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Choose Pizza Global Why this sector succeeds Beware the Talent Drain Franchise Retaining your HR assets www.globalfranchisemagazine.com The World Is Yours If you follow these steps MASTER, REGIONAL AND INTERNATIONAL FRANCHISING SUBWAY MENTORING IN ACTION

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EXPANDING TO 10 MANDATES FOR EFFECTIVE CANADA? MARKETING Expert advice to ensure your success DOES EVERYONE KNOW YOUR NAME?

PAGE MARK PAGE BILL PAGE ANDRAE 12 JAMESON 20 EDWARDS 60 MARROCCO How FASTSIGNS Locations you Franchising in the reinvents the printshop never considered Great White North MARY BROWNS GATEFOLD ad_GLOBAL FRANCHISE 01/08/2019 17:25 Page 1

CONTENts HIGHLIGHTS Pizza: Set to Great White Franchise 26 keep rising? 09 North 60 where?? The pizza sector is What's stopping you Bill Edwards goes off flourishing. Isn't it time you took a from franchising in Canada? We look the beaten track in search of lesser slice of the action and made at the kind of reception you're likely known franchise destinations some dough? to receive

FRANCHISE 26 PIZZA: HOW TO MAKE 88 YOUR MASTER PLAN FOR OPPORTUNITIES SERIOUS DOUGH GOING GLOBAL All you need to grab a slice of the pie John Hayes offers his expertise 12 FASTSIGNS 33 10 MANDATES FOR 94 EXPOSURE A license to print money? EFFECTIVE MARKETING Useful upcoming franchising events Marketing costs money – get it right 18 SUBWAY 96 TALKING ABOUT Join a global hard-hitter 45 CANADA v USA THAT GENERATION Viva la difference, says Angela Coté Marketing to millennials 32 FIBRENEW Furniture restoration service 48 READY, FIRE, AIM Justin Livingston advises 43 HELEN DORON preparedness LEGAL EDUCATIONAL GROUP Children's tutoring 51 GF ONLINE Online with James Fell 20 5 MUST-DOS FOR 54 CHOUPETTE FRANCHISING IN CANADA High style for kids 52 4 STEPS TO CHOOSING Andrae Marrocco is your expert guide YOUR FRANCHISEE 56 SMOKES POUTINERIE Dan Bish shows you how Entertaining cult Canadian outfit to get it right INTERVIEW 72 SCHOOL OF ROCK 58 WHY CUT & PASTE WON'T DO Meet its driving force Sanjay Duggal on Gulf franchising 36 GLOBAL FRANCHISE 93 BODYSTREET 60 OFF THE BEATEN TRACK MEETS DAVID BARR Fitness franchise working out Have you considered IFA Chair speaks to Global Franchise these destinations? 70 5 MINUTES WITH RAY HAYS ADVICE AND INSIGHT 65 HOW TO Managing Partner, FranLaunch USA FRANCHISE IN FRANCE Making entry into France trės facile 9 CANADA 74 GOING UP IN THE WORLD SHOWS AND EVENTS Guide to franchising North Pick the right time to go international starts here 77 ARE YOU EXPERIENCED? 40 BE MY FRANCHISE 10 ARE YOU READY, CANADA? Is sector experience important? Turkey's top show previewed Are Canadian brands ready for international expansion? 81 MAKE IT HAPPEN ANYWHERE 71 YOUR ENTRY TO THE Tips for successful RUSSIAN MARKET 15 BEWARE THE TALENT DRAIN overseas expansion Moscow's high level franchise show How to retain your most @globalfranmag valuable assets 84 A CHILD'S GUIDE TO 95 FRANCHISE FRANCHISING EXPOSE CHICAGO Global Franchise 24 5 STEPS TO One brand prepares to go Mid–West hub show GREAT MENTORING Global Franchise international How Subway brings on magazine its franchisees

4 GLOBAL FRANCHISE | ISSUE 4.5 32 GLOBAL FRANCHISE | ISSUE 8.3

Contents&Eds.indd 4 02/08/2019 12:53 UPFRONT rogress is never achieved without P change and this magazine has seen a whole heap of changes over the last few years, changes which have, we like to think, brought improvement and created a magazine which better serves the international franchise community. People who ought to 09 know seem to think so, anyway– Global Franchise walked off with the 'Industry Contribution' award at the recent bfa/HSBC Franchise Awards. in Singapore as part of the GF team, he already has This has been a cause for much the contacts and will be hitting the ground running. celebration in these parts. You probably heard some In this, my final issue, you'll find all you need and of the ruckus where you are. Although we had never more to succeed in the pizza restaurant business. aimed towards that kind of recognition, we have a We look at how you can get franchisee selection sterling team here who have always fulfilled their right and consider your options for franchising off roles to the best of their ability and have worked the grid, i.e. establishing your brand in less obvious extraordinarily hard to create a magazine and web locations around the globe. And, importantly, this presence that has become an accepted resource for issue has a Canada theme going on, with good franchisors and master franchisees everywhere. And advice and information for those franchising in this we go on improving it. fascinating multi-cultural country and for those Last issue we brought you a bigger magazine planning on expanding North of the border. with a much changed look – we hope you liked it. Whatever your role in franchising, I hope you will This issue sees another change and that's a more found something of interest and more that is of use personal one. I'm vacating the editor's chair to in this unique journal. I'll take my leave now in the concentrate on other projects – but fear not, you sure and certain knowledge that this is a magazine, will be in very capable hands with new editor, a website, a video and podcasting system which is James Fell. James has recently been heading up only going to grow bigger, and better. Cheers! the burgeoning online side of Global Franchise, maintaining and much improving the website at www.globalfranchisemagazine.com, looking after Ross Gilfillan all matters digital and running the Global Franchise Editor, Global Franchise video department. Having already attended FLAsia [email protected]

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GROUP ADVERTISEMENT MANAGER ART DIRECTOR Lloyd Oxley Richard Davies 44 (0)1323 471291 | [email protected] DESIGNERS Adam Barford, Chris England, Luke Rogers SENIOR ACCOUNTS MANAGER CREDIT CONTROL Sue Carr 44 (0)1206 505903 Neil Phillips 44 (0)1323 471291 | [email protected] PUBLISHER Matthew Tudor ACCOUNT MANAGER Craig Bartlett 44 (0)1323 471291 | [email protected] Published by Aceville Publications Ltd EDITORIAL DIRECTOR (BUSINESS) The Boatshed, Sovereign Harbour, Emily Seddon | [email protected] Eastbourne, East Sussex, BN23 6JH. Printed in England EDITOR

ISSN 1744-6988 © Aceville Publications Ltd 04 EXPERT Ross Gilfillan | [email protected] 9 771744 698037 ADVICE * Brand profi les * Interviews * Industry trends What Franchise * Franchise directory £3.99 * VOLUME 14 ISSUE 4 www.what-franchise.com 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 FINANCIAL FOCUS PERFECT 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 Keeping accurate FIT accounting records is The transition from easier than you think HM Forces to franchisee 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 Smart Route to Business MULTI-UNIT 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 OWNERSHIP FRANCHISING The documents and The pros and cons of processes would-be expanding your business 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 franchisees need to be aware of 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 Getting the LATER LIFE DEAL DONE ENTREPRENEURS The mechanics of Life is far from over 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. selling your franchise once you hit 50 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 Stelios Haji-Ioannou The entrepreneur making franchise success easy 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 REDUNDANCY PAGE BEFORE PAGE KEYS TO | 32 GLOBAL14 VICTIM? FRANCHISE6 YOU INVEST 26 SUCCESS ISSUEwhether 8.3or not it is classified as “real time”, may have stopped being current by the time it reaches you. The views and opinions expressed in GlobalGLOBALFRANCHISEMAGAZINE.COM Franchise magazine are those of the author(s) and do 5 What a franchise could The questions to ask your Top tips for aspiring o er you prospective franchisor franchisees not necessarily reflect the views and opinions of Global Franchise magazine or staff.

Contents&Eds.indd 5 02/08/2019 11:59 More than 2,700 small businesses were surveyed by Guidant Financial and LendingClub to gather Trending Now these insights into franchisees and their businesses TOP 5 SMALL BUSINESS INDUSTRIES

HEALTH/ FOOD/ BUSINESS GENERAL HOME 1 BEAUTY/ 2 RESTAURANT 3 SERVICES 4 RETAIL 5 SERVICES FITNESS

Most Popular Total >$1m $500k- <$50k Financing Methods Acquistion $1m Cost

39% $375k- $500k 3% 11% 8%

8% $50k- 22% $100k

21%

14% 12%

$250k- $375k 6% 16% 5% 5% 21%

ROBS Cash SBA Line of Family & Unsecured $175k- $100k- Loan Credit Friends Loan $250k $175k EDUCATION

Millennials % 8% 79 Identify Gen X as male 30% Generations % 21 62% Identify as female Boomers

6 GLOBALFRANCHISE | ISSUE 4.5 GETTING Motivation for GLOBAL RIGHT opening a Business “A master Wanted to persue franchisee my own passion needs to be Ready to be 1 trained as a my own boss franchisee and 2 as a franchisor.” Dissatisfaction with corporate America Sarah Beattie, Fun Fest Holiday Club Opportunity 3 presented itself “Before deciding what kind of 4 Layed off/ franchise interests Job outsourced them, franchisees 5 need to perform a realistic self- top 6 challenges for assessment of small business owners their own skills and identify not just their professional strengths % Lack of capital/ and weaknesses, but their cash flow 24 personal ones as well.” % Recruiting/retention Matthew Jonas, TopFire Media 21 of employees % Marketing/ “Instead of 16 advertising seeing failure % Time as a negative, 12 management Americans look at failure as an Administrative work % (book keeping/payroll etc.) opportunity to 12 learn. Their % Managing/ providing benefits attitude is, try it. Did it work? 8 No? Okay, let’s move on and try

About Guidant Financial something else.” Headquartered in Bellevue, WA Guidant Financial helps business owners secure financing to start, buy or grow a business. An industry leader in business and Angela Cotè, Cultivate Advisors franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate and deploy customized financing solutions. guidantfinancial.com.

GLOBALFRANCHISEMAGAZINE.COM 7 GLOBAL FRANCHISE AUG ISSUE 24 master_GLOBAL FRANCHISE 01/08/2019 13:33 Page 8 ARE YOU READY, CANADA? The focus of this issue is franchising in the Great White North and finding out how ready are Canadian franchises to expand internationally

GLOBALFRANCHISEMAGAZINE.COM 9

Are you ready Canada? .indd 9 02/08/2019 12:40 ADVICECANADA

THE AUTHOR Edward (Ned) Levitt is a Certified Franchise Executive, a partner at Dickinson Wright LLP, Toronto, Canada, and provides legal services to Canadian and international clients on all aspects of Canadian franchise law. He was General Counsel to the Canadian Franchise Association (2000-2007) and is a member of the American Bar Association Forum on Franchising, the International Bar Association and WORDS BY EDWARD (NED) LEVITT the International Committee of the International Franchise Association. istorically, Canadian American franchises. the language and culture of Ned can be reached franchisors have not To be successful in Canada, foreign markets. at 416.646.3842 ventured into foreign given the diversity of the Quebec Also, international expansion or nlevitt@ H markets in great market and the immense geography, of Canadian franchise systems is dickinsonwright.com. numbers. When they have, it has a Canadian franchisor has to being facilitated by some of the TORONTO 99998- 1771 1621247v1. mostly been to the massive, develop many of the skills and same forces affecting franchisors franchise savvy, U.S. market, and resources common to international everywhere. The increase with very mixed results. However, expansions. Additionally, Canada is in global travel, exposure to times have changed. Today, we see seen by the rest of the world as very international media and the ability more international expansions from similar to the U.S. and as reflecting to communicate instantly on the Canadian franchisors, and more are American know-how, when it comes Internet are raising awareness of the expected in the future. So what's to business and franchising in products and services of Canadian causing this change? particular. franchises and allowing Canadian Many factors may explain this Another factor is the immigration franchisors to understand and shift in strategy. I believe the most laws of Canada, which have resulted connect with customers in foreign important are increased franchise in Canada becoming a very multi- markets more than every before. knowledge among Canadian cultural country with many strong Of course, expanding a franchisors; the growth of successful bonds with, and connections to, franchise system internationally franchise systems, both in number foreign markets. This also boosts is challenging. The risk of failure and size, and the steady increase in Canadian franchisors' access to is high and the risk of surviving demand around the world for North personnel who understand without really thriving is even

10 GLOBAL FRANCHISE | ISSUE 4.5

Are you ready Canada? .indd 10 02/08/2019 12:41 which countries to enter first. For example, the U.K. has no franchise- specific legislation, so registration and creation of franchise disclosure documents is not required. This saves time and money.

Branding and supply chains With the importance of brand in franchising, comes the need to ensure that the franchisor can legally secure and license its trademarks in the target market. As well, supply chains need to be established in the new market, which may require local suppliers or be import-based ones, all of which are determined or influenced by local laws.

Adapt documents to adhere to local laws Documentation, such as the franchise agreement and the franchise disclosure document, if required, will have to be adapted to comply with local laws. Even the operating manual needs a legal review and possible translation and the local tax laws, including such things as withholding taxes, should be evaluated. As a final caution, a Canadian franchisor will want to know that it can protect its system in the target market effectively and within manageable budgets. The franchisor’s Canadian legal counsel can and should have input into many of these and other areas at the earliest stage possible and before major decisions higher. Some of the most common faced with many business decisions are made and strategies created. reasons for failure are choosing when embarking on an international Finally, on the implementation the wrong master or multi-unit franchise expansion. Some of these side, Canadian counsel can be more franchisee, not having enough include: which markets to expand to helpful and effective for the franchisor financial resources to support the first and when; deciding on capital if they have a solid and extensive network of international legal firms master or multi-unit franchisee and human resources requirements; who are experienced and capable in properly and poor adaption of the and what adaptions should be made franchise expansions. business concept for the to the concept. The list goes on. The future is bright and full of local market. Importantly, many of these promise for Canadian franchisors For a franchisor to be successful business decisions are impacted by wishing to expand outside of Canada. in an international expansion, it the legal system of the target country. Success will breed success, as more is necessary to navigate and plan As such, they should be considered Canadian franchisors take the effectively. Below are some of my at the planning stage, not just at the plunge into foreign markets. While thoughts on the key legal and time of implementation. For example, caution, adequate resources and good business considerations for an when expanding into the U.S., less planning are essential for success, international franchise expansion. capital is needed if the first states the old adage of “nothing ventured; selected do not require registration nothing gained” is so very apt for Plan early and take into or do not have franchise-specific Canadian franchisors who have the account the local laws legislation. Franchisors have similar ambition and smarts to establish Not surprisingly, franchisors are considerations when deciding themselves in the world.

GLOBALFRANCHISEMAGAZINE.COM 11

Are you ready Canada? .indd 11 02/08/2019 12:41 BEHIND THE BRAND

AT A GLANCE FASTSIGNS INTERNATIONAL, Look Out INC. Established: 1985 Number of franchised outlets: Over 700 Canada, Location of units: U.S., Canada, England, Saudi Arabia, UAE, Grand Cayman, Mexico, Chile, and Australia Investment range: Here Comes • Cobrand: $84,268 – $209,583 • Conversion: $95,897 – $212,648 • New center: $197,172 – $313,136 Minimum required capital: FASTSIGNS $80,000 Contact: [email protected] / 214-346-5679 FASTSIGNS International, Inc has already brought its www.fastsigns.com custom graphics business to Canada. It’s now seeking joining FASTSIGNS. dynamic franchisees and master to expand further in Last year, FASTSIGNS opened a the Great White North record number of centers in Canada and recently signed two franchise development agreements to open s long as businesses operated centers in nine countries new locations in Toronto in 2019. need to be seen, — offers entrepreneurs and current FASTSIGNS expects to sign two to FASTSIGNS business owners an opportunity to three more agreements in Canada A this year and is actively seeking International, Inc. meet a growing demand for eye- prospective franchisees throughout and its franchisees will be there to catching graphics and marketing the country, including a Master meet the demand by businesses through franchising. Franchisee to develop in Québec. throughout Canada for captivating, Currently, Canada is home to “We see a huge opportunity to high-performing visuals. over 30 FASTSIGNS locations, develop FASTSIGNS throughout but the brand is growing rapidly FASTSIGNS — the leading Québec, particularly in Montreal, sign and visual communications as entrepreneurs realize the Laval, and Québec City,” said Mark franchisor in North America and opportunity to feed the demand Jameson, EVP of Franchise Support the worldwide franchisor of more for comprehensive signage and and Development, FASTSIGNS than 700 independently-owned and visual communications solutions by International, Inc. “We’re seeking a savvy entrepreneur with deep ties to Québec and the expertise required to not only operate a successful business, but also to grow a brand throughout the province.”

THE FRANCHISEES’ CHOICE FOR SEVEN YEARS AND COUNTING Much of FASTSIGNS success in Canada can be attributed to its high level of franchisee satisfaction. This year the brand was once again recognized by the Canadian Franchise Association (CFA) as a silver recipient of the 2019 Franchisees’ Choice Designation. This was the seventh consecutive year FASTSIGNS has been recognized for its strong relationship with Canadian

12 GLOBALFRANCHISE | ISSUE 4.5 Behind the Brand - FASTSIGNS International, Inc.

franchisees, as well as for providing extensive franchisee support and training. FASTSIGNS touts its high system-wide support ratio — the best of any sign and graphics franchise. As the brand grows throughout Canada, it continues to allocate significant resources to ensuring franchisees have access to top-notch training and support. “We pride ourselves on our high level of franchisee satisfaction in every country we operate in around the world and were honored to be recognized once again by the Canadian Franchise Association for this prestigious designation,” said Neither Bilodeau nor Raymond qualms about calling the corporate Jameson “We continue to nurture had experience as business owners office to ask questions. the strong franchisor-franchisee when they joined FASTSIGNS, “Yes, it is our own business. We relationship that is so crucial to but they leveraged their unique make the final decision, but they FASTSIGNS’ success in Canada.” backgrounds and experience to are our sounding board if we need Craig Gibbs, a franchisee that become successful franchisees. something,” said Raymond, who opened a FASTSIGNS center in Bilodeau, the daughter of a previously worked for another Scarborough, Ontario, in 2007, is an member of the Canadian Armed local franchise in the print advocate for the brand. Forces, lived all over the world, industry. “Nothing compares to the learning to adapt to new FASTSIGNS corporate help.” “As the brand grows situations and make new friends easily. Raymond CONTINUED throughout Canada, it was born to a French- DEVELOPMENT Canadian family and, WORLDWIDE continues to allocate after high school, got FASTSIGNS has signed several a job at a local French master franchisee agreements in significant resources to newspaper where her recent years, including in Spain ensuring franchisees interest in creative where existing FASTSIGNS graphic design grew. franchisee Chris Kirby plans have access to top-notch “Everything was to develop a minimum of 10 finalized in July 2000 locations, specifically targeting training and support” and we drove down to initial development in Barcelona, Dallas for a three-week Madrid, Valencia, and Malaga, “I’ve been with FASTSIGNS for franchisee training program. We while new master franchisee, the more than 12 years, and the support spent the entire month there, Famalco Group will open 16 centers I’ve received from the franchisor, returned to Windsor and opened throughout Malta, Italy, and Greece. in many aspects of my business, is the doors to our FASTSIGNS FASTSIGNS is continuing to fantastic. From strategic direction center on Aug. 1,” Raymond told grow worldwide with a focus on to marketing, along with vendor Canadian Business Franchise in finding master franchisees for relations, technology, and more, the 2017. “It was an intense few weeks, Québec, New Zealand, Brazil, tools and resources provided have but training was great. It was North Africa, Southeast Asia, India, continuously contributed to my split into units. I went through Europe, and Latin America. center’s ongoing growth,” Gibbs said. the graphic design modules and “FASTSIGNS’ business model Donna focused on the sales and is focused on providing custom EXTENSIVE TRAINING management ones. This way, marketing and graphics solutions & SUPPORT we’d be able to come back and for local businesses, so franchisees After years of dreaming and use everything we learned and that operate centers anywhere in the talking about owning a business implement it into the business. world are well-positioned to serve together, FASTSIGNS franchisees Plus, we were playing to our the countless organizations right Donna Bilodeau and Jackie previous experience and strengths. in their backyard,” Jameson added. Raymond made the leap from It was a great decision.” “Whether a new center, conversion, friends to business partners in After nearly 20 years in business, or co-brand, FASTSIGNS 2000 when they opened a center FASTSIGNS Windsor continues franchisees continue to experience in Windsor, Ontario. to thrive. Even today, they have no strong sales and growth.”

GLOBALFRANCHISEMAGAZINE.COM 13 GLOBAL FRANCHISE 4_5 ISSUE 24 master_GLOBAL FRANCHISE 02/08/2019 10:17 Page 14 INSIGHT

Beware the talent drain New employee satisfaction research in the franchise sector reveals threats and opportunities around compensation and retention

WORDS BY ERIC STITES

hat’s the price tag Franchise Business Review, in Results of the survey were on the loss of a partnership with the International also used to determine the top W valued employee? Franchise Association (IFA), franchises for employees based on Estimates vary from conducted the Franchising@ responses from their employees tens of thousands of dollars to WORK Employee Engagement themselves in five key areas: one and half to two times the and Compensation Benchmark “Best Culture”, “Best Boss” (aka THE AUTHOR employee’s annual salary, to up Study* in late 2018 to identify Management), “Best Leadership”, Eric Stites is CEO and to 213% of the cost of one year’s trends in employee satisfaction “Best Compensation & Benefits”, Managing Director of compensation for that role. and engagement in the franchise and “Best Overall Satisfaction”. Franchise Business Aside from the actual cost sector, as well as identify best Review (FBR), an independent research of recruiting and training a practices from brands that are What the survey revealed and consulting firm replacement, there are intangibles leading the way when it comes to The good news is overall employee specializing in fran- – the “brain drain” of institutional employee satisfaction. satisfaction is high. 90% of chisee and employee corporate franchise employees satisfaction and anal- ysis. Eric leads FBR’s rated their job as “rewarding & research and consult- satisfying”, with 56% responding ants with clients in “strongly agree” and another 34% the area of franchise responding “agree”. performance. He is However, there is still work an active member of the International to be done. Lowest-rated areas Franchise Association of the survey were around (IFA), serves on the fair compensation, long-term IFA’s VetFran and opportunity, communication, Franchise Relations Committees, and recognition and support. speaks frequently on topics related to Key findings: franchise relations • 90% of corporate franchise and best practices employees find their jobs and in franchising. the work they do rewarding and satisfying. • 85% of respondents feel that their ideas and feedback are valued by their managers.

knowledge, project disruptions and The study was open to all delays, and the psychological toll on corporate franchise employees – “90% of the team. Not to mention, companies both in the corporate office and front with engaged employees—those line employees in corporate-owned corporate who are invested in the overall franchise locations. More than success of the organization – have 1,350 employees representing over franchise happier customers. 250 franchise brands shared their In today’s 'employees market', opinions and feedback. Participants employees find talent is more scarce than ever. were asked 24 core benchmark their jobs and Many franchisors and franchisees questions related to job satisfaction, are struggling with recruiting and engagement, management, brand the work they retention, trying to balance the need leadership and culture, as well as for competitive compensation and detailed personal questions about do rewarding benefits, with rising costs in many their position, compensation, other areas of the business. benefits, and demographics. and satisfying”

GLOBALFRANCHISEMAGAZINE.COM 15 INSIGHT

• Nearly a third of all franchise full 34% more on average than What franchisors can do employees (29%) don’t feel female managers. to recruit and retain they receive the recognition • Gen Z employees (under the Turnover is no longer just a cost they deserve. age of 25) had by far the lowest of doing business – it’s a serious • Two in five franchise satisfaction and engagement threat to growth in a highly employees (41%) feel they scores in the survey, scoring 10% competitive market. Fortunately, are under compensated. to 33% below benchmark. there are some relatively easy ways • Women in franchising earn less • Customer-facing employees to make an impact. than their male counterparts, are least satisfied, with 59% with the greatest gender pay indicating they did not see a Benchmark gap at mid-level management long-term opportunity with their your system where male managers earn a current company. 1 The only real way to identify your biggest areas for risk – and *download the full report at: opportunity – is to measure https://rebrand.ly/ employee satisfaction within your FranchisingAtWork system and benchmark it against other franchises. Michelle Kemplay, Director of Human Resources at Jason’s Deli, explains, “We partnered with Franchise Business Review in 2018 to administer our surveys two times per year. When we receive the results, the expectation is to dig in, analyze the data and then act on it. We celebrate the wins and create a plan of action for the opportunities. The expectation is improvement over the last survey. Our turnover is far less than the industry both on the hourly employee side as well as management.”

Consider the next generation of leaders 2 Sixty-seven percent of Gen Z employees said on the survey that they plan to leave their company within two years. That’s an alarming number considering the time and effort spent training them to advance within your organization – not to mention the cost to replace them. Generally speaking, Gen Zs are “Women in purpose-driven, multi-taskers, and impatient with the status franchising earn quo. They have a strong desire for cross-functional opportunities less than their male and a clear path to advancement. Brands can create a significant counterparts, with recruitment advantage if they the greatest gender capitalize on adapting their training and career opportunities pay gap at mid-level for Gen Z employees. management”

16 GLOBAL FRANCHISE | ISSUE 4.5 Examine your Gordon Logan, CEO of Sport Clips, are well-defined. They are embedded compensation says, “We hold quarterly pep rallies in every aspect of how we work and 3 structure where we recognize achievements by make decisions. So it is not so much individuals and teams; certificates of a matter of talking about culture The Pew Research Center in 2018 found that, in general, women accomplishment; small trophies for as it is about demonstrating the earned 85% of what men earned. many milestones and larger ones for aspects of our culture that we wish Similarly, the Franchising@WORK major accomplishments. We publish to reinforce.” study shows women’s franchise a weekly newsletter recognizing Dustin Hansen, CEO of InXpress salaries to be lower than their exceptional performance and positive Americas, added that you can’t really male counterparts with similar client feedback via our surveys. Our manage culture, but rather influence experience at nearly every level of national convention is heavy with it. “It starts with me, acting the way the franchise organization. recognition for individuals and teams I expect others to act and hiring the The data also shows that women – everyone likes to be recognized people that fit our culture. If either are underrepresented in senior among their peers.” of those slack, we’re doomed.” leadership roles within franchising. While they are overall more positive Define your culture Next steps for building (3%) than men in rating the and core values. employee engagement performance of their managers, they 5 While money is typically one The results of the Franchising@ are less positive (-5%) about the of the reasons cited by employees WORK study clearly show that long-term career prospects at their for leaving a company, it’s usually there are significant risks when it current company, which could have not the only one. There are equally, comes to employee engagement something to do with the perception if not more, important factors that within franchise organizations. of few opportunities for leadership. contribute to employees seeking Fortunately, there are many opportunities elsewhere. Now, more programs franchisors can put in Implement a system than ever, cultural fit is a must-have place at a nominal cost to mitigate for meaningful for employees. those risks and move the needle. 4 recognition Creating a positive culture doesn’t The organizations that make just mean free snacks, ping pong employee engagement a priority Based on our research, employee recognition is equally, if not more tables, or yoga classes at work. will reap the benefits of more important, than compensation. It’s having a defined set of core satisfied employees, which in turn Saying thankyou can go a long values that guides everyone in the will results in happier franchisees, way – and it doesn’t have to cost organization, communicating them and ultimately, happier customers. you anything. Public recognition clearly, and setting the expectation Research for the 2020 by leadership for a job well-done, for how your mission guides day-to- Franchising@WORK study will peer recognition programs, or day work and behaviors. open this fall. All corporate franchise fun awards for non-work-related Don Fox, CEO of Firehouse Subs, employees are invited to register to contributions can all help employees put it this way: “The ideals and participate at https://rebrand.ly/ feel appreciated and more satisfied. behaviors that comprise our culture FranAtWorkSurvey

GLOBALFRANCHISEMAGAZINE.COM 17 BEHIND THE BRAND

AT A GLANCE SUBWAY

Established: 1965 Subway: Serving Number of franchised outlets: 42,000+ Location of units: In more than 110 countries Communities Investment range: $140,050 to $342,400 Minimum required capital: Suggested 50% in cash Contact: [email protected] For Subway®, one ingredient remains the same: the 203 877 4281 or 800 888 4848 human ingredient. Subway Franchise owners are ideal www.subway.com representatives of the Franchise industry that people look at me and realize if I can do it coming from nothing, hen Subway fans think restaurants are owned by husband then they can do it.” about Subway they and wife teams, by second and That I-can-do-it mentality has W may first think about third generations, by young driven Haggarty through her life. their favorite sandwich entrepreneurs and by strong, As a single, teenage mother, she made just the way they want it at independent business women. worked multiple jobs to put food their local restaurant. But, behind Through their restaurants, on the table for her and her son. every Subway sandwich is an they serve millions of meals “People always used to say, ‘You’ll independent restaurant owner who to their guests each day. They never be anyone. You will always be is an entrepreneur, neighbor and create thousands of jobs in their a statistic,’” she recalls. “I knew that important member of their communities and, perhaps more I had to make it out if I wanted my local community. importantly, they represent son and myself to survive.” The diverse background of the power of possibility and Haggerty earned a spot with Subway franchise owners spans determination. the police department where she’s the globe to the tune of more than been protecting and serving her 21,000 Franchise Owners. They KIESHA HAGGARTY community for 20 years now, but was drawn to Subway as she drove come from different backgrounds, ”Failure has never been an option by a variety of restaurant choices for speak different languages but share for me,” says Kiesha Haggarty, lunch. “I’d go to Subway every day. one thing in common- they embrace Subway Franchise Owner from Eating right — Subway allowed me the core values of Subway: family, Oakland, Calif. “I’ve always said if to do that,” she says. “I was sitting community and opportunity. someone else has done it before, there [at Subway] eating lunch one then I can definitely do it. I hope Today, the more than 40,000 day, and I was looking around and thought, I can do this.” Haggerty, like so many Franchise Owners, recognized the opportunities that came with owning a restaurant and the support that comes with investing in a franchised brand, such as Subway’s recent $80 million investment to refresh U.S. restaurants, an additional renovation grant program, shared marketing support, training and more. She immediately took the first step to open her first Subway restaurant. Opening her first Subway restaurant was an opportunity for Haggarty to continue serving her community. She alternates shifts

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Subway .indd 18 02/08/2019 16:10 Behind the Brand - XxxxxxxxxxxBodystreet 02/08/2019 16:10

GLOBALFRANCHISEMAGAZINE.COM 19 GLOBALFRANCHISEMAGAZINE.COM Subway is building one “Team is building one “Team Subway We are constantly working constantly working are We learn more. Subway” supports that and learns it’s their words, In from each other. because “together we thrive, and job neverthat ends.” the world, there are unique unique are the world, there stories about every local Subway Visit subculture. restaurant. offer the more. to learn subway.com learnings. latest Subway” to build one “Team supportsthat and learns from we because together each other, thrive. That job never ends. Visit to subculture.subway.com

Driven by a vision created by by Driven by a vision created two are Haggarty and Musa Kiesha Haggarty (left) and Kareemaa Musas (right) Musas Kareemaa Agent and fellow Franchise Owner. Owner. and fellow Franchise Agent and her team used their Pancholi through experience to coach Musa her to organize the best way and the tools, restaurant equipment and organization needed to succeed. has her and her husband, Musa moved forward to bring her dream into restaurant to owning a Subway for her family. reality examples of the 21,000 Subway who come from franchisees to become diverse backgrounds serving and working entrepreneurs Around in their community. From design to construction From Guiding and coaching her along Sadly, tragedy struck: Hamid died died struck: Hamid tragedy Sadly, “People come in looking for us, in looking for us, come “People “We offer offer “We numerous tools to owners to help them achieve restaurant excellence” purchased their Subway restaurant restaurant their Subway purchased decided At a loss, Musa in 2017. ahead with with her daughters to go in restaurant opening their Subway girls “I want to show my his honor. if you want something, you should do everything to succeed.” you can was opening, Musa to the grand every at involved to step of the way bring her vision for the restaurant the empty weeks later, to life. Four into was transformed storefront Then the restaurant. a Subway opening for the grand preparation took place. was Rachana Pancholi, the way her local Business Development KAREEMAA MUSA a Subway Musa, Kareemaa Owner in the U.K., Franchise is a seasoned business owner adversity who has also overcome is new to the to succeed. Musa game, but knows franchising the keys to running a successful business thanks to her time owning with her store a convenience which they sold in husband, Hamid, reflected,“we wanted to Musa 2014. be part brand.” of a bigger shortly after the couple formally between serving the community officer and servingas a police her while food, guests with craveable local job opportunities. creating them make talking to us, and we “They she says. comfortable,” come back because they the like and they the like atmosphere people. When customers in, come they see me, they name, know my and I know their name.” Subway .indd 19 LEGAL

5 Must-Dos for Franchising in Canada

Canada is becoming increasingly attractive for brands looking for an English (and French) speaking market. Franchise attorney Andrae Marrocco prepares you for an adventure to the Great White North

WORDS BY ANDRAE J. MARROCCO

anada, much Protect your significant transformation as part heralded as a frozen intellectual property of an initiative to modernize the C hockey rink, has 1 A franchise system's national intellectual property turned out to be a framework. In addition to intellectual property is often the hot market for franchisors. most important asset crossing substantial amendments to the Canada has a highly skilled the border on any international Trademarks Act (Canada), the and educated workforce and a expansion, and the same holds regulations, and Trademark similar spending pattern to the true when venturing into Canada. Office practices, Canada is joining United States. It has the second This includes trademarks, know- three international trademark largest franchise industry in the how, trade secrets, copyright, and treaties. Not only is Canada finally world, behind the US, with an patents, as well as non-traditional acceding to the Madrid Protocol, estimated 1,300 franchise brands types of intellectual property like the international system for and more than 78,000 franchised domain names – both existing obtaining trademark registrations business units. It is also a proudly and contemplated (eg “.ca” for multiple jurisdictions through multicultural country, making it domain extensions). Franchisors the use of a single application, but a good ‘first expansion’ venue to should take the time to identify Canada is also joining the Nice test your franchise system among a the intellectual property that Agreement, which establishes variety of cultural demographics. is actually necessary for their an international classification However, franchise expansion international expansion into system for goods and services in to the Great White North requires Canada and robustly protect each trademark registrations, as well guidance and careful decision- category of intellectual property as the Singapore Treaty, which making. Here are five things to under Canadian law. seeks to harmonize administrative consider before expanding your Canada’s trademark registration procedures pertaining to the franchise system into Canada. system recently underwent a trademark registration process.

20 GLOBAL FRANCHISE | ISSUE 4.5 significantly different than other “Though Canada is the second countries in which your franchise systems operate. Though Canada largest country in the world, the is the second largest country in the world, the vast majority of its vast majority of its population population lives within 300km of its southern border. Carving up the lives within 300km of its 10 provinces and three territories southern border” into workable franchise regions requires strategy and consideration. Importantly, franchisors are Structure your tax laws and Canadian tax laws, and cautioned not to give away too much franchise expansion Canadian laws that may be applicable territory without protective rights 2 Determining the right because of your specific industry. (eg in circumstances of breach or

structure for your franchise underperformance). expansion into Canada is a Craft your International franchisors should critical part of early planning franchise agreement also observe current trends to ensure and, unfortunately, too frequently 3 Well-crafted franchise their brand holds strong appeal overlooked (particularly at the agreements underpin effective among prospective franchisees. strategy stage). Franchisors need expansion into Canada. Particularly In Canada, there has been an to address the following two where you have an existing suite of increased trend of franchise systems structuring considerations. franchise agreements and where providing franchisees with limited The first is selecting one or more you intend to utilize a number of flexibility on various activities that strategically advantageous franchise franchise structures, the preparation were historically more stringently structures for the expansion (eg, of a uniform and “Canadianized” controlled. For example, an master franchise, area development, set of franchise agreements is high increasing number of Canadian direct franchising, etc) and the on the priority list. Canadian courts franchisors are giving franchisees particular regions for which those have provided guidance on many latitude to source local products and structures will be utilized. More aspects of the franchise arrangement. services. This benefits international often than not, this involves blending The form and substance of drafting franchisors in a number of ways structures and crafting customized Canadian agreements has been including saving them time and terms that fit the specific franchise impacted in a profound manner by effort on establishing supply chains, system and expansion mandate. It the principles espoused by court as well as creating supply chain also requires conducting research decisions together with Canadian options for other franchisees. on the demand for your products legal custom which has developed From the franchisee’s perspective, or services in various regions while from those principles (and it engenders goodwill in the also considering other economic, independent of them). Observing community in which its franchised demographic and cultural variables. those principles and legal customs business operates. By way of example, you may will go a long way to protecting your These are but a few illustrations of determine that direct franchising franchise system in Canada. the importance of “Canadianizing” is the structure of choice for major Certain key mechanisms in your franchise agreements (and the regions like Toronto and/or Ontario, your franchise agreements such as underlying business terms) so that but a master arrangement is more “protected” or “exclusive” territory your franchise system is relevant for suitable for the province of Quebec should be carefully reviewed for the Canadian business community (which has a civil law system and Canada. The manner in which and complies with Canadian legal French language requirements). you ultimately define and divide principles and customs. The second structuring territories in Canada may be consideration is selecting the most efficient Canadian corporate/tax structure to achieve your business objectives. Franchisors need tailored advice to ensure that they identify a structure that satisfies the “line of best fit” test. The analysis is typically based on a number of considerations including capitalization strategies, contemplated on the ground operations (eg employees and physical premises), the intention vis-à-vis repatriation of funds, the interplay between home jurisdiction

GLOBALFRANCHISEMAGAZINE.COM 21 LEGAL

Comply with Canadian laws require the following • the integration between the Canadian laws implicit and explicit accountability franchisor and franchisee, 4 Six of Canada’s provinces and security obligations: including common shareholders (Alberta, British Columbia, or directors; Manitoba, New Brunswick, Ontario, • businesses are responsible • the payment of wages to the and Prince Edward Island) have for personal information in employee by the franchisor and/ franchise-specific legislation. While their possession or under their or franchisee; not identical, the provincial statutes control and must designate an • existence of an employment are substantially similar. One of the individual or individuals who are contract between the employee primary requirements mandated accountable for compliance; and and the franchisor and/or by each statute is that franchisors • security safeguards must protect franchisee; and provide pre-sale disclosure with personal information against loss • the employee’s relationship with respect to the franchise offering in or theft, as well as unauthorized and service to the franchisor and/ the form of a franchise disclosure access, disclosure, copying, use, or franchisee. document. The franchise disclosure or modification, regardless of document is intended to provide the format in which it is held (the On the other side of the prospective franchisees with nature of the safeguards will vary spectrum, a disinterested or sufficient information to make depending on the sensitivity of neglectful franchisor may wind an informed business decision the information that has been up being liable on that count. One about becoming a franchisee. collected, the amount, distribution, example comes from the Dunkin’ Consequences for non-compliance and format of the information, Donuts case heard by the Quebec with the franchise statutes (whether and the method of storage). Court of Appeal (2015 QCCA as a result of omitting prescribed 624). The worldwide donut chain information, failing to follow the In a landscape of ever-increasing Dunkin’ Donuts faced a serious execution and delivery obligations, privacy law regulation and scrutiny intrusion into its stronghold over or otherwise) can result in serious in Canada, it is imperative that the Quebec market by rival brand pecuniary consequences for international franchisors develop Tim Hortons. The Court held international franchisors. and implement adequate policies that Dunkin’ Donuts failed to Unsurprisingly, there are other and programs from the outset protect and improve the brand’s Canadian laws that international to ensure that their franchise image and value amidst this franchisors should be mindful of in operations in Canada safeguard competition, resulting in damages expanding their franchise system to personal information in compliance of approximately 11 million dollars. Canada. Firstly, it is worth noting with applicable legal and Among other things, the Court that even provinces without specific regulatory requirements. held that Dunkin’ Donuts failed franchise legislation have laws that to appropriately address poorly significantly impact the expansion Know when to be performing franchisees who were and operation of franchised hands on versus harming the brand image. businesses, such as Quebec’s 5 hands off Prudent international Civil Code and Charter of the As in many parts of the world, franchisors looking to expand French Language (which includes franchisors operating in Canada their franchise systems into requirements of ‘doing business’ in are experiencing the expanding Canada should take time to plan, the French language). Depending boundaries of vicarious liability. protect their brand, consider the on your intentions with respect That includes the much publicized optimum structure, prepare best to scouting out and operating in “joint employer” risks (“common in class documentation and, in all Canada, immigration laws will employer” in Canada). Accordingly, things, ensure they comply with all impact any personnel you plan on franchisors must strike the right applicable Canadian laws. This will having visit/move to Canada. You balance of protecting their brand put them on a strong footing for may also need to consider trade and assisting their franchisees effective and efficient expansion. and custom laws for product and without crossing the line of being so equipment importation, taxes involved that they assume liability. (including withholdings tax), For the purposes of common THE AUTHOR employment laws (which differ employment, the fundamental Andrae J. Marrocco is an international franchise question is where does “effective lawyer who specializes in franchise & distribution between the provinces), and arrangements and corporate M&A transactions. industry specific laws. control” over employees reside: He is a partner in the Business Law Group and Co- Moreover, Canada has a complex the franchisor, the franchisee or Chair of the Franchise and Distribution Law Group framework with respect to privacy both? The more control exerted by in the Toronto office of McMillan LLP. He frequent- the franchisor, the more likely that ly presents and writes on behalf of international franchise events and pub- and data protection. Maintaining lications. Andrae is a “Certified Franchise Executive” and recognized by nu- robust data protection and the franchisor will be found to be merous ranking publications including: Who’s Who Legal: Franchise, Who’s privacy protocols is critical to the a common employer. In addition Who Legal: Canada, Best Lawyers in Canada, The Canadian Legal Lexpert development and reputation of to the degree of control exercised, Directory and the Lexpert Guide to the Leading US/Canada Cross-Border international franchise systems other factors suggesting a common Corporate Lawyers. Andrae can be reached at: andrae.marrocco@mcmillan. ca | 416 454 2244 | andraejmarrocco.com entering Canada. At a high level, employer relationship include:

22 GLOBAL FRANCHISE | ISSUE 4.5 WHY WE’RE SPONSORING The Global AWARDS 2020 Franchise “MSA Awards 2020 Worldwide is The Global Franchise Awards recognize a job well done proud to have and inspire and educate others, say Awards sponsor, been invited MSA Worldwide to sponsor

Successful franchise expansion both those who franchise in their the Global into international markets can domestic market and those who Franchise add prestige to a brand and have only wish to franchise outside a positive impact on a company’s their home market, to review their Awards 2020” bottom line. However, achieving readiness to expand into new global successful expansion requires markets and to develop a pro-active THE AUTHORS proper planning, sufficient international expansion strategy. Michael Seid and Kay allocation of both financial and Our experience as consultants Ainsley, Managing people resources, and a long- has demonstrated time and again Directors, MSA term commitment to building Worldwide that the most critical decision and supporting markets with a franchisor makes is who they different business and cultural select as their franchisee. We requirements. Not all franchisors work with our clients to create a are able to achieve a high level of profile of their ideal franchisee for success. Those that do, contribute each market and then structure a to the continued acceptance and win-win arrangement for moving effectiveness of franchising around forward. Often, the support the world. programs that have propelled a MSA Worldwide is proud to have franchisor to success in their home been invited to sponsor the Global market will not be adequate in a Franchise Awards 2020 which new market. We help them to tailor recognizes those franchisors who the changes in their product or have achieved success by developing service, supply chain requirements, and implementing strong franchise marketing, promotion, public programs for international markets. relations and social media We firmly believe in franchising as a business model and the value programs, and to adapt to cultural that it provides for the franchisor, and business norms. the franchisee and the market as a As a Global Franchise Awards whole. We also believe that these judge in 2019 we appreciate all the awards are important, because work Global Franchise magazine by recognizing and rewarding does to promote the contest and those who make the investment to solicit and organize the entries and expand smartly and correctly we would like to say thank you to the can raise the bar for international magazine’s staff for all your efforts. franchising. These Awards will We would also like to say thank you encourage others to follow the to this year’s judges for generously leaders and build or strengthen donating their time and also the their own franchise programs, thus companies who took the time and helping to protect the franchise effort to put together their entry. model for all. We hope that you found the exercise in reviewing your international International expansion program worthwhile and we wish We have assisted our clients, you the best of luck.

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GF AWARDS.indd 23 02/08/2019 12:42 INSIGHT 5 Steps to Great Mentoring

Effective mentoring of new franchisees is an essential factor in the success of any new location. Here's how market leader Subway does it

WORDS IAN MARTIN

he Success of the Rachana Pancholi’s outstanding give Franchise Owners reactions, Subway® brand is not mentorship of new Franchise comments and improvement about the number of Owner Kareemaa Musa as she opportunities in real time. It is T restaurants there are. prepares to open her first restaurant invaluable for Franchise Owners to In fact, it is not even just about the in Barnsley has inspired a mini- learn what they are doing well great, innovative menu options we series on BBC One TV. At different and, even more importantly, THE AUTHOR serve. It is truly about our people. times, we helped save a restaurant when they need to take corrective Ian Martin is Senior Our guests, our team members and that the owner was told had to close action quickly. Vice President Inter- of course, the more than 20,000 because the building was going national at Subway franchise owners that make up our into reconstruction and another Connect with brand in more than 100 countries that needed a waiver to work with a your market across the globe. delivery vendor for its survival. 2 Our “Fresh Now Evolution” Our core values of Family, Our franchise mentorship is based initiative is the biggest change at Community and Opportunity are at on five key initiatives. Subway in a decade. The focus is to the center of our brand. Values that make sure that our restaurants are have been part of Subway since Deliver restaurant regionally relevant. Certainly, the the first restaurant opened excellence taste profile of an American is very in a shoreline town in 1This is the most critical different from someone in India Connecticut, USA. element for a Franchise Owner. or Brazil. We have about 44,000 Since that first submarine At Subway, we think of restaurant restaurants, and we are dedicated to sandwich shop opened in August of excellence as delivering the ideal refining what ingredients need to be 1965, thousands of entrepreneurs guest experience by well-trained in every part of the world and rolling around the globe have had the and friendly Sandwich Artists™. them out efficiently. opportunity to own their own We offer numerous tools to owners For example, we just introduced a business and realize their dream to help them achieve restaurant chili and paprika roll in Europe. In of being their own boss. With excellence, the most prominent Australia, where gluten free bread is franchising comes the opportunity one we call “Brilliant at the Basics.” a much bigger deal than it is in most to do just that but with a layer of With that, we offer detailed training parts of the world, we have gluten support and training not seen in a on every aspect of delivering the free bread and wraps. We expand single individually owned business. Subway experience, from working this idea to the ingredients used. When we talk about being a with hot food to calibrating the Recently in Europe, we rolled out 24 great mentor for Franchise Owners, equipment to providing a great new ingredients in more than 4,000 we are talking about something guest experience. restaurants in one day. very personal. We are there on the We also offer a guest feedback This enables us to create ground with them every step. In tool we call Subway Listens. We sandwiches that are regionally Korea, for instance, our Business encourage our guests to provide relevant in addition to our much- Development Agents (BDAs) feedback – they get rewards for loved favorites. We will still have meet with all franchise owners doing that – and we have teams the classics like our Italian B.M.T., monthly to work on promotional around the world constantly Meatball Marinara and Tuna. But strategies to drive traffic in those monitoring responses and social we want to give our Franchise restaurants. In England, BDA interactions. This allows us to Owners the opportunity to offer bold

24 GLOBAL FRANCHISE | ISSUE 4.5

5 Steps to Great Mentoring .indd 24 02/08/2019 12:43 choices that speak directly to “Everyone who joins the Subway their guests. team undertakes a two-week Giving our Franchise Owners the best Franchise Owner course, a 3 chance for success Listening to our guests helps us combination of in-restaurant and make sure that we are giving our Franchise Owners their best chance classroom training” for success. We provide extensive We also have a franchisee-owned training and development tools. Never stop mentoring International Purchasing Coops We’re very proud of our training For existing Franchise Owners, this (IPC). This is another way that 5at Subway. Everyone who extends to providing advice that Subway is different from many joins the Subway team undertakes a may mean relocating restaurants other brands. The benefits and two-week Franchise Owner course, to locations that might not have profits flow directly back to the a combination of in-restaurant and been viable a year ago but are now Franchise Owners. Each IPC works classroom training. No exceptions. promising spots. to produce the lowest cost items by After that, we provide continuous taking advantage of local sourcing. ongoing training via our online training platform, University of Engage digitally Subway. So rather than having to pore In our business, like in every through three pages on how to build a 4business, guests want more particular sandwich or how to clean an convenience and speed. For Subway, oven, we have that on video, translated there are two approaches we take into nine languages. to help our Franchise Owners in The key is that the training never this area. First, we have negotiated stops. We have Franchise Consultants global contracts with leading who meet with owners every month delivery services to create the to support, to coach, and to help industry’s largest delivery program. them find new ways to improve their These partnerships give our business. Additionally, our BDAs have Franchise Owners much better Franchise Owner meetings twice a year costs than they could get for to roll out new training and offer the themselves and offer another latest learnings. channel of distribution. We are constantly working to build Second, we are progressively one “Team Subway” that supports rolling out our Subway app around and learns from each other, because the world. The app allows us together we thrive. That to feature our loyalty program, job never ends. Subway MyWay® Rewards. It also gives our guests the ability to order and pay remotely and to send gifts. Additionally, it offers us the opportunity to communicate with our guests in a much more efficient and effective manner.

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5 Steps to Great Mentoring .indd 25 02/08/2019 12:43 SECTOR FOCUS

Pizza: How to Make Serious Dough

Providing customers with high-quality ingredients, gourmet pizzas and a unique dining experience is the key to making dough in the pizza industry. But staying competitive by meeting customers’ demands is what sets franchises apart and helps move brands forward, says Jeff Melnick, President, Boston’s Pizza Restaurant & Sports Bar.

WORDS BY JEFF MELNICK

26 GLOBAL FRANCHISE | ISSUE 4.5 izza appeared in the “Pizza innovation is steadily becoming United States with P the arrival of Italian more creative with many variations immigrants in the late 19th century. It and was popular in toppings and flavors, all the way in cities like Boston, Chicago, New York, Philadelphia, St. Louis and down to cauliflower crust” Los Angeles. The new-to-America product was introduced by peddlers when entrepreneurs, Ike Sewell and wings and cold beverages, which who walked the streets, selling Ric Riccardo, invented Chicago- customers often enjoy while ABOUT pizzas by the slice. It was also style deep-dish pizza and opened watching sporting events. Pizza BOSTON’S sold in small cafes and grocery their own restaurant on the corner has long been an all-American Boston’s is both stores which prepared pizzas for of Wabash and Ohio, Pizzeria fan favorite. a family-friendly casual dining their local communities. Uno. Since then, pizza restaurant Choosing the pizza sector over restaurant and an In 1905, Gennaro Lombardi concepts have proliferated and have other restaurant types is an easy energetic sports received a license to make and sell continued to open throughout the decision: pizza is one of the most bar, all under one pizza at the first pizza restaurant generations. Of course, this sector popular foods in America. When roof. For over 50 in New York. Fast forward to 1943, years, Boston’s remains highly popular to this day. Boston’s Pizza began in Canada has specialized in Pizza has universal appeal. in the 1960s, pizza & pasta were providing a relaxing It’s a tasty sustenance easily the focuses. While the company atmosphere and PIZZA IN NUMBERS shared with friends and family. offers over 80 menu items food from scratch There are currently 76,993 Traditionally, the robust flavors including pizza, pasta, salads, ribs, to parties of all sizes. currently pizza restaurants in America are comforting and allow for a burgers, wings, and more – pizza looking to expand according to PMQ Pizza wide array of additional toppings remains at the core. In addition, around the US Magazine and The 2019 Pizza that pair well with dough, sauce, pizza is very business-friendly: and Mexico. For Power Report: A State-of-the- and cheese. It also complements ingredient costs are low. Even more information, Industry Analysis shows there visit www.owna other long-established crowd- gourmet variations are typically are no signs of slowing down. bostons.com. In addition, the worldwide pleasers such as pasta, burgers, manageable from an execution pizza market is up to $144.46 billion, the United States pizza market is up to $45.73 billion and the Top 50 Average Unit Sales are up to $876,867 compared to the 2018 Pizza Power Report.

GLOBALFRANCHISEMAGAZINE.COM 27 SECTOR FOCUS

WHICH SLICE OF THE PIE? PAPA JOHNS BLAZE FAST-FIRE'D PIZZA Founded in 1985, this popular pizza This fast-growing franchise franchise boasts 2,629 locations, of first launched in 2012 and has which 1,724 are located outside the U.S. appeared in lists of top rated A further 744 outlets are directly owned. pizza franchises.

standpoint. Approximately It’s also important to be able Branding 1,750 pizza restaurants opened to differentiate your brand in a One of the most valuable things from 2017 to 2018 according to crowded market. In casual dining, that a company can do is have Statista. However, trends show there’s often the temptation to be strong branding. Every design that most restaurants close during everything to everyone. Where from atmosphere to offer, stems their first year of operation. The brands thrive is in finding what from an understanding of the restaurants that fail are typically is core to who they are and doing brand. More specifically for a the independent establishments that really well. When you enter restaurant, that means music, that are undercapitalized and the “sea of sameness”, you’re uniforms, food & drink, décor, tone don’t have sufficient funds to cover really in the danger zone. It’s of voice, service model, plating, etc. operating costs or contingency those key differentiators that Everything needs to be consistent plans in place. Also, the local make customers want to enjoy a from the look and feel to point of area’s competitive landscape can unique dining experience at your view, menu options, logo, design, have an impact if the restaurant restaurant and connect with your marketing efforts, etc. It goes doesn’t differentiate itself from the brand. Furthermore, it’s those without saying that the location competition, especially in dense same key differentiators that stand should always stay true to its brand markets. The restaurants that out to potential franchisees and values. In order for customers to succeed are usually the chains, convince them to invest in your connect to the brand they need to which is a benefit for franchising. franchise brand over competitors. know the “why” behind it. Larger restaurant chains have Some of the essential qualities It’s also important that the increased over the years and that your brand will need to succeed look of the interior and exterior usually experience longer life in this field are basic ingredients is consistent with the brand from spans and overall stability. These – your core company values. one location to another. This varies restaurants have higher success Authenticity. People should crave based on concept. There are many rates and are able to identify your food, your atmosphere, or independent restaurants that do trends and change rapidly to both. Restaurants become special food and service so well that if meet consumers’ needs. when they allow diners to block they are operating in a modest Across the pizza sector, adding out the outside world and enjoy space, it’s less important. In a high-quality ingredients and the moment. Be true to who you very competitive casual dining finding new trends that appeal are and what you offer. Be seen as space, the interior and exterior to more people is key. Also, consistently refreshing, comfortable, of your buildings is critical. How offering gourmet pizzas and and reliable. If you are genuine and your environment is perceived in menus focused on items made people know what your company the generation of Instagram and with dough is what will make stands for, customers will relate and visual dining is paramount in a business profitable and offers want to connect with your brand. diner’s decision on where to spend a cost savings for consumers Live and breathe your core company their time and money. It has to and franchisees, which allows values and others will believe and be inviting, yet different so that restaurants to succeed. want to follow. customers will want to come in and

28 GLOBAL FRANCHISE | ISSUE 4.5 PAPA MURPHY'S MARCO'S PIZZA As of 2016, there are over 1,500 Papa Pasquale Giammarco launched his Murphy's franchises across the globe. Even pizza business in 1976. Franchise- so, there are plenty of opportunities for those selling has been brisk of late: from looking to invest, especially among southern and 2010 to 2017, the company added midwestern states like Texas (207 franchises), 217 locations.

Pizza innovation is steadily “It’s those key differentiators becoming more creative with many variations in toppings that make customers want to and flavors, all the way down to enjoy a unique dining experience cauliflower crust, which Boston’s Pizza is introducing this summer at your restaurant and connect on a new menu. Guests like to play THE AUTHOR table chef and create their own Jeff Melnick spent with your brand” variety using a range of sauces, 40 years working cheeses, and toppings. With his way up through high-quality ingredients, gluten the industry, Melnick stay, visit frequently and provide offer and are more willing to invest began his 18 year an exclusive dining experience that in your brand, whether it’s for the and dairy-free options, alternative career with Chili’s Grill they can’t get anywhere else. food or as a franchisee. meats, plant-based and vegan & Bar as a manager While it’s important to have a ingredients, the possibilities are and ended as the memorable name, it should be Overseas endless. Today's consumers want Regional Director of Operations, in meaningful to the brand as it may be The secret to expanding fresh, healthy ingredients and the Southern California, one of the most important decisions pizza restaurants overseas is younger generations want tech- responsible for 78 you make. The name of your business knowing and understanding savvy choices in terms of apps, restaurants. From will have tremendous impact on how the international markets you ordering and delivery. There’s there, Melnick joined also a trend in different types of Red Robin Gourmet customers and potential franchisees are targeting. The pizza market Burgers, Inc., where view you. Keep it simple, unique and overseas is divided into different pizzas including breakfast pizzas, he served on the easy to remember. areas—full service, quick serve/ CBD infused pizza, dessert pizzas, executive leadership The backstory is relevant fast food and delivery—and each gourmet-style pizzas, Keto pizzas team as the Senior in order to understand the segment has its own rules. The and personalized pizzas – from Vice President of Operations. His most “why” behind the brand. If a quick-service restaurants and crust to toppings. recent role prior to backstory exists, it’s important to delivery services have profited the Pizza has an extremely loyal becoming President communicate that and leverage it most during difficult economic following. When you align that of Boston’s was as to explain your brand’s evolution. times, and yet are announcing the with the attractive margins on a Vice President pizza from a business owner’s of CraftWorks But back to authenticity, don’t most aggressive expansion plans. Restaurants & make up a story that doesn’t Internationally, the pizza industry perspective, it’s easy to see Breweries Inc., where exist! It has to be relevant and is thriving, with an increased why pizza will continue to be Melnick was the Brand meaningful in order for it to growth rate and in many places a desirable item to place at Leader of the Gordon resonate. The backstory is about overseas, the sector is trending. the center of your restaurant’s Biersch concept. the history of the brand and the On this subject, there are menu. Pizza restaurants have people behind that brand. If several trends in pizza restaurants enjoyed longevity thanks to the consumers know the backstory, that have evolved over the years. simple ingredients, a friendly they understand the quality and Customization is in high demand eating experience and successful value behind the products that you in the pizza sector right now. business models.

GLOBALFRANCHISEMAGAZINE.COM 29 GLOBAL FRANCHISE 4_5 ISSUE 24 master_GLOBAL FRANCHISE 02/08/2019 15:31 Page 30 GLOBAL FRANCHISE AUG ISSUE 24 master_GLOBAL FRANCHISE 01/08/2019 13:33 Page 31 BEHIND THE BRAND Behind the Brand - Fibrenew International

AT A GLANCE FIBRENEW The global INTERNATIONAL

Established: 1985 Number of franchised outlets: franchise that 253 Location of units: USA, Canada, Mexico, New Zealand, Australia restores success Investment range: £47,000 - £57,000 Minimum required capital: Already a proven success in the Americas, Fibrenew £20,000 Contact: furniture restoration is looking for dynamic partners Jesse Johnstone: +44.800.808.5642 to take its service to the world fibrenew.co.uk

re you an entrepreneur the cost of replacing their who is ready to join a damaged items. ground-floor opportunity? A If you are looking for SIMPLE AND EFFICIENT a business concept that can’t be OPERATION outsourced or replaced by machines, With low monthly overhead, few or with rock-solid support, marketing no employees to manage and a flat and technology systems, an exceptional rate royalty system, our concept is product line and a niche service that’s ideal for individuals who are wanting in-demand across multiple markets, to be in business for themselves Fibrenew may be a great fit! but not by themselves. You’ll be an With 30+ years of development and independent business owner but growth to 250+ locations in Canada, with the backing of a proven system needed to get the business started USA, Mexico, Chile, New Zealand, and and team that has decades worth of • custom made colour matching Australia, it’s now time for Fibrenew to experience and knowledge. We’re technology (reader and software) open in other corners of the world. always here to help. • iPad loaded with all software needed to operate the business IT’S NOT REUPHOLSTERY. INVESTMENT DETAILS: • print marketing materials and IT’S FIBRENEW We are offering a limited-time deal on trade show supplies Have you ever noticed a damaged the first franchisees to join us in any • on-going, on-demand leather sofa, ripped car seat, torn new country outside of USA, Canada, support - as much as you need! medical bed or cracked restaurant Mexico, New Zealand and Australia • training manuals, instructional seat and wondered; can that be fixed? (where we’re already established) videos, full documentation The answer is yes, and that’s what • Franchise investment in the US is • honesty and integrity from the Fibrenew does. We restore damaged $79,000 USD Fibrenew Support team, always. leather, plastic, and vinyl wherever it is • The first 3 franchisees in a found. Whether on furniture in homes new country will be placed at a IS IT RIGHT FOR YOU? or offices, in car/boat/plane interiors, significantly lower amount! We are looking for individuals with hotels, restaurants, pubs or medical • ask us about investment details energy and passion for building a facilities, individuals and businesses for an exclusive territory, products, successful business, who have a self- turn to us to help save them money over software, training and much more starter attitude but are also trainable and coachable. We’ll teach you the rest. WHAT’S INCLUDED? If this opportunity excites you, or you As part of the start-up are curious to learn more, we would package, you’ll receive: welcome the chance to talk with you. • exclusive territory with a We invite you to visit our website, check mix of residential and us out on social or give us a call. Ask commercial opportunities us about attending one of our monthly • 2 weeks of hands-on Franchise Opportunity Webinars where training in Calgary, Canada you can talk directly with existing • 6 months of field training Fibrenew Franchise Partners and Team coaching (as you start to build Members from our HQ Operations to your business) learn more. Thank you and hope to talk • all proprietary products with you soon!

32 GLOBALFRANCHISE | ISSUE 4.5 INSIGHT

10 Mandates for Effective Franchise Marketing The options for an effective marketing campaign can seem overwhelming. Stacey Ruth picks your way through the maze

WORDS BY STACEY RUTH

here is no magic got 33% click-throughs sounds confusing. Between 30-40% formula for effective successful, but when the intention of franchise organizations T franchise marketing. On is to recreate (or improve!) that is self-report experiencing the contrary, it is endless not enough information by itself. challenges converting leads into work, when it’s operating perfectly. There are too many components customers and having enough Franchise brands experience the that create a particular result, either time to get everything done. THE AUTHOR same challenges as any other brand, individually, or in combination. Another 16% admit feeling they Stacey Ruth is the plus they have the added burden of Whether it’s the offer or subject line, don’t have the marketing expertise founder of Inside Out perfecting their local marketing at demographic segmenting, or time to be fully effective. Marketing. She is a intensified levels. of sending, the success (or failure) The simple answer is to leverage leadership and brand- ing speaker on the The “buy local” trend worldwide of a campaign cannot be repeated the #1 Marketing Mandate to Unstoppable Leader adds another challenge to the without A/B testing. Effective Measure Everything. Measure and The Unstoppable delicate balancing of marketing marketing can only be repeated if where you are getting the largest Brand. She is a brand efforts between the franchisor and it can be measured. results, and focus there first. consultant, and the franchisee. As a result, many Although younger brands can be author of Truth and Dare: Inside brands are looking to redesign Mandate: unsure where to start, the best Out Marketing. their strategies to match the rapid narrow the focus strategy is always to create a strong InsideOutSmart.com shifts in global consumer buying 2 There are endless brand presence in just a handful www.unstoppable habits. Successful franchise brands marketing options available to of channels, and become masterful lbrandleader.com are altering how they market franchise brands. That themselves in this new landscape. is a good thing, but Here are the 10 Effective it can also be very Marketing Mandates these brands have in common, which are necessary for the next generation of franchise brands:

Mandate: measure 1 everything If a brand doesn’t know what’s working well, they aren’t measuring effectively. Digital marketing options provide countless ways to measure results, but without knowing what to measure, the data is meaningless. For example, knowing an email

GLOBALFRANCHISEMAGAZINE.COM 33 INSIGHT

there. Spreading a brand too thin have complex systems that are difficult applicable (but locally ineffectual) content. too fast creates a diluted presence. to navigate, and franchisees, desperate When it comes to going global, small is the for anything, will begin developing their new big. Mandate: up your own promotional tools. digital game It is also necessary to allow Mandate: co-operate 3 55% of franchises are franchisees some freedom to customize effectively focusing on social media presence, for their local market. The particulars 6The growing cost of advertising 39% focus on SEO, and 39% use of a certain brand communication on a local level requires a shared funding PPC. If your brand does nothing must have built-in flexibility for local approach. So it isn’t surprising that 65% of else, start digitally. differences; otherwise required brand franchisees use co-op advertising dollars This is true in Europe and Asia as compliance begins undermining local to pay for their advertising, which is well as the US. Although Europe has success. Rigid compliance is letter of the increasingly digital. Most co-op advertising lagged behind its US counterparts law only, and not delivering the spirit of programs focus on targeted digital such leveraging content marketing, and the compliance, which is trust in the brand as search and display advertising and presence of Asian censorship demands to meet the consumer’s needs. traditional channels like direct mail, radio a different set of digital platforms, all and community sponsorships. consumers are all looking to digital Mandate: think However, many co-op participants are not media for search results, recommenda- like a local using all the funds available to them. A recent tions, and answers to their questions. 5 It is all too common for US Local Search Association study asked why brands to think of “Europe” as a market. franchisees left co-op dollars unspent. Many Mandate: brand In fact, Europe includes 51 independent cited the difficulty of accessing either funds, consistently, not states when you add in transcontinental or approvals. However, 16% replied that 4 rigidly countries like Russia and Turkey, and the marketing tactics they were using were Franchise brands are hyper-vigilant those located in the West Asia territory not available. about brand consistency. With like Armenia. Similarly, it is easy for a In order to make the co-op work hundreds or thousands of franchisees European or Asian franchise to think for both franchisor ad franchisee, it must be operating units independently, it can of the US as a single local market, built collaboratively, or it will fall flat on the be easy for a brand’s identity to drift. when the vast geographic area local level, where the brand must create its The focus has become one of managing demands customization. first line of effective marketing. “There are endless marketing options available to franchise brands. That is a good thing, but it can also be very confusing”

the franchisees, instead of focusing Local areas have dietary preferences, on the brand itself. While franchisee seasons, holidays, products, sports inconsistency cannot be ignored, they teams, and community service will be the brand’s greatest asset for opportunities – just as a starting compliance if the brand attends to two point. Beyond that, there is a key tenants: growing dissatisfaction with The first tenant of brand unsustainable business practices, compliance is to know your customers and profit for profit’s sake alone. and what they want from you. This latter movement to build self- A franchise brand holds this sacred sustaining communities, combined trust between the customer and with local preferences, is requiring itself, and must communicate it to its businesses intent on going national or franchisees regularly and compellingly. global to become well versed in each When the franchisee understands the market they enter. “why” of the brand compliant materials, The easiest way for a growing they are more likely to use them. brand to think locally is to find a The second tenant of brand local franchise partner to advise compliance is to make it easier for and establish connections in the franchisee to use brand compliant the most meaningful ways. materials than any other option. Access, Additionally, becoming visible customizability and usefulness are using local digital content, vitally important. Too often franchises rather than universally

34 GLOBAL FRANCHISE | ISSUE 4.5 Mandate: Mandate: get Done correctly, email marketing de-commoditize personal maintains the franchise brand while 7 with content 8 Consumers crave high-touch creating a seamless consumer experience. experiences, so your brand must give Many email service provider allow brands Commodities sell products. Brands to share creative assets—like logos, images, sell a feeling. Content marketing takes it to them. Still, the personalization and templates—with numerous sub- commodities to brand status like of marketing is about more than accounts for franchisee use. A handful also no other vehicle. But it requires the beginning an email with the consumer’s let you ensure parts of the email can’t be franchise to intimately understand its name, as important as that is. edited, maintaining your brand control customers so its content can benefit Personalizing your website where it matters most. them. Answering the questions that experience through responsive design customers have is a great place to begin, with mobile-friendly features like swipe since the buying process almost always and click-to-call can create conversions Mandate: budget starts with a search. almost twice the rate of desktop effectively websites. Your franchisee sites need this 10 Budgeting effectively for Content marketing is effective, marketing might seem obvious, but without but only when the brand (and the even more than your company site. it, none of a brand’s great initiatives can franchisees) focus on quality content Personalization is about convenience, be effectively accomplished. Roughly 1/3 published regularly. The timetables not follow ads. When a page or email is of franchise brands admit they struggle many content providers suggest are customized for them, a customer feels both with having the budget to build their overly aggressive for most brands. Find you took the time to know them. marketing, as well as funds to hire staff to a publish rate that works for you. Mandate: you’ve got execute it. As a result, this 10th Mandate mail! (or else) may be the most important mandate of all. 9 With all the digital marketing Without it all else is just a nice theory. available, it can be easy to overlook To build an effective budget, it is the power of email. According to important to know what the projected Sprout Social, email marketing boasts ROI to the system’s bottom line is. Hard 3800% ROI – at least double any other data backing up a proposed marketing marketing channel. spend, with tracking built in, means an appropriately substantial budget is far easier to demand. But if the dollars simply aren’t there at first, the idea of focusing in Mandate #2, and then sharing the burden of funding via a collaboratively build co-op from Mandate #6 is the best possible alternative approach.

As Peter Drucker said, “Marketing is the totality of the business.” When a franchise markets effectively, its success is nearly assured.

GLOBALFRANCHISEMAGAZINE.COM 35 INTERVIEW

Global Franchise Meets

DAVID BARR David Barr is the first Chairman of the International Franchise Association while operating as a franchisor, franchisee and a supplier in the franchise industry

36 GLOBAL FRANCHISE | ISSUE 4.5 Tell me something of your How varied are your franchising be held liable for the employment actions background and business responsibilities? of franchisees, then many of them will I characterize myself as a finance person, Currently, I am a franchisor through determine they do not want that risk and turned operator, turned strategist. I my investments in or through my board stop franchising, or they will determine to attended university at University of seats of Capriotti’s Sandwich Shops, mitigate the risk. Then they need to have Virginia and then began my career at Price Inc, BrightStar Care, Lash lounge, control of franchisee operations (which they Waterhouse in 1986. After four years, I left CityRow, TITLE Boxing Club, and Your do not have today). Both of these scenarios public accounting and joined Pizza Hut Pie. I am a franchisee of KFC, Taco are bad for franchising. in the corporate finance group. While at Bell, and Capriotti’s. I am a supplier Pizza Hut, I learned restaurant operations, through serving as Managing Director What can be done to marketing and human resources. In 1994, I of Franworth, which I co-founded with address them? became the CFO and subsequently the CEO John Rotche, to provide intellectual and The best action that IFA and the for Great American Cookies, a franchisor financial capital to accelerate the growth franchising industry can take to combat and operator of mall-based cookie stores. of small franchisors. the joint employer initiatives is to In 1998, on behalf of its shareholders, I sold educate lawmakers, regulators, and the Great American Cookies and since that How do you juggle your broader community. Those of us in the time I have focused on two simultaneous various commitments? franchise industry know that franchisees career paths: 1) as initially a franchisee and In order to work with so many companies are independent businesspeople who more recently as a franchisor, investing my at the same time, several things need make 100% of their employment own capital in growth companies, and 2) to occur. First, the management teams decisions. However, at times, unions, representing private equity firms with their need to be incredibly good at what the press and lawmakers want to tag portfolio companies by sitting on boards of they do. There needs to be alignment franchisors as “in control”. It is my hope directors of consumer-facing businesses in between the investors, board members that through education we can help franchising, restaurants and jewelry. and management. Second, surprises everyone better understand the franchise should be avoided. In any business, business model. In addition, I believe How would you describe your unexpected events occur but they should as an industry we need to highlight the role within the IFA? be minimized so that management is not many good initiatives that franchising For 2019, I am honored to have distracted and is able to focus on growth. provides within the communities. been elected to be the Chairman of Finally, I will say that I am not always For example, the IFA Foundation International Franchise Association perfect in juggling the commitments, supports Franchising Gives Back, an (IFA). The Chairman is a volunteer but as I recently heard a speaker say, “If effort to highlight the many positive position, elected by the board of directors I have 143 balls in the air and drop 20, actions of franchisees within their local for one year. As Chairman, my role is to then I still have a net win of 123 balls”. communities that occur daily. a) liaise between the CEO, the IFA staff, Sometimes I have to keep this in mind, so and the board of directors, b) ensure I do not beat myself up over my misses. What does the coming year strategic priorities are being addressed, hold for you? c) interact with key franchisor, franchisee What do you see as the key I envision two areas of priorities for and supplier constituents, and d) at challenges facing franchising IFA in 2019. First, IFA will prioritize times, be the face of franchising with right now? and devote its energies to all things government officials or the press. While franchising, similar to many franchising. That is, the association industries, has previously faced the ebbs will address all threats to the franchise To what extent is this role and flows of regulation, in my opinion, business model – whether from policy informed by your own it has never faced such an existential and regulatory boards such as the franchising experience? threat as joint employment. And, this National Labor Relations Board, or As Chairman of IFA, I am the first threat is not just within the United States, legislative matters such as discriminatory Chairman that has been a franchisor, but worldwide. 'Existential' because if laws passed by states and cities. This franchisee and a supplier in the franchise franchisors were deemed to be joint will also include accounting and tax industry while serving as the Chair. I employers, the nature of franchising will matters, such as the recent clarification of often say that I am all things franchising. forever change. Specifically, as a franchisee intangible accounting for franchise fees. This plurality of roles provides me with of a variety of brands, I value my ability IFA needs to take the lead on issues that a unique perspective on franchising. to be an entrepreneur and establish the directly relate to franchising. Second, Ultimately, I am in love with the culture, compensation of policies, and IFA will strategically plan for future franchising business model that allows management goals of my organization. We needs and threats by being more present for entrepreneurs and small business named our company PMTD Restaurants in the broader business and government owners to be married with proven (which stands for People Make the communities. This is necessary because processes and great brands of franchisors. Difference) because we fundamentally others, who often do not understand Through the franchise business model believe that people are the number one the franchise business model, impact many businesses have achieved success, asset and point of difference of retailing. the daily operations of franchisors, jobs have been created, lives have been My ability to establish this culture will be franchisees, and suppliers. changed and communities have been at risk under an expanded joint employer positively impacted. definition. Likewise, if franchisors are to

GLOBALFRANCHISEMAGAZINE.COM 37

Mary Brown’s is seeking Master/Area is seeking Master/Area Mary Brown’s be part of to ready you Are Franchisees. story? this success contact learn more, To Kingdom: United [email protected] American: Latin [email protected] Middle East: [email protected] All Other: [email protected] AT A GLANCE AT BROWN’S MARY & CHICKEN TATERS “As global global “As demand for quick service chicken restaurants continues to increase, Mary Brown’s is looking to capitalize on international opportunities” Canadian Franchise Association’s Association’s Canadian Franchise nine Choice Award Franchisees’ This is an honour years in a row. only a handful of franchises Mary can claim. Chahin credits owners with Franchise Brown’s says, He longevity. the brand’s “They the heart at are of our and theybrand bring the brand to life in communities across forward – Canada – and going across the globe.” What will the next What 50 years growth and more bring? “More Chahin says, for sure,” innovation “but lose sight of what we won’t special. A Mary Brown’s makes delicious handcrafted menu and will always hospitality genuine define our brand”. LOOKING TO TO LOOKING THE FUTURE

Mary Brown’s has developed Mary Brown’s COMMITMENT COMMITMENT FRANCHISEES TO 50-year history as a Brown’s Mary is defined by Canadian franchise its commitment to its franchisees. has won the Brown’s Mary PREMIUM QUALITY PREMIUM QUALITY “Our product is made from ingredients. with fresh scratch are and potatoes Our chicken and hand cut, breaded marinated, each and every at cooked We store. using our cook in small batches proprietary throughout the cookers and superior quality to ensure day is It taste, and of course, freshness. absolutely the most delicious, best ever”tasting chicken Chahin, Hadi & COO. President in every standards stringent facet of cooking, cleanliness, – operations service, product taste, appearance, – and beyond. Each presentation assessed and is frequently store to standards for adherence graded by internal and independent parties. required are All franchisees training to complete a rigorous which encompasses all program aspects of running a successful business.

ary Brown’s Chicken & ary Brown’s is a well-known Taters inand beloved brand Canada with a 50-year is launching internationally is launching

50 years of proven success of proven 50 years Store count has doubled in the has doubled in the count Store 15 for sales growth Same store Best one of Canada’s Awarded and modern rebranding Recent As global demand for quick service last decade – currently at 160+ at 160+ last decade – currently in Canada with plans stores 2022. 300 by reach to years. consecutive Managed Companies in 2019. attract to design continue store audiences key � MARY BROWN’S BROWN’S MARY SUCCESS STATISTICS � � � � M history of of success and hundreds thousands of fans across the country. continues to restaurants chicken is looking Brown’s Mary increase, to capitalize on international opportunities. Latin Europe, East have America and Middle been identified for international analysis careful expansion. Following demographics, density, of population competition, economics and ease offer these regions of assimilation, significant growth potential for this iconic Canadian brand. Takes Wing Takes ISSUE 4.5 |

Canada’s largest quick serve chicken restaurant restaurant chicken serve quick largest Canada’s Canadian Brand Brand Canadian BEHIND THE THE BEHIND BRAND

Behind the Brand - Mary Brown’s Chicken & Taters FRANCHISE 38 GLOBAL GLOBAL FRANCHISE 4_5 ISSUE 24 master_GLOBAL FRANCHISE 02/08/2019 15:33 Page 39 PREVIEW

AT A GLANCE BE MY FRANCHISE TURKEY: EXPO TURKEY Where: CNR Expo Center, Istanbul When: Be My Franchise 10-13 October 2019 Website: East meets West at Be My Franchise Expo, bemyfranchise.com.tr Turkey's top franchise show

e My Franchise Expo’’ ‘‘ consistently connects B the most successful franchise concepts with the most qualified investors seeking to own their own business or expand their ventures. The Be My Franchise (Bayim Olurmusun) website, magazine, and internet portal plays an important role in the decision-making of those investors. Our mission is to Premier event contribute to the global and Turkish Be My Franchise, which has been economy, while providing social organized by Media Force since benefits for our community. 2005, is the premier annual event Medyafors is the organizer of the for Turkey's franchise industry leading trade fair events in Turkey. and connects existing franchisors For the last 17 years Medyafors has and industry suppliers with new been organizing the most successful franchisee and master franchisee Franchise Fair in the region. candidates. From international Medyafors offers lead generation expansion to selling single units and face-to-face opportunities to or master franchises, the Be my grow your business. It also has Franchise Expo is the franchise a long-term global partnership industry's number one event in with other exhibition organizer Europe and The Middle East. companies around the world such The next Be My Franchise Expo as; US, UAE, Russia, and Germany will take place on 10-13 October which provide global opportunities 2019 in Istanbul at the CNR for our clients. Expo Center. At Be My Franchise Since ancient times and due to Expo, large numbers of the hottest its geographic location, Turkey franchise concepts and opportunities has been a bridge between the will be on display and thousands of East and the West and was an the most qualified prospects from important turning point on the across Europe, Middle East and the Silk Road. Running between China Balkans will be in attendance. Be and Europe, Turkey has been an My Franchise also sponsors the essential conduit of commerce and industry’s most comprehensive knowledge since classical times. conferences, helping people to Today, modern Turkey has grown as acquire the information they need a center for business opportunities for success in franchising, right – especially in the franchise market. from the start. “Today, modern Turkey is a center for business opportunities – especially in the franchise market”

40 GLOBAL FRANCHISE | ISSUE 4.5 GLOBAL FRANCHISE AUG ISSUE 24 master_GLOBAL FRANCHISE 01/08/2019 13:33 Page 41 BEHIND THE BRAND

AT A GLANCE HELEN DORON EDUCATIONAL Put Your Passion GROUP Established: 1985 Number of franchised outlets: Over 1,000 Location of units: Albania, Austria, Bosnia for Education and Herzogovinia, Bulgaria, Chile, China, Croatia, Cyprus, Czech Republic, Ecuador, Estonia, France, Germany, Hungary, Israel, Italy, Kazakhstan, Lichtenstein, Macedonia, Mexico, Montenegro, Peru, Poland, Portugal, Romania, Russia, San to Work! Marino, Serbia, Slovakia, Slovenia, South Korea, Spain, Switzerland, Thailand, Turkey, Ukraine and Vietnam Investment range: € 150,000-250,000 Minimum required capital: €200,000 This award-winning global educational franchise puts URL: helendorongroup .com children first while offering you a fulfilling business Contact: [email protected]

ow often do you • MathRiders: Enhancing get a chance to do children’s natural mathematical H what you love to skills through hands-on, do, make a positive explorational learning. Students impact on countless others, ages 4-18 learn maths using and feel that you are a part of games, music and innovative something truly meaningful learning techniques. – all while building your own • Helen Doron Kindergarten: successful business venture? A lifelong love of learning, With over 1,000 learning offering optimal stimulation centres for children of all ages and development for young in 37 countries, Helen Doron minds and bodies. The unique They will be with you every Educational Group is more and carefully planned courses step of the way, answering your than a leading, award-winning include English, Multi-Music questions and providing you with educational franchise – it is (songs in seven languages for the support you need to turn a community of passionate linguistic sensitivity and brain your business aspirations into professionals using a proven stimulation), art, science, reality. All you need is the passion methodology encouraging a mathematics and specialized for building an education-based love of learning. exercise programmes that business and the funds to make includes dance, yoga and pilates. it happen. We’ll help you with FIND THE FRANCHISE ongoing training and support in BUSINESS MODEL BEHIND YOU marketing, sales, administration THAT BEST FITS ALL THE WAY and much, much more. YOUR ASPIRATIONS: Over the past three and a half • Helen Doron English: Our decades, Helen Doron has created KEEPING UP WITH flagship franchise offers a franchise programme that TODAY’S TECH TRENDS programmes that enable children nurtures its partners. When you The Helen Doron Group to learn English naturally in decide to open a Helen Doron always has its eye to the future, a fun and effortless manner learning centre or school, you are making sure our educational through games, stories, songs never alone – you have the full materials speak to the new and innovative apps. support of our professional team. generation, utilizing the most advanced features current “When you decide to open a Helen Doron technology has to offer. Our interactive department is learning centre or school, you are never constantly developing new apps and games that our teachers alone – you have the full support of our and franchisees can use in professional team” class, as well as to enhance

42 GLOBAL FRANCHISE | ISSUE 4.5 Behind the Brand - XxxxxxxxxxxHelen Doron Educational Group

GLOBALFRANCHISEMAGAZINE.COM 43 GLOBALFRANCHISEMAGAZINE.COM the learning at home, including home, including the learning at for station radio our 24/7 adolescents, TeenBuzz.co. A BUSINESS. THAN MORE OF LIFE. WAY A Becoming part of our network business many has changed they never lives in ways people’s imagined possible. Joining a successful international and growing your organization own profitable business is only becoming are the beginning. You part of a global community the next helping to prepare with the skills for life generation will and the love of learning that the rest them for accompany of their lives. of their lives. Be part of something extraordinary Master Doron – become a Helen Find out more today: Franchisor. [email protected] CEO & FOUNDER have worldwide million children About three learning English with the from benefited can you out how Method. Find Helen Doron network! marketing@ join our international helendorongroup.com GLOBAL FRANCHISE AUG ISSUE 24 master_GLOBAL FRANCHISE 01/08/2019 13:33 Page 44 INSIGHT

Canada v USA Vancouver-based Angel Coté demystifies the cultural differences between Canada and the U.S and asks, 'are we really that different?'

WORDS BY ANGELA COTÉ

n preparation for that in general, Americans see Next Door and Live Well Exercise sharing my insights Canadians as more polite, a Clinics with franchises in both I into the perceived little more others-centered, and countries, “the adage of ‘Americans cultural differences more willing to help others out are more aggressive than between Canadians and Americans, (pronounced “oot” - our American Canadians’ is certainly true when it I decided to do a little research. neighbors who love to laugh at how comes to business on a whole. And THE AUTHOR I asked a handfuls of my closest we say “out” for some reason). On I see this in our competition, in our Angela Coté is a American friends and peers in that note, I would be remiss not franchisees, and our partners. They Franchise Growth the franchise community and I to mention how much I get a kick are more aggressive when it comes Catalyst at Cultivate kept hearing “I really don’t think out of Americans trying to properly to sales, they are much more likely Advisors. Angela guides early and es- Canadians are that different” and make use of a very important word to go all out to dominate a market. tablished franchisors the most common response was in the Canadian dictionary, “eh”. They can also be much more on where to invest “Canadians are just nicer”. I think Contact me for free lessons. cutthroat in how they do business. their time, money and that’s a compliment, but when it Regardless of who’s nicer and There can be a certain "edge " to energy to make the biggest impact. She comes to doing business, is it really who correctly pronounces the word the American style versus what also helps franchisors a good thing? improve franchisee re- As a franchise growth catalyst lations and ultimately who works with franchisors all “In Canada, the culture varies performance and across North America, I mostly facilitates impactful significantly from Toronto to collaborative sessions agree that we’re not really that to elevate franchise different, but I have to admit, I satisfaction. wasn’t exactly sure what people Halifax, just as it does from meant when they said we are “nicer”. Columbus, Ohio to New York City” When I dug a little deeper, it seems “out”, it is probably worthwhile to we have up here in our polite and dig even further on the cultural ‘everyone wins’ Canada.” differences between how Canadians That being said, differences and Americans do business so probably come down to being more we can optimize and leverage regional in nature within each our relationships and country than they are dependent opportunities. on what side of the 49th parallel For the most you are on. In Canada, the culture part, we perceive varies significantly from Toronto Americans as a to Halifax, just as it does from little more… Columbus, Ohio to New York City. (um) assertive Travellers might find the Midwest and self- “friendly people” in certain parts assured than of the US to be warmer and more their polite approachable than the polite and slightly Canadians they find in a big Vs more cautious Canadian city like Toronto. Canadian On that note, Justin Livingston, counterparts. VP of Global Development for According Coyote Ugly Saloons and One to John deHart, Cannibis Franchise Systems, well-respected highly recommends taking the co-founder of Nurse time to get know each individual

GLOBALFRANCHISEMAGAZINE.COM 45 INSIGHT

market and learn And keep in mind that while the buying habits Americans reap the benefits of of consumers as well cross border brand awareness, it as the differences in doesn’t always work the other way business and franchise around. What I mean by this, is that law. From there, you probably mostly through media, can make a strategic we Canadians often get exposed to and intentional entry to American concepts, so by the time a optimize the opportunity US franchise enters Canada, there’s for success. a good chance there has already Dan Monaghan, founder of been some brand awareness built the Clear Summit Group who up. When a Canadian franchise owns five franchise brands with enters the US, we are often starting over 1000 franchisees across more from scratch. the globe, shared his thoughts In light of the themes of that “The biggest threat might be politeness, market size, respecting found in the competitive landscape market differences and a culture of the two countries. While the that is a little more ‘chill’, here great advantage of the US is the are six key cultural differences magnitude and potential of the you should know about when market, in general, conditions are doing business with our American more competitive”. For a Canadian neighbours, based on my experience company, opening a corporate and conversations with various location in the US market that is in business and franchising peers. a market you intend to target is a great way to test how your unit Have a Plan vs economics will fare south of Just Do It the border. It’s also a great way 1 When doing business in the to work out some of the kinks in U.S., hold on to your hats, fellow your system and calibrate your Canadians! Americans in business business model so that you are are action-oriented. They typically prepared to scale quickly when have more tolerance for risk-taking, the time is right. enabling them to make decisions Another interesting observation more quickly. That means that in came forth when I was in a general, things move a lot faster and conversation with my franchisor require a firm eye on your ethics to client, David Cutillo, CEO of keep up. BeBalanced Hormone Weight Loss Centers, whose mandate Open for Business is to help women across the US Along with a higher tolerance reduce stress, sleep better and 2 for risk-taking, Americans are lose unwanted weight by helping generally more open-minded and them balance their hormones accepting of change. They are more with a proven natural approach. willing to spend money on third- David commented that Americans’ party services, like consultants with stress levels are at an all-time industry expertise, probably because high and that Americans perceive they are more tolerant risk-takers. Canadians to have more of a However, make sure you get it right, culture of stopping to enjoy life, a because they have high expectations little more like you would expect of what they get in return, which in Europe. leads to my next point.

“Along with a higher tolerance for risk- taking, Americans are generally more open-minded and accepting of change”

46 GLOBAL FRANCHISE | ISSUE 4.5 Fail Quickly owners and managers stay on top Given that Americans of gym equipment repairs, “With 3 typically have a gutsier Americans there are no second chances. If you misstep, they will attitude about risk-taking than us Canadians, you may be able move on to your competition.” to predict that they also have a Americans may have a higher greater acceptance of failure and tolerance for risk-taking and be they understand that in order to more open minded about investing progress, you often need to fail a in services, but they will be less few times. Instead of seeing failure forgiving if you steer them astray. as a negative, Americans look at failure as an opportunity to learn. Overall, the similarities are Their attitude is closer to: Try it. more apparent than the Did it work? No? Okay, let’s move differences. The cultural on and try something else. vibe in both countries is one of collaboration and Watch Your Back! fun, and the business Americans are much more exchanges are similar to 4 litigious than we “nice” those I experience here in Canada. However, Canadians. I’m not sure if it’s because they’ve been burned by as a key trading too much hot coffee or slipped on partner with the too many wet floors, but regardless U.S., it is important it is a key difference, especially to be aware of when it comes to franchising. and respect the Canadian franchisors often differences in the overlook the significance of this in business culture terms of time, money and overall in pursuit of resources when entering the U.S. optimizing market. And it doesn’t stop there. market An American disatisfied franchisee opportunity. is more likely to take the litigation route than Canadian franchisees when things go awry.

Circle of Trust Once you “get it right” and 5 have proven yourself, you may well have made an American friend for life! Americans are keen on building relationships in business with people that they trust. It can actually prove to be a challenge when it comes to building a referral network. I have met many franchise vendors who already have their go-to people they refer clients to. It takes a lot of effort and relationship nurturing to really get on their radar, but it is worth it because once you do, the referral opportunities are gold.

You Never Get a Second Chance 6 to Make a First Impression According to a local business friend of mine, David Johnson, founder of an innovative technology company called Ecofit, which helps gym

GLOBALFRANCHISEMAGAZINE.COM 47 INSIGHT Ready, Fire, Aim Prevent costly mistakes with a focused, informed strategy on which countries to target.

WORDS JUSTIN LIVINGSTON

nternational expansion Not all markets • What are the differences in THE AUTHOR is complicated, exciting, are a good fit culture, language, religion, Justin Livingston is VP difficult and ultimately You have a brand and system that traditions, landscape of franchise I rewarding. Sounds development of works in your home market, it must and climate? ONE Cannabis, a great, right? Unfortunately, the work everywhere else, right? Wish • How will your brand translate U.S.-based cannabis biggest hurdle arises before you it was that simple. The problem into the market? franchisor. A Certified even begin: where do we go? with “everywhere else” is that it’s • Will the local culture embrace Franchise Executive With almost limitless your brand? (CFE), prior to joining not your home market. Even the ONE Cannabis, opportunities, concepts must slightest cultural shift could mean • Do your points of differentiation Livingston was the devote ample time to researching a big disaster for your international mean the same thing in this Vice President of various markets in order to expansion efforts. new market? Global Development determine which is Take a serious look at the gravity • Do common practices of your at Coyote Ugly right for them. When Saloon for four of the journey you are about to brand violate any cultural norms years, developing you make the leap embark on and be ready to roll of the potential market? the international to expand to other up your sleeves for some good franchise program countries, there are old-fashioned research on each The research process is as well as launching many factors that their franchise brand potential market to determine the most critical step in new markets should be driving culture, language, demographics, Start first with a list of countries around the world. your strategy and product need, and much more. that you believe would be a good Livingston is also the preparing you to Franchising’s history is full of target for expansion and ask founder of Franchise enter new markets. concepts and products that have yourself two questions: Why Transformations – a franchise consulting failed abroad due to their brand do we want to enter this firm that specializes name, product delivery, or even market? Is there a need? in all aspects of their core business practices. Before These are loaded questions franchising, including starting the research process, helping create robust franchise there are several key questions programs from you should be asking about each existing independent potential market. businesses. Justin can Each and every one be reached at justin@ of these questions ocginc.com and the hundreds more can impact how well your brand is received.

48 GLOBAL FRANCHISE | ISSUE 4.5

Ready aim fire.indd 48 02/08/2019 12:44 to start is by utilizing the many “Before starting the research government programs available that introduce brands to new process, there are several key markets abroad. Securing local consulting relationships can also questions you should be asking help build your understanding of about each potential market” the local culture and assist you in securing the right prospective brand that can take any well-intentioned and through in-market contacts like partnerships. Further, gain first- franchisor down a rabbit hole, but local consultants and/or government hand insight into the new consumer should act as THE starting point. agencies. These local allies are a base by visiting the market and You need to begin with an tremendous resource that can help directly evaluating the need, understanding of the culture and identify what pitfalls may lie ahead. competition, and potential areas traditions as well as addressing if Making assumptions that your of focus. there are local options that would brand can enter any market without Once the appropriate target signify a need for what you offer. Do being sensitive to local needs is a markets are decided, take great your initial market research online surefire way to set your brand up for care in securing the right franchise failure. This knowledge is vital to partnership. Seek partners with prioritize which markets to target local market knowledge and and where to begin the search for operators that will help you enter the right franchisee. the market. One unit doesn’t make a market splash, so have patience to Other key find the partner that will help meet questions your short-term market entry to consider in the goals as well as your long-term research phase: expansion plans. • Are there any obvious hurdles that may be too tough to Preparedness and overcome? Avoid wasting patience are key precious resources if there is an to survival obvious misalignment to the Taking the time necessary to brand and new target market. understand the eccentricities of • Does your concept make sense each new market will set-up the in the market? For example, brand for a warmly-received market you wouldn’t bring a bar to a entry and years of long-term success non-drinking country, a luxury and expansion. The world is a small concept to a market with low place and global expansion is within disposable income, or an “eat- reach for those willing to develop a with-your-hands” food product to careful and strategic entry to new a country where cultural norms markets. require a knife and fork.

The list is endless and missing these in your initial research can be a costly mistake.

There is no substitute for local knowledge Once you have determined there is a potential fit for your brand in an international market, it’s time to get local. The best place

GLOBALFRANCHISEMAGAZINE.COM 49

Ready aim fire.indd 49 02/08/2019 12:44 GLOBAL FRANCHISE 4_5 ISSUE 24 master_GLOBAL FRANCHISE 02/08/2019 10:17 Page 50 DON'T LET A @globalfranmag FRANCHISING Get connected OPPORTUNITY linkedin.com/company/ PASS YOU BY, global-franchise Bringing you the latest trends, news and CONNECT WITH facebook.com/ happenings in the online franchising space US TODAY AT: globalfranchisemag

IS YOUR FOOD FRANCHISE UPPING ITS DELIVERY GAME? What with the ubiquity of UberEats and Deliveroo, WHAT'S it's no revelation that TRENDING modern consumers now have an insatiable “On both globalfranchise hunger when it comes magazine.com and its to food delivery. But UK-focussed sister website, how well is your food what-franchise.com, we've and beverage or QSR noticed a lot of online traffic on the children's, education franchise catering for and working from home this market? franchise opportunity According to a recent categories. With a plethora State of the Restaurant of exciting brands operating Industry report, published within this space – Tutor in the (America-based) Doctor, School of Rock, National Restaurant Stagecoach, Helen Doron association, 38 per cent Educational Group to name of U.S. adults – including 50 per cent of millennials – state that they're more likely to have a few – it's no wonder why restaurant food delivered than they were just two years ago. Other key takeaways from so many investors are showing the report include: interest in representing these organisations in • On the heels of the millennials come the Gen-Z's, who are digitally native and for whom untapped territories.” delivery will be an expectation Looking for your perfect • More than six in 10 family-dining, casual-dining, and fast-casuals operators say that master franchisee? We can their off-premises sales, which include takeout and delivery, are higher than they were help – contact the team today two years ago James Fell, Head of Content • Nearly four in 10 operators plan to invest more capital in expanding their off-premises [email protected] business in 2019

THE POWER OF VIDEO Haven't factored video into your franchise's • Using the term 'video' in an email subject marketing strategy? Well, these stats will line boosts open rates by 19 per cent have you scrambling for the nearest camera. • 96 per cent of B2B companies are planning to incorporate video into • Video now accounts for half of all their content marketing plans over mobile traffic the next year • 75 per cent of business execs watch work-related videos at least once a week *Stats from mwpdigitalmedia.com

GLOBALFRANCHISEMAGAZINE.COM 51 INSIGHT

4 Steps to Choose your Franchisee A common mistake, especially for emerging franchisors, is to choose the wrong franchisee. Here are four steps you can take to prevent that happening

WORDS BY DAN BISH

’ve got a birthday “Franchise development isn’t coming up soon and, I truth be told, I’ve just about adding new units. racked up quite a few of them now. Birthdays are You’re laying the groundwork always a time for reflection for THE AUTHOR me – a little analysis of where I’ve for everything thing you’d like to Dan Bish is a 30 been and where I’m going and all year veteran of the that. Lately I’ve been reflecting a achieve for years to come” franchise industry, lot on just how much this crazy as both a company executive and as a franchising business we’re in has overheads and starting to really candidate doesn’t qualify, don’t take franchisee multiple changed over the years and how, gain some traction when, wham!, their money. In other words – “The times. His specialty in some ways, things just seem to a major conflict with a franchisee fish that jumps in the boat is the is in structuring stay the same. hits your desk and it’s all you one that starts smelling first!” So, franchises for growth, franchise marketing Take franchise recruitment for can think about. All focus is lost, stop “selling” franchises and start and franchise example. While we’ve seen huge growth slowed, and why? Well, let’s “qualifying” your candidates. development. strides in technology that makes sort out the four most common He is a partner in it incredibly easy to engage and mistakes I see with franchisee Don’t ignore the FranLaunch USA, inform our franchise candidates, selection, and how fixing them a Tucson, Arizona human element there seems to be a disconnect based management can build your brand and increase 2 As much as I love firm specializing in between who we think makes a growth and stability. technology and everything it’s done helping international great franchisee and who gets to streamline all aspects of the franchisors gain selected. I hear time and time Stop selling recruitment process, I recommend a foothold in the American again from franchisors who Top of the list first and you don’t lose sight that this is marketplace. are mired in conflict with their 1 foremost – franchise much more about winning hearts franchisees. Or they’ve allowed an development isn’t just about and minds than about lead scoring attitude of us-versus-them to infect adding new units. You’re laying or marketing analytics. Especially their corporate culture. What’s the groundwork for everything if you’re a new franchisor – you’ve at play here is that franchisors, you’d like to achieve for years to got to become expert at expressing especially emerging ones, are come. As you continue to grow the vision and mission behind your often signing the wrong players your concept, you’ve already got franchise and then work to find early on. I single out emerging significant challenges to overcome. candidates that strongly align with franchisors here because usually Everything from adopting new it. A candidate can tick all of the more experienced franchisors have technologies to marketing to other boxes – financial, experience, already been forced to find and vendor relations and more. Do you etc. – but they also need to be recruit better team players. They really want to tackle all this with inspired by your brand’s unique simply don’t have a choice if they franchisees who don’t see your compelling story. Yes, this is harder want to prosper. vision and won’t or can’t execute than just letting them jump in Still, it’s a story I hear all too alongside your corporate team? the boat. But the dividends paid often – expansion is going along You’ve got to put rationalization will extend well into your great, you’re finally covering and economic concerns aside - if a brand’s future.

52 GLOBAL FRANCHISE | ISSUE 4.5 The shotgun system so you’re dealing with data I get the fact that franchising approach is a killer in an objective way. can be a numbers game. Budgets, 3 Simply put, where you • Have a multi-interview process cash flow and capital allocation are facts of life. But over time, nothing award franchises can be as and assure that interviews are a important as who you select. One non-negotiable task for all of your can add more to your bottom line of the biggest mistakes I see, department heads. than having a supportive franchise especially with emerging brands, community that enthusiastically or with international brands Also, if you’re the decision maker, supports you and your brand and expanding into America, is the don’t share your thoughts on a provides killer validation to new willingness to take any franchise candidate with the rest of the team candidates. The next time you’re deal regardless of how far away it until they’ve had the chance to give tempted to sign a sub-par candidate is from headquarters, otherwise their opinion. You don’t want to just because you need to “sell” known as the shotgun approach. telegraph your opinion and make it a franchise, remember Pareto’s We recommend our clients develop uncomfortable for everyone else to Principle – also known as the 80/20 a small group of franchised units express theirs. And most of all, be rule. Your goal should be to spend around one central population careful about overriding your team if at least 80% of your time nurturing center first, and then work their they feel strongly about a candidate the great franchisees in your system way out as they grow. Not only does – positive or negative. Like I’ve said, and only 20% with those that just it keep support costs down early on, franchisee selection is as much an art don’t get it. Not the other way but it’s really more about turning as a science and it’s one of those areas around. that group of franchisees into brand of business where a consensus opinion fanatics that will help convince really does help ensure that you’ll get Go forth & recruit others to join and to be equally the best franchisees for your brand. Franchisee selection is an ongoing as positive about your brand. process. The four steps above could That initial tightknit group will Long view discipline certainly be expanded on, but the more likely quash any franchisee matters important takeaway is this – if negativity and, if they’re nurtured A few years ago, I was helping a you want your franchise concept correctly, will be there for you fledgling QSR concept launch a to see plenty of birthdays in the when the inevitable issues arise, or national brand. Prior to my joining future, take the long view and start concessions are needed. the project, they had sold franchises qualifying instead of selling. Do to just about anyone who showed complete and thorough research Flying by the interest. While I was able to get and due diligence on each and every seat-of-the-pants franchise growth headed on the candidate. And then only approve 4 So far, we’ve mostly dealt right path, the damage of a few of those that you think will work with you to take your concept to new with what you might call the ‘art’ those early deals had already begun of recruiting. Now it’s time for the to cause some serious problems. In heights. Here’s wishing you many 'science’ part. This is where you fact, one franchisee in particular happy returns. can and should create absolute, had become so caustic and negative unbreakable rules for your approval that we had to cease all recruitment committee that assures every efforts and go through the lengthy candidate is run through the same process of working him out of qualifying steps on the way to the system. It took a majority being approved. You need a system of our focus and not a small that is super strict and insures you amount of money to resolve. don’t ignore warning signs or let anything slip through the cracks. As much as a candidate might try to sell themselves to you, you simply can’t afford approving a candidate just because they were able to charm their way through the process.

Some of the specific steps are: • Invest in personality tests, credit checks and, if possible, ask about prior litigation. • Create a clearly-defined scoring

GLOBALFRANCHISEMAGAZINE.COM 53 BEHIND THE BRAND

AT A GLANCE CHOUPETTE: TM CHOUPETTE Established: 2011 Number of franchised outlets: 101 Location of units: Russia, USA, Franchise Switzerland, Abkhazia, Armenia , Ukraine, Kazakhstan, Kyrgyzstan. Investment range: 100, 000 € Contact: Anastasia Vasilkova +79037664544 / [email protected] in Style www.choupette.ru/en/franchise_ program

TELL ME ABOUT THE Anastasia Vasilkova, Business Development Director DESIGN PROCESS of TM Choupette Choupette has its own team of designers consisting of five people, located in Moscow. Each designer has his own area of responsibility ELL ME ABOUT WHAT MAKES THESE depending on season. We have YOUR PRODUCTS CHILDREN’S FASHIONS designers specializing in summer DIFFERENT? T Choupette’s products and winter seasons, and a special are for children from When we design our collections occasion designer. Our Bureau 0 to 12 years old and the matrix is we don’t look at children’s fashion has a collaboration with London rather wide: from baby nests, baby trends, we look at couture and Fashion Agency, from which we kits and special occasion dresses, to adults fashion trends. This is receive trends for two years ahead: what makes them so appealing to college uniform. We issue from 10 we select ones we would like to use children, who want to be like their to 12 collections each year, and also and adapt them to the tastes of parents and also their favorite have shoe collections, accessories different regions. For example, last fashion influencers. Choupette and underwear. Choupette is a shop summer we successfully launched a usually produces two different styles where everybody can find what they capsule collection for orthodox and each season: one casual, the other Muslim regions. want, whether for special occasions for special occasions. Choupette’s or everyday use. sophisticated styling has proven highly popular in Russia, Italy and Middle East, and other regions.

54 GLOBAL FRANCHISE | ISSUE 4.5 Behind the Brand - TMXxxxxxxxxxx Choupette

GLOBALFRANCHISEMAGAZINE.COM 55 GLOBALFRANCHISEMAGAZINE.COM Choupette is a niche brand which which is a niche brand Choupette proven itself in the has already offers very market. It international a at styles on-trend high quality, the and satisfies price reasonable the stylish demand for the new, WHAT MAKES THE MAKES THE WHAT CHOUPETTE BRAND A CHOICE FOR GREAT and the unique. A FRANCHISEE? training tool called Choupette Choupette tool called training we where – a platform, University and test our partnerstrain and weekly on a daily, their personnel prepare and monthly basis. We and then we materials all training exams.ask them to pass the There from formats, study different are tests,webinars and online to offline location also have seminars. We sessions and merchandise training Now format. in offline and online a new to announce we would like of supportingway our partners: we launch a new in August with our together pilot program business consultant international Business Choupette Irons. Lynn manager Coach provides an area all who will manage for the stores, basis. processes on a daily store TELL ME ABOUT THE THE TELL ME ABOUT TYPE OF SUPPORT AND YOU MENTORING OFFER and One of the main features of our franchise differences is the supportprograms we offer not partners.our franchise We only help them to find and open in the right location, a new store the right personnel and to source consulting, but we also support our partners within the whole period a have We of our collaboration. WHAT QUALITIES DO DO QUALITIES WHAT FOR IN AN LOOK YOU IDEAL FRANCHISEE? should be An idea franchisee not to invest dynamic, active, ready development only in the brand’s owner, but in himself as a franchise to develop as an entrepreneur. ready HOW MANY MANY HOW LOCATIONS DO YOU HAVE? 100 have We in locations and Russia neighboring countries such as Abkhazia, Armenia, Ukraine, and Kazakhstan, Kyrgyzstan also in Switzerland and USA, particularly in Los As Angeles. you in different stores can see, we have very all of them are and regions with our partnership.satisfied

“The offers brand veryquality, high on-trend styles at a reasonable price and satisfies the the demand for the stylish new, and the unique.” Two years ago, Choupette Choupette years ago, Two decided to show itself to the market and we international started Bimbo to participate Pitti at Clothing Childrens’ (International had We Italy. in Florence, Fair) very positive feedback, which the nextsuggested step should development. be international we launched our Therefore, expansioninternational program to adapt our concept to the market, renovating international more concept in little our store indicated Research than one year. Southernthat Europe, Middle East and Asia would be promising wanted to open a store markets. We and so prioritised the in Arabia, East. LastMiddle summer we had a proved us which trial in Dubai Mall, been welcomed right and we have to this market. I think we will soon announce our contract with Qatar partners, and with several other East. countries in Middle WHICH COUNTRIES DO WHICH COUNTRIES DO PARTICULARLY YOU YOUR WISH TO EXPAND IN? OPERATIONS HOW WAS THE BRAND WAS HOW WAS BORN AND HOW The was born as a brand Choupette to satisfy family business 12 years ago designer clothesa demand for stylish for newborns from 0 to 3 years old. reacted to market demand and We stylish creating expanded the range, up to 6, then 10 clothes for children and now 12 years old. The second big to open was step, in 2011, strategic is Choupette program. a franchise constantly growing and developing and looking for new directions. IT DEVELOPED? BEHIND THE BRAND Behind the Brand - Smokes Poutinerie International

AT A GLANCE SMOKE’S A Smoking POUTINERIE INTERNATIONAL Established: First location opened November 20, 2008 Success Number of franchised outlets: 150+ international sales of over 50 units so far Location of units: Canada, USA, Qatar (SOLD – Opening Soon), Hungary (SOLD – Opening Soon), Partner with Smoke’s Poutinerie franchise, and Austria (SOLD), Czech Republic (SOLD). Heavy interest in UAE, Kingdom of Saudi along with a popular fast food business, you Arabia, Kuwait, India and throughout Europe and the United Kingdom. get a license to entertain Investment range: $200-$400 US per unit, but all international deals are Multi-Unit/Area- Development deals with minimum five unit territories. ENTERTAINMENT! Minimum required capital: With a demographic $400 US per unit, but all international deals are Multi-Unit/Area Development deals comprised primarily of with minimum five unit territories, so $1M young-adults, Smoke’s required to secure Multi-Unit territories. Poutinerie is highly Contact: Mark Cunningham, Global Dominator motivated by [email protected] digital entertainment. Cell # 416.358.2780 Although the brand Ryan Smolkin, Chief Entertainment Officer is inspired by the ‘80s, [email protected] their presence extends smokespoutinerie.com itself through online engagement with fans and keeps them coming back “Smoke’s for more! The franchise owes its success to the Poutinerie is sheer power of the brand – the product is awesome, looking for locations have a fun, franchisees energetic atmosphere; this business is nothin’ but a who believe in the good time! moke’s Poutinerie brand and want to is the WORLD’S GLOBAL DOMINATION! be a part of LARGEST & ORIGINAL You will find ENTERTAINMENT S POUTINERIE! Founded in infused into everything the brand the family” 2009 by Chief Entertainment Officer, touches, including the people Ryan Smolkin, Smoke’s Poutinerie behind the magic. Smoke’s offers a unique menu focused Poutinerie is looking for exclusively on Canada’s national iconic franchisees who believe in dish – Poutine. The brand is known the brand, who want to be a globally for its WOW-sized portions of part of the family, and become fresh-cut fries, squeaky cheese curds an integral part of sharing and piping hot gravy, and adds fresh its unique brand and culture toppings to make over 30 variations of with the world! With 150-plus its famous dish. locations across North America and international expansion LUMBERJACK CHIC into the Middle East, Europe Beyond Poutine, the brand is known and the UK, the brand is for its ‘80s Canadiana culture, on course for GLOBAL signature lumberjack plaid, and DOMINATION! Be the glam rock music. Smoke’s Poutinerie next rockstar to jump on the is more than fries, curd & gravy. Smoke’s Poutinerie gravy train It’s a brand, it’s an experience…it’s and apply for a franchise today!

56 GLOBALFRANCHISE | ISSUE 4.5 GLOBAL FRANCHISE AUG ISSUE 24 master_GLOBAL FRANCHISE 01/08/2019 13:33 Page 57 INSIGHT Why a Copy-Paste Approach Won't Do Sanjay Duggal shows why in the franchising landscape of the United Arab Emirates, brand replication needs to be handled with care

WORDS SANJAY DUGGAL

few years ago, an his job in Dubai about five years ago. THE AUTHOR unusually succulent Reverse engineering Following some research, he decided Sanjay Duggal is Vice bun from South East Deconstructing the key President of Business A to invest in a cleaning franchise and Development for the Asia was introduced 1 components of a business by the beginning of year three, he Dubai based Middle to the UAE market. The franchised model and reassembling them was a bona fide millionaire. With East & North Africa concept was an instant hit, with tens under a new identity is what many Dirham signs in their eyes, two of Franchise Association of its branded stores springing up in copycat investors have sought MENAFA. As the only his close friends partnered to start a formal organization the country within a relatively short to do. But whereas the role of similar enterprise…and lost serving the $30 billion time span. behind-the-scenes factors like their shirts. franchise sector In their country of origin incisive leadership, a well-honed Diligent observers should have growing at a rate of however, the buns are far from risk appetite and sheer grit may known that cleaning is a brutally 27% annually in the region, MENAFA is a unique, with around half a dozen not be evident, it can be critical. competitive business, and that platform that actively other franchisors selling an identical The disparate success rate between their friend’s operations grew promotes the cause product. Curiously, their names are seemingly identical sweet bun exponentially only because of of franchising from almost identical too, with a minor franchises is a classic case in point. his extended networks in both sides of the play of words separating one from franchising divide. facilities management. www.menafa.com the other. Circumstantial Inspired by this spectacular benefit Good timing success, many regional investors 2 An acquaintance who worked can’t be copied hurried to woo those other bun for a major facilities management 3 Many franchise enterprises brands, whose offerings, by all firm for 23 years got retrenched from owe their exceptional results to accounts, were equally good, if not better. Long story short, they all failed. Spectacularly. When American Casual Dining brands first hit the UAE market to a frenzied welcome, onlooking investors drooled. Many made a beeline to franchisors for a piece of the decidedly lucrative formula of humungous mid-priced portions served in laid-back settings. However, most of the second wave brands couldn’t measure up to the performance of the earlier ones, and many had to cease operations within less than two years. A woeful number of such examples exist in the retail and entertainment sectors too. In fact, most attempts at blindly emulating others’ franchise success have visibly, and at times, miserably met with failure in the UAE. Here’s why:

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UAE.indd 58 02/08/2019 12:45 “It’s no secret that in a franchise agreement, the odds are rigged in the franchisors’ favour”

good timing. This includes the The reverse right concept, at the right stage holds true in the economic cycle, at the right 6 Just as mimicking another’s demographic inflection point. And success doesn’t guarantee your own, although good timing is usually drawing unwarranted conclusions attributed to strategic foresight, fact from failures can lead to missed is that it is often pure luck and that opportunities. Franchised concepts the same ideas just wouldn’t fly in that initially bombed don’t different circumstances. Those who necessarily imply an unfeasible boarded the UAE cupcake wagon concept. Instead, a failure might just relatively late and found it stalling be a way of simply learning ‘how shortly afterward will testify to that. not to do’ something. Submarine sandwich chains initially received Deceptive a lukewarm reception in the UAE, appearances where the Shawarma reigned 4 It’s no secret that in a supreme. Fast forward to the present franchise agreement, the odds are day and both co-exist and thrive. rigged in the franchisors’ favour. practices in ever Often investors find themselves in the middle of a development Tech evolution schedule that mandates, say five Technology is inseparable locations in four years. These 7 from business and franchising. openings must take place regardless With every new iteration there is a of the performance of pre-existing greater shift in the way strategies individual units. Also, it’s usually less are devised and transactions are damaging for a multi-unit franchisee conducted. The present rate of to continue with a sub-optimal progress is turbo-charged, and operation than to pull out of an it’s impossible to predict which agreement mid-stream. Regardless revolutionary development is of the backdrop however, the new right around the corner and will locations portray outward success change an industry forever. In such and inspire me-too investors, who circumstances, aspiring franchise frequently end up disillusioned. investors must keep a very keen eye on the tech world, where just a few Consumer trends missteps could destabilize an entire Be it shopping patterns, food franchise system. 5preferences or clothing habits, Success and failure may leave trends run for a measurably shorter clues, but those of any consequence time than before. The reasons for can only be unearthed through this may be too many to enumerate, diligent research and clinical but the underlying factor is that objectivity. In a world where change incessant change is the new normal, shows up at one’s door with little especially with the UAE’s propensity notice, the best bet for franchising to be an early adopter of latest success is original thought coupled practices in every field. with a hardy, shape-shifting Predicting longevity of trends is dynamism. That’s definitely what the therefore an exercise in futility, and UAE example points to. one might find that by the time an idea has been emulated, everyone else has already moved to the next one.

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UAE.indd 59 02/08/2019 12:45 INSIGHT OFF THE BEATEN TRACK Competition can be rife in countries with long-established traditions in franchising, so should you look at some less obvious locations?

WORDS BY BILL EDWARDS

60 GLOBAL FRANCHISE | ISSUE 4.5 hen we think of international franchise opportunities today we often think of Australia, Brazil, China, India, “There are more than W Mexico, the Philippines, the Gulf Cooperation Council countries in the Middle East, Indonesia, Spain, and the United Kingdom to name just a few. But there are other countries 495 franchises operating that can also make sense considering taking your franchise into. in Kazakhstan, making This analysis looks at key factors about a country that help decide whether this is the right country for your franchise to expand into. this the franchising The GlobalVue™ chart compares these countries to big, well- developed franchise markets. The brand chart shows the development leader in Central Asia” of major U.S. franchise brands into the countries to date.

Argentina Costa Rica Italy After 20+ years in the economic, Costa Rica takes second place within the In the past three years the number of exchange rate and political wilderness, Central American region and has seen franchisors grew by 15% with annual it is hoped that Argentina will now see a the greatest growth of the franchising sales of $268 billion (US$32 billion) new period of extended, stable economic sector after Guatemala. In recent years, or 1% of the entire Italian GDP. There growth. Structural reforms and business- there are 321 franchises operating here are 950 franchises in Italy, of which friendly policies and regulations should of which 245 (76%) were international 90% are Italian. Northern Italy has the result in good Gross Domestic Product brands. US franchise brands are well- highest concentration of franchise (GDP) growth in coming years. But established and well represented. The networks, primarily found in city the economy is fluctuating due to the Ease of Doing Business, and investment centers, commercial districts and government trying to overcome decades risk rankings for this small country are shopping malls. of bad economic policies. excellent. There is also a large US expat The best prospects are in food The President of the Argentine Brands retiree population that appreciates their franchising and distribution (3.5%), & Franchise Association stated that US F&B brands locations. clothing (7%), fast food and street U.S. franchise brands are currently very The retail sector predominates in the food (7%) and non-food distribution popular in Argentina. With an annual international franchises established in (5.9%). The U.S. is a leader in the sector growth rate of approximately 10 the country. Fashion brands ranks the Italian franchise market, with U.S. percent,franchising unit sales account for highest, with 32%, followed by the food companies ranking in first place approximately 2 percent of Argentina’s sector with 24%. Hotel franchises are among foreign firms. GDP. Currently, 90 percent of local third, with 14% percent of the total. franchises are of Argentine origin Most franchises are in malls and other Country population: 62,138,000 and approximately 10 percent are of commercial centers. Median age: 45.5 international ownership. This will change Exchange rate: 0.89 Euro per US$1 as the country opens back up again to Country population: 4,930,000 GDP per capita: US$38,000 (2017) foreign brand interest. Median age: 31 Exchange rate: 565 Costa Rican Colons per US$1

Country population: 44,300,000 GDP per capita: US$17,200 (2017) Median age: 32 Exchange rate: 42 Pesos per US$ 1 GDP per capita: $20,500 (2017)

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Country population: 3,753,000 Netherlands Median age: 29 According to ING Bank, the Netherlands is a Exchange rate: 1 Panamanian Balboa per US$ 1 particularly attractive market for U.S. franchise GDP per capita: US$24,300 (2017) systems looking to test the European market before rolling out to the rest of the continent. This is attributed to the openness of the Dutch towards new concepts as well as the PERU Peru has usually been the fastest-growing transparent nature of the market and the rules economy in Latin America over the past governing franchises. decade, with a 6% average annual growth The Netherlands also offers U.S. rate coupled with the regions lowest companies the advantage of being home inflation rate. Prudent macroeconomic to a population that is well educated and policies and structural reforms have boosted relatively fluent in the English language. Peru into middle-income country status and The Dutch market is considered saturated Kazakhstan slashed poverty in half from 56% in 2005 to in many areas, making it necessary for Perhaps surprisingly there are more than foreign systems to differentiate themselves 22.7% in 2016. In its Doing Business 2016 495 franchises operating in Kazakhstan, from existing franchise concepts. Master publication, the World Bank ranked Peru most of them located in Almaty, making franchise fees tend to be generally lower 50th among 189 countries. Within Latin Kazakhstan the franchising leader in than is typical for U.S. franchise brands. The America, Peru is ranked third. Central Asia. Kazakhstan is characterized clear majority of franchises present in the The franchise sector in Peru has 434 by a large number of franchisees Netherlands are Dutch (90 percent). companies, primarily concentrated in food working on the basis of sub-franchising services. 216 companies are foreign owned, agreements with master franchisees 81 by U.S. companies. The sector has grown Country population: 17,085,000 based in Russia, Turkey, or elsewhere. very fast over the last 10 years and presently Median age: 43 Only a few foreign franchisors work is growing around 20 percent per year. directly with Kazakhstani partners but Exchange rate: 0.89 Euros per US$1 their numbers are growing. Country population: 31,037,000 U.S. franchisors have developed well Median age: 28 in Kazakhstan, which include around Panama Exchange rate: 3.28 Peruvian Nuevo Sols per US$ 1 2000 franchised outlets. U.S. share is Panama is very receptive to U.S. style GDP per capita: US$13,300 (2017) the most significant in total franchising franchising. Recreation, entertainment turnover. Kazakhstani companies services, fast food, automotive and hotel have accumulated financial resources and motel franchises are readily marketable, that, combined with a lack of available as the local market demands better facilities New Zealand investment instruments, are stimulating and services. Key factors for market success The New Zealand economy has generally interest in franchising. Regional centers in Panama are high quality, customer service, offered political stability and solid financial of franchising in Kazakhstan are brand-name recognition and attractive performance in recent years. Franchising Almaty, Astana, Atyrau, Karaganda and packaging. U.S. products targeting the middle has become an important business model Shymkent. Major international brands are to upper-middle income market are usually in New Zealand. By purchasing a franchise, concentrated in Almaty and Astana. competitive. Panamanians have a penchant New Zealand investors take advantage of for high quality U.S. products. Consumers the benefits of scale offered by a larger Country population: 18,744,548 with high disposable income follow corporation such as brand recognition, Median age: 31 sophisticated U.S. and European consumption marketing, operations support and training. Exchange rate: 383 Tenge per US$1 patterns. Many high-end U.S. and foreign New Zealand boasts one of the world’s brand names are represented in Panama. highest per-capita ownership of franchises.

US FRANCHISE BRAND ARGENTINA costa rica italy kazakhstan netherlands new zealand south Africa panama peru thailand Century21® x x x x x x x x remax® x x x x x x x x x Anytime fitness® x x x x x burger king® x x x x x x x x x Carl's jr.®/ Hardee's® x x x x x domino's pizza® x x x x x x kfc® x x x x x x x x x x mcdonald's® x x x x x x x x x x papa john's® x x x x x pizza hut® x x x x x x x x x subway® x x x x x x x x x

62 GLOBAL FRANCHISE | ISSUE 4.5 projected 2019 gdp market size legal concerns for ease of starting a new countries/regions growth (customers) intl. brands business corruption index investment risk level overall country ranking usa 2 1 2 2 1 1 1.5 new zealand 2 4 1 1 1 1 1.7 taiwan 3 2 2 1 1 1 1.7 china 1 1 2 3 2 2 1.8 netherlands 3 3 2 1 1 1 1.8 costa rica 2 4 1 2 2 1 2.0 india 1 1 2 4 2 2 2.0 kazakhstan 1 3 2 1 3 2 2.0 panama 2 4 2 1 2 1 2.0 thailand 2 2 2 2 3 1 2.0 italy 4 2 2 2 2 2 2.3 mexico 3 1 2 3 3 2 2.3 peru 2 3 2 3 3 2 2.5 south africa 3 2 3 3 2 3 2.7 argentina 4 2 2 4 3 3 3.0

Overall Country Ranking: 1 is best, 2.5 is fair, 4 is worst - Sorted on Expected GDP Growth and Overall Country Ranking For Franchise Development In 2019 Sources: Deloitte, ‘Economist’, Economist Intelligence Unit, Heritage Foundation, World Bank, Fraser Institute, World Economic Forum, Euromonitor, U.S. Commercial Service, GlobalEdge®, Eules Hermes Risk Monitor. McKinsey, Freidman Report, Boston Consulting Group, GeoFutures, Overseas Private Investment Corporation, the 'Financial Times', International Monetary Fund, 'Foreign Affairs', EGS' GlobalTeam™ on the ground in 43 Countries.

Projected 2019 GDP Growth A GDP growth rate if 4%+ = 1, 2.5%-3.9% = 2, 1.0-2.4% = 3 and <1% = 4 arket Size ( Customers) This is a measure of the middle, upper middle and upper class consumers in a country Legal Concerns for Intl Brands '1' means low IP and legal risk. '4' means little chance of controlling the brand if there are problems Ease of Doing Business World Bank index of how easy or hard it is to start up and open a new business in a country Corruption Index Transparency International Corruption Index. The larger the number the more corruption and the harder it is to do business Investment Risk Level Ability to get cash out, make an acceptable ROI, treatment of foreign companies vs. locals Overall Country Ranking Average of all rankings above

There were 631 business format only around 12% of master licenses are total market value. The United States franchisors in New Zealand in 2017, up from international. High unemployment (25%), is the leader among international 446 in 2012. More than 124,200 people low new investment, corruption and franchises and controls 65 percent of the are employed directly in business format entrenched local brands are a challenge international market. Thailand’s growing franchises. Sales turnover for the entire for entering this market. affluence and the increasing popularity franchising sector was estimated at $46.1 of American products also enhance the billion. Seventy-two percent of franchise Country population: 52,842,000 growth potential for American franchises. brands originated in New Zealand. Median age: 27 Demand for American food franchises Exchange rate: 13.9 South African Rand per US$ 1 also exists among expatriates and tourists. Country population: 4,500,000 GDP per capita: US$13,400 (2017) Median age: 38 Exchange rate: 1.48NZ$ per US$ 1 Country population: 68,414,000 Median age: 38 GDP per capita: US$38,500 (2017) Thailand Exchange rate: 30.7 Thai Baht per US$ 1 The recent election should mean a turning point for local businesses to start investing GDP per capita: US$17,800 (2017) South Africa again in franchises. There were 550 franchise There are about 625 franchised systems brands operating in Thailand in 2017. That THE AUTHOR operating in the country that contribute around year the franchise market generated a total William Edwards, CFE, is CEO 12.5% to South Africa’s GDP. Food franchises of US$5.6 billion revenue with 95 percent of Edwards Global Services, Inc. (EGS). From initial global make up about 25% of total franchises. Several from local franchises and 5 percent from market research and country U.S. brands have made their entry in the last international franchises. prioritization, to developing few years, namely Burger King, Pizza Hut, Food restaurants, quick service and new international markets Krispy Kreme, Domino’s and Starbucks. casual dining have the largest market share and providing operational support around the world, Approximately 40% of franchises are of about 24 percent, while ice cream and EGS offers a complete international operations and development solution for franchisors based on located in Johannesburg and Pretoria, the beverage (including coffee shops) are experience, knowledge, a team on the ground in over economic powerhouse of the country, second with about 22 percent. Though 40 countries, and trademarked processes based on and of the African continent. Almost 90% international franchise systems are few decades of problem-solving. Contact Bill Edwards at of franchises are locally developed and in number, they control 60 percent of the [email protected] or +1 949 224 3896.

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How to Franchise in France It will surprise some to learn that Europe's largest franchise market is not Germany or the U.K. It's France.

WORDS BY JOHN GOODHARDT

rance” and • Food distribution (many of “entrepreneurship” are France’s leading hypermarket F two words that are not and supermarket chains generally associated. are franchised). So, while the arrival of Emmanuel So a strong franchising culture Macron and the successes of is present in France and from THE AUTHOR “French-tech” have somewhat a consumer viewpoint, with John Goodhardt improved the image of France as a a population that exceeds 65 heads up the Inter- business-friendly country, it usually national Franchising million, France is virtually in activity for Pro- comes as a huge surprise to learn a tie with the UK for second gressium, a leading that France is far and away Europe’s place in Europe in terms of both specialised French leading franchise market. population and size of economy franchise consultancy According to the French (Germany being first). and brokerage, with Franchise Federation, France offices in Paris and In terms of retail opportunities, Lyon. Working closely counted 2004 franchise networks France has 1,250 commercial with Farrah Rose in 2018, compared to between centers and retail parks, compared and Brian Duckett 950 and 1000 for each of the UK, to 1500, for the UK. Italy and of The Franchising Germany and Spain. These 2004 Centre, Progressium Germany come next with 860 and are also members of networks represented a total of 75K 800, respectively (Statista 2018). the Franchise Pool franchisees and total revenues of In France, as in most Western International network €62 billion. European countries, commercial of franchise brokers. Between 2008 and 2018, the centers and retail parks have total number of networks grew by progressively reduced the 63%, much of this growth coming importance of high streets in from the development of new the retail mix. The commercial service-oriented networks, both property market is dominated by a B2C and B2B, where France had number of major players (Altaréa traditionally lagged behind other Cogedim, Unibail, Klépierre, countries, notably the UK. Hammerson), many of which are French franchised networks hold present internationally. significant market shares in a wide Rental costs vary according range of sectors only one of which is to location and footfall, with the present internationally. largest commercial centers (Les • Fast food (with over 1200 Quatre Temps in La Défense, restaurants, France is McDonald’s Paris, and Part-Dieu in Lyon), largest market outside the USA) claiming 40 million plus visitors • Hairdressing and beauty on an annual basis. • Real estate Careful site selection and • Automobile services experienced lease negotiators • Fashion are key to obtaining the right • Household goods locations at the right price.

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How to franchise in France.indd 65 02/08/2019 12:46 ADVICEINSIGHT

“Careful site selection Causes for concern improved the ability of French Even once the potential of the business owners to manage their and experienced lease French market is understood, staffing in an effective manner. there are two factors that are negotiators are key often cited as cause for concern, The existence of franchising when international brands are 2 legislation. In 1989, France to obtaining the right considering bringing their brands introduced franchise legislation, to France: known as the Doubin Law. This is locations at the essentially consumer protection right price” The cost of labour and labour legislation, that requires a 1 protection legislation. There is franchisor to provide certain no question that the cost of labour specified minimum information to in France is significantly higher a franchise candidate, at least 20 than in the UK. In 2018, according days before the candidate makes to Eurostat, the hourly labour cost any firm commitment or transfers in France was €36, compared to any funds. Failure to comply with €35 for Germany and €27 for the this legislation can result in the UK. The principal cause of this contract becoming void, which in difference are high employment turn will entail compensating the taxes. Naturally, all competitors in franchisee in respect of the entry a given market will face the same fee and eventually, royalties. hourly labour rates, but it does Similar legislation is in force in the mean that careful business analysis USA and in five other European is necessary, when evaluating the countries – Belgium, Spain, Italy, potential profitability of Sweden and Romania. your franchise concept in the In reality, the existence of French market. franchise legislation only becomes Concerning labour protection, an issue if the franchisor fails to while the French situation certainly comply. If a compliant and well- presents less flexibility than the written disclosure document is UK (zero hour contracts are not provided to candidates, franchise legal for instance), recent changes legislation clarifies with certainty in legislation introduced by the the information that has been Macron government, have greatly disclosed, before the candidate enters into a contractual agreement. As such, a disclosure document can protect a franchisor from a franchisee acting in bad faith.

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How to franchise in France.indd 66 02/08/2019 12:46 Choosing your strategy it is frequently said, that 70% of all franchise strategy, whether Once a decision has been made decision-making takes place there. regional or national, develop a to enter the French market, it is In the end, the decision will depend master franchise business plan, of course important to select the on a number of factors, including including the way that sub- most appropriate strategy for the potential number of franchisees franchise fees and royalties will be your business. France is Western and the nature of your business. split between you and the master. Europe’s largest country, with an A road map for a brand wishing • Using the results of this business area 2.3 times bigger than the UK. to enter the French market could plan, determine the appropriate This geographical factor would look something like this: master franchise fee that will seem to argue for a regional master • Carry out a rigorous study of the meet your financial objectives and franchise approach, splitting France French market for your products provide an attractive potential into five or six regions. However, or services and assess the level of ROI to your eventual master. many brands prefer to look for a competition. This study will in • Prepare a disclosure document single national master franchisee, any event be required as part of compliant with the Doubin Law. for two reasons: the disclosure document that you If the objective is to find a master Firstly, in terms of managing will need to prepare. franchisee, this document (and a national network, the size • “Translate” your business model the master franchise contract) can factor is partly offset by France’s into a French environment, be in English but will need to excellent transport infrastructure, taking special account of local be translated into French if particularly the high-speed train rental and labour costs, as well you are pursuing a direct system (TGV). Impressively, since as pricing levels for comparable franchising strategy. products or • Have your disclosure document services. and master franchise contract “The Doubin Law • Identify any reviewed by a specialised French requires a franchisor to country-specific franchise lawyer. issues that To execute this road map effectively, provide certain specified may impact you will be well advised to work with the viability of a locally–based French consultant minimum information to your business in and a specialised French franchise France. lawyer, preferably with bi-lingual a franchise candidate” • Evaluate the competencies. And once these potential number steps have been completed, you will 2018, Bordeaux, which is 590 of franchisees, based on your require the services of a broker to kilometres from Paris, is only two home country experience and assist you in recruiting your French hours away by TGV! Lyon, Nantes the market data obtained for the master franchisee(s). and Strasbourg, all around 400 French market. kilometres from Paris, are also two • Determine your market-entry hours from Paris by train. strategy: regional master, Secondly, France has a very national master, direct centralised culture. The Paris franchising, joint-venture, etc. region represents 12 million people, • In the case of a master or 18% of the total population, but

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5 minutes with... RAY HAYS

This issue we meet with the founder and managing partner of FranLanch USA

IS A FRANCHISEE AN EMPLOYEE Ray Hays serves as the Founder a position as an international analyst OF THE FRANCHISOR? and Managing Partner of franchise for the U.S. Drug Enforcement management firm FranLaunch USA. Administration… with an annual “boots on the ground” to Ray is an international franchise salary of $18,000. Instead, I chose to implement the launch of a executive with a 29‐year track pursue higher-paying international franchise concept in the U.S. record growing and advising career opportunities in the private market, leveraging our seasoned franchise companies worldwide. sector, which landed me a job at franchise executive team and He has field experience in over 50 Choice and introduced me to the capital resources. This includes countries, including more than 30 franchise world. a wide range of franchisor new-country launches. Over his startup solutions, such as career, Ray served in a wide range GF: How did FranLaunch USA franchise sales and marketing of management and contracted come about? implementation, development of advisor roles across diverse RH: I spent most of my career franchise training and support, business categories in franchising. developing and supporting the as well as compliance with U.S. expansion of U.S. franchise concepts regulatory requirements working GF: What do you like so much outbound into worldwide markets. with our attorney partners. about franchising? However, about ten years ago, I began In addition to international RH: I am passionate about to notice many successful non-U.S. franchisors, FranLaunch USA international business, and brands expanding internationally, has recently attracted early-stage franchising is a truly global business and I asked myself, “Why don’t we see U.S.-based clients. To be clear, model. I’ve served as a manager and we are not consultants or brokers advisor for dozens of franchises, seeking transactional engagements. which have taken me to more than “I was offered a position as Instead, we focus on long-term 50 countries worldwide. I also partnerships with our clients, often love the wide diversity of business an international analyst for investing as minority shareholders concepts in franchising, which keeps in the franchise concepts that we a fresh perspective on every new the U.S. Drug Enforcement help to build. To this end, we also franchise project. work with financial services and Administration” investors, who offer seed funding GF: How did you get started to franchisor clients requiring in franchising? more of these international franchise additional capital to move to RH: After graduating from concepts coming into the U.S.?” As the next level. Georgetown University, I was hired I researched this more, I saw the as Media Relations Supervisor at the potential for international franchises GF: How do you think would other franchise headquarters of Choice to enter and grow the U.S. market, people describe you? Hotels International, responsible under the guidance of seasoned U.S. SS: People who truly know me for the franchisor’s international franchise professionals. This led me understand that I have a strong public relations. This kicked off my to set up FranLaunch USA to assist moral compass that puts people international franchising career. franchisors with all aspects of their above business. Whether dealing U.S. market entry. with employees, clients, vendors GF: Had you not gone into or partners, treating others with franchising, what would you GF: What services does it provide transparency, integrity and respect have done? to the franchising community? is core to my personal brand. When RH: A month before I accepted the RH: FranLaunch USA is a you treat people right, business job with Choice Hotels, I was offered management firm that provides success comes naturally.

70 GLOBAL FRANCHISE | ISSUE 4.5 PREVIEW

AT A GLANCE BUYBRAND FRANCHISE Your Entry to the EXHIBITION Where: Moscow, Russia, CEC Expocentre When: Russian Market September 18-20, 2019 Contact: Now's the time to register for September's 17th Victoria, [email protected] Website: BUYBRAND Expo International Franchise Exhibition www.buybrandexpo.com/expo in Moscow

ince its foundation in planned from investment companies, contracts, and find a source of 2003, BUYBRAND banks, brokers, trading platforms, inspiration for the development of S Expo has set trends in investment clubs and other their business. franchising development companies specializing in investment throughout the post-Soviet period. management and attraction. See you at BUYBRAND Expo 2019! During this time, the exhibition has The 'Franchising and Investments. been attended by 1,220 top global and Big ideas 2.0' International Business Russian brands and visited by over Forum will take place at the same 110,000 entrepreneurs and investors time as the exhibition, in the from more than 50 countries. Expocentre’s Pavilion 4. It will be dedicated to breakthrough ideas in Who is exhibiting? business and top trends, as well as to From September 18 to 20, 2019, showcasing tools and technologies in Moscow, Russia, around 300 that help businesses develop. companies, including concepts from Although franchising will be Great Britain, Malaysia, France, Italy, the all-round topic of the forum, Germany, Korea and other countries the program will be of interest will be presented at BUYBRAND to all entrepreneurs looking for Expo 2019. Included on the long interesting ideas, useful contacts, list of exhibitors are Copper Branch effective business tools and options from Canada, Southern Fried for investment. Chicken and ActionCOACH from Great Britain, L’Occitane and Who will attend? Guinot from France, MUMUSO It is expected that the exhibition and Ximi Vogue from Korea, and will be visited by more than 9,000 many more important names. investors and franchisees from all This year, visitors to BUYBRAND regions of Russia, as well as from Expo will have the opportunity to Kazakhstan, Uzbekistan, Armenia, not only choose a franchise and Georgia, Azerbaijan, Kyrgyzstan, find services for business, but also Belarus, Moldova, Eastern Europe, to explore alternative options for UAE, Israel and other countries. investment, as well as learn about The BUYBRAND Expo ways to attract capital into a business. international exhibition has become an iconic meeting place for the Visit Invest Village business community from around All this will be possible thanks to the world over the last 16 years. It is a new section of the exhibition, at BUYBRAND that entrepreneurs called 'Invest Village'. As part of learn about new trends in business the exhibition, participation is and franchising, conclude profitable “The program will be of interest to all entrepreneurs looking for interesting ideas, useful contacts, effective business tools and options for investment”

GLOBALFRANCHISEMAGAZINE.COM 71 INTERVIEW

learning. The digestible song lengths and accessible song forms, make learning music more attainable. A Franchise Rock’s universal appeal binds people together.

HOW INVOLVED DO Turned Up to 11 YOU GET WITH THE MUSIC SIDE? I have a remarkably strong team on the music side, so I usually just sit in the room and marvel. Where School of Rock has made music education hip and I have gotten active is in leading a boosted confidence and skills of kids all over America major reinvention of our curriculum, including proprietary content, tools, and beyond. CEO Rob Price explains how he came to be technology and pedagogy. My role helming his own dream business as CEO was to drive this innovation, but my teams were well equipped to build the music theory and technique infrastructure without my meddling.

WHY DID YOU FEEL IT NECESSARY TO LEARN GUITAR YOURSELF? Doesn’t everyone want to play guitar? I am a solid keyboard player, and an enthusiastic vocalist. I have had extensive training in both. I tried many times to teach myself guitar, with poor outcomes. Upon joining School of Rock, I had a great excuse to give it a try.

WHAT MAKES THIS AN IMPORTANT FRANCHISE TO HAVE IN THE COMMUNITY? First and foremost, I believe we bring communities a better mousetrap for music education. We observe that traditional music teaching has very WHAT DID YOU DO BEFORE WHY MAKE THE LEAP TO low retention. Schools are dropping BECOMING CEO OF THE WORLD OF ROCK? music programs at an alarming rate. SCHOOL OF ROCK? Ever since I heard Foreigner’s “Waiting When a School of Rock opens in a Prior to School of Rock, I served as for a Girl Like You” as a kid, I knew I community, there is a reliable place President of Edible Arrangements and wanted to make the leap from classical and time-tested method to create Chief Marketing Officer at CVS Health. piano training to popular music. I musicians. Just as importantly, since I also held executive roles at Wawa Food begged my parents for a synthesizer we teach music through performance, Markets and H-E-B Grocery. I also and saved for a couple of years to earn our kids learn as much from their have an MBA from Harvard Business it. I joined bands, wrote music, played bandmates as they do from their School and BS in Applied Economics out whenever possible. instructors. Of course they learn from Cornell University. For a couple of technique, timing and tempo. But years, I was a visiting professor at the AS WELL AS YOUR something magical happens when University of Pennsylvania’s Wharton BUSINESS EXPERIENCE, a bunch of kids are working on a School where I taught MBA students DID YOU BRING A Beatles show for 10 weeks. They learn retail strategy. I have also enjoyed PASSION FOR ROCK to collaborate, negotiation, resolve learning about the intersection of ‘N ROLL? conflict, and many other “executive” business, government and society as I have a passion for all music, but rock skills. We make musicians, but we a Henry Crown Fellow and Richard is special. It is made for ensembles also help kids develop profoundly Braddock Scholar at the Aspen Institute. and facilitates performance-based valuable life skills.

72 GLOBALFRANCHISE | ISSUE 4.5 discovered and signed. Watch out for Doll Skin, Hippo Campus and the Regrettes. We have gear partnerships with Hal Leonard, Fender, Zildjian, Roland and many others. We work closely with Berklee College of Music to provide special opportunities with our professionally-directed students. What I am more motivated by are the thousands of stories of personal transformation that I hear. I have visited nearly 200 of our schools. Each visit, I hear stirring accounts of triumph which our team helped make happen. Stories of kids who found a home in our community after being bullied relentlessly, of students who struggled with eye contact, or confidence, who now can play to an arena. Stories of young people who were so stricken with anxiety and depression that their lives were at risk. These are the successes that matter. WHAT’S ITS APPEAL we also value executive experience FOR STUDENTS? in other complex businesses. “Something magical With our method, students have the Having strong operations talent, positive reinforcement of learning and a network in the local music happens when a bunch to play real songs very soon. We and entertainment sectors is very of kids are working on a sneak the theory in. They also have important. We will look for a master to the thrill of delivering their seasonal operate at least 1-2 units themselves, Beatles show for 10 weeks” performance as a gig, not a recital. We as we do corporately. We think this aligns interests with the secure real venues, with real gear and IF READERS ARE sub-franchisees. students have an amazing reward for INTERESTED IN their effort. Our students can travel PARTNERING WITH THE the globe for School of Rock exclusive HOW IMPORTANT IS THOROUGH SUPPORT SCHOOL, WHO SHOULD performance opportunities, including THEY CONTACT? venues like Lollapalooza, Bonnaroo, OF FRANCHISEES? Our Chief Development Officer is Rock in Rio and many others. We have completely rewired how we Tony Padulo, who will be excited support our franchisees. Our training to hear from you. He can be AND FOR FRANCHISEES? has been redesigned. All manuals reached at apadulo@schoolofrock. Franchisees have the opportunity to have been updated and strengthened. com. Check out our website, blend their commercial interests and We have a team dedicated to new schoolofrock.com. their passions. A few of our owners schools, to make those pre-opening are or were professional musicians. months, joyful and productive, not All of them are passionate about terrifying. We have relaunched our music. Add in the chance to change intranet, turbocharging the assets lives, which happens everyday, and available for franchisees and their you have a formula for gratification teams. We have an always-on channel far beyond most franchises. Our of communication with our whole concept is medium investment, with community leveraging Facebook’s little technology and no supply chain Workplace tool. Of course, every challenges. For many, this owner has my cell phone number and is very appealing. can call or text me at any time.

WHAT ARE YOU LOOKING WHAT SUCCESS FOR IN MASTER STORIES CAN FRANCHISEES? YOU TELL ABOUT We seek experienced, and capitalized SCHOOL OF ROCK? business people. Existing franchisees How many pages do I or operators of multi-unit retail, get? There are the success foodservice, services and hospitality stories, like former school systems would be best equipped, but of rock kids getting

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Going up in the world?

Picking the right time to take your franchise to international heights is vital, says Tipton Shonkwiler

WORDS BY TIPTON SHONKWILER

THE AUTHOR hen growing your into account different laws, for scaling capabilities. Tipton Shonkwiler franchise brand, some customs, foods and interests, all In this article, we will discuss is the International of the most challenging while still maintaining a cohesive how to find the right country for Director and Executive W Vice President for tasks can be not only brand image? expansion, how to localize your UFG. He has been finding your target demographic Despite these challenges, franchise, and the benefits of having with United Franchise and evaluating competitors, but international franchising has many master franchise partners. Group for the past all of the regulations and laws benefits that outweigh any extra 17 years serving in multiple capacities, surrounding franchise licenses as efforts. By taking your franchise Finding the right country including leading UFG well. These hurdles can be international, you can for your business brands, along with more easily researched and reduce your dependence on When getting started with sales and operations. conquered when expanding US demand and focus on international franchising, companies As International in your backyard, but growing new revenue need to do their due diligence and Director, Tipton is responsible for the venturing overseas and profit centers across evaluate which countries make the overall global growth is a whole new the globe. Expanding into most sense for their brand. and expansion ballpark. How foreign markets requires For example, if you are an in-home for UFG brands, do you take minimal investment and care franchise, expanding into especially Venture X. Tipton is a Certified offers great potential Asian countries may not make Franchise Executive sense due to their vastly different views within the Inter- on senior care. national Franchise When we first began expanding Association, he has 25 Venture X internationally, we started years of franchising experience and holds in countries similar in culture to the a Franchise MBA from United States such as Canada and Nova Southeastern Australia. This strategy is a great way University. to ease your way into international development and use this as a ‘test’ for more diverse markets. “Plus, we understood the way people work and how companies operate is changing across the globe,” said Jason Anderson, Venture X brand president. “With the rise of coworking spaces, traditional office space won’t exist in 10-15 years and this is a trend we are seeing on global scale.” One of the first things you

74 GLOBAL FRANCHISE | ISSUE 4.5 should research is the economy and your brand. In international master this skill is by working with regulations of the market. Look for development, this is a key area to master franchise partners. stable economies that are in position focus on – all while retaining a for growth. You should also ensure the cohesive feel to your US locations. Mastering the master market has business-friendly policies Certain brands have done this franchise partner in regards to helping business startups. exceedingly well. For example, When expanding into international markets, you may worry about your new overseas locations “By taking your franchise and how everything will remain managed when it’s not easy to international, you can reduce physically check-in. This is where your dependence on US master franchise partners come in. A master franchise partner demand and focus on growing is typically a native of whatever country you are developing new revenue and profit centers in and will have a better understanding of the political across the globe” and legal business landscape. Foreign master franchisees A market with too many regulations McDonald’s has taken its successful normally will acquire a large, can slow down your growth and be international menu items back home geographic area and sometimes startup prohibitive. Additionally, to the United States to connect even an entire country. This allows you will want to ensure the market its restaurant globally and create them to act as a sub-franchisor is one where you can establish the mutually-successful partnerships. of your company where on top needed foundation for building your In every market we expand in for of opening their own franchise franchise, such as having needed Venture X, we look to adapt some locations, they will then sell vendors and suppliers. aspects to the local community to be franchises to other entrepreneurs Some of the best research you can more culturally accepting. We like in the territory, collect royalties, do is visiting the country yourself to call it “tropicalizing” to the local train new franchisees and oversee to evaluate these different criteria. market. This includes adapting to all additional matters. This system Make a trip to your desired market various cultural terms – the United allows the master franchisee to get a feel for the culture, talk to States calls us ‘coworking’ while the to focus on working in the local business owners and see what United Kingdom may call us ‘flexible country and handling day-to-day other brands exist and are doing well workspaces.’ This can also include operations, all while you focus in the area. This will also allow you adding elements or products to on your brand’s higher-level the opportunity to determine who, if our brand offering such as interior growth strategy. any, in the market is doing something décor items from the region, or To ensure the brand is staying similar to the service your business local food selections and snacks for connected across the globe, make provides. This will help you make the our members. sure to check in with your master final decision on whether or not you Allowing your international franchise partners on a regular should expand into said market. franchisees to have this room to basis through your support adapt is key. You want to bring your services and visit their operations Localizing your franchise unique service to new communities, whenever you can. This will allow One of the biggest struggles between while still making the population feel you to still have a pulse on the a franchisor and franchisee can be at home and show you’ve done your brand and make sure that even how much freedom research into their wants and while localized, you are properly is granted in needs. One of the best positioning the brand image in localizing ways you can your new country.

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Are You Experienced? Is previous sector experience a prerequisite when buying a franchise? Or will a detailed operations manual and watertight franchise model suffice?

WORDS BY MATTHEW JONAS

THE AUTHOR Matthew Jonas is the president and co-founder of TopFire- Media, an award-win- ning, public relations, and digital media agency specializing in franchise marketing. As one of the premier full-service marketing agencies in North America, TopFire Media expertly blends the best in marketing and digital lead generation strategy to engage any audience, in any industry, on the value of nuanced branding, storytelling and strategic, data-fueled marketing to grow a business. www.topfiremedia. com twitter: www.twitter.com/ TopFireMedia here’s an old adage Trust the process daily job duties, disciplines of this facebook: www. that says “do what of evangelism school of thought argue that a good facebook.com/ you love and you’ll On one end of the spectrum, some franchise system requires little to no TopFireMedia T love what you do.” anti-experience evangelists within experience because a franchisor will When it comes to franchising, the franchising industry espouse the provide the franchisee with all the this sentiment is a great way for idea that experience doesn’t matter tools and training necessary to run potential franchisees to begin because franchise systems inherently the operation. the lengthy franchise exploration provide just that – a system. By In fact, some within the franchise process. But passion is just part providing an extremely detailed community might even argue that of the equation when it comes to operations manual suite that often less experience in an industry is finding the perfect franchise match. outlines even the most tedious better. The thinking here is an In addition to exploring industry trends, identifying current and local market conditions, and finding a “A potential franchisee with franchise that realistically fits one’s budget, there’s also the question of limited experience may find franchisee experience level and how much experience a franchisee needs success in a fast causal or within a particular industry to find quick service restaurant” success within their local market.

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inexperienced franchisee is blank end of the spectrum, a full-service the franchisee’s ability to market as slate and doesn’t have any pre- restaurant franchisor will likely widely as the franchisor intended. conceived notions or bad habits that assume that his or her franchisees In this scenario, a boutique gym are in conflict with the franchisor’s understand the general nuances of would be a far better fit for the operating procedures or brand working in a restaurant. potential franchisee because he or standards. In theory, the franchisee While a franchisor can provide she would be more familiar with would learn the franchise system a detailed menu specifications the specific operations and clientele in the purest way possible – as the manual, they generally do this of the franchise. Boutique gyms, franchisor intended it. with the assumption that the such as kickboxing studios, MMA franchisee knows how to operate gyms, indoor cycling studios, and Experience (medium) industrial kitchen equipment other sport-specific facilities, are matters and understands the ebb and often a good choice for franchisees On the flip side, many franchisors flow of restaurant volume and is with limited or very specific prior will argue that experience does capable of adjusting accordingly. experience. Aside from their indeed matter (although to what (And that’s before even dealing specific nature, they’re also rarely extent will always be up for with the alcohol licensing and in competition with “big box gyms.” debate.) The main theory behind bartending operations.) Most For these and other niche franchise this more widely-accepted theory franchisors would be hesitant to systems, relevant prior experience is is that while quality systems may bequeath a full-service restaurant of great value to the franchisor and exist, the franchisor generally franchise to someone with no the franchise system as a whole. makes assumptions about his restaurant experience. (That said, or her franchisees’ existing level they may also be hesitant to grant Regulations still rule of knowledge. For example, a a franchise to someone who has Additionally, some franchise franchisor would assume that a thirty years of experience running systems may require special potential gaming café franchisee their own restaurant as they might licenses or certifications. No would at the very least own a be less coachable). matter how passionate a potential video game console and a fitness However, a potential franchisee franchisee may be about home franchisor would assume that with limited experience may find improvement for example, the potential franchisees have gym success in a fast causal or quick fact of the matter is that many membership cards in their wallets. service restaurant or even a food states have strict regulations when truck. This is because the system, it comes to performing certain Experience is not equal equipment, and menu items are types of activities. As more home However, the experience threshold generally less complex and can be and business owners look to differs greatly across franchising more quickly learned than in a full- renovate buildings, residential sectors and even within those service restaurant. and commercial repair and other sectors’ sub-sectors. The restaurant The same idea holds true within remodeling franchises have sector is one of franchising’s largest the fitness sector of the franchising experienced tremendous growth. and most profitable sectors, with industry, another one of franchising’s But many of these concepts are approximately 275,000 food and most profitable and growing sectors. required to have at least one beverage franchises currently (Gym and fitness franchises in the owner of the business be a licensed in operation. Food franchises United States account for a $4 plumber, electrician, or contractor. account for 36 percent of the billion annual revenue dollar slice Home healthcare is another establishments and 48 percent of of the overall Gym, Health and franchising sector that is expected the annual financial output of the Fitness Clubs industry pie, which is to continue to grow over the U.S. franchise industry. However, estimated at $34 billion.) A former next decade and will have wide not all restaurants are created equal professional boxer or mixed martial appeal to baby boomers entering and therefore, equal experience is arts athlete may be a subject matter retirement years. While this type not required. expert on his or her particular sport, of franchise is appealing to many The franchising sector can but have limited experience when due to its relatively low overhead, roughly be divided into several it comes to operating a general gym insurance companies often require categories: full-service restaurants, with traditional gym equipment certain supervisions by a nurse, fast casual restaurants, quick serve, (treadmills, ellipticals, etc) and doctor, or other licensed healthcare limited menu restaurants (sandwich may not be as used to its customer provider. Additionally, as marijuana shops, ice cream shops, coffee/tea base. This situation could not only legalization spreads, grower and cafes, gourmet bakeries, etc), and interfere with daily operations and product regulations are going to more recently, food trucks. On one customer interactions, but also limit need to keep pace with industry

“Some within the franchise community might even argue that less experience in an industry is better”

78 GLOBAL FRANCHISE | ISSUE 4.5 demand. Therefore, the hurdle of particular skill sets such as marketing, for potential franchisees as they go getting licensed or certified (or, in networking, recruiting, and more. through the process. the healthcare field, even attending Before deciding what kind of Selecting the right franchise medical or nursing school) is franchise interests them, franchisees system is a balancing act that a barrier to entry that must be need to perform a realistic self- involves weighing and prioritizing identified sooner rather than later. assessment of their own skills and multiple factors and ultimately identify not just their professional finding a franchise that is in Beyond the resume strengths and weaknesses, but their alignment with a franchisee’s Another experiential factor extends personal ones as well. personal and professional goals as far beyond potential franchisees’ For example, retail businesses rely well as their local market conditions. former job titles and addresses their not just on a franchisee’s ability to Another adage that applies soft skills. Has a franchisee ever provide niche products to franchising is that it can be

RESUME

compared to a been in charge of that cannot otherwise be marriage. It’s not supervising people? If so, how purchased locally or online, but also wise to rush into a many? Have they ever done social quite heavily on quality, personalized franchise partnership media marketing? How much do customer interactions. While most any more than it is wise to rush into they know about liability insurance? people can easily memorize product a marriage. The franchise “courtship” Are they comfortable at professional specifications, features, and benefits, period is a time for franchisors and networking and community events? a retail franchisee should ideally franchisees alike to do their research, Have they shown that they can take have a strong sales and customer conduct discovery days, and ask direction and constructive criticism service background. the hard questions. For franchisees, in past positions? Do they want While there is no formula that will these questions are not not just for guidance or are they more infatuated predict with one hundred percent the franchisor, but for themselves: with the idea of “being their own accuracy the level of experience Does this match my experience? boss?” Experience often dictates not needed to turn a profit and run Do my skills align with the system’s just an individual’s technical skill a successful franchise business, ideal franchise candidate? What do set, but also provides the basis for experience is indeed an important I think will be my biggest obstacles developing certain strengths such as factor that franchisors consider and do I think I can overcome them? interpersonal, organizational, and when accepting a franchisee and Most importantly: Is this truly right time management skills, as well as it should be a key consideration for me?

GLOBALFRANCHISEMAGAZINE.COM 79 AWARDS 2020

ENTRY TO THE GLOBAL FRANCHISE AWARDS OPENS LATER THIS SUMMER

THE GLOBAL FRANCHISE AWARDS ARE NOW FIRMLY ESTABLISHED AS THE MOST PRESTIGIOUS AWARDS IN THE FRANCHISING CALENDAR

The Awards will be presented at IFA in Orlando, FLA, in February 2020.

Last year's Awards reached over 350,000 industry members. Don't miss out on a fantastic chance to bring your international brand the global recognition it deserves!

WWW.GLOBALFRANCHISEMAGAZINE.COM/AWARDS

Awards House Ad.indd 32 02/08/2019 12:48 INSIGHT

How To Make It Happen Anywhere Just because a brand prospers here, it doesn't follow that success abroad is a given – far from it. However, your chances will be higher if you implement these six tips.

WORDS BY TOM DUFORE

uccess is a tricky word. Strategically plan entry goals cannot be established and THE AUTHOR It means different Strategic planning is a key pursued until the vision is clear. Tom DuFore is the things to different component of any successful Once vision is established, all CEO of Big Sky S people. The levels viable data needs to be gathered, Franchise Team and is business model and one that goes a franchise consulting vary greatly and the ladder to hand-in-hand with consulting and organized, and analyzed. This will expert having served hitting success depends on the coaching, as those resources are enable the company leaders to in multiple capacities company’s goals and vision. The generally the tools that will help formulate a strategy to implement as a franchise consult- good news is that there are several moving forward. It is important to ant, franchisee, and solidify the concrete details of a franchisor since 2003. key components to success that strategic plan. This type of planning note that strategic planning does Tom has an MBA and any business in any industry can taps into the very core of a business. not end with implementation. is based in the use and recognize, even when Clarifying the vision of the business Consistent evaluation is necessary to Atlanta area. Big Sky Franchise transitioning a successfully is the first step. Just as a runner maintain the ability to withstand the Team is here to be franchised brand to an entirely new needs to have a good grasp of the ebbs and flows even the most stable your guide and make country or region of the world. path to take to reach the finish line, markets will face. the franchise process less complicated. We help you organize, document, and market your business. Grow your business and share your success with others at the same time. Call 855-824-4759 for your free franchise consultation or visit: www.BigSkyFran- chiseTeam.com.

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resources from experienced the contrary. The most successful “Strategic planning is and reliable professionals is business professionals understand an incredible asset, especially that their biggest asset is the a key component of during a transition into a new knowledge and experience they any successful business market. A good consultant, surround themselves with. Their lawyer, and business coach can “brain trust,” as some call it. The model and one that help target specific goals, evaluate age old saying, “You don’t know performance, and offer tools for what you don’t know” still holds goes hand-in-hand learning and development that true today. There is value in finding will improve the overall health the right franchise consultants and with consulting of the organization. All of these business coaches, the real challenge resources are incredible tools to comes when you have to decide if and coaching” increase business performance you are going to listen and utilize and productivity and, ultimately, their recommendations. Analyze the competition increase revenue. Before transitioning into any Established consultants, lawyers Local agencies new market, it is imperative and coaches are typically resident and government that the competition be properly experts in their field and can help As with any expansion into analyzed, regardless of the size you navigate the potentially murky unknown territories and regions it is of your franchise in your current waters of franchising in a new important to connect with the local market. The biggest mistake you international market. Bringing governments and agencies which could make is evaluating and in outside resources is not a sign help with these types of expansions. then disregarding competitors. of weakness or lack of ability or Check with your home country Remember that these competitors industry knowledge. Rather, it is to see if they have an embassy or have found some sort of success and stability in that market already. Learn from them. Figure out what they are doing right, how they are relating to their customer base, and how those measures can be integrated into your current model. Conversely, try to discover what they are doing wrong or inefficiently and perfect it in your model. Analyzing the competition will enable you to find and fill service or product gaps in your market and it is easier to accomplish than in years past due to the rise in social media and other online sharing platforms. Competitor service offerings and the level of consumer satisfaction can be compiled through internet searches and from any number of reputable platforms and used to evaluate weakness in the market that your business could then fill.

Utilize valuable consulting, legal, and coaching resources Utilizing consulting, legal and coaching

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Make it Happen Anywhere.indd 82 02/08/2019 12:49 international delegate to help with would be best suited for reach and as creating brand awareness the transition. There are many engagement. Clear and defined requires forethought. Buying resources available for you to use objectives, along with source and random ad space may give short in helping you get acquainted more advertising strategies will help spurts of increase in sales, but quickly with the local community. determine optimal avenues for every business needs to establish These agencies and programs are the pre-established target market. and maintain high quality and often times setup to help support Following implementation, on- consistent messaging. This is what you with these types of efforts. They going evaluation of strategies is will promote on-going, long-term will help you comply with local laws necessary so that adjustments can success and reduce the risk of blow and requirements for operating and be made as needed. When it comes back for low quality or hastily done may even be able to connect you to marketing, a best practice is to advertising placements. In this with local suppliers and vendors. plan ahead, as opposed to being new social world of oversharing, reactionary to items that may come potential customers consistently Customize local up unexpectedly. Many industries self-advertise their wants and needs marketing plans also institute pre-planned without the slightest hesitation. Marketing, like any other major emergency management procedures Utilize that information and component used for business to mitigate potential areas of include it in your marketing plan. growth, should be strategically risk. This allows the business to planned and implemented with maintain a modicum of control Keep a close eye an end goal in mind. There are should potentially negative issues on financials several key components to building arise in the public arena. Keeping your financials in order a marketing plan. Analysis is Even something as simple and reviewing losses and gains needed to determine target more frequently than you normally markets and which platforms would will give you a solid idea of market trends in the area and where adjustments need to be made. Transitions can be challenging and costly, so keeping a firm hand on expenditures will better enable your model to survive the move and work towards thriving in the new economy your brand has expanded into. Financial stability is a balancing act that takes time. Simply choosing not to spend is never an option, especially when entering a new market. The key is understanding; being selective about where each dollar goes and understanding the rate and potential for return. Instead of telling staff not to purchase the gel pens because they run a little higher, institute reliable measurements for performance evaluation to ensure that each staff member has the tools they need to work at their highest level, with their favorite gel pen if necessary.

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A Child's Guide to International Franchising

As one children's franchise readies itself for international expansion, the brand shares the processes involved

WORDS BY SARAH BEATTIE

he Children’s services Ensuring a robust its growth expectations in the sector of the franchise business in the UK UK and internationally in terms T industry is thriving 1 This encompasses: of the finances, people, skills, and lends itself well to • A clear market proposition infrastructure and technology. international expansion. Children are which is proven to appeal to Research sources of potential increasingly global customers and the target market funding and financial assistance parents in the developed world desire • A track record of financial stability through the local business high quality service providers to care and growth for the franchisor and support services. THE AUTHOR for, teach and entertain their children. Sarah Beattie is its franchisees Managing Director of Children know what they want and • A reputation for quality and Analysis Fun Fest Holiday Club, what they like and are not afraid consistency within the industry. Your local Department of Trade Ofsted registered to tell you! Franchises operating Awards, accreditations and 3 and Industry offers a ‘Passport to childcare which offers in this market have to be lithe and Export’ service which analyses the main children a choice membership of professional bodies about how they spend responsive, keeping up with trends help to establish this characteristics of countries around the their holiday. With and offering well-thought through • Proven franchise systems and world in terms of demographics and a menu of exciting solutions to families’ needs. support mechanisms culture. This enables you to identify the activities each child Having established a unique • Franchisees who are passionate can design their own child-led position in the holiday individual holiday ambassadors for the brand and programme. URL: childcare market in the UK, Fun the business www.fun-fest. Fest Holiday Club is preparing to co.uk/global/ expand internationally by taking the Establishing a following steps: framework 2 for growth Consider what needs to happen for the business to be able to support

84 GLOBAL FRANCHISE | ISSUE 4.5 countries which most closely match needs to be trained as a franchisee and this into a global context. If domestic your key criteria so that you can start as a franchisor as they are granted the growth has been achieved by exhibiting at your journey with the greatest chance right to sell franchises in the country. trade or franchise shows, targeted PR, press of success. This tends to work well in large advertising or digital marketing, then your countries similar to the UK which are experience in these disciplines will help Research familiar with the franchise model. Area you to achieve results in other geographies. Compile a SWOT analysis for development offers a single operator In addition, keep abreast of international 4 these countries by investigating the right to open multiple locations trade missions run by the local chamber of relevant cultural customs, regulatory themselves and so they operate as commerce or other organisations supporting bodies, the competitive landscape, a franchisee with a country as their British businesses to export. International franchise awareness and any other territory. consultants and brokers can be engaged if legal, political or geographical factors you wish to delegate more of the process. that could impact your business. This Prepare a rigorous will enable you to make educated and recruitment process informed decisions as the process 7 Decide upon the personality “International moves forwards. and skills that you require from a master or area franchisee and devise consultants and brokers Expert advice a rigorous recruitment process The advice of someone who has which tests those desired traits. Any can be engaged if you 5 experience of your industry on an established franchisor recognises the international level is invaluable as they importance of recruiting franchisees wish to delegate more can guide you safely around the pitfalls with the right skills and mindset and of the process” which the unsuspecting may fall into. A this becomes even more crucial when mentor may already be available or you they are responsible for the success of can engage a consultant with relevant your international expansion. Adapt experience. It is worth contacting local As a franchisor it is usual to universities and other organisations Consider the 10 develop rigid systems and which support businesses in your area valuation processes to ensure that customers in the as many offer free courses and support. 8 What price is fair for the UK have a consistently positive experience master or area franchise as well of your brand. Whilst these will help you Identify desired as ongoing fees? Consider the expand your business model into another structure for potential of the area but also country, it is important to recognise when 6 expansion be careful not to underestimate to allow some flexibility in response to local There are two main options to the time and energy required to influences to enable it to reach its potential consider; a master franchisee or an complete this process or the value in a different market. area franchisee. A master franchisee of your brand and business model. The process should not be rushed as it will take time to prepare thoroughly Action Plan for international expansion but you Having completed the need to be able to identify 9 preparation, it is time to make and capitalise on an an action plan. Consider what has opportunity when it worked well in the UK and translate presents itself.

GLOBALFRANCHISEMAGAZINE.COM 85 BEHIND THE BRAND

AT A GLANCE N-HANCE WOOD Franchise REFINISHING Established: 1987 Number of franchised outlets: 550+ this Winning Location of units: Canada, Australia, USA, New Zealand, South Africa, Lebanon Investment range: $200K to $1MM Minimum required capital: $400K Contact: +1 616 560 8686 or Concept [email protected] www.nhanceinternational.com, www.nhance.com Leading wood refinisher N-Hance is now welcoming In 2001, we recognized the huge approaches from dynamic franchisees, and from market for refinishing wood floors and cabinets, so N-Hance was born. master franchisees interested in joining this In 2006 we launched N-Hance on company’s rapid expansion a national level. Since then, our growth expanded into Canada in 2008, and we expect to continue to -Hance Wood Master Franchisees who want grow and develop our methods. Refinishing is the to bring a successful and proven Our services are great for anyone N world’s largest Wood American franchise brand to new on a budget, looking to spruce up Refinishing Franchise Global Markets. their living space, welcoming a with over 500+ franchises open N-Hance Wood Refinishing much-needed change, or anything in the U.S. and also several is the #1 choice for refinishing in between. We offer a great service international countries. N-Hance cabinets, hardwood floors, and opportunity for home and is poised to become one of the furniture, and other wood surfaces. property owners to refinish the prestigious brands in the $538 As an N-Hance master franchisee, important wood furnishings they billion global home improvement you’ll offer your community and utilize every day: industry. Led by an executive customers something no one else • Cabinets team that has helped Chem-Dry can: beautifully restored cabinets • Floors Carpet Cleaning become the and floors at a fraction of the • Furniture largest-growing carpet cleaning cost, in a fraction of the time; in • Moldings franchise in the world, N-Hance addition, we now offer traditional • Doors, interior / exterior is actively looking for savvy sanding and restoration, so you • Fireplace Mantels meet both the limited budget and • Stair Rails / Spindles traditional customer’s needs. • Cabinet Door Replacement Master Franchisees control • Granite Polishing the rights to the franchise in a specific country or region. Master N-Hance has their headquarters Franchisees recruit their own in Nashville, Tennessee. N-Hance sub-franchisees and operate as the has full-time chemists working franchisor in that region, along with in our laboratory to innovate targeting the marketing, branding and engineer our products and and social media presence. services. We manufacture all of Becoming a N-Hance Master our own products, which means Franchisee is in essence being the our solutions are proprietary to Franchisor for your country. your business. We know franchising. We started Our Master Franchisees have a Chem-Dry, the world’s largest truly meaningful role in their carpet cleaning company over 30 countries – not only do they years ago and last year received provide their local community Franchise Global Magazine with well-paid employment Franchise of the Year Award. With that requires skill, attention decades of franchise operations to detail and good customer support and leading R&D, we stay service, they also provide the ahead of the game in our industry. home and property owners

86 GLOBAL FRANCHISE | ISSUE 4.5 Behind the Brand - XxxxxxxxxxxN-Hance Wood Refinishing GLOBALFRANCHISEMAGAZINE.COM 87 GLOBALFRANCHISEMAGAZINE.COM One advantage of being of being One advantage The potential for growth is The of completely days gutting a fairly new company is the is the a fairly new company opportunity for growth. huge The global market is prime for development with very few an expertisecompanies having on a regional in wood restoration Our wide array level, globally. of job experiences gives us the benefit of handling your needs with confidence and proven skills. internationally, even stronger has the N-Hance where confidence to outcompete and outperform the competition through our revolutionary business model and proprietary products. As we only started outside of Canada franchising in 2017, States and the United the begun to scratch we haven’t surface of our potential around the world, but through our with entrepreneurs relationships you, we plan on growing like in the of locations by hundreds coming years. cabinets and replacing or floors more With N-Hance, over. are and quality affordable, frequent, more possible. For are updates please contactinformation, Joe +1 616 560 8686 or at Manuszak [email protected].

or – F

t’s common for common for t’s Franchisee Testimonial Franchisee life! The my has absolutely changed “N-Hance my and brought me it has and flexibility freedom hoped for.” than I could have family is more Owner Franchise N-Hance Hawkins, Mike – Over time, wood

– I

Color ShiftColor are Door Replacement – We learned a Since 2006, we have surfaces begin to fade due to the sun, CABINET REFINISHING Basic Renewal of heavy in areas or they turn gray the restore You will be able to traffic. lost color back into the wood. oil based finishes to adopt a yellow Ascolor as they age. an N-Hance the you can remove business owner, cabinets to yellowing and restore or even make their original color, shades of tint. them different able to offer services replace the to the cabinet doors, whilst we treat surround, thus giving your kitchen newa brand look. developed a proven lot, and we have successful creates system that people, satisfied customers, and business. simply good floors that cannot be sanded – cork, floors that or specially bamboo, hand scraped, is the only – N-Hance engineered and solution because we can refinish protect these floors without sanding. traffic areas or show signs of areas or show signs traffic During this service damage. water will touch-up needed N-Hance planks and screen fill and areas, then seal and deep scratches, the floor. refinish Floor Renewal Non-Sandable –

– Floors fade – Floors fade

e, get cracks and and cracks e, get Hammered Floor Renewal Hammered Our wood refinishing servicesOur wood refinishing we stay ahead ahead stay we in of the game our industry” “With decades decades “With of franchise operations support and leading R&D, his service is for floors with from sun exposur extensive damage that have been been have that extensive damage wood, have worn down to bare or black and gray deep scratches FLOOR REFINISHING: FLOOR Basic Floor Renewal from everydayscratches use and of Instead the finish can wear off. floor the entire to replace having you can follow and start over, renewal process our basic floor and protect to completely restore floors, most times in just one day T with a first-rate, unmatched unmatched with a first-rate, service is affordable, that professional and designed to produce exemplary results. gives new life for customers’ wood surfaces and a renewed pride in their home. When it customers comes to N-Hance, can expect the service quality and offer a great they deserve. We service and opportunity for both businesses and homeowners the importantto refinish wood furnishings they utilize every day: INSIGHT

Your Master Plan for Going Global As soon as you develop a successful domestic franchise brand, someone is going to ask you, “Can you franchise this in my country, too?” As much as you’ll want to say yes, you shouldn’t unless you’ve developed an international expansion plan. Here’s advice to help you do that

WORDS BY DR. JOHN P. HAYES

n international in at least some other countries, so will require two to four hours of expansion plan isn’t you’re going to need a plan. You’re time and you’ll need additional much different than also going to need to trademark time to write your plan. Some A a domestic expansion your brand in other countries – franchisors begin by attending plan. Begin by answering four key and that’s just the beginning of international development sessions questions and considering a variety your expenses. at franchise association meetings THE AUTHOR of related factors. and from there they form a core Dr. John P. Hayes is Should you develop international team that includes the Titus Chair for Is your business ready an in-house in-house employees and one or Franchise Leadership to be franchised 2 team to expand more consultants. at Palm Beach globally? Or even internationally, or hire Atlantic University 1 in West Palm Beach, just into a couple of a third party? What topics Florida where the nearby countries? Either answer, or some hybrid should you cover Titus Center for Whether you’ve opened a single answer, is acceptable. But there 4in an international Franchising is training unit domestically, or more than isn’t an easy way to arrive at the expansion plan? the next generation of franchise 1,000, you have to assess your right answer. Fortunately, there Now the real work begins. At first professionals. current situation prior to taking on are many successful international mention of the words “international added responsibilities and costs. If franchisors and most of them are expansion” it’s fairly easy for most you’re devoting all of your resources willing to tell you their story. Make franchisors to say “yes” or “no”. to your domestic growth and time to consult with them. You’ll Proving they answered correctly expansion, and you’re struggling find them at meetings sponsored by takes a lot more effort. Here’s some week to week to meet the needs of your country’s franchise association advice from several experts who can your franchise network, you’re in and at expos. Compare notes and help you focus on the real issues no position to franchise outside of evaluate the pros and cons of each that need to be decided before you your country. For most franchisors, approach. Over time you’ll know franchise globally. in fact, it’s all they can do to keep what to do. up with their domestic franchise Selecting Markets network. That doesn’t mean you How do you develop Robert Jones, chief international never franchise globally, but it does an international officer at Edwards Global Services mean you don’t franchise abroad 3 expansion plan? (EGS), suggests you begin your until you’re prepared to do so. Developing your international plan by selecting the countries While you’re thinking about expansion plan takes some with the greatest potential – and franchising globally, think about resources, primarily the right least risk – for your brand. Which the reality of selling your product people and time. Assuming countries will meet those criteria? or service in other countries. Is that your product or service has Consultants like Jones are paid to your product or service in demand international appeal, and assuming provide that information. EGS, universally? It won’t take much that you can (immediately or as well as other firms, provide a time to consider the question and eventually) devote financial and country-by-country evaluation that if the answer is “no” then there’s no human resources to international measures the potential for franchise sense developing an international expansion, you can figure you’ll success. You could discover this plan. Chances are, your product or need several meetings to plot your information on your own simply by service will appeal to consumers course of action. Each meeting doing an online search, or possibly

88 GLOBAL FRANCHISE | ISSUE 4.5 by consulting with other franchisors or franchise associations. “We do our homework on each At United Franchise Group (UFG), based in West Palm Beach, market and once we’ve determined Florida, Tipton Shonkwiler, CFE, International Director, leads a small it’s one we want to expand into we in-house team that has developed make a trip to get a sense of the franchise relationships in more than 80 countries. “Our first key local culture” factor when selecting a country or market,” says Shonkwiler, “is including people, travel, association Expo in New York City or various other the economy. We look for stable or meeting fees, etc. “and then expos in foreign countries. markets that are positioned for triple it.” The costs, internationally, Shonkwiler, a veteran international growth. Next, we want to make are always higher than expected. developer, relies on government sure a market is business friendly You could begin with one officials in foreign countries as well for startups. If there are too many or two part-time people who as in-country advisors to help him regulations, that could slow us complete two to four trips in a select a market. However, he also has down and be startup prohibitive. year’s time. Initially those trips learned the value of doing his own Finally, we want to make sure the may be devoted to meeting with homework. “We do our homework market is one that we can establish in-country experts who can help on each market and once we’ve the necessary foundation for develop a winning strategy for a determined it’s one we want to expand building one of our brands, such as country or region. Jones, a former into we make a trip to the market needed vendors and suppliers.” U.S. Commercial Service officer, to get a sense of the local culture, to advises U.S. franchisors to consult talk to business owners and see what Developing a Budget with government officials who other franchise brands exist there. You could begin your plan with know the ins and outs of a country. We also discover who, if anyone, one country or perhaps several Government officials can make in the market is doing something countries in the same region, i.e. introductions to local, and reliable, similar to the product or service our Germany, France and Switzerland. franchise experts. These experts business provides. We take all of this Then, says Jones, it’s pretty easy can also be found at franchise expos into consideration before we decide if to develop a budget for resources such as the International Franchise we’re going to expand into a market.”

GLOBALFRANCHISEMAGAZINE.COM 89 INSIGHT

“You will have to be able to justify provide training and support locally? Will you use master licensing or an your upfront franchise fee and area development model? Once again, your ongoing royalty fee" your decisions will be unique to your company’s requirements and you may decide to use one model in one country Selecting a Model and another model in a neighboring Which markets you select could country. The good thing is that you be influenced by the international have numerous options, but you’ve got development model that you decide to understand the pros and cons. And to use. Do you plan to sell single that takes time to consider units and manage the relationship the opportunities. from your headquarters, or will you sell the rights to a country or region Establishing Fees and allow your representative to Big fees get every franchisor’s interest.

90 GLOBAL FRANCHISE | ISSUE 4.5 “Can we get a million dollars from “So what’s the formula for sources of funding. There are people a master franchisee?” There are figuring out these fees?” you to help a franchisor get all of this plenty of stories from the years when might ask. No such formula exists. done, but you must take the costs huge fees occurred regularly, but However, if you’re franchising into account when you’re planning that’s not generally the case today. domestically you must have already your budget for international Franchise investors across the world developed a formula that works for expansion.” have become jaded and they know your company. Consider using that the questions to ask before they same formula, or a slight variation, Training costs invest. The upfront fees are smaller internationally. And then there are training costs! today, but it’s not unusual to hear After the sale, how do you plan about licensing fees in the range Consider the Expenses to train your licensee? Valentino of $150,000 to $500,000. Still, Initially you’re going to incur prefers “a train the trainer approach you will have to be able to justify people costs, travel costs, consulting because it ensures that what is your upfront franchise fee and your fees, etc., and once you’ve decided taught to a limited number of ongoing royalty fee. to target a market you’ll incur individuals domestically will be development costs. “It’s key to find carried over internationally and the proper candidate to help you taught to others.” Training also grow your brand internationally,” needs to include classroom as explains Lenny Valentino, Jr., CFE, well as online expertise. Your vice president of global franchise domestic training program is a good development and integration beginning for your international for TBC Corporation, which program, but culture, language, owns Midas and Big O Tires. “An and local customs all need to be inexperienced franchisee can hinder considered as part of your training brand reputation and expansion,” effort. What’s it going to cost to he continues, “whereas a franchisee build your international training who has market experience and support program? with operations, management The real work, and expense, and development can increase begins after the sale. Keeping your brand acceptance and growth licensees content and providing opportunities.” Of course, finding them with services and resources the experienced franchisee is costly! that help them become successful How will you do that? is another cost factor. UFG favors the master licensee model Lead Costs and Shonkwiler’s team spends Shonkwiler is a fan of franchise countless hours communicating expos, but also utilizes trade with licensees. “We visit offices on missions and Gold Key programs a regular basis and we keep a pulse conducted by U.S. Commercial on the brand in the country to make Offices around the world. Valentino sure we’re properly positioned and relies on those resources, too, but helping the franchisee succeed.” All TBC, with franchises in more than a of this activity requires more people dozen countries, works with an resources, as well as travel costs. international consulting firm with Ultimately, it’s your brand expertise in lead generation. that’s at risk. “It may be difficult No matter which development to ensure that your brand is being model you choose, lead properly represented internationally generation is costly and ongoing. without in-country auditing and You will spend thousands of support,” explains Valentino. dollars monthly to develop the “Creating standards specific to that appropriate lead flow. It will take territory and culture and enforcing months, sometimes years, to those standards will be crucial educate prospects and get them to establishing and growing your to your Discovery Day. “Before brand. There may be a need for you commit to a sale,” points out in-country support, potentially a Jones, “you’ll also need to know third party that you may partner how to conduct international with, who can assist franchisees with background checks, validate the maintaining brand standards with candidate’s reputation and verify store appearance, marketing and

GLOBALFRANCHISEMAGAZINE.COM 91 GLOBAL FRANCHISE 4_5 ISSUE 24 master_GLOBAL FRANCHISE 02/08/2019 10:17 Page 92 ALL ROADS LEAD TO

Sept. 13-14, 2019 • Donald E. Stephens Convention Center

Meet face-to-face with thousands of entrepreneurs that are prepared and motivated to take the next step toward franchise business ownership. FOR MORE INFORMATION

[email protected] 201.226.1130 FranchiseExpoChicago.com

SPONSORED BY BEHIND THE BRAND Behind the Brand - Bodystreet

Become Your AT A GLANCE BODYSTREET

Established: 2007 Country’s Market Number of franchised outlets: 300 Location of units: United Kingdom, USA, Germany, Austria, Italy, Gibraltar, Tanzania Investment range: Leader $ 80.000 - $ 100.000.000 Minimum required capital: $ 50.000 Contact: German fitness brand Bodystreet is expanding [email protected] worldwide – franchise and master franchise www.bodystreet-international.com opportunities are available now

ithin just a few years and brand – but even these essentials Bodystreet has managed need a sophisticated system of “Bodystreet has W to leave its competitors communication in order to reveal far behind in the field of their great potential. established new electrical muscle stimulation (EMS) As a franchise system, Bodystreet and has now become the world has established new benchmarks and benchmarks and market leader, with 300 boutique was awarded the DFV Marketing fitness studios in seven different Award in 2015. For its comprehensive was awarded the countries. Successful franchisees service portfolio and impressive range from fitness experts to system growth, Bodystreet was DFV Marketing “career changers”. honored with the title of Germany’s Award in 2015” Bodystreet undoubtedly dominates “Franchise System of the Year” in the market for fitness studios 2016 and nominated for the “Best offering EMS today. At Bodystreet, Franchise System” award in Austria to an incredible onboarding process. the customer is always personally in 2019. At Bodystreet, the entire supervised by a certified Bodystreet In order to attract franchisees, recruitment process for new instructor and requires much less Bodystreet relies on a recruitment franchisees, from the first contact time for a workout than in a classic process that has grown over many to the signing of the contract, gym: a 20 minute workout is all years. It goes from the initial contact, is precisely timed and placed it takes. to a live presentation of Bodystreet’s within a well-thought-out overall How does Europe’s leading concept, a counselling interview, a framework. All individual steps are EMS boutique fitness provider preliminary contract, and finally to carefully coordinated; they deliver manage to attract so many new and the franchise agreement, which leads the right message at the right enthusiastic franchisees every year? time to each franchisee and, with No question about it: Bodystreet meaningful intermediate steps, scores highly on concept, support lay the foundation for a successful partnership with Bodystreet. The complete decision – making and integration process is experienced by the system newcomer as a harmonious, smooth cooperation – and thus seen as a strong guarantee that in Bodystreet one has found an optimal partner in every respect for starting one’s own business. Bodystreet is always looking for franchisees in existing markets. If Bodystreet does not operate in your country, secure the market by becoming a master franchisee.

GLOBALFRANCHISEMAGAZINE.COM 93

Bodystreet.indd 93 02/08/2019 12:50 exposure Expos, events and happenings in franchising UPCOMING EXPOS

Come to Canada’s largest ‘own your own STAY AT Nu Hotel (6 mins), Four Points by business’ event where you can meet face to face Sheraton (6 mins) or Fairfield Inn & Suites with over 165 of the most successful franchises (9 mins) CANADA + brand new opportunities from every industry. Free seminars offer the low-down on franchise WHILE IN TORONTO.... WHAT: THE FRANCHISE EXPO ownership so you can make an educated Ride a glass elevator to enjoy the sky- WHEN: TORONTO, ON • decision about your future. Topics include: high views from the Lookout Level up THE INTERNATIONAL CENTRE legal advice, how to choose the business for Downtown’s famous CN Tower. The WHERE: SEP 07 - SEP 08 you, financing options, government assistance observation deck of the 1,815 feet tower 2019 programs and much more. features floor to ceiling windows and a new glass floor. Drive out to Niagara Falls. It may be almost a two-hour trip from Central Toronto but who would want to miss this? The largest of the three cascades, Horseshoe Falls, is on the Canadian side. Take a dram (or two) on the Toronto Distillery District Walking Tour as you explore the cobblestone streets of the city’s Distillery District

COMING SOON AT IFA 2020... THE GLOBAL FRANCHISE AWARDS

ARGENTINA Orlando, Florida will be the backdrop WHAT? FRANCHISE BUSINESS Eat Steak Argentinians are justly proud of the for the third Global Franchise Awards WHERE? LA RURAL, quality of meat that’s served up as steak in this presentation. Sponsored by MSA BUENOS AIRES country. Try some, with a local Malbec. Worldwide, these increasingly prestigious awards will be presented to our worthy WHEN? AUG 28 – AUG 30 Watch polo at Campo Argentino de Polo, winners during February’s 2020 Franchise business has already or horse racing at Palermo. Argentinians International Franchise Association consolidated itself as the most are famed for their horsemanship. See those annual convention, at Orlando World important sales channel for skills in action. products and services in Argentina. Center Marriott. Hold the date and Expects up to 20,000 visitors and ensure your brand is entered! Details at globalfranchisemagazine.com/awards 100-500 exhibitors.

WHILE IN BUENOS AIRES.... Pay Your Respects to Evita and other once rich, powerful people now residing at Recoleta Cemetery in some of the most ornate and impressive AWARDS 2020 mausoleums you are likely to find.

94 GLOBALFRANCHISE | ISSUE 4.5 PREVIEW

AT A GLANCE FRANCHISE EXPO CHICAGO WINDY CITY: Where: Donald E. Stephens Convention Center 5555 North River Road Hall G, Rosemont, IL, U.S.A. Franchise When: 13-14 September, 2019 Website: www.FranchiseExpoChicago.com Business Hub Contact: [email protected] +1 (201) 226-1130 Travel & Accommodation: Motivated franchisors and future business owners set to For more information on how to get there and where to stay, visit www. connect at Franchise Expo Chicago, September 13-14 FranchiseExpoChicago.com/Travel

fter an impressive exhibitor list. Franchise Expo inaugural year, Chicago will also offer free A Franchise Expo educational seminars and in-depth Midwest rebrands as workshops on “The A to Z’s of Franchise Expo Chicago, where Buying a Franchise” and “How to hundreds of the hottest franchise Franchise Your Business.” concepts and opportunities will be “In a promising market like on display drawing interest from Chicago, it is our goal to have the most qualified prospects from individuals walk out of the expo the Chicagoland area and beyond. feeling confident about franchising Held at the Donald E. Stephens while franchisors leave with high- Convention Center this September quality leads, all while building 13-14, Franchise Expo Chicago is set lasting business relationships,” said to be a transformative experience for Tom Portesy, President and CEO of entrepreneurs and franchisors alike. MFV Expositions, producers of the Chicago has truly established expo. “This is truly a must-attend itself as a leading business hub in event for those looking to grow and the Midwest, and continuously develop across the Midwest region.” attracts aspiring entrepreneurs The two-day event opens its and talented workers each year. doors at 10 a.m. CT on Friday, As one of the world’s largest and September 13. Tickets to register most diversified economies, the to attend Franchise Expo Chicago Chicagoland area has become an are $10 in advance and $20 at the ideal region to promote franchise door, but those who register at expansion and entrepreneurship to www.franchiseexpochicago.com those who are ready to learn. and use promo code FRANCHISE MEET WITH TOP BRANDS: • AAMCO Transmissions and Total Car Care • Ace Hardware Thousands of entrepreneurs will receive complimentary expo • Buff City Soap • Camp Bow Wow® • Chatime USA and future business owners from and seminar admission. Details • Cinnabon • Dream Vacations • FASTSIGNS International across the United States will attend of the Educational Program • Firehouse Subs • HomeVestors of America • iCRYO Franchise Expo Chicago for a schedule can be found at www. • Neighborly • Rosati's Pizza • Subway • The Goddard School unique chance to meet face-to-face franchiseexpochicago.com/ with over 100 proven franchise conferenc. For more information MFV Expositions, owned by Comexposium, opportunities in every industry, on exhibiting or attending, please is the world’s largest producers of franchise expos. Known for its highly successful U.S.- across every investment level, full- contact MFV Expositions by calling based franchise events and overseas shows, time and part-time. Please visit 201-226-1130 or email fec@ the company offers high-quality face-to-face www.franchiseexpochicago.com/ franchiseexpochicago.com. opportunities for franchisees and franchisors exhibitor-list for a comprehensive looking to grow in the industry. Each franchise expo features franchise concepts from every industry and every investment level. Today, MFV utilizes its “It is our goal to have individuals global online franchise directory BeTheBoss.com, with the latest technology and search metrics to provide a cost-effective way to market franchise walk out of the expo feeling businesses. For more information about MFV confident about franchising” Expositions, please visit www.mfvexpo.com

GLOBALFRANCHISEMAGAZINE.COM 95 INSIGHT

Talking About This Generation If there's one generation you need to focus your marketing campaign on, it's the millennials, says Tamara Smith

WORDS IAN MARTIN

orn between the Having had the ability to control more millennials are also attending mid-1980s to 2000s, their own destiny with the click of franchise events. Think ‘out of the B Millennials are a hot a button, they are attracted to the box’ to grab their attention. Typical topic in every industry idea of taking control of their future leave behinds will not make the these days. Growing up in the age and by the fact that franchises same impact with this generation. of the internet, they have a unique provide the systems and tools to Targeted events can also be very THE AUTHOR experience and perspective. With support their success. Millennials successful. Hosting a ‘Discovery Tamara Smith is a mindset that is different from can make great franchisees, but Event’ at a university or shared CEO and Marketing any former generation thanks to require a different type of approach Strategist at Just their sudden access to information than other generations. Franchise Marketing. justfranchise technology, millennials have high marketing.com/ expectations for what their career Marketing to millennials will deliver and much is expected Marketing to millennials means of them. meeting them where they’re Never before has a generation at. Franchisors must consider who had access to such a vast amount their ideal millennial franchisee of information. With the internet is and how they operate to target at their fingertips for their entire them accordingly. As an online existence, they think differently. generation, targeted advertising can Millennials have different goals be very effective if done correctly. from former generations both in This involves understanding your work and life. Immediate access to ideal candidates' unique likes, information, pictures, videos and interests, and involvement. Groups anything else has created an on- can be a good starting point. Narrow demand mindset. targeting is more effective than casting a wide net and will save your What does this mean to franchise development team’s time, the world of franchising? as well as your budget. With the traditional job market Job boards can be effective, yet fluctuating, many millennials are risky. Many sites are against selling frustrated that current conditions businesses, especially franchise often make it difficult for them to opportunities. It’s also impossible secure a stable work position. But to properly target ideal candidates this makes them prime candidates and franchisors may throw back to become franchise owners. more fish than they keep. More and “More and more millennials are also attending franchise events. Think ‘out of the box’ to grab their attention”

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Talk about this generation.indd 96 02/08/2019 12:50 always key and there are many workspace can help to attract ideal based on background experience options available. Your franchise millennial candidates and allows and financial information. With brand likely has a number that you to target your presentation millennials this information are offered already. There are also accordingly to their demographic. is scarce, if it exists at all. Franchisors need to understand options tailored specifically for this Finding your the right questions to ask to qualify demographic through banks millennial candidates. and loans. millennial ‘unicorn’ Some franchisors have opted With minimal workforce Consider creating a program to create programs specifically experience, not every millenial specifically targeted at millenials. for this demographic to help is cut out to run a franchise. Include pre-qualification questions subsidize the cost. Remember, Although millennials are the most to weed out anyone who isn’t a fit. the right franchisee will bring in a entrepreneurial generation to date, Train your sales team on how to lot of revenue in the long term as that does not mean that everyone have a different conversation with well as be a face for your brand to is a fit for your franchise model. them. Remember the difference utilize and promote to attract new Franchisors need to be sure to with this generation. franchisees. The long term benefits qualify millennials in a different outweigh financial subsidies. way to other generations. At the But how do they If all else fails, parents, friends end of the day, franchising is about finance their franchise? and family often help. Being the revenue - not the initial sale. Millennials come with most entrepreneurial generation, Buying a franchise is not a magic baggage. Student loans, credit the right candidates will find a way. fix for career struggles and the cards, minimal savings and it millennial franchisee must have the continues… But that doesn’t mean Joseph Folwell - A right traits to make the business a the right candidate won’t be a millennial case study success. Typically, qualification is fit. Financial considerations are Meet Joseph Folwell - millenial and multi-territory franchise owner. After growing tired of working for someone else he decided to go out on his own and purchase a franchise. He was attracted to the proven lead generation philosophy behind the franchise and the strong brand presence. To finance his investment he worked as much overtime as possible to save up for his franchise fees. The franchisor also offered a scholarship program and after scoring so highly on the qualification and matching tests, he was approved. He quickly scaled his business and ended up purchasing three territories. 2019 was his first year running his franchise full time and sales have exceeded £160,000 so far. His business continues to grow and he looks to purchase additional territories in the near future. Joseph is proof that the right millennial franchisees will deliver results for your brand. His results have exceeded those of many more senior and seasoned franchisees.

The bottom line Millennials provide a huge new opportunity for franchisors. With the right marketing, targeting, qualification, and financing in place, franchisors can take advantage of this emerging market. Millennials tendency to act quickly may also result in deals closing faster if done correctly.

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Talk about this generation.indd 97 02/08/2019 12:50 THE LAST WORD

GARY FINDLEY JOHN HAYES

“Honesty builds relationships, “all franchisees are not created which is the cornerstone of any equal and they will not all learn successful business” the same way”

In today’s world, there is one common trait between all successful “It doesn’t make sense,” said the franchisor. “We deliver the same brands – integrity. It’s something we hope to find in every business quality training to all franchisees and yet, some of them just don’t we interact with, whether it’s our own or not. And integrity plays a get it. What’s wrong with them?” large part in brand growth, especially in franchising. The larger the The franchisor who asked that question was frustrated franchise, the more important it is to establish a consistent truth because an increasing number of his franchisees said that his throughout every location, and that starts at the headquarters business model didn’t work. The franchisees were dissatisfied level. Here are three ways to ensure the integrity of your brand. with the money they were earning from the franchise and they didn’t hesitate to say so when prospective franchisees contacted 1. You have to be open and honest. them. “If this keeps going,” said the franchisor, “I won’t be able to Always be truthful with customers and employees, whether sell franchises.” it’s with advertising, direct conversation or other forms of The franchisor was certain that his training team was stellar, communication. Honesty builds relationships, which is the but that some of the franchisees weren’t smart enough to “get” cornerstone of any successful business. It’s important for the the training, or they weren’t willing to develop the skills needed customer to trust your product or service – and this is how you can to succeed as a franchisee. Regardless of what the franchisor foster integrity for your brand. thought, he had a problem. The good news is that many franchisors face this problem; and the better news is that it can 2. Make customers your top priority. be solved. All brands exist to serve customers in some way, shape or form, The first step is to realize that all franchisees are not created whether it’s through a product or specific service. That’s why it’s equal and they will not all learn the same way. The problem important to keep customers at the forefront. Your manner, words is not that the franchisees aren’t smart enough or that they’re and actions need to demonstrate to customers that you are there unwilling to develop skills. The problem is the way the training to serve and understand them. It’s our job to show them how team delivers the information! much our brand values them. A win in customer satisfaction is a In fact, the problem may be the way the training program was win for the entire brand. developed. If it wasn’t developed to include different learning styles then it’s not stellar and it won’t be effective. 3. Build a team with Integrity Every franchisor (every educator) needs to realize that there are Once integrity is established in the top levels of the brand, you visual, auditory, read/write and kinesthetic learners, and all four want it to permeate throughout the whole organization. This starts learning styles are present in every training session. However, with being very thoughtful about who you hire. When talking if the training is delivered only in a kinesthetic fashion, or an to potential franchisees, bring up conversations surrounding auditory only fashion, it will not be effective for everyone in integrity. Ask about their goals, their values, and how they would the room. handle certain situations. Integrity is the cornerstone of any strong Visual learners want to see pictures, not words. Auditory business looking to grow its network. It may not happen over learners require the spoken word. Read/Write learners require night, but done right from the beginning, the journey to success reading text and writing notes. They process information via will be a whole lot smoother – benefiting you, your franchisees and written words. And kinesthetic learners require tactile processes. your customers as a whole. They process information by recreating it and practicing. Franchisors who want to help their franchisees succeed, or to Gary Findley, the self-proclaimed “Redneck CEO”, oversees one of the fastest- “get it,” need to begin by re-engineering their training programs growing multi-brand franchise chains –Restoration 1 and bluefrog Plumbing + and including the four learning styles. Drain. Both headquartered in Waco, Texas, Restoration 1 is an award-winning brand with more than 250 locations, while bluefrog, acquired in 2017, serves as Dr. John P. Hayes is the Titus Chair for Franchise Leadership at Palm Beach the perfect complement to Restoration 1. Atlantic University in West Palm Beach, Fl.

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