INSIDER INFO
Enhance your brand experience Global Staying relevant is everything How to collaborate effectively Sharing resources is the Franchise foundation of franchising globalfranchisemagazine.com Navigate the global crisis Exclusive insight from the MASTER, REGIONAL AND INTERNATIONAL FRANCHISING industry’s biggest names XPONENTIAL FITNESS: ANTHONY GEISLER, CEO, ON EVOLVING THE WORKOUT WORLD CHARITABLE FRANCHISING HOW THESE BENEVOLENT BRANDS ARE GIVING BACK MILLENNIALS IN FOCUS: 10-PAGE EUROPE GUIDE MEET THE NEXT DISCOVER THE DESTINATIONS GENERATION OF BEST FOR YOUR BRAND INDUSTRY LEADERS
PAGE CHEIKH PAGE SHANNON PAGE BILL 20 MBOUP 22 HUDSON 82 EDWARDS The proven benefits Top strategies to keep A specialist’s guide of going international your business on track to Greater Asia GF 5.2 GATEFOLD flaps V2_GLOBAL FRANCHISE 30/07/2020 10:59 Page 3 GF 5.2 GATEFOLD flaps V2_GLOBAL FRANCHISE 30/07/2020 11:15 Page 4
OWN A HIGHLY SCALABLE FRANCHISE WITH WORLDWIDE DEMAND
We’re looking for Master and Multi-site Franchise partners to expand the BMF Brand globally.
AN AMAZING OPPORTUNITY TO GET INTO THE FAST-GROWING FITNESS INDUSTRY
www.bemilitaryfit.com/franchise BMF offers an amazing opportunity to get into the fast-growing fitness industry. With worldwide industry growth and a renewed focus on the benefits of health and fitness, BMF is perfectly positioned to dominate the global market and this is your opportunity to join us.
For the past 20 years, BMF has consistently been at the forefront of outdoor fitness, delivering the world’s best outdoor workouts in the best urban, mobile and outdoor locations.
Our franchise model offers unique advantages for Master and Multi-Unit Franchisees who want to partner with a leading brand in the sector and grow it rapidly.
Unique advantages of the BMF model:
1: A franchise model designed to be scaled rapidly With low capital investment requirements, a low- operating cost model and a quick-to-market set up phase, BMF franchisees can scale their operations and develop multiple sites quickly. 2: A recognised brand, co-owned by Bear Grylls With Bear Grylls as a co-owner and partner, you will be able to quickly establish your business in a new territory with the instant recognition and credibility that comes from BMF’s brand power. 3: Operate anywhere Unrestricted by the need for bricks and mortar sites, BMF franchisees operate in outdoor spaces in both urban and rural environments. This means there are thousands of locations for franchisees to operate from. 4: There’s never been a better time than now! Now, more than ever, there is a growing recognition of the importance of being fit and healthy. With Governments pushing this message home through mass media campaigns, there’s never been a better time to own a business that offers the most accessible exercise solution on the market. 5: A 20-year heritage and world-class support BMF have developed a robust franchise support infrastructure. This will allow you to leverage our platforms, technology, training programmes, systems and proven business model to grown your own BMF network in your chosen territory. ARE YOU READY TO BE PART OF THE ACTION AND HELP GET THE WORLD FIT FOR LIFE?
Already operational in the UK and California, the global outdoor fitness revolution is only just beginning…
TAKE THE FIRST STEP TO SECURING YOUR TERRITORY TODAY!
Visit: www.bemilitaryfit.com/franchise or email us at [email protected] CONTENts HIGHLIGHTS
Your Enterprise The pioneer of 36 European 60 and altruism 87 international guide Franchising’s unique franchising A continental deep position to give The essential dive on one of the world’s most back makes it perfect for retrospective on a trailblazing dynamic franchise regions charitable initiatives Canadian innovator
FRANCHISE OPPORTUNITIES 76 FASTSIGNS 32 RIK HELLEWELL, OVENU Proven to adapt amid the pandemic The managing director of Ovenu looks back on a year of overcoming challenge 14 BREWDOG 78 ACCURATE FRANCHISING INC. Craft beer for the people Expanding your business through 47 MILLENNIALS IN FOCUS franchising 16 BE MILITARY FIT Meet the industry’s next generation Sparking a global fitness revolution of leaders 86 BOCONCEPT Danish design with a global reputation 29 XPONENTIAL FITNESS 53 MILLENNIAL POWER LIST The evolution of fitness franchising The biggest names shaking up franchising 92 CEX 58 LOGISCOOL Join the retail revolution Bringing education up to code 67 ENHANCING BRAND EXPERIENCE 94 SUMMA FRANCHISE Justin Mink delivers some crucial insight 64 SCHOOL OF ROCK CONSULTING Keeping the music going Guidance on setting long-term goals 80 SINGAPORE: BRIDGING EAST 70 KARE PLUS AND WEST Built to be different ADVICE, INSIGHT, Farrah Rose and Steven Lee unpack this ideal INTERVIEWS proving ground 74 HELEN DORON EDUCATIONAL GROUP The leader in versatile education 10 GLOBAL FRANCHISING UPDATES 82 GOING BIG IN GREATER ASIA Your essential guide to the latest Bill Edwards outlines the key growth markets expansions
90 RAMPING UP RESILIENCE 18 HOME SERVICES BOOM Mike Bidwell details this recession- Karlin Sloan shows how to bounce back 48 resistant industry 97 SHANNON WILBURN, JUST 20 BENEFITS OF GOING BETWEEN FRIENDS INTERNATIONAL The co-founder and CEO discusses Cheikh Mboup celebrates global successes giving back
22 STRATEGIES TO KEEP EVENTS AND EXPOS ON TRACK Shannon Hudson shares timely advice 66 FRANCHISE EXPO PARIS 24 POWERING BEYOND A The leading event returns this October PANDEMIC Brooks Speirs looks to a bright future 85 THAILAND FRANCHISE & BUSINESS OPPORTUNITIES 26 COLLABORATION IS KEY We countdown until Thailand’s Angela Coté highlights the need for sharing premier exposition
4 GLOBAL FRANCHISE | ISSUE 5.2 UPFRONT 62 often feel that the I international franchise industry doesn't quite get the credit it deserves for how it can enhance the livelihood of others. Whether that's in the clear-cut case of the entrepreneurs the franchise model helps to foster with its business-in-a-box principles, or as we've come to discover when putting this issue together, the abundance of charitable endeavours that many franchise organizations carry out. This altruistic side of franchising is laid bare in our dedicated feature on p60, which details not just the acts of kindness that many franchisees offer their local communities and the true difference they can strategies they have in place in response make, but how companies have also helped those to the difficulties brought about by the affected by the coronavirus crisis, too. impact of COVID-19. We hope their ideas This notion that inspiring leaders can will provide you with some actionable scale amazing businesses with a social takeaways to apply to your business, if entrepreneurship ethos at their heart is what drew you're looking for inspiration or a new me to the awe-inspiring story of franchise pioneer, lease of life for your organization. Martha Matilda Harper. Back in 1891, not only did Harper go against the grain and rose from house Keep well, servant to leader of an international franchise network boasting 500-plus franchisees, but she James Fell recognized the uneven playing field of the era and Editor, Global Franchise in response would only allow fellow poor women to [email protected] own Harper franchises. Head to p86 for Jane Plitt's detailed telling of Harper's extraordinary story. @globalfranmag
In the spirit of goodwill, elsewhere in this issue Global Franchise we have reached out to the franchise industry's Global Global Franchise inspiring leaders and top minds to explore the Franchise Magazine
globalfranchisemagazine.com
INSIDER INFO ADVERTISING DIRECTOR HEAD OF CONTENT (FRANCHISING) Enhance your brand experience Global Staying relevant is everything How to collaborate effectively Richard Davies 44 (0)1323 471291 | [email protected] James Fell | [email protected] Sharing resources is the Franchise foundation of franchising globalfranchisemagazine.com Navigate the global crisis Exclusive insight from the MASTER, REGIONAL AND INTERNATIONAL FRANCHISING industry’s biggest names XPONENTIAL SENIOR ACCOUNT MANAGERS DEPUTY EDITOR FITNESS: Luke Elliott 44 (0)1323 471291 | [email protected] Kieran McLoone | [email protected] ANTHONY GEISLER, CEO, ON EVOLVING THE WORKOUT WORLD Matthew Gilley 44 (0)1323 471291 | [email protected] CHARITABLE FRANCHISING DESIGNERS Luke Rogers & Adam Barford HOW THESE BENEVOLENT BRANDS Rachael Wenham 44 (0) 1323 471291 | [email protected] Published by Aceville Publications Ltd ARE GIVING BACK MILLENNIALS IN FOCUS: 10-PAGE EUROPE GUIDE MEET THE NEXT The Boatshed, Sovereign Harbour, DISCOVER THE DESTINATIONS GENERATION OF BEST FOR YOUR BRAND CREDIT CONTROL Sue Carr 44 (0)1206 505903 INDUSTRY LEADERS Eastbourne, East Sussex, BN23 6JH. PAGE CHEIKH PAGE SHANNON PAGE BILL ACCOUNT MANAGER 20 MBOUP 22 HUDSON 82 EDWARDS The proven benefits Top strategies to keep A specialist’s guide of going international your business on track to Greater Asia Millie Hall 44 (0)1323 471291 | [email protected] PUBLISHER Matthew Tudor Printed in England
ISSN 1744-6988 © Aceville Publications Ltd 02 EXPERT
9 771744 698037 ADVICE 9 MISTAKES FRANCHISEES MAKE And how to avoid them CAREER CROSSROADS What 5 people who went from employee to franchisee LESSONS LEARNED FROM THE PANDEMIC Franchise 4 reasons why franchising £3.99 | VOLUME 16 ISSUE 2 what-franchise.com continues to thrive 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 A MARKET I KNEW 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 WITH A MODEL I COULD TRUST 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 Martin Jones explains why he decided to join Shuttercraft 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
POWERBRANDS FRANCHISES 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 UNDER £25K 12-page special 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 SUPER SIX The options available to would-be investors 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. PUTTING THE PROP INTO PROPERTY 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 Liam Watts is planning for life after rugby league 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, PAGE PAGE PAGE FRANCHISE MONEY WELL SAVE YOUR 14 RESEARCH 54 SPENT 88 SANITY whether or 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 This unrivalled insight The key elements of a How new business is a must read first class franchise owners can beat burnout not necessarily reflect the views and opinions of Global Franchise magazine or staff. GLOBALFRANCHISEMAGAZINE.COM 5 UPFRONT Facts, figures and trends from the world of franchising
Enterprise and altruism IN THIS ISSUE: 60 Franchising’s unique position in a community makes it the perfect avenue for charitable outreach
32 Navigating an international crisis Rik Hellewell of Ovenu talks to Global Franchise about persevering in times of hardship
Living your brand The first in a four-part series on 68 adaptive marketing
Growing in Greater Asia 82 Bill Edwards provides a cover-all guide for entering this profitable region
Trendsetters and pioneers A retrospective on the Canadian house servant who played 87 a major role in taking the franchise model global
6 GLOBALFRANCHISE | ISSUE 5.2 Franchising around the world
As the world slowly recovers from the height of the coronavirus crisis, international markets once again thrive and become attractive propositions for brands with global expansion in their sights. As well as a detailed exploration of Europe’s primary markets, this issue also dives deep into the lasting appeal of the Asian continent. THE GLOBAL FRANCHISE PODCAST P.37 FRANCE Europe’s leading franchise market We recently spoke with Robert “When you find a premium location in Paris, you could be Cresanti, president and CEO of the profitable with whatever you’re selling, because the purchase International Franchise Association, power is high and there is always large demand” about the invaluable work the IFA - David Borgel, Franchise World Link has been doing alongside Congress to support the franchise industry P.44 THE NETHERLANDS throughout the past few Europe’s affluent travel hub challenging months. “The impact of the Dutch Franchise Act is considered to be substantial, in particular for franchisors” To listen to this episode of the - Roelien van Neck, Bird & Bird Global Franchise Podcast, as well as P.80 SINGAPORE all of our upcoming conversations with The bridge between East and West franchising professionals, make sure “Basing your Asian operations in Singapore is a tried and to visit globalfranchisemagazine. tested formula that has led to a great deal of success for com/podcast any number of international brands” - Farrah Rose, The Franchising Centre
With more than 83 million but Generation Y entrepreneurs millennials in the U.S. alone, will soon dominate Millennials: which equates to one-quarter of franchise ownership. the country’s total population, In this issue’s sector focus, we this demographic is becoming unpack exactly what makes this franchising’s more important than ever. Not coveted and growing group tick, only are millennial consumers and highlight some of the key one of the primary groups that players that could populate the youthful overhaul brands should be marketing to, future of franchising. “I can’t wait to see more millennials and even younger folks realizing that they can get into business by themselves by buying into a business that works”
P.49 RYAN HICKS, VP OF BUSINESS DEVELOPMENT, RALLIO
GLOBALFRANCHISEMAGAZINE.COM 7 Flexible working is the new norm, worldwide
The majority of office workers cent of businesses in the U.K. that around the world aren’t only have enacted flexible working carrying out duties from the policies. This number climbs comfort of their homes; many throughout Europe, with 75 per see it as the new norm, even cent of Dutch businesses allowing when moving toward a post- remote work, and an even higher COVID world. 80 per cent in Germany. According to a study conducted The message is clear: remote by workplace specialist, Instant working is becoming even Offices, 83 per cent of workers feel more popular, and this is a that they don’t need to be in an perfect match for home-based office in order to be productive, franchises such as home repair which is facilitated by the 68 per or online education brands.
Understanding 2021’s EMAIL MARKETING THE KEY TO retail consumers As consumers return to brick-and-mortar retail locations, businesses CUSTOMER RETENTION need to be prepared for the expectations and safety measures that Email marketing has been an email, compared to the define our ‘new normal’. SmileDirectClub, a teledentistry organization, one of the key factors 4.7 viewed when directed has outlined a handful of these as part of a recent report. helping retailers to survive from a different avenue. For example, businesses need to offer a premium digital experience, during ongoing lockdowns, Despite this, only three per as this has become a priority in our new socially-distant world. “After states new research from cent of digital marketing months where the only access to the outside world has been through online ordering, consumers will search for Gabriel Gastaud, director spend in 2020 was put the best products and services online, of professional services towards email strategies. It considering the offering before they head at Validity. could be time to revisit into a store,” said Kay Oswald, president In fact, email has made your marketing budget, international, SmileDirectClub. consumers engage with to keep up with tech- Oswald also asserts the importance brands more often, and has savvy competitors. of establishing a structured entry made them more likely system within your brand: “Expect to return than other to see more retailers marketing strategies, driving appointments and optimizing such as social media time in-store or paid search. to protect staff Across Europe, and customers, website visitors or using multiple viewed an average complementary of 5.8 pages once entry points into redirected from their business.”
Countries targeted by most cyber attacks revealed
The U.S. is the country that suffered losses equating to $1m or more. the most cyber attacks since 2006, at Alongside the research, Specops 156, according to a study conducted by Software provided some key tips when Specops Software spanning from May beefing up your company’s cyber 2006 until June 2020. This figure is security: keep software up-to-date, followed by the U.K. at 47, and India at carry out regular diagnostics of your IT 23. The research defines a significant systems, and provide guidance via cyber attack as an attack on a country’s a formal document so that everybody government agencies, defense and high- in the organization is aware of cyber tech companies, or economic crimes with security protocols.
8 GLOBALFRANCHISE | ISSUE 5.2 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 9 NEWS
Global franchising updates The latest highlights, expansions, and coronavirus crisis updates that are making the headlines in the world of international franchising
he global health crisis is certainly not over just Here are just a handful of the latest developments; to keep yet, but the franchise community is already seeing up-to-date with all of the latest franchising news, head over to hopeful signs of returning to normality – and even globalfranchisemagazine.com. T international growth. This is true for even restaurant and fitness concepts, which are among some of the most hard-hit with regard to lockdowns and mandated closures.
Marugame Udon: European expansions The popular Asian noodles and tempura restaurant franchise, Marugame Udon, will launch in London in 2021 following the formation of a joint venture between Toridoll Holdings Corporation and Capdesia Group Limited. The new U.K. site is planned to be the start of a widespread European development plan. “The Marugame Udon brand has become one of the most exciting growth concepts in the Asian category today and it’s not often one gets to partner with the clear leader in the category,” said Abe Matamoros, co-founder and managing director of Capdesia Group Limited. Paris Baguette: Opening in Oregon The international Korean bakery brand with more than 4,000 locations worldwide is consolidating PJ’s Coffee of New its American presence with two new Orleans: Mochas openings in the States – in an entirely for marines new market for the concept. As part of a partnership with Sodexo, The two new sites are scheduled to PJ’s Coffee of New Orleans will serve serve the Portland, Oregon market, and are its unique coffee blends at select United being developed in partnership with a group States Marine Corps bases spanning of experienced Portland restauranteurs. from California to South Carolina. This Paris Bagette already has 82 restaurants in news comes alongside the release of a new the U.S., which are a mix of corporate- and coffee blend for the brand, Sunrise Salute, and franchisee-owned. a donation to the Fisher House Foundation to build “We are confident our vibrant comfort homes for military veterans and their families. atmosphere will resonate well with the “The PJ’s family includes many U.S. veterans which Portland community, along with our wide makes this partnership with the Marine Corps that variety of menu options, such as our much more exciting for us,” said Peter Boylan, president chef-driven sandwiches and salads and of PJ’s Coffee and U.S. Army veteran. “We have a passion for our assortment of delicious pastries and supporting our military community and are thrilled that we cakes,” said Gregg Koffler, vice president of can give a taste of our coffee to our brave men and women franchise sales and development. in uniform.”
10 GLOBAL FRANCHISE | ISSUE 5.2 Wyndham Hotels & Resorts: Starbucks: Serving up in Increasing Indian presence South Korea The world’s largest hotel franchising company is Starbucks Korea will soon open its very first bakery increasing its presence across the Indian subcontinent cafe in South Korea, where the international coffee by unveiling plans to enter Nepal and Bhutan, as well brand already has more than 1,400 regular stores. as introducing its Hawthorn Suites by Wyndham brand The new launch is the start of Starbucks Korea’s in India. plans to diversify its offering within the caffeine- “Over the last few years, Bhutan and Nepal have loving country, which already has more than 71,000 seen a steady increase in tourism, making them ideal coffee shops; 14,000 located in Seoul alone. destinations for us to expand into,” said Nikhil Sharma, Previously, Starbucks had been outsourcing the area director, Eurasia, for Wyndham Hotels & Resorts. “As production of its baked goods that it sells at all the Indian subcontinent continues making waves in the of its South Korean locations, but this new store hospitality industry, Wyndham remains laser-focused on will bake fresh bread on-site with dough from tapping into its key markets and fulfilling our mission of Shinsagae Food, the food manufacturing arm of making hotel travel possible for all.” South Korean retail corporation Shinsagae Group, which owns 50 per cent of the South Korean Starbucks franchise through subsidiary E-mart.
7-Eleven: Celebrating 71,100th store 7-Eleven recently hit a novel milestone as the global convenience store brand opened its 71,100th unit in Seoul, South Korea. The brand allegedly opens a new unit somewhere in the world every 3.5 hours, with developments in India and Cambodia planned to open soon. “7-Eleven’s iconic orange, green and red stripes are easily recognized in 17 countries around the world,” said Joe DePinto, 7-Eleven president and CEO. “A lot has changed in how, when, and where 7-Eleven does business. But one thing that hasn’t changed is our commitment to putting customers at the forefront of all we do.”
Gold’s Gym: Flagship South African agreement Gold’s Gym currently has a presence in 28 countries, but will soon add a 29th as the fitness franchise signs its first South African franchise agreement in Sandton, Johannesburg. This inaugural site will open as soon as the local government allows gyms to begin operating again, and the location will serve as a prototype for more aggressive expansion in the country. “Opening gyms in South Africa feels a lot like coming home,” said Craig Sherwood, chief development officer for Gold’s Gym. “Not only is it a country with a strong devotion to health and fitness, but South Africa is also known for its appreciation and loyalty for proven brands that lead the industry.”
GLOBALFRANCHISEMAGAZINE.COM 11 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 12 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 13 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - BrewDog
AT A GLANCE BREWDOG
Established: BrewDog: 2010 Number of units: 100 (9 franchised) Expansion markets: U.S.A., Europe, craft beer for Asia, Australia Required capital: $1m (+liquid funds) Contact: [email protected] brewdog.com/uk/locations/bar- the people partnerships
weekend brunch. With over half the options being plant-based, From garage-brewing to the largest craft brewery BrewDog is a fiercely proud in Europe, BrewDog has changed the face of champion of inclusivity. beer in a decade GROWING IN 80 COUNTRIES bars are designed to make craft BrewDog supplies its craft beer, including flagship Punk IPA – beer more accessible, more open, the world’s number one craft and more fun. That’s because in a beer brand – to over 80 countries BrewDog bar, it’s OK to be a novice. around the world. The brand is Asking questions is encouraged. looking to work with proven, From first-timers to seasoned multi-site operators to bring experts, whether veteran or virgin; BrewDog to your country and with free tasters, beer flights and to open iconic bars in the best educational beer schools, BrewDog locations. After all, no-one encourages all customers to try and love better beer. knows your backyard better. Since opening its first bar in its home city of Aberdeen in 2010, JOIN THE PACK BrewDog has a single aim – that As a company, the things BrewDog every customer has an awesome cares most about are its beer, its time, no matter the stage of their people and its mission. The brand craft beer journey. You don’t need a is proud to work hand-in-hand PhD in brewing to order (although if with amazingly committed and you have one, more power to you). knowledgeable F&B operators to run bars where people have an CRAFT BEER NIRVANA amazing time. If those are the kind of things you value too, then you’re efying convention at Every BrewDog bar around the the perfect BrewDog franchisee. every turn, BrewDog bars world has an ever-changing line It’s time to join the dog pack. have been a cornerstone up of amazing craft D of the brand’s beer from its brewery phenomenal growth. More than and others, stored places to drink beer; these are bars and served perfectly. that build communities. And with games areas With this maverick attitude, featuring shuffleboard BrewDog has created a completely and retro arcade new type of business model. machines, DeskDog With over 130,000 ‘Equity Punk’ flexible working spaces shareholders, its community-driven and even hosted approach prides itself on giving back, dog parties – everyone being open and transparent, and is welcome. looking after its people. BrewDog’s Food is also a huge mission is to show that craft beer can part of the BrewDog be a force for good in the world. experience. With 30 per cent of sales in the bar BREWDOG IS coming from food, its FOR EVERYONE high-quality junk food- In pursuit of this mission, in the past inspired menus feature 10 years BrewDog has opened over awesome pizza, stacked 100 locations around the globe. These burgers and hearty
14 GLOBAL FRANCHISE | ISSUE 5.2 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 15 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE BE MILITARY FIT Sparking a Established: 1999 Number of locations: 70 (franchising since 2019) Locations of units: U.K., California global fitness Minimum required capital: £25,000 (single unit) Contact: [email protected], 07955 748203 revolution bemilitaryfit.com/franchise
Be Military Fit is looking to build on its U.K. success, “Unrestrained and expand internationally by the need for bricks-and-mortar ith a 20-year heritage This is something that can take years in the industry, Be to build with less established brands. sites, franchisees Military Fit (BMF) has With a following of over 11 W consistently been at the million across Bear’s social can scale their forefront of outdoor fitness. BMF is media platforms, the exposure leading the way with its cutting-edge provides an incredible way for operations rapidly” training programmes, recognized franchisees to benefit from brand, and loyal membership Bear’s BMF promotions. Bear’s there is a clear global demand base. The brand provides a great media appearances can literally for BMF’s accessible and results- opportunity for master franchisees drive tens of thousands of visits orientated workouts. who want to tap into a powerful to the BMF website, resulting In many ways, BMF provides the concept and scale it rapidly. in new leads and membership perfect antidote to the global health With Bear Grylls as a co-owner and sales for franchise owners. A true crisis and the current pandemic the partner, BMF has great reach into demonstration of brand power. world is facing. There is a growing new territories. Master franchisees recognition amongst the public that will benefit from the ability to quickly WORLDWIDE DEMAND being fit and healthy is one of the establish their business through the With a worldwide audience best ways to prevent and reduce the instant recognition and credibility taking part in Bear Grylls’ online impact of viruses, both now and in that comes from BMF’s brand power. workouts during the lockdown, the future. This message is being reinforced by governments and medical professionals all over the world and is set to be amplified in the months and years ahead. BMF already attracts members from a wide demographic from 18 to over 70 years old. When you combine this with the fact that outdoor exercise is generally recognized as being safer in the current climate, it’s easy to see how this form of exercise is set to rapidly increase in popularity. Amongst its many benefits, outdoor exercise can be socially distanced more easily and brings with it all the benefits of fresh air and community engagement. For BMF, the outdoor fitness revolution is only just beginning.
OWN THE OUTDOORS Operating in the great outdoors also brings multiple benefits for franchisees. Unrestrained by the need for bricks-and-mortar
16 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - XxxxxxxxxxxBe Military Fit
GLOBALFRANCHISEMAGAZINE.COM 17 GLOBALFRANCHISEMAGAZINE.COM
The programs are designed designed are The programs to a franchisee This allows development With the recent fitness, BMF has built this member has built this member fitness, BMF based on military experience and cutting-edge methodology concepts that training results. deliver wide audience, from a to attract with adults, to older kids through complete designed for workouts sessions and competitive beginners a challenge. those looking for for build a sustainable business that The the local community. engages a provides system programming and long journey superb member people to keep term progression longer. for with BMF training incorporates which at home, of BMF and on-demand stream the best live utilising the latest workouts BMF can truly members technology, anywhere. train JOIN THE REVOLUTION There couldn’t be a better time to time to be a better couldn’t There With into the fitness industry. get and a more growth worldwide is BMF consumer, knowledgeable to dominate the well-positioned fitness The outdoor global market. just beginning. is only revolution “With worldwide growth and a more and a growth worldwide “With Be Military consumer, knowledgeable to thedominate well-positioned Fit is fitness outdoor The market. global beginning” just is only revolution The BMF franchise model model franchise The BMF allows system The operating has become a training Group business is built on its BMF’s BEYOND THE BEYOND BRAND brand, In addition to a powerful a robust has developed BMF support infrastructure. franchise and a experts With industry network dedicated franchise support team on hand, BMF the highest receive franchisees the of support throughout levels business journey. of their lifecycle training, includes programming, to systems and IT marketing, their to operate enable franchisees business efficiently. on growing to focus franchisees business and ensuring they their team of instructors and their consistent a high-quality, deliver members. for experience workout of to the success This is paramount fitness business. an outdoor phenomenon in the worldwide are Members fitness industry. and experience demanding a better in variety looking for constantly are workouts. their to Known experience. member in community be the strongest
For individual franchise owners, owners, franchise individual For multiple to develop The ability the franchisees, master For in to operate The ability this represents the opportunity to to the opportunity this represents taking businesses by scale their whilst on additional territories building a team of instructors sessions the training to deliver multiple locations. their across working is the franchisee way, This their and developing on growing asset. valuable business into a the low by territories is driven requirements capital investment phase, set-up and a quick to market into to get helping franchisees business and become the for allows ease of scalability of multi-unit development rapid to and the ability franchisees and network build a strong quickly territory. in a new presence brand spaces in both urban outdoor means environments and rural thousands of locations are there from, to operate franchisees for of members number and the low a profitable to operate required the smallest of location means even a can make villages and towns rural territory. BMF great sites, franchisees can scale their can scale their sites, franchisees rapidly. operations quickly. profitable ADVICEINSIGHT
Why the home services industry is prospering during a pandemic
Mike Bidwell lays out the benefits of owning a "recession-resistant" home service franchise during a time of widespread uncertainty
WORDS BY MIKE BIDWELL
s the business world Take the home services industry What the industry has shown is struggles to cope with for example: while there are a number an ability to rebound quickly after A the new normal we’re of services that homeowners could the initial dip in overall revenue due now living in, certain simply not do without in recent to the pandemic’s outbreak. This industries have been hit harder months while they’ve been confined made it stronger in the long run, and than others. Among the businesses to their homes, such as plumbing, therefore, recession-resistant. struggling most right now are bars HVAC, and appliance repair, others THE AUTHOR and restaurants, hotels, gyms, and might be deemed more Mike Bidwell is the Essential president and CEO so many others that are dependent discretionary by some maintenance of Neighborly, the on a brick-and-mortar presence. homeowners who have The last major recession parent company of The home services industry, found themselves in experienced in the U.S. several service-based however, is holding up better than personal financial franchise brands occurred in 2008, as I’m neighborlybrands.com most. The nearly $300bn space has turmoil. And even sure we all remember far continued operations across most essential services too well. While the home of its service verticals for almost might be ignored for services industry survived and the entire pandemic. Why? Because longer if a homeowner came out stronger from this many of the services offered have is trying to put off a been deemed essential even in the major expense. midst of a global health crisis. For these nuanced For this reason, ‘recession- reasons, to proof’ is a term I’ve heard a lot say the entire home recently when asked about how services industry Neighborly’s family of home service – which is broad brands has managed during this enough to include economic downturn. It’s a term “everything from used loosely for all essential service painting to providers these days, based on the plumbing,” assumption that any business that as we say at can survive this crisis is set for any Neighborly – was other future crises. left completely As much as I wish this were the unaffected by case, the thought that any business the current is entirely recession-proof is naive. recession would be false. Recession-resistant The more accurate term to define essential industries today would be ‘recession-resistant’. These are the businesses that may not necessarily be thriving in times of economic downtown per se, but they are able to stay afloat by providing products and services that people will continue to depend on regardless of their personal finances.
18 GLOBAL FRANCHISE | ISSUE 5.2 period of economic crisis, I would homeowners about having a to focus on their home improvement argue that the 2008 recession was stranger in their homes during this projects, the increased usage of the definitely a tougher time for time. However, while I can only home, the increased availability of our industry. speak directly to what Neighborly homeowners to have technicians come After all, the recession was has done in light of growing health out to their homes since they’re not at caused by the crash of the housing concerns, halting our services was work – won’t all these benefits to this market, making people’s homes the never an option. industry go away? last thing they wanted to invest in Instead, we’ve adjusted our with remodeling and maintenance practices to account for the projects offered by service health and safety of all of our “The lasting effects providers as home values were team members and customers, falling rapidly. introducing new protocols like of this pandemic may This time around, we’re all utilizing personal protective using our homes more than ever equipment, social distancing, include more time spent due to shelter-in-place mandates. elevated hygiene, and screening. Our A/C is running on full-blast. In response to our enhanced in the home regardless of We’re utilizing our home plumbing safety protocols combined with the during times when we’d normally relative necessity of the services social distancing” be at the office or in public. And, we offer, we’re seeing that people Not necessarily. In fact, the lasting our appliances – dishwashers, are slowly but surely warming effects of this pandemic may include microwaves, ovens – are being up to the idea of having service more time spent in the home regardless practically worn out by constant providers back to their home. This of social distancing, as our homes have use. As we continue to rely on is causing the rebound we’re now proven themselves to be just as effective these essentials for the foreseeable seeing in revenue, even for more spaces for work as most offices would be. future, it’s not an option to ignore discretionary services like painting, With the advanced technology we their performance. cleaning, or landscaping. have at our fingertips nowadays, it has Of course, there’s still a been easier than we may have expected reasonable concern among A concept with for a business to continue to operate proven value remotely. For this reason, more and more Now you may be wondering, what companies are either prolonging the will the impact be on the home time before they return to their offices, services industry if and when or they’re doing away with office space the world starts returning to entirely. The work-from-home population normal? The time is likely to remain higher post-pandemic homeowners than it was before, meaning a continued have had emphasis on the value of having a comfortable, efficient home. For this reason, the opportunity to invest in the home services industry is more attractive than ever. And, with many careers becoming uncertain, home service franchise owners can feel confident that their services will continue to be needed not just throughout the remainder of this pandemic, but for decades to come. Of course, this is not to say that the industry is recession-proof; I think I’ve made myself clear that I don’t consider this term to be realistic. But this industry’s likelihood to fare better than most in a recession, or its recession- resistance, is higher than perhaps most other industries out there today. After all, even as technological advances and new innovations continue to render some industries obsolete, I find it hard to believe that humankind’s need for shelter will ever go away. Right now, with the SBA offering more loan support than ever to keep small businesses on their feet during this recession, there’s never been a better time to invest in a home service franchise.
GLOBALFRANCHISEMAGAZINE.COM 19 INSIGHT
The benefits of international franchising in times of crisis If it weren't for the collective efforts of its global network, this franchise would be looking at very different mid-year sales results
WORDS BY CHEIKH MBOUP
n times of crisis, the entire network for the duration of We also made a point to order benefits of being a part this crisis. However, the negative from our Chinese suppliers of a franchise network impacts of this pandemic have much further in advance than I become even more been surprisingly minimal on our we normally would, and we built apparent. It’s valuable to have a network as a whole. In fact, we’ve relationships with new suppliers large network full of experienced experienced in the past six months in countries not yet affected by the professionals – both on the a spike in sales by 18 per cent, even virus. By the time the pandemic THE AUTHOR franchisor and franchisee ends – to though the economy as a whole reached our home base in the U.S., Cheikh Mboup is lean on in times of uncertainty. is struggling. we were already familiar with the the president and While the ongoing pandemic There are a number of factors I virus from what we learned from COO of Edible has certainly put a strain on all could credit our recent success to, our international partners who had Brands, the parent company of Edible business around the world, it could but a key piece I always come back already been affected, and we never ediblearrangements. be argued that the small businesses to is the fact that having a presence experienced any supply shortages com that operate under the umbrella of on multiple continents has actually because we had already begun a large franchisor have been less served us well during these tough efforts to avoid such an issue. vulnerable to the negative impacts times. From our experience so far, of COVID-19 than the standard these are the main reasons why We enhanced “mom-and-pop” businesses that are being an international brand has relationships entirely on their own. helped us not only survive, but with our global Regardless of what support is actually thrive during this global partners available, we’ve seen in the U.S. how health crisis. Communication regulations can vary from one state has been crucial for to the next, and even from one city We were a step all organizations to the next within the same state. ahead of the game throughout this Those differences are even grander While the coronavirus was not pandemic, regardless of on a global scale, so keeping the officially declared present in the whichever industries they entire network in line with local U.S. until early 2020, its first- belong to. For those of us in government and health mandates reported origins date back to the leadership positions for our can be tough on an international end of 2019 in China. In addition companies, none of us can franchisor. This all might cause to Edible having stores spanning say that we were completely one to assume that operating the Asian country, we also had prepared for handling a internationally in the midst of a suppliers based in China. Because crisis like this. We’ve had crisis adds to the current challenging concerns of COVID-19 began to be flexible and willing to circumstances, but I believe the affecting those partners of ours adapt to the constantly- opposite is actually the case. early on, we had some advance evolving circumstances of Edible Arrangements is one notice in terms of preparing for the issue at hand. Throughout of many franchise brands that this crisis. We were helping our this learning process, my operates on an international scale, franchisees in China figure out team and I found the value with more than 1,100 locations how to respond to mandated in leaning more heavily into spanning seven countries. It would closures before it was even a our international partners for be a lie to say that everything has topic of discussion in other parts direction in order to pen been smooth sailing across our of the world. a suitable solution. “Communication has been crucial for all organizations throughout this pandemic”
20 GLOBAL FRANCHISE | ISSUE 5.2 Every country around the We improved pandemic. To ensure people could world has implemented different local community still celebrate this popular religious standards for business operations relations, which led to holiday from the safety of their during this pandemic, and those impactful innovations homes, we introduced cakes and standards have been evolving on One of the major components of other baking items relevant to this a daily basis. In some nations, Edible’s success thus far in 2020 market that would add something Edible’s services have continued despite the ongoing pandemic was special to people’s homebound safely with no-contact delivery our realization early on that we Ramadan festivities. and curbside pickup initiatives. needed to listen to our customers Both product introductions were But in others – in China, for first and foremost, making sure we major hits where they were offered, example – there was a time when provided what they actually needed and we owe that to a willingness operations needed to halt entirely. during this difficult time. Customers’ across our network to involve We communicated constantly needs varied from one country to ourselves in the communities we with our franchise owners and the next, so we needed to be really serve by focusing on the needs of our associates in different countries in tune with what our audiences customers there, recognizing along about what their local governments’ were interested in depending on the way that those needs differed expectations were, and then we had where they were located. from one country to the next. thorough conversations about how Listening to our customers our brand should cope with the more than ever before led to the Going global is worth it various regulations. introduction of some important While being an international Having these discussions on a innovations across our network, all franchise brand does present regular basis kept us in tune to of which were designed specifically inherent challenges in terms of what was happening not only to for the countries where they were organization, communication our company on a global level, made available. For example, in and compliance, it also aids in the but to society as a whole. It gave North America there was a general maturity and sophistication of the us some foresight into what could concern among people about how business. Were it not for the collective be expected from one country to safe grocery stores would be, but efforts of our global network, we could the next as certain trends began going without fresh food was not an be looking at very different mid-year making themselves apparent. option. To help ease these concerns, sales results, because we would not Our global knowledge helped we introduced via our North have been as educated or prepared inform the decisions we made in American stores delivery of fresh for a crisis of this size. every country where our brand produce boxes, thus launching our If your franchise brand is is present. entry into the grocery space. contemplating whether or In the UAE, on the other hand, not to pursue international Ramadan occurred from April- development, I urge you to keep May, right at the height of the in mind these potential benefits of having global knowledge when the future is uncertain.
GLOBALFRANCHISEMAGAZINE.COM 21 INSIGHT
Top strategies to keep your business on track during COVID-19
A franchisor shares how they have managed their network during the coronavirus crisis, even signing master franchise agreements in the process
WORDS BY SHANNON HUDSON
hen COVID-19 started we conduct business and where Create innovative to spread across the we focus our efforts to weather solutions that become W U.S., we were faced with this storm. competitive strengths the same questions so Even in the best of circumstances, many businesses were forced to Prioritize health and it’s not easy for business leaders address: ‘How do we keep our team safety above all else to pivot at a moment’s notice. But and our members safe? And how do The single, most important the uncertainty and ever-changing THE AUTHOR we continue operating?’ goal for business owners and Shannon Hudson is nature of the current situation Like every business owner in operators should be to prioritize the Founder and CEO makes it even more of a challenge. every industry impacted by the of 9Round Fitness the safety of employees and Daily lives are changing, and 9round.com COVID-19 crisis, we had to innovate customers. As restrictions have businesses need to step up and quickly for the health and safety loosened up in some countries change as well, and not just for of our team and our customers. In and states, and fitness centers the present moment, but for the one week’s time, my company went are once again able to reopen long-term vision of the business. In from the world’s largest kickboxing their doors, it’s not business as the end, these challenges may also organization to the largest online usual. In order for members to present incredible opportunities. kickboxing organization. feel confident returning to the For our brand, on-demand virtual At 9Round Fitness, we recognized gym floor, the focus needs to be workouts were introduced to adapt that we needed to provide our on stringent health and sanitation to shelter-in-place orders. And members with a way to continue guidelines. This includes new the feedback was tremendous. their workouts in some fashion member conduct expectations and as they sheltered-in-place. So enhanced sanitation procedures, as we immediately rolled out digital well as ensuring appropriate social at-home workout videos for our distancing. Luckily, our studios are members across the globe. set up in a circuit format, which This was a lifeline for our brand naturally allows for this. that made all the difference. And At 9Round we spent a lot of today, as many of our franchise time thinking through a robust studios have reopened their doors safety plan so that our members and welcomed members back know that we planned well and where jurisdictions have allowed, that we care about their safety. we know one thing: no matter the One of the biggest changes for industry, businesses must embrace 9Round is a new process for a transformation. members to book workouts in 9Round was founded on high advance to maintain reduced fives, fist bumps and trainer-led capacity at clubs. This is a punching. And while that has fundamental change to our taken a hiatus for now, we are model where we’ve always still working hard to deliver the prided ourselves on offering incredible engaging service our no scheduled class times. members have come to expect, even But it’s also the prudent if it looks a little different. thing to do when we all While we can’t predict the future need to adhere to of the virus, we can control how social distancing.
22 GLOBAL FRANCHISE | ISSUE 5.2 We realized that this should be constant communication via emails, For 9Round, global expansion something that should become webinars, and direct support continues to remain a priority. a part of our business model through our franchise business As we head into the second half permanently. As a result, we plan to coaches so that the changes could of 2020, we are encouraged by expand upon this as quickly as we be implemented quickly for their the momentum we are seeing. In can so that our members have the own studios to protect as much this economically turbulent time, option to work out at home, in our local-level revenue as possible. potential franchisees are still seeing studios, or with a hybrid approach For our members, we the appeal of owning a 9Round depending on their comfort communicated changes via email franchise. We continue to see levels. We have already engaged newsletters, regular social media strong interest in the brand several companies to help us with updates, and Facebook Live not only domestically but production, app development, and workouts with myself and my co- internationally, too. With recent coaching us in building our own founder and wife, Heather. In doing deals awarded for Vietnam and dedicated filming studio buildout. all this, we did more than simply Indonesia, we now have master We plan on having a big launch no provide a way for our members to developer candidates in India, later than early 2021 for our newly keep working out, we also found Pakistan, and Brazil as well. enhanced on-demand program a way to keep the dialogue open branded as 9RoundNOW. with them while they were not able to come into their local studios. “No matter the Keep the You, too, can use this crisis as a industry, businesses communication way to create the dialogue with channels your customers that is so badly must embrace a open through needed to move unprecedented our communities transformation” times forward in the Effective communication most positive during any crisis is crucial to ways in the most As all businesses and business maintaining customer trust stressful of times. And owners weather this storm, I and restoring our franchisees’ it is an opportunity that invite you to revisit the rock-solid morale. For our owners, it local businesses are commitment you’ve had with your was responding to the uniquely able to foster. customers from day one. Look for crisis swiftly by rolling ways to innovate and adapt to a out our on-demand Don’t lose sight of ‘new normal’. Work together to workouts and new long-term goals make sure your people feel safe, sanitation procedures While the trajectory of the virus embrace change, and remain and communicating is unknown, and we continue to optimistic for our collective future. those changes triage problems in the present, There are needs to be met, and clearly through we can’t abandon long-term we can fight harder to meet them plans for growth. Maintaining together for the collective good. a forward vision is critical, while also being nimble to adapting those plans to a changing world.
GLOBALFRANCHISEMAGAZINE.COM 23 INSIGHT
Why there will be a boom in franchising post COVID-19 Three reasons why franchising is set to power beyond this pandemic and into a bright future
WORDS BY BROOKS SPEIRS
he beginning of an overall shortage of confidence in brands that have thrived. COVID-19 felt like the entrusting their livelihoods in the There is now an abundance of end of the world to hands of a boss. Put simply: many affordable real estate for lease and/ T business owners. As are fed up, and ready for a change. or purchase, as well as a pool of state and national People are craving a sense of diverse job applicants larger and legislation began debating security; they want a job where they more eager than ever before. Now whether or not businesses – from can be their own boss, make their is the time to come together. Hiring THE AUTHOR restaurants to salons to fitness own decisions and be in charge of for hourly positions has been a Brooks Speirs is centers – would have to be shut their own futures. This is the age of pain point for the last few years. the vice president down, the walls holding up some entrepreneurial spirit. Now, is a bittersweet opportunity for franchise franchises across the country began Enter franchising. for franchisees as real estate and development at to quite literally collapse. In the Taco John's end, many were forced to shut their doors temporarily. “The brands that survive will But that doesn’t mean we stopped; closing our doors didn’t come out the other end stronger mean closing. It meant enhancing online ordering, leveraging the than before” all-essential drive-thru, adapting our narratives and putting safety Becoming a franchisee is one of hiring options are plentiful. By protocols in place for our future the few ways to invest in yourself pushing our own brands towards reopening. Now, many franchisees and become your own boss without expansion, we will create progress are thriving— comp sales are up putting your future all on the line in our communities as well. It is at Taco John’s, for instance. This and starting from scratch. It is the time to take full advantage. pandemic has tested us. And, the perfect way to continue building a brands that survive will come out legacy for your family. The surviving the other end stronger than before. Franchisors need to seize business concepts Here’s what will power this opportunity. When it comes 3 will be those with franchising beyond this pandemic to marketing your franchise and into a bright future: strong franchisee opportunity, choose words and validation and leading imagery that will appeal to the infrastructure already Former executives emotions and desires potential and business franchisees are feeling right now. in place professionals will The one fact that has already 1 proved certain during this For the first time seek an opportunity pandemic is that not every business to take control of in a long time, will make it. However, that means their careers and leave 2 there will be an that the brands who do survive are a lasting legacy for excess of both available doing something right. their families real estate and There are five key contributing As has become quite apparent in available talent factors that will distinguish brands recent years, and especially the last This pandemic has resulted in with a strong enough infrastructure few months, layoffs can happen at a massive – and unexpected – to make it: thoughtful and talented the drop of a hat. High-performing opportunity for conversions. executive leadership, strong digital employees at all levels can be let go Unfortunately, many good framework, intense fan following, without notice. And, U.S. employees businesses in the retail and robust franchisee support and have reported they feel that restaurant sector have been leading-edge product innovation. channels of communication seem to forced to permanently close. Let’s start with the importance be blurred, transparency constantly But, this presents a very strong of executive leadership. As the seems to be lacking and they have growth opportunity for the overarching decision makers
24 GLOBAL FRANCHISE | ISSUE 5.2 for the direction, advancement with, those they feel passionate These are the questions franchise and adaptation of a brand, these about and those that were able prospects will be asking. Strong are the individuals who make to remain part of their daily brands will have the answers. key decisions in building the lives. Fan following is absolutely COVID-19 has tested every aspect brand, and most recently, make imperative; fans make a brand. of the way we run our businesses, decisions on pandemic response Finally, brands that gave their from communication methods to systems and implementation. franchisees the best support workplace protocols. But, regardless Without this strong core holding through the pandemic – and whose of the challenges it has presented, it a brand together, the rest of the franchisees will validate that to has created even more opportunities infrastructure crumbles. prospects – will thrive. Did you for strengthening our brands in the A digital presence is also critical. pivot marketing quickly enough? long haul. Consumers are more excited App ordering, an online store – Did you make menu updates than ever to get back out into the whatever the case may be, a way as needed? How did you help world and start once again living for consumers to engage with your franchisees reach local consumers? their lives, interacting with the brands brand online or on their phones is What did the brand do to get cars that have become engrained in their integral to making sure we can meet in the drive-thru? Maybe you daily routines. With the perfect balance them where they need to be met. moved quicker than others to of opportunity and eagerness sizzling, I Likewise, a passionate consumer contactless delivery or curbside have no doubt we are entering a pivotal base will get brands through. pick-up, or supported franchisees franchising landscape. Fans are returning to brands that in redesigning their interior layout The only question: who will be at they have the strongest connections to arrange for social distancing. the forefront?
GLOBALFRANCHISEMAGAZINE.COM 25 INSIGHT
Why collaboration is essential to franchising Using set collaboration time to unpack concerns, share franchise resources and acknowledge problems is a great way to be a strong leader
WORDS BY ANGELA COTÉ
he COVID-19 pandemic franchisors, and what better way to the most effective ways to create has hit businesses hard, solve them than to brainstorm with this collaborative culture is to host T bringing up incredible and learn from franchisor peers who monthly virtual sessions with your challenges and struggles. are experiencing the same challenges. franchisees to brainstorm and But during this difficult time, As well as franchisor-collaboration, problem-solve challenges business-owners are also franchisees collaborate with fellow in the business. Topics doing something pretty amazing. franchisees. Again, because the could include dealing THE AUTHOR They have started to reach out to nature of a franchise is based heavily with employee Angela Coté is an on systems, the challenges that each issues, how to get international other businesses and ask: “How franchise growth are you doing?” franchisee faces will be the same more customers, catalyst. You can This uptick in communication as their fellow franchisees, leaving how to deal learn more about Play between businesses is particularly plenty of room to help one another with an upset Bigger at angelacote. evident in the franchising and save time and money. customer, or how com/playbigger community. Franchisors and to better market franchisees alike are realizing The fear of bringing the business. If an extremely important truth: franchisees together you have a large collaboration is essential to Something that I hear often from system, you can business success. franchisors is that they love the break the group up idea of encouraging collaboration regionally for Collaboration is between their franchisees, but they these sessions. the foundation are worried about possible negativity of franchising that could come up through the Collaboration is useful in all kinds of process. I hear you. But there are businesses. It brings people together, far more positives than negatives in saves time and resources, and bringing your 'zees together. creates valuable relationships that For starters, it is better to deal moves a business forward faster. But with negativity than to let it sit collaboration works specifically for and fester. Creating collaboration franchising because franchises are opportunities for your franchisees systems-based. will offer a place to discuss any Franchising is such a unique issues and even show how those business model filled with many negative ideas are unfounded. intricacies because franchisees are As a business leader, it is crucial investing what is often their life to demonstrate the kind of savings into someone else’s business culture you want to create within concept. Franchisees can tend to be your franchisees so using this the judge and jury of the franchisor collaboration time to unpack every day. While it seems in theory concerns before they fester, share like a franchisee would naturally franchise resources and politely follow systems and work hard to acknowledge concerns is a great way grow their business, sadly this isn’t to be a strong leader. always the case. This leads to a lack of performance, which can stem How to cultivate a from missteps in the way franchisees collaborative culture are supported or from franchisees for your franchisees entering the system who were never There are many strategies for a fit. Regardless of the reason, these creating opportunities for your nuances create a lot of challenges for franchisees to collaborate. One of
26 GLOBAL FRANCHISE | ISSUE 5.2 motivated franchisees, you can also celebrate similar wins. HOW TO CREATE A create a Franchise Advisory Council This unique pain point for MONTHLY FRANCHISEE (FAC). A FAC is a group of franchisees franchisors was the driving COLLABORATION SESSION either chosen by the leadership team force behind my new Play Bigger • Communicate the time and or elected by the franchisees who Performance Groups. These purpose of these monthly come together to share ideas and groups are specifically designed to sessions input on initiatives being proposed provide that collaboration between • Decide on a series of topics • Start the session by by the head office. franchisors that they create for their clarifying the purpose and Creating a FAC is a great franchisees. So everyone can be desired outcome opportunity to give all franchisees experiencing the immense value • Have everyone write in the a voice, get valuable franchisee that comes from leveraging the chat what they want to get insights on decisions made by collective wisdom, experience, out of the call head office, and build camaraderie and energy of a group. • Break the ice with some between franchisees. You’re at a casual questions competitive disadvantage if all the • Start working through the Why collaboration thought leadership comes from the topics works • Have everyone share an top. The most successful franchisors Collaboration is the foundation action step they took from understand that franchisees have of business, and as I have laid out the session valuable insights about the front in these steps and strategies, it is • Send out the key takeaways lines of the business. certainly essential to franchising. from the session And if you still don’t believe me, let Collaboration is not me leave you with a final example. If your franchisees respond well just for franchisees When have you been most successful to the collaboration sessions, or if As the daughter of the founder and happy in your life? Not you already have some engaged, of M&M Meat Shops, an iconic specifically in business, but in your Canadian franchise company day-to-day life? If we all think hard which we grew to almost 500 units, on that question, I think we will all I had lots of opportunities to learn come to a similar conclusion. about collaboration. A line that We are most successful in our stood out that my dad always said lives when we are happy and thriving was: “In franchising, you are in our relationships with others. missing out if you don’t leverage Whether that be with our families, the collective wisdom and energy our employees, our co-workers, or of the franchisees.” even just when you have a great I love the quote and I use it often. conversation with that lady who But what really has stuck out to me you go to yoga with. Conversations, is the fact that it points out that teamwork, and collaboration with the franchisees in a business are others is how we achieve success a collective. But what about the and happiness in all areas of our franchisor? Franchisors have this lives. That is why franchisors unique position where they are need collaboration. alone at the top of the pyramid whereas franchisees have each other to bounce ideas off of, share problems, and
GLOBALFRANCHISEMAGAZINE.COM 27 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 28 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Xponential Fitness
AT A GLANCE XPONENTIAL FITNESS The evolution Established: 2017 Number of franchised outlets: 1500+ Brands: of fitness Club Pilates, CycleBar, StretchLab, Row House, Pure Barre, YogaSix, AKT, STRIDE Location of units: U.S., Canada, Japan, South Korea, Australia, Saudi Arabia franchising Contact: John Kersh, [email protected] xponential.com Xponential Fitness is at the forefront of multi-brand fitness franchisors venture, Club Pilates, in March 2015. Once again, he set his sights on fast growth through franchising a concept with a strong product. In the five ith eight prominent THE ORIGINS OF years since acquiring the brand, Club boutique fitness brands XPONENTIAL FITNESS Pilates has grown from a handful of in its franchise portfolio According to John Kersh, chief W locations primarily around Southern and close to 1,600 studios international development officer California to a global player with over open in five countries, Xponential for Xponential Fitness and a 25-plus 600 locations open in the United Fitness is one of the world’s largest and year veteran of the fitness industry, States, Canada, Japan, South Korea, fastest-growing franchise brands. With the company has the good fortune Saudi Arabia and soon to be in Europe household names like Pure Barre and of strong strategic vision and great and Latin America. Club Pilates, its brands are category- timing. “The founder of Xponential But Geisler saw an even bigger leading franchisors, but with all brands Fitness, Anthony Geisler, was one of opportunity as he began to grow the combined under the banner of parent the pioneers in boutique fitness with Club Pilates brand. What happens, he company Xponential Fitness, the the brand LA Boxing, which he grew wondered, after all of the available company is at the forefront of multi- from a single studio in Costa Mesa, franchise territories for Club Pilates brand franchisors. California in 2002, to a national U.S. are sold out in the United States? How But how did a single company brand that he eventually sold to UFC could he continue to grow and create become such a franchising powerhouse Gym in 2012,” says Kersh. “Today, new opportunities for his company in less than three years, with pioneering Anthony is fully-focused on being the and his franchise owners? From this boutique fitness brands including world’s largest and most influential question, Xponential Fitness was born Pure Barre, Club Pilates, CycleBar, boutique fitness franchise company.” YogaSix, AKT, StretchLab, Row House, After a brief post-exit break, Geisler as a platform that enabled Geisler to and STRIDE? acquired his next boutique fitness launch a collection of complementary boutique fitness concepts in underdeveloped modalities through a proven franchising strategy. Xponential Fitness LLC was formed in September 2017 and quickly announced the acquisition of its second brand, the group indoor-cycling leader CycleBar. Over the course of the next 18 months, Xponential Fitness went on an acquisition spree, adding up-and- coming fitness concepts in modalities that did not yet have a market leader, including stretching (StretchLab), rowing (Row House), dance (AKT), yoga (YogaSix), and running (STRIDE).
PURE BARRE ACQUISITION PUSHES STUDIO TOTAL OVER 1,000 In late 2018, Xponential Fitness announced its purchase of Pure
GLOBALFRANCHISEMAGAZINE.COM 29 BEHIND THE BRAND: PARTNER CONTENT
franchise owners of their own brand. STRENGTHENED BY THE “Boutique fitness is still With all of the brands being located GLOBAL PANDEMIC under the one roof at the Xponential Xponential Fitness opened its 1,500th in its infancy, which Fitness headquarters office in Irvine, studio in early 2020, just as the offers a sizable, long California, there is a great sense COVID-19 pandemic hit the United of collaboration and camaraderie States. Facing the imminent shutdown term opportunity for the between teams, along with some of most of Xponential Fitness’ studios friendly competition. across the country, Geisler was not Xponential Fitness brands” intimidated by the challenge: “We EXPANSION TO looked at it and we said, do we want to Barre, one of the early innovators in boutique EUROPE, ASIA, AND close the stores, stop billing everybody fitness, founded in 2001. This acquisition THE MIDDLE EAST and sit idle, or do we want to fight our way through the storm? The quick dramatically increased the Xponential Fitness Having made inroads into neighboring answer was: let’s go fight the fight. footprint, adding more than 500 Pure Barre Canada with Club Pilates and Pure Let’s get back to the market first. studios into its family of brands, and bringing Barre, Xponential Fitness began its Let’s switch people to virtual so we its total number of studios to more than 1,000. overseas expansion in a big way in can keep them engaged. We believe it With every acquisition, Geisler and 2019, signing master franchise deals will allow us to sustain the business Xponential Fitness made sure each brand for Japan, South Korea, Singapore, and during this time, but also get back into had the resources and teams to successfully Saudi Arabia. The company also signed the market quickly.” support their own franchise owners. As a milestone agreement to develop As a result of Geisler’s decisive opposed to a centralized approach, every the German and Austrian markets in position, Xponential Fitness made a Xponential Fitness brand has a president, collaboration with the LifeFit Group, fast pivot and launched its online ‘GO’ operators of more than 75 Fitness a chief marketing officer, a director of platform, offering live and recorded First studios in the market, as well as education, a national sales director, and classes for the members of every license holders for Barry’s Bootcamp other key roles focused entirely on the brand, as well as local franchises and several other fitness concepts. teaching virtual classes across the The agreement with the LifeFit country. Months earlier, the company Group includes the rights to develop the Club Pilates and Pure Barre brands in Germany and Austria, as well as other Xponential Fitness brands in the future. The German market is the second-largest fitness market in the world behind the United States, and German consumers value quality and consistency; something the collaboration between the two experienced players is sure to deliver on. Xponential Fitness views Europe as its highest priority expansion market. According to Kersh: “The European fitness market continues to grow and diversify, with everything from low-cost options to traditional big-box gyms. Boutique fitness is still in its infancy, which offers a sizable, long term opportunity for the Xponential Fitness brands.”
30 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - XxxxxxxxxxxXponential Fitness GLOBALFRANCHISEMAGAZINE.COM 31 GLOBALFRANCHISEMAGAZINE.COM In many ways, the move toward toward the move ways, In many and beyond, Looking ahead to 2021 and global European “Further United States has continued to climb, has continued States United fitness- more become have members looking increasingly are and savvy gyms traditional options beyond for Boutique fitness centers. and leisure small, instructor- with their studios, size, facility comfortable led classes, a are of community, sense and strong consumers. option for perfect evolution boutique studios is a natural the much like of the fitness industry, business of the restaurant movement segment. the fast-casual toward efficient fitness centers more Smaller, for not only proposition value a offer franchise but also for consumers, offer Boutique fitness studios owners. no initial investment, low a relatively or spoilage and no food inventory, importantly, health inspections. Most the Xponential Fitness studios business revenue a recurring feature consistent provides which model for cash flow and predictable something Geisler owners; franchise to ago years implemented many opportunity his franchise differentiate within the industry Xponential Fitness plans to continue and is into Europe its expansion qualified for searching actively in its brands to develop partners Spain, and Italy, France, the U.K., in addition to the German market well- has a already the brand where established partner. for focus is a major expansion years Xponential Fitness in the excited “We’re Kersh. says ahead,” to satisfy well-positioned to be of fitnessthe changing interests and to have worldwide, consumers for an amazing lineup of brands to choose from owners franchise fitness categories.” key across
For its franchise owners, the move owners, its franchise For highlighted has The pandemic pivot is on successfully the focus Now, Over the past decade, as fitness Over Asia and the participation in Europe, THE FUTURE OF FITNESS THE FUTURE OF FITNESS to digital enabled Xponential Fitnessto digital enabled Xponential to existingvalue to continue offering also generatingwhile members a albeit at revenue, membership Recognizing the need level. reduced provide to ways find to quickly franchise for relief additional financial a 50 Xponential introduced owners, in its marketing cent reduction per 20 on retail; shipping free fund fee; and absorbing all cent off retail, per associated and fees costs transaction Vendor purchases. with gift card sales, marketing, concessions across were equipment and lending partners using the owners for also negotiated of network of Xponential’s weight studios. 1,500-plus and nimble the creative just how need to be, findingXponential brands revenue alternative to generate ways owners, franchise their for streams and awareness and maintaining brand competitive during a digitally loyalty the fitness industry. time for reopening studios with what has “The X to as been referred recently operations, – sales, marketing, Factor” have members and scale. Many back to get eagerness their expressed as soon as studios workouts to their thestart to open back up, perhaps best sign of Xponential choosing to the storm. weather fight the fight and had purchased a production studio a production had purchased able towas It just this purpose. for and quickly the project accelerate owners franchise launch to support lost suddenly who and consumers studios. nearby access to their INTERVIEW
“I KNEW THAT AT SOME POINT WE WOULD EMERGE FROM THE SHADOWS OF THIS DREADFUL VIRUS”
INTERVIEW BY JAMES FELL
Rik Hellewell, managing director of Ovenu, walks Global Franchise through how he has led his international franchise through the instability and turbulence caused by the coronavirus crisis
ik Hellewell has a positive, “For there even to be a possibility that it Hellewell spent planning and preparing no-nonsense approach to both could sweep everything away, when you have for the time that his franchisees would be R life and business but there’s a worked for as long and as hard as I have, was welcomed back into their clients’ homes. detectable strain in his voice extremely stressful.” “I’ve always felt a responsibility for my when he begins to reflect upon the huge However, the current situation appears franchisees,” he explains. “This was an challenges of the past few months. much brighter compared with those exceptional situation, but all I knew was that He admits that, since founding oven dark days of March, with more than 100 at some point we would emerge from the cleaning franchise Ovenu 26 years ago, franchisees across the U.K. and 30 in shadows of this dreadful virus. he has never had to deal with anything Australia having resumed trading. “This thought kept me going: planning, as serious as the business entering a “The majority have been pleasantly preparing and pulling out all the stops to period of stasis. surprised by the amount of work they have support the franchisees to return to work; to “It has been excruciating,” Hellewell tells on their books since reopening and some are keep them and their clients safe and ensure Global Franchise. “I set up Ovenu back in 1994, even considering taking on sub-contractors they got as busy as possible as quickly as just as we were emerging from recession to cope with the demand.” possible, and this we have achieved.” and I managed to successfully trade through During the weeks before the U.K. the financial crash of 2007/08, but I had no Safety-first approach lockdown, as fears over the spread of experience of how to deal with the fall-out Much of the groundwork for this bounce infection grew, Hellewell was bombarded by from a global pandemic. back is down to the many hard weeks concerned franchisees asking him to supply
32 GLOBAL FRANCHISE | ISSUE 5.2 personal protective equipment and hand sanitiser to allow them to continue working. However, that abruptly stopped on March 26 when U.K. chancellor Rishi Sunak announced additional support for the self-employed, allowing them to claim 80 per cent of their monthly income, up to a maximum of £2,500. As most franchisees were self- employed and, in the face of a growing number of client cancellations, they opted to mothball their businesses and take up the offer. This, Hellewell says, was set against a background of a confusing government message over who could and could not continue to work. “Cleaning wasn’t on the list of prohibited occupations, but several franchisees believed they were unable to work as they did not appear on the government’s list of key workers whose children were able to continue to go to school,” he says. “However, I do believe that it has created a much stronger was morally right to temporarily bond within Ovenu.” “Although this has been close the Ovenu franchises, Rik reduced his franchisee simply to keep everyone safe and I management fees but only dropped an experience I never wish know it was a concerning time for the national marketing fees to 75 per everyone involved.” cent – ensuring he could quickly turn to repeat, I think it has on the taps as far as marketing and highlighted the importance “I had no sales support was concerned. He invested in Google Ads, of communication and experience of how improving franchisees’ individual web pages, produced client underlines the benefits of to deal with the newsletters, and increased public relations activity. the franchise model” fall-out from a He said: “All this activity was invaluable and helped engage the that – apart from some expected global pandemic” franchisees and kept their clients retirements – most chose to remain informed and raised confidence as we with Ovenu. were able to communicate the safety He believes now that the challenge Digital pivot procedures we had in place.” over the coming weeks and months is to During the lockdown, his priority Hellewell was also able to improve raise the confidence of clients. was to keep the franchisees active the morale of the franchisees by May “A lot of people are grateful that we are and engaged and to do this he began – passing on statistics based on a open and providing a service but some, hosting regular Zoom meetings. rising number of client telephone and understandably, remain cautious and are “We all worked together to share email enquiries. This gave them the telling us that while they do want their knowledge, best practice and any confidence to return to work knowing ovens cleaned, they would rather wait useful information that would support there was a demand for their services. a few months,” he says. “It’s not the fact the franchisees and their businesses With income at a standstill, he they haven’t got the money, or no longer through this extended period of was able to negotiate a reduction want to use our service, it’s just coming to inactivity,” he says. “We also published in some costs, adding: “Some of our terms with a new reality. useful information on their internal suppliers understood our plight and “I’m confident this caution will intranet and forum, which encouraged were able to be flexible while others recede as more people become used to them to focus on Ovenu and the just weren’t in a position to offer ‘the new normal’ but everyone does need way forward. a discount. to keep their guard up to prevent any “We have had plenty of examples “I got a few quid from a local fresh wave of infection. of franchisees using the time wisely, government grant and that was about “Although this has been an experience everything from developing a long- it, in the main it was a case of having I never wish to repeat, I think it term business strategy to improving to grin and bear it. I couldn’t furlough has highlighted the importance of the content on their client myself because I was working six days communication and underlines the Facebook sites. a week to keep things going.” benefits of the franchise model – which “This is one of the huge positives to During this time, he was also means individual business owners don’t emerge from the pandemic and I plan dealing with the added complexities of have to face something as monumental to continue the Zoom meetings, as it contract renewals and was delighted as this on their own.”
GLOBALFRANCHISEMAGAZINE.COM 33 Listen to titans of the industry on-the-go
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@globalfranmag Global Franchiseglobalfranchisemagazine.com Global Franchise Magazine G globalfranchisemagazine.com GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 35 EUROPE FOCUS EUROPE IN FOCUS
Franchises are finding unrivaled success when bringing their concepts to this prosperous continent, but as always, preparation can be the difference between dramatic growth and possible stagnation. Here are the stats, trends, and essential information you need to succeed
REPORT BY KIERAN MCLOONE
36 GLOBAL FRANCHISE | ISSUE 5.2 France: Europe’s leading franchise market As one of the strongest economies in the world, France is a perfect introduction for international franchisors looking to enter Europe
FRANCE IN NUMBERS Population: 66 million Size: 547,030 sq. kilometers GDP: $2.79tr Franchise market value: $69.94bn
enowned as having a per cent of international brands within which states that disclosure must rich cultural tradition the country. be provided by the franchisor at R and for producing some In fact, McDonald’s – one of least 20 days prior to the signing of the world’s most the most recognizable American of any documents or payment of beloved artists, France is also the franchise brands – has found any funds. Failure to comply with European hub for franchising, on France an especially rewarding this law can result in a contract account of the country’s strong market. With over 1,200 French becoming void, and will require economy and its unfaltering locations, France is McDonald’s’ the franchisor to compensate the embrace of the business model. largest market outside of the States. franchisee for any fees incurred.
From strength Overcoming adversity Vive la franchise to strength All this being said, France can Approached correctly, France can France’s history with franchising still present some challenges to be a hugely successful market for stretches back many decades, with international franchisors who cross any franchise brand. The most the French Franchise Federation the North Atlantic unprepared. common method of franchising being founded in 1971 to advocate for “France has some of the highest from an international perspective is sustainable, healthy development fiscal taxes in the world,” says a single, national master franchise within the industry. The franchise David Borgel, area director Europe agreement, because while the industry almost doubled in recent for Franchise World Link, an country may be more than double years, with the 1,228 franchises international franchise consultancy. the size of somewhere like the U.K., existing in the country in 2008 He adds: “In general, French people the French railway network allows growing to 2,004 by 2018. are not fluent in English, which for seamless logistics. The French franchise industry could be an issue when trying to And while the entire country has has naturally grown financially, to find good investors.” strong potential, Paris, where 70 now represent revenues of around France also has a very high hourly per cent of the country’s decision- $69.94bn, and employ over 700,000 labor cost of €36, compared to €35 making is said to take place, should people, both directly and indirectly. in Germany and €27 in the U.K. be the prime target for incoming French franchises make up the This sometimes means that food brands: “When you find a premium majority of the market, with only seven franchises close from 2pm until location in Paris, you could be per cent of businesses in the country 7pm, to avoid paying wages during profitable with whatever you’re originating from abroad. Of that relative downtime. selling, because the purchase power minority, the U.S. has the highest slice Then there’s Doubin Law that is high and there is always large of the French market, representing 22 franchisors must comply with, demand,” says Borgel.
GLOBALFRANCHISEMAGAZINE.COM 37 EUROPE FOCUS
Poland: Europe’s growing franchise underdog While it may not be an obvious franchise market, Poland still presents many benefits to European-bound international investors
POLAND IN NUMBERS Population: 37.97 million Size: 312,679 sq. kilometers GDP: $585.7bn Total number of franchises: 1,310
he franchise industry has grown exponentially and now, says Andrzej Krawczyk, founder in Poland is often according to the Franchise Market and managing partner for ARSS, a T described as “mature, Report 2019/2020, there are around franchise consultancy specializing in yet growing”, due to 1,310 franchise networks in Poland, helping Polish development. its many established systems and with 83,000 unique franchisees. Krawczyk continues: “The simultaneous opportunity for the foreign franchisors wishing to right kind of international concepts Understanding enter the Polish market tend not to carve out a dedicated section of local flavor to notice that in most cases their the market. While international brands have brands are not known to the It’s a region that unmistakably undoubtedly found success in average Polish customer, their skews toward home-grown Poland, the market is dominated by product range and its pricing are not concepts, with eight out of every local chains that appeal directly to adjusted to Polish customers’ 10 franchise brands in the country the preferences – and budget – of needs and purchasing power and, being of Polish origin. However, this Polish consumers and franchisees. last but not least, the cost associated shouldn’t dissuade international This includes brands like Zabka, a with the payment for the franchise brands from testing Poland’s Polish convenience store franchise fees and to finance the initial receptive market; some of the that’s one of the largest Polish investments is too high for country’s very first examples of brands, with over 6,000 locations. potential franchisees.” franchising came in the form of Examining exactly why Poles global names such as McDonald’s, choose Polish brands over Adapt and thrive Adidas, and Jean Louis David international ones can lay the All that being said, Poland remains opening Polish locations in the groundwork for a solid, researched a more than worthy territory for early 1990s. market penetration plan. “The savvy brands willing to adapt Of the 20 per cent of the Polish most significant problem that their concept for the local market. franchise market made up by international franchisors meet in Poland has its own trends dictating foreign brands, the most popular their attempt to establish their the business landscape which, if systems come from the U.S., networks in Poland is the shortage catered to, could result in domestic Germany, or France. So while of potential franchisees with, firstly, popularity and successful growth. there's certainly a European slant sufficient capital resources to pay For example, online sales and to Poland's franchising preferences, the franchise fees and to finance the delivery have been a nationwide U.S.-based concepts shouldn't initial investments; and secondly, favorite even pre-COVID, and it’s overlook the potential for growth. the required management expertise popular for grocery stores to offer Since the early 90s, the industry and knowledge of franchising,” delivery or pickup.
38 GLOBAL FRANCHISE | ISSUE 5.2 United Kingdom: Europe’s youthful, emerging region International franchisors should take advantage of the U.K.’s absence of a language barrier
U.K. IN NUMBERS Population: 66.65 million Size: 243,610 sq. kilometers GDP: $2.38tr Franchise market value: $21.5bn
espite its comparatively In fact, over half of franchisees in That being said, testing the waters small surface area when the U.K. declare an average annual is always encouraged: “We would D positioned next to the turnover of over £250,000 (around strongly recommend, regardless of rest of Europe, the U.K. $312,740), and the franchise industry’s the style of franchising, that a U.K. has a surprisingly deep and intricate overall revenue has grown by almost pilot is run and remains as a testbed relationship with franchising. Both 50 per cent over the last decade. for developments,” continues Price. domestic and international brands For proven concepts that have managed to thrive in Blighty, generate sustainable revenue, the Reliable, regardless and as a result, the country’s youth potential for rapid growth is likely, Incoming businesses may still be are hopping on board the franchising as 35 per cent of franchisees in the apprehensive about the potential train: currently, around 18 per cent of U.K. currently run multiple units; impact that Brexit will have on franchisees in the U.K. are under the a seven per cent increase since franchising in the U.K., but the age of 30. the survey was last conducted general consensus is that the If you’re looking for a vibrant in 2015. The United Kingdom’s separation from the EU is unlikely international market where franchising demographic is also a to affect the laws that impact innovation is being driven by up- rich and diverse one, with 65 per franchisors within the country, and-coming entrepreneurs, and the cent of people employed within the despite the fact that most of the native English-speaking consumers industry being female. U.K.’s laws are based on those of the present zero language barrier European Union. for most Western concepts, then Tackling the market As always, international this could be the ideal country for The most common approach brands should conduct thorough European expansion. international brands have when research into the specific factors franchising in the U.K. is with a that affect them in this unregulated From strength straightforward master licensing market, and perhaps consult to strength agreement: “The majority of large with the bfa for specialized According to a 2018 study by the international brands operating in information: “The bfa often speaks British Franchise Association the U.K. do so with a strong master with international franchisors in (bfa), franchising contributes more licensee,” says Emily Price, chief their due diligence stages for the than $21.5bn to the U.K. economy, operating officer of the bfa. “We U.K.,” says Price. “The bfa’s code and employs over 710,000 people. see this working best when the of ethics and standards provide a profitability, and less than one per international franchisor has an open fantastic guide for what an ethical cent of franchisors closing per year mind to be flexible and amenable to business format franchise model due to commercial failure. regionalizing the model.” should look like.”
GLOBALFRANCHISEMAGAZINE.COM 39 EUROPE FOCUS
Switzerland: Europe’s ideal testing ground Located in the heart of Europe, the Swiss franchise market is ideal for businesses dipping their toes into European expansion
SWITZERLAND IN NUMBERS Population: 8.57 million Size: 41,290 sq. kilometers GDP: $369.9bn GDP per capita: $46,200
witzerland is one Switzerland, you get your coffee impede immediate growth. of the handful of differently. In Zurich, in German- For example, the need S European countries speaking Switzerland, you may for translation between that is completely want a ‘Kafi Creem’. In Lausanne, Switzerland’s various languages landlocked, being surrounded by in French-speaking Switzerland, can drive up costs, and even Italy, France, Germany, Austria, you take a ‘Café américain’ or lead to misunderstandings or and Liechtenstein. While the lack a ‘Café double’ and in Lugano, discrepancies between consumers of ports may appear a challenge in Ticino, in Italian-speaking and a brand, or even franchise from a distribution standpoint, the Switzerland, you order a ‘Caffè partners and a master franchisee. unique positioning of the Swiss espresso’ or simply ‘Caffè’,” says In the case of a disagreement, Swiss market actually makes it one of the Thomas Matla, partner at Bellone courts also tend to favor the weaker most appealing for international Franchise Consulting GmbH. party, which is often the franchisee. franchisors that want to trial “Due to the multilingualism and “Looking at Switzerland from their concept in a multitude of the associated different cultural abroad often makes it look like environments, with relatively little characteristics and demands, an easy-to-control cliché,” says distance in-between. franchise concepts in Switzerland Veronika Bellone, a partner at The modest Swiss population of can be tested on the one hand Bellone Franchise Consulting 8.57 million people speak four main for their quality, presentation, GmbH. “However, this is not the languages: German, French, Italian, and internationality, and on the case. Switzerland, like all European and Romansch. Of those four, other hand for their very specific countries, is a competitive market. German is the most widely spoken, ability to expand abroad. All that, That is why international franchise and this is reflected in the country’s on a limited budget and in a small systems that want to expand from market, with German brands space; all three language regions here should definitely look for performing particularly well among can be easily reached by train or partners with market knowledge.” Swiss consumers. car within one day.” If overcome, these challenges appear negligible next to the Coffee or caffè? Caution is advised opportunity the Swiss market That being said, a variety of Despite the useful multiculturalism presents. There may be fewer products could succeed in any one of Switzerland, and the fact the people spread across the country’s of Switzerland’s divided regions; it country has one of the highest GDP surface, but the higher GDP per all depends on whether a business per capita in the world at $46,200, capita outweighs the downsides has done its research. franchisors shouldn’t ignore the of marketing and communication- “Depending on where you are in potential challenges that can related costs.
40 GLOBAL FRANCHISE | ISSUE 5.2 Turkey: Europe’s gateway to the Middle East Franchisors would do well to harness the many benefits of the anchor of Southeastern Europe
TURKEY IN NUMBERS Population: 82 million Size: 780,580 sq. kilometers GDP: $1.14tr Franchise market value: $43bn
hile franchising was vibrant economy. of Istanbul’s popular Be My only introduced Franchise Expo. “In addition, to Turkey when A track record of Istanbul welcomes millions of W McDonald’s opened foreign investment tourists every year as well as a its first Istanbul location in 1985, According to the Turkish significant number of visitors, you’d be forgiven for thinking Franchise Association (UFRAD), not only for holidays but also for the business model has always there are approximately 3,000 exhibitions and symposiums of been a part of the country’s different franchise brands various topics.” infrastructure. An exponential currently operating within the rise in the popularity of Turkish country – 36 per cent of which The start of franchising, both for international are of international origin. On the something big as well as domestic brands, has opposite end of the spectrum, The upward trajectory of Turkey’s positioned this country as a around 120 Turkish brands have franchise industry is one of surprising frontrunner when it managed to thrive well enough the main appeals for international comes to European development within their home market to franchisors, and positions and beyond. expand internationally. the country as one-to-watch for There are undoubtedly some From 2013-2018 the number burgeoning franchisors as we key cultural differences that of franchisors in Turkey tripled, enter a new decade for franchises must consider, such as helped in no small part by the business development. 99.8 per cent of the country $180bn in foreign investment The GDP per capita for the being of Muslim faith, but this Turkey has received over the last country, for example, has more hasn’t stopped some of the 15 years. Franchising brings in than tripled over the past decade biggest Western names around $43bn for the country, and now sits at around $15,200. finding immeasurable success with the city of Istanbul being The country’s population, within Turkey. the focal point for much of this meanwhile, is staggeringly young, Burger King, for example, activity. with over half of Turkey being opened its first Turkish restaurant “As well as being the most under the age of 30. in 1995, and now has more than populous and busiest city in “Turkey has a young population 600 locations throughout the Turkey, Istanbul is the center of where the average age is 32," says region. This surpasses even the all national and regional trade and Erem. “Therefore, those who invest golden arches themselves, with distribution channels,” explains in Turkey today will have the McDonald’s currently operating Özhan Erem, founder of EREM upper hand in their future around 200 locations in this dense, Media Group, and organizer business endeavors.”
GLOBALFRANCHISEMAGAZINE.COM 41 EUROPE FOCUS
Spain: Europe’s historical franchise hotbed Spain presents a popular European market for international franchisors, both from the EU and beyond
SPAIN IN NUMBERS Population: 46.94 million Size: 504,782 sq. kilometers GDP: $1.419tr Franchise market value: $34bn
deeply historical Spain’s journey with franchising Spanish market often opt for country steeped in may have begun with retail, but the regional master formula, Roman heritage, Spain the food industry is now by far diving the country into four A is one of Europe’s key the biggest sector in the country, geographical areas.” franchise markets due in part to with a yearly turnover of $9.03bn. When it comes to challenges its openness to foreign brands, This sector also employs the within the market, Barbadillo which are equally as valued as the most people at 66,878, followed is clear: “The main challenge country’s home-grown concepts. by hospitality at 36,910, and then for a foreign franchisor is to The country is currently home restaurants/hotels, at 23,103. adapt its business model to the to 1,381 brands, according to the Overall, the Spanish franchise characteristics of the internal Spanish Franchise Association, industry employs upwards of market. This isn’t exclusive and the franchise industry has 294,231 people; a figure steadily to the Spanish market, but it a turnover of roughly $34bn. Of growing by around 0.13 per cent remains a pending issue for most those franchise businesses, 249 year-over-year. foreign franchisors who intend to are of foreign origin, with the transplant their business directly, majority coming from France (56), Do your homework without paying any attention to followed closely by the U.S. (46). The The methods that brands use to local adaptation.” market has a rich cultural diversity successfully franchise throughout Finally, while it might seem that extends beyond these two Spain can vary depending on the like the primary Spanish cities frontrunners, however, with the rest industry and origin of a business, of Madrid and Barcelona are of the international brands coming but as always, preparation is the natural priorities for incoming from 26 different countries. most important aspect when brands, with populations of gauging if this market is best for 5.5 million and 4.9 million, Historically successful your brand. respectively, Barbadillo advises Spain’s history with franchising “The most common method that other targets could pay off: dates back to 1957, when French of franchising for foreign “The potentially most important clothing retail brand Rodier first franchisors is the master markets, by far, are obviously opened in the country. The Spanish franchise format,” says Santiago Madrid and Barcelona, but areas Franchise Association later formed Barbadillo, founding partner such as the region of Valencia in 1993, and now analyzes the and CEO of Barbadillo y or cities such as Bilbao, Seville market on a yearly basis while Asociados, a Spanish franchise or even Zaragoza or Malaga, providing essential information to consultancy. “However, British are markets with high levels of Spain’s many franchise networks. franchisors seeking to enter the franchise implantation.”
42 GLOBAL FRANCHISE | ISSUE 5.2 Italy: Europe’s middle-class renaissance Despite much of Italy’s franchise activity focusing on cities like Rome or Milan, businesses can succeed anywhere in the country
ITALY IN NUMBERS Population: 60.36 million Size: 301,230 sq. kilometers GDP: $2.08tr Franchise market value: $32.5bn
talian franchising in Europe, following Spain, making up 18 per cent. However, actually has a very Germany, and France. in 2016, the food segment brought I specific birthday, Most of Italy’s franchise in revenue of more than $9bn, according to the networks can be found in the which represented 32.2 per cent Italian Franchise Association. On wealthier North, and franchise of the total annual turnover for September 18, 1970, a large-scale locations are primarily situated in that year. distribution company, the ‘Gamma city centers and shopping malls, The market is also di’, launched 55 stores throughout typically in large cities such as considerably youthful. Almost Italy, which were to be managed by Rome or Milan. 90 per cent of franchisees in the a dozen affiliates. Thus, franchising The Lombardy region of Italy, country are aged between 25 was brought to Italy’s shores, and located in the northwest, brings in and 45 years old, according to has since grown into a thriving the most of Italy’s total franchise the Italian Franchise Association, industry providing employment, turnover at 16.5 per cent. and low investment costs profits, and exponential succes Franchisors shouldn’t are one of the key motivators exclusively aim for cultural behind Italy’s continual growth: Always improving hotspots like Rome, as Italy has a 34.3 per cent of investments To date, the Italian franchise thriving middle-class demographic don’t exceed €20,000, which market is worth around $32.5bn, that support sophisticated goods equates to around $22,794, which is a 17 per cent increase and services all over the country. making franchising more across the past decade. Across This ensures the success of approachable than ever. this same period, foreign savvy businesses in smaller cities “Franchising is confirmed as investment in Italy through that have showcased exemplary an increasingly growing and franchising has increased by adaptability, with stores in attractive sector, even for the as much as 35.8 per cent. It's airports or train stations being just youngest who are entering the undoubtedly an industry on as viable as the usual high street world of work for the first time,” the rise. and shopping mall locations. says Augusto Bandera, secretary Domestic brands still occupy general for the Italian Franchise a large majority of the market, Diverse by design Association. “The growing however, and of the 961 franchise The Italian franchise market is demand and the emergence networks that existed in Italy in diverse in several senses of the of new formats are a symptom 2018, 861 were of Italian origin. word; service franchises are the of a system that works and This figure positions Italy as the most common at 25 per cent of inspires confidence thanks to the fourth largest franchise market businesses, with food brands only reduced business risk.”
GLOBALFRANCHISEMAGAZINE.COM 43 EUROPE FOCUS
The Netherlands: Europe’s affluent transport hub The established Dutch logistics network provides tried-and-tested systems for incoming franchisors
THE NETHERLANDS IN NUMBERS Population: 17.28 million Size: 41,526 sq. kilometers GDP: $913.7bn Franchise market value: $43.19bn
he Dutch economy 2019, which is more than 10 per the franchisor and franchisee. This has always been cent higher than the previous covers the pre-contractual stage, T heavily dependent on year. Dutch franchising brings in a what happens during the term of foreign trade, with turnover of $43.19bn, with a high the franchise agreement, and the Rotterdam being Europe’s largest GDP per capita of $53,024. post-termination stage. In all these port by volume. This means that the The focal point for franchisors stages, parties must be compliant Netherlands has arguably Europe’s is the Dutch capital of Amsterdam, with the new legislation.” best logistics and distribution with 742,000 inhabitants, but The “For both existing brands and network, which is why the country Hague and Rotterdam are also viable international brands looking to is often known as Europe’s primary locations for a franchise to open shop. penetrate the Dutch market,” transport hub. The primary language spoken explains Lisette den Butter, a lawyer Not only does the Dutch logistical throughout the Netherlands is at Bird & Bird, “it is important to framework ease the burden of Dutch, but as mentioned, there is a note that franchisees established transporting goods and materials strong grasp of English nationwide, in the Netherlands can invoke the around the Netherlands and across and German and French are also protection of the Dutch Franchise the world, but it means the country spoken widely. Act, regardless of the choice of has a natural predisposition for law in the franchise agreement. global-spanning franchise concepts. Legislative overhaul Contract clauses contrary to the In fact, 80 per cent of the country’s The Dutch Franchise Act has been Dutch Franchise Act will not be GDP is generated by foreign goods on the table for quite some time, enforceable or may even be void.” and services, and the U.S.’s trade and is now likely to come into effect The intricacies of the Dutch relationship with the Netherlands on January 1, 2021. For franchisors Franchise Act mean that seeking is the country’s oldest bilateral both domestic and international, local and knowledgeable counsel continuous relationship, dating an understanding of this new is a must, but as an overview, back to the American Revolution. legislation is crucial for success. new guidelines mean that the As a result, the Netherlands has a “The impact of the Dutch franchisor/franchisee relationship with a high regard for U.S. products Franchise Act is considered to becomes more of an equal one. This and the highest level of English- be substantial, in particular for involves a cooling-off period of four fluency on the continent. franchisors,” says Roelien van weeks and, in certain cases, the Neck, a lawyer at Bird & Bird, an need for written consent to make The big picture international law firm. “The Dutch changes on the franchisor’s behalf Taken at a glance, there were 921 Franchise Act governs aspects of all protecting the best interests of all franchises in the Netherlands in stages of the relationship between parties involved.
44 GLOBAL FRANCHISE | ISSUE 5.2 Portugal: Europe’s hidden gem It may not be Europe’s largest franchise market, but Portugal shouldn’t be overlooked for international expansion
PORTUGAL IN NUMBERS Population: 10.28 million Size: 92,391 sq. kilometers GDP: $240.7bn GDP per capita: $23,407
t may not be the the majority of the Portuguese introduced a range of tax benefits strongest of all the franchise market at 53 per for both EU and non-EU citizens I European countries, cent, but foreign investment which made attaining residency but Portugal is still is still prevalent, with Spain quick, easy, and financially an attractive franchise market accounting for 17 per cent of the lucrative. The country also has a brimming with possibilities. market, followed by the U.S. at top-tiered tax rate of 48 per cent, Couple this with the country’s 9 per cent, comprised of around which tends to be lower than attractive economic condition 40 brands. elsewhere in Europe. that has made it an appealing Despite not making up Not only does this make destination for investors and a complete majority of the Portugal a great place to retire retirees alike, and you’ve got a market, the U.S. has some deep once you’ve come to the end of region that definitely shouldn’t ties to Portugal that make the a long franchising career, but be ignored. country a natural development it’s a win-win for franchisors: step for States-side brands. the Portuguese market is full of Strong track record The U.S. is Portugal’s largest consumers who are both Franchising was first introduced trading partner outside of the affluent, but also hugely to Portugal in the 1980s, when EU, for example, and according international. Brands attempting large international brands began to U.S. Census data, Portuguese to introduce their foreign opening locations throughout the customers purchased concepts into the domestic region. The Portuguese Franchise approximately $1.46bn worth market will be met with an Association was later founded of U.S. goods and services engrained brand awareness, in 1987, but the business model in 2018. thanks to Portugal’s diverse and really came into its own in the globe-spanning demographic. 1990s, when domestic brands A hotbed of foreign So just because Portugal’s grew large enough to begin investment franchise market isn’t as competing with the sizable foreign Portugal was hit hard by the vast as some of the others concepts. financial crisis of 2008, but in this continent, don’t write Since then, franchising thanks to some ingenious it off just yet; it could be has exploded, with 500 legislation introduced since, the the hidden European gem unique brands now operating country has not only managed you’ve been looking for, and throughout Portugal, totalling an to recover but position itself as could be a stepping stone to estimated 11,300 units. stronger than ever before. further growth across this Domestic franchisors make up In 2009 for example, Portugal exciting continent.
GLOBALFRANCHISEMAGAZINE.COM 45 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 46 SECTOR FOCUS: MILLENNIALS & GEN Z Millennials IN FOCUS
Millennials are highly educated, tech-savvy, and represent one-quarter of the entire U.S. population. Soon, they’ll also dominate the franchise industry, but is your concept ready? Here are the stats, strategies, and individuals that you need to know about
REPORT BY KIERAN MCLOONE
GLOBALFRANCHISEMAGAZINE.COM 47 SECTOR FOCUS: MILLENNIALS & GEN Z
Franchising’s youthful overhaul: meet the next generation of industry leaders Millennials will soon dictate the trends and brands that populate the franchise industry – is your business ready?
WORDS BY KIERAN MCLOONE
illennial’ is far launch their first business at 27 from a marketing MILLENNIALS years old, compared to 35 years old ' buzzword, nor is it the IN NUMBERS for baby boomers, and according to M name of the hottest Deloitte, 60 per cent of millennials • Average age for first underground nightclub; it’s a term said that in a post-COVID world business: 27 that describes one of the largest • Average spending in U.S.: they want the option to work from generations in the global workforce, $600bn home more frequently – a perfect fit born around 1980 to 1995. • 60% would like flexibility to with remote franchise concepts. With more than 83 million work from home According to eMarketer, millennials in the U.S. alone – one- millennials also spend an average of quarter of the country’s population – 7.2 hours online each day, so there’s it’s also the up-and-coming group that others’ needs, and they now intend an unfaltering finger on the pulse is dominating the franchise industry. to take actions that benefit their of what’s popular, important, or local communities. This could mean essential for your business. The empathetic becoming the franchisee of a brand generation that goes out of its way to give back Franchising’s new Millennials are resourceful, to those in need, or exclusively frontrunners entrepreneurial, and empathetic. In working with suppliers that Millennials may need to be fact, according to Deloitte, the global sustainably source materials. approached from a different coronavirus pandemic has made Be wary to dismiss this perspective compared to previous nearly three-quarters of millennials sympathetic sentiment as a passing generations, but get them on your more sympathetic to phase, because millennials spend side, and any business is set to thrive. around $600bn in the U.S. every This isn’t just because of their year, and 40 per cent of those natural inclination to self- purchases are influenced primarily employment, but also the fact that by online reviews and testimonials. they are the most highly-educated If a brand isn’t putting positivity generation, with 39 per cent having back into the world, there’s a a bachelor’s degree or higher, strong chance it could find compared to around one-quarter of itself left by the wayside. baby boomers. A natural partnership A GATHERING On the recruitment OF YOUNG side, there are a PROFESSIONALS handful of traits For millennial entrepreneurs of the millennial looking to enter the generation that franchising world, Franchise naturally align with YoungConference could be franchising, which the perfect starting point. positions them as The event started in 2019 and excellent franchisees saw 100 young leaders in the for the right kind franchise world come together to share insight and network. of business. The next event is currently For example, millennial planned to take place in New entrepreneurs typically Orleans in November, 2020.
48 GLOBAL FRANCHISE | ISSUE 5.2 SECTOR FOCUS: MILLENNIALS & GEN Z
The kids are alright: how to market to millennials
Who better to discuss Generation Y’s role in franchising than two millennials immersed in the industry? From a distrust of advertising to the ease of entrepreneurship, the experts unpack what makes this generation tick
INTERVIEW BY KIERAN MCLOONE
because we see trends and lifestyles on social media. We IN CONVERSATION: engage more heavily in organic Zack Fishman is the director of innovation at FishmanPR, reach than paid reach, just and specializes in the ways that brands can reach untapped because of how untrustworthy markets and harness the skillset associated with the we are with advertising. millennial generation
Ryan Hicks is the vice president for business RH: Just to piggy-back on the development at Rallio, a social media point about advertising, there’s marketing tool to help franchise brands a perception that millennials build awareness aren’t brand loyal, which I think is misconstrued. Millennials can be just as loyal as previous ow would you ZF: I'd say that millennials generations, if not more so; categorize the are inherently untrustworthy they’re just looking to what their H millennial of advertising. They require a peers are doing. generation? lot of research before they RH: The first thing that comes to mind actually engage with something. ZF: That’s right: when a millennial is that millennials are the largest Normally that research isn't does like something and engages generation since the Baby Boomers – done in the traditional ways that with a brand often, there’s a much there are around 70 to 90 million of we may think of; especially a deeper loyalty because of the us, which is a lot of people driving social business purchase. emotional connection that’s and cultural change. From an economic When millennials go to research then made. standpoint, it's a significant segment you a product, they're often looking must target; millennials absolutely can at what their peers are doing. RH: I’d classify it less as blind not be ignored; neither in the workplace We're very much the 'I'm doing loyalty and more that when that nor from the consumer side. that, too' generation, purely loyalty does eventually come, it
GLOBALFRANCHISEMAGAZINE.COM 49 SECTOR FOCUS: MILLENNIALS & GEN Z
can be incredibly intense. Millennials RH: I always say that marketing, Anybody with an internet connection are also much more vocal than previous historically, had this capability to and an interest can be one. It's a lot generations when it comes to social put a message in front of a huge harder to break through to be an issues, and at the core of it, we want audience. It was what you put out entrepreneurial success if you don't something bigger to believe in. and how you told the world 'this have a playbook, though, and that's The other thing is that even though is who we are and this is what we what attracted me so much to the millennials aren't making all of the do'. Now it's two-way, and it's no franchise world: you have that playbook purchase decisions, they influence a huge longer what brands tell the world; to be successful. amount of decisions that their parents it's what people tell each other and 15 years ago, it wasn't cool to be an or grandparents make. Millennials are it's more of a conversation, which entrepreneur, and now it is. We have very sought after because of not only the you're seeing on social media. Steve Jobs, Elon Musk, and Richard purchase power that they have, but also We call it employee and Branson. We have shows like Silicon the purchase influence. customer advocacy. It's not Valley and influencers glorifying really about Net Promoter Scores the lifestyle. “If franchising were anymore; if I ask Zack if he'd refer Years ago, the word entrepreneur a brand to a friend, how do we meant living on your mom's couch dating, then millennials then get him to share that positive and starting a business out of your impression? Brands like gyms, for basement, which isn't the case now. have some trust issues” example, design their premises What I get excited about and the with a nice backdrop because then reason Zack and I host a podcast is From a consumer after you go to a class you'll take that we're evangelists of the franchise perspective, how can a photo promoting their business business model. I can't wait to see brands overcome the and tag them in it. more millennials and even younger inherent mistrust folks realizing that they can get into millennials have in Millennials are starting business by themselves by buying into advertising? businesses earlier than a business that works. We're going ZF: It's all about building an emotional boomers did, which to have a boom of millennial connection with the company by shows a new level of franchise ownership. convincing somebody else to write entrepreneurialism. something awesome about that company. Do you think that’s There’s the perception You're really trying to convey emotional the case? that millennials are attachment. Testimonials are very RH: I think that we have more serial job hoppers, important for brands to bring millennials access and capability than ever with 15-20 roles in round to the idea of their offering. before to be an entrepreneur. their lifetimes. Is that
50 GLOBAL FRANCHISE | ISSUE 5.2 Is Generation Z something “I would recommend that brands brands should be focusing on, if not for franchise use tools that assess personalities; recruitment right now, I wouldn't even make a hire then down the line? RH: I think that Generation Z is going without exploring that” to be like millennials on steroids.
ZF: Definitely. If boomers can’t deal cause for concern for Rallio and somebody says they with millennials then they’re definitely franchise recruiters? were at their previous company in for something big. When it comes ZF: Millennials are always for three or four months and they to me and my little brother, I'm the searching for something where didn't vibe with the company youngest of the millennials and he's they feel like they can belong and culture – that's acceptable now! the oldest of Gen Z – there are only a trust. If franchising were dating, On the flipside, it's very couple of years between us – and the then millennials have some expensive to hire but then not ways that we interact with each other trust issues. That's why social retain. I would recommend that are completely different. He engages media and PR are so important; brands use tools that assess with things very differently to me not doing the fluff pieces, but personalities; I wouldn't even despite the fact I'm only two years showcasing ways in which make a hire without exploring older. It'll be at least five years people feel like they're genuinely that. Beyond the one-on-one before the franchise world catches engaging with a brand. values that a person has, you up with Gen Z. At FishmanPR, we want to try need to make sure that their and harness that drive. We're traits mean they'll be successful always recommending that brands at their job. THE FRANCHISES DRIVEN BY spotlight amazing franchisees Assessing people is a necessity GENERATION Y in their network, because that's because it's expensive to hire, Ryan Hicks what people want to see. They especially at VP and C-suite want to see what it's like to walk levels. You need to look at all Health-focused fast casual: Millennials have in somebody else's shoes for a aspects of a person to make introduced a healthier way of eating into the global sure they're in the right seat food palette, forcing established franchisors to little bit. add healthier options to their menu. In our view, of your company. Once that's millennials are going to continue to flesh this out as RH: Job-hopping is also no longer done, build a culture that America continues to change its diet towards more frowned upon. If we're hiring at inspires folks. nutritious food. Mobile pet services: Due to its relatively cheap initial investment and the millennial obsession with pets (more are being adopted at a lower average age than Gen X or Baby Boomers), this industry is poised for tremendous growth, with millennials coming into focus as the primary franchisee candidate being marketed to.
Zack Fishman Home-based children’s services: A recurring trend here, millennials are constantly looking for the cheaper initial investment due to the massive amount of debt we’re in. With a children’s services franchise that requires no brick and mortar, millennials have the ability to give back to Generation Z while also running a business with little overhead. Home services: Despite the fact that more millennials rent than any other generation before them, real estate experts believe many will begin to buy homes as the bottom half of generation gets into their 30s. Home services concepts like house painting, carpet cleaning, and window washing will be the franchise du jour for those who seek low overhead-high margin business with a good opportunity to expand quickly.
GLOBALFRANCHISEMAGAZINE.COM 51 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 30/07/2020 17:47 Page 52 Behind the Brand - xxxxxxxxxx
GLOBALFRANCHISEMAGAZINE.COM 53 GLOBALFRANCHISEMAGAZINE.COM INTERVIEWS BY KIERAN MCLOONE BY INTERVIEWS
taking the franchise industry by storm industry by taking the franchise
A snapshot of some of the biggest and best names some of the biggest and A snapshot of
MILLENNIALS IN MILLENNIALS FRANCHISING MILLENNIAL POWER LIST POWER MILLENNIAL MILLENNIALBEHIND THE POWER BRAND LIST
KYLA DUFRESNE founder and CEO, Foxy Box Wax Bars
“I set out on a mission to inspire and valuable lessons that I learned from this empower women to celebrate their experience which allowed us to get to the uniqueness and rock what they’ve got,” position we’re in today.” ALYSSA BURK says Kyla Dufresne, founder and CEO of These lessons include understanding owner and operator, Kona Ice Foxy Box Wax Bars, the Canadian beauty the fundamentals of franchising, brand specializing in creating a warm and systemizing everything so the operations inclusive environment for intimate waxing. manual becomes a cover-all bible, and to “Every year in business Since launching the brand in 2012, understand and harness your differentiator. I set a goal that I want Dufresne’s journey to operating two “Franchising can be a really incredible corporate locations and three franchised opportunity for people wanting to get to achieve by the end of stores hasn’t been without its challenges. into business,” says Dufresne. “Be 100 per the year” “I sold my first franchise five years ago, cent sure the brand you choose is one that before I really understood what franchising elevates and inspires you, and one that you After training to become a nurse, meant,” she explains. “There are so many can align your beliefs with.” Alyssa Burk decided that it wasn’t the career path she wanted to pursue; she wanted to be her own boss. This led her to become a Kona Ice franchisee at only 22 years old, and she now operates three units, with GABRIELLA FERRARA the goal to extend to five very soon. “Hard work and dedication will get head of business development, PwC FranSuite you to where you want to be in life,” says Burk. “Every year in business I set a goal that I want to achieve by the end of the year, and somehow I It’s just as important to recognize the PwC FranSuite. always end up exceeding that goal.” individuals who act behind-the-scenes “Franchising is like a family and Burk’s fiancè recently started of the franchise industry, as it is the everyone wants to support one another assisting with the business, and franchisors and franchisees running to see them succeed,” says Ferrara. brands. Individuals like Gabriella “In my experience, I have never seen the couple’s goal is to be able to Ferrara, who joined PwC at 22 and now, an industry truly come together as a eventually achieve absent ownership four years later, works on assisting community like the franchise industry, through the right hires, so that they the biggest franchise brands with their and this has been more obvious than can enjoy an early retirement off the digital marketing efforts through ever since the pandemic.” back of plenty of hard work.
MICHAEL BROWN joined the team full-time at 22 years old. president, Children’s Lighthouse Now at over 50 schools in eight U.S. Franchise Company states, the Children’s Lighthouse name is synonymous with comprehensive, community-driven education. And Michael’s Michael Brown has always been a part most important lesson he learned along the of the Children’s Lighthouse family, ever way? “Effective communication. Business since his father and uncle founded the owners have a multitude of distractions education franchise back in 1994. He spent swirling round each day, making it easy to his weekends as a teenager watering trees, lose focus. I have seen how a strong team changing air filters, and maintaining the that is able to communicate effectively can upkeep of the brand’s several centers, and make seemingly impossible things happen.”
54 GLOBALFRANCHISE | ISSUE 5.2 Behind the Brand - xxxxxxxxxx MILLENNIAL POWER LIST
ANDREW GRUEL founder and chef, Slapfish Restaurant Group
JEREMY CUMMINGS owner and operator, Jabz Andrew Gruel’s affinity for started as a food truck, and food began at an early age, has now evolved into 25 when he would stay home brick-and-mortar restaurants Jeremy Cummings was always aware of the and feign sickness to not across the U.S., with a Jabz Boxing brand, as his mother worked as a go to school, so that he recent overseas expansion special needs teacher with one of the original could binge cooking shows to the U.K. Jabz studio owners. When the brand then and begin learning the “The mission of Slapfish began franchising in 2013, the opportunity was culinary arts. is to get people to eat more immediately on his radar; in fact, he was soon In his career, this passion seafood – more of the right approached about opening his own location. led him to the founding types of seafood,” says But at 23, the idea was daunting at best. of Slapfish in 2011; a Gruel. “In order to do this, I Soon, however, Cummings realized the sustainability-focused figured it would be best to potential that could come with the venture, seafood franchise that scale via franchising.” and at 25 years’ old, he opened his first location in Glendale, Arizona. Now the owner of two studios, he hasn’t looked back. “I’m so incredibly proud of the Jabz communities we’ve built in Glendale and Surprise,” says Cummings. “We look forward to continuing to empower our members to reach their fitness goals.” DIANA ROSARIO founder and CEO, What’s your FLAN?
As the runner-up of the AMBER 2019 NextGen in Franchising MANNING competition and founder “Do not be scared CEO, Just Cuts of the internationally Franchising successful What’s your FLAN? to fail, for failure is confectionery brand, Diana just learning.” Rosario isn’t afraid to talk Amber Manning’s immersion in the about her failures. In fact, explains. “But I was not franchise world could be seen as an without them, she wouldn’t ready to give up. My failures inevitability, as she began her career as have learned the lessons that became my motivation and the youngest financial services franchisee made her the global success strength to keep me going.” in Australia at only 21 years old. she is today. That motivation has led Now the CEO of Just Cuts Franchising, “I had 14 failed businesses Rosario to now open 145 and with the aim to expand the brand’s before What’s your FLAN?. locations nationwide in the portfolio of 220 hair salons to over 400 During those early years, it Philippines, as well as a throughout Europe alone, Manning was difficult to accept my master franchise in Alberta, emphasizes the necessity of following fate and I started to believe Canada, and one in Dubai. your gut. “Just go for it, and don’t be afraid that I was not born to become “Do not be scared to fail, to ask an expert in your industry,” she an entrepreneur,” Rosario for failure is just learning.” says. “Try not to over complicate or have red tape slowing you down from your focus, which is always business growth and success for all.”
GLOBALFRANCHISEMAGAZINE.COM 55 MILLENNIAL POWER LIST
JORDAN BLACK owner and operator, Two Maids & A Mop
As a public school music teacher as an entrepreneur. Instead of CARMELO MARSALA in 2008, Jordan Black knew that letting them bring you down, you founder and president, Spray-Net he wanted something more from have to embrace the failures as life. Education was fulfilling, but opportunities for development he found himself constantly and success.” After joining College Pro as a franchisee at pursuing side hustles and starting In the future, Black plans to just 19 years old, Carmelo Marsala recognized small businesses. This drive for increase his portfolio of Two how a gap in the market could be filled in something greater grew, and soon Maids & A Mop locations, so the world of exterior painting. The franchise Black decided to pursue a new that he can continue to have the model appealed to Marsala, and so he decided career path as a Two Maids & A flexibility to live the life that to become a franchisor with the founding Mop multi-unit franchisee. he wants. of Spray-Net in 2009. Years later his growing “One of the most valuable brand would take home the 2016 grand prize lessons, and perhaps the most “One of the most at the NextGen in Franchising competition, difficult to learn, is that there are valuable lessons, and and continue expanding from there. going to be unavoidable failures,” perhaps the most His advice to young entrepreneurs looking to join says Black. “You are going to difficult to learn, is that a franchise network? “Talk to existing owners and make mistakes, and that is just there are going to be really make sure you see yourself working with going to be part of the journey unavoidable failures” the corporate team. Do you like them, and do you trust that these guys can work together through thick and thin? Because the franchisee/franchisor relationship truly is like a marriage.”
AMANDA WHITE owner and operator, Vitality Bowls
JOHN CARLSON Amanda White was lacking a sense of passion when owner and operator, Christian Brothers Automotiv she first considered the idea of becoming a franchisee. She had worked as a social media and events planner, traveling a lot, and not seeing her family often enough. Coming off the back of a career in the NFL as a professional Soon, the prospect of starting her own business player and then a sport psychologist, John Carlson knew became a priority. nothing about owning a business. However, the idea of “Entrepreneurship is the American dream,” says owning a franchise appealed to him, on account of the White. “To have a franchisor to lean on for support proven business model and ongoing training and support and guidance but also have the flexibility to create that the model offered. my own local marketing plans and own a business in “One of the most valuable pieces of advice that I received an industry that I’m passionate about is a far more was to spend as much time in another store as possible,” fulfilling career path than sitting at a desk from 9-5.” says Carlson. “By doing so, you get a sense of the typical White’s long-term goals have been postponed as a day as a franchise owner.” result of COVID-19, but her aim is to eventually expand John only opened his Phoenix Christian Brothers to a second Vitality Bowls location and acquire a food Automotive location in June 2020, but is enthusiastic about truck to attend events once it becomes viable to do so. the further growth potential for the auto service franchise, currently operating throughout 30 states in the U.S.
56 GLOBALFRANCHISE | ISSUE 5.2 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 29/07/2020 14:43 Page 57 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE LOGISCOOL
Established: 2014 Number of franchised outlets: 100 Bringing Location of units: Belgium, Bulgaria, Czech Republic, Germany, Hungary, India, Mexico, Romania, Serbia, Singapore, Slovakia, Spain, Switzerland, Taiwan, Turkey education up Investment range: $150,000 - $200,000 (master franchise) Minimum required capital: $150,000 - $200,000 Contact: to code [email protected] logiscool.com
a face-to-face education is vital. Logiscool is fulfilling the global demand for e-skills Finding the best way to keep the attention of children in the online in the face of COVID-19 space brought about new solutions and new collaborations. “We worked on the new courses ounded in 2014, ADAPTING TO with our best teachers from every Logiscool became a THE LOCKDOWN country, and we built on their F significant worldwide At the beginning of 2020, tens of experiences as well as the knowledge educational franchise thousands of students studied of our curriculum development network in just six years. The computer coding in Logiscool’s team to provide the best conditions number of Logiscool locations classrooms around the world. for online education,” said Dr. Anita around the world was nearing 100, However, not long after the start of Breuer, founder of Logiscool. with new schools scheduled to be the spring semester, every school opened when the coronavirus crisis had to switch to online teaching in THE PERFECT PLAYBOOK hit the world. just a few days. Thanks to the foreign FOR SUCCESS Hardly had the paint dried on partners, Logiscool’s Hungarian In times of crisis, reinventing and the walls of the classrooms when headquarters was well-informed on optimizing existing tools is essential. schools had to switch to online how the pandemic evolved, which At Logiscool, the role of the online education. With a smart strategy helped them act upon the challenges. portal developed for students and and quick action, Logiscool Yet, the transition still required trainers suddenly became crucial. managed to turn the global significant effort from the team. This platform had been around for challenges around and bring about Logiscool’s methodology relies on a while, but it was used for positive changes at a network level. experience-based teaching where community building. When the need for online teaching arose, Logiscool quickly managed to align itself to better suit this new requirement. “The fact that the new system could have been developed in a week was thanks to our franchise approach,” said Gyula Csitari, co- founder and strategy director. “We are used to creating every material in a form that is easy to multiply in every country while also providing consistent quality.” The closure of primary and secondary schools, together with the economic situation caused by the pandemic, brought challenges for all. “The present situation had significant potentials, too,” added Dr. Anita Breuer. “We managed to provide online coding education to children who have never tried it before, thus helping them spend their time at home in a useful and fun way.” To suit these needs, Logiscool launched a new product: Logiscool
58 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - Logiscool
LIVE! beginners’ online courses, computer games. But they don’t just which started in April. “This was a play with them; they create their own “With a smart strategy and giant step for us both on a Hungarian games. And while learning the main and an international level, as this way principals of coding, they acquire the quick action, Logiscool we could finally reach students living most important skills of the future: far away from Logiscool schools. We problem-solving, logical thinking, managed to turn the always take one step forward, and I creativity, endurance, and more. believe that time will prove us right.” With its uniquely developed, global challenges around proprietary education platform and and bring about positive A SAFE HAVEN FOR scalable curriculum, Logiscool can SMART MONEY adapt teaching to the age, knowledge level, and learning speed of students changes at a network level” As the demand for e-skills is growing and thus maximize the level of in Europe and worldwide, digital satisfaction both for children and education platform, and 800-plus hours literacy cannot be highlighted their parents. Offering classroom- of the uniquely developed curriculum enough. Parents see the IT industry based and online courses, camps, ensure high lifetime value for each and and coding education as a path and other after-school programs in every student. for their children’s future success. 20 different topics related to coding, The school and equipment design, Yet public education cannot keep robotics, and digital literacy for the trainers’ portal and training, the up with these demands. In the children aged six to 18, Logiscool has full-spectrum curriculum, as well as the U.S. alone, one million coders are the most varied service portfolio in education and marketing support are missing. By fusing education with the coding education sector all guaranteed. Logiscool places extra entertainment, Logiscool found the for children. emphasis on continuous development, winning strategy to fulfill this gap in To date, Logiscool is present in 15 with innovations launched regularly. the market. countries with over 100 units and Education is the most booming 70,000-plus total enrolled students, sector in the world economy and its but growth doesn’t stop there. After two-digit yearly growth foreshadows signing agreements in mid-Germany, extremely positive prospects for the Slovakia, and the Czech Republic in years to come. In addition to the middle of the crisis, Logiscool being the safest bet with high now invites new master partners. profitability, it also creates real And the brand surely knows how value to society: it is an investment to crack the code to success as one in the future generations. of its most successful partners, the The earlier we can give a taste Romanian master, managed to open of digitality to our kids, the higher 30 schools in her territory in just chance they will transform from two years. being passive consumers to active As Logiscool managed to keep creators, ensuring a successful its role as a global leader in the career in a digital world. face of the pandemic, its franchise system proves to be recession- IT’S CODE O’CLOCK proof. Logiscool’s offer is a ready- At Logiscool, children do what they made solution: its own classroom like the most: spend time with management system, proprietary
GLOBALFRANCHISEMAGAZINE.COM 59 FEATURE
ENTERPRISE AND ALTRUISM: THE CHARITABLE SIDE OF INTERNATIONAL BUSINESS
Franchising has a unique position to give back to the communities that an operation thrives within, especially large networks with hands-on franchisees
WORDS BY KIERAN MCLOONE
60 GLOBAL FRANCHISE | ISSUE 5.2 n paper, franchising’s the business of helping businesses franchisor who can oversee everything connection with charity to be better. We can help charitable from head office. It's also important work looks like a organizations by working with them to instill it within the brand's value O as a business, by looking at how system, which is probably the most match made in heaven. Particularly for a franchised store they can run efficiently.” important aspect.” location that is thriving within its local community, it only makes An effective approach “Find a way to make a sense to give back to the patrons It’s one thing to pursue charitable that have enabled it to find its initiatives within your organization, difference in the lives footing and succeed. This could but it’s an entirely different challenge be through direct cash donations, to source and enact the right kind of of those whom you are in-kind donations, the providing outreach for your business. of free services to boost the local For Mitali Chopra, ActionCOACH’s blessed to serve” community, or anything else that top-down approach of franchisor- goes above and beyond what a driven guidance has been evidently From the ground up effective: “The franchisors have a business offers to its customers. However, other franchise networks bigger-picture view that allows them “Personally, I feel that any have identified more appropriate to see where the most effective action business that is doing well has a methods of charitable engagement can be taken, and they can then responsibility to give back to the for them; Edible Arrangements, for instruct franchisees on what actions community, because that's where example, has taken a more hands-off to take to enact this. Being able to see the business is based,” says Mitali approach. Rather than franchisors everything holistically can be more Chopra, managing director in directing the network on how they impactful,” she says. London for ActionCOACH, should be working alongside their “Individuals can make a difference an international business local communities, Cheikh Mboup, and may even be the ones to start coaching franchise. the president of Edible, believes that momentum, but to run it like For ActionCOACH and Mitali franchisees have the insight required a program, it comes down to a Chopra, giving back comes in to maximize efficient giving-back. the form of the brand’s ongoing “One of our greatest strengths is Coaching for a Cause program. This operates as a global pro bono coaching scheme aimed at non- profit organizations, which is designed to bring in more donations and, consequently, build better communities around the world. “For any franchise brand, they are in the business of solving problems for people – directly or indirectly. One of the things that they can look at is the nearest or most relevant charitable organization that they can help,” continues Chopra. “For ActionCOACH, we're in
GLOBALFRANCHISEMAGAZINE.COM 61 FEATURE
donation of products to emergency and CEO of Just Between Friends. “The franchisors have a services and first responders “It came to be when we noticed a across the States, to thank those woman at our Tulsa sale buying bigger-picture view that protecting the brand’s regular loads and loads of clothes for customers during extremely babies – more than any mom could allows them to see where challenging times. use. As we spoke with her, we found out she worked with a local charity the most effective action Network-wide that serves families in very hard processes life situations – families that often can be taken” For some franchise concepts, the have to flee for safety in the middle of the night with nothing but the the ability to have independently- connection with charity seems clothes on their backs. She asked owned locations; in most cases like it was always a part of the us outright, ‘What do you do with owner-operators. What occurs plan. Just Between Friends, the these unsold items? Could we have is that they tend to have a better retail franchise organizing pop- them?’ With that question, the plan, feeling and understanding of up consignment sales across the and now a critical component to our what's happening in their own U.S., has donated more than $28m business model, was born.” community,” says Mboup. “Often, of in-kind and cash donations to Laying the groundwork in strategy starts from the top, which hundreds of charities since it began your franchise network to create then goes to marketing, then mass in 2004. According to its founder, measurable change can be a tough communication, then independent however, this benevolent side of the hurdle to overcome, but Wilburn is owners or franchisees, and then it business grew naturally alongside passionate that all of the hard work hits the store and customers. In a franchise expansion. pales in comparison to the feeling time like this, you have to tilt that “The charitable side of Just of helping those in need: “It may pyramid and talk to customers. Between Friends was not a part of be tricky to figure out initially, but Those customers don't talk to us the original plan because we really the shift it makes is immeasurable. at head office as much as they didn’t have a plan. We didn’t even After all, we have been so blessed talk to their local stores. So you think about this because to do what we get to do. So, do it. ask those that are involved in we were so small. As we Do whatever it takes – find a each community and give them quickly grew, we realized way to make a difference in guardrails as to how they should we did have a great the lives of those whom do things.” opportunity here,” says you are blessed to serve. Edible’s charitable work during Shannon Wilburn, In the end, giving back the COVID-19 crisis involved the co-founder is not a burden; it’s a tremendous, enriching, life-changing joy.”
62 GLOBAL FRANCHISE | ISSUE 5.2 LITTLE KICKERS: months to the Sparkle pre- school for the past few years,” KOALA SERVING says Christine Kelly, founder COMMUNITIES and chair of the brand. “Our INSULATION: coaches take Little Kickers BUILDING HOMES WITH SOCCER kits and equipment and run classes for the kids and train FOR HUMANITY up local teachers from the For Little Kickers, the preschool on how to run the international football education Little Kickers program.” Koala Insulation has a strong partnership with franchise founded in the U.K., Little Kickers has also Habitat for Humanity, a non-profit organization that charity comes in several forms. shifted its football kit material ensures those in need have properly insulated homes As well as donating a franchise from polyester to yarn spun to stay safe and warm. Following franchisee training location to two Aston University from recycled ocean plastic, days, the brand donates insulated walls that have students in Birmingham, and if children return their been built to prevent any waste. England, the football brand kits once they’re finished “Through our regular donations, we’ve been able to has also been conducting work with them, the brand help them build properly insulated houses for those in Africa to better the lives of donates them to orphanages in need,” says Scott Marr, CEO of Koala Insulation. “As local children. in South Africa alongside growth continues to pick up for our brand, and we “We’ve been sending two balls, goals, and other have more and more training sessions, we are able to coaches to Malawi every few fun equipment. supply them with additional materials. It’s exciting to make an impact, especially one that came about so naturally. It’s the least we can do!”
YOU’VE GOT MAIDS: CLEANING FOR A REASON
You’ve Got Maids, a home-cleaning franchise based in the U.S., partnered with the non-profit Cleaning for a Reason to donate house cleans to cancer patients who might otherwise not be able to adequately deep clean their homes. To say that the partnership has been beneficial doesn’t quite cut it: the brand has already performed over 1,100 free house cleanings to date. “At You’ve Got Maids, our goal with Cleaning for a Reason make them happy? If we can make is to build goodwill into everything promotes that; what could be even a small part of their day just that we do,” says Frank Berger, better than helping women who are a little better, we are making the founder and CEO. “Partnering fighting cancer to find something to world a better place.”
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AT A GLANCE SCHOOL OF ROCK
Established: Keeping the 1998 Number of franchised outlets: Over 270 Location of units: North, Central & South America, Africa, music going and Asia Pacific (and soon Europe by end of 2020) Investment range: $192,150 - $422,100 Minimum required capital: $125,000 (liquid) / $350,000 (net worth) As School of Rock comes hot off the heels of a record- Contact: franchisingopportunities@schoolofrock. breaking year, the musical franchise favorite shifts com or +1 866-840-2179 strategy to weather the COVID-19 storm franchising.schoolofrock.com
ast year was That’s much more than just a existing franchisee who already instrumental in the bold claim; School of Rock signed understands the business, L development of School 35 new franchise agreements in opportunities, and challenges of of Rock. The worldwide the U.S. in 2019, which is a huge the franchise – and are still willing music phenomenon, which milestone, as the brand would to expand with us? For me, that’s specializes in teaching kids of all traditionally cap off at around 25. the best validation you can get.” ages how to play like their favorite This number is further bolstered Existing franchisees make up rock stars, has been on the up for by School of Rock’s overseas a big part of School of Rock’s over two decades now… and shows achievements, as it signed up steadily growing portfolio, as no signs of stopping. four entirely new country license across the last two years, an “Both on the domestic and on agreements – taking the toe- estimated 25 to 30 per cent of new the international scales, we feel tapping concept to young rockers franchises have been awarded to like we’ve had a very successful in Columbia, Paraguay, Spain, entrepreneurs already a part of year in development,” says Anthony and Portugal. this melodic family. Padulo, chief development officer “The thing that makes me happy for the franchise. “This has been, about those countries is that NAVIGATING UNCERTAIN historically, our most successful 12 all four agreements were signed TIMES months since we began franchising with existing master franchisees,” With the rise of a global pandemic around 13 years ago.” explains Padulo. “To work with an and ‘stay at home’ orders being issued earlier this year, School of Rock has taken swift action to offer students new ways of staying engaged with music. School of Rock Remote, the brand’s online one-on-one music education program, allows students to take music lessons online. This program continues students’ musical journeys in a way that prioritizes well-being through social distancing. As restrictions are lifted and some School of Rock locations are able to re-open for in-person lessons, the brand has instituted strict safety policies such as required face masks, mandatory hand sanitation, social distancing guidelines, along with physical partitions between students and rules precluding students from sharing instruments.
HITTING THE RIGHT NOTE So what’s the secret behind School of Rock’s consistent success?
64 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - School of Rock
“I think the reason we’re doing so well is that music has such a universal appeal,” says Padulo. “Unlike a food business where you may have to adapt the concept for local taste, we don’t have that issue. Whether you’re in the U.K. or South Africa or Brazil, there might be variations of local rock, but the basic premise of English-sung rock music is universally accepted.” And while local flair is certainly included in the School of Rock curriculum, some legends transcend borders: The Beatles, David Bowie, and Bruce Springsteen are heard at every location, taught by veterans of the industry. Not just heard, mind you, but thunderously echoed through the hallways: “We’re definitely looking for somebody who doesn’t mind the noise,” laughs Padulo. “That’s always our first criteria, because while it’s music, it is noisy!”
TWIST AND SHOUT MASTERING THE “We’re looking for If tolerance of noise is one of the METHOD primary criteria for a School of Rock One of the brand’s prime sustainable, solid growth; franchisee, what else is important innovations for its English- growth at a rate which when joining one of the most speaking franchise locations successful and exciting education is the School of Rock allows us to not jeopardize franchises in the world? Method App, which allows “Because 85 per cent of our students to continue their or compromise on the level business is children, you want education at home, or somebody that enjoys being wherever they choose. of quality and support that around children,” says Padulo. Through the app, kids “Of course, you also look for can follow along with filmed we’ve been providing over people who are financially well tutorials to learn new keys, qualified, and who can put together tune their instruments, and the last few years” the required infrastructure for interact with the brand with the model.” unprecedented connectivity. When looking for international Simply put: no other master franchisees, as opposed education franchise offers an to domestic franchise partners experience quite like this. in the U.S., School of Rock favors individuals with prior experience. Not just with music, mind, but with business development as a whole. “RESPONSIBLY This is something ingrained in AGGRESSIVE” the franchise’s culture, as Anthony The franchise is far from foolhardy, Padulo has been in franchising for however: “We’re not the kind of four decades; working in numerous franchisor that comes out, says industries and mastering the art of we’re going to do 150 locations taking a concept overseas. a year, and then five years later “You might say, ‘why do you they all start closing,” says Padulo. want an existing master “We’re looking for sustainable, franchisee?’,” says Padulo. “In my solid growth; growth at a rate experience, having an existing which allows us to not jeopardize master of another business is or compromise on the level of very helpful, because that person quality and support that we’ve been or group already understands providing over the last few years.” franchising. It’s all about creating For Padulo, the message is trust, creating relationships, and clear: “We have plans to be understanding the differences and responsibly aggressive. We’re very intricacies of working between a bullish, but we plan on growing at franchisee, master franchisee, a reasonable and responsible rate and franchisor.” that we can sustain.”
GLOBALFRANCHISEMAGAZINE.COM 65 SHOW PREVIEW: PARTNER CONTENT
AT A GLANCE Franchise Expo FRANCHISE EXPO PARIS
Where: Paris, Porte de Versailles - Pavilions 2 & 3 Paris is back When: 4-7 October, 2020 Contact: [email protected] The 39th edition of the leading international franchiseparis.com franchise event returns this October As the French borders are still not open to all countries, Franchise Expo Paris has a matchmaking ranchise Expo Paris, the crisis successfully. platform that enables visitors who organized by the 100 conferences and workshops cannot physically attend the show F French Franchise will also populate the four-day to organize online video meetings Federation (fff) and event, with essential themes on with the exhibitors throughout the Reed Expositions France, should how to start one’s business, create four days of the event. To do so, the have taken place last March for its a business model, convince your visitors have to order their badge 39th edition. It has been postponed banker, and other timely subjects, online, agree to have access to the to October 4-7 in Paris. such as how to kickstart your MyFranchise platform, and start business after the crisis, and planning their online meetings. Prioritizing safety how COVID-19 has changed the All visitors and exhibitors are This edition will be like no other franchising model. encouraged to organize as much before. The show team is doing all as possible their visit on the show. it can to make the four days run as Flexible attendance Save the date, and order your badge smoothly as possible. The health According to a study of 2,500 on the show’s official website using and safety of customers and visitors pre-registered visitors, 86 per the code: PAI2EE. are of paramount importance to cent are still planning on coming Franchise Expo Paris, and the to Franchise Expo Paris in show is dedicated to ensuring October. More than 30,000 French attendees can do business in a and international visitors are safe environment. expected with various profiles: Multiple measures will be entrepreneurs, employees implemented: a system to manage wishing to change careers, future and regulate the flow of foot franchisees, students, future traffic; masks compulsory for franchisors, master franchisees, everyone; hand sanitizers available and investors. in different locations on site; enhanced cleaning measures; and redesigned meeting spaces and conference rooms. A considerable turnout 350 French and international exhibitors have already confirmed their participation in October, and there will be more to come. Among them, you will be able to discover 80 new franchise concepts. Indeed, the franchising model has proven its efficiency in France during the COVID-19 crisis. According to a post-lockdown survey from the fff, 68.5 per cent of franchisors and franchisees thought that they would navigate
“The health and safety of customers and visitors are of paramount importance”
66 GLOBAL FRANCHISE | ISSUE 5.2 INSIGHT “This series will provide a road map to guide your team in creating a meaningful brand experience that will help you expand, build The Franchise Brand rockstar teams, and win the hearts and fierce loyalty of Experience Series: customers” Living the brand In this first installment of a four-part series on brand experience, Scorpion's Justin Mink sets the stage on why identifying, defining and living the brand plays a crucial role in the success of your system, especially in these tumultuous times
WORDS BY JUSTIN MINK
ince mid-March of brands disappeared. aren’t differentiated? Because the this year, franchisors The study also found that less brand itself is, ironically, often S and franchisees have than 27 per cent of all brands the very last thing an emerging found themselves improve our quality of life and franchise puts time and energy on a business roller coaster as wellbeing. Havas Group argues that into developing. COVID-19 rips its way across the this is because the vast majority Franchise leaders often expand U.S.; a high-speed ride of sudden of brands are not “meaningful”. with a focus on functional benefits THE AUTHOR closures, hairpin pivots to “grand A meaningful brand is made up and internal operations, scaling Justin Mink, CFE, is senior vice president reopenings,” then a second round of three distinct elements: upon a foundation of bootstrapped, of franchise growth of shutdowns. What chills and organic growth. Amidst the rush to at Scorpion. His spills await around the next bend • Functional benefits – Does the finalize an FDD, register state-by- passions for branding is anyone’s guess. product or service deliver? state, expand into new markets, and digital marketing In this topsy-turvy environment, • Personal benefits – Does the and stand up the infrastructure has guided a career planning and deploying new best brand improve peoples’ lives? required to support a system at that includes owning practices, protocols, and even • Collectiv e benefits – What’s the scale, rarely does an early-stage an events company business models can seem futile. brand's role in society? franchise consider personal and in Washington D.C., With no clear end to the crisis in collective benefits — which serve brand marketing for USATODAY.com, sight, how can franchises serve the ClassPass founder Payal Kadakia as the foundation for the purpose, leading the franchise changing needs and expectations says: “Be mission obsessed, not ethos, and soul of the brand. team as an early of all stakeholders — brand teams, product obsessed”. An April study Rarer still are franchise leaders employee at digital franchisees, and customers — by Gartner Research found that who devote intentional energy to marketing firm Rea- without having to start from 66 per cent of people believe translating those qualities into chLocal, cofounding scratch with every new twist companies should take the material action. As a result of this the marketing tech- and turn? initiative to solve key cultural near-exclusive focus on functional nology start-up Music The answer is simple: focus on issues in our society. Another benefits, the system remains stuck Audience Exchange, the one thing that should always recent study by Accenture found in second gear when it comes to and serving as chief marketing officer at serve as a North Star even through that 65 per cent of consumers are branding and market differentiation. New Frontier Data. the darkest of nights, pointing looking to identify themselves in But even for the most mature your teams, franchisees, and their brands, and 43 per cent are brands, there is now a pressing customers in the same direction — switching brands because they need to stay relevant amidst the brand experience. don't align with their beliefs. the breakneck pace of change. In terms of marketing and Franchises can keep up with this Why brand financial performance, “meaningful business and consumer evolution experience matters brands” are proven to significantly by crafting a clear and meaningful 'Brand experience' isn’t just fuzzy, outperform competitors in areas brand experience that resonates intangible marketing speak; your like purchase intent, advocacy, and with all stakeholders — and win brand experience (or lack thereof) premium pricing. market share as a result. Even has real-world implications. Contrast this with the fact that with Americans limiting their In fact, according to a study of 60 per cent of franchisors feel like activities, we’ve seen people turning 350,000 consumers conducted by their brand too closely resembles to brands as a source of comfort global agency Havas Group, people the competition. Why do six out and consistency, engaging with would not care if 77 per cent of all of 10 franchisors feel like they businesses (especially known and
GLOBALFRANCHISEMAGAZINE.COM 67 INSIGHT
trusted brands) as a way of buying at Massage Heights. “Now our first step; the next phase is some normalcy in an otherwise teams are working together with a the long game — consistently surreal moment. clear vision and goal. We are all so providing a brand experience for Massage Heights is a prime aligned and focused right now.” all stakeholders (brand teams, example of a franchise that has franchisees, and customers) that leveraged the crisis (and temporary Adapting the brand clearly and authentically aligns with closure of locations) to engage experience to customer the brand vision. in a disciplined examination of needs and expectations What’s changed recently is the brand, with a special focus Defining the brand and ensuring the way consumers discover on differentiating the brand to that internal teams rally around and interact with brands, with facilitate customer and team that singular vision is just the alignment. “We invested a lot, including a week-long workshop, in going back to the core of who we are and redefining our brand fundamentals,” said Ashley Schuetz, VP of marketing
68 GLOBAL FRANCHISE | ISSUE 5.2 which include introspection about “There is now a pressing need your brand purpose, followed by market research to validate and to stay relevant amidst the align that purpose with consumer preferences and your brand’s breakneck pace of change” competitive advantage. Part three will explore how to leverage your newfound brand pandemic fears leading people experience to build stronger to stay in and get online. In a teams, identify and attract the Scorpion study surveying consumer right franchisees, resonate with trends and behavior two months customers, and continually serve into the pandemic, 59 per cent of as a “source of truth” that guides respondents indicated that they internal priorities and behaviors. were online for five or more hours In the fourth and final part, we’ll a day, with a whopping 36 per cent provide actionable insights on how saying they were online for seven to communicate and market the or more hours (up dramatically brand internally and externally from 29 per cent just two (at the national and local levels) months prior). so that the brand experience Brands that have doubled- resonates, differentiates, and down on investments in ultimately drives growth. digital experiences have benefited by aligning with current consumer behavior. In doing so, KEY TAKEAWAYS these brands not • Meaningful brands only stay in front embody three elements of their current (functional benefits, and potential personal benefits, customers, collective benefits) that but they differentiate the brand in the marketplace. also have an opportunity • Because of the way most to capture franchises grow, very few market share by crafting brand have spent the time that experiences tailored for an era is needed to identify and of social distancing and online define the brand in a way experiences. that resonates with all Ensuring that consumers’ online stakeholders. and physical experiences are • In a time of uncertainty seamless, intentionally thought- and changing consumer out, and well-executed requires behaviors, franchises time and effort. Brands willing to have an opportunity to do the work will stay top-of-mind define their brand and with a digital consumer base, execute on that vision in and earn unique opportunities to a way that helps them delight and captivate audiences stand out from the now expecting businesses to meet competition. And them where they are — emotionally, when they stand out, they’re ultimately able socially, and physically. to capture more market share and accelerate their What you’ll learn business growth. in this series This series will provide a road • Those elements should map to guide your team in align internal teams, creating a meaningful brand franchisees, and experience that will help you customers around the brand experience — one expand, build rockstar teams, and that has rapidly shifted win the hearts and fierce loyalty towards an emphasis on of customers. the melding of physical Part two will explore the initial and digital content and steps you must take to identify interactions. your authentic brand experience —
GLOBALFRANCHISEMAGAZINE.COM 69 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE KARE PLUS Built to be Established: 1989 Number of franchised outlets: 80+ Location of units: different, Globally Investment range: Price on request Minimum required capital: Price on request evolved to be Contact: 01952 783 338 resilient franchising.kareplus.co.uk/
Kare Plus is adapting to suit the needs of a new healthcare landscape
riginally founded as a of the last recession, Steve grasped nursing provider to the the opportunity with both hands, O NHS in 1989, Kare Plus and with help of our experienced was built to be different clinical, operational, and regulatory – it was built to be future proof. support team, rebranded the Whilst maintaining and developing model and modified the operations the brand’s fundamental values and support infrastructure, built and foundations, Kare Plus has from a franchisee’s perspective. consistently evolved alongside the ADVANTAGEOUS increased demand and opportunities THE START OF INVESTMENT the healthcare sector presents, SOMETHING SPECIAL To further cement the foundations offering its business owners multiple Knowing how fundamental for the brand, Steve appointed income sources and access to support is to business success, Yvonne Tomlinson to become chief new opportunities. Steve knew that by setting the executive officer. Yvonne joined Kare The true evolution of Kare Plus right foundations, he would be Plus in 2017 and was appointed to really came into effect back in able to partner with like-minded CEO of the company in January 2020. 2010 when the brand was purchased individuals who shared his passion Taking over this prestigious by the then franchisee of Kare Plus for quality care. Under this helm, Yvonne has already driven Wolverhampton, Steve Welsh. ambition, he led the business to unparalleled results for the brand Joining the network at the start further expansion, developing a and aided the further development brand that was locally known but of the organization, advancing its globally grown. services into the provision of GP Since 2010, Kare Plus has grown locums, social workers, pharmacists, from three businesses to over 70 and chiropodists. across the U.K. and in 2016, it also “I have known of Kare Plus from began international expansion with a competitive angle, even before sites opening in Ireland, Norway and joining the brand,” said Yvonne. “Its the United Arab Emirates. passion for care and growth has With a franchise model that is always been a great draw for me and uniquely placed to take advantage of really was what attracted me to Kare the changing healthcare landscape, Plus. This passion is evident daily, it is no wonder the opportunity is not only from our experienced team so attractive. With over 30 years of support professionals but also of operating in the industry, Kare with our network, on a global scale. Plus is one of the most experienced “Reflecting on the advantages and diverse healthcare franchises of working with an organization in the U.K. and is truly one that experienced within the sector, not has refused to sit still. Instead of only is a care franchise a smart running the risk of plateauing, it and lucrative investment, it is a consistently diversifies. chance to open a business that is
70 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - Kare Plus
at the forefront of what we do, there is a continuation of the increases in demand for our services.
OPTIMUM TIME FOR GROWTH Consequently, to meet demand, Kare Plus is now seeking additional franchise partners to join its dynamic network and are ready and waiting to speak to people who want to make a positive difference to their local community, globally. Yvonne Tomlinson said: “The Kare Plus model puts franchise owners at the forefront of healthcare needs within local communities. After working in this hugely rewarding sector for many years I know how important it is to be able to offer a variety of care provisions and deliver a variety of specialisms to not only personally rewarding but your local market, the ever-changing meet the exact requirements of also improves lives,” continued demands of the industry, and our customers. Yvonne. “Being able to provide a challenges of the economic climate”. “Everyone’s needs are unique and wide variety of workforce solutions with that Kare Plus understands that enables not only more choice for our RAPIDLY INCREASING everyone wants something different customers but also multiple revenue DEMAND from the care and support they streams for our offices. Kare Plus has This platform of functionality would receive. By continually improving developed a broad range of services prove testament in future years, the accessibility and enhancement that achieve the high standards of offering the Kare Plus network of care provision, Kare Plus is able care and support our customers greater resilience in times of to wholly support its franchisees to expect. These services grow and uncertainty and economic challenge. meet the ongoing needs and wants expand year on year, ensuring our No one could have comprehended from those in their local community.” franchise owners can capitalize that we would be facing a global on demand. pandemic in 2020; COVID-19 seemed “By supporting our network to come as quickly as a tsunami and “With a franchise model to deliver multiple high-quality for some sectors, may be hard to services, our model ensures recover from. that is uniquely placed a diversity of income, new The severity of COVID-19 has opportunities, and most importantly, brought many industries to a halt; to take advantage of the a future proof investment. This also however, the healthcare sector is means that where other franchisors one that has had to endure and even changing healthcare will set you up with a business, we expand. Whilst the health and safety will support you to grow and adapt to of our network and customers are landscape, it is no wonder the opportunity is so attractive”
IMPRESSIVE FROM DAY ONE Prior to joining the brand under a master franchisor license in May 2018, entrepreneurs Kirk Robinson, Paul Hayes, and Michael Hayes were looking for a new challenge. After discovering Kare Plus online they knew it was worth further investigation. Coming from a non- healthcare background, they saw the benefits of working with a master franchisor and intrigue led them to discover more. “I was looking for an opportunity to help people and was motivated to take on an exciting and rewarding new venture. When I initially looked
GLOBALFRANCHISEMAGAZINE.COM 71 BEHIND THE BRAND: PARTNER CONTENT
at the business model, it fit in with my sentiment, and looking at Kare Plus it was very clear to see the company’s success throughout the U.K.,” said Kirk. “On our first visit to the head office in Telford, we were really impressed with the organization’s structure and the support staff within. By our second visit, the enthusiasm shown by the team and the integrity shown by Yvonne Tomlinson made it an easy decision to take on a Kare Plus master franchise. “From day one the support I received was second to none. I have thoroughly enjoyed working so closely with key members of the support team, and it feels as if they have now become part of the Kare Plus Ireland team.”
STRONG DEMAND, STRONGER SUPPORT The demand for healthcare providers is greater than ever and Kirk established processes to minimize the evolution and uses its experience as a confirmed that he has seen this potential to make mistakes, therefore benchmark. It has developed a world- reflected, even during the pandemic: safeguarding the end user. class support system and operates and “We have been able to award three The brand’s workforce monitors with its own bespoke systems franchisees during the COVID-19 solutions, rigorous training, strong and software. The brand has a strong pandemic which truly reflects the infrastructure, bespoke technology, support system that attracts high- strength of the sector and that of the IT systems, and experienced quality franchisees and allows them to opportunity. This, coupled with this leadership mean that quality control thrive with Kare Plus’ guidance. support, means I can confidently is maximized and results in the With an increase in demand, say I would have no hesitation in highest quality of care for Kare franchising is a secure route into recommending Kare Plus to any Plus customers. the market, and with plenty of potential investor”. And as the founder was originally room for growth, Kare Plus is a In addition to the three sites a franchisee of the brand, Kare ready-made business opportunity awarded in Ireland, the U.K. has Plus understands the franchising waiting for you. seen further expansion through the awarding of five franchise sites. What really makes Kare Plus unique in the U.K., Europe, and beyond?
• High quality control, management, and regulation • Workforce solutions within its own network, that are trained and properly qualified and vetted centrally • Well-invested infrastructure and platform for a long-term vision of expansion of its unique model into Europe and internationally, where demand is increasing rapidly • Continuous innovation and technology which is such a necessary requirement for the sector • A fresh and innovative approach to marketing • The highest quality of care above all else
Kare Plus’ tried and tested service endeavors to provide safe and responsive outcomes using
72 GLOBAL FRANCHISE | ISSUE 5.2 GLOBAL FRANCHISE 5_2 master_GLOBAL FRANCHISE 30/07/2020 10:27 Page 73 BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE HELEN DORON The leader EDUCATIONAL GROUP
Established: 1985 in versatile Number of franchised outlets: Over 1,100 Location of units: Albania, Austria, Bosnia and Herzegovina, Bulgaria, Chile, China, Croatia, Cyprus, Czech Republic, Ecuador, Estonia, education France, Germany, Hungary, Israel, Italy, Kazakhstan, Lichtenstein, Macedonia, Mexico, Montenegro, Panama, Peru, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, South Korea, Spain, Switzerland, Thailand, Helen Doron Educational Group is Turkey, Ukraine, Vietnam Investment range: committed to outstanding support, no €150,000 - €250,000 Minimum required capital: matter the circumstances €200,000 Contact: [email protected] s the world gradually HOLISTIC APPROACH helendorongroup.com reaches a new normal, Along with the unique methodology, businesses are exploring which empowers children to reach A the ways in which they their full potential, the company can offer exceptional service without constantly introduces new tools compromising on safety or structure. that provide valuable educational For Helen Doron Educational Group, insight, and prioritize the wellbeing the industry-leading education of children. franchise and winner of the coveted One of the latest innovations Global Franchise Awards’ Global from the Helen Doron brand is Mentorship Trophy, this transition yet another valuable video series has allowed for exciting new and website blog: How to Raise opportunities and the introduction Healthy Children. Hosted by of innovative tools. certified nutritional therapist, Sonal Shah, the 13-part series explores a variety of questions that parents may have about the healthiest habits for their children. This brand-new series highlights Helen Doron’s During the coronavirus situation, commitment to the the brand has supplied its network holistic development with pedagogic materials to ensure of the ‘whole child’, learning continues online. and is complemented The HELENDORON@HOME perfectly by the popular online lesson format has proven A Moment With Helen invaluable to students and teaching video series, in which staff who cannot currently meet in- the brand’s experienced person, and the remote education founder explores the training provided has allowed many aspects of raising teaching materials to remain bilingual children. relevant and informative, even during a period of EMBRACING unprecedented change. TECHNOLOGY IN In addition, franchisees could HANDLING THE take advantage of conveniently CRISIS organized marketing resources The brand’s shift to a under the HELENDORON@HOME host of dynamic learning minisite, featuring special tools resources doesn’t and digital assets that parents and stop with the two new children could benefit from, even informative video series. from home.
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The industry-leading adaptability doesn’t stop there; Helen Doron Educational Group’s annual master franchise conference, in which franchisees from 38 different countries come together to celebrate successes and plan ahead, was unable to take place in Lisbon as originally scheduled. Never one to step down from a challenge, the Helen Doron network instead convened in an online conference held in June, with all franchisees and head office participating in a lively discussion focused on ‘Moving on Together’.
DIGITAL INNOVATOR You’d be forgiven for thinking that transforming the existing Helen Doron Educational Group learning materials into a temporary remote teaching solution is all the brand has been working on, as this was a considerable undertaking that utilized the expertise of the group’s experienced network. No, this forward-thinking franchise also recently released which can then be sent to the MOVING ON TOGETHER not one, but three cutting-edge TeenBuzz studio team. Users can While all of the brand’s innovations proprietary applications to engage also set an alarm clock that wakes are certainly appealing to new children from three years old, all them up to TeenBuzz Radio, and franchisees, the existing Helen the way into their teenage years. stream downloadable podcasts Doron Educational Group franchise The Bedtime Stories apps are including Weird News and Helen network has been consistently perfect for children ages three Doron’s Word of the Day. supported throughout the past (English speakers) up to seven challenging months; showcasing (non-English speakers), and involve the brand’s unwavering dedication the lovable Grandma Rosella telling to supporting and guiding a selection of beloved bedtime members of the Helen stories, accompanied by illuminated Doron family. text and beautiful illustrations. During the coronavirus crisis, Each story takes about seven to for example, master franchisees 10 minutes – the perfect time to were provided with ongoing help little ones drift peacefully commercial support and business off to sleep. guidance, to ensure that they don’t The Alphachat app, meanwhile, just remain open, but flourish even is aimed at children aged five during turbulent times. to nine, and makes reading Financial tips for franchisees and writing easy and fun with were also circulated throughout Alphaboat and other colorful the Helen Doron community, and friends. The player needs to informative Facebook forums communicate with friends by were created to encourage and sending them emoji messages, strengthen the knowledge sharing but they must react quickly, present throughout the network. In sending each friend the correct addition, continuous surveys were emoji and not leaving any of distributed amongst franchisees, them unanswered. so that their needs are always Last but certainly not least, considered and represented in Helen Doron Educational Group future developments. has upgraded its popular With this level of support, TeenBuzz Radio app, featuring innovation, guidance, and several new features designed ingenuity, it’s no wonder that to engage and educate an the award-winning Helen Doron older teenage demographic. Educational Group is New features include the a platform loved by pupils, ability to record a voice parents, teachers, and message directly in the app, franchisees alike.
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AT A GLANCE FASTSIGNS INTERNATIONAL, Proven to INC. Established: 1985 Number of franchised outlets: Over 725 adapt amid the Location of units: United States, Canada, Chile, England, Grand Cayman, Puerto Rico, the United Arab Emirates, Malta, and Australia (where centers operate as SIGNWAVE) pandemic Investment range: Cobrand: $96,881 – $206,501 Conversion: $106,054 – $219,842 New center: $218,596 – $298,679 How FASTSIGNS International, Inc. has supported Minimum required capital: $80,000 Contact: [email protected] / the community and helped its franchisees succeed +1 (888) 285-5935 during unprecedented times fastsigns.com
he COVID-19 pandemic demand from nearby organizations to has proven to pose produce PPE items like face shields, T challenges to business safety shields and intubation boxes, owners across all resulting in tens of thousands of PPE industries around the world. products for local hospitals across While the landscape has changed the country. rapidly due to shifts in guidelines, With franchisees utilizing their regulations, and more to keep supplies and services to focus on individuals safe, one thing that has providing solutions to protect their remained consistent is a business’ communities, FASTSIGNS centers need to communicate. have displayed the ability to adapt With a proven business model, and persevere despite the state of international brand recognition, the world. As the demand for signage and unparalleled training and continues to not only stay relevant, support, FASTSIGNS International, but increase, FASTSIGNS has an Inc. has remained on the cutting- ongoing commitment to upholding edge of its industry, and through a highly-adaptable company, these unprecedented times the providing visual marketing solutions support of its franchise system has that meet the ever-evolving needs helped its master franchisees of its franchisees and customers and individual franchise internationally. owners stay afloat. From the United States to Chile, As many businesses, retail and across several oceans to reach stores, salons and restaurants Australia, the United Arab Emirates, were mandated to close their doors Malta, and France, FASTSIGNS temporarily in an effort to reduce locations are all over the world. Its the spread of the virus, FASTSIGNS growth has been strategic, says Mark centers in the United States were Jameson, EVP of franchise support deemed essential businesses and and development of FASTSIGNS were able to continue operating International, Inc., focusing on as they provided signs, graphics enlisting strong master franchisees — and visual communications. Local both prior to and post the pandemic franchisees quickly pivoted their — capable of building out an services to best support their customers and local communities entire country. to inspire safe environments. Since early March, broader WORLD-CLASS TRAINING COVID-19 sign products related to AND RESOURCES social distancing, germ prevention, FASTSIGNS is known in the industry operational and directional for equipping its franchisees with signage, and more resulted in more training and tools vital to securing than 90 per cent of FASTSIGNS’ the ongoing success of each location sales. Additionally, franchisees — wherever they operate. FASTSIGNS shifted gears based on local has more than 120 support staff,
76 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - XxxxxxxxxxxFASTSIGNS GLOBALFRANCHISEMAGAZINE.COM 77 GLOBALFRANCHISEMAGAZINE.COM “It may seem like we’re casting we’re seem like may “It “Franchisees shifted gears gears shifted “Franchisees demand local on based organizations nearby from items” PPE produce to throughout North Africa, Southwest North throughout America. and Latin Asia, Europe, because thewide net, but that’s a business opportunity FASTSIGNS is designed to succeed anywhere, environment,” in today’s especially long as there “As Jameson. said businesses and organizationsare and graphics, needing signage, visual communications, FASTSIGNS to fulfill that need.” can be there
Today, FASTSIGNS has more FASTSIGNS Today, said Gonzalo Alcayaga Granic of Granic Alcayaga said Gonzalo that the mix believe “We NEOMARK. and experience the power between and the brand of the FASTSIGNS will be the perfect team NEOMARK very a to develop formula successful business in Chile, and South America.” perhaps and than 725 independently-owned in nine centers FASTSIGNS operated Statescountries including the United Kingdom,and Puerto Rico, the United the Cayman, Canada, Chile, Grand France Malta, Emirates, Arab United operate centers (where Australia and continuesThe brand as SIGNWAVE). to set its sights on finding master Zealand, Québec, New for franchisees as countrieswell as India, and Brazil,
Across all nine countries,Across worldwide benefit“Franchisees opened its first FASTSIGNS In 2019, company a family are we “Although FASTSIGNS’ training and support training FASTSIGNS’ RowlandLinda Sultmann and Dean FASTSIGNS is at the forefront of is at the forefront FASTSIGNS and its offerings development industry to signage traditional beyond extend architectural include digital signage, décor. and interior signage, so range, product diverse our from the unique needs can serve they Jameson. said customers,” of their global that to be a truly know “We products offer only can’t we franchise, back home in the U.S. popular that are need signage,worldwide While people visual communications, and graphics, often consume these things in they depending ways on where different and do business.” live they the signinglocation in Chile following with agreement franchise of a master to expand NEOMARK sign company sign businessThe full-service in Chile. Chile, committedbased in Santiago, additional locationsto open five Santiago.throughout in the graphicsyears with many be better. can always we industry, us that it is able showed FASTSIGNS business to our to help us strengthen with growth level, it to the next take country,” outside our potential even Launching an American brandLaunching an many has its benefits. In overseas technological countries, U.S. industry in the signage advancements ahead, meaningyears several are is a demand in athat once there home country, franchisee’s master out worked has already FASTSIGNS methodologies. the best usage STAYING AHEAD OF AHEAD OF STAYING THE COMPETITION resources include its onlineresources sales training, University, FASTSIGNS center a new program, a mentor leadershipbusiness consultant, sales and more. academy, Australia in franchisee the master are operate centers where FASTSIGNS, for to becoming a Prior as SIGNWAVE. FASTSIGNS, with franchisee master a business consultant for was Linda learningAfter Australia. in the brand resourcesabout all of the tools and to its international offers FASTSIGNS decided to transition they partners, business consultants to master from to help catapult expansionfranchisees the country. throughout sign franchise. boasting a support ratio of 1:6 ratio boasting a support of any the largest worldwide, BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE Expanding ACCURATE FRANCHISING
Established: 1987 your business Contact: Tipton Shonkwiler, [email protected] through accuratefranchising.com A VARIETY OF SERVICES AFI provides a wide range of services to help your business achieve its franchising goals. Its franchising experts will tailor each business plan to match your desired level of success. A sampling of the services provided by AFI include: Accurate Franchising, Inc. can provide you with the • Franchise development tools to achieve growth goals • Lead generation • Sales support – domestic and global • Real estate assistance hether you are an Its first-hand experience with • International expansion established franchise franchising gives it an intimate • Franchise development looking to grow, or a understanding of what a franchisor W website small business looking needs to succeed. With an • Resale program to franchise your brand, Accurate established global presence in • Franchise disclosure Franchising, Inc. (AFI) can provide Sydney, London, Dubai and Toronto, document/franchise you with the tools to achieve AFI consultants have worked with agreements these goals. over 2,500 franchisees worldwide, • Ongoing franchise sales and As an affiliate of the United providing them outstanding support marketing programs Franchise Group (UFG) and led by as they learn and grow. founder and CEO, Ray Titus, AFI has “When you work with AFI over three decades of experience in franchising professionals, you will FRANCHISING YOUR the franchise industry. Backed by a benefit from our expert eye as we CONCEPT franchising powerhouse, what sets AFI assess your business and develop a If you’ve ever thought that your apart from other consultancies is that customized plan with the franchise business could be successful as a AFI is the only franchise development consultation services your business franchise, the following questions consulting firm that also operates its needs,” said Tipton Shonkwiler, have probably crossed your mind: own franchise brands. president of AFI. What are the costs involved? How long will the process take? Does it even make sense to franchise the concept? Fortunately, an experienced and reputable franchise consultant like AFI can help you answer those questions. As an AFI client, you should expect to go through the following five steps when converting a business to a franchise brand:
1. Complete a franchise feasibility study: If you think this is going to be an easy process, think again. Converting an independently- owned business into a successful franchise operation is a labor- intensive process. It’s well worth the effort for a franchise-ready business but wasted time if you’re trying to grow a business that just won’t work as a franchise model. AFI will review a series of questions with you about
78 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - Accurate Franchising
a franchise, or to expand an existing franchise. You’ll need a business plan to show prospective investors how you will use their money to provide a fair return, and you may also need access to reliable funding sources. AFI helps their clients craft clear, comprehensive business plans that can be presented to private investors or to our qualified financing partners. When the above steps are followed and the right owners are trained, set up, supported, and motivated, great things can happen for them and the franchisor.
ALREADY FRANCHISING? AFI CAN HELP AFI’s expertise doesn’t stop at converting businesses to franchises. If you’re thinking “I want to grow my franchise,” then AFI provides a wide variety of services to clients who are “When you work with AFI franchising already successful franchisors. Whether a franchisor is looking to professionals, you will benefit from up the ante on existing sales techniques, enhance marketing our expert eye as we assess your strategy, break into the international market, or explore resale options, AFI business and develop a customized consultants can help you improve every plan with the franchise consultation part of your business. GOING GLOBAL services your business needs” Are you an established franchise that doesn’t need to grow domestically, but your business to determine what 4. Devise an effective sales plan: is looking to expand internationally? sets you apart and whether it can When your franchise system and International expansion can be an be duplicated. The answers will help your brand message is in place, you’ll exciting and rewarding next step. AFI’s AFI determine whether it’s the right want to introduce it to people who international consulting division can time to convert your business to a are most likely to get excited about help take your brand global. franchise or not. your offer and convert to a sale. Over the years, AFI has helped AFI uses proven lead-generating many clients identify global growth 2. Build your infrastructure: strategies to find qualified opportunities based on sound criteria Franchise infrastructure includes candidates who will give including population, culture, and everything your franchisees will need your franchise opportunity local tastes. Its team of international to open and operate a successful serious consideration. franchise consulting professionals can business, including a franchise launch worldwide expansion programs, disclosure document, franchise 5. Don’t forget about financing: as well as plan and deliver a master agreement, operations manuals, Don’t forget that you’ll need sound license agreement to expand brands brand policies, training and support, financing to convert a business to across the globe. and more. Together, these resources make up your franchise system – the tools and programs that make your idea attractive to potential investors.
3. Define your brand: Great franchises begin with great brands, and great brands are based on unique attributes that distinguish your product or services from those of your competitors. AFI can help you position your brand based on features that make your offer stand out from others in the industry. Once that’s done, AFI will help you create or upgrade your website and other marketing materials to communicate your brand message to both potential franchisees and their customers.
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Singapore: the bridge between East and West With its strategic location at the crossroads of the world paired with a powerful, open economy, Singapore is the ideal proving ground for franchises looking to expand further into Asia
WORDS BY FARRAH ROSE & STEVEN LEE
ingapore has franchising strategy. Despite its Freedom from famously positioned relative openness to a variety government legislation S itself as one the of cultures and business styles, is both a pro and a con world’s most vibrant franchisors need to ensure they International business and free financial centers. Combined with are well-versed in the city-state’s trade have always been at the its government’s avidly pro- unique nuances and attitudes heart of Singapore’s success, and business attitudes and policies, before investing in Singapore. its government has always worked THE AUTHOR it is an extremely attractive hard to ease red tape and other Farrah Rose is head destination for all manner of Franchises are restrictions on those responsible of international businesses. It is no wonder development at The very much part of for creating wealth. For franchisors, that more than 7,000 Franchising Centre, the culture this makes Singapore one of the and is a long-term multinational corporations Singapore’s success has largely easiest countries in South East member of the British have chosen Singapore as their been founded on its reputation Asia to expand into as there are no Franchise Association. regional headquarters. as an international trading hub. specific franchise laws that govern thefranchising As a result, Singapore is Foreign businesses and brands their activities within the state. centre.com one of the richest economies are very familiar to Singaporeans This allows for a great level in the region, both in terms and foreign investment is very of freedom in setting your own of spending power and talent much welcomed. Unsurprisingly contracts and agreements, and resource, making it an inviting then, franchising is very there is no requirement in law to destination for new and popular and well-received by have a franchise pre-approved established franchises alike. Even consumers who associate it with before it can sell and establish as early as 2012, Singapore was the availability of consistently itself. This is in stark contrast estimated to have more than 600 high-end products and services. to Malaysia, for example, where Steven Lee is CEO franchise concepts attracting Many of these franchises have stricter laws demand franchisors of LSP Global more than 40,000 franchisees. also been associated with the register themselves with the Pte Ltd., and is a Consequently, Singapore is growth of the ever-popular government first and show proof partner in Franchise an excellent starting point for shopping malls, which is why food, Pool International. of profitability before they can sell expansion into Asia, as it allows beverage and retail franchises lspglobal.com their franchise license locally. franchisors to test concepts have performed especially well Generally speaking, and hone their strategies in recent years. With that strong Singapore’s free trade before continuing on to more foundation, potential franchisees policies can challenging territories. are especially risk-tolerant As with moving into any new when considering buying into a territory, however, preparedness franchise, particularly when it is key in deploying a successful involves a well-known brand.
“Basing your Asian operations in Singapore is a tried and tested formula that has led to a great deal of success for any number of international brands”
80 GLOBAL FRANCHISE | ISSUE 5.2 expense initially, but this short- “Franchising is very popular and term investment will pay off in the long-term by providing you with a well-received by consumers who solid base for further expansion in associate it with the availability the region. The right people in of consistently high-end products the right place Considering that many and services” franchisors do view Singapore as the gateway to Asia in so many respects, the need for having mean lower costs and shorter great care to research the the right people on your side is timeframes in which a franchise market carefully before making essential. Putting in the time can get up and running – a very their move. and effort to work with local tempting environment for those The obvious example of this is in consultants and international used to tighter legislation. However, F&B, where franchises are well- experts right from the beginning this does mean that there is known to adapt their menus to suit is a critical first step in any nothing in the way of franchise- local taste, but this also applies market, but, in Singapore, it can specific legislation to back you across the board to almost any be particularly rewarding in both up should something go wrong franchise. This is an area where the short- and long-term. Having between you and your franchisees. local experts can help you carry a strong support base here will For this reason, it is worth spending out essential market research, and serve as a building block later for the extra time to make sure that more internationally experienced selling your concept further afield your franchise agreements cover consultants can help you to develop in South East Asia and beyond. every eventuality, and working with the appropriate adaptive strategies. Basing your Asian operations in local consultants is invaluable in It may seem obvious, but Singapore, with the backing of ensuring that your paperwork is as franchisors from the U.S. and the very best in experience and water-tight as possible. Europe also need to make sure expertise, is a tried-and-tested they take into account the formula that has led to a great time difference involved with An international, deal of success for any number working in Asia. This may mean but distinct of international brands. cultural identity that you will need greater local Despite the great success of a representation to deal with any number of Western brands in problems that arise, and to make Singapore, and its very welcoming sure that your franchisees are attitude towards international receiving all the training investment, franchisors should and support they not assume that what works for need. This will them in the U.S. and Europe will translate automatically work there. While to more Singapore is arguably the most accessible starting point for expansion into Asian markets, franchisors still need to take
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Franchising in the Greater Asia region coming out of COVID-19 With the effect of COVID-19 disrupting markets across Greater Asia, we turn to region specialist Bill Edwards and his network of experts for a run-down on how franchising is faring in key territories
WORDS BY WILLIAM EDWARDS
reater Asia is a favorite well and have flattened the curve in region of mine as I • Confirming candidates are still their respective countries. G lived in mainland interested in making investments In mid-June this year, we held China, Hong Kong and in new businesses our first in-person VF International Indonesia, and was the master • Increased due diligence on Franchise Business Matching event franchisee for a U.S. service brand candidates to ensure they still in Ho Chi Minh City, Vietnam, in China. The information in this have the funds to acquire a and received very good interest THE AUTHOR report is from a variety of sources franchise license post COVID-19 from prospective franchisees and William 'Bill' Edwards, and is current as of late July 2020. • Increased international investors, with particularly strong CFE, is CEO and a global advisor to chief The Greater Asia region covers candidate video and email investor interest in F&B, education, executives, of Ed- India through Japan and China communications due to and retail franchises. While both wards Global Services though New Zealand. This has the inability to travel to Indonesia and the Philippines’ (EGS). Contact Bill at been a very active region for other countries borders are currently closed, we bedwards@edwards- new franchise development for • Video franchise expos are are pushing forward with Virtual global.com or +1 949 more than 20 years. While most introducing investors across the Franchise Business Matching 224 3896. Edwards new franchise and licensee region to new brands events in Jakarta, Indonesia, and Global Services, Inc. developments initially dropped • Video discovery days to initiate Manila, Philippines, both events (EGS) provides a com- sharply after the start of the candidates to the brand before happening in August 2020. Our local plete international solution for U.S. fran- COVID-19 crisis, by late May 2020 a face-to-face meeting in the partners in both countries believe chises going global. franchisors were again in touch franchisor’s home country there is pent-up demand for new edwardsglobal.com with new and existing international franchise business opportunities, candidates with a somewhat Southeast Asia and these business matching different approach: overview events will draw solid interest from We continue to see ongoing investors and entrepreneurs. discussions between specific While some franchisors stopped countries in Asia regarding the their international franchising “Since late May, our re-opening of borders, albeit in efforts, many have chosen to a limited fashion and which may plow forward company has observed require some form of quarantining upon arrival – for some countries, renewed interest in quarantining may not be required. Countries involved in these master franchises in active discussions include China, Korea, Japan, mainland China in the Taiwan, Vietnam, Thailand, Myanmar, auto service, fitness, and Cambodia – all of which and F&B sectors as have handled the current China came out of the pandemic COVID-19 crisis first” relatively
82 GLOBAL FRANCHISE | ISSUE 5.2 Indonesia Although Indonesia went through a shut down period and a major decline in its economy, its gross domestic product is still expected to grow at a three per cent rate in 2020. New franchise openings have continued including the latest Wingstop location in July. Malls were shut down for several the Australian economy and its months, closing most of the franchising activity in its tracks. international F&B brands as most with the help of As the economy opened in June, middle-class Indonesians shop government and leads generated from our DC in large mega-malls where the franchise consultants Strategy franchise lead generation international brand restaurants who are based in the region like division has grown by almost 100 are primarily located. ourselves. Recent deals in Vietnam per cent coming off its April floor as and Indonesia point to continued franchise activity has been growing India interest for proven franchise over the last three months. "India went into a systems, including Russian pizza “As unemployment is at record complete lockdown franchise Dodo Pizza and fitness highs here, we are seeing more on March 25. Things chain 9Round. people who are making franchise remained under Even the Taiwan External enquires to buy themselves a job control until the third week of May, Trade Development Council has and take responsibility for their when the country first started organized franchise webinars for future and we see an excellent easing lockdown restrictions in a Taiwanese franchises seeking future in franchise sales.” bid to help the economy recover. area and master franchisees in Rod Young, global chairman While rules differ in each state, Thailand and Vietnam. The Korean of Cartridge World and guidelines released by the Ministry Trade-Investment Promotion chairman of DC Strategy, of Health and Family Welfare on Agency is also active in assisting Sydney and Melbourne June 4 directed restaurants to run Korean franchises expanding into at 50 per cent of their capacity. neighboring countries. This section China Social distancing, sanitization at was provided by Sean Ngo from VF Even during the the time of opening and closing Franchise Consulting, one of Asia’s shutdown, Dairy of the restaurant and evening leading franchise consultancy with Queen, which has curfews have affected businesses. offices in Vietnam and Singapore about 1,100 units in “Restricted use of air- Here are comments from our China, saw new store openings. conditioning to maintain sources about what has Since late May, our company has temperature and average been happening in specific observed renewed interest in temperature of 24°C to 30°C countries around this region master franchises in mainland with a humidity level between related to franchising: China in the auto service, fitness, 40 per cent to 70 per cent and F&B sectors as China came in many states is also Australia out of the COVID-19 crisis first. impacting dine-in business, “Franchise activity Some international F&B brands are with many restaurants has started recovering seeing record-high weekly sales trying to keep open with from the March and despite the lack of foreign tourists. delivery and takeout orders. April lows where “Domino’s is making a bet on “As malls reopened, COVID-19 stopped China. The pizza chain is investing retailers are negotiating at least $40m into its master rent with the mall owners franchisee there and has big in a bid to make their hopes for its development in the operations viable. There is fast-growing economy. The Ann renewed interest in acquiring Arbor, Mich.-based pizza chain unit franchises and large on Thursday said it has invested private equity groups are $40m for a minority stake in Dash once again interested in Brands, which owns and operates acquiring international brand Domino’s locations in China,” master franchises.” RestaurantBusiness reported on Rajeev Manchanda, managing July 17, 2020. director, Inventure India, New Delhi
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Japan Government statistics indicate 85 per cent of companies in the Japanese retail industry stated that they experienced some level of setback from COVID-19 in regards to Street restaurant will be the second their activities. All areas on New Zealand shores and forms of Japan have reopened part of a wider roll-out plan of but business visitors approximately 60 restaurants will be asked to undergo across Australia and New Zealand temperature checks and over the next five years.” disinfect their hands with Simon Lord, Franchise sanitizers. Visitors without New Zealand, Auckland masks will be refused entry. Tokyo Disneyland reopened The Philippines with social distancing. While Despite a relatively low the majority of restaurants number of COVID-19 have reopened, it may take cases, the government six months for business to return of the Philippines to normal. shut down business of all types for Japan will be re-opening with several months. Major international some of the major trade shows F&B brands such as Chili’s, Denny’s, from September 29 when Japan Kentucky Fried Chicken and Franchise Show will be held in McDonald’s reopened for takeaway Tokyo on a smaller scale. This and delivery in late May. should launch the revival of franchise development in Japan. Thailand “After confronting the New Zealand COVID-19 situation, “There are lots of good most Thai households things happening have boosted with business – new awareness of the importance of franchisors are savings and income diversification. preparing to break forth and existing They are also considering becoming franchise systems are appointing their own boss. We are getting new franchisees as many people are increased requests for advice on keen to own their own business and which are the best franchises to help shape their destiny.” acquire. The franchisor market Stewart Germann, Germann Law leaders say they expect to sell Office, Auckland more franchises than ever coming out of COVID-19.” “Taco Bell opened their second New “Seth” Sethaphong Phadungpisuth, Zealand restaurant in the heart of CFE, managing director, Gnosis the Auckland CBD. The Shortland Company Limited, Bangkok
“While some franchisors stopped their international franchising efforts, many have chosen to plow forward with the help of government and franchise consultants”
84 GLOBAL FRANCHISE | ISSUE 5.2 SHOW PREVIEW: PARTNER CONTENT
Investors set to AT A GLANCE THAILAND FRANCHISE & BUSINESS flock to Thailand's OPPORTUNITIES 2020 (TFBO)
Where: Hall 104, BITEC, Bangkok, Thailand premier franchise When: 14 -17 October 2020 Contact: [email protected]; [email protected] exposition thailandfranchising.com
The Thailand Franchise & Business Opportunities show takes place on October 14 – 17 at BITEC, Bangkok
he popularity of the Kittiboonya suggests investors franchise business grab this once-a-year opportunity T model in ASEAN to meet with over 100 franchisors continues to grow, as to discuss their business models can be seen from the rising number and find out more about their of new outlets and the entry of franchise's return on investment. new players into the Thailand “We intend to open this platform and ASEAN markets. More new between franchisors and investors franchise brands enter the market for dialogue and exchange of every year, while existing ones information. We also offer seminars successfully manage to expand to provide knowledge for startups their businesses in domestic and and investors,” he said. international territories. It is recommended that visitors As the biggest international pre-register online to receive franchise and business regular show updates and to opportunities show in ASEAN, the make advance appointments with Thailand Franchise & Business exhibitors to maximize their trip. Opportunities 2020 (TFBO) will serve as a highly effective platform between franchise brand owners and investors from Thailand and international markets. Kavin Kittiboonya, managing director of Kavin Intertrade and the show organizer, has revealed that TFBO 2020 will offer more than 10 franchise business categories for entrepreneurs who are looking to explore new investment NEED-TO-KNOW INFO opportunities boasting high returns. • Thailand and ASEAN have a combined 660 million population and bright growth potential for international “Thailand Franchise & Business franchise brands • Thailand alone has Opportunities 2020 will serve as a highly approximately 160 brands with over 14,000 outlets effective platform between franchise • Almost 70 per cent of local exhibitors return to the show every year brand owners and investors from Thailand • The event can draw around 10,000 visitors and investors and international markets” from 40 countires
GLOBALFRANCHISEMAGAZINE.COM 85
AT A GLANCE AT BOCONCEPT Established: 1952 units: 300+ Number of franchised of units: 65 countries Location the world around - €650,000 €350,000 range: Investment up) a multi-unit set (For capital: €500,000 Minimum required worth liquid funds, €1.5m net Contact: [email protected] boconcept.com/franchise With several multi-unit multi-unit With several why we are already investing investing already are we why in this segment. significantly we is also something E-commerce will be taking into account in these years.” next opportunities investment franchise BoConcept offers globally, available business concept, an attractive cash flow with a quick-generating and margin model, high gross low meter, square per turnover minimal employees inventory, and no royalties.
“Retail is constantly changing, changing, “Retail is constantly “We can open in any market market can open in any “We RETAIL INNOVATOR RETAIL journey franchise BoConcept’s Parisian with its first began has launch in 1993, and the brand tastes and been adapting to new at the since then to remain trends world. of the furniture forefront and thus it is difficult to predict is no doubt that There the future. to be agile and able will have we the best customer to provide said stores,” in our experience furniture “The contract Nielsen. a huge also presents industry and that’s potential market, Belgium, Switzerland, and Italy. and Italy. Belgium, Switzerland, the possibility excluding aren’t We find we if elsewhere, of developing partners. the right multi-unit is the potential of there where our BoConcept stores; three-plus a global to have concept is proven do not really we and scalability, limitations.” see any
acked by over 25 years of years 25 over by acked experience, franchising BoConcept is a retail been that’s offering
B “We are aiming to have more than than more aiming to have are “We Expanding BoConcept’s footprint footprint Expanding BoConcept’s ISSUE 5.2
| is at the center of everything the the of everything is at the center savvy, looking for does, and it’s brand operators multi-unit experienced Danish reliable can help spread who and markets to as many furniture as possible. regions said Brian years,” in a few 600 stores Nielsen, global business Hedelund and The U.S. director. development as key been earmarked have Europe and BoConcept markets, development with franchisees is hoping to partner to open the capability have who markets, smaller “For stores. several one only aiming to have are we DECADES OF EXPERIENCE started back The BoConcept story manufacturer in 1952 as a furniture The first Denmark. in Herning, opened in store BoConcept brand later, years in 1993 and 25 Paris a global as is recognized the brand premium offering organization, design to the interior quality customer. cosmopolitan-minded to partner franchise multi-unit continued region,” whole the develop “This could be the case for Nielsen. countries such as the Netherlands,
redefining the idea of ‘affordable ‘affordable the idea of redefining long time. In fact, very a for premium’ across open than 300 stores with more also one of the most 65 countries, it’s franchise retail internationally-spread of its kind. offerings reputation
to help further expand its footprint globally its footprint help further expand to
BoConcept is looking for multi-unit franchisees franchisees multi-unit is looking for BoConcept with a global global a with
“Our concept is proven to is proven concept “Our scalability” global a have Danish design design Danish BEHIND THE BRAND: PARTNER CONTENT PARTNER BRAND: THE BEHIND
Behind the Brand - BoConcept FRANCHISE 86 GLOBAL FEATURE
MEET MARTHA MATILDA HARPER, THE WOMAN WHO PIONEERED INTERNATIONAL FRANCHISING BACK IN 1891 How a poor Canadian house servant created an international franchise network, while her social entrepreneurial ethos paved the way for marginalized groups to succeed
WORDS BY JANE R. PLITT
GLOBALFRANCHISEMAGAZINE.COM 87 FEATURE
"Having overcome a horrid childhood of servitude from the time she was seven, Harper was well aware of the limited legal, social and educational options available to her as a poor woman”
herself – and ultimately others – women’s lives, which had been as by entering the business world. miserable as hers, but also a way No attractive options existed. to assure their loyalty. In a time Running a boarding house, taking when there were no computers, in washing, and working in a Zoom meetings, faxes, or any form factory were no better than being of instant communications, Harper a maid. Having overcome a horrid created a world workforce that, childhood of servitude from the once trained, would carry out her THE AUTHOR time she was seven, Harper was well Method consistently. This thereby Jane R. Plitt is aware of the limited legal, social assured customers the high Harper a prize-winning and educational options available standards would be maintained businesswoman, and to her as a poor woman. Instead, throughout the world. It also currently a visiting scholar/lecturer she pioneered a new option. She meant her franchisees – known as at the University oday’s surge of women capitalized on her Rapunzel-like Harperites – would willingly go to of Rochester and and immigrants entering floor-length hair, the proprietary wherever Harper assigned them. biographer of Martha the franchising world hair tonic formula she had been Matilda Harper. Her T has its roots in the bequeathed, and her well-honed Harper's influence books include Martha original creation of modern day retail ability to please. on franchising Matilda Harper franchising. Martha Matilda Harper, a Her concept was a public hair Today, women and immigrants and the American poor Canadian servant woman bound parlor for women, which was often find themselves seeking a Dream: How One Woman Changed into servitude for 25 years, dared to a concept not heard of in the career where they can financially the Face of Modern Victorian Age. To succeed, Harper leave Canada for Rochester, NY, where succeed and not endure current Business, Martha she would go on to create a franchise realized she needed innovative an pay disparities because of their the Hairpreneur, and network in 1891. vision and creative marketing. She gender or background. They may Martha’s Magical Hair Ultimately, she would grow her is credited with inventing the first have family obligations and want marthamatilda concept into a 500-plus world reclining shampoo chair with a a more flexible work environment. harper.org network of Harper Method shops cutout sink that allowed customer’s They have creative ideas and catering to healthy hair and skin care necks to more comfortably rest. energy that are being ignored or for men and women. British royalty As a result, Harper assured her stifled. Like Harper, they seek an and even George Bernard Shaw were new customers a pleasurable entrepreneurial outlet. part of her loyal clientele. experience. Instead of soap in their Franchising, with its proven Several revealing factors link eyes, her customers were treated model of success, established Harper’s efforts and success to today’s to a relaxing and memorable branding, supportive environment, emergence of female and immigrant experience. Brilliantly, her efforts and even the possibility of building franchising ownership. They include: created buzz and attracted others a business legacy is attracting to try the Harper concept. immigrants and women in • Limited options and financial When out-of-town women significant numbers. 41 per cent resources experienced the Harper Method, of new franchisees in the last two • The desire to break loose and they wanted Harper shops in their years are women. They account prove one’s worth communities. Bertha Palmer of the for nearly 30 per cent of franchise • A structured system to succeed Palmer House fame was particularly ownership with between nine-to-17 and compete demanding, insisting Harper locate per cent co-owned by a woman. • Ability to delight customers a Harper shop in Chicago in time This is a big jump from the general • Determination for the Columbian World Exposition business world, when in 2007, 20 • Loyalty there. That was when Harper was per cent were female-owned. forced to come up with a doable Looking at top leadership in the Unfortunately, Harper’s lessons business expansion model. Bank Fortune 500; 95 per cent of CEOs had to be relearned because her financing was out of the question, are men. Sue and Gemma Tumelty’s success was buried until recently. as was venture capital. Instead, story of choosing a logo for The HR All of us, especially women and Harper conceived franchising and Depot, a new franchise, speaks to immigrants, can learn from her simultaneously pioneered social the fundamental belief in women’s strategic innovations. entrepreneurship since she would potential. “It was the colours of the Harper had few options when she only allow fellow poor women to suffragettes, women’s equality and launched her first hair parlor for own Harper franchises. liberation,” says Gemma. “That’s women in 1888: she could remain This assured Harper of both very much the ethos that I’ve been a servant or she could empower a positive way to change these brought up with: women can do
88 GLOBAL FRANCHISE | ISSUE 5.2 HARPER’S TEN COMMANDMENTS OF anything men can do.” was an open arena that men had not BUSINESS SUCCESS Foreign-born citizens are creating yet entered, and she could launch 1 Dare to dream and persevere businesses in record numbers. her new concept of public hair care. 2 Seize opportunity They make up about 14 per cent Similarly, women and immigrants 3 Capitalize on your assets of the U.S. population, but 49 per are seizing opportunities to provide 4 Delight the customer cent of fastest growing businesses distinctive approaches in childcare, 5 Make customers your have an immigrant co-founder/ health, or food services that resonate marketing agents owner. Often immigrants speak with their core understanding of 6 Think outside the box multiple languages, encouraging market potential. 7 Develop win–win strategies their brains to think creatively for As our world meets new 8 Lead and brand 9 Listen to and reward staff multiple solutions. The success of challenges, we should be open 10 Celebrate your EuroCarParts, which was launched to the changes these women and achievements by Ugandan refugee Sukhpal Singh immigrants will bring to their Ahluwalia and sold for £280m in operations. They will bring different 2011, reflects the fundamentals cultural and operational styles. It solution to keep parents coming, of why women and immigrants is said that women often are more but also cultivated future Harper are succeeding in franchising. able to balance multiple customers by delighting them at early Ahluwalia said: “When you’ve fled priorities, pulling on both the ages. Today, the issue of childcare for your life across the world to right and left side of their remains a key need for families. be safe, I think you feel like you brains, something essential for Perhaps women and immigrant have a lot less to lose later in life, successful entrepreneurs. franchisors will bring a broader and maybe you don’t fear things in Networking likely will be expanded societal perspective about the same way as others. I learned and cultivation of team thinking and success. Nearly 100 years ago in from my mother and father that support will prevail. Because their 1928, Harper identified the great resilience and decision-making upbringing has been different, they achievement of the Harper Empire, that it takes to survive in life- may be more able to think outside saying: “I believe that the great threatening situations, gave me the the box and in many ways be more achievement of the Harper Method tenacity, appetite and drive to make innovative. Their operations may does not consist of the large something of myself.” generate more loyalty as Harper’s number of our shops – though the did because they include others in sun never sets on them. It is not Distinctive approaches decision-making. counted by the daily dollars our Various analysts suggest that because Harper encouraged customers cash registers record. It does not franchising is expanding into new to bring children into the Harper rest on the scientific perfection of spheres like travel and hospitality, shops, where they could play while our treatments and our formulae, advertising and sales, child services, their parents were groomed. Harper or wholly in the service we give. The this explains why more women believed it was both a practical great achievement of the Harper and immigrants Method is the women it has made.” are entering Since we face new political franchising. I realities, health crises, and ongoing disagree. Harper inequitable treatment of people, entered the beauty we would be wise to embrace these world because it different franchising entrepreneurs who may value both monetary success and social impact. However, unlike Harper, whose model was buried, it would be wise for the business schools and publications to learn from and credit women and immigrants’ achievements, while showcasing new faces with new approaches to succeed.
GLOBALFRANCHISEMAGAZINE.COM 89 ADVICEINSIGHT
How to ramp up your resilience and bounce back from change and challenge While some people are born with attributes that move them forward despite setbacks, it's also true that we can develop resilience through life experience
WORDS BY KARLIN SLOAN
n order to get events that happen to you or ability to prevail. our teams and around you?) According to recent research I organizations to conducted on U.S. soldiers, we function at their Many people believe that some of have proven that we can handle peak — and to address the issues us have the ability to thrive under adversity, get back up, and return we’re facing right now — it’s up stress, and others don’t; that we’re to daily life after a traumatic or to all of us to take a look at our either born tough or weak, and our challenging experience. If we use THE AUTHOR own ability to bounce back from circumstances dictate how we turn a bell curve, we can place this Karlin Sloan is a global adversity, to overcome and work out. I am a firm believer that we large group of people under the leadership and development coach, through challenges, and to use can all learn to be resilient, and our center of the bell. At one end CEO of Sloan Group those times to learn, grow, and ability to bounce back is not based of the bell curve, people International and breakthrough in order to thrive on our genetics or even our life experience chronic author of Inspiring versus just survive. experience. We all have it in us; we Post Traumatic Stress Leadership for Resilience is the ability to just have to activate it effectively. Disorder. They rarely Uncertain Times recover from or adjust easily to The most powerful, effective get past the trauma misfortune or change, and the managers and leaders are those and do not regain data is in – we are capable of who step up to a challenge and face their former level incredible feats during times of it with flexibility, courage, and the of functioning. duress. In organizational culture, ability to inspire others to follow The other end of resilience is at the core of a them into the unknown. They the bell curve healthy and effective work may not know how strong they is what environment. Resilience are before they are tested, but positive means that we can transcend they have confidence in their present circumstances by accepting reality and focusing on a positive future. Let’s begin with a simple model of what builds resilience – it’s all in your relationships:
1. Relationship to self (are you confident, optimistic, and able to manage your emotions?)
2. Relationship to others (do you feel supported and connected?)
3. Relationship to your external environment (how do you interpret the
90 GLOBAL GLOBAL FRANCHISEFRANCHISE || ISSUEISSUE XX.X5.2 on what we don’t have, can’t do, or are lacking in, we can broaden and build our feelings of uncertainty and weakness. When we focus on our personal strengths we build our popularly confidence, optimism considered and positivity. the “father of positive psychology”, defined learned 2.) Build relationships and optimism as the habit of attributing community. In a time of one’s failures to causes that are increased social distancing and psychologists external (not personal), temporary virtual workplaces we need to be now call “Post (not permanent), and specific ever more conscious of building a Traumatic Growth”. (limited to a specific situation). sense of team and our individual These are people who So, an optimistic employee will trusting relationships. That take their experience and view a poor performance review may mean overcompensating use what they’ve learned as an opportunity to learn and by communicating much more to come back better than ever, grow. The review is seen by the than you typically would, and with new energy. Resilience comes employee as related to a specific appreciating people as much as not from what happens to us, but situation (this review), temporary possible verbally and in writing. from how we react to what happens (a one-time occurrence), and Appreciation goes a long way, to us. It’s true that some people external (addressing specific even a small thank you for a are born with a set of attributes work performance rather than a positive contribution, a good that naturally move them forward personal attack). attitude, or a great work ethic. despite setbacks, but it’s also true This approach is called an that we can develop resilience individual’s “explanatory style”. 3.) Watch your words. The through life experience and It is how they explain events in stories you tell are powerful, through conscious practice. the world. Numerous researchers for good or for ill. If you take Making challenge into have associated an optimistic this week to focus on what you opportunity is simpler than it may explanatory style with better say out loud and make sure to sound. The first, most important academic, athletic and work practice discipline around your thing is our mindset. This is performance, better coping “explanatory style” it will make basically the lens through which skills, less likelihood of a powerful impact. When you we view everything in our life and succumbing to depression and want to complain, think first work. When we have confidence and better physical health. and reframe that complaint into optimism, much can be achieved. So, what does this mean for a request or action. When you Whatever our circumstances are, building your own resilience in want to tell we can look at those circumstances yourself and in your workplace? a negative from an optimistic – or pessimistic The first three steps are: story, reframe – viewpoint. It’s up to us! it into an What we know from positive 1.) Focus on your own individual opportunity psychology is that optimism is not strengths. When we focus, we to learn from something we are just born with, it broaden and build what we focus hardship or difficulty can be learned. Martin Seligman, on. We have a choice – if we focus versus collapse under it.
GLOBALFRANCHISEMAGAZINE.COM 91 BEHIND THE BRAND: PARTNER CONTENT
Be a part of AT A GLANCE CeX
Established: 1992 the retail Number of franchised outlets: 333 Location of units: U.K., Ireland, Spain, Canary Islands, India, Portugal, the Netherlands, Mexico, Poland, Australia, and Italy Investment range: $1.5m - $3m revolution Minimum required capital: Varies Contact: webuy.com/franchise webuy.com/franchise CeX continues to open stores accross the globe and is looking for master franchisees to help grow its second-hand success “CeX has provided the structure make a proposition to consumers that leave them with no reason and support to buy new. Second-hand, as an alternative to buying new, has required for us to some compelling arguments: reach our goals” • It’s better value for money • A unique selling proposition: communications, and computer- exchange what you don’t want, related goods. for something you do As a master franchisee, you’ll • Customer care can be better than take on the mantle of the franchisor, that of new retailers recruiting sub franchisees within your • New items devalue instantly designated territory. You will be on when opened or soiled, but hand to help them build their business, second-hand items can be help them market the brand, and sold again for a similar value. ensure compliance. No quibble warranties can be offered with little effect to ADVANTAGES OF overall margin BECOMING A CEX he best ideas are often • The range of stock can be MASTER FRANCHISEE the simplest and most greater than that of new • 25-plus years’ experience T profitable. Complete retailers, simply because we • 600-plus stores worldwide, with Entertainment eXchange have thousands of suppliers new stores opening weekly (CeX) takes the buy and sell concept • It gives access to products • Successful master already operating and updates it by trading in digital that may have been discontinued • Globally successful in 10 countries entertainment products. CeX shops buy, through normal retail channels • Huge market with a uniquely sell and exchange mobile phones, games, focused model and little competition electronics, computers, movies and TV The CeX mission statement is • Best-in-class online presence shows directly from the public. to be the world’s leading retailer • Ongoing franchise manager support What separates CeX from wider buy of second-hand consumer • Expert store location and sell retailers is our execution. We entertainment, electronics, selection support trade in a focused, yet complementary product range, backed by over 25 years’ experience. THE RIGHT CANDIDATE The CeX website provides customers 1 A track record in the management of medium to large national with live information, promoting our retail businesses stores by allowing them to see up to 2 A desire to grow the brand via multiple outlets and the financial the minute stock levels and prices, so means to do so they know the value of their items. 3 An existing business infrastructure that could support the development, or the experience and ability to create this THE CEX POTENTIAL To pinpoint why our market is so 4 A good local knowledge, relationships, and expertise in the areas of real estate, government, and labor regulations ripe for further growth, the reasons for purchasing goods second-hand 5 Extensive marketing, sales and recruitment experience, need to be made clear. Disrupting knowledge of our key product lines, and willingness to complete six months training in the U.K. or Europe the new goods market requires us to
92 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - XxxxxxxxxxxCeX GLOBALFRANCHISEMAGAZINE.COM 93 GLOBALFRANCHISEMAGAZINE.COM PRIOR TO PRIOR TO OPENING program training – Comprehensive Training design and interior store design – Store Full your location to specific layout selection –Site location selection Store support – Expert network Global procurement supplies on business and branded guidance ONGOING AFTER OPENING local operations Field supportYour – and provide manager will support you evaluation performance ongoing operational dedicated support – CeX’s Franchisee main as your will serve team franchise ongoing business and provide contact support and on-site – Regular Ongoing training team’s support your to e-learning courses development manual –Operations An online manual, support the to updated which is constantly business SUPPORT PACKAGE
By combining CeX’s systems systems combining CeX’s By base and to provide them with with them base and to provide In of service. outstanding levels dedication and your for return you will we work, provide hard support and advice with ongoing mutual success. to ensure TO SUCCESS TO TEAMWORK LEADS LEADS TEAMWORK local support our Through will we and online community, that to ensure together work business is successful by your and ideas sharing information business improving your to keep will we Together, and evolving. streams revenue open up new penetration market and increase and share. your with knowledge and industry and connections, local experience your to steer together work will we heights. business to great
Mexico since 2014) since Mexico bring to to a franchise looking for “I was an area manager and later as a store working Mexico that had real potential for growth. growth. for potential that had real Mexico while to franchising first introduced “I was When I chain. franchise manager in a fast-food franchisees (own 30 stores across across 30 stores (own franchisees I felt franchise, own my for researching started When I came across CeX, I knew that this that this I knew CeX, When I came across José Adame and Juan Casanova, master master and Juan Casanova, José Adame the U.K.) across 23 stores (owns market the franchisor’s consider it important to was the business with the potential I was I was the business with the potential was developer area Gabriel Moreno, experience and that they had a well-established had a well-established and that they experience ement network for for ement network venue stream of your own your of stream venue CeX brings an innovative franchise model directly involved with involved model directly franchise brings an innovative CeX an added bonus that It’s business grow. seeing my I most enjoy looking for. Like most of us, I have grown up in an environment up in an environment grown I have most of us, Like looking for. expanding into is technology today and technology, filled with than ever.” faster our lives model spending time analyzing the business “After I family, with members of the CeX and meeting me. for the business was that this convinced was the businesses in and time spent in The training me further insight and and Spain gave the U.K. of our the success to made all the difference and the structure, has provided business. CeX our goals. In the reach us to for support required in seen substantial growth have we years, last two our businesses and profitability.” risk and achieve to diminish the worthwhile This is definitely brand. investment. of your the success devices, electronic products; moving challenging and constantly the flexible Moreover, technology. films, games and entertainment involved. to get enough confident policy made me feel royalty in products try the opportunity out a host of technology to I have day.” of my the course ve near-universal appeal near-universal ve CASE STUDY TESTIMONIALS CASE STUDY With our support, training support, training With our redistribution systems redistribution business and branded supplies business and branded Dual re including operations, training,including operations, and marketing IT, EPOS and stock Bespoke Global procur stores and sub-franchise Full ongoing business support Full ongoing Pricing by experts on products that on products experts Pricing by ha
the opportunity to work in our in our work to the opportunity will give This stores. existing before “try to the opportunity you your will help us to judge It buy”. you and operating in owning suitability a CeX franchise. we and established systems, • BUY YOU BEFORE TRY As part of the joint decision- will making we provide process, • to build a customer you expect • • • BEHIND THE BRAND: PARTNER CONTENT
Change, and AT A GLANCE SUMMA FRANCHISE CONSULTING the importance Main HQ: Arizona, U.S.A. Contact: [email protected] summafranchise.com
of strategic s the world continues to manage the A COVID-19 coronavirus pandemic, it is clear that most franchisors and their planning franchisees are not going back to the way things were. We speak to a lot of franchisors that continue A guide to setting long-term goals for your business to talk about the “good old days” and returning to the way things were before they were faced with a new reality of business. WORDS BY Within our firm, we currently spend a great deal of time talking Robert Stidham, founder and CEO about the “next normal”. Perhaps of Summa Franchise Consulting and better expressed, we talk about founder of Franchise Dynamics the importance of re-imagining your franchise business: how does it remain relevant as we get through the event and what does your franchise company and franchisee’s business look like in the future? Change for people is stressful and difficult. Most of us don’t like dealing with the unknown; rather, we find comfort in routine. Perceived risk comes from what is new, rather than what is known. Generally, people find comfort in what is known rather than what is unknown, and people fear what is new. It is stressful. Simply put, people do not like uncertainty – especially in business. Within a company, change creates organizational stress for the franchisor and franchisee. Often, every part of your organization will have to do more work with much less resources. The perception of challenge and difficulty creates real operating issues for everyone. However, change is continuing and it’s inevitable. We spend a lot of time talking to franchisors who are trying to figure out what the next normal is for them and their organizations. Many of them face real frustration, trying to run their business every day while trying to look above their business at the marketplace and figure out where they need to be to ensure their long-term viability.
94 GLOBAL FRANCHISE | ISSUE 5.2 Behind the Brand - XxxxxxxxxxxSumma Franchise Consulting GLOBALFRANCHISEMAGAZINE.COM 95 GLOBALFRANCHISEMAGAZINE.COM “Strategic planning is a planning “Strategic management longer-term leaders that allows activity priorities, create set to resources, align focus, operations, strengthen everyone that and ensure towards is working common goals” Albert Einstein once said that Albert Einstein once said that expertise, marketplace information, information, marketplace expertise, case studies to create and share plan. confidence in the proposed assist in can also objectively They of the measurement the ongoing plan. performance is doing the same things “insanity again and expecting and over over has what Doing result”. a different successful organization your made a not ensure in the past may successful future.
Third, franchisors and and franchisors Third, of the matter The simple fact In some cases, the consultant Second, managers often have often have Second, managers of a company and the and the of a company organization. franchisee a different often have franchisees and on the problems perspective challenges – along with where needs to organization the entire for position itself in the future success. long-term is stakeholder is that every point of their from subjective in which that The way view. is to bring solved can get problem such in an outside resource, as a consulting firm, to assist organization your and coach of objectively a process through of the conducting an analysis business, using the stakeholders to (including franchisees) dialogue about a broad facilitate the business is and where both in the future. it is going where industry can bring franchise responsibilities in a company in a company responsibilities need to than the company’s continue to operate. their for agendas own their not may that organizations need well into the broader fit ategic ategic
y y monitor your your strategic plan strategic your your current business business current your your key stakeholders stakeholders key your orm a SWOT analysis analysis orm a SWOT “Change is“Change andcontinuing inevitable” it’s The other challenges that that challenges The other Execute Execute Consistentl performance against your outcomes and desired franchise experience, In our measure everything measure and as much data about your your and as much data about business as is possible current to the problems and appropriate trying to solve you’re Perf weaknesses, (strengths, opportunities, and threats) and test a str Formulate strategy resources, your plan, based on capabilities, human capital and outcomes desired Identify Gather Cost-cutting is not strategic Cost-cutting is not strategic
organizations face in trying in trying face organizations plan a strategic to develop First, areas. into several fall associate (or is the individual tend to People agenda. franchisee) and self-interest own act in their picture. struggle to see a bigger concerned more are Often, they may about the impact that change and roles individual on their have organizations need to involve need to involve organizations your as in this process franchisees will impact them directly. planning support in will need their You plan effectively. your executing written, plan needs to be Your constantly and measured shared, against organization your within Leadership goals. projected your should be communicating openly with all stakeholders, and honestly honest updates as to providing as the plan progress organizational is executed. • • • • • • planning. It’s a short-term a short-term planning. It’s a to solving tactical approach a generally, specific problem; expense. business needs to reduce is a longer- planning Strategic that activity term management to set priorities, leaders allows resources, align focus, create and ensure operations, strengthen towards working is that everyone simple six-step A common goals. planning could be for process follows: defined as GET YOUR FREE COPY TODAY
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5 minutes with... SHANNON WILBURN We speak with the co-founder and CEO of Just Between Friends, about the franchise’s deep connection with charitable organizations
Just Between Friends started as each sale is held. GF: What advice would you a pop-up consignment sale in Not a sale goes by that I don’t give to franchises that want to co-founder Shannon Wilburn’s hear back from a franchisee as launch charitable initiatives living room in 1997, and now runs they tell me how a single, teen across their network? multiple bi-yearly sales where mom came to the sale with only a SW: In short – do it! Find a way leftover items and cash few crumpled dollar bills but left to make it happen. A great way are donated to local charities; with an armload of clothes, toys to start is to bring together your totaling more than $28m to date. and baby gear – often subsidized key leadership team to help by a franchisee who gives on define and decide ways to impact GF: Do you believe that top of what those dollars could your community. Pull together a franchise networks have an have purchased. task force, ask lots of questions inherent responsibility to give and find out what matters to back to the communities they your people – what they care operate within? “If we want to be a vibrant about, what they want to be SW: Being a franchise system part of our communities, a part of locally. certainly gives us the opportunity It doesn’t have to be some big to do a great deal of good – giving back is just a thing, as sometimes we get hung the open door to make our up trying to think big. Instead, communities better by not just natural response” start small. Start where you are creating a consumer system but with what you have. Look around by giving back, pouring into our GF: What does the impact of the to see where there’s a need. communities where we operate. If brand’s donations mean to you When I was little, my dad we want to be a vibrant part of our as co-founder and CEO? taught me to give. If I earned $10, communities, giving back is just a SW: I could cry thinking about I got to have $2 to spend, $7 went natural response. how richly my life has been to savings, and the other dollar I blessed by hearing story after gave at my church. My dad knew GF: What kind of impact does story of how families’ lives that we often have to be taught Just Between Friends have on have been changed through to give in this way as it doesn’t a franchisee’s community? our franchisees. necessarily come naturally. I SW: Every sale now donates But here’s the thing: this learned that giving, no matter thousands of items to their local doesn’t just happen. It takes work how small, makes a difference to family-serving charity partner. to market this opportunity to those whom I give but also to me, For many of these charity the communities so they know in my life. partners, these twice-yearly they can be a part of this cycle donations are their largest source of blessing. To help us do even Shannon Wilburn was recently of items. We have seen how much more good, we’ve set a goal we call interviewed on the Global of a difference that has made to ‘Vision 2030’ – to generate more Franchise Podcast. Listen to it help countless families who live than $100m in donations by the at globalfranchisemagazine. right in the communities where year 2030. com/podcast
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