be video training, with the added benefit in demand as long as of making it fun, competitive and businesses need to be more digestible, without taking up seen. FASTSIGNS will be too much time during the workday. there to create captivating, On average, each 1HUDDLE game high-performing visuals takes less than three minutes to for businesses around complete. It’s fast, efficient and leads the world — and its to information retention.” franchisees are a part of it. FASTSIGNS offers AWARDS & RECOGNITION entrepreneurs and FASTSIGNS has already received current business several awards in 2019, including owners an opportunity

GLOBALFRANCHISEMAGAZINE.COM 61 ADVICE

10 British brands finding success overseas Think there's a lack of UK-founded franchises that have successfully gone global? Think again, as we select a crop of British concepts that have been well received internationally

FILTA GROUP RAZZAMATAZ

FILTA GROUP children’s theatre school concept "Suitable master Filta currently operates in over 13 global. The brand’s franchise team franchisors and area countries, and boasts a whopping states that after decades’ worth of 350 owners. Most well-known of refining the brand’s expert training, developers will be its brands is FiltaFry, a franchise business systems, and support, suitable able to replicate its providing an on-site fryer master franchisors and area developers popularity in other management service which includes will be able to replicate its popularity temperature calibration, oil micro- in other regions with aplomb. regions with aplomb” filtration and a thorough vacuum- Founded in 2000 by Denise based detail cleaning of each fryer. Hutton-Gosney, Razzamataz Theatre STAGECOACH The cleaning and maintenance Schools was created with a simple With over 300 franchisees operating of commercial fryers can be a dream: to make performing arts over 1,800 schools and programmes dangerous task for employees, so available to all young people no matter in eight countries, Stagecoach FiltaFry eliminates the risks by their background or circumstances. Performing Arts is on a mission proving a quick, safe, clean and Thanks to successful partnerships with to become the go-to name in child cost-effective service. international holiday operators, the enrichment franchising in the world. The Filta Group currently Razzamataz brand has already been Last year was an especially operates in many countries by introduced in Mexico, Dominican successful one for the brand, providing international master Republic, Cyprus, Greece, Egypt, celebrating its 30th birthday, as well licenses, which allows a Master Tunisia, Spain, Canary Island, Balearic as welcoming five new owners to its License Holder the right to operate Islands, Portugal and France. now 26-strong international family. the Filta business – under the “When I started out, I could never Stagecoach is now looking for master Filta brand – in their local market. have imagine that my business franchisees to continue its expansion The Filta team boasts a wealth of would be working with household into Northern Europe, USA, India, information and proven franchise names such as Disney, Universal China, Singapore, Hong Kong and systems which can translate to any Pictures, Warner Bros. and 20th the Middle East. local or specialised market. Century Fox, to name but a few,” “International student numbers Denise tells Global Franchise. “But grew in every country, and overall by RAZZAMATAZ I think what makes me really proud 19.4 per cent in 2018,” says Andrew After 20 successful years of growth is to see the accomplishments of Walters, Director of International and development in the UK, our franchisees, who are succeeding Business Development. “Outside of Razzamataz has taken its popular beyond our own forecasts.” the UK, we opened 20 new schools

62 GLOBAL FRANCHISE | ISSUE 4.4 across four countries and franchisees' With over 650 franchisees recipe to the brand’s successful revenue increased by over 10 per cent operating all over the world, overseas expansion, Wither states, in one year. While we're pleased with chairman and founder, Fred “We have a quality product that can be these financial and operational gains, Marfleet, is encouraged by what made with easily-accessible, locally- the fact that during the same period the business has achieved in over sourced ingredients, and is affordable. franchisee satisfaction increased 25 years. “Our vision is to continue We are able to offer opportunities to globally from 71 to 77 per cent is unlocking potential and that applies franchisees at a low initial investment, perhaps even more compelling.” equally to our franchise partners, which allows individual entrepreneurs As the brand continues to clients and employees,” he explains. to introduce Southern Fried Chicken increase its profile and profits “By remaining humble, honest, and into smaller towns and expand their worldwide, more than 400 striving to put our clients’ needs business into a chain of restaurants. global franchise enquires have first, we foster our business and Maintaining a great relationship with led to the strongest pipeline of achieve our mission. I am proud of our franchises has certainly been a new incoming international what we have achieved so far, and contributor to our success and we are franchisees in Stagecoach's I am incredibly excited about the committed to working hard to ensure history. Watch this space. future ahead.” this continues and improves.”

STAGECOACH EXPENSE REDUCTION ANALYSIS SOUTHERN FRIED CHICKEN

"Stagecoach is now SOUTHERN FRIED "Maintaining a great relationship with looking for master CHICKEN our franchises has certainly been a A British twist on an American contributor to our success and we are franchisees to continue its classic has proved a long-running expansion into Northern international success for Southern committed to working hard to ensure Europe, USA, India, China, Fried Chicken. With over 47 years’ this continues and improves” experience, the popular food and Singapore, Hong Kong beverage brand has refined the way KARE PLUS and the Middle East” it operates its business, through Healthcare provider Kare Plus is a improved techniques to implement a global franchise well-known for its EXPENSE REDUCTION globally recognised franchise system consistent and high-quality care and ANALYSTS - this has all helped it to boast over support services across a number With continuous and unerring support 500 franchise outlets to its name. As a of residential establishments, from the franchisor and an experienced, result, Southern Fried Chicken’s team including large private hospitals, highly specialised global network, is repeatedly told by its emphatic local councils and also to private Expense Reduction Analysts (ERA) customer base that its fried chicken clients, predominantly providing franchisees are given every opportunity is the best they’ve ever tasted. homecare services to customers in to succeed and build a future for “Our most successful regions their own homes. themselves and their families. are Eastern Europe, Africa, and The business is currently offering A multiple Global Franchise the Middle East,” says Andrew many exciting opportunities outside Awards winner, ERA has a Withers, chairman of FFS brands, of the United Kingdom. With 90-plus worldwide reputation for helping the parent company of Southern franchise territories that are established CFOs and financial leaders across Fried Chicken. “Countries with a less as a proven concept that works, every the globe as they look to combat the developed quick-service industry franchisee is given access to Kare Plus’ rising costs of operating in today’s have a high demand and need for infrastructure advice, comprehensive economy. ERA franchisees combine a professionally-run restaurant training and support, business their experience with the expertise that helps control the quality of planning advice, bespoke IT systems of an international network to the product and the experience and marketing. generate process improvements and customers have. Our years in the Available territories currently include offer tangible savings in a variety of industry and access to our resources Singapore, China, Japan, Hong Kong, different industries and areas of cost proves invaluable in these areas.” India, South Korea, Australia and for their clients. When pressed on the secret New Zealand. Master franchisees own

GLOBALFRANCHISEMAGAZINE.COM 63 ADVICE

a country or development area franchise’s fastest-growing territory, GDK is a fast-casual brand that and operate them directly. These attracting 1,000 clients within its provides food of consistent high franchisees purchase a right to operate first year. quality and value and a great Kare Plus and to sell on sub-franchises, Since then, Water Babies has experience at stunningly fitted- providing a national or regional expanded into the Netherlands, out stores where you can sit down headquarters and support office. Canada, New Zealand and China, and, thanks to the grill platform with plans to open in Germany. and doner preparation areas being EASYGYM With weekly enquiries received visible to the consumer, watch Formed in 2010, easyGym from all over the world, the Water your doner being prepared. This is part of easyGroup, which Babies franchise team believes that makes GDK franchises stand includes brands such as easyJet, it has a business model that works out: as most kebab outlets cater easyHotel, easyStorage, and wherever you are. primarily for takeaway meals, the easyCoffee. It currently has gyms Alongside its ambitious expansion GDK team states that customers open and in operation in the UK, plans – with the Middle East the are split 60/40 between sit-down France and Kenya. next region it wishes to launch and takeout.

KAREPLUS EASYGYM WATER BABIES GERMAN DONER KEBAB INXPRESS

easyGym offers flexible, low-cost into – Water Babies has developed "GDK currently has gym memberships to individuals. additional revenue streams through over 60 franchises There are no contracts to sign up the sale of related products, such as to or extra charges for the group bath toys, towels and swimwear, and worldwide, with over training classes on offer. Instead, its stunning underwater photography 600 stores due to near-100,000 UK members choose of its customers’ little swimmers. either a monthly package or a day open under multi-site pass, which don’t require payment GERMAN DONER operator agreements or a joining fee. KEBAB over the next year” In fact, over 40 per cent of its Scotland-headquartered franchise members have never used a gym German Doner Kebab (GDK) before, which according to easyGym, is a fast-food brand that has INXPRESS proves it’s a “market grower by taken Europe and the Middle InXpress is franchisor of opening the gym sector up to new East by storm with its healthy, worldwide express parcel delivery members for this first time”. nutritionally-balanced approach and transportation services. easyGym states that it has to the traditional kebab. With The business leverages global consumer recognition of 98 per cent branches found in the UK, Oman, agreements with renowned in the UK, and over 90 per cent in Bahrain, United Arab Emirates, carriers to secure preferential the rest of Europe. The company has Sweden, and USA, with Canada rates and provides international a flagship club on London’s Oxford earmarked to open soon, the express, domestic express, freight Street and 16 clubs in total across bold global aspirations of the and mail services. the UK, including Birmingham, brand has impressed many in the Established in 1999, the Liverpool, Bradford, and Cardiff. It franchise industry. InXpress business model has been launched its franchise proposition GDK currently has over 60 delivering profits for its franchise in the UK in 2017 after investing franchises worldwide, with over 600 owners to almost 20 years. £25m developing and refining the stores due to open under multi- The franchise currently business model. site operator agreements over the operates in 14 countries, including next year. This means that master Australia, UK, USA, Canada, WATER BABIES franchise, area representative Hong Kong, New Zealand, Launched in 2002, Water Babies and multi-store development South Africa, Germany, France, teaches around 45,000 children in opportunities available through Morocco, The Netherlands, almost 600 pools through 56 UK the EU, MENA PAK, Asia, Canada, Vietnam, Korea, and India. franchises. Its first overseas move USA and beyond. InXpress has no specific master was to Ireland, launching in Dublin The key reason why the brand is franchise opportunities currently, in 2009. It went on to become the enjoying such roaring popularity? but welcomes enquiries.

64 GLOBAL FRANCHISE | ISSUE 4.4 +

5 minutes with... MARC MUSHKIN

We catch up with the vice president of international sales for Carl's Jr.

During the 1990s, Marc Mushkin our global teams in keeping satisfying part of my work comes was known in El Torito Restaurants, our agreements up to date and over time seeing franchisees a California-based Mexican contributing to market planning and successfully build businesses that restaurant chain, as an avid traveler, restaurant development. last into the future. a polyglot and a manager with experience in many sides of the GF: What's your secret for successful GF: What aspect of your work restaurant business, although none international franchising? offers the greatest challenges? in franchising. So when his company MM: Making the deals is all about MM: Adapting to myriad business acquired another brand and moved building personal relationships, and negotiating cultures around their international franchise listening and trying to build bridges the world is the greatest challenge operations director to run that new across cultural and language divides. I I’ve faced. No matter how many company, the first person senior try to see things from the point of view years one has in this role, there management thought of to take over of the candidates, crafting each deal are always twists and turns that that role was Mr. Mushkin. Within a to work in the particular country or come up. One challenge that week of being offered the position in region being considered, then building comes up frequently is the way 1998, Mr. Mushkin was on a plane to the business. International franchising many international companies Tokyo and then on to Abu Dhabi and requires great balance and mature keep their owners and decision Istanbul. Taking over development makers behind the scenes, having a year later, he hasn’t stopped flying lower level personnel represent since. themselves as authorities within “No matter how many negotiations. This can cause real GF: What attracted you to the food problems when the actual decision & beverage side of franchising? years one has in this role, makers come into negotiations late MM: All the way back to my night in the process. shifts making “runzas*” while there are always twists studying at the University of GF: How do you think other Nebraska. I’ve never stopped loving and turns that come up” people would describe you? the restaurant business. (*Runzas MM: Respectful, patient and are a regional Nebraska fast food judgement: protecting the brand while persistent. I hope. specialty, a bit like hand-held understanding what adaptions are pierogis but bigger!) Even in high critical to fit in each market. GF: What's the next step in school I worked in restaurants. your career? GF: What affords you most MM: As I become a senior leader GF: What does your role with satisfaction about your work? in the field, working on bigger, Carl's Jr entail? MM: There are two answers to that more complicated deals is very MM: I’m responsible for new question: first, the satisfaction of gratifying. I’m learning about franchise recruiting, qualification reaching agreement and signing a different business formats besides and onboarding globally for deal in a new international market traditional franchising, and this Carl’s Jr. Additionally, I support is wonderful, but second, the most phase of my career is fascinating.

GLOBALFRANCHISEMAGAZINE.COM 65 INSIGHT

Let's Work Together To achieve success that lasts, your sales people must work as a team, says Jeff Todd, Director of Meineke Resale

WORDS BY JEFF TODD

month of stratospheric you’re not going to hit it by the end basis, and increase focus on those sales numbers is an of the year. February will always be a inactive leads through geo-targeted A incredible achievement more difficult month because many digital advertising or increased for a sales person. But deals close at the end of December/ content marketing, or any additional the ability to transform one-time beginning of January due to tax tactics that might pique the interest sales numbers into a long-term implications. Some of these trends of leads that have previously gone THE AUTHOR trend, and better yet, consistent bear out year over year, depending on cold. Keep organized, and make sure Jeff Todd is the year-over-year growth, is the key to the industry. Anticipating the natural you’ve set yourself and your team up to group director of a successful franchise sales team. rhythms of the sales cycle can help mine leads effectively and keep them the Meineke resale Every team wants consistent, prepare your team to strategize and engaged, and to reach out to them in program at Driven Brands. Meineke Car predictable sales numbers, but it’s course-correct throughout the year. the future during slower periods. Care Centers, Inc. is not always going to be the reality. a division of Driven Instead, your team can develop Build relationships Buy your way out Brands, Inc., the strategies with consistency as to build sales (but don’t make a leading automotive the goal, rather than incremental How we do business in aftermarket franchisor 2 4 habit of it) in the world. meineke. high totals. Establishing this franchising is based on relationships. This is not a viable tactic for every com/franchise-oppor- infrastructure for consistency will I would encourage sales teams to see sales team, and it is definitely not a tunities/resales allow you to predict and adapt themselves as relationship managers, sustainable long-term strategy for each month to even out sales not just transactions managers. I any team. Nevertheless, a short- throughout the year. coach my team to sell our franchise term budget infusion can rejuvenate opportunity by making sure we are marketing tactics. One way to working together to nurture every prepare for this method is to keep “nothing should be relationship with franchise candidates, a reserve of cash expressly for this more important to your from first contact through signing purpose, in case the need arises. the first deal. With franchisees, our This reserve can cover tactics such team than hitting it hard team builds positive, supportive as in-market relationships from the beginning, discovery to meet and surpass so they want to grow and we can days to meet depend on them to expand within our candidates sales numbers every system. While the feasibility varies by face-to-face, franchisor, I recommend whenever additional single month" possible that a sales team stays in contact with franchise owners from Respect the realities start to finish. As a result, we often see of the calendar our existing owners grow more. 1 Look back at your transactions year over year, and over several years, Don’t be afraid to and honestly analyze what you see. resurrect “dead” Look at where you needed to spend 3 leads the money in the past, and when it When sales slow down, remember was too late to recover. For example, if to look to resources that already you’re behind on your targets, there’s exist – your old, or “dead” leads. Work less benefit to spend that money in through your lead list on a November and December. If you’re market-specific not on track to hit your budget or a little ahead by October,

66 GLOBAL FRANCHISE | ISSUE 4.4 email blasts or expanded social Start every month Play the long game media advertising or digital at zero Keep your eye on growing existing targeting. Doubling down on your 6 After an exceptionally strong 7 franchisees’ footprint and maintain budget for a limited time can month, it can be tempting for some those relationships with that eventual certainly give a shock to the system sales teams to want to coast on that growth in mind. Even owners who do not and assist sales numbers in leveling success in the weeks and months initially plan to grow beyond a single unit back out. Once you’re out of the ahead. However, looking backward may one day lead to broader growth if hole, you need to plan to balance out can prevent a team from maintaining you’ve worked to keep that door open and the rest of the budget through the the type of consistent growth that a positive relationship with the franchisee. remainder of the year. leads to steady growth over a year Stay engaged with your prospects, even or several years, rather than a few when things are slow. If a candidate is Win as a team exemplary months. To that end, your serious and your team slacks off because At the end of the day, to team needs to start every month of a short-term slump, the window of 5 succeed in sales you need to at zero. It doesn’t matter how well opportunity can want to win. A competitive streak you did last month or week. Some close in an instant helps turn a strong team into the people get cocky when they get a strongest sales team. I feel what sets commission check, but nothing my own team apart, however, is that should be more important to your while we want to win, we’ve built a team than hitting it hard to meet culture of winning that’s based on and surpass sales numbers every the team as a whole. Everybody’s single month. expected to help everyone else out. Many sales people have the reputation of being lone wolves – they don’t care about the team or the company, they’re in it for their own personal success. But in the long term, if one team member is only working for money they won’t last. A good team works together, tag-teams and passes knowledge around. We view our team as a unit, and that cohesion is one of the key tools to a consistent approach to sales month over month and year over year.

SEVEN WAYS TO MAINTAIN SALES CONSISTENCY YEAR-ROUND

1. Respect the realities of the sales calendar 2. Build relationships to build sales 3. Don’t be afraid to resurrect “dead” leads 4. But your way out (but don’t make a habit of it) 5. Win as a team 6. Start every month at zero 7. Play the long game

GLOBALFRANCHISEMAGAZINE.COM 67 INSIGHT

7 golden rules for overseeing an international franchise Taking your first steps towards global domination? Here's a vital checklist of initial considerations

WORDS BY LAUREN MCKINNIE

THE AUTHOR nce your franchise has about what this business venture will taking your business global, you Lauren McKinnie is a succeeded across the entail. The following tips will need the right people as well as contributing writer country, it may be only should set you up for success if the right amount of capital. If your and media associate O a matter of time before for East Coast Wings you are contemplating an franchise is lacking in even one area, Franchise. She you begin to consider an international international franchise: it is best to hold off on expansion until regularly writes expansion. The appeal of doing so is the issue is resolved. content for a variety understandable. If you feel as though Be prepared of business and your business has grown as much as it Chances are that you’re already franchise blogs. Locate the can in your current base of operations, 1 looking into international right market looking abroad for more opportunities prospects if expansion is on your 2 Assuming that you have already makes sense. Also, depending on the mind. For this reason, you may be examined the status of your business country you choose as the more inclined to jump right into closely and determined that the time is next location for your business, the international market without right for expansion, the next step of the you could end up on the receiving researching all aspects of a global process involves finding the best market end of larger profit margins thanks to expansion thoroughly. for your business. If your business is friendlier regulations and taxes. However, the last thing you want in high demand at the moment, you Before deciding to expand your to do is commit to an international may not have to search very hard for a franchise internationally, it is expansion without first knowing how location. Franchise-seekers may very best to take some time to learn more it will affect your business. Before well come to you.

68 GLOBAL FRANCHISE | ISSUE 4.4 However, it is important not to sign location. These are two absolutely not! Choosing a franchisee is a similar off on an international franchise after crucial qualities to keep in mind process and if you want the relationship only discovering the right location for when choosing a franchisee. Your to last you need to be picky about who your business. Look more in-depth partner must not only focus on you recruit. Not everyone is suitable at the potential location first and see succeeding at a local level, but on and not every franchise relationship will which local competitors are nearby. a global scale as well. In order to work. It is essential to understand exactly Make sure that your franchise can find your ideal franchisees, you who your ideal franchisee is in exactly compete with the businesses that will probably have to look through the same way you would understand are already established near your numerous applications. However, who your ideal clients are. If you are potential location. selecting the right franchisees happy for absolutely anyone to buy your You might also consider using social for your business is essential for franchise then you are in for a lot of soul- media as a resource for learning more establishing a profitable destroying trouble. Play the long game, about the area. While it’s not the most international franchise. play to win, play to keep your franchisees scientific way to gauge interest, you around for life as they will become your may still find out beneficial information templates and close family who will about local interest in your business “Maintain your attract more of the same. through social media channels. Starting a separate social media page for your core offerings Provide continuing business that specifically targets likely support customers is one way to utilize social when moving to 6Once your new location is opened, media in the expansion process. It’s also the work does not end there. In order for not a bad idea to make the trip to the a new market your business expansion to be successful, location yourself so that you can get a as these will it is necessary that you provide ample better feel for the environment and the support to your new franchisees. Take surrounding competition. be the initial time to mentor your new franchisees and provide them with more insight into your Find the right impressions of business’ purpose and mission. Open a franchisees line of communication with them and 3 The next step to take your business encourage them to reach out to you if they when researching an international need any guidance. Their success is your franchise expansion is finding to the new success. For this reason you should fully international partners for your location” commit to helping them establish their business. This part of the process respective franchise locations. will likely prove challenging. Ideally, whomever you partner with will be Seek expert advice Prepare for growth skilled in business and have extensive The idea of taking your Although you may think it is experience within the franchise’s new 4 business global can be 7 too early to plan for your new overwhelming. If you are not international franchise’s success, being familiar with the process, seeking overprepared is much better than being expert advice can make it much caught off-guard by your business easier on yourself. It is also a suddenly booming. Establish a system good idea to consult an attorney to better coordinate between your to ensure that you are following national and international franchise the franchising steps correctly. locations. You should also ensure that Additionally, your attorney will your deliveries are arriving at their help you draft the right type of intended locations on time. Make sure paperwork for your applicants to keep track of your growing inventory to sign. as well. This may be done by hiring Business owners may also additional employees or by opening up think about checking with the new working sites. International Franchise Association Craft a grand business plan so that and reading popular franchise your money has a designated purpose magazines and other resources so once your international franchise that they can better understand the begins to thrive. Stick to a strict process that will soon take place. budget in order to adequately fund the www.globalfranchisemagazine.com continued expansion and development of new franchise locations. Although Customize carefully there are many steps to take when I can’t help but continue planning an international franchise 5 with the marriage analogy expansion, the above tips should because you wouldn’t marry just provide you with an advantage that will anyone, would you? Well, I hope help your business thrive.

GLOBALFRANCHISEMAGAZINE.COM 69 ADVICE

Slow-Cooking Success

Slow growth is often the key to franchising success, says Matt Ross

WORDS BY MATT ROSS

THE AUTHOR n our world of profits Whether you’re starting a franchise business model. And, we needed For 20 years, Matt and losses, stock prices or buying franchise locations, you a consumer experience that was Ross was an executive monitored by the want not only to pick the most different, really fun and produced in the radio industry, I before becoming second, and businesses satisfying meal, but the recipe that compelling outcomes. an investor and the covered like sports teams in a 24/7 delivers the best results. When founding CEO for the media marketplace, there we decided to start an art school Get it right the first time School of Rock. In is something to be said about franchise, we heavily researched the Don’t mistake this piece of advice five years, Matt grew that franchise from taking it slow. The fable of the idea. Because I was the founding for 'Get it Right Immediately.' five locations to 55 tortoise and hare contains an CEO of the School of Rock, I had Quite the opposite. The long- schools – the largest important message for franchising experience with creative education, term success of any franchise of music schools in – if you take time to be meticulous but art is very different to music. depends on a solid foundation. the world. In 2012, he in your preparation, you can Clearly there was a need in the That foundation is not built in a opened the first One River School of Art + come out a winner. market place, since art education day, and not often for years. We Design in Englewood, in schools is often missing or started One River in 2010, and NJ. He franchised Concept is king incomplete, and a significant didn’t open the first location for the concept in 2017 At a simple level, starting a franchise percentage of children are pushed two years. To say nothing of raising and currently has 10 locations, with up to is like choosing what to serve for towards organized sports capital and courting investors, we five more expected dinner. You ask yourself a million who are better suited to had to take that first step – because to open this year. For questions to arrive at the final learn about and create concept is king – and more information go decision: What would people like art. But beyond supply- make it a viable business to oneriverschool. to eat? Do I have the necessary and-demand issues, model. Research, com/franchise. ingredients? How should I prepare we needed to write networking, the meal (or can I ask someone else the recipe for a business plans, to take on that responsibility?) What profitable developing time will we eat? Will everyone be sick of a standard go-to dish? What have we eaten most recently? Should I try a new recipe? If so, who has the best recipe? How long will it take and do I have the time (and patience) to pull it off?

70 GLOBAL FRANCHISE | ISSUE 4.4 proprietary curriculum and needs to fit that persona, so beyond be equally comfortable with the thousands of other elements were experience and capital, is this initial direction and performance required not only to open the first franchisee in line with the company of an inaugural franchise location. doors, but to enjoy success well values, does he or she understand Long-term success is the goal and beyond that date. the goals, realities and personality a poorly-performing (or ill-fitting) We tweaked everything about of the company? franchisee can harm a brand that business, using trial-and-error Having ambitious growth plans irreparably if not aligned properly as our guide, for five full years can often interfere with making with it. before we were comfortable with the correct decisions about the Whether you’re starting the notion of expanding. Getting it stewards of the brand. Carefully vet the franchise from scratch or right the first time sounds simple, but it’s often a tedious, torturous process. Attention to detail, “Attention to detail, learning learning from your mistakes and your wins, and assembling a top- from your mistakes and your tier team to achieve the best results wins, and assembling a top- takes time, as it should. If you rush any aspect of achieving success – tier team to achieve the best despite pressure from yourself, your investors, or anyone else – results takes time” you will be cutting the lifespan of your business. each candidate, particularly if they purchasing locations, it’s critical seek to open multiple locations. that you largely ignore your desire Brand personality Do not be afraid to decline an for speed. Think about that dinner. Too many business people have interested prospect if you have If you do all your work up front – grandiose ideas about rapid growth. doubts about the fit. chop the onions before breakfast, Whether it’s opening 100 units in brown the meat at sunrise – and your first 18 months or setting an Don't run before you let it cook slowly throughout the ambitious level for someone to buy can walk day, everything will taste better at a franchise, too many franchises In very few circumstances it is the end of the day. Everyone will envision the best-case scenario as advisable for a franchisee to open enjoy the meal, you’ll have been their goal out of the gate. multiple locations quickly. Much successful, and your stress levels The truth is, every concept has like building the franchise itself, will be demonstrably lower. a brand personality. Beyond the a multi-unit owner should perfect messaging your public relations the first location before expanding team sends to the marketplace, the the business. This process doesn’t company itself has a persona. Each have to take years to achieve, but viable prospect the franchise and franchisee should

GLOBALFRANCHISEMAGAZINE.COM 71 exposure Expos, events and happenings in franchising UPCOMING EXPOS

HOW DANGEROUS IS BOGOTA? The city bears small resemblance to its COLUMBIA portrayal on screen. Violent crime and kidnappings are rare and tend to happen WHAT: INTERNATIONAL in outlying districts. Kidnappings have BUSINESS AND dropped 92% over the past 20 years. FRANCHISE FAIR WHEN: 3-4 JULY 2019 WHILE IN BOGATA.... WHERE: CORFERIAS, Stroll through La Candelaria, Bogata’s BOGATA, COLUMBIA bohemian Spanish colonial district. It’s colorful, historic and a center for INDONESIA museums and restaurants. WHAT? INTERNATIONAL The International Business and FRANCHISE, LICENSE AND Ride a funicular train or cable car to Franchise Fair is a two day annual event BUSINESS CONCEPT EXPO & the top of Mount Monserrate. 3,000m held from 3-4 July 2019 at Corferias CONFERENCE (IFRA) above sea level, it’s been a pilgrim in Bogota, Colombia and is designed WHERE? JAKARTA CONVENTION destination since the early 1600’s. Views for franchises, expanding businesses WHEN? 5-7 JULY and entrepreneurship in Colombia. It’s are panoramic. a small fair but one that contributes Visit a gold museum. The Museo Del significantly to the development of the Oro displays spectacular examples of country’s franchise industry. Up to 1,000 pre-Hispanic art among its 55,000 INDIA visitors and between 20 - 100 exhibitors golden artefacts. WHAT? INTERNATIONAL are expected. Jardín Botánico de Bogotá are FRANCHISE & BUSINESS botanical gardens offering a tranquil OPPORTUNITIES SHOW STAY AT Holiday Inn (4m) Carrera oasis in which you can admire some WHERE? CHENNAI TRADE 7 N. 67-39, Bogota,110231 Colombia 13,000 species of plants including the CENTRE, CHENNAI, INDIA Reservations 0800 02 85 880 gadens’ renowned orchids WHEN? SUN, 07 JUL 2019

REVIEW: International Franchise Expo IFE 2019 AT JAVITT’S CENTER IN NEW YORK WENT DOWN A STORM

Visitors from 49 states brand internationally. It’s been very busy, busier and 116 countries explored IFE featured 49 official than a lot of shows we’ve 400 franchise brands delegations (16 escorted & done in recent memory. and participated in a 33 unescorted) People from all over are comprehensive conference attending. Jeff Lockwood, program (for international EXHIBITORS SAID: Little Caesars visitors the IFE is the only We’ve seen entrepreneurs place to meet successful coming to our booth FUN FACT franchise brands from the US from Brazil, Argentina, IFE staff averaged walking and from countries all over South Africa, Taiwan, 7.5 miles per day while on the world). Many exhibitors Korea, China – you name show site. “Comfortable were also seeking master it, they have been here! shoes are important but so franchise license agreements Diana Moore, Chocolate are supportive ones!” said to strategically grow their Moonshine Co. organiser John Erich

72 GLOBALFRANCHISE | ISSUE 4.4 ADVICE

Discover Thai Franchising You'll need to hurry to catch the Thailand Franchise & Business Opportunities show, but this exiting expo promises to repay your effort

What's So Exciting About “Thailand has more than 100 Thai Franchising? Today, Thailand has the largest franchisors, with over 10,000 outlets” number of international brands in ASEAN. The country has more than show will include four national Key conference sessions that you 100 franchisors at present, with over pavilions, from Korea, Malaysia, should not miss at TFBO 2019 10,000 outlets. As a major gateway Taiwan and USA. In 2019, organisers include the newly-launched to ASEAN, Thailand Franchise & expect to see over 25,000 visitors TFBO International Franchise Business Opportunities (TFBO 2019) from 50 countries around the world. Conference held by the world’s is the BEST platform for international At TFBO you will meet with leading Franchise advisory service, franchisors wishing to expand their leading brands such as Bake a Wish, World Franchise Associates. business and meet face-to-face with Doi Chaang, Jeffer Steak, Sbarro, proven franchise opportunities in Dickeys BBQ, Little Caesars and Topics for discussion? Thailand and ASEAN. many more! • Franchise 101 for Beginners New innovations, new features • Are You Ready to Franchise? When is it and where? and more exhibitors has been added • Franchise Recruitment Thailand Franchise & Business to the event in 2019 to help aid with • Important Considerations for Opportunities (TFBO) returns this the growing demand for franchise International Expansion July from 11-14 2019 at EH 104 knowledge in the region. • Opportunities in Asia and BITEC for its 15th edition. Middle East Any special features? • Importance of Technology & How important in • Franchise Business Talk: Innovation in Franchising this show? sharing and speaking sessions TFBO is regarded as the biggest B2B by industry experts TFBO 2019 is co-located with platform and the key driver for the • Franchise Consultancy Forum: Thailand Retail, Food & Hospitality growth of the Franchise industry providing solutions for franchisees Services (TRAFS) and ASEAN in South East Asia, and especially • Business Matching & Partnering Retail Show, the leading platform in Thailand. In 2018, TFBO Program: pre-scheduled for Restaurant, Food, Hotel, introduced over 200 exhibitors meetings with the potential Hospitality and Retail Industry. from 14 countries who showcased buyers + franchisors new franchises and welcomed over • Food Truck Franchise Zone: How do I register? 23,000 visitors from 44 countries. opening a food franchise TFBO 2019 is now open for With the success of the 2018 show, • TFBO Franchise Award: pre registration at tfbo2019. this year TFBO is ready to welcome promoting successful and reliable bcis.asia and make sure to use an expected 200+ companies. The franchise business in Asia code"TFB101" to register.

GLOBALFRANCHISEMAGAZINE.COM 73 BEHIND THE BRAND

AT A GLANCE Join us in HELEN DORON EDUCATIONAL GROUP

Established: educating 1985 Number of franchised outlets: over 1,000 Location of units: Albania, Austria, Bosnia and Herzogovinia, the world! Bulgaria, Chile, China, Croatia, Cyprus, Czech Republic, Ecuador, Estonia, France, Germany, Hungary, Israel, Italy, Kazakhstan, Lichtenstein, Macedonia, Mexico, Montenegro, Peru, Poland, Portugal, Romania, Russia, San Marino, Passionate about children’s education? Want to work Serbia, Slovakia, Slovenia, South Korea, Spain, Switzerland, Thailand, Turkey, with Europe’s leading ESL/EFL organization? We are Ukraine and Vietnam Investment range: looking for Master Franchisees worldwide! €150,000-250,000 Minimum required capital: €200,000 Contact: he Helen Doron the company’s flagship franchise, [email protected] Educational Group Helen Doron English, along www.helendorongroup.com T provides outstanding with Helen Doron Kindergarten, educational franchise MathRiders, and Ready, Steady, business opportunities for qualified Move franchises. MORE THAN A BUSINESS. entrepreneurs and prospective Helen Doron Educational A WAY OF LIFE. franchise partners. Helen Doron’s Group encompasses more than Franchising with Helen Doron innovative and proven methodology 1,000 learning centres in 37 is more than joining a successful is the creative inspiration behind countries worldwide. organization with a proven and

74 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - Helen Doron

highly profitable business model. It methodology is based on key is about becoming part of a global principles: positive reinforcement, community committed to educating fun, small group learning and the next generation (from ages 3 repeated hearing. Helen Doron months up to 19 years), equipping makes language learning natural them with the skills needed to and develops children’s creativity compete in the global marketplace. and communication skills.

Franchising with MathRiders “Our professional The MathRiders programme for students 4-18 is designed to help team provides students learn maths without fear, manage a unique business, with the improving their mathematical skills support and backing of a globally- you with ongoing through fun and creative lessons. recognized educational company. training and Master Franchisees are able to tailor the programme to meet the LEVERAGING support — regulations of their own country. TECHNOLOGY TO As a MathRiders franchisee, you TEACH ENGLISH from start- can grow an exciting business Helen Doron Group continuously while providing an educational develops games and apps that up assistance headstart to children in your area. supplement the classroom materials to ongoing The MathRiders franchise provides and enable children to continue you with outstanding educational learning at home, in their own marketing, sales, programmes and the training and time. A 24/7 easy English radio support to launch your success. station (teenbuzz.co) is a major organizational, draw for teens and tweens wishing Helen Doron Kindergarten to improve their language skills in a administrative Our kindergartens provide a one- fun atmosphere. and pedagogic of-a-kind environment, catering to children from 2½ upwards, More than three million children training” offering optimal stimulation and worldwide have benefited from development for young minds and learning with the Helen Doron bodies. The unique and carefully- Method: find out how you can THE BUSINESS YOU planned courses include English, join our international network! WANT. THE SUPPORT Multi-Music (songs in seven [email protected] YOU NEED. languages for linguistic sensitivity With 34 years of excellence and brain stimulation), art, science, in developing and teaching mathematics and specialized educational programs to children exercise programmes including of all ages, we know what it takes dance, Yoga and Pilates. to launch and grow a business from the ground up. Our Ready Steady Move! professional team provides The Ready Steady Move! you with ongoing training and programme guides children support — from start-up assistance through an active routine of to ongoing marketing, sales, movement, calisthenics and organizational, administrative light exercise, with elements and pedagogic training. from a variety of disciplines, including yoga, Pilates, dance WE OFFER THE and martial arts warm-ups. FOLLOWING FRANCHISE The movement routines are OPPORTUNITIES: used to introduce a basic vocabulary in one of six Helen Doron English languages: English, Children love to learn, experiment Spanish, German, and play. Helen Doron English Hebrew, French, or programmes are built according to Mandarin. Franchising children’s developmental stages and with Ready Steady the courses ensure that learning Move! offers is fun and effortless, through entrepreneurs stories, songs, toys, games, and the opportunity innovative apps. The Helen Doron to start and

GLOBALFRANCHISEMAGAZINE.COM 75 BEHIND THE BRAND

AT A GLANCE ORKIN PEST Controlled CONTROL

Established: 1901 Number of franchised outlets: Success with Over 600 company owned units and 200+ franchises (84 global Orkin franchises) Location of units: North America, South America, Europe, Africa, Asia, Central America and The Orkin Middle East Investment range: $125,000 - $175,000 Minimum required capital: $125,000 Contact: Approaches from prospective partners are Tom Luczynski, President – Orkin Global Development & Franchising. welcomed by Orkin, the international leaders in Email [email protected] pest management services Office phone - +1-404-888-2360 www.orkin.com

rkin is the World leader The multi-billion dollar pest Our approach to commercial in pest management management service industry is pest management is based on O services and currently growing and is being driven, in science and we focus our attention operates over 500 part, by the continual rise in global to the food and beverage industry, company owned branch offices health standards and the ever more the hospitality industry, healthcare, and over 100 franchises in North rigorous food safety standards. food retail, restaurants, retailing, America, Central America, South Pest management is on the front and warehousing. Other business America, Europe, the Middle East, lines of helping protect the public segments are also very interested Africa, Australia, and Asia. The health, property, and the food in our services to help provide a Orkin brand is now represented supply. Commercial and residential pest-free environment. in over 57 countries worldwide. customers alike are looking for pest- Orkin is owned by parent company free environments in which to live RECURRING REVENUES Rollins, Inc. (NYSE:ROL) which and operate their businesses. Orkin Recurring revenues, essential is the largest pest management delivers the high quality services services, low capital investment, company in the world with annual they expect and which are required and attractive profitability all revenues of $1.7 billion USD. for their business and living areas. make the Orkin franchise business a dynamic opportunity for your local marketplace. As an Orkin franchisee, you will receive the award-winning Orkin training, customized to your specific needs. You will also receive the Orkin franchise operations manual, technical manuals, training videos, customer scopes of service, sales and marketing materials, commercial pricing configurations, best practices, and much more. These proven methods and operating guidelines have helped make Orkin the global success it is today, and the leader in the pest management industry. You can also benefit from existing customer and supplier relations established by Orkin. The Orkin global training center is located in Atlanta, Georgia USA. This large facility replicates the various types of customers you may have and produces award-

76 GLOBAL FRANCHISE | ISSUE 4.4 Behind the Brand - XxxxxxxxxxxOrkin 77 GLOBALFRANCHISEMAGAZINE.COM If you would like to know to know If you would like Please visit our company website website Please visit our company FRANCHISE TRAINING The steps to owning an Orkin begin with the franchise franchise and direct contact.application This is then followed by the business plan and financial plan. This allows us to best support your vision of the business. Once the paperwork is completed and the contract is signed, we then schedule your initial franchise weeks) and also (three training schedule the in-country follow up by one of our technical training will assist you from experts. We start to finish! about the Orkin franchise more opportunity and for your area, application, a franchise get Luczynski, please contact: Tom Orkin global President, development at and franchising [email protected] or call Tom or (office) +1-404-888-2360 at (mobile). +1-404-725-1536 have a special program for you to for you to a special program have convert your existing business to an ThisOrkin franchise. enables you to and the Orkin brand under operate benefitvalue added of the from all noted above. programs for more www.orkin.com at about Orkin. information Orkin is looking for business Orkin is looking for business pest in the already If you are “Recurring revenues, essential services, low profitability attractive and investment, capital Orkinthe make all business dynamic a franchise local marketplace” opportunity for your With an operating network of of network With an operating operations, of branch hundreds best Orkin has developed and operating practices use to all to for benchmarks run their business. better in Ireland, franchisee Orkin’s comments, Donal Butterly, “The pest management analysis business operations Orkin help by provided tools local business me with my my decisions and help improve and profitability.” growth overall partnership brings to them Orkin protect We and their operations. from the harmful their brands effects of pests. professionals to partner with and one of the the world leader, in pest names most recognized via our Orkin management, This program. franchise is an opportunity for you to bring world- servicesclass pest management to your market. Our current include individual franchisees business owners, partnerships, and companies looking to add this large servicelucrative business to their business portfolio. business, we also management Orkin’s franchisee in in franchisee Orkin’s Elizondo, Costa Rica, Luis relationship “Our comments, us to with Orkin has allowed company’s the benefit from and expertise technical vast earn our to other resources and confidence customers’ partners Our franchise loyalty. made always at Orkin have us to accessible themselves and our clients … as an Orkin to access have you franchisee, best!” the world’s SATISFIED FRANCHISEES SAY: SATISFIED In-country support visits, by We believe that the Orkin brand believe Orkin brand the that We the best customers helps attract in each market. They demand servicesthe high quality that Orkin provides. These customers expertise, the knowledge, value professionalism, and working winning training for you to use live, for you to use live, winning training Theor on video. includes a center room, kitchen, hotel commercial groceryhospital room, store, and bakery, restaurant, warehouse, our training to ensure much more is the most effective with your employees. The current and future live training center also produces broadcast is the world around that operations to our company-owned so they and global franchises can all benefit from this unique facility staff the best-trained in and have addition to North the markets. In America, our company-owned Kingdom, in the United operations also serve and Singapore Australia, as additional support centers for our global partners. technical services group Orkin’s and business development experts, with help our global franchisees new sales growth and also service addition, regional excellence. In are conferences group franchise basis throughout held on a regular best practices, the world to share common customers, and to provide additional sales and technical a continuous operate We training. These improvement philosophy. group meetings, by sponsored been held in places Orkin, have Arab such as Cyprus, United Mexico, China, Panama, Emirates, and Costa Rica, to name a few. BEHIND THE BRAND

AT A GLANCE ONE CANNABIS

Established: Cannabis: 2019 Number of franchised outlets: 5 Location of units: USA Promising Investment range: 1,000.000 Minimum required capital: $1,000.000 Contact: New Growth Justin Livingston – [email protected] – 720-222-0500 www.ocginc.com Meet the Company That’s Bringing Cannabis to Franchising disconnected worlds of cannabis and franchising. After announcing the franchise offering in 2018, ONE here is an existing publications and influencer blogs Cannabis quickly signed five franchise and rapidly growing routinely throw their two cents into units and then executed a $12 million nascent industry with the ring, but their perspective lacks transaction that brought together 13 T different companies under the ONE no household names, immersion. The truth is, nobody cemented market leaders or nationally outside the industry has a good enough Cannabis name. The company’s access recognized products. The industry has grasp on the mechanisms at play to to scalable resources and award- no clear brand, little consistency in speak confidently, and those who have winning, quality product combined product or customer experience and industry experience hold the trade with a decade of experience running yet it is predicted to exceed $55 billion secrets to success tightly guarded. profitable and compliant legal in 2019 even with a product that isn’t ONE Cannabis (ONE) is emerging dispensaries allows it to maintain available in all states. as the exception to that rule and has the level of consistency that is so That industry is legal cannabis. developed the world’s first extensive important in franchising. The team of The wildly-enticing, untapped cannabis franchise system to usher both cannabis and franchise industry potential of cannabis is often speculated entrepreneurs into the budding veterans at ONE Cannabis command on by those outside the industry industry. The Denver-based franchisor the most direct and plausible route who are watching for an opportune is making a name for itself as the into the market for those who lack the time to penetrate the market. Online bridge connecting the two previously personal experience necessary to succeed.

NEW PATHWAY “Franchising in cannabis has never been done before,” said ONE COO Mike Weinberger, who has nearly two decades of franchise experience and a reputation for growing nationally recognized brands. “That’s a good thing for us, because we’re good at it. Our mission is to create an inclusive company, one that can’t profit unless we bring other people with us. As a franchise, we can create a completely new pathway into cannabis that benefits everyone.” The true draw of ONE Cannabis comes from its duality of prowess. CEO Christian Hageseth has been operating in the legal cannabis industry since its inception in Colorado, building out Green Man Cannabis, a connoisseur- grade retail and cultivation brand with a devoted customer following. He’s partnered with others in cultivation

78 GLOBALFRANCHISE | ISSUE 4.4 Behind the Brand - One Cannabis

and retail ventures in multiple other states and picked up multiple Cannabis Cup wins and an Industry Trailblazer award from High Times, two of the most reputable awards in cannabis. At his side is Weinberger and ONE’s franchise team, a seasoned collective of franchise pros that have sprouted hundreds of units worldwide. “There are companies that have a solid franchise record, and there are those who know cannabis,” said Hageseth. “We’re really the only ones who have proven we can do both.” According to ONE’s financial model, based off previous ventures and state averages; franchisees could OBVIOUS FIT “ONE Cannabis has potentially land well-above the typical On paper, franchising seems like yearly retail revenue. ONE-operated an obvious fit for an industry as developed the world’s locations average almost twice as fragmented as cannabis. However, the much as the $3 million gross sales of amount of inconsistencies that exist first extensive cannabis the average Colorado dispensary. The across the nation are as noteworthy franchise system” inherent scalability in the franchise and can be nearly impossible to model also stands out in an industry navigate. Tax regulations alone are said it’s time to go swimming. that’s notoriously difficult to expand enough to make most multi-unit “The difficulties you hear about in, adding to the company’s list of franchisees hedge their bets and turn are very real, but we mitigate the risk differentiators and franchisee benefits. to safer harbors. There are many our franchisees take,” Livingston said. A typical franchisee can expect a level hurdles, to consider: product can’t “Seasoned franchisees are in the best of support that ONE says doesn’t exist cross state lines, the licensing process is position to grow with us, and they anywhere else in the industry. extremely competitive, site selection is should be doing a lot more than just “Profit margins like this typically a headache and many more. Because of paying attention.” aren’t for sale,” Hageseth said. “But we the hurdles, nobody in franchising has Potential franchisees come from see it as mutually beneficial – a way had the nerve or expertise to dive down different walks of life but share one for us to succeed with as many people deep enough to pry open the clamshell common attribute— they aren’t as possible, grow the brand, and help and get the pearl. Justin Livingston, experts in cannabis, but they want people enter the industry.” ONE VP of Franchise Development, in. Partnering with ONE Cannabis is their way of tackling the monumental considerations unique to the cannabis industry. With extra industry considerations comes extra support. ONE Cannabis franchisees are guided through every step of the process, from compliance guidelines and Standard Operating Procedure implementation to banking solutions and employee selection. Since ONE’s first franchise agreement, the company has expanded its team to around 100 employees and expects to bring on another 30+ by year’s end. With the franchise model in place and an increasing depth of manpower, the company said it’s confident it will make good on its promise to inspire confidence in cannabis for all. “You can only get this level of understanding through an exhaustive amount of trial and error, which we lived first-hand for the past decade,” said Livingston. “That’s what we really offer — anticipation and understanding you can’t get anywhere else.”

GLOBALFRANCHISEMAGAZINE.COM 79 BEHIND THE BRAND WINNERS PROFILE Neighborly Winner of the 2019 Global Franchise Awards “Neighborly’s Best Property and Home Maintenance Franchise mission is to teach is Neighborly. Mike Bidwell describes how a winning our principles brand was developed. and systems of How would you describe Neighborly? the company rebranded to Neighborly in personal and Neighborly® is the world’s largest parent an effort to better reflect the impact of our company of 22 home service brands united service offerings. business success focused on repairing, maintaining and enhancing customers’ homes and businesses And how was it developed? so that all people through nearly 3,700 franchise owners Neighborly is focused on meeting the home we touch live across nine countries. service needs of its consumer base. This has led to multiple acquisitions made by the happier and more Which qualities earned it the title parent company over the years, resulting in of Best Property and Home the April 2017 launch of getneighborly.com. successful lives” Maintenance Franchise? Through this platform, Neighborly’s various Neighborly’s mission is to teach our principles brands are united to satisfy customers across and systems of personal and business success 14 home service verticals. so that all of the people we touch live happier and more successful lives. With this mission When did you begin franchising in mind, we have achieved the perfect balance and how successful has this been? of customer and franchisee satisfaction, The company was founded by Don Dwyer ultimately resulting in the company’s in 1981 – with our first brand Rainbow status as the world’s largest franchisor International Carpet Dyeing & Cleaning of home services today. Co. In 1989, we acquired Mr Rooter and created Dwyer Group as a holding company. What makes a Neighborly franchise More brands soon followed as the company an attractive proposition? continued to grow and prosper. Today, With nearly 40 years of franchising Neighborly consists of 22 brands supporting experience under its belt, Neighborly® nearly 3,700 franchisees which generate has continuously developed the systems $2 billion in annual systemwide sales. it offers to equip its franchisees for successful operations. From Who should potential partners comprehensive ongoing training and contact to find out more about superior marketing strategies across partnering with Neighborly? all brands to the company’s growing If you’re interested in taking ownership digital presence through getneighborly. of your business goals with one of the com, the parent company is committed many Neighborly home service brands, to ensuring that its franchise owners connect with one of the Neighborly everywhere can consistently exceed their franchise business advisors at customers’ expectations. www.neighborlybrands.com and click on the “Franchise Opportunities” section. What was the inspiration for Or, email [email protected] for the brand? more information To capitalize on the evolving shopping preferences of the modern consumer, What does winning Best in Category Dwyer Group chose to revolutionize in the 2019 Global Franchise Awards its 37-year-old legacy by creating a mean to you? consumer brand to tie all of its brands As a franchisor, this award is a reflection together. In reviewing thousands of of the fact that our efforts to be Neighborly customer surveys, we found that our in all that we do are resonating positively services were essentially described as with a global audience, and it motivates “neighborly”. Thus, in September of 2018, us to continue these efforts.

80 GLOBALFRANCHISE | ISSUE 4.4 WINNERS PROFILE UClean The first winner of the Best Emerging Franchise is UCLEAN. Arunabh Sinha explains what won “The entire them this prestigious award system has been designed How would you describe UCLEAN? And how was it developed? UClean is India’s largest laundry and integrated One thing that was always clear to me to enable the cleaning solutions company and the fastest was that this business is tailormade for growing franchise brand with 100+ franchises franchising. Since I had limited funds, we customer to on boarded in under two years. We have built were looking for partners willing to work schedule a door- the business model as a seamless integration on the FICO (Franchise Invested, between traditional brick & mortar store Company Operated) model. But, this was step pick & fronts at the back end, strongly supported by easier said than done. I decided to reach technology in the front end. With a strong focus out to the existing dry-cleaners in the drop in less on customer satisfaction, the entire system Delhi region. This move paid off when a has been designed to enable the customer to Delhi based dry cleaner decided to try than 30 schedule a doorstep pick & drop in less than out UClean’s pilot project. seconds through 30 seconds through our App (available both on Playstore and iOS) or website. When did you begin franchising and how our App” successful has this been? Which qualities earned it the title of The first four months we focused on Best Emerging Franchise? developing the business at our first store. What I believe really stands out for us is how These four months helped us a lot in quickly we have been able to scale the business understanding the business, streamlining to 100+ franchises. The biggest reason for operations, developing process manuals this is the fact that we have created a model and building an overall eco-system. This which is not very asset heavy, can be set- also gave us the confidence that we were up in the shortest possible time and can be now ‘Franchise Ready’. Once we had the quickly adapted across regions and territories. proof of concept, it became easier to get Moreover, we have developed the business new franchises on board. We have been model in such a way that any newcomer can franchising for almost two years now and be quickly trained and handheld to become have managed to recruit 157 franchises a UClean entrepreneur who is capable of (As of May 2019) spread across 33 independently running his own business. cities of India.

What makes a UCLEAN franchise Who should potential partners an attractive proposition? contact to find out more about In a meticulously designed training and partnering with UCLEAN? on-boarding program, we are able to train a They should drop an email to franchise and her team to quickly setup and [email protected]. They can also successfully run their own UClean business reach out to our centralized franchise with constant back-end support from us support number on +91-9999759911 as the franchisor. Investment required in a typical UClean setup is about USD 20,000. A What does winning Best in Category typical franchise is able to break-even on his in the 2019 Global Franchise Awards investment in about 18 months. mean to you? This recognition and reward goes to What was the inspiration for the brand? show that we are moving in the right I was particularly impressed by the growth direction as this is equivalent to an of laundromats in South-East Asia— endorsement from the Franchise Malaysia, Indonesia and the Philippines. As a Gurus of the world. At the team level, background, retail and service concepts which this has been a huge morale booster tend to do well in South East Asia also tend as everyone is really pumped up to to do well in India. After detailed research, I double the efforts and gun for decided to opt for ‘offline first, online second’ higher glory as we move forward model and formally launched UClean in India. on our journey!

GLOBALFRANCHISEMAGAZINE.COM 81 Learn more & register at franchisespringboard.com / 215.825.3100

HOSTED BY THE LAST WORD

MIKE BIDWELL JOHN HAYES

“You need to be certain that the team “Most independent, non-franchised has experience with change and businesses fail within the first year of growth management” start-up”

Whether as a result of organic franchise development or of “How often do franchises fail?” It’s a question frequently mergers and acquisitions, growth brings new opportunities asked by students studying franchising at the Titus Center for success. However, if the right systems are not in place to for Franchising at Palm Beach Atlantic University in West accommodate growth, especially when it occurs quickly, things Palm Beach, Florida, and by students in the A to Zs of can backfire. The faster expansion occurs, the faster your business Buying a Franchise, a seminar that I’ve been teaching for must be able to adapt to meet the needs of your franchise network the last 40 years. and its respective stakeholders. Otherwise, you risk your brand’s In the United States, and probably all other countries, reputation and quality standards. With a poor or failed M&A most independent, non-franchised businesses fail within the integration, expected benefits may not materialize, and your core first year of start-up. So the question about franchise failure business could suffer. If you find that there is an opportunity is asked with hopeful anticipation: Do franchises fail less for your business to expand, take a moment to ask yourself the often, or not at all? following questions before you spread yourself too thin… The answer is that no one really knows. There’s no First, does the growth opportunity align with your clearing house that reports the success or failure of company’s goals? Do not fall victim to “shiny object syndrome,” franchises. Even if such data existed, would it be useful? getting caught up in an endeavor that is initially exciting but Let’s say the data reported most franchises succeed, and will ultimately become a distraction from your overall goals. For that’s a fair generalization. That information might be instance: Imagine you have a chance to acquire a successful brand comforting, but how would it offer any real protection when with a reputable image. That’s great, but if that brand’s purpose there’s still a chance of buying a franchise that fails? does not align with yours, what is the point? Do not grow your There’s a better question to ask: “How often do (brand business through any means if it does not further your explicit name) franchises fail?” Franchise candidates need to realize ambition. they’re not buying franchising. They may be persuaded Next, are there other priorities to focus on first before to buy a franchise because franchising as a practice has taking on new business? If expansion opportunities consistently a reputation for success, but ultimately they are buying a come knocking at your door, then your business is clearly doing specific brand. What they need to know is how often that something right. But are there other items on your development brand, or the franchisees of that brand, fail. Or succeed. “to-do” list that should be completed before you focus on Conducting due diligence about a brand is a good way to accelerating expansion efforts? If you take on significant business answer that question. Of course, franchisors know how often growth on top of other major brand adjustments, you may find their franchises fail, but they’re not always forthcoming with yourself overwhelmed by too much change at once. that information, and they’re not always transparent. Finally, do you have the right team in place? Not only should Due diligence, which involves asking questions of not only you ensure that you have enough leaders and support staff in the franchisor, but franchisees as well as brand suppliers, place for seamless transitions, but you need to be certain that sets you up for success in franchising. For many years, the the team has experience with change and growth management. International Franchise Association in Washington, D.C. After carefully analyzing your company according to these three has advised buyers to “investigate before you invest.” It’s considerations, you should be confident enough to make a the best way to protect yourself. Once you know the failure decision about whether or not the timing is ideal for rapid growth. rate for the brand you want to buy, the failure rate of franchises across the board really doesn’t matter. Mike Bidwell is President and CEO of Neighborly. He was a successful and visionary franchisee and served as President of three Neighborly subsidiary franchise companies. In 2000, Neighborly named him Chief Operating Officer (COO) and in 2007, Bidwell was also named President. In January of 2014, he Dr. John P. Hayes is the Titus Chair for Franchise Leadership at Palm Beach was named President and CEO of Neighborly. Atlantic University in West Palm Beach, Fl.

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