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Posts Tagged ‘franchise’
Tuesday, December 21st, 2010
By Kerry Pipes
Anyone who’s thinking about starting a new business is going to need to create a business plan. Why? Well banks and lenders require one for starters. But also because business plans are one of the crucial foundations for the beginnings of a business. And the franchising industry is no different.
Business plans are smart. They provide a road map to where you want to go and signposts for how you are going to get there. Writing a business plan causes you to consider challenges, risks, and opportunities that will be coming your way.
Because you are choosing to purchase a franchise, your business plan will be a little easier to create than someone who is starting a business from scratch. For example, many franchisors already have business plan templates – or elements of business plans, at the very least – that you can use and adapt. And you’ll be able to obtain much of the financial information that’s necessary from the Franchise Disclosure Document (FDD).
Basic business plans can be boiled down to five main sections. These are the main things lenders will be looking for.
First up, you’ll need a concise and informative introduction section. Here you want to describe the business and the kinds of products or services for sale. You should evaluate your market and territory and include that information here. Analyze your competition. Discuss the operational approach you will take and the challenges and risks you’ve identified with taking a business into this market.
Second, describe your management approach. Outline your management structure and philosophies. Detail all of the management positions/roles and talk about the individuals who will be serving in these positions. Explain what makes them unique and qualified to excel. Your management team is going to be critical to your franchise’s success.
The third section of your business plan should be the marketing plan. Here you want to explain how you’re going to reach customers and get them through the doors of your franchise business. Outline all of your marketing and advertising plans. Discuss the value of your products and services and why they offer a unique advantage to your company.
Next, include financial projections. Here is where you’ll want to include pro forma financial statements such as income statements, cash flow projections, and balance sheets. The idea is to use this data to point to how you project the business to do once it opens. Your projections should be very conservative and take into account as many variables as possible. Remember, projections are difficult to make – especially in a start-up business – so include as much information as possible in this section.
Finally, include a section that details your financing needs. Here you should provide, in detail, a complete analysis of your start-up costs. Discuss how much capital you will need (and where you plan to get it) to cover your operations from day one until you begin turning a profit. This section is important even if you are not borrowing money.
Creating a business plan forces you to think deeply about the business, analyze numerous options, and formally project a course of action. You’ll learn more and you’ll understand more about operating a business. And for that, you will be glad you did it.
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
Posted in franchise, The Dwyer Group, Uncategorized | Comments Off
Thursday, December 16th, 2010
By Kerry Pipes
Anyone seriously considering the purchase of a franchise will ultimately have to decide if a “service” franchise or a “retail” franchise is a better fit. It’s an important distinction in terms of both entry requirements and operational realities, and it’s a decision that can determine your ultimate effectiveness as a franchise operator.
First, a basic summary of some typical service franchise opportunities available today, here are just a few: trade and handyman (electricians, plumbers), lawn maintenance, landscape services, childcare, tutoring, education, business coaches accounting, bookkeeping real estate agents, travel agents, commercial, domestic cleaning, automotive-related services, computer-related services, and interior design/decorating.
With this is mind, consider that service franchises generally can offer more economical start up and operating costs and often require much less personnel for daily operation. A service franchise is frequently home-based and allows for – and often requires – a lot of mobility. Of course, there are pros and cons to this business model.
 We are leading the service industry. Find out why. Service franchise advantages
Service franchises typically allow you entry at a fraction of the cost of a retail franchise – often just a few thousand dollars of investment compared to six figures for many retail opportunities. Yet, the income potential is still attractive and can be considerable. So there’s the affordability factor and a lower upfront risk from day one.
There’s also a wide selection of opportunities and niches in the service franchise sector. And many of these businesses have a healthy and constant demand (plumbing will always need to be repaired, for example).
Service franchises are typically “skills based” and offer those with the ability, interest, and dedication to be active and “work with their hands” as they build their business.
Because many service franchises do not require a brick and mortar location for franchisee operations, overhead is typically much lower. It’s very easy to turn a quick and healthy cash flow when you work from a home-based office. And with very few employees, your staffing headaches can be minimal. And later on, the lack of a physical location makes it easier to take on additional territories at a minimal cost.
Additionally, working hours can be flexible – often by appointment only – so you’re not restricted by long retail hours. This can be a big plus for some lifestyles. But keep in mind, like most businesses, the more you work the more you earn.
Service franchise disadvantages
Because of the nature of the beast, service-oriented franchises may not offer the kind of customer and transaction volume you’d find at a retail franchise. That fact alone can limit your degree of profitability. Especially, if you are a one man operation, there are only so many appointments you can make in a day. And small operations can become seriously derailed in the case of personal illness or any major sickness.
Also, some service franchisees can limit the number of employees you have and can also restrict your territory. You’ll want to ask about this right off the bat. And, it’s not uncommon to have to function as the owner/operator as well as the employee (you wear all the hats). You may be providing electrical repairs for your customer by day while marketing your business and handling paperwork by night.
And some trades, such as plumbers and electricians, require technical knowledge, certification, and continuing education. That could occupy time that would otherwise be spent making customer calls.
You’ll certainly want to evaluate how these pros and cons measure up for you. For many who are active and like to be right in the middle of the action, a service franchise may be just right choice.
Anyone seriously considering the purchase of a franchise will ultimately have to decide if a “service” franchise or a “retail” franchise is a better fit. It’s an important distinction in terms of both entry requirements and operational realities, and it’s a decision that can determine your ultimate effectiveness as a franchise operator.
First, a basic summary of some typical service franchise opportunities available today, here are just a few: trade and handyman (electricians, plumbers), lawn maintenance, landscape services, childcare, tutoring, education, business coaches accounting, bookkeeping real estate agents, travel agents, commercial, domestic cleaning, automotive-related services, computer-related services, and interior design/decorating.
With this is mind, consider that service franchises generally can offer more economical start up and operating costs and often require much less personnel for daily operation. A service franchise is frequently home-based and allows for – and often requires – a lot of mobility. Of course, there are pros and cons to this business model.
Service franchise advantages
Service franchises typically allow you entry at a fraction of the cost of a retail franchise – often just a few thousand dollars of investment compared to six figures for many retail opportunities. Yet, the income potential is still attractive and can be considerable. So there’s the affordability factor and a lower upfront risk from day one.
There’s also a wide selection of opportunities and niches in the service franchise sector. And many of these businesses have a healthy and constant demand (plumbing will always need to be repaired, for example).
Service franchises are typically “skills based” and offer those with the ability, interest, and dedication to be active and “work with their hands” as they build their business.
Because many service franchises do not require a brick and mortar location for franchisee operations, overhead is typically much lower. It’s very easy to turn a quick and healthy cash flow when you work from a home-based office. And with very few employees, your staffing headaches can be minimal. And later on, the lack of a physical location makes it easier to take on additional territories at a minimal cost.
Additionally, working hours can be flexible – often by appointment only – so you’re not restricted by long retail hours. This can be a big plus for some lifestyles. But keep in mind, like most businesses, the more you work the more you earn.
Service franchise disadvantages
Because of the nature of the beast, service-oriented franchises may not offer the kind of customer and transaction volume you’d find at a retail franchise. That fact alone can limit your degree of profitability. Especially, if you are a one man operation, there are only so many appointments you can make in a day. And small operations can become seriously derailed in the case of personal illness or any major sickness.
Also, some service franchisees can limit the number of employees you have and can also restrict your territory. You’ll want to ask about this right off the bat. And, it’s not uncommon to have to function as the owner/operator as well as the employee (you wear all the hats). You may be providing electrical repairs for your customer by day while marketing your business and handling paperwork by night.
And some trades, such as plumbers and electricians, require technical knowledge, certification, and continuing education. That could occupy time that would otherwise be spent making customer calls.
You’ll certainly want to evaluate how these pros and cons measure up for you. For many who are active and like to be right in the middle of the action, a service franchise may be just right choice.
Tags: franchise, franchisee, home service, service
Posted in franchise, Uncategorized | Comments Off
Tuesday, December 14th, 2010
Franchise trade shows are a great source of information as you consider which brands to invest in. At these shows, which take place all over the country throughout the year, you can kick the tires, taste the food, and handle the products. Most important, perhaps, you can meet live representatives from dozens, or even hundreds of brands, depending on the size of the show.
 The Grounds Guys will have MANY trade shows for 2011! Don't miss out! Whether national, regional, or local, these shows offer a golden opportunity to ask questions – not only with franchise sales representatives, but often with franchisees as well. Most shows also provide educational seminars and sessions where you can meet franchise experts and specialists. You can also learn a lot from other entrepreneurs seeking the right brand for themselves and compare notes, impressions, hopes, and fears.
IFA Annual Convention – In terms of sheer size and scope, the biggest show is the International Franchise Association’s (IFA) annual convention. IFA shows generally offer sessions such as The A to Z’s of Buying a Franchise; How To Franchise Your Business; Financing Your Franchise; Opportunities in Franchising for Minorities & Women; and Franchising for Veterans 101. Other shows sponsored by the IFA include:
- International Franchise Expo (IFE) – Also endorsed by the U.S. Department of Commerce, this annual show is held in April in Washington, D.C.
- West Coast Franchise Expo – This annual October event draws more than 200 franchise brands from more than a dozen states in the West and offers a complete conference program.
- Franchise Expo South – Hundreds of franchisors attend to showcase their brands. This show draws both attendees and exhibitors from Latin America and the Caribbean.
- Franchise & Financing Expo – These are held at different times of the year across the country, sponsored by the IFA, the SBA, and local Chambers of Commerce. Sites include Arizona, Atlanta, Boston, Central Virginia, and North Texas. As the name indicates, these shows are an opportunity to learn about financing and meet lenders face to face.
- Franchise Opportunities Seminars for Women and Minorities – Conducted by the IFA’s Diversity Institute, these one-day events, held in cities across the country, seek to introduce franchising as an economic development tool. They are held in cooperation with Congressional representatives, mayors, local governments, the Urban League, the SBA, Small Business Development Centers, the Minority Business Development Agency, and other partners. They include franchisor exhibits and seminars on franchising fundamentals, legal aspects, financing, funding, and technical assistance. For a list of cities and dates visit the IFA’s website.
Further information on many of these events can be found at the IFA website and at www.mfvexpo.com, which produces most of these shows.
How to get the most from these shows
1. Before you attend – Go online and/or phone the sponsoring group to get a list of the franchise companies exhibiting. Choose the brands you want to learn about in advance, and research them online before the show. Don’t lock in on your selected brands to the exclusion of new opportunities that may catch your attention once you arrive.
2. At the show – Once inside, stop in at the booths of the brands you have chosen. Bring a list of your three to five most important questions and try to get some one-on-one time with the brand’s representatives. Take notes; lots happens at these shows, and you can review your notes – as well as franchisors’ printed and digital material home – when you get home.Get business cards from the people you meet, and leave your card or contact information with the brands you like. Try to get a sense of the culture of the brand from the reps you meet, and how they respond to your questions.
3. After the show – Review the materials you have collected, sort out your impressions, comparing your experience to your expectations. See who contacts you first–quick follow-up usually is an indicator of a franchise organization that has its act together–and of how they will treat you later if you sign with them.
If you are looking to franchise with The Dwyer Group, come and visit us at these trade shows for 2011:
The Grounds Guys:
Congress 2011
Mid-America Horticultural Trade Show
New England Grows
CanWest Horticultural Show
Nursery/Landscape Expo
GIE + EXPO
SIMA 14th Annual Snow & Ice Symposium
Aire Serv:
Comfortech
Glass Doctor:
GlassBuild America
NACE
Mr. Appliance:
ASTI
Mr. Electric:
Electric West
IEC National Convention
Mr. Rooter:
Pumper & Cleaner Environmental Expo International
(We will attend more, but these are shows we have booked at the moment.)
Visit LeadingTheServiceIndustry.com for more information on trade shows.
Tags: Aire Serv franchise, franchise, franchisee, Glass Doctor franchise, Mr. Appliance franchise, Mr. Electric franchise, Mr. Rooter Franchise, new franchise owners, Rainbow International Franchise, The Dwyer Group, The Grounds Guys franchise
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Thursday, December 9th, 2010
For all of you current franchisees, take this lesson to heart! These social media tutorials are for you! We want to help you all step up with the times in social media and see its benefits reflected in your customers’ happiness and satisfaction. So, without further ado, here is another tutorial on how to fancy up your Facebook!
 How can you put this social media tool to use? By Mari Smith
If you build a Facebook Page, will fans come? This is the great hope for many businesses. However, fans do not magically appear from the Facebook mist.
The Big Myth
There’s a great myth that once you create a Facebook fan page for your business, the first thing you should do to get fans is invite ALL your friends from your personal profile using the “Suggest to Friends” feature.
Unfortunately, this strategy may not be that effective and can, in fact, often backfire. I have seen many industry gurus complain that when they decline a fan page request; it’s frustrating to continue to be asked again and again.
There are several reasons not to use the “Suggest to Friends” feature:
- Facebook users can only like up to 500 pages and may wish to be selective. (Though I have seen it’s possible to go over this limit).
- Fan page suggestions may often build up, unnoticed. (At last count, I have 593 overlooked fan page suggestions and am already a fan of 500!)
- To aggressively pursue all your friends to join your fan page – for no apparent incentive – is counterintuitive to the nature of social media.
So, the good news is there are many ways to promote your fan page and proactively increase your fan base without bugging all your current Facebook friends, and also by thinking wider than just Facebook.
Here are 21 ways to get more fans for your Facebook fan page:
#1: Embed Widgets on Your Website
Select from a number of the new Facebook Social Plugins and place them on your website and blog. The Fan Box widget is now the Like Box and it works well to display your current fan page stream and a selection of fans - see screenshot below with Whole Foods Market Facebook Like Box. I would recommend adding a title above the box encouraging visitors to your site/blog to click the “Like” button (which makes them a Facebook fan).
You might also consider the Live Stream widget for more advanced uses, particularly on an FBML custom tab of your fan page itself. The Live Stream widget allows Facebook users to add their comments to a live event, for example, and that activity pushes out into their stream.
#2: Invite Your E-mail and E-zine Subscribers
Assuming you have an opt-in e-mail list, definitely send out an invitation to your subscribers via e-mail (several times, over time) letting them know about your fan page and encouraging them to join. Ideally, provide them with a description of the page and an incentive to join.
Be sure to have the Facebook logo/badge appear in your HTML newsletters. Instead of the usual “Join our Fan Page,” say something creative like “Write on our Facebook wall,” or “Join our Facebook community,” or “Come add your photo to our Facebook group” (where “group” is actually your fan page). Users have to be a fan in order to interact with your fan page in this way.
#3: Add to Your Email Signature Block
Instead of promoting your Facebook personal profile (if you do), include a link to your fan page in every email you send out. If you use web-based email, check out the Wisestamp signature addon.
#4: Make a Compelling Welcome Video
Create an attractive landing tab (canvas page) with a video that explains exactly a) what your fan page is about, b) who it’s for and c) why they should become members. The result: you’ll increase your conversion rate from visitors to fans. One ofmy favorite fan page welcome videos is by Steve Spangler, the Science Guy! After watching his video, you can’t help but want to join!
(By the way, with the new Facebook changes, if your custom welcome tab and video talk about clicking the “Become A Fan” button, you may want to change the wording to “click the Like button” now).
#5: Use Facebook Apps
I recently tested a new live video-streaming app called Vpype. The app adds a tab to your fan page called “Shows” and when you broadcast as your fan page, everyone can view by default. (You can also broadcast as your personal profile and selectively invite friends/friend lists). I wrote up a review of this app here. By announcing via Twitter, your personal Facebook profile, your blog and your email list,you can broadcast regular live Internet TV shows from your fan page and create much buzz.
Another example of app integration is Target’s “Bullseye Gives” campaign. Target had their fans vote on which of ten charities they most wanted to see the company donate to. By voting, a post goes out onto your Facebook wall and into the News Feeds of all your friends, thus providing Target with valuable exposure. (For custom apps, see companies like Buddy Media, FanAppz, Wildfire Apps, Involver,Virtue, Context Optional.) [UPDATE: Thank you to Context Optional, the creators ofTarget’s “Bullseye Gives” campaign!]
#6: Integrate the Facebook Comment Feature
My favorite example of this is the t-shirt company Threadless. On their landing tab (canvas page), you can view and purchase t-shirts as well as Like and comment on any item and choose to have that comment posted to your Facebook profile, as shown in this screenshot:
Threadless actually has their landing tab set up so visitors don’t have to become a fan to purchase/comment/interact. Yet they have organically built well over 100,000 fans.
As users comment on items, that activity is pushed out into their stream (profile wall and their friends’ News Feeds), which creates valuable viral visibility for your fan page.
For further information on adding the comment box to your FBML page/app, see thesepages.
#7: Get Fans to Tag Photos
If you host live events, be sure to take plenty of photos (or even hire a professional photographer), load the photos to your fan page and encourage fans to tag themselves. This, again, pushes out into their wall and friends’ News Feeds, providing valuable (free!) exposure. And, a picture says a thousand words – we notice the thumbnails in our feed more than text. (Props to Nick O’Neil for this tip.)
#8: Load Videos and Embed on Your Site
Facebook’s Video feature is extremely powerful. You can load video content to your Facebook fan page, then take the source code and embed on your blog/website. There is a “Become a Fan” button right in the video itself. For an excellent tutorial, see Nick O’Neil’s post: How To Get Thousands of Facebook Fans With a Single Video.
[UPDATE: Since Facebook changed the Become a Fan button to the Like button,embedded Facebook videos now display a white watermark hotlink of the Facebook name in the upper left corner of the video player - see first screenshot below. This is a clickable link that goes to the original video page on your fan page. If the visitor to your site clicks through to Facebook from your video, and they are logged into Facebook at the time, they will see a Like button at the top left corner of the video player - see second screenshot below.]
#9: Place Facebook Ads
Even with a nominal weekly/monthly budget, you should be able to boost your fan count using Facebook’s own social ad feature. It’s the most targeted traffic your money can buy. To buy an ad, scroll to the foot of any page inside Facebook and click the link at the very bottom that says “Advertising.” From there, you can walk through the wizard and get an excellent sense of how many Facebook users are in your exacttarget market.
Then, when you advertise your fan page, Facebook users can become a fan (click the Like button) right from the ad as shown in the screenshot below. Additionally, Facebook displays several of your friends who have already liked you, thus creating social proof.
My book with Chris Treadaway, Facebook Marketing: An Hour a Day (Sybex) contains comprehensive instructions on maximizing your marketing through Facebook social ads.
#10: Run a Contest
This is somewhat of a gray area because Facebook changed theirPromotional Guidelines last year. Essentially, you need prior written permission from Facebook and need to be spending a significant amount on ads per month. However, you CAN require Facebook users to become a fan of your fan page in order to enter a contest, sweepstakes, drawing or competition. See these two postsfor further explanation. PLUS, good news: you CAN run contests and sweepstakes with the use of the apps created by Wildfire App.
#11: Link to Twitter
Link your Twitter account to your Facebook fan page and automatically post your Facebook content to Twitter. You can edit what gets posted, choosing from Status Updates, Photos, Links, Notes and Events.
You have 420 characters on the Facebook publisher and 140 on Twitter. In the tweet that goes out, Facebook truncates your post past a certain character count and inserts a bit.ly link back to your fan page. To track click-through stats on that link, just paste the bit.ly link that Facebook created for you in your browser’s address bar and add a “+” sign to the end. This works for any bit.ly link!
I also recommend you promote your Facebook fan page on your Twitter background and possibly in your Twitter bio/URL field too.
#12: Get Fans to Join Via SMS
Your fans can join your fan page via text message! You’ll need to get your first 25 fans and secure your username. Then, to join your fan page, Facebook users just send a text message to 32665 (FBOOK) with the words “fan yourusername” OR “like yourusername” (without the quotes).
This feature is ideal when you’re addressing a live audience, say. Have everyone pull out their mobile phones and join your fan page on the spot! This would also work well for radio or TV. (Note that this only works for Facebook users with a verified mobile device in his or her account.)
#13: Use Print Media
Look at every piece of print media you use in your business. Your Facebook fan page (as well as Twitter and any other social sites you’re active on), should be clearly displayed. Put your Facebook fan page link (and the logo) on your business cards, letterhead, brochure, print newsletter, magazine ads, products, etc.
#14: Display at Your Store/Business
If your business is run from physical premises, put a placard on the front deskletting your customers know you’re on Facebook. Ideally, you have a simple, memorable username. Incentivize customers to join right away via their mobile device and show you/your staff the confirmation for some kind of instant reward!
You might give out physical coupons promoting your fan page. For restaurants, put the Facebook logo, your username and a call to action on your menus.
I was at a hotel in San Francisco last fall and they had a placard in the elevators promoting their presence on Facebook and Twitter. The sign was very noticeable because of those ubiquitous Facebook and Twitter logos/colors!
#15. Add a Link on Your Personal Profile
If you’d like to promote your fan page to your Facebook friends, just under your photo on your personal profile there is a section to write something about yourself. I call this the “mini bio” field and strongly suggest adding a link to your fan page like so:
Be sure to format the URL with http:// otherwise it will not be clickable with just the www’s. You have a limited amount of characters, so keep it succinct and leave out the www’s. You can put in hard line breaks though to make the content easier to read.
#16: Add a Badge/Button to Your Profile
Using an app like Profile HTML or Extended Info, you can create your own custom HTML, including a Facebook badge and/or graphic embedded, as shown in the screenshot below:
#17: Use the Share Button
The Share button is all over Facebook and is a very handy feature. It only works for sharing on your personal profile. So periodically go to your fan page, scroll toward the bottom left column and click the “Share+” button. Add a compelling comment along the lines of exciting news, recent changes, special incentives, etc., happening on your fan page and invite your friends to join if they haven’t already. I find the Share button far more effective than the Suggest to Friends approach. (And, if you’d like to Share content from the web on to your fan page vs. profile, I highly recommend using theHootlet bookmarklet tool at HootSuite.com).
#18: Use the @ Tag
As long as you’re a fan of your own fan page, you can “@ tag” it on your own personal profile wall. From time to time, you can let your friends know about something happening on your fan page by writing a personal status update that includes tagging your fan page with an @ tag. Simply start typing the “@” symbol and the first few letters of your fan page name (this works whether you have your username registered or not), and it will appear from a drop-down menu to select. This then makes it a nice, subtle hyperlink that your friends can choose to click on.
#19: Autograph Posts on Other Walls
A subtle way to gain more visibility for your fan page is to add an @ tag for your fan page when writing on your friends’ walls as a way to sign off.
I would use this one sparingly and, again, monitor the response from your friends. I have never been a fan of adding a signature block on Facebook wall posts because our name and profile picture thumbnail are always hyperlinked right back to our profile anyway. But the simple @ tag could be effective.
#20: Autograph Other Fan Pages
As with adding your fan page @ tag to posts you make on your friends’ walls, you could equally use the same technique when posting on other fan pages. Thisneeds to be used with discretion and I would advise against doing this on any potentially competing fan page!
#21: Maybe Use “Suggest To Friends”
I won’t rule this one out completely as it does depend on how many friends you have, your relationship with your friends, how often you suggest fan pages/friends to your friends, etc (see ‘The Big Myth’ above). But I do recommend monitoring the response to this technique – perhaps simply by asking for feedback in your status update.
Tags: franchise, franchisee, Marketing, PR, public relations
Posted in Marketing, Uncategorized | Comments Off
Friday, December 3rd, 2010
The magic of the holidays can often be found in the gifts to others.
Mr. Appliance® of Wilmington, along with Mr. Rooter® of Brunswick County, Mr. Electric® of Brunswick & New Hanover Counties and Glass Doctor® of Coastal Carolina are spreading the joy this holiday season by giving back to support disabled veterans.
Until December 25, these four companies will donated $5 from every service job to Step Up For Soldiers, a non-profit organization dedicated to helping disabled veterans and their families.
“People who have served our country gave everything to defend us,” said Matt Sarkela, owner of Mr. Appliance of Wilmington. “Through our donations to Step Up For Soldiers, we can make sure that soldiers are taken care of so their sacrifices don’t go unnoticed.”
Mr. Appliance, Mr. Rooter, Mr. Electric and Glass Doctor offer services for home needs, including appliance repair and maintenance, plumbing, electrical services and glass installation/replacement.
“Many heroes come home missing an arm or a leg,” Sarkela said. “Each donation we collect during the month of December is a small step to help them resume their lives and continue to be heroes everyday.”
Mr. Appliance of Wilmington serves Brunswick and New Hanover counties.
For more information, visit the Step Up for Soldiers website at http://www.stepupforsoldiers.org.
Tags: franchise, franchisee, Mr. Appliance, service, The Dwyer Group
Posted in Mr. Appliance, The Dwyer Group | Comments Off
Tuesday, November 30th, 2010
Youth in franchising? Millennials at the helm? Can younger people with relatively little business experience (or money) learn to manage a successful franchise operation?
A combination of several factors says yes – out of necessity for both prospective franchisees looking to make a living in a tough economy, and for franchisors seeking to expand their system in an era of tight credit. This confluence of economics and demographics has led to a rise in the numbers of younger people signing on as franchisees.
First, the demographics of youth. Generation X (born about 1965 to 1976) are now about 35 to 45 years old, hardly qualifying them as “youth.” So let’s focus on the next group, Generation Y, also known as the Millennial Generation (born about 1977 to 1990). As of 2010, this group ranged in age from about 20 to 35 years old. Millennials also are a big group, dwarfing Gen X and about the same size (70-plus million) as the post-Second World War Baby Boomer generation (born 1946 to 1964).
 Age doesn't factor into changing the world. Millennials account for more than 25 percent of the adult population in the U.S. That number is growing as the oldest of the Baby Boomers are beginning to retire, or at least look at it seriously. That’s a scary prospect for franchisors, who are working to fill that gap by developing recruitment and training programs aimed at the Gen Yers/Millennials.
For many in this group, whose tail end is just graduating college or have recently done so, the job market in 2010 is dismal. Just as they come of age and look to begin their working careers, unemployment is at record highs and large companies are laying off employees by the tens of thousands. With employment prospects dimmer than in generations, Millennials are forced to seek alternatives to traditional corporate careers.
Many Gen Yers choose to attend graduate school to bolster their credentials in the hope that the employment market will improve by the time they’re done. Others are eager to get started in business; they do the math and realize that the price of graduate school and the price of becoming a franchisee are not that different – and that franchising pays a lot better than grad school, important when you’re facing the prospect of paying off undergraduate student loans.
Of course most college grads and twenty-somethings don’t have the financial resources for a franchise fee, opening costs, and surviving the first crucial years. Nor do they have the business experience or the people and life management skills required to succeed in business – which is one of the reasons many will choose franchising over starting out in business for themselves. What they do have in spades, however, are energy, enthusiasm, an eagerness to learn, fresh ideas, and perhaps most important, parents and relatives willing to finance their entry into a franchised business.
Some of these parents are the same Boomers who are preparing to retire. Those who are franchisees might want to turn the business over to their offspring, and can offer training, support, and mentorship as their children learn the business. Others are seeking to give their children a good start in business and realize that the franchise model provides that training and support, and that mentoring can come from experienced franchisees within the system. And others, whose retirement savings have been severely reduced by the Great Recession, must not only work longer (which means fewer opportunities for younger people to advance), they also, suddenly and unexpectedly, must find ways to make more money for their Golden Years. Investing in a franchise through their children is one way to do that – especially in a time of reduced confidence in the stock market.
Veterans returning from Iraq and Afghanistan are another youthful segment ripe for franchising opportunities. They are used to following a system, and many junior officers returning to civilian life make ideal candidates and future leaders.
These youthful franchisees appear to have much going for them, and franchisors report their success rate is about on par with older first-time franchisees. Some assets youthfulness has going for it in franchising are a willingness to listen and learn; energy and passion; the ability to work long hours to build their business; fewer preconceived ideas about business than older people (i.e., greater willingness to follow a system); and an entrepreneurial spirit that has been trained to collaborate more than previous generations. Many have started businesses in high school and college, and are better prepared to manage than franchisors might expect. Some have done so with friends, and team up with them as franchisees to share the financial and management burdens of operating a franchise.
Younger people also have grown up with technology, an increasingly important part of managing and marketing a business today. Their affinity for computers is a given, and social media is a part of their everyday lives. And for franchise concepts or brands that employ teenagers (fast food, especially), their closeness in age can help bridge the “generation gaps” so many older franchisees struggle to overcome in their hiring and retention practices.
On the down side, youth is a time of exploration, and franchise agreements run five years or more. Can young people commit for that time when their lives are still taking shape? What if they fall in love with someone across the country, or even in another country? What if they turn out to be incapable of managing people, doing the books, or marketing? While this can occur with older franchisees, at least those prospects have more of a track record, and have done their exploring, and are looking to settle down and settle in.
Young people most likely to succeed as franchisees will enlist experienced, older advisors – whether it’s their parents and family, other franchisees, or by hiring or outsourcing or partnering with professionals who can make up for their youth and inexperience. After all, while enthusiasm can go a long way, it’s nice to know where you’re going. Enlisting the aid and support of people who have already “been there, done that” can help youthful franchisees not only determine where they’re going, but provide them with the operational, financial, and management tools and skills they need to get there.
Tags: franchise, franchisee, new franchise owners, The Dwyer Group
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Tuesday, November 23rd, 2010
The turkey’s stuffed, table’s set and the TV’s on…but what about those Thanksgiving preparation and cleanup tips that aren’t on your to-do list?
To keep the oven, garbage disposal and kitchen sink drain in good working condition this holiday season, cooks need to take some precautions before and after the Thanksgiving feast.
“Oven problems usually go unnoticed until the turkey is already inside,” said Doug Rogers, president of Mr. Appliance® Corp. “Give yourself enough time before the big day to test your oven and if needed, call an appliance repair company for help. A few minutes spent checking your kitchen appliances could save your holiday season.”
 Don't let this be YOUR Thanksgiving dinner... A proper working oven is something you and your tableful of hungry relatives will be thankful for. This year, add these oven tips from Mr. Appliance to your Thanksgiving to-do list in preparation for the festive feast:
- Avoid running the self-cleaning cycle before a big holiday dinner.
- Remove caked on food from the gas vents or the heating element.
- To test baking efficiency, buy a white cake mix. If cake is dry or undercooked, oven temperature isn’t set correctly.
- Replace gaskets at the first sign of a leak or if moisture appears on outside of oven.
- Use oven light to save cooking time and energy.
For those who aren’t do-it-yourselfers, appliance repair professionals can repair faulty gaskets and replace oven lights.
As for the cleanup process, there are five tips many don’t think about until it’s too late. Mr. Rooter Plumbing has this advice:
- Wipe off greasy dishes before washing.
- Avoid pouring grease down the drain.
- Throw scraps in trash or compost pile.
- Don’t overload the garbage disposal.
- Don’t use dishwasher if disposal isn’t working.
When cooks combine turkey bones and potato peels with grease, they’ve got the ideal recipe for a backed-up kitchen sink. It’s a mixture that keeps plumbers busy over the holiday, unclogging stuffing-stuffed drains.
“It’s important to know what should and should not be put down the drain before the Thanksgiving frenzy,” said Mary Kennedy Thompson, president of Mr. Rooter Corporation. “People also don’t realize how much food they put down their garbage disposal until the drain is backed up.”
About Mr. Appliance®:
Mr. Appliance is North America’s leading appliance repair franchise system. Established in 1996, its franchises provide full-service residential and light commercial appliance repair. Mr. Appliance has more than 150 locations throughout the United States and Canada and is consistently ranked among the top home service franchises by Entrepreneur magazine and other industry experts. Mr. Appliance is a subsidiary of The Dwyer Group, Inc. For more information on opening your own Mr. Appliance franchise, visit www.mrappliancefranchise.com.
About Mr. Rooter®:
Established in 1970, Mr. Rooter is an all-franchised, full-service plumbing and drain cleaning company with approximately 300 franchises worldwide. Recognized by Entrepreneur magazine among its “Franchise 500” and Franchise Times Top 200, Mr. Rooter franchisees provide services to both residential and commercial customers. Mr. Rooter began franchising in 1974 and is a subsidiary of The Dwyer Group, Inc. For more information on opening your own Mr. Rooter franchise, please visit our Web site at www.mrrooterfranchise.com.
Tags: franchise, Mr. Appliance, Mr. Rooter
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Friday, November 5th, 2010
The Glass Doctor of North Texas and its vendors have donated more than $2,000 to the Susan G. Komen 3-Day for the Cure. The event will be Nov. 5-7 at the Collin Creek Mall in Plano.
Glass Doctor of North Texas is supporting the “Tough Ta-Tas” team, which will walk 60 miles over the course of the three-day event.
“To walk 60 miles in three days sounds hard and painful, we’ll get blisters on our feet and sleep in a tent after walking each day,” said Cheryl Patterson, wife of Larry Patterson, president of Glass Doctor of North Texas. “I’ve heard stories of women who have struggled and suffered to fight breast cancer and still lose their lives. Compared to that walking 60 miles will be an easy thing for me to do to help find a cure.”
Together Cheryl and her 13 teammates have raised almost $36,000 toward their $50,000 goal with about a week left before the event. Nine vendors have helped Glass Doctor of North Texas support the Tough Ta-Tas: Dallas Flat Glass, PGW Auto Glass, Sika, Daines Insurance, Agalite Bath Enclosures, Waldman Brothers Insurance, AI Media Group, Pilkington and M3 Glass.
“I’m so proud of Cheryl for making the commitment to spend three days walking for this great cause,” Larry Patterson said. “Glass Doctor of North Texas and all of our vendors are glad to support the Susan G. Komen 3-day for the Cure in its battle to find a cure and raise awareness of breast cancer.”
To donate and support the Tough Ta-tas, visit their official website and donate securely through Susan G. Komen for the Cure.
Based in Carrollton, Glass Doctor of North Texas serves Collin, Dallas, Denton and Tarrant Counties. For more information or to schedule service call (972) 271-6800.
Tags: franchise, franchisee, Glass Doctor, Glass Doctor franchise, PR, public relations, The Dwyer Group
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Wednesday, November 3rd, 2010
Thanks to a partnership with the Green Savings Company, The Ronald McDonald House in Fort Lauderdale will receive more than 100 energy-efficient lighting kits, which are being installed over the next few weeks.
The Green Savings Company initiated the partnership as a way to reach out to the local community and also promote its T5 retrofit lighting kit, a light conversion system designed to save energy and reduce costs.
“This is definitely something that we really needed,” said Soraya Moya, executive director of the Ronald McDonald House Charities of South Florida. “We’re very grateful to them.”
The Ronald McDonald House in Fort Lauderdale is a residence for families with critically ill children staying in nearby hospitals. With more efficient and improved lightning, the facility can remove excess lamps and will count down on the number of light bulbs needed.
The new fixture kits can reduce costs up to 70 to 80 percent, according to Alex Vidal, marketing director for the Green Savings Company. The kits are the flagship product of the company, which opened in Fort Lauderdale two years ago.
“It’s an inexpensive way for them to go green and reduce their carbon foot print without having to spend a lot of money because it’s a cost efficient method,” Vidal said.
Another aspect of the partnership is Mr. Electric, which offered to install the kits. Mr. Electric removed T12 and T8 fluorescent light bulbs and replaced them with the T5 retrofit kits, which is one of the more energy efficient bulbs on the market.
And with a monthly electric bill of roughly $2,100, the potential savings for the Ronald McDonald House could not come at a better time.
“Everyone is hurting with the economy and we’re very appreciative of our relationship with them,” Moya said. “It’s less of a burden on us and the families that stay here for one, two or three months.”
The potential savings could also generate more funding to improve programs as well as purchase needed furniture and other items.
“The more we save, the better we’ll be able to operate and branch out,” Moya said.
Tags: franchise, franchisee, Mr. Electric, PR, public relations, The Dwyer Group
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Tuesday, November 2nd, 2010
By: Leila Roche of the Suffolk News Herald
As the mercury in thermometers is dropping, most people are eager to pull out fall and winter decorations and pull on their boots and gloves.
But homeowners should take the time to ensure their homes and heating systems are just as ready for the change of season.
“You want to make sure your heating system isn’t going to go out at 2 a.m. on a 10-degree night when companies are swamped with calls and you have to wait 10-12 hours to get your heat back on,” said Vinie Copeland, president of Aire Serv of Suffolk franchise. “If you do preventative maintenance now, your chances of that or any other malfunction happening go down.”
Dominion Virginia Power recommends replacing or cleaning filters of forced air furnaces monthly, having your heating system inspected, inspecting your home’s ductwork to ensure no heated air is escaping and sealing up windows and doors with weather stripping or caulk.
“Air leaks are the first thing we look for,” Copeland said. “They can be at the windows, doors and access doors going into an attic. You need to make sure there’s a rubber sweep or something at the bottom of the door and that that your windows are properly sealed. Double pane windows are a good idea.”
If your home isn’t keeping heat like it should, Copeland also recommends taking a look at the insulation in your home. Once the walls are built in a home, it’s hard to do much about insulation, but take a look in your attic.
“Especially if you’ve been living there awhile, your insulation can get moved around while you were getting Christmas decorations or something,” Copeland said. “Either put it back, or put in thicker insulation. It can save homeowners a lot of money over the years.”
One of the most important checkups doesn’t just keep you warm, but it can keep you healthy, as well.
“The emissions from a heater with stress spots or cracks in the heat exchanger can contribute to high levels of carbon monoxide exposure,” Copeland said. “The air we breathe indoors can actually be more dangerous than the air outdoors, so it’s important to check any fuel-burning appliance or heating source to make sure it’s working properly annually.”
While death by carbon monoxide poisoning isn’t common, it can cause less fatal health effects such as headaches, dizziness, disorientation, nausea and fatigue.
Warning signs that you may have a potential carbon monoxide leak include a gas flame burning orange or yellow instead of blue, sooty stains on heating appliances or around heating registers or a noisy furnace.
Before you turn on the heater for the winter, Aire Serv recommends taking the following precautions:
Install a carbon monoxide detector outside the sleeping quarters on each floor of the home.
Keep generators in a well-ventilated area and away from the house.
Have the furnace and any heating equipment checked by a heating specialist. In addition to cleaning your system, checking refrigerant levels and adjusting your system as needed, your contractor should look for cracks or damage to the heat exchanger.
Remove any clutter around the furnace, particularly flammable items.
Check your furnace air filter monthly and replace as necessary. Air flow can be restricted if the filter is dirty.
Remember that your pets are as attracted to the warm fireplace and heater as you are, so make sure they can’t burn themselves or knock a heat source over.
Tags: Aire Serv, Aire Serv franchise, franchise, franchisee, HVAC franchise, HVAC franchise support, The Dwyer Group
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