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FranchisingFeatureSPortS & F ItNeSSS J U N E 2 0 1 5

FranchisingFeatureretAIL DECEMBER 2015

breaking into the retail market

understandingthe signiFicance oF signage

Massage green sPa cultivates strong corporate culture

Franchising USA

what’s new!

glass doctor HIgHLIgHTS ROUND-THE-CLOCK EMERgENCY REPAIR SERVICESWith the holiday season in full swing, Glass Doctor, a leading franchise that offers glass repair, replacement and services to the residential, automotive and commercial markets, is highlighting it’s emergency repair services to ensure that business life isn’t interrupted by an event resulting in broken glass windows or doors.

Glass Doctor provides round-the-clock fast emergency glass repair, offering both emergency board-up for the damaged site as well as pre-measuring services for quick glass replacement. In board-up situations,

Glass Doctor can not only board-up the site, but often replace the window before normal business hours.

The brand’s Advance Measurement system is a precautionary program in which Glass Doctor specialists create a diagram of a business and its glass needs. If any glass is damaged, retailers simply call Glass Doctor to report the number of the broken glass from the diagram. Glass Doctor will then match it against their in-stock options and, if in stock, replace the broken pane in a single visit, saving business owners time, money and preventing the need for an

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Gunsightly board-up. This program is also ideal for apartment managers to quickly service all of their locations.

The Advance Measurement system is Glass Doctor’s way of getting businesses back up and running in the quickest way possible – especially during this busy holiday season.

www.glassdoctor.com

Franchise prospects are lining up for a delicious bite of what River Street Sweets•Savannah’s Candy Kitchen is offering with its new franchising program.

River Street Sweets•Savannah’s Candy Kitchen is a marriage of two well-known and highly respected Southern candy brands based in Savannah, Georgia. Siblings Jennifer and Tim Strickland operate River Street Sweets, and just down the street, their father Stan Strickland operates Savannah’s Candy Kitchen. After having been in the candy business for more than 40 years and collectively operating more than a dozen locations, the family companies reunited today to offer a franchise opportunity that provides franchise owners and operators the ability to develop their own handmade candy and ice cream franchise business.

River Street Sweets•Savannah’s Candy Kitchen is screening a select group of outgoing and motivated individuals and teams with a strong work ethic and integrity to join the franchise network.

In October 2015, River Street Sweets•Savannah’s Candy Kitchen celebrated its first franchise location’s grand opening in the Savannah area. Franchise plans call for further development in Georgia, Texas, Louisiana, Tennessee and Alabama; across the Southeast in tourist locations in Florida, South Carolina, North Carolina; and north into Ohio and New York.

www.RiverStreetCandyFranchise.com

RiveR StReet SweetS•Savannah’S Candy kitcHen CREATES AN UNFORgETTABLE

FRANCHISE OPPORTUNITY

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RAZZLEDAZZLE Barbershop – a Miami-based old-fashioned barbershop business that creates an oasis where men receive pampering with an edge of sexiness – recently announced franchise expansion plans.

Immediate growth targets multiple locations across Miami, Southern and Central Florida, Chicago, New York City, Las Vegas, and other major urban markets across the U.S. RAZZLEDAZZLE is seeking both franchisees and area developers to fast-track growth.

“We’ve been perfecting the business model behind this fun, fresh concept for seven years now, and we’ve reached a point where RAZZLEDAZZLE’s potential is bursting at the seams,” said CEO and founder Elena Linares. “We’re excited to partner with like-minded entrepreneurs who are ready to shake up the industry with us.”

With five corporate locations in South Florida, RAZZLEDAZZLE Barbershop specializes in haircuts, hot lather shaves, and shoe shines and provides gentlemen with the ultimate experience in hair care and grooming services. A team of “Dazzlers” transports guests back into a different era, all while adding sexiness and swagger to a male spa-like experience. “Sugar” in the form of a shot of whiskey or vodka is served to clients 21 and over.

“Our one-of-a-kind brand and personalized services speak volumes about the impression we’re making in the salon and barbershop space,” Linares added. “We’re offering interested business owners the tools and support they’ll need to bring this dynamic concept to their own communities.”

www.razzledazzlebarbershop.com

razzledazzle PAMPERS WITH AN EDgE OF SExINESS

Store in store model inside a Walmart in suburban Atlanta, gA.

Sophisticated and Sexy Barbershop Concept Awarding Opportunities to Qualified Owner-

Operators Nationwide

FRANCHISINg USA AND

WEST COAST FRANCHISE

ExPO

Franchising USA recently attended The West Coast Franchise Expo which is the premier franchise event in the growing West Coast market.

It provides the perfect opportunity for hundreds of franchise concepts, representing every industry and virtually every investment level, to meet face-to-face with the region’s most qualified prospects and is Sponsored by the International Franchise Association.

We would like to thank all our new readers who subscribed to Franchising USA. It was great to see such enthusiasm for Franchising and to have the opportunity to speak to potential Franchisees about their goals and plans. This was also a great opportunity to get insight into what Potential Franchisees and Franchisors want to see in upcoming issues of Franchising USA.

So with 2016 just around the corner, Franchising USA will have some great articles from some of the top names in franchising covering subjects requested by you, our readers.

For more information on past articles and features go to www.franchisingusamagazine.com

Franchising USA

what’s new!square root LAUNCHES STORE AUDIT MOBILE APPSquare Root, an Austin-based Software-as-a-Service (SaaS) company that provides store relationship management solutions for multi-unit enterprises, announced the launch of its store audit mobile app, CoEFFICIENT®. The app comes on the heels of Square Root’s national survey on district managers, which revealed a lack of adequate tools aligned to the on-the-go nature of the job.

The app leverages mobile functionality and phone features to give district managers the ability to quickly and easily complete key in-store tasks directly on their phones, allowing for more efficient store visit documentation and action planning and ensuring more accurate reporting.

Among the app’s capabilities are

the ability to snap photos of issues in store, take hands-free notes using voice dictation and capture follow-up items. Information recorded on the app automatically syncs across all devices with the CoEFFICIENT® web application, delivering actionable insights to better align organizations, increase transparency, encourage collaboration, and improve store performance.

The launch of the CoEFFICIENT® mobile app marks the latest example of how Square Root is helping improve agility and empowering - decision making for multi-unit retail and auto enterprises.

For more information on

Square Root or CoEFFICIENT®, visit

www.square¬root.com.

great clips gIVES AMERICA A WAY TOTHANK VETERANS

On Veterans Day, Great Clips salons across the country showed their appreciation to military members by giving their customers a way to thank the men and women who have served their country.

Through the “You Can Thank a Veteran” promotion, veterans and active service members who came to Great Clips on Veterans Day received a free haircut or a card for a free haircut to redeem through Dec. 31, 2015, at any U.S. Great Clips location.

All customers who came in for a haircut at Great Clips on Veterans Day received a free haircut card that they could give to any active, inactive or retired military member of any branch, including the National Guard to use by the end of the year.

“Great Clips realizes there is no amount of gratitude we can show to the men and women who have served our country. Giving them a great haircut is a simple, yet meaningful, way to show appreciation for everything our veterans and service members have done for us,” says Great Clips CEO Rhoda Olsen, whose husband is a Vietnam veteran.

This is the third year that Great Clips, the world’s largest salon brand, has been running the “You Can Thank a Veteran” promotion. In the first two years, it provided nearly half a million haircuts for military members and veterans.

www.greatclips.com/promotions/veterans-day

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Franchising USA

7-eleven REFRESHES FRANCHISE WEBSITETO REFLECT EASE OF APPLICATION

7-Eleven has given its Franchise recruitment website a

facelift to better reflect the ease of applying for one its

store franchises. In fact, the company branded its franchise

process as “Franchisease”.

“We are emphasizing that it is easy for qualified candidates to apply for, own and grow their number of franchise stores in areas where we do business,” said Greg Franks, 7-Eleven vice president of franchise systems. “The website’s look is more modern and simplified. It’s easier to navigate and has cleaner lines, imagery and text.”

micro-winerY FRANCHISE UNCORKINg CULTURE IN URBAN AREAS NATIONWIDEWaters Edge Wineries, a dynamic micro-winery concept, is bringing the best of wine country to small urban and suburban communities nationwide with its specially designed franchise program.

Immediate expansion plans target metropolitan areas in states throughout the U.S., with current locations across California, Arizona, Ohio, Colorado and Oklahoma.

“We’ve combined the winemaking and wine bar experiences to break down the barriers to a historically exclusive lifestyle,” said President Ken Lineberger. “We’re eager to see how franchisees leverage our concept to create vibrant cultural hubs right where they are.”

The concept’s adaptable business model and state-of-the-art technology helps owner-operators “bring the winery to the people” without the hassle and costs associated with vineyard ownership, including grape growing and production.

Owners can satisfy the growing demand for quality wine by the bottle and by the glass as they offer bistro fare, custom labeling and bottling experiences, and all the ambiance of a traditional winery.

“With wine sales on the rise in the U.S., our hybrid concept is poised for significant growth,” said Angela Lineberger, Franchise Liaison. “We’re equipping our franchisees with the technology and expertise to create dynamic spaces where guests can really engage with the world of wine.”

The franchise has more than doubled in 2015, growing from five to 11 locations. Growth plans in 2016 call for an additional 10 to 15 locations with the right owner-operators.

www.watersedgewineries.com

But the re-branding team did more than just update the look, the department did months of research on what makes a site appealing, and analyzed where webpage visitors landed and lingered, as well as what competitors were doing online.

“More importantly, we wanted to be mobile device-friendly,” said Franks. “We serve people who are on the go, connected 24/7 and want content delivered to their fingertips, and this includes being mobile-device friendly.”

Franks said shortly after the new website was launched in late summer, the team saw the number of applications rise.

“We believe our new approach is paying off,” added Franks. “Visitors are staying longer on the pages and the bounce rate (exiting the site) has gone down.”

7-Eleven, Inc. continues to grow and expects to have a net of approximately 200 stores added to its U.S. store count this year.

www.franchise.7-eleven.com/franchise

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Franchising USA

Cover Stor y - mASSAGe GreeN SPA

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For massage Green Spa, having a robust corporate culture is the biggest key to success.

“I consider us as a bunch of health and wellness warriors,” CEO and founder Allie Mallad said during an interview from the company’s headquarters in Southfield, MI. “We have an incredible culture of a lot of people who believe in our company’s mission statement, which is basically to motivate as many people as we can to incorporate massage therapy and infrared sauna therapy into their lifestyles on a monthly basis.”

revolutionWith its main services of massage, infrared sauna and facials, Massage Green Spa is on the forefront of the health and

wellness revolution currently going on, Mallad said.

Founded in October of 2008, Massage Green Spa began franchising in February 2009, opening its first franchise store in Tallahassee, FL.

Currently, the company has 53 franchisees, and 13 area developers that represent over 100 stores opened by the end of this year, plus over 1,000 more stores currently under development.

The original Massage Green Spa location opened out of necessity to fill a vacancy in a shopping mall Mallad owns in Dearborn, MI. As an ex-college athlete who believes physical fitness relates to mental fitness, he was happy to fill the vacant store in his shopping mall with a massage center, but he wanted to open one with a twist.

“One day while I was jogging, I started to think about massage therapy and what if I made it a luxury that everyone could

Massage FranchiseCULTIVATES STRONg CORPORATE CULTURE afford,” he recalled. “So, I decided to open

an upscale massage therapy location in my own shopping center and I wanted to make it where the entire community could afford it and one thing led to another and it became a tremendous success.”

Looking for health and Wellness WarriorsThe CEO said he’s looking for people who are hard-working, laser focused and who have what he called “the proper attitude”, which he described as someone who believes in health and wellness, wants to fulfill their own destiny and someone who is willing to embrace and protect the brand.

Great franchisees are self-motivated to make a difference in someone else’s life, he added, and Massage Green Spa franchisees should believe in the importance of educating people about the benefits of massage therapy in their lives.

A former franchisee for many different national brands, Mallad knows the importance of comprehensive training and

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support and Massage Green Spa provides both.

After talking to executive vice president of franchising sales, Jim Belanger, and coming to a mutual agreement that they’re a good fit for the franchise, potential franchisees are then taken through the franchising process and start looking for a suitable location, which Massage Green Spa assists them in doing.

Franchisees are trained via a two-week, intensive on-the-job training program that covers all aspects of running a business. The franchise also provides them with grand opening support in their first week, detailed manuals on every aspect of the business, plus continuous follow-up training programs, workshops and national conference calls that keep franchisees updated about policies, procedures and competitive information, as well as any industry updates.

Nationwide AvailabilityWhile the franchise is approaching 40 stores in its home state of Michigan, it also has stores in California (where it also has a headquarters in Riverside) Illinois, Connecticut, Texas, Florida, Colorado, Ohio, Virginia, New York, New Jersey, Nevada, Arizona, Wisconsin and Massachusetts.

Registered in all 50 states, the franchise has territories available right across the country.

the massage Green Spa DifferenceWhat Mallad prides himself on the most is the great corporate culture evident at Massage Green Spa, as it is full of people who believe in the company’s vision. The company also offers a career path to massage therapists. Since almost half of all Massage Green Spa stores are corporate, the company can easily give massage therapists a chance to become owners once they no longer want to perform massages by promoting from within the Massage Green Family.

“They’re like athletes, they can only go so long, but many massage therapists are in love with the industry,” he said. “They have a heart to give back and help people,

so when they can no longer give massage therapy sessions, they have an opportunity to stay within the industry and stay within the company because we own so many stores and have so many opportunities to be promoted within our company.”

The value they offer consumers also sets the company apart, he noted, saying Massage Green Spa is the only massage center to offer an introductory $39.95 full body massage with no commitment to a 12-month contract.

Massage Green Spa also offers infrared sauna therapy, something not many other places can offer yet.

“We strongly feel that it is a health and wellness benefit that will take this country by storm,” Mallad said of their infrared

sauna, which uses infrared heaters and light rather than steam like traditional saunas.

Massage Green Spa is always exploring new programs they can offer for health and wellness, one of the reasons the company has been named by Forbes as the up and coming massage therapy company of the future, and why sports teams like the Detroit Tigers, Detroit Red Wings, Detroit Lions and University of Michigan Athletics use Massage Green Spa as their official massage therapists.

With such a strong corporate culture, Massage Green Spa should have no problem attracting the health and wellness warriors it seeks.

www.massagegreenspa.com

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Massage Franchise

“We strongly feel that it is a health and wellness benefit that will take this country by storm.”

- Allie Mallad, CEO and founder

retaiLFranchising

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Feature by G ina G i l l F ranch is ing USA

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retaiLFranchising

Feature

“the retAIL INDUStry CoverS A Lot oF

GroUND AND It DomINAteS the reNtAL

SPACe IN ALL AmerICAN mALLS. ShoPPING

For ProDUCtS IS PArt oF oUr everyDAy

LIveS AND the ProFIt IS evIDeNt.”

December is definitely the season for shopping. Whether one celebrates Christmas or not, the malls are bustling, the streets are filled with cheer and people are prepared to spend money.

The national retail federation states that the holiday season can represent 20 to 40 per cent of the business’ annual sales, though this can create a lot of stress and possibly long hours for franchisees. However, sometimes through experience and support, an owner can allow the business to run itself.

The retail industry is hit hard during the holiday season, finding peak business to be in the fourth quarter of the year

but retail franchises can bring success throughout the year, especially with a well-recognized name brand. Retail offers an established and loyal customer base, with set processes, expert marketing and guaranteed success.

Of course, retail can cover a variety of different areas and venues, including clothing, pet supplies, beauty supplies, household goods and many other products. Some retail industries cross over and include many different product lines within one location.

ClothingIn 2010, households spent on average $1700 on apparel, footwear and related products and services, which is about 3.5 per cent of the average annual expenditures.

People are always willing to remain in style and fashion forward, plus families have growing children who have growing needs. Customers like brand names,

great deals and recognize clothing as a necessity, as well as a means to express individual taste. In fact, shopping has become a habit, more so than an errand in our society.

Clothing stores have managed to create an online presence, by offering their products from the comfort of home. This may take a hit on the actual physical franchise location, but some industries link online sales directly to the store, allowing for an increase in profits.

Most clothing stores have a huge marketing agenda, which will alleviate some of the stress and responsibility of the franchisee. Not only will marketing be covered, but advertisement is usually done by professionals and guarantees to create customers., without having to do any of the work.

Apparel stores can range from low end budget clothing to high fashion, depending on your experience and passion; those interested in clothing have a wide variety of options when it comes to franchising within this area.

Apparel stores used to be very specific and appeal to one customer base, now a lot of locations carry accessories, jewelry and options for the whole family. This creates a one-stop shopping area for everyone and drives sales.

Beauty ProductsMake up, shampoo, face wash and deodorant used to be staples of the pharmacy. Of course, these products can still be purchased in department stores but beauty products are now creating their own industry. While walking through the mall, a customer will pass numerous beauty stores that specialize in makeup, soap, hair products or acquire all the products under one roof.

In fact, the global beauty market is astoundingly huge and the United States is number one in cosmetic spending and spent $38 billion in 2007 alone, while the revenue of the U.S. cosmetic industry is estimated to amount to about 62.46 billion dollars in 2016.

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Franchising USA

Feature by G ina G i l l F ranch is ing USA

What used to be a mainly female focused industry is now an important purchase for both men and women alike, creating a broader population and customer base. Shoppers want their beauty products separate and are interested in high-end products. Customers feel a sense of professionalism and expertise when their beauty products are the main focus of the business.

This type of retail franchise is definitely increasing in profit every year and gaining more momentum and popularity. It can definitely be enjoyable, especially for those with a background in cosmetics or who have a passion for the field but are not interested in the service industry of beauty products.

home furnishings Another distinct area that specializes in retail is home furnishing outlets and franchises. In 2012, the home furnishing industry in the States generated close to 80 billion US dollars from furniture, lighting and décor sales.

Another industry that has gained more popularity over the years and customers are consistently buying to keep up with the trends. The pressure to have a well-decorated house has increased, as people are remaining within their household for dinner parties, movie nights, stay-cations and they are more willing to invest in their surroundings than ever before.

Home furnishings range from cheap to extremely expensive, from plastic tables to high end hand crafted wood, from apartment size furniture to oversized sectionals. There is a huge variety of product selection.

A lot of consumers are searching online venues before they step foot in the store, which is decreasing the traffic in this area but most costumers are willing to spend money once they enter the doors of a furniture outlet.

Franchisees interested in this retail industry would benefit from having some background in sales, with a lot of employees working on commission who would benefit from a leader with a

CUStomerS FeeL A SeNSe oF

ProFeSSIoNALISm AND exPertISe WheN

theIr BeAUty ProDUCtS Are the mAIN

FoCUS oF the BUSINeSS.”

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background in the area. Some furnishing franchises come with a strong marketing strategy, while others let that responsibility rest on the shoulders of the owner.

That being said, the furnishing industry sells products with well-establish branding that have a committed customer base and allow some immediate credibility.

hard Improvement Franchises Hardware stores used to consist of paint, tools and nails but nowadays they are huge department stores that provide services and products for every area of the home. From doors to hardwood floors, not only are hardware stores providing all the products, machinery and tools you need

for home improvement, but they will install everything too.

Though a lot of home renovation usually requires professionals, overall that industry can bring in a lot of money. In 2012, U.S. improvement and repair expenditure amounted to approximately 284 billion U.S. dollars, while in 2014, home improvement stores brought in close to $144 billion.

A lot of people are taking on their own home building projects, while franchises are working with contractors and making a portion of commission.

The Home Improvement Market is growing and reaching a much wider

Franchising USA

Look out for our next special feature:

senior care FrancHising

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customer base. The Home Improvement Research Institute stated that the home improvement products market would grow 5.9 per cent by 2014 and it has steadily increased since 2011.

The retail industry covers a lot of ground and it dominates the rental space in all American malls. Shopping for products is part of our everyday lives and the profit is evident. It would be beneficial for franchisees to have some experience in retail or understanding of how the business format works to help encourage sales,s but franchisors can provide a lot of experience, support and understanding. It is a market that comes with a great marketing plan, an association of brand names and a usual customer base.

ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.

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Franchising USA

into the retail Market

Franchising USA

In a world where trends are picked up and forgotten on a weekly basis, keeping up with the retail market can be tough for any business owner, especially an aspiring entrepreneur. Breaking into the market and then maintaining profitability requires more than just an innovative idea. Since the 1980s, the foundations of business, such as banks, investors, retail vendors, and the customers themselves, have been cautious

to dish out support to new and innovative ideas. This presents a dilemma for retail entrepreneurs – how does one establish a successful business without losing their individualism?

The answer lies within franchising.

the StoryFor the past 30 years, my career has been engulfed in franchising, and during my time I’ve experienced firsthand the struggles of wanting to try something new and innovative. Being a young New York City clothing designer and contractor as well as a restaurateur in the 1980s, I moved to Florida with the dream of developing myself as an automotive

stereo retailer and installer. However, I soon met with reality as I struggled with getting loans from the banks, credibility with landlords, and even support from my colleagues. I was in a new state and too fresh, too young, and too inexperienced to get the support I needed. My teenage and young adult years were spent in business instead of universities, and no one wanted to support my idea to sell and install aftermarket stereos. Essentially, I had to start all over.

This is when I discovered franchising. At the time, my cousins had recently opened their very own automotive service and repair franchise. They told me a story similar to mine – they couldn’t legitimize

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Charles J. Bonfiglio, President & CEO, Tint World®

the true story of

breaking

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Franchising USA

into the retail Market

their business concept to the investors, property managers and the banks that could actualize their ideas. Instead of struggling, waiting or giving up, they invested in something that was nationally known, with internal financing and the power to attract the vendors and customers who would support their growth. I followed suit, meeting the franchise development team of the same automotive service and repair company as my cousins. The moment I got financial approval to open my first franchise, my story changed.

The same bank and landlord I once had no chance of winning over suddenly took interest in me. I got the properly I wanted and the financing I needed to open my first franchise. My ideas didn’t change and neither did my innovation – the only thing that was different was the name standing above me. I received all the training I needed from the franchisor to be successful and when my doors opened, I had the freedom to build my customer base the way I wanted to. In the span of 15 years, I opened eight franchises and began expanding even more with property ownership. Eventually, I had enough capital to take my experience with franchising and do what I always wanted in regards to retailing – automotive customization.

the BeNeFItSWhat makes franchise retail appealing is it grants entrepreneurs access to the

foundations of business – the backend support that makes operations tick – and frees up time for innovation, customer service, and staffing. In today’s world, if you’re not modifying your business at least once every two years, you won’t be able to keep up. If you’re too caught up with marketing, vendor management, and financing, you won’t be able to attract and retain a healthy customer base and workforce. A good franchisor will understand this and listen to your ideas on how to make the model better and give you the flexibility to try new retailing tactics.

Retailing also operates around consumer demand, and if you can’t strike a deal with the vendors holding the products customers want, you’ll struggle to survive. With franchising, you get the power of a corporate vendor management team who researches and negotiates deals to ensure your stores are always up-to-date with the latest trends, fads and want items. In retailing, these are what drive foot traffic and create lines that run out the door. A solo retailer is going to have trouble gaining access to the products that fuel success, let alone manage the buying power, marketing program, and customer service needed to maintain a positive reputable brand name.

the reALItyBeing successful at selling commodities takes marketing, endorsements, and negotiating power, and the difficulty

“With franchising, you receive immediate backing that affords you the ability to be taken seriously

as an established reputable business brand.”

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GCharles J. Bonfiglio, President & CEO, Tint World®

the true story of

of getting a retail establishment off the ground is getting the reputation required to be taken seriously. Without the support of a national brand, you’re going to struggle to get the financial backing necessary to even try, let alone maintain an evolving business. Even if you do break out on your own, you’ll be hard pressed to build profitability, and keep up with technology in the fast paced, ever-changing marketplace.

With franchising, you receive immediate backing that affords you the ability to be taken seriously as an established reputable business brand. You get access to a wealth of support and leverage, and if you choose the right franchise system, you’ll get the backing you need every step of the way to grow and maintain a profitable business. You even get to retain and implement your own creative thoughts on retailing.

My experience has taught me that being successful doesn’t have to get in the way of your creativity or individuality. If your dream is business independence and retail ownership, franchising can help you turn it into a reality.

Charles J. Bonfiglio is an American

entrepreneur, franchisor, and president

and CEO of Tint World®. After owning

a number of Meineke Car Care Centers

and starting an automotive e-commerce

business, he developed Tint World® to

begin franchising in 2006. Since then,

he’s been instrumental in growing the

brand to more than 60 established stores

in and out the United States. He lives in

Boca Raton, Florida.

To find out more, contact

Charles.Bonfiglio@tintworld.com.

Charles J. Bonfiglio

Franchising USA

are reaPiNg Big rewards iN resale fraNchisiNg

FeMale entrePreneurs

Franchising USA

Female entrepreneurship is booming in America. the number of women-owned businesses in the U.S. continues to climb and is now estimated to have surpassed 9.4 million enterprises. The American Express 2015 State of Women Owned Businesses Report shows that women-owned small businesses are on the rise, with around 30 percent of all small businesses owned by women in 2015.

However, that’s nothing compared to what’s going on in the $12 billion resale industry.

NTY Franchise Company, one of the fastest growing developers of resale brands in America, recently announced that of its four franchised brands, a whopping 67 percent of its franchisees are female. With trendsetting brands such as women’s upscale resale franchise Clothes Mentor and recently acquired children’s resale store Children’s Orchard, NTY Franchise Company executives are optimistic that those trends will continue.

“Without a doubt, women have become the driving force of our franchise growth,” said Chief Operating Officer Chad Olson. “I think there are a lot of things to like about resale, and many of them are particularly important to women.”

Kate Paynter and her mother, Becky Finger, have led the resale revolution

“Whether the resale brand focuses on apparel, children’s items, household goods or electronic

devices, female entrepreneurs are flocking to resale opportunities for several reasons.”

in Cincinnati for decades, with several resale franchise brands including Clothes Mentor. Paynter says their resale franchises buy more than $10 million worth of gently used items from local sellers annually, all while supporting charitable causes dear to her and her mom.

“It’s been a dream of ours to serve in this community,” Paynter said. “Along with putting dollars in the pockets of other Cincinnati women, we’ve been able to support local charities like March of Dimes, the Leukemia & Lymphoma Society and the Pink Ribbon Girls. All while doing what we love!”

Suzanne Simpson, another pioneer in the resale industry, says she’s been able to pay local women more than $4.6 million in the past few years with her resale brands like Clothes Mentor in Ocoee, Florida. Like Paynter and her mom, Simpson enjoys putting more money in local women’s pockets while also donating to One Heart for Women and Children, a local charity that provides the necessary resources for families as they transition through and overcome varying hardships of daily living in the Central Florida area.

“It’s been a true blessing to do what we do here,” Simpson said. “When we succeed, our community succeeds. We help local families put some extra money

in their pockets when we buy their gently used items, plus we get to support great charities like One Heart for Women and Children. I couldn’t ask for a better situation.”

For Clothes Mentor franchisee Christine Ilvedson, the regular interaction with customers-turned-sellers has made her life as an entrepreneur more enjoyable. Though she operates in the small market of Fargo, North Dakota, her Clothes Mentor is one of the top revenue generators in the entire NTY Franchise system. She has spent more than $2 million purchasing gently used items from women in Fargo in the past five years.

“I’m living my dream,” Ilvedson said. “I spend my day interacting with customers who engage with us so often that we’ve become friends. I’m able to provide them with some money for the great stuff they bring in to sell, then helping them look great at a fraction of what they would pay at retail.”

Whether the resale brand focuses on apparel, children’s items, household goods or electronic devices, female entrepreneurs are flocking to resale opportunities for several reasons.

It’s environmentally and community friendly: A recent story in the LA

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Times focused on the growing body of social science indicating that “women consistently (highly) rank values strongly linked to environmental concern — things such as altruism, personal responsibility and empathy.” Resale stores keep unwanted items out of landfills and extend their use by offering them to new customers. Further, resale stores in the NTY Franchise Company system offer their goods for as much as 70 percent less than retail price, making it easier for people to get the items they love without straining the family budget.

Greater emotional connection with

customers: Unlike retail stores focused exclusively on selling items, resale stores feature twice as many engagement opportunities, thanks to their two-way commerce model. Store owners develop more meaningful relationships with customers that make regular visits to buy and sell items and apparel.

Shopping is half the job: A 2013 survey of more than 2,000 people found that men got bored with shopping in just 26 minutes while women could easily last for two hours. In a job where 50 percent of your interactions with customers involving shopping their used goods, women are

more likely to not just survive the daily shopping task, but enjoy it.

Founded in 2006 by resale godfather Ron Olson, NTY Franchise Company features five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults.

For more information, visit www.ntyfranchise.com

“I’m living my dream. I spend my day interacting with customers who engage with us so often that we’ve

become friends.” - Christine Ilvedson

“Along with putting dollars in the pockets of other Cincinnati women,

we’ve been able to support local charities like march of Dimes, the

Leukemia & Lymphoma Society and the Pink ribbon Girls. All while doing

what we love!” - Kate Paynters

“When we succeed, our community succeeds. We help local families put

some extra money in their pockets when we buy their gently used

items, plus we get to support great charities ” - Suzanne Simpson

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Jeff Grandfield & Dale Willerton, The Lease Coach

understanding the signiFicance

oF signage– FOR FRANCHISE TENANTS

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As we explain in our new book, Negotiating Commercial Leases & renewals For Dummies, it’s much easier for customers to find your franchise store if you have a prominent sign with your business name on it out front. the bigger the sign, the better – and the more attractive the sign, the better too. Don’t just assume that your landlord shares your vision of a large sign identifying your franchise story on or in front of his property. Franchise tenants can easily overlook that their landlords may want to restrict all tenant signage on the property. Tenant requests for more or larger signage are often rejected by landlords.

Landlords impose signage criteria and restrictions mainly because whatever they allow one tenant to do signage-wise, the other tenants may also want to do. Most landlords prefer an uncluttered property without extra signage simply because it looks more attractive. If your landlord does allow you to place a sign on the property, creating and maintaining it is typically your responsibility. This extra work on your part, however, can be beneficial:

Signage can make your franchise store business easier to find for customers who are specifically looking for you. Obviously, if you’re located in an area with a sea of shopping plazas, a sign with your name on it makes it much easier for customers to pick you out of the crowd.

Signage can bring in customer traffic. Motivated shoppers who don’t know you’re there may be drawn in by your sign as they walk or drive by.

Signage will become recognized by local residents who will see you as they commute to and from work daily. These residents are eventually more likely to

visit your franchise store because they are familiar with your name.

With that being said, note that your landlord may allow certain types of signage and not others, Typically, the landlord usually requires graphic drawings of your sign for written approval or provides you with a signage criteria package that you must follow as part of your lease agreement.

The following are among the most common types of signage:

Building signage: This is the signage that almost every business will have and it will generally appear directly above your main entry door. However, do not overlook the possibilities of having signage on multiple sides or even the rear of the commercial property if that will provide you additional exposure to walk-by or drive-by traffic.

monument signage: A monument sign resembles a tombstone coming out of the ground and, typically, advertises just one or a few select tenants. Monument signs are not that common, but they can make your franchise store business look more substantial if you can get one.

Pylon signage: The tall sign by the roadway that tells passers-by what tenants are in the plaza is called the pylon sign. A property may have several pylon signs, which all display the name of the plaza at the top of the sign. Don’t just assume that you will automatically get a panel of the pylon sign or signs. There are often more tenants in a property than sign panels available, so make this a part of your offer to lease or lease renewal. Ideally, try to pick your actual panel (both front and back), because a panel higher up on the pylon sign is usually more visible and read first.

Sandwich board signage and banners: These may be extremely useful for franchise store tenants offering a limited time special but landlords may say no. If these are of interest to you, negotiate for

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them in advance. The Lease Coach will often negotiate predetermined times when the tenant can use these signs … landlords may be more comfortable in knowing these signs will not be out all year and thereby not create signage clutter.

temporary pull-away signage: These are the signs on wheels covered with images or business messages. Most landlords hate these signs and the problems that they create. Don’t just assume that you may be able to have pull-away signage for your grand opening. Landlords think these signs clutter or obstruct their property and may only allow limited numbers of pull-away signs to be used (and shared) by many tenants throughout the year. Again, negotiate pull-away signage rights up front, because the landlord doesn’t have to let you put these signs up if they are not included in the lease agreement.

For a copy of our free CD, Leasing Do’s & Don’ts for Franchise Tenants, please e-mail your request to DaleWillerton@TheLeaseCoach.com.

Dale Willerton and Jeff Grandfield - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FoR Dummies (Wiley, 2013).

Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or visit www.TheLeaseCoach.com.

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As shoppers clear away decorative cotton cobwebs and dust off their fiber optic reindeer, retailers are preparing for high inventory turnover unique to this time of year. Despite efforts to develop accurate forecasts, the slightest oversight can shake even the most prepared retail businesses right down to the bottom line. For instance, retailers felt the heat of surprise demand after the success of Disney blockbuster Frozen rocked sales in the toy industry in 2013. According to a survey conducted by Fortune, Frozen merchandise topped one in five parents’ holiday shopping lists following the film’s release in November of that year.

Ultimately, retail franchises nationwide, including Toys ‘R Us and the Disney store, suffered from total depletion of their Frozen inventory at a rapid rate. The shortage lingered long into the Spring of 2014, as Walt Disney Company acknowledged a time lag in the supply chain, sparked by surprise consumer demand. And though retailers everywhere could reasonably consider the factors that influenced that scenario, explaining the

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effects of poor inventory management to a wide-eyed child with high hopes for an Elsa doll is no easy feat.

With the fall and winter holidays occurring in rapid succession, allocation, pricing & promotional strategy, optimizing assortment, and replenishment can pose a challenge for retail franchises. Though businesses have different ERP or POS systems, predictive analytics solutions seamlessly integrate with their existing IT infrastructure and offer a viable means of optimizing franchise supply chains, and promotions to ensure that no customer – big or small – has to “let it go” when it comes to their seasonal preferences.

Here are three ways that business owners can facilitate a speedy turnover without much negative impact to their bottom line:

harvest a bounty of SKUs for lessFranchise systems, in particular, encounter unique challenges in terms of purchasing, allocating, and replenishing inventory optimally. A franchise retailer might opt to participate in a bulk discount to cut costs on inventory. However, evaluating the program’s viability can be tricky. Retailers could benefit from intelligent prescriptive tools that can uncover whether or not a vendor’s “special offer” is actually profitable, and suggest an

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STOckIng ThEactionable plan to allocate, and sell off the merchandise effectively. This can also apply to planning, and maintaining the correct assortment. Decision-makers must take physical space restrictions, demand forecasts, and product cannibalization, as well as assortment depth vs depth factors into account for each participating store. Additionally, they must account for the fact that not all stores perform the same, or have the same geo-demographic attributes.

Smart predictive analytics systems will suggest the optimal “breakdown” of how much each store needs of each respective item. Beyond that, they can assist with replenishment – tracking sales and demand in real-time while automatically generating new orders. These systems consider demand, on-hand inventory, in-transit inventory, and on-order inventory to reduce manual labor while ensuring that retailers never run out of hot-ticket items at any location.

make a list and check it twiceMany retailers are using traditional statistical methods of forecasting, and business intelligence tools that are backward looking. This leaves retail analysts to consolidate forecasts manually, as they are limited by the inability to look at their businesses more granularly and comprehensibly.

These methods tend to fall short when it comes to accurately calculating lost sales, for instance. Without careful consideration, retailers might forecast a similar scenario the following year. Furthermore, if a retailer plans to introduce new products or product categories, he or she has no history to draw upon when it comes to determining how much product to order, which stores should

receive it, and what the pricing should be.

A predictive analytics solution that considers the effects of promotion, price changes, events, and seasonality can help retailers understand what the true demand is and how that demand might change during the holiday season.

execute merrier promotionsSpecial events, one-time deals, and promotions are difficult to forecast in terms of projecting increased sales. Having the right inventory at the right place to fulfill a promotion is a delicate balancing act in itself. Add this to the ongoing stress of optimizing pricing product-by-product and this area can easily become a pain point for retailers.

While many retailers try to keep their price at a certain point to compete with competitors, this is a grave mistake. But if price wars are not profitable, then what is?

Many retailers try to focus on competitive pricing. These businesses are often making a costly mistake. While maintaining a competitive position, or brand image, is important, retail predictive analytics will optimize prices and promotions within the confines & policies of the retailer while maximizing sales and profitability.

Contemporary predictive analytics solutions integrate critical aspects of your business such as promotions and replenishment, so that retailers actually bring in enough promotional inventory to proactively fulfill the uplift in sales. They can also suggest which media types work better for certain products. While Facebook advertising might have been a big hit for getting this year’s Halloween costumes off the shelves, in-store

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advertising might be more effective for those inflatable snowmen.

Additionally, these systems approach price optimization in an integrated way. It’s impossible to look at all products at all stores individually, yet different factors drive sales for different products. For instance, some products are driven by an optimal price, while others are driven by a noticeable discount. Smart solutions can identify what drives sales of each product and recommend the pricing and markdown strategies that will get rid of inventory by end of season at maximum gross margin.

As retail franchises prepare for the holiday rush, predictive analytics solutions can help them establish a method for the inventory madness. With the help of proven retail predictive analytics technology, franchise businesses of all sizes and structures can melt away the pressures of seasonal demand this holiday season.

Yan Krupnik is the Business Development Manager at Retalon, a leading provider of advanced retail predictive analytics solutions for Supply chain, Inventory Management, Pricing, Merchandising, Planning, and Marketing operations designed for the unique and complex environment of Omni Channel retailing.

To find out how Retalon can support your franchise retail business, please call 1.888.837.0268 ext. 224 or e-mail discover@retalon.com

www.retalon.com

“Smart predictive analytics systems will suggest the optimal “breakdown” of how much each

store needs of each respective item.” Sleigh