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Global Franchise Global Awards 2021 Hear from this year’s line-up of industry-leading winners, and learn the keys to success Franchise Five reasons globalfranchisemagazine.com franchisors fail Unmissable advice for emerging brands MASTER, REGIONAL AND INTERNATIONAL FRANCHISING
FITNESS FRANCHISING SLIM CHICKENS REPORT Egg-ceeding franchise goals The biggest workout with a landmark year trends of 2021
YOUR COMPLETE GUIDE TO BLOCKBUSTER: FRANCHISING IN FROM RETAIL GIANT AUSTRALASIA TO A CAUTIONARY TALE
PAGE BRAD PAGE LIL PAGE MARC 22 HILLIER 72 ROBERTS 94 DASILVA Rebuilding in a post- Preparing for a franchise Delivering convenience lockdown world recruitment boom to the consumer
60 Years in Business. 20 Years in Franchising.
$5.5 Million Average Unit Volume* $12.6 Million Top Quartile*Transparent Ranked #209 in the world**
After 60 years in business and a 20-year history in franchising, City Wide Facility Solutions continues to be dedicated to making an impact in our communities as an award-winning, recession- resistant, essential business. In 2020 City Wide franchisees thrived, setting records amidst a pandemic, and truly rising to the challenge of being a solutions-focused brand.
There’s no better time to choose City Wide!
*2021 FDD Item 19 **2020 Franchise Times
For Franchise Information, Contact: Robert Stidham | +1-312-550-7888 [email protected] | citywidefranchise.com CONTENts HIGHLIGHTS Australasian A look at The franchising fitness franchise 34 focus 47 franchising 72 recruitment Join us as we in 2021 boom take a look at the biggest From brick-and-mortar to virtual How layoffs are contributing franchise developments workouts, we cover this sweat- to the biggest wave of Down Under fuelled sector franchisees yet
86 FIT20 80 THE POWER OF EMOTION IN FRANCHISE OPPORTUNITIES Changing the fitness paradigm DRIVING FRANCHISE LEADS Trevor Rappleye relays the importance of relatability 30 HELEN DORON 90 CITY WIDE FACILITY SOLUTIONS EDUCATIONAL GROUP A service sector seeing significant demand Changing lives with exemplary education 88 THREE STEPS TO OPENING 92 TUTOR DOCTOR YOUR FIRST INTERNATIONAL 32 LIFT BRANDS Be a part of the education boom LOCATION A new era for the fitness franchisor Michael Andreacchi explains how to seamlessly integrate your brand abroad 93 BODYSTREET 60 SLIM CHICKENS Handling the COVID-19 crisis like a leader Egg-ceeding its franchise goals 94 INNOVATION FOR SIMPLICITY’S SAKE 64 KARE PLUS ADVICE, FEATURES, INSIGHT Marc DaSilva discusses how the Empowering healthcare professionals demand for convenience can make your life easier 68 CHEM-DRY 10 OPENINGS AND EXPANSIONS An eco-friendly deep-clean The latest goings-on in the world of INTERVIEWS international franchising 69 JUST CUTS The Australian salon delivering success 13 GLOBAL FRANCHISE AWARDS 50 JÖRG FOCKENBERG, 2021: MEET THE WINNERS GOLD’S GYM “We are committed to making it clear 70 FANTASTIC SERVICES Hear directly from this year’s prestigious industry leaders that a membership is more than just Thriving by harnessing technology a contract”
76 OFFICE EVOLUTION 18 STRESS TIPS FOR FRANCHISORS 52 EMRE OZGUR, EOC FITNESS The flexible future of workspace franchising Four industry experts share timely “I compare the fitness industry right now relaxation tips with what happened with Bitcoin”
20 FIVE REASONS 54 SUNIL RAJASEKAR, MINDBODY FRANCHISORS FAIL “We do not believe in-person workouts are Dugan Aylen cautions against foolhardy going anywhere” 34 expansion 97 ELOI GOMEZ, JEFF 22 REBUILDING FOR THE POST- “Companies must accelerate their PANDEMIC CONSUMER initiatives towards a digital transformation Brad Hillier helps you ensure you’re ready for a new kind of customer EVENTS
25 KEEPING IT SIMPLE 33 THE GLOBAL Scorpion’s latest study reveals that FRANCHISE MARKET streamlined marketing is best The must-attend event in the Middle East
56 WHERE ARE THEY NOW: 78 MULTI-UNIT FRANCHISING BLOCKBUSTER CONFERENCE The inside story behind this video rental The premier event celebrates its 20th giant turned cautionary tale anniversary
4 GLOBAL FRANCHISE | ISSUE 6.2 UPFRONT ith lockdowns and working W from home becoming the de facto day-to-day situation for many of us over the past year, this rather stationery existence can lead us to 43 believe that organizations and industries are universally standing still, too. This has been far from the case for many international brands, Kieran McLoone. It’s been a privilege to edit though. For instance, at a recent Yum! Brands this title, and while I will still be overseeing investors day, KFC representatives stated they’re its production, I’ll miss liaising with the doubling-down on international growth, with one wonderful array of franchise experts and store set to open every five hours this year. contributors on a day-to-day basis; these Much of the expansion will be outside of the are the people who make this publication franchise’s main markets of the U.S. and China, a vibrant forum of essential international too, with a large proportion of the brand’s unit franchising insight and knowledge. Kieran growth already taking place in markets like India. has his finger well and truly on the pulse of In fact, Nation’s Restaurant News states that 90 this exciting industry and I look forward to per cent of the company’s growth in the last five him taking the magazine to the next level. years has been from overseas markets. Stasis will His email address is included in the panel only mean conceding market share to rival brands, below, if you’d like to send him a note and top franchise organizations acknowledge that of congratulations. sustainable growth can be achieved fruitfully in the current climate. To your success, One market that many franchisors are raring to tap into is the Australasian franchise James Fell landscape. So in this issue, we shine a light on the Editor, Global Franchise opportunities this vibrant continent offers curious [email protected] investors and round-up the news and trends that can help to shape your brand’s expansion strategy. @globalfranmag On the topic of brand development, this will be Global Franchise my last issue editing Global Franchise magazine, Global Global Franchise and I’ll be passing on the baton to deputy editor Franchise Magazine
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Quiznos retrospective Global Can the QSR brand return after its fall from grace? Rely on resilience How franchisors can stand up Richard Davies 44 (0)1323 471291 | [email protected] James Fell | [email protected] Franchise to scrutiny globalfranchisemagazine.com Recruitment changes A new world requires a fresh MASTER, REGIONAL AND INTERNATIONAL FRANCHISING acquisition approach SENIOR ACCOUNT MANAGERS DEPUTY EDITOR Luke Elliott 44 (0)1323 471291 | [email protected] Kieran McLoone | [email protected]
MULTI-UNIT Matthew Gilley 44 (0)1323 471291 | [email protected] FRANCHISING REPORT DESIGNERS Luke Rogers & Adam Barford SUMMA FRANCHISE Everything you need to Millie Hall 44 (0)1323 471291 | [email protected] Published by D.C. Thomson & Co. know, just in time for Multi-Unit Month CONSULTING: The award-winning GLOBAL FRANCHISE Ltd, 185 Fleet St, Holborn, London consultancy that’s developing AWARDS 2021: Rachael Wenham 44 (0) 1323 471291 | [email protected] franchises around the world WINNERS ANNOUNCED CREDIT CONTROL Sue Carr 44 (0)1206 505903 PAGE MICHAEL PAGE NED PAGE EMILY EC4A 2HS. 18 O’DRISCOLL 44 LEVITT 72 SADLER Concluding the triple The death of master Future-proofing your disruption discussion franchising? franchise agreement Printed in England PUBLISHER Matthew Tudor
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GO FROM DEGREE TO FRANCHISEE What enterprising graduates need to know What THE PRICE OF SUCCESS Discover the true cost of franchise ownership BUYING A FRANCHISE Franchise Why you should let your head £3.99 | VOLUME 17 ISSUE 1 what-franchise.com rule your heart Disclaimer: Limitations of Global Franchise Content: the Global Franchise Content (including any information we publish regarding Third Party Products) is only for your general information and entertainment purposes and is not intended to address your particular requirements. In particular, the Global Franchise Content, including UGC and any other content provided by third parties and distributed by Global Franchise Website, does not constitute any form of advice, recommendation, representation, endorsement or arrangement by Global Franchise. It is not intended to be and should HOW TO 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 STAY HEALTHY While taking 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 care of business Website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. It is not intended to be and should not be relied upon by users in making (or refraining from making) any specific investment, purchase, sale or other decisions. XCELERATE POWERBRANDS SPORT, FITNESS & OUTDOOR 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 GYMS OPPORTUNITIES BUILT TO BE DIFFERENT -page-page special and any third party named on (or linked to from) Global Franchise website are at your own responsibility and entered into at your own risk. Any information that you receive via Global Franchise Website,
PAGE PAGE PAGE IN-HOUSE OR ON A MILLION- THE WORLD OF 13 OUTSOURCE? 14 POUND MISSION 70 WORK IS CHANGING whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. The views and opinions expressed in Global Franchise magazine are those of the author(s) and do Recruitment options for Join Fantastic Services’ And fl exible o ce ambitious franchisors seven-fi gure club franchisees can cash in not necessarily reflect the views and opinions of Global Franchise magazine or staff. GLOBALFRANCHISEMAGAZINE.COM 5 UPFRONT Facts, figures and trends from the world of franchising
IN THIS ISSUE:
Five reasons franchisors 20 fail Know the steps that you should Rebuilding the customer take before deciding to franchise your business experience post-pandemic 22 How to ensure that your brand appeals to a new kind of consumer
Where are they now: 56 Blockbuster The second installment in our retrospective franchising series
88 Opening your first The rise of customer convenience international location 94 Why a push for simplicity is making everybody’s lives easier – Three essentials to set you up for overseas successl including franchisors location Three essentials to set you up for overseas success
6 GLOBAL FRANCHISE | ISSUE 6.2 Franchising around the world
In this issue, we take a detailed look at how the Australasian franchise market has recovered from the pandemic and is now positioned to be a true global frontrunner for international brands seeking a consumer base brimming with potential. The world watched on in awe as New Zealand locked down and achieved excellent results in its handling of COVID-19 – but have its entrepreneurs been as resilient? Make sure to check out our Australasian THE GLOBAL report to find out more. FRANCHISE PODCAST P.34 AUSTRALIA: The boom of franchising Down Under Throughout May, the Global Franchise “Companies such as Subway, Domino’s Pizza, Podcast was taken over by Multi-Unit Krispy Kreme and Starbucks are among many Month, and we released four unmissable which really only struck a foothold in Australia after episodes which each delved into a unique several attempts and changes of ownership, because aspect of this rising form of business they did not understand the differences in the market ownership. So whether you’re looking when they first arrived” to learn about why multi-unit growth is - Brian Keen, Franchise Simply occurring, or you need to understand the P.41 NEW ZEALAND: legal must-dos of owning several units, An understated franchising gem make sure to tune in today and hear from “Notwithstanding, history has shown there the industry’s leading experts. is always opportunity for a strong organized operator to enter – and New Zealand typically To listen to all episodes of the features a relatively benign competitive Multi-Unit Month takeover of the environment compared to, for example, Australia Global Franchise Podcast, head over to or the U.S.” globalfranchisemagazine.com/ - Callum Floyd, Franchize Consultants multi-unit-month.
The state of fitness franchising in 2021
The fitness franchise industry certainly wasn’t immune from “If you’re in the the effects of COVID-19, but don’t let that make you think industry, you it isn’t ready to come back better pivot swinging as centers begin opening up again. and understand To find out more about the that today’s impact of virtual workouts, and what the brick and mortar fitness will ‘gym of the future’ could look not look like like, head over to our sector tomorrow’s” P.52 EMRE OZGUR, FOUNDER, report on page 47. EOC FITNESS
GLOBALFRANCHISEMAGAZINE.COM 7 HALF OF WORKERS NOT CONFIDENT ABOUT RETURNING TO WORK WITHOUT VACCINATIONS
ust 51 per cent of U.K. office workers feel confident about returning J to work even if their colleagues aren’t required to have a COVID-19 vaccination, according to research from Ezra, a provider of digital coaching. The study found that 80 per cent of workers weren’t required to be vaccinated before returning to work, with 17 per cent unsure of their company’s Goldberg, the founder of Ezra. “However, for many current policy regarding vaccinations. businesses, this slow return to normality is a vital part Some workplaces are looking to make workers feel safe with of their strategic plan for the year ahead and so many of PPE requirements (around 10 per cent), and socially distanced us will be required to brave the workplace at some point desks being the most common form of precaution (20 per cent). or another.” “It’s understandable that many of us might feel anxious To incentivize your franchise workforce to return from about returning to the workplace while the threat of COVID remote work, it may be a good idea to be transparent about remains such a big part of our day to day lives,” said Nick your precautions and requirements as soon as possible.
The U.S. has the highest number of female billionaires
The United States has a total of 85 female billionaires, with most being found in the food and beverage industry. This news comes as a result of a MoneyTransfers.com study, in which the organization researched the quantity and geographic distribution of extremely wealthy females. In total, the U.S.’s billionaires are worth a collective net of $555.9bn. In second place is Germany with 29 billionaires primarily in healthcare, followed by China’s 26 billionaires who mainly made their money in the technology industry.
Countries at the bottom of the list include Norway, Russia, and the U.K., with each region only having three female billionaires who made their money across a variety of sectors.
8 GLOBAL FRANCHISE | ISSUE 6.2 eCommerce could see a dip in a post- pandemic consumer landscape
Throughout the pandemic, millions say that they’ll spend less online after of consumers flocked to digital the pandemic passes, with three-in- storefronts to fulfill their purchasing five shoppers saying their biggest pain desires; whether to buy gifts they point is not being about to speak with a may normally shop for in person, or customer service representative. spontaneous purchases inspired by new “The challenge for online retailers hobbies picked up while in lockdown. is about to get even greater. If they’re In fact, the U.K. saw a 233 per cent going to hold onto their customers increase in the number of people over the long term when competition using the internet to do most from in-store shopping returns, retailers of their shopping, according need to invest in their online user to browser testing platform experience and deliver a consistently LambdaTest. incredible online service,” continued “Retailers with an online Khan. “The retailers that will flourish presence have been riding are those that monitor and adapt their an incredible wave over the web presence quickly and efficiently. last year,” said Asad Khan, Consumers are fickle and flooded co-founder of LambdaTest. with choice. Poor websites will drive “They’ve overcome some customers away, and they don’t enormous challenges to make come back.” their online presences as great These learnings will be especially as possible in extraordinary, important to emerging franchise brands tough circumstances.” that may have experienced success However, retailers need to throughout the pandemic, but are yet be prepared for a dip in these to experience the ‘normal’ state of play. figures if the organization’s Prepare your digital presence now, so research is anything to go that you’re ready for the consumer by: 68 per cent of consumers of tomorrow.
NINE IN 10 COMPANIES COULD LOOK TO REPLACE EMPLOYEES WHO CAN’T WORK REMOTELY
Remote working has been embraced more than ever before across the past year. Whether to prioritize safety or simply save on office costs, businesses large and small have instructed their workforce to continue operating from home until the foreseeable future. It seems that not only is this likely to continue, but a return to the old way of working could be a distant relic. According to a study by expenses app provider ExpenseOnDemand, 90 per cent of companies stated that their ongoing strategy is to begin replacing staff who were unable to or struggled with working remotely. In tandem with these numbers, 84 per cent went further and stated that they were looking at ways to reduce clerical costs by implementing more automated processes. “The pandemic has had an unprecedented impact on the world economy,” said Sunil Nigam, founder at ExpenseOnDemand, “and many businesses are putting robust plans in place to ensure they can minimize impact on any future epidemics and this is clearly being reflected in new recruitment strategies around the globe.” On a positive note, the study also revealed that 95 per cent of respondents are looking to recruit for new roles in 2021; showing that the business landscape is set for a strong return in a post-pandemic world.
GLOBALFRANCHISEMAGAZINE.COM 9 NEWS
Global franchising updates The latest highlights, expansions, and goings-on in the world of international franchising
nternational franchising is in full swing as we reach hop on board the business ownership train. the middle of the year, with brands from each and To keep up-to-date with all of the latest franchising news, every industry taking their concepts into numerous head over to globalfranchisemagazine.com. I untapped markets. Whether entrepreneurs work in real estate or restaurants, there’s never been a better time to
Wingstop: Calling all Canadian entrepreneurs Wingstop, the chicken wing concept with more than 1,500 locations worldwide, has signed an agreement with JPK Capital to bring 100 Wingstop restaurants to Canada over the next 10 years. “As technology entrepreneurs and investors, we have been impressed with Wingstop’s investment in innovation and look forward to capitalizing on its proprietary tech stack to offer a best-in-class digital and in-restaurant experience to Canadians,” said Joe Poulin, founder and CEO of JPK Capital. This Canadian expansion comes off the back of a successful 2020 for Wingstop, with the brand experiencing its 17th consecutive year of positive same-store sales growth, and the opening of 153 new units. Freddy’s Frozen Custard & Pizza Hut International: Steak Celebrating 1,000th FCD burgers: Pizza Hut International opened its 1,000th Fast Casual Multi-unit mania DelCo (FCD) location, with the milestone site situated in Coming off the back of a successful 2020 Guadalajara, Mexico – 52 years after the pizza franchisor in which it welcomed six new development first entered the country. groups to its network, Freddy’s Frozen “With FCDs as the fastest growing pizza concept in the Custard & Steakburgers has signed four multi- world, we tap into customer demand for an experience that is unit franchising deals which equate to 29 new easy, fast, tasty and safe,” said Joseph Call, chief development restaurants across four states. officer, Pizza Hut International. “A milestone like this is one “Coming off the momentum of last year, to be celebrated as we continue to deliver for our customers, we’re thrilled to round out a strong first team members and partners by bringing our love of pizza to quarter with these multi-unit deals. The areas the forefront.” included in these signings are key markets Pizza Hut International first launched the FCD model in 2017, and in our growth plans and we’re excited to be it now operates in more than 80 countries around the world. It was making our mark with dozens of new Freddy’s initially launched to keep up with changing consumer expectations restaurants across the nation,” said Scott and provide customers with a modern on-premises experience, Redler, co-founder and COO of Freddy’s whether they are eating in, carrying out, or ordering delivery. Frozen Custard & Steakburgers.
10 GLOBAL FRANCHISE | ISSUE 6.2 Island Poké: CKE Restaurants: Milestone in Madrid CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr. and Launching in London Hardee’s, has announced the opening of its 1,000th international Island Poké has signed its first two U.K. restaurant. The milestone site is located in Madrid, Spain, and marks franchise partners, which are set to bring a the 23rd restaurant in the country. total of 23 locations to the country over the next “The opening of the 1,000th international location is a proud five years; trebling the brand’s current U.K. moment placing CKE in the top tier of global restaurant chains,” said footprint. This European development comes CEO of CKE Restaurants, Ned Lyerly. “Our momentum is building as we alongside Island Poké’s 42 planned sites for France have plans to double our international presence in the next five years.” and Benelux, which are set to open across the same This opening comes in a long line of international milestones for the five-year period. brand, with CKE opening its 300th restaurant in Mexico earlier this “We’re so excited to be announcing our first two year, as well as celebrating 40 years of business in the Middle East and franchise partners for Island Poké,” said founder opening a flagship site in Sydney, Australia later in the summer. James Gould-Porter. “We are just beginning to ease out the pandemic which has been a hugely challenging period for the hospitality sector and these latest partnerships show amazing confidence BabyBallers: Taking toddler soccer in our brand.” Down Under BabyBallers, a soccer education franchise with more than 50 locations in the U.K., has announced plans for Australasian growth. The team behind the brand plan to open their first locations in Australia later this year, with the goal to have a presence in major cities throughout the country and regional areas including New South Wales, Victoria, Queensland, and Western Australia. “BabyBallers helps get children ready for not only soccer but for their future lives at school and beyond. Having three children myself, I can absolutely see the benefits of integrating this business into our local neighborhoods,” said James Young, head of sales and development at DC Strategy, the organization helming the brand’s Australian growth. “We have already seen an influx of inquiries and we look forward to helping this incredible brand grow in Australia and potentially New Zealand too!"
Realty ONE Group: Coming soon to Singapore North American real estate franchisor Realty ONE Group has plans to soon open in Singapore, after the group’s Heartland regional director Robb Spearman and his wife Sock Hoon Spearman acquired the franchise rights for all of the country. “We are just beginning to ease “Singapore is my homeland and we want Singapore’s property agencies and agents to achieve greater out of the pandemic which success, faster with the Realty ONE Group’s model,” said Sock Hoon Spearman. has been a hugely The organization was founded in 2005 and now has over 16,000 real estate professionals within its network. challenging period for the This international deal is the first of several country developments that the brand plans to announce in 2021. hospitality sector"
GLOBALFRANCHISEMAGAZINE.COM 11
GLOBAL FRANCHISE AWARDS 2021 MEET THE WINNERS
Gain insight into how these prestigious organizations have claimed world-beating status
GLOBAL FRANCHISE CHAMPION 2021 + BEST BEST CHILDREN’S SERVICES & WHITE COLLAR FRANCHISE EDUCATION FRANCHISE
INXPRESS GLOBAL SCHOOL OF ROCK Melanie Spencer, global head of marketing Tony Padulo, chief operating officer
GF: Congratulations on being named the overall Global GF: How international is School of Rock currently? Franchise Champion 2021! What do you believe makes InXpress stand out ahead of the rest? TP: We are a global brand with over 350 schools open or under development MS: InXpress’s results-driven ambition has seen in 15 countries (currently at 290 the business grow from a bedroom in Rochdale open today in 10 countries, and to become a multi-million-pound business with we expect approximately 310 franchisees across the globe living their dreams and open in 14 countries by year end). achieving success they didn’t think was possible. Right now we have 238 units in the Passion for the franchising industry has meant that over the past 22 years, U.S.A. and 53 operating in nine other as well as building a global business, InXpress has simultaneously strived to countries: Canada, Brazil, Chile, Peru, promote the benefits of franchising, which includes educating those who may Paraguay, Mexico, Philippines, South have a misconstrued understanding of it or have never heard of it. This includes Africa, and Australia. There are also master being regularly involved in industry events, having board members on the bfa franchisees working on opening locations and the IFA, and advocating the benefits of franchising to women, minorities soon in Portugal, Spain, Taiwan, Ireland and Colombia. and graduates. We are also a compassionate business and one of InXpress’s core values is to GF: What’s the secret behind successful give back to those less fortunate than us both at home and overseas. Over the years we have raised thousands of pounds for charities and volunteered hundreds international expansion? of hours of time working in community centres and doing everything from TP: The “secret” is actually a conjunction of elements. transforming their gardens to decorating and building. During the pandemic, our Our strong dedication to our mission is an essential network across the globe stepped up to help out wherever possible, including element, as well as a proven music-education model that doing everything to make sure that frontline medical supplies were delivered at has been perfected for over 20 years. Our concept travels the earliest time possible. well, due to low logistical, supply chain, technological, We are over the moon to have won two such prestigious awards, especially language and operational complexity. Popular music and when we look at the amazing brands we have been reviewed against and the child enrichment is universal, and our concept allows quality of the judging panel, it really issuch an incredible honor. customization to celebrate local popular music, with Both awards are testament to our wonderful franchisees and support staff the benefit of The School of Rock Method, combining globally who have helped make this possible. It is particularly special to have one-on-one instruction with group rehearsals and live won these during such a challenging time for the world as it demonstrates the strength and resilience of the InXpress business model, as we were able to adapt performances. This integrated SongFirst approach and maximise opportunities. teaches students techniques and theory while also helping them apply those skills when performing with “InXpress’s results-driven ambition, other musicians. This method results in remarkable and lasting musical proficiency. has seen the business grow from a Another important ingredient for this success is our bedroom in Rochdale to become a franchise awarding process, with a clear path that allows candidates to properly evaluate the opportunity and for multi-million-pound business with our team to analyze if the potential franchisee is indeed a franchisees across the globe" good fit for our model.
GLOBALFRANCHISEMAGAZINE.COM 13 GLOBAL FRANCHISE AWARDS 2021
“The last year has reminded us to always BEST FITNESS FRANCHISE put our customers first and make sure that we are providing them with the 9ROUND service and products that they want” Shannon Hudson, co-founder and CEO GF: What is the inspiration for the BEST FOOD & DRINK FRANCHISE 9Round brand? SH: 9Round started from a place LITTLE CAESARS that many businesses do, a desire Marc DaSilva, vice president of international to change people's lives. As busy development parents, owning and running a karate school, Heather and I had a vision. GF: What does winning a Global Franchise Award mean to We wanted to create a place where Little Caesars? busy people, not unlike ourselves, could go to get a killer workout without planning MD: It means a lot to us as a brand. The last year has their whole lives around making a class time, or spending reminded us to always put our customers first and make hours at the gym. My martial arts and kickboxing training, and sure that we are providing them with the service and Heather's own passion for fitness, were the foundation that products that they want – and especially now making we built the business on. sure they feel safe interacting with our brand. At Little Caesars, we always strive to make our customer’s lives GF: What makes the brand an attractive proposition for a easier – in good times and in difficult ones – and I think potential franchisee? that is why we have continued to see loyalty and success. SH: We know the positive impact working out has on people’s bodies as well as on their overall confidence. The GF: In your opinion, what helped consumer desire to live a healthier lifestyle will continue to Little Caesars to come claim this keep the fitness industry in demand.The 9Round workout is award, ahead of other global food simple yet effective and encourages both physical and mental and drink brands? strength. The footprint of a 9Round studio is on the smaller size, so the overhead and cost of entry to the business are MD: We offer families pizza how both relatively low. they want, where they want, and give them access to it however they want. Now more than ever, families are “The footprint of a 9Round studio is looking for options that are not only a great quality on the smaller size, so the overhead pizza, but they want to know they are receiving great value. Little Caesars offers that to our customers better and cost of entry to the business than anybody else in my opinion. are both relatively low”
BEST NURSING & CARE FRANCHISE “Our franchisees are people-driven and strive to give back to their communities, are civic-minded, HOMEWATCH CAREGIVERS have a passion for values, Jennifer Tucker, CEO and are experienced in GF: What makes your brand an attractive leading teams” proposition for a potential franchisee? JT: There are several reasons that Homewatch GF: What do you look for in an investor? CareGivers attracts potential franchisees. For those who seek a way to give back to their community JT: Our franchise owners are a diverse group of while also seeking financial stability, home health care individuals in both background and business acumen, provides a unique opportunity. In addition, demographics suggest but they do share a few common traits. They are people-driven that a growing older population will demand more care needs, and strive to give back to their community, are civic-minded, which provides stability for those looking to get into the home have a passion for values, and are experienced healthcare business. in leading teams.
14 GLOBAL FRANCHISE | ISSUE 6.2 “We’re also looking to sign four more BEST PROPERTY MAINTENANCE FRANCHISE international master franchises to drive global expansion” CHEM-DRY Ed Quinlan, president GF: What’s next for Chem-Dry? EQ: Over the next 12 months, we’re looking GF: How would you describe your brand? to expand our North American presence by EQ: Chem-Dry is a legacy brand with an international adding 75 franchises. We’re also looking to following that continues to grow today. While we’re sign four more international master franchises the leading carpet and upholstery cleaning service, to drive global expansion. Our team is we’ve evolved into so much more throughout our 44 anticipating another record-breaking years in business. Our services have grown to clean year, as we’ve already seen our sales nearly every surface of the home, which is why we’re also momentum from 2020 carry into the first known as the 'HealthyHome Authority'. quarters of this year.
“We are incredibly proud of our renowned international franchise BEST LIFESTYLE FRANCHISE program and our status as the leader in this $29bn industry” Just Cuts Amber Manning, general manager GF: How would you describe your brand? BEST SIGNAGE & COMMUNICATIONS FRANCHISE AM: Just Cuts represents an award-winning, proven business model that’s still delivering FASTSIGNS International for our owners 30 years later. Catherine Monson, CEO Hair never stops growing, and neither have we. While three GF: Congratulations on winning this category for three decades of longevity have years in a row! How does it feel? meant we’ve evolved parts of our salon design, our CM: We are incredibly proud of our renowned uniforms and our systems, international franchise program and our status as the what has stayed the same leader in this $29bn industry. To receive is the inherent flexibility we this recognition once again by such provide our owners. an esteemed organization as Global The Just Cuts brand is built on Franchise is a true honor, and a respect: for our clients, our owners testament to the credibility of our and our teams. You don’t need to be a hairdresser franchise opportunity. to own a Just Cuts, all you need is a passion for Throughout our company’s building your business. history, we’ve taken the steps necessary to maintain a lead over GF: What’s in store for the brand? our competition, and that has fueled FASTSIGNS to push the industry and AM: Currently, the international expansion of franchising community to bigger heights. Just Cuts into the United Kingdom is a key strategic priority. The entire Just Cuts Academy GF: What’s the secret behind successful global franchising? Team is working with our U.K. business development manager to drive salon opportunities CM: It’s critical to understand the varying cultures, in lucrative new locations, increase our JUSTICE laws, and regulations in other countries before pursuing Professional sales and build on existing support international expansion. Many franchisors attempt for our U.K. owners. We also aim to open global growth prior to developing that understanding five new salons in Australia this year and five and it leads to many more complications in the long run, in New Zealand. rather than the success they seek. It’s also imperative to find the right partner to lead your growth in each respective international market in a smart, strategic way. “Hair never stops growing, and neither have we”
GLOBALFRANCHISEMAGAZINE.COM 15 GLOBAL FRANCHISE AWARDS 2021
“We are now recognized as one of BEST EMERGING FRANCHISE the world’s most exciting brands”
GERMAN DONER KEBAB gone on this journey with us and we must thank them for their courage and helping us bring the German Doner Kebab Imran Sayeed, CEO experience to even more consumers across the globe. GF: What does winning this award mean to your franchise organization? GF: What makes your brand unique? IS: We are now recognized as IS: We are bringing consumers a new fresh food one of the world’s most exciting experience that is responding to the needs of Generation brands. Our team is truly focused Z. Freshly prepared in front of customers, our on building the fast-casual brand game-changing kebabs are made using premium, lean, of the future and we have shown succulent meats and fresh local vegetables, served in great ingenuity in what has been handmade toasted breads with unique signature sauces. a hugely challenging period for the The German Doner Kebab experience offers our young industry. During the past 12 months we customers the freshest kebabs, with great value at high have opened new restaurants, transformed our consumer speed and amazing service every time. This positioning offering, provided free meals to NHS workers and grown has been key to our success and will drive greater our total sales by 81 per cent. Our franchise partners have consumer demand and global growth.
BEST FRANCHISE LAW FIRM BEST FRANCHISE CONSULTANCY
FRANCHISE READY LATHROP GPM Doug Downer, president Carl Zwisler, senior counsel & Elizabeth Dillion, partner GF: What does winning a Global GF: How would you describe the offerings of Lathrop GPM? Franchise Award mean to you and the brand? CZ & ED: From 13 offices across the U.S., Lathrop GPM offers a full range of legal DD: We recently won a local award services to businesses, their owners for best consultancy in Australia, and executives. Our Franchise and which was great, but to win this Distribution Law practice group provides global award is overwhelming; this comprehensive legal services to franchisors is recognition of the hard work we and master franchisees at all stages of their all put into the work we do with our development throughout the world. From clients. This recognition will strengthen franchise registrations to preparation of FDDs, our brand and position in the marketplace and open up franchise agreements, franchise relations opportunities for us to continue to expand domestically issues, sophisticated dispute resolution, and internationally. In a strange way it recognizes the international expansion, government sacrifices our families make by allowing us to be so investigations and mergers and acquisitions, involved in the success of our clients' businesses and our we are a “one stop shop” for franchisor’s legal relentless focus on getting the job done. needs. We also provide franchise clients with advice about IP protection, employment law, GF: What sets Franchise Ready apart from other franchise taxation and many other legal issues. consultancies in the industry? DD: We believe we are the best at what we do, we offer GF: What are the qualities that have, in your opinion, earned the widest range of services at the most competitive Lathrop GPM the title of Best Franchise Law Firm 2021? pricing in the market. We’re not just a franchise CZ & ED: We focus on understanding the needs of our franchising consultancy, we become part of the team of every client clients and how best to serve them. The knowledge gained in we work with and we go on the journey with them. serving franchisors in more than 100 industries over our 62 years of practicing franchise law informs our client service. With 30 talented lawyers and paralegals, we offer breadth and depth of experience. “This recognition will strengthen Because of our commitment to franchising, we are active in our brand and position in the virtually every franchise organization – including IFA, ABA Forum on Franchising, International Bar Association, International marketplace and open up Distribution Institute and IFE - and serve in leadership positions. opportunities for us to continue to We incorporate our experience into writing and speaking about franchise law and practice. expand domestically and internationally”
16 GLOBAL FRANCHISE | ISSUE 6.2 “I’m passionate about this industry GLOBAL MENTORSHIP AWARD and have been deeply honored to receive this award”
HELEN DORON EDUCATIONAL GROUP Helen Doron, founder and CEO CONTRIBUTION TO INTERNATIONAL FRANCHISING AWARD GF: This is your second consecutive year winning this coveted category. SUMMA FRANCHISE CONSULTING What does winning Robert Stidham, Summa Franchise Consulting it mean to you and the brand? GF: Congratulations on the win! Judges’ feedback aside, why do you feel you won the Contribution to HD: As with our International Franchising 2021 title? previous global awards, this triumph belongs to RS: I’ve been a committed advocate of franchising the entire Helen Doron throughout my 30 years in the industry, working community and is an around the world. Through both my career and achievement for the entire our business I’ve had the opportunity to work with network. It is gratifying to know that hundreds of franchise companies. I’ve been all of our efforts to support our franchise network fortunate to be a franchise company president, serve as a model for others. We reacted fast and been a successful entrepreneur, been a highly positively to the crisis and used it as an opportunity successful franchise developer, and now a to extend the brand. Thank you for this award and the franchise company investor and chance to once again demonstrate to the world that franchisor. I’ve been involved in the Helen Doron Educational Group is here to give creating thousands of franchise strong support in all circumstances. units and hundreds of millions of dollars of revenue during my GF: What, to you, makes a great franchise career. I’m passionate about mentor in 2021? this industry and have been deeply honored to receive HD: It’s about being flexible and thinking out of the this award. box. We have always provided twenty-four-seven support to our entire network, but the COVID GF: What would you say is the situation really pushed us into overdrive. The crisis secret to achieving international made us realize what we are capable of doing and franchise success? providing. We consulted with and listened to what our franchisees needed to keep their businesses afloat. As RS: Focusing on the potential franchise partners you a result, we not only moved all of our classes online, want to do business with in their markets. Proper we developed new programmes, introduced new planning and research. Commitment of resources. technological platforms and made sure everyone was Having great advisors – an experienced international supported. Our franchisees not only managed to keep consultant and an experienced law firm who going during the crisis, some of them even increased understands franchising are a must. Finally, a focus on their revenues. good partner communication and flexibility, along with patience, is critically important. “Our franchisees not only GF: How did your career in the franchise industry managed to keep going during begin, and how has it developed since? the crisis, some of them even RS: My original career was in technology and I had increased their revenues” a franchise company as a client who convinced me to join them on their franchise development team. I worked for some of the greatest people who got me started on this journey in franchising. Turns out it was a great decision. READ THE FULL INTERVIEWS GF: What has been the most rewarding aspect of your WITH OUR GLOBAL franchising career? FRANCHISE AWARDS WINNERS RS: Building successful franchise companies and AT GLOBALFRANCHISE changing people’s lives for the better, whether that is MAGAZINE.COM/WIRE the people in a franchisor organization at every level or a franchisee and their family.
GLOBALFRANCHISEMAGAZINE.COM 17 INSIGHT
Stress-beating tips from four franchise leaders Running a business isn’t always easy, and sometimes you need to be able to deal with problems from a calm, collected perspective
o commemorate Stress Awareness Month back in April we spoke with four franchise leaders to find out how they T navigate stress when running their organization. As it turns out, there are a handful of useful pointers that you can put into effect today, so that you’re ready the next time a seemingly unsolvable problem arises. BRIAN KELLY PRESIDENT AND COO, “Anyone who works in PHENIX SALON SUITES
business or is a business “The pandemic has impacted most of us in similar ways. Quarantined to your ‘pod’, cooking owner will tell you that it is from home, Zoom meetings, finding new pets, endless streaming of movies, work dress from physically, mentally, and the waist up.
emotionally demanding” “Of course, some have had it worse than others, which then manifests in different levels of stress impacting our daily lives. I have always lived by the basic mantra passed down from my grandfather that ‘in time, this too shall pass’. DAVID SAVITSKY CEO, CAREBUILDERS AT HOME “Personally, I found a new office mate in an eight- week-old golden retriever puppy who lightens up every Zoom meeting with a bark, several squeaks “The onset of the pandemic was “We assembled a task force of of a toy, or some other naughty antic. She brings certainly a stressful experience senior management that met smiles to everyone, particularly when I have to for the CareBuilders at Home every single morning where interrupt international calls for potty breaks! organization, but we realized we identified problems that early on that it wasn’t our stress could arise and addressed that mattered most. Our clients – them quickly. Once we could “I started experimenting with different local mostly at-risk senior citizens – were ease the stress of our clients, coffee roasts and worked on my garden while fearful of the pandemic’s effects. the stress on ourselves would trying to maintain some sort of workout regimen. ease as well. I even bought a surfboard after 30 years in California! For work-related conference calls, I “We needed to ease their stress often allow the folks an opportunity to share first and foremost. CareBuilders “We were so successful that the their day, their week, their life. Some words at Home was very sensitive to the task force began to meet less of loneliness here and there, but mostly folks fear and anxiety our clients were frequently as issues became wanting to stay connected. feeling and we quickly realized fewer and fewer. We had gotten that we needed to redeploy staff out in front of any potential and put caregivers into our clients’ issues before they actually “We tried a few Zoom calls with my elderly homes. Our clients didn’t want became issues. parents and my sister’s young family. We ended people who were in frequent up spending most of the time with the grandkids contact with others coming in laughing at the senior generation’s complete and out of their homes, and “Managing stress is about being ineptitude on all things technical. They never rightfully so. We implemented proactive. You manage what you could get the camera to work! robust testing regimens for our can quickly and decisively, which will hopefully prevent more caregivers, easing the minds of our “Take a deep breath, learn a new recipe, franchisees, caregivers, and most stressful events from occurring down the road.” try a different coffee, and get a dog. importantly, those we care for. It is the simple things in life worth remembering because in time, this too shall pass.”
18 GLOBAL FRANCHISE | ISSUE 6.2 TIM FAGAN PRESIDENT, 1-800 WATER DAMAGE
“When times are stressful, I try to focus on the positives rather than the challenges that may MICHAEL BROWN not be within our control. For example, it’s been PRESIDENT, CHILDRENS LIGHTHOUSE great to see the tremendous efforts the 1-800 FRANCHISE COMPANY WATER DAMAGE team and network have made throughout the pandemic to really band together to safely serve our customers, rather than “Anyone who works in “Worrying is a continuous cycle, focusing on what we couldn’t do. business or is a business and the more stress you have, owner will tell you that it the less productive you will is physically, mentally, and become. So, by focusing on “I’ve found that having regular check-ins and emotionally demanding. And what you can do as opposed keeping open lines of communication help while you have to work hard, to what you can’t, you help to our employees and our franchise owners talk you also have to learn how refocus your energy and can through what is causing them stress and provide to balance that immense overcome challenges that arise. the opportunity for us to listen, understand, responsibility while tending offer advice and maybe open their eyes to to your mental health. the positives and opportunities they may “When it comes to my personal have missed. The truth is that it’s okay to be stress management, I try to start empathetic and acknowledge that times are hard. “At Childrens Lighthouse, each day off right. When I get to we encourage our franchise our office, I take the time to talk owners and the staff at our to a few people in the morning “Another way we manage our own stress is by franchise support center to – I value and believe in the serving our customers. When you help guide focus on the things they can importance of social interaction, a home or business owner through one of the control. Take our approach to and those conversations help to darkest moments of their life and get back on the COVID-19 pandemic, for put me in the right frame of mind. their feet, that feeling of gratification is powerful instance. While we could not and uplifting. It keeps us grounded and reminds control the virus itself, we us why we all got into the restoration business: to could control the safety in “Additionally, I make sure to help people. our schools; the experience spend a few minutes every our students and parents day playing with my children. “Lastly, I make sure to find time for the important received; and the expenses Spending time with them always things like spending time with my family, taking a at each of our locations to puts a smile on my face, reminds walk, reading a book, or watching sports.” try and stay as profitable me of my priorities, and helps as possible. me to de-stress.”
“Personally, I found a new office mate in an eight- week-old golden retriever puppy who lightens up every Zoom meeting with a bark”
GLOBALFRANCHISEMAGAZINE.COM 19 INSIGHT
Five reasons why franchisors fail Potential franchisors need to know what steps to take – and not to take – before deciding to franchise their business
WORDS BY DUGAN AYLEN
round 80 per cent of within 30 minutes. However, not all get everything else right! Combine companies that develop consultants are as ethical as those this with other upfront costs such into franchises don't you’ll find approved by the British as the salary or cost of the person A continue in franchising Franchise Association (bfa). handling leads, the direct costs after the first five years. Franchising Some will take forward the and materials required to set up is a desirable proposition to a process of franchising a business the new franchisee, hardware and business looking to grow rapidly, when it’s not a viable option. software costs, as well as your THE AUTHOR spread its risk and expand on a Unfortunately, this means they franchisee training costs, and the Dugan Aylen is franchisee's investment capital will skirt issues, avoid asking outgoings soon start to build up. head of franchisee and enthusiasm for business difficult questions, and ignore the Without having the knowledge recruitment at The success. However, with franchisor unfortunate answers. Because of what adequate initial capital Franchising Centre thefranchising failure rates being so high in the first many potential franchisors will and resources are required when centre.com five years – and note I’m saying here trust what an ‘expert’ says to them, starting a franchise, a franchisor that the franchisor is failing rather they often start their journey in is set to fail from the start. It will than the franchise model itself, as franchising off on the wrong foot. take time before a franchisor this is key – potential franchisors To avoid this, ensure that you becomes royalty self-sufficient need to know what steps to take – speak to a range of bfa-approved and, in the first 12-to-24 months, and not to take – before deciding to consultants before committing franchisors should not be relying franchise their business. yourself to franchising your on that income for operating So, here are my top five reasons business. Get a range of opinions expenses and keeping the why a franchise may fail because and quotes; you’ll be surprised at franchise business going. of the franchisor. how they may vary. Mismanaging Not talking to a The hidden costs cashflow range of consultants of recruiting 3Developing a franchise 1 Franchising is often the 2franchisees network can be expensive from the standout option for people looking start, both in terms of management It's easy for consultants to entice to expand their business. It allows a business owner to franchise by time and capital outlay. And, you to expand on someone else’s showing a projected business model unfortunately, your investment money and it automatically solves for the next five years that looks can't be recovered until franchisees the issue of who will run your amazing. However, the marketing are appointed and you receive new locations. You won’t find a budget needed to generate interest, initial fees and then a regular more motivated manager than the types of experienced personnel income from them. a franchisee because they are required, or the cost of training So, suppose a consultant has told financially invested in the business. recruits are skimmed over. you that you'll be able to bring in 10 The only problem is most This leaves potential franchisors franchisees in year one, and your potential franchisors haven't got in the dark on how much everything business plan is reliant on this to a clue if their business is even will genuinely cost, how that affects be viable. Here’s why franchisors in suitable for franchising. So, once cash flow and ultimately, often that situation inevitably struggle. a business decides to explore the causes failure. With even the best franchise franchise model, they often seek To go into more detail on this, opportunity, a new concept can out the help of consultants to before signing just one franchisee, typically expect to recruit advise them whether or not they you usually need around 150 leads anywhere between zero should, or could, take the step or enquiries. If the minimum cost to and five franchisees in into franchising. A good franchise generate a lead (or enquiry) is £20, its first year. This is consultant will be able to tell you it will cost £3,000 in marketing just simply because if your business is franchise-able to secure one franchisee – if you you need a
20 GLOBAL FRANCHISE | ISSUE 6.2 very specific type of person, and embark on a new journey with you. Franchisors that ensure they someone who is more open to So, it's important new franchisors have quick and easy-to-use risk, to invest in a new franchise don't leave their first few websites, creative and engaging model, and there are less of these franchisees feeling mis-sold to and social media platforms, and great people around. that they understand the risks. SEO in place are far more likely If businesses are expecting or Of course, they will get all the to succeed than franchises that relying on 10 franchisees to come support from your business, but it don't. However, even with an on board within the first year, not won't all be plain sailing from the acknowledgment that an effective only will the majority be greatly get-go. So, new franchisors must 'out-the-box' digital marketing disappointed, but they will also always be direct, transparent, strategy is needed, the biggest need a considerable pot of cash open and honest with their first problem that franchisors face when to compensate for their lack of few franchisees, that this is a work looking to outsource the build of expected income. This is a big in progress. this digital marketing strategy blow to many new franchisors Support for the next batch of is the sheer volume of agencies and can often lead to them franchisees will be structured available in the U.K. So, how do you having to give up on franchising differently for franchisee number choose the right one? before they've even really started. six, and onwards. This is because My advice is always to try and That’s not to say some brands they will receive a more 'normal' find a marketing partner with cannot grow more quickly, but franchise experience. Ensure you good franchise experience. This many things need to be in place have more tried-and tested-training is fundamental to having an along with a healthy and realistic systems in place before recruiting effective relationship with your budget, and a very good strategy. this batch of franchisees as, at this digital marketing agency, who can stage, anything less can undermine help your franchisees build up the Poor recruitment of your position as the franchisor. business and reach more clients. initial franchisees We’ve helped so many people 4Instead of taking the time to Failing to consider franchising their recruit the right person, franchisors implement businesses over the last 25 years often get caught up in the financial 5 effective digital at The Franchising Centre. Just forecasts, bringing in franchise fees like the win-win relationship marketing strategies a franchisor needs with their and selling their initial franchises Many franchises fail because franchisees, it’s important for us to to anyone that has the money to their franchisors don’t implement guide a business owner to the right invest. However, taking on the effective digital marketing decision to franchise their business, wrong profile of franchisee at the strategies from the start. You and then guide them on onwards start of their franchising journey could have the best business, for every step of their franchising can be the beginning of the end offer the best products and sell journey, as their success is for some brands. Ensuring the at the best prices, but you won't ultimately our success first few franchisees brought into succeed if no one knows about you. and standing as the network have the right mix of This is why it's crucial experts in the collaborative and entrepreneurial to have a strong industry. spirit is critical to successfully digital marketing shaping the franchise model as the strategy. franchise network grows. You're essentially asking the first few franchisees to give you a chunk of money, often quit their job, give up the security and benefits that go with that, and
“Without having the knowledge of what adequate initial capital and resources are required when starting a franchise, a franchisor is set to fail from the start”
GLOBALFRANCHISEMAGAZINE.COM 21 INSIGHT
Three tips for rebuilding an exceptional in-person customer experience post-pandemic
How to ensure that your brand appeals to a different, post-lockdown consumer
WORDS BY BRAD HILLIER
OVID-19 has brought our 100-plus franchise locations the This same approach is being forth a ‘new consumer’ ability to grow and thrive. That’s why taken post-pandemic – prioritizing C that is more thoughtful during the pandemic we rolled out the consumer. There is immense and selective in their all-new safety-first protocols while opportunity to deliver exceptional decision making, seeking out brands quickly adjusting how we interacted in-person experiences that in turn they trust. with consumers. This created an establish and build relationships Companies that successfully opportunity for our franchisees to that drive brand value and THE AUTHOR respond to this new consumer by continue to provide their overall performance. Brad Hillier is CEO of rebuilding an exceptional customer services in a way Here’s how. Re-Bath, the nation’s experience will be the ones to thrive that consumers premier bathroom were comfortable remodeling franchise post-pandemic. But how does one and ultimately rebath.com achieve this? To understand how to react resulted in an immediate uptick in as a business, you must become consumer leads that converted to sales “Regardless of how throughout many innovations or 2020. digital services have taken place throughout the pandemic, people still purchase from businesses where they feel safe, most comfortable, and have an existing brand-trust”
consumer-centric by focusing on shifts in values, behavior, and priorities. This will become a natural, ongoing process of remaining vigilant and observing changes in consumer preferences so that your brand can innovate, adapt, and meet the needs and wants of the post- pandemic customer. At Re-Bath, we understand that customers are the lifeblood of our organization and enable
22 GLOBAL FRANCHISE | ISSUE 6.2 Empathy becomes Regardless of how many the customer experience. This may 1 the core of innovations or digital services require enhanced training, new customer service have taken place throughout the incentives, key messages from There’s no doubt that consumers pandemic, people still purchase leadership. Energized and motivated have a deep understanding of how from businesses where they feel employees who are equipped with the small businesses have been heavily safe, most comfortable, and have resources they need to deliver impacted by the pandemic. But, an existing brand-trust. Strive on your brand promise will have in the same vein, the expectation to establish a positive emotional a direct impact on the customer is that small businesses are connection with customers – experience. They hold the power empathetic to the impact the it will lead to consistent and in ensuring whether or not the pandemic has had on consumers. reliable results. customer leaves the experience As a result, customer empathy feeling emotionally satisfied. will play a critical role in rebuilding Become Remember, too, that while most an exceptional customer experience. 2 experience- brands have integrated new digital Franchise brands must actively centric by connecting technologies in their business models demonstrate that they care, and the customer and as a result of the pandemic, you that the safety and well-being of employee must not lose sight of the value in their employees and customers As mentioned previously, authentic human connection and remains a top priority. You must establishing emotional connection ‘real’ experiences that make your also commit to actively listening with the customer is critical – one of brand great. to your customers – whether that the best opportunities to establish be through in-person interactions, that connection is through the Transparency reigns surveys, or business reviews – this experience with your brand. 3 supreme If the pandemic taught us anything, will allow you to gain a deeper More attention needs to be placed it is that things change rapidly and understanding of them and deliver on perfecting the personalized consumer sentiment and behavior on their expectations. interaction between the customer and the employee during the visit. evolve in response. This requires a While many franchise brands new level of improved communication have made impressive digital and transparency with customers in improvements amid the pandemic, order to gain and rebuild trust. equal attention should be placed The business environment on energizing frontline has changed and the way you workers to rebuild communicate with your customers and reinvigorate must be elevated. Continue to inform customers about changes and updates to operations, services, safety protocols, new offerings, and more. When you show that you are being proactive and motivated by your customers’ best interests, you are building their confidence in your brand. It is critical to go above and beyond with every detail in order to maximize transparency – something consumers now come to expect. Franchise brands that are prevailing are the ones that have acted compassionately and sensitively toward consumers and are reprioritizing the customer-service experience. With a customer-centric mindset, franchise businesses can emerge from the pandemic having strengthened their relationships with customers – in turn, impacting bottom line results.
GLOBALFRANCHISEMAGAZINE.COM 23
POWERED BY
KEEP IT SIMPLE: study reveals that streamlining marketing can boost your brand Franchise owners can sometimes be overwhelmed by marketing, but simplifying it can be a surefire ticket to success
WORDS BY KIERAN MCLOONE
he world of digital revealed 66 per cent of ● Increased time and marketing can be a franchise owners would prefer bandwidth: “Fewer vendors means T complicated beast to work with one vendor for franchise teams no longer have to to the uninitiated; their marketing needs. spend days speaking to multiple particularly for franchises that “Last decade’s conventional points of contact and diving into use multiple marketing platforms wisdom told brands not to keep dozens of different reports. With and yet seem to run into the same too many of their eggs in one a unified marketing partner, problems as their competitors proverbial marketing basket. But franchise corporate teams (who are who have zero strategy. that was before the number of already stretched thin) get more Specifically: a lack of clarity from marketing technology solutions time and energy to be strategic. data, confusion on how to act on grew from 150 in 2011 to 8,000 statistics, and where a business in 2021,” says Kenny Wu, ● Strategic clarity and can grow in its market. director of vertical marketing optimization: “Marketing One of the main causes of these (franchise) at Scorpion. “In such channels that were previously pain points? An oversaturation a fragmented digital world, siloed with various vendors are in the number of marketing tools a unified marketing partner unified with one partner system and vendors. After all, the digital provides brands with several key and dashboard, allowing brands marketing landscape has grown advantages and efficiencies: to see what is working with exponentially over the previous decade, but that has only made it trickier to narrow down what works for your brand. “Last decade’s conventional The headache stemming from adopting, integrating, and wisdom told brands not to keep analyzing all these marketing options is acutely felt by too many of their eggs in one franchises. In fact, according to a study conducted by proverbial marketing basket. Scorpion, only 30.8 per cent of those owners feel that they are But that was before the number harnessing the potential of their digital marketing tools. of marketing technology Essentially, this results in solutions that are overpaid solutions grew from 150 in and underutilized. It’s no wonder that the same study 2011 to 8,000 in 2021”
GLOBALFRANCHISEMAGAZINE.COM 25 “Finding underutilized data can be a treasure trove for franchises looking to break out of a growth plateau. As such, brands that are able to unify and centralize data from various channel silos will have a huge leg up”
less guesswork and confusion. than 15 per cent are ‘extremely care of professionally, properly, Franchises can build a more holistic satisfied’ with their digital and promptly through all aspects and harmonious marketing plan marketing performance. The of their customer journey. while getting guidance and advice former of these statistics is “In my experience, the total from a strategic partner. undoubtedly positive, but what’s number of leads isn’t the problem causing this disconnect between holding franchises back from ● Technology integration: vendor support and marketing growth. Rather, the chokepoint “One unified partner means fewer effectiveness? And perhaps comes from the way potential custom API integrations for all the more importantly, how can these customers or leads are being tools and apps a franchise needs factors then be funnelled into taken care of. to stay current with today’s digital exceptional customer service? “Sometimes, that boils down to marketing landscape. Franchises As Brad Voreis, senior vice service touches as basic as making get a streamlined and seamless president of strategic marketing sure your staff is picking up the user experience when it comes for Scorpion, explains: “One phone when it’s ringing, and not to planning and executing their of the best key performance letting it go to voicemail. Or getting marketing strategy.” indicators that franchisors, as back to a potential customer well as franchisees, can focus on immediately after you receive The key to conversions surrounds phone/lead handling a lead via an email or alert. In Scorpion’s data indicates that and closing ratios in the field. addition, listening and reviewing 68 per cent of business owners With form submissions and inbound leads, measuring closing feel that their digital marketing phone calls being the lifeblood ratios, and coaching franchise vendors are ‘very helpful’ in of almost any service brand, it is teams on their interactions with reaching their goals, yet less critical that customers are taken customers is key.
26 GLOBAL FRANCHISE | ISSUE 6.2 POWERED BY
“Giving constructive feedback asset, this can dilute the main What this shows is that to location staff is a necessary takeaways and inhibit useful franchises need consolidated part of raising the bar, both in development action. reports that tell more holistic the office and in the field. Simply From franchise owners who stories of what’s working put, at the end of the day if your reviewed marketing reports daily across their marketing mix. customers aren’t your number to those who seldom looked at These reports need to be one focus, then you need to them, the number one pain point able to show the synergies of reevaluate your priorities!” in Scorpion’s survey sample how distinct channels affect was not being able to interpret and positively influence a Streamlining your or understand the data. When customer’s journey. solutions taken in conjunction with the "[I’d like to] have one As mentioned above, one sheer number of marketing application that does of the primary challenges options available to franchises everything, instead of multiple that franchises face is an nowadays, it’s easy to see how applications for each aspect overabundance of marketing data processing and analyzing data of the franchise. A ‘hub’ for coming from siloed or disjointed from dozens of disconnected everything,” said a home sets of tools and vendors – channels can be extremely time- services franchise surveyed rather than acting as a valuable consuming and frustrating. in Scorpion’s recent study.
THE BIGGEST TRENDS COMING TO SOFTWARE AS A SERVICE Eric Tanner, senior vice president of franchise marketing at Scorpion, outlines three of the leading trends that brands will need to know about within the SaaS space:
Confidence within the As franchises become more technically Innovation and growth within franchise community savvy, they will start looking for ways the SaaS space over the next will increase as it to utilize data that had previously been few years will be tremendous relates to incorporating overlooked. Finding underutilized and the companies that SaaS into their day-to- data can be a treasure trove for are able to adapt quickly to day operations. Many franchises looking to break out of a market changes that better manual processes growth plateau. As such, brands that suit their clients will win. The will be replaced by are able to unify and centralize data SaaS companies that can automation and the from various channel silos will have a easily be integrated into a use cases for artificial huge leg up. Conversely, businesses business’s current operations intelligence will that don’t centralize their data will and are easy to build on top become more and become increasingly dependent on of will emerge as the leaders more apparent API connections to third parties in this segment
Only 31% of franchise 59.9% owners feel like they are harnessing the potential of franchise owners using two or more of all their digital vendors want to consolidate marketing tools
GLOBALFRANCHISEMAGAZINE.COM 27
BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE HELEN DORON Changing EDUCATIONAL GROUP
Established: 1985 lives with Number of franchised outlets: Over 1,100 Locations of units: Albania, Austria, Bosnia and Herzegovina, Bulgaria, Chile, China, Croatia, Cyprus, Czech Republic, Ecuador, Estonia, France, Germany, Hungary, Israel, Italy, Kazakhstan, exemplary Lichtenstein, Lithuania, Macedonia, Mexico, Montenegro, Panama, Peru, Poland, Portugal, Romania, Russia, San Marino, Serbia, Slovakia, Slovenia, South Korea, Spain, Switzerland, Thailand, Turkey, Ukraine, Vietnam education Investment range: €150,000 - €250,000 Minimum required capital: €200,000 Contact: [email protected] Helen Doron Educational Group shines a spotlight helendorongroup.com on its first-class franchisees
roatian national the family was there temporarily franchisee for her husband’s work contract, Danijela Haralovic she sought English lessons for her C then two young children that didn’t discovered Helen Doron include translation to Hungarian, English while living in Hungary. As a language they didn’t speak. She also sought an organization using the immersion method without any translation – just pure English. Not familiar with the Helen Doron brand, Danijela recalls: “I happened to see a banner on a house that advertised Helen Doron. It said ‘English for All Children’, which I liked the sound of, so I Googled we lived in Hungary.” the company and found there was Her children enjoyed their classes a Learning Centre in the area where and the two years went by quickly. “After witnessing how positively my daughter and son reacted to the Helen Doron lessons, I immediately fell in love with the methodology.”
THE NEXT LOGICAL STEP Danijela had worked in a managerial position in the banking industry previously, and had every intention of returning to the career she had taken a leave of absence from. After being away though, she saw the situation from a different perspective. “It was a safe and secure job for life, but they didn’t really care about the employees as individuals. I didn’t want to go back to having someone standing over me, bugging me, telling me what to do.” So, she decided to launch a
30 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxHelen Doron Educational Group
GLOBALFRANCHISEMAGAZINE.COM 31 GLOBALFRANCHISEMAGAZINE.COM “Field visits are madevisits are “Field location in the to every extra offer to country teachers and to support franchisees, both new and experienced” Upon opening the first Helen opening the first Upon Doron English location in Zagreb English location in Zagreb Doron quickly the franchise in 2009, across to 29 centres expanded teachers Doron Both Helen Croatia. become successful have and parents years, 12 the last over franchisees to the is a true testament which and one’s of the franchise quality within the Helen to grow ability network. Doron “We offer flexible working hours hours working flexible offer “We a have children three “My to be better,” Danijela continues. to be better,” workshops educational have “We and the teachers for and seminars the held throughout franchisees made visits are Field year. entire location in the country to every support to teachers extra to offer and both new and franchisees, also are Teachers experienced. on to improve the opportunity given offering of skills by variety wide a them additional assignments not to the classroom, related always events. such as promotional in earning interested employees for who those and for money extra at home. Employees’ children have Doron attend Helen children free. for lessons and kindergarten learning Doron combined Helen is the which years, of 29 experience Helen many as how same number currently locations there Doron at five enrolled Toni in Croatia. are of three, at the age old, Iva years old! months four and Dunja at only with the program satisfied very I am learned, have they and everything children.” my as are “After witnessing how positively positively witnessing how “After built was network franchise “My locations, four have “I currently considering anyone “For EMPOWERING FRANCHISE FRANCHISE EMPOWERING PARTNERS its empowers Croatia Doron “Helen striving constantly by employees completely different career. different completely to the and son reacted daughter my lessons, I immediately Doron Helen with the methodology in love fell a Helen that becoming and knew the was myself franchisee Doron career. logical step in my next of mouth. word based on mostly of years three Within the first I had eight franchisees operation, in eight locations. operating and lessons, teachers Excellent students satisfied clients and happy tools. the best marketing are and 1,300 students. In 21 teachers, 29 locations, have we all of Croatia and teachers active 100 over students! My than 5,000 more include maintaining goals future of lessons quality the excellent more and bringing them to even I plan on Croatia. students across network the franchise expanding the SET introducing by in Croatia teachers) model (self-employed otherwise not in cities and towns centres. Doron Helen by covered franchise options, want I would that it is a fulfilling them to know with Working job. and rewarding experience is a joyful children such a positive and helps create have must always You environment. on the details regarding eye a keen and students, so every both parents experience. new is a totally day being part of an wonderful It’s network.” international franchise BEHIND THE BRAND: PARTNER CONTENT Behind the Brand Brands - Lift
AT A GLANCE SNAP FITNESS
Established: 2003 Number of units: Over 1,000 A new era for Location of units: 20+ countries Investment range: Single unit: $350,000 - $750,000 Master franchise: $2m - $5m Minimum required capital: Lift Brands Single unit: $75,000+ (varies by country) Master franchise: $2m snapfitness.com The premium fitness franchisor is investing in its people, and supporting franchisees like never before AT A GLANCE ift Brands is the parent investment in the business in certain 9ROUND company of innovative areas, or taking that financial pressure Established: fitness concepts such as off where we can,” says Menzies. 2008 L “We made some very heavy Snap Fitness, Fitness On Number of units: Over 600 Demand, and the minority partner for investments in the business to bring Location of units: boutique boxing brand 9Round – put on significantly more support. In 15+ countries simply, the organization understands fact, we were one of the only health Investment range: the entire gamut of what workouts and wellness franchises anywhere Single unit: $150,000 - $250,000 can mean to people. But even with that hired more people in every Master franchise (Europe): $1.5m - $3m this knowledge and experience, the single one of our regions, even Minimum required capital: franchisor wasn’t exempt from the though we had basically removed all Single unit: $50,000 (varies by country) Master franchise (Europe): $1.5m challenges presented by COVID-19. of our revenue streams. “Short-term financial improvement 9round.com It’s fortunate, then, that since June 9round.co.uk 2020 Lift Brands has been helmed by isn’t going to work; it’s going to be global CEO Ty Menzies: a man deeply a marathon. So we doubled our U.K. immersed in the fitness industry, team, went from 35 to 43 in our APAC having opened his first of many business, and recruited almost 15 a strong focus on technology through health clubs in his early 20s. Menzies new support people in our U.S. and its Snap Fitness concept. has used this experience to help guide Canadian business during COVID.” “One of the things we heard in the organization’s network over the a lot of feedback was that people past 12 months, and despite having REPOSITIONING FOR are a bit lost with how they get to close a number of clubs in various SUCCESS started in fitness and track their regions, Lift Brands is coming out the As well as providing its network with progress,” explains Menzies. other side swinging. unparalleled levels of support, Lift “Snap Fitness is focused on a “It’s been a challenging 12 months Brands used the past year to take a fun, supportive environment to for sure, but the big thing I’ve led step back and revisit where it stands help those intimidated by gyms on has been very heavily focused on within the competitive fitness market, in getting started. We’re heavily culture: on what we can do to help our particularly for Snap Fitness. This invested in technology with a franchisees, whether that’s through self-reflection led to an ambitious bespoke member app to help in financial abatements, deferrals, repositioning strategy, which involved aggregating and making sense of all the detail required to stay motivated and focused on a fitness journey.” The app is set to launch in September, and represents the forward-thinking approach that Lift Brands is taking to its future growth. The fitness industry may be very well established, but this organization isn’t resting on its laurels; the Lift Brands of tomorrow is embracing the most popular trends today, and leading the way for the future of fitness. Lift Brands is a master developer for 9Round in Europe and is seeking master franchisees for Snap Fitness globally and 9Round in Europe.
32 GLOBAL FRANCHISE | ISSUE 6.2 SHOW PREVIEW: PARTNER CONTENT
AT A GLANCE A must-attend for THE GLOBAL FRANCHISE MARKET Where: Dubai World Trade Centre, the Middle East United Arab Emirates When: 15 to 16 November, 2021 Franchisors and franchisees alike converge for Contact: Wissam Ezzeddine - business development manager, this unmissable networking opportunity [email protected], direct: +97145208861 globalfranchisemarket.com
GFM is the one and Talk’. While the webinars are a only franchise event stage for brands to reach out to T in the Middle East, MEA potential partners and present that provides all its their specificities and future stakeholders an entire ecosystem developments, sessions like The to develop business between Franchise Talk deliver daily articles brands, franchisees, and investors on trends, market updates, and in a real, concrete manner. a monthly newsletter to the MEA The Global Franchise Market franchise community. – TGFM – is organized annually The Franchise Talk has by INDEX Conferences and successfully reached over 11,000 Exhibitions, under the patronage engaged readers in the last year. of the Department of Economic The newsletter also attracts the Development – Dubai, along with franchise associations that see our strategic partnership of both offering and the interconnection Franchise Souq, co-founder and between all our activities, as this Francorp Middle East, Platinum results in more development for Sponsor. This year it will be held their members. in Dubai World Trade Centre, UAE, on November 15 and 16, 2021. Strategic market entry As Dubai is one of the world’s An award-winning safest places for business, TGFM event continues to serve as the industry's TGFM was recently awarded one-stop shop for the regional the title ‘Franchising Event of franchise community. the Year 2020’ by MEA Markets It’s no secret that Dubai is the magazine. The exhibition has entry point for any international been recognized by the prominent brands willing to expand in the MEA; business magazine as the best moreover, it is often the regional HQ amongst its peers in the Middle to a wider regional spread. East and Africa region. It is fortunate that the U.A.E. In addition to its ability to achieved one of the best responses deliver ROI to its participants, in pandemic management and that TGFM offers a unique platform for includes in-person exhibitions brands to conduct pre-arranged being held since December 2020. meetings with high-net-worth Therefore, the market recovery is investors and franchisees, through the fastest in the region. ‘The Franchise Business Hub’. TGFM is not only an exhibition TGFM engages in perpetual but much more, and this is ways with its participants through what was recognized with the various activities such as ‘Tuesday Franchising Event of the Year Webinars’ and ‘The Franchise 2020 Award.
“In addition to its ability to deliver ROI to its participants, TGFM offers a unique platform for brands to conduct pre-arranged meetings with high-net-worth investors and franchisees”
GLOBALFRANCHISEMAGAZINE.COM 33 FRANCHISING IN AUSTRALASIA AUSTRALIA: THE BOOM OF FRANCHISING DOWN UNDER The Australasian market has always been attractive to western franchisors looking for a consumer base not wildly unfamiliar, but in 2021, this enticing country holds more potential than ever before – and the franchise industry is taking notice
REPORT BY KIERAN MCLOONE
34 GLOBAL FRANCHISE | ISSUE 6.2 or decades, Australasia with prime cities including has proven a fruitful Sydney, Melbourne, Brisbane, FCA PARTNERS WITH F endeavour for Perth, and Adelaide. GLOBAL FRANCHISE franchisors who A shift could be on the cards, too, In May 2021, Global Franchise pursue markets beyond those which franchisors would need to announced a partnership closer to home, like Europe or be mindful of when planning their with the Franchise Council of Australia (FCA) as part of its North America. Its almost entirely market penetration strategy. continuing mission to bring English-speaking population “We have seen, since the together leading franchise of 30.63 million people across pandemic, a large movement of associations. At the time of the Australia and New Zealand are population towards regional cities announcement, Mary Aldred, CEO of the FCA, had this to not only familiar with franchising and communities, and we do see say: “In addition to conveying as a business model, but they’re this trend increasing,” says James information about franchise often highly engaged with small Young, head of franchise sales initiatives and opportunities businesses that are part of wider, and development at Aussie-based in Australia to the rest of successful franchise networks. franchise consultancy, DC Strategy. the franchising world, [the partnership] will promote Restaurants of all kinds are “The largest regional cities are access to the Franchise Council as popular in Australasia as Newcastle, Gold Coast, Sunshine of Australia to an international they are elsewhere in the world, Coast, Central Coast, Wollongong, audience and we look forward but several sectors have seen and Geelong. to offering assistance to those seeking to enter Australia.” increased demand as a result “Every brand will have its own of the pandemic. These include unique prime markets and the aged care, education, delivery and strategy will also be specific to courier services, and children’s the individual franchisor, whether play centers. this be master by state, country, Without further ado, let’s dive multi-unit, or direct. Understanding into the largest of the Australasian the required skill sets of both the regions: Australia. international franchisor and their local partner will determine The Australian which is the best strategy.” franchising gold rush The latest statistics coming out of Australia indicate that there are around 90,309 franchised businesses operating in the country, employing a total of 514,761 people. This figure includes all the big names you would expect – Starbucks, McDonald’s, Burger King (known locally as Hungry Jacks) – as well as many domestic chains holding their own against even the most established international competitors. One important thing to note early on, however, is that Australia’s vast land mass is not indicative of its franchise potential. The country is huge compared to markets like the U.K., with Australia covering around 7.69 million square kilometres, and the United Kingdom comprising a much more modest 242,495. Around 90 per cent of Australia’s population, though, is located close to the coast;
GLOBALFRANCHISEMAGAZINE.COM 35 FRANCHISING IN AUSTRALASIA
ESSENTIAL STATISTICS ABOUT THE AUSTRALIAN FRANCHISE MARKET
Around 90,309 franchised businesses operate in Australia, employing 514,761 people
AUSTRALIA’S MAIN TRADE PARTNERS ARE China, Japan, AND the U.S.A. KFC first appeared in Australia in 1968, and the fried chicken franchisor now serves The first INTERNATIONAL more than two FRANCHISORS like million customers McDonald’s and Hungry Jacks brought their every week concepts to Australia in THE LATE 1960S
DUE TO THE IMPACT OF THE CORONAVIRUS, THE FRANCHISE INDUSTRY’S REVENUE IS EXPECTED TO DECLINE AT AN ANNUALIZED RATE OF 2.6 PER CENT BETWEEN 2020-2025 Source: IBISWorld
36 GLOBAL FRANCHISE | ISSUE 6.2 Prospering beyond the pandemic “We have seen, since the pandemic, a While Australasia certainly large movement of population towards wasn’t immune to the effects brought on by the global regional cities and communities, and pandemic, many will know that Australia and New Zealand’s we do see this trend increasing” rapid response and lengthy lockdowns helped to combat the over the past year. Brian Keen, founder of Australian virus as much as possible. All of these support packages franchise consultancy Franchise And the business world is contribute to a renewed sense Simply. Working in franchising continuing to be supported by of optimism about the future for over 30 years, Keen has targeted loans and incentives to of franchising within Australia. seen countless industry highs get operators back on their feet. Many suppliers within the and lows, and has nothing but These include an SME Recovery country, for instance, have seen optimism for the coming months: Loan Scheme, which includes a unparalleled levels of interest in “After a short lapse when the maximum loan size of $5m and an their services. impact of COVID was first felt 80 per cent government guarantee. “There’s a very strong national in mid-March 2020, our market On the employment side of things, there’s also a JobMaker sentiment around business responded strongly, resulting in Hiring Credit, which encourages growth,” says James Young. “We us having the busiest period since bosses to hire young people have seen more franchise sales we founded this business model to new positions. Eligible in 2021 for our clients both 11 years ago,” he says. employers can receive payment domestically and internationally, “We’ve seen an increase in for up to 12 months, with than at any other year in DC activity in the ever-popular employers credited $200 a Strategy's 35-year history. domestic tourism market, QSR, week for additional employees “People are changing their and B2C service sectors, and in aged 16 to 29 years, and up to behaviour and are reflective of B2B service, health and beauty, $100 a week for new employees what they want from life. This leads automotive, and construction. aged 30 to 35 years. This would to people questioning traditional This is encouraging from our be particularly attractive to employment and enquiring about point of view because they are hospitality businesses, where what else is out there.” all areas where we have many employment has taken a real hit This is a sentiment shared by years’ experience.”
GLOBALFRANCHISEMAGAZINE.COM 37 FRANCHISING IN AUSTRALASIA
10 REQUIREMENTS OF AN AUSTRALIAN FRANCHISE DISCLOSURE UNDERSTANDING AUSTRALIAN DOCUMENT ENTREPRENEURS Experience of all directors and management staff Greg What do franchisors need to 1 Nathan, the bear in mind as we come out of Any past or ongoing litigation, both founder of the pandemic? franchisor and franchisee Australian 2 consultancy “Regular social contact Past and present franchisees with Franchise through online and face-to- contact details Relationships Institute, face meetings can be useful, 3 provides some crucial and facilitating small group Any payments to agents or suppliers information about franchising discussions where franchisees in a post-COVID world. share their concerns and 4 solutions is also extremely All costs associated with the franchise, What are some of the main powerful. There is a general 5 such as fit outs, permits, legals, and concerns for Australian sense of tiredness in the any costs associated with the purchase, franchisees right now, community. Franchisors can including stock and how can franchisors help their franchisees to refire alleviate these? up by revisiting their missions Amount of royalties and marketing funds and helping franchisees to 6 payable and method of payment “The uncertainty created by reconnect with their goals potential lockdowns is the biggest and values.” Full, audited financials of the franchisor concern. Franchisors can help 7 company by ensuring each franchisee has What distinguishes Australian a contingency plan in place to entrepreneurs from the rest Termination by either party arrangements deal with the unexpected. There of the world? 8 and causes is a multi-speed economy, with some networks exceedingly busy “While the qualities of Transfer cost if franchisee sells the while others have lost customers entrepreneurs are universal, 9 franchise and are quieter. Franchisors can there are some mild cultural help franchisees with advice on differences. Australian Number of master franchise operators, operational efficiencies, moral entrepreneurs tend to be down 10 if any support, and advice on how to to earth, direct, and a little rebuild their customer base. understated. We tend to listen well, have a thirst for learning, “If franchisees are operating and are good at innovating to from rented premises, assistance overcome adversity. Australians with lease negotiations has been also tend to be collaborative, valued, and where franchisees relaxed and family oriented, have legitimate cash flow and many involve their spouse problems, fee reductions and in the business. Family support financial support has obviously is extremely important when also been valuable.” growing a business.”
John Moyes, a veteran Appreciate the franchise consultant in Australia local flair and New Zealand, is also excited The groundwork is there, about what the future holds and franchisors and industry for Australian franchisors experts alike are confident nationwide: “I am very optimistic about Australia’s potential for about the sector in general as franchising moving forward. But it has remained very resilient how exactly should franchisors through the pandemic, and is begin to tackle their entry growing back very fast due to strategy for this dynamic market? the assistance of many great Even some of the big players franchisors and their franchisees. didn’t get it right the first time “As a country, we are bouncing round. As Brian Keen explains: back rapidly, and the state that I “Companies such as Subway, live in – Western Australia – has Domino’s Pizza, Krispy Kreme and a few billion dollar surplus. Other Starbucks are among many which states are also catching up.” really only struck a foothold in
38 GLOBAL FRANCHISE | ISSUE 6.2 Australia after several attempts state to state when they first try by age from 15 to 21,” says John and changes of ownership, to enter a new area; similar to Moyes. “Rentals, especially within because they did not understand the differences between England, shopping malls, are also higher the differences in the market Scotland, and Ireland in the U.K.” than a lot of other countries. S/C when they first arrived. As well as misunderstandings leases are usually for five years “Challenges arose because of between states, incoming with annual increases of between these concepts not understanding franchisors will need to be aware 3 and 5 per cent. Some will do the spectrum of local business of the national financials which another five-year option and customs and habits. This includes may be wildly different from their some will do a 10-year lease.” a lack of understanding of the domestic counterparts. differences between regions, “Wages for staff are quite Nailing the entry which applies to Australian high compared with many While master franchising is companies as well. Some do not other countries, and are set by often viewed as the defecto always accommodate the marked the government; this includes method of international differences in the market from minimum wage, which increases expansion, Australian laws and
“The uncertainty created by potential lockdowns is the biggest concern. Franchisors can help by ensuring each franchisee has a contingency plan in place to deal with the unexpected”
GLOBALFRANCHISEMAGAZINE.COM 39 FRANCHISING IN AUSTRALASIA
“There’s a very strong national sentiment around business growth”
regulations have incentivized groups will continue to emerge Malaysia, Vietnam and Korea. other forms of market entry across the traditional sectors, These countries have massive over the years. As John Moyes and I predict these will be joined populations and are thirsty for explains: “Most franchisors do by the establishment of new Western concepts.” not in fact use master franchise systems across a wide range of So whether you’re entering operators, partly due to the law of niche business sectors which are Australasia for the first time, misleading and deceptive conduct new to the franchise model.” or expanding your footprint in which is a little difficult to control the region and beyond, make when you are delegating someone Your next sure not to underestimate the else to run the business. international market? franchising opportunities on offer “Having said that, it can be Once all of the fundamentals in Australia. It could prove to be cheaper for the franchisor to of Australian franchising are your biggest market yet. have a state master or developer. understood, it’s a truly lucrative This is more prevalent in service market unlike any other. Its industries, and certainly less in average sales per unit and something like fast food.” performance rank it as one of Multi-unit franchising, on the the highest countries in the other hand, is seeing a continued world, which is why so many boom across the globe – as international brands have found indicated by Global Franchise’s success once a correct strategy recent month-long content has been followed. program, Multi-Unit Month. And while Australia is a Australia is no stranger to this bonafide market in its own form of business ownership, and right, franchisors often use it it’s one that we’ll likely see more as a strategic pathway into the of as the market develops further. untapped Asian region. “I believe we will witness a “Australia and New Zealand continued strong growth in multi- are seen as stepping stones to unit franchising in particular,” most Asian markets – especially says Brian Keen. “New franchise China and India, but also
40 GLOBAL FRANCHISE | ISSUE 6.2 FRANCHISING IN AUSTRALASIA NEW ZEALAND: AN UNDERSTATED FRANCHISING GEM For many years, savvy franchisors have recognized the benefits of the New Zealand franchise market – thanks to its consistently high ease of business rankings, track record of deregulation, and ongoing government developments. But after its exemplary handling of a global pandemic, this little island is garnering some huge interest from international brands
WORDS BY KIERAN MCLOONE
GLOBALFRANCHISEMAGAZINE.COM 41 FRANCHISING IN AUSTRALASIA
ven before the world witnessed its impressive E handling of the coronavirus pandemic, New Zealand had a lot going for it with regards to international “New business development. Its distinct Zealand lack of ‘red tape’ and continued business reforms to make typically international trade as seamless as possible have elevated the features a country beyond its close neighbors, and have positioned it as a true relatively benign franchising frontrunner – despite its small size. competitive There’s no getting around the environment fact that across its entire land mass, New Zealand only has a compared to, population of just below five million people. This shouldn’t for example, dissuade franchisors from bringing Association of New Zealand (FANZ). their concept to the Kiwis, but Australia “Notwithstanding, New Zealand it’s important to consider if an did have ‘lockdowns’ where organization is looking for the kind or the U.S.” residential and commercial of numbers that may be found in a movements were curtailed; in country like the U.S. international travel begins to open particular, nationally from late That’s not stopping even the the world up again. March through early May 2020, largest and most exciting U.S. “New Zealand has been very and in Auckland, especially, in brands from exploring New lucky to manage and maintain February 2021. Personal and Zealand’s potential, however. In extremely low levels of COVID-19 business international travel had April 2021, for instance, flexible community infections, domestically been curtailed until April, with the workspace franchisor IWG – with the majority of infections commencement of a quarantine- announced plans to aggressively arising from returning kiwis and free travel arrangement between expand throughout Australasia, in quarantine facilities,” says New Zealand and Australia (aka with Christchurch, Wellington, and Callum Floyd, managing director ‘Trans Tasman bubble’).” Auckland being targeted as key of Franchize Consultants, and markets throughout the country. chairperson of the Franchise
An understated gem It shouldn’t come as any surprise NZ’S LOVIN’ IT that big brands are targeting New It’s not just the consumers of Zealand for growth, of course. After New Zealand who support the all, it’s consistently recognized country’s franchise industry as the least corrupt country in and, in turn, its economy. Last the world, and pre-pandemic, year, McDonald’s New Zealand almost as many tourists visited its spent $156.9m on ingredients ordered from the nation's primary friendly shores on a yearly basis as industries, with a further $222.5m people living in the country. This of produce exported. In total, is a figure that’s naturally taken a the golden arches injected considerable dip since its complete $379.4m into New Zealand agriculture in 2020. lockdown, but certainly expect it to climb in the coming months as
42 GLOBAL FRANCHISE | ISSUE 6.2 MUST-KNOW FACTS AND STATS ABOUT NEW ZEALAND’S ECONOMY
New Zealand spent $926m less on COVID relief than it had expected, so the rest is funnelled into COVID recovery
, ofOne-third New Zealand’s population lives in Auckland
NEW ZEALAND’S INFLATION RATE IS THE LOWEST IN THE INDUSTRIAL WORLD
On April 30, 2021, THERE WERE JUST 23 active cases of COVID-19 IN MANAGED ISOLATION, WHICH WAS THE COUNTRY’S LOWEST TOTAL IN NINE MONTHS
Approximately 97 PER CENT of businesses in New Zealand have FEWER THAN 20 EMPLOYEES
GLOBALFRANCHISEMAGAZINE.COM 43 FRANCHISING IN AUSTRALASIA
An extension of Australia? targeted entry strategy is needed handling of the coronavirus Many international franchising deals for both countries, separately. It is pandemic, but that doesn’t involving New Zealand seem to be part of a very rare for a company to enter mean that the country has been larger Australasian strategy. This leads to New Zealand from Australia or vice completely spared the sometimes the impression that New Zealand is simply versa without some considerable devastating impact that this global an extension of the Aussie market – an adaptation to their local unit-level event has had on the franchising impression that couldn’t be further from model,” explains Floyd. space. As Callum Floyd explains: the truth, in the same way that Canada isn’t “There is no question that New simply the 51st U.S. state. The best-suited Zealand franchising has been “Historically, it was common for industries for growth impacted negatively, in general, by international franchisors to encompass Much like other leading franchise COVID-19, although there are clearly New Zealand within a wider Australasian markets, New Zealand is no some firm’s whose services have opportunity, although New Zealand firms stranger to the variety that grown (such as supermarket and were and are sometimes granted Australasian franchising can bring. While the courier operations). rights,” says Callum Floyd. “Not surprisingly, restaurant industry is rife with “However, improvements in huge contenders – both domestic the bundling of Australia and New Zealand perceptions are noted this year. and international – other areas rights appears less common, as it should be, Franchize Consultants’ franchising- such as home services, real in the last decade – perhaps as international specific business confidence estate, and education are just as franchisors recognise the unique research (conducted over 11 years) lucrative for the right kind of circumstances, opportunities, and challenges of franchisors in January 2021 brand. Make no mistake: there’s associated with addressing both markets.” reported, in general, improvements plenty of domestic competition. That’s not to say that Australia and New in perceptions toward general But that doesn’t mean that a Zealand don’t share some commonalities. The business conditions, access to strong international brand travel agreements currently in place between suitable franchisees, staff and can’t still capture the minds of both regions, for example, allow business locations, and growth prospects transactions to continue, even while New local consumers. for themselves. Zealand locks down from the rest of the world. “Notwithstanding, history has “Challenged or reduced “Both markets certainly have similarities, shown there is always opportunity areas included perceptions but there are as many differences meaning a for a strong organized operator to enter – and New Zealand typically toward sales levels per features a relatively benign franchisee and franchisee “Not surprisingly, the competitive environment compared profitability. Importantly, to, for example, Australia or the U.S.,” and not surprisingly, COVID-19, bundling of Australia and says Floyd. and its varying impacts, were noted by franchisors as the number New Zealand rights appears The problems of one challenge to their company’s less common, as it should a pandemic We’ve touched on New Zealand’s be, in the last decade”
44 GLOBAL FRANCHISE | ISSUE 6.2 franchise development for 2021. “New Zealand’s relatively small population “For most New Zealand FACE-TO-FACE means total potential chain size is limited companies, contemplating or COLLABORATION and outside of Auckland (1.6 million) there is servicing international growth is One element of the franchise some travel required across both North (3.8 currently more challenging. The industry that was severely million) and South Islands (one million). recent easing of restrictions with impacted by the pandemic “Domestically, given the above, single- was industry events, which Australia has certainly helped, are often a prime way for unit franchising, with some targeted though business travel is only franchisors to meet and multi-unit expansion via incremental or beginning to commence – with network with prospective sequential franchising is typically most most cautious to travel due to development partners. We optimal – preserving owner operation and simply haven’t been able to optimizing any further growth in a controlled the disruptive risk of needing meet face-to-face, let alone to self-isolate (in the event of a have a gathering of manner. Very few organizations have the new outbreak) on return. Further thousands of individuals at an scale and margin to sustain sub franchising international development seems industry exhibition. in New Zealand. greatly curtailed until further travel New Zealand could be the “With regard to connecting the franchisor case study for what the future restrictions are lifted, and the holds, however. By locking country to New Zealand, we would often timeline for such lifting is incredibly down early and managing recommend direct franchising or a master uncertain – with many countries, the spread of the virus, the franchise for the whole country. However, including New Zealand, still early in country was able to host the recommendation needs to be based on the iconic Wellington street their vaccination programmes.” a thorough feasibility assessment which festival Cuba Dupa in March Thankfully, the New Zealand 2021, and in April, popular encompasses many other important business community has been Kiwi band Six60 played to related factors.” able to rely on the support of 50,000 fans at Eden park. FANZ to help navigate the toughest moments over the market opens up to international past year. This includes member travel once again, it’ll be important communication and networking, to have planned a foolproof entry webinars, landlord advocacy, strategy that includes location, as employment advocacy, regular well as the model of franchising that meetings, training, and a will be utilized. national conference. “When deciding on franchising form, incoming franchisors need to Planning an plan their entry structure carefully, entry strategy paying particular attention to While brands won’t be launching the size and dispersion of New in New Zealand just yet, once the Zealand’s population,” says Floyd.
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FITNESS FRANCHISING THE STATE OF FITNESS FRANCHISING IN 2021
The fitness industry certainly wasn’t immune from the COVID-19 pandemic, with many centers having to completely shut down around the world to stop the spread. But what does the heart-pulsing sector look like moving forward? From brick-and-mortar to tech-driven workouts, we speak with industry experts to get a feel for the pulse of this enduring market
REPORT BY KIERAN MCLOONE
GLOBALFRANCHISEMAGAZINE.COM 47 FITNESS FRANCHISING
An industry built on making gains
Fitness is one of the firmly established pillars of franchising, but it may be on the cusp of something even greater
s one of the key industries hit spread throughout their centers, almost one-to-one personal training programs, hard by the global pandemic all fitness franchisees were forced to large big-box centers – and everything A – alongside hospitality shutter their doors for prolonged periods; in between. and restaurants – you’d be some, unfortunately, for good. While each of these verticals forgiven for thinking that fitness will take But it’s far from the end for this encountered its own challenges over the a long time to return to its former glory. energetic sector. Rather than being down past year, there are some consistencies Some of the biggest international for the count, fitness is coming back that can be found across the entire brands fall under this umbrella, but none swinging in a big way. Operators have industry. A shift toward virtual workouts, of them were immune to the lockdowns, taken the time to reflect, and elements for instance, was seen in everything from restrictions, and bad press that COVID-19 such as virtual workouts and frictionless, boutique clubs like 9Round, to larger brought. And despite many operators digital avenues for clients to engage operations like Crunch Fitness. asserting that the virus didn’t even with brands have been brought to the And as we emerge from the worst of the forefront of many concepts’ strategies. pandemic, every kind of operation, big or small, needs to put a lot of emphasis on “It goes without Running the gamut making customers feel safe in returning One thing that industry insiders and to in-person workouts. saying that COVID gym-goers alike will appreciate is the “It goes without saying that COVID sheer variety on offer within the fitness has severely impacted the fitness and has severely space. Similar to the differences in food wellness industry; pretty much every and beverage, the fitness sector is made single one of our businesses had to shut impacted the up of small-scale boutique offerings, their doors when the pandemic hit one year ago,” says Sunil Rajasekar, president fitness and and CTO for digital fitness supplier, Mindbody. “Even as communities have wellness industry” begun to reopen, these businesses need to adapt to the new normal with features such as strict safety precautions and limited capacities.” You can hear more from Rajasekar about virtual workouts on page 54, as he unpacks why hybrid models are more likely than wholly online operations. For a more brick-and-mortar approach, make sure to check out the ‘gym of the future’ from Gold’s Gym on page 50. And for a comprehensive look at where fitness could be heading, check out our interview with Emre Ozgur, owner of consultancy EOC Fitness, on page 52.
48 GLOBAL FRANCHISE | ISSUE 6.2 MUST-KNOW STATISTICS ABOUT THE FITNESS FRANCHISE INDUSTRY
When asked what they missed most about a pre-COVID world, 59% of Americans said going to the gym – which was just behind seeing their loved ones (65%) (Source: IHRSA) AROUND 72% OF FITNESS OPERATORS NOW PROVIDE ON-DEMAND AND LIVESTREAM GROUP WORKOUTS, COMPARED WITH ONLY ONE-QUARTER IN 2019 (Source: ClubIntel)
More than half of people who keep fit do so with a hybrid of both in-person and virtual workouts (Source: Mindbody)
BETWEEN MID- INDIA(Source: World Economic Forum) MARCH AND had the largest global increase AUGUST 31, 2020, in fitness app downloads at THE U.S. GYM AND as well as the highest increase of daily active users with HEALTH CLUB 156% INDUSTRY more people using apps 84% every day LOST $13.9BN (Source: IHRSA)
GLOBALFRANCHISEMAGAZINE.COM 49 FITNESS FRANCHISING
Breaking down brick- and-mortar: the future of the in-person workout
RSG Group’s new ‘gym of the future’ could be a sign of things to come for fixed-location fitness franchises
uch has been said about KM: How has the strategy behind as well as our first company-owned the rise of virtual workouts, Gold’s Gym’s development changed location within Europe. especially in light of COVID-19 since RSG Group acquired the M shutdowns across the fitness brand in 2020? KM: Despite digital workouts franchising landscape. But this doesn’t JF: Since acquiring Gold’s Gym in 2020, being a focus of the past year, spell the end for in-person fitness. RSG Group has been focused on holistically Gold’s Gym has doubled-down Case in point: Gold’s Gym recently streamlining the business across the on brick-and-mortar. Why announced its flagship ‘gym of the internal support center and the company- is that? future’ set to open in Berlin, Germany owned gyms as well as ordering and JF: In today’s fitness market, neither – which is also where the brand’s new restructuring the franchise business. a full digital workout experience alone parent company, RSG Group GmbH, is Gold’s Gym approaches members now nor a traditional in-gym workout headquartered. with a hybrid of new designs, a wisely experience alone can fulfill all member To find out how this flagship location chosen equipment mix, and a tangible needs. RSG Group has long embraced will impact the brand’s brick-and-mortar feeling of our legacy while also providing digital fitness across our portfolio of franchise network moving forward, we franchisees with a clear vision of keeping brands, and we will continue doing sat down with Jörg Fockenberg, CDO for processes simple, automated, and so in ways that enhance the overall Gold’s Gym, and director of expansion at replicable. The new Gold’s Gym flagship in membership. But we recognize that a RSG Group. Berlin serves as our German market entry fully well-rounded fitness experience
50 GLOBAL FRANCHISE | ISSUE 6.2 “In today’s fitness market, neither a full digital workout experience alone nor a traditional in-gym workout experience alone can fulfill all member needs” will never be complete without an in- after the past year to feel like they are vision for the brand and shows how person community. coming home to a family. Gold’s Gym’s heritage and enormous So, while many fitness brands spent the Our ultimate mission as we progress legacy of fitness and bodybuilding can past year pivoting away from brick-and- into this new chapter for Gold’s Gym is be transformed into the modern spirit mortar gyms as a result of the pandemic, to ensure that both our company-owned of our times. RSG Group spent time and resources and franchised gyms are prioritizing the The Campus is intended to function designing the perfect gym for a post- customer’s needs above all else, whether as a symbol of a truly innovative fitness COVID world. It is only fitting that the it is a small-town gym with a limited experience, which can be translated iconic Gold’s Gym brand would be the one membership base or a multi-unit Gold’s from Berlin to the local needs of every to bring this vision to life, as Gold’s Gym Gym network with tens of thousands of country with the ongoing support of has been pioneering the fitness industry members to serve. the Gold’s Gym franchising team. since 1965. It’s all based on mutual trust, alignment, and consistently open communication KM: What kind of technological to your gym community. Give member enhancements have you shoutouts, engage with existing and introduced to boost the brick- potential members through the right and-mortar experience? marketing channels for your audience, and JF: Our challenge today is not only to express gratitude and excitement as more boost member and franchisee experiences and more members make their return. at the most basic levels, but we also need to find ways to meet and exceed a wide KM: How will this new corporate- range of expectations that go beyond the owned ‘gym of the future’ direct direct products and services a business the future of Gold Gym’s franchisee offers. We consider it an art form to offer portfolio? full services while constantly enhancing JF: Gold’s Gym Campus Berlin offers a those offerings for the modern context of tangible feeling of the ultimate topline rapidly changing technology standards. Therefore, we’ve put a 360-degree focus on improving the Gold’s Gym experience for both members and franchisees alike. For members, this includes a greater focus on digital engagement, as well as frictionless ways to join and manage memberships online. In studios, we also prioritize a wide variety of workout areas, and engaging group classes. For franchisees, this includes beneficial network partnerships, as well as site selection based on reliable data collected via artificial intelligence.
KM: What do you think franchisors will need to prioritize to bring customers back into brick-and- mortar fitness centers? JF: We are committed to making it clear that a membership is more than just a contract – it is a serious, flexible, and reliable partnership. We want our members who are returning to their gyms
GLOBALFRANCHISEMAGAZINE.COM 51 FITNESS FRANCHISING
Looking forward to the future of fitness As the dust settles on a global pandemic, what will this resilient sector begin to look like?
or Emre Ozgur, different way, in terms of bringing KM: Where do you see the owner of fitness fitness to homes. We knew it was industry going in five to business consultancy getting there, but it brought it faster. 10 years? F The industry was horrible at EO: There'll always be big-box, EOC Fitness, the online before the pandemic, and it boutique, home, online. But it's industry is about to become still is, but it's getting better much going to continue to evolve. When more exciting than ever. faster. But gyms are never going you think about big-box, a big trend The challenges of this past to go away. People love community is low-cost gyms. But how do they year have really put some brands and going somewhere inspiring. stay low-cost? You pack a ton of to the test, but Ozgur, who has If you're in the industry, you people into the gym and spend as hands-on experience at huge better pivot and understand little as possible on operations. Do names like 24 Hour Fitness and that today's fitness will not look we think we can continue to UFC Gym, believes that the like tomorrow's. I am a gym guy, do that? best is yet to come. and I always will be. But traditional You're going to have to service gyms aren't going to look the your clients better, and put in more KM: What do you think some same five years from now. If you work for your service standards. of the silver linings of the think that, you'll be stuck in a Think of online: anybody and pandemic have been? Blockbuster and Kodak world. everybody created an online EO: COVID-19 fast-forwarded the Make sure that you evolve with platform a year ago because of industry. It forced people to think a what's happening. the pandemic. But how bored did
52 GLOBAL FRANCHISE | ISSUE 6.2 “I compare the EMRE OZGUR’S FIVE ESSENTIAL SELF- fitness industry REFLECTIONS THAT FITNESS FRANCHISEES right now with NEED TO MAKE what happened 1) Do you have a passion for fitness? 4) Get with the times “There will be tough times, and your “Marketing is evolving faster than with Bitcoin” passion will get you through those times. ever. You need to either learn digital If not, then you're going to struggle.” marketing, or hire somebody who's great at it to help you with it.” people get? They stopped doing 2) Do you love interacting with people? 5) Find a brand you believe in it. There are platforms out there “This is a service job. You will service with 500,000 members, but there's customers, and more importantly, “There's so many franchise five or 10 people on their online service your team members.” options out there, and you don't necessarily need to go with the workouts. 3) Do you like sales? most popular, the cheapest, or The future is still yet to be “Not the high-pressure sales, but the most expensive. Go with a seen. There are going to be hybrid motivating people to see the value brand that really speaks to you. At options and better home options. in investing their hard-earned money the end of the day, the uniform There are going to be boutiques into improving their fitness and lives. you're wearing is one you'll be that come out, and in the near If you don't like hearing 'no', then find bleeding, sweating, and tearing in. future, somebody's going to come something else.” You need to believe in it.” out with something and we’ll all say, 'why didn't I think of that?’ have been 10 to 15 per cent, for doing some kind of fitness routine. KM: Why do you think fitness argument's sake. That's now up to I compare the fitness industry remains an attractive 30 or 35 per cent in some places. right now with what happened industry to enter? I was a first-generation gym- with Bitcoin. If I could go back and EO: The fitness industry is fairly goer. My kids see me going to invest in Bitcoin years ago, I'd put new. I became a trainer in 1998 and the gym, so they're going to be all of my money into it. I think it's it was a natural transition for me. second-generation. They know that the same with fitness. Although My network of family and friends part of life is exercise and eating it's changing and evolving, the weren't traditional gym-goers. The right. That 30 per cent is going to fitness industry will always be percentage of the population that continue to grow, where eventually, here. It's just going to look a went to the gym at that time may the majority of the population is little different.
GLOBALFRANCHISEMAGAZINE.COM 53 FITNESS FRANCHISING
Is virtual fitness franchising here to stay? At-home fitness and streaming became huge during the height of the pandemic, but do they have the staying power to outweigh traditional models?
KM: In industries such as F&B, we’re per cent of consumers across the U.S. feel seeing omnichannel become the that wellness is more important than ever way forward for brick-and-mortar and nearly 60 per cent are more focused on brands. Will we see the same in the health/wellness since the pandemic started. fitness industry? Mindbody also leveraged its Wellness SR: As regions begin to open, we see a Index to further understand consumer decrease in virtual bookings. Although, behavior and develop trend predictions for it is important to note that we know our the year ahead. These include: consumers have adopted hybrid workout Touchless spa services and their benefits habits (in-person and virtual), so even will become more discovered as 31 per cent though cities will eventually completely of Americans shared that they are interested reopen, virtual is here to stay and the floor in no-touch services such as cryotherapy or of virtual class bookings has increased by float spas. more than double. Snackable workouts will continue to This hybrid approach mirrors what hit the spot for many! Nearly four in 10 retail is seeing in omnichannel. The tens Americans say their workouts are a half hour of thousands of wellness businesses or less. These snackable workouts are giving that operate on our platform were forced Americans a chance to get a workout in when to immediately pivot and reach their they might not have time otherwise. f you’ve kept abreast of the consumers in a new way (virtual). Video- People are trying new things and becoming fitness industry across the on-demand and live stream workouts more comfortable with attending in-person past year, then you’ll know how I will be used as complements to in-person classes, when they may not have been virtual workouts redefined the workouts post-vaccinations. Hybrid open to trying it pre-pandemic. 56 per cent way that we looked at getting our fitness workouts are poised to grow from 53 to 65 of those that have gym intimidation (aka fix during the pandemic. More individuals per cent post vaccination. gymtimidation), say they want to get in than ever before were bringing push-ups shape before they go to the gym – but that and Pilates to their lounge, when the four KM: What has Mindbody identified virtual fitness has helped break down walls of a brick-and-mortar gym were as the main fitness trends of those barriers. inaccessible due to worldwide lockdowns. 2021/2022? For organizations such as fitness tech SR: In our recent platform Mindbody, this has meant a Wellness Index remarkable increase in interest for virtual survey, 75 sessions. To get a clear picture on how impactful the rise of at-home fitness could be moving forward, we spoke with Mindbody president and chief technology officer, Sunil Rajasekar.
KM: Will the rise of home workouts eventually eclipse the traditional gym model? SR: We do not believe in-person workouts are going anywhere. While we believe it is essential for businesses to adapt in order to cater to new consumer behaviors, we believe virtual will serve as a complement to in-person workouts, not a replacement. The 2021 Mindbody Wellness Index revealed that more than half (53 per cent) of people who exercise plan to do both in-person classes and virtual.
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FEATURE
WHERE ARE THEY NOW: BLOCKBUSTER In the second instalment of our retrospective series, we take a look at the story behind the video rental industry’s pioneering giant
WORDS BY KIERAN MCLOONE
56 GLOBAL FRANCHISE | ISSUE 6.2 f you were an avid movie- goer during the late 1990s and early 2000s, I then that bold, blue and yellow logo probably scratches a nostalgic itch that few other brands could even hope to equal. At its height, Blockbuster appeared to outsiders as a triumphant staple of the international retail landscape. It peaked around 2004 with 9,094 stores, employing approximately 84,300 people, and for film fans the brand couldn’t be beat when it came to getting their hands on the latest releases. But behind the scenes, insiders told a different story. Everybody David Kahn (far left) at a Blockbuster grand opening in 1998 now knows about the infamous $50m Netflix deal that was turned down by then-CEO John Antioco in 2000, but Blockbuster’s problems can be traced back even further. “I’ve come to believe the really great companies create the future, “I’ve come to believe the really great rather than having it defined by other people,” says Alan Payne, one companies create the future, rather of Blockbuster’s longest-running franchise partners, and author of than having it defined by other people” the book Built to Fail: The Inside Story of Blockbuster’s Inevitable Bust. and-pop operators getting involved; everybody did indeed win. Stores “Had Blockbuster done it right, I it was driven by corporations on the were generating upward of $1m in think there'd still be some stores franchising side of things.” annual sales, and the $500,000 open today.” Nowadays, those not in the know that it cost to open a Blockbuster may not have even been aware location was typically repaid in The beginning of that Blockbuster was at one time less than two years. If a franchise the end a considerable franchisor. That’s group decided that it didn’t want The Blockbuster that we know because the strategy employed to expand any further, and the was created in 1986, when serial by Wayne Huizenga during his market was there for it, then Wayne entrepreneur Wayne Huizenga tenure of 1986 to 1994 was to utilize Huizenga would simply buy the paid $18.5m for 60 per cent of the franchising for rapid expansion, territory – often through shares in company. At this time, the video and then purchase the units once the company – and the gravy train store market was generating over they were fully formed. would continue down its seemingly $3bn a year in sales, and existing “Franchisees were never about endless tracks. legal battles between operators more than one-fourth of all the “It was all about the cash flow and big studios had largely stores. The only reason they did it being there. I know that Wayne was settled down. was to develop markets they didn't frustrated with a group that had The industry seemed like a want to mess with like Alaska, where built out Tampa, Florida, which had surefire way for business owners we were,” says Payne. “In the early an exclusive territory,” says Kahn. to make money, and Blockbuster days, they used it as a tool to grow “They'd built 20 stores and didn't soon found itself with countless faster than they could organically. want to build any more, but there entrepreneurs looking to open their All of the large franchise groups were opportunities to continue own stores. that were built in those early years? growing the brand. “Blockbuster took off, and people Blockbuster bought them all back. It “That drove Wayne crazy. He were calling them and begging to was almost like an orchestrated deal was a builder. Plus, you make more get one of these stores,” says David where they would give a big territory money if you own the stores. You Kahn, a Blockbuster franchisee to somebody who would develop it use the franchise model to grow who first joined the company as a over three to four years, and then the concept quickly, but you're only district manager in 1988. “A lot of Blockbuster would buy it back. getting six to eight per cent royalties franchisees were known as ‘friends Everybody won.” off of it – you can get 30 per cent or of Wayne’, and you didn’t see mom- And in those exciting early years, more return if you own the stores.”
GLOBALFRANCHISEMAGAZINE.COM 57 FEATURE
“A lot of franchisees were known as ‘friends of Wayne’, and you didn’t see mom-and-pop operators getting involved”
Blockbuster stores in Meridian, Mississippi, and Tuscaloosa, Alabama (below) for opening as many locations as possible – and as quick as possible – that many sources state paved the way for the brand’s inevitable decline. Franchisors nowadays recognize that growth is preferable, but not at the expense of strategy and sustainability. “In its race to open stores faster than anyone else, Blockbuster made hundreds of real estate mistakes, accepting inferior locations in its haste to open 3,000 stores in six years,” wrote Alan Payne in Built to Fail. “These poorly located stores were underperforming, but more importantly, were extremely vulnerable to the inevitable competition to come.” Competition initially came in the form of Hollywood Video, which went public in 1993 and grew to 1,600 locations just six years later. It wasn’t quite the same numbers that Blockbuster boasted, but its sheer presence highlighted a fundamental flaw in the latter’s model: Blockbuster simply wasn’t prepared for brick- and-mortar rivals. “If a Blockbuster is on one corner and a Hollywood Video goes across the street, it'd take three-quarters of revenue from the Blockbuster,” says Payne. “You'd think that would raise some red flags, but over three years, Blockbuster did nothing about it. The cracks begin didn't know how to make a deal.” They allowed it to happen all over to show 1997 was also the year that the country.” Some say that the departure of Netflix was founded, and many Huizenga in 1994 was the beginning who analyze the decline of the Blockbuster’s of the end for Blockbuster, as it video rental giant pin its downfall final days lost its driving force and aggressive on this shift to streaming. The rest of the story isn’t pretty, development backbone. After However, Netflix didn’t stream but to outsiders, Blockbuster still all, between 1994 and 1997 the its first film until a decade later appeared to be on top. It opened brand went through three CEOs, in 2007, whereas Blockbuster its 8,000th store in 2004, and one eventually settling on John Antioco was on the downturn many years year later, the brand eliminated who joined the video rental beforehand. The number of units the pesky late fees that customers powerhouse from Taco Bell. it operated continued to grow, but despised so much – and which “Wayne Huizenga was a builder it posted a net loss for every year rivals highlighted as a source and developer and acquirer, but two between 1996 and 2010. of competition. whereas John was an operator,” This net loss can be attributed Rather than making Blockbuster says Kahn. “He didn't have the same to a plethora of factors, but it as popular as it was in the 1990s, mentality about acquisition. He was in fact Huizenga’s passion however, the removal of late fees
58 GLOBAL FRANCHISE | ISSUE 6.2 was a one-two punch that the exactly help the brand simply couldn’t handle by remaining franchise this point. Its stock price fell by locations that 50 per cent at the announcement were in operation. of the news, and customers no These included longer had much incentive to the 26 owned bring back their rentals (DVDs, by by Alan Payne’s this point) on time. organization, Border “When they eliminated late Entertainment. fees, it was like going to a rent-a- “Our stores were car on a business trip: you'd rent Blockbuster stores it for a couple of days but there's in name only. Our no late fees, so you can then just markets were drive it around,” says Kahn. “That exclusive to us, we puts stress on the inventory. didn't operate in You'd come in wanting to watch Titanic, but the guy over here 'mixed markets', and wasn't bringing the movie back.” had no corporate A decade later, and Blockbuster stores nearby,” closed its last corporate-owned says Payne. “For store in 2014. By this point, the the most part, Closing down sale at one of Alan Payne’s El Paso locations in 2016 brand name was synonymous Blockbuster in our with missed opportunities more markets were what than innovation, which didn’t we made it.”
LESSONS FOR FRANCHISORS FROM BLOCKBUSTER’S STORY ● Growth, but not at any cost. The early days of Wayne Huizenga’s leadership were a paradise for Blockbuster’s higher-ups, but there was little thought given to the future. A brand can be on top, but it takes forward-planning to stay there Closing of Alan Payne’s Soldotna, Alaska store in 2018 – one of the final Blockbuster franchise locations ● Stick to the ‘why’ of your brand. “Instead of capitalizing on the strengths of a Blockbuster store, they tried to be Netflix,” says Alan Payne on the final days of the brand. Focusing on your strengths “In its race to open stores will always win over chasing the dragon
faster than anyone else, ● Keep up with tech trends. Blockbuster never significantly upgraded its back-office systems in its Blockbuster made hundreds entire 29-year history. If it had done so, it’s possible there would be some form of the organization of real estate mistakes” around today
GLOBALFRANCHISEMAGAZINE.COM 59 BEHIND THE BRAND: PARTNER CONTENT
COVER STORY
A landmark AT A GLANCE SLIM CHICKENS
Year established: 2003 Number of total units: year for Slim 125+ Contact: Jackie Lobdell, jackie@ slimchickens.com; (630) 300-4798 Chickens slimchickensfranchise.com toward its online ordering system and encouraging customers to take advantage of drive-thru and Halfway through 2021, Slim Chickens is egg-ceeding its curbside pickup options, Slim franchising goals with no signs of slowing down Chickens ended 2020 with 150 new signed agreements in the works, 15 restaurant openings and just under espite the difficulties the THE YEAR BEHIND 14 per cent positive comp store sales restaurant sector has faced in Most restaurant brands found in addition to its incredible growth D the past year, Slim Chickens, themselves struggling through the across the country. a dominant brand in the fast- 2020 pandemic, with many closing “We kicked things off in January casual chicken industry, has seen more their doors indefinitely to combat stronger than ever and with more growth than ever. the drastic drop off in revenue. Slim momentum behind us than any The “better chicken” brand saw more Chickens, however, took a different other brand in the segment,” said than 35 per cent systemwide revenue approach, quickly pivoting and Slim Chicken’s vice president of growth and grew its franchise system by adapting to the circumstances. franchise development, Jackie a whopping 30 per cent in 2020, just eight The consumer environment had Lobdell. “Of course, things years since it began franchising. changed drastically, practically changed in March, but we were Chicken restaurants and menu items are overnight, but rather than fall to able to quickly pivot and support gaining incredible traction as the chicken the wayside and “wait out” a franchisees, and within four wars wage on and consumer demand lockdown that ended up lasting weeks our year-over-year sales grows at astonishing rates, but despite the longer than anyone imagined, the were up systemwide. This competitive arena, Slim Chickens always 2021 Franchise Times Zor Award- showed prospects that Slim seems to edge out the competition with winner shifted its strategy. Chickens was the right choice for its 17 house-made dipping sauces and After doubling down on marketing their portfolio long-term.” its hand-breaded, buttermilk marinated, campaigns, increasing sanitation cooked to order chicken tenders. efforts, and making a big push THE YEAR AHEAD At the end of last year, Lobdell predicted that 2021 would be a landmark year of growth for the brand, and with 171 deals inked since January and more than 55 locations slated to open this year, her prediction appears to have been correct. Slim Chickens set a goal of opening 600 locations in the next 10 years, and with more than 600 units in development, the brand is well on its way to not just meeting that goal, but soaring right past it.
THE FANS Slim Chickens has a few standout factors contributing to its explosive growth, and one of the main contributors to that growth is the dedication of the
60 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxSlim Chickens GLOBALFRANCHISEMAGAZINE.COM 61 GLOBALFRANCHISEMAGAZINE.COM
Mike Sartwell is another Sartwell Mike we when had big goals “We THE SUPPORT and SmithBoth Sartwell commented on the immense amount of support Slims provides the throughout its franchisees that saying with Sartwell process, ahead of is even the franchisor historic brands. more larger, they originally signed a multi-unit a multi-unit signed originally they with Slims and aim to have deal their 30 locations open across and Coloradoterritories in Utah “Our customers are as dedicated as ever, which put which as ever, as dedicated are customers “Our be playingto need don’t we where position us in a look we as the industry of the rest with catch-up of COVID-19” era the beyond 2023. by about his raves who franchisee as a Slim Chickens experience in restaurants With two franchisee. – one and Montana Dakota North revenue for set a record which of – Sartwellweek during its opening of his high expectations says have with the brand franchising been surpassed. already andwith Slim Chickens, signed on accomplished them,” already we’ve us the just gives “It says. Sartwell that I goals to set more opportunity with be able to hit we’ll know this brand.”
Will Smith, one of Slim Chickens’ Will Smith, one of Slim Chickens’ “From the food, to the training, to to the training, the food, “From LOVE Smith and his company This group goes wild for the wild for goes This group trust not earned their “We quick-service restaurants. quick-service that the brand says franchisees, out of the all of the others “blew looking towas he when water” back in 2018. his portfolio expand THE FRANCHISEES Alongside the enthusiastic fans dedicated Slim Chickens’ are as impassioned are who franchisees as of the brand love in their areSlimthusiasts. Franchisees to the brand’s often attracted vibe, and the cool food, craveable dose of Southern hospitality extra in prevalent always that isn’t quick- 30 other evaluated He he before service franchises signed with Slims. was team, it truly the management Smith scenario,” ‘no competition’ a the best obviously was “Slims said. portfolio, our diversifying option for be I couldn’t later years and three up decision to pony with my happier firstwe when multiple territories for is up to AUV The brand’s signed on. that an investment – it’s now $3.4m* off.” continues to pay opened have Group Restaurant locations brick-and-mortar five truck sinceand one mobile food brand’s loyal fanbase, also known also fanbase, loyal brand’s as “Slimthusists”. as “Slimthusists”. and sauces signature 17 brand’s location a new whenever rejoices opens up in local communities. loyalty Slims has earned their food, its high-quality through – in menu broader-than-usual chicken addition to the coveted and sandwiches, the Slimtenders also includes items menu Chickens chickenwaffles, and such as chicken Instagram- salads and wings, fresh and the desserts – jarred worthy the two between trust cultivated year. in the past groups gestures made empty we because we could tell at it, but because they said Lobdell about the earnest,” were “Our adaptations. 2020 company’s as ever, as dedicated are customers we where put us in a position which catch-up need to be playing don’t we as of the industry with the rest of COVID-19.” the era look beyond COVER STORY COVER BEHIND THE BRAND: PARTNER CONTENT
expand their portfolios with an nationally and across the pond. “We kicked things off in additional restaurant concept. Growth continues to be a priority, January stronger than ever especially in markets throughout THE FOOD Florida, Pennsylvania, Michigan, and with more momentum Above all, Lobdell says franchisees Minnesota and Arizona. are drawn in by the high-quality The brand is also open to food, saying: “If we didn’t have great- behind us than any other international growth, as its flagship tasting, fresh and flavorful food, we locations in London and Kuwait brand in the segment” wouldn’t be where we are today.” continue to see impressive sales Slim Chickens is a standout growth. The franchisor has plans to “When we visited the corporate concept among other fast-casual offices we connected with everyone, chicken brands, as most brands expand in both the United Kingdom including the founders, which was stick to their “bread and butter” – or, and the Middle East, and is open to incredible. We learned about the in this case, their chicken and fries. adding other countries to its roster. whole process with Slims, from Slim Chickens branches beyond Slim Chickens has a variety of purchasing, to training, marketing, that by offering additional options flexible footprint options, including construction – and now that we’re on with Southern flair, like its chicken dine-in and drive-thru options, the other side of it, everything they and waffles, mac and cheese, and a as well as formats that work in said rings true. They sent out a team variety of sweet teas freshly brewed non-traditional venues such as to support us on our opening week.” and available by the gallon. restaurants at universities, airports, That team ensured everyone was More impressive than having stadiums and military bases – trained and ready to go a week before a more expansive menu is that franchisees in Colorado and Ohio opening, and when Sartwell officially everything on the menu is just as went so far as to open a first-of-its- opened his North Dakota location, flavorful and high quality as Slims’ kind Slim Chickens food truck. which had the biggest opening famous tenders. Fans of the brand Slim Chickens is looking for week the franchisor had ever know they can head over to Slims, experienced, Slims committed even order something different each time, experienced multi-unit franchisees more people for extra time to help and whether it’s the wings, tenders, who can expect extensive support the team get through it. sandwiches or waffles, they won’t from the moment they sign on – This hands-on franchisor be disappointed – especially not if the brand is renowned for the philosophy, in addition to smooth- those items are topped with one of support and the everlasting running systems and processes the house sauces. relationships built with franchisees, Slims has in place to support and is ready to expand in a franchisees throughout their JOIN THE TEAM territory near you. journey, often sets Slim Chickens Despite the fervent growth of the
apart when experienced multi-unit system’s existing franchisees, Slim *AUV for group #1 franchised restaurants franchisors are looking to Chickens has plenty of room to grow in the 2021 FDD
62 GLOBAL FRANCHISE | ISSUE 6.2 Future proof Industry – you can’t get a haircut online!
Did you know that most Just Cuts™ Franchise Owners are not hairdressers? And the average Owner goes on to own multiple salons.
If you’re looking for a proven business model with increased flexibility and work-life balance, Just Cuts™ is just the right fi t for you.
Find our how you can join the largest hairdressing company in the Southern Hemisphere today. [email protected] | franchising.justcuts.com |AUS & NZ 1800 334 498 | UK 07577 700 397 BEHIND THE BRAND: PARTNER CONTENT
Empowering AT A GLANCE KARE PLUS
Year established: 1989 Number of total units: healthcare 80+ Locations of units: Globally Investment range: Price on request Minimum required capital: professionals Price on request Contact: 01952 783 338 around the franchising.kareplus.co.uk he would be able to partner with like-minded individuals who shared his passion for quality care. Under world this ambition, he led the business to further expansion, developing a brand which was locally known but to be globally grown. Kare Plus: A U.K. healthcare model built for durability, Since 2010, Kare Plus has grown from three businesses to over 70 adaptability, and scalability, globally across the U.K. and since 2016, it underwent international expansion Originally founded as a nursing with master franchises opening in provider to the NHS in 1989, Kare Ireland and United Arab Emirates. Plus was built to be different – it With a franchise model that is was built to be future proof. Whilst uniquely placed to take advantage of maintaining and developing the changing healthcare landscape, the brand’s fundamental values it is no wonder the opportunity is and foundations, Kare Plus has so attractive. With over 30 years consistently evolved alongside of operating in the industry, Kare the increased demand and Plus is one of the most experienced opportunities the healthcare sector and diverse healthcare franchises presents, offering its business in the U.K. and is truly one that owners multiple income sources has refused to sit still. Instead of and access to new opportunities. running the risk of plateauing, it The true evolution of Kare Plus consistently diversifies. really came into effect back in 2010 when the brand was purchased by SYNERGY FOR SUCCESS the then franchisee of Kare Plus Kare Plus now seeks to partner with West Midlands, Steve Welsh. Joining entrepreneurs and strong business the network at the start of the leaders to operate Australian master last recession, Steve grasped the franchises and multi-unit territories opportunity with both hands, and across all six states. The adaptable ollowing huge success with the help of our experienced and versatile model provides in the U.K., Ireland clinical, operational, and regulatory durability as well as scalability F and the U.A.E., Kare support team, rebranded the model with both the supply of healthcare Plus, a leading multi- and modified the operations and staffing solutions and delivering service healthcare workforce support infrastructure, built from a care in people’s own homes. solutions provider, is now seeking franchisee’s perspective. Unlike most franchised models in entrepreneurs in Australia who the healthcare industry, Kare Plus understand the exponential THE START OF Franchising doesn’t just provide prospect of operating within the SOMETHING SPECIAL the opportunity to operate as a healthcare industry, for master Knowing how fundamental support healthcare staffing provider, nor franchise or multi-unit area is to business success, Steve knew does it solely offer itself as a home development opportunities. that by setting the right foundations, care provider – it offers both, thus
64 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxKare Plus
GLOBALFRANCHISEMAGAZINE.COM 65 GLOBALFRANCHISEMAGAZINE.COM “Everyone’s needs are unique and needs are “Everyone’s Yvonne Tomlinson, CEO for Kare CEO for Tomlinson, Yvonne our customers. our that understands Plus with that Kare something different wants everyone and support they the care from the improving continually By receive. and enhancement of care accessibility wholly is able to Plus Kare provision, to meet thesupport its franchisees those in from wants needs and ongoing local community.” their Plus Franchising, said: “The Kare Plus“The Kare said: Franchising, Plus at the owners model puts franchise within needs of healthcare forefront in thisworking After local communities. years many for sector rewarding hugely important it is to be able how I know and provisions of care variety a to offer of specialisms to meet variety a deliver of requirements the exact FOUNDATIONS OF TRUE OF TRUE FOUNDATIONS BUSINESS SUPPORT a under to joining the brand Prior 2018, license in May franchisor master Robinson, Paul Kirk entrepreneurs “Kare Plus has consistently consistently has Plus “Kare thealongside evolved and demand increased healthcare the opportunities its offering presents, sector multiple business owners and access income sources opportunities” new to
No one could have comprehended one could have No has of COVID-19 The severity and waiting to speak to peoplewaiting and OPTIMUM TIME FOR OPTIMUM TIME FOR GROWTH to meet demand, Consequently, seeking additional is now Plus Kare to join its partners franchise ready and are network dynamic a positive to make want who local community, to their difference and globally. nationally industry and challenges of and challenges industry the economic climate”. INCREASING RAPIDLY DEMAND of functionality This platform testament in future prove would Plus the Kare offering years, in resilience greater network and economictimes of uncertainty we such challenges challenge; would all be facing without all be facing would warning. prediction or the be facing would we that of a global pandemic inchallenge seemed to come as COVID-19 2020; some for as a tsunami and quickly had an almostwill have sectors, impact. One that devastating similar from. to recover be hard may industries to a halt; many brought is sector the healthcare however, and even one that has had to endure Whilst the health and safety expand. are and customers network of our do, therewe what of at the forefront inis a continuation of the increases services. our demand for
Taking over this prestigious over Taking from Plus of Kare known “I have “Reflecting on the advantages network supporting our “By To further cement the foundations further To appointed Steve the brand, for to become chief Tomlinson Yvonne joinedYvonne officer. executive ADVANTAGEOUS ADVANTAGEOUS INVESTMENT giving the businesses the pedigree the businesses giving and evolve. build, grow to establish, was and in 2018 Plus Kare company appointed to CEO of the 2020. in January driven has already Yvonne helm, the brand for results unparalleled development and aided the further its advancing of the organization, of GP services into the provision pharmacists, workers, locums, social and dental nurses. before angle, even a competitive for passion Its joining the brand. been has always and growth care was me and really for draw a great Plus. me to Kare attracted what not daily, This passion is evident team experienced our from only of support professionals but alsoof support professionals on a global scale,” network, with our said Yvonne. with of working an organization not the sector, within experienced a smart and franchise is a care only it is a chance investment, lucrative to open a business that is not only but also rewarding, personally Being able to provide lives. improves solutionsof workforce variety a wide choice for more enables not only but also multiple customers our offices. Kare our for streams revenue range a broad has developed Plus the high achieve which of services and support our of care standards These services expect. customers year, on year and expand grow can owners franchise ensuring our capitalize on demand. multiple high-quality to deliver model ensures services, our of income, new a diversity opportunities, and most importantly This investment. proof a future also means that where other where also means that with a up you set will franchisors will business, we you support to local market, your and adapt to grow of the demands the ever-changing BEHIND THE BRAND: PARTNER CONTENT
“The severity of COVID-19 has brought many industries to a halt; however, the healthcare sector is one that has had to endure and even expand” seen this reflected, even during the • Highest quality of care above pandemic: “We have been able to all else award five franchisees during the COVID-19 pandemic which truly Our tried and tested service reflects the strength of the sector endeavours to provide safe and and that of the opportunity. This, responsive outcomes using paired with this support, means I established processes to minimise can confidently say I would have no the potential to make mistakes, hesitation in recommending Kare therefore safeguarding the end user. Plus to any potential investor.” Our workforce solutions, rigorous In addition to the five sites training, strong infrastructure, Hayes, and Michael Hayes were looking for a new awarded in Ireland, the U.K. has bespoke technology, IT systems and challenge. After discovering Kare Plus online they seen further expansion through the experienced leadership means that knew it was one for further investigation. Coming awarding of 11 new franchise sites. quality control is maximized and from a non-healthcare background they saw the So, in summary, what really results in the highest quality of care benefits of working with a master franchisor and makes Kare Plus unique in the U.K., for our customers. intrigue led them to discover more. Europe and beyond? We have invested significantly “I was looking for an opportunity to help in our infrastructure, in-house people and was motivated to take on an exciting • High quality control, technology, and workforce solutions and rewarding new venture. When I initially management, and regulation serving all segments of market at looked at the business model, it fitted in with my • Workforce solutions within its premium level. Providing highest sentiment, and looking at Kare Plus it was very own network that are trained levels of quality control and clear to see the company’s success throughout and properly qualified and empowering and providing our own the U.K,” Kirk said. vetted centrally staff, carers and specialist nurses. “On our first visit to the head office in the U.K., • Well-invested infrastructure And as the founder was originally we were really impressed with the organization’s and platform for long-term a franchisee of the brand, we structure and the support staff within. By our vision of expansion of its all understand the franchising second visit, the enthusiasm shown by the team unique model into Europe and evolution and use our experience as and the integrity shown by Yvonne Tomlinson internationally, where demand is a benchmark. We have developed made it an easy decision to take on a Kare Plus increasing rapidly a world-class support system and master franchise. • Continuous innovation and operate and monitor with our own “One of the core benefits and strengths of a technology which is such a bespoke systems and software. We franchise is the support you receive,” Kirk said. necessary requirement for have a strong support system that “From day one the support I received was second the sector attracts high quality franchisees to none. I have thoroughly enjoyed working so • Fresh and innovative approach and allows them to thrive with our closely with key members of the support team, to marketing guidance. and it feels as if they have now become part of the Kare Plus Ireland team!”
STRENGTH IN ECONOMIC UNCERTAINTY As an ever growing healthcare franchise network, the services that Kare Plus offers are very much in demand; the diversification of care services means the need for greater care and support services continue to rapidly increase. Whilst the severity of COVID-19 has brought many industries to a halt, the healthcare sector is one that has had to endure, evolve, and adapt to the demand. The demand for healthcare providers is greater than ever and Kirk confirmed that he has
66 GLOBAL FRANCHISE | ISSUE 6.2
BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Chem-Dry
AT A GLANCE CHEM-DRY
Established: 1977 A deep clean Number of franchised outlets: 3,500 Locations of units: 50+ countries worldwide Investment range: Franchise fee: $50,000 to $1m or more, depending on territory that’s also and population Startup cash: $200,000 to $800,000, depending on market size and economic conditions Minimum net worth: $500,000 to $2m, depending on the market eco-friendly Contact: [email protected] / +1 616 560 8686 chemdryinternational.com Chem-Dry is committed to eco-friendly cleaning chemdry.com for carpets and beyond
hem-Dry started out hours instead of one to two days. “From its start in 1977 with the goal Rather than harsh chemicals, the of becoming a drier, brand’s core cleaner, The Natural, over 40 years C cleaner, and greener is one of the purest carpet cleaning ago, Chem-Dry alternative to traditional carpet solutions available. It is non-toxic and cleaning. In the 44 years since, contains no harsh soaps, detergents, has grown into Chem-Dry has grown into the world’s phosphates, or fragrances. largest carpet cleaning franchise with Chem-Dry has a diverse range the world’s over 3,500 locations worldwide. The of over 50 environmentally brand’s master franchisees have been sustainable products for largest carpet establishing Chem-Dry in the global everything from tile and grout marketplace since 1987. to pet urine treatment. cleaning brand”
DEEP CLEAN THE MORE THAN JUST CARPET we offer our franchisees to help NATURAL WAY Chem-Dry is committed to offering them stay on the leading edge of One of the reasons consumers franchise owners a suite of services the industry – has enabled us to be choose Chem-Dry over other that provide flexibility and are fortunate to have that designation services is that it offers a healthier, easily scalable. The brand does of being number one for the past safer carpet cleaning experience. this by continually adapting to the 30 years,” Dan says, adding that The brand is the only carpet changing landscape and offering development of new products and cleaning company that uses a a variety of cleaning methods for processes continues today. unique Hot Carbonating Extraction every surface in the home and cleaning process that utilizes the office. With carpet cleaning as the PROVEN CONCEPT AND natural power of carbonation to brand’s core service, franchise BUSINESS MODEL release dirt and grime from deep owners also offer upholstery From its start over 40 years ago, within carpets. cleaning, pet urine and odor Chem-Dry has grown into the world’s Compared to traditional steam removal, tile and grout cleaning, largest carpet cleaning brand, with cleaning, the Chem-Dry process uses wood floor cleaning, and more. a presence in over 50 countries. around 80 per cent less water. This Chem-Dry is a company that’s With this many franchise locations means carpets dry in one to two always moving forward, with open for business, Chem-Dry has an aggressive research and perfected the training and support development team that’s constantly techniques that new franchisees looking for ways to improve their need to become successful, thriving products and equipment. Chem- Chem-Dry owners. Dry CEO Dan Tarantin attributes From one-on-one sessions to that on-going research and frequent phone calls with coaches development as the reason Chem- and franchise colleagues, franchise Dry has been consistently ranked owners become a part of a network the top carpet cleaning franchise of knowledgeable and caring for the past 30 years. business owners. With an average “We have a history of innovation, of 17 years in the system, our and that innovation – continually franchisees are the experts when improving the production, the it comes to what puts Chem-Dry at processes and the services that the top.
68 GLOBAL FRANCHISE | ISSUE 6.2 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Just Cuts
AT A GLANCE JUST CUTS The Australian Established: 1990 Number of franchised outlets: 230 Minimum investment: $50,000 - $280,000 Contact: Donna Topham, bdmuk@ justcuts.co.uk, (+44) 07803 210122 salon franchising.justcuts.com “COVID remains delivering a challenge for all retail franchises, success but our support was phenomenal”
regardless of what’s going on in the Just Cuts is providing its U.K. franchise owners world, hair never stops growing, and neither does Just Cuts. with unparalleled levels of support Just Cuts opened two new U.K. salons at Sunderland and inning the Global After owning and operating his Middlesbrough during the height Franchise Award for own salon in London, Denis returned of COVID, and successfully assisted W Best Lifestyle Franchise to Australia and used everything owners with navigating the impact shows 2021 is shaping he learned to begin pioneering the of COVID on their businesses. up to be the biggest year yet for Just Just Cuts brand 30 years ago in Just Cuts provided PPE free of Cuts in the United Kingdom. Sydney, which now sits at over 225 charge for clients and created Named the U.K.’s ‘Best New salons spread across Australia, New safety videos and clear signage. Franchise’ in 2020 by the Approved Zealand and the United Kingdom. Just Cuts Middlesbrough owner Franchise Association, Just Cuts has So, what are some common Adele Varsamos believes the expanded rapidly to nine successful reasons owners all over the world support from the Just Cuts Academy salons and counting in less than continue to choose Just Cuts today? and her fellow owners was crucial three years, going back to where it during the height of COVID. all began for the brand’s founder, JUST WHAT YOU’RE “COVID remains a challenge Denis McFadden. LOOKING FOR for all retail franchises, but our The Just Cuts business model has support was phenomenal,” said been designed and refined over 30 Adele. “Regular meetings with years of small business success with other owners gave me both operational, ordering and marketing encouragement and ideas for systems all built in, and now my salon. The collaboration within completely online. the Just Cuts owner community Just Cuts is a true digital brand during COVID is proof of our with a range of support available strong culture.” online, including an e-learning platform, print marketing ordering JUST RIGHT FOR YOU system, retail reward program and Just Cuts is a proven small point of service tools. business system where you This proven model is why work life don’t need to be a hairdresser balance continues to set Just Cuts to succeed. salons a cut above the rest. In fact, The Just Cuts Academy provides the average Just Cuts owner spends all the support you need to recruit less than 30 hours a week working team leaders and stylists to service on their business. your clients – all you need is a The model also makes it easy to passion for people and a desire to manage businesses across multiple build your business. locations. More than 50 per cent of The new, compact Kiosk Just Cuts owners are multi-salon. salons require a lower initial investment to get up and running, JUST WHAT YOU NEED providing the perfect choice COVID was a challenge for the hair for owners looking for an entry and beauty sector, so Just Cuts point to join the Just Cuts U.K. continued to innovate and adapt – franchising family.
GLOBALFRANCHISEMAGAZINE.COM 69 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Fantastic Services
AT A GLANCE Fantastic FANTASTIC SERVICES Established: 2009 Number of locations: 530+ Location of units: U.K., Australia, U.S. Services Investment range: £6,500 Minimum required capital: From £1,500 Contact: [email protected], thrives by (+44) 0203 746 3106 “Cutting-edge harnessing technology is one of the most attractive technology benefits that we provide our How the home services franchisor is preparing franchisees with” for the future The company has spent over a decade perfecting the way bookings kept us going was that we didn’t want to run a company that misses half and scheduling are made with of the opportunities, but its owners constant updates to its technological drive expensive cars and solutions. Its unsurpassed devotion live in fancy properties.” to automating the business is Since establishing the company already reaping benefits by making in 2009, Rune and Anton have had the customer journey as smooth as the vision of combining cutting-edge possible – while, at the same time, technology with marketing expertise, cutting out the need for human and completely transforming the monitoring and operating costs. way people and businesses book According to Jenny Farenden, head these services. During the past of franchise marketing at Fantastic 12 years, they’ve invested over Services, “cutting-edge technology £20m in building custom solutions is one of the most attractive benefits created explicitly for the needs of its that we provide our franchisees with”. customers and franchisees. Fantastic Services offers investors By following the “Copenhagen three different options – working, agreement”, Fantastic Services, area development, and master which specializes in cleaning, franchise. The working franchise gardening, pest control and is the most affordable opportunity. tradesman services, currently It involves running a single unit or antastic Services, one of has more than 530 franchisees, stretching over three continents. managing a couple of teams while the most technologically still operating on-field. advanced franchises in The area development franchise F the U.K., demonstrated TECHNOLOGY WHERE IT model gives franchisees the exclusive a great performance during the COUNTS, HEART WHERE rights to sub-franchise and develop pandemic and continues that in a IT MATTERS the brand in a particular area or straight line. The company founders Fantastic Services has built a custom Anton Skarlatov and Rune Sovndahl software that addresses the specific county. The master franchise option, reveal that the secret behind the needs of its franchisees and is an all- meanwhile, guarantees the rights for brand’s success is the so-called in-one place operation, to manage a whole country. “Copenhagen agreement”. team and client communication. If you want to be part of a business Anton says, “ Rune Sovndahl and I In essence, it connects all the data that continues to grow, implements committed to investing 80 per cent from two apps (for clients and new ways of communication and of all profit back into the business. franchisees) with its customer care launches new strategies and I must tell you that it wasn’t easy in centre, allowing franchisees to track services, then Fantastic Services is the first three to four years. But what and handle each step of the process. the right choice for you.
70 GLOBAL FRANCHISE | ISSUE 6.2 THE GLOBAL MENTORSHIP AWARD
[email protected] | www.helendoron.com INSIGHT
Why the pandemic is causing a boom in franchising Economic uncertainty and layoffs across corporate America have led budding entrepreneurs to enter the world of franchising
WORDS BY LIL ROBERTS
oday, even as the world reopens, challenging “Franchised businesses are among COVID-19 safety the few success stories of the global T regulations remain in place, leaving business owners to pandemic of 2020” wonder whether they will be able to survive another day. But some payroll and rent with 50 to 87 per Hundred Years War. businesses did survive and thrive – cent in revenue reductions, as a The war, which lasted from THE AUTHOR 2020 Small Business Financial 1337 to 1453, devastated much of Lil Roberts is CEO and despite the coronavirus pandemic. Health Survey determined, and France and laid waste to valuable founder of Xendoo, a Franchised businesses are among were soon forced to lay off millions cloud-based fintech the few success stories of the farmlands. This period also company based in global pandemic of 2020. Due to of employees. brought countless deaths – one- Fort Lauderdale that the unique circumstances of these Although it seems counterintuitive, third of Europe’s population died specializes in online times, this success story warrants this massive rise in unemployment due to famine and the Black Death. bookkeeping and further examination. contributed to a boom in franchising. But with that tragedy came a new accounting focused In December 2020, almost no one Many other pandemic-related focus on reviving agriculture – on the small business even knew what a novel coronavirus factors have also contributed to this critical to the economic recovery owner. She is a serial was. Come March 2020, when surging interest in franchises. These throughout Europe. entrepreneur with same factors also tend to reappear a passion for small the global pandemic ensued, no Post-war, new innovations cyclically in times of terrible business and is known country, no human being, was left in farming began to appear. as an innovator with unaffected by the devastation in economic crisis or contraction. Farmers began alternating their an enviable ability to the wake of the COVID-19 virus. use of land between arable and foresee market trends U.S. governors exercised their Economic recession pasture every five years – a [email protected] emergency powers to shut down kick-starts innovation critical contrast to the practice of their states, forcing businesses to History shows that times of medieval open field agriculture. shutter for months. desperation also bring innovation. In 1534, an author named Master As the crisis continued beyond Some evidence of this trend goes Fitzherbert even recommended an the initial six weeks of lockdown, back to the 14th century, when advanced form of mixed-farming small businesses struggled to make looking at the aftermath of the agriculture before the advent of
72 GLOBAL FRANCHISE | ISSUE 6.2 modern fertilizers in his book, The pandemic? When the economic businesses and individuals to file Boke of Husbandry. This period cycle looks bleak, how do you for bankruptcy, for others, it opened sowed the seeds for the Agricultural find the silver lining? the door to reinvention Revolution which is considered to On the upside or the downside of and entrepreneurship. have begun in the 17th century and economic cycles, there is a domino- Franchise sales tend to continued throughout the centuries effect across a wide range of increase during periods of high that followed. industries and understanding your unemployment that include the Fast forward to 500 years to the business’ place in the supply-chain top end of the salary scale. Since SARS (SARS-CoV) outbreak that is critical to success or failure. at least 10 years has passed since spread across Southern China Long- and short-term planning is the last economic recession, in 2002 and the drastic impact key, and it is one of the reasons those top-earning wage earners this pandemic had on the world. why, in 2021, there is so much had significant personal savings, Yet again, the same trends of interest in franchises. A business retirement accounts and home innovation and entrepreneurship blueprint and an experienced equity – sufficient capital to invest appear in reaction to the era’s social support staff is part and parcel of in franchises. and economic instability. the franchise industry model. Moreover, during times of For example, Alibaba was economic uncertainty, those with founded in 1999 as an online B2B Economic pressures access to that kind of capital often marketplace but, in a lesson for lead to self-examination choose to invest in themselves today’s times, survived and thrived and self-investment rather than the job market. The despite this pandemic. By 2003, Typically, when layoffs occur in prospect of starting a new business the SARS outbreak became a full- one industry, it has a ripple effect is exciting and daunting – especially fledged pandemic and shut down across a wide variety of industries. during a pandemic. However, for China’s manufacturing sector. As For instance, when COVID-19 shut many, the benefits of franchising a young company, Alibaba was down the hospitality industry, during a tough economic cycle hit at the worst possible time. tradeshows and conferences were outweighs the negatives. Alibaba sent their workers home, also canceled. Let’s discuss the top three but workers took their desktop This impacted the entire supply reasons why people turned to computers with them to keep the chain and financial ecosystem, franchising during the 2020 company’s e-commerce platform devastating the airline and travel COVID-19 pandemic and uncertain operational, working 12-hour days. industries, decimating catering and economic cycles: As people began to quarantine, food vendors, as well as logistics Chinese consumers turned to the and freight businesses. Access to debt capital internet and, instead of going bust, Psychologically, desperate 1 with low interest rates Alibaba boomed. economic pressures often force During the COVID-19 pandemic, the So how do you discern people to re-evaluate themselves to Federal Reserve kept its benchmark business opportunities during a survive. While COVID pushed many interest rate near zero due to the
GLOBALFRANCHISEMAGAZINE.COM 73 INSIGHT
“While COVID pushed many businesses and individuals to file for bankruptcy, for others, it opened the door to reinvention and entrepreneurship”
coronavirus. In fact, the lowest Stronger business support a remote workforce, increased Fed rate ever recorded was in 3 opportunity for their e-commerce capabilities, and March 2020 at 0 per cent to 0.25 success found new revenue streams that do per cent, and the Fed pledged to Franchisees are also buying into a not depend on a physical storefront. keep it in that range until 2023. sense of security. The International Business owners have learned how For several reasons, this is an Franchise Association’s data to scale up or scale down a workforce attractive financial proposition reveals that 92 per cent of franchise and how to make strategic budget cuts to an entrepreneur or small businesses are still operating after to survive. Entrepreneurs also learned business owner. First, unlike five years in the United States. which types of businesses perform private loans, the interest fees Comparing this statistic to well in a pandemic, including food and charges on debt capital is the fact that 50 per cent of small and goods-related delivery. It is these tax-deductible. Moreover, unlike businesses nationally fail after franchise sectors that are also likely to equity financing, debt financing five years, franchising is the more experience the most growth in 2021. gives a business owner or lucrative and secure option for The pandemic has also caused a franchisee complete control over those looking to venture out into general shift in the way people do his or her operations. the world of entrepreneurship. business. Many industries have now In addition to the low taken a new mobile-first approach, interest rates, we also often see Will this trend continue? such as restaurants with menus and franchisees tap into their savings The industries hit the hardest by the ordering and logistic companies for – including their retirement pandemic are slowly finding their last-mile delivery. This accelerated accounts, such as 401(k), to pay way back to a new normal. So, will movement to the web and the for the high up-front cost of a the franchise boom continue into the digitization of many industries franchise. However, franchisees second half of 2021? presents many new opportunities for are also positioned to recoup Several key economic indicators change. When this happens, existing any personal loans to the point to continued growth in the businesses have a harder time franchise once the company franchise space – especially in the retooling than new businesses. becomes profitable. second half of 2021. First, at the end Finally, entrepreneurs who took a of 2020, the unemployment rate was “wait and see” approach over the last The franchise at 6.7 per cent – a high rate. year-and-a-half are also more likely 2 playbook This allows new franchisees to make their franchise purchasing Franchise systems also provide access to labor at a cheaper cost. decision now as the country continues franchisees a successful business The pandemic also forced the to resume normal business operations. model or “playbook.” This closure of thousands of businesses Consequently, this is a “perfect playbook includes a franchise’s across the country, creating a storm” of opportunity. Low interest know-how, procedures, glut of commercial real estate rates for a continuous period and intellectual property, brand and at historically low rental rates. historically low retail rental rates – right to sell branded services and These bargain prices are another two key factors that are creating ideal products in a specific geographic potential driver for the growth of conditions for strong economic growth, “franchise territory”. This helps the franchise industry in 2021. beginning in the second half of 2021. ensure the franchisee that there After the business pain will be no encroachment on and suffering of the its customer base by another pandemic, entrepreneurs franchisee in that region. have become nimbler Franchises also provide strong with the ability to brand awareness. This, in part, is helped by national advertising, which is paid for from a pooled funding cooperative to support regional franchisees and build name recognition. Franchisees also receive pre- opening and post-launch support with training, capital resources and site selection. By “buying” into an experienced team and proven system, this, arguably, lowers the risk of beginning a new business operation.
74 GLOBAL FRANCHISE | ISSUE 6.2
BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE Become a OFFICE EVOLUTION Established: 2003 Number of units: 140 locations awarded, part of the 75+ open Location: U.S. Investment range: $374,000 - $1.6m Minimum required capital: $500,000 (liquid) / $1m (net worth) flexible future Contact: Tamara Atkin; [email protected] of workspace officeevolution.com/development “We’re looking for sophisticated franchising executives or serial Office Evolution is seeing a pent-up demand for entrepreneurs its services, and wants to share its success with – franchisees savvy franchisees who are really good at business being surrounded by entrepreneurs and small business owners; the exact development clientele that now utilize the more than 70 Office Evolution locations and sales, and situated across 26 states. understand “I love people who start businesses,” says Hemmeter. “Our target market the hospitality is business owners who are typically 35 to 55 years old, have a family and mindset” kids, and live in the suburbs. We want to bring something to them that’s very The global pandemic has affected convenient; these are people who used many industries, but for Office to work downtown, but now want to Evolution, it has only strengthened work where they live.” the brand’s core premise. The simple fact is that individuals don’t CORNERING THE MARKET, want lengthy commutes into cities CLOSER TO HOME anymore; they want to work where It’s been over two decades since they live, and achieve a richer work- Mark Hemmeter, founder and CEO Hemmeter first got the idea that life balance. would eventually launch Office By targeting suburban and Evolution, but the brand is still as neighborhood locations, Office committed to its original goal as ever: Evolution is bringing its services to oday, Office Evolution is bringing flexible workspace solutions its clients’ doorsteps. This strategy known as the U.S.’ largest to suburbs and neighborhoods, rather is already paying off – not only was provider of locally owned than trying to compete in big cities. Office Evolution able to remain T open throughout the pandemic due and operated flexible “Back in 2003, nobody had any idea workspace locations – but it began, like what flex offices, shared offices, or to its essential service listing, but many successful ideas do, as a passion. virtual offices were. The big change the concept also opened five new Founder and CEO Mark Hemmeter is awareness,” says Hemmeter. “The flexible workspace centers during was the client of a flexible workspace core need is unchanged: the need the height of the year’s disruption. competitor back in 2000, and fell in for small business owners to have a These are situated throughout Texas, love with the business model. professional place to work.” Oregon, Georgia, and Virginia; with Specifically, Hemmeter appreciated And that consistency has paid off. each being used by the exact kind
76 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxOffice Evolution GLOBALFRANCHISEMAGAZINE.COM 77 GLOBALFRANCHISEMAGAZINE.COM “That never occurred pre- occurred “That never to join like you’d think that you If directly with Office Evolution to with Office Evolution directly are “landlords revenue: generate ‘I need saying calling us directly now into this business to get want help. I to do something flexible, want and the infrastructure have but I don’t Hemmeter. says to do it.’,” the pandemic, so if anything pandemic has just accelerated happening. already were that trends remote to see more going were We to five to take going was but it work, years.” 10 Ohana – growing Office Evolution’s reach – then ‘family’ for Hawaiian and become a part of the out today revolution. workspace flexible
But what if a prospective franchisee if a prospective what But only one employee needed at the one employee only front desk. Because of this, centersfront cent recurring with a 93 per operate income model. with experience any have doesn’t workspace running a flexible that they prefer “I almost business? “because then Hemmeter, says don’t,” If bad habits to unwind. got we’ve hospitality-oriented, creative, they’re thenbusiness development-oriented, fit.” good can be a really they EVOLVING WITH WITH EVOLVING THE TIMES brought changes One of the biggest the pandemic is that about by work looking to now are landlords
“The sweet spot is somebody spot is somebody “The sweet not just Office Evolution’s It’s “We provide an extremely flexible, an extremely provide “We With its ongoing growth, Office growth, With its ongoing with is looking to partner Evolution whosophisticated entrepreneurs side of the the hospitality understand demand throughout business. Pent-up isthe pandemic means that the brand this boom of interest a huge expecting in speaking and its interested year, thatwith the right kind of operators plans a reality. its expansion can make and five three opens between who Hemmeter. explains locations,” sophisticated looking for “We’re serial entrepreneurs or executives at good really are who – franchisees and sales, andbusiness development mindset. the hospitality understand bunch good a really got already We’ve to interested we’re and of franchisees, more.” even find work- a solid clientele that can achieve the for Franchisees balance, either. life center their operate will only brand with during normal business hours, SOPHISTICATED SOPHISTICATED ENTREPRENEURS WANTED close-to-home option, which iswhich option, close-to-home close We’re in the U.S. rare relatively to home because people said that downtown need to go don’t they “We’re Hemmeter. says anymore,” you can have because flexible super week, a two or a day for an office We’re than the full month. rather which get, you can as about as flexible isworld the new what is of local entrepreneurs that inspired of local entrepreneurs place. in the first Hemmeter to need.” going SHOW PREVIEW: PARTNER CONTENT
AT A GLANCE The unmissable MULTI-UNIT FRANCHISING CONFERENCE
Where: Caesar’s Palace, Las Vegas event for When: August 31 - September 3, 2021 Contact: [email protected] multi-unit multiunitfranchisingconference.com oin us for the 20th Multi-Unit Franchising J Conference – the must-attend event operators that brings together the best and brightest leaders in multi- unit franchising for learning, networking and deal-making for growth. The Multi-Unit Franchising Conference celebrates After a year of change and its 20th anniversary challenge, the opportunity to gather for growth is more important than ever. With attendance by leading franchisors, multi-unit franchisees, and suppliers, and featuring top speakers and educational content, this year’s conference is one that can’t be missed.
DISCOVER NEW BRANDS AND NEW IDEAS If you’re interested in growing your portfolio, organization or bottom-line, the exhibit hall will be your source for solutions. From franchisor leaders presenting their brand opportunities to innovative products and services from leading suppliers, you’ll leave Las Vegas with new contacts, solutions, and YOU WON’T WANT TO MISS THE HIGHLY ENGAGING opportunities for growth. KEYNOTE SPEAKERS THE MULTI-UNIT FRANCHISE COMMUNITY TOGETHER No other industry event brings together all the stakeholders in multi-unit franchising success. This conference hosts leading multi-unit franchisees, franchisors, as well as the suppliers and Kevin O’Leary Scott Kelly Nigel Travis connectors that accelerate growth and support deal-making. Investor on ABC’s Shark History-making NASA Chairman, Dunkin’ Brands Inc It is truly a gathering of the Tank, chairman of O’Leary astronaut; first to complete and previously served as chief Financial Group and a year-in-space mission. executive officer from January leaders from across diverse areas bestselling author who He will offer perspective on 2009 through July 2019. The of franchising, but with one goal will talk about his business how to manage the anxiety, author of The Challenge Culture, – to learn and support multi-unit experiences including his stress and uncertainty that Nigel will share thoughts on franchising success. With more franchise and is facing the how challenging the way you do than 1,500 expected attendees licensing projects global workforce business can lead to success and countless networking opportunities, you can look
78 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxMulti-Unit Franchising Conference
16,000+ UNITS GLOBALFRANCHISEMAGAZINE.COM 79 GLOBALFRANCHISEMAGAZINE.COM
280 EXHIBITORS 75% BRANDS SEEKING NEW
ATTENDEES $19bn REVENUES 1,720+ – Georgi Zac Zac, 29 units: Burger King, Au Bon Pain King, Au Zac Zac, 29 units: Burger – Georgi “The experience of having the franchisors, having of experience “The it – putting and bankers lawyers, franchisees, days” three an amazing for – makes together all 2019 KEY FIGURES
– Fred Burgess, 35 units: Twin Peaks, Papa John’s, John’s, Papa Peaks, Twin 35 units: Burgess, – Fred Marriott Hotels, IHG Hotels Marriott Hotels, “These are the leaders the “These are in the franchise nobusiness. There’s you where other event can with mingle this amount of knowledge” “COVID-19 has impacted many has impacted many “COVID-19 Get new ideas and inspiration inspiration ideas and Get new The event provides numerous numerous provides The event BUILT FOR THIS MOMENT FOR BUILT the inspiring keynote From agenda, to the powerful speakers team Media Update the Franchise on building an impactful is focusing learning as the global for platform erates. accel- recovery of our franchise friends and friends and franchise of our extend We families. extended wishes to thoughts and best our been impacted have who those to being together and look forward said CEO and co-founder again”, look forward “We Thilgen. Therese everyone for a forum to providing networking, in great to engage hall full of content and an exhibit and business brands franchise new Vegas!” in you services. See from our speakers, consisting consisting speakers, our from of all franchisees of multi-unit will that perspectives sizes. Hear growth for strategies your sharpen And goals. your and achieving of variety with a all delivered it’s sessions to and breakout tracks many learning for diverse present in and opportunities challenges franchising. multi-unit Looking for actionable takeaways to to actionable takeaways Looking for This year’s organization? your grow to be filled promises conference to content designed with relevant and drive goals your meet you help successful growth. EXPERIENCE ENGAGING EXPERIENCE ENGAGING CONTENT forward to meeting seasoned to meeting seasoned forward and panelists operators multi-unit the conference. throughout attendees, for events networking and to mix and mingle in a relaxed environment. comfortable INSIGHT
The power of emotion in driving franchise leads post-COVID Relatability and emotional connection are key when it comes to harnessing effective video marketing
WORDS BY TREVOR RAPPLEYE
he global pandemic remembering. Our brain has no opportunity to dig deeper and and effects of social problem recalling emotional pull-on heartstrings creating real, T distancing have forever experiences, yet we often forget the human connection. When you changed franchise average, unemotional moments. capture that emotion on camera, development as prospects crave Because of this, franchisors need don't let it pass you by. Use the real, authentic, human content to get creative with their video pauses to ask questions like: "Why that resonates at the emotional marketing efforts to cut through are you reacting this way?" and: THE AUTHOR level. With that said, it's imperative the noise and leave viewers with a "How does this make you feel?" Trevor Rappleye franchisors understand how lasting impression. Capturing is the CEO of to utilize emotion within their If a picture is worth a thousand explanations FranchiseFilming, marketing tactics to connect with words, then a video is worth even like: "I never a video marketing company that helps potential franchise candidates. more. A simple way to capture thought I'd businesses and Because 95 per cent of human emotion with videography is by love what I franchises win more behavior happens at a subconscious confronting emotional moments do," and: clients and tell their level, the emotional connection on camera. Rather than showcase story with monthly could be the most significant factor a talking head and asking standard marketing videos in converting your ideal prospect corporate questions, go outside franchisefilming.com into your ideal franchisee. of the box by evoking Many franchise brands are emotion with your looking for creative solutions to video subjects. connect with potential franchise Try ditching candidates and make an impact the scripts with their video marketing. If you while filming want to drive lead generation as a and ask franchisor, you must understand open-ended what drives your audience's questions to decisions and form an emotional add authenticity connection with them. By doing to your videos. so, you can make your brand By honing in more memorable and attractive on the little to potential franchisees. The moments fundamental way to cultivate or pauses emotion is through innovative caught on visual storytelling. video, you have a Establishing an unique emotional connection When it comes to securing franchise leads, emotion could be the sole differentiator in whether an agreement is signed. With our brains continually being flooded with messages, it is crucial businesses create content worth
80 GLOBAL FRANCHISE | ISSUE 6.2 THREE WAYS FRANCHISORS CAN CREATE CONNECTIONS THROUGH “If you want to drive lead VIDEO STORYTELLING generation as a franchisor, you LEAN INTO EMOTIONAL MOMENTS must understand what drives 1 When capturing your franchisees' emotional moments on video, you add personality and vulnerability to your videos. your audience's decisions It's a common misconception that the better curated, and "professional" or scripted and form an emotional your videos look, the better they are. The truth today is real and raw sells. The days connection with them” of overproduced and perfected videos are out. People appreciate human connection now more than ever. Lean into emotional "I never thought I'd be able to own my The key differentiator moments on video and capture the "why". own business" on camera adds raw Incorporating emotion into your and genuine emotion to the video. brand's storytelling will shorten DON'T FOLLOW THE BEATEN PATH the sales cycle and remove the 2 Consider different, out-of-the-box ways The effect of emotion annoyance of redundant sales and you can capture emotion in your video The impact of emotional marketing messages. marketing. Avoid the overused trends, music connection in visual storytelling With thousands of franchises to and styles that your competitors and other goes beyond just creating a unique choose from, it's essential to ask brands are doing. Make your videos unique. Search for video inspiration in non-traditional feeling; it can be the single factor what makes yours stick out from areas or even brands and industries different that prompts someone to take the rest. Experience sells. Consider from yours. You don't have to reinvent the the leap and invest. Being able what makes your franchise wheel, but you shouldn't look like everyone to connect with a prospect on an different and what life is like as one else. Utilize video marketing to stand out emotional level makes your brand of your franchise owners. from the crowd. human and relatable. If there are thousands of A common mistake within franchises just like yours, why would CONSIDER THE FRANCHISE franchise business strategies is someone want to choose yours? While it may seem like common sense, it's hitting prospects with stats right If you want people to get 3 off the bat rather than telling a easy to forget who we're marketing to when excited about your franchise, filming. While something might make sense story. While stats and metrics there needs to be an established to us as the franchisor or business owner, are still vital to a franchisee, they emotional connection. Every consider how your audience will perceive it. also seek a clear understanding touchpoint with your prospects More importantly, consider the franchisee. of what it means to be part of must be treated like a face-to- Consider the impression you want to leave your franchise system. face conversation. Consider with franchise candidates and how you want The goal should be to create how you can uncover the story them to feel. By reverse-engineering your emotional and inspirational about how extraordinary your marketing efforts with the franchisee at the top of your mind, you're sure to stay on track. brand videos that show success; franchisees' lives will be when you want people to envision they invest in your opportunity. themselves as a franchisee. After overcoming a trying year, there's never been a better time to foster that emotional, authentic connection with franchise candidates than now. Happy filming!
“Every touchpoint with your prospects must be treated like a face-to-face conversation”
GLOBALFRANCHISEMAGAZINE.COM 81
SEPTEMBER 26-28, 2021 | PHILADELPHIA, PA
PRESENTED BY
We are elated to announce that Springboard is back, live and in-person. As so many of you already know, there is truly no comparable event for emerging and [re]emerging franchisors. Over the past year, franchisors have faced unprecedented obstacles – and many have emerged stronger than ever. Don’t miss this opportunity to learn and collaborate with other franchise leaders who have been in your shoes. We can’t wait to reunite the best in franchising together in the same room.
Springboard 2021 will take place at the brand new W Hotel in Philadelphia. We will be among the first guests to take advantage of the hottest (and cleanest!) new spot in town. With over 45,000 square feet of event space, we will be working closely with the hotel to ensure everyone’s health and safety is top priority.
franchisespringboard.com / 215.825.3100
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BEHIND THE BRAND: PARTNER CONTENT
AT A GLANCE FIT20
Established: The franchise 2009 Number of franchised outlets: 160+ Location of units: U.S.A., Netherlands, U.K., Germany, France, Belgium, Sweden, Qatar, New Zealand, Morocco, Caribbean changing Investment range: Country dependent Minimum required capital: Country dependent Contact: [email protected] the fitness fit20.com
FIT20’S UNIQUE paradigm APPROACH TO HEALTH AND FITNESS fit20 is a rapidly growing global franchise for personal health fit20 is changing people’s lives in just and fitness. It is unique in its 20 minutes every week approach to health and fitness: clients significantly improve their health and fitness by training just 20 minutes per week, always by make them feel, you ask? Slightly f you ask a person how appointment with a certified fit20 guilty, a nagging feeling they ought much time you need trainer, in small-scale studios. to, or frustrated with themselves for to spend at a gym to Since its start in the Netherlands I become strong and fit, having given up entirely. in 2009, it has stood the test of What if you could offer them they will say two to three times a time. Launched in Europe in 2015 week, for an hour. a way to become strong, fit and and expanding, it now has more They might say you need to run a healthy by training just 20 minutes than 166 studios operating in few times a week. Or do both. If you a week? In everyday clothes and Europe, Asia Pacific and the U.S.A. then ask if they manage to do so, always with a personal trainer? fit20 provides personal training they will say they want to but don’t. They might say that is too good to for individual clients in modern, In between busy jobs, managing be true. You need to break a sweat clean, and cooled studios. It daily life, and spending time with at least a few times per week to get combines optimal personal family, there isn’t much time left. any results. This is where the fit20 convenience with substantial health How does not going to the gym franchise comes in. benefits for its members. Traditionally fitness gyms typically serve eight to 18 per cent of the general population. fit20 aims at the much larger group of over 80 per cent. In this group, people of 40 years old and over are highly represented. The once a week program provides the perfect solution to the challenge of maintaining personal health and fitness and having a busy lifestyle, and/or the difficulty of keeping up a weekly health and fitness regimen. As such, the fit20 franchise offers an unparalleled business opportunity with huge future potential. It serves a very large segment of the population: the vast majority that knows it should partake in some kind of fitness, but hasn’t found a way to actually do so. This segment consists of both professionals in demanding jobs as well as the growing aging
86 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - Xxxxxxxxxxxfit20 GLOBALFRANCHISEMAGAZINE.COM 87 GLOBALFRANCHISEMAGAZINE.COM [email protected] [email protected] INTERNATIONAL CONTACTS CONTACTS INTERNATIONAL Belgium: [email protected] Caribbean: France: France: [email protected] Germany: [email protected] Morocco: [email protected] Zealand: New [email protected] The Netherlands: Qatar: [email protected] [email protected] Sweden: [email protected] U.K.: [email protected] U.S.A.: *Long term time course of strength of strength course time term *Long minimal dose resistance adaptation to longitudinal growth Retrospective training: training cohort through modelling of a large J., Giessing, J., J., Fisher, Steele, records. M., Kroeske, Wolf, P., Androulakis-Korakakis, R. (2021, January 27) B., & Reuters, A single fit20 studio business single fit20 studio business A to has grown Once membership scientifically broken. Training once once Training broken. scientifically with a week of intensity will effort become the norm. THE FIT20 FRANCHISE THE FIT20 FRANCHISE OPPORTUNITY time a better been hasn’t There your to claim the rights for for works fit20 territory. master for works and fit20 its members and owners franchise its master owners. franchise unit economics. great offers achieved is break-even Typically during months six to nine, at The members. 80 to 100 around should be at studio growth year first more. or 120 members the studio has become 200-plus, A fit20 studio can profitable. very Becoming 300 members. over have is an attractive owner a multi-unit Although business proposition. owners franchise some master with the impact of struggled have their lockdowns, and 2021 the 2020 riding now are owners franchise of the health and fitness wave the the pandemic. caused by focus and The outlook is healthy opportunities abound.
The scores of impressive impressive of The scores the Steele has been studying he of 2018, In the course is The conclusion of the study “Clients significantly improve their their improve significantly “Clients just training by health and fitness by always week, per 20 minutes fit20 certified a with appointment studios” in small-scale trainer, FIT20 STUDY Since its beginning, fit20 has been has been Since its beginning, fit20 with doubts and scepticism met week once a Training – of course. without breaking 20 minutes, for That clothes? in daily a sweat, unbelievable. sounds pretty client testimonials and its business success worldwide began to shift some of the current Sport Enter fitness paradigm. Science associate and Exercise Steele at Solent James professor in the U.K. University – high fit20 offers kind of training resistance of effort intensity He years. many – for training Netherlands visited fit20 in the fit20 The proprietary in 2018. and the App software Trainers caught immediately data it stores his scientific attention. data from anonymized received fit20 members almost 15,000 one to almost for do fit20 who he 2021 January In years. seven what of published the preprint as The fit20 is becoming known sports is the largest It Study*. ever science study and exercise people, in a With real conducted. fit20 members setting: 15,000 real a period of about seven over The years. very results are Once a positive. unequivocally a substantial fit20 provides week and fitness. in strength increase of baseline, gender Regardless by as proven works, fit20 age, or conducted ever study the largest science. in sports and exercise is fitness paradigm The current THE LANDMARK THE LANDMARK indeed. impressive population. fit20 offers a unique a unique fit20 offers population. health improves which training way, feasible in a and fitness client long lasting guaranteeing term and long membership and masters for opportunity owners. franchise INSIGHT
Three steps to opening your first international franchise location Relatability and emotional connection are key when it comes to harnessing effective video marketing
WORDS BY MICHAEL ANDREACCHI
ranchisors have Invest in the local the product or service will fit in a certain level of community before expanding to that country. pride in the location 1 While franchisors have the F where the business Build a strong intimate knowledge of where started. With brand recognition, they built the business, to expand flagship location extensive knowledge of the internationally, franchisors need 2 Most franchisors think the local market and the ability to to tap into the local insight. As first step to international franchise THE AUTHOR test efficiency, operators know mentioned, each country has expansion is selling a master In 2005, Michael their businesses intimately. its own culture, language and franchisee, or a franchisee to serve Andreacchi co- When a franchise launches, the as the franchisor of the brand in founded Junk King out business environment that needs franchisor will typically aim to of his two- car garage to be analyzed. In the franchise a selected territory. And, yes, a in San Carlos. Since grow with people who know the business’ home country, the master franchisee is important 2009, Michael and his local community and have a franchisor will typically have and a great launching point for team have franchised level of local pride. But as with an instinctive knowledge of the expansion. But, it can be difficult to more than 100 all franchisors, the executives culture, language and business secure a master franchisee at first. locations across the have an eye on growing an practices that won’t easily transfer A master franchisee will likely want U.S. and Canada international presence. Below are to a new country, no matter how to see some proof that the franchise the three steps needed to open similar the cultures may be. model will work and thrive in the the first international franchise However, expanding new country. This is where a strong locations – and one precaution internationally should begin with flagship location will come in handy. for franchisors to consider. a similar country. For franchisors The flagship location will serve First, every country has a in the United States, Canada as the first success of the franchise distinct culture that franchisors might be the logical launching model in the new country. With a need to learn confidentially point for international growth. franchisee that is dialed-in to the and understand the functional While Canada is a different business, franchisors can build differences of the new market. country with its distinct culture, trust with the new owner and From there, franchisors can build it has a variety of similarities to potential owners while providing a strong and steady flagship the United States which can help the support and guidance to grow franchise location to ease the franchisors find success. and succeed. Once franchisors have waters as franchisors enter each Even if the new location has a the first person who is willing to new country. Finally, franchisors similar culture to existing locations, dip their toes in the water, other should aim to integrate the research the new locations in potential business owners will see business model to match the local depth. During that research, that first success and dive in. Once demand without losing the core franchisors have to ensure that franchisors have the successful of what makes the business, well, they are investing locally. Each local franchisee to demonstrate the the business. However, if it isn’t market will have its own experts brand’s ability to develop and going to work in a certain market from the business consultants to expand internationally, due to a variety of reasons, the marketers who can provide franchisors can begin to one big reason or a lack of local perspectives and insights to attract master franchisees. preparation, don’t force it. Other help franchisors get small things With the strong numbers that opportunities to grow will always right. Franchisors need to ensure this flagship location earns, exist without trying to fit a square that they understand the bread and the owner clears the way for into a circle. butter of the new country and how the next several franchisees and
88 GLOBAL FRANCHISE | ISSUE 6.2 "For franchisors in the United re-using materials whether through States, Canada might be the donations to non-profits or recycling scrap materials and e-waste. If we logical launching point for can repurpose items and increase our sustainable footprint, it makes international growth” our business worth doing. The COVID-19 then the master franchisee to join franchisees tend to be experienced precaution the franchise system. operators who can succeed with In 2021, it’s important to understand the franchise roadmap provided by the approach to the pandemic that Integrate business the franchisor. By sticking to the each country took as franchisors model locally core business model and how it plan for expansion. What industries 3 Ideally, the first owner works, business models have some were designated essential? How did or the master franchisee would flexibility to adjust and integrate into businesses adjust to meet different be a local business consultant, a new culture. While there is room consumer demands? Everyone but if they aren’t, they can still for adjustments to meet the local learned a lot during the pandemic succeed. As a franchisor, there demand, the core of the business and franchisors should research how are other opportunities to build should still be able to function in the franchise brands in their industry upon such as investing in a local new location. But again, don’t force a were affected in the new country. business consultant. With master square into a circle. Overall, franchisors need to invest franchisees – and all franchisees – For the junk removal industry the time, money and communications franchisors need to provide plenty specifically, all the sustainable into the new country that is targeted of assistance. businesses are playing the long for expansion. By researching the By providing master franchisees game. Sure, it’s cheaper to throw new country, franchisors can invest the training, the support and the out cardboard than to recycle it. But in the local economy, build a strong tools to succeed, they will be able often the mission is about more than flagship location and integrate the to replicate it for new franchisees just sensible business practices. For business model seamlessly into the under their leadership. Master example, Junk King is focused on new country.
GLOBALFRANCHISEMAGAZINE.COM 89 BEHIND THE BRAND: PARTNER CONTENT
A service AT A GLANCE CITY WIDE FACILITY SOLUTIONS
Established: 1961 (founded), 2001 sector seeing (franchising) Number of franchised outlets: 70+ Location of units: U.S. and Canada Investment range: Varies by location significant Contact: [email protected], (855) 209 8970 International: Summa Franchise Consulting, Robert Stidham, [email protected] demand citywidefranchise.com
City Wide Facility Solutions is leading the building maintenance industry
ity Wide Facility clients. The company brings a Solutions, based in single point of contact solution to C the United States, is maintaining buildings and facilities now actively seeking of all types and sizes. City Wide international master license franchisees are valued partners that partners to work with its team to help their clients save time and solve allow people around the world to problems associated with managing access its unique franchise concept multiple maintenance vendors. through its international master City Wide is not a janitorial license program. cleaning company. City Wide is a management company in the building maintenance industry “Much of our franchise and focuses on managing the vendors and provides supervised success comes, in part, services. Everything from temporary maintenance labor, janitorial and from our outstanding minor maintenance services to painting, concrete coating and project management, has grown lawn care are managed through franchise partners and dramatically over the past two City Wide. their ability to use a proven decades owing to the continuous global growth in urbanization and model and business A GROWING BUSINESS industrialization around the world. SERVICES SEGMENT It’s this market growth systems to solve problems The global facility management opportunity that has led City Wide market was a $1.24bn business to respond by opening its franchise for clients every single day” in 2020. According to Fortune opportunity to partners in select Business Insights, the global markets globally. Building upon decades of both market is projected to grow from franchise and business success, the $1.25bn in 2021 to $1.8bn in 2028 BUILT ON YEARS company is seeking to capitalize at a compound annual growth rate OF SUCCESS on the continued demand for its (CAGR) of five per cent during the The company has enjoyed services globally. 2021-2028 period. This growth tremendous success through the As the largest franchised is attributable to this market’s years by offering a unique solution, management company in the demand for services, which superior management systems, and building maintenance industry, is expected to surge once the had a franchise service offering City Wide has revolutionized the pandemic is over. designed to delight both facility building maintenance industry and This industry, defined as the owners and their tenants. manages more than 20 individual means of providing maintenance Its success has come in part from maintenance services for commercial support, user management, and its ability to attract high caliber
90 GLOBAL FRANCHISE | ISSUE 6.2 Behind the Brand - XxxxxxxxxxxCity Wide Facility Solutions
GLOBALFRANCHISEMAGAZINE.COM 91 GLOBALFRANCHISEMAGAZINE.COM If you share its passion, meet the share you If Middle East, and Asia where it has where Asia Middle East, and Potential interest. growing received license in a master interested partners sales, marketing a strong must have background management and senior to build it takes what and understand that sales organization a professional world-class a deliver can consistently in a global, best of client experience organization. class franchise the ability qualifications, and have of customer a high level to deliver dedicated staying while service invite we values, to the company’s Wide Facilities City to consider you license Solutions as a master leading world’s – the opportunity franchised growing and fastest in the company management building maintenance industry. Ultimately, City Wide isn’t Wide isn’t City Ultimately, The international expansion The international expansion is seeking partners The company they do best while partnering with partnering while do best they results, better citywide to deliver and less time. a singular solving on simply focused on it concentrates rather, problem; of its becoming an extension truly team. management client’s A FAMILY BUSINESS A FAMILY still run thewho The Oddo family, it founded today, company franchise Missouri in 1961. City in Kansas City, locations 70 Wide has approximately States and the United throughout of revenues Canada and systemwide than $400m. greater Wide is in response of City initiative its innovative to the demand for the around for service offering “much Oddo stated, Jeff CEO world. success comes, in franchise of our outstanding franchise our part, from to use a ability and their partners model and business systems proven clients every for problems to solve single day”. the in Europe, in select markets It is a highly professional professional is a highly It on both business team focuses Its the clients Wide represents City ‘executive’ franchise model in which which model in franchise ‘executive’ is the business of the franchisee management facility to provide various the services and manage those provide who vendors services to its clients. and client project development no inventory holds It management. a purchase require and doesn’t these are of equipment. However, which substantial businesses, in millions of generate its franchisees unit revenues. in franchise dollars Its than the contractors. rather a superior provides approach the way outcome to the traditional in facilities. managed services are and property Building owners what on can focus managers individuals to this lower cost, lower to this individuals and profitable high revenue, The investment model. investment in this business-to-business modest very service concept is to a franchised compared franchised concept or restaurant concept. retail high-street BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Tutor Doctor
AT A GLANCE TUTOR DOCTOR Be a part of Established: 2004 Number of franchised outlets: +720 Investment range: £33,000 – £67,700 Minimum requires capital: £20,000 the education Contact: [email protected] boom tutordoctorfranchise.com “No matter what Tutor Doctor is looking for likeminded franchisees situation we to continue its education mission find ourselves in, parents and ver since Tutor Doctor to provide a comforting shoulder burst onto the scene for parents and children across guardians are in 2004, it has firmly the world. E cemented itself as As the initial shock of the always going to one of the world’s leading tutoring pandemic started to diminish, the franchises. As parents and guardians franchisees and the home office be looking for across the globe recognized the team got their heads together and need for personalized, one-to-one developed ways to support not just ways to improve tuition for their children, Tutor their clients but any family who their child’s Doctor began its mission to become needed help. a household name. In no time at all, an Innovation learning” With a basic understanding that Squad was formed: a group of one-size-doesn’t-fit-all in regards on-the-ground innovators who to a child’s learning, it soon became were reacting and responding tutoring hours, with 40 per cent clear that the demand was growing accordingly to vital announcements. of those online. And in the first substantially. Fast forward over 15 With this team in place, Tutor quarter of 2021, Tutor Doctor years and Tutor Doctor now operates Doctor aims to help with forging the announced the acquisition of in over 700 different territories, path to recovery. an up-and-coming franchise across 14 countries. “The whole education sector brand, Code Wiz – an exciting new changed overnight,” said Frank venture that will propel the growth ADAPTING TO ADVERSITY Milner, president of Tutor Doctor. of both brands! In all that time, no other year has “With the support of the Innovation Rebuilding the world of tested the education sector like Squad, we established our mantra education is going to require 2020. However, equipped with the of ‘speed to change’, which quickly a lot of time, passion, and skills to help make the situation a emanated throughout the entire determination. In a collective little less stressful, Tutor Doctor global network. Every single person effort with others, Tutor Doctor franchisees rose to the challenge was singing from the same song is determined to be part of the sheet as we understood what support team for returning to needed to be done.” normal. It believes that the way to move forward is by creating equal CONSISTENT FRANCHISEE opportunities for the children of GROWTH the future, creating a chance for Whilst programs were being each one to thrive. implemented, it wasn’t long before Milner added, “no matter what savvy individuals recognized the situation we find ourselves in, true potential to be had in the parents and guardians are always education industry. In 2020, the going to be looking for ways to franchisor welcomed 62 franchisees improve their child’s learning. worldwide, all of whom spotted the There’s an opportunity to be had all chance to make a real difference to the time – this year, next year, and local families alongside building a the subsequent years after that. We successful business. truly believe that we can be part of Last year, the network delivered that catalyst for change…would you many hundreds of thousands of care to join us?” Image taken before COVID-19 pandemic
92 GLOBALFRANCHISE | ISSUE 6.2 BEHIND THE BRAND: PARTNER CONTENT Behind the Brand - Bodystreet
AT A GLANCE BODYSTREET
Established: 2007 Welcome to the Number of units: Over 300 Location of units: U.K., U.S., Germany, Austria, Italy, Tanzania Investment range: $80,000 - $100,000 Minimum required capital: $50,000 Bodystreet of Contact: [email protected] tomorrow bodystreet-international.com “Within just How Bodystreet is handling the COVID-19 a few years, crisis like a leader Bodystreet has managed to leave ithin just a few years, great momentum when it comes its competitors Bodystreet has managed to our digital transformation. The W to leave its competitors digital customer journey and the far behind in far behind in the field of increasing level of automation are electrical muscle stimulation (EMS) truly exciting.” the field of and become the world’s market leader, with 300 boutique fitness BODYSTREET electrical muscle studios in six different countries. ONLINE WORKOUTS Thanks to the exemplary The digital experience has stimulation and management during the COVID-19 developed like never before. crisis, Bodystreet was able to extend During the lockdown, Bodystreet has become its lead even further. During this time has launched Bodystreet Online of crisis, Bodystreet has managed to Workouts in livestreams, as well as the world’s focus on the essentials and continues online consulting as an alternative its technological transformation. to a studio visit. market leader” “Our business model allows In addition, Bodystreet is in the highest hygiene standards, is the middle of relaunching the since June 2020. A success for crisis-proof, and is certainly one of Bodystreet website worldwide into a Bodystreet and a great performance the winners in the corona period,” true local interaction tool; from price promise for even better support says Emma Lehner, co-founder. selection, trial training registration, services for its franchisees. “We are currently experiencing payment and appointment booking, The support of the franchisees to training support in the living has top priority, especially in the room. To further improve the digital current situation. Through constant customer journey, Bodystreet has and regular communication via been able to set up the Bodystreet webinars on current topics, and app and the Bodystreet e-store also through support in legal where Bodystreet nutrition products proceedings, the headquarters were can be purchased. able to support the partners. After “Digitalization has been on the first closures, the studios could our minds for a long time,” says be reopened much faster. Matthias Lehner, CEO. “In view of the The Bodystreet global worldwide corona crisis, it has now headquarters has found a way gained even more speed.” through this crisis: a strong presence and assistance to SUPPORTING STAFF its franchisees, but also the WHEN IT’S NEEDED MOST reinforcement of the digitalization Equally important, Bodystreet’s of its processes, always with the headquarters has thought about its future of the members, studio employees. Thanks to short-time employees, franchisees, and working, the company has been headquarters employees in mind. able to keep all its employees on the Bodystreet shows that whoever payroll. Not just that, the Bodystreet sticks together in times like these, global headquarters has managed survives them together, and to add new specialists to the team emerges even stronger.
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Innovation for simplicity’s sake Why consumer demand for convenience is making everyone’s lives easier, including franchise operators
WORDS BY MARC DASILVA
s we transition into a pick-up station, our January 2020 and waiting for them upon arrival, also post-COVID world, it’s partnership with DoorDash to launch enhancing the pickup experience for fair to say convenience is delivery capabilities directly from our delivery drivers. A Little Caesars is just one of many king in retail. However, website and app, and our installation that’s not to say that consumer of drive-thru windows at suitable brands implementing contactless demand for convenience is a direct locations put us ahead of the game for approaches to conducting business in result of the pandemic. Rather, what was to come. As COVID-driven the modern world. According to QSR THE AUTHOR COVID-19 merely accelerated the demand for contactless ordering and Magazine, the delivery sector alone Marc DaSilva is delivery escalated, we saw firsthand has “ballooned 20 per cent in the past the vice president rate at which businesses started prioritizing convenience as a just how impactful these systems five years, with Statista projecting of international online food delivery revenue to reach development for necessary factor of success. were not only for meeting customer $24bnby 2023." Little Caesars Pizza, As franchisors, it is important to needs, but also for streamlining Drive thrus are and is responsible have in place the necessary systems operations. The Pizza Portal pickup also busier for overseeing and processes that help our franchise significantly improves operational than ever, the strategic owners deliver on that consumer efficiency by allowing crew members development of both demand for convenience. While some to pre-assemble new and existing may assume that simplification for customers’ international markets. orders so Before joining Little the customer means more work for Caesars, he served as the operator, the opposite is true in they’re ready the managing director the digital age with ample technology of Dunkin’ and Baskin available to make things easier for Robbins brands in all parties. Southeast Asia, China Here is an overview of convenience- and New Zealand driven trends we’ve watched skyrocket within the last year, insight into the technology behind them, and reminders of how implementing such systems will improve processes for everyone involved – both consumers and franchise operators alike. Online and 1 contactless ordering and delivery Online shopping was on the rise for years before the pandemic. Especially in the restaurant industry, we’d begun incorporating more ways to serve customers outside of our restaurants’ four walls for some time leading up to 2020. Early adopters of such initiatives benefited greatly when the global health crisis hit. In the case of Little Caesars, the 2018 launch of our signature Reserve-N-Ready system featuring the Pizza Portal pickup, the quick service restaurant industry’s first heated, self-service mobile order
94 GLOBAL FRANCHISE | ISSUE 6.2 pushing many brands to incorporate for the consumer than ever before. the order process reduces potential for them into their businesses for the Little Caesars has found that people human error and increases potential for first time (i.e., ShakeShack), while are ordering much more than the satisfied customers and more business others are leaning so heavily into the standard pepperoni pizza because activity as a result. drive-thru model that they’re building online ordering is an easier, more Restaurants are not the only franchises more locations with no dine-in options visual, and ultimately more enjoyable benefiting from increased personalization. whatsoever (i.e., KFC, Dunkin’, and experience when customizing with our For instance, when a clothing chain more). Beyond restaurants, if Amazon interactive pizza builder. only sells from brick-and-mortar stores, taught us anything, it’s that there’s In a traditional restaurant setting product selection is limited by physical hardly anything we can’t sell and where the full responsibility of space. Establishing a strong eCommerce deliver online with today’s technology. correctly placing the order is on presence makes readily available purchase With such systems positively affecting the individual taking the order, options more diverse in terms of sizes, the franchisee’s experience both in personalization inevitably adds colors, and styles, proving once more that terms of operations and the bottom- operational stress. A “complicated” increased personalization can lead to line potential, why wouldn’t we request with more unique toppings more business. capitalize on them? and/or exclusions has a higher likelihood of being prepared Creating value without Personalization incorrectly, which of course leads to 3 compromising quality 2 As our technology becomes more unhappy customers who are less likely Early on in retail’s digital transformation, intuitive, we can offer more options to return. Letting technology handle businesses could get away with charging higher costs for innovative technology that prioritized convenience because it was novel. “Drive thrus are also busier Now, that’s not the case as all products and services are increasingly easier to obtain and than ever, pushing many brands more personalized. In today’s market, you won’t see a return if your competitor is offering to incorporate them into their the same services at what is perceived to be a similar quality but at a much lower cost. businesses for the first time” Today’s consumer wants high quality at an affordable cost – which some may consider an oxymoron. But more and more businesses are realizing that incredible value and incredible quality can go hand-in-hand, with Little Caesars being a prime example. In Sandelman & Associates’ nationwide survey of quick- service restaurant consumers, Little Caesars has been named “Best Value in America” for 14 consecutive years (2007-2020). Priding ourselves on that reputation, Little Caesars and its franchisees have refused to cut corners even as we’ve invested in more state-of-the-art technology, which has not only added value for the customer but has been well-received by franchisees. One of the biggest benefits of enhancing technology – beyond the business return that can come from satisfied customers – is improved data collection and analysis. Having more data to validate the value of our systems can make the franchise opportunity more attractive. Data adds credibility, and credibility goes a long way where value is concerned. Complex work; simple results; great return The digital age presents a unique dynamic in that we are constantly advancing our technology for the sake of simplification and convenience. The most successful technology is not necessarily the most complex, but rather it is what’s most efficient and user- friendly. As this digital transformation continues, the franchise brands that use technology to maximize convenience for everyone who interacts with them are the ones who will find the most success.
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5 minutes with... ELOI GOMEZ The CEO and co-founder of the Jeff franchise on rewriting the rules, nonconformity, and changing consumer habits
GF: What does success look pickup, delivery model, and a everything a person may need like to you? commitment to disinfection in the palm of their hand with a EG: If our clients, franchisees and best-practices, Jeff flourished single app. The goal is to build employees succeed, then that is in 2020 amid the coronavirus Jeff neighborhoods or what we success for me. The successes of pandemic while other like to call 'Jeff Hoods' in cities this triangle are all related. These industries were hit hard. Jeff around the globe. three groups are the ones that entrepreneurs opened 185 make the company work day-by- locations internationally from GF: What are the biggest day; they make Jeff successful. March 2020 through the end challenges facing your of the year. Since day one, we industry today? GF: What are the vital have believed in and chose EG: I traveled all over the world components behind a well- digital transformation and this to see how the laundry industry run organization? enables us to build a business worked in different countries EG: We stand as a team to of the future regardless of and saw that the same problems achieve the impossible: one team, the recent pandemic. This that were present in Spain were one culture, and we exist in this present in other countries, too. world to rewrite the rules. Values Laundry is a traditional sector that help create a work culture “Companies must and by including technology are necessary, a clear mission we could revolutionize the and vision, and a committed and accelerate their industry and offer a greater flexible team. I love finding new initiatives towards a convenience to users. Unlike the ways of living and the Jeff team overall laundry industry, Jeff as a whole are nonconformists digital transformation” thrived because we offer laundry by nature. solutions suited for today’s busy A cohesive team is also consumers and those looking for important. There is a great is why we work every day as a contactless laundry solution friendship between myself and a technology company, to during the ongoing pandemic. the other two Jeff founders and assert ourselves as the largest The pandemic has changed we have not been selfish in our laundry franchise in the world, consumer habits. In less than roles. All three of us know how to and offer our franchisees the a year, we have seen changes adapt to our roles. There is a part opportunity to invest in a in user behavior which may of our team that has been with business with a future, and one not have occurred if COVID-19 us from the very beginning who that is accessible. had not appeared. Companies we have extreme confidence in. must accelerate their GF: Where do you see your initiatives towards a digital GF: How has the coronavirus brand in five years? transformation. It is essential pandemic affected EG: We want to be the leading to adapt your business model the Jeff organization? international ecosystem of to this new reality offering EG: Due to our contactless day-to-day services by offering user convenience.
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