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Quiznos retrospective Global Can the QSR brand return after its fall from grace? Rely on resilience How franchisors can stand up Franchise to scrutiny globalfranchisemagazine.com Recruitment changes A new world requires a fresh MASTER, REGIONAL AND INTERNATIONAL FRANCHISING acquisition approach

MULTI-UNIT FRANCHISING REPORT SUMMA FRANCHISE Everything you need to know, just in time for Multi-Unit Month CONSULTING: The award-winning GLOBAL FRANCHISE consultancy that’s developing AWARDS 2021: franchises around the world WINNERS ANNOUNCED

PAGE MICHAEL PAGE NED PAGE EMILY 18 O’DRISCOLL 44 LEVITT 72 SADLER Concluding the triple The death of master Future-proofing your disruption discussion franchising? franchise agreement

CONTENts HIGHLIGHTS Global Franchise Multi-unit Play bigger: the Awards 2021 franchising benefits of the 12 winners 36 report 88 digital age announced A comprehensive How brands can Meet the outstanding brands look at all things multi-unit, attract and retain customers that won big at this year’s with exclusive interviews and by revamping bread and instalment industry trends butter assets

69 INXPRESS 49 HOW FRANCHISORS CAN FRANCHISE OPPORTUNITIES The leading team of global REMAIN RESILIENT shipping specialists Rochelle Clarke warns against failing to incorporate a holistic 30 SUMMA FRANCHISE development program CONSULTANTS 70 TRIB3 The rapidly growing boutique Developing franchise brands, worldwide fitness opportunity 52 TOP TRAITS OF LEADING MASTER FRANCHISEES 60 HELEN DORON Andrew Walters provides a cheat sheet EDUCATIONAL GROUP 75 FRANCHISE FAIR The first-ever virtual franchise event for franchisors seeking new partners Celebrating 35 years of excellence in Sweden 56 WHERE ARE THEY NOW: 62 EXPENSE REDUCTION ANALYSTS QUIZNOS In demand, and ahead of the curve 76 PAULANER Bringing Bavarian beer and cuisine to Can the sandwich icon recover after its fall from grace? 64 GRAVITY the world Making franchising a fun, sociable 72 FUTURE-PROOFING YOUR 78 30 MINUTE HIT experience FRANCHISE AGREEMENT The premier boutique boxing brand Emily Sadler emphasizes the need to built for women 68 SCHOOL OF ROCK keep your manuals up to date Helping aspiring musicians to master 87 TUTOR DOCTOR their skills 80 ACTING GLOBAL, Be a part of the education boom THINKING LOCAL Andy Knights lists five ways to support 90 FASTSIGNS franchisees on their own turf Beginning 2021 stronger than ever 94 RECRUIT FRANCHISEES IN 92 LITTLE CAESARS THE FACE OF DISRUPTION Third-largest pizza chain seeking franchisees Howard McCormick explains how a different world requires a fresh approach ADVICE, FEATURES, INSIGHT INTERVIEWS

10 OPENINGS AND EXPANSIONS 52 The latest goings-on in the world of 18 LEADING THROUGH A international franchising TRIPLE DISRUPTION Part two of Michael O’Driscoll’s panel discussion series 21 DETERRENTS TO INTERNATIONAL FRANCHISE 38 MULTI-UNIT MASTERY INVESTMENT Interviews with leading figures in the Sanjay Duggal makes the case world of multi-unit franchising for foresight 97 BRITT CANADY, NOVUS 25 SIX REASONS TO EMBARK ON FITNESS BRANDS OVERSEAS EXPANSION “Franchising is quite literally one of the Farrah Rose outlines the positives of most efficient ways to create successful international growth business owners”

4 GLOBAL FRANCHISE | ISSUE 6.1 UPFRONT enjamin Franklin B suggested that we should “be afraid of standing still”, which is a credo we live by at Global Franchise. 47 As an editorial entity, we have an insatiable desire to cover the entire Speaking of which, this issue we announce spectrum of international the wonderful winners of the Global Franchise franchising, from nascent brands, incoming Awards 2021. Coverage of the initiative starts regulations, en vogue sectors, ripe territories, from page 12. We were really surprised by the and much more. Our next endeavor focuses on amount of entries we received considering the multi-unit franchise model, which we’ve the last year was a heavily disrupted one for dedicated the entire month of May to as part of most franchise organizations, but despite this, our Multi-Unit Month campaign. This jam-packed companies were chomping at the bit to tell us content-heavy event comprises webinars (hosted about how they have not only survived during every Thursday), podcasts (a new multi-unit the pandemic, but thrived in most cases. themed episode drops every Friday), a whitepaper Read all about the brand stories throughout report, and more. Check it out for yourself this magazine, and make sure to head to and make sure to register to the webinars at globalfranchisemagazine.com/awards to globalfranchisemagazine.com/multi-unit-month. watch our virtual awards announcement video Which brings me back to my point on standing and hear from the brands themselves. still. Rather ironically, during a year of physical Here’s to another year of switching things inactivity due to travelling restrictions and up and pushing forward. national lockdowns, many of us have never been as frenetic when it comes to launching vibrant, To your success, new campaigns, services, products, technologies, and more. This was especially evident when we James Fell were recently judging the entries to the Global Editor, Global Franchise Franchise Awards 2021. The way brands pivoted [email protected] to support their franchise networks, implemented new software and systems, and demonstrated true @globalfranmag ingenuity and guile when creating new offerings Global Franchise due to unprecedented disruption was utterly awe- Global Global Franchise inspiring to read. Franchise Magazine

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Insight from industry- leading franchisors Richard Davies 44 (0)1323 471291 | [email protected] James Fell | [email protected] Franchising with Franchise mergers and globalfranchisemagazine.com acquisitions How to grow your network MASTER, REGIONAL AND INTERNATIONAL FRANCHISING fast and smart SCENTHOUND: SENIOR ACCOUNT MANAGERS DEPUTY EDITOR Meet the hottest pet franchise on the block Luke Elliott 44 (0)1323 471291 | [email protected] Kieran McLoone | [email protected] HOW TO FRANCHISE IN CHINA Matthew Gilley 44 (0)1323 471291 | [email protected] Millie Hall 44 (0)1323 471291 | [email protected] DESIGNERS Luke Rogers & Adam Barford Published by D.C. Thomson & Co. THE DIGITAL FUTURE OF 7 WAYS EMERGING FRANCHISING Rachael Wenham 44 (0) 1323 471291 | [email protected] CREDIT CONTROL Sue Carr 44 (0)1206 505903 Ltd, 185 Fleet St, Holborn, London FRANCHISORS CAN GO A cover-all report on 2021’s INTERNATIONAL biggest tech trends

PAGE RAY PAGE STEVEN PAGE EARSA EC4A 2HS. 15 HAYS 28 WOLFSON 80 JACKSON Brands riding the Why Israel should be on The Black Franchise silver tsunami every franchisor’s horizon Leadership Council PUBLISHER Matthew Tudor Printed in England

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SCALE UP Why you should franchise your business in 2021 PICK A FUTURE-PROOF What FRANCHISE The perfect profile of a long-term partner THE BRILLIANCE Franchise OF RESILIENCE £3.99 | VOLUME 16 ISSUE 7 what-franchise.com 6 ways to overcome adversity 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

POWERBRANDS PROVEN 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 CONCEPTS IN InHabit THE PET CARE The exciting new SECTOR 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 franchise that’s putting people into property 6-page special not be relied upon by users in making (or refraining from making) any specific investment, purchase, sale or other decisions. Appropriate independent advice should be obtained before making any such decision, such as from a qualified financial adviser. Any agreements, transactions or other arrangements made between you and any third party named on (or linked to from) Global Franchise Website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. It is not intended to be and should not be relied upon by users in making (or refraining from making) any specific investment, purchase, sale or other decisions. 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 Reasons to become 10 a franchisee 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 INDUSTRY KATHERINE 6 FEATURES OF AN 13 INSIDER 42 WATMOUGH 90 ETHICAL BRAND 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 We must engage More women should Key qualities of the Generation Z follow in my footsteps best opportunities 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

IN THIS ISSUE: Deterrants to international 21 Leading through a franchise triple disruption 18 development Part two of Michael O’Driscoll’s in-depth Making the case for franchisor discussion series foresight, and adopting a new approach to overseas growth

How to be 49 a resilient franchisor Why the franchise industry could learn from the strategies of banks and hospitals

Future-proofing your franchise agreement Emily Sadler outlines why now is the time to update your all- Where are they important manuals 56 now: Quiznos Can the QSR brand return with new ownership, after its public fall from grace? 72

6 GLOBALFRANCHISE | ISSUE 6.1 Franchising around the world

To truly understand how to succeed when franchising in any international market, it’s important to hear from experts within a variety of leading international regions. That’s why we’ve interviewed and featured so many diverse voices in this issue of Global Franchise magazine, and is why it’s the perfect tool to accompany your overseas expansion.

P.25 GLOBAL: THE GLOBAL Six reasons to head overseas “Brands that look to get ahead of the curve and take FRANCHISE action now could see immediate growth, especially PODCAST where their products and services provide solutions to COVID-19 challenges and there’s little competition in Jon Taffer is perhaps best known in the new markets” industry for his commitment to excellent - Farrah Rose, The Franchising Centre hospitality – whether he’s exploring the highs and lows in the popular Bar Rescue P.52 U.K.: TV series, or with the launch of his very Identifying master franchisees own restaurant franchise, Taffer’s Tavern. “If you thought franchise selection for your domestic Join us on the Global Franchise Podcast, network was important; it’s only amplified when where we spoke to Jon about this exciting picking a master” new brand. - Andrew Walters, Kindling Franchise Consultants To listen to this episode of the P.97 U.S.A.: Enjoy what you’re doing Global Franchise Podcast, as well as all of our upcoming conversations “Franchising is quite literally one of the most efficient ways to create successful business owners” with franchising professionals, make - Britt Canady, Novus Fitness Brands sure to visit globalfranchise magazine.com/podcast.

The rising popularity of multi-unit franchising

Multi-unit and multi-brand franchise operators are “There’ll always be a comprising an increasingly space for mom-and- large segment of all franchise owners, and as part of this pop locations, but month’s comprehensive sector you might find that report, we wanted to discover precisely why this is. the multi-units will From the reasons behind be in population multi-unit growth to why it may be the ‘future of centers, and franchising’, make sure to single-units will be in check out the full report P.46, BILL EDWARDS, CEO, on p.33. smaller markets” EDWARDS GLOBAL SERVICES

GLOBALFRANCHISEMAGAZINE.COM 7 I.T. AND SOCIAL MEDIA AMONG INDUSTRIES CAPITALIZING ON REMOTE WORKING

he pandemic has highlighted the ability and preference that some businesses and individuals have for remote T working. This has had a knock-on effect in franchisee leads, also, with an increasing number of entrepreneurs now gravitating toward home-operated franchise concepts. When examining new job listings, the trends are clear: home working is here to stay. In fact, 40.09 per cent of new job listings in the I.T. sector in the U.K. were remote, according to a study by legal experts Wright Hassall, followed by social media (32.32 per cent), and content creation (31.83 per cent). If we extrapolate these figures out, it’s clear that every role involved in the running of a franchise location, or on a franchisor’s team, doesn’t need to necessarily be located at a fixed headquarters. In fact, employees are reportedly favoring a more flexible approach to work. This is something that franchisors and their franchisees alike need to consider when trying to find top-tier talent.

European legal cannabis market to be worth €3.2bn by 2025

The sixth edition of The European Cannabis Report has been published by cannabis specialists Prohibition Partners, and it reveals just how sizable the legal cannabis market is becoming within this prime franchising continent. The cannabis market is projected to continue growing at a compound annual growth rate of 67.4 per cent, with predictions it could reach as high as €3.2bn by 2025. Currently, its valuation is set to reach €406m by the end of this year. “Europe is beginning to realize its potential as the world’s leading cannabis market,” said Stephen Murphy, co-founder and CEO of Prohibition Partners. “Since the first edition of The European Cannabis Report [was] published four years ago, enormous progress has been made for patient access and cannabis education. We are only at the very start of our journey of cannabis in Europe but there is irrefutable momentum towards becoming the world’s largest cannabis market – it is only a matter of time.”

Paid time off isn’t a guarantee in the comprised of 25 days of paid REVEALED: COUNTRIES U.S., with employers at no obligation annual leave, on top of 14 public to offer workers paid leave. But this holidays, which the Spanish WITH THE MOST PAID is a very different story elsewhere in government dictates. Other the world, and international living European countries follow closely TIME OFF experts International Citizens behind, with Austria (38 days), Group have conducted research to Finland (36 days), and Sweden identify how paid time off varies (36 days) all identified as around the world. attractive spots for relocation. In Spain, for example, workers Just behind the U.S. is Canada, have a total of 39 days’ which has 19 days of paid holiday; entitlement – including a total of nine public holidays. While PTO may not be at the forefront of international expansion, this kind of information is important for franchisors to consider when embarking on their next overseas venture.

8 GLOBALFRANCHISE | ISSUE 6.1 Join us for a celebration of all things multi-unit franchising Here’s what you can expect as part of Global Franchise’s first- ever Multi-Unit Month

What is Multi-Unit Month? Multi-Unit Month is a month- long celebration of the multi-unit franchising concept, featuring expert speakers, webinars, and other inspiring content to help Bespoke multi-unit franchising website you scale your portfolio. It takes place throughout May 2021, and To keep up with all of this upcoming content, make sure that each week, we’ll be bringing you you head over to globalfranchisemagazine.com/multi-unit-month webinars, podcast episodes, and a and bookmark the site, as we’ll be updating it throughout the downloadable whitepaper – as well month with the latest franchising content. This includes links to as a whole host of other exciting sign up to our specialist webinars, as well as detailed information and timely content. about the many experts involved with all upcoming media.

Webinars to prepare Unmissable podcast episodes you for success Throughout all of May, the Global Franchise Podcast is being taken over by Multi-Unit Month to bring you Each week, Global Franchise weekly episodes absolutely packed full of insider will be hosting a dedicated multi-unit information. We speak with multi-unit franchisees, webinar to bring you exclusive multi-brand franchisors, franchise lawyers, insight and guidance from experts international consultants, and a number of other experts in the field. ollowingF our opening to provide you with a complete multi-unit guidebook. Subscribe via keynote from Franworth director Spotify, Google Podcasts, or Apple Podcasts to stay up to date with David Barr, these will release every the newest releases. Thursday throughout May. The topics for these unmissable sessions are as follows: Dedicated multi-unit

Opening Keynote: Tuesday May 04, franchising whitepaper David Barr 14:00 - 14:30 BST Available to download from May 04, 2021, the Pinpointing Potential: Thursday May 06, identifying investable Multi-Unit Month whitepaper brings you expert concepts 15:00 - 16:00 BST insight and interviews from the top names in the Delegate or Die: building Thursday May 13, your workforce 15:00 - 16:00 BST world of multi-unit franchising. It features in-depth news, trends, and analysis, as well as investor tops Females in Franchising: Thursday May 20, experiences in the sector 15:00 - 16:00 BST on emerging concepts and promising sectors.

Project Takeover: Thursday May 27, Simply put: if you’re an entrepreneur looking to relaunching units 15:00 - 16:00 BST launch your own multi-unit portfolio, then you cannot afford to miss out.

@globalfranmag Global Franchise Global Franchise Magazine G globalfranchisemagazine.com GLOBALFRANCHISEMAGAZINE.COM 9 NEWS

Global franchising updates The latest highlights, expansions, and goings-on in the world of international franchising

s vaccines roll out and the end of the pandemic to take advantage of U.K. demand, franchising is at a fever pitch. waits on the horizon, faith in international business To keep up-to-date with all of the latest franchising news, development is reaching an all-time high. Whether head over to globalfranchisemagazine.com. A that’s more brands heading across the border from the U.S. into Canada, or American mainstays crossing the ocean

PIRTEK: Hydraulic hoses for Canadian consumers Global service provider for on- site hydraulic and industrial hose replacement and related product retailer, PIRTEK, will soon be entering its 24th global market as the franchisor makes plans for Canadian growth. The current plan is to target at least one new location in each province in Canada, building on PIRTEK’s current global portfolio of 430 units. “Our new Canadian franchisees will help build the PIRTEK brand in the country, and they’ll receive comprehensive training and support to ensure they’re great ambassadors for more country-wide franchisees to follow,” said Kim Gubera, PIRTEK USA’s CEO. “This is a great opportunity where the Taffer’s Tavern: sky’s the limit for wide-reaching territories and revenues.” Heading to the Sunshine State “I believe the Taffer’s Tavern brand Jon Taffer’s has tremendous power to grow, emerging especially at a time when consumers hospitality concept Taffer’s Tavern are eager to enjoy dining out again" currently has one location operational in Alpharetta, Georgia, but is already seeing Downtown Toronto scheduled a steady stream of prospective German Doner Kebab: franchisees who recognize the to open this May. Targeting 100 opportunity that such a strong brand “German Doner Kebab is a Canadian sites name can bring. As such, it has been truly disruptive brand that has Glasgow-based quickserve concept signing up new locations throughout revolutionized the kebab industry. German Doner Kebab is doubling- the states, including the latest agreement down on North American expansion, The landmark openings of our to bring 10 units to key regions throughout with 100 sites planned in Canada restaurants in Ottawa and Surrey Florida and Georgia. over the next 10 years. Its first two have met our expectations, “Signing on to Taffer’s Tavern was an easy Canadian sites opened in British demonstrating the demand for our decision for me, as Jon has an excellent Columbia in Ottawa and Surrey fast-casual offering that is bringing reputation,” said new franchisee, Nilesh Patel. last year, and the kebab franchise consumers a great product and “I believe the Taffer’s Tavern brand has tremendous has further plans to open three amazing value,” said Nigel Belton, power to grow, especially at a time when consumers more Canadian restaurants during managing director for are eager to enjoy dining out again, so we wanted to 2021 – including a flagship site in North America. commit early with a large territory.”

10 GLOBAL FRANCHISE | ISSUE 6.1 Popeyes: Preparing for U.K. launch Hyatt: Significant Indian growth Popeyes has announced plans to launch its first location in Hyatt Hotels Corporation has announced plans to the U.K. by the end of 2021, with more than 350 restaurants significantly expand its footprint in India, equating to an planned to open over the next decade. increase of 70 per cent – more than 50 locations – by 2023. “We are very pleased to launch Popeyes, a brand that has The organization has signed over 20 managed and brought moments of celebration to guests globally, something franchised agreements for the country, adding more than we believe is important more now than ever,” said Elias Diaz 3,600 keys to its existing Indian portfolio of 32 Hyatt- Sese, co-founder of Popeyes UK. “It allows us to contribute in branded hotels across eight unique Hyatt brands in the hardship moments for the country by creating hundreds of country, including Andaz, Alila, and Park Hyatt. career opportunities. We truly aspire to become an employer “India remains a growth driver for Hyatt, and we are of reference for big-hearted talent through care, service, and committed to catering to the Indian traveler with a supporting the neighborhoods in which we operate.” comprehensive portfolio of hotels,” said Sunjae Sharma, This news came alongside the announcement that Hyatt’s vice president and country head, India. “Despite the Popeyes had signed a multi-country agreement, to also challenges the industry faced last year, Hyatt signed eight open its first sites in India, Bangladesh, Nepal, and Bhutan in new hotels across various brands that will cater to the needs the coming years. of both leisure and business travelers.”

StretchLab: Developing Down Under StretchLab, one of nine brands under the Xponential Fitness banner, has recently signed a master franchise agreement to expand with at least 50 units in Australia. This was signed with entrepreneurial family Matt, Bill, and Candice Gordin, owners of Stretch X Operations Pty Ltd. The trio also own the master rights to CycleBar – another of Xponential’s boutique brands. “Xponential Fitness is excited to collaborate with the Gordins once again to bring another Xponential Fitness brand to Australia,” said John Kersh, chief international development officer. “The Gordins have exceeded expectations with CycleBar, and I’m confident they will continue that trend with StretchLab, which will be a great complement to the diverse fitness Sotheby’s scene in Australia.” International Realty: Opening in Oman Sotheby’s International Realty currently operates nearly 1,000 offices IWG: Serving Australasia’s across 75 countries and territories, remote working needs and thanks to its latest signing, will IWG, the workspace and coworking now open its first location in Oman in franchisor with more than 3,400 collaboration with local entrepreneur Faisal locations worldwide, has announced Al Shanfari and the Alfardan Group. plans to aggressively target Its inaugural domestic site is headquartered in growth in the Australian Muscat, and will serve its surrounding areas. and New Zealand markets. “The market in Oman is improving and moving Specifically, Tasmania, New faster than ever. Our mission is to deliver the highest South Wales, Queensland, quality of service to our clients,” said Faisal Al Shanfari. Christchurch, Wellington, and “Aligning our company with Sotheby’s International Auckland have been identified as areas of opportunity. Realty not only builds on that commitment, but it “There is a clear gap in the market for a high-quality also provides our agents with a global resource for product and our goal is to partner with IWG, the global marketing extraordinary properties in prime locations leader, with a strong brand, professional infrastructure, and key areas in Oman, and the brand’s vast network and worldwide network to fulfill this need,” said Adam enables us to serve our Omani clients seeking luxury Adams, CEO of The Adams Group, IWG’s first Australian and resort properties around the world.” franchisees that signed up in 2020.

GLOBALFRANCHISEMAGAZINE.COM 11 GLOBAL FRANCHISE AWARDS 2021

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PIP WILKINS ROBERT ANDREW MARY ALDRED CEO, British Franchise CRESANTI BRATTESANI CEO, Franchise Council Association President & CEO, Head of Franchising, of Australia International Franchise HSBC UK Association

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A client-driven enterprise recognized by Financial Times Summa Franchise Consulting, LLC as among the most forward-thinking law firms in the is a full-service franchise consulting company, industry, Akerman helps clients achieve their most providing an array of services, from franchise important business objectives throughout the Americas concept formation to consulting services. and around the world. Operating from 25 offices, our Summa Franchise Consulting provides services to more than 700 lawyers and business professionals franchisors of all sizes around the world. Through collaborate with the world’s most successful enterprises its affiliates, Summa Franchise Consulting also and entrepreneurs to navigate change, seize owns Franchise Dynamics, a full-service, “Inc. opportunities, and help drive innovation and growth. Magazine 500|5000”, award-winning franchise Our franchise and licensing practice provides strategic sales outsourcing (FSO) firm. Franchise Dynamics guidance to franchisors, licensors, and subfranchisors is responsible for building a significant number regarding a range of legal and strategic business needs of successful franchise brands in virtually every impacting their distribution models. Our experience segment of franchising, worldwide. Their goal extends to restaurant and retail development, health is to partner with clients that they can develop care and senior care, home-based and mobile franchise throughout the entire business life cycle, from systems, franchise sales compliance, franchise formation to growth to long term success or relationship management, compliance with state investor exit, based on their client’s objectives. and federal laws, mergers and acquisitions, corporate Additionally, Summa Franchise Consulting structuring and counseling, formation and management provides strategic and operational support of intellectual property, international franchising, services to franchise companies in commercial counseling regarding bankruptcy and reorganization, distress through its Franchise Reorg affiliate. and dispute resolution. akerman.com summafranchise.com

16 GLOBAL FRANCHISE | ISSUE 6.1

INSIGHT

Leading through triple disruption: insights from two franchise leaders WHO’S WHO? INTERVIEWEE: Rob Dallimore, Part two of a two-part special, Michael O’Driscoll chairs MD of Worldwide an in-depth and honest discussion with two print brand INTERVIEWEE: Richard Thame, CEO of Snap Print franchisors who are not only leading organizations & Design during a global pandemic, but have been operating in a INTERVIEWER: Michael sector battling decade-long disruption O’Driscoll, CFE

WORDS BY MICHAEL O’DRISCOLL, CFE

andemic franchisees clean up databases and close unit. Richard says: “We closed using the new marketing automation less units in 2020 than we did in 2019. disruption We will consolidate the network still, How did the pandemic software, begin running targeted P campaigns,” says Rob. “Once we but that is different to permanent hit the print sector? closure.” Both men admit that without Richard Thame summed it up in started doing this, we felt more in the various government support one word: “hard!” Richard says it control of our destiny again and packages available in Australia, they was almost instantaneous as there could relax a little about how the THE AUTHOR would have been forced to close more was so much uncertainty about who future could be managed.” Rob said Michael O’Driscoll, having the right monitoring systems units. They believe that the longevity could open and not open. “We’re a CFE has been in the in a place to identify vulnerable of their franchisees meant they were business-to-business franchise, so all franchising sector franchisees quickly and assisting probably better financially for 30 years. He has the businesses we have as customers them was essential. Snap also tackled resourced than many other been a CEO, COO suddenly were not trading or were the problem in a similar way. “The franchisees outside of and board director trading with significantly reduced first three months was hectic for of several franchise revenue. This had a huge impact systems. He is our support team and franchisees on our Snap CBD franchisees in former director of the as we tried to come to grips with particular with some seeing revenue Franchise Council of what was going on. Once we were drops of 70 to 90 per cent.” Australia and holds an deemed an essential service, we Rob Dallimore agreed and was MBA in International could move forward with our Franchise Strategy genuinely concerned about how he planning. We also discovered that was, as a franchisor, going to have when things settled into sufficient resources to financially the ‘new normal’ we support the franchisees. “The seem to be working governments of Australia hadn’t yet on less tasks, but worked out what economic support more important would be provided,” he explains. “I tasks that could have never been more stressed in my make a real 25 years at Worldwide as I was trying difference to our to forecast what kind of financial business. It’s still resources we needed to get through. hard, but we can see We didn’t even know what ‘through’ the way through now and looked like.” Rob said they had to learn must keep franchisees focussed to be prepared to expect each day on the upside of continuing to to dish up uncertainty. Conversely, embrace the change we are Rob was pleased to see that online trying to facilitate.” orders went up during the peak of the I asked both Rob and pandemic shutdowns, particularly Richard if they had to for those franchisees who had permanently close units embraced the new digital tools they during the pandemic. Rob had introduced to the business in the says he was fortunate that prior years. they only had to consolidate “We took the opportunity to help one unit into a geographically

18 GLOBAL FRANCHISE | ISSUE 6.1 the print sector to ride out a severe now for franchisors,” states Richard find new ways of leading the business economic downturn. “We need to make sure we keep a through this complacency.” The rest of 2021 will see wholesale focus on forecasting and keeping our Richard believes his greatest challenges government support cease and more franchisees informed.” as a leader have been managing uncertainty targeted programs come into place. across three countries of operation and They expect top line growth to still be Personal leadership trying to hit the right notes to help keep very challenged as they have exposure lessons motivation levels up. “This has been a very to industry sectors such as tourism, I asked both franchisors what has hospitality and education which they been the hardest issue or challenge expect to remain severely affected for they have had to manage pre- and “Once we were deemed sometime. They believe post- the economic downturn as a as those sectors come back online franchise leader. Rob was quick to an essential service, we there will be lift in demand for respond: “I am far less patient and printing as businesses refresh tolerant, driven by frustration and could move forward their marketing materials. the fact we genuinely care for our Richard and Rob believe many franchisees and their businesses, with our planning” independent print operators that that they won’t change and adapt were marginal businesses prior to to the new digital era so they can formulaic business model,” he explains. “You the pandemic will fold as government have a sustainable business. I have know, follow these rules and procedures support ceases at the end of March been transparent with franchisees and you’ll be fine. Don’t deviate. That 2021. They believe this will affect about the need to be innovative. I doesn’t work now. I am trying to influence the whole print supply chain which worry that some of our franchisees our support team and franchisees to be will continue the print industry’s aren’t keeping up and what the nimble and accept change more readily as disruption. They want to see poor, consequences of that will be to the norm. Innovation is our friend.” entrenched practices thrown out them and to the franchisor. I asked if they have had to change and a refreshed way of managing the Complacency amongst franchisees their leadership style during this triple print sector embraced by the sector. is our greatest enemy. We need to disruption marathon. Richard didn’t “The pace of change is a real believe there is a templated version of challenge right franchisor leadership.

GLOBALFRANCHISEMAGAZINE.COM 19 INSIGHT

“It is more nuanced than that in risks to make the business more months and find this incredibly franchisor leadership. "You need sustainable. If we don’t take valuable to helping maintain their to learn to adapt, for sure, but it's some risk and change the way we leadership focus and impact. As Rob not all the same for every CEO or do things, we simply won’t be a says: “Don’t be too proud to seek founder in every franchise system.” competitive business model help. It’s curious to me that the Rob believes he has had to adapt but over the next five years.” people who need the most help it hasn’t necessarily changed the are the ones that don’t seek it.” business as much as he hoped for. The future view and Both believe that the franchise “I am worried that the franchisees personal advice sector in 10 years will look vastly aren’t taking enough considered Change management will remain different to what it is today and to a core challenge; both men believe what they ‘grew up’ with. There will they and their teams need to get clearly be more technology “We need to make sure better at leading lasting change. involved. More regulation for As Richard said: “We need to franchisors to contend with and we keep a focus on be more informed and keep our possibly less new franchise systems franchisees informed and be more entering the market as the cost of forecasting and keeping convincing in our ability to influence capital is cheap right now and franchisees and our teams. We also will be for some time. Richard our franchisees informed” have to accept some people won’t be believes: “Sources of capital have able or willing to move with us. This diversified, too. Some businesses will need to be managed carefully.” simply won’t need to franchise their What is their advice for young business to scale. Simple methods of founders or CEOs on managing distributing goods and services, like disruption? Richard stated licensing, may continue to grow if it was “important to be clear young entrepreneurs do not wish about the fundamentals of to use the more structured model your business that you can’t or of franchising.” won’t change and be clear about There will be more knowledge what you can and would be about how to set-up and build a willing to change. Know the successful franchise system. Rob DNA of your franchise speculated: “We may very well system very well and see less crises and failures in communicate it franchising as people become more clearly to your core knowledgeable about the suitability stakeholders”. Rob of a business to be franchised and believes: “Be open self-assess this. They will also minded and be acquire the management skill of willing to constantly being able to influence people to do adapt. Your IP is the something they don’t want to do as core of the business, the franchise model matures. A good but you must be willing franchisor of the future will have to keep investing in it. change management as their core Don’t be afraid to take skill set in my opinion.” up all ideas. Assess Richard observed: “Through all them all and take this chaos of the last 12 months, the calculated risks. I three operating countries of Snap try to give my team have been brought closer together. freedom to try new This can only be a good thing and things. I’d rather they will hopefully make us a stronger kept coming up with franchise business in the future.” new ways of doing Let’s hope this is the case for both business and looking of these mature models and they at all opportunities to can be an example for others about continue to diversify our offering to how to get through long periods have a sustainable business model of disruption and come out the then just accepting the status quo. other end a better business with a Be the disruptor, not the disrupted.” sustainable future. Both men believe it is important Disclosure: The author is an advisor to one of to seek advice. Both formal, these franchise-related businesses. informal and at a personal level. Talk to your peers and those with more experience. Also find ways to invest in appropriate professional READ PART ONE AT advice when you get stuck. Both GLOBALFRANCHISE Richard and Rob have consulted MAGAZINE.COM extensively during the last 12

20 GLOBAL FRANCHISE | ISSUE 6.1 INSIGHT

Compelling deterrents to international franchise investment Sanjay Duggal makes the case for international franchisors to adopt foresight that rejects flawed convention, spawns a fresh approach, and jives with the new normal

WORDS BY SANJAY DUGGAL

n the rarefied space at tends to get buried deep under Franchising as a sprawling industry the top of the franchise seemingly more important details of diverse businesses and their I food chain, a mere – either by franchisor design, derivatives, and franchising as “opening soon” sign investor oversight or both. an instrument of business, have can turbo-charge leasing in the become virtually synonymous. But entire vicinity – almost anywhere Revisit the they aren’t. Otherwise, a number of in the world. franchisor norms wouldn’t need THE AUTHOR fundamentals of All the stars in the franchising to be remedied with urgency. Sanjay Duggal is franchising galaxy don’t shine as bright, 1 the CEO of U.A.E.- The practices of a) The business methodology: As a though. In an industry worth based Stellar system that facilitates the transfer limiting financial almost $3trn a year, just a handful Eastern Franchising, of entire learning curves from one transparency, which provides in- of brands wield true global place to the other, franchising depth advisory power. Those that don’t, are an has created more livelihood on how to navigate overwhelming majority. opportunities in the past hundred the Middle East Business 101 says that a years than any other form of franchise industry franchise transaction involves one business. Also, in a world where individual vocations were mostly determined by birth, background “It might be 2021, but or education, franchising has singularly brought down the tail still shouldn’t entry barriers to every aspect of business. wag the dog” b) The industry:

party paying fees and royalties to the other in return for a proven system, license, and ongoing support. The brand’s equity (or value) in the target market is pivotal to the relationship’s success, but isn’t quantified or even referred to in the franchise contract. This glaring irony

GLOBALFRANCHISEMAGAZINE.COM 21 INSIGHT

virtually unknown on the West Coast and vice- versa. Recognition tends to diminish that much more when international borders are crossed and barriers of language and culture are added to the mix. c) It doesn’t necessarily correlate with size and revenue: In developing ridding itself a fee structure, franchisors heading of subtle but to new markets tend to compare entrenched deceit. themselves with brands of similar backgrounds and sizes. But a Reexamine the commitment to the new territory 2 role of brand in terms of local infrastructure equity in a franchise investment is a decidedly more transaction accurate indicator of eventual A key driver of franchise brand value than plain size. inadequate investments is the opportunity d) It should result in a sustainable franchisor to partake in brand equity that price premium and increased accountability, facilitates enhanced performance demand over the competition: myopic fee and differentiates the business Ultimately these are the only two structures and from rivals. Perception, loyalty, things that matter. But they are misrepresentation of brand awareness, association and also the most difficult things to ascertain ahead of time, in the value to name a few, have image are all different facets of absence of reliable information. entered the industry mainstream. brand equity. To many, they represent the word It is also important that the e) In markets without pre-existing “franchise” by default and dare one following attributes of brand equity brand recognition, the franchisee say, have even sullied its name. be acknowledged by both sides: actually pays the franchisor to boost It might be 2021, but the tail still brand equity: In spite of that, brand shouldn’t wag the dog. a) It’s difficult to measure: Barring equity universally remains an asset a few select brands, there’s very retained only by the franchisor. Five and 10-year franchise contracts without a guarantee of “Most businesses have been renewal make sure of that. Conclusion: The steep costs strained by demographic, typically involved in acquiring and operating an international technological, behavioral, and franchise can no longer be justified without demonstrable brand equity economic shifts playing havoc in the target market. Taking a chance on a domestic with them in unison. And that franchise or developing an independent brand whose value was before the pandemic” can steadily appreciate is a decidedly better option today. little empirical evidence to back And that’s precisely what trends Conclusion: When viewed up claims made about brand demonstrate. purely as a means to an end, equity, especially in the context of franchising remains the business overseas territories. Redevise the world’s equivalent of inventing approach to the wheel. For entrepreneurs and b) It doesn’t always travel well: 3international consumers alike, it is a gift that Even within the U.S., the home franchising keeps giving. But as an industry of franchising, there are many a) Commit to co-creation: There with global reach, it needs serious examples of brands with a major are numerous examples of unique recalibration. This includes East Coast presence that are international brands of modest

22 GLOBAL FRANCHISE | ISSUE 6.1 size that caught the keen eye of traveling investors. The result was “The long-held belief that a massive brand expansion, global popularity, and a genuine win-win franchisor should have operated for both parties. More franchisors can make this happen by bringing multiple company-owned units for an open mind to the table. Parting with equity and spinning off several years before franchising overseas operations are just two manifestations of that open mind. needn’t hold water in current b) Consider alternatives to traditional franchise agreements: market conditions” The essential legal elements of a franchise are a trademark, fees and must be replaced by a dynamic opportunity for viable franchise ongoing support. But options like document and adaptive mindset. relationships. Either way, it’s license agreements without the here to stay, especially in the Conclusion: The rising problems obligation of continued support are Middle East. in international franchise feasible in certain industries. Going forward, franchise relationships emanate from Selling branded products but not thinking will need to extricate itself claims and expectations that are operating under the banner of the from the industry that perpetuated misaligned with economic reality. franchisor is an option in others. it. That means adopting foresight In being candid about the value One needn’t fixate on what it’s that rejects flawed convention, they do and more importantly, called but focus on what it does. spawns a fresh approach and jives don’t represent, franchisors with the new normal. c) Rethink the notion of won’t feel the need to overstate franchisability: The long-held belief their capacity. Moreover, in an that a franchisor should have environment where financial operated multiple company-owned odds continue to stack up against units for several years before importing a franchise, hustling like franchising needn’t hold water in before only guarantees a lose-lose current market conditions. If the outcome. efficiency of a no-frills business model is of sole importance to an There’ll be no going investor and can be translated to back to business an agreement, there is no valid as usual reason why a single-unit owner Franchisors with international cannot franchise. ambitions may view the d) Keep the franchise equation front “new normal” as just an and centre: Franchise proposition overused expression = Operating System + Brand born of a pandemic, Equity. Without measurable or a recalibration brand equity, a franchise is an incomplete investment proposition, especially in a foreign territory. What’s more, in introducing a new brand to a market, the financial stakes are typically much higher for the franchisee than the franchisor. The one-size- fits-all agreements that franchisors are generally shy to deviate from

GLOBALFRANCHISEMAGAZINE.COM 23

INSIGHT

Why now is the time to take your franchise international Six compelling reasons to take your brand overseas, from affordable real estate to advanced technologies

WORDS BY FARRAH ROSE

or many brands, Businesses need to themselves against the risk of international spread their risk weakening domestic markets F expansion has been COVID-19 has made managing and significantly expanding their put on hold over the 1 overall growth potential. a business increasingly difficult, so past 12 months. spreading the risk in this However, now is the ever-changing economic Franchising is more time for businesses to THE AUTHOR landscape has become attractive than ever weigh up the benefits of vital to increasing the to prospects Farrah Rose has 2 entering markets over three decades chances of success. For 2020 was very much a year for job of international where COVID-19 is under many, international losses. In fact, the most recent franchise consultancy better control. Brands franchising could be ONS statistics show that there are experience, winning that look to get ahead of the answer. currently 1.72 million unemployed the Contribution the curve and take Businesses are suffering people in the U.K. alone, up 418,000 to International action now could see the backlash of COVID-19 on the same period the previous Franchising award at and businesses in the U.K. and year. With other countries across The Global Franchise immediate growth, Awards, hosted at the especially where their Europe have also been dealing the globe following this trend of IFA Convention 2020 products and services with the added fallout from unemployment, an increasing in Florida. She drives provide solutions Brexit. They face challenges number of people are looking to the international to COVID-19 such as a rising cost of goods, start their own business or expansion of The challenges and an exodus of European workers considering ways to generate a Franchising Centre there’s little causing staffing costs to rise, stable income. through her 73 and reduced disposable income However, because new business international franchise competition in for consumers. Because start-ups have a far higher associates covering new markets. So, of this, there’s little failure rate than investing in a 123 countries here are my top six surprise that many franchise, there’s no surprise that reasons why now is the businesses don’t want people are more eager than ever perfect time for your to rely on putting to commit to a proven business franchise to expand all their eggs model. Franchising’s flexibility and overseas. in one basket. potential for a steady income is an Franchising in incredibly attractive proposition international markets for prospective franchisees who can reduce these are eager to invest their businesses’ dependence on redundancy pay and take back the potentially unstable control of their lives. market they’re already Companies that franchise in established in. new countries now will expose Through international themselves to a huge, and expansion, businesses expanding, market of potential spread their risk in franchisees with an excellent work a number of ways. By ethic and good business acumen. exposing them to new On the flip side, franchises looking markets, it increases the to expand internationally will be franchise’s customer base an attractive proposition for these and brand awareness. potential franchisees searching for Businesses can also benefit businesses who have proven they from favourable regulations can step up to the mark and power in other countries, protecting on through when times get tough.

GLOBALFRANCHISEMAGAZINE.COM 25 INSIGHT

do that initial market research for that franchisors had not fully Technology helps you. For instance, The Franchising exploited before. By providing franchises cross Centre has franchise associates in more accessible online services, borders 123 countries who can advise you franchises expanding internationally 3 on locations best suited to your have the potential to grow a larger Before the pandemic, businesses were lucky to have face-to-face business. So, by taking advantage global customer base, which can be contact with their international of the technology available, the harnessed by localfranchisees. franchisees five or six times a year. options for you to research new When setting up a franchise in any Now, thanks to technology and with markets are wide open. new country, franchisors map the working remotely being so well places where there is a accepted, the ability to start up, Franchise brands large potential demand for their communicate with, and manage new have shown their services so that franchisees have franchisees has been made easier 4adaptability the capacity to build a profitable than ever before. Many franchises have adapted over business, which ultimately means When running a franchise, there the past 12 months by providing that certain areas with less demand are always two things you wish you services and products online. Using may not have a territory allocated. had more of: time and money. The almost 100 per cent online service With more online provision, forced adoption of technology like provision and product retailing is franchisees can gain customers in Zoom into everyday life over the a new route to market for many those areas that may have last 12 months allows you more of franchise brands, something previously lost out. both by giving you the option to talk with franchise professionals and potential franchisees at the click of a button, saving you thousands of pounds in travelling costs. Webchat services also allow franchisors to provide a more superior and streamlined support service to their franchisees in other countries. A franchisor can now deliver training online and converse with franchisees face-to-face on a more regular, albeit virtual, basis. It’s true that you need substantial in-country research and data before you commit to taking your franchise brand into a new market. I’ve regularly travelled all over the world to conduct this type of research for clients. Whilst I may not be able to make it out to other countries for on-the-ground research, technology allows me to communicate with experienced franchise professionals in-country who are available to

“Brands that look to get ahead of the curve and take action now could see immediate growth, especially where their products and services provide solutions to COVID-19 challenges and there’s little competition in new markets”

26 GLOBAL FRANCHISE | ISSUE 6.1 Considering an in-country specialist can be countries where worth their weight in gold. They “By providing COVID-19 is can tell you what cultural aspects 5 may benefit or hinder the growth more accessible under control of your brand in that new market The decision on which countries or whether the population density to move into when you expand online services, will leave you a limited opportunity internationally is not always for territory sales versus the cost of simple. Franchisors often favour franchises expanding market entry. those countries where they speak the same language as internationally their home location. So, a franchise Real estate has in the U.K. may initially focus on the opened up have the potential to U.S.A., Australia and Canada. But 6Due to the shakeup of commercial property in the majority in recent times, entering a market grow a larger global where COVID-19 restrictions are of countries, resulting from a minimal is a serious consideration. COVID-19-led recession, there’s customer base, which Countries such as China, New a glut of real estate available for Zealand and Australia, where the unit-based franchises. So, now is can be harnessed by pandemic is largely under control, have certainly become a hot topic of local franchisees” conversation for those franchisors preparing to expand. This is when the time to take advantage of the real estate opportunities in other countries where the pandemic has caused property to open up and prices to drop. Finding affordable locations for franchisees to launch can often be the first stumbling block when entering new markets. Now is the time to take advantage of your buying power as a franchise brand. For brands that use sterling or dollars, you may find a strengthened position to buy or negotiate the leasing of real estate in countries where the currency has weakened significantly since the pandemic began. As markets begin to open back up, it’s clear that international travel will take a little more time to resume. For franchisors who take this time as an opportunity to forge ahead rather than putting expansion on the back burner, you’ll find that fortune favours the brave.

GLOBALFRANCHISEMAGAZINE.COM 27 THE GLOBAL MENTORSHIP AWARD

BEHIND THE BRAND: PARTNER CONTENT

Developing AT A GLANCE SUMMA FRANCHISE CONSULTING

franchises Main HQ: Arizona, U.S.A. Contact: [email protected] around the summafranchise.com allows us to provide ‘best in class’ recommendations to our clients. Summa Franchise Consulting’s main operating principle is to world provide customized and complete solutions for its clients. This scope of services covers the client’s potential entire range of needs, Summa Franchise Consulting is providing unbeatable from forming new concepts and solving company-wide problems, guidance to countless franchising professionals to helping clients of all sizes create THE AUTHOR umma Franchise more than 30 years. He has been profitable franchise system growth, Robert Stidham is Consulting is an award- personally involved with over 2,000 high franchisee and customer the CEO of Summa winning franchise franchised business start-ups, satisfaction, and team success. Franchise Consulting, S consulting company multi-unit, and area development Moreover, Summa Franchise founder of Franchise agreements in 47 countries. Consulting provides a “franchisor Dynamics, and based in Arizona. Robert Stidham is the founder and CEO of Summa In his corporate career and life cycle consulting partnership” principal of Arizona to create, grow, and help its clients Home Health, a major Franchise Consulting (“Summa” is through our companies, Stidham and their stakeholders prosper. The stockholder in a the Latin word for “total”), which has a tremendous global track healthcare franchisor. advises franchising companies in record of driving franchise unit result has been an enviable client list He is the recipient of all industries at every step along sales, franchise system revenue, made up of many happy contacts. the 2021 International the process. Global Franchise and franchisor profitability for The goal of the company is to Contribution to previously named Summa Franchise clients, while also helping them assist a prospective franchisor Franchising award at Consulting as a 2020 “Highly gain market share and expand to go from formation to creating the Global Franchise brand awareness; whether for new the infrastructure to support Awards Commended” consulting firm in the Global Consulting category. franchise concepts, or already- growth, to managing the client A few examples of Summa established brands, worldwide. company’s franchise sales on an Franchise Consulting’s many He has held a variety of positions outsourced basis. expertise areas include the in the franchise industry in “We enjoy working with all of our following: franchise business franchise company leadership, franchise clients,” Stidham said. formation services, franchise development, operations, “We are active in the franchising marketing and branding, operations consulting, and as a U.S. publicly community, and our professionals and management consulting, and traded franchise company have real and significant direct franchise sales and development. president. He continues to be active experience working in a variety of in the International Franchise franchise businesses.” The secret Association (IFA), serving as an to the success of Summa’s clients International Committee member. has been in part from its success in “Summa Franchise attracting best of class talent, and Consulting’s main operating SUPERIOR CLIENT in the leadership team it has put SERVICE into place in support of its client’s principle is to provide Mr. Stidham uses his extensive franchise business. experience to advise clients. For customized and complete example, during his career, he FIRST-HAND built two of the 25 largest service FRANCHISING solutions for its clients” franchise companies in the industry EXPERIENCE at the time he was with them, Summa Franchise Consulting’s worked in and with private equity, senior team members have A WEALTH OF and has been president of a U.S. considerable first-hand experience KNOWLEDGE publicly traded, international in franchising. In addition, our Robert Stidham has been an franchise company. Leveraging executive leadership team of accomplished and proven franchise that experience and our collective Thomas M. Rocca, who serves as industry leader and executive for experience and our resources the chief experience officer (CXO)

30 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - XxxxxxxxxxxSumma Franchise Consulting GLOBALFRANCHISEMAGAZINE.COM 31 GLOBALFRANCHISEMAGAZINE.COM Aaron McMartin, Chrissy Eblin, Robert Stidham, Thomas M. Rocca Thomas M. Rocca Stidham, McMartin, Chrissy Eblin, Robert Aaron variety of franchise businesses” variety and our professionals have real and real have professionals and our significant direct experience working in a working experience direct significant “We are active in the franchising community, the franchising community, in active are “We BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Summa Franchise Consulting

which Robert Stidham also founded. “Summa Franchise Consulting Franchise Dynamics helped create the franchise sales outsourcing provides a ‘franchisor life cycle (FSO) services category and is an Inc. 500|5000 award-winning company. consulting partnership’ to create, It is the FSO development services leader worldwide. grow, and help its clients and their Companies that retain Franchise Dynamics can focus on operations stakeholders prosper” and growth, with Summa Franchise Consulting’s advice and guidance, while Franchise and executive vice president, marketing plans, marketing Dynamics handles franchise sales Chrissy Eblin serving as the vice presentations, market research services and the accompanying president of marketing, and Aaron reports, and sales/marketing paperwork headaches. McMartin who is the vice president reporting tools. She also has Franchise Dynamics provides of development make a meaningful created, edited, and translated clients with start-to-finish franchise contribution to our client’s business corporate franchise operations and development. Each client’s Franchise and to our own. training manuals. Dynamics team looks, feels, and Tom Rocca has over 30 years Prior to joining Summa Franchise operates like a member of the of experience in consumer and Consulting, Chrissy served as chief franchisors’ internal organization, business marketing, customer marketing officer and then chief such as working with marketing and experience, and franchising. He operating officer of one of America’s operations executives and their staff also is the founder and president first frozen yogurt companies, to coordinate activities. of KPI Group. where she was responsible for Franchise Dynamics’ fulfillment Tom helps Summa Franchise business efficiencies and processes, model is shared risk-oriented and, Consultants’ clients keep their meeting target goals, establishing unlike some other FSO companies, omnichannel customer experience corporate culture and vision, it never takes a portion of royalties seamless and consistent, thus franchisor/franchisee operations, from clients. maximizing customer return and planning, developing, and and loyalty. His experience with executing all corporate marketing Business Process Outsourcing and advertising initiatives. (BPO) is particularly helpful to Aaron McMartin has more smaller or start-up organizations. than 15 years of experience in the Tom focuses on enterprise-level United States and international customer strategies while also franchising industry and has overseeing tactical execution. He experience working in more than regularly helps clients develop 60 countries. He helps Summa acquisition programs and optimize Franchise Consultants’ franchise key customer segments. industry clients expand and He has extensive experience plays a key role in designing and with restaurant brands and is implementing appropriate growth a Preventive Controls Qualified strategies for them. Individual (PCQI), and is trained He also helps companies develop on the preparation of a Food Safety their franchise support systems and Plan for clients following FDA is well-known as an effective coach standards and recall & risk support for franchisees in sales, launch best practices. strategies, and lead generation. Chrissy Eblin has more than Prior to joining Summa a decade of direct experience Franchise Consulting, Aaron in the franchising industry. She worked with franchise concepts creates, implements, manages, and in several industries, including coordinates franchise marketing the health and beauty space, food plans and operations for Summa and beverage, early childhood Franchise Consultants’ clients. education, executive training, She also oversees and advises and professional services. clients on online, social media, As a group, the company video, and print marketing. has worked with over 50 Chrissy has extensive experience per cent of the franchise in domestic and international companies listed in the franchise marketing, sales, Entrepreneur Magazine and operations. Franchise 500 rankings She has overseen the design through its collective history. and production of hundreds of major digital, video, print, DYNAMIC APPROACH and direct mail marketing and Summa Franchise Consulting advertising campaigns, and created works closely with its affiliated and developed comprehensive company, Franchise Dynamics,

32 GLOBAL FRANCHISE | ISSUE 6.1 MULTI-UNIT FRANCHISING

MULTI-UNIT FRANCHISING: EVERYTHING YOU NEED TO KNOW Entrepreneurs are increasingly opting for multi-unit and multi-brand business ownership, after finding success with their initial franchise operation. To find out more about this growing trend, we spoke with accomplished franchisees and expert insiders to bring you this comprehensive multi-unit franchising guidebook

REPORT BY KIERAN MCLOONE

GLOBALFRANCHISEMAGAZINE.COM 33 MULTI-UNIT FRANCHISING

Embark on the essential multi-unit franchise journey

A cover-all guide for franchisors and entrepreneurs alike, shining a spotlight on this rising form of business ownership

ulti-unit franchising is operator into more of a managerial popularity could spell the death of the big. Bigger now, in fact, presence, and really cements the traditional master franchising model. M than it has ever been; idea of working on your business, as Previously known as the defacto franchisees and venture opposed to in it. method for international growth, capitalists are increasingly seeing the master franchising has long been benefits that come with opening many Comprehensive coverage considered a mainstay – to find out locations under a unifying brand, As part of this multi-unit franchising more about its possible decline, as opposed to starting up just one report, we touch on everything that check out p.44. singular unit. franchisors and franchisees alike This May also marks the beginning Why is this? For starters, having would need to know about the benefits of the Multi-Unit Month takeover several locations allows multi-unit and challenges that come with multi- of the Global Franchise Podcast, operators to manage cash flow more unit and multi-brand ownership. and to celebrate, we’ve launched effectively. If one site is seeing a On p.36, you can find a selection weekly episodes which specifically boom in popularity, for instance, of recent multi-unit franchising focus on all aspects of this exciting then the excess revenue can be deals from around the globe, which ownership model. To read a selection allocated to support other sites highlight just how popular this form of highlights taken from our within the portfolio that may be of franchising has become. From a interviews for this series, read the underperforming. doggy daycare boom to multi-brand comprehensive franchising guide Additionally, a multi-unit presence donut developments, franchisors big on p.38, and to dive into everything presents franchisees with more and small are reaping the benefits Multi-Unit Month, check out leverage than if they were a smaller that multi-unit brings. globalfranchisemagazine.com/ operator within a franchisor’s Elsewhere in this special report, multi-unit-month. network. Naturally, all franchisees legal experts Gordon Drakes of are required to receive support, Fieldfisher and Edward but a large multi-unit Levitt of Dickinson operator carries more Wright touch on the sway, and may rise of multi-unit, be able to have multi-brand operators increased input in (MUMBOs, for short), future operational as well as how decisions. This can multi-unit’s turn the multi-unit franchisee from an owner-

34 GLOBAL FRANCHISE | ISSUE 6.1 MUST-KNOW STATISTICS ABOUT MULTI-UNIT FRANCHISING (Source: FRANdata)

In 2019, multi-unit franchise operators controlled 54% of all franchise units in the U.S Around 9% OF MULTI-UNIT FRANCHISEES OWN more than one brand QSR has the highest concentration of multi-unit franchisees, with 81% of operators 4% in this space owning of U.S. franchisees own multiple units OVER 500 LOCATIONS

FRANCHISEES WITH BETWEEN TWO AND NINE LOCATIONS MAKE UP ALMOST ONE-THIRD OF THE U.S. TOTAL

GLOBALFRANCHISEMAGAZINE.COM 35 MULTI-UNIT FRANCHISING

SHOWCASING THE SUCCESSES BEHIND MULTI-UNIT FRANCHISING A round-up of the biggest recent multi-unit and multi-brand deals, highlighting just how popular this form of business ownership has become

he figures supporting the case for multi-unit T franchising are numerous, DOGTOPIA: DOGGY DAYCARE IN TEXAS but sometimes it’s easier to comprehend just how successful Prominent North American petcare example – who will open four sites in something is by examining some franchisor Dogtopia recently Houston – is a multi-brand franchisee recent case studies. announced not one, not two, and currently the largest Soccer Shots To highlight the prevalence of this but three multi-unit franchising owner in the brand’s network. form of business ownership, here agreements that would add a total “It’s clear that experienced multi- are a handful of multi-unit deals and of 15 new Dogtopia centers to the unit franchisees are now taking the brand’s portfolio in San Antonio, pet industry more seriously since agreements that have been made by Houston, and Corpus Christi, Texas. COVID-19,” said Alex Samios, VP of numerous leading franchise brands Signed with three distinct, franchise development for Dogtopia, as of late – for a comprehensive look experienced franchisees, these new “and they want a brand that at all the latest stories, make sure to locations showcase how reliable has the experienced leadership, visit globalfranchisemagazine.com/ brands promote increased multi- support, and systems that they are news unit ownership. Amber Woods, for accustomed to.”

CAPRIOTTI’S SANDWICH SHOP: DUAL DEVELOPMENT

In the three months since legacy franchisor Capriotti’s Sandwich Shop acquired chicken wing brand Wing Zone, both brands have signed many single- and multi- unit development deals that are set to bring more than 30 Capriotti’s and 30 Wing Zone locations to the States. The cause? A belief in the franchisor’s systems, says David Bloom, the chief development officer for both brands. "Our expansion is validation of the strength of our business model and our partners are excited about the phase of growth for both brands. Our continued success is what makes us the industry leader and will continue to separate us from others out there."

36 GLOBAL FRANCHISE | ISSUE 6.1 GOLDFISH SWIM SCHOOL: LESSONS IN THREE LEADING STATES

Learn-to-swim concept Goldfish franchisee groups Swim School signed a 19-unit are recognizing the franchising agreement with opportunities it brings, also. DUNKIN’: experienced multi-unit operators “As a multi-unit, multi-brand THE BENEFITS OF Rockridge Growth Partners in operator, the pandemic shined a March 2021 to bring new locations light on the tremendous value in MULTI-BRAND to Florida, Texas, and Virginia. having a diversified portfolio to Multi-unit agreements similar allow for balance and stability,” When several brands exist under to this have been the backbone of said the leading principal of one franchisor, it allows franchisees Goldfish’s growth strategy in recent Rockridge Growth Partners. “With to take advantage of cross- times, with the brand signing further prime real-estate availability and promotion, increased recognition, deals in Arizona, New York, and attractive lease options, we are and – in the best circumstances – Texas. It’s not just franchisors that eager to get these locations open multi-brand ownership. multi-unit is benefitting, however; as quickly as possible.” This has been the driver behind recent deals coming out of Inspire Brands, which owns the likes of Arby’s, Buffalo Wild Wings, and SONIC Drive-In. In fact, the parent company recently announced multiple development agreements that would see 26 new Dunkin’ BROOKLYN DUMPLING SHOP: restaurants open throughout Texas. GENERATING A BUZZ Furthermore, eight of them would be multi-brand sites that also offer Baskin-Robbins’ menu of ice cream. Before brand-new As with almost every multi- “Dunkin’ and Baskin-Robbins’ concept Brooklyn unit success story, these flagship growth would not be possible Dumpling Shop even franchisees joined up with Brooklyn without the introduction of opens its doors in spring Dumpling Shop because the base new franchisees to the system, 2021, it has already signed up several concept was strong, and it was easy coupled with dedicated existing multi-unit owners who will develop to see why owning several locations franchisees, which demonstrates the zero-human-interaction QSR chain could be superior to just operating their high confidence in our throughout Connecticut and New Jersey. one: “Getting into the brand early brands and world-class The first deal signed for Connecticut is a very wise decision. In the next support team,” said Grant comprises five Brooklyn Dumpling Shop two or three years, I expect we will Benson, CFE, senior sites, with the first opening in New see a lot of automat restaurants, so vice president of Haven. The second, which will bring it’s great to jump on board with the franchising and eight restaurants to New Jersey, has innovative concept now,” said the development, been signed by experienced multi-unit brand’s first multi-unit franchisee, Inspire franchisee Nick Desai. who currently remains anonymous. Brands.

HOOTS WINGS: FLYING HIGH IN THE STATE

Entrepreneurial couple Cary and that number up by opening eight to 10 Jackie Albert, who have a portfolio new sites every year afterward. containing 30 Schlotzsky’s restaurants, “Hoots Wings is an attractive have signed a deal to open 60 Hoots franchise option to Cary and I because Wings sites over the coming years we get to be on the ground floor of an – the brother brand to popular U.S. emerging concept on the fast-track hospitality chain, Hooters. for growth, while benefiting from all The couple plan to open at least the perks of having a national brand six Hoots sites in 2021, and then pick backing us,” said Jackie Albert.

GLOBALFRANCHISEMAGAZINE.COM 37 MULTI-UNIT FRANCHISING MULTI-UNIT MASTERY An insider’s guide to the ins and outs of multi-unit and multi-brand franchising, with valuable insight brought to you by the experts

ulti-unit franchising can be a very of multi-unit operators, franchisors, and exciting, lucrative business model for consultants about everything you need to M the right kind of investor, but in order know. The following are excerpts from these to maximize your chances of success, conversations, but to check out the complete you need to be aware of the challenges, benefits, package, head over to globalfranchisemagazine. and nuances involved. com/podcast, where Multi-Unit Month episodes To bring you a comprehensive guide to of the Global Franchise Podcast are released everything multi-unit, we spoke with a host every Friday throughout May.

38 GLOBAL FRANCHISE | ISSUE 6.1 THE MAKINGS OF A MULTI-UNIT EXPERT

Therese Thilgen, co-founder and CEO, Franchise Update Media GF: What kind of GF: Do they entrepreneur makes for a good need to have a multi-unit franchisee? deep background TT: There are several things. First in franchising? off, financial capability is critical. TT: We see lots of individuals Ensuring that the financing itself come into franchising without any really supports the short and franchising experience. However, long-term goals of the business – those that jump in right off the bat, especially important for those early knowing that they want to move start-up phases. toward a multi-unit growth strategy, I would say that the character of can be trained by their franchisor. the individual looking to become To become a multi-unit a multi-unit franchisee is also franchisee, in essence, there needs important; this individual has to to be a level of sophistication about have a lot of ambition and drive. business. To really be successful, They also need to have a love they need to understand that for people, because people are there is always risk involved. This everything. The people are how this isn't a slam dunk; there's a lot of multi-unit franchisee is going to energy required, as well as people grow his or her organization. management and site selection.

“I think that if I were ever to get back into franchise ownership, I would never do it without knowing that there'd be an opportunity for expansion”

Farrah Rose, head of international development, The Franchising Centre GF: How can franchisors assess profile of who they're looking for? Does GF: On an whether they’re ready for multi- the franchisee have enough business international unit growth? nous and know-how? Will they work scale, where FR: There are a lot of good multi-unit alongside the brand? does multi-unit franchisees out in the marketplace, but The onus is on the franchisor to franchising not always work? it's very important for a franchisor to ensure they're very clear not only FR: Multi-unit franchising would work look at whether they themselves are about the market characteristics, but in most countries, apart from emerging in a position to support a demanding, also the profile of the franchisee who's markets where local franchisees aren't professional multi-unit franchisee in going to represent their brand at a familiar with the essence of franchising, another market. Do they have a clear very large scale. and the relationships involved. Some of those markets would potentially prefer to go down the single-unit route, to see whether the system works in the market. I think that when a franchisee is not fully aware of the mechanics of franchising, they may push the boundaries and think that they know better. To some degree, that can cause quite a serious problem. For some of the emerging markets, franchisors would be well advised to trial with a single unit. If a franchisee meets the profile and works, they can give them the rights to open more units – they aren't putting all their eggs in one basket.

GLOBALFRANCHISEMAGAZINE.COM 39 MULTI-UNIT FRANCHISING

“For me, the beauty in franchising – the real HOW TO PREPARE opportunities – are Scott Greenberg, business in expansion” motivational speaker GF: Should entrepreneurs plan for multi- unit growth before buying a single unit? SG: I think that if I were ever to get back into franchise ownership, I would never do it without knowing that there'd be an opportunity for expansion. Whether that means I build out more locations and territories, or acquire them from existing franchisees, that will depend on the circumstances. But for me, the beauty in franchising – the real opportunities – are in expansion. I didn't do that the first time; I didn't have that kind of foresight. But in advising other people: absolutely, you want to make sure that there are opportunities to become multi-unit, should you make that choice.

Anton Skarlatov, founding director, Fantastic Services GF: How did you grow Fantastic Services to incorporate further brands/offerings? AS: We started as a general cleaning company. Customers were happy with our services, so they'd then come to us for more things. Once we enter somebody's home, we can then advertise the rest of our brands. We started with people asking us, but then we asked clients what else they needed. That way, we can offer services before our clients even begin thinking about them.

GF: How did you grow as a franchisor to support the network’s expansion? AS: We saw franchisors were lacking in the ability to provide all of the tools that a successful business needs. They needed a marketing company that they could rely on, so we created a marketing branch of the organization. Then there's technology. We needed to optimize our work in an efficient way. All of our services need to be accessible through people's phones, so we built a platform that can access everything we offer. There are over 100 services that we offer, if we separate them into small groups. If somebody comes and starts with us, they will automatically become a multi-brand owner.

40 GLOBAL FRANCHISE | ISSUE 6.1 MULTI-BRAND FRANCHISING

Kevin Hein, co-chair awfully difficult to go franchise and licensing back to a franchisor after the fact and practice, Akerman say: "I know I'm GF: What do entrepreneurs need to not supposed to do do before embarking on multi this, but can you give -brand ownership? me permission to do it KH: If you come into the marketplace anyway?" Most franchisors with aspirations to own multiple will say no. brands, the most important thing to do In this day and age, franchisors are much is to read the non-compete provisions in more amenable to franchisees operating your franchise agreement and any other multiple brands – provided they're not ancillary documents that the franchisor direct competitors. So you can't have two asks you to sign. burger brands in your portfolio, but you You need to have a really good could probably have burgers and Italian understanding of what you can and and Mexican without running afoul of most can't do under your contract. It is system requirements.

“If you come into the marketplace with aspirations to own multiple brands, the most important thing to do is to read the non-compete provisions in your franchise agreement”

Andy Johnson, multi- off of them. brand franchise owner, It's all about that service and Neighborly that experience. GF: Why did you opt to develop If I come to the multiple brands, rather than growing customer and tell through one concept? them it's not our AJ: I get asked that a lot, especially from issue and they can corporate. To be honest with you, I have call another company, four young kids, aged nine, five, three, and then that's not a good experience. But if I two. I don't want to travel – I want to stay say it's another issue and I can solve that at home and be with them. for you, then it makes a great impression. Another reason is that Neighborly's You've got to sell it to your concept is to put a fence around the technicians that you want to start customer, and I want to do the same other companies, not to make a whole thing. I don't like telling customers we bunch of money but to take care of the can't do something, and we kept getting customer. That's what they buy into: calls for drywall repairs and things that they can help the customer, no matter a plumbing or appliance brand couldn't what the issue is. provide. Now, we can do that. There's nothing really that we can't do.

GF: Have you had opportunities for cross-brand synergies? AJ: There's a ton of calls we get where the customer assumes the kitchen sink is backed up, or the dishwasher is messed up, but really it's the other way round. Technicians become friends across our brands, and they'll call the office on behalf of the customer to take that responsibility

GLOBALFRANCHISEMAGAZINE.COM 41 MULTI-UNIT FRANCHISING

Talking MUMBO jumbo: the legal risks and rewards of multi-unit, multi-brand franchising MUMBOs have been a long-established feature of mature markets, but there are some important pros and cons that franchising professionals need to consider

WORDS BY GORDON DRAKES

ccording to the It is common that a MUMBO Of course, there is another category most recent BFA- will have started as a family- of MUMBO, which is exemplified A NatWest survey of run business, and by the time by the likes of SSP, Welcome Break, the franchising sector the second generation is ready and Sodexo, which are specialists in the U.K., around a third of to take over the reins, they are in ‘closed’ or ‘captive’ retail franchisees now run more than looking to expand the business environments such as airports, one franchise business, compared both with their original franchise, train stations, university campuses THE AUTHOR to just a quarter of franchisees in and by diversifying and taking and sporting venues. Gordon Drakes is a 2013. The trend is not just towards on additional, non-competitive partner at European multi-unit franchising, but also franchises. A franchisor’s law firm, Fieldfisher towards multi-unit and multi- LLP. He has over 15 perspective years of experience brand franchising. Diversification advised MUMBOs provide franchisors with in advising brands Multi-unit, multi-brand operators Diversification is a sensible access to experienced operators, on their expansion (aka "MUMBOs") have been a long- decision, particularly in these familiar with the needs of operating through third-party established feature of more mature uncertain times. By operating a franchise system and possessing models such as franchising markets, such as the a number of different brands, a an established infrastructure and franchising, licensing United States. MUMBOs have often MUMBO can protect its overall financial resources. and joint ventures honed their skills by operating a investment from the adverse effects Their operational efficiencies single brand for a number years, of economic downturns or changes and cost reductions due to developing their understanding of in consumer demand by operating shared facilities allow for greater the franchise model, and evolving franchised brands in different profitability and more rapid their managerial and operational sectors or sub-sectors. expansion. Appointing MUMBOs infrastructure. A number of established can be particularly beneficial to MUMBOs in the U.K. operate coffee foreign brands looking to establish shops, QSR food outlets, gyms and themselves in the U.K., or domestic hotels. Operating a diverse portfolio brands which hitherto have grown can enable a MUMBO to build up through corporate expansion but and sustain a real estate portfolio, which now wish to accelerate their supply chain and maintain growth through franchising. a multi-skilled The inclusion of MUMBOs workforce. reduces the number of individual “MUMBOs have often franchisees in the network, requiring less training/support honed their skills by operating from the franchisor, without diminishing the rate a single brand for a number years, of expansion. developing their understanding of the franchise model”

42 GLOBAL FRANCHISE | ISSUE 6.1 MUMBOs may achieve critical investment in the brand, to avoid allow the franchisee to diversify its mass by acquiring poor-performing capital being directed towards its position and become less reliant franchisees or corporately owned other brands. on a single brand. There’s also the stores, which in turn should In addition to the points opportunity for fixed costs and increase revenue and profitability. mentioned above, other aspects overheads to be spread or shared which need to be recognized and over multiple locations, increasing Possible downsides reflected in the agreement include: unit profitability. A MUMBO's increased influence and • For particularly savvy operators, bargaining power can disrupt the • A binding development schedule there’s the potential ability to traditional franchisor/franchisee which is usually tied to some form move employees between different dynamic – at least domestically. of territorial exclusivity brands, and gain insights into For some brands, MUMBOs have • Incentives for growth, such as different operating systems and become almost "too big to fail", reduced fees, costs, and rebates carry over/internalize operational so conversations over breaches • Increasingly complex funding innovations. Additionally, there need to be approached differently. and investment arrangements is more opportunity for career Franchisors should consider can affect the typical contractual progression and savings in placing limits on unit growth and positions, which regulate personal recruitment costs, as well as the alternative remedies to termination, guarantees, changes of control, ability to cross promote brands. such as requiring divestment or transfers of interest and business withdrawing incentives. sales. Some MUMBOs might even Taking all of this into account, the Also, there could be potential be contemplating floating on a obvious risks include: adverse effects if the MUMBO's public stock exchange (which has other operations create controversy happened in the U.S.), and the • Increased reliance on different and/or encounter financial impacts of a listing on the brand layers of management means that difficulties. Franchisors need to and the franchisor's own share a MUMBO owner cedes control and consider if there is a sufficiently price need to be considered raises the risk of a rogue employee strong contractual ‘firewall’ • Requirements for unit- putting the business in breach. By between the MUMBO's operation of level and group level key creating a large workforce, a MUMBO the franchisor's brands and other performance indicators may achieve the unintended effect of franchised operations. • Any obligations requiring the becoming less entrepreneurial Conflicts of interest can arise franchisee to devote its full time • An overzealous cross-default between the different brands, and attention to the franchisor's clause could mean the business is particularly in terms of the brand must be relaxed, recognizing occasionally faced with the threat allocation of resources between that the franchisee's management of termination them in areas such as personnel, will be operating additional • Ensuring there is adequate site selection, and capital. franchise systems. Any non- protection before investing the Brands should consider compete clauses must be reviewed capital to grow. Has the MUMBO requiring approval rights over any and, potentially, relaxed to ensure secured exclusive rights or other future brands that the MUMBO only specific competing businesses territorial protections? Is there might operate, and consider are covered sufficient growth opportunity in the imposing clear site requirements. • Cross default provisions that allocated territory? This can ensure that the franchisor enable a franchisor to terminate all • Greater personal liability – as the is given access to the best stores if one or a number of units portfolio grows, personal exposure locations, thereby preventing the are not operating in compliance to banks in the form of secured MUMBO from favouring other with the agreement lending and franchisors in the form brands on site selection. of personal guarantees can mean They should also consider A MUMBO’s perspective that individual shareholders taken requiring that the MUMBO makes On the other side of things, the on a significant level of personal an agreed amount of capital rewards for MUMBOs include risk should the MUMBO ever find available throughout the term for operating multiple brands that itself in financial difficulty.

GLOBALFRANCHISEMAGAZINE.COM 43 MULTI-UNIT FRANCHISING

Multi-unit: the death of master franchising? Master franchising has always been seen as the defacto method of international expansion, but its days at the top could be numbered

WORDS BY EDWARD (NED) LEVITT, CFE

id I get your attention? relied on the local knowledge of failures are many and varied, but Well, master the master franchisee. The master the key ones are poor adaption of franchising, especially franchisee would then take on the the business in the foreign market, D in international responsibility of modifying the unsatisfactory returns for the franchise expansions, is not dead, core business concept and how the master franchisee, the inability nor is it seriously ill. franchise offering would be rolled of the franchisor to monitor and However, what has been out to unit franchisees. maintain standards in the foreign THE AUTHOR developing in recent years is a The franchisor’s primary country, and Edward (Ned) Levitt trend away from master obligations would be to train the the failure of is a certified franchise the master executive, a partner franchising as the go-to strategy master franchisee about operating at Dickinson Wright internationally. More and more, the core business and about how LLP, Toronto, Canada, franchisors who want to expand to franchise the concept in the and provides legal beyond their borders are looking franchisor’s home country. services to Canadian at other options, such as area and international development or other multi-unit Potential for failure clients on all aspects structures as a better way to For those of us who have been of Canadian proceed. Why is this? active in international franchising franchise law – particularly us attorneys Historically successful – we can attest to the Traditionally, master franchising extremely high failure has been, hands down, the most rate for master popular way to expand a franchise franchise deals. system internationally. In its The root purest form, a franchisor grants causes for to a master franchisee the these exclusive right to expand the franchise system throughout an entire country. The rights usually come with a hefty front-end payment to the franchisor and the requirement that the master franchisee shares, at least, the royalties received from unit franchisees with the franchisor and sometimes a sharing of all payments by unit franchisees to the master franchisee. Frequently, the franchisor, instead of researching the foreign market and adapting the concept to fit it,

44 GLOBAL FRANCHISE | ISSUE 6.1 franchisee to open a sufficient franchisees in each country instead number of units. of through country masters, the “We can attest to the Understandably, at the top of returns are that much greater every franchisor’s wish list is to find for the franchisor, who keeps all extremely high failure a master franchisee that has prior royalties and other payments from franchise experience as a master franchisees and the benefits, if rate for master franchisee or franchisor and/ any, from being a supplier to or experience with the particular the franchisees. franchise deals” business being franchised. The beauty of a multi-unit criteria and thresholds, or left to That narrows the field approach to international develop organically as the system dramatically and makes the franchising is that, if a particular expands within the target country. search for a good master franchisee multi-unit franchisee proves From the franchisees’ point of that much more challenging and themselves capable over time, view, risk is reduced, because the time-consuming. they can always be rewarded with franchisee can ‘test drive’ the concept On the other hand, there are broader master franchise rights. before making a larger investment many more capable investors who In this scenario, the franchisor (i.e. significant front-end fees and can be trained effectively to directly would assign its other multi-unit infrastructure costs) usually required in operate a number of units within a franchises within the particular a master franchise approach. specific territory. country to the new master. The foregoing is not a pitch for one This usually results in a much approach or another to international The case for multi-unit more sustainable expansion of franchise expansion. Rather, it is a brief While the investment costs for the system internationally and summary of the new thinking about a franchisor are greater when dramatically reduces the international expansions and the role expanding internationally chances of picking the wrong multi-unit franchising is increasingly through a number of multi-unit master franchisee. playing in such expansions. This strategy can be negotiated Unfortunately, reliable statistics at the beginning of a multi-unit do not exist to measure the volume of relationship, based upon master deals versus multi-unit deals specific performance and the trends towards one or the other. However, anecdotally, the trend is definitely shifting away from master franchising and towards multi- unit franchising. Considering the high cost of failure with master franchising, it is certainly worth a second, sober look at multi- unit franchising in international franchise expansions.

GLOBALFRANCHISEMAGAZINE.COM 45 MULTI-UNIT FRANCHISING

Multi-unit ownership: the future of franchising? The statistics all point to a continued increase in multi-unit franchise operations, but we wanted to investigate the how and why of this increasingly popular business model

ulti-unit and multi- style of management lends itself to wrong, or your decision may not brand franchise increased chances of success. This have been a good one. You're stuck ownership has increased comes in the wake of horror stories solving that problem with the one M country master. dramatically over where master development has gone “If you have a number of multi-unit the past decade, with more awry; when franchisors can choose a franchisees, you may have ways of entrepreneurs opting to open several route that minimizes risk, they will. shifting in one or more of those multi- units with a brand as opposed to a “On the international front, the unit franchisees to a territory that singular location. knee-jerk reaction was always master another multi-unit franchise owner In addition, franchisors are franchising. But it was done in a way was having problems with.” beginning to consider multi-unit that left an awful lot of responsibility expansion over master with the master franchisee to franchising when determine what was going to be done A maturing entering particular in a foreign jurisdiction,” says Edward franchise industry As well as potential protection foreign markets; Levitt, a partner at Michigan-based against problems caused by master especially those law firm Dickinson Wright. mismanagement, multi-unit where a more “That had a lot of blowback when franchising edges out the likes of hands-on things didn't work out so well – for both the master, as well as single-unit or direct franchising the original franchisor. because of its financial incentive. Leaving an entire It costs a lot to onboard a country or a large franchisee. You need to ensure region within a that they are correctly trained, and country in the provide ongoing training months hands of one and years into their running of a master is risky. location. If you can choose between Things could go five individual franchisees who need training, or one single multi-unit group that operates five sites, it becomes clear which one franchisors may want to align themselves with. “Multi-unit has grown because of the cost of identifying, signing, training, and supporting individual franchisees, versus supporting multiple multi-unit franchisees,” says Bill Edwards, CEO of international- focused consultancy Edwards Global Services. “You have to put an amount of support into every franchisee. And if a franchisee owns three, five, or 10 units, then you put your support into them. If they only own one, then you still put your support into them.”

46 GLOBAL FRANCHISE | ISSUE 6.1 MUMBO mania franchisee, whereas you have to keep Alongside the rise of multi-unit searching for and dealing with many “Leaving an entire country franchising is an equal increase multi-unit owners,” says Levitt. “Multi- in the popularity of MUMBOs. That unit territories may also be smaller, or a large region within is, multi-unit, multi-brand operators depending on your strategy. Let's say that have a diverse portfolio of that you're dealing with England; it a country in the hands of franchised locations. depends on how you may carve the “[MUMBOs] are becoming more territories. You may have just four one master is risky” prevalent; they've been in the U.S. multi-unit franchisees for the entire – even as the corporate world for a while, but they are largely all in country, or you could end up having to becomes increasingly invested in food. So a franchisee starts out with deal with 20.” multi-unit ownership. a burger brand, and then they want a “There'll always be a space for mom- chicken restaurant and then a seafood Like the good old days and-pop locations, but you might find shop and so on,” explains Edwards. It can be easy for the traditional mom- that the multi-units will be in population “What's the benefit of that? It's very and-pop form of franchise ownership centers, and single-units will be in smaller simple: economies of scale. They have to get lost amidst the discussion markets,” says Edwards. “That means the built an infrastructure with people, between multi-unit and master suburbs, or very small towns that can't real estate, vendors. It's working franchising. After all, a family passing support more than one unit. And I hope for them, and they've built out 10 down a single restaurant location they don't go away, because that's the core locations in a territory, and so they through the generations is one of franchising: the single-unit owner that decide to pursue other brands. of the oldest and most revered puts their life savings into a franchise.” “They then use that proven profiles of a franchisee that veterans infrastructure to go to another brand of the industry still hold close to and show that they can manage this their hearts. kind of network, and then bring on Thankfully, there’ll another concept. By and large, brands always be a place love this. Not only is it a proven for this kind of operator, but it's one that knows what franchising in the concept of franchising is.” the future All of the above would give the impression that multi-unit and/ or multi-brand ownership is set to completely dominate the franchising world. And yet, master franchising, area developments, and even single- unit deals are still very prevalent amongst all industries under the franchising umbrella. This is because as flexible and beneficial as multi-unit is, franchise growth is always best observed on a case-by-case basis. What works for the growth of one brand may not for another, and franchisors need to be mindful of the potential downsides that come with multi- unit expansion. “You may be one-and-done with the master

GLOBALFRANCHISEMAGAZINE.COM 47

INSIGHT

How franchisors can be more resilient Why failing to incorporate resilience into a holistic franchise development program leaves the growth of the franchise to the winds of uncertainty

WORDS BY ROCHELLE CLARKE

here was the story of your portfolio grows. The fact of the place that protect their operations the wife who struggled matter is that disruptions are a part from planned and unplanned T but ultimately failed of life. As unpleasant as they are, disruptions. There is a reason for to right the business even businesses are not immune this. Experience has proven that after her husband who was the from the negative effects of an having the right measures in place business’ official owner/operator unplanned disruption. goes a long way in ensuring that unexpectedly fell ill. Or the story But while stories like these and the business is prepared to respond THE AUTHOR of the married co-owners whose the impact that they could have appropriately and minimize the Rochelle Clarke is the previously successful business fell on your franchise may be on the impact of unplanned events. CEO of Succession apart after becoming a pawn in the back of your mind, they may fall Strength and the founder of the mud-slinging of their contentious into the category of events that you Two types of disruption ContinuityStrength divorce proceedings, leaving may feel powerless to act on. How The truth of the matter is that online business employees, customers and does one protect a franchisee from resilience is an inside job. There continuity plan suppliers stunned. disruptions? How is it possible to are two major types of disruptions platform These have more in common secure all of the franchisees in your that a business will face: unplanned than may meet the eye. In both portfolio? After all, resilience could and planned disruptions. A lack of Photo by Libia Arteaga cases, the business was forced hardly be covered in a franchise attention to either of these could have to respond to an event that they agreement. Right? This might a devastating impact on the long term never saw coming and could have sound like an odd comparison, but growth prospects of the business. never anticipated. As a franchisor, I think franchisors could take a Unplanned disruptions, by these examples are not unique, page out of the resilience book of definition, are unexpected events you have heard disruption stories banks and hospitals. that seemingly come about with no that are similar to these and you These institutions are mandated forewarning. They can wreak will continue to hear even more as by law to have certain protections in havoc on a business because they take resources (both time and money) that would have used to fuel “In the United States alone there are 12 the business’ growth – resources that may not have been previously million small businesses owned by baby set aside. Statistically, one in every two boomers. Approximately 70% of them businesses will face a major disruption in its lifecycle. These will be retiring soon” disruptions are typically named

GLOBALFRANCHISEMAGAZINE.COM 49 INSIGHT

“Failing to incorporate resilience into a holistic franchise development program leaves the growth of the franchise to the winds of uncertainty”

‘The Five Ds’ and they refer to 20-30 per cent of these are likely to the eligibility for payment of a an unexpected death, disability, be transitioned – via succession or claim. It should therefore be seen divorce, distress and disagreement. sale – successfully. as a second line of resilience While the COVID-19 pandemic defense and should always be used may fall under the category How to make your in combination with some other of distress and its impact on network resilient resilience measure. businesses cannot be understated, Businesses are not powerless. Since the likelihood of one of the other every franchisee plays an integral SHORT-TERM PLANNING: The four major disruptions is probably role in ensuring the franchise’s best option for securing a business’ easier to imagine; although, the overall success and survival, operations from unplanned events impact of any one of these could franchisors are taking steps to that can happen at any time, is be devastating for a business, proactively secure the resilience of through a business continuity particularly a small business. their network of franchisees. Many plan. Business continuity plans The second type of disruption have taken steps to ensuring that are for unplanned disruptions that is planned disruption. As defined, franchisee growth is protected in may happen in the short term. these types of disruptions are both the short and long term. These contingency plans help a anticipated and are typically It takes a combination of actions to business to confidently respond included in the business’ de-risk a business and ensure that to unplanned events so that they operational plans; relocations it is as resilient as possible. Some could minimize the impact of and system upgrades may quickly of the ways that resiliency could the disruption on the business’ come to mind. However, there is be incorporated into franchise operations and recover quickly. A one type of planned disruption development programs in a holistic 2013 CMI study indicated that that is increasingly on the minds way include: business continuity of business owners and the plans helped 87 organizations – like franchisors – INSURANCE: This is usually an per cent of that support them. obvious choice for risk-conscious businesses That type of disruption relates to business leaders; many will stop the long term future of the business here. The trick is to ensure that and what happens when this businesses get the right type of generation of leadership retires. insurance with the right amount of The sheer number and rate of baby coverage. Some business owners boomer retirements are predicted opt to cover their business with to have a significant impact on the personal insurance but this is not businesses they lead. In the United usually advisable. Insurance, it States alone there are 12 million should be noted, provides a payout small businesses owned by baby when certain covered events are boomers. Approximately 70 per met. However, the payout is not cent of them will be retiring soon. always guaranteed. Business Unfortunately, without the right operations may grind to a halt while planning and preparation, only the insurance company determines

50 GLOBAL FRANCHISE | ISSUE 6.1 to become more resilient with 82 the day-to-day reality of running per cent recovering more quickly a business that they hardly have THREE WAYS THAT FRANCHISORS from a disruption. the time to anticipate and put CAN HELP THEIR FRANCHISEES TO plans in place to manage risks. BE MORE RESILIENT LONG-TERM PREPARATION: The challenge for franchisors Short-term planning: Business continuity plans Business transition (succession could be exponential based on for short term, unplanned events or exit) preparation takes care the size of their portfolio of Long-term preparation: Succession and business of planned disruptions that will franchisees. Instead of ensuring transition planning for successful succession or happen at some point in the that one business receives access sale future. Just like human life, with or to resilience tools, they need to Agreements: Buy-sell agreements to manage the without planning or preparation, ensure that every franchisee in interests of multiple owners. the natural transition of a the portfolio has similar access. business is a certainty. Business However, this could be overcome transition planning or some form by centralizing the franchisor’s of exit preparation ensure that resilience approach. right steps are taken, increasing The benefit to a franchisor of the likelihood of a successful centralizing a resilience approach transition. Succession plans are lies in the peace of mind that for businesses intent on executing comes from incorporating a internal transitions – oftentimes, scalable and consistent process but not always, to someone in the and tools. Failing to incorporate family; while businesses interested resilience into a holistic franchise in transitioning externally do so via development program leaves the some form of sale. growth of the franchise to the winds of uncertainty. AGREEMENTS: If multiple owners are involved, buy-sell agreements are a good option for managing the purchase or sale of interests of the business if certain triggering events occur. Many business operators are so preoccupied with “Franchisors are taking steps to proactively secure the resilience of their network of franchisees”

GLOBALFRANCHISEMAGAZINE.COM 51 INSIGHT

Top traits that make a successful master franchisee Risk takers, visionaries, entrepreneurs: apply within

WORDS BY ANDREW WALTERS

he opportunity to take seems to tick so many boxes. Appoint perhaps the first interested party, a business overseas a local representative that then grows who has the cash but no experience to exotic and lucrative your business on your behalf, and questionable motives, is not the T best you can get. global markets can be and also takes on the responsibility intoxicating. Almost all franchisors for both recruiting and supporting will recall the lure of receiving their all of the new cohort of franchisees. Mastering the concept first franchise enquiry from an For the privilege they must pay For the right business or individual THE AUTHOR that is considering a master international prospect. When you you a chunky upfront fee. What’s not Andrew Walters franchise, it represents an receive promises that they can be to like? is the founder of exciting opportunity. It’s the chance Kindling Franchise a great partner for you in their The cautionary tale lies in the to take a concept that Consultants, a country, it’s a lure that can be hard catalogue of franchise brands that has cut its teeth boutique firm to say no to. have signed master deals, only to overseas, with 17 years of As a concept, master franchising see development schedules missed, international franchise and to feels like it carries so much less risk. brand guidelines flaunted, and experience offering partnerships ended to the detriment specialist advice to The upfront fee will cover costs, the of both sides. franchisors looking master franchisee will bring onboard to expand globally all of the new franchisees, and you This can be greatly mitigated for kindlingfranchise.com only have to support one new person. the franchisor, by taking the time at It’s all good, right? Maybe, but if you the beginning to ensure that your thought franchise selection for your master franchise partners have the domestic network was important; it’s requisite background and traits that only amplified when picking a master. you know that they will need to Master franchising remains for succeed. What lessons did you learn, many franchisors the preferred and what skills did you wish that you approach for international had in-house when expansion. As a concept, it’s been you started? around for what With that in mind, feels like forever, and

52 GLOBAL FRANCHISE | ISSUE 6.1 introduce it to your home market. mutually exclusive, but as a rule of course, but without entrepreneurial The risk is significantly reduced thumb, the entrepreneurial spirit thinking, taking a master franchise compared to setting up alone, and usually lies on the franchisor side. into a new country is unlikely to the opportunity to build something For some, this makes franchising succeed. It may be that the majority really substantial with a strong an uncomfortable fit. of a franchise system fits the new hand in your own destiny is that Many great franchisees have market – or indeed much that much greater than buying a succeeded precisely because single franchise. they make no claim to be It’s a shame that – depending entrepreneurial, they understand “If you thought franchise on the concept – many people and they have bought a system for a businesses that would make reason, and in following it to the selection for your great franchisees have not tee have achieved their goals. Other considered doing so as they have highly successful franchisees have domestic network was felt the financial return not to done so by pushing boundaries. be significant enough. Or the rules While always challenging for important; it’s only around being a franchisee too franchisors to have the model constricting. Being part of stretched, every franchise business amplified when picking a thriving franchise network I’ve ever worked in have had does bring many benefits such as amazing franchisees that have a master” the enhanced brand awareness, improved the whole concept by joint marketing and promotional pushing it to be better, more doesn’t – either way, without some activities, and not least the degree innovative, and more agile. No degree of local insight, creativity of comfort that comes from knowing franchisor wants a maverick that and adaptation it will never hit that this franchise is working, insists that their logo design is its potential. and working well. The downside is better, that they want to “stick to that most mature brands will have the old marketing materials”, or Trustworthiness already granted rights to the most starts selling their own ideas within With every master franchise lucrative territories. the concept. However, many of the opening comes the inevitable legal best ideas in franchising have come fees to get a high quality Entrepreneurial from those at the coal face. Indeed, franchise agreement drawn up thinking the Big Mac was invented in a that adheres to local law. Add to Franchising by its very nature franchisee’s kitchen. that the need to provide franchise attracts people that have trod a If you fit into that latter category, disclosure, and to protect your corporate path, and are now then you would be the exact sort trademark and IP, and the costs looking to do something for of master franchisee I would want quickly accelerate. In return, you themselves. When done well, to recruit. You need to be someone get peace of mind and protection, franchising is an unrivalled that respects the brand and should the worst happen. way for those people to work understands the boundaries, of The reality is that these are for themselves, yet within a cocoon and following the rules of a proven system. Despite this, I still see many franchisees who would like to consider themselves entrepreneurs. The two are not

GLOBALFRANCHISEMAGAZINE.COM 53 INSIGHT

essentials, but yet your ability to the developing world where such a stay on top of your brand, to legally high premium is placed on British, challenge franchise breaches, and to American or other western brands, ensure your concept is not duplicated, there can often be a major incentive is markedly reduced the second to apply your brand to their offering that you start franchising overseas. as a way to expand and increase Particularly in more emerging markets. their pricing. For franchisors this To that end, finding the right master can give you an immediate footprint franchise that you know will both in a market, and accelerate your meet targets, but also will be a loyal market growth at a pace not and trustworthy partner, is absolutely possible through greenfield sites. fundamental. In some respects, they As a franchisor, these sort become you in their country, and I of master franchises are easier promise you that you want someone to identify ahead of time. So be that you trust implicitly and who will proactive, and approach them defend your brand to the hilt in the way rather than waiting for that dream that you would. enquiry to hit your inbox. franchise, and run it well. A broad background This is where a master franchise A visionary For most franchisors, it’s possible is different. You cannot just be good One of the key fundamentals in to expand by finding individuals or at running the franchise, you must franchising is that you are taking a businesses with backgrounds in the also be outstanding at recruiting concept that is proven, and using right industry to take your concept. new franchisees, and training and that system to build your own future. Whether that is fast food, education supporting them with as much care Except that’s not quite the case with or kids concept franchising, there will and skill as the original franchisor master franchising. It may well be be prospects with the right level of does. A background in franchising tried and tested, but it’s not in a experience and network to run your is ideal, but many of the skills new country, so there’s a leap of needed are transferable from faith required. other industries. For some it will be taking a concept “Many of the best ideas A great master franchise has a that is well accepted in the market, hunger to get the first location set but introducing a tweak on that, or in franchising have up and successful, with the primary it may be a new brand to an already purpose of proving a concept in- established space. That will likely be come from those at the country. That flagship is the key to the case when entering mature hitting the ambitious development franchised markets such as North coal face. The Big Mac targets that have no doubt been set. America. In other markets, it might be an entirely new concept that was invented in a An opportunity to needs to be introduced. Bigger risk, rebadge your portfolio but potentially much bigger rewards franchisee’s kitchen” We often think of franchisees as in being first to market. individuals, but many of the best A great master franchise takes master franchises are existing that risk, not blindly, but in a well businesses to whom a franchise researched, educated, and brand may make an excellent planned manner. What is needed addition to their portfolio. is vision to see the gap in the What is sometimes overlooked market, to understand the local is existing partners with an fundamentals that need to be infrastructure already in place, addressed and to grasp it with both that can be rebadged under the hands. A risk taker, or a visionary? franchisor’s banner. Particularly in Probably a bit of both.

54 GLOBAL FRANCHISE | ISSUE 6.1

FEATURE

WHERE ARE THEY NOW: QUIZNOS The first installment in our brand-new retrospective series, exploring the history behind the franchise industry’s most recognizable concepts

WORDS BY KIERAN MCLOONE

emember Quiznos? If you’re than 5,000 worldwide. franchising case study. of a certain age, then you’ll Only Subway edged ahead, and Quiznos’ certainly have heard of the allegedly superior quality (albeit quality Hopeful overseas R classic sandwich brand – that came with a heftier price tag) was beginnings whether that’s because of its downright elevating the franchise network to The year is 2001, and Quiznos has just bizarre ‘Spongmonkeys’ advertising unforeseen heights. launched in Europe. Opening its first U.K. campaign, its pioneering of the premium So how did the brand go from all that, site in Peterborough, Quiznos has now toasted sandwich franchise, or its gradual to just under 500 global sites? And what been operating under father-and-son duo fall from a QSR frontrunner to a brand in does the future look like for Quiznos, Rick and Richard Shaden for a decade. need of a considerable relaunch. following the acquisition of the brand Its global footprint has gone from At one point in the early 2000s, by REGO Restaurant Group in 2018? We strength to strength, and franchisees the Quiznos had it all. Franchisees were spoke to some industry insiders, and world over are starting to recognize the signing up in the hundreds, and by 2007 REGO themselves, to understand the potential that could come from aligning it had over 4,700 U.S. locations, with more revealing journey behind this fascinating themselves with the Quiznos name.

56 GLOBAL FRANCHISE | ISSUE 6.1 “In the States, Quiznos was this crazy brand that everybody knew. It was coming up to be just as popular as McDonald's or Burger King”

Mo’s team at his inaugural Birmingham site

Mo Pandoria outside his Quiznos location in Birmingham, U.K.

This includes ex-franchisees like Mo Pandoria, who launched his first Quiznos site in Birmingham, England in 2001. “Prior to joining Quiznos, my brother and I were in the telecom industry. At that time, we decided to find a side business to make additional income,” says Pandoria. “My brother was gungho about Quiznos; he had gone to their restaurants and thought the sandwiches were great. He couldn't stop talking about it.” After an extensive training program offered by Quiznos, One year later, Pandoria states Pandoria opened the Birmingham that Quiznos made success even site and his brother launched more challenging, by opening two another location across the Atlantic, other units just mere minutes from in Charlotte, North Carolina. At first his location – and closer to the things were promising, but Pandoria Bullring. Things began to look dire; soon learned that his site was going a reality reportedly faced by many to look a little different from those Quiznos franchisees as the brand’s across the pond. name grew and grew. “Brand awareness and marketing “When you're a new franchisee, were tough. In the States, Quiznos you're thinking that the brand is was this crazy brand that everybody going to support you and they're knew. It was coming up to be just looking out for your best interests. as popular as McDonald's or Burger So when they opened up these other the creation of American Food King. In the U.K., it was unknown. locations, we approached them and Distributors: a subsidiary of the There were probably two or three said that they were way too close to brand that Quiznos used to locations open, but nobody knew us,” Pandoria explains. supply its franchisees with about it. They couldn't even “They said: 'well, because the produce – at an allegedly pronounce the name in the U.K.” daily population in this area is X tricky mark-up. It wasn’t just brand awareness amount, we can do it. It's not going “As a franchisor today, I that Pandoria struggled with when to affect you.' But it really, really did. know that the success of trying to get his U.K. site off the That was when I realized I wasn't a franchise is from unit ground. Despite his location opening going to get the support I needed economics,” says Pandoria, in Birmingham city center – a from Quiznos. When I started to who is now the CEO of self- prime location, by all accounts – he realize that, I knew I'd have to care brand Idolize Brows was soon hit with unprecedented exit the business.” & Beauty. “It's all about how competition: the Bullring & Grand the franchisee does, and if Central shopping center opened The shrinking they're profiting. If they're in 2003. bottom-line not making money, then “At that time, the Bullring was A cannibalizing of its high profile what's the point in having the biggest shopping center in all locations is just one of several a franchise?” of Europe. So when that opened, reasons that could explain the As the bottom-line shrunk lots of major brands entered it reduction of Quiznos’ footprint. for many owners like Pandoria and everybody on the high streets Another key challenge that (with revenues of around started suffering.” franchisees came up against was $400,000 per year in 2006),

GLOBALFRANCHISEMAGAZINE.COM 57 FEATURE

REGO Restaurant Group’s redesigned Quiznos interior

American Food Distributors instead launched ill-advised get rich by helping people get reportedly took in $500m. By this promotions like free sandwich rich. It does not work the other point, the writing was on the wall: coupons; incentives that would way around.” things had to change, or Quiznos see franchisees take a further would fade into obscurity. financial hit. This, inevitably, led A much-needed lifeline Unfortunately, the brand to more and more individuals Then came the 2010s, which were leaving the network, with a a strange time for Quiznos. With reported 1,000 stores closing more franchisees leaving the between 2007 and 2009. network, and the world slowly “You have good franchisees recovering from a major recession, leaving the system, and the brand began looking for ways when they'd leave they to remain relevant in a shifting would sell off their store consumer landscape. to whoever would buy it – In 2015, a year after filing for oftentimes, that's a trade bankruptcy, Quiznos launched the down. Those franchisees Quiznos Grill Concept. This was would then realize that this met with middling reviews, and isn't as good as they thought, so was swiftly ditched in 2016. Jump it continues trading down,” says forward just a couple of years, Dan Rowe, CEO of development though, and suddenly there was consultancy Fransmart, and a a potential light at the end of long-time F&B professional who the tunnel. has been familiar with the Enter, REGO Restaurant Quiznos story since its launch Group. An organization created in Denver. to reinvigorate iconic brands, “It's just a classic story. REGO acquired Quiznos alongside You forget the number one rule Taco Del Mar in June 2018. It of franchising: a franchisor is soon initiated something of a only going to get wealthy if its ‘revolutionary process’, which franchisees are successful. You meant reexamining the brand

58 GLOBAL FRANCHISE | ISSUE 6.1 “It's all about how the franchisee does, and if they're profiting. If they're not making money, then what's the point in having a franchise?” and seeing where changes the brand could be made. to at As well as bringing in new least some equipment like flat top grills and position of its fryers to expand Quiznos’ menu, former glory. these changes were centered Current interest around franchisee satisfaction. is promising, at Namely, putting the interests of least: in February its network at the forefront of 2020, it signed a 20-store future strategy – something that development deal in Latin ex-partners like Pandoria were America, with locations eager for many years prior. planned for Costa Rica, “One of the biggest changes is Honduras, Panama, Nicaragua, that we are a franchisor that cares and El Salvador. about the franchisees' economic It’s not worth solely focusing model, meaning we place a great on the failures of a franchise deal of emphasis on programs that brand, but examining the Quiznos benefit our franchisees and help journey can provide some America and then the wider The new grow their bottom line”, says invaluable lessons for emerging world. Quiznos came out with Quiznos logo, Tim Casey, CEO of REGO franchisors currently on their own the more premium version of updated for the first time Restaurant Group. growth trajectories. that; there's always room for a since 2001 “We have and will continue to “I watched Quiznos take off like person to do the next big thing. create centers of excellence and a meteor and it was awesome,” That's why fast-casual happened a shared service support model, says Dan Rowe. “Subway in the first place: the world was comprised of talented individuals proved the model and built this showing us that there are enough across a wide array of functional foundation that you could have a people willing to pay more for a departments designed to support chain of sub shops around North premium experience.” our franchisees and to provide our franchisees with a strong economic model.” One of the most obvious changes that REGO has enacted is an update of the Quiznos look and feel, which includes an update to the brand’s logo for the first time in two decades. “The rebrand is a signal and a promise of change and evolution, and we look forward to fulfilling this promise for both our franchisees and our loyal consumers,” says Casey. The future looks bright While we may never see Quiznos return to the thousands of locations that it once occupied, REGO’s involvement could return

GLOBALFRANCHISEMAGAZINE.COM 59 BEHIND THE BRAND: PARTNER CONTENT HELEN DORON AT A GLANCE HELEN DORON CELEBRATES EDUCATIONAL GROUP

Established: 35 YEARS OF 1985 Number of franchised outlets: Over 1,100 Locations of units: Albania, Austria, Bosnia and Herzegovina, Bulgaria, Chile, China, Croatia, Cyprus, Czech Republic, ORGANIC Ecuador, Estonia, France, Germany, Hungary, Israel, Italy, Kazakhstan, Lichtenstein, Lithuania, Macedonia, Mexico, Montenegro, Panama, Peru, Poland, Portugal, Romania, Russia, San GROWTH Marino, Serbia, Slovakia, Slovenia, South Korea, Spain, Switzerland, Thailand, Turkey, Ukraine, Vietnam The leading children’s education brand continues to Investment range: €150,000 - €250,000 Minimum required capital: €200,000 attract investment from around the world Contact: [email protected] helendorongroup.com

ince its founding by education specialist Helen Doron in 1985, the Helen HELEN DORON, CEO AND FOUNDER S Doron Educational Group has always placed great emphasis on “Many of our parents a community of like-minded people who propelling and rewarding the very best love what their children want to make significant changes in the individuals within its franchise network. are learning and decide to world and of course, they want to make Promotional opportunities across the become franchisees, as they want money doing what they like doing. brand’s global portfolio have enabled to do something that’s worthwhile for students to become teachers, teachers themselves and their communities. It’s “This is why they join us. We have students to become franchisees, and franchisees many people’s ideal to work in a business who love learning with us, and their greatest to become master developers for entire they are passionate about. dream is to become a Helen Doron teacher. regions or countries. We also advertise, but most of our growth It’s for this reason that Helen Doron “I am often asked how I get so many on all levels is organic. Most teachers and has managed to achieve such organic, wonderful people joining the network who franchisees come through knowing other consistent growth. Exceptional word- are so enthusiastic about their careers, people and recommendations from others. of-mouth encourages existing members and my response is always: ‘Birds of a People love the methodology and the core of the franchise network to elevate feather flock together’. We have really built values. It works and the children love it!” themselves into prominent positions; fulfilling the positive cycle of excellence that this educational leader prides itself on. DANJIELA HARALOVIĆ, NATIONAL FRANCHISEE FOR CROATIA Read on to hear more from some of the brand’s figureheads on why Helen “My experience as a Helen Doron is a true testament to the quality of the Doron Educational Group remains national franchisee began as a mother franchise and one’s ability to grow within the perfect investment for education- searching for the best English language the Helen Doron network.” focused entrepreneurship. program for my children while living in Budapest. After witnessing how positively Danijela (center, holding sign) with some of my daughter and son reacted to the her franchisees lessons, I immediately fell in love with the “We have really built methodology and knew that becoming a a community of Helen Doron franchisee myself was the next logical step in my career. like-minded people “Upon opening the first Helen Doron who want to make English location in Zagreb in 2009, the franchise quickly expanded to 30 centers significant changes across Croatia. Both Helen Doron teachers and parents have become successful in the world” franchisees over the last 12 years, which

60 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - Helen Doron Educational Group

ARMIN RITSCHNY “I love my career with Helen Doron, as I have a great team and “My wife did the Helen Doron Teacher Training Course and became a Helen I love working with such friendly, Doron teacher. This is how I initially got into contact with Helen Doron English. I had been supportive, and positive people” working for Siemens for years and wanted to be self-employed.

“I found that becoming a master franchisee GYTIS AND ALINA GRIGALAITIS, for Helen Doron was the right thing to do, as it LITHUANIAN NATIONAL FRANCHISEES works and I brought quality education to the children in my community. I have now been Romania. a master franchisee for 21 years and I have She was very never regretted this decision.” surprised there was no Helen Doron in Armin Ritschny, master franchisee for our country and Southern Bavaria and Baden-Württemberg highly recommended everything about the program and gave us the idea to open the business here TATJANA PETKOVIC in Lithuania. We then applied to “I found out about the network Helen Doron through when an inspirational teacher a Lithuanian national trainer hosted me during my international campaign run by group travels. I understood right away “I have taught kids ages the head office. We what a great opportunity this was and two to seven for five “A friend of Alina’s are thrilled to be the immediately took the teacher training years, and middle and from Romania lived newest members of course, taught by Helen Doron herself! In high school students in Kaunas, Lithuania, the community!” 1998, I became the very first Helen Doron for another five years. for six months and Early English teacher in Serbia. I have also taught kids she was looking for a Gytis and Alina and adults English as a Helen Doron English Grigalaitis, the newest “As the network changed its franchise Second Language here School here since her national franchisees system, introducing the Learning Centre in Lithuania. son attended in Sibiu, for Lithuania model, I became a Learning Centre franchisee. Since then, I have never doubted that my decision to become a Helen Doron master franchisee would lead me on the road to success. It all started in October 1998 with my training in Dusseldorf, and I became a master franchisee in 2005, and am currently national franchisee for Serbia.

“I love my career with Helen Doron, as I have a great team and I love working with such friendly, supportive, and positive people, both locally and around the world. It’s not just a business. We feel very connected, as we have formed our own community, and the parents feel that – they feel a team spirit amongst people who are devoted to teaching their children.

“I feel that all of the Helen Doron global community is an important part of my world, and just as I have created this type of environment in Serbia, I also receive a lot of ongoing support from the head office team and other franchisees around the world.”

Tatjana Petkovic, national franchisee for Serbia

GLOBALFRANCHISEMAGAZINE.COM 61 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Expense Reduction Analysts

In demand, AT A GLANCE EXPENSE REDUCTION ANALYSTS

Established: and ahead of 1992 Number of units: 700+ Location: Worldwide Investment range: $50,000 - $100,000 (single unit), $150,000 - $1,000,000 (area the curve or master) Minimum required capital: $50,000 Contact: [email protected] Expense Reduction Analysts is on the cutting expensereduction.com edge of cost optimization “As a franchisor, s a finalist for the Global internal Global App. Having these Franchise Awards 2021 tools operational pre-pandemic we tend to stay in the Best White Collar has meant that our franchise A Franchise category, partners were ready to effectively ahead of the Expense Reduction Analysts (ERA) communicate, develop business was built to thrive in tough times. relationships, and deliver solutions curve in terms of For nearly 30 years it has been while others were still getting to grips acting as a trusted advisor, helping with online meetings.” the technology businesses to rebuild and grow no and tools that matter the economy. RECORD-SETTING, EVEN This last year has been tough on a DURING A PANDEMIC we provide to number of levels for many companies. This approach and the ever- Throughout it all, ERA has continued increasing demand for companies our franchise to support business communities to operate in a more cost-efficient by helping them to identify savings manner has allowed the ERA network” in their spending where they never network to record its best month thought possible. ever in March 2021 in client receipts franchisees to automate much of “Much of this is due to the and new client acquisitions. the front-end analysis and provide pioneering spirit that is engrained New franchise partners joining amazing visualizations to into the culture of the organization, the ERA network are also benefiting their clients. allowing us as a network to innovate from this pioneering spirit, as the These innovations and more have and find solutions for our clients in business continues to find new ways been developed by ERA’s in-house their time of need,” says Ed Purnell, to support new starters – especially Incubator team, who nurture initial EMEA franchise recruitment manager. in their first year of operation. concepts into fully researched, He continues: “As a franchisor, we For example, leveraging the developed, and robust programs or tend to stay ahead of the curve in power of social selling and tools for the whole network to use. terms of the technology and tools networking is essential within the This forward-thinking approach that we provide to our franchise B2B environment; however, it can combined with the increasing network, such as Teams and our be difficult to master, especially demand for their “No Savings, when juggling the multiple tasks of No Fee” services has meant that starting a new business. ERA is a very attractive franchise To combat this, ERA provides business model in today’s world, each new recruit with a dedicated and during 2020 it has seen a rapid resource who is focused on increase in inquiries for the brand developing new routes to market internationally. and generating inbound leads for If you are wondering whether you them. They do this for the first six could be a part of this network, you months and provide training at the will need to have a strong career same time, so that the franchise at management level. That being partner can confidently take on the said, you do not need to have an responsibility themselves. analytical background. Many of New software leveraging artificial ERA’s franchise partners come from intelligence is also being released to a sales or operational background the franchise network which allows as well as many others.

62 GLOBALFRANCHISE | ISSUE 6.1

BEHIND THE BRAND: PARTNER CONTENT

Making AT A GLANCE GRAVITY

Established: 2014 (franchising since 2017) franchising a Number of franchised outlets: Six and one master (min 14 units) Location of units: U.K., Europe, Middle East Investment range: fun, sociable Up to £6m Minimum required capital: £500,000 Contact: Richard Lang, franchise director, [email protected] experience gravity-uk.com/franchising

to go out and have fun, together,” said Gravity is the U.K.’s leading active entertainment Harvey Jenkinson, CEO of Gravity. Finding opportunities in high footfall brand – and it is changing the high street forever areas is what sets Gravity apart, he continues. “Being in malls and on the high street gives us such an advantage he pandemic has rocked LAYING THE over our competitors.” retail, but one sector is GROUNDWORK In 2017, the business formed Gravity seeing unprecedented T Gravity was founded in 2014 by Simon Franchise. In the initial incubation demand thanks to a new Whicker, Harvey Jenkinson, and phase, the priority was to engage with vision for the future of the high street Michael Harrison, who shared a vision international landlords and enable and shopping centers. of providing safe and exciting family partners – making it easy to access a Gravity, the U.K.’s biggest name fun on a mass scale. Michael and ready-made property portfolio. in active entertainment, provides Harvey remain passionately involved The business has been backed by experience-led leisure in settings – having worked in every area, from Guinness Asset Management and was that department stores and retail front-of-house to visitor supervision recently listed in the Sunday Times giants once dominated. – in their drive to actively support the Fast Track 100 (U.K.’s fastest- business and franchisees. growing companies). “We see ourselves as Over the following years, two Now, Gravity finds itself ready to sites rapidly grew to 22 in the U.K., capitalize upon this carefully built nothing short of essential Germany, and Saudi Arabia, where a pathway for growth. Rollouts will further 14 sites are in the pipeline. accelerate throughout the second for thriving real estate “People want leisure, to socialize, half of 2021. divisions across the world

Harvey Jenkinson, after COVID-19” co-founder and CEO & Michael Harrison, Fun is the word at Gravity, with co-founder and COO thrilling multi-level e-karting, best-in- class trampoline parks, daunting high ropes, and futuristic augmented reality bowling among the 30 activities now offered for franchisees. Gravity works with the industry’s most innovative designers to give each site its own identity – bringing New York’s buzz or Tokyo’s energy to the local high street. The brand appeals to families with a broad demographic that includes adult leisure, families with young children, teenagers, and adult fitness. With a reach of millions, the brand is fast becoming a household name and a destination synonymous with fun.

64 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - XxxxxxxxxxxGravity

GLOBALFRANCHISEMAGAZINE.COM 65 GLOBALFRANCHISEMAGAZINE.COM Staff enjoy working in an energeticworking Staff enjoy JOIN THE FUN dropping, costs are Demand is growing, There is primed to capitalize. and Gravity time to join the active be a better couldn’t starting a by entertainment industry the journey, start To franchise. Gravity in touch today. get manufacturer with 50 years of experience. years 50 with manufacturer suite of is also an extensive There tools, plus and management marketing sense of support and an active ongoing amongst franchisees. community days working no two where environment a provides the same. Gravity ever are and development training sector-leading bring the to help franchisees program people. best out of their

“This exciting four-floor four-floor “This exciting As well as favorable rent and rate rent as favorable well As will also franchisees Prospective consistent quality ensure To eatery, live music, and high-end music, and high-end live eatery, of the brand’s proof are cocktail bar explains. Jenkinson as flexibility, will showcase entertainment hub that venues to create ability Gravity’s that whether groups, to all age cater corporates. or friends, be families, uncertainty, travel With the current will experience this immersive they like to feel enable customers different could be in a completely world.” place in the to Gravity’s experience and reputation experience to Gravity’s in the sector. inward has negotiated deals, Gravity on the landlords by investment of sites. majority expertise Gravity’s benefit from sites andin identifying profitable equipment. securing best-in-class Harvey founder Gravity In 2019, of appointed as chair was Jenkinson the British and co-authored the IATP and best safety for Policy Standards in the industry. practice of portfolio Gravity’s across employs destinations, the company equipment an industry-leading INDUSTRY-LEADING INDUSTRY-LEADING SUPPORT the market, entered first When Gravity to find contributions from rare was it in the However, estate providers. real since, the business has beenyears alongsidework and able to engage an It’s landlords. largest world’s the thanks exists that only opportunity

Gravity Wandsworth introduces Wandsworth Gravity setting is the York New Upstairs, “Big-box leisure is booming in the leisure “Big-box “We expect to execute bigger and bigger to execute expect “We you months, 12-24 “In the next In 2020, disruptions, enforced site disruptions, enforced In 2020, proved The last 12 months have In Wandsworth, London, Gravity has London, Gravity Wandsworth, In to bring seized upon an opportunity to the capital unique offering a truly standing no problems – and is having the crowd. out from e-karting indoor a multi-level with high-powered – experience along a that race electric go-karts Japanese themed on thrilling track no is simply There streets. market this high- able to offer brand other setting. in a retail octane experience with lanes bowling full-length 16 for – technology the latest immersive physical blurring the line between AmericanAn guests. and digital for LONDON’S NEWEST NEWEST LONDON’S DESTINATION ATTRACTION U.S., and forecasters predict that it predict forecasters and U.S., becomes be long until the trend won’t on this side of the influential hugely see ourselves we Gravity, At pond, too. as nothing short of essential for across estate divisions real thriving COVID-19.” after world the the Middle East. more significant deals across the globe across significant deals more urgently conglomerates as larger into their brands seek to bring leisure placed is uniquely Gravity portfolios. the risk of sole reliance to help reduce and beverage. food, on retail, popping up in many will see Gravity as Europeanwell cities, as U.K. new Austria,destinations such as Spain, it Additionally, and Sweden. Holland, such as in markets will develop to invest. Oman and Dubai inArabia, Saudi Despite the challenges of 2020, of 2020, challenges Despite the the agenda. continues to drive Gravity customers than ever, more Now, and indulge memories to create want when – at a time sense of fun their larger booming for opportunities are contributions, andspaces, increased agreements. commercial better restrictions and product closures, from the business prevent couldn’t customers 65,000 with over engaging sites outperformed month. Many per results. pre-COVID-19 that the business is pandemic-proof Jenkinson, to – meaning, according timebeen a better has never there CONFIDENCE IN IN CONFIDENCE TIMES UNCERTAIN

BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - School of Rock Beyond the film: AT A GLANCE SCHOOL OF ROCK

Established: 1998 an expanding Number of franchised outlets: 290 Location of units: North and South America, Taiwan, Spain, Australia, and Ireland (coming soon) Investment range: $1.5m+ for master global brand development, $322,000 - $521,000 for individual units Minimum required capital: $1m for master development, $125,000 for individual units School of Rock, the revolutionary music school helping Contact: franchisingopportunities@ aspiring musicians master skills, unleash creativity, and schoolofrock.com or +1 866-840-2179 franchising.schoolofrock.com develop tools they need to thrive in life has also won the Global Franchise Award for Best Franchisor in Children’s Services and Education

he first question people ask exclusive access to some of the about School of Rock is which world’s most famous musicians, new T came first: the school itself, or curriculum updates, virtual concerts the 2003 Jack Black movie? and more, and expanding into Taiwan, Originally launched as a single location in Spain, Portugal , and Ireland, Philadelphia in the late ‘90s, School of Rock alongside 23 school openings, the has developed into a trademarked brand brand ended the year on a trajectory and global phenomenon, operating and of continued growth and global franchising after-school music instruction expansion. schools in over 15 countries. “School of Rock defied the And while local flair is certainly In 2020, School of Rock kept the music constraints of the pandemic included in the School of Rock going, fostering connection and community to unlock breakthroughs that curriculum, some legends transcend to students around the world with loud have strengthened our concept, borders: The Beatles, David Bowie, success during the global pandemic. By competitive advantage, and our and Bruce Springsteen are heard at adapting its business model to offer virtual culture,” said Rob Price, CEO of every location, taught by veterans one-on-one music lessons, delivering School of Rock. “Our community of the industry. has sustained momentum through “School of Rock defied the innovation and an unyielding GLOBAL FRANCHISE commitment to enriching lives.” OPPORTUNITIES constraints of the pandemic Another unique aspect of School of A PATENTED, Rock – and a factor contributing to to unlock breakthroughs REVOLUTIONARY its immense brand expansion – is EDUCATION APPROACH its status as a recognized global that have strengthened Innovation has been key to School of children’s franchise, offering our concept, competitive Rock’s success, beginning with its core franchising opportunities music-education approach, The School throughout the world. advantage, and our culture” of Rock Method, which earlier this year Many successful franchisees are was awarded a U.S. patent validating it former or partially retired musicians as an exclusive concept and practice. or music industry execs, but others The groundbreaking School of Rock are successful entrepreneurs from Method builds musical proficiency other industries. There are also through its proprietary Method App, parents impressed by how School of Method Book collection, SongFirst Rock transformed their shy, isolated approach, Method Engine, and kid into a self-confident musician, performance-based music curriculum. finding his or her identity performing Students start their musical journey with a band onstage. by learning to play songs that inspire All franchisees have one thing in them. Classic songs like AC/DC’s common – an appreciation for the “Thunderstruck” and Led Zeppelin’s opportunity to improve the lives of “Stairway to Heaven” are used to children in their local communities teach technique and theory. through the power of music.

68 GLOBALFRANCHISE | ISSUE 6.1

BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - School of Rock Behind the Brand - InXpress

Join the leading team of global

AT A GLANCE shipping INXPRESS Established: 1999 Number of franchised outlets: 386 Location of units: 14 specialists Investment range: Market dependant Contact: [email protected] inxpress.com InXpress is transforming the lives of its franchisees, connect with a global network of while fostering a strong, international network shipping and logistics experts. Your new business will provide customers with the competitive he past year has of InXpress’ talented franchisees shipping they can rely on, and highlighted the benefit have done nothing but thrive from you’ll be able to utilize InXpress’ T of being a ‘recession- the moment their feet hit the ground. industry-leading technology, proof’ business owner developed to make managing – particularly one who has the A FAMILY AFFAIR your business, your staff, and ongoing support and guidance of an This includes franchisees like customers, easier to achieve. established, cutting edge franchisor. Stuart Vant, who joined InXpress A specific background in logistics For the 380-plus (and counting) while looking for a fresh start in isn’t required, though having franchisees that make up the InXpress his career. He identified the brand experience in sales, or employing international network, this guidance as a solid investment, and one that a strong sales-minded team, can has proved invaluable. While countless would support his growth with a make a considerable difference start-ups unfortunately fail within firm sense of energy and drive. in how quickly a franchisee’s their first five years of operation, many “The InXpress formula really network grows. works,” says Vant. “For those willing To recognize leading talent “For those willing to give to give it their all in delivering, and within its network, InXpress also going that extra mile, there is a lot awards its top ten “Top Gun” it their all in delivering, of opportunity out there. Their in- franchisees as part of an annual house systems for tracking deliveries celebration of excellence. and going that extra and sending invoices means we can Five are recognized for their focus on what is most important – high margins within the network, mile, there is a lot of keeping customers happy.” with a further five awarded for Within just 18 month, Vant has their rapid growth. opportunity out there” become one of the network’s fastest- In addition, InXpress’ “Young growing franchisees. In that time, he Guns” program has been has brought his daughter, Chloe, and established to provide anyone son, David, on board as members of leaving university with the means his Cambridge team. to start their own business. “Chloe got straight out there, By providing extra supporting speaking to as many people as and mentoring for up-and-coming possible,” says Vant. “She showed, young entrepreneurs who join the from day one, InXpress was prepared network, InXpress has helped a to go the extra mile for them.” number of school and college leavers achieve their ambitions. INDUSTRY-LEADING Put simply: no matter your LOGISTICAL TECH background, if you have the For entrepreneurs wanting to drive and passion to grow, walk down a similar franchising then InXpress’ recession-proof, path as Stuart Vant, InXpress reliable model is a solid provides the opportunity to pathway to success.

GLOBALFRANCHISEMAGAZINE.COM 69

BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - TRIB3

AT A GLANCE TRIB3 3 Established: 2016 TRIB : the Number of franchised outlets: 7 Location of units: U.K., Spain, Russia, Finland, China, Republic of Ireland (coming Q3 2021), and the Netherlands (coming Q3 2021) Investment range: £232k to £422k rapidly growing (market dependant) Minimum required capital: £137k to £309k, cash requirement can be reduced by c.50% with bank funding Contact: [email protected] boutique fitness trib3.co.uk/franchise

support team and a proven operational blueprint, so you don’t opportunity have to be from the sector to start your TRIB3. Likewise, the nature of the programming and workout Join an industry that’s seeing record levels of experience means the TRIB3 concept has strong consumer appeal across customer demand the largest possible audience to drive great results for each store. Each studio is equipped to offer the maximum amount of FITNESS IS BOOMING spots-per-session per 1,000 sq. ft The time is now to step into the of available space. A typical TRIB3 fitness industry. A recent survey by store will feature a studio offering Leisure-net of 33,000 active gym more than 40 spaces per class. TRIB3 members found that 90 per cent has been able to harness the most would use their fitness facilities powerful elements of the ‘boutique’ more or at the same rate once they model – the power of the group and were able to reopen, signifying the the community – but scale it for importance people are placing on volume so that it’s commercially taking care of their health. exciting and highly resilient to TRIB3 values franchise partners the impacts of COVID-19-related who are aligned with this vision distancing and safety measures. to build a global family of workout Each new TRIB3 studio can warriors. One of TRIB3’s recent multi- break even at prudent and highly site development agreements will achievable occupancy levels see the brand bring eight stores to allowing for fast, effective results, Ireland. This new territory came as a he backdrop of multiple while the group environment result of their new franchise partners lockdowns wasn’t typically cultivates loyalty and referral to recognizing that the concept would T a pre-cursor for growth, drive the business. really land and that there was a huge but for boutique fitness Stores can range from having an opportunity to create strong and franchisor, TRIB3, the rising focus on open plan reception with a unisex exciting connections with consumers fitness and physical activity combined locker area to more expansive through unforgettable workout with its unique, volume boutique model locations offering a lounge area and experiences. meant the brand has grown at pace. large-scale protein Mixology bar As TRIB3’s business model centers The brand announced further among other amenities. around putting the customer at international territories including the TRIB3 knows that one size does the heart of everything, every time Netherlands and opened several new not fit all, so that’s why franchise someone sets foot in TRIB3, they stores in Spain and the U.K. partners can create their perfect receive exceptional and unrivaled TRIB3, aligned with the available service. That’s why as a TRIB3 store VOLUME BOUTIQUE MODEL square footage, the demographic of matures, 80 per cent of revenue will So, what is the volume boutique model? their chosen location, and their come as repeat purchases from a Studio design is a big part of what investment level. store’s existing customer base and makes the TRIB3 concept and business Additionally, with the highly a huge proportion of new leads will model so special. With the proprietary curated design and commercially be generated by referrals from this TRI training system, where customers effective business model, as a master highly engaged base. train across Treadmills, Resistance franchise partner with TRIB3, you’ll Step into the fitness industry and and Intensity, the studio layout and quickly recruit store owners into be part of this exciting and growing programming are designed to maximize your network; all with the guidance sector with a proven business model – space and maximize results. and backing of a highly experienced start your TRIB3 today.

70 GLOBALFRANCHISE | ISSUE 6.1

INSIGHT

How to future proof your franchise agreement Why now is the time for franchisors to ensure their manuals are up to date and include any recent changes made to its ‘system’

WORDS BY EMILY SADLER

he past year has shown term improvements for their whole ‘back door’. Key contractual changes that the franchising franchise network. But how do you can be amended with consultation T business model is both incorporate such changes into your and agreement with your franchisees, resilient and adaptable. franchise agreement and make it especially if they are in the Whilst many businesses have future proof? franchisee’s interests. Failing that, the suffered, some have actually thrived opportunity to make such changes is and been lucky enough to benefit Incorporating system upon renewal, when franchisees will THE AUTHOR from a surge in demand. Others changes be required to sign your then, current Emily Sadler is a have had to be more creative and While a franchise agreement standard agreement. franchising lawyer figure out how best to adapt during generally cannot be varied during New franchisees coming on board at Paris Smith LLP a pandemic. Unable to rely on foot would sign the new version from the parissmith.co.uk the term without the consent of traffic, they’ve had to develop new both parties, the franchisor is outset and there may be a period of and alternative ways to reach their entitled to update its operations inconsistency between the terms customers, such as: manual from time to time, as need applicable to different franchisees, requires. The rules, regulations, which will need careful management. • Creating digital and virtual standards and processes in the Franchisors may wish to consider offerings manual are not set in stone, and giving themselves the right to amend • More efficient or cost-effective the franchise agreement will make the agreement unilaterally in order ways to deliver goods or services clear that it is subject to change as to comply with a change in the • Discovering new products or the business grows and develops, law affecting the franchise sector, revenue streams particularly if the franchisor is in especially as many of the changes the early stages of expansion. flowing from Brexit are currently For some franchisors, this Now is the time for franchisors to unclear as the U.K. government shift in operations might only ensure their manuals are up to date decides which laws to retain and be temporary. But for others, and include any recent changes which to remove or amend. experimenting with new ways of made to its ‘system’. For example, Future proofing in this way will working has made them think twice adjustments to allow for takeaways require solid internal processes about how they currently run their and home deliveries, changes to to ensure that renewals are dealt business – and could result in long- account for new products and/or with efficiently and that you services, the incorporation of new are kept abreast of the latest health and safety measures in line legal developments impacting with government guidelines, social franchising. While your franchise “Franchisors may wish distancing measures and the use lawyer can keep you updated as of virtual communications as an to changes in applicable law, in to consider giving alternative to face to face meetings turn you need to keep your lawyer and franchisee conferences. informed of any commercial themselves the right to updates you are considering, so Changing the they can advise you how best they amend the agreement franchise agreement might be incorporated. There is a difference between unilaterally in order to operational changes – which can Planning for rightly be amended via the manual business disruption comply with a change – and attempting to vary key terms Going forward, franchisors should be of the franchise agreement (such reviewing their franchise agreements in the law affecting the as the duration of the agreement, with a focus on provisions that apply a franchisee’s renewal rights or the in the event of significant business franchise sector” agreed royalty fee structure) via the disruption. The reality is that we

72 GLOBAL FRANCHISE | ISSUE 6.1 could be dealing with coronavirus for some time to come – whether in the “COVID restrictions have presented form of continued COVID-19 infection, in the U.K. or elsewhere, further logistical challenges when it comes to spikes of infection, new variants or developments of other coronaviruses. getting franchise agreements signed in Franchisors need to consider how their franchise agreements person or sent via post” can best protect them against future shocks and what changes Up until now, force majeure is able to return to its previous they ought to make. clauses have been drafted widely state after the force majeure event and can often lack detail as to what has passed. Events beyond exactly should happen in the event your control of force majeure. Going forward, Electronic signatures A typical force majeure clause force majeure type clauses should COVID restrictions have presented suspends – and may even end – deal specifically with pandemics logistical challenges when it comes performance of obligations where a (although arguably they are no to getting franchise agreements party is prevented from performing longer an ‘unforeseen event’) and signed in person or sent via post. by events outside of its reasonable should be clearer as to the rights of Currently there is a trend towards control. The pandemic shone a the parties to suspend, renegotiate electronic signatures for contracts spotlight on this standard, and or terminate. Such clauses should which overcomes such challenges, often overlooked, boilerplate clause. also deal specifically with the as well as having the added benefit During the pandemic, relief under corresponding payment obligations, of getting a deal done more quickly. the principle of force majeure how long any period of relief should Franchise agreements can has been sought in answer to the continue for, and how the contract be signed electronically, but following thorny issues: anything that needs to be signed ‘as a deed’ cannot. This is • Is the franchisee in breach by not operating the franchise business even though they have no customers? • Is the franchisor in breach by not providing its support obligations during lockdown? • Is the franchisee still liable to pay minimum royalty fees even though they have no revenues?

GLOBALFRANCHISEMAGAZINE.COM 73 INSIGHT

because deeds must be signed by hand in front of a witness who then provides their own signature by hand. When a witness signs the deed, they are confirming that “Key contractual they have physically witnessed the requisite party sign the the franchisee’s customers. Many changes can be amended document in their presence. agreements permit this, especially Sometimes the personal where franchisee premises are with consultation and guarantee (given by the involved, but many do not. individual(s) behind the Due to a recent change in the agreement with your franchisee company) within a law, it has now become difficult (or franchise agreement is signed impossible) for a franchisor to franchisees, especially ‘as a deed’ to offer enhanced terminate the agreement on protection that the guarantee is the ground that the franchisee if they are in the enforceable. Legal advice should has entered a formal insolvency be sought as to the options procedure. Therefore, the franchisee’s interests” available to a franchisor and franchisor now needs to have the will depend upon whether or not right to be able to terminate at the personal guarantee aspect an early stage in a franchisee’s if things go wrong’ at the outset sits inside or outside its main financial problems – before it of their relationship, but giving franchise agreement. To be belt has taken any step towards an this some proper consideration and braces, a franchisor wishing insolvency process – where the and incorporating some sensible to move forward with electronic franchisor has a reasonable provisions to follow in worst case signature of documents should belief that the franchisee is in scenarios could prove well worth it. also add a clause to the franchise financial difficulty. This is likely agreement permitting this. to require a drafting change to your standard agreement and may offer some additional protection A QUICK GUIDE TO Service by email FUTURE-PROOFING Now is also a good time to look at to the franchisor. another, often ignored, provision Use the agility of the of your franchise agreement Dispute resolution 1manual to build in regarding the service of notices. Finally, does your agreement operational changes. Only a minority of franchise set out a specific process to agreements provide that legal be followed in the event of a Unless the parties notices can be served by email, dispute between franchisor and 2 can agree otherwise, especially if they are a few years franchisee? For instance, should fundamental contractual old. In fact, some agreements still the matter first be escalated changes will need to be provide for service by ‘facsimile to senior personnel in each implemented on renewal and transmission,’ despite hardly business? And if that fails, can for new franchisees. Careful anyone still owning a fax! an independent third party step management and robust in to avoid deadlock? Note for processes will be required. Step-in-rights U.K. franchisors, the British Focus on provisions that You should consider whether Franchise Association offers a 3 would apply in the event of your agreement should contain mediation service. Having such significant business disruption ‘step-in-rights’ allowing you to contractually specified steps or worse case scenarios. Force step in and run the business in could help avoid time consuming majeure, step in rights and the event of termination or expiry and expensive litigation. dispute resolution procedures of the agreement, in order to In my experience, parties don’t will all be important. preserve continuity of service to wish to address ‘what happens

74 GLOBAL FRANCHISE | ISSUE 6.1 SHOW PREVIEW: PARTNER CONTENT Show Preview - Franchise Fair 2021

AT A GLANCE FRANCHISE FAIR 2021

The first-ever Date: 27 May, 2021 Time: 09:30 - 19:30 (CET) Swedish virtual franchisefair.se franchise event

Creating valuable connections between franchise brands and entrepreneurs seeking new business opportunities

s part of its ongoing “We need more alternatives mission to serve the for recruiting franchisees and A franchise industry, master franchisees in Sweden and Franchise Group has are pleased to be presenting the developed this platform to help first-ever virtual franchise overcome current challenges for fair dedicated to this market,” says Swedish brands finding franchisees, Kristina Uhrgård Perman, CEO, and also to provide a more accessible Franchise Group. ”The fair is both way for international brands to enter cost-efficient, pandemic safe, and the market. has measurable results. We hope “We need This one-day event is free to this initiative will be able to assist attend for entrepreneurs who will and ease franchisors’ challenges in more alternatives also have the opportunity to watch recruiting their new franchisees.” masterclass sessions, participate for recruiting in Q&As, as well as be entertained in REASONS TO the Fika area. franchisees For franchise brands, it’s a PARTICIPATE unique opportunity to present + Create valuable connections with and master their concept in an engaging way the most exciting and successful and start a conversation with future international and local franchise franchisees in franchisees about fulfilling their concepts looking to establish Sweden and are ambitions. Virtual doors open at or further expand in Sweden 09:30 (CET) and close at 19:30, giving + The meeting planner will enable pleased to be international exhibitors and those you to make the connections that with a day job the opportunity to matter most, so that you can have the presenting the participate when it suits them. most successful day possible first-ever virtual franchise fair dedicated to this market” + Watch inspirational and insightful talks from key figures in the franchise world about running a successful franchise, new trends, and opportunities to be seized during masterclass sessions + Participate in the Q&A forum to discuss with and learn from your peers in the franchise community + Enjoy the Fika area where you will be entertained while you have a break + I.T. gurus will be on hand to ensure a virtually painless experience.

GLOBALFRANCHISEMAGAZINE.COM 75 BEHIND THE BRAND: PARTNER CONTENT Bringing AT A GLANCE PAULANER

Established: Bavarian beer 1996 Number of franchised outlets: 50 Location of units: Germany, China, Russia, Singapore, and cuisine to Azerbaijan, Taiwan, Macau, Indonesia Investment range: €2,500 to €3,000 per sqm. Minimum required capital: approx. €100,000 the world Contact: Mrs. Nadine Morper, [email protected]

paulaner-brauhaus-worldwide.com Paulaner is taking its guests on a personalized trip to Munich ideally suited for high-traffic locations such as airports, shopping malls, or train stations. reat company, a freshly tapped which has developed a franchise beer, pretzels fresh from the system for beer-oriented gastronomy DEEP CULTURAL IDENTITY G oven, on a sunny day under the and understands how to bring Starting in 1989 on Munich’s chestnut trees in the Paulaner Gemütlichkeit, genuine Munich Kapuzinerplatz, it is now an beer garden. brewing art and authentic Bavarian international success story. That This is exactly how the Munich lifestyle cuisine to life anywhere in the world. year, the first restaurant with its own defines itself, and this is exactly what PFC is a 100 per cent company in-house brewery opened just two you can experience when you walk into a subsidiary of the world-famous kilometers from the Nockherberg, Paulaner franchise restaurant, anywhere Paulaner and offers its gastronomy where Paulaner beer was brewed for you are in the world! Whether in Berlin, concept in three sizes. some 400 years. Singapore, Moscow, or Beijing, every visit to The Paulaner Bräuhaus has its own This unusual idea aroused the a Paulaner concept restaurant feels like a in-house brewery and is the flagship interest of the German Lufthansa short trip to Munich. among the restaurants; the Paulaner together with the hotel chain Wirtshaus is the mid-size concept Kempinski, who wanted a Bavarian GENUINE MUNICH BREWING and serves fresh Paulaner beer from restaurant with house-brewed The company behind this is Paulaner Munich; and the Paulaner Bierhaus, Paulaner beer in their new hotel Franchise & Consulting GmbH (PFC), as the smallest property size, is complex in Beijing. At that time, Paulaner had no export business with China, which is why they initially rejected the request. But after convincing all parties, the first international Paulaner Bräuhaus was opened in 1992. Since that day, more than six million liters of expertly- brewed beer have been served in Beijing alone to date. Whereas at that time the company was still operating under a loose licensing system with the main focus on beer sales, today it has a fully- fledged franchise concept with a 360 degree approach. It can be implemented even without experience in Bavarian cuisine and culture. In addition to traditional beer expertise, the Paulaner franchise concept offers a unique solution for implementing authentic Bavarian cuisine anywhere in the world. Behind the well-known logo of the Paulaner monk lies centuries of beer

76 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - XxxxxxxxxxxPaulaner GLOBALFRANCHISEMAGAZINE.COM 77 GLOBALFRANCHISEMAGAZINE.COM “The Paulaner franchise Paulaner “The a unique offers concept implementing for solution cuisine Bavarian authentic in the world” anywhere

“Obviously, the COVID-19 crisis the COVID-19 “Obviously, steps in big very was The result it is the the end of the day, At at or at the Oktoberfest Whether have concerns about inviting a new concerns about inviting have home and your to partner franchise you spouse, your them to introducing more. or years commit to 10 shouldn’t and trust, understanding, Mutual for elementary communication are says. he success,” business. Most impacted our hugely in China. are restaurants of our an issueyet not was While COVID-19 had to temporarily we in Europe, in China close almost all restaurants at the end to the next one day from importantwas It 2020. January of be to always us to act quickly, for and to partners, our for available that meet solutions find individual and still provide local restrictions reflects streams,” sustainable revenue Eckart joins Lars who Schenk, Jürgen board.in the management digitization, setting up a digital B2B of retrieval on-demand for platform material, videos, and marketing files, and online training, webinars regular upgradeand development further and system. takeaway of the existing location, combination of operator, and concept that is essential guest a memorable to creating and franchisee Franchisor experience. to push each other together, grow create and jointly excellence, achieve to talk memories that guests like the experience about and share with others. restaurants, franchise the Paulaner themselves immerse one should fully the teamThis is how in the brand. – and approach defines its 360 degree way, that this convinced are they benefits. everybody

“This ensures that each location “This ensures iswith the franchisee Cooperation partners their considers Paulaner intowalk guests do not just “Our would is certain that it Eckart Lars MUTUAL TRUST TRUST MUTUAL expertise In addition to professional gastronomy, and a passion for long-term a common basis for is essential. Larscooperation to the selection to refer likes Eckart you “If as a couch date. process BREEDS EXCELLENCE Another success factor in the success factor Another 80/20 implementation is the concept cent of the 80 per formula: to and necessary is predetermined cent are 20 per authenticity, create local adaptations. character distinctive brings in its own concept fits Bavarian and that our into its surroundings,” seamlessly managing director Eckart, Lars says us the best of both“This gives of PFC. Each of the sites is individually worlds. look at allWe and handpicked. vetted and carefully factors and micro macro this location fitswhether consider The and the operator. Paulaner plays domestic knowledge partner’s because no one knows role, weighty a do.” than they better the local market areThe partners to success. the key their know who F&B experts not only hand, the back of their business like hosts. but also excellent but as co- as franchisees, not only role a decisive play who entrepreneurs success. in the company’s them onwelcome we restaurants; our explains trip to Munich,” personal their is assisting in thewho Morper, Nadine a good about having “It’s expansion. concept Paulaner Our time together. socializing a place for are restaurants and companionship. Selecting our as hosts and partners franchise is therefore partners trustworthy hearts.” close to our especially ofwithout this level at all work not be success can’t “Our cooperation: team, a great to our attributed solely and a smart concept. It’s brand, strong partnerswith our the collaboration to life restaurants that brings our guests an their and gives locally experience.” authentic Bavarian LOCAL FEEL, FEEL, LOCAL APPEAL GLOBAL tradition, genuine craftsmanship, genuine tradition, The Paulaner passion. and pure brew world the all over brewmasters Law, Purity to the Bavarian according tangible the art of brewing and make guest. every for BEHIND THE BRAND: PARTNER CONTENT

The premier AT A GLANCE 30 MINUTE HIT

Established: 2004 boutique Number of franchised outlets: 100+ Location of units: Canada, U.S.A., U.K. – Northern Ireland, Saudi Arabia Investment range: $120,000 - $220,000 boxing brand Minimum required capital: $40,000 Contact: Robert Button, [email protected] built for women My30minutehit.com training portal, offering members even more options to train when and where they want to. 30 Minute Hit is looking to expand its fitness-focused The circuit comprises 13 heart- pumping stations that each last communHITy for two minutes, while focusing on boxing/kickboxing techniques – including quick short bursts of high- 0 Minute Hit, a rapidly WHAT SETS 30 MINUTE intensity intervals. expanding premier HIT APART? Members begin by warming up 3 boutique fitness With no set class times and no and then work through the punching, concept, offers a scheduling, members have easy kicking, core-strengthening, and high-intensity, action-packed access to this amazing, fun, and self-defense-inspired stations boxing/kickboxing circuit workout effective workout designed to while having a dedicated HIT designed specifically for women to achieve results and transform instructor challenging, teaching, and achieve amazing results. women’s lives in a safe, inspiring motivating them throughout. 30 Minute Hit’s successful environment. 30 Minute Hit provides a proven model and unique workout Endless boxing/kickboxing challenging workout in an inclusive design was founded by Jackson and combinations, real skill-building, environment. Our HITters are Deanna Loychuk in 2004, partly high-intensity intervals, core referred to as the communHITy to forego some of the challenges strengthening, and self-defense all because we are a community of non- that women face in typical boxing wrapped into a fun, inclusive, non- judgemental women that inspire, and kickboxing classes: inflexible intimidating environment. support, and lift up one another to class schedules, leering men twice 30 Minute Hit members enjoy the be the best version of themselves. their size, and expensive fees for flexibility of their unlimited training Whether one is joining us at the training that was not always the with a HIT instructor by their side beginning of their fitness journey right fit. and access to the Hit@Home online with zero years of boxing/kickboxing experience or as an experienced athlete, 30 Minute Hit helps HITters achieve their goals in physical, mental, emotional fitness. “I’ve had women come through who have reduced or completely eliminated medication for depression or anxiety. Seeing a new member come in with their chin down and then leaving with their head held high because it’s such an empowering style of workout is an amazing thing to be part of,” says Kristi Bieber, owner 30 Minute Hit Vernon, BC, Canada.

INCREASED WORLDWIDE DEMAND FOR WOMEN 30 Minute Hit, with over 17 years in the industry, has positioned

78 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - Xxxxxxxxxxx30 Minute Hit you you GLOBALFRANCHISEMAGAZINE.COM 79 GLOBALFRANCHISEMAGAZINE.COM ysical training training ysical -depth support programs -depth support programs anagement and business and business anagement and sales programs arketing dministration and management and management dministration Certification in ph A training M tools development M training In An amazing team to help way! step of the every Franchisees do not have to to do not have Franchisees “Seeing a new member member new “Seeing a chin their with come in with leaving and then down high head held becausetheir an empowering such it’s is an workout of style of” be part to thing amazing

• • • • • have any prior fitness industry or or fitness industry prior any have experience business ownership a through will go as each owner physical detailed UniversHITy program. and onboarding training Minute success, 30 their ensure To a its franchisees Hit provides business model including: turnkey • 30 Minute Hit has produced an 30 Minute Hit has produced Live interactive online training online training interactive Live streamlined POWER LEADS system LEADS system POWER streamlined no input and delivers requires potential members franchisees locations. flocking to their BE THE PERSON WHO GOES FOR HIT The ideal 30 Minute Hit franchisee individual motivated is a highly spirit. with an entrepreneurial the should have The franchisee willingness to learn and implement business and powerful proven our systems. management 30 MINUTE HIT TRAINING TRAINING 30 MINUTE HIT UNIVERSITY through certified are Franchisees Center Training UniversHITy our highly with 30 Minute Hit’s and systemized and well-developed specific the to training, approach the circuit to instruct skills required to teach quickly easy are and effectively. detailed and successful incredibly Guide to help franchisees Training staff as efficiently and train hire as possible. UNMATCHED FRANCHISEE FRANCHISEE UNMATCHED SUPPORT AND BUSINESS TOOLS MANAGEMENT is franchisees our Support for dedicated A a top priority. always to ready support team is always question and help 30 any answer way. in any Minute Hit franchisees tools library custom-built Our be beat. can’t simply to educate available sessions are up to stay and help all owners and market trends date on current physical ongoing while strategies to available sessions are training of the is always training our ensure highest quality.

Franchisees can spend their can spend their Franchisees Pre-authorized recurring billing recurring Pre-authorized 30 Minute Hit has streamlined To date, we have employed employed have we date, To In addition to the enormous social library media content and artwork 30 Minute Hit has meticulously 30 Minute Hit has developed, an online marketing engineered leads for to generate platform is a cornerstone which franchisees of the business. local on their time focusing valuable and community offline grassroots as the highly efforts marketing CUTTING EDGE ONLINE CUTTING EDGE ONLINE MARKETING SYSTEMS The initial franchisee investment investment The initial franchisee and $120,000 between ranges rates and the royalty $220,000, that begins fee system start on a flat month. Franchisees at $500 per of variety wide a come from have including stay-at- backgrounds, sales trainers, home moms, personal to name a executives and finance Common qualities the franchise few. candidates are in new for looks and passion. energy, personality, consistent, a produces of members revenue stable, and predictable membership competitive Our stream. valuable with price points paired instruction, unlimited high-quality schedules and convenient training, coming women keep Hit Minute 30 at years. for aspect of the business model every including setup to operations, from in assistance and experience with locations choosing appropriate of the franchisee the best interests in mind. and brand RECURRING REVENUE RECURRING REVENUE MODEL AND LOW START-UP COSTS START-UP the brand for further growth to growth further for the brand and growing 100-plus its existing Riyadh, Canada, the U.S., locations in Northern and Belfast, Arabia, Saudi and ahead to 2021 Looking Ireland. to 30 Minute Hit is excited beyond, expansion. worldwide continue its approach franchise the direct has proven which in markets, with continued successful so far in support investment that can effectively infrastructures As abroad. service franchisees distant and more new enter we will look to employ we markets, and master development area sense. make they where agreements INSIGHT

The importance of acting global but thinking local Five ways your can support your international franchisees on a local level

WORDS BY ANDY KNIGHTS

ne of the biggest lessons that business “As a franchisee, there’s no owners, whether O operating in the feeling more ostracizing than franchising industry or not, have taken away from experiences running a franchise hundreds during the last 12 months is THE AUTHOR prioritizing a feeling of community of miles away from your closest Andy Knights is chief amongst employees, clients and operating officer peers. I would even go as far as neighboring franchisee” of global children’s to say that ensuring the people performing arts franchise, Stagecoach within your network feel valued, always work to modify and improve on the day that Mother’s Day is Performing Arts – a understood and respected has the franchise model, while taking role he’s held since never been more important. observed in the U.K., when Canada 2014. He has over This is especially true if, like into account the global impacts that celebrates the day six weeks later. 20 years’ experience at Stagecoach Performing Arts, can alter it. working in the your global network of franchisees A franchisor that has its global Digital face time franchising industry is managed from one region or franchisees at the heart of the We live in a digitally advanced world and oversees all country. The majority of our operation will confidently which means we’re capable of seeing aspects of business operations team is – pre-COVID, communicate the fact that they loved ones, friends and colleagues, operations for the are constantly keeping abreast even if we’re kept apart by Stagecoach brand of course – based out of our U.K. of the current situation and stagecoachfranchise. head office in Woking. That means continents and oceans. I count my com we put significant emphasis on acting accordingly. blessings on an almost ensuring that, despite some of daily basis that the our franchisees being based 9,000 Consider cultures pandemic has forced us miles away from Stagecoach HQ, It’s imperative that, when all to the confines of our they feel like an integral part of our communicating with franchisees franchise network. overseas, you take into We call this 'acting global but consideration the cultural thinking local'. This is a strategy observances and events celebrated that can take a number of years to in that region. If you’re setting up a initiate but, once established, will Zoom call with a franchisee in the ensure your franchise opportunity U.S., perhaps cut them some slack if appeals to global investors on a they’re not available on the 4th July consistent basis. – or even the day after. And it goes Here’s how, as a franchisor, you without saying to check time zones too can act global but think local. before scheduling meetings with franchisees in other countries. Keep your finger on Considering cultural nuances is the pulse just as important when it comes In the franchisor-franchisee to marketing your franchise relationship, it’s the responsibility opportunity and, in fact, your of the franchisor to constantly look service or product. As a children’s at the bigger picture. Translating performing arts franchise, it is what is going on across the industry often the parents we’re hoping to on a wider level, such as changes in reach with our PR and marketing legislation, economic forecasts and activity, so we utilize national political or social events, is a critical awareness dates to align our component of your role – and activity. But there’s very little point will differ from nation to nation. in putting together a social media Importantly, the franchisor must campaign for your Canadian market

80 GLOBAL FRANCHISE | ISSUE 6.1 own homes during a time of video nineties and we can’t wait to host calling, on-demand movie streaming this again in 2022 – this year we FIVE WAYS TO ACT GLOBAL, and food delivery services. will be hosting our event virtually. THINK LOCAL Thankfully, because of these We extend an invitation to all digital advancements, keeping in of our international franchisees 1 Keep abreast of current political, economic, regular contact with franchisees and support them with travel social and legal progressions is no longer as faceless or arrangements to make the trip as 2 Constantly consider the cultures, awareness impersonal as a monthly voice call seamless as possible. During the dates – and time zones! – of each region or weekly email. Now franchisees two-day event, we encourage them 3 Make the most of digital communication around the world can join daily to work with their U.K. counterparts tools to instil a global open-door policy Google Hangouts, Zoom calls and build networks with other 4 When possible, encourage all franchisees to or Skype sessions. And hosting franchisees from other regions. attend seminars, exhibitions and conferences regular network-wide calls is in-person something I would wholeheartedly Expand in 5 Expand your existing network with all encourage you to embrace. neighbouring franchisees in mind. This will make franchisees feel included, celebrated and part of territories Another tool for ensuring global something bigger. There’s no real science to establishing a franchisees feel valued is to enrich feeling of a global network that works to Bridge the gap and diversify the regions they support franchisees on a local level – it’s operate in by honing your efforts simply about respecting and including Soon enough, the COVID-19 on expanding in neighbouring franchisees on an individual basis. But by lockdown of 2020-21 will be a implementing these steps, you will be well on areas. As a franchisee, there’s distant memory and communities your way to ensuring your entire network is can begin to reunite for the first no feeling more ostracizing than aligned and, quite simply, working together time in well over a year. While we running a franchise hundreds for the good of each other. still may be a few months from of miles away from your closest hosting in-person events again, neighboring franchisee. While it’s crucial that your franchisees you obviously don’t want to run if two locations are within close are offered opportunities to come the risk of encroaching on their proximity – especially true for together with their peers and agreed territory, it can be extremely newer franchise brands. This, in colleagues on as regular a basis valuable for the franchisee if they turn, will encourage franchisees as possible. have an ally within driving distance. to expand their own portfolios by Like most franchise brands, As well as being able to share investing in neighbouring locations up until 2020, Stagecoach had resources and collaborate on themselves, causing a domino effect hosted an annual conference and projects, the validity of a brand and bolstering the offering of your awards ceremony since the early name is much easier to establish brand in key markets.

GLOBALFRANCHISEMAGAZINE.COM 81 Invest in a High Tech, Revolutionary Franchise which is Educational, Fun & very profitable

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We are elated to announce that Springboard is back, live and in-person. As so many of you already know, there is truly no comparable event for emerging and [re]emerging franchisors. Over the past year, franchisors have faced unprecedented obstacles – and many have emerged stronger than ever. Don’t miss this opportunity to learn and collaborate with other franchise leaders who have been in your shoes. We can’t wait to reunite the best in franchising together in the same room.

Springboard 2021 will take place at the brand new W Hotel in Philadelphia. We will be among the first guests to take advantage of the hottest (and cleanest!) new spot in town. With over 45,000 square feet of event space, we will be working closely with the hotel to ensure everyone’s health and safety is top priority.

franchisespringboard.com / 215.825.3100

HOSTED BY

BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Tutor Doctor

Be a part of AT A GLANCE TUTOR DOCTOR Established: 2004 Number of franchised outlets: +720 the education Investment range: £33,000 – £67,700 Minimum requires capital: £20,000 Contact: [email protected] boom tutordoctorfranchise.com “No matter what Tutor Doctor is looking for likeminded franchisees to continue its education mission situation we find ourselves ver since Tutor Doctor to provide a comforting shoulder in, parents and burst onto the scene for parents and children across in 2004, it has firmly the world. guardians are E cemented itself as As the initial shock of the one of the world’s leading tutoring pandemic started to diminish, the always going to franchises. As parents and guardians franchisees and the home office across the globe recognized the team got their heads together and be looking for need for personalized, one-to-one developed ways to support not just tuition for their children, Tutor their clients but any family who ways to improve Doctor began its mission to become a needed help. household name. In no time at all, an Innovation their child’s With a basic understanding that Squad was formed: a group of one-size-doesn’t-fit-all in regards on-the-ground innovators who learning” to a child’s learning, it soon became were reacting and responding clear that the demand was growing accordingly to vital announcements. tutoring hours, with 40 per cent substantially. Fast forward over With this team in place, Tutor of those online. And in the first 15 years and Tutor Doctor now Doctor aims to help with forging the quarter of 2021, Tutor Doctor operates in over 700 different path to recovery. announced the acquisition of an territories, across 14 countries. “The whole education sector up-and-coming franchise brand, changed overnight,” said Frank Code Wiz – an exciting new venture ADAPTING TO ADVERSITY Milner, president of Tutor Doctor. that will propel the growth of both In all that time, no other year has “With the support of the Innovation brands! tested the education sector like Squad, we established our mantra Rebuilding the world of education 2020. However, equipped with the of ‘speed to change’, which quickly is going to require a lot of time, skills to help make the situation a emanated throughout the entire passion, and determination. In a little less stressful, Tutor Doctor global network. Every single person franchisees rose to the challenge collective effort with others, Tutor was singing from the same song Doctor is determined to be part of sheet as we understood what the support team for returning to needed to be done.” normal. It believes that the way to move forward is by creating equal CONSISTENT FRANCHISEE opportunities for the children of GROWTH the future, creating a chance for Whilst programs were being each one to thrive. implemented, it wasn’t long before Milner added, “no matter what savvy individuals recognized the situation we find ourselves in, true potential to be had in the parents and guardians are always education industry. In 2020, the going to be looking for ways to franchisor welcomed 62 franchisees improve their child’s learning. worldwide, all of whom spotted the There’s an opportunity to be had all chance to make a real difference to the time – this year, next year, and local families alongside building a the subsequent years after that. We successful business. truly believe that we can be part of Last year, the network delivered that catalyst for change…would you many hundreds of thousands of care to join us?”

Image taken before COVID-19 pandemic GLOBALFRANCHISEMAGAZINE.COM 87 PLAY BIGGER: How long-standing brands are evolving and reaping the benefits of the digital age

“Digital Evolution” doesn’t just mean AI and machine learning. By revamping bread and butter digital assets, brands can attract and retain customers, and stay current with the latest trends

or many brands, this year’s gradual return to ‘normal’ will be an F exciting prospect. A consumer boom could be in the cards, particularly for those within industries that were forced to largely shut down during the height of the pandemic. “When building a strong brand, To really ride this wave of success, franchises from every you need a strong foundation sector need to make sure that their online presence and and in today’s digital world, your digital footprint are of the highest possible quality. They website is that foundation” need to play bigger, by elevating not only their brand experience, but also the fundamental Tanner, senior VP of franchise the difference between them ways in which consumers can marketing at Scorpion. choosing you versus a competitor.” interact with the brand. “Over the last few years, websites have transitioned Refine media mixes Level-up the essentials from being a static source of By understanding shifts in One of the key mediums that information to interactive and consumer behavior and refining consumers use to engage with engaging platforms. You see this media mixes, franchises can a franchise brand is through its through functionality like online meet consumer expectations website. But as recent years have scheduling and ordering, real- for an omnichannel brand shown, simply maintaining a time chat agents, live menus and experience and avoid the misstep basic online presence isn’t nearly pricing, and in certain industries, of investing hefty sums into enough to compete. modules that allow you to areas that are overly competitive “A website is extremely upload pictures of your home to or don’t necessarily ensure the important for the overall success see various painting schemes, strongest ROI. and awareness of a brand. When window covering options, or “While it’s instinctual for building a strong brand, you furniture in your room. a franchise owner to invest need a strong foundation and in “This increased engagement marketing dollars heavily or today’s digital world, your website allows users to more quickly make even exclusively in lead-driver is that foundation,” says Eric decisions – and could even make spend to see an immediate

88 GLOBAL FRANCHISE | ISSUE 6.1 POWERED BY

EVOLVING ON A LEGACY

Founded in 1991, Wing Zone has firmly planted itself as a frontrunner legacy brand in the American restaurant scene. But until partnering with Scorpion, the quick-service favorite had no long-term online marketing plan, nor a dedicated digital strategy. To remedy this, Scorpion enacted a multi-channel approach to ensure consumers would be exposed to the Wing Zone brand wherever they might be spending time online. It used geo- targeting to market directly to consumers within 10 miles of their local Wing Zone location, and launched a combined effort of pay- per-click, Google map, and display advertising. As a result, Wing Zone experienced 25-27 per cent more customers at each location, 3.4 million online impressions, and over $112,000 in revenue at four pilot program locations, solely from online marketing. Not only that, but the Wing Zone corporate team was able to tap into data that could provide insights for the entire brand. “Getting new customers in the door, being able to track where they came from, how much they spent, and how they ordered...it’s a game-changer,” said Matt Friedman, co-founder of Wing Zone.

IMPROVE EXISTING CAMPAIGNS phone call or lead, such a singular strategy eventually loses to the With its heated indoor pools and world- savvy competitor who understands class instructors, Goldfish Swim School the importance of building brand had no problem attracting new customers. strength,” says Stephen Bess, VP of However, its online presence wasn’t franchise marketing, Scorpion. delivering how the brand had hoped – more signups were needed fast. “Strong brands are more easily A website redesign was undertaken by recognized online, more easily Scorpion, which involved researching and remembered to create customer mapping how customers used the previous loyalty, and more often chosen in the Goldfish site. The brand was generating search engine results pages (SERPs) plenty of leads, but only 10.2 per cent of compared to lesser-known brands. those were converted into memberships. As a bonus, increases in branded By adding more questions to signup searches help to lower overall lead forms, the brand saw a drop-off in form costs, making lead-driver spend even fills, but more than doubled the number of conversions, with the rate climbing to 25.4 more efficient. per cent. “Educate your owners on branding, This website refresh, combined with encourage them to incorporate focused advertising on channels like Google long-term brand-spend into their Search and Facebook, brought Goldfish marketing plans, and tangible results Swim School record-breaking numbers for are sure to follow.” its web-driven swim class enrollments. Instead of investing in unproven technology or peripheral channels, all it took was a renewed, in-depth look at the brand’s website and digital strategy. RAPID increased leads for franchise DEVELOPMENT locations, and saw the brand grow from six Unlike Wing Zone, Bloomin’ locations to 29 in just under Blinds did have an existing two years. digital plan before working Was this the result of a with Scorpion – they’d just complete online overhaul? experienced disappointing No – it was all thanks to a results from their previous ‘play bigger’ perspective partner. shift that Scorpion was Following a chance able to walk the Bloomin’ meeting between CEO Blinds team through. Kelsey Stuart and Scorpion Bloomin’ Blinds was already at a conference, the acquainted with SEO Bloomin’ Blinds story and paid advertising, but took on an entirely new diversifying other channels direction; one of growth along with developing and opportunity. A brand- more in-depth customer new franchisee-friendly targeting led to bigger website and more strategic results for both the brand advertising dramatically and its franchise owners.

GLOBALFRANCHISEMAGAZINE.COM 89 BEHIND THE BRAND: PARTNER CONTENT

FASTSIGNS AT A GLANCE FASTSIGNS INTERNATIONAL, begins 2021 INC.

Established: 1985 Number of franchised outlets: Over 740 stronger than Location of units: U.S. and Puerto Rico, U.K., Canada, Chile, Grand Cayman, the UAE, Malta, and Australia (where centers operate as SIGNWAVE) Investment range: ever – and Cobrand: $96,881 – $206,501 Conversion: $106,054 – $219,842 New center: $218,596 – $298,679 Minimum required capital: $80,000 Contact: [email protected] / ready to grow +1 (888) 285-5935 fastsigns.com

Ongoing support has allowed franchisees to WORLD-CLASS SUPPORT DURING survive and thrive UNPRECEDENTED TIMES Thanks to FASTSIGNS’ exceptional support team that worked around fter a year that left no business “At FASTSIGNS, our franchisees’ the clock to help the system unaffected, FASTSIGNS success comes first. When the succeed, even new franchisees were A remains at the top of its game pandemic began to impact our able to open in a timely manner – and ready to continue its industry, we fought to ensure during the pandemic. domination of the sign, graphics, and visual FASTSIGNS centers across the U.S. Kevin Leamon signed a franchise communications industry. could continue to operate, and we’ve agreement with FASTSIGNS in The award-winning franchise reported a continued to be by their side to help March 2020, and in July celebrated strong year of growth amid the pandemic, them every step of the way,” says the grand opening of his center in signing 31 franchise agreements to develop Mark Jameson, chief support and Springfield, Illinois. new, co-branded, and conversion centers development officer, FASTSIGNS “Looking back, I feel incredibly worldwide and opening 30 locations, International, Inc. “We’re incredibly lucky to have had my new business including the brand’s first center in the proud of how our franchisees up and running in just four months Dominican Republic. adapted to the changing climate by during such a challenging period. As Much of FASTSIGNS’ success in 2020 tapping into the diverse product a first-time franchisee, the support can be credited to centers being deemed range we offer so they could fulfill and guidance that FASTSIGNS essential businesses, allowing franchisees the unique needs of their customers. offered as I navigated this new to pivot their services to focus on what “Throughout the pandemic, endeavor helped the entire process matters most – serving their customers. our franchisees have continued run smoothly,” says Leamon. to manufacture critical signage, “Along the way, I had the plexiglass shields, and more to help opportunity to tap into the hospitals, local governments, and impressive network of existing businesses communicate important franchisees to discuss how they health and safety information and were adapting throughout the to protect communities. Their role pandemic and learned so many of being the go-to resource for invaluable tools that I could visual communications in their incorporate into my center. It was communities continues to grow motivating to hear how FASTSIGNS stronger every day. The growth centers could quickly pivot to meet and momentum we’ve experienced the needs of current events and is a true testament to the strong further position themselves as FASTSIGNS network, our brand’s the expert in the sign industry. ability to adapt systemwide, and the I’m thrilled to be part of this rising demand for signage.” dynamic brand.”

90 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - XxxxxxxxxxxFASTSIGNS GLOBALFRANCHISEMAGAZINE.COM 91 GLOBALFRANCHISEMAGAZINE.COM “I could not imagine what what imagine not “I could like been have would it the during operate to without pandemic the and FASTSIGNS of support of franchisees” network our support of FASTSIGNS and our network and our support of FASTSIGNS “While Chudoff. says of franchisees,” struggled small businesses so many we permanently, doors closed their or the first for $1m in revenue exceeded myself, in business for truly was time. I myself.” but not by

FASTSIGNS is particularly is particularly FASTSIGNS Chudoff, a FASTSIGNS Jeffrey itwhat “I could not imagine least 35 franchise agreements this agreements least 35 franchise such the U.S. across in markets year the Midwest,as Southern California, England, and along theNew Additionally, Corridor. Northeast its is focusing the company on the development NerdsToGo aiming to sell 30 franchises U.S., as part of its plans tonationwide in new presence the brand’s grow markets. and existing and on its co-brand focusing helpwhich programs, conversion add business owners existing or store to their a FASTSIGNS business to a their convert fully FASTSIGNS franchise. FASTSIGNS ofhas helped countless owners studios, print shops, photography shops, embroidery stores, camera product their diversify and more, lines and services to meet the signs, graphics, demand for growing visual communications. Bothand opportunity franchise the co-brand with can be started and conversion on the initial down $15,000 only fee. franchise Shade, New in Maple franchisee as theyears 30 spent over Jersey, of an independent sign shopowner his business converting before in franchise into a FASTSIGNS being a part of the credits He 2016. family FASTSIGNS his success in 2020. for to operate been like have would without theduring the pandemic

FASTSIGNS is aiming to sign at is aiming to FASTSIGNS Connectivity is more important is more Connectivity this to growing look forward “We “We are excited to officially to officially excited are “We has been franchising NerdsToGo Over the last year, the FASTSIGNS the FASTSIGNS year, the last Over business model has continued CREATING CREATING OPPORTUNITIES FOR NEW AND EXISTING ENTREPRENEURS The brand its resilience. to show but also is strong, emerged not only As in 2021. growth poised for is positioned to FASTSIGNS business a strong provide to ready people for opportunity the leap into franchising. make the pandemic drags on,the pandemic drags locations in 16 states. locations in 16 only COVID-19 with than ever working,accelerating remote online learning, and business require which – all of continuity security, networking, error-free video conferencing. and privacy, are systems functioning IT Poorly headache and productivity a huge and consumers for constraint needwho small businesses alike solutions. reliable franchiseeswith existing business the NerdsToGo and introducing of potential group a new to brand adds and customers,” franchisees value is to add goal “Our Monson. as to expandwell to the business as as a brand the NerdsToGo and grow standalone business.” To cap off an already successful already cap off an To parent Brands, Propelled year, made also of FASTSIGNS, company addition with the acquisition its first IT an emerging of NerdsToGo, to its portfolio. services brand, a growing NerdsToGo, welcome in the IT organization franchise family,” our services business, into of CEO Catherine Monson, says look forward “We Brands. Propelled this exciting lies ahead for what to the continued especially brand, NerdsToGo will benefit that growth and team franchisees, customers, members.” and is a part of theyears four for services IT and growing large with 26 franchise industry FASTSIGNS ACQUIRES ACQUIRES FASTSIGNS NERDSTOGO BEHIND THE BRAND: PARTNER CONTENT

World’s third- AT A GLANCE LITTLE CAESARS PIZZA

Established: largest pizza 1959 Location of units: Restaurants in 27 countries and territories worldwide Investment range: Starting at $350,000 Minimum required capital: $1.5m chain seeking (international franchising) $250,000 (U.S. franchising) Contact: Marc DaSilva, Vice President of International Development O +1 (313) 471-6639 | C +1 (313) 802-7411 franchisees [email protected] Craig Sherwood, Vice President of U.S. Development O +1 (313) 471-6942 Little Caesars is eager to work with entrepreneurial [email protected] international.littlecaesars.com multi-unit experts from around the world (international franchising) franchise.littlecaesars.com rom a single store to a household name and has been a global chain, Little named “Best Value in America” for 14 Caesars Pizza charted years in a row. 2 F a path to global success It is currently operating in 27 “We are seeing starting in 1959 when founders Mike countries and territories on four and Marian Ilitch opened their first continents with aggressive expansion an incredible restaurant in Michigan. plans to bring the iconic pizza brand By 1962 the brand began to more countries around the world amount of franchising, and by 1969, it went and to additional U.S. markets. international. Today, the brand growth in the is the third largest pizza chain in PERIOD OF the world1 and there’s no denying UNPRECEDENTED pizza category that Little Caesars Pizza is doing GROWTH something right. Known for its value, Little Caesars, bolstered by a today, which convenience and quality tasting dedicated team supporting its makes now an pizzas, Little Caesars has become franchisees around the globe, is excellent time for new franchisees to join Little Caesars Pizza”

currently experiencing one of its largest periods of domestic and international growth in its 60-plus year history. The brand has doubled its global presence in the last seven years. Most recently, the chain entered Colombia, Singapore, Peru and Chile. Later this year, new stores are set to open in Portugal, Russia and the United Kingdom. With an attractive business model, strong brand awareness and quality products, there are valuable growth opportunities for entrepreneurs all over the world.

92 GLOBAL FRANCHISE | ISSUE 6.1 Behind the Brand - Little Caesars Pizza

“We are honored to be named the A GREAT PRODUCT Best Food and Beverage franchise AT A GREAT PRICE by the Global Franchise Awards,” Through all the transformations, says Marc DaSilva, vice president of the top priority for Little Caesars international development. “Pizza is has steadfastly remained creating a beloved throughout the world and we great tasting product at an incredible are seeing an incredible amount of value. Pizza is made with quality growth in the pizza category today, ingredients including dough that is which makes now an excellent time made fresh in stores daily, sauce that for new franchisees to join Little is fresh-packed and never frozen, and Caesars Pizza. a signature blend of mozzarella and “Little Caesars stands apart Muenster cheeses. A simple menu because we offer great tasting pizza ensures the ability to provide quality at an amazing, everyday value in each products at a low cost, ready when and every market we operate in – and the customer arrives. that resonates with our customers. There is no doubt that Little We are so excited to work with new Caesars is an exceptionally high franchisees as we continue to expand growth company with decades of globally and to have the opportunity experience in the $145bn worldwide to serve more families.” pizza industry. Little Caesars is continually looking for franchise ALWAYS INNOVATING candidates with an entrepreneurial The chain has a strong commitment spirit and experience in multi-unit to technology and innovation, which restaurant and retail management to is one of the driving forces behind the further capitalize on the phenomenal incredible growth of Little Caesars. global opportunity of the brand. In 2004, the brand launched its The company is committed to Hot-N-Ready model, which allowed supporting its franchisees in all customers to walk in the door and necessary disciplines including pick up freshly made pizzas and side supply chain, marketing, training, items without waiting, and with no operations, and architecture. need to order in advance. Additionally, Little Caesars offers its And then, most recently in franchisees a variety of store layout 2018, the company introduced options – even those for areas with the next evolution of convenience small footprints – to ensure the with the revolutionary Reserve-N- concept works in their market. Ready system, which features the Little Caesars has achieved its breakthrough Pizza Portal pickup – rapid growth around the world the first heated, self-service mobile because of a great brand and its order pick-up station in the quick dedicated franchisees. As consumers’ service restaurant industry. affinity for pizza continues to grow Customers simply order and in the multi-billion-dollar pizza prepay using the Little Caesars app industry, Little Caesars is excited or website, then retrieve their order to expand into new markets with from a secured, heated compartment exceptional franchisees. in the Portal using a QR code or three-digit pin. The technology is currently in the United States, IDEAL INVESTOR PROFILE Canada, and Mexico – and will be rolling out to new international • INTERNATIONAL FRANCHISING: Minimum $1.5m net worth under an area markets later this year. development agreement with additional minimum requirements for liquid/cash assets. Minimums may vary depending upon the number of stores to be developed. Sufficient As if purchasing an affordable, liquid assets and capital to support an aggressive store development schedule while great tasting pizza at unmatched sustaining a strong advertising program value couldn’t be easier, Little Caesars launched its delivery service • U.S. FRANCHISING: Minimum $250,000 net worth and $100,000 liquid in the U.S. and Canada in partnership asset requirements with DoorDash in January 2020. • Demonstrated enthusiasm, drive, passion, and a proven record of success in the Now when customers order on restaurant/retail industry the Little Caesars app or website, • Comprehensive understanding of the trade area and real estate in the region to they can choose to have their order be developed • Dedicated, locally based, full-time support staff for developing the Little Caesars brand delivered straight to their doorstep • Multi-unit restaurant/retail management experience as owner and/or operator through a completely contactless experience. And, in true Little

Caesars fashion, the brand has 1. Third largest pizza chain in the world – based on net number of stores in 2020 captured the value niche in the 2 “Highest Rated Chain – Value for the Money” based on a nationwide survey of national quick-service restaurant customers conducted by Sandelman & Associates, 2007-2020. delivery market and is the lowest 3 Lowest price claim is based on the price, on a (U.S.) national basis, of an online delivered pizza order with all delivery fees for the top four (U.S.) 3 national pizza chains (excluding third party online sites). Comparison based on a large Little Caesars pizza, with up to five toppings, ordered from priced pizza delivered, guaranteed. LittleCaesars.com, and the other three (U.S.) national pizza chains’ comparable large pizza(s), sold at every day menu prices with all delivery fees. Delivery available from participating locations. Plus tax. For guarantee terms, visit www.information.littlecaesars.com/en-us/lowestpriceguarantee.

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How to continue to recruit franchisees despite disruption

Because a different world requires a fresh approach when recruiting franchisee prospects

WORDS BY HOWARD MCCORMICK

rom a business employer but this not being reflected lockdowns and overall impact of perspective, recruiting in the wage and benefits package COVID-19. For example, industries has been challenging on offer. This has resulted in a large such as online retail, digital F marketing and shipping have all for many different number of people wanting to work industries over the past year. With the for themselves. seen huge growth opening up new introduction of the furlough scheme, To utilize this change in attitude, opportunities in sectors that people redundancies and people being faced invest time and effort targeting and may not have considered working THE AUTHOR with the decision to leave stable jobs, sourcing prospects that are looking in before. Howard McCormick at a new career due to a change in Set up a strategy to is the franchise becoming a franchise owner has seemed like a rather large investment circumstances, as well as individuals reach these potential director of global franchisees logistics company to make for some individuals. looking at taking advantage of the through World Options. However, there have also been growth of certain sectors due to the He is head of all many new opportunities to find franchise operations fantastic talent that has arisen and is responsible due to the pandemic and companies for recruitment of have been able to continue to franchisees into grow their franchise network the business despite disruption. Utilize new opportunities When any business is faced with disruption, it is important to think quickly and open mindedly about what changes can be made to make the best out of the situation in hand. While the pandemic has meant many people have sadly lost their jobs or have had to change their roles, it has also allowed people to think about their career paths and consider new opportunities. For example, with a huge number of employees working from home, and enjoying increased flexibility, this has made more people consider what other opportunities they may have outside of their standard nine-to-five office-based position. We know from speaking with new franchise owners that the pandemic has brought into focus the discrepancies between earning a great deal of money for an

94 GLOBAL FRANCHISE | ISSUE 6.1 targeted marketing campaigns, within their network. This allows ensuring that your message and what prospects to get a full understanding “Set up a strategy you offer is delivered to people that of what goes into running a franchise you know would be a great fit for your and provides insight into what joining to reach potential franchise network. you may look like for them. This also means any questions or queries franchisees Enhanced interaction are answered by the best people: those Communication has been key for that are already working directly as a through targeted business success throughout the franchise owner within your business. pandemic. With face-to-face meetings Position your team as experts marketing campaigns” and interviews not being viable, it has in their fields and really use their commitment – both in terms of time been crucial for companies to shift skills to help potential and new or money. towards virtual methods of interaction recruits to understand the USPs of when it comes to their typical your business and what makes each Some key areas to highlight at one of these recruitment process. franchise offering successful. Now events would be: In order to attract and interest more than ever, it can feel daunting potential franchisee recruits, to dive into a owning a franchise or • The benefits of being a franchisee, organizations need to create leave an old position, so it’s essential including potential earnings interactions between individuals to provide recruits with as much help • Success stories from some of your that are interested in purchasing a and information as possible from current franchisees franchise and existing franchisees the very start while building strong • Improvements to your systems and relationships through technological advances that will assist solid communication. franchise owners Ensure that you offer all recruits • Sales tips for successful growth tailored information packs, including of franchises videos, case studies of current franchise owners and a step-by-step All of this information can be the difference breakdown of your joining process between someone opening a franchise with to give them a clear idea of the you, and choosing another business, so it’s opportunities that are available to important that you get yourself out there them. This makes the process more as much as possible. efficient for both you and the To summarize, it’s important to keep up franchisee and provides them to date with people’s needs and working with tangible assets to refer back attitudes and use this to your advantage to at a later date. when recruiting new franchisees. Don’t let disruption negatively impact your typical Make use of recruitment process, and think about how technology you can overcome challenges by offering One of the main things that has something new or targeting potential allowed businesses to navigate franchisees in a different way. their way through the pandemic, Any business looking to successfully especially with recruiting new recruit new franchisees should not franchisees, has been technology. underestimate the power of good Virtual interviews as well as virtual marketing, and should continue to events are great ways to continue to communicate with potential recruits by market your business and using technology. It’s never been more attract new franchisees. important to stand out, and there are many Not only is technology important for ways you can still do this as a business, delivering your marketing during the despite the current climate. recruitment process, but it also needs to be a consistent part of your offering. Franchisees need to know that you are FIVE WAYS FRANCHISORS CAN leading the way with your services, and ATTRACT MASTER FRANCHISEES innovative technology is a huge part of this. Think about what technology 1 Reach potential franchisees through targeted your company incorporates that marketing campaigns makes franchise owners' lives easier 2 Set up enhanced communication between existing, and be sure to promote this. The rise successful franchise owners and potential recruits 3 Provide in-depth information and insight into setting in virtual meeting software has made up a franchise with yourbusiness it easier than ever to hold virtual 4 Ensure your business offers advanced technology conferences, and invite potential that assists franchise owners franchisees. Without being limited by 5 Utilize virtual events and technology to promote location, you can invite a huge number your business and invite potential franchisees of interested parties to learn more as guests about your offering without a large

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5 minutes with... BRITT CANADY Novus Fitness Brands’ CEO on brand building, the importance of shared business principles, and the entrepreneurial beauty of franchising

GF: What does success look like planned. 2) Effective organizations business. Product or service creation, to you? welcome and respect differing planning the next product or service, BC: I believe success comes with opinions and backgrounds to achieve marketing, learning these items, two criteria: business success and common goals. 3) Trust is not given management of people and time, and personal success. Quite frankly, we but earned, through distinct vision, staying on top of the next innovation. cannot succeed on any level unless deliberation and willingness to act That is difficult for any business the franchisees can accomplish with conviction. owner, particularly a small business both. On the business front, our If you can build a team with these owner. We train our franchisees on goal was to deliver a product that shared principles, your organization the product and services, deliver it via resonated within the large and will be well positioned for growth. the best technology and weekly prep, growing fitness industry. That After that, the common points for provide top-level marketing ideas and success we have already achieved as all great companies are tied to the goals, and stay in front of changing we continue to attract fitness goers right product or service and the right trends. The business owner can use of all levels. Replicating that success time, and a very well planned and all of his energy on managing within with more studios and more interest executed strategy. the four walls and maximizing profits. is the next step in the business Franchising is quite literally one success front. of the most efficient ways to create Our personal success is to enjoy “Franchising is quite successful business owners. what we are doing and help others obtain otherwise unforeseen literally one of the GF: What advice or tips do you success. That is both for our have for entrepreneurs consumers and our many levels most efficient ways to looking to embark on a career of teammates. When we started create successful in franchising? this business, we believed that BC: The beauty of franchising is the the fitness industry did little to business owners” guard rails that help entrepreneurs provide big career opportunities focus on what makes them great, for the drivers of the industry: while the product, marketing and fitness professionals. What I GF: What most interests you processes are already built. enjoy the most is finding the best about franchising? Some individuals are going talent and telling them they have BC: Franchising may be perhaps one to succeed in any number of a future, either at the corporate of the greatest business inventions to businesses. Most people, however, level or growth opportunities in the spread value across as many people have the spirit, but lack the franchise network. as possible. It is fascinating to think conviction and select skills. about the fact that our achievement is My advice then is if GF: What are the vital driven by us helping others succeed. someone wishes to strike out on components behind a The creation of wealth for others is their own, franchising is an excellent well-run organization? the greatest measure of our success. choice to find an industry they love BC: I believe in three core Another interesting aspect of and look for guidance on the small principles: 1) Believe what you are franchising is the system itself. things, while they can focus on the doing is right, sound and carefully Imagine all the aspects of running a big things.

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